Pt Mitra Keluarga Karyasehat Tbk · IDX:MIKA
Pt Mitra Keluarga Karyasehat Tbk — Investor Presentation (October 2015)
50 slides from Pt Mitra Keluarga Karyasehat Tbk's investor presentation, October 2015
Slide 1: PT Mitra Keluarga Karyasehat Tbk Company Presentation
PT Mitra Keluarga Karyasehat Tbk Company Presentation October 2015
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation has been prepared for informational purposes only by PT Mitra Keluarga Karyasehat Tbk. (“Mitra Keluarga” or the “Company”) and solely for use in connection with the release of 30 September 2015 unaudited results of the Company. The information contained in
Slide 3: Agenda
Agenda 1 Introduction to Mitra Keluarga 2 Investment Highlights 3 Growth Strategies 4 Financial Highlights 5 Conclusion 6 Appendix 3
Slide 4: Introduction to Mitra Keluarga
Section 1 Introduction to Mitra Keluarga
Slide 5: 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) 2014 2009 – 14 CAGR compared to private multi-specialty hospitals Revenue 1,946
Slide 6: 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 7: Strong Track Record of Over 25 Years
Strong Track Record of Over 25 Years • Mitra Existing Hospital Disposed Hospital Keluarga Kenjeran Upcoming Hospital • Mitra 2015 Keluarga Cikarang • Mitra Keluarga Depok 2014 2011 • Mitra Keluarga Kelapa Gading 2009 • Mitra Keluarga • Mitra Keluarga 2010 Kalideres Surabaya commenced • Mitra Keluarg
Slide 8: Best-in-Class Business Model with Strong Fundamentals
Best-in-Class Business Model with Strong Fundamentals Business Model Fundamentals Benefits 1 “Community Center Location” to maximize patient volumes and occupancy rates by capturing demand “Mitra Keluarga” branded from the large populations from surrounding communities community hospitals providin
Slide 9: Investment Highlights
Section 2 Section 2 Investment Highlights Investment Highlights
Slide 10: 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 11: Leading Hospital Operator with Proven Operational Track Record
1 Leading Hospital Operator with Proven Operational Track Record … Strong Patient Volume Growth and Profitability Inpatient Days per Doctor 2014 Outpatient Visits per Doctor 2014 1638 450 386 1500 375 307 1144 270 262 1200 1063 300 225 900 686 150 600 75 300 0 0 MIKA Hospital A Hospital B MIKA 9M15
Slide 12: Profitable Operations with Minimal Concentration Risk
1 Profitable Operations with Minimal Concentration Risk Minimal Concentration Risk with Largest Hospital Contributing Only 17% of Revenue Total Revenue by Hospital (2014) IDR Bn % of 17.2% 14.6% 12.3% 10.8% 8.6% 7.8% 7.3% 5.2% 2.1% 13.6% Total Revenue 337 287 266 241 211 170 154 144 102 42 Kelapa Ga
Slide 13: 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 14: Best-in-Class Community Hospitals
Best-in-Class Community Hospitals with Comprehensive General Hospital 3 Services and Targeted Specialist Services Best-in-Class Community Hospitals… • Strategically located in attractive population catchment areas with captive patient base – Many patients reside within close proximity to our hospita
Slide 15: Comprehensive Healthcare Services
Best-in-Class Community Hospitals with Comprehensive General Hospital 3 Services and Targeted Specialist Services … With Comprehensive Healthcare Services General Services in All Hospital Laboratory Pharmacy Emergency Rooms ICU Rooms Radiology MRI CT Scan USG 4D / 3D 15
Slide 16: Specialty Services in All Hospitals
Best-in-Class Community Hospitals with Comprehensive General Hospital 3 Services and Targeted Specialist Services Specialty Services in All Hospitals General Surgery Cardiovascular (non-invasive) Pediatrics Neuro Surgery Obstetrics & Gynecology Internal Medicine Urology Ear, Nose & Thro
