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Medworxx Solutions Inc.

Corporate Overview
September 2013

Forward looking statement


This presentation contains forward-looking statements, which can be identified by the use of the forward-looking terminology, such as may, intend, will, expect, anticipate, estimate, seek, or continue or the negative thereof or other variations thereon or comparable terminology. In particular, any statements, express or implied, concerning trends, future operating results, growth, performance, business prospects and opportunities or the ability to generate revenues, income or cash flow are forward-looking statements. These statements reflect managements current beliefs, including beliefs as to future financial and operating results, and they are based on information currently available to management. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to known and unknown risks and uncertainties. Such risks include but are not limited to: the impact of general economic conditions, market volatility, fluctuations in costs, and changes to the competitive environment, as well as other risks disclosed in the public filings of Medworxx Solutions Inc. (Medworxx) which can be found at www.sedar.com These factors should be considered carefully and undue reliance should not be placed on forwardlooking statements. Although the forward-looking statements are based upon what management believes to be reasonable estimates and assumptions, Medworxx cannot ensure that actual results will not be materially different from those expressed or implied by these forward-looking statements. Unless specifically required by law, Medworxx does not assume any obligation to update or revise these forward-looking statements to reflect new events or circumstances.

Medworxx :: Corporate Overview


Medworxx Solutions Inc. founded in 2004 Toronto-based Hospital Patient Flow Software Provider Multi-year, Recurring per-bed revenue model Strong capital position to execute international growth strategy in 2013/2014 26.6M $ 9.6M $ 2.6M $ 6.1M 50%

Shares Outstanding (FD) Market Cap ($0.36 share price at 6/30/2013) Net Cash (as at 6/30/2013) 2012 Revenue (2011 Revenue $4.8M) Institutional Ownership

Medworxx :: Highlights
Medworxx Patient Flow aids hospitals in cutting spending and increasing revenues; thereby optimizing hospitals utility and maximizing ROI Large near-term opportunity in Canada, US, and UK representing over 1,170,000 hospital beds and a $249M annual revenue opportunity Goal of becoming the de facto standard in hospital patient flow solutions
33% of Canadian acute care beds under license

Scalable growth with high-margin target markets Intellectual property fully developed with limited capex requirements Legacy Compliance & Education product suite generates consistent cash flow

Medworxx :: IT Solutions
Patient Flow Launched in 2008 Compliance & Education Launched in 2005 Learning Management

Policies & Documents

across >320 hospitals


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Medworxx :: Patient Flow Solutions


Assessments Utilization Management Bed Board

Independent patient assessment form Core framework established Flexible dynamic enables institution configuration

Monitors patient stay based on clinical assessment Real-time Improves discharge rates

Efficient bed management tool Real-time clinical status Optimizes resource use

Identify Delay Hotspots

Maximize Existing Beds


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Inefficient Patient Flow :: Higher Costs

$900B
annually in hospital care in North America

$49,500
loss per bed, per year due to inefficient patient flow*

$1,100 45

average cost of a hospital bed per day

average days lost per bed per year due to inefficiencies


*The Advisory Board
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Patient Flow :: Hot Spots


Thin operating margins Emergency Department overcrowding Wait times and readmission cycles Costly delays from admission to discharge 2.4 million ALC days in Canada Bed blocking overcapacity Canada at ~90% Care quality damaged by disrupted journey
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Real-Time Measurement :: Efficient Patient Flow

Challenge
Root of patient flow challenge too much variability in patients state and care

Solution
Reduce variability with daily clinical assessments under 3 minutes each patient

Result
Less system-wide drag Fewer inefficiencies
Clinical Assessments

Clear Progress :: Analytics & Performance Indicators


Simple input process

for Real-time access to data demand and capacity Tracks management Discharge
Delays

Manage appropriate levels of care for every patient, every Tracks Bed day Gain 360 insights into the patient journey from admission to discharge

Occupancy Against Targets

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Patient Flow :: Results


Reduced Alternate Level of Care (ALC) beds percentages from:
Medworxx has helped us identify process and communication issues to improve the planning and teamwork related to complex patient discharges. Patti Cochrane VP, Patient Services & Quality and CNO

