Q4 2026 Ramsay Health Care Ltd Earnings Call

August 27, 2026

Speaker #1: Good morning, everyone, and welcome to Ramsay Health Care's full year results presentation for the 12 months ending 30th of June, 2026. I'm Natalie Davis, the Managing Director and Group CEO, and I'm joined today by our Group CFO, Anthony Nielsen.

Natalie Davis: Good morning, everyone, and welcome to Ramsay Health Care's full year results presentation for the 12 months ending 30 June 2026. I am Natalie Davis, the Managing Director and Group CEO, and I am joined today by our Group CFO, Anthony Neilson. Today, we will share our financial results and the significant progress we have made over the past year in transforming the business. I am pleased that we are maintaining high patient NPS scores and clinical excellence in every region, building transformation momentum in the Australian business, and improving performance and capital returns across the group. I would like to thank our incredible people and our clinicians who dedicate themselves to our patients and are the foundation of our success. Turning to slide 4, we have made good progress delivering against our three key priorities. First, the multi-year transformation of our market-leading Australian hospital business.

Speaker #1: Today, we will share our financial results and the significant progress we have made over the past year in transforming the business. I'm pleased that we are maintaining high patient NPS scores and clinical excellence in every region, building transformation momentum in the Australian business, and improving performance and capital returns across the group.

Speaker #1: I'd like to thank our incredible people and our clinicians, who dedicate themselves to our patients and are the foundation of our success. Turning to Slide 4, we've made good progress delivering against our three key priorities.

Speaker #1: First, the multi-year transformation of our market-leading Australian hospital business. Second, strengthening capital discipline and improving returns across the portfolio. And third, evolving our culture to innovate and accelerate delivery.

Natalie Davis: Second, strengthening capital discipline and improving returns across the portfolio. Third, evolving our culture to innovate and accelerate delivery. Our strengthened group executive team and the capability they are building in key commercial and operational areas has enabled us to accelerate the pace of our transformation. In Australia, our high acuity growth focus, improved theater utilization, revenue indexation, and cost management has delivered underlying EBIT growth of 11.2% and a +30 basis points uplift in EBIT margin. Importantly, we are also well progressed with our proposed separation of Ramsay Santé, which is on track for completion in late 2026, subject to a shareholder vote in November. Turning to slide 5, and looking at the headline numbers in constant currency movements for the full year, revenue was AUD 18.6 billion, reflecting 4.2% growth compared to FY25, driven by 8% revenue growth in Australia.

Speaker #1: Our strengthened group executive team, and the capability they are building in key commercial and operational areas, has enabled us to accelerate the pace of our transformation.

Speaker #1: In Australia, our high acuity growth focus improved utilization, revenue indexation, and cost management, which has delivered underlying EBIT growth of 11.2% and a plus 30 basis point uplift in EBIT margin.

Speaker #1: Importantly, we're also well-progressed with our proposed separation of Ramsay Santé, which is on track for completion in late 2026, subject to a shareholder vote in November.

Speaker #1: Turning to slide five and looking at the headline numbers in constant currency movements for the full year: revenue was $18.6 billion, reflecting 4.2% growth compared to FY25, driven by 8% revenue growth in Australia.

Speaker #1: Underlying EBIT increased 11.8%, and underlying NPAT increased 22.9%, reflecting our focus on improving performance through transformation programs in each region. Reported NPAT was $329 million.

Natalie Davis: Underlying EBIT increased 11.8%, and underlying NPAT increased 22.9%, reflecting focus on improving performance through transformation programs in each region. Reported NPAT was AUD 329 million. We have strengthened capital discipline, focusing growth and development CapEx on Australia and procedural capacity, reflected in group ROIC, increasing by 30 basis points. And funding group ROIC +60 basis points to 6.3%. Our focus on performance improvement and cash conversion has seen Australia and both UK businesses net cashflow positive for the period, and improved our funding group leverage to less than 2 times. The board has determined a final fully franked dividend of AUD 0.485 per share, which is up 21.3% and taking the full year dividend to AUD 0.91 per share, up 13.8% on the prior period, and representing a payout ratio of 60.3% of underlying earnings.

Speaker #1: We've strengthened capital discipline, focusing growth and development capex on Australia and procedural capacity. This is reflected in group ROIC increasing by 30 basis points and funded group ROIC up 60 basis points to 6.3%.

Speaker #1: Our focus on performance improvement and cash conversion has seen Australia and both UK businesses net cash flow positive for the period, and improved our Group funding leverage to less than two times.

Speaker #1: The Board has determined a final fully-franked dividend of 48.5 cents per share, which is up 21.3%, taking the full-year dividend to 91 cents per share, up 13.8% on the prior period, and representing a payout ratio of 60.3% of underlying earnings.

Speaker #1: These results highlight the momentum building across our business and the positive impact of our strategic initiatives. Slide six provides more detail on our underlying result and the split between the funding group contribution and Ramsay Santé.

Natalie Davis: These results highlight the momentum building across our business and the positive impact of our strategic initiatives. Slide 6 provides more detail on our underlying result and the split between the funding group contribution and Ramsay Santé. All regions improved performance. Australia reporting 11.2% growth in underlying EBIT on 8% growth in revenue. Both UK businesses reporting growth in earnings through operational initiatives, mitigating the impact of lower funding by the NHS. Ramsay Santé's improved EBIT was driven by its Swedish business and performance improvement initiative, more than offsetting the difficult funding environment in France. Moving to focus on each region, starting with Australia on Slide 8, our transformation continues to build momentum driven by our big five hospital operations improvement initiatives.

Speaker #1: All regions improved performance. Australia reported 11.2% growth in underlying EBIT on 8% growth in revenue. Both UK businesses reported growth in earnings through operational initiatives mitigating the impact of lower funding by the NHS.

Speaker #1: Ramsay Santé's improved EBIT was driven by its Swedish business and performance improvement initiatives, more than offsetting the difficult funding environment in France. Moving now to focus on each region.

Speaker #1: Starting with Australia on slide eight, our transformation continues to build momentum, driven by our 'big five' hospital operations improvement initiatives. Our strategic focus on growing in high acuity and priority therapeutic areas, improving utilization, and focusing on procurement initiatives has driven admissions and revenue growth, as well as margin expansion.

Natalie Davis: Our strategic focus on growing in high acuity and priority therapeutic areas, improving theater utilization and focus on procurement initiatives has driven admissions and revenue growth and margin expansion. Pleasingly, we achieved this alongside improved patient, doctor, and team NPS scores. With the new executive team in place, we have started to accelerate the execution of our 2030 strategy. We are looking forward to National Capital Private Hospital joining our Ramsay network next week and serving the local community. During the year, we also signed a new partnership agreement with one of our major insurers, which will enable us to focus on collaborating to strengthen the private health proposition. We have grown our Ramsay research and development network to 22 sites and continue to grow clinical trials activity with a 28% increase. Turning to the Australian results in more detail on Slide 9.

Speaker #1: Pleasingly, we achieved this alongside improved patient, doctor, and team NPS scores. With the new executive team in place, we've started to accelerate the execution of our 2030 strategy.

Speaker #1: We're looking forward to National Capital Private Hospital joining our Ramsay network next week and serving the local community. During the year, we also signed a new partnership agreement with one of our major insurers, which will enable us to focus on collaborating to strengthen the private health proposition.

Speaker #1: We've grown our Ramsay research and development network to 22 sites and continue to increase clinical trials activity, with a 28% increase. Turning to the Australian results in more detail on slide nine.

Speaker #1: The business delivered 11.2% growth in underlying EBIT, driven by higher activity and acuity levels, improved utilization of treatment capacity, improved private health insurance indexation, and effective cost management.

Natalie Davis: The business delivered 11.2% growth in underlying EBIT, driven by higher activity and acuity levels and improved utilization of treatment capacity, improved private health insurance indexation, and effective cost management. We reported a 30 basis point improvement in underlying EBIT margin to 9.4%. The impact of the new funding mechanism at Joondalup Public Campus was partially mitigated to approximately negative AUD 26 million by actions including a focus on timely discharge of patients, agency reduction, increased winter activity as our clinicians continue to provide excellent care to the local community. Underlying labor costs were flat as a percentage of revenue and lower excluding the impact of Joondalup funding, reflecting a focus on reduced agency use over the period. We were also able to lower supply costs as a percentage of labor through procurement savings.

Speaker #1: We reported a 30 basis point improvement in underlying EBIT margin to 9.4%. The impact of the new funding mechanism at Joondalup Public Campus was partially mitigated to approximately negative $26 million by actions including a focus on timely discharge of patients, agency reduction, and increased winter activity, as our clinicians continue to provide excellent care to the local community.

Speaker #1: Underlying labor costs were flat as a percentage of revenue and lower excluding the impact of Jundula funding, reflecting a focus on reduced agency use over the period.

Speaker #1: We were also able to lower supply costs as a percentage of labor through procurement savings. Our portfolio optimization efforts have continued, with four sites closed and excess land holdings put up for sale.

Natalie Davis: Our portfolio optimization efforts have continued with four sites closed and excess land holdings put up for sale. Before moving to the key drivers of our results, Slide 10 details some of the underlying trends in the Australian private healthcare market. The market is showing improving fundamentals with hospital coverage continuing to grow as Australians prioritize their healthcare, growing by 2.5% per annum in the last three years, and payout ratios gradually improving, however, with some way to go. Acute private hospitals remain the predominant setting for private healthcare and are evolving their services to include day procedures. Down-tiering from Gold policies to Silver hospital coverage continues, impacting private mental health and maternity in particular. Now delving deeper into Ramsay Australia's activity trends on Slide 9. Sorry, Slide 11.

Speaker #1: Before moving to the key drivers of our results, slide 10 details some of the underlying trends in the Australian private healthcare market. The market is showing improving fundamentals, with hospital coverage continuing to grow as Australians prioritize their healthcare, growing by 2.5% per annum in the last three years, and payout ratios gradually improving.

Speaker #1: However, there's still some way to go. Acute private hospitals remain the predominant setting for private healthcare and are evolving their services to include more day procedures. Down-tiering from Gold policies to Silver Hospital coverage continues, impacting private mental health and maternity in particular.

Speaker #1: Now, delving deeper into Ramsay Australia's activity trends on slide nine—sorry, slide 11. Excluding the impact of Peachey and Berwick Cancer Hospital, which have both returned to public operation, you can see we observe strong growth in our core surgical and day activity, coupled with higher inpatient acuity.

Natalie Davis: Excluding the impact of Peel and Border Cancer Hospital, which have both returned to public operation, you can see we observed strong growth in our core surgical and day activity, coupled with higher inpatient acuity. Surgical admissions, which account for more than half of our total admissions, grew 4.1%, increasing 40 basis points as a percentage of our total admissions, reflecting our focus on growth in key therapeutic areas. Medical admissions were up 3.2%, and rehabilitation admissions increased by 3.8%. Mental health admissions declined by 3.9%, but this was mainly due to declining day admissions, with overnight mental health admissions, which contribute the majority of our revenue in mental health, increasing by 0.9%. Looking at funding types, private admissions grew 2.8%. Public admissions increased by 9.5%, reflecting strong activity at Joondalup, and a 7.7% increase in public and private activity.

Speaker #1: Surgical admissions, which account for more than half of our total admissions, grew 4.1%, increasing 40 basis points as a percentage of our total admissions, reflecting our focus on growth in key therapeutic areas.

Speaker #1: Medical admissions were up 3.2%, and rehabilitation admissions increased by 3.8%. Mental health admissions declined by 3.9%, but this was mainly due to declining day admissions, with overnight mental health admissions—which contribute the majority of our revenue in mental health—increasing by 0.9%.

Speaker #1: Looking at funding types, private admissions grew 2.8%. Public admissions increased by nine and a half percent reflecting strong activity at Jundula and a 7.7% increase in public in private activity.

Speaker #1: Day-only admissions increased by 3.8%, boosted by new surgical centers at Charleston and Calandra, while overnight IPTAs increased by 3%, reflecting a higher overnight acuity mix.

Natalie Davis: Day only admissions increased by 3.8%, boosted by new surgical centers at Charlestown and Caloundra, while overnight IPS RTs increased by 3%, reflecting a higher overnight acuity mix. Moving to slide 12, our strategic use of data insights and the uplift in our sales force are supporting growth in the number of Visiting Medical Officers or doctor partners, our share of complex therapeutic activity, and improved theater utilization. We achieved 3.3% growth in meeting VMOs enabled by improved catchment-based data insights. Our theater utilization improved to 70% in FY26 from 69% in FY25, as we opened an additional 22 new theaters during the 12-month period, indicating our success in increasing utilization of theaters at our key sites. We increased robotics usage supported by improved robotics utilization tracking. Slide 13.

Speaker #1: Moving to slide 12, our strategic use of data insights and the uplift in our sales force are supporting growth in the number of visiting medical officers.

Speaker #1: Our doctor partners increased our share of complex therapeutic activity and improved utilization. We achieved 3.3% growth in admitting VMOs, enabled by improved catchment-based data insights. Our theater utilization improved to 70% in FY26 from 69% in FY25, as we opened an additional 22 new theaters during the 12-month period.

Speaker #1: Indicating our success in increasing utilization of theaters at our key sites. And we increased robotics usage, supported by improved robotics utilization tracking. Slide 13.

Speaker #1: Total capex was $365 million, which was flat on the prior period and below the original forecast of $410 to $440 million, reflecting lower-than-forecast development spend as we focus on improving utilization of existing facilities and the timing of reimbursements from landlords of $30.8 million, primarily associated with the development of key lease sites Peninsula and Ballura.

Natalie Davis: Total CapEx was AUD 365 million, which was flat on the prior period and below the original forecast of AUD 410 million to AUD 440 million, reflecting lower than forecast development spend as we focus on improving utilization of existing facilities, and the timing of reimbursements from landlords of AUD 30.8 million, primarily associated with the development of key lease sites, Peninsula and Ballina. Our development investment in Australia remains focused on increasing procedural capacity in major hospitals within growth corridors. In total, we opened 22 theater and procedure rooms during the period. The increase in routine and maintenance CapEx reflects an investment in existing facilities to ensure strategically located sites are fit for purpose in the future and continue to meet high clinical, safety, and amenity standards. In financial year 2027, we are planning to open 11 new theaters, cath labs at sites including our largest hospital, Hollywood in Perth and St. George in Sydney.

Speaker #1: Our development investment in Australia remains focused on increasing procedural capacity in major hospitals within growth corridors. In total, we opened 22 theatre and procedure rooms during the period.

Speaker #1: The increase in routine and maintenance CapEx reflects an investment in existing facilities to ensure strategically located sites are fit for purpose in the future.

Speaker #1: And continue to meet high clinical safety and amenity standards. In financial year '27, we're planning to open 11 new theaters and cath labs at sites including our largest hospital, Hollywood in Perth, and St.

Natalie Davis: In financial year 2027, we are planning to open 11 new theaters, cath labs at sites including our largest hospital, Hollywood in Perth and St. George in Sydney.

Speaker #1: George in Sydney. We're in the final phase of our Wurangel private expansion, including our recently opened emergency department. In financial year '27, we'll continue with our key programs to drive the transformation of the business, with our initiatives underpinned and enabled by our investment in data, technology, and AI.

Natalie Davis: We are in the final phase of our Warringal Private expansion, including our recently opened emergency department. In financial year 2027, we will continue with our key programs to drive the transformation of the business with our initiatives underpinned and enabled by our investment in data technology and AI. We have defined our technology roadmap with priorities including the upgrade of our patient administration system, which will be part of our broader revenue cycle management transformation to speed up cash collection, improve accuracy to reduce rework, and streamline administrative manual processes. A smart rostering system and MyTime to enable flexible working, reduce administrative burden for our hospital teams, and improve effectiveness of our rosters. Moving to slide 15 and the outlook. As we continue to focus on delivery of our multi-year transformation, Australia is targeting incremental year-on-year EBIT growth, both including and excluding the NatCap acquisition.

Speaker #1: We've defined our technology roadmap, with priorities including the upgrade of our patient administration system, which will be part of our broader revenue cycle management transformation. This will help speed up cash collection, improve accuracy to reduce rework, and streamline administrative manual processes.

Speaker #1: And a smart rostering system and team map to enable flexible working, reduce administrative burden for our hospital teams, and improve effectiveness of our rosters.

