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Investor PresentationJuly 2019
Vision & Milestones
“To be a trusted hospital and medical service network delivering high quality service through the latest innovations that provides the general public an easy access to its service”
1977
Thonburi Hospital started operation
1991
Invested in UbonrakHospital
1993
Opened Thonburi 2 Hospital
1994
Registered as a public company limited
1996
Invested in SirivejHospital
1997
Invested in Dental Siam
2003
Invested in RajyindeeHospital
2009
Invested in Modular Software Expertise
2011
PPP agreement to provide hospital management for Phuket Provincial Hospital
2012
PPP agreement to provide hospital management for Pattaya City Hospital
2014Invested in Thonburi Hospital Heart centers and Premier Home Health Care
2016
Restructure and prepare for IPO
Signed JV for Welly Hospital in China
Registered Capital (THB mn)
20 60 300 600 849
Signed JV for Ar Yu International Hospital in Myanmar
2017
1976 1980 1991 2013 20172
2016
764
2015
PPP agreement for Koh Lan CMU
2018
Grand opening of Thonburi BamrungmuangHospital and ArYu Hospital
Acquired shares for Thonburi ThungsongHospital
2019
THG Businesses
Hospital Business Healthcare Solution Provider Other business
2018 Revenue: THB 6,579 mm (92.7%) 2018 Revenue: THB 492 mm (6.9%) 2018 Revenue: THB 23 mm (0.3%)
Domestic / International Hospital• 7 Hospitals in Thailand• 2 Hospitals overseas
Management Service• 2 Hospitals and 1 Medical Center in
Thailand• MOU for consultancy in Asia
Excellent Center Management Service• 3 Heart Centers under management
Step-Down Care • A rehabilitation center for patients
who do not need close watch from doctors
• Low-tone care for OPD patients
Home Healthcare• Medication services to patient’s
home ex. check up, treatment, rehabilitation
Senior living• Jin Wellbeing County, mixed-use
development to provide services needed by senior
• Thonburi Health Village, to serve various segments
Dental Supplies Retailer & Drug Stores• 10 Drug stores • Exclusive distributor for dental
supplies: 30 brands
Software Development• Develop software to support internal
departments and connect with other networks such as Social Security Office, National Health Security Office, The Comptroller’s General Department
Project Development for Healthcare & Medical Services• Land Pipeline: 1,931 Rai• Book Value: THB 1,811 mm
3
• Higher margin from asset-light model
Welly Hospital
Ar Yu Hospital
2018 2019
Jin Wellbeing County
Hospital & excellence center
management
Growth prospect
Jin Wellbeing County + Thonburi Health Village
Hospital & excellence center
management
Thonburi Bamrungmuang
Domestic hospitals Domestic hospitals
• Strong core business with stable growth
• More Jin’s unit transfer expected after starting in 4Q18
• Expected growth from new opportunities both domestically and internationally
• Started operation on 24 January 2019 • Ready to support international patients
catching medical tourism trend
• Organic growth from volume, price and medical intensity, with capacity expansion
• Potential growth from Thonburi ThungsongHospital, expected to operate in 2H19
• Potential growth from Thonburi BuranaHospital, low-tone care in Jin Wellbeing County facilities
• Ramping up after grand opening• Less shared loss due to more
patients volume
• Soft launch in 3Q18 and grand opening in March 19 with loss shared to THG in first year
• Expected EBITDA breakeven in 2020
Hospital (Thailand) 7Hospital (overseas) 2Hospital Management 2Excellent Center Management 3Network Hospital 9
Hospital Business - overall
• Thonburi Hospital• Thonburi 2 Hospital• Thonburi Bamrungmuang
Sirivej Hospital Chantaburi
Ubonrak Thonburi Hospital
Rajyindee Hospital
Welly Hospital (China)
Ar Yu International Hospital (Myanmar)
Heart Center • Bangplee Hospital • Phatra Hospital• Thonburi 2 Hospital• Phattalung Hospital
Pattaya City Hospital
Phuket Provincial Hospital
5 Key Excellence Centers
Heart Center Women’s Center
Gastrointestinal and Liver Center
Orthopedic Center Neuroscience Center
Hospital Accreditation of Thailand (HA)
ISO
5
Thonburi Thungsong Hospital
Hospital Business – Hospitals in Thailand
• THG has a strong foothold in Bangkok with flagship brand, Thonburi Hospital, trusted by patients for 40 years.
