Bangkok Dusit Medical Services (BDMS) Investor Presentation 4Q16 & 2016 Results March 2017
Important Notice 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 share in Bangkok Dusit Medical Services Public Company Limited (“BDMS” and shares in BDMS, ”shares”) in any jurisdiction nor should it or any part of it from the basis of , or be relied upon in any connection with, any contract or commitment whatsoever. This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which BDMS operates and general achievement of BDMS business forecasts, which will cause the actual results, performance or achievements of BDMS to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. This presentation has been prepared by the BDMS. 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 BDMS or any of its agents or advisors or any of their respective affiliates, advisors or representatives, shall have any liability ( in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws. 2
Contents Overview Healthcare Industry Operational Statistics Financial Highlights 3
Overview 4 4
BDMS Overview Established on February 26, 1972 Largest private hospital operator in Thailand in terms of revenues from patient services and market capitalization Owns and manages 44 hospitals (with total beds* of 7,865) under 6 hospital brands: Brand No. of Hospitals No. of Beds* Bangkok Hospital 20 3,136 Phyathai Hospital 5 1,340 Samitivej Hospital 5 1,229 Paolo Hospital 5 960 BNH Hospital 1 144 Royal Hospital 2 130 Local Hospital 6 926 * Maximum number of beds according to structure of the hospitals 5
Diversification of Patient Mix Target Patients / Purchasing Power Social Security Middle-Income High-Income International Patients Patients Patients Patients Secondary Medical Sophistication Tertiary Super Tertiary 6
Shareholding Structure As of 30 January 2017 % of Shareholding 1 Mr. Prasert Prasarttong-Osoth, M.D. and family 23.4% 2 Mr. Wichai Thongtang and family 8.4% 3 Bangkok Airways* 7.8% 4 The Viriyah Insurance Co., Ltd. 6.1% 5 Thai NVDR Co., Ltd. 3.7% 6 State Street Bank Europe Limited 3.1% 7 Mr. Chirotchana Suchato, M.D. and family 2.7% 8 Social Security Office 2.4% 9 Ladpli family** 2.3% 10 Mr. Chuladej Yossundharakul, M.D. and family 1.9% Total 61.8% Source: Summary of the information from Thailand Securities Depository Company Limited (TSD) * Consisted of Bangkok Airways PCL and Bangkok Airways Holding Co., Ltd ** Consisted of Miss Noppamas Ladpli, Mrs. Atinuch Malakul Na Ayudhaya and Mr. Parameth Ladpli 7
Successful Track Record of Expansion Through M&A and Greenfield Projects Strong Share Price Performance Backed by a Successful Expansion Track Record Share Price 2015 2017 (THB) • Muang Petch 2006 2011 • Paolo Kaset 30 • Sri-Rayong • Increase in stake of Bangkok • Bangkok Hua Hin 2004 • Dibuk Pattaya, Bangkok Chanthaburi • Bangkok Pakchong • Bangkok Heart • Samitivej Chonburi and Samitivej Sriracha 25 • Bangkok Samui • Health Network (8 • Muangraj (became subsidiaries) 43 44 Phyathai & Paolo • Bangkok Phuket • Bangkok Ratchasima 2012 hospitals ) • Samitivej Sukhumvit and 42 20 • Bangkok Udon Samitivej Srinakarin 2016 • Paolo Rangsit 37 2014 31 15 2007 2005 • Bangkok Chiangmai • Royal Angkor International • BNH • Royal Phnom Penh (Cambodia) (Cambodia) 10 • Wattanosoth 29 • Bangkok Chinatown • Royal Rattanak (Cambodia) * • Bangkok Khon Kaen 2013 28 5 • Samitivej Thonburi 18 • Sanamchan & Thepakorn 16 • Bangkok Phitsanulok 12 • Phuket International 10 0 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Green font indicates Greenfield projects Brown font indicates acquisitions Number of hospitals in the network post-acquisition # * Transfer of business to our new facility, Royal Phnom Penh Solid Revenue Growth Over the Past Decade (2004-2015 CAGR of 24.7%) with Resilient EBITDA margin Total Revenue (THB mm) and EBITDA margin (%) 22.4% 23.4% 23.3% 23.1% 23.1% 23.1% 23.2% 22.9% 22.1% 21.3% 25% 21.4% 20.6% 18.4% 20% 15% 10,724 5,635 15,981 18,885 21,652 21,974 24,051 37,371 47,862 51,407 56,607 63,655 68,844 10% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Derived from BDMS’ financial statements BDMS has developed 13 new hospitals and acquired a total of 30 hospitals to date 8
