Omnicell, Inc. Investor Presentation. April, 2018

Transcription

1 Omnicell, Inc. Investor Presentation April,

2 Safe Harbor Statement This presentation contains certain forward-looking statements. These statements are based on the current estimates and assumptions of the management of Omnicell, Inc. (or Omnicell or the Company ) as of the date of this presentation and are naturally subject to uncertainty and changes in circumstances. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Actual results may vary materially from the expectations contained herein. When used herein, the words may, will, should, could, would, plan, anticipate, believe, estimate, intend, project, potential and expect and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may cause the actual results of Omnicell to be materially different from those reflected in such forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others, those set forth under the headings Note Regarding Forward-Looking Statements, Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations in the form 10K filed February 27, Except to the extent required by applicable securities laws, Omnicell is not under any obligation to (and expressly disclaims any such obligation to) update its forward-looking statements, whether as a result of new information, future events, or otherwise. All statements contained in this presentation are made only as of the date of this presentation. Use of Non-GAAP Financial Measures In our earnings releases, conference calls, slide presentations, or webcasts, we may use or discuss non-gaap financial measures as defined by Regulation G. The GAAP financial measure most directly comparable to each non-gaap financial measure used or discussed, and a reconciliation of the differences between each non-gaap financial measure and the comparable GAAP financial measure, is available within our public filings with the Securities and Exchange Commission, available on the Investors section of our website at 2

3 Vision: Improving Healthcare for everyone Mission: Changing the practice of healthcare to improve provider and patient outcomes 3

4 Solutions to Deliver the Highest Levels of Care 4

5 Omnicell Growth Strategy Differentiated Platform 12 consecutive years of KLAS Awards Innovative XT Series Performance Center Robotic Pharmacy Automation New Markets IV Solutions Retail pharmacy software solutions International markets Growth via Acquisitions Aesynt acquisition (2016) Ateb acquisition (2016) InPharmics (2017) 5

6 Innovation Leader. Platform Delivering Profitable Growth Differentiated Platform New Markets Growth via M&A Significant Growth Runway 6

7 Differentiated Platform: Medication Management Automation Predictive Analytics using Artificial Intelligence Real-time, cloud-based reporting, analytics, and benchmarking drive more strategic decision making Performance-Driven Partnerships Solutions are customizable, scalable and easily integrated into hospital IT systems, including EHRs, to meet any organization s unique needs Workflow Automation Engine Cloud Data Platform Autonomous approach leveraging innovative hardware and software shifts staff away from operational demands to meaningful clinical contributions 7

8 Differentiated Platform: Omnicell Continuum of Care Solutions Centralized Pharmacy Decentralized Pharmacy Enterprise Software Solutions Medication Adherence Retail Pharmacy XR2 Automated Central Pharmacy System XT Series Medication & Supply Dispensing Cabinets Unity Platform SureMed Adherence Packaging Omnicell Robotic Dispensing Systems i.v.station MedCarousel IVX Workflow Central RX XT Anesthesia Workstation Omnicell Analytics Inventory Automated Decision Support Guided Packing SureMed Adherence Packaging Medisafe Adherence Monitoring Workflow RX Inventory Management Software XT AcuDose Enterprise Medication Manager Suite of Automation Packaging Solutions Pharmacy-based patient care software REAL TIME PERFORMANCE CENTER TM ON CLOUD Continuum of Care 8

9 Differentiated Platform: XR2 Automated Central Pharmacy System Innovation Key step toward fully automated pharmacy Innovative workflow automation High capacity and formulary coverage Significant efficiency improvements Modular design Beyond upgrade, significant greenfield and competitive conversion opportunities Multiple contracts signed for both centralized and decentralized models Total Opportunity of $1 Billion+ 9

10 Differentiated Platform: Workflow Automation Performance Center integrates data, analytics to deliver actionable solutions $ ENABLES HEALTH SYSTEMS TO EFFICIENTLY MANAGE MEDICATION ACROSS ALL CARE SETTINGS AT SCALE AUTOMATION OF MEDICATION MANAGEMENT PROCESSES 2.2% AVERAGE MEDICATION COST REDUCTION REAL TIME PERFORMANCE CENTER TM ON CLOUD 10

