Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — UBS Australian Healthcare Conference 2013
28 slides from Ramsay Health Care's conference presentation, Jun 17, 2013
Slide 1: UBS Australian Healthcare Conference 2013
For personal use only UBS Australian Healthcare Conference 2013 17 June 2013 Christopher Rex, Managing Director
Slide 2: Ramsay Health Care – Overview
RAMSAY HEALTH CARE – OVERVIEW For personal use only • One of the largest & most successful private hospital operators in the world: – Operating 117 hospitals & facilities across 4 countries – 10,000 beds – 30,000 staff – Treating over 1 million patients per annum – Extensive education & training, in
Slide 3: Growth Story & Formula for Success
Growth Story & Formula for Success a
Slide 4: Consistently Delivering Strong Total Shareholder Returns (TSR)
CONSISTENTLY DELIVERING STRONG TOTAL SHAREHOLDER RETURNS (TSR) For personal use only Compound Annual Rate of Growth 31-May-13 over 15½ years 3,201% Ramsay Health Care TSR 25.0% Vs. S&P/ASX 100 Acc. Index 8.3% 31-May-13 251% Ramsay Health Care Listed on ASX – 23 September 1997 Source: UBS 4
Slide 5: Operating Revenue - Compound Annual Growth Rate (CAGR)
OPERATING REVENUE - Compound Annual Growth Rate (CAGR) For personal use only A$B 4.5 4.0 CAGR of 23.2% 3.5 3.0 2.5 Estimate 2.0 1.5 1.0 0.5 0.0 FY'98 FY'99 FY'00 FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 Operating Revenue CAGR, Operating Revenue 5
Slide 6: Core EPS - Compound Annual Growth Rate (CAGR)
CORE EPS - Compound Annual Growth Rate (CAGR) For personal use only 120.00 CAGR of 16.3% 100.00 80.00 Cents per Share 60.00 40.00 20.00 0.00 FY'98 FY'99 FY'00 FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 Core EPS CAGR, Core EPS 6
Slide 7: Our Formula for Success
OUR FORMULA FOR SUCCESS For personal use only • Management and culture – Long term, stable management team, special culture (“The Ramsay Way”) – Ramsay can export proven management model and blend it with local expertise • Modus operandi and strong growth strategy – Ramsay’s growth strategy has rema
Slide 8: Strong Growth Strategy
STRONG 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 f
Slide 9: Ramsay Health Care in 2013
RAMSAY HEALTH CARE IN 2013 For personal use only • Solid performance across worldwide portfolio • Completed projects to meet the growing demand in the ongoing brownfield capacity expansion programme (investing >$100m pa) • Recently entered a JV with Malaysian conglomerate Sime Darby to expand health
Slide 10: Geographical Segments
GEOGRAPHICAL SEGMENTS For personal use only Operating Revenue EBITDAR 7% 7% 13% 18% 3% 3% 72% 77% Australia Australia Asia * Asia * United Kindom United Kingdom France France Strong Australian business is the largest contributor to earnings and cash flow * Asia shows Ramsay’s 50% share of the expect
Slide 11: Clinique de l'Union, Sime Darby Asian JV, Peel Health Campus
For personal use only Clinique de l’Union Sime Darby Asian JV Peel Health Campus 11
Slide 12: Further Expansion of Footprint in Asia - JV with Sime Darby
FURTHER EXPANSION OF FOOTPRINT IN ASIA - JV WITH SIME DARBY For personal use only Joint venture agreement with Sime Darby announced on 26 March 2013, completion expected on 1 July 2013 Ramsay Health Care Sime Darby 50% 50% Joint Venture Company Ramsay Sime Darby RS Premier Jatinegara Health Care SDM
Slide 13: Expansion into Asia - Strategic Rationale
EXPANSION INTO ASIA - STRATEGIC RATIONALE For personal use only • 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 qual
Slide 14: Peel Health Campus WA
PEEL HEALTH CAMPUS WA For personal use only Peel Health Campus in South Perth, WA: − 152 bed public hospital − Located 70km south of Perth − Offers medical, surgical, maternity and rehabilitation services − Over 40,000 emergency presentations per annum − EPS neutral in FY 2014 and mildly accretive t
