Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — Shareholder Meeting (November 2002)

24 slides from Sonic Healthcare's shareholder meeting presentation, Nov 13, 2002

  1. Slide 1: Annual General Meeting 13 November 2002

    ) ens = HEALTHCARE Annual General Meeting 13 November 2002 Colin Goldschmidt Managing Director

  2. Slide 2: Agenda

    @ SON EC HEALTHCARE Agenda 2002 Financial Results Revenue and Earnings 1st Half 2003 Guidance UK Pathology Sonic Future Strategy SciGen Spin Out Mark Compton (CEO)

  3. Slide 3: 2002 Full Year Results

    2002 Full Year Results __| 2002 | 2001 | Change Revenue $M 859.8 627.9 +37% EBITDA $M 183.7 131.9 +39% EBITA $M 146.7 110.6 +33% NPAT $M 33.8 26.2 +29% NPAT* $M 83.2 56.4 +47% EPS* cents 33.3 28.1 +19% Cash Generated $M 146.7 67.2 +118% |sonre : HEALTHCARE * Before Amortisation of Intangibles

  4. Slide 4: EBITA Margins

    EBITA Margins 2002 (1*Half) 15.7% 2002 (2™Half) 18.3% 2002 Full Year 17.1% SON EC HEALTHCARE

  5. Slide 5: Annual Revenue ($M)

    Annual Revenue ($M) 1,200 975(F) 1,000 800 860 628 $M 600 400 387 200 (9) 2000 2001 2002 2003(F) Revenue 387 628 860 975 |sonre : HEALTHCARE

  6. Slide 6: Sonic Healthcare Annual Revenues

    @ Sonic Healthcare 10 Year Annual Revenues 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003(F) O Revenue ($M) 33 47 57 89 134 147 173 387 628 860 975 SON EC HEALTHCARE

  7. Slide 7: EBITA ($M)

    @ 200.0 EBITA ($M) 180.0 160.0 140.0 120.0 $M 100.0 80.0 60.0 40.0 20.0 © 35.9 0.0 1999 2000 2001 2002 2003(F) EBITA 35.9 70.8 110.6 146.7 174 SON EC HEALTHCARE

  8. Slide 8: EBITA Growth (%)

    EBITA Growth (%) 60% 50% 40% 30% 20% 10% 0% 1997 1998 1999 2000 2001 2002 sone HEALTHCARE

  9. Slide 9: Earnings per Share

    Earnings per Share 35.0 30.0 LZ. 25.0 4 20.0 Cents , per share 15.0 4 10.0 5.0 0.0 1995 1996 1997 1998 1999 | 2000 | 2001 2002 EPS*| 58 8.0 9.5 11.8 16.7 21.7 28.1 33.3 Earnings per Share before Amortisation of Intangibles |sonre : HEALTHCARE

  10. Slide 10: EPS Growth (%)

    @ 45% 40% 35% 30% 25% 20% 18% 10% 5% 0% SONEC EPS Growth (%) min 1996 1997 1998 1999 2000 2001 2002 EPS = Earnings per Share before Amortisation of Intangibles HEALTHCARE 10

  11. Slide 11: YTD 2003

    YTD 2003 @ * Sonic performing within previous guidance range * 2003 Full Year Guidance (unchanged): 2002(A) | 2003(F) Growth (%)* Revenue $860M $970-980M 13.4% EBITA $147M $172-176M 18.4% EBITA Margin | 17.1% | 17.75-18.00% * 2003 1st Half EBITA guidance - $80-82million * 24 Half traditionally bette

  12. Slide 12: EBIT Growth Drivers - 2003

    EBIT Growth Drivers - 2003 @ e Revenue Growth/Marginal Profit — Market Growth — Market Share Growth — Synergistic Acquisitions Synergies/Cost Management — SAT Program — Corporate Initiatives Technology - IT — Workflow, instrumentation UK Market e SON EC HEALTHCARE 12

  13. Slide 13: Funding

    Funding @ ¢ General government support for “front-end” diagnostic medicine ¢« Funding Agreements — Radiology — June 2003 — Pathology — June 2004 ¢ Trend towards bulk-billing has plateaued SON EC HEALTHCARE 13

  14. Slide 14: UK Pathology

    UK Pathology SON EC HEALTHCARE

  15. Slide 15: TDL (The Doctors Laboratory)

    TDL (The Doctors Laboratory) @ ¢ TDL business tracking well — Revenue growing at over 15% — Q1, 2003 EBITA in line with budget ¢ Plans progressing for new laboratory facility — In Harley Street district of central London — Sonic design — Sonic workflow — Capex ~£1 million ¢ NHS opportunities — Sonic

  16. Slide 16: Sonic UK Strategy

    Sonic UK Strategy @ SON EC HEALTHCARE * Sonic/TDL Partnership — Sonic 15 year experience in Australia — TDL 15 year experience of UK market * Sonic/TDL/NHS Partnership — Service enhancements — Efficiency gains — Volume expansion — EBIT growth — Win-win outcomes ¢ Expand private sector pathology — Or

  17. Slide 17: NHS Pathology - Background

    NHS Pathology - Background @ Long standing recognition of problems (Audit Commission 1991/93) — Quality issues — Staffing issues — Service Issues * Capital investment in pathology neglected over many years ¢ Pressure to modernize pathology ¢ Increased emphasis on partnerships with private sector in

  18. Slide 18: July 2002 UK Department of Health

    July 2002 UK Department of Health ¢« Government believes private sector can make a positive contribution to NHS ¢ Private Sector contribution includes investment, expertise, process redesign and project management Government's Response to the House of Commons Health Committee’s First Report on the R

  19. Slide 19: UK Pathology Market

    UK Pathology Market @ e e e e SON EC HEALTHCARE £1 - 2 billion per annum Low spend by OECD standards Spent largely in NHS Annual growth 7 to 12 % 19

  20. Slide 20: Pathology Spend as % of GDP

    Pathology Spend as % of GDP UK 6.7% Western Europe ~12% USA 14.5% Australia 8.5-9.0% SON EC HEALTHCARE 20

  21. Slide 21: April 2002 UK Health

    April 2002 UK Health @ * “Catch-up” funding to 9.4% of GDP by 2008 * Increase of 7.5% above inflation expenditure on healthcare over next 5 years (2003-2008) * Reduce waiting lists and waiting times * Increase NHS infrastructure * Foster public-private partnerships State of Health Report :Delivering

  22. Slide 22: Models for Public Private Partnerships

    Models for Public Private Partnerships @ Facilities Management — Management Fee — Performance Bonus Financial Partnering — Sharing of cost savings Joint Venture Outsourcing — Service Contracts SON EC HEALTHCARE 22

  23. Slide 23: Sonic Future Strategy

    Sonic Future Strategy Pathology — Ongoing consolidation and rationalisation — SAT strategy to capture synergies — Organic, market share growth — Build relationships with independent healthcare entities — Acquisitions Radiology — Organic growth and margin expansion — Capture synergies with Sonic path

  24. Slide 24: Thank you

    @ SON EC HEALTHCARE Thank you 24

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