Med Life Sa · BVB:M
Med Life Sa — Investor Presentation (December 2024)
54 slides from Med Life Sa's investor presentation, December 2024
Slide 1: MedLife Group
MedLife Group December 2024 www.medlife.ro www.medlife.ro
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 S.A.’s securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy Med Life S.A.’s securities. Neither this prese
Slide 3: MedLife at a glance
MedLife at a glance • Leading private healthcare provider in Romania and one of the largest players in CEE. • Balanced and highly synergic business model, with 6 mutually reinforcing business lines and 2 distinct brands (MedLife and Sfânta Maria) that capture revenue from patients from all disposabl
Slide 4: Agenda
1 • History • Shareholder Structure • Selected Acquisitions About • Romanian Healthcare System • • Corporate Governance 2023 at a Glance • Romania Macroeconomic Data Us • MedLife Medical System • 9mo 2024 Key Messages • Outlook • MedLife on BVB 2 • MedLife Network • Maternities & Stem Cells Bank Our
Slide 5: About Us
About Us • History • Selected Acquisitions • Romanian Healthcare System • Romania Macroeconomic Data • MedLife Medical System • MedLife on BVB • Shareholder Structure • Corporate Governance • 2023 at a Glance • 9mo 2024 Key Messages • Outlook 1
Slide 6: History
History MedLife plays a key role in society and SGAM, part of Transaction of the gains detached Intense expansion Further consolidation Group Soc. Gen. Launch of a new year in the private leadership in of presence and of MedLife’s presence st becomes business line: healthcare market: pandemic monito
Slide 7: Selected Acquisitions
Selected Acquisitions 2017 – 2020, the 1st healthcare provider listed on the local Stock Exchange 2010 – 2016, private healthcare provider ≈ Almina Trading - outpatient, imagistic and lab services in Ilfov county. ≈ Anima – one of the largest private outpatient services provider under ≈ PDR Group -
Slide 8: Selected Acquisitions
Selected Acquisitions 2021 – 2024, intense national expansion and consolidation of units and services ≈ NeoLife – one of the largest medical players in the Oncology ≈ Nord Group – outpatient units, lab and a and a new segment in Romania multidisciplinary hospital unit in Bucharest ≈ Life Med and Pro
Slide 9: Romanian Healthcare System
Romanian Healthcare System ≈ The Romanian health system is hospital-centric, with high bed capacity. Patients seeking timely care often bypass primary care facilities and go directly to hospitals. As a result, nearly half of all health financing goes towards inpatient care. Bypassing primary care is
Slide 10: Romanian Healthcare System
Romanian Healthcare System Health spending per capita in Romania remains the lowest among EU countries Source: OECD Health Statistics 2023 (data refer to 2021, except Malta (2020)). Note: The EU average is weighted. 10 1. About Us 2. Our Network 3. 9mo 2024 Financial Results 4. Financial Overview
Slide 11: Romanian Healthcare System
Romanian Healthcare System Romania spends less than the EU average in all areas Source: EC Romania Country Health Profile 2023 report, OECD Health Statistics 2023 (data refer to 2021). Notes: 1. Includes curative-rehabilitative care in hospital and other settings; 2. Includes only the outpatient mar
Slide 12: Romanian Healthcare System
Romanian Healthcare System Indicator 2018 2019 2020 2021e 2022f 2023f 2024f 2025f 2026f Healthcare Expenditure Trends, Historical Data & Forecasts Health spending, USDbn 13.426 13.565 15.573 17.104 18.056 19.514 21.550 23.653 25.558 Health spending, USDbn, % YoY 23.13 1.03 14.80 9.84 5.56 8.08 10.44
Slide 13: Top Private Healthcare Providers in Romania
Romanian Healthcare System Top 5 Private Healthcare Providers in Romania 2023 Revenues Company (RON mn)* MedLife 2,210 Regina Maria 1,900 Medicover 1,065 Sanador 707 Affidea 361 TOTAL 6,243 * Statista research: Leading private healthcare companies in Romania in 2023, by revenue and net profit. 13 1.
