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Bumrungrad Hospital PCL
Investor Presentation August 2015
PG.2
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 investment’s 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.
PG.3
Agenda
Overview
Strategy
Operational Update
Financial Performance
Associated Companies
PG.4
Fact Sheet
Established in 1980; listed on SET in 1989
Bumrungrad International Hospital o Facilities
• One of the largest and most sophisticated private hospitals in South-East Asia
• 580 licensed inpatient beds and 5,500 outpatient visit capacity per day
• Thailand’s leading tertiary medical center • Red Cross rated “Class A” tertiary care center; a
regional referral center o Accreditation
• 1st hospital in Asia to receive US JCI Accreditation, in 2002. Re-accredited by the JCI in 2005, 2008, 2011 and 2014. JCI ‘Disease-Specific’ Certification, heart and stroke programs (since 2006); Chronic Kidney Disease and Diabetes Mellitus (since 2010)
• 1st private hospital in Thailand with Thai Hospital Accreditation (1999)
o Patients • Over 1.1 million patient episodes annually • Over 500,000 international patient episodes
annually from over 200 countries o Services
• 55 Sub-Specialties
BHPCL, an early mover in medical tourism, is an international leader in combining clinical quality with customer service oriented patient care
Bangkok Bank
Pcl., 0 .26% Sinsuptawee A M,
8.49%Bangkok
Insurance Pcl.,
14 .62%
T hai NVDR, 5 .04%
Bangkok Dusit
Medical Services
Pcl., 23.95%
UOB Kay Hian
(HK) - Client
A ccount, 8 .33%
Others, 39.63%
Shareholding Structure
As of 30 June 2015
Including preferred stocks
PG.5
BH
BDMS
BCH
SVH
RAM VIBHA
CMR
M-CHAI
SKR NTV
TNH
CHG
IHH
KPJ
RAFG
APLH FOHE
SILO
0
25
50
75
100
125
150
175
200
225
250
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32
Value & Profitability Comparison
Source: IBES/Bloomberg, SET
Note: Thai hospital’s EBITDA margins are unadjusted for doctor revenue
EV/bed (MB/bed) 2Q15
2Q15 EBITDA Margin
PG.6
BH
BDMS
BCH
SVH
RAM
VIBHA
CMR
M-CHAI
SKR
NTV
TNH CHG
IHHH
KPJH
RAF-G
APLH FOHE
SILO
-5
0
5
10
15
20
25
30
35
0 1 2 3 4 5 6 7 8 9 10 11 12 13
ROE & P/B Comparison
Source: IBES/Bloomberg, SET
Price to Book
2Q
15
RO
E
PG.7
TOP 10 REGION’S HEALTH CARE PROVIDERS BY MARKET VALUE
Source: Forbes
COMPANY/COUNTRY
IHH HEALTHCARE/MALAYSIA 2,440 12.6
RAMSAY HEALTHCARE/AUSTRALIA 4,490 1 9.3
BANGKOK DUSIT MEDICAL SERVICES/THAILAND 1,760 8.8
BUMRUNGRAD HOSPITAL/THAILAND 490 3.0
APOLLO HOSPITALS/INDIA 860 2 2.6
PRIMARY HEALTH CARE/AUSTRALIA 1,400 1 2.2
RAFFLES MEDICAL GROUP/SINGAPORE 300 1.8
SILOAM INTERNATIONAL HOSPITALS/INDONESIA 290 1.5
KPJ HEATLHCARE/MALAYSIA 820 1.1
FORTIS HEALTHCARE/INDIA 740 2 0.9
ANNUAL SALES
($MIL)
MARKET VALUE
($BIL)
Sales are estimates for year ending Dec. 31; Market value as of Aug 18. 1Sales for year ended Jun 30 are estimated for Ramsay, final for primary. 2Final sales for year ended Mar 31.
PG.8
Bumrungrad’s International Volumes 2001 to 2014
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
225,206
273,651
303,876
365,386 391,559
431,954 426,398 415,810 406,543 423,793
466,225
522,414 526,394
619,528
Pat
ien
t V
olu
me
s, V
isit
s +
Ad
mis
sio
ns
PG.9
Volume Contribution by Nationality
Revenue Contribution by Nationality
Revenue Diversification
62% 60% 63% 65% 66%
38% 40% 37% 35% 34%
0%
20%
40%
60%
80%
100%
2Q14 3Q14 4Q14 1Q15 2Q15
International Thai
52% 52% 53% 54% 54%
48% 48% 47% 46% 46%
0%
20%
40%
60%
80%
100%
2Q14 3Q14 4Q14 1Q15 2Q15
International Thai
• 1H15 Top 10 revenue contribution by Residency and Nationality
Nationality
Thailand 34.3%
Myanmar 8.6%
UAE 7.8%
Oman 6.5%
USA 5.2%
Cambodia 3.5%
Bangladesh 3.2%
Qatar 2.4%
Kuwait 2.4%
UK 2.3%
Residency
Thailand 44.2%
UAE 10.8%
Myanmar 8.6%
Oman 6.6%
Cambodia 3.9%
Bangladesh 3.2%
Qatar 2.7%
Kuwait 2.5%
UAS 2.1%
Ethiopia 1.4%
PG.10
Why Bumrungrad?
