Capital Markets Day Presentation November 2017
Disclaimer This information contained in the Capital Markets Day Presentation has been prepared by NMC Health and was compiled from sources believed to be reliable for informational purposes only. Prospective and existing investors should make their own evaluation of the company as the information provided here does not purport to be all inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the date set forth in this information. NMC Health makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to NMC s businesses and operations. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. Many actual events and circumstances are beyond the control of the Company. 2
Agenda 1 Welcome note from the CEO 2 NMC Healthcare Managing rapid growth 3 NMC Fertility Building a global business 4 NMC Distribution Capitalizing on synergies with Healthcare 5 Q&A 3
Changing lives and impacting society positively 4
Agenda 1 Welcome note from the CEO 2 NMC Healthcare Managing rapid growth 3 NMC Fertility Building a global business 4 NMC Distribution Capitalizing on synergies with Healthcare 5 Q&A 5
Institutionalizing the business Focus on maintaining operational excellence Drive organisation culture Oversee quality, safety and patient satisfaction Oversite of financial expectations through oversight of operations Oversight of healthcare operations Manage relationships with regulatory agencies Mitigate risks and potential barriers to success Physician relations 6
Philosophy and methodology Enhancing NMC s current leadership framework by introducing concepts acquired from extensive experience in the US and UAE Maintain NMC s strong Abu Dhabi legacy while introducing a more western approach to organizational structure and decision making Create a corporate leadership hierarchy that focuses on the five pillars needed for our long term success: Cost, quality, service, growth, and people New management structure introduced to decentralize decision making Operational clusters created within the UAE and broader Middle East to empower front line leadership to control their business The new structure eliminates hurdles to quick decision making at the ground level and streamlines operations Previously higher level decisions regarding HR, operations, and business development were elevated to the corporate leadership Committed to evaluation of existing operational leadership across all portfolios and making changes if necessary 7
New corporate structure CEO Prasanth Manghat COO-Healthcare Michael Davis COO-Distribution Nirman Shetty Head of IVF Prakash Janardan Director Corporate Services Ravi Rai CFO Prashant Shenoy CMO Dr. C R Shetty CIO Hani Buttikhi Dy. COO Distribution Head of Clinica Eugin Head of Fakih IVF Business development Regional Head Abu Dhabi and Al Ain Regional Head Dubai and Northern Emirates Head Outside of UAE Head of Operations Abu Dhabi, Al Ain and Dubai Head of Operations Sharjah, Oman, Kuwait and Qatar Head of Operations Saudi Arabia Head of Human Resources and Personnel Head of Marketing and Sales Head of Quality Head of Nursing Investor Relations Corporate Development Mergers and Acquisitions Dy. CFO accounts and audit Dy. CFO banking and treasury AVP corporate finance IT 8 Note: Brand strategy and communication strategy will report functionally to CEO
Substantial segment and geographic diversification MULTI-SPECIALITY NETWORK 01. NMC Specialty Hospital Abu Dhabi 02. NMC Day Surgery 1 Mohammed Bin Zayed City MATERNITY & FERTILITY 17. Brightpoint Royal Women's Hospital 1 Abu Dhabi (Opened 2014) 18. Clinica Eugin 2 Spain (Acquired 2015) 26. Emirates Healthcare Dubai 27. Sheikh Khalifa Hospital Yemen DISTRIBUTION 35. NMC Warehouse DIC, Dubai 36. NMC Warehouse Ajman Ajman 03. Dr. Sunny Referral Network Sharjah (Acquired 2015) 19. Fakih IVF UAE (Acquired 2015) 28. NMC Sales and Marketing Office Abu Dhabi 04. NMC Royal Hospital 1 Khalifa City (Opened 2015) 05. NMC General Hospital 1 Dubai Investments Park (Opened 2014) 06. B.R. Medical Suites DHCC 07. NMC General Hospital Deira, Dubai 08. NMC Specialty Hospital Dubai 09. NMC Medical Centre Sharjah 10. NMC Specialty Hospital AI Ain 11. NMC Medical Centre 1 Al Ain (Opened 2014) 12. American Surgecenter Abu Dhabi 13. Al Zahra Hospital Sharjah (Acquired 2016) 14. Atlas Healthcare Muscat, Oman (Acquired 2017) LONG-TERM & HOME CARE 20. Provita Abu Dhabi (Acquired 2015) 21. Provita Al Ain (Acquired 2015) 22. Americare Abu Dhabi (Acquired 2015) 23. As Salama Saudi Arabia (Acquired 2016) 24. Chronic Care Saudi Arabia (Acquired 2016) OPERATION & MANAGEMENT 25. Sheikh Khalifa General Hospital (Operator) Umm al Quwain 16 24 23 SAUDI ARABIA 29. NMC Sales and Marketing Office AI Ain 30. NMC Sales and Marketing Office Dubai and Northern Emirates 31. NMC Warehouse Mina. Abu Dhabi 32. NMC Warehouse AI Ain 33. NMC Warehouse DIP, Dubai 34. NMC Warehouse Al Quoz, Dubai 18 25 36 Umm Al Quwain 13 09 Sharjah 35 30 07 08 03 01 33 05 32 19 26 Dubai UNITED ARAB EMIRATES 15. Najran Hospital Saudi Arabia (Acquired 2017) 16. Ha il Hospital Saudi Arabia (Acquired 2017) 15 YEMEN 28 31 22 17 12 06 04 20 02 Abu Dhabi Al Ain 10 21 11 34 29 OMAN 14 27 9 9 1. Funded from IPO proceeds 2. Also has operations in Italy, Denmark, Brazil and Columbia
