Med Life SA · BVB:M
Med Life SA — Investor Presentation (December 2018)
30 slides from Med Life SA's investor presentation, December 2018
Slide 1: Investors and Analysts Presentation
Investors and Analysts Presentation
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of Med Life SA’s securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy Med Life SA’s securities. Neither this presentat
Slide 3: Contents
CONTENTS PAGE I. INTRODUCTION TO MEDLIFE ………… 4 A. KEY INVESTMENT HIGHLIGHTS ………… 5 B. HOW WE GREW ………… 7 C. MEDLIFE NETWORK ………… 10 D. BUSINESS OVERVIEW ………… 11 E. 2018 KEY EVENTS ………… 14 II. MARKET OVERVIEW ………… 16 III. GROUP FINANCIAL SNAPSHOT ………… 21 ` M E D L I F E G R O U P I n v e s t o r s a
Slide 4: I. Introduction to MedLife
I. INTRODUCTION TO MEDLIFE Founded in 1996, MedLife is the leading private healthcare provider in Romania. The Company operates the widest network of clinics, one of the large networks of medical laboratories, general and specialised hospitals and it has the largest client database for Healthcare Pr
Slide 5: A. Key Investment Highlights
A. KEY INVESTMENT HIGHLIGHTS Expected - highest growth of healthcare market in CEE with a 1 Romania – attractive & growing healthcare market CAGR for private healthcare of 9.6% over 2018 – 2023 Pro-Forma Sales 2017: RON 638 mln MedLife - the leading private healthcare operator in 2 Romania and o
Slide 6: Highly Synergistic Cash Based Business Model
HIGHLY SYNERGISTIC CASH BASED BUSINESS MODEL Flow of Referrals Among Business Lines - Unique Revenue Capture Opportunities SOURCES OF CLIENT BASE MED LIFE SERVICE LINES PAYMENT % of Total Sales 2018 Clinics 18% NHIH Clients paying out of pocket or covered by NHIH Laboratories Referrals Trust buildin
Slide 7: B. How We Grew
B. HOW WE GREW 2010 2016 1999 2004 Our own pharmacy chain is launched, PharmaLife MedLife develops a new business division, Stomatology, as well as the second brand, “Sfânta 1996 The first own The first hyperclinic in our Maria” medical laboratory portfolio, MedLife Grivița 2010 2015 2006 2007 The f
Slide 8: Track record in organic growth and acquisitions
MedLife has a successful track record in management of organic growth and acquisitions ORGANIC ACQUISTIONS M E D L I F E G R O U P I n v e s t o r s a n d A n a l y s t s P r e s e n t a t i o n | Page 8
Slide 9: National footprint captures growth in all regions
NATIONAL FOOTPRINT CAPTURES GROWTH IN ALL REGIONS* HYPERCLINICS/CLINICS H O S P I TA L S L A B O R AT O R I E S & S P S 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 2 1 2 3 1 1 1 1 1 1 2 1 2 2 1 6 1 1 1 1 1 4 1 2 18 7 1 2 11 1 1 3 1 1 1 1 1 Legend: Day inpatient Inpatient Legend: Laboratories Sampling Points Leg
Slide 10: C. MedLife Network
C. MEDLIFE NETWORK * The two brands of MedLife Group - the only private medical Romanian service company that can use its synergies at national level to capture competitive advantages • 20 Hyperclinics • 36 Clinics • 10 Hospitals • 25 Laboratories • Approx. 160 Sampling points • 9 Dental Clinics • 1
Slide 11: D. Business Overview
D. BUSINESS OVERVIEW HEALTHCARE PREVENTION CLINICS HOSPITALS LABORATORIES PHARMACIES STOMATOLOGY PACKAGES (HPP) Mandatory Outpatient services Maternity, specialist Full range of tests Prescription, OTC Wide range of dental ALL KEY occupational health including Imagistics. and generalist facilities p
Slide 12: Business Segments: Hyperclinics and Clinics
BUSINESS SEGMENTS MEDLIFE: A PIONEER IN LARGE SCALE CLINICS AND LARGE SCALE HIGH-END LAB OPERATION • One stop shop concept - MedLife hyperclinics includes medical ambulatory specialties, providing in one single place: clinical examinations and imaging • Hyperclinics have over 20 medical offices and
Slide 13: Business Segments: Hospitals
BUSINESS SEGMENTS MEDLIFE: LARGEST OPERATOR OF PRIVATE HOSPITALS* • MedLife hospitals cover a wide range of medical and surgical specializations, reuniting the best medical staff, with significant national and international expertise • 10 hospitals – 7 inpatient hospitals and 3 day inpatient. Life M
Slide 14: E. 2018 Key Events
E. 2018 KEY EVENTS ACQUISITIONS • 100% of the shares in Polisano (approved by the Competition Council in April 2018) • 90% of the shares in Ghencea Medical Center (finalized in May 2018) • 80% of the shares in Solomed Group (finalized in May 2018) • 100% of the shares in the medical platform SfatulM
Slide 15: 2018 Key Events: Credit Facilities and Share Buy-back
2018 KEY EVENTS CREDIT FACILITIES CONTRACTED BY THE GROUP • MedLife signed a new syndicated credit facility with Banca Comercială Română, Raiffeisen Bank, BRD Groupe Société Générale and Banca Transilvania for refinancing its existing facilities, extending the maturity of the loans, rearranging the
