Post on 24-Aug-2020
PG.1
Bumrungrad Hospital PCL
Thursday 13 August 2015
Analyst Meeting No.3/2015
(2Q15 Results Update)
PG.2
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 any securities of Bumrungrad Hospital Public Company Limited (the
"Company") in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or
commitment whatsoever.
• This presentation is being communicated only to persons who have professional experience in matters relating to investments and/or
to persons to whom it is lawful to communicate it under the laws of applicable jurisdictions. Other persons should not rely or act upon
this presentation or any of its contents.
• Certain information and statements made in this presentation contain the Company's forward-looking statements. All forward-looking
statements are the Company's current expectation of future events and are subject to a number of factors that could cause actual
results to differ materially from those described in the forward-looking statements. Prospective investors should take care with respect
to such statements and should not place undue reliance on any such forward-looking statements.
• This presentation has been prepared by the Company solely for the use at this presentation. The information in this presentation has
not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on,
the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the Company, any of
its affiliates or any of their respective agents, advisors or representatives, shall have any liability (in negligence or otherwise) for any
loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this
presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change
without notice and its accuracy is not guaranteed. None of the Company, any of its affiliates or any of their respective agents, advisors
or representatives, makes any undertaking to update any such information subsequent to the date hereof.
• This presentation should not be construed as legal, tax, investment or other advice. No part of this presentation shall be relied upon
directly or indirectly for any investment decision-making or for any other purposes. Prospective investors should undertake their own
assessment with regard to any investment and should obtain independent advice on any such investment’s suitability, inherent risks
and merits and any tax, legal and accounting implications which it may have for them.
• Certain data in this presentation were obtained from various external data sources, and none of the Company, any of its affiliates or
any of their respective agents, advisors or representatives have verified such data with independent sources. Accordingly, the Company
makes no representation as to the accuracy or completeness of those data, and such data involve risks and uncertainties and are
subject to change based on various factors.
PG.3
Overview
• Inpatient volumes advanced 14.4% in terms of patient days and 2.2% in terms of admissions in 2Q15 compared with 2Q14. This resulted mostly from a higher average length of stay for both non-Thai and Thai patients, along with strong international admission growth of 9.3%. Outpatient volumes declined 2.5% in 2Q15 compared with 2Q14, mostly due to a 6.1% decrease in Thai volumes, offset by non-Thai volume growth. Revenue intensity rose 7.1% and 11.2% for outpatient and inpatient services, respectively. The combined results of the above resulted in outpatient service revenues advancing 11.3% while inpatient service revenues grew 19.1%. The revenue contribution from inpatient services in 2Q15 was 49.9% and from outpatient services was 50.1%, compared with 48.2% and 51.8%, respectively, for 2Q14. In terms of revenues by market segment, non-Thai patients accounted for 65.9% of the total in 2Q15, with the remaining 34.1% from Thai patients, compared to 61.9% and 38.1% for non-Thai patients and Thai patients, respectively, in 2Q14. The change from the prior year was mostly due to the strong growth in non-Thai business in 2Q15.
Operational Update
Financial Performance
• Bangkok - Obtained EIA Approval for Petchburi project
• Thailand - Continuing Bumrungrad network development
• International - Mongolia, developing and improving the capability of UBSD
Updates and Ongoing
Focus
2Q15 growth YTD Jun15 growth
Total revenues 15.8% 18.4%
EBITDA 24.3% 32.4%
Net profit 33.6% 43.1%
PG.4
Agenda
Strategy
Operational Update
Financial Performance
PG.5
Strategy
• Campus expansion
• Doctor recruitment in subspecialties
• Advanced technology
• Skilled work force
Bumrungrad International
Hospital
• Development of the Bumrungrad Network • Leverage economies of scale in knowledge
Thailand
• Evolve UB Songdo into a regional hospital
• Develop a diagnostic clinic in Myanmar
• Review of selective opportunities in existing referral markets
International
PG.6
Strategy (Detail)
• Opened 5 floors in Bumrungrad International Clinic Clinics
• Added 18 ICU beds and 58 ward beds in Bumrungrad International Hospital building
• Renovate and expand ancillary services Inpatient
• Petchburi Road’s EIA approval allows a Maximum FAR of 78,233 m2
• Construction expected to start in Q1 2016 2nd Campus
• Bought 6,172 m2 of land on Sukhumvit Soi 1
• Evaluate development options for Soi 1
• Grand opening of Bumrungrad Residential and Office Building on 6 March 2015 for employee housing and administrative offices
Acquire Additional Capacity
• Evolve UB Songdo into a regional hospital International
Estimated Capital Investment (Million THB)
Y15 Y16 Y17 Y18 Total
1,987 3,815 5,111 487 11,400
PG.7
Master Plan Update
EIA Approval was obtained for
the Petchburi Campus on 29
January 2015.
