20150424 Bh Investor Presn

7/23/2019 20150424 Bh Investor Presn

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Bumrungrad Hospital Public CompanyLimited

InvestorPresentation

March 2015



PG.1



Disclaimer• The information contained in this presentation is for information purposes only and does not constitute an

oer or invitation to sell or

the solicitation of an oer or invitation to purchase or subscribe for any securities of Bumrungrad HospitalPublic Company Limited (the

"Company ") in any urisdiction nor should it or any part of it form the basis of! or be relied upon inconnection ith! any contract or

commitment hatsoever#

• This presentation is being communicated only to persons ho have professional e$perience in mattersrelating to investments and%or

to persons to hom it is laful to communicate it under the las of applicable urisdictions # &ther 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 forardlooingstatements# *ll forardlooing

statements are the Company's current e$pectation of future events and are subect to a number of factorsthat could cause actual

results to dier materially from those described in the forardlooing statements# Prospective investors

should tae care ith respect

to such statements and should not place undue reliance on any such forardlooing statements#

• This presentation has been prepared by the Company solely for the use at this presentation# The information

in this presentation hasnot been independently veri+ed# ,o representation! arranty! e$press 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# ,one

of the Company! any of

its a-liates or any of their respective agents! advisors or representatives! shall have any liability (innegligence or otherise) for any

loss or damage hosoever arising from any use of this presentation or its contents or otherise arising

in connection ith this

presentation# The information presented or contained in this presentation is current as of the date hereof



and is subect to change

ithout notice and its accuracy is not guaranteed# ,one of the Company! any of its a-liates or any of their

respective agents! advisors

or representatives! maes any undertaing to update any such information subse.uent to the date hereof#

• This presentation should not be construed as legal! ta$! investment or other advice# ,o part of this presentation shall be relied upon

directly or indirectly for any investment decisionmaing or for any other purposes# Prospective investorsshould undertae their on

assessment ith regard to any investment and should obtain independent advice on any such investment/ssuitability! inherent riss

and merits and any ta$! legal and accounting implications hich it may have for them#

• Certain data in this presentation ere obtained from various e$ternal data sources! and none of the

Company! any of its a-liates or

any of their respective agents! advisors or representatives have veri+ed such data ith independent sources#

*ccordingly! the Company

maes no representation as to the accuracy or completeness of those data! and such data involve rissand uncertainties and are

subect to change based on various factors#

PG.

2



Agenda

Overview

Strategy

Operational Update

Financial Perormance

!ssociated Companies

PG.



3



c"stomer service oriented patient care

Established in 1980; listed on SET in 1989

Bumrungrad International Hospitalo acilities

• One of the largest and mostsophisticated private

hospitals in South-East sia• !80 licensed inpatient beds and !"!00

outpatientvisit capacit# per da#

• Thailand$s leading tertiar# medicalcenter

• %ed &ross rated '&lass ( tertiar# carecenter; a

regional referral centero Accreditation

• 1st hospital in sia to receive )S *&+ccreditation" in ,00, %e-accredited b#

the *&+ in,00!" ,008" ,011 and ,01. *&+/

isease-Specific$&ertication" heart and stro2e programs

3since,0045; &hronic 6idne# isease and

iabetes7ellitus 3since ,0105

• 1st

private hospital in Thailand ith Thaiospital



ccreditation 319995o Patients

• Over 11 million patient episodesannuall#

• Over !00"000 international patientepisodes

annuall# from over ,00 countrieso

!er"ices• !! Sub-Specialties



#alue $ Pro%tability Comparison

E:bed 37<bed5 =,01.

2&&

1'&

1(&

1)&

12&

1&&

'&

(&

)&S6%

6>*

?OE

) ( ' 1& 12

*2&1) +BI,DA -argin

Source@ +<ES<loomberg" SET

Aote@ Thai hospital$s E<+T margins are unadBusted for doctor revenue

PG.



