Mlp Saglik Hizmetleri As Class B · BIST:MPARK

Mlp Saglik Hizmetleri As Class B — MLP Care — H1 2020 Earnings Presentation

31 slides from Mlp Saglik Hizmetleri As Class B's earnings presentation, Aug 14, 2020

  1. Slide 1: MLP Care H1 2020 Presentation

    MLP CARE H1 2020 PRESENTATION AUGUST 14TH, 2020 _MLPCARE K | ViWnosprrat

  2. 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

  3. Slide 3: Muharrem Usta, Chairman & CEO

    MUHARREM USTA CHAIRMAN & CEO MLPCARE MEDICALPARK | Lit/nosprtaL

  4. Slide 4: Snapshot of Pandemic in Turkey as of August 13th, 2020

    Snapshot of Pandemic in Turkey as of August 13th, 2020 Total Deaths 5,912 2.4% Fatality Number of Tests 5,521,880 Critical Cond. Patients in Population 84,316,812 647 Number of Cases 245,635 Recovered Patients 228,057 4

  5. Slide 5: At a Glance: MLP Care H1 2020 Financial Highlights

    At a Glance: MLP Care H1 2020 Financial Highlights Adj. EBITDA Revenue  All hospitals started accepting COVID-19 TL 1,738 TL 454 million patients in March 6% Growth million (Q2 2020: TL 219  Pandemic status of private hospitals (5%) Decrease million) revoked in June  Revenue growth despite the CO

  6. Slide 6: Outlook 2020

    Outlook 2020 Total Revenue Trend*  Total revenues have dropped significantly in April due to pandemic impact. As of May, «V» shape recovery trend has started. Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Domestic Revenue Trend*  Domestic revenues have dropped significantly in April due to due

  7. Slide 7: At a Glance: MLP Care Operational Highlights

    At a Glance: MLP Care Operational Highlights Two brands and one concept targeting three different price points with The largest hospital group in 29 Hospitals in consistently outstanding medical service Total Turkey quality Established in 1993, listed on BIST in 2018 ~18,000 Staff 1 ~5,900 Beds in T

  8. Slide 8: # of People with Top-up Insurance Exceeds 1.5 million

    # of People with Top-up Insurance Exceeds 1.5 million # of People with Top-up Insurance in Turkey 06.2020; 1,501 12.2019; 1,354 CAGR Growth 06.2019; 1,002 (2014-2018) (H1 2019 – H1 2020) 12.2018; 920 %84,0 %49,8 LTM Addition to Number of People with Top-up Insurance +499k Top-up LTM Top-up Addition

  9. Slide 9: Our Growth Strategy is Intact

    Our Growth Strategy is Intact MLP Care continues its asset light growth strategy Expanding in metropolitans through mid-large scale hospitals (min. 100 bed capacity) Quick EBITDA ramp-up through leveraging MLP Care’s resources (brand strength, operational know how, licensing, experienced physicians,

  10. Slide 10: A network of hospitals located strategically across Istanbul

    A network of hospitals located strategically across Istanbul VM Medical Park Maltepe Map of Istanbul Location: Maltepe / Istanbul Opening Date: December 2019 TOTAL CAPEX: 877k TL Key Statistics  20k sqm  135 bed capacity  60 policlinic rooms Hospitals with Medical Park Brand  7 operating rooms H

  11. Slide 11: Growth Opportunities in Ankara

    Growth Opportunities in Ankara Map of Ankara VM Medical Park Ankara Medical Park Ankara Location: Keçiören/ Ankara Opening Date: March 2020 Hospitals with Medical Park Brand TOTAL CAPEX: 204k TL Liv Hospital Hospitals with Liv Hospital Brand Ankara Key Statistics  19k sqm  94 bed capacity  27 pol

  12. Slide 12: Planned M&A in 2020 – 2021

    Planned M&A in 2020 – 2021 # of Hospitals Liv Hospital Gaziantep Liv Hospital İstanbul Target M&A’s (Planned) (Planned) 4 4 2 26 Medical Park Liv Hospital 2020-2021 Additions 2021-2022 Target M&A's Liv Hospital Location  Gaziantep  İstanbul  Metropolis Opening Date  ~ Q3-end 2020  ~ Q2 2021  2

  13. Slide 13: Accelerated Efforts for Digitalization After Pandemic

    Accelerated Efforts for Digitalization After Pandemic Robotic Process Automation (RPA) & Artificial Intelligence (AI) & DataLake GDPR (KVKK) • Crisis Process Management • Data Governance & Master Data Management • Data Lake • Risk Monitoring Marketing Finance & Accounting • SIM (Sağlık İzleme Merkez

  14. Slide 14: Workforce Utilization Management is Online

    Workforce Utilization Management is Online Full-Time Equivalent Personnel Revenue Generation Hospital Revenue Total Month-end Full-Time Equivalent of Workforce Patient Staisfaction  Planning working hours of employees per hospital  Tracking hospital revenue per employee  Cross checking the perfor

  15. Slide 15: Burcu Öztürk, CFO

    BURCU OZTURK CFO MLPCARE MEDICALPARK | Lit/nosprtaL

  16. Slide 16: Cost Management: Precautions Taken Regarding the COVID-19 Pandemic

    Precautions Taken Regarding the COVID-19 Pandemic Personnel Expenses Government’s Incentive of Short-time Work Program was utilized between Apr-20 – June-20. Doctor Costs Almost all doctor costs are variable. Revenue decline also decreased the doctor costs. Cost Management Rent discount negotiations

