Burjeel Holdings Plc · ADX:BURJEEL
Burjeel — H1 2023 Earnings Presentation
32 slides from Burjeel's earnings presentation, August 2023
Slide 1: Burjeel Holdings Q2 & H1 2023 Earnings Presentation
Burjeel Holdings Q2 & H1 2023 August 2023 Earnings Presentation
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Burjeel Holdings PLC based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informational purposes. It should not be construed as an offer to sell
Slide 3: Agenda and Presenters
Agenda and Presenters John Sunil Chief Executive Officer 01 Q2 & H1 2023 Financial Highlights 02 Progressing on Strategy Execution 03 Group Financial Review Muhammed Shihabuddin Chief Financial Officer 04 Outlook 05 Appendix Sergei Levitskii Head of Investor Relations 3
Slide 4: MENA's Leading Healthcare Provider
MENA’s Leading Healthcare Provider Diversified portfolio of brands covering full 16 24 socio-economic spectrum Hospitals Medical Centres Expanding footprint across the UAE and Oman, KSA 15 7 Pharmacies Other Services Unique hub and spoke business model capturing value across patient journey Deep exp
Slide 5: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Continued robust Patient footfall Strong EBITDA and Strong cash flow top-line growth increasing net profit growth conversion Group revenue growth Overall group patient footfall Group EBITDA1 increased 12% Group FCF increased by 73% accelerated to 16% YoY increased by 6%
Slide 6: Progressing on Strategy Execution
Progressing on Strategy Execution Ramp Up Of Increasing Expanding Geographic Growth Assets Patient Yield Complex Medicine Expansion Fully invested infrastructure with Expanding patient yield with Partnered with Northwell Health, Expanding into Saudi Arabia significant capacity to ramp up and group i
Slide 7: Large, Attractive, Resilient and Growing Addressable Markets
Large, Attractive, Resilient and Growing Addressable Markets Positive demographic and market trends $104bn GCC +1.4% 1.7% to 5.8% +17% market size UAE Population Growth 60+ Population Share UAE Medical Tourism Growth CAGR between 2021 - 2031 Increase from 2021 - 2031 CAGR between 2021 - 2031 Signifi
Slide 8: Expanding Our Healthcare Infrastructure
Expanding Our Healthcare Infrastructure Launch of 5 new medical centers in FY2023 The planned launch of five new medical centers by FY2023 will allow the group to tap into new markets and attract more patients, resulting in increased revenue streams and improved profitability. Burjeel will also bene
Slide 9: Solid International Expansion Opportunities
Solid International Expansion Opportunities Strong Momentum with International Expansion Multi-pronged strategy for 1 2 50:50 Joint Venture with Pursuing opportunities in new expansion into KSA Leejam to establish and operate MENA markets to provide O&M more than 60 physiotherapy, services for healt
Slide 10: Expanding O&M Opportunities with Low-Capex Returns
Expanding O&M Opportunities with Low-Capex Returns ADNOC has appointed Burjeel Holdings to operate & manage Al Dhafra’s Al Dhannah Hospital, ADNOC and other O&M opportunities located in the fast-growing industrial hub of Al Ruwais within the Western region of the UAE. Al Dhannah Hospital provides: A
Slide 11: Group Financial Review
Group Financial IStswitsiny so
Slide 12: Accelerated Top-line Growth
Accelerated Top-line Growth Group revenue growth Commentary (AED m) x % In patient revenue Q2 ’23 +152 +3 (4) 1,077 926 Group revenue increased 16.3% YoY to AED 1,077 million. +16.3% Hospital revenue increased 18.8% YoY to AED 960 million. YoY 34.4% 35.7% Medical Center revenue increased 3.3%
Slide 13: Consistently Strong EBITDA Growth
Consistently Strong EBITDA Growth Group EBITDA growth Commentary (AED m) x % EBITDA margin +43 +2 (21) Q2 ’23 225 201 Group EBITDA increased 12.0% YoY to AED 225 million. +12.0% Hospital EBITDA increased 25.7% YoY to AED 212 million. YoY 21.7% 20.9% Solid EBITDA margin maintained at 20.9% in Q
Slide 14: Increasing Patient Footfall and Bed Occupancy
Increasing Patient Footfall and Bed Occupancy Group outpatient footfall (m) Group inpatients footfall (k) x % OP Utilisation x % Bed Occupancy +11.1% 2,852 +20.2% 68 2,570 56 +5.5% +13.9% 1,294 1,366 33 29 75% 72% 73% 72% 50% 60% 50% 59% Q2 '22 Q2 '23 H1 '22 H1 '23 Q2 '22 Q2 '23 H1 '22 H1 '23 Hosp
Slide 15: Burjeel Medical City Performance
Burjeel Medical City Performance Total patients (k) Revenue (AED m)1 EBITDA (AED m)1 +91.1% +34.5% 66 475 +70.9% 194 353 +36.5% +29.9% +64.9% 34 32 114 243 95 25 178 58 13.9% 13.2% 9.7% 13.8% Q2 '22 Q2 '23 H1 '22 H1 '23 Q2 '22 Q2 '23 H1 '22 H1 '23 Q2 '22 Q2 '23 H1 '22 H1 '23 x % EBITDA margin Burjee
Slide 16: Manpower Investment to Accelerate Revenue Growth
