PRESS RELEASE

Paris, 29 August 2017

Annual results at the end of June 2017

Strong performance despite a year of further price cuts

  • Annual turnover up 0.3% to EUR 2,234.4 million (down 1.4% on a like-for-like basis) with three fewer business days;
     
  • Group net profit of EUR 57.0 million (compared with a profit of EUR 36.9 million at end June 2016);
     
  • Marginal decrease of EBITDA by 1.4% to EUR 265.9 million (down 3.5% on a like-for-like basis) with the margin rate remaining broadly stable;
     
  • Successful integration of HPM, disposal of a number of non-strategic assets and a high level of investment maintained as part of the Group's strategic plan to 2020;
     
  • Significant reduction in net financial debt, amounting to EUR 964.0 million at the end of June 2017 (compared with EUR 1,047.0 million at end June 2016).

According to Pascal Roché, Group Chief Executive Officer:

" Against a backdrop of sharp price cuts, we managed to maintain our profit margin, reduce our debt and invest for the future. We are reaping the benefits of the implementation of our strategic plan: a slight increase in the number of patients (despite an unfavourable calendar), ongoing reorganisations, opening of new hospitals and digitisation of the treatment pathway.
However, it is time for the new government to adopt a pricing policy that supports the role of private hospitals in France - a major role that complements that of public hospitals, both for the provision of quality care and investment, and for their social role. "

The Board of Directors, meeting on 28 August, approved the consolidated financial statements for the year ended June 2017. The audit procedures have been completed and the audit report and its annexes are being issued.
The accounts and reports will be made available to the public upon publication of the Company's activity report at the end of October 2017.

In millions of euros

from 1 July 2016
 to 30 June 2017
Change from 1 July 2015
 to 30 June 2016
Turnover 2 234.4 +0.3% 2 226.9
EBITDA 265.9 -1.4% 269.8
Current operating profit 132.5 -4.7% 139.0

As a % of turnover

5.9%-0.3 points6.2%

Operating profit

138.6 +21.2% 114.4
Net profit attributable to the Group 57.0 +54.5% 36.9

Net earnings per share (in euros)

0.75 +53.1% 0.49

In millions of euros -

from 1 July 2016 to 30 June 2017 from 1 July 2015 to 30 June 2016Change
Ile de France 927.9 934.4 -0.7%
Auvergne Rhône Alpes 340.3 342.5 -0.6%
Nord - Pas de Calais - Picardie 358.9 299.1 +20.0%
Provence Alpes Côte d'Azur 165.0 169.1 -2.4%
Bourgogne Franche Comté 106.5 110.0 -3.2%
Other regions 311.0 314.1 -1.0%
Other activities 24.8 57.7 -57.0%
Published turnover 2 234.4 2 226.9 +0.3%

Of which:   - Organic

2 161.3 2 192.3 -1.4%

                    Of which organic within France

2 137.82 169.0-1.4%

                    Of which organic within Italy

23.523.30.9%

                  - Changes in scope of consolidation

73.1 34.6+111.3

Operations and turnover:

The Group's consolidated turnover for the period ending 30 June 2017 was EUR 2,234.4 million, compared with EUR 2,226.9 million for the period 1 July 2015 to 30 June 2016. The increase of 0.3% was due to the inclusion in scope of the entities of the former HPM Group as of 1 January 2016, but it was also impacted by disposals of non-strategic assets made during the year.

On a like-for-like basis, turnover decreased by 1.4%.

At the end of June 2017, total activity (excluding emergencies) increased by 0.9% in volume terms. The breakdown by business segment is as follows:

·           +0.3% in Medicine-Surgery-Obstetrics

·           +1.8% sub-acute care and rehabilitation

·           +5.0% in mental health

·           Medicine-Surgery-Obstetrics (MSO) activity by hospitals within the same scope was down by 0.7% compared with the same period in 2015-2016 (with three fewer working days).

 

With regard to the public service tasks managed by the group, the number of emergencies increased strongly, up 7.1% over the past year with 551,000 cases registered by the emergency services of our facilities.

Results:

Gross operating surplus for the year was EUR 265.9 million, down 1.4% on a reported basis. At constant scope and accounting methods, EBITDA was down 3.5% over the period. The EBITDA margin, relative to turnover, remained stable at around 12%.

