Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2022 Earnings Presentation
35 slides from Ramsay Health Care's earnings presentation, Aug 26, 2022
Slide 1: FY22 Result Presentation
Ramsay Health Care FY22 Result Presentation 12 months ended 30th June 2022 Managing Director & CEO, Craig McNally Group Chief Financial Officer, Martyn Roberts People caring for people
Slide 2: Important Information
Important Information This presentation is in summary form and is not necessarily complete. It should be read together with the Ramsay Group’s unaudited consolidated financial statements lodged with the ASX on 26th August 2022. This presentation contains information that is based on projected and/or
Slide 3: Agenda
Agenda 01 Key Themes Key Themes 02 Group FY22 Financial Highlights 03 Regional Highlights & Outlooks 04 Group Financials 05 Strategic Direction & Group Outlook 06 Questions 05 3 People Caring for People - FY22 Results Briefing 12 Months Ended 30 June 2022
Slide 4: Key Themes
Key Themes Ramsay’s employees, clinicians and facilities continued to provide support to the public health sector through further waves of COVID and have supported communities through localised crises with healthcare services and supplies Ramsay has taken the decision to retain its core hospital ope
Slide 5: Investment in Our People
Investment in Our People 5 People Caring for People - FY22 Results Briefing 12 Months Ended 30 June 2022
Slide 6: Group FY22 Financial Results
Group FY22 Financial Results 12 months ended June A$'m $'m % chg on pcp Total revenue and other income (less interest income) 13,740.0 3.1 Earnings were impacted by the ongoing disruption caused by EBITDAR¹ 1,967.6 (10.7) the high numbers of COVID cases in the community on activity levels, case mi
Slide 7: Australia – Highlights
Australia – Highlights Result Overview Results for 12 months to 30th June 2022 ($’m) • The business continued to support the national response to COVID providing staff and capacity to state governments 5,430 5,331 • The first nine months of FY22 were impacted by lock-downs and isolation orders combi
Slide 8: Trends in Admissions
Trends in Admissions FY22 Admissions by work day vs FY21 and FY19 FY22 Revenue by State vs FY21 and FY19 (ex Mildura) (%chg) (ex Mildura) (% chg) 5 6 2 3 1 7 1 6 4 3 flat 2 -4 -2 -5 -10 flat -1 -16 -4 Surgical Medical Psych Rehab Maternity Total NSW Queensland WA & SA Victoria (ex Mildura) % chg vs
Slide 9: Australia – Investment Highlights
Australia – Investment Highlights Creating a best in class, digitally enabled healthcare ecosystem Hospitals Day Surgery Out of Hospital / Community • Projects completed include In Hospital • Growth to 11 psychology sites in FY22. • FY22 Brownfield/greenfield capital expenditure - $181m •
Slide 10: Australia – Digital and Data Strategy
Australia – Digital and Data Strategy To achieve Ramsay’s vision to be a digitally enabled patient RAMSAY AUSTRALIA DIGITAL AND DATA STRATEGY centric integrated health care provider the business has embarked on a digital transformation in Australia The strategy has been developed to deliver a be
Slide 11: UK – Highlights and Outlook
UK – Highlights and Outlook Result Overview UK result for 12 months to 30th June ($’m) • Ramsay UK reverted to pre COVID commercial arrangements with NHS for most of the year however it (includes 5 months of Elysium ownership in FY22) continued to assist during the Omicron surge in cases • Admission
Slide 12: Europe – Ramsay Santé Highlights and Outlook
Europe – Ramsay Santé Highlights and Outlook Result Overview Result for 12 months to 30th June ($’m) • Ramsay Santé continued to support governments to manage the pandemic 6,504 6,707 • The business reported growth in activity levels over the 12-month period heavily weighted to day procedures and ou
Slide 13: Asian Joint Venture – Ramsay Sime Darby (RSD)
Asian Joint Venture – Ramsay Sime Darby (RSD) Result Overview Equity Accounted Contribution Year Ended 30 June • RSD reported a 9.3% increase in revenue over the pcp over the twelve month period, (A$’m) driven primarily by the inclusion of a full year of the Bukit Tinggi Medical Centre in Malaysia,
Slide 14: Ramsay is driving action through three pillars
Ramsay is driving action through three pillars: healthier people, stronger communities and a thriving planet. • First ‘Quality of Life & Working Conditions’ agreement in Europe • Enterprise-wide HR and Electronic Patient Record systems in UK • New nursing advancement programs • Global and regional l
Slide 15: Group Financials
Group Financials Group CFO Martyn Roberts ramsayhealth.com
Slide 16: FY22 Group Performance
FY22 Group Performance Revenue from "Governments under COVID support contracts" reflects 12 months Ended 30th June A$'m 2022 2021 (%)chg (%)chg cc* payments received under agreements with governments in both the UK Revenue from patients and other revenue 13,174.0 12,435.5 5.9 7.4 and Australia Rev
Slide 17: Cashflow
Cashflow Year ended 30 June A$'m 2022 2021 Chg (%) EBITDA 1,830.2 2,053.5 (10.9) The movement in working capital is primarily the result of an Changes in working capital (457.1) (72.7) (528.7) increase in the trade and other receivables amounts as funding from Finance costs (375.4) (367.5) (2.1) t
Slide 18: Capital Expenditure
