Slide 1: FY 2023 Results
tihealius FY 2023 Results 30 August 2023
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may include forward-looking statements about our financial results, guidance and business prospects that may involve risks and uncertainties, many of which are outside the control of Healius Limited. Readers are cautioned not to place undue reliance on fo
Slide 3: Group overview
Group overview Maxine Jaquet, CEO & Managing Director :thealius
Slide 4: FY23 results: Underlying EBIT in line with guidance
FY23 results: Underlying EBIT in line with guidance Revenue BAU Underlying EBIT Performance highlights $ 1.6b $ 99m * Group revenue BAU up 6.3%. * Imaging revenue ahead of market $1.53b in pe, $487m in pop . i is * Pathology revenue recovering Underlying NPAT Reported net loss after tax H2 v HI UEBI
Slide 5: Group goals & actions
Group goals & actions @ Putting the right people in the right roles Setting a new level of expectation for the leadership team Growth to Driving a culture Strategic initiatives targeting a higher-margin revenue mix exceed market of high recover erformance a F avi ae. y P Data analytics increasingly
Slide 6: Pathology market growth
Pathology market growth Pathology benefits paid ex COVID (actual versus long-term growth trend of 4-5%), $m Industry analysis shows the market has grown below trend over the last 4 years (FYI9-FY23) Hl ves actual — — Trend Historical market growth 4-5% CAGR 2,915 MBS 2.2% CAGR Fundamental growth dri
Slide 7: Specialist segment is driving market growth
Specialist segment is driving market growth GP and Specialist attendances, rolling 12-mths - GP attendances down 11% last 12 months S. Qo 24% 18% es a = io 2% - 7 s & -16% ~18% Source: 24% 20% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2% 8% 6% 8% “10% 12% 14% 18% 18% AUSTRALIAN Consultation Services -
Slide 8: Diagnostic imaging market
Diagnostic imaging market Lumus Imaging revenue is up 7.3% v pcp, 9.0% ex Medical Centres (compared to 6.8% for the MBS market) Diagnostic imaging benefits paid (actual versus long-term growth trend of 6-7%), $m Mes actual — — Trend 3,847 FYI9 Growth (YOY) Source: Healius analysis of ADIA data DI ma
Slide 9: Imaging trending towards higher-end modalities
Imaging trending towards higher-end modalities MBS annual benefits for imaging modalities, $m 4,608 MRI SEA) Nuclear Med 513 300 CT DR (incl. X-ray) Ultrasound FYI9 FY20 FY21 FY22 FY23 Source: Healius analysis of ADIA data CAGR 4.6% 0.8% Increasing complexity of referrals driving higher-end modaliti
Slide 10: Digitisation of diagnostic processes well progressed
Digitisation of diagnostic processes well progressed Delivery is 50% complete with sequencing and prioritisation determined by business value Build Rollout What we are building How it creates value @ Complete O Incomplete Referrals Hub ~ Better integration with doctor workflows + Capture telehealth
Slide 11: Deploying and accelerating AI & digital pathology
Deploying and accelerating Al & digital pathology © Artificial Intelligence Value-Based Use: Focus on areas with material productivity or clinical benefits Aggregator Model: Leveraging unprecedented growth in proven vendors worldwide Data and Workflow: Invest in data infrastructure and digital workf
Slide 12: Dr Jan van Rooyen and Dr Phil Lucas
Dr Jan van Rooyen Pathologist and business leader CEO of AMPATH for two decades Experienced in pathology business consolidation and operational transformation Dr Phil Lucas Radiologist and business leader Director of PRP Imaging for 15 years Experienced in operating and scaling up imaging businesses
Slide 13: Pathology strategy priorities
Continued Driving E-referral network higher yield across rollout optimisation all segments Continued evolution of cost Digitised Expanding base (digitisation, collection and the clinical automation of workflows) service experience offering tthealius
Slide 14: Imaging strategy priorities
Comprehensive Driving Radiologist community sites with higher revenue engagement higher-end modalities per site Enhancing strong Atenabled position in hospital workflows & segment digital products tthealius
Slide 15: Key financials
Key financials Paul Anderson, Chief Financial Officer tthealius
Slide 16: Group Results
Group Results FY23 FY22 $m $m Chg Underlying EBIT in line with guidance BAU revenue 1623.2 1,526.8 a8 * Group BAU revenues up 6.3% / COVID-19 reduced 89% COMBA revenue 838 763.5 (820%) * Pathology experiencing continued GP referral softness Total lyi . . - ‘otal revenue (Underlying) 1,707.0 2,290.3
Slide 17: Group Results: 2H23 v 1H23
Group Results: 2H23 v 1H23 2H23 1H23 $m $m Chg % BAU revenue 823.5 799.7 30% COVID-19 revenue 19.4 64.4 (69.9%) Total revenue (Underlying) 842.9 864.1 (25%) EBITDA (Underlying) 1994 1768 128% EBITDA margin % 23.7% 20.5% 15.6% D&A (140.4) (136.8) 26% EBIT (Underlying) 59.0 40.0 475% EBIT margin % 7.0
Slide 18: Group Costs: 1H23 v reset v 2H23
