Medicover AB (publ)

The MediCover Q1 2025 report presentation. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to the speakers, CEO Frederick Rugemark and CFO Anand Patel. Please go ahead.

Good morning everyone and welcome to the first quarter 2025 results presentation. It's with great pride and joy we present this report. In fact, I think it's probably the best report we have presented. possibly with the exception of one or two covid doped pandemic reports but in terms of the broad business it is definitely the best report we have published since we listed the company now eight years ago it's a combination of factors you know we see continued strong top line growth organic growth was more than 14 percent most importantly The further down the profit and loss statement you see, the more operational leverage you see coming down in margins expanding. EBITDA margin up 1.6 percentage points, EBIT margin up 2.4 percentage points, and it goes on as you flow through down the profit and loss statement, which is exactly what we have been focused on. It is exactly what we have been reporting to you over the past four or five quarters. It is just that as the numbers get bigger, it becomes a bit more pronounced. And that's really what we see here. Poland continues for healthcare services to be really very strong. Now, India had a particularly weak quarter. and we'll speak a little bit more about that later on but I think it's noteworthy to see that we push through these results both growth and margin expansion despite actually you can argue a disappointing a quarter out of one of our core markets so more about that a bit later Diagnostics very strong again remind you that half of diagnostics is Germany where a good chunk of that is public reimbursement where we get no price compensation but despite that with all the initiatives going on and actually really strong growth in the German private pay revenue and really good performance outside of Germany in DX we see really good growth double digit organic growth out of dx as well as margin expansion now that's flowing through as you've seen in the in the last quarters in in in really good cash generation cash flow you know we've always had good cash flow it's just that the number starts to get bigger so the amounts become bigger and then also i'm really very pleased and happy to be able to report to you that on a quarterly basis, i.e. we annualize the first quarter, we have achieved the year-end 25 financial targets that we set a little bit more than two years ago. So we're on an annualized basis, we're trading on around 2.3 billion euros of organic revenue. We're just a tad above 350 million organic adjusted EBITDA. and we're also trading above those two additional targets we added a year ago adjusted beta l of at least 235 million and ebit of at least 140 million so that's after nine quarters out of 12 so three quarters of the period And for all of those that attended our capital markets day, I think you very well remember that they were certainly not unambitious targets. So I think that is that's super performance. Then if you go on to our standard graphic pages, The revenue split is pretty standard. What's worthwhile to point out there, you see Poland has now grown into 52% of revenue on the back of, it's just sort of stellar growth performance over a longer period of time. You see 22% growth out of Poland, 7% out of Germany, which is not bad in fact, because you said you have relatively no price growth and relatively little volume growth in the public pay segment. So the private pay segment is growing really well. 19% out of Romania and you see basically 1% out of India. And I take the opportunity to comment on that here now. So India had a strange first quarter. We were trading pretty much on plan in January and first week of February, and then it was pretty much a cliff fall for the second half of February and March. And I think most people in India experienced the same thing. So very weak consumer sentiment. Then we have around 10-ish percent of medical tourism in our business in India, and we got no visas issued. So that sort of came to a halt. We closed down one underperforming unit, et cetera. So there were a number of factors explaining that fact, but there's no other way of expressing the first quarter in India than it was a disappointment. I think the most important of all is that it was an exceptional quarter now. April is pretty much over, like tomorrow, and we are back and trading significantly double-digit revenue growth again in April, and that we expect to continue going forward, which is important. So that is India. We then flip on to the topic slide. So very pleased with how the volume growth is turning into higher margin and hence increased profitability. So EBITDA up to 86.5 million, 29% growth and even 15% margin. So good growth, 150 basis points on last year. And the adjusted number for the first time is above 90 million. So 90.6 million adjusted EBITDA 15.7%. good strong number adjusted the beta l up over 60 million i think also for the first time effectively and then i already mentioned ebit is almost doubling not fully doubling but not far from it from from 19 up to 36 million so a margin of 6.2 percent so significant margin expansion again very healthy good cash flow And then, of course, the biggest expansion, if you wish, comes on EPS, obviously, because it's the smallest number. So EPS more than tripling effectively from just above 4 euro cents to about 13 euro cents. So I think super, super performance. Then if you go to health care services, So, good growth, running above 400 million, I think, for the first time, so 403 million of revenue, 18% up of which 15% was organic, and just short of 9% of that being price. So, I remind you that price is very important to us, that we are able to continue to push price growth on to our consumers to manage. Although, you know, cost inflation has certainly come down and we are in a much better position than a couple of years ago, but one should be also very clear on the fact that it's not gone. So it's not normalized. So it's really important that we are able to keep seeing that we can continue to raise pricing, although at lower levels than what you saw last year. So fee for service here is half of the division, up 14%. And I made the point before that, you know, performance is pretty much stellar across everything we do in Poland. It is also good actually out of Romania, relatively speaking, compared to last year. We still have loss making units in the large hospital in Bucharest but you know Romania is pushing on. I have commented on India. The member growth may look a bit soft. I remind you that as we announced end of last year that we are exiting the Hungarian business and as we do that that happens gradually throughout the first six months of the year so we had a not insignificant negative member movement out of Hungary as part of that exit process here in the first quarter, which contributed quite significantly to that lower than normal member