Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — Shareholder Meeting (November 2015)
26 slides from Sonic Healthcare's shareholder meeting presentation, Nov 19, 2015
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 19 November 2015
Slide 2: Forward-looking statements disclaimer
For personal use only 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 forwar
Slide 3: FY15 results summary
For personal use only A$ M FY ‘15 Revenue 4,201 EBITDA (before expensing non-recurring costs) 731 Net profit (after expensing non-recurring costs) 348 ‣ Revenue growth ‣ Organic growth ~5%, enhanced by accretive acquisitions ‣ Strong growth in Germany, UK and Switzerland ‣ US growth strengthening ‣
Slide 4: Dividends
For personal use only A$ FY ‘15 FY ‘14 Growth Interim Dividend $0.29 $0.27 7.4% Final Dividend $0.41 $0.40 2.5% Total Dividends $0.70 $0.67 4.5% ‣ Final dividend franked to 55% ‣ Record Date 11 September 2015 ‣ Payment Date 22 October 2015 ‣ Dividend Reinvestment Plan (DRP) active for final dividend
Slide 5: Dividend Reinvestment Plan
For personal use only ‣ Dividend Reinvestment Plan ‣ 1.5% discount ‣ 26.4% participation by shareholders ‣ Shares issued at $18.31 ‣ Dividend Shortfall Placement with CBA Equities ‣ Covered 71.9% of shortfall from shareholder participation ‣ Shares issued at $18.76 ‣ DRP and Dividend Shortfall Place
Slide 6: Dividends per share by financial year
For personal use only $0.75 $0.70 $0.65 $0.60 $0.55 $0.50 $0.45 Dividends $0.40 per share $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- Financial year
Slide 7: Tracking in line with guidance
For personal use only ‣ Tracking in line with guidance ‣ UK outperforming expectations ‣ Sonic’s Australian pathology revenue growth substantially stronger than Medicare market data ‣ Imaging market growth subdued, most likely related to uncertainty around Australian Medicare schedule review
Slide 8: FY16 guidance
For personal use only ‣ EBITDA ‣ A$815-840 million at constant currency rates (FY ‘15 FX rates) ‣ At current FX rates, full-year EBITDA growth expected to exceed 20% ‣ Normal earnings weighting to H2 more accentuated this year (acquisition costs in H1, acquisition synergies and cost initiatives ramp
Slide 9: Statutory revenue by segment
For personal use only New Zealand SCS $34 $362 1% 9% Imaging $414 Australia Belgium 10% $1,185 $103 28% 2% Switzerland $111 3% UK & Ireland $253 6% Germany USA $805 $930 19% 22% Statutory revenue in A$ M SCS = Sonic Clinical Services (IPN Medical Centres, occupational health and other clinical servi
Slide 10: Revenue history: Australia and International
For personal use only 3,000 2,500 2,000 A$ M 1,500 Australia 1,000 International 500 Indicative FY ‘16 revenues, assuming August 2015 FX rates - 1999 2016 est. 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Financial Year
Slide 11: Australia pathology
For personal use only ‣ FY ‘15 Revenue ‣ 5% growth, including SAN Pathology acquisition (added 50 bps) Australia $1,185 ‣ Fees and volumes impacted by Medicare changes 1 November 2014 28% ‣ Sonic growth substantially stronger than Medicare market data ‣ FY ‘15 Earnings ‣ Negative earnings growth in
Slide 12: USA
‣ FY ‘15 Revenue For personal use only ‣ Full-year revenue growth 2% (1% in H1, 3% in H2) ‣ Market volume growth improving ‣ FY ‘15 Earnings ‣ Negative earnings growth in FY ‘15, largely CBLPath-related ‣ Major restructure of CBLPath successfully completed USA $930 ‣ CBLPath recurring annual savings
Slide 13: Germany
