Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2010 Earnings Presentation
22 slides from Ramsay Health Care's earnings presentation, Aug 26, 2010
Slide 1: Financial Results, Year ended 30 June 2010
For personal use only Briefing – 26 August 2010 Financial Results Year ended 30 June 2010 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only Full-year Highlights Financial Performance – Group, Australia, UK, France Operating Environment – Australia, UK, France Brownfield Developments Update Capital Management Operational Risk Management Successful & Sustainable Growth Strategy Outlook 2
Slide 3: Full-Year Highlights
FULL-YEAR HIGHLIGHTS For personal use only Solid rise in Group result reflects strong organic growth, brownfield developments and acquisitions Core net profit * after tax up 21.9% to $178.5 million Core EPS* up 14% to 84.5 cents Australia and Indonesia revenue up 7.2% to $2.7 billion UK reve
Slide 4: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only YEAR ENDED 30 JUNE 2010 2009 % $m $m Increase Australia/ UK France(1) Group(1) Group Indonesia Operating Revenue 2,716.7 628.0 54.6 3,399.3 3,223.8 5.4% EBITDA 369.9 90.4 8.5 468.8 411.6 13.9% EBIT 280.0 48.4 5.4 333.8 303.3 10.0% Core NPAT (2) 178.5
Slide 5: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only YEAR ENDED 30 JUNE % 2010 2009 Increase $m $m Core NPAT 178.5 146.4 21.9% Net specific items and amortisation of intangibles (net of (30.2) (39.9) tax) Reported NPAT 148.3 106.5 39.3% Net specific items and amortisation of intangibles (net of t
Slide 6: Group Core NPAT and Core EPS
GROUP CORE NPAT AND CORE EPS For personal use only Group Core NPAT and Group Core EPS ahead of guidance 6
Slide 7: FY10 Dividends (Fully Franked)
FY10 DIVIDENDS (FULLY FRANKED) For personal use only 14.5% 38.0 16.3% 12.1% Interim dividend Final dividend Final dividend up 16.3% to 25 cents Dividends for the full year up 14.5%, reflecting growth in EPS Dividend payout ratio of approximately 50% of Core EPS maintained 7
Slide 8: Group EBITDA Growth
GROUP EBITDA GROWTH For personal use only December half June half Group EBITDA up 13.9% for the year Group EBITDA margin rises to 13.8% from 12.8% 8
Slide 9: Financial Performance – Australian Hospitals
FINANCIAL PERFORMANCE – AUSTRALIAN HOSPITALS For personal use only YEAR ENDED 30 JUNE 2010 2009 % $m $m Increase Operating Revenue(1) 2,279.6 2,110.7 8.0% EBITDA(1) 417.2 372.5 12.0% EBIT(1) 340.3 304.9 11.6% EBITDA Margin (1) 18.3% 17.6% 70bps EBIT Margin(1) 14.9% 14.4% 50bps Hospitals in Austral
Slide 10: Financial Performance – UK
FINANCIAL PERFORMANCE – UK For personal use only YEAR ENDED 30 JUNE 2010 2009 % £m £m Increase Operating Revenue 350.2 318.0 10.1% EBITDAR 90.7 74.8 21.3% EBIT 26.9 20.5 31.2% EBITDAR Margin (%) 25.9% 23.5% 240 bps Revenue growth reflects increase in NHS activity which now comprises 54% of Ramsay
Slide 11: Operating Environment – Australia
OPERATING ENVIRONMENT- AUSTRALIA For personal use only Positive demographics – Ageing population – Expanding population Health insurance membership steady – June quarter PHIAC data shows 44.6% of population have hospital treatment cover Election outcome Health reform process and opportunitie
Slide 12: Operating Environment – UK
OPERATING ENVIRONMENT- UK For personal use only Positive demographics – Ageing population – Expanding population Election Outcome – Coalition committed to private sector participation in NHS – White Paper firmly supports increased role for private sector – NHS ring fenced from Government spendin
Slide 13: Operating Environment – France
OPERATING ENVIRONMENT – FRANCE For personal use only Positive demographics – Ageing population – Expanding population Health administration reforms support our investment strategy – Devolvement of decision making Economy holding up Continued political commitment to private sector involvement
Slide 14: Brownfield Developments Update
BROWNFIELD DEVELOPMENTS UPDATE For personal use only Brownfield development programme well advanced and running on time and to budget Key completed projects include: – Hollywood (Perth): Completed 1st Half FY10 – St George (Sydney): Completed 2nd Half FY10 – New Farm Clinic (Brisbane): Completed 2
Slide 15: Capital Management
CAPITAL MANAGEMENT For personal use only Effective working capital management High cash conversion rate: 102% 15
Slide 16: Capital Management
CAPITAL MANAGEMENT For personal use only Affinity Acquisition Capio UK Acquisition Ramsay Santé Acquisition Ramsay has a track record of reducing its leverage ratio after making acquisitions 16
Slide 17: Capital Management – Debt Profile
CAPITAL MANAGEMENT For personal use only Debt Profile – Committed senior bank debt facilities of $1.9 billion in place until November 2012 – Headroom of $500 million to $600 million after acquisition of Ramsay Santé and after allowing for funding of current brownfield commitments Financial Risk
Slide 18: Capital Management – CARES
CAPITAL MANAGEMENT For personal use only CARES – Ramsay will not convert or redeem CARES on 20 October 2010 – CARES dividend margin will ‘step up’ by 2% to 4.85% with effect from the dividend payable beginning 20 April 2011 – Ramsay retains the ability to redeem or convert CARES at subsequent CARE
Slide 19: Operational Risk Management
OPERATIONAL RISK MANAGEMENT For personal use only Committed to the safety and welfare of all our patients, staff, doctors, other clinicians and visitors – 30,000 staff; 2 million patients per annum – Robust risk management policies and procedures in place – Focus on clinical and facility risk, OH&
Slide 20: Successful & Sustainable Growth Strategy
SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY For personal use only Three key elements of growth Organic – Underpinned by demographics, quality portfolio of hospitals, ongoing business improvement and integration of Ramsay Santé Brownfield investment – Unmet demand driving Ramsay’s ongoing investment
Slide 21: Outlook
OUTLOOK For personal use only Clear and consistent strategy to pursue our vision to become a major global hospital operator Ageing and growing population to fuel demand for health care over the medium and long term Ramsay is well positioned to capture increased demand via capacity expansion an
Slide 22: Questions
For personal use only QUESTIONS