Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — FY2020 Earnings Presentation

19 slides from Sonic Healthcare's earnings presentation, Aug 20, 2020

  1. Slide 1: Financial and Operational Review

    Financial and Operational Review For the Year Ended 30 June 2020 Colin Goldschmidt CEO, Sonic Healthcare 20 August 2020

  2. 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

  3. Slide 3: Sonic Healthcare and COVID-19

    Sonic Healthcare and COVID-19  Contribution  Sonic’s core business is the provision of essential diagnostic and clinical healthcare services  Sonic playing a central role in pandemic testing, enabling treatment, contact tracing and quarantining  Sonic’s Medical Leaders supporting national initia

  4. Slide 4: Headlines – FY 2020

    Headlines – FY 2020  FY 2020 results (excluding lease accounting standard AASB 16)  Revenue A$6,860 million (11% growth)  Underlying EBITDA A$1,109 million (24 June trading update ~A$1,075 million)  Underlying net profit A$552 million (7% growth)  Pre-pandemic (8.5 months) performance in line w

  5. Slide 5: Financial Summary – FY 2020

    Financial Summary – FY 2020 FY 2020 A$M Actual Currency FY 2020 FY 2019 Growth AASB 16 Revenue 6,860 6,184 11% 6,832 EBITDA (underlying) 1,109 1,052 5% NA EBITDA 1,117 1,075 4% 1,412 Net profit (underlying) 552 518 7% NA Net profit 558 550 1% 528 Cash generated from operations 1,067 847 26% 1,360 

  6. Slide 6: FY 2021 earnings guidance not provided due to COVID-19 related unpredictability

    FY 2021  FY 2021 earnings guidance not provided due to COVID-19 related unpredictability  Revenue growth in July and August 2020 substantially higher than historical rates  Due to uncertain environment, current revenue growth rates may not be sustained  Strong COVID-19 testing volumes currently

  7. Slide 7: Dividends

    Dividends A$ FY 2020 FY 2019 Growth Interim Dividend $0.34 $0.33 3.0% Final Dividend $0.51 $0.51 0.0% Total Dividends $0.85 $0.84 1.2%  Final dividend maintained at A$0.51, supported by strong balance sheet, earnings and cashflows  Franked to 30% (interim dividend franked to 30%)  Record Date 8 S

  8. Slide 8: FY 2020 Revenue Split

    FY 2020 Revenue Split SCS & NZ Other Sonic A$418 A$32 Imaging 6% Belgium A$520 A$148 8% 2% USA A$1,861 UK & Ireland 27% A$466 7% Switzerland A$492 7% Australia Germany A$1,542 SCS & Other = Sonic Clinical Services (IPN A$1,354 23% Medical Centres, Sonic HealthPlus, other clinical 20% service entitie

  9. Slide 9: USA

    USA  FY 2020 revenue  29% revenue growth  21% constant currency revenue growth, including extra 7 months of Aurora acquisition  3% organic revenue growth, constant currency  Government grants to maintain essential services in pandemic (~US$20 million)  COVID-19 response  ~3 million COVID-19 P

  10. Slide 10: Australian Pathology

    Australian Pathology  FY 2020 revenue  5% organic revenue growth  No government subsidies received  COVID-19 response  Testing performed in 8 Sonic laboratories, capacity continuing to expand  >1 million COVID-19 PCR tests performed to date representing ~20% of national testing  National cont

  11. Slide 11: Germany

    Germany  FY 2020 revenue  10% revenue growth  6% organic growth constant currency  No government subsidies received  COVID-19 response  Sonic amongst the first laboratories in Europe to commence COVID-19 testing  COVID-19 testing now in 24 Sonic laboratories, progressive ramp up in capacity 

  12. Slide 12: Switzerland

    Switzerland  FY 2020 revenue  14% revenue growth  5% organic revenue growth constant currency  COVID-19 response  Significant ramp up of COVID-19 testing volumes from late FY 2020 Switzerland  Operations A$492M 7%  New Lausanne laboratory includes clinical, anatomical and genetic pathology 

  13. Slide 13: UK

    UK  FY 2020 revenue  9% revenue growth  5% organic growth, constant currency  Government support to maintain essential services in pandemic (~£6.5 million)  COVID-19 response  Base business impacted by relatively high hospital weighting (re-purposed for COVID-19 patients)  Relatively late inv

  14. Slide 14: Belgium

    Belgium  FY 2020 revenue  1% revenue growth  -2% organic revenue growth, constant currency, impacted by pandemic  COVID-19 response  COVID-19 testing implemented in Antwerp laboratory, relatively low volumes in FY Belgium A$148M 2020, now increasing 2%  Operations  Two internal laboratory mer

  15. Slide 15: Sonic Imaging

    Sonic Imaging  FY 2020 revenue and earnings  4% revenue growth  6% EBITDA decline (excluding AASB 16)  No government subsidies received Sonic  COVID-19 response Imaging A$520M  Severe COVID-19 impact on revenues in March, April and May 8%  COVID-19 driven cost management, including temporary

  16. Slide 16: Sonic Clinical Services

    Sonic Clinical Services  FY 2020 revenue  Revenue growth flat  No government subsidies received SCS &Other A$418M  COVID-19 response 6%  Rapid, widespread introduction of telehealth consultations following government introduction of new Medicare fee  Adaptation of medical centre operations to

  17. Slide 17: Capital Management

    Capital Management 30 June 30 June 2020 2019 Net interest-bearing debt A$M 2,022 2,299 Equity A$M 5,664 5,492  Gearing ratio = Net debt / Net debt + equity (covenant limit <55%)  Interest cover = EBITA / Net interest expense (covenant limit >3.25) Gearing ratio % 26.1 29.5  Debt cover = Net debt

  18. Slide 18: Summary

    Summary  COVID-19  Sonic Healthcare responding magnificently to the call to combat COVID-19  Medical Leadership culture galvanising Sonic’s 37,000 staff to fill frontline pandemic roles  Leveraging deep investments in infrastructure to community benefit at a critical time in world history  Prov

  19. Slide 19: Thank you

    Sy SONIC SY HEALTHCARE Thank you

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