Macquarie Connections 12 th Annual Australia Conference 5 May Christopher Rex, Managing Director

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1 Macquarie Connections 12 th Annual Australia Conference 5 May 2011 Christopher Rex, Managing Director

2 AGENDA About Ramsay Health Care Growth Story Formula For Success Recap Half-Year Results Operating Environment Australia Sunshine Coast Development Operating Environment UK Operating Environment France Our Growth Strategy Capital Management Outlook 2

3 ABOUT RAMSAY HEALTH CARE Expanding global hospital operator Employing more than 30,000 people across three continents Largest private hospital operator in Australia, approximately 30% market share Entered the UK with the acquisition of Capio UK (Ramsay UK) in November 2007 Entered Continental Europe in FY2010 acquiring a majority stake in French private hospital operator, Groupe Proclif (Ramsay Santé), on 29 March Admitted into the S&P/ASX100 August 2010 and MSCI in December 2010 First bolt-on acquisition in France with agreement to buy Clinque Convert Hospital in April 2011 Current market capitalisation approximately $3.9B, 117 hospitals in 4 countries 3

4 Index (base of 100) GROWTH STRATEGY DELIVERING STRONG SHAREHOLDER RETURNS 3000 Ramsay Total Shareholder Return 1 Jan 2000 to 29 April 2011: 2584% Ramsay Total Shareholder Return versus ASX100 Accumulation Index (share price appreciation plus reinvestment of dividends) ASX 100 Accumulation Index 1 Jan 2000 to 29 April 2011: 149% 0 Jan-00 Oct-00 Jul-01 Apr-02 Jan-03 Oct-03 Jul-04 Apr-05 Jan-06 Oct-06 Jul-07 Apr-08 Jan-09 Oct-09 Jul-10 Apr-11 Source: Iress, Macquarie Securities RHC.AX Total Shareholder Return ASX 100 Accumulation Index 4

Estimate REVENUE GROWTH A$B 4.0 3.5 3.0 2.5 Compound Annual Growth Rate (CAGR) of 24.

5 Estimate REVENUE GROWTH A$B Compound Annual Growth Rate (CAGR) of 24.4% Actual Revenue Estimated Revenue FY Financial Year ended 30 June * FY 2010 Ramsay Santé acquired 29 March

Cents per Share CORE EPS GROWTH 90.0 80.0 Compound Annual Growth Rate (CAGR) of 16.1% 70.0 60.0 50.

6 Cents per Share CORE EPS GROWTH Compound Annual Growth Rate (CAGR) of 16.1% Financial Year ended 30 June * FY 2010 Ramsay Santé acquired 29 March

7 OUR FORMULA FOR SUCCESS Management and culture Long term, stable management team, special culture ( The Ramsay Way ), industry leaders Ramsay can export proven management model and blend it with local expertise Strong growth strategy Ramsay s growth strategy has remained clear and consistent Focused solely on private hospitals Financially disciplined Growth only pursued if financial and strategic criteria and investment hurdles are satisfied 7

8 GROUP FINANCIAL PERFORMANCE HALF-YEAR ENDED 31 DECEMBER 2010 $m 2009 $m % Increase Australia/ Indonesia UK France Group (1) Group Operating Revenue 1, , , % EBITDA % EBIT % Core NPAT (2) % Core EPS (3) % Interim Dividend Fully Franked % 1. Includes a six-month contribution from Ramsay Santé which was acquired on 29 March Core NPAT is from continuing operations and before specific items and amortisation of intangibles 3. Core EPS is from continuing operations and before specific items and amortisation of intangibles and after CARES dividends 8

9 GROUP REVENUE & EBITDAR ANALYSIS Revenue EBITDAR Australia/Indonesia 79% UK 16% France 5% Australia/Indonesia 73% UK 22% France 5% NOTE: Data is from the six months ended 31 December

