Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2012 Earnings Presentation
31 slides from Ramsay Health Care's earnings presentation, Aug 23, 2012
Slide 1: Financial Results Year ended 30 June 2012
For personal use only Briefing – 23 August 2012 Financial Results Year ended 30 June 2012 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only Group Operational/Financial Highlights – Full-year Financial Highlights – Group Operational Highlights – Group Financial Performance Segment Operational/Financial Highlights – Geographical Segments – Operational/Financial Highlights – Australia/Indonesia, UK & France Bal
Slide 3: FY2012 Group Operational & Financial Highlights
For personal use only Ramsay Health Care Limited FY2012 GROUP OPERATIONAL & FINANCIAL HIGHLIGHTS 3
Slide 4: Full-Year Financial Highlights
FULL-YEAR FINANCIAL HIGHLIGHTS For personal use only Core NPAT up 14.5% to $252.6 million Reported NPAT up 23.0% to 244.1 million Core EPS up 14.8% to 116.1 cents Group revenue up 6.4% to $3.9 billion − Group EBIT up 10.9% to $438.8 million Australia & Indonesia revenue up 7.7% to $3.2 billion − Aus
Slide 5: Group Operational Highlights
GROUP OPERATIONAL HIGHLIGHTS For personal use only Strong growth in our Australian business continues Operating leverage continues to drive margin growth Completed brownfield developments adding to EBIT & EPS Successful refinancing of debt facility in November 2011 $103 million approved for new brow
Slide 6: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only YEAR ENDED 30 JUNE 2012 2011 Increase $m $m % Revenue 3,956.5 3,719.7 6.4% EBITDA 583.5 526.3 10.9% EBIT 438.8 395.5 10.9% Core NPAT (1) 252.6 220.6 14.5% Core EPS (2) (cents per share) 116.1¢ 101.1¢ 14.8% Final Dividend – Fully Franked (cents per sh
Slide 7: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only YEAR ENDED 30 JUNE 2012 2011 Increase $m $m Core NPAT 252.6 220.6 14.5% Non-core items (net of tax)(1) (8.5) (22.2) Reported Net Profit after tax 244.1 198.4 23.0% (1) Non-core items 2012 2011 $m $m Deferred annual non-cash rent expense relatin
Slide 8: Group Core NPAT & Core EPS
GROUP CORE NPAT & CORE EPS For personal use only Core NPAT & Core EPS Compound Annual Growth Rate (CAGR) CAGR = 19.9% $252.6m $220.6m $178.5m $146.4m CAGR = 16.1% 116.1¢ 101.1¢ 84.5¢ Core EPS 74.1¢ Core NPAT FY2009 FY2010 FY2011 FY2012 Group Core NPAT & Group Core EPS in line with upgraded guidance
Slide 9: Dividend Growth
DIVIDEND GROWTH For personal use only Dividends Compound Annual Growth Rate (CAGR) 60.0 CAGR = 16.4% 52.0 34.5 43.5 29.5 38.0 25.0 21.5 25.5 Final Dividend (¢ps) 22.5 fully franked 18.5 16.5 Interim Dividend (¢ps) fully franked FY2009 FY2010 FY2011 FY2012 Final dividend up 16.9% to 34.5 cents, fully
Slide 10: FY2012 Segment Operational & Financial Highlights
For personal use only Ramsay Health Care Limited FY2012 SEGMENT OPERATIONAL & FINANCIAL HIGHLIGHTS 10
Slide 11: Geographical Segments
GEOGRAPHICAL SEGMENTS For personal use only Operating Revenue EBITDAR* 80.3% 74.2% 20.2% 14.2% 5.5% 5.6% Australia/Indonesia Australia/Indonesia United Kingdom United Kingdom France France * EBITDAR (Earnings Before Interest Tax Depreciation Amortisation & Rent ) is the most comparable indicator as
Slide 12: Operational/Financial Highlights – Australia/Indonesia
OPERATIONAL/FINANCIAL HIGHLIGHTS – AUSTRALIA / INDONESIA For personal use only YEAR ENDED 30 JUNE 2012 2011 Increase $m $m Operating Revenue 3,178.8 2,952.6 7.7% EBITDA 482.1 422.1 14.2% EBIT 375.9 322.9 16.4% EBITDA Margin (%) 15.2% 14.3% 87 bps Strong admission growth for Australia Operating lever
Slide 13: Financial Highlights & Operating Environment – Australia
FINANCIAL HIGHLIGHTS & OPERATING ENVIRONMENT – AUSTRALIA For personal use only Positive demographics will continue to drive hospital utilisation As at 30 June 2012, 46.8% of the population (10.59m) hold private hospital treatment insurance An additional 132,000 people joined PHI in the June quarter
Slide 14: Operational/Financial Highlights – United Kingdom
OPERATIONAL/FINANCIAL HIGHLIGHTS – United Kingdom For personal use only 400 350 £353.1m £363.8m 300 250 200 150 100 50 £89.1m £91.0m 0 FY'11 FY'12 Revenue (£m) EBITDAR (£m) Strong admissions growth EBITDAR up 2.1% to £91.0 million despite having to digest the expected change in pricing of the ISTC c