growth number. If we then switch to the earnings profile for healthcare services, strong margin expansion, in fact super strong margin expansion, you see a beta up more than two percentage points. EBITDA L even more, 2.3 percentage points. EBIT significantly more than doubling in terms of absolute amounts and almost also doubling in terms of the margin, you see 3.4 to 6.7. So lots of operational leverage coming through here. And I remind you, this is despite the Indian business, which is significant in this division, not firing on all cylinders in this particular quarter. So there's still room to improve this situation significantly as we progress. You actually see that in this next bullet point where we... You have seen that we have reported a number of times now when we take the six most immature hospitals, five of them being in India, and one of them being the large recent addition in Bucharest, You see that we had a beta L loss for the quarter of 3.9 million. Effectively, that's 600,000 worse than in the prior quarter, which is purely driven by the point I made on India. In fact, Romania is improving. the situation. So the loss is coming out of the Indian hospitals on the back of lower revenue than we had in the prior quarter. But again, I reiterate that's going to reverse into the second quarter. So you don't need to worry about that going forward, but one should recognize that in this quarter. The medical cost ratio, which is then the most important cost category in this business, which is i.e. all of the cost of delivering the medical service, you see is actually down quite significantly, two percentage points, which is a combination of factor mix, price growth, of course, and a lot of very good hard work of our management team to manage utilization and costs. You have the standard Indian picture. Nothing has changed in that since we showed this the last quarter. Now, we have to remind you, we have two more units coming up in India over the coming 12 months, both of them in the main Hyderabad market. So one will open in the summer, Both of them are large units and the second one will open towards the end of the year or beginning of 2026. Then flipping to diagnostic services. Again, I made point before, I think good revenue growth, good momentum in this business, 182 million. So just short of 12%, all of being organic growth. where price is just about 3% of this, so slightly less than half of the price component in healthcare services. Again, you have heard me say many times before, that's explained by the fact that half of this business is in Germany, where there's very little price compensation. So basically outside Germany, we have been able to adjust prices very much in line with how healthcare services have been able to. So good performance pretty much across all markets here, really. You see a relatively benign growth in lab tests. We have done fewer. If you remember last year round, we did quite a few, almost three lab tests in Ukraine for the public insurance house. We still do some of those tests, but we did significantly fewer. this quarter round, which explains the much lower lab test growth vis-à-vis revenue growth. Fee for service here is a full 70% of the division and that was up 16%. I remind you we talked a lot about end of last year about the pricing reform. The additional pricing reform, I should say, that came into force in Germany in January, we have assumed a worst case scenario for us, and that's what we account for. We will know really in early July. how the different lender kvs treat this and it may be that we get some upside time will tell at least we know it's not going to get any than what we are assuming currently in our numbers you can also see a little bit what i'm talking about on these two pie charts to the right where you see um the upper pie chart you see germany is growing six percent And below you see public money is growing 3%. And basically, pretty much all of that public money is in Germany. So that means that the other half of the 6% in Germany is growing double the 6%, if you see what I mean. So that illustrates the fact that our private paid German business is actually growing very nicely. Now, this resulted in good flow through. to increase profitability so EBITDA was up very well so a bit more than one percentage point just short of 20 percent margin EBITDA L likewise just short of 16 percent margin And EBIT then grew a bit more, so a margin of just above 12%, up 28%. So good results out of this. And again, it's not split out here, but I think I made that comment last quarter round, I can make that comment again, that actually Germany, where there's a lot of focus on this price reform, etc. Our total German business in diagnostics is growing its margin. So relative to the first quarter last year, despite all the pressures around us, we are up around one percentage point in terms of the German margin. Then we have two post-closing events that we just want to comment on. We made two acquisitions that we had sort of hinted to you about before in the previous quarter. These closed just early in April. Both of them had been in competition clearance for quite some time. So we were very happy when they finally got released. In diagnostics, you may be familiar with the relatively large lab group Synlab, that used to be listed in Germany, now again it's a private company, and they are selling off a number of assets now, and we had an opportunity to pick up This set of markets, and this is really a synergy play for us. So we have tremendous synergies, particularly in Romania, but also in Turkey. And then they have some really nice businesses on some of the other markets there in the Balkans. But you can see that we stated in the release that we expect already within one year to have grown their current profitability at least 50 percent and within at least two years have doubled the current profitability levels from Synergis really. So we feel we have all of that under control. So we believe this is a very good, very strategic and certainly very accretive acquisition for our shareholders. Then in healthcare services, we build further on the tremendous growth and positioning we have in Poland by adding a a very well-run fitness operator to our network. And then I remind you, we sell these sports cards in Poland alongside our healthcare cards to the B2B corporate clients. And then they are buying either standalone healthcare, they may be buying standalone sports, but increasingly they are buying a mix of the two, which is really what we want, because of course, the more Customers also go and look after themselves at the gym. The more healthy they become, the less illness they will contract. Hence, the synergies are both in distribution and cost for us. We expect this to be a very good acquisition. We think it's priced reasonably. We will have good synergies on the overlap that I was just talking about. And it also will be very accretive to our results. And with that, I think I hand over to Anand for the financial review.

