Mlp Saglik Hizmetleri As Class B · BIST:MPARK

Mlp Saglik Hizmetleri As Class B — MLP Care — Q3 2020 Earnings Presentation

30 slides from Mlp Saglik Hizmetleri As Class B's earnings presentation, Nov 6, 2020

  1. Slide 1: MLP Care Q3 2020 Presentation

    MLP CARE Q3 2020 PRESENTATION NOVEMBER 6TH, 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 MLPCARE MEDICALPARK | Lit/nosprtaL

  4. Slide 4: At a Glance: MLP Care 9M 2020 Financial Highlights

    At a Glance: 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 ex

  5. Slide 5: Outlook 2020

    Outlook 2020 Total Revenue Trend*  Total revenues have dropped significantly in April due to pandemic impact. As of May, «V» shape recovery trend has started. Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Domestic Revenue Trend*  Domestic revenues have dropped significantly in April due to due

  6. Slide 6: At a Glance: MLP Care Operational Highlights

    At a Glance: MLP Care Operational Highlights 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 in T

  7. Slide 7: # 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

  8. Slide 8: 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,

  9. Slide 9: 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

  10. Slide 10: 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

  11. Slide 11: 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

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

    Planned M&A in 2020 – 2021 # 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 12

  13. Slide 13: 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 13

  14. Slide 14: Burcu Öztürk, CFO

    BURCU OZTURK CFO MLPCARE MEDICALPARK | Lit/nosprtaL

  15. Slide 15: Cost Management

    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

  16. Slide 16: 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%

  17. Slide 17: 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 17

  18. Slide 18: 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%

  19. Slide 19: 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

  20. Slide 20: 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

  21. Slide 21: 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

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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 24

  25. Slide 25: Q&A

    Q&A MLPCARE MEDICALPARK | Lit/nosprtaL

  26. Slide 26: Closing Remarks

    Closing Remarks MUHARREM USTA CHAIRMAN & CEO

  27. Slide 27: 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/

  28. Slide 28: 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

  29. Slide 29: 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 (-)

  30. Slide 30: 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

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