Q1-21 Presentation - Convene
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Q1-21 Presentation
Convene | Q1-21 Presentation 2 Presenters
Agenda • Introduction to Convene • FY21 Status • Growth and strategic initiatives • Financials • Summary
Convene | Q1-21 Presentation 4
Convene Group
2020 revenue of NOKm ~425 2020 EBITDA of NOKm ~200 ~10% annual revenue growth
2020-2023
v
~14 million transactions ~900,000 mobile payment ~12% annual growth in number
annually transactions in 2020 of transactions 2016-2019
v
~80% market share in GP Established in 7 industry Significant potential in new
vertical in Norway verticals markets
Convene | Q1-21 Presentation 5
Our specialized solutions for payment processing are
designed to meet the unique needs of healthcare
industries
Payment Mobile and online Transaction Revenue cycle
Integration Financing
equipment payment administration management
Terminals Direct payment Direct End-to-end Efficient and Provision of
accepting chip, through integration with administration ethical financing-as-a-
card, cash, and automated link EHR-systems for of payment collection of service without
invoice printing sent to mobile efficient work- services outstanding balance sheet
or accessed via flows claims risk
platform
Convene technology platform
Convene | Q1-21 Presentation 6
A clear and differentiated value proposition for our clients
Agile and scalable platform capable of Increased time for revenue
xxx
adapting to changes in customer needs generating activities
Reduced administrative costs and
Secure ethical and
need for back-office staff,
humane debt collection
eliminating human errors
Optimized consumer experience and Increased revenue through automated
customer service collection and financing services
Convene | Q1-21 Presentation 7
Company history and key milestones Financing-as-a-Service
20% 100%
100%
Rebranding 2021
“Just-walk-
2020
home”
Mobile
initiative
payment
Continued introduced
New markets expansion
and through
acquisitions acquisitions
First
terminal sold Expansion 2020
Melin Medical Melin Collection
is established established into new
verticals
2019
2019
2018
2013 2017
2010 2010
Convene | Q1-21 Presentation 8
FaaS is the next catalyst for growth
Growth phase I: Growth phase II: Growth phase III:
Equipment roll-out Revenue Cycle Management Financing-as-a-service
Key growth
# Units # billable transactions # total transactions
de-nominator
New
Product
launch
M&A
M&A
424
New 400
New Product 8%
Product launch 357 13% 9%
launch 11%
12% 9% 13%
10%
247
2%
14%
188
2%
151 16% 81% 78%
3% 78%
126 78%
0% 20%
21% 84%
76
24% 82%
79% 78%
0% 15% 24 9%
0 2 76%
0% 24% 65% 26%
0% 61% 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
ARR 2 : - 85% 91% 100% 100% 97% 98% 98% 88% 87% 92% 91%
(1) Revenue from Gordion is categorized as Other Other Rental-based revenue Transaction-based revenue
(2) ARR = rental-based + transaction-based revenue
Agenda • Introduction to Convene • FY21 Status • Growth and strategic initiatives • Financials • Summary
Convene | Q1-21 Presentation 10
Status Q1-21
DEVELOPMENT DURING Q1-21
Solutions in operation by industry
• Strong results during the quarter, driven by solid underlying top line Prm. care Sec. care Vet. care Fitness
development 4.0k
• Continued growth in online consultations and roll out of mobile 3.5k
payment solution. The change in patient behaviour was initially driven 3.0k
by the pandemic, but we expect a lasting change compared to pre
2.5k
Covid levels.
2.0k
• Stable development in number of installed solutions in the core health
1.5k
markets, still churn within Fitness.
1.0k
• Status strategic growth projects: 0.5k
o Dental Market: Pilot phase for Opus Dental integration. New 0.0k
integration with Anita systems.
Q316
Q117
Q317
Q118
Q318
Q119
Q319
Q120
Q320
Q121
o Leap / Faas: Substantial progress with testing and securing
functionality of the platform
Churn rate in % Q1 2021 Q4 2020 Q3 2020 Q2 2020
o Sweden: Slower progress than expected, partly related to Covid.
