Oppenheimer Healthcare Conference December 10, 2014, New York, NY Vic Campbell Senior Vice President Mark Kimbrough Vice President Investor Relations
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation may contain certain forward-looking statements provided by Company management. These statements are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forwardlooking statements include all statements that do not relate solely to historical or current facts, including statements regarding future operations, financial results, cash flows, costs and cost management initiatives, capital structure management, growth rates, and operational and strategic initiatives, and can also be identified by the use of words like may, believe, will, expect, project, estimate, anticipate, intend, plan, initiative, continue or words or phrases of similar meaning. These forward-looking statements speak only as of the date hereof and are based on our current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond our control. These risks and uncertainties are described in headings such as Risk Factors in our annual report on Form 10-K for the year ended December 31, 2013 and other reports filed with the Securities and Exchange Commission. As a consequence, current plans, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in today s presentation. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented and we do not intend to update any of these forward-looking statements. The presentation may contain certain non-gaap measures, including Adjusted EBITDA. The Company s earnings releases for the year ended December 31, 2013, and for the quarter and nine months ended September 30, 2014, located on the Company s investor relations page at www.hcahealthcare.com, include reconciliations of the difference between certain non-gaap financial measures with the most directly comparable financial measure calculated in accordance with GAAP. These non-gaap financial measures should not be considered alternatives to the GAAP financial measures. References to Company used herein refer to HCA Holdings, Inc. and its affiliates, unless otherwise stated or indicated by context. 1 1
Most people know HCA as a hospital company, with leading market positions across the U.S. Anchorage Western Idaho Central London Idaho Falls New Hampshire San Jose Salt Lake City Las Vegas Denver Wichita Kansas City Oklahoma City Terre Haute Frankfort S VA Nashville N VA Richmond Southern California El Paso Dallas / Fort Worth Austin San Antonio Corpus Christi McAllen Central Louisiana Chattanooga NWGA Augusta Atlanta Middle GA Lafayette Tallahassee New Orleans Panhandle Houston Tampa Myrtle Beach Trident / Charleston Jacksonville North Central Florida Orlando Treasure Coast Miami/Fort Lauderdale/WPB Brownsville Note: Gold labels indicate top 10 domestic markets by 2013 Adjusted EBITDA. 2
HCA is the largest non-governmental hospital provider in the U.S. and much more Leading hospital provider (1) AND #1 or #2 in key markets with market shares ranging from ~ 20% to 40% Operating in 17 of 25 fastest growing MSAs with populations > 500,000 Provide ~ 4% - 5% of all U.S. hospital services Leader across a range of services One of the largest clinical networks, with over 35K active physicians Leader in oncology clinical trials, 2 nd to MD Anderson Third largest acute inpatient psychiatric provider A leading national player in ASCs (1) Based on most recently available data for each metric. 3
Percentage Change From Prior Year Nine Months Ended Sept. 30, 2014 2.0% Equivalent Admissions (1) 4.3% Revenue per Equivalent Admission (1) 7.6% Revenues 12.6% Adjusted EBITDA 32.8% Net Income Attributable to HCA Holdings, Inc. (2) 4 (1) Same facility through 09/30/14 compared to prior year period 36.3% Diluted Earnings Per Share (2) (2) Net income attributable to HCA Holdings, Inc. and diluted earning per share exclude losses (gains) on sales of facilities, losses on retirement of debt and legal claim costs. 4
Cash Flow Trends since March 2011 IPO* Cash Flow from Operations $13.7 B Capital Expenditures $6.6 B Acquisitions $2.5 B Special Dividends $3.2B Share Repurchases (1) $3.7B HCA Holdings, Inc. cash flow data for the period from April 2011 through 3Q 2014 (1) Share repurchase from IPO through December 5, 2014 5
When thinking about growth strategies, we focus on a number of dimensions in addition to clinical quality Breadth and depth of services Access points Capital deployment Core services Service Line Focus E.g., Cardio, Neuro, ED Womens, Behavioral, Rehab High intensity and deep service capability E.g., TAVR, Trauma, Stroke network 10 hospitals 3 free-standing EDs 43 medical group locations 11 urgent care centers 6
HCA States Economic Indicators Favorable Trending % Change in Key Economic Indicators Real GDP 2013 YoY Growth Personal Income 2013 YoY Growth Unemployment May 2014 over PY Single Family Housing Permits Start April 2014 YTD over PY State General Sales & Gross Receipt Taxes 2013 YoY Growth Weak 2.12% 2.57% Favorable -2.5% 9.7% 2.83% 1.84% 3.07% 1.5% 2.57% -1.35% 7.6% -1.50% 0.5% -2.5% 6.50% -1.20% 6.13% -34.2% 47.8% -0.70% 5.80% 6.56% -6.0% 13.0% 3.88% HCA Top States: California Colorado Birth Rate 2013 YoY Growth Florida Kansas Tennessee Texas -4.3% 2.1% -0.79% Median of HCA s Top 6 States 75 th Percentile of HCA States -0.78% 0.00% Range of HCA s Top 6 States US Average US Range 7
We are confident that our core strengths will continue to position us for future success Strong, diversified assets and markets Financial strength Scale Deep and experienced leadership Strong operating culture 8
Health Reform Impact on 2014 Uninsured admissions down 9.5% (1,2) Medicaid admissions up 6.3% (1,2) HIX admissions and ED visits increasing by quarter Admissions (1) ED Visits (1) 1 st Quarter 1,600 3,900 2 nd Quarter 5,500 19,100 3 rd Quarter 7,600 26,800 9 Full year 2014 Health Reform benefit to Adjusted EBITDA estimated (per October guidance) to be approximately 4% (1) Same Facility (2) YTD 3Q 2014 compared to YTD 3Q 2013 9
Uninsured Admissions Declining Medicaid Admissions Increasing 60% HCA 5 Expansion States YTD 9/14 HCA 15 Non expansion States YTD 9/14 Total HCA 20 YTD 9/14 CAGR (2009 2013) 40% 37% 20% 0% 2.0% 6.3% 3.6% 8.9% 20% 4.0% 9.5% 40% 60% 56% 80% Medicaid Admissions Uninsured Admissions 10 All data is same facility 10
HCA States: 5 State HIX and 15 Federal HIX 5 Medicaid Expansion States Federal HIX State HIX Medicaid Expansion 11
Oppenheimer Healthcare Conference December 10, 2014, New York, NY Vic Campbell Senior Vice President Mark Kimbrough Vice President Investor Relations