Mlp Saglik Hizmetleri As Class B · BIST:MPARK
Mlp Saglik Hizmetleri As Class B — MLP Care — Goldman Sachs 13th Annual CEEMEA One-on-One Conference 2021
37 slides from Mlp Saglik Hizmetleri As Class B's conference presentation, Nov 8, 2021
Slide 1: MLP Care Investor Presentation
MLP Care Investor Presentation Goldman Sachs 13th Annual CEEMEA One-on-One Conference November 8-9, 2021
Slide 2: MLP Care: The #1 Private Hospital Group in Turkey
MLP Care: The #1 Private Hospital Group in Turkey Two brands and one concept targeting three different price points with The largest hospital group in 30 Hospitals in consistently outstanding medical service Total Turkey quality Established in 1993, listed on BIST in 2018 ~18,000 Staff 1 ~6,000 Beds
Slide 3: Our Growth Strategy is Intact
Our Growth Strategy is Intact MLP Care continues its asset light growth strategy Growing our existing business by increasing capacity utilization at large hospitals Expanding in metropolitans through mid- large scale hospitals (min. 100 bed capacity) Quick EBITDA ramp-up through leveraging MLP Care’
Slide 4: Liv Hospital Brand Expands in İstanbul
Liv Hospital Brand Expands in İstanbul Map of Istanbul Liv Hospital VadIstanbul Hospitals with Medical Park Brand Location: Sarıyer / Istanbul Hospitals with Liv Hospital Brand Opening Date: May 2021 Key Statistics 37k sqm 125 bed capacity 76 policlinic rooms 7 operating rooms MLP Care hos
Slide 5: At a Glance: MLP Care Q3 2021 Financial Highlights
At a Glance: MLP Care Q3 2021 Financial Highlights Continued robust uptick in domestic (w/o fx impact) Adj. EBITDA patient revenues quarter-on-quarter and Revenue the accelerated recovery of foreign medical tourism revenues TL 1,498 m TL 396 m 39% Growth 42% Growth 9M 2021: 9M 2021: EBITDA impro
Slide 6: Strong Revenue Growth
Strong Revenue Growth Revenue (TLm) 43.6% 4,040 39.3% 2,814 1,498 1,075 Q3 2020 Q3 2021 9M 2020 9M 2021 Denotes growth of Revenue vs. the same period of the last year 6
Slide 7: Double Digit Growth in Multiple Revenue Segments
Double Digit Growth in Multiple Revenue Segments 9M 2021 (36%) 103% 3% Revenue from SSI was up by 23% in Q3 2021 (SSI Insurance allows for a wide addressable market, 11% 27% which is c.98% of the total population) 25% Self pay was up by 21% in Q3 2021 Revenue from PMI, Top-up & Contracted Inst
Slide 8: Number of People with Top-up Insurance
##of ofPeople Peoplewith withTop-up Top-upInsurance InsuranceOver Close2.2 tomillion 2.2 million # of People with Insurance in Turkey (in thousand) 2,453 2,192 4,645 2,332 1,640 3,972 Growth (9M 2020 – 9M 2021) 5.2% 33.6% 16.9% PMI Top-up PMI+Top-up # of People with Top-up Insurance in Turkey (in th
Slide 9: Significant Growth Potential of FMT Revenue
Significant Growth Potential of FMT Revenue Medical Tourism Revenue (USD m) TOP 10 FMT Revenue % by Department in 9M 2021 12.2% (36.7%) 68.6% 32.7% (42.3%) 37.4% 77 11% 10% 68 9% 7% 6% 59 57 5% 52 49 4% 3% 3% 2% 37 34 Plastic Surgery Hematology Hematology Orthopedics Ear-Nose-Throat General Surgery
Slide 10: Strong Domestic and FMT Revenue Growth Continued
Strong Domestic and FMT Revenue Growth Continued Domestic Patient Medical Tourism Ancillary Business Revenue Revenue 44.4% 103.1% (36.5%) 34.6% 126.8% 3,457 (14.6%) 460 122 207 58 1,232 Q3 2021 9M 2021 Q3 2021 9M 2021 Q3 2021 9M 2021 Domestic Revenue q-o-q Growth Accelerated Growth of Foreign Decrea
Slide 11: Continued Improvement in Average Prices
