Middle East Healthcare Company · TADAWUL:4009
Middle East Healthcare — Q3 2019 Earnings Presentation
16 slides from Middle East Healthcare's earnings presentation, September 2019
Slide 1: Middle East Healthcare Company (MEAHCO) Investor Presentation – September 2019
Middle East Healthcare Company (MEAHCO) Investor Presentation – September 2019 1
Slide 2: Table of contents
Table of contents • MEAHCO at a glance • Ongoing restructuring plan • Key financial indicators • Employees statistics • Capex and expansion plan • Shareholder information 2
Slide 3: MEAHCO’s network of services
MEAHCO’s network of services • Saudi Arabia’s most geographically diversified healthcare player • Full fledged footprint in six cities (Jeddah, Asser, Riyadh, Madinah, Hail, Dammam) • Comprehensive network covering ~98% of Saudi Arabia’s population • Ongoing expansion into Makkah, along with Madinah
Slide 4: Expansion timeline
Expansion timeline Beverly Jeddah Asser Riyadh Madinah Hail Dammam Clinics • Est. 1988 • Est. 2000 • Est. 2001 • Est. 2003 • Est. 2017 • Est. 2018 • Est. 2019 • 213 beds • 239 beds • 230 beds • 183 beds • 60 beds • 20 clinics • 150 beds • 145 clinics • 68 clinics • 69 clinics • 56 clinics • 25 clini
Slide 5: Hospitals under management contract
Hospitals under management contract • Operational ➢ SGH Yemen – est. 2006 ➢ SGH Dubai – est. 2012 ➢ SGH Cairo – est. 2015 ➢ SGH Sharjah – est. 2018 ➢ SGH Ajman – est. 2019 • Pipeline ➢ SGH Alex West (Egypt) ➢ SGH Giza (Egypt) ➢ SGH Lahore (Pakistan) ➢ SGH Islamabad (Pakistan) ➢ SGH Karachi (Pakistan
Slide 6: Accreditation
Accreditation Jeddah Asser Riyadh Madinah Hail Dammam Accredited Accredited Accredited Accredited Postponed In process Accredited Accredited Accredited Accredited Accredited In process In process In process In process In process In process In process Pending In process In process Accredited Accredit
Slide 7: Ongoing restructuring plan
Ongoing restructuring plan • Leveraging the Group’s scale ➢ Appointed McKinsey, based on success fees, to standardize and restructure the group procurement cycle ➢ Renegotiated existing facilities’ terms with most of the banks at favorable terms ➢ Successful renewal of pricing with select insurance
Slide 8: Key financial indicators
Key financial indicators Revenue, Revenue growth EBITDA, EBITDA margin Net profit, Net profit margin 450 EBITDA EBITDA margin Net profit Net profit margin 400 350 70 20% 35 8.6% 10% 60 15.1% 30 300 SAR million 13.0% 8% 50 15% 25 6.0% SAR million SAR million 250 40 20 6% 200 10% 150 30 15 4% 100 20 5
Slide 9: Operational KPIs
Operational KPIs Number of performed surgeries Utilisation rate Average length of stay 9,000 100% 6 8,000 4.98 4.79 76% 5 7,000 80% 68% 6,000 4 60% 5,000 3 4,000 Bed utilisation 40% 3,000 2 2,000 20% 6,378 7,858 1 1,000 0 0% 0 3Q18 3Q19 9M18 9M19 3Q18 3Q19 21,500 100% 6 21,000 4.85 4.73 80% 5 20,500
Slide 10: Revenue structure
Revenue structure Revenue breakdown by service Revenue breakdown by clientele GPM breakdown by service 3Q18 3Q19 Insurance Ministry of Health Cash Others 3Q18 3Q19 250 100% 5% 4% 50% 200 26% 21% 80% 40% SAR million 150 60% 26% 30% 30% 100 40% 20% 50 20% 49% 10% 39% 0 IP OP Pharmacy Trading & 0% 0% A
Slide 11: Patients evolution
Patients evolution Historical trends 9M19 vs. 9M18 3Q19 vs. 3Q18 Number of inpatients Number of inpatients Number of inpatients 60,000 50,000 16,000 50,000 14,000 40,000 12,000 40,000 30,000 10,000 30,000 8,000 20,000 6,000 20,000 45,413 45,950 44,615 47,650 34,891 40,737 11,585 14,953 4,000 10,000
Slide 12: Balance sheet and cash cycle
Balance sheet and cash cycle Cash conversion cycle Outstanding receivables Receivables split by clientele 9M19 1,200 1,070 Ministry of Health Insurance Others Related Party 350 321 1,000 1% 15% Days on Hand (DoH) 300 800 SAR million 250 232 204 200 600 9M19 150 115 400 100 55% 200 29% 50 0 0 Receiva
Slide 13: Employees statistics
Employees statistics Number of employees Headcount split by profession Saudisation rate 6,000 Doctors Nurses Allied Health Admin Staff Saudi Non-Saudi 5,280 5,025 5,000 14% 4,000 34% 32% 3,000 9M19 9M19 2,000 25% 1,000 68% 0 9M18 9M19 26% 13
Slide 14: Capex and expansion plan
Capex and expansion plan • SGH Riyadh Outpatient Tower and Beds Expansion ➢ 147 bed, 76 clinic ➢ Capex 194 million ➢ To be operational 1Q 2021 • SGH Makkah Hospital ➢ 300 bed ➢ Capex SAR 389 million ➢ To be operational 2H 2021 • SGH Makkah Housing ➢ Capex SAR 114 million ➢ To be operational 2H 2021
Slide 15: Shareholder information
Shareholder information Stock Data: Shareholder structure Foreign ownership Bloomberg / Reuters: MEH AB / 4009.SE Outstanding shares: 92,040,000 Free float, 60% 37.7% 49.0% Free float: 37.7% 50% Mkt. Cap: USD 589 million 40% ADVT: USD 1.5 million 30% International 20% Finance 12.4% Corporation, 10%
Slide 16: Thank you
SS (Sto) dyasall Glo wall Ssiul AS MIDDLE EAST HEALTHCARE COMPANY (MEAHCO) SAUDI GERMAN HOSPITALS GROUP ilolll gageuull Glut egoro Thank you 16
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