PT Siloam International Hospitals Tbk - 1Q19 Results 2019 Indonesia Hospital of The Year - Siloam Hospitals
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
SiloamInternational
PT Siloam InternationalHospitals
HospitalsTbk
1Q21 Corporate Presentation
2019 Indonesia Hospital of The Year
1Q19 Results
Global Health and Travel
Siloam Overview
Key Investment Highlights
Strong focus on corporate Largest private hospital networks in
governance and Indonesia spread across 26 cities
sustainability initiatives 06 01 throughout the entire archipelago
Sustainable growth strategy Acknowledged leader in key
and highly qualified 05 02 medical specialties leading to
management best-in-class revenue per bed
Significant turnaround in Strong improvement in all aspects of
04 03
ramping up hospital financial results since the
performance consolidation strategy in 2019
3
A Brief Introduction on Siloam Hospitals Group
Vision
Godly Reach Scale International
Compassion Quality
Mission
40 Hospitals across Indonesia “The trusted destination of choice for
Represented in 4,635km across Indonesia, holistic world class healthcare, health
50% of the landmass and 84% of national GDP education, and research”
4Siloam Hospitals - Largest Private Hospital Network in
Flagship BPJS
Mature Ramping Up
Indonesia Covering 50% of Land Mass Distinct
3,726
Medan Operational
Jakarta & Greater Jakarta Beds
Manado
1 3 4
2 7 8
Paal Dua
3,342 GPs,
6 5 Palangkaraya
9 Balikpapan Specialists
Jambi
Palembang Ambon and Dentists
1. Lippo Village 6. Kelapa Dua Banjarmasin*
2. RSUS 7. Mampang
3. Kebon Jeruk Lubuk Linggau Bangka
4. MRCCC 8. ASRI Belitung Makassar Buton 7,571
9. Cinere
5. TB Simatupang Surabaya BIMC Kuta Nurses and
West Java & Nusa Dua Mataram
Jember Medical Staff
1. Hosana Bekasi
9 Labuan Bajo Kupang
1 5 8 2. Lippo Cikarang
2 Denpasar
3 3. Bogor
4 6
7 4. Purwakarta 30 Siloam
5. Cirebon
6. Syubannul Wathon (Magelang) Clinics: (6 in
7. Yogyakarta Papua)
Data 31 of March 2021 8. Semarang
*Operational and financial data excluding Siloam
Banjarmasin (opened in May 2021) 9. Bekasi Timur & Sentosa
5Acknowledged Leader in Medical Practices
Leader in the Following Specialities Best in Class Average Revenue Per Bed
ARPOB FY2020 (IDR bn)
2.9
Urology Pulmonology Oncology 2.2
(Respiratory) 1.4
Neurology Cardiology SILO Hospital A Hospital B*
*FY20 Forecast
Medical Accomplishments
1st hospital in Indonesia to be certified with Joint-Commission International (JCI)
Siloam ASRI – conducted the 100th Siloam Hospitals TB Simatupang – received
successful kidney transplant surgery Gold Status from World Stroke Organization
(WSO) in handling stroke patients
6Financials Update
1Q21 Results At a Glance
Revenue increased EBITDA grew Net Profit increased Free Cash Flow increased to
32.5% 59.2% 672% IDR510bn
to to to growing
IDR1,912bn IDR483bn IDR150bn 73.4%
in 1Q21 in 1Q21 in 1Q21 in 1Q21 vs 1Q20
Average Revenue per Occupied Beds grew
EBITDA Margin expanded to 32% in 1Q21 vs 1Q20
25.3% from 21.0%
in 1Q21 vs 1Q20
Strong Balance Sheet
NPAT Margin grew to with a very low gearing ratio of
7.9% from 1.3% 2.2%*
in 1Q21 vs 1Q20 in 1Q2021
8
*excluding effects of PSAK 73Financial Results Summary (1Q21 vs 1Q20)
Financial Results Summary (1Q21 vs 1Q20)
% : % growth
+59% +672% % : EBITDA Margin
+33%
21% 25% 1% 8% % : NPAT Margin
1,912
1,443 483
304
150
20
1Q20 1Q21 1Q20 1Q21 1Q20 1Q21
Revenue EBITDA NPAT
Average Revenue per Inpatient Days (in IDR mn) Average Revenue per Outpatient Visits (in IDR mn)
5.88 1.41
+66% +83%
3.54 0.77
1Q20 1Q21 1Q20 1Q21
9Sustained Improvement from Quarter to Quarter since COVID Recovery from
Q3 2020
EBITDA and Net Profit Margins are calculated by dividing EBITDA or Net Profit to Revenue
10Significant Cash Flow Improvement and Strong Balance Sheets Provides
