Med Life SA · BVB:M
Med Life SA — Investor Presentation (2019)
29 slides from Med Life SA's investor presentation, 2019
Slide 1: Investors and Analysts Presentation
The Largest Ecosystem on the private healthcare market in Romania One of the largest private healthcare companies in Central and Eastern Europe Investors and Analysts Presentation
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 presentati
Slide 3: Contents
CONTENTS PAGE I. INTRODUCTION TO MEDLIFE ………… 4 A. KEY INVESTMENT HIGHLIGHTS ………… 5 B. HOW WE GREW ………… 7 C. MEDLIFE NETWORK ………… 10 D. BUSINESS OVERVIEW ………… 11 E. 2019 KEY EVENTS ………… 14 II. MARKET OVERVIEW ………… 15 III. GROUP FINANCIAL SNAPSHOT A. H1 2019 FINANCIAL RESULTS ………… 19 B. MISSION STATE
Slide 4: I. Introduction to MedLife
I. INTRODUCTION TO MEDLIFE Founded in 1996, MedLife is the leading private healthcare provider in Romania*. The Company operates the widest network of clinics, one of the largest networks of medical laboratories, general and specialised hospitals and it has the largest client database for Healthcare
Slide 5: A. Key Investment Highlights
A. KEY INVESTMENT HIGHLIGHTS ▪ Expected - highest growth of healthcare market in CEE with a 1 Romania – attractive & growing healthcare market CAGR for private healthcare of 9.6% over 2018 – 2023 ▪ Pro-Forma Sales 2018: RON 804 mln MedLife - the leading private healthcare operator in 2 Romania and o
Slide 6: Unique Revenue Capture Model - Flow of Referrals Among Business Lines
THE LARGEST ECOSYSTEM ON THE PRIVATE HEALTHCARE MARKET Unique Revenue Capture Model - Flow of Referrals Among Business Lines CLIENT BASE SOURCES OF MED LIFE BUSINESS PAYMENT LINES % of Total Sales H1 2019 Clinics 19% NHIH Clients paying out of pocket or covered by NHIH Laboratories Referrals Trust b
Slide 7: B. How We Grew
B. HOW WE GREW 2010 2016 1999 2004 MedLife crossed the country`s boarders and announced the first international transaction in Hungary Our own pharmacy chain is launched, PharmaLife MedLife develops a new business division, Stomatology, as well as the second brand, “Sfânta 1996 The first own The fir
Slide 8: Successful Track Record in Organic Growth and Acquisitions
SUCCESSFUL TRACK RECORD IN MANAGEMENT OF ORGANIC GROWTH AND ACQUISITIONS ORGANIC 2019 ACQUISTIONS LEGEND Hyperclinics Clinics Hospitals Pharmacies Laboratories Dental Clinics * data as at June 2019 M E D L I F E G R O U P I n v e s t o r s a n d A n a l y s t s P r e s e n t a t i o n | Page 8
Slide 9: National Footprint Captures Growth in All Regions
NATIONAL FOOTPRINT CAPTURES GROWTH IN ALL REGIONS HYPERCLINICS/CLINICS H O S P I TA L S L A B O R AT O R I E S & S P S 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 2 1 2 3 1 1 1 1 1 1 2 1 2 2 1 6 1 1 1 1 1 4 1 2 18 7 1 2 11 1 1 3 1 1 1 1 1 Legend: Day inpatient Inpatient Legend: Laboratories Sampling Point
Slide 10: C. MedLife Network
C. MEDLIFE NETWORK The two brands of MedLife Group - the only private medical Romanian service company that can use its synergies at national level to capture competitive advantages MEDLIFE BRAND NETWORK SFANTA MARIA BRAND NETWORK 20 Hyperclinics 39 Clinics 10 Clinics 10 Hospitals 25 Laboratories 8
Slide 11: D. Business Overview
D. BUSINESS OVERVIEW HEALTHCARE PREVENTION CLINICS HOSPITALS LABORATORIES PHARMACIES STOMATOLOGY PACKAGES (HPP) Mandatory Outpatient services Maternity, specialist Full range of tests Prescription, OTC Wide range of dental ALL KEY occupational health including Imagistics. and generalist facilities p
Slide 12: Business Segments: Hyperclinics and Clinics
BUSINESS SEGMENTS MEDLIFE: A PIONEER IN LARGE SCALE CLINICS AND LARGE SCALE HIGH-END LAB OPERATION • One stop shop concept - MedLife hyperclinics includes medical ambulatory specialties, providing in one single place: clinical examinations and imaging • Hyperclinics have over 20 medical offices and
Slide 13: Business Segments: Largest Operator of Private Hospitals
BUSINESS SEGMENTS MEDLIFE: LARGEST OPERATOR OF PRIVATE HOSPITALS* • MedLife hospitals cover a wide range of medical and surgical specializations, reuniting the best medical staff, with significant national and international expertise • 10 hospitals – 7 inpatient hospitals and 3 day inpatient. Life M
Slide 14: E. 2019 Key Events
E. 2019 KEY EVENTS ACQUISITIONS • 51% of the shares in RMC Group, Hungary (finalized in March 2019) • 65% of the shares in Badea Medica Center of Excellence in Cluj (finalized in May 2019) • Increase from 55% to 90% shares in Sama Group, Craiova • Increase from 80% to 83% shares in PDR Group, Brasov
