FY 2017 Results Presentation 7 March, 2018 Safe Harbour statement - - PowerPoint PPT Presentation

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FY 2017 Results Presentation 7 March, 2018 Safe Harbour statement - - PowerPoint PPT Presentation

FY 2017 Results Presentation 7 March, 2018 Safe Harbour statement Important information: forward-looking statements These materials contain certain forward-looking statements relating to the business of NMC Health plc (the Company) and its


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FY 2017 Results Presentation

7 March, 2018

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Safe Harbour statement

Important information: forward-looking statements These materials contain certain forward-looking statements relating to the business of NMC Health plc (the “Company”) and its subsidiaries (collectively, the “Group”). All statements included in these materials other than statements of historical facts, including, without limitation, with respect to the progress, timing and completion of the Group’s development, the Group’s ability to treat, attract, and retain patients and customers, its ability to engage medical staff and to operate its business and increase referrals, the integration of prior acquisitions, the Group’s estimates for future performance and its estimates regarding anticipated operating results, future revenue, capital requirements, shareholder structure and financing, are forward looking statements. In addition, even if the Group’s actual results or development are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of the Group’s results or developments in the future. In some cases, you can identify forward-looking statements by words such as “could,” “should,” “may,” “expects,” “aims,” “targets”, “anticipates,” “believes,” “intends,” “estimates,” ”will” or, in each case, their negative or other variations or similar words. These forward-looking statements are based largely on the Group’s current expectations as of the date of this presentation and are subject to a number of known and unknown risks and uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by these forward-looking statements. In particular, the Group’s expectations could be affected by, among other things, uncertainties involved in the integration of acquisitions or new developments, changes in legislation or the regulatory regime governing healthcare in the jurisdictions in which we operate, poor performance by medical staff who practice at our facilities, unexpected regulatory actions or suspensions, competition in general, the impact of global economic changes, and the Group’s ability to obtain or maintain accreditation or approval for its facilities or service lines. In light of these and

  • ther risks and uncertainties, there can be no assurance that the forward-looking statements made during this presentation will in fact be

realised and no representation or warranty is given as to the completeness or accuracy of the forward-looking statements contained in these materials. The Group is providing the information in these materials as of this date and any forward-looking statements speak only as of this date. Except as required by the Financial Conduct Authority, or by law, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in the foregoing is intended to or shall exclude any liability for, or remedy in respect of, fraudulent misrepresentation.

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Prasanth Manghat CEO Senior management presenting Prashanth Shenoy CFO

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Asjad Yahya Investor Relations

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1. FY 2017 highlights 2. Financial performance & analysis

Contents

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FY 2017: Enhanced our foundations for sustainable growth

  • 2017 witnessed a continuation of the strong growth seen in previous years
  • Revenues at US$ 1.6bn, up 31.3% YoY; EBITDA up 43.6% YoY to US$ 353m
  • NMC became a member of the coveted FTSE 100 index during the year
  • Updated strategy announced in December 2017 lays out the roadmap for future expansion
  • O&M vertical to lead drive into the wider emerging markets, while fertility to be firmly entrenched as a global

business

  • New verticals to be added, with the recently acquired Cosmetics business a prime candidate
  • Integration a key theme for the year
  • Deepening of management team and introduction of new cluster-based organizational structure to

facilitate sustained growth

  • Intense focus on quality of care
  • Several awards received during 2017 reflect the importance of operational excellence in the company
  • Emphasizing employee development and wellbeing
  • New performance management system being introduced to identify and reward better performing employees
  • NMC to embrace technological advances set to transform the medical industry to further its reputation

and prospects for growth

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FY 2018: A promising outlook for the year

  • Strong start to 2018
  • Acquisition of outstanding minority stakes in Fakih IVF and As Salama Hospital
  • Acquisition of 70% of CosmeSurge in UAE and Al Salam Medical Group in KSA
  • New O&M contract with ADNOC adds another prestigious client to the business
  • Entering the Egyptian market with a new O&M contract
  • GDP growth expected to accelerate in the region on the back of improved macro factors, particularly

improved oil prices

  • UAE economy projected to grow at 2.9% in 2018 vs. 1.6% in 2017
  • Oxford Economics forecasts 2.9% GDP growth for GCC in 2018, fastest since 2015
  • Dubai in benefiting from roll-out of mandatory insurance
  • Strong uptake in Dubai on the back of mandatory insurance roll-out adds opportunity for further expansion in the

Emirate

  • Leverage NMC network and anticipate acquisitions to deliver ambitious growth
  • Strengthened management team set to deliver - we begin 2018 with confidence

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1. FY 2017 highlights 2. Financial performance & analysis

Contents

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Group EBITDA rises 43.6% to US$ 353.4m in FY 2017

  • FY 2017 revenue reached US$ 1.6bn, up 31.3% YoY
  • Consolidation of previous organic and inorganic expansions,

extension of geographic footprint and deepening of management structure supported strong growth in 2017