11 Differentiated Platform: Innovation Drives Differentiation Unity Platform Enables Cadence of Innovation 3 Compared with similar units on the market 4 Data collection from cabinet log file analysis 5 Omnicell customer data 11

12 Differentiated Platform: Improving Key Pharmacy Priorities Operational Efficiency Inventory Visibility, Med Expiration Reductions Self-Distribution Demand Planning, Forward Buys Regulatory Compliance 340B Controlled Substances DSCSA Patient Outcomes Medication Usage Analytics Diversion Services IV Pump Integration Predictive software solution uncovering real time actionable opportunities delivering improved performance for pharmacy operations 12

13 Differentiated Platform: Improve Pharmacy Operations Performance Real-time software solutions combined with coaches delivering improved performance for pharmacy operations 13

14 Differentiated Platform: Competitive Differentiators Selected Significant Competitive Differentiators: Only Comprehensive Platform in Medication Management and Medication Adherence pharmacy automation: Enabling Solutions and Platform Selling Enabling Strategically Business Partnering with Health Systems Superior Interoperability with EHR Systems Superior Storage, Formulary Coverage, and Speed (XT Series) Modern and Modular Starbus Architecture (XT Series) Unique Controlled Substance Dispensing Automation Solution Best in Class Implementation Process Integrated Medication Adherence Solutions Only Available Suite of IV Automation Solutions 14

15 Differentiated Platform: Areas of Success Key Awards Frost & Sullivan Smart Hospitals Pharmacy Automation Company of the Year 2018 Best in KLAS KLAS leadership awards for 12 consecutive years Vizient Innovative Technology Designation for IV Compounding Technology and XT Automated Dispensing System Pittsburgh Technology Council Innovator of the Year, Life Sciences Finalist 15

16 12 Consecutive Years of KLAS Leadership * Best in KLAS Award - Automated Dispensing Cabinets: KLAS Category Leader Automated Dispensing Cabinets ** KLAS Category Leader Medication Carousels KLAS Category Leader Robots (Oral Solid) *2018 Best in KLAS: Software & Services, KLAS Enterprises, LLC. All rights reserved. **Category discontinued and combined with Best in KLAS Automated Dispensing Cabinets category in

17 Innovation Leader. Platform Delivering Profitable Growth Differentiated Platform New Markets Growth via M&A Significant Growth Runway 17

18 New Markets: IV Automation Delivering Cost Savings, Safety, and Compliance i.v.soft integrated software portfolio i.v.station i.v.station ONCO IVX Workflow non-hazardous compounding hazardous compounding semi-automated workflow Only full line of integrated automated and semi-automated IV compounding solutions i.v.station, i.v.station ONCO, and i.v.soft Assist are manufactured by Health Robotics, S.r.l. 18

19 New Markets: Medication Adherence Platform can Benefit over 30 Million Americans Taking Five or More Daily Medications Causes of Non-Adherence Other* Forget to Use / Refill or Confused Medication Non-Adherence impact Deteriorated Treatment Outcomes Increased Hospital Readmissions Increased Cost Cost Unwanted Side Drugs Effects not Effective No Symptoms / Believe Drugs Opportunity to Reduce Medication Non-Adherence with Scalable Solutions *Other reasons include difficulty swallowing, bad taste, drugs prevented activities, difficulty getting prescriptions filled. Source: Harris Interactive Patient Survey, 2005, CDC/NCHS, National Health and Nutrition Examination Survey

20 New Markets: Scalable Medication Adherence Platform delivering outcomes for patients, pharmacies, and payers 20

21 Innovation Leader. Platform Delivering Profitable Growth Differentiated Platform New Markets Growth via M&A Significant Growth Runway 21

22 Growth via M&A: History of Successful Acquisitions Acquisitions since 2012: 2012 MTS Medication Technologies - Medication Adherence Products 2014 Surgichem - UK Medication Adherence Products 2015 Mach4 Pharma Systems - Robotic Dispensing Systems Europe 2015 Avantec - UK Distributor of Omnicell Systems 2016 Aesynt - Medication Dispensing, Central Pharmacy, IV Automation and Analytics 2016 Ateb Pharmacy Software Solutions Provider 2017 InPharmics Pharmacy Software Solutions Provider 22