Slide 15: Favourable Macroeconomic Environment
II. MARKET OVERVIEW FAVOURABLE MACROECONOMIC ENVIRONMENT • The Romanian economy expanded by 4.7% in H1 2019 as compared to H1 2018 and 4.1% YoY in 2018 (2017: 6.9%; 2016: 4.8%) as compared to EU which expanded by 1.9% YoY in 2018. According to European Commission forecasts, Romanian GDP is expected
Slide 16: Favourable Macroeconomic Environment
MARKET OVERVIEW FAVOURABLE MACROECONOMIC ENVIRONMENT CHANGE OF GDP PER INHABITANT IN PURCHASING POWER STANDARDS (PPS) IN RELATION TO THE EU-28 AVERAGE, 2007-2015 (percentage points difference between 2007 and 2015) Macroeconomic • Romania has increased with 5-15 Environment percentage points & even
Slide 17: Healthcare Market Assessment
MARKET OVERVIEW HEALTHCARE MARKET ASSESSMENT Value (EUR bn) and change (%) of the private healthcare market in Central Europe, 2015-2023 Private healthcare Because the development of private investment was market boosted by the recently introduced tax deductibility, Outpacing the rest of CE private
Slide 18: Healthcare Market Growth Fundamentals
MARKET OVERVIEW HEALTHCARE MARKET GROWTH FUNDAMENTALS The Romanian private healthcare industry has developed considerably over the Current health expenditure last few years. as percentage of GDP, 2015 Opportunities include: • A reduction in the levels of satisfaction of patients with public services
Slide 19: A. H1 2019 Financial Results
III. GROUP FINANCIAL SNAPSHOT A. H1 2019 FINANCIAL RESULTS Sales increased by : + 23.4% Pro-forma H1 2019 vs. IFRS H1 2018 SALES + 25.4% IFRS H1 2019 vs. IFRS H1 2018 + 15% like2like Improved margin: Before applying IFRS 16: 13% Pro-forma H1 2019 vs. 11.6% IFRS H1 2018 (fig_1 below) After applying I
Slide 20: H1 2019 Financial Results (Cont.)
H1 2019 FINANCIAL RESULTS (Cont.) Split of Pro-forma EBITDA between Owners of the Group / NCI for H1 2019: 10.6% - 89.4% to Group Owners 89.4% - 10.6% to NCI EBITDA Vs. - 88.3% to Group Owners for IFRS H1 2018 Pro-forma EBITDA to Group Owners - 11.7% to NCI for IFRS H1 2018 Pro-forma EBITDA to NCI I
Slide 21: H1 2019 Financial Results (Cont.)
H1 2019 FINANCIAL RESULTS (Cont.) Absolute value of Net Result increased by: Before applying IFRS 16: 150.4% Pro-forma H1 2019 vs. IFRS H1 2018 After applying IFRS 16: 130.2% Pro-forma H1 2019 vs. IFRS H1 2018 NET RESULT - Split of Net Result IFRS H1 2019, before applying IFRS 16: 69% Owners / 31% N
Slide 22: Consolidated Statement of Financial Position
H1 2019 FINANCIAL RESULTS (Cont.) Consolidated Statement of Financial Position IFRS 16 adjustments: 1. Right-of-use asset : 97,680,895 RON; 2. Lease liability (current and long term): 98,603,108 RON; 3. Deferred tax liability: 308,182 RON; and 4. Impact in net result: (1,230,395) RON. M E D L I F E
Slide 23: Consolidated Statement of Profit and Loss
H1 2019 FINANCIAL RESULTS (Cont.) Consolidated Statement of Profit and Loss IFRS 16 adjustments: 1. Rent: release of 18,461,436 RON from Rent expense; 2. Depreciation: additional 17,457,510 RON in Depreciation expense; 3. EBITDA: increase of 18,461,436 RON; 4. Financial result: additional 1,926,139
Slide 24: Consolidated Statement of Cash Flow
H1 2019 FINANCIAL RESULTS (Cont.) Consolidated Statement of Cash Flow M E D L I F E G R O U P I n v e s t o r s a n d A n a l y s t s P r e s e n t a t i o n | Page 24
Slide 25: OPEX Evolution
H1 2019 FINANCIAL RESULTS (Cont.) OPEX Evolution Note: The Group recorded a 1.1 p.p. decrease of Operating Expenses as % of Sales in H1 2019 as compared to H1 2018: A. 4.9 p.p. decrease of “Rent” as % of Sales, generated by first time adoption of IFRS 16; B. 1.1 p.p. increase of “Third parties and s
Slide 26: Key Operational Metrics for H1 2019
H1 2019 FINANCIAL RESULTS (Cont.) KEY OPERATIONAL METICS FOR H1 2019 M E D L I F E G R O U P I n v e s t o r s a n d A n a l y s t s P r e s e n t a t i o n | Page 26
Slide 27: B. Mission Statement & Evolution
B. MISSION STATEMENT & EVOLUTION 2016 IFRS 2017 IFRS 2018 Pro-forma IFRS Consistent track record of strong 502.9 mRON 623.2 mRON, increased by 24% 804 mRON, increased by 29% growth of Sales MedLife units as at 31 December MedLife units as at 31 December MedLife units as at 31 December through acquis
Slide 28: Mission Statement & Evolution (Cont.)
MISSION STATEMENT & EVOLUTION (Cont.) 2016 IFRS 2017 IFRS 2018 Pro-forma IFRS EBITDA evolution in 54.6 mRON 77.9 mRON, increased by 43% 103.4 mRON, increased by 32.7% absolute figures Sustainable and improved EBITDA 10.9% EBITDA margin 12.5% EBITDA margin 12.9% EBITDA margin margin M E D L I F E G R
Slide 29: Thank you!
Thank you! © Med Life