Ihh Healthcare Bhd. · MYX:IHH
Ihh Healthcare Bhd — Maybank Bursa: IHH Investor Presentation (October 2021)
33 slides from Ihh Healthcare Bhd's conference presentation, October 2021
Slide 1: Maybank Bursa: IHH Investor Presentation
MAYBANK BURSA: IHH INVESTOR PRESENTATION OCTOBER 2021
Slide 2: Our Values, Vision, Mission and Purpose
OUR VALUES OUR VISION To be the world’s most trusted healthcare services network PATIENTS FIRST INTEGRITY EMPATHY OUR MISSION We put patient’s We do the right thing We listen to our hearts To take exemplary care of our patients needs first anchored around our people who strive to continuously raise
Slide 3: 80 Hospitals in 10 Countries
IHH HAS 80 HOSPITALS IN 10 COUNTRIES • Malaysia • Brunei 16 Hospitals 1 Hospital • Singapore • Bulgaria 4 Hospitals 3 Hospitals • Turkey • Macedonia 16 Hospitals 1 Hospital • India • Serbia 34 Hospitals 1 Hospital • Greater China • Netherlands 3 Hospitals 1 Hospital Key Markets Other markets 3
Slide 4: COVID-19: At the Frontline of Trust
COVID-19: AT THE FRONTLINE OF TRUST AT THE FRONTLINE WITH AT THE FRONTLINE OF AT THE FRONTLINE OF OUR PEOPLE INNOVATION POSITIVE CHANGE Transforming care Strengthening Caring for our own through virtual public-private consultations partnerships Greater Increasing our Enhancing safety transparency la
Slide 5: Our Strategy 2020 to 2024
EXTRACTING SYNERGIES Drive productive improvements leveraging best practices across group to be the best healthcare engineering company Group procurement synergy programme Enhance operational efficiency to become one-IHH network DRIVING EFFICIENT GROWTH OUR Improve asset turnover and drive bed utili
Slide 6: Initiatives to Doubling ROE and Beyond
Initiatives to doubling ROE and beyond ROE New revenue streams Improve occupancy rates of current operations Improve Target to achieve 5% productivity & more and reducing costs Reduce losses from entities Post-Covid recovery Initiatives to double ROE from 2020 to 2024 6
Slide 7: Key Financial Highlights
KEY FINANCIAL r HIGHLIGHTS KES
Slide 8: Strong performance on resilient core operations and strong cost controls
Q2 2021 Strong performance on resilient core operations, delivery of COVID-19 related services and strong cost controls Revenue (QTD) EBITDA (QTD) Net Operating Income1 (QTD) Net Income2 (QTD) RM'mil RM4.3 b ( 66% vs Q2’20) RM1.1 b ( 314% vs Q2’20) RM463.6 m ( 651% vs Q2’20) RM483.3 m ( 501% vs
Slide 9: Financial Performance from Q1'19 to Q2'21
Q2 2021 Financial Performance from Q1’19 to Q2’21 5,000 40% 4,270 3,946 4,000 3,788 3,836 3,766 3,643 3,645 3,555 28% 30% 3,518 26% 24% 24% 22% 3,000 21% 22% 21% 2,565 20% 2,000 11% 11% 10% 10% 10% 1,042 1,106 6% 961 1,000 814 774 829 734 833 2% 6% 5% 419 483 1% 376 236 236 268 185 90 41 31 0% 1% 0
Slide 10: Improving Capital Efficiency Ratios
Q2 2021 Improving Capital Efficiency Ratios ROE Net Debt / EBITDA 2.78 7.2% 2.61 2.59 2.42 2.28 4.5% 2.8% 1.3% 1.73 -0.4% -0.7% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 ROCE Net Debt / Equity 0.29 0.29 6.9% 0.28 0.26 0.26 0.25 4.9% 4.6% 3.9% 3.6
Slide 11: Strong cash balances and proactive capex management
Strong cash balances and proactive capex management Cashflows for YTD 30 June 2021 (RM’mil) 1,452 157 2,264 19 2,125 1,453 Cash @ 1 Jan 2021 Net cash from Net cashfrom Investing Net cash from Effect of FX Cash @ 30 Jun 2021 Operating Activities Activities Financing Activities Cash Reconciliation to
Slide 12: Balance Sheet: Maintain Healthy Gearing Ratios
