Capital Markets Day Presentation November 2017 Disclaimer This - - PowerPoint PPT Presentation

Capital Markets Day Presentation

November 2017

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Disclaimer

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This information contained in the Capital Markets Day Presentation has been prepared by NMC Health and was compiled from sources believed to be reliable for informational purposes

• nly.

Prospective and existing investors should make their own evaluation of the company as the information provided here does not purport to be all inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the date set forth in this information. NMC Health makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to NMC’s businesses and operations. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. Many actual events and circumstances are beyond the control of the Company.

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Agenda

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Welcome note from the CEO NMC Healthcare – Managing rapid growth

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NMC Fertility – Building a global business

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NMC Distribution – Capitalizing on synergies with Healthcare

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Q&A

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Changing lives and impacting society positively

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5

Agenda

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NMC Healthcare – Managing rapid growth Welcome note from the CEO

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NMC Fertility – Building a global business

4

NMC Distribution – Capitalizing on synergies with Healthcare

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Q&A

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Institutionalizing the business

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Focus on maintaining operational excellence

Manage relationships with regulatory agencies Oversight of healthcare

• perations

Oversee quality, safety and patient satisfaction Physician relations Oversite of financial expectations through

• versight of
• perations

Drive

• rganisation

culture Mitigate risks and potential barriers to success

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Philosophy and methodology

7 Enhancing NMC’s current leadership framework by introducing concepts acquired from extensive experience in the US and UAE

• Maintain NMC’s strong Abu Dhabi legacy

while introducing a more western approach to

• rganizational structure and decision making
• Create a corporate leadership hierarchy that

focuses on the five pillars needed for our long term success:

• Cost, quality, service, growth, and people

New management structure introduced to decentralize decision making

• Operational “clusters” created within the UAE

and broader Middle East to empower front line leadership to control their business

• Previously higher level decisions regarding HR,
• perations, and business development were

elevated to the corporate leadership

• The new structure eliminates hurdles to quick

decision making at the ground level and streamlines operations

• Committed to evaluation of existing operational

leadership across all portfolios and making changes if necessary

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New corporate structure

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CEO Prasanth Manghat CEO Prasanth Manghat COO-Healthcare Michael Davis COO-Healthcare Michael Davis COO-Distribution Nirman Shetty COO-Distribution Nirman Shetty Head of IVF Prakash Janardan Head of IVF Prakash Janardan Director Corporate Services Ravi Rai Director Corporate Services Ravi Rai CFO Prashant Shenoy CFO Prashant Shenoy CMO

• Dr. C R Shetty

CMO

• Dr. C R Shetty

CIO Hani Buttikhi CIO Hani Buttikhi

• Dy. COO

Distribution

• Dy. COO

Distribution Head of Clinica Eugin Head of Clinica Eugin Head of Fakih IVF Head of Fakih IVF Business development Business development Regional Head Abu Dhabi and Al Ain Regional Head Abu Dhabi and Al Ain Regional Head Dubai and Northern Emirates Regional Head Dubai and Northern Emirates Head Outside

• f UAE

Head Outside

• f UAE
• Dy. CFO

accounts and audit

• Dy. CFO

accounts and audit

• Dy. CFO

banking and treasury

• Dy. CFO

banking and treasury AVP corporate finance AVP corporate finance IT IT Head of Operations Abu Dhabi, Al Ain and Dubai Head of Operations Abu Dhabi, Al Ain and Dubai Head of Operations Sharjah, Oman, Kuwait and Qatar Head of Operations Sharjah, Oman, Kuwait and Qatar Head of Operations Saudi Arabia Head of Operations Saudi Arabia Head of Human Resources and Personnel Head of Human Resources and Personnel Head of Marketing and Sales Head of Marketing and Sales Head of Quality Head of Quality Head of Nursing Head of Nursing Investor Relations Investor Relations Corporate Development Corporate Development Mergers and Acquisitions Mergers and Acquisitions Note: Brand strategy and communication strategy will report functionally to CEO

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Substantial segment and geographic diversification

MULTI-SPECIALITY NETWORK 01. NMC Specialty Hospital Abu Dhabi 02. NMC Day Surgery1 Mohammed Bin Zayed City 03.

