Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2018 Earnings Presentation
26 slides from Ramsay Health Care's earnings presentation, Feb 28, 2018
Slide 1: Results Briefing - Half Year ended 31 December 2017
For personal use only Ramsay Health Care Limited Results Briefing Half Year ended 31 December 2017 Craig McNally, Managing Director 28 February 2018 ramsayhealth.com
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 Results Briefing - Half Year ended 31 December 2017
Slide 3: Group Financial & Operational Highlights
For personal use only Group Financial & Operational Highlights 3 Results Briefing - Half Year ended 31 December 2017
Slide 4: Group Half Year Financial Highlights
GROUP HALF YEAR FINANCIAL HIGHLIGHTS For personal use only • Core NPAT up 7.5% to $288.0 million • Core EPS up 7.8% to 139.0 cents • Group: − Revenue up 3.0% to $4.4 billion − EBIT up 1.5% to $470.4 million • Australia/Asia: − Australia Revenue up 4.3% to $2.5 billion − Australia EBIT up 9.1% to $37
Slide 5: Half Year Operational Highlights
HALF YEAR OPERATIONAL HIGHLIGHTS For personal use only Australian • Delivered 9.1% EBIT growth on the previous corresponding period as a result of above market volume operations growth and the ongoing benefits of cost efficiency programmes performed • Government reforms announced in the period, whic
Slide 6: Group Financial Overview
For personal use only Group Financial Overview Bruce Soden, Finance Director 6 Results Briefing - Half Year ended 31 December 2017
Slide 7: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only 2017 2016 Six months ended 31 December Increase $m $m Revenue 4,445.8 4,317.6 3.0% EBITDAR 872.5 841.1 3.7% EBITDA 663.8 648.9 2.3% EBIT 470.4 463.5 1.5% Core NPAT attributable to members of the parent (1) 288.0 267.8 7.5% Core EPS (2) (cents per sha
Slide 8: Reconciliation to Statutory Profit
RECONCILIATION TO STATUTORY PROFIT For personal use only 2017 2016 Increase/ Six months ended 31 December $m $m Decrease Core NPAT 288.0 267.8 7.5% Net Non-core Items net of tax (1) • Restructuring charge RGdS (23.9) - • Other (17.6) (11.9) (41.5) (11.9) Reported Statutory Net Profit after tax attri
Slide 9: Core NPAT and Core EPS
CORE NPAT AND CORE EPS For personal use only June Half December Half • Core NPAT up 7.5% to $288.0 million 288.0 274.9 267.8 • Core EPS up 7.8% to 139.0 244.0 237.4 cents 207.7 132.6 139.0 128.9 117.3 114.1 99.0 Jun'15 Jun'16 Jun'17 Dec'15 Dec'16 Dec'17 Core EPS (cents/share) Core NPAT ($m) 9 Result
Slide 10: Dividend Growth
DIVIDEND GROWTH For personal use only Full-year Dividends Interim Dividend • Strong, consistent growth in FY 2018 dividends 134.5 119.0 • Interim dividend fully franked, up 101.0 8.5% on previous corresponding interim dividend, more than 85.0 81.5 72.0 matching the 7.8% increase 60.5 Core EPS 51.0 •
Slide 11: Leverage and Cash Management
LEVERAGE AND CASH MANAGEMENT For personal use only Consolidated Balance Sheet Leverage Ratio • Strong operating cash flow with high 6x cash conversion rate • Strong balance sheet with financial 5x Capio UK Acquisition flexibility to continue to fund: Ramsay Santé RGdS − the pipeline of brownfield 4x
Slide 12: Segment Operational and Financial Highlights
For personal use only Segment Operational and Financial Highlights 12 Results Briefing - Half Year ended 31 December 2017
Slide 13: Financial Highlights – Australia & Asia
FINANCIAL HIGHLIGHTS – AUSTRALIA & ASIA For personal use only Six Months ended 31 December 2017 2016 Increase $m $m AUSTRALIA (1) Revenue 2,483.9 2,382.2 4.3% EBITDAR 486.4 444.3 9.5% EBITDA 458.5 422.3 8.6% EBIT 379.7 348.1 9.1% (1) The above figures include Head Office EBIT Margin (%) 15.3% 14.6%
