6-K
SHL TELEMEDICINE LTD (SHMLF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April 2024
Commission File Number: 001-41641
SHL TELEMEDICINE LTD.
(Translation of registrant’s name into English)
90 Yigal Alon Street
Tel Aviv 67891, Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ⌧ Form 40-F ☐
EXPLANATORY NOTE
On April 17, 2024, SHL Telemedicine Ltd. (the “Company”) issued a press release and an investor presentation with respect to its 2023 annual results, copies of which are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein. In addition, on the same day the Company filed with the SIX Swiss Exchange its Annual Report to shareholders for the year ended December 31, 2023 (the “Report”), which contains audited consolidated financial statements as of and for the year ended December 31, 2023. A copy of the Report is attached hereto as Exhibit 99.3 and is incorporated by reference herein. The press release, investor presentation and Report contain forward-looking statements and include cautionary statements identifying important factors that could cause actual results to differ materially from those in the forward-looking statements.
This Form 6-K is incorporated by reference into the Company's Registration Statement on Form S-8 filed with the Securities and Exchange Commission on June 9, 2023 (Registration No. 333-272546).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SHL Telemedicine Ltd. | |
|---|---|
| By: | /s/ Amir Hai |
| Amir Hai | |
| Chief Financial Officer |
April 17, 2024
Exhibit 99.1
Press release
Ad hoc announcement pursuant to Art. 53 LR
SHL Announces Full-Year 2023 Results - Stable Revenue Growth Alongside Groundbreaking Clinical Milestones
TEL AVIV & ZURICH & NEW YORK, April 17, 2024 - SHL Telemedicine Ltd. (NASDAQ: SHLT; SIX Swiss Exchange: SHLTN) ("SHL" or the "Company"), a leading provider and developer of advanced personal telemedicine solutions, announced today its results for the full-year 2023, highlighting fiscally responsible growth across all regions and a strategic focus on expansion and innovation.
In 2023, SHL Telemedicine achieved key highlights, underscoring its global market strength. SHL’s Israel operation maintained stability and profitability, reflecting the company's solid foundation in its home market. In the US, significant advancements were made toward launching direct-to-consumer (B2C) sales of the SmartHeart^®^ ECG platform, enhancing access to remote cardiac care. Additionally, the launch of virtual visit services in Germany, in collaboration with BARMER, marked a significant expansion of SHL's offerings, further demonstrating the company's innovative approach to telemedicine and its commitment to broadening healthcare accessibility.
FY2023 Financial Highlights:
\*All comparable previous periods figures are in constant currency^1^.
| • | Total revenues rose to USD 57.1m, a 3.1% increase from USD 55.4m in 2022. |
|---|---|
| • | Revenues from the Company's operation in Israel increased by 2.3% compared to 2022, with revenues standing at USD 42.1m. |
| --- | --- |
| • | Revenues from the Company's operation in Germany amounted to USD 14.1m, a 2.4% increase from USD 13.7m in 2022. |
| --- | --- |
| • | Adjusted EBITDA^2^ for the Company was USD 2.1m, compared to USD 3.5m in 2022, mainly due to increased investment in Germany and in USA as well as<br> non-recurring expenses of USD 2.2m, related to onetime and restructuring expenses of USD 1.6m in Germany and USD 0.6m Nasdaq® listing expenses. |
| --- | --- |
| • | Cash on hand and short-term cash investments as of December 31, 2023, remain robust at USD 26m. |
| --- | --- |
| • | Net loss was USD 6.9m, compared to a net loss of USD 0.4m in 2022. The decrease is mainly related to a lower operating profit and to financial expenses due to<br> investor options modifications, which is a non cash item. |
| --- | --- |
^1^ Constant currency – to enable meaningful comparison between 2023 and 2022 results, 2022 results are also presented at 2023 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period.
^2^ Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below, and Reconciliation Table of Adjusted EBITDA and Adjusted EBIT to net profit each presented below as required by the rules of the U.S. Securities and Exchange Commission with respect to non-GAAP financial measures.
