Australian Clinical Labs Ltd · ASX:ACL
Australian Clinical Labs — FY2021 Earnings Presentation
26 slides from Australian Clinical Labs's earnings presentation, August 2021
Slide 1: FY21 Full year results presentation
FY21 Full year results presentation Melinda McGrath CEO and Executive Director James Davison CFO August 2021 0
Slide 2: Contents
Contents • FY21 Highlights • About ACL • ESG Focus Areas • FY21 Results • COVID-19 Response • FY21 Operational Highlights • Clinical Trials and Precision Medicine • Growth Strategy • 1H FY22 Guidance • Key Highlights • Appendix 1
Slide 3: FY21 highlights
FY21 highlights The board and management would like to thank its staff and other stakeholders for their support during FY21 • ACL continues to play a central role in Australia’s response to safeguarding the community during the COVID-19 (COVID) pandemic • FY21 represented a milestone year with solid
Slide 4: A leading Australian private pathology provider targeting global best practice levels
A leading Australian private pathology provider targeting global best practice levels 90+ 988 30 specialist Hospitals serviced, Approved Collection Centres skin cancer clinics, diagnosing ~15% of a leading private provider in 80+ public & private hospitals NATA accredited all reported melanomas labo
Slide 5: ACL's journey to global best practice for efficiency, lab technology and IT
ACL’s journey to global best practice for efficiency, lab technology and IT Acquisition / Integration Investment & Innovation Strong Foundations for Growth 2015 2018 2019 2020 2020 Acquisitions • Enhanced operating leverage by • A leader in service, science and tech • July 2015: Healthscope AU
Slide 6: ESG is central to operations and strategy
ESG is central to operations and strategy ACL 2021 Sustainability Report, including Sustainable Development Goals (SDGs) to be published in September Example Focus Areas Approach Measures Scope 1 and 2 emissions to be measured, published in 2022. Minimise GHG emissions in Scope 1 and 2 results, Tota
Slide 7: FY21 Results Overview
FY21 Results Overview James Davison, CFO 6
Slide 8: FY21 pro forma profit and loss
FY21 pro forma profit and loss ACL achieved strong growth on FY20, and exceeded both Prospectus forecasts and revised guidance from 3 June 2021 FY21 FY20 Growth AUD in millions Pro forma Prospectus Pro forma Prospectus FY20 Total Revenue 674.4 647.0 522.8 4.2% 29.0% EBITDA 230.7 207.7 116.3 11.1% 98
Slide 9: FY21 profit and loss and revenue by half year
FY21 profit and loss and revenue by half year 2H FY21 NPAT of $45.4m up 46.1% compared to Prospectus forecast Profit and Loss Pro Forma Pathology Revenue by Half Year Pro forma Pro forma 400.0 AUD in millions 2H FY20 1H FY21 2H FY21 350.0 330.1 324.8 Non-COVID-19 revenue 233.2 251.2 265.9 304.3 COVI
Slide 10: FY21 pro forma cash flow
FY21 pro forma cash flow ACL generated Cash EBITDA to Operating cash flow of more than 100% FY21 FY20 Growth AUD in millions Pro forma Prospectus Pro forma Prospectus FY20 EBITDA 230.7 207.7 116.3 11.1% 98.4% Non-cash items 1.7 0.8 0.9 Property related payments AASB 16 (87.2) (86.8) (82.4) Cash EBIT
Slide 11: FY21 balance sheet
FY21 balance sheet Strengthened balance sheet, with net debt excluding lease liabilities decreasing from $93.3m to $64.1m FY21 AUD in millions Actual Prospectus Cash and cash equivalents 35.2 10.0 Comments Trade and other receivables 63.0 53.7 Inventories 13.4 14.2 • Cash balance $35.2m as at 30 Jun
Slide 12: Australian pathology market is large and growing
Australian pathology market is large and growing Australian pathology market (excluding COVID) is forecast to grow between ~4% to ~6% p.a.(1), underpinned by long term sustainable growth drivers Growth of Pathology Services in Australia COVID-19 testing is expected to add to the size of the Austra
