Presentation November 2019 Agenda Project updates Financial - PowerPoint PPT Presentation

3Q19 Results Briefing Presentation November 2019

Agenda • Project updates • Financial Information 2

Hospital business Revenue from domestic hospitals increased from new revenue stream. +21% YoY +20% QoQ 1,883 1,567 1,555 1,486 1,462 3Q18 4Q18 1Q19 2Q19 3Q19 • Revenue growth was mainly from new hospital, Thonburi Bamrungmuang. • Main existing ones slightly increased, driven by Thonburi 2 Hospital. 3

Grand opening of Thonburi Thungsong Hospital 4

Thonburi Bamrungmuang Hospital • Grand opening in Jan 19, with dental, Premium Checkup and Diabetic Wound Care centers • OPD pay per bill approx. THB10,000 • IPD pay per bed day approx. THB48,000 • THB turned profit in 3Q19. IVF Reproductive Center Diabetic Wound Care Center Digital Dental Center 5

Ar Yu International Hospital • Ar Yu Hospital operation reached EBITDA breakeven in 3Q19. • More Thai doctors visit patients in Myanmar. • Average OPD patient/day approx. 220 patients • IPD patient occupancy 35-45 beds 6

Welly Hospital • The hospital is ramping up patient volume and revenue, aiming for EBITDA break even in 2019. • Average OPD patients are approx. 300/day and IPD occupancy are > 70/day. Revenue OPD patients 3Q18 3Q19 3Q18 3Q19 OPD Revenue IPD Revenue IPD bed days 3Q18 3Q19 7

Hospital Management & Heart Center Revenue from hospital management -7.6% YoY no change QoQ 119 111 110 110 109 • Revenue dropped YoY because overseas contracts ended. • There are some projects in the pipeline with clients in SEA. 3Q18 4Q18 1Q19 2Q19 3Q19 Revenue from heart center +8.3% YoY +11% QoQ 92 78 • Revenue grew mainly from 72 70 Phathalung site. 56 • Thonburi 2 was approved to treat referred patients under Universal Health Coverage. 3Q18 4Q18 1Q19 2Q19 3Q19 8

Jin Wellbeing County - progress 2019 target 200 unit transfer • Jin Wellness Clinic started operation at Bamrungmuang Hospital. 100% completion • It serves as a gateway for Jin’s potential clients. 150 units sold 102 units transferred since 4Q18 48 units backlog as at end of 3Q19 9

Jin Wellbeing County – Services & Promotion 10

Financial information 11

3Q19 Financial Performance +21% YoY Total revenue (mn THB) +17% YoY Medical service +11% YoY Medical service +18% YoY 2,235 2,009 1,883 1,872 1,854 5,469 4,914 2,071 1,747 1,665 1,651 1,749 211 258 639 218 163 97 281 7 3 4 8 1 16 8 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 Others Healthcare solution provider Medical service • Revenue growth was mainly from sales of Jin Wellbeing County and Thonburi Bamrungmuang Hospital. 12

3Q19 Financial Performance Note: Net special items refer to 1) profit from disposal of Ratchthanee Rojjana - 1Q18 2) Other revenue from write-off of long stand tax payable - 1Q18 3) reserve for employee’s benefits – 2Q19 4) profit from disposal of RJH – 2Q19 +19% YoY -1% YoY Gross profit (mn THB) 27.3% 23.1% 27.9% 25.8% 27.5% 23.9% 17.3% 615 517 485 447 1,424 1,410 348 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 Gross Profit GP Margin Gross Profit GP Margin +8.9% YoY +36% YoY EBITDA (mn THB) ex. special items 18.3% 16.2% 14.6% 10.5% 10.0% 183 81 476 889 816 408 300 197 188 9M18 9M19 3Q18 4Q18 1Q19 2Q19 3Q19 EBITDA net special items EBITDA EBITDA Margin -12% YoY +211% YoY Net profit-parent (mn THB) ex. special items 6.6% 5.2% 5.8% 1.2% 0.4% 151 65 224 261 229 148 22 8 96 9M18 9M19 3Q18 4Q18 1Q19 2Q19 3Q19 13 Net Profit -Parent net special items Net Profit -Parent NP Margin

3Q19 Operational statistics – TH1, TH2, RYD Revenue mix – OPD vs IPD Revenue breakdown by payors – 3Q19 0% 6% 18% 53% 55% 56% 55% 56% 76% 47% 45% 45% 44% 44% 3Q18 4Q18 1Q19 2Q19 3Q19 Self pay Insurance Corporate Others % OPD Revenue % IPD Revenue IPD utilization OPD utilization 73% 72% 66% 66% 64% 64% 60% 59% 58% 58% 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 14

3Q19 Operational statistics – TH1, TH2, RYD OPD sequence (‘000 sequences) IPD occupancy (‘000 bed days) +0.7% YoY -0.1% YoY 280 43 278 41 43 252 251 257 38 33 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 TH1 TH2 RYD TH1 TH2 RYD Pay per sequence (baht) Pay per bed day (baht) -0.2% YoY +1.9% YoY 21,879 2,546 2,532 2,523 2,501 2,495 20,634 20,316 20,241 19,925 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 Approx. THB22,000 – 23,000 for TH2 and TH1, Approx. THB3,000 for TH1 and THB1,800 for RYD and TH2 15 and THB12,000 for RYD

3Q19 Capital management Capital structure (mn Baht) Dividend On 13 Aug 19, BoD approved ST Loan Interim dividend payment for 1H19 performance Equity 4,278 20% 3,144 THB 0.10/share 18% 4Q18 XD date 27 Aug 19 51% Payment date 12 Sep 19 59% 23% 3,052 4,322 29% Dividend policy: LT loan 39 57 not less than 40% of net profit 3Q19 4Q18 2018 IBD Interest 3Q19 IBD Interest Interest coverage ratio (x) Gearing ratio 5.3 9.8 4.4 4.3 3.8 IBD/EBITDA (x) 2.9 7.9 7.0 2017 2018 1Q19 2Q19 3Q19 5.7 DSCR ratio (x) 3.2 4.4 1.3 1.3 1.1 1.1 D/E (x) 2.0 1.7 0.6 1.5 1.4 2017 2018 1Q19 2Q19 3Q19 2017 2018 1Q19 2Q19 3Q19 16

CapEx Plan CapEx (MB) Project 2018 1H2019 (A) 2H2019 (E) 2020 (E) 2021 (E) 4 Yr Thonburi Hospital - 100 - 850 400 1,350 Thonburi 2 Hospital - 100 - 340 200 640 Thonburi Bamrungmuang 750 880 170 100 1,900 Jin Wellbeing County 1,000 400 500 - 1,900 Thonburi Health Village 300 50 50 280 680 Total 2,050 1,530 720 1,570 600 17

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