Strategic Developments and Highlights:
| • | In the United States, SHL made significant strides in its direct-to-consumer strategy, prioritizing promotion of its SmartHeart^®^ ECG technology.<br> Concurrently, SHL continues to leverage its Tier1 strategic customer relationships, including the integration within CVS Minute Clinics, underscoring SmartHeart^®^'s increasing acceptance in the healthcare ecosystem. |
|---|---|
| • | In 2023, clinical studies from Mayo Clinic and the Imperial College London showcased SmartHeart^®^'s unique promise to reduce emergency visits and<br> readmission rates for cardiac patients. The final TELE-ACS findings from Imperial College London study presented at ACC24 and published in JACC, revealed groundbreaking results including a 76% reduction in hospital readmissions and a 41%<br> decrease in ED visits, validating SHL's unique offering in remote cardiac care. |
| --- | --- |
| • | SHL's SmartHeart^®^ technology also excelled in the U.S. Army's Project Convergence – Capstone 4 experiment, showcasing its reliability and advancing<br> military healthcare. |
| --- | --- |
| • | In Israel, SHL's B2C and B2B activities saw growth, with revenues increasing by 2.3% to $42.1m. Despite challenges caused by the war that broke out in the beginning<br> of the 4^th^ quarter, Israel remains highly profitable for SHL. |
| --- | --- |
| • | In Germany, the Doctors' Virtual Visit service launched with BARMER is now available to 12.4 million insured individuals. With a strong growth trend, it's expected to<br> be a key driver for reaching break-even in German operations. |
| --- | --- |
Looking ahead to 2024, the Company expects to see continued growth in revenues with double-digit growth in profitability in their Israel operations; continued consistent growth in the Virtual Visits service in Germany alongside the German operation reaching break even in 2024 and profitability during 2025; Moreover, the company expects to benefit from the investments previously made in the US, both in B2B and B2C activities.
Erez Nachtomy, CEO of SHL, remarked: "The results from 2023 reflect our strategic approach towards stable growth and financial stability amidst the dynamic market landscape. Our achievements in Israel, the advancement of our Virtual Visit services in Germany, and our focused investments in the US market provide the fundament for further growth. Our commitment remains steadfast on driving growth, enhancing financial stability, and meeting our strategic milestones, all while delivering value to our customers and stakeholders and leading the charge in the telemedicine landscape."
Conference Call 4 pm CET / 10 am ET / 5 pm Israel Time
The conference call can be accessed live via the below dial-in numbers:
| From Europe | +41 (0)58 310 50 00 |
|---|---|
| From the UK | +44 (0) 207 107 06 13 |
| From the USA | +1 (1) 631 570 56 13 |
| From Israel | +972 3763 1173 |
| Toll free: | 1 80 921 44 27 |
| Local: | +972 3763 1173 |
Other international numbers are available here.
After the presentation, there will be an open Q&A. The conference call is scheduled to last 40-60 minutes and will be held in English.
The presentation is available on: www.shl-telemedicine.com/reports
The Full-Year Report 2023 is available on: www.shl-telemedicine.com/reports
SEC submission of the Full-Year Report and presentation is available on:
https://www.shl-telemedicine.com/sec-filing/
About SHL Telemedicine
SHL Telemedicine is engaged in developing and marketing personal telemedicine systems and the provision of medical call center services, with a focus on cardiovascular and related diseases, to end users and to the healthcare community. SHL Telemedicine offers its services and personal telemedicine devices to subscribers utilizing telephonic and Internet communication technology. SHL is listed on the SIX Swiss Exchange (SHLTN, ISIN: IL0010855885, Security No.: 1128957) and on the Nasdaq Stock Exchange (SHLT, ISIN: US78423T2006, CUSIP: 78423T200). For more information, please visit our website at www.shl-telemedicine.com.