A Solid Foundation for Growth
Operating Cash Flow (IDR bn) Free Cash Flow (IDR bn)
622 510
+49% +73%
417
294
+163%
158 +109%
1Q19 1Q20 1Q21 -26
1Q19 1Q20 1Q21
Cash and Cash Equivalent on Hand (IDR bn) Gearing Ratio (%)
+24% 1,126
907
4.5%
+189%
314 2.5%
2.2%
*excluding effects of PSAK 73
FY19 FY20 1Q21 FY19 FY20 1Q21
11Robust Turnaround of Ramping Up Hospitals to EBITDA Positive
Siloam’s ramping up hospitals continued to improve their performance on a consolidated basis recording EBITDA of 138 billion
in the first quarter 2021 compared with a 14.5 billion rupiah loss in the first quarter 2020. Management are continuing to drive
operational improvement through effective revenue growth and cost management strategies. Excluding the COVID dedicated
hospitals, EBITDA of Siloam’s ramping up segment is still positive. We expect these hospitals to continue growing in profitability.
EBITDA of Ramping Up Hospitals (in IDR bn) EBITDA of Ramping Up Hospitals (in IDR bn)
187.4 138
-28 -14.5
-38.5
-73.2
-126.2 -144.6
FY17 FY18 FY19 FY20 1Q18 1Q19 1Q20 1Q21
12Revenue Definition Improved to Aid Comparability
Revenue definition has changed in 2021 and the material impact is that only professional (i.e.
doctor) fees that represent SILO’s entitlement are recorded as revenue. This resulted in most Doctor
Fees to be excluded from revenue and the equivalent amount is also excluded from the cost of
revenue. There is therefore no impact on EBITDA or Net Profit.
This brings SILO in line with other Indonesian hospital operators and also more fairly reflects the
interpretation of accounting standards.
Financials
1Q2020 1Q2021
(IDR mn)
Before Adjustment After Before Adjustment After
Revenue 1,876,316 -433,070 1,443,246 2,298,744 -386,657 1,912,117
Cost of Revenue -1,247,381 433,070 -814,311 -1,390,965 386,657 -1,004,308
13Successful Renegotiation of Rental Agreement
Siloam has successfully renegotiated the rental agreement for 14 Siloam hospitals (11 with Lippo Karawaci, 3
with other third party) and secured rental of these hospitals for 15 years from 2021. This represents a key
milestone to improve certainty on hospital rentals and allows Siloam to secure the rental of these strategic
hospitals for another 15 years at a market competitive rate. The rental expense will be measured as a percentage
of hospital revenue and adjusted annually as shown in the table below ranging from 6% of revenue in 2021 to
6.5% by 2027 and beyond.
From an independent market study, management concluded that the current rental rate for these properties are
below market value. The re-negotiated rental structure, beyond providing certainty, is also economically beneficial
to Siloam compared to the alternative of allowing these leases to expire naturally then re-based at the prevailing
market rate of the time.
14Business Update
Siloam’s Response to the COVID-19 Pandemic
COVID-19 in Indonesia – Historical Cases
MONTHLY COVID-19 CASES IN INDONESIA
27 Mar 2020 – 29 Apr 2021
No. of Confirmed Cases (000) Cumulative Cases (000)
1,800
1,663
1,600 1,511
1,400 1,335
1,200
1,078
1,000
800 743
600 539
410
400 287 335
256
175 204 177
123 129 152
200 108 112
2 56 66
10 26
-
MAR-20 APR-20 MAY-20 JUN-20 JUL-20 AUG-20 SEP-20 OCT-20 NOV-20 DEC-20 JAN-21 FEB-21 MAR-21 APR-21
17Creating Clean and Safe Environment for Our Patients
Siloam promotes a clean and safe hospital initiative by
building trust and assurance for both patients and staff.
Through the implementation of strict safety protocols and
procedures, we can ensure maximum safety inside our
hospitals. We follow a strict hygiene protocol for all our
patients.
Siloam have 4 dedicated hospitals to treat COVID while all
other hospitals in Siloam’s network are dedicated for all
other medical needs.
