Inv Presentation July 10 - listed...

Investor PresentationJuly 2010

Bumrungrad Hospital Public Company Limited

2

Recent UpdatesRecent Updates

Bangkok Facility

• Renovation of all inpatient beds completed in May 2010

• Opened new Women’s Center in March 2010 and new Digestive Diseases Center in May 2010

• Healthy Living Club continues to attract domestic patients, with over 25,000 members as at May 2010

Bumrungrad International Limited

• Asian Hospital Inc. in the Philippines:

− Renovation completed; construction of a new 14-storey building, with additional outpatient & inpatient capacity, is in progress

− Bumrungrad International Limited’s shareholding in AHI increased to 56.4% from conversion of management fee into equity

• Asia Renal Care:

− Sale to be completed in July 2010

3

AgendasAgendas

• Overview and Corporate Information

• Bumrungrad International Hospital, Bangkok

• Bumrungrad International Limited

• Vitallife Corporation Limited

• Asia Global Research Company Limited

4

BHBH’’ss Core AttributesCore AttributesBangkok Flagship Facility

Medical Tourism

Quality

Financial Strength

Technology

Opportunistic Growth

Corporate Information

• 1st hospital in Asia to receive US JCI Accreditation (since 2002)

• JCI ‘Disease-Specific’ certifications: heart and stroke programs (2006), diabetes and kidney programs (2010)

• 1st private hospital in Thailand with Thai Hospital Accreditation (since 1999)

• 1st private hospital to receive Thailand Quality Class standard (2008) - based on US Baldrige Award

• Comprehensive hospital management system – Amalga

• Digitized PACS (Picture Archiving and Communication System) for imaging

• 1st hospital in Asia to implement:

− robotic pharmacy dispensing system

− automated laboratory system

• Diverse international patient base, with 40% international volume

• Treats over 400,000 international patients from 190 countries

• 31 representative offices

• Established specialized international services to accommodate international patients

• Proven revenue & profit growth, even through the economic crisis

• Stable margins

• Strong balance sheet (as at YE09):

−Net D/E 0.23x

−DSCR 24.8x

−ROA 14.9%

−ROE 24.1%

• Example: Sale of software in Global Care Solutions to Microsoft in 2007

• Other possible opportunities:

− Bumrungrad International Limited (international investments)

− Vitallife & VitechPro (wellness & anti-aging)

− Asia Global Research (clinical research)

• All new hospital, both inpatient and outpatient services, by mid-2010

• Room for additional capacity as needed:

−Current outpatient capacity of 4,500 visits per day vs. maximum capacity of 6,000 visits per day

−Current inpatient capacity of 484 beds vs. maximum capacity of over 600 beds

5

Fact SheetFact Sheet

Shareholding Structure

Others, 51.21%

Bangkok Insurance Pcl. , 13.17%

Sinsuptawee AM, 8.66%

Bangkok Bank Pcl., 1.08%

Istithmar, 5.94%

Temasek, 5.94%

UOB Kay Hian (HK) - Client Account ,

8.00%Littledown Nominees

Limited9, 6.00%

As of Apr 2010

Net Profit Contribution

Bumrungrad International

Hospital, Bangkok96.5%

Bumrungrad International

Limited3.5%

For the year 2009

Total Net Profit = THB 1,246 million

• Established in 1980; listed on SET in 1989• Major operations divided into Bangkok facility and international business

Bangkok FacilityFacilities

One of the largest and most sophisticated private hospitals in South-East Asia538 licensed inpatient beds and 4,500 outpatient capacity per dayThailand’s leading tertiary medical center

Accreditation1st hospital in Asia to receive US JCI Accreditation1st private hospital in Thailand with Thai Hospital Accreditation

Patient Volume & RevenueOver one million patients treated annuallyInternational following with over 400,000 international patients from 190 countries

Services19 specialist departments; 102 sub-specialist departments

International PresenceAsian Hospital Inc. in the Philippines with 217-bed capacityBumrungrad Al Mafraq Hospital, a public hospital in Abu Dhabi with 488 beds (management contract)

