IHH Investor Presentation May 2014

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1 IHH Investor Presentation May 2014

2 General Overview

3 Quick Facts World s second-largest private healthcare provider by market cap IHH Healthcare Berhad (IHH) is a leading international provider of healthcare services Listed concurrently on 25 Jul 2012 on Bursa Malaysia ( 5225 ) and Singapore Exchange ( QOF ) Market capitalization of over RM30bil (US$10bil) as at 30 th May 2014 Strong track record and experienced management team Backed by two reputable major shareholders Khazanah 45% Mitsui 20% 2

Macedonia Iraq Singapore Malaysia India PRC / Hong Kong Home Markets Other Markets Key Markets Brunei / Vietnam / UAE Other Business and Equity Interests 1.

4 Our Operations The only true pan-asian outfit with brand supremacy across all markets Unrivalled scale across growth markets 6,000+ licensed beds in 37hospitals 1 3,000+ new beds capacity in 19 hospitals 2 in the pipeline 25,000+ employees Medical centres, clinic, ancillary healthcare businesses (including Centres of Excellence) & medical education Turkey Macedonia Iraq Singapore Malaysia India PRC / Hong Kong Home Markets Other Markets Key Markets Brunei / Vietnam / UAE Other Business and Equity Interests 1. Includes hospitals that are owned and managed, and those that are managed under HMA 2. Includes expansion of existing hospitals, new hospitals that are own and managed, and those managed under HMA 3

5 Our Business Leader in our home markets Home Market: Singapore Home Market: Malaysia Largest private healthcare provider Owns and operates 4 hospitals (all are JCI accredited) Hospital brands: Mount Elizabeth, Gleneagles and Parkway East 44% market share 900+ beds (licensed) Operates Parkway Shenton clinics, Medi-Rad Associates clinics, Parkway Labs Runs Parkway College comprising 3 schools (Nursing, Allied Healthcare and Healthcare Management) 2 nd largest private healthcare provider Owns and operates 12 hospitals (2 are JCI accredited ; 9 accredited by MSQH) Hospital brands: Pantai and Gleneagles 2 more hospitals under development 15% market share beds (licensed) Operates Pantai Premier Pathology, Pantai Integrated Rehab and one ambulatory care centre Runs IMU (Malaysia s leading private healthcare university) and Pantai College (trains nurses and allied health professionals) No. of new hospitals: 2; No. of hospital expansions: 3 No. of new beds capacity: 700+ by

6 Our Business Leader in our home markets Home Market: Turkey Key Markets Largestprivate healthcare provider of premium services 17 hospitals including 1 each in Macedonia and Iraq(7 are JCI accredited) 2,000+ beds (licensed) 14 outpatient medical centresthat act as feeders into hospital network Ancillary services: clinical lab, emergency transport, home health services, turnkey project management for hospital planning and development No. of new hospitals: 4 No. of hospital expansions: 3 No. of new beds capacity: 900+ by 2016 India PRC/HK Vietnam/Brunei 10.9% stake in Apollo Hospitals (largest private healthcare provider, 8,200+ beds across 51 hospitals) 1 hospital JV No. of new hospital: 1 JV (under construction) Major foreign-owned private healthcare operator with 6 clinics in Shanghai, 2 in Suzhou, 1 in Chengdu, 1 in Beijing, & 1 flagship medical centre in Hong Kong 1 Hospital Management Agreement (HMA) in Shanghai No. of new hospitals: 1; No. of new beds capacity: 800+ by 2017 Consultancy agreement and HMA to manage multi-specialty hospital in Ho Chi Minh City, Vietnam 1 cardiac centrejv in Brunei 5

7 Our full service offering An integrated, comprehensive suite of services Quaternary Centres of Excellence and Clinical Programmes Cancer Centre / Institute Cardiac Centre / Programme Haematology and Stem Cell Transplant Centre Eye Centre Women s and Children Centre Neuroscience Centre Orthopaedic Centre Transplant Programme Tertiary and Secondary 4 hospitals 12 hospitals 17 hospitals (including 1 each in Macedonia & Iraq) Primary Parkway Shenton (c.60 clinics) Twin Towers Medical Clinic 14 medical centres Complementary ancillary services 6

Award 2013 Best Healthcare Experience: Mount Elizabeth Hospitals Singapore Service Excellence 2013 Best

Gleneagles KL & Pantai Hospital KL Superbrands in Turkey, 2010 Most Admired Turkish Companies, 2010

