Ramsay Health Care

ramsayhealth.com

Managing Director & CEO Craig McNally

14 November 2018

Ramsay Health Care Limited:

Annual General Meeting

Ramsay Health Care

Operations in FY’18

2

Hospital Beds

25,500

Admissions per annum

3,500,000

Facilities

235

Employees

64,000

Community

Franchise

Pharmacies

54In FY’18 Ramsay Health Care operated 235

hospitals, day surgery centres, treatment

facilities, rehabilitation & psychiatric units

across three continents, admitting 3.5 million

patients.

Hospitals & Facilities

Capio joins the

Ramsay network

3

In November 2018, the pan European

healthcare operator, Capio AB, joins the

Ramsay network.

Employees

13,500

Patient attendances per annum

5,100,000

Facilities

189

3 hospitals

43 specialist clinics

83 primary care

units

Sweden

8 hospitals


Norway

5 hospitals


7 primary care

units

Germany

19 hospitals


France

5 hospitals


Denmark

4

FY2018 Financial Highlights

REVENUE

$9.2 billion Up 5.4% on previous year

EBIT

$1.008 billionGroup earnings before interest &

tax up 6.8% on previous year

CORE NPAT

$579.3 millionCore net profit after tax up

6.8% on previous year

CORE EPS

279.8 centsCore earnings per share up 7.0% on

previous year

FULL YEAR DIVIDEND, FULLY FRANKED

144.0 centsFull year dividend (fully franked) up


5

Consistent history of earnings growth

412.1 481.4 542.7 579.3 196.6 231.4 261.4 279.8

FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18

Core Earning per Share (EPS)

(cents per share)Core Net Profit after Tax (NPAT)

(A$m)

Core NPAT up 6.8% to $579.3m Core EPS up 7.0% to 279.8¢

40.5 47.0 53.0 57.5

60.572.0

81.586.5

101.0

119.0

134.5144.0

FY'15 FY'16 FY'17 FY'18

Total Dividend

(cents per share)

Final dividend

(cents per

share)

Interim dividend

(cents per

share)

Total dividend

(cents per

share)

Full year dividend fully franked, up


Operating Environments

Australia

72Australia

Australian hospitals performing well despite

industry headwinds, demonstrating strength and

diversity of portfolio.

• Industry being impacted by affordability and

ongoing negative focus on private health insurance

• In FY’18 maintained admissions growth above

industry but below long term trend

• Admissions growth remains below our long term

average

• Lower growth from Australian brownfields in FY’18

- investment focus on upgrading existing facilities –

but approved record level of brownfields in FY’18

• Maintaining focus on innovation and cost

optimization strategies

• Long term industry fundamentals will continue to

drive demand for healthcare

7

France & Italy

Improvement in operating environment for

private hospitals in France.

• Overall admissions growth particularly in mental

health, ambulatory care and emergency

presentations

• Achieved a leadership position in digitalisation of

the patient journey, quality and safety

• Large scale restructuring programme to centralise

non-core hospital functions is on track

• Changes to health funding anticipated to align

with quality & value - RGdS is recognized as

“best in class” for quality & outcomes

8

119France

1Italy

United Kingdom

Challenging operating environment due to

NHS cost constraints and referral

management schemes.

• Significant downturn in NHS volumes

• Ramsay UK remains market leader in

electronic GP referrals

• Focused on clinical leadership & cost

efficiencies

• Significant extra funding recently

announced for NHS

9

34

United Kingdom

Asia

Growing markets, remains competitive.

• Strong operating performance

• Cost controls key focus area

• Ramp up of brownfield developments

• A long term growth opportunity

10

3Indonesia

3Malaysia

Group Initiatives

12

Strengthening the core: strong efficiency agenda

Operational Excellence

Implementation of LEAN to

optimise workforce planning

and theatre utilisation

RGdS clustering & centralised

support centres

KPI benchmarking dashboards

and apps

Digitalisation

RGDS digitalised patient

pathway improving access

Specialist profile search engine

App providing patient

information to doctors’ mobiles

Electronic patient record rollout

in UK

Global Procurement

Strong partnerships with local

and global suppliers

Continuing to drive

benefits from procurement

strategy

Launched Ascension JV

13

Building a sustainable organisation

Patient & Doctor Experience

Rolled out NPS

Investment in our facilities

Speaking up for Safety

Digital solutions for patients

Fast and secure WiFi rollout

Clinical Excellence

Data collection & benchmarking

Developing leading

clinical trials network

‘Centre of Excellence’

accreditation in our

leading institutions

Investment in research

Innovation

Innovation Units created in

France and Australia

Targeting services beyond

hospital walls

App for doctors - real-time

patient information via mobile

Telemedicine services for

clinical review of complex

remote cases

Developing our Staff

Group Chief People Officer

appointed

Global talent development

programmes

Executive Leadership

Development Programme

Best in industry LTIFR rates

Medical Research/Teaching & Training

Growth Strategy

16

Global Industry Fundamentals

The number of people aged over 65 has increased

to more than 656 million, or 11.5% of the total

population

Globally, chronic disease prevalence is growing

quickly, most prominently, cancer, heart disease, and

diabetes. 415M diabetics in 2018 expected to

increase to 642M by 2040.

