Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2009 Earnings Presentation
19 slides from Ramsay Health Care's earnings presentation, Feb 26, 2009
Slide 1: Financial Results Half Year ended 31 December 2008
For personal use only Briefing – 26 February 2009 Financial Results Half Year ended 31 December 2008 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only • Half-year overview • Financial performance: Group and Australia & Indonesia • Operational highlights: Australia & Indonesia and Ramsay UK • Strong company in resilient industry • Clear support for balanced health system • PHI membership solid • Strong growth strategy •
Slide 3: Half-Year Overview
HALF-YEAR OVERVIEW For personal use only Strong rise in Group net profit • Core Net Profit After Tax up 11.6% to $68.7 million • Core EPS up 11.0% to 33.8 cents • Group revenues up 35.5% to $1.6 billion ¾ Australia and Indonesia revenue up 12.0% to $1.3 billion • Group EBIT up 23.3% to $148.7 millio
Slide 4: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only HALF YEAR ENDED 31 DECEMBER 2008 2007 % Increase $m $m Continuing Operations Australia & UK (1) Group (1) Group (1) Indonesia Operating Revenue 1,264.1 343.6 1,607.7 1,186.7 35.5% EBITDAR (2) 183.8 74.1 258.0 177.1 45.6% EBITDA 171.4 30.4 201.8 157.0
Slide 5: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only HALF YEAR ENDED 31 DECEMBER 2008 2007 % Increase $m $m Core NPAT – continuing operations 68.7 61.5 11.6% NPAT – divested operations – (1.2) Specific items and amortisation of intangibles (net of tax) (14.9) (9.3) Reported Net Profit after Tax 53.7 50
Slide 6: Financial Performance - Australia & Indonesia
FINANCIAL PERFORMANCE - AUSTRALIA & INDONESIA For personal use only HALF YEAR ENDED 31 DECEMBER 2008 2007 % Continuing Operations $m $m Increase Operating Revenue 1,264.0 1,127.5 12.1% EBITDAR 183.8 165.3 11.2% EBITDA 171.4 153.8 11.4% EBIT 134.1 120.9 10.9% • Australia and Indonesia, the Group’s hi
Slide 7: Group Core NPAT and EPS
GROUP CORE NPAT AND EPS For personal use only CORE NPAT 80.0 70.0 68.7 60.0 61.5 61.5 50.0 54.8 56.2 $m 40.0 46.2 30.0 20.0 10.0 • Group core NPAT 0.0 Jun'06 Jun'07 Jun'08 Dec'06 Dec'07 Dec'08 up 11.6% • Group core EPS up CORE EPS 11.0% 38.0 34.0 33.8 11.0% Cents/Share 30.0 30.3 30.4 26.0 27.8 26.7
Slide 8: Interim Dividend
INTERIM DIVIDEND For personal use only Final Dividend Interim Dividend 18 16 17.5 16.5 Cents/Share 10.0% 16.0 14 15.0 12 13.5 13.0 10 8 6 Jun'06 Jun'07 Jun'08 Dec'06 Dec'07 Dec'08 • Interim dividend up 10.0%, tracking growth in core EPS of 11.0% • Capacity to grow dividends highlights resilience of
Slide 9: Capital Management
CAPITAL MANAGEMENT For personal use only • Ramsay has committed debt funding in place until November 2012 – Underwritten by strong and consistent cash flow – The undrawn portion of the facility provides Ramsay with adequate headroom not only for its capital expansion programme but for future growth
Slide 10: High Cash Conversion
HIGH CASH CONVERSION For personal use only $m 250.00 Half year Dec 08 200.00 150.00 100.00 50.00 0.00 Group Dec 07 Australia & Indonesia Ramsay UK Group EBITDA (continuing operations) Total Gross Operating Cash Flow • High cash conversion rate from Australian & Indonesian hospitals • Pleasing result
Slide 11: Operational Highlights – Australia & Indonesia
OPERATIONAL HIGHLIGHTS – AUSTRALIA & INDONESIA For personal use only • Australia & Indonesia revenue growth up 12.1% • Australia & Indonesia EBIT growth up 10.9% • Australia & Indonesia EBITDA hospital margins (excluding prostheses) rose to 18.2% from 18.0% • Total admissions for Ramsay’s Australian
Slide 12: Operational Highlights – UK
OPERATIONAL HIGHLIGHTS – UK For personal use only • Integration of Ramsay UK largely complete – Remaining work focused on improvements and efficiencies • NHS work is continuing to grow in private hospitals, now comprises more than 40% of Ramsay UK admissions, up from 20% a year ago • Whilst NHS volu
Slide 13: Ramsay UK - Growth of CAB
RAMSAY UK - GROWTH OF CAB For personal use only Monthly Appts Booked 13
Slide 14: Strong Company in Resilient Industry
STRONG COMPANY IN RESILIENT INDUSTRY For personal use only • Industry fundamentals underpin growth • Ramsay is well positioned in the current climate • First-half result reflects the strength and resilience of the underlying business and the industry • Ramsay’s continued investment in its existing b
Slide 15: Clear Support for Balanced Health System
CLEAR SUPPORT FOR BALANCED HEALTH SYSTEM For personal use only • Government blueprint for long-term Australian health care reform clearly supports a balanced system “Australia’s mix of public and private financing is generally regarded as one of the strengths of our health system. We believe that ba
Slide 16: PHI Membership Solid
PHI MEMBERSHIP SOLID For personal use only • Latest Australian PHI (Private Health Insurance) data defies slowing economy and changes to MLS (Medicare Levy Surcharge) • 44.8% of all Australians covered – highest proportion of people covered for hospital treatment since December 2001 “While this figu
Slide 17: Strong Growth Strategy
STRONG GROWTH STRATEGY For personal use only • Ramsay has three major drivers of growth: – Organic growth: • Underpinned by patient demographics • Quality portfolio of hospitals • Continual business management improvement • Ramp up of Ramsay UK – Brownfields: • Investing $580 million (net) to expand
Slide 18: Outlook
OUTLOOK For personal use only • Ramsay’s underlying business remains solid and tracking in line with expectations • Ramsay is well positioned in current climate • Strong industry fundamentals to underpin future growth • Ramsay UK on track to be EPS accretive in FY09, one year ahead of schedule (as p
Slide 19: Questions
For personal use only QUESTIONS