Investor Presentaiton
Asset-light Business Model
Key Supplier Relationships
IDH's contracts with its key suppliers of medical testing kits include the provision of the equipment used to
analyse the laboratory test results
The Company's primary suppliers of kits are
Consolidated COGS Analysis in 1H2018
Siemens, Roche and Sysmex, together representing
60% of raw materials in Egypt in 1H2018.
7%
IDH is fundamentally a
COGS "economy of
scale" business.
22%
37%
Raw material
Wages and Salaries
Depreciation
34%
Other
Roche
SIEMENS
Healthineers
Sysmex
Diagnostic equipment
is typically provided
by key suppliers with
no associated CAPEX
in exchange for
purchasing minimum
volumes of laboratory
test kits.
Laboratory test kits
are purchased on
contract with volume-
linked pricing.
Significant volume
and scale has also
placed the Company
in a favorable position
to negotiate test kit
prices, thus manage
costs effectively,
especially during
recent challenging
macroeconomic times.
Reflecting this asset-
light business model
with its associated
low CAPEX, IDH's
balance sheet is under
leveraged and highly
cash-generative for
strategic flexibility.
Supplier relationships
helped protect gross
margins despite a
>50% devaluation of
the EGP after the
November 2016 float.
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