In Inte terim im finan ancia ial l result sults For the perio - - PowerPoint PPT Presentation
In Inte terim im finan ancia ial l result sults For the perio iod ended ed 31 Decemb ember er 2017 Carel el Snym yman an Chief ief Financ nancia ial l Offic icer er Exchange ange rate e fluct ctuat uatio ions ns
Carel el Snym yman an Chief ief Financ nancia ial l Offic icer er
Page 2
Exchange ange rate e fluct ctuat uatio ions ns
Description Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 Sep'17 Dec'17 Average rate 9.55 9.74 9.83 10.35 10.56 10.58 10.56 10.38 10.26 10.38 10.43 Closing rate 9.41 9.79 11.24 11.53 11.13 10.54 9.86 9.94 9.93 10.61 9.64
Number ber of cases per r quart arter er
Page 3
Dec 2017 Dec 2016 Jun 2017 Unaudited Unaudited Audited R'000 R'000 R'000 Assets Non-current Assets 378 842 337 254 349 700 Property, plant and equipment ₁ 263 847 253 669 251 184 Goodwill ₂ 30 947 26 487 26 597 Intangible assets 27 498 29 073 28 458 Operating lease asset 1 217
Other financial assets 7 943 6 391 5 894 Deferred taxation₃ 47 390 21 634 36 327 Current Assets 84 853 87 354 88 640 Inventories 11 235 8 965 10 038 Trade and other receivables4 20 010 20 429 26 576 Other financial assets 5 645 5 738 5 777 Operating lease asset 4 841 763 5 412 Current tax receivable 1 358 1 418 354 Cash and cash equivalents 41 764 50 041 40 483 Total Assets 463 695 424 608 438 340
Statemen ement of Finan anci cial al Position ition as at 31 Decemb cember er 2017
₁ Increase in property, plant and equipment is due to assets purchased for Coffs (PMA) totalling approximately R9 mil as well as assets to the value of R3 mil purchased for East Rand Day Hospital (AHSA). ₂ Due to the purchase of Madison Day Surgery (PMA) goodwill increased with AUD 850k. Adjustment to goodwill due to a sale of shares to doctors in Sep ‘17 resulting in a net reduction in goodwill of
therefore AUD 500k. ₃ Deferred tax asset increased during the period under review - this is due to the increase in assessed losses incurred by the group for the six months. ₄ In South Africa the trade and other receivables decreased by R6 million. This is mostly due the VAT refunds received, as well as a focused management of accounts receivable.
Page 4
Dec 2017 Dec 2016 Jun 2017 Unaudited Unaudited Audited R'000 R'000 R'000 Equity and Liabilities Capital and reserves 203 322 164 622 141 875 Stated capital 5 222 297 137 378 137 378 Foreign currency translation reserve 27 534 27 898 28 898 Retained earnings (51 749) (6 343) (28 417) Share based payment reserve 5 240 5 689 4 016 Non-controlling interest 40 596 45 995 43 507 Total Equity 243 918 210 617 185 382 Non-current Liabilities 129 253 154 652 184 738 Other financial liabilities ₆ 82 507 116 244 142 630 Finance lease obligations 26 918 32 846 25 408 Operating lease liability 18 796 5 338 16 320 Provisions 1 032 94
380 Current Liabilities 90 524 59 339 68 220 Other financial liabilities 6 41 509 9 603 13 630 Finance lease obligations 9 938 4 366 8 820 Trade and other payables 7 27 056 29 862 36 658 Provisions 5 414 3 092 3 645 Current tax liability 3 540 8 720 2 326 Operating lease liability 3 067 3 696 3 141 Total Equity and Liabilities 463 695 424 608 438 340
Statemen ement of Finan anci cial al Position ition as at 31 Decemb cember er 2017- continu inued ed
₅ New shares issued during the rights issue that occurred during August 2017. Total increase in stated capital after deducting share issue related costs amounts to approximately R85 mil. ₆ The movements in the current and non- current other financial liabilities are due to:
whereby 58,4 mil shares were not settled in cash, but a loan account
– amount of R75,9 mil.
and PMA from Eenhede Konsultante.
loan to PMA to the value AUD1,1 mil included in current liabilities. ₇ Trade and other payables decreased during the six month period due to fewer equipment purchases during the period under review.
