Institutional Presentation
September 2024
Database: Jun-2024
Section I
Industry Overview
Hospital São Luiz Campinas - São Paulo
Healthcare Industry Evolving on the Back of
Structural Demographic Fundamentals
1 | Economic structure of healthcare |
market in Brazil… | |
2 | …combined with solid |
demographic fundamentals… | |
Average annual rate of population change (%)
3 ...and a faster population aging
- years for population cohort of +65 years to growth of 7% to 14%
Public
POPULATION COVERAGE(1)
~74%
residents
SPENDING(2)
R$399 BLN
3.7% GDP
(41% of
spending)
PAYERS |
Government |
Individuals |
0.5
0.5
0.3
0.2
(2011-2032)
(2000-2026)(1970-1996)
(1947-1992)
21 | +21M |
people with +65 years | |
26in the next 20 years
26 | 40M |
45 | |
total population with |
R$578 BLN
0.0
(1930-1975)
45
+65 years in 2040
Private
~26%
5.3% GDP
(59% of
spending)
Health |
Plans |
-0.1
-0.2
-0.5
(1944-2009)
(1994-2013)
(1938-2011)(1890-1975)
65
69
73
85
Rede D'Or's target market
+20M people
in the next 20 years
(1865-1980)
115
Notes: (1) ANS, December 2023; (2) "Observatório ANAHP 2024". | 4 |
Source: United Nations World Population Prospects 2022. |
Underpenetrated Market in Terms of Beds, with Predominance of Small Players
1 Hospital Beds Density
Bed Density (Beds/ #'000)
13.0
2 Growing deficit in private beds(1)
Bed Density in Brazil (# Beds)
Brazil has a deficit of
+14 thousand
private beds
3 | Hospitals Overview in Brazil(2) | |
59 | ✓ Small | |
✓ Limited | ||
beds in | infrastructure |
avg. | Brazilian Hospital Average Size (# beds) |
4,827
(# Private hospitals in Brazil)
8.0 | WHO Recommendation |
(3-5 beds)
5.9
5.0
4.3
3.1 2.9 2.5 2.1 2.0 1.6 1.0
31,581
25,131
14,246
2019⁽¹⁾ 20242029
4,466 | |
-361 | |
2010 | 2022 |
Inflection point: Brazil's total beneficiaries grew to 50.9M in 2023.
Notes: (1) Considers beneficiaries growing from 47M to 57M in 2030 and constant occupancy rate and average length of stay; (2) As of January 2022; considers total beds divided by number of hospitals | 5 |
registered in ANS. |
Source: CNES, CIA factbook and FBH
Section II
Rede D'Or
at a Glance
Hospital Maternidade São Luiz Star - São Paulo
How Do We Stand Out?
1
2
3
4
5
6
Unique Value Proposition Based on Sustainable Growth
Largest Private Healthcare Network in the Country
Quality Excellence and Brand Recognition
Technology Based Platform
Continuous Progress on ESG Initiatives
Solid Financial and Operational Indicators
Our Unique Value Proposition
Attracts | Brand |
proficient | recognition |
doctors and | and patient |
professionals | preference |
Physicians | Quality |
Must have network | Comprehensive |
Hospital Network | |
amongst payors | |
universe |
Flywheel of | |||
Relevance | Sustainable | Scale | |
Growth | |||
Extract the | Investment | ||
right margin and | in people, | ||
operational | research and | ||
leverage | technology | ||
Performance | Technology |
8
Largest Healthcare Network in Brazil
HOSPITALS | INSURANCE | ONCOLOGY | DIAGNOSTICS | EDUCATION & | COMPLEMENTARY |
RESEARCH (IDOR) | |||||
Brazil's largest(1) | One of the largest | Oncology services | 3rd largest(3) | Scientific | Stake in Qualicorp |
independent private | insurer in the | fully integrated | diagnostic player in | collaborations with | S.A. (25.85%) |
hospital chain | country | with hospital chain | Brazil | +80 countries | Largest Blood Bank |
Reference in | Distribution model | Leadership(2) | Launched in 1977 | +60 medical | in Brazil acquired in |
quality and | multi-channel and | position | and re-entry in 2018 | residency programs | 2017 (42.4% stake) |
standards | nation wide | Launched in 2011 | Private medical | +Dialysis | |
Largest robotic | 128 years | education plan | +Distribution | ||
park in Brazil | of history | under development | +Materials/ | ||
medicine | |||||
Launched in 1998 | +Nephrology | ||||
+Complex | |||||
transplants |
Notes:
(1) Based on the numbers of beds as of Dec-23;Source: Rede D'Or São Luiz, ANAHP, CNES and Companies IR 9(2) In terms of 2020FY EBITDA, including infusions and oncological surgeries. Private players EBITDA as of 2020;
(3) Considering 2020FY Adjusted EBITDA for all listed players.
M&A Opportunity
Main | RDSL | RDSL | Market | Beneficiar | |
State | Mkt. | ies | |||
Brands | hospitals | size | |||
share(1) | (dec-23) | ||||
21 | 13% | ~27k | 5.7 | |
RJ | Private | |||
million | ||||
beds | ||||
SP | 26 | ~80k | 18.1 | |
5% | Private | |||
million | ||||
beds | ||||
PE | 4 | 7% | ~13k | 1.4 |
Private | ||||
million | ||||
beds | ||||
DF | 4 | 9% | ~6k | 0.9 |
Private | ||||
million | ||||
beds | ||||
BA | 5 | ~16k | 1.7 | |
6% | Private | |||
million | ||||
beds | ||||
MS | 2 | ~5k | 0.7 | |
4% | Private | |||
million | ||||
beds | ||||
Source: ANS, data base December 31, 2023.
(1) Market share is based in the total number of beds according to DATASUS.
Main | Number | RDSL | Market | Beneficiar | |
State | of | Mkt. | ies | ||
Brands | Size | ||||
hospitals | share(1) | (dec-23) | |||
SE | 1 | 10% | ~2k | 0.3 |
Private | ||||
million | ||||
beds | ||||
PR | 1 | ~23k | 3.1 | |
1% | Private | |||
million | ||||
beds | ||||
MA | 1 | 4% | ~4k | 0.5 |
Private | ||||
million | ||||
beds | ||||
CE | 1 | 1% | ~10k | 1.4 |
Private | ||||
million | ||||
beds | ||||
1 | ~38k | 5.7 | ||
MG | 1% | Private | ||
million | ||||
beds | ||||
2 | ~4k | 0.5 | ||
PB | 6% | Private | ||
million | ||||
beds | ||||
1 | ~4k | 0.4 | ||
AL | 4% | Private | ||
million | ||||
beds | ||||
10
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