Soi 1 development is being
evaluated
Renovate BHR with clinical
activity on 6 floors (if allowed by
BMA and MOPH) and replacing
the MEP infrastructure.
Completed renovation of the
BRO Building
PG.8
Current Status – Petchburi Project
EIA Approval allows a Maximum FAR of 78,233 m2
PG.9
Main Lobby
Current Status – Petchburi Project
Construction expected to start in Q1 2016
PG.10
Soi 1 Outpatient Facility
PG.11
Soi 1 Outpatient Facility
PG.12
Soi 1 Outpatient Facility
The total site is 6,172 m2
In order to maximize the allowed building area, the site will be divided in 3 zones
Maximum total building area is expected to be 25,000 m2
Development options are being evaluated
PG.13
Strategy
Operational Update
Financial Performance
Agenda
PG.14
3,022 3,038 2,958 3,348 3,424 3,397
2,820
3,348 3,325 3,264
0
1,000
2,000
3,000
4,000
2Q 3Q 4Q 1Q 2Q
2013 2014 2015
Overall Volume Trend
Visits
Average Visits per Day
2.5%
80 89 83 91
101 99
84 91
99 93
0
20
40
60
80
100
120
2Q 3Q 4Q 1Q 2Q
2013 2014 2015
Admissions
Average Admissions per Day
ADC
Average Daily Census
356
374 368
406
438 440
374
406
457 465
300
320
340
360
380
400
420
440
460
480
2Q 3Q 4Q 1Q 2Q
2013 2014 2015
10.8%
13.1% 14.1%
12.7%
13.7% 17.3%
Inpatient volumes advanced 14.4% in terms of patient days and 2.2% in terms of admissions in 2Q15 compared with 2Q14. This resulted mostly from a higher average length of stay for both non-Thai and Thai patients, along with strong international admission growth of 9.3%. Outpatient volumes declined 2.5% in 2Q15 compared with 2Q14, mostly due to a 6.1% decrease in Thai volumes, offset by non-Thai volume growth. Revenue intensity rose 7.1% and 11.2% for outpatient and inpatient services, respectively. The combined results of the above resulted in outpatient service revenues advancing 11.3% while inpatient service revenues grew 19.1%. The revenue contribution from inpatient services in 2Q15 was 49.9% and from outpatient services was 50.1%, compared with 48.2% and 51.8%, respectively, for 2Q14.
14.9% 17.9%
19.8% 18.1% 19.7% 22.2% 2.2% 14.4%
PG.15
7,411 7,459
7,652
6,982 7,254 7,624
7,531 6,982
7,976 7,967
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2Q 3Q 4Q 1Q 2Q
2013 2014 2015
246,372
234,988 251,356 238,899
231,289 238,959
263,996
238,899 261,444
278,362
0
50,000
100,000
150,000
200,000
250,000
300,000
2Q 3Q 4Q 1Q 2Q
2013 2014 2015
Revenue per episode reflects an increase from the 1st Jan 2015 price adjustment. Revenue intensity : 2nd Quarter OPD revenue intensity 7.1% IPD revenue intensity per admission 11.2%
Revenue Intensity
Bt
Revenue per Visit
Bt
Revenue per Admission
3.0%
2.8%
1.6%
5.8% 0.4% 5.9%
4.9% 1.0%
14.1%
16.5%
PG.16
Volume Contribution by Nationality
Revenue Contribution by Nationality
International Breakdown
• For 2Q15: Revenues by market segment, non-Thai patients
accounted for 65.9% of the total in 2Q15, with the remaining
34.1% from Thai patients, compared to 61.9% and 38.1% for
non-Thai patients and Thai patients, respectively, in 2Q14. The
change from the prior year was mostly due to the strong growth
in non-Thai business in 2Q15.
• YTD Jun15 Top 5 revenue contribution by Non-Thai Nationalities
Myanmar 9%
UAE 8%
Oman 7%
USA 5%
Cambodia 4%
62% 60% 63% 65% 66%
38% 40% 37% 35% 34%
0%
20%
40%
60%
80%
100%
2Q14 3Q14 4Q14 1Q15 2Q15
International Thai
52% 52% 53% 54% 54%
48% 48% 47% 46% 46%
0%
20%
40%
60%
80%
100%
2Q14 3Q14 4Q14 1Q15 2Q15
International Thai
Bumrungrad International Hospital data
PG.17
Revenue Breakdown
Inpatient vs. Outpatient (% of revenue) Method of Payment (% of revenue)
YTD Jun15
• 2Q15 Revenue growth:
Outpatient revenue increased by 11.3% y-o-y
Inpatient revenue increased by 19.1% y-o-y
• Self-pay remains the primary method of payment
48% 48% 48% 49% 50%
52% 52% 52% 51% 50%
0%
20%
40%
60%
80%
100%
2Q14 3Q14 4Q14 1Q15 2Q15
Inpatient Outpatient
Corporate Contracts - Domestic
8%
Corporate Contracts -
Intl 10%
Self-pay 69%
Insurance 13%
PG.18
Agenda
Strategy
Operational Update
Financial Performance
PG.19
Revenue from Hospital Operations
Revenue from Hospital Operations (THB mm)
3,762
7,351
4,374
8,740
0
3,000
6,000
9,000
2nd Quarter YTD Jun
Y2014 Y201518.9%
• 2Q15: The Company reported Revenues from hospital operations of Baht 4,374
million, a 16.3% improvement year-over-year from Baht 3,762 million in 2Q14.
