Slide 1: FY2019 Results Presentation
FY2019 Results Presentation May 2020
Slide 2: Contents
Contents: • FY2019 Results • COVID-19 Response Measures • Growth Strategies • Expanding Customer Reach • “Wayak” Investment • Al Borg Scan Updates • Nigeria Updates • Appendix 2 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 3: Results Snapshot
Results Snapshot Resilient financial and operational performance with revenues up 16% y-o-y in 2019 Revenue Split EGP 2,226 mn EGP 1,084 mn Revenue in FY 2019 Gross Profit in FY 2019 ▲16% y-o-y ▲14% y-o-y / 49% margin IDH revenue by geography IDH revenue by type (FY2019) (FY2019) EGP 945 mn EGP 505
Slide 4: Revenue Growth Drivers
Revenue Growth Drivers Revenue growth in FY2019 was supported by improved average pricing and higher patient and test volumes. Revenue Growth Drivers | EGP mn, % +16% 276 12 14 2 ( 0.1 ) 2,226 1,921 FY2018 Egypt without BG-Scan BG-Scan Jordan Sudan Nigeria FY2019 Egypt was the primary driver of grow
Slide 5: Segment Performance
Segment Performance Revenue mix skewed toward the contract segment due to higher campaign-related volumes Contract Segment Walk-In Segment Total FY2018 FY2019 Change FY2018 FY2019 Change FY2018 FY2019 Change Revenue (EGP ‘000) 1,141,483 1,331,160 17% 779,969 894,703 15% 1,921,452 2,225,863 16% % of
Slide 6: A Focus on the 100 Million Healthy Lives Campaign
A Focus on the 100 Million Healthy Lives Campaign The campaign was launched in November 2018 and ended in June 2019, and has directly benefited our business by increasing awareness and driving up our tests per patient ratio IDH FY2019 Patient Volumes | ‘000 IDH FY2019 Tests per Patient | ‘000 +6% 4.
Slide 7: A Ramp-up of Operations at Al Borg Scan
A Ramp-up of Operations at Al Borg Scan Al Borg Scan Revenue Progression | EGP mn 1.53 1.45 1.37 1.39 1.37 1.18 1.13 1.08 1.06 0.94 0.90 0.84 0.80 0.70 0.34 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 EGP 14 mn +27 k EGP 523 EGP 1.8 mn EBI
Slide 8: Regional Performance
Regional Performance Strong growth led by Egypt; Sudan and Jordan deliver solid EBITDA improvements Revenues | EGP mn EBITDA* | EGP mn / % +18% +19% EGYPT Strong revenue growth was 1,903 supported by favourable pricing, 877 85.5% EGP 1,903 mn 1,613 738 higher test volumes and by the 46% 46% ramp up
Slide 9: Strong Group Profitability
Strong Group Profitability Steady increase in operational efficiency combines with sustained cost-cutting measures to deliver strong Group profitability IDH COGS Breakdown | EGP mn / % of Revenue IDH SG&A Breakdown | EGP mn / % of Revenue +17% +11% IDH’s consolidated 973 1,143 IDH’s revenue growth 2
Slide 10: Strong Group Profitability
Strong Group Profitability IDH’s net profit margin stood at a healthy 23% despite higher interest and tax expenses IDH Interest Expenses| EGP mn / % of Revenue IDH Taxes | EGP mn / % of Revenue +322% IDH’s effective tax rate +15% The adoption of IFRS increased from 31% in 16 led to interest on 15.3
Slide 11: Summary Balance Sheet
Summary Balance Sheet 31 December 31 December EGP'000 2019 2018 Assets Non-current assets Property, plant and equipment 785,546 705,779 Adoption of IFRS 16 added EGP 265 million in Intangible assets and goodwill 1,660,836 1,672,463 right-of-use assets as of 31 December 2019. Right-Of-Use Asset 264,7
Slide 12: Summary Cash Flow Statement
Summary Cash Flow Statement EGP'000 31 December 2018 31 December 2019 Profit for the period before tax 717,358 758,143 Net cash from operating activities before WC 771,442 943,476 Net cash flow from operating activities recorded Change in working capital (74,597) (58,848) EGP 697 million in FY2019 c
Slide 13: Covid-19 Internal Protocols and Preventative Measures
Covid-19 Internal Protocols and Preventative Measures In light of the recent covid-19 global outbreak, IDH, in line with World Health Organization (WHO) guidelines, has implemented detailed internal protocols to guarantee the safety of its staff and patients and safeguard its operations. IDH’s respo
Slide 14: Growth Strategies
Growth Strategies 14 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 15: Expanding Customer Reach
Expanding Customer Reach IDH’s nationwide presence and strong brand equity position it well to benefit from state- sponsored campaigns to increase awareness of preventative healthcare with diagnostic testing Duration “100 Million Healthy Lives” campaign The largest health campaign under the directiv
Slide 16: Expanding Customer Reach
Expanding Customer Reach Parallel to state-sponsored initiatives, IDH also runs its own awareness campaigns focusing on specific diseases on a monthly basis and offering discounts on related testing IDH Monthly Disease Awareness Campaign Plans IDH implements monthly campaigns targeting specific dise
Slide 17: New Investment in Wayak
New Investment in Wayak IDH launches new subsidiary “Wayak” to offer data-driven healthcare services, utilising data analytics and artificial intelligence to capitalise on IDH’s database of over c.13 million patients Wayak Services Medication to be Service provider Diagnostics Discounted services Cu
Slide 18: Al Borg Scan Expansion Updates
Al Borg Scan Expansion Updates In October 2018, IDH inaugurated its first radiology business in Egypt under the brand name Al Borg Scan Rationale Key Service Offering & Suppliers Leverage the strong relationship between the Al Borg brand and its Al Borg Scan’s Mohandeseen branch offers a full range
Slide 19: Delivering on Our Strategies – Nigeria Expansion
