PT Mitra Keluarga Karyasehat Tbk

Confidential

PT Mitra KeluargaKaryasehat TbkInvestor Presentation January 2021

Confidential I

This presentation has been prepared for informational purposes only by PT Mitra Keluarga Karyasehat Tbk (“Mitra Keluarga” or the “Company”) and solely for use in connection with the Company’s update on its unaudited full year 2020 results. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of their respective affiliates, and their respective commissioners, directors, employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Any decision to purchase or subscribe for securities of the Company should not be made on the basis of the information contained in this presentation. The presentation is not an offer of securities for sale in the United States or elsewhere. Securities may not be offered or sold in the United States or elsewhere absent registration or an exemption from registration. This presentation and its contents are confidential unless they are or become generally available as public information in accordance with prevailing laws and regulations (other than as a result of a disclosure by you) and must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation, including the information on the unaudited financial results of the Company and the projected financial results of the Company, and opinions contained herein, is provided as of the date of this presentation and is subject to change without notice, including change as a result of the issuance of the full year 2020 audited results of the Company. This presentation includes "forward-looking statements". These statements contain the words "anticipate", "believe", "intend", estimate", "expect" and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans, objectives relating to the Company's products and services and anticipated product launches) are forward-looking statements. Such forward-looking statements are based on numerousassumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Although the Company believes that such forward-looking statements are based on reasonable assumptions, it can give no assurance that such expectations will be met. You are cautioned not to place undue reliance on these forward looking statements, which are based on current views of the Company’s management on future events. Market data and certain industry forecasts used in this presentation were obtained from market research, publicly available information and industry publications which have not been independently verified, and no representation is made as to the accuracy of such information.

Forward Looking Statement

1

Confidential I

Section 1

COVID-19 Update

2

Confidential I

Agility in Adversity

3

▪ Turned disruption to a new source of growth

▪ Acquired BPJS hospitals and doubled EBITDA in 2 years

▪ Increased revenue intensity on private patients +30%(1)

BPJS Disruption (2017-2018)

▪ Turned crisis into record earnings

▪ Quick actions to care for team and COVID-19 patients

COVID-19 Crisis

(1) 2015-2018 pre-dengue outbreak

Confidential I

Overcoming Two Major Disruptions

4

BPJS Disruption Turnaround in Two Years COVID-19 Crisis V-shaped Recovery

10%

20%

2%

5%

19%

0%

5%

10%

15%

20%

2015 2016 2017 2018 2019

(y-y % EBITDA growth)

5.5%

31%

67.0%

(55.0%)

(35.0%)

(15.0%)

5.0%

25.0%

45.0%

65.0%

1Q20 2Q20 3Q20 4Q20 F

(y-y % EBITDA growth)

(48%)

(1)

(1) Q4 2020 numbers are indicative

Confidential I

COVID-19 Crisis – Turned Challenges into Opportunity

5

Record EBITDA (IDR bn)Record Revenue (IDR bn)

875

567

875

1,100

Q1 2020 Q2 2020 Q3 2020 Q4 2020

36%

26%

42%43%

318

149

364

470(1)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

100

150

200

250

300

350

400

450

500

1Q20 2Q20 3Q20 4Q20*

EBITDA margin (%) - RHS EBITDA


(1) (1)

Confidential I

COVID-19 Crisis – Quick Actions

6

▪ Captures COVID-19 business

▪ Improved non-COVID-19 efficiency – higher BOR

▪ Provide a safe working environment for our team

▪ Provide care for COVID-19 patients

85%

65%

81%

42%

84%

49%

88%

59%

BOR COVID BOR NON COVID

Q1 2020 Q2 2020 Q3 2020 Q4 2020

Note: BOR was calculated from the average daily BOR(1) Q4 2020 numbers are indicative(2) Projected number of beds(3) Q1 2020 only includes March numbers

210 482 729

1,039

1,500

2,787 2,551

2,346 2,066

1,665

2,997 3,033 3,075 3,105 3,165

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021P

COVID-19 beds Non-COVID-19 beds

(No. of beds)

COVID-19 beds vs Non-COVID-19 beds Bed Occupancy Rate (BOR)

(1)

(%)

(2)

Increased operational efficiency

(3)

(1)

Confidential I

COVID-19 Crisis - Roadmap Ahead

7

▪ East Java is Indonesia top-4 contributor

▪ Elevated and rising BOR rate

▪ Q1 2021 to increase COVID beds from 1,039 to 1,500

▪ Opening of Pondok Tjandra hospital in East Java (will be assigned as COVID-19 referral)

0

200

400

600

800

1,000

1,200

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

15-A

pr

29-A

pr

13-M

ay27

-May

10-J

un

24-J

un

8-Ju

l22

-Ju

l5-

Au

g19

-Au

g2-

Sep

16-S

ep30

-Sep

14-O

ct28

-Oct

11-N

ov

25-N

ov

9-D

ec23

-Dec

6-Ja

n20

-Jan

EAST JAVA

Confirmed - Active cases

7DMA of daily total confirmed (RHS)

