Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2020 Earnings Presentation
22 slides from Ramsay Health Care's earnings presentation, Feb 27, 2020
Slide 1: ASX cover letter for half year results presentation
To Company Announcements Office Date 27 February 2020 For personal use only Company ASX Limited From Henrietta Rowe Group Company Secretary Ramsay Health Care Limited Subject Half Year Financial Results Presentation Please find attached the investor presentation relating to Ramsay Health Care’s Resu
Slide 2: Results Briefing – Half Year ended 31 December 2019
For personal use only Ramsay Health Care Limited Results Briefing Half Year ended 31 December 2019 Craig McNally, Group Managing Director & Michael Hirner, Acting Group CFO 27 February 2020 ramsayhealth.com
Slide 3: Agenda
Agenda For personal use only Group H1 Highlights Detailed Financial Results Segment Performance Summary Outlook 2 Results Briefing – Half Year ended 31 December 2019
Slide 4: Group H1 Highlights
For personal use only 3 Group H1 Highlights
Slide 5: Group Half Year Financial Highlights
GROUP HALF YEAR FINANCIAL HIGHLIGHTS For personal use only • Core NPAT: $273.6 million On a like for like basis, under the old Lease Accounting Standard (AASB 117 Leases), Core NPAT up 3.4% on the previous corresponding period • Core EPS: 132.5 cents On a like for like basis, under the old Lease
Slide 6: Highlights
HIGHLIGHTS For personal use only Overall, solid performance in 1H Australia impacted by ongoing soft activity growth Ramsay Santé (formerly known as Ramsay Générale de Santé) performed well and continued to make good progress on the integration of Capio. On track to achieve synergies Ramsay
Slide 7: Our Strategic Position
OUR STRATEGIC POSITION For personal use only Global Health Differentiated 77,000 Operator Business Employees Economies of scale Scale Best practise Cost leadership Diversified portfolio 480 Speed to market Industry leading Locations Innovation quality 8,500,000 Market Leading Deep and Patient visits
Slide 8: Our Diverse Mix of Facilities & Services
For personal use only Our Diverse Mix of Facilities & Services Emergency Acute care Diagnostics Mental Rehabilitation Pharmacies Primary & Emergency General Hospitals Pathology Health Inpatient & In-hospital Ambulatory Centres & Specialist Inpatient & Day Outpatient pharmacies Care Radiology Clinics
Slide 9: Group Financial Results
For personal use only Group Financial Results 8
Slide 10: Group Performance 1H FY'20
GROUP PERFORMANCE 1H FY’20 “Reported” “Like for like” Impact New Lease Standard (AASB16 Leases) Old Lease Standard (AASB117 Leases) For personal use only Six months ended 31 December 2019 2018 Inc/(Dec) 2019 2018 Inc/(Dec) 2019 $m $m % $m $m % $m (1) AASB16 (1) AASB117 (2) AASB117 (2) AASB117 (1) AA
Slide 11: Reconciliation to Statutory Reported Net Profit
RECONCILIATION TO STATUTORY REPORTED NET PROFIT 2019 2018 For personal use only Six month ended 31 December Inc./Dec. $m $m Core NPAT 273.6 290.8 (5.9)% Net non-core items (net of minorities and net of tax) (1) (15.2) (20.7) Statutory Reported Net Profit after tax attributable to members of the Pare
Slide 12: Dividend Growth
DIVIDEND GROWTH For personal use only Interim Full-year Dividends Dividend FY’20 • Strong consistent growth in dividends 151.5 144.5 Total dividend (cents per share) 134.5 • Interim Dividend fully franked, up 4.2%, on 119.0 previous corresponding interim dividend, slightly higher than the 3.7% incre
Slide 13: Leverage and Cash Management
For personal use only LEVERAGE AND CASH MANAGEMENT Consolidated Balance Sheet Leverage Ratio Strong balance sheet with financial flexibility to 6x continue to fund the pipeline of brownfield capacity expansion and future acquisitions RGdS 5x Acquisition of 4.5 (2) Leverage: Générale de Santé RGd
Slide 14: Segment Performance Summary
For personal use only Segment Performance Summary
Slide 15: Australia
AUSTRALIA Softer operating environment impacted 1H results use only Performance • Admissions growth was above prior corresponding period, however 1H FY’20 overall activity remains subdued when compared to long term average • Continued good progress on changing our operating model in order For person
Slide 16: Continued investment in brownfields
Continued investment in brownfields* For personal use only Completion forecast FY’20 • $168m • 197 gross beds (144 net) • 3 theatres • 85 consulting suites Completed in 1H FY’20 • $50m • 71 gross beds (26 net) • 1 theatre • 34 consulting suites Approved in 1H FY’20 • $189m • 207 net beds • 8 theatre
Slide 17: Continental Europe
CONTINENTAL EUROPE Ramsay Santé performed well in the H1 For personal use only • Ramsay Santé (including Capio) delivered a solid H1 operating result - above expectations Performance • Excluding Capio, Ramsay Santé delivered results above prior 1H FY’20 corresponding period: 44.3% • Revenue up 2.4%
Slide 18: United Kingdom
UNITED KINGDOM 1H growth was strong making this Ramsay UK’s best half use only performance in recent years Performance • Ramsay UK performed well in the 1H 1H FY’20 • Increase in overall activity and strong performances in PMI and self pay admissions 8.7% personal • EBITDAR performance was ahead of
Slide 19: Asia
ASIA Growing market, remains competitive use only Performance 1H FY’20 • Strong operating performance in Malaysia and Indonesia • Groupwide admissions growth strong in the 1H • New developments targeting universal healthcare patients personal 13.6% opened in two of our Indonesian facilities with dev
Slide 20: Outlook
For personal use only Outlook
Slide 21: Outlook
OUTLOOK For personal use only • Positive signs for Ramsay’s business in the UK and Europe in terms of volume and tariff growth • Expect the softer growth environment in Australia to remain in the short term • Monitoring the impact of coronavirus on our global business • Continue to monitor and inves
Slide 22: Questions
For personal use only Questions