Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2007 Earnings Presentation
23 slides from Ramsay Health Care's earnings presentation, Aug 27, 2007
Slide 1: Financial Results Briefing – 27 August 2007
For personal use only Financial Results Briefing – 27 August 2007 Year ended 30 June 2007 Managing Director Pat Grier
Slide 2: Financial Year Overview
FINANCIAL YEAR OVERVIEW Slide No. 1 For personal use only Strong profit growth with hospital margin improvement Very pleasing result - Core EPS increase of 21% ahead of guidance of 15%-20% growth Hospitals performed strongly in every state over the year Growth achieved despite dilutionary im
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Slide No. 2 For personal use only Revenue from continuing operations up 6% to $2.1 billion Core net profit from continuing operations up 21% to $110.9 million Core EPS from continuing operations up 21% to 54.9 cents Basic EPS up 23% to 52.6 cents Group EBITDA margin fr
Slide 4: Financial Performance
FINANCIAL PERFORMANCE Slide No. 3 For personal use only Year ended 30 June 2006 2007 $m $m % incr. Continuing Operations: Operating Revenue 1,978.0 2,105.9 6% EBITDA 252.3 273.4 8% EBIT 194.2 212.5 9% Core NPAT – continuing operations 91.9 110.9 21% Core NPAT – divested operations 1.3 (0.8) Less spe
Slide 5: Financial Performance
FINANCIAL PERFORMANCE Slide No. 4 For personal use only Year ended 30 June 2006 2007 % incr. EPS: Core NPAT – continuing operations $91.9m $110.9m 21% Core EPS – continuing operations 45.3c 54.9c 21% Basic EPS 42.7c 52.6c 23% Dividends: Final dividend - fully franked 13.5c 16.0c 19% Full year divide
Slide 6: Strong EBIT Growth
STRONG EBIT GROWTH Slide No. 5 For personal use only $m 212.5 194.2 200 175 150 125 107.3 100 76.9 66.4 75 58.4 50 25 0 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 EBIT up 9% for the year over and above the growth achieved in FY06 ¾ This growth is like for like ¾ FY06 – increase of 80% over FY
Slide 7: Core NPAT Growth
CORE NPAT GROWTH Slide No. 6 For personal use only $m Up 21% 120 110.9 100 91.9 80 60 49.8 42.7 37.7 40 31.6 20 0 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY2007 Core NPAT from continuing operations up 21% for the year ¾ FY06 – increase of 85% over FY05, largely due to Affinity acquisition
Slide 8: Core EPS Growth
CORE EPS GROWTH Slide No. 7 For personal use only 60 54.9 50 45.3 40 36.2 33.1 Cents/share 29.3 30 25.0 20 10 0 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Core EPS from continuing operations up 21% for the year ¾ Exceeded upper end of the range of guidance ¾ Average annual compound growth rat
Slide 9: Cash Flow
CASH FLOW Slide No. 8 For personal use only $m 300 250 200 150 100 50 0 6 mths to Dec' 06 6 mths to Jun' 07 FY2007 EBITDA (continuing and divested operations) Gross Operating Cash Flow Improvement in second half cash conversion: ¾ Gross operating cash flow of $175 million exceeded EBITDA of $133 m
Slide 10: Revenue Analysis
REVENUE ANALYSIS Slide No. 9 For personal use only 2.76% 16.11% 32.39% 21.84% 26.95% NSW Qld Vic WA/SA Indonesia All states showed solid EBIT growth Veteran hospitals represent 17% of total revenue Indonesian hospitals’ EBIT flat. One-off access disruption effect at Mitra Hospital caused by co
Slide 11: Operational Highlights
OPERATIONAL HIGHLIGHTS Slide No. 10 For personal use only Group EBIT increased 9% off vastly increased EBIT base following Affinity acquisition EBIT growth achieved despite dilutionary impact of veterans hospitals Strong EBIT growth across all states Group EBIT margin up to 10.1% from 9.8%
