Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — H1 FY2013 Earnings Presentation
16 slides from Sonic Healthcare's earnings presentation, Feb 19, 2013
Slide 1: Half Year Results
Half Year Results For the period ended 31 December, 2012 Colin Goldschmidt CEO, Sonic Healthcare 19 February 2013
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: Overview
Overview Financial summary Growth Constant Currency Statutory Revenue 6% 3% EBITDA 7% 3% Net profit 9% 5% Earnings per share 8% 4% Operational summary Solid revenue growth and performance in Australia and Europe Margin expansion 10 bps, 30 bps excluding Superstorm Sandy; follows 30 bps in FY
Slide 4: Financial Summary
Financial Summary H1 ‘13 GROWTH H1 ‘13 CURRENCY H1 ‘13 v H1 ‘12 TRANSLATION A$M Constant Currency Constant Currency Statutory EFFECTS Revenue 1,733 6% 1,697 (36) EBITDA 313 7% 304 (9) Interest Expense 34 (14)% 33 1 Net profit 155 9% 151 (4) EPS – 39.5 cents (constant currency), up 8% on H1 ‘12 O
Slide 5: FY '13 Guidance
FY ‘13 Guidance ‣ Full-year guidance: EBITDA growth 5-10% ‣ Expecting full-year result at lower end of range ‣ Unforeseen EBITDA growth impacts ‣ German fee quotas lower than expected for H2 ‘13 ‣ Anatomical pathology fee cuts in USA ‣ Lower than expected USA growth ‣ Superstorm Sandy ‣ Interest and
Slide 6: Revenue Split
Revenue Split H1 FY ‘13 IPN $164 10% New Zealand Imaging Australia $20 1% $203 $520 12% 31% Switzerland $37 2% Belgium $48 3% UK & Ireland $72 4% Germany USA $265 $367 16% 21% Statutory revenue in A$ million
Slide 7: Australian Pathology
Australian Pathology ‣ Organic revenue growth 5% ‣ Broadly in line with estimate of true market growth ‣ Reported Medicare growth for this period inconsistent with market Australia ‣ Market share movement between Sonic’s competitors A$520 31% ‣ Fee reduction of ~1.1% of Australian pathology revenue
Slide 8: USA
USA ‣ Revenue ‣ Revenue growth -2% including Superstorm Sandy ‣ Growth consistent with major competitors in challenging economic environment ‣ Launching ‘LabSynergy’ – an initiative to expand in hospital laboratory market ‣ Other revenue growth initiatives also in train ‣ Obamacare expected to expan
Slide 9: USA - Initiatives
USA - Initiatives ‣ Strengthening of senior management team ‣ Major cost reduction program commenced ‣ Centralisation of billing functions – Memphis into Austin recently completed ‣ Procurement synergies gaining momentum ‣ Business rationalisation within Sonic’s US divisions USA A$367 ‣ Continued in
Slide 10: Germany
Germany ‣ Revenue growth 8% ‣ Organic revenue growth 5% ‣ Market share growth – quality and innovation, including e-Health rollout ‣ Margin expansion ‣ Synergies and operational enhancements ‣ Procurement tenders ‣ Rationalisation of infrastructure ‣ Small synergistic acquisitions completed July 201
Slide 11: UK, Belgium, Switzerland
UK, Belgium, Switzerland ‣ UK ‣ UK revenue growth 60% ‣ Growth due to contract wins (BMI, North-West London Trust and Ramsay) ‣ Margins diluted by lower margin contracts Switzerland A$37 2% ‣ Belgium Belgium ‣ Ongoing strong performance A$48 3% ‣ Fee increase 1% from 1 February ’13 UK A$72 4% ‣ Stab
Slide 12: Sonic Imaging, IPN Medical Centres
Sonic Imaging IPN Medical Centres ‣ Sonic Imaging ‣ Revenue growth 6% ‣ Strong performance with margin expansion IPN A$164 ‣ Ongoing cost control and process review programs 10% Imaging A$203 ‣ IPN 12% ‣ Revenue growth 15% (IPN 7%, Kinetic Health 23%) ‣ Strong performance with margin expansion ‣ Kin
Slide 13: Sonic Debt Summary
Sonic Debt Summary Investment Grade Credit Metrics 31 Dec ‘12 30 Jun ‘12 Net interest-bearing debt A$M 1,543 1,571 Gearing ratio % 36.4 37.6 Interest cover X 7.8 7.0 Debt cover X 2.4 2.5 ‣ Available headroom >$400 million ‣ Gearing ratio = Net debt / Net debt + equity (bank covenant limit <55%) ‣ In
Slide 14: Interim Dividend
Interim Dividend H1 ‘13 H1 ‘12 Growth Interim Dividend A$0.25 A$0.24 4% ‣ Dividend franked to 45% ‣ Record Date 6 March 2013 ‣ Payment Date 21 March 2013 ‣ Dividend Reinvestment Plan suspended
Slide 15: Overview and Outlook
Overview and Outlook ‣ Business strong, stable and growing ‣ ROIC and EPS accretion integral to strategy ‣ Continued focus on synergy capture and margin expansion ‣ Confident US initiatives will lift earnings ‣ ROIC/EPS accretive acquisitions ‣ Strong balance sheet ‣ Embedded corporate culture and v
Slide 16: Thank you
Q@ SONIC sy HEALTHCARE Thank you