10 OPERATING ENVIRONMENT - AUSTRALIA Growth in demand underpinned by positive demographics Stable operating environment Private hospital sector an integral part of the Australian health care system Treats more than 40% of all patients who go to hospital each year Bipartisan political support for strong private sector Means testing the Private Health Insurance rebate? Health insurance membership growing 44.9% of population insured Emerging opportunities for provision of services to publicly funded patients 10

11 SUNSHINE COAST DEVELOPMENT Ramsay to build, own and operate private hospital Co-located with the future public Sunshine Coast University Hospital 200-patient capacity hospital Due to open late year lease Significant range/volume of services to public patients via service purchase agreement with QLD Health Supported by growing and ageing population on Sunshine Coast Gross investment $145M, net investment significantly less after taking into account capital recovery/availability charge ROI hurdle similar to Brownfields (15% on net investment, 3 years after opening) 11

OPERATING ENVIRONMENT - UK Economic conditions remain challenging NHS largely protected from public spending cuts Major reorganisation of NHS currently underway Private sector involvement

12 OPERATING ENVIRONMENT - UK Economic conditions remain challenging NHS largely protected from public spending cuts Major reorganisation of NHS currently underway Private sector involvement recognised as vital and could grow Some green shoots in self pay sector PMI yet to recover Short term challenges but medium/long term remains exciting Growth in demand underpinned by positive demographics 12

OPERATING ENVIRONMENT - FRANCE Operating environment stable Current blended provision well regarded Economy appears robust Reorganisation of health administration undertaken has devolved decision

13 OPERATING ENVIRONMENT - FRANCE Operating environment stable Current blended provision well regarded Economy appears robust Reorganisation of health administration undertaken has devolved decision making Growth in demand underpinned by positive demographics Opportunities for consolidation in highly fragmented market Agreed to purchase Clinique Convert (178-bed hospital) in April 2011, completion expected end May 2011 First step in French private hospital roll-up strategy Provides strategic base for further expansion in Rhone-Alps region 13

14 WELL-DEFINED GROWTH STRATEGY Ramsay s growth strategy has remained clear and consistent, with a sole focus on managing private hospitals Organic Quality portfolio of hospitals Ongoing business improvement Underpinned by demographics (ageing and expanding population) Brownfields Public/Private Collaborations Acquisitions Ramsay has always invested in capacity expansion and improvement of its facilities Growing demand driving current $730M (gross) brownfield programme Some smaller projects hitting 15% ROI earlier than forecast Approx. $100M/year on average needed to meet future demand Potential for more partnerships to develop/manage/provide hospital services in changing political landscape Ramsay shortlisted for Midland Health Campus Ramsay well positioned for future opportunities Investing in core competency hospitals Must add long-term value to shareholders Have successfully exported management model Actively exploring further acquisitions in France, continuing to explore other markets 14

15 CAPITAL MANAGEMENT Leverage = Net Debt / EBITDA Affinity Acquisition $1.4 B Capio UK Acquisition 193 M FY05 FY06 FY07 FY08 FY09 FY10 Dec-10 Ramsay Santé Acquisition 87M Debt Profile Committed senior bank debt facilities of $1.9B in place until November next year Headroom of $600-$700M after current brownfield commitments Cash Flow High cash conversion rate (approximately 100%) 15

16 OUTLOOK Business well positioned to continue performing strongly Ramp-up of completed brownfield developments to continue adding to earnings at EBIT and EPS level Ramsay UK continues to perform strongly in a challenging environment More opportunities for consolidation in France, actively assessing bolton acquisitions Barring unforseen circumstances, Ramsay reaffirms guidance for FY11 Group Core NPAT growth of 22%-24%, translating to Core EPS growth of 18%-20% 16

17 QUESTIONS

8 th Annual Australian & New Zealand Investment Conference London 8 March Christopher Rex, Managing Director

8 th Annual Australian & New Zealand Investment Conference London 8 March 2011 Christopher Rex, Managing Director AGENDA About Ramsay Health Care Growth Story Formula For Success Recap Half-Year Results