/0+ $ PB Comparison

3

3&

2

AT:

&7%

6>*

7-&+

+

?OE

2 3

Price to Boo

Source@ +<ES<loomberg" SET

PG.



(



,0P 1& /+GI04! H+AL,H CA/+ P/0#ID+/! B*-A/5+, #AL6+

C0-PA*C06,/*

IHH H+AL,HCA/+-ALA*!IA

/A-!A* H+AL,HCA/+A6!,/ALIA

BAG505 D6!I, -+DICAL !+/#IC+!,HAILAD

B6-/6G/AD H0!PI,AL,HAILAD

AP0LL0 H0!PI,AL!IDIA

P/I-A/* H+AL,H CA/+A6!,/ALIA

/AL+! -+DICAL G/06P!IGAP0/+

!IL0A- I,+/A,I0AL H0!PI,AL!ID0+!IA

5P7 H+A,LHCA/+-ALA*!IA

0/,I! H+AL,HCA/+IDIA

Sales are estimates for #ear ending ec C1; 7ar2et value as of ug 18

Sales for #ear ended *un C0 are estimated for %amsa#" nal for primar#

?inal sales for #ear ended 7ar C1



Source@ ?orbes

PG.

8



International #olumes2&&1 to 2&1)

.C1"9!. .,4"C98

C91"!!9C4!"C84

C00"000

,00"000

100"000

-

,00. ,00! ,004 ,00D



• 01234 Top 32 revenue contribution by 5esidency

and ,ationality

/esidency ationality

Thailand .D9 Thailand

C89

)E 88 7#anmar 8.

7#anmar 8! )E 48

Oman 4. Oman 44

&ambodia C! )S .8

<angladesh C, &ambodiaC,

7ongolia ,, <angladesh

C,

)S ,0 *apan ,4

Fatar ,0 )6 ,C

6uait 18 Fatar 18

!C



1F1. ,F1. CF1. .F1.

+nternational Thai

PG.

9



:;y Bumrungrad<

G Hocated in Thailand

G +nvested the Time

G +nvested into the

<rand

G +nvested into Training

G +nvested into

Technolog#

G +nvested into

?acilities

G +nvested into



>rocesses

PG.1

&



,;ailand4s uni=ue ad"antages

G Iood doctors

G Hoer cost labor

G Service culture

G +mage as value destination ith good tourism

infrastructure

G &onsumer-driven healthcare

G Self pa#" al2 in environment



PG.1

1



Doctors $ urses

• !! Sub-Specialties

• Over ,"000 nurses and professional staJ

• Over 1"C00 ph#sicians and dentists• +nternational eKperience staJ and

overseas board certication 3over C,0 are)S" )6 or ustralian <oard certied5

PG.1



2



International reputation

Inside -an

6The top destination hospitals are designed to

be models of e-ciency7

C;ina Daily

6 *ordable and high .uality medical care ishelping to

entice visitors to the *89*, region7

International Herald ,ribune

6:t/s better than anything :/ve seen; it/s a +vestar hospital#7

CB! (& -inutes

6:t/s the number one international hospital inthe "orld#7

,;e inancial ,imes

6They (Bumrungrad) said! <you can have(surgery) done

tomorro" if you "ant ./ Tomorro"= : have never

heard that



"ord in 9ngland in all my life#7

e>s>ee

6Bumrungrad :nternational Hospital in Bangois a magnet

for medical tourists#7

PG.13



In"ested in ,ec;nology ? Integrated!er"ices

Laboratory Automation!ystem@

Abbott ACC+L+/A,0/

a3(&&

Hospital>ide :ii recordaccess in e"ery room

!>isslog p;armacyrobot

1stop c;ecup center cas;ier



p;armacy on e"ery 0PD oor

!ingle patient record uni%edHI!



