Slide 1: 1H FY24 Results
1H FY24 RESULTS Dr. Ian Kadish Managing Director & CEO Craig White CFO 20 February 2024
Slide 2: IDX Vision, Purpose and Values
IDX VISION, PURPOSE AND VALUES Vision: A Healthier World Purpose: Deliver The Best Health Outcome For Every Patient We Serve 2
Slide 3: Delivering on Our Values – 1H FY24
DELIVERING ON OUR VALUES – 1H FY24 • Served >600,000 patients • 254 reporting radiologists • 1,968 employees • Increased revenue by 7.2% • Undertook restructure in 163 employees to $231.3m light of prolonged cost • Performed 1.3 million • Conducted “temp-check” inflation to position the exams 91
Slide 4: 1H FY24 Financial Highlights
1H FY24 FINANCIAL HIGHLIGHTS Solid revenue growth of 7.2% offset by prolonged cost inflation to deliver Operating EBITDA growth of 8.7% and a slightly higher Operating EBITDA margin of 18.7% vs prior corresponding period of 18.5% 5.6% 8.7% 6.4% 7.2% 41.3% Net debt / Statutory decrease in increase in
Slide 5: 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. Prior to this, after coming back strongly in CY21, industry growth rates declined significantly in CY22 given the onset of the Omicron variant of COVID-19, as well as in
Slide 6: Shareholder Returns
SHAREHOLDER RETURNS Fully franked interim dividend of 2.5cps (1H FY23: 2.5cps), representing 78.9% of 1H FY24 Operating NPAT Operating EBITDA 100.0 80.0 41.5 45.4 AUD $m 60.0 46.4 38.8 40.0 52.0 20.0 36.0 39.8 43.2 29.3 - FY20 FY21 FY22 FY23 FY24 1H 2H Dividends 14.0 12.0 cents per share 10.0 7.0 8.
Slide 7: Financial Performance
FINANCIAL PERFORMANCE 1H FY24 Results
Slide 8: Results for 1H FY24
RESULTS FOR 1H FY24 AUD $m 1H FY24 1H FY23 Var. ($) Var. (%) Revenue 231.3 215.7 15.6 7.2% Operating EBITDA(1) 43.2 39.8 3.4 8.7% Operating EBITDA margin 18.7% 18.5% Operating EBITA(1) 21.2 19.6 1.6 7.9% Operating EBITA margin 9.2% 9.1% Operating NPAT(1) 7.4 7.8 (0.4) (5.6%) Operating Diluted EPS (c
Slide 9: Revenue
REVENUE Solid revenue growth of 7.2% to $231.3m • Solid revenue growth of 7.2% driven by improved Medicare indexation (3.6% increase effective 1 July 2023 and an additional 0.5% increase effective 1 November 2023, both increases excluding nuclear medicine), annualisation of FY23 out of pocket fee in
Slide 10: Operating Expenditure
OPERATING EXPENDITURE Operating expenses decreased by 20 basis points as a percentage of revenue, despite labour costs increasing by 20 basis points as a % of revenue driven by inflation and labour market supply constraints % of Group Revenue AUD $m 1H FY24 1H FY23 Var. ($) Var. (%) 1H FY24 1H FY23
Slide 11: Capital Management
CAPITAL MANAGEMENT AUD $m 31 Dec 2023 30 Jun 2023 Solid balance sheet Cash and cash equivalents 18.0 33.9 • 1H FY24 net debt of $210.0m(1) (1H FY23: $194.2m), being 3.0x(2) Trade and other receivables 22.4 21.7 EBITDA prior to non-operating transactions at 31 December 2023 (1H Other current assets 1
Slide 12: Cash Flow and Cash Conversion
CASH FLOW AND CASH CONVERSION Free cash flow conversion impacted by timing of working capital movements in 1H FY24 AUD $m 1H FY24 1H FY23 Var. ($) Var. (%) Operating EBITDA 43.2 39.8 3.4 8.7% Non-cash items in EBITDA 0.9 (0.2) 1.1 (578.8%) Changes in working capital (4.4) 16.9 (21.3) (125.9%) Cash p
Slide 13: Capital Expenditure
CAPITAL EXPENDITURE Capex investment aligned with IDX’s strategy 1H FY24 Replacement capex of $8.2m Replacement capex reflects capital sensitivity requirements, site refurbishments and other end of life equipment replacements. 1H FY24 has seen replacement or upgrade of 4 CT machines, 18 Ultrasound m
Slide 14: Regulatory Update
REGULATORY UPDATE 1H FY24 Results
Slide 15: Regulatory Environment
REGULATORY ENVIRONMENT Australia: New Zealand: MRI Licences • There is limited indexation of pricing in New Zealand, however we have received CPI like increases commencing in December 2023 • On 1 November 2022, the Federal government de-regulated MRI from the majority of private health insurers and
Slide 16: Strategy Update & Outlook
STRATEGY UPDATE & OUTLOOK 1H FY24 Results
Slide 17: Management’s Strategy – Good Medicine Is Good Business
MANAGEMENT’S STRATEGY – GOOD MEDICINE IS GOOD BUSINESS 1 Grow Existing Business and Margin 2 Strategic Acquisitions Strategy Accelerate use of Drivers of Drive organic earnings teleradiology, digital Nurture and develop Strategy in FY24 and growth, including through and AI to improve the Drive our e
Slide 18: 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 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: Environmental, Social and Governance (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) IDX continues to implement and develop its ESG strategy aligned to its values and with a view to complying with the proposed climate-related disclosure standards in Australia. Details of our ESG activities have been published in our FY23 ESG report 20
Slide 21: Questions
QUESTIONS 1H FY24 Results
Slide 22: Appendices
APPENDICES 1H FY24 Results
Slide 23: IDX Today - Group Overview – December 2023
IDX TODAY - GROUP OVERVIEW – DECEMBER 2023 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, Bris
Slide 24: Reconciliation of Operating to Reported EBITDA and Statutory NPAT
RECONCILIATION OF OPERATING TO REPORTED EBITDA AND STATUTORY NPAT AUD $m 1H FY24 1H FY23 Change ($) Change (%) Operating NPAT 7.4 7.8 (0.4) (5.6%) Non operating transactions net of tax Remeasurement of contingent consideration liabilities - 14.1 Transaction and integration benefits/(costs) (0.9) (3.
Slide 25: Supplementary Information – Items Below EBITDA
SUPPLEMENTARY INFORMATION – ITEMS BELOW EBITDA AUD $m 1H FY24 Comments Operating costs below EBITDA (excluding tax) Depreciation of property, plant & equipment 13.6 Depreciation charge on PP&E and capitalised software Depreciation of right of use assets 8.4 Formerly treated as lease expense prior to
Slide 26: Disclaimer
DISCLAIMER 1. Some of the information contained in this 3. Past performance of IDX cannot be relied 5. Reliance should not be placed on the presentation contains “forward-looking upon as an indicator of (and provides no information or opinions contained in this statements” which may not directly or
Slide 27: Thank You
THANK YOU 1H FY24 Results