With a 30-year track record, BH is now the leading healthcare service provider in South-East Asian region


6

Group StructureGroup StructureCore business of BH is the renowned Bumrungrad Hospital

Comprehensive wellness center specializing in preventive care

Vitallife Corporation Ltd.(“Vitallife”)

100.0%

Note: As of May 2010

31.5%

Asian Hospital Inc.(“AHI”)

56.4%

* Strategic partners of Bumrungrad International Limited are:- Istithmar 19.5%- Temasek 19.5%- Asia Financial Holding 19.5%- Bangkok Bank 10.0%

Bumrungrad Al Mafraq Hospital

ManagementContract

International business

BumrungradInternational Ltd.*

Asia Global Health Ltd.(“AGH”)

100.0%

Regional healthcare opportunities

Asia Global Research Co., Ltd.

(“AGR”)Clinical research

100.0%

Operates Bumrungrad International Hospital, Bangkok

Bumrungrad Hospital Public Company Limited

(“BH”)


7

Management TeamManagement TeamBH’s management team comprises individuals with extensive experience in healthcare management

Mr. Dennis BrownCorporate CEO

K. Linda LisahapanyaManaging Director

Mr. Dennis BrownActing CEO

Bumrungrad International Ltd.

Note: Effective as at 1 Aug 2010

Mr. Theo SeilerCEO

Asian Hospital Inc.Philippines

Mr. Mack BannerCEO

Bumrungrad International, Bangkok

Mrs. Lee Chan YowCFO


Ms. Karen CarterCOO


Mr. John NickensCEO

Bumrungrad Al Mafraq Hospital Abu Dhabi, U.A.E.

Mr. Anthony TanCEO

Vitallife Corporation Ltd.

Mr. James MashCEO

Asia Global Research Co., Ltd.


Dr. Sinn AnurasGroup Medical Director

8

Operating PerformanceOperating Performance 20052005--20092009Total Revenue

Net Income

EBITDA

1,6641,928

2,070 2,1552,258

0

500

1,000

1,500

2,000

2,500

3,000

2005 2006 2007 2008 2009

EBIT

DA

(TH

B m

m)

8% CAGR

829

6,8077,896

8,584

8,925 9,385

0

2,000

4,000

6,000

8,000

10,000

12,000

2005 2006 2007 2008 2009

Sale

s (T

HB

mm

)

8% CAGR

4581,0961,053

1,147

1,191 1,246

0

500

1,000

1,500

2,000

2005 2006 2007 2008 2009

Net

Inco

me

(TH

B m

m) 4% CAGR

DILUTED EPS

1.21 1.26

1.29

1.37 1.440.56

0.0

0.5

1.0

1.5

2.0

2005 2006 2007 2008 2009

Dilu

ted

EPS

(TH

B)

Source: Audited FS

Source: Audited FS Source: Audited FS

4% CAGR

One-time profit of THB 458 million in 2007 was share of profit in investment in GCS Thailand, netted off with impairment of hospital software system

9,413

BH reported a one-time gain on share of profit in investment in CDE Trading (previously GCS Thailand) in 2007 of THB 829 million, mainly from sale of GCS Thailand’s assets

1,605

Source: Audited FS

1.85


9

Revenue from Hospital Operations

2,2612,554

0

1,000

2,000

3,000

1Q09 1Q10

1Q10 Update1Q10 Update

Source: Audited FS

EBITDA

Source: Audited FS

13% 611679

0

200

400

600

800

1Q09 1Q10

11%

Net Income

Source: Audited FS

• Revenue from hospital operations was up 13% as a result of:

− Inpatient revenue growth of 18%

− Outpatient revenue growth of 7%

• EBITDA increased by 11%, slightly lower than the increase in revenue from hospital operations because of expenses in start-up businesses such as Asia Global Research and Asia Global Health

