Investor Presentation Slides

1

Safe Harbor Statement

This presentation was prepared for informational purposes only and shall not be copied, or relied upon by any other person for whatever purpose. This presentation must be viewed in conjunction with the oral presentation provided by officers of Raffles Medical Group. Nothing in this presentation constitutes accounting, legal, regulatory, tax or other advice. The reader(s) of this document should consult his/her own professional advisors about the issues discussed herein. This presentation is not intended as an offer or solicitation with respect to the purchase or sale of any investment product and nothing herein should be construed as a recommendation to transact in any investment product.

Name of the

practice was

changed to

Raffles Medical

Group (RMG)

Dr Loo Choon

Yong and Dr

Alfred Loh took

over Teng's Clinics

at Cecil Street

and Maxwell

House on 1 Aug

1976 1980

Raffles

SurgiCentre

opened on 18

Sept as the first

standalone day

surgery centre in

Southeast Asia

1993

RMG became

the first full-

fledged

healthcare

provider to be

publicly listed in

Singapore on

11 Apr

1997

Raffles Hospital

commences

operations on 31

Mar

2001

RMG purchases

land adjacent to

Raffles Hospital

for hospital

extension project

2014 1995

RMG opened its

first overseas

clinic in Hong

Kong

RMG opened its

first medical

centre in

Shanghai

2010

Raffles Hospital

received the

Joint

Commission

International

accreditation

in Jan

2009 2013

RMG purchases

Holland Village

property , part of

which will be used

for outpatient

medical and

specialist clinics

Primary Care

Specialist Care

Tertiary

Care

A leading regional integrated

healthcare organisation

Primary care

• One of the largest network

of private family medicine

clinics in Singapore^

• Clinic network in Hong Kong and medical centre

in Shanghai

• More than 9,000

corporate clients in Singapore and Hong Kong

• Multi-specialty practice to

more than 2 million

patients in Singapore

^Map of clinics can be found in the Annex

RAFFLES

MEDICAL

GROUP

Raffles Cancer Centre

Raffles Children’s

Centre

Raffles Chinese Medicine

Raffles Counselling Centre

Raffles Dental

Raffles Diabetes & Endocrine Centre Raffles Dialysis

Centre

Raffles ENT Centre

Raffles Executive Medical Centre

Raffles Eye Centre

Raffles Fertility Centre

Raffles Health-

screeners

Raffles Cancer Centre

Raffles Children's Centre

Raffles Specialist Centres

Raffles Heart Centre

Raffles Women's Centre

RAFFLES

MEDICAL

GROUP

Raffles Heart

Centre

Raffles Internal Medicine Centre

Raffles

Japanese Clinic

Raffles Neuroscience Centre

Raffles Nuclear Medicine

Raffles Orthopaedic Centre Raffles Pain

Management Centre

Raffles Rehabilitation Centre

Raffles Skin &

Aesthetics

Raffles Surgery Centre

Raffles Urology Centre

Raffles Women’s Centre

Radiology

Raffles Specialist Centres

• Rooms ranging from suites to six beds

• Labour Ward and Delivery Suites

• Nursery

• Neonatal Intensive Care Unit (NICU)

