Rajthanee Hospital Public Company Limited 1Q 2019 Result Investor - - PowerPoint PPT Presentation

Rajthanee Hospital Public Company Limited

Investor Presentation : June 2019

1Q 2019 Result

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Agenda

• 1. Summary and Updates
• 2. Business Overview
• 3. Financial Performance
• 4. Strategies & Future Projects

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Disclaimer

The information contained in this presentation is for information purposes only and does not constitute an

• ffer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in

Rajthanee Hospital Public Company Limited (“RJH” and shares in RJH, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or 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 RJH operates and general achievement of RJH business forecasts, which will cause the actual results, performance or achievements of RJH to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. This presentation has been prepared by RJH. 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 RJH or any of its agents or advisers, or any of their respective affiliates, advisers

• r representatives, shall have any liability (in negligence or otherwise) for any loss whatsoever arising from

any use of this presentation or its contents or otherwise arising in connection with this presentation. 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.

Summary and Updates

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Company Profile

Our History Rajthanee Hospital Public Company Limited (“RJH”) was established in 1990 and commenced its

• perations in 1992 under the management of experienced physicians. Most of which graduated from

Siriraj Medical School and are currently major shareholders of RJH. Business Overview 2 private general hospitals, namely Rajthanee Hospital and Rajthanee Rojana Hospital (“RRH”), located in Phra Nakhon Si Ayutthaya District and Bang Pa-In District, respectively, as part of Ayutthaya Province Target Customers

• Mid-to-low income patients and social security patients
• Non-Social Security revenue : Social Security revenue proportions are 57 : 43 and 56:44 in 2018

and 1Q’ 2019 Capacity 353 registered hospital beds, 250 beds in service , 67 OPD units and 47 Hemodialysis units Excellent Medical Centers

• Emergency and Neurosurgery Center
• Heart Center
• Minimal Invasive Surgery (MIS)
• Orthopedics Center
• MRI Center

Financial Performances Total revenue from hospital operations

• 2016–2018 : THB 1,209.5 MB., 1,403.1 MB. and 1,587.4 MB. respectively +15.7% CAGR
• 1Q’ 2019 : THB 445.9 M, +16.4% growth yoy.

Future Projects

• New Hemodialysis Center
• Bed service expansion
• Renovation and expansion of OPD examination
• New hospital building

Business Overview

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Business Characteristics

Rajthanee Hospital (RJH)

Rajthanee Hospital Public Company Limited

Registered hospital beds

253 beds

Beds in service

212 beds

OPD units Hemodialysis units

57 rooms 27 beds

Number of the insured persons

160,574

Quota of the insured persons

161,000

Full-time / Part-time physicians

45 / 190

Nurses

176

Rajthanee Rojana Hospital (RRH)

Rajthanee Rojana Hospital Company Limited

Registered hospital beds

100 beds

Beds in service

38 beds

OPD units Hemodialysis units

10 rooms 20 beds

Number of the insured persons

26,038

Quota of the insured persons

35,000

Full-time / Part-time physicians

8 / 33

Nurses

28

As of Mar. 31, 2018

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No.1 Hospital in Ayutthaya

No. Hospitals Gov’t/ Private Locations Social Security Scheme

• No. of

Registered Beds 1 Phra Nakorn Sri Ayutthaya Gov’t Phra Nakhon Si Ayutthaya District  528 2 Sena Hospital Gov’t Sena District  180 3 Karunvej Ayutthaya Hospital Private Bang Pa-in District  105 4 Supamitrsena General Hospital Private Sena District

• 100

5 Peravech Hospital Private Phra Nakhon Si Ayutthaya District

• 53

Ayutthaya Province:

• Large population and economy with increasing healthcare

spending

• Locations of major industrial estates and industrial parks:

3 industrial estates: Ban Wa (Hi-Tech) Industrial Estate, Bang Pa-in Industrial Estate and Saha Rattana Nakorn Industrial Estate 2 industrial parks: Rojana Industrial Park and Factory Land Wangnoi Industrial Park RJH as the leading private hospital group in Ayutthaya:

• The first and biggest private hospital in Ayutthaya and nearby

provinces celebrating 27 years of business

• Capture 50% market share of Ayutthaya’s Social Security

insurers

• Reputable medical staff and medical services of good quality

and standard

1 2 3 4 5

Rajthanee Hospital Rajthanee Rojana Hospital

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4.349 0.914 0.845 0.532 0.490 0.468 0.413 0.369 0.326 0.303 Bangkok Samut Prakan Chon Buri Pathum Thani Samut Sakhon Rayong Nonthaburi Ayutthaya Chiang Mai Nakhon Ratchasima 153,810 24,892 23,962 16,994 11,236 9,413 18,184 6,433 16,599 9,272

Social Security Sector’s Outlook

Number of Insured Persons (Sector 33 & 39)

Source: Social Security Office ; data as of May 31, 2019

• Contributing 2.81% of the nationwide number (13 million)
• Ranked 8th out of 77 provinces

Number of Employers

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Ayutthaya’s Healthcare Industry Outlook

Source: Social Security Office ; data as of May 31, 2019

351,641 353,862 353,147 362,798 379,287 369,210 38% 41% 43% 45% 46% 51% 2014 2015 2016 2017 2018 May-19

Insured Persons (S 33 + S 39) RJH's Insured Persons RJH Market Share %

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Ayutthaya’s Healthcare Industry Outlook

5,679 5,745 5,817 6,012 6,375 6,433

1.94% 1.16% 1.25% 3.35% 6.04% 0.91%

2014 2015 2016 2017 2018 May-19

• No. of Employers

Growth

Source: Social Security Office ; data as of May 31, 2019

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Revenue Structure Fixed Capitation Payment Statistics-based Payment Base Payment (Fixed) 1,500 THB / Head / Year Customer Complaints : 60 THB / Head / Year Subject to Nationwide Budget OPD IPD 12,800 THB / RW AdjRW > 2 OPD only 26 Chronic Diseases Per Special Medical Services 1 2 3

Revenue Structure under Social Security Scheme

Discharge Type: 60 THB / Head / Year

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Financial Performance

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28% 28% 44%

1Q 2019

THB 446 million 28% 29% 43%

OPD IPD SS

Revenue Breakdown By Patient Type

1Q 2018

THB 383 million

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687 773 911 218 212 260 221 248 522 630 676 165 171 167 173 198 1,209 1,403 1,587 383 383 427 394 446 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19

Non SS Revenue Social Security Revenue

Gross Profit

Group Performance

Revenue from Hospital Operations (THB Million)

+ 15.7% CAGR

333 417 485 126 109 133 118 160 27.5% 29.7% 30.6% 32.8% 28.4% 31.2% 29.9% 36.0% 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19

Gross Profit % Gross Profit Margin

+16.4% (y-o-y) + 13.2% (q-o-q)

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Revenue from OPD Non SS Patients (THB Million) Number of Visits /1 and Revenue per Visit

OPD - Non SS Patients

/1 Not include visits among the group

381 420 472 108 113 130 121 124 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 +10.3% CAGR

+15.5% (y-o-y) + 2.9% (q-o-q)

262.0 272.7 300.2 72.6 71.8 80.7 75.1 76.8 1,454 1,540 1,571 1,482 1,575 1,614 1,608 1,617 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 Non-SS OPD visits ('000 visits) Revenue per Visit (THB/Visit)

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OPD Utilization Rate – All Sectors

OPD Capacity (Units) & Utilization Rate (%) /1

/1 Include visits among the group

63 63 65 64 64 64 67 67 43 44 47 47 47 47 47 47 106 107 112 111 111 111 114 114 72.0% 80.4% 81.6% 81.8% 80.7% 87.0% 77.4% 80.9% 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 OPD units Hemo Units % Utilization

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Revenue from IPD Non SS Patients (MB) Number of Visits /1 and Revenue per Visit

IPD – Non SS Patients

306 353 439 111 99 130 100 124 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 +22.1% CAGR

