Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (November 2004)
27 slides from Ramsay Health Care's shareholder meeting presentation, Nov 23, 2004
Slide 1: Annual General Meeting 23 November 2004
ne ms RAMSAY HEALTH CARE ANNUAL GENERAL MEETING 23 November 2004
Slide 2: Chairman's Overview FY2004
nA AY Chairman’s Overview FY 2004 ABE. » 40 anniversary of Ramsay Health Care e Year of profitable growth and financial achievements » Good management delivers forecast core profit growth of over 10%, year dividends up 13% x» Acquisition of Benchmark Hospital Group will see revenue top $1 bin in FY2
Slide 3: Financial Highlights
rasay Financial Highlights ALTH & VB a» Core Net Profit* up 13% to $42.7m a» Group revenue up 16% to $768.1m a» Group EBITA up 16% to $77.6m » Both EBIT & EBITA margins remain at 10% a» Core EPS* of 33.1 cps, up 13% a» Final dividend 10 cps, fully franked; Total dividend 17.5 cps up 13% * Core = pre
Slide 4: Core Net Profit Growth
RAMSAY Core Net Profit Growth 2ALTH CARE $m 45+ 42.7 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Slide 5: EBITA Growth
RAMSAY HEALTH € EBITA Growth $M g0- 70- 60- 50- 404 30- 207 77.6 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004
Slide 6: Financial Indicators
Financial Indicators HEALTH CARE ROIC (EBITA/Funds Employed) % 10.5 15.1 13.9 15.4 ROE (Core NPAT/Shareholder Funds) % 8.3 14.2 14.9 15.8 Notes: @ Calculated before non-recurring items
Slide 7: Core Earnings per Share
Core Earnings per Share ae RAMSAY HEALTH CARE 33.1 357 r Yr y u fe o wy oO N N Ol « a1eys tod sjue9 FY 2002 FY 2003 FY 2004 Fy 2001 FY 2000
Slide 8: Increased Dividend
Increased Dividend 20.0 17.5 18.0 15.5 16.0 g 14.0 11.0 § 12.0 i“ @ 10.0 . a 7.4 85 2 8.0 Fi uo 6.0 4.0 : > S| 0.0 Fy 2000* Fy 2001* FY 2002* FY 2003** FY 2004** O Final 4.4 5.0 6.5 9.0 10.0 @ Interim 3.0 3.5 4.5 6.5 7.5 Total 7.4 8.5 11.0 15.5 17.5 Notes * Unfranked ** Fully Franked
Slide 9: A Track Record of Profitable Growth
A TRACK RECORD OF PROFITABLE GROWTH
Slide 10: A Track Record of Profitable Growth
A TRACK RECORD OF PROFITABLE GROWTH » Revenue has increased 4-fold since Ramsay Health Care listed in September 1997 » Ramsay Health Care now Australia’s largest listed private hospital operator > 35 hospital facilities > 16% of the private hospital market > 10,000 employees
Slide 11: Revenue Growth Time Line
Es RAMSAY Revenue Growth Time Line $m 1,200- Benchmark Group Acquired Jul’04 1,100- Greensiopes Major 1,000- Expansion Opened May'03 900- Hollywood Major Expansion Opened Jul’02 800-7 Alpha Group 700- Acquired May'01 600-4 North Shore Private Hosp Opened Jul'98 500-7 RHC Listed Greenslopes Veteran H
Slide 12: Revenue by State
HNSW O Victoria South Australia @ Queensland @ West Australia Note: Analysis based on forecast revenue for FY 2005 including Benchmark
Slide 13: Australia's Balanced Healthcare System Supports Our Growth Outlook
AUSTRALIA’S BALANCED HEALTHCARE SYSTEM SUPPORTS OUR GROWTH OUTLOOK
Slide 14: Australia's Balanced Healthcare System
Hr Australia’s Balanced RAMSAY Healthcare System » Private participation in Australian healthcare is growing: > One-third of all hospital beds > Treat 4 out of every 10 patients > 2.4min private admissions per year vs 4mIn in the public > Private Hospitals perform 56% of surgery
Slide 15: Australia's Balanced Healthcare System
| Australia’s Balanced RAMSAY Healthcare System » In the 4 years to 2004 >» Private hospital admissions rose 37% >» Public hospital admissions rose 6% >» In 2003 public hospital admissions were up 2.4%, but 50% of these were private patients » Bi-partisan support for 30% private health insurance reb
Slide 16: Our Strategy Delivers Results
OUR STRATEGY DELIVERS RESULTS
Slide 17: Our Strategy Delivers Results
a RAM Gay STRATEGY DELIVERS RESULTS HEALTH CARE Strategy has delivered strong, sustainable profit growth 1. Organic growth through micro- management 2. Existing hospital capacity expansion 3. Hospital acquisitions 4. Diversify outside hospitals, within core capabilities
Slide 18: Organic Growth Through Micro-Management
ORGANIC GROWTH THROUGH RAMSAY MICRO-MANAGEMENT a» Focus on core hospital management expertise, manage cost pressures » EBIT margins above 10% >» Organic growth 6% in FY2004 a Leverage market position, strategic portfolio » Admissions up 11% in FY2004 » Reasonable rate increases from health funds a M
Slide 19: Capacity Expansion in Existing Hospitals
oS CAPACITY EXPANSION IN RAMSAY EXISTING HOSPITALS HEALTH CARE » 1st phase of capacity expansion completed, return on investment meeting expectations: >» Greenslopes Hollywood >» Lake Macquarie >» Albury >» Mt Wilga (near completion) » Further investment in enhancements and additional capacity plann
Slide 20: Hospital Acquisitions: Benchmark Hospital Group
a RAM EAy HOSPITAL AQUISITIONS HEALTH CARE Benchmark Hospital Group > Well-run portfolio of 10 hospitals located in Victoria and South Australia >» 980 hospital beds, with 71 additional beds coming on stream in 2005 >» 68 aged care beds » Operational update > Results on track for positive EPS contri
Slide 21: Benchmark Strategic Rationale
a RAM EAY HOSPITAL ACQUISITIONS ALYH CARE Benchmark strategic rationale > Increases market share in Victoria and South Australia, provides opportunity to make bolt-on acquisitions in those states > Strengthens position with private health funds > Ability to generate operating efficiencies — e.g. pur
Slide 22: Opportunities Outside Hospitals: Aged Care
- OPPORTUNITIES OUTSIDE RMSaY HOSPITALS Aged Care » Dual track strategy - acquisitions & greenfields development e» Acquisition opportunities >» Cautious approach — looking for appropriate value >» Looking at groups, as well as individual facilities » Greenfield developments >» Targeting 500-600 bed
Slide 23: Aged Care: Status of Greenfield Developments
_ OPPORTUNITIES OUTSIDE RVI HOSPITALS Aged Care — Status of Greenfield Developments
Slide 24: Outlook
OUTLOOK
Slide 25: Outlook
na say OUTLOOK ALTE CARE » First 4 months in line with target to achieve 10% growth in FY2005 core net profit (pre-amortisation of goodwill) » Target does not include benefits of any further acquisitions » Benchmark hospitals running to plan to make positive core EPS contribution in FY2005, increasi
Slide 26: Questions
ne ms RAMSAY HEALTH CARE uestions
Slide 27: Formal Business
ne ms RAMSAY HEALTH CARE Formal Business
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