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Edited Transcript of CLHO.C earnings conference call or presentation 25-Nov-19 2:00pm GMT

Q3 2019 Cleopatra Hospital SAE Earnings Call

CAIRO Nov 27, 2019 (Thomson StreetEvents) -- Edited Transcript of Cleopatra Hospital SAE earnings conference call or presentation Monday, November 25, 2019 at 2:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Ahmed Ezzeldin Mahmoud Abdelaal

Cleopatra Hospital Group S.A.E. - Group CEO & Director

* Ahmed Gamal Eldin

* Hassan Ahmed Hassan Fikry

Cleopatra Hospital Group S.A.E. - Corporate Strategy & IR Director

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Conference Call Participants

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* April Mthupha

* Hatem Alaa

EFG Hermes Holding S.A.E., Research Division - MD & Head of Consumer and Healthcare

* Michel Said

CI Capital Research - Junior Analyst

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Presentation

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Operator [1]

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Good day, and welcome to the Cleopatra Hospitals Group's 3Q '19 Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Hatem Alaa. Please go ahead, sir.

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Hatem Alaa, EFG Hermes Holding S.A.E., Research Division - MD & Head of Consumer and Healthcare [2]

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Hello, everyone. This is Hatem Alaa from EFG Hermes, and welcome to the Cleopatra Hospitals Group 3Q 2019 Results Conference Call. I'm pleased to have on the call today Dr. Ahmed Ezzeldin, the company's CEO; Dr. Ahmed Gamal Eldin, CFO; and Mr. Hassan Fikry, Corporate Strategy and IR Director. I'll now hand over the call to management for a quick presentation followed by a Q&A session. Please go ahead, gentlemen.

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [3]

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Thank you, Hatem. Good morning, good afternoon, ladies and gentlemen. Thank you again for joining us on our call today for the third quarter 2019 results. On the call with me today, we have my colleague, Ahmed Gamal Eldin, our CFO; and Hassan Fikry, our Corporate Strategy and Investor Relations Director.

Actually, I'm very glad to present to you today our results and this update on Cleopatra Hospital Group for this quarter following which, I'll be more than happy, me and my colleagues, to answer all of your questions that you may have.

But before I will start the numbers, I would like just to shed a light quickly on the operational results and some of the management -- of the investors and positioning updates.

So I would like to give you a quick snapshot of what we are doing so far. And frankly speaking, as you know, let us remind ourselves that 2019 was the year towards expansion strategy that we really -- as we told you before, we are going to iterate and we are going to acquire the business of 4 new assets. So actually, we took the company from 4 assets to 8 assets. And we promise and we commit ourselves every quarter and since last year that we are going to maintain and even improve our margins tremendously from the organic business and absorb all the ramp-up of the new acquisitions that we took place during 2019. And all that for another turnaround in 2020 to make 2020 another example of the great performance we did over the course of 2018 until now.

So from this angle, I would like just to successfully inform you we completed the acquisition of El Katib Hospital. Actually, I've been talking about El Katib maybe over the course of the last 18 months. But finally, we are very glad to tell you that now the name of Cleopatra Group -- is -- the signage on El Katib Hospital, and our key is fully operating the business since the beginning of November this year. And now we are having almost -- completed almost 780 to 800 rooms as total number of beds in the group. So for you who really joined the journey since the beginning, we started with like 300 to 400, then 500 to 674 currently after having the business of bringing on El Katib, we're talking about 700 to 800 -- 780 to 800 beds across the 6 hospitals and also the 2 polyclinics as of now were already fully operational. The one in the East Cairo is doing extremely well, even above the business plan for the quarter 4 of the year. And the new one in West Cairo, it start operation 2 months ago and we start to see a very positive ramp-up as well in anticipation for a very big turnaround in 2020.

Definitely in 2000 -- in the fourth quarter of this year, we will see also -- in addition to the revenue of the polyclinics, you will also see the first 2 months of November and December revenue and the profits coming from El Katib as well.

