Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2015 Earnings Presentation
29 slides from Ramsay Health Care's earnings presentation, Aug 27, 2015
Slide 1: Ramsay Health Care Results Briefing, Year ended 30 June 2015
For personal use only Ramsay Health Care Limited Results Briefing Year ended 30 June 2015 Christopher Rex, Managing Director 27 August 2015
Slide 2: Agenda
AGENDA For personal use only 1. Group Operational and Financial Highlights 2. Segment Operational and Financial Highlights 3. Growth Strategy Update 4. Outlook 2
Slide 3: Ramsay Health Care
RAMSAY HEALTH CARE For personal use only • 212 hospitals across 5 countries • 25,000 beds and places • Employs circa 60,000 people • Admits circa 3 million patients per annum • Ranked in the top 5 private hospital operators in the world 3
Slide 4: Ramsay Health Care: Culture, Growth Strategy, Financial Discipline
RAMSAY HEALTH CARE For personal use only Strong Culture • The Ramsay Way • Over 50 years of uninterrupted focus on clinical quality and safety • Long term stable and experienced Board and management Strong and Sustainable Growth Strategy • Focus on hospitals • Developed an exportable operational mod
Slide 5: Group Operational and Financial Highlights
For personal use only Group Operational and Financial Highlights
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only • Core NPAT up 19.0% to $412.1 million • Core EPS up 20.0% to 196.6 cents • Group: − Revenue up 49.8% to $7.4 billion − Group EBIT up 37.4% to $803.9 million • Australia/Asia: − Revenue up 8.2% to $4.1 billion − EBIT up 8.6% to $521.4 million • United Kingd
Slide 7: FY2015 Operational Highlights
FY2015 OPERATIONAL HIGHLIGHTS • Strong growth across global portfolio For personal use only • Became the leading hospital operator in France after finalising the acquisition of Générale de Santé (completed Oct 2014). Merger with Ramsay Santé completed 1 July 2015 • In the process of acquiring a furt
Slide 8: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only YEAR ENDED 30 JUNE 2015 2014 Increase $m $m Revenue 7,355.5 4,909.3 49.8% EBITDAR 1,412.0 893.5 58.0% EBITDA 1,106.3 751.5 47.2% EBIT 803.9 584.9 37.4% Core NPAT (1) 412.1 346.2 19.0% Core EPS (2) (cents per share) 196.6¢ 163.9¢ 20.0% Final Dividend
Slide 9: Reconciliation to Statutory Reported Profit
RECONCILIATION TO STATUTORY REPORTED PROFIT For personal use only 2015 2014 YEAR ENDED 30 JUNE Increase $m $m Core NPAT 412.1 346.2 19.0% Non-core Items, net of tax (1) (26.6) (42.4) Statutory Reported Net Profit after tax attributable to 385.5 303.8 26.9% members of the Parent (1) Net non-core item
Slide 10: Core NPAT & Core EPS
CORE NPAT & CORE EPS Compound Annual Growth Rate (CAGR) Core NPAT For personal use only CAGR = 17.7% 412.1 346.2 290.9 252.6 Core EPS CAGR = 19.2% 196.6 163.9 135.9 116.1 FY2012 FY2013 FY2014 FY2015 Core EPS (cents/share) Core NPAT ($m) • Core NPAT and Core EPS in line with upgraded (Feb’15) guidanc
Slide 11: Dividend Growth
DIVIDEND GROWTH Compound Annual Growth Rate (CAGR) Total Dividend For personal use only 101.0 CAGR = 19.0% 85.0 70.5 60.0 60.5 51.0 41.5 34.5 Final Dividend (cents/share) 40.5 Interim Dividend (cents/share) 29.0 34.0 25.5 FY2012 FY2013 FY2014 FY2015 • Final dividend fully franked, up 18.6% on previo
Slide 12: Core EPS and Dividend Growth
CORE EPS AND DIVIDEND GROWTH Over the 17 years from listing to 30 June 2015 Core Earnings per Share (EPS) For personal use only ¢/share CAGR 16.8% 240.0 200.0 160.0 120.0 Core EPS 80.0 CAGR 40.0 - FY'98 FY'99 FY'00 FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 F
Slide 13: Leverage and Cash Management
LEVERAGE AND CASH MANAGEMENT Consolidated Balance Sheet For personal use only Leverage Ratio* 6x Affinity Acquisition 5.1 5x Capio UK Acquisition • Strong operating cash flow with Ramsay Santé high cash conversion rate Acquisition 4x 3.7 • Strong balance sheet with Générale de Santé financial flexib
Slide 14: Segment Operational and Financial Highlights
For personal use only Segment Operational and Financial Highlights
Slide 15: Our Operating Environment
