National Medical Care Co. · TADAWUL:4005
National Medical Care — H1 2023 Earnings Presentation
23 slides from National Medical Care's earnings presentation, Aug 16, 2023
Slide 1: Earnings presentation 1H 2023
Earnings presentation 1H 2023 16 August, 2023 | Riyadh, KSA
Slide 2: Care Overview and Strategy
Care Overview and Strategy National Medical Care Company Earnings Presentation - 16/08/23 2
Slide 3: Care: Shaped by Decades of Experience, Driven by Unmatched Passion, Pioneering the Future
Care: Shaped by Decades of Experience, Driven by Unmatched Passion, Pioneering the Future Leading Specialized Healthcare Provider in Riyadh FY22 Performance Highlights We are CARE: Patients Capacity Revenue • Improving lives by leveraging decades of accumulated experience 638.7 thousand 655 beds 917
Slide 4: Our Hospitals: Pioneering Excellence in Specialized Healthcare
Our Hospitals: Pioneering Excellence in Specialized Healthcare From inception, our hospitals have exemplified healthcare excellence with a specialized focus Care National Riyadh Care Hospital Kingdom of Saudi Arabia Hospital Founded in 1966, Care National Hospital (CNH) stands as a Established in 19
Slide 5: Saudi Arabia Healthcare Market Opportunity
Saudi Arabia Healthcare Market Opportunity Full of untapped potential, a growing older demographic with prevalent lifestyle diseases Underpenetrated market Ageing population 49% KSA total bed rate Population growth 52% 2.3 beds/1,000 residents 1.3% in 2022 20% 24% 0-14 years 24% 30% Saudi healthcare
Slide 6: Care Growth Strategy
Care Growth Strategy The strategy unfolds around four core objectives, supported by a carefully curated set of initiatives Our Vision Our Mission Providing distinctive care to improve To be at the forefront of healthcare the well-being of our community in Saudi Arabia through the pursuit of excellen
Slide 7: Care Growth Strategy: Efforts Focus
Care Growth Strategy: Efforts Focus Strategy stands to reshape the organization, boost Company's performance and transform patient care Impact Area Efforts Focus Performance Grow sustainably and Improve profit Diversify sources of outperform the market margins revenue People & Organization High empl
Slide 8: Operating and Financial Performance
Operating and Financial Performance National Medical Care Company Earnings Presentation - 16/08/23 8
Slide 9: Operating and Financial Performance Highlights
Operating and Financial Performance Highlights Solid operational efficiency paired with rapidly improving financial outcomes Revenue Surgeries 18,588 307.2 Total patients in 1H 2023 1H 2023 918 1H 2023 thousand +1% year-on-year 507 SAR mn +18% year-on-year 764 9,572 +14% year-on-year 12,722 Inpatien
Slide 10: Operational Trends
Operational Trends Patient numbers growth driven by more referrals, offset by the completion of a significant contract Operational Highlights Inpatients Admissions Quarterly Trend SAR mn 2Q2023 2Q2022 Δ% 1H2023 1H2022 Δ% (Admissions) Inpatient admissions 5,101 5,069 +1% 10,562 9,856 +7% +1% Outpatie
Slide 11: Income Statement
Income Statement Strong profitability improvement driven by robust operations, better pricing, and cost control efforts Income Statement Highlights Net Profit Development SAR mn 2Q2023 2Q2022 Δ% 1H2023 1H2022 Δ% (SAR mn) Revenues 245 216 +13% 507 428 +18% Cost of revenues (164) (150) +9% (335) (300)
Slide 12: Revenue Trends
Revenue Trends Revenue in 1H 2023 fuelled by increasing number of referrals from key clients and price hikes Revenue Development Revenue by Business Unit (1H 2023) (SAR mn) (SAR mn) 4 National Care Hospital, 44.7% +18% 3 34 2 SAR 507mn 507 1 (6) 59 2 (10) Riyadh Care Hospital, 55.3% 0 428 Revenue by
Slide 13: Costs Overview
Costs Overview Total expenses growth slower than the rise in revenue, creating a favourable operating leverage effect Total Expenses Breakdown (1H 2023) Cost of Revenues Breakdown (1H 2023) +13% (SAR mn) (SAR mn) 4 63.9% Salaries & benefits 1H 2023 YoY 3 25.2% Medicines & consumables 2.4% 2 SAR 386m
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights Solid balance sheet, marked by a significant cash reserve and a more efficient cash conversion cycle Balance Sheet Highlights Cash Conversion Cycle1 Trend SAR mn 2Q2023 4Q2022 Δ% 2Q2022 Δ% (Days) Total Non-Current Assets 757 657 +15% 664 +14% Total Current Assets 1,102 1,056
Slide 15: Receivables Management
Receivables Management Better receivables management through the efficient clearance of GOSI's collections backlog Trade Receivables1 Development Trade Receivables1 Structure (end of 2Q 2023) (SAR mn) (SAR mn) 39.6% GOSI -30% 23.2% Insurance 20.7% MoH 862 5.7% Cash 10.9% Other Trade Receivables1 Agi
Slide 16: Cash Flow Highlights
Cash Flow Highlights Cash flow from operations supported by stronger results and improvement in working capital Cash Flow Highlights Cash Flow From Operations Development SAR mn 2Q2023 2Q2022 Δ% 1H2023 1H2022 Δ% (SAR mn) Net Profit before zakat 57 50 +14% 121 87 +39% 281 362 Non-cash adjustments 18
Slide 17: Q&A Session
Q&A Session National Medical Care Company Earnings Presentation - 16/08/23 17
Slide 18: Appendix
Appendix National Medical Care Company Earnings Presentation - 16/08/23 18
Slide 19: Operating Performance Overview (1/2)
Operating Performance Overview (1/2) Total Patients Trend Surgeries Trend (Thousand patients) (Thousand surgeries) +9% CAGR +10% CAGR 19 639 16 532 13 13 453 396 10 362 254 158 193 140 136 295 339 385 256 227 FY18 -13% FY19 -9% FY20 +47% FY21 +20% FY22 FY18 -18% FY19 +26% FY20 +20% FY21 +19% FY22 Ri
Slide 20: Operating Performance Overview (2/2)
Operating Performance Overview (2/2) Occupied Beds Trend Bed Occupancy Trend (Occupied beds) (%) 82.3% -1% CAGR 80.3% 78.8% 79.2% 77.6% 539 516 526 508 519 298 298 286 283 292 241 218 240 225 227 FY18 -4% FY19 +2% FY20 -3% FY21 +2% FY22 FY18 FY19 FY20 FY21 FY22 Riyadh Care Hospital National Care Hos
Slide 21: Financial Performance Overview
Financial Performance Overview Total Revenue Trend EBITDA Trend (SAR mn) (SAR mn) +5% CAGR +11% CAGR 845 918 244 764 809 215 708 174 179 159 FY18 -7% FY19 +14% FY20 +5% FY21 +9% FY22 FY18 +9% FY19 +3% FY20 +20% FY21 +14% FY22 Net Profit Trend Margins Trend (SAR mn) (%) +29% CAGR 31.6% 170 26.6% 21.8
Slide 22: Contacts
Contacts Institutional investor contact Care Investor Relations Care.IR@care.med.sa +966-11-493-1881 ext. 123 & 135 National Medical Care Company Earnings Presentation - 16/08/23 22
Slide 23: Disclaimer
Disclaimer All information included in this document is for general use only and has not been independently verified, nor does it constitute or form part of any invitation or inducement to engage in any investment activity, nor does it constitute an offer or invitation or recommendation to buy or su
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