Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — H1 FY2011 Earnings Presentation
18 slides from Sonic Healthcare's earnings presentation, Feb 22, 2011
Slide 1: Half Year Results
Half Year Results For the period ended 31 December, 2010 Colin Goldschmidt CEO, Sonic Healthcare 22 February 2011
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: Summary
Summary Financial summary Revenue up 8% (constant currency) EBITDA up 3% (constant currency) Operating cashflow up 12% Margin expansion in all major divisions except Australian pathology Volume growth returns to Australian pathology market Sonic gains market share in Australian patholo
Slide 4: Financial Summary
Financial Summary H1 ‘11 H1 ‘11 vs H1 ‘10 CONSTANT GROWTH CURRENCY* Revenue A$M 1,612 8% EBITDA A$M 283 3% Interest Expense A$M 33 56% NPAT A$M 144 (7%) Operating Cash Flow A$M 221 12% • H1 ‘11 – impacted by currency exchange rate movements • *H1 ‘11 constant currency – presented using currency exch
Slide 5: FY 2011 Guidance
FY 2011 Guidance Full-year guidance issued Aug 2010 – NPAT growth 5-15% Expect full-year NPAT growth towards lower end of range Australian pathology regulatory issues Severe weather – Queensland floods and northern hemisphere winter Guidance Based on FY 2010 NPAT of A$293million On con
Slide 6: Revenue Split
Revenue Split H1 ‘11 IPN $110 7% New Zealand $33 2% Radiology $184 12% Australia Switzerland $457 $33 2% 30% Belgium $41 3% UK & Ireland $48 3% Germany $262 USA 18% $342 23% Revenue in A$ million
Slide 7: Sonic Australian Pathology
Sonic Australian Pathology Organic Volume Growth FY ‘11 10.0% 8.3% 8.0% 7.2% 6.9% 6.7% 6.0% 4.0% 2.8% 2.0% 1.5% -0.5% 0.0% JUL AUG SEP OCT NOV DEC JAN -2.0% Sonic organic volume growth H1 ‘11 vs H1 ‘10 Australia – Sonic 4.1% vs Market 3.3% (source: Medicare data) Australia excl. Queensland – Son
Slide 8: Sonic Australian Pathology
Sonic Australian Pathology Operations Government fee cuts (1 Nov ‘09) and new collection centre regulations (1 Jul ‘10) EBITDA reduction of $30 million H1 ‘11 vs H1 ‘10 Fee cut effect (extra 4 months vs comparative), partially mitigated by Sonic’s private billing initiatives Reversal of co-p
Slide 9: Australian Pathology
Australian Pathology Collection Centre Changes Abolition of capped collection centre scheme (from 1 July 2010) Previous capped system designed to limit uncontrolled demand and industry cost Market blowout in new collection centres with ~1,100 new centres added to prior ~2,400 Almost all new
Slide 10: USA
USA Revenue growth 10% Margin expansion 120 bps Outstanding financial and operational performance Synergy capture ongoing Procurement, IT standardisation (Apollo), centralisation of testing Advancing esoteric capabilities in Austin lab 3 acquisitions completed in past 6 months CBLPat
Slide 11: Europe
Europe Germany, Belgium, Switzerland Germany Revenue growth 7% Margin expansion 60 bps Ongoing synergy capture (lab mergers, procurement, courier restructure, equipment servicing) Head office established Jan 2011 Stable regulatory environment – no changes expected to fee schedules Acqu
Slide 12: Europe
Europe UK & Ireland UK Revenue growth 8% Margin expansion 50 bps New BMI contract (70 hospitals) – transition under way, revenue and earnings will commence in FY ‘12 NHS outsourcing opportunities ahead Private hospital outsourcing opportunities Ireland Beach head established via cyto
Slide 13: Sonic Imaging Medical Centres – IPN
Sonic Imaging Medical Centres – IPN Sonic Imaging Revenue growth 2% Margin expansion 110 bps Extensive review of operations and cost structures completed Radiologists and staff committed to business improvement IPN Revenue growth 29% Margin expansion 90 bps Strong organic growth ba
Slide 14: Sonic Debt Summary
Sonic Debt Summary Investment Grade Credit Metrics 31 Dec ‘10 30 Jun ‘10 31 Dec ‘09 Net interest-bearing debt A$M 1,440 1,501 1,149 Gearing ratio % 37.1 37.0 31.3 Interest cover X 8.0 9.4 9.7 Debt cover X 2.6 2.6 1.9 All debt drawn in foreign currencies and affected by exchange rates Additional
Slide 15: Interest and Tax Expense
Interest and Tax Expense H1 ‘11 H1 ‘10 Change Constant Currency % Interest Expense A$M 33.4 21.4 56% Tax Expense A$M 48.5 44.8 8% $12 million additional interest expense ~$8 million – interest on additional debt to fund acquisitions ~$4 million – higher interest rates due to refinancing of pri
Slide 16: Interim Dividend
Interim Dividend H1 ‘11 H1 ‘10 Interim Dividend A$0.24 A$0.24 Dividend franked to 28% Record Date 10 March 2011 Payment Date 24 March 2011 Dividend Reinvestment Plan remains suspended
Slide 17: Outlook
Outlook Offshore operations set to continue performing strongly Further significant synergy potential in USA and Europe Excellent growth platforms in USA and Europe Acquisition pipelines active in overseas markets War chest of ~$500 million for acquisitions Underlying growth drivers of d
Slide 18: Thank You
SONIC HEALTHCARE Thank You Sch ae a BE] + |