Saudi German Health Investor Presentation – 1Q 2021 SGH at a Glance *Aggregate Figures from 2015 Till Q Till 1 2021 Avg
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Saudi German Health Investor Presentation – 1Q 2021 6 ~1k bed ~90% Operational Population Hospitals Capacity Access 5.7k 992 1.4k Total Total Total Staff Doctors Nurses 3.7 60% 52% Avg. Length of Utilization Utilization Rates Stay Rates (Beds) (Clinics) 332k* 7.3mn* 170k* Inpatient Outpatient Performed Censes Censes Surgeries SGH at a Glance 2 *Aggregate figures from 2015 till Q1 2021 Mission Vision Group To Provide Evidence-Based, Safe Medical To be the Leader in Improving People’s Lives. Services Delivered with Effective Management, Engagement with Our Community and The Fulfillment of Our Stakeholder’s Needs. 3 TABLE OF CONTENT 01 02 03 04 05 Overview Market Landscape Financial & Updates & Q1 2021 Results Operational Strategic Focus Highlights 4 01 Overview 5 Our People Eng. Sobhi Batterjee Makarem Batterjee Dr Ahmed Shebl Madani Hozaien Chairman President and Vice Chairman Group Chief Executive Officer Group Chief Financial Officer 6 About Saudi German Health Saudi German Health at a Glance Middle East Healthcare Company (MEAHCO), publicly known as Saudi German Health (SGH), is a leading healthcare provider in Saudi Arabia. Building on a long family legacy as medical pioneers in the Kingdom, Saudi German Health was founded by the Batterjee family 33 years ago to relieve people’s suffering and have a positive impact on their health. In 1988, Eng. Sobhi Batterjee, Chairman of Saudi German Health, and Dr. Khalid Batterjee, Vice President of Saudi German Health, established the first hospital in Jeddah and collaborated with German University Hospitals to bring advanced German healthcare standards and expertise to the local community for the first time in the Kingdom of Saudi Arabia. These associations inspired the ‘German’ in our name. Since then, MEAHCO has been expanding and growing its presence organically on firm footing. MEHACO is the most geographically diverse healthcare player in Saudi Arabia with a total licensed capacity of 1,517 beds and a comprehensive network of 6 full-fledged hospitals in Jeddah, Asser, Riyadh, Madinah, Hail and Dammam, enabling it to access ~90% of the Kingdom's population. A Revamped Vision Old Branding New Branding 7 Equity Growth Story 217 Licensed Beds 300 Licensed Beds 150 Licensed Beds 150 Licensed Beds 204 Operational Beds 214 Operational Beds 90 Operational Beds 98 Operational Beds 131 Clinics 69 Clinics 24 Clinics 16 Clinics 1988 2001 2017 2020 Establishment in Establishment in Establishment in Establishment in Dammam & Riyadh Hospital Joined Jeddah Riyadh Hail Mayo Clinic Network 2000 2003 2018 2021 Establishment in Establishment in Beverly Clinics Rebranding to Saudi German Asser Madinah Health 400 Licensed Beds 300 Licensed Beds 20 Clinics 291 Operational Beds 197 Operational Beds 89 Clinics 58 Clinics 8 Saudi German Health's Brand Footprint 4 Saudi Arabia • 6 Hospitals COUNTRIES ➢ Jeddah ➢ Asser ➢ Riyadh ➢ Madinah ➢ Hail 11 ➢ Dammam HOSPITALS United Arab Emirates • 3 Hospitals ➢ Dubai ➢ Sharjah 30+ ➢ Ajman YEARS Egypt • 1 Hospital ➢ Cairo 44 Yemen SPECIALITIES • 