Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — UBS Healthcare Conference 2003
11 slides from Ramsay Health Care's conference presentation, Oct 28, 2003
Slide 1: UBS Healthcare Conference - October 2003
UBS Healthcare Conference - October 2003 Pat Grier (Managing Director)
Slide 2: Highlights FY 2003
Highlights FY 2003 Net profit up 19%, building on record profit growth of previous 2 years Group EBIT growth up 14% (11% excluding acquisitions) ¾ Expansion program accounted for 6% EBIT growth ¾ Organic growth accounted for 5% EBIT growth Strong result underlines strength and importance of Ra
Slide 3: Financial Performance FY 2003
Financial Performance FY 2003 Year Ended 30 June 2002 2003 % Inc. $m $m Operating Revenue 549.8 662.2 20% EBITDA 80.8 91.0 13% EBIT 58.4 66.4 14% Profit before tax 43.6 53.5 23% NPAT 31.1 37.1 19% EPS (cents/share) 24.5¢ 28.9¢ 18% Full year Dividend 11.0¢ 15.5¢ 41% (cents/share) (Unfranked) (Franked
Slide 4: DVA Contract
DVA Contract Ramsay Health Care will continue to have a contract with DVA for services to veterans at Greenslopes and Hollywood post-2006 Facilitates the continuation of vital service to veterans Greenslopes and Hollywood will continue as major providers of hospital services to veterans in Per
Slide 5: Response to Industry Issues
Response to Industry Issues Health Fund negotiations ¾ Ramsay’s positive relationships ¾ Aim to cover cost increases Medical Indemnity ¾ Ramsay’s excellent risk management record in keeping down claims and premiums ¾ Ramsay is leading the way in hospital related tort law reform Nurse Shortages
Slide 6: Strategy
Strategy 1. Organic Growth: ¾ Continuing to focus on the management of our existing hospitals (5% EBIT growth in F Y 2003) ¾ Ongoing focus on strategies to manage higher costs while continuing to grow the business 2. Investment in existing facilities: ¾ Brownfield developments accounted for 6% EBIT
Slide 7: Mayne Hospital Bid
Mayne Hospital Bid Consortium bid unsuccessful Final acquisition terms did not meet Ramsay investment parameters ¾ Careful to ensure existing business not adversely affected Unprepared to extend offer to cover the uncapped risk exposure in relation to past liabilities, particularly medical ind
Slide 8: Future Directions
Future Directions Management still pursuing growth strategy Potential for growth through brownfield development Opportunities in not-for-profit sector Commitment to aged care remains, management has been pursuing strategy in parallel with bidding for Mayne hospitals
Slide 9: FY 2004 on Track
FY 2004 on Track Health Fund negotiations successfully completed for 75% of the market First Quarter FY 2004 core profit in line with targeted net profit growth in the region of 10%
Slide 10: Outlook and Guidance
Outlook and Guidance Strategic position of RHC hospitals expected to keep demand strong against a slight industry softening Focus on cost containment and growing business Expansion program benefits continue to contribute to earnings - Greenslopes, Lake Macquarie Remain is a strong position t
Slide 11: Questions
Ba AS RAMSAY HEALTH CARE Questions