Slide 1: FY22 Results Investor Presentation
T +61 3 5339 0704 E info@idxgroup.com.au Suite 9.02, Level 9, 45 William Street Melbourne Vic 3000 www.integraldiagnostics.com.au FY22 Results Investor Presentation 29 August 2022, Melbourne Integral Diagnostics Limited (ASX:IDX) attaches its FY22 Results Investor Presentation. For further detai
Slide 2: FY22 Results
FY22 RESULTS Dr. Ian Kadish (MD & CEO) Craig White (CFO) 29 August 2022 “Good Medicine is Good Business”
Slide 3: IDX Vision & Values
IDX VISION & VALUES we patients first PATIENTS ARE AT THE HEART OF EVERYTHING WE DO medical leadership IMPROVING OUTCOMES WITH EVIDENCE BASED CARE everyone counts WE WORK SAFELY, INCLUSIVELY AND RESPECT EACH OTHER create value DELIVER SUSTAINABLE VALUE TO ALL STAKEHOLDERS embrace change STRIVE FOR E
Slide 4: Delivering on Our Values – FY22
DELIVERING ON OUR VALUES – FY22 Patients Medical Everyone Create Embrace First Leadership Counts Value Change • Served 800,000 • 245 reporting • 1,868 employees • Operating NPAT • Managed patients radiologists declined by 43.1% to workflows, • Developed a $21.7m in a COVID- personnel and • Performed
Slide 5: FY22 Financial Highlights
FY22 FINANCIAL HIGHLIGHTS 2.8% growth in operating revenue despite COVID-19 impacting near term performance 53.5% 43.1% 20.0% 46.2% 2.8% 26.1% Net debt / decline in decline in decline in decline in increase decline EBITDA statutory operating operating operating in in (pre- NPAT NPAT EBITDA EPS opera
Slide 6: COVID-19 Impact
COVID-19 IMPACT The impacts of COVID-19, and to a lesser extent influenza in the second half of FY22, included the following: • Reduced patient activity due to: • Restrictions on elective surgery, together with backlogs even where these restrictions have eased. • Patients’ reluctance or inability to
Slide 7: DI Industry COVID-19 Impact: Australia
DI INDUSTRY COVID-19 IMPACT: AUSTRALIA Industry growth rates, on a 12 month rolling basis, came back strongly in CY21, however declined significantly in the second half of FY22 given the onset of the Omicron variant of COVID-19 together with influenza While published industry data is not available f
Slide 8: Shareholder Returns
SHAREHOLDER RETURNS Fully franked final dividend of 3.0 cps declared, resulting in a total FY22 fully franked dividend of 7.0 cps, representing a 84.9% payout ratio Operating EBITDA - million 90 80 70 60 84.0 50 75.7 74.8 40 53.0 30 38.1 20 FY 18 FY 19 FY 20 FY 21 FY 22 IDX Dividends 12.5 Dividend c
Slide 9: FY22 Financial Performance
FY22 FINANCIAL PERFORMANCE
Slide 10: Results for FY22
RESULTS FOR FY22 $ million FY22 FY21 Change ($) Change (%) Operating revenue(1) 358.7 348.8 9.9 2.8% Operating EBITDA(2) 74.8 93.5 (18.7) (20.0%) EBITDA operating margin(2) 20.8% 26.8% (6.0%) Operating EBITA(2) 41.0 62.8 (21.8) (34.7%) Operating NPAT(2) 21.7 38.1 (16.4) (43.1%) Operating Diluted EPS
Slide 11: Revenue
REVENUE Operating revenue up 2.8% to $358.7m Modest underlying growth in Australia, despite ongoing COVID-19 impacts, driven by new sites, investment in new equipment and additional contribution from acquisitions. IDX organic operating revenue growth in Australia of 1.6% compares favourably to the M
Slide 12: Operating Expenditure
OPERATING EXPENDITURE Operating costs increased by 5.8% ($28.6m) as a % of revenue, largely driven by the adverse impact of COVID-19 on patient revenues and increasing employee costs related to COVID-19. The Company is committed to maintaining and supporting our excellent team of radiologists and re
