Middle East Healthcare Company · TADAWUL:4009
Middle East Healthcare — Q1 2020 Earnings Presentation
15 slides from Middle East Healthcare's earnings presentation, March 2020
Slide 1: Middle East Healthcare Company (MEAHCO) Investor Presentation – March 2020
Middle East Healthcare Company (MEAHCO) Investor Presentation – March 2020 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 ~90% 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. 2020 • 217 beds • 400 beds • 300 beds • 300 beds • 150 beds • 20 clinics • 150 beds Notes • Based on licensed bed capacity. Operational bed capaci
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 Accredited In process In process Accredited Accre
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 500 EBITDA EBITDA margin Net profit Net profit margin 400 60 11.6% 20% 25 6% 4.9% 50 4.2% 5% SAR million 11.8% 20 300 15% SAR million SAR million 40 4% 15 200 30 10% 3% 10 20 2% 100 5% 10 5 1% 0 0 0%
Slide 9: Revenue structure
Revenue structure Revenue breakdown by service Revenue breakdown by clientele GPM breakdown by service 1Q19 1Q20 Insurance Ministry of Health Cash Others 1Q19 1Q20 300 100% 4% 3% 40% 250 18% 20% 80% 30% SAR million 200 60% 30% 27% 150 20% 100 40% 50 48% 50% 10% 20% 0 IP OP Pharmacy Trading & 0% 0% A
Slide 10: Operational KPIs
Operational KPIs Performed surged vs. ALOS Patients’ evolution Utilisation rate 10,000 Number of inpatients 100% 8,000 20,000 80% 66% 15,000 56% 6,000 60% Bed utilisation 4,000 10,000 40% 2,000 5,000 20% 0 0 0% 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 5 Number of outpatients 100% 4.18 4 3.50 400,000 80% 58% 56
Slide 11: Balance sheet and cash cycle
Balance sheet and cash cycle Cash conversion cycle Receivables, Receivables split Leverage 1Q20 1,400 1,272 Net debt/Equity (x) 350 1,200 307 0.8 291 Days on Hand (DoH) 300 1,000 SAR million 250 800 0.6 200 143 600 0.4 150 126 400 100 0.2 50 200 0 0 0.0 Receivables Payables Inventory Cash cycle 1Q20
Slide 12: Employees statistics
Employees statistics Number of employees Headcount split by profession Saudisation rate 6,000 5,549 Doctors Nurses Allied Health Admin Staff Saudi Non-Saudi 5,105 5,000 16% 4,000 32% 3,000 1Q20 44% 1Q20 2,000 1,000 28% 68% 0 1Q19 1Q20 12% 12
Slide 13: Capex and expansion plan
Capex and expansion plan • SGH Riyadh Outpatient Tower and Beds Expansion ➢ 134 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 14: Shareholder information
Shareholder information Stock Data: Shareholder structure Foreign ownership* Bloomberg / Reuters: MEH AB / 4009.SE Outstanding shares: 92,040,000 Free float, 60% 38.2% 49.0% Free float: 38.1% 50% Mkt. Cap: USD 691 million 40% 3M ADVT: USD 2.1 million 30% International 20% 14.1% Finance Corporation,
Slide 15: Thank you
SS (Sto) dyasall Glo wall Ssiul AS MIDDLE EAST HEALTHCARE COMPANY (MEAHCO) SAUDI GERMAN HOSPITALS GROUP ilolll gageuull Glut egoro Thank you 15
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