Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (February 2016)
25 slides from Ramsay Health Care's shareholder meeting presentation, Feb 11, 2016
Slide 1: Annual General Meeting
Ramsay Health Care Limited Annual General Meeting 12 November 2015 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA 1. Operational and Financial Highlights 2. Group Operations 3. Growth Strategy Update 4. Outlook 2
Slide 3: Ramsay Health Care
RAMSAY HEALTH CARE • Over 50 year’s experience in operating hospitals • 212 hospitals across 5 countries • 25,000 beds and places • Employs circa 60,000 people • Admits circa 3 million patients per annum • Ranked in the top 5 private hospital operators in the world • Market Capitalisation approx. $1
Slide 4: Global Industry Fundamentals
GLOBAL INDUSTRY FUNDAMENTALS Demand for healthcare globally continues to increase with an ageing population, longer life expectancy; increased chronic disease burden, population growth and improvement in treatments & diagnostic methods. Ageing population Chronic Chronic disease Ageing • More than
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS Financial year ended 30 June 2015 • Strong growth across global portfolio • Became the leading hospital operator in France after finalising the acquisition of Générale de Santé (completed Oct 2014). Merger with Ramsay Santé completed 1 July 2015 • In the process of acquiring a
Slide 6: Delivering Quality Care
DELIVERING QUALITY CARE • Ramsay has announced strategic alliance with the International Consortium for Health Outcomes Measurement (ICHOM) • First multi-national hospital group to partner with ICHOM • Focusing on outcomes that matter most to patients and deliver value • Continuous review of patient
Slide 7: Ensuring a Safe Workplace
ENSURING A SAFE WORKPLACE • Employee safety remains our major priority globally • For example in FY15, Ramsay Australia achieved a 21% reduction in total number of LTIs compared to previous year TOTAL LOST TIME INJURIES (LTIs) 160 Down 21% 140 120 100 Total LTIs 80 60 40 20 0 FY 12 FY 13 FY 14 FY 15
Slide 8: Employee Share Plan
EMPLOYEE SHARE PLAN • >14,000 employees now participating in the Ramsay Health Care Free Share Offer • The share plan recognises the key role employees play in our company 8
Slide 9: FY2015 Financial Highlights
FY2015 FINANCIAL HIGHLIGHTS Group Revenue − $7.4 billion 49.8% Group EBIT − $803.9 million 37.4% Core NPAT − $412.1 million 19.0% Core EPS − 196.6 ¢ per share 20.0% Final Dividend (fully − 60.5 ¢ per share 18.6% franked) Full Year Dividend − 101.0 ¢ per share 18.8% (fully franked) 9
Slide 10: Compound Annual Growth Rate
COMPOUND ANNUAL GROWTH RATE (CAGR) - FY2012 TO FY2015 Group EBITDA CAGR 23.8% Group Core NPAT CAGR 17.7% $1,106.3 $412.1 $346.2 $751.5 $290.9 $583.5 $627.7 $252.6 $ million $ million FY'12 FY'13 FY'14 FY'15 FY'12 FY'13 FY'14 FY'15 Group Core EPS CAGR 19.2% Total Dividend CAGR 19.0% 101.0 196.6 85.0
Slide 11: Strong Shareholder Returns
STRONG SHAREHOLDER RETURNS Ramsay Total Shareholder Return(1) versus S&P/ASX 100 Accumulation Index Ramsay TSR Compound Annual Growth Rate (CAGR) 25.8% 06-Nov-15 6,382.5% S&P/ASX 100 Accumulation Index (CAGR) 8.2% Index (Base of 100) 06-Nov-15 416.9% 23-Sep-97 06-Nov-15 RHC listed at Closing Sha
Slide 12: Group Operations
Group Operations 12
Slide 13: Our Operating Environment
OUR OPERATING ENVIRONMENT FRANCE UK ASIA AUSTRALIA • Tariff challenges • Continuing strong NHS • Increasing consumer • Continuing rising • Further consolidation growth wealth, and demand for health care likely to take place • Favourable political government • Stable political • Challenging political
Slide 14: Segment Risk Profile
SEGMENT RISK PROFILE Revenue EBITDAR (operating profit before rent) 52% 45% 42% 39% 1% 9% 12% Australia France UK Asia 14
Slide 15: Growth Strategy Update
Nth Hi “ey Growth Strategy Update
Slide 16: Successful & Sustainable Growth Strategy
SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY Acquisitions Exploring further Public/Private acquisitions in Collaborations existing and other Brownfield Capacity Expansion Potential for more markets Organic Growth partnerships to Ramsay has proven Unmet demand Underpinned by develop/manage/ it
Slide 17: Brownfield Developments
BROWNFIELD DEVELOPMENTS Demographics continue to drive the strong pipeline of capacity expansion: • 33 projects delivering a total of 1041 beds (net 754) and 41 theatres, will be completed during the FY15 and FY16 period • Focused on patient accommodation; facility and medical equipment improvements
Slide 18: Brownfield Developments (Continued)
BROWNFIELD DEVELOPMENTS (Continued) • In FY 2015, Ramsay completed $190m worth of expansions at existing facilities including: • Warringal Private (64 beds; 5 theatres; day Warringal Private surgery unit) – $58.2m • Pindara Private (113 beds; 3 theatres) – $53.3m • Kareena Private (36 beds; 1 theatr
Slide 19: Brownfield Developments (Continued)
BROWNFIELD DEVELOPMENTS (Continued) • Other projects completed during FY 2015: • John Flynn (Day Surgery) – $2.8m • Peninsula Private ( Theatre, Beds) – $4.8m • Lake Macquarie Private (Theatre, CCU) – $7.6m • Kingsway Day Surgery (new hospital in Miranda) – $6.8m • Hillcrest Private (expanded mental
Slide 20: Brownfield Developments (Continued)
BROWNFIELD DEVELOPMENTS (Continued) Main projects due to complete in FY16: • Wollongong – 151 beds; 8 theatres • Hollywood – 90 beds; 6 theatres • Peninsula – 71 beds; 1 theatre • Cairns – 56 beds • New Farm Clinic – 56 beds Cairns Private • North Shore – 45 beds; 1 theatre • St George – 35 beds; 3
Slide 21: Acquisitions - France
ACQUISITIONS - FRANCE • Acquisition of Générale de Santé in October 2014 • Merger of Ramsay Santé (Ramsay’s existing business) and the newly acquired Générale de Santé (GdS) finalised on 1 July 2015, integration now underway • The merger brings Ramsay’s total portfolio to 115 facilities (101 hospita
Slide 22: China
CHINA Guangzhou • Framework Joint Venture Agreement recently signed between Ramsay Sime Darby and Jinan University Affiliated Hospital. • Jinan University Hospital is an exclusive Chinese state-owned medical institution • Intention to establish a number of high quality international hospitals in Chi
Slide 23: Outlook
Outlook 23
Slide 24: Outlook
OUTLOOK • We will continue our track record of success in international expansion through our exportable operational model. Ramsay is now a market leader across the globe • Utilising our global experience in acquiring and integrating hospitals, we will continue to canvas opportunities in new and exi
Slide 25: Questions
Questions 25
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