Depression is the leading cause of ill health and

disability worldwide. More than 300 million people are

now living with depression, an increase of more than

18% between 2005 and 2015

• In all regions, health

spending is rising as

populations grow and age,

technologies improve and

patients become better

informed.

• Demand for health care is

going to rise faster than the

capacity of the sector itself.

17

Delivering on our growth strategyContinuing to create shareholder value through our focused strategy

ORGANIC

GROWTH

Underpinned by

demographics, quality

portfolio of hospitals,

ongoing business

improvement and

volume expansion.

BROWNFIELD

CAPACITY

EXPANSION

Local market knowledge

drives business cases.

We build capacity aimed

at satisfying unmet

demand. Apply strong

financial discipline.

PUBLIC/PRIVATE

COLLABORATION

S

Global focus on

increasing private

sector role

in service provision

for publicly funded

patients.

ACQUISITIONS

Exploring acquisitions

in existing and new

markets Ramsay has

proven it can export

its management model

Must add long-term

value to shareholders.

NEW PLATFORMS

FOR GROWTH

Opportunities arising to

supplement our core

strategy by developing and

delivering integrated care to

patients across an

increasingly disperse health

ecosystem.

Brownfields

Projects in FY’18

20

Brownfield Projects FY’18

Completed Projects:

$171m gross

capital

investment

208 Gross beds 204 Conversions2

4 Net beds

21 consulting

suites,

7 operating

theatres

$325m gross

capital

investment

340 Gross beds 111 Conversions

229 Net beds

39 consulting

suites

24 operating

theatres

Board Approved Projects during the period:

21

Brownfields completing in FY’19Most benefits expected from FY’20 onwards.

$242.0m gross

capital

investment

333 Gross beds 117 Conversions

216 Net beds

30 consulting

suites

15 operating

theatres

1 emergency

department

Acquisitions

• Ramsay’s 51% listed French subsidiary Ramsay Générale de

Santé (RGdS) Offer for Nasdaq Stockholm-listed Capio AB

(publ.) (Capio) received successful acceptance from Capio

shareholders holding approximately 98.51% of the shares in

Capio, at the close of the extended offer period on 7 November

• Unconditional clearance has been received from the French

Competition Authority & all conditions for completion of the Offer

were satisfied

• Settlement occurred on 7 November 2018 at which stage,

Capio became a majority-owned subsidiary of Ramsay

Générale de Santé

23

Capio Acquisition

Key benefits of the transaction

Acquisition of Capio’s integrated healthcare network is consistent with Ramsay Health Care’s strategy to grow both its hospital and out-of-hospital businesses

Consistent with our strategy to grow our global portfolio in new markets and where it is a strategic fit:

• Capio is a leading and quality provider of healthcare services in Europe with a well-balanced geographic footprint across 5 countries, operating in stable markets with strong industry fundamentals

• Holds market leadership positions

• Leader in driving value-based healthcare, digitalisation and specialisation

• High performing French operations and strong presence in Toulouse & Lyon, enhancing RGdS cluster strategy

Provides a gateway for further bolt-on acquisitions in the Nordics

Core EPS accretive within 2 to 3 years

24

25

Expanded European footprint Combined geographical footprint with strong positions in key European markets.

Revenue: €117m

Patients (#, k): 247

FTEs (#): 1,224

Location (#): 16

Revenue: €2,780m

Patients (#, k): 2,759

FTEs (#): 27,292¹

Location (#): 141

Revenue: €24m

Patients (#, k): 6

FTEs (#): 198

Location (#): 1

Ramsay Générale de Santé presence

Capio location

RHC UK presence

Ramsay Générale de Santé location

Jun-18 LTM figures for RGdS, Capio and Ramsay Health Care UK

Based on spot FX rates as of 26/10/2018 (EUR/AUD of 1.61 and EURSEK of 10.39)

1. Not including c.1,000 self-employed doctors at Capio and 6,000 self-employed doctors at RGdS

Revenue: £424m

Patients (#, k): 200

FTEs (#): 4,324

Location (#): 34

Ramsay Health Care UK location

Revenue: €871m

Patients (#, k): 4,077

FTEs (#): 6,556

Location (#): 151

Ramsay Health Care’s

Global Network post

acquisition

26

With Capio, Ramsay Health Care’s global

network extends across 11 countries, with 8.5

million admissions/patient visits to its facilities

in c480 locations. The combined entity

employs 77,000 staff.

Hospitals & Facilities

Employees

77,000

Locations

480Revenue (AUD)

$11.6B

Countries

11

Patient visits/admissions

8,500,000

Outlook

Outlook

• In FY’18 we focused on strategies to strengthen our business for the long term

including large scale cost optimisation programmes as well as investment in people,

innovation, facility enhancement and growth initiatives, and these are ongoing into

FY’19.

• We expect growth initiatives including brownfields and investments aimed at

strengthening our business, to contribute strongly to earnings beyond FY’19.

• Neutral impact from Capio acquisition in FY’19.

• Barring unforeseen circumstances, Ramsay continues to target positive Core EPS

growth of up to 2% in FY’19.

28

Documents

Ramsay Health Care