• Upcountry hospitals are in strategic locations with high potential for patient referrals to hospitals in Bangkok.
• This core business has provided stable growth and become a foundation to expand to related business.
6
Location: Bangkok Registered beds: 435 Location: Bangkok Registered beds: 95
Location: ChantaburiRegistered beds: 90
Location: UbonratchathaniRegistered beds: 100
Location: Nakorn SrithammaratRegistered beds: 200
Location: Songkhla Registered beds: 196
Location: Bangkok Registered beds: 147
Hospital Business – Positioning benchmark
Med
ical
so
ph
isti
cati
on
Price per disease
Seco
nd
ary
Tert
iary
Sup
er t
erti
ary
High end
High end, international focused
Prestigious public medical schools
High end, international focused
High end, international focused
Mid to high end hospitals
Mid to lower end hospitals
Lower end, SSO
Thonburi Hospital
Thonburi 2 Hospital
THG has capability and capacity for sophisticated medical services but at more affordable price. 7
Hospital Business – Thonburi and Thonburi 2 Hospital
Strategy
• OPD- Increase and develop excellence centers to meet demand of target group - Thonburi 2 aims to increase capability to provide tertiary care services.- Space management for patients’ convenience and satisfaction- Expand customer base with continuous marketing activities with insurance, corporate and foreign customers.
• IPD- OPD building expansion can draw more patients and potentially turn to IPD admission.- Step-down care can help free up beds to support more complexed cases.
• With our direction to provide more value at affordable price, potential revenue increase should be mainly from more sophisticated treatments.
Thonburi Expansion Plan
Thonburi 2 Expansion Plan
DetailsArea
(sq.m.)Capacity
Completion Year
Total Investment
10 fl car park building
8,820 150 cars 2020 120MB
8 fl OPD building 14,900 50 OPD Rooms 2020 740MB
DetailsArea
(sq.m.)Capacity
Completion Year
Total Investment
3 fl IPD & OPD building
12,00015 OPD Rooms/
52 Beds2020 435MB
8
Thonburi Bamrungmuang Hospital
• Grand opening in Jan 19, with dental, Premium Checkup and Diabetic Wound Care centers
• IVF has just started in May 2019.
• OPD pay per bill: approx. THB5,000
• IPD pay per bed day: >THB30,000
9
Thonburi Thungsong Hospital Project
10
Details
Location Tungson-Wiangsa Highway, Nakorn Sri Tammarat
Positioning Secondary care
Target Elderly, middle class, insurance client, ER patients
Registered beds 200 beds
Progress > 50%
Expected operations In 2019
As of 7 November 2018, THG holds 51.12% directly and 5.31% indirectly via Rajyindee Hospital. Total shares held are
56.43% of THB600mn registered capital of Thanarad Thungsong. Total investment is THB307mn.
Hospital Business – International hospitals
Strategy for investment in international market
• Selective increase in market with promising growth potential
• Leverage on strong partners
• Start from initial partnership, small investment or management contract until proven success
Welly hospital
Location: Wei Hai, Shandong region
Project: 130-available-bed private hospital
in an area mostly populated by state
hospital
Grand opening in 4Q17
Partner: THG 58%, WEGO 42%
Leading manufacturer of medical devices in
China
Ar Yu International Hospital
Location: Yangon, Myanmar
Project: 200-bed private hospital which
is the first with international standard
Partners: GMP 50%, THG to be 40%,
AMS 10%
- Ga Mone Pwint: Leader in brand
developer, property & real estate, hotel,
retail, and trading business in Myanmar
- Aryu Ananta Medical Services: A group
of leading local doctors
Asia Continent
11
1Q18 1Q19
1Q18 1Q191Q18 1Q19
OPD Revenue IPD Revenue
Welly Hospital• The hospital is ramping up patient volume and revenue, aiming for EBITDA break even in 2019.
