Ramsay Health Care Limited · ASX:RHC

Ramsay Health Care — Investor Presentation (November 2010)

29 slides from Ramsay Health Care's investor presentation, Nov 16, 2010

  1. Slide 1: Christopher Rex – Managing Director

    For personal use only Christopher Rex – Managing Director 16 November 2010

  2. Slide 2: Agenda

    AGENDA For personal use only  Our people  A global company  Group - FY10 highlights  Australia - FY10 highlights, operating environment  UK - FY10 highlights, operating environment  Ramsay Santé  France - operating environment  Our growth strategy  Brownfield developments update  Capital m

  3. Slide 3: Our People

    OUR PEOPLE For personal use only Our people are our most important asset  Our culture – ‘The Ramsay Way’  Caring for our people: our patients, our staff, our doctors  Caring for staff development  Caring for staff and patient safety  Caring for our environment  Caring for our risks 3

  4. Slide 4: A Global Company

    A GLOBAL COMPANY For personal use only  Australia’s largest private hospital operator  Recently admitted into the S&P/ASX100  One of the largest private hospital operators in the world  Operating on three continents  Employing more than 30,000 people 4

  5. Slide 5: Group FY10 Highlights

    GROUP FY10 HIGHLIGHTS For personal use only YEAR ENDED 30 JUNE 2010 2009 % $m $m Increase Australia/ UK France(1) Group(1) Group Indonesia Operating Revenue 2,716.7 628.0 54.6 3,399.3 3,223.8 5.4% EBITDA 369.9 90.4 8.5 468.8 411.6 13.9% EBIT 280.0 48.4 5.4 333.8 303.3 10.0% Core NPAT (2) 178.5 146.4

  6. Slide 6: Group FY10 Highlights

    GROUP FY10 HIGHLIGHTS For personal use only Group EBITDA up Group Core NPAT up 13.9% 21.9% 178.5 468.8 146.4 411.6 123.1 342.1 110.9 272.1 $MILLIONS $MILLIONS FY’07 FY’08 FY’09 FY’10 FY’07 FY’08 FY’09 FY’10 Group Core EPS up Total Dividend up 14.0% 14.5% 84.5 74.1 43.5 60.7 38.0 CENTS PER SHARE

  7. Slide 7: FY10 Performance – Australian Hospitals

    FY10 PERFORMANCE – AUSTRALIAN HOSPITALS For personal use only YEAR ENDED 30 JUNE 2010 2009 % $m $m Increase Operating Revenue(1) 2,279.6 2,110.7 8.0% EBITDA(1) 417.2 372.5 12.0% EBIT(1) 340.3 304.9 11.6% EBITDA Margin (1) 18.3% 17.6% 70bps EBIT Margin(1) 14.9% 14.4% 50bps  Hospitals in Australia, t

  8. Slide 8: Operating Environment – Australia

    OPERATING ENVIRONMENT AUSTRALIA For personal use only  Positive demographics – Ageing population • Proportion of population aged 65+ to grow from 14.3% to 25.7% by 2050* – Expanding population – Increasing life expectancy • Australia has the third-highest life expectancy in the OECD*  Health insur

  9. Slide 9: FY10 Performance – UK Hospitals

    FY10 PERFORMANCE – UK HOSPITALS For personal use only YEAR ENDED 30 JUNE 2010 2009 % £m £m Increase Operating Revenue 350.2 318.0 10.1% EBITDAR 90.7 74.8 21.3% EBIT 26.9 20.5 31.2% EBITDAR Margin (%) 25.9% 23.5% 240 bps  Revenue growth reflects increase in NHS activity which now comprises 54% of Ra

  10. Slide 10: Operating Environment – UK

    OPERATING ENVIRONMENT UK For personal use only  Positive demographics – Ageing population • Proportion of population aged 65+ to grow from 16.7% to 26.2% by 2050* – Expanding population  Political environment – Coalition committed to private sector participation in NHS – White Paper firmly support

  11. Slide 11: Ramsay Santé

    RAMSAY SANTÉ For personal use only Ramsay Santé is a platform for expansion in the French market • Second-largest private hospital operator in the greater Well- Paris region established • Nine specialist hospitals benefiting from significant business capital expenditure on new equipment and refurbis

  12. Slide 12: Ramsay Santé

    RAMSAY SANTÉ Nine hospitals, in greater Paris region (Île-de-France) For personal use only 12

  13. Slide 13: Operating Environment – France

    OPERATING ENVIRONMENT FRANCE For personal use only  Positive demographics – Ageing population • Proportion of population aged 65+ to grow from 16.5% to 24.1% by 2050* – Expanding population  Health administration reforms support our investment strategy – Devolvement of decision making  Economy ho

  14. Slide 14: Our Growth Strategy

    OUR GROWTH STRATEGY For personal use only A growing global hospital operator Acquiring businesses in existing Investing in and new capacity markets expansion of existing Capturing facilities to organic growth grow market driven by share demographic evolution 14

