Bangkok Dusit Medical Services (BDMS) Investor Presentation 3Q19 - PowerPoint PPT Presentation

Bangkok Dusit Medical Services (BDMS) Investor Presentation 3Q19 & 9M19 Results December 2019

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  BDMS Overview & Updates  3Q19 & 9M19 in review  Operational Statistics & Financial Highlights  Healthcare Industry  Company Background 3

BDMS Overview & Updates 4 4

BDMS Overview 48 Hospitals ~ 8,300 Beds Brand No. of No. of Hospitals Beds* BDMS Wellness 10 Centers of Bangkok Hospital 25 4,057 Clinic Excellence Samitivej Hospital 6 1,324 12,000+ Doctors Pharmaceutical Phyathai Hospital 5 1,241 9,000+ Nurses manufacturer 15,000+ Staffs and drug stores Paolo Hospital 6 1,008 BNH Hospital 1 144  Established on February 26, 1972 Royal Hospital 2 130  Top 5 private hospital operators in the world by market capitalization Local Hospital 3 395  Hub-and-Spoke model with an established * Maximum number of beds according to structure of the hospitals patient referral system helps create efficiency through scale 5

Diversification of Patient Mix Medical Sophistication Revenue breakdown 9M19 Super Tertiary Secondary Tertiary Top 5  UAE International  Japan Patients ~31% Target Patients / Purchasing Power  Cambodia  China  USA High-Income Patients ~67% Income Patients Middle- Security Patients Social ~2% 6

Successful Track Record of Expansion Through M&A and Greenfield Projects Strong Share Price Performance Backed by a Successful Expansion Track Record 2019 2015 Share Price • Bangkok Chiangrai • Bangkok Phetchaburi (THB) • Bangkok International 2006 • Sri-Rayong 2017 2011 30 • Increase in stake of • Dibuk 2004 • Paolo Kaset • Bangkok Hua Hin Bangkok Pattaya, Bangkok • Samitivej Chonburi • Bangkok Heart • Bangkok Surat • Bangkok Pakchong 2013 • Bangkok Muangraj 48 Chanthaburi and Samitivej • Bangkok Samui 25 • Samitivej Thonburi Sriracha (became • Health Network 46 • Bangkok Phuket 43 subsidiaries) • Bangkok Phitsanulok (8 Phyathai & Paolo • Samitivej Sukhumvit and • Bangkok Ratchasima hospitals ) 20 42 45 Samitivej Srinakarin 2018 2016 37 31 • Chiva Transitional 15 • Paolo Rangsit 2014 2007 Care 2005 • Bangkok Chiangmai • Royal Angkor International • BNH 10 • Royal Phnom Penh (Cambodia) (Cambodia) 29 • Wattanosoth • Samitivej Chinatown • Royal Rattanak (Cambodia) * • Bangkok Khon Kaen 28 5 2012 18 • Bangkok Sanamchan & Thepakorn 16 • Bangkok Udon 12 10 • Bangkok Siriroj 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 Jan-17 Jan-18 Jan-19 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 (2004-2018 CAGR of 20.8%) with Resilient EBITDA margin * Operating Income(THB mm) and EBITDA margin (%) 23.4% 23.2% 23.3% 23.1% 23.1% 23.1% 22.9% 22.4% 22.1% 22.1% 22.6% 21.3% 21.4% 21.3% 20.6% 18.4% 62,293 5,635 10,724 15,981 18,885 21,652 21,974 24,051 37,371 47,862 51,407 56,607 63,655 68,844 72,772 79,333 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19 Source: Derived from BDMS’ financial statements * Excluding non-recurring items BDMS has developed 17 new hospitals and acquired a total of 30 hospitals to date 7

BDMS Five-Year Strategy Projects in Pipeline & Strategy 2020 2021 2022 2023-2024  49 Hospitals  ~ 50 hospitals  ~ 8,700 beds  ~ 9400 beds 2025 o Jomtien Hospital o Samitivej (233 beds) International Children (100 beds) Projects in Pipeline Existing Hospital Expansion (Occupancy Rate > 80%) o Paolo o Bangkok o Paolo Chokchai 4 o Expansion of Chokchai 4 Chanthaburi (59 beds) our Network o Phyathai Sriracha (59 beds) (96 beds) Hospitals o Samitiivej (100 beds) o Bangkok Udon Chonburi (161 beds) (135 beds) o Bangkok Ratchasima (166 beds) Volume & Margin Driven Sustainability Innovation & Digital  Leverage more on Hub&Spoke   International Quality & safety  Center of Excellence Strategy medical affiliation standard  Increase occupancy rate   Good corporate Smart Virtual  Expand insurance patient governance Hospital   base Health application Social responsibility 8

BDMS Complete Continuum of Healthcare Center of Excellence Super Tertiary Care Tertiary Care Secondary Care Early Promotive Preventive Curative Transitional Rehabilitative Detection BDMS Wellness Clinic Chiva Transitional Care Hospital Bangkok International Non-Hospital Strategic Investment Sterile Drug Manufacturer & Distributor Generic Drug Manufacturer Drug Store 9

BDMS Center of Excellence Network Upgrading Existing 10 Hospitals to Become Center of Excellence with the Focus on International Patients 6 Bangkok Chiangmai 1 Bangkok Headquarter 7 Bangkok Udon 2 Samitivej Sukhumvit 3 Samitivej Srinakarin 4 Phyathai 2 8 Royal Phnom Penh Bangkok Pattaya 9 Bangkok Rayong 10 5 Bangkok Phuket 10

Diversified Sources of Revenues and Profitability COE Operating Income Contribution in 9M19 COE Total EBITDA Contribution in 9M19 Commentary  In 9M19, 10 Centers of Excellence (COE) contributed  50% of total revenues  55% of total EBITDA * SVNH included SVH and SNH performance Remark: - EBITDA is calculated from revenue from hospital operations + revenue from goods + other income – cost from hospital operations – SG&A - Hospital abbreviation shown on Appendix 11

Medical Cooperation Local and International Partnership Collabpration on occupational  health, pediatrics, rehabilitation, clinical simulation and informatics Collaboration for Others international and   education, training and local institutions research on orthopedics Collaboration for education  Collaboration on  and research on trauma Gastrointestinal Medicine and orthopedics Collaboration for  Research collaboration on  knowledge sharing on the TRFS laser device for orthopedics brain tumor surgery 12

Expanding Insurance Patient Base Patient Revenue by Payor: Increasing Insurance Portion 2013 9M19 Strategic Focus on Health Insurance  Launched exclusive health insurance for BDMS network  Increase hospital traffic in BDMS network  Target insurance payor to increase from 29% in 2018 to 35% in the next few years  E-Claim & E- Billing  Utilization management 13

Exclusive Health Insurance at BDMS Hospital Network My First Class Healthcare @ BDMS by Allianz Ayudhya The Viriyah Insurance Program 1 (Gold)   Maximum benefit per year: THB 80m to THB 100m Maximum benefit for injury or sickness per disability:  Covering all medical treatments THB 1m to THB 5m   Target high-end market Target mid to high-end market The Viriyah Insurance Program 2 (Deductible Plan) The Viriyah Insurance Program 3 (Delight)   Maximum benefit per year: THB 450k to THB 1.5m Maximum benefit per year: THB 400k to THB 800k   Target mid market Choice of THB 20,000/ THB 50,000 deductible per year  Target employee who already have welfare from company 14