RAMSAY HEALTH CARE LIMITED

ABN: 57 001 288 768

ASX: FY21 HALF YEAR RESULT

6 MONTHS TO 31 DECEMBER 2020

Ramsay Health Care Ltd

Appendix 4D and Operating and Financial Review

6 months ended 31st December 2020

Table of Contents

1.

Appendix 4D - Key Matters .............................................................................. 3

  • 2. Who We Are .................................................................................................... 4

3.

Group Performance .......................................................................................... 5

4. Divisional Performance .................................................................................. 11

  • 5. Directors Report ............................................................................................. 19

  • 6. Financial report .............................................................................................. 21

1. Appendix 4D - Key Matters

Results for Announcement to the Market

Six months Ended 31 December $'m

2020

2019

Chg (%)

Total revenue and other income

6,608.8

6,347.3

4.1

Earnings before finance costs, tax, depreciation, amortisation and rent (EBITDAR)

1,110.0

1,128.6

(1.7)

Earnings before finance costs, tax, depreciation, amortisation (EBITDA)

1,039.0

1,048.2

(0.9)

Earnings before finance costs and tax (EBIT)

583.8

609.5

(4.2)

Net Profit after tax attributable to owners of the parent

226.0

258.4

(12.5)

Revenue from patients and other revenue

5,916.6

6,332.5

(6.6)

Share of profit from Ramsay Sime Darby joint venture

9.7

12.5

(22.4)

Financing costs associated with leases (AASB16)

(117.5)

(112.9)

(4.1)

Financing Costs

(67.9)

(84.3)

19.5

Income Tax Expense

(132.8)

(148.9)

10.8

Net Profit after tax

265.6

263.4

0.8

Minority interests attributable to non-controlling interests

(39.6)

(5.0)

(692)

Convertible Adjustable Rate Equities (CARES) dividend per share ($)

1.73¹

2.04

(29.1)

Franking CARES (%)

100

100

n/a

Interim ordinary dividend per share (¢)

48.5²

62.5

(22.4)

Franking ordinary dividend (%)

100

100

n/a

Basic Earnings per share (after CARES dividend) (¢)³

97.2

123.4

(21.2)

Fully diluted earnings per share (after CARES dividend) (¢)³

96.9

122.8

(21.1)

Weighted average number of ordinary shares (m)

227.8

204.5

11.4

Fully diluted weighted average number of shares (m)

228.3

205.5

11.1

1. Record date for 1HFY21 is 29 March 2021 Payment date 20 April 2021

2 Record date for 1HFY21 is 9 March 2021 Payment date is 31 March 2021

3 The denominator for the purpose of calculating both basic and diluted earnings per share in December 2019 has been adjusted to reflect the $1.5bn equity raise in the second half of FY20, at less than market value

  • Revenue from patients declined 6.6% on the prior corresponding period (pcp) reflecting capacity restrictions under the various government contractual arrangements

  • Total revenue increased 4.1% on the pcp and includes government payments for the use of Ramsay facilities to assist with further outbreaks of the COVID-19 virus

  • EBITDAR declined 1.7% on the pcp inclusive of the increased costs associated with operating in the COVID-19 environment and impacted by case mix changes flowing from the pandemic

  • EBITDAR includes an increase in the contribution from the disposal of assets and investments of $44m compared to the pcp. The European region disposed of two facilities in France and nine facilities in Germany combined with the disposal of development assets in Australia

  • Free cashflow increased 159.3% and includes a timing benefit received by the European business under the French Government compensation arrangements. This benefit is expected to reverse in 2HFY21

  • Ramsay continued to invest in and optimise its facilities and footprint. Capital expenditure for the period was $352m across the regions

  • Financing costs declined 19.5% reflecting lower average net debt and lower interest rates

  • Strong balance sheet at the end of the period. Consolidated Group leverage (AASB16) declined to 3.4x and leverage under Ramsay's wholly owned funding group declined to 1x

  • Resumption of dividend payments with a fully franked interim dividend of 48.5cps declared representing a payout ratio of 50% of statutory profit

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Ramsay Health Care Limited published this content on 25 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2021 21:54:04 UTC.