Mlp Saglik Hizmetleri As Class B · BIST:MPARK
Mlp Saglik Hizmetleri As Class B — MLP Care — TEB Investment Corporate Investors Meeting, January 2021
47 slides from Mlp Saglik Hizmetleri As Class B's conference presentation, January 2021
Slide 1: MLP Care Investor Presentation
MLP Care Investor Presentation TEB Investment Corporate Investors Meeting, January 2021
Slide 2: Content
Content Introduction to MLP Care Our Growth Strategy is Intact Precautions Taken Regarding the COVID -19 MLP Care 9M 2020 Financial Highlights Accelerated Efforts for Digitalization After Pandemic Why Invest in MLP Care? Appendix 2
Slide 3: MLP Care: The #1 Private Hospital Group in Turkey
MLP Care: The #1 Private Hospital Group in Turkey Two brands and one concept targeting three different price points with The largest hospital group in 30 Hospitals in consistently outstanding medical service Total Turkey quality Established in 1993, listed on BIST in 2018 ~18,000 Staff 1 6,000+ Beds
Slide 4: Our Growth Strategy is Intact
Our Growth Strategy is Intact MLP Care continues its asset light growth strategy Expanding in metropolitans through mid-large scale hospitals (min. 100 bed capacity) Quick EBITDA ramp-up through leveraging MLP Care’s resources (brand strength, operational know how, licensing, experienced physicians,
Slide 5: A network of hospitals located strategically across Istanbul
A network of hospitals located strategically across Istanbul VM Medical Park Maltepe Map of Istanbul Location: Maltepe / Istanbul Opening Date: December 2019 TOTAL CAPEX: Less than TL1m Key Statistics 20k sqm 135 bed capacity 60 policlinic rooms Hospitals with Medical Park Brand 7 operating
Slide 6: Growth Opportunities in Ankara
Growth Opportunities in Ankara Map of Ankara VM Medical Park Ankara Medical Park Ankara Location: Keçiören/ Ankara Opening Date: March 2020 Hospitals with Medical Park Brand TOTAL CAPEX: Less than TL250k Liv Hospital Hospitals with Liv Hospital Brand Ankara Key Statistics 19k sqm 94 bed capacity
Slide 7: Growth Opportunities in Gaziantep
Growth Opportunities in Gaziantep Map of Gaziantep Liv Hospital Gaziantep Location: Şehitkamil / Gaziantep Opening Date: September 2020 TOTAL CAPEX: Less than TL200k Key Statistics 40k sqm Medical Park 258 bed capacity Gaziantep 70 policlinic rooms 8 operating rooms Hospitals with Medical Pa
Slide 8: Planned M&A in 2021 – 2022
Planned M&A in 2021 – 2022 # of Hospitals Liv Hospital İstanbul Target M&A’s (Planned) 5 4 1 25 Medical Park Liv Hospital 2021 Additions 2021-2022 Target M&A's Liv Hospital Location İstanbul Metropolis Opening Date ~ Q2 2021 2021-2022 Key Statistics ~ 50k sqm 4 new hospitals 8
Slide 9: Precautions Taken Regarding the COVID-19 Pandemic
Precautions Taken Regarding the COVID-19 Pandemic Government’s Incentive of Short-time Work Program was utilized between Apr-20 – June-20. Personnel Expenses Employees have been gradually shifted to a full-time working cycle. Doctor Costs Almost all doctor costs are variable. Revenue decline also de
Slide 10: Precautions Taken Regarding the COVID-19 Pandemic
Precautions Taken Regarding the COVID-19 Pandemic Cash Preservation & Liquidity Management Responsible Leverage A long-term loan of TL 330 million was withdrawn (investment loan of TL 80 million and a Net Working Capital Facility of TL 250 million) with an attractive interest rate of TR LIBOR + 2.5%
Slide 11: MLP Care 9M 2020 Financial Highlights
MLP Care 9M 2020 Financial Highlights Adj. EBITDA Revenue TL 2,814 m TL 766 m 4% Growth 27% Growth Revenue growth continued to improve Q-o-Q (Q3 2020: TL 1,075 m) (Q3 2020: TL 312 m) EBITDA margin supported by effective cost management and favorable portfolio mix Lower interest expense due to
