Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (November 2013)
35 slides from Ramsay Health Care's shareholder meeting presentation, Nov 14, 2013
Slide 1: Christopher Rex, Managing Director
For personal use only Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only • FY2013 Year in Review • Delivering on our Growth Strategy • Development Update • Outlook 2
Slide 3: FY2013 Year in Review
FY2013 Year in Review Ajuo sn jeuosied JO[
Slide 4: Ramsay Health Care
RAMSAY HEALTH CARE For personal use only • 121 hospitals in five countries • Circa 12,000 beds • Employs more than 30,000 people • Admits 1.3 million patients per annum 4
Slide 5: Quality & Safety – The Ramsay Way
QUALITY & SAFETY – THE RAMSAY WAY For personal use only Patient care and staff safety were our continued priority in 2013: • Ramsay performed better than industry benchmarks in all key patient safety and quality indicators • Hospital patient quality and safety data now published on our corporate and
Slide 6: Awards & Achievements – The Ramsay Way
AWARDS & ACHIEVEMENTS – THE RAMSAY WAY For personal use only • Ramsay UK awarded Private Hospital Group of the Year for delivering outstanding healthcare • All our hospitals in Indonesia have international accreditation with JCI (Joint Commission International) – Premier Surabaya Hospital only 9 hos
Slide 7: Employee Recognition – The Ramsay Way
EMPLOYEE RECOGNITION – THE RAMSAY WAY For personal use only • The Ramsay Way culture recognises that our people are the key to our success • Ramsay launched an employee share programme in July 2013 in appreciation of the key role our employees play in our Company • The new share programme is designe
Slide 8: FY2013 Financial Highlights
FY2013 FINANCIAL HIGHLIGHTS For personal use only • Group Revenue – $4.2 billion 5.5% • Group EBITDA – $627.7 million 7.6% • Group EBIT – $485.3 million 10.6% • Core NPAT – $290.9 million 15.1% • Reported NPAT – $266.4 million 9.1% • Core EPS – 135.9 cents/share 17.1% • Full Year Dividend – 70.5 cen
Slide 9: Segment Operational and Financial Highlights
For personal use only Segment Operational and Financial Highlights
Slide 10: Geographical Segments
GEOGRAPHICAL SEGMENTS For personal use only Operating Revenue Operating Profit Before Rent 5% 5% 13% 19% 2% 2% 74% 80% Australia Australia Indonesia* Indonesia* United Kindom United Kingdom France France Strong Australian business is the largest contributor to earnings and cash flow * On 1 July 2013
Slide 11: Operational/Financial Highlights – Australia
OPERATIONAL/FINANCIAL HIGHLIGHTS – AUSTRALIA For personal use only • Revenue up 7% to $3.3 billion • EBIT up 11% to $410 million • Australian hospitals EBITDA margin up 50 bps to 17.9% • Completed major hospital expansions including $47m development at Greenslopes Private Hospital in Brisbane and op
Slide 12: Operating Environment – Australia
OPERATIONING ENVIROMENT – AUSTRALIA For personal use only • Market fundamentals remain strong • Health fund membership continues to grow - now at 47% of the population • State governments (WA/NSW/Qld) pursuing increased role for private operators in delivery of public hospital services 12
Slide 13: Operational/Financial Highlights – Asia
OPERATIONAL/FINANCIAL HIGHLIGHTS – ASIA For personal use only • Solid performance for the year • Revenue up 11.5% to IDR 673.2 billion • EBIT up 28% to IDR 79.3 billion • EBITDA margins increased from 16.5% to 17.8% • The new joint venture with Sime Darby, commenced in July 2013, combines Sime Darby
Slide 14: Operating Environment – Asia
OPERATING ENVIRONMENT - ASIA For personal use only • Ageing and increasingly affluent population • Increasing sophistication of medical market • Currently less well-served patient populations – below average beds and doctors per population • Desire to import western knowledge and experience • Increa
Slide 15: Operational/Financial Highlights – Europe
OPERATIONAL/FINANCIAL HIGHLIGHTS – Europe For personal use only UK • Ramsay’s UK business exceeded expectations with EBITDAR rising 2.6% to £93.4 million off the back of marginal increases in revenue • EBITDAR margin up 52 bps to 25.5% • Private medical insured admissions remain subdued but continue
Slide 16: Operating Environment – Europe
OPERATING ENVIRONMENT - EUROPE For personal use only • Health care reform is expected to provide continuing opportunities for the private sector • Positive demographics will continue to drive hospital utilisation • In the UK the Competition Commission has reported its interim findings • Opportunity
Slide 17: Building & Delivering on our Growth Strategy
