Mlp Saglik Hizmetleri As Class B · BIST:MPARK

Mlp Saglik Hizmetleri As Class B — MLP Care — Ak Investment Turkey Outlook Virtual Conference 2022

37 slides from Mlp Saglik Hizmetleri As Class B's conference presentation, Mar 15, 2022

  1. Slide 1: MLP Care Investor Presentation

    MLP Care Investor Presentation Ak Investment Turkey Outlook Virtual Conference - March 15, 2022

  2. Slide 2: MLP Care: The #1 Private Hospital Group in Turkey

    MLP Care: The #1 Private Hospital Group in Turkey Two brands and one concept targeting three different price points with The largest hospital group in 30 Hospitals in consistently outstanding medical service Total Turkey quality Established in 1993, listed on BIST in 2018 20,000+ Staff 1 ~6,000 Beds

  3. Slide 3: Our Growth Strategy is Intact

    Our Growth Strategy is Intact MLP Care continues its asset light growth strategy Growing our existing business by increasing capacity utilization at large hospitals Expanding in metropolitans through mid- large scale hospitals (min. 100 bed capacity) Quick EBITDA ramp-up through leveraging MLP Care’

  4. Slide 4: Liv Hospital Brand Expands in İstanbul

    Liv Hospital Brand Expands in İstanbul Map of Istanbul Liv Hospital VadIstanbul Hospitals with Medical Park Brand Location: Sarıyer / Istanbul Hospitals with Liv Hospital Brand Opening Date: May 2021 Key Statistics  37k sqm  125 bed capacity  76 policlinic rooms  7 operating rooms  MLP Care hos

  5. Slide 5: At a Glance: MLP Care 2021 Financial Highlights

    At a Glance: MLP Care 2021 Financial Highlights  Continued robust uptick in domestic patient revenues and foreign medical tourism revenues quarter-on-quarter (w/o fx impact) Adj. EBITDA Revenue  EBITDA improved mainly due to TL 5,796 m TL 1,477 m  strong operational performance 44% Growth 54% Gro

  6. Slide 6: Strong Revenue Growth

    StrongRevenue Strong RevenueGrowth Growth Revenue (TLm) 44.4% 5,796 4,015 46.2% 1,756 1,201 Q4 2020 Q4 2021 2020 2021 Denotes growth of Revenue vs. the same period of the last year 6

  7. Slide 7: Double Digit Growth in Multiple Revenue Segments

    Double DoubleDigit DigitGrowth Growthin inMultiple MultipleRevenue RevenueSegments Segments 2021 (33%) 109%  Revenue from SSI was up by 18% in Q4 2021 3% (SSI Insurance allows for a wide addressable market, which is c.98% of the total population) 12% 24% 24%  Self pay was up by 29% in Q4 2021  Re

  8. Slide 8: # of People with Top-up Insurance Passed PMI

    # of People with Top-up Insurance Passed PMI # of People with Insurance in Turkey (in thousand) 2.540 2.595 5,135 2.305 1.607 3,912 Growth (2020 – 2021) 10.2% 61.5% 31.3% PMI Top-up PMI+Top-up # of People with Top-up Insurance in Turkey (in thousand) 12.2021; 2,595 Average LTM Addition to 12.2020; 1

  9. Slide 9: Significant Growth Potential of FMT Revenue

    Significant Growth Potential of FMT Revenue Medical Tourism Revenue (USD m) TOP 10 FMT Revenue % by Department in 2021 12.2% 65.5% 32.7% 37.4% 77 80 11% (36.7%) 10% 10% 68 7% 6% 5% 52 4% 3% 3% 3% 49 37 Hematology Hematology Urology Diseases Orthopedics General Surgery Oncology Cardiology Brain and N

  10. Slide 10: Strong Domestic and FMT Revenue Growth Continued

    Strong Domestic and FMT Revenue Growth Continued Domestic Patient Medical Tourism Ancillary Business Revenue Revenue 43.9% 109.2% (32.7%) 42.8% 4.905 121.4% (22.9%) 179 712 1.448 252 57 Q4 2021 2021 Q4 2021 2021 Q4 2021 2021 Domestic Revenue q-o-q Growth Accelerated Growth of Foreign Decrease in Lab

  11. Slide 11: Continued Improvement in Average Prices

    Continued Improvement in Average Prices Outpatient Revenues (TLm) Inpatient Revenues (TLm) 53.3% 37.9% 34.0% 22.4% 19.3% 15.5% 454 464 258 320 2.047 2.857 1.335 2.073 2020 Volume & Mix Price 2021 2020 Volume & Mix Price 2021 Average Revenue Per Visit (ARPV) Average Revenue Per Protocol (ARPP) 500 50

