Ana Analyst st Presenta esentatio tion 3Q 3Q18 & 9M 18 - - PowerPoint PPT Presentation

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Ana Analyst st Presenta esentatio tion 3Q 3Q18 & 9M 18 & 9M18 R 18 Result ults 15 November 2018 Disclaimer This presentation and all other information, materials or documents provided in connection therewith, must not be


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Ana Analyst st Presenta esentatio tion 3Q 3Q18 & 9M 18 & 9M18 R 18 Result ults

15 November 2018

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This presentation and all other information, materials or documents provided in connection therewith, must not be photocopied or reproduced or distributed to any other person in whole or in part at any time except with Praram 9 Hospital Public Company Limited (“PR9”) prior written consent. These materials have been prepared by PR9 solely for use at a presentation for this meeting. No representations, warranties, or undertakings, express or implied, are made by PR9, or any of their respective members, directors, officers, employees, agents, affiliates, advisers or representatives or any other person as to, and no reliance should be placed

  • n, the fairness, accuracy, completeness or correctness of, the information or opinions presented or contained in these materials. By attending this presentation, you are agreeing

to be bound by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. The contents of these materials have not been verified by PR9 and it may not contain all material information concerning PR9. None of PR9, or any of their respective directors,

  • fficers, employees, agents, affiliates, advisers or representatives accepts any liability whatsoever in negligence or otherwise for any loss howsoever arising, whether directly or

indirectly, from any use of the information or opinions presented or contained in these materials or otherwise arising in connection with these materials. The information and

  • pinions presented or contained in these materials are provided as at the date of this presentation based on the economic, regulatory, market and other conditions as in effect on

the date hereof and are subject to verification, completion, updating, revision and change without notice and the accuracy of the information is not guaranteed. It should be understood that subsequent developments may affect the information and opinions presented or contained in these materials, which neither PR9 nor its advisers or representatives are under an obligation to update, revise or affirm. This presentation may contain “forward-looking statements” as well as “unaudited forecasts” and “projected financial information” (“Forward-Looking Statements”), which (i) address hypothetical situation, (ii) are based on current expectations and projections about future events, or (iii) include all statements other than statements of historical facts, as well as predictions, projections and forecasts of the economy or economic trends of the markets. Such Forward-Looking Statements are not necessarily indicative of the future or likely performance or projection of PR9 and involve known and unknown risks, uncertainties and other important factors beyond the control of PR9 that could cause the actual results, performance or achievements or industry results to be materially different from future results, performance or achievements expressed or implied by such Forward- Looking Statements. Such Forward-Looking Statements are based on forecasts and projections from PR9. Forward-Looking Statements are not guarantees of future performance and speak only as at the date of this presentation, and none of PR9, or any of their respective directors, officers, employees, agents, affiliates, advisers or representatives intends or has any

  • bligation or undertakes to supplement, amend, update or revise any forward-looking statements as a result of new information or to reflect future events or circumstances,

except as required under applicable laws. You should not place undue reliance on these Forward-Looking Statements. Past performance is not necessarily indicative of future performance. No part of this presentation and the information contained in these materials shall constitute or form part of any advertisement of, commitment or offer or invitation of any offer for sale or subscription of or solicitation or recommendation or invitation of any offer to buy or subscribe for, any securities of PR9 in any jurisdiction nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. No consideration has been given to particular investment objectives, finances or needs of any recipient. This presentation should not be treated or relied upon as advice relating to legal, taxation, financial, accounting, investment matters or advice or a credit or other evaluation of the offering for any securities of PR9. By attending this presentation you (i) acknowledge that you will be solely responsible for your own assessment of the market and the market position of PR9, and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of PR9’s business and (ii) agree to be bound by the foregoing terms PR9 and its representatives are not responsible for any costs or expenses incurred by the recipient.

Disclaimer

1

Note: Analyst Presentation 3Q18 & 9M18 Results as of 15 November 2018

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PR9 Summary and Updates Operational Statistics & Financial Performance

2 3

Project Updates

4

Agenda

2

Overview

1

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PR9 Summary and Updates Operational Statistics & Financial Performance

2 3

Project Updates

4

Agenda

3

Overview

1

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Vision & Milestones

4

THB 200 mm Rights offering 1st private hospital with 64 Slice CT Scan Implementation of Pharmacy Robot Signed Kidney referral MOUs Started new building construction 1st private hospital with 640 Slice CT Scan 500 Kidney Transplant Cases Started using 4D Ultrasound

