Briefing –

25 February 2008 Financial Results

Half Year ended 31 December 2007

AGENDA

•

Ramsay Financial Performance Pre Capio

UK (“Ramsay UK”)

•

Ramsay Financial Performance Including Ramsay UK

•

Operational Highlights Pre Ramsay UK•

Ramsay UK

Rationale, performance & growth strategy•

Growth Strategy –

Brownfields

•

Financial Year 2008 Outlook

1

HALF YEAR OVERVIEW (PRE RAMSAY UK)

•

Strong half-year result on like-for-like basis

Half-year core EPS growth tracking towards full-year guidance for low double-digit growthStrong organic growth across the portfolio with the minimal remaining Affinity synergies achievedGreenslopes turnaround started, Hollywood still being stabilisedBrownfields expansion program progressing well

2

FINANCIAL PERFORMANCE (PRE RAMSAY UK)

Half Year ended 31 December

2007 2006

$ m $ m % Inc.

Continuing Operations

Operating Revenue 1,128.9 1,055.2 7.0%

EBITDA 153.5 138.5 10.8%

EBIT 120.4 108.5 11.0%

Core NPAT – continuing operations 63.6 56.2 13.2%

Core EPS – continuing operations 31.6¢ 27.8¢ 13.5%

Interim dividend – fully franked 15.0 ¢ 13.0 ¢ 15.4%

(Core NPAT - continuing operations and Core EPS – continuing operations are before specific items, amortisation of intangibles and divested operations) 3

GROUP FINANCIAL PERFORMANCE (INCLUDING RAMSAY UK)

Half Year ended 31 December

2007 2006

$ m $ m % Inc.

Continuing Operations (including Ramsay UK)

Operating Revenue 1,188.1 1,055.2 12.6%

EBITDA 156.6 138.5 13.0%

EBIT 120.1 108.5 10.7%

Core NPAT – continuing operations 61.2 56.2 9.0%

Core EPS – continuing operations 30.2¢ 27.8¢ 8.6%

Group Items

NPAT – divested operations (0.7) 0.1

Specific items and amortisation of intangibles (net of tax) (9.6) (1.3)

Net Profit after Tax 50.9 54.8 (7.0%)

(Core NPAT - continuing operations is before specific items, amortisation of intangibles and divested operations) 4

Specific Items and Amortisation of Intangibles (net of tax)

Half Year Ended 31 December

Specific Items and Amortisation of Intangibles (Net of Tax) 2007 2006

$ m $ m

Ramsay (Pre UK)

Write off of capitalised borrowing costs (refinancing) 5.5 -

Project costs, restructuring and integration 2.9 0.6

8.5 0.6

Amortisation of intangibles 0.9 0.7

9.4 1.3

Ramsay UK

Restructuring and Integration costs 0.2 -

9.6 1.3

5

INTERIM DIVIDEND UP 15.4 %

Interim DividendFinal Dividend

6

EBIT GROWTH (PRE RAMSAY UK)

•

Group EBIT up 11% for half year

7

REVENUE ANALYSIS (PRE RAMSAY UK)

•

Strong EBIT growth in all states, except WA (marginally diluted by Hollywood)

•

Veteran hospitals represent 17% of total revenue–

Veteran patients within these hospitals represent 50% of revenue

* On an annualised running rate, Ramsay UK to form approx 25% of group revenues8

CORE NET PROFIT GROWTH (PRE RAMSAY UK)

•

Core NPAT up 13.2% for the half year•

Strong organic growth on a like-for-like basis

9

CORE EPS GROWTH (PRE RAMSAY UK)

10

• Core EPS up 13.5%• Better than planned

COMMITTED DEBT FUNDING

•

In November 2007 Ramsay signed a new underwritten senior debt facility agreement for A$1.535B and ₤290M.

To refinance existing senior debtTo fund the unspent balance of the $550M in brownfield capexTo fund Capio UK acquisitionTo provide headroom for future growth opportunities

•

Committed senior debt funding until November 2012 with predetermined interest margins (according to “leverage”

grid)

•

Ramsay is therefore not exposed to any refinancing risk for the next 5 years. 11

EFFECTIVE BALANCE SHEET MANAGEMENT

•

Strong & consistent cash flow (generated in the private hospital industry) underwrites debt servicing

•

Additionally Ramsay is very focussed on cash flow and working capital management

High cash conversion rate (see cash conversion slide)Ramsay has a risk averse philosophy to interest rate exposure and hedges a significant amount of total interest payableApproximately 85 % of interest rate exposure is currently hedged for periods of 2-5 yearsReplacement capex spend aligned to depreciation charge

12

HIGH CASH CONVERSION

•

Cash flow generation in the December 07 half year was consistent

with profitability (EBITDA of $157M v gross operating cash flow of $145M)

•

This is particularly pleasing given that cash flow had been adversely affected in earlier periods by the impact of the transition out of the DVA contracts. These past shortfalls have largely been made up.