Slide 14: Romania Macroeconomic Data
Romania Macroeconomic Data Household consumption to become main GDP growth driver GDP (real, s.a., q/q) GDP (real, y.o.y) Contributions to real GDP growth, demand side Annual 2021 2022 2023 2024e 2025e GDP real 5.7% 4.1% 2.1% 2.6% 3.9% CPI (y.o.y) 5.1% 13.7% 10.5% 5.5% 3.7% Private consumption 7.5%
Slide 15: Romania Macroeconomic Data: Wage evolution
Romania Macroeconomic Data Wage evolution Real wage growth (12mo average, %) Real wage growth (Jan-2000=100) Average wage vs EU average Nominal wage growth in Romania ERSTE Group Research reports. 15 1. About Us 2. Our Network 3. 9mo 2024 Financial Results 4. Financial Overview
Slide 16: MedLife Medical System
MedLife Medical System Founded in 1996, MedLife is the leading private healthcare provider in Romania*, assisting over time more than 6 million unique patients. It operates the widest network of clinics and mono and multidisciplinary hospitals at national level, one of the largest networks of medica
Slide 17: Unique Revenue Capture Model
MedLife Medical System: Unique Revenue Capture Model Flow of Referrals Among Business Lines Hospitals Hyperclinics Maternities Clinics MedLife Dentistry ecosystem over Laboratories Stem Cells Bank 6 million Pharmacies unique patients 17 1. About Us 2. Our Network 3. 9mo 2024 Financial Results 4. Fin
Slide 18: MedLife on BVB
MedLife on BVB 600 525 450 375 300 225 150 75 0 1/19 4/19 7/19 11/19 2/20 5/20 9/20 12/20 3/21 7/21 10/21 1/22 5/22 8/22 12/22 3/23 6/23 10/23 1/24 4/24 8/24 11/24 M BET Trading Volume AVDT Value AVDT Price Var. Index inclusion Analyst coverage performance (mn) (k) (RON mn) (RON mn) 6 months 7.69% 2
Slide 19: Shareholder structure as at September 2024
Shareholder structure as at 30 September 2024 Individuals 5.67% Cristescu Mihaela Gabriela, 14.04% NN Pensions Pilar 2, 13.24% * Source: Romanian Central Depositary. **Source: Detailed Statement of Investments published by each pension fund. 19 1. About Us 2. Our Network 3. 9mo 2024 Financial Result
Slide 20: Corporate Governance
Corporate Governance Executive Team Mihai Marcu CEO Nicolae Marcu Dorin Preda Alina Irinoiu Chief Healthcare Deputy CEO CFO & COO Board of Directors Dimitrie Pelinescu- Ana Maria Mihai Marcu Nicolae Marcu Dorin Preda Voicu Cheta Ovidiu Fer Onciul Mihaeascu ≈Independent ≈Independent Member Member ≈Me
Slide 21: 2023 Overview
2023 Overview Good dynamics and sustained investments for the benefit of patients ≈ Focus mainly on the consolidation and coagulation of the new companies under the MedLife umbrella. ≈ Investments in medical oncology, top equipment, and the equipping of 3 hospitals with state-of-the-art surgical rob
Slide 22: 9mo 2024 Key messages
9mo 2024 Key messages Steady growth in the financial and operational performance that demonstrates the positive effects of integrating companies into the Group and the returns on recent investments, which are beginning to show their effectiveness. Consolidated pro-forma Turnover of RON 2 billion, up
Slide 23: Outlook
