Ramsay Health Care Limited · ASX:RHC

Ramsay Health Care — FY2011 Earnings Presentation

19 slides from Ramsay Health Care's earnings presentation, Aug 25, 2011

  1. Slide 1: Financial Results Year ended 30 June 2011

    For personal use only Briefing – 25 August 2011 Financial Results Year ended 30 June 2011 Christopher Rex, Managing Director

  2. Slide 2: Agenda

    AGENDA For personal use only ƒ Ramsay Health Care - Overview ƒ Full-year Highlights ƒ Operational Highlights ƒ Group Financial Performance ƒ Capital Management ƒ Growth Strategy ƒ Brownfield Developments ƒ Outlook 2

  3. Slide 3: Ramsay Health Care – Overview

    RAMSAY HEALTH CARE – OVERVIEW For personal use only ƒ Australia’s largest private hospital operator and growing global company ƒ 117 hospitals and facilities across three continents; in the order of 10,000 beds ƒ Over 30,000 staff: 22,000+ in Australia including 13,500 nursing staff, 650 doctors ƒ 1

  4. Slide 4: Full-Year Highlights

    FULL-YEAR HIGHLIGHTS For personal use only ƒ Core NPAT(1) up 23.6% to $220.6 million ƒ Core EPS(2) up 19.6% to 101.1 cents ƒ Group revenue up 9.4% to $3.7 billion − Australia and Indonesia revenue up 8.7% to $2.9 billion − Europe (3) revenue up 12.4% to $767.1 million ƒ Group EBIT up 18.5% to $395.5

  5. Slide 5: Operational Highlights

    OPERATIONAL HIGHLIGHTS For personal use only ƒ Australian business continues to grow strongly ƒ Operating leverage driving margin growth across the Group ƒ Completed brownfield developments adding to EBIT and EPS ƒ Cash conversion rate above 100% ƒ Successful bidder for private hospital on Sunshine

  6. Slide 6: Group Financial Performance

    GROUP FINANCIAL PERFORMANCE For personal use only YEAR ENDED 30 JUNE FY11 FY10 % $m $m Increase Australia/ Europe Group Group(1) Indonesia Operating Revenue 2,952.6 767.1 3,719.7 3,399.3 9.4% EBITDA 421.7 104.6 526.3 468.8 12.3% EBIT 322.9 72.6 395.5 333.8 18.5% Core NPAT (2) 220.6 178.5 23.6% Core

  7. Slide 7: Reconciliation to Reported Profit

    RECONCILIATION TO REPORTED PROFIT For personal use only YEAR ENDED 30 JUNE FY11 FY10 % $m $m Increase Core NPAT 220.6 178.5 23.6% Specific items & amortisation of intangibles (net of tax) (1) (22.2) (30.2) Reported NPAT 198.4 148.3 33.8% FY11 FY10 (1) Specific items & amortisation of intangibles (ne

  8. Slide 8: Group Core NPAT and Core EPS

    GROUP CORE NPAT AND CORE EPS For personal use only CAGR = 21.5% CAGR = 18.5% ƒ Group Core NPAT and Group Core EPS in line with guidance ƒ Core NPAT up 23.6% to $220.6 million ƒ Core EPS up 19.6% to 101.1 cents 8

  9. Slide 9: FY11 Dividend Growth (Fully Franked)

    FY11 DIVIDEND GROWTH (FULLY FRANKED) For personal use only CAGR = 17.0% ƒ Final dividend up 18.0% to 29.5 cents ƒ Dividends for the full year up 19.5%, reflecting growth in EPS of 19.6% ƒ Dividend payout ratio of approximately 50% of Core EPS maintained 9

  10. Slide 10: Group EBITDA Growth

    GROUP EBITDA GROWTH For personal use only CAGR = 15.4% ƒ Group EBITDA up 12.3% for the year ƒ Group EBITDA margin at 14.2%, up from 13.8% 10

  11. Slide 11: Financial Performance – Australian Hospitals

    FINANCIAL PERFORMANCE – AUSTRALIAN HOSPITALS For personal use only YEAR ENDED 30 JUNE 2011 2010 % $m $m Increase Operating Revenue 2,474.4 2,279.6 8.5% EBITDA 477.0 417.2 14.3% EBIT 393.0 340.3 15.5% EBITDA Margin 19.3% 18.3% 97.4 bps EBIT Margin 15.9% 14.9% 95.4 bps All numbers exclude prostheses a

  12. Slide 12: Operating Environment - Australia

    OPERATING ENVIRONMENT- AUSTRALIA For personal use only Operating environment in Australia continues to be positive ƒ Private hospital sector is a major and integral part of the Australian health care system ƒ Treats more than 40% of all patients who go to hospital each year ƒ Provides 99.5% of proce

  13. Slide 13: Financial Performance – Europe

    FINANCIAL PERFORMANCE – EUROPE For personal use only YEAR ENDED 30 JUNE UK FRANCE (1) 2011 2010 Increase/ 2011 £m £m (decrease) €m Operating 353.1 350.2 0.8% 144.6 Revenue EBITDAR 89.8 90.7 (0.9%) 26.1 EBITDAR Margin 25.4% 25.9% (45.2 bps) 18.1% UK ƒ Margins holding up well post normalised ISTC pric

  14. Slide 14: Capital Management

    CAPITAL MANAGEMENT For personal use only Debt Profile Affinity ƒ Committed senior bank debt Acquisition $1.4B facilities of $1.9B in place until November 2012 ƒ Debt refinancing discussions commenced with a view to complete well ahead of scheduled maturity Ramsay Santé Acquisition ƒ Headroom of $500

  15. Slide 15: Capital Management

    CAPITAL MANAGEMENT For personal use only ƒ Effective working capital management ƒ High cash conversion rate – more than 100% 15

  16. Slide 16: Successful & Sustainable Growth Strategy

    SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY For personal use only Key elements of growth ƒ Organic – Underpinned by demographics, quality portfolio of hospitals, ongoing business improvement ƒ Brownfield investment – Unmet demand driving Ramsay’s ongoing investment in capacity expansion ƒ Public/Privat

  17. Slide 17: Brownfield Developments

    BROWNFIELD DEVELOPMENTS For personal use only ƒ Approximately $830M (gross) approved for Australian brownfield projects since 2007 of which $480m (gross) has been spent on completed projects ƒ Key projects completed in FY11 include: – Pindara (Gold Coast) – North West (Brisbane) – Westmead Private (

  18. Slide 18: Outlook

    OUTLOOK For personal use only ƒ Rising demand for health care driving substantial ongoing investment in brownfield projects ƒ Completed brownfield projects adding to earnings at EBIT and EPS level ƒ Economic conditions in the UK and France remain challenging but health care sector remains stable wit

  19. Slide 19: Questions

    For personal use only QUESTIONS

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