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Bumrungrad Hospital Public CompanyLimited
InvestorPresentation
March 2015
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Disclaimer• The information contained in this presentation is for information purposes only and does not constitute an
oer or invitation to sell or
the solicitation of an oer or invitation to purchase or subscribe for any securities of Bumrungrad HospitalPublic Company Limited (the
"Company ") in any urisdiction nor should it or any part of it form the basis of! or be relied upon inconnection ith! any contract or
commitment hatsoever#
• This presentation is being communicated only to persons ho have professional e$perience in mattersrelating to investments and%or
to persons to hom it is laful to communicate it under the las of applicable urisdictions # &ther persons
should not rely or act upon
this presentation or any of its contents#
• Certain information and statements made in this presentation contain the Company's forardlooingstatements# *ll forardlooing
statements are the Company's current e$pectation of future events and are subect to a number of factorsthat could cause actual
results to dier materially from those described in the forardlooing statements# Prospective investors
should tae care ith respect
to such statements and should not place undue reliance on any such forardlooing statements#
• This presentation has been prepared by the Company solely for the use at this presentation# The information
in this presentation hasnot been independently veri+ed# ,o representation! arranty! e$press or implied! is made as to! and no
reliance should be placed on!
the fairness! accuracy! completeness or correctness of the information and opinions in this presentation# ,one
of the Company! any of
its a-liates or any of their respective agents! advisors or representatives! shall have any liability (innegligence or otherise) for any
loss or damage hosoever arising from any use of this presentation or its contents or otherise arising
in connection ith this
presentation# The information presented or contained in this presentation is current as of the date hereof
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and is subect to change
ithout notice and its accuracy is not guaranteed# ,one of the Company! any of its a-liates or any of their
respective agents! advisors
or representatives! maes any undertaing to update any such information subse.uent to the date hereof#
• This presentation should not be construed as legal! ta$! investment or other advice# ,o part of this presentation shall be relied upon
directly or indirectly for any investment decisionmaing or for any other purposes# Prospective investorsshould undertae their on
assessment ith regard to any investment and should obtain independent advice on any such investment/ssuitability! inherent riss
and merits and any ta$! legal and accounting implications hich it may have for them#
• Certain data in this presentation ere obtained from various e$ternal data sources! and none of the
Company! any of its a-liates or
any of their respective agents! advisors or representatives have veri+ed such data ith independent sources#
*ccordingly! the Company
maes no representation as to the accuracy or completeness of those data! and such data involve rissand uncertainties and are
subect to change based on various factors#
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Agenda
Overview
Strategy
Operational Update
Financial Perormance
!ssociated Companies
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c"stomer service oriented patient care
Established in 1980; listed on SET in 1989
Bumrungrad International Hospitalo acilities
• One of the largest and mostsophisticated private
hospitals in South-East sia• !80 licensed inpatient beds and !"!00
outpatientvisit capacit# per da#
• Thailand$s leading tertiar# medicalcenter
• %ed &ross rated '&lass ( tertiar# carecenter; a
regional referral centero Accreditation
• 1st hospital in sia to receive )S *&+ccreditation" in ,00, %e-accredited b#
the *&+ in,00!" ,008" ,011 and ,01. *&+/
isease-Specific$&ertication" heart and stro2e programs
3since,0045; &hronic 6idne# isease and
iabetes7ellitus 3since ,0105
• 1st
private hospital in Thailand ith Thaiospital
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ccreditation 319995o Patients
• Over 11 million patient episodesannuall#
• Over !00"000 international patientepisodes
annuall# from over ,00 countrieso
!er"ices• !! Sub-Specialties
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#alue $ Pro%tability Comparison
E:bed 37<bed5 =,01.
