Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — Cleopatra Hospitals Group — FY2021 Earnings Presentation
52 slides from Cleopatra Hospital's earnings presentation, 2022
Slide 1: Cleopatra Hospitals Group Investor Presentation FY2021
Cleopatra Hospitals Group Investor Presentation FY2021
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 relating
Slide 3: Contents
CONTENTS 1 Macro Environment & CHG Investment Story 2 Performance Review 3 Business Updates 4 Governance & Shareholder Information 5 Appendix
Slide 4: Our Mission & Values
Our Mission & Values — We put our patients first by providing high quality healthcare services with a focus on patient safety and quality of outcomes while enhancing the quality of life of our patients — We focus on creating sustainable growth with positive measurable impact on our stakeholders and
Slide 5: A Unique Investment Story
A Unique Investment Story • Leading integrated healthcare • Group-wide tenders in provider in Egypt with track pharmaceuticals and medical record of acquiring and consumables that drive scale cost integrating leading operating efficiencies and improve margins hospital assets • Scale volume benefits
Slide 6: A Diversified Healthcare Services Group
A Diversified Healthcare Services Group • Cleopatra Hospitals Group is Egypt’s first and largest private hospital group by number of hospital beds and operating hospitals and consists of six operational Other hospitals and two polyclinics in addition to a leading IVF Centre all in Cairo. The Outpati
Slide 7: CHG's Journey History & Timeline
CHG’s Journey History & Timeline The Evolution of CHG from a Single Asset into one of the Largest Hospital Platform in the Region The first asset and the CHG acquired Nile Badrawi CHG signed a definitive CHG acquired and began CHG enters into a JV Group’s Flagship Hospital in October 2015 agreement
Slide 8: Broad Network Coverage in Greater Cairo
Broad Network Coverage in Greater Cairo Leveraging a growing footprint, CHG continues to penetrate new segments of the population and provide high quality care to currently underserved areas of Greater Cairo Cleopatra Hospitals Group, is the largest private 9 hospital group in Egypt by number of bed
Slide 9: Diversified Service Offering and Revenue Stream
Diversified Service Offering and Revenue Stream CHG reports strong revenue growth in 2021 supported by growing volumes New Revenue Stream and improving utilization rates across all its facilities as of Q4 2020 72% 3% 18% 4% 3% OUTPATIENT IVF HOSPITALS* POLYCLINICS DIAGNOSTICS PHARMACY CHG operates s
Slide 10: Clearly Defined Core Growth Strategy
Clearly Defined Core Growth Strategy Integrating the platform to Leveraging payor and achieve higher efficiencies supplier relationships Geographic expansion in Egypt Enhancing utilization and linked to following optimizing existing capacity Establish centers of while expanding capacities and the ma
Slide 11: Healthcare Provider of Choice
Healthcare Provider of Choice Creating a one-stop-shop that is seamlessly integrated across all our assets comes as a result of the Group’s persistence in keeping our patients at the center of everything we do, while at the same time ensuring to drive value to all CHG’s key stakeholders. With that f
Slide 12: CHG 2021 Financial Highlights
CHG 2021 Financial Highlights CHG reported consolidate revenue for the year of EGP 2,549.3 million, representing a robust 28% year-on-year expansion. Growth was supported by both the Group’s conventional service offering, EGP 2,549.3 mn EGP 930.7 mn Consolidated revenues in 2021 Gross profit margin
Slide 13: 2021 in Review
2021 in Review Cleopatra Investor Presentation FY 2021 13
Slide 14: Financial Performance in 2021
Financial Performance in 2021 The Group completed a transformative 2021 delivering revenue and net profit growth of 28% and 38%, respectively, supported by a record fourth quarter; Cases served surpassed the 1 million mark, recording their highest ever figure; Margin at all levels of profitability s
