Investor Presentation October 2018
Vision & Milestones “To be provider of extensive medical resources and network of hospitals with qualified standards, using cutting- edge medical innovation, gaining patients and families’ trust, and providing healthcare services at an affordable price” Acquired BMP shares for Rehab hospital project Signed JV for Ar Yu PPP agreement International to provide PPP agreement Hospital in Registered hospital Thonburi Invested in for Koh Lan Myanmar Hospital Invested in as a public Invested in Modular management CMU Restructure for Pattaya City started Ubonrak company Invested in Rajyindee Software and prepare limited Hospital operation Hospital Dental Siam Hospital Expertise for IPO 2016 2017 1997 2003 2009 1977 1991 1994 2012 1996 1993 2001 2011 2014 2015 Invested in Invested in PPP agreement Invested in Opened Signed JV for Sirivej to provide Thonburi Thonburi 2 Rajthanee Welly Hospital Hospital Realty hospital Hospital Heart Hospital in China management centers and for Phuket Premier Home Provincial Health Care Hospital Registered Capital (THB mn) 20 60 300 600 764 849 1976 2016 2017 2 1980 1991 2013
THG Businesses Hospital Business Healthcare Solution Provider Other business 2017 Revenue: THB 26 mm (0.4%) 2017 Revenue: THB 414 mm (6.3%) 2017 Revenue: THB 6,171 mm (93.3%) Domestic / International Hospital Software Development Home Healthcare • 7 Hospitals • Develop software to support internal • Medication services to patient’s • Registered Bed: 1,266 beds departments and connect with other home ex. check up, treatment, OPD Rooms: 220 Rooms networks such as Social Security rehabilitation Office, National Health Security Management Service Office, The Comptroller’s General Senior living • 2 Hospitals and 1 Medical Center in • Jin Wellbeing County, The mixed-use Department Thailand development to provide services • MOU for consultancy in Asia Project Development for Healthcare & needed by senior • Thonburi Health Village, to serve Medical Services Excellent Center Management Service • Land Pipeline: 1,931 Rai various segments • 4 Heart Centers under management • Book Value: THB 1,811 mm Dental Supplies Retailer & Drug Stores Step-Down Care • 10 Drug stores • A rehabilitation center for patients • Exclusive distributor for dental who do not need close watch from supplies: 30 brands doctors • Low-tone care for OPD patients 3
Growth prospect Thonburi • Expected operation in 4Q18 Bamrung Muang Jin Wellbeing • Expected units transfer in 4Q18 County Hospital & • Expected growth from new opportunities excellence both domestically and internationally center Hospital & management • excellence Higher margin from • Organic growth from volume, price and asset-light model center medical intensity, with capacity expansion management • Potential growth from Thonburi Thungsong • Strong core business Hospital and from Thonburi Health Village – with stable growth Pracha Uthit in 2019 onwards Domestic hospital & Domestic business hospital & business • Ramping up after grand Welly Hospital opening • Less shared loss due to more patients volume Ar Yu Hospital • Expected operation in 3Q18 with loss shared to THG in first year 2017 2018 onwards 4
Hospital Business - overall 5 Key Excellence Centers Welly Hospital (China) Ar Yu International Hospital (Myanmar) Heart Center Women’s Center Ubonrak Thonburi Hospital • Thonburi Hospital • Thonburi 2 Hospital Sirivej Hospital Chantaburi Heart Center Orthopedic Center Neuroscience Center • Bangplee Hospital • Phatra Hospital Pattaya City Hospital • Thonburi 2 Hospital • Phattalung Hospital Gastrointestinal and Liver Center Rajyindee Hospital Phuket Provincial Hospital Hospital (Thailand) 5 Hospital (overseas) 2 Hospital Management 2 Hospital Accreditation ISO Excellent Center Management 4 of Thailand (HA) Network Hospital 9 5
Hospital Business – Hospitals in Thailand • THG has a strong foothold in Bangkok with flagship brand, Thonburi Hospital, trusted by patients for 40 years. • Upcountry hospitals are in strategic locations with high potential for patient referrals to hospitals in Bangkok. • This core business has provided stable growth and become a foundation to expand to related business. Location: Bangkok Registered beds: 435 Location: Bangkok Registered beds: 95 Location: Ubonratchathani Location: Songkla Location: Chantaburi Registered beds: 196 Registered beds: 90 Registered beds: 100 6
