Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Investor Day (December 2021)
49 slides from Ramsay Health Care's investor day presentation, Dec 13, 2021
Slide 1: ASX Announcement: Investor Briefing Session 2
ASX ANNOUNCEMENT 13th December 2021 Ramsay Health Care (ASX: RHC) (Ramsay) is hosting the second of two virtual investor briefings For personal use only today, 13th December 2021. Enclosed is the presentation to be given at the briefing, which will commence at 5:00pm (Australian Eastern Standard Tim
Slide 2: Ramsay Health Care Investor Briefings Session 2 – Europe and the UK
For personal use only Ramsay Health Care Investor Briefings Session 2 – Europe and the UK December 2021 ramsayhealth.com
Slide 3: Important Information
IMPORTANT INFORMATION This document has been prepared by Ramsay Générale de Santé SA (the “Company”) and is being furnished solely for your information and personal use. For personal use only This presentation includes only summary information and does not purport to be comprehensive. The informatio
Slide 4: Agenda
Ramsay Santé Sydney: 5.00 – 5:40pm Agenda For personal use only Pascal Roché – CEO Ramsay Santé London: 6.00 – 6:40am France: 7.00 – 7:40am Monday 13th December Sydney: 5:40 – 6:20pm Ramsay UK Dr. Andrew Jones – CEO Ramsay UK London: 6:40 – 7:20am France: 7:40 – 8:20am Craig McNally – Managing Direc
Slide 5: Ramsay Santé – CEO Pascal Roché
For personal use only Ramsay Santé CEO Pascal Roché ramsayhealth.com
Slide 6: Introduction – Ramsay Santé Ownership Structure
For personal use only INTRODUCTION - RAMSAY SANTÉ OWNERSHIP STRUCTURE Ramsay Santé has 2 main shareholders: €4.023 billion Ramsay Health Care (52.5%) Annual turnover as at 30.06.2021 Prédica (39.6%), a subsidiary of Crédit Agricole specialising in insurance Sydney: 5:40 – 6:20pm London: 6:40 – 7
Slide 7: Ramsay Santé in 2021: A Leader in Integrated Care in Europe
For personal use only RAMSAY SANTÉ IN 2021: A LEADER IN INTEGRATED CARE IN EUROPE Leading position in our markets A strong healthcare footprint in Europe A modern, quality focused provider 230 hospitals €900m CAPEX FY17 – FY21 #1 #1 160 primary care centres 13 robots 100% of our facilities
Slide 8: Undisputed Leading Position in Key Strategic Markets
…WITH AN UNDISPUTED LEADING POSITION IN KEY STRATEGIC MARKETS Revenue split per geography1 Our Facilities in Europe For personal use only Sydney: 5:40 – 6:20pm London: 6:40 – 7:20am France: 7:40 – 8:20am Sydney: 6:20 – 7pm London: 7:20 – 8am France: 8:20 – 9am 1. FY21; Germany is excluded as the fac
Slide 9: Development Strategy Balancing and Diversifying Our Profile
OUR DEVELOPMENT STRATEGY HAS BEEN INSTRUMENTAL IN BALANCING AND DIVERSIFYING OUR PROFILE IN TERMS OF ACTIVITIES, CARE SETTINGS AND PAYOR MIX For personal use only A progressive diversification of our care settings An extended footprint across care value chain Activity by type of care settings Revenu
Slide 10: COVID Crisis Accelerated Existing Trends
COVID CRISIS HAS LARGELY CONTRIBUTED TO THE ACCELERATION OF TRENDS THAT ALREADY EXISTED For personal use only Macroeconomic Funding / Payors Case mix • Inflation rates increasing • Nordics: • Important and accelerated shift towards • Increased healthcare funding as share of total ambulatory care pos
Slide 11: Dynamic Healthcare Markets with Strong Fundamentals
WE OPERATE IN DYNAMIC HEALTHCARE MARKETS WITH STRONG FUNDAMENTALS France Sweden Norway Denmark For personal use only Market size Healthcare spend as % of GDP 11.3% +2.1% 10.9% +0.0% 10.5% +4.4% 10% -0.7% and growth vs 2018 Private sector market share for healthcare 67% 85% 85% 85% provision 23% 23%
Slide 12: State-of-the-Art Facilities Through Investment and Innovation
STATE-OF-THE-ART FACILITIES THANKS TO A SUSTAINED INVESTMENT AND INNOVATION POLICY Construction of new facilities Modernisation of existing buildings For personal use only Sydney: 5:40 – 6:20pm Clinique La Croix du Sud in Toulouse London: 6:40Göran’s Extension of Saint – 7:20am Hospital (Stockholm,
Slide 13: Successfully Refinanced Debt with Sustainability Targets
