Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — Investor Presentation (June 2010)
10 slides from Sonic Healthcare's investor presentation, Jun 1, 2010
Slide 1: Investor Briefing
Investor Briefing 1 June 2010 Colin Goldschmidt CEO, Sonic Healthcare
Slide 2: Earnings Update 20 May 2010
Earnings Update 20 May 2010 Sonic’s original earnings guidance for FY 2010 10-15% NPAT growth on base of A$315 million Growth on constant currency basis Sonic’s updated earnings forecast for FY 2010 ~A$315-320 million NPAT (constant currency) Expected shortfall on original guidance ~A$
Slide 3: FY 2010 Earnings Shortfall relative to Guidance
FY 2010 Earnings Shortfall relative to Guidance NPAT shortfall of ~A$30-35 million Queensland pathology ~A$12 million Australian pathology market volumes ~A$10 million Radiology ~A$ 8 million Based on actual results to April 2010 and forecasts to June 2010
Slide 4: Queensland Pathology
Queensland Pathology Billing policy changes to offset Government fee cuts Uniform patient co-payments (excluding pensioners) Temporary significant GP market share loss as a result Initially successful with referrers’ support Patient resistance and competitor activity undermined strategy
Slide 5: Australian Pathology Market
Australian Pathology Market National market volume growth abnormally low Since November 2009 Government fee cuts Normal market growth had been expected for FY 2010 guidance Likely causes: publicity around billing changes, concerns about patient co-payments Australian Medicare volume growth
Slide 6: Sonic Australian Pathology
Sonic Australian Pathology Sonic’s Australian volume growth (excl. Queensland) Low positive growth March quarter vs negative market growth (minus 6.8%) Suggests market share gains Sonic pathology – average fee per patient Fee cuts have been offset (excl. Queensland) – evidenced by average
Slide 7: Radiology
Radiology Sonic radiology performance against FY 2010 guidance Shortfall represents loss of expected earnings growth Flat earnings growth now expected for H2 FY 2010 vs H2 FY 2009 Competition has impacted volumes and pricing Volume impacts Some market share loss to bulk-billing competito
Slide 8: Dividend – FY 2010
Dividend – FY 2010 Final dividend per share expected to be at least at prior year’s level Rationale No loss of profits in FY 2010 on constant currency basis Temporary nature of profit impacts
Slide 9: FY 2011 Guidance
FY 2011 Guidance NPAT growth of 10-15% on reported FY 2010 NPAT Reported FY 2010 NPAT expected to be A$290-295 million A$290-295 reported = A$315-320 million constant currency FY 2011 guidance on constant currency basis (i.e. using FY 2010 rates) Guidance excludes new acquisitions Assume
Slide 10: Thank You
SONIC HEALTHCARE Thank You