Speaker #1: Moving to slide 15 and the outlook. As we continue to focus on delivery of our multi-year transformation, Australia is targeting incremental year-on-year EBIT growth, both including and excluding the NATCAP acquisition, and margin expansion driven by activity growth, improved capacity utilization, revenue indexation in line with cost indexation, operational improvement initiatives and including a $10 to $15 million increase in investment in IT, technology, and transformation.

Natalie Davis: Margin expansion driven by activity growth, improved capacity utilization, revenue indexation in line with cost indexation, operational improvement initiatives, and including a AUD 10 million to AUD 15 million increase in investment in IT, technology, and transformation. National Capital is expected to be underlying EPS accretive in the first 12 months of ownership. Transition operating costs are expected to be in the range of AUD 9 million to AUD 11 million in financial year 2027. Total CapEx for Australia is expected to be AUD 380 million to AUD 410 million, inclusive of NatCap. Moving to the UK region on slide 16, where both our UK hospitals and Elysium businesses are focused on performance improvement plans to mitigate weakness in NHS funding. Pleasingly, both businesses delivered an increase in underlying EBIT and were net cash flow positive. UK hospitals focused on acuity, private activity growth, and cost management to mitigate NHS funding headwinds from Q2.

Speaker #1: National Capital is expected to be underlying EPS accretive in the first 12 months of ownership. Transition operating costs are expected to be in the range of $9 to $11 million in financial year '27.

Speaker #1: Total capex for Australia is expected to be $380 to $410 million, inclusive of NATCAP. Moving to the UK region, on slide 16, where both our UK hospitals and Alicia and businesses are focused on performance improvement plans to mitigate weakness in NHS funding.

Speaker #1: Pleasingly, both businesses delivered an increase in underlying EBIT and were net cash flow positive. UK hospitals focused on acuity, private activity growth, and cost management to mitigate NHS funding headwinds from Q2.

Natalie Davis: UK hospitals focused on acuity, private activity growth, and cost management to mitigate NHS funding headwinds from Q2. The Elysium turnaround is beginning to gain traction under the leadership of new CEO Joe O'Connor in weak market conditions through a focus on right-sizing our services to local demand and cost reduction. Moving to each business in turn. Beginning on slide 17, our UK hospitals delivered underlying EBIT growth of 10.3% in constant currency, successfully mitigating an 8% decline in NHS activity and tariff indexation below cost growth. The result was achieved through a focus on higher complexity NHS work and private activity growth of 2.9%, which drove a 6.7% increase in average revenue per admission. The business focused on disciplined cost management program, resulting in labor cost as a percent of revenue declining by 30 basis points and the EBIT margin improving 80 basis points. Turning to slide 18.

Speaker #1: The Alisium turnaround is beginning to gain traction under the leadership of new CEO Joe O'Connor, in weak market conditions, through a focus on right-sizing our services to local demand and cost reduction.

Natalie Davis: The Elysium turnaround is beginning to gain traction under the leadership of new CEO Joe O'Connor in weak market conditions through a focus on right-sizing our services to local demand and cost reduction. Moving to each business in turn. Beginning on slide 17, our UK hospitals delivered underlying EBIT growth of 10.3% in constant currency, successfully mitigating an 8% decline in NHS activity and tariff indexation below cost growth. The result was achieved through a focus on higher complexity NHS work and private activity growth of 2.9%, which drove a 6.7% increase in average revenue per admission. The business focused on disciplined cost management program, resulting in labor cost as a percent of revenue declining by 30 basis points and the EBIT margin improving 80 basis points. Turning to slide 18.

Speaker #1: Moving to each business in turn, beginning on slide 17. Our UK hospitals delivered underlying EBIT growth of 10.3% in constant currency, successfully mitigating an 8% decline in NHS activity and tariff indexation below cost growth.

Speaker #1: The result was achieved through a focus on higher-complexity NHS work and private activity growth of 2.9%, which drove a 6.7% increase in average revenue per admission.

Speaker #1: The business focused on a disciplined cost management program, resulting in labor costs as a percent of revenue declining by 30 basis points and the EBIT margin improving by 80 basis points.

Speaker #1: Turning to slide 18, we expect Ramsay UK to deliver EBIT growth in financial year 2027, with a focus on driving higher acuity and growth in private medical insurance and self-pay activity.

Natalie Davis: Now we expect Ramsay UK to deliver EBIT growth in financial year 2027 with the focus on driving higher acuity and growth in private medical insurance and self-pay activity. Ongoing delivery of efficiency transformation programs across finance and operations, including rostering initiatives and creation of finance shared services hubs, and continuing to work closely with local and national NHS stakeholders to attract NHS work and target acuity. NHS tariff guidance for the year beginning 1 April 2026 has been recently lifted to 1.24%. The backdated amount related to 1 April 2026 to 30 June 2026 will be included in the financial year 2027 results. Turning to slide 19, Elysium's turnaround plan gained traction in the H2 of financial year 2026, delivering a 43% growth in underlying EBIT for the year.

Speaker #1: Ongoing delivery of efficiency transformation programs across finance and operations, including rostering initiatives and creation of finance shared services hubs, and continuing to work closely with local and national NHS stakeholders to attract NHS work and target acuity.

Speaker #1: NHS tariff guidance for the year beginning 1st of April 2026 has been recently lifted to 1.24%. The backdated amount related to 1st of April 2026 to 30th of June 2026 will be included in the financial year 2027 results.

Speaker #1: Turning to slide 19. Alisium's turnaround plan gained traction in the second half of financial year '26, delivering a 43% growth in underlying EBIT for the year.

Speaker #1: This was achieved through site and ward closures to match local demand, reduce central and agency costs, including a reduction in FTE, and an average fee uplift of 4.4%, reflecting the complexity of patient services.

Natalie Davis: This was achieved through site and ward closures to match local demand, reduced central and agency costs, including a reduction in FTE, and an average fee uplift of 4.4%, reflecting complexity of patient services. There was also a strong focus on working capital and a reduction in debtors, which combined with reduced CapEx drove positive cash flow. Elysium's reported result includes a net AUD 13.2 million of costs associated with its restructure, including site impairments of net AUD 9.9 million. Our ongoing focus for Elysium on slide 20 is to continue delivering on the turnaround plan, which includes increasing conversion rates of new patient opportunities, including a focus on complex recovery services, further improvements to labor mix, including reducing agency costs further, negotiating with payors for appropriate fee uplifts reflecting service complexity. We're targeting EBIT growth in financial year 2027 as the business turnaround continues to progress.

Speaker #1: There was also a strong focus on working capital and a reduction in debtors, which, combined with reduced capex, drove positive cash flow. Alisium's reported result includes a net $13.2 million of costs associated with its restructure, including site impairments of net $9.9 million.

Speaker #1: Our ongoing focus for Alisium, on slide 20, is to continue delivering on the turnaround plan, which includes increasing conversion rates of new patient opportunities, including a focus on complex recovery services; further improvements to labor mix, including reducing agency costs; and further negotiating with payers for appropriate fee uplifts reflecting service complexity.

Speaker #1: We're targeting EBIT growth in financial year '27 as the business turnaround continues to progress. Turning now to Europe, and on slide 21, we're on track with our separation plans for Ramsay Santé to support long-term value creation for Ramsay shareholders as we move towards a Ramsay shareholder vote in late November.

Natalie Davis: Turning now to Europe, on slide 21, we're on track with our separation plans for Ramsay Santé to support long-term value creation for Ramsay shareholders as we move towards a Ramsay shareholder vote in late November. The business has continued to focus on performance improvement in both France and the Nordics. Moving to slide 22, despite funding headwinds in France, Ramsay Santé reported a reduced underlying loss in Europe. The Nordics region delivered a strong result driven by Sweden's performance improvement, which included the impact of the new Sankt Göran eight-year contract and improved performance in its other services, including proximity care. France has multiple work streams on foot focused on operational efficiency, which partially mitigated the funding shortfall. On slide 23.

Speaker #1: The business has continued to focus on performance improvement in both France and the Nordics. Moving to slide 22. And despite funding headwinds in France, Ramsay Santé reported a reduced underlying loss in Europe.

Speaker #1: The Nordics region delivered a strong result, driven by Sweden's performance improvement, which included the impact of the new St. Goran eight-year contract and improved performance in its other services, including proximity care.

Speaker #1: France has multiple work streams on foot focused on operational efficiency, which partially mitigated the funding shortfall. On slide 23, Ramsay Santé's focus in financial year '27 will include cost control, efficiency, and cash generation, growing profitable activity including growth in Sweden and the full-year impact of the new St.

Natalie Davis: Ramsay Santé's focus in financial year 2027 will include cost control, efficiency, and cash generation, growing profitable activity, including growth in Sweden and the full year impact of the new Sankt Göran contract, and sustained advocacy for fair tariff outcomes in France. Turning to slide 24. The proposed separation of Ramsay Santé is well on track with the demerger meeting for the shareholder vote progressing towards 24 November 2026. The benefits of the demerger proposal include, it simplifies Ramsay's portfolio, enabling us to focus on transformation and growth potential of our core Australian hospitals business. It also simplifies our reported financial profile through deconsolidation of Ramsay Santé from Ramsay's financial statements. Demerger should improve Ramsay Santé's focus, an already established, independently managed, and publicly listed business to continue to pursue its European-focused strategy and transformation.

Speaker #1: Goran contracted and sustained advocacy for fair tariff outcomes in France. Turning to slide 24, the proposed separation of Ramsay Sante is well on track, with a demerger meeting for the shareholder vote progressing towards November 24, 2026.

Speaker #1: The benefits of the demerger proposal include that it simplifies Ramsay's portfolio, enabling us to focus on the transformation and growth potential of our core Australian hospitals business.

Speaker #1: It also simplifies our reported financial profile through deconsolidation of Ramsay Santé from Ramsay's financial statements. The demerger should improve Ramsay Santé's focus as an already established, independently managed, and publicly listed business, allowing it to continue to pursue its European-focused strategy and transformation.

Speaker #1: There is limited separation complexity, given Ramsay Santé already operates independently of Ramsay, including separate financing and balance sheet arrangements. And it gives our shareholders the opportunity to retain an ownership interest in Ramsay Santé.

Natalie Davis: There is limited separation complexity given Ramsay Santé already operates independently of Ramsay, including separate financing and balance sheet arrangements. It gives our shareholders the opportunity to retain ownership interest in Ramsay Santé. Assuming shareholders vote in favor of the separation, Ramsay Santé will be treated as a discontinued business line item in our financial year 2027 H1 and full year results. Costs associated with the demerger will be detailed in the scheme booklet. Moving to sustainability on slide 25. Ramsay remains on track with both our 2030 Scope 1 and 2 greenhouse gas emissions targets and our 2028 supplier engagement targets. We are committed to working with our partners to understand and address emissions across our supply chain. However, our progress in this area is limited to how quickly our suppliers are able to reduce and manage their own Scope 1 and 2 emissions.

Speaker #1: Assuming shareholders vote in favor of the separation, Ramsay Santé will be treated as a discontinued business line item in our financial year '27 half- and full-year results.

Speaker #1: Costs associated with the demerger will be detailed in the scheme booklet. Moving to sustainability on slide 25, Ramsay remains on track with both our 2030 Scope 1 and 2 greenhouse gas emissions targets and our 2028 supplier engagement targets.

Speaker #1: We're committed to working with our partners to understand and address emissions across our supply chain. However, our progress in this area is limited to how quickly our suppliers are able to reduce and manage their own Scope 1 and Scope 2 emissions.

Speaker #1: As a result, we revised our long-term net zero greenhouse gas emission targets, taking into account the current and anticipated commercial and operating environment. We'll now target net zero Scope 1 and 2 emissions by equity share by 2050 instead of 2040, and Ramsay UK and Elysium Healthcare will target net zero Scope 3 emissions by 2050.

Natalie Davis: As a result, we have revised our long-term net zero greenhouse gas emission targets, taking into account the current and anticipated commercial and operating environment. We will now target net zero Scope 1 and 2 emissions by equity share by 2050 instead of 2040. Ramsay UK and Elysium Healthcare will target net zero Scope 3 emissions by 2050. Our net zero Scope 3 group target will be considered following engagement with our suppliers in line with our near-term targets. I will now hand over to Anthony to provide a more detailed look at our financial performance.

Speaker #1: Our net zero Scope 3 group target will be considered following engagement with our suppliers, in line with our near-term targets. I'll now hand over to Anthony to provide a more detailed look at our financial performance.

Speaker #1: Thank you, Natalie. Good morning, everyone. Moving to our group financial performance on slide 27: It's important to note that all regions reported EBIT growth in local currency, reflecting positive transformation momentum in Australia and a focus on operational improvement programs across all regions.

Anthony Neilson: Thank you, Natalie. Good morning, everyone. Moving to our group financial performance on slide 27. It is important to note that all regions reported EBIT growth in local currency, reflecting positive transformation momentum in Australia and a focus on operational improvement programs across all regions. This drove a 30 basis point improvement in EBIT margins to 6.2%, with cost discipline resulting in a 20 basis point improvement in employee costs as a percentage of revenue, and a 10 basis point improvement in medical supplies and consumables as a percentage of revenue. Underlying EPS grew 27% in constant currency. The underlying effective tax rate was approximately 35%, consistent with our guidance. Reported tax was slightly higher at approximately 37%. These rates are high relative to corporate tax rates in the jurisdictions Ramsay operates, reflecting the impact of French CVAE, which is a corporate value-add tax.

Speaker #1: This drove a 30 basis point improvement in EBIT margins to 6.2%, with cost discipline resulting in a 20 basis point improvement in employee cost as a percentage of revenue, and a 10 basis point improvement in medical supplies and consumables as a percentage of revenue.

Speaker #1: Underlying EPS grew 27% in constant currency. The underlying effective tax rate was approximately 35%, consistent with our guidance. Reported tax was slightly higher at approximately 37%.

Speaker #1: These rates are high relative to corporate tax rates in the jurisdictions Ramsay operates, reflecting the impact of French CVAE, which is a corporate value-added tax, and Ramsay Santé's loss before tax result in the FY26 period.

Anthony Neilson: Ramsay Santé's loss before tax result in the FY26 period. The final dividend of AUD 0.485 per share brings the full-year dividend to AUD 0.91 per share, up 13.8% from FY25, with a payout ratio of 60.3% of underlying earnings. Turning to slide 28, we continue to maintain a strong focus on cash generation. Operating cash flow reflects a 46% improvement in the funding group, coming from Australia and both UK businesses, offset by a negative working capital variance in Ramsay Santé, primarily reflecting the timing of payments from the French government versus the prior period. The decline in CapEx spend reflects capital discipline in development expenditures in Australia and the UK operations. This resulted in free cash flow of AUD 697 million, which was relatively flat compared to the prior year.

Speaker #1: The final dividend of 48.5 cents per share brings the full-year dividend to 91 cents per share, up 13.8% from FY25, with a payout ratio of 60.3% of underlying earnings.

Speaker #1: Turning to slide 28. We continue to maintain a strong focus on cash generation. Operating cash flow reflects a 46% improvement in the funding group coming from Australia and both UK businesses, offset by a negative working capital variance in Ramsay Santé, primarily reflecting the timing of payments from the French government versus the prior period.

Speaker #1: The declining capex spend reflects capital discipline in development expenditures in Australia and the UK operations. This resulted in free cash flow of $697 million, which was relatively flat compared to the prior year.

Speaker #1: Net cash inflow from divestments mainly relates to the sale and leaseback of four sites in France, and the sale of our hot dog investment in Australia.

Anthony Neilson: Net cash inflow from divestments mainly relates to sale and leaseback of 4 sites in France, and the sale of a HotDoc investment in Australia. Dividends paid increased, reflecting the suspension of the dividend reinvestment plan for the final dividend in FY25. Moving to slide 29, our consolidated balance sheet remains stable, with key changes relating to the net impact of currency translation on the balance sheet was approximately AUD 300 million reduction in net assets. An underlying increase in property, plant, and equipment includes the completion of developments in Australia, partially offset by the restructure of portfolios in all regions. Working capital movements mainly relate to movements in Ramsay Santé associated with the timing of government receivables, and the Elysium portfolio restructure resulted in a AUD 300 million reduction to the right-of-use assets. ROCE increased 110 basis points to 11% for the group.

Speaker #1: Dividends paid increased, reflecting the suspension of the dividend reinvestment plan for the final dividend in FY25. Moving to slide 29. Our consolidated balance sheet remains stable, with key changes relating to the net impact of currency translation on the balance sheet, which was approximately a $300 million reduction in net assets. The underlying increase in property, plant, and equipment includes the completion of developments in Australia, partially offset by the restructure of portfolios in all regions.

