Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Parkway Holdings — FY2008 Earnings Presentation
35 slides from Singapore Exchange's earnings presentation, Feb 26, 2009
Slide 1: Full Year 2008 Financial Results
Full Year 2008 Financial Results Thursday, 26 February 2009
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 grow amidst challenging market conditions Group revenue increases 9%: • Singapore Operations revenue up 6% to S$633.2m; • International Operations revenue up 15% to S$312.2m. Net profit decreased 88% mainly due to the exceptional gain on disposal of th
Slide 5: Performance At A Glance
Performance At A Glance FY2008 FY2007 Change Revenue ($'000) 945,386 869,682 ↑ 9% EBITDAR ($'000) 217,526 194,686 ↑ 12% PATMI ($'000) 34,829 297,959 ↓ -88% PATMI excluding exceptional and one-off items ($'000) 89,840 85,523 ↑ 5% PATMI excluding exceptional and one-off items & net effects of REIT tra
Slide 6: Q4 2008 Results
Q4 2008 Results Q42008 Q42007 Change Revenue ($'000) 241,187 232,587 ↑ 4% EBITDAR ($'000) 62,648 51,132 ↑ 23% PATMI ($'000) (21,134) 32,151 ↓ -166% PATMI excluding exceptional and one-off items ($'000) 31,217 22,572 ↑ 38% PATMI excluding exceptional and one-off items & net effects of REIT transactio
Slide 7: Group Financial Highlights
Group Financial Highlights FY2008 FY2007 Var $'000 $'000 % REVENUE 945,386 869,682 9% OTHER OPERATING INCOME 24,979 23,759 5% EBITDAR 217,526 194,686 12% REIT Rental (48,668) (16,900) 188% Depreciation & Amortisation (49,258) (48,196) 2% Finance Costs1 (16,596) (22,774) -27% Interest Income 4,909 4,
Slide 8: Group Financial Highlights
Group Financial Highlights FY2008 FY2007 Var $'000 $'000 % NET PROFIT 34,829 297,959 -88% Add-back/(less-off) exceptional and one-off items Exceptional items 60,496 (207,640) NM Tax effects of exceptional items (6,879) (3,094) 122% Other one-off items1 1,394 (1,702) NM Exceptional and one-off items
Slide 9: Group Financial Highlights
Group Financial Highlights FY2008 FY2007 $'000 $'000 Exceptional Items: - Allowance made for impairment loss on receivables1 (34,414) - - Impairment loss on available-for-sale financial assets2 (16,221) - 3 - Restructuring costs (3,804) - - (Loss)/Gain on disposal of property, plant and equipment an
Slide 10: Group Revenue
Group Revenue $'000 Singapore International Group Hospital 473,610 188,675 662,285 Healthcare 150,814 123,485 274,299 Non-Healthcare 8,796 6 8,802 FY2008 633,220 312,166 945,386 Hospital 463,250 172,581 635,831 Healthcare 130,577 98,802 229,379 Non-Healthcare 4,157 315 4,472 FY2007 597,984 271,698 8
Slide 11: Group EBITDAR
Group EBITDAR $'000 Singapore International Group Hospital 121,557 33,918 155,475 Healthcare 31,094 27,163 58,257 Non-Healthcare 4,005 (211) 3,794 FY2008 156,656 60,870 217,526 Hospital 114,720 28,100 142,820 Healthcare 28,502 21,095 49,597 Non-Healthcare 1,303 966 2,269 FY2007 144,525 50,161 194,68
Slide 12: Contribution of Businesses
Contribution of Businesses Revenue Contribution FY2008 EBITDAR Contribution FY2008 12
Slide 13: Gearing
Gearing 31/12/08 31/12/07 Balance Sheet $'M $'M Total Assets 2,934 1,103 Total Liabilities (1,650) (522) Total Equity 1,284 581 Total Debt1 (1,223) (186) Total Cash 542 143 Net Debt (681) (43) Net Debt/Equity Ratio 0.53 0.07 With a strengthened capital structure post the rights issue, net debt to eq
Slide 14: Contents
Contents • Group Financial Highlights • Group Operations Review • Updates • Moving Forward 14
Slide 15: Group Hospital Operations
Group Hospital Operations Singapore International Group No. of Hospitals 3 12 15 Admissions - FY2008 81,397* 155,897 237,294 - FY2007 79,973* 144,281 224,254 Average Occupancy (%) - FY2008 59.9% 63.1% 62.3% - FY2007 64.5% 63.3% 63.6% Operational Beds - FY2008 760 2,131 2,891 - FY2007 767 1,979 2,746
Slide 16: Singapore Hospitals
Singapore Hospitals Change FY2008 FY2007 % Admissions 47,261 49,107 ↓ ‐3.8% Day Cases 34,136 30,866 ↑ 10.6% 81,397 79,973 ↑ 1.8% Total Admissions and Day Cases Net Revenue PAPD (All Facilities) $ 1,853 $ 1,749 ↑ 5.9 % Per Adjusted Patient Day Average Length of Stay (Days) 3.52 3.68 ↓ ‐4.3% Average O
Slide 17: Singapore Hospitals
Singapore Hospitals • Continuing trend in shift of volume from in-patient cases to outpatient cases with better technology and skillsets of doctors. • Trend expected to be more pronounced during any economic crisis as patients tend to seek outpatient treatment and postpone surgical procedures. • Hig
Slide 18: International Hospitals
International Hospitals FY2008 vs FY2008 Southeast Asia South Asia Gleneagles Apollo- Pantai Gleneagles Gleneagles JPMC Gleneagles Group Penang Intan KL Brunei Kolkata Parkway’s Stake (40%) (70%) (58%)1 (75%) (50%) Admissions ↑ 13.0% ↓ ‐7.8% ↑ 0.4% ↓ ‐2.3% ↑ 10.1% Occupancy ↑ 8.0% ↓ ‐13.8% ↑ 1.8% ↑
