Annual Report - Sonic Healthcare
Annual Report
2020
ABN 24 004 196 909
Corporate Directory
DIRECTORS Prof. M.R. Compton | Chairman Dr C.S. Goldschmidt | Managing Director Mr C.D. Wilks | Finance Director Prof. S. Crowe Dr P.J. Dubois Mr N. Mitchell Mr L.J. Panaccio Ms K.D. Spargo Dr E.J. Wilson
COMPANY SECRETARY Mr P.J. Alexander
PRINCIPAL REGISTERED OFFICE IN AUSTRALIA Level 22, Grosvenor Place, 225 George Street, Sydney New South Wales, 2000, Australia P 61 2 9855 5444 F 61 2 9878 5066 W E contactus@.au
SHARE REGISTRY Computershare Investor Services Pty Limited Level 5, 115 Grenfell Street, Adelaide, South Australia, 5000, Australia. P 1300 556 161 (Within Australia) P 61 3 9415 4000 (Outside Australia) F 1300 534 987 (Within Australia) F 61 3 9473 2408 (Outside Australia) W E contact
AUDITOR PricewaterhouseCoopers
SOLICITORS Allens Gilbert+Tobin
BANKERS Australia and New Zealand Banking Group BNP Paribas Commerzbank Commonwealth Bank of Australia Cr?dit Industriel et Commercial DNB Asia HSBC JPMorgan Chase Bank Mizuho Bank MUFG Bank National Australia Bank Westpac Banking Corporation
STOCK EXCHANGE LISTINGS Sonic Healthcare Limited (SHL.AX) shares are listed on the Australian Securities Exchange. Sonic Healthcare Limited also has a Level 1 sponsored American Depositary Receipt (ADR) facility managed by BNY Mellon (the `Depositary'). Sonic Healthcare Limited's ADRs are traded under the code SKHHY.
Verification of Unaudited Information in this Annual Report
Unaudited information in this Annual Report comprises all information included in the Annual Report other than the Financial Report, the Remuneration Report within the Directors' Report, the Directors' Declaration, the Independent Auditor's Report and the Auditor's Independence Statement.
The integrity of the unaudited information has been verified as materially accurate and/or reasonable using the following processes: Financial information in the unaudited information has been tied to the current and/or previous audited
Financial Reports, or has been gathered using the same reporting and consolidation process as used for the Financial Report (which includes several review layers), or has been sourced from third parties. The unaudited information has been reviewed and approved by the Managing Director and Finance Director individually, the Audit Committee, and the Board as a whole. The independent auditor has read the unaudited information and has considered whether the information is materially inconsistent with the Financial Report or their knowledge obtained in the audit, or otherwise appeared to be materially misstated. The auditor had nothing to report in this regard.
Forward-looking statements and opinions included in the unaudited information (which may be identified by the use of terminology including `expects', `believes', `targets', `likely', `should', `could', `intends', `aims', `is estimated' or similar expressions) are not certainties, guarantees or predictions of future performance. Readers are cautioned not to place undue reliance on forward-looking statements or opinions.
Cover Phlebotomist/pathology collector Natasha Ta from Clinpath Pathology, South Australia, collecting a COVID-19 specimen from a patient
Inset Pathologists Dr Peter McQuillan and Dr Mukta Rayoo from Melbourne Pathology consulting on a diagnosis
Contents
Chairman's Letter
03
CEO Report
04
Financial History
07
Directors' Report
10
Auditor's Independence Declaration
54
Corporate Governance Statement
55
Financial Report
68
Directors' Declaration
152
Independent Auditor's Report to the
Members of Sonic Healthcare Limited
153
Shareholders' Information
159
Sonic Healthcare produced a net profit for the 2020 financial year of A$528 million, on revenues of A$6.8 billion.
Chairman's Letter
Dear Fellow Shareholders,
On behalf of Sonic Healthcare's Board of Directors, I am pleased to present the Company's 2020 Annual Report.
Sonic Healthcare produced a net profit for the 2020 financial year of A$528 million, on revenues of A$6.8 billion. Despite the impacts of the COVID-19 pandemic on the 2020 financial results (which are described elsewhere in this Report), the Board has been able to support shareholders with a modest 1.2% increase in total dividends per share (to A$0.85) for the year, continuing our progressive dividend policy.
