H1 2019 Results Presentation 22 August 2019 Safe harbour statement - PowerPoint PPT Presentation

H1 2019 Results Presentation 22 August 2019

Safe harbour statement 2

Strong first half, delivering double-digit revenue growth Key y H1 2019 Highlights ts Continued market leading performance  Evolved our Multispecialty vertical with nephrology becoming a key focus area in Centres of Excellence Investment in verticals delivered organic and inorganic growth  Reinforced the Fertility business’ #1 position as a global leader by Progressed with integration while leveraging Harvard relationship maintaining quality standards Strengthened the balance sheet  Expanded the Long-term care and improved leverage business to provide outpatient rehabilitation care Provided growth opportunities for NMC’s network  Generated higher revenue through cross referrals to other segments from the O&M vertical Continued successful execution of strategy in H1 2019 3 3

Good progress against strategic growth drivers KSA Partnership  Completion of KSA Government Partnership Initiatives  Creation of one of the  DRG implementation in largest healthcare Dubai from this year Raising acuity operations in KSA  Positive reforms  One of the top landmark  Internationally catalyzing healthcare events in history of NMC associated paediatric Mandatory insurance market in Abu Dhabi since inception offerings gaining momentum  Oman started  Centre of Excellence at implementing mandatory trauma (NMC Royal) insurance on limited attracting complex scale patients  Medical tourism focused  Sharjah and Northern on elective cases in Emirates expected to NMC Royal DIP launch mandatory  Affiliation with Harvard insurance imminently Medical School uplifting NMC’s IVF platform 4 4

Evolution from a family owned business to a FTSE-100 company Management and Board committed to balancing business growth, enhancing transparency, improving governance and adherence to ESG standards • Aligning management and shareholder interest • Consideration being given to most appropriate management KPIs to further align with shareholder interest • Consultation period will take place to give consideration to appropriate metrics • E.g. shift in focus from EBITDA to EPS, cash flow or returns metrics • Commitment to enhance transparency • Already actively engage with shareholders • Increased depth and frequency of communications • Established related party committee • Investing in and promoting the highest standards in ESG 5 5

COO Presentation 22 August 2019

NMC Group H1 – 2019 at a glance NMC Health patients in H1 2019: 26% y.o.y growth >4mn 16.7% y.o.y in operational beds across the Group 26% y.o.y growth in Growth in patient volume in UAE (y.o.y.): LTC patients across GCC 6.4% 55% y.o.y growth in Revenue Per Patient Growth (y.o.y) 17% IVF cycles across the Group 7 7

Healthcare – Strong platform continues to deliver growth H1 2019 Maternity & Long-term & Operation & Total Multispecialty Fertility Home care Management Healthcare No. of Countries 4 11 2 10 20 Revenue (US$ ‘000) 695,975 164,495 82,567 14,650 957,687 % Growth (YoY) 33.6% 43.9% 30.8% 89.1% 35.7% % of Healthcare revenue 72.7% 17.2% 8.6% 1.5% - Revenue / patient (US$) 168 1,419 20,637 224 % Growth (YoY) 15.7% 32.4% 3.4% 16.8% Capacity Licensed beds 1,599 106 502 2,207 % Growth (YoY) 16.5% 0.0% 3.5% 12.4% Operational beds 1,395 100 427 1,922 % Growth (YoY) 26.4% 0.0% 31.0% 25.6% % Spare capacity 13% 6% 15% 13% Patients 3,905,390 115,889 4,001 4,025,280 % Growth (YoY) 17.0% 8.7% 26.5% 16.7% % Bed occupancy 61.2% 79.7% 86.1% 67.7% 8 8

