Slide 1: FY 2024 Results
FY 2024 Results 21 August 2024 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may include forward-looking statements about our financial results, guidance and business prospects that may involve risks and uncertainties, many of which are outside the control of Healius Limited. Readers are cautioned not to place undue reliance on fo
Slide 3: Group overview
Group overview Paul Anderson Chief Executive Officer & Managing Director 3
Slide 4: Underlying EBITDA and EBIT in line with guidance
Underlying EBITDA and EBIT in line with guidance Revenue BAU Underlying EBIT Financial Performance $1.74b $65.4m Group BAU revenue up 6.1%. • Pathology revenue $1.64b in pcp (up 6.1%) $99.0m in pcp • BAU revenues up 4.7% including Agilex Pathology Revenue Imaging Gross Revenue • Covid revenue down $
Slide 5: Pathology
Pathology Financial (excluding Agilex) • BAU pathology revenue up 4.2%, with volume growth of 4.0% for FY24 • Cost growth limited to 2.8% • EBIT of $33.3m for FY24 (2H24 - $29.3m), EBIT margin of 2.7% (4.7% for 2H24) Operational Market Factors • Inflationary pressures remain – labour, rent and consu
Slide 6: Pathology Strategy
Pathology Strategy Focused on providing better services for our patients and referrers to improve the volume and quality of the revenue we generate, and to become more efficient in our processes • Strategy redefined as part of recent operating and strategic review • Focused on doing basics well, rep
Slide 7: Pathology Strategy
Pathology Strategy Focused on providing better services for our patients and referrers to improve the volume and quality of the revenue we generate, and to become more efficient in our processes Customer Laboratory Emerging People and Digital service modernisation diagnostics ways of technologies wo
Slide 8: Agilex Biolabs
Agilex Biolabs Financial • Revenue for FY24 grew 20.8% to $39.5m • EBITDA of $8.9m was 102.3% higher than pcp • EBIT for FY24 grew 292.3% to $5.1m from $1.3m Operational • New commercial agreements signed during the year and since year end open up new channels of bioanalytical work, with benefits to
Slide 9: Lumus Imaging
Lumus Imaging Financial • Top line gross revenue growth of 5.7% • Community and hospital channels exceeding market with growth of 12.2%1 (ahead of MBS benefits growth of 9.1%) - comprise over 81% of revenue • Volume growth of 7.3% • Average fee increase of 4.7% • EBIT margin 8.1%, up from 7.7% (2H24
Slide 10: Lumus Imaging
Lumus Imaging Operational • Investments in large scale comprehensive clinics, improved modality mix and pricing initiatives are driving above market growth • Community site strategy to increase average revenue per clinic ahead of plan • 2 new Greenfields sites in FY24 at Jimboomba and Narangba, 4 ne
Slide 11: Key financials
Key financials Steve Humphries Chief Financial Officer 11
Slide 12: FY24 Group Results
FY24 Group Results FY24 FY23 Underlying EBIT in line with guidance $m $m Chg % • Group BAU revenues up 6.1% / Covid revenues reduced $61.0m BAU revenue 1,743.7 1,643.5 6.1% • Continued GP referral softness in Pathology, inflationary cost Covid revenue 2.5 63.5 (96.1%) pressures and lack of indexatio
Slide 13: Pathology (excluding Agilex)
Pathology (excluding Agilex) FY24 FY23 BAU revenues up 4.2% $m $m Chg % • Volume improvement in 2H contributing to BAU revenue growth as BAU revenue 1,225.9 1,176.1 4.2% Covid impact is cycled out Covid revenue 2.5 63.5 (96.1%) • Average fee flat, growth impacted by mix and HLS skew towards Total re
Slide 14: Agilex Biolabs
Agilex Biolabs FY24 FY23 Strong revenue and margin improvement $m $m Chg % • Revenue up 20.8% Revenue 39.5 32.7 20.8% • EBITDA up $4.5m (102%) and EBIT up $3.8m (292%) vs pcp EBITDA 8.9 4.4 102.3% • Notable margin expansion through revenue growth and strong cost EBIT 5.1 1.3 292.3% management EBIT m
Slide 15: Lumus Imaging
Lumus Imaging FY24 FY23 Above market revenue growth continues to drive EBIT $m $m Chg % growth and margin expansion Gross revenue 1 519.0 491.1 5.7% • Achieved above market gross revenue growth of 12.2% in our Statutory revenue 474.5 431.2 10.0% Community and Hospitals segments3 on pcp, which reflec
Slide 16: Cashflow and capex
Cashflow and capex Cashflow carefully managed; targeted capex for sustainable growth FY24 Gross Operating Cashflow Adjusted cash conversion Highlights $243m 85% • 85% conversion of EBITDA to gross operating cash flow1 • Maintenance capex $28m, primarily site refurbishments for ACC’s and imaging site
Slide 17: Debt management
Debt management Disciplined capital management remains a key focus FY24 FY25 Outlook Debt Facilities • Net debt reduced to $361m • Capital management remains a Bank Facilities reduced to $680m ($447m FY23), net proceeds major focus • Refinancing successfully from capital raise of $179m • Lumus Imagi
Slide 18: FY25 outlook
FY25 outlook • Pathology has continued its growth trajectory during July and August with volumes currently trending over 4% ahead of pcp • Imaging exam volumes up approximately 15% and revenue up 12% for the year to date • Agilex to continue significant revenue and EBIT growth - performing in line w
Slide 19: Q&A
Q&A thea lius
Slide 20: Appendix
Appendix 20
Slide 21: Underlying v Reported Reconciliation
Underlying v Reported Reconciliation FY24 FY23 FY24 FY23 $m $m $m $m Underlying EBIT 65.4 99.0 Underlying NPAT (3.8) 25.7 Digital transformation costs (25.8) (21.7) After-tax adjustments to underlying EBIT (451.3) (303.8) Transaction and takeover bid costs (7.7) (8.6) Tax differential for non-deduct
Slide 22: Divisional reconciliation - underlying
Divisional reconciliation - underlying Pathology Imaging Corporate Group1 $m $m $m $m FY24 Revenue 1,267.9 474.5 4.2 1,746.2 EBITDA 260.5 97.3 (11.2) 346.6 EBIT 38.4 41.9 (14.9) 65.4 FY23 Revenue 1,272.3 431.2 3.9 1,707.0 EBITDA 293.5 96.2 (13.5) 376.2 EBIT 78.7 37.8 (17.5) 99.0 1 In FY24 $0.4 milli
Slide 23: Pathology Segment
Pathology Segment FY24 FY23 Pathology segment revenue and EBIT impacted by Covid $m $m Chg % • Segment BAU revenues improved in 2H24, YoY up 4.7% Revenue 1,267.9 1,272.3 (0.3%) • EBITDA comprises $6.1m in 1H24 and $32.3m in 2H24 EBITDA 260.5 293.5 (11.2%) • EBIT margin was 5.0% in 2H24 and 3.0% for