Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (February 2016)
34 slides from Ramsay Health Care's shareholder meeting presentation, Feb 11, 2016
Slide 1: Christopher Rex – Managing Director
Christopher Rex – Managing Director 15 November 2012
Slide 2: Agenda
Agenda • Overview • FY2012 Highlights • Operating Environment • Balance Sheet • Development Update • Formula for Success • Outlook 2
Slide 3: Overview
Ramsay Health Care Overview RHC Annual General Meeting 2012
Slide 4: Ramsay Health Care Overview
Ramsay Health Care Overview • Global hospital operator • Operating 116 hospitals & facilities across four countries • 10,000 beds • 30,000 staff • Treating over 1 million patients per annum • Revenue running at over $4 billion • Market capitalisation approximately $5 billion • Enterprise value appro
Slide 5: Delivering Strong Shareholder Returns
Delivering Strong Shareholder Returns Ramsay Total Shareholder Return versus S&P/ASX 100 Accumulation Index (share price appreciation plus reinvestment of dividends) 28-Sep-12 2,170% Ramsay TSR Compound Annual Growth Rate (CAGR) 23.1% S&P/ASX 100 Accumulation Index (CAGR) 7.6% 28-Sep-12 201% Source:
Slide 6: FY2012 Highlights
Ramsay Health Care FY2012 Highlights RHC Annual General Meeting 2012 : 4 th
Slide 7: Financial Highlights FY2012
Financial Highlights FY2012 • 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) 7
Slide 8: Geographical Segments
Geographical Segments 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 & French hospitals are leas
Slide 9: Operational Highlights
Operational Highlights • Strong growth across the portfolio continues • Operating leverage continues to drive margin growth • Completed brownfield developments adding to EBIT and EPS • Successful refinancing of debt facility in November 2011 • $103 million approved for new brownfield developments du
Slide 10: Safety, Quality & Corporate Responsibility Highlights
Safety, Quality & Corporate Responsibility Highlights • Performed better than industry benchmarks in all key patient safety and quality indicators • Rate of lost time workplace injury is half the industry rate • Leader in nursing and medical training in the private sector • Recorded reduction in ene
Slide 11: Operating Environment
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Slide 12: Operating Environment - Australia
Operating Environment - Australia • Positive demographics will continue to drive hospital utilisation • As at 30 June 2012, 46.8% of the population (10.59m) hold private hospital treatment insurance • An additional 132,000 people joined PHI in the June quarter • Impact of proposed changes to PHI reb
Slide 13: Operating Environment – Indonesia
Operating Environment – Indonesia • 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 setting high standards (R
Slide 14: Operating Environment – United Kingdom
Operating Environment – United Kingdom • 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 25% despite the major
Slide 15: Operating Environment - France
Operating Environment - France • Modest growth in revenue and EBITDAR with margins remaining strong • Positive demographics will continue to drive hospital utilisation • Continued operational improvements will position the business better for the future • Given the general operating conditions in Fr
Slide 16: Balance Sheet
Ramsay Health Care Balance Sheet RHC Annual! General Meeting 2012
Slide 17: Leverage & Cash Flow
Leverage & Cash Flow 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 FY11 FY'12 * Leverage = Net
Slide 18: Committed Funding for Future Growth
Committed Funding for Future Growth • 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 & 5 year tranches • The
Slide 19: Development Update
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Slide 20: Brownfield Developments
Brownfield Developments • 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 ongoing investment of at least $100 million pa t
Slide 21: Completed Brownfield Projects FY2012
Completed Brownfield Projects FY2012 St Andrews Private Hospital, Ipswich: $8.7 million • Operating theatre expansion including new operating theatres & day surgery 21
Slide 22: Completed Brownfield Projects FY2012
Completed Brownfield Projects FY2012 Mt Wilga Private Hospital, North Sydney: $11.8 million • 39 new private beds • New therapy areas • New gymnasium Warners Bay Private Hospital, Newcastle: $3.7 million • 11 new private beds; • Hydrotherapy pool 22
Slide 23: Brownfield Projects Under Construction
Brownfield Projects Under Construction Greenslopes Private Hospital, Brisbane: $47 million Introduction of maternity services 74 new private beds 4 operating theatres & 4 birthing suites Completion: mid 2013 When completed, Greenslopes Private Hospital will have 644 beds making it one of the largest
Slide 24: Brownfield Projects Under Construction
Brownfield Projects Under Construction Peninsula & Beleura Private Hospitals, Melbourne: $21 million • Additional operating theatres • Introduction of cardiac surgery service • Intensive Care Unit • New private beds Cairns Private Hospital, Cairns: $5.9 million • New operating theatre complex 24
Slide 25: Brownfield Projects Under Construction
Brownfield Projects Under Construction Westmead Private Hospital, Sydney: $4.3 million Da Vinci Robotic Surgical System Additional operating theatre The Avenue Private Hospital, Melbourne: $14.0 million 3 new operating theatres Increased day surgery capacity 25
Slide 26: Brownfield Developments - approved post June 2012
Brownfield Developments - approved post June 2012 $20.6 million approved in new brownfield developments for the quarter ended 30 Sept 2012: – Shepparton Private Hospital: $4.4 million stand alone day procedure unit – Donvale Private Hospital: $9.8 million 40 bed ward development – Mitcham Private Ho
Slide 27: Public/Private Collaborations
Public/Private Collaborations Joondalup Health Campus, Perth: – Public/Private hospital in partnership with WA Health – Staged opening – Completion scheduled for mid 2013 27
Slide 28: Public/Private Collaborations
Public/Private Collaborations Sunshine Coast University Private Hospital: – Public/Private hospital in partnership with Queensland Health – Completion scheduled for Dec 2013 28
Slide 29: Formula for Success
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Slide 30: Our Successful Growth Strategy
Our Successful Growth Strategy • Underpinned by demographics, quality portfolio of Organic hospitals, ongoing business improvement • Unmet demand driving Ramsay’s ongoing investment Brownfields in capacity expansion Public/Private • Potential for more partnerships to develop/ manage/provide hospital
Slide 31: Our Successful Culture
Our Successful Culture Ramsay Health Care is committed to ensuring: • 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 work for 31
Slide 32: Outlook
Ramsay Health Care Outlook RHC Annual General Meeting 2012
Slide 33: Outlook
Outlook • Completed brownfield projects adding to earnings at EBIT and 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 opportunities in existing and emerging markets • State gov
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