30 slides from Mlp Saglik Hizmetleri As Class B's earnings presentation, Mar 6, 2020
Slide 1: MLP Care 2019 Presentation
MLP Care 2019 Presentation 6 March 2020
Slide 2: Forward Looking Statements
Forward Looking Statements 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 ava
Slide 3: Muharrem Usta, Chairman & CEO
Muharrem Usta Chairman & CEO 3
Slide 4: At a Glance: MLP Care FY 2019 Financial Highlights
At a Glance: MLP Care FY 2019 Financial Highlights Adj. EBITDA1 Revenue TL 3,7 billion TL 560 million 18% Growth 33% Growth Strong revenue growth driven by both domestic and international operations. Strong improvement in EBITDA Net Debt / EBITDA margin on the back of effective FCF cost manageme
Slide 5: At a Glance: MLP Care Operational Highlights
At a Glance: MLP Care Operational Highlights Two brands and one concept targeting three different price points The largest hospital group in 29 (2019) Hospitals in Total with consistently outstanding medical Turkey service quality. 20,000+ Staff 1 ~6,000 Beds in Total 2,200+ Doctors (1/3 are academi
Slide 6: Clearly Defined Growth Strategy
Clearly Defined Growth Strategy 1 Optimizing existing capacity 2 Revenue diversification 3 Greenfield and M&A opportunities Increase efficiency of the business 4 through digitalization 6
Slide 7: Revenue Diversification Through Growing Segments
Revenue Diversification Through Growing Segments 2016 2019 6% 6% 5% 32% 8% 4% 16% 39% 12% 26% 34% 39% 23% 32% 18% SSI Self-pay PMI, Top-up & Medical Tourism Other Contr. Inst. Revenue from PMI, Top-up & Contracted Institutions grew by 39% in 2019 Medical Tourism grew by 32% in 2019 SSI Insuran
Slide 8: Medical Tourism Revenue Up 32% in 2019
Medical Tourism Revenue Up 32% in 2019 Medical Tourism Revenue (TLm) Diversified and Balanced Geography. Patients 500 comes from: 20.1% 450 11.7% 400 66 35% 30% Europe 350 39 300 Middle East and Africa 250 435 330 31.8% 35% Former CIS and the Rest 200 150 Strong marketing through offices / affil
Slide 9: # of People with Top-up Insurance Exceeds 1.3 million
# of People with Top-up Insurance Exceeds 1.3 million # of People with Insurance (PMI and Top-up) in Turkey – 000s Growth CAGR (2014-2019) (2018-2019) 3,705 3,705 4000,0 2,214 10.8% 3,144 17.8% 3500,0 3000,0 1,354 1,354 2500,0 64 84.0% 920 47.2% 2000,0 1500,0 1.8% 2,350 2,350 5.7% 1000,0 2,150 2,224
Slide 10: A network of hospitals located strategically across Istanbul
A network of hospitals located strategically across Istanbul VM Medical Park Maltepe Map of Istanbul Location: Maltepe / Istanbul Opening Date: December 2019 Key Statistics 20k sqm 125 bed capacity 60 policlinic rooms 7 operating rooms Hospitals with Medical Park Brand Hospitals with Liv Hos
Slide 11: Planned M&A in 2020
Planned M&A in 2020 # of Hospitals Liv Hospital Gaziantep Liv Hospital İstanbul 2 4 25 Medical Park Liv Hospital 2020 additions Liv Hospital Location Gaziantep İstanbul Opening Date ~ Q2 2020 ~ Q4 2020 Key Statistics 40k sqm ~ 50k sqm ~ 230 bed capacity 70 policlinic rooms 8 operat
Slide 12: Increase efficiency of the business through digitalization
Increase efficiency of the business through digitalization Centralisation of HR – Recruitment and Procurement (E-tender) Talent Management Digitilization of Digital Agreements invoicing/collection
Slide 13: Burcu Öztürk, CFO
MLPCARE Burcu Oztiirk CFO 13
Slide 14: Revenue Up 18% in 2019
Revenue Up 18% in 2019 Revenue (TLm) 19.9% 18.3% 4000 13.8% 4,129 3,444 3,704 3000 12.2% 3,132 2000 1000 976 1,111 880 988 0 Q4 2018 Q4 2019 2018 2019 Revenue Including Managed Hospitals: Revenues of Florya, ISU Gaziosmanpaşa and ISU Bahçeşehir were included Denotes growth of Revenue vs. the same pe
Slide 15: EBITDA Up 33% in 2019
EBITDA Up 33% in 2019 EBITDA (TLm) 1 27.5% 900 800 32.8% 15.5% 834 700 814 14.8% 722 600 638 45.0% 500 579 505 560 400 10.3% 421 300 200 152 168 100 108 157 0 Q4 2018 Q4 2019 2018 2019 2018 2019 (IFRS 16) (IFRS 16) 1 Adj. EBITDA: EBITDA TFRS adjustments that have no cash impact on relevant period an
Slide 16: Strong Revenue Growth in 2019
