Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — H1 FY2016 Earnings Presentation
19 slides from Sonic Healthcare's earnings presentation, Feb 17, 2016
Slide 1: Financial and Operational Review
Financial and Operational Review For the half-year ended 31 December 2015 Colin Goldschmidt CEO, Sonic Healthcare 17 February 2016
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 ‣ Full-year FY 2016 ‣ On track to achieve full-year guidance ‣ Guidance equates to FY 2016 EBITDA growth >25% (A$870-900 million, assuming current FX rates) ‣ Ongoing currency exchange rate tailwind ‣ Half-year FY 2016 ‣ Revenue growth 21.8%, EBITDA growth 15.5% ‣ Accretive acquisitions in
Slide 4: Summary
Summary A$ M H1 FY 2016 H1 FY 2015 Growth Revenue 2,453 2,014 21.8% EBITDA (before expensing non-recurring costs) 409 350 16.7% Net profit (after expensing non-recurring costs) 188 174 8.0% Cash generated from operations 325 252 29.1% ‣ Revenue growth ‣ Strong organic growth ~7.5% in lab division (c
Slide 5: Dividends
Dividends A$ H1 FY 2016 H1 FY 2015 Growth Interim Dividend $0.30 $0.29 3.4% ‣ Interim dividend franked to 30% ‣ Record Date 7 March 2016 ‣ Payment Date 6 April 2016 ‣ Dividend Reinvestment Plan to operate for interim dividend ‣ Fine tuning of capital structure post-acquisitions in period ‣ 1.5% disc
Slide 6: FY 2016 Guidance Maintained
FY 2016 Guidance Maintained ‣ EBITDA ‣ A$815-840 million at constant currency rates (FY 2015 FX rates) ‣ At current FX rates, equates to reported EBITDA of A$870-900 million ‣ Excludes future acquisitions ‣ H2 EBITDA vs H1 EBITDA ‣ Traditional earnings weighting to H2 more accentuated this year (as
Slide 7: H1 FY 2016 Revenue Split
H1 FY 2016 Revenue Split SCS $193 New Zealand 8% $13 1% Imaging $209 8% Australia Belgium $609 $65 3% 25% Switzerland $179 7% Total H1 FY 2016 revenue A$2,451 million (excludes A$2 million interest income) UK & Ireland USA $203 8% $540 22% Germany $440 18% SCS = Sonic Clinical Services (IPN Medical
Slide 8: Expanding International Revenues
Expanding International Revenues H1 2015 H1 2016 Australia A$1,011 Australia 41% A$966 48% International International A$1,440 A$1,047 59% 52% Statutory revenue in A$ M, excluding interest income
Slide 9: Australian Pathology
Australian Pathology ‣ Revenue ‣ 5.2% growth, organic growth 4.0% ‣ Adelaide Pathology Partners acquisition 10 December 2015 ‣ Now cycled through Medicare fee cuts of 1 November 2014 Australia ‣ Sonic growth substantially stronger than Medicare market growth of 1.9% for period ‣ Earnings $609 25% ‣
Slide 10: USA
USA ‣ Revenue ‣ Organic revenue growth 1.9% (constant currency) ‣ 25.5% revenue growth in A$ (statutory) ‣ Growth variable between divisions: >5% growth at CPL (Texas, Sonic’s largest US lab), negative growth at restructured CBLPath (yet strong earnings growth) USA $540 ‣ Earnings 22% ‣ Double digit
Slide 11: Germany
Germany ‣ Revenue ‣ 5.4% growth, 4.4% organic (constant currency) ‣ 11.2% revenue growth in A$ (statutory) ‣ Market share gains in all segments of operation ‣ Operations Germany ‣ Range of efficiency and integration programs ongoing $440 ‣ Stable, high-quality business attracting talented pathologis
Slide 12: UK
UK ‣ Revenue ‣ 75% organic growth (constant currency) ‣ 104% revenue growth in A$ (statutory) ‣ Strong private sector growth ‣ Includes JV with UCLH and Royal Free (“Health Services Laboratories” – HSL) ‣ Operations $203 ‣ HSL operational since 1 April 2015 – successful integration, excellent servic
Slide 13: Switzerland
Switzerland ‣ Revenue ‣ 198% growth, 6.1% organic (constant currency) ‣ 252% revenue growth in A$ (statutory) ‣ Revenue growth includes Medisupport acquisition ‣ Strong growth in esoteric testing – genetics, molecular tests, histopathology $179 ‣ Sonic clear #1 player in Swiss laboratory market 7% ‣
Slide 14: Belgium
Belgium ‣ Revenue $65 ‣ 22% growth, 2.6% organic (constant currency) ‣ 29% revenue growth in A$ (statutory) 3% ‣ Includes KLD acquisition ‣ Strong growth in esoteric testing – molecular testing and histopathology ‣ KLD acquisition ‣ Closed 3 July 2015, performing strongly ‣ Range of integration proj
Slide 15: Sonic Imaging
Sonic Imaging ‣ Revenue ‣ 0.8% growth (organic) Imaging ‣ Unprecedented and unexpected fall in total market growth due to government and $209 media publicity ‣ Contract wins in two new Queensland private hospitals to drive future growth 8% ‣ Earnings ‣ Negative earnings growth for period ‣ Cost and
Slide 16: Sonic Clinical Services
Sonic Clinical Services ‣ Includes medical centres and occupational health SCS $193 ‣ 239 centres and ~2,100 GPs 8% ‣ Revenue and earnings ‣ 6.7% revenue growth, including acquisitions ‣ Earnings stable in period ‣ Medical Centre business (IPN) impacted by Government’s fee indexation freeze ‣ Occupa
Slide 17: Debt Metrics
Debt Metrics 31 Dec 2015 30 Jun 2015 Net interest-bearing debt A$ M 2,479 1,976 Gearing ratio % 40.7 37.3 Interest cover X 10.5 10.8 Debt cover X 3.0 2.7 ‣ Increase in debt due to FX changes (~A$90 million) and acquisitions ‣ Debt cover ratio higher than long-term average, expected to reduce in H2 ‣
Slide 18: Robust Growth Outlook
Robust Growth Outlook ‣ EBITDA growth of >25% forecast for full-year FY 2016 (refer guidance) ‣ Ongoing strong organic revenue growth in laboratory division ‣ Strong earnings growth in USA, Germany, UK, Switzerland, Belgium ‣ Earnings enhancement strategies in progress for Australian businesses ‣ In
Slide 19: Thank you
@ SONIC sy | HEALTHCARE Thank you a BE ene |