Al Hammadi Holding · TADAWUL:4007
Al Hammadi — Investor Presentation (2023)
50 slides from Al Hammadi's investor presentation, 2023
Slide 1: Investor Presentation FY 2022
Al Hammadi Holding Investor Presentation FY 2022
Slide 2: Table of Contents
Table of Contents I II III VI About Al Hammadi Investment FY 2022 Appendix Holding Highlights Results Overview
Slide 3: About Al Hammadi Holding
About Al Hammadi Holding
Slide 4: Al Hammadi is an integrated healthcare company and premier hospital operator
Al Hammadi is an integrated healthcare company and premier hospital operator providing world-class healthcare services to hundreds of thousands of local and foreign residents… An Integrated Healthcare Company 78%1 22%1 The company currently operates two hospitals in the Saudi Arabian capital, housin
Slide 5: Four-decade track record of success and plans for future expansion
…with a four-decade track record of sustained success and solid plans for future expansion to match fast-growing demand in Riyadh Al Hammadi’s Olaya facility The Group The Group’s Olaya Planned Olaya facility is expansion sees launches its third branch is reopening of launched with a hospital reach
Slide 6: Strong bottom-line expansion in FY 2022
Al Hammadi delivered strong bottom-line expansion in FY 2022 on the back of rapid revenue growth and efficient cost optimization measures Revenue Gross Profit Operating Profit Net Profit SAR 1,122 Million SAR 416 Million SAR 292 Million SAR 257 Million FY2022 (▲17.9% y-o-y) FY2022 (▲14.3% y-o-y) FY2
Slide 7: Investment Highlights
Investment Highlights
Slide 8: Investment Highlights
Investment Highlights 1 2 3 4 5 Favorable Market Robust Business A Track-Record of A Targeted A Responsible Business Conditions Model Success Strategy Operating in a dynamic urban market with strong fundamentals and significant growth potential Al Hammadi Holding Investor Presentation 8
Slide 9: Dynamic urban market with strong fundamentals and supportive regulation
Operating in a dynamic urban market with strong fundamentals and a supportive regulatory environment… Home to an ageing population and a rising And backed by increased government focus on As well as heightened interest in boosting prevalence of non-communicable diseases… healthcare development… priv
Slide 10: Hospitals strategically located in Riyadh, an attractive growing city
The Group’s hospitals are strategically located in Saudi Arabia’s capital, Riyadh, an attractive city increasingly at the heart of the country’s growth story… While Riyadh is growing at a faster rate than the entire Kingdom… …the city’s healthcare offering lags behind international averages… Riyadh
Slide 11: Positioned for rising demand from an increasingly insured population
…and well positioned to cater to the rising demand from an increasingly insured population The Council of Health Insurance organized several events to encourage …and is set to further increase initiatives over coming years increased participation in private health insurance… Supporting initiatives S
Slide 12: Investment Highlights
Investment Highlights 1 2 3 4 5 Favorable Market Robust Business A Track-Record of A Targeted A Responsible Business Conditions Model Success Strategy Boasting strategically placed hospitals around Riyadh capturing a wide patient base and attractive growth potential across adjacent segments Al Hamma
Slide 13: Proven business model keeping the Group ahead of the competition
The Group’s proven business model has enabled it to remain a step ahead of the competition and build the Al Hammadi brand into an industry leader in Riyadh... Leading Hospital Growing Presence in Attractive Exposure to Geographically- Robust Centralized Operator Adjacent Segments Patient Classes Foc
Slide 14: Widespread coverage spanning the entire Saudi capital
…and enjoys widespread coverage spanning the entire Saudi capital Al Narjis Hospital2 4 Al Nuzha Hospital 3 Al Hammadi boasts two operational state-of-the-art facilities, Al Nuzha and Al Suwaidi hospitals, strategically located in the heart Riyadh Olaya Hospital1 of Riyadh, with a third hospital, Ol
