Middle East Healthcare Company · TADAWUL:4009
Middle East Healthcare — Q4 2020 Earnings Presentation
28 slides from Middle East Healthcare's earnings presentation, February 2021
Slide 1: Investor's presentation 4Q2020
Investor’s presentation 4Q2020 February 2021 saudigermanhealth.com 920007997
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 relati
Slide 3: Table of Contents
MEAHCO At a glance 1 Turnaround Revolution 2 Key Financial Indicators 3 Ta b l e o f C o n t e n t s Ambitious Expansion Strategy 4 Shareholders Information 5 Employees Statistics 6 Financials Snapshot 3 saudigermanhealth.com 920007997 7
Slide 4: MEAHCO at a Glance
@1.0ll cniLallll nagsuull 2 Saudi German Health MEAHCO at a Glance
Slide 5: MEAHCO at a Glance
MEAHCO at a Glance -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, to capita
Slide 6: Geographic Footprint
Geographic Footprint Asser Madinah Beverly Clinics Establishment 2000 Establishment 2003 Establishment 2018 400 Licensed Beds 300 Licensed Beds 20 Clinics 291 Operational Beds 197 Operational Beds 89 Clinics 58 Clinics 01 02 03 04 05 06 07 Jeddah Riyadh Hail Dammam Establishment 1988 Establishment 2
Slide 7: Hospitals under management contract
Hospitals under management contract ➢SGH Yemen – est. 2006 ➢SGH Dubai – est. 2012 ➢SGH Cairo – est. 2015 ➢SGH Sharjah – est. 2018 ➢SGH Ajman – est. 2019 Operational Pipeline ➢SGH Alex West (Egypt) ➢SGH Giza (Egypt) ➢SGH Lahore (Pakistan) ➢SGH Islamabad (Pakistan) ➢SGH Karachi (Pakistan) ➢BTPL Lahore
Slide 8: Turnaround Revolution
Turnaround Revolution 8 saudigermanhealth.com 920007997 8
Slide 9: Turnaround Revolution
Turnaround Revolution Integration Digital Transformation Diversification Accreditation Restructure Technology Patients Cost Satisfaction Efficiency 9 saudigermanhealth.com 920007997 9
Slide 10: Accreditation
Accreditation 10 saudigermanhealth.com 920007997 10
Slide 11: Accreditation
Accreditation Jeddah Asser Riyadh Madinah Hail Dammam Accredited Accredited Accredited Accredited In process In process Accredited Accredited Accredited Accredited Accredited In process In process In process In process In process In process In process Accredited Accredited In process Accredited Accr
Slide 12: Key Financial Indicators
Key Financial Indicators 12 saudigermanhealth.com 920007997 12
Slide 13: Key Financial Indicators
Key Financial Indicators Revenue, Revenue growth EBITDA, EBITDA margin Net profit, Net profit margin 500 472 EBITDA EBITDA margin Net profit Net profit margin 407 9.3% 400 75 18.0% 20% 40 10% 15.7% SAR million 74 5.8% 8% 300 15% 30 SAR million SAR million 73 6% 200 10% 20 72 4% 100 5% 10 71 2% 0 70
Slide 14: Operational KPIs
Operational KPIs Number of performed surgeries Utilisation rate Average length of stay 12,000 100% 4 3.71 10,191 3.58 10,000 4 8,108 80% 71% 71% 3 8,000 60% 3 6,000 2 Bed utilisation 40% 2 4,000 1 2,000 20% 1 0 0% 0 4Q19 4Q20 FY19 FY20 4Q19 4Q20 35,000 34,533 100% 5 4.16 4.08 34,000 4 33,000 80% 4 3
Slide 15: Revenue Structure
Revenue Structure Revenue breakdown by service Revenue breakdown by clientele GPM breakdown by service 4Q19 4Q20 Insurance Ministry of Health Cash Others 4Q19 4Q20 300 281 100% 3% 3% 70% 250 222 19% 17% 60% 80% SAR million 200 50% 28% 28% 37.9% 150 60% 40% 35.8% 34.4% 111 111 100 70 75 40% 30% 50 20
