1Q2020 Results Presentation Jun June 2020 2020
Contents: • 1Q2020 Results • Covid-19 Response Measures • Growth Strategies • Expanding Customer Reach • “ Wayak ” Investment • Al Borg Scan Updates • Nigeria Updates • Appendix 2 INTEGRATED DIAGNOSTICS HOLDINGS
Results Snapshot IDH continued to demonstrate resilience as operations were partly impacted by Covid-19 Revenue Split EGP 500 mn EGP 243 mn Revenue in 1Q 2020 Gross Profit in 1Q 2020 ▼ 8% y-o-y ▼ 9% y-o-y / 49% margin IDH revenue by geography IDH revenue by type (1Q2020) (1Q2020) EGP 203 mn EGP 102 mn EBITDA in 1Q 2020 Net Profit in 1Q 2020 ▼ 14% y-o-y / 41% margin ▼ 17% y-o-y / 21% margin 1.9% 11.6% 1.7% 45.5% EGP 82 457 54.5% Operational branch labs in 1Q 2020 Average revenue per test in 1Q 2020 ▲ 26% y-o-y ▲ 35 branches 84.7% 6.1 mn 1.6 mn Walk-in Corporate Egypt Sudan Jordan Nigeria Tests completed in 1Q 2020 Patients served in 1Q 2020 ▼ 28 ▼ 21 28% y-o-y 21% y-o-y 3 INTEGRATED DIAGNOSTICS HOLDINGS
Revenue Growth Drivers Revenues for the first quarter of the year came in at EGP 500 million, down 8% year-on-year on the back of a lower volumes at Egypt’s contract segment. Revenue Growth Dr Drivers s | | EGP mn mn, % -8% 2 2 1 1 546 6 500 00 (1) (48 48) 1Q201 019 Egypt pt Jo Jorda dan Sud udan an Nige geria 1Q202 020 Egypt was the primary driver of this quarter’s decline , where the dual- Excl Ex cluding cam ampaign- related volumes, the Group’s consolidated effect of the 100 Million Healthy Lives Campaign-related volumes in revenues wou ould ha have rec ecorded a a 3% 3% year-on on-year de decline in in 1Q 1Q 1Q 2019 and the shorter working hours during the tail end of the 20 2020 20, impacted by the Covid-19 outbreak at the end of the quarter led to a 10% year-on- year decline in Egypt’s revenue . quarter. In n Jordan and and Sud Sudan, , government-imposed curfews and IDH DH ’ s s Nig igerian op operations rep eported a a strong, g, vol olume-driven ris ise lockdowns led to the closure of some branches in in revenues s for or the he qu quarter as the geography ’ s ramp-up in during March through May, however, bo both cou ountries rep eported operations versus last year outweighed the limited impact of gr growing pa patient and and tes est volumes in in 1Q Q 2020. Covid-19 curfews on branch hours. 4 INTEGRATED DIAGNOSTICS HOLDINGS
Segment Performance Revenue mix normalized from higher campaign-related contract volumes last year Contr tract Se Segment Walk-In Se Segment Tota otal 1Q2019 2019 1Q2020 2020 Chan ange 1Q2019 2019 1Q2020 2020 Chan ange 1Q2019 2019 1Q2020 2020 Chan ange Revenue (EGP ‘000) 353,987 272,522 -23% 192,100 227,234 18% 546,087 499,757 -8% 65% 55% 35% 45% 100% 100% % of Revenu enue Patien ents s ('00 000) 0) 1,546 1,061 -31% 441 510 16% 1,986 1,571 -21% % of Patient ents 78% 68% 22% 32% 100% 100% 229 257 12% 436 445 2% 275 318 16% Revenu enue per Patient ent (EGP) P) Test ests s ('000 '000) 6,982 4,485 -36% 1,447 1,621 12% 8,430 6,106 -28% % of Test sts 83% 73% 17% 27% 100% 100% 51 61 20% 133 140 6% 65 82 26% Revenu enue per Test st (EGP) P) Test est per Patient ent 4.5 4.2 -6% 3.3 3.2 -3% 4.2 3.9 -8% EGP 61 EGP 272.5 mn EGP 140 4.5 mn 1.6 mn EGP 227.2 mn Avg. rev / contract test in Contract revenue in Avg. rev / walk-in test in Contract tests in 1Q2020 Walk-in tests in 1Q2020 Walk-in revenue in 1Q2020 1Q2020 1Q2020 1Q2020 ▼ 36% y-o-y ▲ 12% y-o-y ▲ 18% y-o-y / 45% cont. ▲ 20% y-o-y ▼ 23% y-o-y / 55% cont. ▲ 6% 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 June 2019 IDH 1Q2020 Patient Volumes | ‘000 IDH 1Q2020 Tests per Patient | ‘000 -21% -8% 1, 1,986 4.2 3.9 The awareness 152 1,571 Excl Ex cluding the im impact of of 10.8 campaign add added 15 152 2 the Cam ampaign, , test pe per thousand pa patients s to o patient inc pa increas ased 5% 5% y- -14% +5% 1,835 3.7 IDH’s contract segment o-y in the first quarter in 1Q2019 of 2020 1Q2019 1Q2020 1Q2019 1Q2020 Patients Campaign Patients Test / Patient Campaign Differential IDH DH 1Q2 Q2020 Av Average Re Revenue pe per Test | | EG EGP IDH DH 1Q2 Q2020 Re Revenues | | EG EGP mn +26% -8% The awareness Average revenue per 546 546 82 82 65 65 campaign con ontributed 500 500 test increased by 26% 31 EGP 31 million to IDH’s 19 year-on-year. Fac actoring top-line in 1Q2019. ou out the Cam ampaign, -3% Controlling for the 515 515 +8% 76 76 average revenue pe per Campaign, tes est would inc increase 8% 8% consolidated revenue in 1Q2020 1Q2019 1Q2020 1Q2019 1Q2020 contracted 3% y-o-y Revenue / Test Campaign Differential Revenue Campaign Differential 6 INTEGRATED DIAGNOSTICS HOLDINGS
