Healius Limited · ASX:HLS
Healius — Investor Presentation (November 2023)
29 slides from Healius's investor presentation, Nov 20, 2023
Slide 1: Capital Structure Reset and Equity Raise
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Capital Structure Reset and Equity Raise Investor Presentation 20 November 2023
Slide 2: Important Notice and Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Important Notice and Disclaimer Important notice and disclaimer The following Important Notice and Disclaimer applies to this investor presentation (Presentation) and you are therefore advised to read this carefully before making any use of this P
Slide 3: Important Notice and Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Important Notice and Disclaimer Forward-looking statements This Presentation contains certain “forward-looking statements”. The words “forecast”, “estimate”, “likely”, “anticipate”, “believe”, “expect”, “project”, “opinion”, “predict”, “outlook”,
Slide 4: Important Notice and Disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Important Notice and Disclaimer The Underwriter and its affiliates are a full service financial institution engaged in various activities, which may include trading, financing, corporate advisory, financial advisory, investment management, investm
Slide 5: Contents
Contents 1 Equity raising and balance sheet reset 2 Trading update and outlook 3 Equity raising details 4 Key risks 5 Appendices Investor Presentation – 20 November 2023 5
Slide 6: Creating a stronger Healius
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Creating a stronger Healius Today, Healius announces an approximately $187 million equity raising and covenant relief secured through to June 2024 • Fully underwritten1 non-renounceable entitlement offer to raise approximately $187 million (Entitl
Slide 7: Balance sheet reset
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Balance sheet reset Equity raising will reduce Healius’ FY2023PF gearing2,3 to 2.0x underlying EBITDA Net debt ($m) – FY2023A and Pro Forma1,3 • Proceeds from the Entitlement Offer will be used to reduce Healius’ net debt and reset its balance she
Slide 8: Positioning for recovery
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Positioning for recovery Capital structure initiatives will position Healius to capitalise on an expected recovery in underlying industry volumes • Entitlement Offer and debt covenant relief follows the implementation of an extensive cost reset pr
Slide 9: Contents
Contents 1 Equity raising and balance sheet reset 2 Trading update and outlook 3 Equity raising details 4 Key risks 5 Appendices Investor Presentation – 20 November 2023 9
Slide 10: Trading update
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Trading update We provide the following update on market trading for the first quarter of FY2024 • Core Pathology volumes grew 6%1,2 vs pcp for the quarter ‒ Weekly volumes improving noticeably across October and into the first 3 weeks of November
Slide 11: Outlook to FY2024
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Outlook to FY2024 Based on trading conditions experienced in FY2024 to-date, Healius provides the following guidance Guidance 1H vs 2H earnings – context and key assumptions Based on the assumptions set out to the right • Revenue for the Group is
Slide 12: Contents
Contents 1 Equity raising and balance sheet reset 2 Trading update and outlook 3 Equity raising details 4 Key risks 5 Appendices Investor Presentation – 20 November 2023 12
Slide 13: Equity Raising details
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising details • Fully underwritten1 ~A$187 million 1 for 3.65 pro rata accelerated non-renounceable entitlement offer (Entitlement Offer) Offer structure and • Healius will issue ~156.1 million fully paid ordinary shares (New Shares) unde
Slide 14: Equity Raising timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Equity Raising timetable Event Date1 Trading Halt, Announcement of Equity Raising Monday, 20 November 2023 Monday, 20 November 2023 – Institutional Entitlement Offer bookbuild Tuesday, 21 November 2023 Announcement of results of the Institutional
Slide 15: Contents
Contents 1 Equity raising and balance sheet reset 2 Trading update and outlook 3 Equity raising details 4 Key risks 5 Appendices Investor Presentation – 20 November 2023 15
Slide 16: Key risks – Business risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks – Business risks In considering the Entitlement Offer, Healius Shareholders should be aware that an investment in Healius carries a number of risks, some of which are specific to Healius (that is, matters that relate directly to Healius’
Slide 17: Key risks – Business risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks – Business risks Pathology laboratories and diagnostic imaging facilities are required to be licensed under various pieces of legislation. These licenses are generally subject to regular review and to revocation in certain circumstances.
Slide 18: Key risks – Business risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks – Business risks The current inflationary environment has negatively impacted on Healius Group’s cost base due to, among other things, increases in wages, property rents, consumables, third-party service costs and other overhead expenses
Slide 19: Key risks – Business risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks – Business risks Healthcare operators, including Healius through its provision of pathology and imaging services, are exposed to the risk of medical indemnity or like claims and litigation. While all laboratory test methods must meet sci
Slide 20: Key risks – Business risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks – Business risks As a diagnostic and healthcare provider, Healius obtains sensitive clinical and financial information from its customers and patients. Healius understands that protection of privacy of individuals whose personal informat
Slide 21: Key risks – General risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks – General risks Pandemics such as COVID-19 have impacted demand for traditional healthcare services. While Healius has adapted its service delivery to account for this shift in demand, future pandemics will continue to pose a significant
Slide 22: Key risks – Offer risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks – Offer risks There is a risk that the amount of proceeds that may be raised by Healius may be adversely impacted by one or more events which may or may not be within the control of Healius including in respect of the underwritten amount
Slide 23: Key risks – Offer risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks – Offer risks v. a cleansing notice issued in connection with the Entitlement Offer is or becomes defective, or Healius gives or is required to give a corrective statement under the Corporations Act and, in each case, that defective clea
Slide 24: Key risks – Offer risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Key risks – Offer risks For details of the fees payable to the Underwriters, see the Appendix 3B released to ASX on 20 November 2023. Healius also gives certain representations, warranties and undertakings to the Underwriter and an indemnity to th
Slide 25: Contents
Contents 1 Equity raising and balance sheet reset 2 Trading update and outlook 3 Equity raising details 4 Key risks 5 Appendices Investor Presentation – 20 November 2023 25
Slide 26: ACL Takeover Offer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES ACL Takeover Offer Healius is still subject to a highly conditional scrip off-market takeover bid (Takeover Offer) from Australian Clinical Labs Limited (ACL). For the reasons set out in the Target’s Statement issued by Healius in response to the
Slide 27: International Offer Restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person,
Slide 28: International Offer Restrictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES International Offer Restrictions Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this docum
Slide 29: healius.com.au
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES healius.com.au