26 slides from Mlp Saglik Hizmetleri As Class B's earnings presentation, Nov 7, 2018
Slide 1: MLP Care 9M 2018 Presentation
MLP Care 9M 2018 Presentation 7 November 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain certain forward-looking statements concerning MLP Care’s future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently ava
Slide 3: Muharrem Usta, Chairman & CEO
Muharrem Usta Chairman & CEO 3
Slide 4: Executive Summary
Executive Summary • Strong growth continued despite the headwinds: Revenue up 25%, Revenue Incl. Managed Hospitals1 up 32%, Adj EBITDA1 up 41% and Comparable Adj EBITDA2 up 56% in Q3 2018 • Secular growth trend in foreign medical tourism continued with 83%, making up 13% of total revenue; Continued
Slide 5: Capacity Expansion on Track in 2018
Capacity Expansion on Track in 2018 +2 +500 New Hospital New Beds in 2018 in 2018 17 Cities 18.000+ Staff 31 Hospitals ~5.900 in Total Beds in Total 2.000+ Doctors 5
Slide 6: Revenue and EBITDA Growth Above Inflation
Revenue and EBITDA Growth Above Inflation 1000,0 Revenue 25,00% EBITDA1 and EBITDA % 3.500 900,0 800,0 3.000 20,00% 700,0 16.7% 15.9% 15.7% 2.500 15.1% 600,0 12.9% 15,00% 2,576 2.000 2,251 500,0 1,873 400,0 10,00% 1.500 1,843 300,0 409 375 1.000 353 200,0 282 5,00% 238 500 100,0 0 - 0,00% 2015 2017
Slide 7: Double Digit Growth in Majority of Payor Types
Double Digit Growth in Majority of Payor Types Revenue Breakdown by Payor Type – 9M 2018 Revenue from PMI, Top-up & Contracted Institutions grew by Other 47% 33.0% in 9M 2018 Medical 9% Tourism SSI Top-up Insurance continues to lead 71% 10% the growth (92% growth in 9M 2018) 30% PMI, Top- Medi
Slide 8: Top-up Insurance Market Continues to Grow
Top-up Insurance Market Continues to Grow and positively impacts MLP Care’s revenues # of People With Insurance (PMI and Top-up) in Turkey – 000s Growth CAGR (2014-2017) (9M 2017-9M 2018) 3500,0 2,678 2,703 2,974 2,214 2,281 6.9% 2,554 16.4% 3000,0 2500,0 134 405 807 64 676 119.1% 573 40.8% 2000,0 1
Slide 9: Medical Tourism Revenue Up by 83% in Q3 2018
Medical Tourism Revenue Up by 83% in Q3 2018 Medical Tourism Revenue (TLm) Diversified and Balanced Geography. Patients comes from: 32.4% 250 • Europe 38% 39.1% 200 42 224 • Middle East and Africa 31% 51 150 • Former CIS and the rest 31% 100 131 Strong marketing through offices / 71.4% 50 affili
Slide 10: Burcu Öztürk, CFO
MLPCARE Burcu Oztiirk CFO 10
Slide 11: Comparable Adj. EBITDA Up by 33% in 9M 2018
Comparable Adj. EBITDA Up by 33% in 9M 2018 Revenue (TLm) Adj. EBITDA1 (TLm) 27.2% 32.8% 20.2% 450 24.9% 3.000 400 2 2.500 32.1% 350 55.6% 2.000 300 25.0% 2.251 250 40.7% 353 1.500 1,873 200 1.000 150 2 282 100 500 782 102 625 50 73 0 0 Q3 2017 Q3 2018 9M 2017 9M 2018 Q3 2017 Q3 2018 9M 2017 9M 2018
Slide 12: Strong Growth in All Revenue Segments in 9M 2018
Strong Growth in All Revenue Segments in 9M 2018 Domestic Patient Medical Tourism Ancillary Business Revenues Revenues 13.8% 71.4% 47.2% 14.6% 82.7% 84.8% 1,834 224 193 99 74 608 Q3 2018 9M 2018 Q3 2018 9M 2018 Q3 2018 9M 2018 Growth Continued in 9M 2018 Continued to Attract Foreign Strong Growth in
Slide 13: Strong Improvement in Both ARPV and ARPP in 3Q 2018
Strong Improvement in Both ARPV and ARPP in 3Q 2018 Outpatient Revenues (TLm) Inpatient Revenues (TLm) 17.8% 1.250 11.3% 1.000 1.200 900 4.8% 35.8% 1.150 800 (18.0%) 1.100 6.5% 700 224 1.050 47 1,096 738 600 (113) 1.000 65 500 626 950 400 900 985 300 850 200 800 9M 2017 Volume & Price 9M 2018 9M 201