  12. Slide 12: EBITDA Growth on the Back of Strong Revenue Growth

    EBITDA Growth on the Back of Strong Revenue Growth EBITDA1 (TLm) EBITDA2 (TLm) (w/o fx impact) 47.4% 54.1% 1.546 1.477 68.9% 1.049 958 68.9% 478 448 283 265 Q4 2020 1 Q4 2021 1 2020 1 2021 1 Q4 2020 2 Q4 2021 2 2020 2 2021 2 1 Adj. EBITDA: EBITDA TFRS adjustments that have no cash impact on relevant

  13. Slide 13: Prudent Cost Management

    Prudent Cost Management Cost of Service and G&A Expenses as a % of Revenues Cost Saving Measures enables us to reach the favourable EBITDA Margin Adj. EBITDA Margin 26.1% 26.7%  Material costs as a % of revenue declined in 2021 due 0,9% 0,9% to decrease in the share of laboratory business which has

  14. Slide 14: Strong Net Profit Improvement

    Strong Net Profit Improvement Net Profit (TLm) Net Profit (TLm) Allocated to Equity Holders of the Parent 347.3% 188.8% 355 290 200.8% 96.6% 140 125 123 71 65 42 Q4 2020 Q4 2021 2020 2021 Q4 2020 Q4 2021 2020 2021 Denotes growth of Net Profit and Net Profit Allocated to Equity Holders of the Parent

  15. Slide 15: Net Debt Decreased

    Net Debt Net Debt Decreased Decreased FX BASED NET DEBT 1 (in EUR m) GROSS DEBT PERCENTAGE 2020 2021 EUR30m EUR32m EUR22m equivalent of equivalent of equivalent of Cash Balance 680mTL Cash Balance 375mTL FX Cash FX Cash FX Cash Balance Balance Balance 15% 25% 75% 85% 65 51 Net Debt 2,117mTL Net Debt

  16. Slide 16: Improved Free Cash Flow and Operating Cash Flow

    Improved Free Cash Flow and Operating Cash Flow Maintenance Capex (TLm) Total Capex (TLm) OCF/ EBITDA FCF/ EBITDA 75.0% 106.9% 69.9% 4.0% 8.5% 85.7% 1.65 1.16 2.3% 493 229 4.1% 3 0 733 899 92 166 2020 2021 2020 2021 2020 2021 2020 2021 % of Revenue % of Revenue % of EBITDA % of EBITDA 16

  17. Slide 17: Why Invest in MLP Care?

    Why Invest in MLP Care? 1 Operates in the Attractive Turkish Healthcare Market 2 Clear Leader in Private Hospital Provision 3 Strong Brand Recognition and Unique Business Model 4 Clinical Excellence and World Class Service Offering 5 Superior Historical Financial Performance 6 Outstanding Platform f

  18. Slide 18: Operates In The Attractive Turkish Healthcare Market

    1 Operates In The Attractive Turkish Healthcare Market Turkey is an attractive healthcare market with a growing elderly population and level of affluence, with significant scope for expansion compared to OECD players. Turkish Healthcare Spending to Providers1 (TLbn) Growth in Aging Turkish Populatio

  19. Slide 19: Operates In The Attractive Turkish Healthcare Market

    1 Operates In The Attractive Turkish Healthcare Market Private operators have increased their market share by increasing capacity and by focusing on procedures with higher complexity. Private players now account for 22% of beds, but provide 53% of complex surgeries. Number of Hospital Beds (’000) Nu

  20. Slide 20: Operates In The Attractive Turkish Healthcare Market

    1 Operates In The Attractive Turkish Healthcare Market Supportive government policies have underpinned the expansion of private hospital groups Healthcare System and Key Participants Universal Healthcare Coverage with Patient Choice Regulation Funding Service Patients Universal healthcare coverage (

  21. Slide 21: Clear Leader in Private Hospital Provision

    2 Clear Leader in Private Hospital Provision MLP Care is the largest multi-specialty hospital group in Turkey and the only private player with a truly nationwide network MLP Care network (# of hospitals and locations)  National and local leader with a network covering the greatest number of cities

  22. Slide 22: Clear Leader in Private Hospital Provision

    2 Clear Leader in Private Hospital Provision MoH is investing in the PPP program, but large private players do not expect to see an impact in the near / mid term Highly illustrative schematic of the Turkish Healthcare Sector PPP success factors Top end of the Private Hospital market  City hospitals

  23. Slide 23: Strong Brand Recognition And Unique Business Model Addressing Multiple Price Points

    3 Strong Brand Recognition And Unique Business Model Addressing Multiple Price Points Two brands and one concept targeting three different price points with consistently outstanding medical service quality Overview and Positioning 30 Total Hospitals in Portfolio 6 Premium Premium segment 8 Premium m

  24. Slide 24: Clinical Excellence And World Class Service Offering

    4 Clinical Excellence And World Class Service Offering MLP Care benefits from a “Virtuous Circle” of best-in-class service, infrastructure and academic affiliations JCI accreditation SRC1 University affiliations The Gold Standard in Healthcare Globally The Global standard for quality surgical care M

