Chairman’s Report

Ramsay Health Care Limited Annual Report 2016

6 RAMSAY HEALTH CARE LIMITED Chairman’s Report I AM PLEASED TO PRESENT THIS 2016 ANNUAL REPORT FOR RAMSAY HEALTH CARE. IT HAS BEEN ANOTHER STRONG & SUCCESSFUL YEAR WITH THE COMPANY PRODUCING RECORD EARNINGS WHILE AT THE SAME TIME, PROVIDING QUALITY & SAFE HEALTHCARE TO OVER THREE MILLION PATIENTS, DELIVERING 63,000 BABIES IN OUR MATERNITY FACILITIES & EMPLOYING OVER 60,000 PEOPLE AROUND THE WORLD. In terms of earnings, Ramsay Health Care reported Core Net Profit After Tax (NPAT) of $481.4 million for the year which was a 16.8% increase on the previous year. Core NPAT delivered Core EPS of 231.4 cents for the year, an increase of 17.7% on the previous corresponding period. This solid performance combined with our confidence in the earnings outlook for the coming year, enabled Directors to reward shareholders with a 17.8% increase in total dividends for the 2016 year (119.0c fully franked). Importantly, these excellent results enabled the Company to continue to invest in growth in our facilities and our people. In fiscal year 2016, we completed the acquisition of nine hospitals in Lille, France, which gives Ramsay Générale de Santé a strong presence in this region. Our business in France now has 124 facilities and is not only a leader in the market in terms of its size but also a leading quality healthcare provider admitting almost 1.8 million patients each year. In terms of our brownfield expansion programme, projects worth $300 million were completed during the year, delivering over 500 beds and 26 operating theatres. To ensure our facilities are equipped to meet the growing demand for healthcare in the future, the Board approved a further $200 million in brownfield developments over the period. Globally, Ramsay Health Care is set to benefit from the ongoing increase in demand for quality healthcare services and is well-placed for further growth. The Company’s robust balance sheet and strong cash flow generation continue to provide us with the flexibility to fund the increasing demand for brownfield capacity expansion, future acquisitions, and ongoing working capital needs. At the same time, our enduring “Ramsay Way” culture, the depth and experience of our senior management teams around the world, and our market leadership position, give the Board confidence to pursue new acquisitions and strategic opportunities when they arise. To this end, the Board is very supportive of Ramsay Health Care’s newly announced strategy to establish strategically located community pharmacies throughout Australia which


Ramsay Health Care Limited Annual Report 2016
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