Comprehensive Safety Protocols
• PPE usage
• Specimen handling
• Contact tracing
• Area Zoning
• Triaging & Screening
• Covid clinical flow
• Non-covid clinical flow
• And many more
18Ensuring The Safety of Our Patient and Staff Using Global Best Practice
and Protocols
Creating COVID Task Force
Siloam management CEO
implemented a COVID
Task Force to coordinate Nursing Clinical
duties and Director Director
responsibilities to
ensure that we could Clinical
Laboratory
KD Supplies & Human
External
Manage- FMS Communi-
rapidly and effectively Oversight
ment
Operations Equipment Capital
cation
respond to the
• Patient • Gatekeeper • Staffing • Procurement • Facility • Hardship FK & FON
pandemic. management • Policy and (RMO, Nurse, sourcing renovation package Manage-
• Staff flow allied health) • Centralized • Tents • Regular ment
management processes • Policy & flow stock communi-
• Specialists • COVID processes cation
management Testing • Staff
• Government management management
and doctor
relations
19Ensuring The Safety of Our Patient and Staff Using Global Best Practice
and Protocols (Cont’d)
Siloam provide continuous training Extensive Trainings and Education
and education for all employees to
ensure they are updated with the
latest protocols regarding COVID.
Siloam hospital staff wear
protective attire accordingly to the
infection risk zone. Zone 1 being
the low risk and Zone 3 being the
highest risk of infection Routine Staff Testing and Ensuring Full Supply of PPE
Employees are tested regularly to
safeguard them and our patients Zone 1 Zone 2 Zone 3
while performing their daily duties
20Prioritise Availability of COVID Testing for Indonesia
Antibody Antigen Molecular
Molecular Isothermal
Rapid Antibody Test Immunology Test Rapid Antigen Test RT-PCR
(ID Now)
Coming Soon:
Serology Qualitative Serology Quantitative Swab RT-PCR
Saliva RT-PCR
Siloam Cumulative Rapid and Serology Testing (‘000) 2,157
1,988
1,808
1,528
1,091 1,281
894
653
445
108 264
30
>2.1mn Rapid and Serology tests
done Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar
Siloam Cumulative PCR and Isothermal Testing (‘000) 342
302
262
212
156
121
93
43 62
>340,000 PCR and Isothermal tests 6 13 27
done Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar
21Siloam Hospitals are Well Equipped to Treat COVID-19 Patients
>340,000 40 15
First in Indonesia to
launch Isothermal
Molecular tests.
PCR Specimens Processed Hospitals available to Sites with PCR labs
Available in all 39
as of 31 March 2021 take PCR samples Siloam hospitals
Clean Hospital
Medan Covid-19 Treatment
Jakarta & Greater Jakarta
Manado (2)
1 3 4
2 7 8
6 5 Palangkaraya
9 Balikpapan
Jambi
Palembang Ambon
1. Lippo Village 6. Kelapa Dua Banjarmasin*
2. RSUS 7. Mampang Lubuk Linggau Bangka Belitung
3. Kebon Jeruk 8. ASRI Buton
Makassar
4. MRCCC
5. TB Simatupang 9. Cinere Surabaya
West Java, Yogyakarta Jember Mataram
1. Bekasi (3) Labuan Bajo Kupang
1 2. Lippo Cikarang Denpasar (3)
2 5 8 4. Purwakarta
3 3. Bogor
4 6 5. Cirebon
7 6. Syubannul Wathon (Magelang)
7. Yogyakarta
8. Semarang
Data 31 of March 2021
*Operational and financial data excluding Siloam Banjarmasin (opened in May 2021) 22Continued Investment to Increase COVID Treatment Capacity
Appoint 4 Hospitals Dedicated to COVID Patients
Existing Units New Hospitals in 2020
SILOAM HOSPITALS KELAPA SILOAM HOSPITALS PAAL DUA SILOAM HOSPITALS MAMPANG SILOAM HOSPITALS AMBON
DUA MANADO
1,035 1,793
COVID Bed Capacity COVID Bed
2020* Target Capacity
18,129 COVID Patients Treated
3,106 2,911
2,172 1,868
1,355 1,514 1,389
709 689 928 994
475
19
March April May June July August September October November December January February March
*data as of 30 December 2020 23Siloam COVID-19 Vaccination Drive
Indonesia Vaccination Plan
Minister of Health press conference, 08-Feb-2021
Notes:
1. Vaccination is first prioritized for healthcare personnel, then for other individuals aged 18-59 years.
2. Healthcare worker over 60 years old will received vaccination per 08-February 2021. 2nd Dose will be given 1month prior 1st dose
3. Individuals over 60 years old will receive vaccination after the vaccine safety data is available (as written in the EUA or in the phase III clinical trial report).
