Slide 1: Unaudited Interim Group Results for the six months ended 31 March 2021
NETCARE LIMITED Unaudited Interim Group Results for the six months ended 31 March 2021
Slide 2: Overview
Overview 1 Emergence of a more contagious COVID-19 variant resulted in 2nd wave More efficient bed allocation despite 2 higher volume of COVID-19 patients admitted Netcare front line worker vaccinations 3 nearing completion 4 Resilient medical aid membership 5 Key strategic projects back on track St
Slide 3: Financial Overview
Financial Overview CASH & ADJUSTED NET DEBT/ INTERIM REVENUE EBITDA COMMITTED HEPS EBITDA DIVIDEND FACILITIES R10 081m R1 493m 27.3 cents 2.0x R6.6bn Suspension H1 2020:▼ 5.9% H1 2020:▼ 36.7% H1 2020: ▼ 61.9% H1 2020: 1.3x of interim dividend H2 2020:▲ 24.0% H2 2020: ▲654.0% H2 2020: ▲169.6% H2 2020
Slide 4: Operational Overview
Operational Overview NETCARE LIMITED 4
Slide 5: Key activity drivers
Key activity drivers TOTAL ACUTE MENTAL ACUTE PATIENT HOSPITAL1 HEALTH2 PRIMARY HOSPITAL1 DAYS PATIENT DAYS PATIENT DAYS CARE VISITS3 OCCUPANCY4 H1 2021 vs. H1 2020 ▼ 13.6% ▼ 13.7% ▼ 12.6% ▼11.8% Full week: 53.8% (H1 2020: 62.3%) (H2 2020: 42.8%) H1 2021 vs. H2 2020 Weekday: 57.1% (H1 2020: 67.5%) (
Slide 6: Hospital and emergency services
6 months ended 31 Mar 31 Mar 30 Sep Rm 2021 2020 % 2020 % FINANCIAL PERFORMANCE Revenue 9 794 10 380 (5.6) 7 870 24.4 Hospital and EBITDA ¹ 1 439 2 285 (37.0) 180 699.4 emergency Operating profit/(loss) ¹ 905 1 765 (48.7) (362) 350.0 services EBITDA margin (%) 14.7 22.0 2.3 Operating profit margin (
Slide 7: Acute hospital patient days
Acute hospital patient days Pre-national National Level 5 Level 4 Level 3 Level 2 Level 1 Level 3 Level 1 disaster disaster Lockdown Lockdown Lockdown Lockdown Lockdown Lockdown Lockdown October March July September January March 2019 2020 2020 2020 2021 2021 NETCARE LIMITED H1 2020 H2 2020 H1 2021
Slide 8: Total acute patient day trend during pandemic
Total acute patient day trend during pandemic 250 000 150% 104% 93% 90% 77% 80% 82% 100% 73% 68% 73% 200 000 63% 51% 54% 50% 150 000 0% -50% 100 000 -100% 50 000 -150% - -200% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar NETCARE LIMITED FY 2020 FY 2021 Non-COVID-19 COVID-19 % of prior year 8
Slide 9: Primary Care
6 months ended 31 Mar 31 Mar 30 Sep Rm 2021 2020 % 2020 % FINANCIAL PERFORMANCE Revenue 293 342 (14.3) 269 8.9 Primary EBITDA 54 75 (28.0) 18 200.0 Care Operating profit/(loss) 10 22 (54.5) (32) 131.3 EBITDA margin (%) 18.4 21.9 6.7 Operating profit margin (%) 3.4 6.4 (11.9) REVENUE EBITDA PATIENT V
Slide 10: Update on COVID-19
Update on COVID-19 NETCARE LIMITED 10
Slide 11: COVID-19 impact on our business
COVID-19 1 2 3 73 379 COVID-19 26% of patients 39% higher patient impact on patients treated 44% (32 197) of admitted to hospital required High Care admissions during H1 2021 vs. FY 2020 our business or Intensive Care these patients treatment admitted to our hospitals 3 396 patients in hospital at p
Slide 12: Percentage of beds dedicated to COVID-19 patients
Percentage of beds dedicated to COVID-19 patients 100% 90% 80% 70% 60% % of beds 50% 80% of 40% capacity at peak of 1st wave 60% of 30% capacity at peak of 2nd wave 20% 10% 0% June July January May 2020 2020 2021 2021 NETCARE LIMITED Red zone: COVID-19 Yellow zone: Patients undergoing Green zone: CO
Slide 13: Vaccination of Netcare's frontline workers near complete
Vaccination of Netcare’s frontline workers near complete 1 2 3 Most Netcare frontline Sisonke J&J vaccination Preparation for Phase 2 healthcare workers programme: public vaccination vaccinated based on a programme: 65 000 vaccines risk stratification administered to SA’s o Hospital sites prioritisa
