Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — RHT Health Trust — Q3 FY2017 Earnings Presentation
38 slides from Singapore Exchange's earnings presentation, Feb 6, 2017
Slide 1: Financial Results for the 3rd quarter ended 31 December 2016
Financial Results for the 3rd quarter ended 31 December 2016 RHT STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation is focused on comparing actual results from the period from 1 April 2016 to 31 December 2016 (“YTDFY17“). 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 Sin
Slide 3: Portfolio
Portfolio
Slide 4: RHT – Quality Assets Spread Across India
RHT– 18 Quality Assets Spread Across India National Capital Region Mohali 344 Operational Beds Delhi (Shalimar Bagh) 355 Installed Bed Capacity RHT: *500 Potential Additional Capacity 200 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 (5) (5) Consistent Growth in Operational Beds Since Listing Number of Operational Beds 3% 10% 8% 2% 16% 32% 2,607 2,651 2,908 3,200 1,706 2,252 IPO^ FY-14 FY-15 FY-16 FY-17 (P) FY-18 (P) Quarter on Quarter Growth in Operator’s Revenue Strong Growth from Capacity Expansion
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(3) FY15 FY16 3Q FY14 10.23 78% 2% 4% 5% 1% 4Q FY14(1) 10.72 73% 79% 79% 78% 81%
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: In-built Capacity for Expansion within Existing Portfolio
In-built Capacity for Expansion within Existing Portfolio Potential Additional Bed Current Operational Bed Current Installed Bed Capacity Hospitals Capacity Capacity (ex. Greenfield Clinical Establishments) Amritsar 155 166 89 Anandpur, Kolkata 200 373 BG Road, Bengaluru 255 258 197 Gurgaon 268 450
Slide 9: Development Project Pipeline
Development Project Pipeline Ludhiana Greenfield Clinical Establishment BG Road Brownfield Clinical Establishment Estimated Time of Completion 2017 (April) 2017 (April) No. of Beds Planned 79 200 Specialties Mother & Child Programmes Oncology, Operating Theatre Civil Cost INR 880 m (S$18.0 m) INR 1,
Slide 10: Capacity Enhancement Initiatives Underway
Capacity Enhancement Initiatives Underway Jaipur Clinical Establishment Mulund Clinical Establishment Nagarbhavi Clinical Establishment Estimated Time of Completion 2017 (April) 2018 (March) 2018 (March) No. of Additional Beds Planned 59 39 45 Mother and Child Health programme, Addition of 2 operati
Slide 11: Financials
Financials
Slide 12: Financial Highlights
Financial Highlights Attractive yield, gearing & P/B(1) Gross Asset Value (S$ m) With acquisition of Mohali land and development projects, post disposal of FHTL 51% 1,129 991 862 748 772 796 26.6% 6.7% 19.9% 1.1 Yield Gearing ratio* P/B IPO FY-13 FY-14 FY-15 FY-16 Post Disposal of FHTL Attractive yi
Slide 13: Financial Highlights
Financial Highlights DPU for 3QFY17 : 1.25 cents DPU YTD FY2017 : 4.85 cents 9.00 Period DPU Comparative DPU (2) 8.00 7.00 3Q FY16 1.91 cents per unit 1.45 cents per unit 6.73 (2) 6.00 5.00 2Q FY17 1.81 cents per unit 1.38 cents per unit 8.19 4.00 7.90 7.72 7.32 3.00 2.00 4.85 3QFY17 • 24.8 cents pe
Slide 14: Financial Highlights
Financial Highlights S$m 63.5 62.4 51.7 52.4 37.9 FHTL S$m - - 39.8 41.2 27.0 With 100% interest in FHTL, the (INRm) net service 2,795 3,010 4,337 4,433 fee margin is 65.9% 70.0 2,231 4500 67.6 75.0 3,161 68.0 67.0 70.0 3500 64.9 65.0 2500 2,449 2,507 1,846 60.0 1500 55.0 3,010 1,888 1,926 500 1,315
Slide 15: Financial Performance Over The Years
Financial Performance Over The Years Revenue (S$’000) (1)(2)(3)(4) Revenue (INR ‘000) (1)(2)(3)(4) 138.5 130.9 6,556.8 2.7 6,214.7 127.9 3.0 140.2 9.7 457.0 8.0 384.4 4,872.9 93.8 95.0 100.0 4,589.9 30.3 1,436.2 91.7 27.9 1,321.4 1.9 4,106.9 190.5 2.0 3.9 361.8 7.4 5.9 89.9 334.4 6.9 259.0 1,163.6 2
Slide 16: Review of 3Q FY17 against 3Q FY16 Performance
Review of 3Q FY17 against 3Q FY16 Performance Portfolio 3Q FY16 against 3Q FY17 (q-o-q) 3Q FY16 3Q FY17 Variance 3Q FY16 3Q FY17 Variance S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 22,196 22,544 1.6 1,040,505 1,072,630 3.1 Net Service Fee and Hospital Income 13,252 12,781 (3.6) 621,249 608,280
Slide 17: Review of 3Q FY17 against 2Q FY17 Performance
Review of 3Q FY17 against 2Q FY17 Performance Portfolio 2Q FY17 against 3Q FY17 (q-o-q) 2Q FY17 3Q FY17 Variance 2Q FY17 3Q FY17 Variance S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 22,823 22,544 (1.2) 1,123,678 1,072,630 (4.5) Net Service Fee and Hospital Income 12,604 12,781 1.4 620,561 608,2
