Life Healthcare Group Holdings Limited · JSE:LHC
Life Healthcare — J.P. Morgan SA Healthcare Day 2022
25 slides from Life Healthcare's conference presentation, Mar 15, 2022
Slide 1: J.P. Morgan SA Healthcare Day
J.P. Morgan SA Healthcare Day 15th March 2022 1
Slide 2: Alliance Medical Group
ALLIANCE MEDICAL GROUP A leading independent provider of imaging services across Europe J.P. Morgan SA Healthcare Day 15 March 2022 2
Slide 3: Agenda
J.P. MORGAN HEALTHCARE DAY | ALLIANCE MEDICAL GROUP AGENDA ▪ AMG in the broader Life Healthcare Group ▪ Why diagnostics? ▪ AMG history ▪ What is PET-CT? ▪ AMG’s unique vertically integrated molecular imaging business ▪ UK PET-CT footprint ▪ Opportunities for growth within UK and Europe J.P. Morgan S
Slide 4: Group Overview: Continued progress in diversifying revenue and mix
GROUP OVERVIEW CONTINUED PROGRESS IN DIVERSIFYING REVENUE AND MIX Normalised Acute versus Revenue (%) EBITDA (%) non-acute revenue (%) 27% 28% 28% 29% 23% 23% 28% 30% 36% 30% 38% 39% 73% 72% 72% 71% 77% 77% 72% 70% 64% 70% 62% 61% FY2018 FY2019 FY2020 FY2021 FY2018 FY2019 FY2020 FY2021 FY2018 FY2019
Slide 5: Why Diagnostics?
WHY DIAGNOSTICS? ▪ Global average life expectancy increased by 5.5 years between 2000 and 2016 (WHO) ▪ By 2050, the number of elderly people per 100 working-age people will nearly triple—from 20 in 1980, to 58 in 2060 ▪ In OECD countries, the old-age to working-age ratio will almost double in the ne
Slide 6: Changing Disease Burden
CHANGING DISEASE BURDEN ▪ Noncommunicable diseases (NCDs) like heart disease, stroke, cancer, diabetes, chronic respiratory diseases and dementia are the biggest health issues for adults over 60 ▪ Increasing age increases number of years living with disability – increasing incidence of comorbidity ▪
Slide 7: Increasing Global Role for Diagnostics
INCREASING GLOBAL ROLE FOR DIAGNOSTICS ▪ Increased disease burden ▪ New population based diagnostic programmes and the move to non-invasive screening ▪ Personalised chemotherapy therapies ▪ Increased diagnostic reach ▪ New isotope ligands (e.g. prostate cancer) ▪ Theranostics ▪ Digital surgery and p
Slide 8: UK Diagnostics: Demand Remains High and Unmet
UK DIAGNOSTICS | DEMAND REMAINS HIGH AND UNMET NHS England CT, MRI and PET-CT (RHS) annual scan CAGR CAGR activity 2012-20 2012-21 ▪ In the UK, waiting lists for diagnostic 8 000 000 300 000 imaging continue to remain elevated with CT 8.0% 6.1% >20% of patients waiting over 6 weeks (vs MRI 6 000 000
Slide 9: AMG Overview: History
AMG OVERVIEW | HISTORY ▪ 30 years history of providing high clinical quality, efficient and cost-effective imaging solutions ▪ Centre of excellence for diagnostic imaging, molecular imaging and radiopharmacy production ▪ Key partner to the NHS (UK & Northern Ireland), ASL (Italy) and HSE (Republic o
Slide 10: AMG Overview: UK and European Footprint
AMG OVERVIEW | UK AND EUROPEAN FOOTPRINT UK Italy Ireland Other geographies ▪ DI1 static sites 36 Spain Netherlands Germany Finland ▪ PET-CT national ▪ Owned clinics 34 contract sites 38 ▪ Static sites 7 ▪ Operating sites 27 ▪ Mobiles 57 ▪ Cyclotron site 1 Estonia Norway Switzerland Austria ▪ Cyclot
Slide 11: Operating in a Growth Environment
AMG OVERVIEW | HISTORY OPERATING IN A GROWTH ENVIRONMENT AMG financial snapshot: ▪ 8% revenue CAGR (2013-21) ▪ 10% EBITDA CAGR (2013-21) ▪ Faster growth in PET-CT J.P. Morgan SA Healthcare Day 15 March 2022 11
Slide 12: What is PET-CT?