Thank you, Fredrik. Very pleasing to talk about another strong quarter for us. And also, I would say a kind of continuation of the story of recent quarters that we've spoken about. So as per usual, I'll talk about EBITDA after lease costs, as lease costs are a key part of our cash flow. So if you look at group level, group EBITDA grew to 60.4 million euros. That's growth of 39% with margin accretion of 1.8%. And the pleasing thing is, and similar to what I said in Q4, the story is consistent across both business units. So we have strong absolute growth across both business units, both in price and in volume, and margin rate accretion across all businesses as well. In healthcare in particular, so we had EBITDA of 40 million, so a margin rate of 9.9%. So that was up 2.3% year on year, so really strong performance there, particularly as Frederick mentioned, given that the India performance was below slightly better expectations, but back on track. In diagnostics, again, despite the news about Germany, et cetera, Frederik's mentioned that we grew volume, we grew price through growing our fee-for-service business, and also we grew our margins. So overall EBITDA of 28.7 million in DS, with a margin rate of 1.2% year-on-year to 15.7%. So if you look at page 16, a key thing for us this quarter, I guess, was a real improvement in our leverage levels. So our loans payables were broadly unchanged from Q4 and clearly our EBITDA grew year on year. So that resulted in our leverage dropping to three from 3.4, which we had in Q4 last year. I will talk about future projections when we get to the target slide. But for now, really strong performance from a leverage perspective. In terms of our effective tax rate, it was 28% in Q1, in line with our expectations, a bit higher than last year, but that's due to the timing of tax settlements in Poland. Again, a strong performance from a cash perspective. Again, reiterating what Frederik said earlier. So net operating cash was up 11.6% to 87.5 million, predominantly by EBITDA. And free cash flow, which in essence is cash flow after maintenance capex, but before investment capex, that was up year on year as well to 44.2 million. And the final line I'll talk a little bit about. So ROIC was up pleasingly versus what we reported in Q4. So in Q4, we're at 6.7%. In Q1 this year, we're at 8.3%. And that's where you can really see the benefit of the EBIT accretion that we're seeing year on year. So Frederick mentioned that EBIT was up nearly doubling in Q1. And that really helps our ROIC level. So we're pleased to see that. And hopefully that's a manifestation of what will happen for the rest of the quarter. oh rest of the year sorry uh looking at capex so from a capex perspective uh we spent 28 million in q1 which is broadly the same as last year uh as a percentage it was five percent of revenue previously we've guided that our capex spend in fy25 will be between five to six percent so uh a bit timing yeah we'll spend a little bit more later in the year From a medical space perspective, a small accretion in the month, but broadly unchanged at 915,000 square meters. And then you have the two charts that we normally show at the bottom of the page. So on the left, you can see that actually similar, let's say, to last year's cash flow. We see a spike in Q1 from a free cash flow perspective and clear headroom between that and what we've invested in our business from an investment CapEx perspective. On the right, you can see the Q1 breakdown of growth and maintenance capex year on year. So the first block is the spend in Q1 FY25. You can see the split is 53% growth and 47% maintenance. That's kind of just a timing thing. So going forward, and we project for the full year, we'll be back to about the 60-40 levels that we've seen in prior years in terms of splits, with 60% being on growth. And finally, talking about targets. So very pleased in Frederick's final quarter as CEO to say that actually he's mentioned this already. Our run rates for Q1 extrapolated forward imply that we are going

