Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Macquarie Connections Australia Conference 2010
21 slides from Ramsay Health Care's conference presentation, May 6, 2010
Slide 1: Macquarie Connections Australia Conference
For personal use only Macquarie Connections Australia Conference Sydney 6 May, 2010 Christopher Rex, Managing Director Ramsay Health Care
Slide 2: Agenda
For personal use only AGENDA • About Ramsay Health Care • Remarkable growth story • Formula for success • Rationale for offshore expansion • French acquisition – overview of Proclif acquisition and French hospital sector • Operating environment – UK and Australia • Dec 09 Half Year results recap • C
Slide 3: About Ramsay Health Care
For personal use only ABOUT RAMSAY HEALTH CARE • Established in 1964 • Listed on the Australian Stock Exchange in September 1997 • Since become Australia’s largest private hospital operator, approximately 30% market share • In top 100 Australian-listed companies by market capitalisation • Expanded o
Slide 4: Remarkable Growth Story
For personal use only REMARKABLE GROWTH STORY AT LISTING TODAY (Sept 1997) 117 hospitals and facilities 11 hospitals • 65 in Australia • 3 in Indonesia • 40 in the UK • 9 in France More than 9,300 beds 1,351 beds • 6,580 in Australia • 615 in Indonesia • 1,155 in the UK • 978 in France Annual revenu
Slide 5: Revenue Growth Milestones
REVENUE GROWTH MILESTONES For personal use only A$B 4.0 - Proclif acquired end March 2010 3.5 - Capio UK Acq. Nov’07 Estimate/Proforma including Proclif 3.0 - Affinity Group Acq. Apr’05 - Benchmark Group Acq. Jul’04 2.5 - Greenslopes Major Expansion 2.0 Opened May’03 Estimate - Hollywood Major Expan
Slide 6: Growth Strategy Delivering Strong Returns
For personal use only GROWTH STRATEGY DELIVERING STRONG RETURNS Ramsay Total Shareholder Return 276% 97% 77% Source: Macquarie 5
Slide 7: Formula for Success
FORMULA FOR SUCCESS • Management and culture For personal use only – Long term, stable management team, special culture (“The Ramsay Way”), industry leadership • Strong growth strategy – Organic – Brownfield investment ($675M gross approved for expansion in Australia, £33M in the UK) – Track record
Slide 8: Rationale for Offshore Expansion
For personal use only RATIONALE FOR OFFSHORE EXPANSION • Competition constraints means it is difficult for Ramsay to make significant hospital acquisitions in Australia • Ramsay can export its proven management model and blend it with local expertise and has demonstrated this in the UK – Marketing k
Slide 9: A Global Vision
For personal use only A GLOBAL VISION Becoming a major global hospital operator 8
Slide 10: France - Proclif Acquisition Details
For personal use only FRANCE - PROCLIF ACQUISITION DETAILS • Acquisition of 57% interest in Proclif, the second largest private hospital group in the Paris region, for €87m Remaining 43% interest held by Predica (wholly owned subsidiary of Crédit Agricole) • Enterprise value of €172m • Revenue ~ €13
Slide 11: The French Hospital Sector
THE FRENCH HOSPITAL SECTOR The French acute care market is an attractive sector with strong For personal use only fundamentals • Free choice and universal cover whether care is provided in private or public Stable and hospitals popular system • Integrated public and private systems • Underpinned by
Slide 12: Operating Environment - UK
For personal use only OPERATING ENVIRONMENT - UK • UK economy showing some signs of recovery • Potential for PMI and self-pay volumes to improve • Business as usual post UK election – Support for competitive market for NHS services to continue – Opportunities for increased private sector role will c
Slide 13: Operating Environment – Australia
For personal use only OPERATING ENVIRONMENT – AUSTRALIA • Robust operating environment • the 2010 intergenerational report confirms strong growth in future demand for health care – Population growth – Ageing population – Rising demand for higher quality care – Higher incidence of chronic diseases –
Slide 14: Operating Environment – Australia
OPERATING ENVIRONMENT – AUSTRALIA For personal use only • Private hospitals are an integral part of Australia’s health system – Private hospitals provide 99% of procedures and treatments that are provided in public hospitals – 40% of all patients are treated in private hospitals; forecast to grow to
Slide 15: Operating Environment – Australia
OPERATING ENVIRONMENT – AUSTRALIA For personal use only • Proposed health care reforms expected to have benign impact on private health system • Reforms will not change fundamentals driving future demand for health care or value proposition of the private health system • Ramsay very well placed to c
Slide 16: Recap of Dec Half-Year Financials
RECAP OF DEC 09 HALF-YEAR FINANCIALS Strong rise in Group core net profit for six For personal use only months ended 31 December 2009, reflects underlying strength of the business • Core net profit after tax* up 32.7% to $91.1 million • Core EPS* up 32% to 44.6 cents • Australia and Indonesia revenu
Slide 17: Group Core EPS and Dividend Growth
GROUP CORE EPS AND DIVIDEND GROWTH June Half December Half For personal use only 32% 44.6¢ 40.4¢ 33.8¢ 30.3¢ 30.4¢ 26.7¢ 21.5¢ 12.1% 17.5¢ 18.5¢ 16¢ 16.5¢ 15¢ Jun'07 Jun'08 Jun'09 Dec'07 Dec'08 Dec'09 Core EPS (cents/share) Dividend (cents/share) • Core EPS up 32% to 44.6 cents from 33.8 cents in th
Slide 18: Capital Management
CAPITAL MANAGEMENT Debt profile Affinity For personal use only Acquisition • Committed senior bank debt facilities of ~ $1.9 billion in place until November 2012 Capio Acquisition • Successfully completed $260M equity raising (Sept/Oct 2009) Proclif Acquisition • Headroom of $500M-$600M after allowi
Slide 19: Capital Management
For personal use only CAPITAL MANAGEMENT CARES • May be converted to ordinary shares or exchanged at Ramsay's election in October 2010 • If not converted or exchanged, dividend rate would step up by 2.0% • Ramsay will continue to assess the most appropriate alternative in the lead up to the Exchange
Slide 20: Outlook
For personal use only OUTLOOK • Continuing strategy to become a major global hospital operator • Business in excellent shape • Demographic pressures to drive growth in health care demand over medium and longer term • Seeking expansion and acquisition opportunities in the UK, France and other markets
Slide 21: Questions
For personal use only QUESTIONS
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