77%

64%

87%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jakarta East Java

BOR

29-Nov 17-Dec 18-Jan

Source: Company data, COVID-19 task force and Verdhana

Confidential I

COVID-19 Crisis - Continues to Persist in 2021

8

Elevated COVID-19 CasesGovernment’s COVID-19 Strategy

▪ Rising infection rate on increased number of tests

▪ Rising BOR on increased number of beds

▪ No lockdown – only selective tightening

▪ Focus in pushing out vaccines

13%

28%

Nov-20 Latest

National Infection Rate (%)

23,500

41,500

Nov-20 Latest

National No. of People Tested

9%

20%

Nov-20 Latest

Jakarta Infection Rate (%)

10,812

17,128

Nov-20 Latest

JakartaNo. of People Tested

5,719

7,147

8,702

74%71%

87%

Q3 2020 Q4 2020 Q1 2021*

Jakarta COVID-19 Beds & BOR

Bed capacity BOR (%) - RHS

Source: Company data, COVID-19 task force, Jakarta government data and Verdhana(1) Projected Q1 2021 beds and BOR

(1)

Confidential I

BPJS Disruption – Turned into A New Source of Growth

9

Acquired BPJS Kasih Hospitals – In Two Years

▪ Increased revenue by c.40%

▪ Doubled EBITDA and Doubled ROIC

Acquisition Opportunity

▪ Adopt MIKA’s best practices

▪ Boost efficiency and motivation

▪ Cross synergies with acquired hospitals

Two Discoveries

▪ New business in BPJS (funded by the government)

▪ Scalability - expertise and core strength

7.2%

13.9%

2017 - Acq. 2020

Kasih Group – Doubled ROIC %

Note: EBITDA / Acquisition EV used

Confidential I

Focused on Increasing Revenue Intensity for Private Patients

10

Revenue intensity has increased 30% (2014-2018)

More sophisticated and complex medical offerings

▪ 128-slice CT Scan IDR9bn

▪ Angiography USD700k

12-24 months payback

3.4

3.8 3.7

4.1

4.4

3.9

4.6

2014 2015 2016 2017 2018 2019 2020

(IDR mn)

Mitra Keluarga (MK only) revenue/inpatient/day

30%Dengue outbreaklowered intensity

Confidential I

Roadmap Ahead

11

▪ COVID may persist into 2021

− Increase no. COVID bed capacity

− Serology test for post-vaccination antibody check

▪ Hospital expansion

− Organic – EBITDA turned positive in 6 months

− Inorganic – Scalability + Leverage on know-how and best practices

− Proven track record: fully free cash flow funded

▪ Increase revenue intensity

− More sophisticated and complex medical offerings

− 12-24 months payback period on equipment

▪ Reversal of fortune from BPJS standard class system (c.40% of voluntary member) – expected in 2022

Confidential I

Financial Summary

12

Note Q4 2020 and 2020 numbers are indicative

4Q19 1Q20 2Q20 3Q20 4Q20P 2018 2019 2020P

Revenue 822 875 566 875 1,100 Revenue 2,713 3,205 3,416

EBITDA 284 318 149 364 470 EBITDA 960 1,148 1,301

Net Income 204 220 98 252 360 Net Income 659 791 930

EBITDA margin (%) 35% 36% 26% 42% 43% EBITDA margin % 35% 35.8% 38.1%

Net profit margin (%) 25% 25% 17% 29% 33% Net profit margin % 24% 24.7% 27.2%

Revenue yoy (%) 21% 9% -27% 10% 34% Revenue yoy % 9% 18.1% 6.6%

EBITDA yoy (%) 22% 6% -48% 31% 65% EBITDA yoy % 5% 19.6% 13.3%

Net profit yoy (%) 45% 7% -46% 26% 76% Net profit yoy % -7% 20.0% 17.6%

Confidential I

Section 2

Company Overview

13

Confidential I 14

▪ One of the largest hospitals by patient volume(1) compared to private multi-specialty hospitals listed on IDX

▪ One of the largest multi-specialty hospitals by number of hospital beds(2)

▪ Community-focused, with large patient base and strong captive demand

▪ Comprehensive and integrated service offerings

Leading Indonesian Hospital Group at a Glance

One of the Largest Private Hospital Groups in Indonesia with a Strong Track Record

Note: As of 31 December 2020 unless otherwise stated (1) Calculated by adding inpatient days and outpatient visits in the year ended 31 December 2019(2) By number of hospital bed in the year ended December 31, 2019, as compared to other listed hospitals on the Indonesia Stock Exchange(3) ROIC is calculated as (Income from Operations – Tax) divided by Average (Total Debt + Total Equity – Cash - Land Bank – Advance for Land Bank). Based on audited 2019 financials(4) Refers to the indicative 2020 EBITDA margin. EBITDA refers to income before depreciation, provision of future employee benefits, allowance for impairment in value, corporate income taxes and other expenses and/or income (consisting primarily of

administration fees of credit card providers and interest on bank loans)(5) Bloomberg, as of 7 January 2021. FX used US$1:IDR14,285(6) 2016-2020 revenue CAGR. Based on audited 2016-2019 revenue and indicative 2020 revenue

