MEETING PR9 2Q2 Q2019 019 Resu sult lts August 27, 2019 Agenda - - PowerPoint PPT Presentation

ANALYST MEETING

“PR9 2Q2 Q2019 019 Resu sult lts”

August 27, 2019

PR9 Sum ummary mary and d Updat pdates es Projec

• ject

t Upd pdates ates

2 3

Ope perational rational Statisti atistics cs & Fin inancial ancial Performance formance

4

Agenda

Overview rview

1

PR9 Sum ummary mary and d Updat pdates es Projec

• ject

t Upd pdates ates

2 3

Ope perational rational Statisti atistics cs & Fin inancial ancial Performance formance

4

Agenda

Overview rview

1

VI VISION SION & MI & MILES LESTONES TONES

THB 200 mm Rights ts offerin ering g 1st

st privat

ate e hospita tal l with h 64 S Slice ce CT Scan Implementati lementation

• n of

Pharm rmacy acy Robot Signed ed Kidney ey refer erra ral l MOUs Started rted new buildi ding ng constructio truction 1st

st privat

ate e hospita tal l with 640 S Slice ce CT Scan 500 K Kidney ey Transp nsplan lant t Cases Started rted using 4D U Ultra rasou

• und

nd

2016 2016 2018 2018 2017 2017 2013 2013 2004 2004 1992 1992 2001 2001 2005 2005

Started rted hospita ital

• pera

ratio tion

The he Mos

• st

t Trusted usted State te of

• f the

he Art Heal ealthc thcare are Pr Prov

• vider

ider Providing iding the Best st Healthcare althcare Solut ution ion for Prevention ntion and Treatm eatment nt that at are Valuabl luable for Money by Profess essional

• nal Using

ng State te of the Art t Technology logy

Mission Values ues Vision

Accoun unta tabilit bility , Colla laborative borative Creativ ativity ity , Custo stomer mer Centric ric with th Profess essional

• nalism

ism

Listed ed in the Stock k Exchang ange e of Thailand land

2019 2019

W9 Wellness ess Center ter Joint nt Care re Center ter

Overview

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

Mind Center X Breast Clinic 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

2010 10/ / 2013 13/ / 2016 16 – JCI 3rd accredited 2016 16 - CCPC: Kidney 2016 16 - CCPC: Diabetes medical care 2000 00 - ISO 9001:1994 2003 03 - ISO 9001:2000 2004 04/ / 2007 07 - HA Level 3

− 2017

17 : 640-sli lice ce CT Scan

− 2016

16 : Pharmac macy Robo bot t

− 2005

05 : 64-sli lice ce CT Scan

− 2004

04 : 4D Ultra trasound

• und

2017: Best Utilization Award AXA Provider Award 2019: Thailand Top Company Awards 2019 (Healthcare Sector) Business+ magazine & University of the Thai Chamber of Commerce 2017: Fertility Service Provider of the Year Global Health and Travel Awards 2017

W9 Wellness Center Joint Care Center

2018: Thailand Top Company Awards 2018 (Healthcare Sector) Business+ magazine & University of the Thai Chamber of Commerce

PR9 Key Strategies

Top

• p Line

e Initiatives itiatives

 Hospita ital l Network work Expansion

• n and Medica

ical l Cooper perat atio ion  Increas rease e Corp rpor

• rat

ate e and Insura rance nce Covera rage ge  Internat ernatio ional nal Patien ents Expansi nsion

 21 s

step down n ICU beds

 77 n

norm rmal l ward rd beds

 24 I

ICU/CC /CCU beds

 21 n

norm rmal l ward rd beds

 21 n

norm rmal l ward rd beds  Levera rage ge experti rtise e to build d new customer mers base  Enhance nce medica ical l treat atment ment qualit lity in the long g term