Strong Revenue Growth in 2019 Domestic Patient Medical Tourism Ancillary Business Revenues Revenues 19.5% 37.5% 5.9% 20.9% 17.9% 7.7% 31.8% (29.8%) (0.5%) 435 306 20.2% 2,96 2 815 105 67 Q4 2019 2019 Q4 2019 2019 Q4 2019 2019 Growth Continued in Q4 2019 Continued to Attract Foreign Strong Growth in
Slide 17: Strong Improvement in Both ARPV and ARPP in 2019
Strong Improvement in Both ARPV and ARPP in 2019 Outpatient and Inpatient revenues made up 41% and 59% of total Domestic Hospital Business Revenues in 2019. Outpatient Revenues (TLm) Inpatient Revenues (TLm) 19.9% 16.6% 17.2% 11.8% 2.7% 4.8% 175 27 177 1,215 72 1,747 1,013 1,499 2018 Volume & Mix
Slide 18: Smart Cost Management Results in Profitability Growth
Smart Cost Management Results in Profitability Growth Cost of Service and G&A Expenses as a % of Material costs as a % of revenue Revenues declined in 2019 due to cost Adj. EBITDA Margin 16.1% 15.6% controls and efficiency initiatives Doctor costs as a % of revenue 7,4% 9,5% declined due to incr
Slide 19: Continued to Deleverage Balance Sheet in 2019
Continued to Deleverage Balance Sheet in 2019 NET DEBT FX BASED NET DEBT (in EUR m) 2019 1 100,0 250,0 90,0 204 80,0 71 200,0 70,0 65 60,0 150,0 50,0 40,0 30,0 100,0 72 65 20,0 10,0 50,0 - Net Hard 2019 FMT - Currency Debt Revenue 2017 2018 2019 (in EUR) (in EUR) Nominal TL1,465m Net Debt / Adj. EBI
Slide 20: Easing CB policy rate
Easing CB policy rate 40,00 CBT Interest Rate % 35,00 30,00 25,00 24,00 24,00 24,00 24,00 20,00 16,50 16,50 15,00 12,00 10,75 10,00 8,00 5,00 0,00 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Feb 2020 Central Bank of Turkey policy rates has positive impact on our interest costs s
Slide 21: FX Position of Income Statement – Excluding IFRS 16
FX Position of Income Statement – Excluding IFRS 16 Hard Hard Currency as % TLm 2019 (TLm) Currency of total revenues Domestic Hospital Revenue 2,962 - - Foreign Medical Tourism 435 435 12% Ancillary 306 - - Total revenues 3,704 435 12% Material (863) (86) (2%) Doctor (785) - - Personnel (649) - - R
Slide 22: Total Capex and Maintenance Capex Decreased
Total Capex and Maintenance Capex Decreased Maintenance Capex (TLm) Total Capex (TLm) Operating Cash Flow / EBITDA 80% 2.7% 9.0% 70.6% 500,0 65.7% 100 1.6% 300 450,0 80 250 282 4.7% 560 84 400,0 200 409 60 150 350,0 40 58 173 100 300,0 332 20 50 250,0 - - 200,0 2018 2019 2018 2019 2018 2019 % of Rev
Slide 23: Outlook & Prospects
Outlook & Prospects Muharrem Usta – Chairman & CEO 23
Slide 24: 2020 Financial Year Guidance
2020 Financial Year Guidance 2020 Guidance Consolidated Revenue Growth 18% Adj. EBITDA Growth 1 25% Maintenance Capex / Revenue Less than 2.0% Total Capex / Revenue Less than 5.0% Net Debt / Adj. EBITDA Less than 2.0x 1 Adj. EBITDA without foreign exchange gains/(losses) of other income/(expenses) f
Slide 25: MLP Care
CARE
Slide 26: Closing Remarks
Closing Remarks Muharrem Usta – Chairman & CEO 26
Slide 27: Thank You!
Thank You! MLP Care Investor Relations Deniz Can Yücel +90 212 227 5555 (Ext: 1148) deniz.yucel@mlpcare.com http://investor.mlpcare.com/en/
Slide 28: Historical P&L Statements
Historical P&L Statements TLm Audited Audited Audited 20191 2019 2018 Q4 20191 Q4 2019 Q4 2018 Revenue 3,704 3,704 3,132 988 988 880 Cost of service (-) (2,852) (3,053) (2,644) (754) (804) (742) Gross profit 852 651 488 234 184 138 General administration expenses (-) (309) (309) (271) (91) (91) (82)
Slide 29: Historical Balance Sheet
Historical Balance Sheet Audited Audited Audited TLm December 31, 20191 December 31, 2019 December 31, 2018 Cash and cash equivalents 306 306 223 Trade receivables 991 991 899 Inventory 90 90 80 Short term other assets 335 335 276 Current assets 1,722 1,722 1,479 Tangible and intangible fixed assets
Slide 30: Reconciliation from Reported EBITDA to Adjusted EBITDA
Reconciliation from Reported EBITDA to Adjusted EBITDA TLm 20191 2019 2018 Q4 20191 Q4 2019 Q4 2018 Net profit / (loss) 56 18 (104) 76 65 39 Tax income from operations 26 16 (59) 31 28 7 Depreciation and amortization of tangible and intangible fixed assets 266 216 192 68 55 51 Total interest expense