Rajthanee Hospital Public Company Limited · SET:RJH
Rajthanee Hospital Public — 9M 2016 Earnings Presentation
47 slides from Rajthanee Hospital Public's earnings presentation, Dec 1, 2016
Slide 1: Analyst Presentation: 1 December 2016
Analyst Presentation: 1 December 2016
Slide 2: Disclaimer
Strictly Private & Confidential Disclaimer • The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Rajthanee Hospital Public Company Li
Slide 3: Agenda
Strictly Private & Confidential Agenda Page 1. Executive Summary 4 2. Business Overview 6 3. Financial Performance 19 4. Investment in Rajthanee Rojana Hospital 36 5. Investment Highlights & Future Projects 42 3
Slide 4: 1. Executive Summary
Strictly Private & Confidential 1. Executive Summary 4
Slide 5: Executive Summary
Strictly Private & Confidential Executive Summary Our History Rajthanee Hospital Public Company Limited (“RJH”) was established in 1990 and commenced its operations in 1992 under the management of experienced physicians. Most of which graduated from Siriraj Medical School and are currently major sha
Slide 6: 2. Business Overview
Strictly Private & Confidential 2. Business Overview 6
Slide 7: Company Background & Major Events
Strictly Private & Confidential Company Background & Major Events Year Description 1990 Established Ayutthaya Vechakarn Company Limited 1992 Commenced the business operations on 29 June 1992 with 33 beds in service 1995 Converted into public company and changed the company name to Rajthanee Hospital
Slide 8: Business Characteristics
Strictly Private & Confidential Business Characteristics Rajthanee Hospital Rajthanee Rojana Hospital Rajthanee Hospital Public Company Limited Rajthanee Rojana Hospital Company Limited (RJH) (RRH) Registered hospital beds 253 beds Registered hospital beds 100 beds Beds in service 161 beds Beds in s
Slide 9: Location and Health Service Coverage
Strictly Private & Confidential Location and Health Service Coverage Rajthanee Hospital Rajthanee Rojana Hospital Approximately 7 km. from Rajthanee Hospital 9
Slide 10: Healthcare Industry Outlook in Ayutthaya
Strictly Private & Confidential Healthcare Industry Outlook in Ayutthaya Gross Provincial Product (GPP) Proportion of Elderly Citizens in Ayutthaya Healthcare Sector (Unit : THB Million) 100% 3,500 CAGR 7.96% 14.0% 14.4% 15.4% 15.9% 16.2% 2,912 2,968 3,000 2,870 80% 2,488 2,500 2,185 60% > 60 yrs 2,
Slide 11: Competitive Landscape
Strictly Private & Confidential Competitive Landscape Ayutthaya Province: • High growth prospect for hospital business • Large population and economy with increasing healthcare spending • Locations of major industrial estates and industrial parks: • 3 industrial estates: Ban Wa (Hi-Tech) Industrial
Slide 12: Our Excellence Medical Centers
Strictly Private & Confidential Our Excellence Medical Centers • Regular road accidents take place on the main roads, Emergency & namely Asian Highway and Rojana Road Neurosurgery • Facilitating the patients and dispatching ambulances to the Center scenes of the accidents in a timely manner • Medica
Slide 13: Scope of Our Medical Services
Strictly Private & Confidential Scope of Our Medical Services The Complete Scope of Medical Services • Medicine • Surgery and Orthopedics • Pediatrics • Obstetrics and gynecology • Otolaryngology • Ophthalmology • Anesthesiology • Radiology • Dentistry 13
Slide 14: Scope of Our Medical Services
