PRARAM 9 HOSPITAL Opportunity Day : 3Q19 Results

11 December 2019

Website

VISION &

MILESTONES

THB 200 mm Rights offering

1st private hospital with 64 Slice CT Scan

Implementation of Pharmacy Robot

Signed Kidney referral MOUs

Started new building construction

1st private hospital with 640 Slice CT Scan

500 Kidney Transplant Cases

Started using 4D Ultrasound

2016 2018 2017 2013 2004 1992 2001 2005

Started hospital operation

Listed in the Stock Exchange of Thailand

2019

W9 Wellness Center

Joint Care Center

Excellence CG Scoring

Professional Healthcare Community ใส่ใจสขุภาพ ดูแลดว้ยมอือาชพี

P.2

Key Strategies

Brand Awareness

2

3

Operational Statistics & Financial Performance 4

Overview & PR9’s Strengths 1

Agenda

P.3

Key Strategies

Brand Awareness

2

3

Operational Statistics & Financial Performance 4

Overview & PR9’s Strengths 1

Agenda

P.4

Overview 2 Medical Institutes plus 22 Medical Centers

Tertiary-care hospital with world class medical quality (both general and complex treatments)

Me

dic

al

Ac

cre

dit

ati

on

T

ech

no

log

y

Oth

er

Ke

y A

ch

ieve

me

nts

2010 / 2013 / 2016 / 2019 – JCI 4th accredited

2016 / 2019 - CCPC: Kidney

2000 - ISO 9001:1994 2003 - ISO 9001:2000

2004 / 2007 - HA Level 3

− 2017 : 640-slice CT Scan − 2016 : Pharmacy Robot − 2005 : 64-slice CT Scan − 2004 : 4D Ultrasound

2017: Best Utilization Award

AXA Provider Award

2019: Thailand Top Company Awards 2019 (Healthcare Sector)

Business+ magazine & University of the Thai Chamber of

Commerce

2017: Fertility Service Provider of the Year

Global Health and Travel Awards 2017

Imaging Center

(X-Ray)

Mind Center

Breast Clinic Hair Center

Eye Center

Obstetric

Gynecology Center

Orthopedic

Center

Medical Center

Surgery Center Pediatrics

Center

Ear Nose and

Throat Center

Dental Center Check-Up

Center

Skin Rejuvenation

Cosmetic Laser

Surgery &

Dermatology Center

Rehabilitation Center

Emergency Center

Gastroenterology

(GI)

and Hepatobiliary

(Liver)

Neurology

Center

Diabetes Metabolic

Center

Thyroid Center

Cardiovascular

Institute Kidney Transplant

Institute

W9 Wellness Center

Joint Care

Center

2018: Thailand Top Company Awards 2018 (Healthcare Sector)

Business+ magazine & University of the Thai Chamber of

Commerce

2019: Excellent CG Scoring

The Stock Exchange of Thailand & Thai Institute of Directors

P.5

JCI Accreditation

JCI Accreditation - Hospital Program Since 2010 The 4th Accredited : 22 November 2019

Clinical Care Program Certification: Kidney The 2nd Accredited : 26 November 2019

P.6

Praram 9 Hospital PCL was the only one new listed company, received the 5-Star CG Scoring from IOD (The Thai Institute of Directors Association (IOD), with support from the Stock Exchange of Thailand (SET), announced its 2019 CGR findings covering 677 listed companies on 28 Oct 2019.)

http://www.thai-iod.com/imgUpload/Brochure%20CGR%202019%2014%20Nov%2019(2).pdf Source: The Thai Institute of Directors Association / Publications

Excellent CG Scoring

P.7

PR9’s Strengths

Complex Medical Treatments • Tertiary-care hospital with world class medical quality & Excellence Doctors JCI Accreditation plus specialty accreditation (Kidney Transplant Institute)

Value for Money Services • PR9’s Pricing policy with International Standard of tertiary care and high class service quality => Green Hospital Rating : Department of Internal Trade, Ministry of Commerce

Strategic Location in New CBD • Prime location with strong healthcare demand and promising growth opportunities => High density populated area (office building / residential commute / embassy / life-style center etc.), including the new Chinese expat community

P.8

Complex Medical Treatments & Excellence Doctors

โรคซับซ้อน โรคเรื้อรัง เราเชี่ยวชาญ

P.9

Value for Money Services

https://hospitals.dit.go.th/app/drug_price_search.php

Source: Department of Internal Trade, Ministry of Commerce

Received the “Green-Rated” Hospital From Department of Internal Trade, Ministry of Commerce

Offer Friendly Medicine Pricing for Our Patients

P.11

Strategic Location in New CBD Located in New CBD area &

New China-Town (Huai Khwang-Ratchada)

