Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — FY2005 Earnings Presentation
20 slides from Sonic Healthcare's earnings presentation, Aug 23, 2005
Slide 1: Financial and Operational Review
Financial and Operational Review Year to 30 June 2005 Dr Colin Goldschmidt CEO and Managing Director 23 August 2005
Slide 2: 2005 Summary
2005 Summary ¾ Sonic delivers record earnings result ¾ Sonic guidance (upgraded in Feb ’05) exceeded ¾ Strong group revenue growth ¾ Full-year dividend up by 20% ¾ CPL (USA) acquisition a major growth step for Sonic ¾ Sonic in strong position to drive shareholder value
Slide 3: 2005 Financial Highlights
2005 Financial Highlights Growth 2005 vs 2004 Revenue 33% EBITA 33% NPAT 34% Operating Cashflow 40% Core* EPS 21% EPS 31% Dividend (full-year) 20% *Core = Before amortisation of intangibles
Slide 4: 2005 Guidance Delivered
2005 Guidance Delivered Full Year 2005 Sonic Guidance Actuals $M $M Revenue 1,330 - 1,370 1,382 EBITA 245 - 260 261 Sonic 2005 guidance was upgraded in February 2005
Slide 5: Revenue 2005
Revenue 2005 2005 2004 Growth ($M) ($M) (%) Total Revenue 1,382.4 1,037.4 33.3% ¾ Acquisitions completed in FY 2005 include IPN, Endeavour Healthcare/Accord Pathology ¾ Strong organic revenue growth (excluding acquisitions) ~7% ¾ German laboratory (Schottdorf) delivered strong revenue growth
Slide 6: Revenue Growth 2006
Revenue Growth 2006 ¾ CPL acquisition (from October 2005) ¾ IPN (consolidated from 26 August 2004) ¾ Endeavour/Accord acquisition from November 2004 ¾ Sonic organic growth ¾ Possible new acquisitions
Slide 7: Earnings Growth
Earnings Growth Movement FY 2005 FY 2004 % EBITA ($M) 261.1 196.6 32.8% Core* NPAT ($M) 145.6 117.0 24.5% Core* EPS (cents) 52.6 43.4 21.2% NPAT ($M) 77.5 57.6 34.4% EPS (cents) 28.5 21.7 31.3% Cash Generation ($M) 218.3 156.3 39.6% *Core = Before Amortisation of Intangibles
Slide 8: Core Earnings per Share
Core Earnings per Share 60.0 50.0 40.0 Cents 30.0 per share 20.0 10.0 0.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Core EPS (cents) 8.0 9.5 11.8 16.7 21.7 27.5 33.3 37.8 43.4 52.6 Core EPS = Diluted Earnings per Share before Amortisation of Intangibles
Slide 9: 10 Years of Double-digit EPS Growth!
10 Years of Double-digit EPS Growth! SHL - Core Earning per Share Growth (%) 50% 42% 40% 30% 30% 27% 24% 21% 21% 19% 20% 14% 14% 15% 10% 0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Core EPS = Diluted Earnings per Share before Amortisation of Intangibles
Slide 10: Earnings Margins
Earnings Margins ¾ EBITA margin 18.9% ¾ EBITDA margin 22.5% ¾ Low margin acquisition of IPN (August 2004) has diluted Sonic’s margins in 2005 ¾ Excluding IPN, Sonic’s EBITA margin is 19.4%
Slide 11: 2006 Guidance
2006 Guidance 2005 Actuals 2006 Guidance Growth $M $M % Revenue 1,382 1,600 – 1,670 18.3% EBITA 261 300 – 320* 18.8% Growth calculated using mid-point of 2006 guidance Includes full year of IPN Includes CPL from October 2005 *Includes AIFRS impact of equity expense of $6.3 million Assumes
Slide 12: Final Dividend
Final Dividend 2005 2004 Change Interim Dividend $0.13 $0.10 30% Final Dividend $0.23 $0.20 15% Full Year Dividend $0.36 $0.30 20% ¾ Dividend fully franked at 30% ¾ Record Date 6 September 2005 ¾ Payment Date 19 September 2005 ¾ Dividend Reinvestment Plan remains suspended
Slide 13: Balance Sheet Summary
Balance Sheet Summary 30.6.05 30.6.04 Receivables (current) $M 144.9 145.6 Intangibles (net) $M 1,197.0 1,162.2 Total Interest-bearing Debt $M 657.6 641.3 Equity $M 882.6 847.8 Gearing (Net IB Debt / Equity) % 71 74 Net Interest-bearing debt / EBITDA X 2.01 2.62 Interest Cover (EBITDA / Net Interest
Slide 14: Pathology Operations
Pathology Operations ¾ Strong volume growth from larger entities Melbourne Pathology (Victoria) Sullivan Nicolaides Pathology (Queensland) Douglass Hanly Moir Pathology (New South Wales) Schottdorf Group (Germany) ¾ Melbourne Pathology New CEO, Mr David Pinkus (previous roles of Finance an
Slide 15: Radiology Operations
Radiology Operations ¾ Solid performances from Sonic’s large practices Queensland X-Ray SKG Radiology ¾ Sonic Imaging margin growth strong in 2005 ¾ SKG launches licensed MRI at Hollywood Hospital ¾ Queensland X-Ray – Greenslopes Hospital MRI now licensed ¾ Sonic radiology IT system (Apollo RIS)
Slide 16: UK Pathology - TDL
UK Pathology - TDL ¾ NHS outsourcing update Pathology outsourcing tenders delayed due to election and focus on radiology tenders and primary care outsourcing Pathology tenders expected later this year ¾ TDL performing well in Harley Street market ¾ TDL – UCLH joint venture progressing well ¾ Pro
Slide 17: German Pathology - Schottdorf
German Pathology - Schottdorf ¾ Schottdorf business achieved outstanding results for the year ¾ Strong volume growth and efficiencies ¾ Acquisition earnout of €8.1 million paid in full ¾ Evolving opportunities in German hospital pathology market
Slide 18: IPN
IPN ¾ Sonic holds 72% interest in IPN ¾ IPN results consolidated into Sonic from 26.8.04 ¾ IPN acquisition of Endeavour Healthcare Completed on 26.11.05 18 Medical Centres acquired (Sydney and Perth) Integration into IPN structure successful Loan of $8 million from Sonic to fund the acquisit
Slide 19: Future
Future ¾ Sonic Australian businesses in strong position Excellent pathology and radiology businesses Extensive infrastructure Outstanding relationships with medical profession ¾ Strong offshore growth prospects CPL a major new growth market TDL/Sonic UK set for extended growth path Schot
Slide 20: Thank you
SONIC HEALTHCARE Thank you S as Sy [HEALTHCARE