OUR OPERATING ENVIRONMENT For personal use only Australia Asia UK France • Continuing rising • Increasing consumer • Continuing strong NHS • Tariff challenges demand for health wealth, and government growth • Further consolidation care programmes to expand • Favourable political likely to take place
Slide 16: Financial Performance: Australia and Asia
FINANCIAL PERFORMANCE Australia and Asia For personal use only 8.2% 4,055.5 3,749.4 9.0% 9.3% 628.7 595.8 685.4 651.5 FY 2014 FY 2015 Revenue ($m) EBITDAR ($m) EBITDA ($m) Note: The above figures include Head Office Australian Hospital Operations • Solid organic growth on the back of strong admissio
Slide 17: Financial Performance: United Kingdom
FINANCIAL PERFORMANCE United Kingdom For personal use only 8.0% 413.2 382.7 8.1% 11.2% 98.5 106.5 53.3 59.3 FY 2014 FY 2015 Revenue (£m) EBITDAR (£m) EBITDA (£m) • Ramsay’s UK business continues to perform well with EBIT rising 14.6% to £40.5 million • Maintenance of 25.8% EBITDAR margin • NHS admis
Slide 18: Financial Performance: France
FINANCIAL PERFORMANCE France (Ramsay Santé and Générale de Santé Combined) For personal use only 440.8% 1,749.5 493.3% 467.7% 323.5 61.6 42.1 365.5 239.0 FY 2014 FY 2015 Revenue (€m) EBITDAR (€m) EBITDA (€m) • Both Ramsay Santé and Générale de Santé performed at or above expectations during the peri
Slide 19: Growth Strategy Update
For personal use only Growth Strategy Update
Slide 20: Brownfield Developments
BROWNFIELD DEVELOPMENTS For personal use only Demographics continue to drive the need for capacity expansion: • 33 projects delivering a total of 1041 beds (net 754) and 41 theatres, will be completed during the FY15 and FY16 period • Focused on patient accommodation; facility and medical equipment
Slide 21: Brownfield Developments (Continued)
BROWNFIELD DEVELOPMENTS (Continued) For personal use only • In FY 2015, Ramsay completed $190m worth of expansions at existing facilities including: • Warringal Private (64 beds; 5 theatres; day Warringal Private surgery unit) – $58.2m • Pindara Private (113 beds; 3 theatres) – $53.3m • Kareena Priv
Slide 22: Brownfield Developments (Continued)
BROWNFIELD DEVELOPMENTS (Continued) • Other projects completed during FY 2015: For personal use only • John Flynn (Day Surgery) – $2.8m • Peninsula Private ( Theatre, Beds) – $4.8m • Lake Macquarie Private (Theatre, CCU) – $7.6m • Kingsway Day Surgery (new hospital in Miranda) – $6.8m • Hillcrest Pr
Slide 23: Brownfield Developments (Continued)
BROWNFIELD DEVELOPMENTS (Continued) For personal use only Main projects due to complete in FY16: • Wollongong – 151 beds; 8 theatres • Hollywood – 90 beds; 6 theatres • Peninsula – 71 beds; 1 theatre • Cairns – 56 beds • New Farm Clinic – 56 beds Cairns Private • North Shore – 45 beds; 1 theatre • S
Slide 24: Acquisitions - France
ACQUISITIONS - FRANCE For personal use only • Merger of Ramsay Santé and Générale de Santé (GdS) finalised on 1 July 2015, integration now underway • The merger brings Ramsay’s total portfolio to 115 facilities (101 hospitals) and employing over 20,000 staff • Ramsay Générale de Santé - leading priv
Slide 25: Acquisitions - France
ACQUISITIONS - FRANCE For personal use only • In the process of acquiring nine hospitals in Lille owned by HPM Group • Together with existing facilities, will create market leadership in the Lille region • Acquisition subject to regulatory approvals and completion expected later Red – HPM facilities
Slide 26: Acquisitions - China
ACQUISITIONS - CHINA • Through its JV with Sime Darby, Ramsay For personal use only has recently announced it has signed an agreement, with Chinese healthcare company Jinxin, to jointly operate five hospitals in the city of Chengdu, China. • The JV will include five hospitals with 2300 beds in total
Slide 27: Outlook
For personal use only Outlook
Slide 28: Outlook
OUTLOOK For personal use only • We will continue our track record of success in international expansion through our exportable operational model - now a market leader in two developed market places: Australia and France • Utilising our global experience in acquiring and integrating hospitals, we wil
Slide 29: Questions
For personal use only Questions