Note (1): Include Huaykwang, Makkasan, Klong Teoy Nuea, Klong Tun Nuea, Bangkapi, Dindang area

P.12

Key Strategies

Brand Awareness

2

3

Operational Statistics & Financial Performance 4

Overview & PR9’s Strengths 1

Agenda

P.13

PR9 Key Strategies

Top Line Initiatives

Hospital Network Expansion and Medical Cooperation Increase Corporate and Insurance Coverage International Patients Expansion

21 step down ICU beds

81 normal ward beds

24 ICU/CCU beds

21 normal ward beds

21 normal ward beds

Leverage expertise to build new customers base

Enhance medical treatment quality in the long term

Scope and

Scale Expansion

Comprehensive medical check-up program

Joint Care Center Wellness Center Pain & Rehab Center Allergy Center

Margin Expansion

Increase capacity utilization which will result in lower unit cost Increase service intensity Digital Hospital Transformation

Revitalizing Brand Awareness

2018 2019E 2020E 2022E 2021E

1

2

3

P.14

Where we are today Where we want to be

New Building (Wellness & Life Style)

Renovated Existing Building

(Chronic)

Offer Comprehensive Medical Services Health Promotion/ Disease Prevention / Curative Medicine / Rehabilitation

Recognized complex medical treatments providers

Health Promotion Disease Prevention Curative Medicine Rehabilitation

Leverage expertise to build new customers base • Lifestyle Medical Center • Aging-related Medical Center • Cancer Center

A B

Scale and scope of services expansion 1

Land : 2-3-89 Rai Usable Area : 24,500 m2

OPD Room : 83 Exam Rooms IPD Room : 59 Ward Beds Parking : 381 Cars

Land : 6-0-74 Rai Usable Area : 32,825 m2

OPD Room : 114 Exam Rooms IPD Room : 166 Ward Beds (plus 88 beds : future project) Parking : 449 Cars

P.15

Projects in Pipeline

Project Type Details Approx. Period Total Cost

(THB mm)

1) Renovation of existing

building

Upgrade /

Renovate

Under construction

21 Step Down ICU beds – FL9

21 Normal ward beds – FL11

10 Normal ward beds – FL10

2018 – 2019 137

Future Projects

24 ICU & CCU beds

42 Normal ward beds

Re-Façade

2020 – 2022 235

2) New building New 16-story building with 2 underground floors 2017 - Q4/2019 2,343

3) Home Office New 6-story office building for back-office personnel 2018 - Q4/2019 70

4) Nurse Condominium New 8-story nurse condominium, approx. 80 rooms 2018 – 2019 200

5) Digital Hospital Upgrade Strategy for digital transformation 2018 - 2020 50

P.16

Construction Progress – Building 2

: November 2019

P.17

New Hospital Building

Phase I B2 - B1 : Parking, Community Lounge, Food Court Fl.1 – Fl.2 : Registration, ER, Event Space, Retail, Parking Fl.3 – Fl.6 : Parking Fl.8 : Pharmacy, Cashier Fl.9 : Hair Center, Skin Center, Mind Center, X-ray, Lab Fl.11 : Pain Management & Wellness Center Fl.14 : Data center, IT Fl.17 : IPD Ward, VIP Lounge Phase II Fl.7 : GI Scope, OR, Recovery Room Fl.8 : OPD GI, EYE Center, ENT Center Fl.10 : OPD Pediatric, Dental Center Fl.12 : Check-up Fl.14 : Function Area, Executive Office, IPD Pharmacy Fl.15 : IPD Ward, VIP Room

Total Area : 39,300 m2

Usable Area : 24,500 m2

OPD Room : 83 Exam Rooms IPD Room : 59 Ward Beds Parking : 381 Cars

P.18

Plaza

Relaxing Lobby

Welcome Hall

Check Up Center

Check Up Center

VIP Lounge

IPD Room

IPD Room - VIP

Building 2

P.19

Construction Progress – Building 2

: IPD Room 17Fl. : Exam Room 9Fl.

P.20

Comprehensive clinical programs for both pain

& wellness program

Manuthera Manipulation Bed

Hydrotherapy

Ice Lab Transcranial Magnetic

Pain Treatment Wellness Program

Yoga Fitness

PR9 Pain Management & Wellness Center (11 Fl.)

