Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — Shareholder Meeting (November 2014)
29 slides from Ramsay Health Care's shareholder meeting presentation, Nov 13, 2014
Slide 1: Ramsay Health Care Annual General Meeting
For personal use only Ramsay Health Care Limited Annual General Meeting 13 November 2014 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only 1. FY2014 Year in Review 2. Segment Operational and Financial Highlights 3. Growth Strategy Update 4. Acquisitions 5. Outlook 2
Slide 3: FY2014 Year in Review
FY2014 Year in Review Ajuo sn jeuosied JO[
Slide 4: Ramsay Health Care: years in the private hospital industry
RAMSAY HEALTH CARE For personal use only • In 2014 Ramsay celebrated 50 years in the private hospital industry • 212 hospitals across 5 countries • 25,000 beds and places • Employs over 50,000 people • Admits almost 2.5 million patients per annum • In the top 5 private hospital operators in the worl
Slide 5: Paul Ramsay AO
PAUL RAMSAY AO For personal use only • Paul Ramsay, founder & Chairman passed away in May 2014 • The bulk of his estate will be of enduring benefit to the Australian community through the Paul Ramsay Foundation • It is intended that the Foundation will remain a significant long term shareholder of R
Slide 6: FY14 Financial Highlights
FY14 FINANCIAL HIGHLIGHTS For personal use only • Group Revenue – $4.9 billion 17.6% • Group EBIT – $580.4 million 19.6% • Core NPAT – $346.2 million 19.0% • Core EPS – 163.9 cents/share 20.6% • Final Dividend – 51.0 cents/share 22.9% (fully franked) • Full Year Dividend – 85.0 cents/share 20.6% (fu
Slide 7: FY14 Operational Highlights
FY14 OPERATIONAL HIGHLIGHTS For personal use only • Excellent operating performance across global portfolio • Acquired hospitals in France (Medipsy psychiatric group - December 2013) and Asia (JV with Sime Darby - July 2013) • Acquired the largest private hospital group in France, Générale de Santé
Slide 8: Employee Share Plan
EMPLOYEE SHARE PLAN For personal use only • New share plan recognises the key role employees play in our company • 13,800 employees are now participating in this share plan and have received $1,000 worth of free shares after 3 years with Company • 12,500 employees received a discretionary top-up of
Slide 9: Quality and Safety
QUALITY AND SAFETY For personal use only • Strong focus on safety and risk management for staff and patients • Transparent disclosure of clinical performance against industry benchmarks published on our website • We continue to achieve record breaking lows in long term injury frequency rates (LTIFRs
Slide 10: Delivering Strong Shareholder Returns
DELIVERING STRONG SHAREHOLDER RETURNS For personal use only Ramsay Total Shareholder Return(1) versus S&P/ASX 100 Accumulation Index Ramsay TSR Compound Annual Growth Rate (CAGR) 25.95% 07-Nov-14 5,212.4% S&P/ASX 100 Accumulation Index (CAGR) 8.8% 07-Nov-14 424.4% 23-Sep-97 07-Nov-14 RHC listed
Slide 11: Segment Operational and Financial Highlights
For personal use only Segment Operational and Financial Highlights 11
Slide 12: Operational Highlights – Australia and Asia
OPERATIONAL HIGHLIGHTS – AUSTRALIA AND ASIA For personal use only • Strong revenue and admissions growth in Australia • New $133m Joondalup Private Hospital and the $47m expansion of Greenslopes Private expansion made positive contributions to earnings in FY 2014 • Positive demographics and ageing p
Slide 13: Operational/Financial Highlights – United Kingdom
OPERATIONAL/FINANCIAL HIGHLIGHTS – UNITED KINGDOM For personal use only £365.6m £382.7m £31.8m £35.3m Jun'13 Jun'14 Revenue (£m) EBIT (£m) Ramsay UK performed strongly during the year with EBIT rising 11.1% to £35.3 million: − Substantial increase in NHS admissions in the year − EBITDAR margin incre
Slide 14: Operational/Financial Highlights – France
