bangkok dusit medical services (bgh) analyst presentation 1q10...
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Bangkok Dusit Medical Services (BGH)
Analyst Presentation
1Q10 Results
June 24, 2010
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Important Notice
� 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 share in Bangkok Dusit Medical Services PublicCompany Limited (“BGH” and shares in BGH, ”shares”) in any jurisdiction nor should it or any part of it from 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 BGH operates and general achievement of BGH business forecasts, which will cause the actual results, performance or achievements of BGH to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation.
� This presentation has been prepared by the BGH. 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 BGH or any of its agents or advisors or any of their respective affiliates, advisors or representatives, shall have any liability ( in negligence or otherwise) for any loss howsoever 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 reliedupon 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.
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Contents
� Overview
� Financial Highlights
� Operational Statistics
� BDMS - Corporate Marketing
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Overview
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1Q10 Highlights
Operation Summary� Core revenues grew by 13% yoy to THB 5,997 mm due m ainly to
� Strong growth in both Thai (+7% yoy) and Inter pati ents (20% yoy)
� OPD revenues grew 10% yoy while IPD revenues grew 1 5% yoy
Financial Highlights
� Net profit increased by 66% yoy to THB 754 mm from patient revenues
growth together with the continued cost containment measures
Development
� TRIS Rating affirms the company rating at “A” and is sue rating for THB 8,000 million senior debentures at “A” with stable o utlook
� Invested in Krungdhon Hospital Public Company Limite d (“KDH”) : 20.2%
� Project in Pipeline
� 60 beds hospital in Hua Hin to be completed in 2H11
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Operational StatisticsOperational Statistics
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5,591
5,997
5,633
5,061
5,3125,3025,373
5,114
5,399
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
Patient Revenue
Patient Revenue (THB mm) Revenue Contribution by Nationality
Commentary
35%
58%67% 65% 67% 63%
42%33% 37%33%
1Q09 2Q09 3Q09 4Q09 1Q10Thai International
� Highest patient revenue in 1Q10(+13% yoy) due mainl y to growth in Thai patients (+7% yoy) and international patients (+20% yoy)
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5%
13%
5%
-2%
-1%
1%
7%
14%
20%
2%0%
7%
1%
-6%-3%
1Q09 2Q09 3Q09 4Q09 1Q10
Total Thai International
% of Patient Revenue Growth ( YOY)
Commentary
� In 1Q10, international patient revenues grew signif icantly at 20% yoy
� Top 5 international patient revenues are from Japan , UK, UAE, Germany and USA which contribute 3.9%, 3.7%, 3.4%, 3.3% and 2.8% of total patient revenues respectively
� International patient revenues also grew significa ntly for Qatar(+238%), Australia (+60%) and Myanmar (+57%)
� During April & May 2010, patient revenues continue to grow ~3% yoy
Improving International Patient Revenue Trend
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Patient Revenue Breakdown By Patient Types
Patient Revenue By Patient Types (THB mm) Revenue Breakdown by Patient Types
Patient Revenue by Type of Payment – 1Q10Commentary
� IPD patient revenues grew significantly from
intensity and case mix
� Self-Pay continue to be the primary method of
payment
Selfpay 77%
Contract 8%
Others 2%
Insurance
14%
2,914 2,6953,104 3,005
3,360
2,504
2,2332,278 2,4462,389
1Q09 2Q09 3Q09 4Q09 1Q10
IPD OPD Others
5,633 5,5915,061
5,3125,997
+10% yoy
+15% yoy
56%54%55%53%55%
42%44%43% 44% 42%
1Q09 2Q09 3Q09 4Q09 1Q10
IPD OPD Others
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5,735
7,6428,887
9,650 9,950 9,787 10,103
2,2972,1381,9871,930989 1,516 1,714