In"ested in ,ec;nology :ebsite

G :isual eKperience on eb@ pic2 #our doctor or

#our room

G +nformation about medical procedures or

specialt# centers

G &ost estimates

PG.1



Premium Inpatient acilities

&ustomer-oriented patient

service culture supported b#

hotel-li2e ambience in a

arm and restful

environment

PG.1

(



(



+Epansi"e 0utpatient acilities

Large scale outpatient Facilities allo> eEtensi"e "ariety oF ser"ices >it;pri"acy comFort and eciency

!yLobby

Ground loor Lobby

:elcome Center

P I i l / F l 0F%



Processes International /eFerral 0F%ces

26 offices in 17 countries outside Thailand

that arrange appointments and travel for BI

patients

G Australia G 5u>ait

G Ba;rain G Lao PD/

G Banglades; G -ongolia

G Cambodia 3 G -yanmar )

G C;ina 2 G 0man

G +t;iopia G /ussia 2

G Hong 5ong G 6A+ Dubai

G Indonesia 2 G #ietnam 2

G 5aJa;stan

PG.1

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'



Processes Healt; !creening Center

G 7anaged using &onstraint Theor#

G Entr# portal for medical travelers

G One-stop Loor for a complete

chec2-up

G verage ,00 per da#" D da#s a ee2

G !0 al2Min

G Onl# screening services M Ao

acute

services

G Ao variation in screening

services"

based on medical evidence



PG.1

9

A d



Agenda

Overview

Strategy

Operational Update



PG.2

&



• &ampus eKpansion

• octor recruitment in subspecialties• dvanced technolog#

• S2illed or2 force

• evelopment of the <umrungrad Aetor2• Heverage economies of scale in 2noledge

• Evolve )< Songdo into a regional hospital

• evelop a iagnostic &linic in 7#anmar

• %evie of selective opportunities ineKisting

referral mar2ets



PG.2

1



• Opened ! Loors in <umrungrad +nternational

&linic

• %enovate and eKpand clinics in <umrungrad

+nternational ospital

• dded 18 +&) beds and !8 ard beds in

<umrungrad+nternational ospital building

• %enovate and eKpand ancillar# services

• <ought 8",00 sN meters of land on >etchburi

%oad

• E+ approval received

• <ought 4"1D8 sN meters of land on Su2humvit

Soi 1 to initiall# develop a par2ing structure

• Irand opening of <umrungrad Toer on 4 7arch

,01!for emplo#ee houses and bac2 oce functions

• cNuired controlling interest in )< Songdo

hospital



hospital

*1 *1( *18 *1' ,otal

1"!98 C",C1 ."!!0 C9,

9"DD1

PG.2

2



E+ pproval as obtained for

the>etchburi &ampus on ,9

*anuar#

,01!

G >hase 1 of the Soi 1development

ill be a par2ing structure

G %enovate <% ith clinicalactivit#

on C Loors 3if alloed b# <7

and

7O>5 and replacing the 7E>

infrastructure



PG.2

3

Campus +Epansion BI Hospital Building



Campus +Epansion ? BI Hospital Building

• dded 18 +&) beds and !8 ardbedsin <umrungrad +nternational

ospitalbuilding



PG.2

)

Campus +Epansion ,;e ne> Li"er Center



Campus +Epansion ? ,;e ne> Li"er Center

• The ne Hiver &enter hasbeen opened on the third

Loor" <+ ospital <uilding

PG.2



,ec;nology ? IB- :atson



,ec;nology ? IB- :atson0ncology

• cognitive computing s#stem

developed

collaborativel# b# +<7 and 7emorialSloan 6ettering" one of the orld$sleading cancer center

• nal#Pes information from the

medical

literature" international treatmentguidelines and recogniPed orld

eKperts

• +ntegrates patient information into

the

anal#sis and ma2es individualiPed

treatment recommendation to



treatment recommendation toprovide

state of the art care ith the bestoutcome for <umrungrad patients

ithcancer

!illed :orForce



!illed :orForce

• uniNue /Simulation Training &enter$ <umrungrad is Thailand$srst private

hospital to use such an innovative training facilit# to improvepatient care

• currentl# eNuipped ith the latest version full bod# mani2in andinfant mani2in

hich can simulate more than 40 2e# situations including pulse"heart rate"