Strictly Private & Confidential Scope of Our Medical Services No Medical Services RJH RRH No. Medical Services RJH RRH . 1 Heart center 5 Internal Medicine clinic: 2 Emergency medicine and - Internal medicine clinic neurosurgery center - Gastroenterology 3 Centers of specialties: - Dermato
Slide 15: Organization Chart
Strictly Private & Confidential Organization Chart Board of Directors Executive Committee Audit Committee Internal Audit Department Managing Director Hospital Director Deputy Hospital Director Deputy Hospital Director (Medical Services) (Management) Assistant Hospital Assistant Hospital Assistant Ho
Slide 16: Audit Committee (AC)
Strictly Private & Confidential Board of Directors Chairman / Chairman of the AC / Audit Committee Member / Audit Committee Member / Audit Committee (AC) Independent Director Independent Director Independent Director Ms. Vilailak Aunyamaneerat Mr. Sarun Supaksaran Mr. Teerasak Naranong Managing Dire
Slide 17: Executive Committee & Management Team
Strictly Private & Confidential Executive Committee & Management Team Executive Committee (“Excom”) Chairman of Excom Member of Excom Member of Excom Member of Excom Dr. Wachira Wudhikulprapan Dr. Porntip Wudhikulprapan Dr. Noppadol Noppakun Dr. Surin Prasithirun Member of Excom Dr. Wachira Wudhikul
Slide 18: Shareholding Structure
Strictly Private & Confidential Shareholding Structure Vibharam Hospital Thonburi Healthcare Group Wudhikulprapan Prasithirun Others Company Limited Public Company Limited Group Group 7.94% 7.07% 11.05% 24.64% 49.30% Rajthanee Hospital Others Public Company Limited 17.39% 8.70% 53.93% 2.41% 3.70% 13
Slide 19: 3. Financial Performance
Strictly Private & Confidential 3. Financial Performance 19
Slide 20: Revenue Structure Q3 2016
Strictly Private & Confidential Revenue Structure Q3 ‘2016 Revenue Structure (Unit : THB million) Source of Revenue Q3’2016 CAGR 13% 1200.0 4.35% 1000.0 800.0 26.23% Out-Patients (OPD) 600.0 +23.8% 43.63% In-Patients (IPD) 400.0 25.79% Social Security Scheme Other Schemes 200.0 0.0 2013 2014 2015 Q3
Slide 21: Performance Summary for Q3'2015 vs Q3'2016
Strictly Private & Confidential Performance Summary for Q3’2015 vs Q3’2016 Revenue Breakdown: Q3’2015 vs Q3’2016 +23.8% 350.0 317.7 300.0 256.6 250.0 23.2% 200.0 22.9% 24.3% 150.0 138.6 Q3 2015 112.5 Q3 2016 83.3 81.9 32.7% 100.0 67.8 65.9 50.0 10.4 13.8 - Out-Patients In-Patients (IPD) Social Secur
Slide 22: Company's Performance Summary Q3'2016
Strictly Private & Confidential Company’s Performance Summary Q3’2016 Revenue from Hospital Operations Cost of Hospital Operations (Unit: THB Million) (Unit: THB Million) 350.0 0.0 317.7 300.0 256.6 +23.8% -100.0 +11.5% 250.0 200.0 -200.0 -200.0 150.0 -223.0 100.0 -300.0 50.0 -400.0 0.0 Q3 2015 Q3 2
Slide 23: Revenue Structure 9M 2016
Strictly Private & Confidential Revenue Structure 9M 2016 Revenue Structure (Unit : THB Million) Source of Revenue 9M 2016 CAGR 13% 1200.0 +17.9% 5.31% 1000.0 25.40% Out-Patients (OPD) 800.0 In-Patients (IPD) 600.0 45.56% 23.73% 400.0 Social Security Scheme 200.0 Other Schemes 0.0 2013 2014 2015 9M
Slide 24: Performance Summary for 9M 2015 vs 9M 2016
Strictly Private & Confidential Performance Summary for 9M 2015 vs 9M 2016 Revenue Breakdown: 9M 2015 vs 9M 2016 (Unit: THB Million) +17.9% 1,000.0 9M 2015 893.1 900.0 9M 2016 757.6 Revenue from hospital operations of 9M 800.0 2016 grew y-o-y in all sectors. 700.0 +21.5% 600.0 12.5% growth in revenu
Slide 25: Company's Performance Summary 9M 2016