Speaker #1: Working capital movements mainly relate to movements in Ramsay Santé associated with the timing of government receivables, and the Alisium portfolio restructure resulted in a $300 million reduction to the right-of-use assets.

Speaker #1: Roachy increased 110 basis points to 11% for the group. Turning to slide 30 and the funding group, which excludes Ramsay Santé, delivered underlying NPAC growth of 17.9% to $398.4 million, with a 5.2% increase in revenue at constant currency.

Anthony Neilson: Turning to slide 30, the funding group, which excludes Ramsay Santé, delivered underlying NPAT growth of 17.9% to AUD 398.4 million, with a 5.2% increase in revenue in constant currency. The result was driven by underlying EBIT growth across all businesses, with an improved performance in Australia of +11.2% in underlying EBIT, a +10.3% underlying EBIT contribution from our UK acute business, and a +43.5% increase in underlying EBIT for Elysium. The result included a 7.3% increase in depreciation, reflecting the completion of major projects in Australia over the period, higher financing costs reflecting the increase in base rates over the period and reduced hedging compared to the prior period, and an underlying tax rate of approximately 29%. ROCE for the funding group increased 124 basis points to 14.8%.

Speaker #1: The result was driven by underlying EBIT growth across all businesses, with an improved performance in Australia of plus 11.2% in underlying EBIT, a plus 10.3% underlying EBIT contribution from our UK acute business, and a plus 43.5% increase in underlying EBIT for Alisium.

Speaker #1: The result included a 7.3% increase in depreciation, reflecting the completion of major projects in Australia over the period. Higher financing costs reflected the increase in base rates over the period and reduced hedging compared to the prior period.

Speaker #1: And an underlying tax rate of approximately 29%. ROACE for the funding group increased 124 basis points to 14.8%. Moving to slide 31, the funding group's leverage has decreased to 1.83 times and remains well below our target range of 2.5 times.

Anthony Neilson: Moving to slide 31, the funding group's leverage has decreased to 1.83 times and remains well below our target range of 2.5 times. Interest cover is also strong at 8.94 times. All businesses in the funding group were net cash flow positive for the year, showing a strong focus on improving cash flow, working capital management, capital allocation, and returns across the funding group. We maintain liquidity of AUD 1.066 billion, some of which will be utilized for the AUD 251 million acquisition of NatCap next week. Leverage is expected to continue to be below our target range post this acquisition. The weighted average cost of debt in FY27 is currently expected to be approximately 5.5%, and approximately 60% of our funding group debt is hedged for FY27. In FY27, total net interest costs inclusive of AASB 16 lease costs for the funding group are forecast to be AUD 280 to AUD 300 million.

Speaker #1: Interest cover is also strong at 8.94 times. All businesses in the funding group were net cash flow positive for the year, showing a strong focus on improving cash flow, working capital management, capital allocation, and returns across the funding group.

Speaker #1: We maintain liquidity of $1.066 billion, some of which will be utilized for the $251 million acquisition of NATCAP next week. Leverage is expected to continue to be below our target range post this acquisition.

Speaker #1: The weighted average cost of debt in FY27 is currently expected to be approximately five and a half percent. Our funding group debt is hedged for FY27.

Speaker #1: In FY27, total net interest costs, inclusive of AASB 16 lease costs for the funding group, are forecast to be $280 to $300 million.

Anthony Neilson: In FY27, total net interest costs inclusive of AASB 16 lease costs for the funding group are forecast to be AUD 280 to AUD 300 million.

Speaker #1: On slide 32, Ramsay Santé remains well supported by its own funding arrangements. In July 2026, they announced the completion of a refinancing of €1.75 billion of senior debt, extending their tenor by two years to 2033 and including a change of control provision, which is consistent with our proposed separation.

Anthony Neilson: On slide 32, Ramsay Santé remains well supported by its own funding arrangements. In July 2026, they announced the completion of a refinancing of EUR 1.75 billion of senior debt, extending their tenor by 2 years to 2033 and including a change of control provision which is consistent with our proposed separation. Its bank leverage ratio was 4.7 times at 30 June, and liquidity stood at EUR 487 million, comprising EUR 185 million in undrawn bank facilities and EUR 302 million in cash. Turning to slide 33, as I have shown above in the results, our focus on improving capital management and cash flows delivered improved returns and lowered leverage for the funding group over the period. Disciplined cost management across the funding group resulted in underlying EBITDAR margins of +60 basis points and underlying employee benefits as a percentage of revenue declining 20 basis points.

Speaker #1: Its bank leverage ratio was 4.7 times at 30 June, and liquidity stood at €487 million, comprising €185 million in undrawn bank facilities and €302 million in cash.

Speaker #1: Turning to slide 33. As I have shown above in the results, our focus on improving capital management and cash flows delivered improved returns and lowered leverage for the funding group over the period.

Speaker #1: Disciplined cost management across the funding group resulted in underlying EBITDA margins increasing by more than 60 basis points, and underlying employee benefits as a percentage of revenue declined by 20 basis points.

Speaker #1: Activities over the period included a focus on revenue cycle management and improved working capital across all businesses, with cash conversion in Australia improving by four days over the period and further work to do.

Anthony Neilson: Activities over the period included a focus on revenue cycle management and improved working capital across all businesses, with cash conversion in Australia improving by 4 days over the period and further work to do. Focus on utilization of facilities and portfolio optimization resulted in a decrease in CapEx and improved capital allocation across the business. Cash generation from portfolio optimization will continue in Australia and Elysium. These activities and focus on improved results drove an improvement in the funding group ROCE to 14.8%. Turning to slide 34, group CapEx was AUD 734.2 million, a decrease of 6.1% in constant currency, reflecting disciplined development spend in Australia focused on expanding procedural capacity, lower CapEx in the UK and flat in Europe, reflecting our capital discipline in the current funding environment, mainly due to lower development and growth expenditures.

Speaker #1: Focus on utilization of facilities and portfolio optimization resulted in decreasing capex and improved capital allocation across the business. Cash generation from portfolio optimization will continue in Australia and Alisium.

Speaker #1: These activities and focus on improved results drove an improvement in the funding group Roachy to 14.8%. Turning to slide 34, group capex was $734.2 million, a decrease of 6.1% in constant currency, reflecting disciplined development spend in Australia focused on expanding procedural capacity, lower capex in the UK, and flat in Europe, reflecting our capital discipline in the current funding environment, mainly due to lower development and growth expenditures.

Speaker #1: Routine and compliance spend was increased in Australia to ensure our hospitals are future-fit. Our high clinical quality and safety standards, as well as the amenity of our hospitals, are maintained.

Anthony Neilson: Routine and compliance spend was increased in Australia to ensure our hospitals are future-fit, our high clinical quality and safety standards, and the amenity of our hospitals is maintained. Our forecast range for funding group CapEx in FY27 is AUD 480 to AUD 520 million, consistent with the FY26 spend of AUD 488 million in constant currency. Overall, we made good progress from a financial perspective in FY26, with the company in a strong financial position to continue to deliver in FY27. With that, I will now hand back to Natalie for the outlook and closing remarks.

Speaker #1: Our forecast range for funding group capex in FY27 is $480 million to $520 million, consistent with the FY26 spend of $488 million in constant currency.

Speaker #1: Overall, we made good progress from a financial perspective in FY26, with the company in a strong financial position to continue to deliver in FY27.

Speaker #1: With that, I'll now hand back to Natalie for the outlook and closing remarks.

Speaker #2: Thanks, Anthony. And turning to slide 36—in closing, I want to reiterate our commitment to continuing delivery of our strategic priorities. In FY27, we expect to continue the positive momentum, with EBIT growth expected in the Australia and UK businesses.

Natalie Davis: Thanks, Anthony. Turning to slide 36. In closing, I want to reiterate our commitment to continuing delivery of our strategic priorities. In FY27, we expect to continue the positive momentum with EBITDA growth expected in Australia and the UK businesses. We are looking forward to completing the National Capital acquisition, caring for the local community, and welcoming the team to Ramsay next week. We are preparing for the proposed separation of Ramsay Santé in December, subject to Ramsay shareholder vote on 24 November. The group executive will host an investor day on 30 November to share our progress and plans as we continue to evolve Ramsay for the future. I am proud of the progress we have made as a team and our unwavering commitment to providing excellent care for our patients. Thank you for joining us, and we will now open the floor for questions.

Speaker #2: We're looking forward to completing the National Capital acquisition, caring for the local community, and welcoming the team to Ramsay next week. We're preparing for the proposed separation of Ramsay Santé in December, subject to Ramsay shareholder vote on the 24th of November.

Speaker #2: The Group Executive will host an Investor Day on the 30th of November to share our progress and plans as we continue to evolve Ramsay for the future.

Speaker #2: I'm proud of the progress we've made as a team and our unwavering commitment to providing excellent care for our patients. Thank you for joining us, and we'll now open the floor for questions.

Speaker #3: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today will come from David Lowe of UBS. Please go ahead.

Speaker #3: Your first question today will come from David Lowe of UBS. Please go ahead.

Speaker #4: Thank you for taking my questions. Just starting with slide 12 and the utilization trends. I can see that you've got much higher utilization in the top five sites.

David Lowe: Thank you for taking my questions. Just starting with slide 12 and the utilization trends. I can see that you've got much higher utilization in the top five sites. Where do you think you can take the utilization to? What's maximum? Is it possible to get the lesser sites up to levels that you're seeing in the top five hospitals?

David Low: Thank you for taking my questions. Just starting with slide 12 and the utilization trends. I can see that you've got much higher utilization in the top five sites. Where do you think you can take the utilization to? What's maximum? Is it possible to get the lesser sites up to levels that you're seeing in the top five hospitals?

Speaker #4: Where do you think you can take the utilization to? I mean, what's the maximum, and is it possible to get the lesser sites up to levels that you're seeing in the top five hospitals?

Speaker #2: Thanks for the question. Yes, if you look at our distribution of utilization across all of our sites, what you see is we have five sites, and they tend to be very large hospitals that have utilization in that range of about 80 to 85 percent.

Natalie Davis: Thanks for the question. Yes. If you look at our distribution or utilization across all of our sites, what you see is we have five sites, and they tend to be our very large hospitals that have utilization in that range of about 80% to 85%. That's broadly in line with what you would see as best practice around the world in the sector. So our focus has really been particularly in our large hospitals that are often adjacent to a public hospital and attract that complexity of work that we're known for. Our focus has really been particularly at those sites, trying to attract more doctors and serve more patients and increase utilization of those hospitals. That's in areas like cardiology and cancer care and orthopedics.

Speaker #2: And that's broadly in line with what you would see as best practice around the world in the sector. So our focus has really been, particularly in our large hospitals that are often adjacent to a public hospital and attract that complexity of work that we're known for.

Speaker #2: Our focus has really been, particularly at those sites, trying to attract more doctors and serve more patients and increase utilization of those hospitals. And that's in areas like cardiology, cancer care, and orthopedics.

Speaker #2: So that 80 to 85 percent would be our kind of aspiration for a really good level of utilization in one of our major hospitals.

Natalie Davis: That 80% to 85% would be our aspiration for a really good level of utilization in one of our major hospitals. When we get close to that's when we consider increasing our procedural capacity.

Speaker #2: And you know, when we get close to that, that's when we consider increasing our procedural capacity.

Speaker #4: Okay, great. Thanks for that. So it would seem that at the top five sites, you're quite close to needing additional capacity.

David Lowe: Okay, great. Thanks for that. So it would seem that at the top 5 sites, you're quite close to needing additional capacity.

David Low: Okay, great. Thanks for that. So it would seem that at the top 5 sites, you're quite close to needing additional capacity.

Natalie Davis: Well, some of those sites we're already in the process of adding capacity. You would have seen in the presentation later on, we talk about where we're adding sites. We're adding theaters or cath labs over the next 12 months. And they include a focus on some of our major sites like Westmead, St. George, and Hollywood. We're adding 2 theaters and 2 cath labs. So we've already been effectively prioritizing our capital investment based on levels of utilization.

Speaker #2: Well, some of those sites we're already in the process of adding capacity. So, as you would have seen in the presentation, later on we talk about where we're adding sites—we're adding theatres, or cath labs, over the next 12 months.

Speaker #2: And they include a focus on some of our major sites like Westmead, St. George, and Hollywood. We're adding two theatres and two cath labs.

Speaker #2: So we've already been effectively prioritizing our capital investment based on levels of utilization.

Speaker #4: Okay, thanks. And just the other topic I wanted to touch on was the OPEX, the IT OPEX, that you've laid out—the $10 to $15 million.

David Lowe: Okay, thanks. And just the other topic I wanted to touch on was the OpEx, the IT OpEx that you've laid out for AUD 10 million to AUD 15 million. Can you talk a little more about what you're spending on? Will that be a headwind to margins effectively, or do you expect that that investment will pay back quickly enough that it would be offset?

David Low: Okay, thanks. And just the other topic I wanted to touch on was the OpEx, the IT OpEx that you've laid out for AUD 10 million to AUD 15 million. Can you talk a little more about what you're spending on? Will that be a headwind to margins effectively, or do you expect that that investment will pay back quickly enough that it would be offset?

Speaker #4: Can you talk a little bit more about, you know, what you're spending on? Will that be a headwind to margins, effectively, or do you expect that investment to pay back quickly enough that it would be offset?

Speaker #2: Yes. So what we've done with our technology roadmap is very clearly defined a sequenced approach. So we're thoughtfully investing in technology. We know we need to invest in technology to enable our clinicians in our hospitals to reduce their administrative burden and to improve our processes.

Natalie Davis: Yeah. So what we've done with our technology roadmap is very clearly defined a sequenced approach. So we're thoughtfully investing in technology. We know we need to invest in technology to enable our clinicians in our hospitals to reduce their administrative burden to improve our processes. And we're particularly prioritizing two things at the moment. One, effectively, is an upgrade of our patient administration system, which is the backbone to revenue cycle management. So that starts with the patient admission itself, and then goes all the way through to coding and sending the bill out. So that needs to be upgraded, and that will really help us in terms of the speed at which that process works, and also make it much less manual than it is today and free up time for our clinicians. So we will get started on that.

Speaker #2: And we're particularly prioritizing two things at the moment. One, effectively, is an upgrade of our patient administration system, which is the backbone to revenue cycle management.

Speaker #2: So that, you know, starts with the patient admission itself and then goes all the way through to coding and sending the bill out. So that needs to be upgraded, and that will really help us in terms of the speed at which that process works.

Speaker #2: And also make it much less manual than it is today, and free up time for our clinicians. So, we will get started on that.

Speaker #2: And you know, that is quite a big system upgrade, and we'll do that progressively, hospital by hospital. So it'll take a while for that to translate into benefits.

Natalie Davis: That is quite a big system upgrade, and we will do that progressively hospital by hospital. So it will take a while for that to translate into benefits, but those benefits are significant. At the same time, we are focusing on effectively a new smart rostering system for our team. We have a workforce of 35,000. We have effectively legacy systems that our NUMS are using to roster team members at the moment. It is probably the thing that takes up a lot of their time that, when I first joined Ramsay, I said very clearly from the NUMS that they would really appreciate a better way of doing that. So, that is another one which we will start implementing over the course of the next 12 months.

Speaker #2: But those benefits are significant. At the same time, we are focusing on implementing an effective new smart rostering system for our team. We have a workforce of 35,000.

Speaker #2: We have, effectively, legacy systems that our NUMs are using to roster team members at the moment. It's probably the thing that takes up a lot of their time. You know, when I first joined Ramsay, I heard very clearly from the NUMs that they would really appreciate a better way of doing that.

Speaker #2: So that's another one which we will start implementing over the course of the next twelve months. And again, these things will take time to fully implement because it's not just about the system.

Natalie Davis: Again, these things will take time to fully implement because it is not just about the system, it is about the change management and the processes around that. But we have thought very carefully around which investments to prioritize. We are working towards a plan where we can still invest in these investments, but also simultaneously continue to focus on delivering year-on-year margin growth.

Speaker #2: It's about the change management and the processes around that. But we have thought very carefully around which investments to prioritize and we are working towards a plan where we can still you know invest in these investments but also simultaneously continue to focus on delivering year on year margin growth.

Speaker #4: Great, thank you very much for that.

David Lowe: Great. Thank you very much for that.

