Med Life SA · BVB:M
Med Life SA — FY2019 Earnings Presentation
40 slides from Med Life SA's earnings presentation, Feb 27, 2020
Slide 1: YE 2019 Preliminary Financial Results
YE 2019 Preliminary Financial Results Investors and Analysts presentation 26-27 February, 2020 London
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: MedLife at a glance
MedLife at a glance 1. Supportive market environment: expected - highest growth of healthcare market in CEE with a CAGR for private healthcare of 9.6% over 2018 – 2023 2. Leading private healthcare provider in Romania 3. One of the largest players in CEE 4. Balanced and highly synergic business mode
Slide 4: Agenda
• MedLife Medical System About us 1 • How we grew • MedLife network • Market overview AGENDA • Main events 2019 Highlights 2019 2 • Key financial data • Consolidated Statement of Financial Position Financial overview • Consolidated Statement of Profit and Loss 3 • • • Consolidated Statement of Cash
Slide 5: Unique Revenue Capture Model - Flow of Referrals Among Business Lines
Unique Revenue Capture Model - Flow of Referrals Among Business Lines Hospitals Hyperclinics Maternities Clinics MedLife Stomatology Medical System Laboratories Stem Cells Bank Pharmacies 5 million 5/ unique patients 1. About us 2. Highlights 2019 3. Financial overview
Slide 6: How we grew
How we grew evolution IFC becomes a MedLife shareholder; together MedLife expands in set the grounds for the The first acquisition of a Hungary, acquiring First MedLife first network of private local healthcare provider MedLife shares are Rózsakert Medical clinic is founded hospitals in Romania was
Slide 7: MedLife network in Romania and CEE expansion
No. 1 in Romania – CEE expansion Legend: Hospitals Maternities Hyperclinics Hungary Pharmacies Stomatology Centers Excellence Centers Laboratories Romania Clinics 7/ 1. About us 2. Highlights 2019 3. Financial overview
Slide 8: 5 million unique patients and network units
5 million unique patients 200 36 expertise Laboratories Sampling points 5 million unique patients used MedLife services 22 Hyperclinics 10 Hospitals More than 700,000 employees benefiting from MedLife 12 Stomatology 130 NetLife units healthcare prevention packages centers 56 4 Clinics Maternities 10
Slide 9: Our mission, vision, values that guide our activity
Corporate social Innovation. responsibility. We have a constant focus on Our mission, vision, Everything we do is guided by what is important to people`s lives methods, technology and solutions that will result in better and more efficient medical values that guide our and health. solutions. activit
Slide 10: MedLife Hyperclinics
MedLife Hyperclinics One stop shop concept - MedLife hyperclinics include medical outpatient specialties, providing in one single place clinical MedLife examinations and imaging. Hyperclinics Stomatology Centers High performance imaging MedLife Excellence investigations: radiology, DEXA (bone Center
Slide 11: Stomatology centers
Stomatology centers PRFG technology It allows rapid healing after dental interventions with high degree of complexity, in just a few minutes. MedLife Hyperclinics Stomatology Centers DENT ESTET by MedLife, the only dental network in Romania specialized in orthodontic services by age segments MedLife
Slide 12: MedLife Excellence Centers
MedLife Excellence Centers Medical teams dedicated to various specialties, such as neurosurgery, cardiology, gastroenterology, gynecology, etc. MedLife Brain Team: Neurosurgery MindCare: Psychiatry and Hyperclinics Excellence Center Psychotherapy Excellence Center DermaLife: Dermatology and Aestheti
Slide 13: MedLife Hospitals
MedLife Hospitals The largest network of private hospitals in Romania, with 900 beds MedLife Multidisciplinary Hyperclinics MedLife Genesys Hospital, Arad Life Memorial Hospital, Bucharest Stomatology MedLife Titan Hospital, Bucharest (day inpatient, LMH external Centers unit) MedLife PDR Hospital,
Slide 14: MedLife Maternities
MedLife Maternities MedLife Grivita Maternity is the first private maternity hospital in Bucharest accredited by UNICEF as Baby-Friendly Hospital. MedLife Hyperclinics Polisano Maternity, Sibiu MedLife Genesys Maternity, Arad Stomatology Centers Maternities have birth blocks consisting of natural de
Slide 15: MedLife Stem Cells Bank
MedLife Stem Cells Bank High performance biotechnology laboratory in Romania, for the isolation and storage of MedLife stem cells Hyperclinics Stomatology Centers Stem cells processing and isolation is completely automated, the laboratory risk of MedLife Excellence contamination being removed Center
Slide 16: MedLife Laboratories
MedLife Laboratories The latest laboratory technologies by Abbott. MedLife Hyperclinics Stomatology Centers The largest network of private laboratories in Romania – 36 units in Bucharest and nationwide MedLife Excellence Full range of tests performed from Centers standard blood tests to complex gene
Slide 17: MedLife Pharmacies: PharmaLife
MedLife Pharmacies: PharmaLife Own laboratory, where clients can benefit from specific products. MedLife Hyperclinics Stomatology Centers NHIH contracts for free and subsidized prescriptions MedLife Excellence Centers Clickpharm.ro website for online shopping MedLife Hospitals PharmaLife own laborat
Slide 18: Market overview / favorable macroeconomic environment
Market overview / favorable macroeconomic environment The Romanian economy expanded by 4.1% in 2019 as compared to 2018 (4.1% YoY in 2018, 6.9% in 2017 and 4.8% in 2016) as compared to EU which expanded by 1.5% YoY in 2019. According to European Commission forecasts, Romanian GDP is expected to stab
Slide 19: Market overview contd.
