Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2018 Earnings Presentation
27 slides from Ramsay Health Care's earnings presentation, Aug 30, 2018
Slide 1: Results Briefing - Year ended 30 June 2018
For personal use only Ramsay Health Care Limited Results Briefing Year ended 30 June 2018 Craig McNally, Managing Director & Bruce Soden, Group Finance Director 30 August 2018 ramsayhealth.com
Slide 2: Agenda
Agenda For personal use only Group Performance Overview Segment Performance Growth Strategy Update Outlook 2 Results Briefing - Year ended 30 June 2018
Slide 3: Group Performance Overview
For personal use only Group Performance Overview 3
Slide 4: Group Highlights FY'18
Group Highlights FY’18 For personal use only • 6.8% increase in Core NPAT, 7.0% increase in EPS • Group revenue up 5.4% • Ramsay Australia performed above industry but experienced softer volume growth Performance • Ramsay GdS performed in line with expectations • Significant downturn in NHS volumes
Slide 5: Group Performance FY'18
Group Performance FY’18 For personal use only 2018 2017 Year ended 30 June Increase $m $m Ramsay Health Care Limited Revenue 9,176.2 8,702.5 5.4% FY’18 performance: EBITDAR 1,839.4 1,705.9 7.8% • Core Net Profit After Tax of $579.3 million, up EBITDA 1,395.9 1,313.9 6.2% 6.8% EBIT 1,007,6 943.4 6.8%
Slide 6: Reconciliation to Statutory Reported Net Profit
Reconciliation to Statutory Reported Net Profit For personal use only 2018 2017 Increase/ Year Ended 30 June $m $m (Decrease) Core NPAT 579.3 542.7 6.8% Net non-core items (net of minorities and net of tax) • Restructuring – RGdS (29.9) - • Impairment – Ramsay UK (122.0) (1.3) • Other (39.1) (52.5)
Slide 7: Consistent history of earnings growth
Consistent history of earnings growth… For personal use only Core Net Profit after Tax (NPAT) Core Earning per Share (EPS) (A$m) (cents per share) Core NPAT up 6.8% to $579.3m Core EPS up 7.0% to 279.8¢ Core EPS growth in line with Core NPAT growth Strong CAGR growth for Core NPAT and Core EPS 412.1
Slide 8: Matched by growth in dividends
…matched by growth in dividends For personal use only Total Dividend CAGR = 12.6% 144.0 134.5 119.0 Total dividend 101.0 Final dividend fully franked, up 6.1% on (cents per share) previous corresponding period 86.5 81.5 72.0 60.5 Dividends for the full year up 7.1%, in line Final dividend with growt
Slide 9: Balance sheet capacity to fund growth
…and balance sheet capacity to fund growth For personal use only Strong balance sheet with financial Consolidated Balance Sheet flexibility to continue to fund: Leverage Ratio − the pipeline of brownfield 6x capacity expansion Capio UK RGdS Acquisition of − future acquisitions 5x Acquisition Ramsay
Slide 10: Segment Summary
For personal use only Segment Summary
Slide 11: Australia
Australia Australian hospitals performed well despite industry headwinds, demonstrating FY’18 only strength and diversity of portfolio Performanceuse • Maintained admissions growth above industry but below normal admissions growth • Industry being impacted by affordability and ongoing negative focus
Slide 12: France
France Improvement in operating environment for private hospitals in France For personal use only • Ramsay GdS performed in line with expectations given tariff environment: 0.3% Performance Revenue up 0.3% to €2.24 billion EBITDAR down (0.6)% to €445.7 million FY’18 • Overall admissions growth p
Slide 13: United Kingdom
United Kingdom Challenging operating environment due to NHS cost constraints and For personal use only referral management schemes • Performed below expectations despite tariff adjustment April 18: (5.2%) Performance Revenue down (5.2)% to £424.2 million EBITDAR down (9.8)% to £102.7 million FY’
Slide 14: Asia
Asia For personal use only Growing market, remains competitive Performance • Strong operating performance in Malaysia • Cost controls key focus area FY’18 • New developments targeting universal healthcare patients (BPJS) opening at 27.7% two of our Indonesian facilities 16.8 13.1 • New brownfields w
Slide 15: Strategy Update
For personal use only 15 Update Strategy
Slide 16: Agenda
Agenda For personal use only Group Strategy Brownfield Programme Acquisitions Out-of-hospital 16 Results Briefing - Year ended 30 June 2018
Slide 17: Group Strategy
Group Strategy For personal use only Continuing to create shareholder value through our focused strategy Growth Efficiency Sustainability Driving stronger growth Developing new Strengthening Building a more from the core growth platforms the core sustainable organisation Organic Growth Acquisitions
Slide 18: FY'18 Completed Brownfield Projects
FY’18 Completed Brownfield Projects During FY’18 the following projects were completed: For personal use only Completed Projects Northside Clinic $171.2m gross 21 consulting • Northside Clinic Greenwich Relocation (net 24 beds) capital suites, investment Greenslopes Private Hospital • Jessie Vasey W
Slide 19: FY'18 Approved Brownfield Projects
FY’18 Approved Brownfield Projects During FY’18 the following projects were approved & have not been completed: For personal use only Historical Value of Approved Projects $325.0m gross 39 consulting capital suites investment 340 Gross beds 24 operating 111 Conversions theatres 229 Net beds *Austral
Slide 20: Brownfields Forecast for Completion in FY'19
Brownfields Forecast for Completion in FY’19 Most benefits expected from FY’20 onwards For personal use only $242.0m gross 30 consulting capital suites investment 333 Gross beds 15 operating 117 Conversions theatres 216 Net beds 1 emergency department 20 Results Briefing - Year ended 30 June 2018
Slide 21: Pipeline of acquisition opportunities remains strong
Pipeline of acquisition opportunities remains strong We remain acquisitive, but we will continue to be disciplined in For personal use only our assessment of these opportunities. • Strong balance sheet provides headroom for expansion • Increased focus on new areas of growth and acquisition opportuni
Slide 22: Committed to expanding our pharmacy franchise network
Committed to expanding our pharmacy franchise network For personal use only In December 2017, Ramsay added Queensland’s 18 Malouf pharmacies to its franchise network bringing total number of franchises to 54 Temporarily slowed rollout in order to strengthen the team and supporting infrastructure to
Slide 23: Strengthening the core: strong efficiency agenda
Strengthening the core: strong efficiency agenda For personal use only Operational Excellence Digitalisation Global Procurement Implementation of LEAN to RGDS digitalised patient Strong partnerships with local optimise workforce planning pathway improving access and global suppliers and theatre util
Slide 24: We are building a sustainable organisation
We are building a sustainable organisation For personal use only Patient and Doctor Experience Clinical Excellence Innovation Developing our Talent Rolled out NPS Data collection & benchmarking Innovation Units created in Group Chief People Officer France and Australia appointed Investment in our fa
Slide 25: Outlook
For personal use only 25 Outlook
Slide 26: Outlook
Outlook For personal use only • In FY’19 we expect subdued growth in underlying earnings driven by combination of: continuing challenging circumstances in UK; slower rate of growth in Australia; and neutral outlook in France • We expect growth initiatives including brownfields and investments
Slide 27: Questions
For personal use only 27 Questions