• 12 Operating Theatres

• Day Surgery

• Intensive Care Unit

• Radiology

• Clinical Laboratory

• Rehabilitation

Wards

Delivery suites

Raffles Hospital

• 24-Hour Emergency

◦ Accident and Emergency Services

◦ Ambulance Transfers

◦ House / Hotel Calls

◦ Specialist on call

◦ X-ray and lab services

9

Raffles Hospital

• ~1/3 of our hospital patients are

foreigners coming from more than 100

countries

• Raffles International Patients Centre is

organised for international patients to

have their medical problems

investigated and diagnosed, with a

treatment plan, within 24 hours

Translation services available for…

Arabic Mandarin Russian

Khmer Japanese Thai

Bengali Korean Vietnamese

Bahasa

Indonesia Burmese

Raffles International Patient Centre

• Raffles is the only integrated private healthcare provider in Singapore

operating under the group practice model

• Doctors are employees of the Group, as opposed to individual

doctors having their own practices

• Doctors adhere to protocols and fee schedules set by the hospital

• Physicians and specialists provide seamless multi-disciplinary team-

based care

• Cost effective care for patients and payors

Integrated & Coordinated Care

• Case notes are shared by the

team of doctors

• Care episodes are reviewed

by medical and surgical

audit committees to ensure

quality consistency

Surgical Audit Committee

• Similar clinical governance model as some of the top medical

institutions in the world

13

Historical Annual

Performance

22 25 33

43 48 53 63

76 88 99 102

113

134

169

201 219

239

273

312

341

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

In S$mn

Hospital

Services

63%

Healthcare

Services

34%

Investment

3%

Source: FY 2013 Annual Report on Segment Reporting

1.1 3.0 3.7 3.7 2.6 4.3 5.3

0.5 4.5

8.1 9.5

12.0 15.8

23.4

31.7

37.4

42.5

48.5

53.3

61.0

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

Note: The Profit after Tax excluded fair value gain of investment properties [2007:S$12.5m, 2009:S$0.6m, 2010:S$3m, 2011:S$2.2m, 2012:S$3.9m, 2013:S$3.9m] and gain on disposal of a subsidiary [2013:S$20.4m]

In S$mn

2008 2009 2010 2011 2012 2013

Healthcare Services 9.1% 7.7% 8.7% 9.2% 8.7% 8.5%

Hospital Services 22.0% 24.7% 24.9% 24.2% 23.2% 24.6%

Group* 19.1% 19.9% 20.3% 20.3% 19.5% 20.1%

* The Segment Profit Before Tax excluded fair value gain of investment properties [2009:S$0.6m, 2010:S$3m,

2011:S$2.2m, 2012:S$3.9m, 2013:S$3.9m] and gain on disposal of a subsidiary [2013:S$20.4m]

2008 2009 2010 2011 2012 2013

Ordinary Dividend

(cts) 2.5 3.0 3.5 4.0 4.5 5.0

Special Dividend (cts) - - - - - -

Payout Ratio 41% 41% 40% 42% 43% 43%*

Dividend Yield 3.6% 2.2% 1.6% 1.9% 1.5% 1.7%

*Excluding gain on disposal of a subsidiary of $20.4m in 2013 (2012:nil)

Expansion Plans

• Acquisition of land adjacent to

current Raffles Hospital site

• Estimated additional 220,000sqf of

space, increasing GFA to

approximately 530,000sqf

• Expand existing services and

develop new healthcare facilities

and services

• Estimated S$310mn total

development costs, including land

cost and refurbishment of existing

hospital

• Expected construction period of

24 months

Artist’s impression

• Acquisition of property at

Holland Village

• Redevelopment to achieve

GFA of 62,720sqf

• Expand medical and specialist

services to Holland Village

• Estimated S$120mn total

development costs, including

land cost and construction

costs

• Expected construction period

of 24 months

Artist’s impression

Signed Letter of Intent

to build a private

hospital in Shenzhen

Signed Framework Agreement to build a

private hospital in

Pudong, Shanghai

3Q 2014 Performance

• PAT grew 11.0% to S$15.5m

Q3 2013

S$’000

Q3 2014

S$’000 % Change

Revenue 85,050 94,486 11.1

EBITDA 18,848 20,669 9.7

Operating Profit 16,783 18,150 8.1

Profit Before Tax 16,996 18,431 8.4

Profit After Tax 13,964 15,495 11.0

Diluted EPS (cents) 2.47 2.71 9.7

Net Asset Value (cents) 85.31* 91.37 7.1

*As at 31 December 2013

• 11.1% revenue growth achieved to reach S$94.5m

KEY TOPLINE GROWTH

DRIVERS

INPATIENT ADMISSIONS / PATIENT LOAD

CLINIC NETWORK

PROVISION OF HEALTHCARE

INSURANCE SERVICES

NEW SPECIALISTS

• Revenue from Hospital Services and Healthcare Services increased

by 7.3% and 16.4% respectively

14.3% 14.7% 16.4%

4.8% 4.9% 7.3%

0.0%

5.0%

10.0%

15.0%

20.0%

Q1 2014 Q2 2014 Q3 2014

Healthcare Services Hospital Services

• Healthy cash position of S$124.5m as at 30 Sep 2014

130.6

124.5

8.8

(10.2)

