Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — UBS Australian Healthcare Conference 2012
23 slides from Ramsay Health Care's conference presentation, Jun 7, 2012
Slide 1: Ramsay Health Care – UBS Australian Healthcare Conference 2012
For personal use only Ramsay Health Care UBS Australian Healthcare Conference 2012 7 June 2012 Christopher Rex, Managing Director
Slide 2: Overview, Growth Story & Formula for Success
For personal use only Ramsay Health Care OVERVIEW, GROWTH STORY & FORMULA FOR SUCCESS 2
Slide 3: Ramsay Health Care – Overview
RAMSAY HEALTH CARE – OVERVIEW For personal use only Australia’s largest private hospital operator & growing global company − 117 hospitals & facilities across three continents; circa 10,000 beds − Over 30,000 staff: 22,000+ in Australia including 13,500 nursing staff, 650 doctors − 143 accredited
Slide 4: Operating Revenue
OPERATING REVENUE - Compound Annual Growth Rate (CAGR) For personal use only A$m 4.0 CAGR of 24.6% 3.5 Revenue Growth Achieved through 3.0 our consistent focused strategy 2.5 of: Estimate Organic growth 2.0 and 1.5 Brownfield capacity 1.0 expansion and 0.5 Acquisitions - 1998 1999 2000 2001 20
Slide 5: Core EPS
CORE EPS - Compound Annual Growth Rate (CAGR) For personal use only Cents per Share 120 CAGR of 16.4% 100 80 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Financial Year ended 30 June Core EPS CAGR, Core EPS 5
Slide 6: Delivering Strong Shareholder Returns
DELIVERING STRONG SHAREHOLDER RETURNS For personal use only Ramsay Total Shareholder Return (TSR) versus S&P/ASX 100 Accumulation Index (share price appreciation plus reinvestment of dividends) 28-May-12 1,893% Compound Annual Growth Rate (CAGR) Ramsay Health Care TSR 22.6% S&P/ASX 100 Acc. Index 7.
Slide 7: Ramsay Health Care Share Price July to May
RAMSAY HEALTH CARE Share Price 1 July 11 to 18 May 12 For personal use only Share Price $20.80 15.7% Share Price $17.97 S&P ASX100 Index 3749 3309 11.7% 7
Slide 8: Our Formula for Success
OUR FORMULA FOR SUCESS For personal use only Management and culture − Long term, stable management team, special culture (“The Ramsay Way”) − Ramsay can export proven management model and blend it with local expertise Strong growth strategy − Ramsay’s growth strategy has remained clear and consi
Slide 9: Ramsay Health Care in 2012
RAMSAY HEALTH CARE IN 2012 For personal use only Strong growth in our Australian business continues Operating leverage continues to drive margin growth Completed brownfield projects adding to EBIT & EPS PHI membership continues to grow, with approximately 50,000 people joining in the Dec qua
Slide 10: Ramsay Health Care in 2012 (cont)
RAMSAY HEALTH CARE IN 2012 (cont) For personal use only Construction of new Public/Private hybrid Sunshine Coast hospital commenced 1 Sept 2011 Continued growth in treating publicly funded patients in UK - NHS patients now represent 65% our UK admissions. Ramsay Santé (France) is performing to
Slide 11: Global Market Trends in Healthcare
For personal use only Industry Fundamentals GLOBAL MARKET TRENDS IN HEALTHCARE 11
Slide 12: Strong Global Industry Fundamentals
STRONG GLOBAL INDUSTRY FUNDAMENTALS For personal use only Demand for healthcare driven by: Ageing population (first of boomers turned 65 in 2010) Increasing chronic disease burden: − Coronary artery disease & heart failure − Diabetes − Obstructive pulmonary disease Higher patient expectations
Slide 13: An Ageing World
AN AGEING WORLD For personal use only Proportion of population aged 60 or over: World & Development Regions, 1950 - 2050 35% World 33% More Developed Regions 30% Less Developed Regions 27% 25% 22% 21% 20% 20% 15% 15% 15% 13% 12% 11% 10% 9% 8% 8% 6% 6% 5% 0% 1950 1975 2009 2025 2050 Source: UN Depart
Slide 14: How Health Spending Rises with Age
HOW HEALTH SPENDING RISES WITH AGE For personal use only Total healthcare spending per person, per annum ($) Share of average annual expenditures (%) Age-related spending is putting pressure on government budgets and boosting national debt levels. Source: US Bureau of Labor Statistics 14
Slide 15: Market Trends in Healthcare
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, looking to private sector for solutions Patients looking for & willing to pay for higher quality h
Slide 16: The Future
For personal use only Ramsay Health Care THE FUTURE 16
Slide 17: Successful & Sustainable Growth Strategy
SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY For personal use only Organic Public/Private Brownfields Acquisitions Collaborations • Underpinned by • Unmet demand • Potential for more • Exploring further demographics, driving Ramsay’s partnerships to acquisitions in quality portfolio of ongoing develop/m
Slide 18: Capacity to Fund Future Growth
CAPACITY TO FUND FUTURE GROWTH For personal use only Leverage = Net Debt ÷ EBITDA 6 Affinity Acquisition $1.4B New A$2 billion 5.1 5 equivalent underwritten Capio UK Acquisition £193M debt facility executed in 4 3.7 November 2011 3.3 Ramsay Santé Acquisition €87M 3 Significant headroom 2.7 2.7 2
Slide 19: Brownfield Developments Australia
BROWNFIELD DEVELOPMENTS AUSTRALIA For personal use only Proven track record of undertaking successful brownfield expansion Extensive program of hospital redevelopments & expansions currently underway (>$800 million approved since 2007) Expect ongoing investment of approx. $100 million pa Com
Slide 20: Public/Private Collaborations – Joondalup Health Campus
PUBLIC/PRIVATE COLLABORATIONS For personal use only Joondalup Health Campus: 500 bed public/private hospital expanding to 650 beds Largest hospital in Perth’s Northern corridor Agreement with WA government Treated public & private patients since 1996 In 2011 – 81,500 ED admissions; 18,500
Slide 21: Public/Private Collaborations – Sunshine Coast
PUBLIC/PRIVATE COLLABORATIONS For personal use only Sunshine Coast: Public/Private hospital in partnership with Queensland Health 200 beds; 8 theatres; day centre; day chemo; ICU Construction commenced 1 Sep 2011 Completion: Dec 2013 21
Slide 22: Outlook
OUTLOOK For personal use only Rising demand for health care driving substantial ongoing investment in brownfield projects Completed brownfield projects adding to earnings at EBIT and EPS level Economic conditions in the UK and France remain challenging but health care sector remains stable wit
Slide 23: Questions
For personal use only QUESTIONS
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