2Q18 Results Briefing Presentation - September 2018 - Thonburi Healthcare Group
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2Q18 Results Briefing
Presentation
September 2018
Agenda
• Key developments
• Project updates
• Growth outlook
• Financial Information
2
Key developments
• On 24 August 2018, shareholder meeting approved the purchase
of land and building at Pracha Uthit Road to develop Thonburi
Health Village Project.
• The project is another senior home with facilities for elderly to
respond to needs of various customer segments.
• During 2Q18, THG have bought shares of Thanarad Thungsong Co.Ltd.,
total of THB97.6mn. As of 30 June 2018, THG holds 31.23% shares in
Thanarad Thongsong: 23.54% directly and 7.69% through Rajyindee
Hospital PLC.
• BoD meeting of 7/2018 on 5 July 2018 approved the increase of
investment limit from THB240mn to THB360mn in order to maintain
investment proportion as Thanarad Thungsong increased its registered
capital.
• Up until September 2018, THG purchased more shares and holds
43.37% shares in Thanarad Thungsong.
3
Hospital business
Revenue from domestic hospitals led the growth in medical service business.
+7.1% YoY -1.2% QoQ • QoQ slightly dropped due to seasonal effect
• TH1 saw stable growth from new excellence
1,461 centers and collaboration with insurance
1,369 1,401 1,384 company
1,292
• TH2 saw double digit growth due to higher
medical sophistication and more specialist
doctors. It compared to last year when IPD ward
was partly closed for building heart center.
• Capacity expansion projects of TH1 and TH2 are
still on track.
• RYD picked up from last year that had issues on
2Q17 3Q17 4Q17 1Q18 2Q18 insurance claim.
4
Welly Hospital
• The hospital is ramping up patient volume and revenue, aiming for break even in 2019.
• In 2Q18, OPD patients are approx. 200/day and IPD are approx. 60-70/day.
• Welly Hospital continues to develop service standard with expertise, knowledge sharing and service
training from THG.
Revenue
1H2017 1H2018
OPD Revenue IPD Revenue
OPD sequences IPD patient days
1H2017 1H2018 1H2017 1H2018
5
Ar Yu International Hospital
• In August, the hospital held a blessing ceremony as a
start of hospital operation and preparation for soft
launch, which is in 3Q18.
• Plan for 1st phase:
20 OPD rooms, 8 ER beds, 2 ORs and 3 IPD wards
• Key success factors:
- Modern facilities and equipment
- well-known Myanmar medical staff
- Thai hospitality service standard
- patient safety focused and gear for JCI
Staff training CT Scan
OR
6
Ar Yu International Hospital
Lobby Lift lobby Escalator
Pediatric Clinic EENT Clinic
7
Hospital Management & Heart Center
Revenue from hospital management • In 2Q18, revenue from hospital management
dropped YoY and QoQ because some
-20% YoY -8.7% QoQ contracts with overseas clients ended in the
quarter.
194
157
138
131 126
2Q17 3Q17 4Q17 1Q18 2Q18
Revenue from heart center
+27% YoY +3.6% QoQ
69
55 57
50
45
• Revenue from heart center grew YoY because
of new sites at Thonburi 2 Hospital and
Phatthalung Hospital.
2Q17 3Q17 4Q17 1Q18 2Q18 8
Thonburi Bamrungmuang Medical Center
• Renovation progress is on track.
• Expect to start operation around 4Q18, with dental, IVF and Holistic Diabetes centers
• Expected EBITDA breakeven in 2019
• Potential to contribute revenue of THB 1 – 1.3 bn in 2019 with expected net profit
margin of 15 – 18%
Design Renovation progress
IVF Dental Holistic Diabetes center
Today’s healthcare
• Proactive
• Preventive
• Personalized
• Predictive
To support demand of medical Intra-oral scanner and Advanced technology for patients
tourism from China CAD/CAM can better serve with complication from chronic
patients travelling to Thailand diabetes. 9
Jin Wellbeing County - progress
Structure 65% Structure 100%
Architecture 15% Architecture 14%
Engineering 20% Engineering 20%
Exterior 0% Exterior 0%
Structure 35% Structure 30%
Architecture 0% Architecture 0%
Engineering 15% Engineering 15%
Exterior 0% Exterior 0%
10Jin Wellbeing County – Thonburi Burana Hospital
Reception area Patient room
Cafe
Thonburi Burana Hospital
• Rehab hospital for elderly who need special care, such as
chronic patients, Alzheimer etc.
