Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — Shareholder Meeting (November 2014)
32 slides from Sonic Healthcare's shareholder meeting presentation, Nov 20, 2014
Slide 1: Annual General Meeting 20 November 2014
For personal use only Sonic Healthcare Annual General Meeting 20 November 2014
Slide 2: Forward-looking statements
For personal use only 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 pla
Slide 3: Headlines
Headlines For personal use only ‣ Double digit revenue and earnings growth in FY ‘14 ‣ FY ‘14 total dividend up by 8.1% ‣ Major contracts in UK and Canada
Slide 4: Summary FY '14
Summary FY ‘14 For personal use only Growth Statutory Constant Currency Revenue 12.3% 4.8% EBITDA 13.3% 5.4% Net profit 14.9% 6.5% Earnings per share 13.3% 5.0% ‣ Financial strength ‣ Double-digit revenue and earnings growth ‣ Margin accretion in each of Pathology (ex-Labco Germany acquisition), Rad
Slide 5: Financial Summary FY '14
Financial Summary FY ‘14 For personal use only FY ‘14 FY ‘13 Growth Revenue (A$M) 3,913 3,484 12.3% EBITDA (A$M) 733 647 13.3% Net profit (A$M) 385 335 14.9% Earnings per share (cents) 95.5 84.3 13.3%
Slide 6: Annual Revenue
Annual Revenue For personal use only 4,000 3,500 3,000 2,500 A$ M 2,000 1,500 1,000 500 - 1993 2014 Revenue (A$ million) 33 3,913
Slide 7: Revenue Split FY '14
Revenue Split FY ‘14 For personal use only IPN 9% Imaging 11% Laboratory Medicine Pathology 80%
Slide 8: Revenue Split FY '14
Revenue Split FY ‘14 For personal use only Australia 49% International 51%
Slide 9: Revenue Split FY '14
Revenue Split FY ‘14 For personal use only IPN $349 New Zealand 9% $41 1% Imaging $415 Australia Switzerland 11% $1,131 $100 2% 29% Belgium $107 2% UK & Ireland $193 5% USA Germany $830 $744 21% 19% Statutory revenue in A$ million Blue wedges = Laboratory medicine / pathology Green wedges = Imaging
Slide 10: Dividends
Dividends For personal use only A$ FY ‘14 FY ‘13 Growth Interim Dividend $0.27 $0.25 8.0% Final Dividend $0.40 $0.37 8.1% Total Dividends $0.67 $0.62 8.1% ‣ Final dividend franked to 55% (previously 45%) ‣ Paid 23 September 2014
Slide 11: Dividend History
Dividend History Progressive Dividend Policy For personal use only $0.70 $0.65 $0.60 $0.55 $0.50 $0.45 $0.40 Dividends declared $0.35 per share $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- Financial year
Slide 12: Trading Update
Trading Update October YTD For personal use only ‣ Strong performance YTD in Germany, UK, Switzerland, IPN, Imaging ‣ Belgium – now cycled through November ‘13 fee cut ‣ Australian pathology ‣ Low market volume growth in Q1 FY ’15 (post-Federal Budget announcement), recovery in October ‣ Increasing
Slide 13: Earnings Guidance FY '15
Earnings Guidance FY ‘15 For personal use only ‣ Original FY ‘15 guidance: EBITDA growth of approximately 5% ‣ Revised FY ‘15 guidance: EBITDA growth of 2 – 4% ‣ EBITDA growth strongly weighted to H2 (flat in H1) ‣ Australian pathology – volume growth returns to trend levels in Q2 ‣ Australian patho
Slide 14: Growth Opportunities
Growth Opportunities For personal use only ‣ Sonic’s Medical Leadership culture provides competitive advantage in major growth areas ‣ Organic growth ‣ Market growth and market share gains ‣ Market growth long-term trend ~5% ‣ Market share gains driven by culture, high quality service and innovation
Slide 15: UK Joint Venture
UK Joint Venture For personal use only ‣ JV with University College London Hospital/Royal Free ‣ Contracts signed 30 July 2014, commencement early 2015 ‣ 51% Sonic ownership ‣ Incremental revenue ~£50 million in first full year ‣ Earnings accretive, margin dilutive ‣ Chair of JV board: Lord Carter o
