Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Macquarie Securities Emerging Leaders Conference 2007
15 slides from Ramsay Health Care's conference presentation, May 2, 2007
Slide 1: Macquarie Securities Emerging Leaders Conference
oe EN RAMSAY HEALTH CARE Macquarie Securities Emerging Leaders Conference May 2007 Managing Director Pat Grier
Slide 2: Ramsay Profile
= RAMSAY RAMSAY PROFILE HEAL ARE. Australia’s largest private hospital operator > 70 hospital facilities in Australia and Indonesia > More than 7,200 beds > More than 20,000 employees > 28% of private hospital admissions > Over 750,000 patients per year >» Over 455,000 procedures per year > Over 1,0
Slide 3: Ramsay Strategic Strengths
= RAMSAY STRATEGIC STRENGTHS CARE Size and strategic position of our hospital portfolio brings market strengths and growth prospects > Economies of scale » Operating and financial leverage > Portfolio rationalisation and maximisation > Relationships with stakeholders > Strong influence in growing ma
Slide 4: A Clear Strategy
= RAMSAY A CLEAR STRATEGY HEALTH CARE Our strategy has guided our growth path and delivered results Focus on management of core hospital business » Underwrites strong organic growth Grow through investing in brownfields development >» Higher return on investment >» Expands capacity >» Enhances portf
Slide 5: Operating in a Growth Industry
RAMSAY OPERATING IN A GROWTH INDUSTRY Environment and demographics support continuing strong demand for private hospital services > Balanced health care system > Private health insurance membership remains at historically high levels > Ramsay in strong position to manage industry challenges includin
Slide 6: Half Year Overview
ae R amy HALF YEAR OVERVIEW CARE Solid profit rise in half year to Dec06, built on strong year ago profit level boosted by Affinity acquisition » Half year core EPS growth tracking towards full year guidance for 15% - 20% increase in core EPS » Pleasing results from Ramsay and former Affinity hospit
Slide 7: Financial Highlights
RAMSAY FINANCIAL HIGHLIGHTS JH CARE Continuing operations: Revenue up 7% to $1.06 billion Group EBIT up 10% to $108.2 million Core Net Profit up 22% to $56.0 million Group EBIT margin rises to 10.2% from 10.0% Core EPS up 21% to 27.9 cents 1st half dividend up 24% to 13.0 cents Basic EPS up 33% to 2
Slide 8: FY 2007 Outlook
ae RAMSAY HEAL" ARE. FY 2007 OUTLOOK On track to achieve growth in full year Core EPS in the range of 15% to 20% targeted at start of financial year
Slide 9: Future Growth
as R AMSAY FUTURE GROWTH CARE » Further benefits of Affinity acquisition expected w Solid organic growth to continue » Brownfields expansion > Approximately $550 mln expansion capex underway, funded from cash flow and existing facilities > Lower risk, higher return investment in core business > Stri
Slide 10: Future Growth: Brownfields
#3 FUTURE GROWTH: BROWNFIELDS RAMSAY EXPANSION ARE, » Many brownfields projects are progressing well through the foundation and development phases » Agreement with WA Govt re major redevelopment of Joondalup for both the public and private hospital > Ramsay commitment $145 mln, WA Govt $131 mln » Ne
Slide 11: Future Growth: Brownfields Expansion
= FUTURE GROWTH: ANIA BROWNFIELDS EXPANSION Cumulative Capex Spend (indicative) FYO7 FYO8 FYOS B Brownfield Capex H'Catch-up’ Capex » Average construction profile 18 months = Ramp up to ROI of 15% on brownfields over 2 to 3 years, post construction completion = ‘One-off catch-up’ capex mainly relate
Slide 12: Future Growth: Investigating Acquisitions
= FUTURE GROWTH: RAMSAY INVESTIGATING ACQUISITIONS Investigating acquisitions » Further Australian hospital acquisitions in areas where there are no competition issues >» Opportunities to expand Ramsay hospital franchise offshore » Other areas of health care close to core management competency >» In
Slide 13: Investigating Acquisitions: Offshore Focus Asia
FUTURE GROWTH: INVESTIGATING ACQUISITIONS Offshore Focus » Asia » Strong growth outlook > Generally deregulated, not price controlled (supply and demand) » Acquisition opportunities limited, taking disciplined approach to valuations » Generally hospitals are full service providers, including diagnos
Slide 14: Investigating Acquisitions: Offshore Focus UK
FUTURE GROWTH INVESTIGATING ACQUISITIONS Offshore Focus : UK » Similar system to Australia >» NHS looking to broaden provider base » Private providers to NHS patients an emerging trend » Health care assets in demand >» RHC flexible in relation to structures, may be better to have partners 14
Slide 15: Ramsay Health Care
oe EN RAMSAY | HEALTH CARE
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