P.21

: Back Office Building

: Nurse Condominium Construction Progress

P.22

Top Line

Initiatives

Network

Expansion &

Cooperation

Corporate

& Insurance

Coverage

Int’l

Patient Expansion

1. New Market Penetration

2. Product Customization

3. Online Channel Enhancement

4. Marketing Activities

5. Customer Relationship Program

Top Line Initiatives 2

P.23

No. of Kidney transplant cases

Network Expansion and Medical Cooperation

Medical Network for Kidney Transplant

Wellness Cooperation

78 77

11M/2018 11M/2019

P.24

Remark: 14 cases in Nov 2019 was the highest record of Kidney transplant cases in a month

LOCAL MARKETING & E-MKT PROGRESS Jul. - Sep. 2019

- Promotion Campaign : 27th Anniversary Packages - Occasional Campaign : By SBU - GI pack > Jul. - Mother days > Aug. - Heart Screening > Sep. - Special Package : Joint Care Center (TKA)

Domestic Marketing Division

Domestic Patients

P.25

Corporate Customer Marketing Activities - Health Education Seminar - Customized packages for corporate customers

บริษัท ทีจีเอส เอ็นเตอร์ไพรส์ เน็ตเวิร์ค จ ากัด

บรรยายหัวข้อ “คนยคุใหม ่รู้ทันเบาหวาน” โดย แพทย์หญิงอารีสา มโนชญ์ปิติพงศ์ อายุรแพทย์ผู้เชี่ยวชาญด้านโรคต้อมไร้ท้อ และเมตาบอลิซึ่ม ศูนย์เบาหวานและเมตาบอลิก

ธนาคารไทยพาณิชย์ ส านักงานใหญ่

บรรยายหัวข้อเรื่อง " โรคไต...ภยัรา้ยใกลต้วัคนออฟฟศิ " โดย แพทย์หญิงผ่องพรรณ ทานาค

แพทย์ผู้เช่ียวชาญ สถาบันโรคไตและเปลี่ยนไต พระรามเก้า ผู้เข้าร่วมงานจ านวน 446 ท่าน

P.26

Insurance Customer - Customer Trusted Card Distribution - Health Seminar - Customized Packages for Insurance

ผู้แทนประกัน จากบริษัทประกันชั้นน าในเมืองไทย

ยอด Active : ตัวแทนขอสว่นลด Insurance trusted card ตั้งแต่ 1 ม.ค.61 – ปัจจุบัน = 591 คน / จากสมาชิกตัวแทน 1,668 คน

บัตร Insurance trusted card เป็นบัตรสว่นลดประกนัหลงั fax claim, สามารถลดค่าหอ้ง 20% ค่ายากลบับา้น 5%

P.27

Insurance Customer – Activities

P.28

1st event at Zhengzhou Changjiang Infertility hospital

CHINESE MARKETING PROGRESS

2nd event at Taiyuan Tianlun Infertility hospital

The next activities will be held on 13th-16th Dec. 2019 in Quanzhou & Shanghai

P.29

Margin Expansion 3

Increase capacity utilization Increase service intensity Digital Hospital Transformation

Queue Management System

Step Down ICU beds Digital Hospital Transformation

P.30

Key Strategies

Brand Awareness

2

3

Operational Statistics & Financial Performance 4

Overview & PR9’s Strengths 1

Agenda

P.31

Brand Awareness

P.32

Brand Essence

P.33

Key Strategies

Brand Awareness

2

3

Operational Statistics & Financial Performance 4

Overview & PR9’s Strengths 1

Agenda

P.34

145.9 150.6 345.7 377.9

-0.050.050.150.250.350.450.550.650.750.850.95

0.0100.0200.0300.0400.0

3Q2018 3Q2019 9M2018 9M2019

710.8 743.5

0.0500.0

3Q2018 3Q2019

Financial Summary PR9 reported total medical revenue in 3Q2019 of Baht 743.5

million, an increase of 4.6% from 3Q2018. This was mainly from an increase of OPD revenue 8.0% yoy, while IPD revenue in 3Q19 slightly increased at 0.5% yoy.

Medical revenue from international patients grew 11.1% yoy. While insurance and corporate contract payment methods keep

growing at 10.7% and 24.7% yoy, respectively as a result of marketing campaigns and marketing activities.

Med

ical R

even

ue

EBIT

DA

Net P

rofit

PR9 reported EBITDA in 3Q2019 of Baht 150.6 million, an increase of 3.2% from Baht 145.9 million in 3Q2018, while the EBITDA margin were 20.0% in 3Q2019 and 20.4% in 3Q2018.

PR9 reported net profits for the period Baht 88.8 million, an increase of 1.6% from Baht 87.3 million in 3Q2018, representing the net profit margin for the period of 11.8% and 12.2% respectively.

