Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — H1 FY2014 Earnings Presentation
16 slides from Sonic Healthcare's earnings presentation, Feb 18, 2014
Slide 1: Sonic Healthcare Half Year Results
For personal use only Sonic Healthcare Half Year Results For the period ended 31 December 2013 Colin Goldschmidt CEO, Sonic Healthcare 18 February 2014
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: Summary: Operational and Financial Strength
Summary Operational and Financial Strength For personal use only Growth Statutory Constant Currency Revenue 11.9% 4.4% EBITDA 13.4% 5.6% Net profit 17.7% 9.6% Earnings per share 16.1% 7.9% ‣ Strong financial result ‣ Double-digit revenue and earnings growth ‣ EBITDA margin accretion of 25 bps ‣ On t
Slide 4: Financial Summary
Financial Summary For personal use only STATUTORY CONSTANT CURRENCY H1 FY ‘14 H1 FY ‘13 Growth H1 FY ‘14 H1 FY ‘13 Growth Revenue (A$M) 1,899 1,697 11.9% 1,772 1,697 4.4% EBITDA (A$M) 344 304 13.4% 321 304 5.6% Interest expense (A$M) 31 33 (4.4)% 27 33 (17.1)% Net profit (A$M) 177 151 17.7% 165 151
Slide 5: Dividends
Dividends For personal use only H1 FY ‘14 H1 FY ‘13 Growth Interim Dividend $0.27 $0.25 8% ‣ Dividend franked to 45% ‣ Record Date 6 March 2014 ‣ Payment Date 25 March 2014
Slide 6: FY '14 Guidance
FY ‘14 Guidance For personal use only ‣ Full-year guidance (Aug 2013): “EBITDA growth of approximately 5%” ‣ On track to achieve full-year guidance ‣ Labco acquisition expected to add ~0.5% additional EBITDA growth to FY ‘14 guidance ‣ Guidance based on constant currency rates (FY ’13 FX rates) ‣ Ba
Slide 7: Revenue Split H1 FY '14
Revenue Split H1 FY ‘14 For personal use only IPN $177 New Zealand 9% $22 1% Imaging $209 Australia 11% (Pathology) Switzerland $563 $47 2% 30% Belgium $52 3% UK & Ireland $88 5% Germany USA $329 $411 17% 22% Statutory revenue in A$ million IPN - Medical centres and occupational health services in A
Slide 8: Australian Pathology
Australian Pathology For personal use only ‣ Revenue growth ‣ 8% statutory growth ‣ 7% organic growth ‣ Achieved despite ~1.1% fee cut from 1 January, 2013 ‣ Strong brands and professional positioning Australia (Pathology) ‣ Earnings A$563 30% ‣ $10 million p.a. cost-out initiative completed by end
Slide 9: USA
USA For personal use only ‣ Revenue growth ‣ 12% statutory growth ‣ Flat organic growth (constant currency) ‣ Volume growth 1.4% per working day (1.9% through November) ‣ December and January volumes impacted by extreme weather ‣ New revenue initiatives in train ‣ Significant contract win in Las Veg
Slide 10: Germany
Germany For personal use only ‣ Revenue growth ‣ 24% statutory growth (net of fee quotas) ‣ 4% constant currency (net of fee quotas) ‣ 2% organic growth (net of fee quotas and acquisition) ‣ Market share gains through innovation and quality ‣ Recent hospital contract wins ‣ Proprietary e-health prod
Slide 11: Germany: Fee Quotas
Germany: Fee Quotas For personal use only ‣ National funding structure for statutory insurance (EBM) since October 2012 ‣ EBM fees affect <50% of Sonic Germany revenues ‣ Fee quota = percentage applied to EBM fee payments to curb growth in outlays ‣ Quota headwind in H1 FY ’14 → negative ~3% vs pcp
Slide 12: UK, Belgium, Switzerland
UK Belgium Switzerland For personal use only ‣ UK ‣ Strong revenue and earnings growth ‣ Revenue growth: 23% statutory, 10% constant currency (organic) ‣ Business performing strongly, augmented by flow-through of hospital contract earnings ‣ UCLH/Royal Free joint venture contract close to signing Sw
Slide 13: Sonic Imaging and IPN
Sonic IPN Imaging For personal use only ‣ Sonic Imaging ‣ Revenue and earnings impacted by sale of NZ business in prior year ‣ Australian Imaging performing well, organic revenue growth 5% IPN A$177 9% ‣ New partnership with Epworth Hospital Group in Victoria Imaging A$209 11% ‣ IPN – Medical Centre
Slide 14: Debt – Investment Grade Metrics
Debt – Investment Grade Metrics For personal use only 31 Dec ‘13 30 Jun ‘13 Net interest-bearing debt A$M 1,928 1,739 Gearing ratio % 38.5 37.3 Interest cover X 9.4 8.6 Debt cover X 2.4 2.4 ‣ Increased net debt due to Labco acquisition and weaker AUD ‣ Available headroom ~$500 million (before interi
Slide 15: Overview and Outlook
Overview and Outlook For personal use only ‣ Business secure and growing ‣ Favourable industry growth drivers ‣ Organic growth driven by brand strength, augmented by revenue initiatives ‣ Continued focus on cost-outs, synergy capture and margin expansion ‣ Targeting synergistic, accretive acquisitio
Slide 16: Thank you
For personal use only Thank you