Burjeel Holdings Plc · ADX:BURJEEL
Burjeel — Investor Presentation (September 2024)
47 slides from Burjeel's investor presentation, September 2024
Slide 1: Burjeel Holdings
September 2024 Burjeel Holdings Leading Super-Specialty Healthcare Provider in MENA
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Burjeel Holdings PLC None of the Company or its subsidiaries or any of their affiliates or based on publicly available information and non-public advisors make any representation or warranty as to the fairness, information to assist you in making a p
Slide 3: Contents
Contents 02 03 Investment Strategic Case Priorities 01 Burjeel Holdings at a Glance 04 Performance Update 06 05 Appendix Guidance
Slide 4: Burjeel Holdings at a Glance
01 Burjeel Holdings at a Glance Leading Super-Specialty Healthcare Provider in MENA
Slide 5: Leading Integrated Healthcare Network in the MENA
Leading Integrated Healthcare Network in the MENA Significant scale and market presence UAE, Oman & KSA 89 19% Geographical Medical assets Inpatient market presence incl. 19 hospitals1 share in the UAE2 1,730 6+ million 1,632 Bed capacity3 Total patients4 Doctors3 Diversified portfolio of brands > 3
Slide 6: High Quality, Large-scale Portfolio of Assets Across Geographies
High Quality, Large-scale Portfolio of Assets Across Geographies Segmental revenue contribution Geographic revenue contribution Polyclinic Hospital 1% Pharmacies Specialty Clinic 89% 88% Dubai & Physiotherapy 0.2% Other 8% Northern Emirates and wellness centers Hospitals Abu Dhabi & Al Ain 10% Medic
Slide 7: Business model
1 2 Business 1 Differentiating capabilities model • Level I & II Trauma Center • Centralised Lab Serving all • Level III Tertiary NICU • Nuclear Medicine socio-economic • Physio & Rehab Care • Department of Thalassemia groups • Intraoperative MRI • Advanced Center for Research • Da Vinci Xi robotic
Slide 8: Strategic Priorities
02 Strategic Priorities Leading Super-Specialty Healthcare Provider in MENA
Slide 9: Unique Vision with Multiple Growth Levers
Unique Vision with Multiple Growth Levers Ramp up of Increasing Operational Geographic growth assets patient yield excellence expansion Young asset fleet, Elevate the delivery Centralization Deliver on our KSA entry with growth to be driven of high-value complex care, and digitization and explore su
Slide 10: Investment Case
03 Investment Case Leading Super-Specialty Healthcare Provider in MENA
Slide 11: Investment Case Overview
World-class super- Expanding geographically specialty care through high-return and proposition enabling low-CAPEX opportunities patient yield growth Accelerating Established leader in large, growing and resilient digitization addressable market to drive operational and medical excellence Well-invest
Slide 12: Robust Talent Investments Powering Innovation & Research Capabilities
1 World-class super-specialty care Robust Talent Investments Powering Innovation & Research Capabilities Highly skilled and growing talent pool Rare disease +686 Burjeel launched the Center for Research on Rare Blood Doctors Disorders. The center is dedicated to addressing evidence gaps and overcomi
Slide 13: Super-Specialty Care Offering Driving Patient Yields
1 World-class super-specialty care Super-Specialty Care Offering Driving Patient Yields Recent medical milestones across key complex specialties Super-specialty care performance… …drives patient yield Liver transplants Liver transplants 10 Since inception in Apr’24 AED 700,000 – 1,000,000 Fetal surg
Slide 14: UAE Market Leader with a Prominent Position Across Segments
2 Established leader UAE Market Leader with a Prominent Position Across Segments Number of beds by key players1, as of December 2022 #1 inpatient platform in the UAE by private market volumes Beds excl. LTC in UAE 1,660 3 135 1,361 Beds in Oman 1,161 1,077 1,071 300 Focus on specialised and complex
