Chularat Hospital Public Company Limited Presentation for 4Q2019 - - PowerPoint PPT Presentation

Chularat Hospital Public Company Limited

Presentation for 4Q2019

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

822

DOCTORS

149

OPD ROOMS

6

EASTERN PROVINCES

* Established since 1986 (2529 BE) by Plussind Family

1

Plussind 38% Panyapol 19% Others 43%

Service Cluster

245 139 247 118 54 34 33 28

CH3 CH9 CH11 Others

IPD Beds OPD Rooms

• CH1

CH1

• CH2

CH2

• CH5

CH5

• CH7

CH7

• CH8

CH8

• CH

CH12

• CH

CH Ch Cholvaej

• CH

CH Rayong

• CH

CH304

• RPC

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

2

Branch Summary

Update : 4Q19

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 42 193 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 59 149 149 749 749 Total

Corporate Structure

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.

70% 64.58% CH7, CH8, CH9 CH11, CH12 CH Cholvaej RPC CH304 CH Rayong

Update : 4Q19

4

Ruampat Mae Sot International Co., Ltd.

CH Mae Sot 80%

• 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”

Board of Directors

5

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

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

• ver 25 years of proven track record.”

6

• 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

“ Our lo logis istics netw twork su support rts s tim timely preventive and curative cares.“

7

Service Area Map

8

KeyMilestones

16 May 2013

• 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

9

2015

• Asia’s 200 Best Under A Billion for Chularat Hospital Group
• HA Certificate : Step 2, Step 3 for Chularat 9 Airport and

Chularat 11 International Hospitals.

IPO listing in Stock Exchange

• f

Thailand

• 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 Hospital.

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

2017 2018 2016

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

10

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

In Investment in in Ruampat Mae So Sot t In Internatio ional l Co Co.,L .,Ltd

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

11

Revenue from Social Security System (New)

Revenue Structure = (1) + (2) + (3) Fixed Payment Statistics Per Special Medical Services IP IPD Su Subje ject to to Nat ationwide Budget 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 Bas asic Pay ayment (F (Fixed) 1,6 ,640 Bab abt/head ad/y /year* ( 1,500 Bt/head/year)

* Effective date: 1 Jan 2020 ** Relative Weight, a measure of the average cost of caring for individual patients.

12,0 ,000 Bah aht/R /RW (A (Avg.) 746 Bah aht/h /head/year* ( 640 Baht/head/year)

12

• Diabetes
• Hypertension
• Stroke
• Chronic renal failure (CRF)
• Hemodialysis
• Chemotherapy
• Open heart surgery
• Brain surgery
• Heart disease

Our Services



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

13

Areas of Expertise

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

14

Areas of Expertise

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

15

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 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

16

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 *

17

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

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 18

FIN INANCIAL HIG IGHLIGHTS

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

2015 2016 2017 2018 2019

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

13.6%

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 (%)

Financial Performance VS Patient Growth

Unit: Million Baht

Net Profit Margin

17.1% 15.4% 14.5% 14.3%

19 CAGR 6.99% CAGR 13.12%

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

Revenue Breakdown 2015-2019 By Customer group

• Hospital service revenues increased significantly from 2015 to 2019 with CAGR of 13.12%
• Revenue from A-Class still dominated revenues (> 50%) from other sources.

Service Revenue Structure

7% 30% 32% 31%

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%

20

NHSO 8% SSO 27% A-Class OPD 33% A-Class IPD 32%

Unit: Million Baht

NHSO 6% SSO 33% A-Class OPD 33% A-Class IPD 28%

1,328 MB

(65 : 35)

4Q19

Revenue Breakdown by Customer group

1,139 MB

(61:39)

4Q18

318 422 377 444 377 361 67 101

• 200

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

4Q18 4Q19

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

4Q2019 Overview

21

51.8% 4.1% 17.7% 32.4%

16.6%

1,310 1,581 1,445 1,654 1,409 1,578 243 353

• 1,000

2,000 3,000 4,000 5,000 6,000

2018 2019

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

Unit: Million Baht

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

5,166 MB

(63 : 37)

2019

Revenue Breakdown by Customer group

4,407 MB

(63:37)

2018

2019 Overview

45.7% 11.9% 14.5% 20.7%

22

17.2%

A Class Patients - OPD

Total l A-Cl Class revenue up 17% due to

• Service area expansion in

existing hospitals.

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

OPD – Revenue (MB) OPD – Visiting Number (VN)

Unit : Million Baht

Unit : Head

23

873 1,093 1,216 1,445 1,654 377 444

2015 2016 2017 2018 2019 4Q18 4Q19 17.7% 14.5%

621,969 743,666 804,167 899,551 980,304 223,064 247,433

2015 2016 2017 2018 2019 4Q18 4Q19 10.9% 9%

A Class Patients – IPD

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

Unit : Million Baht

Unit : Head

24

39,861 50,268 52,256 61,050 72,477 14,591 18,848

2015 2016 2017 2018 2019 4Q18 4Q19 29.2% 18.7%

744 902 1,016 1,310 1,581 318 422

2015 2016 2017 2018 2019 4Q18 4Q19 32.4% 20.7%

1,132 1,315 1,452 1,409 1,578 377 361

2015 2016 2017 2018 2019 4Q18 4Q19

For 3 months :

• Actual payment for IPD

( High Cost Care ) was less than the accrual amount. For 12 months :

• Increasing number of registered

members.