2016 2018 2017 2013 2004 1992 2001 2005

Started hospital

  • peration

The Most Trusted State of the Art Healthcare Provider Providing the Best Healthcare Solution for Prevention and Treatment that are Valuable for Money by Professional Using State of the Art Technology

Mission Values Vision

Accountability Teamwork Professionalism

Listed in the Stock Exchange of Thailand

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Overview

22 Comprehensive Medical Centers

5

Tertiary-care hospital with world class medical quality (both general and complex treatments)

Mind Center X Breast Clinic, Praram 9 Hospital Praram 9 Hair Center Eye Center Obstetric Gynecology Center Orthopedic Center Medical Center Surgery Center Pediatrics Center Ear Nose and Throat Center Dental Center Check-Up Center Skin Rejuvenation Cosmetic Laser Surgery & Dermatology Center Rehabilitation Center

Imaging Center (X-Ray)

Emergency Center Gastroenterology (GI) and Hepatobiliary (Liver) Neurology Center Diabetes Metabolic Center Thyroid Center Cardiovascular Institute Kidney Transplant Institute

Medical Accreditation Technology Other key Achievements

ü 2010/ 2013/ 2016 – JCI 3rd accredited ü 2016 - CCPC: Kidney ü 2016 - CCPC: Diabetes medical care ü 2000 - ISO 9001:1994 ü 2003 - ISO 9001:2000 ü 2004/ 2007 - HA Level 3

− 2017 : 640-slice CT Scan − 2016 : Pharmacy Robot − 2005 : 64-slice CT Scan − 2004 : 4D Ultrasound

2017: Best Utilization Award AXA Provider Award 2018:Thailand Top Company Awards 2018 (Healthcare Sector) Business+ magazine & University of the Thai Chamber of Commerce 2017: Fertility Service Provider of the Year Global Health and Travel Awards 2017

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PR9 Key Strategies

6

Top Line Initiatives ü Hospital Network Expansion and Medical Cooperation ü Increase Corporate and Insurance Coverage ü International Patients Expansion

n 21 step down

ICU beds

n 77 normal ward

beds

n 24 ICU/CCU

beds

n 21 normal ward

beds

n 21 normal ward

beds ü Leverage expertise to build new customers base ü Enhance medical treatment quality in the long term Scope and Scale Expansion

n Comprehensive

medical check- up program

n Pain and Rehab

Center

n Metabolic Syndrome

Care Center

n Allergy Center

Margin Expansion ü Increase capacity utilization which will result in lower unit cost ü Increase service intensity ü Digital Hospital Transformation Revitalizing Brand Awareness 2018 2019E 2020E 2022E 2021E

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Capacity Addition (New Facility and Renovation of Existing Facility)

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(1) The actual active beds will be phasing subject to demand and business situations. (2) Expected completion of new building with the maximum new bed capacity of 59 beds in 1Q2019. (3) Step down ICU and additional ICU/CCU capacity expected completion are on 4Q2018 and 3Q2020 respectively

Scale and scope of services expansion

Where we are today Where we want to be New Building (Wellness) Renovated Existing Building (Chronic) Offer Comprehensive Medical Services Health Promotion/ Disease Prevention / Curative Medicine / Rehabilitation Recognized complex medical treatments providers Usable Area

  • c. 57,325 sq.m

Step Down ICU ICU and CCU Normal Wards NICU Total (A) (B) 2017

  • 24

122

  • 3

149 2018E 21(3) 24 122

  • 3

170 2019E 21 24 140 59(2) 3 247 2020E 21 48(3) 140 59 3 271 2021E 21 48 161 59 3 292 2022E 21 48 182 59 3 313

New capacity addition(1)

Health Promotion Disease Prevention Curative Medicine Rehabilitation Leverage expertise to build new customers base Increase intensity of existing customers Enhance medical treatment quality in the long term

n

One Stop Service Check-up Center

n

Metabolic Syndrome Care Center

n

Allergy Center

n

Pain and Rehabilitation Center ü ü ü A B

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Increase PR9’s brand awareness of value-for-money tertiary-care service Rebranding campaign includes corporate image and formulating brand awareness strategy and execution in addition to plan to uplift perception towards advanced and modernized through digital initiatives and new and renovated facilities

Positioning Benchmark

8

For Illustration Purposes Only

Reputation Price Point – Premium

A B D C E F

New Building (Wellness) Renovated Existing Building (Chronic)

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Overview

1

Operational Statistics & Financial Performance

3

Project Updates

4

PR9 Summary and Updates

2

Agenda

9

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135 327 146 346 3rd Quarter 9 Months