Slide 15: Key Revenue Drivers (i)
Key Revenue Drivers (i) Total cases served surpassed 1 million mark recording the highest ever number of cases served during the year, growing 15% year-on-year. On a quarterly basis, the Group also attended to the highest number of patients in a single quarter since Q4 2019, growing 4% versus Q4 202
Slide 16: Key Revenue Drivers (ii)
Key Revenue Drivers (ii) Cases Served* expanded 15% year-on-year in 2021, with the Group recording its highest ever number of cases served during the year. On a quarterly basis, cases served were up 4% versus the comparable quarter of 2020. Despite a slight dip in performance due to seasonality coup
Slide 17: Patient Volumes Recovery
Patient Volumes Recovery The Group’s East and West Cairo polyclinics continued to perform well, delivering impressive top-line growth for the year with consistent improvements in profitability as the year progressed. During the final quarter of the year, the Group’s polyclinics recorded revenue of E
Slide 18: Group Revenue Contribution in 2021 (i)
Group Revenue Contribution in 2021 (i) The Group managed to deliver top line growth of 28% versus 2020, supported by growth in our non-covid as well as our covid business. On a quarterly basis as well, we managed to deliver a record quarter with a top line of 649 million. The Group served over 1 mil
Slide 19: Group Revenue Contribution in 2021 (ii)
Group Revenue Contribution in 2021 (ii) Covid vs. Non Covid Revenue Streams* COVID Patients in Q1 20’: Zero COVID Patients in Q2 20’: 438 COVID Patients in Q3 20’: 479 COVID Patients in Q4 20’: 544 COVID Patients in 2020: 1,461 +18% -24% -22% +28% COVID Patients in Q1 21’: 565 COVID Patients in Q2 2
Slide 20: Financial Performance by Hospital (i)
Financial Performance by Hospital (i) Cleopatra Hospital (CHC) Cairo Specialized Hospital (CSH) EGP 1,989 EGP 1,939 EGP 2,441 EGP 5,138 EGP 1,299 EGP 1,529 EGP 3,721 EGP 4,197 EGP 4,112 EGP 2,708 935 764 748 459 677 44% 43% 374 365 493 41% 42% 28% 33% 38% 287 34% 31% 412 244 30% 318 323 69 281 150 1
Slide 21: Financial Performance by Hospital (ii)
Financial Performance by Hospital (ii) Al- Katib Hospital (KHC) Queens Hospital (QHC) EGP 1,398 EGP 3,288 EGP 1,238 EGP 1,200 110 124 164 87 17 46 60 23 5 33 2019 2020 2021 2020 2021 ARP / Bed in 000’ Revenue Gross Profit ARP / Bed in 000’ Revenue Gross Profit East & West Polyclinics* 2019 2020 2021
Slide 22: Group Revenue Analysis
Group Revenue Analysis Group Revenue Trend Closed 2020 with 11% growth Y-o-Y. Growth was maintained The Group closed 2018 with in Q1 2021 as patient volumes solid growth in revenue on a continued to recover, full year basis of 29% Y-o-Y, as recording 26% growth Y-o-Y well as on a quarterly basis of
Slide 23: Capex Profile
Capex Profile Capex Investments Organic Capex Expansion Capex Acquistions Acquisition Investments: • El Katib (143mn Propco & 135mn Opco) Acquisitions • Queens (25mn Opco) • IVF (2020) EGP 115mn 115 160 Medical & Renovation Capex: • Investments need to refurbish/enhance Expansion recently added faci
Slide 24: 2021 in Review
2021 in Review Cleopatra Investor Presentation FY 2021 24
Slide 25: Transformational Year
Transformational Year M&A AND EXPANSIONS CORPORATE STRATEGY - Alex NMC MTO - 2022 – 2025 Strategy Update - 400 Bed Brownfield Project - Centers of Excellence Development - 200 Bed Brownfield Project - Digital Transformation - Renovations & Upgrades - Group Strategic Alignment - Covid/Non-Covid Conti
Slide 26: Transformational Approach
Transformational Approach Patient Operational Business Model Experience Efficiency Enhancements Systems Organic Volumes Digital Transformation & Processes & COEs Human Resources Further developing Focusing efforts on further establishing the Transformational personnel Leveraging technology & data co
Slide 27: M&A and Expansions Progress