4. Vaccines can be given to recipients with well-controlled comorbidities: pending criteria from ITAGI (Indonesian Technical Advisory Group on Immunization) or other experts). 25Siloam’s Vaccination Drive
No. of People Vaccinated as of 26 Vaccination Locations Outside Hospital Units Vaccination in Hospital Units
April 2021: No Hospital Unit Locations No. HU No. HU
1 SHG Ministry of Maritime Affairs and Fisheries (SHG) 1 SHLV 17 SHDP
113,394 2
3
SHG
SHKJ
Ministry of Trade
Lippo Mall Puri
2
3
SHKJ
MRCCC
18 BIMC KT
19 BIMC ND
Type of vaccine: 4 SHTB Lippo Mall Kemang 4 SHTB 20 SHLB
5 SHLV MaxxBox LV 5 SHASRI 21 SHKP
Sinovac & Astra Zeneca 6 SHCN Depok Town Square 6 SHMA 22 SHAB
7 SHLC Meikarta District 1 7 SHLC 23 SHMN
Vaccine Participants: 8 SHYG Lippo Plaza Jogja 8 SHBT 24 SHPD
1. Ministries of Indonesia 9 SHDP Lippo Plaza Sunset 9 SHBS 25 SHMK
10 SHMN LP Manado 10 SHST 26 SHPR
2. Elderly (60+) 11 SHPL PSx Mall - Palembang Square Extension 11 SHBG 27 SHPL
3. Public Officers & Health Workers 12 SHBG LP Keboen Raya Bogor 12 SHPW 28 SHLL
4. Teachers 13 SHKP Lippo Plaza Kupang 13 SHCB 29 SHJB
14 SHBT BluPlaza 14 RSU SW 30 SHBB
5. Religion Leaders 15 MRCCC GRII Kemayoran 15 SHYG 31 SHMD
6. Small, Medium Enterprises (SME) 16 SHTB JPCC 16 SHSB
17 SHMN UNSRAT
18 SHLV Angkasapura
COVID-19 Vaccination for Siloam Healthcare Workers COVID-19 Vaccination for Elderly (60+) in collaboration with Lippo Malls
26Siloam Hospital Digital Initiatives
Telemedicine – Siloam at Home by AIDO Health
Siloam has invested in its digital medicine capabilities. We provide a telemedicine platform called AIDO which our patients can use to consult with Siloam's doctors in the
comfort of their homes. This application also facilitates pharmaceutical purchases from Siloam via e-prescriptions and delivery services.
Available in 28 Hospitals as of Top Consultations Contribution
March 2021 Internal Medicine 29%
(vs 9 hospitals in April 2020) Psychiatry 16%
Respiratory 8%
1,074 Doctors Participated as Clinical Nutrition 8%
of March 2021 Neurology 7%
(vs 629 doctors in April 2020) Cardiology 6%
Paediatrics 6%
>15,000 Total Consultations up What’s Next:
to 1Q2021 1. Open access to more payer for Cashless experience
(vs 490 consultations in April 2020) • Collaboration with Corporate and Insurance customers
2. Enhancing feature & experience:
• Single point to maintain doctors schedule through MySiloam
• Patient confirmation through WhatsApp in addition to email and
>7,000 Total Pharmacies application notification
• Video call directly on AIDO application
Deliveries up to 1Q2021 • Status of Pharmacy (Pending Payment, In Process, Delivery
(vs 142 deliveries in April 2020)
on the Way)
• Customer Rating and Feedback Feature
28Hospital Information System (HIS)
Siloam has integrated a Hospital Information System which enable us to leverage the advantage of having the largest private hospital network
with some of the best expertise in Indonesia. This system manages some of the most crucial functions such as billing management, patient
management, back office management and clinical system.
