Pt Mitra Keluarga Karyasehat Tbk · IDX:MIKA
Pt Mitra Keluarga Karyasehat Tbk — IPO Roadshow (March 2015)
44 slides from Pt Mitra Keluarga Karyasehat Tbk's IPO roadshow presentation, March 2015
Slide 1: PT Mitra Keluarga Karyasehat Tbk Company Presentation
PT Mitra Keluarga Karyasehat Tbk Company Presentation March 2015
Slide 2: Disclaimer
Disclaimer The information contained in this document is strictly confidential and has been prepared by PT Mitra Keluarga Karyasehat Tbk ("Company") in connection with its proposed offering and sale of its shares (the "Offering"). This document may not be taken away, reproduced or redistributed, in
Slide 3: Offering Summary
Offering Summary Company / Issuer • PT Mitra Keluarga Karyasehat Tbk (“Mitra Keluarga” or the “Company”) Listing Venue • Indonesia Stock Exchange ("IDX") - Main Board • Up to 18% of the issued and paid-up share capital of 1,455,073,600 shares Offering Structure – Consists of 5% primary offering and
Slide 4: Board of Directors
Board of Directors Ir. Rustiyan Oen, MBA Dr. Francinita Nati Joyce V. Handajani, MBA President Director Chief Operating Officer Chief Financial Officer • President Director of Mitra • Joined Mitra Keluarga in • Joined Mitra Keluarga in Keluarga for 17 years 1993 and has been the January 2014 (previo
Slide 5: Agenda
Agenda 1 Introduction to Mitra Keluarga 2 Investment Highlights 3 Growth Strategies 4 Financial Highlights 5 Conclusion and Q&A 6 Appendix 5
Slide 6: Introduction to Mitra Keluarga
Section 1 Introduction to Mitra Keluarga
Slide 7: One of the Largest Private Hospital Groups in Indonesia with Strong Track Record
One of the Largest Private Hospital Groups in Indonesia with Strong Track Record Leading Indonesian Hospital Group Strong Track Record of Growth and Profitability • Largest private hospital by patient volume(1) (IDR Bn) 2013 2009 – 13 CAGR compared to private multi-specialty hospitals listed Revenue
Slide 8: Focused on Highly Attractive Population Centres in Greater Jakarta and Surabaya
Focused on Highly Attractive Population Centres in Greater Jakarta and Surabaya Located in Areas with Large, Attractive, Captive Population Catchment Areas and Highest Supply of Medical Graduates in Indonesia Tegal Java Greater Jakarta (1) Surabaya Population: 10 MM (4% of total population) (2) Popu
Slide 9: Strong Track Record of Over 25 Years
Strong Track Record of Over 25 Years • RSMK Existing Hospital Disposed Hospital Kenjeran Upcoming Hospital • RSMK 2015 Cikarang • RSMK Depok 2014 2011 • RSMK Kelapa Gading • RSMK • RSMK Surabaya 2009 2010 Kalideres(2) • RSMK Bekasi 2004 • RSMK 2008 Cibubur Barat 2001 • RSMK Tegal 2002 • RSMK Bekasi
Slide 10: Best-in-Class Business Model with Strong Fundamentals
Best-in-Class Business Model with Strong Fundamentals Business Model Fundamentals Benefits 1 “Mitra Keluarga” branded “Community Center Location” to maximize patient volumes and occupancy rates by capturing demand from the large populations from surrounding communities community hospitals providin
Slide 11: Investment Highlights
Section 2 Section 2 Investment Highlights Investment Highlights 11
Slide 12: The Essential Investment Opportunity in Indonesian Healthcare Services Sector
The Essential Investment Opportunity in Indonesian Healthcare Services Sector 1 Leading Hospital Operator with Proven Operational and Financial Track Record 2 Strong and Well Established in Attractive Greater Jakarta and Surabaya Areas 3 Best-in-Class Community Hospitals with Comprehensive General H
