Slide 1: 1HFY22 Results
1HFY22 RESULTS Dr. Ian Kadish (MD & CEO) Craig White (CFO) 23 February 2022 “Good Medicine is Good Business”
Slide 2: IDX Vision & Values
IDX VISION & VALUES OUR VISION a healthier world PURPOSE deliver the best health outcomes for our patients fe) Y foe) oo VALUES v patients first medical leadership everyonecounts create value embrace change PATIENTS ARE AT THE HEART IMPROVING OUTCOMES WITH ‘WE WORK SAFELY, INCLUSIVELY DELIVER SUSTAI
Slide 3: Delivering on Our Values – 1HFY22
DELIVERING ON OUR VALUES – 1HFY22 Patients Medical Everyone Create Embrace First Leadership Counts Value Change • Served 484,000 • 232 reporting • 1,595 employees • Operating NPAT • Managed patients radiologists declined by 21.7% to workflows, • Developed a $13.0m in a COVID- personnel and • Perform
Slide 4: 1HFY22 Financial Highlights
1HFY22 FINANCIAL HIGHLIGHTS 5.7% growth in operating revenue despite COVID-19 impacting near term performance 48.7% 21.7% 7.1% 22.8% 5.7% 25.3% Net debt decline in decline in decline in decline in increase decline /LTM statutory operating operating operating in in EBITDA NPAT NPAT(1) EBITDA(2) EPS(3
Slide 5: DI Industry COVID-19 Impact: Australia
DI INDUSTRY COVID-19 IMPACT: AUSTRALIA Industry growth rates, on a 12 month rolling basis, came back strongly in CY21, however declined in the latter part of the year with the onset of the Omicron variant of COVID-19 Source: Medicare Australia Statistics by Broad Type of Service (BTOS) for the State
Slide 6: Shareholder Returns
SHAREHOLDER RETURNS Strong track record of growing shareholder returns. Fully franked interim dividend of 4.0 cps declared with a 70% payout ratio, in line with historical levels 90 Operating EBITDA - million 80 70 60 84.0 50 75.7 40 53.0 30 33.5 38.1 39.5 20 FY 17 FY 18 FY 19 FY 20 FY 21 1H 22 IDX
Slide 7: 1HFY22 Financial Performance
1HFY22 FINANCIAL PERFORMANCE
Slide 8: Results for 1HFY22
RESULTS FOR 1HFY22 $ million 1HFY22 1HFY21 Change ($) Change (%) Operating revenue(1) 180.5 170.7 9.8 5.7% Operating EBITDA(2) 39.5 42.5(4) (3.0) (7.1%) EBITDA operating margin 21.9% 24.9%(5) (3.0%) Operating EBITA 23.4 27.2(6) (3.8) (14.0%) Operating NPAT 13.0 16.6(7) (3.6) (21.7%) Operating Dilute
Slide 9: Revenue
REVENUE Operating revenue up 5.7% to $180.5m Solid underlying growth in Australia, despite ongoing COVID-19 impacts, driven by new sites, investment in new equipment and additional contribution from acquisitions. IDX organic revenue growth in Australia of 5.0% compares favourably to the industry ave
Slide 10: Operating Expenditure
OPERATING EXPENDITURE Operating costs increased by 2.9% ($5.3m) as a % of revenue(1), largely driven by increasing employee costs related to COVID-19. The Company is committed to maintaining and supporting our excellent team of radiologists and related medical specialists and technical staff through
Slide 11: Capital Management
CAPITAL MANAGEMENT Strong balance sheet to support on-going growth strategy • 1HFY22 net debt of $176.8m (1HFY21: $137.3m) $ million 31 Dec 21 30 Jun 21 31 Dec 20 Cash and cash equivalents 55.6 62.2 68.8 • 2.5x EBITDA prior to one off transactions as at 31 December 2021 (1HFY21 1.6x) (pre-AASB16) Tr
Slide 12: Cashflow and Cash Conversion
CASHFLOW AND CASH CONVERSION Solid free cash flow to fund and support growth initiatives $ million 1HFY22 1HFY21 • Normalised free cash flow conversion of 62.8% (1HFY21 78.1%) – 73.4% excluding replacement Operating EBITDA 39.5 42.5 capex Non-cash items in EBITDA (0.4) 3.4 • The application of AASB
Slide 13: Capital Expenditure
CAPITAL EXPENDITURE Continuing capex investment in line with IDX’s growth strategy $ million(1) 1HFY22 1HFY21 1HFY20 Replacement 4.2 6.7 5.3 Growth 10.4 3.6 11.2 Total 14.6 10.3 16.5 Depreciation 9.8 9.5 6.5 1HFY22 Replacement capex of $4.2m Replacement capex reflects capital sensitivity requirement
Slide 14: Regulatory Update
REGULATORY UPDATE
Slide 15: Regulatory Environment Activity
REGULATORY ENVIRONMENT ACTIVITY Australia: MRI Licences • As at the date of this presentation no further licences or plans for deregulation of MRI licences have been announced. MRI licences and/or changes may occur in a Federal election year May 2021 Budget • Indexation across 90% of MBS items, equa
Slide 16: Strategy Update
STRATEGY UPDATE
Slide 17: Management's Strategy – Good Medicine Is Still Good Business
MANAGEMENT’S STRATEGY – GOOD MEDICINE IS STILL GOOD BUSINESS Organic and inorganic growth strategy and focus remains the same despite COVID-19 impacting near term performance 1 Grow existing business and margin 2 Strategic acquisitions Strategy Accelerate use of digital and AI Drive organic technolo
Slide 18: Questions?
QUESTIONS?
Slide 19: Appendices
APPENDICES
Slide 20: IDX Operates in Key Geographic Markets – December 2021
IDX OPERATES IN KEY GEOGRAPHIC MARKETS – DECEMBER 2021 Western Victoria Queensland New Zealand Australia Total IDX Queensland Geographic Market Victoria Victoria & NSW Queensland Western Australia New Zealand & NSW Ballarat, Geelong, Albury, Wodonga, Sunshine Coast, Gold Coast, Warrnambool and Wanga
Slide 21: Reconciliation of Operating to Statutory EBITDA
RECONCILIATION OF OPERATING TO STATUTORY EBITDA $ million 1HFY22 1HFY21 Change ($) Change (%) Operating NPAT 13.0 23.2 (10.2) (44.0%) Non operating transactions net of tax Transaction and integration costs (0.7) (0.5) Share based payments (1.1) (1.0) Amortisation of customer contracts (1.0) (1.8) St
Slide 22: 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 23: Slide 23