1 Mount Elizabeth Hospital (Singapore) No. 2 Gleneagles Hospital (Singapore) No.

8 Our Brand Supremacy Accreditations as testament of outstanding patient outcomes Singapore (4 JCI accredited hospitals) Malaysia (2 JCI accredited hospitals) Turkey (7 JCI accredited hospitals) Singapore Experience Award 2013 Best Healthcare Experience: Mount Elizabeth Hospitals Singapore Service Excellence 2013 Best Customer Experience: Mount Elizabeth (Orchard) Reader s Digest Trust Brands Gold Award Private Hospital, 2011: Gleneagles KL & Pantai Hospital KL Superbrands in Turkey, 2010 Most Admired Turkish Companies, 2010 Superbrands in Singapore, : Mount Elizabeth and Gleneagles Hospitals Superbrands in Malaysia, 2009: Pantai Hospitals Most Valuable Turkish Brands, 2010 Most Widely Known Healthcare Brand, Millward Brown 2011 Brand Survey (1) Private Hospital Ranking by Medical Expertise: No. 1 Mount Elizabeth Hospital (Singapore) No. 2 Gleneagles Hospital (Singapore) No. 1 Pantai Hospitals (Malaysia) Referans Fastest Fish Award, 2006 Best Healthcare Group in Western Europe, 2011 Recognised for performing advanced clinical procedures including living-donor organ transplants 7

Deal/Best IPO (Asia) Best Deal (Malaysia) Best IPO 2012 Malaysia Capital Markets Deal of the Year Best

companies on Bursa s Main Market FTSE Straits Times Index Top 30 companies on Singapore Exchange s Mainboard

9 Our Brand Supremacy Growing recognition for corporate strength & excellence 9 Awards in 2012 Component of 6 Major Equity Indices Most Transparent Company New Issue Best IPO Best Malaysia Deal Best Equity Deal/Best IPO (Asia) Best Deal (Malaysia) Best IPO 2012 Malaysia Capital Markets Deal of the Year Best Dual-Listed IPO of the Year (2012) Best Equity Deal of the Year (2012) FTSE Bursa Malaysia KLCI Top 30 companies on Bursa s Main Market FTSE Straits Times Index Top 30 companies on Singapore Exchange s Mainboard FTSE All-World Index (Large Cap) FTSE All-Emerging Index FTSE Global Style Index MSCI Global Standard Indices (Large Cap) 8

value for our shareholders 1 4 Strengthen Leadership in Home Markets 2 Expand Further in Asia

10 Our Roadmap ahead Clear growth strategy We aim to strengthen and expand our leading market positions, continuously improve the quality of our healthcare services and deliver long-term value for our shareholders 1 4 Strengthen Leadership in Home Markets 2 Expand Further in Asia and CEEMENA Continue to Capture Growth in Medical Travel 3 Realise Synergies to Enhance Profitability 9

11 1Q FY2014 Financial Updates

12 Inpatient volumes and revenue intensity grew strongly against last year Inpatient Admission Volumes 1 (Number) Q1 YoY Growth 6.4% Q1 YoY Growth 9.3% Q1 YoY Growth 5.9% Average Revenue per Inpatient Admission 1 (RM) Q1 YoY Growth 7.6% Q1 YoY Growth 8.5% Q1 YoY Growth 8.2% 1. Based on Singapore, Malaysia and Acibadem Holdings hospitals only. International hospitals not included. 2. Specialist fees not included in Singapore and Malaysia but included in Acibadem Holdings average revenue per inpatient admission 3. Based on a uniform exchange rate throughout the periods shown (SGD: ; TL: ) 11

13 Project Progress Malaysia Type Hospital Description Target Completion Expansion Project Pantai Hospital Kuala Lumpur Phase 1: 200 consultant suites, 8 COEs Phase 2: 120 beds capacity Planning stage: Phase 1: End 2014 Phase 2: Planning stage Expansion Project Pantai Hospital Klang 80 beds capacity Planning stage Target Completion: Early 2016 Expansion Project Gleneagles Kuala Lumpur 100 beds capacity Under construction Target Completion: End 2014 Greenfield Project Pantai Hospital Manjung 100 beds capacity Opened on 19 May 2014 Greenfield Project Gleneagles Kota Kinabalu 250 beds capacity Under construction Target Completion: Early 2015 Greenfield Project Gleneagles Medini Phase 1a: 150 bed capacity Under construction Target Completion of Phase 1a: Early

14 Project Progress International Type Hospital Description Target Completion Consultancy Agreement, HMA China Shanghai International Medical Centre 450 bed capacity Construction completed Hospital opening in phases Consultancy Agreement, HMA Abu Dhabi, UAE Danat Al Emarat Hospital 126 bed capacity Under construction Target Completion: End % JV Greenfield Project India Gleneagles Khubchandani, Mumbai 450 bed capacity Under Construction Target Completion: End % JV Greenfield Project Hong Kong Gleneagles Hong Kong Hospital 500 bed capacity Design & Tender Documentation stage. Target Completion: End

