Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — FY2017 Earnings Presentation

19 slides from Sonic Healthcare's earnings presentation, Aug 16, 2017

1. Slide 1: Financial and Operational Review

   Financial and Operational Review For the year ended 30 June 2017 Colin Goldschmidt CEO, Sonic Healthcare 16 August 2017

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: FY 2017 Headlines

   FY 2017 Headlines  FY 2017 result in line with guidance – underlying EBITDA growth 5.3% (constant currency)  Underlying revenue growth 5.8% to A$5.3 billion (constant currency)  Underlying net profit growth 4.4% (constant currency)  Final dividend up 4.5% to A$0.46 per share (full-year dividend

4. Slide 4: FY 2018 Guidance

   FY 2018 Guidance  EBITDA  6-8% growth on underlying FY 2017 EBITDA of A$889 million (constant currency FY 2017 FX rates)  No regulatory changes assumed, including proposed US Medicare fees  Excludes future acquisitions  Interest expense  Expected to increase by 10-15% (constant currency)  Cur

5. Slide 5: FY 2017 Financial Summary

   FY 2017 Financial Financial Summary Summary STATUTORY UNDERLYING CONSTANT CURRENCY A$ M FY 2017 FY 2016 Growth FY 2017 FY 2016 Growth Revenue 5,122 5,052 1% 5,308 5,018 6% EBITDA 869 880 (1)% 923 876 5% Net profit 428 451 (5)% 459 440 4% Earnings per share (A$) 1.02 1.09 (7)% 1.10 1.07 3%  Statutor

6. Slide 6: Dividends

   Dividends A$ FY 2017 FY 2016 Growth Interim Dividend $0.31 $0.30 3.3% Final Dividend $0.46 $0.44 4.5% Total Dividends $0.77 $0.74 4.1%  Final dividend franked to 20%  Record Date 11 September 2017  Payment Date 11 October 2017  Dividend Reinvestment Plan (DRP) to operate for final dividend  Fin

7. Slide 7: Full-year Dividend History

   Full-year Dividend History $0.80 $0.77 $0.70 $0.60 $0.50 A$ $0.40 $0.30 $0.20 $0.10 $0.02 $0.00 7

8. Slide 8: FY 2017 Revenue Split

   FY 2017 Revenue Split SCS & Other $423 8% New Zealand Imaging Australia $25 <1% $442 $1,320 9% 26% Belgium $127 2% UK & Ireland $342 7% Switzerland $375 7% USA $1,106 22% Germany $959 19% SCS & Other = Sonic Clinical Services (IPN • Statutory revenue in A$ M Medical Centres, occupational health, oth

9. Slide 9: Australian Pathology

   Australian Pathology  Revenue  5% growth, ~4% organic, above Medicare market growth  Earnings  Return to earnings growth and margin accretion in FY 2017  Successful ongoing strategies to manage costs  Outlook positive after several years of negative earnings growth  Regulatory environment sta

10. Slide 10: USA

    USA  Revenue  5% growth, ~3% organic (constant currency), in line with market growth  Operational highlights  Southeast division integrated into CPL/Southwest division  Integration of Californian operations progressing well after acquisition of West Pacific Medical Laboratory (Los Angeles) in J

11. Slide 11: Germany

    Germany  Financials  11% revenue growth, ~5% organic (constant currency), above market growth  Strong increase in earnings and margin  Acquisitions  Staber Laboratory Group, completed January 2017  Bremen Medical Laboratory, completed July 2017  Acquisitions provide broader geographical cover

12. Slide 12: Switzerland

    Switzerland  Financials  ~5% organic revenue growth (constant currency)  Ongoing strong earnings and margin growth  Operational highlights  Stable, growing and innovative businesses  Wide geographical coverage  Leading provider of esoteric testing in Switzerland  Regulatory environment stabl

13. Slide 13: UK & Ireland

    UK & Ireland  Organic revenue growth ~4% (constant currency)  Operational highlights  Health Services Laboratories (HSL) joint venture with UCLH and Royal Free performing well  Further NHS contracts in the pipeline, with a new hospital contract close to signing  New private laboratory establish

14. Slide 14: Belgium

    Belgium  Financials  ~1% organic revenue growth (constant currency)  Revenue and earnings adversely impacted by recent fee changes  Operational highlights  Genetic sequencing platform established in Antwerp central laboratory A$127M  In-house NIPT (non-invasive prenatal testing) commenced rece

15. Slide 15: Sonic Imaging

    Sonic Imaging  Strong financial performance  5% revenue growth  EBITDA growth of 7%, 30 basis points of margin accretion  Operational highlights  Recent greenfield sites ramping up, with further opportunities planned  Market growth strengthening in recent months A$442M 9%  Regulatory outlook

16. Slide 16: Sonic Clinical Services (SCS)

    Sonic Clinical Services (SCS)  SCS includes medical centres and occupational health  Australia’s largest primary care and occupational health provider  236 centres and >2,200 GPs  Financials  ~1% organic revenue growth  Medical centre revenue and earnings adversely impacted by GP fee indexatio

17. Slide 17: Capital Management

    Capital Management 30 June 2017 30 June 2016 Net interest-bearing debt A$ M 2,435 2,284 Equity A$ M 3,926 3,733 Gearing ratio % 38.3 38.0 Interest cover X 10.8 11.5 Debt cover X 2.7 2.6  Increase in debt due to acquisitions, partly offset by strong operating cashflow and exchange rate changes  Cur

18. Slide 18: Outlook

    Outlook  Sonic is market leader in four major Western countries, with strong position in all its markets  Global management team stable, experienced and passionate  Medical Leadership culture unifies company, augments services and provides competitive advantage  Strong global industry fundamenta

19. Slide 19: Thank you

    @ SONIC sy | HEALTHCARE Thank you a — EE Ben |

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