Bumrungrad Hospital Public Co., Ltd. · SET:BH
Bumrungrad Hospital Public — Debt Investor Presentation (November 2011)
31 slides from Bumrungrad Hospital Public's debt investor presentation, Nov 11, 2011
Slide 1: The Presentation for Debenture Issuance
Bumrungrad Hospital Public Company Limited The Presentation for Debenture Issuance 11 November 2011 Financial Advisor Joint Lead Underwriters
Slide 2: Disclaimer
Disclaimer • The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for any securities of Bumrungrad Hospital Public Company Limited (the "Company“ o
Slide 3: Table of Contents
Table of Contents 1. Company Information / Q3 Update Financials 2. Key Investment Highlights / Debenture Issue / Potential Key Covenants 3. Key Timeline 2
Slide 4: Overview: Bumrungrad International Hospital, Bangkok
Agenda Overview Bumrungrad International Hospital, Bangkok 3
Slide 5: Fact Sheet
Fact Sheet With a 30-year track record, BH is now the leading healthcare service provider in South-East Asian region • Established in 1980; listed on SET in 1989 • Major operations divided into Bangkok facility and international business Bangkok Facility Facilities One of the largest and most so
Slide 6: Group Structure
Group Structure Core business of BH is the renowned Bumrungrad International Hospital, Bangkok Bumrungrad Hospital Plc. (“BH”) Operates Bumrungrad International Hospital, Bangkok 100.0% 31.5% 24.99% 100.0% Bangkok Chain Hospital Asia Global Research Vitallife Corporation Ltd. Bumrungrad PCL doing bu
Slide 7: Management Team
Management Team BH’s management team comprises individuals with extensive experience in healthcare management K. Linda Lisahapanya Managing Director Dr. Sinn Anuras Group Medical Director Mr. Dennis Brown Corporate CEO Mr. Mack Banner Mr. Dennis Brown Dr. Suthipong Treeratana Mr. Anthony Tan CEO CEO
Slide 8: Overview: Bumrungrad International Hospital, Bangkok
Agenda Overview Bumrungrad International Hospital, Bangkok 7
Slide 9: BH's Core Attributes
BH’s Core Attributes Bangkok Flagship Facility Quality Operational Competitiveness • Over past two years, completed • 1st hospital in Asia to receive US JCI • Efficient workflow with renovation of inpatient facilities Accreditation (since 2002) comprehensive hospital management and increased capacit
Slide 10: Certifications and Awards
Certifications and Awards 2010: Thailand Tourism Award: “Award of Outstanding Performance in Medically-Oriented Establishment” by The Tourism Authority of Thailand Best Practice Workplace Award on Labor Relations and Labor Welfare Award 2010 by the Ministry of Labor Thailand’s Top 10 Most Inno
Slide 11: World Class Inpatient Facilities
World Class Inpatient Facilities Renovation of all rooms completed in May 2010 Inpatient experience offers hotel-like ambience and room design Priority on patient safety Less “clinical” feeling Warm and restful environment 10
Slide 12: Expanded Outpatient Facilities
Expanded Outpatient Facilities New OPD Tower with similar high quality ambience opened in June 2008 Clinic area design enhances privacy, in a pleasant and calming environment, with efficient workflows Sky Lobby Ground Floor Lobby New Clinics Welcome Center 11
Slide 13: Strategy
Strategy • Focus on physician • Domestic marketing • International marketing • Selectively pursuing recruitment and efforts include through multiple overseas expansion – targeted specialties advertisements, channels Bumrungrad fairs, and packages • Proven growth with International Limited increasing
Slide 14: Operating Performance 2006-2010
Operating Performance 2006-2010 Total Revenue EBITDA 12,000 6% CAGR 3,000 10,000 9,388 10,069 6% CAGR 8,882 9,338 2,452 Revenues (THB mn) 829 2,500 7,896 2,155 2,259 8,000 EBITDA (THB mn) 8,559 2,070 2,000 1,946 6,000 1,500 4,000 1,000 2,000 500 0 2006 2007 2008 2009 2010 0 BH reported a one-time ga
Slide 15: Margins & Trend
Margins & Trend EBITDA Margin Trend Net Profit Margin Trend 30% 30% 24.7% 24.2% 24.3% 24.2% 24.4% 20% 20% 17.1% 13.9% 13.3% 13.3% 12.5% 10% 10% 0% 0% 2006 2007* 2008 2009 2010 2006 2007 2008 2009 2010 *Net margin in 2007 includes the benefit of one-time non-operating items Margins have been strong a
Slide 16: 9M11 Update
9M11 Update Total Revenue EBITDA THB EBITDA THB million 16% million 9,000 EBITDA Margin 8,730 4,000 40% 8,500 3,000 26.1% 30% 24.2% 25.2 2,275 8,000 % 2,000 1,818 20% 7,521 7,500 1,000 10% 7,000 0 0% YTD Sep'10 YTD Sep'11 YTD Sep'10 YTD Sep'11 Net Income Net Profit excl extra items Higher growth of
Slide 17: Dividend Payment
