Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Religare Health Trust — FY2016 Earnings Presentation
37 slides from Singapore Exchange's earnings presentation, May 25, 2016
Slide 1: FY16 RHT Results
FY16 RHT Results STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer This presentation is focused on comparing actual results from the period from 1 April 2015 to 31 March 2016 (“FY16”). 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 Singapore
Slide 3: Financial Highlights
Financial Highlights Attractive yield, low gearing & P/B Business Value (S$ m) With acquisition of Mohali land and development projects 51% 1,129 991 748 772 796 21.9%* 7.9% 18.1% 1.1 Yield Gearing ratio P/B IPO FY-13 FY-14 FY-15 FY-16 Attractive yield of 8% over the last 4 financial years Distribut
Slide 4: Financial Highlights
Financial Highlights Cumulative Distribution Amount for 2H FY16: 3.82 cents Ex-date: 2 June 2016 at 9.00 am Books Closure Date: 6 June 2016 at 5.00 pm Payment Date: 15 June 2016 DPU (Singapore cents) Y-o-Y comparison Period 1 October 2015 to 31 March 2016 3Q FY16 1.91 cents per unit 4Q FY16 1.91 cen
Slide 5: Financial Performance for FY16
Financial Performance for FY16 Revenue (S$’000) (1)(2)(3) Revenue (INR m) (1)(2)(3) 6,556.8 6,214.7 130.9 138.5 179.8 3.8 187.3 457.0 4.0 384.4 9.7 4,589.9 95.0 8.0 4,106.9 93.8 1,868.0 190.5 1,712.0 39.4 2.0 3.9 36.1 89.9 334.4 5.9 6.9 259.0 1,067.0 21.1 22.1 923.0 3,931.0 4,052.0 82.8 85.6 64.8 2,
Slide 6: Stable Portfolio and Growth
Stable Portfolio and Growth Solid Portfolio Characteristics Consistent Growth in Operational Beds Since Listing Number of Operational Beds ARPOB (INR m) Occupancy rate(3) 3Q FY14(1) 10.23 78% 1% 4Q FY14(1) 10.72 73% 16% 2,607 2,645 32% 1Q FY15(2) 12.31 74% 2,252 3,166 3,216 1,706 2Q FY15(2) 12.66 74
Slide 7: Portfolio
Portfolio
Slide 8: RHT – 18 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 Bed Capacity 200 Operational Beds Investment mandate to invest in medical 350 Installed Bed Capacity and healthcare assets and service
Slide 9: Diversified Portfolio of Quality Assets
Diversified Portfolio of Quality Assets RHT’s assets are spread across India with increasing income generated Strong Revenue Increases in RHT Clinical Establishments (INR m) Stable Occupancy in RHT Clinical Establishments FY15 FY16 FY15 FY16 18% 6% 4% 5% 2% 1% 3% 10% 8% 4,130 3,850 3,970 3,500 79% 7
Slide 10: 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 Stability from Base Fee Component Income-generating Assets Account Sub
Slide 11: In-built Capacity for Expansion within Existing Portfolio
In-built Capacity for Expansion within Existing Portfolio Current Operational Bed Current Installed Bed Potential Bed Capacity Hospitals Capacity Capacity (ex. Greenfield CEs) Amritsar 153 166 89 Anandpur, Kolkata 193 373 BG Road, Bengaluru 255 258 197 Gurgaon 284 450 550 Faridabad 210 210 Jaipur 24
Slide 12: Development Project Pipeline
Development Project Pipeline Ludhiana Greenfield CE BG Road Brownfield CE Estimated Time of Completion FY 2017 FY 2017 No. of Beds Planned 79 200 Specialties Mother & Child Programmes Oncology, Operating Theatre Civil Cost INR 775.8 m (S$16.0 m) INR 1,300.1m (S$26.8 m) Expansion of Mohali CE Estimat
Slide 13: Capacity Enhancement Initiatives Underway