Working diligently with partners resolve this.
Quarterly churn rate in % 2.0% 1.8% 1.4% 1.6%Covid 19 update
• Operations are well adapted to Covid-19 environment
• Majority of organization is still working from home
• Driver for roll out of mobile payment solutions and online
consultations
• Gordion: Furlough level in 2021 is 20%
• Stable business and operations during Covid-19
• Gradual ease of restrictions and re-opening of the society
• Fitness centers local close-down during Q1. Most cities, including
Oslo, have reopened fitness centers in the end of May
Convene | Q1-21 Presentation 11Agenda • Introduction to Convene • FY21 Status • Growth and strategic initiatives • Financials • Summary
Convene | Q1-21 Presentation 13
Convene is a market leader in Norway
Market share per vertical Norway (%) 2021 (1)
Market development during Q1
100%
17% Other / No solution • Underlying good results during
90% Covid-19 in our Norwegian
80%
markets.
Svea
70% 61% • Stable development in number of
67% installed solutions in our core
60% 78%
Microlog
health markets, still churn
93% within Fitness.
50%
40% 80% • Delivered COVID patient check-lists
PayEx
to Unilabs Norway on terminal.
30% 3%
20% 39% HelseRespons
29%
10% 22%
3%
4% Convene
0%
GPs Specialists Dentists Fitness Vets
# of clinics
~1,700 ~1,700 ~1,900 ~1,200 ~1,500
with EHRs
(1) Market share of other competitors unknown.Convene | Q1-21 Presentation 14
Convene’s service offering is unmatched in the Nordic markets
Service overview of Convene and competitors
Services
EHR-integration
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Terminals
✓ ✓ ✓ ✓ ✓
Queue mgmt.
✓
Check-in mgmt.
✓ ✓ ✓
Cash payment
✓
Card payment
✓ ✓ ✓ ✓ ✓ ✓ Medical professionals
Mobile payment
✓ ✓ ✓ ✓ ✓
Invoicing
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Debt collection
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Dentists
Reporting
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Remittance
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Financing ✓ ✓ ✓ ✓ ✓ ✓
Debtor portal
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Other verticals
Creditor portal
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
# EHR integr. 23 4 1 1 1 1 1 1 1
Sectors
MarketsConvene | Q1-21 Presentation 15
Well positioned to increase market share in the dentist market
The Scandinavian dentist market Installed and sold solutions in the Norwegian dentist market
700
• 6,000 dental clinics across Scandinavia
• Major EHR provider is Opus Dental with a market share of 600
~95% in Norway and ~45% in Sweden. 500
• High fees and limited acceptance for credit card payments
400
• A large share of the population in all countries visit the
dentist annually 300
• Most dental care covered by patients in Norway and
200
Sweden (exception underaged patients). 40% of the cost
covered for all consumers in Denmark 100
• High fees favor the potential for consumer financing 0
2014 2015 2016 2017 2018 2019 2020 Q1 2021
Status Convene Market dynamics
Norway Sweden Denmark
• Opus Dental:
o Existing integration for invoicing solutions Clinics ~2,200 ~2,500 ~1,300
o Pilot phase for terminal integration v
• Anita Systems:
Market share 29% 1% n.a
o New EHR-system integration in Norway
• Substantial future potential driven by FaaS / patient v
financing project together with BraBank Market
players
v
Average NOK 850- DKK 300-
SEK 800-30,000
payment 30,000 30,000
vConvene | Q1-21 Presentation 16
Sweden
Status Convene
Market
GPs and Specialists
• Integration with CGM J4 (Gothenburg), Metodika and Webdoc.
