Middle East Healthcare Company · TADAWUL:4009

Middle East Healthcare — Q3 2020 Earnings Presentation

27 slides from Middle East Healthcare's earnings presentation, 2020

  1. Slide 1: Investor Presentation 3Q2020

    Investor Presentation- 3Q2020

  2. Slide 2: Disclaimer

    Disclaimer  This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relati

  3. Slide 3: Table of Contents

    TABLE OF CONTENTS MEAHCO At a glance 1 Turnaround Revolution 2 Key Financial Indicators 3 Ambitious Expansion Strategy 4 Shareholders Information 5 Employees Statistics 6 Financials Snapshot 3 7

  4. Slide 4: MEAHCO At A Glance

    MEAHCO At A Glance 4

  5. Slide 5: MEAHCO At A Glance

    MEAHCO AT A GLANCE  Saudi Arabia’s most geographically diversified healthcare player.  Full fledged footprint in six cities (Jeddah, Asser, Riyadh, Madinah, Hail, Dammam).  Comprehensive network covering ~90% of Saudi Arabia’s population.  Ongoing expansion into Makkah, along with Madinah, to ca

  6. Slide 6: Geographic Footprint

    Geographic Footprint Asser Madinah Beverly Clinics Establishment 2000 Establishment 2003 Establishment 2018 400 Licensed Beds 300 Licensed Beds 20 Clinics 291 Operational Beds 197 Operational Beds 89 Clinics 58 Clinics 06 01 01 02 03 04 05 06 07 Jeddah Riyadh Hail Dammam Establishment 1988 Establish

  7. Slide 7: Hospitals under management contract

    Hospitals under management contract ➢SGH Yemen – est. 2006 ➢SGH Dubai – est. 2012 ➢SGH Cairo – est. 2015 ➢SGH Sharjah – est. 2018 ➢SGH Ajman – est. 2019 Operational Pipeline ➢SGH Alex West (Egypt) ➢SGH Giza (Egypt) ➢SGH Lahore (Pakistan) ➢SGH Islamabad (Pakistan) ➢SGH Karachi (Pakistan) ➢BTPL Lahore

  8. Slide 8: Turnaround Revolution

    Turnaround Revolution 8

  9. Slide 9: Turnaround Revolution

    Turnaround Revolution Integration Digital Transformatio Diversification n Accreditation Restructure Technology Patients Cost Satisfaction 9 Efficiency

  10. Slide 10: Accreditation

    Accreditation Jeddah Asser Riyadh Madinah Hail Dammam Accredited Accredited Accredited Accredited In process In process Accredited Accredited Accredited Accredited Accredited In process In process In process In process In process In process In process Accredited In process In process Accredited Accr

  11. Slide 11: Key Financial Indicators

    Key Financial Indicators 11

  12. Slide 12: Key Financial Indicators

    Key Financial Indicators Revenue, Revenue growth EBITDA, EBITDA margin Net profit, Net profit margin 600 EBITDA EBITDA margin Net profit Net profit margin 492 500 15.7% 36 10% 100 20% 8.6% 387 16.1% 400 35 SAR million 80 8% 15% SAR million 35 SAR million 7.1% 300 60 6% 34 10% 200 40 34 4% 5% 33 100

  13. Slide 13: Operational KPIs

    Operational KPIs Number of performed surgeries Utilization rate Average length of stay 12,000 100.00% 5 4.28 4.08 4 10,000 80.00% 69.79% 70.03% 4 8,000 3 60.00% 3 6,000 Bed utilisation 2 40.00% 4,000 2 10,277 1 7,936 2,000 20.00% 1 0 0.00% 0 3Q19 3Q20 9M19 9M20 3Q19 3Q20 25,000 100% 5 4.25 4.09 4 24

  14. Slide 14: Revenue structure

    Revenue structure Revenue breakdown by service Revenue breakdown by clientele GPM breakdown by service 3Q19 3Q20 Insurance Ministry of Health Cash Others 3Q19 3Q20 350 301.7 100% 3% 2% 40% 35.9% 35.0% 33.0% 31.7% 300 19% 21% 35% 80% 30% SAR million 250 200 60% 29% 34% 25% 150 111.20 20% 100 76.4 40%

