1Q2020 1Q2020 Disclaimers The information contained in this - - PowerPoint PPT Presentation

1Q2020 1Q2020

Disclaimers

• 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 any securities of Chularat Hospital Public Company Limited (the “company”) 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

• r 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 the company operates and general achievement of the company business forecasts, which will cause the actual results, performance or achievements of the company to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation.

• This presentation has been prepared by the company solely for the use at this presentation. 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 company or any

• f its agents or advisors or any of their respective affiliates, advisors or representatives, shall have any liability ( in negligence or
• therwise) for any loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in

connection with this presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. None of the Company, any of its affiliates or any of their respective agents, advisors or representatives, makes any undertaking to update any such information subsequent to the date hereof.

• 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

ABOUT OUR COMPANY

749

IPD BEDS

9

HOSPITALS

4

CLINICS

790

DOCTORS

156

OPD ROOMS

6

EASTERN PROVINCES

* Established since 1986 (2529 BE) by Plussind Family

3 Plussind 38% Panyapol 19% Others 43%

245 139 247 118 61 34 33 28

CH3 CH9 CH11 Others

IPD Beds OPD Rooms

• CH1
• CH2
• CH5
• CH7
• CH8
• CH12
• CH Cholvaej
• CH Rayong
• CH304
• RPC

Re Remark : : CH1 and CH5 are small size hospitals (< 30 beds) 4

Branch Type Year Established OPD Rooms IPD Beds

Chularat 1 Suvarnabhumi Hospital 1986 5 26 Chularat 2 Clinic 1990 2

• Chularat 3 Inter

Hospital 1991 49 193 Chularat 5 Hospital 1994 5 26 Chularat 7 Clinic 1993 1

• Chularat 8

Clinic 1993 2

• Chularat 9 Airport

Hospital 1993 31 139 Chularat 11 Inter Hospital 1994 21 141 Chularat 12 Clinic 2012 2

• Chularat Cholvaej

Hospital 2014 (M&A) 5 56 Chularat Rayong Hospital 2016 (M&A) 5 50 Chularat 304 Inter Hospital 2018 14 59 RPC Hospital 2018 14 59 156 156 749 749 Total

5

CH Cholvaej CH7, CH8, CH9

Convenience Hospital Co., Ltd. Bang Pakong Vejchakij Co.,Ltd. Thai Amdon Co.,Ltd. Chularat Arkanay Co., Ltd. Cholvaej Hospital Co., Ltd.

Imports medical devices for Chularat Group 100% 100% 100% 96.38%

Sattayabutr Inter Co., Ltd.

100%

Ruampat Chachoengsao Hospital Co., Ltd.

100%

Chularat Phraeksa Hospital Co., Ltd.

100%

Cancer Suvarnabhumi Co., Ltd.

Chularat Hospital Plc.

70% 64.58% CH11, CH12 RPC CH304 CH Rayong

Ruampat Mae Sot International Co., Ltd.

CH Mae Sot 80%

6

• Mr. Kriengsak Plussind

Chairman of the Board

• Dr. Kumpol Plussind

Managing Director

• Mr. Apirum Panyapol

Director

• Dr. Wichit Sirithadthamrong

Director

• Dr. Suchai Laoveerawat

Director

• Mrs. Kobkul Panyapol

Director

• Mr. Yanyong Amornphithankkul

Director Miss Kannikar Plussind Director

• Mr. Manit Jeeradit

Independent Director & Chairman of Audit Committee

• Mr. Chayawat Phisetsit

Independent Director & Audit Committee

• Mr. Somyos Yanubon

Independent Director & Audit Commitee

• Dr. Pinit Kullavanijaya

Independent Director

“BODs of CHG assembling specialists in medical se services s with ith sp specialists ts in in fin finance and busin siness s management”

7

Dr Dr. . Kumpol Plu Plussin ind

Managing Director

Dr Dr. . Ru Rungarun Sa Santhadkolkarn

Hospital Director of CH3

Dr Dr. . Yud udthana San Sanguansakdikoso sol

De Deputy Ma Managin ing Di Director & & Ho Hospital l Di Director

• r of
• f CH9

CH9

Dr Dr. . Su Suchai La Laoweerawat

Hospital Director of CH1 & CH5

• Mr. Su

Suppachoke Roj

• jcheewin

Ms.

