YOUR F A M I LY YOUR HOSPITAL

Transcription

1 Bangkok Chain Hospital PCL (BCH) Analyst Presentation 4Q2017 / 12M March 2018 YOUR F A M I LY YOUR HOSPITAL 1

2 Disclaimer Important Notice This presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any share in Bangkok Chain Hospital Public Company Limited ( BCH ) in any jurisdictions nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This presentation includes forward-looking statements that reflect the BCH s current views with respect to future events and financial performance. These views are based on a number of assumptions and are subject to various risks. Such forward-looking statements are not guarantees of future performances and no assurance can be given that any future events will occur, that projections will be achieved or that the BCH s assumptions will prove to be correct. Actual results may differ materially from those projected, and BCH does not undertake to revise any such forward-looking statements to reflect future events or circumstances. The information contained in this presentation is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning BCH Neither BCH makes any representation regarding, or assumes any responsibility or liability for, the accuracy or completeness of, or any errors in or omissions from, any information contained herein. This presentation and all other information provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws. 2

3 Agenda 4Q2017&12M2017 Financial Summary 2017 Overview Operational Statistics Financial Performance Updated Projects in Pipeline 2018 Highlight 3

4 Consolidated Financial Summary Results (4Q2017) Results (12M2017) (Unit: Mb.) 1, % 28.55% 1, , % 13.55% 7, % % 29.90% 11.51% 13.95% Q4/16 Q4/17 Total Revenue EBITDA NI* *Net income attributable to owners of the Company 21.77% 1, , % % 11.39% 12.46% Total Revenue EBITDA NI* Comments (4Q2017 & 12M2017) Additional revenue from SS health check program started since 1 January 2017 Additional adjustment of SS payment by SSO since 1 July 2017 Increase in number of SS registered person (6% ) Recovery of WMC with full year positive EBITDA and achieving net profit in Nov 2017 Price adjustment for cash patient to reflect the current market situation 4

5 2017 Overview Operational Revenue Contribution by Brand () Operational Revenue Growth by Brand () 12M % 11.40% 12M % 8.9% 6,511 Mb. 7,255 Mb. 35.1% 6.45% 10.19% 7.82% 10.72% Kasemrad WMC Karunvej Operational Revenue Contribution by Type () 17.2% Operational Revenue Growth by Type () 12M M % 35.39% 35.55% 11.40% 0.85% 35.53% 37.45% 6,511 Mb. 7,255 Mb % 26.17% Out-patient In-patient Social Security Universal Coverage OPD IPD SC UC 11.4% 4.0% 17.9% -7.3% 5

6 2017 Overview (Cont ) Revenue from OPD Cash Patients Growth Perspective () 0.47% 0.26% -7.24% 0.38% 0.21% -7.87% Revenue 11.4% 69.27% 12M2016 2,315 Mb % 69.91% 12M2017 2,578 Mb % # Patients Revenue per bill 1.9% 9.2% Revenue from IPD Cash Patients Growth Perspective () % 7.60% 18.08% 12M2016 1,826 Mb % 49.37% 7.38% % 17.89% 12M2017 1,898 Mb % 49.17% Revenue # Patients Revenue per bill 4.0% -5.7% 10.3% 6

7 2017 Overview (Cont ) Revenue from SC Patients Growth Perspective () 7.3% 1.8% 3.4% 8.0% 0.5% 0.6% Revenue 17.9% 16.7% 26.5% 12M2016 2,305 Mb. 47.6% 18.3% 12M2017 2,717 Mb. 25.9% 43.3% #Avg. Registered Persons Revenue per head 6.1% 11.1% SC Annual Utilization Rate OPD Utilization IPD Utilization Comments Increased number of SC registered persons Additional revenue from Check-up and Dental SC Payment Adjustment from 1 July 2017 Received revenue payment as a result of credit term enhancement for Risk Adjusted Capitation