Hospital Business – Positioning benchmark Prestigious public medical schools High end, international focused Super tertiary High end Medical sophistication Thonburi Hospital Thonburi Bamrungmuang Medical Center High end, Tertiary international focused Thonburi 2 Hospital Mid to high end hospitals Secondary High end, Mid to lower end hospitals international focused Lower end, SSO Price per disease THG has capability and capacity for sophisticated medical services but at more affordable price. 7
Hospital Business – Thonburi and Thonburi 2 Hospital Thonburi Expansion Plan Strategy • OPD - Increase and develop excellence centers to meet demand of target group - Thonburi 2 aims to increase capability to provide tertiary care services. - Space management for patients’ Area Completion Total Details Capacity convenience and satisfaction (sq.m.) Year Investment - Expand customer base with continuous 10 fl car park 8,820 150 cars 2020 120MB marketing activities with insurance, building corporate and foreign customers. 8 fl OPD building 14,900 50 OPD Rooms 2020 740MB Thonburi 2 Expansion Plan • IPD - OPD building expansion can draw more patients and potentially turn to IPD admission. - Step-down care can help free up beds to support more complexed cases. • With our direction to provide more value Area Completion Total Details Capacity (sq.m.) Year Investment at affordable price, potential revenue increase should be mainly from more 3 fl IPD & OPD 15 OPD Rooms/ 12,000 2020 435MB sophisticated treatments. building 52 Beds 8
Thonburi Thungsong Hospital Project On 9 April 2018, THG’s Board of Directors approved the investment in 55-60% shares Thanarad Thungson Co.Ltd., the developer of Thonburi Thungsong Hospital, within THB360mn. As of September 2018, THG holds approx. 43% shares of Thanarad Thungsong. Details Location Tungson-Wiangsa Highway, Nakorn Sri Tammarat Positioning Secondary care Target Elderly, middle class, insurance client, ER patients Registered beds 200 beds Progress > 50% Expected operations In 2019 9
Hospital Business – International hospitals Strategy for investment in international market • Selective increase in market with promising growth potential • Leverage on strong partners • Start from initial partnership, small investment or management contract until proven success Asia Continent Ar Yu International Hospital Welly hospital Location: Yangon, Myanmar Location: Wei Hai, Shandong region Project: 200-bed private hospital which Project: 130-available-bed private hospital is the first with international standard in an area mostly populated by state Partners: GMP 50%, THG to be 40%, hospital AMS 10% Grand opening in 4Q17 - Ga Mone Pwint: Leader in brand Partner: THG 58%, WEGO 42% developer, property & real estate, hotel, Leading manufacturer of medical devices in retail, and trading business in Myanmar China - Aryu Ananta Medical Services: A group of leading local doctors 10
Welly Hospital • The hospital is ramping up patient volume and revenue, aiming for EBITDA break even in 2019. • In 2Q18, OPD patients are approx. 200/day and IPD are approx. 60-70/day. • Welly Hospital continues to develop service standard with expertise, knowledge sharing and service training from THG. Revenue 1H2017 1H2018 OPD Revenue IPD Revenue OPD sequences IPD patient days 11 1H2017 1H2018 1H2017 1H2018
Ar Yu International Hospital • The hospital already had a soft launch, starting the operation in September. Plan for 1 st phase: • 20 OPD rooms, 8 ER beds, 2 ORs and 3 IPD wards • Key success factors: - Modern facilities and equipment - well-known Myanmar medical staff - Thai hospitality service standard - patient safety focused and gear for JCI Staff training CT Scan OR 12
Ar Yu International Hospital Lobby Escalator Lift lobby Pediatric Clinic EENT Clinic 13
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