Life Healthcare Group Holdings Limited · JSE:LHC
Life Healthcare — H1 2024 Earnings Presentation
30 slides from Life Healthcare's earnings presentation, May 2024
Slide 1: Unaudited Group interim results for the six months ended 31 March 2024
Unaudited Group interim results for the six months ended 31 March 2024, and cash dividend declaration
Slide 2: Highlights
HIGHLIGHTS Leading provider of value-based care Patient-centred Acute PPD¹ Revenue Q2-2024 margin Concluded FMC² care through innovative Southern growth growth acquisition contracting and reimbursement Africa (SA) models 2.7% 5.9% >17% Diversified offering Increase in doses Revenue growth Full
Slide 3: Highlights: Outlook statement FY2024 progress
HIGHLIGHTS: OUTLOOK STATEMENT FY2024 PROGRESS ▪ Increase occupancies ▪ 67.0% vs 65.9% ▪ Targeting PPD growth of c.3% ▪ 2.3% (acute 2.7%) ▪ Grow non-acute services: ▪ Additional imaging transactions ▪ Imaging deal at Life Hilton Private Hospital Southern ▪ Conclude FMC acquisition ▪ FMC concluded Afr
Slide 4: Strategy
STRATEGY | i
Slide 5: Group overview: diversified offering
GROUP OVERVIEW DIVERSIFIED OFFERING Southern Africa International ▪ 63 healthcare facilities ▪ 49 active and contracted third party ▪ 8 308 hospital beds manufacturing sites ▪ 602 mental health beds around the world ▪ 287 rehabilitation beds ▪ 1 145 renal dialysis stations ▪ 5 oncology centers ▪ Ima
Slide 6: Strategic overview | Southern Africa
STRATEGIC OVERVIEW | SOUTHERN AFRICA Growing/re-structuring our Value-based care Expansion in complementary/ network of facilities (VBC) contracting adjacent services Innovative Mental Occ. Leading Imaging Asset Grow Strategic contracting, health efficient Renal and Radio - health portfolio underlyi
Slide 7: SA operational review
e Life. Healthcare SA OPERATIONAL REVIEW
Slide 8: H1-2024 | Southern Africa
H1-2024| SOUTHERN AFRICA H1-2024 H1-2023 % R'm R'm change Southern Africa revenue (Rm) Revenue 11 228 10 598 5.9 11 228 Acute hospitals 9 698 9 190 5.5 10 598 696 Complementary services 834 773 7.9 9 499 635 834 Healthcare services (HCS) 696 635 9.6 773 688 Normalised EBITDA 1 758 1 842 (4.6) 612 Ac
Slide 9: H1-2024 | Acute hospitals
H1-2024| ACUTE HOSPITALS H1 Occupancy % Q1 & Q2 Occupancy % Monthly occupancy % 69.8 69.3 74.2 66.6 69.3 70.7 65.5 64.0 68.0 61.2 64.9 73.5 61.3 69.2 57.7 64.9 65.4 54.8 54.0 63.0 53.2 H1 22 H1 23 H1 24 Q1 22 Q2 22 Q1 23 Q2 23 Q1 24 Q2 24 Oct Nov Dec Jan Feb Mar Occupancy % Occupancy % H1 2024 H1 20
Slide 10: H1-2024 | Complementary services
H1-2024| COMPLEMENTARY SERVICES Mental health & acute Renal dialysis (RD) treatments MRI/CT/PET-CT/Spect rehabilitation occupancy (%) scan volumes 103,971 70.4 102,432 21,422 69.9 20,001 18,177 65.7 95,795 13,066 92,192 88,732 5,609 H1 22 H1 23 H1 24 H1 22 H2 22 H1 23 H2 23 H1 24 H1 22 H2 22 H1 23 H
Slide 11: H1-2024 | Complementary services – Renal dialysis
H1-2024| COMPLEMENTARY SERVICES – RENAL DIALYSIS ▪ FMC acquisition: • 26 February 2024 SA competition commission (CC) approval • 1 April 2024 operational for SA • Cash consideration of R367m paid for SA business • Broadened countrywide footprint • Expanded the patient base • Initial focus on operati
Slide 12: 2024 | Southern Africa – trading to end April
2024| SOUTHERN AFRICA – TRADING TO END APRIL YTD Apr YTD Apr H1-2024 % 2024 2023 % YTD April occupancy % R’m change R'm R'm change 70.9 Revenue 11 228 5.9 13 267 12 328 7.6 66.3 67.0 67.6 65.4 65.9 Acute hospitals 9 698 5.5 11 484 10 681 7.5 58.5 Complementary services 834 7.9 975 899 8.5 Healthcare
Slide 13: Life Molecular Imaging (LMI) review
LIFE MOLECULAR IMAGING (LMI) REVIEW
Slide 14: LMI | Activities and sales breakdown
LMI| ACTIVITIES AND SALES BREAKDOWN LMI sales USDm NeuraCeq® volumes 27 222 Total CAGR: 21.9% 8 481 CAGR: 23.7% Commercial CAGR: 38.1% 19 798 1,820 5 858 16 499 15 024 4 984 4 864 2,433 11 632 3 844 1,573 996 1,316 1,717 2,134 2,408 1,707 4,228 964 1,580 1,841 2,151 1,163 H1 21 H1 22 H1 23 H2 23 H1
Slide 15: LMI | NeuraCeq - sales growth accelerating
LMI| NEURACEQ® - SALES GROWTH ACCELERATING 3 000 NeuraCeq® Monthly Volumes 2 700 • From October 2023 full 2000 reimbursement for PET-CT 1800 diagnosis for Alzheimers in the US 1600 473 1400 516 • Evidenced by acceleration in 1200 530 sales growth after reimbursement 1000 491 463 decision 359 459 800
Slide 16: Financial review
