Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Macquarie Connections – Australia Conference 2012
21 slides from Ramsay Health Care's conference presentation, May 2, 2012
Slide 1: Ramsay Health Care – Macquarie Connections Australia Conference
For personal use only Ramsay Health Care Macquarie Connections – Australia Conference 2 May 2012 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only Overview & Industry Fundamentals Growth Story & Formula for Success Half-year Financial Highlights Financial Highlights & Operating Environment − Australia − Europe: United Kingdom & France Refinancing Capital Management Growth Strategy Brownfield Develop
Slide 3: Ramsay Health Care – Overview
RAMSAY HEALTH CARE – OVERVIEW For personal use only Australia’s largest private hospital operator & growing global company − 117 hospitals & facilities across three continents; circa 10,000 beds − Over 30,000 staff: 22,000+ in Australia including 13,500 nursing staff, 650 doctors − 143 accredited
Slide 4: Strong Industry Fundamentals - Global
Strong Industry Fundamentals - Global For personal use only Demand for healthcare driven by: Ageing population (first of boomers turned 65 in 2010) Increasing chronic disease burden: − Coronary artery disease & heart failure − Diabetes − Obstructive pulmonary disease Higher patient expectation
Slide 5: Operating Revenue - Compound Annual Growth Rate
OPERATING REVENUE - Compound Annual Growth Rate (CAGR) For personal use only A$m 4.0 CAGR of 24.6% 3.5 Revenue Growth Achieved through 3.0 our consistent focused strategy 2.5 of: Estimate Organic growth 2.0 and 1.5 Brownfield capacity 1.0 expansion and 0.5 Acquisitions - 1998 1999 2000 2001 20
Slide 6: Core EPS - Compound Annual Growth Rate
CORE EPS - Compound Annual Growth Rate (CAGR) For personal use only Cents per Share 120 CAGR of 16.4% 100 80 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Financial Year ended 30 June Core EPS CAGR, Core EPS 6
Slide 7: Delivering Strong Shareholder Returns
DELIVERING STRONG SHAREHOLDER RETURNS For personal use only Ramsay Total Shareholder Return (TSR) versus S&P/ASX 100 Accumulation Index (share price appreciation plus reinvestment of dividends) Compound Annual Growth Rate 23-Apr-12 (CAGR) 1,460% Ramsay Health Care TSR 20.7% S&P/ASX 100 Acc. Index 7.
Slide 8: Our Formula for Success
OUR FORMULA FOR SUCESS For personal use only Management and culture − Long term, stable management team, special culture (“The Ramsay Way”) − Ramsay can export proven management model and blend it with local expertise Strong growth strategy − Ramsay’s growth strategy has remained clear and consi
Slide 9: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only HALF-YEAR ENDED 31 DECEMBER 2011 2010 A$m A$m Increase Australia/ Europe (3) Group Group Indonesia Operating Revenue 1,591.9 378.2 1,970.1 1,864.1 5.7% EBITDA 254.0 45.8 299.8 271.8 10.3% EBIT 201.2 27.1 228.3 204.6 11.6% Core NPAT (1) 132.0 115.8 14
Slide 10: Geographical Segments
GEOGRAPHICAL SEGMENTS For personal use only Operating Revenue EBITDAR* 81% 76% 19% 14% 5% 5% Australia/Indonesia Australia/Indonesia United Kingdom United Kingdom France France Strong Australian business is the largest contributor to earnings and cash flow Well placed to expand UK and French ope
Slide 11: Group Operational Highlights
GROUP OPERATIONAL HIGHLIGHTS For personal use only Strong growth in our Australian business continues Operating leverage continues to drive margin growth Completed brownfield developments adding to EBIT & EPS Successful refinancing of debt facility in November 2011 High cash conversion rat
Slide 12: Financial Highlights & Operating Environment – Australia
FINANCIAL HIGHLIGHTS & OPERATING ENVIRONMENT – AUSTRALIA For personal use only Strong & growing Australian business is the largest contributor to earnings & cash flow Completed Brownfield developments adding to EBIT Positive demographics PHI membership continues to grow, with approximately 5
Slide 13: Financial Highlights & Operating Environment – Europe
FINANCIAL HIGHLIGHTS & OPERATING ENVIRONMENT – EUROPE For personal use only United Kingdom EBITDAR margins of 25% remain strong despite: – Transition to ‘normal’ tariff scenarios in UK – Result driven by growth in NHS admissions which now comprise more than 60% of total Ramsay UK admissions Cont
Slide 14: Refinancing
REFINANCING For personal use only In November 2011, a new underwritten debt facility was successfully executed. Subsequently this facility was syndicated, primarily to banks from Australia, Japan, UK and Asia The new facility has: − Facility limits of A$1.2 billion, £260 million & €300 million.
Slide 15: Capital Management
CAPITAL MANAGEMENT For personal use only Leverage = Net Debt ÷ EBITDA 6 Affinity Acquisition $1.4B Cash Flow 5.1 $m 5 340 Capio UK Acquisition £193M 290 4 3.7 240 3.3 Ramsay Santé Acquisition €87M 190 3 2.7 2.7 2.4 140 1.9 Dec'10 Dec'11 2 1.7 Gross Operating Cash Flow EBITDA 1 FY05 FY06 FY07 FY08 FY
Slide 16: Successful & Sustainable Growth Strategy
SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY For personal use only Organic Public/Private Brownfields Acquisitions Collaborations • Underpinned by • Unmet demand • Potential for more • Exploring further demographics, driving Ramsay’s partnerships to acquisitions in the quality portfolio of ongoing devel
Slide 17: Brownfield Developments Australia
BROWNFIELD DEVELOPMENTS AUSTRALIA For personal use only Proven track record of undertaking successful brownfield expansion Extensive program of hospital redevelopments & expansions currently underway (>$800M approved since 2007) Expect ongoing investment of approx. $100M pa Completed brownfi
Slide 18: Public/Private Collaborations – Joondalup Health Campus
PUBLIC/PRIVATE COLLABORATIONS For personal use only Joondalup Health Campus: 500 bed public/private hospital expanding to 650 beds Largest hospital in Perth’s Northern corridor Agreement with WA government Treated public & private patients since 1996 In 2011 – 81,500 ED admissions; 18,500
Slide 19: Public/Private Collaborations – Sunshine Coast
PUBLIC/PRIVATE COLLABORATIONS For personal use only Sunshine Coast: Public/Private hospital in partnership with QHealth 200 beds; 8 theatres; day centre; day chemo; ICU Construction commenced 1 Sep 2011 Completion: Dec 2013 19
Slide 20: Outlook
OUTLOOK For personal use only Ageing demographic & growing chronic disease burden is leading to increased demand for healthcare Ramsay anticipates ongoing investment in brownfield projects in the order of $100 million per annum Completed brownfield projects adding to earnings at EBIT & EPS lev
Slide 21: Questions
For personal use only Questions
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