Page 5
Statemen ement of Profit fit or Loss and Other er Compr preh ehen ensive ive Income me for the perio riod d ended ed 31 Decem ember ber 2017
Page 6
Dec 2017 Dec 2016 Jun 2017 Unaudited Unaudited Audited R'000 Var % R'000 R'000 Revenue 199 463 33 149 751 309 109 Cost of sales (100 750) 35 (74 651) (154 857) Gross profit 98 713 31 75 100 154 252 Gross profit % 49% 50% 50% Other income 902 55 581 1 309 Other operating expenses (85 235) 30 (65 572) (132 534) Earnings before interest, taxation, depreciation, amortisation and rental 14 380 42 10 109 23 027 Investment income 286 (1) 290 725 Finance costs (6 865) 10 (6 255) (15 097) Rental paid (23 222) (0) (23 236) (45 893) Depreciation (15 939) 26 (12 636) (28 779) Loss before taxation (31 360) (1) (31 728) (66 017) Taxation 8 716 (4) 9 048 17 834 Loss after taxation (22 644) (0) (22 680) (48 183) Other comprehensive expense for the period/year (2 714) (79) (13 202) (11 761) Total comprehensive loss for the period/year (25 358) (29) (35 882) (59 944) Loss attributable to: Owners of the parent (23 332) (23 311) (48 176) Non-controlling interest 688 9 631 (7) (22 644) (0) (22 680) (48 183) Total comprehensive loss attributable to: Owners of the parent (24 696) (31) (35 793) (59 658) Non-controlling interest (662) >100 (89) (286) (25 358) (29) (35 882) (59 944) Loss per share Basic (cents per share) (8.55) (10.52) (21.74) Diluted (cents per share) (8.55) (10.52) (17.08)
Statemen ement of Cash Flow w for the perio riod d ended ed 31 Decemb ember er 2017
Page 7
Dec 2017 Dec 2016 Jun 2017 Unaudited Unaudited Audited R'000 R'000 R'000 Cash flows used in operating activities Cash generated by operations (4 357) (16 288) (19 574) Investment income 286 290 725 Finance costs (6 865) (6 255) (15 097) Taxation (paid)/ received (3 277) 182 (10 511) Net cash from operating activities (14 213) (22 071) (44 457) Cash flow from investment activities Acquisition of property, plant and equipment (27 469) (29 401) (52 090) Proceeds on the sale of property, plant and equipment 73 122 19 093 Acquisition of intangible assets (323) (2 210) (3 344) Acquisition of 100 % shares in Madison Day Surgery (8 440)
(1 306)
57 2 137 2 595 Net cash from investing activities (37 408) (29 352) (33 746) Cash flow from financing activities Issue of shares 11 349 2 100 2 867 Proceeds from subsequent sale of shares in Madison Day Surgery 3 481
47 286 54 009 89 234 Financial liabilities repaid (2 991)
Dividends paid - non controlling interest (4 214) (434) (3 374) Finance lease payments (915) (3 563) (7 381) Net cash from financing activities 53 996 52 112 70 618 Net increase/(decrease) in cash and cash equivalents 2 375 689 (7 585) Cash at the beginning of period/year 40 483 52 844 52 844 Effect of foreign currency translation (1 094) (3 492) (4 776) Cash and cash equivalents at the end of the period/year 41 764 50 041 40 483
Net stated capital Share based payment reserve Foreign currency translation reserve Retained earnings/ (accumulated loss) Non- controlling interest Total equity R'000 R'000 R'000 R'000 R'000 R'000 Balance as at 1 July 2016 137 378 4 465 40 380 16 968 44 300 243 491 Loss for the period
631 (22 680) Other comprehensive income for the period
(13 202) Share based payment expense
Change in interest of subsidiary
(464) Issue of shares in subsidiary
2 713 Dividends declared