Scop

• pe

e and and Scale le Expansion pansion

 Comp

mprehen rehensiv ive e medica ical l check ck- up prog

• gram

ram

 Joint

nt Care Center

 Wellne

ness Center

 Pain

n & Rehab Center

 Allergy

rgy Center

Margin in Expansion pansion

 Increa ease e capa pacity city utiliz ization tion which ich will resul ult in lower er unit t cost  Increa ease e servic vice e inten ensity ity  Digita gital Hospita pital Trans nsfo forma mation tion

Revitali alizi zing g Brand d Awaren reness ess

2018 2018 2019E 2019E 2020E 2020E 2022E 2022E 2021E 2021E

Where we are today Where we want to be New Build ldin ing (Wellne llness ss) Renovat novated ed Exist xisting ing Build lding ng (Chro hronic nic) Offer Comprehensive Medical Services Health Promotion/ Disease Prevention / Curative Medicine / Rehabilitation Recognized complex medical treatments providers

Health Promotion Disease Prevention Curative Medicine Rehabilitation

Leverage expertise to build new customers base

• Joint Care Center
• Wellness Center
• Pain & Rehab Center
• Allergy Center

 166 188 212 233 254 59 59 59 59 2018 2019 2020 2021 2022 Existing Building 2

166 166 247 247 271 271 292 292 313 313

Sca cale e an and d sco cope pe of serv rvic ices es exp xpan ansion sion

A B

PR9 Sum ummary mary and d Updat pdates es Projec

• ject

t Upd pdates ates

2 3

Ope perational rational Statisti atistics cs & Fin inancial ancial Performance formance

4

Agenda

Overview rview

1

50.4 .4 35.7 .7 102.6 .6 121.8 .8 7.8% 5.2% 7.9% 8.8%

• 2
• 2.0%

0% 3.0% 8.0% 13.0 .0% 0.0 0.0 50.0 .0 100.0 .0 150. 150.0 200.0 .0 2Q20 Q2018 2Q20 Q2019 1H20 H2018 1H20 H2019 98.2 .2 83.9 .9 199.8 .8 227.4 .4 15.3 .3% 12.3 .3% 15.4 .4% 16.4 .4%

• 5
• 5.0%

5.0% 15.0 .0% 25.0 .0% 0.0 100. 100.0 200.0 .0 300.0 .0 400.0 .0 2Q20 Q2018 2Q20 Q2019 1H20 H2018 1H20 H2019 635.6 670.7 1277.9 1365.9 0.0 500.0 .0 2Q20 2Q2018 2Q20 2Q2019 1H20 1H2018 1H20 1H2019

Fi Financial ncial Summary mmary

 Medi

dica cal l revenue venue in 2Q2019 019 of Baht t 670.7 7 million lion , 5.5% % yoy increas ease.

• e. This

is was mainly ly bec ecau ause se of an increase ease in out ut- patient tient revenue venue by 6.6%. %. The e increme ementa ntal l in out ut-pat patient ient revenue enue was mainly y beca cause use of an increas ease e in insu surance ance & corporat porate e patients tients which grew w 19.9% % while e international ernational patients tients also so grew w 14.8% 8% resu sultin lting g from m marke keting ting campaign paign and marke ketin ting g activitie ivities. s.

Medica ical Revenue ue EBITDA Net Profit fit

 EBITDA

DA in 2Q201 019 9 of Baht t 83.9 million lion or 12.3% % EBITDA DA margi gin, a 14.6% % decr creas ease e ended ded 30 June e 2018 EBITDA ITDA of Baht t 98.2 millio ion or 15.3% % EBITDA DA margin in.

 Net

t profi fit t in 2Q2019 019 of Baht t 35.7 million lion or 5.2% % of net t prof

• fit

it margi gin n that t decr creasing easing 29.2% % from m Baht 50.4 millio ion or 7.8% net t profi fit t margi gin n in 2Q2018. 18.

