Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — Q1 2019 Earnings Presentation
45 slides from Cleopatra Hospital's earnings presentation, 2019
Slide 1: Cleopatra Hospital Company Investor Presentation 1Q19
Cleopatra Hospital Company Investor Presentation 1Q19
Slide 2: At a Glance: Revolutionizing Egypt's healthcare industry
At a Glance: Revolutionizing Egypt’s healthcare industry Cleopatra Hospital Group (CHG) is Egypt’s largest private hospital group by number of its hospital beds and operating hospitals. Over the last five years, the Group has revolutionized the Egyptian healthcare industry by bringing high quality,
Slide 3: At a Glance: CHG financial highlights
At a Glance: CHG financial highlights In 2018, CHG reported solid year-on-year growth in both its top and bottom line, with the Group generating revenue EGP 125.2 mn EGP 416.0 mn EBITDA2 in 1Q19 with a Consolidated revenues in 1Q19 with growth from all four of its 30% margin 20% growth y-o-y operati
Slide 4: At a Glance: CHG facilities and staff
At a Glance: CHG facilities and staff Cleopatra Hospital Company, is the largest private hospital group in Egypt and consists of four operational hospitals all in Cairo, namely: 4 (2018) + 2 2 Polyclinics East Cairo polyclinic is (20191) operational as of February 2019. Operational hospitals While W
Slide 5: At a Glance: A network of hospitals located strategically across greater Cairo
At a Glance: A network of hospitals located strategically across greater Cairo Queens Location Mohandesin,Giza Location Heliopolis, Cairo Location Heliopolis # of Beds 121 # of Beds 188 # of Beds 50 Al Katib (1) Location Dokki # of Beds 89 Location Maadi, Cairo # of Beds 152 ⚫ Operating hospitals ⚫
Slide 6: Clearly Defined Growth Strategy
Clearly Defined Growth Strategy Our growth strategy is based on six key pillars: Build up and exploitation Integrating the platform of Cleopatra unified to achieve higher brand in marketing and efficiencies sales Enhancing utilization and Leveraging stronger optimizing existing position with credit
Slide 7: Key Investment Highlights
Key Investment Highlights
Slide 8: Key Investment Highlights
Key Investment Highlights 1 2 3 4 5 Leading position in Leverage on Solid financial Strong management a highly fragmented integrated platform performance with team with market and scale to extract potential for experienced board of synergies enhanced directors profitability Underserved and under-pen
Slide 9: Supply Gap in Egyptian Healthcare Industry
Supply Gap in Egyptian Healthcare Industry Population (millions) Hospital Beds (/1,000 people) | 2017 CAGR: 2.2 % 10.5 110.0 96.0 98.0 100.0 88.0 90.0 92.0 83.0 86.0 4.6 3.5 2.5 2.2 1.8 1.8 1.3 1.1 1.1 2013 2014 2015 2016 2017 2018 2019e 2020e 2025e Healthcare Expenditure per Capita (USD) | 2017 Bas
Slide 10: Healthcare Expenditure in Egypt
Healthcare Expenditure in Egypt Total value of healthcare insurance premiums | EGP mn Public vs. Private Healthcare Expenditure | EGP bn 102 104 104 106 108 113 118 124 130 1% 22% 16% 26% 27% 61.8 61.2 60.6 59.7 58.7 58.1 57.6 57.2 56.8 38.2 38.8 39.4 40.3 41.3 41.9 42.4 42.8 43.2 934 735
Slide 11: Healthcare Demand in Egypt
Healthcare Demand in Egypt Distribution of healthcare expenditure Number of Hospital Beds – Public and Private Sectors (2011-2015) 128 125 29 38% 40% 31 40% 62% 98 94 20% 2011 2015 OOP Corporate Insurance Public Private Public Private Distribution of healthcare expenditure Insurance and Due to the s
Slide 12: Lifestyle Disease Profile in Egypt
Lifestyle Disease Profile in Egypt Cancer Prevalence in Egypt | 000 cases Hepatitis C Prevalence (000 cases) | 2012 65.3 67.5 69.8 63.0 6,023 3.2 3.3 3.0 3.1 8.3 8.6 8.9 8.0 8.9 8.0 8.3 8.6 16.0 16.6 17.1 17.7 3,403 28.0 29.0 30.0 31.0 1,473 1,215 2013 2015 2020 2025 254 43 25 16 7 6 Liver Breast Di
Slide 13: Key Investment Highlights
Key Investment Highlights 1 2 3 4 5 Underserved and Leverage on Solid financial Strong management under-penetrated integrated platform performance with team with market with steady and scale to extract potential for experienced board of demand growth synergies enhanced directors profitability Leadin
Slide 14: Leading Position in a Market with High Barriers to Entry
Leading Position in a Market with High Barriers to Entry Largest institutional hospital group in Egypt by Capturing the largest share of the top 15 large …And by number of hospitals(1) … number of beds… private hospitals in Cairo (1) (1) 782 6 6 out of top 13 private hospitals 470 388 (2) 3 3 in Cai
Slide 15: Key Investment Highlights
Key Investment Highlights 1 2 3 4 5 Underserved and Leading position in Solid financial Strong management under-penetrated a highly fragmented performance with team with market with steady market potential for experienced board of demand growth enhanced directors profitability Leverage on integrated