1 Hospital Hospitals Owned ➢ Sana Hospitals Under Management Agreement 9 Accreditations JeddahJeddah AsserAsser RiyadhRiyadh MadinahMadinah HailHail DammamDammam Accredited 10 In Progress Share Overview Shareholder Structure SGH Share Data Market Cap. (SAR mn) 3,240 0 Market Cap. (USD mn) 864 Others 52-Week High (SAR) 38.70 92mn 45% Bait Al-Batterjee 55% Shares 52-Week Low (SAR) 24.00 3-month ADTV (SAR mn) 29 12-month ADTV (SAR mn) 20 1 Year Stock Performance Vs. TASI VOLUME TRADED (SGH) MEAHCO (SAR) Tadwaul All Share Index (Rebased) 40 12,000,000 10,000,000 35 8,000,000 30 6,000,000 4,000,000 25 2,000,000 20 - Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 11 02 Market Overview 12 Population at a Glance Gender Breakdown (%) Age Breakdown (%) 14% 0-19 31% Male 42% 20-34 Female 35 - 49 58% 28% >50 27% Breakdown by Administrative District (%) 25% 25% 15% 7% 7% 4% 5% 3% 2% 1% 2% 2% 2% Riyadh Makkah Madinah Al-Qassim Eastern Region Asir Tabuk Hail Northern Jazan Najran Al-Bahah Al-Jawf Borders *Sources: Kingdom of Saudi Arabia - General Authority for Statistics (FY 18/19) 13 Sector Growth Profile No . of Baby Deliveries (# mn) Breakdown by Institution (%) MOH Other Gov.Sector Private Sector 609 601 40% 40% 39% 17% 16% 17% 587 43% 44% 44% Baby Deliveries Baby FY 16/17 FY 17/18 FY 18/19 FY 16/17 FY 17/18 FY 18/19 No. of Surgeries (# mn) 18/19 Breakdown by Type (%) General 21% 1.4 OBS/GYN 18% 1.3 Ophthamology 10% 1.1 Orthopedics 10% E.N.T 9% Others 9% Urology 6% Pediatrics 5% Surgeries Cardiac,chest & vascular 4% Plastic 3% Faciodental 3% FY 16/17 FY 17/18 FY 18/19 Neurosurgery 2% No. of Physicians Breakdown by Institution (%) Total Physicians (#000) Total Physicians/Every 10k People MOH Other Gov.Sector Private Sector 28% 28% 28% 94 82 88 20% 21% 20% 52% 52% 52% Physicians 25.3 26.4 27.6 FY 16/17 FY 17/18 FY 18/19 FY 16/17 FY 17/18 FY 18/19 *Sources: Kingdom of Saudi Arabia - General Authority for Statistics 14 Inpatients & Outpatients at a Glance Breakdown of Inpatients Sector Breakdown 49% 42% 46% 36% 40% 39% Inpatients 28% 15% 18% 16% 72% FY 16/17 FY 17/18 FY 18/19 Saudi Non-Saudi MOH Other Gov.Sector Private Sector Breakdown of Outpatients Sector Breakdown 43% 44% 39% 43% 39% 37% 17% 18% 19% Outpatients 75% 25% Saudi FY 16/17 FY 17/18 FY 18/19 Non-Saudi MOH Other Gov.Sector Private Sector *Sources: Kingdom of Saudi Arabia - General Authority for Statistics 15 With Clear Room for Growth Beds Hospitals No. Beds (# 000) No. of Hospitals (#) 77.0 498.0 75.1 494.0 73.0 484.0 70.8 69.4 470.0 462.0 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 No. of Beds/ 100k Person (#) No. of Hospitals/ 100k Person (#) 225.0 1.5 224.7 1.5 224.2 1.5 223.7 1.5 222.9 1.5 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 *Sources: Kingdom of Saudi Arabia - General Authority for Statistics 16 Health Insurance (1-2) Highlights Gross Written Premiums (SR bn) Net Claims Incurred (SR bn) 25 22.5 18.3 17.1 19.9 16.1 Total Saudi Insurance 18.6 19.1 17.7 17.7 14.1 Companies 13.5 13.1 10mn FY 2016 FY 2017 FY 2018 FY 2019 9M 2019 9M 2020 FY 2016 FY 2017 FY 2018 FY 2019 9M 2019 9M 2020 Contributors in Health Insurance Net Written Premiums (SR bn) Total Number of Policies (#) Policies 2.7 21.6 