Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — H1 FY2006 Earnings Presentation
23 slides from Sonic Healthcare's earnings presentation, Feb 23, 2006
Slide 1: Interim Results
Interim Results | For the Half-year ended:31 December: 2005 Dr.Colin- Goldschmidt © CEO and Managing Director 23 February 2006
Slide 2: EBITA up 22%, Net Profit up 29%
~EBITA up 22%.” eo. Net Profit up.29% @.-EPS up 24% e .Full-year.guidance unchanged “@ Sonic tracking to guidance after:7-months e Sonic operations performing well “@. Streng outcomes from large Australian businesses e .Sonic’s UK, German and USA operations solid Ponts, HEALTHCARE
Slide 3: 2006 Guidance
2006 Guidance ($M) EBITA : 300 — 320 SONIC HEALTHCARE
Slide 4: Total Revenue growth of 17.3%
6 Months ended 6 Months ended 34.12.05 34.12.04 ($M) ($M) (%) Total Revenue “17.3% SONIC HEALTHCARE 788.7. |> 6721- Revenue growth.of 17.3% : «-. Global organic revenue growth (excluding acquisitions) ~ 7% e - CPL (USA) acquisition on.1. October 2005 «.- Australian pathology and radiology growth.in
Slide 5: Pa . IPR
Pa . IPR SON'S, HEALTHCARE
Slide 6: Revenue 2002-2006 forecast
2002 2003 2004 2005 2006(F) © Revenue ($M) 860 975 1,037 1,380 1,635 SONIC HEALTHCARE Forecast 2006 Revenue = $1,600 - $1,670 million
Slide 7: EBITA, NPAT, EPS and cash generation
6 Months ended 6 Months ended 34.12.05 31.12.04 % EBITA ($000) 147,124 120,739 21.9% NPAT ($000) 83,195 64,278 29.4% EPS (cents) 29.0 23.4 23.9% Cash Generation ($’000) 120,086 96,643 24.3% SONIC HEALTHCARE conform with
Slide 8: EBITA margin growth
6 Months ended 6 Months ended 31.12.05 31.12.04 ° Margin growth of 70. basis points, compared with previous corresponding period Revenue growth with marginal profit 7 Accord Pathology acquisition and mergers, with. DHM (Sydney) and Ciinipath (Perth) Extraction of synergies . Efficiency. improvements
Slide 9: Interim Dividend
2005 Movement (8) (8) % Interim Dividend 0.46 0.13 1) 18.4% Dividend fully franked at 30% . Record Date 6 March.2006 Payment Date 20 March.2006 Dividend Reinvestment Plan remains suspended | SONIC HEALTHCARE
Slide 10: Balance sheet set for growth
e . Increased headroom (~$250 million) «Lower margins “e.-More flexible covenant structure e _-Take out of CPL bridge facility « . Gearing ratios improved.as result of capital raising and earnings growth aa oo oo e.. Balance sheet set for growth Fonts, HEALTHCARE
Slide 11: Capital raising
ceme e . 15,474,553 shares issued @ $14.54 on 25 October 2005 s..».$225 million raising : oa e ».Placement price set at 3% discount to market e.. Shareholder Purchase Plan #... 2,079,869 shares issued @ $13.99 on 8 December 2005 ¢ $29,097 million raising ¢_ Purchase price set at lesser of placement
Slide 12: Australian operations: NZ, radiology, IT, Medicare
eSmailer NZ labs renegotiating contracts with District Health Boards e - Radiology Queensland X-Ray solid performance «Sonic's new MRI licences (Queensiand X-Ray and SKG Radiol coy) : successfully launched ~ © Sonic IT «--Clinipath. and Bunbury Pathology (Western Australia) transition to Sonic's” “p
Slide 13: New facility for DHM and Sonic headquarters
Space issues for both DHM and Sonic Headquarters «Requirements ; « Facility to satisfy. growth needs for ‘next 20 years. Facility to support next phase of synergy / centralisation Facility to support Sonic Healthcare head office e. Building SONIC HEALTHCARE To be located at rear of current facility
Slide 14: IPN update
* Smooth transition into organisational infrastructure «Has “hit the ground running”! ve Strong positive reception from IPN doctors and staff ~-@--IPN performing well @ . Profitable with. significant growth prospects « Half year ’06 revenue $49 million (up.23%) © Half year ‘06 EBITDA $6.4 million, N
Slide 15: Board and management attendees
Dr Malcolm Parmenter (CEQ) Mr Mark Compton Ms Verilyn Fitzgerald Mr-Ray Walker: Dr Colin-Goldschmiat — Sonic -Mr Chris Wilks ~ Sonic Mr-Paul Alexander— Sonic UN OO BON Ms Lesley Kennedy (Company Secretary) SONIC HEALTHCARE
Slide 16: TDL UK synergies and NHS review
FDL to < chottdor delive ng sy @ ~ Sonic and TDL working on a. range of other synergies ~ Purchasing and Warehouse management IT ~ Lab design, workflow Benchmarking e NHS outsourcing — Ongoing review of NHS pathology SONIC HEALTHCARE Independent Review of NHS Pathology Services ~ Lord Carter of Cole
Slide 17: Schottdorf Germany synergies
e.. Sonic synergies : «Esoteric pathology specimens. referred from TDL to Schottdorf daily «.. Additional revenue to Schottdorf * : oe. Lower testing costs for TDL e.. Better service delivery and turnaround times e.. Acquisition-opportunities in-Germany e ~ Consolidation of market with efficiency ga
Slide 18: CPL acquisition USA
Sonic acquired 82%_of CPL from 1. October 2005 for S121 million CPL business performing strongly ; : Earn out of $20.025 million likely to be paid in full (~June’2006) CPL offers Sonic a unique growth platform in-world’s largest market Sonic/CPL considering a range of expansion opportunities : SONIC
Slide 19: Commitment to service excellence
Commit to. service excellence "Treat each other with respect and honesty - Demonstrate responsibility and accountability : Strive for continuous improvement : Maintain confidentiality SONIC HEALTHCARE
Slide 20: Medical practice model
erome Medical Practice Medical Leadership Technical and. .Professional..|. Personalised Operational. and Academic.) -Service for... Excellence . Expertise...) .. —Doctors: Satisfying Patient Needs SONIC HEALTHCARE
Slide 21: Leadership and values programs within Sonic
® e © SONIC HEALTHCARE within Sonic Headed by Dr Gloria Armeliin ~ e.Ms Rosemary Cooper, Ms Jillian Stevens, Ms Ingrid Slater. Programs to be delivered throughout Sonic. practices «Core Values Foundation Principles Leadership Training Excellence. in Service - “We Take It Personally’ Emotional intell
Slide 22: Summary: growth prospects
-e Extensive infrastructure / -@- Outstanding relationships with medical-profession “e Strong offshore growth prospects ; e CPL opens. a major new growth market in.the USA e -TDL/Sonic UK set for extended growth path e ~Schottdorf tracking well e Acquisitions in-Germany, Europe and North America © S
Slide 23: Thank you
Thank you = SONIC HEALTHCARE