• s. Wandee Pi

Pisan anuvan anavech

Deputy Managing Director (Finance & Accounting) Finance & Accounting Manager

“The team has successfully managed se several medic ical se service busin sinesses with ith

• ver 25 years of proven track record.”

Dr Dr. . Chu Chutim ima Pin Pinjaroen

Deputy Managing Director & Hospital Director of CH11&RPC

8

9

• Chularat 1
• Chularat 2
• Chularat 3
• Chularat 5
• Chularat 7
• Chularat 8
• Chularat 9

Bangkok and Samutprakarn

• Chularat 11
• Chularat 12
• Ruampat Chachoengsao

Chachoengsao

• Chularat Rayong

Rayong Prachin Buri

• Chularat Cholvaej

Chonburi

• Chularat 304

“ Our logistics network supports timely preventive and curative cares.“

10

16 16 Ma May 2013 2013

• JCI accredited for Chularat 3 International
• Set up “Prostate cancer clinic” at Chularat 3

International

2014 2015

• Asia’s 200 Best Under A Billion for Chularat Hospital

Group (CHG)

• HA Certificate : Step 2, Step 3 for Chularat 9 Airport and

Chularat 11 International Hospitals.

IPO listing in Stock Exchange

• f Thailand

11

• Opened “IVF Center” at CH11
• Opened “Eye Center Suvarnabhumi” at Chularat 1 Suvarnabhumi
• Re-Accreditation of HA Certificate Step 2, Step 3 for

Chularat 9 Airport and Chularat 11 International Hospitals.

• Re-Accreditation of JCI for Chularat 3 International.

Best Medical Performance Award for Chularat 3 International Set up “3A center: Aesthetic and Anti-Aging Center” at Chularat 9 Airport

2017 2018 2016 2019

• Thailand Top’s Corporate Brand 2019 Award for CHG
• Re-Accreditation of HA Certificate Step 2, Step 3 for

Chularat 9 Airport and Chularat 11 International Hospitals.

• Muang Thai Life Assurance Award and Allianz Ayudhya Best

Medical Performance Award for Chularat 9 Airport

12

Healt lth Se Servic vice Infrastructure

Go Government healt lth se services Priv rivate medical l se sector No Non-profit heal alth se services

Healt lth Se Servic vice Systems

Cas ash & In Insu surance Premiu ium Mid id-tie ier Man anaged car are sch schemes

Soc

• cia

ial Secu ecurit ity (S (SS) Civ Civil l Ser ervants Secu ecurity Na Nati tional l Hea Healt lth Secu ecurity (N (NHS) 12.1 M* 51.5 M* 4.48 M* Thailand population = 67.9 million*

* Health and Welfare Survey 2019, National Statistical Office 13

Re Revenue Str Structure = = (1 (1) + + (2) (2) + + (3) (3) Fix Fixed Pay ayment Sta Statis istics Per r Sp Specia ial Medical l Servic ices

IPD PD

Subje ject to to Nationwid ide e Bu Budget et 453 453 Ba Baht/h /head/year* ( 447 Baht/head/year)***

Only ly 26 26 Chr Chronic Di Diseases All l I IPD PD cas ases Cla Class ssified by y DR DRG Adj dj RW RW** ≥ 2 1 2 3

OP OPD

Ba Basic Paymen ent (F (Fix ixed) 1,6 ,640 Ba Babt/head/year* ( 1,500 Bt/head/year)*** * Effective date: 1 Jan 2020 ** Relative Weight, a measure of the average cost of caring for individual patients. *** Old SSO payment rate/budget during July 2017 – Dec. 2019 12,000 Baht/RW (Avg.)* 746 Baht/head/year* ( 640 Baht/head/year)***

9.3% 16.6% 1.3%

14



General medicine with various subspecialties  Expertise : Heart center, Hand microsurgery, Stroke center, Cancer center, NICU & IVF center, REHAB..