111.5 .5 16.4% 63.2 9.3% 18.4% 254.9 .9 149.4 .4 10.8%

Interna ternational tional Marketing eting : Myanmar , China , Cambodia

Operational Update

Kidney ney Transpla nsplant nt Institu stitute te Hospital Network Visit / Kidney Transplant Cases and Waiting List Digital ital Hosp spital ital Trans ansformation: formation: OPD Appointment application / Mobile IPD Doctor / In room service Re Revitalizing talizing Brand nd Awa wareness: eness: New Website

2 1 3 4

Hospital Network MOU

1

W9 WELLNESS CENTER

Soft opening : 4th July 2019

PR9 JOINT CARE CENTER

Grand opening 7th August 2019

PR9 Pain Management and Wellness Center

• Comprehensive clinical programs for both pain and

wellness program Wellness program Pain treatment

Yoga Fitness

PR9 Pain Management and Wellness Center

Hydrotherapy Ice lab

PR9 Pain Management and Wellness Center

Digital Hospital Transformation

Source : Company data

OPD Appointment application Mobile IPD Doctor In room service

Real time Doctor Appointment Medication safety Improve customer experience

2

Digital hospital transformation : Queue Management System

www.Praram9.com

Re Revitalizing talizing Brand nd Awa wareness eness : New w We Websit site

3

INTERNATIONAL MARKETING

Praram aram 9 Hospit pital al Office e (Yan angon) gon) First rst PR9 Office e in China (Zhej ejiang iang) Cambodia bodia

4

PR9 Sum ummary mary and d Updat pdates es Projec

• ject

t Upd pdates ates

2 3

Ope perational rational Statisti atistics cs & Fin inancial ancial Performance formance

4

Agenda

Overview rview

1

Projects in Pipeline

(1) As of 30 September 2018

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

Construction struction Progress gress – Bu Buildi lding ng 2

Cons nstructi truction

• n Progr

gress ess – Bu Build lding ing 2 : Moc

• ck-up

up OPD PD

Cons nstructi truction

• n Progr

gress ess – Bu Build lding ing 2 : Moc

• ck-up

up IPD PD

Constructio nstruction n Pro rogress gress : B : Bui uilding lding 3

Constructio nstruction n Pro rogress gress : B : Bui uilding lding 4 4 – Nu Nurse se Co Condo ndomin minium ium

PR9 Sum ummary mary and d Updat pdates es Projec

• ject

t Upd pdates ates

2 3

Ope perational rational Statisti atistics cs & Fin inancial ancial Performance formance

4

Agenda

Overview rview

1

Revenue Breakdown

349 353 388 405 374 376 702 750 293 283 323 308 321 295 576 616 11 6 5 10 9 9 17 18 1Q18 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 1H2018 1H2019 OPD IPD Other revenue Unit: t: THB mm

Total al Re Reven enue

(45%) (55%) (44%) (56%) (46%) (54%) (45%) (55%) (43%) (57%) (46%) (54%) (45%) (55%) (45%) (55%)

653.3 642.0 716.0 722.3 704.3 679.8 1295.3 1384.1

Total Revenue +5.9% Medical Revenue +5.5% OPD +6.6% IPD +4.2%

543.60 561.26

Inter, 91.97 Inter, 109.44 2Q18 2Q19 Thai Inter

+3.2% +19.0%

To Total al Re Revenue venue : Q2 2018,2019 18,2019

Unit: it: THB mm

Total l Revenue

497.0 507.8 115.1 132.9 23.5 30.0

2Q18 2Q19

Self Pay Insurance Contract Comp.

27.7% +2.2% +15.5%

4% 18% 78% 4% 20% 76%

352.6 376.0 283.0 294.7 6.4 9.1 2Q18 Q18 2Q19 Q19 OPD IPD Other rev. Total revenue

45% 55%

By P Payor Revenue

by Nationa tionality ty Revenu evenue 44% 56% 16% 84% 14% 86%

642.0 679.8

Total Revenue +6.9% Medical Revenue +6.9% OPD +6.9% IPD +6.8%

1,101.4 1,150.7

176.5 215.2

1H18 1H19 Thai Inter

+4.5% +21.9%

To Total al Re Revenue venue : 1H H 2018 018,2019 ,2019

Unit: it: THB mm

Total l Revenue

984.2 1,035.4 238.9 270.4 54.8 60.1

1H18 1H19

Self Pay Insurance Contract Comp.

