Slide 1: FY24 Results
FY24 RESULTS Dr. Ian Kadish Managing Director & CEO Craig White CFO 27 August 2024
Slide 2: IDX Vision, Purpose and Values
IDX VISION, PURPOSE AND VALUES Vision: A Healthier World Purpose: Deliver The Best Health Outcome For Every Patient We Serve 2
Slide 3: Delivering on Our Values – FY24
DELIVERING ON OUR VALUES – FY24 • Excellent patient NPS of • 243 reporting radiologists • 1,977 employees • Increased revenue by 6.6% • Undertook restructure in +84 in Australia and +86 155 employees • Conducted “temp-check” to $469.7m light of prolonged cost in NZ 88 contractors and “pulse” sur
Slide 4: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS Solid revenue and Operating EBITDA growth of 6.6% and 7.4% respectively, with an improvement in operating EBITDA margin to 19.5% (FY23: 19.3%) 1.3% 7.4% 1.0% 6.6% 5.5% Net debt / EBITDA Statutory NPAT increase in increase in increase in increase in increase in free (pre-AAS
Slide 5: A Materially Stronger 2H FY24 vs 1H FY24
A MATERIALLY STRONGER 2H FY24 VS 1H FY24 A materially stronger second half profit result, demonstrated by an improvement in Group EBITDA margins by 150 basis points to 20.3% for 2H FY24, compared to 1H FY24 of 18.8%, following a focus on key operational improvement initiatives. In addition, leverage
Slide 6: Continued Recovery in DI Industry Growth Rates: Australia
CONTINUED RECOVERY IN DI INDUSTRY GROWTH RATES: AUSTRALIA 20.0% 15.0% 10.0% 5.0% 0.0% (5.0%) (10.0%) Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024 12 month rolling growth rate
Slide 7: Shareholder Returns
SHAREHOLDER RETURNS Fully franked final dividend of 3.3cps (FY23: 3.5cps), with total dividends declared for FY24 representing 74.4% of FY24 Operating NPAT Operating EBITDA 100.0 80.0 41.5 48.3 60.0 45.4 AUD �m 46.4 38.8 40.0 52.0 20.0 36.0 39.8 43.2 29.3 - FY20 FY21 FY22 FY23 FY24 1H 2H Dividends 1
Slide 8: Financial Performance
FINANCIAL PERFORMANCE FY24 Results
Slide 9: Results for FY24
RESULTS FOR FY24 AUD �m FY24 FY23 Change (�) Change (%) Revenue 469.7 440.8 28.9 6.6% Operating EBITDA(1)(2) 91.5 85.2 6.3 7.4% Operating EBITDA margin 19.5% 19.3% Operating EBITA(1)(2) 46.1 43.8 2.3 5.2% Operating NPAT(1)(2) 18.1 17.9 0.2 1.3% Operating Diluted EPS (cps) 7.7 7.6 0.1 1.0% Free cash
Slide 10: Revenue
REVENUE Solid revenue growth of 6.6% to �469.7m • Solid revenue growth of 6.6% driven by Medicare indexation (refer details below), annualisation of FY24 out of pocket fee increases and continued favourable mix impact • Organic operating revenue from all sources (including reporting contracts, some
Slide 11: Operating Expenditure
OPERATING EXPENDITURE Operating expenses decreased by 20 basis points as a percentage of revenue % of Group Revenue AUD �m FY24 FY23 Var. (�) Var. (%) FY24 FY23 Consumables 22.9 21.0 1.9 8.9% 4.9% 4.8% Labour(1) 293.5 276.0 17.5 6.3% 62.5% 62.6% Equipment 15.8 15.6 0.2 1.3% 3.4% 3.5% Occupancy 9.9 7
Slide 12: Capital Management
CAPITAL MANAGEMENT AUD �m 30 June 2024 30 June 2023 Continued strengthening of balance sheet, with net debt to EBITDA of Cash and cash equivalents 42.4 33.9 2.6x Trade and other receivables 24.5 21.7 • FY24 net debt of $183.5m(1) (FY23: $194.5m), being 2.6x(2) EBITDA prior to non- Current tax liabil
Slide 13: Cash Flow and Cash Conversion
CASH FLOW AND CASH CONVERSION Solid free cash flow growth of 5.5% AUD �m FY24 FY23 Var. (�) Var. (%) Operating EBITDA 91.5 85.2 6.3 7.4% Adjust for: Non-cash items in EBITDA 1.2 (0.1) 1.3 (1134.7%) Changes in working capital (1.6) 13.4 (15.0) (112.3%) Replacement capital expenditure (14.6) (26.1) 11
Slide 14: Capital Expenditure
CAPITAL EXPENDITURE Capex investment aligned with IDX’s strategy FY24 Replacement capex of �14.6m Replacement capex reflects capital sensitivity requirements, site refurbishments and other end of life equipment replacements. FY24 has seen replacement or upgrade of 6 CT machines, 1 MRI machine, 20 ul
Slide 15: Regulatory Update
REGULATORY UPDATE FY24 Results
Slide 16: Regulatory Environment
REGULATORY ENVIRONMENT Australia: New Zealand: MRI Licences • There is limited indexation of pricing in New Zealand, however we have received CPI like increases commencing in December 2023 from the • On 1 November 2022, the Federal government de-regulated MRI services in majority of private health i
