Indonesia's Largest, Fastest Growing, World Class Hospital Group ...

Indonesia’s Largest, Fastest Growing,World Class Hospital Group

Q1 2014

PT Siloam International Hospitals Tbk

Disclaimer

This presentation has been prepared by PT Siloam International Hospitals, Tbk (SILO ) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of SILO. No warranty ( expressed or implied ) is made to the accuracy or completeness of the information. All opinions and estimations included in this report constitute our judgment as of this date and are subject to change without prior notice. SILO disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this presentation and neither SILO nor any of its affiliated companies and their respective employees and agents accept liability for any errors, omission, negligent or otherwise, in this presentation and any inaccuracy herein or omission here from which might otherwise arise.

Forward – Looking Statements The information communicated in this presentation contains certain statements that are or may be forward looking. These statements typically contain words such as “will”, “expects” and “anticipates” and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this presentation. Factors that could cause actual results to differ include, but are not limited to, economic, social, and political conditions in Indonesia ; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulation and compliance cost; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for SILO developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits, and training, governmental and public policy changes; SILO’s ability to be and remain competitive; SILO’s financial condition, business strategy as well as the plans and objectives of SILO’s management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although SILO believes that the expectations of its management as reflected by such forward –looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and SILO undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

Contents

Where We Are In Lippo Karawaci 01

Highly Experienced & Professional Management 02

Our Operations 03

The Strategy & Business Model 04 - 06

Premier Private Hospital Group 07 - 10

Financial & Operational Performance 11 – 19

4

Where We Are In Lippo Karawaci 01

As of 31 Mar 2014 No. of Outstanding Shares : 23,077,689,619 Code : LPKR.JK ; LPKR IJ

LIPPO RELATED COMPANIES

32.34%

DEVELOPMENT REVENUE

RESIDENTIAL & URBAN DEVELOPMENT

• Lippo Village • Lippo Cikarang • Tanjung Bunga • San Diego Hills Memorial Park

• Kemang Village • The St. Moritz • City of Tomorrow • Park View Apartments • The Nine Residence • Holland Village • St Moritz Panakukang • Embarcadero

RECURRING REVENUE

HOSPITALS COMMERCIAL ASSET MANAGEMENT

• Siloam Hospitals • Retail Malls • Aryaduta Hotels • Town

Management Services, Leisure and Restaurants

• REIT, Mall & Hotel Management

PUBLIC

67.66 %

5

Highly Experienced & Professional Management

Board of Directors

Romeo LledoPresident Director

dr. AndryDirector, Chief Enterprise &

Operational Officer

dr. Anang PrayudiDirector, Network and

Development

Prof. George MathewDirector, Talent and

Development

dr. Grace FrelitaDirector, Quality

Kailas N. RainaDirector, Chief

Financial Officer

Board of Commissioners

Ketut Budi WijayaPresident

Commissioner

Theo L. SambuagaCommissioner

Lambock V. Nahattands

Commissioner

Ir. Jonathan L. ParapakIndependent

Commissioner

Farid HariantoIndependent

Commissioner

Prof. Dr. H. Muladi, S.HIndependent

Commissioner

02

RahmawatyCommissioner

6

Our Operations 03

Unrivalled scale across Indonesia

JCI Standard

Opera+onal Hospitals (16)

Future Developments (24)

7

4 Pillar Foundation

The Strategy & Business Model

Siloam Hospitals’ four pillar foundation has been key to the success of our existing hospitals and will serve as the basis for replicating this success at our expansion hospitals…

1 Emergency

Excellence in Emergency Services

500-911

2 Technology

3 Telemedicine

4 Doctors

State-of-the-Art Medical Equipment

and SystemsDigital Telemedicine

“Hub and Spoke”

Siloam Doctor Partnership and

Development Program

4 Pillar Foundation

04

8

Clinical Service Delivery


•  Primary clinics for corporate clients•  Public-Private-Partnership (PPP) model - Siloam Puskesmas (Public Health

Clinic) •  RSUS – First general hospital using public sector model

–  Additional demand from patients under governmental insurance and social schemes

–  Gateway to Indonesia’s “Universal Healthcare Coverage” and Government Health Insurance Programs

•  Specialist access for primary healthcare demand

•  Public-Private-Partnership

•  High standard and accessible medical care through focus on clinical governance and affordable price points

•  Access to Centres of Excellence through hub and spoke system and Tele-medicine

3

2

1

Siloam’s Integrated Healthcare Delivery Model

Post

-Ope

rativ

e Re

hab

Primary

Secondary

Tertiary

Research and Education •  Integrated platform with UPHMS and other partnerships•  Medical students training at RSUS, SHLV, and SHKJ

•  Integrated Centres of Excellence: Neuroscience, Cardiology, Cancer, Orthopedic, Urology, Fertility •  Hub and Spoke strategy and extensive coverage of specialised services via Digital Tele-Medicine•  Pioneering investments in Indonesia’s healthcare sector

–  Comprehensive Cancer Centre opened in 2011 –  Indonesia’s first Gamma Knife installed in 2012

