Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — H1 FY2015 Earnings Presentation
19 slides from Sonic Healthcare's earnings presentation, Feb 17, 2015
Slide 1: Half Year Results
For personal use only Sonic Healthcare Half Year Results For the period ended 31 December 2014 Colin Goldschmidt CEO, Sonic Healthcare 17 February 2015
Slide 2: Forward-looking statements
For personal use only 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 pla
Slide 3: Headlines
Headlines For personal use only ‣ Half-year result in line with guidance (AGM November 2014) ‣ Full-year guidance reaffirmed after 7 months’ trading ‣ Volume growth strengthening in Australia and USA ‣ Currency translation tailwind expected in H2 ’15 ‣ Interest expense continuing downward trend ‣ In
Slide 4: Financial Summary
Financial Summary For personal use only STATUTORY CONSTANT CURRENCY H1 FY ‘15 H1 FY ‘14 Growth H1 FY ‘15 H1 FY ‘14 Growth Revenue (A$M) 2,014 1,899 6% 1,996 1,899 5% EBITDA (adjusted)* (A$M) 350 347 1% 348 347 0% EBITDA (A$M) 346 344 0% 344 344 0% Net profit (A$M) 174 177 (2)% 173 177 (2)% Earnings
Slide 5: Dividends
Dividends For personal use only H1 FY ‘15 H1 FY ‘14 Growth Interim Dividend $0.29 $0.27 7.4% ‣ Dividend franked to 55% ‣ Record Date 11 March 2015 ‣ Payment Date 25 March 2015
Slide 6: FY '15 Guidance
FY ‘15 Guidance For personal use only ‣ Guidance maintained: “EBITDA growth of 2-4%” ‣ On track to achieve full-year guidance after 7 months’ trading ‣ Guidance based on constant currency rates (FY ‘14 FX rates) ‣ Based on FY ‘14 EBITDA of A$733 million ‣ Excludes future acquisitions and one-off cos
Slide 7: Revenue Split H1 FY '15
Revenue Split H1 FY ‘15 For personal use only IPN $180 9% New Zealand $18 1% Imaging Australia $207 (Pathology) Belgium 10% $579 $50 2% 29% Switzerland $51 3% UK / Ireland $102 5% USA Germany $430 $396 21% 20% Statutory revenue in A$ million IPN - Medical centres and occupational health services in
Slide 8: Australian Pathology Volume Growth
Australian Pathology Volume Growth For personal use only 10% 9.0% 9% 8% 7% 6.3% 6% 5.7% 4.9% 4.7% 5% 4% 3.1% 3% 2.2% 2.2% 2.0% 2% 1.7% 1.5% 1% 0.4% 0.2% 0% H2 FY ‘15 Volume Growth ‣ Recent strong growth expected to continue in H2 FY ‘15 ‣ Low growth in prior corresponding period (H2 FY ‘14) ‣ Volume
Slide 9: Australian Pathology H1 FY '15 financials
Australian Pathology For personal use only ‣ H1 FY ’15 financials ‣ Revenue growth 2.8%, impacted by low volumes in Q1 ‣ Market growth (national Medicare benefits paid) 1.7% H1 FY ‘15 ‣ Q2 and January volume growth strong ‣ Medicare fee cut from 1 November 2014 ‣ Negative earnings growth in period ‣
Slide 10: USA
USA For personal use only ‣ Revenue ‣ Organic revenue growth 1% constant currency (5% statutory) ‣ Revenue growth variable across divisions ‣ Volume growth strengthening in recent months ‣ Negative earnings growth in period, largely CBLPath-related ‣ CBLPath restructure (anatomic pathology) ‣ Suffer
Slide 11: Germany
Germany For personal use only ‣ Revenue ‣ 21% constant currency growth (including acquisitions) ‣ 6% organic growth (FY ‘14 = 5%) ‣ Market share gains continuing, driven by quality and service innovation ‣ Wide range of initiatives contributing to growth ‣ Labco Germany integration ‣ Acquired Decemb
Slide 12: UK
UK For personal use only ‣ Revenue growth 9% constant currency (16% statutory) ‣ Strong growth in both Harley Street and hospital markets ‣ JV with University College London Hospital/Royal Free ‣ Set to commence Q4 FY ‘15 ‣ 51% Sonic ownership ‣ 10 year contracts to provide pathology services to JV
Slide 13: Switzerland Belgium
Switzerland Belgium For personal use only ‣ Switzerland ‣ 6% organic revenue growth constant currency (8% statutory) ‣ Market share growth with strong position in Zurich region ‣ Stable regulatory outlook ‣ Belgium ‣ Revenue down by 3%, due to abnormal (7%) fee cut November 2013 ‣ Stable regulatory
Slide 14: Imaging IPN
Imaging IPN For personal use only ‣ Imaging ‣ Organic revenue growth 3% (adjusted for sale of NZ business) ‣ Earnings growth through effective cost control ‣ IPN – Medical Centres and Occupational Health ‣ Revenue growth 5% ‣ Solid earnings growth, evidencing tight cost control ‣ Successful doctor r
Slide 15: Alberta
For personal use only Alberta ‣ Area: 82% of NSW ‣ ~1,200 Km from north to south ‣ 4 million people ‣ Capital: Edmonton (pop. 1.2 million)
Slide 16: Canada Alberta Contract
Canada Alberta Contract For personal use only ‣ Sonic selected as exclusive preferred provider ‣ Laboratory services in the Edmonton area ‣ Option for Alberta Health Services to extend contract into Northern and Central Alberta ‣ Rigorous and comprehensive process with 4 parties submitting proposals
Slide 17: Debt Metrics
Debt Metrics For personal use only 31 Dec ‘14 30 Jun ‘14 Net interest-bearing debt A$M 1,968 1,739 Gearing ratio % 38.0 35.9 Interest cover X 11.9 10.7 Debt cover X 2.5 2.4 ‣ Increased net debt due mainly to weaker AUD ‣ Available headroom ~$465 million (before interim dividend payment) ‣ Interest e
Slide 18: Outlook and Growth Drivers
Outlook and Growth Drivers For personal use only ‣ Outlook ‣ Strong volume growth returning to key markets ‣ Resolution of Australian regulatory issues expected ‣ Cost initiatives in US and Australia to augment H2 earnings ‣ Significant momentum in European businesses ‣ Growth drivers ‣ Industry gro
Slide 19: Thank you
For personal use only Thank you