Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — RHT Health Trust — FY2018 Earnings Presentation
39 slides from Singapore Exchange's earnings presentation, May 2018
Slide 1: FY18 Financial Results
FY18 Financial Results RHT STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation is focused on comparing actual results from the period from 1 April 2017 to 31 March 2018 (“4QFY18“ and “FY18”). Other than the comparative figures presented, no other comparative figures will be presented as the acquisition of the Portfolio of RHT as well as listing on
Slide 3: Portfolio
Portfolio
Slide 4: RHT – Quality Assets Spread Across India
RHT– 18 Quality Assets Spread Across India National Capital Region Mohali 348 Operational Beds Delhi (Shalimar Bagh) 355 Installed Bed Capacity RHT: *480 Potential Additional Capacity 229 Operational Beds Investment mandate to invest in medical 350 Installed Bed Capacity and healthcare assets and
Slide 5: Portfolio Providing Upside Exposure
Portfolio Providing Upside Exposure Fee structure offers RHT an ideal combination of cash-flows with opportunity to participate in operational growth of its healthcare assets Portfolio Characteristics(4) Base Fee Component(4) Income-generating Assets Account Substantial Portion of Portfolio Comprise
Slide 6: Operational Review
Operational Review
Slide 7: Operational Review
Operational Review (1) Revenue in RHT Clinical Establishment (INR m)(1) Growth in Operational Beds Since Listing Number of Operational Beds FY16 FY17 16% 7% 4,790 4.3% 4,260 14% 4,120 3,970 5% 4% 2% 3,190 16% 2,810 2,740 2,870 2,730 2,830 32% 2,607 2,651 2,651 2,764 1,706 2,252 IPO^ FY-14 FY-15 FY-1
Slide 8: Operational Review
Operational Review RHT’s assets are spread across India with increasing income generated Portfolio Characteristics Occupancy in RHT Clinical Establishments^ FY17 FY18 ARPOB (INR m) Occupancy rate 1Q FY15 12.31 74% 80% 75% 80% 84% 82% 2Q FY15 12.66 74% 67% 66% 68% 73% 75% 3Q FY15 13.23 72% 4Q FY15 12
Slide 9: Growth Strategy
Growth Strategy
Slide 10: Growth Strategy
Growth Strategy Potential Additional Bed Current Operational Bed Current Installed Bed Capacity Hospitals Capacity Capacity (ex. Greenfield Clinical Establishments) Amritsar 158 166 102 Anandpur, Kolkata 200 373 BG Road, Bengaluru 258 258 200 Gurgaon 290 450 550 Faridabad 210 210 Jaipur 271 320 Kaly
Slide 11: Growth Strategy
Growth Strategy Ludhiana Greenfield Clinical Establishment BG Road Brownfield Clinical Establishment Oncology – Handed over to the FHL Projects Team on 24 April Estimated Time of Completion On Hold* 2018 Operating Theatre – On Hold* No. of Beds Planned 70 200 Specialties Mother & Child Programmes On
Slide 12: Growth Strategy
Growth Strategy Jaipur Clinical Establishment Mulund Clinical Establishment Nagarbhavi Clinical Establishment Estimated Time of Completion Completed and operations commenced Completed and operations commenced On hold* No. of Additional Beds Planned 59 39 45 Mother & Child and Orthopedics Addition of
Slide 13: Financial Highlights
Financial Highlights
Slide 14: Financial Highlights
Financial Highlights Yield, gearing & P/B (1) Net Asset Value (S$ m) 769 30.1 740 715 705 696 685 663 5.4 25.4 0.96 Yield Gearing ratio P/B IPO FY-13 FY-14 FY-15 FY-16 FY-17 FY-18 * Post FHTL disposal and completion of asset enhancement projects, and without inclusion of NCDs. Yield over the financi
Slide 15: Financial Highlights
Financial Highlights Distribution Per Unit: 1.14 cents per unit(1) Ex-date: 4 June 2018, 9 a.m. Books Closure Date: 6 June 2018, 5 p.m. Payment Date: 14 June 2018 Period DPU DPU (Singapore cents) Y-o-Y comparison 1QFY18 1.22 cents per unit(1) 9.00 2QFY18 1.14 cents per unit(1) 8.00 4.90 Singapore ce
Slide 16: 4Q FY17/18 results