Slide 13: FY21 Operational Achievements, Strategy
FY21 Operational Achievements, Strategy Melinda McGrath, CEO, Executive Director 12
Slide 14: Operational achievements: COVID response, rapid, efficient and effective
Operational achievements: COVID response, rapid, efficient and effective ACL has played a central role in Australia’s response to COVID, with essential pathology and other clinical healthcare services ACL Role in COVID-19 Response • Central role in Australia’s response to COVID, with essential patho
Slide 15: Operational achievements realised in FY21
Operational achievements realised in FY21 ACL has continued to invest in operational improvements and innovation throughout the year Operational Achievements First to market with bespoke logistics and courier automation platform: - Route optimization that has reduced unnecessary stops and improved
Slide 16: Depth in advanced pathology services
Depth in advanced pathology services ACL continues to develop its reputation as an advanced pathology services provider with investment in clinical trials and precision medicine Clinical Trials Precision Medicine • Major diagnostic service provider for Phase 1 Clinical Trials, and • NATA Accredited
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 Improvements Embedded Revenue Acquisitions in Opportunities Increase position in New South Wales specialist and gene
Slide 18: 1H FY22 guidance update and dividend policy
1H FY22 guidance update and dividend policy The Company has upgraded its 1H FY22 Revenue and NPAT forecasts as outlined in the Prospectus Forecast Pro forma Prospectus Growth Upgrade AUD in millions 1H FY21 2H FY21 1H FY22 1H FY22 1H FY21 Prospectus Total Revenue 333.8 340.6 307.4 362.4 - 375.5 9% -
Slide 19: Key highlights
Key highlights Excluding COVID, Australian pathology is estimated to be a A$5.8 billion market(1), anticipated to grow between 1 4.1% and 5.7% over the five years to FY2025(2) 2 Targeting global best practice levels in terms of efficiency, lab technology and information systems 3 Established a natio
Slide 20: Q&A
Q&A AUSTRALIAN “Clinicalabs
Slide 21: Appendix
Appendix AUSTRALIAN “Clinicalabs
Slide 22: Reconciliation of pro forma P&L to statutory accounts
Reconciliation of pro forma P&L to statutory accounts FY21 FY20 Growth AUD in millions Reported Prospectus Reported Prospectus FY20 Statutory Revenue 644.7 618.2 519.5 4.3% 24.1% Pro forma adjustments (prospectus) 28.9 28.9 3.3 Other pro forma adjustments 0.9 - - Pro Forma Revenue 674.4 647.0 522.8
Slide 23: Reconciliation of pro forma cash flow to statutory accounts
Reconciliation of pro forma cash flow to statutory accounts FY21 FY20 Growth AUD in millions Reported Prospectus Reported Prospectus FY20 Statutory net cash flow 0.4 (19.2) 30.9 Pro forma adjustments (prospectus) 195.8 195.8 74.0 Income tax paid 2.8 - - Financing and investing activities 2.3 - - Oth
Slide 24: FY21 indebtedness
FY21 indebtedness Conservative net leverage provides significant headroom and financial flexibility FY21 31-Dec-20 AUD in millions Actual Prospectus Non-current borrowings New Bank Facilities (99.5) (103.6) Current Borrowings New Bank Facilities 0.2 0.3 Total debt excluding lease liabilities (99.3)
Slide 25: Reconciliation AASB 16 to AASB 117
Reconciliation AASB 16 to AASB 117 FY21 FY20 Growth AUD in millions Pro forma Prospectus Pro forma Prospectus FY20 Pro forma EBITDA (AASB 16) 230.7 207.7 116.3 11.1% 98.4% Less: Operating lease rentals (AASB 117) (87.2) (86.8) (82.4) Pro forma EBITDA (AASB 117) 143.5 120.9 33.9 18.7% 323.4% Pro form
Slide 26: 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
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