Slide 1: 1Q2020 Results Presentation
1Q2020 Results Presentation June 2020
Slide 2: Contents
Contents: • 1Q2020 Results • Covid-19 Response Measures • Growth Strategies • Expanding Customer Reach • “Wayak” Investment • Al Borg Scan Updates • Nigeria Updates • Appendix 2 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 3: Results Snapshot
Results Snapshot IDH continued to demonstrate resilience as operations were partly impacted by Covid-19 Revenue Split EGP 500 mn EGP 243 mn Revenue in 1Q 2020 Gross Profit in 1Q 2020 ▼8% y-o-y ▼9% y-o-y / 49% margin IDH revenue by geography IDH revenue by type (1Q2020) (1Q2020) EGP 203 mn EGP 102 mn
Slide 4: Revenue Growth Drivers
Revenue Growth Drivers Revenues for the first quarter of the year came in at EGP 500 million, down 8% year-on-year on the back of a lower volumes at Egypt’s contract segment. Revenue Growth Drivers | EGP mn, % -8% 2 1 546 500 (1) (48) 1Q2019 Egypt Jordan Sudan Nigeria 1Q2020 Egypt was the primary dr
Slide 5: Segment Performance
Segment Performance Revenue mix normalized from higher campaign-related contract volumes last year Contract Segment Walk-In Segment Total 1Q2019 1Q2020 Change 1Q2019 1Q2020 Change 1Q2019 1Q2020 Change Revenue (EGP ‘000) 353,987 272,522 -23% 192,100 227,234 18% 546,087 499,757 -8% % of Revenue 65% 55
Slide 6: A Focus on the 100 Million Healthy Lives Campaign
A Focus on the 100 Million Healthy Lives Campaign The campaign was launched in November 2018 and ended in June 2019 IDH 1Q2020 Patient Volumes | ‘000 IDH 1Q2020 Tests per Patient | ‘000 -21% -8% 1,986 4.2 The awareness 152 1,571 Excluding the impact of 10.8 3.9 campaign added 152 the Campaign, test
Slide 7: A Ramp-up of Operations at Al Borg Scan
A Ramp-up of Operations at Al Borg Scan Al Borg Scan Revenue Progression | EGP mn 1.53 1.47 1.45 1.37 1.39 1.37 1.37 1.18 1.13 1.08 1.06 0.94 0.90 1.28 0.84 0.80 0.70 0.34 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 EG
Slide 8: Regional Performance
Regional Performance Consolidated top-line contracted year-on-year on the back of lower revenues recorded by IDH’s Egyptian operations Revenues | EGP mn EBITDA* | EGP mn / % -10% -17% EGYPT In Egypt, revenues were down 10% 471 227 y-o-y on the back of lower volumes. 424 188 84.7% EGP 424 mn Excludin
Slide 9: Strong Group Profitability
Strong Group Profitability Gross profit margin came in unchanged versus the same period of last year as decreased raw material costs helped mitigate lower revenues for the quarter IDH COGS Breakdown | EGP mn / % of Revenue IDH SG&A Breakdown | EGP mn / % of Revenue -8% +24% IDH’s consolidated 279 25
Slide 10: Strong Group Profitability
Strong Group Profitability IDH’s net profit margin stood at 21% for the quarter IDH Interest Expenses| EGP mn / % of Revenue IDH Taxes | EGP mn / % of Revenue -10% -15% The decline in interest 20.1 60.0 18.1 51.0 expenses came largely 7.4 5.5 on the back of 6.6 3.8 IDH’s effective tax rate consecuti
Slide 11: Summary Balance Sheet
Summary Balance Sheet 31 March 31 December EGP'000 2020 2019 Assets Non-current assets Property, plant and equipment 773,372 785,547 Adoption of IFRS 16 added EGP 270 million in Intangible assets and goodwill 1,656,874 1,660,836 right-of-use assets as of 31 March 2020. Right-Of-Use Asset 270,077 264
Slide 12: Summary Cash Flow Statement
Summary Cash Flow Statement EGP'000 31 March 2019 31 March 2020 Profit for the period before tax 196,118 153,531 Net cash flow from operating activities stood at Net cash from operating activities before WC 223,515 210,169 EGP 163 million for 1Q 2020, with the Group Change in working capital (47,695
Slide 13: Covid-19 Internal Protocols and Preventative Measures
Covid-19 Internal Protocols and Preventative Measures In light of the recent covid-19 global outbreak, IDH, in line with World Health Organization (WHO) guidelines, has implemented detailed internal protocols to guarantee the safety of its staff and patients and safeguard its operations. IDH’s respo
Slide 14: Growth Strategies
Growth Strategies 14 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 15: Expanding Customer Reach
Expanding Customer Reach IDH’s nationwide presence and strong brand equity position it well to benefit from state- sponsored campaigns to increase awareness of preventative healthcare with diagnostic testing Duration “100 Million Healthy Lives” campaign The largest health campaign under the directiv
Slide 16: Expanding Customer Reach
Expanding Customer Reach Parallel to state-sponsored initiatives, IDH also runs its own awareness campaigns focusing on specific diseases on a monthly basis and offering discounts on related testing IDH Monthly Disease Awareness Campaign Plans IDH implements monthly campaigns targeting specific dise
Slide 17: New Investment in Wayak
New Investment in Wayak IDH launches new subsidiary “Wayak” to offer data-driven healthcare services, utilising data analytics and artificial intelligence to capitalise on IDH’s database of over c.13 million patients Wayak Services Medication to be Service provider Diagnostics Discounted services Cu
Slide 18: Al Borg Scan Expansion Updates
Al Borg Scan Expansion Updates In February 2020, operations commenced at Al Borg Scan’s second branch in Cairo Rationale Key Service Offering & Suppliers Leverage the strong relationship between the Al Borg brand and its Al Borg Scan’s Mohandeseen branch offers a full range of radiology millions of
Slide 19: Delivering on Our Strategies – Nigeria Expansion
