Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Investor Presentation (October 2018)
22 slides from Ramsay Health Care's investor presentation, Oct 29, 2018
Slide 1: Acquisition of Capio
Ramsay Health Care Limited ACQUISITION OF CAPIO Creating a leading provider of healthcare services in Europe Craig McNally, Chief Executive Officer, Ramsay Health Care Pascal Roché, Chief Executive Officer, Ramsay Générale de Santé Bruce Soden, Chief Financial Officer, Ramsay Health Care 29 October
Slide 2: Transaction Highlights
Transaction Highlights Craig McNally 2
Slide 3: Introduction
Introduction • Ramsay Générale de Santé (‘RGdS’), Ramsay Health Care Limited’s (‘Ramsay’) 51% owned listed French subsidiary, has been successful in its public offer for Nasdaq Stockholm-listed Capio AB (publ.) (‘Capio’) • Capio offer price (for 100% of the issued capital) is SEK8,187 million (€788
Slide 4: Key benefits of the transaction
Key benefits of the transaction Acquisition of Capio’s integrated healthcare network is consistent with Ramsay’s strategy to grow both its hospital and out-of-hospital businesses Consistent with Ramsay’s strategy to grow its global portfolio in new markets and where it is a strategic fit: • Capi
Slide 5: Transaction rationale
Transaction rationale 2 3 Diversification into Strong underlying adjacent healthcare growth levers businesses 1 4 Unique expertise in Leadership positions healthcare specialisation in sizeable markets and “Modern Medicine” 7 5 High knowledge and Enlarged patient base expertise in digitalisation 6 St
Slide 6: Delivering on Ramsay's growth objectives
Delivering on Ramsay’s growth objectives Creation of Shareholder Value Growth through New growth acquisitions platforms Brownfield Capacity Expansion Public / private collaborations Organic growth 6
Slide 7: Creating a leading European player
Creating a leading European player Leading European acute care players (2017 sales in €bn) Multi- geography P P P O O O O P O O P O O 8.7 4.2 3.8 3.3 2.6 2.2 2.1 1.6 1.2 1.1 1.1 1.1 0.4 … 1 1 1 Fresenius - Asklepios Sana Elsan 2 Rhoen- Praktikertjänst Ambea Spire Helios Klinikum2 PF 3 Healthcare eco
Slide 8: Expanded European footprint
Expanded European footprint Combined geographical footprint with strong positions in key European markets Revenue: £424m Revenue: €871m Patients (#, k): 240 Patients (#, k): 4,077 FTEs (#): 4,324 FTEs (#): 6,556 Location (#): 32 Location (#): 151 Revenue: €117m Revenue: €2,780m Patients (#, k): 247
Slide 9: The Ramsay Health Care Global Network
The Ramsay Health Care Global Network 77,000 Employees $11.6B Revenue (AUD) 470 Locations Hospitals & Facilities 8,500,000 10 With Capio, Ramsay Health Care’s global network extends across 10 countries, with 8.5 Countries million admissions/patient visits to its facilities in Patient visits/admissio
Slide 10: A more diversified geographical profile
A more diversified geographical profile Revenue breakdown by geography Consolidated Ramsay revenue Capio Consolidated Ramsay revenue (pre transaction) (post transaction) Germany Germany Nordic 2% 8% 12% France Australia/ 38% Asia Australia/ France 43% Asia 35% Nordic 54% 57% France 37% UK UK 8% 6% J
Slide 11: Creating a leading European health services provider
Creating a leading European health services provider Pascal Roché 11
Slide 12: Key macro facts about Capio's markets
Key macro facts about Capio’s markets Sweden Norway Denmark France Germany Population 9.9m 5.3m 5.7m 67m 83m (2017) Population growth +0.8% +1.2% +0.5% +0.4% +0.2% (average 2010-2017) Share of population 60+ years 25% 22% 25% 26% 28% (2017) Forecasted share of 30% 29% 30% 32% 38% population 60+ year
Slide 13: Degree of specialized care
Capio integrated healthcare network Geographic footprint (# of locations) high # Degree of specialized care Emergency hospital 1 8 ¹ 9 Local hospital 2 8 5 11 5 31 Specialist 43² 3 6 3 4 59 clinic Primary care unit 83 73 90 low Ʃ189 low Number of locations high Source: Capio annual report 1. Hospit
Slide 14: Complementary operations in Continental Europe
Complementary operations in Continental Europe Achieve best quality of life for every patient Combined Primary care - PPP PP Inpatient care PPP PP PPP Outpatient care PP PPP PPP Psychiatry PPP P PPP Rehabilitation PP P PP Emergency Dpt PP P PP Geriatric care - P P Digitalization e-health P PPP PPP A
Slide 15: Capio's distinctive strengths and attractive features
Capio’s distinctive strengths and attractive features • Market leader in Sweden, #3 position in France in acute care, solid #2 position in Norway Leader in • Continued trend towards increasing outsourcing and private involvement, particularly in Sweden attractive markets • Presence in large markets:
Slide 16: Strengthening leadership position in France
Strengthening leadership position in France • Leverage on Capio’s #3 position in France in acute care with a significant presence in surgery in complementary markets Leading position • Solid positions, notably in Lyon and Toulouse, enhancing RGdS’s cluster strategy in France • Reinforced positioning
Slide 17: Creation of a new growth platform in the Nordics
Creation of a new growth platform in the Nordics • Market leader in Sweden, with few sizeable players beyond top-3 Leading position • Solid #2 position in Norway in the Nordics • Recently entered Denmark • Healthcare spend growing steadily across the Nordics, outgrowing GDP, supported by public fund
Slide 18: Impact on Ramsay
Impact on Ramsay Bruce Soden 18
Slide 19: Financing of Capio offer price of €788 million
Financing of Capio offer price of €788 million Financing structure Key considerations • Ramsay and Prévoyance Dialogue du Crédit Agricole have €314m Debt irrevocably committed to subscribe a minimum of €550 million in financing RGdS’s planned equity issuance €314m €236m • RGdS executed an underwritt
Slide 20: Pro forma financial impact
Pro forma financial impact Actual FY18 Pro-forma Capio1 A$ bn Ramsay Consolidated Ramsay Consolidated (equiv)2 Group (Pre Transaction) Group (Post Transaction) Revenue 9.2 2.5 11.6 EBITDA 1.4 0.2 1.6 Consolidated Group Leverage Ratio 2.3x 2.9x Revenue (post transaction) EBITDA (post transaction) Ger
Slide 21: Next steps
Next steps 21
Slide 22: Next steps
Next steps • Interactions with Capio teams Meeting teams Integration & best practice committees • Settlement of shares tendered during the initial acceptance period is expected to commence on or around 7 November 2018 • Acceptance period extended to 7 November 2018 in order to give remaining sha
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