Group Costs: 1H23 v reset v 2H23 Costs (underlying) as a % of Revenue $824m $766m $784m 1.8% 10.8% 9.9% “ _ 51.0% 50.2% 1H23 1H23 after 2H23 reset! Reset % margins based on pro forma 1H23 BAU revenue of $800m and $ Total costs Other expenses Consumables Network (Property and D&A) Labour 18 Significa
Slide 19: Pathology
Pathology FY23 FY22 $m $m Chg % BAU revenue 1155.8 45.7 3.6% COVID-19 revenue 83.8 763.5 (89.0%) Agilex revenue 327 N12 1920% EBITDA! 293.5 702.6 (68.2%) EBITDA margin 23.1% 37.2% (37.9%) EBIT 78.7 498.4 (84.2%) EBIT margin 6.2% 26.4% (76.5%) 2H23 1H23 $m $m Chg % EBIT margin 7.5% 4.9% 52.2% TFY22 r
Slide 20: Agilex Biolabs
Agilex Biolabs FY23 FY22 $m $m Chg % Revenue 327 1.2 1920% EBITDA 44 04 — 10000% EBIT 13 (0.3) na EBIT margin 4.0% (27%) na Note: Healius ownershi from Jan 2022. Management transition complete, scale issues addressed, Q4 run rate strong into FY24 * Q4 strong exit run-rate for FY24 Major improvements
Slide 21: Lumus Imaging
Lumus Imaging FY23 FY22 $m $m Chg % FY23 revenue growth above market - EBIT margin nearly doubling with greater efficiency Gross revenue! 4911 457.7 73% . J g ; . Statutory revenue 431.2 393.9 ag Gross EMER up ales (ex MCs) with growth in volumes supported by modality mix and indexation; up 11.6% 2H
Slide 22: Cashflow aligned to revenue recognition, targeted capex for sustainable growth
Cashflow aligned to revenue recognition, targeted capex for sustainable growth FY23 Gross Operating Cashflow $404m FY23 mainte ice capex $37M FY24 maintenance capex $40-50m Cash conversion 1087 FY23 growth capex $36m 22 108% conversion of underlying EBITDA to gross operating cash flow Maintenance ca
Slide 23: Balance sheet: non-cash impairment of goodwill
Balance sheet: non-cash impairment of goodwill * Healius carries significant goodwill relating to historic acquisitions (Symbion) * Anon-cash impairment charge of $349.8m has been made to goodwill in the Pathology cash generating unit (CGU) * This impairment relates primarily to Agilex, lower foreca
Slide 24: Debt management
Debt management Disciplined capital and cost management to minimise net debt as trading conditions improve FY23 FY24 Debt Facilities * Net debt reduced to $447m ($525m FY22) * Gearing! at 3.48x —- covenant? of <4.0x * Interest cover at 4.81x - covenant of >3.0x * 48% WACDS reflecting increases in BB
Slide 25: FY24 outlook
FY24 outlook * HLS entering FY24 with momentum delivered in 2H23 + We expect to see volumes trending higher in 2H24 * Imaging market to continue current momentum through FY24 * Agilex to continue revenue and EBIT growth after a strong Q4 * Digital program to drive further operational efficiency and
Slide 26: Q&A
Q&A tthealius
Slide 27: Appendix: Reconciliations
Appendix Reconciliations
Slide 28: Underlying v Reported Reconciliation
Underlying v Reported Reconciliation FY23 FY22 FY23 FY22 $m $m $m $m Underlying EBIT 990 487.0 Underlying NPAT 257 3066 Digital transformation costs (217) (10.5) After-tax adjustments to underlying EBIT (303.8) (16.4) Transaction costs (3.2) (10.3) Tax differential for non-deductible items (101.9) 2
Slide 29: Divisional reconciliation - underlying
Divisional reconciliation - underlying Pathology Imaging Corporate Group! $m $m $m $m FY23 Revenue 12723 431.2 39 1,707.0 EBITDA 293.5 96.2 (13.5) 376.2 EBIT 787 378 (17.5) 99.0 FY22 Revenue 1890.4 393.9 65 2,290.3 EBITDA? 702.6 818 (26.2) 758.2 EBIT 498.4 19] (30.5) 487.0 1 In FY23 $0.4 million (FY
Slide 30: Appendix: Supporting slides
Appendix Supporting slides
Slide 31: Our strategy
Our strategy Diagnostics for life Supporting clinical decisions through personalised insights and superior customer experience Operating leverage Extracting maximum value & growth from our network Service Serving accessible and high-quality healthcare experiences 31 Insights Delivering precise & com
Slide 32: Group digital agenda
Group digital agenda Funding envelope $85-90M from FY21. On track and on budget Referrals Hub Appointment Booking Collections Portal Customer Engagement Pathology Courier Portal Lab Portal Histo. Cyto Micro Biochem Haem Genetics Diagnostic Imaging RIS PACS (existing) (existing) Advanced Analytics Da
Slide 33: Sustainability highlights
ility highlights of high-quality, accessible and efficient diagnostic healthcare services oO Supporter of local communities through our diagnostic services; CCI J national partnership Reduced Scope 1 & 2 emissions to 30.6k t vs 31.7k t in FY22 v Long-term renewable energy agreement from Digital init
Slide 34: Pathology services market in Australia
Pathology services market in Australia Medicare benefits paid (MBS) represents a portion of the pathology services market Market segment Payor Referrer Avg. fee (indexed to GP) Clinical trials Animal Commercial (B2B) Private hospitals Specialist out- patient Primary care Biopharma sponsors Owners (O
Slide 35: HLS has increased its ACC network productivity
HLS has increased its ACC network productivity While the total market productivity (MBS benefits per ACC) has declined over the same 4-yr period MBS (FY23 v FYI9) For HLS, FY19- I @ v FY22 saw ACC HLS BAU 1s consolidation to revenue; $m aI 05 1129 4 1156 increase yield. In FY23 selective ) expansion