Chularat Hospital Public Company Limited Presentation for 2Q2019 - - PowerPoint PPT Presentation

Chularat Hospital Public Company Limited

Presentation for 2Q2019

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

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2

749

IPD BEDS

9

HOSPITALS

4

CLINICS

747

ABOUT OUR COMPANY

DOCTORS

146

OPD ROOMS

6

EASTERN PROVINCES

Pri rivate Hospital*

* Established since 1986 (2529 BE) by Plussind Family

3

Branch Summary

Update : 2Q19

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 46 193 Chularat 5 Hospital 1994 5 26 Chularat 7 Clinic 1993 1

• Chularat 8

Clinic 1993 2

• Chularat 9 Airport

Hospital 1993 28 139 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 10 59 146 146 749 749 Total

5

Business Profile

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

245 139 247 118 58 31 33 24

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 medical services with specialists 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

• 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..

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

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

17

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

18

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

19

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

20

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 21

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

22

5% 32% 33% 30%

(63 : 37)

2018

4,407 MB

A-Class IPD A-Class OPD

NHSO

SSO 15% 7% 14% 15%

NHSO 6% SSO 31% A-Class OPD 32% A-Class IPD 31% NHSO 7% SSO 31% A-Class OPD 32% A-Class IPD 30%

1,179 MB

(62 : 38)

2Q19

Revenue Breakdown by Customer group

1,039 MB

(63:37)

2Q18

318 349 336 380 327 366 58 84

• 200

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

2Q18 2Q19

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

2Q2019 Overview

Unit: Million Baht

43.92% 11.63% 13.31% 9.64%

23

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

• Expansion area in existing

hospital

• Opened New 2 branches

hospital (CH304, RPC)

• Volume increased

24

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

218,885 437,456 235,982 474,361 2Q18 2Q19 6M18 6M19

336 679

380 772 2Q18 2Q19 6M18 6M19

13.3% 13.8% 7.8% 8.4%

A Class Patients – IPD

611 744 902 1,016 1,310

2014 2015 2016 2017 2018

25

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 318 629 349 720

14,000 29,180 15,790 33,166 2Q18 2Q19 6M18 6M19 2Q18 2Q19 6M18 6M19

14.4% 9.64% 12.8% 13.6%

327 691 366 755

1,085 1,132 1,315 1,452 1,409

2014 2015 2016 2017 2018

326,783 345,477 396,676 402,018 421,700 418,013 432,640

2014 2015 2016 2017 2018 2Q18 2Q19

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

26

SSO – Revenue (MB)

SS SSO revenue in increased due to

• Actual payment from customer

complaint and discharge type was over the accrual amount

• The increasing number of

registered member

Unit : Million Baht 2Q18 2Q19 6M18 6M19

11.63% 9.15% 3.5%

Revenue Breakdown by Branches

Chularat3 42% 42% Chularat9 20% 20% Chularat11 16% 16%

• th
• thers

22% 22%

Chularat3 Chularat9 Chularat11

• thers

1,179 MB

2Q19

Revenue Breakdown by Branches : 3 months

27

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

• th
• thers

17% 17%

1,039 MB

2Q18

Major contributors : Chularat3, Chularat9, Chularat11

10% 8% 5% 46% Growth (Y (YoY)

Revenue Breakdown by Branches

Chularat3 42% 42% Chularat9 21% 21% Chularat11 16% 16%

• th
• thers

21% 21%

Chularat3 Chularat9 Chularat11

• thers

2,407 MB

6M19

Revenue Breakdown by Branches : 6 months

28

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

• th
• thers

17% 17%

2,119 MB

6M18

Major contributors : Chularat3, Chularat9, Chularat11

13% 4% 6% 47% Growth (Y (YoY)

Unit : ‘000 Head

OPD Utilization Rate

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

Basis: Yearly

29

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

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

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 71.3% 68.9% 69.5% 70.0% 65.6% 62.1%

129R 126R 132R 143R

Unit : ‘000 Head

146R 144R

Unit : Beds-Day

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

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

599B 686B

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

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 376B

81.7% 86.7% 76.2% 66.5% 65.5%

649B

Basis: Yearly Basis: Quarterly

Unit : Beds-Day

749B

30

388B 749B

Financial Highlights : 3 months

1,039 325 282 178 1,179 313 235 123

Total l revenue Gross profit it margin EBITDA NI NI 2Q18 2Q19

Growth (YoY)

Unit: Million Baht 31.2% 26.9% 17% 26.52% 19.8% 10%

31

NI

4% 17%

Total Revenue Gross profit EBITDA

13% 31 %

Financial Highlights : 6 months

2,119 692 590 371 2,407 687 538 302

Total l revenue Gross profit it margin EBITDA NI NI 6M18 6M19

Growth (YoY)

Unit: Million Baht 32.7% 27.7% 17.4% 28.6% 22.2% 12.5%

32

NI

1% 9%

Total Revenue Gross profit EBITDA

13% 19%

Asset Profile & Capital Profile

33

13% 10% 10% 4% 62%

Short term loan Long term loan Account Payable Other Debt Equity 14.4% 19.7% 17.2% 15.0% 14.8% 12.5% 0.0% 10.0% 20.0% 30.0% 2014 2015 2016 2017 2018 2Q19 17.1% 18.7% 18.5% 17.6% 18.5% 16.0% 0.0% 10.0% 20.0% 30.0% 2014 2015 2016 2017 2018 2Q19

2Q19 Equity = 3,691 MB, Debt = 2,238 MB 2Q19 Asset = 5,929 MB

7% 19% 66% 8%

Cash Account Receivable & Accrued Revenue PP&E Others 2Q19 2Q19

DE 0.61

ROE CAPTIAL STRUCTURE ASSET STRUCTURE ROA

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

34

Chularat 304 Hospital

35

RPC Hospital

36

CSR

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

37

CSR (Cont.)

Bring good health to the community

38

Chularat Hospital Public Company Limited

Thank you