Located in Thailand
Invested the Time
Invested into the Brand
Invested into Training
Invested into Technology
Invested into Facilities
Invested into Processes
PG.11
Thailand’s unique advantages
Good doctors
Lower cost labor
Service culture
Image as value destination with good tourism infrastructure
Consumer-driven healthcare
Self pay, walk in environment
PG.12
Doctors & Nurses
• 55 Sub-Specialties
• Over 2,000 nurses and professional staff
• Over 1,300 physicians and dentists
• International experience staff and overseas board certification (over 320 are US, UK or Australian Board certified)
PG.13
International reputation
Inside Man
“The top destination hospitals are designed to be models of
efficiency”
China Daily
“Affordable and high quality medical care is helping to
entice visitors to the ASEAN region”
International Herald Tribune
“It’s better than anything I’ve seen; it’s a five star hospital.”
CBS 60 Minutes
“It’s the number one international hospital in the world.”
The Financial Times
“They (Bumrungrad) said, ‘you can have (surgery) done
tomorrow if you want.’ Tomorrow! I have never heard that
word in England in all my life.”
Newsweek
“Bumrungrad International Hospital in Bangkok is a magnet
for medical tourists.”
PG.14
PACS
Swisslog pharmacy robot
Invested in Technology – Integrated Services
Single patient record, unified HIS
Hospital-wide Wi-Fi, record access in every room
1-stop checkup center; cashier, pharmacy on every OPD floor
Laboratory Automation System: Abbott ACCELERATOR a3600
PG.15
Invested in Technology - Website
Visual experience on web: pick your doctor or your room
Information about medical procedures or specialty centers
Cost estimates
PG.16
Premium Inpatient Facilities
Customer-oriented patient service culture supported by hotel-like ambience in a warm and restful environment
PG.17
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
PG.18
Processes - International Referral Offices
Australia
Bahrain
Bangladesh
Cambodia (3)
China (3)
Ethiopia
Hong Kong
Indonesia (4)
Kazakhstan
Kuwait
Lao PDR
Mongolia
Myanmar (5)
Oman
Russia (2)
Sudan
UAE (Dubai)
Vietnam (2)
32 offices in 18 countries outside Thailand that
arrange appointments and travel for BI patients (as of August 2015)
PG.19
Processes - Health Screening Center
Managed using Constraint Theory
Entry portal for medical travelers
One-stop floor for a complete
check-up
Average 200 per day, 7 days a week
50% walk–in
Only screening services – No acute
services
No variation in screening services,
based on medical evidence
PG.20
Overview
Strategy
Operational Update
Financial Performance
Associated Companies
Agenda
PG.21
Strategy
• Campus expansion
• Doctor recruitment in subspecialties
• Advanced technology
• Skilled work force
Bumrungrad International
Hospital
• Development of the Bumrungrad Network • Leverage economies of scale in knowledge
Thailand
• Evolve UB Songdo into a regional hospital
• Develop a diagnostic clinic in Myanmar
• Review of selective opportunities in existing referral markets
International
PG.22
Strategy (Detail)
• Opened 5 floors in Bumrungrad International Clinic Clinics
• Added 18 ICU beds and 58 ward beds in Bumrungrad International Hospital building
• Renovate and expand ancillary services Inpatient
• Petchburi Road’s EIA approval allows a Maximum FAR of 78,233 m2
• Construction expected to start in Q1 2016 2nd Campus
• Bought 6,172 sq. meters of land on Sukhumvit Soi 1
• Evaluate development options for Soi 1
• Grand opening of Bumrungrad Residential and Office Building on 6 March 2015 for employee housing and administrative offices
Acquire Additional Capacity
• Evolve UB Songdo into a regional hospital International
Estimated Capital Investment (Million THB)
Y15 Y16 Y17 Y18 Total
1,987 3,815 5,111 487 11,400
PG.23
Campus Expansion – BI Hospital Building
• Added 18 ICU beds and 58 ward beds in Bumrungrad International Hospital building
PG.24
Technology – IBM Watson Oncology
• A cognitive computing system developed collaboratively by IBM and Memorial Sloan Kettering, one of the world’s leading cancer center
• Analyzes information from the medical literature, international treatment guidelines and recognized world experts
• Integrates patient information into the analysis and makes individualized treatment recommendation to provide state of the art care with the best outcome for Bumrungrad patients with cancer.
