Lokman Hekim Engurusag Saglik, Turizm, Egitim Hizmetleri Ve Insaat Taahhut A.s. · BIST:LKMNH
Lokman Hekim Engurusag Saglik, Turizm, Egitim Hizmetleri Ve Insaat Taahhut A.s — FY2014 Earnings Presentation
23 slides from Lokman Hekim Engurusag Saglik, Turizm, Egitim Hizmetleri Ve Insaat Taahhut A.s's earnings presentation, March 2015
Slide 1: Healthcare Group 2014 fiscal year results
Healthcare Group 2014 fiscal year results Investor presentation March 2015
Slide 2: Lokman Hekim in 2014
Lokman Hekim in 2014 SALES • We generated TL125M in consolidated net sales, up 16.3% on the year GROSS INCOME • At TL18.0M, our cash gross income grew 65.3% year-on-year EBITDA • We generated cTL13M of EBITDA (+96.3% YoY) with 419bp improvement in margin EBIT • Our EBIT stands at cTL6M growing c2.6x
Slide 3: 2014 summary financials
2014 summary financials Marked improvement across the P&L TLm 2014 2013 Change(%) Sales 125.0 107.4 16.3 Cash cost of sales -107.0 -96.6 10.7 Gains in cash gross Cash gross income 18.0 10.80 65.8 and EBITDA OPEX -5.1 -4.3 19.4 margins EBITDA 12.8 6.5 96.3 Depreciation other income -6.9 -5.4 26.8 Net
Slide 4: 2014 sales by hospital & customer traffic
2014 sales by hospital & customer traffic Breakdown of sales Lokman Hekim Engurusag Saglik Financials and forecasts TLm 2010 2011 2012 2013 2014A Sales 59.8 63.0 96.7 107.4 125 Health services 59.8 62.5 95.9 102.2 115.3 Etlik 21.0 20.1 22.3 22.8 24.1 Sincan 38.8 41.3 43.6 45 49.3 Van 0.0 1.1 29.9 32
Slide 5: Strong growth at all income levels
Strong growth at all income levels Lokman Hekim Engurusag Saglik Financials and forecasts TLm 2010 2011 2012 2013 2014A Sales 59.8 63.0 96.7 107.4 125 Health services 59.8 62.5 95.9 102.2 115.3 Etlik 21.0 20.1 22.3 22.8 24.1 Sincan 38.8 41.3 43.6 45 49.3 Van 0.0 1.1 29.9 32.6 36.4 Van Hayat 0.0 0.0
Slide 6: Profitability
Profitability TL in Millions 20,00 18,00 16,00 14,00 12,00 10,00 8,00 6,00 4,00 2,00 0,00 2010 2011 2012 2013 2014 gross profit operationel profit net profit Our company has performed 32.5 million fixed asset investment in 2013 and 2014.(With respect to 2012, it’s fixed asset increased by 61%) 6
Slide 7: Distributed dividends
Distributed dividends Net Cash Cash Dividend Dividend Gross Cash Cash Dividend Dividend Dividend Rate Net Profit (TL) Distribution Date Dividend Rate (%) TL Yield (%) (%) Rate ( %) 30.06.2014 6,06 969.600 5,15 1.151.848 1,4 84,2 30.05.2013 12,5 2.000.000 10,63 5.367.300 1,9 37,3 Our company is plann
Slide 8: Sales by hospital
Sales by hospital TL in Millions 140 120 100 80 60 40 20 0 2010 2011 2012 2013 2014 Etlik Sincan Van Van Hayat Arbil Van Hayat’s contribution to group sales grows 8
Slide 9: The distribution of the sales in 2014
The disribition of the sales in 2014 The sales of Arbil nearly tripled with Van 2014 respect to previous 31% year (2.8 times) Hayat-Arbil 5% Arbil Sincan 1% 43% Van Hayat 4% Etlik 21% Etlik Sincan Van Van Hayat Arbil The sales of van hayat hospital nearly doubled with respect to previous year. (1.9
Slide 10: Sales by payer
Sales by payer TL in Millions Patients on national insurance are the largest contributors to sales 10
Slide 11: Sales by treatment
Sales by treatment TL in Millions 11
Slide 12: Core EBITDA margin – %, rolling 12-month
Core EBITDA margin – %, rolling 12-month 12
Slide 13: Sales & EBITDA by treatment (TL)
Sales & EBITDA by treatment (TL) 13
Slide 14: Why invest in Turkish healthcare
Why invest in Turkish healthcare Healthcare CAGR in context (%) CEE spending expected to shoot up off low base while Turkey offers sustainable and steady growth 14 Sources: WHO, Industry reports, and Lokman Hekim estimates
Slide 15: Turkish healthcare industry selected data
Turkish healthcare industry selected data Doctors, dentists and nurses per 100K population Number of hospitals – consolidation ahead? FDI to Turkish healthcare sector (US$m) Healthcare “tourists” in Turkey (‘000) 15 Sources: WHO, Industry reports, and Lokman Hekim estimates
Slide 16: Number of hospitals and beds by region in Turkey
According to regions in Turkey, the number of hospitals and beds 1 000 000 100 000 10 000 1 000 100 10 1 Central Eastern Southeast Mediterra Marmara Black Sea Aegean Turkey Anatolia Anatolia Anatolia nean public hospital 414 262 144 122 206 170 199 1 517 private hospital 224 79 27 40 32 81 67 550 pu
Slide 17: Turkish healthcare – state v private
Turkish healthcare – state v private State v private (%) Geographical breakdown of private hospitals Total hospital count as at 2013: 1,469 Private hospital count as at 2013: 506 17 Sources: Turkish Ministry of Health, Industry reports, and Lokman Hekim estimates
Slide 18: Turkish healthcare – general v speciality
Turkish healthcare – general v speciality Breakdown of hospital beds by speciality General v speciality (%) Breakdown of speciality (%) Total bed count as at 2014: 200.0K Speciality bed count as at 2014: 23.1K 18 Sources: Turkish Ministry of Health, Industry reports, and Lokman Hekim estimates
Slide 19: Who pays for healthcare?
Who pays for healthcare? Healthcare spending by payer across OECD (%) 19 Sources: WHO, Industry reports, and Lokman Hekim estimates
Slide 20: Universal health coverage in Turkey
Universal health coverage in Turkey • In 2003, Turkey has started implementing its Health Transformation Program (HTP) with the primary objective establishing universal health coverage (UHC). Some16 health insurance schemes have been consolidated to create what is now called General Health Insurance
Slide 21: Lokman Hekim’s edge
Lokman Hekim’s edge 1 • Focused/dedicated management team and business model targeting Anatolia 2 • Rigorous search to grow in underpenetrated regions of Turkey 3 • Steady organic growth with a strong mid-income client base 4 • Operating leverage favourable with significant upside in CUR; earnings t
Slide 22: Lokman Hekim milestones
Lokman Hekim milestones • Lokman Hekim is established 1996 • Etlik Hospital becomes operational 2002 • Sincan Hospital becomes operational 2008 • IPO on Istanbul Stock Exchange, investments in first Van hospital 2011 • Van Hayat, 2nd hospital in Van becomes operational 2013 • Erbil investments: Erbi
Slide 23: Legal Notice
Legal Notice This document contains " prospective statements". Except for retroactive information, all statements including but not limited to the statements about group’s operations, financial position and business strategies may contain prospective statements. In addition, prospective statements m