Slide 1: 1H 2022 Results
1H 2022 Results 23 February 2022
Slide 2: Group results
Group results Group Underlying1 Reported2 $m 1H 2022 1H 2021 1H 2022 1H 2021 Revenue 1,339.0 936.4 1,338.0 927.6 EBIT 376.1 136.0 361.7 140.0 NPAT (Reported incl. discontinued operations) 245.6 75.3 233.2 62.8 Dividend cps 100% franked 10.0 6.5 Underlying results at record levels • Underpinned by Pa
Slide 3: Pathology
Pathology Underlying 1H 2022 1H 2021 Better/ $m $m (worse) % Revenue 1,112.3 711.4 56.4 EBITDA 471.1 209.2 125.2 Depreciation and amortisation (95.3) (82.3) (15.8) EBIT 375.8 126.9 196.1 Total capital expenditure 13.0 17.4 25.3 • Strong 1H 2022 performance due to COVID testing during Delta and Omicr
Slide 4: Imaging
Imaging Underlying Better/ 1H 2022 1H 2021 $m $m (worse) % Revenue 199.6 200.4 (0.4) EBITDA 42.5 38.8 9.5 Depreciation and amortisation (30.6) (24.6) (24.4) EBIT 11.9 14.2 (16.2) Total capital expenditure 38.9 4.3 Large • Revenue reflects industry-wide impacts of COVID-19 and elective surgery restri
Slide 5: Day Hospitals
Day Hospitals Underlying 1H 2022 1H 2021 Better/ $m $m (worse) % Revenue 24.6 24.7 (0.4) EBITDA 6.8 8.4 (19.0) Depreciation and amortisation (3.8) (3.3) (15.2) EBIT 3.0 5.1 (41.2) Total capital expenditure 1.4 1.3 (7.7) • Westside Private revenue up 24%. Group-wide experienced similar conditions to
Slide 6: Corporate
Corporate Underlying Better/ 1H 2022 1H 2021 $m $m (worse) % 1 Revenue 3.4 2.3 n.a. EBITDA (9.6) (4.8) (100.0) Depreciation and amortisation (5.0) (5.4) 7.4 EBIT (14.6) (10.2) (43.1) Total capital expenditure 1.7 3.4 50.0 • Consistent with 2H 2021 • As foreshadowed, undertaken capability ramp-up in
Slide 7: Trading update
Trading update Core businesses • Expect strong trading in all businesses with Omicron peak subsiding, elective surgery and community activity returning • Period of catch-up likely with known underdiagnosis and backlog in routine services • Opening of borders should enable increase in overseas-traine
Slide 8: Strong balance sheet to fund growth/sustaining capex and reward shareholders
Strong balance sheet to fund growth/sustaining capex and reward shareholders Strong cash generation Controlled capital spend Flexible balance sheet Gross operating cash flow Capital Expenditure Net debt +42% 678 666 91.4 Continuing (organic) 0.4 408.3 Continuing (inorganic) Disc. Ops 48.6 285.0 286.
Slide 9: Cost containment in inflationary environment
Cost containment in inflationary environment 1,339 Sound underlying business performance underpinned by disciplined Revenue +43% cost control, and SIP margin improvement with further initiatives set for 2H implementation UEBIT +177% High COVID volumes converting to bottom line 376 Inflationary cost
Slide 10: SIP Phase II progressing from pilot to roll-out
Pathology SIP Phase II progressing from pilot to roll-out Completed Imaging In progress Current implementation status Major initiatives Division Scoping Design Pilot Roll-out Implemented ACC network optimisation (Phase II) 2nd phase of ACC opportunities identified Implement new network opportunities
Slide 11: Effective use of capital for portfolio growth
Effective use of capital for portfolio growth What we’ve done What we’re working on Allocating for • Sale of Healius Primary Care • Capital flexibility to pursue acquisitive growth growth and • Adora IVF brought to market • Digital overhaul in Pathology and Imaging capital-light • Scalable investmen
Slide 12: Healius Group today
Healius Group today tthealius
Slide 13: Building a sustainable business
Building a sustainable business Our Business Our Shareholders Our People Our Communities Our Customers Sustainable Improvement Streamlined portfolio Rewarding those who went Pivotal role in Australia’s Investing in leading-edge Program aptly named with delivering higher returns above and beyond in r
Slide 14: Sustainable Improvement program (Phase II)
Sustainable Improvement program (Phase II) Targeting 300 bps margin improvement by FY 2023 and step-change capability uplift Network Customer-segment based growth strategy to increase revenue growth in core Australian “Grow the markets for diagnostic services; optimising mix & product, price and dis
Slide 15: A specialist diagnostic and day hospitals business
A specialist diagnostic and day hospitals business We are focused on leveraging established market positions, management capability and scalability in Pathology, Imaging and Day Hospitals Pathology Imaging Day Hospitals • Scale player in mature market (#2) • Scale player in growing market (#3) • Mar
Slide 16: A market leading network
A market leading network Australia-wide coverage 16 Total Sites 621 Total Sites 2,277 Total sites 16 213 Total Sites 578 37 6 2,122 2,027 ACCs Pathology 95 Laboratories 40 Total Sites 203 5 5 761 Total Sites 34 6 12 11 Montserrat ACT Day Hospitals 1 Brookvale Day Hospital 38 Total Sites 702 58 1 35
Slide 17: Appendices
. Appendices tthealius
Slide 18: Divisional reconciliation
Divisional reconciliation 1H 2022 1 Pathology Imaging Day Hospitals Corporate Group $m Revenue 1,112.3 199.6 24.6 3.4 1,339.0 EBITDA 471.1 42.5 6.8 (9.6) 510.8 Depreciation and amortisation (95.3) (30.6) (3.8) (5.0) (134.7) EBIT 375.8 11.9 3.0 (14.6) 376.1 1H 2021 1 Pathology Imaging Day Hospitals C
Slide 19: 1H 2021 Day Hospitals reconciliation
1H 2021 Day Hospitals reconciliation Adora/HLS DHs 1H 2021 Day Hospitals Day Hospitals (1H21 Montserrat Brookvale (discontinued $m (restated) disclosures) operations) Revenue 22.7 2.0 24.7 17.1 41.8 EBITDA 8.1 0.3 8.4 2.0 10.4 Depreciation and amortisation (3.3) - (3.3) (1.4) (4.7) EBIT 4.8 0.3 5.1
Slide 20: Underlying v reported reconciliation
Underlying v reported reconciliation 1H 2022 Underlying EBIT 376.1 Corporate transactions (6.0) Agilex acquisition, Adora disposal costs and other corporate transactions Digital transformation (5.8) Pathology Transactions with discontinued operations (2.6) Rental income in corporate from HLS Day Hos
Slide 21: AASB 16: Key impacts 1H 2022
AASB 16: Key impacts 1H 2022 P&L 1H 2022 1H 2022 $m $m Property & other expenses 117.0 Operating lease expense reversed EBITDA 117.0 Depreciation (105.9) Depreciation of right of use asset recognised EBIT 11.1 Finance costs (17.5) Interest paid on lease liability recognised Profit before tax (6.4) T
Slide 22: Financial impacts of individual leases over time
Financial impacts of individual leases over time Key P&L Description Illustration Forward Outlook P&L Impact Impact Driver • Interest reduces over time as • Operating lease lease liability reduces NEW payments previously P&L impact will reverse LEASES recognised as an • AASB 16 Less favourable to as
Slide 23: tihealius
tihealius