Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Non-Deal Roadshow (December 2012)
42 slides from Ramsay Health Care's roadshow presentation, Dec 4, 2012
Slide 1: Ramsay Health Care Limited Asian Briefing – December 2012
For personal use only Ramsay Health Care Limited Asian Briefing – December 2012 Christopher Rex, Managing Director Bruce Soden, Chief Financial Officer
Slide 2: Agenda
AGENDA For personal use only 1. Ramsay Health Care – Overview – Growth Story – Formula for Success – Global Market Trends 2. Australia – Strong Healthcare Industry Fundamentals – Ramsay in Australia 3. International Operations – United Kingdom – France – Indonesia 4. Outlook 5. Appendix 2
Slide 3: Growth Story & Formula for Success
Ramsay Health Care Limited Growth Story & Formula for Success gee
Slide 4: Ramsay Health Care - Overview
Ramsay Health Care - Overview For personal use only • Australia’s largest private hospital operator & growing global company • Established in Sydney in 1964 by Mr Paul Ramsay • 48 years in the private hospital industry – long term commitment • Listed on Australian Securities Exchange (ASX) in 1997 •
Slide 5: Ramsay Health Care - Today
Ramsay Health Care - Today For personal use only • One of the largest & most successful private hospital operators in the world: – Operating 116 hospitals & facilities across 4 countries – 10,000 beds – 30,000 staff – Treating over 1 million patients per annum – Extensive education & training, inclu
Slide 6: Delivering Strong Shareholder Returns
Delivering Strong Shareholder Returns For personal use only Ramsay Total Shareholder Return versus S&P/ASX 100 Accumulation Index (share price appreciation plus reinvestment of dividends) 27-Nov-12 2,363% Ramsay TSR Compound Annual Growth Rate (CAGR) 23.8% S&P/ASX 100 Accumulation Index (CAGR) 7.5%
Slide 7: Operating Revenue - Compound Annual Growth Rate
Operating Revenue - Compound Annual Growth Rate (CAGR) For personal use only A$m 4,500 CAGR of 23.2% 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Financial Year ending 30 June Operating Revenue CAGR, Operating Revenue 7
Slide 8: Core Earnings Per Share - Compound Annual Growth Rate
Core Earnings Per Share - Compound Annual Growth Rate (CAGR) For personal use only ¢/share 140.0 CAGR of 16.3% 120.0 100.0 80.0 60.0 40.0 20.0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Financial Year ending 30 June Core EPS CAGR, Core EPS 8
Slide 9: Dividends - Compound Annual Growth Rate
Dividends - Compound Annual Growth Rate (CAGR) For personal use only ¢/share 70.0 CAGR of 16.1% 60.0 50.0 40.0 30.0 20.0 10.0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Financial Year ending 30 June Dividends CAGR, Dividends 9
Slide 10: Geographical Segments
Geographical Segments For personal use only Operating Revenue EBITDAR* 80% 74% 20% 14% 6% 6% Australia/Indonesia Australia/Indonesia United Kingdom United Kingdom France France * EBITDAR (Earnings Before Interest, Tax, Depreciation, Amortisation & Rent) is the most comparable indicator as most UK &
Slide 11: Financial Highlights FY 2012
Financial Highlights FY 2012 For personal use only • Group Revenue – $3.9 billion 6.4% • Group EBIT – $438.8 million 10.9% • Core NPAT – $252.6 million 14.5% • Reported NPAT – $244.1 million 23.0% • Core EPS – 116.1 cents/share 14.8% • Full Year Dividend – 60.0 cents/share 15.4% (fully franked) Note
Slide 12: Geographical Segments – EBITDAR Margins
Geographical Segments – EBITDAR Margins For personal use only Financial Year ended 30 June 2012 Australia Indonesia UK France Group (Millions) AUD ($M) IDR (RpB) GBP (£M) EUR (€M) AUD ($M) Operating 3,113.6 603.6 363.8 169.2 3,956.5 Revenue EBITDAR(1) 501.0 100.4 91.0 30.0 690.2 EBITDAR(1) 16.1% 16.
