Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — Cleopatra Hospitals Group — Q1 2023 Earnings Presentation
44 slides from Cleopatra Hospital's earnings presentation, 2023
Slide 1: Cleopatra Hospitals Group Investor Presentation 1Q 2023
Cleopatra Hospitals Group Investor Presentation 1Q 2023
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 Macro Environment & CHG Investment Story 2 Performance Review 3 Business Updates 4 Governance & Shareholder Information 5 Appendix
Slide 4: Our Mission & Values
Our Mission & Values — We put our patients first by providing high quality healthcare services with a focus on patient safety and quality of outcomes while enhancing the quality of life of our patients — We focus on creating sustainable growth with positive measurable impact on our stakeholders and
Slide 5: A Unique Investment Story
A Unique Investment Story • Leading integrated healthcare • Group-wide tenders in provider in Egypt with track pharmaceuticals and medical record of acquiring and consumables that drive scale cost integrating leading operating efficiencies and improve margins hospital assets • Scale volume benefits
Slide 6: Growing Market with Strong Long-term Prospects
Growing Market with Strong Long-term Prospects • Highly fragmented market with a Select Emerging Markets – Health Egypt’s Number of Beds Breakdown limited number of institutionalized Expenditure As A Percentage Of GDP (2022) and strong brand players Median Percentage Egypt’s health spending has incr
Slide 7: A Diversified Healthcare Services Group
A Diversified Healthcare Services Group • Cleopatra Hospitals Group is Egypt’s first and largest private hospital group by number of hospital beds and operating hospitals and consists of six operational Other hospitals, one brownfield hospital, two polyclinics, and a leading IVF Centre all in Surger
Slide 8: Broad Network Coverage in Greater Cairo
Broad Network Coverage in Greater Cairo Leveraging a growing footprint, CHG continues to penetrate new segments of the population and provide high quality care to currently underserved areas of Greater Cairo 275 Thousand 219 Thousand 14 Thousand 9 Thousand 411 Thousand Cases Served* Paid Consultatio
Slide 9: CHG's Journey History & Timeline
CHG’s Journey History & Timeline The Evolution of CHG from a Single Asset into one of the Largest Hospital Platform in the Region The first asset and the Group’s Flagship CHG implements its first CHG announces Cleopatra Hospital, satellite feeder network to CHG signed a Letter of Intent brownfield p
Slide 10: Healthcare Provider of Choice
Healthcare Provider of Choice Having been amongst the first private healthcare providers to recognize the attractiveness of the Egyptian healthcare industry, the Group has played a central role in institutionalizing the sector and promoting its growth and development over the years Capital Resources
Slide 11: Clearly Defined Core Growth Strategy
Clearly 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 ma
Slide 12: Diversified Service Offering and Revenue Stream
Diversified Service Offering and Revenue Stream CHG delivered a strong 1Q23’ performance, driven by pure core business growth surpassing 2022 New Revenue Stream momentum. Hospital Margins Surpass Pre-Pandemic Levels Despite 1Q22's High Base Effect. as of Q4 2022 71% 3% 17% 5% 3% Physical Therapy, Lo
Slide 13: CHG 1Q 2023 Financial Highlights
CHG 1Q 2023 Financial Highlights As CHG transitioned beyond the Covid-19 pandemic and witnessed a remarkable surge in its business throughout 2022, management has been diligently focused on sustaining this upward trajectory throughout 2023 by consistently reinforcing the Group’s core EGP 777 mn ↑38%
Slide 14: 1Q 2023 in Review
1Q 2023 in Review Cleopatra Investor Presentation 1Q 2023 14
Slide 15: Financial Performance in 1Q 2023
Financial Performance in 1Q 2023 CHG recorded historic quarterly revenue of EGP 777mn in 1Q23, with 22% YoY growth compared to 1Q22. Excluding Covid-related revenue, the company experienced an impressive 38% growth in its core-business, driven by increased patient volumes in outpatient, inpatient, a
