Annual General Meeting24 November 2005

Dr Colin GoldschmidtCEO and Managing Director

Current Status

FY 2004/5 - Record financial resultsFY 2005/6 - Tracking to Sonic’s guidance range after 4 monthsService levels and reputation outstandingOrganic growth fuelled by strong global pathology and radiology demandPlatforms for growth in UK, German, USA marketsCompany in strong position to drive shareholder value into the future

Financial Year 2005 Highlights

20%Dividend (full-year)31%EPS21%Core* EPS40%Operating Cashflow34%NPAT33%EBITA33%Revenue

Growth2005 vs 2004

*Core = Before amortisation of intangibles

2005 Guidance Delivered

EBITA

Revenue

261245 - 260

1,3821,330 - 1,370

Actuals$M

Sonic Guidance$M

Sonic issued a profit upgrade in February 2005

Revenue Growth

33.3%1,037.41,382.4Total Revenue

Growth(%)

2004($M)

2005($M)

Acquisitions completed in FY 2005 – IPN, Endeavour Healthcare/Accord PathologyOrganic growth (non-acquisition) in 2005 ~7%CPL acquisition (30 September 2005) in USA will boost 2006 revenue growthStrong organic revenue growth ongoing

Sonic HealthcareAnnual Revenue

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

$M

Revenue ($M) 33 41 47 58 89 133 147 174 387 628 860 975 1,037 1,382 1,635

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006(F)

= Forecast 2006 Revenue

Sonic Healthcare Revenue Split

IPN5%

Pathology75%

Radiology20%

2006 Guidance

300 – 320

1,600 – 1,670

2006 Guidance$M

261

1,382

2005 Actuals$M

Growth%

18.8%EBITA

18.3%Revenue

Sonic tracking to 2006 guidance range after 4 monthsGrowth calculated using mid-point of 2006 guidanceIncludes full year of IPNIncludes CPL acquisition from 1 October 2005Assumes constant currency exchange rates

Dividends

$0.36$0.23$0.13

2005

$0.30$0.20$0.10

2004

20%15%30%

Change

Full Year DividendFinal DividendInterim Dividend

Dividend fully franked at 30%Dividend Reinvestment Plan currently suspended

Full-year dividend11 Year History

0

5

10

15

20

25

30

35

40

Centsper

Share

Dividend (cents) 3 4 5 9 14 15 17 20 25 30 36

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Core Earnings per Share

2.1

16.7

21.7

27.5

33.337.8

43.4

52.6

8.06.7 7.0

11.89.5

005

10152025303540455055

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

Cents per share

Core Earnings = Before amortisation of intangibles

10 Years Double-digit EPS Growth!

SHL - Core Earning per Share Growth (%)

14%19%

24%

42%

30%

21%

14% 15%

21%27%

0%

10%

20%

30%

40%

50%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Core EPS = Earnings per Share before Amortisation of Intangibles

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

31/0

1/90

31/0

7/90

31/0

1/91

31/0

7/91

31/0

1/92

31/0

7/92

31/0

1/93

31/0

7/93

31/0

1/94

31/0

7/94

31/0

1/95

31/0

7/95

31/0

1/96

31/0

7/96

31/0

1/97

31/0

7/97

31/0

1/98

31/0

7/98

31/0

1/99

31/0

7/99

31/0

1/00

31/0

7/00

31/0

1/01

31/0

7/01

31/0

1/02

31/0

7/02

31/0

1/03

31/0

7/03

31/0

1/04

31/0

7/04

01/3

1/05

07/3

1/05

Sonic HealthcareShare Price (Jan 1990 - Nov 2005)

Equity Raising / Share Purchase Plan

Successful capital raising of $225 million in October 2005Proceeds used to retire debt associated with CPL acquisitionPriced at $14.54, a 3.5% discount to prior day’s closing priceShare Purchase Plan

Opportunity for loyal shareholders to participate in equity raisingCurrently open, closes 1 December 2005Purchase price set at $13.99 per share (lesser of placement price and 3% discount to market)Maximum subscription per holder - $5,000

Senior syndicated debt facilityRe-negotiation under wayMore flexibility and head roomLower costs

Sonic now well placed to fund acquisitional growth

1997 1998 1999 2000 2001 2002 2003 2004 2005

Sonic Healthcare – International Expansion

United States2005

United Kingdom2002

Germany2004

Hong Kong2001

Australia1987

New Zealand1999

Sonic Core EPS performance

4

Sonic UK Pathology - History

Sonic acquires TDL in 2002 Sonic acquires Omnilabs in 2003Omnilabs merges into TDL in 2004TDL relocates to new laboratory facility in 2004Sonic/TDL secures major public-private partnership with UCLH in 2004UK Government decision to outsource pathology and radiology contracts from NHS to the private sector

UK Pathology - TDL

NHS outsourcing updatePathology outsourcing tenders delayed due to election and focus on radiology tenders and primary care outsourcingPathology tenders expected in first half 2006

