Thank you for standing by, and welcome to the ImExHS Limited 1H FY 2021 conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. I would now like to hand the conference over to Dr. Germán Arango, CEO and Co-Founder. Please go ahead. Thank you very much. Good morning, and thank you for joining us for the presentation of ImExHS' first half FY 2021 results. I am Dr. Germán Arango, CEO and Co-Founder of ImExHS. With me on the call is Reena Minhas, our Chief Financial Officer. Turning to slide two of the presentation launched with the ASX this morning. ImExHS is a provider of cloud-based medical imaging software solutions. Our software is fully web and cloud-based, includes innovative artificial intelligence or AI tools, and has a lower cost base than our competitors, which enables us to provide attractive pricing to our customers. Turning to slide three. We are a leading medical imaging software provider in Latin America, and expanding our footprint to larger markets such as the U.S. and Australia. Our software is used by over 2,100 radiologists across 15 countries and is developed by engineers based in Colombia, who now total 38. Turning to the agenda on slide four. I will start with providing you with an overview of our first half FY 2021 results, and then Reena will cover the financials in more detail. I will then address our strategy and the outlook before opening it up for questions. Slide six shows that we achieved good growth across our key financial metrics in the first half of FY 2021, both on a reported and a constant currency basis. Sales revenue of AUD 5.2 million was 15% higher compared to the prior year and up 25% on a constant currency basis. 94% of this revenue was recurring revenue as we continued to focus on growing subscription revenue. Annualized Recurring Revenue or ARR was AUD 12.7 million, up 44% versus PCP and 57% higher on a constant currency basis. Our EBITDA loss of AUD 2.1 million increased by AUD 800,000 compared to last year's number due to investments in sales and marketing and one-off costs related to the RIMAB acquisition. We are investing in sales and marketing to expand into new geographies such as the U.S. and Australia. With a cash balance of AUD 8.3 million, ImExHS is in a strong financial position. Slide seven provides an overview of AQUILA Custom, our customized solution for radiology that is targeted to large customers that require highly complex solutions. Currently, most of our revenue and ARR comes from this product offering. As you can see on this chart, ARR from AQUILA Custom was AUD 10.7 million, up 22% versus PCP, 32% on a constant currency basis, representing over 80% of total ARR. Despite the strong growth, decision-making among larger operators has been slower than normal as a result of the pandemic. However, we are experiencing renewed interest from larger customers and seeing an increase in imaging volumes. Turning to slide eight. Our new product offering, Aquila in the Cloud, continues to generate strong interest and provide small and medium-sized customers with a low-cost medical imaging solution that can be accessed remotely. Launched in May 2020, it is a highly scalable business model that is supported by an extensive and growing network of distributor partners. In fact, 65% of Q2 FY 2021 Aquila in the Cloud sales were generated by our partner network. At 30 June, 2021, Aquila in the Cloud had contributed AUD 2 million in ARR based on 84 deals, including six in the U.S. and four in Australia. Q4 FY 2021 was our strongest sales quarter, with 24 deals showing that sales momentum is growing. Despite the strong interest in the product, implementation has been slower than planned. We are working closely with our partners to make the implementation process more efficient and onboard new customers faster. I will now hand over to Reena Minhas, our Chief Financial Officer, to cover our first half FY 2021 financial results in more detail. Thanks, Germán. I will now run through the FY 2021 financial performance of the company, starting on slide 10. We finished the year with ARR of AUD 12.7 million, which is 44% up versus prior year and 57% higher on a constant currency basis, reflecting continued growth from our customized solution, both volume growth and new customers, and AUD 2 million of ARR from the Aquila in the Cloud product offering. The chart shows annualized recurring revenue, which is currently billing, as well as ARR, which is yet to commence billing, in a lighter shade. Turning to slide 11, the income statement. I will now run through the underlying financial performance of the company, which excludes costs in relation to share-based payment expenses and foreign exchange movements. First half FY 2021 revenue of AUD 5.2 million was up 15% versus PCP and up 25% on a constant currency basis, with recurring revenue contracts accounting for 94% of revenue. The strategic focus on driving subscription revenue growth continued, with recurring revenue maintaining a growing trend. Total expenses were up 16% compared to first half FY 2020, reflecting an increased investment in sales and marketing, expanding operations in Australia and the U.S., and acquisition-related costs of AUD 4.4 million. The group's EBITDA was a loss of AUD 2.1 million, representing a 64% or AUD 0.8 million decline versus PCP. Underlying EBITDA was a loss of AUD 1.4 million versus an EBITDA loss of AUD 0.8 million in the first half of FY 2020. Interest and finance costs on borrowing were down versus PCP, as the prior year results included costs in relation to a related