Sonic's balance sheet is very strong, underpinning the Company's operations and ready to support future growth. Robust cash generation in 2020 facilitated a reduction in net interest bearing debt of A$277 million (after payments for acquisitions and dividends), resulting in Sonic's gearing being well below our long-term average. In fact, the ratio of Net Debt to EBITDA was at the lowest level in 20 years, a solid position to be in during these uncertain times.
In relation to Board renewal, development and diversity, a number of important changes have occurred in the last twelve months. The Board selected Mr Neville Mitchell as the new (from 1 October 2019) Chair of the Audit Committee, succeeding Mr Lou Panaccio, who retired from the Chair position he has held for almost 10 years. Mr Panaccio will remain a member of the Committee and has worked closely with Mr Mitchell to ensure a seamless transition.
Professor Suzanne Crowe AO joined the Board from 6 April 2020 as an independent, Non-executive Director. Prof. Crowe is a qualified medical specialist in Infectious Disease. Whilst Suzanne had agreed to join our Board several months earlier, the timing of her commencement could hardly have been more beneficial, with her insights into the COVID-19 pandemic of great utility to the Board and the Company over the last six months. Suzanne's appointment was consistent with, and continues to enrich, Sonic's Medical Leadership culture and strategy.
Dr Philip Dubois, who has been an Executive Director on the Board since 2001, retired from his executive position with the Company in June 2020. Philip is therefore now considered a Non-executive Director. He has advised that he will retire from the Sonic Board by the end of his current three year term (November 2022).
SONIC HEALTHCARE | ANNUAL REPORT 2020
Sonic's Board now comprises seven Non-executive Directors, six of whom are considered independent, plus two Executive Directors (being the Chief Executive Officer and the Chief Financial Officer). The Board includes a pathologist, a radiologist, a medical specialist and a registered general medical practitioner, in keeping with our Medical Leadership culture.
Prof. Crowe's appointment has also resulted in the Board achieving its gender diversity objective to have at least 30% female membership (now at 33%, up from 25% previously).
Board renewal, development and diversity remain areas of active consideration for the Sonic Board.
As is the case each year, I heartily recommend that you read Sonic's latest Corporate Responsibility Report, available on our website. This Report describes how Sonic cares for its people, the environment, its own communities and communities in acute need. Sonic's standing as a socially responsible company continues to be recognised by external parties, including through ongoing inclusion in the FTSE4Good Index Series. The Board is very proud of Sonic's efforts in these critical areas, and hopes that shareholders feel this pride as well.
The COVID-19 pandemic has challenged and continues to challenge Sonic's leaders, the doctors and other healthcare professionals we serve, their patients and our staff in ways that are without precedent. The response from all parts of the organisation has been nothing short of magnificent. Sonic's Medical Leadership culture and values that underpin all we do each day have risen to the fore, and our people continue to play a crucial role in combatting the pandemic. I have never been more proud to be part of this Company, and I thank every one of our 37,000 staff for their courage, dedication and expertise. I include in this expression of thanks the directors of the Company who have shown their usual great dedication, diligence and expertise in a rapidly changing environment with many unknowns as the pandemic unfolded. Their skill and leadership is also to be commended.
I would also like to thank you, our shareholders, for your continuing support of the Company and the Board.
Professor Mark Compton AM Chairman
03
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- annual report sonic healthcare
- how is covid 19 changing the retail consumer
- updated may 15 2020
- report 9 impact of non pharmaceutical interventions npis
- united states department of agriculture coffee world
- price factors and predictions 2021 general steel
- 3d printing trends 2020 hubs
- seasonal climate forecast october december 2021
Related searches
- new york life annual report 2018
- find annual report for company
- blackrock annual report 2018
- amazon annual report 2019
- simple annual report example
- annual report for starbucks 2017
- annual report for public company
- annual report of any company
- amazon annual report 2018 pdf
- nonprofit annual report template
- dow annual report 2018
- michigan annual report instructions