13

OPERATIONAL HIGHLIGHTS (PRE RAMSAY UK)

•

Group EBIT up 11% on strong performance across portfolio

•

Strong organic EBIT growth in all states except WA (marginally diluted by Hollywood)

•

Hospital EBIT growth 9%•

Veterans’

hospitals improving

Greenslopes turning aroundHollywood still being stabilised

•

Total admissions up 3.7%

14

OPERATIONAL HIGHLIGHTS (PRE RAMSAY UK)

•

Cost containment continues across the portfolio resulting in improved margins

Supply costsEconomies of scale

•

Group EBIT (ex. Ramsay UK) margin up to 10.7% from 10.3%

15

EBITDA GROWTH & POSITIVE MARGIN TRENDS

(PRE RAMSAY UK)

•

Group EBITDA up 10.8% for the half year•

Group EBITDA margin 13.6% vs 13.1%

•

Hospital EBITDA margin 17.9% vs 17.7% excl. prosthesis•

Hospital EBIT margin 14.7% vs 14.5% excl. prosthesis 16

RAMSAY’S REVENUE GROWTH PATH

Alpha Group Acq. May’01

Hollywood Major Expansion Opened Jul’02

Greenslopes Major Expansion Opened May’03

Benchmark Group Acq. Jul’04

Affinity Group Acq. Apr’05

Capio UK Acq. 2007

Hollywood Acq. Jan’94

Greenslopes Acq. Feb’95

Pro-forma 12-Mth Run

RateFinancial Year ended 30 June

North Shore Private Hosp Opened Jul’98

RHC Listed Sep’97

17

RAMSAY UK -

RATIONALE

•

Huge opportunity due to changing landscape

•

Ramsay UK well positioned to capitalise on market changes and capture outsourcing of National Health Service (NHS) to private sector

•

A strong, stand-alone business, completed Nov 23, 2007 –

contributed 6 weeks to results

•

Business underpinned by stable Private Medical Insurance (PMI) market 18

RAMSAY UK PROFILE

•

4th largest operator of private hospitals in the UK•

Diverse business and revenue source

22 private hospitals across England with 854 beds and 48 operating theatres9 Independent Sector Treatment Centres (ISTCs)2 neurological rehabilitation homes22-apartment retirement villageIn-hospital pathology servicesFixed & mobile radiology unitsDay surgery unitLondon-based ophthalmology unit

19

RAMSAY UK –

PERFORMANCE

•

9 Independent Sector Treatment Centres (ISTCs) All Ramsay UK ISTCs experienced volume growth in calendar 2007Already seeing high levels of contract activity in 2008

•

Rising NHS activity encouragingIncreasing number of spot contracts have been negotiatedChoose & Book rising through improved marketingNumber of NHS patients treated at Ramsay UK hospitals in calendar 2007 more than double 2006

20

RAMSAY UK –

PERFORMANCE

•

Integration process going well

•

Government remains fully committed to Choose & Book initiative

Official launch supported by new website enabling GPs to access all providers on equal footing (public and private hospitals)ISTC Wave II reduction in contracts not reflective of government commitment to the private sector

21

RAMSAY UK -

GROWTH STRATEGY

•

Well positioned to benefit from further government outsourcing in coming months

•

Full patient choice to be officially launched in April 2008 but staged use of Choose & Book already in place and increasing

•

Ramsay models forecast slow growth in patient choice. Current activity suggests models are conservative

•

PMI stable, self pay increasing with improved marketing•

Additional capacity may be required

•

Acquisition opportunitiesClassic Hospitals expensiveOther opportunities will be investigated to enhance the value ofRamsay UK 22

GROWTH STRATEGY BROWNFIELDS

•

Ramsay already committed $550M for improvements and capacity expansion

•

Approx 25% spent•

Average construction profile 18 months

•

All projects are tracking well•

Brownfield developments expected to deliver earnings growth towards the end of FY08 and beyond

23

ADDITIONAL BROWNFIELD OPPORTUNITIES

•

Opportunities exist to create additional mega referral centres across the country

•

Designed to attract increased referrals

•

Mega referral centres at various stages of planning: Warringal (well developed)St George (progressing well)Westmead (well developed)Pindarra (master planning stage)

24

FY 2008 OUTLOOK

•

Strong fundamentals of private hospital industry will continue to underpin Ramsay’s growth prospects

Private Health Insurance membership continues to grow•

Strong organic growth to continue

•

Ramsay UK performing to expectations,1.5-2.0 cents/share dilutive in FY08

•

Ramsay UK expected to be Core EPS accretive in FY10 and beyond

•

Including Ramsay UK, Ramsay is targeting low double-digit growth for the total group for FY08, on the back of strong growth in Australia

25

QUESTIONS