Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2012 Earnings Presentation
23 slides from Ramsay Health Care's earnings presentation, Feb 23, 2012
Slide 1: Financial Results Half-year ended 31 December 2011
For personal use only Briefing – 23 February 2012 Financial Results Half-year ended 31 December 2011 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only Ramsay Health Care - Overview Half-year Financial Highlights Group Operational Highlights Group Financial Performance Operational/Financial Highlights – Australia/Indonesia Operational/Financial Highlights – Europe Capital Management Growth Strategy Brownfield Developmen
Slide 3: Ramsay Health Care – Overview
RAMSAY HEALTH CARE – OVERVIEW For personal use only Australia’s largest private hospital operator & growing global company 117 hospitals; circa 10,000 beds >30,000 people employed; >22,000 doctors accredited Approaching 3 million patient days per annum Market capitalisation approximately $4 billion
Slide 4: Half-Year Financial Highlights
HALF-YEAR FINANCIAL HIGHLIGHTS For personal use only Core NPAT up 14.0% to $132.0 million Core EPS up 12.8% to 60.8 cents Group revenue up 5.7% to $1.97 billion − Group EBIT up 11.6% to $228.3 million Australia & Indonesia revenue up 7.6% to $1.59 billion − Australia & Indonesia EBIT up 15.3% to $20
Slide 5: Group Operational Highlights
GROUP OPERATIONAL HIGHLIGHTS For personal use only Strong growth in our Australian business continues Operating leverage continues to drive margin growth Completed brownfield developments adding to EBIT & EPS Successful refinancing of debt facility in November 2011 Cash conversion rate above 100% Co
Slide 6: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only HALF-YEAR ENDED 31 DECEMBER 2011 2010 $m $m Increase Australia/ Europe (3) Group Group Indonesia Operating Revenue 1,591.9 378.2 1,970.1 1,864.1 5.7% EBITDA 254.0 45.8 299.8 271.8 10.3% EBIT 201.2 27.1 228.3 204.6 11.6% Core NPAT (1) 132.0 115.8 14.0
Slide 7: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only HALF-YEAR ENDED 31 DECEMBER 2011 2010 Increase $m $m Core NPAT 132.0 115.8 14.0% Specific items & amortisation of intangibles* (net of tax)(1) (6.3) (13.0) Reported Net Profit after tax 125.7 102.8 22.3% 2011 2010 (1) Specific items & amortisat
Slide 8: Group EBITDA Growth
GROUP EBITDA GROWTH For personal use only EBITDA - June Half EBITDA - December Half $299.8m $271.8m $254.5m $233.7m $235.2m $209.8m Jun'09 Jun'10 Jun'11 Dec'09 Dec'10 Dec'11 Group EBITDA up 10.3% to $299.8 million Group EBITDA margin up 62 bps to 15.2% 8
Slide 9: Group Core NPAT & Core EPS
GROUP CORE NPAT & CORE EPS For personal use only June Half December Half $132.0m $115.8m $104.8m $87.4m $91.1m $77.7m 60.8¢ 53.9¢ 47.2¢ 44.6¢ 40.4¢ 40.0¢ Jun'09 Jun'10 Jun'11 Dec'09 Dec'10 Dec'11 Core EPS (cents/share) Core NPAT ($m) Core NPAT up 14.0% to $132.0 million Core EPS up 12.8% to 60.8 cen
Slide 10: Dividend Growth
DIVIDEND GROWTH For personal use only Final Dividend (cents/share) Interim Dividend (cents/share) 29.5¢ 25.0¢ 25.5¢ 21.5¢ 22.5¢ 18.5¢ Jun'09 Jun'10 Jun'11 Dec'09 Dec'10 Dec'11 Interim Dividend fully franked, up 13.3% on the previous corresponding period Ramsay has maintained its dividend payout rati
Slide 11: Operational/Financial Highlights – Australia/Indonesia
OPERATIONAL/FINANCIAL HIGHLIGHTS – AUSTRALIA / INDONESIA For personal use only HALF-YEAR ENDED 31 DECEMBER 2011 2010 Increase $m $m Operating Revenue 1,591.9 1,479.2 7.6% EBITDA 254.0 222.1 14.4% EBIT 201.2 174.4 15.4% EBITDA Margin (%) 15.95% 15.01% 94 bps Strong & growing Australian business is th
