Integrated Diagnostics Holdings Plc · LSE:IDHC
Integrated Diagnostics — Q1 2025 Earnings Presentation
65 slides from Integrated Diagnostics's earnings presentation, June 2025
Slide 1: IDH Results Presentation
IDH Results Presentation June 2025
Slide 2: Table of Contents
Table of Contents IDH At a Glance Q1 2025 Results Overview Key Investment Highlights Our Market Our Business Model Financial Position and Performance Growth Strategies Leadership and Governance 2 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 3: Who We Are (I/II)
Who We Are (I/II) Integrated Diagnostics Holding is a leading, fully-integrated provider of high-quality medical diagnostic services with a footprint spanning Egypt, Jordan, Nigeria, Saudi Arabia, and Sudan An integrated diagnostics provider… Pathology Radiology Immunology Microbiology Haematology E
Slide 4: Who We Are (II/II)
Who We Are (II/II) The Company’s reach, scale, and service quality are unmatched across its markets of operation Track Record Accreditations +40 years CAP & ACR Accredited lab and scan First lab established in 1979 Jordan Patients Test Portfolio 8.9 MN +3,000 Egypt In FY 2024 (+5% y-o-y) Tests Saudi
Slide 5: Our Service Segments
Our Service Segments IDH’s pathology offering currently contributes the majority of revenue at 95%. The Company’s radiology services continue to grow in contribution with revenue posting a 28% year-on-year growth in Q1 2025. Pathology – 95% of Revenues1 Radiology – 5% of Revenues1,2 Through IDH’s br
Slide 6: Our Geographies
Our Geographies IDH currently operates the largest branch network amongst private providers in Egypt and boasts an established presence in four key markets in the Middle East and Africa Egypt Jordan Nigeria Saudi Arabia +54 +32% 26 +2% 12 +39% 2 SAR 0.8mn New branches vs. y-o-y revenue growth Branch
Slide 7: Our Patients
Our Patients IDH serves two principal types of patients: contract and walk-in Around 64% of total revenue generated across the two segments is paid in cash Contract Patients1 Walk-In Patients IDH’s contract clients include institutions who enter into one-year IDH’s walk-in clients, also referred to
Slide 8: Q1 2025 Results Overview
Q1 2025 Results Overview 8 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 9: Operating Environment (I/II)
Operating Environment (I/II) As expected, across both Egypt and Nigeria, the start of the new year brought sharp declines in inflation rates partially reflecting the high base effect from the record-highs seen this time last year. The EGP has progressively strengthened in recent weeks after Inflatio
Slide 10: Operating Environment (II/II)
Operating Environment (II/II) IDH’s presence in two strong regional economies, Saudi Arabia and Jordan, enhances its position and provides a strategic advantage by anchoring growth in stable markets. Largely stable inflation in KSA over the past year Declining inflation in Jordan Inflation rate| % I
Slide 11: A Strong Start to 2025 (I/II)
A Strong Start to 2025 (I/II) IDH built on a record-breaking 2024 performance to deliver another strong set of financial and operational results despite the full impact of Ramadan being capture in its Q1 performance. EGP 1.6 bn EGP 631 mn EGP 498 bn EGP 245 mn Revenue in Q1 2025 Gross Profit in Q1 2
Slide 12: A Strong Start to 2025 (II/II)
A Strong Start to 2025 (II/II) The expected Ramadan-link slowdown in patient traffic was more than offset by IDH’s strategic price adjustments introduced at the start of the year. Meanwhile, tests per patient continued to grow to a new record-high in Q1 2025. Robust top-line growth… …supported by st
Slide 13: Segment Performance (I/II)
Segment Performance (I/II) Both IDH’s contract and walk-in segments continue to see revenue growth in the first quarter of the new year supported primarily by the Group’s strategic price increases introduced at the start of the year. Walk-in Segment Contract Segment Total 1Q24 1Q25 Change 1Q24 1Q25
Slide 14: Segment Performance (II/II)
Segment Performance (II/II) IDH’s contract segment maintained its growth trend, remaining the major contributor to overall revenue and patient volumes in Q1 2025 Revenue Split Patient Split 19% 20% 34% 32% Q1 Q1 Q1 Q1 2024 2025 2024 2025 66% 68% 81% 80% Walk-in Contract Walk-in Contract Walk-in Cont
Slide 15: Regional Performance (I/II)
Regional Performance (I/II) IDH recorded strong revenue growth across its entire footprint during the first quarter of 2025. In Nigeria, IDH’s turnaround strategy delivered results, with Echo-Lab turning EBITDA positive. Revenue |M-EGP| Gross Profit |M-EGP| EBITDA |M-EGP| +32% +44% +40% EGYPT 82.7%
