Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2019 Earnings Presentation
22 slides from Ramsay Health Care's earnings presentation, Feb 28, 2019
Slide 1: Results Briefing – Half Year ended 31 December 2018
For personal use only Ramsay Health Care Limited Results Briefing Half Year ended 31 December 2018 Craig McNally, Group Managing Director & Bruce Soden, Group Finance Director 28 February 2019 ramsayhealth.com
Slide 2: Agenda
Agenda For personal use only Group H1 Highlights Detailed Financial Results Segment Performance Summary Outlook 2 Results Briefing – Half Year ended 31 December 2018
Slide 3: Group H1 Highlights
For personal use only 3 Group H1 Highlights
Slide 4: Group Half Year Financial Highlights
GROUP HALF YEAR FINANCIAL HIGHLIGHTS • Core NPAT up 1.0% to $290.8 million For personal use only Excluding Capio Core NPAT up 1.8% to $293.2 million • Core EPS up 1.2% to 140.6 cents Excluding Capio Core EPS up 1.9% to 141.7 cents • Group: − Revenue up 14.9% to $5.1 billion1 − EBITDA up 9.8% to
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only Australian operations delivered solid overall EBITDA growth on the back of volume growth and sustained focus on achieving operational efficiencies In the UK, while Q1 was challenging and impacted overall earnings for H1, we saw good recovery in NHS vo
Slide 6: Capio Acquisition
CAPIO ACQUISITION For personal use only • Acquired 7 Nov 18, delisted 28 Nov 18. Compulsory acquisition procedure for remaining shares will complete H2 • Good underlying growth fundamentals and strategic fit – quality provider and a leader in driving value-based healthcare, digitalisation and specia
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: Delivering Industry Leading Quality
DELIVERING INDUSTRY LEADING QUALITY We are focused on delivering the highest possible quality outcomes for patients that For personal use only are measurable, transparent & internationally benchmarked… FOCUS ON OUTCOMES DRIVING CLINICAL SYSTEM-WIDE RELIABILITY EXCELLENCE • Internal & External • Clin
Slide 9: Group Financial Results
For personal use only Group Financial Results 9
Slide 10: Group Performance 1H FY'19
GROUP PERFORMANCE 1H FY’19 For personal use only (Including Capio) (Excluding Capio) 2018 2017 2018 Six months ended 31 December Increase Increase $m $m $m Revenue – ex AASB15 adjustment 5,107.9 4,445.8 14.9% 4,718.2 6.1% Revenue – AASB15 adjustment 60.8 - 60.8 Total Revenue 5,168.7 4,445.8 16.3% 4,
Slide 11: Reconciliation to Statutory Reported Net Profit
RECONCILIATION TO STATUTORY REPORTED NET PROFIT For personal use only 2018 2017 Six month ended 31 December Increase $m $m Core NPAT 290.8 288.0 1.0% Net non-core items (net of minorities and net of tax) (1) (20.7) (41.5) Statutory Reported Net Profit after tax attributable to members of the Parent
Slide 12: Dividend Growth
DIVIDEND GROWTH For personal use only Interim Full-year Dividends Dividend FY 2019 144.0 134.5 • Strong consistent growth in dividends 119.0 Total dividend 101.0 (cents per share) 86.5 • Interim Dividend fully franked, up 4.3%, on 81.5 72.0 previous corresponding interim dividend, higher Final divid
Slide 13: Leverage and Cash Management
LEVERAGE AND CASH MANAGEMENT For personal use only Strong balance sheet with financial Consolidated Balance Sheet flexibility to continue to fund: Leverage Ratio − the pipeline of brownfield capacity 6x expansion RGdS Acquisition of − future acquisitions Capio UK Capio 5x Acquisition RGdS Ramsay San
Slide 14: Segment Performance Summary
For personal use only Segment Performance Summary
Slide 15: Australia
AUSTRALIA use only Ramsay Australia performed well delivering 5.7% EBITDA growth Performance • Admissions growth and strong focus on operational efficiencies drove 1H FY’19 good result • Brownfield programme delivered $151m in completed projects including 169 new beds (124 net) and 10 procedural the
Slide 16: Projects Forecast for Completion in FY19
PROJECTS FORECAST FOR COMPLETION IN FY19 During FY19 the following projects are forecast to complete: For personal use only $242.0m gross $222.4m hospital 30 consulting suites, 1 emergency capital investment investment1 2,302 sqm departments H1: $151.3m H1: $131.7m H1: 30, 2,302 sqm H1: 1 H2: $90.7m
Slide 17: Continental Europe
CONTINENTAL EUROPE use only RGdS delivered a solid 1H operating result and acquired Capio Performance • RGdS delivered a solid H1 operating result - above expectations 1H FY’19 • Large scale restructuring programme to centralise non-core hospital functions in France is on track Including Excluding C
Slide 18: United Kingdom
UNITED KINGDOM use only NHS volume growth returning, tariff likely to improve Performance 1H FY’19 • Challenging Q1 and impacting overall earnings in H1 • Recovery to NHS volume growth in Q2 personal 1.6% 206.2 209.6 (1) • Positive signs emerging in the UK in terms of both price and 9.2% volume grow
Slide 19: Asia
ASIA use only Growing market, remains competitive Performance 1H FY’19 • Strong operating performance in Malaysia • Cost controls key focus area personal • New developments targeting universal healthcare patients opened across our Indonesian facilities 29.4% 11.0 8.5 • New brownfields will continue
Slide 20: Outlook
For personal use only Outlook
Slide 21: Outlook
OUTLOOK For personal use only • Demand will continue to drive growth in the sector globally over the long term. • In Australia, we maintain a market leadership position in terms of the strength and diversity of our portfolio and delivering high quality services. While there are various short term ch
Slide 22: Questions
For personal use only Questions