Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — RHT Health Trust — Q1 FY2018 Earnings Presentation
33 slides from Singapore Exchange's earnings presentation, Aug 8, 2017
Slide 1: Financial Results for the First Quarter ended 30 June 2017
Financial Results for the First Quarter ended 30 June 2017 RHT (“1QFY2018”) STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation is focused on comparing actual results from the period from 1 April 2017 to 30 June 2017 (“1QFY18“). 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 the Singapor
Slide 3: Portfolio
Portfolio
Slide 4: RHT – Quality Assets Spread Across India
RHT– 18 Quality Assets Spread Across India National Capital Region Mohali 350 Operational Beds Delhi (Shalimar Bagh) 355 Installed Bed Capacity RHT: *480 Potential Additional Capacity 218 Operational Beds Investment mandate to invest in medical 350 Installed Bed Capacity and healthcare assets and
Slide 5: Stable Portfolio and Growth
Stable Portfolio and Growth (1) (1) Consistent Growth in Operational Beds Since Listing Number of Operational Beds FY16 FY17 16% 14% 7% 5% 4% 4,790 15% 4,120 4,260 3,970 2% 3,190 16% 2,810 2,740 2,870 2,730 2,830 32% 2,607 2,651 2,252 2,651 3,046 1,706 IPO^ FY-14 FY-15 FY-16 FY-17 FY-18 (P) Gurgaon
Slide 6: Diversified Portfolio of Quality Assets
Diversified Portfolio of Quality Assets RHT’s assets are spread across India with increasing income generated Solid Portfolio Characteristics Stable Occupancy in RHT Clinical Establishments^ ARPOB (INR m) Occupancy rate FY16 FY17 3Q FY14 10.23 78% 4Q FY14 10.72 73% 79% 80% 81% 80% 81% 84% 75% 73% 1Q
Slide 7: Stable Portfolio Providing Upside Exposure
Stable Portfolio Providing Upside Exposure Fee structure offers RHT ideal combination of guaranteed, stable cash-flows with opportunity to participate in operational growth of its healthcare assets Solid Portfolio Characteristics(4) Stability from Base Fee Component(4) Income-generating Assets Accou
Slide 8: Capacity for Expansion within Existing Portfolio
Capacity for Expansion within Existing Portfolio 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 255 258 200 Gurgaon 290 450 550 Fari
Slide 9: Development Project Pipeline
Development Project Pipeline Ludhiana Greenfield Clinical Establishment BG Road Brownfield Clinical Establishment Estimated Time of Completion December 2017 September 2017 No. of Beds Planned 70 200 Specialties Mother & Child Programmes Oncology, Operating Theatre Civil Cost INR 880 m (S$18.0 m) INR
Slide 10: Capacity Enhancement Initiatives Underway
Capacity Enhancement Initiatives Underway Jaipur Clinical Establishment Mulund Clinical Establishment Nagarbhavi Clinical Establishment Estimated Time of Completion Completed and operations commenced March 2018 June 2018 No. of Additional Beds Planned 59 39 45 Mother & Child and Orthopedics Addition
Slide 11: Financials
Financials
Slide 12: Financial Highlights
Financial Highlights Attractive yield, gearing & P/B (1) Gross Asset Value (S$ m) 50% 1,129 1,121 991 748 772 796 28.0%* 5.5% 23.0% 1.06 Yield Gearing ratio P/B IPO FY-13 FY-14 FY-15 FY-16 FY-17 * Post FHTL disposal and completion of asset enhancement projects, and without inclusion of NCDs. Attract
Slide 13: Financial Highlights
Financial Highlights Distribution Amount for 1Q FY18: 1.22 cents DPU (Singapore cents) Y-o-Y comparison Period DPU 9.00 4QFY17 1.12 cents per unit 8.00 4.90 Singapore cents if the Disposal took place 1QFY18 1.22 cents per unit 7.00 on 1 April 2016. 6.00 5.00 4.00 7.90 8.19 7.32 7.72 3.00 5.97 4.88 2
Slide 14: Financial Highlights
Financial Highlights Adjusted Net Service Fee and Margin (1)(2)(3)(4)(6) (Operations) Total Assets (5) S$m 63.5 62.4 51.7 52.4 50.9 54.3 S$m 962.9 958.4 761.1 797.2 734.4 755.4 FHTL FHTL S$m - - 39.8 41.2 32.3 22.5 S$m - - 406.7 410.9 352.3 355.6 With 100% (INRm) interest in (INRm) 42,127 45,743 51,
Slide 15: Financial Performance Over The Years
Financial Performance Over The Years Revenue (S$’000) (1)(2)(3)(4) Revenue (INR ‘000) (1)(2)(3)(4) 138.5 130.9 129.0 6,556.8 2.7 123.6 6,244.1 3.0 2.8 6,214.7 9.7 4.2 127.9 5,761.6 8.0 9.6 140.2 136.8 93.8 95.0 457.0 10.2 4,589.9 195.2 30.3 384.4 463.8 27.9 2.0 3.9 31.6 4,106.9 1,436.2 473.5 33.0 19
Slide 16: Review of 1Q FY18 against 1Q FY17 Performance
Review of 1Q FY18 against 1Q FY17 Performance Portfolio 1Q FY17 against 1Q FY18 (q-o-q) 1Q FY17 1Q FY18 Variance 1Q FY17 1Q FY18 Variance S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 21,985 24,108 9.7 1,087,036 1,123,072 3.3 Net Service Fee and Hospital Income^ 12,480 13,581 8.8 617,061 632,644
Slide 17: Review of 1Q FY18 against 4Q FY17 Performance
