#1ASX ANNOUNCEMENT 6 March 2017 Ramsay Health Care People caring for people INVESTOR PRESENTATION - UNITED KINGDOM Attached is a copy of the Investor Presentation on Ramsay Health Care UK that was presented in London, United Kingdom on Friday 3 March 2017. Yours sincerely 4. Offrade. John O'Grady Group General Counsel & Company Secretary Ramsay Health Care Limited +612 9220 1000#2Ramsay Health Care UK Investor Day Update 3 March 2017 ramsayhealth.com Ramsay Health Care People caring for people#3Session Outline 1. RHC UK Overview 2. Operational Highlights 3. Quality Focus 4. Operating Environment 5. Growth Strategy 6. Outlook#4RHC UK Overview#5Ramsay Health Care UK . • • RHC acquired Capio in November 2007 36 sites 25 x Inpatient Facilities 6 x Day Surgeries 3 x Neuro Rehabilitation Units 1 x Private Patient Unit 1 x Retirement Village Low to medium acuity Almost entirely elective surgical activity 78% of admissions are NHS Vast majority of activity is day case ramsayhealth.com 4 Ramsay Health Care People caring for people#6Operational Highlights#7Financial Performance 203.4 50.5 26.0 6 mths ended 31 Dec'15 Revenue (£m) ramsayhealth.com 217.3 51.7 26.5 6 mths ended 31 Dec'16 EBITDAR (£m) EBITDA (£m) Ramsay Health Care People caring for people#8Activity Mix 2015 2015 5.7% 17.6% 81.6% Period: Jul-Dec ramsayhealth.com 76.7% 18.4% Funding Stream 2016 5.9% ■ NHS PMI ■Self Pay Day case % 2016 Overnight ■Same Day 16.1% 81.8% 77.9% 18.2% ■ NHS ■ PMI ■Self Pay Overnight ■Same Day Ramsay Health Care People caring for people#9NHS Referrals Growth 30000 25000 20000 15000 10000 5000 First half growth H1 FY15 - FY16: 8.6% H1 FY16 - FY17: 11.1% Jul Aug Sep Oct Nov ramsayhealth.com Dec ■ FY14 ■FY15 ■ FY16 Ramsay Health Care People caring for people#10NHS Referrals Market Share ✓ RHC UK is still the largest Independent Sector provider of acute NHS services. Market share maintained in a growing market despite increased focus by competitors. % of referrals 80.0% Share of NHS Referrals: RHC UK v Other top 5 Independent Sector providers combined 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% FFH 0.0% CY 13 CY 14 CY 15 CY 16 ramsayhealth.com RHC UK Other Ramsay Health Care People caring for people#11Brownfield Developments Recently Completed Oaklands Additional operating theatre, day case unit and minor procedures room Rowley Hall Day case unit extension Mount Stuart Additional operating theatre, day case unit and minor procedures room New Hall Additional operating theatre and day case unit Springfield Chemotherapy Unit and Radiotherapy Centre Total spend = £16M ramsayhealth.com Ramsay Health Care People caring for people#12Quality Focus#13Clinical Governance Internal · • • Bolstered clinical governance team Resource level and breadth of knowledge Enhanced centralisation of policy functions Roll out of several key initiatives: National Safety Standards for Invasive Procedures (NatSSips) Anti-microbial Stewardship Updated evidence based' care pathways Internal provider assessment reviews (mock CQC reviews) Risk Management programme including health surveillance and sharps management Updated Risk Register Lessons learned programme ICHOM Cataract Data Set PROMS - Patient Reported Outcome Measures: External • · • Hips, Knees, Groin Hernia, Varicose Veins, Cataracts JAG accreditation for 23 units (2 outstanding) Leading the Independent Sector in JAG Accreditation All sites now inspected by CQC. PHIN participation - high compliance level. ramsayhealth.com Ramsay Health Care People caring for people#14Care Quality Commission (CQC) 34 RHC UK sites registered • 31 hospital facilities • 3 neurological rehabilitation units Figure 2.11 Acute hospitals overall ratings • • All RHC UK sites now inspected Inspection Regime Inspection teams of 12 to 16 inspectors for 2 to 3 days Inspected against 5 domains across up to 7 service streams Each domain receives a rating 100% 80% • Each facility gets an overall rating 14 sites have had ratings published 9 RHC UK sites (64%) have received a rating of 'Good' Comparator: 34% NHS Trusts and 64% of Independent Sector organisations • 5 RHC UK (36%) sites have a rating of 'Requires Improvement' • Comparator: 57% of NHS Trusts and 36% of Independent Sector organisations ramsayhealth.com 60% 57 40% 20% 8 0 Source: CQC ratings data Inadequate 34 Requires improvement Good Outstanding Source: "CQC State of Care 2015/16" Ramsay Health Care People caring for people#15Outcomes & Patient Satisfaction Patient Satisfaction 94.6% of patients were 'satisfied overall' with their most recent visit 94.9% of patients would be 'extremely likely' or 'likely' to recommend 97.3% of patients expressed satisfaction with the doctors 95.0% of patients expressed satisfaction with the nurses 98.4% of patients expressed satisfaction with the cleanliness 3 of the top 5 hospitals nationally in NHS 'friends and family test' were Ramsay Hospitals i Patient Reported Outcome Measures (PROMS) 4 of the top 25 hospitals nationally for health gain on the Oxford PROM for hip replacement were Ramsay hospitals #1 a Ramsay hospital achieved the highest score nationally on the EQ-5D PROM for hip replacement 6 of the top 50 hospitals nationally for health gain on PROMS for groin hernia were Ramsay hospitals (incl. 3 in top 15) ICHOM Patient reported outcomes following treatment for Cataracts 14 Ramsay Health Care People caring for people#16Operating Environment#17PMI & Self Pay Private Medical Insurance Total coverage 10.6% Consolidation of the market Direct and indirect Insurance Premium Tax Self Pay Further increase from June 17 Solid growth in volumes NHS wait times NHS service restrictions ramsayhealth.com 13.0% IPT Rate Growth 11.0% 9.0% 7.0% 5.0% 3.0% 1.0% 1994 1997 1998 2011 2015 2016 2017 -1.0% Ramsay Health Care People caring for people#18NHS Acute Care Performance • Projected Trust overspend 16/17: c £970M 135 of 238 Trusts in deficit 14 Trusts in Special Measures Possibly 10-15 more to come Declining Referral to Treatment Time (RTT) performance Increasing bed blockages NHS RTT - % completed within 18 weeks Number of days patients have been delayed Days 92.5% 200,000 92.0% 91.5% 91.0% - 90.5%- 90.0% 89.5%- 89.0% - 88.5% - 88.0% Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 ramsayhealth.com 150,000 100,000 50,000 0 2010 2011 2012 2013 Year 2014 2015 2016 Ramsay Health Care People caring for people#19NHS Environment • Structure - Sustainability Transformation Plans (STPs) Place based plans across 44 'footprints' Funding ask of £10B Proposed service closures and consolidation Predominantly A&E and Maternity but also some bed closures, if not entire facilities Public Health and Community Care Significant demand and funding issues. Politics NHS is still very much an extremely political issue Government not intervening BREXIT Government leaving it to NHSE ramsayhealth.com Ramsay Health Care People caring for people#20Growth Strategy#21Growth Strategy Sustainable growth enhanced by focusing on hospitals and taking a prudent approach to acquisitions Organic Brownfield Capacity Expansion Public/Private Collaborations Acquisitions ➤ Demographics > Quality portfolio of hospitals spread throughout the country ➤ Ongoing business improvement ➤ Enhanced referrer engagement > Unmet & growing demand driving Ramsay's ongoing investment in capacity expansion ➤ Potential for more partnerships to develop/manage/provide NHS hospital services ➤ Constantly exploring further acquisition opportunities ➤ System pressures may create opportunities ➤ Must add long-term value ramsayhealth.com Ramsay Health Care People caring for people#22Business Development . • . · . • GPL Strategy • • Structured approach delivered with a local flavour Winter pressures campaign NHS Engagement NHS Regional Offices seeking to intervene/assist with NHS capacity issues Seeking out willing Trusts to partner with Brownfields • • . Developments underway (c £19.8M) 5 Sites 4x Operating Theatres 3x Outpatient Department Expansions 1 x Ambulatory Unit 1 x Static MRI Developments being worked up 6 Sites proposing Operating Theatre capacity expansion Greenfields (c £13.3M) Acklam Hall Croydon Day Surgery Acquisitions Constantly looking and evaluating ramsayhealth.com Ramsay Health Care People caring for people#23Outlook#24Outlook 1. Workforce 2. Demand Management Efforts 3. Regulatory Regime 4. Systemic NHS Reorganisation 5. Tariff 6. Brexit ramsayhealth.com Ramsay Health Care People caring for people#25Outlook ✓ Ageing population 2015 to 2020: expected total population growth 3% > 65 years: increase by 12% (1.1 million) > 85 years: increase by 8% (300K) ✓ NHS wait times will not be allowed to slip dramatically ✓ Lack of NHS capital for capacity expansion ✓ Ramsay can invest in capacity expansion ✓ We will continue to seek out new opportunities ramsayhealth.com Ramsay Health Care People caring for people#26Questions