ONEVIEW HEALTHCARE PLC

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1 ONEVIEW HEALTHCARE PLC BUY 2017 Result Green Shoots Emerging Health Care Equipment & Services / Health Care Technology 28 February 2018 COMPANY UPDATE Ticker ONE Stock Price $1.900 Target Price $3.04 Forecast Capital Return 60.0% Forecast Dividend Yield 0.0% Estimated Total Return - 12 Mth Forward 60.0% Company market data Market Cap. $138.5m Free Float (%) 74.5 Enterprise Value $93.8m 52 Week Range $ $6.10 Shares Out. 72.9m Avg. Daily Value $0.1m Estimates changes 2017a 2018e 2019e 2020e Core NPAT - old (26.5) (17.9) (11.4) (4.5) Core NPAT - new (25.9) (17.8) (11.9) (4.6) % Change (2.4) (0.6) Core EPS dil. ( ) - old (43.1) (24.6) (15.6) (6.1) Core EPS dil. ( ) - new (42.1) (24.4) (16.3) (6.4) % Change (2.4) (0.6) DPS ( ) - old DPS ( ) - new % Change All figures are in Euro unless otherwise specified. Share price performance Oneview Healthcare PLC vs. AS52 (rebased index) EVENT FY17 results broadly as expected. Given that ONE had updated the market on its 2017 financial performance in Nov-17 and Jan-18, the result was largely in line with our expectations. As a result, our primary focus was the beds pipeline and outlook for the business which we cover below. KEY TAKEAWAYS Green shoots are emerging. ONE enters 2018 in a much stronger position than 12 months ago as: (1) the new Android solution significantly improves the value proposition for customers through lower hardware costs; (2) regulatory inertia in the USA has dissipated as hospital procurement teams return to business-as-usual; and (3) brand awareness is building. The next 18 months are shaping as a crucial period as ONE looks to capitalise on increased momentum in RFP activity and accelerate sales of Inpatient. Senior Living, Connect and Patient Pathways will also all contribute to the revenue mix for the first time in 2018 and help fast track ONE s journey to breakeven. We also expect adoption of the latter two products to benefit from the absence of upfront hardware costs, which have historically been a source of friction for Inpatient. INVESTMENT VIEW Our target price of $3.04 and BUY rating remains unchanged as the outlook provided by management was broadly consistent with our estimates published in our initiation of coverage note on 12 February Our investment thesis remains the same as we believe there will be strong market adoption of interactive patient care solutions by virtue of the technology s proven benefits across improved health outcomes, cost efficiency and patient experience. ONE is well-placed to capitalise on this increased adoption as its product solution is regarded as best-in-class. Y/E Dec a 2018e 2019e 2020e Analyst Brendon Kelly, CFA Brendon.Kelly@moelisaustralia.com EBITDA (23.3) (17.5) (11.1) (3.6) EV/EBITDA nm nm nm nm Core NPAT (25.9) (17.8) (11.9) (4.6) Core EPS (Diluted) ( ) (42.1) (24.4) (16.3) (6.4) P/E nm nm nm nm EPS growth nm nm nm nm DPS ( ) Yield 0.0% 0.0% 0.0% 0.0% DPS growth Dividend Payout Ratio 0.0% 0.0% 0.0% 0.0% All figures are in Euro. MOELIS AUSTRALIA SECURITIES PTY LTD AFS LICENCE

2 KEY POINTS Inpatient Management expect the majority of currently contracted beds to be installed by year end. Given that management have guided for a 9 month turnaround from contract signing to deployment, this implies that all 9,903 contract beds will installed by December We assume slightly lower deployment at 9,352 to account for the fact that there has been a longer conversion period historically (although noting that this was primarily due to customers not being ready for deployment). ONE s first rollout of the Android solution went live into BJC in the USA in December 2017 and is expected to reduce upfront capital costs by 30-50% for customers. Management acknowledged that ONE was the most expensive hardware solution until now. We expect this to be the key catalyst for new contract wins going forward. We are also encouraged by the acceleration in new contract wins in the latter half of 2017 with this momentum also carrying forward into January Figure 1: Contracted Beds beds 12,000 10,000 8,000 6,000 4,000 2,000 - momentum building from the latter half of ,292 1,998 3,291 1,294 1,671 Mar-16 (IPO) We assume almost all of ONE's contracted beds will be installed by Dec-18 4,962 5,181 2,515 6,812 3,812 2,666 3,000 8,998 5,416 9,903 6,047 3,582 3,856 6,202 9,352 Jun-16 Dec-16 Jun-17 Dec-17 Jan-18 Jun-18e Dec-18e Installed Beds Contracted But Not Installed Source: Company, Moelis Analysis 2