•  Best in class and highly accessible healthcare services platform through:–  Rapid expansion of hospital network across Indonesia–  Attracting and retaining the best doctors with strong focus on

doctors’ welfare (SDPDP)–  Equip hospitals with State-of-the-Art facilities such as 128 slice

CT Scan and 1.5T MRI

One-stop continuum of care at primary, secondary, tertiary and quaternary levels

Quaternary

05

9

UPHMS (UPH Medical Sciences)


Centre of Excellence and Global Reputation

•  Alignment – across teaching and service delivery

•  Affiliate with agencies such as ACORN/NUS/SGH/UOM

•  Leading edge research

•  Best practice Models•  Remote Access Diagnosis (RAD)

and Remote Access Clinical Management (RACM)

•  Telemedicine•  Centres of Clinical Excellence/

Accreditation•  Teaching Hospital paradigm

•  Future workforce•  Systems based curriculum

converged with PBL•  Best practice replication•  Clinical placement•  Foundation for Innovation•  Overseas training – Singapore/

Australia/USA/China

Bringing Together Clinical, Research & Education

·

EducationResearch

Clinical

06

10

Our Hospitals (Mature and Developing)

Premier Private Hospital Group

TANGERANG (West of Jakarta)SILOAM HOSPITALS LIPPO VILLAGE

WEST JAKARTASILOAM HOSPITALS KEBON JERUK

EAST JAVASILOAM HOSPITALS SURABAYA

BEKASI (East of Jakarta)SILOAM HOSPITALS CIKARANG

JCIA308 Bed Capacity271 GP and Specialists476 NursesCentre of Excellence : Neurosience & Heart Centre

279 Bed Capacity210 GP and Specialists340 NursesCentre of Excellence : Urology & Orthopaedic

182 Bed Capacity150 GP and Specialists272 NursesCentre of Excellence : Fertility Centre

110 Bed Capacity90 GP and Specialists160 NursesCentre of Excellence : Occupational Health

EAST SUMATERA

SOUTH JAKARTA

SILOAM HOSPITALS JAMBI

MRCCC SILOAM SEMANGGI

331 Bed Capacity166 GP and Specialists238 NursesCentre of Excellence : Cancer Centre

106 Bed Capacity56 GP and Specialists126 NursesCentre of Excellence : Emergency & Trauma

EAST KALIMANTANSILOAM HOSPITALS BALIKPAPAN

228 Bed Capacity82 GP and Specialists153 NursesCentre of Excellence : Emergency & Trauma and Orthopedics

83% Ownership

79.6% Ownership

07

11

New Hospitals in 2012


TANGERANG (West of Jakarta)SILOAM GENERAL HOSPITAL (RSUS)

666 Bed Capacity69 GP and Specialists209 Nurses

NORTH SULAWESISILOAM HOSPITALS MANADO

230 Bed Capacity79 GP and Specialists134 NursesCentre of Excellence : Emergency

SOUTH SULAWESISILOAM HOSPITALS MAKASSAR

360 Bed Capacity85 GP and Specialists259 NursesCentre of Excellence : Cardiology & Emergency

DEPOK (South of Jakarta)SILOAM HOSPITALS CINERE

37 Bed Capacity8 GP and Specialists48 NursesCentre of Excellence: Cardiology

SOUTH SUMATERASILOAM HOSPITALS PALEMBANG

347 Bed Capacity117 GP and Specialists177 NursesCentre of Excellence : Emergency & Trauma

08

12

SOUTH JAKARTASILOAM HOSPITALS TB SIMATUPANG

270 Bed Capacity91 GP and Specialists141 NursesCentre of Excellence : Emergency, cardiology, oncology & neuroscience

New Hospitals in 2013


BALISILOAM HOSPITALS BALI

281 Bed Capacity99 GP and Specialists186 NursesCentre of Excellence : Emergency, medical tourism, orthopaedics & cardiology

09

BALIBIMC KUTA


BALIBIMC NUSA DUA


13

Hospitals under Construction

Premier Private Hospital Group 10

NORTH SUMATERASILOAM HOSPITALS MEDAN

EAST NUSA TENGGARASILOAM HOSPITALS KUPANG

WEST JAVASILOAM HOSPITALS PURWAKARTA

There are currently 24 sites under various stages of development

Operational & Financial PerformanceFor The 3 Months Ended March 31, 2014

15

Siloam is the clear leader and fastest growing private hospital group in Indonesia serving all segments of the popula7on

Strong Financial Performance

737 890

1,030 1,259

1,788

2,504

3,504

2008 2009 2010 2011 2012 2013 2014P

102 114 140

155

221

298

508

2008 2009 2010 2011 2012 2013 2014P

( In Rp Bn ) ( In Rp Bn )

+21%

+16%

+22%

+42%

+12%+23%

+10%

+43%

12

+40%

+35%

Revenue EBITDA

Note: EBITDA refers to income before deprecia8on, provisions for post-‐employment benefits, allowance for impairment in value, corporate income taxes and other expense and/or income (consis8ng primarily of financing income and others-‐net).

