Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — FY2010 Earnings Presentation
19 slides from Sonic Healthcare's earnings presentation, Aug 24, 2010
Slide 1: Financial and Operational Review
Financial and Operational Review Year to 30 June 2010 Colin Goldschmidt CEO, Sonic Healthcare 24 August 2010
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: Financial Summary - Statutory
Financial Summary - Statutory FY 2010 FY 2009 Revenue A$M 2,995 3,014 EBITDA A$M 544 425 NPAT A$M 293 171 Operating cash flow A$M 429 430 Revised FY 2010 guidance achieved (NPAT A$290-295 million) FY 2010 – impacted by currency exchange rate movements FY 2009 – impacted by Non Recurring Items
Slide 4: Financial Summary - Operating
Financial Summary - Operating FY 2010 FY 2010 vs FY 2009 CONSTANT CURRENCY GROWTH Revenue A$M 3,259 8% EBITDA A$M 591 2% NPAT A$M 317 1% Adverse impacts on FY 2010 earnings growth NPAT ~A$18 million – Australian regulatory change impacts Queensland pathology – temporary loss of market share Lo
Slide 5: FY 2011 Guidance
FY 2011 Guidance NPAT growth range expanded FY 2011 Guidance Net profit after tax (NPAT) growth 5 - 15% Rationale for wider guidance range – Australian pathology FY 2011 guidance given May 2010 assumed earlier return to normal market growth rates Expect growth to return by November 2010 (anniv
Slide 6: Dividend
Dividend 2010 2009 Change Interim Dividend $0.24 $0.22 9.1% Final Dividend $0.35 $0.35 0.0% Full Year Dividends $0.59 $0.57 3.5% Dividend franked to 35% Record Date 14 September 2010 Payment Date 28 September 2010 Dividend Reinvestment Plan remains suspended
Slide 7: Operational Highlights
Operational Highlights Business expansion 4 synergistic pathology acquisitions in FY 2010 Prime Health synergistic acquisition by IPN Contract wins – BMI (60 UK hospitals), Irish cytology, Macquarie University Hospital Ongoing organic growth in all key markets Entry into Belgian laborato
Slide 8: Sonic Revenue Split
Sonic Revenue Split FY 2009 vs FY 2010 FY 2009 FY 2010 (constant FX) IPN IPN Medical Centres Medical Centres Radiology $182 6% Radiology $159 5% $358 $345 New Zealand 12% Pathology 11% Australian Australian $74 2% New Zealand Pathology Pathology Pathology $114 4% Belgium $901 $881 $45 1% 28% Switzer
Slide 9: Organic Revenue Growth
Organic Revenue Growth Organic Revenue Growth* Acquisitions excluded Australian pathology 2.3% USA 6.3% Europe 4.0% Radiology 3.5% * Constant currency basis
Slide 10: Pathology: Global Revenue Contribution
Pathology Global Revenue Contribution 2750 (42) 2700 150 2650 2600 (263) 2550 101 A$M 2500 2,708 2450 2400 2,499 2,445 2350 2300
Slide 11: Pathology: Global EBITDA Contribution
Pathology Global EBITDA Contribution 580 560 16 (24) 540 28 (14) 520 A$M 500 (48) 480 521 527 460 479 440
Slide 12: Australian Pathology: Growth Dynamics
Australian Pathology Growth Dynamics Sonic commands strong market position Clear market leader in revenue and profitability Resilient, premium brands Leading position in specialist and hospital markets Sonic growth 2.3% organic revenue growth FY 2010 vs market growth of <1% 4.2% organi
Slide 13: Australian Pathology: Regulatory Issues
Australian Pathology Regulatory Issues Medicare fee cuts Industry agreement (MOU) unilaterally terminated by Government 2% fee cut from July 2008 (A$180 million over 4 years) 5% fee cut from Nov 2009 (A$416 million over 4 years) Abolition of capped collection centre scheme (from 1 July 201
Slide 14: USA
USA Sustained strong performance from Sonic USA Revenue growth – 16.6%, organic growth 6.3% EBITDA growth – 19.1% Margin expansion – 50 basis points (follows >200 bps gain last year) Integration of acquisitions East Side (Rhode Island) integrating with Sunrise (NY operations) Piedmont
Slide 15: Germany
Germany Financial performance Organic revenue growth >3% Margin expansion of 20 bps (follows >100 bps expansion in FY 2009) Despite fee cuts in early 2009 Synergy gains on track Initial synergy target of €15 million p.a. ~70% achieved to date Synergy target expected to be exceeded Me
Slide 16: Sonic Imaging
Sonic Imaging Organic revenue growth 3.5% Earnings maintained Revenue and volume Medicare fee increase in Nov 2009 only applicable to bulk-billed items Strong growth in MRI and nuclear medicine Competition from bulk-billing public hospital and other providers Lower industry CT volumes
Slide 17: Sonic Debt Summary
Sonic Debt Summary Investment Grade Credit Metrics 30 Jun 10 31 Dec 09 30 Jun 09 Net interest-bearing debt A$M 1,501 1,149 1,198 Gearing ratio % 37.0 31.3 32.0 Interest cover X 9.4 9.7 6.5 Debt cover X 2.6 1.9 2.2 Long-term (7-10 years) US debt raising completed Jan 2010 – US$250 million Bank de
Slide 18: Outlook
Outlook Sonic Healthcare in strong position in key markets Australia, USA, Germany Strong growth and synergies in USA and Europe Critical mass, integration prospects, outstanding management teams Australian pathology market Normal growth trend will resume Underlying industry growth dri
Slide 19: Thank You
SONIC HEALTHCARE Thank You