Medical Services

 Laser & Beauty Center  Spa & Thai Traditional Medicine  Chinese Traditional Medicine (Acupuncture)  Anti-aging services

Alternative Services

15

STROKE CENTER & BRAIN SURGERY NICU & IVF CENTER CANCER CENTER HAND & MICROSURGERY REHABILITATION CENTER ENDOSCOPY CENTER PROSTATE BRACHYTHERAPY HEART CENTER CATHLAB & EP EYE & LASIK CENTER MIS SPINE & GENERAL SURGERY 16

17

22

Aortic Aneurysm Minimal Invasive Valve Surgery Electrophysiology Studies (EPS) Coronary Artery Catheterization / Percutaneous Coronary Intervention (CAG-PCI) Cardiac Rehabilitation Coronary Artery Bypass Grafting (CABG) Atrial Septal Defect (ASD)

18

22

Brain Tumor Neurosurgery Minimally Invasive Surgery Headache Head & Brain injuries caused by accidents, falls and physical assault. Dementia Parkinson’s Disease (PD) Stroke Arteriovenous Malformation (AVM) Cavernous Sinus Thrombosis (CST)

19

20

Customer Diversification Cost Control Service Quality

• HA level 3 and JCI approval
• Diagnosis & treatment quality

accredited by both private and public sectors

• Increasing specialized clinics to

accommodate A-Class

• In 2019 : A-Class 63%
• Social Welfare 37%
• Short-term Target : A-Class > 60%
• Long-term Target : A-Class > 70%
• Effective Cost control with

maintained quality

• Pooling E-procurement with

strategic alliances

• Cost & facilities sharing among the

group.

Logistic Network CSR Potential Location

• Industrial area with high growth

community, and closed to international airport

• Nearby highways
• 9 Hospitals and 4 clinics expanding in

strategic locations for patient transfer & personnel rotation among the group

• Raise brand-awareness through CSR

to strengthen the relationship with the communities and become the communities’ hospital

1 3 2 4 6 5 21

01

A-Class

• Cash
• Corporate contracts & Insurance
• Motor Vehicle Accident Protection Act (1992)
• Workers Compensation Fund

02

Social Welfare

• Social Security System
• National Health Security System *

* CH3 is a Referral Center for Heart disease. ( NOT a primary service provider under NHSO scheme. )

22

Customer Grouping

A Cla

lass

So Social l Welfare

01 02 03 04 Self Pay

• Individual Patients in nearby areas

Cash or credit card, based on actual medical treatment Corporate Contract

• Companies / plants in nearby area
• Insurance company having medical

service contract with Chularat Group Credit, based on actual medical treatment, capped by each contract MVAP Act 1992

• Motor vehicle accident patients

Credit, based on actual medical treatment, capped 80,000 Baht / case Workers Compensation Fund (WCF)

• Companies / plants in nearby area
• Insurance company having medical

service contract with Chularat Group Credit, based on actual medical treatment, capped 300,000 Baht / case 01 Self Pay Social Security system (SSS)

• Labors / employees of companies or

plants in nearby area 02 National Health Security System (NHSS)

• Non-SS members

(CHG dose not participate in “30 Baht” for universal coverage project” Credit, based on actual medical treatment, under treatment rate specified by NHSO Fix Fixed Payment Advance payment, based on number of registered SS members Nati tional St Statis istics Base Base Credit, based on comparable national statistics Per er Spe Special Medical Serv Services Credit, based on actual medical treatment, under treatment rate specified by SSO

23

2015 2016 2017 2018 2019

2.297 M 142,222 155,132 2.357 M 2.601 M 185,676

3,155 3,657 3,876 4,407 5,166 14%

Revenue Net Profits Patients

OPD (Head) IPD (Beds-Day) 1.815 M 122,756 2.153 M 140,821

538 565 566 634 705 11% 15% 7% 17% 5% 0% 12%

NI GROWTH (%) REVENUE GROWTH (%)

