Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2016 Earnings Presentation
28 slides from Ramsay Health Care's earnings presentation, Feb 25, 2016
Slide 1: Results Briefing
Results Briefing Half Year ended 31 December 2015 Christopher Rex, Managing Director 25 February 2016
Slide 2: Agenda
AGENDA 1. Group Operational and Financial Highlights 2. Segment Operational and Financial Highlights 3. Growth Strategy Update 4. Acquisitions 5. Outlook 2
Slide 3: Ramsay Health Care
RAMSAY HEALTH CARE • Over 50 year’s experience in operating hospitals • 221 hospitals across 6 countries • 25,000 beds and places • Employs circa 60,000 people • Admits circa 3 million patients per annum • Ranked in the top 5 private hospital operators in the world 3
Slide 4: Group Operational and Financial Highlights
Group Operational and Financial Highlights
Slide 5: Half-Year Financial Highlights
HALF-YEAR FINANCIAL HIGHLIGHTS • Core NPAT up 16.2% to $237.4 million • Core EPS up 16.9% to 114.1 cents • Group: − Revenue up 24.9% to $4.2 billion − EBIT up 12.7% to $425.9 million • Australia/Asia: − Australia Revenue up 7.4% to $2.2 billion − Australia EBIT up 9.4% to $302.7 million − Equity acc
Slide 6: Half-Year Operational Highlights
HALY-YEAR OPERATIONAL HIGHLIGHTS • Solid growth across global portfolio • Integration of Ramsay Santé and Générale de Santé completed on 1 July 2015. The combined Group performing well • Acquired a further nine hospitals in Lille, France (completed December 2015) • Completed $126m in brownfield capa
Slide 7: Group Financial Performance
GROUP FINANCIAL PERFORMANCE 2015 2014 Six Months Ended 31 December $m $m Increase Revenue 4,173.1 3,341.2 24.9% EBITDAR 797.7 639.5 24.8% EBITDA 606.7 511.2 18.7% EBIT 425.9 377.8 12.7% Core NPAT attributable to members of the parent (1) 237.4 204.4 16.2% Core EPS (2) (cents per share) 114.1¢ 97.6¢
Slide 8: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT 2015 2014 Six Months Ended 31 December $m $m Increase Core NPAT 237.4 204.4 16.2% Non-core Items, net of tax (1) (12.6) (13.0) Reported Net Profit after tax attributable to members of 224.9 191.4 17.5% the Parent Note: (1) Non-core items, net of tax includes the non
Slide 9: Core NPAT and Core EPS
CORE NPAT and CORE EPS June Half December Half 237.4 207.7 204.4 174.6 171.6 142.7 114.1 99.0 97.6 82.8 81.2 66.9 Jun'13 Jun'14 Jun'15 Dec'13 Dec'14 Dec'15 Core EPS (cents/share) Core NPAT ($m) • Core NPAT up 16.2% to $237.4 million • Core EPS up 16.9% to 114.1 cents 9
Slide 10: Dividend Growth
DIVIDEND GROWTH Full-year Dividends Interim Dividend 101.0 FY 2016 85.0 70.5 60.5 51.0 41.5 40.5 47.0 29.0 34.0 FY'13 FY'14 FY'15 Dec'15 Interim Dividend Final Dividend • Strong consistent growth in dividends • Interim dividend fully franked, up 16.0% on previous corresponding interim dividend, in l
Slide 11: Leverage and Cash Management
LEVERAGE AND CASH MANAGEMENT Consolidated Balance Sheet Leverage Ratio* 6x Affinity Acquisition 5.1 5x Capio UK Acquisition RGdS Strong operating cash flow Ramsay Santé Acquisition Acquisition of and strong balance sheet with HPM financial flexibility to continue 4x 3.7 Générale de Santé to fund: 3.
