Australian Clinical Labs Ltd · ASX:ACL
Australian Clinical Labs — Investor Presentation (February 2024)
25 slides from Australian Clinical Labs's investor presentation, Feb 28, 2024
Slide 1: ACL 1H24 Financial Results
ASX Announcement Australian Clinical Labs Limited ABN 94 645 711 128 Registered Office: 1868-1892 Dandenong Road Clayton VIC 3168 Australia clinicallabs.com.au Wednesday, 28 February 2024 ACL 1H24 FINANCIAL RESULTS The following announcements to the market are attached: Appendix 4D 1H24 financial st
Slide 2: ACL FY24 First Half Results – Delivered despite a challenging macro environment
ASX Announcement Australian Clinical Labs Limited ABN 62 006 823 089 Registered Office: 1868-1892 Dandenong Road Clayton VIC 3168 Australia clinicallabs.com.au Wednesday, 28 February 2024 ACL FY24 First Half Results – Delivered despite a challenging macro environment Disciplined cost base management
Slide 3: FY24 Revised Guidance and CEO comments
• ACL continues to drive improved operational efficiencies to protect margins in a subdued revenue environment. Compared to pre COVID, ACL has realized labor cost savings through advancements in lab productivity, courier route efficiencies and optimization of back office functions with labour as a %
Slide 4: Webcast and contact details
will host a webcast for investors and analysts today at 11am (Melbourne time). Participants can register for the webcast by accessing this link: https://clinicallabs-au.zoom.us/webinar/register/WN_myRwvtQXTpy-ZdtyH-XDhg An archive of the briefing will be available afterwards at: https://investors.cl
Slide 5: FY24 First Half Results Presentation
FY24 First Half Results Presentation Melinda McGrath CEO and Executive Director James Davison CFO February 2024 0
Slide 6: Contents
Contents • Overview • 1H FY24 Financials Results • Industry Outlook & Growth Strategy • Appendix 1
Slide 7: Overview
Overview Melinda McGrath, CEO and Executive Director 2
Slide 8: 1H FY24 Results – Financial Highlights
1H FY24 Results – Financial Highlights In 1H FY24, ACL recorded underlying EBITDA of $87.1M and underlying EBIT of $23.4M which was in line with company expectations on the profit phasing of the year based on exiting the pandemic • In 1H FY24, ACL achieved: – Total Revenue of $337.3M – Underlying EB
Slide 9: FY24 Revised Guidance
FY24 Revised Guidance ACL expects FY24 underlying EBIT of $60m-$65M. H2 expected to be stronger than H1 due to higher volumes typically experienced in H2 and run rate impact of cost efficiencies implemented in H1 FY24 exiting the pandemic • ACL expects underlying EBIT in FY24 to be $60M-$65M1 based
Slide 10: Acquisitions Update
Acquisitions Update ACL continues to actively explore value accretive acquisition opportunities for the business as part of its growth strategy. ACL will continue to take a disciplined approach to acquisitions, leveraging the business’s strong acquisition experience Healius Acquisition Other Austral
Slide 11: 1H FY24 Results – ESG highlights
1H FY24 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 1.25kg CO2 per episode down from 1.4kg i
Slide 12: 1H FY24 Results – Operational & Strategic Highlights
1H FY24 Results – Operational & Strategic Highlights We continue our disciplined focus on material labour cost savings through productivity improvements as well as ongoing investment in innovation including digitisation and emerging tests • Key operational highlights in 1H FY24 include: • Since pre-
Slide 13: Financial Results Overview
Financial Results Overview James Davison, CFO 8
Slide 14: 1H FY24 Profit and Loss
1H FY24 Profit and Loss ACL recorded underlying EBITDA of $87.1M and underlying EBIT of $23.4M. Business expected to return to >10% EBIT margin in H2 FY24 • In 1H FY24, ACL generated $337.3M of revenue, $87.1M of underlying EBITDA, $23.4M of underlying EBIT and $10.3M of underlying NPAT • COVID reve
Slide 15: 1H FY24 Cash flow
1H FY24 Cash flow ACL generated operating cash flow of $21.6M with cash conversion ratio of 100% • Flat working capital across 1H, $9.2M improvement on pcp driving 100% conversion in seasonally lower 1H. • Capex of $3.8M (1% of revenue), with key buckets being laboratory equipment ($1.2M), collectio
Slide 16: 1H FY24 Balance Sheet
1H FY24 Balance Sheet Net Debt (ex-lease liabilities) of $53.8M remains conservative (0.8x of LTM Underlying AASB117 EBITDA) Comments • Cash balance of $24.9M as at 31 December 2023 • Receivables and inventory profile largely unchanged • Net Debt position (excluding lease liability) of $53.8M. • Int
Slide 17: Industry Outlook & Growth Strategy
Industry Outlook & Growth Strategy Melinda McGrath, CEO and Executive Director 12
Slide 18: Market Growth
Market Growth Non-covid pathology volumes continue to lag historical trends. ACL continues to expect volumes to return to trend over time. Initiatives put in place by Federal Government in November expected to begin impacting in H2 Pathology Episodes (ex COVID) #m, FY09 – FY24F COVID-19 60 • The pat
Slide 19: Australian Pathology Campaign: Keep Pathology Bulk Billed
Australian Pathology Campaign: Keep Pathology Bulk Billed Australian Pathology, the Pathology Peak Body, has launched a national campaign “Keep Pathology Bulk Billed” Pathology Australia has recently launched a national campaign “Keep Pathology Bulk Billed”, which calls on the Federal Government t
Slide 20: Growth Priorities
Growth Priorities ACL’s focus in H2 is on continuing its strategy of disciplined footprint expansion, ongoing operational efficiency initiatives and investment in its Lab of the Future program Disciplined Network Expansion Operational Efficiency Initiatives ACL is focused on sustainable ACL’s busine
Slide 21: Appendix
Appendix AUSTRALIAN “Clinicalabs
Slide 22: 1H FY24 indebtedness
1H FY24 indebtedness Conservative net leverage provides significant headroom and financial flexibility Key terms of banking facilities: - Margin of 1.5% (when < 1.5x EBITDA) 17
Slide 23: Reconciliation between Reported & Underlying EBITDA, EBIT and NPAT
Reconciliation between Reported & Underlying EBITDA, EBIT and NPAT • Adjustments between reported and underlying reflect: • $4.0M of costs related to Healius takeover • $1.2M asset write down relating to an asset in 3rd party storage where storage unit burnt down. Insurance claim pending which could
Slide 24: Reconciliation AASB 16 to AASB 117
Reconciliation AASB 16 to AASB 117 19
Slide 25: 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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