Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2017 Earnings Presentation
27 slides from Ramsay Health Care's earnings presentation, Feb 23, 2017
Slide 1: Results Briefing - Half Year ended 31 December 2016
For personal use only Ramsay Health Care Limited Results Briefing Half Year ended 31 December 2016 Christopher Rex, Managing Director 23 February 2017 ramsayhealth.com
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. Acquisitions 5. Outlook 2 Results Briefing - Half Year ended 31 December 2016
Slide 3: Ramsay Health Care
Ramsay Health Care For personal use only Over Operating Admit Ranked in 50 years across over 3 million the top 5 experience 6 countries patients p.a. private hospital in operating operators in hospitals the world 3 Results Briefing - Half Year ended 31 December 2016
Slide 4: The Ramsay network today
The Ramsay network today For personal use only 15 Healthcare & 220 Hospitals treatment facilities 25,000 Hospital 1,150 Operating beds theatres 38 Emergency 4,000 Mental departments health beds 60,000 200 Pharmacies employees 4 Results Briefing - Half Year ended 31 December 2016
Slide 5: Group Operational and Financial Highlights
For personal use only Group Operational and Financial Highlights 5 Results Briefing - Half Year ended 31 December 2016
Slide 6: Group Half Year Financial Highlights
GROUP HALF YEAR FINANCIAL HIGHLIGHTS For personal use only • Core NPAT up 12.8% to $267.8 million • Core EPS up 13.0% to 128.9 cents • Group: − Revenue up 3.5% to $4.3 billion (up 7.6% in constant currency) − EBIT up 8.8% to $463.5 million • Australia/Asia: − Australia Revenue up 8.8% to $2.4 billio
Slide 7: Half Year Operational Highlights
HALF YEAR OPERATIONAL HIGHLIGHTS For personal use only • Solid half year-on-half year admissions growth in our major markets, particularly in Australia • Completed $142 million in brownfield developments with a further $90 million approved during the period • Majority of Ramsay’s Australian Hospital
Slide 8: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only 2016 2015 Six months ended 31 December Increase $m $m Revenue 4,318.7 4,173.1 3.5% EBITDAR 841.1 797.7 5.4% EBITDA 648.9 606.7 7.0% EBIT 463.5 425.9 8.8% Core NPAT attributable to members of the parent (1) 267.8 237.4 12.8% Core EPS (2) (cents per sh
Slide 9: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only 2016 2015 Six months ended 31 December Increase $m $m Core NPAT 267.8 237.4 12.8% Non-core Items net of tax (1) (11.9) (12.6) Reported Statutory Net Profit after tax attributable to 255.9 224.9 13.8% members of the Parent (1) Net non-core items
Slide 10: Core NPAT and Core EPS
CORE NPAT AND CORE EPS For personal use only June Half December Half 267.8 244.0 237.4 207.7 204.4 174.6 128.9 117.3 114.1 99 97.6 82.8 Jun'14 Jun'15 Jun'16 Dec'14 Dec'15 Dec'16 Core EPS (cents/share) Core NPAT ($m) • Core NPAT up 12.8% to $267.8 million • Core EPS up 13.0% to 128.9 cents 10 Results
Slide 11: Dividend Growth
DIVIDEND GROWTH For personal use only Full-year Dividends Interim Dividend 119.0 FY 2017 101.0 85.0 70.5 72.0 60.5 51.0 41.5 47.0 53.0 34.0 40.5 29.0 FY'13 FY'14 FY'15 FY'16 Dec'16 Interim Dividend (cents/share) Final Dividend (cents/share) • Strong consistent growth in dividends • Interim dividend
Slide 12: Leverage and Cash Management
LEVERAGE AND CASH MANAGEMENT For personal use only Consolidated Balance Sheet Leverage Ratio 6x • Strong operating cash flow 5x with high cash conversion Capio UK Acquisition rate Ramsay Santé RGdS 4x 3.7 Acquisition Acquisition of HPM • Strong balance sheet with Générale de Santé 3.3 Acquisition fi
Slide 13: Refinancing of Senior Debt Facilities
REFINANCING OF SENIOR DEBT FACILITIES For personal use only • In November 2016, the Ramsay Funding Group1 refinanced the previous Syndicated Facility Agreement, by entering into new Syndicated Facility Agreements and a Common Terms Deed Poll (CTDP), as described at Note 5 of Appendix 4D • The CTDP a
Slide 14: Segment Operational and Financial Highlights
For personal use only Segment Operational and Financial Highlights 14 Results Briefing - Half Year ended 31 December 2016
Slide 15: Financial Highlights – Australia & Asia
FINANCIAL HIGHLIGHTS – AUSTRALIA & ASIA For personal use only Six Months ended 31 December 2016 2015 Increase $m $m AUSTRALIA (1) Revenue 2,382.2 2,188.8 8.8% EBITDAR 444.3 389.5 14.1% EBITDA 422.3 370.4 14.0% EBIT 348.1 302.7 15.0% (1) The above figures include Head Office EBIT Margin (%) 14.6% 13.