Operating profit for the period 1 July 2016 to 30 June 2017 reached EUR 132.5 million (or 5.9% of sales), down 4.7% from EUR 139.0 million recorded for the period 1 July 2015 to 30 June 2016.

Other non-current income and expenses represents a net income of EUR 6.1 million for the period, mainly comprising costs of EUR 1.7 million related to mergers and restructuring, and income of EUR 7.8 million related to the management of the Group's property and financial assets. From 1 July 2015 to 30 June 2016, the amount of other non-current income and expenses represented a net expense of EUR 24.6 million.

At 30 June 2017, the net cost of borrowing amounted to EUR 39.8 million, compared with EUR 42.9 million the previous year. This consists mainly of interest on senior debt.

In total, Ramsay Générale de Santé recorded a net profit of EUR 57.0 million at end June 2017, compared with EUR 36.9 million for the period from 1 July 2015 to 30 June 2016.

Debt:

Net financial debt at 30 June 2017 fell sharply to EUR 964.0 million compared with EUR 1,047.0 million at 30 June 2016, mainly due to the disposal of non-strategic assets and the assignment without recourse of its CICE for 2016.

As at 30 June 2017, the debt included in particular EUR 1,099.8 million in non-current borrowings and financial debt, EUR 53.4 million in current financial debt, and EUR 180.8 million in cash.

The detail of total exposure to interest rate risk of the financial debt (excluding interest rate hedging instruments) is as follows:

 

·           17.3% of the financial debt is tied to fixed rates;

·           82.7% of the financial debt is tied to floating rates;

Taking the interest rate hedging using swaps, the position with regard to interest rate risk is completely reversed, with:

·           91.5% of financial debt at a fixed rate; and

·           8.5% at a floating rate.

Ramsay Générale de Santé SA is listed on the Eurolist of Euronext Paris and is included in the Midcac index. Ramsay Générale de Santé is the leading Group in the private healthcare sector in France with 23,000 employees in 121 private clinics. The Group works with 6,000 practitioners, forming the leading independent medical community in France. A major player in hospitalisation, Ramsay Générale de Santé provides a comprehensive range of patient care services in three business segments: Medicine-Surgery-Obstetrics, sub-acute care and rehabilitation, and mental health.  Ramsay Générale de Santé has developed a unique healthcare service, built around the quality and security of patient care and organisational efficiency. The Group takes a comprehensive approach to patient care, including personalised assistance and support before, during and after hospitalisation. Générale de Santé also participates in public service missions in its sector and helps to strengthen France's mainland healthcare network.

ISIN and Euronext Paris code: FR0000044471

Website: www.ramsaygds.com

Investor & Analyst Relations                                                      Press Relations
Arnaud Jeudy                                                                         Caroline Desaegher
Tel. + 33 (0)1 53 23 14 75                                                         Tél. +33 (0)1 53 23 12 62
a.jeudy@ramsaygds.fr                                                            c.desaeher@ramsaygds.fr

A conference call in English will be held today

at 7.30 p.m. (Paris time) - Dial-in at the following numbers

In France:                                +33 (0)1 76 77 22 61
In the UK:                                +44 (0)330 336 6025
In Australia:                            +61 (0)2 8524 5352

Access code: 465602

Glossary

Constant scope of consolidation

  • The restatement of the scope of consolidation for incoming entities is as follows:
    • Entities entering the scope of consolidation in the current year must have the contribution from the acquired entity deducted from the performance indicators in the current year;
    • Entities entering the scope of consolidation in the previous year must have the contribution from the acquired entity deducted from the performance indicators of the previous month in the month of the acquisition.
  • The restatement of the scope of consolidation for outgoing entities is as follows:
    • For entities leaving the scope of consolidation in the current year, the contribution of the outgoing entity must be deducted in the previous year from the performance indicators as of the month that the entity leaves the scope of consolidation.
    • For entities leaving the scope of consolidation in the previous year, the contribution of the ongoing entity must be deducted for the full previous period.

