Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Macquarie Securities Emerging Leaders Conference 2006
23 slides from Ramsay Health Care's conference presentation, May 5, 2006
Slide 1: Macquarie Securities Emerging Leaders Conference
el la RAMSAY HEALTH CARE VAM Macquarie Securities Emerging Leaders Conference May 2006 Managing Director Pat Grier
Slide 2: Agenda
as RAMSAY HEALTH CARE Agenda 1. Overview of Ramsay Health Care 2. Our management and growth strategy . Private hospitals - a growth industry 3 4. Affinity acquisition - delivering results 5. Outlook - strong growth prospects
Slide 3: Overview of Ramsay Health Care
as RAMSAY HEALTH CARE Overview of Ramsay Health Care
Slide 4: Ramsay Health Care - Market Position
as RAMSAY HEALTH CARE Ramsay Health Care - Market Position » Market capitalisation A$1.8 billion, in top 115 ASX listed companies «» Largest listed private hospital operator in Australia > 30% of the Australian private hospital market >» Well positioned portfolio of hospital facilities strategically
Slide 5: Diversified Revenue Stream
as . ps ramsay Diversified Revenue Stream HEALTH CARE Pro Forma Revenue by Division Pro Forma Revenue by State Rehab SA Psychiatric yn 2% soon 4% | ‘0 Veteran 14% A a, Med/Surg Other 60%
Slide 6: Ramsay Investment Highlights
as RAMSAY HRALT RE. Ramsay Investment Highlights » Dynamic industry growth prospects bolstered by: >» Ageing population >» Increase in private health insurance membership » Private hospital industry offers strong growth potential for quality operators » Australia’s largest private hospital operator
Slide 7: Strategy Delivers Profitable Growth
Strategy Delivers Profitable Growth
Slide 8: Ramsay Growth Strategy
nAneay Ramsay Growth Strategy HEALTH CARE » Focus on management of core hospital business » Underwrites strong organic growth » Growth through investing in brownfields development >» Higher return on investment >» Expands capacity >» Enhances portfolio » Grow through acquisitions in the hospital sec
Slide 9: Growth Timeline
aa . . RAMSAY Growth Timeline HEALTH CARE AS Affinity Acquired 2, Apr'05 2,200 __ Hollywood Veteran. 5 : 000 . : * Perth acquired & Benchmark Group h he Acquired Jul'04 _ 1,800 privatised Jan’94 —__ mies : __ Greenslopes Major _ 1,600 Greenslopes Veteran Expansion Opened May 03 Brisbane acquired & =
Slide 10: Core EPS Growth
ae RAMSAY Core EPS Growth HEALTH CARE Half-year apemmnmseeng 207. 107 Fy‘oo Fy'o1 Fy‘o2 Fy’03 Fy'04 Fy’05 ! 1st Half 1st Half : Fy'05 Fy'06 eseceneen « Average annual compound growth rate over 5 years of 37.6% (base year FY 2000) * Core EPS up 17% for the half-year ended 31 December 2005
Slide 11: Private Hospitals - A Growth Industry
RAMSAY HEALTA CARE Private Hospitals — A Growth Industry
Slide 12: Favourable Industry Dynamics
Favourable Industry Dynamics Australia’s balanced health care system supports private hospital industry growth Government has encouraged the private hospital industry to work alongside the public system > Growth underpinned by: Vv > Favourable demographic trends (e.g. ageing population) Bipartisan s
Slide 13: Recent Industry Developments
as ramsay Recent Industry Developments, » Extension of private health insurance coverage for some out-of-hospital services positive development: >» makes private health insurance product more relevant >» new coverage outside hospitals extends existing services provided in hospitals » Expect neutral
Slide 14: Affinity Acquisition, Delivering Results
RAMSAY HEALTA CARE Affinity Acquisition, Delivering Results
Slide 15: Affinity Acquisition Benefits
aaneay Affinity Acquisition Benefits HEALTH CARE » Acquired 51 hospitals, Ramsay divested 19 to address competition issues, maximise portfolio » Unique opportunity to bring together two companies with the best portfolios of quality hospitals » Staff, doctors, infrastructure » Enhanced referral base
Slide 16: Integration Plan Proceeding Well
RaANsAy Integration Plan Proceeding Well AUTH CARE » On track to achieve synergy benefits for FY06 » Timing of head office restructuring ahead of schedule >» Net corporate staff numbers reduced by 40% (Ramsay +14, Affinity -89) » Devolving central functions to hospitals - decentralised Ramsay manage
Slide 17: Acquisition Challenges
as . ays RAMSAY Acquisition Challenges HEALTH CARE » Focus on core hospital management, deliver strong organic growth for Ramsay and Affinity hospitals » Finalise ACCC negotiations and complete divestments » Focus on strong cash flow generation » De-leverage and debt reduction » Implementation of Af
Slide 18: Progress Meeting Challenges
nabeay Progress Meeting Challenges HEALTA CARE » Solid profit growth achieved in 1st half >» Ramsay hospitals only EBIT up 11% » Affinity group hospitals EBIT up 52% > Affinity hospitals only EBIT up 9% » ACCC negotiations and divestments successfully completed » Integration plan proceeding on sched
Slide 19: De-leverage & Gearing
as , RAMSAY De-leverage & Gearing HEALTH CARE $m 1,500 Affinity Divestment Acquisition ™ Divestment 3 Adelaide 1,200 4 14 Hospitals Hospitals and Residential Aged Care 900 + | 600 + Benchmark 7 Acquisition \ Divestment 5 Hospitals 300 7 - —@ Net Debt (D) —@ Shareholder Equity (E) oO T T T T T Jun‘04
Slide 20: Strengthening Hospital Portfolio
aaneay Strengthening Hospital Portfolio HEAL CARE a» Acquisition of Affinity provided opportunity to optimise portfolio » Strategic review of portfolio announced post Affinity acquisition » 3 South Australian hospitals sold in March «» As foreshadowed, sale of Aged Care business announced a Strategi
Slide 21: Strong Growth Prospects
Strong Growth Prospects
Slide 22: Growth Prospects Next 3-5 Years
aa neay Growth Prospects Next 3-5 Years HEALTH CARE » ist phase - Organic growth from Affinity and Ramsay hospitals » 24 phase — Uplift from Affinity acquisition » Achieve synergy savings >» Operational improvements » Indonesia =» 34 phase — Invest in capacity expansion, enhancements » Both Ramsay a
Slide 23: HEALTH CARE
pd WA HEALTH CARE
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