In addition to the new polyclinic, actually, the new project is really helping us a lot in not only as a hub-and-spoke model to increase the number of patients, but for example, now in the East Cairo polyclinic, we start to have an average of 300 patients per day, which is very, very high volume of patients coming daily into our East polyclinic. I'm looking forward to the same to be happened in the West polyclinic as well. In addition, not only that, but the most important area in the polyclinics was the revenue generated by the polyclinics itself but the repair of itself. So, so far we have like, 2% for repair from those polyclinics into the hospital, which will increase the accommodation, will increase the surgical procedures and will increase our efficiency and we'll catch the opportunity for -- a distinct opportunity in the past now we start to generate out of the new suburban areas that we start to have our existence over there.

In addition, as you know, that we have the Beni Suef project, which we did with -- in cooperation to our joint venture with Al Nahda University, and we signed the shareholder agreement. And consequently, we are expecting, after completing all the GPs, to be able to add to the group like 200 beds. The first portion of it or 50% of it, like 100 beds, would be added positively to the group between the -- during the second semester of next year immediately, and the other 100 beds will be effectively operational in 2021.

As also we mentioned before, we have the IVF center. We are in the last stage of the due diligence and once everything is settled down, we'll definitely announce it would be successfully acquiring the business with the IVF or not and within the next couple of months.

Said that, I'm expecting that you have to picture 2020 that we will continue showing efficiency, we'll continue from the 4 major assets to show efficiency at all levels and at all margins. And at the same time, the 4 new assets, the 2 polyclinics, Queens and El Katib Hospital, will have the full year after renovation and ramp-up to be -- here will give us a very good support to our business in 2020.

And towards the end of the call, I will give you like a snapshot of how we are picturing 2020 and what's our initial expectation for 2020 from a revenue, from EBITDA level, from a GP performance.

If I need now to take you quickly through the numbers, which I'm sure you already viewed. During the third quarter of this year, we delivered a consolidated revenue of EGP 462 million with approximately 20% growth quarters -- year-over-year. And definitely, this performance, although Queens is still being refurbished and the newly launched polyclinics, which are still in the launching phase, yet showing a very strong potential for the future.

On the efficiency side, our gross profit reached EGP 167 million, with an 18% on the same quarter. And now, our gross profit margin is 36% although we included all the new assets. So as I promised you before, with the organic business will continue to show efficiency higher. And when we acquire a new business, this new business will stop at a lower pace. But later on, it will jump the other big assets and we'll see the additional impact in the very near future. So if we exclude the impact of the polyclinics on the hospitals before we started at a lower margins, of course, because we hire more people, we clean the stage, we eliminated all debts, all that stuff, our organic business is showing 38% GP [loss]. By adding the new polyclinics and the 2 hospitals, it is now rendered at 36%, as we proposed before.

On the back of order sales, a widespread of facilities, the number of cases we saw in this quarter increased by 11%. So imagine that the number -- the volumes we have is increased by 11%, which is really tremendously a very big percentage, keeping in mind that also with the launch of the health insurance program with the government activities to eliminate the (inaudible) working list for the surgical procedures. Still the trust in Cleopatra, the successfully new assets that we launched, the new acquisitions, help us to generate additional percent increase in volume, which definitely, for those of you who has joined the journey since the beginning, it is the highest-ever number we have had an increase in number of volume versus prior years.

At the meantime, [Queens], we have also keep in mind, that we're still working on renovation, the change in electromechanical and still many of special projects is on place. Examples of the performance of this quarter is the surgery department. We're very happy to report again for the first time ever, we increased the surgery revenue of -- by 27% versus prior year. Also the radiology department increased versus prior year by 32%. And even our political department increased by almost 20%, and this is on the back of the launched activities we did previously, which is a one-stop shop and working on the mix strategy.

So actually now, we are attracting more advanced techniques, surgeries, procedures -- surgical procedures, more new technologies in the cath lab. That also I would like to share with you that we integrated the latest technology cath lab in (inaudible) Hospital. Now we have 2 cath labs up running in the [Al Nahda Hospitals] So in total, we have 5 cath labs in the group. And in addition to that, lots of renal transplantation, open heart surgery, changing the valve procedures and is taking place in our group. Consequently, we were able to increase the revenue of the surgeries by 27% this quarter.

