Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — FY2019 Earnings Presentation
20 slides from Sonic Healthcare's earnings presentation, Aug 20, 2019
Slide 1: Financial and Operational Review
Financial and Operational Review For the year ended 30 June 2019 Colin Goldschmidt CEO, Sonic Healthcare 20 August 2019
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 FY 2019 result in line with guidance (constant currency) Underlying EBITDA growth 6.7% Statutory result strong (actual currency) Revenue growth 11.6% to A$6.2 billion EBITDA growth 13.3% to A$1.1 billion Net profit growth 15.6% to A$550 million Final dividend up 4.1% to A$0.5
Slide 4: FY 2019 Summary
FY 2019 Summary A$M Actual Currency FY 2019 FY 2018 Growth Revenue and earnings Group organic revenue growth ~4% (constant currency) Revenue 6,184 5,541 12% Revenue reduced by ~A$33 million due to merger of US Midwest business Non-recurring gain (GLP Systems) (50) - into 49% owned ProMedica JV
Slide 5: FY 2020 Guidance
FY 2020 Guidance Guidance excludes impact of new lease accounting standard AASB 16 Refer to Appendix 4E for estimated financial impact of AASB 16 Guidance EBITDA growth 6-8% on underlying FY 2019 EBITDA of A$1,052 million* (constant currency) Interest expense to increase by ~3% (constant c
Slide 6: Dividends
Dividends A$ FY 2019 FY 2018 Growth Interim Dividend $0.33 $0.32 3.1% Final Dividend $0.51 $0.49 4.1% Total Dividends $0.84 $0.81 3.7% Final dividend franked to 30% (interim dividend franked to 20%) Record Date 11 September 2019 Payment Date 25 September 2019 Dividend Reinvestment Plan suspe
Slide 7: Full-year Dividend History
Full-year Dividend History $0.90 $0.84 $0.80 $0.70 $0.60 $0.50 A$ $0.40 $0.30 $0.20 $0.10 $0.00 Financial Year Sonic Healthcare | Full-year Results FY 2019 7
Slide 8: Annual Revenue History
Annual Revenue History 7.0 6.7* 6.2 6.0 5.0 * FY 2020 revenue, including full 4.0 year of Aurora acquisition, based on market consensus forecast, A$B including FX rate assumptions. Illustrative only, not Sonic guidance. 3.0 2.0 1.0 0.0 Financial Year Sonic Healthcare | Full-year Results FY 2019 8
Slide 9: FY 2019 Revenue Split
FY 2019 Revenue Split New Zealand SCS & Other $34 $438 <1% Imaging 7% $500 Belgium 8% Australia $146 $1,470 2% 24% Switzerland $431 7% UK & Ireland $435 7% USA $1,441 Germany 24% $1,232 20% SCS & Other = Sonic Clinical Services (IPN Medical • Statutory revenue in A$M Centres, Sonic HealthPlus, other
Slide 10: Australian Pathology
Australian Pathology Financials 5% organic revenue growth, market share gains Earnings growth and margin accretion ongoing Significant savings from procurement Operations Australia Number of collection centres reduced by ~60 (net) in FY 2019 A$1,470M Successful relocation to new state-
Slide 11: USA
USA Financials Revenue growth 18% (constant currency), including Aurora acquisition Organic revenue growth 5% (constant currency) Revenue and earnings impacted by PAMA Medicare fee cuts, weighted to H2 Aurora acquisition Completed January 2019, integration proceeding to plan Major expa
Slide 12: Germany
Germany Financials Revenue growth 3.5% (constant currency) Revenue and margins impacted by April 2018 regulatory changes Organic revenue growth and margins trending stronger in recent months Operations Pathology Trier (acquired July 2018) successfully integrated, with synergy activity on
Slide 13: UK and Ireland
UK and Ireland Revenue 9% organic revenue growth (constant currency), including Barnet / Chase Farm hospital contract (commenced October 2017) Continuing strong growth in private market (non-National Health Service) Operations Ongoing operational optimisation, including integration of Barn
Slide 14: Switzerland
Switzerland Financials Organic revenue growth 4% Strong earnings and margin growth Operations Zug Cantonal Hospital contract commenced 1 January 2019, operating to plan Switzerland Innovative IT and eHealth solutions supporting high-level services A$431M 7% Leading genetics laboratorie
Slide 15: Belgium
Belgium Financials Flat revenue growth (constant currency) impacted by targeted fee cut in period Operations Belgium A$146M Stable operations 2% Cost and efficiency initiatives in train Focus on speciality testing and in-house genetic testing Regulatory environment stable Sonic Healthc
Slide 16: Sonic Imaging
Sonic Imaging Financials 6% organic revenue growth 7% earnings growth, with margin accretion Operations Imaging A$500M Received three full MRI licences during the recent Government allocation 8% Projects continue to realise further national synergies Expansion via greenfield and new mo
Slide 17: 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 233 centres and ~2,400 GPs Operations SCS & Other A$438M Ongoing successful doctor recruitment and retention – 85 ne
Slide 18: Capital Management
Capital Management 30 June 30 June 2019 2018 Net interest-bearing debt A$M 2,299 2,483 Equity A$M 5,492 4,283 Gearing ratio % 29.5 36.7 Interest cover X 10.5 10.1 Debt cover X 2.1 2.5 A$928 million of equity raised mid-FY 2020 to fund Aurora acquisition and future growth Current total weighted p
Slide 19: Outlook
Outlook Company well positioned for ongoing strong growth Rich pipeline of acquisition, joint venture and contract opportunities Strong balance sheet with headroom for expansion Geographical diversification provides growth opportunities and risk mitigation Stable, experienced and dynamic g
Slide 20: Thank you
@ SONIC sy | HEALTHCARE Thank you sao. | ———— | AlN