Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — Shareholder Meeting (November 2016)
32 slides from Sonic Healthcare's shareholder meeting presentation, Nov 17, 2016
Slide 1: Annual General Meeting
Annual General Meeting 17 November 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
FINANCIALS FY ‘16 Headlines ‣ A milestone year ‣ Annual revenue >A$5 billion ‣ Earnings per share (EPS) > A$1.00 ‣ FY ‘16 guidance achieved ‣ EBITDA of A$831 million ‣ EBITDA guidance A$815-840 million ‣ Constant currency ‣ Revenue growth 20% to A$5.1 billion ‣ EPS growth 27% to A$1.09 ‣ Full-year d
Slide 4: FY '16 Summary
FINANCIALS FY ‘16 Summary A$M FY ’16 FY ’15 Growth ‣ Revenue growth Revenue 5,052 4,201 20% ‣ Strong organic growth in laboratory division ~7% (constant currency, including UK JV) Underlying EBITDA 876 731 20% ‣ Growth further enhanced by accretive acquisitions and FX tailwind ‣ Earnings growth Net
Slide 5: FY '16 Dividends
FINANCIALS FY ‘16 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%
Slide 6: Full-year Dividend History
FINANCIALS 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 7: FY '17 Guidance
FINANCIALS FY ‘17 Guidance ‣ Guidance confirmed after 4 months’ trading ‣ Staber and GLP Systems acquisitions – minor FY ‘17 benefit due to timing/size ‣ Guidance as issued 17 August 2016: ‣ EBITDA ‣ Approximately 5% growth on underlying FY ‘16 EBITDA of A$876 million (constant currency FY ‘16 FX ra
Slide 8: FY '16 – Revenue Split
FINANCIALS FY ‘16 – Revenue Split SCS $409 New Zealand Imaging 8% $26 1% $421 Australia Belgium 8% $1,254 $133 3% 25% Switzerland $373 7% • Statutory revenue in A$ M • Revenue excludes non-recurring gain USA ($35 M) and interest income ($4 M) $1,088 22% SCS - Sonic Clinical Services Germany (IPN Med
Slide 9: Revenue History
FINANCIALS Revenue History 5,000 4,000 International Australia 3,000 59% 41% A$ M 2,000 1,000 FY 2016 Australia 0 International Financial Year
Slide 10: International Expansion
ABOUT SONIC International Expansion 2002 2004 United Kingdom Germany 2010 2007 Ireland Switzerland 2005 1987 United States Australia 2010 1999 Belgium New Zealand
Slide 11: Acquisition of Staber Laboratory Group (Germany)
ABOUT SONIC Acquisition of Staber Laboratory Group (Germany) Kiel ‣ Acquisition announced on 4 November 2016 ‣ Completion expected Q1 calendar 2017 HAMBURG ‣ Annual revenue ~€80 million (~A$115 million) BERLIN ‣ Purchase price €120 million (~A$170 million) ‣ ~1,000 staff, including 50 pathologists ‣
Slide 12: Federated Structure
MANAGEMENT STRUCTURE Federated Structure Australia DHM Clinipath SNP DSPL MP Sonic Capital Clinpath S.IML
Slide 13: Global Federation
MANAGEMENT STRUCTURE Global Federation Synergies Procurement Finance SHUSA IT Centralisation Best practice Culture / Values
Slide 14: Procurement
ABOUT GLOBAL SONIC SYNERGIES Procurement ‣ Consumables: 16% of revenue, A$812 million in FY2016 ‣ Global procurement program ‣ Standardise and lower costs across 8 countries of operation ‣ A collaboration involving Sonic financial / technical / professional experts ‣ Competitive tenders (RFPs) ‣ Son
Slide 15: Sonic Healthcare today
ABOUT SONIC Sonic Healthcare today Operations FY 2016 Countries of operation 8 Patients consultations per year 105,000,000 Patient consultations per business day 420,000 #1 Australia Germany Switzerland UK
Slide 16: Our Staff
MEDICAL ABOUT SONIC LEADERSHIP: RESPECT FOR OUR PEOPLE Our Staff Employment 30 June 2016 Total employees 31,298 Women in workforce 76.4% Women in senior leadership positions 50.5% Temporary staff & contractors engaged in total workforce 2.7% Annual employee turnover 16.5% Annual senior leadership tu
Slide 17: Employed Staff by Country
MEDICAL ABOUT SONIC LEADERSHIP: RESPECT FOR OUR PEOPLE Employed Staff by Country Country Employees Australia 15,877 USA 6,528 Germany 5,565 UK 1,597 Switzerland 987 Belgium 502 New Zealand 183 Ireland 59 SONIC TOTAL 31,298
Slide 18: Sonic Healthcare – at a glance
ABOUT SONIC Sonic Healthcare – at a glance World’s 3rd largest medical Annual revenues Market diagnostic > A$5 billion capitalisation company ~A$9 billion >31,000 Laboratory >100 million employees medicine, imaging patients per year worldwide and clinical services
