Presentation September 2018 Agenda Key developments Project - PowerPoint PPT Presentation

2Q18 Results Briefing Presentation September 2018

Agenda • Key developments • Project updates • Growth outlook • Financial Information 2

Key developments • On 24 August 2018, shareholder meeting approved the purchase of land and building at Pracha Uthit Road to develop Thonburi Health Village Project. • The project is another senior home with facilities for elderly to respond to needs of various customer segments. • During 2Q18, THG have bought shares of Thanarad Thungsong Co.Ltd., total of THB97.6mn. As of 30 June 2018, THG holds 31.23% shares in Thanarad Thongsong: 23.54% directly and 7.69% through Rajyindee Hospital PLC. • BoD meeting of 7/2018 on 5 July 2018 approved the increase of investment limit from THB240mn to THB360mn in order to maintain investment proportion as Thanarad Thungsong increased its registered capital. • Up until September 2018, THG purchased more shares and holds 43.37% shares in Thanarad Thungsong. 3

Hospital business Revenue from domestic hospitals led the growth in medical service business. • +7.1% YoY -1.2% QoQ QoQ slightly dropped due to seasonal effect • TH1 saw stable growth from new excellence centers and collaboration with insurance 1,461 company 1,401 1,384 1,369 1,292 • TH2 saw double digit growth due to higher medical sophistication and more specialist doctors. It compared to last year when IPD ward was partly closed for building heart center. • Capacity expansion projects of TH1 and TH2 are still on track. • RYD picked up from last year that had issues on insurance claim. 2Q17 3Q17 4Q17 1Q18 2Q18 4

Welly Hospital • The hospital is ramping up patient volume and revenue, aiming for break even in 2019. • In 2Q18, OPD patients are approx. 200/day and IPD are approx. 60-70/day. • Welly Hospital continues to develop service standard with expertise, knowledge sharing and service training from THG. Revenue 1H2017 1H2018 OPD Revenue IPD Revenue OPD sequences IPD patient days 5 1H2017 1H2018 1H2017 1H2018

Ar Yu International Hospital • In August, the hospital held a blessing ceremony as a start of hospital operation and preparation for soft launch, which is in 3Q18. Plan for 1 st phase: • 20 OPD rooms, 8 ER beds, 2 ORs and 3 IPD wards • Key success factors: - Modern facilities and equipment - well-known Myanmar medical staff - Thai hospitality service standard - patient safety focused and gear for JCI Staff training CT Scan OR 6

Ar Yu International Hospital Lobby Escalator Lift lobby Pediatric Clinic EENT Clinic 7

Hospital Management & Heart Center Revenue from hospital management • In 2Q18, revenue from hospital management dropped YoY and QoQ because some contracts with overseas clients ended in the -20% YoY -8.7% QoQ quarter. 194 157 138 131 126 2Q17 3Q17 4Q17 1Q18 2Q18 Revenue from heart center +27% YoY +3.6% QoQ 69 57 55 50 45 • Revenue from heart center grew YoY because of new sites at Thonburi 2 Hospital and Phatthalung Hospital. 8 2Q17 3Q17 4Q17 1Q18 2Q18

Thonburi Bamrungmuang Medical Center • Renovation progress is on track. • Expect to start operation around 4Q18, with dental, IVF and Holistic Diabetes centers • Expected EBITDA breakeven in 2019 • Potential to contribute revenue of THB 1 – 1.3 bn in 2019 with expected net profit margin of 15 – 18% Design Renovation progress IVF Holistic Diabetes center Dental Today’s healthcare • Proactive • Preventive • Personalized • Predictive Intra-oral scanner and Advanced technology for patients To support demand of medical CAD/CAM can better serve with complication from chronic tourism from China 9 patients travelling to Thailand diabetes.

Jin Wellbeing County - progress Structure 65% Structure 100% Architecture 15% Architecture 14% Engineering 20% Engineering 20% Exterior 0% Exterior 0% Structure 30% Structure 35% Architecture 0% Architecture 0% Engineering 15% Engineering 15% Exterior 0% Exterior 0% 10

Jin Wellbeing County – Thonburi Burana Hospital Patient room Reception area Cafe Thonburi Burana Hospital • Rehab hospital for elderly who need special care, such as chronic patients, Alzheimer etc. 54 beds to operate in 1 st phase • • IPD rooms, OPD clinics, medical staff, services from physical therapist, dieticians and psychologists • Expect operation in February 2019 11

