Mlp Saglik Hizmetleri As Class B · BIST:MPARK
Mlp Saglik Hizmetleri As Class B — MLP Care — HSBC MENAT Investor Forum, March 2021
40 slides from Mlp Saglik Hizmetleri As Class B's conference presentation, March 2021
Slide 1: MLP Care Investor Presentation
MLP Care Investor Presentation HSBC MENAT Investor Forum, March 2021
Slide 2: Content
Content Introduction to MLP Care Our Growth Strategy is Intact Snapshot of Pandemic MLP Care 2020 Financial Highlights Accelerated Efforts for Digitalization After Pandemic Why Invest in MLP Care? Appendix 2
Slide 3: MLP Care: The #1 Private Hospital Group in Turkey
MLP Care: The #1 Private Hospital Group in Turkey Two brands and one concept targeting three different price points with The largest hospital group in 30 Hospitals in consistently outstanding medical service Total Turkey quality Established in 1993, listed on BIST in 2018 ~18,000 Staff 1 6,000+ Beds
Slide 4: Our Growth Strategy is Intact
Our Growth Strategy is Intact MLP Care continues its asset light growth strategy Growing our existing business by increasing capacity utilization at large hospitals Expanding in metropolitans through mid- large scale hospitals (min. 100 bed capacity) Quick EBITDA ramp-up through leveraging MLP Care’
Slide 5: A network of hospitals located strategically across Istanbul
A network of hospitals located strategically across Istanbul VM Medical Park Maltepe Map of Istanbul Location: Maltepe / Istanbul Opening Date: December 2019 TOTAL CAPEX: TL 2.1 million Key Statistics 20k sqm 135 bed capacity 60 policlinic rooms Hospitals with Medical Park Brand 7 operating
Slide 6: Growth Opportunities in Ankara
Growth Opportunities in Ankara Map of Ankara VM Medical Park Ankara Medical Park Ankara Location: Keçiören/ Ankara Opening Date: March 2020 Hospitals with Medical Park Brand TOTAL CAPEX: Less than TL 1 million Liv Hospital Hospitals with Liv Hospital Brand Ankara Key Statistics 19k sqm 94 bed ca
Slide 7: Growth Opportunities in Gaziantep
Growth Opportunities in Gaziantep Map of Gaziantep Liv Hospital Gaziantep Location: Şehitkamil / Gaziantep Opening Date: September 2020 TOTAL CAPEX: TL 1.1 million Medical Park Key Statistics Gaziantep 40k sqm 258 bed capacity 70 policlinic rooms Hospitals with Medical Park Brand 8 operating
Slide 8: Planned Opening and M&A's in 2021 – 2022
Planned Opening and M&A’s in 2021 – 2022 # of Hospitals Liv Hospital İstanbul Target M&A’s (Planned) 5 4 1 25 Medical Park Liv Hospital 2021 Additions 2021-2022 Target M&A's Liv Hospital Location İstanbul Metropols Opening Date ~ Q2 2021 2021-2022 Key Statistics ~ 50k sqm 4 new hospitals
Slide 9: At a Glance: MLP Care 2020 Financial Highlights
At a Glance: MLP Care 2020 Financial Highlights Adj. EBITDA Revenue TL 4,015 m TL 1,049 m 8% Growth 26% Growth Revenue growth continued y-o-y despite the (2019: TL 3,704 m) (2019: TL 834 m) challenges of pandemic EBITDA margin supported by operational performance of hospitals and effective cost
Slide 10: Revenue Increased 8% in 2020 despite the COVID-19 Impact
Revenue Increased 8% in 2020 despite the COVID-19 Impact Revenue (TLm) 8.4% 4,015 3,704 21.6% 1,201 988 Q4 2019 Q4 2020 2019 2020 Denotes growth of Revenue vs. the same period of the last year 10
Slide 11: Diversified Revenue Structure Supported the Growth in 2020
Diversified Revenue Structure Supported the Growth in 2020 2020 Revenue from SSI was up by 33% in Q4 (13%) 2020 (SSI Insurance allows for a wide addressable market, which is c.98% of the (22%) 7% total population) 21% 8% Self pay increased by 23% in Q4 2020 28% Revenue from PMI, Top-up & Contr
Slide 12: # of People with Top-up Insurance Exceeds 1.6 million
# of People with Top-up Insurance Exceeds 1.6 million # of People with Top-up Insurance in Turkey 12.2020; 1,607 12.2019; 1,354 CAGR Growth 12.2018; 920 (2014-2020) (2019 – 2020) 71.0% 18.6% LTM Addition to Number of People with Top-up Insurance 8.2015 2.2019 10.2016 12.2017 10.2014 12.2014 2.2015 4
Slide 13: Revenue Climbs Up After Movement and Travel Restrictions
Revenue Climbs Up After Movement and Travel Restrictions Domestic Patient Medical Tourism Ancillary Business Revenues Revenues 15.8% (16.4%) (13.1%) 15.1% (21.8%) 25.5% 15.6% 266 3,408 340 9.1% 24.4% 7.8% 1,014 114 74 Q4 2020 2020 Q4 2020 2020 Q4 2020 2020 Revenue Growth Continued in Q4 Gradual reco
Slide 14: Strong Improvement in Both ARPV and ARPP in 2020
