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New Frontier Health Q3 2020 Results

Dec 2, 2020

Disclaimer

Forward-Looking Statements

This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The actual results of New Frontier Health Corporation (the "Company") may differ from the Company's expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect", "estimate", "project", "budget", "forecast", "anticipate", "intend", "plan", "may", "will", "could", "should", "believes", "predicts", "potential", "continue", and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results, including, but not limited to, the Company's ability to manage growth; the Company's ability to execute its business plan, including its planned expansions, and meet its projections; rising costs adversely affecting the Company's profitability; potential litigation involving the Company; general economic and market conditions impacting demand for the Company's services, and in particular the effects of COVID-19 on the Company's business and financial condition as well as other economic and market conditions in the Chinese healthcare industry and changes in the rules and regulations that apply to such business, including as it relates to foreign investments in such businesses; and other risks and uncertainties indicated from time to time in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"). Most of these factors are outside of the Company's control and are difficult to predict. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Financial Information

The Company acquired UFH in a business combination that closed on December 18, 2019. The financial results for the years ended December 31, 2018 and 2019, and for the quarter ended September 30, 2019 presented herein are those of the Company's wholly owned subsidiary, Healthy Harmony Holdings, L.P. (the "Predecessor"), while the financial results for the quarter ended September 30, 2020, presented herein are those of the combined Company (the "Successor").

Industry and Market Data

In this presentation, we rely on and refer to information and statistics regarding market participants in the sectors in which the Company competes and other industry data. The Company obtained this information and statistics from third-party sources, including reports by market research firms and company filings.

Use of Non-IFRS Financial Matters

The discussion and analysis includes certain measures, including Adjusted EBITDA (before IFRS 16 adoption), Adjusted EBITDA Margin, Free Cash Flow and Pro-forma Adjusted EBITDA, and Pro-forma Adjusted EBITDA Margin, which have not been prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with IFRS. We use these measures to evaluate our operating results and for financial and operational decision-making purposes. We believe that Adjusted EBITDA and Pro-forma Adjusted EBITDA helps compare our performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance and helps identify underlying operating results and trends.

Adjusted EBITDA (before IFRS 16 adoption), is calculated as net loss plus (i) depreciation and amortization, (ii) finance expense/(income), (iii) other gains or losses, (iv) other expenses (such as share based compensation), (v) provision for income taxes, as further adjusted for (vi) certain monitoring fees paid to certain shareholders prior to the Business Combination, (vii) lease expense adjustments as a result of adoption of IFRS 16, (viii) transaction related costs, (ix) Gain on disposal of an associate and (x) Severance costs as a result of the restructuring process mainly in corporate headquarters since the second quarter of 2020. UFH adopted IFRS 16 on January 1, 2019, and recognized lease liabilities and corresponding "right-of-use" assets for all applicable leases, and recognized interest expense accrued on the outstanding balance of the lease liabilities and depreciation of right-of-use assets. As a result, the adoption of IFRS 16 caused depreciation and amortization and finance costs to increase in 2019 and excluded all applicable lease expenses in Adjusted EBITDA. For ease of comparison to prior periods, the Company eliminated the impact of IFRS 16 on Adjusted EBITDA.

Pro-forma Adjusted EBITDA, is calculated as net loss plus (i) depreciation and amortization, (ii) finance expense/(income), (iii) other gains or losses, (iv) other expenses (such as share based compensation), (v) provision for income taxes, as further adjusted for (vi) certain monitoring fees paid to certain shareholders prior to the Business Combination, (vii) lease expense adjustment as a result of adoption of IFRS 16, (viii) transaction related costs, (ix) Gain on disposal of an associate, (x) Severance costs as a result of the restructuring process mainly in corporate headquarters since the second quarter of 2020 and (xi) Pro-forma adjustments in PXU. See slide 46 for further information on these pro-forma adjustments.

Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA (before IFRS 16 adoption), by total revenue and Pro-forma Adjusted EBITDA margin is calculated by dividing Pro-forma Adjusted EBITDA by total revenue.

Free cash flow is calculated as 1) cash flow generated from operating activities 2) minus release of restricted cash, 3) minus capital lease payments, 4) add interest expense paid, 5) add one-off transaction expense related to the business combination, 6) minus capital expenditure on existing operations of the facilities.

A reconciliation of non-IFRS forward looking information to their corresponding IFRS measures are not included in this presentation as they cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted.

