New Frontier Health Corporation
New Frontier Health — Q4 2020 Earnings Presentation
20 slides from New Frontier Health's earnings presentation, Apr 8, 2021
Slide 1: New Frontier Health Q4 2020 Results
1 1 New Frontier Health Q4 2020 Results Apr 8, 2021
Slide 2: Disclaimer: Forward-Looking Statements
2 2 Disclaimer Forward - Looking Statements This presentation includes “forward - looking statements” within the meaning of the “safe harbor” provisions of the Private Securi ties Litigation Reform Act of 1995. The actual results of New Frontier Health Corporation (the “Company”) may differ from the
Slide 3: Disclaimer: Non-IFRS Measures
3 3 Disclaimer Adjusted EBITDA (before IFRS 16 adoption), is calculated as net loss plus ( i ) depreciation and amortization, (ii) finance expense/(income), (iii) other gains or losses, (iv) other expenses (such as sha re based compensation), (v) provision for income taxes, as further adjusted for (
Slide 4: Table of Contents
4 4 Q4 2020 Business Highlights Going Private Proposal Update Appendix A - Additional Materials Table of Contents
Slide 5: Q4 2020 Business Highlights
5 5 Shanghai United Family Pudong Hospital Q4 2020 BUSINESS HIGHLIGHTS
Slide 6: 2020 Fiscal Year Operational and Financial Snapshot
6 6 Financial Snapshot Outpatient Visit - 17.3 % YoY 522 ,969 Visits Inpatient Admission - 19.5 % YoY Utilization Rate Compared to 38.3 % in 20 19 33.3 % Operational Snapshot Adjusted EBITDA (before IFRS 16 Adoption) 1 RMB 166 .7 mn Total Revenue - 7.7 % YoY RMB 2,260 .5 mn 8 ,699 Admissions 2020 F
Slide 7: Q4 2020 Operational and Financial Snapshot
7 7 Financial Snapshot Outpatient Visit - 5.3 % YoY 1.2 % QoQ 154,832 Visits Inpatient Admission - 18.5 % YoY 7.4 % QoQ Utilization Rate Compared to 40.1 % in 4Q19 34.8 % Operational Snapshot Adjusted EBITDA (before IFRS 16 Adoption) 1 RMB 90.5 mn Total Revenue 2.2 % YoY 4.4 % QoQ RMB 654.0 mn 2,374
Slide 8: Q4 Revenue Continued Recovering and Recorded Y-o-y Growth
8 Q4 Revenue Con tinued Recovering and Recorded Y - o - y Growth 43 55 69 74 82 65 89 101 106 61 71 79 84 87 83 93 96 64 78 80 82 391 429 405 434 435 477 437 462 302 382 446 466 654 431 640 549 604 577 562 627 507 18Q3 520 20Q4 20Q3 20Q2 20Q1 19Q4 628 470 19Q1 18Q4 19Q2 18Q1 19Q3 18Q2 18 20 23 Expan
Slide 9: Outpatient and Inpatient Volume by Segment
9 Outpatient and Inpatient Volume by Segment Outpatient Volume Inpatient Admission 521 291 378 392 446 361 405 489 476 1,575 561 514 581 616 528 614 616 451 450 428 489 1,612 1,597 1,686 1,687 1,789 1,598 1,850 1,244 1,204 1,293 1,409 2,056 2,175 2,604 2,210 2,594 2,430 2,148 2,096 20Q1 2,374 20Q4 1
Slide 10: ASP Increased in Q4 Due to Higher Acuity Procedures
10 ASP 1 Increased in Q 4 Due to Higher Acuity Procedures Outpatient ASP Inpatient ASP 19Q2 86,847 18Q3 20Q1 89,755 83,932 101,024 103,386 20Q4 79,807 18Q4 19Q1 18Q2 89,969 19Q3 96,599 20Q2 19Q4 81,965 20Q3 86,379 87,019 92,964 18Q1 19Q1 18Q3 2,267 18Q1 18Q4 2,608 2,390 2,226 18Q2 19Q2 20Q3 2,341 2,
Slide 11: Adjusted and Pro-forma Adjusted EBITDA
11 Adjusted and Pro - forma Adjusted EBITDA 1 Tier 1 Operating Assets Tier 2 Operating and Other Assets Expansion Assets Total 52.8 5.8 5.8 5.8 1.9 36.7 18Q4 20Q4 20Q2 19Q1 18Q1 54.0 18Q2 18Q3 - 67.7 30.9 19Q2 34.2 19Q3 58.6 50.5 25.7 19Q4 20Q1 20Q3 35.9 - 10.9 8.8 40.0 27.6 89.9 90.5 - 24.1 - 37.5
Slide 12: Building 1 Lease Expiration of Beijing United Family Hospital
12 12 Building 1 Lease Expiration of Beijing United Family Hospital Situation Overview and Plan for BJU Building 1 Lease Expiration The lease on Building 1 of the BJU campus started in 1995 and was renewed in 2016. The renewal expires on December 31, 2020, and an extension agreement has not yet
Slide 13: DTU Building Construction Completed and Target for Grand Opening
13 13 DTU 1 Building Construction Completed and Target for Grand Opening Level III accredited specialty hospital with over 25,000 sqm of area and 200 licensed beds Located near Beijing’s Olympic Village Completed the majority of its construction in 2020 Q4 Completion ceremony on March 27th,
Slide 14: Going Private Proposal Update
14 14 Shanghai United Family Hospital GOING PRIVATE PROPOSAL UPDATE
Slide 15: Preliminary Non-binding Going Private Proposal
15 15 Preliminary Non - binding “Going Private” Proposal A preliminary non - binding proposal letter by a group of investors (altogether “Buyer Group”) was raised to acquire all outstanding ordinary shares in a going - private transaction for US$12.00 per share in cash . The Proposed Transaction w
Slide 16: Appendix A – Additional Materials
16 16 APPENDIX A – ADDITIONAL MATERIALS
Slide 17: Operating Expenses
17 17 Operating Expenses 386.1 298.5 19Q4 20Q4 SWB 60% As % of Revenue 46% Salary, Wages & Benefits (in million RMB) 224.9 86.6 90.6 105.8 111.6 127.5 3.5 434.6 20Q4 4.0 324.8 0.3 19Q4 4.6 Supplies & Purchased Medical Service 1 Depreciation and Amortization 3 Lease & Rental 2 Bad Debt Expense 4 Othe
Slide 18: Strong Balance Sheet and Positive Free Cash Flow in Q4 20
18 Strong Balance Sheet and Positive Free Cash Flow in Q4 2020 Notes: 1. Adjusted operating cash flow is defined as cash generated for operating activities less capital lease payments, adding back i nte rest expense and one - off transaction related costs. See slide 41 for detailed reconciliation 2.
Slide 19: Strong Cash Flow and Balance Sheet
19 Strong Cash Flow and Balance Sheet Notes: 1. Due to IFRS 16 adoption, capital lease payments is categorized as cash used for financing activities. 2. Maintenance capex is defined as all capex spent for existing operations of the facilities. 3. Expansionary capex is defined as capex spent for buil
Slide 20: Reconciliation of Non-IFRS Financial Measures
20 20 Reconciliation of Non - IFRS Financial Measures Notes: 1. Monitoring fee payable to TPG and Fosun is not related to business operation and is discontinued from 2020 onwards . 2. Management believes reviewing the Company’s operating results for the three months and year ended December 31, 2019