Med Life Sa · BVB:M
Med Life Sa — Investor Presentation (June 2024)
55 slides from Med Life Sa's investor presentation, June 2024
Slide 1: MedLife Group
MedLife Group June 2024 www.medlife.ro / www.medlifeinternational.com
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of Med Life SA’s securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy Med Life SA’s securities. Neither this presentat
Slide 3: MedLife at a glance
MedLife at a glance • Leading private healthcare provider in Romania and one of the largest players in CEE. • Balanced and highly synergic business model, with 6 mutually reinforcing business lines and 2 distinct brands (MedLife and Sfânta Maria) that capture revenue from patients from all disposabl
Slide 4: Agenda
1 • Our History • MedLife on BVB Selected Acquisitions About • • Romanian Healthcare System • • Shareholder Structure Corporate Governance Us • MedLife Medical System • 2023 Key Messages • MedLife on BVB • Outlook 2 • MedLife Network • Maternities & Stem Cells Bank Our • Hyperclinics & Clinics • Cor
Slide 5: About Us
About Us • Our History • Selected Acquisitions • Romanian Healthcare System • Romania Macro Perspectives • MedLife Medical System • Shareholder Structure • MedLife on BVB • Corporate Governance • 2023 Overview • Q1 2024 Key Messages • Outlook 1
Slide 6: Our History
Our History SGAM, part of Group Societe The 2 nd MedLife expands 2 important Pharma MedLife completes the Generale, becomes largest in Hungary, by transactions are st 1 MedLife acquisition of Nord shareholder and acquisition is MedLife shares acquiring completed: a chain of hyperclinic is Group and
Slide 7: Selected Acquisitions
Selected Acquisitions PDR Group in Brasov (83% ownership) - Genesys Grup in Arad (83% ownership) - Sama Medical Center (90% ownership) – outpatient units, Prima Medical (100% ownership) multidisciplinary hospital, outpatient multidisciplinary hospital, outpatient units day hospitalization and labs i
Slide 8: Romanian Healthcare System
Romanian Healthcare System • The Romanian health system is hospital-centric, with high bed capacity. Patients seeking timely care often bypass primary care facilities and go directly to hospitals. As a result, nearly half of all health financing goes towards inpatient care. Bypassing primary care is
Slide 9: Romanian Healthcare System
Romanian Healthcare System Health spending per capita in Romania remains the lowest among EU countries Source: OECD Health Statistics 2023 (data refer to 2021, except Malta (2020)). Note: The EU average is weighted. 9 1. About Us 2. Our Network 3. Q1 2024 Financial Results 4. Financial Overview
Slide 10: Romanian Healthcare System
Romanian Healthcare System Romania spends less than the EU average in all areas Source: EC Romania Country Health Profile 2023 report, OECD Health Statistics 2023 (data refer to 2021). Notes: 1. Includes curative-rehabilitative care in hospital and other settings; 2. Includes only the outpatient mar
Slide 11: Romanian Healthcare System
Romanian Healthcare System Indicator 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f Healthcare Expenditure Trends, Historical Data & Forecasts Health spending, USDbn 13.426 13.565 15.573 17.104 18.056 19.514 21.550 23.653 25.558 Health spending, USDbn, % YoY 23.13 1.03 14.80 9.84 5.56 8.08 10.44
Slide 12: Romanian Top Private Healthcare Providers