Slide 15: Large, Growing and Resilient Addressable Market
2 Established leader Large, Growing and Resilient Addressable Market FY 2022 UAE & Oman & KSA market size1 $104bn Total healthcare expenditure (USD bn) 132 GCC market size2 112 $85bn UAE & Oman & KSA market size1 85 93 1.9x 19% Burjeel Holdings $27bn In-patient private market share in the 69 UAE & O
Slide 16: Unique Business Model Leveraging Multiple Touchpoints
3 Well-invested multi-brand network Unique Business Model Leveraging Multiple Touchpoints CAPEX spent from inception to H1'24 AED 4.5bn Well-invested and a full-scale hub-and-spoke model enables the Group to capture value across the entire patient pathway through multiple touchpoints – driving reven
Slide 17: Leading Brand Portfolio Serving Entire Socioeconomic Spectrum
3 Well-invested multi-brand network Leading Brand Portfolio Serving Entire Socioeconomic Spectrum Diverse brand portfolio and network Brands creates favourable negotiating position with insurance payers 8 Hospitals2 Insurance payers are the largest revenue 4 Hospitals 2 Hospitals Assets1 8 Medical c
Slide 18: High-Growth Asset Mix with Significant Utilization Runway
4 High-growth asset mix High-Growth Asset Mix with Significant Utilization Runway Asset maturity split for hospitals1 Burjeel Medical City – significant opportunity to ramp up utilization with superior patient yields 25% Matured FY 2023 Mature Burjeel Hospital, Abu Dhabi High-Growth Burjeel Medical
Slide 19: Multi-Pronged Expansion Strategy to Unlock Solid Growth Potential
5 Expanding geographically Multi-Pronged Expansion Strategy to Unlock Solid Growth Potential Key region of focus – KSA Expansion strategy pillars KSA to drive our geographic expansion 1 Expanding UAE Healthcare infrastructure Zero-capex expansion into Africa, through O&M contracts Entering high pote
Slide 20: Expanding Our UAE Healthcare Infrastructure
5 Expanding geographically Expanding Our UAE Healthcare Infrastructure Launch of 1 hospital, In 2024-2025, the planned launch of one hospital, two day surgery centers and one medical 2 day surgery centers center will enable the Group to tap into new markets, attract more patients and release hospita
Slide 21: PhysioTherabia – Entering High Potential KSA Market
5 Expanding geographically PhysioTherabia – Entering High Potential KSA Market Highly attractive entry proposition Launched first premier physiotherapy centers 60 + Physical therapy, rehabilitation and wellness centers in 12 KSA cities in a joint venture (50:50) with Leejam Company 22 centers launch
Slide 22: Specialized Day Surgery Centers – Disruptive Innovation in Saudi Healthcare Market
5 Expanding geographically Specialized Day Surgery Centers – Disruptive Innovation in Saudi Healthcare Market Strong rationale for expansion in KSA Compelling opportunity to build • Promising macro and demographic trends innovative healthcare proposition in KSA o GDP growth of c.5.5% p.a. o Riyadh's
Slide 23: Expansion through Asset-Light O&M Contracts
5 Expanding geographically Expansion through Asset-Light O&M Contracts O&M opportunities in the UAE and MENA On-going O&M projects Approach Al Dhannah • Located in the fast-growing industrial hub of Al Ruwais 200,000+ Hospital, within the Western region of the UAE Region Population • Partner with th
Slide 24: Leveraging Digital Transformation to Enhance Patient Experience
6 Accelerating digitization Leveraging Digital Transformation to Enhance Patient Experience and Maximise Operational Efficiency Strategic digital initiatives Key digital achievements Patient digital channel • Mid-term key investment areas in Digital Health Mobile application • Oracle Health informat
