PwC Strategy

UK Health and Care ProvisionUKTI Investor Roundtable

Strictly Private and Confidential

10 June 2015

PwC10 June 2015Strictly private and confidential

The UK healthcare market is highly developed, with a range of specialist capabilities

2UK Health and Care Provision

Definition

Subsectors

(Examples)

Diagnosis and treatment of acute or long-term injuries,

illnesses or conditions

Long-term care services for people with ongoing care and

support needs

Health Care

UK Health and Care Provision

Private Hospitals

and Clinics

Dentistry

Cosmetic Surgery

Lab Services

Staffing Agencies

Medical Cover

Elderly Care

Mental Health

Fostering

Learning Disabilities

Children’s Homes

Special Education

PwC10 June 2015Strictly private and confidential

The market has a track record of strong growth in both public and private spending

3UK Health and Care Provision

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

92 97

103

111 117

124 130

135 140

147 144 145 147 151

UK expenditure on health and social care, 2000 - 2013 (£bn, 2013 prices)

79ee109f33384121b09b1321b20a4654

b8593a17f74d4771ba0c68b210a20f5b

Column Stacked

Private Spending

+2.2% p.a.

Opportunities

Challenges

Demographics

Outsourcing

Technology

Awareness

Public fundingPolicy

Complexity

Public Spending

+4.3% p.a.

PwC10 June 2015Strictly private and confidential

Children’s Homes

There are potential investment opportunities with a wide variety of characteristics…

4UK Health and Care Provision

Hospitals and Clinics

Cosmetic/Fertility

Staffing Agencies

Medical Cover Elderly Homes

Fostering

Specialist Care Homes

Asset requirement

Organic

growth

Stronger

Weaker

Asset heavyAsset light

Health

Care

Home Care

MH Hospitals

LD Supported Living

Indicative positioning of selected UK health and care provision sub-segments

Dentistry

PwC10 June 2015Strictly private and confidential

…permitting a number of different investment approaches

5UK Health and Care Provision

Organic growth

Buy-and-build

Consolidation

Export-driven

Real Estate

PwC10 June 2015Strictly private and confidential

Recent investment examples and upcoming opportunities

6UK Health and Care Provision

Recent acquisitions and investments Upcoming opportunities

Medical CoverAcquisition of Simplyhealth PMI business by Axa PPPMay 2015

Hospitals – RE£226m sale and leaseback of Aspen hospitals to HCREITMay 2015

Care Homes – RE$175 sale and leaseback of Healthcare Homes by OmegaMay 2015

Foster Care£36m acquisition of By the Bridge fostering by CambianMarch 2015

Elderly and Specialist Care

Hospitals and Labs

Other

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