Financial Data and Key Metrics Changes - The profit for the year decreased to CHF 7.9 million from CHF 10.7 million, attributed to a decline in dividend income and option income [7] - The management expense ratio improved slightly to 0.54% from 0.56%, indicating good value for an investment vehicle in this sector [8] - The ordinary dividend was maintained at €0.65, with a portfolio return of 11.4%, underperforming the benchmark return of 15.2% [9][11] Business Line Data and Key Metrics Changes - The portfolio's performance was driven by significant contributors such as Temple and Webster, which increased by 127%, and other companies like Hub24 and Life360 [25] - The underperformance was partly due to the absence of strong representation in high-performing sectors like gold [14] - The company sold down positions in high-performing stocks to manage volatility and maintain dividend capacity [27] Market Data and Key Metrics Changes - The company noted a strong recovery in the market after a significant drop earlier in the year, with a return to near peak levels by June [61] - Approximately 35% of revenue from the top 20 stocks comes from offshore sources, indicating a balanced exposure to global markets [72] Company Strategy and Development Direction - The company aims to provide long-term investment returns through holdings and attractive fully franked dividends, focusing on small and mid-sized companies [5][6] - A one-for-seven rights issue was executed to raise capital, allowing for portfolio rebalancing and lower management expense ratios [16][21] - The company plans to take a patient approach to deploying capital, focusing on long-term value rather than short-term market fluctuations [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term investment approach despite short-term volatility, emphasizing the importance of patience in capital deployment [63] - The company remains cautious about the current market environment, noting that high growth companies are well-rated, which may limit capital deployment opportunities [69][70] Other Important Information - The company has a history of paying out more in dividends than it receives from share purchase plans, indicating strong shareholder demand for investment opportunities [17] - The capital raising was well-received, with a take-up rate of 119%, leading to a fair outcome for shareholders [21][23] Q&A Session Summary Question: Where is the Australian market developing in a bull market? - The company noted that earnings and valuations drive share prices, but current economic growth is not strong enough to support significant re-ratings in valuations [67][68] Question: What percentage of portfolio revenue comes from global sources? - Approximately 35% of revenue from the top 20 stocks comes from offshore, with a mix of domestic and international businesses [72][73] Question: Why does the company still hold IDP? - The company believes IDP remains the market leader in its space despite current pressures, and it is important to weather the downturn [76][78] Question: What is the view on Macquarie Technology Group's development approval? - There are concerns about development approvals due to local council issues, but the company has faith in management's long-term decisions [80][82] Question: Why was Sigma Healthcare exited from the portfolio? - The exit was due to a rapid increase in value post-merger, making it difficult to justify maintaining a position given its size and valuation [84] Question: Thoughts on Gentrack's transition? - Gentrack has evolved into a robust business, but it may need time to consolidate its growth after a rapid increase in size [90] Question: Will IPD Group pursue further acquisitions? - The company expects IPD Group to continue acquiring businesses, but these will likely be smaller and not thesis-changing [93]

Group 1 - Natalie Davis has been appointed as the new Chairman of the Board of Ramsay Générale de Santé, succeeding Craig McNally who held the position since 2017 [1][2] - Craig McNally is recognized for his eight years of commitment, particularly during the health crisis of 2020-2021, and for leading the Group to become a Mission Company in 2023 [2] - Natalie Davis brings extensive experience in service and customer relations, having previously worked at McKinsey & Company and Woolworths Group, and is expected to support the Group's objectives in Europe [2][4] Group 2 - Ramsay Santé is the European leader in private hospitalization and primary care, employing 38,000 staff and serving 12 million patients across 465 establishments in five countries: France, Sweden, Norway, Denmark, and Italy [5] - The Group is committed to improving health through innovation and participates in public health service missions, ensuring comprehensive healthcare pathways from prevention to follow-up [6] - Ramsay Santé invests over €200 million annually in innovation to enhance care pathways and strengthen healthcare access for all [7]

Core Insights - The company reported a 5.1% increase in unaudited group revenue for the nine months ending March 31, 2025, reaching €3.9 billion, driven by activity volume growth and the acquisition of Cosem primary care centers [3][5][21] - EBITDA remained almost stable at €441 million, reflecting a slight decrease of 0.8% compared to the previous year, primarily due to the impact of government funding changes and inflation [3][9][21] - The French market continues to face challenges with low tariffs and funding interruptions, impacting overall financial performance [3][10][13] Revenue and Activity - Revenue growth in France was 6.6%, supported by the acquisition of 12 Cosem primary care centers and an increase in patient volumes [6][21] - The company experienced a 3.2% organic sales growth, indicating solid underlying performance despite external pressures [3][5] - Total admissions in French hospitals rose, confirming the group's role in addressing the post-Covid backlog of elective care [7] Cost Management and EBITDA - EBITDA was impacted by a €25 million reduction in the French government's revenue guarantee and a €14.7 million decrease due to the government's withholding of the prudential coefficient [9][10] - Cost-saving measures, including reductions in agency staff and administrative costs, were implemented to counteract the financial pressures from inflation and funding cuts [3][10] - The EBITDA margin decreased to 11.3% from 12.0% year-on-year, reflecting the challenges faced in maintaining profitability [21] Cash Flow and Financing - Net cash flow from operating activities decreased to €282 million, down €50 million from the previous year, primarily due to unfavorable working capital variations [12][24] - The company's net financial debt as of March 31, 2025, was €3.86 billion, with a restated net leverage ratio of 5.7x, indicating a slight increase from the previous period [12][22] - The company repriced its senior debt facilities at more favorable margins, providing a long-term financing framework to support its strategic plan [4][12] Strategic Developments - The company is focused on expanding its integrated care services and enhancing patient experiences through digitalization and AI tools [3][13] - Ramsay Santé continues to engage with European governments to secure fair funding for the private healthcare sector, which plays a critical role in the overall healthcare system [13][15] - The group is investing over €200 million annually to support the evolution of care pathways across various domains [16]