half year results presentation
Download
Skip this Video
Download Presentation
Half Year Results Presentation

Loading in 2 Seconds...

play fullscreen
1 / 25

Half year results Presentation 2009 - PowerPoint PPT Presentation


  • 533 Views
  • Uploaded on

Half Year Results Presentation. Six months ended 30 June 2009 12 August 2009. Agenda. 1. Introduction and Highlights Ray King, Chief Executive 2. Financial Review Tom Singer, Group Finance Director 2.1 Group financial review 2.2 Segmental results 2.3 Cash and debt

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Half year results Presentation 2009' - HarrisCezar


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
half year results presentation

Half Year Results Presentation

Six months ended 30 June 2009

12 August 2009

agenda
Agenda

1. Introduction and Highlights Ray King, Chief Executive

2. Financial Review Tom Singer, Group Finance Director

2.1 Group financial review

2.2 Segmental results

2.3 Cash and debt

3. Strategy and Outlook Ray King, Chief Executive

hy 2009 financial highlights
HY 2009 financial highlights
  • Revenues up 26% to £3.38bn (organic growth 5%)
  • Statutory surplus before tax up 1% to £163.8m despite generally higher levels of insurance claims
  • Underlying surplus before tax(i) increased by 7% to £174.9m
  • Net cash generated from operating activities up 74% to £328.2m
  • Total customer numbers broadly unchanged since year end at 10.3 million
  • Leverage(ii) reduced to 31% (34% at 2008 year end)
  • Post period end, successful £350m bond issue(iii); used to repay bank borrowings
  • For definition, see appendix
  • Gross debt (including hybrid debt) divided by (gross debt + equity)
  • Settlement date 2 July 2009
hy 2009 operating highlights
HY 2009 operating highlights
  • For PMI businesses, resilient new sales largely off-set higher lapse rates
  • Operational integration of major acquisitions on track
  • Continued focus on tight management of costs and capital expenditure
  • Good organic development pipeline:

-UK PMI: recently launched a major new operating system providing greater flexibility to introduce new products, tailor service and improve efficiency

-Sanitas opened Manises, its state-of-the-art hospital in Valencia on time and budget in May

-Health Dialog: extended expertise in chronic disease management to exploit opportunities in UK and France

-Continued development in care homes

  • Flu pandemic: contingency plans in place; no impact to date
slide5

Care Services Division

Bupa Care Services UK

Bupa Care Services Australia

Bupa Care Services NZ

Sanitas Residencial

New reporting structure*

Group

Europe, Middle East, Africa and Latin America Division

UK and North America Division

Asia/Pacific Division

Divisions

UK Membership – PMI

Sanitas PMI and Hospitals

Bupa Australia

UK Membership – non PMI

Bupa International

Bupa Hong Kong

Bupa Health Assurance Bupa Travel

Bupa Cash Plan

Wellness

Bupa Dental

Bupa Scandinavia

Bupa Thailand

Bupa Latin America

Bupa China

Business Units

Health Dialog (US)

Bupa Arabia (JV )

Max Bupa India (JV)

Bupa Home Healthcare

The Bupa Cromwell Hospital

Bupa Health Dialog (UK)

* Announced in June 2008. 2008 financial statements were reported on an IAS 14 basis which reflected the previous operational structure with the following divisions: UK Insurance, International Insurance, Care Homes, Other Health Services

revenues i

HY08 (%)

HY09 (%)

Revenues(i)

UK & North America

EMEALA

Asia Pacific

Care Services

By segment

UK

Non-UK

By geography

Total: £3.38bn

Total: £2.69bn

  • Good geographic balance
  • Growth in Asia Pacific following acquisitions
  • Care Services remain core and represents a much larger proportion of surplus
  • Reduced reliance on UK

(i) MBF acquired May 2008 so revenues only reflected from that date.

agenda7
Agenda

1. Introduction and Highlights Ray King, Chief Executive

2. Financial Review Tom Singer, Group Finance Director

2.1 Group financial review

2.2 Segmental results

2.3 Cash and debt

3. Strategy and Outlook Ray King, Chief Executive

hy 2009 financial overview
HY 2009 financial overview

Underlying surplus (£m)

Revenues (£m)

Statutory surplus (£m) (i)

3,375

175

164

162

163

2,685

1%

7%

26%

HY09

HY08

HY09

HY08

HY09

HY08

Net cash generated from operating activities (£m)

