Mlp Saglik Hizmetleri As Class B · BIST:MPARK
Mlp Saglik Hizmetleri As Class B — MLP Care — Non-Deal Roadshow (April 2018)
34 slides from Mlp Saglik Hizmetleri As Class B's roadshow presentation, Apr 16, 2018
Slide 1: HSBC Non-deal Roadshow, Paris - London
HSBC Non-deal Roadshow, Paris - London 16-19 April 2018
Slide 2: Disclaimer
Disclaimer 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 available data. Act
Slide 3: Overview of MLP Care
VA MEDICALPARK MEDICALPARK V1/nospiTaL Overview of MLP Care
Slide 4: MLP Care: The #1 Private Hospital Group in Turkey
MLP Care: The #1 Private Hospital Group in Turkey 17 Cities 30 Hospitals; 5.700+ Beds; More than the #2 2x the size of 2nd Largest 17.000+ Staff and #3 Competitors Combined Competitor 2.000+ Doctors Addresses All Price Segments 3 JCI Accredited Hospitals Revenues:2.6 billion TL in the Turkish Market
Slide 5: Net Sales, EBITDAR and EBITDA
Net Sales (TLm) EBITDAR¹ (TLm) EBITDA¹ (TLm) Growth %19 %29 %31 Margin Healthy balance sheet post IPO Net profit proforma for TL600m capital increase; TL47m (vs. reported net loss of TL 133m) Proforma Net debt / EBITDA: 1.9x (vs. reported ratio of 3.4x) ¹ EBITDA and EBITDAR figures have been ad
Slide 6: MLP Care is the Leading Private Hospital Group in Turkey
MLP Care is the Leading Private Hospital Group in Turkey 1 Operates in the Attractive Turkish Healthcare Market 2 Clear Leader in Private Hospital Provision 3 Strong Brand Recognition and Unique Business Model Addressing All Price Points 4 Clinical Excellence and World Class Service Offering 5 Super
Slide 7: Operates in the Attractive Turkish Healthcare Market
1 Operates in the Attractive Turkish Healthcare Market Turkey is an attractive healthcare market with a growing elderly population and level of affluence, with significant scope for expansion compared to OECD players Turkish Healthcare Spending to Providers1 (TLbn) Growth in Aging Turkish Population
Slide 8: Operates in the Attractive Turkish Healthcare Market: private sector share
1 Operates in the Attractive Turkish Healthcare Market Private operators have increased their market share, by increasing capacity and by focusing on procedures with higher complexity. Private players now account for 21% of beds, but provide 53% of complex surgeries. Number of Inpatient Visits (m) N
Slide 9: Supportive government policies and healthcare system
1 Operates in the Attractive Turkish Healthcare Market Supportive government policies have underpinned the expansion of private hospital groups Healthcare system and key participants Universal Healthcare Coverage with Patient Choice Regulation Funding Service Patients Universal healthcare coverage (
Slide 10: Clear Leader in Private Hospital Provision
2 Clear Leader in Private Hospital Provision MLP Care is the largest multi-specialty hospital group in Turkey and the only private player with a truly nationwide network Bed concentration in İstanbul: • MLP: 40% • Acibadem: 67% National and local leader with a network covering the • Memorial: 34%
Slide 11: MoH PPP program and private players
2 Clear Leader in Private Hospital Provision MoH is investing in the PPP program, but large private players do not expect to see an impact in the near / mid term Highly illustrative schematic of the Turkish Healthcare Sector PPP success factors Top end of the Private Hospital market City hospitals
Slide 12: Strong Brand Recognition and Unique Business Model Addressing Multiple Price Points
3 Strong Brand Recognition and Unique Business Model Addressing Multiple Price Points Three concepts targeting three different price points with consistently outstanding medical service quality Concept Overview and Positioning Relative Average Price per Payor Type 30 Total Hospitals in Portfolio 3 P
Slide 13: Balanced portfolio covering multiple payor types
3 Strong Brand Recognition and Unique Business Model Addressing Multiple Price Points Business model results in a balanced portfolio covering multiple payor types 2017 Revenue Breakup by Payor Type 40% 66% SSI Insurance provides access to the majority of Turkey’s 6% population 31% Revenue from P
Slide 14: Clinical Excellence and World Class Service Offering
4 Clinical Excellence and World Class Service Offering MLP Care benefits from a “Virtuous Circle” of best-in-class service, infrastructure and academic affiliations JCI accreditation SRC1 University affiliations The Gold Standard in Healthcare Globally The Global standard for quality surgical care M
Slide 15: Top tier talent and growing market share
4 Clinical Excellence and World Class Service Offering Top tier talent and patients are attracted to MLP Care’s unrivalled reputation, resulting in a steadily growing market share Ability to attract and retain top-tier physicians… CAGR Key points of attraction Proven track record of physicians recru
Slide 16: Financial Performance
VA MEDICALPARK MEDICALPARK V1/nospiTaL Financial Performance 16
Slide 17: Attractive double-digit historical growth
5 Superior Operational and Financial Performance Attractive double-digit historical growth Net Sales (TLm) EBITDA¹ (TLm) EBITDAR¹ (TLm) %19 %25 %26 CAGR 2014-2017 CAGR 2014-2017 CAGR 2014-2017 • Acquisition of 6 hospitals • 2 brand new • Opening of a University (2 of which are in Istanbul) • Opening