2&&
1'&
1(&
1)&
12&
1&&
'&
(&
)&S6%
6>*
?OE
) ( ' 1& 12
*2&1) +BI,DA -argin
Source@ +<ES<loomberg" SET
Aote@ Thai hospital$s E<+T margins are unadBusted for doctor revenue
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/0+ $ PB Comparison
3
3&
2
AT:
&7%
6>*
7-&+
+
?OE
2 3
Price to Boo
Source@ +<ES<loomberg" SET
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(
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,0P 1& /+GI04! H+AL,H CA/+ P/0#ID+/! B*-A/5+, #AL6+
C0-PA*C06,/*
IHH H+AL,HCA/+-ALA*!IA
/A-!A* H+AL,HCA/+A6!,/ALIA
BAG505 D6!I, -+DICAL !+/#IC+!,HAILAD
B6-/6G/AD H0!PI,AL,HAILAD
AP0LL0 H0!PI,AL!IDIA
P/I-A/* H+AL,H CA/+A6!,/ALIA
/AL+! -+DICAL G/06P!IGAP0/+
!IL0A- I,+/A,I0AL H0!PI,AL!ID0+!IA
5P7 H+A,LHCA/+-ALA*!IA
0/,I! H+AL,HCA/+IDIA
Sales are estimates for #ear ending ec C1; 7ar2et value as of ug 18
Sales for #ear ended *un C0 are estimated for %amsa#" nal for primar#
?inal sales for #ear ended 7ar C1
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Source@ ?orbes
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International #olumes2&&1 to 2&1)
.C1"9!. .,4"C98
C91"!!9C4!"C84
C00"000
,00"000
100"000
-
,00. ,00! ,004 ,00D
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• 01234 Top 32 revenue contribution by 5esidency
and ,ationality
/esidency ationality
Thailand .D9 Thailand
C89
)E 88 7#anmar 8.
7#anmar 8! )E 48
Oman 4. Oman 44
&ambodia C! )S .8
<angladesh C, &ambodiaC,
7ongolia ,, <angladesh
C,
)S ,0 *apan ,4
Fatar ,0 )6 ,C
6uait 18 Fatar 18
!C
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1F1. ,F1. CF1. .F1.
+nternational Thai
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:;y Bumrungrad<
G Hocated in Thailand
G +nvested the Time
G +nvested into the
<rand
G +nvested into Training
G +nvested into
Technolog#
G +nvested into
?acilities
G +nvested into
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>rocesses
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,;ailand4s uni=ue ad"antages
G Iood doctors
G Hoer cost labor
G Service culture
G +mage as value destination ith good tourism
infrastructure
G &onsumer-driven healthcare
G Self pa#" al2 in environment
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Doctors $ urses
• !! Sub-Specialties
• Over ,"000 nurses and professional staJ
• Over 1"C00 ph#sicians and dentists• +nternational eKperience staJ and
overseas board certication 3over C,0 are)S" )6 or ustralian <oard certied5
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International reputation
Inside -an
6The top destination hospitals are designed to
be models of e-ciency7
C;ina Daily
6 *ordable and high .uality medical care ishelping to
entice visitors to the *89*, region7
International Herald ,ribune
6:t/s better than anything :/ve seen; it/s a +vestar hospital#7
CB! (& -inutes
6:t/s the number one international hospital inthe "orld#7
,;e inancial ,imes
6They (Bumrungrad) said! <you can have(surgery) done
tomorro" if you "ant ./ Tomorro"= : have never
heard that
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"ord in 9ngland in all my life#7
e>s>ee
6Bumrungrad :nternational Hospital in Bangois a magnet
for medical tourists#7
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In"ested in ,ec;nology ? Integrated!er"ices
Laboratory Automation!ystem@
Abbott ACC+L+/A,0/
a3(&&
Hospital>ide :ii recordaccess in e"ery room
!>isslog p;armacyrobot
1stop c;ecup center cas;ier
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p;armacy on e"ery 0PD oor
!ingle patient record uni%edHI!