19.3 2.3 18.1 18.4 17.0 16.9 1.8 35% 1.5 1.5 1.2 Saudi 65% Non-Saudi FY 2016 FY 2017 FY 2018 FY 2019 9M 2019 9M 2020 FY 2016 FY 2017 FY 2018 FY 2019 9M 2019 9M 2020 *Sources: Saudi Central Bank 17 Health Insurance (2-2) Gross Written Premiums (% of Total Market) Net Claims Incurred (% of Total Market) 61% 69% 68% 68% 59% 59% 57% 64% 52% 51% 60% 60% FY 2016 FY 2017 FY 2018 FY 2019 9M 2019 9M 2020 FY 2016 FY 2017 FY 2018 FY 2019 9M 2019 9M 2020 Net Written Premiums (% of Total Market) Total Number of Policies (% of Total Market) 73% 72% 74% 69% 39% 65% 60% 29% 25% 27% 27% 21% FY 2016 FY 2017 FY 2018 FY 2019 9M 2019 9M 2020 FY 2016 FY 2017 FY 2018 FY 2019 9M 2019 9M 2020 *Sources: Saudi Central Bank 18 03 Finanical & Opeational Highlights 19 Key P&L Indicators Revenue (SAR mn) EBITDA (SAR mn) Net Profit After Zakat (SAR mn) 438 390 421 1,772 359 1,616 371 1,535 1,497 1,462 292 1,391 254 252 202 165 94 90 436 9 18 418 53 51 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 Q1 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 Q1 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 Q1 2020 2021 2020 2021 2020 2021 Gross Profit Margin (%) EBITDA Margin (%) Net Profit Margin (%) 29% 53% 51% 26% 25% 25% 22% 41% 20% 36% 18% 34% 34% 32% 29% 13% 14% 12% 13% 12% 6% 5% 4% 2% FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 Q1 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 Q1 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 Q1 2020 2021 2020 2021 2020 2021 20 Key Balance Sheet Metrics Assets (SR bn) Cash and Cash Equivalent (SR mn) 4.1 4.0 4.0 155 149 3.3 2.7 111 2.5 2.4 2.1 56 54 44 17 17 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 2020 Q1 2021 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 2020 Q1 2021 Capital Structure (SR bn) Total Equity Debt D/E Ratio 0.9x 1.8 1.0x 0.9x 1.6 0.8x 1.4 1.6 1.60.6x 1.6 1.6 1.60.7x 1.5 1.5 0.7x 1.2 1.5 1.4 0.5x 0.6x 1.0 0.4x 0.5x 0.8 1.1 1.0 0.4x 0.6 0.8 0.2x 0.2x 0.3x 0.4 0.1x 0.6 0.2x 0.2 0.2 0.3 0.3 0.1x 0.0 0.0x FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Q1 2020 Q1 2021 21 Key Operational Metrics (1-2) Inpatient Cases (# 000) Outpatient Cases (# mn) Performed Surgeries (# 000) 70 1.3 35 1.1 1.1 1.2 1.2 1.2 57 29 25 25 48 48 45 48 23 23 10 15 16 0.3 0.3 8 2015 2016 2017 2018 2019 2020 Q1 Q1 2015 2016 2017 2018 2019 2020 Q1 Q1 2015 2016 2017 2018 2019 2020 Q1 Q1 2020 2021 2020 2021 2020 2021 Average Length of Stay (# Days) Beds Utilization Rate (%) Clinics Utilization Rate (%) 75% 71% 71% 71% 66% 4.5 4.6 66% 60% 4.2 58% 61% 60% 59% 56% 55% 4.1 4.1 56% 51% 52% 3.7 3.5 3.6 2015 2016 2017 2018 2019 2020 Q1 Q1 2015 2016 2017 2018 2019 2020 Q1 Q1 2015 2016 2017 2018 2019 2020 Q1 Q1 2020 2021 2020 2021 2020 2021 22 Key Operational Metrics (2-2) Revenue Breakdown – Q1 2021 Revenue Breakdown – Q1 2021 3% 5% 6% 22% Jeddah Insurance 32% 17% Aseer MoH Riyadh 50% Cash Madinah Hail Others 25% Dammam 21% 19% CoGS Breakdown – Q1 2021 Saudization Rate (%) 6% 9% Salaries & Benefits 36% Consumables Saudi Non-Saudi 55% 30% Depreciation 64% Others 23 04 Updates & Strategic Focus 24 Expansion & CAPEX Riyadh One Day Makkah Makkah Dammam Outpatient Surgery Hospital Housing Housing Tower Hospital 134 beds,160 clinics 300 beds