Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — Cleopatra Hospitals Group — 9M 2024 Earnings Presentation
35 slides from Cleopatra Hospital's earnings presentation, 2024
Slide 1: Transforming Healthcare in Egypt
Transforming Healthcare in Egypt Investor Presentation 9M2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating
Slide 3: Contents
CONTENTS 1 Cleopatra Hospitals Group Highlights 2 Macro Environment 3 Competitive Advantages 4 Growth Strategy & New Business 5 Governance & Management Information 6 9M2024 in Review 7 Appendix
Slide 4: Cleopatra Hospitals Group Highlights
Cleopatra Hospitals Group Highlights 4
Slide 5: Our Mission, Vision and Values
Our Mission, Vision and Values ➢ A Patient-First Approach to Healthcare Our Mission • Delivering Leading Quality Services • Ensuring Safety of all Stakeholders • Growing Beds Supply & Expanding their Distribution • Improving Quality of Lives Everyday ➢ Sustainable Growth & Cross-Asset Collaboration
Slide 6: Cleopatra Hospitals Group Reports Record Breaking Results for 9M2024
Cleopatra Hospitals Group Reports Record Breaking Results for 9M2024 CHG exceeded expectations, 9M2024 Snapshot reporting record-breaking financial results for both the third quarter and first nine months of 2024. Consolidated revenue EGP 3,832 mn EGP 1,408 mn reached EGP 1,460mn in 3Q2024, Consolid
Slide 7: CHG enjoys a Broad Network spread Across Greater Cairo
CHG enjoys a Broad Network spread Across Greater Cairo, penetrating underserved regions Leveraging a growing footprint, CHG continues to penetrate new segments of the population and provide high quality care to underserved regions across Greater Cairo Leveraging a growing footprint, CHG continues to
Slide 8: The Group is a Fast Growing, Diversified Healthcare Services Provider
The Group is a Fast Growing, Diversified Healthcare Services Provider Group Revenue, Net Profit and Margins | EGP mn Revenue CAGR: 19% 3,595 3,832 2,549 2,614 2,532 27.9% 1,990 27.1% 29.9% 27.1% 26.5% 26.8% 28.9% 1,798 1,902 26.9% 763 954 1108 709 678 502 540 512 2019 2020 2021 2022 2023 9M22 9M23
Slide 9: Macro Environment
Macro Environment 9
Slide 10: Growing Population & Prevalence of Lifestyle Diseases
Growing Population & Prevalence of Lifestyle Diseases Demographics Common Illnesses Breast Cancer Cases Communicable Diseases Lung Cancer Cases CAGR 3% 382,642 Cases CAGR 3% Acute Respiratory illness 33,863 Cases Chicken Pox 7,521 Cases 23,081 40,544 11,945 Brucella 6,045 2018 2040 2018 2040 • The m
Slide 11: Egypt’s Healthcare Market Structure
Egypt’s Healthcare Market Structure Hospitals by Governorate and Geographical Disparities Medical Services in the Region EGYPT GCC MENA • Healthcare facilities are highly • Doctor/1,000 population ratio for concentrated in Cairo, Alexandria, Egypt is higher than both MENA Daqahleya & Giza which toge
Slide 12: Healthcare Investments in Egypt
Healthcare Investments in Egypt Private Sector as a % of total Healthcare Expenditure (2023) Government Spending 62% Government Healthcare Expenditure % of Total Expenditure 56% 58% 6.8% 4.7% 4.8% 5.2% 40% 39% 34% 36% 23% 21% 2018 2019 2020 2021 15% • Egypt’s House of Representatives approved budget
Slide 13: Competitive Advantages
Competitive Advantages 13
Slide 14: A leading healthcare services platform with sustainable competitive advantages
A leading healthcare services platform with sustainable competitive advantages CHG was a pioneering force in Egypt's private healthcare sector, recognizing its potential early on. The Group introduced an innovative 360-degree integrated management system, focused on delivering quality patient care a
Slide 15: Key Pillars of CHG’s Definition of Centers of Excellence
A High-Level Perspective on the Key Pillars That Make Up CHG’s Definition of Centers of Excellence Defining Centers of Excellence Select Examples of CHG’s Centers of Excellence Competitive Defined Scope & Nursing & Residents Advantage & Sales Focus Team Differentiation Consumables Medical Equipment
Slide 16: Growth Strategy & New Business
Growth Strategy & New Business 16
Slide 17: Defined Core Growth Strategy
Defined Core Growth Strategy Integrating the platform to Leveraging payor and achieve higher efficiencies supplier relationships Geographic expansion in Egypt Enhancing utilization and linked to following optimizing existing capacity Establish centers of while expanding capacities and the main payor
Slide 18: Cleopatra October Hospital – CHG’s Flagship Hospital of West Cairo
Cleopatra October Hospital – CHG’s Flagship Hospital of West Cairo & the Latest Addition… Facility Overview CHG has transformed the hospital into a world-class tertiary hospital, specialized Oct: Added Operating Rooms in orthopedic and spine surgeries with the biggest physiotherapy rehabilitation, P
Slide 19: …has surpassed expectations in terms of revenue and margins for 9M2024
