Australian Clinical Labs Ltd · ASX:ACL
Australian Clinical Labs — FY2023 Earnings Presentation
26 slides from Australian Clinical Labs's earnings presentation, Aug 22, 2023
Slide 1: ACL FY23 Full Year Results
ASX Announcement Australian Clinical Labs Limited ABN 62 006 823 089 Registered Office: 1868-1892 Dandenong Road Clayton VIC 3168 Australia clinicallabs.com.au Tuesday, 22 August 2023 ACL FY23 Full Year Results Disciplined operational execution and continued strong performance in line with guidance.
Slide 2: FY23 results commentary and final dividend
financial performance, including a strong top line and careful cost management in an environment in which non-COVID revenue has not yet fully returned to trend. ACL estimates there is >$50m+ of latent revenue opportunity for ACL if the market had performed on trend in FY23 and expects the volume to
Slide 3: Investor and Analyst Results Briefing
takeover bid for all of the ordinary shares in Healius Limited. Investor and Analyst Results Briefing ACL Chief Executive Officer and Executive Director, Melinda McGrath, and Chief Financial Officer, James Davison, will host a webcast for investors and analysts today at 11am (Melbourne time). Partic
Slide 4: FY23 Results Presentation
FY23 Results Presentation Melinda McGrath CEO and Executive Director James Davison CFO August 22nd 2023 0
Slide 5: Contents
Contents • Overview • FY23 Financials Results • Operational Update • Outlook • Appendix 1
Slide 6: Overview
Overview Melinda McGrath, CEO and Executive Director 2
Slide 7: FY23 Results – Financial Highlights
FY23 Results – Financial Highlights FY23 results - Disciplined operational execution and continued strong financial performance. EBIT 1 $70.3m in line with guidance of $68-74m • Key highlights from FY23 include: - Revenue of $697.1m - EBITDA1 of $193.0m (27.7% margin) - EBIT1 of $70.3m (10.1% margin
Slide 8: Outlook: Market Growth
Outlook: Market Growth Market Non-COVID pathology episodes are 10 to 15% below trend (>$50M impact on ACL revenue). There are early signs of recovery towards the trend as market drivers improve Comments National Pathology Episodes (ex COVID) #m, FY10 – FY23 COVID-19 • There has been a delay in the r
Slide 9: FY23 Results – Operational, Clinical and Strategic Highlights
FY23 Results – Operational, Clinical and Strategic Highlights Removed COVID related costs in a timely and disciplined manner, completed the integration of Medlab ahead of plan and continued focus on clinical innovation as a core strategy • Key operational highlights in FY23 include: • Disciplined wi
Slide 10: FY23 Results – ESG highlights
FY23 Results – ESG highlights Third year of execution of ACL’s ESG strategy continues to deliver strong performance across all areas of our ESG Mission Environmental Social Corporate Governance Carbon Emissions Injury reduction Board/management composition 1.06kg CO2 per episode down from 1.4kg in F
Slide 11: Financial Results Overview
Financial Results Overview James Davison, CFO 7
Slide 12: FY23 Profit and Loss
FY23 Profit and Loss ACL delivered a strong underlying result for FY23, despite the unwinding of COVID revenue, by actively managing its cost structure and focus on non-COVID revenue growth as the market returns to trend growth • In FY23, ACL generated $697.1m of revenue, $193.0m of EBITDA1, $70.3m
Slide 13: FY23 Cash flow
FY23 Cash flow ACL generated strong operating cash flow (after Capex) of $52.2m with a 80% cash conversion ratio Actual Actual Actual AUD in millions FY23 FY22 1H FY23 2H FY23 EBITDA 184.7 372.7 99.8 84.9 Non-cash items (3.1) 1.3 (4.2) 1.1 Property related payments AASB 16 (116.2) (102.0) (57.2) (59
Slide 14: FY23 Balance Sheet
FY23 Balance Sheet Net Debt was $45.7m (0.7x LTM AASB-117 EBITDA) as ACL maintained low levels of gearing; strong balance sheet with head room for growth initiatives and dividend distribution Comments • Cash balance of $20.0m as at 30 June 2023 • Trade and other receivables decreased to $73.7m as th
Slide 15: Growth and Strategic Initiatives
Growth and Strategic Initiatives Melinda McGrath, CEO and Executive Director 11
Slide 16: Digitisation highlights
Digitisation highlights ACL continues to enhance its suite of customer friendly e-Health products including eOrders, e-Downloads and eResults. SMS eRequests is also now available for patients • ACL’s has rolled out eResults which improve clinical outcomes: • SMS eRequests allow patients to receive e
Slide 17: Partnership with Geneseq
Partnership with Geneseq ACL made a strategic investment in Geneseq in 2018 to develop a multi tissue and blood (plasma) genomic test for melanoma ACL/Geneseq partnership Major Milestone Achieved • Test has achieved very high validation scores. In July 23, Geneseq published its ground-breaking resea
Slide 18: Genetic testing highlights
Genetic testing highlights As a part of its growth plan, ACL has continued its commitment to bring new genetic tests to Australia. ACL has already secured sole provider status of EndoPredict and Liquid Biopsy • ACL is the only pathology provider in Australia currently offering • Aspect Liquid Biopsy
Slide 19: Superior Operating Model
Superior Operating Model ACL believes its strong financial performance is underpinned by its superior operating model driven by the strength of its internal systems, processes and clinical and management culture 4 Strong management culture 3 Disciplined capital • Clinical and management culture, whi
Slide 20: 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 Continue to progress Improvements takeover bid for Embedded Healius Revenue Continue to improve Opportunities and gr
Slide 21: Outlook
Outlook Melinda McGrath, CEO and Executive Director 17
Slide 22: Outlook for FY24
Outlook for FY24 In FY24, ACL will continue to focus on capturing above market revenue growth, delivering operating efficiencies and its ESG performance • In FY24, ACL will focus on: • Continuing to capture above market growth in revenue through disciplined new ACC openings, new test initiatives and
Slide 23: Appendix
Appendix AUSTRALIAN “Clinicalads
Slide 24: 1H FY23 indebtedness
1H FY23 indebtedness Conservative net leverage provides significant headroom and financial flexibility Key terms of banking facilities: - Margin of 1.5% (when < 1.5x EBITDA) - Net leverage covenant < 3.5x - Fixed charge cover ratio > 1.45x 20
Slide 25: Reconciliation AASB 16 to AASB 117
Reconciliation AASB 16 to AASB 117 21
Slide 26: 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
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