Slide 14: In the midst of COVID-19, tragedy struck
In the midst of COVID-19, tragedy struck … On 21 January 2021, Netcare 1, Netcare 911’s emergency rescue helicopter crashed on route to KwaZulu-Natal The ECMO1 team from Netcare Milpark Hospital, a Netcare 911 paramedic and the pilot tragically lost their lives We express our heartfelt and sincere c
Slide 15: Financial Review
Financial Review NETCARE LIMITED 15
Slide 16: Group Financial Overview
Group Financial Overview 1 Second wave of COVID-19 adversely impacted financial performance for H1 2021 Steadily improving performance led to 2 strong growth against H2 2020 Statement of financial position remains 3 strong allowing ongoing investment in key strategic projects Improved net debt posit
Slide 17: Estimated impact of COVID-19 during H1 2021
Estimated impact of COVID-19 during H1 2021 01 02 03 04 EBITDA impact Additional Rental1 and Impact on of decline in operational costs parking income capex: patient days: incurred: foregone: . ±R700m R316m R23m R29m NETCARE LIMITED 1. Including: doctors’ rooms, imaging and diagnostics, coffee shops
Slide 18: Recovering performance half on half
Recovering Revenue (Rm) EBITDA (Rm) performance 10 713 10 081 (24.1)% 24.0% 8 130 half on half 2 360 1 493 (91.6)% 654.0% 198 H1 2020 H2 2020 H1 2021 H1 2020 H2 2020 H1 2021 Operating profit/(loss) (Rm) Net debt (Rm) 6 423 3.1% 1 787 6 231 (5.5)% (122.0)% 915 6 072 332.2% (394) NETCARE LIMITED H1 20
Slide 19: Summarised Group statement of profit or loss
Summarised Group statement of profit or loss 6 months ended REVENUE 31 Mar 31 Mar 30 Sep Rm 2021 2020 % 2020 % • H1 2021 and H2 2020 impacted by COVID-19 Revenue 10 081 10 713 (5.9) 8 130 24.0 • H1 2020 largely free of COVID-19 EBITDA ¹ 1 493 2 360 (36.7) 198 654.0 Operating profit/(loss) ¹ 915 1 78
Slide 20: Headline earnings per share (HEPS)
Headline earnings per share (HEPS) 6 months ended 31 Mar 31 Mar 30 Sep Cents per share 2021 2020 % 2020 % HEPS 26.6 44.0 (39.5) (47.6) 155.9 Adjusted HEPS 27.3 71.7 (61.9) (39.2) 169.6 Adjusted HEPS (cents) 71.7 27.3 NETCARE LIMITED (39.2) H1 2020 H2 2020 H1 2021 20
Slide 21: Summarised Group statement of financial position
Summarised Group statement of financial position 31 Mar 30 Sep Rm 2021 2020 1 Assets PPE , GOODWILL AND INTANGIBLE ASSETS PPE 1, goodwill and intangible assets 14 532 14 469 • Capex of R473m (2020: R451m) Right of use assets 3 593 3 755 - Expansion R201m Other non-current assets 1 740 1 670 (2020: R
Slide 22: Debt position
Debt position 31 Mar 31 Mar 30 Sep Rm 2021 2020 2020 Gross debt 8 485 8 195 7 873 GCR CREDIT RATING Cash (2 413) (1 964) (1 450) • Long term AA- • Short term A1+ Net debt 6 072 6 231 6 423 Net debt to EBITDA ¹ (times) 2.0 1.3 2.5 • Bank covenant waivers secured for Cost of debt (%) 6.1 7.9 6.4 31 Ma
Slide 23: Debt facilities
Debt facilities Cash and debt facilities Debt maturity profile (Rm) 31 March 2021 (Rm) 2 823 1 655 2 413 2 122 1 585 1 222 4 155 715 Uncommitted Cash facilities NETCARE LIMITED Committed H2 2021 FY 2022 FY 2023 FY 2024 FY 2025 facilities 23
Slide 24: Selective CAPEX investment in FY2021
Selective CAPEX 1 2 3 investment in New Netcare Alberton Hospital: Akeso Richards Bay: Akeso Gqeberha: FY2021 427 beds for completion 36 beds for completion 72 beds for completion April 2022 September 2021 September 2022 R400m R30m R40m H1 2021: R137m H1 2021: R6m H1 2021: R28m 4 5 CareOn: Wi-Fi and
Slide 25: FY 2021 Focus Areas
FY 2021 Focus Areas NETCARE LIMITED 25
Slide 26: Update on key strategic initiatives
Update on key strategic initiatives Occupational health Akeso Customer centricity Hospitals + Medicross Digitisation Employee wellness NetcarePlus NRC Data NETCARE LIMITED Netcare 911 Cancer Care 26