Slide 12: Operating Environment – Australia
OPERATING ENVIRONMENT – AUSTRALIA For personal use only Means testing of the PHI rebate to be introduced 1 July 2012 Positive demographics PHI membership continues to grow, with approximately 50,000 people joining in the Dec quarter As at 31 Dec 2011, 45.7% of the population (10.4m) hold private hos
Slide 13: Operational/Financial Highlights – Europe
OPERATIONAL/FINANCIAL HIGHLIGHTS – EUROPE For personal use only HALF-YEAR ENDED 31 DECEMBER United Kingdom France 2011 2010 2011 2010 Increase Increase £m £m €m €m Operating Revenue 176.8 175.9 0.5% 78.6 67.4 16.6% EBITDAR 44.1 43.9 0.4% 12.2 11.5 6.1% United Kingdom EBITDAR margins of 25% remain st
Slide 14: Capital Management - Refinancing
CAPITAL MANAGEMENT - REFINANCING For personal use only Existing senior debt facility of A$1.9 billion* matures in November 2012 In November 2011, a new A$2* billion underwritten debt facility was executed. Subsequently this facility was syndicated, primarily to banks from Australia, Japan, UK and As
Slide 15: Capital Management
CAPITAL MANAGEMENT For personal use only Leverage = Net Debt ÷ EBITDA 6 Affinity Acquisition $1.4B Cash Flow 5.1 $m 5 340 Capio UK Acquisition £193M 290 4 3.7 240 3.3 Ramsay Santé Acquisition €87M 190 3 2.7 2.7 2.4 140 1.9 Dec'10 Dec'11 2 1.7 Gross Operating Cash Flow EBITDA 1 FY05 FY06 FY07 FY08 FY
Slide 16: Successful & Sustainable Growth Strategy
SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY For personal use only 1. Organic growth 2. Brownfield investment 3. Public/Private collaborations 4. Acquisitions 16
Slide 17: Brownfields Developments Update
BROWNFIELDS DEVELOPMENTS UPDATE For personal use only Greenslopes: $47 million development commenced 58 beds; 4 theatres; obstetrics unit Completion: mid 2013 Joondalup: $350 million development New ED; ward block; theatres; new private hospital & specialist medical centre Completion: mid 2013 17
Slide 18: Brownfields Developments Update
BROWNFIELDS DEVELOPMENTS UPDATE For personal use only Beleura & Peninsula Hospitals: Expansion to meet growing demand on Mornington Peninsula New theatres; beds; ICU Completion: early 2012 Mt Wilga: Premier rehab unit in North Sydney 39 new beds; therapy areas; gym Completion: April 2012 18
Slide 19: Brownfields Developments Update
BROWNFIELDS DEVELOPMENTS UPDATE For personal use only St Andrew’s Ipswich: $8 million redevelopment New theatre & day surgery development Completion: early 2012 19
Slide 20: Public/Private Collaborations
PUBLIC/PRIVATE COLLABORATIONS For personal use only Sunshine Coast: Public/Private hospital in partnership with QHealth 200 beds; 8 theatres; day centre; day chemo; ICU Construction commenced 1 Sep 2011 Completion: Dec 2013 20
Slide 21: Strong Industry Fundamentals - Global
STRONG INDUSTRY FUNDAMENTALS - GLOBAL For personal use only Demand for healthcare driven by: Ageing population (first of boomers turned 65 in 2010) Increasing chronic disease burden: − Coronary artery disease & heart failure − Diabetes − Obstructive pulmonary disease (DVA estimate hospital admission
Slide 22: Outlook
OUTLOOK For personal use only Ageing demographic & growing disease burden is leading to increased demand for healthcare Ramsay anticipates ongoing investment in brownfield projects in the order of $100 million per annum Completed brownfield projects adding to earnings at EBIT & EPS level Increasing
Slide 23: Questions
For personal use only QUESTIONS