pulmonar# sound" seating" tearing" and purple nails

• The simulation center can accommodate registered nurses up to



g peight sessions

per da#

PG.2

8



• < entered into the onation forEducational

Support greement ith St Houis &ollegeto

donate 49 7< for eKpansion of nursetraining

program and facilities of St Houis &ollegehich

ill provide an addition 40 nurse studentsper #ear

• < ill offer scholarships andemplo#ment

program for those 40 nurse students

• This cooperation ill secure nursing staffs

for <

• Established a ne subsidiar# for

education and

training in clinical and healthcare service



• ?ocused on improving and eKpanding thegroup

of companies training capabilities

• >rovide training services to outside

parties

PG.2

'

Current !tatus ? Petc;buri ProKect



Current !tatus Petc;buri ProKect

• E+ pproval as obtainedfor

the >etchburi &ampus on,9

*anuar# ,01!

• The E+ pproval allos@

• 100 ?%@ 8",0. K 8 Q

4!"4C, m,

• 19, <onus ?% Q1,"401 m,

• 7aKimum ?% Q D8",CC

m,

• &onstruction rea is li2el#to be

around 8!"000 m,

• &onstruction eKpected to

start in

Aovember ,01!



PG.2

9

Current !tatus ? !oi 1 Paring Lot ProKect



Current !tatus !oi 1 Paring Lot ProKect

Hand ban2 Soi 1 ith phase 1development of a par2ingstructure

PG.3

&



Bumrungrad ,o>er



Bumrungrad ,o>er

• <umrungrad Toer on %ama +:road

• ,C-store# building in goodcondition

• Hand area C"C48 sNm

• Total building area of .0"4!0 sNmill

accommodate

- C00-.00 bac2 oce emplo#ees

- orm rooms for over 1"000

emplo#ee

• %enovation cost approK ,,0 7<• Irand opening of <umrungrad

Toer on4 7arch ,01! for emplo#ee houses

and

bac2 oce functions



PG.3

1

Agenda



Agenda

Overview

Strategy

Operational Update



PG.3

2



)t; uarter@ Outpatient volumes

advanced

1.9 in .F1. compared ith .F1C"ith

most of the increase due to volumes

contributed b# the )<S acNuisition"

and

strong groth in international

volumesEKcluding )<S" outpatient volumes

gre

CD in .F1.

2Q 3Q 4Q 4Q(inc. !" (inc. !" (inc. !" (e#c.!"

*,D Dec@ Outpatient volumesadvanced D!

in ,01. compared ith ,01C as aresult of

volumes added b# the )<S

acNuisition

EKcluding )<S volumes" outpatient

volumes

declined 1! in ,01.



(e#c. !"

PG.3

3

Admissions #olume ,rend



A"erage Admissions per Day

)t; uarter@ +npatient volumesadvanced

198 in .F1. compared ith .F1C"ith

most of the increase due to volumes

contributed b# the )<S acNuisition"and

strong groth in international

volumes

EKcluding )<S" inpatient volumes gre

D. in .F1.1Q

2014

*,D Dec@ +npatient volumes advanced11,

in ,01. compared ith ,01C as aresult of

volumes added b# the )<SacNuisition

EKcluding )<S volumes" inpatient

volume

gre 18 in ,01.



PG.3

)

A"erage Daily Census #olume ,rend



g y

A"erage Daily Census

)t; uarter@ & advanced 19D in

.F1.

compared ith .F1C" ith most ofthe

increase due to volumes contributed

b# the

)<S acNuisition" and strong

groth in international volumes EKcluding

)<S" &

gre CD in .F1.

2013 2014

*,D Dec@ & advanced 1,, in

,01.compared ith ,01C" ith most of

the

increase due to volumes contributed

b# the

)<S acNuisition EKcluding )<S" &

gre 0C in ,01.



370

(e#c. !"