Operational integration Gelling the new with the old Rapid pace of acquisitions necessitates a pro-active role to balance the differences in cultures across the various entities Distribution Multi-specialty network Corporate & local culture Operations & Management Long-term & Home Care Maternity & Fertility Leadership & strategic vision Dedicated in-country specialists Well positioned to manage growth across further geographies 10 10
Operational integration The next phase Continuing the next phase integration of newly acquired assets whilst becoming the employer of choice in the healthcare sector Integration of culture Rolling up newly acquired assets under broader leadership to complete integration of culture Source out further efficiency opportunities Examples: ProVita / Americare, Nadia Medical Centre/ Brightpoint Royal Back office rationalisation Consolidation and rationalisation of back office functions across the portfolio Examples: NMC Sharjah, Al Zahra Hospital and Dr. Sunny Healthcare & ProVita, Americare, Emirates National Home Health Employer of choice Focus on people & culture greater alignment with employee incentives (birthday leave and tickets home) Implementation of performance management system 2016 2017 Top Companies to Work for in the UAE ProVita, Abu Dhabi & Al Ain Americare, Abu Dhabi Brightpoint Royal Woman s Hospital, Abu Dhabi Nadia Medical Centre, Abu Dhabi Al Zahra Hospital, Sharjah New Medical Centre, Sharjah Dr Sunny Healthcare, Sharjah 11 11
Operational integration Optimizing existing assets Cross referrals Lab, laundry and pharmacy centralisation Back office consolidation Sales and marketing Right size organisation CONTINUED FOCUS ON OPTIMIZATION Increasing accountability Firm negotiation of rates Minimization of insurance rejection rates a key focus area 12 12
Operational integration Identifying the right traits for acquisition Rigorous but efficient evaluation and execution process How do we assess potential assets in KSA? Targeting pole position in the Omani Market Alignment with strategic verticals in attractive market Cultural fit with existing leadership teams and shareholders Focus on providing solid clinical care or providing clinical services that are underserved within given geography Track record of operational efficiency with upside potential Underpenetrated market with strong demand drivers Rebranded NMC portfolio Clinically stable and profitable asset base from which to expand upon Navigating the Saudi market Knowledge and expertise gained by being on the ground Oman private healthcare sector market share Investment philosophy focused on opportunity and relative value 100 beds 20% market share Comprehensive due diligence 13 13
Agenda 1 Welcome note from the CEO 2 NMC Healthcare Managing rapid growth 3 NMC Fertility Building a global business 4 NMC Distribution Capitalizing on synergies with Healthcare 5 Q&A 14 14
Getting pregnant is not that easy Variety of causes Ovulation problems 35% Others 45% Sperm production temporarily decreased Sperm obstruction 1 out of 6 every attempts results in pregnancy Blockage of Fallopian Tubes 15% 33% Endometriosis 5% Unknown causes 14% Low sperm count External causes 20% 33% Low mobility Malformed sperm with options decreasing over time 86% 78% 63% 52% 36% 0% 5% 20-24 25-29 30-34 35-39 40-44 45-49 50+ AGE 15 15
NMC Fertility: A globally leading, premium provider of fertility treatment NMC Fertility is the second largest player in fertility treatments globally and has a network of clinics to access patients across 3 continents 7 clinics in Europe 4 clinics in GCC 5 clinics in LatAm Full range of fertility treatments Specialized in Sharia-compliant treatment Covering a wide range of patients and offering donor cycles NMC Fertility platform has a differentiated positioning adapted to each of its markets Competitive pricing combined with medical excellence and scientific rigor with Eugin in Europe Mid-to-high end positioning in LatAm combining local doctors reputation and Eugin/Huntington brands High-end positioning for a premium clientele with Fakih in the GCC 16 16
A global fertility platform with leading presence in core markets 1 2 3 4 5 6 7 8 Fakih Dubai Fakih No. of clinics: 1 Fakih Abu Dhabi Fakih No. of clinics¹: 2 Eugin Spain Eugin No. of clinics: 2 CIRH Eugin No. of clinics: 1 Eugin Italy Eugin No. of clinics: 3 CFC Denmark Eugin No. of clinics: 1 Eugin Colombia Eugin No. of clinics: 1 Huntington Eugin No. of clinics: 4 Current Eugin s presence Current Fakih s presence Key markets Ranking #2 #1 #1 #1 #1 Market share (by # of cycles) NMC Fertility 8% 6% 11% 36% 7% Combined top 3 players 42% 11% 28% 56% 18% Source: NMC Health estimates 17 17