• Dr. Sunny Referral Network

Sharjah (Acquired 2015) 04. NMC Royal Hospital1 Khalifa City (Opened 2015) 05. NMC General Hospital1 Dubai Investments Park (Opened 2014) 06. B.R. Medical Suites DHCC 07. NMC General Hospital Deira, Dubai 08. NMC Specialty Hospital Dubai 09. NMC Medical Centre Sharjah 10. NMC Specialty Hospital AI Ain 11. NMC Medical Centre1 Al Ain (Opened 2014) 12. American Surgecenter Abu Dhabi 13. Al Zahra Hospital Sharjah (Acquired 2016) 14. Atlas Healthcare Muscat, Oman (Acquired 2017) 15. Najran Hospital Saudi Arabia (Acquired 2017) 16. Ha’il Hospital Saudi Arabia (Acquired 2017) MATERNITY & FERTILITY 17. Brightpoint Royal Women's Hospital1 Abu Dhabi (Opened 2014) 18. Clinica Eugin2 Spain (Acquired 2015) 19. Fakih IVF UAE (Acquired 2015) LONG-TERM & HOME CARE 20. Provita Abu Dhabi (Acquired 2015) 21. Provita Al Ain (Acquired 2015) 22. Americare Abu Dhabi (Acquired 2015) 23. As Salama Saudi Arabia (Acquired 2016) 24. Chronic Care Saudi Arabia (Acquired 2016) OPERATION & MANAGEMENT 25. Sheikh Khalifa General Hospital (Operator) Umm al Quwain 18 10 11 12 04 02 06 05 20 03 01 07 08 09 21 22 25 30 35 32 33 28 31 34 29 17 19

OMAN UNITED ARAB EMIRATES

Abu Dhabi Al Ain Dubai Sharjah Umm Al Quwain

SAUDI ARABIA

13 1. Funded from IPO proceeds 2. Also has operations in Italy, Denmark, Brazil and Columbia 14 26

YEMEN

16 15 23 24 27 35. NMC Warehouse DIC, Dubai 36. NMC Warehouse Ajman Ajman 26. Emirates Healthcare Dubai 27. Sheikh Khalifa Hospital Yemen DISTRIBUTION 28. NMC Sales and Marketing Office Abu Dhabi 29. NMC Sales and Marketing Office AI Ain 30. NMC Sales and Marketing Office Dubai and Northern Emirates 31. NMC Warehouse

• Mina. Abu Dhabi

32. NMC Warehouse AI Ain 33. NMC Warehouse DIP, Dubai 34. NMC Warehouse Al Quoz, Dubai 36

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Operational integration – Gelling the new with the old

10 Corporate & local culture Leadership & strategic vision Dedicated in-country specialists

Rapid pace of acquisitions necessitates a pro-active role to balance the differences in cultures across the various entities Well positioned to manage growth across further geographies

Operations & Management Long-term & Home Care Multi-specialty network Maternity & Fertility Distribution

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Operational integration – The next phase

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Continuing the “next phase” integration

• f newly acquired assets…

… whilst becoming the employer of choice in the healthcare sector

Integration of culture Employer of choice Back office rationalisation

• Rolling up newly acquired

assets under broader leadership to complete integration of culture

• Source out further efficiency
• pportunities
• Examples: ProVita / Americare,

Nadia Medical Centre/ Brightpoint Royal

Dr Sunny Healthcare, Sharjah New Medical Centre, Sharjah Nadia Medical Centre, Abu Dhabi Al Zahra Hospital, Sharjah Brightpoint Royal Woman’s Hospital, Abu Dhabi Americare, Abu Dhabi ProVita, Abu Dhabi & Al Ain

• Consolidation and rationalisation
• f back office functions across

the portfolio

• Examples: NMC Sharjah, Al

Zahra Hospital and Dr. Sunny Healthcare & ProVita, Americare, Emirates National Home Health

• Focus on people & culture

greater alignment with employee incentives (birthday leave and tickets home)

• Implementation of performance

management system

2016 – 2017 Top Companies to Work for in the UAE

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Operational integration – Optimizing existing assets

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CONTINUED FOCUS ON OPTIMIZATION