David Low: Great. Thank you very much for that.

Speaker #3: The next question will come from Sasha Korean of Evans & Partners. Please go ahead.

Operator: The next question will come from Sasha Kriens of Evans and Partners. Please go ahead.

Speaker #4: Good morning. Thanks for taking my questions. I was hoping for a bit more color on the Australian EBIT growth outlook. You're talking about incremental growth, excluding net cap.

Sasha Kriens: Good morning. Thanks for taking my questions. I was hoping for a bit more color on the Australian EBIT growth outlook. You are talking about incremental growth excluding NetCap. I am just wondering how that compares to your language, in 2026 of EBIT momentum. It sounds like weaker growth, but I am just wondering whether I am reading that wrong. Maybe you could clarify.

Sacha Krien: Good morning. Thanks for taking my questions. I was hoping for a bit more color on the Australian EBIT growth outlook. You are talking about incremental growth excluding NetCap. I am just wondering how that compares to your language, in 2026 of EBIT momentum. It sounds like weaker growth, but I am just wondering whether I am reading that wrong. Maybe you could clarify.

Speaker #4: I'm just wondering how that compares to your language in FY26 about EBIT momentum. It sounds like weaker growth, but I'm just wondering whether I'm reading that wrong.

Speaker #4: So maybe you could clarify.

Speaker #2: I think we're not giving guidance to the level that you're asking for. So, you know, what we're saying is we've been focusing over the last 18 months really on building our transformation momentum, and we will continue to focus on those same initiatives that we've outlined today.

Natalie Davis: I think we are not giving guidance to the level that you are asking for. What we are saying is, we have been focusing over the last 18 months really on building our transformation momentum, and we will continue to focus on those same initiatives that we have outlined today. Really focusing on growth and targeting growth above market growth, and in particular in the high acuity areas that we are known for. We will continue to target revenue indexation in line with our cost indexation. We will continue on working on our own operational improvements, including procurement, and increasingly, as we implement our new system, a revenue cycle management process. We are working towards margin growth year on year in the Australian business.

Speaker #2: So, really focusing on growth and targeting growth above market growth, and in particular in the high acuity areas that we're known for. We'll continue to target revenue indexation in line with our cost indexation.

Speaker #2: And we'll continue working on our own operational improvements, including procurement, and increasingly as we implement our new system of revenue cycle management process.

Speaker #2: And so, we are working towards margin growth year on year in the Australian business. But we will be investing in a stronger business as well as we do that, and we've called out the $10 to $15 million increase in opex that we're planning to make for IT and technology spend over the next 12 months as part of that.

Natalie Davis: But we will be investing in a stronger business as well as we do that, and we have called out the AUD 10 to AUD 15 million increase in OpEx that we are planning to make for IT and technology spend over the next 12 months as part of that.

Speaker #4: Yep, okay, thanks. I'm just wondering if you could talk a little bit about the admissions trends in the second half. That surgical number of 4.1% looks a bit softer than the 5.4% in the first half.

Sasha Kriens: Yeah. Okay. Thanks. I am just wondering if you could talk a little bit about the admissions trends in the H2. That surgical number of 4.1% looks a bit softer than the 5.4% in the H1, but I think maybe you have made a couple of restatements there. If you could just talk about some of the trends in admissions in the H2 and whether you are still seeing strong growth as you saw in the H1.

Sacha Krien: Yeah. Okay. Thanks. I am just wondering if you could talk a little bit about the admissions trends in the H2. That surgical number of 4.1% looks a bit softer than the 5.4% in the H1, but I think maybe you have made a couple of restatements there. If you could just talk about some of the trends in admissions in the H2 and whether you are still seeing strong growth as you saw in the H1.

Speaker #4: But I think maybe you've made a couple of restatements there. So if you could just talk about some of the trends in admissions in the second half, and whether you're still seeing strong growth as you saw in the first half.

Speaker #2: Yes, so thank you very much for that question. You'll see in the footnote to that page that we've called out that we did reclassify some admissions that were made in the first half from surgical to medical.

Natalie Davis: Yeah. Thank you very much for that question. You will see in the footnote to that page that we did reclassify some admissions that were made in H1 from surgical to medical, and those were a part of the work that we do at Joondalup Public Campus, which is one of our biggest campuses. What you are seeing there for the year is more broadly reflective of what we also saw in H1 once we

Speaker #2: And those were a part of the work that we do at Jundalup Public Campus, which is, you know, one of our biggest campuses. So what you're seeing there for the year is more broadly reflective of what we also saw in the first half.

Speaker #2: Once we've accounted.

Sasha Kriens: Okay. That is all for me.

Sacha Krien: Okay. That is all for me.

Speaker #4: Okay. That's helpful.

Speaker #2: Does that help?

Natalie Davis: Does that help?

Speaker #4: Yep. That's great. Thank you.

Sasha Kriens: Yeah. That is great. Thank you.

Sacha Krien: Yeah. That is great. Thank you.

Operator: Your next question today will come from David Stanton of Jefferies. Please go ahead.

Speaker #3: Your next question today will come from David Stanton of Jefferies. Please go ahead.

Speaker #4: Good morning, team, and thanks very much for taking my questions. Perhaps we could focus on revenue growth for '27. Australia—you know, you saw very impressive revenue growth.

David Stanton: Good morning, team, and thanks very much for taking my questions. Perhaps we could focus on revenue growth for 2027. Australia, you saw very impressive revenue growth. Do you think you can match that, in percentage terms, that kind of growth level in 2027? Then perhaps I could follow up by asking the same questions for the UK, both the UK hospitals and Elysium.

Speaker #4: Do you think you can match that in percentage terms—you know, that kind of growth level in '27? And then perhaps I could follow up by asking the same questions for the UK.

Speaker #4: Both the UK hospitals and Elysium.

Speaker #2: So, revenue growth in the UK as well? Specifically?

Natalie Davis: So revenue growth in the UK as well, specifically?

Speaker #4: Yeah, sure. So, whether you—basically in the UK—whether you think you're going to see positive revenue growth in constant currency in '27 for both the UK and for Elysium, please?

David Stanton: Yeah, sure. So basically in the UK, whether you think you are going to see positive revenue growth in constant currency in 2027 for both the UK and for Elysium, please.

Speaker #2: Okay. So if I start with Australia so what you'll see in the revenue growth number there is broadly 8 percent revenue growth. And admissions growth on a like for like basis of around the 3 percent mark.

Natalie Davis: Okay. If I start with Australia, what you are seeing in the revenue growth number there is broadly 8% revenue growth, and admissions growth on a like-for-like basis of around the 3% mark. We have excluded the impact of Peel, but also the impact of The Border Cancer Hospital, which we handed back to the public earlier this year. The rest of the 8% growth, therefore, is accountable through both revenue indexation, which we are targeting effectively a revenue indexation in line with our cost indexation, as well as a focus on acuity of work, and the focus on the work that we do very well and we have high market share in, and that is what we do in our big major hospitals, so cardiology and orthopedics and cancer care in particular. That focus will continue.

Speaker #2: So we've excluded the impact of PO, but also the impact of the Order Cancer Hospital, which we handed back to the public earlier this year.

Speaker #2: And so, you know, the rest of the 8% growth, therefore, is accountable through both revenue indexation—which, you know, we're targeting effectively—revenue indexation in line with our cost indexation.

Speaker #2: As well as a focus on acuity of work, and, you know, the focus on the work that we do very well and where we have high market share, and that's what we do in our big major hospitals.

Speaker #2: So, cardiology and orthopedics, and cancer care in particular—so that focus will continue. Those components, effectively, will continue to be targeted into the next financial year, as we already are.

Natalie Davis: Those components, effectively, we will continue to target into the next financial year as we already are. We will continue to really focus on growth and specifically in the areas that I just mentioned. We are increasing our focus on our business development managers, who go out and talk to specialists about why they should choose Ramsay to perform their surgeries. There is a number of enhancements we continue to do in terms of the data we are providing our hospital teams around catchments and GP referral patterns. We continue to set an ambition for ourselves of growing above the market, particularly in the areas that we are focusing on. We will continue to aim for revenue indexation broadly in line with our cost growth. We also continue to target that acuity mix which supports that revenue line.

Speaker #2: So, we'll continue to really focus on growth, and specifically in the areas that I just mentioned. And, you know, we are increasing our focus on our business development managers, who go out and talk to specialists about why they should choose Ramsay to perform their surgeries.

Speaker #2: There are a number of enhancements we continue to make in terms of the data we're providing our hospital teams around catchments and GP referral patterns.

Speaker #2: And so, we continue to set an ambition for ourselves of growing above the market, particularly in the areas that we're focusing on. We will continue to aim for revenue indexation broadly in line with our cost growth.

Speaker #2: And we also continue to target that acuity mix, which supports that revenue line. If I turn to the UK, I'll speak to both businesses separately because they are quite different.

Natalie Davis: If I turn to the UK, I will speak to both businesses separately because it is quite different. In UK hospitals this year, we had a very strong start to the year, then we had the pullback of NHS funding from about November, December. The team managed that very well in terms of flexing the cost base towards that lower level of activity, but also focusing on private work, as well as making sure that the work we are doing for the NHS is high acuity. Again, those components support the revenue number you have seen today. When we look at the UK, at the moment in terms of the indicative activity plan that we have been given by the NHS for our hospitals, we are seeing growth there in those indicative activity plans.

Speaker #2: In UK hospitals this year, we had a very strong start to the year, and then we had the pullback of NHS funding from about November–December.

Speaker #2: And the team managed that very well in terms of flexing the cost base towards that lower level of activity, but also focusing on private work.

Speaker #2: As well as making sure that the work we're doing for the NHS is high acuity. So again, those components support the revenue number you've seen today.

Speaker #2: When we look at the UK at the moment, in terms of the indicative activity plans that we're being given by the NHS for our hospitals, we are seeing growth there in those indicative activity plans.

Speaker #2: But we will continue to focus on acuity, and we will continue to focus on private work. We think that's a significant opportunity for us, particularly in some of our hospitals that are in those commuter belts around the London area.

Natalie Davis: But we will continue to focus on acuity, and we will continue to focus on private work. We think that is a significant opportunity for us, particularly in some of our hospitals that are in those commuter belts around the London area. That we will continue to do. If there is any uncertainty on funding, we will continue to really make sure that we are flexing our cost base and focusing on efficiency so that we can deliver the EBIT growth that we have got in our outlook statement. With Elysium, we have experienced weak demand, and what we have done over the past 12 months is really right-sized our available beds, by geography, effectively, and by service line. We closed about 239 beds over the last 12 months. Broadly speaking, we are not planning on any more significant closures.

Speaker #2: So that will continue to do. And if there is any uncertainty on funding, we'll continue to really make sure that we're flexing our cost base and focusing on efficiency.

Speaker #2: So that we can deliver the EBIT growth that we've outlined in our outlook statement. With Elysium, we've experienced weak demand, and what we have done over the past 12 months is really right-sized our available beds by geography, effectively, and by service line.

Speaker #2: So, we closed about 239 beds over the last 12 months. Broadly speaking, you know, we're not planning on any more significant closures. We think we've probably done the most significant degree of right-sizing that we need to.

Natalie Davis: We think we've probably done the most significant degree of right-sizing that we need to. The focus now will be continuing to make sure that we're converting as many referrals as we're getting, and really developing differentiated services. We've started to do, effectively, personalized services for very complex patients. That's our complex recovery services that we've called out. We will continue with our turnaround plan and operational efficiency focus there as well.

Speaker #2: So, the focus now will be continuing to make sure that we're converting as many referrals as we're getting, and really developing differentiated services. So, we've started to do effectively personalized services for very complex patients.

Speaker #2: That's our complex recovery services that we've called out, and we will continue with our turnaround plan and operational efficiency focus there as well.

Speaker #4: Understood. So, I guess to put it in a nutshell, potentially maybe for Australia, that level of revenue growth is potentially a stretch target for '27.

David Stanton: Understood. I guess, put it in a nutshell, potentially, maybe Australia, that level of revenue growth is potentially a stretch target for 2027, what you did in 2026. It sounds like you are targeting sort of positive revenue growth for Elysium in the UK in 2027.

Speaker #4: What you did in 26 and it sounds like you know you are targeting sort of positive revenue growth for Elysium in the UK in 27.

Natalie Davis: I'll leave you to draw your own conclusions from what I've said, but I think I've given you a good idea of what we're trying to balance and how we're going to achieve the profit growth in those businesses.

Speaker #2: I'll leave you to draw your own conclusions from what I've said. But I think I've given you a good idea of what we're trying to balance and how we're going to achieve the profit growth in those businesses.

Speaker #4: Understood. Thank you.

David Stanton: Understood. Thank you.

Speaker #1: Your next question will come from Davin Delaney Finn of Goldman Sachs. Please go ahead.

Operator: Your next question will come from Davin Balenathan of Goldman Sachs. Please go ahead.

Speaker #5: Good morning, Natalie and Anthony. Thanks for your presentation. I just want to start on the Australian business and the EBIT margin improvement that you've guided to.

Davin Balenathan: Good morning, Natalie and Anthony. Thanks for your presentation. Just want to start on the Australian business and the EBIT margin improvement that you have guided to. Thinking about the building blocks there, from my perspective, it looks like the timing of capacity coming on. You did more openings in FY2026, and then there is less going to 2027. So I would think that should help your margins, just given it does take some time to ramp into those capacity. Then you have procurement savings that happen into FY2026. I assume that should continue into 2027. Then you have the Joondalup headwind that reduced in the second half, which I assume is going to help again into 2027. So I would think those three blocks are going to help your margins, but could you just comment on that?

Davin Thillainathan: Good morning, Natalie and Anthony. Thanks for your presentation. Just want to start on the Australian business and the EBIT margin improvement that you have guided to. Thinking about the building blocks there, from my perspective, it looks like the timing of capacity coming on. You did more openings in FY2026, and then there is less going to 2027. So I would think that should help your margins, just given it does take some time to ramp into those capacity. Then you have procurement savings that happen into FY2026. I assume that should continue into 2027. Then you have the Joondalup headwind that reduced in the second half, which I assume is going to help again into 2027. So I would think those three blocks are going to help your margins, but could you just comment on that?

Speaker #5: Thinking about the building blocks there, from my perspective it looks like the timing of capacity coming on—you did more openings in FY26, and then there’s less going into ’27.

Speaker #5: So, I would think that should help your margins, just given it does take some time to ramp into those capacities. And then you've got procurement savings that happen in to FY26.

Speaker #5: I assume that should continue into '27. And then you've got the June delay headwind that reduced in the second half, which I assume is going to help again into '27.

Speaker #5: So, I would think those three blocks are going to help your margins. But could you just comment on that? And then, secondly, are there any other key drivers we should be thinking about?

Davin Balenathan: Secondly, any other key drivers we should be thinking about?

Davin Thillainathan: Secondly, any other key drivers we should be thinking about?

Speaker #2: Okay, thank you. That's a very thoughtful question. So, if I start on capacity utilization—yes, you're right, we did add 22 theatres over the last year.

Natalie Davis: Okay. Thank you. That is a very thoughtful question. So if I start on capacity utilization, yes, you are right. We did add 22 theaters over the last year. Some of them we have only just recently opened. So Strathfield, for example, in Sydney, we have just recently opened. The capacity we have added to hospitals like Joondalup Private, for example, means that we are still very much focused on driving increases in utilization around that hospital catchment. So, as you say, the more that we can fill the existing capacity, the more that supports marginal contribution into the Australian result. On procurement, I would say in the second half, we started to get some traction in terms of what we are trying to do.

Speaker #2: Some of them we've only just recently opened, so Strathfield, for example, in Sydney we've just recently opened. And the capacity we've added to hospitals like Joondalup Private, for example, means that we are still very much focused on driving increases in utilization around that hospital catchment.

Speaker #2: So, as you say, the more that we can fill the existing capacity, the more that supports marginal contribution into the Australian result.

Speaker #2: On procurement, I would say in the second half we started to get some traction in terms of what we're trying to do. And there is overall a very significant opportunity there, as I've discussed before, because, you know, even though we're the largest private hospital operator in Australia, we traditionally have really been leaving most procurement decisions to individual hospitals.