Slide 12: Revenue Increased 4% in 9M 2020 despite the COVID-19 Impact
Revenue Increased 4% in 9M 2020 despite the COVID-19 Impact Revenue (TLm) 3.6% 2,716 2,814 20.4% 1,075 893 Q3 2019 Q3 2020 9M 2019 9M 2020 Denotes growth of Revenue vs. the same period of the last year 12
Slide 13: Revenue Increased 4% in 9M 2020 despite the COVID-19 Impact
Revenue Increased 4% in 9M 2020 despite the COVID-19 Impact 9M 2020 Revenue from SSI was up by 27% in Q3 (19%) 2020 (SSI Insurance allows for a wide addressable market, which is c.98% of the (31%) 7% total population) 16% 8% Revenue from PMI, Top-up & Contracted 29% Institutions increased by 27%
Slide 14: # of People with Top-up Insurance Exceeds 1.6 million
# of People with Top-up Insurance Exceeds 1.6 million # of People with Top-up Insurance in Turkey 09.2020; 1,671 12.2019; 1,354 CAGR Growth 09.2019; 1,126 (2014-2018) (9M 2019 – 9M 2020) 12.2018; 920 84.0% 48.5% LTM Addition to Number of People with Top-up Insurance +545k Top-up LTM Top-up Addition
Slide 15: Revenue Climbs Up After Movement and Travel Restrictions
Revenue Climbs Up After Movement and Travel Restrictions Domestic Patient Medical Tourism Ancillary Business Revenues Revenues 12.1% (27.3%) (19.3%) 11.5% (31.3%) 28.1% (14.3%) 2,395 193 27.9% 226 13.2% (21.9%) 916 91 68 Q3 2020 9M 2020 Q3 2020 9M 2020 Q3 2020 9M 2020 Revenue Growth Continued in Q3
Slide 16: Strong Improvement in Both ARPV and ARPP in 9M 2020
Strong Improvement in Both ARPV and ARPP in 9M 2020 Outpatient Revenues (TLm) Inpatient Revenues (TLm) 6.4% 15.0% 29.5% 33.3% (23.1%) (18.3%) 424 (202) 258 (233) 1,464 875 931 1,273 9M 2019 Volume & Mix Price 9M 2020 9M 2019 Volume & Mix Price 9M 2020 Average Revenue Per Visit (ARPV) Average Revenue
Slide 17: EBITDA Up by 27% in 9M 2020 supported by prudent cost management
EBITDA Up by 27% in 9M 2020 supported by prudent cost management EBITDA (TLm) 27.4% 17.0% 766 693 592 601 79.4% 49.6% 312 279 174 186 Q3 2019 1 Q3 2020 1 9M 2019 1 9M 2020 1 Q3 2019 2 Q3 2020 2 9M 20192 9M 2020 2 1 Adj. EBITDA: EBITDA TFRS adjustments that have no cash impact on relevant period and
Slide 18: Prudent Cost Management
Prudent Cost Management Cost of Service and G&A Expenses as a % of Revenues Cost Saving Measures enables us to reach the favourable EBITDA Margin Adj. EBITDA Margin 22.1% 27.2% Material costs as a % of revenue declined in Q3 2020 0.8% due to decrease in the share of laboratory business 0.9% which
Slide 19: Debt Position in 9M 2020
Debt Position in 9M 2020 FX BASED NET DEBT1 (in EUR m) 100 NET DEBT 90 80 9M 20201 EUR30m EUR37m 70 equivalent of equivalent of 60 FX Cash Balance FX Cash Balance 47 47 50 40 30 20 10 - 65 Net Hard 9M 2020 FMT 47 Currency Debt Revenue (LTM) (in EUR) (in EUR) Nominal Net Debt (exc. IFRS 16) 1,476m TL
Slide 20: Total Capex Decreased, Operating Cash Flow Improved
Total Capex Decreased, Operating Cash Flow Improved Maintenance Capex (TLm) Total Capex (TLm) Operating Cash Flow / EBITDA 89.8% 2.0% 4.5% 1.6% 3.9% 140 120 65.1% 56 123 688 100 108 44 80 60 40 391 20 - 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 % of Revenue % of Revenue % of EBITDA 20
Slide 21: Accelerated Efforts for Digitalization After Pandemic
Accelerated Efforts for Digitalization After Pandemic Digital HR Digital Digital Contract Invoicing Management Digital Digital Supply Chain Doctor Digital Transformation Office Digital Digital Cost Control GDPR Digital Digital Customer Marketing Satisfaction 21
Slide 22: Why Invest in MLP Care?