Slide 16: CHG's Integration model
CHG’s Integration model Integration, Optimization of Operations Effect on CHG Umbrella Brand Unified Pricing & Unified Financial Optimize operations and Institutionalizing Corporate Centralized Unified Expansion Value Creation Name for Each Positioning Sops & management the Group Governance Corporat
Slide 17: Key Investment Highlights
Key Investment Highlights 1 2 3 4 5 Underserved and Leading position in Leverage on integrated Strong management under-penetrated a highly fragmented platform and scale to team with market with steady market extract synergies experienced board of demand growth directors Solid financial performance w
Slide 18: Solid Financial Performance
Solid Financial Performance While Cleopatra hospital remains the main revenue contributor to the group, the rest of the group hospitals progressed with growth in the overall group revenues, gross profit and EBITDA Group Revenue | EGP mn Revenue Breakdown | Q1 2019 CAGR: 20% 17% Cleopatra 25% 44%
Slide 19: Key Revenue Drivers
Key Revenue Drivers Revenue from inpatient admissions and outpatient visits have demonstrated growth y-o-y, at 22% and 4% respectively Group Revenue Contribution by No. Patients | ‘000s Segment (2019 ) 62.0 54.3 57.4 47.8 47.2 49.9 50.0 48.0 16% 20% 5% 4% Outpatient visits Inpatient admissions 12% 2
Slide 20: Key Revenue Drivers
Key Revenue Drivers Driven by surgeries and ER visits, and increasing revenue per visit of 23% and 12% respectively, revenues from each of the mentioned segments have witnessed a notable growth ER Visits | 000s No. of Surgeries | 000s 260 261 247 257 35 37 36 35 2015 2016 2017 2018 2015 2016 2017 20
Slide 21: Key Revenue Drivers
Key Revenue Drivers Revenue per bed at group hospitals have demonstrated growth as a result of better utilization and case mix strategy. Revenue Progression Cleopatra Hospital | EGP mn Nile Badrawi | EGP mn by Hospital 27% 27% 23% 76 17% 184 158 62 1.0 0.5 0.4 0.9 47 114 Q1 2018 Q1 2019 Q1 2
Slide 22: Key Investment Highlights
Key Investment Highlights 1 2 3 4 5 Underserved and Leading position in Leverage on integrated Solid financial under-penetrated a highly fragmented platform and scale to performance with market with steady market extract synergies potential for demand growth enhanced profitability Strong management
Slide 23: Matrix Organizational Structure
Matrix Organizational Structure CHG has adopted a matrix organizational structure optimizing its operations and managing the employees effectively. The group has appointed the following directors: 2015 2016 2017 2018 Building the foundation • CEO • Supply Chain • Legal • Marketing • CFO • IT • Inter
Slide 24: The Expansion Strategy
The Expansion Strategy Cleopatra Investor Presentation 1Q19 24
Slide 25: Expansion strategy
Expansion strategy 1 2 3 4 5 6 Building Additional Strategic Acquisitions Brownfield/Greenfield Expanding reach Creating Strategic Capacities in Existing of Operating Hospitals Expansions beyond Greater Cairo entities to serve facilities Group’s scale of operations Creating Feeder networks Cleopatra
Slide 26: Feeder network started by the first polyclinics in East and West Cairo
Feeder network started by the first 2 polyclinics to present in East and West Cairo Polyclinics act as feeder networks for patient referral for the group hospitals. Specialized across different specialties including internal medicine, dentistry, radiology, ENT, cardiology, orthopedic, gynecology and
Slide 27: Feeder network started by the first polyclinics in East and West Cairo
Feeder network started by the first 2 polyclinics to present in East and West Cairo 5th settlement (East Cairo) Polyclinic operational as of February 2019 Cleopatra Investor Presentation 1Q19 27
Slide 28: Expansion strategy
Expansion strategy 1 2 3 4 5 6 Creating Feeder Strategic Acquisitions Brownfield/Greenfield Expanding reach Creating Strategic networks of Operating Hospitals Expansions beyond Greater Cairo entities to serve Group’s scale of operations Building Additional Capacities in Existing facilities Cleopatra
Slide 29: New extension for Al-Shorouk hospital
New extension for Al- Shorouk hospital Al Shorouk hospital expansion In Q2 2018, the group signed Vital Konzept, a leading Engineering & Consultancy Firm to start the process of Drawings for the extension in preparation for releasing the project for tendering with expected timeline of completion 18
Slide 30: Expansion strategy
Expansion strategy 1 3 3 4 5 6 Creating Feeder Building Additional Brownfield/Greenfield Expanding reach Creating Strategic networks Capacities in Existing Expansions beyond Greater Cairo entities to serve facilities Group’s scale of operations Strategic Acquisitions of Operating Hospitals Cleopatra
Slide 31: Strategic Acquisitions of Operating Hospitals
