Life Healthcare Group Holdings Limited · JSE:LHC
Life Healthcare — FY2024 Earnings Presentation
26 slides from Life Healthcare's earnings presentation, Sep 30, 2024
Slide 1: Summarised Group results for the 12 months ended 30 September 2024
Summarised Group results for the 12 months ended 30 September 2024 and cash distributions
Slide 2: Highlights
HIGHLIGHTS Leading provider of value-based care Patient-centred care through innovative Acute PPD¹ Strong revenue Revenue contracting and Concluded FMC3 reimbursement models Southern growth growth and margin growth SA renal business Africa (SA) improvement² in 7.7% acquisition Diversified 1.6% H
Slide 3: Highlights
HIGHLIGHTS Leading provider of value-based care Patient-centred care through innovative contracting and reimbursement models Final dividend Total dividend Diversified offering 31.0 cps FY2024 Revenue growth NEPS 14.8 % With an expansion Group into integral diagnostic and 12.7% 48.5% 720 cps ad
Slide 4: Strategy
STRATEGY
Slide 5: Strategy on a page
STRATEGY | ON A PAGE Grow and re-structure our Expand complementary services Value-based acute network care contracting Innovative Facility Drive Imaging contracting, optimisation underlying Mental Acute Renal and nuclear Oncology LHS PPPs LMI reimbursement and growth activities health rehab dialysi
Slide 6: Who we are | Our portfolio
WHO WE ARE | OUR PORTFOLIO International Southern Africa ▪ Life Molecular Imaging (LMI) ▪ 71 healthcare facilities Southern Africa ▪ Acute hospitals: ▪ Employer based on-site ▪ 48 facilities occupational health and ▪ 8 308 beds wellness ▪ Mental health facilities: ▪ 2 cyclotrons ▪ 9 facilities ▪ 3 P
Slide 7: Who we are | Our portfolio
WHO WE ARE | OUR PORTFOLIO International Southern Africa ▪ Life Molecular Imaging (LMI) ▪ 71 healthcare facilities Southern Africa ▪ Acute hospitals: ▪ Employer based on-site ▪ 48 facilities occupational health and ▪ 8 308 beds Complementary growth since 2021 wellness ▪ Mental health facilities: ▪ 2
Slide 8: SA Operational Review
e Life. Healthcare SA OPERATIONAL REVIEW
Slide 9: YTD 2024 | Southern Africa
YTD 2024| SOUTHERN AFRICA Revenue by segment Occupancy split % 25,000 23 674 2 21 985 3 1,330 8 8 19 971 1,320 2,045 19 14 20,000 1,612 1,356 35 1,339 15,000 47 42 36 10,000 19,053 20,299 31 17 276 55 5,000 FY2022 FY2023 FY2024 < 60% 60-69% 70-79% 80%+ 0 FY2022 FY2023 FY2024 Overall occupancy¹ % Acu
Slide 10: YTD 2024 Acute hospitals | Strong H2-2024
YTD 2024 ACUTE HOSPITALS | STRONG H2-2024 Occupancy1 % 68.7 vs 2023 67.7 H1-2024 H2-2024 FY2024 61.0 PPDs 2.7% 0.7% 1.6% Revenue / PPD 2.8% 6.5% 4.7% Revenue 5.5% 7.5% 6.5% FY2022 FY2023 FY2024 Normalised EBITDA2 15.0% / 16.6% 15.9% / 15.8% 15.4% / 16.2% ▪ Occupancy % 68.7% Continued improvement in
Slide 11: YTD 2024 Complementary services | Strong H2-2024
YTD 2024 COMPLEMENTARY SERVICES | STRONG H2-2024 MH & AR Occupancy1 % RD2 treatments Imaging volumes 369 106 44 482 73.5 38 008 71.7 69.1 214 761 18 675 198 227 180 924 FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 Incl FMC ▪ Revenue 26.9% Acquisition of FMC renal – additional R308m
Slide 12: Life Molecular Imaging (LMI) Review
LIFE MOLECULAR IMAGING (LMI) REVIEW
Slide 13: LMI | Ambitious growth trajectory achieved through 3 pathways
LMI | AMBITIOUS GROWTH TRAJECTORY – ACHIEVED THROUGH 3 PATHWAYS 1 2 3 MAXIMISE PRODUCT S U S TA I N R & D * DELIVER PIPELINE SERVICES & SUPPLIES NeuraCeq® demand is expected to increase Promising pipeline of 5 Offering R&D as a service to significantly, driven by growing patient demand potential new
Slide 14: LMI | Activities
