HEALIUS LIMITED — AGM Information 2018

Nov 21, 2018

2018 ANNUAL GENERAL MEETING

22 NOVEMBER 2018

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ROBERT HUBBARD
CHAIRMAN
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2018 ANNUAL GENERAL MEETING

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BOARD OF DIRECTORS
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Robert Hubbard Non-executive Chairman

Dr Errol Katz Non-executive Director

Sally Evans Non-executive Director

Gordon Davis Non-executive Director

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Dr Malcolm Parmenter MD & CEO

Charles Tilley Company Secretary

Arlene Tansey Non-executive Director

Dr Paul Jones Non-executive Director

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FY 2018 HIGHLIGHTS
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Group	Underlying	Underlying	Reported
$m	FY 2018	FY 2017	FY 2018 FY 2017
Revenue EBIT NPAT	1,740.3 160.1 87.5	1,658.6 174.6 92.1	1,740.3 1,658.6 64.6 (469.7) 4.1 (516.9)
As at			30 June 2018 30 June 2017
Free cash flow1			146.6 141.5
Dividend cps 100% franked(60% UNPAT)			10.6 10.6

• » Revenue growth of 4.9%

• » Underlying NPAT of $92.3 million (before subsequent adjustment)

• » with drop in referral activity May and June preventing us reaching higher end of guidance » improved EBIT contributions from Pathology, Imaging, Corporate

• » Dorevitch arbitration caused $4.8m subsequent adjustment to Underlying NPAT

• » Free cash flow (before growth capex) up 3.6%

• » Final fully franked dividend of 5.5cps, total dividends 10.6cps

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DIVISIONAL FY18 HIGHLIGHTS
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FY 2018	Pathology	Medical	Imaging	Corporate	Group2
$m		Centres1
Revenue	1,090.6	319.6	368.4	-	1,740.3
EBIT	114.1	31.6	33.8	(19.4)	160.1

• Pathology Medical Centres » 5% revenue growth » 75% of GPs transitioned » EBIT growth before onto flexible capital-light contracts

• » EBIT growth before subsequent events

• » Record 159 GPs recruited

• » Continued success with recruited

• Approved Collection Centre rents growing at » Strong dental a lower rate than performance revenue » 4[th] IVF clinic opened » H&C finished at breakeven

Corporate

• Imaging » Strong EBIT performance up nearly 17%

  • » Enhanced Finance, Property and HR services

• » Reflects turnaround » Developing a strong, strategy central IT platform

• » Successful Brisbane Private Imaging acquisition

• 1 Medical centres included PRY Medical Centres and Health & Co

• 2 $38.3m of inter-company revenue/expenses eliminated at the Group level

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UNDERLYING PROFIT = CORE TRADING
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FY 2018 $m	Reported Impairment	Restructuring & strategic initiatives	Non-recurring items	Underlying
EBIT	64.6 49.5	40.9	5.1	160.1
Finance costs PBT Income Tax NPAT	(35.1) 29.5 (25.4) 4.1			(35.1) 125.0 (37.5) 87.5
FY 2017 $m	Reported Impairment	Restructuring & strategic initiatives	Non-recurring items	Underlying
EBIT Finance costs PBT Income Tax NPAT	(469.7) 587.0 (43.1) (512.8) (4.1) (516.9)	39.2	18.1	174.6 (43.1) 131.5 (39.4) 92.1

» Strategic initiatives include:

• » Leapfrog

• » Pathology IT platform

• » Imaging iCAR platform

• » Corporate functions

• » Further non-underlying items in FY 2019 expected for above strategic projects

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ROBERT HUBBARD
CHAIRMAN
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ROBERT FERGUSON SALLY EVANS
RETIRED NEW NED
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ROBERT HUBBARD
CHAIRMAN
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DR MALCOLM PARMENTER
MANAGING DIRECTOR AND CEO
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10 2018 ANNUAL GENERAL MEETING

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EXECUTIVE TEAM
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Malcolm Ashcroft Chief Financial Officer