2005 2006 2007 2008 2009 1Q09 1Q10
Overall International
Continued Focus on Volume GrowthNumber of OPD Visits per Day
+3% YoY
CAGR 15%
ADC (Average Daily Census)
797
1,0961,197
1,367 1,396 1,4761,351
415385144 261 306 352 343
2005 2006 2007 2008 2009 1Q09 1Q10
Overall International
+8% YoY
+9% YoY
CAGR 15%
+7% YoY
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Utilization of BedsAverage Length of Stay
Commentary
4.3 4.4 4.3 4.34.0
3.3 3.1 3.1 3.0 2.9
2006 2007 2008 2009 1Q10
International Overall
Utilization Based on Available Beds
2,300 2,300
61% 64%
0
500
1000
1500
2000
2009 1Q10
0%
50%
Available Beds Utilization
� Utilization rate during 1Q10 improved to 64% as a r esult of an increase in inpatient days
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Financial Financial HighlightsHighlights
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Revenue and EBITDA ContributionRevenue Breakdown in 1Q10
Commentary
EBITDA** Contribution in 1Q10
� During 1Q10, top 5 hospitals contributed 82% of tot al revenue and 84% of total EBITDA� Strong revenue growth in BPK(+32%), BTH(+21%), SNH( +20%), BKH(+20%), BPH(+15%) and BSH
(+15%)
* SVH included Samitivej Sukhumvit,Srinakarin and Sriracha** EBITDA is calculated from revenue from hospital operations + revenue from F&B + other income – cost from hospital operations – SG&A expenses
BNH6%
BKH3%
BCH2%
BPK9%
BPH12%
BMC31%
SVH *24%
BRH5%
BHH3%
BMC 31%
SVH * 21%BPH 15%
BPK 12%
BNH 5%
BRH 4%
BSH 3%
BHH 3%BCH 2%
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1,249 1,121 1,396 1,248 1,649
23.2%21.8%
27.0%
21.9%24.4%
0
200
400
600
800
1,000
1,200
1,400
1Q09 2Q09 3Q09 4Q09 1Q1010%11%12%13%14%15%16%17%18%19%20%21%22%23%24%25%26%27%28%29%30%
Quarterly Profitability Trend
Net Profit & Net Profit Margin (THB mm)
EBIT & EBIT Margin (TH B mm)EBITDA & EBITDA Margin (THB mm)
454 292 569 410 754
8.4%7.1%
9.8%
5.6%
12.2%
0
100
200
300
400
500
600
700
800
1Q09 2Q09 3Q09 4Q09 1Q10
-1%
1%
3%
5%
7%
9%
11%
13%
15%
723 585 894 770 1,194
13.4%13.3%15.4%
11.3%
19.3%
0
200
400
600
800
1000
1200
1Q09 2Q09 3Q09 4Q09 1Q10
5%
7%
9%
11%
13%
15%
17%
19%
21%
+66% yoy
+32% yoy
+65% yoy
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Capital Management Capital Structure as of Mar 10
� Leverage ratios (net debt/EBITDA and net debt/equity) are well within covenants
� Adopt a conservative approach to management of interest rate exposure
Commentary
Net Debt / EBITDA & Net Debt to Equity Interest Coverage
0.81.1
0.7
1.6
0.70.80.9
2.1
3.1 3.0
2.42.0
2005 2006 2007 2008 2009 1Q10
Net Debt/ Equity
Net Debt/EBITDA10.7
8.1 7.87.7
6.46.7
2005 2006 2007 2008 2009 1Q10
EBITDA/ Interest Expenses
Equity55%
Debentures
28%
LT loan12%
Convertible Bonds
4%
Others1%
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BDMS BDMS -- Corporate MarketingCorporate Marketing
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BDMS - Corporate Marketing
� Corporate Marketing• Investing in People
� Corporate Business Units• Centralized client relationship management • Leverage relationships
� Enhance our STRENGTH as a GROUP• 18 hospitals - 2 countries - 4 brands
A Strong Start to 2010 . . . . . .A Strong Start to 2010 . . . . . .
Technological DevelopmentsTechnological Developments
→ NEW - BDMS corporate web site• Reach our global audience• Image & perception
→ NEW - CRM system• Data ‘pooling’, profiling & segmentation• Powerful mass media ability
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→ Promote partnerships / strategic alliances→ Leading medical tourism provider
Develop & maintain visibility in the global communi ty…..
Our International MarketingOur International Marketing
Our Domestic MarketingOur Domestic Marketing
� “Chivawattana”• Our valued customer / loyalty program• Reviewing & enhancing
� Develop our local market share• Domestic promotions• Focus on our GROUP, QUALITY & PRICE• “Happy Health, Happy Life” Health check-up (THB 1,80 0)
BDMS - Corporate Marketing
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For more information & updates :- www.bangkokhospita l.com