Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (November 2003)
23 slides from Ramsay Health Care's shareholder meeting presentation, Nov 25, 2003
Slide 1: Annual General Meeting 25 November 2003
ne ms RAMSAY HEALTH CARE ANNUAL GENERAL MEETING 25 November 2003
Slide 2: Chairman's Overview
S na nnay Chairman’s Overview HEALTH CARE « Net profit up 19%, building on record profit growth of previous 2 years «» Total year dividend up 41% to 15.5 cents (fully franked) vs. 11 cents (unfranked) «» Strong result underlines strength and importance of Ramsay’s relationships with doctors and staf
Slide 3: Financial Highlights
RAMSAY Financial Highlights ALYH CARE » Net Profit up 19% to $37.1m = Group Revenue up 20% to $662.2m # Group EBIT up 14% to $66.4m (11% excluding acquisitions) » Expansion program accounted for 6% EBIT growth >» Organic growth accounted for 5% EBIT growth # EBIT margin of 10.4% (excluding new hospi
Slide 4: Year Ended June
Year Ended 30 June 2002 2003 $m $m 43.6 53.5
Slide 5: NPAT Growth
HEA LTR CARE. NPAT Growth $m 37.1 40.0; 35.07 30.07 25.0; 20.077 15.07) 10.0, 5.07 0.0- FY 2000 FY 2001 FY 2002 FY 2003 = Strong NPAT growth, year on year
Slide 6: Earnings per share
Earnings per share Cents per Share 307 28.9 » u \ iy o # EPS up 18% in the year w Return on investment 13.8% for FY03 w Return on equity 14.6% for FY0O3 Fy 2000 FY 2001 FY 2002 FY 2003
Slide 7: Dividend Growth
RAMSAY Dividend Growth HEALTH CARE 15.5# Cents per Share FY 2000 FY 2001 FY 2002 FY 2003 =» Dividend increased 41% in latest year * Unfranked # Fully franked
Slide 8: Operational Highlights
RAMSAY PH CABE Operational Highlights » Focus on cost containment resulted in 2" half NPAT matching 1st half despite higher nursing wages and seasonal factors » Health Fund negotiations > Positive relationships >» Aim to cover cost increases » Medical Indemnity > Excellent risk management record in
Slide 9: Occupancy levels by half-year
440 380 320 260 200 —@ Inpatient t= Total (Inpatient & Day Patients) Jun'00 Dec'00 Jun'01 Dec'01 Jun'02 Dec'02 Jun'd3 Half-year Ended m Occupancy levels for the second half maintained despite seasonality
Slide 10: Revenue Growth Time Line
AY Revenue Growth Time Line LE, RAM HEALTH Perth _ Alpha Hosp Veteran Hosp RHC listed Group Privatisation on the ASX Acquired | $m Feb’94 Sept 97 May’01__ Brisbane __ Je | Co-located VeteranHosp |= -__—CNorth Shore Privatisation — = || Private Hosp - Opened Jul’98 1993 1994 1995 1996 1997 1998 1999
Slide 11: EBIT Growth
EBIT Growth 66.4 FY 2001 FY 2002 FY 2003 w Group EBIT increased by 14% a Breakdown of EBIT Growth: » Brownfield developments - 6% » Organic growth - 5% » Acquisitions - 3% » Group EBIT margin 10.4% (excluding acquisitions) Fy 2000
Slide 12: Brownfield Developments: Hollywood Private Hospital
, RAMSA Brownfield Developments PCABRE Hollywood Private Hospital « Development: 60 new beds 10 new psychiatric beds 2 additional operating theatres (with capacity for two more theatres) A new Intensive Care Unit An additional Cardiac Catheter Lab Palliative care unit Medical suite complex e Came on
Slide 13: Brownfield Developments: Greenslopes Private Hospital
. RAMSAY Brownfield Developments HEALTH CARE Greenslopes Private Hospital « Development » 90 new beds » 4 additional operating theatres >» Medical suite complex e Largest private hospital in Australia at 527 beds e Opened late FY 2003 e Already exceeding current year EBIT target and investment hurdl
Slide 14: Hospital development
Hospital e Acquired April 2002 « Hospital development » 44 new beds; total of 122 beds » 2 additional operating theatres (with capacity for a third theatre) » expanded day surgery » medical consulting suite complex « Development largely complete - opening January 2004
Slide 15: Brownfield Developments: Mt Wilga Private Hospital
. RAMSAY Brownfield Developments HEALTH CARE Mt Wilga Private Hospital « Hospital redevelopment >» New ward block; total of 80 beds >» New administration block, reception and entry » Additional services e« Completion targeted for end of 2004 calendar year
Slide 16: Acquired November 2002
Acquired November 2002 141-bed former not-for-profit hospital servicing a large population in Northern Queensland Exceeding budget EPS positive in the current year Improved performance under Ramsay management
Slide 17: DVA Contract Extended
naneay DVA Contract Extended ALYH CARE » Ramsay will continue to have a contract with DVA for services to veterans at Greenslopes and Hollywood post-2006 » Facilitates the continuation of vital service to veterans » Greenslopes and Hollywood will continue as major providers of hospital services to v
Slide 18: Strategy
Strategy » Management still pursuing growth strategy » Organic growth through micro-management >» Target lower risk, higher returns through investment in existing hospital portfolio and capacity expansion » Continue to investigate opportunities for growth both within the private hospital sector and
Slide 19: Strategy
RAMSAY Strategy HEALTH CARE » Aged Care » Focus on specific profitable sectors of market, accommodation bonds and chargeable extra services >» Funding through free cash flow, enhanced by accommodation bonds » Silver Circle acquisition » Continue to pursue opportunities » Hospitals » Continue to purs
Slide 20: Mayne Hospitals Bid
Mayne Hospitals Bid a Final acquisition terms did not meet Ramsay investment parameters » One off costs in relation to the bid, approximately $2.5m, to be accounted for as a “specific” item in 1st half FY 2004 >» no impact on core profitability and ongoing cash flow generation
Slide 21: FY 2004 on Track
a Ancay FY 2004 on Track LTR CARE. a Payer negotiations successfully completed for 90% of revenue a First Quarter FY 2004 core profit in line with Budget > Gross revenue up 19% >» Admissions and patient days up 13% (5.5% excluding Cairns and Greenslopes development) >» EBIT margins holding up above
Slide 22: Outlook
RAMSAY Outlook LTR CARE. «» Strategic position of RHC hospitals expected to keep demand strong against a slight industry softening » Focus on cost containment and growing business » Expansion program benefits continue to contribute to earnings - Greenslopes, Lake Macquarie » Remain in a strong posit
Slide 23: Questions
ne ms RAMSAY HEALTH CARE uestions
Ramsay Health Care — Shareholder Meeting (November 2003) on 6ix