Healius Limited · ASX:HLS
Healius — Primary Health Care — FY2010 Earnings Presentation
16 slides from Healius's earnings presentation, Aug 17, 2010
Slide 1: FY2010 Results
FY2010 Results 12 Months Ended 30 June 2010 Investor Presentation 17 August 2010
Slide 2: Financial Summary
Financial Summary FY2010 FY2009 Revenue ($m) 1,296.8 1,336.6 EBITDA ($m) 331.0 355.3 EBITDA Margin (%) 25.5 26.6 Net Profit After Tax ($m) 132.0 108.5 EPS (cps) 27.8 28.7 Final dividend (cps) 10.0 7.0 2
Slide 3: Income statement
Income statement Year ended Year ended Six months All amounts in $m 30 June 2010 30 June 2009 31 Dec 2009 Trading revenue 1,296.8 1,336.6 655.9 EBITDA 331.0 355.3 175.0 Depreciation & Amortisation (72.9) (67.8) (35.2) Finance costs (77.8) (128.1) (37.2) Income tax (46.1) (31.3) (24.9) Net profit bef
Slide 4: Segment analysis
Segment analysis Year ended Year ended Six months All amounts in $m 30 June 2010 30 June 2009 31 Dec 2009 Revenue Medical Centres 259.0 252.0 131.8 Pathology 720.7 737.4 363.5 Imaging 289.1 314.4 147.1 Health Technology 46.4 49.4 24.1 Corporate 9.8 7.3 3.2 Intersegment (28.2) (23.9) (13.8) Total 1,2
Slide 5: Operating cash flow
Operating cash flow ■ Full conversion of EBITDA into cash flow Gross operating cash to EBITDA $m Cash flow from Operating Activities 225.0 Add back: ‐ Interest paid 62.1 ‐ Income Tax paid 28.4 ‐ Acquired Symbion provisions paid 16.0 Gross Operating cash flow 331.5 EBITDA 331.0 Ratio of Gross Operati
Slide 6: Synergies from Symbion acquisition
Synergies from Symbion acquisition Minimum Minimum All figures in $m achieved estimated Pathology 48 39 Medical Centres 20 24 Imaging 14 19 Corporate 13 13 95 95 ■ Pathology labour and consumable synergies exceeded ■ Medical Centres less backfilling of Symbion sites than anticipated ■ Imaging radiol
Slide 7: Medical Centres
Medical Centres Year ended Year ended Six months 30 June 2010 30 June 2009 31 Dec 2009 Trading Revenue 259.0 252.0 131.8 EBITDA 142.4 140.9 73.8 EBITDA Margin (%) 55.0 55.9 56.0 ■ Underlying organic growth 10% ■ 53 large scale centres now open ■ Doctor recruitment progressing well ■ GP and other ser
Slide 8: Medical Centres – underlying organic growth
Medical Centres – underlying organic growth $m EBITDA – 2009 140.9 Less: Federal Budget funding cuts (4.1) Accounting changes – expensing acquisition costs (1.8) Reduction in contribution from clinical trials (5.0) (10.9) 130.0 FY2010 organic growth ~ 10% 12.4 EBITDA – 2010 142.4 ■ GP Medicare Volum
Slide 9: Pathology
Pathology Year ended Year ended Six months 30 June 2010 30 June 2009 31 Dec 2009 Trading Revenue 720.7 737.4 363.5 EBITDA 135.3 145.2 73.4 EBITDA Margin (%) 18.8 19.7 20.2 ■ 2nd round of Federal Govt Medicare rebate cuts effective 1 November 2009 – Estimated annual adverse impact of approx $45m in r
Slide 10: Imaging
Imaging Year ended Year ended Six months 30 June 2010 30 June 2009 31 Dec 2009 Trading Revenue 289.1 314.4 147.1 EBITDA 42.6 54.8 23.0 EBITDA Margin (%) 14.7 17.4 15.6 ■ Revenue/EBITDA and margins impacted by – Increased competition – The pricing impact of competition (increased bulk‐billing) – Indu
Slide 11: Health Technology
Health Technology Year ended Year ended Six months 30 June 2010 30 June 2009 31 Dec 2009 Trading Revenue 46.4 49.4 24.1 EBITDA 20.0 16.8 9.7 EBITDA Margin (%) 43.1 34.0 40.2 ■ EBITDA increase to $20m with increased margin to 43.1% ■ Renewal rates high for all software products ■ High margin products
Slide 12: Corporate
Corporate Year ended Year ended Six months 30 June 2010 30 June 2009 31 Dec 2009 Revenue 9.8 7.3 3.2 Expenses (19.1) (9.7) (8.1) EBITDA (9.3) (2.4) (4.9) ■ Revenue includes: – Profit on sale of investments – Distribution from Pan liquidators – Interest income ■ Expenses include: – Non cash option ex
Slide 13: Balance Sheet
Balance Sheet As at 30 June 2010 31 Dec 2009 30 June 2009 Current Assets (excluding Cash) 181 190 189 Goodwill & Intangibles 3,075 3,001 2,968 Non‐Current Assets 414 413 399 Total Assets 3,670 3,604 3,556 Net Debt (Debt less Cash) 979 969 1,210 Other Current Liabilities 171 151 183 Non‐Current Liabi
Slide 14: Debt Position
Debt Position $m 30 June 2010 Secured Syndicated Facility 900 Secured Working Capital Facility 100 Bilateral Facilities 95 Total Syndicated Facilities 1,095 Net Debt at 30 June 2010 979 ■ Primary has extended its secured facilities for three years to December 2012 – Syndication well supported and si
Slide 15: Outlook
Outlook ■ Medical Centres – 15% EBITDA Growth benchmark for FY2011 – Backfilling of centres with GP and other services, new centre rollout to continue ■ Pathology – Further incremental cost savings – Aggressively competing for revenue ■ Imaging – Productivity and service improvements via fee for ser
Slide 16: Important Notice
Important Notice The information provided in this presentation is based on the ordinary earnings of Primary Health Care Limited (the Company) as disclosed in the Appendix 4E released to the ASX on 17 August 2010. It contains certain forward-looking statements. The words “expect”, “forecast”, “estima