Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — FY2014 Earnings Presentation
21 slides from Sonic Healthcare's earnings presentation, Aug 19, 2014
Slide 1: Financial and Operational Review
Sonic Healthcare Financial and Operational Review For the year ended 30 June 2014 Colin Goldschmidt CEO, Sonic Healthcare 19 August 2014
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 ‘14 earnings guidance achieved ‣ FY ‘14 total dividend up by 8.1% ‣ FY ‘15 guidance – EBITDA growth of approximately 5%
Slide 4: Summary
Summary Financial and Operational Strength Growth Statutory Constant Currency Revenue 12.3% 4.8% EBITDA 13.3% 5.4% Net profit 14.9% 6.5% Earnings per share 13.3% 5.0% ‣ Financial strength ‣ Double-digit revenue and earnings growth ‣ EBITDA margin accretion of 17 bps ‣ Margin accretion in each of Pat
Slide 5: Financial Summary
Financial Summary Statutory Constant Currency FY ‘14 FY ‘13 Growth FY ‘14 FY ‘13 Growth Revenue (A$M) 3,913 3,484 12.3% 3,652 3,484 4.8% EBITDA (A$M) 733 647 13.3% 681 647 5.4% Interest expense (A$M) 57 63 (8.2)% 50 63 (19.3)% Net profit (A$M) 385 335 14.9% 357 335 6.5% Earnings per share (cents) 95
Slide 6: Dividends
Dividends A$ FY ‘14 FY ‘13 Growth Interim Dividend $0.27 $0.25 8.0% Final Dividend $0.40 $0.37 8.1% Total Dividends $0.67 $0.62 8.1% ‣ Final dividend franked to 55% (previously 45%) ‣ Record Date 9 September 2014 ‣ Payment Date 23 September 2014
Slide 7: FY '15 Guidance
FY ‘15 Guidance ‣ EBITDA growth of approximately 5% ‣ Guidance based on constant currency rates (FY ’14 FX rates) ‣ Based on FY ‘14 EBITDA of A$733 million ‣ Excludes future acquisitions ‣ Interest expense ‣ Expected to decrease by ~10% (constant currency) ‣ Current base rates assumed to prevail ‣ T
Slide 8: Revenue Split
Revenue Split FY ‘14 IPN $349 New Zealand 9% $41 1% Imaging $415 Australia Switzerland 11% $1,131 $100 2% 29% Belgium $107 2% UK & Ireland $193 5% USA Germany $830 $744 21% 19% Statutory revenue in A$ million Blue wedges = Laboratory medicine / pathology Green wedges = Imaging and IPN (medical centr
Slide 9: Revenue Split
Revenue Split FY ‘14 Australia 49% International 51%
Slide 10: Australian Pathology
Australian Pathology ‣ Revenue ‣ 6% growth ‣ Volumes weaker in recent months, possibly due to government co-pay publicity Australia ‣ Strength in specialist and hospital markets A$1,131M 29% ‣ Earnings ‣ Negative impact of escalating collection centre leases ‣ All other costs well controlled ‣ Inves
Slide 11: USA
USA ‣ Revenue ‣ Volume growth 2.2% ‣ December, January and February volumes impacted by extreme weather ‣ Flat revenue growth, consistent with major competitors’ organic growth ‣ Recent revenue initiatives and Obamacare enhancing volume growth ‣ Earnings ‣ Cost-out initiative largely complete, tail
Slide 12: Sonic Healthcare USA Organic Volume Growth
Sonic Healthcare USA Organic Volume Growth 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% Extreme weather -2.0%
Slide 13: Germany
Germany ‣ Revenue ‣ 12% constant currency (includes Labco acquisition) ‣ 5% organic growth (H2 FY ‘14 very strong) ‣ Ongoing market share gains in all segments (GP, specialist, hospital, esoteric/genetics) ‣ Labco Germany integration on track ‣ Physical merger completed recently ‣ Wide range of syne
Slide 14: UK
UK ‣ Strong revenue and earnings growth in FY ‘14 ‣ Revenue growth 12% constant currency ‣ JV with University College London Hospital/Royal Free ‣ Contracts signed 30 July 2014, commencement late 2014 ‣ 51% Sonic ownership ‣ Incremental revenue ~£50 million in first full year ‣ Earnings accretive, m
Slide 15: Halo Building
Halo Building New central London hub lab facility
Slide 16: New Hub Lab
1 Mabledon Place King’s Cross Biomedical Campus
Slide 17: Belgium and Switzerland
Belgium Switzerland ‣ Belgium ‣ Revenues impacted by 1 November 2013 statutory fee cut (~7%) Switzerland A$100M ‣ Partly offset by small indexation fee increase (~1%) 1 January 2014 2% ‣ Stable operating performance ‣ Switzerland Belgium ‣ Outstanding performance for the year A$107M 3% ‣ Revenue gro
Slide 18: Sonic Imaging and IPN
Sonic Imaging IPN ‣ Sonic Imaging ‣ Australian Imaging: revenue growth 5% IPN A$349M ‣ Total imaging revenue impacted by sale of NZ businesses 9% Imaging A$415M ‣ Imaging division performing solidly 11% ‣ IPN – Medical Centres and Occupational Health ‣ Revenue growth 5% ‣ Medicare fee indexation inc
Slide 19: Investment Grade Credit Metrics
Investment Grade Credit Metrics 30 June ‘14 30 Jun ‘13 Net interest-bearing debt A$M 1,739 1,739 Gearing ratio % 35.9 37.3 Interest cover X 10.7 8.6 Debt cover X 2.4 2.4 ‣ Available headroom at 30 June 2014 ~A$500 million (before final dividend payment) ‣ Recently priced €110 million of notes in US
Slide 20: Growth Opportunities
Growth Opportunities ‣ Sonic’s Medical Leadership culture provides competitive advantage in major growth areas ‣ Organic growth ‣ Market growth and market share gains ‣ Market growth long-term trend ~5% ‣ Market share gains driven by culture, high quality service and innovation ‣ Acquisitions ‣ Trac
Slide 21: Thank you
Q SONIC sy HEALTHCARE Thank you