Ump Healthcare Holdings Limited · HKEX:722
Ump Healthcare — FY2021 Earnings Presentation
46 slides from Ump Healthcare's earnings presentation, Sep 24, 2021
Slide 1: FY21 Annual Results Presentation
UMP Healthcare Holdings Limited FY21 Annual Results Presentation 24 September 2021 Hong Kong | Macau | Beijing | Shanghai | Guangzhou | Shenzhen | Zhuhai | Zhongshan | Dongguan | Tianjin | Foshan 香港 | 澳門 | 北京 | 上海 | 廣州 | 深圳 | 珠海 | 中山 | 東莞 | 天津 | 佛山
Slide 2: Disclaimer
Disclaimer This Presentation has been prepared by UMP Healthcare Holdings Limited (“Company” or the “Group”). does not constitute (i) an offer or invitation for the sale or purchase of the securities, assets or business described herein. This Presentation shall not form the basis of any contract, co
Slide 3: Presenters
PRESENTERS Dr. SUN Yiu Kwong Ms. Jacquen KWOK Mr. Felix LEE Mr. Danny HO UMP Group Executive UMP Group Executive UMP Group Executive UMP Group Chief Financial Director, Chairman and CEO Director, Managing Director Director, President and CEO Officer, SVP and CFO for for Hong Kong & Macau for UMP Mai
Slide 4: Performance Drivers
Performance Drivers
Slide 5: Sustained Performance Growth with Record Turnover and Adjusted EBITDA in 2021
SUSTAINED PERFORMANCE GROWTH WITH RECORD TURNOVER AND ADJUSTED EBITDA IN 2021 Approx. Turnover EBITDA Adjusted EBITDA Achievements Solid sales and record adjusted EBITDA 2021 +12% -14% +30% amidst challenging environment Resilient performance 2020 -2% +197% -12% in face of Covid Strong turnover and
Slide 6: Sustained Performance Growth with Extensive Service Points and Broad Client Networks
SUSTAINED PERFORMANCE GROWTH WITH EXTENSIVE SERVICE POINTS AND BROAD CLIENT NETWORKS AFFORDABLE ACCESSIBILE TRUSTED Hong Kong & Macau 1,076,682 1,038,317 1,100+ Patient Visits Average Policy Total Service Points -16% members serviced - 4% Mainland China 47,983 127,071 1,252 158 Patient interactions
Slide 7: FY21 Operational Milestones
FY21 Operational Milestones
Slide 8: Our Presence in Hong Kong and Macau
OUR PRESENCE IN HONG KONG AND MACAU Hong Kong Macau Service Providers Service Providers General 526 105 Practitioners Medical Specialists 226 17 Dentists 45 37 Traditional Chinese Medicine Practitioners 44 22 Physiotherapists 41 2 Hong Kong Macau Head Quarter in Central Lab & Imaging 53 5 centres To
Slide 9: Hong Kong Major Events and Milestones
HONG KONG MAJOR EVENTS AND MILESTONES: AN EVENTFUL YEAR AS WE CONTINUED TO BUILD OUR PLATFORM IN SUPPORT OF OUR FUTURE AMIBITIONS 02 - PET-CT Centre 04 - Flash Mover MRI Centre acquisition 06 - Repositioned to GBA 08 - ESS AI GRANT Our investment in ACTON We acquired further 75% interests in an MRI
Slide 10: Hong Kong Business Initiatives and Growth Strategy: One-Stop Medical Care Platform
HONG KONG BUSINESS INITIATIVES AND GROWTH STRATEGY ONE-STOP MEDICAL CARE PLATFORM UMP now occupies three full floors in Central Mid FY2021 & before Mid FY2021 & after Expanded from gross floor area of 16,000 sq. ft. to 38,000 sq. ft. 27/F Enlarged Head Quarter • Central administration hub at 27/F 27
Slide 11: Multi-Purpose Practice Platform 16/F
HONG KONG BUSINESS INITIATIVES AND GROWTH STRATEGY MULTI-PURPOSE PRACTICE PLATFORM 16/F Multi-Purpose Practice Platform • To provide various specialists services for diagnosing and treating different diseases • The scope of services include Cardiology, Physiotherapy and Rehabilitation, Geriatric Med