Slide 13: Leading Hospital Operator with Proven Operational Track Record
1 Leading Hospital Operator with Proven Operational Track Record … Largest Non-Government Multi-Specialty Hospital in Indonesia Hospital by Patient Volumes No. of Inpatient Days (2013) No. of Outpatient Visits (2013) 1,571,744 392,408 1,211,248 369,409 MK Group Siloam MK Group Siloam Inpatient Days
Slide 14: … and Superior Financial Performance
1 … and Superior Financial Performance Superior Performance and Returns EBITDAR (1) (2013) EBITDAR Margin (2013) IDR Bn % of Net Operating Revenue 598 34.3 384 20.8 MK Group Siloam MK Group Siloam Net Income (2013) ROIC(2) (2013) Net Income Margin (2013) IDR Bn % % of Net Operating Revenue 412 59.3
Slide 15: Profitable Operations with Minimal Concentration Risk
1 Profitable Operations with Minimal Concentration Risk Minimal Concentration Risk with Largest Hospital Contributing Only 18% of Revenue Total Revenue by Hospital (2013) IDR Bn % of 18.4% 14.1% 13.6% 12.7% 10.2% 9.8% 8.3% 6.5% 4.4% 2.1% Total Revenue 320 245 237 221 177 171 145 113 76 36 Kelapa Gad
Slide 16: Strong and Well-Established in Attractive Greater Jakarta and Surabaya Areas
2 Strong and Well-Established in Attractive Greater Jakarta and Surabaya Areas Attractive Economic and Demographic Fundamentals of Leadership in These Attractive Regions Greater Jakarta and Surabaya Areas… Accounts for 19% of Indonesia’s No. of Private Multi-Specialty Hospitals in … and 32% of Indon
Slide 17: Best-in-Class Community Hospitals with Comprehensive General Hospital Services
Best-in-Class Community Hospitals with Comprehensive General Hospital 3 Services and Targeted Specialist Services Best-in-Class Community Hospitals… … With Comprehensive Healthcare Services Laboratory • Strategically located in attractive population Cardiovascular (non-invasive) catchment areas
Slide 18: Successful Growth Track Record Through Expansion and New Hospitals
Successful Growth Track Record Through Expansion of Existing Hospitals and 4 Building New Hospitals Rapid Expansion in Last 10 Years ... Our Double-Pronged Strategy No. of Operating Beds • Demand-driven expansion strategy based on End of Period 1,647 careful assessment of needs to ascertain 1,484 ta
Slide 19: Proven Track Record of Superior Ramp-up in New Hospitals
4 Proven Track Record of Superior Ramp-up in New Hospitals Cikarang (Opened in 2010) Cibubur (Opened in 2011) Depok (Opened in 2008) No. of Inpatient Days No. of Inpatient Days Maximum Bed Capacity 22,315 21,008 178 12,903 91 7,999 (1) 2011 2013 2011 2013 2008 2013 Occupancy Rate (%) Occupancy Rate
Slide 20: Highly Recognized Brand and Patient Loyalty
5 Highly Recognized Brand and Patient Loyalty Highly Recognized Brand • We believe “Mitra Keluarga” brand is associated with high quality and Gold Award Gold Award cost efficient medical services using modern equipment Chain Hospital Most Recommended (Greater Jakarta) Hospital (Jakarta) • Over 25 ye
Slide 21: Proven Ability to Attract and Retain High Quality Healthcare Professionals
6 Proven Ability to Attract and Retain High Quality Healthcare Professionals Effective Recruitment Efforts Long-standing Relationships with Our Doctors • Working environment that is conducive to learning given • Continuous investment in their professional development through continuous training, men
Slide 22: Well Qualified and Experienced Management Team
