Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — H1 FY2021 Earnings Presentation

19 slides from Sonic Healthcare's earnings presentation, Feb 18, 2021

  1. Slide 1: CEO Presentation – Half-Year Results to 31 December 2020

    18 February 2021 The Manager – Listings Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Via electronic lodgement Dear Sir / Madam CEO PRESENTATION – HALF-YEAR RESULTS TO 31 DECEMBER 2020 At 8.30am AEDT today, Dr Colin Goldschmidt, Chief Executive Officer, will

  2. Slide 2: Financial and Operational Review

    Financial and Operational Review Half-year ended 31 December 2020 Colin Goldschmidt CEO, Sonic Healthcare 18 February 2021

  3. Slide 3: 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

  4. Slide 4: Headlines – H1 FY 2021

    Headlines – H1 FY 2021  H1 FY 2021 results  Revenue A$4,432 million (33% growth)  EBITDA A$1,307 million (89% growth)  Net profit A$678 million (166% growth)  COVID-19  Sonic’s COVID testing capability continues to play a crucial role in pandemic control  >18 million COVID PCR tests performed

  5. Slide 5: Financial Summary – H1 FY 2021

    Financial Summary – H1 FY 2021 A$M Actual Currency H1 FY 2021 H1 FY 2020 Growth Revenue 4,432 3,341 33% EBITDA 1,307 690 89% Net profit 678 254 166% Cash generated from operations 810 534 52%  Revenue and earnings  Result demonstrates strong operating leverage in laboratory division  COVID testin

  6. Slide 6: Strong H2 result expected based on revenue growth trend

    FY 2021  Strong H2 result expected based on revenue growth trend in January and February (to date)  FY 2021 earnings guidance not provided due to COVID-19 related unpredictability  Outlook dependent on potential fluctuations in base business and COVID-19 testing revenues  Global base business in

  7. Slide 7: Interim Dividend

    Interim Dividend A$ FY 2021 FY 2020 Growth Interim Dividend $0.36 $0.34 6%  Progressive dividend strategy maintained  Franked to 30%  Record Date 10 March 2021  Payment Date 24 March 2021  Dividend Reinvestment Plan suspended Sonic Healthcare Interim Results H1 FY 2021 6 18 February 2021

  8. Slide 8: H1 FY 2021 Revenue Split

    H1 FY 2021 Revenue Split New Zealand SCS & A$15 Other Sonic Belgium Imaging A$202 A$103 A$304 5% 2% 7% USA Switzerland A$1,187 A$301 27% 7% UK & Ireland A$334 7% Australia Germany A$973 A$1,013 SCS & Other = Sonic Clinical Services (IPN 22% 23% Medical Centres, Sonic HealthPlus, other clinical servi

  9. Slide 9: USA

    USA  H1 FY 2021 revenue  39% organic growth, constant currency  Base business revenue down 8% in H1 – second wave impact significantly less than first  Government grants (US$26 million in total) repaid in February 2021  Proposed changes to Medicare anatomical pathology fees from January 2021 re

  10. Slide 10: Germany

    Germany  H1 FY 2021 revenue  58% organic growth, constant currency  Base business revenue minimally impacted despite lockdowns  No government subsidies received in FY 2020 or H1 FY 2021  Operations  Sonic the largest provider of COVID-19 PCR tests in Germany, in 30 laboratories nationwide  Es

  11. Slide 11: Australian Pathology

    Australian Pathology  H1 FY 2021 revenue  26% organic revenue growth  Base business revenue growth 5%  No government subsidies received in FY 2020 or H1 FY 2021  Operations  Sonic is a leading provider of COVID PCR testing in Australia  Maintaining PCR surge capacity in every state to assist

  12. Slide 12: H1 FY 2021 UK revenue

    UK  H1 FY 2021 UK revenue  43% organic growth, constant currency  Private market base business largely recovered  NHS (public) base business slightly down in H1 – second wave impact significantly less than first  Operations  New on-site COVID PCR surge lab, opened December 2020, now at full ca

  13. Slide 13: Switzerland

    Switzerland  H1 FY 2021 revenue  26% organic growth, constant currency  Base business revenue growth 6%  Operations  COVID testing ramped up during H1 Switzerland A$301M  Additional PCR capacity commissioned with two more COVID testing facilities opened 7% Sonic Healthcare Interim Results H1 F

  14. Slide 14: Belgium

    Belgium  H1 FY 2021 revenue  39% organic growth, constant currency  Base business revenue down 4% in H1 – second wave impact significantly less than first  Operations  COVID PCR testing volumes substantially increased during H1, consolidated at Antwerp Belgium A$103M central laboratory 2%  Ong

  15. Slide 15: Sonic Imaging

    Sonic Imaging  H1 FY 2021 revenue and earnings  14% revenue growth, including market share gains  19% EBITDA growth  No government subsidies received in FY 2020 or H1 FY 2021 Sonic Imaging  Operations A$304M 7%  Benefitting from workflow and other efficiency projects  Investments in greenfiel

  16. Slide 16: Sonic Clinical Services

    Sonic Clinical Services  H1 FY 2021 revenue and earnings  Revenue down 4%, impacted by pandemic  Profit maintained at prior year level  No government subsidies received in FY 2020 or H1 FY 2021 SCS & Other  Operations A$202M 5%  GP service provision maintained throughout pandemic  Ongoing uti

  17. Slide 17: Capital Management

    Capital Management 31 December 30 June 2020 2020 Net interest-bearing debt A$M 1,648 2,022 Equity A$M 5,924 5,664  Gearing ratio = Net debt / Net debt + equity (covenant limit <55%)  Interest cover = EBITA / Net interest expense (covenant limit >3.25) Gearing ratio % 21.6 26.1  Debt cover = Net d

  18. Slide 18: Outlook

    Outlook  Sonic provides essential healthcare services, base business increasingly resilient to impacts of pandemic  Expect demand for COVID-19 PCR testing to continue into foreseeable future, volumes unpredictable  Potential growing demand for COVID-19 serology testing (immunity status)  Increas

  19. Slide 19: Thank you

    Sy SONIC SY HEALTHCARE Thank you

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