Med Life Sa · BVB:M
Med Life Sa — Investor Presentation (April 2024)
46 slides from Med Life Sa's investor presentation, April 2024
Slide 1: MedLife Group
hyper clinics | hospitals | maternities | laboratories | excellence centers | pharmacies MedLife Group April 2024 www.medlife.ro / www.medlifeinternational.com
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of Med Life SA’s securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy Med Life SA’s securities. Neither this presentat
Slide 3: MedLife at a glance
MedLife at a glance • Leading private healthcare provider in Romania and one of the largest players in CEE. • Balanced and highly synergic business model, with 6 mutually reinforcing business lines and 2 distinct brands (MedLife and Sfânta Maria) that capture revenue from patients from all disposabl
Slide 4: Agenda
hyper clinics | hospitals | maternities | laboratories | excellence centers | pharmacies 1 • Our History • MedLife on BVB About • Selected Acquisitions • Shareholder Structure • Romanian Healthcare System • Corporate Governance Us • MedLife Medical System • 2023 Key Messages • MedLife on BVB • Outlo
Slide 5: About Us
About Us • Our History • Selected Acquisitions • Romanian Healthcare System • MedLife Medical System • Shareholder Structure • MedLife on BVB • Corporate Governance • 2023 Key Messages • Outlook 1
Slide 6: Our History
Our History SGAM, part of Group 2 important Pharma The 2 nd largest transactions are MedLife completes the st 1 MedLife Societe Generale, MedLife expands in acquisition is completed: a chain of acquisition of Nord hyperclinic is becomes shareholder MedLife shares Hungary, by completed: 6 pharmacies
Slide 7: Selected Acquisitions
Selected Acquisitions PDR Group in Brasov (83% ownership) - Genesys Grup in Arad (83% ownership) - Sama Medical Center (90% ownership) – outpatient units, Prima Medical (100% ownership) multidisciplinary hospital, outpatient multidisciplinary hospital, outpatient units day hospitalization and labs i
Slide 8: Romanian Healthcare System
Romanian Healthcare System • The Romanian health system is hospital-centric, with high bed capacity. Patients seeking timely care often bypass primary care facilities and go directly to hospitals. As a result, nearly half of all health financing goes towards inpatient care. Bypassing primary care is
Slide 9: Romanian Healthcare System
Romanian Healthcare System Health spending per capita in Romania remains the lowest among EU countries Source: OECD Health Statistics 2023 (data refer to 2021, except Malta (2020)). Note: The EU average is weighted. 9 1. About Us 2. Our Network 3. Financial Overview
Slide 10: Romanian Healthcare System
Romanian Healthcare System Romania spends less than the EU average in all areas Source: EC Romania Country Health Profile 2023 report, OECD Health Statistics 2023 (data refer to 2021). Notes: 1. Includes curative-rehabilitative care in hospital and other settings; 2. Includes only the outpatient mar
Slide 11: Romanian Healthcare System
Romanian Healthcare System Indicator 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f Healthcare Expenditure Trends, Historical Data & Forecasts Health spending, USDbn 13.426 13.565 15.573 17.104 18.056 19.514 21.550 23.653 25.558 Health spending, USDbn, % YoY 23.13 1.03 14.80 9.84 5.56 8.08 10.44
Slide 12: Household consumption to become main GDP growth driver
Household consumption to become main GDP growth driver GDP (real, y.o.y) GDP (real, s.a., q/q) Contributions to real GDP growth, demand side Annual 2021 2022 2023 2024e 2025e GDP real 5.7% 4.1% 2.1% 2.6% 3.9% CPI (y.o.y) 5.1% 13.7% 10.5% 5.5% 3.7% Private consumption 7.5% 5.8% 2.9% 3.1% 3.4% Source:
Slide 13: Wage evolution
Wage evolution Real wage growth (12mo average, %) Real wage growth (Jan-2000=100) Average wage vs EU average Nominal wage growth in Romania ERSTE Group Research reports. 13 1. About Us 2. Our Network 3. Financial Overview
Slide 14: Romanian Top Private Healthcare Providers
Romanian Top Private Healthcare Providers 2022 Revenues % Market Peers (EUR mn) Share* MedLife** 405 12% Regina Maria*** 325 9% Medicover**** 178 5% Sanador 124 4% TOTAL 1,031 30% * Private healthcare market at EUR 3.5 bn ** Pro-forma figures for MedLife Group. *** According to public data. ****Medi
Slide 15: MedLife Medical System
