Sonic Healthcare Limited · ASX:SHL

Sonic Healthcare — H1 FY2018 Earnings Presentation

18 slides from Sonic Healthcare's earnings presentation, Feb 15, 2018

  1. Slide 1: Financial and Operational Review

    Financial and Operational Review For the half year ended 31 December 2017 Colin Goldschmidt CEO, Sonic Healthcare 15 February 2018

  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: Headlines

    Headlines  On track to achieve full-year FY 2018 guidance after 7 months trading  H1 FY 2018 results  Revenue growth 8%, EBITDA growth 9%  Margin expansion of 20 basis points  Result achieved on fewer working days than in prior period  One-off US net tax benefit of A$20 million  Solid organic

  4. Slide 4: H1 FY 2018 Summary

    H1 FY 2018 Summary A$M Statutory H1 FY 2018 H1 FY 2017 Growth Revenue 2,673 2,476 8% EBITDA 445 407 9% Net profit including US net tax benefit 229 197 16% Net profit excluding US net tax benefit 209 197 6% Cash generated from operations 352 333 6% EPS including US net tax benefit (cents) 54.1 47.1 1

  5. Slide 5: FY 2018 Guidance Reaffirmed

    FY 2018 Guidance Reaffirmed  EBITDA  Guidance issued 16 August 2017: 6-8% growth on underlying FY 2017 EBITDA of A$889 million (constant currency FY 2017 FX rates), no regulatory changes assumed  6-8% EBITDA growth maintained despite regulatory changes in USA and Germany  Interest expense  Expe

  6. Slide 6: Dividends

    Dividends A$ H1 FY 2018 H1 FY 2017 Growth Interim Dividend 0.32 0.31 3.2%  Interim dividend franked to 20%  Record Date 7 March 2018  Payment Date 10 April 2018  Dividend Reinvestment Plan to operate for interim dividend  Fine tuning of capital structure  1.5% discount, 10 day pricing period (

  7. Slide 7: H1 FY 2018 Revenue Split

    H1 FY 2018 Revenue Split SCS & Other $223 New Zealand 8% $13 Imaging <1% $234 Australia 9% Belgium $679 $67 25% 3% UK & Ireland $177 7% Switzerland $185 7% Germany $553 USA 21% $540 20% SCS & Other = Sonic Clinical Services (IPN Medical Centres, Sonic HealthPlus, other clinical service entities), GL

  8. Slide 8: Australian Pathology

    Australian Pathology  Revenue  5% organic growth  Earnings  Earnings growth and margin accretion ongoing Australia  Collection centre costs stabilised A$679M 25%  National Bowel Cancer Screening contract  Successful launch 2 January 2018  Volumes ramping up  Expected annual revenue ~A$30 mi

  9. Slide 9: Germany

    Germany  Revenue  20% revenue growth (constant currency)  4% organic revenue growth, normalised for working days  Synergistic acquisitions  Staber Laboratory Group integration proceeding to plan, first lab merger already completed  Medical Laboratory Bremen acquired July 2017, integration unde

  10. Slide 10: USA

    USA  Revenue  4.4% growth (constant currency)  Organic growth ~2% when normalised for working days and hurricanes (Harvey, Irma)  Hospital joint ventures  3 hospital lab JVs now operating successfully  New York University hospital system JV commenced October 2017  Further hospital laboratory

  11. Slide 11: Switzerland

    Switzerland  Revenue  3% organic revenue growth (constant currency)  5% organic revenue growth, normalised for working days  Operations  Ongoing strong performance  Small acquisition completed in Zurich (January 2018) ~CHF3 million annual revenue  Regulatory environment stable Switzerland A$1

  12. Slide 12: UK and Ireland

    UK and Ireland  Revenue  5% organic revenue growth (constant currency)  6% organic revenue growth, normalised for working days  Operations UK & Ireland  Operations stable A$177M 7%  Relocation to Halo Building completed successfully during the period  New NHS hospital laboratory contract (Bar

  13. Slide 13: Belgium

    Belgium  Revenue  6% revenue growth (constant currency)  7% organic revenue growth, normalised for working days  In-house NIPT (non-invasive prenatal testing) and other initiatives driving growth  Operations Belgium A$67M  Focus on efficiencies and integration of recent acquisitions 3%  Regul

  14. Slide 14: Sonic Imaging

    Sonic Imaging  Financials  8% organic revenue growth, 9% normalised for working days  Strong earnings growth Imaging  Operations A$234M 9%  Benefiting from investments in equipment and greenfield sites over recent years  Leveraging resources and infrastructure to drive efficiencies  Ongoing f

  15. Slide 15: Sonic Clinical Services (SCS)

    Sonic Clinical Services (SCS)  SCS includes medical centres (IPN) and occupational health (Sonic HealthPlus)  Australia’s largest primary care and occupational health provider  233 centres and ~2,260 GPs SCS & Other  Financials A$223M 8%  3% revenue growth, 4% normalised for working days  Mode

  16. Slide 16: Capital Management

    Capital Management 31 December 30 June 2017 2017 Net interest-bearing debt A$M 2,515 2,435 Equity A$M 4,049 3,926 Gearing ratio % 38.3 38.3 Interest cover X 10.4 10.8 Debt cover X 2.7 2.7  Increase in debt due to acquisitions and exchange rate changes, partly offset by strong operating cashflow  I

  17. Slide 17: Outlook

    Outlook  On track to achieve full-year guidance  Long-term organic revenue growth of ~5% expected, underpinned by industry drivers and well-established brands  Active pipeline of acquisition, contract and joint venture opportunities  Infrastructure investments in recent years driving revenue and

  18. Slide 18: Thank you

    @ SONIC SS | HEALTHCARE Thank you Sees i

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