24
PG.1 Bumrungrad Hospital Public Company Limited Analyst Meeting No. 1/2013 – 4Q12 and 2012 Results Update 4 March 2013
PG.1
Bumrungrad Hospital Public Company Limited
Analyst Meeting No. 1/2013 – 4Q12 and 2012 Results Update
4 March 2013
PG.2
Disclaimer • 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 Bumrungrad Hospital Public Company Limited (the
"Company") in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or
commitment whatsoever.
• This presentation is being communicated only to persons who have professional experience in matters relating to investments and/or
to persons to whom it is lawful to communicate it under the laws of applicable jurisdictions. Other persons should not rely or act upon
this presentation or any of its contents.
• Certain information and statements made in this presentation contain the Company's forward-looking statements. All forward-looking
statements are the Company's current expectation of future events and are subject to a number of factors that could cause actual
results to differ materially from those described in the forward-looking statements. Prospective investors should take care with respect
to such statements and should not place undue reliance on any such forward-looking statements.
• 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, any of
its affiliates or any of their respective agents, advisors or representatives, shall have any liability (in negligence or otherwise) 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 should not be construed as legal, tax, investment or other advice. No part of this presentation shall be relied upon
directly or indirectly for any investment decision-making or for any other purposes. Prospective investors should undertake their own
assessment with regard to any investment and should obtain independent advice on any such investment’s suitability, inherent risks
and merits and any tax, legal and accounting implications which it may have for them.
• Certain data in this presentation were obtained from various external data sources, and none of the Company, any of its affiliates or
any of their respective agents, advisors or representatives have verified such data with independent sources. Accordingly, the Company
makes no representation as to the accuracy or completeness of those data, and such data involve risks and uncertainties and are
subject to change based on various factors.
PG.3
Overview
• 4Q12: As a result of flooding in parts of Bangkok and surrounding provinces in 4Q11, volumes increased from 4Q11 for both outpatient and inpatient services provided, and for both Thai and international markets.
• 4Q12: Inpatient revenue per admission remained stable in 4Q12 due to a shorter average length of stay than that experienced during the floods. For outpatient services, revenue intensity improved 9.5% year-over-year, with a slight intensity increase for inpatient services on a patient day basis. As a result, outpatient and inpatient service revenues grew by 36.6% and 20.8%, respectively.
• Results for 2012 and 2011 included extraordinary items related to the sale of investments in Bangkok Chain Hospital PCL (doing business as “Kasemrad Hospital Group”) and ABSPC Group Co., Ltd. (formerly known as “BMC”), as well as wind-down activity within the Bumrungrad International Limited (BIL) group. The details of these transactions are presented in the Associated Companies section. Applicable amounts including and excluding these extraordinary items are presented below:
Operational Update
Financial Performance
• BI Bangkok
• Thailand
• International
Updates and Ongoing Focus
4Q12 growth 2012 growth
Total revenues 29.8% 24.2%
Total revenues excluding extraordinary items 29.8% 17.2%
EBITDA 33.6% 18.0%
Net profit 8.0% 67.9%
Net profit excluding extraordinary items 38.7% 29.6%
PG.4
Agenda
Strategy
Operational Update
Financial Performance
Associated Companies
PG.5
Strategy
• Campus Expansion
• Doctor Recruitment
Bumrungrad International
Hospital
• Expand in our existing market segment
• Expand into a new market segment – 2nd Brand
• Development of the Bumrungrad Network
Thailand
• Review of selective opportunities International
PG.6
Campus Expansion
• Move off campus into leased office space Back office
• Open 5 floors in Bumrungrad International Clinic
• Expand clinics in Bumrungrad International Hospital Clinics
• Add 44 ICU beds and 58 ward beds in Bumrungrad International Hospital building
• Expand ancillary services Inpatient
• Bought 7,965 sq. meters of land on Petchburi Road.
• Capability to construct 150 – 200 bed hospital
Bumrungrad International – 2nd Campus
• Bought 6,178 sq. meters of land on Sukhumvit Soi 1.
• This land would facilitate the expansion of capacity near the main campus.
New Land for Capacity on Soi 1
• Determine alternatives for employee housing
• Determine alternatives for office space
Acquire Additional Capacity
Est. Capital Investment (Million THB)
Y11 Y12 Y13 Y14 Y15 Y16 Y17 Total
643 1,873 2,839 1,514 487 2,239 114 9,709
PG.7
Realignment of the Corporate Structure
Holds land on Soi 1
Bumrungrad International Ltd.
(“BIL”)
Comprehensive wellness center specializing in preventive care
Vitallife Corporation Ltd.
31.5% 100.0%
Asia Global Research Co., Ltd.
100.0%
Ruenmongkol Co., Ltd.
