Slide 1: Unaudited Interim Group Results for the six months ended 31 March 2017
Netcare Limited UNAUDITED INTERIM GROUP RESULTS for the six months ended 31 March 2017
Slide 2: Netcare Limited Unaudited Interim Group Results
NETCARE LIMITED Results presentation for the six months ended 31 March 2017 30 NETCARE LIMITED UNAUDITED INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2017 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION
Slide 3: Presentation Outline
PRESENTATION OUTLINE Guidance South Africa United Kingdom Group Overview Financial Review NETCARE LIMITED Results presentation for the six months ended 31 March 2017 31
Slide 4: Group Overview
NETCARE LIMITED Results presentation for the six months ended 31 March 2017 32 GROUP OVERVIEW
Slide 5: Group | A comprehensive network of healthcare services
33 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | A comprehensive network of healthcare services 4 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 115 13 401 618 90 Hospitals Hospital Theatres Primary beds healthcare centres¹ 61 85 7 30 050 Renal dialysis Netcar
Slide 6: Group | Financial overview
34 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | Financial overview 5 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Normalised Adjusted 54% Revenue 46% 83% EBITDA¹ 17% 99% 1% HEPS South Africa United Kingdom ▲2.3% Group revenue Normalised Adjusted Interim div
Slide 7: South Africa
SOUTH AFRICA NETCARE LIMITED Results presentation for the six months ended 31 March 2017 35
Slide 8: SA | Healthcare network
36 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION SA | Healthcare network 7 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 54 5 10 604 422 Hospitals Public Private Beds¹ Theatres Partnership hospitals 14 85 811 85 Day clinics PHC² and Renal dialysis Netcare 911 sub-acu
Slide 9: SA | Overview
37 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION SA | Overview 8 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Challenging trading period characterised by low economic growth Hospital activity funded by medical schemes below historic trends due to more active case ma
Slide 10: SA | Overview financials
38 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION SA | Overview financials 9 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 31 Mar 31 Mar Rm 2016 2017 % Revenue 9 011 9 218 2.3 + ▲6.1% Hospital revenue offset by lower revenue in Primary EBITDA¹ 1 957 1 915 (2.1) Care a
Slide 11: SA | Hospital and Emergency Services business update
39 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION SA | Hospital and Emergency Services business update 10 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Analysis of 1% patient day decline (±11 000 patient days) ▼1.0% Occupancy: Increased 7.5% patient days Full week 63.
Slide 12: SA | Hospital and Emergency Services
40 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION SA | Hospital and Emergency Services 11 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 31 Mar 31 Mar Rm 2016 2017 % Revenue 8 438 8 829 4.6 + ▲7.4% revenue per patient day + ▼1.0% patient days EBITDA¹ 1 904 1 865 (2.0)
Slide 13: SA | Primary Care
41 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION SA | Primary Care 12 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 31 Mar 31 Mar Rm 2016 2017 % Revenue 573 389 (32.1) + Outsourcing of retail pharmacies + Wind-down of managed care EBITDA 53 50 (5.7) administration se
Slide 14: SA | New developments for H2 2017
42 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION SA | New developments for H2 2017 13 Cancer Services NETCARE LIMITED Results presentation for the six months ended 31 March 2017 + Netcare Milpark: › Gamma Knife: international gold standard in cranial radiosurgery technology, first in southern Afr
Slide 15: United Kingdom
UNITED KINGDOM NETCARE LIMITED Results presentation for the six months ended 31 March 2017 43
Slide 16: UK | Hospital network
44 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION UK | Hospital network 15 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Flagship hospital Large hospital 59 196 Hospitals¹ Theatres London area 2 797 9 093 Beds Employees 1. 56 hospitals, 3 clinics
Slide 17: UK | Overview
45 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION UK | Overview 16 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 NHS remains under pressure and waiting lists continue to grow NHS volumes now at 43.5% of total caseload Good traction in Self-pay volume growth Private Me
Slide 18: UK | BMI Healthcare (OpCo)
46 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION UK | BMI Healthcare (OpCo) 17 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 31 Mar 31 Mar £m 2016 2017 % Revenue 444.0 458.0 3.2 + ▲2.6% caseload EBITDAR (before items below) 109.7 107.1 (2.4) + GHG PropCo rent £75.7m
Slide 19: UK | Business update
47 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION UK | Business update 18 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 ▲3.2% ▼3.6% revenue PMI caseload driven by with no change ▲2.6% in factors caseload affecting the 56% 83% NHS PMI market Caseload caseload 44% 17% m
Slide 20: UK | NHS
48 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION UK | NHS 19 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 GP NHS referrals to independent sector providers (rolling quarter) (>1 000 referrals) 45 000 + Mounting pressure within the 35 000 NHS 25 000 + Waiting lists ar