We're having a little technical issues, but we're solving them. Just be patient and wait a little.

Hello, hopefully you can hear us now. Apologies. I think there was a slight technical issue. Right. So I'll talk about the financial targets page starting from scratch, assuming you didn't hear me the first time. So Frederick mentioned in his opening slide that our run rate is on track to beat all these targets. It's a message we've said in the last two quarters, and we're pleased to kind of reiterate that in Q1 this year. So just to confirm, we will exceed our organic revenue target of 2.2 billion. We expect strong performance for the rest of the year. We expect to exceed our organic EBITDA target of 350 million. You've seen positive and consistent stories over the last quarters in terms of price and volume improvement and margin accretion. So we expect to see a version of that for the rest of the year. from a leverage perspective uh in q1 we were at three times uh as we uh realized and took in some loans to fund uh the acquisitions we made in april we've mentioned before that we may be above the target of three and a half times for a short period of time so do not be surprised please if you see a slight uh increase above 3.5 in q2 however we expect levels to drop down to three and maybe slightly below three by the end of this year so we expect to achieve that target And Fredrik's already mentioned that actually in terms of the bottom left, the additional targets we gave you to give you some comfort, EBITDA in excess of 235 million and EBIT in excess of 140 million. You know, I'm confident to say that actually we can achieve those numbers as well. So with that final, I guess, record quarter for us, it's my honor to hand over back to Fredrik for the final slide.