Clinical research
100.0%
Operates Bumrungrad International Hospital, Bangkok
Bumrungrad Hospital Public Company Limited
(“BHPCL”)
No active operation
• Divestment of all Kasemrad Hospital Group (“KH”) shares on 10 July 2012.
• Purchase of 100% of issued and paid-up share capital of Ruenmongkol Co., Ltd. (“Soi1”) on 24 September 2012.
• Divestment of remaining 51% of Bumrungrad Medical Center Ltd. (“BMC”) on 26 September 2012.
BIL Capital Reductions
Date From (THB) To (THB) BHPCL Received
19 April 2011 3,199.3 million 1,176.0 million 612.6 million
15 March 2012 1,176.0 million 294.0 million 270.6 million
18 May 2012 294.0 million 73.5 million 69.5 million
23 July 2012 73.5 million 18.4 million 17.4 million
25 September 2012 18.4 million 4.6 million 4.3 million
PG.8
Strategy
Operational Update
Financial Performance
Associated Companies
Agenda
PG.9
2,889 2,759
3,030
2,460 2,837
2,877 3,030
2,460
2,971 3,007 3,085
3,004
-
1,000
2,000
3,000
3Q 4Q 1Q 2Q 3Q 4Q
2010 2011 2012
Outpatient Visits Volume Trend
• As a result of flooding in parts of Bangkok
and surrounding provinces in 4Q11,
volumes rose in 4Q12 compared with
4Q11 in both Thai and international
markets.
• 2012 outpatient volumes improved
compared with 2011, driven by increases
in both international and Thai markets.
Visits
Average Visits per Day
22.1% 4.7% 10.8% 4.9% 4.5% 1.8%
Visits
Average Visits per Day
2,680
2,801 2,801
3,017
2,500
2,600
2,700
2,800
2,900
3,000
3,100
2011 20122010 2011 2012
4.5%
7.7%
PG.10
78
80 80
85
74
76
78
80
82
84
86
2011 20122010 2011 2012
88 77
88
70
83 80 88
70
87 80
89 84
-
20
40
60
80
100
3Q 4Q 1Q 2Q 3Q 4Q
2010 2011 2012
Admissions Volume Trend
• As a result of flooding in parts of
Bangkok and surrounding provinces in
4Q11, volumes rose in 4Q12 compared
with 4Q11 in both Thai and international
markets.
• 2012 inpatient volumes improved
compared with 2011, driven by increases
in both international and Thai markets.
Admissions
Average Admissions per Day
0.2% 4.9% 9.3% 0.3% 1.6% 20.4%
Admissions
Average Admissions per Day
3.6%
6.1%
PG.11
335
350 350
379
300
320
340
360
380
400
2011 20122010 2011 2012
359
322
377
329 347 349
377
329
376 372 389 378
-
100
200
300
400
3Q 4Q 1Q 2Q 3Q 4Q
2010 2011 2012
Average Daily Census Volume Trend
• As a result of flooding in parts of Bangkok
and surrounding provinces in 4Q11,
volumes rose in 4Q12 compared with
4Q11 in both Thai and international
markets.
• 2012 ADC improved due to an increase in
admissions and a longer average length of
Stay.
4.9% ADC
Average Daily Census
2.2% 8.4% 6.7% 3.2% 15.0%
ADC
Average Daily Census
4.5%
8.1%
PG.12
199,321 205,814 204,098
217,925
188,204 206,353
217,246 232,823
212,437 218,808 206,353
220,001
0
50000
100000
150000
200000
250000
1Q 2Q 3Q 4Q 2011 2012
2010 2011 2012
5,976 5,993 6,012 5,983 5,604
5,992 6,471 6,534 6,550
6,691
5,992 6,562
0
1000
2000
3000
4000
5000
6000
7000
8000
1Q 2Q 3Q 4Q 2011 2012
2010 2011 2012
9.6%
Revenue intensity change: 4th Quarter, • OPD revenue intensity increased
9.5%. • IPD revenue intensity per admission
decreased 4.5% due to a shorter average length of stay than that experienced during the floods. On a patient day basis, IPD revenue intensity increased slightly.
YTD Dec, • OPD revenue intensity increased
6.3%. • IPD revenue intensity increased 3.0%
from increased average length of stay.
Revenue Intensity
Bt
Revenue per Visit
9.0% 8.9% 8.3% 11.8%
Bt
Revenue per Admission
9.0% 13.1% 4.1%
6.9%
0.4%
9.5%
6.6%
PG.13
Volume Contribution by Nationality
Revenue Contribution by Nationality
International Breakdown
• For 4Q12, International revenue was up 38.2%
from 4Q11, primarily from volume increases,
some of which as a result of flooding in 2011.
