Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (November 2007)
29 slides from Ramsay Health Care's shareholder meeting presentation, Nov 20, 2007
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 20 November 2007
Slide 2: 2007 Financial Year Overview
2007 FINANCIAL YEAR For personal use only OVERVIEW • Strong profit growth with hospital margin improvement • Very pleasing result – Core EPS up 21%, ahead of guidance of 15%-20% growth • Hospitals performed strongly in every state • Growth achieved despite impact from treating fewer veterans after p
Slide 3: 2007 Financial Performance
For personal use only 2007 FINANCIAL PERFORMANCE Year Ended 30 June 2006 2007 $m $m % incr. Continuing Operations: EBITDA 252.3 273.4 8% EBIT 194.2 212.5 9% Core NPAT – continuing operations 91.9 110.9 21% 22% Net Profit after Tax 87.6 107.1 Core EPS – continuing operations 45.3c 54.9c 21% (‘Core Ne
Slide 4: Core EPS Growth
For personal use only CORE EPS GROWTH 4
Slide 5: Celebrating 10 Years
For personal use only CELEBRATING 10 YEARS • 2007 marks 10 years since Ramsay Health Care listed on the ASX. • At listing, Ramsay had: ¾ 11 hospitals ¾ 1,351 hospital beds ¾ 2,000 staff ¾ Annual revenues of $193 million • Listing strengthened our growth potential…. 5
Slide 6: Remarkable Transformation 10 Years Ago Today
REMARKABLE For personal use only TRANSFORMATION 10 YEARS AGO TODAY More than 100 hospitals and facilities 11 hospitals • 65 in Australia • 3 in Indonesia • 33 hospitals and day surgery facilities in the UK 1,351 beds More than 8,000 beds •7,067 in Australia and Indonesia •1,020 in the UK 2,000 staff
Slide 7: Now an Industry Leader
For personal use only NOW AN INDUSTRY LEADER • Since listing, Ramsay has ¾ Grown to become Australia’s largest private hospital operator ¾ 28% of Australian private hospital market ¾ Led the way in developing the role of the private health care system in a balanced system ¾ Recently acquired 4th lar
Slide 8: Where We Operate – Australia/Indonesia
WHERE WE OPERATE – AUSTRALIA/INDONESIA For personal use only 88
Slide 9: Where We Operate – United Kingdom
WHERE WE OPERATE – UNITED KINGDOM For personal use only England – • 22 hospitals • 9 day surgery facilities • 2 neuro-rehabilitation homes • Eye Clinic • Diagnostic services 9
Slide 10: Where We Earn Our Revenue
WHERE WE EARN OUR REVENUE For personal use only 2.76% 16.11% 32.39% 21.84% 26.95% NSW Qld Vic WA/SA Indonesia * Capio UK will make up nearly one quarter of our revenues 10
Slide 11: Strong Growth Strategy
For personal use only STRONG GROWTH STRATEGY • Organic growth ¾seeking to optimise growth at existing hospitals • Investing in existing business ¾Improving the quality of our facilities and acuity of our hospitals ¾Brownfield expansion programme • Acquisitions – hospitals and close to our core compe
Slide 12: Revenue Growth – Milestones
For personal use only REVENUE GROWTH – MILESTONES A$m Capio UK Acq. 2007 3,000 Affinity Group Acq. Apr’05 2,800 2,600 Benchmark Group Acq. Jul’04 2,400 Greenslopes Major Expansion Opened May’03 2,200 2,000 Hollywood Major Expansion Opened Jul’02 1,800 Alpha Group Acq. May’01 1,600 1,400 North Shore
Slide 13: Growth Strategy Delivering Strong Returns
GROWTH STRATEGY DELIVERING For personal use only STRONG RETURNS 13
Slide 14: What Is the Key to Ramsay's Success?