Thank you. Thank you, Anand. So, yeah, key takeaways. So we have always grown well. and we keep growing well. And I think it's an assumption that we will keep on growing well going forward as well. Anand just talked about the financial targets on a quarterly basis, annualized, having been achieved in this quarter, which of course is super good. And importantly, it comes from a solid margin expansion in both divisions. So while some businesses obviously are stronger than others, it is quite uniform in terms of performance across everything we do. Very good cash flow. We've always had very good cash flow. Again, it's just that the numbers get bigger, so then it becomes a bit more visible. And the acquisitions are not visible in these numbers. They will be visible when John and Anand report in late July for the second quarter. And both of these acquisitions will be very accretive, as I mentioned, and they add about 80 odd million euros of annualized revenue together. Outlook remains strong and solid, and I am very happy. I'm very confident to hand over leadership to John and Anand and the leadership team. I think that's the takeaway. Thank you.

I'm back to operator.

Ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Matthias Vadsten from SEB. Please go ahead.

Yes, good morning all. So in your last quarterly conference call, I just wanted to take the opportunity to say congrats really on an incredible and impressive journey with MediCover Frederick. It's been fun to work with you from my perspective. So with that, I have three questions. First one, maybe a longer one, but I'm just trying to understand a bit better what is going on in healthcare services. So the six units you've been referring to are close to 4 million negative on EBITDA, as you said during the presentation, actually higher loss, also a softer quarter in India, and margins coming this strong. So maybe explain what positive drivers that have been kicking in in Q1 vis-a-vis last couple of quarters where the margin improvement has been smaller. And also, do you expect or do you anticipate this positive margin trend to continue in healthcare services going forward? That's the first one, and then I will take two more.

Yeah, so, Mattias, you have the You know, the margin expansion is coming from the businesses that I say is sort of standing out. And that's really out of Poland. So the employer paid business had a stellar quarter in terms of basically margin expansion. I made the point that actually medical loss ratio is down year on year and given the size of that business a percentage point or two will reduce medical loss ratio has a big impact on that business. Now we have super growth in our adjacent sports business which is which is a good margin business, so the more we grow that, the mix is slightly improving. And the third element, which one sort of tends to forget, that is that when we go, which Romania is a good example of, when you look at the situation this time last year and the situation now, we are still not where we want and need to be with margins out to Romania on the back of these hospital openings, but you have a very significant improvement year on year. So that sort of swing factor when you go from an outright loss-making position to perhaps a small positive position, that makes a big difference on the margin. So that's really what you see here, Mattias. So a number of factors being driven by the business that performed very well. And that's not going to change. So that's why I made the comment initially that it's noteworthy to see that we have this performance, despite the fact that actually the losses from these six units is actually increasing relative to the prior quarter.

This makes sense. Thanks for that. Then you're taking me into my next question a little bit here. So I appreciate you not commenting on margins per business segment, but I think it looks like in your report recently that your sports business, as you alluded to, and the ophthalmology business grows very fast. So could you give us a sense, these two areas together, how they compare to the health service area overall in terms of margin profiles. Is this possible?

I mean, you know, sport and gym business is a higher margin business than the health business. And then the fact that it's growing so fast is that if you look at what we have bought and invested quite significantly in that area over the past three years. So it is not that strange that it's growing that way.

I agree. Then the third one is concerning Germany. so if you could talk about the split private vis-a-vis public and also i mean the growth rate seems to be quite extraordinary in the in the private part um i i haven't i mean just some thought if the private public capacity not enough uh you know our capacity taken down due to deteriorating profitability or you know what is happening there uh i think Yes, I think this is important to cover because it looks quite extraordinary.

You have exactly the same thing having started going on in Germany that you had in this country, in Sweden, for a long time now. When the public system is starting to run out of budgets, they're not going to tell you they run out of money. You're just going to get your appointment much further down in time. So accessibility goes down. That's what happens when funding becomes scarce in the public system. And that's very much what we see in Germany. So on balance, more people that are covered by the public health insurance system will tend to go and pay privately to get a quicker appointment. That we didn't see a number of years ago in Germany, but that you see now. I think that's a core part of explaining the higher growth in private pay in Germany. That is the difference when you look at how come you're growing like that, where basically The public pay piece, which is significant, has very low volume growth and no price growth. So you correctly observed, Mathias, that then the other half must be growing quite significantly.

