Mlp Saglik Hizmetleri As Class B · BIST:MPARK

Mlp Saglik Hizmetleri As Class B — MLP Care — Q1 2020 Earnings Presentation

29 slides from Mlp Saglik Hizmetleri As Class B's earnings presentation, May 28, 2020

  1. Slide 1: MLP Care Q1 2020 Presentation

    MLP Care Q1 2020 Presentation 28 May 2020

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation may contain certain forward-looking statements concerning MLP Care’s future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently ava

  3. Slide 3: Muharrem Usta, Chairman & CEO

    Muharrem Usta Chairman & CEO 3

  4. Slide 4: Snapshot of Pandemic in Turkey as of May 27th, 2020

    Snapshot of Pandemic in Turkey as of May 27th, 2020 Total Deaths Number of Key Dates Tests 1,894,650 4,431  First case announced on March 2.8% Fatality 11th. Schools closed since March 16th.  All hospitals meeting certain criteria declared pandemic Pattients in Number of hospitals on March 20th. C

  5. Slide 5: Turkey is Ahead of Many Developed Countries in Healthcare Investment

    Turkey is Ahead of Many Developed Countries, With investments in Healthcare For Many Years The number of intensive care beds per Number of beds per 1,000 people over 100,000 people 60 years old 5

  6. Slide 6: At a Glance: MLP Care Q1 2020 Financial Highlights

    At a Glance: MLP Care Q1 2020 Financial Highlights Adj. EBITDA Revenue  All hospitals started accepting TL 979 million TL 235 million 5% Growth 2% Growth COVID-19 patients in March  Revenue growth despite the COVID-19 pandemic impact  EBITDA margin eroded slightly Net Debt / EBITDA supported by t

  7. Slide 7: At a Glance: MLP Care Operational Highlights

    At a Glance: MLP Care Operational Highlights Two brands and one concept targeting three different price points The largest hospital group in 30 Hospitals in Total with consistently outstanding medical Turkey service quality. 20,000+ Staff 1 ~6,000 Beds in Total 2,200+ Doctors (1/3 are academicians)

  8. Slide 8: Revenue Diversification Decreased the Pandemic Impact

    Revenue Diversification Decreased the Pandemic Impact Q1 2020 (24%)  Revenue from PMI, Top-up & Contracted Institutions grew by 20% 7% in Q1 2020 (6%) 10% 3%  SSI Insurance allows for a wide 25% addressable market (c.98% of the total population)  Share of self pay continues to increase in total 

  9. Slide 9: # of People with Top-up Insurance Exceeds 1.2 million

    # of People with Top-up Insurance Exceeds 1.2 million # of People with Insurance (PMI and Top-up) in Turkey – 000s Growth CAGR (2014-2019) (Q1 2019-Q1 2020) 3,705 3,465 4,000 2,214 10.8% 3,022 14.7% 3,500 3,000 1,354 1,218 2,500 64 84.0% 880 38.5% 2,000 1,500 1.8% 2,350 4.9% 1,000 2,150 2,143 2,247

  10. Slide 10: Medical Tourism Revenue Slow Down Due to Pandemic

    Medical Tourism Revenue Slow Down Due to Pandemic Medical Tourism Revenue (TLm)  Diversified and Balanced Geography. Patients 130 comes from: 6.2% 120 (11.8%) 110 33% 28% Europe 100 (13) 7 90 Middle East and Africa 80 106 (5.6%) 100 38% 70 Former CIS and the Rest 60  Strong marketing through offic

  11. Slide 11: Growth Opportunities in Ankara

    Growth Opportunities in Ankara Map of Ankara VM Medical Park Ankara Medical Park Ankara Location: Keçiören / Ankara Liv Hospital Ankara Opening Date: March 2020 Key Statistics  19k sqm  75 bed capacity  27 policlinic rooms Hospitals with Medical Park Brand  6 operating rooms Hospitals with Liv H

  12. Slide 12: Planned M&A in 2020-2021

    Planned M&A in 2020-2021 # of Hospitals Liv Hospital Gaziantep Liv Hospital İstanbul 2 4 26 Medical Park Liv Hospital 2020-2021 Additions Liv Hospital Location  Gaziantep  İstanbul Opening Date  ~ Q4 2020  ~ 2021 Key Statistics  40k sqm  ~ 50k sqm  ~ 230 bed capacity  70 policlinic rooms  8

  13. Slide 13: Accelerated Efforts for Digitalisation After Pandemic

    Accelerated efforts for Digitalisation After Pandemic Centralisation of HR – Recruitment and Procurement (E-tender) Talent Management Telemedicine – Medical Park Evde & Liv Hospital Evde Digital Agreements Digitalization of invoicing/collection

  14. Slide 14: Burcu Öztürk, CFO

    MLPCARE Burcu Oztiirk CFO 14

  15. Slide 15: Revenue Up 5% in Q1 2020

    Revenue Up 5% in Q1 2020 Revenue (TLm) 6.7% 1200 1100 4.9% 1,107 1000 1,037 900 979 933 800 700 600 500 Q1 2019 Q1 2020 Q1 2019 Q1 2020 1 Revenue Including Managed Hospitals: Revenues of Florya, ISU Gaziosmanpaşa and ISU Bahçeşehir were included Denotes growth of Revenue vs. the same period of the l

