Ec Healthcare · HKEX:2138
Ec Healthcare — H1 FY2024/25 Earnings Presentation
23 slides from Ec Healthcare's earnings presentation, Nov 28, 2024
Slide 1: FY2024/25 Interim Results Investor Presentation
FY2024/25 INTERIM RESULTS INVESTOR PRESENTATION 28 November 2024 Bring Health, Beauty and Happiness to more People
Slide 2: Financial Performance
Financial Performance EC Healthcare Som
Slide 3: Key Financial Highlights
Financial Performance Key Financial Highlights YoY: FY24 1H vs FY25 1H HoH: FY24 2H vs FY25 1H Sales Revenue EBITDA Net Interim EBITDA Volume Profit EPS Margin -4.4% -2.7% +18.8% +88.1% 1.2 HK Cent 12.0% YoY YoY +2.2% pt YoY YoY Interim DPS Gearing +2.6% -1.3% +38.3% Turn Around from a Ratio Loss to
Slide 4: Revenue Mix
Financial Performance Revenue Mix HK$ M HK$ M HK$ M Medical Chinese Mainland Cross Border Mainland China Visitors (MCV) in HK & Macau2 Aesthetic Medical and Beauty and Wellness Taiwan HK Locals, Macau Locals, Taiwan Locals & Chinese Mainland Locals Other1 Hong Kong & Macau 22,653 18,391 15,769 10,87
Slide 5: Operation Highlights - Cost Structure and Margin Recovery
Operation Highlights - Cost Structure and Margin Recovery FY24 1H FY24 2H Margin Recovery FY25 1H Roll-up Strategies FY25 2H FY25 Revenue • Disposing of under-perform assets • TTIPP partnership (HK$ M) 2,121 2,090 • Delivering medical services of higher value 2,063 • Increasing GDP and medical expen
Slide 6: Financial Performance - Existing Business
Financial Performance - Existing Business Pre FY19 & M&A Cohort FY19 – FY25 1H Revenue Contribution EBITDA Contribution (excluding HQ overhead and G&A) HK$ M HK$ M FY19 FY20 FY21 FY22 FY23 FY24 FY25 1H FY19 FY20 FY21 FY22 FY23 FY24 FY25 1H 1,906 257 253 111 Margin: Margin: 1,613 15.9% 13.3% 279 433
Slide 7: M&A Strategy & EBITDA to Net Profit Waterfall
Financial Performance - M&A Strategy & EBITDA to Net Profit Waterfall HK$ M FY19 FY20 FY21 FY22 FY23 FY24 FY25 1H DISCIPLINED CAPITAL M&A RECYCLING 0.2 13 90 201 257 253 146 Existing EBITDA Business JUN / 2024 (recap) 598 471 442 525 463 402 187 Disposal of obstetric & gynaecology business in Sub-to
Slide 8: Capital Management
Financial Performance Capital Management Capital Structure as at 30 Sep 2024 Debt Maturity Profile as at 30 Sep 2024 TOTAL GEARING Weighted Average Interest Rate of 5.1% DEBT RATIO1 35.0% HK$ M HK$ 892M 494 242 288 UNDRAWN CASH ON FACILITIES HAND2 HK$ 600M HK$ 823M 110 252 288 110 FY25 FY26 FY27 Ban
Slide 9: Operation Highlight
Operation Highlight EC Healthcare % Soe
Slide 10: Operation Highlights
Operation Operation Highlights Highlights No. of Specialist Repurchase No. of Discipline & Rate 2 Service Points Veterinary Discipline 75.7% 171 39 + 6 Existing Customer Revenue Contribution 3 Total GFA -11.3% YoY Registered Doctors & Vets 71.1% 619,000 325 + 59 Customers’ sq ft Satisfaction Rate 4
Slide 11: Cost Structure Rationalization
FY23 Baseline Operation Operation Cost Structure Rationalization Highlights • Excluding new M&A from FY23 / 24 - Surecare & new distribution business • Excluding new organic expansion in FY23 / 24 - AMAH Vet Hospital Executed Saving 1H FY23 1 Registered Practitioner & 2 Rental & Related Expenses 3 C
Slide 12: Key Sub-Pillar Business Performance
