Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Austock Brokers Healthcare Seminar (March 2003)
24 slides from Ramsay Health Care's conference presentation, Mar 24, 2003
Slide 1: Austock Brokers Healthcare Seminar
ne ms RAMSAY HEALTH CARE Austock Brokers Healthcare Seminar 24 March 2003
Slide 2: Half-year Financial Highlights
ALTE € nae say Half-year Financial Highlights | B NPAT up 25% to $18.5m Group EBIT up 14% (almost 10% excluding new hospital acquisitions) All divisions contributed to strong EBIT growth EBIT Margin remains high at 10.5% (excluding new hospital acquisitions) Strong occupancy levels maintained: >» ad
Slide 3: Financial Performance
naneay Financial Performance HEALTH CARE Half-year Ended 31 December 2001 2002) Inc. EBITDA Profit before tax 21.2 26.0 23% EPS (cents/share) 11.7¢ 14.4¢ 23%
Slide 4: Net Profit Growth
nanny Net Profit Growth HEALTH CARE Dec'00 Jun'01 Dec'O01 Jun'O2 Dec'02 Half year a NPAT up 25% for half-year
Slide 5: Earnings per share
. RAMSAY Earnings per share HEALTH CARE 14.4 oy 9 ° a ° Cents per share Dec'00 Jun'01 Dec'01 Jun'02 Dec'02 Half-year w Basic EPS up 23% for the half-year # Double digit growth anticipated for the full-year
Slide 6: EBIT Growth
EBIT Growth 32.9 Dec'00 Jun'01 Dec'01 Jun'02 Dec'02 Half-year m EBIT up 14% for the half-year w EBIT margin 10.5% (excluding new hospital acquisitions)
Slide 7: Occupancy — Patient Days
Occupancy — Patient Days 400 350 300 — Inpatient —tTotal (Inpatient & Day Patients) 250 200 T Jun'0o0 Dec'00 Jun'01 Dec'01 Jun'02 Dec’02 Half-year Ended a Strong occupancy levels maintained with admissions up 9% (5% excluding new hospital acquisitions, Cairns and Lake Macquarie)
Slide 8: Questions to be answered
, ravsay 2 Questions to be answered, LTR CARE. ¥ Why is Ramsay performing better than most? Vv Why do we believe that the private hospital sector is still conducive to growth, for the better operators - despite industry challenges?
Slide 9: Operational & Strategic Direction
| / AY Operational & Strategic Directio » Commitment to micro-management >» Appropriate decentralised management >» Experience management team > Strong staff recruitment and retention programme “The Ramsay Way” >» Strong doctor and industry relationships >» Focus on sustainable cost management > On
Slide 10: Operational & Strategic Direction
naneay Operational & Strategic Directio ALYH CARE » Developing a quality portfolio of strategically positioned hospitals » Priority to investing in existing business « Targeting 15% return on assets » Acquisitions based on strict investment criteria « Strategic fit e« Moderate to low operating risk
Slide 11: Industry Challenges
nAB ay Industry Challenges HEALTH CARE Issue Response « Nursing shortage & > Preferred employer status, increased cost of wages: seek to recover higher wage costs from health funds. «+ Increased cost of medical >» Emphasis upon risk indemnity insurance: management enhancement programme. « Health fun
Slide 12: A Balanced Health Care System
2AM Ay A Balance Health Care System HEALTH CARE » Both political parties acknowledge that they cannot afford to fund the rising cost of health care » Aging population > Over 65 years old - usage is 5 x higher » Escalating cost increases » Who pays? The answer - encourage user pays » Australians pref
Slide 13: Success of Government Initiatives
msay Success of Government Initiatives LTR CARE. » In 2000/01 private hospitals treated an extra 245,000 patients a Public hospital treatments fell by 5,000 patients, a reversal of all former trends » In the same period public hospitals received an extra $362 million a All figures show a Surge of pr
Slide 14: Expanding role of the Private Sector
naneay Expanding role of the Private Secto ALYH CARE a» Private hospitals are now performing the majority of surgery in Australia - 52% a» Together private hospitals and day surgeries treat 4 out of every 10 hospital patients in Australia a Over 2000/01 capital investment by private hospitals grew t
Slide 15: Industry Conducive to Growth
ramsay Industry Conducive to Growth ALT B » We believe that the private hospital sector is still conducive for growth for those operators with: >» Good management >» Focused strategic directions > A portfolio of hospitals in which Health Fund member demand, drives health fund negotiations
Slide 16: Outlook
RAMSAY Outlook LTR CARE. » Comfortable with market consensus for NPAT of approximately $37m for FY 2003 » Scope exists for continuing organic growth of existing business » Acquisitions provide opportunity to enhance growth and profit outlook » Targeting double-digit growth foreseeable future » Explo
Slide 17: Questions
ne ms RAMSAY HEALTH CARE Questions
Slide 18: Appendix
ne ms RAMSAY HEALTH CARE Appendix
Slide 19: Revenue Growth Time Line
RAM HEALTH LE, AY Revenue Growth Time Line __ Perth Alpha Hosp Veteran Hosp RHC listed _ _ Group Privatisation on the ASX Acquired $m _Febio4 Sept’97 -May'01 + Veteran Hosp - Brisbane Privatisation: — Jan'95_— _ Co-located North Shore Private Hosp Opened Jul’98 1993 1994 1995 1996 1997 1998 1999 200
Slide 20: Cash Flow
RAM Gay Cash Flow HEALTH CARE Annual | Half-Year : 2003 FY H EBITDA 0 Cash Flow 2000 FY 2001 FY 2002 FY Dec'02 rrr m Except for operating movements in working capital, the half-year EBITDA has translated into strong gross operating cash flow. The effective cash flow management is consistent with pri
Slide 21: Financial Indicators
Financial Indicators Six months ended 30 Jun’01 31 Dec’01 | 30 Jun’O02 | 31 Dec’02 Net Gearing % 83 70 73 78 ROIC (@) . . . 14. (EBIT/Funds Employed) % 117 14.4 14.9 3 (3) ROE 8.0 12.1 13.9 14.3 (NPAT/Shareholder Funds) % a) Alpha (acquired May’01) excluded as only one month of trading for the perio
Slide 22: Facility Portfolio
Facility Portfolio Operating Divisions — N um \ber = | fC aL : RR TRE RR GRE Re “Facilities {. Veteran 2 830 Co-located 3 376 Regional Medical - Surgical *10 859 Psychiatric 8 552 Rehabilitation 2 119 * Including the Coffs Harbour Day Surgery
Slide 23: Revenue Analysis
Revenue Analysis HEALTH Cd Revenue by Revenue by Operating Division Payor Source 610% B3% 836% 7% 06% 022% 029% B35% B 52% mveteran & Medical-Surgical @ Health Insurance m Dept. Veteran Affairs O Co-located @ Psychricatric ‘ @ Rehabilitation @ Government O Other
Slide 24: Ramsay Health Care
ne ms RAMSAY | HEALTH CARE
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