Slide 18: Review of YTD FY17 Performance
Review of YTD FY17 Performance Portfolio YTD FY16 against YTD FY17 (y-o-y) YTD FY16 YTD FY17 Variance YTD FY16 YTD FY17 Variance S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 67,146 67,352 0.3 3,154,382 3,283,343 4.1 Net Service Fee and Hospital Income 39,665 37,865 (4.5) 1,863,402 1,854,903 (0.5
Slide 19: Financial Results for 3Q FY17
Financial Results for 3Q FY17 For the quarter ended 31 December 2016 3Q FY17 3Q FY16 (Restated)* Var S$'000 S$'000 (%) Revenue: Service fee 20,225 19,780 2 Hospital income 2,255 2,381 (5) Other income 608 647 (6) Total revenue 23,088 22,808 1 Service fee and hospital expenses: Total service fee and
Slide 20: Financial Results for 3Q FY17
Financial Results for 3Q FY17 For the quarter ended 31 December 2016 Reconciliation to Unitholders Distribution 3QFY17 3QFY16 (Restated)* S$'000 S$'000 Profit for the period attributable to unitholders of the Trust 103,497 11,231 Distribution adjustments: Impact of non-cash straight-lining (544) (61
Slide 21: Financial Results and Cash Flow of FHTL for 3Q FY17
Financial Results and Cash Flow of FHTL for 3Q FY17 For the quarter ended 31 December 2016 FY17 Q3 - Associate FY17 Q3 (13 October 2016 to (up till 12 October 31 December 2016) 2016) Q3 FY16 S$'000 S$'000 S$'000 Revenue: Total revenue 12,941 1,984 13,107 Total expenses (5,822) (491) (3,428) Profit b
Slide 22: Financial Results for YTD FY17
Financial Results for YTD FY17 For the period ended 31 December 2016 YTD FY17 YTD YTD FY16 (Restated)* Var S$'000 S$'000 (%) Revenue: Service fee 59,624 59,507 n.m. Hospital income 7,422 7,582 (2) Other income 1,880 1,893 (1) Total revenue 68,926 68,982 n.m. Service fee and hospital expenses: Total
Slide 23: Financial Results for YTD FY17
Financial Results for YTD FY17 YTD For the period ended 31 December 2016 YTD FY16 YTD FY17 (Restated)* S$'000 S$'000 Profit for the period attributable to unitholders of the Trust 125,446 34,517 Distribution adjustments: Impact of non-cash straight-lining (1,574) (1,836) Technology renewal fee (480)
Slide 24: Financial Results and Cash Flow of FHTL for YTD FY17
Financial Results and Cash Flow of FHTL for YTD FY17 For the period ended 31 December 2016 YTD FY17 - Associate YTD FY17 (13 October 2016 to (up till 12 October 31 December 2016) 2016) YTD FY16 S$'000 S$'000 S$'000 Revenue: Total revenue 12,941 27,938 39,036 Total expenses (5,822) (5,883) (10,405) P
Slide 25: Balance Sheet
Balance Sheet (S$ ‘000) 31 December 16 31 March 16 Intangibles 94,007 127,986 PPE 548,522 844,851 Other long term assets 41,650 66,841 Net assets of FHTL 350,196 - Long term liabilities (259,678) (313,541) Net current (liabilities)/assets (98,892) 13,471* Total net assets attributable to unitholders
Slide 26: Hedging - Foreign currency exposure
Hedging - Foreign currency exposure • At present, RHT hedges 100% of its Indian denominated cashflows receivable every 6 months from India. • Commencing FY2018, RHT will hedge 50% of such cashflows. • RHT has hedged the following foreign exchange exposures: Forward Premium over Spot Contracted rate
Slide 27: 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 28: RHT Distribution Policy
RHT Distribution Policy Our distribution policy provides for distribution of at least 90% of the Distributable Income. For FY2017, RHT TM is distributing 95% of its Distributable Income. The 5% retained will be used to fund future capital expenditure in relation to expansion or other growth in
Slide 29: Appendix
Appendix
Slide 30: Unit Price Performance Against Peers
Unit Price Performance Against Peers For the quarter 1 October 2016 to 31 December 2016 RHT Health Trust First Real Estate Investment Trust Parkway Life REIT Ascendas India Trust 105% 100% 95% 90% 85% 80% 30 Sep 16 11 Oct 16 20 Oct 16 31 Oct 16 09 Nov 16 18 Nov 16 29 Nov 16 08 Dec 16 19 Dec 16 29 De
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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)(6) (Operations) S$m 110.5 106.9 85.9 91.3 68.9 S$m 63.5 62.4 51.7 52.4 37.9 FHTL FHTL - - - 50.1 51.7 34.3 S$m - 39.8 41.2 27.0 Mar
Slide 37: 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 Total Assets(5) expenses) S$m 962.9 958.4 761.1 797.2 713.9 S$m 56.2 56.2 41.7 44.2 26.8 FHTL FHTL - - 406.7 410.9 350.2 S$m - - 3
Slide 38: For further information please contact: Tan Suan Hui
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 38