8 2017 Overview (Cont ) COGS Analysis Description 2017 (mb) 2016 (mb) Growth Remarks Medical and supply costs 1, , % Efficiently utilized Personnel expense 1, , % Efficiently utilized Doctor fee 1, , % Efficiently utilized Depreciation and amortization % N/A Utility (19.66%) Efficiently utilized Others % Higher Lab cost due to SS check-up and referral fee Total 4, , % Better performed Percent of Revenue Diff Remarks Medical and Supply costs 18.57% 19.14% -0.57% Efficiently utilized Personnel expense 17.15% 17.49% -0.34% Efficiently utilized Doctor fee 19.07% 19.59% -0.52% Efficiently utilized Depreciation and amortization 5.93% 6.32% -0.39% N/A Utility 1.95% 2.70% -0.75% Efficiently utilized Others 4.55% 3.44% 1.11% More Lab cost due to SS check-up and referral fee Total 67.22% 68.68% -1.46% Better performed Gross Profit Margin 32.78% 31.32% +1.46% Better performed 8

9 2017 Overview (Cont ) SG&A Analysis Description 2017 (mb) 2016 (mb) Growth (%) Remarks Promotion Expense % More promotion to boost revenue Personnel Expense % Efficiently utilized Depreciation and amortization % N/A Provision for doubtful debt (21.05) N/A In accordance with accounting policy Repair & Maintenance % Year of renovation Utilities +rental % Efficiently utilized Others (3.41%) Efficiently utilized Total % Better performed Percent of Revenue Diff Remarks Promotion Expense 0.76% 0.62% 0.14% More promotion to boost revenue Personnel Expense 4.22% 4.37% (0.15%) Efficiently utilized Depreciation and amortization 1.48% 1.58% (0.10%) N/A Provision for doubtful debt 0.60% (0.32%) 0.93% In accordance with accounting policy Repair & Maintenance 1.45% 1.40% 0.05% Year of renovation Utilities + Securities + Cleaning 2.25% 2.34% (0.09%) Efficiently utilized Others 2.46% 2.83% (0.38%) Efficiently utilized Total 13.23% 12.83% 0.26% Better performed Operating Profit Margin 19.55% 18.49% 1.06% Better performed 9

10 2017 Overview (Cont ) Operating 1,813.7 MB Investing -2,483.1 MB Short term financial management Investment in land use right -1,410.7 MB MB Financing MB Purchase of medical equipment Construction cost for - Kasemrad Ramkamhang - Kasemrad Hospital Sriburin - Kasemrad Chachoengsao - Renovation of other branches MB MB Net decrease in cash MB Net cash MB Other investing activities MB Total amount of -2,483.1 MB 10

11 2017 Overview (Cont ) WMC s Operational Revenue (Before Elimination) Unit: Mb. 81%** 94* 28% 72% % 65% 41% OPD Revenue by Patient Type % 34% % 63% 53% IPD * 9 months performance as WMC was opened in March 2013 ** Annualized base for growth rate calculation FY2016: 430 mb 36% % 52% Comments Diversified patient portfolio in term of nationalities and intensity of diseases Expand an international market through Agency Network and Representative Offices Capturing foreign long-stay-patients and medical tourism Opening new clinics for alternative medicine FY2017: 586 mb 46% 54% 9% 8% 6% 5% 3% 2% 2% 2% 16% AUSTRALIAN OMANI CHINESE MYANMAR AMERICAN CAMBODIAN QATAR BRITISH 49% 51% 10% 7% 5% 5% 4% 2% 2% 2% 14% CHINESE AUSTRALIAN OMANI MYANMAR AMERICAN KUWAITI BRITISH ARAB EMIRATES Other Local Foreign Other 11

12 2017 Overview (Cont ) WMC s OPD Utilization by Nationality () WMC s IPD Utilization by Nationality () Unit: times OPD (VN) Unit: times IPD (Beds Day) 59%** 24.9K* 13% 87% % K 85% 17% 62.0K 18% 82% 5% 59.0K 20% 80% 9% 64.4K 19% 81% 126%** 1.1K* 82% 3.2K 22% 78% 37% 4.4K 22% 78% 39% 6.1K 45% 55% 10% 6.7K 39% 61% * 9 months data as WMC was opened in March 2013 ** Annualized base for growth rate calculation Foreign WMC s Operational Statistics 2013* Registered Beds Examination Rooms Thai 150 beds 84 rooms Revenue per bill for Thai OPD (THB) 2,630 2,500 2,635 2,720 3,010 Revenue per bill for Foreign OPD (THB) 3,420 4,540 6,250 8,180 10,090 Revenue per bill for Thai IPD (THB) 42,900 44,330 43,190 45,955 61,150 Revenue per bill for Foreign IPD (THB) 83, , , , ,200 IPD Length of stay Thai (days) IPD Length of stay Foreign (days)