650 GPs and specialists and
• Major potential in Stockholm and Skåne regions for GPs 2.500 dentist clinics
o Integration agreements in place with CGM for TakeCare (Stockholm) and PMO (Skåne) since
2017/2018. In general, fewer but larger
o Payment API in TakeCare has been finalized (feature not released to production) clinics compared to Norway
o Approval from regions needed to get access to the healthcare platforms and implement new Regions (län) are the decision
solutions and features (incl. payment solutions). This is delayed, partly due to Covid maker and owner of EHR
o Working together with our partners to resolve this systems (not the clinics as
o Region has a clear ambition and strategy for digitalization and automation of healthcare services in Norway)
• Backlog of signed contracts: ~100 GP and specialists (waiting for integration) Convene are established in GP,
Hospital and Specialist, Dentist,
Dental market Physiotherapist
• Integration agreement in place with Opus Dental.
and Chiropractors.
o Roll out in Swedish market planned after successful launch in Norway (some development
needed to amend integration to the Swedish market)
• Backlog of signed contracts: ~50 dentist clinics (waiting for integration)Convene | Q1-21 Presentation 17
ConvenePay
FAST. SIMPLE. FLEXIBLE.
With ConvenePay you can easily pay for the service directly from your mobile phone, tablet or PC.
• Stable and high invoice share over time.
• Installed on private COVID test-clinics.
• Mobile payment transactions five months into the fiscal year are already on 2020 level.
MOBILE PAYMENT TRANSACTIONS 2020 2021
250,000
200,000
1.750.000 +
Transactions
150,000
100,000
50,000
850 +
0 CompaniesConvene | Q1-21 Presentation 18
When expanding the service offering to include
Financing-as-a-Service, Convene will introduce a fee
model generating revenue from all transactions
BUSINESS PLAN INITIATIVES
Traditional transactions split: Instant vs. late payers Revenue share target of transactions going forward
“Pay later” consumers
20%
~14 million
transactions 100%
80%
“Instant pay” consumersConvene | Q1-21 Presentation 19
Convene | Q1-21 Presentation 20
With FaaS, service providers are guaranteed instant settlement at a lower total cost
Current resolution rate after invoice issuance Clear value proposition for service providers
Resolution rate (%)
95%
90%
85%
80%
Only one, full-service counter party
75%
70%
65%
60%
Instant settlement of all claims
55% 24% of outstanding invoice claims are paid
50% within 10 days, 63% are paid within 1 month.
45%
40%
5% of all invoice claims are never paid
No loss on outstanding claims
35%
30%
25%
20%
Guaranteed financing for service consumers
15%
10%
5%
0%
0 50 100 150 200 250 300 350
Days from invoice issuanceFaas Status
• Substantial progress with project. Pilot period has stared.
• Platform is live on production environment and is currently
undergoing testing and functional evaluation.
• We are handling transactions and producing invoices on weekly
basis, and working with securing the moneyflow through the
platform between all parties.
• Alignment and training of internal organization is in place and
dedicated resources from the internal organization has been
dedicated to the new platform.
• The next phase is to onboard a larger set of customers.
Convene | Q1-21 Presentation 21Agenda • Introduction to Convene • FY21 Status • Growth and strategic initiatives • Financials • Summary
Convene | Q1-21 Presentation 23
Financial highlights
DEVELOPMENT KEY FIGURES AND KPI’S (PRO FORMA)
Income statement (in MNOK) and key KPIs Q1 2021 Q1 2020 2020 Comments for the quarter
Revenue (excl accrued) 106.5 106.8 427.6
Accrued revenue -3.4 2.5 -3.6 • Good start to 2021, mainly driven by stable top line (excl.
Total revenue 103.1 109.3 424.0 accrued) in despite of negative impacts from reduced debt
collection fees.
Cost of materials -19.0 -18.8 -77.0
• Strong underlying revenue growth is driven by invoice fees and
Personnel expenses -22.2 -22.4 -99.7 increased volume of payments related to historic claims with
the old and higher fee levels.
Other operating expenses -12.2 -12.4 -49.9
• Stable cost levels during the quarter compared to last year.
Operating expenses -53.4 -53.6 -226.7
Positive contribution from increased electronic distribution of
EBITDA 49.7 55.7 197.3 postage is counteracted by higher COGS in Gordion (higher
sales volumes).
