Q2 2026 MLP Saglik Hizmetleri AS Earnings Call
no excellence, and our approach to Excellence, uh, we have been taking steps with, uh, a lot of aliens and in order to increase our operational standards, as I have stated in the previous meeting, uh, we continue, uh, to, um,
Uh, work in the field of digitalization. Our technological Investments are uh uh, showing very strong risk stocks in our hospitals. We now have kiosks.
And uh, this has been a very successful project uh, at the moment about 70%, uh, of our patients registered there. Uh, kiosk. So, uh, we no longer need human resource, uh, for the registration. And these this is a very uh easy to use system and patients are able to register on their own.
Previously.
18 transaction, uh, used to take 7 to 10 minutes now. Uh, these can be done in several seconds and 7075 of our patients. Now are able to use the system.
And we have Integrations with insurance companies and Banks to this system. Um, we used to have millions of invoices that we had to process now. Thanks to these Integrated Systems. These are are being issued by agents.
And uh, and these are, um, things that are easier said than done.
Uh, we have been working on these systems for, uh, almost a year now. And, um, there is no other hospital system that, um, has put, uh, this level of Technology into use.
So, um, thanks to this operational Improvement. Uh, we, um, have gained a lot of, uh, advantages and, uh, we are able to process. Um, uh,
Uh many uh, patient operations, um, through these digital systems. And I uh, believe that I will uh be giving you some uh, other news in this field in the months to come. These obviously have a lot of positive impact on our Personnel costs and um,
so we are able to uh, reduce uh uh the costs related to all of these systems, which has really helped with our cost management while doing all of these
um,
Uh we have a very successful in mobile applications. A lot of our uh patience uh are now using our app.
And um and this has led to a new hospital design and it has um lifted us to a new level um in uh the hospital operation field. As I have said,
Um, this is led to a decrease in our work. Uh, the burden of work in our hospitals. Uh, our staff can now concentrate more on, um, other, uh, areas in the second half of 2025. Um,
uh, uh,
we uh, have had an improvement um, going from 24.5 to 30% and um
and uh, we uh
Uh, were, um, also working on, uh, the, um, development of these activities and to try to make it sustainable. And now, I can happily say that most of these improvements are sustainable.
And thanks to this uh operational planning.
Um,
We um, have preserved. Our budget forecasts.
Uh, we've had a 25% growth in our beta in the second half and we will continue with our real growth and I can clearly say that um that will be uh realized. And we've had uh we have set an Abita Target of 15%. I can uh readily say that we will be able to realize that and maybe even improve it to a certain extent.
In our group.
As you know, we continued to make investments.
and, uh, we have made plans for the
5 years. Uh, we are opening 2, new Greenfield hospitals each year.
And we will continue this journey in the years to come. These hospitals are Greenfield hospitals, and they are located in premium locations. They boast advanced technologies; they are integrated operations.
and this growth,
uh, will
Uh, will continue at this rate, um, for the next, uh, 5 years. Now, I would like to turn it over to our new CFO, Mr. Sedar. Bush solo.
uh, I'm sure you know him uh,
As our stakeholders. So over to him now,
Thank you, Maher. Ambe. Hello, once again.
We increased by 5.8%.
Looking at the chart on the right, in patients.
As you can see, in the quarter, we continue to benefit from the efficiency measures.
As Mariam Bay mentioned.
We started last year in the first half, almost all Mojo, coastlines, improved as a share of Revenue, Dr. Cost increased by only 42 basis points to 27.3%.
Of Revenue in the first half. The increase was
You know, when patients activity is typically lower.
Purpose. Uh, how about 151 points to 20.6% of revenue?
so cost, 12 by 136 points to 10.7%
Uh, helped by better Inventory management and patient mix. All Source Services cost improved by 21 basis points to 2.4% of Revenue, other costs including energy rent and marketing. Improved by 78 basis points to 9.8%,
At the overall listings, more than offset, the increase in doctor costs as a result, we delivered a strong. First of a margin of 29.2%,
Now uh, last week, uh, let's take a quick look at uh our deposition.
At the end of June net, debt including ifs. 16 tell by 800 and 32 million. T
To around 13 billion here.
Mapped that to editor improved.
0.8 times to 0.7 times.
Excluding if you look at the uh exclude ifs, 16, net that sell by 741 million here to around 5 billion sales, the latest leverage ratio improved from 0.3 times to the 0.2 times. Actually there's no leverage uh, in our group.
Looking at the charts on the right growth that was around 22 billion. TL uh, if 16 lit is made up 38%, bonds, 333%, uh, and bank loans, 28% also 69% of net that was in Turkish, Dara and 31% in foreign currency.
Taken together this improvements have made our balance sheet. Even stronger are low leverage balance steps structure. Give us the flexibility to support the future growth Investments.
Uh, on the investment side, let's now take a look at capex.
As part of our long-term growth strategy, we made significant Investments over the past few years to expand our hospitals Network.
As many of those projects have now been completed. So our capex has started to normalize
As you can see on the slide. First off capex, file by 1.2 billion, TL to 3.8 million here.
Capex to revenue also declined from 15.4% to 11.1%.
Maintenance capex. Was the 3.9% of Revenue. This mainly covers floor, openings, Renovations and medical equipments in our existing hospitals.
Growth capex was 6.8% of Revenue of this 1.3% was for a prior hospitals. The remaining 5 point, uh 5% was mainly for land licenses and future Hospital projects.
And also renewable energy capacity, 0.4% of revenue.
