Ramsay Health Care : ASX Announcement - Ramsay Health Care Investor Briefing Day 1 Transcript

Ramsay Investor Day | December 10, 2021

Slide 3 Group Strategy Update

I'd like to acknowledge the Gadigal people of the Eora Nation as the traditional custodians of the country we are meeting on today. We recognise their continuing connection to the land and waters, and thank them for protecting this coastline and its ecosystems since time immemorial. We pay our respects to elders past, present, and emerging and extend that respect to all First Nations people present today.

Slide 4 Agenda Day 1

Today, Martin and I are going to outline the overarching strategic direction for the group. That's been refined in conjunction with the board and leaders across the business over the last 18 months. We'll then hand over to the CEO of our Australian business, Carmel Monaghan. And Carmel will run through how these themes will be taken forward by the Australian business. There'll be plenty of opportunity for questions at the end of today's session, with a range of executives from the business. For those in the room, we hope you can also join us for a bite to eat at the end of the session.

Slide 5 Agenda Day 2

On Monday evening, we'll hear from our European CEO, Pascal Roche, and the CEO of our UK business, Dr. Andy Jones. And that will also be followed by a Q&A session.

Slide 6 Ramsay Health Care - Overview

So as many of you know, Ramsay Health Care was founded in 1964 by Paul Ramsay. We were listed in '97, we've grown rapidly, both organically and via acquisitions since that date. The group now delivers a wide range of acute and primary healthcare services, from over 460 locations across 10 countries. From the groups very early days, Paul's mantra of, "If we look after our people, look after our patients, then the business will look after itself." And that's been led by our purpose of people, caring for people. And this has never been more true in today's environment. And it underpins our vision to be a leading healthcare provider of the future, and our mission, to change what is possible for your health, placing the patient at the center of everything we do.

Slide 7 Strengths of the Global Business

The expansion of the group, has created a global business model with strong positions in the delivery of healthcare services in each of the markets we operate in. This scale delivers a number of strengths in areas, including procurement, operational efficiencies, clinical excellence, and research and development. The refinement of our strategy emphasises a greater focus on the areas where we can achieve benefits from our scale, whilst also ensuring that our regions remain salient to the communities in which we operate. We may have noticed that we're not covering our Asian joint venture, Ramsay Sime Darby today, and that simply reflects the time available, and the relative size of the business, but the joint venture does continue to pursue the elements of the strategy that we'll outline today.

Slide 8 Key Trends Driving Change

The process of advancing our strategy has involved understanding the likely evolution of healthcare systems. And that's drawing from our experiences across regions, and defining a vision for the organisation, including a set of strategic themes and initiatives to prioritise. During this process, a number of key trends were identified as driving the evolution of healthcare landscapes over the longer term. These include changing patient and doctor expectations, particularly around convenience and support across broader pathways, involve digitisation of care, which is driving convenience, continuous and enhanced care coordination. And with a potentially lower cost of delivery. Also, the emergence of new non-traditionaldata-driven competitors in some parts of the market. And clinical innovation, which continues to drive trends which support both hospital-based services and non-hospital based services. And then the evolution of reimbursement structures and pay a mix with a greater focus on outcomes and value-based models.

Slide 9 Strategy Overview

We believe that Ramsay is uniquely positioned to take advantage of these key trends, building upon our global platform, our enviable culture, and the strategic relationships we have, to become a leading integrated healthcare provider of the future. While hospital-based care is expected to remain at the core of what we do, our vision is to leverage our physical footprint, strong patient and doctor relationships, and clinical expertise to expand along the patient pathway, delivering a more convenient, integrated, and efficient healthcare services platform, and improved health outcomes for our patients. To realise this ambition, and deliver for all our stakeholders, we'll focus on strategically growing our existing market share through organic growth, brown-field and green-field investment, and strategic acquisitions. And leveraging the existing core business to extend our service offering further along the patient pathway, both in and out of hospitals, with everything centered around the patient, and their experience. And we'll explore new funding models, new payers, and enhance existing relationships that have formed over the course of COVID. And while we continue to offer services across all the therapeutic areas, we'll concentrate investment in key areas, including mental health, cancer, cardiology, and orthopedics, and explore the global potential of these services. And then rather than attempting to do this just on our own, and control everything in house, we'll identify partners and partnership models to accelerate the execution of the strategy.

We'll continue to optimise the business processes to drive cost out of the business, optimising local and potential enterprise resources such as research and development and procurement activity, we'll generate the greatest value as we look at the operating model and patient pathways.

