Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — Cleopatra Hospitals Group — H1 2024 Earnings Presentation
34 slides from Cleopatra Hospital's earnings presentation, 2024
Slide 1: Transforming Healthcare in Egypt
Transforming Healthcare in Egypt Investor Presentation H1 2024
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 relating
Slide 3: Contents
CONTENTS 1 Cleopatra Hospitals Group Highlights 2 Macro Environment 3 Competitive Advantages 4 Growth Strategy & New Business 5 Governance & Management Information 6 H1 2024 in Review 7 Appendix
Slide 4: Cleopatra Hospitals Group Highlights
Cleopatra Hospitals Group Highlights 4
Slide 5: Our Mission, Vision and Values
Our Mission, Vision and Values ➢ A Patient-First Approach to Healthcare Our Mission • Delivering Leading Quality Services • Ensuring Safety of all Stakeholders • Growing Beds Supply & Expanding their Distribution • Improving Quality of Lives Everyday ➢ Sustainable Growth & Cross-Asset Collaboration
Slide 6: Cleopatra Hospitals Group Reports Record 1H2024 Results
Cleopatra Hospitals Group Reports Record 1H2024 Results CHG’s consolidated top-line H1 2024 Snapshot reached EGP 2,372mn in 1H2024, 50% higher than 1H2023, setting new historical records on both quarterly and half-year performances. EGP 2,372 mn EGP 864 mn Consolidated revenues in 1H24 Gross Profit
Slide 7: CHG enjoys a Broad Network spread Across Greater Cairo
CHG enjoys a Broad Network spread Across Greater Cairo, penetrating underserved regions Leveraging a growing footprint, CHG continues to penetrate new segments of the population and provide high quality care to underserved regions across Greater Cairo Leveraging a growing footprint, CHG continues to
Slide 8: The Group is a Fast Growing, Diversified Healthcare Services Provider
The Group is a Fast Growing, Diversified Healthcare Services Provider Group Revenue, Net Profit and Margins | EGP mn Revenue CAGR: 19% 3,595 2,372 2,549 2,614 27.9% 1,990 27.1% 29.9% 27.1% 26.5% 26.1% 29.1% 1,798 1,585 763 954 690 709 502 540 414 2019 2020 2021 2022 2023 1H23 1H24 Revenue Adjusted
Slide 9: Macro Environment
Macro Environment 9
Slide 10: Large, Attractive, and Resilient Growth Market
Large, Attractive, and Resilient Growth Market Egypt’s health spending has increased at a greater pace over the past Beds, Doctors, & Nurses Ratios per 1,000 population regionally decade and is now above global and EM median as of 2022 • Doctor/1,000 population ratio for Egypt is better Egypt GCC ME
Slide 11: Growing Population & Prevalence of Lifestyle Diseases
Growing Population & Prevalence of Lifestyle Diseases Egypt’s Population and Age Profile Composition Forecast • The current population of Egypt stands at 105 mn (as of 2023) rising from 80 mn in 2010, a CAGR of over 2% for this period. Projections forecast Egypt’s population to reach 130 mn by 2030
Slide 12: Competitive Advantages
Competitive Advantages 12
Slide 13: A leading healthcare services platform with sustainable competitive advantages
A leading healthcare services platform with sustainable competitive advantages CHG was a pioneering force in Egypt's private healthcare sector, recognizing its potential early on. The Group introduced an innovative 360-degree integrated management system, focused on delivering quality patient care a
Slide 14: Key Pillars That Make Up CHG's Definition of Centers of Excellence
A High-Level Perspective on the Key Pillars That Make Up CHG’s Definition of Centers of Excellence Defining Centers of Excellence Select Examples of CHG’s Centers of Excellence Competitive Defined Scope & Nursing & Residents Advantage & Sales Focus Team Differentiation Consumables Medical Equipment
Slide 15: Growth Strategy & New Business
Growth Strategy & New Business 15
Slide 16: Defined Core Growth Strategy
Defined Core Growth Strategy Integrating the platform to Leveraging payor and achieve higher efficiencies supplier relationships Geographic expansion in Egypt Enhancing utilization and linked to following optimizing existing capacity Establish centers of while expanding capacities and the main payor
Slide 17: Cleopatra October Hospital – CHG's Flagship Hospital of West Cairo
Cleopatra October Hospital – CHG’s Flagship Hospital of West Cairo & the Latest Addition… Facility Overview CHG has transformed the hospital into a world-class tertiary hospital, specialized Oct: Added Operating Rooms in orthopedic and spine surgeries with the biggest physiotherapy rehabilitation, P
Slide 18: Cleopatra October surpassed expectations in revenue and margins for H1 2024
…has surpassed expectations in terms of revenue and margins for H1 2024 Cleopatra October Hospital, now fully integrated in CHG’s operational and financial systems, is progressing well in its ramp-up phase following its transformation into a full-scale tertiary musculoskeletal hospital Cleopatra Oct
