Australian Clinical Labs Ltd · ASX:ACL
Australian Clinical Labs — FY2023 Earnings Presentation
23 slides from Australian Clinical Labs's earnings presentation, Aug 22, 2023
Slide 1: FY23 Results Presentation
FY23 Results Presentation Melinda McGrath CEO and Executive Director James Davison CFO August 22nd 2023 0
Slide 2: Contents
Contents • Overview • FY23 Financials Results • Operational Update • Outlook • Appendix 1
Slide 3: Overview
Overview Melinda McGrath, CEO and Executive Director 2
Slide 4: FY23 Results – Financial Highlights
FY23 Results – Financial Highlights FY23 results - Disciplined operational execution and continued strong financial performance. EBIT 1 $70.3m in line with guidance of $68-74m • Key highlights from FY23 include: - Revenue of $697.1m - EBITDA1 of $193.0m (27.7% margin) - EBIT1 of $70.3m (10.1% margin
Slide 5: Outlook: Market Growth
Outlook: Market Growth Market Non-COVID pathology episodes are 10 to 15% below trend (>$50M impact on ACL revenue). There are early signs of recovery towards the trend as market drivers improve Comments National Pathology Episodes (ex COVID) #m, FY10 – FY23 COVID-19 • There has been a delay in the r
Slide 6: FY23 Results – Operational, Clinical and Strategic Highlights
FY23 Results – Operational, Clinical and Strategic Highlights Removed COVID related costs in a timely and disciplined manner, completed the integration of Medlab ahead of plan and continued focus on clinical innovation as a core strategy • Key operational highlights in FY23 include: • Disciplined wi
Slide 7: FY23 Results – ESG highlights
FY23 Results – ESG highlights Third year of execution of ACL’s ESG strategy continues to deliver strong performance across all areas of our ESG Mission Environmental Social Corporate Governance Carbon Emissions Injury reduction Board/management composition 1.06kg CO2 per episode down from 1.4kg in F
Slide 8: Financial Results Overview
Financial Results Overview James Davison, CFO 7
Slide 9: FY23 Profit and Loss
FY23 Profit and Loss ACL delivered a strong underlying result for FY23, despite the unwinding of COVID revenue, by actively managing its cost structure and focus on non-COVID revenue growth as the market returns to trend growth • In FY23, ACL generated $697.1m of revenue, $193.0m of EBITDA1, $70.3m
Slide 10: FY23 Cash flow
FY23 Cash flow ACL generated strong operating cash flow (after Capex) of $52.2m with a 80% cash conversion ratio Actual Actual Actual AUD in millions FY23 FY22 1H FY23 2H FY23 EBITDA 184.7 372.7 99.8 84.9 Non-cash items (3.1) 1.3 (4.2) 1.1 Property related payments AASB 16 (116.2) (102.0) (57.2) (59
Slide 11: FY23 Balance Sheet
FY23 Balance Sheet Net Debt was $45.7m (0.7x LTM AASB-117 EBITDA) as ACL maintained low levels of gearing; strong balance sheet with head room for growth initiatives and dividend distribution Comments • Cash balance of $20.0m as at 30 June 2023 • Trade and other receivables decreased to $73.7m as th
Slide 12: Growth and Strategic Initiatives
Growth and Strategic Initiatives Melinda McGrath, CEO and Executive Director 11
Slide 13: Digitisation highlights
Digitisation highlights ACL continues to enhance its suite of customer friendly e-Health products including eOrders, e-Downloads and eResults. SMS eRequests is also now available for patients • ACL’s has rolled out eResults which improve clinical outcomes: • SMS eRequests allow patients to receive e
Slide 14: Partnership with Geneseq
Partnership with Geneseq ACL made a strategic investment in Geneseq in 2018 to develop a multi tissue and blood (plasma) genomic test for melanoma ACL/Geneseq partnership Major Milestone Achieved • Test has achieved very high validation scores. In July 23, Geneseq published its ground-breaking resea
Slide 15: Genetic testing highlights
Genetic testing highlights As a part of its growth plan, ACL has continued its commitment to bring new genetic tests to Australia. ACL has already secured sole provider status of EndoPredict and Liquid Biopsy • ACL is the only pathology provider in Australia currently offering • Aspect Liquid Biopsy
Slide 16: Superior Operating Model
Superior Operating Model ACL believes its strong financial performance is underpinned by its superior operating model driven by the strength of its internal systems, processes and clinical and management culture 4 Strong management culture 3 Disciplined capital • Clinical and management culture, whi
Slide 17: Well-defined growth strategy
Well-defined growth strategy ACL’s mission is to empower decision making that saves and improves patients’ lives Strategic Acquisitions Footprint Expansion Operational Performance Continue to progress Improvements takeover bid for Embedded Healius Revenue Continue to improve Opportunities and gr
Slide 18: Outlook
Outlook Melinda McGrath, CEO and Executive Director 17
Slide 19: Outlook for FY24
Outlook for FY24 In FY24, ACL will continue to focus on capturing above market revenue growth, delivering operating efficiencies and its ESG performance • In FY24, ACL will focus on: • Continuing to capture above market growth in revenue through disciplined new ACC openings, new test initiatives and
Slide 20: Appendix
Appendix AUSTRALIAN “Clinicalabs
Slide 21: 1H FY23 indebtedness
1H FY23 indebtedness Conservative net leverage provides significant headroom and financial flexibility Key terms of banking facilities: - Margin of 1.5% (when < 1.5x EBITDA) - Net leverage covenant < 3.5x - Fixed charge cover ratio > 1.45x 20
Slide 22: Reconciliation AASB 16 to AASB 117
Reconciliation AASB 16 to AASB 117 21
Slide 23: Important notice and disclaimer
Important notice and disclaimer Summary information Certain figures, amounts, percentages, estimates, calculations of value and This Presentation contains summary information about Australian Clinical Labs fractions provided in this Presentation are subject to the effect of rounding. Limited (ACN 64
Australian Clinical Labs — FY2023 Earnings Presentation on 6ix