Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — H1 FY2020 Earnings Presentation

18 slides from Sonic Healthcare's earnings presentation, Feb 19, 2020

  1. Slide 1: Financial and Operational Review

    Financial and Operational Review Half-year ended 31 December 2019

  2. Slide 2: Forward-looking statements

    Forward-looking statements This presentation may include forward-looking statements about our financial results, guidance and business prospects that may involve risks and uncertainties, many of which are outside the control of Sonic Healthcare. Readers are cautioned not to place undue reliance on f

  3. Slide 3: Headlines

    Headlines  Guidance  On track to achieve full-year FY 2020 guidance after 7 months of trading  H1 FY 2020 results (excluding lease accounting standard AASB 16)  Revenue growth 15% actual currency, 12% constant currency  Organic revenue growth ~5% constant currency  Underlying EBITDA growth: 14

  4. Slide 4: H1 FY 2020 Summary

    H1 FY 2020 Summary H1 FY H1 FY H1 FY 2020 A$M Actual Currency Growth 2020 2019 AASB 16 Revenue 3,344 2,901 15% 3,341 EBITDA (underlying) 548 480 14% 703 EBITDA 535 471 14% 690 Net profit 256 223 15% 254 Cash generated from operations 379 369 3% 534 EPS (cents) 53.7 51.9 3.5% 53.3  Lease accounting

  5. Slide 5: FY 2020 Guidance Maintained

    FY 2020 Guidance Maintained  Guidance  EBITDA growth 6-8% on underlying FY 2019 EBITDA of A$1,052 million (constant currency)  Tax rate ~25%, interest to decrease by ~5% (constant currency), capital expenditure lower in FY 2020  Excludes future acquisitions and impact of new lease accounting sta

  6. Slide 6: Dividends

    Dividends A$ FY 2020 FY 2019 Growth Interim Dividend 0.34 0.33 3.0%  Interim dividend franked to 30%  Record Date: 11 March 2020  Payment Date: 25 March 2020  Dividend Reinvestment Plan remains suspended Sonic Healthcare | Results H1 FY 2020 6

  7. Slide 7: H1 FY 2020 Revenue Split

    H1 FY 2020 Revenue Split New Zealand SCS & Other $17 $212 1% Imaging 6% $266 Belgium 8% $74 2% USA $896 27% Switzerland $232 7% UK & Ireland $240 7% Australia Germany $771 $632 23% 19% SCS & Other = Sonic Clinical Services (IPN Medical Centres, Sonic HealthPlus, other clinical service entities) and

  8. Slide 8: USA

    USA  Revenue  45% revenue growth, 37% constant currency – includes Aurora acquisition  Organic revenue growth 2% (constant currency)  Growth impacted by PAMA Medicare fee cuts (1.3% of revenue)  Aurora acquisition  Business has performed to expectation since acquisition  Cost and revenue syne

  9. Slide 9: Australian Pathology

    Australian Pathology  Revenue  Strong organic growth of 7%  Earnings  Earnings growth and margin accretion  Collection centre costs stabilised  Operations  Market leader with efficient and innovative practices  Dedicated management team established for Sonic Pathology Australia  National ro

  10. Slide 10: Germany

    Germany  Revenue  5% revenue growth, 3% organic (constant currency)  Growth impacted by statutory insurance (EBM) fee quota changes  Organic volume growth strengthening  Operations  Wide range of synergy activities underway, including laboratory mergers  Trier anatomical pathology acquisition

  11. Slide 11: UK and Ireland

    UK and Ireland  Revenue  16% revenue growth, 13% organic (constant currency)  Strong growth in both private and NHS (National Health Service) market segments  Operations  Successful commencement (December 2019) of NHS contract for HPV testing for Greater London - £15 million revenue per annum,

  12. Slide 12: Switzerland

    Switzerland  Revenue  13% revenue growth, 6% organic (constant currency)  Operations  Additional hospital contract wins following Zug Cantonal Hospital  Zurich laboratory upgrade, with efficiency programs initiated Switzerland A232M 7%  Regulatory environment stable Sonic Healthcare | Results

  13. Slide 13: Belgium

    Belgium  Revenue  4% revenue growth, 2% organic (constant currency)  Operations  National laboratory information system (LIS) standardisation largely completed  Expansion of complex testing, including genetics Belgium A$74M  Operational integration ongoing, with two mergers completed 2%  Regu

  14. Slide 14: Sonic Imaging

    Sonic Imaging  Revenue and earnings  8% revenue growth  10% earnings growth with margin accretion  Operations Imaging  Commenced servicing public patients at Mater Hospital Brisbane from November A$266M 8% 2019 under long-term agreement  Continuing improvement from investments in greenfield si

  15. Slide 15: Sonic Clinical Services (SCS)

    Sonic Clinical Services (SCS)  SCS includes medical centres (IPN) and occupational health (Sonic HealthPlus)  Australia’s largest primary care and occupational health provider  229 centres and ~2,450 GPs SCS & Other  Revenue A$212M  Revenue growth 3% 6%  Market conditions improving  Operation

  16. Slide 16: Capital Management

    Capital Management 31 December 2019 30 June 2019 Net interest-bearing debt A$M 2,350 2,299 Equity A$M 5,506 5,492 Gearing ratio % 29.9 29.5 Interest cover X 11.2 10.5 Debt cover X 2.1 2.1  Investment grade balance sheet metrics  Current available headroom of ~A$1 billion, providing flexibility for

  17. Slide 17: Outlook

    Outlook  Company in strong, stable position, with embedded culture of Medical Leadership, respected brands and quality services  Favourable industry dynamics, with stable, ongoing, non-cyclical organic growth  Organic growth expected to be augmented by acquisitions, JVs and contracts  Growth opp

  18. Slide 18: Thank you

    Sy SONIC EY WEALTHCARE Thank you

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