Jin Wellbeing County – Jin Wellness Institute Activity room Spa Restaurant Cooking studio Jin Wellness Institute 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 4. Learning activities – Art & music therapy, cooking etc. 2. Jin MediFit – Gym with professional instruction 5. Nutrition and meal plan – customized healthy meals 3. Life Enrichment – activities for mind and emotional balance 12

Jin Wellbeing County – Sales and marketing Sales promotion Target = 200 units within 2018 - Ready-to-move-in campaign Current sales = 160 units - 6% yield guarantee for investors More than 70% of customers - Activity booth are 50+ years old and buy for - Grand Age Management: classes and activities for senior themselves. lifestyle 13

Jin Wellbeing County – Award and program Grand Age Management Program Jin Wellbeing County won • Best Senior Living Development • Highly Commended for Best Universal Design Development from Property Guru Thailand Property Award 2018, which is one of the longest- history award in Asian property industry.

Thonburi Senior Home – Comparison 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 62,000 baht Approx. 4-6 mn baht 1.98 mn baht Price per unit (43 and 63 Sq.M.) (32 Sq.M.) 15

Thonburi Health Village – Pracha Uthit Investment value THB700mn 8 rai (4 rai for 1 st phase) Land area Number of units 412 Swimming pool & Wellness Center GFA 26,000 Sq.M SFA 13,824 Sq.M. Ready to transfer December 2018 Wellness center completion March 2019 16

Thonburi Health Village – Pracha Uthit Building E Future project Building A 206 units Future project Building B 206 units Building C Wellness Center Pracha Uthit Rd. 17

Thonburi Health Village – Pracha Uthit Room design - 32 Sq.M. unit Universal design for all wide corridor for wheelchair 18

Thonburi Health Village – Pracha Uthit Wellness Center • Medical spa • Salt chlorinator pool • Gym and personal trainer • Activity area • Healthy cuisine restaurant • Physiotherapy clinic 19

Growth prospect Thonburi • Expected operation in 4Q18 Bamrung Muang Jin Wellbeing • Expected units transfer in 4Q18 County Hospital & • Expected growth from new opportunities excellence both domestically and internationally center Hospital & management • excellence Higher margin from • Organic growth from volume, price and asset-light model center medical intensity, with capacity expansion management • Potential growth from Thonburi Thungsong • Strong core business Hospital and from Thonburi Health Village – with stable growth Prach Uthit in 2019 onwards Domestic hospital & Domestic business hospital & business • Ramping up after grand Welly Hospital opening • Less shared loss due to more patients volume Ar Yu Hospital • Expected operation in 3Q18 with loss shared to THG in first year 2017 2018 onwards 20

Financial information 21

2Q18 Financial Performance Total revenue (mn THB) +6.1% YoY +7.3% YoY 3,358 3,131 1,743 1,738 1,683 1,675 1,578 Medical Medical service service 3,166 2,899 1,641 1,632 1,594 1,572 +5.2% YoY +9.2% YoY 1,495 80 101 100 87 83 227 184 3 2 19 6 2 5 8 2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 Others Healthcare solution provider Medical service • Revenue growth in 2Q18 continued, mainly from Thonburi 1 Hospital that saw increase in patient volume due to new excellence centers and more collaboration with insurance company. • However, slower growth was because of revenue decrease in overseas advisory business. • Opening of heart center at Thonburi 2 Hospital contributes to improvement in IPD after having to partly close a ward for renovating of heart center, and contributes to higher revenue for excellence center business. • THG saw good revenue growth in the first half of 2018 mainly from 1Q that compensated with lower season in 2Q. 22

2Q18 Financial Performance +11.4% YoY Gross profit (mn THB) -0.9% YoY 27.0% 26.0% 27.6% 29.1% 29.3% 28.4% 25.7% 907 508 508 814 478 434 430 2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 Gross Profit GP Margin Gross Profit GP Margin +19.4% YoY -5.3% YoY EBITDA (mn THB) 20.7% 17.8% 19.1% 18.1% 16.0% 16.7% 14.9% 597 348 333 314 500 263 249 2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 EBITDA EBITDA Margin EBITDA EBITDA Margin +2.2% YoY Net profit-parent (mn THB) -45.0% YoY 9.8% 9.4% 9.1% 8.3% 7.2% 6.8% 4.3% 225 230 171 158 158 131 72 2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18 Net Profit -Parent NP Margin 23 Net Profit -Parent NP Margin