EBITDA excl. accrued revenue 53.1 53.2 201.0
• Covid-19: Prolonged lock down in large parts of Norway. Shift
KPIs from physical to online consultation continued during the
quarter driven by the pandemic. Fitness centres in major cities
EBITDA margin 48.2% 51.0% 46.5% were closed down during the period. Society has gradually
opened up during the last weeks and fitness centres in Oslo
EBITDA margin (excl. accrued) 49.8% 49.8% 47.0%
were allowed to reopen on 26 May.
Solutions in operation 3,336 3,401 3,355
59 64%
53 53
46 45 47 43%
41 41 42 41%
38 40
27 20%
Quarterly pro forma EBITDA
(excl. accrued) -4%
0%
-6%
-11%
Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21Convene | Q1-21 Presentation 24
Top line development
DEVELOPMENT REVENUES PER SEGMENT (AS REPORTED)
NOK million Q1 2021 Q1 2020 delta 2020 Comments
Revenue from terminals 11 10 0 42
• Invoice fee: Price increase with 17% in in the
Revenue from invoicing 40 32 8 121 end of June 20. In addition, positive
contribution from an increase in online
Revenue from reminder fees 4 7 -3 28 consultations and accelerated role out of
mobile pay solutions.
Revenue from debt collection 30 37 -8 155
• Final reminder fees: 50% reduction in fee
Revenue from legal claims 3 3 0 12 levels.
Other revenue 10 9 0 34 • Debt collection fees: Reduction is related to
reduced fee levels. Higher than expected
Gordion 9 7 2 36 revenue related to historic claims with the old
and higher fee levels.
Total revenue (excl. accrued) 107 107 -0 428
• Gordion: Solid first quarter as we see
Accrued revenue -3 8 -11 -4 increased activity levels in several markets.
Car parking was especially strong in the first
Total revenue 103 115 -11 424 quarter.
Growth year-over-year (excl. accrued revenue) -0.3% 6.0% n/a 7.1%
Growth year-over-year (reported figures) -10.0% 14.3% n/a 4.9%Convene | Q1-21 Presentation 25
Cash Flow
CASH FLOW Q1-21 (AS REPORTED)
NOK thousands Q1 2021 Q1 2020 2020
Profit/loss before income taxes -14,447 -7,752 -71,075
Income tax payable -3,791 -815 -815
Depreciation and amortization 35,490 34,293 138,698
Interest expense lease liabilities 367 395 1,575
Changes in accounts receivable and payable -5,264 -6,084 -2,891
Change in accruals, other short-term assets and
12,143 -5,006 12,759
liabilities
Net cash flow from operating activities 24,498 15,031 78,249
Payments non-current assets -10,826 -13,662 -46,371
Proceeds from disposal of non-current assets – – 175
Net cash flow from investment activities -10,826 -13,662 -46,196
Proceeds from borrowings – – –
Repayment of lease liabilities -2,801 -2,597 -11,529
Net cash flow from financing activities -2,801 -2,597 -11,529
Net change in cash and cash equivalents 10,871 -1,228 20,524
Opening cash balance 65,348 44,824 44,824
Closing cash balance 76,220 43,596 65,348Convene | Q1-21 Presentation 26
2020-2021 EBITDA bridge
2020-2021E PRO FORMA EBITDA, EXCL. ACCRUED IN MNOK
201
150 -180
-85 -85
-10
-85
2020 EBITDA Reduction in Change in Invoice Fee Provision FTE reduction FaaS Growth in Mobile Pay Organic 2021E EBITDA
debt and legal copayment model and debt collection Sweden growth and
collection fees structure administration other
feeAgenda • Introduction to Convene • FY21 Status • Growth and strategic initiatives • Financials • Summary
Summary
• Strong results during the quarter
• Continued growth in online consultations and roll
out of mobile payment solutions.
• Stable development in number of installed
solutions in the core health markets.
• Good progress on Dental project and FaaS, slower
progress then expected in Sweden.
Convene | Q1-21 Presentation 28You can also read
