Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — FY2016 Earnings Presentation
20 slides from Sonic Healthcare's earnings presentation, Aug 17, 2016
Slide 1: Financial and Operational Review
Financial and Operational Review For the year ended 30 June 2016 Colin Goldschmidt CEO, Sonic Healthcare 17 August 2016
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: FY '16 Headlines
FY ‘16 Headlines ‣ FY ’16 guidance achieved: A$831 million vs A$815-840 million EBITDA constant currency ‣ Revenue growth 20% to A$5.1 billion ‣ Earnings per share (EPS) growth 27% to A$1.09 ‣ Final dividend up 7.3% to A$0.44 per share (full-year up 5.7% to A$0.74) ‣ Strong earnings growth in Europe
Slide 4: FY '17 Guidance
FY ‘17 Guidance ‣ EBITDA ‣ Approximately 5% growth on underlying FY ‘16 EBITDA of A$876 million (constant currency FY ‘16 FX rates) ‣ Allows for A$5 million new rent for sale/lease-back properties ‣ Excludes potential upside from future acquisitions and Australian regulatory reform ‣ Interest expens
Slide 5: FY '16 Summary
FY ‘16 Summary A$M FY ’16 FY ’15 Growth Revenue 5,052 4,201 20% Underlying EBITDA (before non-recurring items) 876 731 20% EBITDA (after non-recurring items) 880 695 27% Net profit (after non-recurring items) 451 348 30% Cash generated from operations 708 512 38% Earnings per share (A$) (after non-r
Slide 6: Dividends
Dividends A$ FY ‘16 FY ‘15 Growth Interim Dividend $0.30 $0.29 3.4% Final Dividend $0.44 $0.41 7.3% Total Dividends $0.74 $0.70 5.7% ‣ Final dividend franked to 30% ‣ Record Date 9 September 2016 ‣ Payment Date 27 September 2016 ‣ Dividend Reinvestment Plan suspended
Slide 7: Full-year Dividend History
Full-year Dividend History $0.80 $0.74 $0.70 $0.60 $0.50 A$ $0.40 $0.30 $0.20 $0.10 $0.02 $- Financial Year
Slide 8: FY '16 Revenue Split
FY ‘16 Revenue Split SCS $409 New Zealand Imaging 8% $26 1% $421 Australia 8% Belgium $1,254 $133 3% 25% Switzerland $373 7% UK & Ireland $395 USA 8% $1,088 22% Germany $914 18% SCS = Sonic Clinical Services (IPN • Statutory revenue in A$ M Medical Centres, occupational health • Revenue excludes non
Slide 9: Revenue
Revenue 5,000 4,000 3,000 Australia 41% A$ M 2,000 International 59% 1,000 2016 0 Financial Year Australia International
Slide 10: Australian Pathology
Australian Pathology ‣ Revenue ‣ 6% growth, 4% organic, in line with Medicare market growth Australia ‣ APP (Adelaide) acquisition (December 2015) fully integrated A$1,254 M 25% ‣ Earnings ‣ Negative earnings growth in FY ‘16 ‣ Impact of specimen collection infrastructure costs and Nov ‘14 Medicare
Slide 11: USA
USA ‣ Revenue ‣ 2% organic growth (constant currency) ‣ 17% growth in A$ (statutory) ‣ Growth variable between divisions: >6% growth at CPL (Texas, Sonic’s largest US lab), negative growth at restructured CBLPath (yet strong earnings growth) ‣ Operational highlights USA A$1,088 M ‣ Mid-Atlantic divi
Slide 12: Germany
Germany ‣ Revenue ‣ 7% growth, 6% organic (constant currency), well above market growth ‣ 14% growth in A$ (statutory) ‣ Operational highlights ‣ Market share gains in all segments due to quality and service excellence ‣ Leading position in human genetics / next-generation sequencing (NGS) Germany A
Slide 13: UK
UK ‣ Revenue ‣ 46% organic growth (constant currency) ‣ 57% growth in A$ (statutory) ‣ Private sector revenue growth 8% (organic) ‣ Operational highlights ‣ Health Services Laboratories (HSL) joint venture with UCLH and Royal Free (commenced 1 April 2015) performing ahead of expectations ‣ New outso
Slide 14: Switzerland
Switzerland ‣ Revenue ‣ 205% growth, 9% organic (constant currency) ‣ 237% growth in A$ (statutory) ‣ Operational highlights ‣ Medisupport acquisition (July 2015) performing strongly ‣ Medica business #1 in Zurich, ongoing strong performance ‣ Leading provider of esoteric testing in Switzerland ‣ Qu
Slide 15: Belgium
Belgium ‣ Revenue ‣ 22% growth, 3% organic (constant currency) Belgium ‣ 29% growth in A$ (statutory) A$133 M 3% ‣ Operational highlights ‣ KLD acquisition (July 2015) – integration initiatives well advanced ‣ Strong operational and financial performance ‣ Regulatory environment ‣ ~4% fee reduction
Slide 16: Sonic Imaging
Sonic Imaging Imaging ‣ Revenue A$421 M ‣ Full-year growth ~2% (H1 growth <1%, H2 growth >2%) 8% ‣ Market growth improving, yet still subdued ‣ Expect underlying demand to return to historical growth levels ‣ Earnings ‣ Full-year earnings growth negative, improving trend in H2 ‣ Expect positive earn
Slide 17: Sonic Clinical Services (SCS)
Sonic Clinical Services (SCS) SCS A$409 M 8% ‣ SCS includes medical centres and occupational health ‣ Australia’s largest primary care and occupational health provider ‣ 240 centres and ~2,150 GPs ‣ Revenue and earnings ‣ 13% revenue growth, including acquisitions ‣ Medical centre revenue impacted b
Slide 18: Capital Management
Capital Management 30 June ‘16 30 June ‘15 Net interest-bearing debt A$ M 2,284 1,976 Equity A$ M 3,733 3,326 Gearing ratio % 38.0 37.3 Interest cover X 11.5 10.8 Debt cover X 2.6 2.7 ‣ Increase in debt due to FX changes (~A$60 million) and acquisitions ‣ Opportune sale and lease-back of two propert
Slide 19: Outlook
Outlook ‣ Expect solid FY ‘17 earnings growth ‣ Ongoing growth supported by strong industry drivers: population growth and ageing, new tests, focus on preventative medicine and chronic disease management ‣ Progressive dividend policy ‣ Market leader in four major Western countries, strong position i
Slide 20: Thank you
@ SONIC sy | HEALTHCARE Thank you a BE ene |