Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2021 Earnings Presentation
30 slides from Ramsay Health Care's earnings presentation, Aug 26, 2021
Slide 1: Ramsay Health Care FY21 Result Presentation
Ramsay Health Care 2021 International Year of Health & Care Workers FY21 Result Presentation 12 months ended 30th June 2021 Managing Director & CEO, Craig McNally Group Chief Financial Officer, Martyn Roberts ramsayhealth.com
Slide 2: Important information
Important information The information in this presentation is general background information about Ramsay Health Care Limited and its subsidiaries (Ramsay Group) and their activities and is current as at 26 August 2021. It is in summary form and is not necessarily complete. It should be read togethe
Slide 3: Agenda
Agenda 1. Key Themes 2. Response to COVID-19 3. Group FY21 Financial Highlights Segment Performance 4. Regional Highlights and Outlook 5. Group Financials Group Performance Overview 6. Strategic Direction and Group Outlook 7. Questions Segment Performance For further information please contact: Kell
Slide 4: Key Themes
Key Themes Ramsay employees, doctors and facilities continued to support the public sector and community response to the rapidly changing demands of the COVID environment Operational and financial metrics reflect pandemic disruption; results improving as the business adapts to the unpredictable oper
Slide 5: Group FY21 Financial Highlights
Group FY21 Financial Highlights ➢ Revenue from patients increased 3.9% and reflects the impact of Result $'m % chg on pcp operational restrictions across the regions due to COVID and lower Revenue from patients and other revenue 12,435.5 3.9 demand for non surgical services Total Revenue including g
Slide 6: Australia – Highlights and Outlook
Australia – Highlights and Outlook Results for 12 months to 30th June 2021 ($’m) Result Overview 5,430 5,037 • Lock-downs and the increased costs of doing business due to COVID impacted FY21 results: 7.8% • The extended lock-down in Victoria (Vic.) in 1HFY21 and multiple snap lock-downs in 2HFY21 –
Slide 7: Trends in Australian Hospital Admissions
Trends in Australian Hospital Admissions Group Performance Overview Segment Performance 7 FY21 Results Briefing - 12 Months Ended 30 June 2021 *July 2021 is vs July 2020
Slide 8: Australia – Significant pipeline of new developments
Australia – Significant pipeline of new developments FY21 FY22 FY23 - FY25 Brownfields/greenfield capital expenditure • Brownfield/greenfield capital expenditure • Strong brownfield/greenfield pipeline $140m. spend in FY22 - $260 - 340m. identified will drive $250 - $400m Projects completed during t
Slide 9: UK – Highlights and Outlook
UK – Highlights and Outlook Result for 12 months to 30th June ($’m) Result Overview • Supported the NHS with facilities and services under net cost recovery 770.8 arrangements 606.5 • The decline in net patient revenue reflects capacity restrictions in place during the (21.3)% 417.6 period and the i
Slide 10: Europe – Ramsay Santé Highlights and Outlook
Europe – Ramsay Santé Highlights and Outlook Result Overview • Santé continued to assist Governments across the regions treating COVID patients. Result for 12 months to 30th June ($’m) The result includes revenue and cost compensation for the use of Ramsay’s facilities 6,399 6,163 and services and f
Slide 11: Asian Joint Venture – Ramsay Sime Darby (RSD)
Asian Joint Venture – Ramsay Sime Darby (RSD) Result Overview Equity Accounted Contribution Year Ended 30 June • The equity accounted contribution from RSD declined 32% on the pcp to (A$’m) $10.8m impacted by an impairment taken against the Hong Kong operation and a significantly higher tax rate due
Slide 12: Group Financials
Group Financials Group CFO Martyn Roberts
Slide 13: FY21 Group Performance
FY21 Group Performance ➢ “Revenue from governments under COVID-19 support contracts” Twelve months Ended 30 June $'m 2021 2020 reflects payments made under arrangements with state Revenue from patients and other revenue 12,435.5 11,970.7 governments in Australia and the NHSE¹ in the UK to make Reven
Slide 14: Cashflow
Cashflow Twelve months ended 30 June A$'m 2021 2020 Chg (%) ➢ The 2020 change in working capital reflected the impact of cash EBITDA 2,053.5 1,808.2 13.6 advances received from the French government in relation to the Changes in working capital (72.7) 435.0 (116.7) revenue guarantee scheme. So far t
Slide 15: Capital Expenditure
Capital Expenditure FY21 and FY22F Capital Expenditure by FY22F Group Capital Expenditure by Region (%) FY22F Group Capital Expenditure by Type (%) Region $’m 900-1,100 35 674 43 45 43 400-500 400-460 260 356 100-140 58 8 15 Asia Pacific UK Europe Group 12 FY21 FY22F Asia Pacific UK Sante Routine &