Slide 13: Our Formula for Success
Our Formula for Success 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 cons
Slide 14: Global Market Trends in Healthcare
Global 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 • Patients looking for & willing to pay for higher quality healthcare • Increasing GDP & affor
Slide 15: Strong Growth Strategy
Strong Growth Strategy For personal use only Underpinned by a sustained period of an ageing population Brownfield Public/Private Organic Capacity Acquisitions Collaborations Expansion Underpinned by Unmet demand Potential for more Exploring further demographics, driving Ramsay’s partnerships to acqu
Slide 16: Leverage & Cash Management
Leverage & Cash Management For personal use only Leverage* Cash Flow 6x Affinity Acquisition $1.4B $m 5.1 5x 650 Capio UK Acquisition £193M 4x 3.7 550 3.3 Ramsay Santé Acquisition €87M 450 3x 2.7 2.7 2.4 1.9 350 2x FY 2011 FY2012 1.5 Gross Operating Cash Flow 1x EBITDA FY05 FY06 FY07 FY08 FY09 FY10
Slide 17: Committed Funding for Future Growth
Committed Funding for Future Growth For personal use only • In November 2011, a new senior debt facility was executed and subsequently successfully syndicated to a group of strong banks • The new A$2 billion, equivalent, facility has: – A$, £ & € tranches – Competitive pricing & improved terms – 3 &
Slide 18: Australia: Strong Healthcare Industry Fundamentals
Australia Strong Healthcare Industry Fundamentals ee
Slide 19: Australian Healthcare Industry Dynamics
Australian Healthcare Industry Dynamics For personal use only • A balanced health care system – Government has encouraged the private hospital industry to work alongside the public system – Bipartisan support • Participation in private health insurance is encouraged by – A federal government income
Slide 20: Private Hospitals in Australia
Private Hospitals in Australia For personal use only • The private hospital sector is a significant part of the total hospital landscape, with private hospitals treating 41% of all hospital patients • Positive demographics will continue to drive hospital utilisation • Impact of proposed changes to P
Slide 21: Ramsay Health Care in Australia
Ramsay Health Care in Australia For personal use only • Australia’s largest private hospital operator, with 66 hospitals and approximately 7,500 licensed beds – representing 27% of all private hospital beds • Ramsay predominantly operates acute medical & surgical hospitals, including 3 public hospit
Slide 22: Brownfield (Capacity Expansion) Developments
Brownfield (Capacity Expansion) Developments For personal use only • Proven track record of undertaking successful brownfield expansion • Extensive programme of hospital redevelopments & expansions currently underway • During FY2012 $103 million new brownfield developments approved • Projected ongoi
Slide 23: Experience with Privatisations
Experience with Privatisations For personal use only • Ramsay has extensive experience in successful transition from government-owned to private: – Hollywood, WA – Greenslopes, Qld – Mildura, Vic – Joondalup, WA – Noosa, Qld • Construction of new hybrid Public/Private Sunshine Coast hospital in Quee
Slide 24: Public/Private Collaborations
Public/Private Collaborations For personal use only Sunshine Coast University Private Hospital: – Public/Private hospital in partnership with Queensland Health – 5 year contract – Completion scheduled for Dec 2013 – 200 Bed hospital 24
Slide 25: International operations
International operations United Kingdom, France, Indonesia Lg
Slide 26: Operating Environment – United Kingdom
Operating Environment – United Kingdom For personal use only • EBITDAR up 2.1% to £91.0 million despite having to digest the expected change in pricing of the ISTC contract revenue • NHS admissions up 11.3% - now comprise more than 65% of total Ramsay UK admissions • EBITDAR margins remain strong at
Slide 27: Operating Environment - France
