PT Mitra Keluarga Karyasehat Tbk · IDX:MIKA
PT Mitra Keluarga Karyasehat Tbk — Investor Presentation (May 2015)
48 slides from PT Mitra Keluarga Karyasehat Tbk's investor presentation, May 2015
Slide 1: PT Mitra Keluarga Karyasehat Tbk Company Presentation
PT Mitra Keluarga Karyasehat Tbk Company Presentation May 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”). This presentation has been prepared solely for use in connection with the release of 31 March 2015 unaudited results of the Company.
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
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 listed Revenue
Slide 6: Focused on 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 • RSMK Existing Hospital Disposed Hospital Kenjeran Upcoming Hospital • RSMK 2015 Cikarang • RSMK Depok 2014 2011 • RSMK Kelapa Gading • RSMK • RSMK Surabaya 2009 2010 Kalideres(2) • RSMK Bekasi 2004 • RSMK 2008 Cibubur Barat 2001 • RSMK Tegal 2002 • RSMK Bekasi
Slide 8: Best-in-Class Business Model with Strong Fundamentals
Best-in-Class Business Model with Strong Fundamentals Business Model Fundamentals Benefits 1 “Mitra Keluarga” branded “Community Center Location” to maximize patient volumes and occupancy rates by capturing demand from the large populations from surrounding communities community hospitals providin
Slide 9: Investment Highlights
Section 2 Section 2 Investment Highlights Investment Highlights 9
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 Patient Volume Growth Inpatient Admissions 105,604 106,281 96,062 Outpatient Visits 87,536 84,198 71,232 1,571,744 1,620,447 1,476,149 1,225,821 1,314,163 1,089,617 27,875 425,452 2009 2
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% 13.6% 12.3% 10.8% 8.6% 7.8% 7.3% 5.2% 2.1% 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 with Comprehensive Services
Best-in-Class Community Hospitals with Comprehensive General Hospital 3 Services and Targeted Specialist Services Best-in-Class Community Hospitals… … With Comprehensive Healthcare Services Laboratory • Strategically located in attractive population Cardiovascular (non-invasive) catchment areas
Slide 15: Successful Growth 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 Operating Beds • Demand-driven expansion strategy based on End of Period 1,647 1,659 careful assessment of needs to ascertain targ
Slide 16: 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 Days Maximum Bed Capacity 25,352 23,576 178 12,903 7,999 91 (1) 2011 2014 2011 2014 2008 2014 Occupancy Rate (%) Occupancy Rate
Slide 17: 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 quality and Gold Award Gold Award cost efficient medical services using modern equipment Chain Hospital Most Recommended (Greater Jakarta) Hospital (Jakarta) • Over 25 ye
Slide 18: Proven Ability to Attract and Retain 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 19: Well Qualified and Experienced Management Team
7 Well Qualified and Experienced Management Team Board of Directors Exceptional Management • Relevant experience, depth and diversity • 11 out of 13 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 20: Growth Strategies
Section 3 Growth Strategies Section 3 Growth Strategies 20
Slide 21: 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 21
Slide 22: 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 RSMK Kalideres 2Q2015 Site 1
Slide 23: 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 (1) 2014 Beds 1,647 Bekasi Timur 19 Kelapa Gading 4 Surabaya 25 Cikarang 20 Depok 15 Cibubur 15 Waru 17 +384 beds 2015
Slide 24: 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 25: 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 26: Financial Highlights
Section 4 Section 4 Financial Highlights Financial Highlights 26
Slide 27: 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 28: Key Performance Indicators
Key Performance Indicators 2011A 2012A 2013A 2014A 2011-14 CAGR 3M15 Inpatient 818 992 1,173 1,281 16.1% 344 Revenues by Patient Type Outpatient 385 483 569 665 19.9% 197 (IDR Bn) Total 1,203 1,475 1,742 1,946 17.4% 541 No. of Inpatient Days (‘000) 317 351 392 382 6.4% 99 No. of Outpatient Visits (‘
Slide 29: Revenue by Inpatient and Outpatient Services
Revenue by Inpatient and Outpatient Services Revenue Breakdown by Services Revenue (2014) Others 12% Operating Outpatient Rooms 34% 7% Drugs and Inpatient Medical Accommodation Supplies 11% 45% Inpatient Medical 66% Support Services 23% Total : IDR 1,946 Bn Total : IDR 1,946 Bn Inpatient Services Ty
