Healius Limited · ASX:HLS
Healius — Investor Day (May 2022)
28 slides from Healius's investor day presentation, May 20, 2022
Slide 1: Healius Strategy Day
For personal use only Healius Strategy Day 20 May 2022
Slide 2: Acknowledgement of country
For personal use only Acknowledgement of country We acknowledge the Gadigal People of the Eora Nation as the traditional custodians of the land on which we gather today, and pay our respects to their Elders - past, present and emerging 2 Healius Strategy Day
Slide 3: Trading update
Trading update Core businesses • Revenues in all divisions slowly trending up, but not yet returned to normal with For personal use only impacts from floods and extensive COVID / isolation requirements in every state • Q3 Pathology slightly ahead of Medicare data (as in the first half) and Imaging a
Slide 4: Long term growth trends and COVID impact
Long term growth trends and COVID impact For personal use only Historical growth trend 4 Healius Strategy Day
Slide 5: Healius investment proposition
Healius investment proposition For personal use only Well positioned in attractive markets Ready to capture growth & create value Solid core market fundamentals Ability to consolidate & integrate for network growth Scaled diagnostics operator Cost out track record Defensible incumbent posi
Slide 6: Capital Management
Capital Management 2H22 update For personal use only • Agilex acquisition completed • Refinanced debt • Paid interim dividend of 10cps • Second buyback commenced, $15m purchased to-date Investment in organic and inorganic • Growth in network assets including ACCs, Imaging facilities • Digital and LI
Slide 7: Agenda
Agenda For personal use only 1 Growing the core – Progress on SIP; commercial and operational agendas in Pathology 2 Digital Journey – Building a digital future for diagnostics 3 Growth beyond the core – Agilex & Clinical Trials 7 Healius Strategy Day
Slide 8: Growing the core
For personal use only Growing the core
Slide 9: How are we tracking on the Sustainable Improvement Program (Phase II)
How are we tracking on the Sustainable Improvement Program (Phase II) For personal use only Targets set in Dec-20 Progress so far Larger SIP pipeline; 70/30 cost v revenue; ~80% $67m of incremental EBIT from SIP initiatives of target “bankable” ~75% Pathology and ~25% Imaging split Higher skew towar
Slide 10: Sustainable Improvement program (Phase II)
Sustainable Improvement program (Phase II) Customer-segment based strategy to increase revenue growth in core Australian markets for diagnostic For personal use only Grow the services; optimising mix & product, price and distribution core ACC and Imaging site network and capacity optimisation Labs o
Slide 11: Main drivers of operational value in Pathology
Main drivers of operational value in Pathology Value drivers Description For personal use only • Purchasing power drives procurement savings (e.g. reagents, instruments) Economies of • High episode volumes required for main lab efficiency $ scale • Complex tests are only viable at scale • Knowledge
Slide 12: Pathology – Operational improvement programme
Pathology – Operational improvement programme For personal use only Operational labour cost split, % Targeted operational outcomes • Optimising our labour mix and rostering approach • Building in the appropriate levels of workforce flexibility across roles, enabling labour to rapidly ramp 1 Collecto
Slide 13: Pathology – Commercial strategy
Pathology – Commercial strategy For personal use only • Expand profitable ACC footprint Non-COVID pathology revenue by Optimise the segment, % 1 • Defend hospital contracts core • Grow B2B share in focus markets 10% 10% • Grow hospital ACC / lab footprint 35% Grow specialist • Execute targeted sub s
Slide 14: Digital Journey: Building a digital future for Diagnostics
For personal use only Digital Journey: Building a digital future for Diagnostics
Slide 15: We have three strategic priorities
We have three strategic priorities For personal use only 01 02 03 Power Clinical Reimagine Customer Modernise Diagnostic Insight Experiences Systems Superior AI driven diagnostic Digital journeys that Next generation of decision support for improve the way we interact information systems that preven
Slide 16: Pathology: Success for us is unlocking value by…
PATHOLOGY Success for us is unlocking value by… For personal use only • Making it easy for 10,000+ GPs and Specialists across the country to refer their patients to us for pathology tests • Taking paper forms out of 2,000 collection centres that increase waiting time for patients and drive manual ef
Slide 17: We are well on our way in building Pathology solutions
PATHOLOGY We are well on our way in building Pathology solutions For personal use only REFERRALS COLLECTIONS TESTS REPORTS PAYMENTS 4 2 Lab Collections Portal Portal 1 7 8 5 Results Billing Electronic Instrumentation App System Referrals System 3 Courier 6A 6B 6C 6D 6E 6F 6G 6H System Histology Cyto
Slide 18: We are leveraging common solutions in Imaging
IMAGING We are leveraging common solutions in Imaging For personal use only REFERRALS BOOKINGS TESTS REPORTS PAYMENTS C Radiology Portal Existing RIS A B F G D Results Billing Electronic Booking Picture App System Referrals Portal System Existing PACS E1 E2 E3 E4 E5 X RAY CT ULTRA MRI PET H Data Pla
Slide 19: For personal use only
For personal use only 19 Healius Strategy Day
Slide 20: Growth beyond the core: Agilex & Clinical trials
For personal use only Growth beyond the core Agilex & Clinical trials
Slide 21: Clinical trials
Clinical trials Quality and speed critical given large sponsor investments For personal use only Preclinical Phase I Phase II Phase III Phase IV Typical volunteer Post market surveillance Non-human studies 20 - 80 20 - 300 000’s – 0000’s size Assess drug candidate in non- Assess the safety and Asses
Slide 22: Global CRO market
Global CRO market Attractive global market tailwinds For personal use only Long-term increase in pharmaceutical R&D spend More pharmaceutical and biotech R&D being outsourced Growing pipeline of drugs under development Global pharmaceutical R&D spend ($bn) % of total Pharma and Biotech R&D outsource
Slide 23: Australia CRO market
Australia CRO market Australia is a destination of choice For personal use only Therapeutics Goods Administration (TGA) has one of the fastest regulatory processes in Australian interventional drug trial starts (# of trials) the world Start-up times for a clinical trial of a new drug is ~4-6 wee
Slide 24: Agilex Australia
Agilex Australia For personal use only • Leading provider of Phase 1 Lab services in the region for large and small molecules. 70% of Revenue • Large small to mid sized growing biotech client base taking advantage of speed and regulatory advantages • Highest brand recognition of all Australian bioan
Slide 25: Agilex Australia
Agilex Australia For personal use only Extensive experience in the highest growth therapeutic areas High exposure to leading global biotech and pharma markets Broad therapeutic experience (% revenue) Client by geographic location (% revenue) 16% 10% Oncology Asia 32% 7% Infectious disease 17% US CNS
Slide 26: Growth strategy
Growth strategy For personal use only • Targeting growth in Vaccines, Gene Therapies and Cell Therapies based on large addressable market • Targeting Pharmacodynamic endpoints (Flow cytometry, dd-PCR, Elispot, Biomarkers) to complement our strength in Pharmacokinetics • Continue to target Oncology,
Slide 27: Global Phase 2-3 studies
Global Phase 2-3 studies For personal use only • Only a minority of Phase 1 studies for Agilex translate to Phase 2 and 3 flow on work as global sites outside this region chosen by sponsors due to patient recruitment • Typically clients would prefer retaining the same bioanalytic lab across study Ph
Slide 28: For personal use only
For personal use only