• OPD patients are approx. 200/day and IPD are approx. 70/day.
• Welly Hospital continues to develop service standard with expertise, knowledge sharing and service training from THG.
Revenue OPD sequences
IPD bed days
12
• The grand opening was on 17 March 19 for full service.
• Started IPD service (initially 23 beds) on 7 February 19
• Cardio, Wellness and Ortho are popular centers with experienced and well-known medical team.
• Prepare for Thai doctors to visit patients in Myanmar.
Ar Yu International Hospital
13
Key success factors:
• Modern facilities and equipment
• well-known Myanmar medical staff
• Thai hospitality service standard
• patient safety focused and gear for JCI
Ar Yu International Hospital
14
OR
Lift lobby
Domestic
‘Asset-light model’• No CAPEX – High ROE/ROA• Stable revenue stream• THG responsible for cost management • Current net profit margin >10%
• THG diversifies into consulting & management services by establishing management team and providing efficient medical services for public hospitals.
• THG is the first private hospital to enter into Public – Private Co-operation agreement with Ministry of Interior and Ministry of Public Health, aiming to bridge the gap between public and private hospitals’ healthcare standards.
Locations• Pattaya City Hospital • Central Medical Unit (CMU) (Kohlan)• Phuket Provincial Hospital
Hospital Business – Hospital Management
InternationalStrategy
• Strategic Increase – Using asset-light model that enhance ROE and ROA
• Focus on Asian region – markets in CLMV
• Tap into markets where level of medical sophistication offered by local hospitals are insufficient for local demand
• Cater services to suit requirements: e.g. consultancy, staff training, comprehensive study, feasibility study
Revenue from hospital management (MB)
Overseas contracts generated growth in 2017 and they expired causing decrease in 2018.
15
378 440
503
598
494
2014 2015 2016 2017 2018
0.4 58
130
216
276
2014 2015 2016 2017 2018
Heart Center
Hospital Business – Excellence Center Mgt
Bangplee Hospital* Phatra Hospital Thonburi 2 Patalung Hospital
Type of Hospital • Public Hospital • Private Hospital • Private Hospital • Public Hospital
Medical Equipment Investment
• THG’s Investment • Co Investment • THG’s Investment • THG’s Investment
Revenue from heart center (MB)
2018 growth was mainly from new sites.
THG serves both private and public hospitals by providing highly skilled cardiologists, medical staffs and advanced machines which will allow heart patients to get access to high quality care at lower price.
16* Contract at Bangplee expired at the end of 2018
Healthcare Solutions Provider Business
Home healthcare
Dental supplies & drug stores
Senior care and senior living
• Basic treatment: medication dispensing and delivery, health evaluation, vaccination, counseling
• Skilled nurse service: wound care, post-surgery care, pain management, fall prevention• Physical therapy service: for orthopedic patients, for neurological disorders, cardio-
pulmonary rehab• Service for new mom: ultrasound for blocked milk ducts• Standard hospital-accredited housekeeping (Premiere Healthy Clean): allergy and dust
mites specialists
Healthcare mixed use development comprises of
• Active Living, with medical staff, 24-hour emergency aid and Centralized Health Monitor System
• Thonburi Burana Hospital low-tone care for elderly who need special care• Wellness Center for physical rehabilitation and health activities
• Dental Siam: one-stop service dental supplies shop• Apex: drug stores with 10 branches in shopping malls
17
Jin Wellbeing County
• Key differentiation is comprehensive medical service with expertise from Thonburi Hospital.
• With growing senior population in Thailand, the project can become a big community with potential of recurring income from residents.
• Comprising active living, rehab hospital and wellness center
18
• Best Senior Living Development • Highly Commended for Best
Universal Design Development from Property Guru Thailand Property Award 2018
Jin Wellbeing County – Jin Residence
19
• 494 units in 5 low-rise buildings for first two clusters
• One-bedroom and two-bedroom
layouts at 85,000–120,000 baht/m2
• 43 and 63 Sq.M. at THB4-6mn
• Tracking system , 24/7 emergency
service and safety facilities
Jin Wellbeing County – Thonburi Burana Hospital
20
Patient room
Reception area
Thonburi Burana Hospital
• Low-tone hospital for elderly who need special care,
such as chronic patients, Alzheimer etc.
