Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — Shareholder Meeting (February 2016)
32 slides from Sonic Healthcare's shareholder meeting presentation, Feb 11, 2016
Slide 1: Sonic Healthcare Annual General Meeting
Sonic Healthcare Annual General Meeting 20 November 2014
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: Headlines
Headlines ‣ Double digit revenue and earnings growth in FY ‘14 ‣ FY ‘14 total dividend up by 8.1% ‣ Major contracts in UK and Canada
Slide 4: Summary FY '14
Summary FY ‘14 Growth Statutory Constant Currency Revenue 12.3% 4.8% EBITDA 13.3% 5.4% Net profit 14.9% 6.5% Earnings per share 13.3% 5.0% ‣ Financial strength ‣ Double-digit revenue and earnings growth ‣ Margin accretion in each of Pathology (ex-Labco Germany acquisition), Radiology and IPN ‣ Opera
Slide 5: Financial Summary FY '14
Financial Summary FY ‘14 FY ‘14 FY ‘13 Growth Revenue (A$M) 3,913 3,484 12.3% EBITDA (A$M) 733 647 13.3% Net profit (A$M) 385 335 14.9% Earnings per share (cents) 95.5 84.3 13.3%
Slide 6: Annual Revenue
Annual Revenue 4,000 3,500 3,000 2,500 A$ M 2,000 1,500 1,000 500 - 1993 2014 Revenue (A$ million) 33 3,913
Slide 7: Revenue Split FY '14
Revenue Split FY ‘14 IPN 9% Imaging 11% Laboratory Medicine Pathology 80%
Slide 8: Revenue Split FY '14
Revenue Split FY ‘14 Australia 49% International 51%
Slide 9: Revenue Split FY '14
Revenue Split FY ‘14 IPN $349 New Zealand 9% $41 1% Imaging $415 Australia Switzerland 11% $1,131 $100 2% 29% Belgium $107 2% UK & Ireland $193 5% USA Germany $830 $744 21% 19% Statutory revenue in A$ million Blue wedges = Laboratory medicine / pathology Green wedges = Imaging and IPN (medical centr
Slide 10: Dividends
Dividends A$ FY ‘14 FY ‘13 Growth Interim Dividend $0.27 $0.25 8.0% Final Dividend $0.40 $0.37 8.1% Total Dividends $0.67 $0.62 8.1% ‣ Final dividend franked to 55% (previously 45%) ‣ Paid 23 September 2014
Slide 11: Dividend History
Dividend History Progressive Dividend Policy $0.70 $0.65 $0.60 $0.55 $0.50 $0.45 $0.40 Dividends declared $0.35 per share $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- Financial year
Slide 12: Trading Update
Trading Update October YTD ‣ Strong performance YTD in Germany, UK, Switzerland, IPN, Imaging ‣ Belgium – now cycled through November ‘13 fee cut ‣ Australian pathology ‣ Low market volume growth in Q1 FY ’15 (post-Federal Budget announcement), recovery in October ‣ Increasing cost of collection cen
Slide 13: Earnings Guidance FY '15
Earnings Guidance FY ‘15 ‣ Original FY ‘15 guidance: EBITDA growth of approximately 5% ‣ Revised FY ‘15 guidance: EBITDA growth of 2 – 4% ‣ EBITDA growth strongly weighted to H2 (flat in H1) ‣ Australian pathology – volume growth returns to trend levels in Q2 ‣ Australian pathology – cost-out initia
Slide 14: Growth Opportunities
Growth Opportunities ‣ Sonic’s Medical Leadership culture provides competitive advantage in major growth areas ‣ Organic growth ‣ Market growth and market share gains ‣ Market growth long-term trend ~5% ‣ Market share gains driven by culture, high quality service and innovation ‣ Acquisitions ‣ Trac
Slide 15: UK Joint Venture
UK Joint Venture ‣ JV with University College London Hospital/Royal Free ‣ Contracts signed 30 July 2014, commencement early 2015 ‣ 51% Sonic ownership ‣ Incremental revenue ~£50 million in first full year ‣ Earnings accretive, margin dilutive ‣ Chair of JV board: Lord Carter of Coles ‣ 10 year cont
Slide 16: Halo Building
Halo Building New central London hub lab facility
Slide 17: New Hub Lab
BUILDING ~ 1 Mabledon Place King’s Cross Biomedical Campus
Slide 18: Canada
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Slide 19: Alberta, Canada
Alberta, Canada Laboratory Services Contract ‣ Sonic selected as exclusive preferred provider ‣ Laboratory services in the Edmonton area ‣ Option for Alberta Health Services to extend contract into Northern and Central Alberta ‣ Long-term, significant, strategic opportunity ‣ 15 years with possible
Slide 20: Alberta
Alberta ‣ Area: 82% of NSW ‣ ~1,200 Km from north to south ‣ 4 million people ‣ Capital: Edmonton (pop. 1.2 million)
Slide 21: Sonic Innovations
Sonic Innovations @ SONIC HEALTHCARE Quality is in our DNA
Slide 22: Sonic Innovations
Sonic Innovations ‣ Sonic continues to pioneer innovations to optimise its operations and services ‣ Laboratory Medicine/Pathology ‣ Radiology ‣ Primary Care ‣ Occupational health ‣ Healthcare service delivery has changed in the digital age ‣ Enhancing service provision to clinicians and patients ‣
Slide 23: Why Innovate?
Why Innovate? ‣ Innovation drives revenue growth ‣ Service/product differentiation ‣ Reinforces market leadership and brand ‣ Creates strong bonds with customers (clinicians, hospitals, patients) ‣ Innovation fosters operational efficiency ‣ IT innovations crucial for optimising internal operations
Slide 24: Sonic Innovations
Sonic Innovations Examples of recent Sonic innovations…
Slide 25: Sonic Dx
Sonic Dx Mobile Results App: Sonic Healthcare Australia
Slide 26: Sonic Dx
Sonic Dx ‣ Allows doctors to access patient results using mobile devices ‣ Secure ‣ Intuitive, easy to use ‣ Strong positive feedback from GPs and specialists ‣ Feature-rich app ‣ Rapid access of lab test results ‣ Cumulative results and graphing ‣ Creation of watch lists and special folders ‣ Reque
Slide 27: Sonic Pathology Handbook
Sonic Pathology Handbook Sonic Healthcare Australia A Seminal Laboratory Manual for Clinicians
Slide 28: Sonic Pathology Handbook
Sonic Pathology Handbook ‣ Provides doctors with a tool to enhance clinical practice ‣ 800 topics, ~1,000 pages ‣ First of its kind in Australia ‣ Sonic’s commitment to teaching and academic excellence ‣ Of great practical use in clinical practice ‣ Received with critical acclaim by clinicians and m
Slide 29: GLP Track System
GLP Track System A Global Lab Industry Game Changer
Slide 30: GLP Track System
GLP Track System ‣ Total Laboratory Automation system ‣ Single-tube transport with intelligent ‘cars’ ‣ Modular interfaces to different lab instruments ‣ Fully automated specimen archive system ‣ Integrates workflow and lab management systems ‣ Patented technology ‣ Implementation ‣ Sonic is a minor
Slide 31: Sonic Healthcare Today
Sonic Healthcare Today ‣ World’s third-largest medical diagnostics company ‣ Market leader in Australia, Germany, UK ‣ 28,000 employees ‣ Attractive and growing global healthcare markets ‣ Proven business model ‣ Successful consolidator of fragmented markets ‣ Competitive differentiation to drive or
Slide 32: Thank you
2] SONIC HEALTHCARE Quality is in our DNA Thank you SS ; ae
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