TDL performing well in Harley Street marketTDL – UCLH joint venture progressing wellTDL referrals to Schottdorf successfully established

German Pathology - Schottdorf

Sonic acquired 56% interest in Schottdorf Group in 2004Schottdorf business achieved outstanding results in FY 2005Strong volume growth and efficienciesAcquisition earnout of €8.1 million paid in fullAcquisition opportunities in private pathology sectorEvolving opportunities in German hospital pathology market

Sonic – Germany Synergies

UK – Germany synergies already establishedEsoteric pathology specimens transported from TDL to Schottdorf dailyAdditional revenue to SchottdorfLower testing costs for TDLBetter service delivery and turnaround times

Acquisition opportunities in GermanyConsolidation of market with efficiency gainsSchottdorf infrastructure with Sonic’s financial backing

German Public Hospital PathologyRequires a combined Sonic-Schottdorf approachA substantial opportunity

Sonic’s Experience in Germany

Excellent impression of German business market Similar business culture and standards

Strong legal and accounting systemsNo major legislative, tax or legal hurdles

LanguageNot an issueEveryone speaks excellent English!

Financing the transactionSome difficulty in 2004German banks had tightened exposure to mid-sized businessesANZ Bank played a key role in refinancing the leveraged positionDresdner Bank joined and also provided debt funding for the deal

Formality – a steep learning curve for Australians!Investment has performed well

Clinical Pathology Laboratories (CPL)

Sonic acquired 82% of CPL on 30 September 2005 for ~US$312 millionCPL is the largest regional independent laboratory in the USACPL’s core market is Texas, with newly established markets in Ohio and Virginia (Washington DC area)Annual revenue of ~US$190 M (~A$250 M) per annum CPL has a proven, experienced and committed management teamDiverse and loyal customer base15 year history of strong growthCPL has a unique doctor-focused operating model Sonic and CPL have very similar cultures and values

CPL offers a unique and compelling platform for Sonic in the US

CPL History

1948 – 1989 Forerunner of CPL, Austin pathologist group1990 – 1997 Expansion into San Antonio, Dallas1999 Acquisitions of Seguin Labs and Waco Medical Group Lab2000 Acquisitions of labs in Houston, Dallas, Denton, Victoria2001 CPL recapitalises with entry of private equity fund2002 Expansion into Oklahoma, Arkansas, Louisiana2003 Acquisition of labs in Ohio and Virginia2004/5 Further small acquisitions in South West and Ohio

CPL has shown strong organic growth over the past 15 years

CPL Geographic Markets

CPL South West• CPL’s core market• Texas, Oklahoma, Arkansas, Louisiana• South West laboratory market estimated at US$1.3 billion annually• CPL has around 15% share of Texas market (population 22 million)• Major referrals from Austin, Dallas and San Antonio• Extensive network of local pathologist relationships• Strong and recognised reputation for excellent customer service

CPL Mid-AtlanticAcquisition of Fairfax Medical Laboratories, Chantilly, VirginiaFull service laboratory, medium sizeServices local area, including Washington D.C.Expansion opportunities in D.C., Baltimore and other areas

CPL Mid-WestAcquisition of Pathology Laboratories, Inc (PLI), Toledo, OhioFull service laboratory, medium sizePotential to service Detroit, Cleveland, Chicago

CPL Management

CPL has an experienced and dedicated management team, committed to growing the business with SonicDr Robert Connor, M.D., Chairman, CEO, Medical Director

Qualified and practising pathologistBecame Chairman and CEO of CPL in 1990Has driven the medical leadership model of CPL – both pathologists and clinicians

Mr David Schultz, B.S.B.A., President, Chief Operating OfficerLong-standing career in laboratory managementHighly respected management profile in US laboratory industry

Dr Connor and Mr Schultz have worked together at CPL for 16 years and are the architects of CPL’s unique strategyCPL management have a track record of strong growthCPL’s management culture and operating model are critical differentiators in the independent pathology sector

Ownership Structure

Initial equity structure: Sonic 82%, CPL management 18%Non-Sonic shareholders

Largest shareholders: Dr Robert Connor (CEO) and Mr David Schultz (COO)Other minority shareholders include Pathologists and senior managers

Sonic will move progressively to acquire 100% of CPL over a 3 year period (2009-2012), using a mechanism geared to EBITDASignificant incentive for CPL management to continue to drive growth and profitability of the business

Corporate Values and Operating Models

Sonic HealthcareSonic Healthcare CPLCPLMedical practice / Medical leadershipRespect & honestyResponsibility & accountabilityPersonalised service for DoctorsCommit to service excellenceFederation model

Pathologist interaction with cliniciansUncompromising integrityAccountabilityFocus on the physicianService comes first“Franchise Model” by region

