Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — UBS Australian Healthcare Conference 2008
20 slides from Ramsay Health Care's conference presentation, Nov 6, 2008
Slide 1: UBS Australian Healthcare Conference
For personal use only UBS Australian Healthcare Conference 6 November, 2008 Chris Rex, Managing Director
Slide 2: Agenda
For personal use only AGENDA • Ramsay investment profile • Well positioned in a robust industry • MLS update • Balanced healthcare system • PHI incentives maintained • FY08 financial highlights • Brownfields progress Australia and the UK • Ramsay UK update • Outlook 2
Slide 3: Ramsay Investment Profile
RAMSAY INVESTMENT PROFILE For personal use only • Australia’s largest private hospital operator and one of the largest private hospital operators in the world • Present on three continents: Australia, Asia and Europe • More than 100 hospitals and facilities – 64 in Australia, 3 in Indonesia, 36 in t
Slide 4: Well Positioned in a Robust Industry
WELL POSITIONED IN A ROBUST INDUSTRY For personal use only • Ramsay is a growth company operating in a robust industry and is well positioned in the current climate of economic uncertainty – Operates in a defensive sector – Business generates strong and consistent cash flow – Diversified revenue by
Slide 5: Defensive Sector
DEFENSIVE SECTOR For personal use only • The defensive characteristics of the health care sector make it an excellent industry to be in – Ageing population – “Baby boomer” bulge – Wealth demographic – Consumer attitudes to health and wellbeing – Increased expectations – Increased capabilities • Surg
Slide 6: Strong Cash Flow & Financial Management
STRONG CASH FLOW & FINANCIAL MANAGEMENT For personal use only • Ramsay is very focused on cash flow and working capital management • Business generates strong and consistent cash flow which underwrites debt servicing • Senior debt facilities were refinanced in November 2007 – Committed debt funding
Slide 7: Diversified Revenue – Payer Profile
DIVERSIFIED REVENUE – For personal use only PAYER PROFILE REVENUE BY REGION 2% 24% 25% 12% 20% 17% NSW Qld Vic WA/SA UK Indonesia • Diverse revenue source by payer mitigates risk 7
Slide 8: Clear and Disciplined Growth Strategy
CLEAR AND DISCIPLINED For personal use only GROWTH STRATEGY • Organic growth – Optimising growth at existing hospitals – Micro management • Investing in existing business – Improving the quality of our facilities – Brownfield expansion programme • Focused on growing and developing the UK business •
Slide 9: MLS Update
MLS UPDATE For personal use only • Compromise reached on Medicare Levy Surcharge (MLS) • Income threshold raised to $70,000 for singles and $140,000 for couples • Fundamentals of Private Health Insurance remain attractive • Little or no effect on patient volumes anticipated • Relatively modest affec
Slide 10: Bipartisan Support for Balanced Health Care System
BIPARTISAN SUPPORT FOR For personal use only BALANCED HEALTH CARE SYSTEM • Australia’s balanced health care system is working and has bi-partisan support – “I believe the days of viewing the health system as a dichotomy between public and private provision are behind us”. – “The Rudd Labor Governmen
Slide 11: PHI Incentives Maintained
For personal use only PHI INCENTIVES MAINTAINED • Government is committed to maintaining key health insurance incentives “The Government will maintain the current system of incentives – the Rebate, Lifetime Health Cover and the Medicare Levy Surcharge…” (Minister for Health and Ageing Nicola Roxon,
Slide 12: 2008 Financial Year Highlights
2008 FINANCIAL YEAR For personal use only HIGHLIGHTS • Strong rise in Group core net profit, underpinned by solid organic Australian growth – Australian business achieved strong EBIT growth across all states – Core EPS growth of 11.8%, at higher end of guidance – Australian brownfields progressing w
Slide 13: Group Financial Performance
For personal use only GROUP FINANCIAL PERFORMANCE YEAR ENDED 30 JUNE 2008 2007 % Inc $m $m Continuing Operations Australia & UK Group Group Indonesia Operating Revenue 2,289.2 384.5 2,673.7 2,099.1 27.4% EBITDAR* 327.1 87.5 414.6 294.1 40.9% EBITDA 303.4 37.8 341.3 272.1 25.4% EBIT 234.7 19.9 254.7
Slide 14: Financial Performance Australia & Indonesia
FINANCIAL PERFORMANCE For personal use only AUSTRALIA & INDONESIA YEAR ENDED 30 JUNE 2008 2007 % Inc Continuing Operations $m $m Operating Revenue 2,289.2 2,099.0 9.1% EBITDAR 327.1 294.1 11.2% EBITDA 303.4 272.1 11.5% EBIT 234.7 211.5 11.0% EBITDAR MARGIN (%) 14.3% 14.0% EBITDA MARGIN (%) 13.3% 13.
Slide 15: Brownfields Progress – Australia
BROWNFIELDS PROGRESS – For personal use only AUSTRALIA • Ramsay has committed and approved $550M for expansion projects in Australia. Approx 35% already spent • Key projects include: Hospital Project Hollywood (Perth) 4 theatres, additional 84 beds, extra consulting suites, expansion of day surgery
Slide 16: Brownfields Progress – UK
For personal use only BROWNFIELDS PROGRESS – UK • Increasing NHS demand driving significant investment in capacity expansion at hospitals – Capex of £28M approved to be spent over FY09 and FY10 – Will provide 17% increase in hospital operating capacity through theatre expansion – Target ROI of at le
Slide 17: Update Ramsay UK
For personal use only UPDATE RAMSAY UK • Ramsay UK continues to perform strongly – Strong rise in NHS activity both at private hospitals and Independent Sector Treatment Centres (ISTCs) for July- September over prior year – Patient choice to be enshrined in legislation – Ramsay UK is the leading pla
Slide 18: Update Ramsay UK
UPDATE RAMSAY UK For personal use only The running rate of CAB appointments has increased by approx. 170% from January to September 2008 18
Slide 19: Outlook
For personal use only OUTLOOK • Ramsay well positioned in current climate of economic uncertainty • Strong industry fundamentals to underpin future growth • Ramsay UK on track to be EPS accretive in FY09, as previously forecast • Ramsay on track for core EPS growth of 10% to 12% for the total Group
Slide 20: Questions
For personal use only QUESTIONS
Ramsay Health Care — UBS Australian Healthcare Conference 2008 on 6ix