WHAT IS THE KEY TO RAMSAY’S For personal use only SUCCESS ? • Clear strategy • Strong management : experienced and committed • Our culture ¾“The Ramsay Way” ¾Ramsay’s management principles • Strong relationship builders • Industry leaders in all we do ¾Education, medical teaching and nurse training
Slide 15: Ramsay's Vision for the Future
RAMSAY’S VISION FOR THE For personal use only FUTURE Ramsay’s well-planned growth strategy will create a world class company ¾ Continuing strong organic growth ¾ Building mega referral centres across the country (through brownfield expansions), reinforcing Ramsay’s leading position in Australia ¾ Of
Slide 16: Organic Growth
For personal use only ORGANIC GROWTH Continue to grow earnings at hospital level ¾Solid organic growth to continue ¾Strategy to manage veterans’ hospital transition ¾Further benefits from Affinity expected 16
Slide 17: Mega Referral Centres
For personal use only MEGA REFERRAL CENTRES • Ramsay has approved approx. $550 million capex and earmarked additional funds to create mega referral centres across the country which will: ¾ Offer multiple specialities ¾ Provide high acute care and extensive diagnostic services ¾ Attract leading docto
Slide 18: Mega Referral Centres – Approved
MEGA REFERRAL CENTRES – For personal use only APPROVED • Already approved for expansion: ¾ Hollywood (Perth) ¾ Joondalup (Perth) ¾ Greenslopes (Brisbane) ¾ North West (Brisbane) ¾ John Flynn (Gold Coast) 18
Slide 19: Mega Referral Centres – Advanced Feasibility
MEGA REFERRAL CENTRES – For personal use only ADVANCED FEASIBILITY • Mega referral centres at advanced feasibility stage: ¾ Pindara (Gold Coast) ¾ North Shore (Sydney) ¾ Westmead (Sydney) ¾ St George (Sydney) ¾ Warringal (Melbourne) 19
Slide 20: Ramsay Ready to Go Global
For personal use only RAMSAY READY TO GO GLOBAL RAMSAY CAN BE SUCCESSUL OFFSHORE ¾Ability to run our business on relatively low revenue base ¾Ability to generate good returns from running a cost efficient business ¾Excellent marketing skills help us grow patient volumes 20
Slide 21: Offshore Expansion – Where Are We Looking?
OFFSHORE EXPANSION – For personal use only WHERE ARE WE LOOKING? • Asia : high growth potential but purchase multiples too high • US : good dynamics but currently too volatile • Focusing efforts on expansion in the UK due to privatisation opportunities in NHS 21
Slide 22: Offshore Expansion – Driven by Capio UK
OFFSHORE EXPANSION – For personal use only DRIVEN BY CAPIO UK • Capio UK presents significant growth opportunities for Ramsay and marks the beginning of a global expansion strategy • Capio UK provides entry to the UK market Stable Private Medical Insurance (PMI) market Government initiatives ¾Mo
Slide 23: What Is Capio UK?
For personal use only WHAT IS CAPIO UK? • 4TH largest operator of private hospitals in the UK • Diverse business and revenue source 22 private hospitals across England with 854 beds and 48 operating theatres 9 Independent Sector Treatment Centres (ISTCs) 2 neurological rehabilitation homes 2
Slide 24: Our Future Challenges
OUR FUTURE CHALLENGES For personal use only CHALLENGES SOLUTIONS Leadership: Management Internal HR programme multi-level leadership development Industry Industry leadership to determine our future Skills shortage Employer of Choice – “The Ramsay Way” Nurses Nurse training schools Medical Medical te
Slide 25: Our Future Challenges
For personal use only OUR FUTURE CHALLENGES CHALLENGES SOLUTIONS Unmet demand through Brownfield expansions ageing population Industry credibility Teaching and research Corporate social Significant funding commitments e.g. responsibility Schizophrenia Research Institute, Intensive Care Foundation Sp
Slide 26: Bright Future – Australia
For personal use only BRIGHT FUTURE Australia • Ramsay is growing in a dynamic industry ¾Population is ageing ¾Private health insurance membership growing ¾Solid organic growth ¾Brownfields expansion producing mega referral centres in next 3-5 years 26
Slide 27: Bright Future – Overseas
For personal use only BRIGHT FUTURE Overseas • Capio UK presents significant growth opportunities • Investigating bolt-on acquisitions with quick EPS growth • Privatisation occurring in various markets around the world, Ramsay’s model can be successfully exported • In the next five years Ramsay’s of
Slide 28: Outlook
For personal use only OUTLOOK • Existing core business tracking well for low double-digit growth in FY08 • Capio UK core EPS accretive in 2nd full year and beyond 28
Slide 29: Questions
For personal use only QUESTIONS
Ramsay Health Care — Shareholder Meeting (November 2007) on 6ix