Hca Healthcare, Inc. · NYSE:HCA
Hca Healthcare — FY2017 Earnings Presentation
17 slides from Hca Healthcare's earnings presentation, Feb 19, 2018
Slide 1: Investor Update 2017 Year End
Investor Update 2017 Year End
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures This presentation may contain certain forward-looking statements provided by Company management. These statements are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looki
Slide 3: Diversified mix of facilities, services, and settings
Diversified mix of facilities, services, and settings Ambulatory Access Acute Care Physicians Services Centers 179 120 123 ~1,200 Urgent Care Physician Clinics Hospitals ASCs Centers 47k 16 72 ~38k Active Medical Licensed Beds GI Centers FSERs Staff * Figures as of December 31, 2017 3
Slide 4: Attractive and diversified asset portfolio
Attractive and diversified asset portfolio HCA has a significant presence in 16 of the top 25 U.S. MSAs with the strongest Economic Health Index Boise Salt Lake Denver Kansas Northern City Virginia San Jose Las Nashville Richmond Vegas Wichita Southwest Southern Virginia California Myrtle Beach Atla
Slide 5: Committed to industry leading quality & service
Strategic guiding principles Committed to industry leading quality & service Growth through patient & physician relationships A well-informed response to the market environment Industry leading efficiency Development of future leaders 5
Slide 6: Strong and improving market share
Strong and improving market share HCA market share ranks 1st or 2nd in 28 of 38 studied markets Salt Lake 20% Denver 33% Kansas Northern City Virginia San Jose 22% 11% 19% Richmond Nashville Las Wichita 37% 34% Vegas 37% 31% Southern SWVA California 31% 24% Myrtle Beach 37% DFW Austin 17% Charleston
Slide 7: Consistent top line growth
Consistent top line growth Equivalent Admissions Admissions 2.2% 3.0% 1.94M 3.29M Revenue 5.7% $43.6B Emergency Surgeries Room Visits 1.4% 4.5% 1.48M 8.62M Percentages represent 5 year CAGR: 2012 – 2017 Values represent 2017 7
Slide 8: Adjusted EBITDA & EPS Growth
Adjusted EBITDA & EPS Growth $8.4 $8.2B Adjusted EBITDA in Billions $8.2 $8.0 $7.8 $7.6 $7.4B $7.4 $7.2 $7.0 2014 2015 2016 2017 3.5% 3 YR CAGR 12.7% Adj EBITDA Diluted EPS $7 $5.95 $6 Diluted EPS $5 $4.16 $4 $3 2014 2015 2016* 2017* * 2016 includes a legal claim benefit ($0.39 per diluted share). 2
Slide 9: Deploying a balanced allocation of capital
Deploying a balanced allocation of capital Investing in Growth $15.5B $5.3B Cash Flow from Capital Acquisition Expenditures Capital Operations $31.1B Delivering Shareholder Value $3.2B $11.0B Share Dividends Repurchases Cash Flows provided by Operations and primary uses of Cash Flows from March 2011
Slide 10: Provider system of choice
Provider system of choice Operational Excellence Coordination Access and Across Convenience Continuum Local Sustainable Growth Strong Comprehensive Physician Service Relationships Lines 10
Slide 11: Comprehensive access across the continuum
Comprehensive access across the continuum 3 Nashville, TN Market: 5 13 Hospital Campuses 21 Imaging Centers 7 Ambulatory Surgery Centers 3 7 Health Parks 7 57 TriStar Medical Group Locations 2 2 5 3 3 Freestanding ERs 11 CareNow Urgent Care Centers 1 Transfer Center * Figures as of December 31, 2017
Slide 12: Leveraging our scale
Leveraging our scale Improve our business Economies Drive growth Innovation Speed to market Capital Support execution 12
Slide 13: Committed to ensuring capacity and access
Committed to ensuring capacity and access $20.8B invested since the 2011 IPO 2018 Pipeline* Annual Capital Investment 652 Inpatient Beds 2011** 220 ER Beds 2012 2013 2014 2015 2016 2017 $3.02 $1.21 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 In Billions PP&E Acquisition * Does not include any
Slide 14: Advancing the patient experience
Advancing the patient experience Strong Leadership Partnering with Patient Engaged Experience Employees Physicians Big Data/ Technology 14
Slide 15: Partnering with physicians
Partnering with physicians VOICE PHYSICIAN ENGAGEMENT TIME GROWTH CLINICAL CAPABILITIES 15
Slide 16: Attractive demand projections
Attractive demand projections Growth in individual covered population, percent change, 2015-2019 Less than 0% 0% to 2% Salt Lake City 2% to 4% San Jose 4% to 6% Denver Richmond 6% to 9% Kansas City 9% to 15% Las Vegas 15% to 20% 20% to 25% Nashville Riverside 25% to 35% Myrtle Beach 35% or more Char
Slide 17: Sources of differentiation
Sources of differentiation DIVERSIFIED PORTFOLIO FINANCIAL SCALE STRENGTH DEEP AND STRONG EXPERIENCED OPERATING LEADERSHIP CULTURE 17