  • Healthcare business accounted for 70% of Group

revenues and 87% of Group EBITDA for the year

  • EBITDA increased by 43.6% to US$ 353.4m
  • EBITDA margin reached 22.0%, increase of 180bps YoY
  • Adjusted net profit reached US$ 236.6m, up 43.2% YoY
  • Adjusted EPS 1.036, up 32.7% on FY 2016
  • Impacted by new shares issued in December 2016

Key figures Consolidated overview 8

880.9 1,220.8 1,603.4

36.8% 38.6% 31.3%

0% 10% 20% 30% 40% 50% 300 600 900 1,200 1,500 1,800 2015 2016 2017

Revenue US$m and annual growth

Revenue Growth

150.3 246.1 353.4 17.1% 20.2% 22.0%

0% 5% 10% 15% 20% 25% 100 200 300 400 2015 2016 2017

EBITDA US$m and margin

EBITDA Margin

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Healthy balance sheet and strong cash flows

  • Net debt stood at US$ 1,011.4m; mainly utilized for

acquisitions

  • Net debt-to-EBITDA ratio of 2.9x at year end remains well

within comfort range

  • 78.5% of underlying EBITDA converted into cash

generated from operations

  • Net operating cash flow for the Group increased 57.3% to

US$ 277.5m in FY 2017

  • Net working capital to sales ratio increased slightly to

30.6% in FY 2017 (FY 2016: 29.5%)

  • Total capital expenditure was US$ 63.5m in FY 2017
  • US$ 31.4m was incurred on new capital projects

and US$ 32.1m was related to further capital investment in existing facilities

  • NMC has secured a new US$ 2bn facility, of which US$

600m is currently unutilized

  • Refinances and enhances the existing facility
  • Provides unsecured funding and flexibility, in-line

with the current status and future growth profile of the company

79% of EBITDA converted to operating cash flow Consolidated overview 9 Debt level remains in line with expectations

552.9 431.3 1,011.4

200 400 600 800 1,000 1,200 2015 2016 2017

Net Debt US$m 84.1 176.4 277.5

50 100 150 200 250 300 2015 2016 2017

Operating Cash Flow US$m

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Financial performance & Analysis Healthcare Division FY 2017

Contents

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Healthcare business remains the primary growth driver

  • Healthcare revenues increased 41.1% YoY to US$

1,161.6m on back of organic and inorganic expansion

  • Division reported EBITDA US$ 355.4m, up 30.6% on FY

2016

  • EBITDA margin increased by 130bps to 30.6%
  • Ramp-up at NMC Royal continues ahead of expectations,

with total licensed beds increased to 316

  • Integration of Al Zahra Hospital, our largest acquisition to

date, is also proceeding smoothly

  • Total patient increased by 33.5% YoY to 5.8m in FY 2017
  • Revenue per patient increased by 7.6% to reach US$ 189.8
  • Revenue per patient is up 88% since our IPO in

2012

  • Total number of licensed beds stood at 1,539 as at end

2017 with 1,365 operational

  • Current pro-forma licensed beds stand at 1,919

Performance Key figures 11

137.0 241.1 355.4 26.5% 29.3% 30.6% 0% 10% 20% 30% 40% 100 200 300 400 2015 2016 2017

Healthcare EBITDA US$m and margins

EBITDA Margin 517.1 823.3 1,161.6 55.7% 59.2% 41.1% 0% 10% 20% 30% 40% 50% 60% 70% 300 600 900 1,200 1,500 2015 2016 2017

Healthcare revenue US$ and YoY growth

Revenue Growth 55.7%

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Contents

Financial performance & Analysis Distribution Division FY 2017

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Reinforcing dominant position in the UAE

  • Revenues increased 13% YoY to reach US $487m in FY

2017, supported by impact of mandatory healthcare insurance in Dubai

  • Stock Keeping Units (SKUs) reached 108,900, up 17.5%

compared to FY 2016

  • Division EBITDA recorded 9.4% YoY growth to reach US$

51.5m

  • EBITDA margin declined slightly to stand at 10.6% (FY

2016: 10.9%)

  • Continued development of supporting infrastructure:

storage area up 11% YoY to 725,000 sq. ft. and vehicle fleet increased by 1% YoY to 232

  • Distribution accounted for 30% of the Group’s top-line and

13% of EBITDA

Key figures Performance 13

393.4 431.9 486.8 16% 10% 13% 0% 5% 10% 15% 20% 200 400 600 2015 2016 2017

Distribution revenue US$m and YoY Growth

Revenue Growth 43.5 47.1 51.5 11.1% 10.9% 10.6% 8% 9% 10% 11% 10 20 30 40 50 60 2015 2016 2017

Distribution EBITDA & margin

EBITDA Margin

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Contents

Q&A

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