Healius Limited · ASX:HLS
Healius — Primary Health Care — H1 FY2009 Earnings Presentation
18 slides from Healius's earnings presentation, Feb 9, 2009
Slide 1: Interim FY2009 Results
Interim FY2009 Results 6 Months Ended 31 December 2008 Investor Presentation 9 February 2009
Slide 2: Highlights
Highlights ■ Solid operating performance – EBITDA of $155m from continuing businesses – first full 6 month contribution from Symbion acquisition (completed March 2008) – margin improvement in all divisions on a like for like basis ■ Integration on track to realise targeted synergies of $95-105m by e
Slide 3: Summary Results
Summary Results ■ Current period reflects full 6 6 Months Ended 31 December 2008 2007 month contribution from $m $m Symbion Health acquisition Trading Revenue 660.8 148.3 ■ Realisation of synergies Operating EBITDA 155.0 59.0 commenced and on track ■ Symbion revenues retained Finance Costs (73.3) (2
Slide 4: Income Statement
Income Statement 6 Months Ended 31 December 2008 2007 $m $m Trading Revenue 660.8 148.3 Operating EBITDA 155.0 59.0 Depreciation & Amortisation (34.5) (11.3) Operating EBIT 120.5 47.7 Other Revenue 7.0 6.8 Finance Costs (73.3) (27.9) Profit Before Tax & One-Off Items 54.2 26.7 Income Tax (15.8) (6.1
Slide 5: Segment Analysis
Segment Analysis 6 Months Ended 31 December 2008 2007 $m $m TRADING REVENUE Medical Centres 122.5 79.1 Pathology 365.2 45.2 Imaging 162.2 12.6 Health Technology 22.5 18.5 Intersegment (11.6) (7.1) Total 660.8 148.3 EBITDA Medical Centres 65.9 48.0 Pathology 63.0 7.2 Imaging 26.6 3.8 Health Technolog
Slide 6: Segment Analysis
Segment Analysis Revenue 1H08 to 1H09 (excluding intersegment sales) Health Health Medical Technology Technology Centres Imaging Imaging Medical Centres Pathology Pathology EBITDA 1H08 to 1H09 Health Health Technology Technology Imaging Imaging Medical Pathology Centres Medical Centres Pathology 6
Slide 7: Medical Centres
Medical Centres 6 Months Ended 31 December 2008 20071 $m $m Trading Revenue 122.5 79.1 EBITDA 65.9 48.0 EBITDA Margin 53.8% 60.7% 1. 2007 reflects Primary businesses only (Symbion acquired March 2008) ■ Continued organic growth in medical centres – GP attendances in Primary large scale centres up 11
Slide 8: Medical Centres – Large Medical Centres
Medical Centres Large Medical Centres ■ Integration progressing well and ahead of expectation 55 ■ 14 Symbion centres merged into Primary 50 UPDATE centres 45 for current 40 – Doctor retention from the merged and target 35 Symbion sites remains strong at around 30 70% GPs (FTE) 25 ■ Symbion State of
Slide 9: Pathology
Pathology 6 Months Ended 31 December 2008 20071 $m $m Trading Revenue 365.2 45.2 EBITDA 63.0 7.2 EBITDA Margin 17.2% 16.0% 1. 2007 reflects Primary businesses only (Symbion acquired March 2008) ■ Merger of NSW based SDS and Laverty laboratories occurred in 2Q09 – Largest merger of pathology laborato
Slide 10: Pathology
Pathology ■ Automation of labs in Queensland (QML) and Western Australia (Western Diagnostics) now a focus for 2H09 ■ All Primary operations in Queensland, Victoria and ACT successfully merged with Symbion counterparts for full period ■ Pathology margin improvement to 17.2% (from 16.6% on like-for-l
Slide 11: Imaging
Imaging 6 Months Ended 31 December 2008 20071 $m $m Trading Revenue 162.2 12.6 EBITDA 26.6 3.8 EBITDA Margin 16.4% 29.5% 1. 2007 reflects Primary businesses only (Symbion acquired March 2008) ■ Significant structural change being implemented in business with some sites closed and headcount reduction
Slide 12: Imaging
Imaging ■ Structural change will and does involve disruption – Change is not easy for some – Industrial action in Victoria ■ A number of radiologists have moved to the Primary private practice model of care – ie from salary to normal performance fee for service ■ Implementation of technology update
Slide 13: Health Technology
Health Technology 6 Months Ended 31 December 2008 2007 $m $m Trading Revenue 22.5 18.5 EBITDA 6.9 5.7 EBITDA Margin 30.8% 30.7% ■ Strong revenue growth and EBITDA growth reflecting core growth in Medical Director and other software products ■ Hospital applications and sponsorship EBITDA steady in mo
Slide 14: Corporate Costs
Corporate Costs 6 Months Ended 31 December 2008 2007 $m $m Corporate Costs (7.4) (5.7) ■ Integration of Primary and Symbion senior management functions complete ■ Significant Symbion head office headcount reduction ■ Full run-rate of targeted $13m corporate synergies have been realised 14
Slide 15: One-Off Items
One-Off Items 6 Months ended 31 December 2008 Gross Tax Net $m $m $m Direct Restructuring Costs (3.5) (1.1) (2.4) Borrowing Costs Relating to Symbion Acquisition (excl. C&P) (24.1) (7.2) (16.9) Total One-Off and Restructuring Items (27.6) 8.3 (19.3) ■ As advised in FY08 results, transaction-related
Slide 16: Balance Sheet
Balance Sheet 31 30 31 As at December June December $m 2008 2008 2007 Current Assets 178 181 61 Goodwill & Intangibles 2,931 2,912 448 Assets Held for Sale - 1,286 - Non-Current Assets 419 422 698 Total Assets 3,528 4,801 1,206 Current Debt (1,498) (2,196) (539) Other Current Liabilities (210) (243)
Slide 17: Debt Position
Debt Position Facilities Available Drawn down $m 31 Dec 2008 $m Tranche A Syndicated 1,438 1,438 Secured Working Capital 100 63 Total Syndicated Facilities 1,538 1,501 ■ $780m Tranche B debt repaid in full during period ■ Primary has exercised its option to extend both its Tranche A and secured work
Slide 18: Summary
Summary ■ Solid operating performance – EBITDA of $155m from continuing businesses – first full 6 month contribution from Symbion acquisition (completed March 2008) – margin improvement in all divisions on a like for like basis ■ Integration on track to realise targeted synergies of $95-105m by end
Primary Health Care — H1 FY2009 Earnings Presentation on 6ix