Integral Diagnostics Ltd · ASX:IDX
Integral Diagnostics — Merger or Acquisition (July 2024)
16 slides from Integral Diagnostics's merger presentation, Jul 18, 2024
Slide 1: Transformative Merger with Capitol Health
TRANSFORMATIVE MERGER WITH CAPITOL HEALTH Investor Presentation Dr. Ian Kadish Managing Director and CEO Craig White CFO 18 July 2024
Slide 2: A transformative merger
A transformative merger Combination of two highly complementary diagnostic imaging businesses to realise significant and enduring benefits for all of our combined patients, doctors and shareholders ✓ Creates a leader in ANZ diagnostic Vision for MergeCo imaging, with significant and enduring benefit
Slide 3: Transaction summary
Transaction summary Integral Diagnostics and Capitol Health have entered into a Merger Implementation Deed to create one of the largest diagnostic imaging companies in ANZ ▪ Capitol shareholders to receive 0.12849 Integral shares for every Capitol share (“Merger Ratio”) Merger structure ▪ Integral a
Slide 4: Attractive strategic rationale and financial benefits
Attractive strategic rationale and financial benefits ✓ Combination of two highly complementary footprints into a more geographically diversified portfolio Significantly ✓ Combined group will have a materially greater financial profile enhanced scale ✓ Nationwide footprint of 155 clinics supported b
Slide 5: Overview of Capitol Health
Overview of Capitol Health Capitol Health is an ASX-listed pure-play provider of diagnostic imaging services to the Australian healthcare market, employing over 100 radiologists across 8 brands Overview Geographic footprint and brands 65 clinics across VIC, Over 1.4 million SA, TAS and WA procedures
Slide 6: Overview of the combined group
Overview of the combined group Merger delivers significant financial and operating scale to support future growth and enhanced ability to invest and innovate in a rapidly evolving market Synergies Combined Group Equity value1,2 594 351 945 Enterprise value1,2,3 816 413 1,229 Revenue (FY23) 441 210 6
Slide 7: Highly complementary footprints
Highly complementary footprints Combination of two highly complementary footprints into a more geographically diversified portfolio, creating a leading player in ANZ diagnostic imaging Combined clinical network of 155 practices 90 Total IDX sites 65 Total CAJ sites IDXt coverage QLD 41 WA 6 9 SA 2 N
Slide 8: Platform to drive best-in-class clinical outcomes for patients, doctors and referrers
Platform to drive best-in-class clinical outcomes for patients, doctors and referrers Significant improvement in clinical outcomes arising from merger, including deeper clinical expertise, technology benefits and enhanced clinical governance Patients Doctors and clinical staff Referrers ✓ Access to
Slide 9: Significant cost synergies expected from the Merger, with upside
Significant cost synergies expected from the Merger, with upside At least $10 million in anticipated annual pre-tax net cost synergies, with majority to be achieved within 1 year post implementation and potential for further upside Commentary Key areas of expected synergies Category Detail ✓ Run-rat
Slide 10: Revenue synergy opportunities
Revenue synergy opportunities Further upside from doctor productivity improvements and additional revenue opportunities Potential revenue synergies Focus on sub-specialty reporting Roll out of Clario to improve load sharing and utilisation Doctor productivity improvements Achieve efficiencies across
Slide 11: Well-positioned for future growth
Well-positioned for future growth The merger will enhance the capacity for the group to invest in high-end equipment and provides an opportunity to drive a step-change in teleradiology volumes through IDXt, while achieving radiologist alignment ✓ Improved ability to invest in costly higher-end imagi
Slide 12: Integration framework
Integration framework Integral will take a careful and measured approach in integrating Capitol to ensure the positive elements of both businesses are preserved Integration principles Project Management Office Integration effort to be led by a cross-functional Project Management Team with ✓ Create a
Slide 13: Recap: Key benefits of the merger
Recap: Key benefits of the merger ✓ Significantly enhanced scale ✓ Platform to drive best-in-class clinical outcomes for patients, doctors and referrers Creates a leader in diagnostic imaging across ANZ for the benefit of our combined patients, doctors ✓ Financially attractive opportunity and shareh
Slide 14: Questions
QUESTIONS
Slide 15: Disclaimer
Disclaimer 1. Some of the information contained in this 3. Past performance of IDX cannot be relied information or opinions contained in this presentation contains “forward-looking upon as an indicator of (and provides no presentation. This presentation is for statements” which may not directly or g
Slide 16: Thank you
THANK YOU
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