Significant opportunity for a global leader to consolidate the fast growing fertility treatment market Top 5 players account for only c.5% global market share in a fast growing market projected at c.us$21bn by 2020 Combined top 5 players market share by number of cycles (2016): Global fertility services market (US$bn) 1 : EMEA Americas APAC 20.8 CAGR 2.6m IVF cycles globally 5% 13.7 3.4 5.3 6.6 +9.7% +8.1% 4.5 5.9 8.9 +8.6% 2015A 2020E Source: Technavio Global Fertility Service Market 2016-2020 1 Market sizes cover the global fertility services market (including infertility drugs and services in Assisted Reproductive Technology) 18 18
Multi-dimensional platform well positioned for further expansion Development of pan-continental presence across the Middle East, Europe and the Americas provides scale and flexibility to drive quality, access to treatments and innovation 1 2 3 4 5 Patient referrals and transfers within the Group Comprehensive range of fertility treatments Expertise in opening and integrating new clinics Global R&D collaborations and network Deep knowledge of all regulatory frameworks Our patients can choose to receive treatment at any facility in any country Egg, sperm and embryo movement between the clinics Transforming Europe s largest egg donation program into a global program with diversity of phenotypes Offering shariacompliant services in relevant markets Successful integration of acquisitions Track record of organic openings R&D collaborations with over 15 institutions Medical committees of renowned IVF practitioners and scientific leaders Ability to optimize use of legislations and provide innovative solutions to patients Cross-border embryo transfer 19 19
Agenda 1 Welcome note from the CEO 2 NMC Healthcare Managing rapid growth 3 NMC Fertility Building a global business 4 NMC Distribution Capitalizing on synergies with Healthcare 5 Q&A 20 20
Verticals of operations Pharma One of UAEs largest teams of medical & sales reps Visiting over 30,000 licensed doctors in UAE monthly Selling to all 1,500 pharmacies, 150 hospitals and >1,000 medical centers and clinics Medical Equipment, Consumables and Devices Solutions to the healthcare industry including Primary, Surgical, Specialty &Critical Care, Laboratory and Radio diagnostics, Medical Furniture and Rehabilitation Selling to all 1,500 pharmacies, 150 hospitals and >1,000 medical centers and clinics Veterinary Providing feed, care, grooming and medical solutions to stables, dairies, poultries, vet clinics and hospitals Consumer Education One of UAEs largest FMCG products distributor across personal care, food, beverages, household care and home improvement >7,000 points of sale across supermarkets, groceries, gas stations, hotels, cafes, wholesalers Solutions for schools including furniture, sports equipment, study aids, lab & ICT equipment 21 21
NMC Trading overview Sales One of the largest sales forces with a single company in the UAE Sales team of >750 professionals Value added services to establish and grow brands in the UAE market Over 10,000 customers (1,000 clinics, medical centers & hospitals, 30,000 doctors, 1500 pharmacies, 500 schools, >7,000 supermarkets, groceries, gas stations Technical Service Wide range of premier medical equipment services Authorised Service Provider (ASP) certification from multiple partners Two Specialised Biomedical Engineering Workshops with certified safety, testing and calibration analysers Marketing Focus on below the line marketing activities Typically happen at points of sale & at consumer hubs Methods include: maximizing visibility & share of shelf at point of sale, new brand launches and offer packs, retail event calendar participation Merchandizing With >400 people, one of UAEs largest teams of merchandisers Key methods include availability and visibility of products on shelf, execution of planograms, POS communications, minimize stock returns Promotions Build brand awareness by educating customers Undertake trials via dry and wet sampling for food products, organizing special promotional events such as screening camps within companies Regulatory Strong regulatory team for each vertical taking care of all compliance issues Helps partners comply with the respective regulator - municipalities, ministries & chambers of commerce Warehousing >500,000 sq ft of warehousing across the UAE Capacity of over 40,000 pallets Multiple temperature ranges including cold chain State of the art put away and pick systems minimize turnaround times and reduces error rates Analytics Investment in analytic capabilities allowing faster insights than competitors Key areas include customer channel penetration, value and order frequency, SKU product analysis, return on marketing investments, customer service reports Delivery 48-hour order to delivery commitment for all verticals Delivers >2,000 orders a day Over 250 delivery vehicles all GPS enabled allowing realtime tracking, status of delivery targets and vehicle status 22
Agenda 1 Welcome note from the CEO 2 NMC Healthcare Managing rapid growth 3 NMC Fertility Building a global business 4 NMC Distribution Capitalizing on synergies with Healthcare 5 Q&A 23 23