Our strategy will be underpinned by focus on critical elements, including digital and data investment, continuing to ensure global standards of clinical care, developing leaders through our leadership programs, and attracting the best talent to deliver on the strategy. All the while, ensuring our Ramsay care sustainability agenda is strong.

Slide 10 World Class Hospital Network

We will continue to drive organic growth from our hospital network, which is expected to be underpinned by the aging demographics in the markets, in which we operate in, and clinical innovation and investment into new healthcare technologies.

We will continue to invest in the size and scale of our core hospital footprint, by brown-field developments, select green-fields, and bolt on acquisitions. Brown-field investment will include making the more accessible, and improve the amenity for doctors and patients, and ensuring that our facilities are designed to meet the changing markets.

Slide 11 New and Adjacent Services

Our move into new and adjacent services will focus on moving along the patient pathway, retaining that relationship, providing coordinated care using our data and digital capabilities, to improve the experience for our patients and clinicians. Digitising the patient and clinical pathway will be an enabler to our success. Delivering more services across a broader range of healthcare settings, will allow us to lead the way in outcome focus integrated care. We also look at potential of new payer models and will seek to influence reforms in value-based models. Each region is at a different phase along this journey, and we will adapt the strategy to suit the local market structure and our current position in the market.

Slide 12 Operational Excellence

We will invest in additional resources in achieving operational excellence, and we'll work more closely across the regions on areas that support the business where we can leverage our scale, including areas of research and development, clinical excellence, and improving patient outcomes. Strategic sourcing will continue to be one of the key areas of focus. And while the strategy has been evolving for some time, we believe there is more that we can do, and that will be to improve our supply chain, minimise risk, and maximise value.

Slide 13 Strong Organisational Foundations

To underpin our strategy and ensure we leverage our scale, we will continue to invest in our key organisational foundations. This will include investing in creating an ecosystem of intelligence, utilising our data and insight, leveraging our understanding of our patients, and work workflow automation. Remaining a leader in clinical excellence, with integrated research and education, and building a high engagement, strong talent proposition, and an enterprise-wide transformational leadership capability. And continuing to develop our organisational capabilities to improve our market intelligence and execution. And we will invest in supporting the delivery of our vision and plan, and put sustainability at the heart of our plan to ensure we continue to attract talent and investment to build resilience.

Slide 14 Digital and Data

Turning to digital and data, which we see as a critical enabler to deliver on our strategy. Be fair to say that at the current time, we have different levels of digital and data maturity across our regions, driven by varying market dynamics, business models, and service priorities. And I'm going to say legacy systems that we have. Overall, Ramsay Sante, and Ramsay Sime Darby are further ahead in digital maturity, in the markets in which we operate, and within Ramsay. Followed by the UK, we've just executed the implementation of electronic patient record system. That's just happened in the last couple of weeks. And then in Australia, we are continuing to invest in discreet areas, such as patient clinician experiences. While we undertake a full scale review, and design the future digital and data strategy. The investment in digital and data across Ramsay, has to date been relatively siloed within the regions. However, there's an appetite to leverage our experience and understanding across the business. While we do not see value in full digital standardisation across the markets, we are exploring our global data options. Given the current investment and existing platforms across the group, we'll adopt a two-pronged approach to our roadmap. A digital, we'll look to benefit from greater cross regional collaboration and partnering. All regions need to build out the full suite of foundational capabilities, and capture quick wins. The more advanced regions can pave the way for others, and this can be achieved through building scalable solutions with interoperability, where it adds value. The data, we have an opportunity to start the journey by taking an enterprise-lead approach. It sets the global strategy and standards for how Ramsay acquire,

consume, store, manage, use, and protect data. This has the potential to be a differentiator for Ramsay as a global operator. We have recently appointed a chief digital and data officer, who just commence at this on Monday this week, and who will lead the program of work in Australia, and will also be responsible for building our global digital and data roadmap.

Slide 15 Industry Leading Talent

Recruitment and retention remains a challenge across healthcare around the world. Ramsay's people strategy is focused on attracting, developing and retaining industry leading talent, to support our growth and culture. The strategy is broadly built under three pillars, developing the capabilities required to deliver our strategy, evolving our culture to ensure it remains salient and foundational, and establishing contemporary and competitive market frameworks to attract industry leading talent.

