Integral Diagnostics Ltd · ASX:IDX
Integral Diagnostics — Shareholder Meeting (November 2023)
25 slides from Integral Diagnostics's shareholder meeting presentation, Nov 29, 2023
Slide 1: AGM Address and Presentation by the Chair and Managing Director/CEO
T +61 3 5339 0704 E info@idxgroup.com.au Suite 9.02, Level 9, 45 William Street Melbourne Vic 3000 www.integraldiagnostics.com.au AGM Address and Presentation by the Chair and Managing Director/CEO 29 November 2023, Melbourne Attached are copies of the address and presentation to be given to sha
Slide 2: Chair Address
Integral Diagnostics Limited 2023 Annual General Meeting Chair Address Thank you shareholders, radiologists and staff for the privilege of chairing your specialist healthcare Company over the last nine years. As you know I am retiring as Chair at the end of this meeting when Mr Toby Hall, who has de
Slide 3: Chair Address (continued): FY23 performance, dividend and ESG
organic growth of 7.0% in Australia and 4.4% in New Zealand. IDX organic operating revenue growth in Australia of 7.0% compared favourably to the Medicare industry weighted average increase of 4.8% for the States in which IDX operates. FY23 Operating EBITDA increased by 13.9% to $85.2m. FY23 Operati
Slide 4: Chair Address (continued): Board succession and industry outlook
In September 2023, IDX welcomed Mr Toby Hall as an independent, non-executive Director to the Board and chair elect to replace me as Chair of the Board at the conclusion of this meeting subject to his election by shareholders. We have executed a comprehensive chair transition process alongside site
Slide 5: Managing Director and CEO Address
Integral Diagnostics Limited 2023 Annual General Meeting Managing Director and CEO Address Thank you Helen and good morning everyone. It’s good to see you all, in the room and online. I am disappointed with our YTD FY24 trading performance, particularly after delivering materially stronger second ha
Slide 6: IDXt teleradiology and AI at IDX
IDXt has grown rapidly organically and now includes 56 contracted radiologists, and reports ~12% of IDX Australian revenue. IDXt facilitates sub-specialist reporting so that patients can be triaged to a specialist radiologist as needed, adding significant value to the referrer. Teleradiology allows
Slide 7: Regulatory environment changes in Australia and New Zealand
Some of the more significant changes in the regulatory environment are noted on this slide. Australia: MRI Licences • On 1 November 2022, the Federal government de-regulated MRI services in regional and rural areas Medicare Changes • Indexation of 3.6% was announced from 1 July 2023, with further in
Slide 8: FY24 outlook, capex, depreciation and finance costs
IDX is responding to these pressures by accelerating productivity and efficiency initiatives. These actions are expected to lead to an improvement in 2H FY24 trading performance and Operating EBITDA margin compared to 1H FY24. FY24 Capex, Depreciation and Finance Costs For FY24 IDX expects: • Replac
Slide 9: Working existing assets harder
And we’re looking to work our existing assets harder • We are focussed on increasing utilisation of our current installed machine base • We’re making selected investments in higher end modalities like MRI and PET within FY24 budgeted growth capex, for example we’re commissioning a new PET CT in Sout
Slide 10: Chair Address
CHAIR ADDRESS Helen Kurincic - Chair
Slide 11: FY23 Financial Performance
FY23 FINANCIAL PERFORMANCE 71.5% 17.6% 13.9% 26.0% 22.1% 8.0% Net debt / increase in decline in increase in decline in increase in increase in EBITDA (pre- statutory operating operating operating revenue free cash AASB 16) NPAT NPAT EBITDA diluted EPS flow $25.0m $17.8m $85.2m 7.6cps $440.8m $53.1m
Slide 12: Historical Performance
HISTORICAL PERFORMANCE Revenue ($m) Operating EBITDA ($m) 93.5 440.8 85.2 360.9 75.7 74.8 348.8 274.1 53.0 231.0 FY19 FY20 FY21 FY22 FY23 FY19* FY20 FY21 FY22 FY23 Operating EBITDA Margin (%) Operating Diluted Earnings Per Share (cps) 27.6 19.0 26.8 16.2 16.6 22.9 20.8 19.3 10.2 7.6 FY19* FY20 FY21