• 2012 Top 5 revenue contribution by Non-Thai
Nationalities
UAE 9%
Myanmar 6%
Oman 5%
USA 5%
Kuwait 4%
60% 61% 59% 56% 61% 63% 60% 60%
40% 39% 41% 44% 39% 37% 40% 40%
0%
20%
40%
60%
80%
100%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
% o
f re
ven
ue
International Thais
45% 45% 45% 41% 47% 46% 45% 45%
55% 55% 55% 59% 53% 54% 55% 55%
0%
20%
40%
60%
80%
100%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
% o
f vo
lum
e
International Thais
PG.14
Revenue Breakdown
Inpatient vs. Outpatient (% of revenue) Method of Payment (% of revenue)
Y2012
• 4Q12 Revenue growth:
Outpatient revenue increased by 36.6% y-o-y
Inpatient revenue increased by 20.8% y-o-y
• Self-pay remains the primary method of payment
49% 49% 50% 51% 50% 49% 48% 48%
51% 51% 50% 49% 50% 51% 52% 52%
0%
20%
40%
60%
80%
100%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Inpatient Outpatient
Corporate Contracts - Domestic
10% Corporate
Contracts - Intl 8%
Self-pay 70%
Insurance 12%
PG.15
Agenda
Strategy
Operational Update
Financial Performance
Associated Companies
PG.16
EBITDA and EBITDA Margin
EBITDA (THB mm)
EBITDA Margin
33.6%
18.0%
• 4Q12: Cost of hospital operations (including Depreciation and amortization of Baht 130 million) increased 25.9% year-over-year from 4Q11. Administrative expenses (including Depreciation and amortization of Baht 47 million) increased 26.0% year-over-year from 4Q11.
• Revenue from hospital operations increased by 29.2%, outpacing the above increases in cost and contributing to improved margins. EBITDA was Baht 726 million in 4Q12, a 33.6% increase from Baht 543 million in 4Q11, with EBITDA margin improving to 22.0% in 4Q12 from 21.2% in 4Q11.
• Y2012: Cost of hospital operations (including
Depreciation and amortization of 518 million) increased 16.4% from 2011. Administrative expenses (including Depreciation and amortization of Baht 192 million) increased 13.3% from 2011.
• Revenue from hospital operations increased by 16.7%, outpacing the above increases in cost and contributing to improved margins. EBITDA was Baht 3,326 million in 2012, or 18.0% more than Baht 2,819 million in 2011, with EBITDA margin improving to 25.3% in 2012 versus 25.0% in 2011.
543
2,819
726
3,326
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4th Quarter YTD Dec
Y2011
Y2012
21.2%
25.0%
22.0%
25.3%
20%
22%
24%
26%
28%
30%
4th Quarter YTD Dec
Y2011
Y2012
PG.17
374
1,588
291
1,555
404
2,667
404
2,015
0
500
1,000
1,500
2,000
2,500
3,000
4th Quarter YTD Dec 4th Quarter* YTD Dec*
Y2011 Y2012
Net Profit (THB mm)
Diluted EPS (THB) • The Company’s results for Y2012 included extraordinary items related
to the sale of all of its investment in Bangkok Chain Hospital PCL (doing business as “Kasemrad Hospital Group”), its remaining investment in ABSPC Group Co., Ltd. (formerly known as “Bumrungrad Medical Center Co., Ltd.”), and its Share of loss from Bumrungrad International Limited (BIL) due to certain taxes paid on the gain of the sale of all its investment in Asian Hospital Inc. The Company’s results for 2011 and 4Q11 included the extraordinary items related to the sale of its partial investment in ABSPC Group Co., Ltd., the share repurchase of Bumrungrad International Holdings (Hong Kong) Limited, and the sale of all investment in Asian Hospital Inc. by its associate, BIL.
• Excluding these extraordinary items, Adjusted Net profit grew by 38.7% in 4Q12 and 29.6% in Y2012, each over the prior year, and Adjusted Net Profit Margin improved from 11.2% in 4Q11 to 12.1% in 4Q12 and from 13.7% in Y2011 to 15.1% in Y2012.