Romanian Top Private Healthcare Providers 2022 Revenues % Market Peers (EUR mn) Share* MedLife** 405 12% Regina Maria*** 325 9% Medicover**** 178 5% Sanador***** 124 4% TOTAL 1,031 30% * Private healthcare market at EUR 3.5 bn ** Pro-forma figures for MedLife Group. *** Regina Maria 2022 Sustainabil
Slide 13: Household consumption to become main GDP growth driver
Household consumption to become main GDP growth driver GDP (real, s.a., q/q) GDP (real, y.o.y) Contributions to real GDP growth, demand side Annual 2021 2022 2023 2024e 2025e GDP real 5.7% 4.1% 2.1% 2.6% 3.9% CPI (y.o.y) 5.1% 13.7% 10.5% 5.5% 3.7% Private consumption 7.5% 5.8% 2.9% 3.1% 3.4% Source:
Slide 14: Wage evolution
Wage evolution Real wage growth (12mo average, %) Real wage growth (Jan-2000=100) Average wage vs EU average Nominal wage growth in Romania ERSTE Group Research reports. 14 1. About Us 2. Our Network 3. Q1 2024 Financial Results 4. Financial Overview
Slide 15: MedLife Medical System
MedLife Medical System Founded in 1996, MedLife Group is the leading private healthcare provider in Romania*, assisting over time over 6 million unique patients. It operates the widest network of clinics, one of the largest networks of medical laboratories, mono and multidisciplinary hospitals and h
Slide 16: Unique Revenue Capture Model
MedLife Medical System: Unique Revenue Capture Model Flow of Referrals Among Business Lines Hospitals Hyperclinics Maternities Clinics MedLife Dentistry ecosystem over Laboratories Stem Cells Pharmacies Bank 6 million unique patients 16 1. About Us 2. Our Network 3. Q1 2024 Financial Results 4. Fina
Slide 17: MedLife on BVB
MedLife on BVB 6.8 6.0 5.3 4.5 3.8 3.0 2.3 1.5 0.8 0.0 Trading Price Var. Volume Value Index inclusion Analyst coverage performance (%) 29 May 2024 5.50% 487,389 2,457,673.90 BCR Caius Roa Rapanu BET-XT | BETPlus | BET-TR | 1 week 12.61% 2,665,685 12,839,039.84 BVB BET-XT-TR | BET-TRN | BET- XT-TRN
Slide 18: Shareholder structure – March 2024
Shareholder structure – 31 March 2024 % Share capital* Largest shareholders (>5% ownership) 0.1% Name % share capital 6.7% 14.8% Marcu Mihail 14.77% 10.4% Cristescu Mihaela Gabriela 14.04% 10.5% 14.0% NN Pilar II Pension Fund** 13.24% Marcu Nicolae 10.41% 43.5% Allianz-Tiriac Pilar II Pension Fund**
Slide 19: Corporate Governance
Corporate Governance Executive Team Mihai Marcu CEO Nicolae Marcu Dorin Preda Alina Irinoiu Radu Petrescu Mariana Brates Mirela Dogaru Larisa Chiriac Vera Firu Marius Petrila Chief Chief Chief Human Healthcare Procurement Commercial Medical Accounting IT Finance & Financial Resources & COO Director
Slide 20: 2023, marked by good dynamics and sustained investments
2023, marked by good dynamics and sustained investments for the benefit of patients Focused mainly on the integration and consolidation of the new companies under MedLife umbrella. Repositioned the Group’s business strategy, based on crisis resilient medical drivers aimed at strengthening the perfor
Slide 21: Q1 2024 Key messages
Q1 2024 Key messages Consistent evolution of the financial and operational performance of the Group. Growth trend of over 20% YoY on average maintained since listing on the Bucharest Stock Exchange; Consolidated pro-forma Turnover of RON 647 million, up by 22% compared to same period last year; Stro
Slide 22: Outlook 2024
Outlook 2024 Strategic priorities: • finalization of the Medici`s Hospital in Timisoara & MedLife Hospital in Craiova; • continued development of the MedLife Park project; • CAPEX estimated to EUR 25 million for 2024, including maintenance CAPEX. Focus on: • optimizing the operational flows and proc
