Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Investor Day (December 2021)
64 slides from Ramsay Health Care's investor day presentation, Dec 10, 2021
Slide 1: ASX Announcement: 2021 Investor Briefing Day 1 Presentation
ASX ANNOUNCEMENT 10th December 2021 RAMSAY HEALTH CARE – 2021 INVESTOR BRIEFING – DAY 1 PRESENTATION For personal use only Ramsay Health Care (ASX:RHC) (Ramsay) is hosting virtual investor briefings on both the 10th and 13th of December 2021.The session on the 10th December will also be held in pers
Slide 2: Ramsay Health Care Investor Briefing December 2021
For personal use only Ramsay Health Care Investor Briefing December 2021 ramsayhealth.com
Slide 3: Important information
Important information For personal use only The information in this presentation is general background information about Ramsay Health Care Limited and its subsidiaries (Ramsay Group) and their activities and is current as at 10 December 2021. It is in summary form and is not necessarily complete. T
Slide 4: Group Strategy Update
For personal use only Group Strategy Update Managing Director & CEO Craig McNally Group CFO Martyn Roberts ramsayhealth.com
Slide 5: Agenda – Friday 10th December
Agenda Group Overview Craig McNally – Managing Director & CEO Martyn Roberts – Group Chief Financial Officer 9:30 – 10:10am For personal use only Friday 10th December 10:10 – Ramsay Australia Carmel Monaghan – CEO Ramsay Australia 11am 11.00 – Break 11:10am Craig McNally – Managing Director & CEO Ma
Slide 6: Agenda – Monday 13th December
Sydney: 5.00 – 5:40pm Agenda For personal use only Ramsay Santé Pascal Roché – CEO Ramsay Santé London: 6.00 – 6:40am France: 7.00 – 7:40am Monday 13th December Sydney: 5:40 – 6:20pm Ramsay UK Dr. Andrew Jones – CEO Ramsay UK London: 6:40 – 7:20am France: 7:40 – 8:20am Craig McNally – Managing Direc
Slide 7: Ramsay Health Care Overview
Ramsay Health Care Overview Ramsay Health Care (Ramsay) was founded by Paul Ramsay in For personal use only 1964 and delivers a wide range of acute and primary healthcare services to private and public patients from more than 460 locations across 10 countries. The Group’s 80,000+ employees together
Slide 8: Strengths of the Global Business
Strengths of the Global Business For personal use only Market leading Deep and Strong and positions and experienced global constructive globally leadership team and relationships with recognised brand leadership public sector development stakeholders Strong Diversified embedded Portfolio – Economies
Slide 9: Ramsay Strategy Update – Key Trends Driving Change
Ramsay Strategy Update – Key Trends Driving Change Creates opportunities to drive growth and improve stakeholder outcomes For personal use only Key Trends Major changes expected • Patients seeking greater convenience and a consumer-centric experience Changing patient and doctor • Doctors seek to bro
Slide 10: Strategy Overview
Strategy Overview RAMSAY’S Strategic Vision: To be a leading health care provider of the future For personal use only Growing, modernising and leveraging our Moving purposefully into New & Adjacent Services World Class Hospital Network Providing integrated patient-centric care Along the In broader O
Slide 11: Develop Our World Class Hospital Network
growing, modernising Develop Our World Class Hospital Network and leveraging our World Class Hospital Network For personal use only Strategic Themes Organic Growth Expansion Organic growth through Strategic investment in size & volume accretion and local scale of core hospital business Definitions d
Slide 12: Leverage our Position into New & Adjacent Services
Leverage our Position into New & Adjacent Services moving purposefully into New & Adjacent Services For personal use only Integrated patient- Extended patient Broader digi- New services in New payers & Themes centric care pathway physical care key therapeutic funding models delivery areas Coordinate
Slide 13: Operational Excellence
extracting the highest Operational Excellence potential value by Operational Excellence For personal use only Optimisation Strategic Sourcing Themes Leverage global platform to Focus on category-led and share best-practices & drive value-based procurement efficiencies in hospital strategies, at both
Slide 14: Strong Organisational Foundations
reinforcing Ramsay’s Strong Organisational Foundations Strong Organisational Foundations For personal use only Transformational Strategic Gold standards Industry leading Disciplined Ramsay digital and data relationships and Themes of clinical care talent transformation Cares investment M&A capabilit
Slide 15: Transformational Digital & Data Investment
reinforcing Ramsay’s Transformational Digital & Data Investment Strong Organisational Foundations Strong Organisational Foundations For personal use only Ramsay is committed to further investment in enhancing its digital and data capabilities Market Trend Description Digital Front Door The digital f
Slide 16: Industry Leading Talent
