annual j.p. morgan healthcare conference · healthcare conference milton johnson chairman & ceo...
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35th Annual J.P. MorganHealthcare Conference
Milton Johnson Chairman & CEO
Sam Hazen President & COO
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. Forward-looking 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 under headings such as “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2015 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, 2015 and quarter and nine months ended September 30, 2016 located on the Company’s investor relations page at www.hcahealthcare.com, include reconciliations of 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.
Forward Looking Statements andNon-GAAP Financial Measures
2
Acute CareAmbulatory
ServicesAccess Centers Physicians
169
44k
Hospitals
Licensed Beds
70
56
Urgent Care Centers
FSERs
117
16
ASCs
GI Centers
35k
Physician Clinics
Active Medical Staff
~830
Diversified mix of facilities, services, and settings
3
Attractive and diversified asset portfolio
Assets located in 16*
of the 25 fastest growing
U.S. markets with >500K population
4
Nashville
Tampa/ St. Pete
Denver
Austin
Kansas City
SouthFlorida
LasVegas
Richmond
San Jose
Salt Lake
San Antonio
Houston
NorthernVirginia
Jacksonville
Charleston
Myrtle Beach
SWVA
El Paso
Orlando
SouthernCalifornia
CentralLondon
OklahomaCity
Boise
McAllen
DFW
Atlanta
* 16 HCA markets ranked in the top 25 fastest growing U.S. markets outlined in white
Wichita
Sarasota
5
Committed to industry leading quality and service
Growth through patient & physician relationships
A well-informed response to the market environment
Industry leading efficiency
Development of future leaders
Strategic guiding principles
Strong and improving market share
HCA market share ranks 1st or 2nd in
26 of 38 studied markets
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Nashville
34%
Tampa/ St. Pete
30%
Denver
32%
DFW
18%Austin
40%
Kansas City
23%
SouthFlorida
24%
Las Vegas
32%
Richmond
37%
San Jose
19%
Salt Lake
20%
San Antonio
35%
Houston
19%
NorthernVirginia
11%
Jacksonville
20%
Charleston
25%
Myrtle Beach
37%
SWVA
31%
El Paso
29%Orlando
10%
So Cal
24%
McAllen
15%
Wichita
36%
• Same Store. Composition Market (In Market + In Migration)• Statistics are based on inpatient discharge data for the most recently available
periods for 38 defined markets.• Analysis includes data through 1Q’16 (31 markets), 4Q 2015 (6 markets), and 3Q 2015
(1 market); Source = State data via Stratasan
Consistent top line growth
7.2%$39.7B
Revenue
2.5%1.4M
Surgeries
7.1%8.1M
EmergencyRoom Visits
4.8%3.1M
EquivalentAdmissions
3.8%1.9M
Admissions
Percentages represent 5 year CAGR: 2010 – 2015Values represent 2015
7
EBITDA & EPS Growth
$5.0
$5.5
$6.0
$6.5
$7.0
$7.5
$8.0
$8.5
2012 2013 2014 2015
Ad
just
ed E
BIT
DA
in
Bil
lio
ns
6.6% 12.7%Adj EBITDA Diluted EPS
$6.5B
$7.9B
$1
$2
$3
$4
$5
$6
2012 2013 2014 2015
Dil
ute
d E
PS
$4.99
3 YRCAGR
8
$3.49
Cash Flows provided by Operations and primary uses of Cash Flows from March 2011 IPO through 3Q 2016
$24.0B
9
Deploying a balanced allocation of capital
$8.4BShare
Repurchases
$3.2BSpecial
Dividends
$4.0BAcquisition
Capital
$11.6BCapital
Expenditures
Investing in Growth
Delivering Shareholder Value
Cash Flow from Operations
Local Sustainable
Growth
Operational Excellence
Coordination Across
Continuum
Access and Convenience
ComprehensiveService
Lines
Strong Physician
Relationships
10
Provider system of choice
11
Comprehensive access across the continuum
3
5
3
3
5
7
2
2
12 Hospital Campuses
10 CareNow Urgent Care Centers
17 Imaging Centers
8 Ambulatory Surgery Centers
66 TriStar Medical Group Locations
4 Freestanding ERs
1 Transfer Center
7 Health Parks
Nashville, TN Market:
Innovation
Capital
EconomiesImprove our business
Drive growth
Speed to market
Support execution
12
Leveraging our scale
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5
SEP 2016YTD
2015
2014
2013
2012
2011
PP&E Acqusition13
Committed to ensuring capacity and access
2017 Pipeline
548 Inpatient Beds
204 ER Beds
$15.6B invested since the 2011 IPO
In Billions
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Advancing the patient experience
PatientExperience
Partneringwith
Physicians
EngagedEmployees
StrongLeadership
Big Data/Technology
PHYSICIANENGAGEMENT
VOICE
GROWTHTIME
CLINICAL CAPABILITIES15
Partnering with physicians
Growth in individual covered
population, percent change,
2015-2019
Dallas
Denver
Houston
Austin
San AntonioPalm Beach
Jacksonville
Tampa/St Pete
Riverside
Salt Lake City
Nashville
Kansas CityLas Vegas
Miami
Richmond
San Jose
Las Vegas
El Paso
Panhandle
Charleston
Myrtle Beach
16
Less than 0%
0% to 2%
2% to 4%
4% to 6%
6% to 9%
9% to 15%
15% to 20%
20% to 25%
25% to 35%
35% or more
Attractive demand projections
SOURCE: MPACT7.6 R5AASY, McKinsey & Company
DIVERSIFIEDPORTFOLIO
DEEP ANDEXPERIENCEDLEADERSHIP
SCALEFINANCIALSTRENGTH
STRONGOPERATINGCULTURE
17
Sources of differentiation