1H2019 Results Presentation Sep September 2019 2019
Agenda: • 1H2019 Results • Growth Strategies • Expanding Customer Reach • “ Wayak ” Investment • Al Borg Scan Updates • Nigeria Updates Today’s Presenters Dr Dr. . Hend El El She Sherbini Omar Bedewy She Sherif El El Gha hamrawi Chi hief Ex Exec ecutive Chi hief Fin Financial al Investor Rela elations s Offic ficer Offic ficer Dir Director 2 INTEGRATED DIAGNOSTICS HOLDINGS
Results Snapshot Strong top-line growth reaching 23% with good gross profit margin and EBITDA profitability Revenue Split EGP 1,061 mn EGP 498 mn Revenue in 1H 2019 Gross Profit in 1H 2019 ▲ 23% y-o-y ▲ 19% y-o-y / 47% margin IDH revenue by geography IDH revenue by type (1H2019) (1H2019) EGP 440 mn EGP 216 mn EBITDA in 1H 2019 Net Profit in 1H 2019 ▲ 34% y-o-y / 42% margin ▲ 1% y-o-y / 20% margin 1.4% 11.4% 1.3% 39.0% EGP 68 424 Operational branch labs in 1H 2019 Average revenue per test in 1H 2019 61.0% ▼ 1% y-o-y ▲ 19 branches 85.9% 15.6 mn 3.7 mn Walk-in Corporate Egypt Sudan Jordan Nigeria Tests completed in 1H 2019 Patients served in 1H 2019 ▲ 24% y-o-y ▲ 14% y-o-y 3 INTEGRATED DIAGNOSTICS HOLDINGS
Revenue Growth Drivers Revenue growth in 1H2019 was driven by higher patient and test volumes Revenue Growth Dr Drivers s | | EGP mn mn, % +23% 143 47 7 1,061 6 866 (4) (4) 1% 5% 1% -0.5% -0.4% 17% 1H20 2018 8 Re Rev Egypt pt witho hout BG- G-Scan an BG-Scan an 100 00M Ca Camp. Jo Jorda dan Sud udan an Nige geria 1H20 2019 9 Re Rev Revenue growth in 1H2019 was primarily driven by strong g Growth was as mor ore volume-driven on account of contributions op operational pe performance in in Egyp Egypt, with ith an an inc increas asing from the 100 Million Healthy Lives campaign contribution fr from Al Al Bor Borg Sc Scan Contributions from Sud Sudan and and Nig igeria wer ere ne negatively affected Management expects revenue growth to revert bac back to o be being by currencies s translation bo both volume and and pr price-driven in in 2H 2H20 2019 as as the awar areness s cam ampaign in in Egyp Egypt com omes s to o an an end 4 INTEGRATED DIAGNOSTICS HOLDINGS
Segment Performance Revenue mix skewed toward the contract segment due to higher campaign-related volumes Contr tract Se Segment Walk-In Se Segment Tota otal 1H2018 2018 1H2019 2019 Chan ange 1H2018 2018 1H2019 2019 Chan ange 1H2018 2018 1H2019 2019 Chan ange Revenue (EGP ‘000) 506,021 647,050 28% 359,832 413,914 15% 865,853 1,060,964 23% % of Revenu enue 58% 61% 42% 39% 100% 100% Patien ents s ('00 000) 0) 2,292 2,716 18% 932 961 3% 3,225 3,677 14% % of Patient ents 71% 74% 29% 26% 100% 100% Revenu enue per Patient ent (EGP) P) 221 238 8% 386 431 12% 269 289 7% Test ests s ('000 '000) 9,502 12,440 31% 3,083 3,175 3% 12,585 15,615 24% % of Test sts 76% 80% 24% 20% 100% 100% Revenu enue per Test st (EGP) P) 53 52 -2% 117 130 12% 69 68 -1% Test est per Patient ent 4.1 4.6 11% 3.3 3.3 - 3.9 4.2 9% EGP 52 EGP 647 mn EGP 130 12.4 mn 3.2 mn EGP 414 mn Avg. rev / contract test in Contract revenue in Avg. rev / walk-in test in Contract tests in 1H2019 Walk-in tests in 1H2019 Walk-in revenue in 1H2019 1H2019 1H2019 1H2019 ▲ 31% y-o-y ▲ 3% y-o-y ▲ 15% y-o-y / 39% cont. ▼ 2% y-o-y ▲ 28% y-o-y / 61% cont. ▲ 12% y-o-y 5 INTEGRATED DIAGNOSTICS HOLDINGS
A Focus on the 100 Million Healthy Lives Campaign The campaign was launched in November 2018 and ended in April 2019, and has directly benefited our business by increasing awareness and driving up our tests per patient ratio IDH 1H2019 Patient Volumes | ‘000 IDH 1H2019 Tests per Patient | ‘000 +14% +9% 3,677 Increased awareness 4.2 3,225 224 The awareness about the importance campaign add added 22 224 4 of diagnostic testing 10.9 thousand pa patients s to o 3,453 +7% sign signifi ficantly boo boosted 3.9 IDH’s contract segment the Group’s average in 1H2019 -2% 3.8 tes ests s pe per pa patient 1H2018 1H2019 1H2018 1H2019 Patients Campaign Patients Test / Patient Campaign Diiferential IDH DH 1H2019 Av Average Rev Revenue per per Test | | EG EGP IDH DH 1H2019 Rev Revenues | | EG EGP mn mn Average revenue per -1% +23% test decreased 1% due 1,061 to the campaign’s The awareness 68 68 866 866 47 lower pricing of EGP 69 69 campaign con ontributed 19 19 per test. Fac actoring EGP 47 million to IDH’s +17% out the cam ou ampai aign, top-line in 1H2019, 1,014 77 +12% blended average ble accelerating revenue revenue pe per tes est wou ould gr growth by c. c.6% 6%. 1H2018 1H2019 1H2018 1H2019 increas inc ase 12 12% in Revenue / Test Campaign Differential Revenue Campaign Revenue 1H2019 6 INTEGRATED DIAGNOSTICS HOLDINGS