Slide 14: Smart Cost Management Results in Profitability Growth
Smart Cost Management Results in Profitability Growth Cost of Service and G&A Expenses as a % of Revenues Material costs as a % of revenue declined, helped by the patient Adj. EBITDA Margin 15.1% 15.7% mix impact and decline in share of laboratory services business 8.4% 7.6% revenues (with higher
Slide 15: FX Exposure Mitigated by Hedging
FX Exposure Mitigated by Hedging FX BASED NET DEBT (in EUR m) NET DEBT 9M 2018 50,0 Before Hedging After Hedging 1 EUR107m EUR47m 204 (TL743m) (TL328m) 00,0 26% 44% 50,0 56% Percentage 74% 104 00,0 TL587m TL959m 81 Local Currency Local Currency 60 Hard Currency Hard Currency 47 50,0 - Nominal TL1,33
Slide 16: FX Position of Income Statement
FX Position of Income Statement Hard Hard Currency as % of TLm 9M 2018 Currency Total Revenues 30 Eylül Share of Medical Tourism Revenue in Domestic Hospital Revenue 1,834 - - Foreign Medical Tourism 224 224 10% 2018 Total Revenue Ancillary 193 - - increased to 13% in Total revenues 2,251 224 10% it
Slide 17: Trade Receivables Increased In Line with Strong Revenue Growth
Trade Receivables Increased In Line with The Strong Revenue Growth Leading to Lower Operating Cash Flow Maintenance Capex (TLm) Total Capex (TLm) Operating Cash Flow / EBITDA 127.2% 2.9% 61.0% 2.5% 400,0 70,0 250,0 350,0 60,0 200,0 300,0 65 230 359 50,0 250,0 40,0 150,0 189 47 200,0 30,0 100,0 150,0
Slide 18: Outlook & Prospects
Outlook & Prospects Muharrem Usta – Chairman & CEO 18
Slide 19: Outlook & Prospects
Outlook & Prospects 2018 has been a challenging environment due to currency volatility and increasing inflation. Our targets are: Operational targets Increase operational excellence and adjust our targets upwards Enhance patient satisfaction Improve the mix on higher revenue and EBITDA generat
Slide 20: CARE
CARE
Slide 21: Closing Remarks
Closing Remarks Muharrem Usta – Chairman & CEO 21
Slide 22: Closing Remarks
Closing Remarks • Strong revenue growth continues • Increasing contribution of Medical Tourism • Actively manage pricing in the high inflationary period • Focus on deleveraging our balance sheet and mitigate FX impact • No Expansion Capex until interest rates normalize in Turkey 22
Slide 23: Thank You!
Thank You! MLP Care Investor Relations Deniz Can Yücel +90 212 227 5555 (Ext: 1148) deniz.yucel@mlpcare.com http://investor.mlpcare.com/en/
Slide 24: Historical P&L Statements
Historical P&L Statements Unaudited Audited TLm 9M 2018 Q3 2018 Q3 2017 9M 2017 Revenue 2,251 1,873 782 625 Cost of service (-) (1,902) (1,593) (671) (537) Gross profit 349 281 110 88 General administration expenses (-) (189) (136) (66) (53) Other income from operations 467 255 310 94 Other expenses
Slide 25: Historical Balance Sheet
Historical Balance Sheet Unaudited Audited TLm September 30, 2018 December 31, 2017 Cash and cash equivalents 283 218 Trade receivables 886 750 Inventory 82 51 Short term other assets 303 142 Current assets 1,553 1,161 Fixed assets 1,303 1,220 Deferred tax assets 294 197 Long term other assets 173 1
Slide 26: Reconciliation from Reported EBITDA to Adjusted EBITDA
Reconciliation from Reported EBITDA to Adjusted EBITDA TLm 9M 2018 9M 2017 Q3 2018 Q3 2017 Net Profit / (Loss) (143) (73) (135) (53) Tax Income from Operations (66) (15) (20) (7) Depreciation and Amortization of Tangible and Intangible Fixed Assets 141 128 51 45 Total Interest Expenses, Net of Inter