Slide 27: Netcare's digitisation and data strategy
Netcare’s digitisation and data strategy NETCARE LIMITED 27
Slide 28: Update: digital enablement and data driven strategy across Netcare's ecosystem
Update: digital enablement and data driven strategy across Netcare’s ecosystem 01 02 03 04 05 COVID-19 has Digitisation and Capital costs of R150m Continued focus confirmed the data programmes R650m for entire expenditure to on cybersecurity relevance of our back on track and programme spread date w
Slide 29: Rollout of Netcare Electronic Medical Records
Rollout of 01 Hospital digitisation: CareOn Netcare • 3 Western Cape hospitals completed in May 2021 Electronic • Netcare Milpark and Netcare Rehabilitation in Gauteng to be completed in September 2021 Medical Records • Further 3 hospitals to begin in October 2021 • 9 hospitals undergoing infrastruc
Slide 30: Creating a new, more affordable way to access private healthcare
Creating a new, more affordable way to access private healthcare NETCARE LIMITED 30
Slide 31: Unique products providing affordable access to quality private healthcare
Unique products providing affordable access to quality private healthcare 01 02 03 04 Offering excellent Integrated Easily No hidden value through our healthcare journey accessible costs expanded network NETCARE LIMITED Using the expanded Netcare Our products ensure an integrated Available through m
Slide 32: GP vouchers
GP vouchers Virtual GP vouchers GP vouchers GP + Medication vouchers The Virtual GP voucher gives you The GP voucher gives you access The GP + Medication voucher gives you NETCARE LIMITED access to a private, virtual doctor to a private doctor consultation access to a private doctor consultation con
Slide 33: Prepaid procedures
Prepaid procedures NETCARE LIMITED All-in affordable cost for select healthcare procedures 33
Slide 34: Accident and Trauma
Accident and Trauma Innovative insurance product packaged with the provision of healthcare Providing unlimited medical treatment for accidents and trauma NETCARE LIMITED 34
Slide 35: Excellent value packaged with quality care
ACCIDENT AND TRAUMA COVER Excellent value packaged with quality care Unlimited hospital treatment in Netcare and our network of hospitals Emergency medical transport by Netcare 911 Family Care Benefit with daily lump sum payments 24/7 trauma counselling Road Accident Fund (RAF) claims assistance NET
Slide 36: Transforming our society
Transforming our society NETCARE LIMITED 36
Slide 37: YES (Youth Employment Scheme) and The Netcare YES Hub
01 YES (Youth Employment Scheme) Addressing youth unemployment by equipping learners with skills to enter labour market at Netcare and broader healthcare sector • 1 007 youths enrolled in learning programmes • 329 learners completed learnership and internship programmes • >95% of these learners have
Slide 38: Guidance
Guidance NETCARE LIMITED 38
Slide 39: Pattern of potential recovery
Pattern of potential recovery Return to a “new normal" will be influenced by: 01 02 03 3rd wave SA vaccine rollout Economy • Probability • Ability to scale • Lockdown levels • Timing • Herd immunity • Unemployment • Severity • Efficacy against current • Medical scheme • Emergence of new strains and
Slide 40: Guidance
Guidance 01 02 03 04 Occupancies Trend expected to Refined approach to Vaccination of frontline increased into continue dependent minimise disruption workers will contribute to May 2021 on severity of 3rd from potential 3rd wave safer operating wave environment and improved patient sentiment 05 06 0
Slide 41: Thank you
PROVIDING YOU WITH THE BEST AND SAFEST CARE.