Balance Sheet: Maintain Healthy Gearing Ratios As at As at 30 Jun 2021 31 Dec 2020 RM'mil RM'mil Total Assets 44,543 44,534 - Tangible Assets 30,084 30,421 - Intangible Assets Goodwill 12,377 12,123 Other intangibles 2,082 1,990 Total Liabilities (17,113) (17,499) Total Equity 27,431 27,035 Non-cont
Slide 13: Key Operational Highlights
KEY OPERATIONAL HIGHLIGHTS 8
Slide 14: Q2 2021 Highlights: Securing operational continuity in Singapore
Q2 2021 Q2 2021 Highlights: Securing operational continuity in Singapore Extension of lease agreements Lfor three hospitals in Singapore Extended term of ~20 years to 31 December 2042 • Represents business continuity and operational stability for IHH Healthcare • S$150 million in upgrades to our fac
Slide 15: COVID-19: Deepening trust with patients, employees and governments
COVID-19: Deepening trust with patients, employees and governments We are supporting governments now and post-COVID to raise the bar on the healthcare ecosystem Q2’21 Markets: COVID-19 Services Provided Revenue (%) Malaysia • COVID lab testing • Allocated about 10% of our beds for COVID patients • T
Slide 16: IHH Laboratory vision
Q2 2021 IHH Laboratory vision: To develop the world’s most trusted medical laboratory services network Lab Revenue (1H 2021) RM 975m* Leadership position in country** Laboratories Labs (in revenue) #1 Singapore 5 #1 Malaysia 30 #1 Turkey 28 India #2 *includes SRL, PLS, PPP and Labmed 420+ **by reven
Slide 17: Strong performance from delivery of COVID-19 related services
Q2 2021 At the forefront of our fight against COVID-19: Strong performance from delivery of COVID-19 related services Total Covid-19 related tests rendered (since 2020) 7,076,000 Q2 2021 Cumulative Laboratories Covid Tests since 2020 Covid Tests 428,000 1,251,000 397,000 1,082,000 171,000 659,000 1,
Slide 18: Inpatient admission not fully recovered; revenue intensity remains strong
Q2 2021 Inpatient admission not fully recovered; revenue intensity remains strong Inpatient Admissions1 (Number) PPL - Malaysia Singapore Malaysia PPL -India Malaysia PPL - Malaysia Turkey & Europe Q2 YoY Growth 22% Q2 YoY Growth 26% Q2 YoY Growth 46% Q2 YoY Growth 49% 52,637 53,375 83,723 51,641 17
Slide 19: Malaysia: Steady recovery with strong contributions
Q2 2021 Malaysia: Steady recovery with strong contributions from complex medical cases and COVID-19 tests Q2 2021 vs. Q2 2020 Revenue (RM'mil) Occupancy 700.0 662.4 611.9 RM 662.4m 600.0 Revenue 50% (↑53%) 48% 500.0 434.3 400.0 43% 300.0 40% RM185.5m 39% EBITDA (↑158%) 200.0 100.0 - 30% EBITDA Margi
Slide 20: Singapore: Resilient performance in Q2
Q2 2021 Singapore: Resilient performance in Q2 Revenue (RM'mil) Occupancy Q2 2021 vs. Q2 2020 1,400.0 60% 1,261.9 1,155.5 RM1,261.9m 1,200.0 Revenue (↑57%) 1,000.0 805.9 800.0 54% 55% 55% 600.0 RM434.4m 54% EBITDA 400.0 (↑94%) 200.0 - 50% Q2 2020 Q1 2021 Q2 2021 EBITDA Margins 34.4% (%) (↑6.6%) Reve
Slide 21: Turkey and Europe: Strong revenue recovery in Q2
Q2 2021 Turkey and Europe: Strong revenue recovery in Q2 Q2 2021 vs. Q2 2020 Revenue (RM'mil) Occupancy 1,200.0 1,060.5 80% 1,053.3 RM1,053.3m 1,000.0 75% Revenue (↑72%) 800.0 70% 613.9 600.0 65% RM300.6m 400.0 60% EBITDA (↑304%) 200.0 55% - 50% Q2 2020 Q1 2021 Q2 2021 EBITDA Margins 28.5% Revenue O
Slide 22: Turkey & Europe Operations: Non-Lira contributions
