Group unaudited financial results for the six months ended 31 December 2016 (Presentation done in South African rand) We develop and manage day hospitals in South Africa and Australia 22 February 2017 l 23 February 2017 Johannesburg l Cape Town
Welcome Highlights Carl Grillenberger Financial performance Carel Snyman Australia Marc Resnik South Africa Management Industry overview Carl Grillenberger Questions
Highlights Carl Grillenberger
Financial Turnover R'000 149 751 160 000 103 563 110 261 140 000 89 220 120 000 100 000 80 000 39 490 Segmental turnover contribution 60 000 14 343 Target 50 : 50 40 000 20 000 - 83 100 Aus SA Total 74 80 Dec 16 Dec 15 60 Increase % 26 40 17 20 0 250% 207% Dec 16 Dec 15 175% 200% Aus SA 150% 100% 60% 45% 24% 11% 50% 0% Aus SA Total Turnover Patient Numbers
Operational South Africa o Ten operational day hospitals, target of 20 by 2020 achievable. o Growing medical-schemes support. o Increasing healthcare partners’ participation. Australia o Four operational day hospitals. o Flagship Chatswood Private Hospital: Associate membership of World Association of Eye Hospitals. o Target of six day hospitals by 2020 achievable.
Financial Carel Snyman
Exchange rate fluctuations Impossible to forecast the exchange rates. The average rate from June’ 16 to December’ 16 remained consistent but weakened in comparison to December’ 15. A weakening in exchange rates has a positive impact on the profits realised in Australia. The closing rate strengthened in comparison to both December’ 15 and June’ 16 impacting negatively on the Australian figures. Description Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 An strengthening in Average Rate 9.46 9.55 9.83 10.56 10.56 exchange rates has a positive Closing Rate 9.47 9.41 11.24 11.13 9.86 impact on the equipment prices for the South African Budget 10.82 10.82 10.00 10.00 10.00 operations.
Statement of financial position: 31 st December 2016 Dec 2016 Dec 2015 June 2016 Unaudited Unaudited Audited ¹ Property, plant and equipment R'000 R'000 R'000 increased due to additional Assets equipment purchased. Non-current Assets 337 254 242 909 329 078 Property, plant and equipment ¹ 253 669 182 340 251 317 ² Increase in deferred tax due to Goodwill 26 487 28 054 28 561 losses incurred in the South Intangible assets 29 073 28 881 28 333 African operations. Other financial assets 6 391 - 7 789 Deferred taxation ² 21 634 3 634 13 078 ³ Included in trade and other Current Assets 87 354 155 475 109 869 receivables are amounts due from Inventories 8 965 6 345 9 093 the South African Revenue Trade and other receivables ₃ 20 429 22 487 36 970 Services for Value Added Tax - Other financial assets 5 738 7 354 6 477 Advanced De La Vie: R2mil, Operating lease asset 763 737 2 381 Advanced Worcester R1,8mil and Current tax receivable 1 418 3 094 2 104 Advanced Vergelegen R1,9. Cash and cash equivalents 50 041 115 458 52 844 Subsequent to the reporting date the full refund for Advanced Vergelegen was received. Total Assets 424 608 398 384 438 947
Statement of financial position: 31 st December 2016 Dec 2016 Dec 2015 June 2016 Unaudited Unaudited Audited R'000 R'000 R'000 Equity and Liabilities ¹ The FCTR variance is due to the Rand strengthening against the Capital and Reserves 164 622 223 218 199 191 Australian Dollar. Stated capital 137 378 137 378 137 378 Closing rate at 31 December’ 16 – Foreign currency translation reserve ¹ 27 898 46 243 40 380 9,86 vs. a closing rate of 11,13 as Retained earnings (6 343) 36 204 16 968 at 30 June’ 16. Share based payment reserve 5 689 3 393 4 465 Non-controlling interest 45 995 48 784 44 300 ² Other financial liabilities include loans from our major shareholder Total Equity 210 617 272 002 243 491 of R66 mil and ABSA Bank of R52mil. Non-current Liabilities 154 652 72 940 112 660 Other financial liabilities ₂ 116 244 65 478 71 169 ³ Finance leases include a lease Finance lease obligations ₃ 32 846 381 31 701 from the Bank of Queensland to Operating lease liability 5 338 1 560 6 947 the value of R24 mil. Provisions 94 2 526 2 013 Deferred tax 130 2 995 830 ⁴ The decrease in the trade Current Liabilities 59 339 53 442 82 796 payable figure compared to 30 Other financial liabilities ₂ 9 603 8 458 9 240 June’ 16 is due to a decrease in Finance lease obligations ₃ 4 366 1 682 7 823 the purchase of capital Trade and other payables ₄ 29 862 34 959 51 303 equipment during the period Operating lease liability 3 696 - 1 175 under review. Provisions 3 092 2 023 3 688 Current tax liability 8 720 6 320 9 567 Total Equity and Liabilities 424 608 398 384 438 947