Net cash generated from operating activities (£m)

Equity attributable to Bupa (£m)(iii)

Leverage(ii) (%)

34

3,596

31

328

3,588

0%

74%

189

9%

HY09

HY08

HY09

FY08

HY09

FY08

  • Surplus before taxation expense
  • Gross debt (including hybrid debt) divided by gross debt plus equity
  • 2008 full-year figure restated
underlying surplus
Underlying surplus
  • Good underlying surplus growth of 7%
  • At constant exchange rates, underlying surplus down 2%
  • If effect of falling interest rates on net financial income is removed, underlying surplus at constant exchange rates is higher than in 2008
  • Other items principally include realised and unrealised foreign exchange gains and losses
financial income and expenses
Financial income and expenses
  • Appreciation in value of return seeking asset portfolio
  • Lower financial income and expenses due to interest rate decreases
  • Annualised return on Group investment portfolio 4.95% in the period
agenda11
Agenda

1. Introduction and Highlights Ray King, Chief Executive

2. Financial Review Tom Singer, Group Finance Director

2.1 Group financial review

2.2 Segmental results

2.3 Cash and debt

3. Strategy and Outlook Ray King, Chief Executive

uk and north america hy 2009 financials
UK and North America – HY 2009 Financials

UK Membership, Bupa Health Assurance, Bupa Wellness, Health Dialog (US), Bupa Health Dialog (UK), Bupa Home Healthcare, The Bupa Cromwell Hospital

  • UK PMI highly seasonal: lower claims and hospital admissions in second half of year
  • UK PMI: decrease in surplus due to higher claims, increased overheads, membership lapses and development expenditure. Net customer numbers only down 3% since end of 2008
  • BHA increased revenues by 14% mainly from its individual business
  • Bupa Wellness revenues decreased due to reduction in health assessments
  • Health Dialog (US) grew both revenues and surplus although most of this growth was due to favourable FX movements and inclusion of a full 6 months results. It is expected that revenue will be impacted in the second half as the recession affects US clients
  • The Bupa Cromwell Hospital performed well but surplus down due to non-recurring revenues
emeala hy 2009 financials
EMEALA – HY 2009 Financials

Sanitas PMI and Hospitals, Bupa International, Bupa Latin America, Bupa Scandinavia, Bupa Arabia

  • Customer numbers have grown 3% since end of 2008 driven mainly by Bupa Arabia and Bupa International
  • Sanitas revenue and surplus up due to increased fees and stable member numbers, in addition to favourable FX movements and cost containment
  • Bupa International revenue growth offset by higher corporate claims and operating costs including new business development spend, resulting in a reduced surplus
  • Bupa Latin America revenue grew as a result of price increases together with favourable FX movements. Surplus decreased due to higher claims
  • Bupa Scandinavia increases revenues due to price increases and favourable FX movements
asia pacific hy 2009 financials
Asia Pacific – HY 2009 Financials

Bupa Australia, Bupa Hong Kong, Bupa Thailand, Bupa China, Max Bupa India

  • Australia PMI highly seasonal: lower claims and hospital admissions in second half of year
  • Growth in revenues and surplus mainly due to the greater contribution from the Australian business as a result of the MBF acquisition
  • Bupa Australia / MBF:
      • 1% increase in members to 3.1 million
      • Integration progressing well, synergy benefits being realised ahead of schedule and likely to exceed initial estimates
  • Hong Kong and Thailand performed well
  • India on track to launch Q1 2010
care services hy 2009 financials
Care Services – HY 2009 Financials

Bupa Care Services UK, Bupa Care Services Australia, Bupa Care Services New Zealand, Sanitas Residencial

  • Revenue increase driven by fee growth
  • Surplus decreased as a result of lower average occupancy (down 1.6% since end of 2008 and higher staff and utility costs
  • UK: local authority fee increases averaged 2.5% although occupancy down 2% since the end of 2008 due to high mortality rates over the winter period
  • Australia: Occupancy increased in the period driving revenue growth of over 5%. Cash receipts from accommodation bonds above expectations
  • New Zealand: revenues increased 5% from improved government aged care funding
  • Sanitas Residencial: occupancy and fees adversely impacted by the recession. However, total residents up due to increased capacity available from new home openings
agenda16
Agenda

