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PG.1
Bumrungrad Hospital Public Company Limited
Investor Presentation
August 2012
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
• 538 licensed inpatient beds and over 4,500 outpatient visit capacity per day
• Thailand’s leading tertiary medical center
o Accreditation
• 1st hospital in Asia to receive US JCI Accreditation, with additional certifications in disease specific categories
• 1st private hospital in Thailand with Thai Hospital Accreditation
o Patients
• Over one million patient episodes annually
• Over 460,000 international patient episodes annually from over 200 countries
o Services
• 35 Clinics centers
BHPCL, an early mover in medical tourism, is an international leader in combining clinical quality with customer service oriented patient care
As of 29 June, 2012
Bangkok Bank Pcl., 0.26% Sinsuptawee
AM, 8.66% Bangkok
Insurance Pcl. , 14.61%
Thai NVDR,
2.32%
Bangkok Dusit
Medical Services
Pcl., 23.88%
UOB Kay Hian
(HK) - Client
Account , 8.28%
Others, 41.99%
Shareholding Structure
PG.5
Realignment of the Corporate Structure
No active operation
Bumrungrad International Ltd.
(“BIL”)
Comprehensive wellness center specializing in preventive care
Vitallife Corporation Ltd.
31.5% 100.0%
Asia Global Research Co., Ltd.
51.0%
Bumrungrad Medical Center Ltd.
(“BMC”)
Clinical research
100.0%
Operates Bumrungrad International Hospital, Bangkok
Bumrungrad Hospital Public Company Limited
(“BHPCL”)
No active operation
• Divestment of all KH shares on 10 July 2012.
• BIL ceased its operating activity.
BIL Capital Reductions
PG.6
BH - Management Team
BH’s management team comprises individuals with extensive experience in healthcare management
K. Linda Lisahapanya Managing Director
Dr. Sinn Anuras Group Medical Director
Mr. Dennis Brown Corporate CEO
Mr. Mack Banner CEO
Bumrungrad International, Bangkok
Mr. Dennis Brown CEO
Bumrungrad International Ltd.
“ Vacant ” CEO
Asia Global Research Co., Ltd.
Mr. Anthony Tan CEO
Vitallife Corporation Ltd.
PG.7
Doctors & Nurses
• Leading medical staff provides first tier clinical quality and customer-oriented patient care
• 35 Clinics centers
• Over 1,200 experienced doctors, of which over 320 are US, UK or Australian Board certified
• Over 900 dedicated nurses
PG.8
Medical Tourism
Thailand • Skilled medical staff
• Affordable wage levels
• Warm and efficient service culture
• Focus on patient preferences with a “self-pay” market
• Significant general tourism activity with global appeal
• Regulations and attitudes supporting private healthcare
Bumrungrad International
• First tier medical staff
• Transparency for inquiries
and patient cost estimation
• Premium customer-focused
patient experience
• Expansive service
infrastructure with overseas
referral offices, translators
and other services
PG.9
Premium Inpatient Facilities
Customer-oriented patient service culture supported by hotel-like ambience in a warm and restful environment
PG.10
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.11
Overview
Strategy
Operational Update
Financial Performance
Associated Companies
Agenda
PG.12
Strategy
• Campus Expansion
• Doctor Recruitment
Bumrungrad International
Hospital
• Expand in our existing market segment – 2nd Campus
• Expand into a new market segment – 2nd Brand
Metro Bangkok
• Review of selective opportunities International
PG.13
Campus Expansion
• Move off campus into leased office space Back office
• Open 5 floors in Bumrungrad International Clinic
• Expand clinics in Bumrungrad International Hospital Clinics
• Add 44 ICU beds and 61 ward beds in Bumrungrad International Hospital building
• Expand ancillary services Inpatient
• Bought 7,965 sq. meters of land on Petchburi Road.
• Capability to construct 150 – 200 bed hospital
Bumrungrad International – 2nd
Campus
• Determine alternatives for employee housing
• Determine alternatives for office space
Acquire Additional Capacity
Est. Capital Investment (Million THB)
Y11 Y12 Y13 Y14 Y15 Y16 Y17 Total
643 892 1,811 625 514 2,234 120 6,839
PG.14
Overview
Strategy
Operational Update
Financial Performance
Associated Companies
Agenda
PG.15
Overall Volume Trend
Outpatient volumes increased in 2Q12
compared with 2Q11, primarily due to strong
growth in international markets. While
inpatient admissions for 2Q12 approximated
those of 2Q11, inpatient days increased due
to a longer average length of stay from
higher acuity cases.
