Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — FY2022 Earnings Presentation

23 slides from Sonic Healthcare's earnings presentation, Aug 24, 2022

1. Slide 1: CEO Presentation – Full Year Results to 30 June 2022

   24 August 2022 The Manager – Listings Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Via electronic lodgement Dear Sir / Madam CEO PRESENTATION – FULL YEAR RESULTS TO 30 JUNE 2022 At 10.00am AEST today, Dr Colin Goldschmidt, Chief Executive Officer, will host

2. Slide 2: Financial and Operational Review

   Financial and Operational Review Year ended 30 June 2022 Colin Goldschmidt CEO, Sonic Healthcare 24 August 2022

3. Slide 3: 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

4. Slide 4: Headlines

   Headlines  Record revenue and earnings for FY 2022  Revenue A$9.3 billion, up 7%  EBITDA A$2.8 billion, up 11%  Net profit A$1.5 billion, up 11%  Growth  7% revenue growth comprising COVID testing 3%, base business 2% and acquisitions 2%  Organic revenue growth 5%  Acquisitions: A$628 millio

5. Slide 5: Financial Summary

   Financial Summary A$ million (Actual Currency) FY 2022 FY 2021 Growth Revenue 9,340 8,754 7% EBITDA 2,830 2,560 11% Net profit 1,461 1,315 11% Cash generated from operations 2,226 2,043 9%  Revenue and earnings  Strong result a function of solid base business growth combined with ongoing COVID tes

6. Slide 6: FY 2022 Revenue

   FY 2022 Revenue 9.3 8.9  Total revenue 2.4  7% growth on FY 2021 2.2 6.8  Organic (constant currency) growth 5% 6.5  Base business revenue* 0.4  2.1% organic growth on FY 2021 A$ BILLIONS  5.5% organic growth on FY 2019 (pre-pandemic)  COVID revenue  13% growth on FY 2021 (constant currency)

7. Slide 7: Base Business Revenue

   Base Business Revenue HALF YEARLY REVENUE Half Year Revenue  H2 FY 2022 base business revenue at record level  H2 vs H1 FY 2022: 3.4% base business growth 1,008 1,336 1,093 1,150  H2 FY 2022 vs H2 FY 2021: base business growth despite Omicron wave in H2 FY 2022, which drove 8% growth in COVID rev

8. Slide 8: Dividends

   Dividends Dividend History A$ FY 2022 FY 2021 Growth $1.10 Interim Dividend $0.40 $0.36 11% $1.00 $0.90 Final Dividend $0.60 $0.55 9% $0.80 Total Dividends $1.00 $0.91 10% $0.70 $0.60 A$ $0.50  Progressive dividend strategy maintained $0.40  FY 2022 dividends franked to 100% $0.30  Final dividend

9. Slide 9: Capital Management

   Capital Management Debt Cover History 3.5 30 June 30 June 2022 2021 3.0 Net interest-bearing debt A$M 812 940 2.5 2.0 RATIO (X) Equity A$M 7,428 6,504 1.5 Debt cover X 0.3 0.4 1.0 Pre-pandemic long-term average Gearing ratio % 9.7 12.5 0.5 Interest cover X 47.3 33.8 0.0  No current exposure to inte

10. Slide 10: FY 2022 Revenue Split

    FY 2022 Revenue Split SCS/Other A$433M NZ 5% A$32M Radiology A$706M Belgium 7% A$175M 2% Australia A$2,459M 26% Switzerland A$631M 7% Revenue in A$ millions UK A$708M Total Revenue A$9,340 million (including A$2 8% million interest) SCS / Other = Sonic Clinical Services (IPN Medical Centres, Sonic H

11. Slide 11: Australian Pathology

    Australian Pathology  FY 2022 revenue  Total revenue growth 24%  COVID revenue growth 143%  Base business organic revenue down 1% vs FY 2021, reflecting effects of pandemic  Base business organic revenue growth 11% vs FY 2019 (pre-pandemic)  Operations Australia A$2,459M  Contract to provide

12. Slide 12: USA

    USA  FY 2022 revenue (constant currency)  Total revenue down 6%  Base business organic revenue growth 2%  COVID revenue down 38%  Operations  ProPath acquisition completed December 2021, integration proceeding to plan  ThyroSeq (exclusive thyroid cancer genomic test) revenue continuing to gro

13. Slide 13: Germany

    Germany  FY 2022 revenue (constant currency)  Total revenue growth 5%  Base business organic revenue growth 3%  COVID revenue growth 9%  Operations  National program for whole genome sequencing for COVID variants extended until at least July 2023, > 140,000 sequences performed by Sonic to date

14. Slide 14: UK

    UK  FY 2022 revenue (constant currency)  Total revenue growth flat  Strong base business organic growth of 24%  COVID revenue down 41%  Operations  Significant increase in private sector GP referrals, a result of patient demand for private services  Cleveland Clinic London laboratory successf

15. Slide 15: Switzerland

    Switzerland  FY 2022 revenue (constant currency)  Total revenue growth 8%  Base business organic revenue growth 5%  COVID revenue growth 27% Switzerland A$631M  Operations 7%  New CEO appointed for Sonic’s Zurich operations (Medica) following passing of founder CEO Dr Franz Kaeppeli, seamless

16. Slide 16: Belgium

    Belgium  FY 2022 revenue (constant currency)  Total revenue down 4%  Full-year base business revenue growth flat, growth returned in H2  COVID revenue down 13% Belgium A$175M  Operations 2%  New CEO appointed for Sonic Healthcare Benelux following retirement of founder CEO Geert Salembier, who

17. Slide 17: Radiology

    Radiology  FY 2022 revenue  Total revenue growth 14%  Organic revenue growth 2% (cycling 15% growth in prior year)  FY 2022 earnings  EBITDA growth 3%, net profit before tax down 10%  Current year profit (excluding acquisitions) significantly higher than before pandemic Radiology A$706M 7%  P

18. Slide 18: Sonic Clinical Services (SCS)

    Sonic Clinical Services (SCS)  FY 2022 revenue  Revenue growth 5%  Driven by pandemic-related services, routine GP revenue subdued SCS/Other A$433M 5%  Operations  >1.1 million COVID-19 vaccinations administered to date in clinics, mass vaccination hubs, aged care facilities and workplaces  Fa

19. Slide 19: Partnership with Harrison.ai

    Partnership with Harrison.ai  Investment in Harrison.ai  20% strategic (non-controlling) equity stake, acquired H1 FY 2022  Harrison.ai has an existing joint venture called Annalise.ai, a market leader in radiology AI  Annalise.ai chest X-ray product is the world’s most comprehensive, capable of

20. Slide 20: Sustainability

    Sustainability  Sustainability Report  Sonic’s global sustainability strategy and achievements will be detailed in Sonic’s 2022 Sustainability Report to be released in November 2022  Recent progress  Sustainability governance and management structures established at board, executive and operatio

21. Slide 21: Outlook – FY 2023

    Outlook – FY 2023  Guidance not provided due to pandemic-related unpredictability  Base business growth expected to accelerate  Strong underlying industry drivers and market share growth  Backlog of testing postponed during pandemic  July 2022 base business organic revenue* growth 3.9% vs July

22. Slide 22: Summary

    Summary  Record financial result driven by COVID testing, growth of base business and acquisitions  Substantial ongoing COVID testing expected into future, level dependent on pandemic evolution  Total dividends for year A$1.00 per share, up 10%, franked to 100%  Acquisitions of ~$628 million for

23. Slide 23: Thank you

    Sy SONIC SY HEALTHCARE Thank you

Sonic Healthcare — FY2022 Earnings Presentation on 6ix