Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2017 Earnings Presentation
29 slides from Ramsay Health Care's earnings presentation, Aug 30, 2017
Slide 1: Results Briefing - Year ended 30 June 2017
For personal use only Ramsay Health Care Limited Results Briefing Year ended 30 June 2017 Craig McNally, Managing Director 30 August 2017 ramsayhealth.com
Slide 2: Agenda
AGENDA For personal use only 1. Overview 2. Group Operational and Financial Highlights 3. Segment Operational and Financial Highlights 4. Growth Strategy Update 5. Outlook 2 Results Results Briefing Briefing - Half - Year Year 30 ended ended June312017 December 2016
Slide 3: Ramsay Health Care
RAMSAY HEALTH CARE For personal use only Over 50 years Operating Admits almost Ranked in the experience across 3.5 million top 5 private in operating 6 countries patients p.a. hospital hospitals operators in the world 3 Results Briefing - Year ended 30 June 2017
Slide 4: Our Diversified Portfolio
OUR DIVERSIFIED PORTFOLIO For personal use only 13 Health care and 221 Hospitals treatment facilities 1,150 Operating 25,000 Hospital beds theatres 39 Emergency 4,000 Mental departments health beds 200 Pharmacies 60,000 staff 4 Results Briefing - Year ended 30 June 2017
Slide 5: Why Are We Different?
WHY ARE WE DIFFERENT? For personal use only 1. Committed to industry leading quality and safety 2. Successful execution of strategy 3. Strength & diversity of our portfolio 4. Strong financial discipline 5. Industry leading efficiency 6. Value strong doctor relationships 7. ‘The Ramsay Way’ Culture
Slide 6: Advancing Patient Outcomes
ADVANCING PATIENT OUTCOMES Achievements in FY’17: For personal use only Commenced Commenced New Patient Commenced Ramsay Hospital international rollout of Portal Launched cancer clinical Research studies of Vanderbilt in France trials network Foundation patient reported program digitalising across 1
Slide 7: Macro Industry Trends
MACRO INDUSTRY TRENDS For personal use only The role of in-patient surgical service is irreplaceable in the health care value chain. Its growth will continue to be underpinned by an ageing population, rising prevalence of chronic diseases and improving medical technologies. Ageing & Proliferation of
Slide 8: Group Operational and Financial Highlights
For personal use only Group Operational and Financial Highlights 8 Results Briefing - Year ended 30 June 2017
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only • Core NPAT up 12.7% to $542.7 million • Core EPS up 13.0% to 261.4 cents • Group: − Revenue up 0.2% to $8.7 billion (up 4.1% in constant currency) − EBIT up 5.2% to $943.4 million • Australia/Asia: − Australia Revenue up 7.0% to $4.7 billion − Australia EB
Slide 10: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only 2017 2016 Year ended 30 June Increase $m $m Revenue 8,705.4 8,684.1 * 0.2% EBITDAR 1,705.9 1,669.4 2.2% EBITDA 1,313.9 1,268.9 3.5% EBIT 943.4 897.1 5.2% Core NPAT attributable to members of the parent (1) 542.7 481.4 12.7% Core EPS (2) (cents per sh
Slide 11: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only Year Ended 30 June 2017 2016 Increase Core NPAT 542.7 481.4 12.7% Net non-core items, net of tax (1) (53.8) (31.1) Statutory Reported Net Profit after tax attributable to 488.9 450.3 8.6% members of the Parent (1) 2017 2016 Non-core items $m $m
Slide 12: Core NPAT & Core EPS
Core NPAT & Core EPS Compound Annual Growth Rate (CAGR) For personal use only Core Net Profit after Tax (NPAT) Core Earning per Share (EPS) (A$m) (cents/share) 542.7 481.4 412.1 346.2 231.4 261.4 163.9 196.6 FY'14 FY'15 FY'16 FY'17 FY'14 FY'15 FY'16 FY'17 Core NPAT CAGR 16.2% Core EPS CAGR 16.9% • C
Slide 13: Dividend Growth
DIVIDEND GROWTH Compound Annual Growth Rate (CAGR) For personal use only Total Dividend CAGR = 16.5% 134.5 119.0 101.0 85.0 81.5 72.0 60.5 51.0 47.0 53.0 34.0 40.5 Final Dividend (cents/share) Interim Dividend (cents/share) FY'14 FY'15 FY'16 FY'17 • Final dividend fully franked, up 13.2% on previous
Slide 14: Leverage and Cash Management
LEVERAGE AND CASH MANAGEMENT For personal use only Consolidated Balance Sheet Leverage Ratio • Strong operating cash flow with high 6x cash conversion rate • Strong balance sheet with financial 5x flexibility to continue to fund: Capio UK Acquisition − the pipeline of brownfield capacity Ramsay Sant