Delivering on Our Strategies – Nigeria Expansion In December 2017, IDH further expanded its geographical footprint with an investment in Nigeria, a value-accretive acquisition in a large, fragmented and underpenetrated diagnostic services market where our business model is well-suited to capitalise
Slide 20: Nigeria Expansion Updates
Nigeria Expansion Updates Operational progress in Nigeria expansion with existing branches being refurbished and renovated and with loss-making branches being relocated or closed Branch Renovations & Rebranding Operational Milestones Hiring new management staff Rebranded the company to Echo-Lab (fro
Slide 21: Nigeria Branch Roll-Out and Renovations
Nigeria Branch Roll-Out and Renovations Opebi Branch Renovation and Rebranding New Victoria Island Branch Area 11 Branch Renovation and Rebranding Benin Branch Renovation & Rebranding 21 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 22: Nigeria Recently Acquired Equipment I/II
Nigeria Recently Acquired Equipment I/II Victoria Island Branch Opebi Branch 22 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 23: Nigeria Recently Acquired Equipment II/II
Nigeria Recently Acquired Equipment II/II Garki Branch Benin Branch 23 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 24: Appendix
Appendix 24 INTEGRATED DIAGNOSTICS HOLDINGS
Slide 25: Who We Are
Who We Are Integrated Diagnostics Holding is a leading, fully-integrated provider of high-quality medical diagnostic services with a footprint spanning Egypt, Jordan, Sudan and Nigeria Our Services Our Patients Immunology Radiology Hematology Walk-In Patients Endocrinology Clinical Chemistry Molecul
Slide 26: Our Geography
Our Geography IDH’s branch network of 452 labs at FY2019 spans 4 countries, the largest of which is Egypt 19 The Company’s Egyptian operations contributed branches 86% of consolidated Revenues in 1H2019 399 Jordan Branches EGYPT Egypt 85.5% 1979 FY2019 Cairo Region 46.4% Upper Egypt Region 17.0% JOR
Slide 27: Favorable Industry Dynamics
Favorable Industry Dynamics Structural Growth Drivers Powerful structural growth drivers underpin Egypt’s healthcare growth story, including an ever-expanding population, rising lifestyle diseases, favorable government regulation and increased medical tourism Lab tests per capita (2012) 23.2 High Di
Slide 28: Asset-light Business Model
Asset-light Business Model Hub, Spokes and Spikes IDH’s “Hub, Spoke and Spike” business model enables the Company to organically expand its reach in highly-fragmented markets with underserved diagnostic services demand Mega Lab: “Hub” • The Mega Lab, the largest automated lab in Egypt, serves as IDH
Slide 29: Our Mega Lab
Our Mega Lab State-of-the-Art Equipment with High Capacity and Throughput Capabilities Capacity Procurement • Mega Lab machines are capable of conducting a • Inauguration of IDH’s Mega Lab in 2015 doubled the • Central procurement system ensures coordinated wide range of tests including basic blood
Slide 30: Key Supplier Relationships
Key Supplier Relationships IDH leverages its bargaining power with suppliers to maximize value in a business that is fundamentally about COGS economy of scale Dynamics of Supplier Relationships • The majority of testing equipment is provided at no upfront cash cost in return for which IDH agrees to
Slide 31: Human Resources Development
Human Resources Development Training IDH views education as an essential means of ensuring quality across its laboratories. We strive to create a diverse, productive culture and a safe working environment in order to empower our people to reach their full potential Training streams Medical / scienti
Slide 32: IDH is a Consumer-Facing Service Provider
IDH is a Consumer-Facing Service Provider The mechanics of the Egyptian healthcare market are markedly different from those in many Western healthcare industries Egypt’s Private Healthcare System IDH serves the private healthcare A hospital outpatient clinic or While physicians ordering Patients the
Slide 33: Tactical Marketing Campaigns
Tactical Marketing Campaigns IDH’s tactical marketing programs are focused on driving patient and test volumes, especially in the higher-margin walk-in patient category IDH deploys marketing tools including: Walk-in patients are typically Egypt’s most vulnerable citizens, hurt most Gatherings for ph
Slide 34: Governance
Governance Overview IDH is committed to implementing best practices in corporate governance through the expertise of both the individual Directors and outside parties Internal Audit Procedures While not required to comply Anti-Bribery and Anti Corruption Policy (ABAC) with UK Corporate Governance T
Slide 35: Governance
Governance A World-Class Board of Directors The majority of members of IDH’s Board of Directors are independent and offer significant experience in the healthcare market, MENA region and investment activities Lord St John of Bletso 1 Prof. Dr. Hend El Sherbini Hussein Choucri 1,2,3,4 Independent Non
Slide 36: Sustainability
Sustainability Founded on the principle of providing quality medical assistance and services to better the lives of individuals and the community at large, IDH views corporate responsibility initiatives as an extension of its core purpose with the aim of improving communities in which it does busine
Slide 37: Investment Highlights
Investment Highlights IDH is an attractive investment opportunity with compelling fundamentals, present in fast-growing, under-served markets Formidable playing field with structural growth drivers, 1 high barriers to entry and a highly fragmented market Established business model with strong brand
Slide 38: IDH
INTEGRATED DIAGNOSTICS HOLDINGS IDH