Natalie Davis: There is overall a very significant opportunity there, as I have discussed before, because even though we are the largest private hospital operator in Australia, we traditionally have really been leaving most procurement decisions to individual hospitals. On both the clinical and the non-clinical side, we have been focusing on how do we actually create national tenders and national approaches, and more transparency to our hospital teams so they can also make better decisions. We did have success in the H2, and you would have seen that that supported a decrease in our cost of supplies as a percent of revenue for the year. Procurement is something that we will continue to target over the next 12 months. We have just over the last couple of weeks, rolled out, what the team calls a switch and save dashboard for hospitals.

Speaker #2: And so, on both the clinical and the non-clinical side, we have been focusing on how do we actually create national tenders and national approaches.

Speaker #2: And more transparency to our hospital teams so they can also make better decisions. You know, we did have success in the second half, and you would have seen that that supported a decrease in our cost of supplies as a percent of revenue for the year.

Speaker #2: And procurement is something that we will continue to target over the next 12 months. We've just, over the last couple of weeks, rolled out what the teams call a Switch and Save dashboard for hospitals.

Speaker #2: And this really gets down to a very practical level of medical consumables that hospitals are purchasing, and provides the hospital teams with data on exactly the same type of consumable, which is very complex to do, as you can imagine.

Natalie Davis: This really gets down to a very practical level of medical consumables that hospitals are purchasing and provides the hospital teams the data on exactly the same type of consumable, which is very complex to do as you can imagine. It prioritizes effectively for each hospital the opportunities they have if they switch to a different supplier and the amount that they can save, so that they can then effectively have conversations with clinicians in the hospital around switching over to better product. So that is something that we have just started to roll out to our 20 major hospitals, that will support procurement benefits over the next 12 months. In terms of the Joondalup impact in 2026, it was relatively equally phased, the impact of that funding agreement and our mitigation over the two halves.

Speaker #2: And the prioritizers, effectively for each hospital, the opportunities they have if they switch to a different supplier and the amount that they can save, so that they can then effectively have conversations with clinicians in the hospital around switching over to better products.

Speaker #2: So, that's something that we've just started to roll out to our 20 major hospitals. That will support procurement benefits over the next 12 months.

Speaker #2: And then, in terms of the June delay impact in '26, it was relatively equally phased, that the impact of that funding agreement and our mitigation were spread over the two halves.

Speaker #2: And so, looking forward, you know, we had a very significant impact from the change in the funding agreement because we shifted to the state price, and historically that state price hadn't been increased enough to cover cost inflation.

Natalie Davis: Looking forward, we had a very significant impact from the change in the funding agreement because we shifted to the state price, and historically, that state price had not been increased enough to cover cost inflation. So there was a step down effectively in what we were paid. This year, the state price in WA has gone up by, I think, almost 3.9%, so it is much closer to our labor cost, and cost increases in that hospital. That will not be a significant drag in terms of our F27 performance. We are very much focusing in Joondalup on partnering very closely with the local health district, and continuing to serve that community. There is a growing need for healthcare there. It is a growing catchment. The government has funded the new public capacity there. So there are two wards that opened there in the last few months, known as K-block.

Speaker #2: So there was effectively a step down in what we were paid. This year, the state price in WA has gone up by, I think, almost 3.9%.

Speaker #2: So, it's much closer to our labour costs and cost increases in that hospital, and so you know, that won't be a significant drag in terms of our FY27 performance.

Speaker #2: And we're very much focusing in Junee DeLapp on partnering very closely with the local health district and continuing to serve that community. There is a growing need for healthcare there.

Speaker #2: It's a growing catchment. The government has funded the new public capacity there, so there are two wards that have opened there in the last few months known as CABLOC.

Speaker #2: So, that's been funded for the new year. We've also been progressively opening and getting funding for the mental health capacity that was built there, so we've received funding this year for the remainder of that capacity as well.

Natalie Davis: So that has been funded for the new year. We have also been progressively opening and getting funding for the mental health capacity that was built there. So we have received funding this year for the remainder of that capacity as well. So, we will continue to work with the LHD there to continue to meet the needs of that community.

Speaker #2: So we will continue to work with the LHD there to continue to meet the needs of that community.

Speaker #5: Thanks. And then if I think about so those are all great levers into 27. But if I think about some of your EBAs and the wage indexations that have come through there is a step up in say periods like FY28.

Davin Balenathan: Thanks. So those are all great levers into 2027. But if I think about some of your EBAs and the wage indexations that could come through, there is a step up in, say, periods like FY2028. How do you manage, I guess, the business to ensure you've got that recurring EBIT growth to occur into 2028? What are some of the drivers you think that will start to help beyond a 12-month window?

Davin Thillainathan: Thanks. So those are all great levers into 2027. But if I think about some of your EBAs and the wage indexations that could come through, there is a step up in, say, periods like FY2028. How do you manage, I guess, the business to ensure you've got that recurring EBIT growth to occur into 2028? What are some of the drivers you think that will start to help beyond a 12-month window?

Speaker #5: So, how do you manage, I guess, the business to ensure you’ve got that recurring EBIT growth to occur into '28? Like, what are some of the drivers you think will start to help beyond a 12-month window?

Speaker #2: Yep. So, if I just step back and talk a bit about where we're up to on our EBAs—just recently we've had our Queensland EBA proposal endorsed by the team there.

Natalie Davis: Yep. If I step back and talk a bit about where we're up to on our EBAs. Just recently, we've had our Queensland EBA proposal endorsed by the team there. It follows relatively closely the public EBA. So, it still needs to be endorsed by the Fair Work Commission. But the team has endorsed effectively a 14% increase over four years there, just to give you a sense of the Queensland uplift. We will be beginning very soon the negotiation of our New South Wales EBA. So, the current EBA ended on 30 June. We enter into that negotiation in terms of our current wage rates in New South Wales being a parity, largely speaking with the public sector. The public agreement there, which was recently agreed, gives about a 3% yearly uplift for the next couple of years.

Speaker #2: It follows relatively closely the public EBA, so it still needs to be endorsed by the Fair Work Commission. But the team has endorsed, effectively, a 14% increase over four years there, just to give you a sense of the Queensland uplift.

Speaker #2: And we will be beginning very soon the negotiation of our New South Wales EBA. So the current EBA ended on the 30th of June.

Speaker #2: We enter into that negotiation in terms of our current wage rates in New South Wales being at parity, largely speaking, with the public sector.

Speaker #2: And the public agreement there, which was recently agreed, gives about a 3% yearly uplift for the next couple of years. I think the uplift that you're referring to is probably the Victorian EBA.

Natalie Davis: I think the uplift that you're referring to is probably the Victorian EBA, where we did, in the last 12 months, also finalized our Victorian EBA. As you'll be aware, that public EBA there had a very significant uplift in wages around November, December of 2027 calendar year. Our EBA has been agreed and approved by the team. It's actually a four-year EBA. It will have a step-up around that period. The overall increase is around about 24% over the four years. So that gives you a sense of the different EBAs in the states, at the current state. Our labor costs, in general at the moment, are running fairly closely in line with our revenue indexation. Broadly speaking, again, if you do broad maths, and you have a look at the employee cost growth that we've disclosed for F26 at 7.9%.

Speaker #2: So we did, in the last 12 months, also finalize our Victorian EBA. As you'll be aware, that public EBA there had a very significant uplift in wages around November or December of the 2027 calendar year.

Speaker #2: And our EBA has been agreed and approved by the team. It's actually a four-year EBA, and it will have a step-up around that period.

Speaker #2: The overall increase is around 24% over the four years. So that gives you a sense of the different EBAs in the state at the current stage.

Speaker #2: Our labour costs in general, at the moment, are running, you know, fairly closely in line with our revenue indexation. And, broadly speaking, again, if you do broad maths and you have a look at the employee cost growth that we've disclosed for FY26 at 7.9%, you know, broadly speaking, our labour costs are growing at about 5%.

Natalie Davis: Broadly speaking, our labor costs are growing at about 5%, and we expect that level to continue over the next few years. That's before we probably foresee some impacts from the Fair Work, fair value case as well, flowing through. So our corporate plan effectively forecasts out our wage growth, and we use that to inform our private health insurer negotiations. If there's any differences, then we will go back and renegotiate with our private health insurer partners. We've also, as I've spoken to previously, been in a process of trying through those negotiations to negotiate effectively year-on-year revenue indexation, which is linked to sector-wide metrics. We're making good progress on that. You've seen the results. We have four agreements that effectively have a level of mapping towards, or the formula links to sector metrics year-on-year.

Speaker #2: And you know, we expect that level to continue over the next few years. And that's before we probably foresee some impacts from the Fair Work Fair Value case as well, flowing through.

Speaker #2: So, you know our corporate plan effectively forecasts out our wage growth, and we use that to inform our private health insurer negotiations. And if there are any differences, then we will go back and renegotiate with our private health insurer partners.

Speaker #2: We've also, as I've spoken to previously, been in a process of trying, through those negotiations, to negotiate effectively year-on-year revenue indexation, which is linked to sector-wide metrics.

Speaker #2: And we're making good progress on that. You'll see in the results we have four agreements that effectively have a level of mapping towards, or formula links to, sector metrics year on year.

Speaker #2: And just to give you a sense of the size of that, roughly, when we look at our private revenue—so PHI-related revenues—that roughly covers about 48% of our revenue at the moment.

Natalie Davis: And just to give you a sense of the size of that roughly when we look at our private revenue, so PHI-related revenues, that roughly covers about 48% of our revenue at the moment, those type of contracts.

Speaker #2: Those type of contracts.

Speaker #5: Thanks Natalie.

Davin Balenathan: Thanks, Natalie.

Davin Thillainathan: Thanks, Natalie.

Speaker #3: Your next question will come from Andrew Goodsell of MST Marquee. Please go ahead.

Operator: Your next question will come from Andrew Goodsall of MST Marquee. Please go ahead.

Speaker #4: Thanks very much for taking my questions. Just looking at the Australian business, I'm just trying to understand where you are in your digital and data.

Andrew Goodsall: Thanks very much for taking my questions. Just looking at the Australian business, just trying to understand where you are in your digital and data. I know you have spoken to this a bit, and you have given us your CapEx spend. Could you give us a sense of what your OpEx was for digital and data in 2026 versus 2025, and then just that OpEx go forward?

Speaker #4: I know you've spoken to this a bit, and you've given us your CapEx spend. Could you give us a sense of what your OpEx was for digital and data in 2026 versus 2025, and then just that OpEx going forward?

Speaker #2: So, we really have stopped providing, specifically, what we're spending in that digital data transformation space. What we did say last year, as we were entering this year, is we were actually going to reduce some of the investment. If you recall, in the previous transformation effort we had, you know, significant resources around things like project management and change management.

Natalie Davis: We really have stopped providing specifically what we are spending in that digital data transformation space. What we did say last year as we were entering this year is, we were actually going to reduce some of the investment. If you recall, in a previous transformation effort, we had significant resources around things like project management and change management. We are really focused on slimming down the team and then resetting the technology roadmap going forward. Now, as I have kind of described, we have got, I think, a very well-sequenced plan, that is going to help us and help support effectively those, what we call the big five hospital operations initiatives. So, those initiatives will help to deliver value.

Speaker #2: We're really focused on slimming down the team and then resetting the technology roadmap going forward. And so now, as I've kind of described, we've got, I think, a very well-sequenced plan.

Speaker #2: That, you know, is going to help us and help support, effectively, those what we call the big five hospital operations initiatives. So, you know, those initiatives will help to deliver value, and, you know, at the moment, that's—I would say—the value from our investment so far has really come through on the data side, in terms of the data that we're providing to our hospitals, particularly to support their discussions around growth, both in terms of catchments and referral patterns, but also in terms of utilization of existing theatre and cath lab capacity.

Natalie Davis: At the moment, that is, I would say, the value from our investment so far has really come through on the data side in terms of the data that we are providing to our hospitals, particularly to support their discussions around growth, both in terms of catchments and referral patterns, but also in terms of utilization of existing theater and cath lab capacity. Also, we have added some data there on robotics utilization as well over the last 6 months. So very much. That data has been very heavily used by the hospital teams because it lets them make very practical decisions around where they have opportunities to better utilize the existing capacity, where they are backfilling that capacity when we have cancellations or holidays, and also how we are continuing to grow and attract new doctors to the Ramsay network. So that has been a fantastic foundation.

Speaker #2: And also, we've added data there on robotics utilization as well over the last six months. So very much, and that data's been very heavily used by the hospital teams because it lets them make very practical decisions.

Speaker #2: Around where they have opportunities to better utilize the existing capacity, where they're backfilling that capacity when we have cancellations or holidays, and also how we're continuing to grow and attract new doctors to the Ramsay network.

Speaker #2: So that's been a fantastic foundation, and just recently, as I mentioned, the procurement data insights that we've provided are very similar in terms of being very actionable by our hospital teams to make better decisions.

Natalie Davis: Just recently, as I mentioned, the procurement data insights that we have provided are very similar in terms of very actionable by our hospital teams to make better decisions. We have also rolled out over the last 12 months, a remote central monitoring system, which is supporting our clinicians. So we are also in parallel to some of those business technology initiatives, continuing to look at technology initiatives to enable our clinicians. We are in the process of rolling out a system to support some of our oncology infusion services as well. So, we will continue to very thoughtfully sequence what we are investing and try and manage overall at a business level to make sure that we are growing our margins for the overall business as we continue to make those much-needed investments.

Speaker #2: We've also rolled out, over the last 12 months, a remote fetal monitoring system which is supporting our clinicians. So, we're also, in parallel to some of those business technology initiatives, continuing to look at technology initiatives to enable our clinicians. We're in the process of rolling out a system to support some of our oncology infusion services as well.

Speaker #2: So, we'll continue to very thoughtfully sequence what we're investing, and try to manage overall at a business level to make sure that we're growing our margins for the overall business as we continue to make those much-needed investments.

Speaker #4: Would the net of all of those initiatives be below where you were in 2025, and would you expect that to sort of stay at these levels?

Andrew Goodsall: Would the net of all of those initiatives be below where you were in 2025, and would you expect that to sort of stay at these levels?

Natalie Davis: I think to your first part of that question, yes, there were savings relative to FY 2025, as I described, but we are now at the point where we are starting to increase that investment in the targeted areas in a thoughtful way.

Speaker #2: I think, to your first part of that question, you know, yes, there were savings relative to FY25 as I described, but we are now at the point where we're starting to, you know, increase that investment in the targeted areas in a thoughtful way.

Anthony Neilson: As we have said, Andrew, we will look at guidance next year from the savings we have achieved this year, an extra AUD 10 to AUD 15 million coming into FY 2027.

Speaker #1: As we've said, Andrew, we'll look at guidance next year from the savings we've achieved this year—an extra $10 to $15 million—coming into FY27.

Andrew Goodsall: On the OpEx.

Speaker #4: On that OpEx?

Speaker #1: Yes.

Anthony Neilson: Yes.

Speaker #4: And then, just quickly on the UK, you've given us a lot of colour on the turnaround. It's been a good turnaround, particularly in lithium, but just trying to understand the environment there. Last year, we had that sort of November overspend, I guess, and shutdown. Is that plausible this year, or are things in place to make that a bit more clear?

Andrew Goodsall: Then just quickly on UK, you have given us a lot of color on turnaround. It has been a good turnaround, particularly Elysium, but just trying to understand the environment there or just your understanding of last year, we had that sort of November overspend, I guess, and shutdown. But is that plausible this year, or are things in place to make that a bit more clear?

Speaker #2: So, I think lithium and UK hospitals have different dynamics. So let me just separate those. With UK hospitals, we really saw that pullback in activity funding around November–December last year. We then had to, and attempted, a great job effectively tailoring and flexing the business based on that pullback.

Natalie Davis: Sorry. I think Elysium and UK hospitals have different dynamics, so let me just separate those. It was UK hospitals that really saw that pullback in activity funding around November, December last year, that we then had to. The team did a great job effectively tailoring and flexing the business based on that pullback. I think what we are seeing this year so far is the indicative activity plans that we are getting at a hospital level are supporting activity growth. And we are also, I guess, spreading out that activity growth more evenly or planning to spread it out more evenly throughout the year. We have also seen, just last week, the NHS lift the tariff to 1.24% as well, which will support revenue growth in the UK hospitals business.

Speaker #2: I think what we're seeing this year so far is, you know, the indicative activity plans that we're getting at a hospital level are supporting activity growth.

Speaker #2: And we're also, I guess, spreading out that activity growth more evenly, or planning to spread it out more evenly throughout the year. We've also seen, you know, just last week the NHS lift the tariff to 1.24% as well, which will support revenue growth in the UK hospitals business.