Slide 18: Strong Growth in All Segment Revenues in 2017
5 Superior Operational and Financial Performance Strong Growth in All Segment Revenues in 2017 Domestic Patient Medical Tourism Ancillary Revenues Revenues Business TL 2.203 m TL 188 m TL 185 m 15% growth 66% growth 40% growth Strong Growth In Line Attractive for Foreign Patients Growth Continues in
Slide 19: Mature and Developing hospitals performance
5 Superior Operational and Financial Performance Robust growth and financial performance seen across Mature and Developing hospitals… General Overview Mature Hospitals Developing Hospitals Breakdown of Beds - 2017 Revenue2 (millionTL) / Growth (%) Revenue2 (millionTL) / Growth (%) 14% 8% 17% 176% 78
Slide 20: Growth driven by volume and price
5 Superior Operational and Financial Performance …driven by balanced increases in volume and price… Mature Portfolio (TLm) Developing Portfolio (TLm) ∆19% 690 224 Outpatient 587 109 46 5 147 31 2016 Hospital Volume Price 2017 Hospital 2016 Hospital Volume Price 2017 Hospital Revenue Revenue Revenue
Slide 21: Smart Cost Management
5 Superior Operational and Financial Performance Smart Cost Management Hospital Cost Comparison as % of Sales Contribution 16.6% 17.5% Margin Material: Slight increase due to change in 11,7% 11,1% the revenue mix 7,6% 7,9% Doctor: Flat as doctor cost is ca. 95% variable 19,7% 18,5% Personnel:
Slide 22: Strong cash flow generation
5 Superior Operational and Financial Performance Strong cash flow generation Maintenance Capex 1 (TLm) Capex of New Hospitals (TLm) Free Cash Flow (TLm) 63% 73% %2.6 %2.6 % of Sales Remained flat as a percentage of Continued new hospital Strong free cash flow generation revenues at 2.6% invest
Slide 23: Deleveraging After Capital Injection Post IPO
5 Superior Operational and Financial Performance Deleveraging After Capital Injection Post IPO Net Debt Currency Breakdown Proforma Net Debt / 2017 Proforma EBITDA declines from 3.4x to 1.9x 1,381 mTL 793 mTL (m TL) 2016 2017 Net profit/(loss) (49) (133) FX gains/(losses) (85) (168) Capital IPO re
Slide 24: Outstanding Platform for Growth
Outstanding Platform for Growth 24
Slide 25: Quick ramp up in greenfields and acquisitions
6 Outstanding Platform for Further Growth Quick and successful ramp up in greenfields as well as acquisitions with typical range of 12-18 months to EBITDA-neutral hospitals Example of Greenfield Example of Acquisition Batıkent (Oct-2014) Yıldızlı (Sep-2014) Total Investment TL50m Total Investment Co
Slide 26: Proven track record of greenfield expansions and M&A
6 Outstanding Platform for Further Growth Proven track record of greenfield expansions and M&A Total Hospitals 25 26 27 29 31 33 35 At Year End MLP Care has added on average c.400 beds p.a.1 Acquired 6 Opened one 2 New Hospitals Two potential Bed Greenfield through greenfield projects since 2014 h
Slide 27: Several avenues to continue growth trajectory
6 Outstanding Platform for Further Growth MLP Care has several avenues to continue its growth trajectory 1 2 Top line growth via the Growth through favourable insurance scheme revenue diversification MLP Care has increased its market share in PMI over the years, growing its Expand premium servic
Slide 28: Appendix
VA MEDICALPARK MEDICALPARK V1/nospiTaL Appendix 28
Slide 29: Historical P&L Statements
Historical P&L Statements 2016 2017 TLm FY FY Revenue 2,160 2,576 Cost of service (-) (1,854) (2,171) Gross Profit 306 405 General administration expenses (-) (127) (215) Other income 198 380 Other expenses from operations (-) (169) (358) Operating Income 210 213 Finance expenses (-) (271) (383) Net
Slide 30: Historical Balance Sheet
Historical Balance Sheet 2016 2017 TLm Dec 31 Dec 31 Cash and cash equivalents 111 218 Trade receivables 724 750 Inventory 45 51 Short term other assets 136 142 Short term assets 1,016 1,161 Fixed assets 1,173 1,220 Deferred tax assets 146 197 Long term other assets 101 143 Long term assets 1,420 1,
Slide 31: Reconciliation from Reported EBITDA to Adjusted EBITDA
Reconciliation from Reported EBITDA to Adjusted EBITDA TLm 2016A 2017A Net Profit / (Loss) Before Taxes (49) (133) Depreciation and Amortization of Tangible and Intangible Fixed Assets 153 175 Total Interest Expenses, Net of Interest Income and Gain on Financial Derivatives 263 374 Net (Gains) / Los
Slide 32: Cost Comparison as a % of Sales
Cost Comparison as a % of Sales Mature Hospitals Developing Hospitals 81% 80% 94% 94% 20% 21% 30% 30% 13% 13% 6% 7% 23% 21% 19% 18% 24% 24% 29% 28% 21% 21% 15% 17% 2016 2017 2016 2017 Material Doctor Personnel Rent Other Material Doctor Personnel Rent Other 32
Slide 33: Reconciliation from Contribution to Adjusted EBITDA
Reconciliation from Contribution to Adjusted EBITDA TLm 2016A 2017A Hospital Contribution Mature 319 392 Developing 18 27 A Total Hospital Contribution 337 418 Other Ancillary Business Contribution¹ Other Ancillary Business Revenues 133 185 Other Ancillary Business Costs (114) (149) B Total Other An
Slide 34: IR Contact
IR Contact Dr. Deniz Can Yücel Head of Investor Relations T +90 212 227 5555 (Ext: 1148) E deniz.yucel@mlpcare.com 34