Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — Q3 2023 Earnings Presentation
28 slides from Cleopatra Hospital's earnings presentation, 2023
Slide 1: Transforming Healthcare in Egypt
Transforming Healthcare in Egypt Investor Presentation 3Q 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating
Slide 3: Our Mission & Values
Our Mission & Values ➢ A Patient-First Approach to Healthcare Our Mission • Delivering Leading Quality Services • Ensuring Safety of all Stakeholders • Growing Beds Supply & Expanding Their Distribution • Improving Quality of Lives Everyday ➢ Sustainable Growth & Cross-Asset Collaboration • Positive
Slide 4: CHG Financial Highlights
CHG Financial Highlights CHG continued its steep growth trajectory in both the third quarter and the first nine months of 2023, achieving record-breaking top-line performances. EGP 2,532 mn EGP 843 mn CHG's consolidated revenues reached an all-time Consolidated revenues in 9M23 Gross Profit in 9M23
Slide 5: CHG: A Diversified Healthcare Services Provider
CHG: A Diversified Healthcare Services Provider 71% 3% 17% 6% 2% New Revenue Stream 4Q23 Physical Outpatient IVF Fertility Therapy, Long Hospital Services Polyclinics Diagnostics Pharmacies Solutions Term Care and Rehabilitation CHG currently Bedaya, the Group’s Cleopatra October CHG currently opera
Slide 6: Record Performance Driven by Core Business Growth
Record Performance Driven by Core Business Growth EGP 2,532mn EGP 843mn EGP 678mn EGP 948mn EGP 321mn EGP 264mn +33% Total Revenue Growth +33 Gross Profit Growth - +32 Adj. EBITDA Growth- +43% Total Revenue Growth +45 Gross Profit Growth - +44 Adj. EBITDA Growth- margin 33% margin 27% margin 34% mar
Slide 7: Leading Healthcare Services Platform in Egypt
Leading Healthcare Services Platform in Egypt CHG was a pioneering force in Egypt's private healthcare sector, recognizing its potential early on. The Group introduced an innovative 360-degree integrated management system, focused on delivering quality patient care and safety outcomes. This holistic
Slide 8: CHG's Broad Network Across Greater Cairo
CHG’s Broad Network Across Greater Cairo Leveraging a growing footprint, CHG continues to penetrate new segments of the population and provide high quality care to underserved regions across Greater Cairo (100% ownership) 772 Beds 10 Facilities +1 Million +35 Thousand +300 beds to be introduced by F
Slide 9: Large, Attractive, and Resilient Growth Market
Large, Attractive, and Resilient Growth Market Egypt’s health spending has increased at a greater pace over the past Beds, Doctors, & Nurses Ratios per 1,000 population regionally decade and is now above global and EM median as of 2022 Egypt GCC MENA • Doctor/1,000 population ratio for Egypt is bett
Slide 10: Growing Population & Prevalence of Lifestyle Diseases
Growing Population & Prevalence of Lifestyle Diseases Egypt’s Population and Age Profile Composition Forecast • The current population of Egypt stands at 105 mn (as of 2023) rising from 80 mn in 2010, a CAGR of over 2% for this period. Projections forecast Egypt’s population to reach 130 mn by 2030
Slide 11: Key Pillars of CHG's Centers of Excellence
A High-Level Perspective on the Key Pillars That Make Up CHG’s Definition of Centers of Excellence Defining Centers of Excellence Select Examples of CHG’s Centers of Excellence Competitive Defined Scope & Sales Nursing & Residents Advantage & Focus Team Differentiation Consumables Medical Equipment
Slide 12: Defined Core Growth Strategy
Defined Core Growth Strategy Integrating the platform to Leveraging payor and achieve higher efficiencies supplier relationships Geographic expansion in Egypt Enhancing utilization and linked to following optimizing existing capacity Establish centers of while expanding capacities and the main payor
Slide 13: CHG's Network Expansion into Underserved Regions
CHG’s Network Expansion into Underserved Regions In line with CHG's strategy to meet growing demand for quality healthcare services that stems from underserved regions, the Group has two key facilities in East and West Cairo that will introduce c.340 new beds to the market over the next 2 years. Eas
Slide 14: 3Q 2023 in Review
3Q 2023 in Review Cleopatra Investor Presentation 3Q 2023 14