Continued Improvement in Average Prices Outpatient Revenues (TLm) Inpatient Revenues (TLm) 53.0% 38.9% 37.8% 28.5% 15.2% 10.5% 352 416 141 1,424 153 2,033 931 1,464 9M 2020 Volume & Mix Price 9M 2021 9M 2020 Volume & Mix Price 9M 2021 Average Revenue Per Visit (ARPV) Average Revenue Per Protocol (AR
Slide 12: EBITDA Growth on the Back of Strong Revenue Recovery
EBITDA Growth on the Back of Strong Revenue Recovery EBITDA1 (TLm) EBITDA2 (TLm) (w/o fx impact) 39.5% 48.5% 1,068 1,029 766 42.2% 26.0% 693 392 396 312 279 Q3 2020 1 Q3 2021 1 9M 2020 1 9M 2021 1 Q3 2020 2 Q3 2021 2 9M 20202 9M 2021 2 1 Adj. EBITDA: EBITDA TFRS adjustments that have no cash impact
Slide 13: Prudent Cost Management
Prudent Cost Management Cost of Service and G&A Expenses as a % of Revenues Cost Saving Measures enables us to reach the favourable EBITDA Margin Adj. EBITDA Margin 27.2% 26.4% Material costs as a % of revenue declined in 9M 2021 0.9% 0.9% due to decrease in the share of laboratory business which
Slide 14: Strong Net Profit Improvement
Strong Net Profit Improvement Net Profit (TLm) Net Profit (TLm) Allocated to Equity Holders of the Parent 315.3% 610.3% 215 165 224.4% 13 41 52 (4) 18 23 Q3 2020 Q3 2021 9M 2020 9M 2021 Q3 2020 Q3 2021 9M 2020 9M 2021 Denotes growth of Net Profit and Net Profit Allocated to Equity Holders of the Par
Slide 15: Net Debt Decreased
Net Debt Decreased FX BASED NET DEBT 1 (in EUR m) GROSS DEBT PERCENTAGE 2020 9M 2021 EUR30m EUR32m EUR23m equivalent of equivalent of equivalent of Cash Balance 676mTL Cash Balance 375mTL FX Cash FX Cash FX Cash Balance Balance Balance 15% 26% 74% 85% 65 51 Net Debt 2,117mTL Net Debt 1,967mTL (3) No
Slide 16: Improved Free Cash Flow and Operating Cash Flow
Improved Free Cash Flow and Operating Cash Flow Maintenance Capex (TLm) Total Capex (TLm) OCF/ EBITDA FCF/ EBITDA 102.6% 79.7% 2.6% 6.1% 89.8% 75.7% 1,09 1,096 851 2.0% 245 6 104 3.9% 688 580 56 108 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 % of Revenue % of Revenue % of EBITDA
Slide 17: Why Invest in MLP Care?
Why Invest in MLP Care? 1 Operates in the Attractive Turkish Healthcare Market 2 Clear Leader in Private Hospital Provision 3 Strong Brand Recognition and Unique Business Model 4 Clinical Excellence and World Class Service Offering 5 Superior Historical Financial Performance 6 Outstanding Platform f
Slide 18: 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 Populatio
Slide 19: Operates In The Attractive Turkish Healthcare Market
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 22% of beds, but provide 53% of complex surgeries. Number of Hospital Beds (’000) Nu
Slide 20: Operates In The Attractive Turkish Healthcare Market
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 21: 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 MLP Care network (# of hospitals and locations) National and local leader with a network covering the greatest number of cities
Slide 22: Clear Leader in Private Hospital Provision
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 23: Strong Brand Recognition And Unique Business Model
3 Strong Brand Recognition And Unique Business Model Addressing Multiple Price Points Two brands and one concept targeting three different price points with consistently outstanding medical service quality Overview and Positioning 30 Total Hospitals in Portfolio 6 Premium Premium segment 8 Premium m
Slide 24: 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 25: Clinical Excellence And World Class Service Offering
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 26: Superior Historical Financial Performance
