Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — Q1 2024 Earnings Presentation
33 slides from Cleopatra Hospital's earnings presentation, 2024
Slide 1: Transforming Healthcare in Egypt
Transforming Healthcare in Egypt Investor Presentation 1Q 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating
Slide 3: Contents
CONTENTS 1 Cleopatra Hospitals Group Highlights 2 Macro Environment 3 Competitive Advantages 4 Growth Strategy & New Business 5 Governance & Management Information 6 Q1 2024 in Review 7 Appendix
Slide 4: Cleopatra Hospitals Group Highlights
Cleopatra Hospitals Group Highlights 4
Slide 5: Our Mission, Vision and Values
Our Mission, Vision and Values ➢ A Patient-First Approach to Healthcare Our Mission • Delivering Leading Quality Services • Ensuring Safety of all Stakeholders • Growing Beds Supply & Expanding their Distribution • Improving Quality of Lives Everyday ➢ Sustainable Growth & Cross-Asset Collaboration
Slide 6: Q1 2024 Key Financial Highlights
Q1 2024 Key Financial Highlights The Group steepened its growth Q1 2024 Snapshot trajectory from FY23, recording record-high 1Q24 consolidated revenues of EGP 1,181 mn, up 52% versus 1Q23. This growth was driven by the expansion in EGP 1,181 mn EGP 436 mn CHG’s core business as its Consolidated reve
Slide 7: CHG enjoys a Broad Network spread Across Greater Cairo
CHG enjoys a Broad Network spread Across Greater Cairo, penetrating underserved regions Leveraging a growing footprint, CHG continues to penetrate new segments of the population and provide high quality care to underserved regions across Greater Cairo Leveraging a growing footprint, CHG continues to
Slide 8: The Group is a Fast Growing, Diversified Healthcare Services Provider
The Group is a Fast Growing, Diversified Healthcare Services Provider Group Revenue, Net Profit and Margins | EGP mn Revenue CAGR: 19% 3,595 1,181 2,549 2,614 27.9% 1,990 27.1% 29.9% 27.1% 26.5% 27.5% 29.9% 1,798 777 763 954 354 709 502 540 213 2019 2020 2021 2022 2023 1Q23 1Q24 Revenue Adjusted E
Slide 9: Macro Environment
Macro Environment 9
Slide 10: Large, Attractive, and Resilient Growth Market
Large, Attractive, and Resilient Growth Market Egypt’s health spending has increased at a greater pace over the past Beds, Doctors, & Nurses Ratios per 1,000 population regionally decade and is now above global and EM median as of 2022 • Doctor/1,000 population ratio for Egypt is better Egypt GCC ME
Slide 11: Growing Population & Prevalence of Lifestyle Diseases
Growing Population & Prevalence of Lifestyle Diseases Egypt’s Population and Age Profile Composition Forecast • The current population of Egypt stands at 105 mn (as of 2023) rising from 80 mn in 2010, a CAGR of over 2% for this period. Projections forecast Egypt’s population to reach 130 mn by 2030
Slide 12: Competitive Advantages
Competitive Advantages 12
Slide 13: A leading healthcare services platform with sustainable competitive advantages
A leading healthcare services platform with sustainable competitive advantages CHG was a pioneering force in Egypt's private healthcare sector, recognizing its potential early on. The Group introduced an innovative 360-degree integrated management system, focused on delivering quality patient care a
Slide 14: Key Pillars That Make Up CHG's Definition of Centers of Excellence
A High-Level Perspective on the Key Pillars That Make Up CHG’s Definition of Centers of Excellence Defining Centers of Excellence Select Examples of CHG’s Centers of Excellence Competitive Defined Scope & Nursing & Residents Advantage & Sales Focus Team Differentiation Consumables Medical Equipment
Slide 15: Growth Strategy & New Business
Growth Strategy & New Business 15
Slide 16: Defined Core Growth Strategy
Defined Core Growth Strategy Integrating the platform to Leveraging payor and achieve higher efficiencies supplier relationships Geographic expansion in Egypt Enhancing utilization and linked to following optimizing existing capacity Establish centers of while expanding capacities and the main payor
Slide 17: Cleopatra October Hospital – CHG's Flagship Hospital of West Cairo
Cleopatra October Hospital – CHG’s Flagship Hospital of West Cairo & the Latest Addition Facility Overview CHG has transformed the hospital into a world-class tertiary hospital, specialized Oct: Added Operating Rooms in orthopedic and spine surgeries with the biggest physiotherapy rehabilitation, Ph
Slide 18: Network expansion through Sky Hospital in East Cairo
