Life Healthcare Group Holdings Limited · JSE:LHC
Life Healthcare — Corporate Update (September 2015)
11 slides from Life Healthcare's corporate update, September 2015
Slide 1: Pre-close call: September 2015
Pre-close call: September 2015 www.lifehealthcare.co.za
Slide 2: Outlook as per the interim results: SA
Outlook as per the interim results SA SA: • Addition of 178 beds in H2 • ±450 beds in the next 18 months • PPD growth of between 3-4% • Stable margins • Continued focus on improving clinical quality outcomes • Continue to participate in the CC healthcare inquiry 2
Slide 3: Outlook as per interim results: International
Outlook as per interim results International India: • Well positioned to take advantage of the rapidly developing private healthcare sector • Leveraging off the existing base and growing by: − Brownfield expansions − Greenfield projects − Acquisitions • Next 3-4 years: − Strong visibility to ±3 000
Slide 4: SA Introduction: More difficult economic environment in SA
SA Introduction More difficult economic environment in SA Seen a slowdown in growth of new lives in the private healthcare market: • 2014 CMS figures show growth of 0.4% • Expect 2015 growth to be similar Depreciation of the Rand has a negative impact on imported costs Despite this environment a sol
Slide 5: SA – H2 Business Update: Acute business
SA – H2 Business Update SA: Acute business • Bed growth in H2: − Brownfield: 69 beds − Greenfield: 94 beds › The Life Hilton hospital beds only opened in September − Total H2: 163 beds • Total 2015: 249 beds • Expect PPD growth of between 3 - 3.5%. Seen a slight slowdown over the last 2 months • Occ
Slide 6: SA – H2 Business Update
SA – H2 Business Update SA: • Continued growth in renal dialysis – 38 additional stations • Healthcare Services experienced a difficult half: − Life Esidimeni revenues will be relatively flat in H2 − Life Occupational Health: › Closely aligned to the economy, particularly large manufacturing and min
Slide 7: India – H2 Business Update
India – H2 Business Update MHC Growth: • PCH Acquisition: − Acquired 76% of Pushpanjali Crosslay Hospital (PCH) for Rs 287 Cr − Acquisition effective in mid-July − A 340 bed facility with capacity to grow to 540 beds − Situated 4km from the MHC Patpaganj hospital (PPG) − Patpaganj (PPG) has high occ
Slide 8: Poland – H2 Business Update
Poland – H2 Business Update Poland: • Business has focused on: − completing integration of acquired businesses to drive efficiencies − Positioning of the business to maximise our growth in new national health contracts in 2016 − Continued M & A activity: › Acquired 49.9% of the Scanmed Carint cardio
Slide 9: Finance overview: Margins and cash flow
Finance overview Margins: • SA: − Ebitda Margins have remained stable in H2 despite increased cost pressures from the Rand depreciation • India: − Ebitda margins are behind where we would like them to be − Additional costs added due to the PCH acquisition − Revenue mix has had an impact • Poland: −
Slide 10: Finance overview: Balance Sheet
Finance overview Balance Sheet: • At interims our net debt was R5.765bn – net debt to normalised ebitda of 1.52 x • Our strategy going forward: − The funding of growth in India will sit on the MHC balance sheet with no additional debt on the SA balance sheet − Overtime we would like to re-structure
Slide 11: Conclusion
Conclusion Annual Results presentation: • We will be doing a webcast of our annual results: − On Friday 13 November − 10am CAT • We will be doing an annual results road show: − Cape Town: 16 November − JHB: 17 November − London: 18-20 November (including attending the Investec CEO Conference) 11
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