Slide 1: FY20 Half Year Results
Integral Diagnostics Providing Excellence in Diagnostic Imaging in Australia and New Zealand I FY20 Half Year Results Dr. Ian Kadish (MD & CEO) Anne Lockwood (CFCO) 20 February 2020 “Good Medicine is Good Business”
Slide 2: Today’s presenters
Today’s presenters Dr. Ian Kadish Anne Lockwood Managing Director and Chief Executive Officer Chief Financial Commercial Officer Joined Integral Diagnostics in May 2017 Joined Integral Diagnostics in 2016 and appointed as Chief Financial Officer in September 2017 Has held roles including CSC H
Slide 3: 1H20 Financial highlights
1H20 Financial highlights Delivered above market, organic growth as well as growth from acquisitions vs 1H19 15.3% growth in operating revenue 9.7% growth in operating EBITDA 10.1% growth in operating NPAT 1.9% growth in Statutory NPAT Completed the acquisition of the Imaging Queensland
Slide 4: 1H20 Operational highlights
1H20 Operational highlights Expanded operations Completed redevelopment of John Flynn Hospital on the Gold Coast including first to market privately installed Digital PET as well as a Cardiac CT Completed redevelopment of St John of God Hospital in Ballarat including the co-location of a 3T an
Slide 5: 1. 1H20 financial performance
1. 1H20 financial performance Confidential / Draft 4
Slide 6: Results prior to impact of AASB 16
Results prior to impact of AASB 16(1) Operating 1H20 results delivered growth both organically and from acquisitions $ millions 1H20 1H19 Change ($) Change (%) Operating revenue(2) 131.8 114.3 17.5 15.3% Operating EBITDA (3) 29.3 26.7 2.6 9.7% EBITDA operating margin 22.2% 23.4% (1.2)% (5.1)% Operat
Slide 7: Results with impact of AASB 16 to 1H20
Results with impact of AASB 16 to 1H20(1) Upward impact to 1H20 EBITDA ($5.3m), EBIT ($1.5m) and NPAT ($0.2m) $ millions 1H20 1H19 (6) Change ($) Change (%) Operating revenue(2) ( no change from AASB 16) 131.8 114.3 17.5 15.3% Operating EBITDA(3) ($5.3m uplift is impact of AASB 16) 34.6 26.7 7.9 29.
Slide 8: Reconciliation of operating to statutory
Reconciliation of operating to statutory $ million 1H20 1H19 Change ($) Change (%) Operating NPAT 14.2 12.9 1.3 10.1% Non operating transactions net of tax Transaction and integration costs (2.1) (0.5) Share based payments (0.5) (0.2) Amortisation customer contracts (0.8) (1.5) Write off of Brand na
Slide 9: Dividend growth
Dividend growth IDX Dividends 10.0 Dividend cents per share 8.0 7.0 5.0 4.0 4.0 4.0 5.0 5.5 4.0 4.0 3.0 (1) FY16 FY17 FY18 FY19 FY20 Interim Dividend Final Dividend Strong consistent growth in dividends Fully franked interim dividend up 10% on previous corresponding interim dividend The 1H20 d
Slide 10: Revenue
Revenue Solid growth driven by new sites, investment in new equipment and two months contribution from Imaging Queensland Operating revenue up 15.3% to $131.8m Organic Australian revenue 1H20(1) $109.0m (1H19 $102.1m) – up $6.9m, 6.8%(2) benefits growth (Medicare(3) 6.5%) and 4.3% (Medicare 2.9%)
Slide 11: Operating expenditure
Operating expenditure IDX continues to focus on cost control, whilst investing to support our growth outlook IDX delivers industry leading operating margins across Australia and New Zealand Employee costs increased by 1.3% as a % of revenue driven by group wide wage increases for our people and in
Slide 12: Capital management – Post AASB 16 application
Capital management – Post AASB 16 application Strong balance sheet with reduced leverage to support on-going growth and acquisitions $ millions 31 Dec 19 30 Jun 19 31 Dec 18 1H20 net debt of $134.8m (1H19: $116.8m) Cash and cash equivalents 26.8 21.0 24.2 Reducing 2.0x EBITDA prior to one off tr
Slide 13: Cashflow and cash conversion
Cashflow and cash conversion Strong business performance and cash conversion reflected in free cash flow growth 1H20 1H20 The application of AASB 16 will result in the $ millions Pre Post 1H19 same free cash flows (after adjusting for AASB 16 AASB 16 cashflows on leases) however, conversion % will
Slide 14: Capital expenditure
Capital expenditure Increase in capex commensurate with size of the business and investment for future growth in line with our strategy $ millions(1) 1H20 1H19 FY20 Est FY19 Replacement 5.3 4.3 8.6 10.7 Growth 11.2 1.6 16.5 9.7 Total 16.5 5.9 25.1 20.4 Depreciation 6.5 5.3 Replacement capex of $5.3m
Slide 15: 2. Market update
2. Market update Confidential / Draft 14
Slide 16: Industry growth rates remain stable
Industry growth rates remain stable – benefits continue to increase versus relatively flat volumes due to higher use of MRI and PET modalities Industry growth 12 month rolling growth rate by services 12 month rolling growth rate by benefits -- Long Term Average 6.8% -- Long Term Average 5.2% 12.0% 1
Slide 17: Regulatory environment activity
Regulatory environment activity Australia: MRI Licences 52 full MRI Licenses issued in FY19 of which IDX received an upgrade from a partial to full at Pindara Hospital on the Gold Coast. Competitors licences issued in Geelong and Mandurah have not materially impacted IDX’s MRI performance in these
Slide 18: Regulatory environment New Zealand
Regulatory environment New Zealand New Zealand: No material changes. Annual indexation provided across all contracts. The Auckland DI market is expected to continue to grow, driven by strong net migration, ageing demographics and adoption of new technologies that improve patient outcomes. The 20
Slide 19: 3. Strategy
3. Strategy Confidential / Draft 18
Slide 20: IDX now operates in five key markets
IDX now operates in five key markets Total IDX Geographic Western Victoria Queensland New Zealand Queensland Market Australia Ballarat, Geelong, Gold Coast, South West Sunshine Coast, Warrnambool Core markets Toowoomba Western Auckland Rockhampton and outer and Mackay Australia and Gladstone western
Slide 21: Management’s FY20 strategy – good medicine is still good business
Management’s FY20 strategy – good medicine is still good business Strategy 1 Grow existing business and margin 2 Strategic acquisitions Drive organic growth, business Drive our Drivers of Medical integration and Optimise environmental, Further disciplined execution strategy leadership further techno
Slide 22: 2HFY20 Key priorities and focus
2HFY20 Key priorities and focus 2H20 Priorities and Focus Continue to integrate Imaging Queensland into the IDX Group and select best of breed work practices to drive operating efficiencies across the whole group Drive organic growth, business integration and Open a new Hope Island site on the G
Slide 23: Questions?
Questions? integral “A oiaenosries
Slide 24: Disclaimer
Disclaimer Some of the information contained in this presentation contains “forward-looking statements” which may not directly or exclusively relate to historical facts. These forward-looking statements reflect Integral Diagnostics Limited (IDX) current intentions, plans, expectations, assumptions a
Slide 25: Contact us
Contact us Investors & Media Dr Ian Kadish, CEO P: +61 3 5339 0704 E: ikadish@idxgroup.com.au