1Q 2019 Result
Transcript of 1Q 2019 Result
Rajthanee Hospital Public Company Limited
Investor Presentation : June 2019
1Q 2019 Result
2
Agenda
1. Summary and Updates
2. Business Overview
3. Financial Performance
4. Strategies & Future Projects
4
6
13
25
3
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 share in Rajthanee Hospital Public Company Limited (“RJH” and shares in RJH, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.
This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which RJH operates and general achievement of RJH business forecasts, which will cause the actual results, performance or achievements of RJH to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation.
This presentation has been prepared by RJH. 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 RJH or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.
This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes.
This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.
Summary and Updates 01
5
Company Profile
Our History Rajthanee Hospital Public Company Limited (“RJH”) was established in 1990 and commenced its operations in 1992 under the management of experienced physicians. Most of which graduated from Siriraj Medical School and are currently major shareholders of RJH.
Business Overview 2 private general hospitals, namely Rajthanee Hospital and Rajthanee Rojana Hospital (“RRH”), located in Phra Nakhon Si Ayutthaya District and Bang Pa-In District, respectively, as part of Ayutthaya Province
Target Customers • Mid-to-low income patients and social security patients • Non-Social Security revenue : Social Security revenue proportions are 57 : 43 and 56:44 in 2018
and 1Q’ 2019
Capacity 353 registered hospital beds, 250 beds in service , 67 OPD units and 47 Hemodialysis units
Excellent Medical Centers • Emergency and Neurosurgery Center • Heart Center • Minimal Invasive Surgery (MIS) • Orthopedics Center • MRI Center
Financial Performances Total revenue from hospital operations • 2016–2018 : THB 1,209.5 MB., 1,403.1 MB. and 1,587.4 MB. respectively +15.7% CAGR • 1Q’ 2019 : THB 445.9 M, +16.4% growth yoy.
Future Projects • New Hemodialysis Center • Bed service expansion • Renovation and expansion of OPD examination • New hospital building
Business Overview 02
7
Business Characteristics
Rajthanee Hospital (RJH)
Rajthanee Hospital Public Company Limited
Registered hospital beds 253 beds
Beds in service 212 beds
OPD units
Hemodialysis units
57 rooms
27 beds
Number of the insured persons 160,574
Quota of the insured persons 161,000
Full-time / Part-time physicians 45 / 190
Nurses 176
Rajthanee Rojana Hospital (RRH)
Rajthanee Rojana Hospital Company Limited
Registered hospital beds 100 beds
Beds in service 38 beds
OPD units
Hemodialysis units
10 rooms
20 beds
Number of the insured persons 26,038
Quota of the insured persons 35,000
Full-time / Part-time physicians 8 / 33
Nurses 28
As of Mar. 31, 2018
7
8
No.1 Hospital in Ayutthaya
No. Hospitals Gov’t/ Private
Locations Social
Security Scheme
No. of Registered
Beds
1 Phra Nakorn Sri Ayutthaya Gov’t Phra Nakhon Si Ayutthaya
District 528
2 Sena Hospital Gov’t Sena District 180
3 Karunvej Ayutthaya Hospital Private Bang Pa-in District 105
4 Supamitrsena General Hospital Private Sena District - 100
5 Peravech Hospital Private Phra Nakhon Si Ayutthaya
District - 53
Ayutthaya Province: • Large population and economy with increasing healthcare
spending • Locations of major industrial estates and industrial parks:
3 industrial estates: Ban Wa (Hi-Tech) Industrial Estate, Bang Pa-in Industrial Estate and Saha Rattana Nakorn Industrial Estate 2 industrial parks: Rojana Industrial Park and Factory Land Wangnoi Industrial Park
RJH as the leading private hospital group in Ayutthaya: • The first and biggest private hospital in Ayutthaya and nearby
provinces celebrating 27 years of business • Capture 50% market share of Ayutthaya’s Social Security
insurers • Reputable medical staff and medical services of good quality
and standard
1
2
3
4
5
Rajthanee Hospital
Rajthanee Rojana Hospital
9
4.349
0.914 0.845 0.532 0.490 0.468 0.413 0.369 0.326 0.303
Bangkok Samut Prakan
Chon Buri Pathum Thani
Samut Sakhon
Rayong Nonthaburi Ayutthaya Chiang Mai Nakhon Ratchasima
153,810
24,892 23,962 16,994 11,236 9,413
18,184 6,433
16,599 9,272
Social Security Sector’s Outlook
Number of Insured Persons (Sector 33 & 39)
Source: Social Security Office ; data as of May 31, 2019
• Contributing 2.81% of the nationwide number (13 million)
• Ranked 8th out of 77 provinces
Number of Employers
10
Ayutthaya’s Healthcare Industry Outlook
Source: Social Security Office ; data as of May 31, 2019
351,641 353,862 353,147 362,798 379,287 369,210
38% 41% 43% 45%
46% 51%
2014 2015 2016 2017 2018 May-19
Insured Persons (S 33 + S 39) RJH's Insured Persons RJH Market Share %
11
Ayutthaya’s Healthcare Industry Outlook
5,679 5,745 5,817 6,012 6,375 6,433
1.94% 1.16% 1.25%
3.35%
6.04%
0.91%
2014 2015 2016 2017 2018 May-19
No. of Employers Growth
Source: Social Security Office ; data as of May 31, 2019
12
Revenue Structure
Fixed Capitation Payment Statistics-based Payment
Base Payment (Fixed) 1,500 THB / Head / Year
Customer Complaints : 60 THB / Head / Year
Subject to Nationwide Budget
OPD IPD
12,800 THB / RW
AdjRW > 2
OPD only 26 Chronic Diseases
Per Special Medical Services
1 2 3
Revenue Structure under Social Security Scheme
Discharge Type: 60 THB / Head / Year
03 Financial Performance
14
28%
28%
44% 1Q 2019
THB 446 million
28%
29%
43%
OPD
IPD
SS
Revenue Breakdown By Patient Type
1Q 2018 THB 383 million
15
687 773 911
218 212 260 221 248
522 630
676
165 171 167 173 198
1,209
1,403
1,587
383 383 427 394 446
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
Non SS Revenue Social Security Revenue
Gross Profit
Group Performance
Revenue from Hospital Operations (THB Million)
+ 15.7% CAGR
333
417
485
126 109 133 118
160 27.5%
29.7% 30.6% 32.8%
28.4% 31.2% 29.9%
36.0%
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
Gross Profit % Gross Profit Margin
+16.4% (y-o-y) + 13.2% (q-o-q)
16
Revenue from OPD Non SS Patients (THB Million)
Number of Visits /1 and Revenue per Visit
OPD - Non SS Patients
/1 Not include visits among the group
381 420
472
108 113 130 121 124
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
+10.3% CAGR
+15.5% (y-o-y) + 2.9% (q-o-q)
262.0 272.7 300.2
72.6 71.8 80.7 75.1 76.8
1,454
1,540 1,571
1,482
1,575 1,614 1,608 1,617
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
Non-SS OPD visits ('000 visits) Revenue per Visit (THB/Visit)
17
OPD Utilization Rate – All Sectors
OPD Capacity (Units) & Utilization Rate (%) /1
/1 Include visits among the group
63 63 65 64 64 64 67 67
43 44 47 47 47 47 47 47
106 107 112 111 111 111 114 114
72.0%
80.4% 81.6% 81.8% 80.7%
87.0%
77.4% 80.9%
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
OPD units Hemo Units % Utilization
18
Revenue from IPD Non SS Patients (MB)
Number of Visits /1 and Revenue per Visit
IPD – Non SS Patients
306
353
439
111 99 130
100 124
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