Speaker #2: So, you know, I guess at this point we're planning for activity growth, but we're also very conscious that things can change. And we know we need to develop our private work, and that's both self-pay and private health insurers' work.

Natalie Davis: I guess at this point, we are planning for activity growth, but we are also very conscious that things can change. And we know we need to develop our private work, and that is both self-pay and private health insurance work, in the UK business to really diversify our revenue stream. And the team again, made very good progress in the H2 around self-pay in particular. As that pullback happened, there were obviously patients on the NHS waiting list, who needed to have their surgeries done, and so our self-pay growth was higher in that H2. And then we do have a very attractive proposition for private health insurer partners in the UK as well because, we drive very high-quality hospitals and we are a very efficient operator. So, we will continue to really grow that part of the business and provide a level of diversification.

Speaker #2: In the UK business, to really diversify our revenue streams—and the team again made very good progress in the second half, around self-pay in particular.

Speaker #2: So, as that pullback happened, there were obviously patients on the NHS waiting list who needed to have their surgeries done, and so our self-pay growth was higher in that second half.

Speaker #2: And then we do have a very attractive proposition for private health insurer partners in the UK as well, because we drive very high-quality hospitals and we're a very efficient operator.

Speaker #2: So we'll continue to really grow that part of the business and provide a level of diversification. Lithium was, I guess, less of that kind of pullback in November and December.

Natalie Davis: Elysium was more of a, I guess, it was less of that kind of pullback in November, December. It was more a shift in NHS policy towards more community-based care. And so we found, we were experiencing fewer referrals into inpatient facilities and also faster discharges into the community. So that is really been a shift, I guess, in the approach, by the NHS. As I said, the team feels like we have done the substantive realignment of our supply of beds to the demand at a local geography and a local service level. And so the focus now really is on filling the capacity that we have and continuing to make sure we work on our costs.

Speaker #2: It was more a shift in NHS policy towards more community-based care. And so we found we were experiencing fewer referrals into inpatient facilities, and also faster discharges into the community.

Speaker #2: So that's really been a shift, I guess, in the approach by the NHS. As I said, the team feels like, you know, we've done a substantive realignment of our supply of beds to the demand at a local geography and a local service level.

Speaker #2: And so the focus now really is on filling the capacity that we have, and continuing to make sure we work on our costs.

Speaker #4: All right thank you.

Andrew Goodsall: All right. Thank you.

Speaker #3: Your next question will come from Craig Wong-Pond of RBC. Please go ahead.

Operator: Your next question will come from Craig Wong-Pan of RBC. Please go ahead.

Speaker #5: Thank you. There was mention of a new partnership agreement with a major insurer. I just wanted to see if you could elaborate more on this and the benefits you expect.

Craig Wong-Pan: Thank you. There was mention of a new partnership agreement with a major insurer. Just wanted to see if you could elaborate more on this and the benefits you could expect.

Speaker #2: Look, we don't tend to get into specific details of specific, you know, commercial arrangements, but what I would say is it's been very pleasing to, over the last 12 months, really discuss with private health insurer partners the opportunities we have to really modernise the care that we're delivering.

Natalie Davis: Look, we don't tend to get into specific details of specific commercial arrangements. But what I would say is, it's been very pleasing to, over the last 12 months, really discuss with private health insurer partners the opportunities we have to really modernize the care that we're delivering and to modernize the funding, therefore, of that care. One of the things we've worked on with a few of our private health insurer partners is really changing the way, for example, that mental health is funded. So, we've had a traditional, I guess, inpatient care model and an inpatient funding model, and we're normally in legacy contracts paid in line with length of stay in one of our mental health clinics. That might be 21 days in terms of a mental health stay. But we know the community is changing. We know that there's a preference now towards community-based care.

Speaker #2: And to modernise the funding, therefore, of that care. And, you know, one of the things we've worked on with a few of our private health insurer partners is really changing the way, for example, that mental health is funded.

Speaker #2: So we've had a traditional, I guess, inpatient care model and an inpatient funding model, and we're normally, in legacy contracts, paid in line with length of stay. In one of our mental health clinics, that might be 21 days in terms of a mental health stay.

Speaker #2: But we know the community is changing. We know that there's a preference now towards community-based care. And we know that a lot of our workforce, also, and psychiatrists, are treating people in different settings and using telehealth more. And we know that follow-up from inpatient stays is very important.

Natalie Davis: We know that a lot of our workforce also, and psychiatrists, are also treating people in different settings and using telehealth more. That follow-up from an inpatient stay is very important. So we've been working with a number of our private health insurer partners to effectively change the way that we're funded, so we're not just funded for that inpatient stay, but that we're funded and incentivized to support people post that stay into the community. That means that we hopefully can deliver better patient outcomes because we've provided continuity of care, and we are reducing that risk of that same patient being readmitted into a mental health clinic. So that's a good example of, I think, the shift you'll see us continuing to make together with private health insurers around modern care delivery models and the funding then to support that.

Speaker #2: And so we've been working with a number of our private health insurer partners to effectively change the way that we're funded, so we're not just funded for that inpatient stay.

Speaker #2: But that we're funded and incentivized to support people post that stay into the community. And that means that we actually can deliver better patient outcomes because we provide continuity of care, and we are reducing the risk of that same patient being readmitted into a mental health clinic.

Speaker #2: And so that's a good example of, I think, the shifts you'll see us continuing to make together with private health insurers around modern care delivery models.

Speaker #2: And the funding, then, to support that.

Speaker #5: Okay, thank you. That's helpful. I just wanted to touch on the admissions growth—within rehab, there was quite strong growth in the second half.

Craig Wong-Pan: Okay. Thank you. That is helpful. Just wanted to touch on the admissions growth, like within rehab, there was quite stronger growth in the H2. Just wanted to understand if something had changed to drive that high growth in the H2.

Speaker #5: I just want to understand, has something changed to drive that high growth in the second half?

Speaker #2: Not specifically, but we have continued in rehab. If you look at our last, you know, two years of results, we have continued to see strong growth in rehab.

Natalie Davis: Not specifically, but we have continued in rehab. If you look at our last two years of results, we have continued to see strong growth in rehab. This really is an aging population and a population with more chronic diseases and comorbidities. If you do unfortunately have a fall and you live at home by yourself, it really does make a difference to be able to access that rehab treatment post-surgery, and our teams do an amazing job actually getting everyone literally back on their feet, exercising in the gyms and really able to go home and live an independent life. We continue to see the strong demand for rehab facilities, and there is still an opportunity for us to do a better job of connecting our own rehab facilities with hospital care.

Speaker #2: And this really is an aging population and, you know, a population with more chronic diseases and comorbidities. And so if you do unfortunately have a fall and you live at home by yourself, it really does make a difference to be able to access that rehab treatment post-surgery. And our team's doing an amazing job actually getting everyone literally back on their feet, you know, exercising in the gyms and really able to go home and live an independent life.

Speaker #2: And so we continue to see strong demand for rehab facilities, and there's still an opportunity for us to do a better job of connecting our own rehab facilities with hospital care.

Speaker #2: So, you know, really providing, again, that continuity of care from hospital into rehab, and really to help Australians live more independent lives for longer.

Natalie Davis: So really providing, again, that continuity of care from hospital into rehab, and really to help Australians live more independent lives for longer. I think broadly speaking, that is what we have seen in that number.

Speaker #2: So I think, broadly speaking, that's what we've seen in that number.

Speaker #5: Okay. And then on the UK businesses, both Lithium and UK hospitals, there was good improvement in margins in the second half. There were a few different factors that impacted in the period.

Craig Wong-Pan: Okay. On the UK businesses, both Elysium and UK hospitals, there was good improvement in margins in the H2. There were a few different factors that impacted in the period. I was just trying to understand, is that H2 margin a good level to indicate for FY27, or is there puts and takes there around the initiatives you have experienced, the funding changes? Just trying to get a sense of if that H2 margin is a good indicator for 2027.

Speaker #5: I was just trying to understand, is that second-half margin a good level to indicate for FY27, or are there puts and takes there around the initiatives and the funding changes? I'm just trying to get a sense of if that second-half margin is a good indicator for '27.

Speaker #2: Just one general comment on the UK and actually the European business: the second half always looks stronger than the first half because of seasonality impacts.

Natalie Davis: So just one general comment on the UK and actually the European business is that the H2 always looks stronger than the H1 because of seasonality impact. So that impact is obviously there in the result. With Elysium, we did, though, see an improvement in the margin in the H2. And that really was the impact of the right sizing of our facilities, which led to significant cost reduction, as well as our ongoing focus on central costs coming through and the fee uplift being supported. So, I think we are seeing more momentum. But what we're effectively saying is take the overall EBIT for Elysium and assume we have growth in that overall EBIT for the year, just knowing that we do have that seasonality impact in the overseas businesses.

Speaker #2: So that impact is obviously there in the result. With Lithium, we did see an improvement in the margin in the second half, and that really was the impact of the right-sizing of our facilities.

Speaker #2: Which led to significant cost reduction, as well as our ongoing focus on central costs coming through and the fee uplifts being supported. So, you know, I think we are seeing more momentum, but you know, what we’re effectively saying is: take the overall EBIT for Lithium and assume we have growth in that overall EBIT for the year.

Speaker #2: Just knowing that we do have that seasonality impact in the overseas businesses.

Speaker #5: Okay, and then just my last question. The net interest expense—the guidance there for a $20 to $40 million increase—I just wanted to understand what's driving that.

Craig Wong-Pan: Okay. And then just my last question. The net interest expense, the guidance there for a AUD 20 million to AUD 40 million increase. Just wanted to understand what's driving that. I see base rates are assumed to be a bit higher, but is that also being driven by National Capital or what's driving that increase?

Speaker #5: I see base rates are assumed to be a bit higher, but is that also being driven by national capital, or what's driving that increase?

Speaker #1: Yes, both. So yes, base rates are higher, and yes, we will draw down and increase leverage a small amount due to the Net Cap acquisition.

Anthony Neilson: Yeah. Both. Yes. So yes, base rates are higher and yes, we will draw down and increase leverage a small amount due to the Nat Cap acquisition.

Speaker #5: Okay thank you.

Craig Wong-Pan: Okay. Thank you.

Speaker #3: Your next question will come from Laura Sutcliffe of Citi. Please go ahead.

Operator: Your next question will come from Laura Sutcliffe of Citi. Please go ahead.

Speaker #4: Thank you for taking my questions. Just going back to EBIT margin expansion in Australia. Across the call, you've mentioned quite a long list of drivers, but which are the one or two that are really going to move the needle at this stage in the transformation process? Or perhaps another way to put it is, which one or two do you absolutely have to deliver on for the plan to work?

Laura Sutcliffe: Thank you for taking my question. Just going back to EBIT margin expansion in Australia. Across the call, you've mentioned quite a long list of drivers, but which are the one or two that are really going to move the needle at this stage in the transformation process? Or perhaps another way to put it is, which one or two do you absolutely have to deliver on for the plan to work?

Speaker #2: Yeah, I think it's hard to just call out one or two things that we need to land next year. We've, you know, set out effectively, you know, five focus areas for the Australian business, and they are at different stages.

Natalie Davis: Yeah. I think it's hard to just call out one or two things that we need to land next year. We've set out effectively five focus areas for the Australian business and they're at different stages. But we do need to continue the momentum. So, we do continue to focus on growth in high acuity areas. We do need to maintain our revenue indexation in line with our cost indexation. Then we do need to work on our efficiencies, and procurement is the one that we've probably started to get some traction on, that we're well-positioned in terms of the initiatives that we're launching at the moment into the business, to create impact in this current financial year. Revenue cycle management, I think, is more kind of in the earlier phases where we're really building the foundation to then begin to deliver impact.

Speaker #2: But we do need to continue the momentum, so we continue to focus on growth in high-acuity areas. We also need to maintain our revenue indexation in line with our cost indexation.

Speaker #2: And then we do need to work on our efficiencies, and procurement is the one that, you know, we probably started to get some traction on. We're, you know, well positioned in terms of the initiatives that we're launching at the moment into the business to create impact in this current financial year.

Speaker #2: Revenue cycle management, I think, is more in the earlier phases where we're really building the foundation to then begin to deliver impact.

Speaker #2: So I think that the visibility of the benefits in the P&L will probably be largely FY28 and beyond. And then there are some benefits of agency reduction that we expect to come through in the next 12 months as well.

Natalie Davis: So I think that the visibility of the benefits in the P&L will probably be largely F28, and beyond. Then there are some benefits of agency reduction that we expect to come through in the next 12 months as well, and that continues to be a focus. But really managing our workforce and optimizing rostering, we'll only be able to do fully in terms of realisable potential of that once the smart rostering system is implemented, and that's still a while away. So hopefully you can get a sense of we're working on a number of things and there's very clear focus areas in the business, to make sure that we're sequencing our efforts and seeing those benefits come through in year-on-year margin improvement.

Speaker #2: And that continues to be a focus. But, you know, really managing our workforce and optimizing rostering will only be able to be fully realized, in terms of potential, once the smart rostering system is implemented—and that's still a while away.

Speaker #2: So hopefully you can get a sense that we're working on a number of things, and there are very clear focus areas in the business to make sure that we're sequencing our efforts and seeing those benefits come through—year-on-year margin improvements.

Speaker #4: Thanks, that's really helpful. And then just one more: In Australia this year, are you seeing lower flu-related admissions than you did last year?

Laura Sutcliffe: Thanks. That's really helpful. Then just one more. In Australia this year, are you seeing lower flu-related admissions this year than you did last year?

Speaker #2: I think overall it's very public. It's been less of a serious flu season this year, but we're obviously continuing to focus on growing our hospitals and our admissions, and, you know, medical as well as surgical.

Natalie Davis: Look, I think, overall it's very public. It's been less of a serious flu season this year. We're obviously continuing to focus on growing our hospitals and our admissions and medical as well as surgical. So we continue to grow and we continue to target above-market growth.

Speaker #2: So we continue to grow, and we continue to target, you know, above-market growth.

Speaker #4: Thank you.

Laura Sutcliffe: Thank you.

Speaker #3: Your next question will come from Chris Cooper of JP Morgan. Please go ahead.

Operator: Your next question will come from Chris Cooper of JP Morgan. Please go ahead.

Speaker #1: Good morning. Thank you for taking the questions. The new partnership with the major insurer—I mean, that process seemed to start and finish more quickly, and probably more amicably, than some examples in the recent past.

Chris Cooper: Morning. Thank you for taking the questions. The new partnership with the major insurer, that process seemed to start and finish more quickly and probably more amicably than some examples in the recent past. Are you able to shed any light on why you think those discussions seemingly are getting wrapped up a little bit more efficiently nowadays?

Speaker #1: Are you able to shed any light on why you think those discussions seem to be getting wrapped up a little bit more efficiently nowadays?

Speaker #2: Well, there was a lot of work on, you know—I think we spoke in February around entering into that negotiation, and you know, the preparatory work happens even before then.

Natalie Davis: Well, there was a lot of work on, I think we spoke in February around entering into that negotiation and the preparatory work happens even before then. But I think we have been talking to our private health insurer partners about the need for us to have our cost inflation reflected in revenue indexation. I think it is very well understood that the costs across the sector in healthcare are rising and that there is sustained cost pressure. Private health insurers are more understanding of that, and are beginning to come to the table. The more that we can negotiate around an element of effectively year-on-year indexation that is linked to sector metrics, what that does is it basically then frees up time for both teams to actually talk about how we change the funding structure itself and how do we strengthen the private health proposition.

Speaker #2: But, you know, I think we have been talking to our private health insurer partners about the need for us to have our cost inflation reflected in revenue indexation.

Speaker #2: I think it's very well understood that the costs across the sector in healthcare are rising, and that there is sustained cost pressure. And, you know, private health insurers are more understanding of that and are beginning to come to the table.

Speaker #2: And you know, the more that we can negotiate around an element of effectively year-on-year indexation that is linked to sector metrics, what that does is it basically then frees up time for both teams to actually talk about how we change the funding structure itself, and how do we strengthen the private health proposition.

Speaker #2: Because that's ultimately what we're trying to do here. We're trying to provide a very strong private health proposition to encourage more Australians to take up private health insurance.