2013 2014

PG.3

0PD /e"enue Intensity



/e"enue per #isit

5evenue per episode re>ects an increase

from the

3st ?an 1234 price adustment #

&P@ 5evenue intensity A

#th $"arter % & ' 'ec

:ncluding HH9 Consolidated 8 #2D E#FD

9$cluding HH9 Consolidated 8 1#3D 3#D2013 2014

/e"enue per #isit

13.2$

Bt

9,000

8,000

7,000

6,000

5,000

4,000

(inc. !"2012 2013 2014

PG.3

(



IPD /e"enue Intensity



/e"enue per Admission

5evenue per episode re>ects an

increase from the

3st ?an 1234 price adustment #

:P@ 5evenue intensity per admissionA

#th $"arter % & ''ec

:ncluding HH9 Consolidated 8 33#GD

#D

9$cluding HH9 Consolidated 8 2#GD

3#D

Bt

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

2012 2013 2014



• or 4I34A 5evenues by maret segmentinternational patients

accounted for G#1D of the total in 4I34! ith the

remainingG#ED from Thai patients! reflecting a decrease in

the GF#3D

from Thai patients in 4I3G! and the noted

improvement of the

international business#

• 1234 Top J revenue contribution by ,onThai

,ationalities

7#anmar 8

)E D

Oman D

#olume Contribution by ationality

100

80

40

.0

,0

0

CF1C .F1C 1F1. ,F1. CF1. .F1.

+nternational Thai



PG.3

'

/e"enue Breado>n



Inpatient vs. %utpatient ($ of revenue"

100

!, !, !,

.8 .8 .8

CF1C .F1C 1F1. ,F1. CF1. .F1.+npatient Outpatient

Y2014

4I34 5evenue grothA

R &utpatient revenue increased by 34#4D yoy

R :npatient revenue increased by 3G#FD yoy

8elfpay remains the primary method of payment

PG.3

9



Agenda



Overview

Strategy

Operational Update



PG.)

&



0perating PerFormance



2&1&2&1),otal /e"enues

12$ &')

14,042790

13,252

11,306

2011 2012*

* One-time revenue of THB 790 million in 2012 w! "in on !le of inve!tment in !u#!i$ir%&

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

Pro%t3,000

2,730

2,500

2,000

1,500

1,000

500

0

2010* 2011** 2012*** 2013 2014* One-time lo!! of THB 63 million in 2010 w! lo!! on t'e trn!ltion $(u!tment from t'e !le of )!i

enl +re )+ .rou/

** One-time /rofit of THB 33 million in 2011 w! t lo!! on !le of B+ THB 106 million off!et wit' lo!!

on !le of )H THB 24 million n$ lo!! on !'re re/ur'!e THB 50 million

*** One-time /rofit of THB 548 million in 2012 w! "in on !le of inve!tment H, net of t THB 567

million off!et wit' /itl "in t n$ t $vi!or% !ervie! on )H !le THB 14 million n$ ertin win$

$own n$ o/ertion o!t! of B THB 5 million&

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



-argins $ ,rend



+BI,DA -argin

,rend

28.8M

1. 1M

2&12N 2&13 2&1)EKcluding eKtraordinar#

items

Margins have (een growing over the last 5 years

PG.)

2



T< million

."400

."!00

.".00

."C00

.",00

."100

."000C"900C"800C"D00

• Cost of hospital operations (including @epreciation and

amortiKation) of Baht

F!4F million for 1234! or #JD more yearoveryear from BahtE!EG million in

123G! compared to the F#GD gro"th in 5evenues from hospitaloperations# The

percentage of Cost of hospital operations to 5evenues fromhospital operations

improved from 1#2D in 123G to 3#2D in 1234# *dministrative e$penses

(including @epreciation and amortiKation) ere Baht 1!E2

million in 1234!

increasing 33#2D from Baht 1!J1 million in 123G# This changeincluded Baht 4

million in additional repair and maintenance e$pense! Baht

F million in

donations to support nurse recruitment! Baht 4G million inin>ationary increases

in sta cost! Baht 1F million in @epreciation and amortiKationassociated "ith

the campus e$pansion and revised estimated useful lives of

certain assets! and

Baht 12 million more in soft"are support and maintenance#9B:T@* gre" 31#4D

yearoveryear from Baht 4 23 million in 123G to Baht 4 J3



yearoveryear from Baht 4!23 million in 123G to Baht 4!J3

million in 1234!

ith the 9B:T@* margin advancing to 1E#D in 1234 comparedith 1#D in

123G#

Le"erage



et Debt to +BI,DA

3.9

&.)