party loan which was repaid in August 2020. Turning to slide 12, the balance sheet. At June 30th, 2021, the company had net assets of AUD 13.7 million. The company ended the half with cash on hand of AUD 8.3 million and total debt of AUD 1 million. Intangible assets increased during the six months, primarily reflecting the continued investment in software development of AUD 630,000 during the period. Borrowings decreased by AUD 600,000 to AUD 1 million due to the repayment of debt during the half. On slide 13, net cash flow used in operating activities increased by AUD 500,000 versus prior year, reflecting the increased investment and one-off acquisition-related costs discussed earlier. Net cash used in investing activities included capitalized development costs of AUD 630,000. Net cash flows from financing activities includes AUD 1 million from proceeds from the exercise of options and was down against PCP due to the prior year including new borrowing facilities. I will now hand back to Germán to take you through the FY 2021 strategy and outlook. Thank you, Reena. Slide 15 shows that the global medical imaging software market is large and growing. The U.S. accounts for around 40% of the global radiology imaging systems and PACS market, valued at greater than $2.8 billion. Florida alone is three times the size of the Colombian market based on GDP estimates. That is why we are targeting overseas markets, particularly the U.S. Aquila in the Cloud is helping us move into new geographies as 85% of Aquila in the Cloud sales are from outside Colombia. Slide 16 outlines the macro trends in the healthcare sector and our strategic priorities. We are well-placed to benefit from industry tailwinds and expect growth to come from our core Latin American markets with our custom offer and multiple verticals, including advanced post-processing, AI, pathology, and ologies. Our standardized Aquila in the Cloud solution aim to small to medium-sized companies. Expanding into new markets in the U.S. and Australia, continuing to innovate our imaging solution software by adding artificial intelligence. Turning to our 2021 product roadmap on slide 17, we have a number of key priorities. We are upgrading AQUILA platform with version 4.0 to provide a broader product offering to potential customers in the U.S. and Australia, and have just finished version 3.5, which improves the user experience. We are working on creating the AQUILA Marketplace, the world's first pathology marketplace. We have finished developing other medical verticals, including a dental imaging and veterinary information system, which we are currently testing. Finally, we will use our rapidly growing image library for training and testing AI algorithms. Turning to slide 18. Developing AI capabilities is a way for ImExHS to remain competitive and to develop its software for the future. Access to a growing radiology database with agreement from our clients gives us fast and powerful access for AI training and beta testing for new releases. The number of stored images that we use to develop AI capabilities has almost doubled to 940 million, reflecting a full year of the Colsubsidio contract. Turning to slide 19. Access to our growing radiology database is one of the reasons why we are buying RIMAB, who provides radiology services to Colsubsidio and a number of our other large customers. On 26 July, 2021, ImExHS announced the acquisition of RIMAB SAS for approximately AUD 8.5 million, less estimated purchase price adjustments. This acquisition strengthens ImExHS customer offering and provides a test bed for developing AI tools. It also removes related party transactions and improves transparency. The EGM to approve the acquisition is scheduled for the end of September 2021, with completion expected in October 2021. Next slide is slide 20, shows a summary of what RIMAB does and some key financial metrics. Slide 21 provides you with a first half FY 2021 trading update for RIMAB. For the six months ended 30 June, 2021, RIMAB reported revenues of AUD 5.3 million and EBITDA of AUD 0.7 million. Subject to approval of acquisition at the EGM, ImExHS Q4 FY 2021 will include RIMAB results from 1 October, 2021. The timing currently depends on ASIC's approval. Excluding any one-offs, management expects RIMAB's Q4 FY 2021 revenue and EBITDA to be above Q4 FY 2020 results of AUD 2 million and AUD 0.3 million respectively, based on strong renewals and new contract wins. Turning to slide 22 and the outlook for 2021. We will continue to focus on expanding into new geographies and converting the strong interest in both our AQUILA Custom and our Aquila in the Cloud offerings. The company is continuing to invest in its capability and growth and is recruiting some senior executives together with an expansion in the numbers of software development and operational engineers, the cost of which will impact the second half. For FY 2021, management expects revenue to be in the range of between AUD 11.5 million and AUD 13 million. The company guided towards achieving monthly run rate EBITDA breakeven by December 2021. Given the continued investment in growth, there is a risk that run rate EBITDA breakeven may not be achieved in 2021. This guidance excludes RIMAB's contribution in Q4 and one-offs. I will now hand back to the operator to open it up for questions. Your first question comes from John Barrick, a private investor. Please go ahead. Hello, Germán. Thank you very much for that, and Reena, thank you very much for those results. Just a couple of things. The Aquila in the