Slide 15 Industry Leading Talent

We have a range of initiatives to address our global workforce challenges. In the short term, the regions have in place a number of immediate initiatives that they will outline. From a global perspective, we'll work on initiatives that include developing a world-class global employee value- proposition with regional variations to reflect local market conditions. A global EVP will retain the Ramsay way as our bedrock, and we'll evolve our culture through diversity, inclusion, and flexibility. Secondly, formally defining the characteristics of a Ramsay leader. We want to employ people who align with the Ramsay way, and who will ambitiously drive a transformation agenda. And we will establish a formal Ramsay Alumni program with a view to maintaining the candidate pool for rehiring or referrals.

Our longer term priorities include further developing our leadership academy, combining the expertise and strengths of our regional leadership, and trading programs, which would provide attractive global opportunities for Ramsay recruits, and increasing engagement with a range of multi-national industry and academic partners. And investing in global tech platforms, which will allow us to leverage data, to provide insight and support in multi-generational recruitment and retention programs.

Slide 17 Our Sustainability Journey

A Ramsay strategy for sustainability came together with input from Ramsay people across all of our regions. And the strategy comes to life through three expressions of care. Caring for our people, our planet, and our communities. Our goals and targets cover a wide range of social and environmental issues, such as diversity and inclusivity, mental health and wellbeing, reducing our carbon footprint and waste and responsible sourcing across our medical supply chains. Our commitment to sustainability is also embedded in our debt facilities through sustainability-linked loans.

Our strategy contributes to the UN's Sustainable Development Goals, and we have become a participant of the UN Global Compact. We're also part of the Climate Leaders Coalition in Australia. And we have joined the 40:40 Vision, an investor-led initiative to achieve executive gender balance in Australia's largest listed companies. Our future focus is on attracting and retaining industry leading talent, boosting our employees' mental health and wellbeing, reducing our environmental footprint, developing our climate resilience, enhancing our reporting framework and engaging with our supply chain on social and environmental issues. Our global sustainability committee oversees teams in each region to drive our sustainability initiatives and identify risks and opportunities. And that committee will review goals and target on an annual basis.

Slide 18 Healthier People

In our first pillar, people caring for people. We are proud of the progress we've made in maintaining our focus on high quality care and patient experience, with high NPS scores across the regions. We have achieved gender balance, with women representing 40% of senior leaders. And we have invested in a range of programs to develop our people, including nursing apprenticeships and nursing leader programs. This year, we also welcomed our first cohort in the new Global Corporate Graduate program. And we've just completed a global employment engagement survey of our 80,000-strong workforce. In these challenging times we know, the wellbeing of our people is paramount. And we're focused on practical, local, mental health and wellbeing support, and ensuring we recognise our people for their outstanding work.

Slide 19 Thriving Planet

The second pillar, we know that healthcare sector has a significant environmental footprint, and our people are eager to drive sustainable change. Environmental initiatives introduced already include reducing single-use plastics where it's safe to do so, and increased recycling of waste. We acknowledge the importance for the business to be resilient in a changing climate. We are working to understand the short and medium term risks and opportunities across our existing buildings, future developments and supply chains. As part of this, we have commenced aligning our reporting with the task force for climate-related disclosure recommendations. We have set foundational targets to reduce energy use at facility level and help cut our greenhouse gas emission intensity. As part of this, a major investment in solar energy is being rolled out over the next five years across Australia and the UK. The links between climate and health are clear, and we will monitor the longer term implications for our people and patients. To support our approach, greenhouse gas emissions reduction targets have been included in the FY22 scorecards for our executive management.

Slide 20 Stronger Communities

And the third pillar, caring for our community. Ramsay's long held values, motivate us constantly to improve and find new and better ways of caring. That's why we support a wide range of clinical trials and health research aimed at improving the wellbeing of our patients and society as a whole. To be truly sustainable, we cannot work in isolation. So we are focusing and boosting our focus on responsible sourcing. We're developing a global responsible sourcing framework and have recently appointed a global responsible sourcing manager. Our goal is to ensure suppliers that make up 80% of our spend, have an independent sustainability assessment, and we'll work with other suppliers on improving their performance. A focus on sustainability across our value chain will be key in ensuring business resilience to the challenges ahead.

Slide 21 Regional Communities

Now, people have been paramount in championing initiatives in all of our regions. Ramsay wants to take a leading role in the healthcare sector and drive action to deliver more sustainable and reliable healthcare outcomes. Through this, we know that even small changes can make a big difference, and we look forward to updating you on our progress.

Slide 22 Disciplined Transformation

Finally, reflecting the importance we've placed on our updated strategy, we've established a global transformation office, tasked with aligning our regional business transformation strategies, pursuing new business opportunities across the patient journey, and leveraging Ramsay's strengths and expertise to grow our market share. I'm pleased to announce that Dr. Andy Jones, who many of