So while our investment program continues, we are now entering a more normalized capex phase following the expansion cycle of recent years,
And finally, let's look at our cash flow.
We delivered a very strong cash flow performance in the first half.
Operating cash flow increased by 50.6% to around 5.9 billion here supported by strong editor growth and lower working capital requirements.
Out after TL 4,110 million of dividends paid to minority shareholders, free cash flow reached around TL 1.7 million. Yeah,
Uh, as a result free cash flow improved from negative 1.3 billion, TL last year to positive 1.7 million TL in the first half. Actually this reflects the combination of a stronger operation cash generation and the normalization of our investment cycle.
Uh, so these were the key highlights from our first of results. Overall, we delivered strong profitability, a stronger balance sheet and positive free cash flow of living cost, wealth positions for the rest of the year.
Thank you for your attention. We will now be happy to take your questions during to Q&A.
Then, it's back to you.
The floor is open for your questions. Please, either raise your hand, you can also ask your questions, uh, from the panel in the form.
this is,
Hello. I was asking in Turkish. Thank you for the presentation. I would like to ask about the effect of putting the doctor's on the uh, payroll.
In in Q2. Um, this um,
Will have a month ago in July.
the we we
Next question, is that change a bit and net profit question? You know? Um, if depreciation actually that's the problem.
Let me do my investments commission for the last year and, uh, the full impact of those assets.
So part of the increase, reflects the base effects, then structural change.
Going forward, with the depreciation reaching a more normal level, we remain broad around these levels. Uh, so we do not expect increasing negotiation like, uh, last year. So, uh, we can see transformation from a bit. The network really stabilized.
if you do any questions or should I 1,
thank you very much.
Can get you.
About the recent developments.
Let me respond to the first question until the end of September that wasn't an obligatory. Um, uh, acquiree. I mean, the option is still open and so uh, we have no obligation right now. We are comfortable and let me talk about something else.
Uh, I mean, yes, I've been hearing some rumors and, uh, so let me elaborate on that a little bit. Um, dear friends. Um, um, there is no such, uh, thing about any sales by a partner. So you may be hearing, uh, about something like this, some rumors. This is not the reality and, uh, you may have some concerns about this, uh, sales of, uh, share it, but you should have no concerns. There are no.
Uh, uh, no problem, uh, arising from the sales of any shares. So, let me just clear that out here.
Uh, yes, you also answered my second question. Thank you. Yes. Because uh, yes, I I was going to ask about SPO because in the uh Market, there are lots of speculation. And uh and so maybe we're thinking that that is pushing pressure on the uh, share price for cam, uh, exactly. That really um upsets me uh, because we have very good results but um,
And, uh, I I mean, for example, today, I, I was, uh, hearing about these rumors. I, I mean, uh, once again, I would like to underline that, um, needs from me nor any other partner, uh, is considering any uh, sale of shares? There is no pressure, everything is going well. Uh, so please uh, do not believe such rumors and I don't know where they are coming from. So let us all be transparent. And and open and uh, say that um, we are completely dismissing these types of rumors. Thank you.
Okay. Um, now I'll check the written questions. Uh, am I correct? Is asking, can you please explain the drivers behind the average?
Uh, revenue per protocol contraction and comment and outlook.
uh,
Okay. Um, I think I can.
Take this question, uh, average revenue per outpatient. If you look at, you know, both outpatient increased 6% year on year in the first half with outpatient pricing increasing more strongly than in, patient pricing. That's the correct, uh, comment. But in line with our strategy, the the share of our patients, they knew in total revenue has steadily increased in recent years over the past years. Uh, the shares has risen from 40% to 49% positively, contributing to our profitability. So, in terms of average revenue per inpatient, we recorded an increase of 1.5%. In the first quarter, followed by a decline of 2.9% in the second quarter.
The second quarter decline was mainly attributable to Patient mix and it's a seasonal effect.
So I think uh, this has your technical, uh, question.
Yes. Let me just um, uh, make an addition. Uh, I agree with what Dennis said for about a year now. Uh, we have been looking at uh, a cost uh, based analysis. And uh, and I did tell you that we were working on more efficient planning,
uh, because sometimes, um, uh, I mean, when, when you, for example, uh, um,
Um, uh, sometimes uh our patients sometimes, uh, efficiency or of of those patients is higher because the cost will be lower. So we do follow these very closely.
Okay, uh let answer the next question.
Please raise your hand if you have any questions.
Uh, hi. Thank you for the opportunity to ask questions. I believe you are on the English line, so I can only ask one question. What is your inflation assumption for 2026 when calculating 15% real? Thank you.
Yeah, I can answer this question actually. Our assumption is around uh 30% uh
4 year on year.
Uh, if you, for example, look at the first half, the inflation was 17%. Uh, so assuming, you know, 30% for the remainder of the year, you can, uh, accelerate 2% in your model.
Questions.
No. Thank. You know follow up. Okay next question, please.
We have no questions. More than this is yours for your closing. Remarks
Yes, thank you very much.
Yes. As I have underlined in the first, um,
uh,
patient. We are moving forward in an organized way.
And um,
And each uh uh person in our staff. They are working very uh hard uh to achieve objectives. And uh the second half of 2026, we expect to have a strong real growth and we expect to successful results. Um, at the end of the year,
And as you know, um, we have a very, uh, powerful uh, balance sheet, we have, uh, a robust Financial structure. We are uh, growing organically and in organic organically and we continue to grow without disrupting our financials. I think you're very much for taking the time to be with us today. Thank you. And we hope to see you um, in the near future again.