  15. Slide 15: Global Industry Fundamentals Driving Growth

    GLOBAL INDUSTRY FUNDAMENTALS DRIVING GROWTH For personal use only Ageing population Expanding population INCREASING DEMAND FOR HEALTH CARE Increase in chronic diseases PROVISION Technological advances 15

  16. Slide 16: Growth Strategy: Delivering Strong Shareholder Returns

    GROWTH STRATEGY DELIVERING STRONG SHAREHOLDER RETURNS For personal use only 2500 Ramsay Total Shareholder Return versus ASX100 (share price appreciation plus dividends) Ramsay Total Shareholder Return 1 Jan 2000 to 30 Sept 2010: 2109% 2000 Index (base of 100) 1500 1000 500 ASX 100 Total Shareholder

  17. Slide 17: Revenue Growth Milestones

    REVENUE GROWTH MILESTONES For personal use only A$B - Group Proclif France 4.0 acquired March 2010 - Capio UK acquired 3.5 November 2007 - Affinity Group acquired 3.0 April 2005 2.5 - Benchmark Group acquired July 2004 Estimate 2.0 - Greenslopes major brownfield expansion opened May 2003 1.5 - Holly

  18. Slide 18: EBITDA Growth

    EBITDA GROWTH For personal use only A$M Compound Annual Growth Rate (CAGR) of 23.4% 500 450 400 350 300 250 200 150 100 50 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* Ramsay Listed September 1997 Financial Year ended 30 June * FY 2010 – includes 3 months of Ramsay Santé 18

  19. Slide 19: Core NPAT Growth

    CORE NPAT GROWTH For personal use only A$M 200 Compound Annual Growth Rate 180 (CAGR) of 23.7% 160 140 120 100 80 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* Ramsay listed September 1997 Financial Year ended 30 June * FY 2010 – includes 3 months of Ramsay Santé 19

  20. Slide 20: Core EPS Growth

    CORE EPS GROWTH For personal use only 90.0 Compound Annual Growth Rate 80.0 (CAGR) of 16.1% 70.0 60.0 Cents per Share 50.0 40.0 30.0 20.0 10.0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* Ramsay listed September 1997 Financial Year ended 30 June * FY 2010 – includes 3 months

  21. Slide 21: Dividend Growth

    DIVIDEND GROWTH For personal use only 50.0 45.0 Compound Annual Growth Rate (CAGR) of 15.9% 40.0 35.0 Cents per Share 30.0 25.0 20.0 15.0 10.0 5.0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Ramsay listed September 1997 Financial Year ended 30 June 21

  22. Slide 22: Brownfield Developments Update

    BROWNFIELD DEVELOPMENTS UPDATE For personal use only Key completed projects include: Hospital Status New Farm Clinic Completed 2nd Half FY09 (Brisbane) Hollywood (Perth) Completed 1st Half FY10 Lawrence Hargrave Completed 1st half FY10 (Wollongong) St George (Sydney) Completed 2nd Half FY10 22

  23. Slide 23: Brownfield Developments Update

    BROWNFIELD DEVELOPMENTS UPDATE For personal use only Key completed projects include: Hospital Status Cairns Clinic Completed September 2010 North Shore (Sydney) Completed October 2010 Westmead Due for completion November 2010 23

  24. Slide 24: Brownfield Developments Update

    BROWNFIELD DEVELOPMENTS UPDATE For personal use only Key projects to be completed in FY11 include: Hospital Status Pindara Due for completion November (Gold Coast) 2010 North West (Brisbane) Due for completion December 2010 Kareena (Sydney) Due for completion January 2011 24

  25. Slide 25: Brownfield Developments Update

    BROWNFIELD DEVELOPMENTS UPDATE For personal use only Other key projects to be completed: Hospital Status Joondalup (Perth) Stage 1 due to complete February 2011. Project on track for completion in mid 2013 25

  26. Slide 26: Capital Management

    CAPITAL MANAGEMENT For personal use only  Debt Profile – Committed senior bank debt facilities of $1.9 billion in place until November 2012 – Headroom of $500 million to $600 million after acquisition of French hospital group Ramsay Santé and after allowing for funding of current brownfield commitm

  27. Slide 27: Capital Management

    CAPITAL MANAGEMENT For personal use only Affinity 6.0 Acquisition (Australia) Leverage = Net Debt / EBITDA 5.1 5.0 Capio UK Acquisition Group Proclif 4.0 $260M Capital Acquisition 3.7 Raising Oct ‘09 (France) 3.3 3.0 2.6 2.7 2.7 2.4 2.3 2.0 FY05 FY06 FY07 FY08 FY09 Dec-09 Mar-10 Jun-10  Ramsay uses

  28. Slide 28: Outlook

    OUTLOOK For personal use only  Clear and consistent strategy to pursue our vision to become a major global hospital operator  Ageing and growing population to fuel demand for health care over the medium and long term  Ramsay is well positioned to capture increased demand via capacity expansion, a

  29. Slide 29: Questions

    For personal use only QUESTIONS

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