Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2015 Earnings Presentation
27 slides from Ramsay Health Care's earnings presentation, Feb 26, 2015
Slide 1: Results Briefing Half Year ended 31 December 2014
For personal use only Results Briefing Half Year ended 31 December 2014 Christopher Rex Managing Director
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 over 50,000 people Admits around 3 million patients per annum Note: After completion of the Générale de Santé acquisition in October 2014 3
Slide 4: Group Operational and Financial Highlights
Group Operational and Financial Highlights For personal use only
Slide 5: Half-Year Financial Highlights
HALF-YEAR FINANCIAL HIGHLIGHTS For personal use only • Core NPAT up 19.1% to $204.4 million • Core EPS up 20.2% to 97.6 cents • Group: − Revenue up 41.6% to $3.3 billion − EBIT up 32.2% to $377.8 million • Australia/Asia: − Revenue up 8.8% to $2.0 billion − EBIT up 12.6% to $282.8 million • United K
Slide 6: Half Year Operational Highlights
HALF YEAR OPERATIONAL HIGHLIGHTS • Strong organic growth across global portfolio For personal use only • Acquired a controlling interest in the largest private hospital group in France, Générale de Santé (completed October 2014) • Completed $175 million in brownfield capacity expansions at Australia
Slide 7: Group Financial Performance
GROUP FINANCIAL PERFORMANCE 2014 2013 For personal use only Six Months Ended 31 December $m $m Increase Revenue 3,341.2 2,360.1 41.6% EBITDAR 639.5 429.3 49.0% EBITDA 511.2 364.6 40.2% EBIT 377.8 285.9 32.2% Core NPAT attributable to members of the parent (1) 204.4 171.6 19.1% Core EPS (2) (cents pe
Slide 8: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only 2014 2013 Six Months Ended 31 December $m $m Increase Core NPAT 204.4 171.6 19.1% Non-core Items, net of tax (1) (13.0) (13.8) Reported Net Profit after tax attributable to members of 191.4 157.8 21.3% the Parent Note: (1) Non-core items, net o
Slide 9: Group Core NPAT and Core EPS
GROUP-CORE NPAT and CORE EPS For personal use only June Half December Half $174.6m $204.4m $171.6m $142.7m $148.2m $120.7m 82.8¢ 97.6¢ 81.2¢ 66.9¢ 69.1¢ 55.3¢ Jun'12 Jun'13 Jun'14 Dec'12 Dec'13 Dec'14 Core EPS (cents/share) Core NPAT ($m) • Core NPAT up 19.1% to $204.4 million • Core EPS up 20.2% to
Slide 10: Dividend Growth
DIVIDEND GROWTH For personal use only Full-year Dividends Interim Dividend FY 2015 85.0 70.5 51.0 60.0 41.5 34.5 40.5 34.0 29.0 25.5 FY'12 FY'13 FY'14 Dec'14 Interim Dividend (cents/share) Final Dividend (cents/share) • Interim dividend fully franked, up 19.1% on previous corresponding interim divid
Slide 11: Leverage and Cash Management
LEVERAGE and CASH MANAGEMENT Consolidated Balance Sheet For personal use only Leverage Ratio* 6x Affinity Acquisition 5.1 5x • Strong operating cash flow with Capio UK Acquisition high cash conversion rate Ramsay Santé Acquisition • Strong balance sheet with financial 4x 3.7 flexibility to continue
Slide 12: Segment Operational and Financial Highlights
Nth Hi “ey Segment Operational and Financial Highlights For personal use only
Slide 13: Financial Highlights – Australia & Asia
FINANCIAL HIGHLIGHTS – AUSTRALIA(1) & ASIA 8.8% For personal use only 2,037.4 1,872.0 11.9% 12.4% 324.0 307.6 362.5 345.6 6 months ended 31 Dec'13 6 months ended 31 Dec'14 Revenue ($m) EBITDAR ($m) EBITDA ($m) • EBITDA growth of 12.4% for the half year Note: (1) The above figures include Head Office
Slide 14: Operational Highlights – Australia & Asia
OPERATIONAL HIGHLIGHTS – AUSTRALIA & ASIA For personal use only • Solid organic growth on the back of strong admissions growth • Australian hospitals operating margin (EBITDA) increased from 18.8% to 19.3% • Quality and strategically well placed portfolio continues to produce good brownfield opportu
Slide 15: Operational/Financial Highlights – United Kingdom
OPERATIONAL/FINANCIAL HIGHLIGHTS – UNITED KINGDOM 9.0% For personal use only 198.1 181.7 6.4% 45.6 48.5 8.3% 23.0 24.9 6 months ended 31 Dec'13 6 months ended 31 Dec'14 Revenue (£m) EBITDAR (£m) EBITDA (£m) • Ramsay’s UK business continues to perform well with EBITDAR rising 6.4% to £48.5 million •
Slide 16: Operational/Financial Highlights – France
OPERATIONAL/FINANCIAL HIGHLIGHTS – FRANCE (Ramsay Santé and GdS combined) For personal use only 2014(1) 2013 Six Months Ended 31 December Increase €m €m Revenue 646.1 120.3 437.1% EBITDAR 129.4 18.6 596.0% EBITDA 82.6 12.1 582.0% Margins: EBITDAR 20.0% 15.5% +457 bps EBITDA 12.8% 10.1% +272 bps • Ra
Slide 17: Ramsay Santé
RAMSAY SANTÉ 64.3% For personal use only 197.6 120.3 115.1% 128.1% 40.0 27.6 18.6 12.1 6 months ended 31 Dec'13 6 months ended 31 Dec'14 Revenue (€m) EBITDAR (€m) EBITDA (€m) • Ramsay Santé performed well with EBITDA increasing by 128.1% to €27.6 million • Continued improvement of existing operation
Slide 18: Générale de Santé
GÉNÉRALE DE SANTÉ (acquired 1 October 2014) For personal use only 448.5 89.4 55.1 1 Oct'14 to 31 Dec'14 Revenue (€m) EBITDAR (€m) EBITDA (€m) • Générale de Santé performed as anticipated for the three months, confirming due diligence expectations 18
Slide 19: Growth Strategy Update
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Slide 20: Our Formula for Success
OUR FORMULA FOR SUCCESS 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 operationa
Slide 21: Brownfield Developments
BROWNFIELD DEVELOPMENTS For personal use only • Positive demographics and ageing population driving continued investment in capacity expansion • In the half year to Dec 14, Ramsay Warringal Private completed $175m worth of expansions at existing facilities including: • Warringal Private (64 beds; 5
Slide 22: Brownfield Developments (Continued)
BROWNFIELD DEVELOPMENTS (Continued) For personal use only • Other projects completed during the half year ended 31 December 2014: • Lake Macquarie Private (Theatre, CCU) – $7.6m • Kingsway Day Surgery (new hospital in Miranda) – $6.8m • Hillcrest Private (expanded mental health unit) – $5.2m • Mitch
Slide 23: Acquisitions
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Slide 24: Acquisitions
ACQUISITIONS For personal use only France - Générale de Santé • In October 2014, Ramsay finalised the acquisition of a controlling interest in Générale de Santé (GdS) and its 75 facilities (61 hospitals) • The acquisition brings Ramsay’s total portfolio in France to 115 facilities (101 hospitals) Ch
Slide 25: Outlook
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Slide 26: Outlook
OUTLOOK • Demographics will continue to drive capacity expansion opportunities For personal use only from which we expect ongoing benefits to flow • We will maintain our focus on improving performance at existing hospitals • Integration of Générale de Santé and growing this business will be a major
Slide 27: For personal use only
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