Dr. Sulaiman Al-habib Medical Services Group Co. · TADAWUL:4013
Dr. Sulaiman Al-habib Medical Services — Q3 2020 Earnings Presentation
37 slides from Dr. Sulaiman Al-habib Medical Services's earnings presentation, October 2020
Slide 1: Q3 2020 Investor Presentation
Q3 2020 Investor Presentation As of 30 September 2020
Slide 2: Disclaimer
Disclaimer Disclaimer and important information in relation to this presentation This presentation has been prepared solely for use as earnings presentation of Dr. Sulaiman Al Habib Medical Services Group Company (the “Company”). By attending or by reading this presentation, you agree to be bound by
Slide 3: Presenting team
Presenting team Nasser Al Hagbani Faisal Al Nassar Chief Executive Officer Chief Financial Officer Q3 2020 Investor Presentation 3 October 2020
Slide 4: Agenda
AGENDA Growth strategy How we performed Spotlight Technology and medical excellence Appendix #1 About HMG Appendix #2 Summarized financials Q3 2020 Investor Presentation 4 October 2020
Slide 5: Growth strategy
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Slide 6: Equity story and strategy
Equity story and strategy A well-defined strategy enhanced by our core values Vision Mission To be the most trusted healthcare provider in medical excellence and To develop and operate state of the art medical facilities and provide patient experience globally innovative healthcare services to creat
Slide 7: Key messages
Key messages A best-in-class healthcare leader with a clear growth strategy Best-in-class Catalysts for value creation Efficiency drivers • Regional integrated healthcare provider with • Technology: Pioneer in healthcare • Efficient cash conversion cycle: shortest 25-year track record technology, aw
Slide 8: HMG is contributing to the goals of Vision 2030
HMG is contributing to the goals of Vision 2030 KSA has set a target to increase private sector participation in the healthcare industry to 35% by 2020 Commissioning Primary Long term of hospital care care Rehabilitation services and medical cities Areas of focus for privatization Home care Pharmacy
Slide 9: Business structure
Business structure A fully integrated healthcare services provider Hospitals Pharmacies HMG Solutions ▪ 7 hospitals in Saudi Arabia and ▪ Outpatient pharmacies as part of the ▪ Cloud Solutions: technology Arms Dubai hospitals including HIS, e-medicine, mobile ▪ 1,900+ beds and 1,370+ clinics • 13 ph
Slide 10: Where we operate
Where we operate With total built-up area of 689,000+ m2, HMG owns most of its hospital properties Owned Operated hospital (management agreement) Under constructions Operated ICU Implemented HIS Opened 1995 (OPD) Olaya Medical Opened 2019 Complex Khobar Opened 2008 (INP) Beds 458 Beds 260 Clinics 30
Slide 11: How we performed
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Slide 12: Projects update: North Riyadh
Projects update Solidifying our market leadership through robust expansion plan North Riyadh 100% SAR 669.7 mn SAR 2.2 bn Ownership Land Construction 2023 500 300 Expected Beds Clinics Land Design Excavation MoH license Construction Excavation Total workforce • Raft 100% Complete • 742 HMG Engineeri
Slide 13: Projects update: South-West Jeddah
Projects update Solidifying our market leadership through robust expansion plan South-West Jeddah 50% SAR 91 mn SAR 1.5 bn Ownership Land Construction 2023 330 245 Expected Beds Clinics Land Design Excavation MoH license Construction Excavation Total workforce • Shoring Wall 100% completed • 548 HMG
Slide 14: Projects update: New Takhassusi Maternity and Pediatric Hospital
Projects update Solidifying our market leadership through robust expansion plan New Takhassusi Maternity and Pediatric Hospital 100% SAR 80.8 mn SAR 391 mn Ownership Land Construction 2024 145 100 Expected Beds Clinics Land Design Excavation MoH license Construction Excavation Total workforce • Exca
Slide 15: Projects update: North Jeddah
Projects update Solidifying our market leadership through robust expansion plan North Jeddah 100% SAR 243.5 mn SAR 1.5 bn Ownership Land Construction 2024 350 270 Expected Beds Clinics Land Design Excavation MoH license Construction Medical Center at Diplomatic Quarter Leased 10 Years 17 2021 Agreem
Slide 16: Highlights: Q3 2020
Highlights: Q3 2020 Operations Mobile application Q3 2020 Strategic partnership with Dubai Total Download 735k+ downloads Growth 45% Government Workshop Spreading awareness of Booked Appointments 354k+ appointments Growth 87% breast cancer Medical excellence Transactions 97m+ transactions Growth 388
Slide 17: Financial highlights: Q3 2020
Financial highlights: Q3 2020 Revenue by segment SAR million Gross profit 60.2% Gross profit Margin +32.4% Q3 2020 559 Q3 2020 34.4% Q3 2019 349 Q3 2019 28.4% Q3 2019 Q3 2020 SAR (Millions) SAR (Millions) 40 91 3.3% 5.6% 203 261 EBITDA 53.9% EBITDA margin 16.5% 16.1% Q3 2020 416 Q3 2020 25.6% 1,227
Slide 18: Healthy balance sheet / 9-month
Healthy balance sheet / 9-month As of Sep 2019 As of Sep 2020 Total assets Total assets SAR 8.2 billion SAR 9.0 billion ROE ROA 9M 2020 20.4% 9M 2020 10.9% Cash, time 14.6% Current deposit & bank 18.4% 20.9% 18.3% 9M 2019 18.5% 9M 2019 9.8% liabilities balances Accounts receivable 18.2% 12.2% Non- R
Slide 19: Low leverage levels / 9-month
