Investor Presentation March 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” Signed JV for Ar Yu International PPP agreement Hospital in to provide PPP agreement Grand opening Myanmar Registered hospital Thonburi Invested in for Koh Lan of Thonburi Hospital Invested in as a public Modular management CMU Bamrungmuang Restructure company for Pattaya City started Ubonrak Invested in Software and prepare Hospital and Ar limited Hospital operation Hospital Dental Siam Expertise for IPO Yu Hospital 2016 2017 1997 2009 1977 1991 1994 2012 2019 1996 2003 1993 2018 2011 2014 2015 Invested in PPP agreement Invested in Opened Invested in Signed JV for Acquired Sirivej to provide Thonburi Thonburi 2 Rajyindee Welly Hospital shares for Hospital hospital Hospital Heart Hospital Hospital in China Thonburi management centers and Thungsong for Phuket Premier Home Hospital Provincial Health Care Hospital Registered Capital (THB mn) 20 60 300 600 764 849 1976 2016 2017 1980 1991 2013 2
THG Businesses Hospital Business Healthcare Solution Provider Other business 2018 Revenue: THB 23 mm (0.3%) 2018 Revenue: THB 492 mm (6.9%) 2018 Revenue: THB 6,579 mm (92.7%) Domestic / International Hospital Software Development Home Healthcare • 7 Hospitals in Thailand • Develop software to support internal • Medication services to patient’s • 2 Hospitals overseas departments and connect with other home ex. check up, treatment, networks such as Social Security rehabilitation Management Service Office, National Health Security • 2 Hospitals and 1 Medical Center in Office, The Comptroller’s General Senior living Thailand • Jin Wellbeing County, mixed-use Department • MOU for consultancy in Asia development to provide services Project Development for Healthcare & needed by senior Excellent Center Management Service • Thonburi Health Village, to serve Medical Services • 3 Heart Centers under management • Land Pipeline: 1,931 Rai various segments • Book Value: THB 1,811 mm Step-Down Care Dental Supplies Retailer & Drug Stores • A rehabilitation center for patients • 10 Drug stores who do not need close watch from • Exclusive distributor for dental doctors supplies: 30 brands • Low-tone care for OPD patients 3
Growth prospect • More Jin’s unit transfer expected after starting in Jin Wellbeing County + 4Q18 Thonburi Health Village Hospital & • Expected growth from new opportunities excellence center both domestically and internationally management Jin Wellbeing County • Started operation on 24 January 2019 Thonburi Hospital & • Ready to support international patients • Higher margin from Bamrungmuang excellence center catching medical tourism trend asset-light model management • Organic growth from volume, price and medical intensity, with capacity expansion • Strong core business • Potential growth from Thonburi Thungsong with stable growth Hospital, expected to operate in 2H19 • Potential growth from Thonburi Burana Hospital, low-tone care in Jin Wellbeing County Domestic hospitals Domestic hospitals facilities • Ramping up after grand opening Welly Hospital • Less shared loss due to more patients volume • Soft launch in 3Q18 and grand Ar Yu Hospital opening in March 19 with loss shared to THG in first year • Expected EBITDA breakeven in 2020 2018 2019
Hospital Business - overall 5 Key Excellence Centers Welly Hospital (China) Ar Yu International Hospital (Myanmar) Heart Center Women’s Center Ubonrak Thonburi Hospital • Thonburi Hospital • Thonburi 2 Hospital • Thonburi Bamrungmuang Sirivej Hospital Chantaburi Heart Center Orthopedic Center Neuroscience Center • Bangplee Hospital • Phatra Hospital Pattaya City Hospital • Thonburi 2 Hospital • Phattalung Hospital Thonburi Thungsong Hospital Gastrointestinal and Liver Center Rajyindee Hospital Phuket Provincial Hospital Hospital (Thailand) 7 Hospital (overseas) 2 Hospital Management 2 Hospital Accreditation ISO Excellent Center Management 3 of Thailand (HA) Network Hospital 9 5
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. Location: Bangkok Registered beds: 435 Location: Bangkok Registered beds: 95 Location: Ubonratchathani Location: Songkla Location: Chantaburi Registered beds: 196 Registered beds: 90 Registered beds: 100 6
Hospital Business – Positioning benchmark Prestigious public medical schools High end, international focused Super tertiary High end Medical sophistication Thonburi Hospital High end, Tertiary international focused Thonburi 2 Hospital Mid to high end hospitals Secondary High end, Mid to lower end hospitals international focused Lower end, SSO Price per disease THG has capability and capacity for sophisticated medical services but at more affordable price. 7
Hospital Business – Thonburi and Thonburi 2 Hospital Thonburi Expansion Plan 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’ Area Completion Total Details Capacity convenience and satisfaction (sq.m.) Year Investment - Expand customer base with continuous 10 fl car park 8,820 150 cars 2020 120MB marketing activities with insurance, building corporate and foreign customers. 8 fl OPD building 14,900 50 OPD Rooms 2020 740MB Thonburi 2 Expansion Plan • 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 Area Completion Total Details Capacity (sq.m.) Year Investment at affordable price, potential revenue increase should be mainly from more 3 fl IPD & OPD 15 OPD Rooms/ 12,000 2020 435MB sophisticated treatments. building 52 Beds 8
Hospital Business - Thonburi Bamrungmuang Hospital Tier 1 hospital serving medical tourism Orthopedic Affordability Thonburi Hospital Luxury Heart Neuro ICU Operation Room Location: West of BKK Location: CBD Orthopedic - Endoscopic surgery Gastrointestinal - checkup IVF Reasonable Wellness price IPD Premium Checkup Plastic surgery Expertise in Dental (by Medical tourism Dental Siam) Location: Easy-to-access Step-down care Rehab Supporting patients Synergy with Thonburi Competitiveness when from Thonburi Hospital compared to existing Geriatrics and Bamrung Muang players Today’s healthcare • • Personalized Proactive 9 • • Predictive Preventive
Thonburi Bamrungmuang Hospital • Grand opening in January 2019. • Operating dental, premium checkup and Holistic Diabetes centers with IVF in a pipeline 10
Thonburi Bamrungmuang Hospital Checkup Ward 11
Thonburi Thungsong Hospital Project 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. 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 12
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 Asia Continent Ar Yu International Hospital Welly hospital Location: Yangon, Myanmar Location: Wei Hai, Shandong region Project: 200-bed private hospital which Project: 130-available-bed private hospital is the first with international standard in an area mostly populated by state Partners: GMP 50%, THG to be 40%, hospital AMS 10% Grand opening in 4Q17 - Ga Mone Pwint: Leader in brand Partner: THG 58%, WEGO 42% developer, property & real estate, hotel, Leading manufacturer of medical devices in retail, and trading business in Myanmar China - Aryu Ananta Medical Services: A group of leading local doctors 13
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 FY17 FY18 OPD Revenue IPD Revenue OPD sequences IPD bed days FY17 FY18 14 FY17 FY18
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