M&A and Expansions Progress M&A & Expansions Projects 2021 2022 2023 2024 200 Bed Brownfield Management agreement terms and Completion of hospital’s remaining Hospital’s first year of operations (25 Project conditions were signed and works years management contract) announced Queens Hospital Hospita
Slide 28: Expanding CHG's Presence to New Cairo
Expanding CHG’s Presence to New Cairo 6th October location 2021 New Hospital Project Under Construction Location New Cairo # of Beds ~200 Project Completion 2024 Cleopatra Investor Presentation FY 2021 28
Slide 29: Market & Competition Analysis
Market & Competition Analysis Investment & Strategy Expand geographical presence in new underserved areas Patient Focused Marketing and product development Volume driven strategy aiming to attract both patients and cities (New Cairo , October) through Hospitals, with emphasis on patient experience,
Slide 30: The Group's Centers of Excellence
The Group’s Centers of Excellence Defining Centers of Excellence Select Examples of CHG’s Centers of Excellence Competitive Defined Scope & Sales Nursing & Residents Advantage & Focus Team Differentiation Consumables Medical Equipment & Payor Recognition Planning Technology Medical & Branding & Mark
Slide 31: Expanding CHG's Digitalization Agenda
Expanding CHG’s Digitalization Agenda The Group recognizes digitalisation as a key driver for future growth. Over the last few years, CHG has embarked on a digital transformation strategy, which aims to introduce the latest digital solutions available to enhance all aspects of the Group’s day-to-day
Slide 32: Leveraging on Clinysis' Successful Roll-Out
Leveraging on Clinysis’ Successful Roll-Out Patients’ Engagement Platforms Website Social Media CHG Mobile App CHG Video Call App Appointment booking is also available Allows patients to book appointments on CHG’s mobile app across all of its online at all CHG hospitals and clinics. facilities. Cent
Slide 33: Governance & Shareholder Information
Governance & Shareholder Information Cleopatra Investor Presentation FY 2021 33
Slide 34: Governance (I)
Governance (I) The Group’s Board of Directors provides the necessary oversight and combination of expertise to thoroughly oversee the Group’s corporate governance framework, a cornerstone of the Group’s long-term success and value creation. Executive Board Non-Executive Board Members Independent Boa
Slide 35: Governance (II)
Governance (II) OPERATIONS ABC No Referral Fees Medical Council • CHG has a zero-tolerance approach to bribery and • CHG does not pay any referral fees or kickbacks to • CHG recently launched a group-wide medical council corruption with a clear anti-bribery and anti-corruption physicians and instead
Slide 36: CLHO Trading Analysis
CLHO Trading Analysis CHG’s Trading Analysis CHG’s Price Performance Since IPO (Rebased to 100) Valuation Multiples 212% % Change in Performance 43% 14.1x 10.8x (IPO - Date) 8.6x EV/EBITDA CHG EGX30 Valuation CLHO Volume CHG EGX30 Multiples (x) 600 FY 2019 FY 2020 FY 2021 500 400 33.9x 29.8x 300 200
Slide 37: Buyback Program Update
Buyback Program Update CLHO VWAP & Volumes Traded – Jan. 2021 to Date Share Buyback Share Buyback Share Buyback 5.6 Program –Round One Program –Round One Program –Round Two 35000000 Commencement During Buyback Ending Commencement Program 5.4 5.40 % of CLHO bought back 2.35% 30000000 5.2 Total Treasu
Slide 38: Appendix
Appendix Cleopatra Investor Presentation FY 2021 38
Slide 39: COVID-19 Response Protocols (I/IV)
COVID-19 Response Protocols (I/IV) CHG response protocol was developed to ensure the health and safety of its patients and staff while guaranteeing the quality and effectiveness of its medical care despite the ongoing difficulties. Health and Safety Business Continuity From the very beginning, the G
Slide 40: COVID-19 Response Protocols (II/IV)
COVID-19 Response Protocols (II/IV) Back office & Operations Medical Council Responsibilities Training Patient Pathway BCP Key Pillars “To Adopt and Agile Ensuring the safety of our staff and patients Decision-Making Mentality” Disinfection & PPE Space Optimization Potential COVID-19-Positive Patien