15 Project Progress Turkey Type Hospital Description Target Completion Expansion Project Acibadem Bodrum Phase 2: 110 beds capacity, 4 OTs Under Construction Target completion: Late 2014 Expansion Project Acibadem Sistina Skopje 81 beds capacity and an Oncology Dept Exterior construction completed Target completion: 2 nd half 2014 Expansion Project Acibadem Maslak 200 beds capacity Construction to commence in 2014 Target completion: 2015 Brownfield Project Acibadem Taksim 120 inpatient beds expected Construction in progress Target construction completion date: 2015 Brownfield Project Acibadem Atakent 300+ operational beds and 8OTs Opened on 2nd Jan

16 Project Progress Malaysia Type Hospital Description Target Completion Greenfield Project Acibadem Altunizade Located in Istanbul Expected: 250+ bed capacity Construction to commence in 2014 Target Completion: 2015 Greenfield Project Acibadem Kartal Located in Istanbul Expected: 120 bed capacity Project under evaluation and related discussions are ongoing Greenfield Project Acibadem Atasehir Located in Istanbul Expected: 180 bed capacity Project under evaluation and related discussions are ongoing 15

17 Key Group Highlights (Excluding PLife REIT s results) Revenue & EBITDA grew +8% and 11% respectively vs Q1 last year PATMI (Excl EI) +35% vs Q1 last year Robust performance driven by volume and revenue intensity Mount Elizabeth Novena Hospital, Acibadem Ankara Hospital and Acibadem Bodrum Hospital continues to ramp up their operations since their opening in FY2012 compared to significant startup costs incurred in Q Acibadem Atakent Hospital was opened on 2 January 2014 Operating leverage reaped from higher patient volumes as well as from the Group s expanding operations PATMI(Excl EI) growth driven by: - Double-digit EBITDA growth Offset by: - incremental depreciation and finance cost relating to new hospitals which had to be recognised in the P&L after completion Benefits of diversification with strong Singapore Dollar offsetting weak Turkish Lira on translation of subsidiary group s income statements* and balance sheets - Group Revenue and EBITDA growth eroded by the weak Turkish Lira - However, effect on PATMI minimal - Net foreign currency translation gains recognised in the Group s other comprehensive income- boosted by the strong Singapore Dollar when translating the balance sheets of the Group s Singapore operations *: Key average exchange rates used to translate the YTD results of significant overseas subsidiaries into RM: 31 Mar Mar Singapore Dollar Turkish Lira

18 IHH Group achieved double-digit EBITDA and PATMI (excluding exceptional items) growth over last year YTD Mar RM'mil Variance Revenue 1, , % EBITDA % EBITDA Margin (%) 24.8% 24.3% 0.6% PATMI % PATMI Margin (%) 9.0% 7.8% 1.2% PATMI Total Group Results (Excluding exceptional items 1 ) % PATMI Margin (%) (Excluding exceptional items 1 ) 9.8% 8.1% 1.7% 1: Exceptional items, net of tax and minority share 17

19 Excluding the contribution from PLife REIT, PATMI (excluding exceptional items) improved further Excluding PLife REIT s Results YTD Mar RM'mil Variance Revenue 1, , % EBITDA % EBITDA Margin (%) 22.2% 21.7% 0.5% PATMI % PATMI Margin (%) 8.5% 7.1% 1.4% PATMI (Excluding exceptional items 1 ) % PATMI Margin (%) (Excluding exceptional items 1 ) 9.2% 7.4% 1.8% 1: Exceptional items, net of tax and minority share 18

20 IHH Group recorded 35% growth to its bottom-line (excluding exceptional items and PLife REIT) YTD Mar RM'mil Variance Profit after tax and minority interests % Add back/(less): Exceptional Items Professional and consultancy fees for acquisitions Write off property, plant and equipment Gain on disposal of property, plant and equipment (1.6) (0.2) Exchange loss on net borrowings Add/(less): Tax effects on exceptional items (5.7) (2.0) Add/(less): Minority interest share of exceptional items (8.5) (3.2) Profit after tax and minority interests (Excluding exceptional items 1 ) % Less: PATMI contribution from PLife REIT (12.2) (13.6) Profit after tax and minority interests (Excluding exceptional items 1 and PLIfe REIT) % Note: 1. Exceptional items, net of tax and minority share 2. Relates to exchange differences arising from foreign currency denominated borrowings/payables net of foreign currency denominated cash/receivables, recognised by Acibadem Holdings 19