Operating Environment - France For personal use only • Modest growth in revenue • EBITDAR margin remaining strong at 17.8% • Positive demographics will continue to drive hospital utilisation • Continued operational improvements will position the business better for the future • Given the general ope
Slide 28: Operating Environment – Indonesia
Operating Environment – Indonesia For personal use only • Strong revenue growth in FY 2012 • Continued opportunity to grow • 4th most populous country in the world – 230 million people • Ageing and increasingly affluent population • Increasing sophistication of medical market • Ramsay facilities set
Slide 29: Outlook
Ramsay Health Care Limited Outlook
Slide 30: Outlook
Outlook For personal use only • Completed brownfield projects adding to earnings at EBIT & EPS level – ongoing investment in brownfields at least $100 million per annum • UK business well placed to capture further growth in NHS volumes • Continue to investigate acquisition opportunities in existing
Slide 31: Appendix
For personal use only Appendix
Slide 32: Ramsay in Australia & Indonesia
Ramsay in Australia & Indonesia For personal use only Australia: • 66 Hospitals – 27 in NSW – 16 in Vic – 16 in Qld – 4 in WA – 3 in SA • Largest private hospital group Indonesia: • 3 Hospitals A1
Slide 33: Ramsay In United Kingdom
Ramsay In United Kingdom For personal use only England: • 38 hospitals & day surgery facilities • 4th largest hospital operator A2
Slide 34: Ramsay in United Kingdom / Ramsay Santé
Ramsay in United Kingdom Ramsay Santé For personal use only La France: England – •• 9 38hospitals hospitals & day surgery facilities •• 2 nd largest private 4th largest hospital operator hospital group in the Paris region (9 hospitals) A3
Slide 35: Our Successful Culture
Our Successful Culture For personal use only Ramsay Health Care is committed to ensuring that: – We are a people business – We have a strong and vibrant operating culture – ‘The Ramsay Way’ – We have excellent patient outcomes – We have excellent staff safety – We are a company that people want to w
Slide 36: Share Register Analysis
Share Register Analysis For personal use only Percentage Shareholding Paul Ramsay Holdings Pty Limited 36% Australian Institutions 29% Offshore Institutions 15% Retail 20% 100% Total shares on issue 202 million A5
Slide 37: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only YEAR ENDED 30 JUNE 2012 2011 Increase $m $m % Revenue 3,956.5 3,719.7 6.4% EBITDA 583.5 526.3 10.9% EBIT 438.8 395.5 10.9% Core NPAT (1) 252.6 220.6 14.5% Core EPS (2) (cents per share) 116.1¢ 101.1¢ 14.8% Final Dividend – Fully Franked (cents per sh
Slide 38: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only YEAR ENDED 30 JUNE 2012 2011 Increase $m $m Core NPAT 252.6 220.6 14.5% Non-core items (net of tax)(1) (8.5) (22.2) Reported Net Profit after tax 244.1 198.4 23.0% (1) Non-core items 2012 2011 $m $m Deferred annual non-cash rent expense relatin
Slide 39: Group Financial Highlights - FY2009 To FY2012
Group Financial Highlights - FY2009 To FY2012 For personal use only Group EBITDA up ↑10.9% Group NPAT up ↑14.5% 2009 2010 2011 2012 2009 2010 2011 2012 Group Core EPS up ↑14.8% Total Dividend up ↑15.4% 2009 2010 2011 2012 2009 2010 2011 2012 A8
Slide 40: Private Healthcare in Australia
Private Healthcare in Australia For personal use only In FY 2011 private hospitals: • Treated 41% of all hospital patients (3.6 million) • Provided 33% of all hospital beds • Performed 66% of all elective surgery • Of the 664 DRG’s undertaken in Australian public hospitals, 660 were performed in pri
Slide 41: Public/Private Collaborations
Public/Private Collaborations For personal use only Joondalup Health Campus, Perth: – Public/Private hospital in partnership with WA Health – Staged opening – Completion scheduled for mid 2013 A 10
Slide 42: Joondalup Health Campus
Joondalup Health Campus For personal use only • 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 operations; 2600 deliveries • $
Ramsay Health Care — Non-Deal Roadshow (December 2012) on 6ix