Outlook Strategic priorities: ≈ the opening of Medici’s Hospital in Timisoara and MedLife Hospital in Craiova, both set to be operational by the end of the year; ≈ continued development of the MedLife Park project. Focus on: ≈ optimizing the Group's operational workflows and procedures to capitalize
Slide 24: Our Network
Our Network • MedLife Network • Hyperclinics & Clinics • Dentistry Centers • Hospitals • Maternities & Stem Cells Bank • Laboratories • Pharmacies 2
Slide 25: MedLife Network
MedLife Network Legend: Romania Hospitals Maternities Hyperclinics Hungary Pharmacies Dentistry Centers Laboratories Clinics No. 1 in Romania CEE expansion 25 1. About Us 2. Our Network 3. 9mo 2024 Financial Results 4. Financial Overview
Slide 26: Hyperclinics & Clinics
Hyperclinics & Clinics Hyperclinics Hyperclinics & Clinics ≈ One stop shop concept pioneered by the Group in Romania: includes medical Dentistry outpatient specialties, providing in one single Centers place, clinical examinations and imaging. ≈ Designed for larger urban areas, with a x2 x2 populatio
Slide 27: Dentistry Centers
Dentistry Centers Hyperclinics DENT ESTET by MedLife, the only dental & Clinics network in Romania specialized in orthodontic services by age segment: Dentistry ≈ 17 medical units with 3 acquisitions Centers completed: Krondent in Brasov, Stomestet in Cluj and Oradent in Oradea. ≈ Highly specialized
Slide 28: Hospitals
Hospitals Largest network of private hospitals in Romania, with over 1.400 beds, and a wide range of medical and surgical specialties. Hyperclinics Multidisciplinary Inpatient units & Clinics ≈ MedLife Genesys Hospital in Arad ≈ MedLife PDR Hospital in Brasov ≈ Lotus Hospital in Ploiesti Dentistry C
Slide 29: Maternities & Stem Cells Bank
Maternities & Stem Cells Bank Hyperclinics & Clinics ≈ MedLife Grivita Maternity is the 1st Dentistry private maternity hospital in Bucharest Centers accredited by UNICEF as Baby-Friendly Hospital. Hospitals ≈ Maternities have birth blocks consisting of natural delivery rooms and cesarean delivery r
Slide 30: Laboratories
Laboratories Hyperclinics & Clinics ≈ One of the largest network of private laboratories in Romania. ≈ The laboratories are using the latest Abbott Dentistry Centers technologies. ≈ Full range of tests performed from standard 2 2 blood tests to complex genetic analysis. Hospitals ≈ Partnership with
Slide 31: Pharmacies
Pharmacies Hyperclinics & Clinics ≈ Own laboratory, where clients can Dentistry Centers benefit from specific products. ≈ NHIH contracts for free and Hospitals subsidized prescriptions. ≈ PharmaLife own laboratory & own brand of products: DoctorLife. Maternities ≈ Pharmaceutical distribution: leadin
Slide 32: 9mo 2024 Financial Results
9mo 2024 Financial Results • Consolidated P&L • Pro-forma Figures • QoQ Evolution • Operational KPIs • OPEX Evolution • Consolidated Financial Position • Debt Position • Consolidated Cash Flow 32
Slide 33: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss 9M 2023 9M 2024 Pro-forma 9m 2024 % var. % var. Consolidated pro-forma IFRS IFRS adjusted Pro-forma Gross sales 1,627,415,774 1,978,668,707 21.6 % 44,946,344 2,023,615,051 24.3 % Turnover of RON 2bn, up by Net sales (less NHP) 1,627,415,774 1,978,668,707 21.
