Investor Presentation. January 2015 OTCQB: AUXO

Transcription

1 Investr Presentatin January 2015 OTCQB: AUXO

2 Safe Harbr This presentatin cntains frward-lking statements within the meaning f the "safe harbr" prvisins f the Private Securities Litigatin Refrm Act f These statements are based n management's current expectatins and beliefs and are subject t a number f risks and uncertainties that culd cause actual results t differ materially frm thse described in the frward-lking statements. We refer yu t the risk factr sectins in ur recent SEC filings, including ur Annual Reprt n Frm 10-K and ur Quarterly Reprts n Frm 10-Q.

3 Auxili Snapsht OTCQB AUXO Share Price (1/7/15) $1.10 Market Cap (1/7/15) FD Shares Outstanding YTD 2014 Revenue YTD 2014 Adjusted Incme Frm Operatins* FY 2013 Revenue FY 2013 Adjusted Incme Frm Operatins* Cash (9/30/14) $26.7M 24.3 M $31.9 M $1.3 M $43 M $2.5 M $4.3 M *Adjusted incme frm peratins excludes charges related t stck based cmpensatin and charges related t the amrtizatin f intangible assets. Please see ur annual and quarterly financial results fr cmplete details.

4 Cmpany Overview Auxili - The natin s pineer and leader in Managed Print Services (MPS) and IT Advisry fr the healthcare industry Funded in 2004; headquartered in Missin Viej, CA First health care exclusive, vendr neutral MPS cmpany in the US IT Advisry and Managed Services ffering with a Management SaaS technlgy slutin, prviding enterprise-wide security Natinal presence in 22 states acrss the cuntry 9% Recurring service revenue increase* Guarantees 10% t 30% savings Cntracts with ver 120 hspitals cvering ver 2,000 affiliated care facilities Manages ver 1.6 billin dcuments annually Maintains mre than 60,000 devices Serves mre than 250,000 end-users added >60 new hspitals since December 2011 *Recurring service revenues frm new cntracts clsed between December 2013 and May hspital accunts >2,000 facilities cmpleted 60 MPS g lives in 2012 thrugh the first half f 2013

5 The Auxili Business Mdel Managed Print Services (MPS) and IT Security Advisry and Managed Services: Managing the prcess f dcument prductin and wrkflw in a hspital envirnment with the gal f driving peratinal efficiencies, cst imprvements and emplyee prductivity. Additinally the cmpany prvides a unique suite f services t ensure enterprise wide IT security. 1 Crssed ver t prfitability frm cntinued grwth f custmer base 2 Clsed ver $90+M f new business since December 2011 in three t five year recurring revenue cntracts 3 Grss margins n mature business between 20% and 25% 4 Significant rganic grwth and diverse referral netwrk including custmers

6 Recent Develpments 12/22/14 Wn five-year $18 millin cntract with the largest regin f a Tp 10 US Health System. This cntract, cmmencing n February 2, 2015, adds t Auxili's business partnership and extends the terms f tw f its existing cntracts with the health system's netwrk f hspitals and deepens its penetratin with the large multilcatin health system. 11/13/14 Signed a cntract t expand infrmatin security services with a leading academic medical center. 11/12/14 - Added Printer Fleet Security Service t Auxili s grwing prtfli f prducts and services. This service prtects rganizatins' printer fleets, an increasing entry surce fr hackers int a hspital's netwrk. 11/10/14 - Majr academic medical center renewed its annual Risk Assessment Managed Services cntract and increased the scpe f wrk t include assessments at nt nly its medical center, but at the greater university rganizatin as well.

7 Financial Highlights In $ millins $50.00 $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $- $21.85 Revenue $35.65 $ % CAGR $ YTD 2014 In $ millins $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- $(0.50) $(1.00) $(1.50) $(2.00) $(2.50) Adjusted Incme frm Operatins $(2.00) $(0.76) $2.50 $ YTD 2014 *Adjusted incme frm peratins excludes charges related t stck based cmpensatin and charges related t stck granted fr marketing activities. Please see ur annual and quarterly financial results fr cmplete details.