  17. Slide 17: Precautions Taken Regarding the COVID-19 Pandemic

    Precautions Taken Regarding the COVID-19 Pandemic Cash Preservation & Liquidity Management Responsible Leverage A long-term loan of TL 330 million was withdrawn (investment loan of TL 80 million and a Net Working Capital Facility of TL 250 million) with an attractive interest rate of TR LIBOR + 2.5%

  18. Slide 18: Revenue Decreased 5% in H1 2020 due to COVID-19 Impact

    Revenue Decreased 5% in H1 2020 due to COVID-19 Impact Revenue (TLm) (4.6%) 1,822 1,738 (14.6%) 889 759 Q2 2019 Q2 2020 H1 2019 H1 2020 Denotes decrease of Revenue vs. the same period of the last year 18

  19. Slide 19: Revenue Decreased 5% in H1 2020 due to COVID-19 Impact

    Revenue Decreased 5% in H1 2020 due to COVID-19 Impact H1 2020  Revenue from SSI was up by 19% in Q2 (30%) 2020 (SSI Insurance allows for a wide addressable market, which is c.98% of the (36%) 7% total population). 11% 8%  Revenue from PMI, Top-up & Contracted 30% Institutions decreased by 21% in

  20. Slide 20: Revenue Impacted by Movement and Travel Restrictions

    Revenue Impacted by Movement and Travel Restrictions Domestic Patient Medical Tourism Ancillary Business Revenues Revenues 4.2% (34.5%) (36.4%) (30.4%) (3.4%) 3.3% (69.1%) 135 124 1,479 (37.6%) (3.8%) (67.0%) 672 52 35 Q2 2020 H1 2020 Q2 2020 H1 2020 Q2 2020 H1 2020 Inpatient Revenue Growth Slow dow

  21. Slide 21: Strong Improvement in Both ARPV and ARPP in H1 2020

    Strong Improvement in Both ARPV and ARPP in H1 2020 Outpatient Revenues (TLm) Inpatient Revenues (TLm) (5.0%) 9.1% (27.9%) 30.2% 22.8% (21.1%) 256 (163) 133 (179) 583 926 553 848 H1 2019 Volume & Mix Price H1 2020 H1 2019 Volume & Mix Price H1 2020 Average Revenue Per Visit (ARPV) Average Revenue Pe

  22. Slide 22: EBITDA Up by 11% in Q2 2020 supported by prudent cost management

    EBITDA Up by 11% in Q2 2020 supported by prudent cost management EBITDA (TLm) 6.3% 2.0% 454 427 406 414 11.4% 6.0% 197 219 196 185 Q2 2019 1 Q2 2020 1 H1 2019 1 H1 2020 1 Q2 2019 2 Q2 2020 2 H1 2019 2 H1 2020 2 1 Adj. EBITDA: EBITDA TFRS adjustments that have no cash impact on relevant period and on

  23. Slide 23: Prudent Cost Management

    Prudent Cost Management Cost of Service and G&A Expenses as a % of Cost Saving Measures enables us to reach Revenues the Highest EBITDA Margin in recent Adj. EBITDA Margin 23.4% 26.1% periods  Material costs as a % of revenue declined in Q2 2020 0.8% due to decrease in the share of laboratory busin

  24. Slide 24: Debt Position in H1 2020

    Debt Position in H1 2020 FX BASED NET DEBT1 (in EUR m) NET DEBT H1 20201 EUR30m EUR19m 100 equivalent of equivalent of 90 FX Cash Balance FX Cash Balance 78 80 70 60 55 50 40 30 78 20 65 EUR12m of Subsequent 10 Libyan Collection - 66 Net Hard H1 2020 FMT Currency Debt Revenue (LTM) (in EUR) (in EUR)

  25. Slide 25: Total Capex Decreased, Operating Cash Flow Improved

    Total Capex Decreased, Operating Cash Flow Improved Maintenance Capex (TLm) Total Capex (TLm) Operating Cash Flow / EBITDA 78.9% 1.9% 4.5% 1.7% 100 3.3% 74.0% 359 33 80 30 82 60 316 40 57 20 - H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 % of Revenue % of Revenue % of EBITDA 25

  26. Slide 26: Q&A

    Q&A MLPCARE MEDICALPARK | Lit/nosprtaL

  27. Slide 27: Closing Remarks

    Closing Remarks MUHARREM USTA CHAIRMAN & CEO

  28. Slide 28: 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/

  29. Slide 29: Historical Balance Sheet

    Historical Balance Sheet Reviewed Reviewed Audited TLm June 30, 2020 June 30, 2019 December 31, 2019 Cash and cash equivalents 470 260 306 Trade receivables 1,080 981 991 Inventory 107 89 90 Short term other assets 392 269 335 Current assets 2,049 1,599 1,722 Tangible and intangible fixed assets 1,4

  30. Slide 30: Historical P&L Statements

    Historical P&L Statements H1 2020 H1 2019 Change (%) Q2 2020 Q2 2019 Change (%) TLm Revenue 1,738 1,822 (4.6%) 759 889 (14.6%) Cost of service (-) (1,351) (1,401) (3.6%) (601) (694) (13.5%) Gross profit 388 422 (8.1%) 159 195 (18.4%) General administration expenses (-) (113) (143) (21.3%) (39) (72)

  31. Slide 31: Reconciliation from Reported EBITDA to Adjusted EBITDA

    Reconciliation from Reported EBITDA to Adjusted EBITDA TLm H1 2020 H1 2019 Q2 2020 Q2 2019 Net profit / (loss) 39 (25) (22) 36 Tax (income) from operations 25 (3) (0) (13) Depreciation and amortization of tangible and intangible fixed assets 125 129 63 65 Total interest expenses/(income) and fair va

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