Financial calendar
May 9, 2024, Special General Meeting. Tel Aviv, Israel
For more financial information:
For a comprehensive understanding of the Company’s financial reports and related management’s discussion and analysis for applicable periods, please visit the Company’s profile at https://www.sec.gov/edgar or the Company’s full report on its site: www.shl-telemedicine.com/reports
Key Figures for 2023
Key figures (as reported):
| in USD million (except per share amounts) | 2023 | 2022 | % change |
|---|---|---|---|
| Revenues for the period | 57.1 | 59.0 | (3.3) |
| Revenues | |||
| Revenues<br><br> <br>• Germany<br><br> <br>• Israel<br><br> <br>• Rest of the World | 14.1<br><br> <br>42.1<br><br> <br>0.9 | 13.4<br><br> <br>45.1<br><br> <br>0.5 | 5.2<br><br> <br>(6.8)<br><br> <br>88.0 |
| EBIT | (9.0) | (5.2) | (74.3) |
| EBITDA* | (1.3) | 2.0 | |
| Net profit (loss) | (6.9) | 0.2 | |
| EPS (Basic loss) | (0.43) | (0.01) | |
| Operating cash flow | (1.5) | (0.1) |
* EBITDA: operating profit excluding depreciation and amortization expenses of USD 7.7 m, and USD 7.1 m in the comparable period
Adjusted key figures (in constant currency):
In the table below, 2022 results have been presented at 2023 exchange rates. Management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period.
| In USD million | 2023 | 2022 | % change |
|---|---|---|---|
| Revenues | 57.1 | 55.4 | 3.1 |
| Revenues<br><br> <br>• Germany<br><br> <br>• Israel<br><br> <br>• Rest of the World | 14.1<br><br> <br>42.1<br><br> <br>0.9 | 13.7<br><br> <br>41.1<br><br> <br>0.5 | 2.4<br><br> <br>2.3<br><br> <br>88.0 |
| Adjusted EBIT** | (5.6) | (3.3) | |
| Adjusted EBITDA *** | 2.1 | 3.5 |
**Adjusted EBIT: Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below.
***Adjusted EBITDA: Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below.
EBITDA, Adjusted EBITDA and Adjusted EBIT Tables (2022 results are presented in 2023 exchange rates)
| EBITDA: | ||
|---|---|---|
| in USD Thousand | 2023 | 2022 |
| Operating loss | (9,006) | (5,336) |
| Plus: | ||
| Depreciation and amortization expenses | 7,692 | 6,813 |
| EBITDA | (1,314) | 1,477 |
| 2023 | 2022 | |
| Operating loss – EBIT | (9,006) | (5,336) |
| Plus: | ||
| Cost of share-based payments | 1,252 | 1,601 |
| Non-recurring expenses | 2,198 | 397 |
| Adjusted EBIT | (5,556) | (3,338) |
| in USD Thousand | 2023 | 2022 |
| --- | --- | --- |
| EBITDA | (1,314) | 1,477 |
| Plus: | ||
| Cost of share based payments | 1,252 | 1,601 |
| Non-recurring expenses | 2,198 | 397 |
| Adjusted EBITDA | 2,136 | 3,475 |
Reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities and Exchange Commission with respect to non-GAAP financial measures (2022 results are presented also in 2023 exchange rates)
| in USD Thousand | 2023 | 2022 | 2022(CC) |
|---|---|---|---|
| Net profit (loss) | (6,855) | 215 | (439) |
| Financial income, net | 3,042 | 6,477 | 5,900 |
| Tax expenses | 891 | 1,097 | 1,003 |
| Depreciation and amortization expenses | 7,692 | 7,134 | 6,813 |
| EBITDA | (1,314) | 1,969 | 1,477 |
| Cost of share-based payment | 1,252 | 1,757 | 1,601 |
| Non- recurring expenses | 2,198 | 416 | 397 |
| Adjusted EBITDA | 2,136 | 4,142 | 3,475 |
The Company believes Adjusted EBITDA and Adjusted EBIT provide useful information regarding the Company’s financial and operating performance. Adjusted EBITDA and Adjusted EBIT are not U.S. GAAP measures. You should not construe Adjusted EBITDA and Adjusted EBIT as alternatives to operating profit or cash flows from operating activities determined in accordance with U.S. GAAP or as a measure of liquidity. Adjusted EBITDA and Adjusted EBIT are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies.
Forward Looking Statements:
This announcement contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, specifically Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S.
Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements, including, the Company’s anticipation with respect to changes in its results of operations from prior periods.