Sonic Healthcare and CPL are “like-minded” organisations

The United States Pathology Market

The US is the largest pathology market in the worldUS$40 billion revenue in 2003

Laboratory testing is linked to the entire US healthcare systemHospital care, GP and specialist services, nursing homes, home healthcare etc

Pathology expenditure in the US~3.0% of overall US health services expenditureEstimated future growth rates of approximately 7% p.a. through to 2013

Total public and private laboratory revenue. Washington G2 Reports

30.7 32.9 35.4 38.1 40.1 43.046.1

49.452.9

56.660.7

65.069.6

74.579.8

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Laboratory industry revenueLaboratory industry revenue

CAGR = 7.1%

US Laboratory Market Segments

Other labs7%Physician

owned labs7%

Hospital based labs

54%Independent clinical labs

32%

Laboratory Industry Shareby Test Revenue, 2003

Laboratory Industry Shareby Test Revenue, 2003

Source: Washington G2 Reports

Hospital Labs………………...~8,500Independent Labs……….......~5,000Physician Office Labs….…~110,000Other Labs…………………..~58,000

Independent Laboratory Sector:Revenue Trend

9.510.6

11.712.4

13.0

3

6

9

12

15

1999 2000 2001 2002 2003

US$

B

The independent laboratory sector grew atan average of 6.9% per annum (1999 – 2003)

Source: Washington G2 Reports

The Sonic Healthcare Federation

• Group purchasing• Benchmarking• IT synergies• E-Health• Shared marketing• Quality Control• Management Training• Inter-referrals• Lab design / Workflow• Work exchange• Financial strength• Collegiate interaction

Local identity preservedManagement autonomyCentral synergy resource

Sonic’s Australian Model

Global Federation Model

Australia / New Zealand

North AmericaEurope / UK

Sonic Head Office

Sonic Board of Directors

Mr Barry Patterson (Chairman)Dr Colin Goldschmidt (Managing Director)Mr Chris Wilks (Finance Director)Mr Peter CampbellMr Colin JacksonDr Philip DuboisDr Hugh ScottonMr Lou Panaccio

Company Secretary – Mr Paul Alexander

Sonic Board of Directors

Non-executive DirectorsMr Barry Patterson – ChairmanMr Peter Campbell Mr Lou Panaccio

Executive DirectorsDr Colin Goldschmidt – Managing DirectorMr Chris Wilks – Finance DirectorMr Colin Jackson – Commercial Director, Chairman IPNDr Philip Dubois – Chair Sonic Radiology Executive, Radiology industryDr Hugh Scotton – Radiologist, Medical profession

Sonic Healthcare ModelA Healthcare companyMedical Leadership philosophy~300 pathologists, ~150 radiologistsDoctors are our customers

IPN

Sonic holds 72% interest in IPNIPN results consolidated into Sonic from 26.8.04IPN acquisition of Endeavour Healthcare

Completed on 26.11.0418 Medical Centres acquired (Sydney and Perth)Integration into IPN structure successfulLoan of $8 million from Sonic to fund the acquisition

Sonic - IPN collaborationPathology referrals for Sonic and sub-tenancy income for IPNBanking, purchasing, marketing etcSonic executives join IPN Board

IPN delivers maiden profit in FY 2005Appointment of new CEO imminent

Mr Ralph Shreeve – outgoing CEOMr Colin Jackson – IPN Chairman

New Sonic “Super Lab” – SydneyDHM Central Lab / Sonic Head Office

RationaleDHM and Sonic moved into current building in 1994DHM’s revenue has increased 5-fold since 1994Sonic’s revenue has increased from ~$50 million to ~$1,600 million since 1994Space issues for both DHM and Sonic Headquarters

RequirementsFacility to satisfy growth needs for next 20 yearsFacility to support next major phase of synergy / centralisationFacility to support Sonic Healthcare head office

BuildingTo be located at rear of current facility (95 Epping Road / Giffnock Avenue)17,000 sqm state-of-the-art laboratory and office space (80% increase on current)5 levels of lab and office, 3 levels of underground car parkingExpected cost - $70 millionScheduled commencement early 2006Scheduled completion second half of 2007Existing building will be leased to outside parties

Commit to service excellence

Treat each other with respect and honesty

Demonstrate responsibility and accountability

Strive for continuous improvement

Maintain confidentiality

Sonic Core ValuesHow we should behave

Sonic Foundation PrinciplesWhat our customers want

Technical and Operational Excellence

Professional and Academic

Expertise

Medical PracticeMedical Leadership

Satisfying Patient Needs

Personalised Service for

Doctors

Future

Sonic Australian businesses in strong positionExcellent pathology and radiology businessesExtensive infrastructureOutstanding relationships with medical profession

Strong offshore growth prospectsCPL opens a major new growth market in the USATDL/Sonic UK set for extended growth pathSchottdorf tracking wellAcquisitions in Germany, Europe and USA

Sonic well-placed to drive superior shareholder value

Thank you