Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — 7th Annual Investment Conference, London 2010
21 slides from Ramsay Health Care's conference presentation, Mar 10, 2010
Slide 1: Ramsay Health Care
For personal use only Ramsay Health Care Christopher Rex, Managing Director Australia and New Zealand 7th Annual Investment Conference London 9 March, 2010
Slide 2: Disclaimer
For personal use only DISCLAIMER • This Presentation has been prepared by Ramsay Health Care Limited (ACN 001 288 768) (RHC). • The material that follows is a presentation of general background information about RHC current at the date of the presentation, 9 March 2010. The statements are made only
Slide 3: Agenda
For personal use only AGENDA • About Ramsay Health Care • Remarkable growth story • French acquisition – Proclif overview • Rationale for offshore expansion • Formula for success • Recap Dec 09 half-year financials • Capital management • Determinants of future growth • A global vision • Outlook 1
Slide 4: About Ramsay Health Care
For personal use only ABOUT RAMSAY HEALTH CARE • Established in 1964 • Listed on the Australian Stock Exchange in September 1997 • Since become Australia’s largest private hospital operator, approximately 30% market share • In top 100 Australian-listed companies by market capitalisation • Expanded o
Slide 5: Remarkable Growth Story
For personal use only REMARKABLE GROWTH STORY AT LISTING TODAY (Sept 1997) 117 hospitals and facilities 11 hospitals • 65 in Australia • 3 in Indonesia • 40 in the UK • 9 in France More than 9,300 beds 1,351 beds • 6,580 in Australia • 615 in Indonesia • 1,155 in the UK • 978 in France Annual revenu
Slide 6: Australia & Indonesia
For personal use only AUSTRALIA & INDONESIA Ramsay Health Care is Australia’s largest operator of private hospitals • Australia – 65 Western Australia - 4 South Australia - 3 Victoria - 16 New South Wales - 27 Queensland - 15 • Indonesia – 3 4
Slide 7: United Kingdom
For personal use only UNITED KINGDOM England • 40 hospitals and facilities spread across the country 5
Slide 8: France
FRANCE Group Proclif: nine hospitals, 978 beds in greater Paris region (Île-de-France) For personal use only Clinique Lambert CMC Val Notre Dame 127 beds Bezons Asnieres 83 beds 57 beds Clinique de la Montagne 80 beds Clinique de la Muette 83 beds Clinique des Franciscaines 145 beds CMCO Evry (Mouss
Slide 9: Revenue Growth Milestones
REVENUE GROWTH MILESTONES For personal use only A$B Proclif acquisition expected to 4.0 complete end March 2010 3.5 - Capio UK Acq. Nov’07 Estimate/Proforma including Proclif 3.0 - Affinity Group Acq. Apr’05 - Benchmark Group Acq. Jul’04 2.5 - Greenslopes Major Expansion 2.0 Opened May’03 Estimate -
Slide 10: Growth Strategy Delivering Strong Returns
For personal use only GROWTH STRATEGY DELIVERING STRONG RETURNS Source: Citi 8
Slide 11: Proclif Acquisition Details
PROCLIF ACQUISITION DETAILS • Acquisition of 57% interest in Proclif, the second largest For personal use only private hospital group in the Paris region, for €87m ($142m). Remaining 43% interest held by Predica (wholly owned subsidiary of Crédit Agricole) • Enterprise value of €172m ($281m) • Reven
Slide 12: Why Proclif?
WHY PROCLIF? The acquisition of Proclif is a key enabler to Ramsay’s French For personal use only expansion strategy and establishes a solid platform for future growth • Second largest private hospital operator in the greater Paris region Well- • Nine specialist hospitals benefiting from significant
Slide 13: Rationale for Offshore Expansion
For personal use only RATIONALE FOR OFFSHORE EXPANSION • Competition constraints means it is difficult for Ramsay to make significant hospital acquisitions in Australia • Ramsay can export its proven management model and blend it with local expertise and has demonstrated this in the UK – Ability to
Slide 14: Formula for Success
FORMULA FOR SUCCESS • Management and culture For personal use only – Long term, stable management team, special culture (“The Ramsay Way”), industry leaders • Strong growth strategy – Organic – Brownfield investment ($675M gross approved for expansion in Australia, £28M in the UK) – Acquisitions – U
Slide 15: Recap of Dec Half-Year Financials
For personal use only RECAP OF DEC 09 HALF-YEAR FINANCIALS Strong rise in Group core net profit for six months ended 31 December 2009, reflects underlying strength of the business • Core net profit after tax* up 32.7% to $91.1 million • Core EPS* up 32% to 44.6 cents • Australia and Indonesia revenu
Slide 16: Group Core EPS and Dividend Growth
GROUP CORE EPS AND DIVIDEND GROWTH June Half December Half For personal use only 32% 44.6¢ 40.4¢ 33.8¢ 30.3¢ 30.4¢ 26.7¢ 21.5¢ 12.1% 17.5¢ 18.5¢ 16¢ 16.5¢ 15¢ Jun'07 Jun'08 Jun'09 Dec'07 Dec'08 Dec'09 Core EPS (cents/share) Dividend (cents/share) • Core EPS up 32% to 44.6 cents from 33.8 cents in th
Slide 17: Capital Management
CAPITAL MANAGEMENT Affinity For personal use only Acquisition Debt profile • Committed senior bank debt facilities of ~ $1.9 billion in Capio Acquisition place until November 2012 • Successfully completed $260M Proclif equity raising (Sept/Oct 2009) Acquisition • Headroom of $500M-$600M Equity Raisi
Slide 18: Determinants of Future Growth
For personal use only DETERMINANTS OF FUTURE GROWTH Expanding population TO PROPEL Ageing population INEVITABLE INCREASE Generational demand IN DEMAND FOR HEALTH CARE Increase in chronic diseases PROVISION FOR THE NEXT 4O YEARS Technology 16
Slide 19: A Global Vision
For personal use only A GLOBAL VISION Becoming a major global hospital operator 17
Slide 20: Outlook
For personal use only OUTLOOK • Continuing strategy to become a major global hospital operator • Business in excellent shape • Demographic pressures to drive growth in health care demand over medium and longer term • Seeking expansion and acquisition opportunities in the UK, France and other markets
Slide 21: Questions
For personal use only QUESTIONS
Ramsay Health Care — 7th Annual Investment Conference, London 2010 on 6ix