Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — Q2 2016 Earnings Presentation
35 slides from Cleopatra Hospital's earnings presentation, 2016
Slide 1: Cleopatra Hospital Company Investor Presentation 2Q16
Cleopatra Hospital Company Investor Presentation 2Q16
Slide 2: At a Glance
At a Glance 4 +20 Operational hospitals Years of subsidiary track record across our platform • Cleopatra Hospital Company (the “Group” or “CHC”), is the largest private hospital group in Egypt and consists of four operational hospitals all in Cairo, namely: 635 1,600 I. Cleopatra Hospital (“Cleopatr
Slide 3: Presence in Attractive Catchment Areas Across Greater Cairo
Presence in Attractive Catchment Areas Across Greater Cairo Al Shorouk Hospital Cleopatra Hospital Location Mohandesin, Giza Location Heliopolis, Cairo Built-up Area 5,270 sqm Built-up Area 7,380 sqm Date Established 1996 Date Established 1984 # of Beds 120 # of Beds(2) 167 Cairo Specialized Nile Ba
Slide 4: Our Value Proposition
Our Value Proposition
Slide 5: Key Investment Highlights
Key Investment Highlights 1 2 3 4 5 6 Resilient and Leading position Capitalizing on Leverage on Solid financial Seasoned underpenetrated in a market with established integrated performance management market with high barriers to brand equity & platform and with potential team with structural entry
Slide 6: Resilient & Underpenetrated Market with Demand Growth
Healthcare Expenditure (EGP bn) 273 Public Private 237 Resilient & Underpenetrated 153 178 206 163 Market with Demand Growth 83 96 113 131 81 94 108 125 143 70 53 60 110 81 95 50 59 69 30 36 43 Operating in an underpenetrated and growing market 2012 2013 2014 2015 2016f 2017f 2018f 2019f 2020f Sourc
Slide 7: Prevalence of Diseases in Egypt
Prevalence of Diseases in Egypt Lifestyle Diseases Hepatitis C Prevalence (2012) (‘000 cases) Cancer Prevalence (2012) (‘000 cases) Estimated Incidence Prevalence (1-year) Prevalence (3-years) 931 6,023 492 3,403 358 208 1,473 146 145 1,215 105 83 59 54 34 26 21 254 17 17 14 12 10 43 25 16 7 6 9 9 7
Slide 8: Leading Position in a Market with High Barriers to Entry
Leading Position in a Market with High Barriers to Entry Largest institutional hospital group in Egypt by number of …Capturing the largest share of the top 10 large private …And by number of hospitals(1) … beds(1)… hospitals in Cairo 624 4 41% 3(4) 200(2) 300(3) 241(4) 4 out of top 10 145(2) 1(2) 1(
Slide 9: Capitalizing on Established Brand Equity & Subsidiary Track Record
Capitalizing on Established Brand Equity & Subsidiary Track Record Individual Subsidiary Track Record Cairo Specialized Cleopatra Al Shorouk Nile Badrawi Hospital Est. 1984 Est. 1996 Est. 1985 Est. 1976 • Reputable brand in East Cairo area • Reputable brand in East Cairo area • Reputable brand in We
Slide 10: Leverage on Integrated Platform and Scale to Extract Synergies
Leverage on Integrated Platform and Scale to Extract Synergies • Centralized functions including quality control, IT, HR, Institutionalized finance, legal, business development and supply Group Management chain • Shared cost benefits • Bottom-up business planning • Standardized and improved quality
Slide 11: Solid Financial Performance
Group Revenue Contribution by Hospital (1H2016 ) Solid Financial 17% Performance 18% 44% Group Revenues (EGP mn) 17% 16% 741 638 139 21% 543 118 121 99 107 412 87 123 149 69 114 75 Cleopatra CSH NBH Al Shorouk 88 243 290 332 179 2013 2014 2015 1H2016 Group Gross Profit (EGP mn, Group % margin) 32% 2
Slide 12: Led by a Seasoned Management Team with Clear Organizational Structure
