Australian Clinical Labs Ltd · ASX:ACL
Australian Clinical Labs — Investor Presentation (February 2022)
23 slides from Australian Clinical Labs's investor presentation, Feb 24, 2022
Slide 1: FY22 First Half Results Presentation
FY22 First Half Results Presentation Melinda McGrath CEO and Executive Director James Davison CFO February 2022 0
Slide 2: Contents
Contents • 1H FY22 Highlights • Financial Results • Operational and Strategic Update • Outlook and Q&A • Appendix 1
Slide 3: ACL Highlights
ACL Highlights Melinda McGrath, CEO and Executive Director 2
Slide 4: 1H FY22 Results – Financial Highlights
1H FY22 Results – Financial Highlights 1H FY22* results demonstrate operating leverage, scalability and operational flexibility • Outperformed forecasts: • Total Revenue of 538.0m, 61.2% ahead of 1H FY21 • 1H FY22 non-COVID revenue growth of 2.8%, vs. 1H FY21, returning to trend • EBITDA of $239.3m,
Slide 5: 1H FY22 Results – Operational Highlights
1H FY22 Results – Operational Highlights 1H FY22 Results demonstrate scalability and operational flexibility • Successful completion of Medlab acquisition on 20 December 2021 was a highlight • Final payment ~$52m from $60m due to contracted purchase price adjustments • Majority of synergies to be ac
Slide 6: Medlab Acquisition to deliver stronger synergies than originally anticipated
Medlab Acquisition to deliver stronger synergies than originally anticipated Acquisition of Medlab Pathology will deliver a doubling of market share in the largest market of NSW and a strong market entry into Queensland Medlab Overview Acquisition update • Acquisition completed on 20th December 2021
Slide 7: 1H FY22 Results - ESG focus
1H FY22 Results - ESG focus ACL has made ESG central to its operations and has made progress on its 2023 Environmental, Social and Governance (ESG) strategy By 2023 Focus Issue Target Measurement 1H FY22 Update Scope 1 and 2 emissions to be measured, published in 2022. Scope 1 and 2 results, total T
Slide 8: 1H FY22 Results Overview
1H FY22 Results Overview James Davison, CFO 7
Slide 9: 1H FY22 Profit and Loss
1H FY22 Profit and Loss In the past 12 months ACL achieved NPAT of $175.7m of which $130.3m was achieved in the past 6 months. This was materially higher than the prospectus forecast • In 1H FY22 generated $538.0m of Revenue, $239.3m of EBITDA, $191.0m of EBIT and $130.3m of NPAT in 1H FY22. Over th
Slide 10: 1H FY22 Cash flow
1H FY22 Cash flow ACL generated $147.8m of free cash flow which was primarily used to pay down debt and acquire Medlab • Negative working capital in 1H FY22 of $36.5m due to Omicron peak in December and payment cycle for work. This will reverse in 2H FY22 • Capex includes incremental investment in Q
Slide 11: 1H FY22 Balance Sheet
1H FY22 Balance Sheet Strengthened balance sheet, with ACL having a net cash position of $2.8m (excluding lease liabilities) compared with a net debt position of $64.1m as at 30th June 2021 Dec-21 Jun-21 AUD in millions Actual Actual Comments Cash and cash equivalents 47.3 35.2 • Cash balance $47.3m
Slide 12: Operational and Strategic Update
Operational and Strategic Update Melinda McGrath, CEO 11
Slide 13: Response to COVID
Response to COVID ACL played a critical role in Australia’s response to COVID, including the recent Omicron wave • Substantial and rapid scale up in COVID testing was enabled by best practice efficiency, lab technology and information systems • Frontline staff worked tirelessly to support the commun
Slide 14: Operational update: Investment in medium term growth
Operational update: Investment in medium term growth ACL has continued to drive its growth plan and invest in operating efficiency Continued roll out of market leading logistics and courier automation platform across geographies: – Route optimisation that has reduced unnecessary stops and improved
Slide 15: Strategic update: Resilient Portfolio
Strategic update: Resilient Portfolio ACL has established a resilient portfolio of capabilities that will perform in both pandemic and endemic conditions Resilient Portfolio • ACL has established a resilient business through its investments in a: - National unified pathology system with a single Lab
Slide 16: 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 17: Outlook for 2H FY22
Outlook for 2H FY22 ACL expects to continue to benefit from the continued elevated demand for pathology testing from both COVID and the rebound in non-COVID testing During 2H FY22, ACL anticipates: • Testing for COVID to continue to moderate as the response to COVID transitions to an endemic virus.
Slide 18: Investment highlights
Investment highlights Excluding COVID, Australian pathology is estimated to be a A$5.8 billion market(1), anticipated to grow between 1 ~4% and ~6% p.a. over the five years to FY2025(2) 2 COVID as an endemic virus expected to grow overall pathology market from pre-COVID levels 3 Medlab acquisition f
Slide 19: Appendix
Appendix AUSTRALIAN “Clinicalads
Slide 20: Highly experienced management team with a performance based culture
Highly experienced management team with a performance based culture The management team have decades of pathology experience and have transformed ACL into a leading private pathology provider Industry Experience Industry Experience Melinda McGrath Joe Geran >32 years in healthcare >22 years in healt
Slide 21: 1H FY22 indebtedness
1H FY22 indebtedness ACL now has a net cash position (excluding lease liabilities) Key terms of banking facilities: • Margin of 1.5% (when < 1.5x EBITDA) • Net leverage covenant < 3.5x • Fixed charge cover ratio > 1.5x 20
Slide 22: Reconciliation AASB 16 to AASB 117
Reconciliation AASB 16 to AASB 117 21
Slide 23: 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
Australian Clinical Labs — Investor Presentation (February 2022) on 6ix