(4.8)

115

120

125

130

135

140

145

Cash at

30 Jun 14

Operating

cashflow

Investing

cashflow

Financing

cashflow

Cash at

30 Sept 14

S$

millio

ns

11 Apr 1997: $0.32 *

30 Sept 2014: $3.85

1997 30 Sep 2014

Share Price S$0.32 * S$3.85

Market Capitalization S$93.1 million S$2.17 billion

*Adjusted – rights issue 3 for 10 and bonus issue

~1,356% or

17% p.a.

Annex

Jurong Point

Jurong East Clementi

Sixth Avenue

Lot 1

Yew Tee Point

Woodlands Industrial

Park D

Causeway

Point

Sembawang

Way

Northpoint

Seletar Mall

Compass

Point White Sands

Loyang Point Changi City

Point

Changi Business

Park Terminal 2

Terminal 3

Transit 1

Transit 2

Transit 3

Tampines 1

Bedok

North

Bedok Mall

Siglap Centre

I12 Katong

NEX

Ang Mo

Kio

Bishan

Toa Payoh

Central

Ngee Ann City

Hougang

Central

Centrepoint

Raffles City

Raffles

Hospital

Marina Square

Marina Bay Financial

Centre

Asia Square

Raffles Place

80 Robinson Road

Capital

Tower

Anson Centre

Harbourfront

Maple Tree Business

City

Anchor Point

Science Park

1

155.2

386.5 441.2

76.0 26.4 12.4

80.8 11.7 15.1

186.3

1,021.7

529.7

193.0

60.6 22.4 113.4

22.3 22.1

0

200

400

600

800

1,000

1,200

Exp

en

ditu

re (

US$

bill

ion

s)

2012

2018

CAGR

2012-

2018 3.1% 17.6% 3.1% 16.8% 14.9% 10.4% 5.8% 11.4% 6.5%

APAC Healthcare Expenditure 2012-18

Source: Frost & Sullivan

Healthcare expenditure will continue to

experience growth in the next 6 years

in the APAC region as rising patient

demands for better healthcare result in

healthcare reforms in the region as well

as increasing life expectancy resulting

in more elderly requiring long-term

care.

Consumer Price Indices: Household

Healthcare Expenditure Consumer Price Indices (CPI) 2011 2012 2013

General CPI 108.2 113.1 115.8

Healthcare CPI 104.3 109.0 113.2

Household Healthcare Expenditure 1997/98 2002/03 2007/08

Proportion of monthly Household Expenditure spent on Healthcare1,2

(%)

(by income quintiles) ► All Households 3.5 4.7 5.3

► Lowest 20% 5.0 5.7 6.0

► 2nd quintile 3.0 4.8 5.5

► 3rd quintile 3.4 4.8 5.5

► 4th quintile 3.2 4.8 5.3

► Highest quintile 3.3 4.1 4.8 Notes: 1 Based on Resident Households

2Income quintiles are based on ranking of households by their monthly household income from all

sources (excluding imputed rental of owner-occupied accommodation) per household member

Source : Ministry of Health, Singapore

Favourable Demographics: A Growing,

Ageing Population

Significant increase in

population aged 50-64 from

2000 to 2013

Source: Department of Statistics, Singapore

Median age of resident

population rose from 34.0 years

in 2000 to 38.9 years in 2013

2010 2011 2012 2013

Total Population (’000) 5,076.7 5,183.7 5,312.4 5,399.2

Singapore Residents (’000) 3,771.7 3,789.3 3,818.2 3,844.8

Age of Singapore Residents 2010 2011 2012 2013

► % below 15 years 17.4 16.8 16.4 16.0

► % 15 - 64 years 73.6 73.9 73.7 73.6

► % 65 years & above 9.0 9.3 9.9 10.5

Source : Ministry of Health, Singapore

Favourable Demographics: A Growing,

Ageing Population