  16. Slide 16: EBITDA Up by 2% in Q1 2020

    EBITDA Up by 2% in Q1 2020 EBITDA (TLm) 1 350 300 1.9% (1.3%) 250 231 235 200 221 218 150 100 50 0 Q1 2019 Q1 2020 Q1 2019 2 Q1 2020 2 1 Adj. EBITDA: EBITDA TFRS adjustments that have no cash impact on relevant period and one-off income/expense items 2 Adj. EBITDA: Adj. EBITDA without foreign exchan

  17. Slide 17: Revenue Growth in Q1 2020 Despite Pandemic Impact

    Revenue Growth in Q1 2020 Despite Pandemic Impact Domestic Patient Medical Tourism Ancillary Business Revenues Revenues 11.3% 1.5% (24.0%) 10.2% (5.6%) 926 128 807 72 100 Q1 2020 Q1 2020 Q1 2020 Q1 2020 Q1 2020 Growth Continued in Q1 2020 Slow down in Medical Tourism Strong Growth in Managed Revenue

  18. Slide 18: Strong Improvement in Both ARPV and ARPP in Q1 2020

    Strong Improvement in Both ARPV and ARPP in Q1 2020  Outpatient and Inpatient revenues made up 41% and 59% of total Domestic Hospital Business Revenues in Q1 2020. Outpatient Revenues (TLm) Inpatient Revenues (TLm) 9.2% 10.8% 19.2% 19.1% (10.0%) (8.3%) 500 (30) 450 (36) 82 58 400 350 330 430 477 30

  19. Slide 19: Smart Cost Management Results in Profitability Growth

    Smart Cost Management Results in Profitability Growth  Material costs as a % of revenue Cost of Service and G&A Expenses as a % of declined in Q1 2020 due to decrease Revenues in the share of laboratory business Adj. EBITDA Margin 24.7% 24.0% which has higher cost base.  Doctor costs as a % of rev

  20. Slide 20: Debt Position in Q1 2020

    Debt Position in Q1 2020 NET DEBT FX BASED NET DEBT1 (in EUR m) Q1 2020 1 EUR30m EUR6m 120 equivalent of equivalent of FX Cash Balance FX Cash Balance 100 85 120 80 66 60 100 85 40 80 65 20 60 - 40 Net Hard Q1 2020 FMT Currency Debt Revenue (LTM) 20 (in EUR) (in EUR) - 2019 Q1 2020 Nominal Net Debt

  21. Slide 21: Easing CB policy rate

    Easing CB policy rate 40.00 CBT Interest Rate % 35.00 30.00 25.00 24.00 24.00 24.00 24.00 20.00 16.50 16.50 15.00 12.00 9.75 10.00 8.00 8.25 5.00 0.00 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 May.20 Central Bank of Turkey policy rates has positive impact on our intere

  22. Slide 22: Total Capex Decreased, Operating Cash Flow Improved

    Total Capex Decreased, Operating Cash Flow Improved Maintenance Capex (TLm) Total Capex (TLm) Operating Cash Flow / EBITDA 87.4% 2.0% 4.3% 250 25 1.5% 50 3.7% 200 38.2% 20 40 205 20 40 150 15 30 36 10 14 20 100 5 10 50 88 - - - Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 % of Revenue % of Revenu

  23. Slide 23: Precautions Taken Regarding the COVID-19 Pandemic

    Precautions Taken Regarding the COVID-19 Pandemic We have taken all precautionary actions to decrease the effect of Covid-19 on our financial performance. Cost Management:  Personnel Expenses: Government’s Incentive of Short-time Work Program was utilized as of Apr-20.  Doctor Costs: Almost all do

  24. Slide 24: MLP Care

    CARE

  25. Slide 25: Closing Remarks

    Closing Remarks Muharrem Usta – Chairman & CEO 25

  26. Slide 26: Thank You!

    Thank You! MLP Care Investor Relations Deniz Can Yücel +90 212 227 5555 (Ext: 1148) deniz.yucel@mlpcare.com http://investor.mlpcare.com/en/

  27. Slide 27: Historical P&L Statements

    Historical P&L Statements TLm Q1 2020 Q1 2019 Change (%) Revenue 979 933 4.9% Cost of service (-) (750) (706) 6.2% Gross profit 229 227 0.8% General administration expenses (-) (74) (72) 3.4% Other income from operations 82 63 31.5% Other expenses from operations (-) (67) (60) 11.7% Operating profit

  28. Slide 28: Historical Balance Sheet

    Historical Balance Sheet Unaudited Audited TLm March 31, 2020 December 31, 2019 Cash and cash equivalents 386 306 Trade receivables 1,067 991 Inventory 118 90 Short term other assets 374 335 Current assets 1,945 1,722 Tangible and intangible fixed assets 1,453 1,327 Right of use assets 291 235 Defer

  29. Slide 29: Reconciliation from Reported EBITDA to Adjusted EBITDA

    Reconciliation from Reported EBITDA to Adjusted EBITDA TLm Q1 2020 Q1 2019 Net profit / (loss) 61 11 Tax (income) from operations 25 10 Depreciation and amortization of tangible and intangible fixed assets 62 64 Total interest expenses/(income) and fair value differences of derivative instruments 16

MLP Care — Q1 2020 Earnings Presentation on 6ix