25 Hospitals

3,105Operational bed

capacity

c.30 Years of brand

heritage

1,634Doctors

(including 1,342 specialists)

3,799 Nurses and

1,693 medical staff

49.5%ROIC – Excluding

Land Bank (3)

38.1%EBITDA margin (4)

US$2.7 bnMarket

capitalization (5)

8.8%Revenue growth (6)

Confidential I 15

Strong Profitability and Growth when Compared with Peers

Snapshot of Financial and Operational Metrics

In a League of its Own: Highest Profitability Coupled with Strong Growth

Source: Bloomberg, company informationNote: Based on audited 2019 financials and indicative 2020 financials(1) EBITDA refers to income before depreciation, provision of future employee benefits, allowance for impairment in value, corporate income taxes and other expenses and/or income (consisting primarily of administration fees of credit card providers and

interest on bank loans)(2) 2017-2019 revenue CAGR

(IDR bn) 2020P 2019 Growth

Revenue 3,416 3,205 6.6%

EBITDA(1) 1,301 1,148 13.3%

EBITDA Margin 38.1% 35.8% 2.3%

Net Income 930 791 17.6%

Net Income Margin 27.2% 24.7% 2.5%

2020P 2019 Growth

No. of Operational Beds 3,105 2,876 8.0%

No. of Inpatient Days (’000) 572 624 (8.3%)

No. of Outpatient Visits (’000) 2,062 2,679 (23.0%)

Average Revenue per Inpatient Day (IDR ’000) 3,915 3,166 23.6%

Average Revenue per Outpatient Visit (IDR ’000) 570 459 24.3%

(2)

Siloam International Hospitals

IHH Healthcare Bhd

KPJ Healthcare Bhd

Bangkok Dusit Medical Services

Bumrungrad Hospital PCL

Chularat Hospital PCL

Medikaloka Hermina

Sarana Meditama Metropolitan

Raffles Medical Group Ltd

-5%

0%

5%

10%

15%

20%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

2015-2019 revenue CAGR (%)

2019 ROIC (%)

Confidential I 16

Strong Track Record of Over 30 Years

For over 30 years, we have delivered both strong growth and profitability through best-in-class operations, operational excellence and well-executed expansion

% revenue from BPJS

0%0%

0%0%

0%0%

13.5%

12.4%(1)

No. of operational beds

70412

715742

1,3691,725

2,876

3,105

19901995

20002005

20102015

20192020

• RSMK Jatinegara

• Mitra Kemayoran

• Sold equity interest in

– RSMK Jatinegara

– RS Int’l Bintaro

• Mitra Keluarga Bekasi Timur

• Mitra Keluarga Tegal

• Mitra Keluarga Waru

• Mitra Keluarga Cibubur

1989

1993

1998

1999

2001

2002

2004

2008

2009

2010

2011

2014

• RS International Bintaro

2015

• Mitra Keluarga Kalideres

• Kasih Group(7 hospitals)

2017

2018

2019

• Mitra Keluarga Bintaro

• Mitra Keluarga Pratama Jatiasih

2020

• Bina Husada

• Mutiara Hati

• Mitra Keluarga Bekasi Barat

• Mitra Keluarga Surabaya

• Mitra Keluarga Kelapa Gading

• Mitra Keluarga Depok

• Mitra Keluarga Cikarang

• Mitra Keluarga Kenjeran

• Mitra Keluarga Gading Serpong

• RSIA PantiAbdi Dharma

Existing Hospital

Disposed Hospital

New Hospital

Acquisition

No. of hospitals 12

35

912

24

25

(1) Based on indicative 2020 revenue

Confidential I

Section 3

Key Investment Highlights

17

Confidential I 18

Key Investment Highlights

Proven Ability to Attract and Retain High Quality Healthcare Professionals

Leading Hospital Operator with Proven Operational Track Record

Established Track Record of Superior Ramp-up in New Hospitals

Strong and Well-Established in Attractive Greater Jakarta and Surabaya Areas

Best-in-Class Community Hospitals & Comprehensive Service Offerings3

4

2

5

Well Qualified and Experienced Management Team

1

6

Confidential I 19

Leading Hospital Operator with Proven Operational Track Record

Superior Patient Volume, Occupancy and Profitability

Inpatient Days per Doctor 2016 – 2019

462

412

359

411

365 390

184

267

216 233 257 252

2016 2017 2018 2019

MIKA Hospital A Hospital B

1,889

1,665 1,605

1,763

1,026 992

820 864

1,467

1,676 1,753

1,395

2016 2017 2018 2019

MIKA Hospital A Hospital B

Outpatient Visits per Doctor 2016 – 2019

ProfitabilityRevenue (IDR bn)