A Ramp-up of Operations at Al Borg Scan Al Al Borg Sc Scan Revenue Progress ssion | | EGP mn 1.53 1.47 1.45 1.39 1.37 1.37 1.37 1.18 1.13 1.08 1.06 0.94 0.90 1.28 0.84 0.80 0.70 0.34 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 EGP (0.6) mn EGP 4.1 mn 8.1 k EGP 506 EBITDA in 1Q2020 Revenue in 1Q2020 Tests in 1Q2020 Revenue / Test in 1Q2020 (-14% margin) Al- Borg Scan has achieved management’s targets for rap apid gr growth in in the he top lin line whil hile on one-off exp xpenses s wei eighed do down on on pr profitability for or the pe period. The addition of Al Borg Scan’s new branch in Cairo, which launched in February 2020, will bring the company’s total investment cost to date to EGP 79 million. 7 INTEGRATED DIAGNOSTICS HOLDINGS
Regional Performance Consolidated top-line contracted year-on- year on the back of lower revenues recorded by IDH’s Egyptian operations Revenues | EGP P mn mn EB EBITDA* | EGP mn mn / % -10% -17% In n Egy Egypt, revenues s wer ere do down 10 10% EGYP YPT y-o-y on on the bac back of of lo lower vol olumes. s. 227 27 471 71 424 24 188 88 84.7% .7% Excluding the 100 Million Healthy EGP 42 424 4 mn 48% Lives Campaign’s impact, revenues 44% 40 405 5 Branches would have declined by 4% y-o-y. 1Q2019 1Q2020 1Q2019 1Q2020 -2% -3% Despite government-imposed JORD RDAN curfews and lockdowns, IDH’s 17 17 16 16 11.6% Jordanian operation delivered a a 9% 9% EGP 58 58 mn 59 59 58 58 28% 28% y-o-y inc increase in in revenue in in JOD 19 Br Branches terms. 1Q2019 1Q2020 1Q2019 1Q2020 +22% +34% SU SUDAN In n SDG SDG term erms, s, revenues s wer ere up up by 2 a soli a solid 50 50% year-on on-year on account 1.9% 10 10 1 8 EGP 10 10 mn of higher test volumes and 20% 18% 21 Branches 21 improved pricing. -12% 1Q2019 1Q2020 1Q2019 1Q2020 +11% -71% Revenue in in NGN terms s was as up up 51 51% Nig igeria -28% year-on on-year, driven by higher tests -107% 9 1.7% 8 -2 performed which rose by a solid EGP 9 9 mn 218% year-on-year largely due to -8 12 Br Branches an incorrect test count in 1Q2019. 1Q2019 1Q2020 1Q2019 1Q2020 SDG = 0.2954 EGP, JOD = 22.0602 EGP, and NGN = 0.0417 EGP 8 INTEGRATED DIAGNOSTICS HOLDINGS
Strong Group Profitability Gross profit margin came in unchanged versus the same period of last year as decreased raw material costs helped mitigate lower revenues for the quarter 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 -8% +24% IDH’s con onsolidated IDH’s top -line 279 279 257 257 68 68 84 84 COGS de decreased 8% 8% y- contraction combined 17.1% 13.4% o-y, largely reflecting a with ith an an inc increase in in 7.0% 0% 0.8% 8% 1.0% 0% 0.2% 2% 1.4% 4% decrease in raw 0.3% 3% 3.8% 8% 1.7% 7% SG SG&A costs, saw total 15.5% 0.8% 8% material outlays on the 0.7% 7% 2.9% 9% 16.8% SG SG&A/sal ales s rea each 2.7% 7% back of a one-off 16.9% 16 .9% versus 12.4% in 6.1% 1% 5.2% 2% 19.6% 14.4% discount granted by 1Q2019 suppliers 1Q2019 1Q2020 1Q2019 1Q2020 Salaries Sales & Marketing Consul. Fees Others Raw Material Salaries Rent Transportation Utilities Others IDH DH Co Consolidated Gross Prof ofit | | EG EGP mn mn / % IDH DH Co Consolidated EBI EBITDA | | EG EGP mn mn -9% -14% EBITDA contracted Gross profit margin 14% y-o-y on the back 268 268 243 243 203 203 236 236 rec ecorded a a strong g 49 49% of lower revenues and unchanged from the higher SG&A expenses. 49% 49% gross profit margin EBI EBITDA mar argin stood at 49% 49% 43% 43% 41% 41% recorded in the first 41% for 41 or the he qu quarter quarter of last year versus 43% this time last year 1Q2019 1Q2020 1Q2019 1Q2020 9 INTEGRATED DIAGNOSTICS HOLDINGS
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