Australian Clinical Labs Ltd · ASX:ACL
Australian Clinical Labs — Investor Presentation (August 2022)
30 slides from Australian Clinical Labs's investor presentation, Aug 10, 2022
Slide 1: ACL FY22 Financial 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 Wednesday, 10 August 2022 ACL FY22 FINANCIAL RESULTS The following announcements to the market are attached: FY22 Appendix 4E FY22 full year
Slide 2: ACL Delivers strong financial performance
ASX Announcement Australian Clinical Labs Limited ABN 62 006 823 089 Registered Office: 1868-1892 Dandenong Road Clayton VIC 3168 Australia clinicallabs.com.au Wednesday, 10 August 2022 ACL FY22 Full Year Results ACL Delivers strong financial performance Declares full year fully franked dividends of
Slide 3: CEO comments, final dividend and outlook
Chief Executive Officer and Executive Director, Melinda McGrath, said: “The past 12 months have been both challenging and capability building for ACL. The business upgraded its Queensland laboratory, acquired Medlab Pathology and expanded our NSW lab to take on extra testing capacity. We also undert
Slide 4: Investors and Media
Investors Media Eleanor Padman Sue Cato Company Secretary Media Relations Email: investors@clinicallabs.com.au Email: cato@catoandclive.com Phone: +61 (0) 422 002 918 Phone: +61 (0) 2 8306 4244 About Australian Clinical Labs ACL is a leading Australian private provider of pathology services. Our 76
Slide 5: FY22 Full year results presentation
FY22 Full year results presentation Melinda McGrath CEO and Executive Director James Davison CFO 10 August 2022 0
Slide 6: Contents
Contents • FY22 Highlights • About ACL • ESG Focus Areas • FY22 Results • Strategy Update • Outlook • Key Highlights • Appendix 1
Slide 7: FY22 highlights
FY22 highlights In FY22 ACL achieved strong results, an enhanced strategic position, improved operational performance and continued to invest in its ESG targets • ACL achieved a strong financial performance on all key metrics in FY22 over pro forma FY21: - Revenue increased by 48% to $995.6m; - NPAT
Slide 8: A leading Australian private pathology provider targeting global best practice levels
A leading Australian private pathology provider targeting global best practice levels 90+ 1,336 31 specialist Hospitals serviced, Approved Collection Centres skin cancer clinics, a leading private provider in 76 diagnosing ~15% of public & private hospitals NATA accredited all reported melanomas lab
Slide 9: ESG is central to operations and strategy
ESG is central to operations and strategy ACL has a values focused approach to investing towards ESG targets Focus Area Targets Set Key Achievements in FY22 • Scope 1 & 2 Assessment Completed: 1.4Kg CO2 per episode Scope 1 and 2 emissions to be measured & published. Minimise GHG • Pilot program comp
Slide 10: COVID response, rapid, efficient and effective
COVID response, rapid, efficient and effective ACL’s contribution to Australia’s response to the COVID pandemic has been significant and a clear demonstration of ACL’s values ACL Role in COVID Response • ACL continued to play a critical role in Australia’s testing process for patients and hospitals
Slide 11: FY22 Results Overview
FY22 Results Overview James Davison, CFO 6
Slide 12: FY22 Summary Profit and Loss
FY22 Summary Profit and Loss ACL achieved record financial performance on all key metrics in FY22 • Revenue increased by 48% to $995.6m, NPAT increased by 101% to $178.2m, Non-COVID revenue increased by 8% to $556.4m. Strong focus on margin management and operational control demonstrated through EBI
Slide 13: ACL revenue breakdown by half year
ACL revenue breakdown by half year Non-COVID revenue remains below historical growth trends due to COVID impacts. COVID revenue remains volatile depending on scale of outbreaks in Australia ACL Pathology Testing Revenue Breakdown by 6 months ACL Revenue Breakdown by Half Year $m • Excluding acquisit
Slide 14: FY22 Cash flow
FY22 Cash flow ACL generated $171.2 m of cash flow prior to financing activities (up 76% on FY21). Cash EBITDA to operating cash flow conversion continued to be strong at 96% • ACL has demonstrated its strong ability to convert earnings into cash flow with a conversion of Cash EBITDA to Operating ca
