Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — FY2016 Earnings Presentation
35 slides from Cleopatra Hospital's earnings presentation, 2017
Slide 1: Cleopatra Hospital Company Investor Presentation FY16
Cleopatra Hospital Company Investor Presentation FY16
Slide 2: At a Glance
At a Glance 4 +20 Operational hospitals Years of subsidiary track record across our platform • Cleopatra Hospital Company (the “Group” or “CHC”), is the largest private 635 1,600 hospital group in Egypt and consists of four operational hospitals all in Cairo, namely: I. Cleopatra Hospital (“Cleopatr
Slide 3: Presence in Attractive Catchment Areas Across Greater Cairo
Presence in Attractive Catchment Areas Across Greater Cairo Location Mohandesin, Giza Location Heliopolis, Cairo Built-up Area 5,270 sqm Built-up Area 7,380 sqm Date Established 1996 Date Established 1984 # of Beds 120 # of Beds(2) 167 Location Maadi, Cairo Location Heliopolis, Cairo Built-up Area 1
Slide 4: Our Value Proposition
Our Value Proposition
Slide 5: Key Investment Highlights
Key Investment Highlights 1 2 3 4 5 6 Resilient and Leading position Capitalizing on Leverage on Solid financial Seasoned underpenetrated in a market with established integrated performance management market with high barriers to brand equity & platform and with potential team with structural entry
Slide 6: Resilient & Underpenetrated Market with Demand Growth
Healthcare Expenditure (EGP bn) Resilient & Underpenetrated 194 Public Private 178 163 Market with Demand Growth 149 137 131 113 117 96 98 107 83 90 81 83 70 53 60 55 59 65 71 77 30 36 43 50 Operating in an underpenetrated and growing market 2012 2013 2014 2015 2016f 2017f 2018f 2019f 2020f Hospital
Slide 7: Prevalence of Diseases in Egypt
Prevalence of Diseases in Egypt Lifestyle Diseases Cancer Prevalence (2012) (‘000 cases) Estimated Incidence Prevalence (1-year) Prevalence (3-years) 931 Hepatitis C Prevalence (2012) (‘000 cases) 6,023 492 358 208 3,403 146 145 105 83 59 54 34 26 21 17 17 14 12 10 9 9 7 6 6 6 4 3 2 1,473 1,215 254
Slide 8: Leading Position in a Market with High Barriers to Entry
Leading Position in a Market with High Barriers to Entry Largest institutional hospital group in Egypt by number of …Capturing the largest share of the top 10 large private …And by number of hospitals(1) … beds(1)… hospitals in Cairo 4 635 3(4) 41% 200(2) 300 (3) 4 out of top 10 145(2) 241(4) 1(2) 1
Slide 9: Capitalizing on Established Brand Equity & Subsidiary Track Record
Capitalizing on Established Brand Equity & Subsidiary Track Record Individual Subsidiary Track Record Est. 1976 Est. 1984 Est. 1996 Est. 1985 • Reputable brand in East Cairo area • Reputable brand in East Cairo area • Reputable brand in West Cairo area • Reputable brand in West Cairo area • 40 years
Slide 10: Leverage on Integrated Platform and Scale to Extract Synergies
Leverage on Integrated Platform and Scale to Extract Synergies • Centralized functions including quality control, IT, Institutionalized HR, finance, legal, business development and Group Management supply chain • Shared cost benefits • Bottom-up business planning • Standardized and improved quality
Slide 11: Solid Financial Performance
Solid Financial Group Revenue Contribution by Hospital (FY2016 ) Performance* 17% 18% 44% Group Revenues (EGP mn) 864 747 16% 103 16% 638 543 139 17% 156 118 128 21% 99 107 186 87 123 149 114 290 332 380 Cleopatra CSH NBH Al Shorouk 243 2013 2014 2015 2016 Group Gross Profit (EGP mn, Group % margin)
Slide 12: Key Revenue Drivers
Key Revenue Drivers Number of Inpatients Outpatient Visits 7% 48,825 10% 46,613 46,886 607,215 45,794 554,764 472,319 419,222 2013 2014 2015 2016 2013 2014 2015 2016 Number of ER Patients Number of Surgeries 0.1% 253,523 254,107 254,288 4% 36,495 35,082 230,283 33,925 32,535 2013 2014 2015 2016 2013
Slide 13: Led by a Seasoned Management Team with Clear Organizational Structure
Led by a Seasoned Management Team with Clear Organizational Structure Board of Directors Audit Committee Ola Ahmed Dr. Ahmed Ezz El Din – Chief Executive Officer Internal Audit Manager Dr. Mohamed Ibrahim Dr. Moharram El Badawy Dr. Khaled El Noury Prof. Hassan Shaker MD Cleopatra Hospital MD El Shor
Slide 14: Our Forward Looking Strategy
Our Forward Looking Strategy
Slide 15: Clearly Defined Growth Strategy
Clearly Defined Growth Strategy Our growth strategy is based on six key pillars: Integrating the Enhancing Expanding Strengthening Leveraging Establish platform to utilization and hospital unified brand stronger centers of achieve higher optimizing capacities and position with excellence and efficie
Slide 16: Integrating the Platform to Achieve Higher Efficiencies
Integrating the platform to Achieve Higher Efficiencies Institutionalizing Attracting Upgrading Centralized Comprehensive Group Insurance & Equipment and Procurement Service Platform Management Corporate Clients Facilities Cleopatra Investor Presentation FY16 16
Slide 17: Enhancing Utilization and Optimizing Existing Capacity
Enhancing Utilization and Optimizing Existing Capacity 2017 CAPEX Plan (EGP mn) Optimization of Existing Space and Services Medical Civil IT PolyClinic 140 • Enhancing efficiency of underperforming assets 14 through proper management and targeted 21 investments, with Cleopatra itself showing potenti
Slide 18: Expand Hospital Capacities