• 54 beds to operate in 1st phase
• IPD rooms, OPD clinics, medical staff, services from
physical therapist, dieticians and psychologists
• Expect operation in 3Q19
Jin Wellbeing County – Jin Wellness Institute
21
Jin Wellness Institute – Ready to 4Q19
Two 5-story buildings: 5,685 Sq.M. and 8,058 Sq.M. comprising
1. Integrative Wellness Clinic and Medical Spa – for customized health plan
2. Jin MediFit – Gym with professional instruction
3. Life Enrichment – activities for mind and emotional balance
Activity room
Cooking studio
Restaurant
4. Learning activities – Art & music therapy, cooking etc.
5. Nutrition and meal plan – customized healthy meals
Jin Wellbeing County - progressCluster 1
Cluster 2
Thonburi Burana Hospital
Jin Wellness Institute2019target
200 unit transfer
146 units sold
83 units transferred since 4Q18
63 units backlog
Jin Wellbeing County – Business model
23
Integrated senior solutions and community
Services
• Freehold• Yield guaranteed
5% for 3 years• 30-year leasehold• Active living rental
• Thonburi Burana Hospital• Jin Wellness• Assisted living service
(daily/ weekly/ monthly)
Assets
Thonburi Senior Home Jin Wellbeing County Thonburi Health Village
Medical services Advanced Standard
Service technology Advanced Standard
Target group Medium - high Medium
Design for elderly/patients Well supported Well supported
Location North of Bangkok West of Bangkok
Price per square meter 85,000 -120,000 baht 60,000 baht
Price per unitApprox. 4-6 mn baht
(43 and 63 Sq.M.)1.9 mn baht(32 Sq.M.)
Thonburi Senior Home – Comparison
24
Thonburi Health Village – Pracha Uthit
Swimming pool & Wellness Center
Investment value THB700mn
Land area 8 rai (4 rai for 1st phase)
Number of units 412
GFA 26,000 Sq.M
SFA 13,824 Sq.M.
Expected date of completion End of 2019
25
Other supporting business
Software Development
Project development for healthcare/ medical service
Thonburi Realty Development Company Ltd. and Rajthanee Realty Company Ltd. develop projects related to medication for future project under group, for example senior living home and step-down care
Company Location Area Book value
Thonburi Realty Development Co., Ltd. Ratchaburi 1,550 rai THB 344.4 mn
Rajthanee Realty Co., Ltd. Surat-thani (Koh Samui) 381 rai THB 1,467.3 mn
Modular Software Expertise Co., Ltd. (MSE), one of Thailand's leading Hospital Information System (HIS) provider with experienced IT team and healthcare management professionals
• Hospital Information Management System (HIMS)
• Goods Management and Distribution System (GMDS)
• Retail Store Information Management System (RIMS)
• Car Park Management System (CPMS)
within THG Group
Outside THG
Customer Group
26
Project timeline expectation
1Q19 2Q19 3Q19 4Q19 2020
Hospital expansionConstruction Capacity increase
Welly Hospital
Ar Yu International
Hospital
EBITDA breakeven
Thonburi Bamrungmuang
Hospital
Jin Wellbeing County
Thonburi Health Village
Ramp up EBITDA breakeven
Grand Opening
EBITDA breakeven
Unit transfer and revenue recognition
Construction Unit transfer and revenue recognition
EBITDA breakeven
Grand Opening
Investment highlights
28
Investment highlights
Strong positioning in Bangkok with diversification to strategic locations upcountry
Extensive Medical Resources and Network
Diversify revenue mix
Strong growth potential
- Well trusted due to its 40-year-old brand and track record of quality medical services
- Best value in providing sophisticated medical services at affordable price
- TH1 proximity to top medical school provides benefit to retain specialized doctors and nurses - 17 Network hospitals allow THG to capture benefits from cost control and client referral
- Hospital business maintains a strong core, plus future revenue from new businesses and from overseas.
