Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — FY2018 Earnings Presentation
20 slides from Sonic Healthcare's earnings presentation, Aug 16, 2018
Slide 1: Financial and Operational Review
Financial and Operational Review For the year ended 30 June 2018 Colin Goldschmidt CEO, Sonic Healthcare 16 August 2018
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: Headlines
Headlines FY 2018 result in line with guidance – underlying EBITDA growth 6.4% (constant currency) Underlying EBITDA growth 8.3% to A$962 million (actual currency) Revenue growth 8.2% to A$5.5 billion Net profit growth 11.2% to A$476 million Final dividend up 6.5% to A$0.49 per share (full
Slide 4: FY 2018 Summary
FY 2018 Summary A$M Statutory FY 2018 FY 2017 Growth Revenue 5,541 5,122 8% Underlying EBITDA 962 889 8% Non-recurring items (acquisition/restructure costs) 14 20 EBITDA 948 869 9% Net profit including US net tax benefit 476 428 11% One-off non-cash US net tax benefit 20 - Net profit excluding US ne
Slide 5: FY 2019 Guidance
FY 2019 Guidance Guidance EBITDA growth 3-5% on underlying FY 2018 EBITDA of A$962 million (constant currency) Equivalent to EBITDA growth ~5-7% using current exchange rates Interest expense to increase by ~4% (constant currency) Effective tax rate ~25% Key guidance considerations Inco
Slide 6: Dividends
Dividends A$ FY 2018 FY 2017 Growth Interim Dividend $0.32 $0.31 3.2% Final Dividend $0.49 $0.46 6.5% Total Dividends $0.81 $0.77 5.2% Final dividend franked to 30% (previous dividend 20%) Record Date 13 September 2018 Payment Date 27 September 2018 Dividend Reinvestment Plan suspended Sonic
Slide 7: Full-year Dividend History
Full-year Dividend History $0.90 $0.81 $0.80 $0.70 $0.60 $0.50 A$ $0.40 $0.30 $0.20 $0.10 $0.00 Sonic Healthcare | Full-year Results FY 2018 7
Slide 8: FY 2018 Revenue Split
FY 2018 Revenue Split SCS & Other New Zealand $439 $28 Imaging 8% <1% $473 9% Australia Belgium $1,403 $142 25% 3% UK & Ireland $383 7% Switzerland $390 7% Germany $1,149 USA 21% $1,131 20% SCS & Other = Sonic Clinical Services (IPN Medical Centres, Sonic HealthPlus, other clinical service entities)
Slide 9: Australian Pathology
Australian Pathology Financials Organic revenue growth ~6% Earnings growth and margin accretion ongoing Collection centre costs stabilised Disciplined cost management National Bowel Cancer Screening contract Australia Launched 2 January 2018, tracking to plan A$1,403M 25% Annual reve
Slide 10: Germany
Germany Revenue 12% revenue growth (constant currency) 3% organic revenue growth, normalised for working days, after impact of April 2018 EBM (statutory insurance) fee changes Minor volume growth volatility following regulatory changes to EBM referrer “bonus” from April 2018 EBM billing re
Slide 11: USA
USA Revenue 5% revenue growth (constant currency) Organic revenue growth ~2%, after impact of PAMA fee cuts from January 2018 Acquisitions and hospital laboratory joint ventures New ProMedica joint venture signed, to commence September 2018 Existing joint ventures performing strongly F
Slide 12: Switzerland
Switzerland Revenue 5% revenue growth (constant currency) Operations Ongoing strong performance Zug Cantonal Hospital contract won by Medisupport, commencing 1 January 2019 Small acquisition completed in Zurich (January 2018), fully integrated into Medica Regulatory environment stable
Slide 13: UK and Ireland
UK and Ireland Revenue 8% organic revenue growth (constant currency), including Barnet / Chase Farm hospital contract (commenced October 2017) Operations UK & Ireland A$383M Relocation to new Halo building completed 7% Operational optimisation ongoing Further laboratory outsourcing oppor
Slide 14: Belgium
Belgium Revenue 4% revenue growth (constant currency), including small fee increase January 2018 Operations Strong growth in genetics and molecular testing Belgium A$142M Focus on efficiencies and integration of recent acquisitions 3% Regulatory environment stable Sonic Healthcare | Full
Slide 15: Sonic Imaging
Sonic Imaging Financials 7% organic revenue growth Strong earnings and margin growth Operations Imaging Expansion via greenfield and new modality opportunities A$473M 9% Ongoing efficiency initiatives Investment in technologies to improve workflow and patient experience Regulatory en
Slide 16: Sonic Clinical Services (SCS)
Sonic Clinical Services (SCS) SCS includes medical centres (IPN) and occupational health (Sonic HealthPlus) Australia’s largest primary care and occupational health provider 238 centres and ~2,300 GPs Financials SCS & Other 3% revenue growth A$439M 8% Modest earnings growth for period
Slide 17: Capital Management
Capital Management 30 June 30 June 2018 2017 Net interest-bearing debt A$M 2,483 2,435 Equity A$M 4,283 3,926 Gearing ratio % 36.7 38.3 Interest cover X 10.1 10.8 Debt cover X 2.5 2.7 Increase in debt of A$48 million (A$112 increase due to exchange rate changes, offset by A$64 million of net cash
Slide 18: Corporate Responsibility
Corporate Responsibility Caring for our people Core Values, culture, diversity, career development Improving healthcare services for communities in need Catalyst Program: laboratory/radiology equipment, supplies and training in Africa Infrastructure designed to minimise environmental impac
Slide 19: Outlook
Outlook Continued strong organic growth Stable regulatory environments Geographical diversification provides growth opportunities and risk mitigation Pipeline of acquisition, joint venture and contract opportunities Strong balance sheet with headroom for expansion Continuation of progres
Slide 20: Thank you
@ SONIC sy | HEALTHCARE Thank you <== i * =— ZARB