OPERATIONAL/FINANCIAL HIGHLIGHTS – FRANCE For personal use only Ramsay Santé 360 340 320 300 €323.5m 280 260 240 220 200 180 160 140 120 €174.3m 100 80 60 40 20 0 €26.2m -20 -40 €14.2m -60 Jun'13 Jun'14 Revenue (€m) EBIT (€m) Ramsay Santé performed well with EBIT increasing by 85% to €26.2 million:
Slide 15: Growth Strategy Update
For personal use only Growth Strategy Update 15
Slide 16: Our Formula for Success
OUR FORMULA FOR SUCCESS For personal use only • Strong Culture – ‘The Ramsay Way’ – 50 years of uninterrupted focus on clinical quality and safety – Long term stable and experienced Board, management and ownership • Strong and Sustainable Growth Strategy – Focus only on hospitals – Developed an expo
Slide 17: Brownfield Developments
BROWNFIELD DEVELOPMENTS For personal use only • Continued strong commitment to brownfield capacity expansion in FY14 with a further $172m brownfield developments approved in the year: NSW − St George Private Hospital: 3 operating theatres and additional beds − Lake Macquarie Private Hospital: emerge
Slide 18: Integration of New Facilities
INTEGRATION OF NEW FACILITIES For personal use only Strong admissions growth at Ramsay’s newest facilities: • Sunshine Coast University Private Hospital (Qld): opened December 2013 • Joondalup Private Hospital (WA): opened March 2013 • New wing at Greenslopes Private Hospital (Qld): opened March 201
Slide 19: Acquisitions
For personal use only 19
Slide 20: Expansion in France: Medipsy
EXPANSION IN FRANCE For personal use only Medipsy: • Acquired from Générale de Santé in December 2013 • Leading provider of mental health care in France with 30 hospitals • Clustered in a number of core regions giving them a strong local position • Ramsay now a leader in France (as well as Australia
Slide 21: Expansion in France: Générale de Santé
EXPANSION IN FRANCE For personal use only Générale de Santé: • Acquired a controlling interest on 1 October 2014 • Unique actionable opportunity to acquire a leader – largest in France with significant market share • Co-investment with our partner major French institution Crédit Agricole Assurances
Slide 22: Key Features of Générale de Santé
KEY FEATURES OF GENERALE DE SANTE For personal use only Market leader of the French private for-profit hospital sector REVENUES 2013 $ 1 2 1010 50 50 2 €1.7bn #1 PRIVATE HOSPITAL EBITDA CY2013 OPERATOR 13% market share €204m (12% margin) ADMISSIONS EMPLOYEES c.19,000 (including 11,000 c.1m admission
Slide 23: Creating the Clear Market Leader in France
CREATING THE CLEAR MARKET LEADER IN FRANCE For personal use only Following merger of Ramsay Santé into Générale de Santé 15% 13% 7% 6% 4% 4% 2% 2% 23
Slide 24: Asia
ASIA For personal use only • New joint venture with Sime Darby, commenced on 1 July 2013 • JV combines Sime Darby’s three Subang Jaya Medical Centre hospitals (and health care college) in K. L. Malaysia with Ramsay’s three hospitals in Indonesia • Successfully integrated and operating to expectation
Slide 25: China
CHINA For personal use only • Favourable demographics – 1.3 billion population – Growing middle class – Aging population • Largest economy in Asia – Growing at 7-9% pa • Positive outlook on Governments Healthcare Reform – Liberalising policies for foreign investors – Doctors able to practice in mult
Slide 26: Chengdu Opportunity
CHENGDU OPPORTUNITY For personal use only • Chengdu is a city of over 14 million people and is the capital of Sichuan Province, which has a population over 85 million Sichuan Province, China • Chengdu economy growing around 13% pa – Higher than national average • 50/50 JV between Jinxin and Ramsay S
Slide 27: Outlook
For personal use only Outlook 27
Slide 28: Outlook
OUTLOOK For personal use only • The ageing population will continue to present capacity expansion opportunities from which we expect ongoing benefits to flow • Utilising our global experience in acquiring and integrating hospitals, we will canvas further opportunities in new and existing markets • W
Slide 29: Questions
Questions AjuUO eSsn feuosied 105
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