Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — H1 FY2019 Earnings Presentation

19 slides from Sonic Healthcare's earnings presentation, Feb 20, 2019

  1. Slide 1: Financial and Operational Review

    Financial and Operational Review For the half year ended 31 December 2018

  2. 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

  3. Slide 3: Headlines

    Headlines  Guidance  On track to achieve full-year FY 2019 guidance after 7 months trading  Guidance now upgraded to include Aurora acquisition  H1 FY 2019 results  Revenue growth 9%  Organic revenue growth 4.5% constant currency  Underlying EBITDA growth: 7% actual currency, 3.4% constant cu

  4. Slide 4: H1 FY 2019 Summary

    H1 FY 2019 Summary A$M Actual Currency H1 FY 2019 H1 FY 2018 Growth Revenue 2,901 2,669¹ 9% EBITDA (underlying) 485 451 7% EBITDA 471 441¹ 7% Net profit 223 209² 7% Cash generated from operations 369 352 5% EPS (cents) 51.9 49.4² 5%  Revenue and earnings  Underlying EBITDA growth 3.4% (constant cu

  5. Slide 5: FY 2019 Guidance

    FY 2019 Guidance  FY 2019 guidance (pre-Aurora Diagnostics acquisition)  EBITDA growth 3-5% on underlying FY 2018 EBITDA of A$962 million (constant currency)  Interest expense to increase by ~4% (constant currency)  Effective tax rate ~25%  On track to achieve original guidance after 7 months 

  6. Slide 6: Dividends

    Dividends A$ H1 FY 2019 H1 FY 2018 Growth Interim Dividend 0.33 0.32 3.1%  Interim dividend franked to 20%  Record Date: 11 March 2019  Payment Date: 26 March 2019  Dividend Reinvestment Plan suspended Sonic Healthcare | Interim Results H1 FY 2019 6

  7. Slide 7: H1 FY 2019 Revenue Split

    H1 FY 2019 Revenue Split SCS & Other New Zealand $217 $17 7% Imaging 1% $247 Belgium 9% Australia $71 $717 2% 25% Switzerland $206 7% UK & Ireland $208 7% USA $617 21% Germany $599 21% SCS & Other = Sonic Clinical Services (IPN Medical Centres, Sonic HealthPlus, other clinical service entities), GLP

  8. Slide 8: Australian Pathology

    Australian Pathology  Revenue  6% organic growth  National Bowel Cancer Screening contract contributed to growth  Earnings  Earnings growth and margin accretion ongoing  Collection centre costs stabilising Australia A$717M  Operations 25%  National roll-out of Sonic’s total lab automation sy

  9. Slide 9: USA

    USA  Revenue  Revenue growth 6% (constant currency)  Organic revenue growth 8% (constant currency), boosted by hospital laboratory joint ventures  Revenue reduced by ~US$9 million due to contribution of Midwest business into 49% owned ProMedica joint venture (effective 1 September 2018)  PAMA M

  10. Slide 10: USA – Aurora Diagnostics Acquisition

    USA – Aurora Diagnostics Acquisition  Acquisition completed 30 January 2019  Purchase price US$540 million, annual revenue US$310 million  Financially attractive, EPS accretive acquisition  Aurora is one of the leading anatomical pathology providers in the USA  Operates 32 pathology practices w

  11. Slide 11: Germany

    Germany  Revenue  Revenue growth 3% (constant currency)  Flat organic revenue growth (constant currency), impacted by European heat wave and regulatory changes  Operations  Wide range of synergy activities under way, including laboratory mergers  Pathology Trier acquired July 2018, revenue ~€2

  12. Slide 12: UK and Ireland

    UK and Ireland  Revenue  Organic revenue growth 9% (constant currency)  Revenue enhanced by Barnet / Chase Farm hospital laboratory contract (commenced October 2017)  Strong growth in private market (non-National Health Service)  Operations UK & Ireland  Barnet / Chase Farm integration under w

  13. Slide 13: Switzerland

    Switzerland  Revenue  Organic revenue growth 5% (constant currency)  Operations Switzerland A$206M  Ongoing strong performance 7%  Zug Cantonal Hospital contract successfully transitioned and operations commenced  Regulatory environment stable Sonic Healthcare | Interim Results H1 FY 2019 13

  14. Slide 14: Belgium

    Belgium  Revenue  Organic revenue growth flat (constant currency)  Growth impacted by European heat wave  Operations Belgium A$71M  Stable, consistent performance 2%  Regulatory update  Indexation fee increase in January 2018 and January 2019 equivalent to ~1% increase in total revenue per ye

  15. Slide 15: Sonic Imaging

    Sonic Imaging  Financials  6% organic revenue growth  Moderate earnings growth  Operations Imaging  Continued benefits from investments in equipment and greenfield sites A$247M 9%  Ongoing drive to leverage national infrastructure to achieve synergies  Strong culture of Medical Leadership and

  16. 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  240 centres and ~2,350 GPs  Financials SCS & Other  Flat revenue growth resulting in minor earnings decline A$217M 7%

  17. Slide 17: Capital Management

    Capital Management 31 December 2018 30 June 2018 Net interest-bearing debt A$M 2,076 2,483 Equity A$M 5,001 4,283 Gearing ratio % 29.3 36.7 Interest cover X 10.0 10.1 Debt cover X 2.0 2.5  A$600 million institutional equity placement completed December 2018 to part-fund Aurora acquisition (closed i

  18. Slide 18: Outlook

    Outlook  Company well set for ongoing strong growth  Rich pipeline of acquisitions, joint ventures and contracts ahead  Strong balance sheet with headroom for expansion  Geographical diversification provides growth opportunities and risk mitigation  Stable and dynamic global management teams 

  19. Slide 19: Thank you

    @ SONIC sy | HEALTHCARE Thank you Seek

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