Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (November 2009)
28 slides from Ramsay Health Care's shareholder meeting presentation, Nov 24, 2009
Slide 1: Ramsay Health Care Annual General Meeting
For personal use only RAMSAY HEALTH CARE ANNUAL GENERAL MEETING 24 November 2009 CHRISTOPHER REX MANAGING DIRECTOR
Slide 2: Overview
OVERVIEW For personal use only 1. Recap FY 2009 results 2. About Ramsay Health Care 3. ‘The Ramsay Way’ 4. Operating environment - Australia and the UK 5. Growing demand for health care 6. Strong growth strategy 7. Brownfields progress - Australia and the UK 8. Capital management 9. Outlook 2
Slide 3: Recap FY 2009 Results
RECAP FY 2009 RESULTS For personal use only • Strong rise in Group core net profit, reflects continued strength of underlying business ¾ Core Net Profit After Tax up 18.9% to $146.4 million ¾ Core EPS up 22.1% to 74.1 cents ¾ Group revenues up 20.6% to $3.2 billion ¾ UK business continues to perform
Slide 4: Operating Performance FY 2009 - Australia & Indonesia
OPERATING PERFORMANCE FY 2009 For personal use only • Australia & Indonesia ¾ Ramsay’s historical base operations, performed strongly on all operating levels ¾ Revenue up 10.7% to $2.5 billion ¾ Hospital admissions up 6% in Australia, up 14% in Indonesia ¾ Australian hospital EBITDA margins (excl. p
Slide 5: Operating Performance FY 2009 - United Kingdom
OPERATING PERFORMANCE FY 2009 For personal use only • United Kingdom ¾ UK operating result exceeded expectations ¾ Result reflects the benefits of cost restructuring ¾ NHS work continuing to grow in private hospitals, comprises 44% of Ramsay UK admissions, up from 25% same period last year ¾ Integra
Slide 6: Ramsay Health Care
RAMSAY HEALTH CARE For personal use only • Australia’s largest private hospital operator, with approximately 30% market share • More than 100 hospitals and facilities ¾ 65 in Australia ¾ 3 in Indonesia ¾ 40 in the UK • Annualised revenues approximately $3.4 billion • In top 100 Australian-listed com
Slide 7: Revenue Growth – Milestones
REVENUE GROWTH – MILESTONES For personal use only - Capio UK Acq. Nov’07 - Affinity Group Acq. Apr’05 - Benchmark Group Acq. Jul’04 - Greenslopes Major Expansion Opened May’03 Estimate - Hollywood Major Expansion Opened Jul’02 - Alpha Group Acq. May’01 - North Shore Private Hosp Opened Jul’98 RHC Li
Slide 8: Group Core NPAT and EPS Growth
GROUP CORE NPAT AND EPS GROWTH For personal use only Core EPS more than doubled over the last four years 18.9% $146m R 28% CA G $123m NPAT $110m Core $91m GR 20% A or e EPS C 22.1% C 74.1¢ 60.7¢ $54m 54.3¢ 45.3¢ 36.2¢ FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Core EPS (cents/share) Core NPAT ($m) - Co
Slide 9: Growth Strategy Delivering Strong Returns
GROWTH STRATEGY DELIVERING STRONG RETURNS For personal use only 500 ASX 200 Accumulation Index 450 ASX 200 Healthcare Accumulation Index Ramsay (TSR) 400 300.5% 350 300 250 104.6% 200 88.2% 150 100 50 0 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Ramsay Total Shareholder Return So
Slide 10: 'The Ramsay Way'
‘THE RAMSAY WAY’ For personal use only • ‘The Ramsay Way’ is the cornerstone of how we operate ¾ Culture: ⎯ Our success comes through recognising the value of our people and building constructive relationships with all our stakeholders ¾ Training: ⎯ Ramsay invests heavily in training and development
Slide 11: Operating Environment Australia
OPERATING ENVIRONMENT AUSTRALIA For personal use only • Private hospitals are a substantial part of Australian provider base ¾ 40% of patients treated in hospital each year are treated in private hospitals ¾ Private hospital admissions growing at 6.3% per annum versus 2.3% for public hospitals over
Slide 12: Operating Environment Australia - Balanced Health Care System
OPERATING ENVIRONMENT AUSTRALIA For personal use only • Balanced Health Care System ¾ High proportion of provision by private providers ¾ High proportion of funding from Government • Private health insurance remains attractive ¾ Minimal effect on membership from recent Federal Government changes to
Slide 13: Operating Environment – UK
OPERATING ENVIRONMENT – UK For personal use only • Well timed entry to radically changing market • Choose and Book (choice of provider) ¾ Continues to be a central part of provision • Potential NHS hospital divestments • Blended provider pattern emerging • General economy ¾ Will have an impact on Go
Slide 14: Growing Demand for Health Care