Slide 34: Pro-forma Figures
Pro-forma Figures Pro-forma Revenues Pro-forma EBITDA 1,978,668,707 1,885,121,591 304,087,082 289,936,464 44,946,344 -138,493,460 6,901,323 7,249,296 9m 2024 Acquisitions National Program 9m 2024 9m 2024 Acquisitions One-off expenses 9m 2024 IFRS Reclass Pro-forma IFRS Pro-forma From IFRS Revenues t
Slide 35: QoQ Evolution
QoQ Evolution 120 EBITDA evolution 98.1 19.0% 95.1 96.7 100 17.2% 17.0% 72.2 74.7 75.8 80 67.2 71.2 15.2% 63.5 62.4 14.5% EBITDA 14.1% 14.3% 15.0% (RON m) 60 13.5% 48.6 13.5% 14.4% 12.5% 12.2% 13.0% EBITDA 40 margin (%) 20 10.3% 11.0% 0 9.0% Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1
Slide 36: Operational KPIs
Operational KPIs 9m 2023 9m 2024 % Total Business line Category % var. IFRS IFRS IFRS Sales Revenue 608,211,330 741,702,586 21.9% 37.5% Revenue saw a robust 22% increase, with 17% Clinics Visits 2,837,293 3,181,076 12.1% driven by organic growth. All business lines Average fee 214.4 233.2 8.8% conti
Slide 37: OPEX Evolution
OPEX Evolution % OPEX % Sales 9m 2023 9m 2024 9m ‘23 9m ‘24 9m ‘23 9m ‘24 % var. % var. % var. IFRS IFRS IFRS IFRS IFRS IFRS Consumable materials and repair materials 286,957,439 358,380,674 24.9% 18.4% 19.1% 0.8 p.p 17.6% 18.1% 0.5 p.p Commodities 155,327,826 166,982,925 7.5% 9.9% 8.9% -1 p.p 9.5%
Slide 38: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position December 31, 2023 September 30, 2024 % var. IFRS IFRS Non-current assets 2,102,828,820 2,275,513,231 8.2% Current assets, excluding Cash and cash equivalents 433,237,518 519,653,862 19.9% Cash and cash equivalents 100,271,093 154,826,369 54.4% TOTAL ASSET
Slide 39: Debt Position
Debt Position December 31, 2023 September 30, 2024 % var. IFRS IFRS Leasing liabilities Current portion – Leasing 99,589,187 108,985,823 9.4% Long term portion - leasing 309,158,946 300,504,069 -2.8% Net debt / Pro-forma EBITDA ratio TOTAL 408,748,133 409,489,892 0.2% decreased from 4.6x to 4.02x, F
Slide 40: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow September 30, 2023 September 30, 2024 IFRS IFRS Net income before taxes 15,168,996 37,878,444 Adjustments for non-monetary items 197,978,433 255,606,909 Operating cash flow before working capital and other monetary changes 213,147,428 293,485,353 Cash used in work
Slide 41: Financial Overview
Financial Overview • Sales evolution • Business lines evolution • EBITDA evolution • Consolidated P&L • OPEX evolution • Consolidated Financial Position • Debt position • Consolidated Cash Flow • 2024 FY Budget • Annexes 3
Slide 42: Sales evolution
Sales evolution % Total Business line Category 2023 2022 % var. 2023 Sales Total Sales evolution YoY (RON mn) Revenue 831,236,066 616,685,378 34.8% 37.6% Clinics Visits 3,834,062 3,205,637 19.6% Average fee 216.8 192.4 12.7% Revenue 121,778,348 119,068,495 2.3% 5.5% Dentistry Visits 185,829 176,437
Slide 43: Business lines evolution: Sales and Traffic
Business lines evolution: Sales and Traffic Clinics Laboratories Dentistry Centers 900 3,834 4,500 8.5 186 300 9.0 140 176 200 800 4,000 7.4 154 3,206 8.0 120 180 700 3,500 250 6.3 7.0 160 600 3,000 100 5.0 140 2,280 200 6.0 500 2,500 89 120 1,815 80 5.0 400 831 2,000 150 100 258 4.0 60 119 122 617
Slide 44: EBITDA evolution