…has surpassed expectations in terms of revenue and margins for 9M2024 Cleopatra October Hospital, now fully integrated in CHG’s operational and financial systems, is progressing well in its ramp-up phase following its transformation into a full-scale tertiary musculoskeletal hospital Cleopatra Octo
Slide 20: Network expansion through Sky Hospital – East Cairo
CHG continues its network expansion into underserved regions through Sky Hospital – East Cairo’s new State-of-the-Art Flagship project In line with CHG's strategy to meet growing demand for quality healthcare services that stems from underserved regions, the Group has is in the process of launching
Slide 21: First regional partnership in Saudi Arabia
With a plethora of experience, CHG ventures into a new expansion model and prepares for its first regional partnership in Saudi Arabia CHG has ventured into a strategic partnership with Mumtada Medical Company to support the launch a new 188-bed rehabilitation and LTC facility in Riyadh, KSA. Levera
Slide 22: Governance & Management Information
Governance & Management Information 22
Slide 23: CHG employs best-in-class corporate governance standards
CHG employs best-in-class corporate governance standards that are in line with the highest international standards… OPERATIONS ABC No Referral Fees Medical Council • CHG has a zero-tolerance approach to bribery and • CHG does not pay any referral fees or kickbacks to • CHG recently launched a group-
Slide 24: Board of directors dominated by independent and non-executive directors
… supported by a board of directors dominated by experienced independent and non-executive directors… The Group’s Board of Directors provide the necessary oversight and combination of expertise to thoroughly oversee the Group’s corporate governance framework, a cornerstone of the Group’s long-term s
Slide 25: Highly competent and ambitious management team
… and led by a highly competent and ambitious management team comprised of accomplished industry veterans with vast experience in the healthcare sector The Group is managed by a seasoned team that brings along deep industry experience to their respective positions gained in leading regional and mult
Slide 26: 9M 2024 in Review
9M 2024 in Review 26
Slide 27: Historical Financial Performance Overview
Historical Financial Performance Overview 9M2024 Snapshot ▪ Cleopatra Hospitals Group exceeded expectations, reporting record-breaking financial results for both the third quarter and first nine months of 2024. Consolidated revenue reached EGP 1,460mn in 3Q2024, totaling EGP 3,832mn for 9M2024, refl
Slide 28: Group Revenue Contribution by Hospital & Segment
Group Revenue Contribution by Hospital & Segment Revenue Contribution by Hospital – 9M23 Revenue Contribution by Segment – 9M23 CHG's consolidated revenue was substantially driven by its core business growth, with 4% 3% 12% inpatient services, surgical procedures and 22% 2% cardiac catheterization p
Slide 29: Core Business Driven Growth
Core Business Driven Growth Volume, ARP, & Revenue | Volume, ARP, & Revenue | Volume, ARP, & Revenue | Surgeries Outpatients Laboratory EGP 18,319 Rev. in EGP Mn. Vol. In 000’ Rev. in EGP Mn. Vol. In 000’ Rev. in EGP Mn. EGP 24,477 35,0 00 900 1,00 0 EGP 419 EGP 454 400 1,60 0 EGP 204 EGP 239 400 90
Slide 30: CLHO.CA Share Performance
CLHO.CA Share Performance CHG’s Price Performance | Rebased to 100 Valuation Multiples 1 Month VWAP Closing Dec 11th 14.1x 14 8.29 7.93 12.4x 10.8x 8.9x 8.5x 12 7.6x EV/EBITDA Valuation 10 Multiples (x) Volume (mn) 8 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 9M 2024 6 33.9x 4 29.8x 23.8x 2 P/E 17.7x 1
Slide 31: Appendix: Financial Statements
Appendix: Financial Statements 31
Slide 32: Consolidated Income Statement
Consolidated Income Statement Income Statement | EGP mn 3Q2023 3Q2024 % Change 9M2023 9M2024 % Change Revenues 947.5 1,459.7 54.1% 2532.0 3832.1 51.3% Cost of sales (626.5) (915.5) 46.1% (1689.3) (2424.1) 43.5% Gross profit 321.0 544.2 69.6% 842.7 1408.1 67.1% Gross Profit Margin 33.9% 37.3% 33.3% 3
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet | EGP mn 31 December 2023 30 September 2024 Non-current assets Fixed assets 2,176.6 3,416.0 Intangible assets 407.3 405.8 Right of use 133.2 138.5 Payment under investment - - Investment in associates 3.8 3.8 Total non-current assets 2,720.9 3,964.1 Current a
Slide 34: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement | EGP mn 30 September 2023 30 September 2024 Cash flow from operating activities: Profit before tax 433.2 788.5 Adjustments for: Depreciation 110.8 133.9 Right of use depreciation - - Amortization of intangible assets 11.9 1.6 Allowance for impair
Slide 35: Thank you
Thank you INVESTOR RELATIONS CONTACTS SHAREHOLDER INFORMATION Tel: +2 (0)2 2241 7471 EGX: CLHO.CA Email: farah.sami@cleohc.com Listed: June 2016 Website: https://www.cleopatrahospitals.com/en/investors/ Shares Outstanding: 1.4 billion 35
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