Slide 15: 3Q23 Financial Performance Overview
3Q23 Financial Performance Overview CHG continued its steep growth trajectory in both the third quarter and the first nine months of 2023, achieving record-breaking top-line performances. The Group's consolidated revenues reached an all-time high of EGP 948 million in 3Q23, totaling EGP 2,532 millio
Slide 16: Efficiency Strategies Lead to Optimized Profitability
Efficiency Strategies Lead to Optimized Profitability Key Cost Components to Revenue Ratios CHG demonstrated sustainable productivity as management’s multi-faceted optimization 9M22 9M23 19% 21% strategy continues to mature, management realized efficiency in the Group’s Wages & 17% 16% 18% 16% Salar
Slide 17: Group Revenue Contribution by Hospital & Segment
Group Revenue Contribution by Hospital & Segment Revenue Contribution by Hospital Revenue Contribution by Hospital All CHG hospitals witnessed 3% 2% exceptional year-on-year growth in 5% 5% 5% 6% patient volumes and optimized case 2% 4% mixes. 7% 7% 17% 17% 3% 3% Cairo Specialized (CSH), Nile Badraw
Slide 18: Key Revenue Drivers
Key Revenue Drivers CHG's strategic focus on organic growth drives a 9% increase in cases served for 9M23. Volume growth was primarily fueled by core business volumes where outpatients grow by 14%, inpatient cases rise by 10%, and surgical procedures increase by 6% on the back of rapidly ramping up
Slide 19: Growing Refined Mix of Patients Base
Growing Refined Mix of Patients Base The Group offset the revenue high base effect created by the significant Covid-related inpatient revenue in the first quarter of 2022, which was characterized by higher average revenue and longer than average length of stays. The Group’s core business volumes mai
Slide 20: Promising Performance Outlook
Promising Performance Outlook Annual Top Line Growth of over 20% till FY2028 Protected Margins with Potential Annual Expansions • CHG’s price bargaining power, backed by backed by its extensive patient base, wide network • Growing utilization rates that are supported by coverage, and scientific appr
Slide 21: Governance & Shareholder Information
Governance & Shareholder Information Cleopatra Investor Presentation 3Q 2023 21
Slide 22: Governance (I)
Governance (I) The Group’s Board of Directors provides the necessary oversight and combination of expertise to thoroughly oversee the Group’s corporate governance framework, a cornerstone of the Group’s long-term success and value creation. Board of Directors Chairman Executive Board Member Care Hea
Slide 23: Governance (II)
Governance (II) OPERATIONS ABC No Referral Fees Medical Council • CHG has a zero-tolerance approach to bribery and • CHG does not pay any referral fees or kickbacks to • CHG recently launched a group-wide medical council corruption with a clear anti-bribery and anti-corruption physicians and instead
Slide 24: Appendix
Appendix Cleopatra Investor Presentation 3Q 2023 24
Slide 25: Consolidated Income Statement
Consolidated Income Statement All figures in EGP mn 3Q2022 3Q2023 % change 9M2022 9M2023 % change Revenues 661 948 43% 1871 2532 33% Cost of sales (437) (627) 43% (1245) (1689) 33% Gross profit 224 321 45% 626 843 33% Gross Profit Margin 34% 34% 33% 33% General & administrative expenses (97) (129) 3
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP mn 31 December 2022 30 September 2023 Non-current assets Fixed assets 1,567.3 1,940.4 Intangible assets 423.4 407.8 Right of use 149.2 103.5 Payment under investment 4.2 4.2 Investment in associates 3.8 3.8 Total non-current assets 2,147.9 2,459.7 Curren
Slide 27: Consolidated Cashflow Statement
Consolidated Cashflow Statement All figures in EGP mn 30 September 2022 30 September 2023 Cash flow from operating activities: Profit before tax 336.9 433.1 Adjustments for: Depreciation 97.4 110.8 Right of use depreciation - - Amortization of intangible assets 11.9 11.9 Allowance for impairment of
Slide 28: Thank you
Thank you INVESTOR RELATIONS CONTACTS SHAREHOLDER INFORMATION Telephone: +2 01000077893 EGX: CLHO.CA E-mail: waleed.hamed@cleohc.com Listed: June 2016 https://www.cleopatrahospitals.com/en/investors/ Shares Outstanding: 1.6 billion Cleopatra Investor Presentation 3Q 2023 28
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