Briefing – 24 February 2011Financial Results

Half-year ended 31 December 2010

Christopher Rex, Managing Director

AGENDA

Half-year Financial HighlightsFinancial Performance– Group, Australia, UK, France

Operating Environment– Australia, UK, France

Brownfield Developments UpdateCapital ManagementSuccessful & Sustainable Growth StrategyOutlook

2

HALF-YEAR FINANCIAL HIGHLIGHTS

Strong core NPAT reflects underlying strength of Australian business, ramp-up of brownfields and continuing growth in the UK

3

Core net profit after tax up 27.1% to $115.8 millionCore EPS up 20.8% to 53.9 centsAustralia and Indonesia revenue up 8.7% to $1.5 billionEurope revenue up 19.3% to $384.9 millionGroup EBIT up 19.2% to $204.5 million

– Australia and Indonesia EBIT up 16.8% to $174.4 million

– Europe EBIT up 34.8% to $30.1 million

Interim dividend 22.5 cents fully franked, up 21.6%Guidance reaffirmed for core NPAT growth for the Group of 22%-24% in FY11, translating to core EPS growth of 18%-20%

GROUP FINANCIAL PERFORMANCE

FY11$m

FY10$m

%Increase

Australia/Indonesia

UK France Group(1) Group

Operating Revenue 1,479.2 290.5 94.4 1,864.1 1,682.9 10.8%

EBITDA 222.1 37.4 12.3 271.8 235.3 15.6%

EBIT 174.4 22.8 7.3 204.6 171.6 19.2%

Core NPAT (2) 115.8 91.1 27.1%

Core EPS (3) 53.9¢ 44.6¢ 20.8%

Interim Dividend – Fully Franked 22.5¢ 18.5¢ 21.6%

1. Includes a six-month contribution from Ramsay Santé which was acquired on 29 March 2010 2. Core NPAT is from continuing operations and before specific items and amortisation of intangibles3. Core EPS is from continuing operations and before specific items and amortisation of intangibles and after CARES dividends

4

HALF-YEAR ENDED 31 DECEMBER

NOTE: All numbers are in Australian dollars unless otherwise stated

RECONCILIATION TO REPORTED PROFIT

FY11$m

FY10$m

%Increase

Core NPAT 115.8 91.1 27.1%

Specific items & amortisation of intangibles (net of tax) (1)(13.0) (12.5)

Reported Net Profit after Tax 102.8 78.6 30.8%

5

HALF-YEAR ENDED 31 DECEMBER

(1) Specific items & amortisation of intangibles (net of tax)FY11$m

FY10$m

Deferred annual non-cash rent expense relating UK hospitals (9.9) (11.5)

Net other specific items (2.0) 0.1

(11.9) (11.4)

Amortisation of Intangibles (1.1) (1.1)

(13.0) (12.5)

GROUP CORE NPAT AND CORE EPS

6

$115.8m

Core NPAT up 27.1% to $115.8 millionCore EPS up 20.8% to 53.9 cents

27.1%

20.8%

Core NPAT (A$m)Core EPS (cents/share)

$61.5m

Jun ‘08 Jun ‘09 Jun ‘10 Dec ‘08 Dec ‘09 Dec ‘10

$77.7m$87.4m

$68.7m

$91.1m

June Half December Half

$115.8m

DIVIDEND GROWTH

Interim dividend up 21.6% on the previous corresponding periodRamsay has maintained its dividend payout ratio whilst investing in major brownfield developments

7

Dividends (cents per share)

17.5¢21.5¢

25.0¢

16.5¢18.5¢

22.5¢

Final Dividend Interim Dividend

Jun ‘08 Jun ‘09 Jun ‘10 Dec ‘08 Dec ‘09 Dec ‘10

FINANCIAL PERFORMANCE – AUSTRALIA/INDONESIA

HALF-YEAR ENDED 31 DECEMBER

FY11$m

FY10$m

Increase

Operating Revenue 1,479.2 1,360.3 8.7%

EBITDA 222.1 190.9 16.3%

EBIT 174.4 149.3 16.8%

EBITDA Margin (%) 15.0% 14.0% 100 bps

8

Australia and Indonesia performed strongly on all operating levelsSignificant increase in EBIT reflects strong organic growth and increasing contribution from brownfields