Strictly Private & Confidential Company’s Performance Summary 9M 2016 Revenue from Hospital Operations Cost of Hospital Operations (Unit: THB Million) (Unit: THB Million) CAGR 13% 1100.0 -300.0 1024.3 +17.9% 949.1 893.1 -500.0 900.0 802.3 -572.1 -595.4 757.6 -700.0 -640.3 -722.3 +7.54% 700.0 -900.0
Slide 26: Profitability Ratio 9M 2016
Strictly Private & Confidential Profitability Ratio 9M 2016 Gross Profit (Unit: THB Million) and Gross Profit Margin 350.0 35.0% 28.7% 28.3% 30.0% Decline in NPM during 2014-2015: 300.0 23.9% •Corporate income tax inclined since 252.9 25.0% the expiry of the tax benefits conferred 250.0 230.2 226.8
Slide 27: Utilization Rate 9M 2016 - OPD
Strictly Private & Confidential Utilization Rate 9M 2016 - OPD OPD Visits Max. Capacity for OPD (Visits) Actual OPD Visits Utilization (%) No. of Period Exam. 1,000,000 84.4 90.0 Rooms 83.0 78.9 2013 42 75.4 80.0 900,000 2014 43 64.6 70.0 2015 44 803,000 784,750 9M 2016 51 800,000 766,500 60.0 698,7
Slide 28: Utilization Rate 9M 2016 - IPD
Strictly Private & Confidential Utilization Rate 9M 2016 - IPD IPD Beds Max. Capacity for IPD patients (Beds) Actual IPD Patients (Beds) Utilization (%) No. of Period Beds in 75,000 90.0 Service 81.5 78.7 77.6 77.6 2013 146 70,000 80.0 71.7 2014 156 65,000 60,955 70.0 2015 167 60,000 9M 2016 185 56,
Slide 29: Non-Capitation Patients - OPD
Strictly Private & Confidential Non-Capitation Patients - OPD Revenue from Non-capitation Patients - OPD (Unit: THB Million) CAGR 15.2% 350.0 +6.0% 300.0 286.0 270.7 250.0 215.4 214.0 226.9 200.0 150.0 100.0 50.0 0.0 2013 2014 2015 9M 2015 9M 2016 Number of OPD Visits (Unit: Visits) Revenue per OPD
Slide 30: Non-Capitation Patients - IPD
Strictly Private & Confidential Non-Capitation Patients - IPD Revenue from Non-capitation Patients - IPD (Unit: THB Million) CAGR 10.2% +20.5% 300.0 240.6 250.0 223.6 212.0 198.0 200.0 175.9 150.0 100.0 50.0 0.0 2013 2014 2015 9M 2015 9M 2016 Average Admissions per Day Revenue per Admission (Unit: H
Slide 31: Capitation Patients – Social Security Scheme
Strictly Private & Confidential Capitation Patients – Social Security Scheme Revenue from Capitation Patients – Social Security Scheme (Unit: THB Million) CAGR 12.4% +21.5% 500.0 455.6 413.6 406.9 400.0 360.7 334.8 300.0 200.0 100.0 0.0 2013 2014 2015 9M 2015 9M 2016 Revenue per Average Social Cover
Slide 32: Revenue Structure under Social Security Scheme
Strictly Private & Confidential Revenue Structure under Social Security Scheme Revenue Structure 1 2 3 Per Special Fixed Capitation Payment Statistics-based Payment Medical Services Base Payment (Fixed) All IPD OPD only 26 IPD OPD 1,460 THB / Head / Year Chronic Diseases AdjRW > 2 AdjRW < 2 (10%) (9
Slide 33: Service Payments for Social Security Scheme
Strictly Private & Confidential Service Payments for Social Security Scheme Payment type 2013 2014 2015 1. Fixed Capitation Payment (THB/Head/Year) 1,446 1,460 1,460 Additional Payments 2. HA Accredited Hospital HA Level 1: 0 HA Level 1: 0 HA Level 1: 0 Payment (THB/head/year) RJH was HA Level 2: 40
Slide 34: Capital Structure
Strictly Private & Confidential Capital Structure Capital Structure As at 31 December 2015 As at 30 September 2016 3% 15% 8% 26% 7% 2% OD & ST Loan 17% AP 3% LT Loan Others 80% 39% Equity Debt to Equity Ratio (Unit: Times) 3.5 3.1 2.9 3.1 D/E ratio reduced to 0.3 times. 3.0 2.5 • The post-IPO shareh
Slide 35: Financial Ratios
Strictly Private & Confidential Financial Ratios 2013 2014 2015 9M 2015 9M 2016 Gross Profit Margin (%) 28.7 23.9 21.6 21.4 28.3 EBITDA (% to Revenues) 25.3 20.8 18.9 18.3 24.0 Net profit Margin (%) 18.7 10.5 7.7 5.7 13.0 EPS (THB) 15.96 0.44 0.35 0.24 0.51 ROA (%) 25.5 9.7 5.8 5.1 10.5 ROE (%) 50.4