5 Superior Historical Financial Performance EBITDA Growth > Net Sales Growth > CPI (Consumer Price Index) Net Sales (TLm) Adj. EBITDA1 (TLm) 18% 31% CAGR 2014-2020 CAGR 2014-2020 43% 33% 26% 21% 22% 19% 18% 18% 17% 20% 9% 16% 10% 8% 12% 12% 5% 9% 2015 2016 2017 2018 2019 2020 Net Sales Growth EBITDA
Slide 27: Outstanding Platform for Further Growth
6 Outstanding Platform for Further Growth Proven track record of greenfield expansions and M&A Total Hospitals 30 25 26 27 29 31 29 30 At Year End MLP Care has added on average c.400 beds p.a.1 Greenfield through greenfield projects since 2014 Multiple opportunities identified for expanding bed
Slide 28: Outstanding Platform for Further Growth
6 Outstanding Platform for Further Growth MLP Care has several avenues to continue its growth trajectory Top line growth via the Growth through favourable insurance scheme revenue diversification MLP Care has increased its market share in PMI (private medical insurance) Self-Pay share of total p
Slide 29: Appendix
Appendix Revenue Breakdown by Payor Type – 2020 Operating Cash Flow – 2020 Historical Financial Statements Capital, Shareholder Structure & Subsidiaries Key Historical Milestones 29
Slide 30: Revenue Diversification Through Growing Segments
Revenue Diversification Through Growing Segments 2016 2020 (13%) (22%) 7% 6% 21% 5% 8% 28% 16% 39% 23% 11% 34% SSI Self-pay PMI, Top-up & Medical Tourism Other 33% 13% Contr. Inst. Revenue from PMI, Top-up & Contracted Institutions grew by 11% in 2020 Medical Tourism declined by 22% in 2020 due
Slide 31: Operating Cash Flow and Free Cash Flow improved in 2020
Operating Cash Flow and Free Cash Flow improved in 2020 Operating Cash Flow / Adj. EBITDA Free Cash Flow 85.7% 79.6% 899 65.7% 733 663 490 332 50 2018 2019 2020 2018 2019 2020 % of EBITDA 31
Slide 32: Historical Balance Sheet
Historical Balance Sheet Unaudited Unaudited Audited TLm September 30, 2021 September 30, 2020 December 31, 2020 Cash and cash equivalents 676 492 375 Trade receivables 1,359 1,115 1,155 Inventory 122 112 113 Short term other assets 537 479 542 Current assets 2,694 2,198 2,185 Tangible and intangibl
Slide 33: Historical P&L Statements
Historical P&L Statements Unaudited Unaudited Unaudited Unaudited TLm 9M 2021 9M 2020 Change (%) Q3 2021 Q3 2020 Change (%) Revenues 4,040 2,814 43.6% 1,498 1,075 39.3% Cost of service (-) (2,969) (2,150) 38.1% (1,062) (799) 33.0% Gross profit 1,071 664 61.2% 435 277 57.4% General administration exp
Slide 34: Reconciliation from Reported EBITDA to Adjusted EBITDA
Reconciliation from Reported EBITDA to Adjusted EBITDA TLm 9M 2021 9M 2020 Q3 2021 Q3 2020 Net profit / (loss) 215 52 41 13 Tax (income) from operations 120 37 106 12 Depreciation and amortization of tangible and intangible fixed assets 238 188 84 62 Total interest expenses/(income) and fair value d
Slide 35: Capital, Shareholder Structure & Subsidiaries
Capital, Shareholder Structure* & Subsidiaries *Shareholding structure after public offering (excluding the 6,827k shares purchased by shareholders from publicly traded portion) Usta Group – Elbaşı Group Sancak İnşaat Turizm (Founders) Lightyear Healthcare Hujori Financieringen Nakliyat B.V. B.V. •
Slide 36: Key Historic Milestones
Key Historic Milestones • Dr. Usta, • MPARK • 1 hospital • Carlyle • 1 • TURKVEN • 1 hospital • Founders Dr. Adem Elbaşı acquired • 2 • 3 acquired opened in Stocks acquired in Muharrem and Sancak hospital Ankara 40% stake hospitals hospitals 53.35% Samsun starting Usta and Group co- opened in MLP op
Slide 37: Disclaimer and IR Contact
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
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