Slide 13: Governance – ESG FY23 Highlights
GOVERNANCE – ESG FY23 HIGHLIGHTS • Dedicated ESG Report with reference to the Global Reporting Initiative (GRI) Standards and alignment with the United Nation’s Sustainable Development Goals • Developed a carbon emissions reduction strategy and continued to work on operational waste reduction • Serv
Slide 14: Governance – Board Succession
GOVERNANCE – BOARD SUCCESSION • Independent Non-Executive Director, Ms Ingrid Player, commenced in August 2023 replacing Mr John Atkin who resigned after nearly 8 years of service to the Board • Radiologist Executive Director, Dr Nazar Bokani, stepped down from the Board in August 2023 with his relo
Slide 15: Industry & IDX Overview
INDUSTRY & IDX OVERVIEW • The Company believes the fundamentals of the essential radiology industry are strong • Our industry benefits from being at the confluence of major global trends – demographic and technological: - Demographically, the ageing of the population and the increased prevalence of
Slide 16: Managing Director & CEO Address
MANAGING DIRECTOR & CEO ADDRESS Dr Ian Kadish
Slide 17: The IDX Difference
THE IDX DIFFERENCE • Our purpose at IDX is to deliver the best health outcome we can for every patient we serve - Patient NPS score of +84 - Employee engagement scores higher than industry benchmarks • Differentiating ourselves in key areas that position us strongly in the industry - Clinical leader
Slide 18: IDX Today - Group Overview
IDX TODAY - GROUP OVERVIEW 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, Sunshine S
Slide 19: 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 in group, and externally to public hospitals and pri
Slide 20: DI Industry Reflecting COVID-19 Impact: Australia
DI INDUSTRY REFLECTING COVID-19 IMPACT: AUSTRALIA Industry growth rates, on a 12–month rolling basis, reflect improvement in CY23 up to 31 October 2023. Prior to this, after coming back strongly in CY21, industry growth rates declined significantly in CY22 given the onset of the Omicron variant of C
Slide 21: Regulatory Environment
REGULATORY ENVIRONMENT Australia: New Zealand: MRI Licences • There is limited indexation of pricing in New Zealand, however we have received CPI related increases commencing in December • On 1 November 2022, the Federal government de-regulated MRI 2023 from the majority of private health funds and
Slide 22: YTD September FY24 Trading Update
YTD SEPTEMBER FY24 TRADING UPDATE On 3 November 2023, Integral Diagnostics Limited (ASX:IDX) provided the following trading update based on financial results 1 for the first quarter to 30 September 2023. Q1 FY24 FY24 Capex, Depreciation and Finance Costs • In Australia, first quarter revenue growth
Slide 23: YTD October FY24 Trading Update
YTD OCTOBER FY24 TRADING UPDATE 1 • Groupwide organic revenue growth of 9.0% YTD October 2023, compared to 7.0% growth for the prior corresponding period (pcp) • YTD October 2023 Australian organic revenues grew 9.3%, continuing to deliver a strong high acuity case mix - Adjusted for working days, Y
Slide 24: Our Focus Is on Execution of Key Operational Improvement Initiatives
OUR FOCUS IS ON EXECUTION OF KEY OPERATIONAL IMPROVEMENT INITIATIVES Improve Patient & Referrer Increase Productivity & Workforce Development Lift Asset Utilisation Experience Efficiency • Continued roll out of integrated • Enhance clinical productivity, • Simplify and reduce • Focus on improving ut
Slide 25: Disclaimer
DISCLAIMER 1. Some of the information contained in this presentation 4. To the maximum extent permitted by law, none of IDX, financial condition, assets and liabilities, financial contains “forward-looking statements” which may not or its respective affiliates or related bodies corporate position an
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