Why Invest in MLP Care? 1 Operates in the Attractive Turkish Healthcare Market 2 Clear Leader in Private Hospital Provision 3 Strong Brand Recognition and Unique Business Model 4 Clinical Excellence and World Class Service Offering 5 Superior Historical Financial Performance 6 Outstanding Platform f
Slide 23: Operates In The Attractive Turkish Healthcare Market
1 Operates In The Attractive Turkish Healthcare Market Turkey is an attractive healthcare market with a growing elderly population and level of affluence, with significant scope for expansion compared to OECD players. Turkish Healthcare Spending to Providers1 (TLbn) Growth in Aging Turkish Populatio
Slide 24: Operates In The Attractive Turkish Healthcare Market
1 Operates In The Attractive Turkish Healthcare Market Private operators have increased their market share, by increasing capacity and by focusing on procedures with higher complexity. Private players now account for 22% of beds, but provide 53% of complex surgeries. Number of Hospital Beds (’000) N
Slide 25: Operates In The Attractive Turkish Healthcare Market
1 Operates In The Attractive Turkish Healthcare Market Supportive government policies have underpinned the expansion of private hospital groups Healthcare System and Key Participants Universal Healthcare Coverage with Patient Choice Regulation Funding Service Patients Universal healthcare coverage (
Slide 26: Clear Leader in Private Hospital Provision
2 Clear Leader in Private Hospital Provision MLP Care is the largest multi-specialty hospital group in Turkey and the only private player with a truly nationwide network MLP Care network (# of hospitals and locations) National and local leader with a network covering the greatest number of cities
Slide 27: Clear Leader in Private Hospital Provision
2 Clear Leader in Private Hospital Provision MoH is investing in the PPP program, but large private players do not expect to see an impact in the near / mid term Highly illustrative schematic of the Turkish Healthcare Sector PPP success factors Top end of the Private Hospital market City hospitals
Slide 28: Strong Brand Recognition And Unique Business Model Addressing Multiple Price Points
3 Strong Brand Recognition And Unique Business Model Addressing Multiple Price Points Two brands and one concept targeting three different price points with consistently outstanding medical service quality Overview and Positioning 30 Total Hospitals in Portfolio Relative Average Price per Payor Type
Slide 29: Clinical Excellence And World Class Service Offering
4 Clinical Excellence And World Class Service Offering MLP Care benefits from a “Virtuous Circle” of best-in-class service, infrastructure and academic affiliations JCI accreditation SRC1 University affiliations The Gold Standard in Healthcare Globally The Global standard for quality surgical care M
Slide 30: Clinical Excellence And World Class Service Offering
4 Clinical Excellence And World Class Service Offering Top tier talent and patients are attracted to MLP Care’s unrivalled reputation, resulting in a steadily growing market share Ability to attract and retain top-tier physicians… CAGR Key points of attraction Proven track record of physicians recru
Slide 31: Superior Historical Financial Performance
5 Superior Historical Financial Performance EBITDA Growth > Net Sales Growth > CPI (Consumer Price Index) Net Sales (TLm) Adj. EBITDA1 (TLm) 20% 23% CAGR 2014-2019 CAGR 2014-2019 43% 33% 26% 21% 22% 19% 18% 17% 20% 9% 10% 12% 12% 5% 9% 2015 2016 2017 2018 2019 Net Sales Growth EBITDA Growth CPI (Con
Slide 32: Outstanding Platform for Further Growth
6 Outstanding Platform for Further Growth Proven track record of greenfield expansions and M&A Total Hospitals 25 26 27 29 31 29 30 At Year End MLP Care has added on average c.400 beds p.a.1 Greenfield through greenfield projects since 2014 Multiple opportunities identified for expanding bed cap
Slide 33: Outstanding Platform for Further Growth
6 Outstanding Platform for Further Growth MLP Care has several avenues to continue its growth trajectory Top line growth via the Growth through favourable insurance scheme revenue diversification MLP Care has increased its market share in PMI (private medical insurance) Self-Pay share of total p
Slide 34: Appendix
