Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2020 Earnings Presentation
29 slides from Ramsay Health Care's earnings presentation, Aug 27, 2020
Slide 1: Results Briefing - Year ended 30 June 2020
Ramsay Health Care Limited Results Briefing Year ended 30 June 2020 Craig McNally, Managing Director & Chief Executive Officer Martyn Roberts, Group Chief Financial Officer 27 August 2020 ramsayhealth.com
Slide 2: Important information
Important information The information in this presentation is general background information about Ramsay Health Care Limited and its subsidiaries (Ramsay Group) and their activities and is current as at 27 August 2020. It is in summary form and is not necessarily complete. It should be read togethe
Slide 3: Ramsay Health Care Response to COVID-19
Ramsay Health Care Response to COVID-19 People Caring for People 3 Results Briefing - Year ended 30 June 2020
Slide 4: Caring for our patients
Ramsay Health Care Response to COVID-19 Caring for our patients The period has been filled with numerous examples of our doctors and staff going above and beyond including: • Caring for many thousands of COVID-19 patients around the globe – 7000 in France • Assisting the NHS England by performing th
Slide 5: Caring for our employees & doctors
Ramsay Health Care Response to COVID-19 Caring for our employees & doctors • No employees were stood down because of the pandemic • Stringent safety policies adopted early to limit transmission to our staff & doctors • Wellbeing and employee assistance services and resources launched for our staff a
Slide 6: Caring for our communities
Ramsay Health Care Response to COVID-19 Caring for our communities • Leading role in achieving government partnerships to assist with national COVID-19 response efforts • Assisting local public hospitals/aged care with beds, ventilators and staff • Contributions to local businesses impacted during t
Slide 7: Leveraging Scale
Ramsay Health Care Response to COVID-19 Leveraging Scale • Global supply chain management systems leveraged to limit shortfalls in supplies • Our digital consultation platform, Capio- Flow, in Swedish Proximity Care business expanded threefold to over 33,000 consultations per month • Agile technolog
Slide 8: Agenda
Agenda Group Performance Overview Segment Performance Group Financials Strategy Outlook 8 Results Briefing - Year ended 30 June 2020
Slide 9: Group Performance Overview
Group Performance Overview
Slide 10: Group Financial Highlights FY'20
Group Financial Highlights FY’20 Core NPAT down 43% to $336.9 million On a like for like basis, under the old Lease Accounting Standard (AASB 117 Leases), Core NPAT down 34.4% on the previous corresponding period Statutory NPAT down 47.9% to $284m No Final Dividend declared. Interim Dividend 62.5 ce
Slide 11: Segment Summary
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Slide 12: Australia Performance FY'20
Australia • Ramsay Australia was on track to meet full year targets as at end Feb 2020 but significantly impacted by elective surgery restrictions from March 2020 • Government agreements ran through to 30 June when most agreements were Performance FY’20 paused or terminated and Ramsay ceased drawing
Slide 13: Continued investment in brownfields
Continued investment in brownfields* Completed in FY’20 • $255m • 295 gross beds (222 net) • 11 theatres • 85 consulting suites Approved in FY’20 • $196m • 209 net beds • 9 gross theatres (7 net) • 1 new ED + 1 ED expansion • 13 consulting suites Completion forecast FY’21 • $54m • 69 gross beds (5 n
Slide 14: Continental Europe Performance FY'20
Continental Europe • Ramsay Santé was on track to meet targets as at February 2020 Performance FY’20 • Activity in Q4 was adversely impacted by COVID-19 • The French government decreed a revenue guarantee for the private hospital sector (Mar – Dec 20) • Our facilities in France, Italy and Sweden car
Slide 15: United Kingdom Performance FY'20
United Kingdom • Strong performance to February 2020 – heavily impacted by COVID-19 Performance FY’20 from March 2020 • Ramsay UK’s 33 surgical hospitals were made available to the national effort - performed 13,000 urgent operations • Ramsay UK received net cost recovery resulting in a broadly brea
Slide 16: Asia Performance FY'20
Asia Performance FY’20 • No restrictions imposed on elective surgery during pandemic, however movement control orders impacted patient volumes • Hundreds of COVID-19 patients treated in our Asian facilities, particularly in Indonesia • No Government viability guarantees were available in Malaysia or
Slide 17: Group Financials
Group Financials
Slide 18: Group Performance FY'20
GROUP PERFORMANCE FY’20 New Lease Standard (AASB16 Leases) Old Lease Standard (AASB117 Leases) Impact Year ended 30 June 2020 2019 Inc/(Dec) 2020 2019 Inc/(Dec) 2020 $m $m % $m $m % $m (1) AASB16 (2) AASB117 (2) AASB117 (2) AASB117 (1) AASB16 Leases Leases Leases Leases Leases Operating Revenue 12,3
Slide 19: Capital Employed
Capital Employed Capital employed increased by $4.5 billion following the adoption of AASB16 ROCE reduced due to the reduction in EBIT in FY’20 and the acquisition of Capio in FY19 A$M 2020 2019 Var Working capital (875) (440) (435) • Working capital decreased due to revenue Property, plant & equipm
Slide 20: Cash Flow
Cash Flow Government guarantee programs assisted operating cashflows (particularly in France) A$1.5 billion equity raising has strengthened the balance sheet and enhanced financial flexibility A$M 2020 2019 Var • 2020 under AASB16. 2019 under AASB117 Core EBITDA 1,844 1,592 252 Changes in working ca
Slide 21: Leverage and Capital Management
Leverage and Capital Management Leverage and Debt A$B Net Debt / EBITDA • Equity Raising of $1.5 billion reduces $9 5.0x RGdS 4.4x leverage $8 Acquisition of 4.5x Générale de Santé Capio AB • Strong balance sheet with financial flexibility $7 Acquisition 4.0x to continue to fund the pipeline of brow
Slide 22: Strategy
Strategy
Slide 23: Group Strategy
Group Strategy Our strong balance sheet supports our future growth strategy Growth Efficiency Sustainability Driving stronger Developing new Strengthening Building a more growth from the core growth platforms the core sustainable organisation Organic Growth Acquisitions Operational Excellence Patien
Slide 24: Outlook
Outlook
Slide 25: Outlook
Outlook • Ramsay’s pandemic response demonstrates sustainability of the Company • Many uncertainties remain with respect to the impact of the pandemic • As a result, Ramsay is unable to provide guidance for FY’21 • Notwithstanding the significant near term uncertainties, over the longer term, strong
Slide 26: Questions
Questions
Slide 27: Appendix
Appendix
Slide 28: Partnerships with government
Partnerships with government Ramsay made its facilities and capabilities available to support public health systems in the global response to COVID-19. In return, governments contributed to the overall viability of the sector, including Ramsay, through contractual or legislative support. Australia U
Slide 29: Contact Us
Contact Us For further information: Media Investor Relations Carmel Monaghan Kelly Hibbins Phone: +61 29220 1010 Phone: +61 2 9220 1034 MonaghanC@ramsayhealth.com HibbinsK@ramsayhealth.com.au Group Chief Financial Officer Martyn Roberts Phone: +61 29220 1012 RobertsMartyn@Ramsayhealth.com