8 Addressing Twering Inefficiencies Hw paper use in hspitals stacks up = 4,982 feet 15 Millin pages 1,250 ft. 1,776 ft. 1,614 ft. 2,717 ft. Typical paper vlume in an 8-hspital system is 15M pages/mnth Empire State Building Freedm Twer Wrld Financial Centre Burj Khalifa Hspital Paper Vlume

9 Print Vlume Frecast: Upward Trend Printed Page Vlume t Reach 1.2 Trillin in the U.S. by 2015* Debunking the Myth f Less Print Vlume in Health Care Hspitals are printing mre, nt less Patient Cmmunicatins are n paper Registratin and Discharge Cmmunicatin t Insurance Cmmunicatin t Gvernment Cmmunicatin t Emplyers Cmfrt & Familiarity fr Physicians and Physician Practices Paper is still the nly truly reliable frm f cmmunicatin fr physicians and physician practices frm a psychlgical, legal, technlgical & regulatry psitin (2) Access & Ease Due t Electrnic Medical Recrds EMR creates print-n-demand pprtunities fr medical recrds easier access t infrmatin drives print vlumes Release f Infrmatin fr patients t lawyers, emplyers etc.. is n paper Dwntime f electrnic systems due t natural disasters, lss f electricity, netwrking prblems (4) (1) U.S. Printer & MFP Page Vlume Frecast & Analysis, IDC, September 2011 & Hardcpy Device Usage - Effect f Mbility On Print, IDC, May 2011 (2) The Healthcare Paper Prblem: The Facts, The Paperless Prject, 2011 (3) Pew Internet Survey, May 2011 (4) Persistent Paper: The Myth f Ging Paperless, AMIA Annual Sympsium, Nvember 2009

10 Targeting Large Market Opprtunity Ttal addressable market f $1.1 B Auxili targets 2,000 hspitals ut f apprximately 6,700 in ttal acrss US (1) Average mnthly dcuments fr a 250 bed hspital system is rughly 1 millin dcuments--- at $.045 per dcument equates t $45K per mnth r $540K per year $540 K per year x 2,000 hspitals equates t a $1.1 Billin Market 10% f the market = $ 110 M in revenue fr Auxili (200 hspitals) Surce (1) American Hspital Assciatin, 2010 (2) Thmsn Reuters 10/09

11 Auxili Meets the Challenge N Cst ASSESSMENT Analysis Reduces Csts Reduces Paper Vlume Imprves Prcess Efficiencies Key Fcus Areas Desktp benchmark analysis Equipment lease analysis Cntract structure Cst Benefit Assessment Key Fcus Areas Device inventry & frms analysis End user service & supply prcesses Clinical applicatin sftware inventry EMR/EHR readiness state Key Fcus Areas Current use review Stakehlder interviews Management survey Guarantees savings between 10% t 30% Places full-time, n-site teams f print experts Custmizes a defined print strategy

12 Savings & Revenue Win-Win Mdel CASE STUDY: Typical 5 Year Term 3-campus, 1,000 bed hspital system prduces 4M dcuments/mnth at $.043 per dcument = $174,000 Auxili caps cst at $.035 per dcument = 20% reductin thrugh cntinuus prcess imprvement Savings t hspital = $34,000 per mnth r $2M ver five years Revenue t Auxili $112,000 per mnth; $1.34M per year; $6.7M ver five years 20% t 25% average grss margin ver the term

13 Presence in U.S. Hspitals Mre than $70 millin in savings fr U.S. hspitals A Natinal Leader in MPS fr Hspitals Auxili Hspital Custmers (This is a visual representatin. Nt all custmers r affiliates shwn.) Select Large Health System Headquarters Cathlic Health East (PA), Bn Securs Health System (MD), Trinity/St. Alphnsus Health System (ID), Sutter Health (CA) Sharp Health Care (CA), MemrialCare Health System (CA), Barnabas Health (NJ), Jhns Hpkins Health System (MD) 22 states & the District f Clumbia 120 hspitals & 2,000+ affiliates (physician practice grups, fundatins, clinics and medical facilities, health plans and supprt ffices) 250,000+ caregivers served 60,000+ devices serviced 1.3+ billin dcuments managed

14 Market Gal & Grwth Strategy $100M apprximate annual run rate with capture f 10% f $1B MPS market fr hspitals Leverage channel partnerships and alliances with health care cnsultants Gain efficiencies in assessment prcess t drive grwth & prfits Capitalize n integrated netwrk f custmer references Grw sales frce & scale peratinal capabilities with demand

15 Vertical Integratin Expand Service in Existing Clients t Add Value & Partnership in a Grwing Market

16 Infrmatin Technlgy Market Healthcare IT market is frecast t grw 7.4% at $31.3 B by 2017 frm $21.9 B in 2012* Drivers: Gvernment Regulatins & Supprt Maintaining the privacy & security f Patient Health Infrmatin (PHI) HIPAA Final Omnibus Rule (September 2013) HITECH Act EHR Incentive Prgram Meaningful Use Stage 1 & 2 Security Breaches Patient recrds are selling fr $50 n the black market cmpared t $1 fr a lst/stlen credit card Over 7M recrds breached in Over 29M since 2009 Cst hspitals $233/lst recrd higher than any ther industry Internet f Things (Everything) Advancement in medical devices (cnnected t a hspitals netwrk) Increase in mbile device usage - BYOD (bring yur wn device) Electrnic Medical Recrds (EMR) implementatin IT Department Structure Understaffed Lack f expertise Over burdened with infrastructure prjects *Research and Markets Nrth American Healthcare IT Market Reprt