Slide 12: New Health Check-up Center and B2B2C Saleshub at 14/F
HONG KONG BUSINESS INITIATIVES AND GROWTH STRATEGY NEW HEALTH CHECK-UP CENTER AND B2B2C SALESHUB AT 14/F 14/F Health Assessment Centre • Renovating 14/F with expanded General Practitioner services Dental services Health Check-up services New B2B2C Saleshub 12
Slide 13: Expansion of Imaging & Laboratory Business
HONG KONG BUSINESS INITIATIVES AND GROWTH EXPANSION OF IMAGING & LABORATORY BUSINESS • ACTON Digital PET-CT Centre commenced operation in Jan 2021 • The completion of the acquisition of an MRI centre - Flash Mover MRI • Cover full line of imaging services, including X-ray, 3D Mammogram, Ultrasound,
Slide 14: All-in-One Digital Healthcare Solutions
HONG KONG BUSINESS INITIATIVES AND GROWTH ALL-IN-ONE DIGITAL HEALTHCARE SOLUTIONS Auxiliary • Interface with UMP Service lab / imaging services • Online appointment Patient • Auto reminder Experience • Advanced self registration Clinical Management Clinic • Streamline appointment booking System Oper
Slide 15: Mainland China Major Events and Milestones
MAINLAND CHINA MAJOR EVENTS AND MILESTONES: AN EVENTFUL YEAR AS WE CONTINUED TO BUILD OUR PLATFORM IN SUPPORT OF OUR FUTURE AMIBITIONS 02 - PET-CT Centre 04 - Flash Mover MRI Centre acquisition 06 - Repositioned to GBA 08 - ESS AI GRANT Our investment in ACTON We acquired further 75% interests in an
Slide 16: Right-to-Win in Mainland China
RIGHT-TO-WIN IN MAINLAND CHINA: OFFERING A UNIQUE VALUE PROPOSITION AS A PRIMARILY MEDICAL PROFESSIONAL BASED COMPANY ENABLED THROUGH TECHNOLOGY Rapidly expanding our asset-light Nurturing Chinese GPs offline PPP service network with and nurses with GOLDTM international standard across training prog
Slide 17: Commercial Health Insurance: Estimated Market Size of RMB 2TN in FY2025
COMMERCIAL HEALTH INSURANCE: WILL BECOME THE KEY PAYER FOR HEALTHCARE SERVICES IN MAINLAND CHINA, WITH AN ESTIMATED MARKET SIZE OF RMB 2TN IN FY2025 China’s health insurance premium income and as % of total Future health insurance premium income as a insurance premium income in 2014-2020 % of China'
Slide 18: Mainland China: Significant Progress in Medical Infrastructure Development
MAINLAND CHINA: SIGNIFICANT PROGRESS IN MEDICAL INFRASTRUTURE DEVELOPMENT GOLDTM doctor and nurse trainees PPP service points 1252 158 159 92 85 78 ~300 68 68 1,093 Versions of our virtual No. of doctors participating 765 656 73 consultation platform in our consultation case 66 6 6 6 revamped since
Slide 19: Our PPP Service Points Have Grown Explosively in the Greater Bay Area
MAINLAND CHINA: OUR PPP SERVICE POINTS HAVE GROWN EXPLOSIVELY IN THE GREATER BAY AREA 1 Total PPP service points as of Aug 31, 2021 Tianjin 158 2 Jiangsu Qidong Completed 73 15 5 Zhaoqing 42 Guangzhou Under construction 4 Huizhou 45 Foshan 16 19 5 Dongguan 2 1 Planning 9 Zhongshan 40 Shenzhen 3 Hong
Slide 20: Strategy and Performance Enablers
Strategy and Performance Enablers
Slide 21: Healthcare Consumerism
HEALTHCARE CONSUMERISM ñ CONSUMERS INCREASINGLY WANT TO MAKE THEIR OWN CHOICES IN HEALTHCARE SERVICES FOCUS ON HEALTH COVID INDUCED AGING POPULATION HEALTH INEQUALITY AND WELLNESS SOCIAL DISTANCING Poverty, social disadvantage and An aging population is a The aging population has Covid has led to va
Slide 22: What Are the Solutions to These Market Dynamics?
