Middle East Healthcare Company · TADAWUL:4009
Middle East Healthcare — Q1 2023 Earnings Presentation
31 slides from Middle East Healthcare's earnings presentation, 2023
Slide 1: Saudi German Health Investor Presentation – 1Q 2023
Saudi German Health Investor Presentation – 1Q 2023
Slide 2: SGH at a Glance
8 ~1.3k bed ~90% Operational Population Hospitals Capacity Access 7.2k 1.3k 2.5k Total Total Total Staff Doctors Nurses 3.8 69% 63% SGH at a Glance Avg. Length of Utilization Rate Utilization Rate Stay (Beds) (Clinics) 482k* 10.6mn* 267k* Inpatient Outpatient Performed Censes Censes Surgeries 2 *Agg
Slide 3: The Group
The Group Mission Vision To Provide Evidence-Based, Safe Medical To be the Leader in Improving People’s Lives. Services Delivered with Effective Management, Engagement with Our Community and Fulfillment of Our Stakeholder’s Needs. 3
Slide 4: Table of Content
TABLE OF CONTENT 01 02 03 04 05 Overview Market Landscape Financial & Updates & 1Q 2023 Results Operational Strategic Focus Highlights 4
Slide 5: Overview
01 Overview 5
Slide 6: Our People
Our People Eng. Sobhi Batterjee Makarem Batterjee Dr Ahmed Shebl Madani Hozaien Chairman President and Vice Chairman Group Chief Executive Officer Group Chief Financial Officer 6
Slide 7: About Saudi German Health
About Saudi German Health Saudi German Health at a Glance Middle East Healthcare Company (MEAHCO), publicly known as Saudi German Health (SGH), is a leading healthcare provider in Saudi Arabia. Building on a long family legacy as medical pioneers in the Kingdom, Saudi German Health was founded by th
Slide 8: Equity Growth Story
Equity Growth Story 217 Licensed Beds 300 Licensed Beds 150 Licensed Beds 150 Licensed Beds 35 Operational Beds 204 Operational Beds 214 Operational Beds 90 Operational Beds 98 Operational Beds 16 Clinics 131 Clinics 69 Clinics 24 Clinics 16 Clinics 30 Clinics Complex 1988 2001 2017 2020 2022 Establ
Slide 9: Saudi German Health's Brand Footprint
Saudi German Health's Brand Footprint Saudi Arabia 4 • 7 Owned ➢ Jeddah COUNTRIES ➢ Asser ➢ Riyadh ➢ Madinah ➢ Hail ➢ Dammam 13 ➢ Makkah • 1 Leased HOSPITALS ➢ Jeddah United Arab Emirates • 3 Hospitals 30+ ➢ Dubai ➢ Sharjah ➢ Ajman YEARS Egypt • 1 Hospital 44 ➢ Cairo Hospitals Owned SPECIALITIES Yem
Slide 10: Accreditations
Accreditations Jeddah Jeddah Asser Asser Riyadh Riyadh Madinah Madinah Hail Hail Dammam Makkah Dammam Accredited 10 In Progress
Slide 11: Share Overview
Share Overview Shareholder Structure SGH Share Data Market Cap. (SAR mn) 3,465 0 Market Cap. (USD mn) 924 Others 52-Week High (SAR) 38.70 92mn 45% 55% Shares Bait Al-Batterjee 52-Week Low (SAR) 25.05 3-month ADTV (SAR mn) 19 12-month ADTV (SAR mn) 19 1 Year Stock Performance vs. TASI Volume Traded (
Slide 12: Market Overview
02 Market Overview 12
Slide 13: Population at a Glance
Population at a Glance Gender Breakdown (%) Age Breakdown (%) 14% 0-19 31% Male 20-34 42% Female 35 - 49 58% 28% >50 27% Breakdown by Administrative District (%) 26% 25% 15% 7% 7% 4% 5% 3% 2% 2% 1% 1% 2% Riyadh Makkah Madinah Al-Qassim Eastern Region Asir Tabuk Hail Northern Jazan Najran Al-Bahah Al
Slide 14: Sector Growth Profile
Sector Growth Profile No . of Baby Deliveries (# 000) Breakdown by Institution (%) MOH Other Gov.Sector Private Sector Baby Deliveries 602 593 40% 39% 40% 17% 17% 17% 578 43% 44% 44% FY 16/17 FY 17/18 FY 18/19 FY 16/17 FY 17/18 FY 18/19 No. of Surgeries (# mn) 18/19 Breakdown by Type (%) General 21%
Slide 15: Inpatients & Outpatients at a Glance
Inpatients & Outpatients at a Glance Breakdown of Inpatients Sector Breakdown 49% 46% 42% 40% 39% 36% Inpatients 28% 15% 18% 16% 72% FY 16/17 FY 17/18 FY 18/19 Saudi Non-Saudi MOH Other Gov.Sector Private Sector Breakdown of Outpatients Sector Breakdown 43% 39% 43% 39% 44% 37% Outpatients 75% 25% 17
Slide 16: With Clear Room for Growth