+12.2% (y-o-y) +24.2% (q-o-q) /1 Not include visits among the group

10.4 11.3 13.4 3.7 2.9 3.9 2.9 3.5 29,451 31,297 32,805 29,773 34,021 33,525 34,516 35,270 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 Non-SS IPD Visit ('000 visits) Revenue per Visit (THB/Visit)

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IPD Utilization Rate – All Sectors

IPD Capacity (Beds) & Utilization Rate (%) /1

/1 Include visits among the group

183 208 234 227 227 239 244 250 81.3% 77.8% 79.5% 82.3% 77.8% 88.0% 70.0% 78.3%

2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 iPD beds % Utilization

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Average Insured Persons (‘000 persons) Revenue per Average Insured Persons (THB/Head)

Social Security Scheme

142.5 152.1 156.4 154.5 154.9 156.5 159.7 160.7 9.9 11.3 19.0 15.7 18.5 20.1 21.6 24.3 152.3 163.4 175.4 170.2 173.5 176.5 181.3 184.9 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19

RJH RRH

968 988 946 956 1,068 1Q18 2Q18 3Q18 4Q18 1Q19 3,428 3,857 3,856 2016 2017 2018

50% market share

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Revenue from SS Patients (THB Million)

Social Security Scheme

522 630 676 165 171 167 173 198 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 +16.4% CAGR +19.9% (y-o-y) +14.0% (q-o-q)

• Adj RW

+ Adj RW + Discharge & complaints + Chronic cases

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EBITDA (THB Million) & EBITDA Margin (%)

EBITDA

• 2Q’18 RJH group adjusted upward SG&A stemming from the discount of Adj RW payment rate of 4Q’17 for the amount of

THB 10.7 million. 270 341 393

96 87 112 98 140

(11) (11) 22.3% 24.3% 24.7% 25.1% 22.6% 26.2% 24.8% 31.5% 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19

EBITDA (excl. extra items) Extra Income / (Expense) % EBITDA Margin

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Net Profit (THB Million) & Net Profit Margin (%)

Net Profit

• 2Q’18 RJH group adjusted upward SG&A stemming from the discount of Adj RW payment rate of 4Q’17 for the amount of

THB 10.7 million.

• 1Q’ 19 RJH has sold vacant land yielding profit THB 98.7 million before tax or THB 79.0 million after tax

155 231 265 66 54 75 71 97

(11) (11) 79 12.8% 16.5% 16.7% 17.2% 14.2% 17.5% 17.9% 21.8% 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 Net Profit (excl. extra items) Extra Income / (Expense) % Net Profit Margin

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Capital Structure

0% 5% 4% 6% 85%

31 March 2018

ST Loans Accounts payable LT Loans Others Liabilities Equity 2% 6% 4% 7% 80%

31 March 2019

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Strategies & Future Projects

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Strategies and Future Projects

Segments Strategies Total Revenue

• Targeted total revenue growth of 10-15% yoy.
• Add more center of excellence to minimize referral cases

OPD

• RJH’s new Hemodialysis of 16 units to be open by July 2019
• Added 2 new OPD units at RJH and 1 unit at RRH by June 2019
• Focus more on tourist patients : Cambodia

IPD

• Adding about 29 beds at RJH and 6 beds at RRH by June 2019.
• Adding 2-3 operation rooms at RJH.
• Increase ICU units.
• Increase Cathlab referral case from nearby provinces. Expected 200-250 cases in 2019
• Focus on Minimal invasive surgery (MIS).

Social Security

• Increase social security insured persons at RRH
• More effective follow-up of chronic cases
• Expansion of chronic case clinic
• Boost more Adj RW and equipment income from cathlab and MIS

For further information & enquiries, please contact our investor relations at: Manassa Lertdumrongluck Investor Relations Tel: (+66) 65-931-0499 Email: ir-rjh@rajthanee.com Website: http://www.rajthanee.com/investor-relation.html Rajthanee Hospital Public Company Limited 111 Moo 3, Khlong Suan Phlu Sub-district, Phra Nakhon Si Ayutthaya District, Phra Nakhon Si Ayutthaya Province, Thailand 13000 Tel: (+66) 3533-5555-71

Thank You

Q&A