Middle East Healthcare Company · TADAWUL:4009
Middle East Healthcare — FY2019 Earnings Presentation
16 slides from Middle East Healthcare's earnings presentation, March 2020
Slide 1: Middle East Healthcare Company (MEAHCO) Investor Presentation – 2019
Middle East Healthcare Company (MEAHCO) Investor Presentation – 2019 1
Slide 2: Table of contents
Table of contents • MEAHCO at a glance • Ongoing restructuring plan • Key financial indicators • Employees statistics • Capex and expansion plan • Shareholder information 2
Slide 3: MEAHCO's network of services
MEAHCO’s network of services • Saudi Arabia’s most geographically diversified healthcare player • Full fledged footprint in six cities (Jeddah, Asser, Riyadh, Madinah, Hail, Dammam) • Comprehensive network covering ~90% of Saudi Arabia’s population • Ongoing expansion into Makkah, along with Madinah
Slide 4: Expansion timeline
Expansion timeline Beverly Jeddah Asser Riyadh Madinah Hail Dammam Clinics • Est. 1988 • Est. 2000 • Est. 2001 • Est. 2003 • Est. 2017 • Est. 2018 • Est. 2020 • 217 beds • 400 beds • 300 beds • 300 beds • 150 beds • 20 clinics • 150 beds Notes • Based on licensed bed capacity. Operational bed capaci
Slide 5: Hospitals under management contract
Hospitals under management contract • Operational ➢ SGH Yemen – est. 2006 ➢ SGH Dubai – est. 2012 ➢ SGH Cairo – est. 2015 ➢ SGH Sharjah – est. 2018 ➢ SGH Ajman – est. 2019 • Pipeline ➢ SGH Alex West (Egypt) ➢ SGH Giza (Egypt) ➢ SGH Lahore (Pakistan) ➢ SGH Islamabad (Pakistan) ➢ SGH Karachi (Pakistan
Slide 6: Accreditation
Accreditation Jeddah Asser Riyadh Madinah Hail Dammam Accredited Accredited Accredited Accredited Postponed In process Accredited Accredited Accredited Accredited Accredited In process In process In process In process In process In process In process Accredited In process In process Accredited Accre
Slide 7: Ongoing restructuring plan
Ongoing restructuring plan • Leveraging the Group’s scale ➢ Appointed McKinsey, based on success fees, to standardize and restructure the group procurement cycle ➢ Renegotiated existing facilities’ terms with most of the banks at favorable terms ➢ Successful renewal of pricing with select insurance
Slide 8: Key financial indicators
Key financial indicators Revenue, Revenue growth EBITDA, EBITDA margin Net profit, Net profit margin 500 EBITDA EBITDA margin Net profit Net profit margin 9.2% 400 80 17.1% 20% 40 12% 9.9% 15.3% 10% SAR million 300 60 15% 30 SAR million SAR million 8% 200 40 10% 20 6% 4% 100 20 5% 10 2% 0 0 0% 0 0%
Slide 9: Operational KPIs
Operational KPIs Number of performed surgeries Utilisation rate Average length of stay 10,000 100% 5 4.28 8,000 80% 71% 4 3.71 66% 6,000 60% 3 Bed utilisation 4,000 40% 2 2,000 20% 1 0 0% 0 4Q18 4Q19 FY18 FY19 4Q18 4Q19 35,000 100% 5 4.58 4.16 30,000 80% 4 25,000 20,000 60% 52% 3 48% 15,000 Clinic u
Slide 10: Revenue structure
Revenue structure Revenue breakdown by service Revenue breakdown by clientele GPM breakdown by service 4Q18 4Q19 Insurance Ministry of Health Cash Others 4Q18 4Q19 300 100% 5% 3% 100% 250 18% 19% 80% 80% SAR million 200 60% 30% 28% 60% 150 100 40% 40% 50 47% 50% 20% 20% 0 IP OP Pharmacy Trading & 0%
Slide 11: Patients evolution
Patients evolution Historical trends FY19 vs. FY18 4Q19 vs. 4Q18 Number of inpatients Number of inpatients Number of inpatients 60,000 60,000 20,000 50,000 50,000 15,000 40,000 40,000 30,000 30,000 10,000 20,000 20,000 5,000 10,000 10,000 0 0 0 2015 2016 2017 2018 FY18 FY19 4Q18 4Q19 Number of outpa
Slide 12: Balance sheet and cash cycle
Balance sheet and cash cycle Cash conversion cycle Receivables, Receivables split Leverage FY19 1,200 1,109 Net debt/Equity (x) 350 321 1,000 0.7 292 Days on Hand (DoH) 300 800 0.6 SAR million 250 0.5 200 600 0.4 137 150 107 400 0.3 100 0.2 200 50 0.1 0 0 0.0 Receivables Payables Inventory Cash cycl
Slide 13: Employees statistics
Employees statistics Number of employees Headcount split by profession Saudisation rate 6,000 5,444 Doctors Nurses Allied Health & Admin Saudi Non-Saudi 4,976 5,000 16% 4,000 33% 3,000 FY19 FY19 2,000 59% 25% 1,000 67% 0 FY18 FY19 13
Slide 14: Capex and expansion plan
Capex and expansion plan • SGH Riyadh Outpatient Tower and Beds Expansion ➢ 134 bed, 76 clinic ➢ Capex 194 million ➢ To be operational 1Q 2021 • SGH Makkah Hospital ➢ 300 bed ➢ Capex SAR 389 million ➢ To be operational 2H 2021 • SGH Makkah Housing ➢ Capex SAR 114 million ➢ To be operational 2H 2021
Slide 15: Shareholder information
Shareholder information Stock Data: Shareholder structure Foreign ownership* Bloomberg / Reuters: MEH AB / 4009.SE Outstanding shares: 92,040,000 Free float, 60% 38.2% 49.0% Free float: 38.1% 50% Mkt. Cap: USD 686 million 40% 3M ADVT: USD 2.1 million 30% International 20% Finance 12.6% Corporation,
Slide 16: Thank you
SS (Sto) dyasall Glo wall Ssiul AS MIDDLE EAST HEALTHCARE COMPANY (MEAHCO) SAUDI GERMAN HOSPITALS GROUP ilolll gageuull Glut egoro Thank you 16
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