21 Robust year-on-year revenue growth from existing operations Revenue (RM mil) Variances 1, % 1, , % 1, Q1'14 YTD'14 Segments GROUP vs Q4'13-1% vs YTD'13 8% GROUP (Excl REIT) -1% 8% PLife REIT 0% 14% Others -100% - IMU Health 3% 1% Acibadem Holdings (New) - - Acibadem Holdings -9% -2% PPL-International (New) - - PPL-International 1% 21% PPL-Malaysia (New) - - PPL-Malaysia 0% 11% PPL-Singapore 3% 14% PLife REIT (Intersegment) Others segment comprises of IHH Group corporate offices as well as other investment holding entities Q Q YTD 2013 YTD 2014 New Hospitals as referred to in these slides refers to: Malaysia - Pantai Hospital Manjung - Gleneagles Hospital; Medini - Gleneagles Hospital Kota Kinabalu - International - GHK Hospital IHTYL (Turkey) - AcibademHalkali/AtakentHospital - AcibademAltunizadeHospital 20

22 Healthy EBITDA growth and margin improvement vs last year driven by higher revenues and operating leverage; Partially offset by pre-operating costs of new operations Margins w/o PLife REIT Margins w/o New Hospitals & PLife REIT EBITDA (RM mil) 23.1% 22.2% 21.7% 22.2% 23.4% 23.1% 21.7% 23.1% -3% Variances Q1'14 YTD'14 Segments GROUP vs Q4'13-3% vs YTD'13 11% GROUP (Excl REIT) -5% 11% % PLife REIT 17% 11% Others -41% -23% IMU Health 42% -1% Acibadem Holdings (New) NM NM Acibadem Holdings -5% -1% PPL-International (New) -107% NM PPL-International 5% 31% PPL-Malaysia (New) -53% NM PPL-Malaysia -11% 15% PPL-Singapore 1% 31% (1.8) (2.8) (3.3) (9.9) (7.4) (10.4) Q Q (1.0) (8.5) (9.9) (10.4) YTD 2013 YTD 2014 Excluding the New Hospitals and PLifeREIT, IHH Group s EBITDA margins increased 1.4% to 23.1% in YTD 2014, contributed by operating leverage achieved by the Group s major operations: YTD'14 EBITDA Margin YTD 2013 YTD 2014 vs YTD'13 PPL-Singapore 19.1% 21.8% 2.7% PPL-Malaysia 29.5% 30.7% 1.1% PPL-International 28.9% 31.4% 2.5% Acibadem Holdings 19.7% 20.0% 0.3% IMU Health 43.0% 42.1% -0.9% 21

23 Maintained strong balance sheet Healthy net gearing ratio of 0.11 times Balance Sheet As at 31 Mar 2014 RM'mil As at 31 Dec 2013 RM'mil Total Assets 27,701 27,261 - Tangible Assets 16,195 15,752 - Intangible Assets Goodwill 8,919 8,881 Other intangibles 2,587 2,628 Total Liabilities (7,530) (7,338) Total Equity 20,171 19,923 Non-controlling Interests (1,799) (1,848) Total Shareholders' Equity (excluding non-controlling interests) 18,372 18,075 Net Tangible Assets (excluding non-controlling interests) 6,866 6,566 Total Debt (4,562) (4,461) Total Cash 2,269 2,145 Net Debt (2,293) (2,316) Net Debt / NTA Net Debt / Equity

24 Strong operating cash flows to support annual dividends and capital expenditure for expansion 31 March 2014 (RM mil) 2, ,260 Cash Reconciliation to Cashflow Statement: RM'mil Cash per Balance Sheet 2,269 Less: Cash collateral received (5) Fixed deposits pledged (4) Cash per Cashflow Statement 2,260 1/1/2014 Net cash from Operating Activities Net cash used in Investing Activities Net cash from Financing Activities Effect of FX 31/03/ Mar 2014 RM'mil Parkway Pantai 830 Acibadem Holdings 303 IMU Health 165 Others 885 2,183 PLife REIT 85 2, Mar 2014 RM'mil Parkway Pantai 1,062 Acibadem Holdings 2,061 IMU Health - Others 2 3,125 PLife REIT 1,437 4,562 23

