Dr. Sulaiman Al-habib Medical Services Group Co. · TADAWUL:4013
Dr. Sulaiman Al-habib Medical Services — Q1 2020 Earnings Presentation
23 slides from Dr. Sulaiman Al-habib Medical Services's earnings presentation, May 2020
Slide 1: Q1 2020 Investor Presentation
Q1 2020 Investor Presentation As of 31 March 2020
Slide 2: Disclaimer
Disclaimer Disclaimer and important information in relation to this presentation This presentation has been prepared solely for use as earnings presentation of Dr. Sulaiman Al Habib Medical Services Group Company (the “Company”). By attending or by reading this presentation, you agree to be bound by
Slide 3: Presenting team
Presenting team Nasser Al Hagbani Faisal Al Nassar Chief Executive Officer Chief Financial Officer Q1 2020 Investor Presentation 3 May 2020
Slide 4: Agenda
AGENDA Who we are How we performed Spotlight Addressing challenges Q&A Appendix #1 Summarized financials Q1 2020 Investor Presentation 4 May 2020
Slide 5: Growth strategy
Gu.IJluLot 2 DR SULAIMAN AL HABIB Xx medical ou auhiac9.020/! Growth strategy
Slide 6: Equity story and strategy
Equity story and strategy A well-defined strategy enhanced by our core values Vision Mission To be the most trusted healthcare provider in medical excellence and To develop and operate state of the art medical facilities and provide patient experience globally innovative healthcare services to creat
Slide 7: Business structure
Business structure A fully integrated healthcare services provider Hospitals Pharmacies HMG Solutions ▪ 7 hospitals in Saudi Arabia and ▪ Outpatient pharmacies as part of the ▪ Cloud Solutions: technology Arms Dubai hospitals including HIS, e-medicine, mobile ▪ 1,900+ beds and 1,370+ clinics • 13 ph
Slide 8: Where we operate
Where we operate With total built-up area of 689,000+ m2, HMG owns most of its hospital properties Owned Operated hospital (management agreement) Under constructions Operated ICU Implemented HIS Opened 1995 (OPD) Olaya Medical Opened 2019 Complex Khobar Opened 2008 (INP) Beds 458 Beds 260 Clinics 30
Slide 9: Projects update
Projects update Solidifying our market leadership through aggressive expansion 2023E 2023E 2024E South-West Jeddah 50% ownership North Riyadh 100% ownership North Jeddah 100% ownership 330 Beds 245 Clinics 500 Beds 300 Clinics 350 Beds 270 Clinics SAR 91 mn SAR 1.5 bn SAR 669.7 mn SAR 2.2 bn SAR 243
Slide 10: Key messages
Key messages A best-in-class healthcare leader with a clear growth strategy Best-in-class Catalysts for value creation Efficiency drivers • Regional integrated healthcare provider with • Technology: Pioneer in healthcare • Efficient cash conversion cycle: shortest 25 year track record technology, aw
Slide 11: How we performed
Gu.I5!luLot =) DR SULAIMAN AL HABIB Xx nedical group auinacg2. How we performed
Slide 12: Highlights: Q1 2020
Highlights: Q1 2020 Revenue 9.40% EBITDA 10.03% Gross profit Net income margin Q1 2020 1,343 Q1 2020 353 Q1 2020 399.85 Q1 2020 18% Q1 2019 1,228 Q1 2019 321 Q1 2019 404.20 Q1 2019 19% SAR (Millions) SAR (Millions) SAR (Millions) Net income 5.35% EPS Net debt / EBITDA EBITDA margin Q1 2020 247 Q1 20
Slide 13: Financial performance highlights
