Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2023 Earnings Presentation
23 slides from Ramsay Health Care's earnings presentation, Feb 23, 2023
Slide 1: 1HFY23 Result Presentation
RAMSAY HEALTH CARE 1HFY23 Result Presentation 6 months ended 31st December 2022 Managing Director & CEO - Craig McNally Group Chief Financial Officer - Martyn Roberts People caring for people
Slide 2: Important Information
Important Information The information in this presentation is general background information This presentation contains forward looking statements. These forward about Ramsay Health Care Limited and its subsidiaries (Ramsay Group) looking statements should not be relied upon as a representation or a
Slide 3: Agenda
Agenda Key Themes 01 Key Themes Group 1HFY23 Financial Highlights 02 03 Regional Highlights & Outlooks Group Financials 04 Strategic Direction & Group Outlook 05 Questions 06 05 3 People Caring for People - 1HFY23 Results Briefing 6 Months Ended 31 December 2022
Slide 4: Key Themes - Business trends improve as COVID impact abates
KEY THEMES - Business trends improve as COVID impact abates Operating results improved progressively over the six-month The business is partnering with public health sectors under period to December 2022, driven by an improvement in commercial contracts in each region to assist with reducing surgica
Slide 5: Our People - Programs underway; recruitment and retention
OUR PEOPLE – Programs underway; recruitment and retention People remain biggest business challenge RECRUITMENT Boosted recruitment campaigns • Ramsay Australia made 4,000+ permanent appointments in 2022 • 490 new hires via Ramsay Australia’s Employee Referral Program • 28% increase in clinical place
Slide 6: Group - 1HFY23 Result Overview
GROUP – 1HFY23 Result Overview The result benefited from growth in surgical activity 6 months ended 31 December A$'m $'m % chg on pcp chg (%) cc¹ across all regions; activity was skewed more heavily Total revenue and other income (less interest income) 7,380.8 10.4 13.6 to day surgery. Recovery in n
Slide 7: Australia - Highlights & Outlook
AUSTRALIA – Highlights & Outlook RESULT HIGHLIGHTS Australia results for the six months to 31st • The operating environment across the six-month period improved as community COVID cases December A$’m declined from the peak in July. A wave of cases in late November/December temporarily slowed the 2,7
Slide 8: Trends in Admissions & COVID-related absenteeism
Trends in Admissions & COVID-related absenteeism Surgical Admissions per work day vs FY22 and FY20 Non Surgical Admissions per work day vs FY22 and FY20 18% 4% 12% 2% 3% 10% 6% 8% 7% 2% 5% 4% 5% 1% 5% 4% 0% 3% -1% 2% -1% -3% -4% -2% -2% -4% -4% -2% Jul Aug Sep Oct Nov Dec Jan Jul Aug Sep Oct Nov Dec
Slide 9: Australia - Investment Pipeline
AUSTRALIA – Investment Pipeline 1HFY23 INVESTMENT INVESTMENT PIPELINE - OUTLOOK • 1HFY23 brownfield/greenfield capex $101m • 2HFY23 capex on greenfield and brownfield development pipeline • Digital & data capex $5m expected to be ~$100m-130m • Digital & data project operating expenses $4.6m • FY24-F
Slide 10: Ramsay Sime Darby - Highlights & Outlook
RAMSAY SIME DARBY – Highlights & Outlook RESULT HIGHLIGHTS Results for the six months to 31st December (MYR’m) • Ramsay's 50:50 Asian joint venture Ramsay Sime Darby (RSD) reported a 12% increase in revenue over the pcp (in local currency) for the six-month period reflecting increased inpatient acti
Slide 11: United Kingdom - Highlights & Outlook