1. Introduction and Highlights Ray King, Chief Executive

2. Financial Review Tom Singer, Group Finance Director

2.1 Group financial review

2.2 Segmental results

2.3 Cash and debt

3. Strategy and Outlook Ray King, Chief Executive

cash generated from operating activities
Cash generated from operating activities
  • Other represents net loss/(gain) on foreign exchange transactions and net gains on disposal of property, plant and equipment
cash and investment portfolio
Cash and investment portfolio

3,000

  • Approx. 85% of overall portfolio held in bank deposits, CDs, FRNs at AA-/Aa3 or better
  • £23m gains on return seeking assets in H1 2009
  • Return seeking asset portfolio de-risked in Q4 2008/Q1 2009. Now 7% of overall portfolio
  • 4.95% annualised return on overall portfolio in the period

£m

2,000

1,000

0

30 June 2009

31 December 2008

Financial investments

Cash & cash equivalents

Return seeking assets

  • Excludes assets held in Australian investment management business
slide19

Borrowings

  • May 2009: Investor roadshow in London, Edinburgh and Glasgow
  • June 2009: Moodys upgraded Bupa Insurance Ltd’s IFSR from A3 to A2
  • 2 July 2009: Completion of £350m, 7.5%, senior, guaranteed, 7 year bond
  • Gross debt (including hybrid debt) divided by (gross debt + equity)
  • As per (i) but hybrid classified as equity due to its technically perpetual nature
agenda20
Agenda

1. Introduction and Highlights Ray King, Chief Executive

2. Financial Review Tom Singer, Group Finance Director

2.1 Group financial review

2.2 Segmental results

2.3 Cash and debt

3. Strategy and Outlook Ray King, Chief Executive

group strategic context and focus
Group strategic context and focus

Context

  • Long term trends in disease patterns and demographics underpin growth
  • Bupa has strong brands, market positions and balance sheet
  • Government budgets under pressure – will need to partner with private sector

Focus

  • Aim to be a health care leader in our chosen markets and help customers live longer, healthier and happier lives
  • Pursue excellent organic growth and development opportunities (e.g. chronic disease management, UK NHS,India JV, care homes)
  • Leverage our broad international skill base to aid differentiation
current operating priorities
Current operating priorities

UK and North America

UK PMI: Continue focus on operations to maximise efficiency and service to customers. Implement new operating system which will enable UKM to respond quickly and efficiently to market needs

Health Dialog: Defend US base, position for likely healthcare reform, and exploit capabilities internationally

The Bupa Cromwell Hospital: Progress redevelopment plans

Bupa Home Healthcare: Focus on key business segments to maximise opportunities

EMEALA

Sanitas: Continuing differentiation and focus on Manises start up

Bupa International: Maintain leadership through differentiation and continue to develop “big opportunity” markets

Latin America: Focus on broadening sales and distribution networks, building the Bupa brand and developing a cost-efficient provider network

Bupa Arabia: Focus on differentiation in service, brand and technology to capture market growth

Asia Pacific

Bupa Australia/MBF: Drive integration programme to deliver synergies and broaden our healthcare offering

Hong Kong: Focus on creating more flexible products and accessing new distribution opportunities

Emerging markets: Max Bupa JV expected to commence trading in 2010

Care Services

Division: Demonstrate healthcare leadership through excellence in dementia care

UK: Continued prudent cost management; strengthen our dementia offering

Spain: Grow occupancy levels, particularly in new homes

Australia/New Zealand: Take advantage of demand for nursing home places and high dependency care

outlook
Outlook
  • Trading conditions are likely to remain soft for some time since employment levels is expected to fall in major western markets, even when the recession begins to ease
  • Our performance is likely to remain resilient due to our focus on health and care and our geographic breadth
  • Bupa will continue to operate prudently with careful control of cash flow, while pursuing good opportunities for further organic development
  • We are excited by the long term growth prospects in the markets we serve and remain focused on our objective of helping customers live longer, healthier and happier lives
appendix definitions
Appendix - Definitions

Underlying surplus before taxation excludes non-recurring items mainly including the impact of profit/(loss) on sale of businesses, amortisation and impairment of intangible assets arising on business combinations, the performance of return seeking assets, goodwill impairment, property revaluations and realised and unrealised foreign exchange gains and losses.

Referencesto FY08 refers to the results for the year ended 31 December 2008.

Referencesto HY08 refer to the results for the six months ended 30 June 2008.

ad