LMI| ACTIVITIES LMI revenue USD’m NeuraCeq® volumes 100 20 578 73 36 RM2 7 697 12 097 36 3 444 8 481 5 858 4 253 12 881 27 64 4 864 20 3 707 8 653 17 3 023 37 4 228 1 841 2 151 H1 23 H2 23 H1 24 H2 24 FY2024 H1 23 H2 23 H1 24 H2 24 FY2024 Commercial R&D ▪ The LMI revenue includes $36 million from a
Slide 15: Financial Review
e Life. Healthcare FINANCIAL REVIEW
Slide 16: FY 2024 | Results overview
FY 2024| RESULTS OVERVIEW Group revenue SA revenue LMI revenue Strong activity drivers result in strong revenue growth 12.7% 7.7% 181.3% Operational performance Group normalised EBITDA Group operating profit RM2 contribution to bolstered by the RM2 sub- normalised EBITDA licensing transaction
Slide 17: FY 2024 | Statement of profit or loss from continuing operations
FY 2024| STATEMENT OF PROFIT OR LOSS FROM CONTINUING OPERATIONS 2024 2023 % R’m R’m Notes change Revenue 25 519 22 641 1 12.7 1. Revenue growth boosted by PPD growth of 1.6¹ % in acute, improved revenue / PPD in H2-2024, NeuraCeq® Normalised EBITDA 4 310 3 594 2 19.9 doses sold (up 91.9%) and the RM
Slide 18: YTD 2024 | Southern Africa
YTD 2024| SOUTHERN AFRICA 2024 2023 H1-2024 H1-2023 H2-2024 H2-2023 R'm R'm % R'm R'm % R'm R'm % ▪ Revenue growth: Revenue ▪ Strong H2-2024 acute and Southern Africa complementary growth of Hospitals 20 299 19 053 6.5 9 698 9 190 5.5 10 601 9 863 7.5 10.4% Complementary services 2 045 1 612 26.9 83
Slide 19: FY 2024 | Earnings per share
FY 2024 | EARNINGS PER SHARE 2024 2023 % change ▪ The total net gain recognised on Weighted average number of shares (million) 1 443 1 442 0.1 disposal of AMG in FY2023 and FY2024 is R1.8 billion ▪ EPS / HEPS from continuing EPS from continuing operations (cents) 137.8 87.0 58.4 operations impacted
Slide 20: FY 2024 | Financial position
FY 2024 | FINANCIAL POSITION 2024 2023 R’m R’m Non-current assets 16 809 16 201 ▪ Strong balance sheet Property, plant and equipment 10 765 10 572 ▪ Capex spend in 2024 of R1.6 billion Goodwill & Intangibles 3 570 3 287 ▪ Acquisitions of R421 million Other 2 474 2 342 ▪ Capex commitments FY2025 of C
Slide 21: FY 2024 | Debt
FY 2024 | DEBT ▪ The Group refinanced some of its South African debt thereby extending debt maturities and lowering margins on interest relative to reference rates ▪ The Group is in process of acquiring a property – included in short term portion of lease liabilities ▪ Debt maturity: Balance at Matu
Slide 22: FY 2024 | Cash flow from continuing operations
FY 2024 | CASH FLOW FROM CONTINUING OPERATIONS 2024 2023 % R’m R’m change Cash generated from operations 4 330 3 653 18.5% ▪ Good cash generated from Transaction costs paid (11) (12) operations Net interest and tax paid (871) (1 139) ▪ Cash generated boosted by LMI’s Maintenance capex (1 168) (1 157
Slide 23: FY 2024 | Dividends
FY 2024| DIVIDENDS 2023 2023 2024 2024 Increase cps Rm cps Rm % Interim 17 249 19 279 11.8 Final 27 396 31 455 14.8 Total 44 645 50 734 13.6 1st Special - - 600 8 804 2nd Special - - 70 1 027 Total 44 645 720 10 565 • Final dividend: to be paid in December 2024 • 2nd special dividend: to be paid in
Slide 24: 2025 Outlook
e Life. Healthcare 2025 OUTLOOK
Slide 25: FY 2025 | Outlook statement
FY 2025 | OUTLOOK STATEMENT ▪ Growth plans: ▪ 219 beds: ▪ 79 beds in FY2025 Grow ▪ Commence build of 140 bed hospital ▪ Imaging transactions underway ▪ New PET-CT sites Southern Africa Drive ▪ Occupancies to 70% through PPD growth of 1.0% - 1.5% ▪ Focus on operational efficiencies ▪ Embed FMC renal
Slide 26: Questions
e Life. Healthcare QUESTIONS
Life Healthcare Group Holdings — FY2024 Earnings Presentation on 6ix