‘Hub -and- Spoke‘ Model Providing a Proven Patient Referral System and Creating Efficiency Through Scale Clinics / Medical Spoke Diagnostics Referral patients Doctors Referral Patients patients Hub (Super Tertiary / Tertiary) Nurses Referral patients Spoke Medical Referral Spoke equipment patients 1 Strong patient referral system within and across each hub and spoke 2 Enhances synergies and benefits of scale among hospitals within the group Shared supporting services among multiple hubs which enhance efficiency and competitiveness 3 4 Established system provides a platform for future expansion 9
BDMS Complete Continuum of Healthcare Centers of Excellence Super Tertiary Care Tertiary Care Secondary Care Early Promotive Preventive Curative Transitional Rehabilitative Detection BDMS Wellness Clinic Chiva Transitional Care Hospital 10
BDMS Centers of Excellence Network Upgrading Existing 9 Hospitals to Become Centers of Excellence with the Focus on International Patients 9 Bangkok Chiangmai 8 Bangkok Udon Bangkok Headquarter 1 BDMS Medical CoE (Phoenix) 2 Samitivej Sukhumvit Royal Phnom Penh 7 3 Samitivej Srinakarin 4 Phyathai 2 6 Bangkok Pattaya 5 Bangkok Phuket 11
Medical Cooperation International and Local Partnership Sister Institute with MD Anderson Cancer on cancer Occupational Collaboration with Oregon Health and Science health, Pediatrics, University on occupational health, pediatrics, Rehabilitation and rehabilitation, clinical simulation and informatics Informatics Collaboration with Missouri Orthopaedic Institute, University of Missouri Health Care in education, training and research Collaboration with Hannover Medical School for Trauma and education and research on trauma and Orthopedics orthopedics Collaboration with Stanford University for knowledge sharing on orthopedics 12
Medical Cooperation International and Local Partnership Research collaboration with Department of Neurosurgery, Cedars-Sinai on the TRFS laser device for brain tumor surgery Neuroscience Collaboration with Black Brain Health Center of Dr. Keith L. Black, one of the world leading neurosurgeons Collaboration with Sano Hospital on Gastrointestinal Gastrointestinal Medicine Collaboration with Nagoya University for education, medical treatment assistance and patient referral Others Collaboration with local institutions 13
BDMS Wellness Clinic A Brand New Wellness Clinic Delivering World-Class Services Acquiring 15 rai of land and 3 buildings in the northern part of the Park Nai Lert (Heart of Bangkok) for THB 10,800 mm and plan for renovation Capex of THB 2,000 mm Providing premium comprehensive wellness & preventive healthcare services Targeting high-end Thai and International customers Timeline 2 3 1 Sep 2016 Paid THB 1,080 mm for deposit Feb 2017 Paid THB 2,000 mm and accepted the transfer of ownership May 2017 Will pay the rest of THB 7,720 mm Park Nai Lert Hotel (280 rooms) Promenade Building 1 2 Staff Canteen Building 3 14
Continue to Expand Our Footprint in the Upcountry New Hospitals in Pipeline 2 1 Bangkok Hospital Surat Bangkok Hospital Chiangrai 1 st Hospitals Total Project Details Commission Beds Phase Date Secondary care hospital Bangkok Hospital Surat 150 50 1H17 1 Targeting middle income patients in Surat and networking with Bangkok Hospital Samui Basic tertiary care hospital Bangkok Hospital Chiangrai 80 56 2018 2 Targeting residents of Chiangrai, Phayao and Nan area and international patients from Southern China, Myanmar and Laos 15
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