Investor Update 2019 Year End Forward Looking Statements and - PowerPoint PPT Presentation

Investor Update 2019 Year End

Forward Looking Statements and Non-GAAP Financial Measures 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, 2019 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 quarter and year ended December 31, 2019, and similar earnings releases for the prior three December 31 st year ends, 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 Healthcare, Inc. and its affiliates, unless otherwise stated or indicated by context. 2 Investor Update

Diversified Mix of Facilities, Services, and Settings Acute Ambulatory Access Physicians Services Centers Care ~1,360 170 184 123 Physician Clinics Urgent Care Centers ASCs Hospitals 104 49k 21 ~46.7k Active and Affiliated GI Centers Licensed Beds FSERs Medical Staff Figures as of December 31, 2019 3 Investor Update

Strategic Guiding Principles Committed to industry Industry leading efficiency leading quality & service “ Be the provider system of choice for patients and Growth through patient Development of physicians by leveraging future leaders & physician relationships the scale and capabilities of HCA Healthcare in the local markets to create a “ A well-informed response competitive advantage. to the market environment 4 Investor Update

Strong Market Presence 25.9 % Salt Lake Denver Northern Kansas Virginia City Wichita San Jose SWVA Las Nashville Richmond Vegas HCA Healthcare Southern California market share ranks Western North Myrtle Carolina 1st or 2nd in 27 of Beach El Paso El Paso Austin 37 studied markets DFW Charleston HCA Healthcare’s Orlando Savannah Enterprise Market San Houston Antonio Jacksonville Share: 25.9% Tampa/ St. Pete South McAllen Florida Markets represent • Statistics are derived by analyzing inpatient data supplied by relevant state agencies. State agencies HCA’s major markets supplying inpatient data specifically disclaim the statistics and findings resulting from such inpatient data. • Recently acquired markets, Western North Carolina and Savannah, are not yet included in HCA’s same store enterprise market share definition and are not included in the current enterprise market share calculations. 5 Investor Update

Consistent Top Line Growth Admissions Equivalent Admissions Revenues 5 year CAGR 1 3.3% 5 year CAGR 1 4.3% 5 year CAGR 1 6.8% 2019 2 2.11M 2019 2 3.65M 2019 2 $51.3B 2019 over PY 3 6.6% 2019 over PY 3 5.2% 2019 over PY 3 10.0% Surgeries Emergency Room Visits 5 year CAGR 1 2.3% 5 year CAGR 1 4.2% 2019 2 1.58M 2019 2 9.16M 2019 over PY 3 4.5% 2019 over PY 3 3.7% 1 Percentages represent 5 year CAGR: 2014 – 2019 2 Values represent end of year 2019 3 Percentages represent 2019 over PY 6 Investor Update

Adjusted EBITDA & EPS Growth $10.50 $9.9B $10 $9.0 Adjusted EBITDA in Billions $9 $8.8 6.3 % 15.2 % $8.6 $8 Diluted EPS * 3 YR $8.4 CAGR Adj. $7 Diluted $6.87 $8.2 EBITDA EPS $6 $8.2B $8.0 $5 $7.8 $7.6 $4 2016 2017 2018 2019 2016 2017 2018 2019 • For the year ended December 31, 2019, Adjusted EBITDA totaled $9.857 billion compared to $8.949 billion in 2018 ; diluted earnings per share was $10.07 compared to $10.66 for the year ended December 31, 2018. • Diluted earnings per share for the year ending December 31, 2019 includes gains on sales of facilities of $18 million, or $0.04 per diluted share, and losses on retirement of debt of $211 million, or $0.47 per diluted share. Diluted earnings per share for year ended December 31, 2018 includes gains on sales of facilities of $428 million, or $0.91 per diluted share, and losses on retirement of debt of $9 million, or $0.02 per diluted share. * 2016-2019 Diluted EPS excludes gains on sales of facilities, losses on retirement of debt and legal claim benefits. 2016-2019 includes tax benefits for employee equity award settlements ($0.41, $0.22, $0.35, and $0.19 per diluted share, respectively). 2017 and 2018 include impacts of Tax Reform (-$0.81 increased provision and $0.19 tax benefits per diluted share, respectively). 7 Investor Update

Deploying a Balanced Allocation of Capital Investing in Growth Delivering Shareholder Value $23.2B $3.2B Capital Expenditures Special Dividends $8.2B $ 1.0B Cash Flow from Operations Acquisition Capital Quarterly Dividends* $45.5B $13.5B Share Repurchases Cash Flows provided by Operations and primary uses of Cash Flows from March 2011 IPO through December 2019 *HCA began paying a regular, quarterly dividend during the 1 st quarter of 2018 8 Investor Update

HCA’s Growth Drivers Deliver Operational • Strong operating and clinical Excellence Attract metrics Good Leverage Physicians • Strong market share trends Scale • Expanded market footprint Sustainable • Improved constituency Growth engagement • Maturing acquisitions Coordinate Develop Better Care Comprehensive For Patients • Impactful capital investments Services Create Easy Access 9 Investor Update

Comprehensive Access Across the Continuum 3 Nashville, TN Market 10 Hospitals 21 Imaging Centers 5 6 Ambulatory Surgery Centers 9 Health Parks 3 68 2 TriStar Medical Group Locations 7 2 4 Freestanding ERs 5 3 15 CareNow Urgent Care Centers 1 Transfer Center Figures as of September 2019 10 Investor Update

Sources of Differentiation Improve Our Capital Business Drive Growth Innovation Speed to Market Support Execution Economies of Scale 11 Investor Update

Committed to Ensuring Annual Capital Investment Capacity and Access $31.4B invested since 2011** the 2011 IPO 2012 2013 2020 2014 2015 Pipeline* 2016 2017 2018 961 2019 $4.16 $1.68 Inpatient Beds $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 $6.0 In Billions PP&E Acquisition * Projected pipeline does not include acquisition-related capacity 363 ** 2011 includes $351M in Capital Investment incurred prior to the March 2011 IPO ER Beds Investor Update

Driving Value for Key Stakeholders Patients Physicians Employees Payers Shareholders Safe Clinical Compensation Earnings Growth Comprehensive Capabilities and Benefits Network of Access Points and Service High Quality Return on Capital Lines Efficient Place Training and Compassionate to Practice Development Competitively Future Growth Priced Convenient Voice Resources Physician Management User Friendly Network Growth Advancement Cost-effective Clinical Outcomes Governance 13 Investor Update

Advancing Strong Leadership the Patient Experience Partnering with Patient Engaged Physicians Experience Employees Big Data/Technology 14 Investor Update