Slide 16: Outpatient Volumes Growth Trajectory
Outpatient Volumes Growth Trajectory The Group positioned two polyclinics strategically in underserved suburban regions of Cairo, providing top-quality healthcare services for patients in newly developed areas. In 1Q23, the polyclinics generated EGP 27mn in revenue, showing a significant 31% growth
Slide 17: Group Revenue Contribution in 1Q 2023
Group Revenue Contribution in 1Q 2023 Cleopatra (CHC), Cairo Specialized (CSH), and Al Shorouk Hospitals (ASH) all witnessed consistent y-o-y growth in 1Q23 supported by expanding volumes and increasingly optimized case mix. Notably, Since AKH’s transformation into a multispecialty Surgical Center o
Slide 18: Financial Performance of Flagship Hospitals
Financial Performance of Flagship Hospitals All CHG's facilities showcased year-over-year growth, bolstered by increased volumes and optimized case mixes. CSH posted over 35% top-line growth in 1Q23, driven by a rise of over 20% in outpatients, inpatients, emergency patients, surgical procedures, an
Slide 19: Key Revenue Drivers (i)
Key Revenue Drivers (i) Both patient volumes and case mixes across CHG facilities have improved in 1Q23. The Group saw overall cases served growth of 5%, fueled by growth rates of 9%, 14%, and 11% in outpatients, inpatients, and surgical procedures respectively. This growth trend, combined with CHG'
Slide 20: Key Revenue Drivers (ii)
Key Revenue Drivers (ii) In 1Q23, CHG implemented a structured and blended price increase across its services, while pricing billable consumables in real time to account for price fluctuations throughout 2023. This approach allowed CHG to offset the loss of high-margin Covid-related business as well
Slide 21: Transformation Review
Transformation Review Cleopatra Investor Presentation 1Q 2023 21
Slide 22: Overview of CHG's Transformation Agenda
Overview of CHG’s Transformation Agenda Short – Medium Term Horizon 2021 2022 2023 2024 Sky Hospital – Completion of hospital’s remaining Hospital’s first year of operations (25 Management agreement terms and Brownfield Project conditions were signed and works years management contract) with the • O
Slide 23: The Group's Centers of Excellence
The Group’s Centers of Excellence Defining Centers of Excellence Select Examples of CHG’s Centers of Excellence Competitive Defined Scope & Sales Nursing & Residents Advantage & Focus Team Differentiation Consumables Medical Equipment & Payor Recognition Planning Technology Medical & Branding & Mark
Slide 24: Centers of Excellence Development Throughout 2022
Centers of Excellence Development Throughout 2022 Cleopatra Investor Presentation 1Q 2023 24
Slide 25: Market & Competition Analysis
Market & Competition Analysis Investment & Strategy Expand geographical presence in new underserved areas Patient Focused Marketing and product development Volume driven strategy aiming to attract both patients and cities (New Cairo , October) through Hospitals, with emphasis on patient experience,
Slide 26: Cleopatra October Hospital
Cleopatra October Hospital Facility Overview Legal Arrangement Current Service Offering Capex • 18-year usufruct • The largest operating • Estimated at EGP agreement with facility in the Group 300mn, investments will Hospital’s owners with today, standing at be geared towards an option for renewal a
Slide 27: Sky Hospital
Sky Hospital Facility Overview Legal Arrangement Current State Capex • 27-year Management • CHG assumed the • Estimated at EGP 1.7bn agreement with Sky facility in a Core & Shell that are to be invested Hospital’s owners with state in Dec. 2021 over 3 years. an option for renewal at • Management on
Slide 28: Expanding CHG's Digitalization Agenda
Expanding CHG’s Digitalization Agenda The Group recognizes digitalisation as a key driver for future growth. Over the last few years, CHG has embarked on a digital transformation strategy, which aims to introduce the latest digital solutions available to enhance all aspects of the Group’s day-to-day
