Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — H1 FY2017 Earnings Presentation
21 slides from Sonic Healthcare's earnings presentation, Feb 15, 2017
Slide 1: Financial and Operational Review
Financial and Operational Review For the half year ended 31 December 2016 Colin Goldschmidt CEO, Sonic Healthcare 15 February 2017
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: Headlines
Headlines ‣ On track to achieve full-year FY 2017 guidance ‣ H1 FY 2017 results ‣ Revenue growth 5%, underlying EBITDA growth 6% (constant currency) ‣ Margin expansion in laboratory division 30 basis points, driven by international operations ‣ Australian earnings adversely impacted by Government po
Slide 4: Financial Summary
Summary Financial Summary STATUTORY CONSTANT CURRENCY A$ M H1 FY 2017 H1 FY 2016 Growth H1 FY 2017 H1 FY 2016 Growth Revenue 2,476 2,453 1% 2,575 2,453 5% EBITDA (before expensing non-recurring costs) 414 409 1% 431 409 6% Net profit (after expensing non-recurring costs) 197 188 5% 206 188 10% Earni
Slide 5: FY 2017 Guidance Maintained
FY 2017 Guidance Maintained ‣ EBITDA ‣ Guidance issued 17 August 2016: Approximately 5% growth on underlying FY 2016 EBITDA of A$876 million (constant currency FY 2016 FX rates), excluding acquisitions in the period ‣ On track after 7 months’ trading to achieve full-year guidance ‣ Acquisitions expe
Slide 6: Dividends
Dividends A$ H1 FY 2017 H1 FY 2016 Growth Interim Dividend 0.31 0.30 3.3% ‣ Interim dividend franked to 20% ‣ FY 2017 final dividend franking level expected to be ~20% ‣ Franking level impacted by growth in international earnings, as well as interest, corporate overhead and other (e.g. R&D) tax dedu
Slide 7: H1 FY 2017 Revenue Split
H1 FY 2017 Revenue Split SCS $205 8% New Zealand Imaging $13 1% $216 Australia 9% Belgium $649 $61 2% 26% UK & Ireland $169 7% Switzerland $183 7% USA $535 22% Germany $443 18% SCS = Sonic Clinical Services Statutory revenue in A$ millions (medical centres, occupational health and Total H1 FY 2017 r
Slide 8: Australian Pathology
Australian Pathology ‣ Revenue ‣ 7% growth, 4% organic, ahead of Medicare market data ‣ APP (Adelaide) acquisition in December 2015, synergy realisation on track ‣ Earnings ‣ Modest earnings growth excluding APP acquisition ‣ Collection centre cost burden remains but cost growth contained in period
Slide 9: New Sullivan Nicolaides Pathology laboratory
New Sullivan Nicolaides Pathology laboratory Brisbane, Australia
Slide 10: USA
USA ‣ Revenue ‣ 3.3% organic growth (constant currency), continues growth momentum of recent years ‣ Ongoing strong growth at CPL, Sonic’s largest US lab, based in Austin, Texas ‣ Earnings growth with stable margins ‣ Hospital joint ventures ‣ Western Connecticut Health Network: partnership for lab
Slide 11: Danbury Hospital
Danbury Hospital Largest hospital in Western Connecticut Health Network
Slide 12: Germany
Germany ‣ Financials ‣ 6% organic revenue growth (constant currency), well above market growth ‣ Strong earnings growth and margin expansion ‣ Synergistic acquisitions ‣ Staber Laboratory Group, completed 17 January 2017, revenue ~€80 million p.a. ‣ Medical Laboratory Bremen expected to complete Jul
Slide 13: New Bioscientia Laboratory
New Bioscientia Laboratory Ingelheim, Germany
Slide 14: Switzerland
Switzerland ‣ Financials ‣ 8% revenue growth (constant currency) ‣ Strong earnings and margin growth ‣ Operational highlights ‣ Medica (Zurich) continuing strong performance ‣ Medisupport (acquired July 2015) delivering on expected synergies ‣ Regulatory environment stable 14
Slide 15: UK
UK ‣ Financials ‣ 3% organic growth (constant currency) ‣ Private revenue (“Harley Street” market, non-hospital) growth 9% ‣ Revenue and earnings impacted by contractual adjustments and lower growth in hospital volumes ‣ Operational highlights ‣ Health Services Laboratories (HSL) joint venture with
Slide 16: Belgium
Belgium ‣ Financials ‣ Flat revenue growth (constant currency) ‣ Revenue and earnings impacted by fee cut 1 April 2016 ‣ Operations ‣ KLD acquisition (July 2015) – integration initiatives ongoing ‣ Antwerp laboratory awarded national HPV (cervical cancer) screening program Belgium ‣ Stable operating
Slide 17: Sonic Imaging
Sonic Imaging ‣ Financials ‣ 4% revenue growth, in line with Medicare market data ‣ Market growth continues to improve, yet still below historical trend rate ‣ EBITA growth of 3% ‣ Operational highlights ‣ Ongoing investment in latest technologies (5th PET CT scanner, prostate imaging etc) ‣ Establi
Slide 18: Sonic Clinical Services (SCS)
Sonic Clinical Services (SCS) ‣ SCS includes medical centres and occupational health ‣ Australia’s largest primary care and occupational health provider ‣ 235 centres and ~2,200 GPs ‣ Financials ‣ 6% revenue growth, including acquisitions ‣ Medical centre earnings impacted by GP fee indexation freez
Slide 19: Debt Metrics
Debt Metrics 31 Dec 2016 30 Jun 2016 Net interest-bearing debt A$ M 2,395 2,284 Gearing ratio % 38.8 38.0 Interest cover X 11.3 11.5 Debt cover X 2.6 2.6 ‣ Increase in debt due to acquisitions, FX changes and investment in new laboratory buildings and equipment ‣ Available headroom post-interim divi
Slide 20: Outlook
Outlook ‣ On track to achieve full-year guidance, usual seasonal earnings weighting to H2 ‣ Ongoing strong organic revenue growth of ~5% expected, underpinned by industry drivers and strong, established brands ‣ Announced synergistic acquisitions and hospital joint ventures to enhance earnings growt
Slide 21: Thank you
@ SONIC SS | HEALTHCARE Thank you Sees i