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In"ested in ,ec;nology :ebsite
G :isual eKperience on eb@ pic2 #our doctor or
#our room
G +nformation about medical procedures or
specialt# centers
G &ost estimates
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Premium Inpatient acilities
&ustomer-oriented patient
service culture supported b#
hotel-li2e ambience in a
arm and restful
environment
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+Epansi"e 0utpatient acilities
Large scale outpatient Facilities allo> eEtensi"e "ariety oF ser"ices >it;pri"acy comFort and eciency
!yLobby
Ground loor Lobby
:elcome Center
P I i l / F l 0F%
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Processes International /eFerral 0F%ces
26 offices in 17 countries outside Thailand
that arrange appointments and travel for BI
patients
G Australia G 5u>ait
G Ba;rain G Lao PD/
G Banglades; G -ongolia
G Cambodia 3 G -yanmar )
G C;ina 2 G 0man
G +t;iopia G /ussia 2
G Hong 5ong G 6A+ Dubai
G Indonesia 2 G #ietnam 2
G 5aJa;stan
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Processes Healt; !creening Center
G 7anaged using &onstraint Theor#
G Entr# portal for medical travelers
G One-stop Loor for a complete
chec2-up
G verage ,00 per da#" D da#s a ee2
G !0 al2Min
G Onl# screening services M Ao
acute
services
G Ao variation in screening
services"
based on medical evidence
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A d
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Agenda
Overview
Strategy
Operational Update
Financial Perormance
!ssociated Companies
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• &us eKpansion
• octor recruitment in subspecialties• dvanced technolog#
• S2illed or2 force
• evelopment of the <umrungrad Aetor2• Heverage economies of scale in 2noledge
• Evolve )< Songdo into a regional hospital
• evelop a iagnostic &linic in 7#anmar
• %evie of selective opportunities ineKisting
referral mar2ets
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• Opened ! Loors in <umrungrad +nternational
&linic
• %enovate and eKpand clinics in <umrungrad
+nternational ospital
• dded 18 +&) beds and !8 ard beds in
<umrungrad+nternational ospital building
• %enovate and eKpand ancillar# services
• <ought 8",00 sN meters of land on >etchburi
%oad
• E+ approval received
• <ought 4"1D8 sN meters of land on Su2humvit
Soi 1 to initiall# develop a par2ing structure
• Irand opening of <umrungrad Toer on 4 7arch
,01!for emplo#ee houses and bac2 oce functions
• cNuired controlling interest in )< Songdo
hospital
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hospital
*1 *1( *18 *1' ,otal
1"!98 C",C1 ."!!0 C9,
9"DD1
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E+ pproval as obtained for
the>etchburi &us on ,9
*anuar#
,01!
G >hase 1 of the Soi 1development
ill be a par2ing structure
G %enovate <% ith clinicalactivit#
on C Loors 3if alloed b# <7
and
7O>5 and replacing the 7E>
infrastructure
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3
Campus +Epansion BI Hospital Building
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Campus +Epansion ? BI Hospital Building
• dded 18 +&) beds and !8 ardbedsin <umrungrad +nternational
ospitalbuilding
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Campus +Epansion ,;e ne> Li"er Center
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Campus +Epansion ? ,;e ne> Li"er Center
• The ne Hiver &enter hasbeen opened on the third
Loor" <+ ospital <uilding
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,ec;nology ? IB- :atson
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,ec;nology ? IB- :atson0ncology
• cognitive computing s#stem
developed
collaborativel# b# +<7 and 7emorialSloan 6ettering" one of the orld$sleading cancer center
• nal#Pes information from the
medical
literature" international treatmentguidelines and recogniPed orld
eKperts
• +ntegrates patient information into
the
anal#sis and ma2es individualiPed
treatment recommendation to
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treatment recommendation toprovide
state of the art care ith the bestoutcome for <umrungrad patients
ithcancer
!illed :orForce
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!illed :orForce
• uniNue /Simulation Training &enter$ <umrungrad is Thailand$srst private
hospital to use such an innovative training facilit# to improvepatient care
• currentl# eNuipped ith the latest version full bod# mani2in andinfant mani2in
hich can simulate more than 40 2e# situations including pulse"heart rate"
pulmonar# sound" seating" tearing" and purple nails
• The simulation center can accommodate registered nurses up to
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g peight sessions
per da#
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• < entered into the onation forEducational
Support greement ith St Houis &ollegeto
donate 49 7< for eKpansion of nursetraining
program and facilities of St Houis &ollegehich
ill provide an addition 40 nurse studentsper #ear
• < ill offer scholarships andemplo#ment
program for those 40 nurse students
• This cooperation ill secure nursing staffs
for <
• Established a ne subsidiar# for
education and
training in clinical and healthcare service
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• ?ocused on improving and eKpanding thegroup
of companies training capabilities
• >rovide training services to outside
parties
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Current !tatus ? Petc;buri ProKect
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Current !tatus Petc;buri ProKect
• E+ pproval as obtainedfor
the >etchburi &us on,9
*anuar# ,01!