Slide 25: Cash-Generative Business Model Enabling Consistent Shareholder Return
7 Cash-generative business model Cash-Generative Business Model Enabling Consistent Shareholder Return Financial performance underpinned Robust margin expansion drivers by operational excellence Healthy payer-mix with proportion Significant capacity to ramp-up of Thiqa patients increasing high growt
Slide 26: Strong Leadership with Well-Established Public Market-Oriented Corporate Governance
8 Seasoned leadership team & ESG improvements Strong Leadership with Well-Established Public Market-Oriented Corporate Governance Highly experienced leadership with focus on growing shareholder value Strong governance framework BoD of 7 Members Committees: A B N B A N B A N 70% Independent Directors
Slide 27: Strategic Pillars – ESG Framework
8 Seasoned leadership team & ESG improvements Strategic Pillars – ESG Framework System Community Governance Environment Diversity Equity & Inclusion Community Engagement Corporate Governance GHG Emissions & Carbon Neutrality 1 Increase the representation of women in 1 To touch >7 million lives per y
Slide 28: FY 2023 ESG Highlights
8 Seasoned leadership team & ESG improvements FY 2023 ESG Highlights System Community Governance Environment 92% 87% 70% 7.4 kg CO e 2 Employee Inpatient Independent Direct GHG emission satisfaction score satisfaction score Directors patient intensity (-10%) 24% 73% Zero 90,949 MWh Women Outpatient
Slide 29: Sustainability Management System
8 Seasoned leadership team & ESG improvements Sustainability Management System ESG Governance on Board Level ESG Governance on Executive Level Board level Board of Directors Executive ESG Committee Chief Executive Officer Committee level NRC Committee Audit Committee Chief Finance Chief Operating Ch
Slide 30: Performance Update
04 Performance Update Leading Super-Specialty Healthcare Provider in MENA
Slide 31: H1’24 Highlights
H1’24 Highlights Financial highlights Recent business developments Leading Health Tech Evolution Revenue AED 2,387m Launched IMed Technologies to create innovative AI-based solutions and foster collaboration with global healthcare 10.4% YoY stakeholders, further improving patient experience, provide
Slide 32: Accelerated Patient Footfall Growth On the Back of Continued Market Penetration
Accelerated Patient Footfall Growth On the Back of Continued Market Penetration Group inpatient footfall, k Group outpatient footfall, k % bed occupancy % OP utilisation 60% 65% 60% 64% 72% 69% 72% 69% • The Group achieved strong inpatient footfall • Outpatient footfall growth in Q2’24 growth in Q2‘
Slide 33: Sustainable Revenue Growth Across Segments Along with Investments in Future Patient Growth
Sustainable Revenue Growth Across Segments Along with Investments in Future Patient Growth Group Revenue, AED m Group EBITDA (ex-one-offs1), AED m YoY EBITDA margin YoY • The Group delivered sustainable top-line (ex-one-offs) • Group-level EBITDA ex-one-offs declined 1,182 +9.7% growth in Q2’24, dri
Slide 34: Well-Invested Burjeel Medical City Sets to Drive High-Yield Patient Growth & Margin Expansion
Well-Invested Burjeel Medical City Sets to Drive High-Yield Patient Growth & Margin Expansion Total patients, k Revenue, AED m1 EBITDA, AED m1 % bed occupancy % EBITDA margin 46% 59% 44% 57% 13.2% 16.6% 13.8% 16.2% +20.8% +26.5% 574 +41.2% 246 475 93 194 +19.7% +50.5% 66 +29.6% 291 123 243 48 95 32
Slide 35: Ongoing Investments in Oncology & Super-Specialty Expansion to Unlock Significant Growth Potential
Ongoing Investments in Oncology & Super-Specialty Expansion to Unlock Significant Growth Potential Group OPEX breakdown,1 as % of revenue Group EBITDA analysis, AED m % EBITDA margin 79.9% 81.9% 79.0% 80.3% 21.6% 20.0% 17.9% 8.2% 9.8% 9.2% YoY 9.4% 1.6% 2.0% 1.9% YoY 1.6% +225 (88) +2.2% (8.7%) 24.6