WHAT ARE THE SOLUTIONS TO THESE MARKET DYNAMICS? PREVENTIVE CARE DIGITAL ENABLEMENT CARE MODEL INNOVATION (CONSUMER NOT PATIENT) Traditional view of patient needs to be Digital continues to disrupt and the pace Increasing cost of healthcare, changed as we focus on preventive health of change in heal
Slide 23: UMP Strategy Built Around Our Core Purpose and Three Pillars
UMP STRATEGY BUILT AROUND OUR CORE PURPOSE AND THREE PILLARS “To provide everyone access to trusted Purpose and affordable care so that everyone can pursue their dreams without worrying about their health” INVESTMENT IN GROWTH IN SERVICE SHARE GROWTH IN SHARE GROWTH IN PROFESSIONAL SERVICES Objectiv
Slide 24: Laser-Focused Execution of Our Growth Strategies
LASER-FOCUSED EXECUTION OF OUR GROWTH STRATEGIES Develop GOLD into an interactive and cohesive knowledge sharing platform for professionals Preferred platform for professionals and preferred provider for corporates Merge online-to-offline services: coupling our expanding offline PPP service network
Slide 25: Sustained Investment in Our Performance Enablers
SUSTAINED INVESTMENT IN OUR PERFORMANCE ENABLERS TO DRIVE STRATEGY EXECUTION AND AMBITION ACCOMPLISHMENT STRONG PARTNERSHIPS TRUSTED BRAND EMBEDDED IN DIGITALLY ENABLED PATIENT FACILITATING HEALTH INVESTMENT IN TALENT QUALITY AND VALUE-BASED CARE JOURNEY FOCUS ECOSYSTEM PLATFORM UMP was founded more
Slide 26: Focusing on Mainland China: UMP Integrated Service Platform
FOCUSING IN ON MAINLAND CHINA: UMP INTEGRATED SERVICE PLATFORM FOR HIERARCHICAL MEDICAL SYSTEM Primary Care Focus Patient-centric Online Merge Offline Hong Kong Resources AI Empowered • Focus on the daily needs of • System architecture and • Using technology to • Hong Kong Service • Quality Control
Slide 27: Business Footprints in the Greater Bay Area Inline with Government Efforts
MAINLAND CHINA MAJOR EVENTS AND MILESTONES BUSINESS FOOTPRINTS IN THE GREATER BAY AREA INLINE WITH GOVERNMENT EFFORTS Strategic Partnership with Shenzhen Qianhai Key Initiatives Shekou Free Trade Zone Hospital • Cross-border medical services delivered by Hong Kong doctors • Cross-border medication s
Slide 28: Attracted Significant and Widespread Attention from Media
MAINLAND CHINA MAJOR EVENTS AND MILESTONES ATTRACTED SIGNIFICANT AND WIDESPREAD ATTENTION FROM MEDIA Source: Nanfang Plus, Hong Kong Commercial Daily, Ta Kung Pao, i-CABLE, SZTV 28
Slide 29: Digitalising the Patient Journey
DIGITALISING THE PATIENT JOURNEY: CONTINUED INVESTMENT TO DISRUPT THE CURRENT MODEL AND DELIVER, TRUSTED, ACCESSIBLE AND AFFORDABLE CARE Iterating patients Virtual Care service on WeChat mini-app Redesigned clinical system for doctors & nurses supports both online and mobile app and offline service
Slide 30: Artificial Intelligence: Integrating AI into Our Business
ARTIFICIAL INTELLIGENCE: INTEGRATING AI INTO OUR BUSINESS TO ACHIEVE PRACTICAL OBJECTIVES AND TANGIBLE VALUE Smart Prescription powered by AI to assist doctors in selecting drugs – model learns from knowledge curated and AI performs speech-to-text conversion improves over time behind the scene to co
Slide 31: 2026 Strategic Ambition
2026 STRATEGIC AMBITION 27 million online and offline patient visits in Mainland China market 30 million FY2026 3 million online and offline patient visits in Hong Kong and Macau markets 31
Slide 32: FY21 Financial Performance
FY21 Financial Performance
Slide 33: Key Performance Indicators
RAPID GROWTH IN H2 AS COVID INDUCED SOCIAL DISTANCING IMPACT REDUCED DELIVERING SOLID GROWTH FOR FY21 AND POINTS TO A POSITIVE FY22 OUTLOOK Key Performance Indicators 623m Turnover 128m EBITDA H1 FY21 H2 FY21 +12% -14% Strong growth in our Profitable core business T/O: 302M (-2%) T/O: 321M (+28%) im
Slide 34: Adjusted EBITDA Growing a Strong +30%