Table of Contents

Overview

Q3 2020 Business Highlights

Q3 2020 Financial Results

Growth Initiatives

Appendix A - Industry Overview

Appendix B - Additional Materials

Beijing United Family Hospital North (2020)

Leading Private Healthcare Service Provider in China

One of the LARGEST privatehealthcare service providers in China by revenue 2019A total revenue: RMB ~2.45bn

TOP-RANKED brand amonghigh-end private hospitals

COMPREHENSIVE

SERVICE OFFERING covering 30+ specialties

2015A-2019A CAGR: 15.1%

9 hospitals1 14 clinics1 1,000+ licensed beds 800+ physician staff 1000+ physician consultants 2019A outpatient visits: ~633,000 2019A inpatient visits: ~11,000

Source: Company; As of Dec 31, 2019

• 1. Includes 2 hospitals under construction,14 directly operated clinics

  Operating Assets2

  2019A Pro-Forma Adjusted EBITDA: RMB 483mm

  2015A-2019A CAGR: 30.4%

  Beijing United Family ONLY JCI and CAP accredited hospital

  FIRST da Vinci and MAKO in private hospital

  GCP certification from CFDA for conducting clinical drug trials

• 2. Operating assets include Beijing, Shanghai Puxi, Tianjin, Qingdao and Beijing Rehab Hospitals as well as Bo'Ao and Hangzhou Clinics and post-partum care worker business

  ALL3 JCI accredited

• 3. All hospital and clinics with at least 3 years of operating experience are accredited or re-accredited on a 3-year cycle. The newest Qingdao and Shanghai Pudong hospitals were not yet eligible in the 2017 audit, but

Qingdao will be included in the 2020 audit and Pudong will be eligible in the next cycle.

Nationwide Geographic Footprint

Guangzhou

Hainan

Shenzhen2

Source: Company; As of Dec 31, 2019

• 1. 5 hospitals in Beijing Cluster including Qingdao United Family and Tianjin United Family

• 2. UFH is expected to be given the exclusive right to manage New Frontier Group's 64,000 sq. meter flagship Shenzhen city center hospital as part of the transaction

Diversified Foundation for Future Growth

MULTI-SPECIALTY SERVICE OFFERING1

DIVERSIFIED PAYER STRUCTURE2

REVENUE MIX BETWEEN SERVICE & PHARMACYBROADER ADDRESSABLE MARKET WITH MORE LOCAL PATIENTS3

Expat 46%

Source: Company

Local 71%

• 1. OB/GYN: Obstetrics and Gynecology; Peds: Pediatrics; Ortho: Orthopaedics; FM: Family Medicine; IM: Internal Medicine; ER: Emergency Room; PPR: Post-Partum Rehab

• 2. Split by revenue from insurance / self-pay patients

• 3. Split by volume of expat and local Chinese patients

Comprehensive Provider with Entire "Lifecycle" Coverage

Hub-and-spoke model creates comprehensive healthcare services platform with multiple patient touchpoints

One of the Most Reputable Private Healthcare Brands in China

Ranks top for medical quality among high-end private hospitals by patients, doctors and government regulators

• ◼ 2003 - The designated healthcare institution for foreigners during the SARS period

• ◼ 2010 - Official designated medical institutions for the Shanghai World Expo

  • ◼ 2016 - Ranked No.2 in China Private Hospital Valuable Brands

  • ◼ 2016 - Ranked No.18 in China Private Hospital Conglomerates Top 50 League

• ◼ 2015 - Named as Most Investment-Worthy Healthcare Company

  • ◼ 2018 - The designated Well-Known Trademark

• ◼ 2016 - Ranked No.1 in China Top 100 Private Hospitals

• ◼ 2018 - Ranked No.1 repeatedly as The Best Employer among all private hospitals

Ranking score of private brands among monthly households income >RMB 27K1,2,3

1.85

1.64

D

Source: Company, Company Analysis

1.37

1.75

UFHA

B

C

E

UFH

1.64

A

B

C

D

E

UFH

A

• 1. Survey Question 4: Please rank the following private hospital brands' medical quality. Screening criteria: Have had any kind of medical treatment in private hospital in past 36 months

• 2. Scoring methods: a) Score 5 for brand ranked 1st; Score 3 for brand ranked 2nd; Score 1 for brand ranked 3rd; b) Divide summed score by the number of respondents

• 3. Sample size for Beijing, Shanghai and Guangzhou were 105, 110 and 62 respondents, respectively