+18% to 5.9%
Reduced medical unit ALC days from

Medworxx needs to be melted into every component of your organization. Diane Muscat Manager, Patient Flow & Clinical Utilization

15.5 to 11.6 15% to 89%


Increased percentage of acute-care patients given an Estimated Discharge Date (EDD):

More patients never having an RFD associated with their stay means more timely discharges and a better flow of patients. Jane Casey Director, Medicine Programs

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Patient Flow Addressable Market :: Near-Term

79,005 940,000 160,000 415,000 82,850


Hospital beds Hospital beds Hospital beds Hospital beds Hospital beds

$15M
Annual Opportunity

$200M $34M
Annual Opportunity Annual Opportunity

$85M
Annual Opportunity

$17M
Annual Opportunity

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Addressable Market :: Canada


Quebec 23,469
Total Hospital Beds
90% Capacity

142
Medworxx Licensed Beds
..

0.6%
Market Penetration

Rest of Canada 55,536


Total Hospital Beds

25,427
Medworxx Licensed Beds
..

45.8%
Market Penetration

79,005
Total Hospital beds

Medworxx Licensed Beds

25,569

Market Penetration

33%

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Medworxx :: Current Penetration


33%
Acute-care Beds in Canada
..

4
Provincial Agreements
..

135+
Patient Flow Hospitals ..

~27,500
Acute-care Beds Internationally

Expanding in USA

.. Ontario Case Example


33% Acute-care Beds in Ontario 2 Regions (LHINs) 23 Hospitals
.. 14

Expanding in UK ~2,000 beds

Medworxx :: Market Coverage 33% 10%


Yukon Territory

1,900
United Kingdom

Northwest Territories

Nunavut

acute-care beds in Canada using Medworxx Patient Flow solution

acute-care beds in Canada licensed on Medworxx Bed Board

142 2,692
British Columbia Quebec

8,500
Alberta Saskatchewan

7,980 0
Ontario

0
Newfoundland

1,970
Manitoba Prince Edward Island

Provincial & Regional Authorities Alberta Health Services Fraser Health Authority;Vancouver Coastal Health Authority, BC The Province of New Brunswick The Province of Nova Scotia
Select Hospitals Stevenson Memorial North Bay General Sault Area Hospital Sudbury Regional St. Michael's Woodstock General St. Thomas Elgin General Calgary Health Region Chinook Health Region

3,000 1,400

Nova Scotia

New Brunswick

David Thompson Health Region Deux Montagnes Palliser Health Region Peace Country Health 15 St. Joseph's General - Comox

Sales Strategy
Direct Model
Direct Sales Audits with or without partners

Indirect Model
Consultants / Partners ALSA Distributors

ALSA
Appropriate Length of Stay Audit Leverage the capability of and data from Medworxx patient flow without a full deployment

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Appropriate Length of Stay Audit


Appropriate Length of Stay Audit (ALSA) Quickly Unlocks Critical Barriers to Patient Flow

If patients were clinically appropriate (or not) for the level of care they are receiving.

If patients were clinically ready for discharge or transition to an alternate level of care.

Barriers for each acute care hospital day beyond what is clinically necessary: segmented by hospital, physician, or community.

Reasons and details for each barrier or delay, such as services delays, observation days, and community placement issues.

Patient Flow Beds :: Growth


30,000

Patient Flow Beds under licence

25,000

20,000

# Beds

15,000

10,000

5,000

Beds

2007 7,531

2008 10,278

2009 10,920

2010 12,858

2011 21,252

2012 26,469

2013_Q2 27,578

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Medworxx :: Year End Financials (12/31)


7.00 6.00

5.00

$ in Millions

4.00

3.00

Revenue Adj EBITDA

2.00

1.00

2004 (1.00) 2005 2006 2007 2008 2009 2010 2011 2012

(2.00)

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Recurring Revenue :: Business Model Q2_2013