Inpatient volumes advanced 14.4% in terms of patient days and 2.2% in terms of
admissions in 2Q15 compared with 2Q14. This resulted mostly from a higher average
length of stay for both non-Thai and Thai patients, along with strong international
admission growth of 9.3%. Outpatient volumes declined 2.5% in 2Q15 compared with
2Q14, mostly due to a 6.1% decrease in Thai volumes, offset by non-Thai volume
growth. Revenue intensity rose 7.1% and 11.2% for outpatient and inpatient services,
respectively. The combined results of the above resulted in outpatient service revenues
advancing 11.3% while inpatient service revenues grew 19.1%. The revenue
contribution from inpatient services in 2Q15 was 49.9% and from outpatient services
was 50.1%, compared with 48.2% and 51.8%, respectively, for 2Q14. In terms of
revenues by market segment, non-Thai patients accounted for 65.9% of the total in
2Q15, with the remaining 34.1% from Thai patients, compared to 61.9% and 38.1% for
non-Thai patients and Thai patients, respectively, in 2Q14. The change from the prior
year was mostly due to the strong growth in non-Thai business in 2Q15.
• YTD Jun15: Revenues from hospital operations were Baht 8,740 million for YTD Jun15,
an 18.9% improvement year-over-year from Baht 7,351 million in YTD Jun14. Inpatient
volumes advanced 18.1% in terms of patient days and 9.8% in terms of admissions in
YTD Jun15 compared with YTD Jun14. This resulted mostly from a higher average
length of stay for both non-Thai and Thai patients, along with strong international
admission growth of 28.9%. Outpatient volumes grew 6.8% in YTD Jun15 compared
with YTD Jun14, mostly due to a 22.6% increase in international volumes, offset by a
5.0% decrease in Thai volumes. Excluding UBSD, inpatient volumes rose 11.4% for
patient days and 3.1% for admissions, with outpatient volumes increasing 3.8%.
Revenue intensity rose 4.1% and 2.5% for outpatient and inpatient services,
respectively. Revenue intensity, excluding UBSD, increased 6.7% for outpatient services
and 8.8% for inpatient services. The combined results of the above resulted in
outpatient service revenues advancing 17.7% while inpatient service revenues grew
18.0%. The revenue contribution from inpatient services in YTD Jun15 was 49.7% and
from outpatient services was 50.3%, compared with 49.6% and 50.4%, respectively,
for YTD Jun14. In terms of revenues by market segment, non-Thai patients accounted
for 65.7% of the total in YTD Jun15, with the remaining 34.3% from Thai patients,
compared to 60.4% and 39.6% for non-Thai patients and Thai patients, respectively, in
YTD Jun14. The change from the prior year was mostly due to the strong growth in
non-Thai business in YTD Jun15.
16.3%
PG.20
EBITDA and EBITDA Margin
EBITDA (THB mm)
EBITDA Margin
28.0% 28.2%
30.1% 31.5%
20.0%
24.0%
28.0%
32.0%
36.0%
2nd Quarter YTD Jun
Y2014 Y2015
1,072
2,103
1,332
2,784
0
800
1,600
2,400
3,200
2nd Quarter YTD Jun
Y2014 Y2015
• 2Q15: Cost of hospital operations (including Depreciation and amortization) was Baht 2,593 million for 2Q15, or 12.0% more year-over-year from Baht 2,315 million in 2Q14. This represents a favorable change when compared to the 16.3% growth in Revenues from hospital operations. The percentage of cost to Revenues from hospital operations improved from 61.5% in 2Q14 to 59.3% in 2Q15. Administrative expenses (including Depreciation and amortization) were Baht 763 million in 2Q15, or 11.0% more than Baht 687 million in 2Q14. The increase in Administrative expenses was mostly due to Baht 24 million increase in staff costs, largely associated with volume growth and annual merit increases; Baht 17 million more in bad debt expense, mostly from the prior year reversal of a large bad debt account; Baht 15 million additional software support and maintenance expenses related to the IBM Watson project; and Baht 6 million in marketing related expenses due to timing differences of expenditures between periods. EBITDA grew 24.3% year-over-year from Baht 1,072 million in 2Q14 to Baht 1,332 million in 2Q15, with an EBITDA margin of 30.1% in 2Q15 compared to 28.0% in 2Q14.
