Netcare Limited · JSE:NTC
Netcare — Debt Investor Presentation (August 2022)
25 slides from Netcare's debt investor presentation, August 2022
Slide 1: Debt Investor Roadshow
Netcare Limited Debt Investor Roadshow August 2022
Slide 2: Netcare Limited Disclaimer
Netcare Limited Disclaimer Certain statements in this document constitute 'forward-looking statements'. Forward-looking statements may be identified by words such as 'believe', 'anticipate', 'expect', 'plan', 'estimate', 'intend', 'project', 'target', 'predict' and 'hope'. By their nature, forward-l
Slide 3: Netcare's Board members
Netcare’s Board members Non-executive directors * Executive directors NETCARE LIMITED * Thevendrie Brewer - resigned effective 31 December 2022 3
Slide 4: Our Strategy
01 Our Strategy NETCARE LIMITED 4
Slide 5: Our Strategy
Our Strategy Netcare’s strategy responds … and leverages off our unique ecosystem of … to create sustainable competitive decisively to the three global assets and services… advantage for the Group. healthcare megatrends… Occupational Akeso health Customer 01 centricity Hospitals Person centred healt
Slide 6: Building the Netcare moat – a fundamental redesign of our healthcare delivery system
Building the Netcare moat – a fundamental redesign of our healthcare delivery system 1 2 3 We are undergoing a radical How will we This will allow us to create To achieve this, we have redesign of our healthcare a sustainable demonstrated the measure success? delivery model – in order to competitive
Slide 7: The Netcare moat
The Netcare moat Person centred health and care • Empowering patients to participate in their health • A shift towards wellbeing and wellness and away from curative, episodic care • Ensuring customer centricity is at the centre of all we do, driving greater convenience and integrated, personalised e
Slide 8: Investment in key strategic projects
Investment in key strategic projects Capex Opex Up to FY 2021 H1 2022 H2 2022 FY 2023 Up to FY 2021 H1 2022 H2 2022 FY 2023 Digital platforms CareOn 146 24 88 85 96 39 72 132 EMR: Akeso, Primary care, Netcare 911, Occupational 17 1 9 2 8 2 Health Wi-Fi infrastructure 20 36 21 Data analytics Azure Cl
Slide 9: Investment in environmental sustainability
Investment in environmental sustainability CAPEX OPEX Potential FY 2013 FY 2023 FY 2013 FY 2023 benefits - FY 2020 FY 2021 FY 2022 - FY 2030 - FY 2020 FY 2021 FY 2022 - FY 2030 Environmental sustainability Energy, water and waste 527 23 47 360 59 17 22 194 IRR: >20% 01 02 03 04 05 Achieved a 28% Ach
Slide 10: Leading environmental sustainability in healthcare
Leading environmental sustainability in healthcare Only healthcare First healthcare Awarded the Commercial Environmental institution in the world to organisation in Africa to Corporate Company of performance now win Gold Medals in all join UN’s Race to Zero the Year Award in South linked to
Slide 11: Interim Results Recap
02 Interim Results Recap NETCARE LIMITED 11
Slide 12: Recovering demand driving improved performance
Recovering demand driving improved performance Steady improvement in financial performance for H1 2022 1 against H1 2021 4th COVID-19 wave saw decoupling of rate of community spread 2 from hospital admissions Strong demand for private healthcare services since 4th COVID- 3 19 wave subsided Rollout o
Slide 13: Strong recovery in financial performance
Strong recovery in financial performance1 Cash & EBITDA Adjusted HEPS Net debt / Interim Revenue committed EBITDA dividend facilities R10 311m R1 625m 35.2 cents 1.7x R3.4bn 20.0 cents ▲ 2.3% ▲ 8.8% ▲ 28.9% 2021: 2.0x 2021: 6.6bn 2021: Nil NETCARE LIMITED 1 Normalised to exclude impact of exceptiona
Slide 14: Group financial overview
Group financial overview Improving financial performance, strong financial position and cash generation Ongoing recovery in financial performance 1 towards pre-COVID-19 levels Operating leverage from increasing activity 2 and cost efficiencies Strong statement of financial position allows for contin
Slide 15: Outlook: driven by COVID-19 and external factors
Outlook: driven by COVID-19 and external factors Evolution of COVID-19 Long COVID External factors Sub-variants of Omicron New variants Emergence of • Stability of national (serial mutation) (parallel mutation) chronic conditions electricity grid • Milder • Potentially more • Emergence of both sympt
Slide 16: Guidance
Guidance In absence of further severe COVID-19 waves and / or abnormal inflation Patient days Revenue Strategic EBITDA Capex projects margin ▲ 2.0% – 3.0% ▲ 3.0% – 4.0% FY 2022: Underlying FY 2022: vs. FY 2021 vs. FY 2021 R 273m opex H1 2022 margins R 1.4bn R 227m capex (excluding strategic costs) e
Slide 17: Debt Considerations
03 Debt Considerations NETCARE LIMITED 17
Slide 18: Allocation of Capital
Allocation of Capital Netcare remains prudent in managing its treasury functions NETCARE LIMITED 18
Slide 19: Debt position
Debt position Comfortable leverage and strong cash generation Rm 31 Mar 2022 30 Sep 2021 31 Mar 2021 Our policy Netcare’s policy on capital structure is to Gross debt 6 769 6 787 8 485 maintain a strong statement of financial position and to retain an investment grade credit rating while reducing th
Slide 20: Debt facilities
Debt facilities Access to R 3.4 billion cash and committed facilities on 31 March 2022 Debt Facilities (Rm) Cash and Unutilised debt facilities (Rm) 31 March 2022 31 March 2022 1 050 3 390 2 243 6 769 1 390 950 NETCARE LIMITED Available cash and committed facilities Overnight loans (GBF) Cash Utilis
Slide 21: Debt Maturity Profile
Debt Maturity Profile 1 Debt maturity profile (Rm) 1 585 1 072 1 050 1 000 1 022 500 NETCARE LIMITED H2 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 1 Promissory notes, commercial paper, term bonds and bank loans as at 30 June 2022 21
Slide 22: DMTN Offering
04 DMTN Offering NETCARE LIMITED 22
Slide 23: Indicative term sheet and timing
Indicative term sheet and timing Issuer Clindeb Investments Limited Guarantor Netcare Limited Issuer Rating GCR Ratings: AA- (ZA) / A1+ (ZA) affirmed on 3 February 2022 DMTN Programme Limit R7.5 billion Volume Sought [R500m - R750m] Instrument Senior Unsecured Bond Auction Date and Time [02 Septembe
Slide 24: Contact details
Contact details CLINDEB Investments Limited Email Address Keith Gibson Keith.Gibson@netcare.co.za (Group CFO) Johan Portwig Johan.Portwig@netcare.co.za (Manager: Treasury, Corporate Finance and Special Projects) Marcelle Jankelow (General Manager Investor Relations) Marcelle.Jankelow@netcare.co.za R
Slide 25: Thank you
hank you etcare Limited Providing YOU with the best and safest care.