EBITDA '17 EBITDA '18 EBITDA Margin Adjusted margin 20.9% 20.4% 18.4% 17.2% 18.5%

81 178 87 190 3rd Quarter 9 Months

Net Profit '17 Net Profit '18 Net Profit Margin Adjusted margin

Financial Summary

10

640 1,754 711 1,989 3rd Quarter 9 Months

Medical Revenue '17 Medical Revenue '18

n Medical revenue in 3Q2018 of THB 711 mm, 11.1%

yoy increase, due to increase of complex disease cases e.g. kidney transplant, breast cancer, and

  • rthopedic surgery

n Medical revenue in 9M2018 of THB 1,989 mm,

13.4% yoy increase, due to increase of international patients especially Myanmar, China, and Cambodia

n

EBITDA in 3Q2018 of THB 146 mm, 7.8% yoy increase, due to the increase in sales and administrative expenses and staff welfare compared to the 3Q2017. EBITDA margin, a 20.4% decrease from 3Q2017 20.9% This was due to the higher cost over the slightly increased revenue.

n

EBITDA in 9M2018 of THB 346 mm, 5.7% yoy increase, due to better performance from last year but effected by non- recurring expense 26.4mm , adjust non-recurring expense EBITDA margin from 17.2% to 18.5%

n

Net Profit in 3Q2018 of THB 87 mm, 7.7% yoy increase due to EBITDA Increase and Taxation increase 19.1% so Net margin decrease from 12.5% to 12.2%

n

Net Profit in 9M2018 of THB 190 mm, 6.8% yoy increase, due to better performance from last year but effected by non-recurring expense 23.9 mm so adjust non-recurring expense Net margin from 9.4% to 10.6%

12.5% 12.2% 10.0% 9.4% 10.6%

Core Revenue EBITDA Net Profit

(1) As % of total revenue (2) Adjusted for Non-recurring items; which includes advisor expenses, fee on loan agreement and other IPO preparation expenses, and other high-value expenses; which includes expenses

  • n employee benefit obligation from hospital’s founder benefits calculated by actuarial and Allowance for doubtful account

26.4 372.1 23.9 213.9

(1) (2) (1) (2)

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Operational Update

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Kidney Transplant Institute Hospital Network Visit / Kidney Transplant Cases and Waiting List Capacity Addition: Step down ICU (9th floor) / New Building Digital Hospital Transformation: OPD Appointment application / Mobile IPD Doctor / In room service Revitalizing Brand Awareness: New Website

2 1 3 4

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Kidney Transplant Institute: Hospital Network Visit

Visited Trang Ruampat Hospital during 15 – 16 September 2018 and hosted the following events;

n

Public conference on Kidney Transplant: Over 120 participants attended the conference

n

Multidisciplinary conference: 34 professionals (Doctors and Medical personnel) from 5 hospitals

12

1 2

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Capacity Addition: 21 Step down ICU Beds (9th floor)

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Renovation Progress Expected Opening on 4Q/2018

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Capacity Addition: New Building

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Construction Progress

Floor 16 Zone A Floor 15 Zone A Floor 17 Zone B Rooftop Zone B

Expected Opening on 4Q/2019

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Capacity Addition: New Building

15

PROPOSED PERSPECTIVE VIEW l Lobby PROPOSED PERSPECTIVE VIEW l Hydrotherapy

PROPOSED FURNITURE PLAN l Dental Exam Room PROPOSED PERSPECTIVE VIEW l Typical VIP Ward Room

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16

Digital Hospital Transformation

OPD Appointment application Mobile IPD Doctor In room service

Real time Doctor Appointment Medication safety Improve customer experience

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Revitalizing Brand Awareness: New Website

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Expected Launch on December 2018

n New website apply new Corporate Identity. n It’s developed by applying Service design and UX and UI. n Apply Live Chat in Phase 2. n Fully E-Commerce functions.

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PR9 Summary and Updates

2

Project Updates

4

Agenda

18

Overview

1

Operational Statistics & Financial Performance

3

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Financial Performance

19

(1) Other revenue including interest income, rent income and others (2) Not include social security nor Thailand’s Universal Coverage schemes

345 371 349 353 388 920 1,090 295 297 293 283 323 834 899 7 10 11 6 5 24 23 647 678 653 642 716 1,778 2,011 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018 OPD IPD Other revenue Unit: THB mm Self-pay Patients 78.1% Contract Patients(2) 21.9% Self-pay Patients 74.4% Contract Patients(2) 25.6%

Total Revenue 9M2018 IPD Revenue 9M2018 OPD Revenue THB 1,090 mm Y-o-Y growth Total +13.2% Medical Revenue +13.4% IPD +7.8% OPD +18.4%