Note: Based on audited 2016-2019 financials and indicative 2020 financialsSource Company data, public information

EBITDA margin (%)

2,435 2,495 2,713 3,205 3,416

36.6 36.5 35.4 35.8 38.1

2016 2017 2018 2019 2020P

Confidential I

DKI Jakarta4%

East Java15%

Others81%

DKI Jakarta

16%

East Java15%

Others69%

Accounts for 19% of Indonesia’s Population in 2018…

…and 31% of Indonesia’s GDP in 2018

20

With Highest Availability of Healthcare Professionals

Leadership in These Attractive RegionsAttractive Economic and Demographic Fundamentals of Greater Jakarta and Surabaya Market

Strong and Well-Established in the Attractive Greater Jakarta and Surabaya Market

Source: Badan Pusat Statistik Indonesia (Indonesian Statistical Center), Ministry of Health Indonesia, public information

0.60.2 0.2

0.7

0.1 0.1

0.3

0.1 0.1

Jakarta Java Indonesia

GP's Specialist Dentist Total

No. of Doctors per 1,000 Population (2019)

1.6

0.4 0.4

19

14

9

6

5

4

3

MIKA Siloam Hermina Sari Asih Awal Bros OMNI Ramsay

No. of Private Multi-Specialty Hospitals in Greater Jakarta and Surabaya (2019)

Confidential I 21

Mitra Keluarga has 32 specialty services across our hospitals, best-in-class community hospitals and is continuously evaluating and expanding our specialty offerings to focus on more complex services

Comprehensive Service Offerings

▪ Strategically located in attractive population catchment areas with captive patient base

− Many patients reside within close proximity to our hospitals

− Patients typically visit hospitals within their local communities to avoid traffic congestion

▪ Cater to a wide spectrum of patient across income levels

− Rooms range from SVIP rooms to Class 3 rooms (up to 8 beds per room)

▪ Commitment to our patients and surrounding communities

Best-in-class Community Hospitals

Best-in-Class Community Hospitals and Comprehensive Service Offerings

Presidential Suite

Class I

SVIP

Class II

VIP

Class III

General services

▪ Laboratory

▪ Emergency Room

▪ Pharmacy

▪ Intensive Care Unit (ICU) Rooms

▪ Radiology

Focus specialty areas

▪ General Surgery

▪ Internal Medicine

▪ Obstetrics & Gynecology

▪ Pediatrics

▪ Neurosurgery

▪ Orthopedics

▪ Cardiovascular

▪ Urology

Other specialty areas

▪ Acupuncture

▪ Allergy & Immunology

▪ Anesthesiology

▪ Breast

▪ Cosmetic / Reconstructive Surgery

▪ Dental

▪ Dermatology

▪ Diabetes & Thyroid

▪ Ear, Nose & Throat

▪ Endoscopy

▪ Fertility

▪ Hematology

▪ Medical Rehabilitation

▪ Nephrology

▪ Nutrition Consultant

▪ Oncology

▪ Ophthalmology

▪ Pediatric Foot

▪ Pediatric Surgery

▪ Psychiatry

▪ Psychology

▪ Pulmonology

▪ Sleep Disorders

▪ Slimming & Health Sport Therapy

Confidential I 22

Established Track Record of Superior Ramp-up in New Hospitals

Gading Serpong (Opened in Jun 2018)

No. of Average Outpatient / Visits

7

291

2018 2020

2.3

62.5

2018 2020

Average Occupancy Rate (%)

No. of Average Inpatient / Days

2

67

2018 2020

Pratama Jatiasih (Opened in Jun 2019)


3

61

2019 2020


8.2

64.6

2019 2020


1

39

2019 2020

Bintaro (Opened in Jun 2019)


20

120

2019 2020


11.0

35.6

2019 2020


5

31

2019 2020(1)

(1)

(1)

(1)

No. ofOperationalBeds

87 11129 75 60 113No. ofOperationalBeds

No. ofOperationalBeds

(1) 6 months of operation

Track record of reaching positive EBITDA in c.6-9 months and positive net income in c.18-24 months

(1)

(1)(1)

(1)(1)

Confidential I 23

Proven Ability to Attract and Retain High Quality Healthcare Professionals

▪ Continuous investment in their professional development through trainings, mentorships and scholarships

▪ High patient volumes and established track record contributes to strong financial compensation and employment stability for doctors

▪ High doctor retention rate of more than 95% (including general practitioners and specialists) in 2020

▪ Substantial majority of general practitioners at our hospitals who leave for further studies return after completion of studies (based on available vacancy)

Long-standing Relationships with Our Doctors

▪ Working environment that is conducive to learning given high patient volumes and our commitment to technology-enabled working facilities

▪ Attractive compensation structure includes revenue-sharing arrangement to align the interests of Mitra Keluarga and our doctors

▪ We believe we are an “Employer of Choice” for doctors and our senior doctors’ professional networks