e Life. Healthcare FINANCIAL REVIEW
Slide 17: H1-2024 | Results overview
H1-2024| RESULTS OVERVIEW Leading provider of value-based care Strong activity growth in most Group Revenue SA Revenue LMI Revenue Patient-centred businesses results in strong care through innovative contracting and revenue growth 7.8% 5.9% 77.5% reimbursement models Higher costs not compensat
Slide 18: H1-2024 | Disposal of AMG
H1-2024| DISPOSAL OF AMG ▪ AMG is presented as a discontinued operation in the current and prior period ▪ The disposal was concluded on 31 January 2024 after the completion of all conditions precedent ▪ Profit on disposal: ▪ Profit recognised in H1-2024 R2 821m ▪ Profit recognised in FY2023 (R990m)
Slide 19: H1-2024 | Statement of profit or loss
H1-2024| STATEMENT OF PROFIT OR LOSS 2024 2023 % R’m R’m change Revenue 11 741 10 887 7.8 Normalised EBITDA 1 746 1 797 (2.8) ▪ Results presented include continuing operations. AMG included as Normalised EBITDA part of discontinued operations in current and prior period 14.9% 16.5% (excluded from th
Slide 20: H1-2024 | Segmental results
H1-2024| SEGMENTAL RESULTS 2024 2023 % R’m R’m change Revenue 11 741 10 887 7.8 2024 2023 % Southern Africa 11 228 10 598 5.9 R’m R’m change International 513 289 77.5 Corporate 37 45 (17.8) Normalised EBITDA 1 746 1 797 (2.8) Income 852 808 5.4 Southern Africa 1 721 1 797 (4.2) Costs (815) (763) (6
Slide 21: H1-2024 | Earnings per share
H1-2024 | EARNINGS PER SHARE % 2024 2023 change ▪ Total EPS/HEPS impacted by: Weighted average number of shares (million) 1 441 1 443 (0.1) ▪ Net profit on disposal of AMG, EPS (cents) 242.8 37.9 540.6 which includes an exchange gain realised on the disposal of Net profit on disposal of AMG (177.7)
Slide 22: H1-2024 | Financial position
H1-2024 | FINANCIAL POSITION Mar 2024 Sep 2023 R’m R’m Non-current assets 16 219 16 201 ▪ Financial position strengthened Property, plant and equipment 10 512 10 572 ▪ Special dividend paid 8 April 2024 Goodwill & Intangibles 3 396 3 287 ▪ Total capex committed for FY2024 Other 2 311 2 342 excluding
Slide 23: H1-2024 | Debt
H1-2024 | DEBT ▪ Refinancing of debt ▪ During April 2024 and May 2024, the Group successfully raised R1.055 billion and R445 million respectively through its Domestic Medium Term Notes (DMTN) programme. ▪ The Group then early settled R1.25 billion of its South African term debt thereby extending the
Slide 24: H1-2024 | Cash flow from continuing operations
H1-2024 | CASH FLOW FROM CONTINUING OPERATIONS 2024 2023 % R’m R’m change Cash generated from operations 1 028 269 >100% Transaction costs paid (5) - ▪ Cash generated from operations Net interest paid (133) (218) in prior period impacted by an IT hardware failure at a service Tax paid (207) (270) pr
Slide 25: FY2024 | Capital allocation & investing for growth
FY2024| CAPITAL ALLOCATION & INVESTING FOR GROWTH Southern Africa LMI ▪ Facility expansions covering: (2024/2025) ▪ LMI ▪ ICU / HC beds: 59 ▪ Small capex for manufacturing ▪ General ward: 46 kits for NeuraCeq® Organic growth and ▪ Acute rehabilitation: 24 ▪ Additional approvals in other innovation o
Slide 26: FY2024 | Capital allocation & investing for growth
FY2024| CAPITAL ALLOCATION & INVESTING FOR GROWTH Southern Africa LMI ▪ Embedded footprint ▪ Small capex requirement for LMI ▪ Organic volume growth Maintenance Grow and sustain existing ▪ Drive optimal occupancy capex businesses levels ▪ Optimise current portfolio of facilities and beds FY24 capex
Slide 27: H2 Outlook
e Life. Healthcare H2 OUTLOOK
Slide 28: National Health Insurance (NHI) Act
NATIONAL HEALTH INSURANCE (NHI) ACT ▪ Life Healthcare have over the years engaged constructively on NHI and we have made our position clear: we unequivocally support the outcomes visualised by the Act, quality healthcare services for all. ▪ The focus of our engagement to date and in future will be t
Slide 29: FY2024 | Outlook statement
FY2024 | OUTLOOK STATEMENT Leading provider of value-based care Patient-centred care through ▪ Occupancies at 70% innovative contracting and ▪ Targeting PPD growth of c.2% reimbursement models ▪ Continuing improvement of EBITDA margin from H1-2024 Southern ▪ Detailed focus on operational efficiencie
Slide 30: Questions
e Life. Healthcare QUESTIONS
Life Healthcare Group Holdings — H1 2024 Earnings Presentation on 6ix