Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — Cleopatra Hospitals Group — FY2022 Earnings Presentation
47 slides from Cleopatra Hospital's earnings presentation, 2023
Slide 1: Cleopatra Hospitals Group Investor Presentation FY 2022
Cleopatra Hospitals Group Investor Presentation FY 2022
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: 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 seven operational hospitals, 1 brownfield hospital, and two polyclinics in addition to a Other leading IVF Centre
Slide 7: 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 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 Cleopatra Hospitals Group, is the largest private hospital group in Egypt by number of beds
Slide 9: Diversified Service Offering and Revenue Stream
EBITDA contribution forecaset cX%. Diversified Service Offering and Revenue Stream CHG delivered a strong FY 2022 performance, bolstered by core business growth completely New Revenue Stream offsetting COVID-19-related business from 2021 as of Q4 2022 71% 3% 18% 5% 3% Physical Therapy, Long Term Car
Slide 10: 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 11: Healthcare Provider of Choice
Healthcare Provider of Choice Creating a one-stop-shop that is seamlessly integrated across all our assets comes as a result of the Group’s persistence in keeping our patients at the center of everything we do, while at the same time ensuring to drive value to all CHG’s key stakeholders. With that f
Slide 12: CHG FY2022 Financial Highlights
CHG FY2022 Financial Highlights CHG achieved record quarterly results in 4Q22 generating revenues of EGP 712mn, 10% growth against 4Q21 despite the loss of Covid related revenue. On a full year basis, Group revenues reached EGP EGP 2,614 mn ↑19% Consolidated revenues in FY2022 Non-COVID-19 related 2
Slide 13: FY2023 Trading Update
FY2023 Trading Update For the first nine weeks of 2023, the Group Outpatients | in 000’ Surgeries | in 000’ generated over EGP 620mn in revenues with year-on-year growth of 24% against the same period in 2022. Excluding Covid related revenue, year on year growth exceeded 40% for the first 9 weeks of
Slide 14: 2022 in Review
2022 in Review Cleopatra Investor Presentation FY 2022 14
Slide 15: Financial Performance in FY2022
Financial Performance in FY2022 In a strategic effort to bolster the Group's core business and position it for growth following the pandemic, CHG achieved its highest ever quarterly revenue of EGP 712mn in Q4 2022, resulting in a total of EGP 2,614mn for FY22. These results represent a 10% increase
Slide 16: Patient Volumes Recovery Journey
Patient Volumes Recovery Journey The Group's polyclinics continue to serve a vital role in feeding its hospitals' feeder network by increasing accessibility to quality healthcare services to underserved suburban regions. In FY22, both polyclinics maintained their growth trajectories, recording 18% i
Slide 17: Group Revenue Contribution in FY2022
Group Revenue Contribution in FY2022 Cleopatra (CHC), Cairo Specialized (CSH), and Al Shorouk Hospitals (ASH) all witnessed consistent y-o-y growth in the 2022 supported by expanding volumes and increasingly optimized case mix. NBH managed to close the gap in comparison to its performance in 2021 by
Slide 18: Financial Performance of Flagship Hospitals
Financial Performance of Flagship Hospitals The Group's integration model framework allowed CHG to mitigate the negative effects of EGP devaluations in 2022, resulting in limited impact. CHG's supply chain team proactively built strategic stocks of key supplies at favorable prices starting in 4Q21,
Slide 19: Direct vs. Indirect COVID Contribution
Direct vs. Indirect COVID Contribution Indirect COVID revenues include both, revenues generated by suspected COVID-19 patients at its regular facilities, as well as tests performed as part of the extraordinary protocols introduced during the pandemic (for example, chest CTs for all surgical patients
Slide 20: Key Revenue Drivers (i)
Key Revenue Drivers (i) The Group's strength in its core business allowed for a swift transition from the pandemic, driven by number of cases served which includes outpatients, inpatients, and emergency patients, CHG reflected record quarterly number of cases served of 306k in 4Q22 and an annual rec
Slide 21: Key Revenue Drivers (ii)
Key Revenue Drivers (ii) CHG’s strength in its core business, which is driven by its cases served*, was instrumental in their swift rebound post-pandemic. Their focus on providing quality healthcare services has enabled the Group to establish a reputation for excellence that their patients trust. Th
Slide 22: Transformation Review
Transformation Review Cleopatra Investor Presentation FY 2022 22
Slide 23: 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 works years management contract) with the conditions were signed and • O