• YTD Jun15: Cost of hospital operations (including Depreciation and amortization) was Baht 5,106 million for YTD Jun15, or 13.9% more year-over-year from Baht 4,484 million in YTD Jun14. This represents a favorable change when compared to the 18.9% growth in Revenues from hospital operations. The percentage of cost to Revenues from hospital operations improved from 61.0% in YTD Jun14 to 58.4% in YTD Jun15. Administrative expenses (including Depreciation and amortization) were Baht 1,462 million in YTD Jun15, increasing 6.9% from Baht 1,368 million in YTD Jun14. This change included Baht 51 million increases in staff costs, largely associated with volume growth and annual merit increases; Baht 33 million more in software support and maintenance expenses related to the IBM Watson project; Baht 18 million more in bad debt expense, mostly from the prior year reversal of a large bad debt account; Baht 8 million in credit card commission; and Baht 6 million additional marketing related expenses due to timing differences of expenditures between periods, offset by a Baht 32 million reduction in donations to support nurse recruitment. EBITDA grew 32.4% year-over-year from Baht 2,103 million in YTD Jun14 to Baht 2,784 million in YTD Jun15, with the EBITDA margin advancing to 31.5% in YTD Jun15 compared with 28.2% in YTD Jun14.
32.4%
24.3%
PG.21
Net Profit (THB mm)
Diluted EPS (THB)
Net Profit Margin
Net Profit, Net Profit Margin and Diluted EPS
16.9%16.5%
20.4%
19.0%
14.0%
16.0%
18.0%
20.0%
22.0%
24.0%
2nd Quarter YTD Jun
Y2014 Y2015
• 2Q15: Net profit for 2Q15 grew 33.6% to Baht 849 million from Baht 635 million in 2Q14, with Net profit margin at 19.0% in 2Q15 compared to 16.5% in 2Q14. Diluted EPS increased at the same rate as Net profit to Baht 0.98 in 2Q15 from Baht 0.73 in 2Q14.
• YTD Jun15 : Net profit surged 43.1% to Baht 1,823 million in YTD Jun15 from Baht 1,274 million in YTD Jun14, with Net profit margin at 20.4% in YTD Jun15 compared to 16.9% in YTD Jun14. Diluted EPS increased at the same rate as Net profit to Baht 2.10 in YTD Jun15 from Baht 1.47 in YTD Jun14.
635
1,274
849
1,823
0
400
800
1,200
1,600
2,000
2nd Quarter YTD Jun
Y2014 Y2015 43.1%
0.73
1.47
0.98
2.10
0.00
0.50
1.00
1.50
2.00
2.50
2nd Quarter YTD Jun
Y2014 Y201543.1%
33.6%
33.6%
PG.22
Leverage x Interest Coverage
x
Net Debt to EBITDA
x
Net Debt to Equity
x
0.6
(0.1)
0.2
0.0
(0.0)
(0.25)
0.00
0.25
0.50
0.75
20112012
2013 2014YTD
Jun15
1.3
(0.3)
0.5
0.1
(0.0)
(0.50)
0.00
0.50
1.00
1.50
2011
2012
2013 2014YTD
Jun15
14.9 13.8 16.4 18.8
23.3
0
10
20
30
40
2011 2012 2013 2014 YTD Jun15
Note: Net debt excludes fixed deposits with a maturity exceeding three months but not more than one year which are reported as Short-term investments of Baht 1,872 million in YTD Jun15, Baht 1,922 million in 2014 and Baht 2,718 million in 2013.
*Interest expense related to the purchase of common shares of Bangkok Chain Hospital PCL (doing business as "Kasemrad Hospital Group") to calculate interest coverage ratio was Baht 111 million based on remaining days after the transaction settled. Assuming this interest expense was incurred for the full year, interest expense from this transaction would be Baht 140 million and interest coverage ratio will be 12.9x **After adding back the YTD Jun15, 2014 and 2013 capitalized interest expense related to the campus expansion.
• Net debt to equity was 0.0x as at 30 June 2015 and 31 December 2014, as total debt as at 30 June 2015 remained lower than Cash and cash equivalents, leading to a net cash balance.
• The Company’s Interest coverage ratio improved to 23.3x in YTD Jun15 from 17.5x in YTD Jun14, due to higher EBITDA in YTD Jun15 compared to YTD Jun14. Interest expense has been reduced by Baht 27 million in both YTD Jun15 and YTD Jun14 for capitalized interest associated with the campus expansion project.
* ** **
**
PG.23
Q & A