Cleopatra Hospital Company · EGX:CLHO
Cleopatra Hospital — FY2017 Earnings Presentation
39 slides from Cleopatra Hospital's earnings presentation, 2018
Slide 1: Cleopatra Hospital Company Investor Presentation FY17
Cleopatra Hospital Company Investor Presentation FY17
Slide 2: At a Glance
At a 4 Glance Operational hospitals +20 Years of subsidiary track record across our platform • Cleopatra Hospital Company (the +2,300 “Group” or “CHC”), is the largest private hospital group in Egypt and consists of four operational hospitals all in Cairo, 643 namely: Patient beds including c. 420 T
Slide 3: Presence in Attractive Catchment Areas Across Greater Cairo
Presence in Attractive Catchment Areas Across Greater Cairo Location Mohandesin, Giza Location Heliopolis, Cairo Built-up Area 5,270 sqm Built-up Area 7,380 sqm Date Established 1996 Date Established 1984 # of Beds 121 # of Beds(2) 182 West Cairo Acquisition(1)(2) Location Dokki, Giza Built-up Area
Slide 4: Our Value Proposition
Our Value Proposition
Slide 5: Key Investment Highlights
Key Investment Highlights 1 2 3 4 5 6 Resilient and Leading position Capitalizing on Leverage on Solid financial Seasoned underpenetrated in a market with established integrated performance management market with high barriers to brand equity & platform and with potential team with structural entry
Slide 6: Resilient & Underpenetrated Market with Demand Growth
Healthcare Expenditure (EGP bn) Resilient & Underpenetrated 194 Public Private 178 163 Market with Demand Growth 149 137 131 113 117 96 98 107 83 90 81 83 70 53 60 55 59 65 71 77 30 36 43 50 Operating in an underpenetrated and growing market 2012 2013 2014 2015 2016f 2017f 2018f 2019f 2020f Hospital
Slide 7: Prevalence of Diseases in Egypt
Prevalence of Diseases in Egypt Lifestyle Diseases Cancer Prevalence (2012) (‘000 cases) Estimated Incidence Prevalence (1-year) Prevalence (3-years) 931 Hepatitis C Prevalence (2012) (‘000 cases) 6,023 492 358 208 3,403 146 145 105 83 59 54 34 26 21 17 17 14 12 10 9 9 7 6 6 6 4 3 2 1,473 1,215 254
Slide 8: Leading Position in a Market with High Barriers to Entry
Leading Position in a Market with High Barriers to Entry Largest institutional hospital group in Egypt by number of …Capturing the largest share of the top 10 large private …And by number of hospitals(1) … beds(1)… hospitals in Cairo 4 643 3(4) 41% 200(2) 300 (3) 4 out of top 10 145(2) 241(4) 1(2) 1
Slide 9: Capitalizing on Established Brand Equity & Subsidiary Track Record
Capitalizing on Established Brand Equity & Subsidiary Track Record Individual Subsidiary Track Record Est. 1976 Est. 1984 Est. 1996 Est. 1985 • Reputable brand in East Cairo area • Reputable brand in East Cairo area • Reputable brand in West Cairo area • Reputable brand in West Cairo area • 40 years
Slide 10: Leverage on Integrated Platform and Scale to Extract Synergies
Leverage on Integrated Platform and Scale to Extract Synergies • Centralized functions including quality control, IT, Institutionalized HR, finance, legal, business development and Group Management supply chain • Shared cost benefits • Bottom-up business planning • Standardized and improved quality
Slide 11: Solid Financial Performance
Solid Financial Group Revenue Contribution by Hospital (FY 2017 ) Performance* 17% 18% 44% Group Revenues (EGP mn) 30% 17% 16% 22% 1127 748 864 638 Cleopatra CSH NBH Al Shorouk 2014 2015 2016 2017 Group Gross Profit (EGP mn) 35% 29% 8% 339 234 252 Group Revenue Contribution by Segment 182 (FY 2017 )
Slide 12: Key Revenue Drivers
Key Revenue Drivers Revenue per Inpatient (EGP) Revenue per Outpatient (EGP) Number of Inpatients (‘000s) Outpatient Visits (‘000s) 30% 11% 5,698 49.9 50 574 542.9 4,393 266 240 47.2 478.4 2015 2016 2017 2015 2016 2017 2016 2017 2016 2017 Number of ER Visits (‘000s) Number of Surgeries (‘000s) Reven
Slide 13: Key Revenue Drivers (Cont'd)
