Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Macquarie Connections 12th Annual Australia Conference (May 2011)
17 slides from Ramsay Health Care's conference presentation, May 5, 2011
Slide 1: Macquarie Connections 12th Annual Australia Conference
For personal use only Macquarie Connections 12th Annual Australia Conference 5 May 2011 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only About Ramsay Health Care Growth Story Formula For Success Recap Half-Year Results Operating Environment Australia − Sunshine Coast Development Operating Environment UK Operating Environment France Our Growth Strategy Capital Management Outlook 2
Slide 3: About Ramsay Health Care
ABOUT RAMSAY HEALTH CARE For personal use only Expanding global hospital operator Employing more than 30,000 people across three continents Largest private hospital operator in Australia, approximately 30% market share Entered the UK with the acquisition of Capio UK (Ramsay UK) in November 2
Slide 4: Delivering Strong Shareholder Returns
GROWTH STRATEGY DELIVERING STRONG SHAREHOLDER RETURNS For personal use only 3000 Ramsay Total Shareholder Return 1 Jan 2000 to 29 April 2011: 2584% 2500 Ramsay Total Shareholder Return versus ASX100 Accumulation Index (share price appreciation plus reinvestment of dividends) 2000 Index (base of 100)
Slide 5: Revenue Growth
REVENUE GROWTH For personal use only A$B 4.0 Compound Annual Growth Rate (CAGR) of 24.4% 3.5 Actual Revenue 3.0 Estimated Revenue FY2011 2.5 Estimate 2.0 1.5 1.0 0.5 0.0 Financial Year ended 30 June * FY 2010 –Ramsay Santé acquired 29 March 2010 5
Slide 6: Core EPS Growth
CORE EPS GROWTH For personal use only 90.0 Compound Annual Growth Rate 80.0 (CAGR) of 16.1% 70.0 60.0 Cents per Share 50.0 40.0 30.0 20.0 10.0 0.0 Financial Year ended 30 June * FY 2010 – Ramsay Santé acquired 29 March 2010 6
Slide 7: Our Formula for Success
OUR FORMULA FOR SUCCESS For personal use only Management and culture – Long term, stable management team, special culture (“The Ramsay Way”), industry leaders – Ramsay can export proven management model and blend it with local expertise Strong growth strategy – Ramsay’s growth strategy has remai
Slide 8: Group Financial Performance
GROUP FINANCIAL PERFORMANCE HALF-YEAR ENDED 31 DECEMBER For personal use only 2010 2009 % $m $m Increase Australia/ UK France Group(1) Group Indonesia Operating Revenue 1,479.2 290.5 94.4 1,864.1 1,682.9 10.8% EBITDA 222.1 37.4 12.3 271.8 235.3 15.6% EBIT 174.4 22.8 7.3 204.6 171.6 19.2% Core NPAT (
Slide 9: Group Revenue & EBITDAR Analysis
GROUP REVENUE & EBITDAR ANALYSIS For personal use only Revenue EBITDAR Australia/Indonesia 79% Australia/Indonesia 73% UK 16% UK 22% France 5% France 5% NOTE: Data is from the six months ended 31 December 2010 9
Slide 10: Operating Environment - Australia
OPERATING ENVIRONMENT - AUSTRALIA For personal use only Growth in demand underpinned by positive demographics Stable operating environment Private hospital sector an integral part of the Australian health care system − Treats more than 40% of all patients who go to hospital each year Biparti
Slide 11: Sunshine Coast Development
SUNSHINE COAST DEVELOPMENT For personal use only Ramsay to build, own and operate private hospital – Co-located with the future public Sunshine Coast University Hospital – 200-patient capacity hospital – Due to open late 2013 – 50-year lease Significant range/volume of services to public patient
Slide 12: Operating Environment - UK
OPERATING ENVIRONMENT - UK For personal use only Economic conditions remain challenging NHS largely protected from public spending cuts Major reorganisation of NHS currently underway Private sector involvement recognised as vital and could grow Some green shoots in self pay sector PMI ye
Slide 13: Operating Environment - France
OPERATING ENVIRONMENT - FRANCE For personal use only Operating environment stable Current blended provision well regarded Economy appears robust Reorganisation of health administration undertaken has devolved decision making Growth in demand underpinned by positive demographics Opportuni
Slide 14: Well-Defined Growth Strategy
WELL-DEFINED GROWTH STRATEGY For personal use only Ramsay’s growth strategy has remained clear and consistent, with a sole focus on managing private hospitals • Quality portfolio of hospitals Organic • Ongoing business improvement • Underpinned by demographics (ageing and expanding population ) •
Slide 15: Capital Management
CAPITAL MANAGEMENT For personal use only Leverage = Net Debt / EBITDA Debt Profile 6.0 Affinity Acquisition − Committed senior bank $1.4 B debt facilities of $1.9B in 5.1 place until November next 5.0 year Capio UK Acquisition £193 M − Headroom of $600-$700M 4.0 3.7 after current brownfield Ramsay
Slide 16: Outlook
OUTLOOK For personal use only Business well positioned to continue performing strongly Ramp-up of completed brownfield developments to continue adding to earnings at EBIT and EPS level Ramsay UK continues to perform strongly in a challenging environment More opportunities for consolidation i
Slide 17: Questions
For personal use only QUESTIONS
Ramsay Health Care — Macquarie Connections 12th Annual Australia Conference (May 2011) on 6ix