EFTA01452970.pdf

4 February 2014 Health Care Facilities and Services HCA Holdings, Inc. Figure 1: 4Q13 Earnings Variance table HCA Holdings, Inc. Quarterly Variance Report (8 in MMs) 4013 Income Statement 08 Estimate Consensus Actual Variance (1) Cash revenue $8.889 $8.822 88.836 02% YoY % growth 5.4% 4.6% 4.8% 16 bps Adjusted UNICA $1.685 $1,647 51714 4.1% YoY% growth 4.9% 2.5% 6.7% 418 bps HITECH payments (60) NA (50) •16.7% Diluted EPS. excl. one-time charges $0.89 30.86 $0.92 8.0% YoY% growth -3.0% -7.1% 0.4% 746 bps 4013 Margin Analysis 08 Estimate Consensus Actual Variance Adjusted E8ITIDA margin 19.0% 18.7% 19.4% 73 bps Salaries and benefits ratio 45.7% NA 44.9% -84 bps Supplies ratio 17.8% NA 17.7% -8 bps Other operating expenses ratio 18.3% NA 18.6% 24 bps Bad debt ratio 11.1% NA 11.3% 23 bps 4013 Revenue Metrics CC Estimate Consensus Actual Variance SS revenue growth 3.5% NA 3.8% 25 bps SS admissions growth 0.5% NA -1.8% -230 bps SS adjusted admissions growth 1.0% NA -1.0% -200 bps SS rev per adjusted admission growth 2.5% NA 4.8% 230 bps Notes: (1). Variance is calculated Actual vs. Consensus. unless Consensus is NA San. Onaseft• Brk ...warymar* Tamen ibLCOIS Results review in brief Revenue trends Q4 revenues were $8.836 billion vs. $8.822 billion / DBe $8.889 billion. O4 revenue growth was +4.8% yoy, with SS growth +3.8% driven by SS adj. admit of -1.0%, SS inpatient admissions -1.8%, and better SS revenue per adj. admit of +4.8% yoy (vs. O32013 +3.4%). Pricing growth was driven by acuity (+3%) and payor mix. HCA indicated that O4 admissions declines were driven primarily by a reduction in pulmonary admissions due to the lighter flu season (-9% yoy), and short-stay admissions due to implementation of the two- midnight rule (Medicare -12% yoy; other payors -4% yoy). Mgt noted that Medicare one-day stays accounted for 50 bps of total admissions declines as a result of the two-midnight rule. Page 4 Deutsche Bank Securities Inc. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0110324 CONFIDENTIAL SDNY_GM_00256508 EFTA01452970