Slide 12: Operational Highlights
OPERATIONAL HIGHLIGHTS Slide No. 11 For personal use only Year ended 30 June FY2007 2006 2007 1st Half 2nd Half Hospital Margins: Margins including prosthesis EBITDA margin % 15.1% 15.4% Up 15.4% 15.3% EBIT margin % 12.4% 12.6% Up 12.7% 12.4% Margins excluding prosthesis EBITDA margin % 17.3% 17.5%
Slide 13: Operational Highlights
OPERATIONAL HIGHLIGHTS Slide No. 12 For personal use only Largely realised Affinity cost and revenue synergies identified at the time of the acquisition ¾ Expect to slightly exceed $50 million over the 3 year integration period ending FY08 Exploring further business initiatives to leverage off s
Slide 14: Brownfields Expansion
BROWNFIELDS EXPANSION Slide No. 13 For personal use only Major brownfields expansion plan accelerated and well progressed Developing large multi-service hospitals to attract increased referrals in major metropolitan areas Capacity increase aimed at satisfying unmet demand Approximately $550
Slide 15: Brownfields Expansion – Hollywood (Perth)
BROWNFIELDS EXPANSION Approved Slide No. 14 For personal use only Hollywood (Perth) Stage 1 ¾ Additional 2 theatres ¾ Additional consulting suites ¾ Additional car parking Stage 2 ¾ 120 beds are being built – a net increase of 84 new beds ¾ Additional 2 theatres ¾ Day of Surgery Admission Unit ¾ E
Slide 16: Brownfields Expansion – Greenslopes, North West
BROWNFIELDS EXPANSION Approved Slide No. 15 For personal use only Greenslopes (Brisbane) ¾ Outpatient department refurbishment ¾ Additional 26 consulting suites accommodating over 50 doctors ¾ Refurbishment of wards to private patient standard ¾ Additional car parking North West (Brisbane) Stage
Slide 17: Brownfields Expansion – The Avenue, Linacre
BROWNFIELDS EXPANSION Approved Slide No. 16 For personal use only The Avenue (Melbourne) ¾ Cardiac/endovascular catherisation laboratory with new 18 bed cardiac unit ¾ Rapid assessment unit ¾ 8 telemetry beds, 5 medical beds ¾ Ophthalmology, urology and IVF services have also been introduced Lin
Slide 18: Brownfields Expansion – John Flynn, Joondalup
BROWNFIELDS EXPANSION Approved Slide No. 17 For personal use only John Flynn (Gold Coast) ¾ Relocation and development of 18 additional rehab beds and creation of an additional 20 orthopaedic beds ¾ Work completed on 2 additional levels of consulting suites Joondalup (Perth) Public: ¾ Operated b
Slide 19: Major Projects at Advanced Feasibility Stage
BROWNFIELDS EXPANSION Slide No. 18 For personal use only Major Projects at Advanced Feasibility Stage Pindara (Gold Coast) North Shore (Sydney) Westmead (Sydney) St George (Sydney) Kareena (Sydney) Warringal (Melbourne)
Slide 20: Outlook
For personal use only Slide No. 19 OUTLOOK
Slide 21: Growth Strategy Is Delivering Returns
GROWTH STRATEGY IS DELIVERING RETURNS Slide No. 20 For personal use only Continue to grow earnings at hospital level ¾ Organic growth ¾ Strategy to manage veterans hospital transition ¾ Realise remaining Affinity synergies Brownfields expansion ¾ Leverage off demand for key hospitals operating n
Slide 22: FY 2008 Outlook
FY 2008 OUTLOOK Slide No. 21 For personal use only Ramsay, Australia’s leading private hospital operator, well positioned to leverage off strong industry fundamentals Continue to apply Ramsay’s financial discipline to brownfields developments and acquisitions to optimise shareholder value Targ
Slide 23: Questions
For personal use only Questions