- Expand into full-coverage medical businesses with innovative healthcare services
- Early mover towards integrated healthcare provider, including wellness and aged care
- Jin Wellbeing County and Thonburi BumrungMuang projects as brown field for growth drivers
29
Financial information
30
6 2 8 7 3 83 101 97 211 218
1,594 1,572 1,749
1,665 1,651
1Q18 2Q18 3Q18 4Q18 1Q19
Others Healthcare solution provider Medical service
1Q19 Financial Performance
Total revenue (mn THB)
+11.2% YoY
1,683
Medical service
+3.6% YoY
• Revenue growth in 1Q19 was mainly from sales of Jin Wellbeing County.
• However, slower growth was because of revenue decrease in overseas advisory business.
31
1,6751,854 1,883 1,872
1Q19 Financial Performance
Gross profit (mn THB) -6.5% YoY
EBITDA (mn THB)
Net profit-parent (mn THB)
-46.0% YoY
-94.9% YoY
32
478 430 517 485 447
28.4% 25.7% 27.9% 25.8% 23.9%
1Q18 2Q18 3Q18 4Q18 1Q19
Gross Profit GP Margin
348 249 300
197 188
20.7%14.9% 16.2%
10.5% 10.0%
1Q18 2Q18 3Q18 4Q18 1Q19
EBITDA EBITDA Margin
158
72 96 22 8
9.4%4.3% 5.2%
1.2% 0.4%
1Q18 2Q18 3Q18 4Q18 1Q19
Net Profit -Parent NP Margin
-29.6% YoY ex. special items in 1Q18
-91.4% YoY ex. special items in 1Q18
267 188
81
1Q18 1Q19
EBITDA Special profit
93 8
65
1Q18 1Q19
Net Profit -Parent Special profit
1Q19 Operational statistics – TH1, TH2, RYD
Revenue mix – OPD vs IPD Revenue breakdown by payors – 1Q19
OPD utilization IPD utilization
33
46% 46% 45% 44% 45%
54% 54% 55% 56% 55%
1Q18 2Q18 3Q18 4Q18 1Q19
% OPD Revenue % IPD Revenue
71%
21%
7%
1%
Self pay Insurance Corporate Others
61% 60%64%
58% 59%
1Q18 2Q18 3Q18 4Q18 1Q19
68%
61%
72%
68%65%
1Q18 2Q18 3Q18 4Q18 1Q19
1Q18 2Q18 3Q18 4Q18 1Q19
TH1 TH2 RYD
1Q18 2Q18 3Q18 4Q18 1Q19
TH1 TH2 RYD
Pay per sequence (baht) Pay per bed day (baht)
OPD sequence (‘000 sequences) IPD occupancy (‘000 bed days)
34
260
39
258
1Q19 Operational statistics – TH1, TH2, RYD
+3.6% YoY +3.6% YoY
-3.1% YoY -1.9% YoY
Approx. THB3,000 for TH1 and THB1,700-1,900 for RYD and TH2 Approx. THB19,000 – 23,000 for TH2 and TH1, and THB12,000 for RYD
278
3543
257
41
252
38
2,459 2,452 2,501 2,523 2,546
1Q18 2Q18 3Q18 4Q18 1Q19
19,609 21,259
20,241 19,925 20,316
1Q18 2Q18 3Q18 4Q18 1Q19
21%
20%59%
28%
18%
54%
1Q19 IBD Interest2018 IBD Interest
1Q19 Capital management
Gearing ratio Interest coverage ratio (x)
Capital structure (mn Baht) Dividend
On 26 Apr 19, AGM approved dividend payment for 2018 performance at
THB 0.35/share = 85.5% payout ratio
Subject to AGM approval
Dividend policy: not less than 40% of net profit
Equity
LT loan
1Q19
4Q18
IBD/EBITDA (x)
D/E (x)
35
ST Loan
DSCR ratio (x)
3,052
3,144
144
4Q18
4,505
2,857
43
1.00.6
1.1 1.1
3.6 3.2
5.7
7.9
2016 2017 2018 1Q19
5.0 5.3 4.4
2.9
2016 2017 2018 1Q19
1.6
4.4
2.0 1.4
2016 2017 2018 1Q19
CapEx Plan
CapEx (MB)
Project 2018 2019E 2020E 3 Yr
Thonburi Hospital - 500 850 1,350
Thonburi 2 Hospital - 300 340 640
Thonburi Bamrungmuang 750 1,050 100 1,900
Jin Wellbeing County 1,000 900 - 1,900
Thonburi Health Village 300 100 280 680
Total 2,050 2,850 1,570
Appendix
37
Group structureCompany Structure
Vanasin Family Other shareholders
Thonburi Healthcare Group PLCRegistered capital THB 849 mnPaid-up capital THB 764 mn
Rajyindee Hospital PLC
Ubonrak Hospital Co. Ltd.
