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QHR Technologies Inc. TSXV: QHR

QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

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Page 1: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

QHR Technologies Inc.

•TSXV: QHR

Page 2: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

This presentation has been prepared by QHR Technologies Inc. using its best effortsto realistically and factually present the information contained. However,subjective opinion, dependence upon factors outside QHR Technologies Inc.’scontrol and outside information sources unavoidably dictate that QHRTechnologies Inc. can not warrant the information contained to be exhaustive,complete or sufficient. In addition, many factors can affect our business plan whichcould significantly alter the results intended by QHR Technologies Inc., renderingthe business plan unattainable or substantially altered. Therefore, interested usersshould conduct their own assessment and consult with their own professionaladvisors prior to making any investment decisions.

This business plan and presentation do not constitute a prospectus or publicoffering for financing, and no guarantees are made or implied with regard to thesuccess of QHR Technologies Inc.’s proposed ventures.

2

Disclaimer

Page 3: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

• High Growth and High Margin: Revenue CAGR of 30% over last 4 years; high growth rate expected to continue; EBITDA margin approx. 25%

• Recurring Revenue: Over 60% recurring revenue & 95% customer retention rate

• Market Leader in EMS: Full service offering (payroll, HR, staff scheduling & financials) is one of the leading software offerings which has resulted in significant RFP wins

• Market Leader in EMR: One of Canada’s largest Electronic Medical Records (EMR) platforms; Utilized by over 2,000 physicians with 1,000 additional physicians on legacy billing systems

• Resistant to Economic Downturns: Healthcare industry standard of care is maintained

• Highly Experienced Management Team

• Proven Consolidator: Ability to execute on accretive acquisitions

• Attractively valued compared to peers

3

Investment Highlights

Page 4: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

OptionsNumber

Exercise Price Expiry Date

1,400,000 $0.25 Jul 31, 2013

WarrantsNumber

Exercise Price Expiry Date

2,000,000$0.60 (1st Year)$0.70 (2nd Year)

June 30, 2011

Shares Issued28,053,259 Common Shares$9,851,745 Paid in Capital

Directors, Officers, Employees & FamilyApprox. 10M or 35% of Common Shares

Corporate Share Structure

Page 5: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

• QHR Technologies Inc. (QHR) is a publicly traded Canadian company specializing in software designed to improve the efficiency of professionals in healthcare and other markets. The company currently offers an integrated Enterprise Management Solution (EMS) and an Electronic Medical Records (EMR) solution.

• EMS Division: Develops and delivers integrated human resource management, payroll, staff scheduling and financial software systems for the healthcare and social services sector

• EMR Division: Provides electronic medical records applications for physicians’ medical offices

6

About QHR

Page 6: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

QHR Technologies Inc. (QHR)Corporate Operations

QHR Software Inc.Quadrant HR TM

HR, Payroll, Staff Scheduling, Financials

Optimed Software Corporation

Accuro TM

Clinic & Physician Software

Cloudwerx Corp.Data Hosting Service

EMS division EMR division

Corporate Structure

Page 7: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

Al Hildebrant – President & CEO• Started New Horizon Technologies in June 1997 which became QHR Software Inc. in June 2000 through a public

offering• Started Total Care Technologies in 1991, a healthcare staff scheduling software vendor (now Kronos)

Charles LaFlèche – Executive VP of Business Development• Founded Momentum Healthware Inc. in 1995 which became a Microsoft Gold business partner• Director of QHR since November 2006

Larry Smith – COO QHR Software• Former COO of Total Care Technologies and former President of Vadim Systems

Tom Mamic, CA – CFO• Former President and CEO of Agrisoma Biosciences Systems• Experience in a variety of managerial roles for both private and public technology companies

Fred Chapman – General Manager Optimed Software• Served in various roles at Clinicare from 1989-2005 including his most recent position as COO

Chairman of the Board: Douglas Blakeway Directors: Al Hildebrandt, Charles LaFlèche, Robert McGowan, Dr. Ernest Wigmore, Ian

MacPherson, Dr. Tom Kinahan, Victoria Withers

5

Management & Directors

Page 8: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

Revenue & EBITDA Growth

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

QHR Revenue

Recurring Revenue 2,250,000 3,000,000 3,800,000 4,800,000 2,966,512 4,987,932

Annual Revenue 4,228,705 4,721,439 5,893,650 6,521,364 4,480,366 9,980,328

2005 2006 2007 2008

9 Months

Ended

9/30/2008

9 Months

Ended

9/30/2009

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

QHR EBITDA

Annual EBITDA -580,000 -120,000 530,000 610,000 104,940 2,200,368

2005 2006 2007 2008

9 Months

Ended

9/30/2008

9 Months

Ended

9/30/2009

Page 9: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09

Revenues 1,503,97 1,340,90 1,289,95 1,321,81 1,509,81 1,772,10 1,671,43 1,515,67 1,293,2 2,042,0 3,446,60 3,234,23 3,298,49

Proft (Loss) 227,065 16,434 17,563 21,233 60,888 112,871 126,988 11,032 -215,043 331,750 753,849 212,614 235,605

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

QHR Technologies Jul 1/06-Sep 30/09

9

Quarterly Revenue & Earnings

Page 10: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2005A 2006A 2007A 2008A 2009E 2010E