13 Agenda 2Q2017&6M2017 Financial Summary 6M2017 Overview Operational Statistics Financial Performance 2017 Highlight Updated Projects in Pipeline 13

14 Service Capacity (As of 31 Dec 2017) No. Hospital Established year Hospital Accreditation Level #Exam Room (OPD) # Licensed beds (IPD) 1 Kasemrad Bangkae 1984 III Kasemrad Sriburin 1993 III Sriburin Clinic Chiangsan Branch Sriburin Clinic Maesai Branch Kasemrad International Rattanatibeth (Rebranded) 1993 III Kasemrad Saraburi 1996 III Kasemrad Prachachuen 1997 III Kasemrad Rattanatibeth (Rebranded in 4Q17) 2015 II Kasemrad Chachoengsao 2015 II World Medical 2014 JCI, DNV GL Karunvej Sukhapibal II Karunvej Pathum Thani 2013 III Karunvej Ayudhaya 2013 II Total 414 2,178 14

15 2, , , , Operational Statistics (Cont ) Operating Revenue Contribution by Patient by Patient type type 1, % 28.4% 5.2% 1, % 25.2% 1, % 26.6% 9.5% 1, % 26.8% 14.7% 2,004 1,747 1, % 34.9% 36.5% 29.5% 27.5% 27.5% 15.36% Unit: Mb. 1, % 26.7% 36.3% 36.1% 36.2% 35.8% 34.7% 35.8% 35.1% 34.6% Q1/16 Q1/17 Q2/16 Q2/17 Q3/16 Q3/17 Q4/16 Q4/17 Out-patient In-patient Social Security Universal Coverage Number of Patients Growth (Visiting Number) 772K 61.5% 3.9% 802K 64.1% 747K 62.3% 16.3% 869K 66.0% 828K 61.7% 15.2% 954K 65.6% 812K 62.6% 9.4% Unit: visits 888K 65.7% 1.8% 1.5% 1.6% 1.4% 1.9% 1.6% 1.7% 1.5% 36.4% 34.2% 35.9% 32.5% 36.2% 32.8% 35.6% 32.8% Q1/16 Q1/17 Q2/16 Q2/17 Q3/16 Q3/17 Q4/16 Q4/17 Out-patient In-patient Social Security Universal Coverage 15

16 Operational Statistics (Cont ) 1,400,000 1,200,000 Number of Registered persons under Social Security Coverage ( SC ) Unit: people 1,160K 1,160K 1,160K 1,160K 1,020K 1,020K 1,020K 1,020K 120% 105% 1,000, , , , , % 74% 74% 75% 67% 68% 69% 70% 740K 750K 759K 768K 781K 794K 803K 814K Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 90% +6.0% 75% 60% 45% 30% 15% 0% 870, , ,000 #SC Annouced Quota #Reg. persons (end of period) Registration Rate Annualized SC Utilization Rate (Visiting Number per person per year) Unit: people 729K 747K 755K 765K 778K 789K 798K 809K +5.8% 720, , , , , , , OPD Utilization Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Avg. SC Registered persons IPD Utilization

17 Operational Statistics (Cont ) Revenue per Bill & Length of Stay (LOS) Patient Type Q1/16 Q1/17 Q2/16 Q2/17 Q3/16 Q3/17 Q4/16 Q4/17 %Chg Cash OPD (Baht per bill) 1,990 2,135 2,065 2,120 2,020 2,295 2,060 2,320 Cash IPD (Baht per bill) 30,905 33,350 33,620 38,270 33,400 36,720 34,240 39,850 SC Patients (Baht per bill) 2,880 3,130 2,960 3,065 3,230 3,580 3,230 3, % 16.4% 15.6% Cash Patients LOS (days) SC Patients LOS (days) * The above information is based on number of cash patient per bill inclusive of Co-pay patients, EMCO, and employee welfare. Commentary Marketing strategy had been put in place in relation to seasonal occasion in order to boost patient s volume led to revenue per bill swings QoQ For SC Revenue under the type of Risk Adjusted Capitation, these shall be monthly accrued based on historical actual receipt and performance of each hospital. The actual payments are typically received in Q3 and Q4 17