1).9

&.&&

2&1& 2&11 2&13 2&1)

2&1& 2&11

:nterest e$pense related to the purchase of common shares of BangoChain Hospital PCL

(doing business as "Masemrad Hospital Nroup") to calculate interestcoverage ratio as Baht

333 million based on remaining days after the transaction settled# *ssuming this interest

e$pense as incurred for the full year! interest e$pense from thistransaction ould be Baht

342 million and interest coverage ratio ill be 31#F$*fter adding bac the 1234 and 123G capitaliKed interest e$pense

related to the campuse$pansion#

*s a result of the increase in Cash and cash e.uivalents!

,et debt toe.uity improved to 2#2$ as at G3 @ecember 1234 from

2#1$ as at G3@ecember 123G#

*fter adding bac the 1234 and 123G capitaliKedinterest e$pense

related to the campus e$pansion of Baht JJ million

and Baht F

million! respectively! the Company/s :nterest coverageratio improved

to 3E#E$ in 1234 from 3#4$ in 123G! due to higher



9B:T@* in 1234compared to 123G#

,oteA ,et debt e$cludes +$ed deposits ith a maturity e$ceeding three months butnot more than one year hich are reported as 8hortterm investments of Baht3!F11 million in 1234 and Baht 1!3E million in 123G#

PG.)

)



The current dividend pa#out ratiohas

slightl# decreased from ,01C

0&88

*.4+

*.4*

2009

,a-out )atio

80

60

4./$

40

20

0

2009

PG.)



Agenda



Overview

Strategy

Operational Update



PG.)

(



In"estment in -ongolia



On ,8 7arch ,01." ealth oriPons Enterprises >te Htd 3'E(5" anoverseas

subsidiar# 80 oned b# the &ompan#" acNuired 100 of the common

shares of <umrungrad 7ongolia HH& 3'<7H(5" hich holds !1 of the common shares

of Seoul

Seniors Toer HH& 3'SST(5" for approKimatel# )S 1, million in cashdditionall#" E

provided a loan of )S CC million to SST" hich ons and operates)laanbaatar Songdo

ospital 3')<S(5 in 7ongolia

The seller of shares of SST is entitled to receive additional contingent

consideration in

the form of earn-out pa#ments" provided certain cumulative net prot targets

are achieved

through ecember C1" ,014" at the maKimum of 7AT 10"94!9 million" hich

has not #et

been recorded

E$s consolidated assets and liabilities" hich include SST and <7H

as of the

acNuisition date" are included in the &ompan#$s consolidated nancial

statements for 1F1.

E has recorded the net tangible assets of SST and <7H acNuired at their fair

values as of

the acNuisition date The remaining eKcess of the purchase price over the net



the acNuisition date The remaining eKcess of the purchase price over the net

value of the

tangible assets acNuired as allocated as goodill The preliminar# amountof goodill"

hich eKcludes an# impact from additional contingent consideration" isapproKimatel# )S

C! million

PG.)

8

6laanbaatar !ongdo Hospital 6B!D



Corporate !tructure

• <7H acNuired !1 of common shares of Seoul Seniors Toer HH&'SST(" ho ons

and operates )< Songdo on ,8 7arch ,01.

• )< Songdo currentl# has 98 beds" diagnostic imaging" and 40 doctorsin maBor

medical specialties both inpatient and outpatient care

• One of . hospitals and onl# private hospital in 7ongolia ith a

nationide general

hospital license



PG.)

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20150424 Bh Investor Presn

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