Effective Recruitment Efforts

Under 30 57.7%

31 to 45 37.6%

46 to 55 4.5%

Above 55 0.2%

Total: 7,382 Employees (1)

No. of Medical Staff

152 208 226 268 292

9181,056 1,135 1,251 1,342

2,875

3,2163,401

3,9813,799

2016 2017 2018 2019 2020

Doctors Specialists Nurses

Employee Breakdown By Age (Dec 2020)

(1) Includes both full and part time specialists. Specialist doctors are typically independent doctors, not employed directly by us. Full-time specialists work at least 40 hours per week at our hospitals and part-time specialists work less

Confidential I 24

▪ Management team is equipped with diverse yet relevant experiences with in-depth knowledge about the healthcare industry

▪ Average of 16 years of healthcare experience

▪ Loyal and dedicated to Mitra Keluarga

− 20 out of 25 have been at Mitra Keluarga for more than 10 years

Exceptional Management

▪ Track record of profitability across all hospitals within 1 year of operation

▪ Successfully steered Mitra Keluarga through the Asian Financial Crisis in 1998

▪ Established governance and oversight framework delivers growth while maintaining high quality service level

− Consistent set of Key Performance Indicators (KPIs) applied across all hospitals

− Monitored on a monthly basis

Excellent Track Record

Well Qualified and Experienced Management Team

Board of Directors

• 6 years at Mitra Keluarga (1)

• 25 years of experience in the healthcare industry

• Education: – Bachelor: Uni. of Texas, Austin

– MBA: Uni. of Texas, San AntonioJoyce V. HandajaniDirector

• 22 years at Mitra Keluarga


• Education: – Bachelor: Bogor Institute of

Agriculture (IPB)

– MBA: San Diego State Uni.Rustiyan Oen

President Director

• 25 years at Mitra Keluarga


• Education: – Medicine: Uni. of Indonesia

– Postgraduate Management: Atma Jaya Uni.dr. Esther Ramono

Independent Director

dr. Esther RamonoRegional II Director• 25 years at

Mitra Keluarga• 27 years of

experience in healthcare the industry

dr. Ivonne Maria RampunRegional III Director• 19 years at Mitra

Keluarga• 29 years of


dr. Nurvantina PadinaRegional I Director• 19 years at Mitra



dr. Dian Mariana TandelaRegional IV Director• 22 years at Mitra


experience in the healthcare industry

Regional Director

dr. ArinaYuli RoswiyatiRegional V Director• 8 years at Mitra


experience in the healthcare industry

(1) Previously with Kalbe Group for 19 years

Confidential I

Section 4

2020 Business Update

25

Confidential I

Key Performance Indicators

2019 2020P YoY growth

Revenues by patient type(IDR bn)

Inpatient 1,977 2,240 13.3%

Outpatient 1,228 1,176 (4.2%)

Total 3,205 3,416 6.6%

Operational metrics

No. of Inpatient Admissions (‘000) 208 177 (15.0%)

No. of Outpatient Visits (‘000) 2,679 2,062 (23.0%)

Patient Volume (‘000) 2,887 2,253 (22.0%)

No. of Inpatient Days (‘000) 624 572 (8.3%)

No. of Operational Beds 2,876 3,105 8.0%

Bed Occupancy Rate (BOR) 59.5% 53.8% (5.7%)

Average Length of Stay (ALoS) 3.0 3.2 6.8%

Revenue per Inpatient Day (IDR’000) 3,166 3,915 23.6%

Revenue per Outpatient Visit (IDR’000) 459 570 24.3%

EBITDA(IDR bn)

EBITDA (1) 1,148 1,301 13.3%

% Margin 35.8% 38.1% 2.3%

Net Income 791 930 17.6%

% Margin 24.7% 27.2% 2.5%

Note: Based on audited 2019 financials and indicative 2020 financials(1) EBITDA refers to income before depreciation, provision of future employee benefits, allowance for impairment in value, corporate income taxes and other expenses and/or income (consisting primarily of administration fees of credit card providers and

interest on bank loans)

26

Confidential I

324

183

307

362

Q1 2020 Q2 2020 Q3 2020 Q4 2020

179

115

138

180

Q1 2020 Q2 2020 Q3 2020 Q4 2020

141

693

334

495539

Q1 2020 Q2 2020 Q3 2020 Q4 2020

27

Outpatient Visits (‘000)

Inpatient Days (‘000)

V Shape Recovery in 2020

Revenue Outpatient (IDR bn)

Revenue Inpatient (IDR bn)

551

384

567

738

Q1 2020 Q2 2020 Q3 2020 Q4 2020


(1) (1)

(1)

(1)

Confidential I 28

V Shape Recovery in 2020

875

567

875

1,100

318

149

364

470

220

98

252

360

Q1 2020 Q2 2020 Q3 2020 Q4 2020

Total revenue EBITDA Net income

(IDR bn)