For more information on IBM Watson, visit
www.ibmwatson.com
IBM Watson Oncology Built with Memorial Sloan Kettering
PG.25
Bumrungrad Personnel Development and
Training Center Co., Ltd.
Simulation Training Center
Skilled Workforce
Bumrungrad is Thailand’s first private hospital to use such an innovative training facility to improve patient care.
PG.26
Master Plan Update
EIA Approval was obtained for
the Petchburi Campus on 29
January 2015.
Soi 1 development is being
evaluated
Renovate BHR with clinical
activity on 6 floors (if allowed by
BMA and MOPH) and replacing
the MEP infrastructure.
Completed renovation of the
BRO Building
PG.27
Current Status – Petchburi Project
EIA Approval allows a Maximum FAR of 78,233 m2
PG.28
Main Lobby
Current Status – Petchburi Project
Construction expected to start in Q1 2016
PG.29
Soi 1 Outpatient Facility
PG.30
Soi 1 Outpatient Facility
PG.31
Soi 1 Outpatient Facility
The total site is 6,172 m2
In order to maximize the allowed building area, the site will be divided in 3 zones.
Maximum total building area is expected to be 25,000 m2.
Development options are being evaluated.
PG.32
BRO Building – renovation completed
Administrative Offices Employee Housing
PG.33
Overview
Strategy
Operational Update
Financial Performance
Associated Companies
Agenda
PG.34
3,022 3,038 2,958 3,348 3,424 3,397
2,820
3,348 3,325 3,264
0
1,000
2,000
3,000
4,000
2Q 3Q 4Q 1Q 2Q
2013 2014 2015
Overall Volume Trend
Visits
Average Visits per Day
2.5%
80 89 83 91
101 99
84 91
99 93
0
20
40
60
80
100
120
2Q 3Q 4Q 1Q 2Q
2013 2014 2015
Admissions
Average Admissions per Day
ADC
Average Daily Census
356
374 368
406
438 440
374
406
457 465
300
320
340
360
380
400
420
440
460
480
2Q 3Q 4Q 1Q 2Q
2013 2014 2015
10.8%
13.1% 14.1%
12.7%
13.7% 17.3%
Inpatient volumes advanced 14.4% in terms of patient days and 2.2% in terms of admissions in 2Q15 compared with 2Q14. This resulted mostly from a higher average length of stay for both non-Thai and Thai patients, along with strong international admission growth of 9.3%. Outpatient volumes declined 2.5% in 2Q15 compared with 2Q14, mostly due to a 6.1% decrease in Thai volumes, offset by non-Thai volume growth. Revenue intensity rose 7.1% and 11.2% for outpatient and inpatient services, respectively. The combined results of the above resulted in outpatient service revenues advancing 11.3% while inpatient service revenues grew 19.1%. The revenue contribution from inpatient services in 2Q15 was 49.9% and from outpatient services was 50.1%, compared with 48.2% and 51.8%, respectively, for 2Q14.
14.9% 17.9%
19.8% 18.1% 19.7% 22.2% 2.2% 14.4%
PG.35
7,411 7,459
7,652
6,982 7,254 7,624
7,531 6,982
7,976 7,967
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2Q 3Q 4Q 1Q 2Q
2013 2014 2015
246,372
234,988 251,356 238,899
231,289 238,959
263,996
238,899 261,444
278,362
0
50,000
100,000
150,000
200,000
250,000
300,000
2Q 3Q 4Q 1Q 2Q
2012 2013 2014
Revenue per episode reflects an increase from the 1st Jan 2015 price adjustment. Revenue intensity : 2nd Quarter OPD revenue intensity 7.1% IPD revenue intensity per admission 11.2%
Revenue Intensity
Bt
Revenue per Visit
Bt
Revenue per Admission
3.0%
2.8%
1.6%
5.8% 0.4% 5.9%
4.9% 1.0%
14.1%
16.5%
PG.36
Volume Contribution by Nationality
Revenue Contribution by Nationality
International Breakdown
• For 2Q15: Revenues by market segment, non-Thai patients
accounted for 65.9% of the total in 2Q15, with the remaining
34.1% from Thai patients, compared to 61.9% and 38.1% for
non-Thai patients and Thai patients, respectively, in 2Q14. The
change from the prior year was mostly due to the strong growth
in non-Thai business in 2Q15.