Readers are cautioned that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from historical results or any
future results expressed or implied by forward-looking statements. Factors that can cause actual results to differ from expectations and those contained in forward-looking statements include those risks described in Item 3.D. "Key Information—Risk
Factors" contained in the Company’s Registration Statement on Form 20-F filed with the U.S. Securities Exchange Commission \(the "SEC"\) on March 28, 2023 and in its subsequent filings and submissions with the SEC, including, but not limited to, the
Company’s ability to operate and comply with the complex and evolving regulations in the highly regulated healthcare industry; the continued development, consumer acceptance and market adoption of the Company’s products and services in the
relatively new, unproven and volatile and rapidly changing telehealth market; the Company’s ability to develop and introduce new products and solutions and enhancements to existing ones; the significant and increasing levels of competition in the
telemedicine market; the impacts of COVID-19 and future pandemics and epidemics; the Company’s ability to continue to attract and retain key employees and personal in the highly competitive healthcare industry; the loss or breach of the Company’s
proprietary rights and data security and privacy risks; political, judicial, legal, economic and military conditions in Israel and the surrounding region; global economic and financial market conditions and the Company’s ability to adapt to and
comply with the different business and market factors, conditions, requirements and laws and regulations in the various countries in which the Company operates internationally; currency fluctuations; labor disputes; the Company’s ability to manage
growth and integrate acquired businesses and expanding operations; the Company’s ability to obtain adequate levels of insurance to cover potential losses; the Company’s dependence on key suppliers and sub-contractors and other third parties; and
other matters and risks not yet known to the Company or not currently considered material by it. You should not place undue reliance on these forward-looking statements. All written and oral forward-looking statements, attributable to the Company,
or persons acting on its behalf, are qualified in their entirety by these cautionary statements. Unless required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.
For further information please contact:
Fabienne Farner, IRF, Phone: +41 43 244 81 42, farner@irf-reputation.ch
Exhibit 99.2
SHL Telemedicine Yearly Investor Presentation 2023
2 מידע צופה פני עתיד Forward looking statements This presentation was prepared for the purpose of providing and presenting information in a summary only and cannot replace a review of the reports of SHL Telemedicine (hereinafter: "the Company"). Many of the statements included in this presentation, as well as oral statements that may be made by us or by officers, directors or employees acting on behalf of us, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, specifically Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. Readers are cautioned that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from historical results or any future results expressed or implied by forward-looking statements. Factors that can cause actual results to differ from expectations and those contained in forward-looking statements include those risks described in Item 3.D. “Key Information—Risk Factors” contained in the Company’s Registration Statement on Form 20-F or most recent Annual Report on Form 20-F filed with the U.S. Securities Exchange Commission (the “SEC”) and in its subsequent filings and submissions with the SEC, including, but not limited to, the Company’s ability to operate and comply with the complex and evolving regulations in the highly regulated healthcare industry; continued development, consumer acceptance and market adoption in the relatively new, unproven and volatile and rapidly changing telehealth market; the Company’s ability to develop and introduce new products and solutions and enhancements to existing ones; the significant and increasing levels of competition in the telemedicine market; the impacts of COVID-19 and future pandemics and epidemics; the Company’s ability to continue to attract and retain key employees and personal in the highly competitive healthcare industry; the loss or breach of the Company’s proprietary rights and data security and privacy risks; political, judicial, legal, economic and military conditions in Israel and the surrounding region; global economic and financial market conditions and the Company’s ability to adapt to and comply with the different business and market factors, conditions, requirements and laws and regulations in the various countries in which the Company operates internationally; currency fluctuations; labor disputes; the Company’s ability to manage growth and integrate acquired businesses and expanding operations; the Company’s ability to obtain adequate levels of insurance to cover potential losses; the Company’s dependence on key suppliers and sub-contractors and other third parties; and other matters and risks not yet known to the Company or not currently considered material by it. You should not place undue reliance on these forward-looking statements. All written and oral forward-looking statements, attributable to the Company, or persons acting on its behalf, are qualified in their entirety by these cautionary statements. For the avoidance of doubt, it is clarified that the company does not undertake to update the information, in whole or in part, contained in this presentation, whether as a result of new information, a future event or for other reasons, except as required by law. It is also clarified that the company's plans and strategy contained in this presentation are correct at the time of their publication and can and will change in accordance with the decisions of the company's board of directors, as they will be from time to time, and/or due to their being dependent, in whole or in part, on third parties that are not under the control of the company as well as on additional risk factors to which the company is exposed . This presentation contains trade names, trademarks and service marks of other companies. The trade names, trademarks, and service marks of other parties are not used or displayed to imply a relationship with, or endorsement or sponsorship of, those other parties.