MedLife Medical System Founded in 1994, MedLife Group is the leading private healthcare provider in Romania*, assisting over time over 6 million unique patients. It operates the widest network of clinics, one of the largest networks of medical laboratories, mono and multidisciplinary hospitals and h
Slide 16: MedLife Medical System: Unique Revenue Capture Model
MedLife Medical System: Unique Revenue Capture Model Flow of Referrals Among Business Lines Hospitals Hyperclinics Maternities Clinics MedLife Dentistry ecosystem over Laboratories Stem Cells Pharmacies Bank 6 million unique patients 16 1. About Us 2. Our Network 3. Financial Overview
Slide 17: Shareholder structure
Shareholder structure % Share capital as at 31 December 2023 Largest shareholders (>5% ownership) 0.02% Name % share capital 6.34% Marcu Mihail 14.77% 10.41% 42.79% Cristescu Mihaela Gabriela 14.04% 14.04% NN Pilar II Pension Fund* 13.24% Marcu Nicolae 10.41% 14.77% Allianz Tiriac Pilar II Pension F
Slide 18: MedLife on BVB
MedLife on BVB 6.8 6.0 5.3 4.5 3.8 3.0 2.3 1.5 0.8 0.0 MedLife’s shares are traded on BVB since December 2016, in the Premium Category, under the symbol M. Analyst coverage Index inclusion BCR Caius Roa Rapanu BVB BET-XT | BETPlus | BET-TR | BET-XT-TR | BET-TRN | BET-XT-TRN | BET-BK | BET | ROTX BT
Slide 19: Corporate Governance
Corporate Governance Executive Team Mihai Marcu CEO Nicolae Marcu Dorin Preda Alina Irinoiu Radu Petrescu Mariana Brates Mirela Dogaru Larisa Chiriac Vera Firu Marius Petrila Chief Chief Chief Human Healthcare Procurement Commercial Medical Accounting IT Finance & Financial Resources & COO Director
Slide 20: 2023 Key messages
2023 Key messages • Growth trend on average of 25% YoY maintained since listing on the Bucharest Stock Exchange. • Continued robust organic growth of 12% in revenues, with sustained demand for medical services despite a less favorable macroeconomic environment. • Organic growth maintained in the fir
Slide 21: 2023, marked by good dynamics and sustained investments
2023, marked by good dynamics and sustained investments for the benefit of patients Focused mainly on the integration and consolidation of the new companies under MedLife umbrella. Repositioning of the Group’s business strategy, based on crisis resilient medical drivers aimed at strengthening the pe
Slide 22: Outlook 2024
Outlook 2024 We are confident that we set the foundation for a solid platform for growth and we anticipate an increased contribution from the early-stage investments and projects implemented so far. We will also continue to invest in technology and digitization, as we believe that the future of medi
Slide 23: Our Network
Our Network • MedLife Network • Hyperclinics & Clinics • Dentistry Centers • Hospitals • Maternities & Stem Cells Bank • Laboratories • Pharmacies 2
Slide 24: MedLife Network
MedLife Network Legend: Romania Hospitals Maternities Hyperclinics Hungary Pharmacies Dentistry Centers Laboratories Clinics No. 1 in Romania CEE expansion 24 1. About Us 2. Our Network 3. Financial Overview
Slide 25: Hyperclinics & Clinics
Hyperclinics & Clinics Hyperclinics Hyperclinics & Clinics • One stop shop concept pioneered by the Group in Romania - MedLife Hyperclinics include medical outpatient specialties, Dentistry providing in one single place, clinical Centers examinations and imaging. • Designed for larger urban areas, w
Slide 26: Dentistry Centers
Dentistry Centers Hyperclinics DENT ESTET by MedLife, the only dental & Clinics network in Romania specialized in orthodontic services by age segment: Dentistry • 17 medical units with 3 acquisitions Centers completed: Krondent in Brasov, Stomestet in Cluj and Oradent in Oradea. • Highly specialized
Slide 27: Hospitals
Hospitals Hyperclinics The largest network of private hospitals in & Clinics Romania, with more than 1.000 beds, and a wide range of medical and surgical specialties. Multidisciplinary Inpatient units Dentistry Centers • MedLife Genesys Hospital in Arad • MedLife PDR Hospital in Brasov • Lotus Hospi
Slide 28: Maternities & Stem Cells Bank
Maternities & Stem Cells Bank Hyperclinics & Clinics • MedLife Grivita Maternity is the 1st private maternity hospital in Bucharest accredited by UNICEF as Dentistry Centers Baby-Friendly Hospital. • Maternities have birth blocks consisting of natural delivery rooms Hospitals and cesarean delivery r
Slide 29: Laboratories