Strategic Acquisitions of Operating Hospitals El Katib Hospital (Dokki, Giza)(1) During September 2017, CHG signed definitive agreements to acquire the real estate assets and the operational assets of a new hospital in West Cairo 89 Hospital Beds Kidney Specialist offering a complementary service Th
Slide 32: Strategic Acquisitions of Operating Hospitals
Strategic Acquisitions of Operating Hospitals Queens Hospital (Heliopolis, East Cairo) Given OGM 50 Hospital Beds in Hospital current approval, CHG has Heliopolis (Segment focus is on finalized and A area) gynecology and started operating pediatrics Queens hospital as specialties. of March 2019 CHG
Slide 33: Expansion strategy
Expansion strategy 1 2 3 4 5 6 Creating Feeder Building Additional Strategic Acquisitions Creating Strategic networks Capacities in Existing of Operating Hospitals entities to serve facilities Group’s scale of operations Brownfield/ Expanding Greenfield reach beyond Expansions Greater Cairo Cleopatr
Slide 34: CHG is working on expansions in brownfield hospitals and outside of Cairo
CHG is working on expansions in brownfield hospitals and outside of Cairo Brownfield / Greenfield expansion Expanding reach beyond greater Cairo The group is currently assessing Potential hospital is named “ In Bani Suef CHG entered into a Footprint expansion and shortlisting potential New Cairo bro
Slide 35: Expansion strategy
Expansion strategy 1 2 3 4 5 6 Creating Feeder Building Additional Strategic Acquisitions Brownfield/Greenfield Expanding networks Capacities in Existing of Operating Hospitals Expansions reach beyond Greater facilities Cairo Creating Strategic entities to serve Group’s scale of operations Cleopatra
Slide 36: Strategic initiatives and entities created by CHG to enhance efficiencies
Strategic initiatives and entities created by CHG to enhance efficiencies in operation As part of the group’s strategy to leverage synergies and expand its service offerings , CHG is now in the process of creating business operation entities: Cleopatra entity for importing Pharmaceutical Cleopatra A
Slide 37: Governance & Shareholder Information
Governance & Shareholder Information Cleopatra Investor Presentation 1Q19 37
Slide 38: CHG is lead by a Diversified and Experienced Board of Directors
CHG is lead by a Diversified and Experienced Board of Directors Healthcare Experts Financial and Investment Experts Dr. Mohamed Awad Dr. Ahmed Ezzeldin Tarek Kabil Tag El Din Omar Ezz Al Arab Executive Member & Image Former Minister of Former Minister of Care Healthcare Group CEO Trade and Industry
Slide 39: Key Investor Information
Key Investor Information Cleopatra Hospitals Company’s Care Health Limited’s Key Shareholders Shareholder Structure 31% DEG, the German Investment A Development Financial An international financial and Development Corporation, Institution partly owned by institution, which uses Care Healthcare Limit
Slide 40: Appendix I: Financial Statements & Management Commentary
Appendix I: Financial Statements & Management Commentary Cleopatra Investor Presentation 1Q19 40
Slide 41: Consolidated Income Statement
Consolidated Income Statement All figures in EGP mn 1Q2019 1Q2018 % change FY2018 FY2017 % change Revenues 416.0 347.2 20% 1456.1 1126.8 29% Cost of sales (261.8) (229.8) 14% (942.5) (788.2) 20% Gross profit 154.2 117.3 31% 513.6 338.6 52% Gross Profit Margin 37% 34% 35% 30% General & administrative
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP mn 31 March 2019 31 March 2018 Non-current assets Fixed assets 618.2 560.5 Intangible assets 255.1 241.0 Payment under investment 143.9 143.9 Total non-current assets 1,017.2 945.4 Current assets Inventory 48.1 40.8 Accounts receivables 317.4 302.8 Other
Slide 43: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement All figures in EGP mn 31 March 2018 31 March 2019 Cash flow from operating activities: Profit before tax 75.3 80.6 Adjustments for: Depreciation 10.4 14.0 Amortization of intangible assets - - Allowance for impairments of current assets 6.9 31.9 Provisions 5.0 0.5 Ca
Slide 44: Led by an experienced Management Team with Clear Organizational Structure
Led by an experienced Management Team with Clear Organizational Structure Strong matrix organizational structure is being implemented at CHG to smooth and improve operations efficiency Audit Committee Board of Directors Ola Ahmed Internal Audit Manager Dr. Ahmed Ezz El Din – Chief Executive Officer
Slide 45: Thank you
Thank you INVE STOR RE LA TIONS C ONTAC TS SHARE HOLDE R INFORMATION Telephone: +2 02 23103771 EGX: CLHO.CA E-mail: ir@cleopatrahospitals..com Listed: June 2016 investors.cleopatrahospitals.com Shares Outstanding: 1.6 billion C leopatra Inves tor P res entation 1Q19 45
Cleopatra Hospital Company — Q1 2019 Earnings Presentation on 6ix