Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2004 Earnings Presentation
23 slides from Ramsay Health Care's earnings presentation, Feb 26, 2004
Slide 1: Financial results for the six months ended 31 December 2003
aa as RAMSAY HEALTH CARE | Briefing — 26 February 2004 Financial results for the six-months ended 31 December 2003
Slide 2: Overview
Overview Strong half year result despite challenges Focus on cost containment delivers profit growth in line with year target before significant items EBI| r margin above 10% despite cost pressures Organic profit growth continues at 5% Expansion program contributes to earnings growth as extra capaci
Slide 3: Interim Financial Highlights
terim Financial Highlights «» NPAT up 14% to $21m (before non- recurring charge) » NPAT of $18.8m after non-recurring charge ($2.2m net of tax) » Group revenue up 17% to $374.1m » Group EBIT up 14% to $37.6m » EBIT margin of 10.1% «» Underlying EPS of 16.3 cps, up 13% « Interim dividend of 7.5 cps,
Slide 4: Interim Financial Performance
ramsay Interim Financial Performance Half-year ended 31 December 2002 2003 % Inc Operating Revenue EBITDA EBIT Profit before tax & non-recurring charge NPAT before non-recurring charge Non-recurring charge NPAT EPS (cents/share) 14.4 -¢ 14.6.¢ Underlying EPS (cents/share) 14.4.¢ 16.3.¢ Interim Divid
Slide 5: EBIT Growth
EBIT Growth Dec'00 Jun’01 Dec'01 Jun’02 Dec'02 Jun'03 Dec'03 Group EBIT up 14.4% for the half-year EBIT margin 10.1% EBIT margin, excluding Mildura, 10.7% ROIC (EBIT/Funds Employed) of 14.6%
Slide 6: Breakdown of Group EBIT Growth
Breakdown of Group EBIT Growth, 14% Pe Organic growth, 5% = Growth from expanded capacity, 7% = Growth from acquisitions, 2%
Slide 7: NPAT Growth
NPAT Growth cy oS oo Dec'0O Jun'01 Dec'01 Jun'02 Dec'02 Jun'03. Dec'03 m Half year NPAT (before non-recurring charge) up 14% a On track to meet market consensus forecasts for the full year m ROE (NPAT/Shareholder Funds) 15.2% before non-recurring charge
Slide 8: Half-year EBITDA and Gross Operating Cash Flow
Half-year FY 2002 FY 2003 a EBITDA @ Gross Operating Cash Flow. m= Apart from working capital timing differences, half-year EBITDA translates into strong gross operating cash flow. a Effective cash flow management has been maintained
Slide 9: Earnings per Share
Earnings per Share oY os 0] ca wn a o a i) aed — oO oO Dec'00 Jun'01 Dec’01 Jun'02 Dec'O02 Jun'03_ Dec'03 * Underlying EPS 16.3 cents per share
Slide 10: Increased Dividend
Increased Dividend Final Dividend Interim Dividend Cents per Share = - . . 7 7 cl = . 7 ” 7. 1 7 = . 7 a = . 7 7 7 - 7 7 7 . 7 7. : o 7 a 7 - 7 . - Dec'00 Dec'01 Dec02_ Dec'03 Jun'01 i Fully Franked i@ Unfranked
Slide 11: Occupancy and Admissions
Jun'00 Dec'0O0 Jun'01 Dec'01 Jun'02 Dec'02 Jun'03 Dec'03 © Inpatients —*- Total (Inpatients + Day Patients) m Solid increases achieved from already high occupancy levels. m Admissions up 12% in half year
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Slide 14: Organic growth
Organic growth Benefits of expansion program to flow through to 2" half and FY 2005 earnings >» Lake Macquarie expansion opens in H2 » Greenslopes expansion ramp-up Continue to investigate hospital acquisition opportunities (not-for-profits, further industry rationalisation) Balance sheet capacity t
Slide 15: Aged Care
Aged Care Active investigation of acquisition opportunities continues Confident of finding further acquisitions Allocated 186 new residential places in the Annual Aged Care approval rounds bringing the total number of places to 206 Greenfield sites to be developed to open places to the community, wi
Slide 16: Silver Circle Acquisition
Silver Circle Acquisition m Acquired the remaining 75% January’04 m Australia’s largest private home care business: >» Revenue approx $25 m » Largely operating in Victoria = Market growth to underpin demand for services = Fragmentation provides opportunity for consolidation m A bridge to aged care =
Slide 17: FY2004 outlook
=» Barring unforeseen circumstances, comfortable with market consensus for 10% growth in underlying net profit before significant items for FY2004
Slide 18: Appendix
aa as RAMSAY HEALTH CARE Appendix
Slide 19: Revenue Growth Time Line
Revenue Growth Time Line Alpha Group Acquired May’01 Hollywood major expansion Opened July 2002 - Perth Veteran Hosp Privatisation Feb’94 RHC listed on ASX Sept’97 4 Brisbane Veteran Hosp Privatisation Jan‘95 1993 1994 1995 1996 2 1997 1998 1999 2000 200% 2002 2003 Co-located North Shore Private Hos
Slide 20: Financial Indicators
Financial Indicators Six months ended 30 Jun’02 31 bec oe 30 aun 08 31 Dec’03 ROIC 14.9 14.3 14.3 14.6 (EBIT/Funds Employed) %o : : : ; ROE 13.9 14.3 14.6 15.2 @) (NPAT/Shareholder Funds) % : : : Notes: (1) Cairns excluded - acquired in Nov’02 (2) Calculated using rolling 12 months figures (3) Calcu
Slide 21: Facility Portfolio
Facility Portfolio Number Operating Divisions of Facilities Veteran Co-located Regional Medical/Surgical ‘) Psychiatric Rehabilitation Totals (1) Including Coffs Harbour Day Surgery Licensed Beds
Slide 22: Revenue Analysis
Revenue Analysis Revenue by Division Revenue by Payor Source @ Psychiatric O Co-located O Med/Surg & Rehabiliation OU Veteran @ Government O Other O Veteran @ Health Funds
Slide 23: Ramsay Health Care
aa as RAMSAY HEALTH CARE -