Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2013 Earnings Presentation
31 slides from Ramsay Health Care's earnings presentation, Aug 29, 2013
Slide 1: Results Briefing Year ended 30 June 2013
Ramsay Health Care Limited For personal use only Results Briefing Year ended 30 June 2013 Christopher Rex, Managing Director 29 August 2013
Slide 2: Agenda
AGENDA For personal use only 1. Group Operational and Financial Highlights 2. Segment Operational and Financial Highlights 3. Growth Strategy Update – Brownfield Developments – Public/Private Collaborations – Acquisitions 4. Outlook 2
Slide 3: Group Operational and Financial Highlights
Group Operational and Financial Highlights 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only • Core NPAT up 15.1% to $290.9 million • Core EPS up 17.1% to 135.9 cents • Group: − Revenue up 5.5% to $4.2 billion − Group EBIT up 10.6% to $485.3 million • Australia and Indonesia: − Revenue up 6.8% to $ 3.4 billion − EBIT up 11.2% to $418.2 million • Eu
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only • Solid performance across worldwide portfolio • Increased number of public/private collaborations with purchase of Peel Health Campus - a public hospital in WA • Expanded our Asian operations with completion of JV with Sime Darby on 1 July 2013 • Acquire
Slide 6: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only 2013 2012 YEAR ENDED 30 JUNE Increase $m $m Revenue 4,174.5 3,956.5 5.5% EBITDAR 736.8 690.2 6.8% EBITDA 627.7 583.5 7.6% EBIT 485.3 438.8 10.6% Core NPAT (1) 290.9 252.6 15.1% Core EPS (2) (cents per share) 135.9¢ 116.1¢ 17.1% Final Dividend – fully
Slide 7: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only 2013 2012 YEAR ENDED 30 JUNE Increase $m $m Core NPAT 290.9 252.6 15.1% Non-core items (net of tax) – Income tax refund relating to changes to tax consolidation - 17.1 legislation – Other non-core Items (net of tax) (1) (24.5) (25.6) Reported N
Slide 8: Group Core NPAT and Core EPS Growth
GROUP CORE NPAT and CORE EPS GROWTH For personal use only Core NPAT and CORE EPS Compound Annual Growth Rate (CAGR) CAGR = 17.7% $290.9m $252.6m $220.6m $178.5m CAGR = 17.2% 135.9¢ 116.1¢ 101.1¢ Core EPS 84.5¢ Core NPAT FY2010 FY2011 FY2012 FY2013 • Core NPAT and Core EPS slightly ahead of upgraded
Slide 9: Dividend Growth
DIVIDEND GROWTH For personal use only Total Dividends Compound Annual Growth Rate (CAGR) Total Dividends 70.5¢ CAGR = 17.5% 60.0¢ 52.0¢ 43.5¢ 41.5 34.5 29.5 Final Dividend 25.0 (cents/share) Interim Dividend 25.5 29.0 (cents/share) 18.5 22.5 FY2010 FY2011 FY2012 FY2013 • Final dividend fully franked
Slide 10: Leverage and Cash Management
LEVERAGE and CASH MANAGEMENT For personal use only Leverage* Cash Flow 6x Affinity Acquisition $1.4B $m 5.1 650 5x Capio UK 600 Acquisition £193M 550 4x 3.7 500 Ramsay Santé 3.3 450 Acquisition €87M 400 3x 350 2.7 2.7 2.4 300 1.9 FY'12 FY'13 2x 1.5 1.6 Gross Operating Cash Flow EBITDA 1x FY'05 FY'06
Slide 11: Segment Operational and Financial Highlights
Segment Operational and Financial Highlights 11
Slide 12: Geographical Segments
GEOGRAPHICAL SEGMENTS For personal use only Operating Revenue EBITDAR 5% 5% 13% 19% 2% 2% 74% 80% Australia Australia Indonesia* Indonesia* United Kindom United Kingdom France France Strong Australian business is the largest contributor to earnings and cash flow * On 1 July 2013 Ramsay’s Indonesian
Slide 13: Operational/Financial Highlights – Australia
OPERATIONAL/FINANCIAL HIGHLIGHTS – AUSTRALIA For personal use only • Revenue up 7% to $3.3 billion • EBIT up 11% to $410 million • Australian hospitals EBITDA margin up 50 bps to 17.9% • PHI membership up – 47% of population insured (June Qtr) • Completed major hospital expansions including $47m dev
Slide 14: Operational/Financial Highlights – Indonesia
OPERATIONAL/FINANCIAL HIGHLIGHTS – INDONESIA For personal use only 2013 2012 YEAR ENDED 30 JUNE Increase IDR’000 IDR’000 Revenue 673.2 603.6 11.5% EBITDAR 120.7 100.4 20.2% EBIT 79.3 61.9 28.0% Margins: EBITDAR 17.9% 16.6% +130 bps EBIT 11.8% 10.3% +151 bps • Solid performance for the year • Revenue