Slide 29: Digital Transformation Approach
Digital Transformation Approach Cleopatra Investor Presentation 1Q 2023 29
Slide 30: Leveraging on Clinysis' Successful Roll-Out
Leveraging on Clinysis’ Successful Roll-Out Patients’ Engagement Platforms Website Social Media CHG Mobile App CHG Video Call App Appointment booking is also available Allows patients to book appointments on CHG’s mobile app across all of its online at all CHG hospitals and clinics. facilities. Cent
Slide 31: Launch of Cleopatra October
Launch of Cleopatra October Cleopatra October Hospital Official Public Launch Event Cleopatra Investor Presentation 1Q 2023 31
Slide 32: Launch of Cleopatra October
Launch of Cleopatra October Cleopatra October Hospital Official Public Launch Event Cleopatra Investor Presentation 1Q 2023 32
Slide 33: Launch of Dental Center of Excellence
Launch of Dental Center of Excellence Cleo Dent at Cleopatra Hospital Cleopatra Investor Presentation 1Q 2023 33
Slide 34: Governance & Shareholder Information
Governance & Shareholder Information Cleopatra Investor Presentation 1Q 2023 34
Slide 35: Governance (I)
Governance (I) The Group’s Board of Directors provides the necessary oversight and combination of expertise to thoroughly oversee the Group’s corporate governance framework, a cornerstone of the Group’s long-term success and value creation. Board of Directors Chairman Executive Board Member Care Hea
Slide 36: Governance (II)
Governance (II) 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-wide medical council corruption with a clear anti-bribery and anti-corruption physicians and instead
Slide 37: CLHO Trading Analysis
CLHO Trading Analysis CHG’s 2023 Price Performance (Rebased to 100) 6 Month VWAP 3 Month VWAP 1 Month VWAP 10 Days Closing July 26th 140 4.86 4.55 4.54 4.56 4.15 7,00 0,000 120 6,00 0,000 100 5,00 0,000 80 4,00 0,000 60 3,00 0,000 40 2,00 0,000 20 1,00 0,000 - - 1/2/2022 2/2/2022 3/2/2022 4/2/2022 5
Slide 38: Appendix
Appendix Cleopatra Investor Presentation 1Q 2023 38
Slide 39: Balance Sheet and Leverage
Balance Sheet and Leverage Balance Sheet Summary Cash Flow movement 1Q 2023 Cash Flow Bridge in EGPM Cleopatra Investor Presentation 1Q 2023 39
Slide 40: Cash Conversion Cycle
Cash Conversion Cycle Days Inventory Outstanding (DIO) Days Credit Sales Outstanding (DSO) 66 62 97 91 86 37 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Days Payables Outstanding (DPO) Cash Conversion Cycle 46 47 117 104 107 19 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Cleopatra Investor Presentation
Slide 41: Consolidated Income Statement
Consolidated Income Statement All figures in EGP mn 1Q23 1Q22 % change Revenues 776.9 636.9 22% Cost of sales (513.3) (415.0) 24% Gross profit 263.5 222.0 19% Gross Profit Margin 34% 35% General & administrative expenses (115.2) (102.1) 13% Cost of acquisition activities (0.5) (0.8) -35% Provisions
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP mn 31 December 2022 31 March 2023 Non-current assets Fixed assets 1,567.3 1,647.7 Intangible assets 423.4 422.9 Right of use 149.2 168.6 Payment under investment 4.2 4.2 Investment in associates 3.8 3.8 Total non-current assets 2,147.9 2,247.3 Current as
Slide 43: Consolidated Cashflow Statement
Consolidated Cashflow Statement All figures in EGP mn 31 March 2022 31 March 2023 Cash flow from operating activities: Profit before tax 129.8 139.5 Adjustments for: Depreciation 38.1 36.7 Right of use depreciation - - Amortization of intangible assets 4.0 4.0 Allowance for impairment of current ass
Slide 44: Thank you
Thank you INVESTOR RELATIONS CONTACTS SHAREHOLDER INFORMATION Telephone: +2 01000077893 EGX: CLHO.CA E-mail: waleed.hamed@cleohc.com Listed: June 2016 https://www.cleopatrahospitals.com/en/investors/ Shares Outstanding: 1.6 billion Cleopatra Investor Presentation 1Q 2023 44
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