Slide 1: Morgan Stanley Conference Presentation
Morgan Stanley Conference Presentation Dr Ian Kadish CEO Anne Lockwood CFO 7 June 2018
Slide 2: A leading diagnostic imaging business across Australia and (shortly) New Zealand
A leading diagnostic imaging business across Australia and (shortly) New Zealand Confidential / Draft 1 1
Slide 3: FY18 Snapshot: A good year
FY18 Snapshot: A good year FY18 EBITDA is expected to increase by 13% to 16%, and NPAT to increase by around 20% (prior to transaction and takeover response costs) IDX Profitability($m) 179.7 As at 4 June 2018 160.0 167.8 149.9 138.7 Share price $2.85 Shares on issue 145 m 25.6 30.7 34.6 34.9 33.5 3
Slide 4: IDX has a proven track record of integrating businesses and delivering sustainable organic growth
IDX has a proven track record of integrating businesses and delivering sustainable organic growth Integral Diagnostics has grown from a single clinic to 53 clinics via mergers, acquisitions, hospital contracts, service expansion and greenfield developments* Successfully Opened the Darling acquired a
Slide 5: IDX will soon be operating in four key markets
IDX will soon be operating in four key markets Total IDX Geographic Market Victoria Queensland Western Australia New Zealand Ballarat, Geelong, Gold Coast, Warrnambool and South West Western Core markets Toowoomba and Auckland outer western areas Australia Mackay of Melbourne Sites (includes hospita
Slide 6: Attractive industry fundamentals
Attractive industry fundamentals Confidential / Draft 5 5
Slide 7: Return of Australian market growth to historic levels
Return of Australian market growth to historic levels Industry growth is supported by: - Aging population - Increased prevalence of chronic disease - Advancements in technology for early diagnosis and screening MBS indexation will be reintroduced for targeted DI services from July 2020 The FY19 Fede
Slide 8: New Zealand has attractive market fundamentals
New Zealand has attractive market fundamentals Same specialist college as Australia (RANZCR) with reciprocity Consistent strong market growth (CAGR ~7%) Annually indexed reimbursement More diversified earnings stream relative to Australia Government supportive of private radiology to expedite return
Slide 9: Delivering on our focused growth strategy
Delivering on our focused growth strategy Confidential / Draft 8 8
Slide 10: Delivering on the strategy
Delivering on the strategy Strategy 1 Grow existing business and contain costs 2 Strategic acquisitions Increase Develop Select Bolt- Drivers of Flex staff to capacity Centres of on Disciplined execution strategy demand utilisation Excellence Acquisitions Geographic Existing territory New territory
Slide 11: Acquisition of New Zealand's premier diagnostic imaging platform
Acquisition of New Zealand’s premier diagnostic imaging platform Confidential / Draft 10 10
Slide 12: A strategically compelling acquisition
A strategically compelling acquisition Transaction • Purchase of Specialist Radiology Group, Trinity MRI and Cavendish Radiology overview • Represents leading specialist radiology clinics in Auckland • Employs leading New Zealand specialists in musculoskeletal radiology and neuroradiology • Expected
Slide 13: Good Auckland based locations and equipment
Good Auckland based locations and equipment Clinic Services Modalities Doctors Comprehensive 1 MRI 9 (shared across • Prominent practice Greenlane locations in the Auckland clinic with MSK 1 CT SPECT Greenlane, Manukau specialists 2 Ultrasounds and Pukekohe) market 1 X-ray 1 Fluoro • Major capex has
Slide 14: Specialist radiologists who are recognised experts
Specialist radiologists who are recognised experts • Highly regarded team, including leading MSK and Neuro-Vascular radiologists • Radiologists all spend substantial amounts of time working in public hospitals, which helps build referrer relations • Practices are strategically located maximising int
Slide 15: Strong fit on all measures
Strong fit on all measures • Strategic and cultural fit with IDX’s doctor led operating model focussed on high end specialised radiology services • Leading MSK and neuro-interventional radiologists add value to the IDX group skillset • Demonstrated track record of achieving strong revenue growth at
Slide 16: Strategic bolt-on acquisition in Geelong complements IDX's existing network
Strategic bolt-on acquisition in Geelong complements IDX’s existing network Confidential / Draft 15 15
Slide 17: Acquisition of Geelong Medical Imaging (GMI)
Acquisition of Geelong Medical Imaging (GMI) • GMI acquisition adds two radiology clinics in Geelong region Specialist diagnostic services: X-Ray, ultrasound, CT, MRI and nuclear medicine Ongoing employment agreement with 3 year minimum term with the vendor radiologist who is dual-trained in rad
Slide 18: Focused growth strategy is delivering results
Focused growth strategy is delivering results Confidential / Draft 17 17
Slide 19: Positive outlook
Positive outlook On track to deliver FY18 expectations • Full year normalised FY18 NPAT growth of around 20% (before transaction costs and takeover response costs) • FY18 EBITDA in the range between $38m to $39m • FY18 Capex of $17m (growth: $7m; replacement: $10m) Looking forward to FY19 • Followin
Slide 20: Thank you. Questions?
Thank you. Questions? Confidential / Draft 19 19
Slide 21: 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 22: Contact us
Contact us Dr Ian Kadish, CEO P: +61 3 9321 4915 E: kadishi@integraldiagnostics.com.au 21