Medicover (MCOV) investor relations material

Transaction overview

• Announced sale of 100% equity in Medicover Hospitals India to KKR for INR 105 billion (EUR 0.95 billion), with KKR also acquiring EUR 0.1 billion in loans and accrued interest, totaling an enterprise value of EUR 1.2 billion.

• Medicover will receive approximately EUR 0.74 billion in cash proceeds, including EUR 0.1 billion from shareholder loans and accrued interest, representing its 66.1% stake.

• The transaction is expected to close in Q4 2026, pending regulatory and merger control approvals.

• The divestment provides immediate value realization, full cash sale, and execution certainty, enhancing financial flexibility and strategic optionality in European markets.

• Tax and transaction costs are estimated at 1%-1.5% of gross proceeds, resulting in a relatively small deduction from the incoming funds.

Financial and operational impact

• Excluding India, revenues decrease by about EUR 220 million, but EBITDA margin improves by 40 basis points to 16.5% and EBIT margin by 50 basis points to 7.6%; lease adjustments could add another 20-30 basis points to EBITDA margin improvement.

• Underlying business excluding India shows strong performance, with a 17.3% CAGR in revenues over three years, compared to 16.3% including India.

• Geographic and payer mix remain largely unchanged, with Poland, Romania, and Germany absorbing the revenue share previously attributed to India.

• Leverage drops from around 3x to nearly zero post-transaction, further strengthening the balance sheet.

• Indian unit contributed €220.5 million in revenue and €26.1 million in EBITDA over the last twelve months.

Strategic direction and guidance

• The divestment allows for a stronger focus on core European markets, with ample organic and potential acquisition-driven growth opportunities, especially in Poland, Romania, and Germany.

• Margin improvement guidance remains, with the impact of India’s exit expected to be muted due to its 10% revenue share and lower margin profile.

• No immediate changes to midterm financial targets; further updates will be provided after transaction completion.

• Management and capital will be redirected to core European operations, maintaining a strong platform for growth.

• Focus will shift to expanding network and services, improving capacity utilization, leveraging synergies, and accelerating technology initiatives in Europe.