ANNUAL GENERAL MEETINGANNUAL GENERAL MEETING25 November 200325 November 2003

Chairman’s Overview

Net profit up 19%, building on record profit growth of previous 2 years

Total year dividend up 41% to 15.5 cents (fully franked) vs. 11 cents (unfranked)

Strong result underlines strength and importance of Ramsay’s relationships with doctors and staff and its strategic portfolio of hospitals

Cautiously optimistic about outlook, focus on strategies to manage higher costs while continuing to grow the business

Continue to investigate value added acquisitions in both hospital and aged care sectors

The Board has reviewed Corporate Governance policies in the light of ASX Principles and Recommendations and is comfortable with practices

Financial Highlights

Net Profit up 19% to $37.1m

Group Revenue up 20% to $662.2m

Group EBIT up 14% to $66.4m (11% excluding acquisitions)

Expansion program accounted for 6% EBIT growthOrganic growth accounted for 5% EBIT growth

EBIT margin of 10.4% (excluding new hospital acquisitions)

EPS up 18% to 28.9 cents per share

Total year dividend up 41% to 15.5 cents (fully franked) vs. 11 cents (unfranked)

Financial Highlights FY 2003

Full year Dividend (cents/share)

EPS (cents/share)

NPAT

Profit before tax

EBIT

EBITDA

41%15.5¢(Franked)

11.0¢(Unfranked)

18%28.9¢ 24.5¢

19%37.131.1

23%53.543.6

14%66.458.4

13%91.080.8

20%662.2549.8Operating Revenue

% Inc.2003

$m2002

$m

Year Ended 30 June

NPAT Growth

6.6

16.0

31.1

37.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

$m

FY 2000 FY 2001 FY 2002 FY 2003

Strong NPAT growth, year on year

Earnings per share

6.1

14.2

24.5

28.9

0

5

10

15

20

25

30

Cen

ts p

er S

har

e

FY 2000 FY 2001 FY 2002 FY 2003

EPS up 18% in the yearReturn on investment 13.8% for FY03Return on equity 14.6% for FY03

Dividend Growth

7.4*

8.5*

11.0*

15.5#

0

4

8

12

16

Cen

ts p

er

Sh

are

FY 2000 FY 2001 FY 2002 FY 2003

Dividend increased 41% in latest year * Unfranked

# Fully franked

Operational Highlights

Focus on cost containment resulted in 2nd half NPAT matching 1st half despite higher nursing wages and seasonal factors Health Fund negotiations

Positive relationshipsAim to cover cost increases

Medical IndemnityExcellent risk management record in keeping down claims and premiumsLeading the way in hospital related tort law reform

Nurse ShortagesStrong recruitment driveExcellent retention program and record“Ramsay Way” staff satisfaction program

Premier position in market sees North Shore Private record strong double digit EBIT growth; Westmead exceeding expectationsBrownfield developments accounted for 6% EBIT

Occupancy – Patient Days

200

260

320

380

440

Jun'00 Dec'00 Jun'01 Dec'01 Jun'02 Dec'02 Jun'03

Half-year Ended

Inpatient

Total (Inpatient & DayPatients)

Occupancy levels for the second half maintained despite seasonality

Revenue Growth Time Line

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

$m

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Financial Years ended 30 June

PerthVeteran HospPrivatisation

Feb’94

BrisbaneVeteran Hosp Privatisation

Jan’95

RHC listed on the ASX

Sept’97

Co-located North ShorePrivate Hosp

Opened Jul’98

Alpha Hosp Group

Acquired May’01

EBIT Growth

30.8

39.6

58.4

66.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

$m

FY 2000 FY 2001 FY 2002 FY 2003

Group EBIT increased by 14%Breakdown of EBIT Growth:

Brownfield developments - 6%Organic growth - 5%Acquisitions - 3%

Group EBIT margin 10.4% (excluding acquisitions)

Brownfield Developments

Hollywood Private Hospital• Development:

60 new beds10 new psychiatric beds2 additional operating theatres (with capacity for two more theatres)A new Intensive Care UnitAn additional Cardiac Catheter LabPalliative care unitMedical suite complex

• Came on-stream in 1st half FY 2003

• EBIT up 14%

• Return on investment of 16% already achieved in first year

Brownfield Developments

Greenslopes Private Hospital

• Development90 new beds4 additional operating theatresMedical suite complex

• Largest private hospital in Australia at 527 beds

• Opened late FY 2003

• Already exceeding current year EBIT target and investment hurdle rate

Brownfield Developments

Lake Macquarie Private Hospital

• Acquired April 2002

• Hospital development44 new beds; total of 122 beds2 additional operating theatres (with capacity for a third theatre)expanded day surgerymedical consulting suite complex

• Development largely complete - opening January 2004

Brownfield Developments

Mt Wilga Private Hospital

• Hospital redevelopmentNew ward block; total of 80 bedsNew administration block, reception and entryAdditional services

• Completion targeted for end of 2004 calendar year

Cairns Acquisition

Cairns Private Hospital

• Acquired November 2002

• 141-bed former not-for-profit hospital servicing a large population in Northern Queensland

• Exceeding budget

• EPS positive in the current year

• Improved performance under Ramsay management

DVA Contract Extended

Ramsay will continue to have a contract with DVA for services to veterans at Greenslopesand Hollywood post-2006

Facilitates the continuation of vital service to veterans

Greenslopes and Hollywood will continue as major providers of hospital services to veterans in Perth and Brisbane beyond 2006

Part of effective management of transitional arrangements

Strategy

Management still pursuing growth strategyOrganic growth through micro-management

Target lower risk, higher returns through investment in existing hospital portfolio and capacity expansion

Continue to investigate opportunities for growth both within the private hospital sector and other opportunities outside of hospitals, that are close to core competencies

Investment criteriaStrategic fit

Moderate to low operating risk

EPS positive and 15% ROI in short-medium term

Strategy

Aged Care

Focus on specific profitable sectors of market, accommodation bonds and chargeable extra services

Funding through free cash flow, enhanced by accommodation bonds

Silver Circle acquisition

Continue to pursue opportunities

HospitalsContinue to pursue hospital acquisitions:

• Opportunities in the not-for-profit sector opening up

• Still pursuing opportunities in the for-profit sector (e.g. Mayne hospitals sale)

Mayne Hospitals Bid

Final acquisition terms did not meet Ramsay investment parameters

One off costs in relation to the bid, approximately $2.5m, to be accounted for as a “specific” item in 1st half FY 2004

no impact on core profitability and ongoing cash flow generation

FY 2004 on Track

Payer negotiations successfully completed for 90% of revenue

First Quarter FY 2004 core profit in line with Budget

Gross revenue up 19% Admissions and patient days up 13% (5.5% excluding Cairns and Greenslopes development)EBIT margins holding up above 10%

Barring unforeseen developments, targeting core profit growth in region of 10% in FY 2004

Outlook

Strategic position of RHC hospitals expected to keep demand strong against a slight industry softening

Focus on cost containment and growing business

Expansion program benefits continue to contribute to earnings - Greenslopes, Lake Macquarie

Remain in a strong position to pursue strategic acquisitions

QuestionsQuestions