Slide 19: International Hospitals
International Hospitals South East Asia • Pantai group of hospitals are the main drivers of Revenue and EBITDAR for Q4 2008 International Hospitals’ results: - Growth in Pantai Bangsar arising from new cancer centre - Successful opening of new hospital in Klang - Strong contribution from Pantai Batu
Slide 20: International Hospitals
International Hospitals South East Asia (continued) • Acquisition of 70% of Gleneagles Intan KL (“GHKL”) by Pantai Irama Ventures (a 40%:60% JV between Parkway Group and Khazanah Nasional Berhad) results in GHKL becoming a 58% JV of the Group. The change in ownership provides opportunities for integ
Slide 21: International Hospitals
International Hospitals South Asia • Expansion of Apollo-Gleneagles Kolkata from 325 beds to 405 beds, with another 20 to be added. • Strong demand drives admission and revenue growth at Apollo-Gleneagles Kolkata; but margins were affected in Q2 by set-up expenses of the additional beds and one- off
Slide 22: Operations Review
Operations Review Singapore • Optimisation of Singapore operations and implementation of productivity measures in 2008 – Maximising operational synergy benefits in Singapore and Malaysia – Implementing economies of scale through centralised procurement – Flexing and redeployment of resources – Freez
Slide 23: Operations Review
Operations Review Singapore (continued) • Cost containment measures taken in December 2008 – Directors’ fees waived for FY2008 – Senior leaders’ base salaries reduced between 15% and 35% – Middle management’s base salaries reduced between 5% and 10% – A reduction of the Group’s total workforce in Si
Slide 24: Operations Review
Operations Review Singapore (continued) • Gleneagles maternity ward upgrading completed. • Upgrading of East Shore Hospital. • New Rehab & Homecare facility at Mount Elizabeth Hospital. • The Aquilion ONE dynamic volume CT scanner at Mount Elizabeth Hospital officially commenced operation in March 2
Slide 25: Operations Review
Operations Review Singapore (continued) • The Gamma Knife Centre at the ParkwayHealth Day Surgery & Medical Centre was officially opened on 9 October 2008. Up to 31 December 2008, 88 patients underwent Gamma Knife surgery. • Published “Reflections”, a booklet benchmarking ParkwayHealth’s Clinical Pe
Slide 26: Operations Review
Operations Review Singapore (continued) • Overall Patient Satisfaction Score at our hospitals improved to 90.5%, from 88.2% in 2007. • Launch of the Bright Ideas initiative in June 2008 by the Service Excellence Taskforce to encourage staff to work on projects for service improvement. 26
Slide 27: Operations Review
Operations Review Singapore • Following the setting up of Parkway Education in January 2008, Parkway College launched 11 courses in July 2008. • First Diploma in Nursing course was launched in November, with 106 students. This is the first nursing diploma offered by a private school to receive accre
Slide 28: Operations Review
Operations Review Middle East • Signing of hospital management contract to manage Danat Al Emarat (Arabic for “Pearl of the Emirates”) Women & Children’s Hospital in Abu Dhabi – ParkwayHealth’s first entry into the Middle-Eastern market – First overseas project in which ParkwayHealth is appointed as
Slide 29: Contents
Contents • Group Financial Highlights • Group Operations Review • Updates • Moving Forward 29
Slide 30: 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 commenced 11 November 2008 wit
Slide 31: Contents
Contents • Group Financial Highlights • Group Operations Review • Updates • Moving Forward 33
Slide 32: Moving Forward
Moving Forward Group • Continue focus on improving service and quality; and developing new disciplines. Singapore • Review of organisation structure to improve overall organisational effectiveness in order to position ourselves for future growth. • Strengthening and expanding our position in the Sin
Slide 33: 32 Fixed-Fee Surgical Packages
32 Fixed-Fee Surgical Packages* Cardiology (4) Neurosciences (2) • Coronoary Artery Bypass – Graft (CABG) • Cervical Spine Anterior Decompression & • Angiogram (Day Surgery) Fusion (Single Level) • Angiogram (1 Day Stay) • Pituitary, Excision of Tumour • PTCA-Percutaneous Transluminal Obstetrics & G
Slide 34: Moving Forward
Moving Forward South East Asia • Launch of “The Rebirth of Pantai” in February 2009 – Rebranding of Pantai hospitals – Expansion of five new hospitals over next five years 36
Slide 35: Thank You
Thank You For more information & updates: www.ParkwayHoldings.com 37