Burjeel Holdings PLC (BURJEEL) Earnings Call Transcript & Summary

Good afternoon, everyone, and thank you for joining today's investor call. This call follows Burjeel Holdings' recent announcement regarding the Board approved appointment of Dr. Shamsheer Vayalil as the Chief Executive Officer. The purpose of today's call is to allow investors to hear directly from Dr. Shamsheer and to ask questions related to the announcement. Before we begin, I would like to note the standard forward-looking statement disclaimer shown on the screen. With that, I will hand over to Dr. Shamsheer.

Good afternoon, everyone. I hope all -- whosoever is in Dubai is enjoying the rain. So as you will have seen from our recent announcement, the Board has approved my appointment as Chief Executive Officer, subject to the required shareholder and regulatory approvals. We wanted to take the opportunity to speak directly with the investors, outline the Board's rationale for this decision and address any questions you may have. I want to be clear at the outset that this transition does not represent a change in strategy or direction for Burjeel Holdings. Our priorities remain exactly as previously disclosed with continued focus on disciplined execution, clinical excellence and long-term value creation. Governance was central to the Board's consideration and the decision is being implemented through a structured process, including enhanced independent oversight and shareholder approval. With that, I'm happy to take your questions.

[Operator Instructions] Okay. We have received some text questions. I'll read them combined by the person. So we -- the first question from -- a set of questions comes from [indiscernible] retail investor. Why are you stepping into the CEO role now? How should investors think about governance with the Chairman and CEO roles combined? And what safeguards are in place? As the major shareholder, did you drive this decision?

Thank you. As Chairman of the Board, I supported the Board's conclusion that the company has reached a stage where closer alignment between strategy and execution is going to be beneficial. And there is no better time than now. So I was also aligned. And from a shareholder perspective, I agree with the view that we have to create long-term value. And on a personal level, I'm stepping into the role to focus on execution and accountability within the strategy, where I feel now the buck stops with me. So again, it's again a very clear execution strategy more than a role change. About the governance, again, we have been always thinking governance is not just when it comes to the Board, but it is a way of life. And it was central to this decision. The Board would not have supported the combination without clear safeguards. So again, this is being implemented with the governance with the SCA code and is subject to shareholder approval. And it is supported by a strengthened independent Board, fully independent committees and a dedicated governance committee that oversees the performance evaluation. So for me, as Chairman and to create long-term value creation, I'm fully committed to operating within the framework. And the third piece of this is, did I, as a shareholder, drive this decision? No, I supported the decision. I did not drive it. I supported the outcome because it aligns with the long-term value creation. And importantly, it is being implemented through the shareholder approval and enhanced independent oversight, which I fully support. And there is no change whatsoever in the way the normal business will be conducted. Thank you.

Our next text question comes from Neetika Gupta from Franklin Templeton. What would be your key priorities in the new role?

So as I said, Neetika, we are not going to change any goalpost. For us, we have been focused on enhancing the clinical specialties. For us, it is always about going up to things like clinical trials, education and training. And those are going to be the #1 priorities. And there are certain verticals that we are very keen on implementing at this stage because we have built the scale, we have built the networks. Now it is important to connect the dots. And from a strategy to execution, I'm of the opinion that it should be a lead from the front rather than riding it from the back seat. So for me, it's going to be more ground execution of the strategies that has been planned for a very long time, especially around the complex care. And complex care means most of the things that we would have demonstrated in the last many calls that you would have seen, especially around cancer, especially around rare diseases and stuff like that. So it is going to be, again, an execution strategy rather than anything new that is going to come.

[Operator Instructions] So we have a next text question from [indiscernible] retail investor. What role will independent directors play going forward?

So the independent directors will continue to play a central role in all the oversight. So the Board will be reconstituted to ensure a strong independent majority and the Audit, Nomination and Remuneration committees will completely be of independent members. And when there is any potential conflict, discussions will be chaired by an independent director.

