Euroeyes International Eye Clinic Limited · HKEX:1846
Euroeyes International Eye Clinic — FY2020 Earnings Presentation
28 slides from Euroeyes International Eye Clinic's earnings presentation, 2021
Slide 1: 2020 Annual Results Presentation
EuroEyes International Eye Clinic Limited 2020 Annual Results Presentation
Slide 2: Disclaimer
Disclaimer This presentation is for reference purposes only. This presentation is prepared by EuroEyes International Eye Clinic Limited (“EuroEyes” or “the Group”) for business communications and general reference of the Group and shall not constitute in whole or in part any offer to purchase or sub
Slide 3: 2020 Company Performance Overview
2020 Company Performance Overview 3
Slide 4: Full Year 2020 Overview
Full Year 2020 Overview Total Revenue Adjusted Gross Profit Adjusted Net Profit After Tax 10.3% YoY 18.3% YoY 40.4% YoY HK$ 473,818,000 HK$ 214,100,000 HK$ 70,614,000 + HK$ 44,126,000 + HK$ 33,141,000 + HK$ 20,331,000 45.2% Margin 14.9% Margin Industry reports estimate a decline of 21% in total refr
Slide 5: Factors for Strong Performance
Strong Performance despite COVID-19 Pandemic Factors for Strong Performance People in home office People are cash People wearing People in Video- have lots of spare rich because they masks complain of conferences stare at time are not able to go foggy glasses their own face on holidays 55
Slide 6: Group Revenue Development
Group Revenue Development 151.415 +20,7% 125.424 121.514 +17,3% 103.630 98.944 100.593 97.609 94.795 2019/Q1 2019/Q2 2019/Q3 2019/Q4 2020/Q1 2020/Q2 2020/Q3 2020/Q4 (refractive surgery procedures, in thousands of HKD) 6
Slide 7: Revenue country-by-country
Revenue country-by-country Revenue in Germany Revenue in the PRC Revenue in Denmark HK$304,788,000 HK$108,114,000 HK$60,916,000 +14.9% YoY -4.7% YoY +19.5% YoY 175.324 129.464 71.694 +29,7% YoY 37.967 -0,4% YoY 36.420 +17,8% YoY 22.949 +39,0% -30,7% YoY YoY -3,0% YoY 2020 1H 2020 2H 2020 1H 2020 2H
Slide 8: Capacity Utilization Rate
Capacity Utilization Rate 21,640 23.2% Surgeries Utilization 24.3% 21.3% Revenue HK$ 473,818,000 21.4% Adj.Gross Profit Margin Adj.Net Profit Margin 45.2% 14.9% EuroEyes capacity utilization rate measures the proportion of potential surgery capacity that is actually realized 8
Slide 9: The "New Normal" for 2021!
The “New Normal” for 2021! 100,0% 151.415 35.170 28,7% 23,2% +5,5 %-points Net Margin Revenue Net Profit Utilization Rate Q4 Q4 Q4 Full year 70,614 (in thousands of HKD) 14,9% 9
Slide 10: Profitability of EuroEyes Compared to its Peers
Profitability of EuroEyes Compared to its Peers Comparison of Profitability Between Different Eye Clinics in Asia and EuroEyes – Profit Before Tax Margin 22,2% 19,9% 18,0% 17,5% Market 16,4% Median Average 12,5% 10,5% 9,9% EuroEyes 8,9% 2016 2017 2018 2019 2020 Other Eye Clinics 2016 2017 2018 2019
Slide 11: EuroEyes is Confident of Broadening its Scope of Services
EuroEyes is Confident of Broadening its Scope of Services Mergers & Acquisition Priorities Organic Growth ▪ Acquisition of refractive eye clinics in Europe ▪ 2 new eye consultation centres in Germany ▪ Acquisition of German Eye Hospitals to broaden our ▪ 2 new eye clinics in PRC (2021/2022) scope of
Slide 12: 2020 Business Strategies & Highlights
2020 Business Strategies & Highlights 12
Slide 13: Germany – Record Level of Consultation Bookings
Germany – Record Level of Consultation Bookings Consultation No. 1,240 February 2021 Every month we exceeded our prior year consultation bookings 1 13
Slide 14: Germany – Record Level of Consultation Bookings
Germany – Record Level of Consultation Bookings 1.240 2021 2020 2019 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 14
Slide 15: Denmark - New Danish Flagship Clinic in Copenhagen