CHG continues its network expansion into underserved regions through Sky Hospital – East Cairo’s new State-of-the-Art Flagship project In line with CHG's strategy to meet growing demand for quality healthcare services that stems from underserved regions, the Group has is in the process of launching
Slide 19: First regional partnership in Saudi Arabia
With a plethora of experience, CHG ventures into a new expansion model and prepares for its first regional partnership in Saudi Arabia CHG has ventured into a strategic partnership with Mumtada Medical Company to support the launch a new 200-bed rehabilitation and LTC facility in Riyadh, KSA. Levera
Slide 20: Governance & Management Information
Governance & Management Information 20
Slide 21: CHG employs best-in-class corporate governance standards
CHG employs best-in-class corporate governance standards that are in line with the highest international standards… OPERATIONS ABC No Referral Fees Medical Council • CHG has a zero-tolerance approach to bribery and • CHG does not pay any referral fees or kickbacks to • CHG recently launched a group-
Slide 22: Board of directors dominated by independent and non-executive directors
… supported by a board of directors dominated by experienced independent and non-executive directors… The Group’s Board of Directors provide the necessary oversight and combination of expertise to thoroughly oversee the Group’s corporate governance framework, a cornerstone of the Group’s long-term s
Slide 23: Highly competent and ambitious management team
… and led by a highly competent and ambitious management team comprised of accomplished industry veterans with vast experience in the healthcare sector The Group is managed by a seasoned team that brings along deep industry experience to their respective positions gained in leading regional and mult
Slide 24: Q1 2024 in Review
Q1 2024 in Review 24
Slide 25: Historical Financial Performance Overview
Historical Financial Performance Overview Q1 2024 Snapshot The Group achieved record-high revenues of EGP 1,181 million in 1Q24, up 52% from 1Q23, driven by the expansion of CHG’s core business and strategic price increases in January 2024. Profitability margins improved significantly, with increase
Slide 26: Group Revenue Contribution by Hospital & Segment
Group Revenue Contribution by Hospital & Segment Revenue Contribution by Hospital – 1Q23 Revenue Contribution by Segment – 1Q23 2% 3% 5% CHG's outpatient and emergency 13% departments significantly boosted 21% 6% 17% 37% growth in inpatient services, surgical procedures, and 6% catheterization labs,
Slide 27: Core Business Driven Growth
Core Business Driven Growth Volume, ARP, & Revenue | Volume, ARP, & Revenue | Volume, ARP, & Revenue | Surgeries Outpatients Laboratory EGP 17,383 Rev. in EGP Mn. Vol. In 000’ Rev. in EGP Mn. Vol. In 000’ Rev. in EGP Mn. EGP 23,375 300 400 600 160 140 10,0 00 350 EGP 424 EGP 469 EGP 224 EGP 263 140
Slide 28: CLHO.CA Share Performance
CLHO.CA Share Performance CHG’s Price Performance Since IPO | Rebased to 100 Valuation Multiples 1 Month VWAP Closing June 27th 14.1x 14 6.78 7.40 12.4x 10.8x 9.9x 8.9x 8.4x 12 EV/EBITDA Valuation 10 Multiples (x) Volume (mn) 8 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q1 2024 6 33.9x 4 29.8x 23.8x 2
Slide 29: Appendix: Financial Statements
Appendix: Financial Statements 29
Slide 30: Consolidated Income Statement
Consolidated Income Statement Income Statement | EGP mn 1Q2023 1Q2024 % change Revenues 777 1181 52% Cost of sales (512) (746) 46% Gross profit 265 436 64% Gross Profit Margin 34% 37% General & administrative expenses (115) (156) 36% Cost of acquisition activities (1) (1) 0% Provisions (3) (5) 59% O
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet | EGP mn 31 December 2023 31 March 2024 Non-current assets Fixed assets 2,176.6 2,460.5 Intangible assets 407.3 406.8 Right of use 133.2 125.2 Payment under investment - - Investment in associates 3.8 3.8 Total non-current assets 2,720.9 2,996.3 Current asset
Slide 32: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement | EGP mn 31 March 2023 31 March 2024 Cash flow from operating activities: Profit before tax 139.5 268.1 Adjustments for: Depreciation 36.7 42.7 Right of use depreciation - - Amortization of intangible assets 4.0 0.5 Allowance for impairment of cur
Slide 33: Thank you
Thank you INVESTOR RELATIONS CONTACTS SHAREHOLDER INFORMATION Tel: +20 0122 3333302 EGX: CLHO.CA Email: farah.sami@cleohc.com Listed: June 2016 Website: https://www.cleopatrahospitals.com/en/investors/ Shares Outstanding: 1.4 billion 33
Cleopatra Hospital Company — Q1 2024 Earnings Presentation on 6ix