Slide 16: Patients Evolution (Census)
Patients Evolution (Census) Historical trends 4Q19 vs. 4Q20 FY19 vs. FY20 Number of inpatients Number of inpatients Number of inpatients 80,000 20,000 18,671 80,000 70,434 70,000 16,112 70,000 60,000 15,000 56,849 60,000 50,000 50,000 40,000 10,000 40,000 30,000 30,000 20,000 5,000 20,000 10,000 10,
Slide 17: Balance Sheet and Cash Cycle
Balance Sheet and Cash Cycle Cash conversion cycle Receivables, Receivables split Leverage FY20 1,800 1,594 Net debt/Equity (x) 1,600 350 330 314 0.92 1,400 1.0 Days on Hand (DoH) 300 SAR million 1,200 0.8 250 1,000 0.62 200 0.6 800 127 150 111 600 0.4 100 400 0.2 50 200 0 0 0.0 Receivables Payables
Slide 18: Ambitious Expansion Strategy
Ambitious Expansion Strategy 18 saudigermanhealth.com 920007997 18
Slide 19: Expansion and CAPEX
Expansion and CAPEX Riyadh Outpatient Tower Makkah Housing One Day Surgery Hospital 134 beds,160 clinics Capex 114 million To be operational 4Q 35 beds,16 clinics. Capex 194 million 2021 Rent SAR 7 m in 2 years To be operational 2Q 2021 Makkah Hospital Dammam Housing 2Q 2021 300 beds Capex 90 millio
Slide 20: Shareholders Information
Shareholders Information 20
Slide 21: Shareholder's Structure SGH versus TASI Performance
Shareholder's Structure SGH versus TASI Performance 19.96 0.55 11.75 54.7 5.94 7.1 Bait Al-Batterjee International Finance Corporation Local Institutions Foreign Institutions Foreign Retail Local Retail 21
Slide 22: Employees statistics
Employees statistics Headcount split by profession Number of employees Saudization rate Doctors Nurses Allied Health Admin Staff 6,000 Saudi Non-Saudi 5,444 5,436 16% 5,000 4,000 34% FY20 3,000 FY20 47% 25% 2,000 66% 1,000 13% 0 FY19 FY20 22
Slide 23: Board of Directors
Board of Directors Non-Executive Board Members Chairman Independent Board Members Mr. Makarem Batterjee Dr. Khaled Batterjee Mr. Amr Khashoggi Mr. Mohamed Moumena Vice Chairman Board Member Board Member Board Member Eng. Sobhi Batterjee Chairman Mr. Sultan Batterjee Mr. Mohamed Bin Siddiq Board Memb
Slide 24: Financials Snapshot
Financials Snapshot 24
Slide 25: Income Statement Snapshot
Income Statement Snapshot All figures in SAR ،000 31-Dec-20 31-Dec-19 Revenue 1,772,209,616 1,496,646,913 Cost of revenue -1,172,210,458 -1,023,715,843 Gross Profit 599,999,158 472,931,070 Selling and Marketing expenses -31,143,257 -14,777,057 General and Admin. expenses -442,454,388 -354,886,559 Op
Slide 26: Balance Sheet Snapshot
Balance Sheet Snapshot All figures in SAR ،000 31-Dec-20 31-Dec-19 Total Non Current Assets 2,106,138,671 1,944,838,460 Inventories 155,843,192 124,514,002 Accounts Receivable 1,593,721,115 1,108,576,392 Total Current Assets 1,851,315,109 1,360,658,593 Total Assets 3,957,453,780 3,305,497,053 Total
Slide 27: Investor Relations contacts
Stock Data: Bloomberg / Reuters: MEH AB / 4009.SE Outstanding shares: 92,040,000 Free float: 38.2% Mkt. Cap: USD 871 million 3M ADVT: USD 5.3 million Investor Relations contacts: Tamer Nigm Madani Hozaien Director-Strategic Planning & IR Group CFO M:+966543471531 M: +966 55 269 5722 E:TANigm@sghgrou
Slide 28: Thank you
Thank you (Oa:
Middle East Healthcare Company (Saudi German Health) — Q4 2020 Earnings Presentation on 6ix