Slide 36: Free Cash Flow & Net Profit Performance
Free Cash Flow & Net Profit Performance Free cash flow,1 AED m Net profit analysis, AED m % FCF conversion2 % Net profit margin 64% 42% 51% 50% 54% 10.4% 10.0% 7.1% 523 +225 (208) 497 YoY +5.9% 366 YoY (24.8%) 225 (6) +3 238 (41) 258 235 (10) (18) 169 2021 2022 2023 H1’23 H1’24 Q1 '23 H1’23 Revenue
Slide 37: Maintaining a Robust Balance Sheet
Maintaining a Robust Balance Sheet AED m FY 2022 FY 2023 H1 2024 Debt maturity as of 30 June 2024 Bank balances and cash 150 170 165 Interest-bearing loans and borrowings 1,261 1,164 1,168 252 227 Bank overdrafts – – – Bank debt1 1,261 1,164 1,168 159 152 131 140 Net debt 1,111 994 1,003 107 Lease l
Slide 38: Guidance
05 Guidance Leading Super-Specialty Healthcare Provider in MENA
Slide 39: H2’24 Business Initiatives
H2’24 Business Initiatives Key management focus Planned business initiatives • Open 3 Burjeel medical facilities in Abu Dhabi: medical center with urgent care in Gayathi, primary care & mental health center in Al Falah and primary Ongoing Expansion in UAE & KSA care center in Saadiyat • Expand Physi
Slide 40: Guidance Reiterated
Guidance Reiterated FY 2024 Mid-term (2025-2027) • UAE Medical center: +1 & Day Surgery centers: +2 • UAE Hospital: +1 Expansion • UAE additional beds: +32 • KSA Specialized Day Surgery centers: +2 • KSA PhysioTherabia centers: +26 • KSA PhysioTherabia centers: +30 • Group revenue growth to normaliz
Slide 41: Appendix
06 Appendix Leading Super-Specialty Healthcare Provider in MENA
Slide 42: Track-record of Consistent Growth
Track-record of Consistent Growth 2007-2010 2015 2017 2019 2021 2023 First Hospital opened Medeor Brand New unique facility focused on minimal Launched New Clinical Research Launched The Paley Middle East in 2007 under LLH Launch invasive surgeries and alternative Burjeel Hospital capabilities and B
Slide 43: GCC Healthcare Market Growth Drivers
GCC Healthcare Market Growth Drivers Under-penetration of healthcare expenditure 1 Strong economic growth 2 3 Favorable demographic trends vs developed countries CAGR ‘22-31E of GDP1 Healthcare expenditure as % of GDP1 +1.9% +31.9% +4% +3% +3% 4-5% 12% 19% CAGR ‘22-27E CAGR ‘22-27E of GCC UAE Oman K
Slide 44: Main Trends in Organ Transplant and Oncology Specialties in the UAE
Main Trends in Organ Transplant and Oncology Specialties in the UAE Organ transplant Oncology Total number of organ transplants performed in the UAE Total number of malignant cancer cases in UAE (k) CAGR 17-22 CAGR 2011-2022 5.0 Living 213 4.6 4.7 4.8 4.9 Deceased 184 16% 7.3% 4.0 4.1 71 3.6 3.6 3.7
Slide 45: Healthcare is a Key Focus for GCC Governments
Healthcare is a Key Focus for GCC Governments UAE initiatives Oman Health Vision 2050 KSA Vision 2030 UAE Vision 2021 To achieve sustainable funding for Some of the key initiatives health research by ensuring national in the healthcare spectrum: Providing world-class healthcare and international col
Slide 46: Group & Segment Summary
Group & Segment Summary Group financial summary Segmental financial summary2 AED millions H1'24 H1'23 AED millions 1H '24 FY22 1H '23 FY21 Revenue 2,387 2,162 Revenue 2,387 2,162 Inventories consumed (605) (517) Hospitals3 2,095 1,917 Doctors' and other employees' salaries (1,045) (953) Medical Cent
Slide 47: Investor Relations
Investor Relations September 2024 Sergei Levitskii Director of Investor Relations sergei.levitskii@burjeelholdings.com T: +971 2 3041 111 ir@burjeelholdings.com F: +971 2 2222 363 M: +971 503802383 PO Box: 7400, Abu Dhabi, UAE Investor Calendar Company Website
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