Slide 19: Medical Leadership
MEDICAL LEADERSHIP Medical Leadership Personalised Professional Respect for Operational Company Service for & Academic Our People Excellence Conscience Doctors & Expertise Patients
Slide 20: Sonic Dx – Secure online results service
MEDICAL LEADERSHIP: PERSONALISED SERVICE FOR DOCTORS Sonic Dx – Secure online results service ‣ Available to all referring doctors in Australia ‣ View pathology results – anywhere, anytime ‣ Securely share reports with medical colleagues or patients ‣ Request additional tests electronically ‣ View c
Slide 21: Going to the moon and back for our patients
MEDICAL LEADERSHIP: PERSONALISED SERVICE FOR PATIENTS Going to the moon and back for our patients ‣ Sonic’s Australian pathology collectors made 640,000 home visits in FY 2016 to patients unable to attend a collection centre ‣ 5.1 million Km travelled in FY2016 by these collectors
Slide 22: Committed to continuous education
MEDICAL LEADERSHIP: PROFESSIONAL & ACADEMIC EXPERTISE Committed to continuous education ‣ Graduate and postgraduate medical training ‣ Consultation with clinicians over patient management ‣ Telephone consultations ‣ Hospital multi-disciplinary team meetings ‣ Academic research ‣ Journal publications
Slide 23: Sonic Pathology Handbook
MEDICAL LEADERSHIP: PROFESSIONAL & ACADEMIC EXPERTISE Sonic Pathology Handbook ‣ A practical guide to pathology tests, written by Sonic for Australian clinicians ‣ Powerful collaboration amongst 65 Sonic pathologists ‣ Reflects Sonic’s deep expertise across all areas of pathology ‣ 35,000 copies dis
Slide 24: SonicConnect
MEDICAL LEADERSHIP: MEDICAL LEADERSHIP: RESPECT PROFESSIONAL & ACADEMIC FOR OUR PEOPLE EXPERTISE SonicConnect ‣ A dedicated corporate resource aimed at connecting Sonic’s people via culture, values and leadership principles ‣ Operating globally, SonicConnect propagates Sonic’s culture and promotes a
Slide 25: GLP Systems Track
MEDICAL LEADERSHIP: OPERATIONAL EXCELLENCE GLP Systems Track Total Lab Automation ‣ Sonic moves to 80% ownership of GLP Systems (announced 8 November 2016) ‣ Revolutionary automated track system for laboratory specimen management ‣ Joint Sonic/GLP Systems initiative ‣ Developed in Sonic’s Hamburg la
Slide 26: Building for the Future
MEDICAL LEADERSHIP: OPERATIONAL EXCELLENCE Building for the Future ‣ Infrastructure expansion and renewal ‣ Growth of operations ‣ Focus on quality ‣ Drive for efficiencies ‣ Ongoing investment in state-of-the-art facilities ‣ Laboratories, imaging facilities, equipment platforms, IT systems ‣ Intel
Slide 27: Bioscientia – Ingelheim, Germany
MEDICAL LEADERSHIP: OPERATIONAL EXCELLENCE (Building for the future) Bioscientia – Ingelheim, Germany
Slide 28: Sullivan Nicolaides Pathology - Brisbane
MEDICAL LEADERSHIP: OPERATIONAL EXCELLENCE (Building for the future) Sullivan Nicolaides Pathology - Brisbane
Slide 29: Catalyst Program
MEDICAL LEADERSHIP: COMPANY CONSCIENCE Catalyst Program ‣ Sonic’s dedicated charitable aid program ‣ Objectives of Catalyst Program ‣ Provide long-term healthcare improvements to manifestly disadvantaged communities ‣ Make use of in-house expertise to establish sustainable, localised self-reliance i
Slide 30: Catalyst Program – Sharing Our Expertise
MEDICAL LEADERSHIP: COMPANY CONSCIENCE Catalyst Program – Sharing Our Expertise Bahir Dar ETHIOPIA ‣ 5 locations in Africa ‣ Partnership with HEAL Africa and Mille Hospital other local hospitals since 1996 ETHIOPIA ‣ Establishing and equipping pathology and radiology departments, delivering Hamlin F
Slide 31: Summary
SUMMARY Summary ‣ Sonic Healthcare in a strong and stable position ‣ 31,000 people employed in 8 countries of operation ‣ A$5 billion in annual revenue, A$450 million p.a. in net profit in FY 2016 ‣ Strong industry drivers – ageing of population, new tests, preventative medicine ‣ Medical Leadership
Slide 32: Thank you
@ SONIC sey | HEALTHCARE Thank you
Sonic Healthcare — Shareholder Meeting (November 2016) on 6ix