HALF-YEAR ENDED 31 DECEMBER

FY11£m

FY10£m

Increase/(Decrease)

Operating Revenue 175.9 171.6 2.5%

EBITDAR 43.9 43.8 0.2%

EBIT 13.8 11.8 16.9%

EBITDAR Margin (%) 25.0% 25.5% (50 bps)

9

Margins holding up well under new ISTC pricing regime and tapering off of material cost efficienciesNHS volumes continuing to grow in challenging economic and operating environment NHS admissions up 9.6% and now comprise approximately 60% of total Ramsay UK admissions

FINANCIAL PERFORMANCE – UK

Private hospital sector an integral part of the Australian health care system, treating more than 40% of all patients

Stable operating environment

Public system subject to reforms

Little or no impact for the private sector

Bipartisan political support for strong private sector

Health insurance membership growing

Growth in demand underpinned by positive demographics

Changing political flavour in states could lead to opportunities

OPERATING ENVIRONMENT - AUSTRALIA

10

Economy remains challenged and facing substantial public expenditure cuts

NHS largely protected from spending cuts

Major reorganisation of NHS currently underway

Private sector involvement recognised as vital and could grow

PMI remains flat

Some green shoots in self pay sector

Short term challenges but medium/long term remains exciting

Growth in demand underpinned by positive demographics

OPERATING ENVIRONMENT - UK

11

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

12

BROWNFIELD DEVELOPMENTS UPDATE

Ageing and expanding population fuelling ongoing investment in brownfield developments− Beyond current brownfield commitments, Ramsay anticipates investing

approximately $100M per year on average on new projects to meet growing demand for health care

o Additional $50M funding approved during December half

− Completed projects adding to earnings at EBIT level and contributing positively to EPS

− On track to achieve ROI target of 15% within 3 years, with some smaller projects reaching return hurdles earlier than forecast

− Total funding of $730M (gross) approved for quality pipeline of projects since 2007 of which $455M spent on completed projects

13

Key projects which have opened in FY11

BROWNFIELD DEVELOPMENTS UPDATE

Hospital Project Opened

North Shore (Sydney) Additional private rooms, theatres, birthing units and car parking October 2010

Cairns Clinic New psychiatric clinic October 2010

Pindara (Gold Coast)Additional operating theatres, dedicated endoscopy unit, oncology unit, ICU beds, multi-storey car park

November 2010

Westmead (Sydney) Additional beds, including ICU, additional operating theatre November 2010

14

Key projects which have opened in FY11

BROWNFIELD DEVELOPMENTS UPDATE

Hospital Project Opened

North West (Brisbane) New theatres, day surgery, beds and delivery suites February 2011

Kareena (Sydney) Additional beds, theatres, rehabilitation gym, hydrotherapy pool

February 2011

15

Key projects to open in balance of FY11

Hospital Project TimelineLake Macquarie Extension for orthopaedic, urology

and general surgery services Due to open March 2011

Joondalup (Perth) Stage 1 – additional beds, expanded emergency department.

Due to open March 2011

CAPITAL MANAGEMENT

5.1

2.7 2.7

3.7

3.3

2.42.1

2.0

3.0

4.0

5.0

6.0

FY05 FY06 FY07 FY08 FY09 FY10 Dec‐10

Leverage = Net Debt / EBITDA

Affinity Acquisition $1.4 B

Capio UKAcquisition £193 M

Ramsay SantéAcquisition €87M

16

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

(more than 100%)

SUCCESSFUL & SUSTAINABLE GROWTH STRATEGY

Three key drivers of growthOrganic− Underpinned by demographics, quality portfolio of hospitals, ongoing business

improvement

Brownfield investment− Growing demand driving Ramsay’s ongoing investment in capacity expansion

Acquisitions− Exploring further acquisitions in the UK and France, researching opportunities

in other markets

− Ramsay has proved it can export its management model

− Must add long-term value to shareholders

17

Sustainable growth enhanced by focusing on hospitals and taking a prudent approach to acquisitions

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

Opportunities for consolidation in France, actively assessing bolt-on acquisitions

Barring unforseen circumstances, Ramsay reaffirms guidance for FY11 Group Core NPAT growth of 22%-24%, translating to Core EPS growth of 18%-20%

18

QUESTIONS