WE HAVE SUCCESSFULLY REFINANCED OUR DEBT AND ALIGNED OUR FINANCING STRATEGY WITH OUR MISSION AND VALUES BY INCLUDING SUSTAINABILITY TARGETS For personal use only our new debt, with much improved terms and conditions Term Loan1 Term Loan 2 Capex/ Acquistion & RCF Oversubscribed twice Maturity April 2
Slide 14: Acknowledged as Unique Trusted Partner Through COVID Care
WE HAVE BEEN ACKNOWLEDGED AS A UNIQUE TRUSTED PARTNER TO OUR INSTITUTIONAL PARTIES AND COMMUNITY THANKS TO OUR CONTRIBUTION TO COVID CARE For personal use only Ramsay Santé has been a key contributor in managing COVID within the private hospital sector More than 17,000 patients(1) treated in RS faci
Slide 15: COVID Crisis Not Over; Fifth Wave
COVID CRISIS IS NOT OVER AND OUR OPERATING COUNTRIES ARE CURRENTLY FACING A FIFTH WAVE For personal use only A huge increase of daily new cases over the past weeks Worrying perspectives for healthcare systems # daily new cases as at December 9th We are already facing increasing pressure on healthc
Slide 16: Positive Regulatory Developments for Private Providers in France
POSITIVE REGULATORY DEVELOPMENTS FOR PRIVATE PROVIDERS IN FRANCE… For personal use only Multi-year visibility on tariffs Positive tariffs expected for 2022 Minimum tariffs at +0.2% per year for 2020, 2021, 2022 Annual growth in national hospital spending target increased at 2.4% p.a. for 2020 -
Slide 17: Trusted Partner Status Led to Positive Funding Outcomes
… TOGETHER WITH OUR “TRUSTED PARTNER” STATUS ALLOWED US TO OBTAIN POSITIVE OUTCOMES ON FUNDING AND BUSINESS ASPECTS For personal use only Extra-funding relating to COVID Favorable decisions for business development 1. REVENUE GUARANTEE SCHEME¹ 1. NEW AUTHORISATIONS OBTAINED Securing a minimum top li
Slide 18: Helping Compensate for Current Headwinds
…HELPING COMPENSATE FOR THE HEADWINDS WE ARE CURRENTLY FACING For personal use only A national issue in the post-COVID context: as of Sept. 2021, ~30k nurses Government plan with key positions are vacant in French hospitals measure being an historical Nurses shortage (~6% of global headcounts), espe
Slide 19: Acquisitions Drove Revenue and EBITDA Growth
ACQUISITIONS HAVE DRIVEN REVENUE AND EBITDA GROWTH, AND WE PROVED OUR RESILIENCE AND CAPACITY TO MAINTAIN PROFITABILITY DESPITE THE HEADWINDS IN RECENT YEARS For personal use only Revenues multiplied by 2.3 since 2014 (m€) And EBITDA is multiplied by 2.1 (m€) (1) Published figure Nov 18 - Capio 450
Slide 20: Improved Efficiency in French Core Hospital Business
IN FRANCE, WE IMPROVED EFFICIENCY WITHIN OUR CORE HOSPITAL BUSINESS AND WILL PURSUE OUR CONTINUOUS IMPROVEMENT JOURNEY The clustering of our assets to drive efficiency For personal use only and innovation Active development of outpatient care in France Ambulatory rate Outpatient +24 pts dedicated fa
Slide 21: Strong Assets Attracting Doctors and Patients
RAMSAY SANTÉ DEVELOPED STRONG ASSETS THAT HAVE BEEN KEY TO ATTRACTING DOCTORS AND PATIENTS Research and teaching Strong digital footprint For personal use only Strong digital development in 2021: 3,100 scientific publications between 2016 and 2021 • > 60k digital consultations / month • > 3,500 vide
Slide 22: 2025 Plan: Four Strategic Pillars and Seven Enablers
OUR 2025 PLAN , FULLY ALIGNED WITH RAMSAY HEALTH CARE VISION, IS BASED ON FOUR STRATEGIC PILLARS SUPPORTED BY SEVEN ENABLERS For personal use only Integrated digi-physical care to attract and retain patients in our system by designing coherent pathways One ambition Deliver advanced Become the Drive
Slide 23: Leveraging Local Core Competencies Across Geographies
AND LEVERAGE OUR LOCAL CORE COMPETENCIES TO SUPPORT DEVELOPMENT ACROSS GEOGRAPHIES Leader in Mental Health with 24 Maternity wards: leading wide comprehensive offering private player For personal use only Leading Imaging operator with Leader in primary care: >100 centres and 10% 88 heavy equipment u
Slide 24: Acquisition of Alles Lægehus in Denmark
AS AN EXAMPLE, THE RECENT ACQUISITION (OCTOBER 2021) OF ALLES LÆGEHUS, THE PRIMARY CARE LEADER IN DENMARK IS A DECISIVE STEP TOWARDS OUR AMBITION For personal use only 32 primary care clinics #1 primary care player in Denmark +3 to be signed in the coming months Opportunity to develop in Norway Sydn