reinforcing Ramsay’s Industry Leading Talent Strong Organisational Foundations For personal use only Our People Strategy CAPABILITY INDUSTRY LEADING DEVELOPMENT CULTURAL CHANGE TALENT Priorities Headline measures Leadership Development • Robust data & digitisation • Engagement Learning • Strat
Slide 17: Industry Leading Talent – Workforce Initiatives
reinforcing Ramsay’s Industry Leading Talent – Workforce Initiatives Strong Organisational Foundations Initial priorities use only GLOBAL EMPLOYEE VALUE PROPOSITION Develop world-class global EVP, with regional variations LEADERSHIP ACADEMY Further develop the Ramsay Global Longer term priorities Le
Slide 18: Our Sustainability Journey
reinforcing Ramsay’s Our Sustainability Journey Strong Organisational Foundations For personal use only 2020 Established first Global Sustainability Policy and Global Sustainability Global Global Committee consultation Ramsay Cares approach 2021 Improved reporting Sustainable Ramsay Cares First GRI
Slide 19: Healthier People
Healthier People reinforcing Ramsay’s Strong Organisational Foundations For personal use only Progress Focus Patient quality & experience Culture & engagement • Delivered high-quality care • Evolving The Ramsay Way • +70NPS across Aus, UK, Europe • Global engagement and culture survey Trusted partne
Slide 20: Thriving Planet
reinforcing Ramsay’s Thriving Planet Strong Organisational Foundations For personal use only Progress Focus Energy Onsite renewable energy • Energy use increased due to • Install 6.3MW of onsite solar by 2026* changes with easing of COVID restrictions (except Aus) Energy efficiency • Rolling out ene
Slide 21: Stronger Communities
Stronger Communities reinforcing Ramsay’s Strong Organisational Foundations For personal use only Progress Focus Advancing research & clinical trials Health care innovation 1000+ clinical trials and research Facilitating leading medical research and clinical trials projects in areas such as cancer,
Slide 22: Regional Initiatives
Regional Initiatives reinforcing Ramsay’s Strong Organisational Foundations For personal use only We are cutting plastic waste and saving money Our sites are rolling out solar by replacing single use panels, repurposing unwanted plastics, such as water IT assets and recycling plastic bottles and cut
Slide 23: Driving Transformation & Growth
reinforcing Ramsay’s Driving Transformation & Growth Strong Organisational Foundations For personal use only RAMSAY BOARD Ramsay Strategy Steering Committee (Global Exco) Regional CEO·s Group Chief Growth Officer Dr Andrew Jones Global Chief Digital & Global Chief Medical Data Officer Officer Strate
Slide 24: Martyn Roberts, Group CFO
For personal use only Martyn Roberts Group CFO ramsayhealth.com
Slide 25: Leverage and Capital Allocation – Simplified Corporate Structure
Leverage and Capital Allocation Ramsay Simplified Corporate Structure For personal use only Consolidated Group Paul Ramsay Public Foundation Shareholders Comprised of Ramsay Health Care Limited and all of its subsidiaries 18.8% 81.2% Ramsay reports its financial results on a Consolidated Group b
Slide 26: Ramsay Consolidated Group Leverage
Ramsay Consolidated Group Leverage The funds drawn down and held in escrow for the Spire Healthcare plc (Spire)¹ transaction ($1.96bn) were treated as current assets, impacting For personal use only leverage metrics at 30th June. Proforma debt, leverage and return metrics (assuming the Spire transac
Slide 27: Ramsay Funding Group Leverage
Ramsay Funding Group Leverage Funding Group ascribed investment grade rating of BBB (Stable) by Fitch in May 2021 For personal use only Available Funding Group un-drawn debt capacity and cash headroom at 30th June 2021 was $1.147bn (proforma basis $2.355bn) Fitch calculated FFO adjusted levera
Slide 28: Ramsay's Capital Allocation
Ramsay’s Capital Allocation Capital allocation since 2012¹ For personal use only Ramsay’s capital allocation over time ($bn)¹ Ramsay Santé’s Share buyback 2% Acquisitions (net) Debt repayment acquisition of Capio Capex $2.4bn (net) 14% Acquisition of 52.5% $2.2bn Dividends of Générale de Santé Divid
Slide 29: Capital Allocation – Investment Parameters
Capital Allocation – Investment Parameters Investment parameters updated for a post AASB16 environment to cashflow based metrics For personal use only New Investment Parameters Brownfield Developments & Other Investments Greenfield Developments & Acquisitions Primary Metrics (Project Metrics) Proj
Slide 30: Capital Allocation – Capital Expenditure
Capital Allocation – Capital Expenditure For personal use only FY21 and FY22F Capital Expenditure by FY22F Group Capital Expenditure by Region (%) FY22F Group Capital Expenditure by Type (%) Region $’m 900-1,100 35 674 43 45 43 400-500 400-460 260 356 100-140 58 8 15 12 Asia Pacific UK Europe Group
Slide 31: Appendix
For personal use only Appendix ramsayhealth.com
Slide 32: Ramsay Health Care At a Glance
Ramsay Health Care At a Glance FY21 Geographic Revenue Split FY21 Geographic EBITDAR¹ Split Admissions by Activity6 Payor Sources5 14% 8% For personal use only 9% 14% Surgical 5% Private health 41% 39% Medical 52% insurance 7% 45% 52% Rehab A$13.3bn A$2.2bn Public funding 37% 43% Mental health 22% O