Q2 2021 Turkey & Europe Operations: Non-Lira contributions from operations steadily increased since 2017 RM5.7 b RM5.2 b RM4.1 b Revenue contribution from (%): RM3.2 b RM4.3 b Domestic Patients (Turkey Operations) Foreign Patients (Turkey Operations) European Operations 62% 60% 67% 65% 73% 11% 12% 1
Slide 23: India: Revenue recovery on COVID and non-COVID services
Q2 2021 India: Revenue recovery on both COVID and non-COVID services growth Q2 2021 vs Q2 2020 Revenue (RM'mil) Occupancy 1,200.0 90% RM972.7m 1,000.0 972.7 80% Revenue (↑133%) 830.6 68% 800.0 70% 62% 600.0 60% 416.6 RM187.9m 400.0 50% EBITDA (↑356%) 200.0 37% 40% - 30% Q2 2020 Q1 2021 Q2 2021 EBITD
Slide 24: Gleneagles Hong Kong: EBITDA breakeven achieved in May 2021
Q2 2021 Gleneagles Hong Kong: EBITDA breakeven achieved in May 2021 Year-on-year: • Revenue increased 46% to RM177.2 million; EBITDA losses improved by 93% to RM2.8. million. • Inpatient admissions increased 39% while revenue intensity increased 5.5%. • For the quarter, average occupancy was at 61%.
Slide 25: Environment, Social and Governance (ESG)
ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) 8
Slide 26: ESG: IHH Sustainability Strategy
ESG: IHH Sustainability Strategy • IHH’s three-pronged sustainability strategy guides the implementation of sustainability initiatives and supports the Group’s overall business strategy. • It covers critical areas involving opportunities for growth and learning, for IHH to achieve economic, environm
Slide 27: ESG Ratings
ESG Ratings: MSCI: • Measures a company’s resilience to long-term, financially relevant ESG risks. • IHH’s ratings improved from a BBB to an A in the latest review. • Improved data security disclosures and anti- corruption measures drove the upgrade. • Evidence suggests IHH maintains high product qu
Slide 28: Key Takeaways & Outlook
KEY TAKEAWAYS & OUTLOOK 8
Slide 29: Outlook: Refreshed Strategy centered on trust
Q2 2021 Outlook Refreshed Strategy centered on trust; remain agile in adapting to pandemic • Short-term impact from resurgence of COVID-19 cases as the pandemic evolves with movement restrictions across markets where we operate and are mitigating this by executing on our Refreshed Strategy by: o Ext
Slide 30: Enhancing stakeholder outreach: Social media channels
Enhancing stakeholder outreach: Social media channels Join our social media channels for latest news, events, updates and thought leadership pieces linkedin.com/company/ihh-healthcare-berhad t.me/ihhir facebook.com/ihhhealthcare/ twitter.com/ihh_healthcare 30
Slide 31: Thank You
THANK YOU To be the world’s most trusted healthcare services network Leading brands in our home Leveraging international scale markets services network Outstanding reputation for Continuously deepening clinical outcomes operating capabilities
Slide 32: Revenue: QoQ & YoY Comparison
Revenue: QoQ & YoY Comparison Q-on-Q QTD Y-on-Y YTD Y-on-Y 1 Revenue Q2 2021 Q1 2021 Variance Q2 2021 Q2 2020 Variance YTD 2021 YTD 2020 Variance RM'mil RM'mil % RM'mil RM'mil % RM'mil RM'mil % Parkway Pantai: - Singapore 1,261.9 1,155.5 9% 1,261.9 805.9 57% 2,417.3 1,820.7 33% - Malaysia 662.4 611.
Slide 33: EBITDA: QoQ & YoY Comparison
EBITDA: QoQ & YoY Comparison Q-on-Q QTD Y-on-Y YTD Y-on-Y 1 EBITDA Q2 2021 Q1 2021 Variance Q2 2021 Q2 2020 Variance YTD 2021 YTD 2020 Variance RM'mil RM'mil % RM'mil RM'mil % RM'mil RM'mil % Parkway Pantai: - Singapore 434.4 417.5 4% 434.4 224.1 94% 851.9 552.4 54% - Malaysia 185.5 150.7 23% 185.5
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