Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (November 2008)
24 slides from Ramsay Health Care's shareholder meeting presentation, Nov 25, 2008
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 25 November, 2008
Slide 2: Agenda
AGENDA For personal use only • Ramsay profile • Well positioned in a robust industry • Growth milestones • 2008 financial year highlights • Brownfields progress Australia and the UK • Ramsay UK – 1 year on • Outlook 2
Slide 3: Ramsay Profile
RAMSAY PROFILE For personal use only • Australia’s largest private hospital operator and one of the largest private hospital operators in the world • Present on three continents: Australia, Asia and Europe • More than 100 hospitals and facilities – 64 in Australia, 3 in Indonesia, 36 in the UK • Mor
Slide 4: Well Positioned in a Robust Industry
WELL POSITIONED IN A ROBUST INDUSTRY For personal use only • Ramsay is a growth company operating in a robust industry and is well positioned in the current climate of economic uncertainty – Operates in an industry with strong fundamentals – Diversified revenue by source and region – Business genera
Slide 5: Strong Industry Fundamentals – Global
STRONG INDUSTRY FUNDAMENTALS – GLOBAL For personal use only • Growth in demand for health care to continue over the long term supported by: ¾ Ageing population ¾ “Baby boomer” bulge ¾ Wealth demographic ¾ Increased expectations INCREASING DEMAND FOR ¾ Increased capabilities HEALTH CARE PROVISION − S
Slide 6: Strong Industry Fundamentals – Australia
STRONG INDUSTRY FUNDAMENTALS – AUSTRALIA For personal use only • Balanced health care system ¾ Cultural ¾ Political ¾ Financial • Industry features ¾ Respected private providers ¾ Choice and access UNDERPINS ¾ Low cost attractive insurance product ONGOING STRONG ¾ Comprehensive cover PARTICIPATION I
Slide 7: Medicare Levy Surcharge
MEDICARE LEVY SURCHARGE For personal use only • Compromise reached on Medicare Levy Surcharge (MLS) • Income threshold raised to $70,000 for singles and $140,000 for couples • Fundamentals of Private Health Insurance (PHI) remain attractive • Little or no effect on patient volumes anticipated • Rela
Slide 8: Private Health Insurance Incentives Maintained
PRIVATE HEALTH INSURANCE INCENTIVES MAINTAINED For personal use only • Government is committed to maintaining key health insurance incentives “The Government will maintain the current system of incentives – the Rebate, Lifetime Health Cover and the Medicare Levy Surcharge…” (Minister for Health and
Slide 9: Bi-partisan Support for Balanced Health Care System
BI-PARTISAN SUPPORT FOR BALANCED HEALTH CARE SYSTEM For personal use only • Australia’s balanced health care system is working and has bi-partisan support “I believe the days of viewing the health system as a dichotomy between public and private provision are behind us”. “The Rudd Labor Government i
Slide 10: Diversified Revenue – Payer Profile
DIVERSIFIED REVENUE – PAYER PROFILE For personal use only REVENUE BY REGION REVENUE BY PAYER • Diverse revenue source by payer mitigates risk 10
Slide 11: Strong Cash Flow and Financial Management
STRONG CASH FLOW AND FINANCIAL MANAGEMENT For personal use only • Ramsay is very focused on cash flow and working capital management • Business generates strong and consistent cash flow which underwrites debt servicing • Senior debt facilities were refinanced in November 2007 – Committed debt fundin
Slide 12: Clear and Disciplined Growth Strategy
CLEAR AND DISCIPLINED GROWTH STRATEGY For personal use only • Organic growth – Optimising growth at existing hospitals – Micro management • Investing in existing business – Improving the quality of our facilities – Brownfield expansion programme • Focused on growing and developing the UK business •
Slide 13: Growth Milestones
GROWTH MILESTONES For personal use only Capio UK Acq. Nov’07 Affinity Acq. Apr’05 Benchmark Acq. Jul’04 Greenslopes Major Exp. Opened May’03 Revenue Hollywood Major Exp. Opened Jul’02 Alpha Acq. May’01 North Shore Private Hosp. Opened Jul’98 Greenslopes Acq. Feb’95 RHC Listed Sep’97 Hollywood Acq. J
Slide 14: 2008 Financial Year Highlights
2008 FINANCIAL YEAR HIGHLIGHTS For personal use only • Strong rise in Group core net profit, underpinned by solid organic Australian growth – Australian business achieved strong EBIT growth across all states – Core EPS growth of 11.8%, at higher end of guidance – Australian brownfields progressing w
Slide 15: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only YEAR ENDED 30 JUNE 2008 2007 % Inc $m $m Continuing Operations Australia & UK Group Group Indonesia Operating Revenue 2,289.2 384.5 2,673.7 2,099.1 27.4% EBITDAR* 327.1 87.5 414.6 294.1 40.9% EBITDA 303.4 37.8 341.3 272.1 25.4% EBIT 234.7 19.9 254.7
Slide 16: Group Financial Performance (cont.)