81
64
88
77 83 80
88
70
83 80 87
80
0
50
100
1Q 2Q 3Q 4Q 1Q 2Q
2010 2011 2012
2.4%
Admissions
Average Admissions per Day
0.2% 4.9%
9.3%
2,759
2,313
2,889 2,759
2,837 2,877
3,030
2,460
2,837 2,877
2,971 3,007
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1Q 2Q 3Q 4Q 1Q 2Q
2010 2011 2012
2.8% Visits
Average Visits per Day
4.9% 4.7% 10.8%
355
305
359
322 347 349
377
329 347 349
376 372
0
50
100
150
200
250
300
350
400
1Q 2Q 3Q 4Q 1Q 2Q
2010 2011 2012
14.4% 2.4%
ADC
Average Daily Census
4.9% 2.2%
24.4%
25.7%
8.4%
4.5%
0.3%
6.7%
PG.16
Revenue per unit of service reflects a 3.3% increase from the annual price adjustment. The remaining amount is revenue intensity or increased consumption:
OPD revenue intensity per visit
increased 5.7% in 2Q12.
IPD revenue intensity per admission increased 9.8% in 2Q12 from increased length of stay.
Revenue Intensity
5,671 5,538 5,465 5,737
5,976 5,993 6,012 5,983 5,976 5,993
6,471 6,534
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1Q 2Q 3Q 4Q 1Q 2Q
2010 2011 2012
5.4%
Bt
Revenue per Visit
10.0% 4.3% 8.2% 8.3%
192,850
213,041
172,044 181,528
199,321 205,814 204,098
217,925
199,321 205,814
217,246 232,823
0
50,000
100,000
150,000
200,000
250,000
1Q 2Q 3Q 4Q 1Q 2Q
2010 2011 2012
3.4%
Bt
Revenue per Admission
18.6% 20.1% 9.0%
3.4%
9.0%
13.1%
PG.17
Volume Contribution by Nationality
Revenue Contribution by Nationality
International Breakdown
• For 2Q12, international revenue was up 17.3%
from 2Q11, primarily from revenue intensity.
• Top 5 revenue contribution countries (1H12)
45% 45% 45% 41% 47%
46%
55% 55% 55% 59% 53% 54%
0%
20%
40%
60%
80%
100%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
% o
f V
olu
me
International Thais
56%59%60% 63%61%61%
44%41%39% 39% 37%40%
0%
20%
40%
60%
80%
100%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
% o
f R
ev
en
ue
International Thais
UAE 9%
USA 6%
Myanmar 5%
Oman 5%
Kuwait 4%
PG.18
Revenue Breakdown
Inpatient vs. Outpatient (% of revenue) Method of Payment (% of revenue)
YTD Jun12
• Revenue contribution for outpatient and inpatient services mostly in line with historical amount.
• 2Q12 Revenue growth:
Outpatient revenue increased by 14.0% y-o-y
Inpatient revenue increased by 12.8% y-o-y
• Self-pay remains the primary method of payment
51% 51% 50% 49% 50% 51%
49%49% 49% 50% 51% 50%
0%
25%
50%
75%
100%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Outpatient
Inpatient
Corporate Contracts - Domestic
10% Corporate
Contracts - Intl 8%
Self-pay 70%
Insurance 12%
PG.19
Agenda
Overview
Strategy
Operational Update
Financial Performance
Associated Companies
PG.20
Operating Performance 2007-2011 Total Revenues
Profit
EBITDA
2,070 2,1552,259
2,450
2,819
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2007 2008 2009 2010 2011
EB
ITD
A (
TH
B m
m)
8% CAGR
829
8,559
8,8829,338
10,05611,306
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2007 2008 2009 2010 2011
To
tal R
even
ues (
TH
B m
m)
7% CAGR
458631,191
1,145
1,246
1,258
1,555
33
0
500
1,000
1,500
2,000
2007* 2008 2009 2010** 2011***
Pro
fit
(TH
B m
m)
8% CAGR
DILUTED EPS
1.29
1.37 1.44
1.521.790.56 0.07
0.04
0.0
0.5
1.0
1.5
2.0
2007 2008 2009 2010 2011
Dilu
ted
EP
S (
TH
B)
9% CAGR
* One-time profit of THB 458 million in 2007 was share of profit in investment in GCS Thailand,
netted off with impairment of hospital software system
** 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
9,388
BH reported a one-time gain on share of profit in investment in CDE Trading (previously GCS
Thailand) in 2007 of THB 829 million, mainly from sale of GCS Thailand’s assets
1,603 1.85 1.83
1,321
1,588
1.45
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.
