Chularat Hospital Public Company Limited Presentation for 3Q2019 - - PowerPoint PPT Presentation

Chularat Hospital Public Company Limited

Presentation for 3Q2019

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

COMPANY OVERVIEW

ABOUT OUR COMPANY

749

IPD BEDS

9

HOSPITALS

4

CLINICS

747

DOCTORS

150

OPD ROOMS

6

EASTERN PROVINCES

Pri rivate Hospital*

* Established since 1986 (2529 BE) by Plussind Family

3

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 45 193 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 12 59 150 150 749 749 Total

Branch Summary

Update : 3Q19

4

5

Business Profile

Rem emark : : Chularat 1, Chularat 5 are small size hospitals (< 30 beds)

245 139 247 118 57 34 33 26

Chularat 3 Hos. Chularat 9 Hos. Chularat 11 Hos. Others

IPD Beds OPD Rooms

Service Potential

+C +Chularat 1 +C +Chularat 2 +C +Chularat 5 +C +Chularat 7 +C +Chularat 8 +C +Chularat 12 +C +Cholvaej +C +Chularat Rayong +C +Chularat 304 +Ruampat Ch Chachoengsao (R (RPC)

Corporate Structure

Update : 4Q18

Chularat Hospital Plc.

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.

6

70%

64.58%

• 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 medic ical se services with ith sp specialists s in in finance and business management”

Board of Directors

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

Depu Deputy Man anag aging ng Dir Direc ector & Hos

• spi

pital Dir Direc ector

• f
• f CH9

Dr Dr. . Su Suchai Lao Laoweerawat

Hospital Director of CH1 & CH5

MEET OUR MANAGEMENT TEAM

Dr Dr. . Chu Chutim ima Pin Pinjaroen

Deputy Managing Director & Hospital Director of CH11&RPC

• Mr. Su

Suppachoke Roj

• jcheewin

Ms.

• s. Wandee Pi

Pisanuvanavech

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

8

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

• ver 25 years of proven track record.”

• 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

Star of the EAST

9

Service Area Map

10

KeyMilestones

16 May 2013 IPO listing in Stock Exchange of

Thailand

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

Ch Cholv lvaej Hosp spit ital l Acquis isit itio ion

2014

11

• Opened “IVF Center” at CH11
• Opened “Eye Center Suvarnabhumi” at

Chularat 1 Suvarnabhumi Best Medical Performance Award for Chularat 3 Inter Set up “3A center: Aesthetic and Anti-Aging Center” at Chularat 9

2017 2016 2018

Ruampat Rayong Hosp spit ital l Acquis isit itio ion Green fie field ld : : Ch Chula larat 304 HOSPITAL & Ruampat Ch Chachoengsao Hospit ital l (R (RPC) C)

12

Health Care Service System in Thailand

Health service infrastructure Go Government healt lth se services Priv rivate medical l se sector No Non-profit heal alth se services Health service systems Cash ash & In Insu surance Premiu ium Mid id-tie ier Man anaged car are sch schemes

Soc

• cial Security

ty (SS) Civ Civil Serv ervants ts Security ty Na Nati tional Hea ealth th Security ty (NHS)

13.9 M 48.2 M 4.83 M Thailand population = 67.2 million

13

Revenue from Social Security System (New)

Revenue Structure = (1) + (2) + (3) Fixed Payment Statistics Per Special Medical Services Bas asic Pay ayment (F (Fixed) 1,500 Bt/head/yr* Customer Com

• mplaints: 60 Bt/head/yr**

Disc ischarge Typ ype: 60 Bt/head/yr** IP IPD OP OPD 12,800 Bt/RW (avg.)* Su Subje ject to to Nat ationwide Budget (447 bt/head/year)*

OP OPD on

• nly

ly 26 26 Chr Chronic ic Di Diseases All l I IPD PD cas ases Cla lass ssified by y DR DRG AdjRW ≥ 2

1 2 3

14

* Effective date: 1 July 2017 ** Effective date: 1 Jan 2018

Our Services

15



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

Areas of Expertise

16

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

Areas of Expertise

17

CANCER CENTER REHABILITATION CENTER HEART CENTER CATHLAB & EP EYE & LASIK CENTER

Competitive Advantages

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 2018 : 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

18

Customer Grouping

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

19

Targeted Customer & Payment Basis

Customer Grouping

A Class Social 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 20

FIN INANCIAL HIG IGHLIGHTS

Comparison Thailand Healthcare Performance

2017 2017 2018 2018 Growth

SET 11,484,385 12,713,431 10.7% Healthcare 156,210 169,319 8.4% CHG 3,8 ,896 4,4 ,431 13.7%