Natalie Davis: Because that is ultimately what we are trying to do here. We are trying to provide a very strong private health proposition to encourage more Australians to take up private health insurance. We need to do that collaboratively with our private health insurer partners. If we can avoid having to go back each year in the middle of a contract and renegotiate indexation, then that does mean that we can spend more time actually on trying to find the opportunities to strengthen that private health proposition, and the mutual benefit of growing private health insurance coverage in Australia.

Speaker #2: And we need to do that collaboratively with our private health insurer partners. So, if we can avoid having to go back each year in the middle of a contract and renegotiate indexation, then that does mean that we can spend more time actually on trying to find the opportunities to strengthen that private health proposition.

Speaker #2: And the mutual benefit of growing private health insurance coverage in Australia.

Speaker #1: And in terms of those contracts that have built-in indexation, you said three of the smaller ones after the half-year result. You're now saying four, and that comprises—I think you said—48% of your PHI revenue.

Chris Cooper: In terms of those contracts that have built-in indexation, you said three of the smaller ones after the H1 results. You are now saying four, and that comprises, I think you said 48% of your PHI revenue.

Speaker #1: So we infer from that that the new one that has just been renegotiated, the large one, that's now got in-built indexation in it.

Natalie Davis: Yes.

Chris Cooper: We infer from that the new one that has just been renegotiated, the large one that is now got inbuilt indexation in it.

Speaker #2: So I'm not making any specific comments on any one particular contract, but we have given you that 48%, just to give you a sense of the coverage that we do have now.

Natalie Davis: I am not making any specific comments on any one particular contract, but we have given you that 48% just to give you a sense of the coverage now that we do have.

Speaker #2: Yeah.

Chris Cooper: Understood.

Natalie Davis: Yeah.

Speaker #1: Okay, thank you. And just one on cash: you made the comment yourself, or Anthony did, that each of the different businesses within the funding group were all net cash flow positive.

Chris Cooper: Okay. Thank you. Just one on cash. You made the comment, yourself or Anthony Neilson, that each of the different businesses within the funding group were all net cash flow positive. I assume that is the first time that has happened. You are guiding to EBIT growth for each of them in fiscal 2027. Can I just confirm that there is no sort of foreseeable reason why these businesses will not therefore continue to be net cash flow positive through 2027 and probably 2028 at this point?

Speaker #1: I assume that's the first time that's happened. You're guiding to EBIT growth for each of them in fiscal '27. Can I just confirm that there's no foreseeable reason why these businesses wouldn't therefore continue to be net cash flow positive through '27 and probably '28 at this point?

Speaker #5: Again, we're not giving specific guidance on each business, but in answer to your first part of the question— I haven't been here that long, but Kelly's nodding, saying yes. We believe that's the first time that the businesses have been all net cash positive.

Anthony Neilson: Again, we are not giving specific guidance on each business. But in answer to your first part of the question, I have not been here that long, but Kelly is nodding, saying, "Yes, we believe that is the first time that the businesses have been all net cash positive." So it is a fantastic effort across the board with all the initiatives and performance in UK and Australia that Natalie Davis has talked about. Hopefully we can continue that momentum.

Speaker #5: So it is a fantastic effort across the board with all the initiatives and performance in the UK and Australia that Natalie’s talked about. And hopefully we can continue that momentum.

Speaker #1: Okay, and just one final one. There's been lots of talk about the VAT utilization. Twenty-two new operating theaters in the year—obviously a decent uplift, about 5% or so.

Chris Cooper: Okay. Just one final one. Lots of talk on the theater utilization. 22 new operating theaters in the year, obviously a decent uplift, about 5% or so. Some of those appeared to be quite late in the year. I guess the question is, would you anticipate continuing to grow OT capacity around that sort of mid-single digit level in 2027? Or are we now in the process of focusing more on utilization of that additional capacity rather than building more capacity?

Speaker #1: Some of those appear to be quite late in the year, so I guess the question is: would you anticipate continuing to grow OT capacity around that sort of mid-single-digit level in '27, or are we now in the process of, you know, focusing more on utilization of that additional capacity rather than building more capacity?

Speaker #2: So we're definitely focused on filling that capacity but we've also got you know 11 new theaters or cath labs coming online this year. And you know we're adding capacity where we're already we've already got high utilization.

Natalie Davis: We're definitely focused on filling that capacity, but we've also got 11 new theaters or cath labs coming online this year. We're adding capacity where we've already got high utilization. I mentioned some of the hospitals where we're adding the capacity, Hollywood, where we've got two theaters and two cath labs, St. George, and Westmead. They're all hospitals that have a high level of utilization already. So they need the new capacity, and so when this new capacity opens, we'll be filling that capacity. But at the same time, we've got to still fill up some of the capacity that we opened in the last 12 months, particularly where we've got very significant investments on one site. Joondalup Private, in particular, that'll be a focus for growth over the next two to three years to really ramp up the private side.

Speaker #2: So, as you know, I mentioned some of the hospitals where we're adding capacity—Hollywood, where we've got two theatres and two cath labs. St.

Speaker #2: George and Westmead—they're all hospitals that have a high level of utilization already. So they need the new capacity, and so when the new capacity opens, we'll be filling that capacity.

Speaker #2: But at the same time, we've got to still fill up some of the capacity that we opened in the last 12 months, particularly where we've got very significant investments on one site. So, John Dory Private in particular, you know, that will be a focus for growth over the next two to three years to really ramp up the private side.

Speaker #2: But even if I think back to the Northern, which we opened a while ago, you know, we are still focusing on ramping up that facility.

Natalie Davis: But even, if I think back to the Northern, which we opened a while ago, we are still focusing on ramping up that facility. So we're doing both at the same time.

Speaker #2: So, we're doing both at the same time.

Speaker #1: Great. Thank you.

Chris Cooper: Great. Thank you.

Speaker #3: Your next question will come from Steve Quinn of Jordan. Please go ahead.

Operator: Your next question will come from Steven Wheen of Jarden. Please go ahead.

Speaker #4: Yeah, good morning. I just wanted to talk to margins in Australia. When I look at the first half of '26, adjusting out the impact or the headwind from Jundah, it looked like the EBIT margin was up 30 to 40 basis points. Turning to the second half, it's up 100, you know, stripping out Jundah.

Steven Wheen: Yeah, good morning. I just wanted to talk to margins in Australia. When I look at H1 2026, adjusting out the impact or the headwind from Joondalup, it looked like the EBIT margin's up 30 to 40 basis points. Turning to H2, it's up 100 on the, stripping out Joondalup. I'm just trying to understand, is that gap or that acceleration of the margin improvement pricing related? I know there's a number of contributors to this, but you indicated in the H1 that you were pursuing, perhaps clawing back some of the lack of indexation you hadn't received from insurers, and is that part of that? Now that we're moving to dynamic pricing, can we maintain that sort of gap that allows that margin to improve? Thanks.

Steve Wheen: Yeah, good morning. I just wanted to talk to margins in Australia. When I look at H1 2026, adjusting out the impact or the headwind from Joondalup, it looked like the EBIT margin's up 30 to 40 basis points. Turning to H2, it's up 100 on the, stripping out Joondalup. I'm just trying to understand, is that gap or that acceleration of the margin improvement pricing related? I know there's a number of contributors to this, but you indicated in the H1 that you were pursuing, perhaps clawing back some of the lack of indexation you hadn't received from insurers, and is that part of that? Now that we're moving to dynamic pricing, can we maintain that sort of gap that allows that margin to improve? Thanks.

Speaker #4: I'm just trying to understand, is that gap or that acceleration of the margin improvement pricing-related? I mean, I know there are a number of contributors to this, but you indicated in the first half that you were perhaps pursuing clawing back some of the lack of indexation you hadn't received from insurers. Is that part of it? And now that we're moving to dynamic pricing, can we sort of maintain that gap that allows that margin to improve?

Speaker #4: Thanks.

Speaker #2: So there was a higher margin uplift in the second half, but that can partially be explained by impacts last year, including in particular the cyclone that you'll recall impacted Queensland.

Natalie Davis: There was a higher margin uplift in the H2, but that can partially be explained by impacts last year, including in particular, the cyclone that you'll recall that impacted Queensland. That impacted in particular some of our big sites around the Gold Coast and Greenslopes as well. Part of that uplift effectively, is really related to prior period impacts rather than what we've done in this year. There was an improvement in procurement benefits that started flowing through in the H2 to support that uplift in the H2 as well. We've been on revenue indexation that broadly speaking, looking forward, we expect revenue indexation in line with our cost indexation for 2027, and we'll continue to focus on acuity to support further revenue growth per admission ahead of that.

Speaker #2: And that impacted, in particular, some of our big sites around the Gold Coast and Greenslopes as well. So part of that uplift, effectively, is really related to prior period impacts rather than what we've done in this year.

Speaker #2: There was an improvement in procurement benefits that started flowing through in the second half, which helped support that uplift in the second half as well.

Speaker #2: So, you know, we've been on revenue indexation and, broadly speaking, looking forward, we expect revenue indexation in line with our cost indexation for '27.

Speaker #2: And we'll continue to focus on acuity to support further revenue growth per admission, ahead of that.

Speaker #4: Okay. And so, do you expect to be able to shift that 48%, or is that sort of dynamic pricing not likely to be achieved across the whole PHI base?

Steven Wheen: Okay. Do you expect to be able to shift that 48% or is that sort of dynamic pricing not likely to be achieved across the whole PHI base?

Steve Wheen: Okay. Do you expect to be able to shift that 48% or is that sort of dynamic pricing not likely to be achieved across the whole PHI base?

Natalie Davis: We are trying to implement a level of dynamic indexation in all of our negotiations. We basically negotiate with different insurers at different moments in time. Every time we will come up for a renegotiation, we will try and create an agreement where we can put that in place. I think it works for both sides. It really is a fair mechanism for indexation because it is referencing externally available benchmarks. It does mean, as I said, that the teams on both sides, instead of almost every year, which has been the pattern over the last few years, going back to the table to renegotiate annual indexation. The teams can instead spend time actually thinking through how to create partnership agreements and how do we really modernize funding and modernize healthcare delivery, which is the conversations that we really do want to have with our private health insurers.

Speaker #2: We are trying to implement a level of dynamic indexation in all of our negotiations. We basically negotiate with different insurers at different moments in time, so every time we come up for a renegotiation, we will try and create an agreement where we can put that in place.

Speaker #2: I think it works for both sides it really is a fair mechanism for indexation because it's referencing externally available benchmarks and it does mean as I said that the teams on both sides instead of you know almost every year which has been the pattern over the last few years going back to the table to renegotiate annual indexation the teams can instead spend time actually thinking through how to create partnership agreements and how do we really modernize funding and modernize healthcare delivery which is the conversations that we really do want to have with our private health insurers.

Speaker #2: So, we'll continue to try and effectively make that part of our agreements going forward.

Natalie Davis: We will continue to try and effectively make that part of our agreements going forward.

Speaker #4: Okay, thanks, Natalie. Second question for me is just on the portfolio review. In particular, Australia again. I noticed that you've been able to make some small divestitures; just wondered if there's further to come. And then as part of the portfolio, I'm just interested in the allocation of some immediate capex to National Capital. Is that to expand the operating theater capacity within that hospital, given the strong levels of growth it enjoys? And also, as part of the portfolio—sorry—is Werribee and Northern Hospital at a point where they're going to sort of drive margin, or are they still ramping and likely to be a bit of a drag in FY27?

Steven Wheen: Okay. Thanks, Natalie. Second question from me is just on the portfolio review, in particular Australia again. I noticed that you have been able to make some small divestitures. I just wonder if there is further to come. As part of a portfolio, I am just interested in the allocation of some immediate CapEx to National Capital. Is that to expand the operating theater capacity within that hospital, given how the strong levels of growth it enjoys? Also as part of the portfolio, sorry, is Warringal and Northern Hospital, are they at a point where they are going to sort of drive margin, or are they still ramping to be a little bit of a drag in FY27? Thanks.

Steve Wheen: Okay. Thanks, Natalie. Second question from me is just on the portfolio review, in particular Australia again. I noticed that you have been able to make some small divestitures. I just wonder if there is further to come. As part of a portfolio, I am just interested in the allocation of some immediate CapEx to National Capital. Is that to expand the operating theater capacity within that hospital, given how the strong levels of growth it enjoys? Also as part of the portfolio, sorry, is Warringal and Northern Hospital, are they at a point where they are going to sort of drive margin, or are they still ramping to be a little bit of a drag in FY27? Thanks.

Speaker #4: Thanks.

Speaker #2: Okay, well, that is a lot of questions in one question, but I will have a go. So first of all, on our portfolio review of our hospitals—so, you know, we do see the ownership of our hospitals as a strategic advantage.

Natalie Davis: Well, that is a lot of questions in one question, but I will have a go. First of all, on our portfolio review of our hospitals. We do see the ownership of our hospitals as a strategic advantage. We have been reviewing the portfolio, really having a look at some of our smaller sites. What you have seen us do in a few examples, and I might talk through a couple, is look at sites that were really not being heavily utilized, where we have neighboring sites that can provide that service and transferring the patients and the team and the doctors to nearby Ramsay sites. If I take Glenferrie in Victoria, that is a surgical center that we closed. It is close to The Avenue Hospital in Masada Private Hospital, Ramsay Hospital.

Speaker #2: We have been reviewing the portfolio, really having a look at some of our smaller sites, and what you've seen us do in a few examples—and I might talk through a couple—is look at sites that were really not being heavily utilized, where we have neighboring sites that can provide that service, and transferring the patients and the team and the doctors to nearby Ramsay sites.

Speaker #2: So if I take Glenferrie in Victoria, that is a surgical center that we closed. It is close to The Avenue and Masada Ramsay hospitals, and so effectively the vast majority of our patients, services, our team, and our clinicians have shifted to other Ramsay hospitals.

Natalie Davis: Effectively, the vast majority of our patient services, our team, and our clinicians have shifted to other Ramsay hospitals. Several in New South Wales, when we actually looked at the patients that we were serving, most of them were actually coming from Sydney. We will be able to provide that continuity of service to those patients from our Wentworthville clinic and our Northside clinic. We have been making these decisions effectively at some of our smaller sites where we can consolidate our services and continue to provide services to the local community. We will obviously continue to review our portfolio, but we do not have a significant plan of closures looking forward. Nat Cap, CapEx. NATCAP, we are very excited next week to be finally having NATCAP join the Ramsay network.

Speaker #2: Several in New South Wales, when we actually looked at the patients that we were serving, most of them were actually coming from Sydney. And so, we'll be able to provide that continuity of service to those patients from our Wentworthville clinic and our Northside clinic.

Speaker #2: So, we've been making these decisions effectively at some of our smaller sites, where we can consolidate our services and continue to provide services to the local community.

Speaker #2: And, you know, we'll obviously continue to review our portfolio, but we don't have a significant plan of closures looking forward. NatCap CAPEX—so, NatCap—we're very excited next week to be finally having NatCap join the Ramsay network.

Speaker #2: Obviously, once the NATCAP becomes a part of Ramsay, we'll have a much better idea of exactly where and when we want to invest. But the plan at the moment, actually on capital, is to focus on building a kitchen at NATCAP. At the moment, the NATCAP hospital gets its food from the public hospital next door.

Natalie Davis: Obviously, once NATCAP becomes a part of Ramsay, we will have a much better idea of exactly where and when we want to invest. But the plan at the moment actually on capital is to focus on building a kitchen at NATCAP. At the moment, the NATCAP Hospital gets its food from the public hospital next door. The team has basically told us that the quality of that needs to be improved. We are scaling up, as you know, across our Ramsay sites, our new food offer, which will be at your request, dining offer. At NATCAP, we are building a kitchen there to be able to provide that offer to patients, which will improve experience. We also think that will pay off in terms of financial returns.

Speaker #2: The team has basically told us that the quality of that needs to be improved, and we are scaling up, as you know, across our Ramsay sites our new food offer, which will be an at-your-request dining offer. And so at NATCAP, we're building a kitchen there to be able to provide that offer to patients, which will improve experience, and we also think that will pay off in terms of financial returns.

Speaker #2: And as we get to know the NATCAP team and the clinicians and the doctors in that area, we do understand that it has quite a high level of utilization. It's got a very strong reputation, and we have seen opportunities in that hospital to expand either theatre or cath lab capacity. So, we will put that in the plan once we get a little bit closer and understand exactly what is needed and what the opportunity is.

