Slide 1: 1H21 Results
1H21 Results Dr. Ian Kadish (MD & CEO) Anne Lockwood (CFCO) 22nd February 2021 T his presentation has been updated to reflect a correction notice “Good Medicine is Good Business” advised to the ASX on 5 March 2021.
Slide 2: IDX Vision Statement
IDX VISION STATEMENT Integral Diagnostics 2
Slide 3: Delivering on our values – 1H21
DELIVERING ON OUR VALUES – 1H21 Patients Medical Everyone Create Embrace First Leadership Counts Value Change • Served 450,000 • 221 reporting • 1,478 employees • Increased • Managed patients radiologists Operating NPAT workflows, • Developed an IDX by 61.1% to personnel and • Performed 1m 152 emp
Slide 4: 1H21 Financial Highlights
1H21 FINANCIAL HIGHLIGHTS 82.6% 61.1% 50.3% 38.0% 29.5% 70.2% 22.2% increase increase increase increase increase increase improved in in in in in in Statutory operating operating operating operating free cash Net debt NPAT NPAT EBITDA EPS revenue flow /LTM EBITDA $19.9m $23.2m $52.0m 11.6cps $170.7m
Slide 5: DI Industry COVID-19 Impact: Australia
DI INDUSTRY COVID-19 IMPACT: AUSTRALIA Industry growth rates in Australia impacted by COVID-19 in CY20 Growth rates still materially below the long term average Industry growth 12 month rolling growth rate by services 12 month rolling growth rate by benefits 15.0% 13.0% -- Long Term Average 3.9% --L
Slide 6: 1H21 financial performance
1H21 financial performance
Slide 7: Results including AASB 16 for 1H21
RESULTS INCLUDING AASB 16 FOR 1H21(1) $ million 1H21 1H20 Change ($) Change (%) Operating revenue(2) 170.7 131.8 38.9 29.5% Operating EBITDA(3) 52.0 34.6 17.4 50.3% EBITDA operating margin 30.5% 26.3% 4.2% 16.0% Operating EBITA 36.7 24.1 12.6 52.3% Operating NPAT 23.2 14.4 8.8 61.1% Operating Dilute
Slide 8: Reconciliation of Operating to Statutory
RECONCILIATION OF OPERATING TO STATUTORY $ million 1H21 1H20 Change ($) Change (%) Operating NPAT 23.2 14.4 8.8 61.1% Non operating transactions net of tax Transaction and integration costs (0.5) (2.1) Share based payments (1.0) (0.5) Amortisation of customer contracts (1.8) (0.8) Write off of brand
Slide 9: Growth in Shareholder Returns
GROWTH IN SHAREHOLDER RETURNS 80 Operating EBITDA - million 70 75.7 60 50 53 40 AASB 16 in 52 30 38.1 FY 20 and 33.5 1H21 results 20 FY 17 FY 18 FY 19 FY 20 1H21 IDX Dividends Dividend cents per share 10.0 9.5 8.0 7.0 5 4 4 4 5 5.5 5.5 3 4 FY 17 FY 18 FY 19 FY 20 1H21 Interim Dividend Final Dividend
Slide 10: Revenue
REVENUE Operating revenue up 29.5% to $170.7m Solid underlying growth, despite ongoing COVID-19 impacts, driven by new sites, investment in new equipment and additional contribution from acquisitions • Revenue Growth of $38.9m driven by: • Imaging Queensland $23.0m for additional 4 months July-Oct c
Slide 11: Operating Expenditure
OPERATING EXPENDITURE IDX experienced a 1.3% ($2.3m) increase in operating costs1 as a % of revenue , largely driven by increasing employee leave costs • Adjusting for Jobkeeper of $9.5m employee costs increased by 1.5% as a percentage of revenue driven largely by increased costs of approximately $1
Slide 12: Capital Management
CAPITAL MANAGEMENT Strong balance sheet with reduced leverage to support on-going growth strategy $ million 31 Dec 20 30 Jun 20 31 Dec 19 • 1H21 net debt of $137.3m (1H20: $134.8m) Cash and cash equivalents 68.8 58.0 26.8 Trade and other receivables 11.6 10.4 11.8 • Reducing 1.4x EBITDA prior to one
Slide 13: Cashflow and Cash Conversion
CASHFLOW AND CASH CONVERSION Strong business performance and cash conversion reflected in free cash flow growth • Normalised free cash flow conversion of $ million 1H21 1H20 82.1% (1H20 72.5%) – 95% net of replacement capex Operating EBITDA 52.0 34.6 • The application of AASB 16 results in the Non-c
Slide 14: Capital Expenditure
CAPITAL EXPENDITURE Conservative capex spend, with growth capex curtailed in 1H21 due to COVID-19 uncertainty $ million(1) 1H21 1H20 1H19 Replacement 6.7 5.3 4.3 Growth 3.6 11.2 1.6 Total 10.3 16.5 5.9 Depreciation 9.5 6.5 5.3 Replacement capex of $6.7m Primarily replacement of approximately 30 Ultr
Slide 15: Regulatory update
Regulatory update
Slide 16: Regulatory Environment Activity
REGULATORY ENVIRONMENT ACTIVITY Australia: MRI Licences • No further licences or plans for MRI licences have been announced April 2020 • As a result of COVID-19 the Government relaxed the attendance rules for radiologists on some examinations as well as allowed electronic referrals and upfront billi
Slide 17: Regulatory Environment Activity
REGULATORY ENVIRONMENT ACTIVITY IDX continues to work through membership of the executive of the Australian Diagnostic Imaging Association (ADIA) to address key regulatory issues within the industry including: • Extension of indexation across the remaining Medicare items • Expanding access to MRI •
Slide 18: Strategy
Strategy
Slide 19: IDX Operates in Key Geographic Markets
IDX OPERATES IN KEY GEOGRAPHIC MARKETS Total IDX Queensland and Geographic Market Victoria Western Australia New Zealand Queensland NSW Ballarat, Geelong, Gold Coast, Sunshine Coast, Warrnambool and South West Core markets Toowoomba and Auckland Rockhampton and outer western areas Western Australia
Slide 20: Management's 2H21 Strategy – Good Medicine is Still Good Business
MANAGEMENT’S 2H21 STRATEGY – GOOD MEDICINE IS STILL GOOD BUSINESS Strategy 1 Grow existing business and margin 2 Strategic acquisitions Accelerate use Drive organic of digital and Nurture and AI technology Drive our Drivers of growth, develop to improve the environmental, strategy business culture a
Slide 21: Questions?
QUESTIONS? Integral Diagnostics 21
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: Contact Us
CONTACT US Investors & Media Dr Ian Kadish, MD & CEO P: +61 3 5339 0704 E: ikadish@idxgroup.com.au