UNITED KINGDOM – Highlights & Outlook RESULT HIGHLIGHTS • The acute hospital business reported a turnaround in underlying results driven by the Results for the six months to 31st December A$’m improving operating environment combined with better management of COVID disruption, 910 supply costs and r
Slide 12: Europe - Highlights & Outlook
EUROPE – Highlights & Outlook RESULT HIGHLIGHTS • After a slow start, activity in the region increased with surgical activity skewed to day Results for the six months to 31st December A$’m surgery. Non-surgical activity, in particular rehab, also increased on the pcp 3,225 3,353 • Support from gover
Slide 13: Driving sustainability action through three pillars
Ramsay is driving sustainability action through 3 pillars: Healthier People, Stronger Communities and a Thriving Planet • The Ramsay Way Awards launched to recognise Australian employees sharing and advocating our values. • People & Culture Forum established for Ramsay UK employees to develop inclus
Slide 14: Group Financials
Group Financials Martyn Roberts Group CFO People Caring for People - 1HFY23 Results Briefing 6 14 Months Ended 31 December 2022
Slide 15: 1HFY23 - Group Performance
1HFFY23 – Group Performance • Total revenue from patients and other Total Revenue six mths ended EBITDAR six mths ended 31 December $’m 31st December $’m revenue increased 9.8% reflecting 9.8% 1,128.6 8.3% 1,107.5 improved elective surgery activity across all 7,103.7 1,093.4 6,606.2 6,469.0 regions
Slide 16: Balance Sheet & Cashflow
Balance Sheet & Cashflow Cashflow Balance Sheet A$'m 31/12/2022 30/06/2022 31/12/2021 Half Year ended 31 December A$'m 2022 2021 Chg (%) Working capital (169.4) (345.2) (368.5) EBITDA 1,026.5 952.6 7.8 Property plant & equip 5,035.7 4,806.5 4,537.1 Changes in working capital (175.8) (426.3) 58.8 Int
Slide 17: Leverage
Leverage Net Debt and Leverage Ratio – Leverage and Debt Metrics - Consolidated Group Funding Group¹ (AASB117) 3.5x 3.3x 5.5 5.6 5.7x 5.2 5.7x 2.6 4.2x 1.0x 2.4 2.0x 0.8 3.5x 5.2 3.9x 3.0 4.8 Dec-21 Jun-22 Dec-22 Dec-21 Jun-22 Dec-22 Funding Group Net Debt $'m² Consolidated Capitalised Leases (AASB1
Slide 18: Funding
Funding • As at 31 December 2022 the weighted average Ramsay Funding Group¹ Debt Maturity Profile debt maturity (excl. CARES) was 2 years • Ramsay continues to explore opportunities to diversify the Funding Group’s sources of $’m 380 funding and extend the duration of its debt 1705 500 500 250 50 FY
Slide 19: Capital Expenditure
Capital Expenditure Capital Expenditure by Region (A$’m) Group Capital Expenditure by Region (%) Group Capital Expenditure by Type (A$’m) 705-810 148 45% 173 330-365 386 370 300-350 44% 75-95 200 166 157 164 29.2 40 18 Australia UK Europe Total 11% 31 Routine & Compliance Growth 1HFY22 1HFY23 FY23F
Slide 20: Strategy & Outlook
STRATEGY & OUTLOOK Craig McNally Managing Director & Group CEO People Caring for People - 1HFY23 Results Briefing 6 20 Months Ended 31 December 2022
Slide 21: Investing to be a leading, integrated healthcare provider of the future
Ramsay will continue to invest in its strategy to be a leading, integrated healthcare provider of the future 21 Ramsay Health Care - 2022 Annual General Meeting
Slide 22: Group Outlook
Group Outlook Ramsay expects Ramsay expects a gradual recovery through FY23 and more normalised conditions in FY24 • Ramsay has invested approximately $3 billion since the start of CY2020 to expand and upgrade its facilities and broaden its service base. This investment is underpinned by: demograp
Slide 23: Questions
QUESTIONS People Caring for People - 1HFY23 Results Briefing 6 23 Months Ended 31 December 2022