AMG OVERVIEW | WHAT IS PET-CT? X-ray Ultrasound CT MRI PET Standard scan 3D scan J.P. Morgan SA Healthcare Day 15 March 2022 (Source: Kings College London brain scan database) 12
Slide 13: PET-CT Technology Combines Two Powerful Imaging Modalities
AMG OVERVIEW | WHAT IS PET-CT? PET-CT TECHNOLOGY COMBINES TWO POWERFUL IMAGING MODALITIES This example shows an active tumour in CT Coronal PET Coronal PET-CT Fusion the adrenal gland (Courtesy von Schulthess, University of Zurich) J.P. Morgan SA Healthcare Day 15 March 2022 13
Slide 14: Radioisotope Production Steps
AMG OVERVIEW | WHAT IS PET-CT? RADIOISOTOPE PRODUCTION STEPS Cyclotron Synthesis PET-CT facility Result 18F-Fluoride Tracer Target Cycl otron Starts 01:00 to Di s pens i ng & s teri l i sing FDG s tarts Synthes i s of 18F FDG s tarts at at 04:30, to put the FDG i n s teri l e produce the F18 radi oi
Slide 15: Vertically Integrated PET-CT Model
AMG OVERVIEW | VERTICALLY INTEGRATED PET-CT MODEL J.P. Morgan SA Healthcare Day 15 March 2022 15
Slide 16: Life Radiopharmacy Footprint
AMG OVERVIEW | LIFE RADIOPHARMACY FOOTPRINT AMG RP Sites AMG Partner RP Sites ▪ Alliance Medical has a leading position within Radiopharmacy in both the UK and Germany ▪ Currently produce a range of tracers, including FDG, NeuraCeq®, Amyvid, Tau, PSMA ▪ Experienced team (>150) across Europe capable
Slide 17: UK PET-CT Footprint
AMG OVERVIEW | UK PET-CT FOOTPRINT PET-CT overview ▪ Provide 70% of the NHS PET-CT scans ▪ Standardised evidence-based pathways of care ▪ Up to seven day per week access to scanners ▪ Capacity for collaborative research and training with The Christie ▪ Integrated IT provision and ability to load sha
Slide 18: UK PET-CT Contracts
AMG OVERVIEW | UK PET-CT FOOTPRINT PET-CT contracts ▪ Wave 1 ▪ Fixed price per scan ▪ Contract ends Dec 2025 ▪ Wave 2 ▪ Price per scan including FDG isotope ▪ Contracts end 2027 and 2028 ▪ AMG has some unique selling points: ▪ Quality – time from referral to scan ▪ Own isotope manufacturing & supply
Slide 19: Opportunities for Growth in UK & Europe
AMG OVERVIEW | OPPORTUNITIES FOR GROWTH IN UK &EUROPE ▪ Continual PET-CT services from 2025 ▪ New standalone Community Diagnostic Centres in England ▪ Building commenced in 2021, completion early 2023 ▪ Continued growth in Ireland ▪ Potential for acquisitive growth in Italy J.P. Morgan SA Healthcare
Slide 20: Questions
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Slide 21: J.P. Morgan SA Healthcare Day 15 March 2022
J.P. Morgan SA Healthcare Day 15 March 2022 21
Slide 22: Appendices
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Slide 23: Growth Initiatives: Life Molecular Imaging (LMI)
GROWTH INITIATIVES | LIFE MOLECULAR IMAGING (LMI) NeuraCeq® GLOBALLY APPROVED ▪ Is an approved amyloid imaging tracer – used in PET-CT scans to help diagnose Alzheimer’s disease ® ▪ Biogen’s Aduhelm® (aducanumab), a drug which may slow the effects of Alzheimer’s disease, received FDA approval on 7 J
Slide 24: NeuraCeq sites: well positioned to grow on global footprint
GROWTH INITIATIVES | LIFE MOLECULAR IMAGING (LMI) NeuraCeq® sites – we are well positioned to grow based on existing global footprint J.P. Morgan SA Healthcare Day 15 March 2022 24
Slide 25: LMI's Exciting Product Pipeline
GROWTH INITIATIVES | LMI’S EXCITING PRODUCT PIPELINE PRODUCTS IN DEVELOPMENT other pathologies, with long shelf- Product Biomarker Targeted disease Development stage Market opportunity* Alzheimer’s, PSP, Parkinson’s and Next-generation radio tracers for ® Amyloid deposits Alzheimer’s Marketed >€300m
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