Slide 1: 1HFY23 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 1HFY23 Results Investor Presentation 17 February 2023, Melbourne Integral Diagnostics Limited (ASX: IDX) attaches its 1HFY23 Results Investor Presentation. Authorised
Slide 2: 1H FY23 Results
1H FY23 RESULTS Dr. Ian Kadish (MD & CEO) Craig White (CFO) 17 February 2023 “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 – 1H FY23
DELIVERING ON OUR VALUES – 1H FY23 Patients Medical Everyone Create Embrace First Leadership Counts Value Change • Served 590,000 • 249 reporting • 1,984 employees • Operating NPAT • Implemented new patients radiologists declined by 36.4% to clinical and corporate • Conducted “temp- $7.8m in an syst
Slide 5: 1H FY23 Financial Highlights
1H FY23 FINANCIAL HIGHLIGHTS 19.2% growth in operating revenue reflects slow gradual recovery in patient volumes from the COVID-19 pandemic and the acquisition of the X-Ray Group, Peloton Radiology and Horizon Radiology [X.XX%] 58.2% [X.XX%] 36.4% [0.8%] 2.4% 46.2% 48.0% 2.8% 19.2% 26.1% 56.0% Net d
Slide 6: 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 CY22 given the onset of the Omicron variant of COVID-19, together with influenza, together with the lingering impact of these events • In Austral
Slide 7: Shareholder Returns
SHAREHOLDER RETURNS Fully franked interim dividend of 2.5 cps declared, representing a 74.4% payout ratio of Operating NPAT Operating EBITDA 100.0 80.0 41.5 AUD $m 60.0 36.0 46.4 40.0 26.3 52.0 20.0 38.8 39.8 26.7 29.3 - FY19 FY20 FY21 FY22 FY23 1H 2H Operating EBITDA for the FY19 and FY20 financial
Slide 8: 1H FY23 Financial Performance
1H FY23 FINANCIAL PERFORMANCE
Slide 9: Results for 1H FY23
RESULTS FOR 1H FY23 AUD $m 1H FY23 1H FY22 Change ($) Change (%) Operating revenue(1) 215.1 180.5 34.6 19.2% Operating EBITDA(2)(3) 39.8 38.8 0.9 2.4% Operating EBITDA margin 18.5% 21.5% Operating EBITA(2)(3) 19.6 22.7 (3.1) (13.6%) Operating NPAT(2) 7.8 12.3 (4.5) (36.4%) Operating Diluted EPS (cps
Slide 10: Revenue
REVENUE Operating revenue up 19.2% to $215.1m, reflecting both organic growth and the X-Ray Group, Peloton Radiology and Horizon Radiology acquisitions • Revenue growth of $34.6m, including the X-Ray Group ($5.1m for four months from July to October 2022 following completion of the acquisition in No
Slide 11: Operating Expenditure
OPERATING EXPENDITURE Operating costs increased by 3.1% ($33.3m including acquisitions) as a percentage of revenue, largely reflecting higher labour costs, driven by inflation and labour market supply constraints on below normal revenues, which are slowly gradually recovering from the COVID-19 pande
Slide 12: Capital Management
CAPITAL MANAGEMENT Solid balance sheet • 1H FY23 net debt of $194.2m (1) (1H FY22: $179.5m), AUD $m 31 Dec 2022 30 Jun 2022 31 Dec 2021 being 3.1x(2) EBITDA prior to non operating Cash and cash equivalents 35.8 123.2 55.6 transactions at 31 December 2022 (1H FY22: 2.6x) on Trade and other receivable
Slide 13: Cashflow and Cash Conversion
CASHFLOW AND CASH CONVERSION Strong free cash flow AUD $m 1H FY23 1H FY22 • Free cash flow conversion of 96.8% (1H FY22 Operating EBITDA 39.8 38.8 63.6%), after replacement capex Non-cash items in EBITDA (0.2) 0.2 Changes in working capital 16.9 (2.8) • Growth capital expenditure was $5.1m in 1H Rep
Slide 14: Capital Expenditure
CAPITAL EXPENDITURE Capex investment in line with IDX’s strategy AUD $m 1H FY23 2H FY22 1H FY22 Replacement 8.5 4.2 6.7 Growth 5.1 10.4 3.6 Total(1)(2) 13.6 14.6 10.3 Depreciation 12.1 9.8 9.5 (1) Represents cash + accruals (2) Excludes property, plant and equipment acquired as part of the X-Ray Gro
Slide 15: Regulatory Update
REGULATORY UPDATE
Slide 16: Regulatory Environment Activity
REGULATORY ENVIRONMENT ACTIVITY Australia: MRI Licences • On 1 November 2022 the Federal government de-regulated 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 deregulation of MRI licences have been
Slide 17: Strategy Update
STRATEGY UPDATE
Slide 18: Management’s Strategy – Good Medicine Is Still Good Business
MANAGEMENT’S STRATEGY – GOOD MEDICINE IS STILL GOOD BUSINESS Strategic Strategy 1 Grow existing business and margin 2 acquisitions Accelerate Nurture and Integrate recent Drivers of use of Drive organic Drive our ESG develop acquisitions. No further strategy teleradiology, growth strategy culture an
Slide 19: IDX Focus in FY23
IDX FOCUS IN FY23 ➢ Drive organic growth through improved utilisation of existing assets, selective price increases, cost efficiencies and select brownfield and greenfield sites • Strong focus on continuing to build and enhance relationships with referrers • Price to better reflect value, while rema
Slide 20: Questions?
QUESTIONS?
Slide 21: Appendices
APPENDICES
Slide 22: IDX Today – Group Overview
IDX TODAY – GROUP OVERVIEW – DECEMBER 2023 Note: Reflects current data as at 31 December 2022 and adjusted for the acquisitions of Peloton Radiology and Horizon Radiology. 1. Comprehensive sites include a range of radiology equipment including MRIs and CTs and are located with or near major speciali
Slide 23: Reconciliation of Operating to Statutory EBITDA & NPAT
RECONCILIATION OF OPERATING TO STATUTORY EBITDA & NPAT AUD $m 1H FY23 1H FY22 Change ($) Change (%) Operating NPAT 7.8 12.3 (4.5) (36.4%) Non operating transactions net of tax Transaction and integration benefits/(costs) 10.4 (0.7) Share based expenses (1.0) (0.7) Share of net profit of joint ventur
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
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