Mlp Saglik Hizmetleri As Class B · BIST:MPARK
Mlp Saglik Hizmetleri As Class B — MLP Care — İş Yatırım Istanbul Investor Conference 2022
37 slides from Mlp Saglik Hizmetleri As Class B's conference presentation, Sep 26, 2022
Slide 1: MLP Care Investor Presentation
MLP Care Investor Presentation İş Yatırım Istanbul Investor Conference - September 26, 2022
Slide 2: MLP Care: The #1 Private Hospital Group in Turkey
MLP Care: The #1 Private Hospital Group in Turkey Two brands and one concept targeting three different price points with The largest hospital group in 26 Hospitals in consistently outstanding medical service Total Turkey quality Established in 1993, listed on BIST in 2018 16,000+ Staff 1 ~5,050 Beds
Slide 3: At a Glance: MLP Care Q2 2022 Financial Highlights
At a Glance: MLP Care Q2 2022 Financial Highlights Revenue growth exceeding inflation Revenue EBITDA EBITDA improved mainly due to TL 2,230 m TL 539 m 68% Growth 77% Growth strong operational performance H1 2022: H1 2022: effective cost saving measures 74% Growth 74% Growth Reduced leverag
Slide 4: Our Growth Strategy Is Intact
Our Growth Strategy Is Intact MLP Care continues its asset light growth strategy both in Turkey and abroad Expand in Turkey Increase FMT revenue Expand in Foreign Countries Expanding in metropolitans through New hospital management Using digital marketing mid-large scale hospitals (min. 100 contract
Slide 5: Liv Hospital Brand Expands in Baku
Liv Hospital Brand Expands in Baku Map of Azerbaijan Liv Bona Dea Hospital Location: Baku / Azerbaijan Opening Date: Temmuz 2022 Key Statistics 37.5k sqm 156 Bed Capacity 28 Intensive Care Unit 12 Operating Rooms 5
Slide 6: Revenue Grows Above Inflation
Revenue Grows Above Inflation Revenue (TLm) 87.6% 73.7% 4,417 88.4% 67.5% 2,542 2,230 1,331 Q2 2021 Q2 2022 H1 2021 H1 2022 Denotes growth of Revenue vs. the same period of the last year 6 Denotes growth of Revenue vs. the same period of the last year excluding Sentez
Slide 7: All Payer Types Continue To Grow
All Payer Types Continue To Grow H1 2022 150% Revenue from SSI was up by 30% in Q2 2022 4% (SSI Insurance allows for a wide addressable market, 186% 36% which is c.98% of the total population) 20% 16% Self pay was up by 50% in Q2 2022 Revenue from PMI, Top-up & Contracted Institutions was up b
Slide 8: # of People Top-up Insurance Users Reached 2.9 m
# of People Top-up Insurance Users Reached 2.9 m # of People with Insurance in Turkey (in thousand) 2,571 2,899 5,469 2,399 2,022 4,421 Growth (H1 2022 – H1 2021) 7.1% 43.3% 23.7% PMI Top-up PMI+Top-up # of People with Top-up Insurance in Turkey (in thousand) 6.2022; 2,899 6.2021; 2,022 Average LTM
Slide 9: FMT Revenue Triples In TL Terms
FMT Revenue Triples In TL Terms Medical Tourism Revenue (USD m) TOP 10 FMT Revenue % by Department in H1 2022 51.8% 49 47.5% 12% 11% 32 11% 10% 6% 5% 3% 3% 3% 3% 25 Hematology Hematology Orthopedics Oncology Oncology Cardiology Ear-Nose-Throat General Surgery Brain and Neuro Gynecology and Radiation
Slide 10: All Revenue Segments Continue To Grow
All Revenue Segments Continue To Grow Domestic Patient Medical Tourism Ancillary Business Revenue Revenue 58.7% 186.2% 150.2% 3,532 177.5% 160 52.2% 724 132.7% 1,762 399 69 Q2 2022 H1 2022 Q2 2022 H1 2022 Q2 2022 H1 2022 Domestic Revenue q-o-q Growth Accelerated Growth of Foreign Increase in Managed
Slide 11: Continued Improvement in Average Prices
Continued Improvement in Average Prices Outpatient Revenues (TLm) Inpatient Revenues (TLm) 68.0% 52.5% 50.7% 19.2% 17.3% 33.3% 255 455 441 156 1,509 2,024 898 1,327 H1 2021 Volume & Mix Price H1 2022 H1 2021 Volume & Mix Price H1 2022 Average Revenue Per Visit (ARPV) Average Revenue Per Protocol (AR
Slide 12: EBITDA Is Up By 74%
EBITDA Is Up By 74% EBITDA (TLm)1 80.3% 74.4% 90.9% 1,040 76.8% 596 539 305 Q2 2021 Q2 2022 H1 2021 H1 2022 1 EBITDA calculated by deducting general administrative expenses from gross profit and adding depreciation and amortization expenses Denotes growth of EBITDA vs. the same period of the last ye
Slide 13: Prudent Cost Management
