Slide 1: Netcare Limited Summarised Audited Group Results
Netcare Limited Summarised Audited Group Results NETCARE LIMITED The picture can't be displayed. 1
Slide 2: What we do
What we do 25 Netcare Netcare occupational health 130 Diagnostics Occupational health service contracts blood gas analysers 49 acute hospitals 13 mental health hospitals Netcare Netcare 9 903 Akeso Hospitals beds 935 12 beds day clinics 1 000 65 Netcare Employee clients primary healthcare facilities
Slide 3: Continuing recovery in FY 2022
Continuing recovery in FY 2022 01 02 03 04 05 06 07 Improving FY 2022 Group Strategic projects Rollout of Good progress in Opened new Cash conversion performance driven revenue ahead of on track with Electronic Medical broadening access flagship Netcare ratio of 113.0% by recovery in pre pandemic ta
Slide 4: Ongoing recovery in financial performance, particularly in H2 2022
Ongoing recovery in financial performance1, particularly in H2 2022 Revenue EBITDA Adjusted HEPS Dividend Net debt / EBITDA FY 2022 R 21 636m R 3 496m 83.2 cents 50.0 cents 1.4x vs FY 2021 2021: 34.0 cents 2021: 1.7x 3.0% 9.5% 23.4% H1 2022 R10 311m R1 625m 35.2 cents 20.0 cents 1.7x vs H1 2021 2.3%
Slide 5: Operational Overview
Operational Overview NETCARE LIMITED 5
Slide 6: Strong improvement in activity
Strong improvement in activity Regulationss and d restrictionss lifted d ass incidence off COVID-19 9 subsided d COVID-19 and non-COVID-19 patient days FY 2022 impacted by two mild COVID-19 200 000 H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 waves compared to more severe COVID-19 waves in FY 2021 150 00
Slide 7: Robust improvement in key activity drivers
Robust improvement in key activity drivers Total patient days Acute hospital1 patient days Mental health patient days Primary care visits x FY 2022 vs 5.4% 4.8% 11.5% 4.3% FY 2021 H2 2022 x vs 13.5% 13.2% 16.1% 5.5% H1 2022 80% 62.6 63.0 66.4% 59.3 66.4% 58.3 70% 54.1 55.7 60% 43.0 50% Acute hospita
Slide 8: Hospital and emergency services
Hospital and emergency services A stronger finish after a slow start Rm 30 Sep 2022 30 Sep 2021 % Revenue1 21 024 20 422 2.9 EBITDA1 3 333 3 069 8.6 Operating profit1 2 221 1 989 11.7 EBITDA margin (%) 15.9 15.0 Operating profit margin (%) 10.6 9.7 Revenue Margin New expertise 1.6% acute revenue per
Slide 9: Primary care
Primary care Sustained d strong g performance e in n H2 2 2022 Rm 30 Sep 2022 30 Sep 2021 % Revenue 634 595 6.6 EBITDA 163 124 31.5 Operating profit 72 36 100.0 EBITDA margin (%) 25.7 20.8 Operating profit margin (%) 11.4 6.1 Patient visits Revenue EBITDA 200 000 150 000 4.3% medical and dental Stri
Slide 10: Financial Review
Financial Review NETCARE LIMITED 10
Slide 11: Group financial overview
Group financial overview Improved d financiall performance,, solid d financiall position n and d strong g cash h conversion 01 02 Ongoing recovery in Robust operating financial performance as leverage driven by operating environment improved occupancy normalises and cost efficiencies 03 04 Strengthe
Slide 12: Ongoing recovery half-on-half
Ongoing recovery half-on-half Revenue (Rm) EBITDA (Rm) 3.7% 9.8% 10 081 10 924 10 311 11 325 1 493 1 700 1 625 1 871 H1 2021 H2 2021 H1 2022 H2 2022 H1 2021 H2 2021 H1 2022 H2 2022 Operating profit (Rm) Net debt (Rm) 12.6% (9.4)% 19.8% (8.6)% NETCARE LIMITED 1 110 1 043 1 250 6 072 5 331 5 379 4 875
Slide 13: Summarised Group statement of profit or loss
Summarised Group statement of profit or loss Rm 30 Sep 2022 30 Sep 2021 % Revenue Revenue1 21 636 21 005 3.0 Improved H2 2022 resulting in FY 2022 EBITDA1 3 496 3 193 9.5 revenue exceeding pre-pandemic revenue (FY 2019) Operating profit1 2 293 2 025 13.2 Other net financial expenses (358) (412) EBIT
Slide 14: Headline earnings per share (HEPS)
Headline earnings per share (HEPS) Improved d HEPS S and d continuation n off dividendss Cents per pe share 30 Sep 2022 30 Sep 2021 % HEPS 74.0 61.5 20.3 Adjusted HEPS 83.2 67.4 23.4 Total divi dividends 50.0 34.0 47.1 Adjusted HEPS (cents) Dividends (cents) 48.0 30.0 40.1 34.0 35.2 20.0 27.3 NETCAR
Slide 15: Summarised Group statement of financial position
Summarised Group statement of financial position Allowing g ongoing g investmentt in n facilitiess and d keyy strategicc projects Rm 30 Sep 2022 30 Sep 2021 Assets Our policy PPE1, goodwill and intangible assets 15 312 14 721 Netcare’s policy on capital structure is to maintain Right of use assets 3
Slide 16: Debt position
Debt position Comfortable e leverage e and d strong g cash h generation Rm 30 Sep 2022 30 Sep 2021 Our policy Gross debt 6 374 6 787 Netcare’s policy on capital structure is to Cash (1 499) (1 456) maintain a strong statement of financial position and to retain an investment grade Net debt 4 875 5 3
Slide 17: Debt facilities
Debt facilities Accesss to o R3.5 5 billion n cash h and d committed d facilitiess with h manageable e maturityy profile Cash h and d debtt facilitiess (Rm) Debtt maturityy profile1 (Rm) 30 September 2022 1 585 1 225 1 072 1 100 1 499 1 050 2 640 Uncommitted facilities Committed facilities Cash 300
Slide 18: Strategic Update
Strategic Update NETCARE LIMITED 18
Slide 19: Strategic update – capex light strategy