Slide 36: 4. Investment in Rajthanee Rojana Hospital
Strictly Private & Confidential 4. Investment in Rajthanee Rojana Hospital 36
Slide 37: Investment in Rajthanee Rojana Hospital
Strictly Private & Confidential Investment in Rajthanee Rojana Hospital In 2014, RJH acquired 12 million shares in Rojanavej Hospital Company Limited (subsequently renamed Rajthanee Rojana Hospital Company Limited) from the existing shareholders, at THB 10.50 per share. The post- acquisition shareho
Slide 38: Revenue Structure 9M 2016
Strictly Private & Confidential Revenue Structure 9M 2016 Revenue Structure (Unit : THB Million) Source of Revenue 9M 2016 150.0 1.62% 125.0 +77.2% +70.0% 100.0 28.24% Out-Patients (OPD) 75.0 52.76% In-Patients (IPD) 17.39% Social Security Scheme 50.0 Other Schemes 25.0 0.0 2014 2015 9M 2015 9M 2016
Slide 39: Performance Summary for 9M 2015 vs 9M 2016
Strictly Private & Confidential Performance Summary for 9M 2015 vs 9M 2016 Revenue Breakdown: 9M 2015 vs 9M 2016 (Unit: THB Million) 120.0 112.0 100.0 +70.0% 80.0 +73.3% 65.9 59.1 60.0 9M 2015 +56.4% 9M 2016 40.0 34.1 +81.0% 31.6 19.5 20.2 +100.0% 20.0 10.8 0.9 1.8 - Out-Patients (OPD) In-Patients (
Slide 40: Performance of Rajthanee Rojana Hospital
Strictly Private & Confidential Performance of Rajthanee Rojana Hospital Revenue from Hospital Operations Cost of Hospital Operations (Unit: THB Million) (Unit: THB Million) 120.0 +70.0% 112.0 0.0 100.0 +77.2% 92.3 -20.0 +29.0% 80.0 -40.0 65.9 60.0 52.1 -60.0 -80.0 -68.0 40.0 -77.2 -100.0 -87.7 20.0
Slide 41: Static Data of Rajthanee Rojana Hospital
Strictly Private & Confidential Static Data of Rajthanee Rojana Hospital Medical Service Statistics Unit 2013 2014 2015 9M 2015 9M 2016 Number of social coverage patients Person 8,304 10,600 10,087 10,200 9,889 (average) Number of examination rooms Room 4 5 6 6 6 (average) Actual number of out-patie
Slide 42: 5. Investment Highlights & Future Projects
Strictly Private & Confidential 5. Investment Highlights Future Projects 42
Slide 43: Investment Highlights
Strictly Private & Confidential Investment Highlights Leading Hospital in RJH is the leading hospital in terms of number of registered hospital beds, reputable medical staff and Ayutthaya and medical competency and is located in the prime area of Ayutthaya, surrounding by 5 major industrial South-Ce
Slide 44: Future Projects (IPO Proceeds)
Strictly Private & Confidential Future Projects (IPO Proceeds) Projects Capital Expected Description Expenditure Completion MRI Center Approx. Early 2018 • To be the 1st MRI center in Ayutthaya THB 20 M • Partnering with an MRI company with extensive experience in MRI (RJH) market in the upcountry •
Slide 45: Future Projects (Non-IPO-Proceeds)
Strictly Private & Confidential Future Projects (Non-IPO-Proceeds) Projects Capital Expected Description Expenditure Completion Capacity Expansion Approx. 3Q 2017 • Renovation of an IPD ward THB 15 M • Adding up to 23 patient beds (RJH) Hemodialysis Approx. Early 2019 • Expansion from 27 to 40 units
Slide 46: Q&A
Strictly Private & Confidential Q&A 46
Slide 47: Thank You
Strictly Private & Confidential Thank You Rajthanee Hospital Public Company Limited 111 Moo 3, Rojana Road, Klongsuanplu Sub-district, Phra Nakorn Sri Ayutthaya District Phra Nakorn Sri Ayutthaya Province, Thailand 13000 Tel: (+66) 3533-5555-71 For further information & enquiries, please contact our
Rajthanee Hospital Public Company — 9M 2016 Earnings Presentation on 6ix