Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2014 Earnings Presentation
25 slides from Ramsay Health Care's earnings presentation, Feb 25, 2014
Slide 1: Results Briefing, Six months ended 31 December 2013
For personal use only Ramsay Health Care Limited Results Briefing Six months ended 31 December 2013 Christopher Rex, Managing Director 25 February 2014
Slide 2: Agenda
AGENDA For personal use only 1. Group Operational and Financial Highlights 2. Segment Operational and Financial Highlights 3. Growth Strategy Update 4. Outlook 2
Slide 3: Ramsay Health Care Today
RAMSAY HEALTH CARE TODAY For personal use only • 151 hospitals across five countries • Over 14,500 beds • Employs over 30,000 people • Admits over 1.4 million patients per annum • Ramsay Health Care turns 50 years in 2014 3
Slide 4: Group Operational and Financial Highlights
For personal use only Group Operational and Financial Highlights 4
Slide 5: Half-Year Financial Highlights
HALF-YEAR FINANCIAL HIGHLIGHTS For personal use only • Core NPAT up 15.8% to $171.6 million • Core EPS up 17.5% to 81.2 cents • Group: − Revenue up 13.9% to $2.4 billion − Group EBIT up 14.3% to $284.0 million • Australia/Asia: − Revenue up 10.2% to $1.9 billion − EBIT up 13.2% to $251.2 million • E
Slide 6: Half Year Operational Highlights
HALF YEAR OPERATIONAL HIGHLIGHTS For personal use only • Excellent operating performance across global portfolio • A further $70 million in brownfield capacity expansion approved since 1 July 2013 for Australian facilities • Successfully executed the Company’s global expansion strategy: − Acquired M
Slide 7: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only 2013 2012 Six Months Ended 31 December $m $m Increase Revenue 2,360.1 2,072.0 13.9% EBITDA 362.8 318.8 13.8% EBIT 284.0 248.4 14.3% Core NPAT (1) 171.6 148.2 15.8% Core EPS (2) (cents per share) 81.2¢ 69.1¢ 17.5% Interim Dividend – fully franked (cen
Slide 8: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only 2013 2012 Six Months Ended 31 December $m $m Increase Core NPAT 171.6 148.2 15.8% Non-core Items, net of tax (1) (13.8) (9.8) Reported Net Profit after tax 157.8 138.4 13.9% (1) Non-core items, net of tax includes the non-cash portion of the an
Slide 9: Group Core NPAT and Core EPS
GROUP CORE NPAT and CORE EPS For personal use only June Half December Half $171.6m $148.2m $142.7m $132.0m $120.7m $104.8m 81.2¢ 66.8¢ 69.1¢ 60.8¢ 55.3¢ 47.2¢ Jun'11 Jun'12 Jun'13 Dec'11 Dec'12 Dec'13 Core EPS (cents/share) Core NPAT ($m) • Core NPAT up 15.8% to $171.6 million • Core EPS up 17.5% to
Slide 10: Dividend Growth
DIVIDEND GROWTH For personal use only Full-year Dividends Interim Dividend FY 2014 70.5 60.0 41.5 52.0 34.5 29.5 34.0 29.0 22.5 25.5 FY'11 FY'12 FY'13 Dec'13 Interim Dividend (cents/share) Final Dividend (cents/share) • Interim dividend fully franked, up 17.2% on previous corresponding period • Rams
Slide 11: Leverage and Borrowing Capacity
LEVERAGE and BORROWING CAPACITY For personal use only Leverage* Affinity • Low leverage ratio Acquisition $1.4B maintained 6x • Accessed favourable debt 5.1 5x Capio UK markets and executed an Acquisition £193M extension of existing debt Ramsay Santé facilities to July 2017 and 4x 3.7 Acquisition €8
Slide 12: Cash Management
CASH MANAGEMENT For personal use only $m Cash Flow 420 375 330 • Continuing strong and consistent cash flow 285 • Effective working 240 capital management 195 150 Dec'12 Dec'13 Gross Operating Cash Flow EBITDA • High cash conversion rate (more than 100%) 12
