Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — Shareholder Meeting (November 2017)
36 slides from Sonic Healthcare's shareholder meeting presentation, Nov 22, 2017
Slide 1: Annual General Meeting
Annual General Meeting 22 November 2017
Slide 2: Agenda
Agenda Sonic Healthcare Annual General Meeting 2017 - 2017 is Sonic Healthcare’s 30th anniversary! - Sonic’s position today is strong and stable, with growth ahead - Sonic’s service excellence and Medical Leadership continue to drive the company’s success PART 1 Review of FY 2017 PART 2 The Sonic Di
Slide 3: FY 2017 Headlines
FY 2017 Headlines Financials - FY 2017 result in line with guidance - Headline results (underlying, constant currency) - EBITDA growth 5.3% - Revenue growth 5.8% to A$5.3 billion - Net profit growth 4.4% - Dividends - Final dividend up 4.5% to A$0.46 per share - Full-year dividend up 4.1% to A$0.77
Slide 4: FY 2017 Summary
FY 2017 Summary Financials STATUTORY UNDERLYING CONSTANT CURRENCY A$ M FY 2017 FY 2016 Growth FY 2017 FY 2016 Growth Revenue 5,122 5,052 1% 5,308 5,018 6% EBITDA 869 880 (1)% 923 876 5% Net profit 428 451 (5)% 459 440 4% Earnings per share (A$) 1.02 1.09 (7)% 1.10 1.07 3% - Statutory revenue and ear
Slide 5: FY 2017 Summary (cont.)
FY 2017 Summary (cont.) Financials - Underlying revenue growth 6% - Laboratory division (global) 6%, organic ~4% - Imaging division 5%, organic ~4% - Underlying earnings growth - Laboratory division (global) 8% EBITDA growth, margin accretion 25 basis points - Imaging division 7% EBITDA growth, marg
Slide 6: FY 2018 Guidance
FY 2018 Guidance Financials - FY 2018 guidance confirmed after 4 months’ trading - Guidance as issued 16 August 2017 - EBITDA - 6-8% growth on underlying FY 2017 EBITDA of A$889 million (constant currency FY 2017 FX rates) - No regulatory changes assumed, including proposed US Medicare fees (potenti
Slide 7: FY 2017 Dividends
FY 2017 Dividends Financials A$ FY 2017 FY 2016 Growth Interim Dividend $0.31 $0.30 3.3% - Progressive dividend policy maintained Final Dividend $0.46 $0.44 4.5% - Dividends franked to 20% Total Dividends $0.77 $0.74 4.1% - Dividend Reinvestment Plan (DRP) operated for both dividends - Shareholders
Slide 8: Full-year Dividend History
Full-year Dividend History Financials $0.80 $0.77 $0.70 $0.60 $0.50 A$ $0.40 $0.30 $0.20 $0.10 $0.02 $0.00 Year Sonic Healthcare | 2017 Annual General Meeting
Slide 9: Revenue History
Revenue History Financials A$5.1 billion 6,000 5,000 4,000 A$ M 3,000 2,000 A$14 million 1,000 - Financial Year Sonic Healthcare | 2017 Annual General Meeting
Slide 10: Revenue History
Revenue History Global Business A$5.1 billion 6,000 5,000 4,000 International Australia 58% 42% A$ M 3,000 2,000 A$14 million FY 2017 1,000 - Australia International Financial Year Sonic Healthcare | 2017 Annual General Meeting
Slide 11: FY 2017 Revenue Split
FY 2017 Revenue Split Global Business SCS & Other Group revenue FY 2017 $423 New Zealand 8% A$5.122 billion $25 Imaging <1% $442 9% Australia Belgium $1,320 $127 2% 26% UK & Ireland $342 7% Switzerland $375 7% USA $1,106 Germany 22% $959 19% SCS & Other = Sonic Clinical Services (IPN Medical Centres
Slide 12: International Expansion
International Expansion Global Business 1987 Australia Completed January 2017 1999 New Zealand 1 Completed July 2017 2 3 2002 United Kingdom 2004 Germany 2005 United States Completed January 2017 2007 Switzerland 2010 Belgium Ireland US HOSPITAL LABORATORY JOINT VENTURES 1. Western Connecticut Healt
Slide 13: Global Perspective
Global Perspective Global Business Laboratory medicine accounts for 83% of Sonic’s business globally Sonic operates businesses in 8 countries Sonic Healthcare | 2017 Annual General Meeting
Slide 14: Global Perspective
Global Perspective Global Business Sonic is the market leader in laboratory medicine in 4 countries of operation Sonic Healthcare | 2017 Annual General Meeting
Slide 15: The Sonic Difference
The Sonic Difference People, Culture & Medical Excellence
Slide 16: Business Strategy
Business Strategy The Sonic Difference - Consolidation of fragmented medical laboratory markets - Synergistic acquisitions in suitable markets/countries - Aim to be Top-3 player in each market - Strong organic growth to leverage embedded infrastructure - Synergy capture - Economies of scale, reduce
Slide 17: Culture / Ethos
Culture / Ethos The Sonic Difference - Focus on highest quality healthcare services – and the people who deliver them – financial success will follow - Medical Leadership - A deep understanding of doctors and the medical profession - Business decisions are made from a medical/doctor/patient perspect
Slide 18: Culture / Ethos
Culture / Ethos The Sonic Difference Medical Leadership is the dominant force behind Sonic’s success and continues to strengthen as the company grows Sonic Healthcare | 2017 Annual General Meeting
Slide 19: Culture vs Strategy
Culture vs Strategy The Sonic Difference - Sonic Healthcare is a people business - Company culture and ethos resonate strongly with Sonic’s people - Business strategy provides the framework and company direction Company Culture/Ethos Business Strategy - Focus on highest quality healthcare services –
Slide 20: Commitment to Patients
