Ec Healthcare · HKEX:2138
Ec Healthcare — FY2023/24 Earnings Presentation
20 slides from Ec Healthcare's earnings presentation, Jun 28, 2024
Slide 1: FY2023/24 Annual Results Investor Presentation
FY2023/24 ANNUAL RESULTS INVESTOR PRESENTATION 28 JUNE 2024 Bring Health, Beauty and Happiness to more People
Slide 2: Financial Performance
Financial 4 Performance re
Slide 3: Key Financial Highlights
Financial Performance Key Financial Highlights YoY: FY23 vs FY24 Full Year Gearing EPS Ratio Sales Net Volume Revenue EBITDA Profit -1.6 HK Cent 38.3% +8.3% +8.7% -9.8%* -85.3%* Full Year Debt/EBITDA YoY YoY YoY YoY DPS Ratio 0.5 HK Cent 2.4x CASH ON ROE HAND HK$4,210M HK$4,211M HK$388M HK$16M *If e
Slide 4: Revenue Mix
Financial Performance Revenue Mix HK$ M HK$ M HK$ M Medical1 Mainland Cross Border Mainland China Visitors (MCV) in HK & Macau Aesthetic Medical and Beauty and Wellness Macau, China HK Locals & Macau Locals & Mainland China Locals Veterinary and Multi-channel Networking Hong Kong, China 4,211 4,211
Slide 5: Operation Highlights - Cost Structure and Margin Squeeze
Operation Highlights - Cost Structure and Margin Squeeze FY23 Margin Squeeze FY24 1H FY24 2H FY24 Roll-up Strategies Revenue • Revenue mix change from only 28% in • Medical inflation (HK$ M) 3,875 FY19 to 64% medical in FY24 2,121 2,090 4,211 • Increasing GDP and medical expenditure • M&A and organi
Slide 6: Financial Performance - Existing Business
Financial Performance - Existing Business Pre FY19 & M&A Cohort FY19 - 24 Revenue Contribution EBITDA Contribution (excluding HQ overhead and G&A) HK$ M HK$ M FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 1,906 257 253 Margin: Margin: 111 15.9% 13.3% 1,613 201 18 433 Margin: 43 279 22.
Slide 7: M&A Strategy and EBITDA to Net Profit Waterfall
Financial Performance - M&A Strategy & EBITDA to Net Profit Waterfall HK$ M FY19 FY20 FY21 FY22 FY23 FY24 MERGERS & ACQUISTIONS M&A 0.2 13 90 201 257 253 Existing EBITDA Business 598 571 442 525 463 402 DEC / 2023 (recap) Acquired laboratory Sub-total 598 584 532 726 720 655 equipment distribution b
Slide 8: Capital Management
Financial Performance Capital Management Capital Structure as at 31 Mar 2024 Debt Maturity Profile as at 31 Mar 2024 TOTAL DEBT GEARING RATIO1 2.2 Years Average Debt Maturity 38.3% Weighted Average Interest Rate of 5.7% HK$921M 495 UNDRAWN CASH ON HK$ M 242 FACILITIES HAND2 289 HK$600M HK$593M 137 2
Slide 9: Operation & Strategy Highlight
Operation & Strategy Highlight
Slide 10: Operation Highlights
Operation Operation Highlights Highlights No. of Specialist Repurchase No. of Discipline Rate 2 Service Points / Veterinary Discipline 69.0% 182 39 + 6 Existing Customer Revenue Contribution 3 Total GFA -6.9% YoY Registered Doctors & Vets 63.5% 657,000 337 + 56 Customers’ sq ft Satisfaction Rate 4 N
Slide 11: Cost Structure Rationalization
FY23 Baseline Operation Operation Cost Structure Rationalization Highlights • Excluding new M&A from FY23 / 24 - Surecare & new distribution business • Excluding new organic expansion in FY23 / 24 - AMAH Vet Hospital Saving against FY23 Baseline FY24 Target HK$85M 1 Registered Practitioner & 2 Renta
Slide 12: Key Sub-Pillar Business Performance
Key Sub-Pillar Financial Business Performance (Including HQ Overhead and G&A) Performance Aesthetic Medical Dental Health Screening & Lab Imaging Medical Specialty Pain Management Veterinary INFANCY (0 – 24 months) DEVELOPING (25 – 48 months) MATURE (Beyond 48 months) 30% Pillar 1 Infancy stage cons
Slide 13: Key Sub-Pillar Half-on-Half Performance
Key Sub-Pillar Financial Business Half-on-Half Performance (Including HQ Overhead and G&A) Performance INFANCY DEVELOPING MATURE 2H FY24 vs. 1H FY24 (0 – 24 months) (25 – 48 months) (Beyond 48 months) EBITDA EBITDA Margin EBITDA EBITDA Margin EBITDA EBITDA Margin Change in (HK$M) (p. pt) (HK$M) (p.
Slide 14: Operation Highlights - Technology Development
TTIPP Partnership Operation Highlights Development Technology • “Fung House” located at 19-20 Connaught Road, Central, Hong Kong has been renamed as the “EC FUNG HOUSE Healthcare Tower (Central)” on 1 June Telecommunication 2024, signifies the Group’s first step in strategic EC HEALTHCARE TOWER posi
Slide 15: Strategy & Outlook - Shareholder Value Creation
Strategy & Outlook - Shareholder Value Creation 1 Strong Discipline in Diligent post-M&A integration of maturing assets into EC Healthcare's one-stop healthcare service Post-M&A integration platform via corporatization strategy Strong governance to manage synergy creation across fianancial, operatio
Slide 16: Strategy & Outlook
Strategy & Outlook igh
Slide 17: EC Healthcare Market Outlook and Growth Prospects
Strategy & Outlook EC Healthcare Market Outlook and Growth Prospects Market Trends • • Cautious economic outlook amid prolonged inflation and uncertainties Growing healthcare needs driven by aging populations and technology Favorable Government • • Primary Healthcare Blueprint promoting public-priva
Slide 18: Appendix
Appendix “gn
Slide 19: Key Financial Metrics
Appendix Key Financial Metrics For the year ended 31 For March the year ended 31 March FY23 FY24 Changes Basic Earnings per share (HK cents) 5.9 -1.6 (127%) EBITDA margin 11.1% 9.2% -1.9 p.pt Net profit margin 2.8% 0.4% -2.4 p.pt Dividend per share for the year (HK cents) 10.0 0.5 (95%) Return on eq
Slide 20: Disclaimer
Appendix Disclaimer This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities (the “Securities”) of EC Healthcare (the "Company") or any of its subsidiaries or affiliates (together, the “Gr