18 Agenda 2Q2017&6M2017 Financial Summary 6M2017 Overview Operational Statistics Financial Performance 2017 Highlight Updated Projects in Pipeline 18

19 Profitability Revenue Trend 4, % 5, % 5, % 6, % Unit: Mb. 7, Revenue grew about 8% per annum in the past 5 years as a result of strong business platform and business expansion since EBITDA and EBITDA Margin 3.2% 5.4% 1,350 1,423 1, % 26.4% 25.1% 23.7% 1, % Unit: Mb. 2, % 28.0% Establishment of WMC resulted to a reduction in 2013 however EBITDA started to recover in the following years since WMC generated revenue % 38.00% 36.00% 34.00% 32.00% 30.00% 28.00% 26.00% 24.00% 22.00% 20.00% Net Profit & Net Profit Margin % -10.8% 1.0% % 9.0% 42.8% Similar rational accordingly to the EBITDA % Unit: Mb % 12.5% % 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Financial Highlight Profitability Ratios (%) Gross Profit Operating Margin ROE* ROA* ** *Using net profit for the year ** If we adjusted for debenture issuance in Dec 2017, ROA will be 9.58% 19

20 Capital Structure Management Capital Structure Unit: Mb. 12,674 10,030 9,992 10,598 10,569 6% 4% 8% 8% 7% 7% 4% 3% 3% 4% 43% 43% 39% 42% 42% 45% 47% 46% 50% 47% 11,674 7% 4% 38% 51% Gearing Ratios Unit: Times 1.21 Total Liabilities / Total Equity Covenant < 2X Well below the covenant (Adjusted) Total Equity Interest Bearing Debt A/P Other Liabilities (Adjusted) Total Liabilities / Total Equity Financial Debts / Total Equity Note: Use total equity which is inclusive of Non-controlling interests Dividend Payment and Payout Ratios Interest Coverage and Debt Service Coverage DPS: Baht per share 130% Unit: Times % % 110% 100% 90% Interest Coverage* % % 66% 66% % 70% 60% 50% 40% 30% Debt Service Coverage ** Cash Dividend Stock Dividend Payout Ratio Note: Debt Service Coverage in 2016 and 2017 were exclusive of current portion of debenture which were rolled over in 2017 and 2018 * Interest Coverage = EBITDA / Interest Expense ** Debt Service Coverage: EBITDA / (ST Loan + CP of LT Loan + Lease + Interest Expense) 20

21 Agenda 2Q2017&6M2017 Financial Summary 6M2017 Overview Operational Statistics Financial Performance 2017 Highlight Updated Projects in Pipeline 21

22 Projects in Pipeline Investments in New Hospitals and Project Costs (Mil Baht) New Hospital Projects Project Information Progress (%) Total Cost Paid KH Ramkamhang 139 beds Open Q4/18 47% KH Sa Kaeo 115 beds Open Q1/20 Expected to start the construction in Q2/ KH Prachinburi 116 beds Open Q2/20 Expected to start the construction in Q2/ (BCH: 85%) KIH Vientiane 250 beds (1 st beds) Open Q3/20 Expected to start the construction in Q2/18 1,330 (BCH: 76%) Total 3, ,191 1, Financial Progress 22

23 Future Trend 2018 Open KH RAM in 4Q Full year additional SS revenue realization Renovated hospitals will be well equipped Drivers 2 Expected continual growth of WMC + IVF Start 2018 with epidemics, Rotavirus and rabies Upgrade Clinic at Maesai to be 30-beds hospital with BOI incentive since Feb 2018 Rebrand KH RTB to KIH RTB and Rebrand KV RTB to KH RTB 23

24 บร ษ ท บางกอก เชน ฮอสป ทอล จาก ด (มหาชน) 24