Mlp Saglik Hizmetleri As Class B · BIST:MPARK
Mlp Saglik Hizmetleri As Class B — MLP Care — Non-Deal Roadshow (March 2023)
40 slides from Mlp Saglik Hizmetleri As Class B's roadshow presentation, March 2023
Slide 1: MLP Care Investor Presentation
MLP Care Investor Presentation March 2023
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 28 Hospitals in consistently outstanding medical service Total Turkey quality Established in 1993, listed on BIST in 2018 18,000+ Staff 1 ~5,600 Beds
Slide 3: At a Glance: MLP Care Q4 2022 Financial Highlights
At a Glance: MLP Care Q4 2022 Financial Highlights Revenue growth exceeding inflation Revenue EBITDA EBITDA improved mainly due to TL 2,944 m TL 716 m strong operational performance 68% Growth 99% Growth effective cost saving measures FY 2022: FY 2022: 70% Growth 73% Growth Reduced leverag
Slide 4: Our Growth Strategy Is Intact
Our Growth Strategy Is Intact MLP Care continues its asset light growth strategy both in Turkey and abroad Expand in Turkey Increase FMT revenue Expand in Foreign Countries Expanding in metropolitans New hospital management Using digital marketing through mid-large scale hospitals contracts using th
Slide 5: Liv Hospital Brand Expands in Baku
Liv Hospital Brand Expands in Baku Map of Azerbaijan Liv Bona Dea Hospital Location: Baku / Azerbaijan Opening Date: July 2022 Key Statistics 37.5k sqm 156 Bed Capacity 28 Intensive Care Unit 12 Operating Rooms 5
Slide 6: MLP Care Expands in Adana
MLP Care Expands in Adana Map of Adana Özel Medical Park Seyhan Hospital Özel Medical Park Adana Hospital Location: Seyhan / Adana Location: Seyhan / Adana Opening Date: December 2022 Opening Date: December 2022 Key Statistics Key Statistics 11.0k sqm 13.0k sqm 164 Bed Capacity 158 Bed Capac
Slide 7: Our Sustainability Strategy
OurSustainability Our SustainabilityStrategy Strategy We create a sustainable value chain in everywhere we serve. Our Digitalization Journey Our People and Culture Our Contribution to Society Our Fight with Climate Change To ensure time and resource To be a preferred company To offer the best experi
Slide 8: Our Sustainability Targets
OurSustainability Our SustainabilityTargets Targets Our Digitalization Journey Our People and Culture Our Contribution to Society Our Fight with Climate Change • Zero data security incident • Reduce accident frequency rate • Add MLP Care Social Criteria • Add MLP Care Environmental • Increase the ra
Slide 9: Our Sustainability Targets
OurSustainability Our Targets SustainabilityTargets What we completed in 2022 Our plans for 2023 • Published the first sustainability report • Following-up progress towards pre-determined • Disclosed the sustainability strategy and KPIs targets and KPIs, make necessary adjustments • Renewed the sust
Slide 10: Revenue Grows Above Inflation
Revenue Grows Above Inflation Revenue (TLm) 90.9% 9,837 69.7% 93.0% 67.7% 5,796 2,944 1,756 Q4 2021 Q4 2022 FY 2021 FY 2022 Denotes growth of Revenue vs. the same period of the last year 10 Denotes growth of Revenue vs. the same period of the last year excluding Sentez
Slide 11: All Payer Types Continue to Grow
All Payer Types Continue to Grow FY 2022 70% Revenue from SSI was up by 8% in Q4 2022 3% 22% (SSI Insurance allows for a wide addressable market, 146% which is c.98% of the total population) 18% 18% Self pay was up by 63% in Q4 2022 Revenue from PMI, Top-up & Contracted Institutions was up by
Slide 12: # of People Top-up Insurance Users Reach 3.6 m
# of People Top-up Insurance Users Reach 3.6 m # of People with Insurance in Turkey (in thousand) 2,671 3,604 6,275 2,540 2,595 5,135 Growth (FY 2022 – FY 2021) 5.1% 38.9% 22.2% PMI Top-up PMI+Top-up # of People with Top-up Insurance in Turkey (in thousand) 12.2022; 3,604 12.2021; 2,595 Average LTM
Slide 13: FMT Revenue Triples in TL Terms
FMTRevenue FMT RevenueTriples Triplesin inTL TLTerms Terms Medical Tourism Revenue (USD m) TOP 10 FMT Revenue % by Department in FY 2022 31.8% 106 11% 11% 9% 80 7% 27.4% 5% 5% 5% 3% 3% 3% Gynecology and Hematology Hematology Urology Brain and Neuro General Surgery Cardiology Orthopedics Medical Onco
Slide 14: All Revenue Segments Continue to Grow
All Revenue Segments Continue to Grow Domestic Patient Medical Tourism Ancillary Business Revenue Revenue 58.6% 146.4% 69.8% 7,779 113.0% 304 60.1% 1,754 58.2% 2,318 536 90 Q4 2022 FY 2022 Q4 2022 FY 2022 Q4 2022 FY 2022 Domestic Revenue q-o-q Growth Accelerated Growth of Foreign Increase in Managed
Slide 15: Continued Improvement in Average Prices
Continued Improvement in Average Prices Outpatient Revenues (TLm) Inpatient Revenues (TLm) 68.0% 51.8% 66.8% 25.6% 1.2% 26.2% 1,367 732 26 749 3,440 4,339 2,047 2,857 2021 Volume & Mix Price 2022 2021 Volume & Mix Price 2022 Average Revenue Per Visit (ARPV) Average Revenue Per Protocol (ARPP) 834 83
Slide 16: EBITDA Is Up by 73%