Slide 15: Two premier hospitals in the heart of Riyadh
Al Hammadi operates two premier hospitals in the heart of Riyadh providing a wide range of world-class services to thousands of patients Patient Class Mix Patient Class Mix Al Nuzha Hospital 2022 Al Suwaidi Hospital 2022 Located in the northeast neighborhood of Launched in 2015 and located in southw
Slide 16: Expanding presence in adjacent segments for holistic care
The Group is focused on expanding its presence in adjacent segments to provide holistic care for its patients and diversify its revenue mix Pharmacy Services Vaccine Distribution Facility Management Al Hammadi has investments in In addition to its pharmaceutical services, Al In-House Online Services
Slide 17: Centralized back office for procurement, collection and recruitment
The Group’s administrative operations are conducted through a centralized back office, enabling efficient procurement, strong collection rates, and effective recruitment Efficient Procurement System Creating long-lasting relationships with key equipment manufacturers Employing centralized procuremen
Slide 18: Experienced medical professionals and training programs
The Group employs experienced medical professionals and offers a range of training programs to maintain stellar service and superior medical outcomes New Employee Training Methods Existing Employee Professional Development Comprehensive onboarding providing smooth Scheduled training programs in all
Slide 19: Investment Highlights
Investment Highlights 1 2 3 4 5 Favorable Market Robust Business A Track-Record of A Targeted A Responsible Business Conditions Model Success Strategy Nearly four decades of sustained success as healthcare facility operators in the Saudi capital Al Hammadi Holding Investor Presentation 19
Slide 20: Consistent operational growth in patient numbers
The Group consistently delivers operational growth leveraging an expanded footprint and service offering to attract and retain an increasing number of patients to its facilities Number of Outpatients| ‘000 - CAGR Number of Inpatients| ‘000 - CAGR 6.7% CAGR 11.9% CAGR 1,038.5 974.1 930.8 45.0 121.9 4
Slide 21: Strong consistent revenue and net profit growth over five years
Al Hammadi has achieved strong and consistent revenue and net profit growth over the past five years Revenues | SAR mn - CAGR Gross Profit – GPM | SAR mn, % - CAGR 5% CAGR 11% CAGR 38% 37% 35% 29% 28% 1,122 974 992 952 893 416 351 364 250 282 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Operati
Slide 22: Widespread growth across operating hospitals
Growth has been widespread with both operating portfolio hospitals consistently recording double-digit growth… Al Nuzha Hospital Al Suwaidi Hospital Pharmaceuticals Olaya Hospital2 Revenue Revenue Revenue Revenue 367 278 503 349 313 406 259 206 251 251 342 226 225 231 213 160 194 81 76 2018 2019 202
Slide 23: Investment Highlights
Investment Highlights 1 2 3 4 5 Favorable Market Robust Business A Track-Record of A Targeted A Responsible Business Conditions Model Success Strategy Al Hammadi deploys strategies aimed at increasing the Group’s footprint across Riyadh, access new patient segments, and diversify its revenue mix Al
Slide 24: Multi-pronged growth strategy to increase market penetration
Al Hammadi employs a multi-pronged growth strategy aimed at increasing its market penetration, expanding its service offering, and cementing its leading position in Riyadh Launch of New Optimizing Revenue Growing Pharmacy Maintaining Capacity Expansions Specializations Mix Business Outstanding Quali
Slide 25: Growth plans to add 600 rooms and 360 clinics by 2030
The Group’s ambitious growth plans will see it add 600 rooms and 360 clinics by 2030 to capitalize on the city’s growing healthcare demand Al Suwaidi Hospital Olaya Hospital Al Narjis Hospital Fifth Hospital (Northwest Riyadh) Al Hammadi is looking to Originally launched in 1985, The Group plans to
Slide 26: Launching new specializations to cater to the patient base
