Rhon-klinikum Ag · XETR:RHK
Rhon-klinikum — Non-Deal Roadshow (August 2012)
24 slides from Rhon-klinikum's roadshow presentation, August 2012
Slide 1: RHÖN-KLINIKUM AG Roadshow Presentation
RHÖN-KLINIKUM AG Roadshow Presentation
Slide 2: RHÖN-KLINIKUM at a Glance
RHÖN-KLINIKUM at a Glance Germany’s first listed hospital operator § IPO in 1989 § The only publicly listed pure-play on the German acute-care hospital sector § 54 hospitals in 10 federal states, 43 locations § 40 MVZs with 191.5 specialist physician practices § More than 42,900 employees § Approx.
Slide 3: The RHÖN-KLINIKUM Business Model
The RHÖN-KLINIKUM Business Model Mission statement Business model A private hospital owner/operator committed to deliver § Acquisition of general hospitals of different sizes and § high-quality care levels from public institutions and private § patient-oriented owners, typically with so far § integr
Slide 4: RHÖN-KLINIKUM: Integrated Healthcare Provider
RHÖN-KLINIKUM: Integrated Healthcare Provider Knowledge transfer, virtual medical network Patient care adapted to individual situation University, Maximum and High Level Care Hospitals Specialized Clinics MVZ Basic and Standard Care Hospital Outpatient Inpatient External GPs, specialists, other hosp
Slide 5: Organic Growth: Driven by Two Megatrends
Organic Growth: Driven by Two Megatrends Age structure in Germany I. Changing Demographic Patterns § Rising life expectancy § Increase in proportion of elderly and multimorbid people - Today, 26% of the total population is older than 60 years Men Women - This share will increase to 32% in 2022 and t
Slide 6: Sustainable Growth: The German Hospital Market
Sustainable Growth: The German Hospital Market Total healthcare expenditure in Europe Acute care healthcare expenditure in Germany 13% 12.0% 11.8% 12% 11.6% 11.4% 11.0% 11% CAGR +3.0% % of GDP 10.0% 9.8% 10% 9.6% 9.5% 9.5% 9% CAGR +3.5% 8% 7% n UK ly ay ce ain ds y ia d e an lan Ita str rw an lan ed
Slide 7: RHÖN-KLINKUM: Focus on Acquisitions
RHÖN-KLINKUM: Focus on Acquisitions Acquisition history: Group revenues more than doubled since 2004 to € 2.63 bn in 2011 million € CAGR: + 14% (organic: + 4%) Year Number City 2800 2.630 2012 1 Wiesbaden 2600 2010 1 Bad Salzdetfurth 2400 2009 5 Burg, Neindorf, Anhalt-Zerbst, 2200 Vogelsang-Gommern,
Slide 8: Cross-sector Integration and Medical Clusters
Cross-sector Integration and Medical Clusters Closing Efficiency Gaps in the Value Chain comprehensive integration Outpatient Specialists, Rehab, Elderly Acute Care MVZs, Smaller Care, Nursing Hospitals in the Region Hospital Services Strategic focus of RHÖN-KLINIKUM No strategic focus of RHÖN-KLINI
Slide 9: RHÖN-KLINIKUM's Track Record
RHÖN-KLINIKUM’s Track Record Revenues (m€) Leverage (Net Debt / EBITDA) CAGR 6.7% EBITDA (m€) and Margin Net Operating Cash Flow (m€)** and Margin CAGR 7.9% CAGR 14.4% 12.3% 12.3% 12.2% 12.0% 12.8% 7.9% 10.3% 10.3% 9.5% 10.3% * * In 2011 EBITDA adjusted for ending particle therapy ** Cash generated
Slide 10: Strong Commitment to Shareholder Returns
Strong Commitment to Shareholder Returns Dividend per Share* (in €) CAGR 17% § Dividend of € 0.45 per share for FY 2011 0.45 § Based on EPS of € 1.13, this 0.37 implies a payout ratio of 0.30 approx. 40% 0.26 0.21 § Average annual dividend 0.19 increase of 17% 0.17 0.15 0.11 0.13 over the last ten y
Slide 11: RHÖN-KLINIKUM AG First Half Year Results 2012
RHÖN-KLINIKUM AG First Half Year Results 2012 9 August 2012 RHÖN-KLINIKUM AG - First half year results 2012 - as of 9 August 2012
Slide 12: Dominating Theme in Q2: Public Take-Over Offer by Fresenius
Dominating Theme in Q2: Public Take-Over Offer by Fresenius Offer failed with § Announcement on 26 April 2012, offer documents published on 18 May 2012 84.3 % acceptance § Statement of the Board of RHÖN-KLINIKUM on 28 May 2012, followed by level due to 90 % management roadshow: acceptance − The boar
Slide 13: H1 2012: Exceptionally Challenging Environment for our Operating Business