• The E+ pproval allos@
• 100 ?%@ 8",0. K 8 Q
4!"4C, m,
• 19, <onus ?% Q1,"401 m,
• 7aKimum ?% Q D8",CC
m,
• &onstruction rea is li2el#to be
around 8!"000 m,
• &onstruction eKpected to
start in
Aovember ,01!
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Current !tatus ? !oi 1 Paring Lot ProKect
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Current !tatus !oi 1 Paring Lot ProKect
Hand ban2 Soi 1 ith phase 1development of a par2ingstructure
PG.3
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Bumrungrad ,o>er
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Bumrungrad ,o>er
• <umrungrad Toer on %ama +:road
• ,C-store# building in goodcondition
• Hand area C"C48 sNm
• Total building area of .0"4!0 sNmill
accommodate
- C00-.00 bac2 oce emplo#ees
- orm rooms for over 1"000
emplo#ee
• %enovation cost approK ,,0 7<• Irand opening of <umrungrad
Toer on4 7arch ,01! for emplo#ee houses
and
bac2 oce functions
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1
Agenda
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Agenda
Overview
Strategy
Operational Update
Financial Perormance
!ssociated Companies
PG.3
2
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)t; uarter@ Outpatient volumes
advanced
1.9 in .F1. compared ith .F1C"ith
most of the increase due to volumes
contributed b# the )<S acNuisition"
and
strong groth in international
volumesEKcluding )<S" outpatient volumes
gre
CD in .F1.
2Q 3Q 4Q 4Q(inc. !" (inc. !" (inc. !" (e#c.!"
*,D Dec@ Outpatient volumesadvanced D!
in ,01. compared ith ,01C as aresult of
volumes added b# the )<S
acNuisition
EKcluding )<S volumes" outpatient
volumes
declined 1! in ,01.
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(e#c. !"
PG.3
3
Admissions #olume ,rend
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A"erage Admissions per Day
)t; uarter@ +npatient volumesadvanced
198 in .F1. compared ith .F1C"ith
most of the increase due to volumes
contributed b# the )<S acNuisition"and
strong groth in international
volumes
EKcluding )<S" inpatient volumes gre
D. in .F1.1Q
2014
*,D Dec@ +npatient volumes advanced11,
in ,01. compared ith ,01C as aresult of
volumes added b# the )<SacNuisition
EKcluding )<S volumes" inpatient
volume
gre 18 in ,01.
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PG.3
)
A"erage Daily Census #olume ,rend
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g y
A"erage Daily Census
)t; uarter@ & advanced 19D in
.F1.
compared ith .F1C" ith most ofthe
increase due to volumes contributed
b# the
)<S acNuisition" and strong
groth in international volumes EKcluding
)<S" &
gre CD in .F1.
2013 2014
*,D Dec@ & advanced 1,, in
,01.compared ith ,01C" ith most of
the
increase due to volumes contributed
b# the
)<S acNuisition EKcluding )<S" &
gre 0C in ,01.
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370
(e#c. !"
