Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2022 Earnings Presentation
36 slides from Ramsay Health Care's earnings presentation, Feb 24, 2022
Slide 1: FY22 Interim Result Presentation
Ramsay Health Care FY22 Interim Result Presentation 6 months ended 31st December 2021 Managing Director & CEO, Craig McNally Group Chief Financial Officer, Martyn Roberts People caring for people.
Slide 2: Important Information
Important Information This presentation is in summary form and is not necessarily complete. It should be read together with the Ramsay Group’s unaudited consolidated financial statements lodged with the ASX on 24th February 2022. This presentation contains information that is based on projected and/
Slide 3: Agenda
Agenda Key Themes 01 Key Themes Group Financial Highlights 02 Regional Highlights & Outlooks 03 Group Financials 04 Strategic Direction & Group Outlook 05 Questions 0506 3 Results Briefing – Six months ended 31 December 2021
Slide 4: Key Themes
Key Themes Ramsay’s employees, clinicians and facilities continued to support the public sector and the community response to the pandemic Result severely impacted by new waves of COVID. When operating conditions allowed, activity levels improved The management of employee availability in the short
Slide 5: Group 1HFY22 Financial Highlights
Group 1HFY22 Financial Highlights ❑ Earnings were materially impacted by the ongoing % chg on Half year Ended 31 December A$'m $'m disruption caused by high COVID cases on activity pcp levels, case mix and costs Total revenue and other income (less interest income) 6,687.4 1.2 EBITDAR¹ 1,009.6 (8.8)
Slide 6: Australia Highlights & Outlook
Australia Highlights & Outlook Result Overview Results for the 6 months to 31st December (A$’m) • Materially impacted by lockdowns and isolation orders driven by the increase in COVID cases combined 3,000 2,719 2,731 with state government mandated surgical restrictions • The estimated total impact o
Slide 7: Australia – Trends in Admissions
Australia – Trends in Admissions 1HFY22 Admissions per work day vs 1HFY20 and 1HFY21 (%chg) 1HFY22 Revenue by State vs 1HFY21 and 1HFY20 (%chg) (ex Mildura) 13.9 15.4 11.6 7.4 6.7 6.0 3.5 4.0 3.9 3.2 2.4 2.1 2.0 1.6 -0.6 1.3 -1.8 -0.9 Surgical Medical Psych Rehab Maternity Total NSW WA & SA Qld Vic
Slide 8: Australia – Investment Pipeline
Australia – Investment Pipeline 1HFY22 FY22 - Brownfield/greenfield capital expenditure - Total spend on the development pipeline is now $91.1m expected to be $190-230m - Projects completed during the period at a net - No overall change to the development pipeline investment of $164.3m delivered 136
Slide 9: United Kingdom Highlights & Outlook
United Kingdom Highlights & Outlook Result Overview Results for the 6 months to 31st December (A$’m) • The business was severely impacted by COVID. Isolation orders impacted the availability of patients, 600 doctors and employees at short notice resulting in material procedure cancellations and sign
Slide 10: Europe Highlights & Outlook
Europe Highlights & Outlook Result Overview • Activity levels continued to be impacted by further waves of COVID. The business treated more than Results for the 6 months to 31st December (A$’m) 4,000 COVID patients in France and more than 500 in Sweden during the period • France continued to operate
Slide 11: Ramsay Sime Darby Highlights & Outlook
Ramsay Sime Darby Highlights & Outlook Results for the 6 months to 31st December (MYR’m) Result Overview • Ramsay's 50:50 Asian joint venture Ramsay Sime Darby (RSD) reported higher results for the six-month 700 585 period assisted by the inclusion of the Bukit Tinggi Medical Centre acquired in May
Slide 12: Ramsay is driving action through three pillars
Ramsay is driving action through three pillars: healthier people, stronger communities and a thriving planet. Half Year Highlights Half Year Highlights Half Year Highlights • Continuing to support our people and national • Ramsay UK has switched to 100% renewable • Ramsay Santé Foundation’s Prevent2
Slide 13: Group Financials
Group Financials Group CFO Martyn Roberts ramsayhealth.com
Slide 14: 1HFY22 Group Performance
1HFY22 Group Performance ❑ Revenue from "Governments under COVID support contracts" Half year Ended 31st December A$'m 2021 2020 (%)chg reflects payments received under agreements with governments in Revenue from patients and other revenue 6,469.0 5,916.6 9.3 both the UK¹ (in the pcp) and Australia
Slide 15: Cashflow
Cashflow Half year ended 31 December A$'m 2021 2020 Chg (%) EBITDA 952.6 1,039.0 (8.3) Changes in working capital (426.3) 349.4 (222.0) Finance costs (190.6) (182.1) (4.7) Income tax paid (133.5) (130.8) (2.1) Movement in other items (22.8) (42.1) 45.8 Operating cash flow 179.4 1,033.4 (82.6) Capita
Slide 16: Capital Expenditure
Capital Expenditure Capital Expenditure by Region ($’m) 1HFY22 Group Capital Expenditure by Region (%) 1HFY22 Group Capital Expenditure by Type ($’m) 1,000 830-972 800 40.7 109.3 600 400-460 176.4 340-390 352 386 $386.3m 400 209 200 51.7 117 157 200 26 29 90-122 0 37.1 Australia UK Europe Total 7.6
Slide 17: Capital Employed and Balance Sheet
Capital Employed and Balance Sheet A$'m 31/12/2021 30/06/2021 31/12/2020 Working capital (368.5) (794.8) (1,215.7) Property plant & equip 4,537.1 4,488.6 4,466.6 Intangible assets 4,320.6 4,233.6 4,203.3 Current & deferred tax assets 177.5 150.7 211.6 Other assets/(liabilities) (305.0) 1,646.2 (276.