7 Well Qualified and Experienced Management Team Board of Directors Exceptional Management • Relevant experience, depth and diversity • 11 out of 13 are qualified doctors • 17 years at Mitra Keluarga • Hospital director for RSMK • 1 year at Mitra Keluarga (1) • 21 years experience in Kelapa Gading •
Slide 23: Growth Strategies
Section 3 Growth Strategies Section 3 Growth Strategies 23
Slide 24: Growth Strategies
Growth Strategies 1 Develop Greenfield Hospitals in Focus Geographical Areas 2 Increase Patient Volumes Through Capacity Expansion and Recruitment of Medical Professionals 3 Increase Revenue Intensity by Offering More Sophisticated and Complex Services 4 Continue to Improve Operating Efficiency 24
Slide 25: Develop Greenfield Hospitals in Focus Geographical Areas
Develop Greenfield Hospitals in Focus Geographical Areas with Favourable 1 Healthcare Industry Dynamics Strong Pipeline of Hospitals in Greater Jakarta Hospitals in Hospital Site Identified Land Acquired Construction Permits Secured Construction Expected Opening RSMK Kalideres 2Q2015 Site 1
Slide 26: Increase Patient Volumes Through Capacity Expansion and Recruitment
Increase Patient Volumes Through Capacity Expansion and Recruitment of 2 Medical Professionals Current Plans for Expansion of Current Portfolio Generates Solid and Consistent Growth (1) Current Beds 1,647 Bekasi Timur 4 Kelapa Gading -2 Surabaya 2 2014 Beds 1,651 Bekasi Timur 15 Kelapa Gading 4 Sura
Slide 27: Increase Revenue Intensity via More Sophisticated and Complex Medical Offerings
3 Increase Revenue Intensity via More Sophisticated and Complex Medical Offerings Increase Our Capabilities to Manage Complexity • Increased acuity • Operating theatres • ICU beds • Co-morbidities • Intensivists • Increased chronic diseases • Critical care nurses • Creating more specialist centres T
Slide 28: Continue to Improve Operating Efficiency
4 Continue to Improve Operating Efficiency Integrated IT Platform Standardized Procurement • Continue to develop an integrated end-to-end • In the process of standardizing procurement of hospital information management system drugs, medical supplies and equipment across all hospitals • Integrate var
Slide 29: Financial Highlights
Section 4 Section 4 Financial Highlights Financial Highlights 29
Slide 30: Value Drivers
Value Drivers Revenue Cost of Sales Operating Costs Profitability Investment Cash Flow Drug and medical Salary and employee Inpatient supplies benefits KPIs Existing sites Capex Security and cleaning Salary and employee services Outpatient benefits Procurement New services Working capital Post-emplo
Slide 31: Key Performance Indicators
Key Performance Indicators 2011A 2012A 2013A 2011-13 CAGR 9M14 Inpatient 818 992 1,173 19.7% 958 Revenues by Patient Type Outpatient 385 483 569 21.6% 509 (IDR Bn) Total 1,203 1,475 1,742 20.3% 1,467 No. of Inpatient Days (‘000) 317 351 392 11.2% 293 No. of Outpatient Visits (‘000) 1,314 1,476 1,572
Slide 32: Revenue by Inpatient and Outpatient Services
Revenue by Inpatient and Outpatient Services Revenue Breakdown by Services Revenue (2013) Others Operating 12% Outpatient Rooms 33% 7% Drugs and Inpatient Medical Accommodation Supplies 11% 46% Medical Inpatient Support 67% Services 24% Total : IDR 1,742Bn Total : IDR 1,742Bn Inpatient Services Typi
Slide 33: ROIC: Highly Attractive Returns and Upside in Real Estate Appreciation
ROIC: Highly Attractive Returns and Upside in Real Estate Appreciation Return on Invested Capital (1) Value of Land Porfolio (%) (IDR Bn) 1,815 66.1% 59.3% 55.6% 47.7% 1,661 154 (2) (3) 2011 2012 2013 9M14 Book Value Mark-to-Market (Sep-14) Value (1) ROIC calculated as (Income from Operations – Tax)