• YTD Jun15 Top 5 revenue contribution by Non-Thai Nationalities
Myanmar 9%
UAE 8%
Oman 7%
USA 5%
Cambodia 4%
62% 60% 63% 65% 66%
38% 40% 37% 35% 34%
0%
20%
40%
60%
80%
100%
2Q14 3Q14 4Q14 1Q15 2Q15
International Thai
52% 52% 53% 54% 54%
48% 48% 47% 46% 46%
0%
20%
40%
60%
80%
100%
2Q14 3Q14 4Q14 1Q15 2Q15
International Thai
PG.37
Revenue Breakdown
Inpatient vs. Outpatient (% of revenue) Method of Payment (% of revenue)
YTD Jun15
• 2Q15 Revenue growth:
Outpatient revenue increased by 11.3% y-o-y
Inpatient revenue increased by 19.1% y-o-y
• Self-pay remains the primary method of payment
48% 48% 48% 49% 50%
52% 52% 52% 51% 50%
0%
20%
40%
60%
80%
100%
2Q14 3Q14 4Q14 1Q15 2Q15
Inpatient Outpatient
Corporate Contracts - Domestic
8%
Corporate Contracts -
Intl 10%
Self-pay 69%
Insurance 13%
PG.38
Agenda
Overview
Strategy
Operational Update
Financial Performance
Associated Companies
PG.39
Operating Performance 2010-2014 Total Revenues
Profit
EBITDA
2,4502,819
3,326
4,016
4,516
0
1,000
2,000
3,000
4,000
5,000
2010 2011 2012 2013 2014
EB
ITD
A (
TH
B m
m)
16.5% CAGR
790
15,911
14,65113,25211,306
10,056
0
3,000
6,000
9,000
12,000
15,000
18,000
2010 2011 2012* 2013 2014
To
tal R
even
ues (
TH
B m
m)
12% CAGR
63
33
548
1,5551,258
2,010
2,5212,730
0
500
1,000
1,500
2,000
2,500
3,000
2010* 2011** 2012*** 2013 2014
Pro
fit
(TH
B m
m)
20% CAGR
DILUTED EPS
1.451.79
2.32
2.91
3.15
0.07
0.04
0.63
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2010 2011 2012 2013 2014
Dilu
ted
EP
S (
TH
B)
20% CAGR
* 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
*** One-time profit of THB 548 million in 2012 was gain on sale of investment (KH), net of tax THB 567
million offset with capital gain tax and tax advisory services on AHI sale THB 14 million and certain wind
down and operation costs of BIL THB 5 million.
1,321
2.95
1.83
1,588
2,558
1.52
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.
14,042
* One-time revenue of THB 790 million in 2012 was gain on sale of investment in subsidiary.
PG.40
Margins & Trend
Margins have been growing over the last 5 years
Net Profit Margin Trend
17.2% 17.2%15.1%
13.7%13.1%
0%
10%
20%
30%
2010* 2011* 2012* 2013 2014
EBITDA Margin Trend
28.6%27.7%
25.3%24.4% 25.0%
15%
20%
25%
30%
35%
2010 2011 2012 2013 2014*Excluding extraordinary items
PG.41
1H15 Update
2,103 2,784
28.2%
31.5%
0%
10%
20%
30%
40%
0
500
1,000
1,500
2,000
2,500
3,000
1H14 1H15
EBITDA EBITDA Margin
Total Revenues EBITDA
Net Profit
THB million THB million 32.4%
THB million
• Cost of hospital operations (including Depreciation and amortization) was Baht 5,106 million for 1H15, or 13.9% more year-over-year from Baht 4,484 million in 1H14. This represents a favorable change when compared to the 18.9% growth in Revenues from hospital operations. The percentage of cost to Revenues from hospital operations improved from 61.0% in 1H14 to 58.4% in 1H15. Administrative expenses (including Depreciation and amortization) were Baht 1,462 million in 1H15, increasing 6.9% from Baht 1,368 million in 1H14. This change included Baht 51 million increases in staff costs, largely associated with volume growth and annual merit increases; Baht 33 million more in software support and maintenance expenses related to the IBM Watson project; Baht 18 million more in bad debt expense, mostly from the prior year reversal of a large bad debt account; Baht 8 million in credit card commission; and Baht 6 million additional marketing related expenses due to timing differences of expenditures between periods, offset by a Baht 32 million reduction in donations to support nurse recruitment. EBITDA grew 32.4% year-over-year from Baht 2,103 million in 1H14 to Baht 2,784 million in 1H15, with the EBITDA margin advancing to 31.5% in 1H15 compared with 28.2% in 1H14.