17 Auxili Slutin - IT Advisry Grups Capturing revenue and strategic pprtunities in $6 B Advisry* Market IT Business Prcesses Added vertical integratin f IT Business Prcesses in February 2014 Hired Mark Dressel t launch IT Business Prcess Grup and grw the Infrmatin Security Slutins Grup. Mark is a 25 year veteran f HC Managed IT Services with Accenture, E & Y and Dell/Pert Offerings: Staff augmentatin Desktp supprt EMR implementatin Data analytics Infrmatin life cycle management Prject management Infrmatin Security Slutins Acquisitin f Delphiis in July 2014 Fcused n healthcare security breaches and HIPAA cmpliance HIPAA Omnibus Final Rule (September 2013) requires hspitals t prve a lw risk f (PHI) being cmprmised Delphiis funder Mike Gentile is the leading expert in Security Prgram Develpment and cauthr f The CISO Handbk Offerings: Risk & Security Advisry Managed Security Services Delphiis Risk Manager SaaS Technlgy Slutin Currently serving 2 f the tp 10 Hnr Rll f Best Hspitals *Gartner $6 billin spend n advisry/cnsulting services in all industries (N. America). Expected grwth rate f 4.8% in 2014

18 Opprtunity Build a $10-$15 M annual IT Advisry practice in the next 5 years with 30-35% margins Printer Fleet Security - New service ffering as a value add t MPS r a stand alne security Managed Service cntract Create a vehicle fr pssible HIT acquisitins in future t accelerate grwth and valuatin

19 Grwing Multi-Millin Dllar Cntracts with the Natin s Health Care Leaders Auxili s natinal prtfli f hspital systems are award-winning multi-campus, multi-state heath care rganizatins Industry cnslidatin creates rganic grwth pprtunities fr Auxili

20 Leveraging the Auxili Advantage Health care exclusive Vendr neutral Full time, n-site teams Standardized staff training Prprietary benchmark database Strng referable custmer base Expanding channel partners Prven business mdel Experienced management team Active bard f directrs Recessin prf health care industry Hspitals #1 pririty: Cutting Csts 3 t 5 year cntracts Recurring revenue 20% t 25% margins ver time

21 Management Team Jseph J. Flynn, President and CEO - As cfunder f Auxili, under Flynn s leadership and strategic directin, the cmpany has experienced cntinued and successful grwth since its inceptin in He is an accmplished business leader in the IT, media and market research industries with ver 20 years f internatinal and dmestic business management experience with sme f the wrld s largest glbal cmpanies such as; the Nielsen Crpratin and Advanstar Cmmunicatins. Flynn is fluent in Spanish, French and Prtuguese and is a graduate f the Cathlic University f America in Washingtn DC with a BA in internatinal affairs. Paul Anthny, CFO - Paul Anthny is a Certified Public Accuntant and an expert in financial management, investr relatins, tax, treasury and risk management with nearly 15 years f prfessinal services experience with wrldwide enterprises, publicly traded cmpanies and start-ups. He has wrked fr a number f the largest cmpanies in the wrld including KPMG Peat Marwick LLP and IBM-Access360. Since 2005, Paul has wrked as the lead financial management advisr and analyst fr Auxili, the pineer f managed print services fr the health care industry. He earned a Bachelr f Science in accunting frm Nrthern Illinis University. Simn Vermten, Head f Business Develpment - With 25 years experience in key psitins with a number f glbal cpy/print manufacturers and service cmpanies, including Lexmark Internatinal and IKON, his prfessinal respnsibilities included develping business and print strategy slutins fr clients such as Being, Bank f America, Kaiser Permanente, the US Navy and the US Department f Veterans Affairs. Simn graduated frm the University f Surrey in England, earning a BSc in Business and Htel Management and a BA in Marketing. He als hlds an MBA in Glbal Management and is a certified Six Sigma Prcess Prfessinal.

22 Bard f Directrs Jhn D. Pace Chairman, Frmer President f Service Master Hspital Managed Services William Lenard Frmer CEO f Aramark Crp Max Pll Frmer CEO f Scttsdale Healthcare System and Barnes Jewish Christian ( BJC) Health System Michael Vanderhf Principal, Cambria Capital Edward Case CFO f Chicag Rehabilitatin Institute, frmer CFO Barnes Jewish Christian ( BJC) Health System Michael Jyce Frmer Executive with Allied Signal Crp.

23 Cntact Investr Relatins: Matthew Selinger, SVP MZ Grup MZ Nrth America (949)