If I eliminated those and give you even a more -- a better information regarding the performance of the organic hospitals, as we mentioned before, I can tell you that the GP margin increased in a hospital like cath specialist hospital by 51% versus prior year. And this is on the back of not only the great management to have there and all the efficiency measures we are doing, but also because -- as we told you before, we have now the system of Clinisys, which is the hope is that it is almost a green hospital and we have definitely increased the financial and supply chain efficiencies in managing the consumables and the inventory and other stuff and decreased the leakage to a big extent. And just -- in this one area only, we have 5 percentage points or 500 points increase in this quarter. From 32% to 37% only in our [quarter], which is -- which represents a growth of 51% versus prior years. Al Shorouk Hospital as well increased by 39%. And just to keep in mind what I'd mentioned several times and please to keep it in your models, Cleopatra stand-alone hospital now is generating a gross profit margin of 44%, while it was representing like 28% 4 years ago.

So imagine that we still efficiently intend this in the old hospital. So we promise you that we'll continue improving the efficiency at the organic level of the major hospitals. Katib, Queens, the polyclinics ramp-up, higher volume, definitely will jump the team and again will show a better performance going forward and better margins as well.

This graph -- actually, if we go to the EBITDA level for the quarter, so our adjusted EBITDA, if we eliminate balance cash item, has -- is increased by 15% with a very strong 28% margin. If we eliminate the adjusted EBITDA margin, if we look at the organic level, we are talking about 30% EBITDA level for the quarter.

So imagine what we promised again before, we said that we need to work on 35% GP margin, and we ahappy to land on 25% EBITDA. Know now from the organic business, we have 30% EBITDA and we have 38% GP margin. If we continue with the new ramp-up and the expansion then acquisition, I'm sure that the entire group will land on that number throughout -- during the course of 2020 and beyond.

On a positive note, we are also working with our plan for helping the revenue cycle management and that we promise you again, we -- the very big lump sum that we -- you had in the first quarter. We told you this is the new initiative to clean all the old debts and whatever, which represent only 1.5% for every given year. Because whatever improvements you have seen is reflecting 2016, '17 and '18. It is, as I promised you before, check on the quarter show a lower number in the second quarter. And the third quarter again show a lower number than the second quarter, and we'll do our utmost to continue on that strategy while we are closing the years, okay, which is EGP 7.7 million for that one.

Again, let me remind you that, please, if you would like to look at this end of the impairment, because I know it's a question that we receive from many of our colleagues on the phone now, that it is represent only 1.5% of every given year, '16, '17 and '18. The end of it will be the end of the fourth quarter, and then we'll work on a very healthy impairment level and normalize starting from 2020 and beyond.

It is important also for us to refer now -- is to talk -- to look at the year-to-date of the company for the first 9 months. So I'm very happy to tell you that we delivered EGP 1.3 billion of revenue in the first 9 months almost with a 21% growth in the prior year, which is equivalent to -- if we -- as a joke, if you like to go back to 2018, actually, our full year 2018 was almost close to that number.

So we have a full quarter ahead of us to deliver (foreign language) a very decent growth of higher than 20%, while we are going to close the year of 2019. And next year, 2020, you will have also the added 4 assets, which definitely was reflected relatively of the gross for the year to come.

Our gross profit as well. So actually, the revenue grow by 21% but because we are working on a very efficient model, our GP margin increased by 24%. And actually, this GP margin enhancement was 1% to take the entire -- the group on a consolidated basis to read 35%, which is in Egyptian pounds, almost EGP 0.5 billion or exactly EGP 451 million. This is the kind of performance that we have guided for this year and organic hospital is still showing efficiencies, and our new [percent] is ramping up and they integrate to the third quarter.

If I would like to jump from our organic GP margin. The organic GP margin will be jumping by almost 28%, which is 4.5% points higher than prior year. Again, driven by efficiency across the board, more efficiency in purchasing and procurement, less overtime because of the change in the HR systems for the nurses and the registrar, the different case mix, the adjusted value for the doctors and the revenue share agreements of the doctors. And consequently, the 38.5% GP margin will be what we will deliver through the organic performance.

For the adjusted EBITDA, a remand of EGP 347 million, and this represents 23% gross versus prior year. And again, at an organic level, it will jump to be about 1% to reflect a 28% margin.