B

C

D

E

Asset Overview

UFH

JCI- Accredited

Beijing City Cluster

Shanghai City Cluster

Greater Bay Cluster

Source: Company; As of Dec 31, 2019 Note:

• 1. New Shanghai Puxi is the expansion of the old Shanghai Puxi

• 2. Includes satellite clinics associated with hospitals

• 3. Includes Building A and additional capacity from Building B expansion; Revenue per sqm only accounts for the 20,057 sqm currently in use

• 4. Stands for the maximum bed capacity as of fiscal year-end

• 5. Stands for the maximum number of consultation rooms designed

2019 Revenue / Pro-forma Adjusted EBITDA1 Summary

FY2019 Revenue (in million RMB)

2,449

1,811

Tier 1 Operating Tier 2 OperatingExpansion

Assets Y-o-y Growth

& Other Assets

Assets

Total

9%

21%

170%

19%

Revenue per Bed2 Beijing3 14.0

1.7 1.5 4.6

Shanghai4 10.8

280

359

Notes:

1. See slide 46 for a reconciliation of net loss to Pro-forma Adjusted EBITDA

2.Revenue per bed is calculated based on the weighted average maximum bed capacity of the fiscal year

3.Refferring to Beijing United Family Hospital in Chaoyang as its associated clinics

4.Referring to Shanghai Puxi United Family Hospital and its associated clinics. Maximum bed capacity for Shanghai Puxi United Family Hospital increased with the relocation to new site in Q4 2019

Significant White Space for Growth in Tier 1 Cities1

Tier 1 Cities

Total Resident Population4

~74 million

Tier 1 Cities

Target Addressable Market3

~4.1 million

~5%

Tier 1 Cities # of UFH Patients2

~200,000

Significant white space within Tier 1 Cities for future growth

Source: Company Analysis, National Bureau of Statistics

• 1. Tier 1 Cities include Beijing, Shanghai, Guangzhou and Shenzhen

• 2. Number of unique UFH patients in Tier 1 cities in 2019

• 3. Addressable market includes target expatriate population, local population with out-of-pocket payment and local population with premium healthcare insurance coverage as of 2018

• 4. Number of residents in Beijing, Shanghai, Guangzhou and Shenzhen as of 2018

Q3 2020 BUSINESS HIGHLIGHTS

Shanghai United Family Pudong Hospital

Q3 2020 Operational and Financial Snapshot

Operational Snapshot

Outpatient Visit

152,951 Visits

Outpatient ASP

-0.5% YoY 21.7% QoQ

RMB 2,580 9.4% YoY

Inpatient AdmissionInpatient ASP

2,210 Admissions

-15.1% YoY

7.3% QoQ

RMB 103,386 15.2% YoY

Compared to 39.4% in 3Q19

1. See slide 46 for a reconciliation of net loss to Adjusted EBITDA (before IFRS 16 Adoption)

Utilization Rate33.7%

Financial Snapshot

Total Revenue

RMB 626.6 mn

3.7% YoY 14.1% QoQ

Adjusted EBITDA

(before IFRS 16 Adoption)1

RMB 89.9 mn 162.8% YoY

Notes:

Strong Revenue Growth for Both Local and Expat Patient Base

Y-o-y % of 2020 Quarterly Revenue

2019 Rev. Level

2020 Q1

• ◼ Continued strong local demand

  contributed to the rapid recovery, demonstrating high resilience of our local customer base

• ◼ Revenue from expat patients also recovered strongly in the quarter despite continued restrictions on inbound travel to China through the end of Q3

  Q2

  LocalExpatTotal

  Notes:

  1. Above this line indicates y-o-y growth while below the line means y-o-y decline due to COVID-19.

  Q3

• ◼ On September 28th, Chinese government announced to ease the travel restrictions of foreign nationals into China. As a result, we expects to see continued recovery of expat patient base

Strong Growth in Major Specialties despite headwinds in Obstetrics and Pediatrics

More Local Patients

All Major Specialties Recovered in Q3 Except for OB / Peds

Patient Mix1

Notes:

• 1. By number of patients

• 2. As of September 2020

2020Q3 Revenue Y-o-y Growth

(%)

Overall

Emergency

Surgery

OrthopedicsInternal MedicineOBGYNFamily MedicinePediatrics

◼ OB/GYN: Lower admissions due to nation-wide low birth rates in 2020

◼ Pediatrics: Lower admissions throughout UFH's facilities, as schools remained closed and enhanced personal hygiene and protective measures for school children were implemented

GZU: Positive EBITDA for 6 Consecutive Months with 9% EBITDA Margin in Oct.

