Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — Shareholder Meeting (November 2011)
17 slides from Sonic Healthcare's shareholder meeting presentation, Nov 18, 2011
Slide 1: Annual General Meeting
Annual General Meeting 18 November 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 FY '11
Summary FY ‘11 Financial summary Revenue up 10% (constant currency) EBITDA up 11% (constant currency) NPAT up 6% (constant currency) – guidance met Full-year dividend maintained at 59 cents per share, 28% franked Margin expansion in major divisions Germany up 120 bps, USA up 60 bps R
Slide 4: FY '12 Guidance
FY ‘12 Guidance EBITDA growth of 10-15% Interest expense to increase by ~30% Due to increased margins and growth in debt since July 2010 Expect interest expense to decline in FY ‘13 Effective tax rate ~26% Reflecting expansion in countries with higher tax rates Based on constant curren
Slide 5: Trading Update
Trading Update 4 Months through Oct 2011 EBITDA growth tracking within guidance range Strong revenue growth in Australian pathology (~8%) USA organic revenue growth soft (~2%), higher than competitors German organic revenue growth (~5%), exceeding budget
Slide 6: Regulatory Update
Regulatory Update USA Austerity proposals creating uncertainty in financial markets Existing funding regime – 0.7% Medicare fee increase from 1 Jan 2012 Most likely austerity measure – 2% Medicare fee cut from 2013 US Medicare revenue <5% of Sonic’s total revenue Potential upside of addi
Slide 7: Financial Summary FY '11
Financial Summary FY ’11 Currency Translation Effects FY ‘11 GROWTH FY ‘11 CURRENCY FY ‘11 v FY ‘10 TRANSLATION A$M Constant Currency * Constant Currency * Statutory EFFECTS Revenue 3,287 10% 3,096 (191) EBITDA 605 11% 570 (35) NPAT 311 6% 295 (16) EPS – 79.7 cents (constant currency), up 6% on FY
Slide 8: Revenue Split
Revenue Split FY ‘11 IPN $221 Radiology 7% $362 Australia New Zealand 12% $65 2% $923 Switzerland 30% $71 2% Belgium $92 3% UK & Ireland $94 3% Germany $541 USA 18% $721 23% Statutory revenue in A$ M
Slide 9: Sonic Healthcare Model
Sonic Healthcare Model Building a strong and successful company Enhancing value for stakeholders Sonic people Core Values Customer services Sonic Foundation Principles Shareholder value EPS and ROIC EPS – Earnings per share ROIC – Return on invested capital (return after tax)
Slide 10: Sonic People
Sonic People Core Values Our Values Commit to Service Excellence To wilingly serve a those with whem we deal with unsurpasted excellence. Treat each other with Respect & Honesty To grow a workplace where trust, team spirit, and equity are an integral part of everything we do. Demonstrate Responsibil
Slide 11: Customer Services
Customer Services Sonic Foundation Principles
Slide 12: Shareholder Value
Shareholder Value Business Model Model designed to drive EPS and ROIC accretion Proven in Australia over past two decades Well-advanced in USA and Europe Phase 1 Initial acquisition in new market EPS accretion Low ROIC Phase 2 Add synergistic acquisitions EPS accretion Initiall
Slide 13: Return on Invested Capital (ROIC) - Australian Pathology
Return on Invested Capital (ROIC) Australian Pathology 20.0% 4 18.0% 5 16.0% 1 ROIC 14.0% 1 – SGS Medical Group, Hi-Tech acquisitions 2 2 – SGS minority interests acquisitions 3 3 – Clinipath, Cairns Pathology acquisitions 12.0% 4 – Regulatory impacts (fee cuts, collection centres) 5 – Forecast FY ‘
Slide 14: Return on Invested Capital (ROIC) - USA and Germany
Return on Invested Capital (ROIC) USA and Germany Critical mass and significant infrastructure platforms established in both markets (Phase 1) Synergistic bolt-on acquisitions (Phase 2) Current focus on organic growth, synergy capture, margin expansion and ROIC accretion (Phase 3) Initial RO
Slide 15: Sonic's Business Model
Sonic’s Business Model Strategic Clarity Roll-up of fragmented markets Margin expansion via synergies, rationalisation and economies of scale Ongoing organic growth, with marginal profit gains Consistency Sonic’s pathology model essentially unchanged over 15 years Model successfully ro
Slide 16: Outlook
Outlook Underlying company strength – all divisions performing well Australian pathology – strong market position / business turnaround USA – margin expansion / ROIC accretion Europe – margin expansion / ROIC accretion Imaging – improving performance despite tough market A$630 million cr
Slide 17: Thank You
SONIC HEALTHCARE Thank You aa oe eS + = * = =—= 7 INS
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