Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Investor Presentation (April 2020)
40 slides from Ramsay Health Care's investor presentation, Apr 22, 2020
Slide 1: Ramsay Health Care Limited Equity Raising
Ramsay Health Care Limited EQUITY RAISING 22 April 2020 ramsayhealth.com NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Disclaimer
DISCLAIMER This investor presentation (Presentation) is dated 22 April 2020 and has been prepared by Ramsay Health Care Limited (ACN 078 881 473) (Ramsay or the Company). By attending an investor presentation or briefing, or accepting, accessing or reviewing this Presentation, you acknowledge and ag
Slide 3: Disclaimer
DISCLAIMER Not financial product advice or offer (cont’d) Refer to Appendix B of this Presentation for further details about international offer restrictions. Investment risk An investment in Ramsay shares is subject to known and unknown risks, some of which are beyond the control of Ramsay and its
Slide 4: Disclaimer
DISCLAIMER Future performance and forward-looking statements This Presentation contains certain “forward-looking statements”. The words “expect”, “anticipate”, “estimate”, “intend”, “believe”, “guidance”, “should”, “could”, “may”, “will”, “predict”, “plan” “likely” and other similar expressions are
Slide 5: Disclaimer
DISCLAIMER Disclaimer (cont’d) Further, neither the Lead Manager nor any of its related bodies corporate, affiliates, officers, directors, employees, representatives, agents, consultants or advisers accept any fiduciary obligations to or relationship with you, any investor or potential investor in c
Slide 6: Positioning Ramsay for the Future
POSITIONING RAMSAY FOR THE FUTURE Ramsay Health Care is taking decisive action to strengthen its balance sheet in order to navigate an uncertain operating environment and increase financial flexibility • Equity raising to reduce net debt and enhance Ramsay Health Care’s (Ramsay or the Group) financi
Slide 7: Ramsay's Critical Role
RAMSAY’S CRITICAL ROLE Ramsay plays a critical role in the healthcare systems in each of its major markets, and has been actively involved in the global response to the COVID-19 pandemic • Private hospitals globally are playing a key role in Market Leading Positions1 supplementing the broader public
Slide 8: Impact of COVID-19
IMPACT OF COVID-19 Non-urgent elective surgery has ceased in Ramsay’s major operating regions Australia United Kingdom Continental Europe • Category 3 and non-urgent Category 2 • Elective and non-urgent surgical services • All non-urgent surgery stopped mid March surgical services ceased, effective
Slide 9: Partnership with Government
PARTNERSHIP WITH GOVERNMENT Ramsay is making its facilities and capabilities available to support public health systems in the global response to COVID-19; in return, Governments are contributing to the overall viability of the sector, including Ramsay, through contractual or legislative support Thi
Slide 10: Taking Decisive Actions
TAKING DECISIVE ACTIONS Ramsay’s capital management initiatives are intended to strengthen its balance sheet and enhance financial flexibility in order to navigate an uncertain operating environment and position Ramsay for future growth opportunities • Ramsay is undertaking: • A fully underwritten P
Slide 11: Pro Forma Capitalisation and Liquidity
PRO FORMA CAPITALISATION AND LIQUIDITY Ramsay Funding Group2 Ramsay Group3 • Proceeds from the equity raising will Pro forma Pro forma be used to partially repay Ramsay A$ million Impact of capital Impact of capital Funding Group’s revolving debt 31-Dec-19 Equity structure (as 31-Dec-19 Equity struc
Slide 12: Ramsay Remains Committed to its Strategy
RAMSAY REMAINS COMMITTED TO ITS STRATEGY Continuing to create shareholder value through its focused strategy… Growth Efficiency Sustainability Driving stronger growth Developing new Strengthening Building a more from the core growth platforms the core sustainable organisation Organic Growth Acquisit
Slide 13: Placement and Share Purchase Plan
PLACEMENT AND SHARE PURCHASE PLAN Placement size and • Fully underwritten institutional placement to raise approximately A$1,200 million structure • Issue of approximately 21.4 million new ordinary shares (New Shares), equal to 10.6% of current Ramsay ordinary shares on issue • Proceeds from the equ
Slide 14: Placement and Share Purchase Plan Timetable
PLACEMENT AND SHARE PURCHASE PLAN TIMETABLE Event Date1 Record date for SPP 7:00pm (Sydney time), Tuesday 21 April Trading halt and announcement of Placement and SPP Wednesday 22 April Placement bookbuild Wednesday 22 April Announcement of outcome of Placement Thursday 23 April Trading halt lifted –
Slide 15: Appendix A: Risk Factors
Appendix A: Risk Factors NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 15
Slide 16: A: Risk Factors
APPENDIX A: RISK FACTORS This section discusses some of the key risks associated with any investment in Ramsay, which may affect the value of Ramsay shares. The risks set out below do not constitute an exhaustive list of all risks involved with an investment in Ramsay. Before investing in Ramsay, yo
Slide 17: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Impact of COVID-19 (cont’d) • COVID-19 is having an adverse impact on the cost and global supply of Personal Protection Equipment (PPE) used to protect health care workers. As the supply chain of consumables and medication may be impacted the cost of these products
Slide 18: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Government policy and regulation Ramsay operates in the healthcare industry which is subject to extensive laws, regulations, policies and ethical standards (which may vary by jurisdiction) relating to, among other things, the conduct of operations, the licensing and
Slide 19: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Government policy and regulation (cont’d) In addition, Ramsay may become subject to new, additional or modified regulations which could impact Ramsay’s ability to continue its operations in the same manner or increase the regulatory and compliance obligations of Ram
