Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Macquarie Australia Conference 2013
28 slides from Ramsay Health Care's conference presentation, May 2, 2013
Slide 1: Ramsay Health Care – Macquarie Australia Conference
For personal use only Ramsay Health Care Macquarie Australia Conference 2 May 2013 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only 1. Ramsay Health Care – Overview 2. Growth Story & Formula for Success 3. Half-year Group Operational & Financial Highlights 4. Half-year Operational & Financial Highlights - by Region 5. Development Update: – Ramsay Sime Darby joint venture – Peel Health Campus – Brownf
Slide 3: 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 118 hospitals & facilities across 4 countries – 10,000 beds – 30,000 staff – Treating over 1 million patients per annum – Extensive education & training, in
Slide 4: For personal use only
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Slide 5: Consistently Delivering Strong Total Shareholder Returns (TSR)
CONSISTENTLY DELIVERING STRONG TOTAL SHAREHOLDER RETURNS (TSR) For personal use only Compound Annual Rate of Growth over 15½ years 11-Apr-13 2,959% Ramsay Health Care TSR 24.6% Vs. S&P/ASX 100 Acc. Index 9.2% 11-Apr-13 295% * * Ramsay Health Care listed on ASX – 23 September 1997 Source: FactSet, Ma
Slide 6: Ramsay Health Care – TSR Alpha Performance
RAMSAY HEALTH CARE – TSR ALPHATM PERFORMANCE For personal use only • Ramsay ranked(1) third in a survey of Australian ASX100 companies, in terms of TSR AlphaTM performance over the five-year period to 31 December 2012 • The TSR AlphaTM scorecard is a stand alone metric that takes into account : – To
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 Poten
Slide 9: Geographical Segments
GEOGRAPHICAL SEGMENTS For personal use only Operating Revenue EBITDAR 5% 4% 13% 19% 82% 77% Asia Pacific* Asia Pacific* United Kindom United Kingdom France France Strong Australian business is the largest contributor to earnings and cash flow * Asia Pacific currently includes Australia and Indones
Slide 10: For personal use only
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Slide 11: Financial Highlights - 1st Half FY 2013
FINANCIAL HIGHLIGHTS - 1ST HALF FY 2013 For personal use only • Group Revenue – $2.1 billion 5.2% • Group EBIT – $248.4 million 8.8% • Core NPAT – $148.2 million 12.3% • Core EPS – 69.1 cents/share 13.7% • Interim Dividend – 29.0 cents/share 13.7% (fully franked) • Guidance for Core NPAT and Core EP
Slide 12: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only • Results reflect solid performance across worldwide portfolio • Completed brownfield capacity expansion projects meeting growing demand and adding to EBIT and EPS • In Australia, private health insurance membership remains strong (46.9% with hospital tre
Slide 13: Leverage & Cash Management
LEVERAGE & CASH MANAGEMENT Leverage Cash Flow For personal use only 6X Affinity $m Acquisition $1.4b 5.1 350 5X Capio UK 300 Acquisition £193m 4X 3.7 Ramsay Santé 250 3.3 Acquisition €87m 3X 200 2.4 2.7 2.7 1.9 150 2X 1.5 1.5 Dec'11 Dec'12 Gross Operating Cash Flow 1X FY05 FY06 FY07 FY08 FY09 FY10 F
Slide 14: Half Year Operational & Financial Highlights by Region
Half Year Operational & Fi ! | & Financial Highlights — — . y Region oe 14
Slide 15: Operational/Financial Highlights – Australia
OPERATIONAL/FINANCIAL HIGHLIGHTS – AUSTRALIA For personal use only • Revenue up 7% to $1.66 billion • EBIT up 10% to $219 million • Australian hospital EBITDA margin up 50 bpts to 18.6% • Private health insurance (PHI) membership remains strong despite challenges presented by changes to PHI policy r
Slide 16: Operational/Financial Highlights – Europe
OPERATIONAL/FINANCIAL HIGHLIGHTS – EUROPE For personal use only Ramsay UK • Revenue up 1.5% to £179 million • EBITDAR up 1.5% to £45 million • EBITDAR margin remains strong at 25% • Private Medical Insured admissions remain subdued but continued growth from NHS admissions with 9% growth over the pre
Slide 17: Sunshine Coast University Private Hospital
For personal use only Sunshine Coast University Private Hospital 17
Slide 18: Further Expansion of Footprint into Asia
FURTHER EXPANSION OF FOOTPRINT INTO ASIA For personal use only Joint venture agreement with Sime Darby announced on 26 March 2013 • The joint venture will combine Ramsay’s three hospitals in Indonesia with Sime Darby’s healthcare portfolio under a new JV company to be known as Ramsay Sime Darby Heal
Slide 19: Joint Venture with Sime Darby
JOINT VENTURE WITH SIME DARBY For personal use only Ramsay Health Care Sime Darby 50% 50% JV Company Ramsay Sime Darby Health Care RS Premier Jatinegara SDMC Subang Jaya Ramsay Health Care Sime Darby Healthcare 3 Indonesian Hospitals 3 Malaysian Hospitals Nursing & Health Science College SDMC Ara Da
Slide 20: 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 21: Peel Health Campus WA
PEEL HEALTH CAMPUS WA For personal use only Ramsay has entered into agreement to acquire 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 pa − EPS neu
Slide 22: Brownfield (Capacity Expansion) Developments
BROWNFIELD (CAPACITY EXPANSION) DEVELOPMENTS For personal use only • Proven track record of undertaking successful brownfield expansion • Extensive programme of hospital redevelopments & expansions currently underway • Approximately $95 million spent on brownfield projects in the half year. A furthe
Slide 23: Brownfield Development Update
BROWNFIELD DEVELOPMENT UPDATE For personal use only Warringal Private Hospital, Melbourne: – $56 million • Re-development and major expansion • 62 new private beds • 5 additional operating theatres • Day surgery, recovery units – When completed, Warringal Private Hospital will have 205 private beds
Slide 24: Major Projects
MAJOR PROJECTS For personal use only • New 145-bed private hospital at Joondalup Health Campus – opened March 2013, completing the final stage development on this site • $47 million expansion of Greenslopes Private with additional 60 beds, 4 operating theatres and obstetric services – opened March 2
Slide 25: For personal use only
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Slide 26: Global Market Trends in Health Care
GLOBAL MARKET TRENDS IN HEALTH CARE For personal use only • Growing and ageing population will continue to drive demand for health care • Governments increasingly concerned about the rising costs of health care • Patients demanding and willing to pay for higher quality health care • Increasing GDP a
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 Macquarie Australia Conference - 2 May 2013
Ramsay Health Care — Macquarie Australia Conference 2013 on 6ix