Slide 16: Capital Employed and Balance Sheet
Capital Employed and Balance Sheet A$'m 30/06/2021 31/12/2020 30/06/2020 Working capital (802.9) (1,225.0) (875.6) ➢ The movement in “Other assets” and “Net debt” primarily relates to Property plant & equip 4,488.6 4,466.6 4,447.2 the funding drawn down and held in escrow for the Spire⁴ transaction
Slide 17: Leverage and Capital Management
Leverage and Capital Management ➢ Ascribed investment grade rating of BBB (Stable) by Fitch in May 2021 ➢ The funds drawn down and held in escrow for the Spire transaction ($1.96bn) were treated as current assets, impacting leverage metrics at 30th June. Proforma debt, leverage and return metrics (a
Slide 18: Strategy and Outlook
Strategy and Outlook Managing Director and CEO Craig McNally
Slide 19: Group Strategy
Group Strategy Create the leading ecosystem for patient-centric, integrated care Growth Efficiency Sustainability By growing, modernising and Moving purposefully into Strengthening the core through leveraging our World Class New and Adjacent Services strategic sourcing and Hospital Network operation
Slide 20: Group Outlook
Group Outlook » The FY22 results will be impacted by the effectiveness of the world’s ongoing response to the COVID pandemic including the success of global vaccinations programs in reducing the number and severity of COVID cases » Ramsay’s response to the imposts of the COVID environment continue t
Slide 21: Questions
Questions Strictly Confidential
Slide 22: FY21 Final Results - Presentation Speech
RAMSAY HEALTH CARE FY21 Final Results - Presentation Speech 26th August 2021 Slide 1 Front Cover Good morning everyone and thank you for joining us for our FY21 results presentation webcast. My name is Craig McNally, and I am the Managing Director & CEO of Ramsay Health Care, and I am joined by Mart
Slide 23: Speech: balance sheet and cashflow remain strong
Our balance sheet and cashflow remain strong and will support ongoing investment in the business. We have a significant pipeline of growth opportunities and we continue to explore strategic options to invest to build scale or move into new or adjacent healthcare services all the while remaining focu
Slide 24: Speech: recovery in volumes and FY22 outlook
good recovery in volumes in both surgical and non-surgical services in between the disruption of snap lock-downs across all states. The EBIT impact of the Victorian lock-down in the first half was estimated to be $70m and the impact of multiple lock-downs in the second half of the fiscal year is est
Slide 25: Speech: admissions trends in Australia
with the second half of FY19 for both surgical and non-surgical admissions per workday. We have excluded Mildura public hospital from the metrics given the operation of the facility was handed back to the Victorian Government in September 2020. You can see that when states are not in lock-down activ
Slide 26: Speech: development pipeline and UK highlights
In addition to our development pipeline, the Western Australian and Federal governments have committed to a $256.7m expansion of the Joondalup public hospital expected to be fully completed in mid-2025. The expansion includes 90 inpatient beds, six new critical care beds, 30 new mental health beds,
Slide 27: Speech: Europe and Nordic results
environment. Across the Nordic regions we were also provided with financial payments in return for our services. The Nordics strong result reflects the different nature of services provided being more focused on primary care and the capitation model of payment in Sweden, combined with the lesser imp
Slide 28: Speech: Group Financials, CFO remarks
Slide 12 - Group Financials Slide 13 FY21 Group Performance Thanks Craig and good morning everyone. Can I also extend my sincere thanks to our team around the world who have worked in extremely difficult circumstances to deliver this result today. As Craig has highlighted the operating environment o
Slide 29: Speech: capital employed, balance sheet and refinancing
strategies in the UK and Europe. We will continue to apply a disciplined return lens to this investment. Slide 16 Capital Employed and Balance Sheet Moving on to our balance sheet, as I mentioned, at 30th June we were in the middle of the proposed scheme of arrangement with Spire with funds for the
Slide 30: Speech: strategy and Group outlook
➢ Growing, modernising, and leveraging our world-class hospital network through both organic growth opportunities and strategic acquisitions where the financial metrics make sense for the business longer term; ➢ Continuing to move into new and adjacent services that enhance the existing business and