Slide 18: Leverage
Leverage ❑ The Elysium Healthcare transaction closed on 31st January 2022¹. The acquisition values the business on a pre-IFRS 16 enterprise value of £775m (A$1.4bn). ❑ On a proforma basis assuming the transaction was completed on 31st December 2021 the available Funding Group un-drawn debt capacity
Slide 19: Strategy & Outlook
Strategy & Outlook Managing Director & CEO Craig McNally ramsayhealth.com
Slide 20: Group Strategy
Group Strategy RAMSAY’S Strategic Vision: To be a leading health care provider of the future Growing, modernising and leveraging our Moving purposefully into New & Adjacent Services World Class Hospital Network Providing integrated patient-centric care Along the In broader Offering new Including new
Slide 21: Elysium Healthcare - Overview
Elysium Healthcare - Overview A leading independent UK mental health care operator with expertise in integrated, high acuity care ❑ Leading independent UK operator within the mental health hospital and complex care sector ❑ Established in 2016 with 22 sites, Elysium has grown rapidly to 72 sites wit
Slide 22: Creates a stronger network with an expanding reach of services across the UK
Creates a stronger network with an expanding reach of services across the UK Network across the UK Operational metrics1 # Employee’s ~6,000 ~ 5,800 35 Hospitals # Hospitals/ sites 72 3 Neuro rehab centres NHS / Public admissions 99% 76% % sites rated 78%1 94% "Good" or Outstanding” Financial metrics
Slide 23: Ramsay's Global Portfolio
Ramsay’s Global Portfolio Primary Care Out of hospital Acute Care Mental Health Care Pharmacy Imaging & Day Surgery Emergency Rehab MH2 LD3 / Clinics Home care Hospitals Neuro Pharmacy Diagnostic Centre Centres Recovery Hospital Complex Care Australia UK France Italy Sweden Norway Denmark RSD1 1. RS
Slide 24: Group Outlook
Group Outlook Volume is expected to increase as restrictions start to ease in most jurisdictions, however business activity in 2HFY22 is expected to continue to be volatile and costs will remain elevated: • COVID isolation orders/illness and staff vacancies will continue to impact activity levels •
Slide 25: Questions
Questions | aN Ramsay Health Care
Slide 26: Partnerships with Government
Partnerships with Government In the six months to 31 December 2021, Ramsay continued to provide support to public health systems in Australia, France and the United Kingdom. The status of the arrangements are detailed below. Australia United Kingdom France Overview • From either 31 March 2020 or 1 A
Slide 27: FY22 Interim Results - Presentation Speech
ASX ANNOUNCEMENT 24th February 2022 FY22 Interim Results - Presentation Speech 24th February 2022 Slide 1 Front Cover Good morning, everyone and thank you for joining us for our FY22 half year results presentation webcast. My name is Craig McNally, and I am the Managing Director & CEO of Ramsay Heal
Slide 28: The investment in brownfield and greenfield expansion
The investment in brownfield and greenfield expansion and the upgrade of our facilities footprint has remained a key focus during the period with new facilities opened in Australia, the UK and Europe and the investment in a significant pipeline of developments continues. We have continued to build o
Slide 29: Slide Australia- Highlights & Outlook
Slide 6 Australia- Highlights & Outlook Moving to the result in Australia. Our NSW and Victorian activities were the most severely impacted by surgical restrictions across the six-month period, however our hospitals in Queensland and Western Australia were not immune to the disruption, in particular
Slide 30: Admissions change commentary
the chart in the left-hand corner the change in admissions across the various categories against last year, where disruption from COVID was principally in Victoria, and against 1HFY20 which was pre COVID. You can see that in areas such as psych and rehab we continue to be impacted against the pre CO
Slide 31: Slide - United Kingdom - Highlights & Outlook
Slide 8 - United Kingdom - Highlights & Outlook Turning to the UK. The business reverted to its traditional pre COVID operating arrangements with the NHS England from the 1st of April 2021. COVID cases in the UK, post the so called “freedom-day” in July, increased dramatically resulting in the intro
Slide 32: Santé reported strong activity growth overall
Santé reported strong activity growth overall, largely driven by the out of hospital segments. The business reported more than 5 million patient visits during the period, up 13% on the pcp with 64% of visits accessing out of hospital services, up from 60% for the same period last year. Total Europea
Slide 33: In 2HFY22 Ramsay Sime Darby is expected to continue to benefit
In 2HFY22 Ramsay Sime Darby is expected to continue to benefit from the recovery in patients in Malaysia following the easing of restrictions and the inclusion of the new hospital. Indonesia is expected to see a more gradual improvement in patient volumes given the more material impact of COVID on b
Slide 34: The expensing of IT and other assets
• The expensing of IT and other assets of $12.8m primarily relates to an internal decision to increase the threshold for capitalising assets and was principally incurred in the Australian business; • We took impairments of $5.6m in the Australian business related to some residual IT investments; • T
Slide 35: Leverage commentary
Slide 18 – Leverage We have provided you with leverage at both the funding group and on a consolidated basis assuming that the Elysium transaction had taken place on 31 December 2021. On that basis funding group leverage was 2.4x and our undrawn debt capacity and cash headroom was $424.5m. On a prof
Slide 36: Speech commentary on Elysium and outlook
higher staffing costs due to the pandemic as the Omicron wave took hold. As you can see the business has grown quickly over the last few years through both acquisitions and organic growth and we believe there is further opportunities for growth in the market. Slide 22 - Creates a Stronger Network We