Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Parkway Holdings — Q3 2008 Earnings Presentation
31 slides from Singapore Exchange's earnings presentation, Nov 12, 2008
Slide 1: Third Quarter 2008 Financial Results
Third Quarter 2008 Financial Results Wednesday,12 November 2008
Slide 2: Disclaimer
Disclaimer This is a presentation of general information relating to the current activities of Parkway Holdings Limited (“Parkway”). It is given in summary form and does not purport to be complete. In addition, the presentation may contain forward-looking statements relating to financial trends for
Slide 3: Contents
Contents • Group Financial Highlights • Group Operations Review • Updates • Moving Forward 3
Slide 4: Group Financial Highlights
GROUP FINANCIAL HIGHLIGHTS Parkway continues to show revenue growth in the third quarter Group revenue increases 11%: • Singapore Operations revenue up 8% to S$476.7m; • International Operations revenue rises 17% to S$227.5m. Net profit (excluding one-off items and net effects of the REIT transactio
Slide 5: Performance At A Glance
Performance At A Glance YTD YTD 30 Sep 2008 30 Sep 2007 Change Revenue ($'000) 704,199 637,095 ↑ 11% EBITDAR ($'000) 154,878 143,554 ↑ 8% PATMI ($'000) 55,963 271,307 ↓ -79% PATMI excluding one-off items ($'000) 58,623 62,951 ↓ -7% PATMI excluding one-off items & net effects of REIT transactions ($'
Slide 6: Group Financial Highlights
Group Financial Highlights YTD YTD 30 Sep 2008 30 Sep 2007 Var $'000 $'000 % REVENUE 704,199 637,095 11% OTHER OPERATING INCOME 13,620 14,293 -5% (exclude interest income) EBITDAR 154,878 143,554 8% REIT Rental (36,030) (5,075) 610% Depreciation & Amortisation (36,971) (36,604) 1% Net Interest Expen
Slide 7: Group Financial Highlights
Group Financial Highlights YTD YTD 30 Sep 2008 30 Sep 2007 Var $'000 $'000 % NET PROFIT 55,963 271,307 -79% (Less)/Add one-off items: (a) REIT exceptional items - (201,941) (b) Tax effects on REIT exceptional items - (2,351) (c) Gain on disposal of equity investment - (1,962) (d) Gain on disposal of
Slide 8: Group Revenue
Group Revenue $'000 Singapore International Group Hospital 358,732 137,068 495,800 Healthcare 110,675 90,438 201,113 Non-Healthcare 7,281 5 7,286 YTD 30 Sep 2008 476,688 227,511 704,199 Hospital 344,388 128,173 472,561 Healthcare 94,513 66,666 161,179 Non-Healthcare 3,064 291 3,355 YTD 30 Sep 2007 4
Slide 9: Group EBITDAR
Group EBITDAR $'000 Singapore International Group Hospital 123,828 23,483 147,311 Healthcare 24,337 21,155 45,492 Non-Healthcare 3,486 (142) 3,344 Unallocated Group Corp Costs (41,269) YTD 30 Sep 2008 151,651 44,496 154,878 Hospital 114,234 21,478 135,712 Healthcare 24,268 14,372 38,640 Non-Healthca
Slide 10: Contribution of Businesses
Contribution of Businesses Revenue Contribution YTD 30 Sep 2008 EBITDAR Contribution YTD 30 Sep 2008* * Contribution without allocation of Group Corporate Costs 10
Slide 11: Contents
Contents • Group Financial Highlights • Group Operations Review • Updates • Moving Forward 11
Slide 12: Group Hospital Operations
Group Hospital Operations Singapore International Group No. of Hospitals 3 12 15 Admissions - YTD 30 Sep 2008 61,065* 114,965 176,030 - YTD 30 Sep 2007 59,794* 107,482 167,276 Average Occupancy (%) - YTD 30 Sep 2008 61.4% 62.8% 62.5% - YTD 30 Sep 2007 64.9% 64.4% 64.5% Operational Beds - YTD 30 Sep
Slide 13: Parkway's Financial Performance
Parkway’s Financial Performance Parkway has grown at a CAGR of 11% since 1995 through organic and inorganic means Healthcare Revenue 1995 to 2007 FY04 vs FY03 FY99 vs FY98 • Revenue growth of 17% • Revenue growth of 9% • PATMI increased 50% • Net profit before extraordinary items increased 39% Asian
Slide 14: Singapore Hospitals
Singapore Hospitals YTD YTD Change 30 Sep 2008 30 Sep 2007 % Admissions 35,638 36,860 ↓ ‐3.3% Day Cases 25,427 22,934 ↑ 10.9% 61,065 59,794 ↑ 2.1% Total Admissions and Day Cases Net Revenue PAPD (All Facilities) $1,850 $1,747 ↑ 5.9% Per Adjusted Patient Day Average Length of Stay (Days) 3.59 3.69 ↓
Slide 15: Singapore Hospitals
Singapore Hospitals • Robust growth in day cases, made possible by advanced technology and high intensity, continues to drive Net Revenue PAPD at all facilities. • During economic crisis, more patients tend to seek outpatient treatment and postpone surgical procedures. • Patients from non-traditiona