Slide 15: FY22 balance sheet
FY22 balance sheet Strengthened balance sheet, with borrowings all repaid. Net debt excluding lease liabilities improved by $91m from a net debt position of $64.1m to a net cash position of $26.4m Comments • Cash balance $26.4m as at 30 June 2021 with all borrowings repaid. Net debt excluding lease
Slide 16: FY23 Strategy update and Outlook
FY23 Strategy update and Outlook Melinda McGrath, CEO, Executive Director 11
Slide 17: Strategy update
Patient services and Operational investment Geographic expansio testing capabilities Strategy update ACL has continued to strengthen its strategic position by a focus on patient services and testing capabilities, upgrade of its Laboratory Information System, operational investment and geographical e
Slide 18: Operational achievements realised in FY22
Operational achievements realised in FY22 ACL has continued to invest in operational improvements and innovation throughout the year Operational Achievements Medlab Integration 12 months ahead of schedule to be refined over the next 6 months Integration – Synergies identified greater than expect
Slide 19: Outlook: Non-COVID revenue
Outlook: Non-COVID revenue The timing of the rebound in non-COVID testing revenue will be a key driver of ACL’s outlook. This is hard to forecast in the short term, but is more predicable in the longer term as the market is expected to return to historic trends Medicare funding for Pathology (ex COV
Slide 20: Outlook: COVID revenue
Outlook: COVID revenue The level of COVID testing revenue will be a key driver of ACL’s outlook. This is hard to forecast in the short term. ACL believes COVID has become endemic and testing will continue and become more akin to seasonal flu Medicare funding for COVID on quarterly basis COVID Revenu
Slide 21: Well-defined growth strategy
Well-defined growth strategy ACL’s mission is to empower decision making that saves and improves patients’ lives Strategic Acquisitions Footprint Expansion Operational Performance Improvements Embedded Revenue Acquisitions in Opportunities Increase position in New South Wales specialist and gene
Slide 22: FY22 dividend
FY22 dividend ACL has declared a 41 cps final dividend (fully franked) which will bring the total FY22 dividend to 53 cents (fully franked) which represents 60% of FY22 NPAT Final dividend • Board declares a final dividend of 41 cps (fully franked) • Ex Dividend date of 23 August, record date 24 Aug
Slide 23: Key highlights from FY22
Key highlights from FY22 1 Continued strong financial and operational performance: NPAT of $178.2m and EBIT margin of 26.8%1 Increased Medicare market share from 13% to 16%2 driven by the strategic acquisition of Medlab. Opens up 2 opportunity for continued market share growth in Queensland with inv
Slide 24: Q&A
Q&A AUSTRALIAN “Clinicalabs
Slide 25: Appendix
Appendix AUSTRALIAN “Clinicalabs
Slide 26: Reconciliation of FY22 adjusted P&L
Reconciliation of FY22 adjusted P&L (excluding Medlab Integration & Transaction Costs and other Non-Recurring expenses) • The above table outlines adjusted results excluding Medlab integration and transactions costs and other non-recurring expenses 21
Slide 27: Reconciliation of FY21 pro forma P&L to statutory accounts
Reconciliation of FY21 pro forma P&L to statutory accounts • The above table outlines the pro forma adjustments to the audited statutory profit and loss for FY21 • The pro forma adjustments align with the Prospectus with notable differences being lower than expected offer costs, accelerated expensin
Slide 28: FY21 indebtedness
FY21 indebtedness Conservative net leverage provides significant headroom and financial flexibility Key terms of banking facilities: - Margin of 1.5% (when < 1.5x EBITDA) - Net leverage covenant < 3.5x - Fixed charge cover ratio > 1.5x 23
Slide 29: Reconciliation AASB 16 to AASB 117
Reconciliation AASB 16 to AASB 117 24
Slide 30: 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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