Slide 16: Halo Building
For personal use only Halo Building New central London hub lab facility
Slide 17: New Hub Lab Central London
New Hub Lab Central London For personal use only
Slide 18: Canada map
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Slide 19: Alberta, Canada Laboratory Services Contract
Alberta, Canada Laboratory Services Contract For personal use only ‣ Sonic selected as exclusive preferred provider ‣ Laboratory services in the Edmonton area ‣ Option for Alberta Health Services to extend contract into Northern and Central Alberta ‣ Long-term, significant, strategic opportunity ‣ 1
Slide 20: Alberta
For personal use only Alberta ‣ Area: 82% of NSW ‣ ~1,200 Km from north to south ‣ 4 million people ‣ Capital: Edmonton (pop. 1.2 million)
Slide 21: Sonic Innovations
For personal use only Sonic Innovations
Slide 22: Sonic Innovations
Sonic Innovations For personal use only ‣ Sonic continues to pioneer innovations to optimise its operations and services ‣ Laboratory Medicine/Pathology ‣ Radiology ‣ Primary Care ‣ Occupational health ‣ Healthcare service delivery has changed in the digital age ‣ Enhancing service provision to clin
Slide 23: Why Innovate?
Why Innovate? For personal use only ‣ Innovation drives revenue growth ‣ Service/product differentiation ‣ Reinforces market leadership and brand ‣ Creates strong bonds with customers (clinicians, hospitals, patients) ‣ Innovation fosters operational efficiency ‣ IT innovations crucial for optimisin
Slide 24: Sonic Innovations: Examples of recent innovations
Sonic Innovations For personal use only Examples of recent Sonic innovations…
Slide 25: Sonic Dx Mobile Results App
Sonic Dx Mobile Results App: Sonic Healthcare Australia For personal use only
Slide 26: Sonic Dx
Sonic Dx For personal use only ‣ Allows doctors to access patient results using mobile devices ‣ Secure ‣ Intuitive, easy to use ‣ Strong positive feedback from GPs and specialists ‣ Feature-rich app ‣ Rapid access of lab test results ‣ Cumulative results and graphing ‣ Creation of watch lists and s
Slide 27: Sonic Pathology Handbook
Sonic Pathology Handbook Sonic Healthcare Australia For personal use only A Seminal Laboratory Manual for Clinicians
Slide 28: Sonic Pathology Handbook
Sonic Pathology Handbook For personal use only ‣ Provides doctors with a tool to enhance clinical practice ‣ 800 topics, ~1,000 pages ‣ First of its kind in Australia ‣ Sonic’s commitment to teaching and academic excellence ‣ Of great practical use in clinical practice ‣ Received with critical accla
Slide 29: GLP Track System
GLP Track System A Global Lab Industry Game Changer For personal use only
Slide 30: GLP Track System
GLP Track System For personal use only ‣ Total Laboratory Automation system ‣ Single-tube transport with intelligent ‘cars’ ‣ Modular interfaces to different lab instruments ‣ Fully automated specimen archive system ‣ Integrates workflow and lab management systems ‣ Patented technology ‣ Implementat
Slide 31: Sonic Healthcare Today
Sonic Healthcare Today For personal use only ‣ World’s third-largest medical diagnostics company ‣ Market leader in Australia, Germany, UK ‣ 28,000 employees ‣ Attractive and growing global healthcare markets ‣ Proven business model ‣ Successful consolidator of fragmented markets ‣ Competitive diffe
Slide 32: Thank you
For personal use only Thank you
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