(464) Balance as at 31 December 2016 137 378 5 689 27 898 (6 343) 45 995 210 617 Loss for the period
(638) (25 503) Other comprehensive income for the period
1 441 Share based payment expense
Change in interest of subsidiary
465 Transfer of share-based payments
154 Dividends declared
(2 910) Balance as at 30 June 2017 137 378 4 016 28 898 (28 417) 43 507 185 382 Loss for the period
688 (22 644) Other comprehensive income
(2 714) Share based payment expense
Issue of shares -net 84 919
86 884 Dividends declared
(4 214) Balance as at 31 December 2017 222 297 5 240 27 534 (51 749) 40 596 243 918
Page 8
Statemen ement of Changes ges in Equity uity for the perio riod d ended ed 31 Decemb ember er 2017
Key Financial ancial Ratio ios
Page 9
Dec 2017 Dec 2016 Jun 2017 Unaudited Unaudited Audited Financial ratios: Statement of financial position Total number of shares in issue ('000) 287 988 221 615 221 615 Net asset value per share (cents) 84.70 95.04 83.65 Net tangible asset value per share (cents) 64.40 69.97 58.81 Quick ratio 0.81 1.32 1.15 Current ratio 0.94 1.47 1.30 Net debt less cash to equity ratio 49% 77% 81% Financial ratios: Statement of comprehensive income Headline loss for the period/year attributable to ordinary shareholders (23 342) (23 317) (48 202) Headline loss per share (cents) (8.56) (10.52) (21.75) Diluted headline loss per share (cents) (8.56) (10.52) (17.09)
Australia ralia (PMA) A) South Africa ica Group p Total
Revenue (R’000) Profit/(loss) after tax (R’000) % Revenue
146 902 1 986 74% 26% 52 561 (22 345) 199 463 (22 644) 100% Segmen mental tal report port for the perio riod d ended ed 31 Decemb ember er 2017 Corporate porate 0% 0%
Page 10
Bibi i Goss-Ros
Chief ief Operati ations
icer er
AHSA hospitals itals (video ideocli clip p overview) rview)
Page 12
Healthcare is changing In the last two years the Day Hospital Association grew from 28 to 45 members Abroad most of the short stay surgery is performed in day hospitals Potential for substantial growth in SA
Healt lthcare hcare industry ustry
Page 13
Gained market share Improved patients experience Initiated GP, dental and optometry networks Improved economies of scale Demonstrate exceptional quality of care Cost effective and maintain efficiency Partnership with like-minded doctors Competition Commission’s Health Market Inquiry
2017 - what at have we done e right? ht?
Page 14
We are on the right road Change takes time to materialise Opened too many facilities over a short period of time Changed marketing strategy Buy-in from specialists took longer than anticipated Medical aids not bold enough
What have e we learnt rnt?
Page 15
Affordable and accessible alternative Infection limited with short stay Recover at home post surgery Centralised management Well trained staff – consistency in staff Ownership adopted by our staff No time delays or emergencies for surgeons or patients
We believe ieve in the self-actu actualis alisation ation of our staff, aff, sat atis isfyi ying g our docto tors rs and deliver iverin ing g a patient atient centred red service. vice. What do we offer? er?
Page 16
Understand rstanding ng the core re business ss – concept makes perfect sense in our world at Advanced Health Commitm tment nt and believing ng in same-day day surgery ry – affordable quality healthcare Managem ement ent and staff f – core pillars of strength.