Slide 25: Acquisition of Helsetelefonen Telehealth Provider
THE ACQUISITION OF HELSETELEFONEN, A LEADING NORWEGIAN PROVIDER OF TELEHEALTH SERVICES HAS STRONGLY REINFORCED OUR DIGITAL FRONT DOOR OFFERING For personal use only Helsetelefonen: the entry point into a seamless digi-physical integrated pathway Patients with a medical question or issue Service avai
Slide 26: From Digitalisation of Hospital Stays to a Digital Front Door
FROM DIGITALISATION OF HOSPITAL STAYS TO A DIGITAL FRONT DOOR ADDRESSING A WIDE RANGE OF CONSUMERS WITH POTENTIAL FOR ADDITIONAL REVENUES For personal use only Over 1 million patients already experienced Ramsay Services Consumer / Patient Prevention Hospital care Home care services journey experienc
Slide 27: Continued Investment to Implement the 2025 Strategic Plan
WE WILL KEEP ON INVESTING IN ORDER TO STRENGTHEN OUR BUSINESS AS USUAL AND IMPLEMENT OUR 2025 STRATEGIC PLAN EXAMPLES OF KEY PROJECTS IN THE PORTFOLIO. A SIGNIFICANT INVESTMENT IS BEING ALLOCATED TO THE CREATION For personal use only OF CLUSTERS OFFERING FURTHER DEVELOPMENT, ENHANCING THE ATTRACTION
Slide 28: Unique Integrated and Differentiated Health Care Operator in Europe
FINALLY, WE ARE A UNIQUE INTEGRATED AND DIFFERENTIATED HEALTH CARE OPERATOR IN EUROPE WITH PROFITABLE GROWTH AVENUES For personal use only MARKET PATIENT QUALITY EFFICIENCY Strong underlying New patient segments to Best-in-class in the Continuous medical plans organic growth in the enter int
Slide 29: Ramsay Health Care UK – CEO Dr. Andy Jones
For personal use only Ramsay Health Care UK CEO UK Dr. Andy Jones ramsayhealth.com
Slide 30: Important Information
Important Information For personal use only The following applies to this presentation, including the slides, the information contained in the slides, any question and answer session and the oral presentation of the slides (together, the "Presentation"). This Presentation contains general background
Slide 31: Healthcare Market Overview
Healthcare Market Overview • Western governments’ spending on health as a share of GDP has For personal use only increased over time - £6.4 trillion global health spend, up 3.6% CAGR since 2010. • Impact of COVID has resulted in an increase in health expenditure, particularly as a share of GDP. • In
Slide 32: Operating Environment
Operating Environment • Ageing population continues to drive demand. For personal use only • Patients looking for safe environments in which to receive treatment. • Self pay demand predicted to grow as waiting lists and times increase. 24% 26% 20.4 • Insurers competing for digital and directional bo
Slide 33: NHS Funding & H2 Plan
NHS Funding & H2 Plan • NHS funding increased by £33.9bn by 2023/24 as part of the NHS Long For personal use only Term Plan. • Additional COVID funding of c£12bn per year over three years to be invested in frontline health and social care across the UK. • Over next six months £5.4bn has been pledged
Slide 34: Elective Recovery
Elective Recovery • Total number of patients waiting for consultant-led elective For personal use only treatment is now over 5.7 million, with over 300,000 people waiting for more than 1 year for treatment. • The Institute for Fiscal Studies has warned that waiting lists will be on an ever-rising tr
Slide 35: Response to COVID
Response to COVID Ramsay Health Care UK has provided an outstanding response to COVID, For personal use only and our support to the NHS has been invaluable. We provided: • Over 1,000 beds and 100 operating theatres made available across 33 Ramsay Hospitals • Performed over 50 new procedures includin
Slide 36: Focus of Financial Performance FY22
Focus of Financial Performance FY22 Results overview For personal use only • Year to date revenues are in excess of FY19, despite the disruption caused by COVID • Outpatient visits in excess of FY19 with an increased percentage now taking place virtually • Short range disruption and challenges in th
Slide 37: Organic Growth: Growing, Modernising and Leveraging Hospital Network