Slide 33: Glossary
Glossary Abbreviation Description ABS Australian Bureau of Statistics M&A Mergers and Acquisitions AHPEQS Australian Hospital Patient Experience Question Set MBS Medicare Benefits Schedule AI Artificial Intelligence MDT Multidisciplinary Team For personal use only AIHW Australian Institute of Health
Slide 34: Ramsay Health Care Australia
For personal use only Ramsay Health Care Australia CEO Australia Carmel Monaghan ramsayhealth.com
Slide 35: Ramsay Australia
Ramsay Australia 32 32,000 72 Allied health and psychology outpatient clinics Employees For personal use only In Australia, Ramsay Health Care: Hospitals & day surgeries • Is the largest operator of private hospitals in the country • The largest provider of acute mental health care (inpatient, outpa
Slide 36: Strong Track Record in Earnings Growth
Strong Track Record in Earnings Growth For personal use only Ramsay Australia has a strong track record in delivering earnings growth for the group Comments Historical Revenue Growth (Asia Pacific) Historical EBITDAR and Margin % (Asia Pacific) 6,000 12% 1,200 25% • Strong track record of revenue an
Slide 37: Industry Trends in Australia
Industry Trends in Australia Underlying demand fundamentals remains strong and PHI coverage has improved. Currently constrained public system and For personal use only workforce shortages highlight the critical role of the private sector in addressing the demand for care Ageing and growing populatio
Slide 38: Insights from Latest APRA Data
Insights from Latest APRA Data Market underpinned by continued PHI growth. Ramsay has enjoyed favourable growth in admissions compared to other private For personal use only hospitals over the past twelve months to September 2021 Market Insights from APRA data (Sep 21) Growth in PHI Coverage 11.6 47
Slide 39: Industry Risks and Opportunities
Industry Risks and Opportunities A number of factors influencing current environment. Ramsay is best placed to navigate the challenges and capitalise on For personal use only opportunities as they present Market Risk / Opportunity Ramsay Response Medicare benefits schedule Private hospitals have had
Slide 40: Infrastructure Overview
Infrastructure Overview Ramsay’s significant hospital, outpatient and community footprint enables it to deliver high quality healthcare to a large For personal use only proportion of the Australian population Comments Facility Composition Inpatient Hospital Facilities Day Hospitals, Outpatient and C
Slide 41: Admitted Activity: Overview
Admitted Activity: Overview RHCA has seen increased day case growth following COVID-19. Capital investment, specialty specific strategies, public partnerships, For personal use only and increased emergency services will drive ongoing growth Comments Admitted Patient Profile Admission Growth: Surgica
Slide 42: Admitted Activity: Rehabilitation
Admitted Activity: Rehabilitation Ramsay’s rehabilitation business continues to see an increasingly more complex and acute demographic not suitable for For personal use only rehabilitation in the home. Long term fundamentals for this business remain strong Overview Composition of Services Recent Mar
Slide 43: Admitted Activity: Mental Health
Admitted Activity: Mental Health For personal use only Demand for Mental Health services is strong and growing. Ramsay’s leading position in this market positions us well for further growth, including through public contracts Overview Composition of Services Recent Market Dynamics • 27 sites current
Slide 44: Outcomes, Quality, Experience
Outcomes, Quality, Experience For personal use only Ramsay delivers exceptional outcomes for its patients and customers Patient Safety Patient Experience APHEQS Safety huddles across all facilities (Overall Quality of Net Promoter Score (NPS) Reduction in iron infusion events through No Stain ca
Slide 45: Outcomes, Quality, Experience – Therapeutic Areas
Outcomes, Quality, Experience For personal use only Ramsay delivers exceptional outcomes for its patients and customers across key therapeutic areas Cancer Care: Introduction of cancer care navigator role, with 14 navigators now appointed Investment in clinical trials ‘Activate’ a cancer recon
Slide 46: Strategy Update
For personal use only Strategy Update ramsayhealth.com
Slide 47: Ramsay Australia Organisational Structure
Ramsay Australia Organisational Structure For personal use only Office of the CEO Policy CEO Communications Executive Assistant Chief Financial Chief Business Chief Data & Chief People Chief Risk Officer Chief Nurse & Chief Operating Chief Operating Chief Medical Officer Development Digital Officer
Slide 48: Key Growth Areas
Key Growth Areas For personal use only Hospitals Day Surgeries Out of Hospital Mental Health Adjacencies 47 RHC Investor Day Presentation December 2021
Slide 49: Organic Growth
