20120522 BH InvestorPRESN

7/27/2019 20120522 BH InvestorPRESN

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Bumrungrad Hospital Public Company LimitedInvestor Presentation

May 2012


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Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or

the solicitation of an offer or invitation to purchase or subscribe for any securities of Bumrungrad Hospital Public Company Limited (the

"Company") in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or

commitment whatsoever.

This presentation is being communicated only to persons who have professional experience in matters relating to investments and/or

to persons to whom it is lawful to communicate it under the laws of applicable jurisdictions. Other persons should not rely or act upon

this presentation or any of its contents.

Certain information and statements made in this presentation contain the Company's forward-looking statements. All forward-looking

statements are the Company's current expectation of future events and are subject to a number of factors that could cause actual

results to differ materially from those described in the forward-looking statements. Prospective investors should take care with respect

to such statements and should not place undue reliance on any such forward-looking statements.

This presentation has been prepared by the Company solely for the use at this presentation. The information in this presentation has

not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on,

the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the Company, any of

its affiliates or any of their respective agents, advisors or representatives, shall have any liability (in negligence or otherwise) for any

loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this

presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change

without notice and its accuracy is not guaranteed. None of the Company, any of its affiliates or any of their respective agents, advisors

or representatives, makes any undertaking to update any such information subsequent to the date hereof.

This presentation should not be construed as legal, tax, investment or other advice. No part of this presentation shall be relied upon

directly or indirectly for any investment decision-making or for any other purposes. Prospective investors should undertake their own

assessment with regard to any investment and should obtain independent advice on any such investments suitability, inherent risks

and merits and any tax, legal and accounting implications which it may have for them.

Certain data in this presentation were obtained from various external data sources, and none of the Company, any of its affiliates or

any of their respective agents, advisors or representatives have verified such data with independent sources. Accordingly, the Company

makes no representation as to the accuracy or completeness of those data, and such data involve risks and uncertainties and are

subject to change based on various factors.


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Agenda

Overview

Strategy

Operational Update

Financial Performance

Associated Companies


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Fact SheetEstablished in 1980; listed on SET in 1989

Bumrungrad International Hospital

Facilities

One of the largest and most sophisticated

private hospitals in South-East Asia

538 licensed inpatient beds and over 4,500

outpatient visit capacity per day

Thailands leading tertiary medical center

Accreditation

1st hospital in Asia to receive US JCI

Accreditation, with additional certifications in

disease specific categories

1st private hospital in Thailand with Thai

Hospital Accreditation

Patients

Over one million patient episodes annuallyOver 460,000 international patient episodes

annually from over 200 countries

Services

35 Clinics centers

BHPCL, an early mover in medical tourism, is an international leader in combining clinical quality with

customer service oriented patient care

Shareholding Structure

As of 15 Mar, 2012


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Realignment of the Corporate Structure

No active operation

Bumrungrad

International Ltd.(BIL)

Comprehensive wellness center

specializing in preventive care

Vitallife CorporationLtd.

31.5%100.0%

Bangkok Chain Hospital PCLDoing business as

Kasemrad Hospital Group

24.99%

Private Hospitals

Asia Global Research

Co., Ltd.

51.0%

Bumrungrad Medical

Center Ltd.

(BMC)

Clinical research

100.0%

Operates Bumrungrad International Hospital, Bangkok

Bumrungrad HospitalPublic Company Limited

(BHPCL)

No active operation

BIL ceased its operating activity. The second capital reduction was completed in 1Q12. As a result BHPCL

received Baht 271 million.


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BH - Management TeamBHs management team comprises individuals with extensive experience in healthcare management

K. Linda Lisahapanya

Managing Director

Dr. Sinn Anuras

Group Medical Director

Mr. Dennis BrownCorporate CEO

Mr. Mack Banner

CEOBumrungrad International, Bangkok

Mr. Dennis Brown

CEOBumrungrad International Ltd.

Vacant

CEOAsia Global Research Co., Ltd.

Mr. Anthony Tan

CEOVitallife Corporation Ltd.