Financial performance highlights Financial performance SAR million Revenue by segment SAR million 32.92% 1,600 29.77% 30.00% +9.40% 1,400 1,343 25.00% 1,200 1,228 1,343 1,228 1,000 20.00% 800 53 15.00% 21 237 208 600 10.00% 400 404 400 321 353 999 1,053 5.00% 200 234 247 - 0.00% Q1 2019 Q1 2020 Q1 2
Slide 14: Healthy balance sheet
Healthy balance sheet Total assets SAR million Cash conversion cycle Days 140 10,000 Assets breakdown 118 120 9,000 8,000 8,467 8,581 100 7,870 7,000 7,541 7,000 8% 78 80 6,000 72 14% 66 5,000 61 139 60 4,000 60% 109 18% 104 91 40 3,000 84 68 2,000 57 60 56 58 20 36 34 35 1,000 31 31 0 - 2017 2018 2
Slide 15: Low leverage levels
Low leverage levels Liabilities and equity SAR million Debt to equity % 10,000 60% Liabilities breakdown 9,000 50% 52% 8,000 7,000 40% 42% 6,000 4,591 4,824 30% 37% 4,579 35% 5,000 4,557 30% 4,549 4,000 54% 27% 20% 3,000 16% 2,000 3,877 3,757 2,984 3,291 10% 1,000 2,450 - 0% 2017 2018 2019 Q1 2019 Q
Slide 16: Economies of scale improve profitability
Economies of scale improve profitability Cash flow from operations SAR million 132% 135% 1,600 116% 118% 1,400 1,447 89% 100% 1,343 1,200 1,228 1,094 50% 1,000 1,060 800 0% 600 400 -50% 200 0 -100% 2017 2018 2019 Q1 2019 Q1 2020 Revenue CFO % of EBITDA Q1 2020 Investor Presentation 16 May 2020
Slide 17: Update: Covid-19 impact and response
Update: Covid-19 impact and response Situation remains fluid Expected impact Mitigating actions • Government precautionary • Could impact the Group’s future • Issuing of required curfew permits for operational teams on time to avoid service measures to limit and counter the financial results, cash f
Slide 18: Q&A
Q&A
Slide 19: Appendix #1: Summarized financials
Appendix #1 Summarized financials
Slide 20: Summary: Balance sheet
Summary: Balance sheet SAR ‘000 2018 2019 Q1 2019 Q1 2020 Current assets 2,908,116 2,989,126 2,946,396 3,053,294 Inventory 302,537 295,867 279,274 361,758 Investments 43,488 40,032 45,049 39,240 Fixed assets 4,287,023 5,142,279 4,599,719 5,126,970 Other assets - - - - Total assets 7,541,164 8,467,30
Slide 21: Summary: Income statement
Summary: Income statement SAR ‘000 2018 2019 Q1 2019 Q1 2020 Revenue 4,587,633 5,016,280 1,227,903 1,343,343 Sales cost (3,225,624) (3,492,741) (823,705) (943,492) Total income 1,362,009 1,523,539 404,198 399,851 Other revenues 99,199 63,515 18,140 16,798 Total revenues 1,461,208 1,587,054 441,507 4
Slide 22: Summary: Cash flow statement
Summary: Cash flow statement SAR ‘000 2018 2019 Q1 2019 Q1 2020 Net income 881,404 903,273 259,947 259,856 Depreciation 200,187 255,919 56,307 78,068 Accounts receivable 271,418 (322,563) 7,836 243,894 Inventory 3,715 (29,372) (13,826) (65,838) Prepaid expenses (37,470) (78,755) 8,518 15,794 Account
Slide 23: Dr. Sulaiman Al Habib Medical Services Group contact details
Dr. Sulaiman Al Habib Medical Services Group Tel: +966 11 525 9999 Fax: +966 11 462 0096 Mob: +966 50 338 2785 Email: investor.relations@drsulaimanalhabib.com P.O. Box 301578 Riyadh 11372, Kingdom of Saudi Arabia www.hmg.com Q1 2020 Investor Presentation 23 May 2020
Dr. Sulaiman Al Habib Medical Services Group — Q1 2020 Earnings Presentation on 6ix