EBITDA evolution EBITDA evolution YoY (RON mn) Revenues & EBITDA (RON mn) 2,000 15.0% 1,500 13.7% 317 2,210 2,108 286 289 1,000 1,795 13.1% 247 212 500 247 289 317 0 2020 2021 2022 2023 2023 2022 2023 2023 Pro-forma Pro-forma Revenues EBITDA EBITDA margin EBITDA evolution QoQ 100.0 90.0 19.0% 80.0 1
Slide 45: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss 2022 2023 Pro-forma 2023 % var. % var. IFRS IFRS adjusted Pro-forma Gross sales 1,795,432,748 2,210,435,349 23.1% 32,323,239 2,242,758,588 24.9% Net sales (less NHP) 1,795,432,748 2,210,435,349 23.1% (102,685,673) 2,107,749,676 17.4% Other operating income 1
Slide 46: OPEX Evolution
OPEX Evolution % OPEX % Sales 2022 2023 2022 2023 2022 2023 % var. Change % var. IFRS IFRS IFRS IFRS IFRS IFRS Consumable materials and repair materials 311,233,127 389,887,326 25.3% 18.1% 18.3% 0.2 17.3% 17.6% 0.3 Commodities 209,975,320 208,134,799 (0.9)% 12.2% 9.8% (2.5) 11.7% 9.4% (2.3) Utilitie
Slide 47: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 December 2022 31 December 2023 % var. IFRS IFRS Non-current assets 1,686,590,024 2,102,828,820 24.7% Current assets, excluding Cash and cash equivalents 376,318,151 433,237,518 15.1% Cash and cash equivalents 89,068,154 100,271,093 12.6% TOTAL ASSETS 2
Slide 48: Debt Position
Debt Position 31 December 2022 31 December 2023 Leasing liabilities % var. IFRS IFRS Current portion - leasing 77,141,698 99,589,187 29.1% Long-term portion - leasing 225,175,340 309,158,946 37.3% TOTAL 302,317,038 408,748,133 35.2% 31 December 2022 31 December 2023 Financial debt % var. IFRS IFRS O
Slide 49: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow 31 December 2022 31 December 2023 IFRS IFRS Net income before taxes 49,557,301 4,299,484 Adjustments for non-monetary items 195,945,435 288,138,632 Operating cash flow before working capital and other monetary changes 245,502,736 292,438,116 Cash used in working c
Slide 50: 2024 FY Consolidated Budget
2024 FY Consolidated Budget Financial Year 2023 2024 Variance IFRS, audited Budget Revenue from contracts with customers 2,210,435,349 2,618,601,286 18.5% Other operating revenues 11,300,635 - - OPERATING INCOME 2,221,735,984 2,618,601,286 17.9% OPERATING EXPENSES 1,932,827,705 2,245,934,941 16.2% (
Slide 51: Annexes: Consolidated Statement of Financial Position
ASSETS 31 December 2023 31 December 2022 % var. Non-current Assets Annexes Goodwill 445,395,617 368,672,606 20.8% Intangible assets 118,906,011 100,192,265 18.7% Property, plant and equipment 1,101,015,115 828,501,060 32.9% Right-of-use asset 396,569,537 306,413,389 29.4% Other financial assets 40,9
Slide 52: Annexes: Consolidated Statement of Comprehensive Income
Annexes Revenue from contracts with customers 31 December 2023 2,210,435,349 31 December 2022 1,795,432,748 % var. 23.1% Other operating income 11,300,635 14,118,061 (20.0)% Operating Income 2,221,735,984 1,809,550,809 22.8% Consumable materials and repair materials (389,887,326) (311,233,127) 25.3%
Slide 53: Annexes: Consolidated Statement of Cash Flows
Annexes Profit before tax 31 December 2023 4,299,484 31 December 2022 49,557,301 Adjustments for Depreciation, amortization and impairment of fixed assets 197,390,915 152,410,751 Consolidated Provisions for liabilities and charges 838,338 625,545 Statement of Cash Interest revenue (3,423,077) (1,261
Slide 54: Thank you!
MedLife Group 365, Calea Grivitei, Bucharest investors@medlife.ro Thank you!
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