Slide 20: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Relationships with doctors/third party administrators The recommendation of a patient’s doctor is often the most significant factor in a patient’s choice of hospital in many of Ramsay’s regions. Therefore, doctor engagement and working in partnership with doctors is
Slide 21: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Clinical risk The delivery of high quality clinical care is fundamental to Ramsay’s success. There are many things that could threaten this objective, including ineffective policies and practices and misbehaviour, misconduct and medical malpractice of staff and visi
Slide 22: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Ramsay’s information technology systems may fail, it has experienced and may experience a cyber-attack and its handling of personal information may not meet requirements (cont’d) Any damage or interruption to Ramsay’s information systems or those provided by third p
Slide 23: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Acquisition risk Over the last two years Ramsay has acquired Capio and in various regions a number of hospitals and health care services. Should these facilities fail to continue their improvement in financial performance and not achieve their expected positive cont
Slide 24: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Workers compensation insurance Ramsay Australia is considering moving to a nationally uniform workers’ compensation self-insurance arrangement under the Commonwealth Government’s Comcare scheme. An application was lodged in October 2019. However, this process has be
Slide 25: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Other operational risks Operational risk is the risk of direct and indirect loss arising from a wide variety of causes associated with Ramsay’s processes, personnel (including executive transitions), technology and infrastructure and generally accepted standards of
Slide 26: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Disputes or litigation Ramsay may also be involved in disputes or litigation, including disputes with patients, suppliers, funders, government and regulatory bodies, landlords, franchisees or current or former employees (for example, industrial action or workplace h
Slide 27: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) General Investment Risks Investment in shares There are general risks associated with investments in equity capital such as Ramsay shares. The trading price of Ramsay shares may fluctuate with movements in economic conditions and equity capital markets in Australia
Slide 28: A: Risk Factors (cont'd)
APPENDIX A: RISK FACTORS (cont’d) Tax laws and regulations may change Future changes in taxation laws in jurisdictions in which Ramsay operates, including changes in interpretation or application of the law by the courts or taxation authorities, may affect the taxation treatment of an investment in
Slide 29: Appendix B Foreign Selling Restrictions
Appendix B Foreign Selling Restrictions NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 29
Slide 30: B: Foreign Selling Restrictions
APPENDIX B: FOREIGN SELLING RESTRICTIONS International Offer Restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offere
Slide 31: B: Foreign Selling Restrictions (cont'd)
APPENDIX B: FOREIGN SELLING RESTRICTIONS (cont’d) Statutory rights of action for damages and rescission Securities legislation in certain of the Provinces may provide purchasers with, in addition to any other rights they may have at law, rights of rescission or to damages, or both, when an offering
Slide 32: B: Foreign Selling Restrictions (cont'd)
APPENDIX B: FOREIGN SELLING RESTRICTIONS (cont’d) Language of documents in Canada. Upon receipt of this document, each investor in Canada hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the New Shares (including for greater certaint
Slide 33: B: Foreign Selling Restrictions (cont'd)
APPENDIX B: FOREIGN SELLING RESTRICTIONS (cont’d) Japan The New Shares have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948), as amended (the FIEL) pursuant to an exemption from the registration requirements
Slide 34: B: Foreign Selling Restrictions (cont'd)
APPENDIX B: FOREIGN SELLING RESTRICTIONS (cont’d) Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document o
Slide 35: B: Foreign Selling Restrictions (cont'd)
APPENDIX B: FOREIGN SELLING RESTRICTIONS (cont’d) United Arab Emirates This document does not constitute a public offer of securities in the United Arab Emirates and the New Shares may not be offered or sold, directly or indirectly, to the public in the UAE. Neither this document nor the New Shares
Slide 36: B: Foreign Selling Restrictions (cont'd)
APPENDIX B: FOREIGN SELLING RESTRICTIONS (cont’d) United States This document may not be distributed or released in the United States. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or any other jurisdiction in which such
Slide 37: Appendix C: Summary of Underwriting Agreement
Appendix C: Summary of Underwriting Agreement NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 37
Slide 38: C: Underwriting Agreement Summary
APPENDIX C: UNDERWRITING AGREEMENT SUMMARY Ramsay has entered into an underwriting agreement with the Lead Manager in respect of the Placement (Underwriting Agreement) and pursuant to which the Lead Manager is acting as sole lead manager, bookrunner and underwriter of the Placement. The Underwriting
Slide 39: C: Underwriting Agreement Summary (cont'd)
APPENDIX C: UNDERWRITING AGREEMENT SUMMARY (cont’d) • any of the following occurs: (i) a director or any member of the ‘Ramsay Health Care Leadership’ team (as listed on Ramsay’s website immediately prior to the date of the Underwriting Agreement) is charged with an indictable offence; (ii) any regu
Slide 40: C: Underwriting Agreement Summary (cont'd)
APPENDIX C: UNDERWRITING AGREEMENT SUMMARY (cont’d) • there is an adverse change, or an event occurs which is reasonably likely to give rise to an adverse change, in the financial position, results, condition, operations or prospects of the Ramsay group (taken as a whole) other than as disclosed by
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