EBITDA Is Up by 73% EBITDA (TLm)1 89.7% 2,346 73.3% 133.0% 99.5% 1,353 716 359 Q4 2021 Q4 2022 FY 2021 FY 2022 1 EBITDA and EBITDA margin calculated by deducting general administrative expenses from gross profit and adding depreciation and amortization expenses Denotes growth of EBITDA vs. the same
Slide 17: 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 EBITDA Margin 23.3% 23.8% Material costs as a % of revenue decreased in FY 2022 due to the lagging effect of increased costs on the back 0.9% 1.1% of ef
Slide 18: Bottom Line Improves on the Back of Strong Operations
Bottom Line Improves on the Back of Strong Operations Net Profit (TLm) Net Profit (TLm) Allocated to Equity Holders of the Parent 485.4% 457.9% 371.7% 1,676 1,620 442.6% 326.1% 363.8% 596 582 140 140 355 125 290 Q4 2021 Q4 2022 FY 2021 FY 2022 Q4 2021 Q4 2022 FY 2021 FY 2022 Denotes growth of Net Pr
Slide 19: Leverage Ratios Continue to Decline
Leverage Ratios Continue to Decline 2700.0 05 Net Debt (TLm) 05 2200.0 04 2,116 2,069 2,053 04 1700.0 03 1,521 1200.0 03 2.2x Reduction 345mTL 1,176 02 700.0 1.5x 787 02 Reduction 389mTL 0.9x 01 200.0 01 2020 2021 2022 -300.0 00 Net Debt (exc. IFRS 16) IFRS 16 Net Debt/EBITDA FX risk of balance she
Slide 20: Strong Cash Generation
Strong Cash Generation Maintenance Capex (TLm) Total Capex (TLm) OCF/ EBITDA FCF/ EBITDA 88.0% 50.9% 4.2% 8.9% 63.9% 8.5% 25.9% 4.0% 871 689 413 1,498 608 1,191 229 493 2021 2022 2021 2022 2021 2022 2021 2022 % of Revenue % of Revenue % of EBITDA % of EBITDA 20
Slide 21: 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
Slide 22: 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 (USDbn) Growth in Aging Turkish Populati
Slide 23: 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
Slide 24: 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 (
Slide 25: 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) TURKEY AZERBAIJAN İstanbul Samsun Kocaeli Ordu 9 2 Trabzon 2 1 2 Baku 1 1 Çanakkal
Slide 26: 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
Slide 27: Strong Brand Recognition And Unique Business Model
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 28 Total Hospitals in Portfolio Operational excellence 7 Premium Prem
Slide 28: 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
Slide 29: 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
Slide 30: Superior Historical Financial Performance
5 Superior Historical Financial Performance EBITDA Growth > Net Sales Growth > CPI (Consumer Price Index) Net Sales (TLm) EBITDA2 (TLm) 26% 35% CAGR 2014-2022 1 CAGR 2014-2022 4 98% 4 91% 90% 64% 41% 44% 44% 21% 17% 19% 22% 36% 12% 18% 10% 8% 16% 7% 9% 9% 20% 15% 12% 12% 3 3 3 3 2015 2016 2017 2018
Slide 31: 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 28 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 b
Slide 32: 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
Slide 33: Appendix
Appendix Revenue Breakdown By Payor Type Historical Financial Statements Capital, Shareholder Structure & Subsidiaries Key Historical Milestones 33
Slide 34: Revenue Diversification Through Growing Segments
Revenue Diversification Through Growing Segments 2016 2022 70% 22% 146% 3% 6% 5% 18% 18% 16% 39% 34% 28% 33% 57% 91% SSI Self-pay PMI, Top-up & Medical Tourism Other Contr. Inst. Revenue from PMI, Top-up & Contracted Institutions grew by 91% in 2022 Medical Tourism grew by 146% in 2022 SSI Ins
Slide 35: Historical Balance Sheet
Historical Balance Sheet Audited Audited TLm December 31, 2022 December 31, 2021 Cash and cash equivalents 766 680 Financial investments 214 - Trade receivables 1,455 1,318 Inventory 661 285 Short term other assets 701 458 Current assets 3,798 2,741 Tangible and intangible fixed assets 2,368 1,716 R
Slide 36: Historical P&L Statements
Historical P&L Statements Audited Audited Unaudited Unaudited Change (%) Change (%) TLm 2022 2021 Q4 2022 Q4 2021 Revenues 9,837 5,796 69.7% 2,944 1,756 67.7% Cost of service (-) (6,992) (4,217) 65.8% (2,054) (1,248) 64.6% Gross profit 2,845 1,579 80.2% 890 508 75.2% General administration expenses
Slide 37: EBITDA Reconciliation
EBITDA Reconciliation TLm 2022 2021 Q4 2022 Q4 2021 Revenue 9,837 5,796 2,944 1,756 Cost of service (6,992) (4,217) (2,054) (1,248) Gross profit 2,845 1,579 890 508 General administrative expenses (-) (945) (561) (303) (247) Depreciation and amortization expenses (Cost of service) 409 314 116 91 Dep
Slide 38: 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 (Founders) Lightyear Healthcare Sancak Yatırım İç B.V. ve Dış. Tic. A.Ş • • Muharrem Usta İzzet
Slide 39: Key Historic Milestones
Key Historic Milestones • Liv Hospital Ankara shares increased to 100% (from 75%) • Dr. Usta, • 2 • 3 hospitals • TURKVEN • 1 hospital • Founders • Exited from 3 Adem hospitals opened in • 1 hospital acquired • 1 hospital • MPARK acquired in Dr. • Carlyle 53.35% hospitals (İzmir, Elbaşı and opened i
Slide 40: 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