Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 2002 Earnings Presentation
22 slides from Ramsay Health Care's earnings presentation, Feb 28, 2002
Slide 1: Interim Results Briefing – 28 February 2002
INTERIM RESULTS Briefing – 28 February 2002
Slide 2: Overview
Overview n A record half-year, NPAT increased 127% n Increase in operating profit matched by rise in operating cash flow n All divisions delivered strong growth - Alpha performed strongly, as did existing Ramsay hospitals n Management has taken advantage of all opportunities to maximise profits and
Slide 3: Half year Progress Report
Half year Progress Report Targeted: Outcome: § Existing Ramsay Hospitals ü Existing Ramsay Group EBIT to perform well: rose 31% § Alpha to be a strong add-on ü Occupancy & profit above business: expectations § North Shore Private profit ü EBIT - over 200% increase, growth to accelerate: off a low ba
Slide 4: Financial Highlights
Financial Highlights n NPAT up 127% to $14.8m n Group Revenue up 42% n Group EBIT up 57% n EBIT margin up to 10.9% from 9.9% n Net operating cash flow up 40% to $42.5m n EPS up to 11.7 cents per share from 6.0 cents
Slide 5: Financial Performance
Financial Performance Half-year Ended 31 December 2000 2001 % $m $m Increase Operating Revenue 186.5 264.5 42% EBITDA 28.4 40.3 41% EBIT 18.4 28.9 57% Profit before tax 8.9 21.2 139% NPAT 6.5 14.8 127% EBIT Margin 9.9% 10.9% EBIT Margin (excl Mildura) 10.5% 11.7% EPS (cents per share) 6.0¢ 11.7¢ Int
Slide 6: Cash Flow
Cash Flow n Half-year EBITDA of $40.3m has translated into strong net operating cash flow of $42.5m n Half-year free cash flow after scheduled debt amortisation, interest, dividends and routine capex was approximately $16m n Annualised FY 2002 free cash flow available to service voluntary debt payme
Slide 7: Operational Performance – NPAT Growth
Operational Performance NPAT Growth $m 14.8 16 14 12 9.5 10 6.5 8 6 3.9 4 2 0 Jun'00 Dec'00 Jun'01 Dec'01 Half-year ended
Slide 8: Operational Performance – Occupancy Patient Days
Operational Performance Occupancy - Patient Days 420 360 (Days,000) 300 240 180 Jun'00 Dec'00 Jun'01 Dec'01 Half-year ended Inpatients Total (Inpatient & Day Patients)
Slide 9: Operational Performance – EBIT
Operational Performance $m EBIT 35 28.9 30 25 21.1 18.4 % inc. over Dec’00 20 15.4 • Group EBIT up 15 57% 10 • Existing 5 Hospitals (excl. Alpha) up 31% 0 Jun'00 Dec'00 Jun'01 Dec'01 Half-year ended RHC Alpha (acquired 31 May'01)
Slide 10: Operational Performance – EBIT Margin
Operational Performance % EBIT Margin 11.5 11.0 10.9 10.5 10.5 10.0 9.9 9.5 9.3 9.0 8.5 Jun'00 Dec'00 Jun'01 Dec'01 Half-year ended
Slide 11: Operational Performance – EBIT Margin Excluding Alpha & Mildura
Operational Performance EBIT Margin % (Excluding Alpha & Mildura) 13.5 12.5 12.8 11.5 11.7 10.5 10.5 9.5 9.3 8.5 Jun'00 Dec'00 Jun'01 Dec'01 Half-year ended
Slide 12: Operational Performance – Earnings per Share
Operational Performance Earnings per Share 11.7 12.0 10.0 8.2 Cents per Share 8.0 6.0 6.0 3.6 4.0 2.0 0.0 Jun'00 Dec'00 Jun'01 Dec'01 Half-year ended
Slide 13: Growth Prospects
Growth Prospects n Organic growth based on: Ø Positive market conditions Ø Maximising use of under-utilised capacity Ø Leverage off strong management franchise Ø Good relationships with health funds and strategic profile of hospital portfolio
Slide 14: Growth Prospects (cont)
Growth Prospects (cont) n Medium to longer term growth: Ø Market conditions continue to support growth Ø Additional investment in extra capacity comes on stream Ø Further acquisition of hospitals Ø Looking at opportunities outside hospitals, close to core expertise, that meet investment hurdles
Slide 15: Challenges
Challenges Issue: Response: § To maintain positive climate Ø Working with health funds to in private hospital market: ensure quality of product at a reasonable price § To maintain health fund Ø Lifetime cover will support membership: health fund membership § Demand for private hospital Ø Occupancy a
Slide 16: Outlook – Sustainable Growth
Outlook – Sustainable Growth n 2nd half net profit expected to at least match 1st half, despite seasonal effects n The base has been set for strong EPS growth in the medium term n Targeting double-digit growth in out years
Slide 17: Appendix
He OWN RAMSAY HEALTH CARE Appendix
Slide 18: Financial Indicators
Financial Indicators Six Months Ended 30 Jun’00 31 Dec’00 30 Jun’01 31 Dec’01 ** Net Gearing % 134 88 83 70 ROIC (* EBIT / Funds 7.9 10.5 11.7 14.4 Employed) % ROE (* NPAT / Shareholders 4.1 6.3 8.0 12.1 Funds) % * Based on 12 months rolling average. (In the six month period ended 31 December 2001,
Slide 19: Hospital Portfolio
Hospital Portfolio O p e r a t in g D iv is io n N um ber L ic e n c e d of B eds H o s p ita ls V e te ra n 2 787 C o - lo c a te d 3 364 R e g io n a l M e d ic a l - S u r g ic a l 8 710 P s y c h ia tr ic 8 538 R e h a b ilita tio n 2 131 T o ta ls 23 2 ,5 3 0
Slide 20: Revenue Analysis
Revenue Analysis Revenue by Revenue by Operating Division Payer Source 3% 12% 6% 40% 7% 20% 51% 36% 25% Veteran Medical-Surgical Health Funds DVA Co-located Psychricatric Rehabilitation Government Other
Slide 21: EBIT Analysis
EBIT Analysis EBIT by Operating Divisions 3% 13% 44% 16% 24% Veteran Psychriatric Medical-Surgical Co-located Rehabilitation
Slide 22: Interim Results Briefing
INTERIM RESULTS Briefing – 28 February 2002