Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (November 2011)
24 slides from Ramsay Health Care's shareholder meeting presentation, Nov 15, 2011
Slide 1: Managing Director's Presentation, 15 November 2011
For personal use only Christopher Rex – Managing Director 15 November 2011
Slide 2: Agenda
Agenda For personal use only Overview What is important to us? FY 2011 Highlights - Group - Australia - United Kingdom - France Our Growth Strategy Brownfield Developments Capital Management and Refinancing Outlook 2
Slide 3: Ramsay Health Care – Overview
RAMSAY HEALTH CARE – OVERVIEW For personal use only Australia’s largest private hospital operator and growing global company Market Capitalisation approximately $4 billion Enterprise value approximately $5 billion 117 hospitals and facilities across four countries; in the order of 10,000 bed
Slide 4: What is important to us?
WHAT IS IMPORTANT TO US? For personal use only Our culture: “The Ramsay Way” Our people: staff, doctors & patients Quality & Safety Strong corporate governance Investment in training the future health workforce Investment in communities where we are located Environmental & sustainable
Slide 5: Revenue Growth
REVENUE GROWTH For personal use only A$B 4.0 Compound Annual Growth Rate 3.5 (CAGR) of 24.6% 3.0 2.5 2.0 1.5 1.0 0.5 0.0 RHC Listed 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 on ASX Financial Year ended 30 June 23 Sep’97 5
Slide 6: Strong Shareholder Returns
Strong Shareholder Returns For personal use only Ramsay Total Shareholder Return versus S&P/ASX 100 Accumulation Index (share price appreciation plus reinvestment of dividends) Compound Annual Growth Rate 4-Nov-11 1,472% (CAGR) Ramsay Health Care 19.6% S&P/ASX 100 7.5% 4-Nov-11 278% RHC Listed on AS
Slide 7: Full-Year Highlights
FULL-YEAR HIGHLIGHTS For personal use only Core NPAT(1) up 23.6% to $220.6 million Core EPS(2) up 19.6% to 101.1 cents Group revenue up 9.4% to $3.7 billion Australia and Indonesia revenue up 8.7% to $2.9 billion Europe (3) revenue up 12.4% to $767.1 million Group EBIT up 18.5% to $395.5
Slide 8: Group FY 2011 Highlights
GROUP FY 2011 HIGHLIGHTS Group EBITDA up ↑12.3% Group NPAT up ↑23.6% For personal use only 526.3 220.6 468.8 411.6 178.5 342.1 146.4 123.1 $ Millions $ Millions FY’09 FY’10 FY’11 FY’09 FY’10 FY’11 FY’08 FY’08 Group Core EPS up ↑19.6% Total Dividend up ↑19.5% 101.1 52.0 84.5 43.5 74.1 38.0 32.5 60.7
Slide 9: Group Operational Highlights
GROUP OPERATIONAL HIGHLIGHTS For personal use only Australian business continues to grow strongly Operating leverage driving margin growth across the Group Completed brownfield developments adding to EBIT and EPS Cash conversion rate above 100% Successful bidder for private hospital on Sun
Slide 10: Australia: Operating/Financial Highlights – FY 2011
AUSTRALIA For personal use only Operating/Financial Highlights – FY 2011 Hospitals continued to perform strongly at an operational level Revenue growth of 8.5% Hospital EBIT growth of 15.5% Hospital EBITDA margin of 19.3%, up from 18.3% in the previous year Growing demand for healthcare prov
Slide 11: Australia: Operating Environment
AUSTRALIA Operating Environment For personal use only Operating environment continues to be positive Private hospital sector is a major and integral part of the Australian health care system Treats more than 40% of all patients who go to hospital each year Provides 99.5% of procedures and tr
Slide 12: United Kingdom: Operating/Financial Highlights – FY 2011
UNITED KINGDOM For personal use only Operating/Financial Highlights – FY 2011 UK operating margins before rent (EBITDAR) holding up well, above 25%, post normalised ISTC pricing regime Extraction of material cost efficiencies tapering off Underlying business performing well in challenging envi
Slide 13: United Kingdom: Operating Environment
UNITED KINGDOM For personal use only Operating Environment Strong growth in treating publically funded patients Economic conditions remain challenging NHS (public health service) largely protected from public spending cuts Major reorganisation of NHS recognises private sector involvement as
Slide 14: France: Operating/Financial Highlights – FY 2011
FRANCE For personal use only Operating/Financial Highlights – FY 2011 Business successfully integrated, growth strategy commenced Marginally EPS accretive in first full year under Ramsay control, slightly ahead of schedule Operating Environment Operating environment stable Current blended pr
Slide 15: Successful & Sustainable Growth Strategy
SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY Key elements of growth For personal use only Organic – Underpinned by demographics, quality portfolio of hospitals, ongoing business improvement Brownfield investment – Unmet demand driving Ramsay’s ongoing investment in capacity expansion Public/Privat
Slide 16: Core NPAT Growth
CORE NPAT GROWTH For personal use only A$M 250.0 Compound Annual Growth Rate (CAGR) of 23.7% 200.0 150.0 100.0 50.0 0.0 Financial Year ended 30 June 16
Slide 17: Brownfield Developments
BROWNFIELD DEVELOPMENTS For personal use only Approximately $830M (gross) approved for Australian brownfield projects since 2007 of which $480m (gross) has been spent on completed projects Key projects completed in FY11 include: Pindara (Gold Coast) North West (Brisbane) Westmead Private (
Slide 18: Brownfield Developments Update
BROWNFIELD DEVELOPMENTS UPDATE For personal use only Key projects completed in FY 2011 include: Hospital Status Cairns Clinic Completed September 2010 North Shore Completed October 2010 (Sydney) Westmead Completed November 2010 (Sydney) Lake Macquarie Completed April 2011 (NSW Central Coast) 18
Slide 19: Brownfield Developments Update
BROWNFIELD DEVELOPMENTS UPDATE For personal use only Key projects completed in FY 2011 include: Hospital Status Pindara Completed December 2010 (Gold Coast) North West Completed December 2010 (Brisbane) Kareena Completed January 2011 (Sydney) 19
Slide 20: Brownfield Developments Update
BROWNFIELD DEVELOPMENTS UPDATE For personal use only Other key projects to be completed: Hospital Status Joondalup Stage 1 completed (Perth) February 2011. Project on track for completion in mid 2013 In addition, a number of smaller projects, including Beleura and Peninsula (Mornington Peninsula), M
Slide 21: Capital Management
CAPITAL MANAGEMENT For personal use only Affinity Acquisition 6 $1.4B 5 5.1 Capio UK Acquisition £193M Ramsay Santé 4 3.7 Acquisition 3.3 €87M 3 2.7 2.7 2.4 2 1.9 1 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Leverage = Net Debt / EBITDA 21
Slide 22: Refinancing
REFINANCING Whilst we have committed senior debt facilities of A$1.9 billion For personal use only maturing in November 2012, a new A$2* Billion underwritten debt facility has been executed to refinance the existing facility. The new facility has: Competitive pricing and improved terms 3 yea
Slide 23: Outlook
OUTLOOK For personal use only All the factors that have lead to our success and have driven our strategy are still present and will continue Australian operations are expected to continue to perform strongly, underpinned by our proven growth strategy Rising demand for health care driving subst
Slide 24: Questions
For personal use only QUESTIONS
Ramsay Health Care — Shareholder Meeting (November 2011) on 6ix