45 EBITDA growth could have been even stronger if not for the translation impact. PATMI: Our PATMI (ex EI) demonstrated strong growth, increasing by 32% to RM1.7 billion. Our PATMI reached RM2.7 billion, a 10% decrease compared to the previous year. This decline is primarily attributed to the absence of substantial one-off gains recorded in 2023, namely the RM873 million gain from the IMU divestment and the RM116 million gain from the Gleneagles Chengdu divestment. Capital Management and Liquidity: As a global healthcare operator, IHH strongly values long-term financial sustainability. Our consistent generation Outlook We are confident in the strong financial foundation established in FY2024. Our strategic investments in capacity, facilities, and operational efficiencies have driven significant revenue and EBITDA growth, coupled with prudent financial management and increased shareholder dividends. We are strategically positioned to capitalise on the rising global demand for quality healthcare. Our recent acquisitions and developments, particularly in Malaysia and India, of strong free cash flow and prudent debt management are key to this. In 2024, our net debt-to-equity ratio was 0.39, which would have been 0.27 excluding the financing for Island Hospital. Net cash from operations reached RM4.3 billion, ending the year with a RM1.4 billion cash balance. This strong financial position enables us to confidently fund operational expenses, including dividend distributions and bonus payouts, pare down debts, and meet planned capital expenditures in 2025. Return on Equity (ROE): We strive to maximise shareholder returns and increase ROE growth. In 2024, our full-year ROE was 9.0%, up from 1.3% in 2020. will expand our reach and enhance our service offerings. We will continue to optimise existing assets and drive operational excellence to ensure sustainable growth and profitability. While we acknowledge industry-wide challenges of rising cost pressures, including inflation, higher staff expenses, payor pressures from the public and private insurers, as well as net finance costs from our expansion strategy, we are committed to proactive management. We will diligently manage our costs, relationships with payors, and exercise financial prudence. Dividends We are committed to delivering consistent shareholder value through regular dividend distributions. The Board has declared a second and final cash dividend of 5.5 sen per share, paid on 28 April 2025, bringing the total ordinary dividend for FY2024 to 10.0 sen per share. This includes the interim dividend of 4.5 sen per share paid on 30 October 2024. This total ordinary dividend represents an 11% increase over FY2023’s total ordinary dividend and a payout ratio of approximately 40%, exceeding our dividend policy mandate of 30%. Our dividend strategy reflects our strong financial performance while maintaining financial discipline, ensuring long-term success for IHH and all stakeholders. Despite the dynamic healthcare landscape, we are confident that our strategic priorities and disciplined financial approach will enable us to navigate challenges and seize opportunities. We will continue to prioritise shareholder value, invest in our people and infrastructure, and deliver exceptional patient care. We are excited about the future and remain committed to building on our strong performance, delivering long-term value for all stakeholders. Operating Cash Flow Key Priorities for Capital Deployment Invest in Growth • Organic growth via capacity building in existing facilities and increasing bed occupancy • Invest in medical technology to improve clinical outcomes • Rejuvenate existing hospitals to improve patient experience • Digital innovation to increase productivity and enhance service delivery • Further develop the laboratory segment Drive Shareholder Returns • Total FY2024 ordinary dividend: 10.0 sen per share, comprising interim dividend of 4.5 sen per share and second and final dividend of 5.5 sen per share. • 9.0% ROE Acquire Strategic Assets • Explore merger and acquisition in existing and/or new adjacent markets • Strict financial discipline with a focus on returns • EPS and ROE accretive Capital Allocation Framework
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