• Net income increased by 9%

338369

0

100

200

300

400

1Q09 1Q10

9%

THB million THB million

THB million


10

Margins & TrendMargins & Trend

• Margins are on a rising trend over the past 5 years,

signifying the efficiency of the operations

• BH had tax-loss-carried-forward which can be used in

2005 (therefore low effective tax rate) and paid full tax

rate in 2006 onwards

Gross Margin Trend

40.8%38.8%38.3%38.5%37.6% 37.6%

25%

30%

35%

40%

45%

50%

2005 2006 2007 2008 2009 1Q10

Net Profit Margin Trend vs. Effective Tax Rate

15.5%13.9%

17.1%

13.3% 14.0%13.3%

17.2%

28.6% 28.5% 27.7% 27.1%31.3%

0%

5%

10%

15%

20%

25%

2005 2006 2007* 2008 2009 1Q100%

20%

40%

60%

80%

100%Net Margin (LHS)Effective Tax Rate (RHS)

* Net margin in 2007 includes one-time non-operating items

EBITDA Margin Trend

24.5%24.5% 24.2% 24.3% 24.2%25.8%

15%

20%

25%

30%

2005 2006 2007 2008 2009 1Q10


11

LeverageLeverageDebt to Equity

Net Debt to Equity

0.16

0.280.23

0.31

0.39

0.27

0.00

0.10

0.20

0.30

0.40

0.50

2005 2006 2007 2008 2009 1Q10

0.41 0.39

0.250.30

0.68

0.54

0.00

0.20

0.40

0.60

0.80

2005 2006 2007 2008 2009 1Q10

x

x

Interest Coverage

18.7

43.2

24.8

18.815.6 17.7

0.0

10.0

20.0

30.0

40.0

50.0

2005 2006 2007 2008 2009 1Q10

x

• Improvement of the balance sheet over the years, both in terms of D/E and interest coverage as the long-term debt was gradually paid-off

• Loan was refinanced on 1 Oct 09, with additional credit line of THB 1.4 billion, extended repayment schedule and lower interest rate


12

Effect from the Political InstabilityEffect from the Political Instability

Overall Inpatient Volume (ADC) Trend Y10

• Volumes have been effected by the

political protest, especially the outpatient

volume

• The sharp rebound in outpatient volume is

very encouraging

• July will be the start of our high season

Overall Outpatient Visits Trend Y10

2,000

3,000

1 Jan - 11 Mar 10 12 Mar - 2 Apr 10 3 Apr - 31 May 10 1-30 Jun 10

Before start of protest Protest @ Panfah

Protest @ Rajprasong After Protest

-9.1%

-19.1%+ 32.9%

200

400


-8.0%

-9.0%+ 1.3%

OPD visit per day

ADCs

13

Effect from the Political InstabilityEffect from the Political Instability (cont(cont’’d)d)

Overall Inpatient Volume (ADC) (% y-o-y increase/decrease)

• There is a lag of the effect on the inpatient

volume. However, the magnitude of the

effect is not as large as outpatient

Overall Outpatient Visits (% y-o-y increase/decrease)

% increase/decrease y-o-y

% increase/decrease y-o-y

3.6%

-4.5%

-18.4%

-3.4%

-20%

-15%

-10%

-5%

0%

5%


Y-O-Y Volume Growth

1Q10 2Q10

• IPD (ADC) +13% +5%

• OPD Visits +2% -13%

13.6%

10.1% 9.8%

-1.9%-3%

2%

7%

12%


Before start of protest Protest @ Panfah

Protest @ Rajprasong After Protest

14

2010 Strategy2010 Strategy

BH continues to improve and strengthen its core business, Bumrungrad International Hospital, Bangkok

• Improve facilities with focus on patient safety, innovation and efficiencies

• Focus on targeted specialties

• Domestic marketing efforts include Healthy Living Club membership program, advertisements, fairs, and packages

• International marketing through representative offices, internet marketing, international publications and media


15

2010 Strategy2010 Strategy

• Continue to improve and strengthen core business, Bumrungrad International Hospital, Bangkok

BrandQuality

Diversified customer baseInnovations

Information Technology


Leverage on core strengths:

16

Bumrungrad International Hospital, BangkokBumrungrad International Hospital, Bangkok

Bumrungrad International Hospital, Bangkok

17

Revenue BreakdownRevenue Breakdown

Inpatient vs. Outpatient (% of revenue) Method of Payment (% of revenue)

• Revenue contribution from outpatient continues as majority share following worldwide trends towards ambulatory care; BI Clinic well positioned for future growth.