Slide 15: Operational/Financial Highlights – France
OPERATIONAL/FINANCIAL HIGHLIGHTS – France For personal use only 180 Ramsay Santé Ramsay Santé 22% 170 160 (excluding Clinique Convert) €169.2m 150 140 20% 130 €142.4m €143.1m €144.6m 120 110 100 90 18% 80 18.1% 18.3% 18.1% 70 17.8% 60 50 16% 40 30 20 €30.0m 10 €25.8m €26.1m €26.1m 0 14% FY'11 FY'12
Slide 16: FY2012 Balance Sheet
For personal use only Ramsay Health Care Limited FY2012 BALANCE SHEET 16
Slide 17: Leverage & Cash Flow
LEVERAGE & CASH FLOW For personal use only Leverage = Net Debt ÷ EBITDA 6 Affinity Acquisition $1.4B Cash Flow 5.1 $m 5 650 Capio UK 600 Acquisition £193M 550 4 3.7 500 3.3 Ramsay Santé Acquisition €87M 450 3 400 2.7 2.7 2.4 350 1.9 FY 2011 FY2012 2 1.5 Gross Operating Cash Flow EBITDA 1 FY05 FY06 F
Slide 18: Refinancing
REFINANCING For personal use only In November 2011, a new underwritten debt facility was executed. Subsequently this facility was successfully syndicated, primarily to banks from Australia, Japan, UK & Asia The new facility has: − Facility limits of A$1.2 billion, £260 million & €300 million. − Comp
Slide 19: For personal use only
For personal use only 19
Slide 20: Successful & Sustainable Growth Strategy
SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY For personal use only • Underpinned by demographics, quality Organic portfolio of hospitals, ongoing business improvement • Unmet demand driving Ramsay’s ongoing Brownfields investment in capacity expansion Public/Private • Potential for more partnerships to
Slide 21: For personal use only
For personal use only 21
Slide 22: Brownfield Developments Australia
BROWNFIELD DEVELOPMENTS AUSTRALIA For personal use only Proven track record of undertaking successful brownfield expansion Extensive programme of hospital redevelopments & expansions currently underway (>$900 million approved since 2007) During FY2012 $103 million new brownfield developments approve
Slide 23: Brownfield Projects Completed 2012
BROWNFIELD PROJECTS COMPLETED 2012 For personal use only St Andrews Private Hospital, Ipswich: – $8.7 million Operating theatre expansion including new operating theatres & day surgery 23
Slide 24: Brownfield Projects Completed 2012
BROWNFIELD PROJECTS COMPLETED 2012 For personal use only Mt Wilga Private Hospital, North Sydney: – $11.8 million 39 new private beds New therapy areas New gymnasium Warners Bay Private Hospital, Newcastle: – $3.7 million 11 new private beds; Hydrotherapy pool 24
Slide 25: Major Brownfield Projects Under Construction
MAJOR BROWNFIELD PROJECTS UNDER CONSTRUCTION For personal use only Greenslopes Private Hospital, Brisbane: – $47 million Introduction of maternity services 74 new private beds 4 operating theatres & 4 birthing suites Completion: mid 2013 – When completed, Greenslopes Private Hospital will have 644 b
Slide 26: Major Brownfield Projects Under Construction
MAJOR BROWNFIELD PROJECTS UNDER CONSTRUCTION For personal use only Peninsula & Beleura Private Hospitals, Melbourne: – $21 million Additional operating theatres Introduction of cardiac surgery service Intensive Care Unit New private beds Cairns Private Hospital, Cairns: – $5.9 million New operating
Slide 27: Public/Private Collaborations – Joondalup Health Campus
PUBLIC/PRIVATE COLLABORATIONS For personal use only Joondalup Health Campus, Perth: Public/Private hospital in partnership with WA Health Staged opening Completion scheduled for mid 2013 2727
Slide 28: Public/Private Collaborations – Sunshine Coast University Private Hospital
PUBLIC/PRIVATE COLLABORATIONS For personal use only Sunshine Coast University Private Hospital: Public/Private hospital in partnership with QHealth Completion scheduled for Dec 2013 2828
Slide 29: Outlook
For personal use only Ramsay Health Care Limited OUTLOOK 29
Slide 30: Outlook
OUTLOOK For personal use only Completed brownfield projects adding to earnings at EBIT & EPS level – ongoing investment in brownfields at least $100 million per annum UK business well placed to capture further growth in NHS volumes Continue to investigate opportunities in existing & emerging markets
Slide 31: Questions
For personal use only QUESTIONS