Dividend Payment Dividend Payment The board of directors announced the Bt per share dividend payment with details as follows: 1.00 0.90 0.85 0.75 0.80 0.80 • Dividend payment for the year 2010 of 0.80 Bt 0.90 per share 0.45 0.50 0.60 0.40 0.40 0.45 Final • Interim Dividend payment for the year 0.40
Slide 18: Leverage
Leverage Net Debt to EBITDA Interest x Coverage 1.50 x x 40 35.9 1.08 1.00 30 24.8 0.69 0.59 0.55 17.7 18.7 18.8 17.8 20 0.50 0.45 0.37 10 0.00 0 2006 2007 2008 2009 2010 YTD Sep'11 2006 2007 2008 2009 2010 YTD Sep'11* * Interest expenses related to the investment in KH was Bt 69.5 million based on
Slide 19: Overall Volume Trend
Overall Volume Trend Total Visits per Day • Compared to Q3’10, total visits per day Visits 24.4% 4.9% 12.6% 8.8% 2.4% 2.8% increased by 4.9% (mainly from 3,200 2,877 2,889 3,030 International market), total admissions per 2,889 2,694 2,759 2,759 2,837 day stayed flat. 2,645 2,654 2,313 2,313 2,400 1
Slide 20: Revenue Intensity
Revenue Intensity Revenue per Visit • Revenue per visit growth resulted Bt 7,500 6.3% 5.4% 8.2% 10.0% from increased consumption in 2.8% 4.8% 6,012 6,000 5,209 5,538 5,217 5,465 5,444 5,596 5,671 5,976 5,538 5,993 5,465 outpatient ancillary services and 4,500 annual price adjustment. 3,000 • For Q3’
Slide 21: Revenue Breakdown
Revenue Breakdown Inpatient vs. Outpatient (% of revenue) Method of Payment (% of revenue) Outpatient Inpatient Corporate Contracts - 100% Corporate Insurance Domestic Contracts - Intl 13% 9% 8% 75% 49% 50% 51% 52% 51% 51% 50% 25% 51% 50% 49% 48% 49% 49% 0% Self-pay 2006 2007 2008 2009 2010 9M11 70%
Slide 22: International Breakdown
International Breakdown Revenue Contribution by Nationality • For 9M11, International revenue was up 23% from 9M10, primarily from volume growth. 100% 80% 45% 46% 45% 43% 40% • Top 5 revenue contribution countries 46% % of Revenue 60% 40% UAE 12% 54% 55% 54% 55% 57% 60% 20% USA 5% 0% 2006 2007 2008
Slide 23: Strategy
Strategy BI Bangkok Thailand International • Master Plan • Invest into Mid-Tier • Seller’s market in • Physician Recruitment Market countries with established • Expand BI Brand private sector • Reviewing small investments in emerging markets • Plan to open 5 clinic floors at Outpatient Service Bumru
Slide 24: Master Plan CAPEX
Master Plan CAPEX Million THB Y11* Y12* Y13 Y14 Y15 Total Est. Capital 794 924 1,273 888 49 3,928 Investment Note: * CAPEX for years 2011 and 2012 have been approved by the Board. The remaining year will require approval in each subsequent years budget submission. Capital Type Est. Capital Costs (TH
Slide 25: Kasemrad Hospital Group (KH)
Kasemrad Hospital Group (KH) • KH’s Q3’11 reported net profit was THB 195 million, a 6% increase from THB 184 million of Q3’10. For 9M11, Net profit was THB 512 million, a 5% increase from THB 486 million in 9M10. • BH recognized KH’s share of income in Q3’11 and 9M11 as the table below. (‘000 THB)
Slide 26: Table of Contents
Table of Contents 1. Company Information / Q3 Update Financials 2. Key Investment Highlights / Debenture Issue / Potential Key Covenants 3. Key Timeline 25
Slide 27: Key Investment Highlights
Key Investment Highlights Leading position and strong brand recognition among both domestic and international hospitals Experienced management team Solid medical profile in attracting competent medical team Strong financial profile 26
Slide 28: Debenture Issue
Debenture Issue Issuer Bumrungrad Hospital Public Company Limited (“BH”) Type Unsubordinated and Unsecured Thai THB Debentures Company Rating “A” with Stable Outlook by TRIS Coupon Type / Payment Fixed Rate / Semi-Annually Distribution Method Private Placement to institutional and high net-worth inv
Slide 29: Potential Key Covenants
Potential Key Covenants • Net Debts to Equity of not more than 1.75 times Financial Covenant • Net Debts to EBITDA of not more than 3.25 times • Negative pledge • No sale of key assets Other Key Terms & • No change of main business Conditions • Insurance on key assets • Maintain listing status • No
Slide 30: Table of Contents
Table of Contents 1. Company Information / Q3 Update Financials 2. Key Investment Highlights / Debenture Issue / Potential Key Covenants 3. Key Timeline 29
Slide 31: Key Timeline
Key Timeline November 2011 December 2011 SUN MON TUE WED THU FRI SAT SUN MON TUE WED THU FRI SAT 1 2 3 4 5 1 2 3 6 7 8 9 10 11 12 4 5 6 7 8 9 10 13 14 15 16 17 18 19 11 12 13 14 15 16 17 20 21 22 23 24 25 26 18 19 20 21 22 23 24 27 28 29 30 25 26 27 28 29 30 31 November 2011 December 2011 10 Nov : S
Bumrungrad Hospital Public Company — Debt Investor Presentation (November 2011) on 6ix