After only 21 months of Operations1

Guangzhou United Family Hospital 2020 Monthly Revenue (Y-o-y%)

Notes:

1. Since the hospital obtained its OB license

New Project Update: Shenzhen New Frontier United Family Hospital

• ◼ Shenzhen New Frontier United Family Hospital ("SZU") is on track with its construction schedule despite the effect of COVID-19 situation, and is expected to commence operations in Q3 2021

• ◼ Upon completion, SZU will be the largest UFH hospital with a gross floor area of 63,645 sqm and 350 beds, with state-of-the-art equipment including PET/CT and linear accelerator. SZU is planning to have 22 specialties ranging from Obstetrics, pediatrics, family medicine, emergency medicine to oncology, internal medicine and general surgery

• ◼ Top management positions such as GM, CMO, CNO, CRO, HR Director are confirmed while some specialty chairs are being finalized

• ◼ Marketing campaigns to promote SZU and educate local market are under preparation and are planning to launch in Q1 / Q2 2021

New Project Update: Beijing Jingbei Women and Children's United Family Hospital

• ◼ Beijing Jingbei Women and Children's United Family Hospital ("DTU") is designed as a level III Women and Children's hospital with 200 licensed beds, aiming to provide comprehensive OB/ GYN, PPR, pediatrics and other consumer healthcare services (e.g. dental, ophthalmology, dermatology, vaccination, etc.) to attract and capture affluent younger customers in the north-west of Beijing

• ◼ Expected to complete construction and soft open in March 2021

• ◼ Secured the recruitment of a number of external clinical talents in core specialties incl. OB, gynecology, Pediatrics, PPR and FM with confirmed staff internal transfer plan from other UFH facilities in Beijing to support the new hospital

Ramp-up Strategy

Hospital Revenue (mm RMB)

1,100

1,050

1,000

1997

950

900

850

800

750

700

650

600

550

500

450

400

350

300

250

200

150

100

50

0

1998

1999

2000

2001

2002

2003

2004

2005

Source: Company (Unaudited); As of September 30, 2020

• 1. Since the hospital obtained its OB license

• 2. Run-rate revenue is defined as quarterly revenue * 4

  Due to capacity bottleneck with only 5,886 sqm, Shanghai hospital struggled to take on additional patient volume and develop higher acuity services. Capacity issue was solved in October 2019 when Shanghai hospital moved to a new site with 19,172 sqm of facility size

  by Sep-20 (Month 251)

  TJU (6,900 sqm)

  2006

  2007

  2008

  2009

  2010

  2011

  2012

  2013

  2014

  2015

  2016

  2017

• 3. Only 20,057 sqm Building A is currently in use and contributes revenue for now; total GFA is 30,057 sqm which includes Building A and additional capacity from Building B expansion

BJU (24,959 sqm)PXU (previously 7,559 sqm; 20,844 sqm after relocation)GZM (69,008 sqm) 20Q3 Run

Rate Revenue2 (RMB 237mm)

PDU (28,471 sqm) 20Q3 Run

Rate Revenue2 (RMB 158mm)

by Sep-20 (Month 231)

2018

2019

2020

Lease Renewal of Building 1 of Beijing United Family Hospital

Situation Overview and Plan for BJU Building 1 Lease Expiration

• ◼ The lease on Building 1 of the BJU campus started in 1995 and was renewed in 2016.

• ◼ The renewal expires on December 31, 2020, and an extension agreement has not yet been reached.

• ◼ Provisions are underway for potential non-renewal, with plans for certain

  existing operations to be relocated to the existing UFH satellite clinics and

  other UFH facilities in Beijing.

• ◼ Majority of the clinics will be relocated to Building 2, in addition to some newly-leased, street front commercial space adjacent to the hospital.

• ◼ Losses in patient maternity rooms will be supplemented by a new space in

  the new Beijing Jingbei Women and Children's United Family Hospital

  ("DTU")

Various Strategic Co-operations Kick-Off in Qingdao

Signing of Cooperation Agreement with
Opening of Oncology Center at QDU
Shandong University Qilu Hospital
◼ Offer UFH patients a deeper bench in medical specialty	◼	Completed construction of its Radiation Therapy Cancer
talents with multi-site practice of top public hospital (i.e. Qilu	Treatment Center
Hospital) physicians	◼	To be managed jointly by QDU and Icon under profit-sharing
◼ Provide traditional patients of the public tertiary facility options	model
to seek faster access and more personalized care at UFH
Qingdao facility