PG.21
Margins & Trend
Margins have been strong and relatively stable over time
Net Profit Margin Trend
12.5%13.9%13.3%13.3%
17.1%
0%
10%
20%
30%
2007* 2008 2009 2010 2011
*Net margin in 2007 includes the benefit of one-time non-operating items
EBITDA Margin Trend
25.0%24.4%24.2%24.2% 24.3%
0%
10%
20%
30%
2007 2008 2009 2010 2011
PG.22
1H12 Update
1,506
1,724
26.7% 26.6%
0%
10%
20%
30%
40%
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1H11 1H12
EBITDA EBITDA Margin
Total Revenues
5,653
6,502
5,200
5,400
5,600
5,800
6,000
6,200
6,400
6,600
1H11 1H12
EBITDA
Net Profit
THB million THB million
As a result of the revenue growth and the statutory corporate income tax rate reduction, offset somewhat by additional expenses relative to the minimum wage adjustment, net profit increased by 42.5% in 1H12 from the same period in the prior year. Net profit margin improved from 13.4% in 1H11 to 16.4% in 1H12.
15.0% 14.4%
760
1,083
13.4%
16.4%
0
200
400
600
800
1,000
1,200
1H11 1H12 . .5%
10%
15%
20%
25%
30%
Net Profit Net Profit Margin
THB million 33.7%
42.5%
810
1,083
14.3%16.4%
0
200
400
600
800
1,000
1,200
1H11* 1H125%
10%
15%
20%
25%
30%
*Excluded an extraordinary item
PG.23
Leverage
0.6
0.4
1.3
0.8
0.70.6
0.00
0.50
1.00
1.50
2007 2008 2009 2010 2011 1H12
0.2
0.2
0.6
0.4
0.30.3
0.00
0.20
0.40
0.60
2007 2008 2009 2010 2011 1H12
x Interest Coverage
18.7 18.8
24.8
35.9
14.9 14.4
0
10
20
30
40
2007 2008 2009 2010 2011 1H12
x
Net Debt to EBITDA
x
Net Debt to Equity
x
*
•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 would be 12.9x
• Net debt to EBITDA and Net debt to equity for 1H12 all improved from 2011. The improvements were the direct result of the strong operating results and cash collections, providing the significant increase in Cash and cash equivalents.
• Interest coverage ratio for 1H12 decreased slightly from 2011. If we assumed full year impact on interest expense from Kasemrad investment in 2011, interest coverage ratio improved from 12.9 in 2011 to 14.4 in 1H12.
PG.24
Dividend Payment
0.60
0.450.400.400.400.40
0.40 0.40 0.45 0.50
0.65
0.00
0.20
0.40
0.60
0.80
1.00
2007 2008 2009 2010 2011 2012
Final
Interim
Bt per share
49.0%50.0% 49.0% 49.8% 52.0% 50.6%
0%
20%
40%
60%
80%
2006 2007* 2008 2009 2010 2011
Margin have been strong and relatively stable, with recent improvement in EBITDA margin
0.80 0.80 0.90
0.85
* Net profit used to calculate the dividend payout ratio in 2007 is:
2007 net profit Baht 1,605 million
-share gain from GCS - Baht 829 million
-+ dividend received from GCS + Baht 418 million
= Net profit for dividend payment Baht 1,195 million
1.10
Dividend Payment
Payout Ratio
PG.25
Agenda
Overview
Strategy
Operational Update
Financial Performance
Associated Companies
PG.26
• KH Acquisition Date: 18 March 2011
• BH Invesment % : 24.99%
• BH recognized share of KH’s income in 1H12, following the investment in March 2011, is set out in the table below.
* The Company did not recognize the share of income of Baht 3.6 million from Kasemrad Hospital Group in 1Q11, as the acquisition occurred during the last few days of 1Q11
Kasemrad Hospital Group (KH)
(Unit: Thousand Baht) 1H12 1H11*
Share of income from KH 111,286 43,541
Depreciation for fixed assets revaluation (4,227) -
Share of income from KH -net 107,059 43,541
Consulting fee for KH loan - (4,141)
Interest expenses (82,633) (36,189)
Amortization of bond issuance cost (2,001) -
Decrease in corporate income tax 19,006 12,099
Net income/(loss) from KH 41,430 15,310
PG.27
• The KH shares were divested given the favorable market valuation which provided an opportunity for an attractive return and the potential to deploy capital for alternative uses.
• THB 4.564 billion in gross proceeds received from the share sale.
• Consolidated pretax gain on sale of THB 789.8 million after applicable transaction costs.
• Estimated Net Gain on sale (Equity Basis) of approximately THB 579 million.
• Cumulative Gross ROI was 31.4% & Annualized pretax IRR was 20.5%.
KH-Divestment
Results from KH-Divestment
Gross Sales Proceeds THB 4,564 million
Consolidated pretax gain THB 789.8 million
Estimated Net Gain on sale -Equity Basis THB 579 million
Cumulative Gross ROI 31.4%
Annualized pretax IRR 20.5%