Laboratories • Largest network of private laboratories in Hyperclinics & Clinics Romania. • The laboratories are using the latest Abbott technologies. Dentistry Centers • Full range of tests performed from standard blood tests to complex genetic analysis. 2 • Partnership with laboratories in France
Slide 30: Pharmacies
Pharmacies Hyperclinics & Clinics • Own laboratory, where clients can Dentistry Centers benefit from specific products. • NHIH contracts for free and Hospitals subsidized prescriptions. • PharmaLife own laboratory & own brand of products: DoctorLife. Maternities • Pharmaceutical distribution: leadin
Slide 31: Financial Overview
Financial Overview • Sales Evolution • Business lines evolution: Sales and Traffic • EBITDA Evolution • Consolidated Statement of Profit and Loss • OPEX Evolution • Consolidated Statement of Financial Position & Debt Position • Consolidated Statement of Cash Flows • 2024 FY Consolidated Budget • Ann
Slide 32: Sales evolution
Sales evolution % share of Business line Category 2023 2022 % var. Total 2023 Sales Total Sales evolution YoY (RON mn) Revenue 831,236,066 616,685,378 34.8% 37.6% Clinics Visits 3,834,062 3,205,637 19.6% Average fee 216.8 192.4 12.7% Revenue 121,778,348 119,068,495 2.3% 5.5% Dentistry Visits 185,829
Slide 33: Business lines evolution: Sales and Traffic
Business lines evolution: Sales and Traffic Clinics Laboratories Dentistry Centers 900 3,834 4,500 8.5 186 300 9.0 140 176 200 800 4,000 7.4 154 3,206 8.0 120 180 700 3,500 250 6.3 7.0 160 600 3,000 100 5.0 140 2,280 200 6.0 500 2,500 89 120 1,815 80 5.0 400 831 2,000 150 100 258 4.0 60 119 122 617
Slide 34: EBITDA evolution
EBITDA evolution EBITDA evolution YoY (RON mn) Revenues & EBITDA (RON mn) 2,000 15.0% 1,500 13.7% 317 2,210 2,108 286 289 1,000 1,795 13.1% 247 212 500 247 289 317 0 2020 2021 2022 2023 2023 2022 2023 2023 Pro-forma Pro-forma Revenues EBITDA EBITDA margin EBITDA evolution QoQ 100.0 90.0 19.0% 80.0 1
Slide 35: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss IFRS RON figures. 35 1. About Us 2. Our Network 3. Financial Overview
Slide 36: OPEX evolution
OPEX evolution IFRS RON figures. 1. About Us 2. Our Network 3. Financial Overview 36
Slide 37: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position IFRS RON figures. 37 1. About Us 2. Our Network 3. Financial Overview
Slide 38: Debt Position
Debt Position IFRS RON figures. 38 1. About Us 2. Our Network 3. Financial Overview
Slide 39: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows IFRS RON figures. 39 1. About Us 2. Our Network 3. Financial Overview
Slide 40: 2024 FY Consolidated Budget
2024 FY Consolidated Budget RON figures. 40 / 40
Slide 41: Substantiation of the 2024 FY Consolidated Budget
Substantiation of the 2024 FY Consolidated Budget The Group’s financial performance is affected, was affected in the past and is expected to be affected in the future by a number of factors, such as: • Global and regional economic conditions, respectively the economic context at national and regiona
Slide 42: Substantiation of the 2024 FY Consolidated Budget
Substantiation of the 2024 FY Consolidated Budget The Group estimates that: • it will continue to capitalize on the medical units of the acquired companies in order to organically develop their operations and to align the acquired companies to a profitability level (EBITDA margin) similar to that of
Slide 43: Annexes – Consolidated Statement of Financial Position
Annexes – Consolidated Statement of Financial Position 12 months ended December 31, % var. 2023 2022 ASSETS Non-current Assets Goodwill 445,395,617 368,672,606 20.8% Intangible assets 118,906,011 100,192,265 18.7% Property, plant and equipment 1,101,015,115 828,501,060 32.9% Right-of-use asset 396,5
Slide 44: Annexes – Consolidated Statement of Comprehensive Income
Annexes – Consolidated Statement of Comprehensive Income 12 months ended December 31, % var. 2023 2022 Revenue from contracts with customers 2,210,435,349 1,795,432,748 23.1% Other operating income 11,300,635 14,118,061 -20.0% Operating Income 2,221,735,984 1,809,550,809 22.8% Consumable materials a
Slide 45: Annexes – Consolidated Statement of Cash Flows
Annexes – Consolidated Statement of Cash Flows 12 months ended December 31, 2023 2022 Profit before tax 4,299,484 49,557,301 Adjustments for Depreciation, amortization and impairment of fixed assets 197,390,915 152,410,751 Provisions for liabilities and charges 838,338 625,545 Interest revenue (3,42
Slide 46: Thank you!
Thank you!