Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (November 2017)
26 slides from Ramsay Health Care's shareholder meeting presentation, Nov 16, 2017
Slide 1: Annual General Meeting
Ramsay Health Care Limited Annual General Meeting 16 November 2017 Craig McNally, Managing Director ramsayhealth.com
Slide 2: Agenda
AGENDA 1. FY2017 Overview 2. Operating Environments 3. Growth Strategy Update 4. Outlook 2 Results Briefing - Half Year ended 31 December 2016
Slide 3: FY2017 Overview
FY2017 Overview
Slide 4: The Ramsay Health Care Network
THE RAMSAY HEALTH CARE NETWORK 221 14 Healthcare & Hospitals treatment facilities 25,000 1,150 Hospital beds Operating theatres 39 4,000 Emergency Mental health beds departments 200+ 60,000 Pharmacies Employees 4
Slide 5: Our Operations in FY2017
OUR OPERATIONS IN FY2017 Admitted Over Almost 60,000 2.2 million almost 1.7 million babies scripts 3.5 million procedures delivered dispensed by patients performed Ramsay Pharmacy* * Australia only 5
Slide 6: Advancing Patient Outcomes
ADVANCING PATIENT OUTCOMES Achievements in FY2017: Commenced Commenced New Patient Commenced Ramsay Hospital international rollout of Portal Launched cancer clinical Research studies of Vanderbilt in France trials network Foundation patient reported program digitalising across 12 launched in FY’17 o
Slide 7: Advancing Medical Science & Technology
ADVANCING MEDICAL SCIENCE & TECHNOLOGY CLINICAL RESEARCH • Landmark ORIGINS study of 10,000 births launched at Joondalup Health Campus • Over 750 clinical research articles published by doctors in our French hospitals* • World-first research at Greenslopes Private into long term physical impact of P
Slide 8: FY2017 Financial Highlights
FY2017 FINANCIAL HIGHLIGHTS REVENUE $8.7 billion 0.2% Up 0.2% on previous year (up 4.1% in constant currency) EBIT $943.4 million 5.2% Group earnings before interest & tax up 5.2% on previous year CORE NPAT $542.7 million 12.7% Core net profit after tax up 12.7% on previous year CORE EPS 261.4 cents
Slide 9: Operating and Earnings Growth
Operating and Earnings Growth Operating Revenue CAGR 21.0% EBIT CAGR 17.3% 8,684.1 8,705.4 897.1 943.4 7,355.5 803.9 $ Million 4,909.3 584.9 $ Million FY'14 FY'15 FY'16 FY'17 FY'14 FY'15 FY'16 FY'17 Core EPS CAGR 16.8% Dividend CAGR 16.5% 261.4 231.4 196.6 134.5 119.0 Cents per Share Cents per Share
Slide 10: Our Operating Environments
Our Operating Environments 10
Slide 11: Our Operating Environments: Australia
OUR OPERATING ENVIRONMENTS Australia • Volume growth continues to be driven by an ageing population • Majority of our funding arrangements were negotiated in FY’17 with satisfactory outcomes and multiyear terms • Affordability of health care • Recently announced reforms to private health insurance w
Slide 12: Private Health Insurance Reforms
PRIVATE HEALTH INSURANCE REFORMS The Federal Health Minister Greg Hunt recently announced a private health insurance (PHI) reform package signalling the government’s support of the private health system. We expect to see some recovery in PHI participation rates and opportunities from expanded mental
Slide 13: Our Operating Environments: France
OUR OPERATING ENVIRONMENTS France • Remains a challenging environment • Ramsay GdS is developing a positive relationship with the new Macron government • Cluster strategy to strengthen our portfolio in local geographies is progressing with some acquisition opportunities as well as some small divestm
Slide 14: Our Operating Environments: United Kingdom
OUR OPERATING ENVIRONMENTS United Kingdom • Ramsay UK remains the leader in ‘Choose & Book’ NHS referrals in the independent sector • UK is currently a challenging environment due to NHS cost constraints and referral management schemes • Public system is under strain UNITED KINGDOM • Increase in tar
Slide 15: Our Operating Environments: Asia
OUR OPERATING ENVIRONMENTS Asia • Strong operational performance with focus on cost controls • Remains a very competitive environment • New developments targeting universal health provider patients (BPJS) opening at two of our Indonesian facilities ASIA 15
Slide 16: Growth Strategy Update
Growth Strategy Update
Slide 17: Macro Industry Trends
MACRO INDUSTRY TRENDS Growth in healthcare will continue to be underpinned by an ageing population, rising prevalence of chronic diseases and improving medical technologies. Ageing & Proliferation of Innovative growing population chronic disease treatment & technologies • Increasing life expectancy
Slide 18: Delivering on Our Growth Strategy
DELIVERING ON OUR GROWTH STRATEGY Continuing to create shareholder value through our focused strategy ORGANIC GROWTH BROWNFIELD PUBLIC/PRIVATE ACQUISITIONS INTEGRATED Underpinned by CAPACITY EXPANSION COLLABORATIONS Exploring acquisitions CARE demographics, quality Local market knowledge Global focu
Slide 19: Developments
DEVELOPMENTS During FY’17 the following projects were completed or commenced: $535M 500 beds 27 operating 3 private projects theatres emergency centres 19
Slide 20: New Hospitals Opened FY'17
NEW HOSPITALS OPENED FY’17 The Border Cancer Hospital The Southport Private Hospital • Opened September 2016 in Albury Wodonga • Opened April 2017 on Gold Coast • 28 chairs; 30 overnight beds • Dedicated mental health and rehabilitation facility • Located within a state-of-the-art three storey • 22
Slide 21: Major Brownfields Completed
MAJOR BROWNFIELDS COMPLETED Peninsula Private Hospital New Farm Clinic – 39 new beds Pindara Private Hospital – 71 Beds, Theatres, ED and major refurbishment New expanded ED North Shore Private Hospital Waverley Private Hospital The Avenue Private Hospital New accommodation wing at– – 17 Beds and Th
Slide 22: Development Pipeline
DEVELOPMENT PIPELINE New/Replacement Hospitals • Northside Clinic at St Leonards (gross 112; net 24 beds) • UK: Croydon Day Surgery in inner London and Tees Valley Private in Middlesbrough Expansions The New Northside St Leonards Clinic (artist impression) • Albert Road Clinic (48 beds) • Lake Macqu
Slide 23: Integrated Care
INTEGRATED CARE Ramsay Health Care is assessing opportunities to grow our services beyond the hospital walls. We have begun this journey with Ramsay Pharmacy. • Ramsay Pharmacy community franchise network is expanding – circa 55 pharmacies by end CY’17 • Slower than expected expansion due to regulat
Slide 24: Outlook
Outlook 24
Slide 25: Key Focus Areas / Our Competitive Advantages
KEY FOCUS AREAS OUR COMPETITIVE ADVANTAGES Strong Culture Our People Focus on Quality Consumers Strong Portfolio Integration Relationship Quality with Doctors Innovation Scale Scale Experienced Leadership Performance Financial Discipline 25
Slide 26: Outlook
OUTLOOK Attractive demographic fundamentals combined with geographic, casemix and reimbursement diversification will continue to drive growth Strong growth in our Australian business is expected to continue, while we anticipate ongoing challenging environments in Europe in the near term Drivin
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