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Doctors & Nurses

Leading medical staff provides first tier

clinical quality and customer-oriented

patient care

35 Clinics centers

Over 1,200 experienced doctors, of which

over 320 are US, UK or Australian Board

certified

Over 900 dedicated nurses


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Medical Tourism

Thailand

Skilled medical staff

Affordable wage levels

Warm and efficient service

culture

Focus on patient preferences

with a self-pay market

Significant general tourism

activity with global appeal

Regulations and attitudes

supporting private healthcare

Bumrungrad International

First tier medical staff

Transparency for inquiries

and patient cost estimation

Premium customer-focused

patient experience

Expansive serviceinfrastructure with overseas

referral offices, translators

and other services


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Premium Inpatient Facilities

Customer-oriented patient

service culture supported by

hotel-like ambience in a warmand restful environment


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Expansive Outpatient Facilities

Ground Floor Lobby

Sky Lobby

Large scale outpatient facilities allow extensive variety of services with privacy, comfort and efficiency

Welcome Center New Clinics


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Overview

Strategy

Operational Update



Agenda


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Strategy

Campus Expansion

Doctor Recruitment

BumrungradInternational

Hospital

Expand in our existing market segment2nd Campus

Expand into a new market segment2nd

Brand

Metro Bangkok

Invested in Kasemrad Hospital GroupMid Tier Market

Thailand

Review of selective opportunitiesInternational


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Campus Expansion

Move off campus into leased office space

Move into new BI Support BuildingBack office

Open 5 floors in Bumrungrad International Clinic

building

Expand clinics in Bumrungrad International HospitalBuilding

Clinics

Add 44 ICU beds and 61 ward beds in Bumrungrad

International Hospital building

Expand ancillary services

Inpatient

Bought 6,700 sq. meters of land on Petchburi Road.

Capability to construct building for back offices,employee housing and parking

Bumrungrad

International SupportBuilding

Est. Capital Investment

(Million THB)

Y11 Y12 Y13 Y14 Y15 Total

648 962 1,389 718 299 4,016


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Overview

Strategy

Operational Update



Agenda


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Overall Volume TrendInpatient and outpatient volumes increased

in 1Q12 compared with 1Q11, primarily dueto strong growth in international markets.

2.4%

Admissions

Average Admissions per Day

0.2% 4.9%9.3%

2.8%Visits

Average Visits per Day

4.9% 4.7%10.8%

14.4%2.4%

ADC

Average Daily Census

4.9%2.2%

24.4%

25.7%

8.4%


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Revenue per unit of service reflects

a 3.3% increase from the annual

price adjustment. The remainingamount is revenue intensity or

increased consumption:

OPD revenue intensity per visit

increased 5.0% in 1Q12.

IPD revenue intensity per

admission increased 5.7% from

increased length of stay.

IPD revenue intensity per

patient day increased 2.1% from

the international patients.

Revenue Intensity5.4%

Bt

Revenue per Visit

10.0% 4.3%8.2%8.3%

3.4%

Bt

Revenue per Admission

18.6% 20.1%9.0%

3.4%


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Volume Contribution by Nationality

Revenue Contribution by Nationality

International Breakdown For 1Q12, international revenue was up 17.7%

from 1Q11, primarily from revenue intensity.

Top 5 revenue contribution countries (1Q12)

56%59%60% 61%61%

44%41%39% 39%40%

0%

20%

40%

60%

80%

100%

1Q11 2Q11 3Q11 4Q11 1Q12

%o

fRevenue

International Thais

UAE 8%

USA 6%

Myanmar 5%

Oman 5%

Kuwait 4%


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Revenue BreakdownInpatient vs. Outpatient (% of revenue) Method of Payment (% of revenue)

1Q12

Revenue contribution for outpatient and inpatient services mostly in line with historical amount.

1Q12 Revenue growth:

Outpatient revenue increased by 14.7% y-o-y

Inpatient revenue increased by 15.6% y-o-y

Self-pay remains the primary method of payment

51% 51% 50% 49% 50%

49% 49% 50% 51% 50%

0%

25%

50%

75%

100%

1Q11 2Q11 3Q11 4Q11 1Q12

Outpatient

Inpatient


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Agenda

Overview

Strategy

Operational Update




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Operating Performance 2007-2011Total Revenues

Profit

EBITDA

2,070 2,1552,259 2,450

2,819

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2007 2008 2009 2010 2011

EBITDA(THBmm

)

8% CAGR

829

8,559

8,882 9,33810,056

11,306

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2007 2008 2009 2010 2011

TotalRevenues(TH

Bmm)

7% CAGR

458631,191

1,145

1,246

1,258

1,555

33

0

500

1,000

1,500

2,000

2007* 2008 2009 2010** 2011***

Profit(THBmm)

8% CAGR

DILUTED EPS

1.29

1.37 1.44

1.521.790.56 0.07

0.04

0.0

0.5

1.0

1.5

2.0

2007 2008 2009 2010 2011

DilutedEPS(THB)