Current operating profit is the operating profit before other non-current income or expenses, consisting of restructuring costs (expenses and provisions), gains or losses from disposal, or significant and non-recurring depreciation or amortisation of non-current assets, whether tangible or intangible; also, other operating expenses and income such as provisions relating to major litigation.

Gross operating surplus is the current operating profit before depreciation and amortisation (charges and provisions in the profit and loss account are grouped according to their nature).

Net financial debt consists of gross financial debt less net cash.

  • Gross financial debt consists of:
    • bank loans, including incurred interest;
    • loans relating to finance leases including incurred interest;
    • fair value hedging instruments recognised in the balance sheet net of tax;
    • current receivables and financial debt in relation to current financial accounts with minority investors;
    • treasury shares held by the Group (considered as marketable securities).
       
  • Net cash consists of:
    • cash and cash equivalents;
    • bank overdrafts.

Overview of annual financial results as at 30 June 2017

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(in millions of euros) from 1 January 2015 to 30 June 2015 from 1 July 2015 to 30 June 2016 from 1 July 2016 to 30 June 2017
TURNOVER 893.3 2 226.9 2 234.4
Staff costs and employee profit-sharing (378.2) (959.3) (967.8)
Purchases used (179.0) (449.2) (445.0)
Other operating income and expenses (109.6) (280.3) (278.3)
Taxes and charges (38.2) (92.6) (95.0)
Rents (72.6) (175.7) (182.4)
Gross operating surplus 115.7 269.8 265.9
Depreciation and amortisation (54.0) (130.8) (133.4)
Current operating profit 61.7 139.0 132.5
Restructuring costs (13.4) (5.0) (1.7)
Profit from the management of property and financial assets -- 1.5 7.8
Impairment losses on goodwill -- (21.1) --
Other non-current income and expenses (13.4) (24.6) 6.1
Operating profit 48.3 114.4 138.6
Cost of gross financial debt (19.0) (43.5) (40.4)
Income from cash and cash equivalents 0.8 0.6 0.6
Cost of net financial debt (18.2) (42.9) (39.8)
Other financial income 0.2 0.1 0.4
Other financial expenses (3.9) (4.5) (5.3)
Other financial income and expenses (3.7) (4.4) (4.9)
Income tax (17.5) (24.9) (29.0)
Amount attributable to associates -- -- --
CONSOLIDATED NET PROFIT 8.9 42.2 64.9
Income and expenses recognised directly in equity      
- Actuarial gains and losses on obligations for retirement bonuses 1.7 (2.0) (2.0)
- Change in fair value of hedging instruments 4.1 (20.4) 8.8
- Translation differences -- -- --
- Tax effect of income and expenses (2.2) 7.7 (3.2)
Profit recognised directly in equity 3.6 (14.7) 3.6
COMPREHENSIVE INCOME 12.5 27.5 68.5
BREAKDOWN OF NET PROFIT (in millions of euros) from 1 January 2015 to 30 June 2015 from 1 July 2015 to 30 June 2016 from 1 July 2016 to 30 June 2017
- Net profit attributable to the Group 4.9 36.9 57.0
- Non-controlling interests 4.0 5.3 7.9
NET PROFIT (LOSS) 8.9 42.2 64.9
BASIC EARNINGS PER SHARE (in euros) 0.09 0.49 0.75
DILUTED EARNINGS PER SHARE (in euros) 0.09 0.49 0.75
BREAKDOWN OF COMPREHENSIVE INCOME (in millions of euros) from 1 January 2015 to 30 June 2015 from 1 July 2015 to 30 June 2016 from 1 July 2016 to 30 June 2017
- Comprehensive income attributable to the Group 8.5 22.2 60.6
- Non-controlling interests 4.0 5.3 7.9
COMPREHENSIVE INCOME 12.5 27.5 68.5

