Renal Care — Investor Presentation (March 2005)
26 slides from Renal Care's investor presentation, Mar 3, 2005
Slide 1: Renal Care Group
( )Renal Care Group NYSE: RCI
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the information included in this presentation is forward-looking information and is given in reliance on the Safe Harbor provided by the Private Securities Litigation Reform Act. These forward-looking statements involve risks and uncertainties. Our actual results c
Slide 3: Key Investment Points
KEY INVESTMENT POINTS Correlation between quality care and financial results Predictable and recurring revenues Prudent capital structure and strong free cash flow Selective acquisition opportunities
Slide 4: Renal Care Group Profile
RENAL CARE GROUP PROFILE Specialized provider of dialysis services Physician-driven heritage Strong regional market presence Conservative financial management Commitment to quality care drives value creation
Slide 5: Dialysis Industry
DIALYSIS INDUSTRY
Slide 6: U.S. Dialysis Providers
U.S. DIALYSIS PROVIDERS 300,000 patients 9% 18% 12% 3% 27% 31% DaVita* Renal Care Group Hospitals Other Independent Providers Independent Chain Providers Fresenius *Assumes completion of acquisition of Gambro's US dialysis business
Slide 7: Company Information
COMPANY INFORMATION (Renal Care Group
Slide 8: Locations
LOCATIONS 34 states Mid-size markets Outpatient Dialysis Centers University Affiliations Corporate Office Nashville, Tennessee
Slide 9: Growth Strategy
GROWTH STRATEGY Expand within existing footprint - Organic growth - De novo development - Selective acquisitions Affiliate with excellent physicians Adhere to core competencies
Slide 10: Strategies for Delivering Long-Term EPS Growth
STRATEGIES FOR DELIVERING LONG-TERM EPS GROWTH Long-Term EPS Growth Target 15% Acquisitions Pricing Volume Share Repurchases
Slide 11: Operating Strategy
OPERATING STRATEGY (Renal Care Group
Slide 12: Operating Strategy
OPERATING STRATEGY Optimal care drives superior financial results Clinical objectives aligned with financial interests Medical Advisory Board sets best practices Benchmarking across the Company Continuously improving outcomes Above industry average clinical outcomes
Slide 13: Kt/V Levels
KT/V LEVELS % of Patients with Kt/V > 1.4 * Does not include former NNA operations 1996 1997 1998 1999 2000 2001 2002 2003 Q104 Q204 Q304 Q404 70.8 64.7 80.9 74.3 81.7 79.8 84.5 83.1 84.9 84.3* 83.6* 86.1*
Slide 14: Hematocrit
HEMATOCRIT 1996 1997 1998 1999 2000 2001 2002 2003 Q104 Q204 Q304 Q404 53.2 56.2 71.8 65.9 75.5 72.7 77.8 76.6 76.2 78.1* 78.4* 78.4* Patients with Hct > 33% Goal of 75% * Does not include former NNA operations
Slide 15: Hospitalization
HOSPITALIZATION Hospital Days / Patient / Year *Does not include former NNA operations ** Based on latest annual data - 2002 RCI "Rolling" Twelve Months 12.6* National Average** 14.5
Slide 16: Mortality
MORTALITY RCI "Rolling" Twelve Months 21.6%* National Average** 23.3% * Does not include former NNA operations ** Based on latest annual data - 2002
Slide 17: Clinical Initiatives
CLINICAL INITIATIVES Options Education RightStart Nephrologist Primary Care Physician ESRD Chronic Kidney Disease Type of Patients Diabetic Hypertensive CKD Program Vascular Access Diet and B/P Control Reduce Mortality Physician Value- Added Services Productivity/Work Redesign Case Management - - Di
Slide 18: Financial Information
FINANCIAL INFORMATION
Slide 19: Revenue Trends
REVENUE TRENDS 1996 1997 1998 1999 2000 2001 2002 2003 2004 $130 $214 $369 $521 $625 $755 $903 $1,005 $1,345 (Revenue in $ millions) CAGR 36%
Slide 20: Payor Mix
PAYOR MIX Private Medicare 49% 4% 4% 43% Medicaid Acute Revenue
Slide 21: Challenges
CHALLENGES Medicare Managed Care Pricing Competition
Slide 22: Earnings Per Share Trends
EARNINGS PER SHARE TRENDS 1996 1997 1998 1999 2000 2001 2002 2003 2004 $0.28 $0.38 $0.56 $0.75 $0.87 $1.01 $1.21 $1.41 $1.74 CAGR 25%
Slide 23: 2005 Corporate Goals
2005 CORPORATE GOALS Hematocrit Level 75% of patients over 33% Kt/V 85% of patients over 1.4 Revenues $1.5 - $1.6 billion Earnings per Share $1.95 - $2.05 Same-Market Treatment Growth 3% - 5% Same-Market Revenue Growth 5% - 8% Patients 32,500 - 33,500 Treatments 4.7- 4.9 million Capital Expenditures
Slide 24: Free Cash Priorities
FREE CASH PRIORITIES Share repurchase program De novo development
Slide 25: Key Investment Points
KEY INVESTMENT POINTS Correlation between quality care and financial results Predictable and recurring revenues Prudent capital structure and strong free cash flow Selective acquisition opportunities
Slide 26: Renal Care Group
( )Renal Care Group NYSE: RCI -END-
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