Medicover Ab Class B · OMXSTO:MCOV_B
Medicover Ab Class B — Q3 2024 Earnings Presentation
20 slides from Medicover Ab Class B's earnings presentation, Oct 30, 2024
Slide 1: Q3 results presentation
Web cast presentation Q3 results presentation Fredrik Rågmark, CEO & Joe Ryan, CFO 30 October 2024
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
Slide 3: Business overview
a > a MEDICOVER Business overview
Slide 4: Strong organic growth with continued strong cash flow generation
Strong organic growth with continued strong cash flow generation, demonstrates the impact of our operational leverage Organic revenue growth of 17.4%, with strong organic volume growth in both reporting segments. The Q3 2024 LTM figure for net operating cash flow of €240.2m is up 18% vs Q3 2023
Slide 5: Strong organic growth with continued strong cash flow generation
Strong organic growth with continued strong cash flow generation Commentary Revenue split per country / payer2 Consolidated revenue Revenue increased by 19.8% to +6% +14% 600 €527.8m (€440.5m), with +10% 4% 6% organic growth of 17.4%. 10% +25% 527.8 3.8 +17.4%3 500 50% 13% +19.5%3 440.5 +25% Acq
Slide 6: Underlying profitability improved, with items affecting comparability impacting reported profitability
Underlying profitability improved, with items affecting comparability impacting reported profitability EBITDA increased by 14.1% to €73.9m (€64.8m), a margin of 80 25% 14.0% (14.7%). □ Adj. for prior year period exceptional credit of €4.0m* EBITDA margin increased 0.2pp from 13.8% to 14.0%. 20%
Slide 7: Healthcare Services – continued to show strong organic growth and profitability improvement
Healthcare Services – continued to show strong organic growth and profitability improvement Sales by country2 Revenue grew by 21.7% to €370.9m 400 (€304.7m), with an organic growth of 18.3%, +15% price representing ~9.0pp of the growth. 350 +28% 8% 11% 300 Acquired revenue was €1.2m. 15% 66% +25
Slide 8: Healthcare Services – improved profitability driven by Polish business and maturing hospitals
Healthcare Services – improved profitability driven by Polish business and improved performance in maturing hospitals EBITDA grew by 23.4% to €57.5m (€46.6m), a 70 25% margin of 15.5% (15.3%). 60 EBITDAaL was €36.1m (€27.8m), a margin of 20% 9.8% (9.1%). 50 15% 2 hospital openings in India in
Slide 9: India hospital network – continued focus to mature facilities
India hospital network – continued focus to mature facilities, 2 hospitals opened in the quarter Share of Maturity <18 revenue (LTM) months 1% 2 23% hospitals Maturity 76% <36 months Share of 5 beds hospitals 4% Maturity 27% >36 months 69% 16 hospitals 9
Slide 10: Diagnostic Services – performing well, driven by volume growth in Germany and FFS
Diagnostic Services – is performing well, driven by volume growth in both Germany and FFS Sales by country2 Revenue grew by 15.5% to €162.8m (€140.9m), with an 200 +16% organic growth of 15.3%, with price representing ~4.0pp. 10% +8% +14% 11% Acquired revenue was €2.6m. 150 47% 14% +22% Growth
Slide 11: Diagnostic Services – volume growth in Germany and FFS, strong margins
Diagnostic Services – volume growth in Germany and FFS, reflected in the strong margins EBITDA grew by 28.4% to €26.9m (€20.9m), a 60 35% margin of 16.5% (14.8%). 30% 50 EBITDAaL was €19.5m (€14.6m), a margin of 40 25% 12.0% (10.3%). 20% 30 Strong privately paid demand in all markets, 15% incl
Slide 12: Financial overview
a > a MEDICOVER Financial overview
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 16% to €48.5m (€41.9m), a margin of 9.2% (9.5%). Adj for €4m PY exceptional credit growth was 28% and margin expansion 0.6pp HS – €36.1m (€28.5m),
Slide 14: Financials
Financials Leverage1 levels decrease, 3.1x (3.3x YE23), this is despite €52m of cash outflows & debt recognition for acquisitions of non controlling interests in the 9 months Inorganic acquisitions at €18.1m (€16.4m) for nine months. Net debt increased by €62.8m for nine months. Net working
Slide 15: Financials
Financials Capex at €28.4m (€20.0m), 5.4% (4.5%) of revenue 899k m² medical space +49k m² LTM Capex, €m 100 100 Maintenance Growth Healthcare Diagnostic Free recurring cash flow Organic growth investment FR C/F % of revenue 90 100 7,0% % of revenue 5.3% 80 80 90 5.8% 6,0% 5.8% 70 80 5.1% 33% 32%
Slide 16: Financial targets 2023-2025
Financial targets 2023-2025 Organic revenue, €m Adjusted EBITDA (organic), €m Leverage 3.1x Q3 2024 ≤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 Q3 2025 target 2022 base 2023 Run rate Q3 2025 target 2024 2024
Slide 17: Key takeaways
Key takeaways Organic revenue growth of 17.4%, with strong organic volume growth in both reporting segments. The Q3 2024 LTM figure for net operating cash flow of €240.2m is up 18% vs Q3 2023 and it is the highest quarterly LTM figure reported since the IPO, even considering the exceptional Covi
Slide 18: Appendix: Items affecting comparability impacting profit measures
Appendix: Items affecting comparability impacting profit measures €m Q3 24 Q3 23 Variance €m Q3 24 Q3 23 Variance EBITDA Group 73,9 64,8 14% EBITA 27,6 24,7 12% EBITDA Group margin 14,0% 14,7% -0,7pp EBITA Group margin 5,2% 5,6% -0,4pp Reversal derecognition of contingent liabilities 0 -4,0 Reversal
Slide 19: Thank you!
me > a MEDICOVER Thank you! CARING FOR YOUR HEALTH IS ALL WE DO
Slide 20: Financial calendar
Financial calendar Report Date Webcast Q4-report 12 February 2025, 07.45 CET 09.30 CET Annual report Week 13, 2025 Q1-report 29 April 2025, 07.45 CEST 09.30 CEST Annual general meeting 29 April 2025 Q2-report 24 July 2025, 07.45 CEST 09.30 CEST Q3-report 5 November 2025, 07.45 CET 09.30 CET 20