Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2001 Earnings Presentation
22 slides from Ramsay Health Care's earnings presentation, February 2001
Slide 1: Interim Results Half Year to 31 December 2000
RAMSAY HEALTH CARE LIMITED Interim Results Half Year to 31 December 2000
Slide 2: Chairman's Overview
Chairman’s Overview Net profit after tax strengthens 141% to $6.5 million § Group operating revenue improves 15% § EBIT up 20% § Stronger result achieved despite $2.2 million loss from Flinders Private Hospital up to sale § Interim dividend increased to 3.5 cents, unfranked RAMSAY HEALTH CARE LIMITE
Slide 3: Chairman's Overview
Chairman’s Overview Stronger profitability level expected to be at least maintained in second half as: § Negative effects of Flinders Private are removed § Continued strong management of operations, reimbursement rate increases, more than offsetting seasonality of second half § Mildura Base Hospital
Slide 4: Financial Highlights
Financial Highlights Overview - Group § Group NPAT up 141% § Group revenue up 15% § Group EBIT up 20% § EBIT margin up to 9.9% from 9.5% RAMSAY HEALTH CARE LIMITED
Slide 5: Financial Highlights: Half Year Ended December 2000
Financial Highlights Half Year Ended 31 December 2000 $M 1999 2000 % Operating Revenue 161,961 186,530 15% EBITDA 25,649 28,432 11% EBIT 15,401 18,425 20% Profit before tax and abnormals 4,802 8,871 85% NPAT before abnormals 4,085 6,518 60% Abnormal loss (net of tax) (1,384) - - NPAT 2,701 6,518 141
Slide 6: Financial Performance: Continuing Operations
Financial Performance Overview - Continuing Operations (ex Flinders) § NPAT up 55% to $8.7 million § Revenue up 14% § EBIT up 10% § EBIT margin (ex Mildura) up to 11.8% RAMSAY HEALTH CARE LIMITED
Slide 7: Financial Performance: Half Year Ended December 2000
Financial Performance Half Year Ended 31 December 2000 $M Continuing Discontinued Total Operations Operations (Flinders) 1999 2000 1999 2000 1999 2000 Operating Revenue 151,804 173,642 10,157 12,888 161,961 186,530 EBITDA 25,829 27,745 (180) 687 25,649 28,432 EBIT 17,412 19,239 (2,011) (814) 15,401
Slide 8: Group Key Performance Indicators
Group Key Performance Indicators Six Months Ended 30/06/99 31/12/99 30/06/00 31/12/00 Occupancy % 73.0 75.3 76.0 77.3 EBIT Margin % 8.7 9.5 9.3 9.9 Revenue PPD $ 538 575 585 601 EPS ¢ 1.8 2.5 3.6 6.0 Net Gearing % 112 113 134 88 ROIC (EBIT / Funds Employed) % 6.0 6.2 7.9 10.5 ROE (NPAT / Shareholder
Slide 9: Group Key Performance Indicators: Occupancy
Group Key Performance Indicators Occupancy (%) % 78 77 76 75 74 73 72 71 70 Jun-99 Dec-99 Jun-00 Dec-00 Six Months Ended RAMSAY HEALTH CARE LIMITED
Slide 10: Group Key Performance Indicators: EBIT Margin
Group Key Performance Indicators EBIT Margin (%) % 11 10 9 8 7 Jun-99 Dec-99 Jun-00 Dec-00 Six Months Ended RAMSAY HEALTH CARE LIMITED
Slide 11: Group Key Performance Indicators: Net Gearing
Group Key Performance Indicators Net Gearing (%) % 140 130 120 110 100 90 80 Jun-99 Dec-99 Jun-00 Dec-00 RAMSAY HEALTH CARE LIMITED
Slide 12: Group Key Performance Indicators: Revenue Per Patient Day
Group Key Performance Indicators Revenue Per Patient Day ($) $ 625 600 575 550 525 500 475 450 Jun-99 Dec-99 Jun-00 Dec-00 Six Months Ended RAMSAY HEALTH CARE LIMITED
Slide 13: Group Key Performance Indicators: Earnings Per Share
Group Key Performance Indicators Earnings Per Share (cents) ¢ 7 6 5 4 3 2 1 0 Jun-99 Dec-99 Jun-00 Dec-00 Six Months Ended RAMSAY HEALTH CARE LIMITED
Slide 14: Group Key Performance Indicators: Return on Investment
Group Key Performance Indicators Return on Investment (%) % 12 10 8 6 4 2 0 Jun-99 Dec-99 Jun-00 Dec-00 RAMSAY HEALTH CARE LIMITED
Slide 15: Group Key Performance Indicators: Return on Equity
Group Key Performance Indicators Return on Equity (%) % 7 6 5 4 3 2 1 0 Jun-99 Dec-99 Jun-00 Dec-00 RAMSAY HEALTH CARE LIMITED
Slide 16: Sale of Flinders Private Hospital
Sale of Flinders Private Hospital Impact of Sale § Improve Group profitability going forward § Improved gearing § Frees up management and financial resources § Demonstrates Ramsay’s commitment to taking a leading position in every market in which it operates RAMSAY HEALTH CARE LIMITED
Slide 17: Continuing Operations
Continuing Operations Veteran, Medical / Surgical and Psychiatric Hospitals § Strong management underpins sustainable profit growth § North Shore results continuing to improve § Improved productivity § EBIT margin increased to 11.8% § Mildura running to plan EBIT Margin Revenue EBIT 14% 10% (ex Mild
Slide 18: Ramsay's Strategic Position
Ramsay’s Strategic Position § Proven good management – Cost controls, management efficiencies – Revenue enhancing activities – Stakeholder relationships § Strength of hospital portfolio – Significant players in niche markets – Strong demand from health fund members § Revenue Profile RAMSAY HEALTH CA
Slide 19: Sustainable Environment Change
Sustainable Environment Change § Major government initiatives have changed the environment – 30% rebate – Lifetime cover – Industry structural changes § Impact – + 50% increase in health fund membership – Approximately 3 million new members – More discerning users § Shortage of high acute, quality b
Slide 20: Strategy for Future Growth
Strategy for Future Growth § To achieve competitive advantage in every market we operate § Internal growth – Additional capacity – New services – Higher returns § Pursue investments in other hospitals § Explore growth close to Ramsay core competencies RAMSAY HEALTH CARE LIMITED
Slide 21: Ramsay Health Care Outlook
Ramsay Health Care Outlook § Sustainable improvement in environment expected to contribute to further strengthening in Ramsay business § Second half profit expected to be at least level with the first half (ex Flinders) RAMSAY HEALTH CARE LIMITED
Slide 22: Interim Results Half Year to December 2000
RAMSAY HEALTH CARE LIMITED Interim Results Half Year to 31 December 2000