Australian Clinical Labs Ltd · ASX:ACL
Australian Clinical Labs — H1 2023 Earnings Presentation
28 slides from Australian Clinical Labs's earnings presentation, Feb 20, 2023
Slide 1: ACL 1H23 Financial Results
ASX Announcement Australian Clinical Labs Limited ABN 94 645 711 128 Registered Office: 1868-1892 Dandenong Road Clayton VIC 3168 Australia clinicallabs.com.au Monday, 20 February 2023 ACL 1H23 FINANCIAL RESULTS The following announcements to the market are attached: Appendix 4D 1H23 full year finan
Slide 2: ACL FY23 First Half Results
ASX Announcement Australian Clinical Labs Limited ABN 62 006 823 089 Registered Office: 1868-1892 Dandenong Road Clayton VIC 3168 Australia clinicallabs.com.au Monday, 20 February 2022 ACL FY23 First Half Results Strong performance, demonstrated flexibility and underlying business strength Declares
Slide 3: CEO comments and interim dividend for 1H FY23
(previously forecast to be achieved 24 months’ post-acquisition). Now focus is on embedding changes and benchmarking integrated service to ensure efficiency. • ACL removed the majority of COVID related costs by Sept 2022 quarter. ACL management actively manages costs to volume, driving a permanent p
Slide 4: Webcast registration and contact details
Participants can register for the webcast by accessing this link: [new link to be provided] An archive of the briefing will be available afterwards at: https://investors.clinicallabs.com.au/ – ENDS – This announcement was authorised for release to ASX by the Board of Directors of ACL. For further in
Slide 5: FY23 First Half Results Presentation
FY23 First Half Results Presentation Melinda McGrath CEO and Executive Director James Davison CFO February 2023 0
Slide 6: Contents
Contents • Overview • 1H FY23 Financials Results • Investment Highlights • Outlook • Appendix 1
Slide 7: Overview
Overview Melinda McGrath, CEO and Executive Director 2
Slide 8: 1H FY23 Results – Financial Highlights
1H FY23 Results – Financial Highlights ACL achieved EBITDA of $99.8m (28% margin) and EBIT of $38.9m (11% margin) demonstrating proactive cost management in a volatile environment. Medlab integration near complete with run rate performance of >$20m EBIT achieved by end of 1H FY23. January 2023 non-C
Slide 9: 1H FY23 Results – Operational & Strategic Highlights
1H FY23 Results – Operational & Strategic Highlights Medlab integration near complete, majority of COVID-related costs removed, major LIS upgrade completed providing material capacity to scale • Medlab integration completed ahead of schedule, with annualised EBIT performance post synergies exceeding
Slide 10: 1H FY23 Results – ESG highlights
1H FY23 Results – ESG highlights Second 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
Slide 11: Financial Results Overview
Financial Results Overview James Davison, CFO 6
Slide 12: 1H FY23 Profit and Loss
1H FY23 Profit and Loss Across 1H, ACL achieved EBITDA of $99.8M (28% margin) and NPAT of $25.5m (7% margin). ACL was able to rapidly reset its cost base and maintain industry leading margins as the pathology industry transitioned away from COVID testing Actual Actual Actual Actual AUD in millions 1
Slide 13: 1H FY23 Cash flow
1H FY23 Cash flow ACL generated operating cash flow of $29.2m Actual Actual Actual Actual AUD in millions 1H FY23 1H FY22 2H FY22 CY22 FY22 EBITDA 99.8 239.3 133.4 233.2 372.7 Non-cash items (4.2) 0.4 0.9 (3.3) 1.3 Property related payments AASB 16 (57.2) (47.1) (54.8) (112.1) (102.0) Cash EBITDA 38
Slide 14: 1H FY23 Balance Sheet
1H FY23 Balance Sheet Net Debt was $49.8m (0.4x of LTM EBITDA) as ACL maintained a conservative capital structure during this transition period to a post COVID environment Comments • Cash balance of $16.1m as at 31 December 2022 • Trade and other receivables decreased to $75.6m as the industry trans
Slide 15: Investment Highlights
Investment Highlights Melinda McGrath, CEO and Executive Director 10
Slide 16: Key Investment Highlights (1/2)
Key Investment Highlights (1/2) Since listing, ACL has consistently delivered above market growth and strong margin performance through a combination of disciplined capital management and the strength of its operating model Overall Outperformance to prospectus: Materially outperformed prospectus f
Slide 17: Key Investment Highlights (2/2)
Key Investment Highlights (2/2) Since listing, ACL has consistently delivered above market growth and strong margin performance through a combination of disciplined capital management and the strength of its operating model Deep experience in acquisitions: Strong acquisition track record, completi
Slide 18: Organic market growth and embedded revenue opportunities
Organic market growth and embedded revenue opportunities ACL has a well-defined strategy to drive continued growth focussed on geographical expansion in NSW and Qld, strategic adjacencies such as clinical trials, major contract wins and further acquisitions Maximise revenue benefit of Medlab acqui
Slide 19: Well-defined business improvement strategy – Operational performance improvements and cost management
Well-defined business improvement strategy – Operational performance improvements and cost management ACL continues to be focussed on driving increased operational efficiency through various levers including leveraging the benefits of its single integrated LIS, further courier optimisation and vario
Slide 20: Performance since listing
ACL1 N/D = Results not yet disclosed at time of Australian-only competitor (listed)2 release Australian and international competitor (listed)3 Performance since listing Since listing ACL has delivered stronger margins than its larger Australian-only listed competitor, and higher returns on capital a
Slide 21: ACL's relative performance and valuation metrics
ACL’s relative performance and valuation metrics ACL’s performance is still to be reflected in its valuation metrics relative to other healthcare stocks given its more recent listing and “COVID fog”, which has only lifted since July 2022 EV/NTM EBIT (AASB117)1 21.2 x 21.6 x 18.6 x 16.2 x 16.7 x 15.9
Slide 22: ACL Operating Model
ACL Operating Model ACL believes its strong financial performance is underpinned by an operating model driven by the strength of its clinical service, management culture and its internal systems and processes 4 Disciplined capital 3 management • Strong capital management Robust internal processes pr
Slide 23: Outlook
Outlook Melinda McGrath, CEO and Executive Director 18
Slide 24: Outlook for 2H FY23
Outlook for 2H FY23 In 2H FY23, ACL will continue to focus on ensuring Medlab synergies hit the bottom line, capturing growth in non- COVID revenue, growing market share in NSW and Queensland post Medlab and Sun Doctors acquisitions and delivering ESG performance • In 2H FY23, ACL will focus on: • E
Slide 25: Appendix
Appendix AUSTRALIAN “Clinicalads
Slide 26: 1H FY23 indebtedness
1H FY23 indebtedness Conservative net leverage provides significant headroom and financial flexibility Dec-23 Jun-22 M'ment AUD in millions Actual Actual Non-current borrowings Redrawable Term Facility ($100m) (65.9) - Current Borrowings Working Capital Facility ($20m) - - Total debt excluding lease
Slide 27: Reconciliation AASB 16 to AASB 117
Reconciliation AASB 16 to AASB 117 Actual Actual Actual Actual AUD in millions 1H FY23 1H FY22 2H FY22 CY22 FY22 Pro forma EBITDA (AASB 16) 99.8 239.3 133.4 233.2 372.7 Less: Operating lease rentals (AASB 117) (57.2) (47.1) (54.8) (112.0) (102.0) Pro forma EBITDA (AASB 117) 42.6 192.1 78.6 121.2 270
Slide 28: 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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