Okay. Thank you. So moving on to the next question from Jennifer Passmore from HSBC. Will there be a return to a professional management team in time?

For sure.. There's again the switch when I have to come back to make sure that the focus is more on the units. We have always been -- our pillar for growth has been the strong units that we have built, especially BMC and Burjeel, which are our -- the best assets, which needs to be completely monitored and pushed by a professional management team, and it will happen in time. So this is going to be some of my early priorities. It's going to be a 90-day plan that we are already constituting and we are planning on a major meetings, which is going to happen in the second or third week of Jan. So definitely, as you have seen, the way we have conducted business is all with professionalism and the management team also will follow.

Okay. Thank you very much. So we have next -- a few text questions from [indiscernible] Capital. Is the strategy execution primarily focused on the UAE around Burjeel Medical City? What does this mean for the Saudi strategy? Is there a possibility that you will pursue M&A with related entities such as Response Plus or Cambridge Health under Amanat? How will your involvement with Amanat change?

Francis, thank you for those questions. And you always seen me as Amanat, Burjeel, RPM, and I always said there is enough and more time for interesting projects for me. And I take things on time. And for me, very important is to finish my executions on time. So it's all about project management, bringing the right team, bringing people who knows what the values and what needs to be focused. And it's more of an executive role. And we -- as you have known that recently, we have done an IPO under Amanat. So again, for me, it's about strategy into execution is my cup of tea. So no strategy -- there is no shift in strategy. The products are coming from UAE. What happens in Saudi is a direct success of our product execution in UAE, be it our oncology strategy in BMC or our day surgery strategy that we have built. And what Saudi wants is refined projects and products, which we are very good in crafting. And that is where the growth market is going to be mostly around expanding our specific service clients into Saudi Arabia. So there is no change on strategy levels, expansion market, Saudi is going to be very big. And regarding the time, I always feel it's a question that I've been hearing for a very long time. But it's about how I walk the talk in terms of what roles I do. I do full justice. And I don't affect one role to affect the other because it is all based on governance and transparency and most of the companies are public listed as well. So again, disclosures and the way that we have dealt, it's not happening from yesterday, it has been happening for a very long time, and we are used to managing the conflicts in the right governance structure as much as possible. Francis, I hope that answers your questions.

So our next text question comes from [indiscernible] a retail investor. Does this change have any implications for financial guidance or capital allocation?

No, there is no change to financial guidance or capital allocation priorities or the group's financial strategy as a result of this transition. And any future updates will continue to be communicated through the usual reporting channels.

[Operator Instructions] we have a follow-up question from Neetika Gupta from Franklin Templeton. Is this transitionary role while the Board looks for another candidate to step in for the role of CEO of Burjeel Holdings?

So I don't want to call it as a transitionary role. I just don't want to fill in any gaps, which never used to exist. For me, it's again pushing down on the execution mode will be interesting for me to see how we can also unlock values because we are seeing through multiple lines of businesses that are right for scale. For example, laboratory, diagnostics, oncology platform, neuro rehabilitation units. So for me, it's, again, important to make sure that it is not an interim 3 months or a 6 months position, that's for sure. But for me, it's all about executing the vision of the company, and it won't be a quick transit. I'm sure that I will have to spend some time to ensure that the position is justified. And I don't take easy on my positions. I take positions and I take it seriously. So it won't be a quick somebody coming in or waiting or filling that position, that's not the purpose of this change at all.

[Operator Instructions] Okay. We are seeing no further questions from the audience. So I'm going to pass the line to the company for their remarks.

Thank you, everyone, for the questions and for taking the time to join today's call. I appreciate the engagement and thoughtful discussions. To reiterate, I remain fully committed to the long-term success of Burjeel Holdings, and I look forward to continuing our dialogue with you as we move forward. Thank you again.

Thank you. This concludes the call for today. We are now closing all the lines. Thank you, and goodbye.