Cloud, you say there's delays with implementation. Could you just expand on that a little bit, please? Yes, sure, John. Hello, good morning, and thank you for making the time today. Well, in regards to Aquila in the Cloud, it's a very disruptive business model in our market. It's something that has been fully launched and created by ourselves. After launching the product, we have found some issues essentially from the customer side and from the partner side. We are currently very focused on converting the 84 deals signed to date and recognizing more of the ARR contribution as soon as possible. We will continue to use Aquila in the Cloud to expand into new markets. One of the main, well, we are not so happy with the length of time to convert the Aquila in the Cloud deals into revenue. We are working intensively in close this gap. The fact is that we have found is, as it happens in a very new and disruptive business model, it's not very mature, that there are several things that we have to adjust. The main thing is that we have found that sometimes the customer final users and the partners are not fully prepared for receiving the technology. After the first half of the first year of Aquila in the Cloud, we modified some of the terms and of the processes. After implementing those processes, we have been experiencing an improvement with reduction in the deployment times and in converting the deals in actual revenue. It's a work in progress, and we need to keep controlling and improving the processes, but it's going in the correct direction. Okay. It sounds like you're saying you're finding it needs to be more user-friendly. Is it- Given that your users aren't particularly technologically sophisticated. No, the issues have been not at the moment of using the technology, are happening actually before. What we have found is that sometimes the customers have not fully, for example, installed all the modalities of the site. It's a new site, and the infrastructure is not completed, or the connectivity is not ideal or has not been set up. Most of the issues are happening before implementing the technology. As we install, everything runs smoothly and with no issues. The main issue is between placing the purchase order from the partner and actually installing. Most of the larger proportion of this is coming from issues related to a lack of preparedness from the customer side. We have been correcting this, doing more pre-sales support, more training for our partners, and actually checking in several moments that the infrastructure is prepared for receiving the technology. Right. Thanks. That's very helpful. Presumably that it actually takes personnel time in order for you, in order to do that. Well, the objective of this model is to be as standardized as possible and to be as low touch as possible. In the meantime, we are supporting with our resources and with our own team, all the partners and even the customers in order to solve these initial issues. The plan is that down the road, this business model should be as automatic as possible. One thing, for example, we have done recently is one of the sources of the delay has been that the customer or the partner doesn't have the hardware for routing the images to the cloud. We have developed a virtual DICOM router for sending the images from the customer to the cloud. With these kind of things, we are being as much as possible low touch, and this is the objective of this business model. In the meantime, we have been supporting with our resources, the evolution of this new and, it's fair to say, very mature business model, but already delivering very good results and very promising in terms of the future. Good. Thanks very much for that. I wanted to ask something about your FY 2021 revenue forecast. You're saying AUD 11.5 million-AUD 13 million, but how much of that is ARR? Mostly, we have been procuring to deliver recurring revenue deals. In fact, currently, 94% of our revenues from the first half are coming from recurring revenue deals. Obviously, a good proportion of this revenue is the conversion of contracted deals into actual revenues. On top of that, we have to deliver some new deals, and our preference is if those new deals are, again, recurring revenue deals. Since the inception of the company, there has been some seasonality in which in the last quarters of the year, there are some one-offs, and essentially, it is something that happens as a requirement from the side of the customer, some tenders or public or private tenders that require exclusively to propose a one-off deal. The plan is to, as I said, to bring as much as possible all recurring revenue deals to convert existing contracted and locked-in revenues, which are currently under deployment. It doesn't exclude one of these if there is any public tender or private tender requiring this specific business model. Okay, thanks. You also say, concerning your EBITDA breakeven that had been predicted for December. You say may not be achieved if you exclude the RIMAB contribution. What about if the RIMAB contribution were included? Well, currently, what we have and showed in terms of or reported in terms of the RIMAB EBITDA is that in the first half was AUD 0.7 million. We are not providing guidance on the RIMAB's revenues for the second half currently, but expecting the same growing rate compared to the previous year. It should be probably two times this or a number around this. In that case, there should be enough correction for our EBITDA, in order to be breakeven. I will allow Reena to