Recurring revenue

% 78

Maintenance and Hosting fees Annual Renewable Software Licenses


Annual Renewable Licences, 48% Maintenance & Hosting, 30%

Non-recurring revenue

% 22

Perpetual Software Licenses Consulting Services

Perpetual Licences, 15%

Consulting Services, 7%

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Enterprise Valuation :: Comparison


Corporation Medworxx Inc. Cerner Corporation Authentdate Holdings Corp. Computer Programs & Systems Inc. MedAssets, Inc. Medidata Solutions Inc. Merge Healthcare Inc. Quality Systems Inc. Streamline Health Solutions Inc. WebMD Health Corp. Syslogist Ltd. Constellation Software Inc. Stock Symbol/Exchange TSXV:MWX Nasdaq: CERN Nasdaq: ADAT Nasdaq: CPSI Nasdaq: MDAS Nasdaq: MDSO Nasdaq: MRGE Nasdaq: QSII Nasdaq: STRM Nasdaq: WBMD TSXV: SYZ.V Toronto: CSU.TO Enterprise Value/Revenue 1 6.16 7.35 2.82 2.94 8.09 2.19 2.24 3.94 2.35 8.96 3.31

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Medworxx :: Leadership
Board of Directors
George Elliott, Chairman of the Board
Director, executive, advisor on long term financial strategies to numerous public companies President & CEO, Medworxx President & CEO at St. Thomas Elgin General Hospital Vice President of Corporate Strategy and Development, CIO at Sunnybrook Health Sciences Centre, Toronto Co-founder of Broadview Capital Management Inc. The Portable Executive; founder and former President & CEO of Dexit Incorporated Independent consultant; former Senior Partner with Ernst & Young 26+ years with Ontario Public Service; former member, Board of Governors of the Information Technology Association of Canada (ITAC)

Executive Team
Dan Matlow, President & CEO 20+ years experience in software sales, consulting, and development; Former VP of Healthcare Services Open Text; helped grow Corechange from $0 - $27M revenue with 70+ hospital customers in North America

Dan Matlow, Director


Paul Collins, Director Sam Marafioti, Director

Peter Ellis, UK Managing Director


40 years of international management and consulting experience including leadership roles within the UK National Health Service (NHS), former President and CEO of Sunnybrook Health Science Centre, ON and Senior Partner at Ernst & Young 20+ years experience in international financial management at DWL and Delrina (now Symantec); emphasis on IT market 10+ years experience in sales and sales management at Corechange and Open Text; top sales performer; emphasis on the healthcare market

Brian Goffenberg, CA, CFO & Executive Vice President

Lee Matheson, Director

Niels Tofting, Senior VP Sales

Renah Persofsky, Director

Barry Tissenbaum, Director

Lori Frampton, MHS, RN, VP Patient Flow Process Improvement and Data Analysis
18+ years in senior healthcare management at Health Quality Ontario, Royal Victoria Hospital, Ontario MOHLTC. Certified Lean/Six Sigma Black Belt 25+ years in healthcare IT; former principal at Continuum, focused on product development, sales and support 10+ years in software development and implementations; former Director, Learning Development, Longview Solutions

Bernard Webber, Director

Larry Vanier, VP Decision Support & Healthcare Processes

Joel Alfane, VP Development & Services

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Medworxx :: Highlights
Medworxx Patient Flow aids hospitals in cutting spending and increasing revenues; thereby optimizing hospitals utility and maximizing ROI Large near-term opportunity in Canada, US, and UK representing over 1,170,000 hospital beds and a $249M annual revenue opportunity Goal of becoming the de facto standard in hospital patient flow solutions
33% of Canadian acute care beds under license

Scalable growth with high-margin target markets


Intellectual property fully developed with limited capex requirements

Legacy Compliance & Education product suite generates consistent cash flow

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Medworxx Solutions Inc.


Dan Matlow, President & CEO dmatlow@medworxx.com 416.642.1278 x311 Brian Goffenberg, Chief Financial Officer & EVP bgoffenberg@medworxx.com 416.642.1278 x315

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