Medicover Ab Class B · OMXSTO:MCOV_B

Medicover Ab Class B — Q2 2024 Earnings Presentation

19 slides from Medicover Ab Class B's earnings presentation, Jul 25, 2024

  1. Slide 1: Web cast presentation

    Web cast presentation Q2 results presentation Fredrik Rågmark, CEO & Joe Ryan, CFO 25 July 2024

  2. Slide 2: Disclaimer regarding forward-looking statements

    DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain certain forward-looking statements and opinions. Forward-looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future that, by example, conta

  3. Slide 3: Business overview

    a > a MEDICOVER Business overview

  4. Slide 4: Continued strong organic growth and cash generation

    Continued strong organic growth and cash generation  Continued strong growth of 20.0%, organic growth of 16.5%.  Solid performance across divisions and geographies, especially in Poland.  Continued member growth from Q1 record levels – 1.8 million members by the end of Q2.  Strong laboratory tes

  5. Slide 5: Continued solid organic growth

    Continued solid organic growth Commentary Revenue split per country / payer2 Consolidated revenue  Revenue €509.4m (€424.7m), +11% +19% up 20.0%, organic growth of +6% 4% 6% +16.7%3 509.4 500 5.6 16.5%. 9% 50% +24% 424.7 13% +22.0%3 +24% 0.8 400  Acquired revenue €5.6m. 362.2 18% 28,0 300  Fee-Fo

  6. Slide 6: Improved profitability driven by operational leverage from previous growth initiatives

    Improved profitability driven by operational leverage from previous growth initiatives  EBITDA €70.6m (€58.3m), increased by 21.1%, 80 25% a margin of 13.8% (13.7%).  Adj EBITDA €74.4m (€61.1m), a margin of 20% 14.6% (14.4%). 60  Adj EBITDAaL €47.1m (€36.7m), a margin of 15% 9.2% (8.6%). 40 10% 

  7. Slide 7: Healthcare Services – Poland and Romania key growth contributors

    Healthcare Services – Poland and Romania key growth contributors Sales by country2  Revenue was €352.6m (€292.5m), up 20.6% 400 +13% with an organic growth of 16.4%, price 350 +31% 9% representing ~8.1pp of the growth. 11% 300 13% +6%  Acquired revenue was €1.4m. 250 67% +23%  FFS* grew by 18.6%

  8. Slide 8: Healthcare Services – stabile margin development

    Healthcare Services – stabile margin development  EBITDA grew by 22.0% to €54.6m (€44.8m), a margin 60 25% of 15.5% (15.3%).  EBITDAaL was €34.2m (€26.8m), a margin of 9.7% 50 20% (9.2%). 40  Positive margin development is driven by most 15% businesses but is especially apparent in Poland, with a

  9. Slide 9: India hospital network – continued focus to mature facilities

    India hospital network – continued focus to mature facilities Share of Maturity <18 revenue (LTM) months 2% 1 21% hospital Maturity 77% <36 months Share of 5 beds hospitals 3% 24% Maturity >36 months 73% 15 hospitals 9

  10. Slide 10: Diagnostic Services – solid volume-driven organic growth

    Diagnostic Services – solid volume-driven organic growth Sales by country2  Revenue was up 17.9% to €162.9m (€138.1m), with an 200 +24% organic growth of 16.0%, volume/mix ~13.7pp / price 10% +11% ~2.3pp. 11% +20% 49% 150  Acquired revenue was €4.2m. 14% +18% 17%  Good performance across all busi

  11. Slide 11: Diagnostic Services – significant margin improvement

    Diagnostic Services – significant margin improvement  EBITDA of €26.4m (€20.3m), a margin of 60 35% 16.2% (14.7%). 30% 50  EBITDAaL of €19.6m (€14.0m), a margin of 40 25% 12.0% (10.1%). 20% 30  Good volume growth across all markets, 15% primarily FFS, flow through contribution into 20 profit meas

  12. Slide 12: Financial overview

    a > a MEDICOVER Financial overview

  13. Slide 13: Financials

    Financials  Adjusted EBITDAaL (EBITDA after lease costs) – more like cashflow as real estate lease costs a recurring cashflow for the Group.  Grew by 28% to €47.1m (€36.7m), with margin expanding to 9.2% (8.6%).  HS – €34.2m (€27.7m), margin of 9.7% (9.4%), flow through on incremental volume, new

  14. Slide 14: Financials

    Financials 700 Average duration of 5,0 debt portfolio 3.5 years 4,5 600  €45m new debt issue, 4 year maturity. €300m undrawn facilities 4,0  Assumed €24.4m deferred payments for acquisitions & non- 500 + cash and ST inv 3,5 controlling interest of a German laboratory business for half 400 3,0 year

  15. Slide 15: Financials

    Financials  Capex at €25.4m (24.3), down compared to Q1, 5.0% (5.7%) of revenue  865k m² medical space +25k m² LTM +253k m² over 2022 / 2023 / 2024 70 Capex, €m 70 Free recurring cash flow Organic growth investment FR C/F % of revenue Maintenance Growth Healthcare Diagnostic 60 6,0% 60 60 6.4% % o

  16. Slide 16: Financial targets 2023-2025

    Financial targets 2023-2025 Organic revenue, €m Adjusted EBITDA (organic), €m Leverage 3.3x Q2 2023 ≤3.5x 2 200 Can exceed over 350 shorter periods 1 510 1 746 234 254 Dividend policy, share of net profit ≤50% 2022 base 2023 Run rate Q2 2025 target 2022 base 2023 Run rate 2025 target 2024 Q2 2024 

  17. Slide 17: Key takeaways

    Key takeways  Continued strong organic growth of 16.5%, driven by strong demand across divisions and geographies.  Continued member growth from Q1 record levels – 1.8 million members by the end of Q2.  Strong laboratory test volume growth, up 19.4%.  Robust margins are driven by operational leve

  18. Slide 18: Thank you!

    =~ MEDICOVER Thank you! CARING FOR YOUR HEALTH IS ALL WE DO

  19. Slide 19: Financial calendar

    Financial calendar Report Date Webcast Q3-report 30 October 2024, 07.45 CET 09.30 CET 19

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