Mlp Saglik Hizmetleri As Class B · BIST:MPARK
Mlp Saglik Hizmetleri As Class B — MLP Care — H1 2018 Earnings Presentation
28 slides from Mlp Saglik Hizmetleri As Class B's earnings presentation, Aug 14, 2018
Slide 1: MLP Care H1 2018 Presentation
MLP Care H1 2018 Presentation 14 August 2018
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
Slide 3: Muharrem Usta, Chairman & CEO
Muharrem Usta Chairman & CEO 3
Slide 4: Executive Summary
Executive Summary Strong growth continues with H1 revenues growing at 17.7% and Comparable EBITDA at 24.9% despite the global headwinds and early presidential elections Secular growth trend in foreign medical tourism and top-up continues (63.5% and 96.4% yoy growth respectively) Two new openin
Slide 5: Capacity Expansion on Track in H1 2018
Capacity Expansion on Track in H1 2018 +2 +500 New Hospital New Beds in 2018 in 2018 17 Cities 31 Hospitals ~5.900 17.500+ Staff in Total Beds in Total 2.100+ Doctors 5
Slide 6: Solid Financial Performance in H1 2018
Solid Financial Performance in H1 2018 800,0 Revenue EBITDA and EBITDA % 3.500 700,0 25,00% 3.000 600,0 20,00% 17.0% 17.8% 2.500 15.9% 16.8% 500,0 2,576 12.9% 2.000 15,00% 400,0 409 1.500 1,843 300,0 10,00% 1,470 1.000 1,248 200,0 262 238 250 209 5,00% 500 100,0 0 - 0,00% 2015 2017 H1 H1 2015 2017 H
Slide 7: Two New Hospitals Added to Our Hospital Network
Two New Hospitals Added to Our Hospital Network Pendik Mersin Location İstanbul Mersin Opening Date March 2018 May 2018 Key Statistics 62,000 m2 35,000 m2 New hospitals were opened on budget and schedule The ramp up of the hospitals is in accordance with the plan 7
Slide 8: Double Digit Growth in Majority of Payor Types
Double Digit Growth in Majority of Payor Types Revenue Breakdown by Payor Type – H1 2018 Revenue from PMI, Top-up & Other 31% Contracted Institutions grew 63% Medical 8% Tourism by 6x in the last five years 9% Top-up Insurance continue to lead the growth SSI 30% (96% growth in H1 2018) PMI, Top-
Slide 9: Top-up Insurance Market Continues to Grow
Top-up Insurance Market Continues to Grow and positively impacts MLP Care’s revenues # of People With Insurance (PMI and Top-up) in Turkey – 000s Growth CAGR (2014-2017) (H1 2017-H1 2018) 3500,0 2,678 2,703 2,927 2,214 2,281 6.9% 2,478 18.1% 3000,0 2500,0 134 405 676 782 64 119.1% 517 51.2% 2000,0 1
Slide 10: Medical Tourism Revenue Margin Increases
Medical Tourism Revenue Margin Increases Medical Tourism Revenue (TLm) Diversified and Balanced Geography: • Europe 40% 19.3%1 120 23.8% • Middle East and Africa 30% 15 100 125 • Former CIS and the rest 30% 34 80 Strong marketing through offices / 60 77 affiliations in 15 countries with Medical
Slide 11: Positive Effects of the Amendment of SUT Prices
Positive Effects of the Amendment of SUT Prices As of July 5, 2018, Healthcare Applications Complex surgeries in private sector 1 Comminuque of the Social Security Institution («SUT») prices are amended. 48% 36% • The prices of inpatient procedures 19% 17% 16% 14% especially more complex 15% 14% p
Slide 12: Burcu Öztürk, CFO
MLPCARE Burcu Oztiirk CFO 12
Slide 13: Solid Financial Performance in Q2 2018 and H1 2018
Solid Financial Performance in Q2 2018 and H1 2018 Revenue (TLm) Adj. EBITDA¹ (TLm) 17.7% 24.9% 1600 300 19.4% 1400 250 1200 1000 17.3% 200 1,470 262 800 150 8.4% 250 600 100 400 720 50 110 200 0 0 Q2 2018 H1 2018 Q2 2018 H1 2018 H1 2018 2 Comparable Adj. EBITDA is at TL262m without the negative i
Slide 14: Strong Growth in All Revenue Segments in H1 2018
Strong Growth in All Revenue Segments in H1 2018 Domestic Patient Medical Tourism Ancillary Business Revenues Revenues H1 2018: H1 2018: H1 2018: TL119m TL1,226m TL125m 30.6% growth y-o-y 13.4% growth y-o-y 63.5% growth y-o-y Q2 2018: Q2 2018: Q2 2018: TL65m TL589m TL66m 48.0% growth y-o-y 11.4% gro