Manpower Investment to Accelerate Revenue Growth Group OPEX breakdown1 EBITDA growth (as % of revenue) (AED m) X % EBITDA margin 78.7% 79.9% 78.7% 79.0% 8.9% 7.3% 8.7% 9.9% 1.6% 1.1% 2.0% 1.6% 24.6% +12.7% 25.3% 23.9% 23.9% 467 414 +12.0% 225 201 43.5% 46.2% 44.7% 43.0% 21.7% 20.9% 21.8% 21.6% Q2 '2
Slide 17: Strong Cash Flow Conversion
Strong Cash Flow Conversion Free cash flow1 Cash flow from operating activities (AED m) (AED m) 358 2019 2020 2021 2022 H1 '22 H1 '23 311 328 247 EBITDA 418 470 779 878 414 467 163 Change in NWC 157 (5) (196) (429) (245) (175) 79 Maintenance Capex (35) (18) (86) (83) (33) (57) 2019 2020 2021 2022 H1
Slide 18: Maintaining a Robust Balance Sheet
Maintaining a Robust Balance Sheet FY2021 FY2022 H1 '23 Debt Maturity as of 30 June 2023 Bank Balances and Cash 134 150 217 Interest bearing loans and borrowings 3,208 1,261 1,211 251 226 Bank overdraft 91 - - 152 140 152 130 Bank Debt1 3,299 1,261 1,211 106 54 Net Debt 3,165 1,111 995 Lease Liabili
Slide 19: High Net Profit to Deliver Healthy Return to Shareholders
High Net Profit to Deliver Healthy Return to Shareholders Net profit evolution1 Commentary (AEDm) x % Net profit margin Asset-light cash generative model underpins significant dividend paying capacity. +52% FY 22 vs 21 +47% H1 23 vs 22 Dividend policy: pay cash dividends from 2023 onwards, on th
Slide 20: FY 2023 Outlook
FY 2023 Outlook 20
Slide 21: FY 2023 Outlook
FY 2023 Outlook REVENUE GROWTH EBITDA MARGIN MAINTENANCE CAPEX NET LEVERAGE o Group revenue is o EBITDA margin expected o Maintenance CAPEX o Net Debt/EBITDA1 of expected to grow to improve to at least 2021 expected to be less than 2.5x to be organically in the high- levels approximately 2.5% of mai
Slide 22: Q&A
Q&A 22
Slide 23: Appendix
Appendix 23
Slide 24: Financial Summary Q2-H1 2023 & Q2-H1 2022
Financial Summary Q2-H1 2023 & Q2-H1 2022 AED Million Q2 '22 Q2 '23 H1 '22 H1 '23 AED Millions Q2 '22 Q2 '23 H1 '22 H1 '23 Revenue 926 1,077 1,898 2,162 Revenue 926 1,077 1,898 2,162 Opex1 (725) (852) (1,484) (1,695) Hospitals 808 960 1,678 1,917 EBITDA2 201 225 414 467 Medical Centers 97 100 182 20
Slide 25: Hospitals Segment | Financial Performance Update
Hospitals Segment | Financial Performance Update REVENUE (AEDm)1 EBITDA (AEDm) Hospitals Segment H1 '22 H1 '23 Change Inventories Consumed 480 540 12.5% % of Revenue 27.4% 26.9% +14.3% 2,006 1,755 39 Doctors’ and other employees1 721 812 12.6% 23 % of Revenue 41.1% 40.5% 745 624 Provision for ECL 30
Slide 26: Medical Centers Segment | Financial Performance Update
Medical Centers Segment | Financial Performance Update REVENUE (AEDm)1 EBITDA (AEDm) Medical Centers Segment H1 '22 H1 '23 Change Inventories Consumed 39 46 17.7% % of Revenue 21.3% 22.1% +13.7% 209 Doctors’ and other employees1 74 84 13.3% 184 2 % of Revenue 40.3% 40.1% Provision for ECL 4 2 (36.1%
Slide 27: Consolidated Statements of Profit or Loss and Other Comprehensive Income
Consolidated Statements of Profit or Loss and Other Comprehensive Income AED Million For the three months ended June 30 YoY For the six months ended June 30 YoY 2023 2022 Change % 2023 2022 Change % Revenue 1,077 926 16.3% 2,162 1,898 13.9% Doctors’ and other employees’ salaries and benefits (498) (
Slide 28: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position As of As of AED Million AED Million June-23 Dec-22 June-23 Dec-22 Share Holders Equity: Non Current Assets : Share Capital 521 521 Property and equipment 1,939 2,002 Shareholder's contribution 4 4 Intangible Assets 9 7 Other Reserve 3 3 Share Premium 367
Slide 29: Consolidated Statements of Cash Flows (1/2)
Consolidated Statements of Cash Flows (1/2) For the three months ended June 30 For the six months ended June 30 AED Million 2023 2022 2023 2022 Operating Activities Profit (loss) for the year 103 68 225 153 Adjustments for: Depreciation 58 63 117 129 Amortization 1 1 2 2 Depreciation of right of use
Slide 30: Consolidated Statements of Cash Flows (2/2)
Consolidated Statements of Cash Flows (2/2) For the Three months ended June 30 For the Six months ended June 30 AED Million 2023 2022 2023 2022 Investing Activities Additions to property and equipment (30) (20) (53) (32) Additions to intangibles (1) - (3) - Additions to capital work in progress - 7
Slide 31: EBITDA & EBITDA Pre IFRS-16 Reconciliation
EBITDA & EBITDA Pre IFRS-16 Reconciliation Operating Income Before Depreciation and Amortisation (EBITDA) EBITDA is calculated as profit for the period before income tax expense, finance costs, depreciation and amortization, interest income from related parties. Pre-IFRS 16 EBITDA calculated as EBIT
Slide 32: Investor Relations
INVESTOR RELATIONS Sergei Levitskii Head – Investor Relations sergei.levitskii@burjeelholdings.com ir@burjeelholdings.com T: +971 2 3041 111 F: +971 2 2222 363 M: +971 503802383 PO Box: 7400, Abu Dhabi, UAE Company website Investor Calendar 32