Capacity Enhancement Initiatives Underway Jaipur CE Mulund CE Nagarbhavi CE Estimated Time of Completion FY 2017 FY 2018 FY 2017 No. of Additional Beds Planned 40 50 60 Mother and Child Health programme, Addition of 2 operating theatres and a cath Rationale Mother and Child Health programme Orthoped
Slide 14: Financials
Financials
Slide 15: Financial Highlights
Financial Highlights Strong growth in revenue, income, and EBITDA witnessed in recent years Gross Revenue(1)(2)(3) Net Service Fee and Margin(1)(2)(3)(6) (Operations) S$m 63.5 62.4 91.5 6 93.6 S$m 110.5 106.9 136.0 143.0 9 . (INRm) 8 Margin (%) (INRm) 4,864 5,161 6,449 6,769 5,000 70.0 75.0 67.6 4,5
Slide 16: Review of 4Q FY16 Performance
Review of 4Q FY16 Performance Actual 4Q FY15 against 4Q FY16 Actual 4Q Actual 4Q Actual 4Q Variance Actual 4Q FY15 Variance (y-o-y) FY15 FY16 FY16 S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 34,803 33,817 (2.8) 1,589,541 1,641,315 3.3 Net Service Fee and Hospital Income 24,097 23,272 (3.4) 1,09
Slide 17: Review of FY16 Full Year Performance
Review of FY16 Full Year Performance FY15 YTD against FY16 YTD FY15 YTD FY16 YTD Variance FY15 YTD FY16 YTD Variance (y-o-y) S$’000 S$’000 % INR’000 INR’000 % Total Revenue^ 130,590 138,447 6.0 6,189,120 6,556,651 5.9 Net Service Fee and Hospital Income 91,561 93,612 2.2 4,338,714 4,433,325 2.2 Dist
Slide 18: Financial Results for 4Q FY16
Financial Results for 4Q FY16 For the quarter ended 31 March 2016 4Q FY16 4Q FY15 Variance S$ ‘000 S$ ‘000 % Revenue: Service fee 31,764 32,827 (3) Hospital income 2,067 2,248 (8) Other income 1,071 629 70 Total revenue 34,902 35,704 (2) Total service fee and hospital expenses (14,895) (13,048) 14 F
Slide 19: Financial Results for 4Q FY16
Financial Results for 4Q FY16 For the quarter ended 31 March 2016 4Q FY16 4Q FY15 S$ ‘000 S$ ‘000 Reconciliation to Unitholders’ Distribution Net profit for the period attributable to unitholders of the Trust 8,959 10,431 Distribution adjustments: Impact of non-cash straight-lining (1,085) (1,399) T
Slide 20: Financial Results for FY16 YTD
Financial Results for FY16 YTD FY16 YTD FY15 YTD Variance S$ ‘000 S$ ‘000 % Revenue: Service fee 129,475 124,382 4 Hospital income 9,649 8,107 19 Other income 3,796 3,953 (4) Total revenue 142,920 136,442 5 Total service fee and hospital expenses (61,179) (58,114) 5 Finance income 623 714 (13) Finan
Slide 21: Financial Results for FY16 YTD
Financial Results for FY16 YTD FY16 YTD FY15 YTD S$ ‘000 S$ ‘000 Reconciliation to Unitholders’ Distribution Net profit for the period attributable to unitholders of the Trust 43,476 37,423 Distribution adjustments: Impact of non-cash straight-lining (4,472) (5,451) Technology renewal fee (699) (694
Slide 22: Balance Sheet
Balance Sheet (S$ ‘000) 31 Mar 16 31 Mar 15 Intangibles 127,986 140,514 PPE 844,851 823,597 Other long term assets 66,841 61,397 Long term liabilities (313,541) (196,915) Net current assets/(liabilities) 13,471 (59,460) Total net assets attributable to unitholders 739,608 769,133 Converted at an exc
Slide 23: Hedging - Foreign currency exposure
Hedging - Foreign currency exposure Particulars Minimum Hedging (percentage to total exposure) Indian rupee-denominated cashflows receivable from India are 100% (on a 6 month rolling basis) hedged a year forward RHT has hedged the following foreign exchange exposures Contracted rate Settlement INR 5
