25 slides from Mlp Saglik Hizmetleri As Class B's earnings presentation, May 9, 2019
Slide 1: MLP Care Q1 2019 Presentation
MLP Care Q1 2019 Presentation 9 May 2019
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
Slide 3: Muharrem Usta, Chairman & CEO
Muharrem Usta Chairman & CEO 3
Slide 4: Executive Summary
Executive Summary Strong start to 2019 with a double digit revenue growth exceeding inflation • Revenue up 25%, while Revenue Incl. Managed Hospitals1 up 28% • Adj EBITDA2 up 20% while EBITDA excluding net one off items up 29% • Net Debt to Adj. EBITDA ratio came in at 2.6x • Successful ramp up of
Slide 5: The Largest Private Healthcare Service Provider in Turkey
The Largest Private Healthcare Service Provider in Turkey +2 +500 New Hospital New Beds in 2018 in 2018 17 Cities 20,000+ Staff 1 31 Hospitals +6,000 in Total Beds in Total 2,200+ Doctors ¹ Includes managed hospitals, full time and part-time staff 5
Slide 6: Revenue and EBITDA Growth Above Expectations
Revenue and EBITDA Growth Above Expectations Revenue Adj. EBITDA1 and EBITDA % 500,0 1200,0 450,020,00% 18.7% 20,0 18.0% 1000,0 16.1% 400,0 16.9% 13.8% 350,015,00% 800,0 15,0 300,0 3,132 250,0 933 600,0 10,00% 10,0 200,0 749 505 400,0 150,0 168 158 1,518 5,00% 140 5,00 100,0 200,0 210 50,0 - - 0,00%
Slide 7: Double Digit Growth in Majority of Payor Types
Double Digit Growth in Majority of Payor Types Revenue Breakdown by Payor Type – Q1 2019 Other 76% Revenue from PMI, Top-up & 10% Contracted Institutions grew Medical SSI by 38% in Q1 2019 Tourism 25% 11% Medical Tourism grew by 1% 79% in Q1 2019 79% SSI Insurance allows for a wide addressable
Slide 8: Top-up Insurance Market Continues to Grow and positively impacts MLP Care's revenues
Top-up Insurance Market Continues to Grow and positively impacts MLP Care’s revenues # of People With Insurance (PMI and Top-up) in Turkey – 000s Growth CAGR (2014-2018) (Q1 2018-Q1 2019) 3,144 3,022 3500,0 2,214 9.2% 2,671 13.2% 3000,0 2500,0 920 880 64 94.5% 597 2000,0 47.4% 1500,0 2,150 2,224 0.9
Slide 9: Medical Tourism Revenue Up 79% in Q1 2019
Medical Tourism Revenue Up 79% in Q1 2019 Medical Tourism Revenue (TLm) 45.2% 120 100 33.4% Diversified and Balanced 27 Geography. Patients comes from: 80 60 20 • Europe 35% 106 40 78.6% • Middle East and Africa 32% 59 20 • Former CIS and the rest 33% 0 Strong marketing through offices / Q1 2018
Slide 10: Burcu Öztürk, CFO
MLPCARE Burcu Oztiirk CFO 10
Slide 11: Revenue Up 25% in Q1 2019
Revenue Up 25% in Q1 2019 1 Revenue (TLm) EBITDA (TLm) 27.9% 29.4% 24.6% 20.5% 1.400 200 1.200 1.000 1,037 150 168 800 811 933 140 158 100 600 749 122 400 50 200 0 0 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Revenue growth including revenues of Managed Hospitals is 28% 1 Adj. EBITDA: EBITDA TFRS adjustments
Slide 12: Strong Growth in All Revenue Segments in Q1 2019
Strong Growth in All Revenue Segments in Q1 2019 Domestic Patient Medical Tourism Ancillary Business Revenues Revenues 82.3% 19.5% 15.1% 78.6% 76.4% 831 126 95 732 106 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Growth Continued in Q1 2019 Continued to Attract Foreign Strong Growth in Managed Patients i
Slide 13: Strong Improvement in Both ARPV and ARPP in Q1 2019