Slide 17: 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 11 Years … Our Double-Pronged Strategy No. of Operational Beds • Demand-driven expansion strategy based on End of Period 1,647 1,725 careful assessment of needs to ascertain ta
Slide 18: 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 No. of Inpatient Days 25,352 Days 23,576 41,155 12,903 7,999 5,825 (1) 2011 2014 2011 2014 2008 2014 Occupancy Rate (%) Occupanc
Slide 19: 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 Gold Award Frost & Sullivan Gold Award quality and cost efficient medical services using modern Excellence Award Local General Hospital Chain Hospital Excellence in Growt
Slide 20: 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 21: Well Qualified and Experienced Management Team
7 Well Qualified and Experienced Management Team Board of Directors Exceptional Management • Relevant experience, depth and diversity • 12 out of 14 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 22: Growth Strategies
Section 3 Growth Strategies Section 3 Growth Strategies 22
Slide 23: 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 23
Slide 24: 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 July 2015 Mitra Keluarga Kalideres
Slide 25: 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 2014 Beds 1,647 Bekasi Timur 19 Cikarang 20 Depok 15 Cibubur 15 Waru 17 2015 Beds 1,733 +384 beds Bekasi Timur 15 acro
Slide 26: Increase Revenue Intensity via More Sophisticated 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 27: 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 28: Financial Highlights
Section 4 Section 4 Financial Highlights Financial Highlights 28
Slide 29: 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 30: Key Performance Indicators
Key Performance Indicators 2011-14 2011A 2012A 2013A 2014A 9M15 CAGR Inpatient 818 992 1,173 1,281 16.1% 1,017 Revenues by Patient Type Outpatient 385 483 569 665 19.9% 585 (IDR Bn) Total 1,203 1,475 1,742 1,946 17.4% 1,602 No. of Inpatient Days (‘000) 317 351 392 382 6.4% 278 No. of Outpatient Visi
Slide 31: Revenue by Inpatient and Outpatient Services
Revenue by Inpatient and Outpatient Services Revenue Breakdown by Services Revenue (9M15) Others 13% Operating Outpatient Rooms 37% 7% Drugs and Inpatient Medical Accommodation Supplies 11% 46% Inpatient Medical 63% Support Services 23% Total : IDR 1,602 Bn Total : IDR 1,602 Bn Inpatient Services Ty
Slide 32: 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 62.1% 59.3% 60.2% 55.6% 47.7% 1,661 154 (2) (3) 2011 2012 2013 2014 9M15 Book Value Mark-to-Market (Sep-14) Value (1) ROIC calculated as (Income from Operat
Slide 33: Cash Flow: Capital Expenditure
Cash Flow: Capital Expenditure Capital Expenditure (IDR Bn) 400 350 300 256 250 15 200 69 166 163 357 5 11 7 150 12 13 9 284 39 80 50 73 100 74 10 6 8 9 120 50 27 86 47 72 26 0 9 10 2011 2012 2013 2014 9M15 2015F 2016F Construction in progress Medical Equipment Office equipment and furniture Landrig
Slide 34: Cash Flow: Efficient Working Capital Management
Cash Flow: Efficient Working Capital Management Trade Receivables Days (1) Inventory Days (2) (Days) (Days) 29 27 27 26 24 23 23 23 20 17 2011 2012 2013 2014 9M15 2011 2012 2013 2014 9M15 Trade Payables Days (3) Cash Cycle Days (4) (Days) (Days) 41 39 40 36 31 15 14 9 7 7 2011 2012 2013 2014 9M15 20
Slide 35: Conclusion
Section 5 Conclusion Section 5 Offering Structure and Indicative Timetable 35
Slide 36: 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 37: Appendix
Section 6 Section 6 Appendix Conclusion and Q&A 37
Slide 38: Unaudited Financial Statement YTD September 2015 - Assets