9% CAGR

* One-time profit of THB 458 million in 2007 was share of profit in investment in GCS Thailand,

netted off with impairment of hospital software system

**One-time loss of THB 63 million in 2010 was loss on the translation adjustment from the sale of

Asia Renal Care (ARC) Group

*** One-time profit of THB 33 million in 2011 was tax loss on sale of BMC THB 106 million offset

with loss on sale of AHI THB 24 million and loss on share repurchase THB 50 million

9,388

BH reported a one-time gain on share of profit in investment in CDE Trading (previously GCS

Thailand) in 2007 of THB 829 million, mainly from sale of GCS Thailands assets

1,603 1.851.83

1,321

1,588

1.45

Remark: The calculation of CAGR is excluding the extraordinary items. Remark: The calculation of CAGR is excluding the extraordinary items.

Remark: The calculation of CAGR is excluding the extraordinary items.


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Margins & Trend

Margins have been strong and relatively stable over time

Net Profit Margin Trend

12.5%13.9%

13.3%13.3%

17.1%

0%

10%

20%

30%

2007* 2008 2009 2010 2011

*Net margin in 2007 includes the benefit of one-time non-operating items

EBITDA MarginTrend25.0%

24.4%24.2%24.2% 24.3%

0%

10%

20%

30%

2007 2008 2009 2010 2011


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1Q12 UpdateTotal Revenues EBITDA

Profit

THB millionTHB

million

THB

million

583

416

17.7%14.8%

0

100

200

300

400

500

600

700

1Q11 1Q12

5%

10%

15%

20%

25%

Prof it Net Prof it Margin As a result of the robust revenue growth, cost

efficiency, and reduced statutory corporate

income tax rate, net profit jumped by 40.1% in

1Q12 from the same period in the prior year,

and the Net profit margin improved 19.6% from

14.8% to 17.7%

15.6%

40.1%

18.2%


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Leverage

0.6

0.4

1.3

0.8

0.70.6

0.00

0.50

1.00

1.50

2007 2008 2009 2010 2011 1Q12

0.2

0.2

0.6

0.4

0.30.3

0.00

0.20

0.40

0.60

2007 2008 2009 2010 2011 1Q12

x

Net debt to EBITDA, Net debt to equity, and Interest

coverage ratio for 1Q12 all improved from YE2011.

The improvements were the direct result of the

strong operating results and cash collections,

providing the significant increase in Cash and cash

equivalents.

Interest Coverage

x

Net Debt to EBITDA

x

Net Debt to Equity

x

Interest expense related to the purchase of common shares of Bangkok Chain Hospital

PCL doing business as Kasemrad Hospital Group to calculate interest coverage ratio was

Baht 111 million based on remaining days after the transaction settled. Assuming this

interest expense was incurred for the full year, interest expense from this transaction

would be Baht 140 million and interest coverage ratio would be 12.9x

*


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Dividend Payment

0.450.400.400.400.40

0.40 0.40 0.45 0.50

0.65

0.00

0.20

0.40

0.60

0.80

1.00

2007 2008 2009 2010 2011

Final

Interim

Bt per share

49.0%50.0% 49.0% 49.8%52. 0% 50. 6%

0%

20%

40%

60%

80%

2006 2007* 2008 2009 2010 2011

Margin have been strong and relatively

stable, with recent improvement in

EBITDA margin0.80 0.800.90

0.85

* Net profit used to calculate the dividend payout ratio in 2007 is:

2007 net profit Baht 1,605 million

-share gain from GCS - Baht 829 million

-+ dividend received from GCS + Baht 418 million

= Net profit for dividend payment Baht 1,195 million

1.10

Dividend Payment

Payout Ratio


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Agenda

Overview

Strategy

Operational Update




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KH Acquisition Date: 23 March 2011

BH Invesment % : 24.99%

BH recognized share of KHs income in 1Q12, following the investment in March 2011, is set out in thetable below.

* The Company did not recognize the share of income of Baht 3.6 million from Kasemrad Hospital Group in

1Q11, as the acquisition occurred during the last few days of 1Q11.

Kasemrad Hospital Group (KH)

(Unit: Thousand Baht) 1Q12 1Q11

Share of income from KH 57,516 *

Depreciation for fixed assets revaluation (2,113) -

Share of income from KH -net 55,403 -

Consulting fee for KH loan - (2,231)

Finance cost related to KH(Bond debenture allocation 1Q12; KH loan 1Q11)

(40,975) (3,257)

Tax benefit from finance cost and consulting fee in

1Q11

9,424 1,646

Amortization of bond issuance cost (939) -

Net income/(loss) from KH 22,913 (3,842)

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20120522 BH InvestorPRESN