Slide 16: Regional Performance (II/II)
Regional Performance (II/II) Patients |‘000| Tests |‘000| Test per Patient |‘000| Revenue per Test |EGP| -8% -3% +6% +37% EGYPT 8,059 7,815 168 1,923 1,765 4.2 4.4 123 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 +1% +16% +16% +22% JORDAN 85 85 566 658 6.7 7.7 292 356 Q1 2024 Q1 2
Slide 17: Regional Performance: Local Currency
Regional Performance: Local Currency Revenue | M-LCY Gross Profit | M-LCY EBITDA | M-LCY ▲32% 1,310 ▲40% 449 EGYPT 989 574 400 ▲44% 320 44% 32% 34% 40% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 3.3 0.9 0.9 0.9 3.2 0.8 JORDAN ▲3% ▲2% ▲15% 27% 27% 24% 26% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024
Slide 18: Continued Ramp up at Al Borg Scan (I/II)
Continued Ramp up at Al Borg Scan (I/II) Al Borg Scan continued to post revenue growth despite the anticipated Ramadan slowdown weighing on results for the quarter. EGP 56 MN 29% 14% 15% 12% Q1 2025 revenues Q1 2025 revenue contribution Q1 2025 revenue contribution Q1 2025 revenue contribution Q1 20
Slide 19: Continued Ramp up at Al Borg Scan (II/II)
Continued Ramp up at Al Borg Scan (II/II) During the quarter, Al-Borg Scan continued to grow year-on-year despite volumes temporarily declining as the anticipated Ramadan slowdown weighed on patient traffic. Volumes are set to return to growth in the spring and summer months. Revenues Evolution (EGP
Slide 20: Echo-Lab (Nigeria)
Echo-Lab (Nigeria) Echo-lab turned EBITDA positive in Q1 2025 displaying the efficacy of IDH’s new turnaround plan rolled out in 2024. Monthly Revenue June 2021 to March 2025 | NGN million 293 275 272 248 253 241 242 244 235 205 206 222 219 181 212 166 164 167 168 172 166 169 173 162 192 153 156 156
Slide 21: KSA Ramp-up
KSA Ramp-up KSA’s ramp-up set to accelerate throughout 2025 as IDH leverages increased effective ownership in Biolab KSA. Results continued to grow quarter-on-quarter in Q1 2025 despite slowdown linked to Ramadan weighing on March’s results. Revenues Evolution (EGP ‘000) 11,033 8,306 5,815 ▲ 33% 3,5
Slide 22: Q1 2025 Profitability Overview (I/II)
Q1 2025 Profitability Overview (I/II) Effective cost control measures supported margin expansions at all levels of profitability when normalising for FX gains booked in both periods. Gross Profit, Margin EBITDA, Margin Net Profit, Margin Adjusted Net Profit,1 | EGP mn, % | EGP mn, % | EGP mn, % Marg
Slide 23: Q1 2025 Profitability Overview (II/II)
Q1 2025 Profitability Overview (II/II) Comprehensive cost optimisation efforts have supported profitability improvements at both the gross and EBITDA levels during the first quarter of the year. IDH's proactive inventory management and robust supplier Thanks to its headcount optimization efforts, th
Slide 24: Revenue – EBITDA Bridge
Revenue – EBITDA Bridge Q1 2025 IDH Revenue - EBITDA Bridge | EGP mn 1,583 (308) (441) (2) (35) (21) (15) (43) 498 (220) 19% 28% 0.1% 2% 1% 1% 3% 14% 31% Revenue Raw Material Salaries Rent Transport. Maintenance Utilities Advertising Other EBITDA Q1 2024 IDH Revenue - EBITDA Bridge | EGP mn 1,171 (2
Slide 25: Adjusted Net Profit expanded 114% Q1 2025
Adjusted Net Profit expanded 114% Q1 2025 Q1 2025 IDH EBITDA – Net Profit Bridge | EGP mn 498 31 54 (5) (48) (133) 245 (152) Controlling for FOREX gains in Q1 2025, NP would have grown 114% y-o-y with a NPM of 14% vs 9% in Q1 2024. EBITDA Dep. & Amort. Finance Income FX FVTPL Finance Expenses Tax Ne
Slide 26: Robust Financial Position
Robust Financial Position Improving Cash Conversion Cycle Net receivables DOH continued to decline CCC | Days AR, DOH | EGP mn, days 134 141 146 149 140 126 195 196 178 753 806 804 863 155 155 703 123 570 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 DOH Increas
Slide 27: Q1 2025 Capital Expenditure
Q1 2025 Capital Expenditure IDH CAPEX recorded EGP 56 mn in Q1 2025, including both, core recurring CAPEX items and non-recurring CAPEX related to the expansion of Al-Borg Scan’s network. This figure represented 3.6% of Q1 2025 revenues. 3.0% 0.5% 0.01% 0.1% % of Group New Branches & Warehouse IDH H
Slide 28: Fixed Gross Assets Bridge
Fixed Gross Assets Bridge IDH Fixed Gross Assets Bridge by Account | M-EGP 35.3 1.8 0.3 3,168 (1.4) 8.4 4.5 3,111 0.2 7.5 EGP 57 mn 3.6% of total Q1 2025 revenue Balance 31/12/2024 IDH Headquarter WAREHOUSE Mega Lab New branches Renovation Al-Borg Scan Wayak Pharmacy Translation Balance 31/3/25 IDH
Slide 29: Outlook and Strategies (I/II)
Outlook and Strategies (I/II) In IDH’s home and largest market of Egypt, the Company’s priorities for the coming months remain unchanged. The fading of the Ramadan-linked traffic slowdown combined with declining inflation is expected to support volume growth in 2025. Pricing Volumes Raw Materials Co