Review of 1Q FY18 against 4Q FY17 Performance Portfolio 4Q FY17 against 1Q FY18 (q-o-q) 4Q FY17 1Q FY18 Variance 4Q FY17 1Q FY18 Variance S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 22,567 24,108 6.8 1,068,248 1,123,072 5.1 Net Service Fee and Hospital Income^ 13,059 13,581 4.0 618,598 632,644
Slide 18: Financial Results for 1Q FY18
Financial Results for 1Q FY18 For the quarter ended 30 June 2017 1Q FY18 1Q FY17 (Restated)* Var S$'000 S$'000 (%) Revenue: Service fee 20,922 19,440 8 Hospital income 2,541 2,532 - Other income 1,050 525 100 Total revenue 24,513 22,497 9 Total service fee and hospital expenses (13,568) (12,329) 10
Slide 19: Financial Results for 1Q FY18
Financial Results for 1Q FY18 For the quarter ended 30 June 2017 Reconciliation to Unitholders Distributable Income 1Q FY18 1Q FY17 (Restated)* S$'000 S$'000 Profit for the period attributable to Unitholders of the Trust 9,181 10,666 Distribution adjustments: Impact of non-cash straight-lining (405)
Slide 20: Financial Results and Cash Flow of FHTL for 1Q FY18
Financial Results and Cash Flow of FHTL for 1Q FY18 For the quarter ended 30 June 2017 1Q FY18 - Associate 1Q FY17 S$'000 S$'000 Revenue: Total revenue 14,799 12,894 Total expenses (7,771) (2,957) Profit before tax 7,028 9,937 Income tax expense (1,168) (1,694) Profit for the year 5,860 8,243 Share
Slide 21: Balance Sheet
Balance Sheet (S$ ‘000) 30 June 17 31 March 17 Intangibles 93,169 94,640 PPE 559,514 562,074 Other long term assets 77,032 78,103 Investment in associate 355,588 352,717 Long term liabilities (401,396) (286,191) Net current liabilities (1,559) (104,969) Total net assets attributable to Unitholders 6
Slide 22: Hedging & Distribution Policies
Hedging & Distribution Policies HEDGING POLICY Commencing FY2018, RHT is hedging 50% of of its Indian denominated cashflows receivable every 6 months from India.. Distribution Forward Premium over Spot Contracted rate Paid/Payable INR 53.19 to SGD 1 Dec-14 54 20.0 53 53.19 INR 51.38 to SGD 1 Jun-15
Slide 23: Key Credit Ratios and Debt Maturity
Key Credit Ratios and Debt Maturity Conservative financial profile with generous debt headroom; INR cash flows from India hedged into SGD on a one year forward basis via forward contracts on a semi-annual basis Low Gearing with Conservative Capital Structure Interest Coverage Ratios(1) (S$m) Total D
Slide 24: 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 #18-02/03 Tong Building Singapore 238862 Email: suanhui.tan@rhealthtrust.com www.rhealthtrust.com 24
Slide 25: Appendix
Appendix
Slide 26: 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 27: Unit Price Performance Against Peers
Unit Price Performance Against Peers For the quarter 1 April 2017 to 30 June 2017 R HT HealthT rust FirstR EIT P arkw ay L ifeR EIT AscendasIndiaT rust FT S ES R BT Index 115% 113% 111% 109% 107% 105% 103% 101% 99% 97% 95% 31 M ar17 11 A pr17 21 A pr17 03 M ay 17 15 M ay 17 24 M ay 17 02 Jun 17 13 J
Slide 28: 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 29: Awards & Accolades
Awards & Accolades RHT featured as one of “Asia’s Top 50 Healthcare Providers” by Frost and Sullivan Jaipur Clinical Establishment - Six Sigma Healthcare Excellence Awards – 2013 ‘Best Hospital in Patient Care, Best Hospital in Patient Safety and Best Hospital in Quality Initiatives. - Recognised as
Slide 30: Awards & Accolades
Awards & Accolades Mulund Clinical Establishment - Received JCI Accreditation for the 4th consecutive time. - Stars of the Industry Healthcare Leadership Award (Patient Safety). - FICCI Healthcare Award (Operational Excellence). - FICCI ‘Special Jury Recognition Award’. - Won 3 awards at the prestig
Slide 31: Awards & Accolades
Awards & Accolades Nagarbhavi Clinical Establishment - National Energy Conservation Award. Noida Clinical Establishment - Won ‘Comprehensive Neurosciences Service Provider of the Year’ award at Frost and Sullivan’s 7th Annual India Healthcare Excellence Awards 2015. - National Energy Conservation Aw
Slide 32: Financial Highlights
Financial Highlights Strong growth in revenue, income, and EBITDA witnessed in recent years Gross Revenue(1)(2)(3)(5)(6) Adjusted Net Service Fee and Margin (1)(2)(3)(4)(7) (Operations) S$m 110.5 106.9 85.9 91.3 92.0 98.0 S$m 63.5 62.4 51.7 52.4 50.9 54.3 FHTL - 40.8 29.0 FHTL - 39.8 41.2 32.3 22.5
Slide 33: Financial Highlights
Financial Highlights Strong growth in revenue, income, and EBITDA witnessed in recent years Adjusted EBITDA and EBITDA Margin(1)(2)(3)(4)(6)(7) (Operations & Trust level expenses) Total Assets (5) S$m 56.2 56.2 41.7 44.2 38.0 44.3 S$m 962.9 958.4 761.1 797.2 734.4 755.4 With 100% FHTL interest in FH