Slide 16: International Hospitals
International Hospitals YTD 30 Sep 2008 vs YTD 30 Sep 2007 Southeast Asia South Asia Gleneagles Apollo- Pantai Gleneagles Gleneagles JPMC Gleneagles Group Penang Intan KL Brunei Kolkata Parkway’s Stake (40%) (70%) (30%) (75%) (50%) Admissions ↑ 11.4% ↓ ‐8.2% ↓ ‐0.3% ↓ ‐7.4% ↑ 10.6% Occupancy ↑ 2.2%
Slide 17: International Hospitals
International Hospitals South East Asia • Pantai group of hospitals are the main drivers of Revenue and EBITDAR for Q3 2008 International Hospitals’ results: - Healthy growth in almost all hospitals with increasing patient loads - Implemented cost containment measures e.g. energy costs, centralised
Slide 18: International Hospitals
International Hospitals South East Asia (continued) • Gleneagles Penang’s new development of 280-bed hospital is on schedule. Meanwhile, expenses has increased due to training of nurses for the new hospital. • More cardiac surgical cases in Gleneagles JPMC increased occupancy rate and boost EBITDAR
Slide 19: Operations Review
Operations Review Singapore • Embarked on Operational Excellence initiatives to improve service quality, obtain higher yields, faster throughput and minimise waste. • New Parkway Cancer Centres opened in Gleneagles and Mount Elizabeth Hospitals to cater to increased demand for oncology services by l
Slide 20: Operations Review
Operations Review Singapore (continued) • Performed 22 living related donor liver and 51 living related renal transplants respectively year to date; a testimony of the strength of our Transplant Program. • Official opening of Gamma Knife Center at ParkwayHealth Day Surgery & Medical Center in Octobe
Slide 21: Operations Review
Operations Review International • Preparation underway for JCI accreditation in Pantai Bangsar, Pantai Mutiara and Pantai Ayer Keroh. • Further increase in inpatient capacity by 55 beds to 380 beds in Q3 at Apollo-Gleneagles Kolkata; Another 25 beds to be added by year end to meet demand. • Design a
Slide 22: Operations Review
Operations Review International (continued) • Business continues to ramp up in Shanghai with the introduction of new services including Opthalmology, Dermatology and Plastics Surgery. 22
Slide 23: Contents
Contents • Group Financial Highlights • Group Operations Review • Updates • Moving Forward 23
Slide 24: Novena Hospital
Novena Hospital • Regulatory approval obtained for additional carpark space. • Ground breaking on 11 November 2008 with Minister Khaw Boon Wan as guest-of-honour; 200 guests invited. • Schematic design completed; entering into next phase of design development. • Piling to commence end of 2008 or ear
Slide 25: Novena Hospital
Novena Hospital • Full financing secured to complete the Novena Project over the next 3 years • Credit facilities comprises: • $500 million unsecured loan due in July 2011; fully drawn • $850 million secured loan due in July 2013; $560 million drawn on 11 November 2008 • With a strengthened capital
Slide 26: Gearing
Gearing 31/12/07 30/09/08 Balance Sheet $'M $'M Total Assets 1,103 2,482 Total Liabilities (523) (1,166) Total Equity 580 1,316 Total Debt (187) (800) Total Cash 143 158 Net Debt/Equity Ratio 0.08 0.49 26
Slide 27: Contents
Contents • Group Financial Highlights • Group Operations Review • Updates • Moving Forward 27
Slide 28: Moving Forward
Moving Forward Singapore • Clinical programs to involve all physicians, who are accredited with our hospitals in Singapore, will be encouraged to participate in developing the quality framework for their respective specialties. • Working towards price transparency for physicians’ fees and hospital c
Slide 29: Moving Forward
Moving Forward Singapore (continued) • First intake of Diploma in Nursing course at Parkway College to start on 24 November 2008 with total of 112 students of which 89 are foreigners. • Advanced diplomas in nursing in Critical Care (ICU) and Peri-Operative (OT) to be launched in early 2009. • School
Slide 30: Moving Forward
Moving Forward International • Complete Apollo-Gleneagles Kolkata beds expansion by end 2008. • Setting up of Centre of Excellence for Oncology offering comprehensive range for oncology services in Apollo-Gleneagles Kolkata. • Ground breaking for new hospital in Mumbai by end 2008 or early 2009. Exp
Slide 31: Thank You
Thank You For more information & updates: www.ParkwayHoldings.com