Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — UBS 2005 Healthcare Conference
16 slides from Ramsay Health Care's conference presentation, Oct 26, 2005
Slide 1: UBS 2005 Healthcare Conference
pd WA HEALTH CARE UBS 2005 HEALTHCARE CONFERENCE October 2005 PAT GRIER, MANAGING DIRECTOR
Slide 2: Agenda
AGENDA v Ramsay profile post Affinity The private hospital industry v FY 2005 results summary Update on Affinity Outlook Vv Vv v
Slide 3: The 'New Ramsay'
nab cay The ‘New Ramsay’ HEALTH CARE » Premier private hospital portfolio in Australia, annual revenue in excess of $2 billion » Hospital Portfolio (post divestments) to have around 30% market share (based on number of hospital beds) >» 74 hospitals and clinics (including 3 in Indonesia) > Over 7,50
Slide 4: Pro Forma Revenue by Division and by State
Pro Forma Revenue by Division Pro Forma Revenue by State Rehab Psychiatric ¥ 4% 2% Aged Care 1% Veteran 14% “See i) dh ik Med/Surg Other 60%
Slide 5: Affinity Acquisition Rationale
aaneay Affinity Acquisition Rationale HEALTH CARE » Opportunity to bring together two companies with the best portfolios of quality hospitals » Staff, doctors, infrastructure >» Strong referral base » Significant upside due to: » Integration synergies >» Ongoing improved micro-management » Enhance R
Slide 6: A Growth Industry
RAMSAY A Growth Industry HEALTH CARE Australian private hospital industry is a growth industry » Positive macro private hospital environment remains supportive for quality hospital operators » Private health insurance membership remains around historical highs «» Private investment in healthcare ind
Slide 7: Ramsay's Growth Strategy
RAMSAY Ramsay’s Growth Strategy HEALTH CARE Focus on management of core hospital business » Underwrites strong organic growth » Growth through investing in brownfield development >» Higher return on investment >» Expands capacity » Enhances portfolio » Grow through acquisitions in the hospital secto
Slide 8: Revenue Growth Time Line
as . , ramsay Revenue Growth Time Line LTH CARE Affinity Acquired - $m Apr'05 2,400 5 Ellis Aged Care 2,200 Facilities Acq Feb’05 a 2,000 _ Hollywood Veteran 4 : | " Perth acquired & | ee . 1,800 privatised Jan’94 : z = : Greenslopes Major | a 1,600 Greenslopes Veteran Expansion Opened May'03__ on B
Slide 9: FY2005 results overview
as . RAMSAY FY2005 results overview CARE » Core NPAT up 27% to $54.1m a» Group revenue up 88% to $1,442.8m a» Group EBITA up 62% to $125.8m » Core EPS of 39 cps, up 18% a Final dividend 11.5cps, fully franked, full year dividend to 20cps, up 14% » Dividend reinvestment plan reinstated
Slide 10: FY2005 results - excluding Affinity
a FY2005 results — excluding Affinity CARE Ramsay results excluding Affinity: » Core net profit up 21% to $51.8m a» Revenue up 44% to $1.1bIn > Excluding Benchmark revenue rose 12.3% » EBITA up 25% to $96.8m > Excluding Benchmark EBITA rose 11% » EBITA margin (excluding Benchmark) holding at 10%, de
Slide 11: Operational Update
Operational Update Sale of 14 hospitals to Healthscope targeted for completion early November, strong price realised Divestment process for additional 5 hospitals underway, expect shortlist within month Hold separate arrangement for non-divestment hospitals lifted in August Affinity integration unde
Slide 12: Affinity update
Affinity update Pleased with initial Affinity results (acquired 14 April) despite hold separate arrangements On track to meet prospectus expectations to be EPS neutral to mildly accretive in FY2006 Confident of at least achieving targets for synergies > Pre-tax cost synergies of $35m per annum targe
Slide 13: Outlook
Outlook Affinity acquisition enhances Ramsay’s long- term growth potential e 15t Phase - Acquisition synergies » Integration » Economies of Scale e 2"¢ Phase - Upside through value-added management, margin improvement e 3 Phase - Brownfield capacity expansion >» Future industry capacity shortage
Slide 14: Outlook
Outlook » FY2006 focus: > Implement Affinity integration plan, realise synergy targets for year > Continued focus on core hospital management expertise > Effectively use robust cash flow to reduce gearing and invest in enhancing quality portfolio » FY2006 year of building platform for strong growth
Slide 15: Outlook
Outlook » FY2006 post-divestments: > Core net profit growth expected to be significantly higher than last year due to Affinity contribution > But targeting low double-digit core EPS growth (after payment of CARES dividend) due to more shares on issue » Over medium term, profit growth to be driven by
Slide 16: Questions
Questions