Strong Improvement in Both ARPV and ARPP in 2020 Outpatient Revenues (TLm) Inpatient Revenues (TLm) 9.9% 18.6% 35.2% 39.5% (25.3%) (20.8%) 428 690 (307) (364) 1,215 1,335 2,073 1,747 2019 Volume & Mix Price 2020 2019 Volume & Mix Price 2020 Average Revenue Per Visit (ARPV) Average Revenue Per Protoc
Slide 15: EBITDA Up by 26% in 2020 supported by prudent cost management
EBITDA Up by 26% in 2020 supported by prudent cost management EBITDA (TLm) 25.8% 17.7% 958 1,049 814 834 21.7% 19.5% 283 265 233 222 Q4 2019 1 Q4 2020 1 2019 1 2020 1 Q4 2019 2 Q4 2020 2 2019 2 2020 2 1 Adj. EBITDA: EBITDA TFRS adjustments that have no cash impact on relevant period and one-off inco
Slide 16: Prudent Cost Management
Prudent Cost Management Cost of Service and G&A Expenses as a % of Revenues Cost Saving Measures enables us to reach the favourable EBITDA Margin Adj. EBITDA Margin 22.5% 26.1% Material costs as a % of revenue declined in 2020 due 0.8% to decrease in the share of laboratory business which 0.9% has
Slide 17: Closed Open FC Net Debt Position
Closed Open FC Net Debt Position FX BASED NET DEBT 1 (in EUR m) 100 NET DEBT 90 80 20201 EUR30m EUR32m 70 equivalent of equivalent of FX Cash FX Cash 60 51 Balance Balance 50 42 40 30 46 20 10 65 - 51 Net Hard 2020 FMT Currency Debt Revenue (LTM) 46 Converted into TL (in EUR) (in EUR) 0 Nominal Net
Slide 18: Total Capex Decreased, Operating Cash Flow Improved
Total Capex Decreased, Operating Cash Flow Improved Maintenance Capex (TLm) Total Capex (TLm) Operating Cash Flow / EBITDA Free Cash Flow / EBITDA 85.7% 79.6% 69.9% 4.7% 4.1% 58.8% 2.3% 899 1.6% 733 173 166 663 490 58 92 2019 2020 2019 2020 2019 2020 2019 2020 % of Revenue % of Revenue % of EBITDA %
Slide 19: Accelerated Efforts for Digitalization After Pandemic
Accelerated Efforts for Digitalization After Pandemic Digital HR Digital Digital Contract Invoicing Management Digital Digital Supply Chain Doctor Digital Transformation Office Digital Digital Cost Control GDPR Digital Digital Customer Marketing Satisfaction 19
Slide 20: Why Invest in MLP Care?
Why Invest in MLP Care? 1 Operates in the Attractive Turkish Healthcare Market 2 Clear Leader in Private Hospital Provision 3 Strong Brand Recognition and Unique Business Model 4 Clinical Excellence and World Class Service Offering 5 Superior Historical Financial Performance 6 Outstanding Platform f
Slide 21: Operates In The Attractive Turkish Healthcare Market
1 Operates In The Attractive Turkish Healthcare Market Turkey is an attractive healthcare market with a growing elderly population and level of affluence, with significant scope for expansion compared to OECD players. Turkish Healthcare Spending to Providers1 (TLbn) Growth in Aging Turkish Populatio
Slide 22: Operates In The Attractive Turkish Healthcare Market
1 Operates In The Attractive Turkish Healthcare Market Private operators have increased their market share, by increasing capacity and by focusing on procedures with higher complexity. Private players now account for 22% of beds, but provide 53% of complex surgeries. Number of Hospital Beds (’000) N
Slide 23: Operates In The Attractive Turkish Healthcare Market
1 Operates In The Attractive Turkish Healthcare Market Supportive government policies have underpinned the expansion of private hospital groups Healthcare System and Key Participants Universal Healthcare Coverage with Patient Choice Regulation Funding Service Patients Universal healthcare coverage (
Slide 24: Clear Leader in Private Hospital Provision
2 Clear Leader in Private Hospital Provision MLP Care is the largest multi-specialty hospital group in Turkey and the only private player with a truly nationwide network MLP Care network (# of hospitals and locations) National and local leader with a network covering the greatest number of cities
Slide 25: Clear Leader in Private Hospital Provision
2 Clear Leader in Private Hospital Provision MoH is investing in the PPP program, but large private players do not expect to see an impact in the near / mid term Highly illustrative schematic of the Turkish Healthcare Sector PPP success factors Top end of the Private Hospital market City hospitals
Slide 26: Strong Brand Recognition And Unique Business Model Addressing Multiple Price Points
3 Strong Brand Recognition And Unique Business Model Addressing Multiple Price Points Two brands and one concept targeting three different price points with consistently outstanding medical service quality Overview and Positioning 30 Total Hospitals in Portfolio 5 Premium Premium segment 7 Premium m
Slide 27: Clinical Excellence And World Class Service Offering
