Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — FY2015 Earnings Presentation
21 slides from Sonic Healthcare's earnings presentation, Aug 18, 2015
Slide 1: Financial and Operational Review
Financial and Operational Review For the year ended 30 June 2015 Colin Goldschmidt CEO, Sonic Healthcare 18 August 2015
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,
Slide 3: Full-year highlights
‣ Result in line with July 2015 earnings update ‣ FY ‘15 revenue growth of 7.3% ‣ Forecast FY ‘16 EBITDA growth ~20% ‣ Accretive acquisitions bolster future growth ‣ Full-year dividend up 4.5%
Slide 4: FY15 financial results
A$ M FY ‘15 FY ‘14 Growth Revenue 4,201 3,913 7.3% EBITDA (before expensing non-recurring costs) 731 738 -1.0% Net profit (after expensing non-recurring costs) 363 385 -5.6% ‣ Revenue growth ‣ Organic growth ~5%, enhanced by accretive acquisitions ‣ Strong growth in Germany, UK and Switzerland ‣ US
Slide 5: Dividends
A$ FY ‘15 FY ‘14 Growth Interim Dividend $0.29 $0.27 7.4% Final Dividend $0.41 $0.40 2.5% Total Dividends $0.70 $0.67 4.5% ‣ Final dividend franked to 55% ‣ Record Date 11 September 2015 ‣ Payment Date 22 October 2015 ‣ Dividend Reinvestment Plan (DRP) to operate for final dividend
Slide 6: Dividend reinvestment plan and shortfall placement
‣ DRP ‣ 1.5% discount, 20 day pricing period (16 Sept to 13 Oct) ‣ DRP applications due by 14 September ‣ DRP Shortfall Placement Agreement ‣ CBA Equities will subscribe for up to 100% of shortfall in DRP participation ‣ No guarantee that full DRP shortfall will be funded ‣ DRP and DRP Shortfall Pla
Slide 7: FY16 guidance
‣ EBITDA ‣ A$850-875 million at current exchange rates ‣ ~20% growth over FY ‘15 reported EBITDA (A$717 million) ‣ A$815-840 million at constant currency rates (FY ‘15 FX rates) ‣ Excludes future acquisitions ‣ Interest expense ‣ Expected to increase by 5-10% (constant currency) due to acquisitions
Slide 8: Revenue by geography and division
New Zealand SCS $34 $362 1% 9% Imaging $414 Australia Belgium 10% $1,185 $103 28% 2% Switzerland $111 3% UK & Ireland $253 6% Germany USA $805 $930 19% 22% Statutory revenue in A$ M SCS = Sonic Clinical Services (IPN Medical Centres, occupational health and other clinical service entities)
Slide 9: Revenue history and indicative FY16 revenue
3,000 2,500 2,000 A$ M 1,500 Australia 1,000 International Indicative FY ‘16 500 revenues, assuming current spot rates - 1999 2016 est. 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Financial Year
Slide 10: Australia pathology
‣ Revenue Australia ‣ 5% growth, including SAN Pathology acquisition (added 50 bps) $1,185 28% ‣ Strong growth in specialist referrals and esoteric tests ‣ Fees and volumes impacted by Medicare changes 1 November 2014 ‣ Sonic growth substantially stronger than Medicare market data ‣ Earnings ‣ Negat
Slide 11: USA
‣ Revenue ‣ Full-year revenue growth 2% (1% in H1, 3% in H2) ‣ Market volume growth improving ‣ Earnings ‣ Negative earnings growth in FY ‘15, largely CBLPath-related USA ‣ Major restructure of CBLPath successfully completed $930 22% ‣ CBLPath recurring annual savings >US$10 million achieved ‣ FY ‘1
Slide 12: Germany
‣ Revenue ‣ 11% growth, 6% organic, well above market growth ‣ Continued market share gains in all segments of operation ‣ Investments in IT, new tests and innovative technologies driving growth ‣ Acquisitions and integration ‣ Labco integration completed successfully Germany $805 ‣ 4 small bolt-on
Slide 13: UK and Ireland
‣ Revenue growth 25% ‣ Includes 3 months of JV with UCLH and Royal Free ‣ Strong private market growth ‣ FY ‘16 revenue growth ~40% expected – includes full year of JV UK & Ireland ‣ JV with University College London Hospital / Royal Free $253 6% ‣ Commenced 1 April 2015 ‣ Includes North Middlesex U
Slide 14: Belgium
‣ Revenue growth returns after cycling through November 2013 fee cut ‣ KLD acquisition successfully closed 3 July 2015, integration commencing ‣ Stable regulatory outlook Belgium $103 2%
Slide 15: Switzerland
‣ Revenue growth 5% Switzerland $111 ‣ Strong earnings and margin growth 3% ‣ Stable regulatory environment ‣ Medisupport acquisition closed 2 July 2015 ‣ Sonic now clear #1 player in Switzerland ‣ Well placed for growth and further acquisitions
Slide 16: Medisupport Acquisition
Medisupport Acquisition ‣ Strong market position ‣ Covering both French and German speaking regions ‣ Laboratories in 10 cities ‣ Attractive mix of routine and esoteric testing ‣ Excellent genetics capabilities, including next generation sequencing ‣ Good cultural fit ‣ Values based on Medical Leade
Slide 17: FY16 laboratory revenue growth outlook
NZ Belgium 1% 3% Switzerland 8% • Strong total laboratory revenue growth in FY ‘16 UK • UK – strong revenue growth with JV with UCLH/Royal Free 9% Australia 30% • Switzerland – strong revenue growth with Medisupport acquisition • Healthy organic revenue growth in all divisions • Australia ~30% of to
Slide 18: Imaging and Sonic Clinical Services
‣ Australian Imaging: revenue growth 3%, margin up 10 bps SCS $362 ‣ Total imaging revenue and margin impacted by 2014 sale of NZ business 9% Imaging $414 ‣ Imaging division performing solidly 10% ‣ Includes IPN Medical Centres and Occupational Health ‣ Revenue growth 4% ‣ Medical Centre operations
Slide 19: Debt and gearing metrics
30 June ‘15 30 June ‘14 Net interest-bearing debt A$ M 1,976 1,739 Gearing ratio % 37.2 35.9 Interest cover X 11.2 10.7 Debt cover X 2.6 2.4 ‣ Available headroom at 30 June 2015 ~A$630 million ‣ Metrics above prior to acquisitions of Medisupport and KLD (July 2015) ‣ Medisupport acquisition funded l
Slide 20: Outlook and company strengths
‣ Sonic poised for significant growth ‣ Revenue and earnings growth of ~20% forecast for FY ‘16 (refer guidance) ‣ Ongoing strong organic growth in all major markets ‣ Targeting additional acquisitions and contract opportunities ‣ FX tailwind expected in FY ‘16 ‣ Company strength ‣ Strong position i
Slide 21: Thank you
@ SONIC sy | HEALTHCARE Thank you ee Eien |