Prudent Cost Management Cost of Service and G&A Expenses as a % of Revenues Cost Saving Measures enables us to reach the favourable EBITDA Margin EBITDA Margin 23.4% 23.5% Material costs as a % of revenue decreased in H1 2022 due to the lagging effect of increased costs on the back 0.8% 1.2% of ef
Slide 14: Bottom Line Improves On The Back Of Strong Operations
Bottom Line Improves On The Back Of Strong Operations Net Profit (TLm) Net Profit (TLm) Allocated to Equity Holders of the Parent 246.4% 208.6% 291.6% 327.7% 604 577 251.6% 398.2% 404 407 174 147 95 82 Q2 2021 Q2 2022 H1 2021 H1 2022 Q2 2021 Q2 2022 H1 2021 H1 2022 Denotes growth of Net Profit and N
Slide 15: Leverage Ratios Continue To Decline
Leverage Ratios Continue To Decline 2,500 4.0 Net Debt (TLm) 3.5 2,000 2,116 2,069 3.0 1,500 1,521 2.5 2.2x 1,344 Reduction 345mTL 1,176 2.0 1,000 1.5x 1.5 500 Reduction 689mTL 487 1.0 0.7x - 0.5 2020 2021 H1 2022 Net Debt (exc. IFRS 16) Net Debt (inc. IFRS 16) Net Debt/EBITDA FX risk of balance s
Slide 16: Strong Cash Generation
Strong Cash Generation Maintenance Capex (TLm) Total Capex (TLm) OCF/ EBITDA FCF/ EBITDA 6.7% 80.9% 50.9% 58.9% 37.0% 5.1% 2.8% 2.1% 612 384 125 224 482 304 169 53 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 % of Revenue % of Revenue % of EBITDA % of EBITDA 16
Slide 17: We Accelerate Our Sustainability Efforts
WeAccelerate We accelerate Our our sustainability Sustainability efforts Efforts Completed Planned Sustainability Working Group To Be More Comprehensive Sustainability trainings for employees Analysing stakeholders’ views for materiality Materiality matrix Calculating detailed carbon footp
Slide 18: Why Invest In MLP Care?
Why Invest In MLP Care? 1 Operates in the Attractive Turkish Healthcare Market 2 Clear Leader in Private Hospital Provision 3 Strong Brand Recognition and Unique Business Model 4 Clinical Excellence and World Class Service Offering 5 Superior Historical Financial Performance 6 Outstanding Platform f
Slide 19: Operates In The Attractive Turkish Healthcare Market
1 Operates In The Attractive Turkish Healthcare Market Turkey is an attractive healthcare market with a growing elderly population and level of affluence, with significant scope for expansion compared to OECD players. Turkish Healthcare Spending to Providers1 (TLbn) Growth in Aging Turkish Populatio
Slide 20: Operates In The Attractive Turkish Healthcare Market
1 Operates In The Attractive Turkish Healthcare Market Private operators have increased their market share by increasing capacity and by focusing on procedures with higher complexity. Private players now account for 22% of beds, but provide 53% of complex surgeries. Number of Hospital Beds (’000) Nu
Slide 21: Operates In The Attractive Turkish Healthcare Market
1 Operates In The Attractive Turkish Healthcare Market Supportive government policies have underpinned the expansion of private hospital groups Healthcare System and Key Participants Universal Healthcare Coverage with Patient Choice Regulation Funding Service Patients Universal healthcare coverage (
Slide 22: Clear Leader In Private Hospital Provision
2 Clear Leader In Private Hospital Provision MLP Care is the largest multi-specialty hospital group in Turkey and the only private player with a truly nationwide network MLP Care network (# of hospitals and locations) TURKEY AZERBAIJAN İstanbul Ordu Trabzon 9 2 2 Samsun 1 2 Baku Kocaeli 1 1 1 Tokat
Slide 23: Clear Leader In Private Hospital Provision
2 Clear Leader In Private Hospital Provision MoH is investing in the PPP program, but large private players do not expect to see an impact in the near / mid term Highly illustrative schematic of the Turkish Healthcare Sector PPP success factors Top end of the Private Hospital market City hospitals
Slide 24: Strong Brand Recognition And Unique Business Model
3 Strong Brand Recognition And Unique Business Model Addressing Multiple Price Points Two brands and one concept targeting three different price points with consistently outstanding medical service quality Overview and Positioning 26 Total Hospitals in Portfolio Operational excellence 7 Premium Prem
Slide 25: Clinical Excellence And World Class Service Offering