Slide 15: Segment Operational and Financial Highlights
For personal use only Segment Operational and Financial Highlights 15 Results Briefing - Year ended 30 June 2017
Slide 16: Financial Highlights – Australia & Asia
FINANCIAL HIGHLIGHTS – AUSTRALIA & ASIA For personal use only Year ended 30 June 2017 2016 Increase $m $m AUSTRALIA (1) Revenue 4,721.3 4,413.6 7.0% EBITDAR 845.0 748.0 13.0% EBITDA 799.4 708.3 12.9% EBIT 649.5 571.8 13.6% (1) The above figures include Head Office EBIT Margin (%) 13.8% 13.0% 80 bps
Slide 17: Operational Outlook - Australia
OPERATIONAL OUTLOOK - AUSTRALIA For personal use only • Operations and admissions continue to trend up as expected with an ageing and growing population • Our strong brownfield development pipeline will continue to meet this growing demand • Public system will remain under pressure • Political will
Slide 18: Financial Highlights – France
FINANCIAL HIGHLIGHTS – FRANCE For personal use only Operating Highlights 0.3% EBITDAR growth of 0.6% despite tariff reductions 2226.9 2234.4 Overall admissions growth, and strong cost management Operational Outlook Ramsay GdS is focused on developing strong relationships with new 0.6% government 445
Slide 19: Financial Highlights – United Kingdom
FINANCIAL HIGHLIGHTS – UNITED KINGDOM For personal use only Operating Highlights 4.6% 449.2 EBITDAR growth of 1.8% despite tariff reductions 429.6 Agency nurse costs were well controlled in 2H 2017 Cost restructure program carried out in 2017 delivering operational efficiencies 1.8% Operational Outl
Slide 20: Growth Strategy Update
For personal use only Growth Strategy Update 20 Results Briefing - Year ended 30 June 2017
Slide 21: Delivering on Our Growth Strategy
DELIVERING ON OUR GROWTH STRATEGY For personal use only Continuing to create shareholder value through our focused strategy ORGANIC BROWNFIELD PUBLIC/PRIVATE ACQUISITIONS & GROWTH CAPACITY EXPANSION COLLABORATIONS STRATEGIC DEVELOPMENTS Underpinned by Unmet demand driving Global focus on Exploring a
Slide 22: Developments
DEVELOPMENTS For personal use only During the period the following projects were completed or commenced: $535M 500 beds 27 operating 3 private projects theatres emergency centres 22 Results Briefing - Year ended 30 June 2017
Slide 23: New Hospitals Opened FY'17
NEW HOSPITALS OPENED FY’17 For personal use only The Border Cancer Hospital The Southport Private Hospital • Opened September 2016 in Albury Wodonga • Opened April 2017 on Gold Coast • 28 chairs; 30 overnight beds • Dedicated mental health and rehabilitation facility • Located within a state-of-the-
Slide 24: Major Brownfields Completed
MAJOR BROWNFIELDS COMPLETED For personal use only Peninsula Private Hospital New Farm Clinic – 39 new beds New expanded ED – 71 Beds, Theatres, ED and major refurbishment Pindara Private Hospital New accommodation wing at Waverley Private Hospital 3 Theatres – The Avenue North Shore Private Hospital
Slide 25: Development Pipeline
The New Northside St Leonards Clinic (artist impression) DEVELOPMENT PIPELINE For personal use only Projects include: • The new Northside Clinic at St Leonards (gross 112; net 24 beds) • Albert Road Clinic (48 beds) • Lake Macquarie (30 beds) • Additional theatres/catheter laboratories at North Shor
Slide 26: For personal use only
For personal use only • Ramsay pharmacy franchise network is on track to total 55 retail pharmacies once current contracts complete • Concentrating on sites close to hospitals so we can extend both medication and other integrated care services to our patients beyond the hospital walls • Includes 4 x
Slide 27: Outlook
For personal use only Outlook 27 Results Briefing - Year ended 30 June 2017
Slide 28: Outlook
OUTLOOK For personal use only Attractive demographic fundamentals combined with geographic, casemix and reimbursement diversification will continue to drive growth Strong growth in our Australian business is expected to continue, while we anticipate ongoing challenging environment in Europe in t
Slide 29: Questions?
For personal use only Questions? ramsayhealth.com