confirm or to add on top of this, if you can please, Reena. Yes, sure, German. I think just, John, we haven't given guidance on that, so, but we have said that in the first half, the numbers German quoted there. I think, we do expect it to be higher than the FY 2020 EBITDA of AUD 0.3 million for the last quarter, so adding in the contribution from RIMAB. We're basically not providing guidance with RIMAB included, it's subject to an EGM, which we expect at the end of next month. Completion from first of October. When might we get guidance? If the EGM approves, you're waiting for the EGM to approve to give guidance as to whether. I don't think we'll provide guidance on including RIMAB at that point, so it'll probably be, potentially after full year results, but that's TBC. Right. Okay. Okay. That's it from me. Thanks. Thank you very much. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Iain Wilkie of Morgans Financial. Please go ahead. Hi, Germán. Look, just one quick question for you. The 22% growth in ARR from the AQUILA Custom product, there's been no real announcement about that over the last 6 - 12 months. Is this growth just based on some smaller contracts dropping through below materiality thresholds, or is this basically just growth due to study volumes and existing contracts being rolled and renegotiated higher? Thanks. Yeah. Hello, Iain. Again, thank you for making the time this morning. Well, the 22% increase versus PCP of the ARR coming from AQUILA Custom has different sources. One of the sources is the increase in the volume of studies with a significant contribution. There is a 50% increase in the volume of studies of the existing customers versus PCP. Some of the contracts we have in AQUILA Custom front are fixed rates, fixed monthly rates, and some other are variable rates. The effect is obviously increasing the revenues from the variable fees or monthly fees in the AQUILA Custom front. There is also some small wins from the AQUILA Custom front below the threshold of materiality. Currently, we have 73 customers, which represents an increase of 30% versus PCP in the AQUILA Custom front. It's both new customers, several new customers, 30% more customers, but below the threshold of materiality and an increase of 50% of the volume of studies in the AQUILA Custom front. This is obviously only causing an effect in the proportion of contracts in which we have variable revenues. It's also important to say that this business model in terms of cost and currency ratios is representing a 32% increase versus PCP. Okay, great. Thank you. I think before you said that 85% of new contracts, I guess, are outside of Colombia. Is this across the whole group or is this mainly for the Aquila in the Cloud model of through the AQUILA Custom? The growth that you're seeing now, is that mainly in Colombia or is that included in that 85%? The Aquila in the Cloud has been much more effective for the international strategy. Given it's standardized and it's low touch. Everything is easier in terms of the process related to Aquila in the Cloud, selling, installing, training. That's why most of the international sales are coming through Aquila in the Cloud business model. We have done some custom in some of the countries where we already have a strong presence, like Ecuador and Peru. Otherwise, across Latin America, U.S. and Australia, the new contracts we have delivered are for Aquila in the Cloud. The plan is to keep the geographical expansion using Aquila in the Cloud to expand the footprint and to have install base and to have resources in general geographies. Behind Aquila in the Cloud should go AQUILA Custom, growing in the international scenario, with the support Aquila in the Cloud is doing in advance. This is part of our strategy and is going as we expected. Okay. The idea is Aquila in the Cloud as a land and expand. Potentially upsell into a custom product as it grows. That's correct. Okay, great. Just probably one last one from me. Just an update on progression into Brazilian markets, if you have any update there. Sure. Yeah, well, the Brazilian market is the largest from LATAM, as you're aware. We have put several efforts in going into that market. The fact is that the pandemic has hit severely this country and affecting the whole commercial environment. What we have done at this point is that we are working with partners. Well, we're working essentially with partners currently to soon installing proofs of concept in some of their sites, and progress into having footprint on that geography. A few things in parallel we have done is that we have had presence in some virtual shows. MEDICA, which is one of the largest medical devices shows in the world, normally taking place in Düsseldorf, Germany, has been this year done in Brazil, but it was originally a show that will take place in person, but they decided to make it virtual. We have done a virtual presence in that show. Soon there is another one. The strategy for Brazil is set up. We have plans. We have been getting distributors and signing partners. Soon we expect to have proofs of concept. The fact is that has been delayed, essentially by the pandemic effects. Okay. Perfect. Thank you very much. Look, I'll just throw one last one before I go. Obviously the currency is, fair to say, a bit of headwind as far as the results go. Is there any plan to increase any hedging across the results, just given the hypersensitivity, the Colombian peso is quite pronounced? Aside from growing unit areas like the U.S. where you're exposed to U.S. dollars, is