Key Sub-Pillar Financial Business Performance (Including HQ Overhead and G&A) Performance Aesthetic Medical Dental Health Screening & Lab Imaging Medical Specialty Pain Management Veterinary INFANCY (0 – 24 months) DEVELOPING (25 – 48 months) MATURE (Beyond 48 months) Pillar 1 Infancy stage constitu
Slide 13: Key Sub-Pillar Business Half-on-Half Performance
Key Sub-Pillar Financial Business Half-on-Half Performance (Including HQ Overhead and G&A) Performance INFANCY DEVELOPING MATURE 1H FY25 vs. 1H FY24 (0 – 24 months) (25 – 48 months) (Beyond 48 months) EBITDA EBITDA EBITDA Change in (HK$M) (HK$M) (HK$M) YoY YoY YoY 2 3 1 Vast Improvement of HK$22.1M
Slide 14: Strategic Focus
3 Strategic Focus Approach 1 Business Development Gaining momentum with >40% medical revenue contribution from B2B, B2I, B2G • 2022-2023 Hong Kong's medical expenditure represents a • B2C Cross-Pillar Product Proposition to enhance CLV HK$284B, spanning across public, insurance, corporate medical an
Slide 15: TTIPP Partnership
TTIPP Partnership Operation Highlights Development Technology • “Fung House” located at 19-20 Connaught Road, Central, Hong Kong has been renamed as the “EC FUNG HOUSE Healthcare Tower (Central)” on 1 June Telecommunication 2024, signifies the Group’s first step in strategic EC HEALTHCARE TOWER posi
Slide 16: Strategy & Outlook
Strategy & Outlook
Slide 17: Shareholder Value Creation
Strategy & Outlook - Shareholder Value Creation 1 Strong Discipline in Diligent post-M&A integration of maturing assets into EC Healthcare's one-stop healthcare service Post-M&A integration platform via corporatization strategy Strong governance to manage synergy creation across financial, operation
Slide 18: Disciplined Capital Recycling with Enhanced TTIPP Partnerships
Strategy & Outlook - Disciplined Capital Recycling with Enhanced TTIPP Partnerships • Financial Planning 2020.05 Finance 2024.11 • Cost Efficiency Enhancement • Capital Management • Pre-payment Model Acquisition of Sales • 1v1 VIP Sales New Medical Centre Limited • Corporate Sales Team • Sales Force
Slide 19: Acquired Assets Overview by Sub-pillars
Strategy & Outlook - Acquired Assets Overview by Sub-pillars Highlight Sub-pillars which could be attractive to Strategic Partners: Rising insurance Rising digitalisation Scalable Growing demand penetration data Categorized 23 assets with brands into 8 sub-pillars since FY19 Aesthetic Medical Denta
Slide 20: Outlook - Chairman Message
Outlook Chairman Message Market Remains Lucrative in Long-Run Amid Local Economic and Global Uncertainties Increasing Policy Growing Demand for Infrastructure Talent & Practitioner Support Healthcare Expansion Cost Efficiency 19
Slide 21: Appendix
Appendix EC Healthcare Som
Slide 22: Key Financial Metrics
Appendix Key Financial Metrics For the year ended For31 March the six months ended 30 September FY24 1H FY25 1H Changes Basic Earnings per share (HK cents) 0.6 1.2 +100% EBITDA margin 9.8% 12.0% +2.2 p.pt Net profit margin 1.0% 2.0% +1.0 p.pt Dividend per share for the year (HK cents) 0.5 1.0 +100%
Slide 23: Disclaimer
Appendix Disclaimer This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities (the “Securities”) of EC Healthcare (the "Company") or any of its subsidiaries or affiliates (together, the “Gr