Slide 14: Operating Environment - Australia
OPERATING ENVIRONMENT - AUSTRALIA For personal use only Current Operating Environment Reduction in PHI membership but increasing demand in key market demographic – the over 65s Private patients in public hospitals - unsustainable Recent focus on private healthcare and improving value and affordabili
Slide 15: Financial Highlights - France
FINANCIAL HIGHLIGHTS - FRANCE For personal use only Operating Highlights 1,077.8 Revenue down 1.1% to €1.1 billion 1,066.4 EBITDAR down 5.8% to €194.1 million Overall admissions growth, and strong cost management substantially mitigated the negative tariff setting Operational Outlook March 2018 decr
Slide 16: Financial Highlights – United Kingdom
FINANCIAL HIGHLIGHTS – UNITED KINGDOM For personal use only Operating Highlights 216.5 206.2 Revenue down 4.8% to £206.2 million EBITDAR down 4.6% to £49.4 million NHS demand management strategies significantly impacting volumes. Operational Outlook 51.7 49.4 26.5 22.4 Positive tariff adjustment wil
Slide 17: Growth Strategy
For personal use only Growth Strategy 17 Results Briefing - Half Year ended 31 December 2017
Slide 18: Attractive & Diversified Asset Portfolio
ATTRACTIVE & DIVERSIFIED ASSET PORTFOLIO For personal use only 221 14 Healthcare & Hospitals treatment facilities 25,000 1,150 Hospital beds Operating theatres 39 4,000 Emergency Mental health beds departments 54 60,000 Retail Pharmacy franchises (>150 Employees hospital pharmacies) 18 Results Brief
Slide 19: Global Industry Fundamentals
GLOBAL INDUSTRY FUNDAMENTALS For personal use only The number of people aged Globally, the number of people Depression is the leading cause of ill over 65 has increased to with diabetes is expected to rise health and disability worldwide. More more than 656 million, or from the current 415 million t
Slide 20: Delivering on Our Growth Strategy
DELIVERING ON OUR GROWTH STRATEGY For personal use only Continuing to create shareholder value through our focused strategy ORGANIC GROWTH BROWNFIELD PUBLIC/PRIVATE ACQUISITIONS INTEGRATED Underpinned by CAPACITY EXPANSION COLLABORATIONS Exploring acquisitions CARE demographics, quality Local market
Slide 21: Developments
DEVELOPMENTS For personal use only During 1H FY18 the Board approved the following capacity expansions and investments: $146M 167 beds 11 operating 23 retail projects theatres pharmacy franchises 21 Results Briefing - Half Year ended 31 December 2017
Slide 22: Brownfield Developments
BROWNFIELD DEVELOPMENTS For personal use only Expansions underway Approved in 1H 2018 - $146M Pipeline • Albert Road Clinic (48 beds) • Beleura Private (46 beds) • $147M due to open 2H FY18 • Northside Clinic at St Leonards • John Flynn (12 day oncology chairs) • $156M due to open 1H FY19 (gross 112
Slide 23: Pharmacy
PHARMACY For personal use only • Ramsay Pharmacy franchise network is expanding – now 54 pharmacies • Slower than expected expansion due to regulatory delays • In December 2017, Ramsay added Queensland’s 18 Malouf pharmacies to its Franchise network. Malouf was the largest privately owned pharmacy g
Slide 24: Outlook
For personal use only Outlook 24 Results Briefing - Half Year ended 31 December 2017
Slide 25: Outlook
Outlook For personal use only • Attractive demographic sector fundamentals combined with Ramsay’s geographic, casemix and reimbursement diversification as well as a consistent execution of Company strategy, will underpin our future growth. • In addition to brownfield development growth, we remain ac
Slide 26: Questions
For personal use only Questions 26 Results Briefing - Half Year ended 31 December 2017