Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Macquarie Securities Australia Conference 2015
26 slides from Ramsay Health Care's conference presentation, May 6, 2015
Slide 1: Ramsay Health Care Limited – Macquarie Securities Australia Conference 2015
For personal use only Ramsay Health Care Limited MACQUARIE SECURITIES AUSTRALIA CONFERENCE 2015 6 May 2015 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only 1. Ramsay Health Care Overview 2. Group Financial Highlights for the six months ended 31 December 2014 3. Segment Financial Highlights and Operating Environment 4. Growth Strategy Update 5. Outlook 2
Slide 3: Ramsay Health Care
RAMSAY HEALTH CARE For personal use only • Over 50 years experience as a specialist hospital operator • 212 hospitals across 5 countries • 25,000 beds and places • Employs over 50,000 people • Admits around 3 million patients per annum • Strong, sustainable growth achieved through the combined strat
Slide 4: Strong Industry Fundamentals
STRONG INDUSTRY FUNDAMENTALS Demand for health care will remain strong with an ageing population, longer life expectancy, increase For personal use only chronic disease burden, population growth, and improvements in treatments and diagnostic methods. • The global population aged 60 or above is expec
Slide 5: Successful & Sustainable Growth Strategy
SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY For personal use only Acquisitions Exploring further Public/Private acquisitions in Collaborations existing and other Brownfield Capacity Expansion Potential for more markets Organic Growth partnerships to Ramsay has proven Unmet demand Underpinned
Slide 6: Revenue Growth Milestones
REVENUE GROWTH MILESTONES For personal use only A$m 7,500 Générale de Santé Acq. Oct’14, France ● 6,000 Medipsy Acq. Dec’13, France ● Revenue Growth RSD Joint Venture Jul’13, Asia ● Achieved through 4,500 Group Proclif Acq. Mar’10, France ● our consistent Estimate * focused strategy of: Capio Acq. N
Slide 7: Core Net Profit After Tax Growth
CORE NET PROFIT AFTER TAX GROWTH Compound Annual Growth Rate (CAGR) For personal use only A$m 400 350 300 250 200 150 100 50 0 • Core NPAT CAGR of 22.2% for the 17 years from FY1997 to FY2014 7
Slide 8: Core EPS and Dividend Growth
CORE EPS AND DIVIDEND GROWTH Over the 17 years from listing to 30 June 2014 180.0 For personal use only ¢/share Core Earnings per Share (EPS) 160.0 140.0 CAGR 16.6% 120.0 100.0 Core EPS 80.0 60.0 CAGR 40.0 20.0 - 90.0 ¢/share 80.0 Dividend Growth 70.0 CAGR 16.5% 60.0 50.0 Dividend 40.0 30.0 CAGR 20.