Strategic update – capex light strategy Netcare’s strategy responds … and leverages off our unique … to create sustainable decisively to the three global ecosystem of assets and services… competitive advantage healthcare megatrends… for the Group 01 Customer centricity Person centred health and care
Slide 20: Allocation of capital
Allocation of capital Netcare remains prudent in managing its capital resources 01 02 03 04 Investment strategy Deployment of capital Cash generation Capital distribution Identifying opportunities Financial discipline when Strong cash generation Dividend policy aims to linked to Group strategy alloc
Slide 21: Investment in key strategic projects in line with budget
Investment in key strategic projects in line with budget Capex Opex Up to FY 2021 FY 2022 FY 2023 Up to FY 2021 FY 2022 FY 2023 Digital platforms CareOn 146 53 91 96 87 129 EMR: Akeso, Primary care, Netcare 911, 17 12 4 4 5 Occupational health Wi-Fi infrastructure 20 58 Data analytics Azure Cloud, o
Slide 22: Digital transformation of the Netcare ecosystem progressing well
Digital transformation of the Netcare ecosystem progressing well A transformationall healthcare e projectt off unprecedented d scale e and d complexityy on n the e African n continent Netcare Netcare Netcare Netcare Netcare 911 Hospitals Primary Care Akeso Cancer Care and NRC 21 hospitals (4 828 bed
Slide 23: CareOn – redesigning our hospital healthcare ecosystem
CareOn – redesigning our hospital healthcare ecosystem Within n budgett and d good d adoption n byy healthcare e workerss acrosss ourr hospitals The digitisation of our hospitals and real-time, mobile enabled clinical records integrate all aspects of healthcare delivery involving our doctors, nurses
Slide 24: Unpacking some of the digitisation efficiencies
Unpacking some of the digitisation efficiencies Structurall changess in n Savingss in n storagee Financial e wayy we the e nurse off patientt files efficiency Managing records consumes large part Baseline spend of R12m p.a. Automated billing and elimination of nursing duties of manual and labour int
Slide 25: MyNetcare Online: Digitally engaging with our patients
MyNetcare Online: Digitally engaging with our patients Ourr enhanced d patientt portall iss tailored d to o the e userr and d theirr specificc healthcare e needs Netcare Online Patient feedback Summary appointmed™ pre-admissions surveys of care Find an appropriate medical professional Avoid paperwor
Slide 26: Africa's largest healthcare environmental sustainability programme
Africa’s largest healthcare environmental sustainability programme Substantiallyy outperforming g targetss and d ahead d off schedule Only healthcare institution in the world to win 01 Gold Medals in all four categories in 2021 Global Health Care Climate Challenge Awards, Achieved 35% reduction in e
Slide 27: Financial results of our 2013 - 2023 environmental strategy
Financial results of our 2013 - 2023 environmental strategy R585m m capex x invested d and d R1 1 062m m operationall savingss to o end d FY Y 2022,, yielding g IRR R >25% Capex Operational Rm investment to FY 2022 saving to FY 2022 Cash saving Cost avoidance Energy 572 957 253 704 Waste 1 48 8 40 W
Slide 28: NetcarePlus - providing affordable access to Netcare's ecosystem
NetcarePlus - providing affordable access to Netcare’s ecosystem Progresss in n FY2022 Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 Mar 2022 Q3 2022 Aug 2022 Sep 2022 2023 Launch of Vouchers NetcarePlus Launch of Vouchers Launch of Hollard staff Virtual care Launch of Additional NETCARE LIMITED Dent
Slide 29: Demand for NetcarePlus products is steadily increasing
Demand for NetcarePlus products is steadily increasing NetcarePluss Insurance e Sales NetcarePlus Voucherss Sales NetcarePlu 64% 116% 129% 35% 116% 158% NETCARE LIMITED Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2021 FY2022 FY2021 FY2022 The picture can't be displayed. 29
Slide 30: Netcare Diagnostics – continues to gain traction
Netcare Diagnostics – continues to gain traction Partnered with black female owned pathology practice Netcare provides equipment and infrastructure, logistics, administration, finance and operational support 130 blood gas analysers installed in Netcare ICU and High Care units to date > 250 000 tests
Slide 31: Driving continual improvement in best and safest patient care
Driving continual improvement in best and safest patient care Compassion is one of Netcare’s core values. We are committed to listening with empathy and responding with action, because at its core, compassion is empathy with action Compassionate Quality Care Care Compassion training Public reporting
Slide 32: Guidance
Guidance NETCARE LIMITED 32
Slide 33: Guidance
Guidance In n absence e off furtherr severe e COVID-19 9 waves Patient days The e Netcare e Moat 6.5% – 7.5% vs. FY 2022 Normalised revenue 9.0% – 12.0% vs. FY 2022 Strategic projects FY 2023: R275m opex | R185m capex EBITDA margin Underlying FY 2023 margins expected to strengthen in line with impro
Slide 34: Thank you
Thank you NETCARE LIMITED The picture can't be displayed. 34
Slide 35: MyWalk: Restoring dignity to children without school shoes
MyWalk: Restoring g dignityy to o children n withoutt schooll shoes A pairr of school shoes manufactured manu u from just 20 intravenous intt drip bags Partnership between Netcare and Adcock Ingram Critical Care We innovated, designed and manufacture comfortable and durable school shoes SABS approva