To conclude my overall discussion, organic performance has continued to show 1% to 2% enhancement on the GP margin and the EBITDA level. Revenue share is above 20%, 21% and more. And the 4 new assets, we'll successfully acquire them, thanks to the merger and acquisition team and the management that I'm really proud working with here. We will be able to make the right renovation for all the assets. 2020 is ahead of us with a very committed team to agree to deliver like 20% growth from the organic business, 30% at least growth on an annualized performance of the polyclinics and the (inaudible) and El Katib which can give you an overall like 25% overall performance for next year.

Again, additional efficiency at the GP level, additional efficiency at the EBITDA level, to give you additional at least 1% to 2% at a consolidated level for the entire group. So the GP margin will be at the level of 37%, 38%, the EBITDA level more than 25% to 28% going forward.

Definitely, the volume is across all the segments increased organically, and the polyclinics is increased our total volume by something like 2% to 3%. Still, our innovation is taking place successfully. And well, I believe, that is -- I covered almost all of the questions. What maybe I would like to shed the light more on the innovation side, that we are going to inaugurate an additional 50 rooms between El Katib -- sorry, between Al Shorouk and Nile Badrawi Hospital. Because actually, we are going to launch 2 additional floors in Nile Badrawi Hospital and a new polyclinic for the -- an extension for the hospital, which will give us like an additional 50 rooms starting from February of next year.

Then as I've mentioned, after completing all the GPs, we'll be ready to give us like 90 bps starting from the second [semester] of next year.

I believe that's it. We have so many acquisitions and projects on our table now that we're still studying and this actually what we announced in last announcements. This goes to our Board of Directors meeting that we just -- from a transparency point of view, we announced that we are studying 2 major -- 2 megaprojects. One for a big acquisition in South Cairo, another acquisition for outside in another country within the region here. And also to help us in the -- to make a big project, like the medical tourism, a reality. Which is actually part of the country projects. And we will really try to give a very positive hand in that area, but we are seeing at the very end stages. One thing is more materialized and really, this announcement definitely, we'll make an official announcement in the EGX market, and then you will be the first to know all the detailed information.

With that, I would like to thank Hatem again, and we'll be very happy, myself, Ahmed and Hassan, to answer your questions. Thank you.

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Questions and Answers

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Operator [1]

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(Operator Instructions) We'll take our first question from Michel Said with CI Capital.

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Michel Said, CI Capital Research - Junior Analyst [2]

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Congratulations on the results. I have just one question regarding Cleopatra, the hospitals at stand-alone when it comes to revenue growth. So it seems during the third quarter, the revenue has been almost like 6% growth year-on-year for the quarter. So I would like to know if this kind of growth, we should be expecting going forward. Or this is just proper to some renovation or restructuring issue you have in the hospital? And going forward, what kind of growth should we expect in Cleopatra? That's all.

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [3]

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Michel, thank you very much for the question. And maybe you read the point that I missed to mention during the discussion. So thank you very much for the question.

Frankly speaking, the performance of Cleopatra, looking back since we acquired the business. Cleopatra, it is more than doubled, over 250x -- or 2.5x since we acquired the business in Cleopatra. And Cleopatra, on a year-to-date basis, it's growing by 14% year-to-date.

But please, I would like -- because actually, we are working on a very transparent (inaudible) so you need to know all the information. During the third quarter of 2018, we have a huge revenue gain, which is a onetime impact from Yemen. We have so many patients coming due to the war in Yemen, and those patients actually were fully treated with very complicated surgical procedures during the third quarter of last year. Because of the difficulty in payment, due to many other issues, we decided not to continue with that kind of business because actually, it is a onetime impact and really would like to get to work on a more -- in a more understandable and solid platform.

So we -- what we really -- it will eliminate actually the performance of that segment or the revenue came from Yemen patients during the third quarter. And also in October last year until we to -- we actually will be above the business plan and we'll be like high 25% growth in Cleopatra. This is number one to give you a peace of mind about the current performance.

In 2020, we have a huge investment plan in Cleopatra, change management there, totally new positions was higher without even searching for different places there for parking, for new services to actually we're anticipating that still Cleopatra will compete with the others -- the other black horses, not only at the revenue side, but also at the efficiency side.