2013 2014
PG.3
0PD /e"enue Intensity
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/e"enue per #isit
5evenue per episode re>ects an increase
from the
3st ?an 1234 price adustment #
&P@ 5evenue intensity A
#th $"arter % & ' 'ec
:ncluding HH9 Consolidated 8 #2D E#FD
9$cluding HH9 Consolidated 8 1#3D 3#D2013 2014
/e"enue per #isit
13.2$
Bt
9,000
8,000
7,000
6,000
5,000
4,000
(inc. !"2012 2013 2014
PG.3
(
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IPD /e"enue Intensity
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/e"enue per Admission
5evenue per episode re>ects an
increase from the
3st ?an 1234 price adustment #
:P@ 5evenue intensity per admissionA
#th $"arter % & ''ec
:ncluding HH9 Consolidated 8 33#GD
#D
9$cluding HH9 Consolidated 8 2#GD
3#D
Bt
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2012 2013 2014
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• or 4I34A 5evenues by maret segmentinternational patients
accounted for G#1D of the total in 4I34! ith the
remainingG#ED from Thai patients! reflecting a decrease in
the GF#3D
from Thai patients in 4I3G! and the noted
improvement of the
international business#
• 1234 Top J revenue contribution by ,onThai
,ationalities
7#anmar 8
)E D
Oman D
#olume Contribution by ationality
100
80
40
.0
,0
0
CF1C .F1C 1F1. ,F1. CF1. .F1.
+nternational Thai
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PG.3
'
/e"enue Breado>n
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Inpatient vs. %utpatient ($ of revenue"
100
!, !, !,
.8 .8 .8
CF1C .F1C 1F1. ,F1. CF1. .F1.+npatient Outpatient
Y2014
4I34 5evenue grothA
R &utpatient revenue increased by 34#4D yoy
R :npatient revenue increased by 3G#FD yoy
8elfpay remains the primary method of payment
PG.3
9
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Agenda
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Overview
Strategy
Operational Update
Financial Perormance
!ssociated Companies
PG.)
&
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0perating PerFormance
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2&1&2&1),otal /e"enues
12$ &')
14,042790
13,252
11,306
2011 2012*
* One-time revenue of THB 790 million in 2012 w! "in on !le of inve!tment in !u#!i$ir%&
Remark: The calculation of CAGR is excluding the extraordinary items.
Pro%t3,000
2,730
2,500
2,000
1,500
1,000
500
0
2010* 2011** 2012*** 2013 2014* One-time lo!! of THB 63 million in 2010 w! lo!! on t'e trn!ltion $(u!tment from t'e !le of )!i
enl +re )+ .rou/
** One-time /rofit of THB 33 million in 2011 w! t lo!! on !le of B+ THB 106 million off!et wit' lo!!
on !le of )H THB 24 million n$ lo!! on !'re re/ur'!e THB 50 million
*** One-time /rofit of THB 548 million in 2012 w! "in on !le of inve!tment H, net of t THB 567
million off!et wit' /itl "in t n$ t $vi!or% !ervie! on )H !le THB 14 million n$ ertin win$
$own n$ o/ertion o!t! of B THB 5 million&
Remark: The calculation of CAGR is excluding the extraordinary items.
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-argins $ ,rend
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+BI,DA -argin
,rend
28.8M
1. 1M
2&12N 2&13 2&1)EKcluding eKtraordinar#
items
Margins have (een growing over the last 5 years
PG.)
2
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T< million
."400
."!00
.".00
."C00
.",00
."100
."000C"900C"800C"D00
• Cost of hospital operations (including @epreciation and
amortiKation) of Baht
F!4F million for 1234! or #JD more yearoveryear from BahtE!EG million in
123G! compared to the F#GD gro"th in 5evenues from hospitaloperations# The
percentage of Cost of hospital operations to 5evenues fromhospital operations
improved from 1#2D in 123G to 3#2D in 1234# *dministrative e$penses
(including @epreciation and amortiKation) ere Baht 1!E2
million in 1234!
increasing 33#2D from Baht 1!J1 million in 123G# This changeincluded Baht 4
million in additional repair and maintenance e$pense! Baht
F million in
donations to support nurse recruitment! Baht 4G million inin>ationary increases
in sta cost! Baht 1F million in @epreciation and amortiKationassociated "ith
the campus e$pansion and revised estimated useful lives of
certain assets! and
Baht 12 million more in soft"are support and maintenance#9B:T@* gre" 31#4D
yearoveryear from Baht 4 23 million in 123G to Baht 4 J3
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yearoveryear from Baht 4!23 million in 123G to Baht 4!J3
million in 1234!
ith the 9B:T@* margin advancing to 1E#D in 1234 comparedith 1#D in
123G#
Le"erage
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et Debt to +BI,DA
3.9
&.)