Slide 24: 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 Extremely Conservative Capital Structure Healthy Interest Coverage Ratio
Slide 25: RHT Distribution Policy
RHT Distribution Policy Our distribution policy provides for distribution of at least 90% of the Distributable Income Currently, the TM distributes 100% of the Distributable Income For FY2017, RHT TM intends to distribute 95% of its Distributable Income The 5% retained will be used to fund f
Slide 26: Proposed FHTL Transaction
Proposed FHTL Transaction
Slide 27: Proposed Transaction
Proposed Transaction RHT currently owns 49% of the equity shares (and 100% economic interest) in Fortis Hospotel Ltd (FHTL) which owns Gurgaon Clinical Establishment and the Shalimar Bagh Clinical Establishment with the balance 51% to be transferred post approvals from local regulatory RHT now p
Slide 28: Proposed Transaction
Proposed Transaction RHT’s credit profile will continue to be robust – Pro Forma TD / TA ratio is 0.22 as against the bond covenant of 0.40:1.00 – Pro Forma Interest Coverage Ratio of 5.38 as against bond covenant of 3:1 – The Total Debt includes Optionally Convertible Debenture (OCD) liability to
Slide 29: FHTL's Contribution to RHT Portfolio
FHTL’s Contribution to RHT Portfolio % Valuation of FHTL in comparison to RHT Portfolio (1) % Revenue of FHTL in comparison to RHT Portfolio(2) Before Proposed Disposal Before Proposed Disposal (INR m) Shalimar Bagh Shalimar Bagh 12% 13% 863.6 Others Gurgaon 54% Gurgaon 23% Others 34% 64% 1,492.7 4,
Slide 30: Appendix
Appendix
Slide 31: Unit Price Performance Against Peers
Unit Price Performance Against Peers For the quarter 1 January to 31 March 2016 Name Open Close Change (%) Religare Health Trust 0.99 0.98 (1.01) Ascendas India Trust 0.86 0.875 1.74 Parkway Life REIT 2.30 2.39 3.91 First REIT 1.195 1.23 2.93 Source: Bloomberg 31
Slide 32: Key Highlights of RHT's CEs
Key Highlights of RHT’s CEs Gurgaon CE Gurgaon CE has performed its 100th Bone Marrow Transplant in less than three years of becoming operational Performed its 100th kidney transplant on 12 March 2016 Mohali CE Two doctors at the Mohali CE have received awards at the 6th MT India Healthcare Aw
Slide 33: Awards & Accolades
Awards & Accolades RHT featured as one of “Asia’s Top 50 Healthcare Providers” by Frost and Sullivan Jaipur CE - Six Sigma Healthcare Excellence Awards – 2013 ‘Best Hospital in Patient Care, Best Hospital in Patient Safety and Best Hospital in Quality Initiatives - Recognised as the ‘India’s Top Hos
Slide 34: Awards & Accolades
Awards & Accolades Mulund CE - Received JCI Accreditation 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 prestigious Asian Hospital Management A
Slide 35: Awards & Accolades
Awards & Accolades Nagarbhavi CE - National Energy Conservation Award Noida CE - Won ‘Comprehensive Neurosciences Service Provider of the Year’ award at Frost and Sullivan’s 7th Annual India Healthcare Excellence Awards 2015 - National Energy Conservation Award Mohali CE - JCI Accreditation - FICCI
Slide 36: 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 37: For further information please contact
For further information please contact: Tan Suan Hui Head of Compliance and Investor Relations Religare Health Trust Trustee Manager Pte. Ltd 302 Orchard Road #18-02/03 Tong Building Singapore 238862 Email: suanhui.tan@rhealthtrust.com www.rhealthtrust.com 37