4 Clinical Excellence And World Class Service Offering MLP Care benefits from a “Virtuous Circle” of best-in-class service, infrastructure and academic affiliations JCI accreditation SRC1 University affiliations The Gold Standard in Healthcare Globally The Global standard for quality surgical care M
Slide 28: Clinical Excellence And World Class Service Offering
4 Clinical Excellence And World Class Service Offering Top tier talent and patients are attracted to MLP Care’s unrivalled reputation, resulting in a steadily growing market share Ability to attract and retain top-tier physicians… CAGR Key points of attraction Proven track record of physicians recru
Slide 29: Superior Historical Financial Performance
5 Superior Historical Financial Performance EBITDA Growth > Net Sales Growth > CPI (Consumer Price Index) Net Sales (TLm) Adj. EBITDA1 (TLm) 18% 31% CAGR 2014-2020 CAGR 2014-2020 43% 33% 26% 21% 22% 19% 18% 18% 17% 20% 16% 9% 10% 8% 12% 12% 5% 9% 2015 2016 2017 2018 2019 2020 Net Sales Growth EBITDA
Slide 30: Outstanding Platform for Further Growth
6 Outstanding Platform for Further Growth Proven track record of greenfield expansions and M&A Total Hospitals 25 26 27 29 31 29 30 At Year End MLP Care has added on average c.400 beds p.a.1 Greenfield through greenfield projects since 2014 Multiple opportunities identified for expanding bed cap
Slide 31: Outstanding Platform for Further Growth
6 Outstanding Platform for Further Growth MLP Care has several avenues to continue its growth trajectory Top line growth via the Growth through favourable insurance scheme revenue diversification MLP Care has increased its market share in PMI (private medical insurance) Self-Pay share of total p
Slide 32: Appendix
Appendix Revenue Breakdown by Payor Type – 2020 Revenue – 2020 EBITDA – 2020 Revenue Segments – 2020 Costs Breakdown – 2020 Total Capex and Maintenance Capex – 2020 Operating Cash Flow – 2020 Historical Financial Statements Capital, Shareholder Structure & Subsidiaries Key Historical Milestones 32
Slide 33: Revenue Diversification Through Growing Segments
Revenue Diversification Through Growing Segments 2016 2020 (13%) (22%) 7% 6% 21% 5% 8% 28% 16% 39% 23% 11% 34% SSI Self-pay PMI, Top-up & Medical Tourism Other 33% 13% Contr. Inst. Revenue from PMI, Top-up & Contracted Institutions grew by 11% in 2020 Medical Tourism declined by 22% in 2020 due
Slide 34: Operating Cash Flow and Free Cash Flow improved in 2020
Operating Cash Flow and Free Cash Flow improved in 2020 Operating Cash Flow / Adj. EBITDA Free Cash Flow 85.7% 79.6% 733 899 65.7% 490 663 50 332 2018 2019 2020 2018 2019 2020 % of EBITDA 34
Slide 35: Historical Balance Sheet
Historical Balance Sheet Audited Audited TLm December 31, 2020 December 31, 2019 Cash and cash equivalents 375 306 Trade receivables 1,155 991 Inventory 113 90 Short term other assets 542 335 Current assets 2,185 1,722 Tangible and intangible fixed assets 1,441 1,327 Right of use assets 257 235 Defe
Slide 36: Historical P&L Statements
Historical P&L Statements Audited Audited Unaudited Unaudited Change (%) Change (%) TLm 2020 2019 Q4 2020 Q4 2019 Revenue 4,015 3,704 8.4% 1,201 988 21.6% Cost of service (-) (3,058) (2,852) 7.2% (909) (754) 20.6% Gross profit 956 852 12.3% 292 234 24.7% General administration expenses (-) (266) (30
Slide 37: Reconciliation from Reported EBITDA to Adjusted EBITDA
Reconciliation from Reported EBITDA to Adjusted EBITDA TLm 2020 2019 Q4 2020 Q4 2019 Net profit / (loss) 123 56 71 76 Tax (income) from operations 63 26 25 31 Depreciation and amortization of tangible and intangible fixed assets 252 266 64 68 Total interest expenses/(income) and fair value differenc
Slide 38: Capital, Shareholder Structure & Subsidiaries
Capital, Shareholder Structure* & Subsidiaries *Shareholding structure after public offering (excluding the 6,827k shares purchased by shareholders from publicly traded portion) Usta Group – Elbaşı Group Sancak İnşaat Turizm (Founders) Lightyear Healthcare Hujori Financieringen Nakliyat B.V. B.V. •
Slide 39: Key Historic Milestones
Key Historic Milestones • 1 hospital • Carlyle • TURKVEN • 1 hospital • MPARK • Founders Dr. • Dr. Usta, Adem acquired • 2 • 3 • 1 hospital acquired opened in acquired in Muharrem Usta Elbaşı and Stocks Ankara 40% stake hospitals hospitals 53.35% Samsun and Adem Sancak Group opened in starting to in
Slide 40: Disclaimer / IR Contact
Disclaimer This presentation may contain certain forward-looking statements concerning MLP Care’s future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available data. Act