Australian Clinical Labs Ltd · ASX:ACL
Australian Clinical Labs — Investor Presentation (November 2021)
16 slides from Australian Clinical Labs's investor presentation, Nov 15, 2021
Slide 1: ASX Announcement: Acquisition of Medlab Pathology Investor Presentation
ASX Announcement Australian Clinical Labs Limited ABN 94 645 711 128 Registered Office: 1868-1892 Dandenong Road Clayton VIC 3168 Australia clinicallabs.com.au 15 November 2021 ACQUISITION OF MEDLAB PATHOLOGY – INVESTOR PRESENTATION Australian Clinical Labs (ACL or Company) provides to the market a
Slide 2: Forward-looking statements
information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, other than to the extent required by law. Such forward-looking statements are not guarantees of future performance and involve known and unknown
Slide 3: Acquisition of Medlab Pathology
Acquisition of Medlab Pathology Melinda McGrath CEO and Executive Director James Davison CFO November 2021 0
Slide 4: Acquisition of Medlab Pathology will further strengthen ACL's national scale
Acquisition of Medlab Pathology1 will further strengthen ACL’s national scale and deliver significant growth opportunities • ACL has entered into a binding agreement to acquire Medlab Pathology; a leading Australian private pathology provider, with two laboratories and 288 approved collection centre
Slide 5: Medlab Pathology: a leading Australian privately-owned independent pathology provider
Medlab Pathology: a leading Australian privately-owned independent pathology provider with a focus on Sydney and South-East Queensland $92.6m $10.5m 2 288 FY21 Normalised1 FY21 Normalised2 NATA accredited Approved Collection Revenue EBITDA laboratories Centres • Founded in 2001, provides a comprehen
Slide 6: Medlab's complementary ACC network to double ACL's ACCs in NSW
Medlab’s complementary ACC network to double ACL’s ACCs in NSW and accelerate growth in Queensland NSW QLD Medlab ACL Combined Medlab ACL Combined Key ACL Medlab 205 222 427 83 1 84 Sunshine Coast Newcastle Sydney Brisbane Wollongong Gold Coast • Medlab’s footprint is highly complementary to ACL in
Slide 7: Strategic Benefits of the acquisition
Strategic Benefits: The acquisition has several key strategic benefits • Expected to bring additional scale in two significant target markets of NSW and QLD Scale • NSW is the largest market in Australia and QLD is number three • Leverage from existing scale and excellent geographic bolt on Customer
Slide 8: Transaction Rationale: fills gaps and generates more than $10m of efficiencies
Transaction Rationale: Strategically fills gaps for ACL and will generate more than $10m of operational efficiencies Scale in NSW Broader offerings • Medlab: 205 ACCs in NSW (9.8% of NSW ACCs) • ACL can insource majority of Medlab’s testing being sent away to other • Combined ACL/Medlab doubles in s
Slide 9: Overview of Medlab financial metrics
Overview of Medlab financial metrics James Davison, CFO 6
Slide 10: Key terms: total expected purchase price of $70m
Key terms: The acquisition has a total expected purchase price of $70m and has normal conditions associated with pathology acquisitions • ACL has entered into a binding agreement to acquire the key business assets of Medlab Pathology for $70m, with $60m paid at completion and deferred consideration
Slide 11: Financial impact and multiples
Financial impact and multiples Financials Medlab, ACL, Combined $m FY21 Normalised 1 Pro Forma FY21 COVID-19 Revenue 15.5 137.9 153.4 Non COVID-19 Revenue 77.0 536.5 613.5 Total Revenue 92.5 674.4 766.9 EBITDA AASB 16 (pre- synergies)5 27.0 230.6 257.7 Margin, % 29.2% 34.2% 33.6% EBITDA AASB 117 (pr
Slide 12: ACL Growth Strategy
ACL Growth Strategy Melinda McGrath, CEO, Executive Director 9
Slide 13: Well-defined growth strategy
Well-defined growth strategy The acquisition of Medlab forms part of a well-defined strategic growth plan Strategic Acquisitions Footprint Expansion Operational Performance Improvements Embedded Revenue Acquisitions in Opportunities Increase position in New South Wales specialist and general C
Slide 14: In Summary
In Summary 1 Medlab acquisition forms part of well-defined strategic growth plan and has complementary geographic footprint 2 Acquisition will further strengthen ACL’s national scale 3 Will deliver both significant growth opportunities and shareholder value 4 Additional scale to underpin further ope
Slide 15: Q&A
Q&A AUSTRALIAN “Clinicalabs
Slide 16: 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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