Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2011 Earnings Presentation
19 slides from Ramsay Health Care's earnings presentation, Feb 24, 2011
Slide 1: Financial Results Half-year ended 31 December 2010
For personal use only Briefing – 24 February 2011 Financial Results Half-year ended 31 December 2010 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only Half-year Financial Highlights Financial Performance – Group, Australia, UK, France Operating Environment – Australia, UK, France Brownfield Developments Update Capital Management Successful & Sustainable Growth Strategy Outlook 2
Slide 3: Half-Year Financial Highlights
HALF-YEAR FINANCIAL HIGHLIGHTS For personal use only Strong core NPAT reflects underlying strength of Australian business, ramp-up of brownfields and continuing growth in the UK Core net profit after tax up 27.1% to $115.8 million Core EPS up 20.8% to 53.9 cents Australia and Indonesia revenue
Slide 4: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only HALF-YEAR ENDED 31 DECEMBER FY11 FY10 % $m $m Increase Australia/ UK France Group(1) Group Indonesia Operating Revenue 1,479.2 290.5 94.4 1,864.1 1,682.9 10.8% EBITDA 222.1 37.4 12.3 271.8 235.3 15.6% EBIT 174.4 22.8 7.3 204.6 171.6 19.2% Core NPAT (
Slide 5: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only HALF-YEAR ENDED 31 DECEMBER FY11 FY10 % $m $m Increase Core NPAT 115.8 91.1 27.1% Specific items & amortisation of intangibles (net of tax) (1) (13.0) (12.5) Reported Net Profit after Tax 102.8 78.6 30.8% FY11 FY10 (1) Specific items & amortisa
Slide 6: Group Core NPAT and Core EPS
GROUP CORE NPAT AND CORE EPS For personal use only June Half December Half 27.1% $115.8m $91.1m $87.4m $77.7m 20.8% $68.7m $61.5m $115.8m Jun ‘08 Jun ‘09 Jun ‘10 Dec ‘08 Dec ‘09 Dec ‘10 Core EPS (cents/share) Core NPAT (A$m) Core NPAT up 27.1% to $115.8 million Core EPS up 20.8% to 53.9 cents 6
Slide 7: Dividend Growth
DIVIDEND GROWTH For personal use only Final Dividend Interim Dividend 25.0¢ 22.5¢ 21.5¢ 18.5¢ 17.5¢ 16.5¢ Jun ‘08 Jun ‘09 Jun ‘10 Dec ‘08 Dec ‘09 Dec ‘10 Dividends (cents per share) Interim dividend up 21.6% on the previous corresponding period Ramsay has maintained its dividend payout ratio whi
Slide 8: Financial Performance – Australia/Indonesia
FINANCIAL PERFORMANCE – AUSTRALIA/INDONESIA For personal use only HALF-YEAR ENDED 31 DECEMBER FY11 FY10 Increase $m $m Operating Revenue 1,479.2 1,360.3 8.7% EBITDA 222.1 190.9 16.3% EBIT 174.4 149.3 16.8% EBITDA Margin (%) 15.0% 14.0% 100 bps Australia and Indonesia performed strongly on all oper
Slide 9: Financial Performance – UK
FINANCIAL PERFORMANCE – UK For personal use only HALF-YEAR ENDED 31 DECEMBER FY11 FY10 Increase/ £m £m (Decrease) Operating Revenue 175.9 171.6 2.5% EBITDAR 43.9 43.8 0.2% EBIT 13.8 11.8 16.9% EBITDAR Margin (%) 25.0% 25.5% (50 bps) Margins holding up well under new ISTC pricing regime and taperin
Slide 10: Operating Environment - Australia
OPERATING ENVIRONMENT - AUSTRALIA For personal use only Private hospital sector an integral part of the Australian health care system, treating more than 40% of all patients Stable operating environment Public system subject to reforms Little or no impact for the private sector Bipartisan
Slide 11: Operating Environment - UK
OPERATING ENVIRONMENT - UK For personal use only Economy remains challenged and facing substantial public expenditure cuts NHS largely protected from spending cuts Major reorganisation of NHS currently underway Private sector involvement recognised as vital and could grow PMI remains flat
Slide 12: Operating Environment - France
OPERATING ENVIRONMENT - FRANCE For personal use only Operating environment stable Current blended provision well regarded Economy appears robust Reorganisation of health administration undertaken has devolved decision making Growth in demand underpinned by positive demographics 12
Slide 13: Brownfield Developments Update
BROWNFIELD DEVELOPMENTS UPDATE For personal use only Ageing and expanding population fuelling ongoing investment in brownfield developments − Beyond current brownfield commitments, Ramsay anticipates investing approximately $100M per year on average on new projects to meet growing demand for healt
Slide 14: Brownfield Developments Update: Key Projects Opened in FY11
BROWNFIELD DEVELOPMENTS UPDATE For personal use only Key projects which have opened in FY11 Hospital Project Opened North Shore (Sydney) Additional private rooms, theatres, October 2010 birthing units and car parking Cairns Clinic New psychiatric clinic October 2010 Additional operating theatres,
Slide 15: Brownfield Developments Update: Projects Opened and Upcoming
BROWNFIELD DEVELOPMENTS UPDATE For personal use only Key projects which have opened in FY11 Hospital Project Opened North West (Brisbane) New theatres, day surgery, beds and delivery suites February 2011 Kareena (Sydney) Additional beds, theatres, rehabilitation gym, hydrotherapy February 2011 poo
Slide 16: Capital Management
CAPITAL MANAGEMENT For personal use only Leverage = Net Debt / EBITDA Debt Profile 6.0 Affinity Acquisition − Committed senior bank debt 5.1 $1.4 B facilities of $1.9B in place until November next year 5.0 Capio UK − Headroom of $600-$700M Acquisition £193 M after current brownfield 4.0 3.7 commit
Slide 17: Successful & Sustainable Growth Strategy
SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY For personal use only Three key drivers of growth Organic − Underpinned by demographics, quality portfolio of hospitals, ongoing business improvement Brownfield investment − Growing demand driving Ramsay’s ongoing investment in capacity expansion Acquis
Slide 18: Outlook
OUTLOOK For personal use only Business well positioned to continue performing strongly Ramp-up of completed Brownfield developments to continue adding to earnings at EBIT and EPS level Ramsay UK continues to perform strongly in a challenging environment Opportunities for consolidation in Fra
Slide 19: Questions
For personal use only QUESTIONS