Commitment to Patients The Sonic Difference Patient consultation - Our unit of business - The reason for our existence - Involves doctor, patient and clinical need Sonic’s business – what we do and why - We service doctors, patients and clinical needs - We provide essential healthcare services - We
Slide 21: Commitment to Patients
Commitment to Patients The Sonic Difference Patient Consultations More than 1 billion consultations since 1999 120 108m 100 80 Millions 60 Imaging 40 GP Laboratory 20 3m 0 Sonic Healthcare | 2017 Annual General Meeting
Slide 22: 108 million patient consultations in FY 2017
108 million patient consultations in FY 2017 The Sonic Difference Our principal commitment is to patients Sonic Healthcare | 2017 Annual General Meeting
Slide 23: Commitment to Operational Excellence
Commitment to Operational Excellence The Sonic Difference Bioscientia - Germany - One of Sonic’s largest laboratory companies - State-of-the-art newly expanded central laboratory in Ingelheim - 1,600 staff, 53 pathologists, 72 PhDs, 7 geneticists - Servicing 350 hospitals - 50,000 patient consultati
Slide 24: Commitment to Operational Excellence
Commitment to Operational Excellence The Sonic Difference Dianalabs – Sion, Switzerland - One of Sonic’s smallest laboratories - A division of the Medisupport Group - Located in the Rhone Valley, canton of Valais - 19 staff, 250 patient consultations per day - Routine and fertility testing only, oth
Slide 25: Commitment to Operational Excellence
Commitment to Operational Excellence The Sonic Difference - Sonic operates >250 medical laboratories worldwide - ~400,000 laboratory patient consultations per day Bioscientia Ingelheim, Germany Dianalabs Sion, Switzerland - Regardless of size, both labs deliver high-quality essential services to the
Slide 26: Commitment to Operational Excellence
Commitment to Operational Excellence The Sonic Difference National Bowel Cancer Screening Program - Sonic wins exclusive Australian Government contract, after competitive tender process - 3-year contract, with possible extensions, commencing January 2018 - Sonic will provide end-to-end service – bui
Slide 27: Commitment to Staff
Commitment to Staff The Sonic Difference Employees Country 30 June 2017 - Sonic employs >33,000 people who are committed to operational excellence Australia 16,197 USA 6,925 Germany 6,923 UK 1,812 Switzerland 1,029 Belgium 497 New Zealand 183 Ireland 70 TOTAL 33,636 Sonic Healthcare | 2017 Annual Ge
Slide 28: Commitment to Staff
Commitment to Staff The Sonic Difference - Sonic employs >33,000 people who are Employees by Gender committed to operational excellence - Women comprise 75% of the workforce and 53% 2017 2016 2015 of senior leadership positions Women in Senior 53% 51% 50% Leadership Positions Women within the 75% 76
Slide 29: Commitment to Staff
Commitment to Staff The Sonic Difference - Sonic employs >33,000 people who are Employees by Age Bracket committed to operational excellence - Women comprise 75% of the workforce and 52% 25% of senior leadership positions 20% - Employee numbers are evenly distributed across age groups between the ag
Slide 30: Commitment to Staff
Commitment to Staff The Sonic Difference - Sonic employs >33,000 people who are Employee turnover in committed to operational excellence global workforce - Women comprise 75% of the workforce and 52% of senior leadership positions 2017 2016 2015 - Employee numbers are evenly distributed across all a
Slide 31: Commitment to Education
Commitment to Education The Sonic Difference - Teaching is deeply embedded within Sonic’s Medical Leadership culture - A proud history of direct involvement with medical schools, educating the next generation of medical professionals - In 2017 alone, 650 students, registrars and Fellows received for
Slide 32: Internal Culture, Learning & Development
Internal Culture, Learning & Development The Sonic Difference - SonicConnect established in 2004 - To propagate Sonic’s global ethos and culture - Medical Leadership - Emotional intelligence in the workplace - Focused on Sonic’s culture and the promotion of a positive work environment - SonicConnect
Slide 33: Commitment to Others
Commitment to Others The Sonic Difference The Catalyst Program - The cornerstone of Sonic’s philanthropic activities - Sonic’s support of HEAL Africa is now in its 10th year, operating in the Democratic Republic of the Congo, Ethiopia and South Sudan - Expanding into other regions - East Timor - sup
Slide 34: Corporate Responsibility Report 2017
Corporate Responsibility Report 2017 - Captures the essence of Sonic Healthcare - Profiles Sonic’s ESG (environmental, social and governance) and ethical investment credentials - Documents the attributes responsible for Sonic’s inclusion in the FTSE4Good Index - Hard copy available today or view the
Slide 35: Conclusion
Conclusion Sonic Healthcare Annual General Meeting 2017 - Over 30 years, Sonic has cemented and enhanced its commitment to Medical Leadership - Medical Leadership resonates strongly within the healthcare sector - Clinicians – the model is favoured because it insists on optimal patient care - Staff –
Slide 36: Thank you.
Thank you. SONIC 2) HEALTHCARE Pe eS + eS BP Quality is in our DNA.
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