Slide 16: Our Operating Environment - Australia
OUR OPERATING ENVIRONMENT - AUSTRALIA For personal use only • Continued growth in demand for health care • New Federal Health Minister • Uncertain future of various reviews • Opportunity for wider health care debate • Ramsay’s unique position: Quality of portfolio Geographical diversity Casemi
Slide 17: Financial Highlights - France
FINANCIAL HIGHLIGHTS - FRANCE For personal use only 6.1% 1,077.8 1,015.6 EBITDAR growth of 6.5% - despite 2 Election in May 2017. years of tariff reductions. 6.5% Contribution of HPM Cluster strategy 2.9% hospitals (acquired progressing with some 193.6 206.1 Dec15), overall admissions acquisition op
Slide 18: Financial Highlights – United Kingdom
FINANCIAL HIGHLIGHTS – UNITED KINGDOM For personal use only 6.8% Ramsay UK recorded strong revenue growth on 217.3 the back of growth in NHS admissions. 203.4 EBITDAR increased 2.4% on previous period. Ramsay remains leader in UK’s independent sector for NHS admissions – achieved highest month ever
Slide 19: Growth Strategy Update
For personal use only Growth Strategy Update 19 Results Briefing - Half Year ended 31 December 2016
Slide 20: Delivering on Our Growth Strategy
DELIVERING ON OUR GROWTH STRATEGY For personal use only Creating 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 acquisitions
Slide 21: Brownfield Developments
BROWNFIELD DEVELOPMENTS For personal use only In the first half FY17, Ramsay Health Care Group completed: $142M of 166 beds 6 operating 2 private developments theatres; emergency completed; A further 10 centres $90M of new operating developments theatres to open approvals in 2H 21 Results Briefing -
Slide 22: Major Brownfields Opened in 1H FY17
MAJOR BROWNFIELDS OPENED IN 1H FY17 For personal use only Peninsula Private Hospital – New Farm Clinic – 36 new beds New expanded ED Pindara Beds, Theatres, ED and major refurbishment Private Hospital New accommodation wing at Waverley Private Hospital – North Shore Private Hospital Beds & Theatres
Slide 23: Pipeline of Developments
PIPELINE OF DEVELOPMENTS For personal use only Major developments currently underway and include: • New mental health facility on the Gold Coast (The Southport Clinic) • St Andrew’s Private Hospital, Ipswich Architect Impression: Albert Road • New Northside Clinic, Sydney Clinic • Albert Road Clinic
Slide 24: Ramsay Pharmacy Strategy
RAMSAY PHARMACY STRATEGY For personal use only • Commenced retail pharmacy strategy in Australia • Plans to establish extensive network of franchised retail pharmacies throughout the country – for provision of pharmacy and associated services • Ramsay Pharmacy retail portfolio now includes 22 pharma
Slide 25: Outlook
For personal use only Outlook 25 Results Briefing - Half Year ended 31 December 2016
Slide 26: Outlook
Outlook For personal use only • Industry fundamentals remain strong - demand for healthcare continues to be driven by an ageing and growing population, clinical innovation and increasing consumer expectations • With its unique global footprint, mix of public and private payers, and strategically loc
Slide 27: Questions
For personal use only Questions 27 Results Briefing - Half Year ended 31 December 2016