Annual Report 2020
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Ramsay Health Care Limited Annual Report 2020 ARTANIA CRUISE SHIP PASSENGER, JURGEN SCHREYEK, GIVEN GUARD OF HONOUR AT JOONDALUP HEALTH CAMPUS AFTER ‘MIRACLE’ COVID-19 SURVIVAL* www.ramsayhealth.com ANNUAL GENERAL MEETING 2020 The 2020 Annual General Meeting of Ramsay Health Care Limited ABN57001288768 will be held virtually. Full access details are available in Ramsay’s Notice of Meeting. INDICATIVE KEY DATES FOR 2021 RESULTS RELEASE DATES: Interim Results – Thursday, 25 February 2021 at 10.30am Preliminary Final Results – Thursday, 26 August 2021 DIVIDEND PAYMENT DATES – ORDINARY SHARES Interim Dividend Tuesday, 31 March 2021 (Record date 9 March 2021) Final Dividend Thursday, 30 September 2021 (Record date 7 September 2021) DIVIDEND PAYMENT DATES – CARES Tuesday, 20 April 2021 (Record date 29 March 2021) Wednesday, 20 October 2021 (Record date 28 September 2021) ANNUAL GENERAL MEETING 2021 The 2021 Annual General Meeting of Ramsay Health Care Limited is scheduled to be held on Wednesday, 24 November at 10.30am (Sydney time). Full details will be provided closer to the date. FOR MORE INFORMATION To view our interactive Annual Report and for more information on the Company including market announcements and for a copy of the Company’s Corporate Governance Statement, visit the Investor Centre at: www.ramsayhealth.com Contents 2 Global Healthcare Operator 4 A letter to our Shareholders 8 Board of Directors 11 Additional Information 13 Corporate Directory 14 Financial Report *FROM COVER Staff bid fond farewell IMAGE COURTESY OF: ©WESTPIX Jürgen Schreyek — one of the sickest Jürgen and Christina Neither of them can clearly passengers aboard the cruise ship Artania Schreyek are recall arriving at the hospital — won the battle against COVID making experienced cruise as they were in the grips of a miraculous recovery and finally headed passengers and were the virus, but Christina does home to Germany on Monday 25 May. looking forward to a remember being told her Staff were in tears, clapping and cheering on month-long tour that beloved husband needed support Mr Schreyek who was given a guard of honour would encompass Australia of a heart-lung machine. as he was discharged. and New Zealand before Two weeks later both were recovering island-hopping across the South- Mr Schreyek was the final Artania patient in hospital and full of praise for the quality Pacific to Peru, from where the pair intended of care they received at Joondalup Health at Joondalup Health Campus (JHC), having to fly home to Munich. arrived at the hospital on March 30 with his Campus. wife Christina, who made a quicker recovery By the time the Artania arrived in Fremantle “I knew it was severe. With his [Jürgen’s] and flew home several weeks prior. He spent for what was expected to be a short re-supply heart and the lungs and I cried a lot and I was two weeks in ICU and a further six weeks on stop-over, cruise ships had become the hugged and they cried with me. Everyone, no the COVID ward and a rehabilitation ward, hot-potato of the pandemic in Australia. matter who it was, showed me so much love. forming strong bonds with staff at every stage People were increasingly falling ill, Jürgen It’s something that you cannot describe. I will of his journey. was very unwell and required the support of a never forget in my life this,” Christina said. ventilator while still on board. Speaking through a translator — JHC “I write every day to our friends in Germany registered nurse and fellow German Anne Their fate was confirmed when the and yesterday I wrote “you cannot imagine Karow — the 70-year-old said he considered repatriation of as many passengers as how we are treated; I think in Germany not himself incredibly lucky to be able to walk out possible was underway, and their names even Angela Merkel is treated like this.” It’s of the hospital and go home. But he also said were called as people identified as being too really like that, we are happy,” Christina said. it was somewhat heartbreaking because he unwell to fly. now considered some of the staff, including “I already knew, like many others, that Ms Karow, as being like family. I’d been sick somehow – probably with Coronavirus. And when we left the ship, there were two police buses outside…with emergency lights on. They drove us at high speed. I didn’t know what was going on, or where I was going.” Christina watched as her husband lost consciousness during the bus ride to JHC. ANNUAL REPORT 2020 3 Global Healthcare Operator Economies of scale 11 8,500,000+ Countries Patient visits/admissions per annum Speed to market Innovation 519 Locations 77,000+ Employees Best practice Cost leadership Summary of Core Earnings for FY2020# 12 MONTHS TO 30 JUNE 2020* 2019** ($ millions) ($ millions) Revenue $12,395.5 $11,552.8 EBITDAR $2,009.7 $2,161.0 EBITDA $1,843.9 $1,592.1 EBIT $952.3 $1,108.0 Core NPAT attributable to members of the parent $336.9 $590.9 Basic Core earnings per share (after CARES dividend) 156.4c 282.7c Diluted Core earnings per share (after CARES dividend) 155.9c 281.0c ALL NUMBERS ARE IN AUSTRALIAN DOLLARS UNLESS OTHERWISE STATED # CORE EARNINGS ARE THE EARNINGS ATTRIBUTABLE TO MEMBERS OF THE PARENT BEFORE NET NON-CORE ITEMS & FROM CONTINUING OPERATIONS. * RESULTS PREPARED UNDER AASB16 LEASES REFER TO OVERVIEW SECTION OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR FURTHER INFORMATION. ** RESULTS PREPARED UNDER AASB117 LEASES REFER TO OVERVIEW SECTION OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR FURTHER INFORMATION. RESULTS IN 2020 INCLUDE 12 MONTHS OF CAPIO RESULTS. RESULTS IN 2019 INCLUDE CAPIO RESULTS FROM 7 NOVEMBER 2018. Norway Sweden United Denmark Kingdom Germany France Italy Hong Kong Malaysia Indonesia Australia The Ramsay Health Care Global Network Market leading positions: Differentiated portfolio: • NUMBER 1 IN AUSTRALIA • DIVERSIFIED STRATEGIC PORTFOLIO • NUMBER 1 IN SCANDINAVIA • DEEP & EXPERIENCED LEADERSHIP • NUMBER 1 IN FRANCE • INDUSTRY LEADING QUALITY • SCALE A letter to our Shareholders The last four months of FY2020 was one of the most remarkable periods in the history of the Company. With the onset of the COVID-19 pandemic in March 2020, the sustainability of the business and ensuring that we protected the wellbeing of our patients, staff and doctors was overwhelmingly our primary focus. We are extremely proud of our global teams and how they responded to the crisis – delivering for each other and delivering for our patients, all the while strengthening our culture of ‘people caring for people’. Our global business efforts during this crisis. COVID-19 has impacted had been tracking well our financial result this year but, importantly, it has until the end of February reinforced our role as a leading health care and 2020. At our interim hospital provider in our major regions. results we reaffirmed our FY’20 guidance of core The period demonstrated what an incredible, and EPS growth on a like for like resilient, organisation Ramsay Health Care is. We have 1 basis of 2% to 4%. However, accomplished a lot over the period including an equity the extraordinary circumstances raising, and we are well positioned for the long term. posed by the COVID-19 pandemic on the Company’s operations around the world resulted in us withdrawing guidance in March 2020 RESULTS and had a significant impact on the full year result. Ramsay Health Care reported statutory net profit As a result of the pandemic, elective surgery after tax, attributable to members of the parent restrictions were imposed in most regions from (after adjusting for net non-core items after tax) of March 2020 creating a significant level of uncertainty. $284.0 million, a decrease of 47.9% on the previous Ramsay led industry discussions with all levels of corresponding period. On a like for like basis1 this government in our major regions – Australia, UK and France – to make our facilities available to the represented a decrease of 40.0% on the previous respective national efforts, and in return, we were corresponding period. successful in securing agreements with governments Group Core Net Profit After Tax (Core NPAT) of in the form of a viability guarantee. $336.9 million, for the year ended 30 June 2020 Ramsay’s hospitals around the globe played and decreased by 43.0% on the previous corresponding are continuing to play a critical role in supporting period. On a like for like basis1 this represented a governments, caring for patients and our communities decrease of 34.4% on the previous corresponding and ensuring that our facilities are made available and period. Core NPAT delivered Core EPS of 155.9 cents remain fully staffed. We are pleased to report that no Ramsay employees were stood down because of for the year, a decrease of 44.5% on the previous the pandemic. corresponding period. On a like for like basis1 this represented a decrease of 35.9% on the previous This period has been filled with example after example corresponding period. of our hospitals, doctors and staff stepping up to care for thousands of COVID-19 patients and volunteering As previously announced, the Company will not be to work in aged care and public facilities. paying a final dividend on ordinary shares for FY’20. It has been an extremely challenging time for our staff The CARES dividend due for payment on 20 October and doctors as we have pivoted to support national 2020 will be paid. 1 The New Lease Accounting Standard (AASB16) was adopted on 1 July 2019 and comparatives have not been restated, as permitted under the transitional provisions in the standard.