Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Citi Inaugural Australian Investment Conference 2009
18 slides from Ramsay Health Care's conference presentation, Oct 19, 2009
Slide 1: Citi Inaugural Australian Investment Conference
For personal use only Citi Inaugural Australian Investment Conference 19 October 2009 Christopher Rex, Managing Director
Slide 2: Agenda
For personal use only AGENDA 1. About Ramsay Health Care 2. Recap FY 2009 results 3. Remarkable growth story 4. Operating environment - Australia and the UK 5. Strong and successful growth strategy 6. Demographic trends underpin future demand 7. Brownfields 8. Capital management 9. Outlook 2
Slide 3: Ramsay Health Care
For personal use only RAMSAY HEALTH CARE • Established in 1964 • Australia’s largest private hospital operator, approx. 30% market share • More than 100 hospitals and facilities ¾ 65 in Australia ¾ 3 in Indonesia ¾ 38 in the UK • Annualised revenues approx. $3.4 billion • In top 100 Australian-liste
Slide 4: Recap FY 2009 Results
For personal use only RECAP FY 2009 RESULTS Solid rise in Group core net profit, reflects continued strength of underlying business • Core Net Profit After Tax up 18.9% to $146.4 million • Core EPS up 22.1% to 74.1 cents • Group revenues up 20.6% to $3.2 billion • UK business continues to perform st
Slide 5: Operating Performance FY 2009
For personal use only OPERATING PERFORMANCE FY 2009 • Australia & Indonesia: ¾ Ramsay’s historical base operations, performed strongly on all operating levels ¾ Revenue up 10.7% to $2.5 billion ¾ Hospital admissions up 6% in Australia, up 14% in Indonesia ¾ Australian hospital EBITDA margins (excl.
Slide 6: Revenue Growth - Milestones
For personal use only REVENUE GROWTH - MILESTONES A$B 3.5 - Capio UK Acq. Nov’07 3.0 - Affinity Group Acq. Apr’05 - Benchmark Group Acq. Jul’04 2.5 - Greenslopes Major Expansion Opened May’03 2.0 Estimate - Hollywood Major Expansion Opened Jul’02 1.5 - Alpha Group Acq. May’01 1.0 - North Shore Priva
Slide 7: Growth Strategy Delivering Strong Results
GROWTH STRATEGY DELIVERING For personal use only STRONG RESULTS Core EPS more than doubled over the last four years 18.9% $146m 28 % pa $123m GR T CA N PA Core $110m $91m 22.1% pa R 20 % PS C AG Core E 74.1¢ 60.7¢ $54m 54.3¢ 45.3¢ 36.2¢ FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Core EPS (cents/share)
Slide 8: Growth Strategy Delivering Strong Returns
GROWTH STRATEGY DELIVERING For personal use only STRONG RETURNS 8
Slide 9: Operating Environment – Australia
OPERATING ENVIRONMENT – For personal use only AUSTRALIA • Balanced Health Care System – High proportion of provision by private providers – High proportion of funding from Government • Private hospitals a substantial part of Australian provider base – 40% of patients treated in hospital each year ar
Slide 10: Operating Environment – Australia
OPERATING ENVIRONMENT – For personal use only AUSTRALIA • General economy – Stimulus package will likely limit Government spending on hospital infrastructure going forward • Private health insurance – Minimal effect on membership from recent Federal Government changes to health insurance regulations
Slide 11: Operating Environment – UK
For personal use only OPERATING ENVIRONMENT – UK • Well-timed entry to radically changing market • Choose and Book (Choice of provider) – Continues to be a central part of provision • Potential NHS hospital divestments • Blended provider pattern emerging • General economy – Will have an impact on Go
Slide 12: Strong Growth Strategy
For personal use only STRONG GROWTH STRATEGY Ramsay has three major drivers of growth 1. Organic growth: ¾ Underpinned by demographic trends ¾ Quality portfolio of hospitals and continual business management improvement 2. Brownfields: ¾ Capacity increase aimed at satisfying unmet demand ¾ Investing
Slide 13: Growing Demand for Health Care – Australia
GROWING DEMAND FOR HEALTH CARE For personal use only – AUSTRALIA • Demographic trends to underpin future demand for hospital care over longer term – Ageing population: • Over 65s currently make up 13% of Australian population • By 2056, they will account for 25% of population – Growing Population: •
Slide 14: Growing Demand for Health Care – UK
GROWING DEMAND FOR HEALTH CARE For personal use only – UK • Ageing population: • By 2033, 23 per cent of the population will be aged 65 and over compared to 18 per cent aged 16 or younger • The fastest population increase has been in the number of those aged 85 and over • Growing Population: • UK po
Slide 15: Brownfields - Progress
For personal use only BROWNFIELDS - PROGRESS • All Australian brownfields projects previously announced to the market progressing well ¾ Approximately $300M of $580M (net) programme spent over 3 years on 20 facilities ¾ $150M spent on completed projects ¾ The first major project to become fully oper
Slide 16: Capital Management
For personal use only CAPITAL MANAGEMENT • Post capital raising, headroom of $650-750 million (after allowing for funding of current brownfield commitments) over the remaining 3 years of the facilities • Committed debt facilities of ~ $1.9 billion in place until November 2012 • Capital raising compl
Slide 17: Outlook
For personal use only OUTLOOK • Ramsay’s underlying business is in excellent shape • Strong organic growth to continue • Earnings from pipeline of quality brownfields projects to increase • Ramsay UK continues to grow • Actively researching acquisition opportunities in Europe • Capital raising furth
Slide 18: Questions
For personal use only Questions
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