• Corporate contracts increasing especially from foreign accounts; self-pay remains the primary method of payment.

47% 49% 49% 51% 51% 50%

50%53% 51% 51% 49% 49%

0%

25%

50%

75%

100%

2005 2006 2007 2008 2009 1Q10

Inpatient Outpatient

As of Mar 2010

Insurance13%

Corporate Contracts -

Intl6%

Corporate contracts - Domestic

9%

Self-pay72%


18

Volume Contribution by Nationality Revenue Contribution by Nationality

International PatientsInternational PatientsGrowth in International Patients • International patients remain a solid customer base; BH

served over 400,000 international patients in 2009

• Two main sources of international patients: - Domestic expatriate community - Foreign “medical tourists”

• Due to the generally high revenue intensity for international patients, foreign patients revenue expanded at a rate of 8% CAGR (5 years)

• Top growing countries are the Middle East and Myanmar, while the US is picking up after a slow down due to the global economic meltdown & Thailand’s political situation.

1,5571,659

1,862

2,0552,223

0

500

1,000

1,500

2,000

2,500

2005 2006 2007 2008 2009

OP

D R

even

ues

OPD

International Revenues

1,620 1,654

1,915 1,8712,025

0

500

1,000

1,500

2,000

2,500

IPD

Rev

enue

s

IPD 9% CAGR6% CAGRNote: Revenues net of doctors’ fees

THB mn THB mn

38% 41% 41%

59% 59% 59%

45%41% 40%

60% 55%62%

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 1Q10

% o

f Vol

ume

International Thais

53% 55% 54%

46% 45% 46%

61%55%54%

45% 39%47%

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 1Q10

% o

f Rev

enue

International Thais


19

More experience treating international patients More experience treating international patients

Annual International Patient Volumes at Top Medical Travel Destinationsbased on 2009 published sources

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Country

Num

ber o

f Int

erna

tiona

l Pat

ient

s

estimated 407,000 370,000 200,000 200,000 150,000 130,000 100,000 50,000

Bumrungrad Malaysia Singapore Turkey India Jordan Costa Rica Korea


* Data from various sources and may not match

20

Inpatient Capacity - Open Beds

Capacity

Outpatient Visit Capacity per day

Bangkok Facility Expansion PlanBangkok Facility Expansion Plan

• Bumrungrad International Bangkok plans to expand and upgrade its facilities over the next 5 years

• The facilities will give a better overall hospital experience for the patients

Outpatient: 4,500 6,000 visits per dayInpatient: 500 600 beds

Renovation Expansion

• BI Hospital Building• BI Clinic Building

• BH Tower

+

600484

484484484484458

0

100

200

300

400

500

600

700

2009 2010E 2011E 2012E 2013E 2014E M ax

6,0006,0005,700 5,100

4,500 4,800

0

1,000

2,000

3,000

4,000

5,000

6,000

2009 2010E 2011E 2012E 2013E 2014E

Opening of BI Clinic: 17th Fl

Renovation of BI Hospital Building• Women’s Center• Digestive Disease Center

Opening of BI Clinic: 19th & 20th Fl

Opening of BI Clinic: 21st Fl

Opening of BI Clinic: 18th Fl

* BI Clinic Building was opened in mid-2008, resulting in increase in outpatient capacity from 3,500 visits per day to 4,500 visits per day


21

CAPEX Program CAPEX Program

0

500

1,000

1,500

2009A/E 2010E 2011E 2012E 2013E 2014E

Construction in ProgressEquipment & softwareBuilding and Construction

0

500

1,000

1,500

2009A 2010E 2011E 2012E 2013E 2014E

BH Tow erBI Hospital BuildingBI Clinic BuildingMaintenance

CAPEX allocated by project

765

1,132

937

1,161

896

CAPEX allocated by asset type

1,038

Bt million

Bt million

Total CAPEX for the capacity expansion and renovation over the next 5 years (2010-2014):