A Ramp-up of Operations at Al Borg Scan Al Al Borg Sca Scan Revenue & & EB EBITD TDA Progressi sion | | EGP GP mn mn 1.18 1.13 1.08 0.94 0.90 0.84 0.80 0.70 0.34 0.17 0.14 0.15 0.16 -0.01 0.12 -0.53 -0.82 -0.93 Revenue EBITDA -1.89 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 EGP 6 mn 11 k EGP 547 EGP 0.7 mn Revenue in 1H2019 Tests in 1H2019 Revenue / Test in 1H2019 EBITDA in 1H2019 Continued ramp up of operations at Al-Borg Scan, with the radiology unit delivering steady gr growth in in revenues s and and a a pos positive EBI EBITDA of of EGP 0.7 .7 mill illion year-to to-date. 7 INTEGRATED DIAGNOSTICS HOLDINGS
Regional Performance Strong organic growth in Egypt and strengthening profitability in Jordan and Sudan Revenues | EGP P mn mn EBITDA* | EGP mn mn / % +27% +30% EGYP YPT St Strong or organic gr growth in in Egyp Egypt and growing contribution from Al Borg 911 11 85.9% 411 11 715 15 EGP 911 911 mn mn 316 16 Scan 44% 45% 372 372 Branches 1H2018 1H2019 1H2018 1H2019 +6% +125% JORD RDAN Strengthening pr St profitability in in Jordan due to raw material cost 44 44 20 20 11.4% EGP 121 121 mn mn optimization 121 21 114 14 17% 36% 19 Branches 19 1H2018 1H2019 1H2018 1H2019 -21% +526% SU SUDAN Sudan de Sud delivered 38 38% y-o-y pr price- 19 19 dr driven gr growth in in SDG SDG terms; 1.4% 3 15 15 EGP 15 15 mn profitability improved due to 0.5 20% 21 Br Branches reduced staff costs 2% 1H2018 1H2019 1H2018 1H2019 -22% -163% Nig igeria Revenue in in NGN-terms s de declined 5% 5% due to closure of loss-making -39% -132% 1.3% 17 17 branches and relocation of others. EGP 13 13 mn -7 13 13 -18 18 In EGP terms, revenues declined 12 12 Branches 22% due FX translation differences 1H2018 1H2019 1H2018 1H2019 * 2019 figures include IFRS 16 effect SDG = 0.3687 EGP, JOD = 24.14 EGP, and NGN = 0.0476 EGP 8 INTEGRATED DIAGNOSTICS HOLDINGS
Sudan Delivers Price-driven Growth in SDG terms Sud Sudan 1H 1H20 2019 19 Revenues s Bridge| SDG SDG mn mn +38% 16 -5 41 41 30 30 -16% 54% 1H20 H2018 Volu olume Pric ice 1H 1H2019 Revenues Revenues increased 38% y-o-y owing to the significant prices increase. Gross s pr profi fit Gross profit margin increased by 1.9% reaching 35.8% due to a significant decrease in salaries as a percentage of revenues. EBI EBITDA EBITDA margin grew by 8.6% owing to the revenue growth covering the relatively fixed operating costs. 9 INTEGRATED DIAGNOSTICS HOLDINGS
Strong Group Profitability Cost-cutting initiatives and increased operational efficiency helped deliver strong Group profitability IDH DH COGS Breakdown | | EG EGP mn mn / % of of Re Revenue IDH DH SG SG&A Breakdown | | EG EGP mn mn / % of of Re Revenue +26% +12% IDH ’ s con onsolidated IDH’s revenue gr growth 447 447 563 563 120 120 134 134 9.4% 4% 3.8% 8% COGS gr grew 26 26% % y-o-y, overshadowed the 12% 12% 11.2% 4.1% 1% with savings on IFRS 16 increas in ase in in SG&A SG&A costs, 6.3% 3% 3.7% 7% 1.5% 0.7% related rent offset by with total SG SG&A/sa sales s 17.7% 2.7% 7% 17.4% 2.5% an increase in direct declining to 12.6% 12.6% 5.9% 9% 5.4% 4% 19.3% 19.6% depreciation and versus 13.9% in amortization. 1H2018. 1H2018 1H2019 1H2018 1H2019 Raw Material Salaries Depreciation Others Salaries Sales & Marketing Consul. Fees Others IDH DH Co Consolidated Gross Prof ofit | | EG EGP mn mn / % IDH DH Co Consolidated EBI EBITDA | | EG EGP mn mn +19% +34% EBITDA growth of 34% was driven by a 19% Gross profit margin 440 440 498 498 increase in GP against rec ecorded a a strong g 47 47% % a 12% increase in 329 329 despite the lower 419 419 SG&A. EBI EBITDA mar argin contribution margin of rec ecorded a a statutory campaign-related 42% 42% 47% 47% 38% 38% 42 42%, , whil hile no normalizing contract tests. 48% 48% for or IFR FRS S 16 16 lea leads s to o a a 39% mar 39 argin. 1H2018 1H2019 1H2018 1H2019 10 10 INTEGRATED DIAGNOSTICS HOLDINGS
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