H1 2012: Exceptionally Challenging Environment for our Operating Business Margin pressure § Positive development in service volumes are “punished” with steep price discounts from regulatory on additional volumes – without corresponding relief for associated costs headwinds and wage increases § Wage
Slide 14: Strong Growth in Patient Numbers
Strong Growth in Patient Numbers Number of Patients Treated in H1 2012 (in thousands) +13.8% 1,300 650 +9.5% 646.6 1,250 +5.2% Incl. 32k HSK and 15k MVZ +85.6 1,256.5 à organic growth Q2 +5.4% 1,200 (+7.5%) 600 609.9 1,150 1,147.9 +23.0 579.6 575.7 (+2.0%) 568.3 1,100 550 553.6 1,050 HSK adds more t
Slide 15: Organic Revenue Growth Burdened by Remuneration Discounts
Organic Revenue Growth Burdened by Remuneration Discounts on Additional Volumes Group Revenues H1 2012 (in million €) 1,450 750 +7.1% +8.7% 1,400 1,390.3 +5.4% 1,350 700 +47.9 708.0 1,300 (+3.7%) 682.3 1,298.3 +44.1 670.8 650 660.0 1,250 (+3.4%) 647.2 651.1 1,200 600 1,150 1,100 550 Revenues Externa
Slide 16: P&L Key Figures H1 2012
P&L Key Figures H1 2012 Performance In addition to first-time consolidation of HSK H1 2012 vs. H1 2011 in million € § Base rate +1.3%, but additional volumes Revenue 1,390.3 100.0% +7.1% come with substantial price discounts Personnel expenses - 884.1 60.7% +9.9% § Slowdown in restructuring of perso
Slide 17: Cash Flow Analysis H1 2012
Cash Flow Analysis H1 2012 § Working capital increase based on increase of service volumes and thus Negative Free Cashflow of -38 m€ (-52 m€)* accounts receivable; payment of construction bills -70 (-78)* § Taxes of H1 2011 had included € 9.0 m +145 positive one-off (+162)* § Dividend € 0.45 per sha
Slide 18: Core Balance Sheet Figures as of 30.06.2012
Core Balance Sheet Figures as of 30.06.2012 € 3,335m € 3,335m Net debt increase based on € 1,569m 47% § Investments from own funds (€ 214.8m) € 2,388m Equity incl. € 146.6m for acquisitions 72% Non-current assets mainly for HSK € 875m § Dividends (€ 62.3m) Long-term debt 26% § Performance-linked sta
Slide 19: Adjusted Guidance 2012
Adjusted Guidance 2012 UKGM One-off costs directly Strong Margin Pressure Regulatory Relief FACTOR Setback and delay attributable to the §High wage increases Partial compensation for of restructuring Public Take-Over Offer §Regulated price discounts wage increases by Fresenius §Take-over attempt bur
Slide 20: Key Challenge for FY 2012: Re-Focusing on Creating Value from Core Business Model
Key Challenge for FY 2012: Re-Focusing on Creating Value from Core Business Model Stabilization of § Re-incentivize and strengthen commitment among our staff members for operating operational business, re-create reliability vis-à-vis all stakeholders business after take-over attempt § Further wage a
Slide 21: Appendix – Detailed Income Statement H1 2012
Appendix – Detailed Income Statement H1 2012 Income statement in EUR million H1 2012 H1 2011 Change Revenues 1,390.3 1,298.3 +7.1% Other operating income 104.1 7.5% 90.0 6.9% +15.6% 1,494.4 107.5% 0.0% 1,388.3 106.9% 0.0% +7.6% Cost of materials -364.5 26.2% -333.2 25.7% -9.4% Personnel expenses -84
Slide 22: Appendix – Detailed Cash Flow Statement H1 2012
Appendix – Detailed Cash Flow Statement H1 2012 Cash Flow Statement in EUR million H1 2012 H1 2011 Cash generated from operating earnings 143.8 161.6 Change in inventories 0.6 2.8 Change in accounts receivable -58.1 -18.5 Change in other financial assets and other assets -5.1 -7.1 Change in accounts
Slide 23: Appendix – Pricing Regulation 2012
Appendix – Pricing Regulation 2012 Total Hospital System Budget Federal § Wage sum increase for 2012: 1.98%, Average Base Rate Increase in States with RHÖN Hospitals Level 2010 reform leads to a 50 bps reduction for 2012 (weighted by RHÖN sales) Layer 1 à +1.48% as maximum for total base rates § € 2
Slide 24: Disclaimer
Disclaimer • This document has been prepared by RHÖN-KLINIKUM AG (“RHÖN-KLINIKUM” or “the Company”) for information purposes only, solely for the use at this presentation and must be treated confidentially by attendees at such presentation and must not be distributed, passed on or otherwise disclose