Organic Growth growing, modernising and leveraging our World Since 2019 Class Hospital Network For personal use only £110m capex Rolling upgrade to investment, including front of house diagnostic imaging facilities 30 Inpatient Beds £20m investment in digital 20 Daycase Bays capabilities 4 CT scanne
Slide 38: Strategic Expansion: New Day Case Units
growing, modernising and leveraging our World Strategic Expansion Class Hospital Network For personal use only Three new day case units have been opened during the past year as part of our hub & spoke model: • Beacon Park Hospital, Stafford • Stourside Hospital, Stourbridge • Buckshaw Hospital, Chor
Slide 39: New & Adjacent Services: Diagnostics and Cancer Services
New & moving purposefully into Adjacent Services New & Adjacent Services For personal use only Diagnostics • Growth in diagnostics activity, revenues and EBIT • Investment of £12.5m in diagnostic modalities in the last year ranging from static and mobile MRI and CTs, digital x-ray, mammography and u
Slide 40: Integrated Patient-Centric Care
moving purposefully into Integrated Patient-centric Care New & Adjacent Services For personal use only • Deployment of Maxims electronic patient record across all Hospital sites. • The foundation which supports the delivery of Ramsay UK’s digital roadmap and future clinical interfaces. • Every touch
Slide 41: Operational Excellence: Evolve Framework
extracting the highest potential value by Operational Excellence Operational Excellence A key part of our strategy is to grow Ramsay by supporting our operations to become more innovative. For personal use only To that end, we have developed a framework to ensure we continually challenge ourselves t
Slide 42: Strategic Sourcing
extracting the highest potential value by Strategic Sourcing Operational Excellence For personal use only • Annualised P&L savings. • Increased proportion of spend addressed. • Revised processes for tendering, contract management and inventory management. • Better visibility and engagement through b
Slide 43: Transformational Digital & Data Investment
reinforcing Ramsay’s Transformational Digital & Strong Organisational Foundations Data Investment For personal use only Cloud readiness and network transformation commenced Virtual consultation platform rolled out to all sites. Microsoft 365 Teams deployed and multi two factor authentication Electro
Slide 44: Gold Standard Clinical Care: Orthopaedics
Gold Standard Clinical Care reinforcing Ramsay’s Strong Organisational Foundations Orthopaedics Ramsay recognised by National Joint Registry (NJR) as a leading provider for For personal use only “Data Quality” in 2020 Over 430 “Private” orthopaedic consultants 92% diary access for orthopaedic consul
Slide 45: Gold Standard Clinical Care: Cancer
Gold Standard Clinical Care reinforcing Ramsay’s Strong Organisational Cancer Foundations • Opened third chemotherapy centre in November 2021 For personal use only • Continued investment in key diagnostic equipment to support the pathway, including 4 3D mammography and sentinel node biopsy • Support
Slide 46: Industry Leading Talent
reinforcing Ramsay’s Strong Organisational Industry Leading Talent Foundations For personal use only • People Plan enhanced to improve employee engagement. • Strengthened leadership team: Chief People Officer, Head of Pay & Reward and Head of Talent & Acquisition. • Stronger senior leadership team w
Slide 47: Disciplined Transformation
reinforcing Ramsay’s Strong Organisational Disciplined Transformation Foundations For personal use only Strategic Priorities Global Executive Board Strategy 2030 Strategy Transformation Strategic Initiatives UK Executive Board Plans Risk Board & Corporate Plan Capability Road Map Strategy SteerCo Go
Slide 48: Ramsay Cares
reinforcing Ramsay’s Strong Organisational Ramsay Cares Foundations For personal use only The Ramsay Way of people caring for Ramsay Health Care recognises that Our responsibility in the community people means patients, practitioners protecting the environment for future stretches beyond connecting
Slide 49: Question Time
For personal use only Question Time ramsayhealth.com