2017 2017 2018 2018 Growth

SET 944,721 933,435

• 1.2%

Healthcare 21,967 22,185 1.0% CHG 565 565 634 634 12.1%

Revenue Net Profits

21

Source: SET smart

2014 2015 2016 2017 2018

2.297 M 142,222 155,132 2.357 M

2,672 3,155 3,657 3,876 4,407

Revenue Net Profits Patients

OPD (Head) IPD (Beds-Day) 1.634 M 112,067 1.815 M 122,756 2.153 M 140,821

481 538 565 566 634

12% 5% 0% 12% 15% 7% 18% 14% 20% 16%

NI GROWTH (%) REVENUE GROWTH (%)

Financial Performance VS Patient Growth

Unit: Million Baht 22

Revenue Breakdown 2014-2018 By Customer group

• Hospital service revenues increased significantly from 2014 to 2018 with CAGR of 13.33%
• Revenue from A-Class still dominated revenues (> 50%) from other sources.

9% 36% 30% 25%

5% 37% 32% 26%

13% 23%

8% 23%

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

2,672 MB 3,155 MB

3,637 MB

(51 : 49)

2014

A-Class OPD SSO NHSO

(51 : 49)

2015

(55 : 45)

2016

A-Class IPD A-Class IPD A-Class IPD NHSO SSO

3,876 MB

(58 : 42)

2017

A-Class OPD

Service Revenue Structure

23 5% 32% 33% 30%

(63 : 37)

2018

4,407 MB

A-Class IPD A-Class OPD

NHSO

SSO 18% 15% 7% 14%

Unit: Million Baht

NHSO 5% SSO 30% A-Class OPD 34% A-Class IPD 31% NHSO 6% SSO 32% A-Class OPD 31% A-Class IPD 31%

1,431 MB

(62 : 38)

3Q19

Revenue Breakdown by Customer group

1,149 MB

(65:35)

3Q18

362 440 389 437 342 462 56 92

• 200

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

3Q18 3Q19

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

3Q2019 Overview

65.2% 35.3% 12.4% 21.3%

24

Unit: Million Baht

NHSO 5% SSO 32% A-Class OPD 33% A-Class IPD 30% NHSO 7% SSO 32% A-Class OPD 31% A-Class IPD 30%

3,838 MB

(62 : 38)

9M19

Revenue Breakdown by Customer group

3,268 MB

(63:37)

9M18

992 1,159 1,067 1,210 1,033 1,217 176 252

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

9M18 9M19

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

9M2019 Overview

43.4% 17.8% 13.3% 16.9%

25

A Class Patients - OPD

752 873 1,093 1,216 1,445

2014 2015 2016 2017 2018

Total l A-Cl Class revenue up up due to

• Service area expansion in

existing hospitals.

• 2 New hospitals (CH304, RPC).
• Volume increased.

26

548,550 621,969 743,666 804,167 899,551

2014 2015 2016 2017 2018 OPD – Revenue (MB) OPD – Visiting Number (VN)

Unit : Million Baht

Unit : Head

239,031 676,487 258,510 732,871 3Q18 3Q19 9M18 9M19

389 1,067 437 1,210

3Q18 3Q19 9M18 9M19

12.4% 13.3% 8.1% 8.3%

A Class Patients – IPD

611 744 902 1,016 1,310

2014 2015 2016 2017 2018

27

IPD – Revenue (MB) IPD – Admission Number (AN)

34,412 39,861 50,268 52,256 61,050

2014 2015 2016 2017 2018

Unit : Million Baht

Unit : Head 362 992 440 1,159

17,279 46,459 20,463 53,629 3Q18 3Q19 9M18 9M19 3Q18 3Q19 9M18 9M19

16.9% 21.3% 18.4% 15.4%

342 1033 462 1217 1,085 1,132 1,315 1,452 1,409

2014 2015 2016 2017 2018

326,783 345,477 396,676 402,018 421,700 419,901 434,113 2014 2015 2016 2017 2018 3Q18 3Q19 Unit : Head

• Number of insured persons = 13.9 million (Feb 2019, SSO) by law article #33 [obligation] and #39 [voluntary]
• Unemployment rate = 1% (Jan 2019, Labor Market Research Division)

SSO – Registered Member (Average )

SSO Patient

28

SSO – Revenue (MB)

For r 3 months : :

• Actual payment from OPD

(26 Chronic Diseases ) was

• ver the accrual amount.
• Increasing number of cases

and registered members.

For r 9 months : :

• Actual payment from customer

complaint and discharge type was

• ver the accrual amount.