EBITDA margin Net income margin

36%

26%

42%

25%

17%

29%

43%

33% 2,997

3,033

3,075 3,105

66%

42%

49%

63%

Q1 2020 Q2 2020 Q3 2020 Q4 2020

Total beds Bed occupancy rate

(No. of beds)(%)

Operational HighlightsFinancial Highlights


(1) (1)

Confidential I

Mitra Keluarga’s Response To COVID-19: Adapting to the “New Normal”

Revenue measures

▪ Increased bed capacity for COVID-19 from 482 beds as of 30 June 2020 to 1,039 beds as of 31 December 2020 and we expect to further increase the number of COVID-19 beds to 1,500 by Q1 2021

▪ Conducted COVID-19 testing (rapid test & PCR swab test) in all hospitals. Currently we have 10 laboratories which can handle c.2,000 PCR swab tests daily

− As of Dec 2020, Mitra Keluarga has performed 356,000 rapid tests and 205,000 PCR swab tests

▪ Provided teleconsultations, home care services and drugs delivery as solutions for the “New Normal”. To date, >2,000 teleconsultations have been conducted

Cost saving measures

▪ Improved cost efficiency and optimize productivity

▪ Optimizing employee compensation and operating expenses

Putting patient and healthcare personnel’s safety first

▪ Imposed strict patient and visitor screening measures in each hospital entry point

▪ Set up temporary facilities outside the main building to treat respiratory related cases

▪ Provided supplements to healthcare personnel to increase their immunity

▪ Set up/ improve facilities within the main building to accommodate more infection cases

▪ Employ strict clinical protocols and measures for infection control

20.2 29.3

18.5 15.8 18.9 27.3

15.8 17.9

Q1 2020 Q2 2020 Q3 2020 Q4 2020

Employee Compensation as % of RevenueOperating Expenses as % of Revenue

(%)

29

210 482 729 1,039 1,500

2,787 2,551 2,346 2,066 1,665

2,997 3,033 3,075 3,105 3,165

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021P

COVID-19 beds Non-COVID-19 beds

(No. of beds)

Visitors must wear masks before entering hospitals

Visitors will undergo screening before entering hospitals

Suspected COVID-19 patients will join a separate examination line

Regular disinfection of hospitals

(1)

(1) Projected number of beds

Confidential I 30

▪ The increase in beds allocated for COVID-19 patients and the high number of COVID-19 infections in Jakarta and Java supported the COVID-19 related inpatient days

▪ As of Sep 2020, c.90% of Mitra Keluarga’s doctors have returned to normal practice hours

▪ Due to normalization of doctor operating hours and COVID-19 cases being handled well, as of mid December we have seen a recovery in non-COVID-19 patient volumes as well

Inpatient Volume Supported by COVID-19 Related Services

Increase in Average Revenue per Inpatient Day

176

98 10668

3

1732 112

179

115138 141

Q1 2020 Q2 2020 Q3 2020 Q4 2020P

Non-COVID-19 related COVID-19 related

141

(Inpatient days ‘000)

▪ Average revenue per outpatient visit is also higher in 2020 when compared to 2019

▪ With the increase in testing capacity to 10 laboratories, we expect further support from COVID-19 related services

Increase in Average Revenue per Outpatient Visit

▪ Average revenue per inpatient day is higher in 2020 when compared to 2019

▪ This was supported by the increase in COVID-19 bed capacity from 210 in Q1 2020 to 1,039 at the end of December 2020

Resilient Volume and Prices Due to Support From COVID-19 Related Services

3,166

3,915

2019 2020P

(IDR ‘000)

459

570

2019 2020P

(IDR ‘000)

Note: Based on audited 2019 financials and indicative 2020 financials

62

79

Confidential I 31

COVID-19 treatment has a higher reimbursement rate compared to typical inpatient revenue per day

Average Inpatient Revenue Per Day is Higher for COVID-19 treatments

COVID-19 a Perfect Substitute?

No. Type of COVID-19 treatmentReimbursement rate

(IDRmn/day)

Confirmed/suspected cases without co-morbidities/complication

1 ICU with ventilator 15.5

2 ICU without ventilator 12.0

3 Negative pressure isolation with ventilator 10.5

4 Negative pressure isolation without ventilator 7.5

5 Non-negative pressure isolation with ventilator 10.5

6 Non-negative pressure isolation without ventilator 7.5

Confirmed/suspected cases with co-morbidities/complication

1 ICU with ventilator 16.5

2 ICU without ventilator 12.5

3 Negative pressure isolation with ventilator 14.5

4 Negative pressure isolation without ventilator 9.5

5 Non-negative pressure isolation with ventilator 14.5

6 Non-negative pressure isolation without ventilator 9.5

Source: Ministry of Health Indonesia, company information, public information(1) Based on gross revenue(2) Based on FY 2019 Gross revenue in Mitra Keluarga Only (3) Based on FY 2019 Gross revenue in Kasih Group

