Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — H1 FY2012 Earnings Presentation
16 slides from Sonic Healthcare's earnings presentation, Feb 21, 2012
Slide 1: Half Year Results
Half Year Results For the period ended 31 December, 2011 Colin Goldschmidt CEO, Sonic Healthcare 21 February 2012
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: Highlights
Highlights Financial highlights Growth Constant Currency Statutory Revenue 12% 9% EBITDA 14% 11% Net Profit 8% 6% Operational highlights Solid operating performance throughout company Organic revenue and market share growth in major markets Margin expansion particularly strong in Germany a
Slide 4: Financial Summary
Financial Summary H1 ‘12 GROWTH H1 ‘12 CURRENCY H1 ‘12 v H1 ‘11 TRANSLATION A$M Constant Currency Constant Currency Statutory EFFECTS Revenue 1,692 12% 1,642 (50) EBITDA (pre‐acquisition costs) 304 14% 297 (7) Interest Expense 42 46% 39 3 NPAT 146 8% 143 (3) EPS – 37.2 cents (constant currency), u
Slide 5: FY 2012 Guidance
FY 2012 Guidance Full‐year guidance: EBITDA growth 10‐15% H1 ‘12 EBITDA growth 14% On track (January YTD) to achieve full‐year guidance Interest and tax guidance Interest expense growth of ~25% for full‐year Expect interest expense to decline in FY ’13 Effective tax rate FY ‘12 expecte
Slide 6: Second Half Earnings
Second Half Earnings H2 ‘12 EBITDA ~53‐55% of full year Traditional southern hemisphere skew to H2 Increasing northern hemisphere impact (summer holidays Jul/Aug) Exacerbated by working day differences in FY ’12 Strong January 2012 result First global procurement contracts signed – savin
Slide 7: Revenue Split
Revenue Split H1 ‘12 IPN $142 9% New Zealand $36 2% Radiology Australia $191 12% $493 Switzerland 30% $38 2% UK & Ireland $46 3% Belgium $47 3% Germany USA $269 $378 16% 23% Statutory revenue in A$ million
Slide 8: Australian Pathology
Australian Pathology Revenue growth 8% 1.4% of growth attributable to IPN medical centre/skin clinic acquisitions Medicare market outlays growth for same period 3.5% Margin expansion >150 bps Off low base in prior period Efficiency gains mitigating higher collection costs Regulatory en
Slide 9: Germany
Germany Organic revenue growth 6% Margin expansion >150 bps FY ‘11 120 bps* FY ‘10 20 bps* Synergies and operational enhancements ongoing Three mergers completed Successful procurement tenders Rationalisation of logistics networks and vehicle fleet Tight cost control Small synerg
Slide 10: Europe
Europe Belgium, Switzerland, UK & Ireland Businesses tracking well Belgium Organic growth in esoteric testing and Netherlands volume Previous acquisitions fully integrated ~3% fee increase from Jan 2012 Switzerland Particularly strong revenue and margin growth Zurich lab modernisatio
Slide 11: USA
USA Organic revenue growth 2% Macro growth environment muted Major competitors reported flat organic growth Expect return to normal growth in near future Margin expansion 30 bps Excludes acquisitions impacting period Excludes one‐off A$2.4 million bad debt (hospital bankruptcy) Hampe
Slide 12: Sonic Imaging Medical Centres (IPN)
Sonic Imaging Medical Centres (IPN) Sonic Imaging Revenue growth 4% Margin expansion 30 bps (follows 100 bps for FY ‘11) Doctor leadership and engagement at all levels Ongoing cost control and process review programs IPN Revenue growth 32% Margin expansion >100 bps (follows 190 bps f
Slide 13: Sonic Debt Summary
Sonic Debt Summary Investment Grade Credit Metrics 31 Dec ‘11 30 Jun ‘11 Net interest‐bearing debt A$M 1,658 1,536 Gearing ratio % 39.7 37.9 Interest cover X 6.7 7.4 Debt cover X 2.8 2.8 Available headroom ~A$560 million (after interim dividend) Gearing ratio = Net debt / Net debt + equity (bank
Slide 14: Interim Dividend
Interim Dividend H1 ‘12 H1 ‘11 Interim Dividend A$0.24 A$0.24 Dividend franked to 35% Record Date 7 March 2012 Payment Date 22 March 2012 Dividend Reinvestment Plan remains suspended
Slide 15: Outlook
Outlook Sonic strategy – building a strong and successful company Culture, quality and customer service at company’s core ROIC and EPS accretion integral to strategy Synergy capture and margin expansion from existing infrastructure ROIC accretive acquisitions only Leveraging market leade
Slide 16: Thank You
SONIC HEALTHCARE Thank You aS SS ae * . — 1 IS)