1).9
&.&&
2&1& 2&11 2&13 2&1)
2&1& 2&11
:nterest e$pense related to the purchase of common shares of BangoChain Hospital PCL
(doing business as "Masemrad Hospital Nroup") to calculate interestcoverage ratio as Baht
333 million based on remaining days after the transaction settled# *ssuming this interest
e$pense as incurred for the full year! interest e$pense from thistransaction ould be Baht
342 million and interest coverage ratio ill be 31#F$*fter adding bac the 1234 and 123G capitaliKed interest e$pense
related to the campuse$pansion#
*s a result of the increase in Cash and cash e.uivalents!
,et debt toe.uity improved to 2#2$ as at G3 @ecember 1234 from
2#1$ as at G3@ecember 123G#
*fter adding bac the 1234 and 123G capitaliKedinterest e$pense
related to the campus e$pansion of Baht JJ million
and Baht F
million! respectively! the Company/s :nterest coverageratio improved
to 3E#E$ in 1234 from 3#4$ in 123G! due to higher
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9B:T@* in 1234compared to 123G#
,oteA ,et debt e$cludes +$ed deposits ith a maturity e$ceeding three months butnot more than one year hich are reported as 8hortterm investments of Baht3!F11 million in 1234 and Baht 1!3E million in 123G#
PG.)
)
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The current dividend pa#out ratiohas
slightl# decreased from ,01C
0&88
*.4+
*.4*
2009
,a-out )atio
80
60
4./$
40
20
0
2009
PG.)
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Agenda
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Overview
Strategy
Operational Update
Financial Perormance
!ssociated Companies
PG.)
(
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In"estment in -ongolia
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On ,8 7arch ,01." ealth oriPons Enterprises >te Htd 3'E(5" anoverseas
subsidiar# 80 oned b# the &ompan#" acNuired 100 of the common
shares of <umrungrad 7ongolia HH& 3'<7H(5" hich holds !1 of the common shares
of Seoul
Seniors Toer HH& 3'SST(5" for approKimatel# )S 1, million in cashdditionall#" E
provided a loan of )S CC million to SST" hich ons and operates)laanbaatar Songdo
ospital 3')<S(5 in 7ongolia
The seller of shares of SST is entitled to receive additional contingent
consideration in
the form of earn-out pa#ments" provided certain cumulative net prot targets
are achieved
through ecember C1" ,014" at the maKimum of 7AT 10"94!9 million" hich
has not #et
been recorded
E$s consolidated assets and liabilities" hich include SST and <7H
as of the
acNuisition date" are included in the &ompan#$s consolidated nancial
statements for 1F1.
E has recorded the net tangible assets of SST and <7H acNuired at their fair
values as of
the acNuisition date The remaining eKcess of the purchase price over the net
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the acNuisition date The remaining eKcess of the purchase price over the net
value of the
tangible assets acNuired as allocated as goodill The preliminar# amountof goodill"
hich eKcludes an# impact from additional contingent consideration" isapproKimatel# )S
C! million
PG.)
8
6laanbaatar !ongdo Hospital 6B!D
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Corporate !tructure
• <7H acNuired !1 of common shares of Seoul Seniors Toer HH&'SST(" ho ons
and operates )< Songdo on ,8 7arch ,01.
• )< Songdo currentl# has 98 beds" diagnostic imaging" and 40 doctorsin maBor
medical specialties both inpatient and outpatient care
• One of . hospitals and onl# private hospital in 7ongolia ith a
nationide general
hospital license
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PG.)
'