AfroCentric Investment Corporation Limited · JSE:ACT
AfroCentric Investment — H1 2022 Earnings Presentation
26 slides from AfroCentric Investment's earnings presentation, 2022
Slide 1: Interim Results
INTERIM RESULTS 22 For the period July 2021 to December 2021
Slide 2: Agenda
Agenda Business context 1 Business highlights 2 Our business is focused on making a sustainable impact in the area Segmental performance review 3 we know best – healthcare. OUR Group financial highlights 4 BUSINESS INTERIM RESULTS HEALTHIER TOGETHER For period ended 31 December 2021 2
Slide 3: Business Context & Highlights
BUSINESS CONTEXT & HIGHLIGHTS Group CEO I Ahmed Banderker
Slide 4: COVID insights
COVID insights TOTAL SPEND ON PATHOLOGY TESTS 4th Wave Looking Scheme Client Insights Forward Considerations R2,1 bn • The State of Disaster • Scheme surpluses • The 4th wave has been should have been generated in 2021 significantly less severe relaxed were on average TOTAL SPEND • 4th wave • Allow
Slide 5: Vaccine effectiveness
Vaccine effectiveness Developments | Hospitalisations Per 10,000 unvaccinated Per 10,000 partially Per 10,000 fully lives vaccinated lives vaccinated lives IMPACT 18 (0.18 %) ADMISSIONS 8 (0.08%) ADMISSIONS 2 (0.02%) ADMISSIONS Impact of the 4th wave was less severe. 55% fewer admissions 87% fewer a
Slide 6: Emerging health trends following Covid
Emerging health trends following Covid Virtualisation of Health Home-Based Care The Role of Nurses (Primary Care) Pharmaceutical Supply Chain INTERIM RESULTS HEALTHIER TOGETHER For period ended 31 December 2021 6
Slide 7: Delivering value to our scheme clients
Delivering value to our scheme clients Annualised Health Risk Management Savings R4.43 billion* *Annualised ENHANCING ACCESS TO CARE Savings per member per month *Estimation annualised using Jan - Sep 2021 R230 INTERIM RESULTS HEALTHIER TOGETHER For period ended 31 December 2021 7
Slide 8: 2022 Interim business highlights
2022 Interim business highlights Solid financial performance despite challenging trading conditions Revenue R4 288.6m +10,0% Operating profit R535.5m +4,6% Headline earnings R154.5m +3,4% Normalised headline earnings R152.5m +0,3% 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 INTERIM RESULTS HE
Slide 9: Business update
Business update INTERIM PROGRESS UPDATE 1. Corporate 2. 3. New Business Retail Activity • 48% drop in anti-malaria sales • Famous Brands – On-site volume • Merging of Nedgroup clinics Medical Aid with Bonitas • 32% decrease in multivitamin • Coca-Cola beverages - HIV sales • Retained 14 000 of NMAS
Slide 10: Sanlam partnership
Sanlam partnership Business Solutions Offering Wellness Health Insurance Occupational Health Employee Assistance Programme Primary Healthcare Clinics Gap Cover “ Sanlam’s plan to launch new health insurance offerings “ with AfroCentric is perhaps the most exciting. - Paul Hanratty – Sanlam CEO INTER
Slide 11: Strategic appointments
Strategic appointments Fezeka Nompumza Managing Executive: Pharma Cluster Clinical Risk and Advisory Sandile Primary Care, Our clients and Appointed: Primary Health Mbhele Insurance & membership growth January 2022 Executive Director: Occupational Health AfroCentric Corporate Solutions Tebogo Makoe
Slide 12: www.sahealthcaresummit.co.za
www.sahealthcaresummit.co.za INTERIM RESULTS HEALTHIER TOGETHER For period ended 31 December 2021 12 12
Slide 13: Segmental Review & Financial Highlights
SEGMENTAL REVIEW & FINANCIAL HIGHLIGHTS Group CFO I Hannes Boonzaaier
Slide 14: Segmented operating profit and diversification drive sustained performance