Key Revenue Drivers (Cont’d) Average Revenue per Bed (EGP mn) Cleopatra CSH 3.0 1.2 30% 32% 2.3 0.9 2016 2017 2016 2017 NBH ASH 1.6 1.4 33% 29% 1.1 1.2 2016 2017 2016 2017 Cleopatra Investor Presentation 4Q17 13
Slide 14: Led by a Seasoned Management Team with Clear Organizational Structure
Led by a Seasoned Management Team with Clear Organizational Structure Audit Committee Board of Directors Ola Ahmed Internal Audit Manager Dr. Ahmed Ezz El Din – Chief Executive Officer Khaled Hassan – Chief Financial Officer Prof. Moharam El Badawy Mohamed Eweiss Chief Operating Officer (West Cairo)
Slide 15: Key Achievements since IPO
Key Achievements since IPO Cleopatra Investor Presentation 4Q17 15
Slide 16: Integration, Optimization of Operations
Key Group Achievements Since 2016’ IPO Integrating and Capitalizing on Infrastructure / Service Quality / Optimize Capacity Institutionalizing the Group Economies of Scale Technology Upgrade Offering and Patient Flow Standard Procurement Department Internal Audit ERP / HIS NBH and CSH Nurse Training
Slide 17: Expanding The Group's Feeder Network
Key Group Achievements Since 2016’ IPO (Cont’d) Introducing the 4 of the Hub and Spoke Network ▪ As Part of CHG’s strategy, the Group’s new polyclinic will be located in: ▪ East Cairo, and is earmarked for operations by Q2 2018 ▪ West Cairo ▪ Central Cairo ▪ First Scan Expanding The Group’s Feeder N
Slide 18: Broadening Group's Reach Through Expansion and Acquisitions
Key Group Achievements Since 2016’ IPO (Cont’d) Al Shorouk Expansion Cleopatra Expansion Broadening Group’s Reach and Expanding its Capacity Through ▪ The Group received several proposals ▪ The Group is still involved in an for the construction of Al Shorouk administrative lawsuit for rezoning the e
Slide 19: Our Forward Looking Strategy
Our Forward Looking Strategy
Slide 20: Clearly Defined Growth Strategy
Clearly Defined Growth Strategy Our growth strategy is based on six key pillars: Integrating the Enhancing Expanding Strengthening Leveraging Establish platform to utilization and hospital unified brand stronger centers of achieve higher optimizing capacities and position with excellence and efficie
Slide 21: Integrating the platform to Achieve Higher Efficiencies
Integrating the platform to Achieve Higher Efficiencies Institutionalizing Attracting Upgrading Centralized Comprehensive Group Insurance & Equipment and Procurement Service Platform Management Corporate Clients Facilities Cleopatra Investor Presentation 4Q17 21
Slide 22: Enhancing Utilization and Optimizing Existing Capacity
Enhancing Utilization and Optimizing Existing Capacity 2017 CAPEX Plan (EGP mn) Optimization of Existing Space and Services Medical Civil IT PolyClinic 140 • Enhancing efficiency of underperforming assets 14 through proper management and targeted 21 investments, with Cleopatra itself showing potenti
Slide 23: Expanding the Group's Feeder Network
Expanding the Group’s Feeder Network Expand patient access through ambulatory outpatient center offering Market opportunity Ambulatory Clinics are a relatively underdeveloped but high-margin offering in Egypt, with significant expansion avenues Objective This acts as the hub hospital(s), to These po
Slide 24: Strengthening Unified Brand
Strengthening Unified Brand Creating an Umbrella Brand Synonymous with Quality Patient Care Phase I – Corporate Positioning Phase II – Promoting Umbrella Brand Unified Group Brand Identity ✓ Upgrade equipment / standardize quality of ✓ Creating the Group’s brand identity all services across the Grou
Slide 25: Leveraging Stronger Position with Insurance and Contract Clients
Leveraging Stronger Position with Insurance and Contract Clients MetLife Insurance Pricing Classification MetLife Gold Card MetLife Silver Card MetLife Green Card MetLife Orange Card • Hospitals included • 2nd tier hospitals • 3rd tier hospitals • Cheapest insurance solely in this group are included
Slide 26: Establish Centers of Excellence (CoEs) to drive higher margins