23 Growth via M&A: Acquisitions Criteria Acquisitions Criteria Strategic fit in the Omnicell Platform Attractive Customer Base Product / Solutions Cross Selling Opportunities Proprietary Technology Scalability Accretive to Non-GAAP EPS 23

24 Innovation Leader. Platform Delivering Profitable Growth Differentiated Platform New Markets Growth via M&A Significant Growth Runway 24

25 Continuum of Care Centralized Pharmacy Decentralized Pharmacy Enterprise Software Solutions Medication Adherence Retail Pharmacy 2 XR2 Automated Central Pharmacy System XT Series Medication & Supply Dispensing Cabinets Unity Platform SureMed Adherence Packaging Omnicell Robotic Dispensing Systems MedCarousel i.v.station IVX Workflow Central RX XT Anesthesia Workstation Omnicell Analytics Inventory Automated Decision Support Guided Packing SureMed Adherence Packaging Medisafe Adherence Monitoring Workflow RX Inventory Management Software XT AcuDose Enterprise Medication Manager Suite of Automation Packaging Solutions Pharmacy-based patient care software Annual TAM U.S. $0.8B $1.5-$2.0B $0.3B 3 $0.8-$1.1B $0.8-$1.3B Annual TAM OUS 1 $0.4B $1.0B $0.8-$1.1B $1.1-$1.6B Market Position U.S Market Position OUS Multi Med, 3 RDS REAL TIME PERFORMANCE CENTER TM ON CLOUD 1 OUS markets referenced above include Western Europe, China and the Middle East 2 Market defined as Single and Multidose blister cards and equipment, pharmacy-based patient care software, and robotic dispensing systems 3 TAM only includes Performance Center TM market. TAM Revenue for other Software products is included in Centralized and Decentralized Pharmacy TAM 25

26 Significant Growth Runway: Healthcare Market Trends & Omnicell Solutions Are Strongly Aligned Healthcare Trend Providers evolving into enterprises Health systems consolidation Pharmacies becoming more strategic Double digit medication cost increases Increased penalty environment Healthcare Enterprise Need Integrated & automated systems Scalable systems Strategic solutions managing complexity Medication cost reduction Increase in patient medication adherence Omnicell Solution Strength Leading interoperability and automation Leading scalability and implementation practices Broadest & leading platform Performance Center enterprise solution Leading medication adherence software and automation 26

27 Significant Growth Runway: Drivers of Growth Drivers of Growth Organic Market Growth in Sizable Markets Growth in International Adoption of Automation Solutions Competitive Conversions fueled by the Differentiated Omnicell Platform Replacement Growth (i.e. upgrades of existing installed base) Regular Annual Cadence of Innovation Strategic Solutions Portfolio selling to Loyal Customer Base New Markets: Automated IV Solutions Medication Adherence Automation Ecosystem 27

28 Financial Success 28

29 Financial Success: Revenue Sources 2017 Types of Revenue Revenue Characteristics Capital Equip & Software 60% Recurring Service 29% Recurring U.S. Consumables 87% 11% Loyal Customer Base with Customer Retention near 100% Software Component Delivers Differential and Value Add Includes Growing SAAS Revenue Component Proprietary Service Revenue 29

30 Financial Success: New Accounts/Competitive Conversions $160 Competitive Conversions Greenfield Accounts $140 $40.1 $120 $100 $18.9 $24.8 $18.9 $80 $60 $40 $20 $0 $24.7 $27.2 $30.7 $18.9 $23.2 $110.2 $124.3 $28.7 $39.3 $90.6 $96.9 $71.4 $49.4 $47.8 $46.9 $50.6 $32.5 $

31 Financial Guidance Q Full Year 2018 Product Bookings Not Provided $625 to $660 Million Non-GAAP Revenue $185 to $190 Million $780 to $800 Million Non-GAAP EPS $0.36 to $0.42 $1.85 to $2.05 *For 2018, we have adopted ASU Revenue from Contracts with Customers, which impacts the timing of revenue recognition and requires the presentation of certain costs previously reported as selling expenses as a reduction of revenue, both of which are not anticipated to be material. The reclassification of selling costs results in a reduction of net sales, but has no impact on operating income or net earnings. The impact of this reclassification is included in the provided 2018 guidance. 31

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