GROUP FINANCIAL PERFORMANCE (cont.) For personal use only YEAR ENDED 30 JUNE 2008 2007 % Inc/(Dec) $m $m Core NPAT – continuing operations 123.1 110.4 11.5% NPAT – divested operations (2.7) 0.3 Specific items and amortisation of intangibles (net of tax) [refer Note] (28.2) (3.6) Reported Net Profit
Slide 17: Financial Performance – Australia and Indonesia
FINANCIAL PERFORMANCE – AUSTRALIA AND INDONESIA For personal use only YEAR ENDED 30 JUNE 2008 2007 % Inc Continuing Operations $m $m Operating Revenue 2,289.2 2,099.0 9.1% EBITDAR 327.1 294.1 11.2% EBITDA 303.4 272.1 11.5% EBIT 234.7 211.5 11.0% EBITDAR MARGIN (%) 14.3% 14.0% EBITDA MARGIN (%) 13.3%
Slide 18: Brownfields Progress – Australia
BROWNFIELDS PROGRESS – AUSTRALIA For personal use only • Ramsay has spent approx. 35% of the $550M approved for expansion projects in Australia • Net investment to be $490M after the sale of medical suites over period FY09-FY11 • Key projects include: HOSPITAL PROJECT Hollywood (Perth) 4 theatres, a
Slide 19: Brownfields Progress – Australia
BROWNFIELDS PROGRESS – AUSTRALIA For personal use only • Two new projects have been approved in addition to the $550M ($490M net) programme • The new projects total approx. $100M and are due to start in 2nd half FY09 • Net investment to be approx. $80M after sale of medical suites in FY12 HOSPITAL P
Slide 20: Brownfields Progress – UK
BROWNFIELDS PROGRESS – UK For personal use only • Increasing NHS demand driving significant investment in capacity expansion at hospitals – Capex of £28M approved to be spent over FY09 and FY10 – Will provide 17% increase in hospital operating capacity through theatre expansion 20
Slide 21: Ramsay UK – Year On
RAMSAY UK – 1 YEAR ON For personal use only • Ramsay UK continues to perform strongly – Strong rise in NHS activity both at private hospitals and Independent Sector Treatment Centres (ISTCs) for July-September over prior year – Business performing ahead of expectations • Ramsay UK is the leading pla
Slide 22: Growth of CAB Ramsay UK
GROWTH OF CAB RAMSAY UK For personal use only 22
Slide 23: Outlook
OUTLOOK For personal use only • Ramsay well positioned in current climate of economic uncertainty • Strong industry fundamentals to underpin future growth • First quarter of FY09 in line with expectations • Ramsay UK on track to be EPS accretive in FY09, as previously forecast • Ramsay on track to a
Slide 24: Questions
For personal use only QUESTIONS
Ramsay Health Care — Shareholder Meeting (November 2008) on 6ix