GROWING DEMAND FOR HEALTH CARE For personal use only • Demographic trends to underpin future demand for hospital care over the longer term in Australia and the UK ¾ Ageing population: “baby boomer” bulge ¾ Growing population: migration, higher birth rate and increased life expectancy • Technology ¾
Slide 15: Three Drivers of Growth: Organic Growth
THREE DRIVERS OF GROWTH For personal use only Ramsay has three major drivers of growth 1. Organic growth: ¾ Underpinned by demographic trends ¾ Quality portfolio of hospitals and continual business management improvement 15
Slide 16: Three Drivers of Growth: Brownfields
THREE DRIVERS OF GROWTH For personal use only 2. Brownfields: ¾ Capacity increase aimed at satisfying unmet demand ¾ Investing A$590 million (net) in Australian hospitals and £28 million in Ramsay UK facilities ¾ Based on track record of achieving ROI of 15% approximately 3 years after opening 16
Slide 17: Three Drivers of Growth: Acquisitions
THREE DRIVERS OF GROWTH For personal use only 3. Acquisitions: ¾ Global review of health care opportunities over the last two years ¾ Opportunities emerging in Europe ¾ Any acquisition must meet Ramsay’s strict investment criteria and add long-term value to shareholders 17
Slide 18: Brownfields Progress – Australia
BROWNFIELDS PROGRESS – AUSTRALIA For personal use only • Ramsay has spent approximately $350 million of the $675 million (gross) approved for expansion projects in Australia • Net investment to be $590 million after the sale of medical suites over FY09-FY11 • Including the Hollywood redevelopment, e
Slide 19: Brownfields Progress – Australia: Key Projects
BROWNFIELDS PROGRESS – AUSTRALIA For personal use only • Key projects include: Hospital Project Status Hollywood 4 additional theatres, Completed, opened (Perth) 130 additional beds, November 2009, on extra consulting suites, time and approx 10% expansion of day under budget surgery admission unit &
Slide 20: Brownfields Progress – Australia
BROWNFIELDS PROGRESS – AUSTRALIA For personal use only Hospital Project Status John Flynn Relocation and development Completed in (Gold Coast) of 18 additional rehabilitation FY09 beds, 20 additional orthopaedic beds New, expanded day surgery Due to be and operating theatres completed 2nd Half FY10
Slide 21: Brownfields Progress – Australia
BROWNFIELDS PROGRESS – AUSTRALIA For personal use only Hospital Project Status North West New consulting suite Consulting suite (Brisbane) block, additional development, 2 theatres, expanded day theatres completed surgery, construction of in FY09. Staged 30 single-bed block completion for balance of
Slide 22: Brownfields Progress – Australia
BROWNFIELDS PROGRESS – AUSTRALIA For personal use only Hospital Project Status Pindara Construction of 50 inpatient Due to be (Gold Coast) beds, 4 additional operating completed 1st theatres, construction of Half FY11 consulting suite building and multi-storey car park St George Construction of 44 i
Slide 23: Brownfields Progress – Australia
BROWNFIELDS PROGRESS – AUSTRALIA For personal use only Hospital Project Status Lawrence Major refurbishment, Completed Sept 09 Hargrave 13 additional beds Rehabilitation Hospital New Farm 16 additional beds Completed 1st Half Psychiatric FY09 Facility Warringal Construction of 62 Waiting Planning (M
Slide 24: Brownfields Progress – UK
BROWNFIELDS PROGRESS – UK For personal use only • Increasing NHS demand driving investment in capacity expansion at hospitals ¾ Around one third of £28 million capacity expansion programme is complete and operational. Balance of funds approved to be spent over FY10. ¾ Programme will increase theatre
Slide 25: Capital Management
CAPITAL MANAGEMENT For personal use only • Committed senior bank debt facilities of ~ $1.9 billion in place until November 2012 • Capital raising completed September/October, $260 million raised ¾ Underwritten Institutional Placement ~ $220 million ¾ Share Purchase Plan ~ $40 million 25
Slide 26: Capital Management
CAPITAL MANAGEMENT For personal use only • Capital raising proceeds used to reduce drawn debt, strengthen balance sheet and enhance Ramsay’s flexibility to pursue future growth opportunities • Post capital raising, headroom of $650-$750 million (after allowing for funding of current brownfield commi
Slide 27: Outlook
OUTLOOK For personal use only • Ramsay’s underlying business is in excellent shape ¾ Strong organic growth to continue ¾ Earnings from pipeline of quality brownfield projects to increase as projects are completed and ramp up ¾ First four months of FY10 in line with expectations • Pursuing acquisitio
Slide 28: Questions
For personal use only QUESTIONS
Ramsay Health Care — Shareholder Meeting (November 2009) on 6ix