SHL Telemedicine At a Glance 3 Active in 2 Models: B2B & B2C Active in 3 Territories Over 30 years of experience and data aggregated $57.1M Revenues in 2023 Unique Portable, 12-lead ECG technology SmartHeart ® Platform Nasdaq: SHLT SWX: SHLTN Traded on NASDAQ and in Switzerland SHL is a leader in the development and provision of advanced telemedicine technologies and services *Compared to FY2022 in Constant currency – to enable meaningful comparison between FY2023 and FY2022 results, FY2022 results are also presented at FY2023 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period. +3.1%(*)
FY2023 Financial Data Overview 4 (*) Please see Supplemental Information at end of presentation for a reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures (**) Constant currency – to enable meaningful comparison between FY2023 and FY2022 results, FY2022 results are also presented at FY2023 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period. Operational Cash Flow $(1.5)M Adjusted EBITDA(*) $2.1M Revenues $57.1M Cash on Hand ~$26M Gross Profit $25.3M 44% of revenues Net Loss $(6.9)M Germany Revenue: $14.1M +2.4% Compared to FY2022cc(**) USA Revenue: $0.9M +88% Compared to FY2022cc(**) Israel Revenue: $42.1M +2.3% Compared to FY2022cc(**) Revenue Growth in all Territories in Constant Currency(**)
Operational Overview Active in 3 Territories, B2B & B2C 5 Germany USA Israel SHL Telemedicine SHL B2C SHL B2B Chronic B2B Telehealth B2B SmartHeart B2B Sales SmartHeart B2C Sales Providing advanced medical services to large institutional customers in Israel, through Mediton Advanced B2C telemedicine services, selling cardiac monitoring services to consumers with 24/7 medical center and intensive care mobile units in coverage areas Telemedicine services in a B2B model with leading Health Insurers. Management and stabilization of chronic patients including geriatric patients, saving costs for insurers Advanced remote medical services, including Virtual Visit services. Agreements with leading health insurers in Germany to save costs. New agreement for 7 years with BARMER Marketing and distribution of SmartHeart platform via B2B channels, such as CVS chain, medical device distributors, hospitals etc Initiated marketing and distribution of SmartHeart DTC membership program, through online sales
Looking Ahead 2024 Outlook 6 Israel Germany USA Accumulating meaningful operational data for optimizing sales strategy Significant advancements in major B2B sales channel Continued growth in Virtual Visits services Advancing operational efficiency towards break even, with the goal of achieving profitability in 2025 Expecting double digit growth in revenues and profits Launch of new products in B2C activity Implementing hybrid B2B medical services - combining onsite and mobile services Expecting improvement in operational efficiency including reduction in expenses with achievement of commercial goals
Israel Activity Advanced B2C Telemedicine Services Advanced B2B Medical Services
Israel Activity 2023 Results Summary 8 SHL Leads in B2C Telemedicine Advanced B2B Medical Services Selling cardiac monitoring services to the end customer: a 12-lead personal ECG device for remote medical data transfer, a 24/7 medical center, and intensive care mobility in coverage areas Over 100 institutional clients - Mediton Group is a leading provider of B2B healthcare services in Israel to the largest and leading companies in Israel, government institutions, the Ministry of Defense, National Insurance, health funds and insurance companies (*) Constant currency – to enable meaningful comparison between FY2023 and FY2021-22 results, FY2021-22 results are also presented at FY2023 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period. (**) Please see Supplemental Information at end of presentation for a reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures Key growth engines for 2024: Increasing the number of subscribers Implementation of cross sales between SHL and Mediton Leveraging the platform and reputation to add synergistic services and products to customers Acquisitions in the company's fields of activity or in tangential fields Telemedicine hotline A network of 500+ specialist doctors 4 advanced medical centers Customer Support Hotline Intensive care ambulance unites with extensive coverage areas FY2023 FY2022 REVENUES $42.1M ADJUSTED EBITDA(**) $11.4M REVENUES(*) $41.1M $11.5M ADJUSTED EBITDA(**)(*) Robust performance and continued industry leadership despite the war in Gaza