Back office consolidation Lab, laundry and pharmacy centralisation Sales and marketing Cross referrals Right size

• rganisation

Minimization of insurance rejection rates a key focus area Increasing accountability Firm negotiation of rates

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Operational integration – Identifying the right traits for acquisition

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How do we assess potential assets in KSA? Targeting pole position in the Omani Market

Oman private healthcare sector market share 100 beds 20% market share

 Alignment with strategic verticals in attractive market  Cultural fit with existing leadership teams and shareholders  Focus on providing solid clinical care or providing clinical services that are underserved within given geography  Track record of operational efficiency with upside potential

Knowledge and expertise gained by being

• n the ground

Investment philosophy focused on

• pportunity and relative value

Comprehensive due diligence

Rigorous but efficient evaluation and execution process

Navigating the Saudi market

 Underpenetrated market with strong demand drivers  Rebranded NMC portfolio  Clinically stable and profitable asset base from which to expand upon

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Agenda

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Welcome note from the CEO

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NMC Healthcare – Managing rapid growth

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NMC Distribution – Capitalizing on synergies with Healthcare NMC Fertility – Building a global business

3 5

Q&A

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Getting pregnant is not that easy

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Variety of causes… … with options decreasing over time

Others 45% Blockage

• f Fallopian

Tubes 15% Ovulation problems 35%

33%

Sperm

• bstruction

Low mobility Malformed sperm Low sperm count Sperm production temporarily decreased

33%

Unknown causes 14%

External causes 20%

86% 78% 63% 52% 36% 5%

0% AGE

50+ 45-49 40-44 35-39 30-34 25-29 20-24

1 6

• ut of

every

attempts results in pregnancy

Endometriosis 5%

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NMC Fertility: A globally leading, premium provider of fertility treatment

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• Competitive pricing combined with medical excellence and scientific rigor with Eugin in Europe
• Mid-to-high end positioning in LatAm combining local doctors’ reputation and Eugin/Huntington brands
• High-end positioning for a premium clientele with Fakih in the GCC

NMC Fertility platform has a differentiated positioning adapted to each of its markets

Covering a wide range of patients and offering donor cycles Specialized in Sharia-compliant treatment

NMC Fertility is the second largest player in fertility treatments globally and has a network of clinics to access patients across 3 continents Full range of fertility treatments

7 clinics in Europe 4 clinics in GCC 5 clinics in LatAm

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A global fertility platform with leading presence in core markets

Key markets Ranking #2 #1 #1 #1 #1

Market share (by # of cycles) NMC Fertility 8% 6% 11% 36% 7% Combined top 3 players 42% 11% 28% 56% 18%

Current Eugin’s presence Current Fakih’s presence

Fakih Dubai Fakih

• No. of clinics:

1 1 Fakih Abu Dhabi Fakih

• No. of clinics¹:

2 2 Eugin Spain Eugin

• No. of clinics:

2 3 CIRH Eugin

• No. of clinics:

1 4 Eugin Italy Eugin

• No. of clinics:

3 5 8 CFC Denmark Eugin

• No. of clinics:

1 6 Eugin Colombia Eugin

• No. of clinics:

1 7 Huntington Eugin

• No. of clinics:

4

Source: NMC Health estimates

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Significant opportunity for a global leader to consolidate the fast growing fertility treatment market

5%

2.6m

IVF cycles globally

Source: Technavio Global Fertility Service Market 2016-2020

1 Market sizes cover the global fertility services market (including infertility drugs and services in Assisted Reproductive Technology)

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Top 5 players account for only c.5% global market share… … in a fast growing market projected at c.US$21bn by 2020

Global fertility services market (US$bn)1: Combined top 5 players market share by number of cycles (2016): 5.9 8.9 4.5 6.6 3.4 5.3 13.7 20.8 2015A 2020E EMEA Americas APAC

+8.6% +8.1% +9.7% CAGR

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Multi-dimensional platform well positioned for further expansion

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• Our patients can

choose to receive treatment at any facility in any country

• Egg, sperm and

embryo movement between the clinics

Patient referrals and transfers within the Group Patient referrals and transfers within the Group

• Transforming Europe’s

largest egg donation program into a global program with diversity

• f phenotypes
• Offering sharia-

compliant services in relevant markets

Comprehensive range of fertility treatments Comprehensive range of fertility treatments