9.7% +5.2% +13.1%

4% 19% 77% 4% 20% 76%

701.7 750.3 576.3 615.6 17.3 18.2 1H18 1H19 OPD IPD Other rev.

45% 55%

By P Payor Revenue

by Nationa tionality ty Revenu evenue 45% 55% 14% 86% 16% 84%

1295.3 1384.1

Key Operational Statistics Q2 2019

Unit: ’000 visits

OPD Visits

102 102 103 103 112 112 115 115 105 105 106 106 1Q20 Q2018 2Q20 Q2018 3Q20 Q2018 4Q20 Q2018 1Q20 Q2019 2Q20 Q2019

OPD

+3.4% % (YOY)

IPD Average Daily Census (ADC)

111 96 117 105 106 91 1Q20 1Q2018 2Q20 2Q2018 3Q20 3Q2018 4Q20 4Q2018 1Q20 1Q2019 2Q20 2Q2019

IPD IPD

• 5.2%

2% (YOY)

Oc Occupan pancy cy Rate te base se on ava vaila ilable ble beds : W s : Ward d , IC ICU-CCU CCU

125 125 142 142 142 142 142 142 142 142 142 142 24 24 24 24 24 24 24 24 24 24 24 24 74.3% 55.9% 70.0% 61.5% 61.4% 52.4% 73.6% 68.3% 74.2% 74.3% 77.8% 72.7% 0% 10% 20% 30% 40% 50% 60% 70%

• 30

20 70 120 170 220 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Ward ICU-CCU Ward Occupancy Rate ICU-CCU Occupancy Rate

197.9 186.9 227.1 225.1 224.8 181.5 384.8 406.3 30.8 .8% 29.4 .4% 32.0 .0% 31.6 .6% 32.3 .3% 27.1 .1% 30.1 .1% 29.7 .7%

1Q2 1Q201 018 2Q2 2Q201 018 3Q2 3Q201 018 4Q2 4Q201 018 1Q2 1Q201 019 2Q2 2Q201 019 1H20 1H2018 18 1H20 1H2019 19

Gross Profit Gross Profit Margin

Profitability 2Q2019 & Half Year

Unit: t: THB mm

Gross Profit EBITDA Net Profit

Unit: t: THB mm Unit: t: THB mm

142.2 82.8 3.6%

• 11.5%
• 19.7%

254.9

• 16.4%

63.2

• 9.3%

111.5

• 18.4%
• 10.8%

197.0

• 29.4%

421.8

• 30.9%

149.4 101.6 98.2 145.9 25.8 143.4 83.9 199.8 227.3 15.5 .5% 15.3 .3% 20.4 .4% 20.4 .4% 12.3 .3% 15.4 .4% 16.4 .4%

1Q2 1Q201 018 2Q2 2Q201 018 3Q2 3Q201 018 4Q2 4Q201 018 1Q2 1Q201 019 2Q2 2Q201 019 1H20 1H2018 18 1H20 1H2019 19

EBITDA EBITDA Margin

• 33

52.0 50.4 87.3 86.1 35.7 102.4 121.8 8.0% 7.8% 12.2 .2%

• 4.5

.5% 12.2 .2% 5.2% 7.9% 8.8%

1Q2 1Q201 018 2Q2 2Q201 018 3Q2 3Q201 018 4Q2 4Q201 018 1Q2 1Q201 019 2Q2 2Q201 019 1H20 1H2018 18 1H20 1H2019 19

Net Profit Net Profit Margin

ANALYST MEETING

“PR9 2Q2 Q2019 019 Resu sult lts”

August 27, 2019