Appendix Revenue Breakdown by Payor Type – 2019 Revenue – 2019 EBITDA – 2019 Revenue Segments – 2019 Costs Breakdown – 2019 Total Capex and Maintenance Capex – 2019 Operating Cash Flow – 2019 Historical Financial Statements Capital, Shareholder Structure & Subsidiaries Key Historical Milestones 34
Slide 35: Revenue Up 18% in 2019
Revenue Up 18% in 2019 Revenue (TLm) 18.3% 3,704 3,132 2018 2019 Denotes growth of Revenue vs. the same period of the last year 35
Slide 36: Revenue Diversification Through Growing Segments
Revenue Diversification Through Growing Segments 2016 2019 6% 8% 6% 32% 4% 5% 12% 26% 16% 39% 34% 23% 39% 18% SSI Self-pay PMI, Top-up & Medical Tourism Other 32% Contr. Inst. Revenue from PMI, Top-up & Contracted Institutions grew by 39% in 2019 Medical Tourism grew by 32% in 2019 SSI Insuran
Slide 37: EBITDA Up 33% in 2019
EBITDA Up 33% in 2019 EBITDA (TLm)1 27.5% 32.8% 15.5% 834 14.8% 722 814 579 638 505 560 421 2018 2019 2018 2019 (IFRS 16) (IFRS 16) 1 Adj. EBITDA: EBITDA TFRS adjustments that have no cash impact on relevant period and one-off income/expense items Adj. EBITDA: Adj. EBITDA without foreign exchange ef
Slide 38: Strong Revenue Growth in 2019
Strong Revenue Growth in 2019 Domestic Patient Medical Tourism Ancillary Business Revenues Revenues 5.9% 17.9% 31.8% 435 306 2,962 2019 2019 2019 Growth Continued in 2019 Continued to Attract Foreign Strong Growth in Managed Inpatient revenues grew in Patients in 2019 University Hospital Revenues
Slide 39: Smart Cost Management results in profitability growth
Smart Cost Management results in profitability growth Cost of Service and G&A Expenses as a % of Revenues Material costs as a % of revenue declined in 2019 due to cost controls and efficiency initiatives. Adj. EBITDA Margin 16.1% 15.6% Doctor costs as a % of revenue declined due to increase in h
Slide 40: Total Capex and Maintenance Capex Decreased in 2019
Total Capex and Maintenance Capex Decreased in 2019 Maintenance Capex (TLm) Total Capex (TLm) 2.7% 9.0% 300.0 100.0 1.6% 250.0 282 4.7% 80.0 84 200.0 60.0 150.0 173 40.0 58 100.0 20.0 50.0 - - 2018 2019 2018 2019 % of Revenue % of Revenue 40
Slide 41: Operating Cash Flow and Free Cash Flow improved in 2019
Operating Cash Flow and Free Cash Flow improved in 2019 Operating Cash Flow / Adj. EBITDA Free Cash Flow 96.7% TL151m Early 70.6% Payments 236 65.7% to Small 560 Suppliers 409 332 50 2018 2019 2019 2018 2019 w/o early payments % of EBITDA Due to early payments to small suppliers, there was an one
Slide 42: Historical Balance Sheet
Historical Balance Sheet Unaudited Unaudited Audited TLm September 30, 2020 September 30, 2019 December 31, 2019 Cash and cash equivalents 492 231 306 Trade receivables 1,115 966 991 Inventory 112 83 90 Short term other assets 479 312 335 Current assets 2,198 1,592 1,722 Tangible and intangible fixe
Slide 43: Historical P&L Statements
Historical P&L Statements Unaudited Unaudited Unaudited Unaudited Change (%) Change (%) TLm 9M 2020 9M 2019 Q3 2020 Q3 2019 Revenue 2,814 2,716 3.6% 1,075 893 20.4% Cost of service (-) (2,150) (2,098) 2.4% (799) (698) 14.5% Gross profit 664 617 7.6% 277 196 41.3% General administration expenses (-)
Slide 44: Reconciliation from Reported EBITDA to Adjusted EBITDA
Reconciliation from Reported EBITDA to Adjusted EBITDA TLm 9M 2020 9M 2019 Q3 2020 Q3 2019 Net profit / (loss) 52 (20) 13 5 Tax (income) from operations 37 (5) 12 (3) Depreciation and amortization of tangible and intangible fixed assets 188 198 62 69 Total interest expenses/(income) and fair value d
Slide 45: Capital, Shareholder Structure & Subsidiaries
Capital, Shareholder Structure* & Subsidiaries *Shareholding structure after public offering (excluding the 6,827k shares purchased by shareholders from publicly traded portion) Usta Group – Elbaşı Group Sancak İnşaat Turizm (Founders) Lightyear Healthcare Hujori Financieringen Nakliyat B.V. B.V. •
Slide 46: Key Historic Milestones
Key Historic Milestones • 1 hospital • Carlyle • TURKVEN • 1 hospital • MPARK • Founders Dr. • Dr. Usta, Adem acquired • 2 • 3 • 1 hospital acquired opened in acquired in Muharrem Usta Elbaşı and Stocks Ankara 40% stake hospitals hospitals 53.35% Samsun and Adem Sancak Group opened in starting to in
Slide 47: Disclaimer / IR Contact
Disclaimer 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 available data. Act
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