  25. Slide 25: Clinical Excellence And World Class Service Offering

    4 Clinical Excellence And World Class Service Offering Top tier talent and patients are attracted to MLP Care’s unrivalled reputation, resulting in a steadily growing market share Ability to attract and retain top-tier physicians… CAGR Key points of attraction Proven track record of physicians recru

  26. Slide 26: Superior Historical Financial Performance

    5 Superior Historical Financial Performance EBITDA Growth > Net Sales Growth > CPI (Consumer Price Index) Net Sales (TLm) Adj. EBITDA1 (TLm) 21% 33% CAGR 2014-2021 CAGR 2014-2021 47% 43% 44% 36% 33% 26% 21% 22% 19% 18% 18% 17% 20% 9% 16% 10% 8% 12% 12% 5% 9% 2015 2016 2017 2018 2019 2020 2021 Net Sa

  27. Slide 27: Outstanding Platform for Further Growth

    6 Outstanding Platform for Further Growth Proven track record of greenfield expansions and M&A Total Hospitals 30 25 26 27 29 31 29 30 At Year End  MLP Care has added on average c.400 beds p.a.1 Greenfield through greenfield projects since 2014  Multiple opportunities identified for expanding bed

  28. Slide 28: Outstanding Platform for Further Growth

    6 Outstanding Platform for Further Growth MLP Care has several avenues to continue its growth trajectory Top line growth via the Growth through favourable insurance scheme revenue diversification  MLP Care has increased its market share in PMI (private medical insurance)  Self-Pay share of total p

  29. Slide 29: Appendix

    Appendix Revenue Breakdown by Payor Type – 2020 Operating Cash Flow – 2020 Historical Financial Statements Capital, Shareholder Structure & Subsidiaries Key Historical Milestones 29

  30. Slide 30: Revenue Diversification Through Growing Segments

    Revenue Diversification Through Growing Segments 2016 2021 (33%) 109% 4% 6% 12% 24% 5% 24% 16% 39% 83% 29% 34% 31% SSI Self-pay PMI, Top-up & Medical Tourism Other 37% Contr. Inst.  Revenue from PMI, Top-up & Contracted Institutions grew by 83% in 2021  Medical Tourism grew by 109% in 2021  SSI I

  31. Slide 31: Operating Cash Flow and Free Cash Flow improved in 2021

    Operating Cash Flow and Free Cash Flow improved in 2021 Operating Cash Flow / Adj. EBITDA Free Cash Flow 106.9% 85.7% 1,653 1,160 79.6% 899 490 733 663 2019 2020 2021 2019 2020 2021 % of EBITDA 31

  32. Slide 32: Historical Balance Sheet

    Historical Balance Sheet Audited Audited TLm December 31, 2021 December 31, 2020 Cash and cash equivalents 680 375 Trade receivables 1,318 1,155 Inventory 285 113 Short term other assets 458 542 Current assets 2,741 2,185 Tangible and intangible fixed assets 1,716 1,441 Right of use assets 539 257 D

  33. Slide 33: Historical P&L Statements

    Historical P&L Statements Audited Audited Unaudited Unaudited TLm 2021 2020 Change (%) Q4 2021 Q4 2020 Change (%) Revenues 5,796 4,015 44.4% 1,756 1,201 46.2% Cost of service (-) (4,217) (3,058) 37.9% (1,248) (909) 37.3% Gross profit 1,579 956 65.1% 508 292 73.9% General administration expenses (-)

  34. Slide 34: Reconciliation from Reported EBITDA to Adjusted EBITDA

    Reconciliation from Reported EBITDA to Adjusted EBITDA TLm 2021 2020 Q4 2021 Q4 2020 Net profit / (loss) 355 123 140 71 Tax (income) from operations 17 63 (103) 25 Depreciation and amortization of tangible and intangible fixed assets 336 252 98 64 Total interest expenses/(income) and fair value diff

  35. Slide 35: Capital, Shareholder Structure & Subsidiaries

    Capital, Shareholder Structure* & Subsidiaries *Shareholding structure after public offering (excluding the 6,827k shares purchased by shareholders from publicly traded portion) Usta Group – Elbaşı Group Sancak İnşaat Turizm (Founders) Lightyear Healthcare Hujori Financieringen Nakliyat B.V. B.V. •

  36. Slide 36: Key Historic Milestones

    Key Historic Milestones • Dr. Usta, • MPARK • 1 hospital • Carlyle • 1 • TURKVEN • 1 hospital • Founders Dr. Adem Elbaşı acquired • 2 • 3 acquired opened in Stocks acquired in Muharrem and Sancak hospital Ankara 40% stake hospitals hospitals 53.35% Samsun starting Usta and Group co- opened in MLP op

  37. Slide 37: Disclaimer / IR Contact

    Disclaimer This presentation may contain certain forward-looking statements concerning MLP Care’s future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available data. Act

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