Slide 19: Network expansion through Sky Hospital in East Cairo
CHG continues its network expansion into underserved regions through Sky Hospital – East Cairo’s new State-of-the-Art Flagship project In line with CHG's strategy to meet growing demand for quality healthcare services that stems from underserved regions, the Group has is in the process of launching
Slide 20: First regional partnership in Saudi Arabia
With a plethora of experience, CHG ventures into a new expansion model and prepares for its first regional partnership in Saudi Arabia CHG has ventured into a strategic partnership with Mumtada Medical Company to support the launch a new 188-bed rehabilitation and LTC facility in Riyadh, KSA. Levera
Slide 21: Governance & Management Information
Governance & Management Information 21
Slide 22: CHG employs best-in-class corporate governance standards
CHG employs best-in-class corporate governance standards that are in line with the highest international standards… OPERATIONS ABC No Referral Fees Medical Council • CHG has a zero-tolerance approach to bribery and • CHG does not pay any referral fees or kickbacks to • CHG recently launched a group-
Slide 23: Board of directors dominated by independent and non-executive directors
… supported by a board of directors dominated by experienced independent and non-executive directors… The Group’s Board of Directors provide the necessary oversight and combination of expertise to thoroughly oversee the Group’s corporate governance framework, a cornerstone of the Group’s long-term s
Slide 24: Led by a highly competent management team
… and led by a highly competent and ambitious management team comprised of accomplished industry veterans with vast experience in the healthcare sector The Group is managed by a seasoned team that brings along deep industry experience to their respective positions gained in leading regional and mult
Slide 25: H1 2024 in Review
H1 2024 in Review 25
Slide 26: Historical Financial Performance Overview
Historical Financial Performance Overview H1 2024 Snapshot ▪ CHG’s consolidated top line reached EGP 2,372mn in 1H2024 and EGP 1,191mn in 2Q2024, 50% higher than 1H2023 and 47% higher than 2Q2023 respectively, marking historical highs on both quarterly and half-year performances. Growth was fueled b
Slide 27: Group Revenue Contribution by Hospital & Segment
Group Revenue Contribution by Hospital & Segment Revenue Contribution by Hospital – 1H23 CHG’s inpatient services, along Revenue Contribution by Segment – 1H23 with surgical and cardiac 2% catheterization procedures 3% 5% 14% contribute the highest to overall 21% revenue, holding a total of 49% in 6
Slide 28: Core Business Driven Growth
Core Business Driven Growth Volume, ARP, & Revenue | Volume, ARP, & Revenue | Volume, ARP, & Revenue | Surgeries Outpatients Laboratory EGP 18,006 Rev. in EGP Mn. Vol. In 000’ Rev. in EGP Mn. Vol. In 000’ Rev. in EGP Mn. EGP 24,481 500 600 EGP 434 EGP 457 250 1,00 0 EGP 217 EGP 245 250 20,0 00 450 9
Slide 29: CLHO.CA Share Performance
CLHO.CA Share Performance CHG’s Price Performance | Rebased to 100 Valuation Multiples 1 Month VWAP Closing Sep 4th 14.1x 14 6.78 6.41 12.4x 10.8x 8.9x 9.0x 12 7.6x EV/EBITDA Valuation 10 Multiples (x) Volume (mn) 8 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 H1 2024 6 33.9x 4 29.8x 23.8x 2 P/E 17.7x 15
Slide 30: Appendix: Financial Statements
Appendix: Financial Statements 30
Slide 31: Consolidated Income Statement
Consolidated Income Statement Income Statement | EGP mn 2Q2023 2Q2024 % change 1H2023 1H2024 % change Revenues 807.7 1191.2 47.5% 1584.5 2372.4 59.7% Cost of sales (551.1) (763.0) 38.4% (1062.8) (1508.5) 41.9% Gross profit 256.5 428.2 66.9% 521.7 863.8 65.6% Gross Profit Margin 32% 36% 33% 36% Gener
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet | EGP mn 31 December 2023 30 June 2024 Non-current assets Fixed assets 2,176.6 2,786.5 Intangible assets 407.3 406.3 Right of use 133.2 142.4 Payment under investment - - Investment in associates 3.8 3.8 Total non-current assets 2,720.9 3,339.0 Current assets
Slide 33: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement | EGP mn 30 June 2023 30 June 2024 Cash flow from operating activities: Profit before tax 258.7 481.4 Adjustments for: Depreciation 73.5 87.3 Right of use depreciation - - Amortization of intangible assets 7.9 1.0 Allowance for impairment of curre
Slide 34: Thank you
Thank you INVESTOR RELATIONS CONTACTS SHAREHOLDER INFORMATION Tel: +20 0122 3333302 EGX: CLHO.CA Email: farah.sami@cleohc.com Listed: June 2016 Website: https://www.cleopatrahospitals.com/en/investors/ Shares Outstanding: 1.4 billion 34
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