Thank you very much for this.

The next question comes from Philip Eckengren from ABGSC. Please go ahead.

Hi all, and thanks for taking my question. And again, congrats on a strong quarter here. I just want to look back to the Polish market. You write a bit that the growth rate in Polish hospitals, similar to Indian hospitals, is experiencing difficulties in Q1. Could you elaborate a bit on that, please?

Yeah, I wouldn't overdo that, Filip. you know, some quarters, some businesses are strong, other quarters, other businesses are strong. And this particular quarter, our our polish hospital business was slightly behind plans i think in the previous quarter fourth quarter it was the opposite so it is just a factor to note you know what has been driving performance this quarter we i wouldn't expect it to be the same next quarter just to give you that sort of indication so so it's a factor in quarter one but it's not something that you should expect to continue

Thank you very much. That's clear. And then on the acquisition of SynLabs operations, can you say anything about what type of labs? Are they more of a simple character or are they more advanced labs? And also maybe if you care to explain a bit on what type of synergies you're planning to realize and also maybe update us on what processes you're looking to implement there.

They would have very similar labs to ours. These are six stand-alone country operations. They would operate their lab network very similarly to how we would do. It's a very professionally well invested business, so nothing much different. We may have different machines because we may work with different key vendors, but otherwise the labs would be very similar. So the key synergies comes really from closing down infrastructure. So where you operate in the same geographic market, You don't need two labs and you don't need two BDPs next to each other. So there's a lot of overlapping infrastructure that you don't need. So when we talk synergies, it's pure cost synergies. So you can operate the combined business at much less than the current combined cost.

Yeah, that makes sense. Thank you very much. That was all from me for now.

The next question comes from Christopher Liljeberg from Carnegie. Please go ahead.

Thank you. Three questions. First on the diagnostic side, can you describe a little bit more about the growth outside of of Germany, is that mainly in Romania or do you also see strong growth for more specialized tests that are sent from other countries into the German labs? My second question, about the weakness in India you mentioned, how much would you say company MediCover specific and how much of the weakness this quarter is the overall market. And then finally on the targets, if you just have a figure on how much sales has been acquired since the target was first announced. Thank you.

Say that last one again, Kristoffer. I didn't hear you correctly.

I just wonder how much sales has been added from acquisitions since the financial targets was first announced?

Okay, Hanna will work that out while I... I think it's two million only this quarter, but we'll come back to it. So I'll start with the first one.

I can talk about diagnostic sales. So I think not just in Germany, but actually across all targets, all areas, we saw positive double digit growth in terms of revenue growth from a diagnostics perspective. So pleasing from an overnight diagnostics that not just reliance on Germany, where Germany was still growing, although single digit, but strong in all other areas as well. Can you remind us of your second question, please? Sorry.

I was wondering about what seems like a temporary weakness here in India. How much of this was company specific? You mentioned about some issues at the hospital and how much was the weaker market. And if you have any view about the reason for this market weakness and the sharp uptick again in April.

There's no scientific answer to that question, Kristoffer. So if you allow me, I'll just give a personal guesstimate. And I don't know if John will agree with me or not, but I sense probably about sort of two thirds of weakness is ourselves. And one third of weakness was much weaker consumer sentiment than and expect half of the period, something like that. And in terms of what impacted us mostly in terms of the internal stuff was the lack of visa for admitting traveling patients from abroad. And then, you know, why did we see this consumer weakness in India? principally second half of the first quarter. And I don't think there's one single answer, at least my understanding, despite having read quite a bit. So I think quite a few factors sort of came together. It will be interesting to see. I mean, we're the first of the Indian publicly listed hospital peer group to report. So it will be interesting to see when those reports come out, how they comment on this. I think it was probably more pronounced in the southern part of the country where we are, as opposed to the northern part of the country around Delhi. But again, that will be interesting to see when the other companies report. In 2023 and 2024 we had acquired revenue of 108 million euro.