there any instruments that you guys are looking to deploy in that regard? Yes, Iain. In fact, one of the key advantages behind the international strategy of Aquila in the Cloud is that we are charging in U.S. dollars. Everything outside Colombia, even it is delivered in the Latin American region, coming from Aquila in the Cloud, we are charging in U.S. dollars. In the U.S. and in Australian dollars. In the way we are progressing with the trend we have, delivering mostly new deals outside Colombia, we are in some way correcting or fixing the issues from the exchange rate. The plan is that, in the near future, most of the deals have to keep coming, even not only Aquila in the Cloud, and as I said, most of the AQUILA Custom have to come from different countries to Colombia. In that way, the gradual replacement of the currency is going to go in the direction of the U.S. dollars. Okay. With the inclusion of RIMAB in there, presumably that's all Colombian peso? Yes. In the case of RIMAB, it's Colombian pesos. Yeah. Okay. What proportion of your revenues are in Colombian peso terms? Reena, can you please give that detail? I would say- Across ImExHS in general, currently. Probably around, I want to say 80%, Germán. Is that? Yep. I think so, yep. Yeah. Okay, cool. That's all for me, guys. Thank you very much. Thank you, Iain. Thank you. Your next question comes from Andrew Lilley, a private investor. Please go ahead. Hi, Germán. Just a couple of questions regarding the RIMAB acquisition. If it's not going to be break even on EBITDA, on the pro forma, just wondering what the point of the acquisition is then for the current ImExHS shareholders. Thank you. Andrew. Well, thank you. The main reasons why the acquisition has been done are, well, a few. Essentially, there is some strategic reasons. We are bringing access to ImExHS, a significant amount of data for the purpose of the AI software development. Secondly, we are solving some issues to related parties, as we have mentioned, in order to have a more transparent operation of the company. Lately, we think that there is a significant strategic reason behind this, which is that with the penetration of the AI in the imaging and radiology practice, and in general in the medical imaging practice, we expect in the future that there is going to be less limits between the business of the software for medical imaging and the actual medical practice. We are taking a position in advance, which should benefit our strategy. As the penetration of the technology in the medical practice progresses, to have control over both sides of the value chain will deliver significant advantages. In the meantime, it is the ideal test bed for all of our probes, it is the ideal way to access medical data for training AI algorithms. Again, it is solving the related party issues. We are not saying that this will not deliver EBITDA breakeven with inclusion of RIMAB. We're just saying that we are not providing guidance on that regard. Thanks, Germán. Then just my second question. Looking at the sort of market's reaction since this RIMAB acquisition was announced, and you sort of seen the stock price is down best part of 20% at times. I was just wondering, is the board looking to renegotiate the terms of this acquisition in terms of the cash paid out and the 6.6x EBITDA multiple looking quite rich for a private Colombian-based business. Thanks. Hi, my name's Doug Flynn. Hi, Doug Flynn. Perhaps if I could pick that question up. No, we're not looking to renegotiate. I'm not quite sure whether you're aware of the prices that are being paid generally for radiology businesses. Certainly in the Australian market, I know we're not comparing like for like, but they have been in the range of 12x to 16x. The most recent one was the sale of Everlight Radiology by Intermediate Capital Group, which was north of 16x. That's not the direct comparison, but the 6.6x is a multiple of last year's numbers, and we're seeing quite strong growth within that business in 2021. By the time we get to there, it won't be 6.6x anyway. That's the first point I would make. Secondly, these two companies were significantly intertwined. In my view, this is the right thing to do from a governance perspective. It's the right thing to do financially. We are expecting returns on this business to be very strong over the next several years, and it brings a number of very significant strategic advantages to the business. The fact that this business was not included when the company was first listed, in my view, was something that should have occurred from the get-go. These two businesses either need to be separated completely or brought together. To separate completely process was complicated and, in my view, probably not sustainable. Bringing them together, we believe we're going to have a much stronger business than doing anything else. Doing nothing we didn't believe was the right answer. No, we're not renegotiating. Two, occasionally shareholders get things wrong, and we'd like to demonstrate that over the course of the next year. Thanks, Doug Flynn. Considering I was the original director that helped Germán put the deal together, yeah, I'm familiar with the whole history, so I appreciate that refreshment on the story. Very good. Thank you. There are no further questions at this time. I'll now hand back to Dr. Arango for closing remarks. Well, thank you for taking the time to join us today, and enjoy the rest of your day. That does conclude our conference for today. Thank you for participating. You may now disconnect.