4Q FY17/18 results S$’000 4Q FY18 4Q FY17 Variance (%) Average rate(3) 49.17 47.33 3.9 Effective forward rate 51.75(1) 52.03(2) (0.5) Total Revenue(4) 23,128 22,567 2.5 Net Service Fee and 13,678 13,059 4.7 Hospital Income Cash flow from FHTL (5) 5,381 4,207 27.9 RHT Income available for 3,710 5,317
Slide 17: Financial Highlights
Financial Highlights Revenue (S$’000) (1)(2)(3)(4) Revenue (INR ‘000) (1)(2)(3)(4) 138.5 130.9 129.0 6,556.8 2.7 121.0 6,244.1 3.0 2.8 6,214.7 9.7 4.4 127.9 5,772.6 8.0 9.6 140.2 136.8 93.8 95.0 457.0 30.3 10.9 4,589.9 384.4 463.8 208.1 27.9 2.0 3.9 31.6 4,106.9 1,436.2 519.5 190.5 1,321.4 1,530.2 5
Slide 18: Capital Structure
Capital Structure
Slide 19: Capital Structure
Capital Structure Indicator As at 31 March 2018 Interest service coverage 4.45% (Adjusted EBITDA/Interest expense) Percentage of fixed interest rate debt 50.9% Percentage of unsecured borrowings 51.7% Effective weighted average cost of debt 6.4% Gearing ratio 25.4% Weighted Average Debt Maturity wit
Slide 20: Hedging Policy
Hedging Policy Commencing FY2018, RHT hedged 50% of its Indian denominated cashflows receivable every 6 months from India. The Trustee-Manager has not and will not be entering into any hedges for the expected INR cashflow for the 6 months ending December 2018 and for future periods since it is consi
Slide 21: For further information please contact
For further information please contact: Tan Suan Hui Head of Compliance and Investor Relations RHT Health Trust Manager Pte. Ltd 302 Orchard Road #09-03/04 Tong Building Singapore 238862 Email: suanhui.tan@rhealthtrust.com www.rhealthtrust.com 21
Slide 22: Appendix
Appendix
Slide 23: Financial Highlights
Financial Highlights Adjusted Net Service Fee and Margin (1)(2)(3)(4)(6) (Operations) Total Assets (5) S$m 63.5 62.4 51.7 52.4 50.9 53.7 S$m 962.9 958.4 761.1 797.2 734.4 754.6 FHTL FHTL S$m - - 39.8 41.2 32.3 22.2 S$m - - 406.7 410.9 352.3 363.6 With 100% (INRm) interest in (INRm) 42,127 45,743 51,
Slide 24: Review of 4Q FY18 against 4Q FY17 Performance
Review of 4Q FY18 against 4Q FY17 Performance Portfolio 4Q FY17 against 4Q FY18 (q-o-q) 4Q FY17 4Q FY18 Variance 4Q FY17 4Q FY18 Variance S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 22,567 23,128 2.5 1,068,248 1,138,044 6.5 Net Service Fee and Hospital Income^ 13,059 13,678 4.7 618,598 671,969
Slide 25: Review of 4Q FY18 against 3Q FY18 Performance
Review of 4Q FY18 against 3Q FY18 Performance Portfolio 3Q FY18 against 4Q FY18 (q-o-q) 3Q FY18 4Q FY18 Variance 3Q FY18 4Q FY18 Variance S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 23,238 23,128 (0.5) 1,108,717 1,138,044 2.6 Net Service Fee and Hospital Income^ 13,043 13,678 4.9 622,245 671,96
Slide 26: Review of YTD FY18 Performance
Review of YTD FY18 Performance Portfolio YTD FY17 against YTD FY18 (y-o-y) YTD FY17 YTD FY18 Variance YTD FY17 YTD FY18 Variance S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 89,919 94,422 5.0 4,351,591 4,505,932 3.5 Net Service Fee and Hospital Income 50,924 53,707 5.5 2,464,500 2,562,890 4.0 FH
Slide 27: Financial Results for 4Q FY18
Financial Results for 4Q FY18 For the quarter ended 31 March 2018 4Q FY18 4Q FY17 Var S$'000 S$'000 (%) Revenue: Service fee 18,978 19,986 (5) Hospital income 2,873 2,161 33 Other income 1,655 947 75 Total revenue 23,506 23,094 2 Total service fee and hospital expenses (12,256) (12,477) (2) Finance
Slide 28: Financial Results for 4Q FY18
Financial Results for 4Q FY18 For the quarter ended 31 March 2018 Reconciliation to Unitholders Distributable Income 4Q FY18 4Q FY17 S$'000 S$'000 Profit for the period attributable to Unitholders of the Trust 4,216 9,942 Distribution adjustments: Impact of non-cash straight-lining (378) (527) Techn
