Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — Shareholder Meeting (November 2020)

18 slides from Sonic Healthcare's shareholder meeting presentation, Nov 12, 2020

  1. Slide 1: Annual General Meeting

    Annual General Meeting 12 November 2020 Dr Colin Goldschmidt CEO Sonic Healthcare Limited

  2. Slide 2: Forward-looking statements disclaimer

    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 forward-looking statements,

  3. Slide 3: Sonic Healthcare and COVID-19

    Sonic Healthcare and COVID-19  Calendar 2020 – the most challenging year in Sonic’s 33-year history  Sonic is a global medical laboratory company – occupying a pivotal role in the COVID-19 pandemic  Sonic has performed over 11 million COVID-19 PCR tests globally to date  The company moved from a

  4. Slide 4: Sonic's Pandemic Timeline

    Sonic’s Pandemic Timeline  January/February 2020  Sonic leaders planning possible pandemic response Market Updates  Staff safety protocols, testing methods, supply chain issues 19 February 2020  March/April/May 2020 Release of results for H1 FY 2020 Tracking in line with FY 2020 guidance  Base

  5. Slide 5: COVID-19 Testing

    COVID-19 Testing  COVID PCR test  The gold standard for diagnosis – identifies viral genetic code  Sonic conducting high-volume PCR testing in >50 separate Sonic laboratories globally  Using a range of PCR testing methods  COVID Antigen test  Faster, cheaper – identifies viral surface protein

  6. Slide 6: Frontline Work

    Frontline Work  Sonic’s businesses have remained fully operational throughout pandemic  Providing essential clinical and diagnostic services  Handling of COVID specimens  Sonic labs handling thousands of COVID swabs every day  Meticulous COVID-specific safety measures in place  Collectors, cou

  7. Slide 7: Government Collaboration

    Government Collaboration  Sonic as a major laboratory player / COVID testing laboratory  Market leader in Australia, Germany, UK and Switzerland  Major player in the USA (#3) and Belgium (#2)  COVID testing is core to Sonic’s business  Pandemic control  Sonic’s leaders in close, regular commun

  8. Slide 8: Procurement

    Procurement  Global shortage of PCR testing equipment and reagents  Extreme, urgent, worldwide demand for a single test!  Personal Protective Equipment (PPE) in short supply in early months  Sonic’s global procurement teams in constant negotiation with suppliers  Supply chain shortages of equip

  9. Slide 9: Innovation

    Innovation  COVID PCR test  In-house, fully validated test, bypassing conventional supply chains (Sonic Australia)  Novel means to bypass RNA extraction step of PCR test – faster, solves supplier shortages (Sonic UK, published)  COVID swabs  Validation of self-collection protocol for COVID PCR

  10. Slide 10: Public Contracts and Awards

    Public Contracts and Awards  USA  Sonic awarded US$5 million of equipment by US Department of Health & Human Services (HHS) to rapidly increase PCR testing capacity  Sonic awarded US National Institutes of Health (NIH) contract to increase capacity to >150,000 PCR tests per day (funding of ~US$21

  11. Slide 11: FY 2020 Headlines

    FY 2020 Headlines (as reported 20 August 2020)  FY 2020 results (excluding lease accounting standard AASB 16)  Revenue A$6,860 million (11% growth)  Underlying EBITDA A$1,109 million (24 June trading update ~A$1,075 million)  Underlying net profit A$552 million (7% growth)  Pre-pandemic (8.5 mo

  12. Slide 12: FY 2020 Revenue Split

    FY 2020 Revenue Split SCS & NZ Other Sonic A$418 A$32 Imaging 6% Belgium A$520 A$148 8% 2% USA A$1,861 UK & Ireland 27% A$466 7% Switzerland A$492 7% Australia Germany A$1,542 SCS & Other = Sonic Clinical Services (IPN A$1,354 23% Medical Centres, Sonic HealthPlus, other clinical 20% service entitie

  13. Slide 13: Dividends

    Dividends A$ FY 2020 FY 2019 Growth Interim Dividend $0.34 $0.33 3.0% Final Dividend $0.51 $0.51 0.0% Total Dividends $0.85 $0.84 1.2%  Final dividend maintained at A$0.51, supported by strong balance sheet, earnings and cashflows  Franked to 30% (interim dividend franked to 30%)  Record Date 8 S

  14. Slide 14: Capital Management

    Capital Management 30 June 30 June 2020 2019 Net interest-bearing debt A$M 2,022 2,299 Equity A$M 5,664 5,492  Gearing ratio = Net debt / Net debt + equity (covenant limit <55%)  Interest cover = EBITA / Net interest expense (covenant limit >3.25) Gearing ratio % 26.1 29.5  Debt cover = Net debt

  15. Slide 15: Outlook for FY 2021

    Outlook for FY 2021 (as issued 20 August 2020)  FY 2021 earnings guidance not provided due to COVID-19 related unpredictability  Outlook dependent on potential fluctuations in base business and COVID-19 testing revenues  In general, COVID-19 related falls in base business associated with increase

  16. Slide 16: Trading Update

    Trading Update Q1 FY 2021 (released 14 October 2020) A$M Q1 FY 2021 Q1 FY 2020 Growth Revenue 2,144 1,661 29% EBITDA 580 340 71% AGM Update (released 12 November 2020)  October 2020 revenue ~33% higher than October 2019  Pandemic second waves in Europe and USA  Base business showing less impact t

  17. Slide 17: Sonic Healthcare and COVID-19

    Sonic Healthcare and COVID-19  Operations  Sonic Healthcare responding magnificently to the call to combat COVID-19  Sonic facilities remain staffed and fully operational throughout pandemic  Mobilisation of resources and infrastructure to provide high-volume, rapid turnaround COVID-19 testing 

  18. Slide 18: Thank you

    Sy SONIC SY HEALTHCARE Thank you

Sonic Healthcare — Shareholder Meeting (November 2020) on 6ix