8.0%
Net Profit Margin
Net Profit, Net Profit Margin and Diluted EPS
67.9%
38.7%
29.6%
* Excluding extraordinary items * Excluding extraordinary items
14.4% 13.9%
11.2% 13.7%
12.1%
18.9%
12.1% 15.1%
0%
5%
10%
15%
20%
25%
30%
4th Quarter YTD Dec 4th Quarter* YTD Dec*
Y2011 Y2012
0.43
1.83
0.34
1.79
0.47
3.07
0.47
2.32
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4th Quarter YTD Dec 4th Quarter* YTD Dec*
Y2011 Y2012
8.0%
29.5%
67.8%
* Excluding extraordinary items
38.7%
PG.18
Leverage
x Interest Coverage
x
Net Debt to EBITDA
x
Net Debt to Equity
x
*
* Interest expense related to the purchase of common shares of Bangkok Chain Hospital PCL
(doing business as “Kasemrad Hospital Group”) to calculate Interest coverage ratio was Baht 111
million based on remaining days after the transaction settled. Assuming this interest expense
was incurred for the full year, interest expense from this transaction would be Baht 140 million
and Interest coverage ratio would be 12.9x
• As a result of the increase in Cash and cash equivalents related to strong operating results and net cash proceeds from sale of investment in Kasemrad Hospital Group, the total debt as at 31 December 2012 was lower than the cash and cash equivalents balance, leading to a net cash balance after considering outstanding debt.
• Interest coverage ratio improved slightly from the Adjusted 12.9x noted above in 2011.
18.7 18.8
24.8
35.9
14.9 13.8
0
10
20
30
40
2007 2008 2009 2010 2011 2012
0.6 0.7
0.6
0.4
1.3
(0.3)
(0.50)
0.00
0.50
1.00
1.50
2007 2008 2009 2010 2011
2012
0.3 0.3 0.2
0.2
0.6
(0.1)
(0.30)
0.00
0.30
0.60
0.90
2007 2008 2009 2010 2011
2012
PG.19
Agenda
Strategy
Operational Update
Financial Performance
Associated Companies
PG.20
• KH Acquisition Date: 18 March 2011
• BH Investment % : 24.99%
• KH Divestment Date: 10 July 2012
• BH recognized Share of KH’s profit in 2012, following the investment in March 2011, is set out in the table below.
* The Company did not recognize any Share of profit from KH in 3Q12 and 4Q12, as a result of the sale of all shares in early July 2012
** The Company did not recognize the Share of profit of Baht 3.6 million from Kasemrad Hospital Group in
1Q11, as the acquisition occurred during the last few days of 1Q11
Kasemrad Hospital Group (“KH”) – Share of Profit
(Unit: Thousand Baht) 2012* 2011**
Share of profit from KH 111,286 92,238
Depreciation for fixed assets revaluation (4,227) -
Share of profit from KH -net 107,059 92,238
Consulting fee for KH loan - (4,141)
Interest expenses (82,633) (69,483)
Amortization of bond issuance cost (2,001) -
Decrease in corporate income tax 19,006 22,087
Net Share of profit from KH 41,430 40,701
PG.21
• The KH shares were divested on 10 July 2012 given the favorable market valuation which provided an
opportunity for an attractive return and the potential to deploy capital for alternative uses.
• THB 4,564 million in gross proceeds and THB 4,482 million in net proceeds (after transaction costs)
received from the share sale.
• Consolidated pretax gain on sale (Equity Basis) of THB 789.8 million after applicable transaction costs.
• Net Gain on sale (Equity Basis) of approximately THB 586 million (THB 598 million in 3Q12).
• Cumulative Gross ROI was 31.4% & Annualized pretax IRR was 20.5%.
Kasemrad Hospital Group (“KH”) - Divestment
Results from KH-Divestment
Gross Sales Proceeds THB 4,564 million
Net Sales Proceeds THB 4,482 million
Consolidated pretax gain THB 789.8 million
Net Gain on sale -Equity Basis THB 586 million
Cumulative Gross ROI 31.4%
Annualized pretax IRR 20.5%
PG.22
• On 24 September 2012, the Company acquired 100% of Ruenmongkol Co., Ltd. at a
transaction value of Baht 1,045 million (including investment acquisition expenses)
• This investment results in ownership of land on Sukhumvit Soi 1, which will be utilized for
expansion of capacity near the main campus.
Investment in Ruenmongkol Co., Ltd. (“Soi 1”)
• The land covers an area of 1,544.4 square
wah or 6,178 square meters and has a street
frontage of 86 meters.
PG.23
• On 26 September 2012, the Company sold all of its investment in ABSPC Group Co., Ltd.,
(formerly known as “BMC”) resulting in a small gain on the sale of less than Baht 0.1 million.
The Company recognized an associated tax benefit, from the tax loss on sale, of Baht 85
million in 3Q12.
• In 3Q12, the Company recorded the Share of loss from BIL which included the capital gain
taxes and tax advisory services of Baht 14 million associated with the sale of investment in
Asian Hospital Inc., as well as certain wind-down costs of BIL of Baht 5 million. BIL had
applied for Tax Treaty Relief on the sale of Asian Hospital Inc. which was ultimately not
granted in the final phase of the process, triggering capital gain taxes on the transaction.
BMC Divestment and the Share of loss from BIL
PG.24
Q & A