Wesley Lawrence Chief Executive Pathology

Tim Haggett Chief Executive Medical Centres

Maxine Jaquet Scott Beattie Chief Executive Group Executive Health & Co Commercial Solutions

Yvette Cachia Group Executive People and Legal

Ryan Fahy Chief Information Officer

Janet Payne Group Executive Corporate Affairs

Dean Lewsam Chief Executive Imaging

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A YEAR IN REVIEW
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PURPOSE, CHANGING TO CAPITAL MISSION & MEET NEW RAISE HEALTHCARE VALUES LANDSCAPE

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PATHOLOGY MEDICAL IMAGING CENTRES DAY NAME & TRADING HOSPITALS BRAND UPDATE

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PATHOLOGY: CONSISTENT GROWTH
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• » Optimise portfolio of ACCs and laboratories

• » Re-platforming technology in LIS and SWA

• Deliver significant clinical, operational and financial benefits

• Support future growth

• Cost savings from automation, standardisation and efficiency

• – ~$20 million p.a. benefits once embedded

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PEOPLE PROCESS
Optimisation in
Attract the best
pre-analytical process
healthcare professionals
Improve referrer experience Technology upgrade
via SWA
Strong focus on staff
engagement Improved consumer
experience
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PROPERTY
ACC network optimisation
Speciality service
expansion
Laboratory uplifts
ACC enhancement in
Medical Centres
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MEDICAL CENTRES: LEAPFROG TO
DELIVER TRANSFORMATION
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• » A unique portfolio of large-scale clinics of remarkable size, location, accessibility and range of services

• » Aim to deliver care when, where and how consumers want it

• » Project Leapfrog to deliver a comprehensive renewal of the operating model

• » $140m cost over 3 years

52 Medical Centres modernised and extended[1]

97 Incremental consulting 40 Pathology relocations/ rooms expansions 42 Incremental dental surgeries 35 roomsProcedure 49 Imaging 11 Minor surgery refurbishments theatres

• » Targeting an average of $1m EBIT across all 73 centres

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PEOPLE PROCESS PROPERTY
Attract the best Increase operational Optimise space
healthcare efficiency utilisation
professionals Introduce new services
Improve the patient
Become workplace
of choice experience Uplift facilities
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Equivalent to 4 new large-scale medical centres without any incremental rent overhead

• 1 64 centres receiving an uplift of which 52 will be reconfigured with new GP consulting, dentist surgeries, ACCs and other services

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IMAGING: COMMUNITY SITES AND ICAR
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Northern Beaches
Hospital, Sydney
Siemens MRI imaging
equipment
Northern Beaches
Hospital, Sydney
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• » Revitalisation of community sites with focus on consumer value proposition, rebrand and marketing

• » Investment in iCAR : radiologist workflow, voice recognition and enhanced imaging

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PEOPLE PROCESS PROPERTY
Staff engagement Operational efficiency Uplift to community Northern Beaches
& medical centre sites Hospital, Sydney
Brand enhancement Improved referral
delivery channels Development of
Improved radiologist high-end sites
experience Patient experience
improvements Optimise hospitals
Holy Spirit Northside
Private Hospital, Brisbane
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MONTSERRAT
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Separations – day vs. overnight hospitals

Montserrat Locations

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6.6
7
5.4
6
4.2 4.4
5 3.9
3.4
4
3
2007 2012 2017
Same-day separations Overnight separations
(millions)
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Source: AIHW

Complementary business for Primary

• » Strategically aligned providing synergies especially in haematology and oncology

• » With 5 day hospitals at PRY, Montserrat to provide a platform for growth and improved performance

• » Opportunity to integrate with our IVF business

• » Opportunity for significant growth in what is a fragmented market place.

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Queensland
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Brisbane
Western Australia
Perth
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NSW
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Sydney
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A YEAR IN REVIEW
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PURPOSE, MISSION & VALUES

CHANGING TO CAPITAL

MEET NEW RAISE HEALTHCARE LANDSCAPE

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PATHOLOGY MEDICAL IMAGING CENTRES DAY NAME & TRADING HOSPITALS BRAND UPDATE

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