Slide 9: Strong Shareholder Returns
STRONG SHAREHOLDER RETURNS Ramsay Total Shareholder Return(1) versus S&P/ASX 100 Accumulation Index For personal use only 8000 Ramsay TSR Compound Annual Growth Rate (CAGR) 26.38% 7000 30-Apr-15 S&P/ASX 100 Accumulation Index (CAGR) 8.94% 6,174.5% 6000 Index (Base of 100) 5000 4000 3000 2000 100
Slide 10: Group Financial Highlights for the six months ended 31 December 2014
Nth Hi “ey Group Financial Highlights for the six months ended 31 December 2014 For personal use only
Slide 11: Half Year Financial Highlights
HALF YEAR FINANCIAL HIGHLIGHTS Six months ended 31 December 2014 For personal use only • Core NPAT up 19.1% to $204.4 million • Core EPS up 20.2% to 97.6 cents • Group: − Revenue up 41.6% to $3.3 billion − EBIT up 32.2% to $377.8 million • Australia/Asia: − Revenue up 8.8% to $2.0 billion − EBIT up
Slide 12: Leverage and Cash Management
LEVERAGE AND CASH MANAGEMENT Consolidated Balance Sheet For personal use only Leverage Ratio* 6x Affinity Acquisition 5.1 5x • Strong operating cash flow with Capio UK Acquisition high cash conversion rate Ramsay Santé Acquisition • Strong balance sheet with financial 4x 3.7 flexibility to continue
Slide 13: Segment Financial Highlights and Operating Environment
aN Sachi “na | Segment Financial Highlights and Operating Environment For personal use only
Slide 14: Half Year Financial Highlights and Operating Environment – Australia
HALF YEAR FINANCIAL HIGHLIGHTS AND OPERATING ENVIRONMENT – Australia For personal use only • Solid organic growth on the back of strong admissions growth • Australian hospitals operating margin (EBITDA) increased from 18.8% to 19.3% • Private health insurance remains robust with 47.2% participation
Slide 15: Half Year Financial Highlights and Operating Environment – United Kingdom
HALF YEAR FINANCIAL HIGHLIGHTS AND OPERATING ENVIRONMENT – United Kingdom For personal use only • Ramsay’s UK business continued to perform well with EBITDA rising 8.3% to £24.9 million • Strong double digit growth in NHS admissions of 12% in the first half • EBITDAR margins remain strong at 24.5% •
Slide 16: Half Year Financial Highlights and Operating Environment – France
HALF YEAR FINANCIAL HIGHLIGHTS AND OPERATING ENVIRONMENT – France For personal use only • Ramsay’s French operations (Ramsay Santé and GdS combined) EBITDA grew by 582% to €82.6 million as a result of strong organic growth and positive contributions from Medipsy(1) and Générale de Santé(2) acquisiti
Slide 17: Half Year Financial Highlights and Operating Environment – Asia
HALF YEAR FINANCIAL HIGHLIGHTS AND OPERATING ENVIRONMENT – Asia For personal use only • Asian joint venture continued to perform well with strong growth in the half year • The annual average growth in health spending in Asia (8.6% forecast in growth in spending each year between 2014 and 2018) will
Slide 18: Growth Strategy Update
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Slide 19: Brownfield Capacity Expansion
BROWNFIELD CAPACITY EXPANSION For personal use only • Positive demographics, an ageing population and quality hospital portfolio driving continued investment in capacity expansion • Approved over $1.5 billion worth of Brownfield capacity expansions over the last 9 years • Brownfield capacity expansi
Slide 20: Brownfield Capacity Expansion (Continued)
BROWNFIELD CAPACITY EXPANSION (Continued) For personal use only • In the half year to Dec 14, Ramsay completed $175m worth of expansions at existing facilities including: • Warringal Private, VIC (64 beds; 5 theatres; day surgery unit) - $58.2m • Pindara Private, QLD (113 beds; 3 theatres) – $53.3m
Slide 21: Brownfield Capacity Expansion (Continued)
BROWNFIELD CAPACITY EXPANSION (Continued) For personal use only • Other projects completed during the half year ended 31 December 2014: • Lake Macquarie Private, NSW (Theatre, CCU) – $7.6m • Kingsway Day Surgery, NSW (new hospital in Miranda) – $6.8m • Hillcrest Private, QLD (expanded mental health
Slide 22: Acquisitions
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Slide 23: Acquisitions
ACQUISITIONS For personal use only France - Générale de Santé • In October 2014, Ramsay finalised the acquisition of a controlling interest in Générale de Santé (GdS) and its 75 facilities (61 hospitals) • The acquisition brings Ramsay’s total portfolio in France to 115 facilities (101 hospitals) Ch
Slide 24: Outlook
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Slide 25: Outlook
OUTLOOK • Demographics will continue to drive capacity expansion opportunities For personal use only from which we expect ongoing benefits to flow • We will maintain our focus on improving performance at existing hospitals • Integration of Générale de Santé and growing this business will be a major
Slide 26: For personal use only
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