Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — FY2021 Earnings Presentation

21 slides from Sonic Healthcare's earnings presentation, Aug 23, 2021

  1. Slide 1: Financial and Operational Review

    Financial and Operational Review For the year ended 30 June 2021 Colin Goldschmidt CEO, Sonic Healthcare 23 August 2021

  2. 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

  3. Slide 3: Headlines

    Headlines  FY 2021 results  Revenue A$8.8 billion (28% growth)  EBITDA A$2.6 billion (81% growth)  Net profit A$1.3 billion (149% growth)  Balance sheet set for growth by acquisition  Gearing at record low level  Available liquidity ~A$1.5 billion  Progressive dividend strategy maintained 

  4. Slide 4: COVID-19

    COVID-19  Sonic’s COVID testing capability continues to play a crucial role in pandemic control  Sonic contributing essential healthcare services  ~138 million patients served globally in FY 2021  ~30 million COVID PCR tests performed from March 2020 to date in ~60 Sonic laboratories globally 

  5. Slide 5: Revenue

    Revenue Base business* COVID $9.0  FY 2021 base business revenue* $8.0  Up 6% on FY 2020  Up 4% on FY 2019 (pre-pandemic) $7.0  Expect ongoing growth of base business, despite pandemic – underlying growth drivers unchanged $6.0  Expect significant ongoing COVID testing revenue $5.0 into foresee

  6. Slide 6: Financial Summary

    Financial Summary A$M Actual Currency FY 2021 FY 2020 Growth Revenue 8,754 6,832 28% EBITDA 2,560 1,412 81% Net profit 1,315 528 149% * Gross operating cash flow: Net cash inflow from operating activities before Gross operating cash flow* 2,485 1,592 56% interest and tax (refer Cash Flow in Appendix

  7. Slide 7: FY 2022

    FY 2022  FY 2022 earnings guidance not provided due to COVID-related unpredictability  COVID testing ongoing, with Delta variant driving substantial recent increases in COVID volumes  Global base business increasingly resilient to impacts of pandemic waves – underlying healthcare growth drivers u

  8. Slide 8: Dividends

    Dividends A$ FY 2021 FY 2020 Growth Interim Dividend $0.36 $0.34 5.9% Final Dividend $0.55 $0.51 7.8% Total Dividends $0.91 $0.85 7.1%  Progressive dividend policy maintained  Final dividend franked to 65% (previously 30%)  Record Date 8 September 2021  Payment Date 22 September 2021  Dividend

  9. Slide 9: FY 2021 Revenue Split

    FY 2021 Revenue Split SCS/Other A$410M NZ 5% A$29M Imaging A$620M Belgium 7% A$187M USA 2% A$2,239M 25% Switzerland A$579M 7% Revenue in A$ millions UK & Ireland A$728M Total Revenue A$8,754 million (including A$3 8% million interest) SCS / Other = Sonic Clinical Services (IPN Medical Centres, Sonic

  10. Slide 10: USA

    USA  FY 2021 revenue  34% organic growth, constant currency  Base business growth 5%  Government grants (US$26 million in total) repaid in February 2021  Operations  High volume COVID PCR and serology tests in 12 laboratories across the country USA A$2,239M  COVID testing volumes declined thr

  11. Slide 11: Germany

    Germany  FY 2021 revenue  50% organic growth, constant currency  Base business growth 5%  No government subsidies received  Operations  Largest provider of COVID testing in Germany, performed in 30 Sonic laboratories nationwide  Participating in government testing programs, including for scho

  12. Slide 12: Australian Pathology

    Australian Pathology  FY 2021 revenue  28% organic growth  Base business growth 9%  No government subsidies (e.g. JobKeeper) received  Operations  Sonic is a leading provider of COVID testing in Australia  Federal Government contract to provide COVID testing for Australia’s aged care faciliti

  13. Slide 13: UK & Ireland

    UK & Ireland  FY 2021 UK revenue  62% organic growth, constant currency  Base business growth 9%  Operations  COVID testing ramped up through the year, volumes remain high  COVID PCR surge lab opened December 2020, augmenting volumes  Assisting NHS England to determine key COVID variants by g

  14. Slide 14: Switzerland

    Switzerland  FY 2021 revenue  22% organic growth, constant currency  Base business growth 8%  Operations Switzerland A$579M  Ongoing participation in COVID testing programs, including school testing 7%  Substantial additional COVID testing capacity established  Zurich central laboratory moder

  15. Slide 15: Belgium

    Belgium  FY 2021 revenue  30% organic growth, constant currency  Base business down 3%, recovering slowly Belgium  Operations A$187M 2%  Significant COVID testing volumes in H1, lower in H2, now increasing with Delta variant outbreak  Ongoing growth in molecular and genetics testing, including

  16. Slide 16: Sonic Imaging

    Sonic Imaging  FY 2021 revenue and earnings  19% revenue growth, including Epworth Medical Imaging (EMI, Melbourne)  15% organic revenue growth Imaging  24% EBITDA growth A$620M 7%  No government subsidies (e.g. JobKeeper) received  Operations  Moved to majority (80%) ownership of EMI, annual

  17. Slide 17: Sonic Clinical Services (SCS)

    Sonic Clinical Services (SCS)  FY 2021 revenue and earnings  Consultation volumes and revenue slightly down on prior year, pandemic related  Earnings maintained at prior year level SCS/Other A$410M  No government subsidies (e.g. JobKeeper) received 5%  Sonic Healthcare Vaccinations  SCS playin

  18. Slide 18: Capital Management

    Capital Management 30 June 30 June 2021 2020 Net interest-bearing debt A$M 940 2,022 Equity A$M 6,504 5,664  Gearing ratio = Net debt / Net debt + equity (covenant limit <55%) Gearing ratio % 12.5 26.1  Interest cover = EBITA / Net interest expense (covenant limit >3.25)  Debt cover = Net debt /

  19. Slide 19: Sustainability

    Sustainability  Leadership  Further strengthening global executive team to oversee sustainability initiatives  Appointments: Sustainability Manager/Director/Steering Committee  Environmental responsibility  Ongoing focus on emissions and energy reduction programs  Setting targets for renewable

  20. Slide 20: Outlook

    Outlook  Sonic making ongoing material contribution to the health of communities served  Providing essential healthcare services and critical national infrastructure in 7 countries  Leveraging long-term investments in people, equipment, facilities and supply chain for community benefit  Supporti

  21. Slide 21: Thank you

    Sy SONIC SY HEALTHCARE Thank you

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