  15. Slide 15: Patients Evolution

    Patients Evolution Historical trends 3Q19 vs. 3Q20 9M19 vs. 9M20 Number of inpatients Number of inpatients Number of inpatients 60,000 25,000 21,681 60,000 51,763 50,000 20,000 50,000 40,737 40,000 14,923 40,000 15,000 30,000 30,000 10,000 20,000 20,000 10,000 5,000 10,000 0 0 0 2015 2016 2017 2018

  16. Slide 16: Balance sheet and cash cycle

    Balance sheet and cash cycle Cash conversion cycle Receivables, Receivables split Leverage 9M20 1,600 1,471 Net debt/Equity (x) 1,400 400 336 339 1.0 350 1,200 Days on Hand (DoH) 0.80 300 SAR million 250 1,000 0.8 200 0.61 150 107 110 800 0.6 100 50 600 0.4 0 400 0.2 200 0 0.0 9M20 FY19 9M20 9M19 Mi

  17. Slide 17: Ambitious Expansion Strategy

    Ambitious Expansion Strategy 17

  18. Slide 18: Expansion and CAPEX

    Expansion and CAPEX Jeddah Maternity & Child Riyadh Outpatient Tower Makkah Housing Hospital 134 beds,160 clinics Capex 114 million Capex 194 million To be operational 35 beds,16 clinics. To be operational 4Q 2021 Rent SAR 7 m in 2 years 2Q 2021 2Q 2021 Makkah Hospital Dammam Housing 300 beds Capex

  19. Slide 19: Shareholders Information

    Shareholders Information 19

  20. Slide 20: Shareholders Information

    Shareholders Information Sharholder Structure SGH versus TASI Performance 17.2% 19.0% 7.1% 7.8% 13.0% 54.7% Foreign Retail Local Institutions Foreign Institutions Bait Al-Batterjee IFC Local Retail 20

  21. Slide 21: Employees statistics

    Employees statistics Headcount split by profession Number of employees Saudization rate Doctors Nurses Allied Health Admin Staff 6,000 5,618 Saudi Non-Saudi 5,339 15% 5,000 4,000 34% 44% 3,000 2,000 29% 1,000 66% 9M20 0 9M20 12% 9M19 9M20 21

  22. Slide 22: Board of Directors

    Board of Directors Non-Executive Board Members Group Chairman SeniorIndependent Executives Board BoardMembers Members Mr. Makarem Batterjee Mr. Khaled Batterjee Mr. Amr Khashoggi Mr. Mohamed Moumena Board Member Board Member Board Member Board Member Mr. Sobhi Batterjee Chairman Mr. Sultan Batterjee

  23. Slide 23: Financials Snapshot

    Financials Snapshot 23

  24. Slide 24: Income Statement Snapshot

    Income Statement Snapshot All figures in SAR ،000 30-Sep-20 30-Sep-19 Revenue 492,132 386,756 Cost of revenue -320,226 -266,796 Gross Profit 171,906 119,960 Selling and Marketing expenses -10,108 -4,096 General and Admin. expenses -119,679 -82,554 Operating Profit 43,291 37,204 other income 1,173 3,

  25. Slide 25: Balance Sheet Snapshot

    Balance Sheet Snapshot All figures in SAR ،000 30-Sep-20 31-Dec-19 Total Non Current Assets 2,029,185 1,944,838 Inventories 142,913 124,514 Accounts Receivable 1,471,133 1,108,576 Total Current Assets 1,715,048 1,360,659 Total Assets 3,744,233 3,305,497 Total Non Current Liabilities 966,695 923,080

  26. Slide 26: Investor Relations contacts

    Stock Data: Bloomberg / Reuters: MEH AB / 4009.SE Outstanding shares: 92,040,000 Free float: 38.2% Mkt. Cap: USD 895 million 3M ADVT: USD 7.1 million Investor Relations contacts: Tamer Nigm Madani Hozaien Director-Strategic Planning & IR Group CFO M: +966 55 269 5722 E:IRdirector.meahco@sghgroup.net

  27. Slide 27: Thank you

    Thank you -- Wey ©

Middle East Healthcare Company (Saudi German Hospitals Group) — Q3 2020 Earnings Presentation on 6ix