growing, modernising and leveraging our World Organic Growth Class Hospital Network Ramsay continues to focus on key strategies that will enable continued organic growth in revenue and EBIT as trading conditions For personal use only normalise Current Factors Influencing Organic Growth Critical Succ
Slide 50: Capacity Expansion
growing, modernising and leveraging our World Capacity Expansion Class Hospital Network Ramsay has a strong pipeline of brownfield and greenfield opportunities, which will both enhance and expand our portfolio of For personal use only facilities and drive future growth Development Type Key Investmen
Slide 51: Currently Approved Developments
growing, modernising and leveraging our World Currently Approved Developments Class Hospital Network For personal use only Over $700m of projects already approved and underway, with further significant pipeline opportunities Current Projects and Forecast Completion FY22 FY23 > FY23 Consult Hospital
Slide 52: Selected Projects
growing, modernising and leveraging our World Selected Projects Class Hospital Network Approved projects – Investment in Tier 1 sites will continue to expand and cement Ramsay’s leading position in emergency and For personal use only high acuity care Greenslopes Private Hospital Hollywood Private Ho
Slide 53: Selected Projects – Greenfield
growing, modernising and leveraging our World Selected Projects Class Hospital Network For personal use only Greenfield Projects currently under development Northern Private Hospital Ramsay Clinic Ipswich Approved Gross Investment: $133.4m Approved Gross Investment: $22.0m Forecast completion: FY24
Slide 54: Major Developments in the Pipeline
growing, modernising and leveraging our World Major Developments in the Pipeline Class Hospital Network For personal use only Major Potential Developments in the pipeline include Lake Macquarie, Joondalup and Wollongong¹ Lake Macquarie Private Hospital Joondalup Private Hospital Wollongong Private H
Slide 55: Comprehensive and Integrated Health Care
moving purposefully into Comprehensive and Integrated Health Care New & Adjacent Services For personal use only Create a leading ecosystem for outcome focused integrated care Comprehensive MDTs and Patient Network Efficiency Skilled & Engaged The Ramsay Way Funding Packages Navigation and Digitisati
Slide 56: Stand-alone Day Surgeries
moving purposefully into Stand-alone Day Surgeries New & Adjacent Services Ramsay will continue to expand its community presence through an increased number of community surgical centres in For personal use only strategically considered areas Comments Stand-alone Community Surgical Centres • Ramsay
Slide 57: Integrated Care for Mental Health
moving purposefully into Integrated Care for Mental Health New & Adjacent Services VISION: Become the leading provider of mental health services in the country with improved customer experience and access using For personal use only lower cost care settings attractive to payers Recent Update Integra
Slide 58: Outpatient and Community Care
moving purposefully into Outpatient and Community Care New & Adjacent Services Ramsay continues to develop and grow its outpatient and community services, as part of its comprehensive and integrated health For personal use only care strategy Hospital and Rehab in the Home Ramsay Health Plus • Ramsay
Slide 59: Adjacencies
moving purposefully into Adjacencies New & Adjacent Services For personal use only A range of options remain open to Ramsay in regards to our integration of adjacent services Radiology, pathology and radiation therapy providers have typically been engaged by Ramsay Australia hospitals at a local l
Slide 60: Procurement Optimisation
extracting the highest potential value by Procurement Optimisation Operational Excellence For personal use only Ramsay will continue to unlock significant value through its procurement strategy over the next three years Comments Priorities • New global procurement lead and procurement team • Optimis
Slide 61: Workforce Initiatives
reinforcing Ramsay’s Strong Organisational Workforce Initiatives Foundations Ramsay is implementing a range of measures to ensure it stays highly competitive and in turn mitigating the risks presenting in the For personal use only currently competitive labour market, particularly for skilled nursing
Slide 62: Workforce Initiatives
reinforcing Ramsay’s Strong Organisational Workforce Initiatives Foundations A strong workforce strategy with industry leading talent will be a key differentiator and is critical to our future success For personal use only 61 RHC Investor Day Presentation December 2021
Slide 63: Ramsay Cares
reinforcing Ramsay’s Strong Organisational Ramsay Cares Foundations For personal use only Ramsay Australia is driving action through three pillars: healthier people, stronger communities and a thriving planet Ramsay Cares Initiatives • Quality care & experience - Cared for over 1m • Energy - Reduced
Slide 64: Ramsay Health Care Investor Briefing
Ramsay Health Care For personal use only Investor Briefing We will return for the Q&A session in 10 minutes ramsayhealth.com