CONSOLIDATED BALANCE SHEET (ASSETS)
(in millions of euros) 30-06-2015 30-06-2016 30-06-2017
Goodwill 512.0 741.2 727.1
Other intangible assets 15.8 27.3 23.1
Property, plant and equipment 661.8 921.9 877.9
Investments in associates 0.3 0.6 0.5
Other non-current financial assets 32.0 50.7 49.6
Deferred tax assets 37.4 46.5 33.3
NON-CURRENT ASSETS 1 259.3 1 788.2 1 711.5
Inventories 41.8 54.7 62.3
Trade and other operating receivables 120.9 175.6 158.3
Other current assets 168.1 206.8 224.8
Current tax assets 2.3 14.4 6.0
Current financial assets 2.2 1.3 2.0
Cash and cash equivalents 120.1 112.8 180.8
Assets classified as held for sale 2.0 -- --
CURRENT ASSETS 457.4 565.6 634.2
TOTAL ASSETS 1 716.7 2 353.8 2 345.7

CONSOLIDATED BALANCE SHEET (LIABILITIES)
(in millions of euros) 30-06-2015 30-06-2016 30-06-2017
Share capital 42.3 56.9 56.9
Share premium 4.2 71.2 71.2
Consolidated reserves 243.2 236.4 276.9
Net profit attributable to the Group 4.9 36.9 57.0
Equity attributable to the Group 294.6 401.4 462.0
Non-controlling interests 13.5 36.4 40.0
TOTAL EQUITY 308.1 437.8 502.0
Borrowings and financial debt 806.9 1 110.0 1 099.8
Provisions for retirement and other employee benefits 32.1 47.4 50.6
Non-current provisions 24.6 26.2 27.0
Other non-current liabilities 1.5 23.2 13.4
Deferred tax liabilities 61.6 81.0 58.3
NON-CURRENT LIABILITIES 926.7 1 287.8 1 249.1
Current provisions 13.5 14.8 12.9
Suppliers 169.7 200.7 186.4
Other current liabilities 246.3 340.0 327.0
Current tax liabilities 4.5 17.9 14.9
Current financial debt 47.9 54.8 53.4
Bank overdrafts --- --- ---
Liabilities related to assets held for sale --- --- ---
CURRENT LIABILITIES 481.9 628.2 594.6
TOTAL LIABILITIES 1 716.7 2 353.8 2 345.7

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(in millions of euros) CAPITAL SHARE PREMIUM RESERVES PROFIT (LOSS)

RECOGNISED
DIRECTLY IN EQUITY
TOTAL COMPREHEN-SIVE INCOME FOR THE YEAR EQUITY ATTRIBU-TABLE TO THE GROUP NON-CONTROL-LING INTERESTS EQUITY
Equity at 31 December 2014 42.3 4.2 223.7 (3.8) 19.7 286.1 11.7 297.8
Capital increase (including costs net of tax) -- -- -- -- -- -- -- --
Treasury shares -- -- -- -- -- -- -- --
Stock options and bonus shares -- -- -- -- -- -- -- --
Appropriation of profit N-1 -- -- 19.7 -- (19.7) -- -- --
Distribution of dividends -- -- -- -- -- -- (2.2) (2.2)
Changes in the scope of consolidation -- -- -- -- -- -- -- --
Total comprehensive income for the year -- -- -- 3.6 4.9 8.5 4.0 12.5
Equity at 30 June 2015 42.3 4.2 243.4 (0.2) 4.9 294.6 13.5 308.1
Capital increase (including costs net of tax) 14.6 67.0 -- -- -- 81.6 -- 81.6
Treasury shares -- -- -- -- -- -- -- --
Stock options and bonus shares -- -- -- -- -- -- -- --
Appropriation of profit N-1 -- -- 4.9 -- (4.9) -- -- --
Distribution of dividends -- -- -- -- -- -- (2.9) (2.9)
Changes in the scope of consolidation -- -- 3.0 -- -- 3.0 20.5 23.5
Total comprehensive income for the year -- -- -- (14.7) 36.9 22.2 5.3 27.5
Equity at 30 June 2016 56.9 71.2 251.3 (14.9) 36.9 401.4 36.4 437.8
Capital increase (including costs net of tax) -- -- -- -- -- -- -- --
Treasury shares -- -- -- -- -- -- -- --
Stock options and bonus shares -- -- -- -- -- -- -- --
Appropriation of profit N-1 -- -- 36.9 -- (36.9) -- -- --
Distribution of dividends -- -- -- -- -- -- (4.8) (4.8)
Changes in the scope of consolidation -- --   -- -- -- 0.5 0.5
Total comprehensive income for the year -- -- -- 3.6 57.0 60.6 7.9 68.5
Equity at 30 June 2017 56.9 71.2 288.2 (11.3) 57.0 462.0 40.0 502.0
                 