◼ Housing a state-of-the-art Varian Linac

◼ Expected to attract cancer patients, who could also bring revenues from imaging, laboratory and surgery to the hospital

The various new co-operations are expected to help enhance UFH's medical capability and expand its patient base

Notes:

1. Icon Corporation is the largest cancer diagnosis and treatment service provider in Australia

Strategic Priorities for 4Q 2020

• ◼ Market Level Organizational Consolidation and Optimization

• ◼ Ramp-up of Newly Opened Facilities (Shanghai Puxi, Shanghai Pudong and Guangzhou)

• ◼ Invest in Core Markets and Expand Capabilities in Selected Specialties

• ◼ Prepare for launch of New Internet Hospital Initiative

• ◼ Continue with Cost and Cash Control / Business Recovery Post Coronavirus

• ◼ Prepare for the Launch of Beijing Datun Hospital and Shenzhen Hospital

Shanghai United Family Hospital

Q3 Revenue Continued Recovering and Recorded Y-o-y Growth

Revenue

(in million RMB)

Y-o-y Growth

14%

-25%

-13%

4%

Operating Tier 1Operating Tier 2 & Other AssetsExpansion

Outpatient and Inpatient Volume by Segment

Y-o-y Growth

Y-o-y Growth

164,010

11%

163,436

-41%

0% 22%

-23%

-3% 28%

18Q1

18Q2

18Q3

18Q4

19Q1

19Q2

19Q3

19Q4

20Q1

20Q2

20Q3

18Q2

Y-o-y Growth

20%

2,912

-21%

18Q1

18Q3

18Q4

19Q1 19Q2 19Q3 19Q4

Operating Tier 1Operating Tier 2 & Other AssetsExpansion

20Q1

Notes:

1. Due to lower admissions in the pediatrics department throughout UFH facilities, as schools stayed closed and enhanced personal hygiene and protective measures for school children were implemented

-24%

-15%

-30% 25%

20Q2

20Q3

ASP1 Increased in Q3 Due to Higher Acuity Procedures

9%

Y-o-y Growth

18Q1

18Q1

18Q2

18Q3

18Q4

19Q1

19Q2

19Q3

19Q4

20Q1

20Q2

20Q3

1. Average selling price

Notes:

18Q2

18Q3

18Q4

19Q1

19Q2

Y-o-y Growth

19Q3

2%

19Q4

-3%

20Q1

13%

11%

20Q2

16%

9%

20Q3

15%

Adjusted and Pro-forma Adjusted EBITDA1

Pro-forma Adjustments1

Y-o-y Growth

Tier 1 Operating

AssetsTier 2 Operating and Other Assets

Unallocated HQ ExpensesTotal

Notes:

1. See slide 46 for a reconciliation of net loss to Adjusted EBITDA (before IFRS 16 Adoption) and Pro-forma Adjusted EBITDA

Operating Expenses

Lowered Cost Structure Due to Cost Saving Initiatives

Notes:

• 1. 2020 Q3 decreases primarily due to a reduction in rental expenses as a result of government policies implemented during the pandemic.

• 2. 2020 Q3 increases due to fair value appreciation of plant and equipment, contracts with insurers related to the business combination, and full depreciation of the expanded PXU facility.

• 3. 2020 Q3 is an expense of RMB0.6 million due to the increase in trade receivable as a result of revenue growth.

Strong Balance Sheet and Positive Free Cash Flow in Q3 2020

Notes:

• 1. Adjusted operating cash flow is defined as cash generated for operating activities less capital lease payments, adding back interest expense and one-off transaction related costs. See slide 45 for detailed reconciliation

• 2. Free cash flow is defined as operating cash flow less maintenance CAPEX

Qingdao United Family Hospital

Shared Risk Model

Managed Care

Risk shared by UFH and insurer

• ◼ Partnering with patients to use pro-active approaches to keep them healthy

• ◼ Patients stay healthy and we have healthy margins

• ◼ Giving patients transparency and predictability in their healthcare expenditures

Enhance Clinic Networks in Existing Markets

Integrated Healthcare Services Model Generating Significant Synergies. Continue to Replicate Outpatient Networks in Existing Markets

SUCCESSFUL HUB & SPOKE BUSINESS MODEL

Hospitals

Source: Company; As of Dec 31, 2019

Significant Referral Revenue from Beijing Clinics

(RMB mm)

9.7%

2016

2017

Beijing Hospital referral revenue from clinics

Contribution to hospital revenue

2018

2019

Upside Catalysts Delivering Additional Value

◼ Grow IVF from Tianjin to nationwide

• ◼ Focus on increasing acuity services (robotics, oncology, advance imaging) to drive ASP / margin and create higher barriers to competitors

• ◼ Develop internet hospital and online portal to further engage with patients

◼ Continued investment in the AI and mobile technology for data analytics, online consultation, risk underwriting, preventive care

◼ Continue deep specialization in select areas but maintain a comprehensive suite of services

◼ New centers of excellence: oncology, orthopedics, ENT, sleep center, geriatric center, gynecology, advanced surgical, etc.