Establish Centers of Excellence (CoEs) to drive higher margins • The Group is laying the groundwork to expand its Centers of Excellence (CoEs) network, focusing on the provision of tertiary services based on each asset’s unique strengths • COEs will enable the Group to minimize capex since there wil
Slide 27: Achieve Joint Commission International (JCI) Accreditation
Achieve Joint Commission International (JCI) Accreditation The quality council is in charge of creating a unified quality policies and procedures structure, tailored to match each hospital’s characteristics; reviewing policies and procedures’ implementation and preparing Key Initiatives benchmark au
Slide 28: Governance & Shareholder Information
Governance & Shareholder Information
Slide 29: CHC is Backed by an Experienced Board of Directors
CHC is Back by an Experienced Board of Directors Well Structured BoD(1) Healthcare Experts Financial and Investment Experts Dr. Mohamed Dr. Ahmed Sameh Mohsen Nabil Kamhawy General Omar Awad Dr. Tarek Zahed Lobna El Ezzeldin Founder / Previous Former Head of Ahmed Badreldin Kinawy Omar Ezz Al Arab T
Slide 30: Key Investor Information
Care Health Limited’s Key Shareholders Key Investor Information The Abraaj Group is a leading investor operating in the growth markets of Asia, Africa, Latin America and the Middle East, currently manages c. US$ 9.5 billion across 20 sector and country-specific funds DEG, the German Investment and D
Slide 31: Appendix I: Financial Statements & Management Commentary
Appendix I: Financial Statements & Management Commentary
Slide 32: Consolidated Income Statement
Consolidated Income Statement Year – on - Year All figures in EGP mn 4Q16 4Q17 change FY16 FY17 change Revenues 237.9 309.6 30% 864.4 1126.8 30% Cost of sales (173.3) (215.5) 24% (612.9) (788.2) 29% Gross profit 64.5 94.1 46% 251.6 338.6 35% Gross Profit Margin 27% 30% 29% 30% G&A Expenses (24.0) (4
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet All figures in EGP mn 31 December 2016 31 December 2017 All figures in EGP mn 31 December 2016 31 December 2017 Non-current liabilities Non-current assets Long term debt 326.0 276.3 Fixed assets 396.7 472.5 Share Base Payment - 24.8 Intangible assets 246.4 241.0 Deferred t
Slide 34: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement 31 December 31 December All figures in EGP mn 31 December 2017 All figures in EGP mn 31 December 2017 2016 2016 Cont’d Cash flow from operating activities: Change in trade and other payables 47.2 47.0 Profit before tax 119.9 155.4 Net cash flow from operating activit
Slide 35: Appendix II: Management Bios
Appendix II: Management Bios
Slide 36: Management Biographies - 1/3
Management Biographies - 1/3 1. Dr. Ahmed Ezz El-Din, Group Chief Executive Officer Dr. Ahmed Ezz El-Din brings over 35 years of healthcare experience to the group and a deep insight into healthcare businesses in Egypt. Prior to assuming his role as the Group’s CEO, Dr. Ezz El-Din was the Director o
Slide 37: Management Biographies - 2/3
Management Biographies - 2/3 6. Dr. Khaled El-Noury, Nile Badrawi Hospital (NBH) Managing Director Dr. Khaled El-Noury joined the Group in 2015 and assumed the roles of NBH’s Managing Director and the Group’s Quality Director. He brings over 35 years of experience having previously held the position
Slide 38: Management Biographies - 3/3
Management Biographies - 3/3 11. Dr. Sherif Abd El-Fattah, Supply Chain Director Dr. Sherif Abd El-Fattah has over 20 years of hands-on experience in supply chain management and operations management in the medical field, having previously held positions including Supply Chain Director, Deputy Gener
Slide 39: Thank you
Thank you INVESTOR RELATIONS DIRECTOR SHAREHOLDER INFORMATION Hoda Yehia Telephone: +202 26340115 EGX: CLHO.CA E-mail: hoda.yehia@cleohc.com Listed: June 2016 investors.cleopatrahospitals.com Shares Outstanding: 1.6 billion
Cleopatra Hospital Company — FY2017 Earnings Presentation on 6ix