Statement of comprehensive income: 31 st December 2016 ¹ Revenue increased due to higher activities and more facilities becoming 6 months 6 months 12 months operational. Dec 2016 Dec 2015 June 2016 Unaudited Unaudited Audited ² Gross profit percentage in line with the R'000 R'000 R'000 previous periods. Revenue ₁ 149 751 103 563 241 192 ³ Other operating expenses are Cost of sales (74 651) (47 266) (118 430) impacted by additional facilities Gross profit ₂ 75 100 56 297 122 762 becoming operational. Other income 581 163 207 Other operating expenses ₃ (88 808) (48 741) (127 397) ⁴ Decrease in investment income due to cash utilised in the financing of the new EBITDA (13 127) 7 719 (4 428) facilities rather than being invested. Investment income ₄ 290 2 107 2 881 Finance costs ₅ (6 255) (916) (4 531) ⁵ Finance costs increased as a result of Depreciation ₆ (12 636) (5 461) (16 152) the increase in loans. (Loss) / Profit before taxation (31 728) 3 449 (22 230) Taxation 9 048 (1 067) 6 501 ⁶ Increase in depreciation is due to new (Loss) / Profit after taxation (22 680) 2 382 (15 729) equipment brought into use. Other comprehensive income/(expense) for ⁷ Other comprehensive income consists the period ₇ (13 202) 24 411 14 506 of foreign currency translation. The Total comprehensive (expense) / income (35 882) 26 793 (1 223) Rand strengthened against the Australian Dollar. for the period
Statement of comprehensive income: 31 st December 2016 6 months 6 months 12 months Dec 2016 Dec 2015 June 2016 Unaudited Unaudited Audited R'000 R'000 R'000 (Loss) / Profit attributable to: Owners of the parent (23 311) 925 (18 311) Non-controlling interest 631 1 457 2 582 (22 680) 2 382 (15 729) Total comprehensive (loss) / profit attributable to: Owners of the parent (35 793) 19 935 (5 164) Non-controlling interest (89) 6 858 3 941 (35 882) 26 793 (1 223)
Condensed statement of cash flows: 31 st December 2016 Dec Dec Jun 2016 2015 2016 R'000 R'000 R'000 Net cash flows (used in) / from operating activities (22 071) 18 589 4 334 Net cash flows (used in) / from investing activities (29 352) (96 610) (135 743) Net cash flows from financing activities 52 112 66 719 62 407 Net increase / (decrease) in cash and cash equivalents 689 (11 302) (69 002) Cash and cash equivalents at the beginning of the period 52 844 115 274 115 274 Effect of translation of foreign operations (3 492) 11 486 6 572 Cash and cash equivalents at the end of the period 50 041 115 458 52 844 Cash outflow from operating activities of R22 mil. Investment activities resulted in a cash outflow of R29 mil. Above cash outflows were financed by means of loans to the value of R52 mil.
Financial ratio’s 6 months 6 Months Unaudited Unaudited Audited Dec 2016 Dec 2015 June 2016 Quick ratio 1.32 2.67 1.22 Current ratio 1.47 2.79 1.33 Gearing % ¹ 81.56 23.34 53.18 HEPS (cps) (10.52) 0.51 (8.02) Weighted average shares ('000) 221 615 221 615 221 615 ¹ The increase in the gearing percentage is due to the increase in the other liabilities and the increase in finance leases.
Segmental reporting Dec 2016 The South African operations incurred start-up losses for the new Australia facilities that became operational. South Africa Group Total (PMA) The Australian operations generated profits close to R3 mil. 39 490 The number of cases generated in 110 261 149 751 Revenue (R'000) South Africa increased due to the increased activities and now constitute 48% of the total cases generated by the Group. 2 914 (25 594) (22 680) PAT (R'000) Due to exchange rate fluctuations and higher activities the South African operations contributed 26% of the revenue for the period under review. The South African revenue % Revenue of Total 74% 26% 100% generated during the 2016 financial year was 17% of the total Group revenue.
Australia Marc Resnik
Australia Presmed Australia (PMA): Leading day hospital company, establishes and manages day hospitals. Four day hospitals in Australia: o Ophthalmic Surgery Centre (OSC) o Epping Surgery Centre (ESC) o Central Coast Surgery Centre (CCDH) o Sydney ENT (SENT), Sydney’s only ENT -specific Day Hospital. o Merged SENT with the OSC to establish Chatswood Private Hospital (CPH) as Australia’s largest day hospital. Management contract Laser Vision Clinic Central Coast (LVCCC). Associate Membership to the World Association of Eye Hospitals granted to CPH, a first for private hospital provider in Australia.
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