3 ONE s RFP pipeline jumped by ~2,200 beds in January 2018 which bodes well for new contract wins in the upcoming year. Figure 2: Beds Pipeline beds 20,000 significant pick up in RFP activity in Jan-18 17,099 17,913 19,715 16,000 12,214 12,000 10,275 11,466 12,990 15,207 8,000 4,000-7,404 7,704 7,439 5,508 4,510 5,633 1,896 2,836 4,923 4,508 Mar-16 (IPO) Jun-16 Dec-16 Jun-17 Dec-17 Jan-18 Contract Negotiations RFP Submitted Source: Company, Moelis Analysis Senior Living Inaugural deployment at Thomas Holt in Sydney is scheduled to go live in Q ONE is now in advanced discussions with major senior living providers in the US and Australia with ~3,000 beds in the RFP pipeline. Connect Successful trial at Sydney Children s Hospital has been completed with hospital wide deployment commencing this week. The first USA customer, St. Jude Children's Research Hospital, goes live in April Over the next 12 months, approximately 100,000 unique patients will be given the opportunity to use Connect. While price discovery is still ongoing, if we assume US$5-10 per download, this could represent a revenue opportunity of US$0.5m to US$1.0m in We conservatively assume a 300k revenue contribution from Connect in Patient Pathways R&D agreement signed in 2H17. The prostate solution will go live at Oxford in 1H18 with other cancer pathways to be developed thereafter. Costs Employee headcount expected to increase slightly from 162 at Dec-17 to 175 by Dec-18 to support ongoing development. 3

4 Oneview Healthcare PLC (ONE) Market Cap: $139m Last Price: $1.900 Target Price: $3.04 Buy Y/E Dec 31 Profit and Loss ( m) 2016a 2017a 2018e 2019e 2020e Valuation Summary Revenue Current Mkt Capitalisation Growth 287.7% (30.1%) 248.2% 47.9% 34.6% Shares on Issue 72.9 EBITDA (18.1) (23.3) (17.5) (11.1) (3.6) Last Price Growth 114.9% 28.8% (25.1%) (36.4%) (67.7%) Dep'n & Amort (0.5) (0.7) (0.8) (1.0) (1.1) 12 Mth Target Price 3.04 EBIT (18.6) (24.1) (18.3) (12.1) (4.7) Total Estimated 12 Mth Return 60.0% Growth 93.4% 29.2% (23.9%) (33.7%) (61.0%) 12 Mth Fwd Capital Return 60.0% Net Interest Expense 2.6 (1.7) Mth Fwd Dividend Yield 0.0% Profit Before Tax (16.0) (25.8) (17.8) (11.9) (4.6) Tax 0.0 (0.1) Valuation Ratios 2016a 2017a 2018e 2019e 2020e Tax Rate (%) (0.2%) (0.4%) 0.0% 0.0% 0.0% EPS (Underlying) ( ) (30.2) (42.1) (24.4) (16.3) (6.4) Minorities Growth (3.9%) 39.3% (41.9%) (33.1%) (61.0%) NPAT (Underlying) (16.0) (25.9) (17.8) (11.9) (4.6) Growth 63.6% 61.6% (31.2%) (33.1%) (61.0%) P/E (x) nm nm nm nm nm One-Off Items Small Industrials (ex Fin's) 0.0x 20.5x 18.8x 16.8x 14.9x NPAT (Reported) (16.0) (25.9) (17.8) (11.9) (4.6) Premium / (Discount) nm nm nm nm nm EPS (Underlying) ( ) (30.2) (42.1) (24.4) (16.3) (6.4) EV/EBITDA (x) nm nm nm nm nm Growth (3.9%) 39.3% (41.9%) (33.1%) (61.0%) Small Industrials (ex Fin's) 0.0x 12.6x 11.4x 10.4x 9.3x Premium / (Discount) nm nm nm nm nm Balance Sheet ( m) 2016a 2017a 2018e 2019e 2020e Cash DPS ( ) Inventory Growth Current Receivables Yield (%) 0.0% 0.0% 0.0% 0.0% 0.0% PPE Payout Ratio (%) 0.0% 0.0% 0.0% 0.0% 0.0% Intangibles Franking (%) 100.0% 100.0% 100.0% 100.0% 100.0% Other Total Assets NTA Current Payables NTA/Share ( ) ST Debt LT Debt Performance Ratios 2016a 2017a 2018e 2019e 2020e Provisions ROA (38.9%)m (73.2%) (72.6%) (68.3%) (24.4%) Other ROE (44.7%) (85.7%) (117.2%) (192.4%) (103.7%) Total Liabilities ROIC 4,499.8% (2,016.4% (666.5%) ) ) ) Net Assets Equity & Reserves Net Debt (Cash) ( m) (35.1) (28.6) (14.1) (5.2) (4.0) Retained Profits (33.3) (60.5) (78.3) (90.2) (94.9) Net Debt/EBITDA (x) 0.0x 0.0x 0.0x 0.0x 0.0x Shareholders' Equity ND/(ND + Equity) (%) (4,577.8% (552.1%) (847.4%) ) ) ) Minorities Interest Cover (x) (7.1x) 13.9x (36.6x) (52.5x) (50.6x) Total Equity Working Capital (0.5) (0.3) (1.2) (1.8) (2.3) Cashflow ( m) 2016a 2017a 2018e 2019e 2020e Working Capital/Sales (%) (5.4%) (4.4%) (5.7%) (5.4%) (5.3%) EBITDA (18.1) (23.3) (17.5) (11.1) (3.6) Net Interest Cash Flow Metrics 2016a 2017a 2018e 2019e 2020e Tax 0.0 (0.1) FCF/Share ( ) (0.43) (0.43) (0.25) (0.17) (0.06) in Working Capital (1.5) (0.2) Price/FCPS (x) nm nm nm nm nm Other 0.1 (0.1) Free Cash Flow Yield (%) (32.6%) (32.8%) (19.1%) (12.9%) (4.6%) Operating Cash Flow (19.6) (23.7) (16.0) (10.4) (3.0) Gross Cash Conversion 94.9% 92.2% 75.6% 67.1% 0.4% Growth 204.7% 21.3% (32.5%) (35.3%) (71.5%) Capex/Sales (%) (10.6%) (19.5%) (6.0%) (4.2%) (2.8%) Capex (1.0) (1.2) (1.3) (1.4) (1.2) Capex/Depreciation (x) 0.0x 0.0x 0.0x 0.0x 0.0x Acquisitions Divestments Margins 2016a 2017a 2018e 2019e 2020e Other (0.3) EBITDA (200.7%) (369.8%) (79.5%) (34.2%) (8.2%) Investing Cash Flow (1.2) (1.2) (1.3) (1.4) (1.2) EBIT (206.3%) (381.2%) (83.3%) (37.4%) (10.8%) Equity Raised NPAT (177.5%) (410.3%) (81.1%) (36.6%) (10.6%) Dividends Paid Net Borrowings Valuation Methodology Other (2.4) WACC (%) 13.4% Financing Cash Flow Discounted Cash Flow Valuation 2.68 FX / Non Cash Items Sum-of-the-Parts Valuation Change in Cash 17.5 (7.1) (17.3) (11.7) (4.2) Average Valuation Mth Target Price 3.04 Free Cash Flow (20.5) (25.0) (17.3) (11.7) (4.2) Source: Company data, IRESS, Moelis Australia research estimates 28-Feb-18 4