• 54 beds to operate in 1st phase
• IPD rooms, OPD clinics, medical staff, services from
physical therapist, dieticians and psychologists
• Expect operation in February 2019
11Jin Wellbeing County – Jin Wellness Institute
Spa Activity room
Restaurant
Cooking studio
Jin Wellness Institute
Two 5-story buildings: 5,685 Sq.M. and 8,058 Sq.M. comprising
1. Integrative Wellness Clinic and Medical Spa – for customized health plan
2. Jin MediFit – Gym with professional instruction 4. Learning activities – Art & music therapy, cooking etc.
3. Life Enrichment – activities for mind and emotional balance 5. Nutrition and meal plan – customized healthy meals
12Jin Wellbeing County – Sales and marketing
Sales promotion
Target = 200 units within 2018
Current sales = 160 units - Ready-to-move-in campaign
- 6% yield guarantee for investors
More than 70% of customers - Activity booth
are 50+ years old and buy for
themselves. - Grand Age Management: classes and activities for senior
lifestyle
13Jin Wellbeing County – Award and program
Grand Age Management Program
Jin Wellbeing County won
• Best Senior Living Development
• Highly Commended for Best Universal
Design Development
from Property Guru Thailand Property
Award 2018, which is one of the longest-
history award in Asian property industry.Thonburi Senior Home – Comparison
Thonburi Senior Home Jin Wellbeing County Thonburi Health Village
Medical services Advanced Standard
Service technology Advanced Standard
Target group Medium - high Medium
Design for elderly/patients Well supported Well supported
Location North of Bangkok West of Bangkok
Price per square meter 85,000 -120,000 baht 62,000 baht
Approx. 4-6 mn baht 1.98 mn baht
Price per unit
(43 and 63 Sq.M.) (32 Sq.M.)
15Thonburi Health Village – Pracha Uthit
Investment value THB700mn
Land area 8 rai (4 rai for 1st phase)
Number of units 412
Swimming pool & Wellness Center
GFA 26,000 Sq.M
SFA 13,824 Sq.M.
Ready to transfer December 2018
Wellness center completion March 2019
16Thonburi Health Village – Pracha Uthit
Building E
Future project
Building A
206 units Future project
Building B
Building C 206 units
Wellness Center
Pracha Uthit Rd.
17Thonburi Health Village – Pracha Uthit
Room design - 32 Sq.M. unit
Universal design for all
wide corridor for wheelchair
18Thonburi Health Village – Pracha Uthit
Wellness Center
• Medical spa
• Salt chlorinator pool
• Gym and personal trainer
• Activity area
• Healthy cuisine restaurant
• Physiotherapy clinic
19Growth prospect
Thonburi
• Expected operation in 4Q18
Bamrung Muang
Jin Wellbeing
• Expected units transfer in 4Q18
County
Hospital &
excellence • Expected growth from new opportunities
both domestically and internationally
center
Hospital &
management
• Higher margin from excellence • Organic growth from volume, price and
asset-light model center medical intensity, with capacity expansion
management
• Potential growth from Thonburi Thungsong
• Strong core business Hospital and from Thonburi Health Village –
with stable growth Prach Uthit in 2019 onwards
Domestic
Domestic hospital &
hospital & business
business
• Ramping up after grand
Welly Hospital opening
• Less shared loss due to
more patients volume
Ar Yu Hospital • Expected operation in 3Q18
with loss shared to THG in
2017 first year
2018 onwards
20Financial information
212Q18 Financial Performance
Total revenue (mn THB)
+6.1% YoY +7.3% YoY
3,358
3,131
1,743 1,738 1,683 1,675
1,578
Medical Medical
service service
1,641 1,632 2,899 3,166
1,495 1,594 1,572 +5.2% YoY +9.2% YoY
80 3 100 87 83 101 227 184
2 19 6 2 5 8
2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18
Others Healthcare solution provider Medical service
• Revenue growth in 2Q18 continued, mainly from Thonburi 1 Hospital that saw increase in patient
volume due to new excellence centers and more collaboration with insurance company.
