Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — FY2003 Earnings Presentation
23 slides from Ramsay Health Care's earnings presentation, Aug 28, 2003
Slide 1: Preliminary Final Results for the financial year ended 30 June 2003
ne ms RAMSAY HEALTH CARE Preliminary Final Results for the financial year ended 30 June 2003 Briefing - 28 August 2003
Slide 2: Chairman's Overview
Chairman’s Overview Net profit up 19%, building on record profit growth of previous 2 years Demand for Ramsay hospital beds strong, admissions higher on comparable basis Strong result underlines strength and importance of Ramsay’s relationships with doctors, medical staff and its strong portfolio of
Slide 3: Financial Highlights
RAM SAY LTR CARE. Financial Highlights » NPAT up 19% to $37.1 m » Group Revenue up 20% to $662.2m » Group EBIT up 14% to $66.4m a» EBIT excluding acquisitions up 11% » EBIT margin of 10.4% (excluding new hospital acquisitions) » EPS up 18% to 28.9 cents per share a» Total year dividend up 41% to 15.
Slide 4: Financial Performance
RAMSAY HEALTH CARE Financial Performance Year Ended 30 June 2002 2003 % Inc. EBITDA Profit before tax 43.6 53.5 13% 23% EPS (cents/share) 18%
Slide 5: NPAT Growth
RAMSAY NPAT Growth HEALTH Cd rm 37-1 FY 2000 FY 2001 FY 2002 FY 2003 =» Strong NPAT growth, year on year
Slide 6: NPAT Growth Half-yearly comparison
ss NPAT Growth RAMSAY Half-yearly comparison Dec'01 Dec'02 Jun'02 Jun'03 a Second half exceeded expectations of matching first half, despite: > Seasonal trends >» Higher than expected nursing wage increases in NSW > Higher malpractice insurance costs now stabilised
Slide 7: Occupancy levels
440 380 oon ” a —@ Inpatient t= Total (Inpatient & Day Patients) 260 — 200 T T T T T T Jun'00 Dec'00 Jun'01 Dec'01 Jun'02 Dec'02 Jun'd3 Half-year Ended # Occupancy levels for the second half maintained despite seasonality
Slide 8: EBITDA and Gross Cash Flow
$m | |MMMEBITDA —o=- Gross Cash Flow FY 2000 FY 2001 Fy 2002 Fy 2003 =» Full year EBITDA of $91m has translated into strong gross operating cash flow of $84.5m
Slide 9: EBIT Growth
AY EBIT Growth LE, RAM HEALTH sm _ _ 66.4 FY 2000 FY 2001 FY 2002 FY 2003 = Group EBIT increased by 14% » Excluding recent acquisitions, EBIT up 11%
Slide 10: Breakdown of Group EBIT Growth
naneay Breakdown of Group EBIT Growth HEALTH CARE 3% 5% 6% Organic Growth @ Growth from Expanded Capacity = Growth from Acquisitions
Slide 11: Expansion program delivers benefits
ramsay Expansion program delivers benefits ALYH CARE Hollywood > Hollywood expansion on-stream in 1st half > Hollywood EBIT up 14% in full year, argely due to expansion benefits > Return on investment of 16% already achieved in first year Greenslopes > Largely completed late in FY 2003
Slide 12: EBIT Margin (excluding acquisitions)
RAMSAY PRG. EBIT Margin - (excluding acquisitions) % FY 2000 FY 2001 FY 2002 FY 2003 =» EBIT margin (ex Lake Macquarie and Cairns) 10.4% reflects: » Absorption of higher than expected nursing wage increases in NSW » Prothesis costs continue to dilute w EBIT margin including acquisitions 10%
Slide 13: Earnings per share
Earnings per share Cents per Share =| 28.9}- 307 ‘ » u \ iy o Fy 2000 FY 2001 FY 2002 FY 2003 # EPS up 18% in the year w Return on investment 13.8% for FY03 w Return on equity 14.6% for FY0O3
Slide 14: Focus on cost containment resulted in 2nd half NPAT matching 1st half
Focus on cost containment resulted in 2"¢ half NPAT matching 15* half despite higher nursing wages and seasonal factors Premier position in market sees North Shore Private record strong double digit EBIT growth Westmead exceeding expectations, with EBIT growth above 50% in the year, as ramp-up conti
Slide 15: DVA Contract
nae say DVA Contract ALYH CARE e» RHC will continue to have a contract with DVA for services to veterans at Greenslopes and Hollywood post-2006 » Facilitates the continuation of vital service to veterans » Greenslopes and Hollywood will continue as major providers of hospital services to veterans in
Slide 16: Outlook and Guidance
ALYH CARE naneay Outlook and Guidance Strategic position of RHC hospitals expected to keep demand strong against a slight industry softening Focus on cost containment and growing business Expansion program benefits continue to contribute to earnings - Greenslopes, Lake Macquarie Continue to pursue s
Slide 17: Acquisitions
wa nnaay Acquisitions ALYH CARE » Aged Care >» Discussions with Moran Health Care ongoing - complexities surround the property trust structure > Continue to pursue other opportunities a» Hospitals >» Looking at selected Mayne hospitals
Slide 18: Appendix
ne ms RAMSAY HEALTH CARE Appendix
Slide 19: Revenue Growth Time Line
AY Revenue Growth Time Line LE, RAM HEALTH Perth | Alpha Hosp Veteran Hosp RHC listed Group Privatisation on the ASX Acquired _ $m Feb’94 Sept'o7 — May'01 Brisbane == =~ == =~—~—sCCo-located Veteran Hosp 7 — + North Shore Privatisation _.| Private Hosp — Jan'95 || Opened Jul'98 | 1993 1994 1995 1996
Slide 20: Financial Indicators
RAMSAY HEALTH CARE Financial Indicators Six months ended 31 Dec’01 | 30 Jun’02| 31 Dec’02 30 Jun’03 ROIC (2) . . * 14. (EBIT/Funds Employed) % 14.4 14.9 14.3 3 (2) ROE 12.1 13.9 14.3 14.6 (NPAT/Shareholder Funds) % (1) Cairns excluded - acquired in Nov’02 (2) Calculated using rolling 12 months figur
Slide 21: Facility Portfolio
RAMSAY Facility Portfolio HEALTH CARE | Number 12) Veteran 2 953 Co-located 3 379 Regional Medical - Surgical 10 873 Psychiatric 8 546 Rehabilitation otels
Slide 22: Revenue Analysis
HEALTH Cd Revenue Analysis Revenue by Operating Division 030% @ Veteran O Co-located @ Rehabilitation O Medical-Surgical @ Psychiatric Revenue by Payor Source B34% 53% O Health Insurance @ Dept. Veteran Affairs @ Government O Other
Slide 23: RAMSAY |
ne ms RAMSAY | HEALTH CARE