Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2016 Earnings Presentation
34 slides from Ramsay Health Care's earnings presentation, Aug 30, 2016
Slide 1: Results Briefing: Year ended 30 June 2016
For personal use only Ramsay Health Care Limited RESULTS BRIEFING Year ended 30 June 2016 Christopher Rex, Managing Director 30 August 2016 ramsayhealth.com
Slide 2: Agenda
Agenda For personal use only 1. Group Operational and Financial Highlights 2. Segment Operational and Financial Highlights 3. Growth Strategy Update 4. Acquisitions & Strategic Developments 5. Outlook 2
Slide 3: Ramsay Health Care
Ramsay Health Care For personal use only Over Operating Admit Ranked in 50 years across over 3 million the top 5 experience 6 countries patients private hospital in operating operators in hospitals the world 3
Slide 4: Our comprehensive network
Our comprehensive network For personal use only 223 Hospitals 25,000 Hospital 1.4M Operations beds 38 Emergency 63,000 Babies departments delivered 60,000 200 Pharmacies employees 4
Slide 5: Delivering Safe & Quality Healthcare
Delivering Safe & Quality Healthcare For personal use only Commenced Commenced All-time record Commenced Following longitudinal rollout of achieved for lost Antimicrobial France’s lead, we international Vanderbilt time injury Stewardship centralised our studies of program frequency rate trial to imp
Slide 6: Group Operational and Financial Highlights
For personal use only Group Operational and Financial Highlights
Slide 7: Financial Highlights
Financial Highlights For personal use only • Core NPAT up 16.8% to $481.4 million • Core EPS up 17.7% to 231.4 cents • Group: − Revenue up 18.1% to $8.7 billion − Group EBIT up 11.6% to $897.1 million • Australia/Asia: − Revenue up 8.8% to $4.4 billion − EBIT up 11.6% to $581.8 million • United King
Slide 8: Operational Highlights
Operational Highlights For personal use only • Solid growth with all segments performing at or above expectations • Integration of Ramsay Santé and Générale de Santé completed on 1 July 2015. Combined Group performing well • Acquired a further nine hospitals in Lille, France (completed December 2015
Slide 9: Group Financial Performance
Group Financial Performance For personal use only Year Ended 30 June 2016 2015 Increase Revenue 8,684.1 7,355.5 18.1% EBITDAR 1,669.4 1,412.0 18.2% EBITDA 1,268.9 1,106.3 14.7% EBIT 897.1 803.9 11.6% Core NPAT (1) 481.4 412.1 16.8% Core EPS (2) (cents per share) 231.4¢ 196.6¢ 17.7% Final Dividend –
Slide 10: Reconciliation To Statutory Reported Profit
Reconciliation To Statutory Reported Profit For personal use only Year Ended 30 June 2016 2015 Increase Core NPAT 481.4 412.1 16.8% Net non-core items, net of tax (1) (31.1) (26.6) Statutory Reported Net Profit after tax 450.3 385.5 16.8% attributable to members of the Parent (1) Net non-core items
Slide 11: Core NPAT & Core EPS
Core NPAT & Core EPS Compound Annual Growth Rate (CAGR) For personal use only Core NPAT CAGR = 18.3% 481.4 412.1 346.2 290.9 Core EPS CAGR = 19.4% 231.4 196.6 163.9 135.9 FY2013 FY2014 FY2015 FY2016 Core EPS (cents/share) Core NPAT (A$m) • Core NPAT and Core EPS slightly ahead of upgraded (Feb’16) g
Slide 12: Dividend Growth
Dividend Growth Compound Annual Growth Rate (CAGR) For personal use only Total Dividend 119.00 CAGR = 19.1% 101.00 85.00 72.00 70.50 60.50 51.00 41.50 Final Dividend (cents/share) 40.50 47.00 29.00 34.00 Interim Dividend (cents/share) FY2013 FY2014 FY2015 FY2016 • Final dividend fully franked, up 19
Slide 13: Core EPS & Dividend Growth
Core EPS & Dividend Growth Compound Annual Growth Rate (CAGR) since listing For personal use only 280.0 Core EPS Growth ¢/share 240.0 • Core Earnings per Share (EPS) CAGR 16.8% 200.0 160.0 Core EPS 120.0 CAGR 80.0 40.0 - 125.0 Dividend Growth ¢/share 100.0 • Dividend Growth CAGR 16.7% 75.0 Dividend
Slide 14: Leverage & Cash Management
Leverage & Cash Management For personal use only Consolidated Balance Sheet Leverage Ratio* 6x Affinity Acquisition 5.1 • Strong operating cash flow with 5x high cash conversion rate Capio UK Acquisition • Strong balance sheet with 4x Ramsay Santé financial flexibility to continue to Acquisition Gén
Slide 15: Segment Operational and Financial Highlights
For personal use only Segment Operational and Financial Highlights
Slide 16: Our current operating environments
Our current operating environments For personal use only Australia 1. Volumes and operations continue to trend upwards as expected due to the ageing and growing population 2. Increasing demand for quality services continues to drive brownfield investment 3. Private health care sector remains robust
Slide 17: Financial Performance: Australia & Asia