• Successful integration
• f acquisitions
• Track record of organic
• penings

Expertise in

• pening and

integrating new clinics Expertise in

• pening and

integrating new clinics

• R&D collaborations

with over 15 institutions

• Medical committees of

renowned IVF practitioners and scientific leaders

Global R&D collaborations and network Global R&D collaborations and network

• Ability to optimize use
• f legislations and

provide innovative solutions to patients

• Cross-border embryo

transfer

Deep knowledge of all regulatory frameworks Deep knowledge of all regulatory frameworks

1 2 3 4 5

Development of pan-continental presence across the Middle East, Europe and the Americas provides scale and flexibility to drive quality, access to treatments and innovation Development of pan-continental presence across the Middle East, Europe and the Americas provides scale and flexibility to drive quality, access to treatments and innovation

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Agenda

20 1

Welcome note from the CEO

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NMC Healthcare – Managing rapid growth

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NMC Fertility – Building a global business NMC Distribution – Capitalizing on synergies with Healthcare

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Q&A

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Verticals of operations

• Solutions to the healthcare industry including Primary,

Surgical, Specialty &Critical Care, Laboratory and Radio diagnostics, Medical Furniture and Rehabilitation

• Selling to all 1,500 pharmacies, 150 hospitals and >1,000

medical centers and clinics

Medical Equipment, Consumables and Devices

• Providing feed, care, grooming and medical

solutions to stables, dairies, poultries, vet clinics and hospitals

Veterinary

• One of UAEs largest FMCG products distributor across personal

care, food, beverages, household care and home improvement

• >7,000 points of sale across supermarkets, groceries, gas

stations, hotels, cafes, wholesalers

Consumer Pharma

• One of UAEs largest teams of medical & sales reps
• Visiting over 30,000 licensed doctors in UAE monthly
• Selling to all 1,500 pharmacies, 150 hospitals and >1,000

medical centers and clinics

• Solutions for schools including furniture, sports

equipment, study aids, lab & ICT equipment

Education

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• One of the largest sales forces with a single company in

the UAE

• Sales team of >750 professionals
• Value added services to establish and grow brands in the

UAE market

• Over 10,000 customers (1,000 clinics, medical centers &

hospitals, 30,000 doctors, 1500 pharmacies, 500 schools, >7,000 supermarkets, groceries, gas stations

Sales

• Wide range of premier medical equipment services
• Authorised Service Provider (ASP) certification from

multiple partners

• Two Specialised Biomedical Engineering Workshops with

certified safety, testing and calibration analysers

Technical Service

• Strong regulatory team for each vertical taking care of all

compliance issues

• Helps partners comply with the respective regulator -

municipalities, ministries & chambers of commerce

Regulatory

• Investment in analytic capabilities allowing faster insights

than competitors

• Key areas include customer channel penetration, value

and order frequency, SKU product analysis, return on marketing investments, customer service reports

Analytics

• Focus on below the line marketing activities
• Typically happen at points of sale & at consumer hubs
• Methods include: maximizing visibility & share of shelf at

point of sale, new brand launches and offer packs, retail event calendar participation

Marketing

• With >400 people, one of UAEs largest teams of

merchandisers

• Key methods include availability and visibility of products
• n shelf, execution of planograms, POS communications,

minimize stock returns

Merchandizing

• Build brand awareness by educating customers
• Undertake trials via dry and wet sampling for food

products, organizing special promotional events such as screening camps within companies

Promotions

• >500,000 sq ft of warehousing across the UAE
• Capacity of over 40,000 pallets
• Multiple temperature ranges including cold chain
• State of the art put away and pick systems minimize

turnaround times and reduces error rates

Warehousing

• 48-hour order to delivery commitment for all verticals
• Delivers >2,000 orders a day
• Over 250 delivery vehicles all GPS enabled allowing real-

time tracking, status of delivery targets and vehicle status

Delivery

NMC Trading overview

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Agenda

23 1

Welcome note from the CEO

3

NMC Fertility – Building a global business

4

NMC Distribution – Capitalizing on synergies with Healthcare

5

Q&A

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NMC Healthcare – Managing rapid growth