Strong Improvement in Both ARPV and ARPP in Q1 2019 Outpatient and Inpatient revenues made up 41% and 59% of total Domestic Hospital Business Revenues in Q1 2019. Outpatient Revenues (TLm) Inpatient Revenues (TLm) 550 500 16.6% 14.1% 500 450 400 18.4% 450 8.3% 350 (1.8%) 5.9% 400 31 300 5 48 22 25
Slide 14: Smart Cost Management Results in Profitability Growth
Smart Cost Management Results in Profitability Growth Cost of Service and G&A Expenses as a % of Revenues Material costs as a % of revenue Adj. EBITDA Margin 18.7% 18.0% increased due to the inflation adjustment of medicine and increase in share of laboratory services business revenues (with 6.9%
Slide 15: Continued to Deleverage Balance Sheet in Q1 2019
Continued to Deleverage Balance Sheet in Q1 2019 NET DEBT FX BASED NET DEBT (in EUR m) 2018 1 Q1 2019 1 250,0 EUR72m EUR60m 204 200,0 (TL437m) (TL378m) 150,0 35% 28% 100,0 72 Percentage 65% 72% 60 50,0 TL806m TL983m - Local Currency Local Currency 2017 2018 Q1 2019 Hard Currency Hard Currency Nomina
Slide 16: FX Position of Income Statement
FX Position of Income Statement Hard Hard Currency as % of TLm Q1 2019 Currency Total Revenues 30 Eylül Share of Medical Tourism Revenue in Domestic Hospital Revenue 732 - - Foreign Medical Tourism 106 106 11% 2018 Total Revenue Ancillary 95 - - increased to 11% in Total revenues 933 106 11% itibarı
Slide 17: Total Capex and Maintenance Capex Decreased
Total Capex and Maintenance Capex Decreased Maintenance Capex (TLm) Total Capex (TLm) Operating Cash Flow / EBITDA 68.5% 3.6% 13.8% 120,0 30,0 1.5% 120,0 15.4% 100,0 25,0 100,0 4.3% 27 80,0 96 20,0 80,0 103 15,0 60,0 60,0 10,0 14 40,0 40,0 5,0 20,0 40 20,0 - 26 - - Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1
Slide 18: Outlook & Prospects
Outlook & Prospects Muharrem Usta – Chairman & CEO 18
Slide 19: Outlook & Prospects
Outlook & Prospects We will use our available resources and increase efficiency in 2019. Our targets are: Operational targets Increasing contribution of Medical Tourism Accelerate the ramp-up of the new opened hospitals Enhance patient satisfaction Financial targets Deleveraging our balance
Slide 20: CARE
CARE
Slide 21: Closing Remarks
Closing Remarks Muharrem Usta – Chairman & CEO 21
Slide 22: 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/
Slide 23: Historical P&L Statements
Historical P&L Statements TLm Q1 2019 Q1 2018 Revenue 933 749 Cost of service (-) (756) (611) Gross profit 177 138 General administration expenses (-) (72) (60) Other income from operations 63 67 Other expenses from operations (-) (61) (49) Operating income 107 96 Income from investment operations 0
Slide 24: Historical Balance Sheet
Historical Balance Sheet Unaudited Audited TLm March 31, 2019 December 31, 2018 Cash and cash equivalents 371 223 Trade receivables 949 899 Inventory 83 80 Short term other assets 283 276 Current assets 1,686 1,479 Tangible and intangible fixed assets 1,293 1,305 Deferred tax assets 282 282 Long ter
Slide 25: Reconciliation from Reported EBITDA to Adjusted EBITDA
Reconciliation from Reported EBITDA to Adjusted EBITDA TLm Q1 2019 Q1 2018 Net profit / (loss) 3 2 Tax income from operations 8 (32) Depreciation and amortization of tangible and intangible fixed assets 52 44 Total interest expenses, net of interest income and gain on financial derivatives 87 120 Ne