◼ Strategic acquisitions of specialty hospitals, outpatient and services network to further complement our existing portfolio

◼ Management contracts include a right to acquire managed hospitals

Investment Highlights

APPENDIX A - INDUSTRY OVERVIEW

Rapid Growth in Demand for Healthcare Services

REVENUE FOR HEALTHCARE SERVICES IN CHINA - HOSPITALS & PRIMARY CARE

2013A

CAGR CAGR 13-18 (%) 18-23 (%)

2014A

2015A

2016A

2017A

2018A

2023E

• 22% 21%

• 11% 9%

PREMIUM HEALTHCARE EXPENDITURE2 IN CHINA

(US$ bn)1

40

2013A

2014A

2015A

2016A

2017A

2023E

CAGR CAGR 13-17 (%) 17-23 (%)

• 23% 20%

• 25% 22%

PrivatePublic

Source: NHFPC, Company Analysis

• 1. Exchange rate at USD:RMB = 1.00 : 6.80

• 2. Annual high-end medical spending by residents (Expatriate, Local out of Pocket, Local Insured Patients) in Tier 1 & Tier 2 cities of China Local out of Pocket is defined as affluent households with annual income > RMB 324K

  1st tier2nd tier

  Assumed addressable population all live in Tier 1 and Tier 2 cities; Tier 1 cities: Beijing, Shanghai, Guangzhou and Shenzhen; Tier 2 cities: 46 cities incl. Tianjin, Nanjing, Hangzhou, Chongqing, Chengdu, Ningbo and etc.

China is Under-penetrated in Private Healthcare

Countries and Regions

85

(US$ '000)GDP per capita

80

75

70

65

60

55

50

45

40

35

30

25

20

15

10

5

0

0

Asia

EU

NA

AU

LatAm & Africa

300

400

500

600

700

Private healthcare spending per capita (US$)

Source: EIU, Euromonitor, BMI, Hong Kong Food and Health Bureau; As of 2017

800

900

1,000

1,100

1,200

1. Tier 1 cities include Beijing, Shanghai, Guangzhou and Shenzhen. Private healthcare spending per capita assumed to mirror private vs. public hospital revenue trends in China

1,300

5,300

Top Trends in the Chinese Public and Private Hospital Sectors

TOP TRENDS IN THE PUBLIC HOSPITAL SECTOR

SCARCITY AND UNEVEN DISTRIBUTION OF QUALITY MEDICAL RESOURCES

Class III: 2,232 (8%)Class II: 7,944 (27%)

Class I: 9,282 (32%)Unrated: 9,682 (33%)

# of Hospitals in China

# of Annual Hospital Outpatient Visits (mm)

Class III: 1,628 (50%)Class II: 1,217 (37%)

Class I: 218 (7%)Unrated: 207 (6%)

IMMENSE PRESSURE ON PUBLIC HEALTHCARE SYSTEM

3+ hours

Average time to visit a physician

<5 mins

Actual time spent in a physician consultation

90+%

Average bed occupancy rate in public hospitals

EXPECTED DEFICIT OF THE BASIC SOCIAL MEDICAL INSURANCE

(RMB bn)

2020E

2026E

Deficit is expected to arise

TOP TRENDS IN THE PRIVATE HOSPITAL SECTOR

specialty / low acuity situations

− Huge under supply of premium hospitals

Private hospitals in China are facing challenges that present unique opportunities for a branded comprehensive player like UFH

(2,300)

Source: Frost & Sullivan, PwC survey on urban middle class Chinese, National Health and Family Planning Commission, Company Analysis; As of 2016

Highly Fragmented Market

− Limited scaled players provide opportunity for a large,

branded player like UFH

Lack of a Comprehensive Service Provider

− Most private hospital systems are focused on a single

Willingness to Pay

− >80% of patients are willing to pay a premium to visit a private hospital

Aging Population and Commercial Healthcare Insurance are Key Long-Term Growth Drivers of Healthcare Services