Slide 23: Our Network
Our Network • MedLife Network • Hyperclinics & Clinics • Dentistry Centers • Hospitals • Maternities & Stem Cells Bank • Laboratories • Pharmacies 2
Slide 24: MedLife Network
MedLife Network Legend: Romania Hospitals Maternities Hyperclinics Hungary Pharmacies Dentistry Centers Laboratories Clinics No. 1 in Romania CEE expansion 24 1. About Us 2. Our Network 3. Q1 2024 Financial Results 4. Financial Overview
Slide 25: Hyperclinics & Clinics
Hyperclinics & Clinics Hyperclinics Hyperclinics & Clinics • One stop shop concept pioneered by the Group in Romania: includes medical Dentistry outpatient specialties, providing in one single Centers place, clinical examinations and imaging. • Designed for larger urban areas, with a x2 x2 populatio
Slide 26: Dentistry Centers
Dentistry Centers Hyperclinics DENT ESTET by MedLife, the only dental & Clinics network in Romania specialized in orthodontic services by age segment: Dentistry • 17 medical units with 3 acquisitions Centers completed: Krondent in Brasov, Stomestet in Cluj and Oradent in Oradea. • Highly specialized
Slide 27: Hospitals
Hospitals Hyperclinics Largest network of private hospitals in & Clinics Romania, with over 1.250 beds, and a wide range of medical and surgical specialties. Multidisciplinary Inpatient units Dentistry Centers • MedLife Genesys Hospital in Arad • MedLife PDR Hospital in Brasov • Lotus Hospital in Pl
Slide 28: Maternities & Stem Cells Bank
Maternities & Stem Cells Bank Hyperclinics & Clinics • MedLife Grivita Maternity is the 1st Dentistry private maternity hospital in Bucharest Centers accredited by UNICEF as Baby-Friendly Hospital. Hospitals • Maternities have birth blocks consisting of natural delivery rooms and cesarean delivery r
Slide 29: Laboratories
Laboratories Hyperclinics & Clinics • Largest network of private laboratories in Romania. • The laboratories are using the latest Abbott Dentistry Centers technologies. • Full range of tests performed from standard 2 blood tests to complex genetic analysis. Hospitals • Partnership with laboratories
Slide 30: Pharmacies
Pharmacies Hyperclinics & Clinics • Own laboratory, where clients can Dentistry Centers benefit from specific products. • NHIH contracts for free and Hospitals subsidized prescriptions. • PharmaLife own laboratory & own brand of products: DoctorLife. Maternities • Pharmaceutical distribution: leadin
Slide 31: Q1 2024 Financial Results
Q1 2024 Financial Results • Consolidated Statement of Profit and Loss • Pro-forma Figures • QoQ Evolution • Operational KPIs • OPEX Evolution • Consolidated Statement of Financial Position • Debt Position • Consolidated Statement of Cash Flow 31
Slide 32: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss • Consolidated pro-forma Turnover 3M 2023 3M 2024 Pro-forma 3m 2024 of RON 647m, up by 22% YoY, % var. % var. IFRS IFRS adjusted Pro-forma Gross sales 529,453,478 646,621,900 22.1 % - 646,621,900 22.1 % with a strong evolution in almost Net sales (less NHP)
Slide 33: Pro-forma Figures
Pro-forma Figures Pro-forma Revenues Pro-forma EBITDA 98,148,097 99,065,868 646,621,900 614,677,698 0 0 917,771 -31,944,202 3m 2024 Acquisitions National 3m 2024 3m 2024 Acquisitions One-off 3m 2024 IFRS Program Pro-forma IFRS expenses Pro-forma Reclass From IFRS Revenues to Pro-forma Revenues From
Slide 34: QoQ Evolution