Delivering on Our Strategies – Nigeria Expansion In December 2017, IDH further expanded its geographical footprint with an investment in Nigeria, a value-accretive acquisition in a large, fragmented and underpenetrated diagnostic services market where our business model is well-suited to capitalise
Slide 20: Nigeria Expansion Updates
Nigeria Expansion Updates Operational progress in Nigeria expansion with existing branches being refurbished and renovated and with loss-making branches being relocated or closed Branch Renovations & Rebranding Operational Milestones Hiring new management staff Rebranded the company to Echo-Lab (fro
Slide 21: Nigeria Branch Roll-Out and Renovations
Nigeria Branch Roll-Out and Renovations Opebi Branch Renovation and Rebranding New Victoria Island Branch Area 11 Branch Renovation and Rebranding Benin Branch Renovation & Rebranding 21 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 22: Nigeria Recently Acquired Equipment I/II
Nigeria Recently Acquired Equipment I/II Victoria Island Branch Opebi Branch 22 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 23: Nigeria Recently Acquired Equipment II/II
Nigeria Recently Acquired Equipment II/II Garki Branch Benin Branch 23 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 24: Appendix
Appendix 24 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 25: Who We Are
Who We Are Integrated Diagnostics Holding is a leading, fully-integrated provider of high-quality medical diagnostic services with a footprint spanning Egypt, Jordan, Sudan and Nigeria Our Services Our Patients Immunology Radiology Hematology Walk-In Patients Endocrinology Clinical Chemistry Molecul
Slide 26: Our Geography
Our Geography IDH’s branch network of 457 labs at 1Q2020 spans 4 countries, the largest of which is Egypt 19 The Company’s Egyptian operations contributed branches 85% of consolidated revenues in 1Q2020 405 Jordan Branches EGYPT Egypt 84.7% 1979 1Q2020 Cairo Region 46.7% Upper Egypt Region 16.8% JOR
Slide 27: Favorable Industry Dynamics
Favorable Industry Dynamics Structural Growth Drivers Powerful structural growth drivers underpin Egypt’s healthcare growth story, including an ever-expanding population, rising lifestyle diseases, favorable government regulation and increased medical tourism Lab tests per capita (2012) 23.2 High Di
Slide 28: Asset-light Business Model
Asset-light Business Model Hub, Spokes and Spikes IDH’s “Hub, Spoke and Spike” business model enables the Company to organically expand its reach in highly-fragmented markets with underserved diagnostic services demand Mega Lab: “Hub” • The Mega Lab, the largest automated lab in Egypt, serves as IDH
Slide 29: Our Mega Lab
Our Mega Lab State-of-the-Art Equipment with High Capacity and Throughput Capabilities Capacity Procurement • Mega Lab machines are capable of conducting a • Inauguration of IDH’s Mega Lab in 2015 doubled the • Central procurement system ensures coordinated wide range of tests including basic blood
Slide 30: Key Supplier Relationships
Key Supplier Relationships IDH leverages its bargaining power with suppliers to maximize value in a business that is fundamentally about COGS economy of scale Dynamics of Supplier Relationships • The majority of testing equipment is provided at no upfront cash cost in return for which IDH agrees to
Slide 31: Human Resources Development
Human Resources Development Training IDH views education as an essential means of ensuring quality across its laboratories. We strive to create a diverse, productive culture and a safe working environment in order to empower our people to reach their full potential Training streams Medical / scienti
Slide 32: IDH is a Consumer-Facing Service Provider
IDH is a Consumer-Facing Service Provider The mechanics of the Egyptian healthcare market are markedly different from those in many Western healthcare industries Egypt’s Private Healthcare System IDH serves the private healthcare A hospital outpatient clinic or While physicians ordering Patients the
Slide 33: Tactical Marketing Campaigns
Tactical Marketing Campaigns IDH’s tactical marketing programs are focused on driving patient and test volumes, especially in the higher-margin walk-in patient category IDH deploys marketing tools including: Walk-in patients are typically Egypt’s most vulnerable citizens, hurt most Gatherings for ph
Slide 34: Governance
Governance Overview IDH is committed to implementing best practices in corporate governance through the expertise of both the individual Directors and outside parties Internal Audit Procedures While not required to comply Anti-Bribery and Anti Corruption Policy (ABAC) with UK Corporate Governance T
Slide 35: A World-Class Board of Directors
Governance A World-Class Board of Directors The majority of members of IDH’s Board of Directors are independent and offer significant experience in the healthcare market, MENA region and investment activities Lord St John of Bletso 1 Prof. Dr. Hend El Sherbini Hussein Choucri 1,2,3,4 Independent Non
Slide 36: Sustainability
Sustainability Founded on the principle of providing quality medical assistance and services to better the lives of individuals and the community at large, IDH views corporate responsibility initiatives as an extension of its core purpose with the aim of improving communities in which it does busine
Slide 37: Investment Highlights
Investment Highlights IDH is an attractive investment opportunity with compelling fundamentals, present in fast-growing, under-served markets Formidable playing field with structural growth drivers, 1 high barriers to entry and a highly fragmented market Established business model with strong brand
Slide 38: IDH
INTEGRATED DIAGNOSTICS HOLDINGS IDH