With Clear Room for Growth Beds Hospitals No. Beds (# 000) No. of Hospitals (#) 78.6 504 77.0 498 494 75.1 484 73.0 70.8 470 69.4 462 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 No. of Beds/ 10k Person (#) No. of Hospitals/ 100k Person (#) 22.5 1.50 22.5 1.49 22.4 1.48 22.4 1.47 22.4
Slide 17: Health Insurance (1-2)
Health Insurance (1-2) Highlights Gross Written Premiums (SAR bn) Net Written Premiums (SAR bn) 24 25.1 24.2 Total Saudi Insurance 22.5 22.8 23.9 21.6 21.9 23.4 Companies 19.1 19.9 19.0 18.4 19.3 18.3 11.6mn FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 9M 2021 9M 2022 FY 2017 FY 2018 FY 2019 FY 2020 FY 2
Slide 18: Health Insurance (2-2)
Health Insurance (2-2) Gross Written Premiums (% of Total Market) Net Written Premiums (% of Total Market) 70% 70% 60% 69% 59% 59% 59% 59% 68% 69% 57% 64% 52% 60% FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 9M 2021 9M 2022 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 9M 2021 9M 2022 Net Earned Premiums (% of
Slide 19: Financial & Operational Highlights
03 Finanical & Opeational Highlights 19
Slide 20: Key P&L Indicators
Key P&L Indicators Revenue (SAR mn) EBITDA (SAR mn) Net Profit After Zakat (SAR mn) 371 2,152 292 1,873 286 1,751 252 1,497 1,462 232 1,391 202 196 165 123 94 90 638 513 72 12 52 20 68 2017 2018 2019 2020 2021 2022 1Q 1Q 2017 2018 2019 2020 2021 2022 1Q 1Q 2017 2018 2019 2020 2021 2022 1Q 1Q 2022 20
Slide 21: Key Balance Sheet Metrics
Key Balance Sheet Metrics Assets (SAR bn) Cash & Cash Equivalent (SAR mn) Capital Structure (SAR bn) Total Equity Debt 4.7 111 4.5 2.5 4.0 4.1 3.6 2.0 2.2 2.2 3.3 2.0 1.9 2.7 1.5 2.4 1.5 1.5 1.6 1.5 1.5 54 1.3 1.4 1.3 45 1.0 1.3 44 1.0 28 0.5 0.6 17 16 14 0.3 0.0 2017 2018 2019 2020 2021 2022 1Q 1Q
Slide 22: Key Operational Metrics (1-2)
Key Operational Metrics (1-2) Inpatient Cases (# 000) Outpatient Cases (# mn) Performed Surgeries (# 000) 71 74 70 1.7 50 45 57 1.3 1.3 45 48 1.2 1.2 1.2 35 29 23 25 19 21 0.5 0.4 10 12 2017 2018 2019 2020 2021 2022 1Q 1Q 2017 2018 2019 2020 2021 2022 1Q 1Q 2017 2018 2019 2020 2021 2022 1Q 1Q 2022 2
Slide 23: Key Operational Metrics (2-2)
Key Operational Metrics (2-2) Revenue by Clientele Revenue by Region Revenue by Type of Service IP 2% 5% 14% 0% 18% 11% Jeddah Insurance 28% Aseer OP 7% Riyadh MoH Madinah 53% 28% 58% Pharmacy Cash Hail 15% Dammam 28% Others 18% Makkah Trading & 16% Ancillary CoGS Breakdown Saudization Rate (%) Rece
Slide 24: Updates & Strategic Focus
04 Updates & Strategic Focus 24
Slide 25: Expansion & CAPEX
Expansion & CAPEX Project Capex Capacity Launch Date Hospital Renovation SAR 399 194 beds 1H SGH Jeddah & Tower Expansion million 22 clinics 2025 25
Slide 26: Turnaround Revolution
Turnaround Revolution Integration Diversification Digital Accreditation Restructure Transformation Cost Patients Technology Efficiency Satisfaction 26
Slide 27: Hospitals Under Management Pipeline
Hospitals Under Management Pipeline Egypt Pakistan Morocco • SGH Alex West • SGH Lahore • SGH Casablanca • SGH Giza • SGH Islamabad • SGH Karachi • BTPL Lahore 27
Slide 28: 1Q 2023 Results
05 1Q 2023 Results 28
Slide 29: Income Statement
Income Statement (In SAR mn) 1Q 2023 1Q 2022 Change Revenue 638 513 24% Cost of Revenue (412) (348) Gross Profit 225 165 37% Gross Profit Margin 35.3% 32.1% Selling & marketing Expenses (10) (5) General & Administrative Expenses (139) (125) Operating Profit 77 35 117% Operating Profit Margin 12.0% 6
Slide 30: Balance Sheet
Balance Sheet (In SAR mn) Mar 2023 Dec 2022 Property and Equipment 2,496 2,471 Right of Use Assets 64 63 Intangible Assets 10 7 Total Non-Current Assets 2,570 2,542 Inventories 131 149 Account Receivable 1,849 1,635 Prepayments and Others 144 157 Cash and Bank Balances 14 16 Total Current Assets 2,1
Slide 31: Thank You
Thank You Investor Relations contacts IR@sghgroup.net Jinan Alzarkan – Investor Relations Specialist JMAlzarkan@sghgroup.net Khaled Sadek – Group CIO KESadek@sghgroup.net
Middle East Healthcare Company (Saudi German Health) — Q1 2023 Earnings Presentation on 6ix