For personal use only Building & Delivering on our Growth Strategy 17
Slide 18: Growth Strategy
GROWTH STRATEGY For personal use only Sustainable growth enhanced by focusing on hospitals and taking a prudent approach to acquisitions Brownfield Creation of Public/Private Organic + Capacity + Collaborations + Acquisitions Shareholder Expansion Value Underpinned by Unmet demand Potential fo
Slide 19: Delivering Strong Shareholder Returns
DELIVERING STRONG SHAREHOLDER RETURNS For personal use only Ramsay Total Shareholder Return versus S&P/ASX 100 Accumulation Index (share price appreciation plus reinvestment of dividends) 31-Oct-13 3,742% Ramsay TSR Compound Annual Growth Rate (CAGR) 25.2% S&P/ASX 100 Accumulation Index (CAGR) 8
Slide 20: Brownfield Developments
For personal use only Brownfield Developments 20
Slide 21: Brownfield Developments – Australia
BROWNFIELD DEVELOPMENTS - AUSTRALIA For personal use only Over $200m approved for new projects during the year including: • $64m expansion of Hollywood Private, Perth • $56m for expansion of Warringal Private, Melbourne • $34m for expansion of Pindara Private, Gold Coast • $20m for expansion of Kare
Slide 22: Brownfield Developments – Australia (Completed)
BROWNFIELD DEVELOPMENTS - AUSTRALIA For personal use only Completed projects during the year: • $47m development at Greenslopes Private, Brisbane • $10m expansion at Beleura Private, Melbourne • $133m new Joondalup Private Hospital opened on the Joondalup Health Campus, Perth 22
Slide 23: Brownfields Approved Since June
BROWNFIELDS APPROVED SINCE JUNE For personal use only • $12m - rehabilitation development at Beleura Private, Melbourne • $7.6m - theatre and ICU development at Lake Macquarie Private, Newcastle • $5.9m - theatre development at Dudley Private, Orange • $5.1m - day surgery development at Caboolture P
Slide 24: Public/Private Collaborations
For personal use only Public/Private Collaborations 24
Slide 25: Public/Private Collaborations
PUBLIC/PRIVATE COLLABORATIONS For personal use only Existing public/private collaborations: • Joondalup Health Campus, WA • Noosa Hospital, Qld • Mildura Base Hospital, Vic • Peel Health Campus, WA • Sunshine Coast University Private Hospital, Qld • Northside Macarthur Clinic, NSW (opened early Nov
Slide 26: Peel Health Campus WA
PEEL HEALTH CAMPUS WA For personal use only Peel Health Campus in Mandurah, WA: − 152 bed public hospital − Located in southern Perth − Offers medical, surgical, maternity and rehabilitation services − Over 40,000 emergency presentations per annum − Immediate opportunity to further develop both publ
Slide 27: Sunshine Coast University Private Hospital
SUNSHINE COAST UNIVERSITY PRIVATE HOSPITAL For personal use only 27
Slide 28: For personal use only
For personal use only 28
Slide 29: Expansion in Asia
EXPANSION IN ASIA For personal use only • JV with Sime Darby is first major step into Asia since acquiring Indonesian hospitals in 2005 • Aim of the joint venture will be to build a quality portfolio of hospitals throughout Asia • 600 million people in ASEAN with rising middle class demanding qualit
Slide 30: Expansion in France
EXPANSION IN FRANCE For personal use only Clinique de l’Union Toulouse, France: • Acquired 7 June 2013 • A leading 531 bed medical, surgical, obstetric hospital • 43,000 inpatients and 26,000 emergency presentations pa • Gross revenue circa €65 million pa • Excellent addition to the French portfolio
Slide 31: Expansion Opportunity in France
EXPANSION OPPORUNITY IN FRANCE For personal use only Medipsy, France • In October 2013, Ramsay announced it has entered into exclusive negotiations with Générale de Santé Group to acquire its psychiatric division known as Medipsy. • About Medipsy: – 30 psychiatric clinics; – 2,600 beds; – Gross reve
Slide 32: Outlook
For personal use only Outlook 32
Slide 33: The Future
THE FUTURE For personal use only • Ageing demographic and growing disease burden – leading to increased demand for healthcare • Rising costs – leading governments across the globe to consider healthcare reform • Private sector offers efficient and effective models of healthcare delivery • An expansi
Slide 34: Outlook
OUTLOOK For personal use only • Continue to produce increasing benefits from our successful capacity expansion programme in Australia • In Australia, look to further our involvement in emerging public/private opportunities • Further develop and execute a growth plan for Asia • Integrate and grow the
Slide 35: Questions
For personal use only an CS RAMSAY HEALTH CARE Questions
Ramsay Health Care — Shareholder Meeting (November 2013) on 6ix