Al Hammadi constantly monitors shifting demand dynamics in the Riyadh market and launches new specializations to better cater to its patient base New Centers of Excellence Launching Across Al Hammadi’s New Facilities Rehabilitation Plastic Surgery Oncology Sports Medicine New Services Selection Crit
Slide 27: Broadening and optimising the patient base
Al Hammadi is looking to further broaden, diversify and optimise its patient base to boost its resilience, profitability and receivables profile Premiumization In order to attract class A/VIP patients, Al Hammadi has recently completed the premiumization of its Al Class A/VIP & Cash Nuzha Hospital,
Slide 28: Growing in adjacent healthcare segments and diversifying revenue mix
The Group is focused on growing in adjacent segments of the healthcare industry, diversifying its revenue mix, and developing its one-stop-shop model In line with its vision of diversifying its revenue mix and providing a one-stop-shop Retail Pharmacies for its patients from Online Services examinat
Slide 29: Monitoring quality standards and renewing international accreditations
The Group employs regular monitoring of quality standards to ensure sustained provision of world-class service and the successful renewal of its international accreditations Accreditations A dedicated Quality Assurance team constantly monitoring all hospital practices Monitoring Framework 19 Over 14
Slide 30: First private facility in Riyadh to earn ACC accreditation
The Group’s ability to consistently deliver high quality services in line with global best practices has seen it become the first private facility in Riyadh to earn the prestigious ACC accreditation American College of Cardiology Accreditation American College of Cardiology Accreditation Al Nuzha Ho
Slide 31: Investment Highlights
Investment Highlights 1 2 3 4 5 Favorable Market Robust Business A Track-Record of A Targeted A Responsible Business Conditions Model Success Strategy Al Hammadi is committed to serving its community through a variety of environmental and social initiatives, and is governed by an experienced board a
Slide 32: Environmental and social initiatives giving back to the community
The Group spearheads a variety of environmental and social initiatives geared towards giving back to the community it serves 2022 Environmental Initiatives 2022 Social Initiatives Female Empowerment Al Hammadi is a proud champion of female empowerment, implementing Electricity Consumption female-spe
Slide 33: Best-in-class governance frameworks
The Group adheres to best-in-class governance frameworks ensuring the business operates responsibly and delivers the promised value to all stakeholders Mr. Saleh Mohammed Al Hammadi Chairman of the Board of Directors Mr. Saleh Mohammed Al Hammadi is the Chairman of the Board of Directors of Al Hamma
Slide 34: FY 2022 Results Overview
FY 2022 Results Overview
Slide 35: FY 2022 Results Snapshot
FY 2022 Results Snapshot Al Hammadi continued delivering strong top-line growth and improving profitability Revenue Gross Profit Operating Profit Net Profit SAR 1,122 Million SAR 416 Million SAR 292 Million SAR 257 Million FY2022 (▲17.9% y-o-y) FY2022 (▲14.3% y-o-y) FY2022 (▲122.3% y-o-y) FY2022 (▲1
Slide 36: FY 2022 Operational Review
FY 2022 Operational Review Sustained y-o-y growth in outpatient and inpatient volumes continue to support Group-level revenues. Solid growth in volumes came despite the temporary closure of Olaya Hospital at the end of 2021 Inpatient Admissions | ‘000 Outpatient Examinations| ‘000 ▲11% ▲6% 45.0 1,03
Slide 37: FY 2022 Consolidated Financial Performance (I/II)
FY 2022 Consolidated Financial Performance (I/II) Top-line growth on an upwards trajectory, backed by strengthening hospitals performance Revenues maintain growth trend, with insurance proportion of overall revenues increasing Average Revenue per Patient Revenues | SAR Mn Revenues | SAR Mn 825 (excl
Slide 38: FY 2022 Consolidated Financial Performance (II/II)