Unaudited Financial Statement YTD September 2015 30 September 2015 31 December 2014 % Consolidated Balance Sheets (Unaudited) (Audited) Change ASSETS CURRENT ASSETS Cash and cash equivalents 2,253,174,885,779 970,150,340,494 132.3% Trade receivables Third parties - net of allowance for impairment lo
Slide 39: Unaudited Financial Statement YTD September 2015 - Liabilities
Unaudited Financial Statement YTD September 2015 30 September 2015 31 December 2014 % Consolidated Balance Sheets (Unaudited) (Audited) Change LIABILITIES CURRENT LIABILITIES Trade payables Third parties 47,373,014,307 47,142,971,007 0.5% Related parties 14,568,406,036 17,795,569,303 -18.1% Other pa
Slide 40: Unaudited Financial Statement YTD September 2015 - Equity
Unaudited Financial Statement YTD September 2015 30 September 2015 31 December 2014 % Consolidated Balance Sheets (Unaudited) (Audited) Change EQUITY Equity attributable to equity holders of the parent entity Capital stock - par value of Rp 10 Authorized - 50,000,000,000 shares Issued and fully paid
Slide 41: Unaudited Financial Statement YTD September 2015 - Income
Unaudited Financial Statement YTD September 2015 30 September 2015 30 September 2014 % Consolidated Statement of Income (Unaudited) (Unaudited) Change REVENUES 1,601,983,872,566 1,467,307,143,106 9.2% COST OF REVENUES (873,045,219,088) (828,008,225,705) 5.4% % to Revenues 54.5% 56.4% GROSS PROFIT 72
Slide 42: Unaudited Financial Statement YTD September 2015 - Income
Unaudited Financial Statement YTD September 2015 30 September 2015 30 September 2014 % Consolidated Statement of Income (Unaudited) (Unaudited) Change INCOME TAX EXPENSE – NET (117,429,699,299) (99,712,290,851) 17.8% % to Revenues 7.3% 6.8% INCOME FOR THE PERIOD 455,789,679,124 405,608,842,885 12.4%
Slide 43: Unaudited Financial Statement YTD September 2015 - Cash Flows
Unaudited Financial Statement YTD September 2015 30 September 2015 30 September 2014 % Consolidated Statement of Cash Flows (Unaudited) (Unaudited) Change CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers 1,599,281,458,657 1,451,439,080,228 10.2% Cash paid to suppliers (641,631,259,8
Slide 44: Unaudited Financial Statement YTD September 2015 - Cash Flows
Unaudited Financial Statement YTD September 2015 30 September 2015 30 September 2014 Consolidated Statement of Cash Flows % Change (Unaudited) (Unaudited) CASH FLOWS FROM FINANCING ACTIVITIES Cash receipts from of Initial Public Offering 1,208,446,645,843 - N/A Payments of cash dividends (291,014,72
Slide 45: Hospital Assets: Network of Community Hospitals
Hospital Assets: Network of 12 Community Hospitals Hospital Start of Operation Bed Capacity Operational Beds (1) Owned Bekasi Barat 1993 272 272 Bekasi Timur 2004 290 243 Cikarang 2010 162 110 Greater Jakarta Kelapa Gading 2002 167 163 Kemayoran 1998 166 166 Rent(3) Depok 2008 204 174 Cibu
Slide 46: 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 47: 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 Specialist Services 1 Broaden Scope of Services Practitioner Services • Access to entire network of specialist services via any entry
Slide 48: 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 49: 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 universal health coverage by 2019 in several private healthcare expenditur
Slide 50: Thank You
Thank You PT Mitra Keluarga Karyasehat Tbk Jl. Bukit Gading Raya Kav. 2 Kelapa Gading Permai Jakarta 14240, Indonesia Phone : (62 21) 45852700 Fax : (62 21) 45852727 E-mail : corporate.secretary@mitrakeluarga.com investor.relations@mitrakeluarga.com Website : www.mitrakeluarga.com 50
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