25 Expansion Capital Expenditure Construction & Medical Equipment RM' mil Projected Disbursements* Q till 2016 Gleneagles Hong Kong Hospital 1,505.4 Gleneagles Penang (Expansion) 11.1 Pantai Hospital Kuala Lumpur (Expansion) Gleneagles Medini Gleneagles Kuala Lumpur (Expansion) 29.2 Pantai Hospital Klang 49.2 Gleneagles Kota Kinabalu 69.8 Pantai Hospital Manjung 19.3 Budgeted expenditure for approved projects Acibadem Bodrum 29.9 Acibadem Maslak (Expansion) Acibadem Taksim 75.4 Acibadem Altunizade Acibadem Atasehir Acibadem Kartal Budgeted expenditure for approved projects Total Unincurred Expansion Capital Expenditure 3,386.9 Parkway will fund 60% of this balance through its bank facility and the 40% partner for the HK Hospital Project willfundbalanceof40% Funded from Malaysia s operating cashflows and new bank facilities if required Acibadem will fund these from operating cashflows and Acibadem s bank facilities Based on the following exchange rates: 1 SGD : INR : TL : HKD :

26 Outlook & Prospects Emerging markets will continue to enjoy higher growth in demand for quality private healthcare driven by: - Demographics of home markets - Faster growing upper/middle class - Increased medical travellers from non-traditional markets to medical hubs Opening of new facilities will increase capacity to support increasing demand and hence drive revenue growth - Mount Elizabeth Novena Hospital will progressively open additional wards - Pantai Hospital Manjung commenced operation on 19 May Acibadem Atakent Hospital opened in January 2014 Inflationary impact on staff costs, rentals and other operating expenses and start-up costs of newly commissioned hospitals will be mitigated through - Increased mix of higher revenue intensity cases and price adjustments - Operating leverage from growth in revenues and - Especially from improved margins of the 3 new hospitals opened in

27 Outlook & Prospects: Overall IHH Group (cont d) Expect emerging markets to operate in an environment of volatile exchange rates: - IHH s geographically diversified operating subsidiaries spreads currency risks arising from translation differences in the Group s balance sheet and income statement - The Group minimises most of its currency risks by borrowing in the functional currencyofthe borrowing entityor by borrowing in thesame currency asitsforeign operations(ie. hedge of net investments). - This is with the exception of Acibadem Holdings where it borrows in US-dollar and hedges its cashflow instead - through medical tourism receipts in hard currency and - substantial USD cash buffer Continued strong balance sheet and operating cashflows will enable IHH to support its expansion plans. 26

28 Conclusion Attractive and unique healthcare asset Regional healthcare operator with presence in high growth markets of Asia and in the CEEMENA Leading market position in three home markets (Malaysia, Singapore and Turkey) with expanded presence in key markets (including China and India) Attractive industry dynamics (rising affluence, ageing population, structural deficit in private hospitals) Proven management track record Clear growth strategy Diversified earnings base Strong balance sheet 27

29 Appendix Core Businesses and Equity Interests Wholly-owned holding company for Parkway and Pantai healthcare businesses in Singapore and Malaysia Has investments and operations in the PRC, India, Hong Kong, Vietnam and Brunei Indirect 60% owned leading integrated private healthcare operator in Turkey Wholly-owned private healthcare university in Malaysia, with over 7,000 students trained since 1992 IHH owns 35.8% equity interest in Plife REIT One of Asia s largest healthcare real estate investment trusts Listed on the Singapore Stock Exchange IHH owns 10.9% equity interest One of India s most prestigious and largest healthcare providers Listed on Bombay Stock Exchange and the National Stock Exchange of India 28

30 Appendix An integrated, comprehensive suite of services Our Integrated services span: Primary Care Treatment of basic illnesses, checkups, vaccination and dental services Secondary Quaternary Care Specialist consultation, local surgeries, emergency care, diagnostics/imaging services and acute treatment on an inpatient/outpatient basis Tertiary Care Specialist consultative care, advanced treatment, complex surgery and inpatient care with specialised equipment and facilities Tertiary and Secondary Quarternary Care High-intensity complex surgeries and organ transplants Complementary Ancillary Services Laboratory and pathology services, physiotherapy and rehabilitation, emergency help and transportation, home health services, hospital project management, Primarydesign and refurbishment Medical Education Medical education and training for doctors-to-be, and ongoing training for medical personnel 29

31 -End of Presentation-

FOR IMMEDIATE RELEASE 23 August IHH Healthcare Reports Higher Net Profit at RM316.6 million for Q2 2017

FOR IMMEDIATE RELEASE 23 August IHH Healthcare Reports Higher Net Profit at RM316.6 million for Q2 2017 IHH Healthcare Reports Higher Net Profit at RM316.6 million for Q2 2017 Q2 2017 revenue grew 12% to RM2.8 billion on sustained organic growth in all home markets and contribution from new hospitals Headline