Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Investor Presentation (December 2000)
17 slides from Ramsay Health Care's investor presentation, Dec 7, 2000
Slide 1: Presentation to Institutional Lunch 7 December 2000
Presentation to Institutional Lunch 7 December 2000
Slide 2: Environmental Change
Environmental Change ! Significant and sustainable change for the better ! 2.1 million additional Health Fund members in the past 12 months ! 50% increase in Health Fund membership ! $1.6 billion additional premiums ! Health Funds responding more rationally to the better providers ! Rationalisation
Slide 3: Sustainability
Sustainability ! Bipartisan support ! Greater acceptance of the need for health insurance ! Fewer hospital beds ! Shortage of quality, hi-tech, beds ! Greater strength of well positioned hospitals RAMSAY HEALTH CARE LIMITED
Slide 4: Health Fund - Hospital Negotiations
Health Fund - Hospital Negotiations ! Shift of the balance of power – For strategically well positioned hospital groups – Use of costing models – Shortage of quality beds ! Greater leadership of hospital industry – Willingness to walk away from contracting – Starting to set the agenda for the good o
Slide 5: Key Objectives of FY2001
Key Objectives of FY2001 ! Significantly improve profit ! Solve performance of co-located hospitals RAMSAY HEALTH CARE LIMITED
Slide 6: Current Trading Conditions
Current Trading Conditions 1st Quarter ! Significant profit improvement ! EBIT and NPAT – Ahead of budget – Significantly ahead of last year ! Sale of Flinders Private Hospital completed on 30 November 2000 ! Negotiated major increases in reimbursement rates for North Shore Private Hospital RAMSAY H
Slide 7: Current Trading Conditions (continued)
Current Trading Conditions 1st Quarter (continued) ! Mildura Base Hospital – Successfully opened – Very different to La Trobe RAMSAY HEALTH CARE LIMITED
Slide 8: Current Trading
Current Trading 3 Months ended 30 September 2000 Last Year This Year Increase $M $M % Revenue 82.0 90.7 11% EBIT 8.6 9.6 12% NPAT 2.7 3.5 30% Occupancy 77.5% 82.4% 6% RAMSAY HEALTH CARE LIMITED
Slide 9: North Shore Private
North Shore Private ! Improved Health Fund reimbursement ! High occupancy - better utilisation ! Continued efficiencies RAMSAY HEALTH CARE LIMITED
Slide 10: Sale of Flinders Private Hospital - Rationale
Sale of Flinders Private Hospital Rationale ! Profitability has been slower to emerge than anticipated due to – Competing doctor allegiances – Slow to achieve market position – Health Fund strength RAMSAY HEALTH CARE LIMITED
Slide 11: Sale of Flinders Private Hospital - Financial Details
Sale of Flinders Private Hospital Financial Details ! Sale consisted of two components – Sale of shares in owner vehicle – Assignment and novation of hospital management agreement by operator vehicle ! Sale Price $41.7M ! Consideration was assumption of net debt of $41.7M by purchaser RAMSAY HEALTH
Slide 12: Sale of Flinders Private Hospital - Financial Details (continued)
Sale of Flinders Private Hospital Financial Details (continued) ! Consideration $M Gross Debt Assumed 51.0 Less payment to purchaser in respect of assignment and novation of Hospital Management Agreement ($7.3M deferred payments to August 2002) (9.3) 41.7 ! Sale price approximates book value ! No si
Slide 13: Sale of Flinders Private Hospital - Impact of Sale
Sale of Flinders Private Hospital Impact of Sale ! Free up resources – Management – Financial ! Improve Group profitability going forward ! Improved gearing RAMSAY HEALTH CARE LIMITED
Slide 14: Financial Impact of Flinders on Group Result
Financial Impact of Flinders on Group Result RHC Ltd Flinders RHC Ltd Group as FY2000 Proforma Reported FY2000 FY2000 (excl. Flinders) $M $M $M Operating Revenue 328.2 21.9 306.3 EBITDA 51.6 0.1 51.5 Depreciation (20.8) (3.6) (17.2) EBIT 30.8 (3.5) 34.3 Interest (20.8) (5.0) (15.8) Profit before tax
Slide 15: Differentiation of Ramsay Health Care
Differentiation of Ramsay Health Care ! Continuing strong performance for existing hospitals ! Additional services where there is good return ! Large improvement in North Shore Private ! 50% Health Fund 50% DVA funding ! Sustainable strength in Health Fund partnership ! Strength of well-positioned h
Slide 16: Ramsay Health Care Outlook
Ramsay Health Care Outlook ! Continuing management focus on – Improving profitability of hospitals – Mildura Base Hospital – Operating efficiencies ! Targeting capital expenditure to areas of higher return ! Forecasting significant profit improvement for FY2001 RAMSAY HEALTH CARE LIMITED
Slide 17: Presentation to Institutional Lunch 7 December 2000
Presentation to Institutional Lunch 7 December 2000
Ramsay Health Care — Investor Presentation (December 2000) on 6ix