Unit : Million Baht

3Q18 3Q19 9M18 9M19

35.3% 17.8% 3.4%

Revenue Breakdown by Branches

Chularat3 40% 40% Chularat9 19% 19% Chularat11 17% 17%

• th
• thers

24% 24%

Chularat3 Chularat9 Chularat11

• thers

1,431 MB

3Q19

Revenue Breakdown by Branches : 3 months

29

Chularat3 44% 44% Chularat9 22% 22% Chularat11 16% 16%

• th
• thers

18% 18%

1,149 MB

3Q18

Major contributors : Chularat3, Chularat9, Chularat11

9% 34% 13% 62% Growth (Y (YoY)

Revenue Breakdown by Branches

Chularat3 41% 41% Chularat9 20% 20% Chularat11 16% 16%

• th
• thers

23% 23%

Chularat3 Chularat9 Chularat11

• thers

3,838 MB

9M19

Revenue Breakdown by Branches : 9 months

30

Chularat3 45% 45% Chularat9 21% 21% Chularat11 17% 17%

• th
• thers

17% 17%

3,268 MB

9M18

Major contributors : Chularat3, Chularat9, Chularat11

11% 14% 8% 52% Growth (Y (YoY)

Unit : ‘000 Head

OPD Utilization Rate

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

Basis: Yearly

31

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

2014 2015 2016 2017 2018

60.9% 70.5% 69.9% 71.1% 70.5%

121R 127R 101R 93R 131R

Basis: Quarterly

794 822 850 878 907 930 966 566 566 591 634 595 578 672

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

150R

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

129R 126R 132R 143R

Unit : ‘000 Head

146R 144R

Unit : Beds-Day

53,910 54,509 63,112 65,309 67,410 68,159 68,908 37,737 34,504 42,979 39,912 44,799 42,208 51,448

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

599B 686B

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

599B 749B

• Max. capacity = Beds x 365 days

IPD Utilization Rate

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

2014 2015 2016 2017 2018

505B 586B

81.7% 86.7% 76.2% 66.5% 65.5%

649B

Basis: Yearly Basis: Quarterly

Unit : Beds-Day

749B

32

388B 749B 376B 749B

Financial Highlights : 3 months

1,149 323 260 151 1,431 496 418 269

Total l revenue Gross profit it margin EBITDA NI NI 3Q18 3Q19

Growth (YoY)

Unit: Million Baht

28.1% 22.6% 13% 34.7% 29.2% 19% 33

NI

54% 61%

Total Revenue Gross profit EBITDA

25% 78 %

Financial Highlights : 9 months

3,268 1,015 849 522 3,838 1,183 956 571

Total l revenue Gross profit it margin EBITDA NI NI 9M18 9M19

Growth (YoY)

Unit: Million Baht

31.1% 25.9% 16% 30.8% 24.9% 15% 34

NI

17% 13%

Total Revenue Gross profit EBITDA

17% 9%

Asset Profile & Capital Profile

35

14% 11% 11.0% 4.0% 60%

Short term loan Long term loan Account Payable Other Debt Equity 14.4% 19.7% 17.2% 15.0% 14.8% 14.4% 0.0% 10.0% 20.0% 30.0%

2014 2015 2016 2017 2018 3Q19

17.1% 18.7% 18.5% 17.6% 18.5% 18.5% 0.0% 10.0% 20.0% 30.0%

2014 2015 2016 2017 2018 3Q19 3Q19 Equity = 3,732 MB, Debt = 2,531 MB 3Q19 Asset = 6,263 MB 8% 20% 64% 8% Cash Account Receivable & Accrued Revenue PP&E Others

3Q19 3Q19

DE 0.68

ROE CAPTIAL STRUCTURE ASSET STRUCTURE ROA

PIP IPELINE PROJECTS

Pipeline Project

November r 2018 Ju July ly 2018

% Progress

• Prachin Buri
• Apprx 12,000 sq.m.
• OPD : 15 Rooms
• IPD : 59 Beds (Phase 1)

: Total 120 beds

• Target: A-Class patient

Chularat 304 International Hospital

100% 100%

% Progress

Ruampat Chachoengsao Hospital (RPC)

• Chachoengsao
• Apprx 16,000 sq.m.
• OPD : 15 Rooms (Phase I)
• IPD : 59 Beds (Phase I)

: Total 180 beds

• Target: A-Class patient
• Samutprakan
• Apprx 2,000 sq.m.
• High Energy Radiation (LINAC)
• IPD : 10 Beds
• Target: A-class patient

Suvarnabhumi Cancer and Radio Therapy Center (Cancer center)

% Progress

10%

2020

36

Chularat 304 Hospital

37

RPC Hospital

38

CRS & RECOGNITION

CSR

10,000 Heart Heroes for safe life #3rd year

39

CSR (Cont.)

Bring good health to the community

40

Thailand’s Top Corporate Brand 0 9

41

Our Pride

42

JCI & HA Accreditation

Corporate Governance

4 consecutive years since 2016

APPENDIX

Appendix: Abbreviation Table

AdjRW Adjusted Relative Weight CAGR Compound Annual Growth Rate CH Chularat Hospital HA Hospital Accreditation IPD In-Patient Department 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

43

Chularat Hospital Public Company Limited

Thank you

For more information, please contact : ir@chularat.com

095 370 9059