Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Deutsche Bank Australia Corporate Day, London (March 2013)
22 slides from Ramsay Health Care's conference presentation, Mar 12, 2013
Slide 1: Ramsay Health Care – Deutsche Bank Australia Corporate Day
For personal use only Ramsay Health Care Deutsche Bank – Australia Corporate Day London 12 March 2013 Christopher Rex, Managing Director Bruce Soden, Chief Financial Officer
Slide 2: Agenda
AGENDA For personal use only 1. Ramsay Health Care – Overview 2. Growth Story & Formula for Success 3. Half-year Group Operational & Financial Highlights 4. Half-year Operational & Financial Highlights - by Country 5. Outlook 2
Slide 3: Ramsay Health Care – Overview
RAMSAY HEALTH CARE – OVERVIEW For personal use only • One of the largest & most successful private hospital operators in the world: – Operating 116 hospitals & facilities across 4 countries – 10,000 beds – 30,000 staff – Treating over 1 million patients per annum – Extensive education & training, in
Slide 4: Growth Story & Formula for Success
Growth Story & Formula for Success a
Slide 5: 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”) – Ramsay can export proven management model and blend it with local expertise • Modus operandi and strong growth strategy – Ramsay’s growth strategy has rema
Slide 6: Strong Growth Strategy
STRONG GROWTH STRATEGY For personal use only Sustainable growth enhanced by focusing on hospitals and taking a prudent approach to acquisitions Brownfield Creation of Public/Private Organic + Capacity + Collaborations + Acquisitions Shareholder Expansion Value Underpinned by Unmet demand Potential f
Slide 7: Consistently Delivering Strong Total Shareholder Returns (TSR)
CONSISTENTLY DELIVERING STRONG TOTAL SHAREHOLDER RETURNS (TSR) For personal use only Compound Annual Rate of Growth over 15 years 22-Feb-13 Ramsay Health Care TSR 24.3% 2,731% Vs S&P/ASX 100 Acc Index 8.3% 22-Feb-13 243% (1) (1) Ramsay Health Care Listed on ASX – 23 September 1997 7 SOURCE: Deutsche
Slide 8: Ramsay Health Care – TSR Alpha Performance
RAMSAY HEALTH CARE – TSR ALPHATM PERFORMANCE For personal use only • Ramsay ranked(1) third in a survey of Australian ASX100 companies, in terms of TSR AlphaTM performance over the five-year period to 31 December 2012 • The TSR AlphaTM scorecard is a stand alone metric that takes into account : – To
Slide 9: Half Year Group Operational & Financial Highlights
Half Year Group Operational & Financial —_
Slide 10: Financial Highlights - 1st Half FY 2013
FINANCIAL HIGHLIGHTS - 1ST HALF FY 2013 For personal use only • Group Revenue – $2.1 billion 5.2% • Group EBIT – $248.4 million 8.8% • Core NPAT – $148.2 million 12.3% • Core EPS – 69.1 cents/share 13.7% • Interim Dividend – 29.0 cents/share 13.7% (fully franked) • Upgraded guidance for Core NPAT an
Slide 11: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only • Results reflect solid performance across worldwide portfolio • Completed brownfield capacity expansion projects meeting growing demand and adding to EBIT and EPS • In Australia, private health insurance membership remains strong (46.9% with hospital tre
Slide 12: Brownfield (Capacity Expansion) Developments
BROWNFIELD (CAPACITY EXPANSION) DEVELOPMENTS For personal use only • Proven track record of undertaking successful brownfield expansion • Extensive programme of hospital redevelopments & expansions currently underway • Approximately $95 million spent on brownfield projects in the half year. A furthe
Slide 13: Leverage & Cash Management
LEVERAGE & CASH MANAGEMENT For personal use only Leverage Cash Flow 6X Affinity $m Acquisition $1.4b 5.1 350 5X Capio UK 300 Acquisition £193m 4X 3.7 Ramsay Santé 250 3.3 Acquisition €87m 3X 200 2.4 2.7 2.7 1.9 150 2X 1.5 1.5 Dec'11 Dec'12 Gross Operating Cash Flow 1X FY05 FY06 FY07 FY08 FY09 FY10 F
Slide 14: Half Year Operational & Financial Highlights by Country
Half Year Operational & Financial Highlights — by es
Slide 15: Geographical Segments
GEOGRAPHICAL SEGMENTS For personal use only Operating Revenue EBITDAR 5% 4% 13% 18% 2% 2% 80% 76% Australia Australia Indonesia Indonesia United Kindom United Kingdom France France Strong Australian business is the largest contributor to earnings and cash flow 15
Slide 16: Operational/Financial Highlights – Australia
OPERATIONAL/FINANCIAL HIGHLIGHTS – AUSTRALIA For personal use only • Revenue up 7% to $1.66 billion • EBIT up 10% to $219 million • Australian hospital EBITDA margin up 50 bpts to 18.6% • Private health insurance (PHI) membership remains strong despite challenges presented by changes to PHI policy r
Slide 17: Operational/Financial Highlights – Indonesia
OPERATIONAL/FINANCIAL HIGHLIGHTS – INDONESIA For personal use only • Strong operating result for the half year • Revenue up 11% to IDR 316 billion • EBIT up 46% to IDR 33 billion • EBITDA margin up 180 bpts to 16.3% • Continued opportunity to grow • Emerging market with burgeoning middle class and a
Slide 18: Operational/Financial Highlights – Europe
OPERATIONAL/FINANCIAL HIGHLIGHTS – EUROPE For personal use only Ramsay UK • Revenue up 1.5% to £179 million • EBITDAR up 1.5% to £45 million • EBITDAR margin remains strong at 25% • Private Medical Insured admissions remain subdued but continued growth from NHS admissions with 9% growth over the pre
Slide 19: Outlook
For personal use only 19
Slide 20: Global Market Trends in Healthcare
GLOBAL MARKET TRENDS IN HEALTHCARE For personal use only • Growing & ageing population will continue to drive demand for healthcare • Governments increasingly concerned about the rising costs of healthcare • Patients looking for & willing to pay for higher quality healthcare • Increasing GDP & affor
Slide 21: Outlook
OUTLOOK For personal use only • Positive market dynamics indicate strong upside for Ramsay • Growing and ageing population will continue to drive our investment in capacity expansion • Remain positive about opportunities overseas including emerging markets and the opportunity to apply our proven hea
Slide 22: For personal use only
For personal use only ae aS RAMSAY HEALTH CARE
Ramsay Health Care — Deutsche Bank Australia Corporate Day, London (March 2013) on 6ix