Expand Hospital Capacities Overview • 336.5 m2 plot of land adjacent to Al Shorouk Al Shorouk Extension • Multi-specialty general hospital adjacent to Al Shorouk, with a focus in ICU • The unit will hold c.40 beds (out if which 13 ICU), 3 surgical rooms, Linear Accelerator, and 2 outpatient clinics
Slide 19: Expanding the Group's Feeder Network
Expanding the Group’s Feeder Network Expand patient access through ambulatory outpatient center offering Market opportunity Ambulatory Clinics are a relatively underdeveloped but high-margin offering in Egypt, with significant expansion avenues Objective This acts as the hub hospital(s), to These po
Slide 20: Strengthening Unified Brand
Strengthening Unified Brand Creating an Umbrella Brand Synonymous with Quality Patient Care Phase I – Corporate Positioning Phase II – Promoting Umbrella Brand Target – Unified Group Brand Identity Upgrade equipment / standardize quality of Creating the Group’s brand identity all services across
Slide 21: Leveraging Stronger Position with Insurance and Contract Clients
Leveraging Stronger Position with Insurance and Contract Clients MetLife Insurance Pricing Classification MetLife Gold Card MetLife Silver Card MetLife Green Card MetLife Orange Card • Hospitals included • 2nd tier hospitals • 3rd tier hospitals • Cheapest insurance solely in this group are included
Slide 22: Establish Centers of Excellence (CoEs) to drive higher margins
Establish Centers of Excellence (CoEs) to drive higher margins • The Group is laying the groundwork to expand its Centers of Excellence (CoEs) network, focusing on the provision of tertiary services based on each asset’s unique strengths • COEs will enable the Group to minimize capex since there wil
Slide 23: Achieve Joint Commission International (JCI) Accreditation
Achieve Joint Commission International (JCI) Accreditation The quality council is in charge of creating a unified quality policies and procedures structure, tailored to match each hospital’s characteristics; reviewing policies and procedures’ implementation and preparing Key Initiatives benchmark au
Slide 24: Governance & Shareholder Information
Governance & Shareholder Information
Slide 25: CHC is Backed by an Experienced Board of Directors
CHC is Back by an Experienced Board of Directors Well Structured BoD(1) Healthcare Experts Financial and Investment Experts Dr. Mohamed Awad Sameh Mohsen General Omar Dr. Tarek Zahed Dr. Ahmed Ezzeldin Nabil Kamhawy Walid Bakr Tag El Din Founder / Previous Ahmed Badreldin Kinawy Non-Executive Execut
Slide 26: Key Investor Information
Key Investor Care Health Limited’s Key Shareholders Information The Abraaj Group is a leading investor operating in the growth markets of Asia, Africa, Latin America and the Middle East, currently manages c. US$ 9.5 billion across 20 sector and country-specific funds DEG, the German Investment and D
Slide 27: Appendix I: Financial Statements & Management Commentary
Appendix I: Financial Statements & Management Commentary
Slide 28: Consolidated Income Statement
Consolidated Income Statement Year – on - Year Quarter – on - Quarter All figures in EGP mn 4Q15 4Q16 change FY15 FY16 change All figures in EGP mn 1Q16 2Q16 change 3Q16 4Q16 change Revenues 173.1 237.9 37% 411.5 864.4 110% Revenues 209.8 201.7 -4% 215.1 237.9 11% Cost of sales (122.5) (174.6) 42% (
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP mn 31 December 2015 31 December 2016 All figures in EGP mn 31 December 2015 31 December 2016 Non-current liabilities Non-current assets Long term debt 162.4 326.0 Fixed assets 267.0 396.7 Other liabilities - due to related parties 47.4 - Intangible asset
Slide 30: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement All figures in EGP mn 31 December 2015 31 December 2016 All figures in EGP mn 31 December 2015 31 December 2016 Cont’d Cash flow from operating activities: Cash flow from investment activities: Profit before tax 96.0 119.9 Proceeds from sale of fixed assets - - Adjus
Slide 31: Appendix II: Management Bios
Appendix II: Management Bios
Slide 32: Management Biographies - 1/3
Management Biographies - 1/3 1. Dr. Ahmed Ezz El-Din, Group Chief Executive Officer Dr. Ahmed Ezz El-Din brings over 35 years of healthcare experience to the group and a deep insight into healthcare businesses in Egypt. Prior to assuming his role as the Group’s CEO, Dr. Ezz El-Din was the Director o
Slide 33: Management Biographies - 2/3
Management Biographies - 2/3 6. Prof. Hassan Shaker, Cairo Specialized Hospital (CSH) Managing Director Professor of Surgery at Ain Shams University’s Faculty of Medicine, Dr. Hassan Shaker adds valuable hospital management experience to the Group. Prior to his position as Managing Director of Cairo
Slide 34: Management Biographies - 3/3
Management Biographies - 3/3 11. Dr. Sherif Abd El-Fattah, Supply Chain Director Dr. Sherif Abd El-Fattah has over 20 years of hands-on experience in supply chain management and operations management in the medical field, having previously held positions including Supply Chain Director, Deputy Gener
Slide 35: Thank you
Thank you INVESTOR RELATIONS DIRECTOR SHAREHOLDER INFORMATION Hoda Yehia Telephone: +202 26 EGX: CLHO.CA E-mail: hoda.yehia@cleohc.com Listed: June 2016 investors.cleopatrahospitals.com Shares Outstanding: 200 million
Cleopatra Hospital Company — FY2016 Earnings Presentation on 6ix