Denmark - 2021: New Danish Flagship Clinic in Copenhagen “Olympic” Stadium Revenue in Denmark 60.916 +28,5% 50.977 36.880 2018 2019 2020 (in thousands of HKD) 15
Slide 16: PRC - Multichannel Cooperation to Increase Brand Awareness
PRC - Multichannel Cooperation to Increase Brand Awareness / Patient Source Cooperation Detail • Trial stage cooperation - EuroEyes will provide medical experts to assist iKang Healthcare Group expand scope of examination in the area of ophthalmology. Customers will have the chance to enjoy a more i
Slide 17: PRC – Chongqing Clinic Opening in April 2021
PRC – Chongqing Clinic Opening in April 2021 Chongqing Clinic Located at Middle-high End Residential Area 17
Slide 18: Chongqing Clinic Timeline
PRC – Chonggqing Clinic Opening in April 2021 Chongqing Clinic Timeline Construction work commenced Construction work resumed Construction work completed Medical license First Surgery – local COVID-19 restrictions granted lifted 1 2 3 4 5 Local COVID-19 Pandemic restriction All construction work pau
Slide 19: 2020 Financial Overview
EUroEyes 2020 Financial Overview 19
Slide 20: Full Year 2020 Overview
Full Year 2020 Overview Key Financial Data in 2020 Adjusted Net Profit Margin (in %) For the year ended 23,2% 2020 2019 YoY Change HKD‘000 HKD‘000 % Revenue 473,818 429,692 10.3 Cost of Sales (259,718) (251,971) 3.1 14,9% Gross Profit 214,100 177,721 20.5 11,7% Gross Profit Margin (%) 45.2% 41.4% 3.
Slide 21: Earnings Performance by Geographical Regions and Types of Surgery
Earnings Performance by Geographical Regions and Types of Surgery Revenue by Geographical Regions Revenue by Type of surgery The Year ended 31 December The Year ended 31 December 2020 2019 YoY Change 2020 2019 YoY Change HKD’000 HKD’000 % HKD’000 HKD’000 % Total 473,818 429,692 10.3% Surgery Revenue
Slide 22: Numbers of Surgery and Average Fee per Surgery
Numbers of Surgery and Average Fee per Surgery Highlights of FY2020 10.3% Stable Profitable Surgery increase in number of ICL and lens YoY increase in total surgery performed average price of surgery exchange surgery improves gross profit margin Number of Surgery Average Fee per Eye (in HKD) Refract
Slide 23: Cost of Sales Development
Cost of Sales Development Cost of Sales by Nature Adjusted Gross Profit and Gross Profit Margin (in thousands of HKD) (in thousand of HKD) +3,1% 259.718 45,2% 251.971 25,9% 42,1% Others 32.355 -3,0% 31.385 CAGR 40,5% 214.100 35,4% +18,3% 54.526 180.959 Depreciation 55.119 -1,1% 32,6% 161.100 Raw Mat
Slide 24: Selling Expenses
Selling Expenses Sales Expense Ratio Main Factors 25,4% Germany and PRC ▪ Optimized patient aquisition process ▪ Effective marketing strategy 18,3% 18,1% PRC ▪ Reinforced word of mouth by continuously improving 15,6% patient experience 13,7% 13,7% Group 12,1% 12,0% Denmark 10,5% Germany 9,5% Denmark
Slide 25: Adjusted Net Profit after Tax
Adjusted Net Profit after Tax The Year ended 31 December (in thousand of HKD) 14,9% 12,8% 70.614 11,7% +40,4% 43,5% 50.885 50.283 CAGR 6,4% 6,7% 21.888 16.643 2016 2017 2018 2019 2020 Net Net Profit After Tax Margin 25
Slide 26: Key Take-aways
Key Take-aways Total Revenue Fully Year Adj. Net Profit After Tax Q4 Adj. Net Profit After Tax Q4 Utilization Rate +10,3% +40,4% HK$ 35 mil 28,7% HK$ 474 mil HK$ 71 mil Industry reports estimate a decline of 21% in total refractive industry 14.9% Margin 23.2% Margin procedures in 2020 as compared to
Slide 27: Thank You For Your Attention!
Thank You For Your Attention! 27
Slide 28: Non-IFRS Adjustments
Non-IFRS Adjustments The Year ended 31 December 2020 2019 2018 2017 2016 HK$‘000 HK$‘000 HK$‘000 HK$‘000 HK$‘000 Revenue 473,818 429,692 397,394 325,956 260,943 Reported gross profit 214,100 177,721 161,100 115,733 85,119 Adjustment – pre-operating expenses - 3.238 - - - Adjusted gross profit 214,10
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