For personal use only ‣ FY ‘15 revenue ‣ 11% growth, 6% organic, well above market growth ‣ Continued market share gains in all segments of operation ‣ Investments in IT, new tests and innovative technologies driving growth Germany ‣ Acquisitions and integration $805 19% ‣ Labco integration complete
Slide 14: Germany history and current position
For personal use only HISTORY Market entry in 2004 6 large and several smaller acquisitions Organic growth, integration of acquired laboratories, hospital projects, innovation and service CURRENT POSITION Market leader in Germany 8 Sonic Germany federation members 40 laboratories 2 cen
Slide 15: UK & Ireland
For personal use only ‣ FY ‘15 revenue growth 25% ‣ Includes 3 months of JV with UCLH and Royal Free ‣ Strong private market growth ‣ JV with University College London Hospital / Royal Free UK & ‣ Commenced 1 April 2015 Ireland $253 ‣ Includes North Middlesex University Hospital as customer 6% ‣ Tra
Slide 16: New Sonic UK lab
For personal use only New Sonic UK lab – H2 CY2016 “Halo Building” Euston Road Central London
Slide 17: Belgium
For personal use only ‣ Revenue growth returns after cycling through November 2013 fee cut ‣ KLD acquisition successfully closed 3 July 2015, integration underway ‣ Stable regulatory outlook Belgium $103 2%
Slide 18: Switzerland
For personal use only ‣ FY ‘15 revenue growth 5% Switzerland $111 3% ‣ Strong earnings and margin growth ‣ Stable regulatory environment ‣ Medisupport acquisition closed 2 July 2015 ‣ Sonic now clear #1 player in Switzerland ‣ Well placed for growth and further acquisitions
Slide 19: Medisupport Acquisition
Medisupport Acquisition For personal use only ‣ Strong market position ‣ Covering both French and German speaking regions ‣ Laboratories in 10 cities ‣ Attractive mix of routine and esoteric testing ‣ Excellent genetics capabilities, including next generation sequencing ‣ Outstanding cultural fit ‣
Slide 20: FY16 laboratory revenue mix
For personal use only NZ Belgium 1% 3% Switzerland 8% • UK ~40% increase in revenue with UCLH/Royal Free JV UK 9% Australia • Switzerland >200% increase in revenue with Medisupport acquisition 30% • Healthy organic revenue growth in all divisions • Australia ~30% of total Sonic laboratory revenue •
Slide 21: Imaging and Sonic Clinical Services
For personal use only SCS ‣ Australian Imaging: FY ‘15 revenue growth 3%, margin up 10 bps $362 ‣ Total imaging FY ‘15 revenue and margin impacted by 2014 sale of NZ business 9% Imaging $414 10% ‣ FY ‘16 YTD – market growth subdued ‣ Includes IPN Medical Centres and Occupational Health ‣ FY ‘15 reve
Slide 22: International expansion timeline
For personal use only ‣ 1987 – Australia ‣ 1999 – NZ ‣ 2002 – UK ‣ 2004 – Germany ‣ 2005 – USA ‣ 2007 – Switzerland ‣ 2010 – Belgium, Ireland
Slide 23: Revenue history and indicative FY16
For personal use only 5,000 4,500 4,000 3,500 3,000 A$ M 2,500 2,000 1,500 1,000 Indicative FY ‘16 500 revenues, assuming August 2015 FX rates -
Slide 24: The Sonic Difference: Medical Leadership
For personal use only Medical Leadership Personalised Respect for Company Operational Professional Service for Our People Conscience Excellence & Academic Doctors & Expertise Patients The Sonic Difference Federation of Medical Practices
Slide 25: Sonic poised for significant growth
For personal use only ‣ Sonic poised for significant growth ‣ Strong revenue and earnings growth forecast for FY ‘16 (refer guidance) ‣ Targeting additional acquisitions and contract opportunities ‣ FX tailwind expected in FY ‘16 ‣ Company strength ‣ Strong position in all markets, #1 position in Au
Slide 26: Thank you
For personal use only Thank you
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