Recurring 2,250,000 3,000,000 3,800,000 4,800,000 7,200,000 12,500,000

Recurring Revenue

10

Recurring Revenue

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EMS Division – Workforce Suite

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*includes Staff Scheduling

Competition – Workforce Suite

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EMS Division – Quadrant Financials

Page 14: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

Competition – Financials Suite

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Clients by Healthcare Sector

Market Footprint

Page 16: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

QHR’s EMR DivisionClinic Software and Service

Recurring Revenue model

EMR Division

Page 17: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

• Total of over 62,000 physicians in Canada

• Only approved EMR vendor in Saskatchewan and one of only 4 approved vendors in Manitoba

• 900 physicians on Optimed’s Accuro EMR (31% increase from 2008)

• Fully Functional & Integrated

• Well suited for specialists

• #1 ranked national EMR vendor according to Canadian EMR (www.canadianemr.ca)

Clinicare Acquisition:

• Has brought total physicians supported by QHR’s EMR system (Optimed) to over 3,000 with over 2,000 utilizing EMR

• Recurring EMR division revenue incl. Clinicare will be in excess of $6 mil. per year (total consolidated QHR 2010 recurring revenue will be over $12 mil.)

• Approved in Ontario (1 of 6) and Manitoba (1 of 4)

EMR Division – Optimed Software Corp.

Page 18: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered
Page 19: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

Physicians

BC 9,600

AB 6,800

SK 1,750

18,150

MB 2,300

ON 23,683

25,983

=====

44,133

EMR Market: BC, AB, SK, MB, ON

Page 20: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

• Acquisition of Clinicare makes QHR’s Optimed one of the most widely used EMR platforms by physicians in Canada

• Recurring revenue of over $6 mil. per year (incl. Clinicare)

• Manitoba Health announced Optimed as 1st “Approved” vendor

▫ Manitoba Market now open to Optimed; 2,300 doctors

• Saskatchewan SMA announced Optimed as 1st “Approved” & only vendor

▫ 760 doctors of 1,400 potential already supported by Optimed

• Calgary Scientific Inc. partnership for Optimed’s Accuro EMR Product

▫ Provides DI Image and report access via the Web and iPhone

▫ Exclusive on Sask, Manitoba & Quebec; Partnered in Alberta

• Clinicvault merging with SEBO hosting systems to form Cloudwerx

• QHR’s EMR platform is highly transferable to the U.S. market

EMR Division Highlights

Page 21: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

Al Hildebrandt

President & CEO

Phone: (250) 979-1701

Cell: (250) 878-9100

E-mail: [email protected]

Contact

Page 22: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

APPENDIX

Page 23: QHR Technologies Inc. - Tangent Management · could significantly alter the results intended by QHR Technologies Inc., rendering the business plan unattainable or substantially altered

#1 Whidden Systems (Mar 2003)

▫ DOS based payroll for 10,000 employees in NS and PEI

▫ $400k/year revenues, 6 employees

▫ Purchased for $250k over 2 years

#2 Accuro EMR product (Apr 2004)

▫ Purchased SW Asset from Optimedirect Corp (Dr. Tom Kinahan) $550k / 4 months

▫ Foundation EMR product for Optimed

▫ 5 of 7 staff still with Optimed

▫ 69 physician clients (65 still with Optimed)

#3 Medsoft Billing SW rights in Sask (Jun 2006)

▫ 488 doctors generating $23k/year

▫ Paid founder $125k over 3 ½ years

#4 Medicentre EMR product (formerly Rave) purchased from iQmedix (Oct 2006) in Sask

▫ $250k cash

▫ 1 support staff (still with Optimed)

#5 Exan DOS based Billing system in BC (my original ‘88-’91 Medical experience company)

▫ Announced as 150 doctors but in reality less than 40 doctors, mostly GP’s

▫ Paid $55k, no staff

#6 National Medical (Aug 2007)

▫ Purchased company, EMR software and 450 physicians clients in Alberta

▫ Announced by Wolf as acquisition on Feb 6/07, but that one fell apart by Jun 20/07

▫ By that time, all staff but 4 where gone (2 staff today)

▫ Paid 2M shares ($600k)

#7 Clinicvault Inc. (Sep 2008)

▫ EMR Hosting operations for 5 EMR products, 5 staff (4 staff today)

▫ Paid $600k in debt assumption & shares

#8 Momentum Financial product (Jan 2009)

▫ Paid $5M + $1.7M debt assumption

▫ Strong Microsoft alliances

▫ 30% of clientbase already overlapped

▫ Overlap in $25M LTC Ontario Market & RFP’s

▫ 7 staff, Winnipeg office (now 10)

#9 Cloudwerx Data Solutions (July 2009)

▫ Purchased SEBO data centre assets and clientbase

▫ $455,000 (700,000 QHR shares @ $0.65)

▫ 5 staff, Calgary office

#10 Clinicare Corporation (Dec 2009)

▫ Paid $5.3M including $1.8M debt assumption

▫ 1,450 doctors, 26 year old EMR pioneer

▫ Inherited 35 staff, Calgary office (now 27)

Acquisition History

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