Slide 30: Outlook and Strategies (II/II)
Outlook and Strategies (II/II) In 2025, the Group’s focus will remain on executing its Saudi ramp-up strategy, leveraging its expanded ownership stake to accelerate growth. In Jordan and Nigeria, areas of focus remain unchanged as the Group looks to drive volumes up and boost profitability. Jordan –
Slide 31: Investment Highlights
Investment Highlights 31 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 32: Investment Highlights
Investment Highlights IDH is an attractive investment opportunity with compelling fundamentals, present in fast- growing, under-served markets 1 Operating in highly fragmented markets characterised by strong structural growth drivers and high barriers to entry ✓ Deploys an asset-light business model
Slide 33: Fast-Growing, Underserved Markets
Fast-Growing, Underserved Markets 33 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 34: Favorable Industry Dynamics
Favorable Industry Dynamics IDH’s home market of Egypt is underpinned by robust structural growth drivers Lab tests per capita (2023) High Disease Burden Operating in a still under- 23.2 penetrated market The Egyptian population is marked by a high incidence of lifestyle- related medical conditions,
Slide 35: Favorable Industry Dynamics
Favorable Industry Dynamics IDH’s markets are characterised by high barriers to entry Economies of Scale Accreditation of Brand & Reputation Market Reach Key Stakeholder Facilities Relationships IT-enabled platform, Attracting patients Patients are loyal to Fragmented markets Building a scalable cri
Slide 36: IDH is a Consumer-Facing Service Provider
IDH is a Consumer-Facing Service Provider The mechanics of healthcare markets in developing economies are markedly different from those in many Western healthcare industries IDH serves the private healthcare A hospital outpatient clinic or Perceived quality and safety market, where notably patients
Slide 37: Scalable Business Model
Scalable Business Model 37 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 38: Asset-light Business Model
Asset-light Business Model 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’s diagnostic “Hub,” e
Slide 39: Our Mega Lab
Our Mega Lab IDH’s Mega Lab is the only CAP-accredited facility in Egypt, demonstrating the excellence of IDH’s patient care and confidence in the laboratory’s practices Capabilities Capacity • Mega Lab machines are capable of conducting a wide range of tests. • IDH’s Mega Lab doubled testing capaci
Slide 40: Key Supplier Relationships
Key Supplier Relationships IDH leverages its bargaining power with suppliers to maximize value in a business that is fundamentally about economies of scale. Combined with the long-tenure nature of its supplier contracts, this provides significant protection against short-term price fluctuations. Dyn
Slide 41: Strong Growth and Financial Position
Strong Growth and Financial Position 41 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 42: Key Financial Performance Indicators
Key Financial Performance Indicators Since the Company’s IPO on the LSE in 2015, IDH has delivered consistent top- and bottom-line growth supported by a steady increase in volumes and strategic price increases across the Group’s service offering Revenues | EGP mn - CAGR Gross Profit, GPM | EGP mn, %
Slide 43: Regional Performance (I/II)
Regional Performance (I/II) Across its footprint, the Company deploys tailored expansion strategies which enable it to continue driving growth irrespective of the prevailing macroeconomic environment Revenue |M-EGP| Adjusted EBITDA |M-EGP| CAGR: 21% CAGR: 16% EGYPT 4,108 4,718 2,206 EGYPT 1,613 1,90
Slide 44: Regional Performance (II/II)
Regional Performance (II/II) IDH’s growing and increasingly attractive offering has enabled the Group to drive sustained volume expansion across its footprint. Similar strategies are being deployed in Saudi Arabia to ensure the rapid ramp up of the venture. Patients | ‘000 Tests | ‘000 CAGR: 5% CAGR
Slide 45: Growth Strategies
Growth Strategies 45 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 46: Future Growth Strategies
Future Growth Strategies IDH’s growth strategies rely on leveraging its competitive advantages to achieve four strategic goals Expand Customer Reach Expand Geographically Beyond opening laboratories in new In addition to organic expansion, the Company geographies, IDH is reaching out to new continue
Slide 47: Expanding Customer Reach – Growing In Egypt