QoQ Evolution 120 EBITDA evolution 98.1 99.1 19.0% 100 17.2% 75.8 16.1% 17.0% 80 72.2 74.7 71.2 67.2 15.2% 63.5 62.4 14.1% 15.0% 60 13.5% 48.6 13.5% 14.4% EBITDA (RON m) 12.5% 12.2% EBITDA margin (%) 13.0% 40 20 10.3% 11.0% 0 9.0% Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q1 '24
Slide 35: Operational KPIs
Operational KPIs % Total 3m 2023 3m 2024 Business line Category % var. IFRS IFRS IFRS Sales Solid growth of 22% in Revenues, out of which Revenue 199,260,702 247,277,200 24% 38% Clinics Visits 863,694 1,064,126 23% 15% organic growth, with almost all business Average fee 230.7 232.4 1% lines continu
Slide 36: OPEX Evolution
OPEX Evolution % OPEX % Sales 3m 2023 3m 2024 3m ‘23 3m ‘24 3m ‘23 3m ‘24 % var. % var. % var. IFRS IFRS IFRS IFRS IFRS IFRS Consumable materials and repair materials 91,017,054 112,319,796 23.4% 18.0% 18.5% 0.5 p.p 17.2% 17.4% 0.2 p.p Commodities 56,109,225 57,659,250 2.8% 11.1% 9.5% (1.6)p.p 10.6%
Slide 37: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 December 2023 31 March 2024 % var. IFRS IFRS Non-current assets 2,102,828,820 2,132,627,060 1.4% Current assets, excluding Cash and cash equivalents 433,237,518 471,887,451 8.9% Cash and cash equivalents 100,271,093 142,577,229 42.2% TOTAL ASSETS 2,636
Slide 38: Debt Position
Debt Position 31 December 2023 31 March 2024 % var. IFRS IFRS Net debt to EBITDA ratio Leasing liabilities decreased from 4.6x to 4.3x, on Current portion - leasing 99,589,187 98,500,939 (1.1)% the back of increased EBITDA Long-term portion - leasing 309,158,946 315,710,074 2.1% levels and margins;
Slide 39: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow 31 March 2023 31 March 2024 % var. IFRS IFRS Net income before taxes 12,487,313 19,063,857 53% Adjustments for non-monetary items 61,808,895 80,668,958 31% Operating cash flow before working capital and other monetary changes 74,296,208 99,732,815 34% Cash used in
Slide 40: Financial Overview
Financial Overview • Sales Evolution • Business lines evolution: Sales and Traffic • EBITDA Evolution • Consolidated Statement of Profit and Loss • OPEX Evolution • Consolidated Statement of Financial Position • Debt Position • Consolidated Statement of Cash Flows • 2024 FY Consolidated Budget • Ann
Slide 41: Sales evolution
Sales evolution % Total Business line Category 2023 2022 % var. 2023 Sales Total Sales evolution YoY (RON mn) Revenue 831,236,066 616,685,378 34.8% 37.6% Clinics Visits 3,834,062 3,205,637 19.6% Average fee 216.8 192.4 12.7% Revenue 121,778,348 119,068,495 2.3% 5.5% Dentistry Visits 185,829 176,437
Slide 42: Business lines evolution: Sales and Traffic
Business lines evolution: Sales and Traffic Clinics Laboratories Dentistry Centers 900 3,834 4,500 8.5 186 300 9.0 140 176 200 800 4,000 7.4 154 3,206 8.0 120 180 700 3,500 250 6.3 7.0 160 600 3,000 100 5.0 140 2,280 200 6.0 500 2,500 89 120 1,815 80 5.0 400 831 2,000 150 100 258 4.0 60 119 122 617
Slide 43: EBITDA evolution
EBITDA evolution EBITDA evolution YoY (RON mn) Revenues & EBITDA (RON mn) 2,000 15.0% 1,500 13.7% 317 2,210 2,108 286 289 1,000 1,795 13.1% 247 212 500 247 289 317 0 2020 2021 2022 2023 2023 2022 2023 2023 Pro-forma Pro-forma Revenues EBITDA EBITDA margin EBITDA evolution QoQ 100.0 90.0 19.0% 80.0 1
Slide 44: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss 2022 2023 Pro-forma 2023 % var. % var. IFRS IFRS adjusted Pro-forma Gross sales 1,795,432,748 2,210,435,349 23.1% 32,323,239 2,242,758,588 24.9% Net sales (less NHP) 1,795,432,748 2,210,435,349 23.1% (102,685,673) 2,107,749,676 17.4% Other operating income 1
Slide 45: OPEX Evolution