Slide 15: Operational/Financial Highlights – United Kingdom
OPERATIONAL/FINANCIAL HIGHLIGHTS – UNITED KINGDOM For personal use only 2013 2012 YEAR ENDED 30 JUNE Increase £m £m Revenue 365.6 363.8 0.5% EBITDAR 93.4 91.0 2.6% EBIT 31.8 30.0 6.1% Margins: EBITDAR 25.5% 25.0% +52 bps EBIT 8.7% 8.2% +46 bps • Ramsay’s UK business exceeded expectations with EBITDA
Slide 16: Operational/Financial Highlights – France
OPERATIONAL/FINANCIAL HIGHLIGHTS – FRANCE For personal use only 2013 2012 YEAR ENDED 30 JUNE Increase €m €m Revenue 174.3 169.2 3.0% EBITDAR 31.4 29.9 4.9% EBIT 14.2 13.4 5.7% Margins: EBITDAR 18.0% 17.7% +32 bps EBIT 8.1% 7.9% +21 bps • Ramsay Santé performed well with EBITDAR increasing by 4.9% •
Slide 17: For personal use only
For personal use only 17
Slide 18: Delivering on Growth Strategy
DELIVERING ON GROWTH STRATEGY For personal use only Sustainable growth enhanced by focusing on hospitals and taking a prudent approach to acquisitions Brownfield Creation of Public/Private Organic + Capacity + Collaborations + Acquisitions Shareholder Expansion Value Underpinned by Unmet demand Pote
Slide 19: Brownfield Developments
Brownfield Developments 19
Slide 20: Brownfield Developments - Australia
BROWNFIELD DEVELOPMENTS - AUSTRALIA For personal use only Completed projects during the year: • $47m development at Greenslopes Private, Brisbane • $10m expansion at Beleura Private, Melbourne • $133m new Joondalup Private Hospital opened on the Joondalup Health Campus, Perth 20
Slide 21: Brownfield Developments - Australia
BROWNFIELD DEVELOPMENTS - AUSTRALIA For personal use only Over $200m approved for new projects during the year including: • $64m expansion of Hollywood Private, Perth • $56m for expansion of Warringal Private, Melbourne • $34m for expansion of Pindara Private, Gold Coast • $20m for expansion of Kare
Slide 22: Public/Private Collaborations
Public/Private Collaborations 22
Slide 23: Public/Private Collaborations
PUBLIC/PRIVATE COLLABORATIONS For personal use only Existing public/private collaborations: • Joondalup Health Campus, WA • Noosa Hospital, Qld • Mildura Base Hospital, Vic • Peel Health Campus, WA • Sunshine Coast University Private Hospital, Qld (due to open Dec 13) Further opportunities starting
Slide 24: Peel Health Campus WA
PEEL HEALTH CAMPUS WA For personal use only Peel Health Campus in Mandurah, WA: − 152 bed public hospital − Located in southern Perth − Offers medical, surgical, maternity and rehabilitation services − Over 40,000 emergency presentations per annum − Immediate opportunity to further develop both publ
Slide 25: Sunshine Coast University Private Hospital
SUNSHINE COAST UNIVERSITY PRIVATE HOSPITAL For personal use only On track to open in December 2013 in partnership with Qld Health 25
Slide 26: For personal use only
For personal use only 26
Slide 27: Expansion in Asia
EXPANSION IN ASIA For personal use only • JV with Sime Darby is first major step into Asia since acquiring Indonesian hospitals in 2005 • Aim of the joint venture will be to build a quality portfolio of hospitals throughout Asia • 600 million people in ASEAN with rising middle class demanding qualit
Slide 28: Expansion in France
EXPANSION IN FRANCE For personal use only Clinique de l’Union Toulouse, France: • Acquired 7 June 2013 • A leading 531 bed medical, surgical, obstetric hospital • 43,000 inpatients and 26,000 emergency presentations pa • Gross revenue circa €65 million • Excellent addition to the French portfolio 28
Slide 29: Outlook
RAMSAY People caring for people FRING Outlook
Slide 30: Outlook
OUTLOOK For personal use only • Continue to produce increasing benefits from our successful capacity expansion programme in Australia • In Australia, look to further our involvement in emerging public/private opportunities • Further develop and execute a growth plan with Sime Darby for Asia • Integr
Slide 31: Questions?
RAMSAY HEALTH € CARE Questions?