+22.1% CAGR
+12.2% (y-o-y) +24.2% (q-o-q)
/1 Not include visits among the group
10.4 11.3
13.4
3.7 2.9 3.9
2.9 3.5
29,451 31,297
32,805 29,773
34,021 33,525 34,516 35,270
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
Non-SS IPD Visit ('000 visits) Revenue per Visit (THB/Visit)
19
IPD Utilization Rate – All Sectors
IPD Capacity (Beds) & Utilization Rate (%) /1
/1 Include visits among the group
183 208
234 227 227 239 244 250
81.3% 77.8% 79.5%
82.3% 77.8%
88.0%
70.0%
78.3%
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
iPD beds % Utilization
20
Average Insured Persons (‘000 persons)
Revenue per Average Insured Persons (THB/Head)
Social Security Scheme
142.5 152.1 156.4 154.5 154.9 156.5 159.7 160.7
9.9 11.3
19.0 15.7 18.5 20.1 21.6 24.3 152.3 163.4
175.4 170.2 173.5 176.5 181.3 184.9
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
RJH RRH
968 988
946 956
1,068
1Q18 2Q18 3Q18 4Q18 1Q19
3,428
3,857 3,856
2016 2017 2018
50% market share
21
Revenue from SS Patients (THB Million)
Social Security Scheme
522
630
676
165 171 167 173 198
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
+16.4% CAGR
+19.9% (y-o-y) +14.0% (q-o-q)
- Adj RW + Adj RW + Discharge &
complaints + Chronic cases
22
EBITDA (THB Million) & EBITDA Margin (%)
EBITDA
• 2Q’18 RJH group adjusted upward SG&A stemming from the discount of Adj RW payment rate of 4Q’17 for the amount of THB 10.7 million.
270 341
393
96 87 112 98 140
(11) (11)
22.3% 24.3% 24.7% 25.1%
22.6%
26.2% 24.8%
31.5%
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
EBITDA (excl. extra items) Extra Income / (Expense) % EBITDA Margin
23
Net Profit (THB Million) & Net Profit Margin (%)
Net Profit
• 2Q’18 RJH group adjusted upward SG&A stemming from the discount of Adj RW payment rate of 4Q’17 for the amount of THB 10.7 million.
• 1Q’ 19 RJH has sold vacant land yielding profit THB 98.7 million before tax or THB 79.0 million after tax
155
231 265
66 54 75 71 97
(11) (11)
79
12.8%
16.5% 16.7% 17.2%
14.2%
17.5% 17.9%
21.8%
2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19
Net Profit (excl. extra items) Extra Income / (Expense) % Net Profit Margin
24
Capital Structure
0% 5%
4%
6%
85%
31 March 2018
ST Loans
Accounts payable
LT Loans
Others Liabilities
Equity
2% 6%
4%
7%
80%
31 March 2019
04 Strategies & Future Projects
26
Strategies and Future Projects
Segments Strategies
Total Revenue • Targeted total revenue growth of 10-15% yoy.
• Add more center of excellence to minimize referral cases
OPD • RJH’s new Hemodialysis of 16 units to be open by July 2019
• Added 2 new OPD units at RJH and 1 unit at RRH by June 2019
• Focus more on tourist patients : Cambodia
IPD • Adding about 29 beds at RJH and 6 beds at RRH by June 2019.
• Adding 2-3 operation rooms at RJH.
• Increase ICU units.
• Increase Cathlab referral case from nearby provinces. Expected 200-250 cases in 2019
• Focus on Minimal invasive surgery (MIS).
Social Security • Increase social security insured persons at RRH
• More effective follow-up of chronic cases
• Expansion of chronic case clinic
• Boost more Adj RW and equipment income from cathlab and MIS
For further information & enquiries, please contact our investor relations at: Manassa Lertdumrongluck Investor Relations Tel: (+66) 65-931-0499 Email: [email protected] Website: http://www.rajthanee.com/investor-relation.html
Rajthanee Hospital Public Company Limited 111 Moo 3, Khlong Suan Phlu Sub-district, Phra Nakhon Si Ayutthaya District, Phra Nakhon Si Ayutthaya Province, Thailand 13000 Tel: (+66) 3533-5555-71
Thank You
Q&A