Capital Expenditure Capital Expenditure by region ($'m) FY22 Group Capital Expenditure by Type (%) FY22 Group Capital Expenditure by Region (%) 0.85-1.0bn 42 733 674 38 46 42 380-460 356 334 300--350 307 260 170-205 58 93 8 12 12 Asia Pacific UK Europe Total FY21 FY22 FY23F Routine & Compliance Grow
Slide 19: Capital Employed and Balance Sheet
Capital Employed and Balance Sheet A$'m 30/06/2022 31/12/2021 30/06/2021 Working capital (337.7) (368.5) (794.8) Property plant & equip 4,806.9 4,537.1 4,488.6 Intangible assets 5,799.0 4,320.6 4,233.6 Current & deferred tax assets 111.7 177.5 150.7 Other assets/(liabilities) (153.9) (305.0) 1,646.2
Slide 20: Leverage
Leverage Reported Leverage and Debt Metrics as at 30th June $’m 12,000 5.7x Funding group leverage¹ reflects the significant investment in the business over the twelve 10,000 4.7x 4.2x month period combined with the impact of 5,482 8,000 5,271 COVID on activity levels and margins 6,000 2.9x Leve
Slide 21: Strategy and Outlook
Strategy and Outlook Managing Director and CEO Craig McNally ramsayhealth.com
Slide 22: Ramsay will continue to invest in its strategy
Ramsay will continue to invest in its strategy to be a leading integrated healthcare provider of the future 22 People Caring for People - FY22 Results Briefing 12 Months Ended 30 June 2022
Slide 23: Group Outlook
Group Outlook Ramsay has invested approximately $2.7 billion over the past two financial years to expand and upgrade its facilities and broaden its service base. This investment is underpinned by: demographic trends driving strong demand for healthcare services in western countries; advances in cl
Slide 24: Questions
Questions ramsayhealth.com
Slide 25: Appendix - Partnerships with Government
Appendix - Partnerships with Government During the twelve months to 30 June 2022, Ramsay continued to make its facilities and services available to support public health systems in Australia, France and the United Kingdom. The status of the arrangements are detailed below. Australia United Kingdom F
Slide 26: Presentation speech: Front Cover
ASX ANNOUNCEMENT 26th August 2022 Ramsay Health Care FY22 Final Results - Presentation Speech Slide 1 Front Cover Good morning, everyone and thank you for joining us for our FY22 full year results presentation webcast. My name is Craig McNally, and I am the Managing Director & CEO of Ramsay Health C
Slide 27: We have made two acquisitions of note this year
We have made two acquisitions of note this year, the mental health services business Elysium Healthcare (Elysium) in the UK and Swedish specialty health care business, GHP Specialty Care (GHP). Both businesses build on our existing capabilities and are expected to be EPS accretive in FY23. The focus
Slide 28: Cases in all our markets
cases in all our markets. Government mandated surgical restrictions and movement and isolation orders resulted in lower activity, higher costs and a change in case mix. As the world has moved to “living with COVID” our facilities have continued to juggle the impact on activity levels and costs of la
Slide 29: The business is focused on driving growth in volumes
The business is focused on driving growth in volumes, addressing cost inflation by achieving improved commercial terms with payors, building on our strong global procurement advantage and driving productivity back to pre-pandemic levels Slide 8 Australia - Trends in Admissions Moving to look at some
Slide 30: As we highlighted last year
As we highlighted last year, we are focused on growing our day surgery capacity both within hospitals and through standalone facilities with several new sites approved this year and others under consideration. We have opened 11 new Ramsay Psychology clinics in Australia over the past 12 months and w
Slide 31: The result includes $26.2m of transaction costs
The result includes $26.2m of transaction costs and an $18m write down of inventory. Capital expenditure in brownfield and new developments for the period was $46m with projects including the completion of Buckshaw hospital in Chorley, the third hospital the business has opened during the pandemic.
Slide 32: Consistent with its strategy to enter adjacent healthcare service markets
Consistent with its strategy to enter adjacent healthcare service markets, Ramsay Santé made a number of acquisitions in the Nordics region the most significant being the acquisition of GHP based in Sweden. Turning to the outlook While COVID is expected to continue to impact the operating environmen
Slide 33: Slide 15 – Group Financials
Slide 15 – Group Financials Slide 16 – Group Performance Thanks Craig and good morning, everyone. Turning to the P&L. The components of total revenue are slightly distorted primarily due to the UK business moving back to its pre COVID commercial arrangements with the NHS, which saw its revenue contr
Slide 34: Spend in FY23 is expected to be in the range
Spend in FY23 is expected to be in the range of $0.85-1bn. Spend in FY24 and FY25 is expected to remain high due to additional projects combined with delayed projects. Slide 19 – Capital Employed and Balance Sheet I have already covered off the main movements on the balance sheet for the period bein
Slide 35: And finally, the fourth pillar
And finally, the fourth pillar is about reinforcing Ramsay's strong organisational foundations to underpin the strategy and ensure we leverage our scale. Slide 23 – Group Outlook And now turning to the trading outlook. Over the past two fiscal years we have invested approximately $2.7bn to expand an