Slide 15: Clinique de l'Union, France
CLINIQUE DE L’UNION, FRANCE For personal use only Clinique de l’Union Toulouse, France: − Acquisition of approx. 90% of the operating business − 8 June 2013 completion − Property to be acquired by ICADE Santé − A leading 531 bed medical, surgical, obstetric hospital − 43,000 inpatients and 26,000 em
Slide 16: Industry Fundamentals
For personal use only Industry Fundamentals 16
Slide 17: Strong Industry Fundamentals - Global
STRONG INDUSTRY FUNDAMENTALS - GLOBAL For personal use only Growth in demand for health care will continue to be supported by: • Ageing population • Increased chronic disease burden • Increased expectations • Increased capabilities: – Surgical techniques – Devices – Pharmacology – Biotechnology 17
Slide 18: An Ageing World
AN AGEING WORLD For personal use only • By 2050, the number of people aged 65+ will total just under 1.5 billion, or 16% of the global total. In 1950, it was only 5%. (UN 2009). • This ageing population is without parallel in the history of humanity. 18
Slide 19: Global Market Trends in Healthcare
GLOBAL MARKET TRENDS IN HEALTHCARE For personal use only • Governments around the world are increasingly concerned about the rising costs of health care • Patients demanding and willing to pay for higher quality health care • Increasing GDP and affordability driving growth for private operators • Si
Slide 20: The Role of the Private Sector in Australia
The Role of the Private Sector in Australia Lge
Slide 21: Strong Industry Fundamentals
STRONG INDUSTRY FUNDAMENTALS For personal use only • Balanced health care system – Cultural – Political – Financial • Industry features – Respected private providers – Choice & access UNDERPINS ONGOING – Low cost attractive insurance product STRONG – Comprehensive cover PARTICIPATION – Community rat
Slide 22: The Role of the Private Sector in Australia
THE ROLE OF THE PRIVATE SECTOR IN AUSTRALIA For personal use only • Treat 43% of all hospital patients (3.6 million); • Provide 33% of all hospital beds; • Perform 66% of all elective surgery; • Of the 664 Diagnostic Related Groups undertaken in Australian public hospitals, 660 are performed in priv
Slide 23: The Role of the Private Sector in Public Healthcare
THE ROLE OF THE PRIVATE SECTOR IN PUBLIC HEALTHCARE For personal use only • In Australia, State governments are looking more to the private sector to build, own and operate public hospitals (eg Qld Health Blueprint) • State Governments are procuring more input from private sector in planning, buildi
Slide 24: Successful Public/Private Collaborations
SUCCESSFUL PUBLIC/PRIVATE COLLABORATIONS For personal use only • Joondalup Health Campus – 650 bed public/private hospital – $393m expansion completed in March 2013 – Largest hospital in Perth’s northern corridor – Agreement with WA government – Treated public & private patients since 1996 – In 2012
Slide 25: For personal use only
For personal use only 25
Slide 26: Summary of Market Dynamics
SUMMARY OF MARKET DYNAMICS For personal use only • Ageing demographic & growing disease burden - leading to increased demand for healthcare • Rising costs - leading governments across the globe to consider healthcare reform • Private sector offers efficient & effective models of healthcare delivery
Slide 27: Outlook
OUTLOOK For personal use only • Positive market dynamics indicate strong upside for Ramsay • Growing and ageing population will continue to drive our investment in capacity expansion • Remain positive about opportunities overseas including emerging markets and the opportunity to apply our proven hea
Slide 28: Questions
For personal use only QUESTIONS UBS Healthcare Conference June 2013
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