Slide 34: Cash Flow: Capital Expenditure
Cash Flow: Capital Expenditure Capital Expenditure (IDR Bn) 357 284 214 2 15 166 1 68 12 5 13 9 50 30 80 1 74 10 2 8 9 6 27 86 90 47 26 9 10 2011 2012 2013 9M2014 2015F 2016F Construction in progress Medical Equipment Office equipment and furniture Landrights Building Other Forecast 34
Slide 35: Cash Flow: Efficient Working Capital Management
Cash Flow: Efficient Working Capital Management Trade Receivables Days (1) Inventory Days (2) (Days) (Days) 28 29 27 26 24 23 22 19 2011 2012 2013 9M14 2011 2012 2013 9M14 Trade Payables Days (3) Cash Cycle Days (4) (Days) (Days) 41 39 40 34 15 14 7 7 2011 2012 2013 9M14 2011 2012 2013 9M14 (1) Calc
Slide 36: Conclusion and Q&A
Section 5 Conclusion and Section 5 Q&A Offering Structure and Indicative Timetable 36
Slide 37: The Essential Investment Opportunity in Indonesian Healthcare Services Sector
The Essential Investment Opportunity in Indonesian Healthcare Services Sector 1 Leading Hospital Operator with Proven Operational and Financial Track Record 2 Strong and Well Established in Attractive Greater Jakarta and Surabaya Areas 3 Best-in-Class Community Hospitals with Comprehensive General H
Slide 38: Appendix
Section 6 Section 6 Appendix Conclusion and Q&A 38
Slide 39: Hospital Assets: Network of Community Hospitals
Hospital Assets: Network of 11 Community Hospitals Hospital Start of Operation Bed Capacity (1) Operational Beds (1) Owned Bekasi Barat 1993 272 272 Bekasi Timur 2004 290 243 Greater Jakarta Cikarang 2010 145 90 Kelapa Gading 2002 167 163 Kemayoran 1998 166 166 Rent(3) Depok 2008 178 172 C
Slide 40: Comprehensive Range of Service Offerings Across All Hospitals
Comprehensive Range of Service Offerings Across All Hospitals • Laboratory • Pharmacy • Radiology General Services • Emergency Room • Intensive Care Unit (ICU) Rooms • General Surgery • Orthopedics • Neurosurgery • Urology Focus Specialty Areas • Cardiovascular • Obstetrics & • Pediatrics • Internal
Slide 41: Service Offerings: Integrated Patient-Focused Services
Service Offerings: Integrated Patient-Focused Services Integrated Service Offerings Provide Maximize Share of Wallet from Seamless Patient Experience Patients General Practitioner Specialist Services 1 Broaden Scope of Services Services • Access to entire network of specialist services via any entry
Slide 42: Sales and Marketing: Tailored Strategies for Maximum Effectiveness
Sales and Marketing: Tailored Strategies for Maximum Effectiveness OPE Patients Covered Patients • Referrals • Promotion to the insurer’s prospective and existing patients: ─ From our specialists within the hospital ─ Free health screenings for prospective network and external doctors and clinics du
Slide 43: Indonesia's National Health Insurance (JKN)
Indonesia’s National Health Insurance (JKN) Universal Health Coverage to be Achieved by 2019 Impact on Healthcare Services Industry • Commenced roll-out in January 2014 to provide • JKN is expected to increase both public and private universal health coverage by 2019 in several healthcare expenditur
Slide 44: Shareholding Structure
Shareholding Structure Pre-IPO Post-IPO (Expected) Lion Investment PT Griyainsani Lion Investment PT Griyainsani Public Partners B.V. Cakrasadaya Partners B.V. Cakrasadaya 66.0% 34.0% 49.7% 32.3% 18.0% PT Mitra Keluarga PT Mitra Keluarga Karyasehat Tbk Karyasehat Tbk 99.9% 99.9% PT Proteindo PT Prot
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