Unit: Million Baht

Net Profit Margin

CAGR 6.99% CAGR 13.12%

17.1% 15.4% 14.5% 14.3% 13.6%

24

7% 30% 32% 31%

13% 36% 28% 23% 5% 37% 32% 26% 9% 36% 30% 25% 5% 32% 33% 30%

A-Class OPD A-Class IPD SSO NHSO

A-Class IPD A-Class OPD SSO NHSO

3,155 MB

3,637 MB

3,876 MB

(51 : 49)

2015

A-Class OPD

SSO

NHSO

(55 : 45)

2016

(58 : 42)

2017

A-Class IPD

A-Class IPD

A-Class IPD

NHSO

SSO

4,407 MB

A-Class OPD

(63 : 37)

2018 (63 : 37)

2019

5,166 MB

A-Class IPD A-Class OPD NHSO SSO

15% 7% 14% 17%

25

NHSO 6% SSO 32% A-Class OPD 32% A-Class IPD 30% NHSO 6% SSO 32% A-Class OPD 32% A-Class IPD 30% 371 400 392 412 389 427 76 78

• 200

400 600 800 1,000 1,200 1,400

1Q19 1Q20

NHSO SSO A-Class : OPD A-Class : IPD

7.2%

1,317 MB

(62 : 38)

1Q20

1,228 MB

(62:38)

1Q19

Revenue Breakdown by Customer group

26

1.9% 9.7% 5.2% 7.9%

Total A-Class revenue (OPD & IPD) up 7% due to

 2 New hospitals (CH304, RPC) OPD – Revenue (MB) OPD – Visiting Number (VN)

Unit : Million Baht Unit : Head

873 1,093 1,216 1,445 1,654 392 412

2015 2016 2017 2018 2019 1Q19 1Q20 5.2% 14.5%

621,969 743,666 804,167 899,551 980,304 238,379 251,343

2015 2016 2017 2018 2019 1Q19 1Q20 5.4% 9% 27

39,861 50,268 52,256 61,050 72,477 17,376 18,147

2015 2016 2017 2018 2019 1Q19 1Q20

744 902 1,016 1,310 1,581 371 400

2015 2016 2017 2018 2019 1Q19 1Q20 IPD – Revenue (MB) IPD – Admission Number (AN) 4.4% 18.7% 7.9% 20.7%

Unit : Million Baht Unit : Head

28

1,132 1,315 1,452 1,409 1,578 389 427

2015 2016 2017 2018 2019 1Q19 1Q20

• Number of insured persons = 13.4 million ( Mar 2020, SSO) by law article #33 [obligation] and #39 [voluntary]
• Approx. Unemployment rate = 1% ( Mar. 2020, Labor Market Research Division )

SSO – Registered Member (Average ) 9.7%

345,477 396,676 402,018 421,700 435,537 430,918 443,489

2015 2016 2017 2018 2019 1Q19 1Q20 3.3% SSO – Revenue (MB) 11.9%

SSO revenue up 10% due to

 Increased fixed payment rate per head per year.  Increased number of registered members.  Accrued medical treatment income of chronic diseases.

Unit : Million Baht Unit : Head

2.9% 29

CH3 42.6% CH9 21.0% CH11 15.3% Others 21.1%

CH3 40.1% CH9, 20.3% CH11 15.6%

• thers,

24.0% CH3 CH9 CH11

• thers

Major contributors : Chularat3, Chularat9, Chularat11 = 76% ( 1Q19 = 79% ) 3.7% 9.1% 1% 22.2%

Growth (Y (YoY)

7.2%

30

1,317 MB

1Q20

1,228 MB

1Q19

794 822 850 878 907 930 966 959 993 566 566 591 634 595 578 672 756 607 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

129R 126R 132R 143R 144R 150R 146R 156R 149R

71.3% 68.9% 69.5% 72.2% 65.6% 62.1% 69.6% 78.8% 61.1%

Unit : ‘000 Head

• Max. capacity = Rooms x 365 days x 70 (avg. patient/day/room)