(1)

3Q Q-o-Q growth Total +11.5% Medical Revenue +11.8% IPD +14.0% OPD +10.1% THB 899 mm 3Q Y-o-Y growth Total +10.7% Medical Revenue +11.1% IPD +9.4% OPD +12.5%

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Revenue Mix

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76% 74% 76% 78% 75% 77% 76% 19% 18% 19% 18% 19% 18% 19% 5% 8% 5% 4% 5% 5% 5%

3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018

Self-Pay Patients Insurances Corporates

Unit: by value

Nationality Payor

Myanmar 43% China 17% Japan 9% Cambodia 5% Others 26%

Unit: THB mm (By value)

Thai patients c.90%

By patient By value

International patients c.10% International patients c.15% Thai patients c.85% “Higher revenue per patient from international patients” 54% 56% 54% 56% 55% 53% 55% 46% 44% 46% 45% 45% 48% 45%

3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018

OPD IPD

Type of Patients

Unit: by value

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Operational Statistics

21

(1) Calculated from actual monthly active beds * number of days in each month

IPD Admission & Occupancy Rate IPD Revenue per Admission OPD Visits OPD Revenue per Visit

104 106 102 103 112 284 318

3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018 Unit: ’000 visits

3,302 3,502 3,408 3,433 3,452 3,238 3,432

3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018 Unit: THB per visit

3,375 3,191 3,363 3,009 3,511 8,761 9,883 75.6% 73.9% 73.8% 60.6% 72.3% 68.0% 68.8%

3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018

IPD Occupancy Rate

Unit: Admissions

87,384 92,922 87,217 94,036 91,905 95,147 90,959

3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018 Unit: THB per admission

(1)

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Profitability

22

(1) As % of medical revenue (2) As % of total revenue (3) Adjusted for Non-recurring items; which includes advisor expenses, fee on loan agreement and other IPO preparation expenses, and other high-value expenses; which includes expenses

  • n employee benefit obligation from hospital’s founder benefits calculated by actuarial and Allowance for doubtful account

207 213 198 187 227 527 612 32.3% 31.9% 30.8% 29.4% 32.0% 30.0% 30.8% 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018 Gross Profit Gross Profit Margin

Unit: THB mm

135 141 102 98 146 327 346 20.9% 20.9% 15.5% 15.3% 20.4% 18.4% 17.2% 18.5% 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018 EBITDA 81 84 52 50 87 178 190 12.5% 12.5% 8.0% 7.8% 12.2% 10.0% 9.4% 10.6% 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 9M2017 9M2018 Net Profit

Gross Profit EBITDA Net Profit

Unit: THB mm Unit: THB mm

26.4 23.9 372.1 213.9

(3) (2) (2) (3) (1)

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1,669 1,881 2,095 1,779 380 413 762 920 Equity Liability 9.8% 12.0% 10.2% 10.5% 11.7% 14.6% 13.2% 14.5% 2015 2016 2017 9M2018 ROAA ROAE

Capital Structure and Returns

Unit : THB mm

23

Capital Structure ROAA and ROAE(1)

(1) 9M2018 ROAA and ROAE are based on TTM basis (4Q2017 – 3Q2018 Net Income)

Unit: % on average balance sheet item 2,049 2,294 2,857 2,699 Asset 2015 2016 2017 3Q2018 As of 30 September 2018 PR9 has no interest bearing debt

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PR9 Summary and Updates

2

Agenda

24

Overview

1

Operational Statistics & Financial Performance

3

Project Updates

4

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Projects in Pipeline

(1) As of 30 September 2018

25

Project Type Details

  • Approx. Period

Total cost (THB mm) 1) Renovation of existing building Upgrade / Renovate Under construction § 21 Step Down ICU beds – FL9 § 21 Normal ward beds – FL11 § 10 Normal ward beds – FL10 2018 – 2019 137 Future Projects § 24 ICU & CCU beds § 42 Normal ward beds § Re-Façade 2020 – 2022 235 2) New building New 16-story building with 2 underground floors 2017 - Q4/2019 2,343 3) Home Office New 6-story office building for back-office personnel 2018 - Q4/2019 70 4) Nurse Condominium New 8-story nurse condominium with approx. 80 rooms 2018 – 2019 200 5) Digital Hospital Upgrade Strategy for digital transformation 2018 - 2020 50

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For more information, please contact IR Department Email: Chalikark@praram9.com Tel: 1270 ext. 35101 Fax: +662-248-8018