Slide 15: Domestic Hospital Business Revenue up 13.4%
Domestic Hospital Business Revenue up 13.4% Outpatient Revenues (TLm) Inpatient Revenues (TLm) 19.0% 9.9% 34.9% 500 740 2.9% 450 11.8% 495 6.8% 145 720 19 730 400 700 (66) 46 350 416 680 660 300 665 640 250 620 200 600 H1 2017 Volume Price H1 2018 H1 2017 Volume Price H1 2018 Average Revenue Per Vis
Slide 16: Cost Savings and Smart Cost Management
Cost Savings and Smart Cost Management Cost of Service and G&A Expenses as a % of Material costs as a % of Revenues revenue declined, helped by the Adj. EBITDA Margin 16.8% 17.0% patient mix impact and decline in share of laboratory services business revenues (with higher 6.9% 6.6% material costs)
Slide 17: FX Exposure Mitigated by Hedging
FX Exposure Mitigated by Hedging 0,0 FX BASED NET DEBT (in EUR m) NET DEBT 204 Before Hedging After Hedging 0,0 0,0 29% 45% 55% 104 71% 0,0 81 Percentage 53 0,0 Local Currency Local Currency Hard Currency Hard Currency - 2017 Q1 2018 H1 2018 H1 2018 (Before (After Nominal TL957m TL957m Hedging) Hedg
Slide 18: FX Position of Income Statement
FX Position of Income Statement Hard After Hard Currency as % of Hedging TLm H1 2018 Currency Total Revenues Transaction Domestic Hospital Revenue 1,226 - - - Foreign Medical Tourism 125 125 9% 9% Ancillary 119 - - - Total revenues 1,470 125 9% 9% Material (328) (33) (2%) (2%) Doctor (334) - - - Per
Slide 19: Investments Continued and Operating Cash Flow Slightly Declined
Investments Continued and Operating Cash Flow Slightly Declined Maintenance Capex (TLm) Total Capex (TLm) Operating Cash Flow / EBITDA 127.0% 2.9% 12.7% 92.1% 2.8% 11.4% 300,0 50,0 200,0 250,0 40,0 150,0 43 167 200,0 266 230 30,0 35 159 100,0 150,0 20,0 100,0 10,0 50,0 50,0 - - - H1 2017 H1 2018 H1
Slide 20: Outlook & Prospects
Outlook & Prospects Muharrem Usta – Chairman & CEO 20
Slide 21: Outlook & Prospects
Outlook & Prospects 2018 is expected to be a challenging environment due to currency volatility and increasing inflation. Our targets are: Operational targets Increase operational excellence and adjust our targets upwards Enhance patient satisfaction Improve the mix on higher revenue and EBITD
Slide 22: MLP Care
CARE
Slide 23: Closing Remarks
Closing Remarks Muharrem Usta – Chairman & CEO 23
Slide 24: Closing Remarks
Closing Remarks Strong growth maintained in H1 2018 Capacity expansion on track with two new hospitals in 2018 Cash injection from IPO used to lower net debt Decreased leverage ratio is protected from the currency effect for future by hedging A decrease in loss at the bottomline driven by
Slide 25: 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/
Slide 26: Historical P&L Statements
Historical P&L Statements Reviewed Reviewed TLm H1 2018 Q2 2018 Q2 2017 H1 2017 Revenue 1,470 1,248 720 614 Cost of service (-) (1,231) (1,055) (619) (522) Gross Profit 239 193 101 93 General administration expenses (-) (123) (83) (63) (40) Other income from operations 157 162 90 47 Other expenses f
Slide 27: Historical Balance Sheet
Historical Balance Sheet Reviewed Audited TLm June 30, 2018 December 31, 2017 Cash and cash equivalents 372 218 Trade receivables 787 750 Inventory 75 51 Short term other assets 171 142 Current assets 1,404 1,161 Fixed assets 1,290 1,220 Deferred tax assets 257 197 Long term other assets 158 143 Non
Slide 28: Reconciliation from Reported EBITDA to Adjusted EBITDA
Reconciliation from Reported EBITDA to Adjusted EBITDA TLm H1 2018 H1 2017 Q2 2018 Q2 2017 Net Profit / (Loss) (8) (20) (10) (3) Tax Income from Operations (46) (8) (14) 0 Depreciation and Amortization of Tangible and Intangible Fixed Assets 90 84 46 42 Total Interest Expenses, Net of Interest Incom