Israeli Activity Key Annual Operating Data 800,000 Contacts with the telemedicine center 18,000 Tests performed at the medical centers Over 23,000 Ambulances Alerted 1,500,000 Online data transmissions from end user devices to the medical center 315,000 Contact with customer service center 33,000 Virtual doctor visits 23,000 Physical doctor visits 9
10 B2C activity in Israel - strong & leading brand in the field of telemedicine services SHL operates a professional medical center for remote guidance and treatment around the clock offering advanced intensive care mobile units. 50,000Subscribers $40 Average per subscriber / month 6 years average per subscriber Over 150,000 devices in the subscriber homes SHL telemedicine subscribers utilize the SHL ECG technology, including its advanced SmartHeart ECG B2B activity in Israel - advanced medical services (Mediton) Providing various medical services to institutional clients in order to receive an indication of the medical status of various subjects, verify compliance with various medical standards, provide preventive medicine and diagnostic medicine. 400 Employees Over 500 Specialist Doctors 4 advanced medical centers Mediton is a significant growth engine SHL’s Israel Operation ~100 leading institutional clients Cross Selling
Germany Activity
SHL Germany Telemedicine Services 12 Remote medicine services such as Virtual Visit and treatment of chronic patients, are becoming the Standard of Care The company has agreements with leading health insurers covering about 30% of the German health insurance market (about 25 million insured) SHL is the market leader in Germany and operates in a B2B model - management and stabilization of chronic patients and cost savings for health insurers - Fixed Fee Per Patient. FY2023 FY2022 REVENUES $14.1M ADJUSTED EBITDA(**) $(0.2)M REVENUES(*) $13.7M $(0.3)M ADJUSTED EBITDA(**)(*) (*) Constant currency – to enable meaningful comparison between FY2023 and FY2021-22 results, FY2021-22 results are also presented at FY2023 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period. (**) Please see Supplemental Information at end of presentation for a reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures Chronic Telehealth German Insurance Providers Revenue based on a Fixed Fee Per Patient Revenue based on a Pay Per Use Model Management and Stabilization of Chronic Patients Remote Medical Services B2B Model
13 Germany Virtual Visits Service Penetrating a market of about 800 million annual physical doctor visits The virtual visit service is already available to 12.4 million BARMER and AOK PLUS insureds throughout Germany Consistent Growth since Launch in April 2023 VIRTUAL VISITS (*) https://www.statista.com/statistics/236512/annual-doctor-visits-per-capita-in-germany-since-1991/ Regulatory Drivers in 2024 No limitation on the extent of virtual visits Allowing physicians to treat patients from home In Germany - an average of 10 physical visits per person to a doctor each year (*)
USA Activity SHL USA
USA 15 B2C plan: focus on direct-to-consumer sales of the SmartHeart® ECG Tier1 Strategic customers relationships strengthening our reputation in support of the SmartHeart® direct-to-consumer move Leveraging our network of cardiologists that is already set up across the US REVENUES FY23 $0.9M REVENUES FY22 $0.5M The Platform B2B Model B2C Model Agreements with Hospitals Agreement with CVS Successful Participant in a US Army Evaluation Online - private subscription to SmartHeart service
USA Established a robust strategy in 2023 that prioritizes direct-to-consumer sales of SmartHeart® 16 “With a focus on remote cardiac care, SHL Telemedicine harnesses the power of digital tools to bring life-saving services directly to patients, regardless of their location.” Establishing Go To Market Strategy and building market presence