RAPIDLY AGING POPULATION

China population aged 65+ (Persons mm) 400

200

0

2012A

2000A 2010A 2020E 2030E 2040E

China Population Aged 65+ (Persons mm)

Population Aged 65+ as % of Total Population

COMMERCIAL HEALTH INSURANCE GWP1 (US$ bn)2

2012A

2014A

2016A

Source: United Nations, China Insurance Yearbook, CIRC, McKinsey Global Institute, Company Analysis

2018E

2023E

• 1. Include all local and foreign players. Health insurance GWP (gross written premium) includes premium sold by both life and P&C insurers

• 2. PHI = Private Health Insurance

• 3. Exchange rate at USD:RMB = 1.00 : 6.80

HIGH-END PHI2 ADDRESSABLE POPULATION ('000)

2014A 2016ATier 1 cities

2018E 2023ETier 2 citiesCAGR CAGR 12-18 (%) 18-23 (%)

• 15% 15%

• 28% 25%

APPENDIX B - ADDITIONAL MATERIALS

Summary Shareholder Structure1,2 of NFH

61%

UFH Management

Free Float (%)

~90

10%

Capital Group

Other Public Investors

Note:

• 1. 131mm shares outstanding before accounting for roll-over NFH ESOP from UFH management and SPAC warrants (currently out-of-the-money).

• 2. As a result of the execution of the Fosun Director Nomination Agreement, Vivo Director Nomination Agreement, Irrevocable Proxies, and Director Support Letter Agreements, each Reporting Person may be deemed to be members of a "group" within the meaning of Section 13(d)(3) of the Exchange Act with NFPH, Vivo LP and Fosun with respect to the election of directors of the Issuer as described in Item 4 of this Amendment No. 1. As a result, the group may be deemed to have acquired beneficial ownership of all the Ordinary Shares beneficially owned by each member of the "group" and each Reporting Person may be deemed to beneficially own all of the Ordinary Shares beneficially owned by the group. As such, the group may be deemed to beneficially own in the aggregate 81,096,625 Ordinary Shares, which represents approximately 55.5% of the total outstanding Ordinary Shares.

Management Team of NFH

Chairman of the Board

• ▪ Chairman of NFH

• ▪ Chairman / Co-Founder of New Frontier Group

• ▪ Chairman of Nan Fung Group

• ▪ Former HK Financial

Antony Leung

Secretary

• ▪ Former Chairman of Blackstone Greater China, JP Morgan Asia

Executive Committee of the Board of Directors

• ▪ CEO of NFH

• ▪ Founder of United Family Healthcare

  • ▪ President and Chairman of Executive Committee of NFH

• ▪ Medical industry experience: 35+ years

  • ▪ CEO / Co-Founder of New Frontier Group

    • ▪ Managing Partner, Co-CEO of Vivo Capital, CEO of Vivo Capital Greater China

      Roberta Lipson

• ▪ One of the most well-regarded healthcare executives in China

Carl Wu

• ▪ Experienced healthcare entrepreneur (Co-founder of Care Alliance, YD Care, and Heal)

  • ▪ Former Senior Managing Director and Chief Representative of Blackstone China

    Shan Fu

• ▪ Former Managing Director at Blackstone

• ▪ Department of Foreign Investment in National Development and Reform Commission (NDRC)

• ▪ State Economic and Trade Commission

Experienced Board of Directors

Non-Independent

Directors

• ▪ Chairman of NFH

• ▪ Chairman / Co-Founder of New Frontier Group

  • ▪ President and Chairman of Executive Committee of NFH

    • ▪ CEO of NFH

    • ▪ Founder of UFH

  • ▪ CEO / Co-Founder of New Frontier Group

• ▪ Former Financial Secretary of Hong Kong

• ▪ Nan Fung Group Chairman and CEO

• ▪ Experienced healthcare entrepreneur (Co-founder of Care Alliance, YD Care, and Heal)