4 Clinical Excellence And World Class Service Offering MLP Care benefits from a “Virtuous Circle” of best-in-class service, infrastructure and academic affiliations JCI accreditation SRC1 University affiliations The Gold Standard in Healthcare Globally The Global standard for quality surgical care M
Slide 26: Clinical Excellence And World Class Service Offering
4 Clinical Excellence And World Class Service Offering Top tier talent and patients are attracted to MLP Care’s unrivalled reputation, resulting in a steadily growing market share Ability to attract and retain top-tier physicians… CAGR Key points of attraction Proven track record of physicians recru
Slide 27: Superior Historical Financial Performance
5 Superior Historical Financial Performance EBITDA Growth > Net Sales Growth > CPI (Consumer Price Index) Net Sales (TLm) EBITDA2 (TLm) 21% 30% CAGR 2014-2021 1 CAGR 2014-2021 98% 4 88% 4 80% 79% 41% 44% 44% 21% 17% 19% 22% 36% 12% 18% 10% 8% 16% 7% 9% 9% 20% 15% 12% 12% 3 3 3 3 2015 2016 2017 2018
Slide 28: Outstanding Platform for Further Growth
6 Outstanding Platform for Further Growth Proven track record of greenfield expansions and M&A Total Hospitals 30 25 26 27 29 31 29 30 26 At Year End MLP Care has added on average c.400 beds p.a.1 Greenfield through greenfield projects since 2014 Multiple opportunities identified for expanding b
Slide 29: Outstanding Platform for Further Growth
6 Outstanding Platform for Further Growth MLP Care has several avenues to continue its growth trajectory Top line growth via the Growth through favourable insurance scheme revenue diversification MLP Care has increased its market share in PMI (private medical insurance) Self-Pay share of total p
Slide 30: Appendix
Appendix Revenue Breakdown By Payor Type Historical Financial Statements Capital, Shareholder Structure & Subsidiaries Key Historical Milestones 30
Slide 31: Revenue Diversification Through Growing Segments
Revenue Diversification Through Growing Segments 2016 2021 (33%) 109% 3% 6% 12% 24% 5% 24% 16% 39% 83% 29% 34% 31% SSI Self-pay PMI, Top-up & Medical Tourism Other 34% Contr. Inst. Revenue from PMI, Top-up & Contracted Institutions grew by 83% in 2021 Medical Tourism grew by 109% in 2021 SSI I
Slide 32: Historical Balance Sheet
Historical Balance Sheet Reviewed Reviewed Audited TLm June 30, 2022 June 30, 2021 December 31, 2021 Cash and cash equivalents 1,158 580 680 Financial investments 186 - - Trade receivables 1,083 1,279 1,318 Inventory 436 118 285 Short term other assets 539 454 458 Current assets 3,403 2,431 2,741 Ta
Slide 33: Historical P&L Statements
Historical P&L Statements Reviewed Reviewed Change (%) Q2 2022 Q2 2021 Change (%) TLm H1 2022 H1 2021 Revenues 4,417 2,542 73.7% 2,230 1,331 67.5% Cost of service (-) (3,189) (1,907) 67.2% (1,593) (999) 59.5% Gross profit 1,228 635 93.2% 637 332 91.7% General administration expenses (-) (399) (194)
Slide 34: EBITDA Reconciliation
EBITDA Reconciliation TLm H1 2022 H1 2021 Q2 2022 Q2 2021 Revenue 4,417 2,542 2,230 1,331 Cost of service 3,189 1,907 1,593 999 Gross profit 1,228 635 637 332 General administrative expenses (-) (399) (194) (201) (109) Depreciation and amortization expenses (Cost of service) 196 144 95 76 Depreciati
Slide 35: Capital, Shareholder Structure & Subsidiaries
Capital, Shareholder Structure* & Subsidiaries *Shareholding structure after public offering (excluding the 6,827k shares purchased by shareholders from publicly traded portion) Usta Group – Elbaşı Group Sancak İnşaat Turizm (Founders) Lightyear Healthcare Nakliyat B.V. • Muharrem Usta Free Float ve
Slide 36: Key Historic Milestones
Key Historic Milestones • Liv Hospital • Dr. Usta, • 2 • 3 hospitals • TURKVEN • 1 hospital Ankara shares • Founders Adem hospitals opened in • 1 hospital acquired • 1 hospital • MPARK acquired in increased to 100% Dr. • Carlyle 53.35% Elbaşı and opened in İzmir, opened in opened in Stocks Ankara (f
Slide 37: Disclaimer and IR Contact
Disclaimer This presentation may contain certain forward-looking statements concerning MLP Care’s future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available data. Act
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