Slide 13: Capital Management
CAPITAL MANAGEMENT Strong balance sheet • FY22 net debt of $101.5m (FY21: $138.6m) $ million 30 Jun 22 30 Jun 21 30 Jun 20 Cash and cash equivalents 123.2 62.2 58.0 • 1.6x EBITDA prior to non operating transactions as Trade and other receivables 19.4 14.3 10.4 at 30 June 2022 (FY21 1.7x) (pre-AASB16
Slide 14: Cashflow and Cash Conversion
CASHFLOW AND CASH CONVERSION Solid free cash flow $ million FY22 FY21 • Normalised free cash flow conversion of 78.3% (FY21 89.1%), before replacement capex Operating EBITDA 74.8 93.5 Non-cash items in EBITDA (1.8) 0.6 • The application of AASB 16 results in the same free cash flows (after adjusting
Slide 15: Capital Expenditure
CAPITAL EXPENDITURE Capex investment in line with IDX’s strategy $ million(1) FY22 FY21 FY20 Replacement 9.4 16.8 9.4 Growth 21.9 6.3 16.7 Total 31.3 23.1 26.1 Depreciation 20.6 19.1 14.8 FY22 Replacement capex of $9.4m Replacement capex reflects capital sensitivity requirements and site refurbishme
Slide 16: Regulatory Update
REGULATORY UPDATE
Slide 17: Regulatory Environment Activity
REGULATORY ENVIRONMENT ACTIVITY Australia: MRI Licences • On 29 March 2022 the Federal government announced the de-regulation of Medicare funded MRI services in regional and rural areas, defined as Modified Monash Model 2-7. As at the date of this presentation no further licences or plans for deregu
Slide 18: Strategy Update
STRATEGY UPDATE
Slide 19: Management's Strategy – Good Medicine is Still Good Business
MANAGEMENT’S STRATEGY – GOOD MEDICINE IS STILL GOOD BUSINESS 1 Grow existing business and margin 2 Strategic acquisitions Strategy Accelerate use Drive organic of teleradiology, growth - including Drive our Nurture and digital and AI to Focus on integrating recent Drivers of selective price improve
Slide 20: IDX Focus in FY23
IDX FOCUS IN FY23 Drive organic growth, including selective price increases, cost efficiencies and select brownfields and greenfields - Price to better reflect value and partially offset cost inflation
Slide 21: IDX Focus in FY23
IDX FOCUS IN FY23 Accelerate the use of teleradiology, digital and AI technologies • Continue to identify, assess and implement AI software that expedites diagnosis, improves efficiencies, and saves lives • Leverage our teleradiology offering, IDXt, and our JV with the UK’s Medica Group, to provide
Slide 22: Questions?
QUESTIONS?
Slide 23: Appendices
APPENDICES
Slide 24: IDX Today – Group Overview – June 2022
IDX TODAY – GROUP OVERVIEW – JUNE 2022 Western Victoria Queensland New Zealand Australia 5 5 Total IDX Geographic Queensland Western Victoria Victoria & NSW Queensland Queensland New Zealand New Zealand Market & NSW Australia Ballarat, Albury, Geelong, Wodonga, Sunshine Coast, Gold Coast, Brisbane,
Slide 25: Reconciliation of Operating to Statutory EBITDA
RECONCILIATION OF OPERATING TO STATUTORY EBITDA $ million FY22 FY21 Change ($) Change (%) Operating NPAT 21.7 38.1 (16.4) (43.0%) Non operating transactions net of tax Transaction and integration costs (5.5) (1.4) Share based expenses 0.6 (2.1) Amortisation of customer contracts (2.2) (3.3) Statutor
Slide 26: 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
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