+40%+70%

14%13%

14%12%

12%

12%

14%

16

2014 Revenue Ramp Up

2,504

751

1,522

2,486

3,504

2013 Q1 2014A Q2 2014P Q3 2014P FY 2014P

40% growth

( In Rp Bn )

13

Note: *Projected GOR ramp up by quarter

14%21%*

43%*

71%*

100%*

17

64% 52%

8%

8%

13%

11%

12%

13%

13%

Q1 2013 Q1 2014

4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013

EBITDA Contribution and Growth by Category Revenue Contribution and Growth by Category

Commentary

+ 5% + 29%

+ 39% + 64% 85%

55%

6%

8%

9%

8%

11%

18%

Q1 2013 Q1 2014


-‐14% + 76%

+ 216% + 47%

The decreased EBITDA of 14% of the 4 mature hospitals was primarily due to:

§  On May 1, 2013, SIH started to incur rental expenses on the land and building being sub leased from the parent company. The total rental in Q1 2014 amounted to Rp 5 billion and Q1 2013 is NIL.

§  SHLC rental expense for its sale and leaseback agreement amounted to Rp 9 billion in Q1 2014 and Rp 6 billion in Q1 2013.

Q1 2014 Results by Hospital Category

Revenue & EBITDA Growth

Note: EBITDA refers to income before deprecia8on, provisions for post-‐employment benefits, allowance for impairment in value, corporate income taxes and other expense and/or income (consis8ng primarily of financing income and others-‐net).

14

+ 12% + 28%

18

Q1 2014 Consolidated Results

Revenue & EBITDA Analyses

(i)

Notes: (i)  Represents rental expenses for the land and buldings, Siloam is leasing from FREIT, PT Lippo Karawaci Tbk and other party. PT Lippo Karawaci started

charging rent for the land and buildings of 9 hospitals on May 1, 2013. (ii)  EBITDA refers to income before depreciation, provisions for post-employment benefits, allowance for impairment in value, corporate income taxes and

other expense and/or income (consisting primarily of financing income and others-net).

Particulars Q1 2014 Q1 2013

∆% IDR Bn IDR Bn

GOR 751 584 29%

Service Cost 188 156 21%

NOR 563 428 32%

Material Cost 238 187 28%

Gross Margin 325 242 35%

Operating Expenses 188 143 31%

EBITDAR 137 98 40%

% to GOR 18.3% 16.8%

Rental (i) 14 6 128%

HO Expenses 13 10 33%

EBITDA (ii) 110 82 34%

% to GOR 14.7% 14.1%

NPAT 24 26 -6%

% to GOR 3.3% 4.5%

15

19

Q1 2014 Consolidated Results

Balance Sheet

(i)

In Rp Bn Q1 2014 Q1 2013 ∆%

Assets

Cash & Equivalent 449 515 -13%

Property and Equipment 1,415 1,402 1%

Total Assets 2,631 2,601 1%

Liabilities & Equity

Liabilities 969 962 1%

Shareholders' Equity 1,662 1,639 1%

D/E Ratio 0.37 0.37

16

20

IPD Average Revenue Per Patient

Q1 2014

Average Revenue Per Patient

17

16.8 19.1

5.1

39.0

19.1

9.3

40.9

5.0

15.5 19.8

11.1

39.4

7.1

15.6 20.2 20.4

11.0

33.7

6.9

14.6

23.0

-‐

10.0

20.0

30.0

40.0

50.0

4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013 2010 2011 2012 2013 Q1 2014

OPD Average Revenue Per Patient

0.6 0.7 0.6

2.0

0.7 0.5

2.1

0.2 0.5

0.8 0.5

2.1

0.2

0.6

1.0 0.8

0.6

2.2

0.2 0.5

1.5

-‐

0.5

1.0

1.5

2.0

2.5

4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013 2010 2011 2012 2013 Q1 2014

(Rp Mn)

(Rp Mn)

21

169,145

31,845

10,945 6,466 20,487

3,178

168,562

38,383

13,560 14,772

37,747 18,333

4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013 Q1 2013 Q1 2014

ED Visits (+26%) OPD Visits (+20%)

21%

24%84%

20,434

3,830 937 1,259

5,527

1,034

21,056

4,538

1,380 1,226

8,985

4,552

4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013 Q1 2013 Q1 2014

-3%

3%

63%

11,497

2,465 1,028 1,636

3,689

276

11,420

3,018 1,384

2,676

4,962

2,576


Q1 2013 Q1 2014

22% 64%35%

IPD Admissions (+26%)

Operational Update Patient Visits & Admissions

18

§  Total visits and admissions Q1 2013 : 310,872

§  Total visits and admissions Q1 2014 : 379,972

Strong throughput growth at all entry points and conversion to IPD across all hospitals

22%

128% 47%

35%

18%477% 340%

833%

-0%

-1%

Q1 2014

Note: Total of OPD visits includes One Day Care Visits

22

2010 to Q1 2014

Number of Hospital Growth 19

4

Note: Image courtesy of iconbug.com

2010 2011 2012 2013 / Q1 2014

4 Hospitals 7 Hospitals 12 Hospitals 16 Hospitals

Thank You

Indonesia's Largest, Fastest Growing, World Class Hospital Group ...

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