Garofalo Health Care S.p.a. · MIL:GHC
Garofalo Health Care — Conference Presentation (June 2019)
21 slides from Garofalo Health Care's conference presentation, Jun 6, 2019
Slide 1: GHC – Company Overview
GHC – Company Overview June 6, 2019 La salute è il bene più prezioso che l’uomo possa avere
Slide 2: Disclaimer
Disclaimer This presentation and any materials distributed in connection herewith (together, the “Presentation”) may contain “forward-looking statements”, which include all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-l
Slide 3: Highlights
Highlights GHC OVERVIEW 1 Leading private accredited patient care group with 60 year heritage and impressive financial results 2 Diversified business model by geography and sector and capacity to generate synergies High quality of health and social-assistance services thanks to cutting-edge faciliti
Slide 4: Confirmed all the elements presented at IPO...
Confirmed all the elements presented at IPO... Elements presented at IPO Post-IPO development - Several investments made in cutting-edge equipment including: ✓ • Da Vinci Xi, the most advanced robotic technology used for urologic surgery + new MOC (Computerized Bone Mineralometry) + new respirator t
Slide 5: …with growing economic and financial results in FY2018 and 1Q2019…
…with growing economic and financial results in FY2018 and 1Q2019… Elements presented at IPO Post-IPO development ✓ • Revenues 2018: €155.6m vs €136.7m (+13.9%, of which 2.5% organic and 11.4% M&A) • Adj. Op. EBITDA(1): €29.8m vs 24.9m (+19.7%, of which 8.3% organic and 11.4% M&A) • Adj. Op. EBITDA
Slide 6: …well ahead of timetable presented at IPO
…well ahead of timetable presented at IPO What we already delivered in just 7 months post IPO Future 2 acquisitions + 2 minority buyouts completed Continuous delivery on IPO promises Dec Jan Jan Feb May Jun 2H2019/2020 ‘18 ‘19 ‘19 ‘19 ‘19 ‘19 Building Finalization Project required for Scuola, Gravel
Slide 7: GHC: leading private accredited patient care group with best-in-class financial performance…
GHC: leading private accredited patient care group with 1 best-in-class financial performance… Garofalo Health Care (GHC) Group(1) Attractive Geographical Footprint Villa Garda • Leading private accredited patient 21 Patient Care Facilities Garda (VR) Additional 16.67% Villa Berica care group in Ita
Slide 8: …able to offer diversified health and social assistance services…
…able to offer diversified health and social assistance 2 services… Revenues breakdown by: 75.6% HOSPITAL & OUTPATIENT 22.8% 1.6% Sectors HOSPITAL TERRITORIALDEPENDENCY CARE AND SOCIAL ASSISTANCE OTHER REVENUES Acute Care PostACUTE POST Acute Residential DISTRICT District Outpatient Rents and Sub- 5
Slide 9: ... in well-invested facilities with cutting-edge equipment...