• Net profit for 1H15 surged 43.1% to Baht 1,823 million from Baht 1,274 million in 1H14, with Net profit margin at 20.4 % in 1H15 compared to 16.9% in 1H14. Diluted EPS increased at the same rate to Baht 2.10 in 1H15 from Baht 1.47 in 1H14.
7,533 8,918
0
3,000
6,000
9,000
12,000
18.4%
1H14 1H15
1,274
1,823
16.9%20.4%
0%
10%
20%
30%
40%
0
500
1,000
1,500
2,000
1H14 1H15
Net Profit Net Profit Margin
43.1%
PG.42
Leverage x Interest Coverage
x
Net Debt to EBITDA
x
Net Debt to Equity
x
0.6
(0.1)
0.2
0.0
(0.0)
(0.25)
0.00
0.25
0.50
0.75
20112012
2013 2014YTD
Jun15
1.3
(0.3)
0.5
0.1
(0.0)
(0.50)
0.00
0.50
1.00
1.50
2011
2012
2013 2014YTD
Jun15
14.9 13.8 16.4 18.8
23.3
0
10
20
30
40
2011 2012 2013 2014 YTD Jun15
Note: Net debt excludes fixed deposits with a maturity exceeding three months but not more than one year which are reported as Short-term investments of Baht 1,872 million in YTD Jun15, Baht 1,922 million in 2014 and Baht 2,718 million in 2013.
*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 will be 12.9x **After adding back the YTD Jun15, 2014 and 2013 capitalized interest expense related to the campus expansion.
• Net debt to equity was 0.0x as at 30 June 2015 and 31 December 2014, as total debt as at 30 June 2015 remained lower than Cash and cash equivalents, leading to a net cash balance.
• The Company’s Interest coverage ratio improved to 23.3x in YTD Jun15 from 17.5x in YTD Jun14, due to higher EBITDA in YTD Jun15 compared to YTD Jun14. Interest expense has been reduced by Baht 27 million in both YTD Jun15 and YTD Jun14 for capitalized interest associated with the campus expansion project.
* ** **
**
PG.43
Dividend Payment
0.40 0.40 0.45 0.60 0.70 0.70
0.45 0.50 0.65
1.20 1.20 1.25
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2009 2010 2011 2012 2013 2014
Final
Interim
1.95 Bt per share
52.0%49.8%
50.6% 49.3%55.0% 52.0%
0%
20%
40%
60%
80%
2009 2010 2011 2012 2013 2014
The current dividend payout ratio remains at 50% of Net Profit.
0.88
1.10 0.90
1.80
Dividend Payment
Payout Ratio
1.90
PG.44
Agenda
Overview
Strategy
Operational Update
Financial Performance
Associated Companies
PG.45
Investment in Mongolia On 28 March 2014, Health Horizons Enterprises Pte. Ltd. (“HHE”), an overseas
subsidiary 80% owned by the Company, acquired 100% of the common shares of Bumrungrad Mongolia LLC (“BML”), which holds 51% of the common shares of Seoul Seniors Tower LLC (“SST”), for approximately USD 12 million in cash. Additionally, HHE provided a loan of USD 3.3 million to SST, which owns and operates Ulaanbaatar Songdo Hospital (“UBSD”) in Mongolia.
The seller of shares of SST is entitled to receive additional contingent consideration in
the form of earn-out payments, provided certain cumulative net profit targets are achieved through December 31, 2016, at the maximum of MNT 10,965.9 million, which has not yet been recorded.
HHE’s consolidated assets and liabilities, which include SST and BML as of the
acquisition date, are included in the Company’s consolidated financial statements for 1Q14. HHE has recorded the net tangible assets of SST and BML acquired at their fair values as of the acquisition date. The remaining excess of the purchase price over the net value of the tangible assets acquired was allocated as goodwill. The preliminary amount of goodwill, which excludes any impact from additional contingent consideration, is approximately USD 3.5 million.
PG.46
Surgery Staff in New OR
Hospital Building
Acquisition structure
• UB Songdo currently has 98 beds, diagnostic imaging, and 60 doctors in major medical specialties both inpatient and outpatient care
• One of 4 hospitals and only private hospital in Mongolia with a nationwide general hospital license
Ulaanbaatar Songdo Hospital (UBSD)