(Excluding Maintenance CAPEX)

- New BI Clinic Building Bt 335 million

- Existing BI Hospital Building Bt 606 million

- BH Tower Bt 660 million

Total Bt 1,601 million

1,132

937

1,161

8961,038


765

22

An All New Concept An All New Concept –– BI ClinicBI Clinic

Ground Floor Lobby

Sky Lobby

Ground Floor Lobby, Parking and 5 floors of clinic space of the new outpatient building are now open

Welcome Center

New Clinics


23

Renovated Inpatient WardsRenovated Inpatient Wards

The hospital room of the future – today!


24

New Women Center & Digestive Diseases CenterNew Women Center & Digestive Diseases CenterThe renovation of Digestive Diseases Center is expected to be completed by mid-2010

Women’s Center

Digestive Diseases

Center


25

Bumrungrad International Limited Bumrungrad International Limited


26

Asian Hospital, the Philippines (AHI) Asian Hospital, the Philippines (AHI)

• 2002: Opened as a private hospital, one of the largest in the southern Luzon corridor of metropolitan Manila, the Philippines

• Feb 2005: Acquired by Bumrungrad International Limited

• 2010:

− A 217-bed private hospital

− Since the acquisition, the hospital has turned around and became profitable in 2007

− With the hospital operating at almost its full capacity, AHI is undergoing an expansion plan over the next two years to increase the number beds to 346 beds


Facts & Figures:

− Ownership (by Bumrungrad International Limited):from conversion of management fees into equity & and new capital injection@ acquisition 43.0%@ present 56.4%

- Amount and year invested: (by Bumrungrad International Limited)2005 USD 10 million2008 USD 9 million

− Other shareholders:Dr. Garcia 8.2%Insular Life 11.8%Filinvest 8.3%Others 15.3%

27

Bumrungrad Al Mafraq Hospital, Abu DhabiBumrungrad Al Mafraq Hospital, Abu Dhabi,, U.A.E. U.A.E.

• Management contract signed with the Health Authority of Abu Dhabi for 4 years, December 2007 - 2011

• Inpatient capacity of 460 acute care beds, 28 intensive care and 14 special care baby unit beds

• Patient volume of ~310,000 patients, including more than 25,000 inpatients annually

• Simultaneously, a new modern hospital building is being constructed on an adjacent site that will replace the current facility


28

Bumrungrad International LimitedBumrungrad International Limited In SummaryIn Summary

Bumrungrad International Limited is profitable, with net profit of USD 2.5 million in 2009, as the three operating projects in the portfolio are profitable

- AHI is profitable and generating good internal cash flow

- Management fees from Bumrungrad Al Mafraq Hospital is accretive

Capacity expansion plans for AHI in progress & on schedule

Bumrungrad International Limited’s management continues to pursue additional investment opportunities in the region


29

2002: Establishment of Vitallife Wellness Center

• Vitallife Wellness Center was opened as Thailand’s first anti-aging and preventive medicine clinic

• Products offered include:− Age Management− Preventive & Regenerative Care− Beauty & Skin− Weight Management− Sports Medicine− Hormone

2009: Establishment of VitechPro Wholesale Business

• Launched VitechPro, comprehensive solution for affiliated wellness clinics

• Products include nutraceuticals, lab services and training services

Vitallife & Asia Global Research

30

Asia Global ResearchAsia Global Research

AGR, established in 2009, offers clinical research services to the global pharmaceutical, biotech and medical device industries

AGR has two functional units, which are complementary to each other:

− Contract research organization (CRO)performs multicenter clinical trials for the international biotech, pharmaceutical and device companies (Sponsors).

− Site management organization (SMO)manages groups of investigational sites for the purpose of providing Sponsors and CROs with numerous sites capable of providing quality research and quality data. SMO’s clients can include Sponsors or CROs.

Vitallife & Asia Global Research

Date post:	11-Jun-2018
Category:	Documents
Upload:	ngongoc
View:	216 times
Download:	0 times

Inv Presentation July 10 - listed...

Documents