But remember what I just mentioned in the call that Cleopatra is reached like 44% GP margin. But you have my commitment that this is not the end of that. Still, there is new improved efficiency in Cleopatra starting from January. Clinysis System, which help in creating a very efficient model, and Cairo Specialized Hospital will be fully operational in Cleopatra. And that's why we are expecting even higher GP margins in Cleopatra starting from 2020 and Cleopatra will continue growing higher than usual, particularly if we eliminate our prime impact of the Yemeni patients in 2018. I hope I answered your question.

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Michel Said, CI Capital Research - Junior Analyst [4]

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Yes. Just a follow-up question on Nile Badrawi. I don't have all the illumination to hospital, so I might have missed the calculation. However, I see in 3Q '19, the gross profit margin of Nile Badrawi declined a bit to 63% versus 56% GP margin, particular '18. So I would like to have more light regarding the efficiency in Nile Badrawi.

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [5]

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Hello?

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Michel Said, CI Capital Research - Junior Analyst [6]

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Yes?

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [7]

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So the GP margin of Nile Badrawi level stands at 32% versus 31% last year. So there was a margin enhancement.

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Michel Said, CI Capital Research - Junior Analyst [8]

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And for the quarter and the year, you say?

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [9]

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Yes, yes. The period, year-to-date. You talking about the quarter?

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Michel Said, CI Capital Research - Junior Analyst [10]

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Yes. 3Q '19 to 3Q '18.

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [11]

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3Q '19, we -- (foreign language) one second.

(foreign language)

Yes. Okay, okay. So the way we look at margins, and Nile Badrawi might be different, we don't look at it at the quarter level because you have the seasonality of some cases that were admitted or that was there in Q3 2018 that are not comparable with the ones in 2019. So it's better to look at it at a year-to-date basis. Because again, the same thing. In Nile Badrawi, at that same time, you also had some kind of medical cases related to the Yemeni patients last year. And you have other case mixes related to outpatients over there. So we look at it at a year-to-date -- at normalized levels of around 32% to 33%, those are the normalized levels. Some quarters may go up to 35%, 36%; some quarters may go down.

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Michel Said, CI Capital Research - Junior Analyst [12]

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Now on a year-to-date basis, do you have any...

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Ahmed Gamal Eldin, [13]

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1% improvement.

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [14]

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So we're showing a 1% improvement.

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Operator [15]

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(Operator Instructions) We'll take our next question from April Mthupha with Imara Asset Management.

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April Mthupha, [16]

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I just have a question about the costs and the direct and indirect costs you seem to discussed, and[indiscernible]...

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [17]

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Do you mind, please, if you can -- excuse me, would you please -- can you just come closer to the mic? Or if you don't mind, if you can rejoin the call?

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April Mthupha, [18]

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Sure. Can you hear me?

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [19]

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It's perfect now. Now it's perfect.

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April Mthupha, [20]

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Okay, perfect. I just wanted to ask about the costs in terms of the starting up costs and the number of doctors and the growth in doctor numbers. I assume it has gone up quite a lot. Can you give us some color around that?

And also my second question was in the last call, you said you were going to give us more detail about the ESOP plan, which I assume also has come into effect in terms of the staff costs. I just -- I'm starting to reconcile the big jump.

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [21]

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Okay. Thank you very much. What I would say, going into a very tiny discussing details about the staff costs.

On an organic level, for the 4 assets, the total number of staff does not increase tremendously. On the contrary, maybe flat or even a very slight increase. But here, we made even efficiency because actually, as you know, we already make a very big saving in the overtime by changing the shift -- the patient -- the nursing and the labor, staff and the maintenance and all the back office support you used to have in the past. And this actually improved tremendously the savings and the efficiency at the staff cost.

But at the meantime, we need to consider that we put the full-fledged number of staff to inaugurate the 2 polyclinics. And also we acquired the business of the Queens and El Katib. Particularly for Queens, for example, when we took over Queens, we have so many missing positions over there. So we have to start to have finance team, HR team, supply chain team, quality team, IT team. Definitely, you know the (inaudible) [postals] when you acquire them in Egypt here, they are not really structured the way we structure the business. So definitely on the first year of the launch, you will have a onetime impact of those people coming. Once they have been, we'll start to ramp up in the going forward. So this will go back to the normal level that we used to have and we really will land on the same percentage of 29% from the [staff] that we used to have before.