Natalie Davis: As we get to know the NATCAP team and their clinicians and the doctors in that area, we do understand that it has quite a high level of utilization. It has got a very strong reputation, and we have seen opportunities in that hospital to expand either theater or cath lab capacity. So we will put that in the plan once we get a little bit closer and understand exactly what is needed and what the opportunity is. Warringal and Northern, they are quite different. The Northern is a brand-new greenfield hospital. That is really still focused on ramping up in terms of impact, but it is delivering profitability. We continue to focus on really maximizing the potential of the Northern, and we will be ramping it up over the next few years. Warringal is a well-established hospital in Victoria, right next door to the Austin.

Speaker #2: Then Wringle and Northern, they're quite different. So the Northern is, you know, a brand new greenfield hospital that is really still focused on ramping up in terms of impact, but it is delivering profitability.

Speaker #2: And we continue to focus on really maximizing the potential of the Northern, and we'll be ramping it up over the next few months. It's a well-established hospital in Victoria, right next door to the Austin, and so it's a significant development. We have been progressively opening that development, including three theatres last year and the emergency department, which we effectively soft launched a couple of weeks ago. It's very pleasing to hear from the team that we're already getting quite a large number of people accessing that service, which will really provide rapid access to emergency services.

Natalie Davis: It is a significant development, but we have been progressively opening that development, including three theaters last year, and including the emergency department, which we effectively have soft launched as of a couple of weeks ago. It is very pleasing to hear from the team that we are already getting quite a large number of people accessing that service, which will really provide rapid access to emergency services in that part of Melbourne. Where necessary, we are then also treating those patients in the hospital. Warringal is, I would not call Warringal a drag. It is a very successful hospital that we are continuing to grow.

Speaker #2: In that part of Melbourne, and then where necessary, we are also treating those patients in the hospital. And so Werribee is—I wouldn't call Werribee a drag. It's a very successful hospital that we're continuing to grow.

Speaker #4: Fantastic. Thanks for answering all those questions.

Steven Wheen: Fantastic. Thanks for answering all those questions.

Steve Wheen: Fantastic. Thanks for answering all those questions.

Speaker #1: Your next question will come from Sal Hasadan of Barrenjoey. Please go ahead.

Operator: Your next question will come from Saul Hadassin of Barrenjoey. Please go ahead.

Speaker #4: Yeah good morning. Thanks for taking my questions. I'll try and stick to two. First one Anthony maybe for you the portfolio optimization just wondering where does retail pharmacy fit in to Ramsay these days we haven't heard much about what's happening with that footprint is that does that still remain a core asset or does the retail pharmacy component does that become part of the of some type of review as well?

Saul Hadassin: Yeah, good morning. Thanks for taking my questions. I'll try and stick to two. First one, Anthony, maybe for you, the portfolio optimization. Just wondering, where does retail pharmacy fit into Ramsay these days? We haven't heard much about what's happening with that footprint. Does that still remain a core asset, or does the retail pharmacy component, does that become part of some type of review as well?

Speaker #3: So look, from a pharmacy performance in FY26, it was part of the whole focus around improving cash flow and improving returns. So, pleasingly, there are initiatives in the pharmacy business that have been underpinning performance in FY26 and that will continue into FY27. So we will continue to do performance improvements, and that does include reviewing the whole portfolio and seeing how it fits into continued performance.

Anthony Neilson: So look, from a pharmacy performance in FY2027, it was part of the whole focus around improving cash flow and improving returns. So pleasingly, there are initiatives in the pharmacy business that have been underpinning performance in FY2026, and that will continue into FY2027. So we will continue to do performance improvements, and that does include reviewing the whole portfolio and seeing how it fits into continued performance.

Speaker #4: Thank you.

Saul Hadassin: Thank you.

Speaker #2: Just on that one—if you think about pharmacy, we have hospital dispensaries, which are clearly part of our hospital operations and integral to that. We then have pharmacies that are within the actual Ramsay hospital, very close by, and then we have some community pharmacies that are in places where we don't have hospitals. We still really have an opportunity, with the pharmacies that are on our sites or within our catchments, to strengthen that connection again between the hospital care and the pharmacy care that we're providing.

Natalie Davis: Just on that one, if you think about pharmacy, we have hospital dispensaries, which are clearly part of our hospital operations and integral to that. We then have pharmacies that are within the actual Ramsay Hospital, very close by. Then we have some community pharmacies that are in places where we do not have hospitals, and we still really have an opportunity with the pharmacies that are on our sites or within our catchments, to strengthen that connection again between the hospital care and the pharmacy care that we are providing.

Speaker #4: Thanks for that. And then just to follow up again—maybe one for you, Anthony—just reconciling from EBIT down to MPAT for the wholly owned funding group. Is it correct that there's about an $8 million outside equity interest in the wholly owned funding group?

Saul Hadassin: Thanks for that. Then just a follow-up, again, maybe one for you, Anthony. Just reconciling from EBITDA impact for the wholly owned funding group. Is it correct that there is about an AUD 8 million outside equity interest in the wholly owned funding group?

Speaker #3: Sorry, minority interest in the wholly owned funding group?

Anthony Neilson: Sorry, minority interest in the wholly owned funding group?

Speaker #4: Yeah that's right.

Saul Hadassin: Yeah, that is right.

Anthony Neilson: There is a small portion.

Speaker #3: Small there's a small portion.

Speaker #4: Around $8 million is, I think, what I'd calculate.

Saul Hadassin: Around AUD 8 million is, I think, is what I would calculate.

Speaker #3: Yeah, correct. I'm just looking for the page.

Anthony Neilson: Yeah, correct. I am just looking for the page.

Speaker #4: Thank you. Thanks very much. That's all I had.

Saul Hadassin: Thank you.

Anthony Neilson: Yeah.

Saul Hadassin: Thanks very much. That is all I had.

Speaker #1: Your next question will come from David Bailey of Morgan Stanley. Please go ahead.

Operator: Your next question will come from David Bailey of Morgan Stanley. Please go ahead.

Speaker #4: Thanks, good morning. I'll try and be quick. So, very strong underlying margin performance in '26, about 70 bps—just wondering if you think you can replicate that again in fiscal '27.

David Bailey: Thanks. Morning. I will try and be quick. Very strong underlying margin performance in 2026, about 70 bps. Just wondering if you think you can replicate that again in fiscal 2027.

Speaker #2: Well, as we've said on this call, we're not providing specific guidance. I think I've already spoken through, you know, the plan we have to deliver year-on-year margin improvement, noting that we will be investing $10 to $15 million in IT and technology.

Natalie Davis: Well, as we've said on this call, we're not providing specific guidance. I think I've already spoken through the plan we have to deliver year-on-year margin improvement, noting that we will be investing AUD 10 to 15 million in IT and technology.

Speaker #4: And I might have missed it. Did you say what the saving was in '26 on that digital and data spend?

David Bailey: And I might have missed it. Did you say what the saving was in 2026 on that digital and data spend?

Speaker #2: No we didn't.

Natalie Davis: No, we didn't.

Speaker #4: Okay. Maybe just in terms of the comment around indexation to offset cost inflation, I mean, looking forward, are you expecting the insurers to be able to pull out costs or are you sort of thinking that premiums will increase going forward? So, if there’s perfect pass-through on the hospital side, I’m just wondering your thoughts as to the implications on the insurer and the consumer side.

David Bailey: Okay. Maybe just in terms of the comment around indexation to offset cost inflation. Looking forward, are you expecting the insurers to be able to pull out costs or are you thinking that premiums will increase going forward? So if there's perfect pass-through on the hospital side, just wondering your thoughts as to the implications on the insurer and the consumer side.

Speaker #2: Well, I think first of all, we're looking to see the level of the payout ratio still increase back to the levels that it was pre-COVID, and there is still a long way to go on that, as you've seen on the chart. So I think that's really important for Australians to know—that the premium increases that they are being asked to pay are being passed through to hospitals to cover costs. And yes, you know, it's important for private health insurers to run efficient businesses, just like it's up to us to run efficient and effective hospitals, so that needs to happen as well.

Natalie Davis: I think first of all, we are looking to see the level of the payout ratio still increase back to levels that it was pre-COVID, and there is still a long way to go on that as you have seen on the chart. I think that is really important for Australians to know that the premium increases that they are being asked to pay are being passed through to hospitals to cover costs. Yes, it is important for private health insurers to run efficient businesses, just like it is up to us to run efficient and effective hospitals. That needs to happen as well. We are very conscious of the affordability of private health insurance, and we will continue to engage with the government on sector-wide reform and providing more transparency and simplicity around private health insurer products.

Speaker #2: And we're very conscious of you know the affordability of private health insurance and we'll continue to engage you know with the government on sector-wide reform and providing you know more transparency and simplicity around private health insurer products so I think you know the whole sector really needs to work on doing everything that they can to make sure that premiums continue to be affordable for Australians and hospitals and insurers are running as efficiently and effectively as they can.

Natalie Davis: I think the whole sector really needs to work on doing everything that they can to make sure that premiums continue to be affordable for Australians and hospitals and insurers are running as efficiently and effectively as they can.

Speaker #4: So, for 2020 and looking forward, given the wage increases coming through, is it your expectation that you'll continue to be able to offset the cost inflation through indexation in 2028 and 2029?

David Bailey: Looking forward, given the wage increases coming through, it is your expectation you will continue to be able to offset the cost inflation through indexation, 2028, 2029?

Speaker #2: So, we're not giving specific guidance on '28, '29 at this point, but what we are saying is we will continue to seek revenue indexation that is in line with our cost indexation.

Natalie Davis: We are not giving specific guidance on 2028, 2029 at this point. What we are saying is we will continue to seek revenue indexation that is in line with our cost indexation.

Speaker #4: Got it. Thank you.

David Bailey: Got it. Thank you.

Speaker #1: Your next question will come from Christine Trent of Macquarie. Please go ahead.

Operator: Your next question will come from Christine Trinh of Macquarie. Please go ahead.

Speaker #5: Morning, Natalie and Anthony. Thanks for taking my questions and for the thorough answers so far. I'll also try to be quick here. To start, just on utilization of theatres—up 70%, including the new sites—what was that on a like-for-like basis, just excluding those new sites, please?

Christine Trinh: Morning, Natalie and Anthony. Thanks for taking my questions and for the thorough answers so far. I will also try to be quick here. To start, just on utilization of theaters up 70%, including the new sites. What was that on a like-for-like basis, just excluding those new sites, please?

Speaker #2: So we haven't given the like-for-like, but obviously, it's been a very significant improvement on a like-for-like basis because we've added.

Natalie Davis: We have not given the like-for-like, but obviously, it has been a very significant improvement on a like-for-like basis, because we have added-

Christine Trinh: Higher than the 70?

Speaker #5: Higher than the 70?

Speaker #2: So the 70 includes—the 70 includes the impact of the new theaters, so the 90 basis point improvement would have been a lot higher if we had only taken a like-for-like.

Natalie Davis: The 70 includes the impact of the new theaters. The 90 basis point improvement would have been a lot higher if we had only taken a like-for-like.

Speaker #5: Perfect. And then just on the provision—$21 million for the Fair Work Commission case—just your assumptions in that provision, and maybe the number of nurses that might impact out of the 35,000 workforce, please?

Christine Trinh: Perfect. Then just on the provision, AUD 21 million for the Fair Work Commission case, just your assumptions in that provision and maybe the number of nurses that might impact out of the 35K workforce, please.

Speaker #2: Okay so that is a provision we've made which we've outlined in the account. It's specific to a clause in our New South Wales old EBA and so in the current EBA in New South Wales that clause has been amended and so that what you see in the counts is a remediation provision for annual leave loading related to a clause that was in the previous New South Wales EBAs and so there was an interpretation of that clause that was different to the way that we had historically been applying annual leave loading in New South Wales to nurses and that fair work commission ruled you know in a decision in December 24 that our interpretation was not correct and we accept that decision.

Natalie Davis: Well, that is a provision we have made, which we have outlined in the accounts. It is specific to a clause in our New South Wales old EBA. In the current EBA in New South Wales, that clause has been amended. What you see in the accounts is a remediation provision for annual leave loading related to a clause that was in the previous New South Wales EBA. There was an interpretation of that clause that was different to the way that we had historically been applying annual leave loading in New South Wales to nurses. That Fair Work Commission ruled in a decision in December 2024 that our interpretation was not correct, and we accept that decision. We have been working since then on effectively the calculations to remediate.

Speaker #2: We have been working since then on, effectively, the calculations to remediate. It has to be done on an individual team member level because you have to understand the roster that that person would have been rostered.

Natalie Davis: It has to be done on an individual team member level because you have to understand the roster that that person would have been rostered on during the time they have taken annual leave. We have been communicating with the team around our progress on that, and we will be remediating that in the next couple of months.

Speaker #1: It was on during the time they've taken annual leave, and so we've been communicating with the team around our progress on that. We'll be remediating that in the next couple of months.

Speaker #2: And just one final one. Just given the recent step-up in EBAs across the states, do you think we've reached a bit of an equilibrium here?

Christine Trinh: Okay, and just one final one. Just given the recent step up in EBAs across the states, do you think we have reached a bit of an equilibrium here? Just trying to understand whether, I guess, future EBAs will come in at more standard levels, providing, I guess, less of a cost shock other than what we have seen over the last 12 months.

Speaker #2: Just trying to understand whether I guess future ebas will come in at more standard levels , providing , I guess , less of a cost shock over the other than what we've seen over the last 12 months

Natalie Davis: I think we are still going to see the pressure on wages coming through. We are trying to effectively, as you have heard me talk to today, negotiate EBAs with a longer tenure. The Victorian and the Queensland EBAs that we have negotiated are for 4 years to give us and the team more certainty around wages over the foreseeable future. But I do think that we just need to be conscious of the Fair Work Value case, and the impact of that, so we are still waiting for that decision. But we expect that impact will be phased over a number of years.

Speaker #1: I think we're still going to see the pressure on on wages coming through . We are trying to effectively , as you've heard me talk to today , negotiate Ebas with a longer tenure .

Speaker #1: So the Victorian and the Queensland EBAs that we've negotiated are for four years, to give us and the team more certainty around wages over the foreseeable future.

Speaker #1: But I do think that we just need to be conscious of the Fair Work value case and the impact of that. So, we're still waiting for that decision, but we expect that the impact will be phased over a number of years.

Speaker #1: And probably more towards for us , the impact will be more towards the outer years of our planning period , both because of the phasing of the decision , but also because of the effectively the buffer .

Natalie Davis: Probably more towards, for us, the impact will be more towards the outer years of our planning period, both because of the phasing of the decision, but also because of effectively the buffer we have between the rates that we pay and the entry-level award rate that is the subject of that decision.

Speaker #1: We have, between the rates that we pay and the entry-level award rate — that's the subject of that decision.

Speaker #2: And sorry, just one quick follow-up. Just the number of nurses that are on award wages compared to EBAs at the moment.

Christine Trinh: And sorry, just one quick follow-up. Just the number of nurses that are on award wages compared to EBAs at the moment, I would assume it is a small proportion?

Speaker #2: I would assume it's a small proportion.

Speaker #1: Yes. Our nurses are on EBAs.

Natalie Davis: Yes. So our nurses are on the EBAs.

Speaker #2: Yep. Okay. Thank you.

Christine Trinh: Yep. Okay. Thank you.

Speaker #1: Okay So I think

Natalie Davis: Okay. So I think

Operator: There are no further questions. Mm-hmm.

Speaker #3: Questions

Natalie Davis: Apologies to the operator. I think that's the end of the questions. Thank you very much, everyone, for your thoughtful and very thorough questions today. We look forward to welcoming NatCap's hospital next week. It's an exciting moment for us, a hospital with a leading reputation in the Canberra catchment. As you've heard from today's call, the whole team is very much focused on continuing to deliver great healthcare right across Australia and in our global operations, and continuing the transformation of Ramsay. We look forward to speaking more about it. Thank you.

Speaker #1: Apologies for the operator . I think that's the end of the questions . And thank you very much , everyone , for your thoughtful and very thorough questions today .

Speaker #1: We look forward to to welcoming that cap hospital next week . It's an exciting moment for us . You know , a hospital with a leading reputation in in the cabinet catchment .

Speaker #1: And as you've heard from today's call, the whole team is very much focused on continuing to deliver great healthcare, right across Australia and in our global operations.

Speaker #1: And continuing the transformation of Ramsay. And we look forward to speaking more about it. Thank you.

Operator: That does conclude our conference for today. Thank you for participating, and you may now disconnect.

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Q4 2026 Ramsay Health Care Ltd Earnings Call

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