Slide 1: FY23 Results Investor Presentation
T +61 3 5339 0704 E info@idxgroup.com.au Suite 9.02, Level 9, 45 William Street Melbourne Vic 3000 www.integraldiagnostics.com.au FY23 Results Investor Presentation 28 August 2023, Melbourne Integral Diagnostics Limited (ASX:IDX) attaches its FY23 Results Investor Presentation. For further detai
Slide 2: FY23 Results
FY23 RESULTS Dr. Ian Kadish (Managing Director & CEO) Craig White (CFO) 28 August 2023
Slide 3: IDX Vision and Values
IDX Vision and Values patients first PATIENTS ARE AT THE HEART OF EVERYTHING WE DO medical leadership IMPROVING OUTCOMES WITH EVIDENCE BASED CARE everyone counts WE WORK SAFELY, INCLUSIVELY AND RESPECT EACH OTHER create value DELIVER SUSTAINABLE VALUE TO ALL STAKEHOLDERS embrace change STRIVE FOR EX
Slide 4: Delivering on our Values – FY23
Delivering on our Values – FY23 Patient’s First Medical Leadership Everyone Counts Create Value Embrace Change • Served over 1.0 million • 248 reporting radiologists • 2,010 employees • Operating NPAT declined by • Implemented new clinical patients ✓ 165 employees 17.6% to $17.8m in an and corporate
Slide 5: FY23 Financial Highlights
FY23 Financial Highlights 22.1% growth in revenue reflects continued recovery in patient volumes from the COVID-19 pandemic and the acquisition of the X-Ray Group, Peloton Radiology and Horizon Radiology 71.5% 17.6% 13.9% 26.0% 22.1% 8.0% Net debt / increase in decline in increase in decline in incr
Slide 6: FY23: A Story of Two Halves
FY23: A Story of Two Halves A materially stronger second half profit result, demonstrated by an improvement in Group EBITDA margins by 1.7% to 20.2% for 2H FY23, illustrates the operating leverage in the business. In addition, leverage reduced by 0.2x to 2.9x as at 30 June 2023 (being 2.8x on a 2H F
Slide 7: DI Industry Reflecting COVID-19 Impact: Australia
DI Industry Reflecting COVID-19 Impact: Australia • Industry growth rates, on a 12-month rolling basis, reflect improvement in CY23 to date. Prior to this, after coming back strongly in CY21, industry growth rates declined significantly in CY22 given the onset of the Omicron variant of COVID-19, as
Slide 8: Shareholder Returns
Shareholder Returns Fully franked final dividend of 3.5cps (FY22: 3.0cps), resulting in a total FY23 fully franked dividend of 6.0cps (FY22: 7.0cps), representing 77.9% of FY23 Operating NPAT Operating EBITDA 100.0 80.0 41.5 AUD $m 60.0 45.4 46.4 38.8 40.0 26.3 52.0 20.0 36.0 39.8 26.7 29.3 - FY19 F
Slide 9: FY23 - Financial Performance
FY23 - Financial Performance
Slide 10: Results for FY23
Results for FY23 AUD $m FY23 FY22 Var. ($) Var. (%) Revenue 440.8 360.9 79.8 22.1% Operating EBITDA(1)(2) 85.2 74.8 10.4 13.9% Operating EBITDA margin 19.3% 20.7% Operating EBITA(1)(2) 43.8 41.0 2.8 6.9% Operating NPAT(1)(2) 17.8 21.7 (3.8) (17.6%) Operating Diluted EPS (cps) 7.6 10.2 (2.7) (26.0%)
Slide 11: Revenue
Revenue Revenue up 22.1% to $440.8m, reflecting both organic growth and the X-Ray Group, Peloton Radiology and Horizon Radiology acquisitions • Revenue growth of $79.8m, includes the X-Ray Group ($5.1m for four months from July to October 2022 following completion of the acquisition in November 2021
Slide 12: Operating Expenditure
Operating Expenditure Operating costs increased by 24.2% ($69.4m including acquisitions), largely reflecting higher labour costs, driven by inflation and labour market supply constraints. Lower 2H vs 1H FY23 operating expenditure (excluding labour) of $1.4m reflects management’s focus on reducing op