(1) (1) (2) (3)Kasih Group(-) Pressure w/o Ventilator

(-) Pressure w Ventilator

5.1

7.5

10.5

1.5

Confidential I

Section 5

Update on BPJS

32

Confidential I 33

▪ As of end-2019, BPJS fund had a carry over deficit of IDR 15.5trn

Reforms to Premiums in 2020 to Resolve BPJS Deficit

Historical Funding Deficit

Despite historical funding deficit, new reforms to premiums and the merger of classes may help address the funding deficit and improve non-JKN patient volumes

Improving Regulatory Environment with Reforms to BPJS

(IDR/month) 2016-2019 1Q20 2Q20 3Q20-4Q20 2021-onwards

Subsidized (PBI) 23,000 42,000 42,000 42,000 42,000

Voluntary members

Class I 80,000 160,000 80,000 150,000 150,000

Class II 51,000 110,000 51,000 100,000 100,000

Class III 25,500 42,000 25,000 42,000 42,000

- Paid by members 25,500 42,000 25,000 25,500 35,000

- Paid by gov't (subsidy) 16,500 7,000

Formal workers (PPU)

Premium % income 5% 5% 5% 5% 5%

Ceiling income 8,000,000 12,000,000 12,000,000 12,000,000 12,000,000

(1.9)(4.4)

0.2

(10.2)(12.3)

3.3

2014 2015 2016 2017 2018 2019

(IDR trn)

Source: Ministry of Health Indonesia

Confidential I 34

Scenario #2Scenario #1

BPJS Plans to Implement New Classes

Scenario is yet to be determined by the government, but Mitra Keluarga could benefit from either scenario

Class I

Class II

Class III(subsidized and non-

subsidized)

Class III

Class I

Class II

Class III(subsidized and non-

subsidized)

Class III(subsidized)

Class III(non-subsidized)

Source: Ministry of Health Indonesia

Confidential I 35

BPJS Voluntary Members Class Breakdown by GeographyMIKA’s Low Revenue Contribution from BJPS Compared to Peers in 2019

Poised To Benefit From Either of BJPS’ New Class Policies

Mitra Keluarga has the highest exposure to private patients and is in the best geographical position to benefit from a portion of class I and class II members becoming private patients due to the merger of classes

40%

26% 22% 18%12%

17%

25%

29%

25%

21%

21%20%

35%45%

53%61%

68%63%

DKI Jakarta Bekasi Surabaya Depok Tangerang National

Class I Class II Class III

87%78%

52%

13%22%

48%

MIKA SILO HEAL

Non-BPJS BPJS

Source: Ministry of Health Indonesia, company information, public information

Hospital A Hospital B

Confidential I

Section 6

FY2021 Business Plan and Key Growth Strategies

36

Confidential I 37

Business Plan & Key Growth Strategies Overview

1

Increase Capacity Organically and Inorganically via a strong pipeline of greenfield hospitals in Greater Jakarta & Surabaya as well as a track record of successful acquisitions

2

Embrace Universal Healthcare Coverage (UHC) Implementation

3

Increase revenue intensity via more sophisticated and complex medical offerings

4

Continue to improve operating efficiency

Confidential I 38

Strong Pipeline of Greenfield Hospitals in Greater Jakarta & Surabaya

Proven Track Record of Capacity Building Organically and Through Acquisitions

Increase Capacity Organically and Inorganically

(1) Full planned capacity

Hospital Site Identified Land Projects

Construction

Permits Secured

Hospitals in

Construction Bed capacity(1) Expected Opening

1 Site 1 ✓ ✓ ✓ ✓ 150 Jan 2021

2 Site 2 ✓ ✓ ‒ ‒ 200 2022

3 Site 3 ✓ ✓ ‒ ‒ 200 2022

4 Site 4 ✓ ✓ ‒ ‒ 200 2023

5 Site 5 ✓ ✓ ‒ ‒ 200 2023

6 Site 6 ✓ - ‒ ‒ 200 2024

Total beds in pipeline 1,150

• Current number of hospitals: 15

• Current bed capacity(1): 2,761

• Current number of hospitals: 10

• Current bed capacity(1): 999

• Total number of hospitals: 25

• Total bed capacity(1): 3,760

Acquired HospitalsGreenfield Hospitals

Confidential I 39

Recent Successful Acquisition and Continued Exploration of Opportunities

Hospital Under Development Progress Update

Increase Capacity Organically and Inorganically (cont’d)

Site 4 – Surabaya – Targeted Opening in February 2021

Aug 19

Aug 2019 – Jan 2020 Jan -Jun 2020 Jun – Sep 20 Q1 2021

Ground Breaking

Bored Piled &Ground Structure

(Basement & 1st Floor)

Upper Structure(2nd Floor - Top Floor) Finishing Architecture Opening

PLA

N

▪ Expect to open our 26th hospital located in the Surabaya area in February 2021 - awaiting operational permit issuance

▪ Acquisition of RSIA Panti Abdi Dharma which has been completed in 2Q 2020

▪ Continue to explore more M&A opportunities and grow our land bank in strategic locations within Greater Jakarta and Surabaya area