Low leverage levels / 9-month Total liabilities and equity SAR million 120.00% Total Liabilities/Total Assets Total Liabilities/Equity 100.00% 9M 2020 0.45x 9M 2020 0.81x 9M 2019 0.45x 9M 2019 0.80x 80.00% 4,532 55.5% 55.4% 4,986 60.00% Net Debt / EBITDA Net Debt / Equity 9M 2020 0.41x 9M 2020 0.12x
Slide 20: Total cash dividends for shareholders: Q3 2020
Total cash dividends for shareholders: Q3 2020 Distributed dividends Cash dividends / Q3-2020 0.60 Total distributed dividends SAR 210 million 0.50 % of capital 6% (equivalent to SAR 0.60 per share) 210 175 0.40 Eligibility date 29 October 2020 140 Date of distribution 15 November 2020 Total cash di
Slide 21: Investor Relations: IR Optic
Investor Relations: IR Optic Listening to our capital markets partners We want to know your views… Respecting your time and your preferences Ongoing effort to ensure high levels of disclosure and We fully appreciate the time constraints facing the investment transparent communications community Our
Slide 22: Spotlight: Technology and medical excellence
Spotlight Technology and medical excellence
Slide 23: Developing cutting edge technology
Developing cutting edge technology Pioneer in award-winning hospital information system and applications in the MENA region 15+ Years of 70% Saudization experience HMG Solutions’ footprint in deploying technology solutions in healthcare domain 400+ Employees 11 Products 23 International 27 Digital h
Slide 24: Pioneer in healthcare technology
Pioneer in healthcare technology Better medical outcomes, exceptional patient experience, and advanced operational practices E-medicine HIS (VIDA) Mobile application Tele-ICU ▪ First-of-its-kind electronic portal medical record anywhere anytime • The largest in the world (Guinness • Helps in storing
Slide 25: Pioneer in healthcare technology (cont’d)
Pioneer in healthcare technology (cont’d) Introducing the latest medical equipment MRI CT Scan CATH Lab The first in the region with lightweight coil High definition imaging for all body parts All heart related diagnoses in high design and noise cancelation that with exceptionally low dose of X-ray
Slide 26: Pioneer in healthcare technology (cont’d)
Pioneer in healthcare technology (cont’d) Introducing the latest medical equipment CSSD Laboratory IVF Lab The best technology in the region to Fully digital and integrated laboratories, Safe environment for embryos and disinfect and sterilize surgical instruments allowing for fast and accurate diag
Slide 27: Attracting and retaining top talent
Attracting and retaining top talent Our employees are our most valuable assets Physician qualifications 15+ average years’ experience 42% 4+ years physician 41% retention rate 17% 100+ recruiting offices 90+ nationalities 14 fellowship programs to train 50+ Saudi physicians Western (including North
Slide 28: Appendix #1: About HMG
Appendix #1 About HMG
Slide 29: Strong track record in construction and ramp-up
Strong track record in construction and ramp-up On average, opening a new hospital every 29 months, completing construction in 33 months and ramping-up in 16 months Beginning of Hospital Completion of construction Positive EBITDA construction Olaya Medical Center 1993 1995 24 months Dubai outpatient
Slide 30: Diverse board of directors
Diverse board of directors Our success is driven by our people 3 Non-Executives 3 Executives 3 Independents Dr. Sulaiman Al Habib Nasser Al Haqbani Mazen Al Rumaih Chairman Board Member and CEO Vice Chairman • Founder of HMG • Board member, Saudi Center for • Chairman, Saudi Fransi Capital • Previou
Slide 31: Experienced senior management
Experienced senior management Highly experienced, high caliber management Nasser Al Hagbani Chief Executive Officer Core functions Corporate functions Abdulwahab Abdullah Al Harbash Hesham Al Habib Faisal Al Nassar Al Abdulwahab Vice President of Vice President of Chief Financial Officer Chief Opera
Slide 32: Appendix #2: Summarized financials
Appendix #2 Summarized financials
Slide 33: Summary: Balance sheet
Summary: Balance sheet As at 30 September 2020 SAR million As of Sep 2020 As of Sep 2019 Change % Current Assets 3,266 2,989 9.25% Inventory 381 296 28.70% Investments 37 40 -7.02% Fixed Assets 5,323 5,142 3.52% Total Assets 9,007 8,467 6.37% Current Liabilities 1,653 1,495 10.55% Non-Current Liabil
Slide 34: Summary: Income statement
Summary: Income statement As at 30 September 2020 SAR million Q3 2020 Q3 2019 Change% YTD 2020 YTD 2019 Change% Revenue 1,623.9 1,226.7 32.4% 4,170.3 3,611.8 15.5% Cost of revenue (1,065.0) (877.8) 21.3% (2,851.7) (2,524.0) 13.0% Gross profit 558.9 349.0 60.2% 1,318.6 1,087.9 21.2% Selling and marke
Slide 35: Summary: Cash flow statement
Summary: Cash flow statement As at 30 September 2020 SAR million 9M 2020 9M 2019 Change % EBT before minority and Zakat 788.2 638.4 23.5% Depreciation 238.6 184.7 29.2% Accounts Receivable 291.4 (274.1) (206.3%) Inventory (84.9) (39.9) 112.5% Prepaid Expenses (2.4) (53.3) (95.4%) Accounts Payable (4
Slide 36: Q&A
Q&A Q3 2020 Investor Presentation 36 October 2020
Slide 37: Dr. Sulaiman Al Habib Medical Services Group contact details
Dr. Sulaiman Al Habib Medical Services Group Tel: +966 11 525 9999 Fax: +966 11 462 0096 Email: investor.relations@drsulaimanalhabib.com P.O. Box 301578 Riyadh 11372, Kingdom of Saudi Arabia www.hmg.com Q3 2020 Investor Presentation 37 October 2020
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