Change ge strate tegy gy
Page 17
Our facilities are consistently increasing patient numbers Specialists number are increasing Medical Schemes are increasing support for day hospitals AH(SA) opening two new facilities during 2018 Expansion strategy will be resumed once we turned the corner Breaking boundaries Ongoing discussions with BEE partners
Posit itives ives and solution ions within hin Advan vanced ced Healt lth
Page 18
Fasie e Smith th Strate tegic and Clinical Manager er
Pushing hing the boundaries ndaries
Expanding opportunities Mental health Home nursing Knee replacement
Page 20
Integrated care pathways Multi-disciplinary Inclusion, exclusion criteria Transparent outcomes Technology
Model l to support port clin inical ical innovation vation
Page 21
22
A leading healthcare company specialising in establishing and managing private day hospitals
PRESMED AUSTRALIA
Presmed Australia (PMA) is one of the leading healthcare companies in Australia that specialises in both the establishment and management of day hospitals, and has built a strong and trusted name in the industry.
23
24
in the PMA Group within NSW Australia
PMA majority shareholder in each facility
PMA Management Contracts
in the 5 day hospitals & Laser Vision Clinic The PMA Group has been recognised and awarded the prestigious status as a Teaching Hospital by the University
Sydney. Our Group is one of the only Day Hospital Groups in Australia to have achieved this Doctor’s maintain a shareholding within the Day Hospitals, which secures their
loyalty and support within the PMA Group. Doctor’s are involved in local governance at the Day Hospitals, as representatives
the Medical Advisory and Audit Committee (MAAC) as well as
the Day Hospitals’ Board of Directors.
25
PMA key management strategies
33 new surgeons joined between Jul17 – Dec17 38% growth in patient volume compared to the same period last year 2 new Day Hospitals – MDS and COFFS – were acquired by PMA since July 2017 1.4% reduction in cost of sales compared to the same period last year 98% of accounts receivable collected within 28 days
26
Carl rl Gril illenbe lenberger rger Chief ief Executi cutive e Offic ficer er
Why?
Our healthcare costs escalate at rates higher than inflation Private healthcare runs the risk of becoming unaffordable The spiralling impact is further aggravated by: Younger healthy members leaving Older members triggering stronger demand Government is gradually reducing medical scheme tax benefits As a result more younger member will start to opt out
will become unbearable
Page 28
Page 29
Anti-com competit petitive ive hospital ital strate tegies gies
Private hospitals are the main drivers of our healthcare costs Pressure on specialists 70% of procedures can be attended to at substantial savings in day hospitals
Page 30
Wit ith h courte tesy y from m GEMS
Page 31
Progr gress
We will have to change our perce ceptions ptions and believ ieves es, “the medical scheme pays – cost does not matter” This is wrong as it threatens the long-term survival of this system and it encour
ages es docto tor r not to treat at patients ients cost effec ectiv tively ely The perce ception ption of medical practitioners must change The burden en resting on our children will become unaffor afforda dable ble There is no futur ure e for private healthcare unless we change perce ceptions ptions You and I are the ones who are paying for these bills I believe the time is ripe that all of us must stop wasting money Patient must be treated ethic icall lly y correct rect The Competition Commission insists, “Patients must be informed about quality and cost”
Page 32
Page 33
Disclaim claimer er
cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. These forward looking statements may be identified by word such as “expect, believe, anticipate, plan, estimate, intend, project, target, predict, outlook” and words of similar meeting.
are not statements of fact but statements by management of Advanced Health Limited based on its current estimates, projections, beliefs, assumptions and expectations regarding the group’s future performance.
be placed on such statements.
are not limited to; domestic and international business and market conditions; changes in the domestic or international regulatory and legislative environment in the countries in which the Group operates; changes to domestic and international operational, economic, political and social risks; changes to IFRS and the interpretations, applications and practices subject thereto as they apply to past, present and future periods; and the effects of both current and future litigation.
statements contained in this presentation and does not assume responsibility for any loss or damage whatsoever and howsoever arising as a result of the reliance of any part thereon, including, but not limited to, loss of earnings, profits or consequential loss or damage. Page 34