USA 17 Mayo Clinic HELP MI Telemedicine group compliant users vs. control group Imperial College London TELE-ACS Study Telemedicine group vs. control standard care group at 3 months follow-up Presented at ACC24 Late-Breaking Clinical Trial Sessions Accepted for publication in the Journal of the American College of Cardiology(*) Presented at VPM 23 Reduction in “any ED Hospitalization” Reduction in “any ED visit” CV ED visitor Hospitalization 43% ZERO 33% Reduction in hospital readmission Reduction in ED attendance 76% 41% (*) https://www.jacc.org/doi/10.1016/j.jacc.2024.03.398 Outstanding full results from Imperial College study - Presented at ACC24 Promising Initial Results in Mayo Clinic study The results translate into significant cost savings for hospitals in readmissions A very compelling business model for hospitals to use the SmartHeart platform
Financials Selected data from P&L statements, balance sheet and cash flow
Financials - P&L* 19 (*) compared to FY 2022 in constant currency, Please see Supplemental Information at end of presentation for a description of the basis of presentation of the constant currency amount calculations as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures (**) Please see Supplemental Information at end of presentation for a reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures Revenues In USD million In USD million (except per share amounts) FY2023 FY2022cc* Revenues for the period 57.1 55.4 Revenues by territories Germany 14.1 13.7 Israel 42.1 41.1 Rest of the World 0.9 0.5 Adjusted EBIT(**) (5.6) (3.3) Adjusted EBITDA(**) 2.1 3.5 Net loss (6.9) (0.4)
Financials - Balance Sheet and Cashflow 20 Total cash and short-term investments In USD million In USD million FY 2023 FY 2022 Cash and cash equivalents 6.7 4.5 Short term investments 19.6 14.2 Total cash and short-term investments 26.3 18.7 Short term bank debt 2.2 2.2 Long term bank debt 10.5 13.0 Total bank debt 12.7 15.2 Capital and reserves 153.6 128.8 Accumulated deficit (80.1) (73.1) Total Equity 73.5 55.7 Increase (Decrease) in cash and short-term investments 7.6 (13.4) Operational cash flow (1.5) (0.1)
Thanks SHL Telemedicine
22 Supplemental Information *Numbers are rounded up. **Adjusted EBIT: Please see the Adjusted EBITDA and Adjusted EBIT Table below. ***Adjusted EBITDA: Please see the Adjusted EBITDA and Adjusted EBIT Table below In the table below, FY 2022 results have been presented at FY 2023 exchange rates1. Management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period. Adjusted key figures (in constant currency1)* in USD million FY2023 FY2022cc % change Revenues 57.1 55.4 3.1 Revenues Germany Israel Rest of the World 14.1 13.7 2.4 42.1 41.1 2.3 0.9 0.5 88.5 Adjusted EBIT** (5.6) (3.3) Adjusted EBITDA *** 2.1 3.5 Key figures (as reported):* in USD million (except per share amounts) FY2023 FY2022 % change Revenues for the period 57.1 59.0 (3.3) Revenues Revenues Germany Israel Rest of the World 14.1 13.4 (5.2) 42.1 45.1 (6.8) 0.9 0.5 88.5 EBIT (9.0) (5.2) EBITDA (1.3) 2.0 Net profit (loss) (6.9) 0.2 Operating cash flow (1.5) (0.1) Reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures
23 Supplemental Information (1) Constant currency – to enable meaningful comparison between FY2023 and FY2022 results, FY2022 results are also presented at FY2023 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period. *Numbers are rounded up. Reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures (FY2022 results are presented also in FY2023 exchange rates1) The Company believes Adjusted EBITDA and Adjusted EBIT provide useful information regarding the Company’s financial and operating performance. Adjusted EBITDA and Adjusted EBIT are not IFRS or U.S. GAAP measures. You should not construe Adjusted EBITDA and Adjusted EBIT as alternatives to operating profit or cash flows from operating activities determined in accordance with IFRS or U.S. GAAP or as a measure of liquidity. Adjusted EBITDA and Adjusted EBIT are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies in USD million* FY2023 2022(CC1) FY2022 Net profit (loss) (6.9) (0.4) 0.2 Financial income net (3.0) (5.9) (6.5) Tax expenses 0.9 1.0 1.1 Depreciation and amortization expenses 7.7 6.8 7.1 EBITDA (1.3) 1.5 2.0 Share-based compensation 1.3 1.6 1.8 Non- recurring expenses 2.2 0.4 0.4 Adjusted EBITDA 2.1 3.5 4.1