5 RESEARCH & SALES RESPONSIBILTIES Equities Equities Research Simon Scott Head of Equities Real Estate Elliot Leahey Operations Manager Hamish Perks Sarah Sagvand Desk Assistant Edward Day Jacqui Irons Corporate Broking Ronan Barratt Industrials Equities Sales & Trading Sean Kiriwan John Garrett Sarah Mann Angus Murnaghan Brendon Kelly, CFA Ian McKenzie Keiran Hoare Bryan Johnson Andrew Harvey US Distribution Partner - Weeden & Co. Sam Clark Mitchell Hewson - Head of Execution Matthew McCloghry Aaron Payne - Real Estate mmccloghry@weedenco.com firstname.lastname@moelisaustralia.com DISCLOSURE APPENDIX ANALYST CERTIFICATION The Analyst, Brendon Kelly, CFA, responsible for the content of this research report, in whole or in part, certifies that with respect to the companies or securities that the individual analyses, that (1) the views expressed in this report accurately reflect his or her personal views on the subject companies and securities, and (2) no part of his or her compensation was, is, or will be directly or indirectly linked to the specific recommendations or views expressed in this research report. RATING DEFINITIONS All companies under coverage are assigned a rating of Buy, Hold or Sell based on the expected 12 month total return estimated by the analyst(s). The total return is a combination of the estimated capital gain or loss, in addition to the estimated 12 month forward dividends or distributions. In relation to all companies that Moelis Australia Securities conducts research coverage on the relevant total return bands that derive the ratings are: Buy: >15% Hold: 5% to 15% Sell: <5%. RATINGS DISTRIBUTION TABLE Distribution of Ratings as at 28 February 2018 SELL HOLD BUY 1.7% 31.0% 65.5% Rating and Price Target History: Oneview Healthcare PLC (ONE) as of 27/02/2018 5

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