... in well-invested facilities with cutting-edge 3 equipment... Well-invested facilities with premium quality standards Comprehensive Real Estate ownership allows for high “stability”(1) At IPO Today Medical Imaging Surgery (general and specialized) c.170k sqm indoor and c.200k sqm indoor and outdo
Slide 10: ...led by top professionals, to build and reinforce GHC's reputation for the highest quality patient care
...led by top professionals, to build and reinforce GHC’s 3 reputation for the highest quality patient care Renowned medical team contributing to the field of research Quality and clinical excellence recognition ✓ GHC doctors are extremely active in the field of medical and scientific research… Lead
Slide 11: Organic growth expansion projects presented at IPO on track…
Organic growth expansion projects presented at IPO on 4 track… Project value presented Description Project update Scheduled timeline at IPO 1 ▪ Purchase a facility in Gravellona ▪ Building taken into €8.0m Q1 2019 Project of which: Toce providing post acute services possession. Works to begin ‘‘Grav
Slide 12: …and launch of new expansion projects for the Poliambulatorio Dalla Rosa Prati and Villa Garda in 2019
…and launch of new expansion projects for the 4 Poliambulatorio Dalla Rosa Prati and Villa Garda in 2019 Project value presented Description Project update Scheduled timeline at IPO 3 ▪ Renovation of the 1st floor of the ▪ The renovation work on the • Conclusion of Project renovation building in fro
Slide 13: Two acquisitions completed post IPO…
4 Two acquisitions completed post IPO… Poliambulatorio Dalla Rosa Prati Ospedali Privati Riuniti Nigrisoli Villa Regina Cash consideration €19.1m Cash consideration €66.7m % 100% % 100% EV €28m EV €50m Acquisition timeline Acquisition timeline • 21/12/2018 (IPO+42 days): preliminary contract signed
Slide 14: … expected to generate significant synergies in the next 12 months for Ospedali Privati Riuniti
… expected to generate significant synergies in the next 12 4 months for Ospedali Privati Riuniti Illustrative data Expected in pre-synergies 12 months Multiplier in line Acquisition multiple 12.5x with the one used in previous acquisitions Op. EBITDA 14.6% >20% Margin (%) Source of main synergies:
Slide 15: Ospedali Privati Riuniti - overview
4 Ospedali Privati Riuniti - overview Facility Highlights Ideal Geographic Positioning • 170 authorized beds(1), divided between Villa Regina (50, of which 33 are acute care and 17 rehabilitation and long-term GHC facilities located in the Emilia-Romagna Region care) and Nigrisoli (120, of which 69
Slide 16: …+3 minority buyouts
4 …+3 minority buyouts Casa di Cura Prof. Nobili Villa Garda Cash consideration €2.6m Cash consideration €4.0m % 42.8%(1) % 16.67%(2) Acquisition timeline Acquisition timeline • 07/01/2019 (IPO+59 days): additional 30.75% • 05/06/2019 (IPO+211 days): acquisition of 16.67% • 16/01/2019 (IPO+68 days):
Slide 17: ...in accordance with the same strategy and M&A discipline presented at IPO
...in accordance with the same strategy and M&A 4 discipline presented at IPO Consistency of the M&A strategy with the one presented at IPO Consistency of the M&A discipline with the one presented at IPO ✓ ✓ ❑ Reputation for medical excellence ✓ Direct Experienced and involvement of the CEO skilled
Slide 18: Extensive M&A pipeline with targets under analysis in Italy's strongest Regions
Extensive M&A pipeline with 20 targets under analysis in 4 Italy’s strongest Regions M&A Pipeline Current M&A negotiations ongoing 20 Targets Target ✓ Poliambulatorio Dalla Rosa Prati under analysis #1 ✓ Target Ospedali Privati Riuniti #2 Target Exclusivity agreement signed #3 Target Non binding off
Slide 19: Seamless and effective integration platform already delivering visible results
Seamless and effective integration platform already 5 delivering visible results Poliambulatorio Dalla Rosa Prati - Case study Successful integration within GHC Group in just 2 months Integration Deal Integration roadmap Closing T+15 days T+30 days T+45 day completed (05.02.2019) T+60 days GHC Task
Slide 20: FY2018 results delivered substantial growth, strong cash generation and solid financial structure…
FY2018 results delivered substantial growth, strong cash 6 generation and solid financial structure… Unique combination of growth boosted by M&A… …best-in-class profitability… CAGR 2016 – 2018 Revenues (€m), Op. EBITDA(1) (€m) and margin evolution (%) 3.2% 13.6% 18.2% 19.1% Revenues 8.8% 12.0% 155.6
Slide 21: …confirmed by a solid Q1 2019 performance
6 …confirmed by a solid Q1 2019 performance Solid growth in revenues and profitability… …coupled with positive cash position €m M&A contribution due to 2 43.5 months of Poliambulatorio Dalla Rosa Prati 39.9 2.7 (6,6) (1) Does not include impact from the OPR acquisition 20.9% 21.3% 9,2 8,3 (47,3) 0.7
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