• However, slower growth was because of revenue decrease in overseas advisory business.
• Opening of heart center at Thonburi 2 Hospital contributes to improvement in IPD after having to partly
close a ward for renovating of heart center, and contributes to higher revenue for excellence center
business.
• THG saw good revenue growth in the first half of 2018 mainly from 1Q that compensated with lower
season in 2Q.
222Q18 Financial Performance
Gross profit (mn THB) -0.9% YoY +11.4% YoY
27.6% 29.1% 29.3% 28.4% 25.7% 26.0% 27.0%
434 508 508 478 814 907
430
2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18
Gross Profit GP Margin Gross Profit GP Margin
EBITDA (mn THB) -5.3% YoY +19.4% YoY
16.7% 19.1% 18.1% 20.7% 16.0% 17.8%
14.9%
333 348 500 597
263 314 249
2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18
EBITDA EBITDA Margin EBITDA EBITDA Margin
Net profit-parent (mn THB) -45.0% YoY +2.2% YoY
8.3% 9.8% 9.1% 9.4% 7.2% 6.8%
4.3%
171 158 158 225 230
131
72
2Q17 3Q17 4Q17 1Q18 2Q18 1H17 1H18
Net Profit -Parent NP Margin Net Profit -Parent NP Margin 232Q18 Operational statistics – TH1, TH2, RYD
Revenue mix – OPD vs IPD Revenue breakdown by payors
Others 1%
Corporate 5%
54% 54% 55% 55% 54% 54%
Insurance
14%
46% 46% 45% 45% 46% 46%
Self pay 81%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
% OPD Revenue % IPD Revenue
OPD utilization IPD utilization
71%
68%
65% 63% 65%
60% 60% 61% 61% 60% 60% 61%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
242Q18 Operational statistics – TH1, TH2, RYD
OPD sequence (‘000 sequences) IPD occupancy (‘000 bed days)
+4.4% YoY +2.8% YoY
277 41 38 39
260 260 258 36 34
243 247 35
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
TH1 TH2 RYD TH1 TH2 RYD
Pay per sequence (baht) Pay per bed day (baht)
+2.8% YoY +3.9% YoY
21,259
20,363 19,848 19,609
18,868 19,435
2,336 2,386 2,383 2,398 2,459 2,452
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Approx. THB21,000 – 24,000 for TH1 and TH2,
Approx. THB3,000 for TH1 and THB1,700 for TH2 and RYD
and THB13,000 for RYD 252Q18 Capital management
Capital structure (mn Baht) Dividend
On 24 April 18, AGM approved
ST Loan
dividend payment for 2017 performance at
Equity
232
1,720 12% LT loan THB 0.40/share = 56% payout
2%
28%
24%
Dividend policy:
3,451 3,252 not less than 40% of net profit
64% 70%
35 37
• XD 8 Mar 18
4Q17 IBD Interest 2Q18 IBD Interest
2Q18
4Q17 • Payment date 21 May 18
Non-current Current
Gearing ratio Interest coverage ratio (x)
5.7 5.3 5.4
IBD / EBITDA Covenant: 1.2x
0.8
0.6
2015 2016 2017 2Q18 2015 2016 2017 2Q18
26“Lifetime health guardian for all”
For more information, please contact IR department.
Email: ariya.si@thg.co.th
Tel: +6695-3705728
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