Market overview contd. CHANGE OF GDP PER INHABITANT IN PURCHASING POWER STANDARDS (PPS) IN RELATION TO THE EU- 28 AVERAGE, 2007-2016 Romania es has increased with 5-<10 and more than 10 percentage points in certain regions of the country in relation to the EU-28 average between 2007-2016 19 / 1. Abo
Slide 20: Market overview contd.
Market overview contd. In terms of health care expenditure as a percentage of GDP, the highest figure recorded in 2016 was in France (11.5 %), followed by Germany (11.1 %) and Sweden (10.9 %). The three EU countries with the lowest shares of GDP were Romania (5.0 %), Luxembourg and Latvia (both 6.2
Slide 21: Top private healthcare providers in Romania
Market overview contd. Top private healthcare providers in Romania * Figures not available at the date of this presentation 21 / 1. About us 2. Highlights 2019 3. Financial overview
Slide 22: Highlights 2019
Highlights 2019 • Main events 2019 • Key financial data 1 22 /
Slide 23: Main events 2019
Main events 2019 Acquisition of RMC Group, Hungary (51% shareholding package; finalized in March 2019) Acquisition of Badea Medica Excellence Center, Cluj (65% shareholding package; finalized in May 2019) Increase from 55% to 90% shareholding package in Sama Group, Craiova Increase from 80% to 83% s
Slide 24: Main events 2019 contd.
Main events 2019 contd. Development of the largest private medical project in Romania: MedLife Medical Park (2 stages of development: 1st Stage involves the development of a new hyperclinic, state-of-the-art imaging and radiotherapy center, R&D center, extension of MedLife Memorial Hospital and IVF
Slide 25: Key financial data
Key financial data Historic strong revenue growth of approx. 25% Y-on-Y for the past 3 years In 2019 Pro-forma Sales increased by 24.5%, to 989.5m RON, organic growth of 14.9% Pro-forma EBITDA increased by 74.7% to 166.6mRON, a margin expansion of 4.8pp to 16.8% (from 12.0%) (fig.1) or – before IFRS
Slide 26: Key financial data contd.
Key financial data contd. Sales and EBITDA margin development (fig.3) 1,000,000,000 989,475,024 989,475,024 18.0% 900,000,000 794,562,861 17.0% 16.8% 800,000,000 16.0% 700,000,000 623,219,949 600,000,000 15.0% 502,986,790 500,000,000 14.0% 400,000,000 13.1% 13.0% 300,000,000 12.5% 12.0% 12.0% 200,00
Slide 27: Key financial data contd.
Key financial data contd. Split of Pro-forma EBITDA before IFRS 16: 90.8% Group Owners and 9.2% NCI Pro-forma Net Result increased by 84.6% to 30.9mRON (from 16.7m RON), while Pro-forma Total Comprehensive Income (TCI) by 87.9% to 31.5m RON (from 16.7m RON) or – before IFRS 16 - by 98.3% to 33.2m RO
Slide 28: Financial overview
Financial overview Consolidated Statement of Financial Position Consolidated Stetement of Profit and Loss Consolidated Stetement of Cash Flow OPEX Evolution Operational KPIs Sales structure 2 28 /
Slide 29: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 29 / 1.About us 2. Highlights 2019 3. Financial overview
Slide 30: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss 30 / 1.About us 2. Highlights 2019 3. Financial overview
Slide 31: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow 31 / 1.About us 2. Highlights 2019 3. Financial overview
Slide 32: OPEX Evolution
OPEX Evolution Note: The Group recorded a 1.4 p.p. decrease of Operating Expenses as % of Sales in FY 2019 as compared to FY 2018: A. 4.4 p.p. decrease of “Rent” as % of Sales, generated by first time adoption of IFRS 16; B. 0.7 p.p. increase of “Third parties and salaries expenses" as % of Sales as
Slide 33: Operational KPIs
Operational KPIs 33 / 1.About us 2. Highlights 2019 3. Financial overview
Slide 34: Sales structure
Sales structure 34 / 1.About us 2. Highlights 2019 3. Financial overview
Slide 35: Annexes
Annexes 3 35 /
Slide 36: Annexes
36) Annexes ASSETS Non-current assets Goodwill Intangible assets Tangible assets Right-of-use asset Other financial assets TOTAL NON-CURRENT ASSETS Current Assets Inventories Receivables Other receivables Cash and cash equivalents Assets classified as held for sale Prepayments TOTAL CURRENT ASSETS T
Slide 37: Annexes
37) Annexes Sales Other operating revenues Operating Income Operating expenses Operating Profit Finance cost Other financial (expenses)/gains Financial result Result Before Taxes Income tax expense Net Result ‘Owners of the Group Non-controlling interests Other comprehensive income items that will n
Slide 38: Annexes
38/ Annexes Net income before taxes Adjustments for Depreciation Disposal of subsidiaries Provisions for liabilities and charges Interest revenue Interest expense Dividends Allowance for doubtful debts and receivables written-off Written off and allowance of other current assets Financial Discounts
Slide 39: Annexes
Annexes General paidand regscred Treasury —sShare resesseete Revaluation Accumulatea Zutle fo ont eauty registered after year shares premium other Reserve" Results ‘parent end reserves Foe et anuary’ 5,023,000 513,274 (6,056,105) 75,959,199 11,644,268 82,264,841 (9,994,660) 159,350,814 19,522, Recog
Slide 40: Annexes
401 Annexes Consolidated Pro Forma PL 12 Months ended December 31, 2019 Consolidated Consolidated SL Normalisation One off consolidated ‘SALES: (967,380,197 22,094,827 - 989,475,024 Other operating revenues 7,616,873 2,123,544 - 9,740,417 OPERATING INCOME 974,997,070 24,218,371 = 999,215,441 OPERATI