Mlp Saglik Hizmetleri As Class B · BIST:MPARK

Mlp Saglik Hizmetleri As Class B — MLP Care — H1 2019 Earnings Presentation

27 slides from Mlp Saglik Hizmetleri As Class B's earnings presentation, Aug 9, 2019

  1. Slide 1: MLP Care H1 2019 Presentation

    MLP Care H1 2019 Presentation 9 August 2019

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements 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 ava

  3. Slide 3: Muharrem Usta, Chairman & CEO

    Muharrem Usta Chairman & CEO 3

  4. Slide 4: Executive Summary

    Executive Summary  Real growth of revenue and EBITDA exceeding inflation • Revenue up 23% in Q2 2019, up 24% in H1 2019 • Adj EBITDA1 up 21% in Q2 2019, up 21% in H1 2019 • EBITDA excluding other income/(expense) items up 50% in Q2 2019, up 38% in H1 2019  Net Debt to Adj. EBITDA ratio came in at

  5. Slide 5: The Largest Private Healthcare Service Provider in Turkey

    The Largest Private Healthcare Service Provider in Turkey +2 +500 New Hospital New Beds in 2018 in 2018 17 Cities 20,000+ Staff 1 31 Hospitals +6,000 in Total Beds in Total 2,200+ Doctors ¹ Includes managed hospitals, full time and part-time staff 5

  6. Slide 6: Revenue Growth Well Above Inflation in H1 2019

    Revenue Growth Well Above Inflation in H1 2019 Revenue (TLm) 20% 24% CAGR 2014-2018 Growth Rate H1 2018 – H1 2019 26% 3000,0 24% 26% 21% 22% 19% 18% 21% 2500,0 17% 2000,0 20% 16% 16% 16% 15% 1500,0 11% 12% 1000,0 9% 9% 6% 1,518 1,843 2,160 2,576 3,132 1,470 1,822 2,027 500,0 1% 1 2014 2015 2016 2017

  7. Slide 7: Solid EBITDA Growth

    Solid EBITDA Growth Adj. EBITDA1 and EBITDA % 25% CAGR 2014-2018 800,0 38% 31% 31% 32% 35% 700,0 30% 600,0 23% 21% 23,4% 25% 500,0 13% 20% 15,5% 20% 15,9% 16,5% 400,0 13,8% 14,5% 12,9% 15% 16,1% 16% 16% 16% 300,0 10% 12% 200,0 9% 9% 5% 210 238 312 409 505 301 283 427 100,0 0% 2014 2015 2016 2017 201

  8. Slide 8: Double Digit Growth in Majority of Payor Types

    Double Digit Growth in Majority of Payor Types Revenue Breakdown by Payor Type – H1 2019 Other 50%  Revenue from PMI, Top-up & 10% Contracted Institutions grew Medical SSI by 42% in Q2 2019 Tourism 25% 12%  Medical Tourism grew by 4% 62% in Q2 2019 70%  SSI Insurance allows for a wide addressable

  9. Slide 9: # of People with Top-up Insurance Exceeds 1 million

    # of People with Top-up Insurance Exceeds 1 million # of People with Insurance (PMI and Top-up) in Turkey – 000s Growth CAGR (2014-2018) (H1 2018-H1 2019) 3,144 3,178 3500,0 2,214 9.2% 2,927 8.6% 3000,0 2500,0 920 782 1,002 64 94.5% 2000,0 28.1% 1500,0 2,150 2,224 0.9% 1.4% 1000,0 2,145 2,176 500,0

  10. Slide 10: Medical Tourism Revenue Up 70% in H1 2019

    Medical Tourism Revenue Up 70% in H1 2019 Medical Tourism Revenue (TLm) 41.7% 200 28.2%  Diversified and Balanced 52 Geography. Patients comes from: 150 35 100 213 35% 33% Europe 69.9% 50 125 Middle East and Africa 0 32% Former CIS and the Rest H1 2018 Volume & Mix Price & Fx H1 2019  Strong marke

  11. Slide 11: Burcu Öztürk, CFO

    MLPCARE Burcu Oztiirk CFO 11

  12. Slide 12: Revenue Up 24% in H1 2019

    Revenue Up 24% in H1 2019 Revenue (TLm) EBITDA (TLm) 1 26.3% 33.2% 24.0% 2.500 24.6% 37.6% 22.0% 500 2.000 2,027 23.4% 400 20.6% 427 1,822 49.6% 1.500 300 408 990 20.7% 301 1.000 200 889 283 500 100 133 125 0 0 Q2 2019 H1 2019 Q2 2019 H1 2019 H1 2019 (IFRS 16) 1 Adj. EBITDA: EBITDA TFRS adjustments

  13. Slide 13: Strong Growth in All Revenue Segments in H1 2019

    Strong Growth in All Revenue Segments in H1 2019 Domestic Patient Medical Tourism Ancillary Business Revenues Revenues 19.5% 75.8% 50.0% 19.4% 16.8% 69.9% 69.9% 28.1% 62.1% 213 178 18.5% 1,431 699 107 83 Q2 2019 H1 2019 Q2 2019 H1 2019 Q2 2019 H1 2019 Growth Continued in Q2 2019 Continued to Attract

