Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — Shareholder Meeting (November 2010)
22 slides from Sonic Healthcare's shareholder meeting presentation, Nov 18, 2010
Slide 1: Annual General Meeting
Annual General Meeting 18 November 2010 Colin Goldschmidt CEO, Sonic Healthcare
Slide 2: Highlights
Highlights Business expansion in USA and Europe 5 synergistic acquisitions in USA and Germany Strong organic growth in USA Sonic enters Belgian market – new market, new growth prospects Synergy capture with margin expansion in USA and Germany Australian pathology Sonic in dominant mark
Slide 3: FY 2011 Guidance Reaffirmed
FY 2011 Guidance Reaffirmed FY 2011 Guidance Net profit after tax (NPAT) growth 5 - 15% Guidance Based on FY 2010 NPAT of A$293million On constant currency basis (FY 2010 rates) Excludes new acquisitions Earnings strongly weighted to second half of financial year Normal seasonal weightin
Slide 4: Dividend
Dividend 2010 2009 Change Interim Dividend $0.24 $0.22 9.1% Final Dividend $0.35 $0.35 0.0% Full Year Dividends $0.59 $0.57 3.5% Dividend franked to 35%
Slide 5: Financial Summary - Statutory
Financial Summary - Statutory FY 2010 FY 2009 Revenue A$M 2,995 3,014 EBITDA A$M 544 425 NPAT A$M 293 171 Operating cash flow A$M 429 430 Revised FY 2010 guidance achieved (NPAT A$290-295 million) FY 2010 – impacted by currency exchange rate movements FY 2009 – impacted by Non Recurring Items
Slide 6: Financial Summary - Operating
Financial Summary - Operating FY 2010 FY 2010 vs FY 2009 CONSTANT CURRENCY GROWTH Revenue A$M 3,259 8% EBITDA A$M 591 2% NPAT A$M 317 1% Adverse impacts on FY 2010 earnings growth NPAT ~A$18 million – Australian regulatory change impacts Queensland pathology – temporary loss of market share Lo
Slide 7: Pathology: Global Revenue Contribution
Pathology Global Revenue Contribution 2750 (42) 2700 150 2650 2600 (263) 2550 101 A$M 2500 2,708 2450 2400 2,499 2,445 2350 2300
Slide 8: Pathology: Global EBITDA Contribution
Pathology Global EBITDA Contribution 580 560 16 (24) 540 28 (14) 520 A$M 500 (48) 480 521 527 460 479 440
Slide 9: Organic Revenue Growth FY 2010
Organic Revenue Growth FY 2010 Organic Revenue Growth* Acquisitions excluded Australian pathology 2.3% USA 6.3% Europe 4.0% Radiology 3.5% * Constant currency basis
Slide 10: Sonic Revenue Split
Sonic Revenue Split FY 2009 vs FY 2010 FY 2009 FY 2010 (constant FX) IPN Medical Centres IPN Medical Centres $182 6% Radiology Radiology $358 $159 5% New Zealand $345 Pathology 11% Australian 12% Australian $74 2% New Zealand Pathology Pathology Pathology Belgium $901 $114 4% $881 $45 1% 28% Switzer
Slide 11: Australian Pathology: Regulatory Issues
Australian Pathology Regulatory Issues Medicare fee cuts 2% fee cut from July 2008 (A$180 million over 4 years) 5% fee cut from Nov 2009 (A$416 million over 4 years) Abolition of capped collection centre scheme (from 1 July 2010) Previous capped system designed to limit uncontrolled demand
Slide 12: Australian Pathology: Growth Dynamics
Australian Pathology Growth Dynamics Sonic commands strong market position Clear market leader in revenue and profitability Premium brands, leading position in specialist and hospital markets Most resilient Australian pathology company Sonic growth FY 2010 organic revenue growth 2.3% vs
Slide 13: Sonic Australian Pathology Organic Volume Growth 2010
Sonic Australian Pathology Organic Volume Growth 2010 8.0% 6.9% 6.0% 4.0% 2.8% 2.0% 1.5% -0.5% 0.0% JUL AUG SEP OCT -2.0% Industry growth – Rolling 3-month episode growth to Sept ‘10 is -1.0% (source: Medicare data) Sonic’s strong volume growth continuing month-to-date November Organic Volume Gr
Slide 14: USA
USA Sustained strong performance from Sonic USA Integration of acquisitions East Side (Rhode Island) integrating with Sunrise (NY operations) Piedmont Medical consolidated with Virginia operations Axiom (Tampa, FL) consolidated with Florida operations Recent announcement to acquire CBLPa
Slide 15: CBLPath Acquisition
CBLPath Acquisition CBLPath based in New York Strong presence in Northeast USA and expanding more broadly across the USA Excellent entry into the US anatomical pathology market (~US$5 billion p.a.) An outstanding business – quality, service, management and growth Purchase price US$123.5 mi
Slide 16: Germany
Germany Financial performance FY 2010 Organic revenue growth >3% Margin expansion of 20 bps (follows >100 bps expansion in FY 2009) Despite fee cuts in early 2009 Synergy gains on track Initial synergy target of €15 million p.a. ~70% achieved to date Synergy target expected to be excee
Slide 17: Sonic Enters Belgian Market
Sonic Enters Belgian Market Acquisition of Medhold Group completed 12 Feb 2010 Entry into a leading market position in Belgium and the Netherlands Based in Antwerp, serving predominantly Flanders region, Brussels and the Netherlands Exceptional management team and highly efficient operations
Slide 18: Sonic Imaging
Sonic Imaging Organic revenue growth 3.5% in FY 2010 Revenue and volume Medicare fee increase in Nov 2009 only applicable to bulk-billed items Strong growth in MRI and nuclear medicine Low industry CT volumes persist Efficiency benefits in FY 2011 Sonic’s new broadband network – esp in
Slide 19: Sonic Debt Summary
Sonic Debt Summary Investment Grade Credit Metrics 30 Jun 10 31 Dec 09 30 Jun 09 Net interest-bearing debt A$M 1,501 1,149 1,198 Gearing ratio % 37.0 31.3 32.0 Interest cover X 9.4 9.7 6.5 Debt cover X 2.6 1.9 2.2 Long-term (7-10 years) US debt raising completed Jan 2010 – US$250 million Bank de
Slide 20: Sonic Healthcare Global Operations
Sonic Healthcare Global Operations
Slide 21: Outlook
Outlook Sonic Healthcare in strong position in key markets Australia, USA, Germany Strong growth and synergies in USA and Europe Critical mass, integration prospects, outstanding management teams Australian pathology Sonic returning to normal growth trend Collaboration with Government
Slide 22: Thank You
SONIC HEALTHCARE Thank You ela | + | iA INS :
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