Slide 29: Financial Results and Cash Flow of FHTL for 4Q FY18
Financial Results and Cash Flow of FHTL for 4Q FY18 For the quarter ended 31 March 2018 4Q FY18 - Associate 4Q FY17 - Associate S$'000 S$'000 Revenue: Total revenue 13,794 13,757 Total expenses (3,826) (6,310) Profit before tax 9,968 7,447 Income tax expense (3,566) (1,884) Profit for the year 6,402
Slide 30: Financial Results for YTD FY18
Financial Results for YTD FY18 For the period ended 31 March 2018 FY18 YTD FY17 YTD Var S$'000 S$'000 (%) Revenue: Service fee 80,758 79,610 1 Hospital income 10,887 9,583 14 Other income 4,361 2,827 54 Total revenue 96,006 92,020 4 Service fee and hospital expenses: Total service fee and hospital e
Slide 31: Financial Results for FY18 YTD
Financial Results for FY18 YTD For the period ended 31 March 2018 FY18 YTD FY17 YTD S$'000 S$'000 Profit for the period attributable to Unitholders of the Trust 15,536 134,951 Distribution adjustments: Impact of non-cash straight-lining (1,584) (2,101) Technology renewal fee (654) (645) Depreciation
Slide 32: Financial Results and Cash Flow of FHTL for FY18 YTD
Financial Results and Cash Flow of FHTL for FY18 YTD For the period ended 31 March 2018 FY17 YTD Associate FY17 YTD FY18 YTD (13 October 2016 to (up till 12 October 31 March 2017) 2016) S$'000 S$'000 S$'000 Revenue: Total revenue 57,692 25,808 28,144 Total expenses (26,885) (12,132) (5,925) Profit b
Slide 33: Balance Sheet
Balance Sheet (S$ ‘000) 31 March 18 31 March 17 Intangibles 86,781 94,640 PPE 539,011 562,074 Other long term assets 56,921 78,103 Investment in associate 363,557 352,717 Long term liabilities (254,322) (286,191) Net current liabilities (129,411) (104,969) Total net assets attributable to Unitholder
Slide 34: Trustee-Manager Fee Structure
Trustee-Manager Fee Structure Performance based management fees designed to align Management’s interests with Unitholders Base fee Performance fee Acquisition / divestment fee • 0.5% - 1.0% of acquisition price • 0.4% p.a. of the value of the • 0.5% of the sale price (Divestment Trust Property • 4.5
Slide 35: Unit Price Performance Against Peers
Unit Price Performance Against Peers For the quarter 1 January 2018 to 31 March 2018 RHT Health Trust First Real Estate Investment Trust Parkway Life REIT Ascendas India Trust 105% 100% 95% 90% 85% 80% 02 Jan 18 11 Jan 18 22 Jan 18 31 Jan 18 09 Feb 18 21 Feb 18 02 Mar 18 13 Mar 18 22 Mar 18 Price Vo
Slide 36: Key Highlights of RHT's Clinical Establishments
Key Highlights of RHT’s Clinical Establishments Jaipur Clinical Establishment Completed its 50th successful kidney transplant. Achieved zero 30 days Mortality, zero Graft Nephrectomy, zero Re-Exploration and zero Surgical Wound Infection. Achieved a 100% take home kidney rate. Malar Clinical E
Slide 37: Awards & Accolades
Awards & Accolades RHT featured as one of “Asia’s Top 50 Healthcare Providers” by Frost and Sullivan Jaipur Clinical Establishment - Won top honours at the Quality Council of India-D.L. Shah Awards for the fifth time consecutively in 2017. - Won the Quality Council of India (“QCI”) D.L. Shah Award f
Slide 38: Awards & Accolades
Awards & Accolades Mulund Clinical Establishment - Awarded the “Best Hospital Unit in Cardiac Care” and the “Best Medical Tourism Facility” at the CIMS Healthcare Excellence Awards 2016. - Project ‘One Fortis: Training in Action’ won at the Asian Hospital Management Awards 2017 - Awarded top honors
Slide 39: Awards & Accolades
Awards & Accolades Faridabad Clinical Establishment - Recognized as the “Best Heart Hospital” at the double helical State Health Awards 2017. Noida Clinical Establishment - Won ‘Comprehensive Neurosciences Service Provider of the Year’ award at Frost and Sullivan’s 7th Annual India Healthcare Excell