Slide 21: UK | Capital investment
49 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION UK | Capital investment 20 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Phase 1 Endoscopy equipment Ambulatory Care Unit at Specialist Eye Centre at refurbishment at BMI replacement programme BMI The Park Hospital BMI
Slide 22: Financial Review
NETCARE LIMITED Results presentation for the six months ended 31 March 2017 50 FINANCIAL REVIEW
Slide 23: Group | Financial overview
51 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | Financial overview 22 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 ZAR/GBP exchange rate (Rand) Challenging Impact of 25 trading currency environment conversion in both geographies 20 Benefit from BMI Healthca
Slide 24: Group | Summarised statement of profit or loss
52 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | Summarised statement of profit or loss 23 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 31 Mar 31 Mar Rm 2016 2017 % + Growth in SA and UK + Decline due to currency Revenue 18 814 16 912 (10.1) conversion Norma
Slide 25: Group | Constant currency performance
53 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | Constant currency performance 24 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Revenue (Rm) Normalised EBITDA (Rm) ▲2.7% ▼8.3% 2 418 706 9 803 130 7 694 398 528 10 112 SA UK Exchange rate impact 9 011 9 218 1 9
Slide 26: Group | Headline earnings per share (HEPS)
54 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | Headline earnings per share (HEPS) 25 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 31 Mar 31 Mar Cents per share 2016 2017 % Adjusted HEPS¹ (cents) HEPS 90.3 107.4 18.9 108.5 SA 86.7 79.6 (8.2) 96.1 99.0 98.2
Slide 27: Group | Summarised statement of financial position
55 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | Summarised statement of financial position 26 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 30 Sep 31 Mar Forex Other Rm 2016 2017 effect movement Assets PPE¹, goodwill and intangible assets 18 677 18 641 (403)
Slide 28: Group | SA debt
56 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | SA debt 27 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 31 Mar 30 Sep 31 Mar Rm 2016 2016 2017 Gross debt 4 647 4 535 5 047 Facility utilisation (Rm) Cash (494) (948) (323) 7 423 Net debt 4 153 3 587 4 724 Net
Slide 29: Group | UK debt: BMI Healthcare
57 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | UK debt: BMI Healthcare 28 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 31 Mar 30 Sep 31 Mar £m 2016 2016 2017 Gross debt 168.5 167.9 179.0 Facility utilisation (£m) Cash (47.4) (57.9) (64.2) 64.2 Net debt 121
Slide 30: Group | UK debt: refinanced facilities
58 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Group | UK debt: refinanced facilities 29 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Term Loan B Revolving Credit Facility 2nd Lien Debt¹ + Facility: £85.0m + Facility: £50.0m + Facility: £67.5m + Cost of debt: LIBO
Slide 31: Guidance
GUIDANCE NETCARE LIMITED Results presentation for the six months ended 31 March 2017 59
Slide 32: Guidance | SA outlook
60 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Guidance | SA outlook 31 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Near term Medium term Expected Capital expenditure Economic pressures Resilient demand for full-year margin ±R1.7bn: and medical scheme private hea
Slide 33: Guidance | UK outlook
61 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Guidance | UK outlook 32 32 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Increasingly NHS tariff reduction Full-year margin Over £50m competitive from April 2017 to reflect capital investment operating first half tren
Slide 34: Thank You
NETCARE LIMITED Results presentation for the six months ended 31 March 2017 62 THANK YOU May 2017 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION
Slide 35: Appendices
APPENDICES NETCARE LIMITED Results presentation for the six months ended 31 March 2017 63
Slide 36: Appendix | UK income statement – segmental analysis
64 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Appendix | UK income statement – segmental analysis 35 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 BMI GHG United £m Healthcare PropCo 2¹ Kingdom Revenue 458.0 458.0 EBITDAR 107.1 107.1 GHG Property Business rentals
Slide 37: Appendix | Group borrowings at March 2017
65 CARE • DIGNITY • TRUTH • PARTICIPATION • PASSION Appendix | Group borrowings at 31 March 2017 36 NETCARE LIMITED Results presentation for the six months ended 31 March 2017 Gross borrowings Net borrowings 31 Mar 30 Sep 31 Mar 31 Mar 30 Sep 31 Mar Rm 2016 2016 2017 2016 2016 2017 SA 4 647 4 535 5
Slide 38: NETCARE LIMITED Results presentation for the six months ended 31 March 2017
NETCARE LIMITED Results presentation for the six months ended 31 March 2017 66
Slide 39: Administration
Administration 67 Netcare Limited Company Secretary (Registration number 1996/008242/06) L Bagwandeen NETCARE LIMITED Results presentation for the six months ended 31 March 2017 JSE ordinary share code: NTC ISIN: ZAE000011953 Sponsor JSE preference share code: NTCP Deutsche Securities (SA) Proprieta
Slide 40: Investor relations
NETCARE LIMITED Results presentation for the six months ended 31 March 2017 68 Investor relations: ir@netcare.co.za www.netcare.co.za