NMC UAE Business Continues to Achieve Year over Year Growth 6.7% and 6.2% YoY total patient growth seen in Abu Dhabi and Dubai regions NMC Specialty Hospital, Al Nahda NMC Royal Hospital, Khalifa City NMC Royal Hospital, DIP   32% yoy growth in outpatient volume and 54% yoy increase in cardiac surgeries volume  13% yoy growth in outpatient volume and 30% yoy  11.5% yoy growth in inpatient volume 8% yoy increase in inpatient volume growth in inpatient volume  Exclusive MOU with Dubai Corporation  Hub of centralization initiatives -laboratory, CSSD, Ambulance Services CV services  Launched the Centre for Digestive Diseases  Over 300 critical patients received under 999 Emergency contract since March 2019  14.8% yoy growth in pediatric outpatient services Dubai NMC Specialty Hospital, Abu Dhabi  13% yoy growth in outpatient volume  Recognized as COE in Hernia Surgery and Gastroenterology by Asia Pacific Hernia Society and World Endoscopy Society respectively NMC Specialty Hospital, Al Ain Abu Dhabi NMC Ruwais Hospital  Received the Best Vendor Award for the 3rd time for the management of UAE  71% reduction in average OPD waiting time University project   43% reduction in average pharmacy turnaround 8% yoy increase in Emirati patients time  16% decline in annual expenses resulting in savings of $13mn against budget Dubai facilities have been practicing shadow billing for 18 months and are fully equipped to handle the upcoming changes from DRG implementation 9 9

Highly profitable O&M vertical reaps benefits in multiple areas In H1 19, we have dedicated additional senior leadership resources generating O&M income of US$15m (with 70-80% net profit conversion), as believe we have the capacity and capability to continue sourcing O&M opportunities across the region Additional O&M benefits Distribution revenue in Pharmacy, Consumables and Devices, and Turnkey projects for Medical Equipment Supply Data management through the use of our own IT software Optimization of Infrastructure by reduction of CapEx Cost optimization and revenue enhancement in various areas through cross utilization of resources Major O&M Contracts Ministry of Presidential Affairs Abu Dhabi National Oil Company Emirates Hospital Group UAE University 10 10

Operational Highlights: ProVita and CosmeSurge Provita / LTC CosmeSurge Launch of 2 new facilities (Bareen & NMC Ruwais) with 5 19% yoy growth in patient volume across UAE upcoming units in H2 2019 and 2020 Impressive yoy growth in patient volume across all 142 operational beds in UAE (14% yoy growth) facilities +80 additional bed capacity in UAE and Oman by H1 2020 Launched new service lines and technology 11 11

NMC Fertility: From Spain to IVF around the Globe NMC’s Fertility business has transformed from a two clinic situation in 2015 to become the largest and most diverse network of fertility clinics in the world NMC’s solid expertise in Europe, coupled with inhouse resources, operational expertise and clinical research serve as the right ingredients for the group’s global expansion A conglomeration of over 70 fertility clinics with a pan continental presence across Europe, GCC, East Africa, Latin America and North America 12 12

Fertility business – Key Operational Highlights Our European clinics continue to leverage its capacity and expertise as the world’s largest oocyte donation program, Fakih IVF continues to be the leading provider of fertility services in the GCC region with the opening of cross border links from Spain between Denmark, Italy, Sweden and Latvia • Fakih IVF Oman has become the preferred infertility Launched Eugin Education which encompasses: treatment partner for MOH Oman IPC (International • EBART congresses every two years Patient Care) Department, Oman Royal Police and GHQ • Campus EBART every six months (Ministry of Defence) • Masters Degree in Human ART • Collaboration with Cleveland Clinic Abu Dhabi oncology Reached global agreements with 2 top industry suppliers to department for fertility preservation through leverage on Group’s purchasing capacity cryopreservation Created a global R&D program, consolidating the activities of Introduced the ROSI (Round Spermatid Injection) treatment, more than 25 full-time equivalents (FTE) dedicated to R&D an innovative method to enhance the success rate for male worldwide producing around 40 studies and 150 active patients communications per year in 175 congresses 13 13  Recognized

NMC Healthcare KSA – Updates and Milestones  Over 300,000 patients were seen across KSA  The average occupancy rates across all KSA legacy portfolio assets is above 75%  CCSMC in Jeddah continues to outperform expectations, with 96% occupancy, additional service lines, and licensing of additional beds  Salam Hospital Riyadh has rebranded to NMC Specialty Hospital, and improved occupancy rates from less than 40% to 76% Progress on Synergies Improved Corporate Structure  Cross-clinical resource program involving  Appointment of key new personnel: COO & sharing and utilization of existing clinical CFO resources  Ongoing centralization of all key functions  Centralization of procurement functions and including HR, treasury, finance, marketing, standardization of suppliers is progressing and RCM well  The restructuring of CARE board is in  Key support staff from UAE have been process and the Annual General Board deployed to aid and expedite the integration meeting has been scheduled for 15 th process with CARE September  NMC Trading is helping replicate the UAE cost optimization benefits model 14 14