19.0% 405.5

0.0

500.0

9M2018 9M2019

1,988.7 2,109.3

20.4% 20.0% 17.2% 17.7% 18.5%

372.1

87.3 88.8 189.9 210.6

-0.050.050.150.250.350.450.550.650.750.850.95

0.0100.0200.0300.0400.0

3Q2018 3Q2019 9M2018 9M2019

10.9% 232.7

12.2% 11.8% 9.4% 9.9% 10.5% 211.1

P.35

Total Revenue

Total Revenue

349 353 388 405 374 376 419

1,090 1,169 293 283 323 308 321 295 324

899 940

11 6 5 10 9 9 10

23 28

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19OPD Revenue IPD Revenue Other revenue

Unit: THB mm

(45%) (55%)

(44%) (56%)

(46%) (54%)

(45%) (55%)

(43%) (57%)

(46%) (54%)

(45%) (55%)

(45%) (55%)

653.3 642.0 716.0 722.3 704.3 679.8

2,011.3 2,137.3

753.2

(44%) (56%)

+5.2% YOY

+6.3% YOY

P.36

Total Revenue +5.2% Medical Revenue +4.6% OPD +8.0% IPD +0.5%

601.9 622.5

108.9 121.0

3Q18 3Q19

Thai Inter

+3.4%

+11.1%

Revenue Breakdown : 3Q18 & 3Q19

Unit: THB mm Total Revenue

536.0 544.9

138.4 153.2

36.4 45.4

3Q18 3Q19

Self Pay Insurance Contract Comp.

+24.7%

+1.7%

+10.7% 5%

19% 75%

6% 21% 73%

388.1 419.1

322.7 324.4

5.2 9.7

3Q18 3Q19

OPD IPD Other rev.

45% 55%

By Payor Revenue

By Nationality Revenue

44% 56% 16%

84% 15% 85%

716.0 753.2

P.37

Total Revenue +6.3% Medical Revenue +6.1% OPD +7.3% IPD +4.6%

1,703.3 1,773.2

285.4 336.2

9M18 9M19

Thai Inter

+4.1%

+17.8%

Revenue Breakdown : 9M18 & 9M19

Unit: THB mm Total Revenue

1,520.2 1,580.4

377.3 423.6

91.2 105.5

9M18 9M19

Self Pay Insurance Contract Comp.

+15.7%

+4.0%

+12.3% 5%

19% 76%

5% 20% 75%

1,089.8 1,169.4

898.9 940.0

22.6 27.9

9M18 9M19

OPD IPD Other rev.

45% 55%

By Payor Revenue

By Nationality Revenue

45% 55% 16%

84% 14% 86%

2,011.3 2,137.3

P.38

102 103

112 115

105 106

117

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Key Operational Volume

Unit: ’000 visits

OPD Visits

OPD

+3.9% (YOY)

IPD Average Daily Census (ADC)

111 96

117 105 106

91 109

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

IPD

-6.8% (YOY)

P.39

Occupancy Rate : Normal Ward, ICU-CCU

74.3%

55.9%

70.0% 61.5% 61.4%

52.4%

64.6% 73.6% 68.3%

74.2% 74.3% 77.8% 72.7% 73.4%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Normal Ward ICU-CCU Ward Occupancy Rate ICU-CCU Occupancy Rate

125 142 142 142 142 142 142

24 24 24 24 24 24 24

P.40

101.6 98.2 145.9 25.8

143.4 83.9 150.6 345.7 377.9

15.5% 15.3% 20.4% 20.4%

12.3%

20.0% 17.2% 17.7%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 9M2018 9M2019EBITDA EBITDA Margin

52.0 50.4 87.3 86.1 35.7 88.8 189.9 210.6

8.0% 7.8% 12.2%

-4.5%

12.2%

5.2%

11.8% 9.4% 9.9%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 9M2018 9M2019Net Profit Net Profit Margin

197.9 186.9 227.1 225.1 224.8 181.5 237.6

30.8% 29.4% 32.0% 31.6% 32.3% 27.1% 32.0% 30.8% 30.5%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 9M2018 9M2019Gross Profit Gross Profit Margin

Profitability : 3Q19 & 9M19

Unit: THB mm

Gro

ss

Pro

fit

EB

ITD

A

Ne

t P

rofi

t

Unit: THB mm

Unit: THB mm

142.2

82.8

3.6%

11.5%

19.7%

405.5

16.4%

57.8 8.5%

111.5

19.0%

10.9%

197.0 29.4% 659.4

611.8

232.7

-32.7

643.9

31.3%

372.1 18.5%

211.1 10.5%

P.41

Balance Sheets

Solid Balance Sheets

1,669 1,881 2,095

3,873 3,981 380 413

762

551 689

2015 2016 2017 2018 Sep-19

Equity Liabilities

Unit: THB mm

2,049 2,294 2,857

4,424 4,670

None of Interest Bearing Debt Outstanding

0.23 0.22

0.36

0.14 0.17

2015 2016 2017 2018 Sep-19

D/E Ratio

D/E Ratio

P.42

Balance Sheets

P.43

“Thank You”