Slide 1: FY 2022 Results
FY 2022 Results 30 August 2022
Slide 2: Acknowledgement of country
Acknowledgement of country We acknowledge the Cammeraygal People of the Eora Nation as the traditional custodians of the land on which we gather today, and pay our respects to their Elders - past, present and emerging
Slide 3: Group results
Group results Group Underlying1 Reported2 $m FY 2022 FY 2021 FY 2022 FY 2021 Revenue 2,337.7 1,913.1 2,336.2 1,900.7 EBIT 492.3 266.5 467.4 255.4 NPAT (Reported inc. discontinued operations) 309.3 148.4 307.9 43.7 Dividend cps 100% franked 16.00 13.25 Year in review • Record profits driven by succes
Slide 4: Trading update
Trading update FY2023 • No guidance given due to unpredictability of COVID-19 and timing of acceleration in underlying diagnostics COVID-19 Pathology • July-August COVID-19 testing averaging 10k-12k/working day • COVID-19 testing in the range of 7k-14k/working day likely to continue for foreseeable
Slide 5: Realising opportunities for high-margin growth
Realising opportunities for high-margin growth Pathology • On-going development of specialties including genomics, vets, precision medicine • C2N Diagnostics partnership: • Partnership with leading provider of brain health laboratory services • High-quality blood tests for cognitive impairment, prov
Slide 6: Innovator in consumer services
Innovator in consumer services Travel COVID #1 to market with travel COVID-19 testing services in Australia. 40%+ Testing market share Range of subsequent market innovations such as Authentication QR- codes, same-day turnaround and bespoke Travel Reports COVID Drive- #1 to market with fully automate
Slide 7: Sustainability
Sustainability Healius will be a socially responsible company that creates value for all stakeholders including consumers, employees and investors through our core values of care, compassion and quality • • Sustainability Sustainability Vision created Five priority areas identified1 • Roadmaps devel
Slide 8: Highly cash-generative portfolio
Highly cash-generative portfolio Cash flow Strong cash generation1 • Strong cash generation with cash conversion >90% of EBITDA +18% • Free cash flow up 10% to >$530m, approximately 45% returned to shareholders • Targeted spend on network, equipment and branding: 677.1 571.9 • Investment in digital
Slide 9: Cost containment in inflationary environment
Cost containment in inflationary environment 2,338 Revenue +22% Record activity and revenue with translation to earnings through 492 disciplined cost management and efficiencies from SIP UEBIT +85% 1,913 267 Increase resulting from full year Medical Centres 3rd party leases (~50% 279 Depreciation &
Slide 10: SIP Phase II expected to meet its targets
SIP Phase II expected to meet its targets Targets set in Dec-20 Progress in FY 2022 and outlook for FY 2023 $30m (annualised) initiatives implemented in FY 2022. $67m of incremental EBIT from SIP initiatives Remaining pipeline higher than target value $12m implementation costs p.a. for SIP Phase II
Slide 11: Healius Digital on track and on budget
Healius Digital on track and on budget Funding envelope: $85-90M Progress in FY 2022… FY 2023 deliverables… 1. Enablement of ACC network with online connectivity and computers I. Expand Electronic Referrals market coverage 2. Electronic Referrals solution for doctors to send Pathology and II. Launch
Slide 12: Multiple growth pathways for double-digit ROIC
Multiple growth pathways for double-digit ROIC Pathology Diagnostic Imaging High quality ACC network following a period Successful recent imaging sites (e.g. Highfields) Network of rationalisation with revenue per ACC Investment in greenfields and higher margin expansion +10.9% since FY 2019 modalit
Slide 13: Stronger business than FY 2019
Stronger business than FY 2019 Simpler portfolio More competitive Broader growth options FY19 EBIT1 FY22 EBIT1 ROIC, %2 SIP (Phase 1+2, $m) FY19 FY22 4% Remaining target Achieved • Medical Centres Clinical trials 20% 1% • Day Hospitals Digital health $187M $523M FY19 7.1 60 0 • IVF > Genomics
Slide 14: Industry-leading performance in FY 2022
Industry-leading performance in FY 2022 Operations & Transformation & Capital allocation & profitability improvement investments 33% EBITDA margin 45% of SIP Phase 2 target Agilex revenue up 52% on pcp delivered Network scale-up (pathology DI acquisitions delivering double- episodes up >40
Slide 15: Appendices
Appendices tihealius
Slide 16: Divisional reconciliation