Expanding Customer Reach – Growing In Egypt The Group enjoys ample growth room in Egypt thanks to its market leading position and extensive reach, attractive underlying fundamentals, and favourable regulatory environment Reach and penetration Solid Fundamentals Universal Healthcare Act New growth op
Slide 48: Diversifying Service Offering – Al Borg Scan Ramp-Up
Diversifying Service Offering – Al Borg Scan Ramp-Up IDH’s radiology venture, Al Borg Scan, continues expanding its top line on the back of increased test volumes and average revenue per test 2018 7 branches EGP 607mn 836k Covering Cairo from East to West Revenue Scans Performed Fastest growing chai
Slide 49: Diversifying Service Offering – Al Borg Scan Expansion Updates
Diversifying Service Offering – Al Borg Scan Expansion Updates Al Borg Scan operates seven branches, one of which was inaugurated in 2023. The Group also recently earned the prestigious ACR (American College of Radiology) accreditation for Al Borg Scan’s Nuclear Medicine and ultrasound units. Ration
Slide 50: Al Borg Scan Maintains Growth Trajectory
Al Borg Scan Maintains Growth Trajectory IDH’s Egyptian radiology venture, Al Borg Scan, continues expanding its top-line and expanding its contribution to Egypt revenues, driven by sustained increases in test volumes and higher revenue per test Revenue | EGP mn Scans Performed | ‘000 Patients Serve
Slide 51: House Call Services (Egypt and Jordan)
House Call Services (Egypt and Jordan) IDH’s house call services, offered in both Egypt and Jordan, is becoming a primary contributor to top-line, averaging 16% compared to a pre-pandemic contribution of 9% House call services witnessed rising demand during the Covid-19 pandemic Expands Reach Fee-Ba
Slide 52: Expanding Customer Reach – State-sponsored Initiatives
Expanding Customer Reach – State-sponsored Initiatives 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 Revenue Generated 8 months EGP 84 mn Nov ‘18 – Jun ‘19
Slide 53: Expanding Customer Reach – IDH Awareness Campaigns
Expanding Customer Reach – IDH Awareness Campaigns 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’s PCR Offers and Campaigns Discounts on PCR PCR testing for testing for
Slide 54: Diversifying Service Offering – New Investment in Wayak
Diversifying Service Offering – 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 On
Slide 55: Growing Geographic Footprint– Investment Rationale
Growing Geographic Footprint– Investment Rationale IDH’s regional expansion strategy targets acquisitions in African, Middle Eastern and Asian markets where it can deploy its proven business model and generate accretive value Growing economies and strong Similar healthcare market structure to demogr
Slide 56: Growing Geographic Footprint – Nigeria Expansion
Growing Geographic Footprint – 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 57: 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 57 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 58: Growing Geographic Footprint – KSA Expansion
Growing Geographic Footprint – KSA Expansion In October 2022, IDH and Biolab signed a JV agreement with Izhoor, a company owned by Fawaz Alhokair, to launch a full-fledged pathology diagnostic services provider in Saudi Arabia. In December 2024, IDH purchased Izhoor’s full stake in the new venture,
Slide 59: Strong Leadership & Governance
Strong Leadership & Governance 59 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 60: Governance
Governance A World-Class Board of Directors The majority of members of IDH’s Board of Directors are non-executive and offer significant experience in the healthcare market, MENA region and investment activities Lord St John of Bletso 1 Prof. Dr. Hend El Sherbini Sherif El Zeiny Non-Executive Chairma
Slide 61: Governance
Governance IDH is committed to implementing best practices in corporate governance through the expertise of both the individual Directors and outside parties Anti-Bribery and Anti Corruption Internal Audit Procedures While not required to comply with UK Policy (ABAC) Corporate Governance Code, IDH a
Slide 62: 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 63: Appendix
Appendix 63 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 64: IDH Development Story
IDH Development Story Over 40 years of industry experience, complemented by strategic expansion to develop a strong market position across products and geographies. Today IDH has built a scalable platform that is positioned for further strong growth 1979 1990 2008 2011 2012 2013-14 Establishment of
Slide 65: IDH
INTEGRATED DIAGNOSTICS HOLDINGS IDH
Integrated Diagnostics Holdings — Q1 2025 Earnings Presentation on 6ix