ADJUSTED EBITDA GROWING A STRONG +30%: +40% EXCLUDING INVESTMENT IN MAINLAND CHINA MARKET REFLECTING OUR RESILIENT BUSINESS MODEL AND REVENUE SOURCES THAT PROVIDES A NATURAL HEDGE IN CHALLENGING ENVIRONMENT $ in millions FY21 FY20 PROFIT AFTER TAX 31.5 60.3 (+) Depreciation & Amortization 76.9 78.2
Slide 35: Hong Kong & Macau: Scheme Visit Count Down While Turnover Fell Only 4%
HONG KONG & MACAU: SCHEME VISIT COUNT DOWN -23% WHILE TURNOVER ONLY FELL -4% W/ PRE-PAID PLAN HELPED HEDGE BUSINESS RISKS PATIENT VISITS TURNOVER SIZE TURNOVER GROWTH Scheme -23% vs FY20 -4% vs FY20 DIVERSE PORTFOLIO OF SERVICE OFFERINGS TO PROVIDE HOLISTIC PATIENT CARE PATIENT VISITS TURNOVER SIZE
Slide 36: Hong Kong & Macau: Diverse Portfolio of Service Offerings
HONG KONG & MACAU: DIVERSE PORTFOLIO OF SERVICE OFFERINGS TO PROVIDE HOLISTIC PATIENT CARE PATIENT VISITS TURNOVER SIZE TURNOVER GROWTH Specialists +13% vs FY20 +11% vs FY20 Lab and Imaging +37% vs FY20 +59% vs FY20 Dental -1.1% vs FY20 +10% vs FY20 36
Slide 37: Mainland China: Innovative Service Offerings with Business Partners
MAINLAND CHINA: INNOVATIVE SERVICE OFFERINGS IN COLLABORATION WITH BUSINESS PARTNERS TO DELIVER AFFORDABLE TRUSTED CARE PATIENT VISITS TURNOVER SIZE TURNOVER GROWTH Check-up -0.4% vs FY20 -3% vs FY20 GBA Health Mgt +409% vs FY20 +673% vs FY20 GOLD Training N/A +14% vs FY20 37
Slide 38: Financial Position
FINANCIAL POSITION At 30 Jun 21 At 31 Dec 20 At 30 Jun 20 In HKD’000 Property, plant and equipment 99,430 99,081 96,424 Goodwill 164,768 171,264 171,264 Property, plant and equipment Other intangible assets 61,681 75,769 76,972 Financial assets at amortised cost 19,025 32,878 20,206 PPE mainly compo
Slide 39: Conclusion
Conclusion
Slide 40: FY22 Outlook: Strong Double Digit Topline Growth
FY22 OUTLOOK: STRONG DOUBLE DIGIT-TOPLINE GROWTH WITH STABLE BUT IMPROVING MARGIN OUR COMMITMENT TO THE FUTURE - HK200m commitment for UMP China expansion - HK50m for clinical system digitization & expansion Expanding into B2B2C channel projects in Hong Kong (FY22 Q2) - Further investment in HK-rela
Slide 41: Appendix: Category Trends and Market Outlook
Appendix Category Trends and Market Outlook
Slide 42: Hong Kong Facing Escalating Healthcare Cost Issues from Aging Population
HONG KONG IS FACING SIMILAR ESCALATING HEALTHCARE COST ISSUES AS OTHER COUNTRIES ARISING FROM AN AGING POPUPLATION AND PLATEAU IN WORKFORCE Source: The World bank MAINLAND CHINA: WITH A POPULATION OF 1.4BN, Source: "Hong Kong Population Projection 2020-2069", Source: Social Analysis and Research Sec
Slide 43: What Are the Market Implications?
WHAT ARE THE MARKET IMPLICATIONS? GOVERNMENT IS LOOKING AT MEASURES OF REDUCING THE BURDEN OF FUTURE HEALTH CARE COSTS THROUGH PRIVATE PARTNERSHIPS AND RAISNG THE PROLIFERATION OF PREVENTIVE CARE, WHILE ON THE PRIVATE SIDE COMMERCIAL INSURANCE HAS AN INCREASING ROLE TO PLAY AFFORDABLE ACCESSIBLE ACC
Slide 44: Public Private Partnerships: Hong Kong Hospital Authority
PUBLIC PRIVATE PARTNERSHIPS: HONG KONG HOSPITAL AUTHORITY THROUGH COOPERATION WITH THE PRIVATE SECTOR HAS LAUNCHED A NUMBER OF PUBLIC-PRIVATE COLLABORATION PROJECTS TO PROVIDE PATIENTS WITH MORE MEDICAL OPTIONS General outpatient clinic Public-private collaborative Dazzling Action public-private col
Slide 45: Community Health Centres: China Government Raising Their Role
COMMUNITY HEALTH CENTRES: CHINA GOVERNMENT LOOKING TO RAISE THE ROLE OF COMMUNITY HEALTH CENTRES AND PRIMARY CARE TO TRIAGE AND LOWER THE COST OF HEALTHCARE DIVERTING TRAFFIC FROM HOSPITALS “Guiding Opinions of Pilot “Guiding Opinions of the General “Guiding Opinions of the “The 13th Five-Year Plan
Slide 46: Thank you
Thank you UMP789:; GOLDTM789:; <=>?@AB www.ump.com.hk Hong Kong | Macau | Beijing | Shanghai | Tianjin | Guangzhou | Shenzhen | Zhuhai | Zhongshan | Dongguan | Foshan | Jiangsu !" | #$ | %& | '( | )* | +, | -. | /( | 01 | 23 | 41 | 56
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