Slide 12: Segment Operational and Financial Highlights
Nth Hi “ey Segment Operational and Financial Highlights
Slide 13: Global Operating Environment
GLOBAL OPERATING ENVIRONMENT Demand for healthcare globally will remain strong with an ageing population, longer life expectancy, increased chronic disease burden, population growth, and improvements in treatments and diagnostic methods. Chronic Diseases Ageing Population • Chronic diseases are, • M
Slide 14: Financial Highlights – Australia & Asia
FINANCIAL HIGHLIGHTS – AUSTRALIA & ASIA 2015 2014 Six Months Ended 31 December Inc./Dec. $m $m AUSTRALIA(1) Revenue 2,188.8 2,037.3 7.4% EBITDAR 389.5 356.6 9.2% EBIT 302.7 276.7 9.4% EBIT Margin (%) 13.8% 13.6% 25 bps ASIA Equity accounted share of net profits of joint venture 4.4 6.3(2) -29.9% Aus
Slide 15: Current Operating Environment - Australia
CURRENT OPERATING ENVIRONMENT - AUSTRALIA Strong industry fundamentals HISTORIC AND PROJECTED OVERNIGHT BED DAYS remain: 3,000,000 ACCORDING TO AGE GROUP • Private health insurance 2,500,000 membership remains strong with 47.2% of the population having 2,000,000 hospital treatment insurance (as at D
Slide 16: Current Operating Environment - Australia (continued)
CURRENT OPERATING ENVIRONMENT - AUSTRALIA (continued) Government Reviews: • Ramsay is participating in the relevant government reviews currently underway which should achieve sensible, realistic outcomes to further enhance the existing health care system • The healthcare system in Australia produces
Slide 17: Financial Highlights – United Kingdom
FINANCIAL HIGHLIGHTS – UNITED KINGDOM 2.7% 198.1 203.4 4.0% 50.5 4.1% 48.5 24.9 26.0 6 months ended 31 Dec'14 6 months ended 31 Dec'15 Revenue (£m) EBITDAR (£m) EBITDA (£m) • Ramsay’s UK business continues to perform well with EBIT rising 9.3% to £17.0 million • NHS admissions increased by 8.3% in t
Slide 18: Financial Highlights – France
FINANCIAL HIGHLIGHTS – FRANCE 57.2% 1,015.6 646.1 49.6% 39.5% 129.4 82.6 193.6 115.2 6 months ended 31 Dec'14 (1) 6 months ended 31 Dec'15 Revenue (€m) EBITDAR (€m) EBITDA (€m) • Integration of Ramsay Santé and Générale de Santé (GdS) completed • The combined group performed well in a challenging en
Slide 19: Growth Strategy Update
Nth Hi “ey Growth Strategy Update
Slide 20: Growth Strategy
GROWTH STRATEGY Acquisitions Exploring further Public/Private acquisitions in Collaborations existing and other Brownfield Capacity Expansion Global focus on markets Organic Growth increasing private Ramsay has proven Unmet demand Underpinned by sector role in it can export its driving Ram
Slide 21: Brownfield Developments
BROWNFIELD DEVELOPMENTS • Positive demographics and ageing population driving continued investment in capacity expansion • In the half year to Dec 15, Ramsay completed $126M worth of expansion projects delivering a total of 186 beds and 8 operating theatres including: • Hollywood Private (60 beds; 6
Slide 22: Brownfield Developments (Continued)
BROWNFIELD DEVELOPMENTS (Continued) Wollongong Private Hospital opened in January 2016 with 151 beds and 10 theatres. The new hospital has attracted new doctors and will stem the outflow of Wollongong patients to Sydney. 22
Slide 23: Brownfield Developments (Continued)
BROWNFIELD DEVELOPMENTS (Continued) Pipeline of over 400 (310 net) beds and 12 additional theatres will open over the next 12 months including: • 71 beds and new emergency Centre at Peninsula Private • 35 beds and three theatres at St George Private • 56 beds at New Farm Clinic • 45 beds and one the
Slide 24: Acquisitions - France
ACQUISITIONS - FRANCE • Ramsay Générale de Santé (RGdS) acquired the HPM Group in December 2015 • The HPM group includes nine hospitals in Lille, France • RGdS presence in Lille now comprises: • 11 facilities • 2180 employees • 700 doctors • Treating 160,000 patients per annum Clinique Ambroise Paré
Slide 25: Outlook
Outlook
Slide 26: Our Formula for Success
OUR FORMULA FOR SUCCESS Strong Culture • The Ramsay Way • Over 50 years of uninterrupted focus on clinical quality and safety • Long term stable and experienced Board and management Strong and Sustainable Growth Strategy • Focused strategy • Developed an exportable operational model • Undertaken suc
Slide 27: Outlook
OUTLOOK • Demand for healthcare continues to be driven by ageing; population growth; emerging technology and the rising rate of chronic disease • These factors together with increasing expectations of consumers will continue to drive hospital utilisation • With our strategically located portfolio of
Slide 28: Questions
Questions