Slide 24: 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 25: Centers of Excellence Development Throughout 2022
Centers of Excellence Development Throughout 2022 Cleopatra Investor Presentation FY 2022 25
Slide 26: Latest Medical Additions to CHG's Centers of Excellence
Latest Medical Additions to CHG’s Centers of Excellence Cleopatra Investor Presentation FY 2022 26
Slide 27: Robotic Surgeries CoE
Robotic Surgeries CoE Advantages Vision On June 8, CHG became the first private healthcare provider in Egypt to introduce a robotic surgery unit within their network. Robotic surgeries are Increased Precision / Reduced a major step forward in the performance of advanced and complicated Risk Of surge
Slide 28: Oncology Center of Excellence
Oncology Center of Excellence Advantages Vision Management successfully concluded an agreement with one of Egypt’s leading Oncology practices, setting up a one of its kind Oncology Center of 360-degree One-stop of patients’ shop with Excellence across the Group’s hospitals. The agreement entails set
Slide 29: Nephrology Center of Excellence
Nephrology Center of Excellence Advantages Vision CHG’s management successfully finalized an agreement with one of the nation’s top Nephrology practices. By virtue of this agreement, Cleopatra 360-degree One-stop of patients’ shop with Hospitals Group will now expand its service offering with regard
Slide 30: 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 31: Expanding CHG's Geographic Footprint
Expanding CHG’s Geographic Footprint Location 6th October 6th October location 2021 Latest Group Additions Location New Cairo # of Beds ~240 Project Completion 2024 Cleopatra Investor Presentation FY 2022 31
Slide 32: Haven Hospital
Haven Hospital Facility Overview Legal Arrangement Current Service Offering Capex • 18-year usufruct • The largest operating • Estimated at EGP agreement with Haven facility in the Group 300mn, investments will Hospital’s owners with today, standing at be geared towards an option for renewal at c.30
Slide 33: 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 34: 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 35: Digital Transformation Approach
Digital Transformation Approach Cleopatra Investor Presentation FY 2022 35
Slide 36: 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 37: Governance & Shareholder Information
Governance & Shareholder Information Cleopatra Investor Presentation FY 2022 37
Slide 38: 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 The Group’s board of directors includes
Slide 39: 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 40: CLHO Trading Analysis
CLHO Trading Analysis CHG’s 2022 Price Performance (Rebased to 100) 2nd round of Buyback 160 Program commenced Haven Hospital Suez Hospital and 30000000 Disclosure Shares Cancellation 140 Disclosures Buyback activity 25000000 120 paused 20000000 100 80 15000000 60 10000000 40 5000000 20 0 0 1/2/2022
Slide 41: Appendix
Appendix Cleopatra Investor Presentation FY 2022 41
Slide 42: Balance Sheet and Leverage
Balance Sheet and Leverage Balance Sheet Summary Cash Flow Bridge for FY 2022 EGPM Balance Sheet Summary Dec-21 Dec-22 Cash Flow Bridge in EGPM Cash 846 346 Inventory 51 108 Debtors & other Debt balance 576 681 Current Assets 1,473 1,135 Intangible Assets 426 423 Non-Current Assets 1,534 1,724 Total
Slide 43: Cash Conversion Cycle
Cash Conversion Cycle Days Inventory Outstanding (DIO) Days Credit Sales Outstanding (DSO) 66 97 77 33 Dec-21 Dec-22 Dec-21 Dec-22 Days Payables Outstanding (DPO) Cash Conversion Cycle 46 117 101 8 Dec-21 Dec-22 Dec-21 Dec-22 Cleopatra Investor Presentation FY 2022 43
Slide 44: Consolidated Income Statement
Consolidated Income Statement All figures in EGP mn 4Q2021 4Q2022 % change FY2021 FY2022 % change Revenues 648.7 712.2 10% 2549.3 2614.4 3% Cost of sales (408.4) (474.6) 16% (1618.6) (1741.1) 8% Gross profit 240.3 237.6 -1% 930.7 873.3 -6% Gross Profit Margin 37% 33% 37% 33% General & administrative
Slide 45: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP mn 31 December 2021 31 December 2022 Non-current assets Fixed assets 1,351.7 1,567.3 Intangible assets 425.5 423.4 Right of use 174.7 149.2 Payment under investment 5.7 4.2 Investment in associates 2.2 3.8 Total non-current assets 1,959.8 2,147.9 Current
Slide 46: Consolidated Cashflow Statement
Consolidated Cashflow Statement All figures in EGP mn 31 December 2021 31 December 2022 Cash flow from operating activities: Profit before tax 534.6 449.7 Adjustments for: Depreciation 113.9 133.1 Right of use depreciation - - Amortization of intangible assets 15.9 15.9 Allowance for impairment of c
Slide 47: 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 FY 2022 47
Cleopatra Hospitals Group — FY2022 Earnings Presentation on 6ix