  • ▪ Medical industry experience: 35+ years

    Antony Leung ▪

    Blackstone Chairman of Greater China

    Carl Wu

    • ▪ J.P. Morgan Chairman of Asia

• ▪ Founding member of Blackstone Asia Pacific and Blackstone China

  Roberta Lipson

  • ▪ One of the most well regarded healthcare executives in China

  • ▪ Citibank Head of China & Hong Kong and Private Bank for Asia

  • ▪ Executive Director and the Co-CEO of Fosun International

• ▪ Managing Partner, Co-CEO and CEO of Vivo Capital in Greater China

  • ▪ COO of NFH

    • ▪ Executive Director and the Chairman of Fosun Pharma

• ▪ Senior Managing Director and Chief Representative of Blackstone

  • ▪ Managing Director of New Frontier Group

    Qiyu Chen

    • ▪ Non-executive director and Vice Chairman of Sinopharm Group

    Shan Fu

• ▪ Department of Foreign Investment in National Development and Reform Commission (NDRC)

  • ▪ Blackstone Private Equity Group (HK)

  David Zeng ▪

  Barclays

• ▪ State Economic and Trade Commission

Independent Non-executive

Directors

• ▪ Senior Advisor of New Frontier Group

  • ▪ Senior Advisor of New Frontier Group

    • ▪ CEO of the Samling Group

• ▪ Hong Kong University Council Chairman

• ▪ Non-official member of the Executive Council of HKSAR

  • ▪ Independent Non-Executive Director of Guangshen Railway

    • ▪ Former CEO of Deloitte China

  • ▪ Non-executive Chairman of MTR

    • ▪ Former Executive Committee of Deloitte Touche Tohmatsu Limited

• ▪ Hong Kong Hospital Authority Chairman

• ▪ Member of Hong Kong Legislative Council

• ▪ Secretary for Commerce & Economic Development of HKSAR

  • ▪ Independent Non-Executive Director of BC Technology Group

    Dr. C H Leong

    Frederick Ma

• ▪ Secretary for Financial Services and the Treasury for HKSAR

  Lawrence Chia

• ▪ CFO of PCCW

• ▪ Over 30 years of experience in financial advisory and corporate finance in Greater China

Strong Cash Flow and Balance Sheet

(RMB million)	3Q20
Operating Cash Flow & Free Cash Flow:
Cash Flow Generated from Operating Activities	49
Less: Capital Lease Payments1	(40)
Add: Interest Expense Paid	34
Add: One-off Transaction Expense Paid	6
Adjusted Operating Cash Flow	49
Less: Maintenance CAPEX	(15)
Free Cash Flow	34
CAPEX:
Maintenance CAPEX2	15
Expansionary CAPEX3	75
Total CAPEX	90

Notes:

• 1. Due to IFRS 16 adoption, capital lease payments is categorized as cash used for financing activities.

• 2. Maintenance capex is defined as all capex spent for existing operations of the facilities.

• 3. Expansionary capex is defined as capex spent for building new facilities including the new site of Shanghai Puxi Hospital, Shanghai Pudong Hospital, Guangzhou Hospital and Beijing Jingbei Women and Children's United Family Hospital ("DTU")

Reconciliation of Non-IFRS Financial Measures

Net loss

(223)

(430)

(86) (70)

Less: Finance income

(1)

(2)

(1) (1)

Add: Finance costs

54

157

33 62

Add: Foreign exchange loss/(gain)

(13)

Less: Gain on disposal of a subsidiary

-

9 -

21 30

- (1)

Less: Other (income)/expenses, net

13

6

(6) 5

Add: Income tax expense/(benefit)

15 10

Operating (loss)/income

(24) 35

7 (163)

63 (198)

Add: Share-based compensation expense/(benefit) Add: Depreciation and amortization

2

34

10 (3)

88

342

85 105

Add: Discontinued monitoring fee payable to Fosun Pharma and TPG1 Add: One-off transaction costs

1

4

147

160

Add: Relocation costs of New Puxi Hospital Add: Severance costs

1 9 3 -

- 1 - 2

Adjusted EBITDA

84 140

Less: Lease expense adjustments as a result of IFRS 16 adoption Adjusted EBITDA (before IFRS 16 adoption)

3 - 79 (53) 26 2

6 - 349 (205)

(50) (50)

144 19

34 90

28

163

34 90

Add: PXU Pro-forma Adjustments2 Pro-forma Adjusted EBITDA

Notes:

• 1. Monitoring fee payable to TPG and Fosun is not related to business operation and is discontinued from 2020 onwards.

• 2. The adjustments include (i) giving a pro forma effect to annual rent reimbursement of approximately RMB15 million which took effect in November 2019 as if such reimbursement commenced on January 1, 2019, (ii) adding back RMB 3.7 million for additional rental expenses incurred prior to the PXU relocation due to space constraints, and (iii) RMB 3.7 million of ongoing net savings on fees payable to our business partner for this property in accordance with the rental reimbursement.