Slide 1: H1 FY2016 Results
H1 FY2016 Results John Livingston (CEO) Craig Bremner (CFO) 24 February 2016
Slide 2: Contents
CONTENTS SECTION SLIDE HIGHLIGHTS 2 ATTRACTIVE BUSINESS MODEL 6 1H16 FINANCIAL PERFORMANCE 10 GROWTH STRATEGY AND OUTLOOK 15 QUESTIONS 19 APPENDIX 20 1
Slide 3: 1H16 Financial Performance
1H16 FINANCIAL PERFORMANCE • Statutory earnings - Revenue up 16.6% to $82.1m - EBITDA up 70.5% to $11.0m - NPAT up 235.9% to $3.8m - NPATA up 256.7% to $4.0m • Pro forma1 revenue grew, albeit less than planned given short term industry softening, leading to reduction in pro forma earnings - Revenue
Slide 4: 1H16 Industry Thematics
IH16 INDUSTRY THEMATICS • Uncertainty created by Government announcements and related media coverage - Medicare Benefits Review and Mid-Year Economic and Fiscal Outlook • Resultant changes in referral patterns (experienced across industry) impacted patient examination volumes earlier than anticipate
Slide 5: 1H16 Snapshot
1H16 SNAPSHOT • Key strengths in hospital sites with focus on higher value modalities - Signed new long term contract for Bunbury Hospital, WA • IDX patient examination volumes in 1H16 growing 3.9% v industry growth of 2.3% (based on Medicare data for the states in which IDX operates) • Pro forma fi
Slide 6: 1H16 – A Busy Six Months
1H16 – A BUSY SIX MONTHS • Successfully listed on ASX on 21 Oct 15 • Completed the integration of South Coast Radiology • Signed a new long term contract extension with the West Australian Country Health Service relating to the provision of services at Bunbury hospital • Expanded services with insta
Slide 7: Attractive Business Model
integral ATTRACTIVE BUSINESS MODEL
Slide 8: IDX Business Model
IDX BUSINESS MODEL The combination of IDX's referrers, sites, modality offering and clinical staff provides the group with a strong market position, access to scale advantages and a business model that is difficult to replicate Business model adaptable to potential regulatory change Comprehensive se
Slide 9: Key Strengths in Hospital Sites
KEY STRENGTHS IN HOSPITAL SITES 1. Long history in respective markets 2. Regional core markets, with #1 position in each market South Coast Radiology (QLD) Established 1967 3. Hospital sites in all regions which 12 locations (2 hospital sites) underpin higher complexity work Global Diagnostics (
Slide 10: Model Ensures Radiologist Alignment
MODEL ENSURES RADIOLOGIST ALIGNMENT 53 Highly attractive place for Radiologists to work 52 • Clinical autonomy and excellence 50 • Diverse and interesting mix of work 48 • Large referral network • Sub-specialisation opportunities • Technology and systems FY2013 FY2014 FY2015 HY2016 • Training and de
Slide 11: 1H16 Financial Performance
1H16 FINANCIAL PERFORMANCE 10
Slide 12: Top Line Growth Even with Industry Softness
TOP LINE GROWTH EVEN WITH INDUSTRY SOFTNESS Pro forma $ millions, Dec 1HFY2016 1HFY2015 Change ($m) Change (%) Total revenue 82.1 79.2 3.0 3.8% Total expenses (65.1) (61.3) (3.8) 6.2% EBITDA 17.0 17.8 (0.8) (4.5%) Depreciation (3.9) (4.2) 0.3 (7.0%) EBITA 13.1 13.6 (0.5) (3.7%) Amortisation (0.3) (0
Slide 13: Strong Balance Sheet
STRONG BALANCE SHEET Conservative gearing Actual $ millions 31 Dec-2015 • Net debt 1.5x to pro forma EBITDA Cash and cash equivalents 13.7 Trade and other receivables 4.4 LTM Other current assets 2.9 Total current assets 21.0 • Intangible assets of $98.0m relate to Property, plant and equipment 44.6
Slide 14: Investing for Growth
INVESTING FOR GROWTH • Total CAPEX of $11.0m for 1H16 is tracking above FY16 Prospectus - Acceleration of planned capex given additional opportunities to drive growth • New equipment investment of $6.7m - Two new MRI units (one each at SJOG Geelong and Toowoomba) - New state of the art equipment to
Slide 15: High Free Cash Conversion
HIGH FREE CASH CONVERSION Pro forma FY2016 $ millions, June year end 1HFY2016 Prospectus Forecast EBITDA 17.0 37.3 Non-cash items in EBITDA 0.2 (0.1) Changes in working capital 0.5 2.3 Maintenance and replacement capex (5.9) (9.0) Free cash flow 11.9 30.5 Growth capital expenditure (5.1) (6.1) Net c
Slide 16: Growth Strategy & Outlook
integral GROWTH STRATEGY & OUTLOOK 15
Slide 17: IDX's Growth Strategy
IDX'S GROWTH STRATEGY Strategy 1 Grow existing business and expand capacity 2 Strategic acquisitions Strong competitive Build out specialist and regionally Drivers of strategy Catchment area growth Existing site capacity position focused Diagnostic Imaging leader Geographic focus Existing regions Ex
Slide 18: Delivering on Growth Strategy
DELIVERING ON GROWTH STRATEGY • Grow existing business and expand capacity - New sites service demand in growing regional centres at Toowoomba and Ocean Grove… improved range of services and increased patient examination volumes - Improved site utilisation with 3.9% growth in patient examination vol
Slide 19: Outlook for 2H FY2016
OUTLOOK FOR 2H FY2016 • Continued short term industry uncertainty created by Government announcements and media coverage – Medicare Benefits Review and Mid-Year Economic and Fiscal Outlook • Long term demand thematics remain - Contemporary evidence-based preventative health care for an increasingly
Slide 20: Questions
integral QUESTIONS 19
Slide 21: Appendix
integral APPENDIX
Slide 22: 1H16 Financial Result
1H16 FINANCIAL RESULT 1HFY2016 $ millions, Dec Statutory Pro forma Total revenue 82.1 82.1 EBITDA 11.0 17.0 EBITA 7.0 13.1 EBIT 6.7 12.8 NPAT 3.8 7.9 NPATA 4.0 8.2 Net Debt 50.9 50.9 EPS (cents) 2.83 5.95 21
Slide 23: Pro Forma Results Reconciliation
PRO FORMA RESULTS RECONCILIATION $ millions, Dec Note 1HFY2016 1HFY2015 Actual NPAT 3.8 (2.8) Impact of Acquisitions [1] - 2.1 Listed company expenses [2] (0.3) (0.7) Transaction costs expensed [3] 6.4 9.4 Change in financing structure and financing costs [4] 0.2 1.0 Income tax impact (2.1) (0.7) Pr
Slide 24: Statutory Results Overview
STATUTORY RESULTS OVERVIEW Statutory $ millions, Dec 1HFY2016 1HFY2015 Change ($m) Change (%) Total revenue 82.1 70.5 11.6 16.6 Total expenses (71.1) (64.1) (7.0) 11.2 EBITDA 11.0 6.4 4.6 70.5 Depreciation 3.9 3.7 0.2 6.3 EBITA 7.0 2.8 4.2 157.9 Amortisation 0.3 0.3 0.0 0.3 EBIT 6.7 2.4 4.3 179.0 Ne
Slide 25: 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 26: H1 FY2016 Results
H1 FY2016 Results John Livingston (CEO) Craig Bremner (CFO) 24 February 2016