Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2010 Earnings Presentation
20 slides from Ramsay Health Care's earnings presentation, Feb 25, 2010
Slide 1: Financial Results Half Year ended 31 December 2009
For personal use only Briefing – 25 February 2010 Financial Results Half Year ended 31 December 2009 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only • Half-year overview • Group financial performance • Financial performance – Australia & Indonesia, UK • Operating environment – Australia & UK • Brownfields progress • French acquisition – Proclif overview • Capital management • Outlook 2
Slide 3: Half-Year Overview
HALF-YEAR OVERVIEW For personal use only Strong rise in Group core net profit, reflects underlying strength of the business • Core net profit after tax up 32.7% to $91.1 million • Core EPS up 32% to 44.6 cents • Australia and Indonesia revenue up 7.6% to $1.4 billion • UK revenue up 12% to £171.6 mi
Slide 4: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only HALF-YEAR ENDED 31 DECEMBER 2009 2008 % $m $m Increase Australia/ Continuing Operations UK Group Group Indonesia Operating Revenue 1,360.3 322.6 1,682.9 1,607.7 4.7% EBITDAR (1) 203.8 82.1 285.9 256.9 11.3% EBITDA 190.9 44.4 235.3 200.8 17.2% EBIT 14
Slide 5: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only HALF-YEAR ENDED 31 DECEMBER 2009 2008 % $m $m Increase Core NPAT – continuing operations 91.1 68.7 32.7% Specific items & amortisation of intangibles (net of tax) (12.5) (14.9) Reported Net Profit after Tax 78.6 53.8 46.2% 2009 2008 Specific it
Slide 6: Group Core NPAT and Core EPS
GROUP CORE NPAT AND CORE EPS For personal use only June Half December Half 32.7% 32.0% • Core NPAT up 32.7% to $91.1 million • Core EPS up 32% to 44.6 cents 6
Slide 7: Dividend Growth
DIVIDEND GROWTH For personal use only Final Dividend Interim Dividend 12.1% • Interim dividend up 12.1%, tracking full-year guidance for Core EPS growth of 10%-12% • Capacity to grow dividends highlights the resilience of our business 7
Slide 8: Financial Performance – Australia/Indonesia
FINANCIAL PERFORMANCE – AUSTRALIA/INDONESIA For personal use only HALF-YEAR ENDED 31 DECEMBER 2009 2008 % $m $m Increase Operating Revenue 1,360.3 1,264.0 7.6% EBITDAR 203.8 183.8 10.9% EBITDA 190.9 171.4 11.4% EBIT 149.3 134.1 11.4% • Australia and Indonesia, the Group’s historical base operations,
Slide 9: Financial Performance – UK
FINANCIAL PERFORMANCE – UK For personal use only HALF-YEAR ENDED 31 DECEMBER 2009 2008 % £m £m Increase Operating Revenue 171.6 153.2 12.0% EBITDAR 43.8 32.9 33.0% EBITDA 23.7 13.3 78.0% EBIT 11.8 6.3 87.9% 2009 2008 % $m $m Increase EBIT ($A) 22.3 13.7 63.3% • Operating revenue up 12% to £171.6 mil
Slide 10: Operating Environment – Australia
OPERATING ENVIRONMENT – AUSTRALIA For personal use only • Stable and robust operating environment • the 2010 intergenerational report confirms strong growth in future demand for health care – Population growth – Ageing population – Rising demand for higher quality care – Higher incidence of chronic
Slide 11: Operating Environment - UK
OPERATING ENVIRONMENT - UK For personal use only • UK economy starting to show positive signs • Potential for PMI and self pay volumes to recover • Pressure on public spending going forward including NHS • Support for competitive market for NHS services • Opportunities emerging for increased private
Slide 12: Brownfields Progress - Australia
BROWNFIELDS PROGRESS - AUSTRALIA For personal use only • Ramsay has spent approximately $380 million of the $675 million (gross) approved for expansion projects in Australia • Net investment to be $590 million after the sale of medical suites over FY09-FY11 • Including the Hollywood redevelopment, e
Slide 13: Proclif Acquisition Details
PROCLIF ACQUISITION DETAILS For personal use only • Acquisition of 57% interest in Proclif, the second largest private hospital group in the Paris region, for €87m ($142m) – Implied enterprise value of €172m ($281m), 9.1x estimated CY09 EBITDA and 8.1x forecast CY10 EBITDA – Remaining 43% interest h
Slide 14: The French Hospital Sector
THE FRENCH HOSPITAL SECTOR For personal use only The French acute care market is an attractive sector with strong fundamentals • Free choice and universal cover whether care is provided in private or public Stable and hospitals popular system • Integrated public and private systems • Underpinned by
Slide 15: Why Proclif?
WHY PROCLIF? The acquisition of Proclif is a key enabler to Ramsay’s French For personal use only expansion strategy and establishes a solid platform for future growth • Second largest private hospital operator in the greater Paris region Well- • Nine specialist hospitals benefiting from significant
Slide 16: Proclif Hospitals
PROCLIF HOSPITALS For personal use only Nine hospitals, 978 beds in greater Paris region (Île-de-France) Clinique Lambert CMC Val Notre Dame 127 beds Bezons Asnieres 83 beds 57 beds Clinique de la Montagne 80 beds Clinique de la Muette 83 beds Clinique des Franciscaines 145 beds CMCO Evry (Mousseau)
Slide 17: Capital Management
CAPITAL MANAGEMENT For personal use only Affinity Debt profile Acquisition • Committed senior bank debt facilities of ~ $1.9 billion in Capio place until November 2012 Acquisition • Headroom of $500-$600 million after allowing for Proclif Proclif acquisition and funding of Acquisition current brownf
Slide 18: Strong Growth Strategy
STRONG GROWTH STRATEGY For personal use only • Continuing our strategy to become a major global hospital provider • Three main drivers of growth – Organic – Brownfield investment – Further offshore acquisitions • France • Other markets • Prudent approach, with acquisitions in new markets only pursue
Slide 19: Outlook
OUTLOOK For personal use only • Underlying business in excellent shape and continues to grow strongly • Proclif acquisition marks first major step into dynamic French market • UK business fully integrated and performing strongly • Australian/Indonesian business continues to grow, underpinned by favo
Slide 20: Questions
For personal use only Questions