Led by a Seasoned Management Team with Clear Organizational Structure Dr. Ahmed Ezz El Din – Chief Executive Officer Dr. Mohamed Ibrahim Dr. Moharram El Badawy Dr. Khaled El Noury Prof. Hassan Shaker MD Cleopatra Hospital MD El Shorouk Hospital MD Cleopatra Hospital & MD Cairo Specialized Hospital G
Slide 13: Our Forward Looking Strategy
Our Forward Looking Strategy
Slide 14: Clearly Defined Growth Strategy
Clearly Defined Growth Strategy Our growth strategy is based on six key pillars: Further Enhancing Expanding Strengthening Leveraging Achieve Joint integration to utilization and Hospital unified brand stronger Commission achieve higher optimizing capacities and position with International efficienc
Slide 15: Further Integration to Achieve Higher Efficiencies
Further Integration to Achieve Higher Efficiencies General Integration Activities Across the Group Operations Upgrading Equipment & Facility • Increase space utilization through bed conversion, new ICU beds and Chemotherapy • Added new specialties and sub-specialties to its offering in the first and
Slide 16: Further Integration to Achieve Higher Efficiencies Cont'd
Further Integration to Achieve Higher Efficiencies Cont’d General Integration Activities Across the Group Human Resources Business Development • Standard Organization Chart / Manpower plan • Developed Pricing Strategy for group hospitals for standardization and potential • Staff Appraisal System uni
Slide 17: Enhancing Utilization and Optimizing Existing Capacity
Enhancing Utilization and Optimizing Existing Capacity Well Defined 2016 CAPEX Plan (EGP mn) Improvement in Utilization Medical Civil IT General Outpatient Clinic Visits / Clinic / Day(1) Surgeries per OR / Day(2) 10 7 13 4.4 4.5 7.5 8.0 41 2.8 2.9 5 2 124 1.9 2.1 3.5 3.7 3.7 3.5 1.4 1.5 2.8 16 7 18
Slide 18: Brownfield Acquisition Planned Investments
Expand Hospital Capacities Overview • 336.5 m2 plot of land adjacent to Al Shorouk Al Shorouk Extension • Multi-specialty general hospital adjacent to Al Shorouk, with a focus in ICU • The unit will hold c.40 beds (out if which 13 ICU), 3 surgical rooms, Linear Accelerator, and 2 outpatient clinics
Slide 19: Expanding the Group's Feeder Network
Expanding the Group’s Feeder Network Expand patient access through ambulatory outpatient center offering Market opportunity Ambulatory Clinics are a relatively underdeveloped but high-margin offering in Egypt, with significant expansion avenues Objective This acts as the hub hospital(s), to These po
Slide 20: Strengthening Unified Brand
Strengthening Unified Brand Creating an Umbrella Brand Synonymous with Quality Patient Care Phase I – Corporate Positioning Phase II – Promoting Umbrella Brand Target – Unified Group Brand Identity Upgrade equipment / standardize quality of all Creating the Group’s brand identity services across
Slide 21: Leveraging Stronger Position with Insurance and Contact Clients
Leveraging Stronger Position with Insurance and Contact Clients Insurance Pricing Classification MetLife Gold Card MetLIfe Silver Card • Hospitals included solely in this • 2nd tier hospitals included group are considered of premium • Midsized insurance packages quality • Relatively more expensive s
Slide 22: Achieve Joint Commission International (JCI) Accreditation
Achieve Joint Commission International (JCI) Accreditation The quality council is in charge of creating a unified quality policies and procedures structure, tailored to match each hospital’s characteristics; reviewing policies and procedures’ implementation and preparing Key Initiatives benchmark au
Slide 23: Governance & Shareholder Information