Sorry could you say that again?

Did you get that Kristoffer?

Can you repeat that figure?

Can you hear us? For 2023 and 2024 we had acquired revenue of 108 million euro. I think we're back. Next question.

Christopher Liljeberg from Carnegie, your line is now unmuted. Please go ahead.

Do we have any more questions?

Since my line is unmuted now, do you hear me?

It's Christopher.

Yes, we can hear you, Christopher. Did you have any more questions for the speakers today?

No, I'm fine. but it seems the speakers couldn't hear me, so I don't know.

Are you finished with all your questions?

I'm finished, thank you.

Thank you so much.

The next question comes from Kane Slutskin from Deutsche Bank.

Please go ahead. Morning, everyone. A couple of questions, please. Just on the medium-term targets... Do we have any other questions? Sorry, can you hear me?

Yes, we can hear you. Hello.

Yes, yes. I'm not sure they can hear me. Should I continue?

Yes, please, Kane.

Okay. Morning, everyone. Just on the medium-term targets, you've obviously surpassed those targets on an annualized basis. just wondering will you be sort of updating those given they're somewhat out of date um you know set back two years ago and um just wondering particularly given the fact you did mention roy um you know you've had a nice increase that might might be something you add to your targets because you know 8.3 is up nicely on q4 but it's you know it's still relatively low and i'm just wondering when all you know obviously being impacted by some of the drags from new hospital openings. I'm just wondering if you have a sort of medium-term target for ROIC. Just on the acquisitions, the 80 million you referred to annualized, could you confirm or give us a ballpark number on the EBITDA that you will be generating from that 80 million? Using the seven times multiple on CityFit, it looks like 19 million on that business EBITDA, which is quite a high margin. So I'd just like to confirm how much EBITDA you will be getting from there. And then just find me on India and can you just confirm the occupancy levels you are at in April? And is there any update on the listing, the potential listing? Thank you.

We might have some technical issues here. It seems that I'm the operator here and I could hear your whole question, but apparently the speakers, they're not hearing.

Okay, I thought so because there was no reaction.

We can hear you, the speakers, but we're just fixing the issue here with the, if you can wait a little so we can get an answer.

The number you have dialed is not available or is currently switched off.

need to write the questions there then we can see them could you kane please write your question to the chat board so then they could see it and answer you uh i'm i'm actually not logged into the webcast uh i'll have to log in quickly somehow um all right we're we're terribly sorry but it's some technical issues

Okay, I just need to find the invite, unfortunately, so it might take some time.

Should we go through these? You can hear us.

So do you expect Indian hospital businesses to be break-even on EBITDA or EL this year?

I can answer that one. So yes, in short, when we refer to the six hospitals, five of which are in India, we have 23 hospitals in India, which are positive. So we will most definitely be positive from an India EBITDA perspective.

What price growth do you expect? the rest of the year. I think it's quite similar to what we have reported for the first quarter. So I don't think you should expect that to be dramatically different. And then What are your capex as a percent of revenue for the full 25? We have guided five and a half to six percent. Five to six percent. Do you expect Do you plan CityFit to be available only for MediPair sports cards or to other sports card providers as well? You know, it is available to other sports card providers as well. So that is likely to remain like that.

Let's see.

We're running some technical issues, but I'm trying to get back in touch with the speakers.

Hello.

Okay, unfortunately,

We've lost the connection with the speakers today, but we want to thank all of you for your attending to this presentation and have an excellent day. Thank you and have a great day. Bye.

Sorry, we had a technical glitch here at the end, but thank you for listening in. And I hand over to Anand and John that will be reporting the second quarter. So thank you very much.