Life Healthcare Group Holdings Limited · JSE:LHC
Life Healthcare — Merger or Acquisition (November 2016)
22 slides from Life Healthcare's merger presentation, November 2016
Slide 1: Acquisition of Alliance Medical Group
Acquisition of Alliance Medical Group 1
Slide 2: Legal Disclaimer
Legal Disclaimer IMPORTANT NOTICE: THIS PRESENTATION IS NOT AND DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE OR A SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR SECURITIES IN ANY JURISDICTION, INCLUDING THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN. THE SECURITIES MENTIONED IN THIS PRESEN
Slide 3: Today's Presenters
Today's Presenters André Meyer Guy Blomfield Pieter van der Westhuizen CEO Life Healthcare CEO Alliance Medical Group CFO Life Healthcare 3
Slide 4: Table of Contents
Table of Contents 1. Transaction Highlights 2. Market Overview 3. Alliance Medical Group 4. Transaction Rationale 5. Process 4
Slide 5: Transaction Highlights
Life... Transaction Highlights
Slide 6: Life Healthcare acquisition of Alliance Medical Group ("AMG")
Life Healthcare acquisition of Alliance Medical Group (“AMG”) Life Healthcare to acquire approximately 95% of AMG for an initial cash consideration of approximately £550 million and deferred cash consideration of up to £40 million dependent on performance To be funded by debt and refinanced through
Slide 7: Life Healthcare's Strategic Objectives
Life Healthcare’s Strategic Objectives Life Healthcare’s What AMG Offers Objectives Geographic diversity UK-based with presence in 8 countries provides pan EU reach Strong underlying demand driven by demographics, disease High growth burden and advances in medical technology Strong basket
Slide 8: Market Overview
Life... Market Overview
Slide 9: Western European Healthcare Markets
Western European Healthcare Markets Key Themes Demographics / growth(1) Demand growth (% aged over 60+ in Europe) Demographics 34.2% Increased focus on early diagnosis 29.6% Medical technology advancement 23.9% Capacity constraints in public facilities 20.3% Shift towards out-of-hospital
Slide 10: Alliance Medical Group
Life... Alliance Medical Group I 10
Slide 11: AMG Overview
AMG Overview ~ R3.8bn Revenue(1) ~ R1.1bn EBITDA(1) #1 #1 #1 UK(1) Italy(1) Ireland(1) Other Geographies 1 Spain Netherlands Territorial Coverage Portugal Germany DI static sites: 37 Owned clinics: 13 Operating sites: 19 PET-CT 1 contract sites: 31(2) Static sites: 22 Norway Mobiles: 45 2 Geographic
Slide 12: Fully Integrated Diagnostics Platform
Fully Integrated Diagnostics Platform Proven track record of partnering with national health services (e.g. NHS England) Overview of End-to-End Service Provision 1 2 3 4 5 6 7 8 9 Radiotracer Contract Equipment Radiography Staffing, Interim Flexible Contract Production and Governance Facility Design
Slide 13: Landmark Contract to Collaborate with NHS England on PET-CT at a National Level
Landmark Contract to Collaborate with NHS England on PET-CT at a National Level PET-CT Scans 5-year Survival is Markedly Lower UK is targeting the European 5-year cancer survivorship of 67% PET-CT scans per million population (2014) rate by 2020 2 900 Demand for PET-CT is expected to grow quickl
Slide 14: AMG Historical Financials
AMG Historical Financials Revenue EBITDA (Mar-YE, Rbn) (Mar-YE, Rbn) 6.0 2.0 5.0 1.5 3.7 3.8 4.0 1.1 0.9 3.0 1.0 2.0 0.5 1.0 0.0 0.0 2015A 2016A 2015A 2016A ___________________________ Note: FX(ZAR/GBP) = 17.5342; AMG’s financial statements have been prepared in accordance with IFRS as adopted by th
Slide 15: A Market Leading Player with Strong Growth Potential
A Market Leading Player with Strong Growth Potential A market leader in Europe Increasing focus on Focus on quality out-of-hospital and collaboration community settings Broad national Strong growth footprint in core potential markets Long term partner Integrated platform with healthcare providers Pr
Slide 16: Transaction Rationale
Life... Transaction Rationale I 16
Slide 17: Benefits of Combination
Benefits of Combination Accelerates Life Healthcare’s geographic diversification, 4% to 24% revenue outside of South Africa AMG operates in 8 European countries Positions Life Healthcare firmly in diagnostics A strategically important high growth business Further growth from underlying mar
Slide 18: Meaningfully Internationalises Life Healthcare
Meaningfully Internationalises Life Healthcare Illustrative Combination Impact Combination International Ireland 4% N.Europe 8% UK Other 7% South Africa 76% South Africa 4% 51% Italy 7% 96% Spain 3% UK 10% Offshore revenue from 4% to 24% Italy 34% 18.4 (Rbn) 3.8 14.6 14.6 5.0 4.0 3.8 1.0 1.0 4.0 Rev
Slide 19: Process
Life... Process I 19
Slide 20: Key Process Milestones
Key Process Milestones Date Event Transaction closes Nov 2016 Funds drawn from bridge facility Jan AGM 2017 Rights issue circular posted Q1 Rights issue 2017 20
Slide 21: Share Information
Share Information Share Key Facts Number of shares(1) 1,057,800,021 WKN / ISIN A1CZC2 / ZAE000145892 Ticker Symbol LHC Bloomberg Symbol LHC SJ Reuters Symbol LHCJ.J ___________________________ 1. As of 10 November 2016. 21
Slide 22: Contact
Financial Contact Contact Investor Relations: Adam Pyle Life Healthcare Group Holdings Limited Phone: 011 219 9000 For further information and current news: http://www.life.co.za/ 22
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