Uttaradit Thonburi Hospital Co. Ltd.
Thonburi Hospital Heart Centers Co. Ltd.
Weihai Thonburi Healthcare
Investment Co. Ltd.
Hospital Business
Other related Business
Dental Siam Co. Ltd.Modular Software Expertise Co. Ltd.
Rajthanee Realty Co. Ltd.
Thonburi Wellbeing Co.,Ltd.
Thonburi Realty Development Co. Ltd.
Other investments
Pre IPO
Shareholding structure
Vanasin family31.5%
Unnanuntana Family 7.7%
Meksawan family 4.3%
Other shareholders
56.6%
Vanasin family28.3%
Unnanuntana Family 6.9%
Meksawan family 3.9%
Other shareholders
50.9%
IPO portion10.0%
28.3% 71.7%
55.9%31.9% 34.0% 99.9%
99.9% 58.0%
99.4% 70.0% 100.0% 99.8%
99.9%
Post IPO
Remark: Uttaradit Thonburi Hospital Co., Ltd. is a dormant subsidiary of THG.
Aryu International Health Care Co. Ltd.*
40.0%
38
99.9%
ThanaradThungsong Co. Ltd.
56.4%
SirivejHospital PLC
Thonburi BamrungmuangHospital Co. Ltd.
THG’s hospitals
InternationalUpcountry Area
Thonburi (TH1)Thonburi 2
(TH2)Rajyindee Ubonrak Sirivej Welly Ar Yu
Year Operated 1977 1993 1995 1991 1992 2016 2018
LocationBangkok Bangkok Songkla Ubon Chantaburi Shandong Yangon
Registered bed 435 95 196 100 90 150 200
Available bed 486 339 130 150
Doctors 534 203 140 92 88 72 20
Medical Staff 527 169 230 190 157 108 150
Certification HA HA / ISO HA HA - - N/A
Bangkok Area
39As of 31 July 2018
For more information, please contact IR department.
Email: [email protected]
Tel: +6695-3705728
“Lifetime health guardian for all”
Thonburi Healthcare Group Public Company Limited (“THG”), and affiliates, are pleased to provide this presentation which is intended for discussion purposes only. Although
the information provided herein is believed to be reliable, THG makes no representation as to the accuracy or completeness of such information or otherwise provided by THG.
Prior to acting on any information contained herein, the receiver should determine the risks and merits, including legal, tax, and accounting characterizations and
consequences, without reliance on THG. This presentation and the contents of any document relating thereto are proprietary to THG and may not be reproduced or otherwise
disseminated in whole or in part without THG’s prior written consent.
This presentation is not intended to provide the basis for any investment decision, nor to substitute your own analysis and investigation, and should not be considered as a
recommendation to any recipient of this presentation. Some statements made in this presentation are forward-looking statements, which are subject to various risks and
uncertainties. These include statements with respect to THG’s corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be
identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend” , “estimate”, “continue” “plan” or other similar words. The
statements are based on the assumptions and beliefs of THG’s management in light of the information currently available to THG. These assumptions involve risks and
uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Nothing in this presentation is, or should be relied on as promise or representation of THG as to the future.
