Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — FY2024 Earnings Presentation

23 slides from Sonic Healthcare's earnings presentation, Aug 22, 2024

  1. Slide 1: CEO Presentation – Full Year Results to 30 June 2024

    22 August 2024 The Manager – Listings Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Via electronic lodgement Dear Sir / Madam CEO PRESENTATION – FULL YEAR RESULTS TO 30 JUNE 2024 At 10:00am AEST today, Dr Colin Goldschmidt, Chief Executive Officer, will host

  2. Slide 2: Financial and Operational Review

    Financial and Operational Review Year ended 30 June 2024 Dr Colin Goldschmidt CEO, Sonic Healthcare 22 August 2024

  3. Slide 3: 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

  4. Slide 4: Headlines

    Headlines A$M (Statutory) FY 2024 FY 2023 Change Base business* revenue 8,905 7,684 16% COVID revenue 62 485 (87)% Total Revenue 8,967 8,169 10% EBITDA (excluding gain related to sale of West division USA) 1,602 1,708 (6)% Net Profit 511 685 (25)%  FY 2024 EBITDA in line with most recent guidance (

  5. Slide 5: FY 2025 Guidance

    FY 2025 Guidance  Guidance  EBITDA A$1.70 – 1.75 billion (constant currency)  Guidance reflects up to ~10% EBITDA growth on FY 2024  July 2024 EBITDA in line with budget  Depreciation expense (including on leased assets) as a percentage of revenue expected to be similar to FY 2024  Interest ex

  6. Slide 6: Recent Acquisitions and Major Contracts

    Recent Acquisitions and Major Contracts ~ Annual Revenue Acquisition / Contract Timing (A$M) Germany Medical Laboratories Duesseldorf (MLD) 85 Leading laboratory in Duesseldorf, settled July 2023 Diagnosticum Laboratory Group 110 Laboratories across Eastern Germany, settled October 2023 Smaller labo

  7. Slide 7: Earnings Growth FY 2025 and Beyond

    Earnings Growth FY 2025 and Beyond  Ongoing  Strong base business organic revenue growth, tight cost control and consequent margin expansion  Benefit of annual fee indexation in various markets and contracts, including Radiology, UK, Belgium, SCS and Australian Pathology (partial from July 2025)

  8. Slide 8: Dividends

    Dividends Dividend History A$ FY 2024 FY 2023 Growth $1.10 Interim Dividend $0.43 $0.42 2% $1.00 $0.90 Final Dividend $0.63 $0.62 2% $0.80 Total Dividends $1.06 $1.04 2% $0.70 $0.60 A$ $0.50  Final dividend unfranked $0.40  Record Date 5 September 2024 $0.30  Payment Date 19 September 2024 $0.20

  9. Slide 9: Capital Management

    Capital Management Debt Cover History 3.5 3.0 30 June 30 June 2.5 2024 2023 2.0 Ratio (X) Net interest-bearing debt A$M 2,349 886 1.5 Equity A$M 8,075 7,922 1.0 Pre-pandemic average Debt cover X 1.9 0.6 0.5 Gearing ratio % 22.3 9.9 0.0 Interest cover X 12.0 29.4 12 months ended  Increase in net deb

  10. Slide 10: FY 2024 Revenue Split

    FY 2024 Revenue Split SCS/Other A$446M 5% Radiology NZ A$880M A$32M 10% USA Belgium A$2,147M A$147M 24% 2% UK A$670M 7% Revenue in A$ millions Total Revenue A$8,967 million (including A$25 million interest) Switzerland A$889M 10% Australia SCS / Other = Sonic Clinical Services (IPN A$1,962M Medical

  11. Slide 11: USA

    USA  FY 2024 revenue  Base business organic growth 3%  Operations  Formation of new dermatopathology division to integrate PathologyWatch business and proprietary digital pathology platform  Aggressive rollout of digital dermatopathology system in progress, driving growth and cost efficiencies

  12. Slide 12: Australian Pathology

    Australian Pathology  FY 2024 revenue  Base business organic growth 10%, including market share gains  Strong growth from specialists, driving complex tests, anatomical pathology and genetics, including newly Medicare-funded reproductive carrier screening test  Equivalent strong growth in GP ref

  13. Slide 13: Germany

    Germany  FY 2024 revenue  Base business organic growth 7%  Strength in specialist and hospital segments driving growth in complex testing, including anatomical and molecular pathology, Oncotype DX®, genetic and microbiome testing  Acquisitions  MLD and Diagnosticum integration workstreams well

  14. Slide 14: Switzerland

    Switzerland  FY 2024 revenue  Base business organic growth 5%  Acquisitions  Dr Risch Group completed March 2024  Revenue ~CHF94 million p.a. (Switzerland), ~CHF8 million p.a. (Liechtenstein)  Purchase price CHF117 million, including CHF30 million in Sonic shares  ~650 staff, 13 laboratories

  15. Slide 15: Sonic Suisse

    Sonic Suisse Sonic Suisse  Integration of Medisupport, Medica, Medisyn and Laboratory locations, including hospital sites Dr Risch Group forming new unified national group  Sonic Suisse management team, led by CEO Blaise Mentha, with representatives from all four entities coordinating all central

  16. Slide 16: UK

    UK  FY 2024 revenue  Base business organic growth 9%  Strong private and NHS base business growth including contract fee indexation and private market fee increases  Operations  Whittington Health NHS Trust 10-year outsource contract successfully commenced April 2024  Hertfordshire and West Es

  17. Slide 17: Belgium

    Belgium  FY 2024 revenue  Base business organic growth flat, impacted by fee cut  15% cut to national fee schedule, partially offset by fee indexation of 6%, both effective January 2024  Mitigations include price increases for tests not on fee schedule and increased focus on Belgium automation a

  18. Slide 18: Radiology

    Radiology  FY 2024 revenue and earnings  Revenue growth 11%  Organic revenue growth 10%  EBITDA growth 14% Radiology A$880M  Margin expansion of ~70 bps 10%  Operations  Ongoing trend to higher value modalities along with expansion of private fees  Annual indexation of Medicare fees: 3.5% fr

  19. Slide 19: Sonic Clinical Services (SCS)

    Sonic Clinical Services (SCS)  FY 2024 revenue and earnings SCS/Other  Revenue growth 13%, organic growth 5% A$446M  EBITDA growth 9% 5%  Operations  Organic revenue growth reflects increased Government funding and private billing for GP services  Annual indexation of GP Medicare fees: 3.5% fr

  20. Slide 20: Digital Pathology and AI Update

    Digital Pathology and AI Update  Digital pathology (digitisation in anatomical pathology)  Anatomical pathology undergoing revolutionary transformation due to automation, digitisation and the use of AI tools  Sonic investing in digital pathology infrastructure to unlock material upside from gains

  21. Slide 21: FY 2024 Sustainability Report

    FY 2024 Sustainability Report To be published November 2024 A+ Leader C+ Prime Independent ESG ratings improved during FY 2023: Sonic Healthcare Results FY 2024

  22. Slide 22: Outlook

    Outlook  Leading market positions, particularly in specialist and hospital market segments  Strong organic base business revenue growth ongoing, underpinned by Medical Leadership and brand differentiation, reputation and high-quality services  Margin expansion supported by ongoing revenue growth,

  23. Slide 23: Thank you

    Sy SONIC SY HEALTHCARE Thank you

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