Regarding the second question on the ESOP plan. You know quite well that we -- I mentioned the word several times of the adjusted EBITDA because actually we have the program that we started since the inauguration of the project, which is a long-term incentive plan. This plan, we remind everybody, it is driven mainly by the share price. And because of the -- your trust in our group, you are keeping the share price at a very good shape. And definitely, this is very good news for everybody. So consequently, the value is LTIP value increasing. But again, let me remind you that this increase or this amount of money will vanish and disappear starting from next quarter of next year because the plan is totally vested by June 2, 2020.

But instead of just keeping the people without any long-term incentive plan and to keep the people motivated, we expand the number of people that will participate in the plan, and we are waiting for just the next board meeting to approve an employee shareholder program, which will be launched in the -- starting from next year. But the plan next year -- the new plan will be instead of one lump sum plan vested over the course of 4 years and you have all the impact immediately after 4 years. The plan will be on an annualized basis. And even every annual -- every after -- the amounts will be vested after every year will be allocated to the employee and the grant employee on one set only and then the other 2 sets will be allocated to the future one.

So the impact that you are going to see will be tremendously lower than the plan we have now. And as I mentioned, it will be in total and limited, and you will see the real EBITDA values starting from next quarter of next year. But there is definitely a full-fledged information about the plan, but just the execution of the -- still waiting for my board to give you the frame up, then we can announce something. Also, please, thank you for your patience.

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Operator [22]

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And gentlemen, at this time, there are no further questions. I'd like to turn it back to management for any additional or closing remarks.

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Hatem Alaa, EFG Hermes Holding S.A.E., Research Division - MD & Head of Consumer and Healthcare [23]

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Sorry, can I just ask a question from my side? Can you shed some light on pricing, your thoughts on pricing for next year? Will you be following the same strategy the past few years in terms of price increases? Or will it be a bit different given the inflationary environment?

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [24]

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Thank you, Hatem, very much. It's a very important question. Thank you for shedding the light on that point. Actually, our strategy -- and let me remind everybody, we are keeping our -- we have one standard list of services that we're providing across the group. So you know that to ensure integration and unification. But from the pricing itself, we have 2 prices: one price, which is for Cleopatra hospital per se, being the flagship hospital and the golden standard of the insurance company in the country. And the rest of the hospitals having almost a lower price of 10% to 15% based on the kind of service.

The new acquired businesses for 2020, we are going to increase our prices in light with the inflation. So I can say, it will differ from one hospital to another, but an average of 10% to 12%. And as you can see now, we have like 11% increase in volume. So we are planning again to have, and are anticipating to have, a bigger growth in volume next year, particularly driven by the new acquisitions and the 2 polyclinics will definitely be a full-fledged acquisition.

Katib and Queens will be added to the group and into the -- our price list. They will enjoy the prices of the rest of the group. And Cleopatra, by itself, will remain higher, slightly above the curve. So in order to ensure that Class A and the Class B is really accessible to our patients, and our anticipation next year is to reach something like 1.2 million patients in trauma.

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Hassan Ahmed Hassan Fikry, Cleopatra Hospital Group S.A.E. - Corporate Strategy & IR Director [25]

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Thank you. Are there any other questions on the line?

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Operator [26]

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No questions at this time, sir.

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Hassan Ahmed Hassan Fikry, Cleopatra Hospital Group S.A.E. - Corporate Strategy & IR Director [27]

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Okay. Gentlemen, I'll hand it over to if you have any concluding remarks.

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Ahmed Ezzeldin Mahmoud Abdelaal, Cleopatra Hospital Group S.A.E. - Group CEO & Director [28]

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Okay. Hatem and EFG Hermes, I'd like to thank you very much for hosting the call. All the participants, thank you very much for your time to listen to our results. Again, on behalf of the group, we promise that we'll continue to improve our margins. We'll grow, we'll continue growing through the high double-digit growth and hope (foreign language) We'll do services for more than 1 million patients in this year, and 2020, we'll continue to journey in success and looking always for your support. And definitely, (foreign language) we'll get the results that we're expecting and exceed your expectations. Thank you so much.

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Operator [29]

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Ladies and gentlemen, this does conclude today's conference. Thank you for your participation. You may now disconnect.