  30-06-2015 30-06-2016 30-06-2017          
Dividends per share (in euros, including tax)                
Number of treasury shares 25 301 25 301 25 301          

Statement of income and expenses recognised directly in equity
(in millions of euros) 30-06-2015 Income and expenses from 1 July 2015 to 30 June 2016 30-06-2016 Income and expenses from 1 July 2016 to 30 June 2017 30-06-2017
Translation differences (0.3) -- (0.3) -- (0.3)
Actuarial gains and losses on pension obligations (2.4) (1.3) (3.7) (1.2) (4.9)
Fair value of hedging instruments 2.5 (13.4) (10.9) 4.8 (6.1)
Income and expenses recognised directly in equity (0.2) (14.7) (14.9) 3.6 (11.3)
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions of euros) from 1 January 2015 to 30 June 2015 from 1 July 2015 to 30 June 2016 from 1 July 2016 to 30 June 2017
Consolidated net profit 8.9 42.2 64.9
Depreciation and amortisation 54.0 130.8 133.4
Other non-current income and expenses 13.4 24.6 (6.1)
Amount attributable to associates --- --- ---
Other financial income and expenses 3.7 4.4 4.9
Cost of net financial debt 18.2 42.9 39.8
Income tax 17.5 24.9 29.0
Gross operating surplus 115.7 269.8 265.9
Non-cash items relating to recognition and reversal of provisions (transactions of a non-cash nature) 1.6 (1.2) 0.3
Other non-current income and expenses paid (9.7) (7.3) (9.8)
Change in other non-current assets and liabilities (5.8) 19.7 (2.0)
Cash flow from operations before cost of net financial debt and tax 101.8 281.0 254.4
Income tax paid (13.7) (18.1) (23.5)
Change in working capital requirement (0.9) (66.9) (21.5)
NET CASH FLOWS FROM OPERATING ACTIVITIES: (A) 87.2 196.0 209.4
Investments in tangible and intangible assets (35.8) (109.0) (102.2)
Disposals of tangible and intangible assets --- 1.0 27.9
Acquisition of entities --- (112.0) 0.3
Disposal of entities --- 1.6 14.8
Dividends received from non-consolidated companies 0.2 0.1 0.4
NET CASH FLOWS FROM INVESTING ACTIVITIES:  (B) (35.6) (218.3) (58.8)
Capital increase: (a) --- --- ---
Capital increase at subsidiaries subscribed by third parties (b) --- --- ---
Extraordinary distribution of share premium: (c) --- --- ---
Dividends paid to GDS shareholders: (d) --- --- ---
Dividends paid to non-controlling interests of consolidated companies: (e) (2.2) (2.9) (4.8)
Net interest expense paid: (f) (19.4) (42.9) (39.8)
Loan issue costs: (g) --- --- ---
Cash flows before debt: (h) = (A+B+a+b+c+d+e+f+g) 30.0 (68.1) 106.0
Increase in financial debt: (i) 5.6 329.1 41.6
Repayment of financial debt: (j) (16.5) (268.3) (79.6)
NET CASH FLOWS FROM FINANCING ACTIVITIES: (C) = a + b + c + d + e + f + g + i + j (32.5) 15.0 (82.6)
CHANGE IN NET CASH: ( A + B + C ) 19.1 (7.3) 68.0
Cash at beginning of period 101.0 120.1 112.8
Cash at end of period 120.1 112.8 180.8
Net debt at beginning of period 758.1 729.3 1 047.0
Cash flows before debt: (h) (30.0) 68.1 (106.0)
Capitalised finance leases 6.5 16.9 34.7
Capitalised loan issue costs (new) 2.2 4.3 4.3
Goods held for sale (4.9) (2.0) --
Fair value of hedging instruments (2.5) 13.6 (5.0)
Changes in the scope of consolidation and other (0.1) 216.8 (11.0)
Net debt at end of period 729.3 1 047.0 964.0
RGDS : annual Results at the end of June 2017



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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: RAMSAY GENERALE DE SANTE via Globenewswire