Slide 16: II. Market Overview: Favourable Macroeconomic Environment
II. MARKET OVERVIEW FAVOURABLE MACROECONOMIC ENVIRONMENT • The Romanian economy expanded by 6.9% year-on-year in 2017 (2016: 4.8%), its strongest rate since 2008 and one of the highest in the EU, significantly exceeding Romania's potential of 4.1% as estimated by the European Commission in its Sprin
Slide 17: Market Overview: Net Salary and Household Expenditure
MARKET OVERVIEW FAVOURABLE MACROECONOMIC ENVIRONMENT Living standards improve on the back of economic welfare with total unemployment declining and net income and monthly expenditure increasing •The average net salary follows an increasing trend with record increase of 12% in 2017 and is expected to
Slide 18: Market Overview: GDP per Inhabitant vs EU-28
MARKET OVERVIEW FAVOURABLE MACROECONOMIC ENVIRONMENT CHANGE OF GDP PER INHABITANT IN PURCHASING POWER STANDARDS (PPS) IN RELATION TO THE EU-28 AVERAGE, 2007-2015 (percentage points difference between 2007 and 2015) Macroeconomic • Romania has increased with 5-15 Environment percentage points & even
Slide 19: Healthcare Market Assessment
MARKET OVERVIEW HEALTHCARE MARKET ASSESSMENT Value (EUR bn) and change (%) of the private healthcare market in Central Europe, 2015-2023 Private healthcare Because the development of private investment was market boosted by the recently introduced tax deductibility, Outpacing the rest of CE private
Slide 20: Healthcare Market Growth Fundamentals
MARKET OVERVIEW HEALTHCARE MARKET GROWTH FUNDAMENTALS The Romanian private healthcare industry has developed considerably over the Current health expenditure last few years. as percentage of GDP, 2015 Opportunities include: • A reduction in the levels of satisfaction of patients with public services
Slide 21: III. Group Financial Snapshot
III. GROUP FINANCIAL SNAPSHOT KEY MESSAGES 9 MONTHS 2018 Sales increased by : + 32.0% Pro-forma 9M2018 vs. IFRS 9M2017 SALES + 26.2% IFRS 9M2018 vs. IFRS 9M2017 vs. market increase by approx. 10% + 12.8% like2like Stable margin: 12.4% Pro-forma 9M2018 vs. 12.7% IFRS 9M2017 (fig_1 below) Absolute val
Slide 22: Key Messages 9 Months 2018
KEY MESSAGES 9 MONTHS 2018 IFRS EBITDA is consistent with CF before WC and other monetary changes, as IFRS EBITDA was 70.3m RON, while CF before WC and other monetary changes was 70m RON. 9.1% EBITDA Split of Pro-forma EBITDA between Owners of the Group / NCI for 9M2018: - 90.9% to Group Owners - 9.
Slide 23: MedLife Group 9M2018 Financial Snapshot
MEDLIFE GROUP 9M2018 FINANCIAL SNAPSHOT Consolidated Statement of Financial Position Consolidated Statement of Profit and Loss M E D L I F E G R O U P I n v e s t o r s a n d A n a l y s t s P r e s e n t a t i o n | Page 23
Slide 24: 9M2018 Financial Snapshot: Cash Flow
MEDLIFE GROUP 9M2018 FINANCIAL SNAPSHOT Consolidated Statement of Cash Flow IFRS EBITDA is consistent with operating CF before WC and other monetary changes M E D L I F E G R O U P I n v e s t o r s a n d A n a l y s t s P r e s e n t a t i o n | Page 24
Slide 25: 9M2018 Financial Snapshot: Opex Evolution
MEDLIFE GROUP 9M2018 FINANCIAL SNAPSHOT OPEX EVOLUTION Note: The Group recorded a 1.3 p.p. increase of operating expenses as % of sales in 9M2018 as compared to 9M2017. A. 0.4 p.p. decrease of “Consumable materials and repair materials” as % of Sales, generated by increased cost synergies and volume
Slide 26: Key Operational Metrics for 9M2018
KEY OPERATIONAL METRICS FOR 9M2018 M E D L I F E G R O U P I n v e s t o r s a n d A n a l y s t s P r e s e n t a t i o n | Page 26
Slide 27: Sales and Key Operational Metrics Evolution 2015-2018
SALES AND KEY OPERATIONAL METRICS EVOLUTION 2015-2018 Clinics sales evolution Hospitals sales evolution 180,000,000 166,650,648 169,246,952 1,400,000 140,000,000 100,000 160,000,000 119,106,274 1,200,000 118,168,968 90,000 120,000,000 140,000,000 130,109,363 104,977,229 80,000 1,153,218 Hospitals Sa
Slide 28: Sales and Key Operational Metrics Evolution 2015-2018
SALES AND KEY OPERATIONAL METRICS EVOLUTION 2015-2018 Stomatology sales evolution 40,000,000 37,565,681 180,000 35,000,000 33,092,445 160,000 Stomatology Sales / Visits 140,000 30,000,000 120,000 25,000,000 100,000 20,000,000 18,504,217 Sales 99,682 77,677 80,000 Visits 15,000,000 60,000 69,111 10,0
Slide 29: Sales and EBITDA Evolution
SALES AND EBITDA EVOLUTION CONSISTENT TRACK RECORD OF STRONG GROWTH EBITDA EVOLUTION SALES (RON mln) Pro-forma EBITDA (RON mln) 391 503 623 606 Revenue Distribution by Business Segment 700 10 6 600 30 26 38 33 1 500 24 84.0 30.0% 115 104 19 Other revenues 81.7 82.0 Sales (RON mln) 1 Pharmacies 25.0%
Slide 30: Thank you!
Thank you! © Med Life