• Actual payment for Customer

Complaint and Discharge type was

• ver the accrual amount.
• Actual payment for OPD

(26 Chronic Diseases ) was over the accrual amount.

• Actual payment for IPD

( High Cost Care ) was less than the accrual amount.

Unit : Head

• Number of insured persons = 13.3 million ( Nov. 2019, SSO) by law article #33 [obligation] and #39 [voluntary]
• Approx. Unemployment rate = 1% ( Dec. 2019, Labor Market Research Division)

SSO – Registered Member (Average )

SSO Patient

SSO – Revenue (MB)

Unit : Million Baht

2.9%

25

4.1%

345,477 396,676 402,018 421,700 435,537 427,097 439,810

2015 2016 2017 2018 2019 4Q18 4Q19 11.9% 3.3%

Revenue Breakdown by Branches

Chularat3 41 41.8% Chularat9 18 18.7% Chularat11 14 14.9%

• th
• thers

24 24.6%

Chularat3 Chularat9 Chularat11

• thers

1,328 MB

4Q19

Revenue Breakdown by Branches : 3 months

Chularat3 43 43.8% Chularat9 20 20.3% Chularat11 16 16.0%

• th
• thers

19 19.9%

1,139 MB

4Q18

Major contributors : Chularat3, Chularat9, Chularat11 = 76% ( 4Q18 = 80% )

7.4% 8.6% 11.3% 44.1% Growth (Y (YoY)

26

16.6%

Revenue Breakdown by Branches

Chularat3 41. 41.4% Chularat9 19. 19.6% Chularat11 15 15.9%

• th
• thers

23 23.2%

Chularat3 Chularat9 Chularat11

• thers

5,166 MB

2019

Revenue Breakdown by Branches : 12 months

Chularat3 44 44.6% Chularat9 20 20.8% Chularat11 16 16.6%

• th
• thers

18 18.1%

4,407 MB

2018

10.3% 12.3% 8.9% 50.1% Growth (Y (YoY)

27

17.2%

Major contributors : Chularat3, Chularat9, Chularat11 = 77% ( 2018 = 82% )

Unit : ‘000 Head

OPD Utilization Rate

• 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

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

150R

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

129R 126R 132R 143R

Unit : ‘000 Head

146R 144R

28

147R 149R

Unit : Beds-Day

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

599B 686B

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

599B 749B

• Max. capacity = Beds x 365 days

IPD Utilization Rate

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

749B 388B 749B 376B 749B

29

749B

Financial Highlights : 3 months

1,139 320 206 112 1,328 354 252 134

Total l revenue Gross profit it margin EBITDA NI NI 4Q18 4Q19

Growth (YoY)

Unit: Million Baht

28.1% 18.1% 9.8% 26.7% 18.9% 10%

NI

10.6% 22.3%

Total Revenue Gross profit EBITDA

16.6% 19.6%

30

Financial Highlights : 12 months

4,407 1,335 1,036 634 5,166 1,537 1,188 705

Total l revenue Gross profit it margin EBITDA NI NI

2018 2019

Growth (YoY)

Unit: Million Baht

30.3% 23.5% 14.3% 29.7% 23% 13.6%

NI

15.1% 14.7%

Total Revenue Gross profit EBITDA

17.2% 11.2%

31

Asset Profile & Capital Profile

13% 11% 10% 4% 62% Short term loan Long term loan Account Payable Other Debt Equity

19.7% 17.2% 15.0% 14.8% 14.9% 0.0% 10.0% 20.0% 30.0%

2015 2016 2017 2018 2019

18.7% 18.5% 17.6% 18.5% 19.4% 0.0% 10.0% 20.0% 30.0%

2015 2016 2017 2018 2019

2019 Equity = 3,895 MB, Debt = 2,371 MB 2019 Asset = 6,266 MB 7% 17% 67% 9% Cash Account Receivable & Accrued Revenue PP&E Others

2019 2019

DE 0.61

ROE CAPTIAL STRUCTURE ASSET STRUCTURE ROA

32

PIP IPELINE PROJECTS

Pipeline Project

33

• Samutprakarn
• Apprx 2,000 sq.m.
• High Energy Radiation (LINAC)
• IPD : 10 Beds
• Target: A-class patient
• CAPEX 250 MB

Suvarnabhumi Cancer and Radio Therapy Center (Cancer center)

Pipeline Project

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

Chularat Mae Sot International Hospital

34

CRS & RECOGNITION

CSR

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

35

CSR (Cont.)

Bring good health to the community

36

Thailand’s Top Corporate Brand 2019

37

Our Pride

JCI & HA Accreditation

Corporate Governance

4 consecutive years since 2016

38

APPENDIX

Appendix: Abbreviation Table

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

Chularat Hospital Public Company Limited

Thank you

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

095 370 9059