Financial Performance Australia & Asia 8.8 For personal use only % 4,413.6 4,055.5 10.6 10.4 % % 685.4 651.5 757.9 719.5 FY 2015 FY 2016 Revenue ($m) EBITDAR ($m) EBITDA ($m) Note: The above figures include Head Office Australian Hospital Operations • Strong organic growth on the back of strong admi
Slide 18: Our current operating environment: France
Our current operating environment For personal use only France 1. Good volume growth across most major specialties 2. Excellent growth in emergency attendances - up 8% on prior year 3. Strong quality portfolio of hospitals FRANCE - leader in the market 4. Currently a challenging political environmen
Slide 19: Financial Performance: France
Financial Performance France 27.3 For personal use only % 2,226.9 1,749.5 21.8 % 14.6 % 365.5 445.4 239.0 274.0 FY 2015 FY 2016* Revenue (€m) EBITDAR (€m) EBITDA (€m) • Integration of Ramsay Santé and Générale de Santé (RGdS) completed • The combined group performed well in a challenging environment
Slide 20: Our current operating environment: UK
Our current operating environment For personal use only UK 1. Record referrals being achieved through NHS Choose and Book to Ramsay facilities 2. Ramsay UK remains leader in NHS referrals 3. NHS over 75% of our patients and growing 4. Six Ramsay UK facilities scored in the top 15 hospitals in the UK
Slide 21: Financial Performance: United Kingdom
Financial Performance United Kingdom For personal use only 4.0 % 413.2 429.6 5.0 % 6.7 % 106.5 111.9 59.3 63.3 FY 2015 FY 2016 Revenue (£m) EBITDAR (£m) EBITDA (£m) • Ramsay’s UK business continues to perform well with EBIT rising 9.5% to £44.3 million • EBITDAR margins remain strong at 26.1% • NHS
Slide 22: Growth Strategy Update
For personal use only Growth Strategy Update
Slide 23: Delivering on our Growth Strategy
Delivering on our Growth Strategy For personal use only Creating shareholder value through our focused strategy ORGANIC BROWNFIELD PUBLIC/PRIVATE ACQUISITIONS GROWTH CAPACITY COLLABORATIONS & STRATEGIC EXPANSION DEVELOPMENTS Underpinned by Unmet demand driving Global focus on Exploring acquisitions
Slide 24: Brownfield developments
Brownfield developments For personal use only Overview In FY16, across the Group Ramsay Health Care completed: Over $300M of Over 500 beds 26 operating developments theatres 24
Slide 25: Major brownfields opened in FY16
Major brownfields opened in FY16 For personal use only Hollywood Private Cairns Private Lake Macquarie (90 beds; 6 theatres) (56 beds) Emergency Department Joondalup Health Campus St George Private Hospital Beleura Rehabilitation Centre (30 bed paediatric wing) (35 beds; 4 operating theatres) (30 be
Slide 26: New hospital completion
New hospital completion For personal use only Wollongong Private Hospital opened in January 2016 with 151 beds and 10 theatres. The all new hospital has attracted new doctors and will stem the outflow of Wollongong patients to Sydney. 26
Slide 27: Pipeline of Developments
Pipeline of Developments For personal use only Brownfield developments due to open this calendar year: • North Shore Private North Shore Private Hospital extension under construction Hospital • Peninsula Private Hospital • New Farm Clinic • Waverley Private Hospital • Baringa Private Hospital Penins
Slide 28: Pipeline of Developments (continued)
Pipeline of Developments (continued) For personal use only Over $200M of future developments approved during FY16 including: • Major expansion of St Andrew’s Private Hospital in Ipswich, Greater Brisbane • New Northside Clinic, Sydney • Albert Road Clinic expansion, Melbourne • Purchased land adjace
Slide 29: Acquisitions & Strategic Developments
For personal use only Acquisitions & Strategic Developments
Slide 30: Acquisitions & Strategic Developments
Acquisitions & Strategic Developments For personal use only France • Ramsay Générale de Santé acquired the HPM Group in December 2015 • The HPM Group includes nine hospitals in Lille, France Australia Clinique Ambroise Paré • Ramsay appointed to operate hospital at the new Albury Wodonga Regional Ca
Slide 31: Ramsay Pharmacy
Ramsay Pharmacy For personal use only • Over 200 hospital pharmacy dispensaries already operating across global hospital portfolio • In process of establishing strategically located community pharmacies across Australia, concentrating initially in close proximity to our hospitals • Specialised medic
Slide 32: Outlook
For personal use only Outlook
Slide 33: Outlook
Outlook For personal use only • Demand for healthcare continues to be driven by population ageing, growth and expectations, emerging technology and the rising rate of chronic disease • We continue to invest in our facilities and our people to ensure that we can meet the expectations of patients and
Slide 34: Questions
For personal use only Questions