Basis: Yearly

2,370 2,576 3,081 3,233 3,344 3,763 1,634 1,815 2,154 2,297 2,357 2,601

2014 2015 2016 2017 2018 2019

60.9% 70.5% 69.9% 71.1% 70.5% 69.0%

121R 127R 101R 93R 131R

Basis: Quarterly

147R

Unit : ‘000 Head

31

Unit : Beds-Day

53,910 54,509 63,112 65,309 67,410 68,159 68,908 68,908 68,159 37,737 34,504 42,979 39,912 44,799 42,208 51,448 47,221 44,878 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

599B 686B

70.0% 63.3% 68.1% 61.1% 66.5% 61.9% 74.7% 68.5% 65.8%

599B 749B

• Max. capacity = Beds x 365 days

137,240 141,620 184,887 213,994 236,840 273,385 112,067 122,756 140,821 142,222 155,132 185,676

2014 2015 2016 2017 2018 2019

749B 505B 586B

81.7% 86.7% 76.2% 66.5% 65.5% 67.9%

649B

Basis: Yearly Basis: Quarterly

Unit : Beds-Day

388B 376B 749B 749B 749B 749B 749B

32

1,232 375 299 179 1,322 386 320 186

Total revenue Gross profit margin EBITDA NI 1Q2019 1Q2020

Unit: Million Baht

33

30.5% 14.6% 24.3% 14.2% 29.3% 24.3%

Growth (YoY)

NI Total Revenue Gross profit EBITDA

7.3% 2.9% 7.0% 3.9%

ROA

Asset & Capital Profile

ROE

13% 10% 9% 5% 63% Short term loan Long term loan Account Payable Other Debt Equity 18.7% 18.5% 17.6% 18.5% 19.4% 17.9%

0.0% 10.0% 20.0% 30.0%

2015 2016 2017 2018 2019 1Q20

1Q20 Equity = 4,069 MB, Debt = 2,354 MB 1Q20 Asset = 6,423 MB 9% 17% 65% 10% Cash Account Receivable & Accrued Revenue PP&E Others

1Q20 1Q20

DE 0.58

ASSET STRUCTURE CAPITAL STRUCTURE 34

14.4% 19.7% 17.2% 15.0% 14.8% 14.4%

0.0% 10.0% 20.0% 30.0%

2015 2016 2017 2018 2019 1Q20

• Samutprakarn
• Apprx 2,000 sq.m.
• High Energy Radiation (LINAC)
• IPD : 10 Beds

Suvarnabhumi Cancer and Radio Therapy Center (Cancer center)

• Target: A-class patient
• CAPEX 250 MB
• Start construction in 2020
• Expect to operate in 2021

35

• Mae Sot district, Tak province
• Approx. 6 Rai
• IPD : 100 Beds
• Target : A-Class patient
• CAPEX PLAN 600 MB
• Start construction in 2020
• Expect to operate in 2021

Chularat Mae Sot International Hospital

36

37

10,000 Heart Heroes for safe life #4rd year

38

Bring good health to the community

39

Sharing to our community

JCI & HA Accreditation

Corporate Governance

4 consecutive years since 2016 40

AdjRW Adjusted Relative Weight CAGR Compound Annual Growth Rate CH Chularat Hospital DRG Diagnosis Related Group

A statistical system of classifying any in-patient stay into groups for the purpose of payment.

HA Hospital Accreditation IPD In-Patient Department JCI Joint Commission International MAVP Act 1992 Motor Accident Vehicle Protection Act 1992 NHSS National Health Security System NHSO National Health Security Office NICU Neonatal Intensive Care Unit OPD Out-Patient Department PP&E Plants, property & Equipment Registered SS Member Registered Social Security Member ROA Return on Assets ROE Return on Equity SSS Social Security System SSO Social Security Office WCF Working Compensation Fund

41

ir@chularat.com

095 370 9059