Slide 41: COVID-19 Response Protocols (III/IV)
COVID-19 Response Protocols (III/IV) As demand for private COVID- Medical Council 19 treatment centres increased so did the number STEP 1 STEP 2 STEP 3 STEP 4 of suspected cases Patients flowing into the ER’s Patients are triaged and If results are positive and Once the MOHP is informed approaching
Slide 42: COVID-19 Response Protocols (IV/IV)
COVID-19 Response Protocols (IV/IV) In light of the COVID-19 pandemic and in an effort to better serve its patients and aid the Ministry of Health and Population in its fight against the virus, Cleopatra Hospital Group has transformed both Queens Hospital (which was currently undergoing a full renov
Slide 43: Additional Information and Financial Disclosures
Additional Information and Financial Disclosures Cleopatra Investor Presentation FY 2021 43
Slide 44: Balance Sheet and Leverage
Balance Sheet and Leverage Balance Sheet Summary Cashflow Movement Balance Sheet Summary (EGP 000') Dec-20 Dec-21 Cash & Cash Equivalent 551 846 Inventory 66 51 Debtors and other debit balances 514 576 Current Assets 1,131 1,473 Fixed Assets 1,205 1,352 Intangible Assets 428 426 Non-Current Assets 2
Slide 45: Cash Conversion Cycle
Cash Conversion Cycle DIO DSO 50 105 97 41 77 32 Dec - 19 Dec - 20 Dec - 21 Dec - 19 Dec - 20 Dec - 21 DPO Cash Conversion Cycle 46 32 120 123 100 18 9 Dec - 19 Dec - 20 Dec - 21 Dec - 19 Dec - 20 Dec - 21 Cleopatra Investor Presentation FY 2021 45
Slide 46: Consolidated Income Statement
Consolidated Income Statement All figures in EGP mn 4Q2021 4Q2020 % change FY 2021 FY 2020 % change Revenues 648.7 610.6 6% 2,549.3 1,989.5 28% Cost of sales (408.4) (374.8) 9% (1,618.6) (1,300.0) 25% Gross profit 240.3 235.7 2% 930.7 689.6 35% Gross Profit Margin 37% 39% 37% 35% General & administr
Slide 47: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP mn 31 December 2020 31 December 2021 Non-current assets Fixed assets 1,205.2 1,351.7 Intangible assets 427.6 425.5 Right of use 18.8 174.7 Payment under investment - 5.7 Investment in associates 1.1 2.2 Total non-current assets 1,652.7 1,959.8 Current as
Slide 48: Consolidated Cashflow Statement
Consolidated Cashflow Statement All figures in EGP mn 31 December 2020 31 December 2021 Cash flow from operating activities: Profit before tax 251.9 389.4 Adjustments for: Depreciation 84.4 113.9 Right of use depreciation - 26.0 Amortization of intangible assets 4.0 15.9 Allowance for impairment of
Slide 49: A Unique Investment Story (I/III)
A Unique Investment Story (I/III) Market Leader in a Growing Market with Strong Long-term Prospects • Highly fragmented market with a small number of institutionalized and strong Number of Beds per 1,000 Citizens Egypt’s Number of Beds Breakdown brand players 2.90 127,600 • Significant under supply
Slide 50: A Unique Investment Story (II/III)
A Unique Investment Story (II/III) Strong Management with Structured Organizational Chart to Oversee All Aspects of the Business • CHG has created a central management Audit Committee Board of Directors team that focuses on setting the overall strategy of the Group • Centralized back-office function
Slide 51: A Unique Investment Story (III/III)
A Unique Investment Story (III/III) Scale and Cost Synergies • Group-wide tenders in pharmaceuticals and medical consumables that drive scale cost efficiencies and improve margins • Scale volume benefits from providing payors with a network of healthcare services solutions • The size of the Group’s
Slide 52: Thank you
Thank you INVESTOR RELATIONS CONTACTS SHAREHOLDER INFORMATION Telephone: +2 02 23103771 EGX: CLHO.CA E-mail: ir@cleopatrahospitals..com Listed: June 2016 investors.cleopatrahospitals.com Shares Outstanding: 1.6 billion Cleopatra Investor Presentation FY 2021 52
Cleopatra Hospitals Group — FY2021 Earnings Presentation on 6ix