Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — FY2013 Earnings Presentation
16 slides from Sonic Healthcare's earnings presentation, Aug 20, 2013
Slide 1: Financial and Operational Review, Year ended 30 June 2013
Sonic Healthcare Financial and Operational Review Year ended 30 June 2013 Colin Goldschmidt CEO, Sonic Healthcare 20 August 2013
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
Slide 3: Headlines
Headlines Growth Constant Currency Statutory Revenue 4.7% 4.1% EBITDA 4.9%* 3.6% Net profit 7.1% 6.0% Earnings per share 5.5% 4.5% * 4.5% EBITDA growth after expensing $2.5 million implementation costs of US cost-out initiative ‣ Record revenue and earnings results ‣ EBITDA margins ‣ Pathology margi
Slide 4: Financial Summary
Financial Summary FY ‘13 GROWTH FY ‘13 CURRENCY FY ‘13 v FY ‘12 TRANSLATION A$M Constant Currency Constant Currency Statutory EFFECTS Revenue 3,503 4.7% 3,484 (19) EBITDA 652 4.5% 647 (5) Interest Expense 63 (15.5)% 63 0 Net profit 338 7.1% 335 (3) EBITDA growth: 4.9% excluding $2.5 million implem
Slide 5: FY '14 Guidance
FY ‘14 Guidance ‣ EBITDA growth of approximately 5% ‣ Guidance based on constant currency rates (FY ‘13 FX rates) ‣ Equates to approximately 12% growth at current exchange rates ‣ Based on FY ’13 EBITDA of A$647 million ‣ Includes estimated impacts of possible FY ’14 fee adjustments in Australia, Ge
Slide 6: Revenue Split
Revenue Split FY ‘13 IPN $332 10% New Zealand $41 1% Imaging Australia $404 $1,067 12% 31% Switzerland $77 2% Belgium $98 3% UK & Ireland $148 4% Germany USA $565 $749 16% 21% Statutory revenue in A$ million IPN - Medical centres and occupational health services in Australia
Slide 7: Australian Pathology
Australian Pathology ‣ Revenue growth 6.3% ‣ Organic growth 5% ‣ Medicare fee reduction of ~1.1% from 1 January 2013 Australia ‣ $10 million p.a. cost-out initiative A$1,067 ‣ Over and above normal cost efficiency measures 31% ‣ Partial impact in FY ‘14 ‣ Mainly labour savings ‣ Synergy capture, cos
Slide 8: USA
USA ‣ Revenue ‣ Revenue impacted by fee cuts commencing in H2 FY ‘13 ‣ Full-year revenue declined 2.5% ‣ Improving organic volume growth in recent months (April through July 2013) ‣ New revenue initiatives in early phases of implementation ‣ Obamacare expected to enhance market growth from 2014 (not
Slide 9: Germany
Germany ‣ Revenue growth 7% ‣ Organic revenue growth 4% (impacted by fee “quotas”) ‣ Market share gains through quality and service ‣ Strong growth in esoteric testing ‣ Ongoing synergy capture and cost control ‣ Acquisition opportunities ‣ Previously announced acquisitions included in FY ‘13 revenu
Slide 10: UK, Belgium, Switzerland
UK, Belgium, Switzerland ‣ UK ‣ UK revenue growth 36% due to contract wins (BMI, North-West London Trust and Ramsay) ‣ Core business performing strongly, increased earnings, margins diluted by contracts Switzerland A$77 2% ‣ Major National Health Service outsource opportunities in progress Belgium A
Slide 11: Sonic Imaging and IPN
• Sonic Imaging • IPN ‣ Sonic Imaging ‣ Revenue growth (organic) 5% ‣ EBITDA growth 9.3%, margin up by 80 bps IPN A$332 10% ‣ Strong performance ongoing Imaging A$404 12% ‣ IPN – Medical Centres and Occupational Health ‣ Revenue growth medical centres 7% ‣ Revenue growth occupational health 20%, lar
Slide 12: Sonic Debt Summary
Sonic Debt Summary Investment Grade Credit Metrics 30 June ‘13 30 Jun ‘12 Net interest-bearing debt A$M 1,739 1,571 Gearing ratio % 37.3 37.6 Interest cover X 8.6 7.0 Debt cover X 2.4 2.5 ‣ Available headroom >$500 million ‣ Increased net debt due to weaker AUD ‣ Gearing ratio = Net debt / Net debt
Slide 13: Dividends
Dividends FY ‘13 FY ‘12 Growth Interim Dividend $0.25 $0.24 4% Final Dividend $0.37 $0.35 6% TOTAL Dividend $0.62 $0.59 5% ‣ Dividend franked to 45% ‣ Record Date 4 September 2013 ‣ Payment Date 24 September 2013 ‣ Dividend Reinvestment Plan suspended
Slide 14: Overview of Sonic Healthcare
Overview of Sonic Healthcare ‣ World’s third-largest medical diagnostics company ‣ Market leading positions in 8 countries on 3 continents ‣ 26,000 employees ‣ Attractive and growing global healthcare markets ‣ Growing and ageing populations (ageing baby boomers) ‣ Preventative medicine / screening
Slide 15: Summary and Outlook
Summary and Outlook ‣ Ongoing earnings growth despite current pricing pressures in Sonic’s major markets ‣ Pricing pressure in major markets driving further consolidation to Sonic’s advantage ‣ Acquisition and contract growth opportunities in key markets ‣ Strong organic revenue growth in Australia
Slide 16: Thank you
Q SONIC sy HEALTHCARE Thank you