Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — Shareholder Meeting (November 2012)
16 slides from Sonic Healthcare's shareholder meeting presentation, Nov 22, 2012
Slide 1: Annual General Meeting
Annual General Meeting 22 November 2012
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: Highlights FY '12
Highlights FY ‘12 Growth Constant Currency Statutory Revenue 11% 8% EBITDA 12% 9% Net Profit 10% 7% Operating cashflow N/A 19% Full‐year guidance met Strong revenue growth Margin expansion 30 bps ROIC accretion 90 bps Ongoing synergy capture, particularly procurement Strong and stable op
Slide 4: Financial Summary FY '12
Financial Summary FY ‘12 FY ‘12 Growth FY ‘12 Currency FY ‘12 v FY ‘11 Translation Constant Currency Constant Currency Statutory Effects Revenue A$M 3,423 11% 3,346 (77) EBITDA A$M 639 12% 624 (15) Net Interest Expense A$M 78 20% 74 4 Net Profit A$M 323 10% 316 (7) Earnings per Share (EPS) cents 82.
Slide 5: Dividends and DRP
Dividends and DRP FY ‘12 Interim Dividend A$0.24 Final Dividend A$0.35 Total Dividend A$0.59 Final dividend franked to 45% Record Date 7 September 2012 Payment Date 9 October 2012 Dividend Reinvestment Plan activated Fine‐tuning of capital structure ~$37 million raised
Slide 6: Return on Invested Capital (ROIC)
Return on Invested Capital (ROIC) FY ‘12 FY ‘11 Change ROIC 9.8% 8.9% 90 bps Improvement driven by: Organic revenue and earnings growth Synergy capture Synergistic acquisitions No beachhead acquisitions – critical mass achieved in major markets ROIC accretion to continue ROIC calculated
Slide 7: Revenue Split
Revenue Split FY ‘12 IPN $299 9% Radiology Australia New Zealand $384 $1,004 $62 2% 11% 30% Switzerland $75 2% Belgium $101 3% UK & Ireland $111 4% Germany USA $542 $765 16% 23% Statutory revenue in A$ M
Slide 8: FY '13 Guidance Update
FY ‘13 Guidance Update EBITDA growth of 5‐10% EBITDA growth rate after 4 months of FY ‘13 in line with guidance German and Australian fee changes broadly in line with expectation USA market factors: continuing low market growth, unbudgeted anatomical pathology fee cuts and hurricane ‘Sandy’
Slide 9: Australian Pathology
Australian Pathology Solid organic revenue growth continues Acquisition of Healthscope pathology businesses WA acquisition completed 18 October 2012, integration proceeding well NSW and Queensland acquisitions abandoned due to ACCC issues Pathology Funding Agreement (PFA) PFA requires re
Slide 10: USA
USA Organic industry volume growth remains subdued Hurricane ‘Sandy’ Sonic infrastructure unaffected Volumes in northeast division low in weeks following storm Regulatory Environment Medicare revenue represents ~22% of Sonic’s total USA revenue ~5% Medicare fee cut from Jan/Feb 2013 (~
Slide 11: Germany
Germany Organic revenue growth remains strong Synergy capture gaining momentum Procurement, mergers, courier integration, centralisation etc National funding structure for statutory fees (EBM) Commenced 1 October 2012 EBM fees ~50% of Sonic’s German revenue Strong industry growth promp
Slide 12: Europe
Europe Belgium, Switzerland, UK & Ireland UK & Ireland FY ‘12 revenue growth 23% – includes BMI and Ramsay contracts and organic growth North West London Hospital Trust contract implementation underway Currently participating in major NHS tenders Bowel cancer screening contract win in Irel
Slide 13: Sonic Imaging Medical Centres (IPN)
Sonic Imaging Medical Centres (IPN) Sonic Imaging FY ‘12 organic revenue growth 6% Tight cost control Additional full and partial MRI licences from November 2012 Radiologist leadership and engagement Stable workforce and business IPN FY ‘12 revenue growth 35%, including acquisitions
Slide 14: Sonic Healthcare - Overview
Sonic Healthcare ‐ Overview Global medical diagnostics service provider Top‐3 market position in laboratory medicine in 8 countries Australia #1 UK/Ireland #1 New Zealand #2 USA #3 Belgium #2 Australian radiology #2 Germany #1 or 2 Switzerland #3 Australian medical centres #1
Slide 15: Outlook
Outlook Consistent application of proven model ROIC and EPS accretion Market share gains in major markets Cost control and efficiency gains Leverage existing infrastructure for synergies and earnings growth Prudent acquisition and expansion strategies Sonic in attractive industry – str
Slide 16: Thank You
SONIC HEALTHCARE Thank You
Sonic Healthcare — Shareholder Meeting (November 2012) on 6ix