Slide 30: 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% 63.1% 59.3% 55.6% 47.7% 1,661 154 (2) (3) 2011 2012 2013 2014 3M15 Book Value Mark-to-Market (Sep-14) Value (1) ROIC calculated as (Income from Operat
Slide 31: Cash Flow: Capital Expenditure
Cash Flow: Capital Expenditure Capital Expenditure (IDR Bn) 400 350 300 256 250 16 200 69 166 357 5 11 150 12 13 39 284 80 50 100 74 65 10 6 2 8 9 120 2 50 27 31 86 47 26 31 0 9 10 2011 2012 2013 2014 3M2015 2015F 2016F Construction in progress Medical Equipment Office equipment and furniture Landri
Slide 32: 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 24 23 20 17 2011 2012 2013 2014 3M15 2011 2012 2013 2014 3M15 Trade Payables Days (3) Cash Cycle Days (4) (Days) (Days) 41 39 40 36 33 15 14 7 7 8 2011 2012 2013 2014 3M15 20
Slide 33: Conclusion
Section 5 Conclusion Section 5 Offering Structure and Indicative Timetable 33
Slide 34: 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 35: Appendix
Section 6 Section 6 Appendix Conclusion and Q&A 35
Slide 36: Unaudited Financial Statement YTD March 2015: Assets
Unaudited Financial Statement YTD March 2015 31 March 2015 31 December 2014 % Consolidated Balance Sheets (Unaudited) (Audited) Change ASSETS CURRENT ASSETS Cash and cash equivalents 2,319,532,771,815 970,150,340,494 139.1% Trade receivables Third parties - net of allowance for impairment losses of
Slide 37: Unaudited Financial Statement YTD March 2015: Liabilities
Unaudited Financial Statement YTD March 2015 31 March 2015 31 December 2014 % Consolidated Balance Sheets (Unaudited) (Audited) Change LIABILITIES CURRENT LIABILITIES Trade payables Third parties 54,829,163,587 47,142,971,007 16.3% Related parties 18,741,292,774 17,795,569,303 5.3% Other payables Th
Slide 38: Unaudited Financial Statement YTD March 2015: Equity
Unaudited Financial Statement YTD March 2015 31 March 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 100 Authorized - 5,000,000,000 shares Issued and fully paid - 1,455
Slide 39: Unaudited Financial Statement YTD March 2015: Income
Unaudited Financial Statement YTD March 2015 31 March 2015 31 March 2014 % Consolidated Statement of Income (Unaudited) (Unaudited) Change REVENUES 541,289,375,790 492,824,528,702 9.8% COST OF REVENUES -293,696,227,335 (266,878,261,729) 10.0% % to Revenues -54.3% -54.2% GROSS PROFIT 247,593,148,455
Slide 40: Unaudited Financial Statement YTD March 2015: Income
Unaudited Financial Statement YTD March 2015 31 March 2015 31 March 2014 % Consolidated Statement of Income (Unaudited) (Unaudited) Change INCOME TAX EXPENSE – NET (42,292,878,989) (37,424,405,930) 13.0% % to Revenues -7.8% -7.6% INCOME FOR THE PERIOD 151,011,233,774 131,310,349,851 15.0% % to Reven
Slide 41: Unaudited Financial Statement YTD March 2015: Cash Flows
Unaudited Financial Statement YTD March 2015 31 March 2015 31 March 2014 % Consolidated Statement of Cash Flows (Unaudited) (Unaudited) Change CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers 520,522,872,753 442,694,885,847 17.6% Cash paid to suppliers (204,953,497,539) (198,913,335
Slide 42: Unaudited Financial Statement YTD March 2015: Cash Flows
Unaudited Financial Statement YTD March 2015 31 March 2015 31 March 2014 Consolidated Statement of Cash Flows % Change (Unaudited) (Unaudited) CASH FLOWS FROM FINANCING ACTIVITIES Cash receipts from of Initial Public Offering 1,209,824,384,688 - N/A Payments of bank loan - (50,000,000,000) -100.0% P
Slide 43: Hospital Assets: Network of Community Hospitals
Hospital Assets: Network of 11 Community Hospitals Hospital Start of Operation Bed Capacity Operational Beds (1) Owned Bekasi Barat 1993 272 272 Bekasi Timur 2004 290 243 Greater Jakarta Cikarang 2010 145 90 Kelapa Gading 2002 167 163 Kemayoran 1998 166 166 Rent(3) Depok 2008 178 172 Cibub
Slide 44: 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 45: 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 Practitioner Specialist Services 1 Broaden Scope of Services Services • Access to entire network of specialist services via any entry
Slide 46: 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 47: 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 private universal health coverage by 2019 in several healthcare expenditur
Slide 48: 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 48
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