Governance & Shareholder Information
Slide 24: CHC is Backed by an Experienced Board of Directors
CHC is Back by an Experienced Board of Directors Well Structured BoD(1) Healthcare Experts Financial and Investment Experts Dr. Mohamed Awad Sameh Mohsen Nabil Kamhawy General Omar Kinawy Dr. Ahmed Ezzeldin Ahmed Badreldin Walid Bakr Tag El Din Chairman & Group CEO Founder / Previous CEO Former Head
Slide 25: Key Investor Information
Key Investor Care Health Limited’s Key Shareholders Information The Abraaj Group is a leading investor operating in the growth markets of Asia, Africa, Latin America and the Middle East, currently manages c. US$ 9.5 billion across 20 sector and country-specific funds DEG, the German Investment and D
Slide 26: Appendix I: Financial Statements & Management Commentary
Appendix I: Financial Statements & Management Commentary
Slide 27: Consolidated Income Statement & Comprehensive Income
Consolidated Income Statement & Comprehensive Income All figures in EGP mn 1H15 1H16 change 2Q15 2Q16 change All figures in EGP mn 1H15 1H16 change 2Q15 2Q16 change Net Profit 29.9 30.8 3% 14.8 8.3 -44% Revenues 156.6 411.5 163% 81.3 201.7 148% Other comprehensive - - - - income Cost of sales (102.2
Slide 28: Key Revenue Drivers
Key Revenue Drivers Number of Inpatients Outpatient Visits 46,613 46,886 47,256 606,206 472,319 419,222 24,023 316,560 2013 2014 2015 1H2016 2013 2014 2015 1H2016 Number of ER Patients Number of Surgeries 278,404 34,900 253,523 32,535 33,925 230,283 129,485 18,498 2013 2014 2015 1H2016 2013 2014 201
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP mn 31 December 2015 30 June 2016 All figures in EGP mn 31 December 2015 30 June 2016 Non-current liabilities Non-current assets Long term debt 162.4 371.5 Fixed assets Other credit balances – non current portion - 12.6 267.0 379.7 Intangible assets Other
Slide 30: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement All figures in EGP mn 30 June 2016 30 June 2016 All figures in EGP mn 30 June 2015 30 June 2016 Cont’d Cash flow from operating activities: Cash flow from investment activities: Profit before tax 39.0 42.1 Proceeds from sale of investments held to maturity - 0.0 Adju
Slide 31: Appendix II: Management Bios
Appendix II: Management Bios
Slide 32: Management Biographies - 1/3
Management Biographies - 1/3 1. Dr. Ahmed Ezz El-Din, Group Chief Executive Officer Dr. Ahmed Ezz El-Din brings over 35 years of healthcare experience to the group and a deep insight into healthcare businesses in Egypt. Prior to assuming his role as the Group’s CEO, Dr. Ezz El-Din was the Director o
Slide 33: Management Biographies - 2/3
Management Biographies - 2/3 6. Prof. Hassan Shaker, Cairo Specialized Hospital (CSH) Managing Director Professor of Surgery at Ain Shams University’s Faculty of Medicine, Dr. Hassan Shaker adds valuable hospital management experience to the Group. Prior to his position as Managing Director of Cairo
Slide 34: Management Biographies - 3/3
Management Biographies - 3/3 10. Dr. Sherif Abd El-Fattah, Supply Chain Director Dr. Sherif Abd El-Fattah has over 20 years of hands-on experience in supply chain management and operations management in the medical field, having previously held positions including Supply Chain Director, Deputy Gener
Slide 35: Thank you
Thank you INVESTOR RELATIONS DIRECTOR SHAREHOLDER INFORMATION Hoda Yehia Direct: +202 2241 7471 EGX: CLHO.CA E-mail: hoda.yehia@cleohc.com Listed: June 2016 investors.cleopatrahospitals.com Shares Outstanding: 200 million
Cleopatra Hospital Company — Q2 2016 Earnings Presentation on 6ix