FY 2022 Consolidated Financial Performance (II/II) Al Hammadi has continued delivering strong top-line growth and increased profitability Cost optimization measures leading to lower general and operating expenses and directly contributing to improved margins Cost of Revenue | SAR Mn Gross Profit & G
Slide 39: FY 2022 Consolidated Financial Performance (II/II)
FY 2022 Consolidated Financial Performance (II/II) Al Hammadi has continued delivering strong top-line growth and increased profitability Net Profit from Continued Operations | SAR Mn Net Profit | SAR Mn 22.9% 22.9% 21.5% 21.5% 17.0% 10.4% 13.0% 9.5% 3.8% 3.8% 257 257 130 130 99 90 74 74 11 11 FY202
Slide 40: Al Nuzha Hospital: FY 2022 Performance
Al Nuzha Hospital: FY 2022 Performance Continued top-line growth supported by rising inpatient and outpatient volumes Strong operational expansion leveraging Al Hammadi brand equity across Riyadh Outpatient Examinations | ‘000 Inpatient Admissions | ‘000 41.0% CAGR 47.9% CAGR 642.6 26.0 520.7 21.0 3
Slide 41: Al Suwaidi Hospital: FY 2022 Performance
Al Suwaidi Hospital: FY 2022 Performance Continued top-line growth supported by both patient segments Strong operational expansion leveraging Al Hammadi brand equity across Riyadh Outpatient Examinations | ‘000 Inpatient Admissions | ‘000 5.8% CAGR 10.3% CAGR 18.9 396.0 336.2 15.8 298.9 312.5 14.2 1
Slide 42: Pharmaceuticals: FY 2022 Performance Review
Pharmaceuticals: FY 2022 Performance Review Pharmaceutical sales at the company’s hospitals and through its subsidiary Pharma Serve accounted for 22% of consolidated revenues in FY 2022, remaining largely unchanged from FY 2021 Revenue from In-House Pharmacies| SAR Mn Revenue from Pharma-Serve| SAR
Slide 43: Appendix
Appendix
Slide 44: FY 2022 Consolidated Income Statement
FY 2022 Consolidated Income Statement SAR mn Q4 2021 Q4 2022 % FY 2021 FY 2022 % Revenue 219.9 342.6 21.6% 951.9 1,122.4 17.9% Cost of revenue (173.3) (213.7) 23.4% (587.8) (706.4) 20.2% Gross Profit 108.5 128.9 18.8% 364.0 416.0 14.3% GPM 38.5% 37.6% -0.9 pts 38.2% 37.1% -1.1 pts Selling and market
Slide 45: FY 2022 Consolidated Balance Sheet
FY 2022 Consolidated Balance Sheet SAR mn 31 December 2021 31 December 2022 ASSETS Non-current assets Property and equipment 1,546.9 1,606.2 Advance payments for acquisition of property and equipment - 95.8 Intangible assets and goodwill 32.2 28.5 Investment in associates 120.3 124.2 Total non-curre
Slide 46: FY 2022 Consolidated Statement of Cash Flow
FY 2022 Consolidated Statement of Cash Flow SAR mn 31 December 2021 31 December 2022 OPERATING ACTIVITIES Net profit for the period 90.1 257.3 Adjustments for non-cash items Depreciation on property and equipment and right of use assets 105.2 96.7 Amortization of intangible assets 4.2 3.7 Losses on
Slide 47: Experienced management team (I/II)
Al Hammadi is led by an experienced management team with a wide range of medical and managerial expertise (I/II) Mohammed Al Hammadi Abdul Aziz Saleh Al Mohammed Al Saafeen Chief Executive Officer/ Hammadi Chief Financial Officer Managing Director Chief Operating Officer Bio: A seasoned executive wi
Slide 48: Experienced management team (II/II)
Al Hammadi is led by an experienced management team with a wide range of medical and managerial expertise (II/II) Majid Al Nahdi Kamar Khalifa Human Resources Manager Quality Manager Bio: Serving as HR manager since 1999, Mr. Majid has extensive experience in the Bio: She has been serving as Group Q
Slide 49: Board of Directors Biographies (I/II)
Board of Directors Biographies (I/II) Mr. Saleh Mohammed Al Hammadi Dr. Abdul Aziz Mohammed Al Hammadi Chairman of the Board of Directors Vice Chairman of the Board of Directors Bio: Mr. Saleh Mohammed Al Hammadi is the Chairman of the Board of Directors of Al Bio: Dr. Abdul Aziz Saleh Al Hammadi is
Slide 50: Board of Directors Biographies (II/II)
Board of Directors Biographies (II/II) Dr. Ahmed Ibrahim Mr. Aziz Mohammed Al- Mr. Fahd Suleiman Al- AlSagheir Qahtani Nahat Independent Member Independent Member Independent Member Bio: A seasoned healthcare management executive, Dr. Ahmed Bio: Mr. Aziz is the Financial and Administrative Advisor t