Acquisition of RSIA Panti Abdi Dharma

PR

OG

RES

S

100% 100% 100% 100%

Confidential I 40

Track Record of Increasing Complexity of Services

▪ Higher complexity of services are offered to patients with complex needs

▪ Higher patient acuity

− Patients with co-morbidities

− Chronic diseases

▪ Complex services drive higher revenue per patient

− E.g. Angioplasty, endoscopy, laparoscopy

▪ Results in higher margins since majority of the expenses are fixed

▪ Operating theatres

▪ ICU beds

▪ Intensivists

▪ Critical care nurses

▪ Creating more specialist centres

Increase Our Capabilities to Manage Complexity

Increase Revenue Intensity via More Sophisticated and Complex Medical Offerings

221 220 220250

282

2015 2016 2017 2018 2019

24,888 25,228 25,097

40,198

53,370

2015 2016 2017 2018 2019

No. of ICU / Intermediate / NICU / PICU / NSPC (1) Beds

No. of Surgeries / Operations Performed (2)

(1) Neonatal special care(2) Defined as all procedures done in operating theatres

Confidential I 41

New Service – IVF Clinics

Increase Revenue Intensity via More Sophisticated and Complex Medical Offerings

Confidential I

Out of Pocket Patients

50%

Covered Patients

50%

42

No of Hospital serving JKN vs Non JKN

Revenue by Payer Mix

Embrace Universal Healthcare Coverage (UHC) Implementation

JKN12% Ministry of

Health14.4%

Out of Pocket Patients

34%

Covered Patients

39%

2020P(1)

JKN; 18

Non JKN; 7

NON JKN, 13

Non-JKN 100%

(1) Based on indicative financial numbers(2) Includes patients covered by insurance or corporates(3) For COVID-19 related patients

(1)

Non-JKN 88%

2014

(2)

(3)

Non JKN, 13

Confidential I 43

Continue to Improve Operating Efficiency

• In the process of standardizing procurement of drugs, medical supplies and equipment across all hospitals

– Reduces number of products used in operations resulting in increased efficiency

– Provides deeper relationships and greater bargaining power with limited number of suppliers

Standardized Procurement

• Branched out into telemedicine in light of the pandemic and to better serve outpatient visitors

• Continue to develop an integrated end-to-end hospital information management system

• Integrate various network sub-systems, including data and images, outpatient, laboratory, radiology and others

• Implement a unified database for storage of medical records and other information to reduce costs and improve efficiency

Technology Investments

• To increase the scale of our operations via new hospitals and beds. This will allow us to achieve economies of scale to:

– Gain greater bargaining power in the procurement process

– Enhance the shared services among hospitals

Scale of Operations

• Continue to refine the management of KPIs by dividing work streams into smaller and more detailed tasks with quantifiable goals

• Improve integration of information flow amongst different subsets of KPI management system (e.g. electronic medical record, billing, pharmacy)

• Integrate employee training with lessons learned through KPI records to enhance work quality and internal control

Management Focus

Confidential I

Section 7

Appendix

44

Confidential I

Indonesia Vaccine Roll-out Plan

45

▪ To be completed in 15 months (Mar-22 target) or sooner

▪ Free; fully-funded by government

▪ Four main vaccine candidates

− Sinovac (126mn doses)

− Novavax (50mn doses)

− AstraZeneca (50mn doses)

− Pfizer/BioNTech (50mn doses)(2)

▪ COVAX/GAVI facility could provide up to 108mn doses of free vaccine to Indonesia

▪ Up to 132k healthcare workers have been vaccinated as per 21-Jan

00

05

10

15

20

25

30

35

40

45

50

Jan.21 Feb.21 Mar.21 Apr.21 Mei.21 Jun.21 Jul.21 Agu.21 Sep.21 Okt.21 Nov.21 Des.21 Jan.22 Feb.22 Mar.22

(mn doses)

Sinovac Novavax COVAX/GAVI AstraZeneca Pfizer

Source: Ministry of Health(1) Depending on the safety and efficacy of the vaccine for elderly recipients(2) Under negotiations

Wave 1: Jan 21 - Apr 21

(mn people)Wave II: Apr 21 - Mar 22

(mn people)

1. Medical workers 1.33. Citizens within high-risk zone

63.9

2. Front-liners 17.44. Other public citizens

77.4

Elderly(1) 21.5

Total 40.2 Total 141.3

Wave I + Wave II 181.5

Indonesia Vaccine Roll-out PlanRecipients Priority

Confidential I 46

Thank You

PT Mitra Keluarga Karyasehat Tbk

Jl. Pengasinan, Rawa Semut

Margahayu

Bekasi Timur 17113, Indonesia

Phone : (62 21) 8999 7111

E-mail : [email protected]

[email protected]

Website : www.mitrakeluarga.com

PT Mitra Keluarga Karyasehat Tbk

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