Slide 17: Strategy Update & Outlook
STRATEGY UPDATE & OUTLOOK FY24 Results
Slide 18: Management's Strategy – Good Medicine is Good Business
MANAGEMENT’S STRATEGY – GOOD MEDICINE IS GOOD BUSINESS 1 Grow Existing Business and Margin 2 Strategic Mergers & Acquisitions Strategy Accelerate use of Drive organic earnings teleradiology, digital Drivers of growth, including through As balance sheet capacity permits, consider and AI to improve th
Slide 19: Our Focus Remains on Execution of Key Operational Improvement Initiatives
OUR FOCUS REMAINS ON EXECUTION OF KEY OPERATIONAL IMPROVEMENT INITIATIVES Improve Patient & Referrer Workforce Development Increase Productivity & Lift Asset Utilisation Experience Efficiency • Complete roll out of online • Enhance clinical productivity, • Continue to review • Focus on improving uti
Slide 20: Saving Lives Through Teleradiology and Artificial Intelligence (AI)
SAVING LIVES THROUGH TELERADIOLOGY AND ARTIFICIAL INTELLIGENCE (AI) IDX Teleradiology (IDXt) AI in IDX • Launched in August 2020, provides services internally to the IDX • Commenced at Apex Radiology in February 2019, in IDXt in 2020, now utilized group, and externally to public hospitals and privat
Slide 21: Environmental, Social and Governance (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) • IDX continues to develop and implement its ESG strategy aligned to its values and with a view to complying with the proposed climate- related disclosure standards in Australia. • Details of the ESG activities will be published in our FY24 ESG Report 21
Slide 22: IDX Expects to Implement Transformational Proposed Merger with Capitol Health
IDX EXPECTS TO IMPLEMENT TRANSFORMATIONAL PROPOSED MERGER WITH CAPITOL HEALTH LIMITED IN NOVEMBER 2024 Combination of two highly complementary diagnostic imaging businesses to realise significant and enduring benefits for all of our combined patients, doctors and shareholders Creates a leader in A
Slide 23: Attractive Proposed Merger Strategic Rationale and Financial Benefits
ATTRACTIVE PROPOSED MERGER STRATEGIC RATIONALE AND FINANCIAL BENEFITS Combination of two highly complementary footprints into a more geographically diversified portfolio Significantly Combined group will have a materially greater financial profile enhanced scale Nationwide footprint of 155 cli
Slide 24: Questions
QUESTIONS FY24 Results idx
Slide 25: Appendices
APPENDICES FY24 Results
Slide 26: IDX Today - Group Overview – June 2024
IDX TODAY - GROUP OVERVIEW – JUNE 2024 Victoria Queensland Western Australia New Zealand Queensland Geographic Market Victoria Victoria & NSW Queensland Queensland Western Australia New Zealand & NSW Ballarat, Geelong, Albury, Wodonga, Sunshine Coast, Gold Coast, Warrnambool and Wangaratta, Brisbane
Slide 27: Proposed Merger with Capitol Health Limited – Transaction Summary
PROPOSED MERGER WITH CAPITOL HEALTH LIMITED – TRANSACTION SUMMARY Integral Diagnostics and Capitol Health have entered into a Merger Implementation Deed to create one of the largest diagnostic imaging companies in ANZ Capitol shareholders to receive 0.12849 Integral shares for every Capitol share
Slide 28: Reconciliation of Operating to Reported EBITDA and Statutory NPAT
RECONCILIATION OF OPERATING TO REPORTED EBITDA AND STATUTORY NPAT AUD �m FY24 FY23 Change (�) Change (%) Operating NPAT 18.1 17.9 0.2 1.3% Non-operating transactions net of tax Remeasurement of contingent consideration liabilities 1.3 15.8 Transaction, restructuring and integration costs(1)(2) (3.4)
Slide 29: Supplementary Information – Items Below EBITDA
SUPPLEMENTARY INFORMATION – ITEMS BELOW EBITDA AUD �m FY24 FY23 Comments Operating items below EBITDA (excluding tax) Depreciation of property, plant & equipment (27.9) (25.4) Depreciation charge on PP&E and capitalised software Depreciation of right of use assets (17.5) (15.9) Formerly treated as l
Slide 30: Disclaimer
DISCLAIMER 1. Some of the information contained in this 3. Past performance of IDX cannot be relied 5. Reliance should not be placed on the presentation contains “forward-looking upon as an indicator of (and provides no information or opinions contained in this statements” which may not directly or
Slide 31: Thank You
THANK YOU FY24 Results