Divisional reconciliation FY 2022 1 Pathology Imaging Day Hospitals Corporate Group $m Revenue 1,890.4 393.9 48.7 6.5 2,337.7 EBITDA 698.4 79.7 12.6 (19.9) 770.8 Depreciation and amortisation (200.0) (60.6) (7.3) (10.6) (278.5) EBIT 498.4 19.1 5.3 (30.5) 492.3 FY 2021 Pathology Imaging Day Hospitals
Slide 17: Pathology
Pathology Underlying FY 2022 FY 2021 Better/ $m $m (worse) % Revenue 1,890.4 1,452.1 30.2 EBITDA 698.4 428.3 63.1 Depreciation and amortisation (200.0) (175.5) (14.0) EBIT 498.4 252.8 97.2 Capital expenditure 43.7 31.0 (41.0) • Strong FY22 performance due to COVID testing for Delta and Omicron varia
Slide 18: Lumus Imaging
Lumus Imaging Underlying Better/ FY 2022 FY 2021 $m $m (worse) % Revenue 393.9 406.9 (3.2) EBITDA 79.7 84.5 (5.7) Depreciation and amortisation (60.6) (53.6) (13.1) EBIT 19.1 30.9 (38.2) Capital expenditure 41.0 18.6 Large • Revenue reflects industry-wide impacts of COVID-19 lockdowns in 1H 2022 and
Slide 19: Day Hospitals
Day Hospitals Underlying FY 2022 FY 2021 Better/ $m $m (worse) % Revenue 48.7 49.5 (1.6) EBITDA 12.6 15.5 (18.7) Depreciation and amortisation (7.3) (6.5) (12.3) EBIT 5.3 9.0 (41.1) Capital expenditure 3.7 2.9 (27.6) • Westside Private revenue up 12%. Overall revenue and procedure numbers comparable
Slide 20: Corporate
Corporate Underlying FY 2022 FY 2021 Better/ $m $m (worse) % Revenue1 6.5 6.8 n.a. EBITDA (19.9) (14.5) (37.2) Depreciation and amortisation (10.6) (11.7) 9.4 EBIT (30.5) (26.2) (16.4) Capital expenditure 5.1 5.8 12.1 • As foreshadowed at FY 2021 results, corporate costs include investment in a capa
Slide 21: Underlying v reported reconciliation
Underlying v reported reconciliation FY 2022 Underlying EBIT 492.3 Key items Pathology digital transformation (10.5) Corporate transactions (10.5) Agilex acquisition, Adora disposal costs and other corporate transactions Transactions with discontinued operations (3.9) Rental income in corporate from
Slide 22: AASB 16: Key impacts FY 2022
AASB 16: Key impacts FY 2022 P&L FY 2022 FY 2022 $m $m Property & other expenses 242.2 Operating lease expense reversed EBITDA 242.2 Depreciation (219.7) Depreciation of right of use asset recognised EBIT 22.5 Finance costs (35.0) Interest paid on lease liability recognised Profit before tax (12.5)
Slide 23: Background information
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Slide 24: Healius investment proposition
Healius investment proposition Well positioned in attractive markets Ready to capture growth & create value Solid core market fundamentals Ability to consolidate & integrate for network growth Scaled diagnostics operator Cost out track record Defensible incumbent positions Compelling dig
Slide 25: A specialist diagnostic business
A specialist diagnostic business We are focused on leveraging established market positions, management capability and scalability in diagnostics while looking to bring forward benefit realisation for long-term growth inherent in Day Hospitals Pathology Imaging Day Hospitals* • Scale player in mature
Slide 26: Further progress on SIP Phase II
Pathology Completed In progress Further progress on SIP Phase II Imaging Current implementation status Major initiatives Division Scoping Design Pilot Roll-out Implemented ACC network optimisation Phase II 2nd phase of ACC opportunities confirmed Continued new site roll-out Grow the e-Commerce porta
Slide 27: What does success mean for Healius Digital?
What does success mean for Healius Digital? 27 FY 2022 Results
Slide 28: We are well on our way in building Pathology solutions
We are well on our way in building Pathology solutions REFERRALS COLLECTIONS TESTS REPORTS PAYMENTS 4 2 Lab Collections Portal Portal 1 7 8 5A 5B 5C 5D 5E 5F 5G 5H Results Billing Electronic App System Referrals Histology Cytology Micro Haem Biochem Molecular Immuno Genetics 3 Courier 6 System Instr
Slide 29: We are leveraging common solutions in Imaging
We are leveraging common solutions in Imaging REFERRALS BOOKINGS TESTS REPORTS PAYMENTS C Radiology Portal Existing RIS A B F G D Results Billing Electronic Booking Picture App System Referrals Portal System Existing PACS E1 E2 E3 E4 E5 X RAY CT ULTRA MRI PET H Data Platforms I Insights Modernise Di
Slide 30: Sustainability priorities
Sustainability priorities 30 FY 2022 Results
Slide 31: A market leading network
A market leading network Australia-wide coverage 20 Total Sites 607 Total Sites 2,252 Total sites 20 214 Total Sites 564 38 5 2,095 1,998 ACCs Pathology 97 Laboratories 40 Total Sites 205 5 4 750 Total Sites 34 6 146 29 Hospitals ACT Imaging 67 Community Centres 36 Total Sites 50 Medical Centres 688
Slide 32: Healius
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