  14. Slide 14: Strong Improvement in Both ARPV and ARPP in H1 2019

    Strong Improvement in Both ARPV and ARPP in H1 2019  Outpatient and Inpatient revenues made up 41% and 59% of total Domestic Hospital Business Revenues in H1 2019. Outpatient Revenues (TLm) Inpatient Revenues (TLm) 900 17.7% 1.100 16.2% 800 16.8% 1.000 700 12.4% 0.9% 900 3.8% 600 4 83 800 28 90 500

  15. Slide 15: Smart Cost Management Results in Profitability Growth

    Smart Cost Management Results in Profitability Growth Cost of Service and G&A Expenses as a % of  Material costs as a % of revenue Revenues increased due to the inflation Adj. EBITDA Margin 17.0% 16.5% adjustment of medicine and increase in share of laboratory services business revenues (with 6.6%

  16. Slide 16: Continued to Deleverage Balance Sheet in H1 2019

    Continued to Deleverage Balance Sheet in H1 2019 NET DEBT FX BASED NET DEBT (in EUR m) 2018 1 H1 2019 1 250 EUR72m EUR73m 204 (TL437m) (TL477m) 200 150 35% 34% 66% 100 Percentage 65% 72 73 50 TL806m TL931m Local Currency Local Currency - 2017 2018 H1 2019 Hard Currency Hard Currency Nominal TL1,243m

  17. Slide 17: FX Position of Income Statement – Excluding IFRS 16

    FX Position of Income Statement – Excluding IFRS 16 Hard Hard Currency as % TLm H1 2019 (TLm) Currency of total revenues 1,431 -- 30 Eylül Share of Medical Tourism Revenue in Domestic Hospital Revenue Foreign Medical Tourism 213 213 12% 2018 Total Revenue Ancillary 178 - - increased to 12% in Total

  18. Slide 18: FX Position of Income Statement – Including IFRS 16

    FX Position of Income Statement – Including IFRS 16 Hard Hard Currency as % of TLm H1 2019 (TLm) Currency total revenues Domestic Hospital Revenue 1,431 -- 30 Eylül Share of Medical Tourism Revenue in Foreign Medical Tourism 213 213 12% 2018 Total Revenue Ancillary 178 - - increased to 12% in Total

  19. Slide 19: Total Capex and Maintenance Capex Decreased

    Total Capex and Maintenance Capex Decreased Maintenance Capex (TLm) Total Capex (TLm) Operating Cash Flow / EBITDA 92.1% 2.9% 11.4% 250 63.1% 50 1.7% 200 200 230 40 150 4.5% 43 167 150 190 30 30 100 20 100 10 50 82 50 - - - H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 % of Revenue % of EBITDA  T

  20. Slide 20: Outlook & Prospects

    Outlook & Prospects Muharrem Usta – Chairman & CEO 20

  21. Slide 21: Outlook & Prospects

    Outlook & Prospects We will use our available resources and increase efficiency in 2019. Our targets are: Operational targets  Increase contribution of Medical Tourism  Accelerate the ramp-up of the new opened hospitals  Increase efficiency of the business through digitalization (invoicing/collec

  22. Slide 22: CARE

    CARE

  23. Slide 23: Closing Remarks

    Closing Remarks Muharrem Usta – Chairman & CEO 23

  24. Slide 24: Thank You!

    Thank You! MLP Care Investor Relations Deniz Can Yücel +90 212 227 5555 (Ext: 1148) deniz.yucel@mlpcare.com http://investor.mlpcare.com/en/

  25. Slide 25: Historical P&L Statements

    Historical P&L Statements TLm Reviewed Reviewed Reviewed H1 20191 H1 2019 H1 2018 Q2 20191 Q2 2019 Q2 2018 Revenue 1,822 1,822 1,470 889 889 720 Cost of service (-) (1,401) (1,500) (1,231) (694) (744) (619) Gross profit 422 322 239 195 144 101 General administration expenses (-) (143) (144) (123) (7

  26. Slide 26: Historical Balance Sheet

    Historical Balance Sheet Reviewed Reviewed Audited TLm June 30, 20191 June 30, 2019 December 31, 2018 Cash and cash equivalents 260 260 223 Trade receivables 981 981 899 Inventory 89 89 80 Short term other assets 269 269 276 Current assets 1,599 1,599 1,479 Tangible and intangible fixed assets 1,281

  27. Slide 27: Reconciliation from Reported EBITDA to Adjusted EBITDA

    Reconciliation from Reported EBITDA to Adjusted EBITDA TLm H1 20191 H1 2019 H1 2018 Q2 20191 Q2 2019 Q2 2018 Net profit / (loss) (25) (39) (8) (39) (42) (10) Tax income from operations (3) (6) (46) (9) (15) (14) Depreciation and amortization of tangible and intangible fixed assets 129 105 90 65 53 4

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