Sonic Healthcare : Half Yearly Report and AccountsOpens in a new Window

18 February 2021

The Manager - Listings

Australian Securities Exchange Limited Exchange Centre

20 Bridge Street SYDNEY NSW 2000

Via electronic lodgement

Dear Sir / Madam,

RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

Attached in accordance with Listing Rule 4.2A is the consolidated financial report, directors' report and auditors' review report for Sonic Healthcare Limited for the half-year ended 31 December 2020.

The release of this announcement was authorised by the Board of Sonic Healthcare Limited.

Yours faithfully

Sonic Healthcare Limited

Paul Alexander Company Secretary

SONIC HEALTHCARE LIMITED ABN 24 004 196 909 • LEVEL 22, GROSVENOR PLACE • 225 GEORGE STREET • SYDNEY • NSW 2000 • AUSTRALIA

LOCKED BAG 145 • NORTH RYDE • NSW 1670 • TELEPHONE[phone] • FACSIMILE [phone]

Sonic Healthcare Limited

ABN 24 004 196 909

ASX APPENDIX 4D AND HALF YEAR REPORT - 31 DECEMBER 2020

Lodged with the ASX under Listing Rule 4.2A

This information should be read in conjunction with the 2020 Annual Report.

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Sonic Healthcare Limited

ASX Appendix 4D 31 December 2020

RESULTS FOR ANNOUNCEMENT TO THE MARKET

For the six months ended 31 December 2020

Financial Results $'000

Revenue from ordinary activities

Profit after tax from ordinary activities attributable to members

Dividends

Cents per share

Interim dividend

Interim dividend franked amount per security

Six months

ended

31.12.20

Statutory

% Change

4,432,233 32.7%

677,635 166.4%FY2021

FY2020

% Change

36¢ 10.80¢

34¢ 5.9%

10.20¢ 5.9%The record date for determining entitlements to the interim dividend will be 10 March 2021. The interim dividend will be paid on 24 March 2021. The 2021 interim dividend includes no conduit foreign income. The Company's Dividend Reinvestment Plan remains suspended for this dividend.

Explanation of results

Six months
ended	Six months	Constant	31.12.20
31.12.20	ended	Six months	Currency	Statutory
$'000	Constant	31.12.20	ended	versus	versus
Currency*	Statutory	31.12.19	31.12.19	31.12.19
Revenue	4,488,115	4,432,233	3,340,586	34.4%	32.7%
Earnings before interest, tax, depreciation and
intangibles amortisation (EBITDA)	1,320,551	1,306,854	690,027	91.4%	89.4%
Depreciation	(280,290)	(278,547)	(258,141)	8.6%	7.9%
Earnings before interest, tax and intangibles
amortisation (EBITA)	1,040,261	1,028,307	431,886	140.9%	138.1%
Amortisation of intangibles	(35,015)	(34,543)	(31,981)	9.5%	8.0%
Net interest expense	(52,604)	(49,756)	(52,516)	0.2%	(5.3)%
Income tax attributable to operating profit	(256,634)	(254,596)	(85,136)	201.4%	199.0%
Net (profit) attributable to minority interests	(11,929)	(11,777)	(7,858)	51.8%	49.9%
Net profit attributable to Sonic shareholders	684,079	677,635	254,395	168.9%	166.4%
Cash generated from operations	810,478	534,171	51.7%
Earnings per share
Basic earnings per share (cents per share)	143.4	142.1	53.6	167.5%	165.1%
Diluted earnings per share (cents per share)	142.2	140.9	53.3	166.8%	164.4%

% Change 31.12.20

* For an explanation of 'Constant Currency' refer to 2(a) in the Commentary on Results.

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Sonic Healthcare Limited

ASX Appendix 4D 31 December 2020

COMMENTARY ON RESULTS

For the half year ended 31 December 2020

1. Headlines

•  Revenue growth of 33% to A$4.4 billion.

•  EBITDA growth of 89% to A$1.3 billion.

•  Net profit growth of 166% to A$678 million.

•  Sonic Healthcare continues to play a key role in combating the COVID-19 pandemic in its markets, whilst continuing to provide its usual essential healthcare services.

•  More than 18 million COVID-19 PCR tests have been performed to date in ~60 Sonic laboratories globally.

•  Sonic's 37,000 staff are unsung heroes, providing vital testing for their communities.

•  Significant revenue and earnings contribution from COVID-19 testing, leveraging existing infrastructure.

•  Base business revenue (ex-COVID testing) H1 FY2021 down 1% versus H1 FY2020 (Constant Currency).

•  Margin accretion in both laboratory and imaging divisions.

•  Strong balance sheet, with gearing at record low level and A$1.3 billion of available liquidity (pre-interim dividend).

•  Progressive dividend policy maintained, increase of 2 cents (6%) to 36 cents for the FY2021 Interim Dividend.

  2. Explanation of results

• (a) Constant currency

As a result of Sonic's expanding operations outside of Australia, Sonic is increasingly exposed to currency exchange rate translation risk i.e. the risk that Sonic's offshore earnings and assets fluctuate when reported in AUD.

The average currency exchange rates for the six months to 31 December 2020 for the Australian dollar ('A$', 'AUD' or '$') versus the currencies of Sonic's offshore earnings varied from those in the comparative period, impacting Sonic's AUD reported earnings ('Statutory' earnings). The underlying earnings in foreign currency are not affected.

As in prior periods, in addition to the statutory disclosures, Sonic's results for the half year have also been presented on a 'Constant Currency' basis (i.e. using the same exchange rates to convert the current period foreign earnings into AUD as applied in the comparative period, being the average rates for that period). This facilitates comparability of the Group's performance, by providing a view on the underlying business performance without distortion caused by exchange rate volatility, so that an assessment can be made of the growth in earnings in local currencies.

In preparing the Constant Currency reporting, the foreign currency elements of each line item in the Income Statement (including net interest expense and tax expense) are restated using the relevant prior period average exchange rate. There is only this one adjustment to each line item so no reconciliation is required.

The average exchange rates used were as follows:

31.12.20	31.12.19 and
Statutory	Constant Currency
AUD/USD	0.7232	0.6846
AUD/EUR	0.6123	0.6170
AUD/GBP	0.5536	0.5437
AUD/CHF	0.6592	0.6763
AUD/NZD	1.0729	1.0593
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