Slide 13: Capital Management
Capital Management AUD $m 30 Jun 2023 30 Jun 2022 30 Jun 2021 Solid balance sheet Cash and cash equivalents 33.9 123.2 62.2 Trade and other receivables 21.7 19.4 14.3 • FY23 net debt of $194.5m(1) (FY22: $101.5m), being 2.9x(2) EBITDA prior to non- Other current assets 7.1 7.8 5.8 operating transact
Slide 14: Cash Flow and Cash Conversion
Cash Flow and Cash Conversion Strong free cash flow AUD $m FY23 FY22 Operating EBITDA 85.2 74.8 • Free cash flow conversion of 93.0% (FY22 Non-cash items in EBITDA (0.1) (1.8) 78.3%), excluding replacement capex Changes in working capital 13.4 0.8 Replacement capital • Growth capital expenditure was
Slide 15: Capital Expenditure
Capital Expenditure Capex investment aligned with IDX’s strategy AUD $m FY23 FY22 FY21 Replacement 26.1 9.4 16.8 Growth 19.1 21.9 6.3 Total(1)(2) 45.2 31.3 23.1 Depreciation 25.5 20.6 19.1 (1) Represents cash + accruals (2) Excludes property, plant and equipment acquired as part of the X-Ray Group,
Slide 16: Regulatory Update
Regulatory Update
Slide 17: Regulatory Environment Activity
Regulatory Environment Activity Australia: MRI Licences • On 1 November 2022 the Federal government de-regulated MRI services in regional and rural areas, defined as Modified Monash Model 2-7. As at the date of this presentation no further licences or plans for deregulation of MRI licences have been
Slide 18: Strategy Update
Strategy Update
Slide 19: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) IDX continues to implement and develop its ESG strategy aligned to its values. Details of our ESG activities will be published in our FY23 ESG report.
Slide 20: Management's Strategy – Good Medicine is Still Good Business
Management's Strategy – Good Medicine is Still Good Business Strategic Strategy 1 Grow existing business and margin 2 acquisitions Accelerate Nurture and Consider accretive Drivers of Drive use of Drive our develop acquisitions that represent strategy organic teleradiology, ESG culture and a strong
Slide 21: Questions
QUESTIONS? Questions
Slide 22: Appendices
Appendices
Slide 23: IDX Today – Group Overview – June 2023
IDX Today – Group Overview – June 2023 Western Victoria Queensland New Zealand 5 Australia 5 Total IDX Queensland Western Geographic Market Victoria Victoria & NSW Queensland Queensland New Zealand New Zealand & NSW Australia Ballarat, Albury, Geelong, Wodonga, Sunshine Coast, Gold Coast, Brisbane,
Slide 24: Reconciliation of Operating to Statutory EBITDA and NPAT
Reconciliation of Operating to Statutory EBITDA and NPAT AUD $m FY23 FY22 Change ($) Change (%) Operating NPAT 17.8 21.7 (3.8) (17.6%) Non operating transactions net of tax Remeasurement of contingent consideration liabilities 15.8 - Transaction and integration benefits/(costs) (4.9) (5.5) Share bas
Slide 25: Supplementary Information – Items Below EBITDA
Supplementary Information – Items Below EBITDA AUD $m FY23 Comments Operating items below EBITDA (excluding tax) Depreciation of property, plant & equipment 25.4 Depreciation charge on PP&E and capitalised software Depreciation of right of use assets 15.9 Formerly treated as lease expense prior to t
Slide 26: Disclaimer
Disclaimer Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect Integral Diagnostics Limited (IDX) current intentions, plans, expectations, assumptions a
Slide 27: Integral Diagnostics
( integral DIAGNosTics