Slide 13: Segment Operational and Financial Highlights
For personal use only Segment Operational and Financial Highlights 13
Slide 14: Financial Highlights – Australia and Asia
FINANCIAL HIGHLIGHTS – AUSTRALIA AND ASIA For personal use only 2013 2012 Six Months Ended 31 December Increase $m $m Revenue 1,872.0 1,697.9 10.2% EBITDAR 324.0 288.9 12.2% EBITDA 307.6 274.2 12.2% EBIT 251.2 222.0 13.2% Margins: EBITDAR 17.3% 17.0% 29 bps EBITDA 16.4% 16.1% 28 bps EBIT 13.4% 13.1%
Slide 15: Operational Highlights – Australia and Asia
OPERATIONAL HIGHLIGHTS – AUSTRALIA AND ASIA • Strong revenue and admissions growth in Australia For personal use only • Australian hospitals operating margin (EBITDAR) increased from 19.5% to 19.9% • PHI membership remains strong at 47% of the population • New $133m Joondalup Private and $47m Greens
Slide 16: Operational/Financial Highlights – United Kingdom
OPERATIONAL/FINANCIAL HIGHLIGHTS – UNITED KINGDOM For personal use only 185 180 175 170 165 160 £179.4m £181.7m 155 150 145 140 135 130 125 120 115 110 105 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 £22.1m £23.0m -5 -10 -15 Dec'12 Dec'13 Revenue (£m) EBITDA (£m) • Ramsay’s UK busi
Slide 17: Operational/Financial Highlights – France
OPERATIONAL/FINANCIAL HIGHLIGHTS – FRANCE For personal use only Ramsay Santé 120 €120.3m 95 70 €79.9m 45 20 €12.6m €17.3m -5 Dec'12 Dec'13 Revenue (€m) EBITDAR (€m) • Ramsay Santé performed well with EBITDAR increasing by 37.3% to €17.3 million • On a like for like basis EBITDAR margins increased fr
Slide 18: Growth Strategy Update
For personal use only Growth Strategy Update 18
Slide 19: Delivering on Growth Strategy
DELIVERING ON GROWTH STRATEGY For personal use only Sustainable growth enhanced by focusing on hospitals and taking a prudent approach to acquisitions Brownfield Creation of Public/Private Organic + Capacity + Collaborations + Acquisitions Shareholder Expansion Value Underpinned by Unmet demand
Slide 20: First Half Brownfield Developments
FIRST HALF BROWNFIELD DEVELOPMENTS For personal use only • $70m Brownfield developments approved in first half: – Dudley Private: operating theatres – Lake Macquarie Private: operating theatres – Beleura Private: 30 bed rehabilitation ward – Caboolture Private: day surgery – Pindara Private: rehab u
Slide 21: Integration of New Facilities
INTEGRATION OF NEW FACILITIES For personal use only Strong admissions growth at Ramsay’s newest facilities: • Sunshine Coast University Private Hospital (Qld): opened December 2013 • Joondalup Private Hospital (WA): opened March 2013 • Peel Health Campus (WA): acquired May 2013 • Northside Macarthur
Slide 22: Acquisitions – Expansion in France
ACQUISITIONS – EXPANSION IN FRANCE For personal use only Indication of emerging opportunities in the French Market • Medipsy acquired in Dec 2013 • Leading provider of mental health care in France with 30 hospitals • Clustered in a number of core regions giving them strong local position • Operating
Slide 23: Outlook
For personal use only Outlook 23
Slide 24: Outlook
OUTLOOK For personal use only • Concentrate on improving performance at existing hospitals and enhancing our newly acquired facilities • Actively pursuing further opportunities in new and existing markets • Increasing benefits to flow from our successful capacity expansion programme in Australia giv
Slide 25: Questions?
Questions? Ajuo sn jeuosied 103