Segmented operating profit and Diversification drive Sustained performance (R'000) Healthcare Services Healthcare Retail R496 Revenue YOY movement 4.2% R469 increase in Retail cluster revenue. Affected largely by CAGR R398 32% 34% non adherence to chronic medication R284 R295 32% +17.2% 14% 12% Heal
Slide 15: Normalised trading view excluding non-recurring items
Normalised trading view excluding non-recurring items Non-recurring events which occurred during the period to date: Vaccination programme investment (R25m) Impact of non adherence to chronic medication (R22m) Normalised trading view Normalised trading As reported Normalised trading As reported Unau
Slide 16: 3 year view of profit before tax
3 year view of profit before tax Operating profit IFRS 16 NET impact Net finance costs R'm R'm R'm -179% R535.5m 18% 4 6% 469 496 -50% 398 Dec 19 -53% Dec 20 365% Dec 21 Dec 19 Dec 20 Dec 21 ( 4) Group EBITDA ( 5) ( 9) (2020 – R511.8 m) Dec 19 Dec 20 Dec 21 ( 10) Operating profit stated after lease
Slide 17: Scheme membership
Scheme membership • Overall, membership is under pressure due to affordability and profile of members. • Steady growth from GEMS, but notable losses from various Closed Schemes. Scheme membership Distribution of beneficiaries by large schemes 3,9 2019 2021 3,8 3,8 3,8 2 035 3,6 1 892 880 841 508 492
Slide 18: Segmented financial reporting structure - Services
Segmented financial reporting structure-services - Services Medical Aid administration, Risk management & Technology: Concentrating on improving the operational delivery model of services Revenue Operating costs 2 129 1 799 Annotations 1 825 1 509 R 253 Denis R 270 Denis 1 359 1 628 R 132 Denis R 12
Slide 19: Scripts dispensed
Scripts dispensed Scripts dispensed Robotic Automation of the 1400 000 Ave DOH Scripts Ave PVT Scripts dispensary. Annualized saving on automation 1200 000 projected to be between 125 684 R8m to R10m in 2022/23 1000 000 financial year 162 636 Pharmacy Direct is 800 000 141 736 continually growing th
Slide 20: Retail Cluster operating profit
Retail Cluster operating profit Retail operating profit contribution Retail cluster product Activo & Scriptpharm mix diversification Pharmacy Direct strategy yielding 200 000 results. 150 000 33 170 Scriptpharm operating 16 699 9 477 profit growth of 98.6% lifted the overall retail 100 000 cluster p
Slide 21: Segmented financial reporting structure - Retail
Segmented financial reporting structure - Retail Pharma: Performance supported by diverse customer base in private and public sector. Revenue Operating Costs 2 500 Scriptpharm 2 500 Scriptpharm Annotations 2 000 2 000 Pharmacy Direct and Activo reduced adherence 1 500 1 276 1 369 1 500 1 140 1 235 b
Slide 22: Cash conversion cycle
Cash conversion cycle Pharmacy Direct MMED ACTIVO GROUP Benchmark Benchmark 101 Benchmark 101 22 45 160 200 40 140 180 35 160 120 30 140 100 120 25 80 100 20 60 80 15 60 40 10 40 5 20 20 14 17 11 13 22 40 17 36 71 133 90 91 92 126 96 136 119 111 139 183 175 173 174 187 - - - Dec 2021 June 2021 80,3
Slide 23: Statement of financial position
Statement of financial position Dec 2019 Dec 2020 Dec 2021 Working Capital 2021 2020 Inventory Significant Movements 331 392 461 0 100 200 300 400 500 1 564 33 807 648 Trade and other payables 1 396 1 551 96 1 405 - - -534 Goodwill Intangible assets Investment in Borrowings Deferred payment -565 ins
Slide 24: Group performance - investor dashboard
Group performance - investor dashboard 5 year Compound Description Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 annual growth rate Total Revenue (R’m) 2 038 2 307 3 111 3 898 4 289 20,4% Operating Profit (R’m)* 284 295 398 469 496 15,0% Group Operating Profit Margin (%) 13,9% 12,8% 12,8% 12,0% 11,6%
Slide 25: Sone
Sone
Slide 26: Q&A
Ic GROUP 5 2 < < Q&A
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