OPEX Evolution % OPEX % Sales 2022 2023 2022 2023 2022 2023 % var. Change % var. IFRS IFRS IFRS IFRS IFRS IFRS Consumable materials and repair materials 311,233,127 389,887,326 25.3% 18.1% 18.3% 0.2 17.3% 17.6% 0.3 Commodities 209,975,320 208,134,799 (0.9)% 12.2% 9.8% (2.5) 11.7% 9.4% (2.3) Utilitie
Slide 46: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 December 2022 31 December 2023 % var. IFRS IFRS Non-current assets 1,686,590,024 2,102,828,820 24.7% Current assets, excluding Cash and cash equivalents 376,318,151 433,237,518 15.1% Cash and cash equivalents 89,068,154 100,271,093 12.6% TOTAL ASSETS 2
Slide 47: Debt Position
Debt Position 31 December 2022 31 December 2023 Leasing liabilities % var. IFRS IFRS Current portion - leasing 77,141,698 99,589,187 29.1% Long-term portion - leasing 225,175,340 309,158,946 37.3% TOTAL 302,317,038 408,748,133 35.2% 31 December 2022 31 December 2023 Financial debt % var. IFRS IFRS O
Slide 48: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow 31 December 2022 31 December 2023 IFRS IFRS Net income before taxes 49,557,301 4,299,484 Adjustments for non-monetary items 195,945,435 288,138,632 Operating cash flow before working capital and other monetary changes 245,502,736 292,438,116 Cash used in working c
Slide 49: 2024 FY Consolidated Budget
2024 FY Consolidated Budget Financial Year 2023 2024 Variance IFRS, audited Budget Revenue from contracts with customers 2,210,435,349 2,618,601,286 18.5% Other operating revenues 11,300,635 - - OPERATING INCOME 2,221,735,984 2,618,601,286 17.9% OPERATING EXPENSES 1,932,827,705 2,245,934,941 16.2% (
Slide 50: Substantiation of the 2024 FY Consolidated Budget
Substantiation of the 2024 FY Consolidated Budget The Group’s financial performance is affected, was affected in the past and is expected to be affected in the future by a number of factors, such as: • Global and regional economic conditions, respectively the economic context at national and regiona
Slide 51: Substantiation of the 2024 FY Consolidated Budget
Substantiation of the 2024 FY Consolidated Budget The Group estimates that: • it will continue to capitalize on the medical units of the acquired companies in order to organically develop their operations and to align the acquired companies to a profitability level (EBITDA margin) similar to that of
Slide 52: Annexes: Consolidated Statement of Financial Position
ASSETS 31 December 2023 31 December 2022 % var. Non-current Assets Annexes Goodwill 445,395,617 368,672,606 20.8% Intangible assets 118,906,011 100,192,265 18.7% Property, plant and equipment 1,101,015,115 828,501,060 32.9% Right-of-use asset 396,569,537 306,413,389 29.4% Other financial assets 40,9
Slide 53: Annexes: Consolidated Statement of Comprehensive Income
31 December 2023 31 December 2022 % var. Annexes Revenue from contracts with customers Other operating income 2,210,435,349 11,300,635 1,795,432,748 14,118,061 23.1% (20.0)% Operating Income 2,221,735,984 1,809,550,809 22.8% Consumable materials and repair materials (389,887,326) (311,233,127) 25.3%
Slide 54: Annexes: Consolidated Statement of Cash Flows
Annexes 31 December 2023 31 December 2022 Profit before tax 4,299,484 49,557,301 Adjustments for Depreciation, amortization and impairment of fixed assets 197,390,915 152,410,751 Provisions for liabilities and charges 838,338 625,545 Consolidated Interest revenue (3,423,077) (1,261,843) Statement of
Slide 55: Thank you!
MedLife Group 365, Calea Grivitei, Bucharest investors@medlife.ro Thank you!