Back Office Management - Electronic
Patient Management - Electronic Medical
Patients Management - HOPE System Resources Planning (ERP) and Clinical
Record (EMR) System
HOPE system manage patient information With the implementation of EMR, Siloam can Through implementation of ERP, Siloam is able
from all of our patient channels (My Siloam, have better patient continuity of care by to take benefits of technology including
Call Centre, Website) including administration, enabling our doctors and caregivers to access operate as a group via the single platform,
appointments and billing cycle. It allows for a digital patient records. especially in group purchasing, standard
single patient ID across the Group. system process and enable efficiency through
process improvement and automation.
Patients Channels
MySiloam App Electronic Medical Record (EMR)
Doctors and Nurses
Patients Management
Siloam Website
HOPE System
(www.siloamhospitals.com) Electronic Resources Planning (ERP)
Back Office Management
Call Center – 1 500 911
29Commercial Initiatives
Bringing Back Doctors
During the 1st quarter 2021
100%
of doctors were practicing
compared with January 2020
During the 1st quarter 2021
practicing hours were
Ensuring that doctors have the best PPE to 91%
safeguard their daily duties and socializing compared with January 2020
Siloam’s strict policies and protocols for risk
management regarding COVID
31Revenue Growth by Payer Group (IDR bn)
% Contribution to NGOR (1Q20 vs 1Q21)
420 Out of Pocket Corporate + Insurance BPJS MoH*
351
19% 759 18%
40% 35%
797 In 2020, reimbursement for COVID treatment
261 11%
is labelled MoH
41%
766 816 36%
1Q20 1Q21
Payee Group Contribution to NGOR
+19% +5% +5% +20% +18% +7% +12% +4% -26% +70% +41% +41%
% % growth
759 797 766 816
607 724 649
539
339 351 420
302 261 299
124 211
1Q18 1Q19 1Q20 1Q21 1Q18 1Q19 1Q20 1Q21 1Q18 1Q19 1Q20 1Q21 2Q20 3Q20 4Q20 1Q21
Out of Pocket Corporate + Insurance BPJS MoH*
*Revenue from COVID reimbursement is labelled ’Ministry of Health (MoH)’
32Siloam’s Strategy and Initiatives
Siloam 4-Pillar Strategy
Core Growth
Managements have a strong focus on maximizing the value of our existing assets. To ensure that we maximize the value of all our hospitals we
must always prioritize the patient experience to ensure that our patients have a best-in-class service. We strive to recruit, develop and retain the
best doctors in Indonesia to ensure that our patients are being taken care of by highly skilled medical professionals. We proactively look for
partnerships that can add value to our existing business and create new opportunities. We regularly review each of our hospitals with an eye to
optimize efficiency/profitability and productivity. In addition to medical staff Siloam has firm human capital policies and procedures to ensure that
we recruit and retain high caliber talent to run our business.
Clinical Programs
Siloam invests heavily in clinical programs which we believe will create the most value for both patients and our stakeholders. We establish centres
for excellence at our hospitals which are medical programs where we offer holistic and thorough medical expertise in a medical specialization. As
our centres of excellence become recognized as experts in certain medical fields then the number of patients, we begin to receive patients coming
from areas outside the hospital's traditional geographic catchment areas. Siloam leverages new and innovative technologies to improve access and
affordability of quality care across its extensive network.
34Siloam 4-Pillar Strategy (Cont’d)
Network Expansion
Expanding our hospital network isn’t only done by opening new hospitals but also by seeking to meet patient demand in our existing hospitals.
We seek to maximize the utilization of hospital floor area. This can be done by renovating existing hospital units or opening new wards. In
addition to maximizing floor space used we seek to maximize the utilization of equipment to ensure that our technology being effectively utilized
across our hospital network. Siloam will continue to selectively open new hospitals through strategic developments and acquisition
opportunities.
Digital Health
Siloam collaborates with leading technology partners to build world-class ICT capabilities. We use digital health platforms to continue improving
patient safety, patient satisfaction and operational excellence. To support our target to become the most technologically advanced hospital in
Indonesia, we continue to invest in building our ICT Infrastructure that is resilient, robust, reliable, and secure. In addition, we are also investing
on our people to build a world class IT organization following the standard and best practices of leading IT organizations.
35Revenue Growth Initiatives
Procedure Packaging
We are focusing on procedure packaging, so designing packages with a set price. This provides a positive experience for
the patient as it helps to avoid bill shock. From a operations perspective we ensure that the packages are uniform across
our whole network. So the pharmaceuticals and consumables are utilized for the package right across Siloam’s network.
This uniformity ensures that costs can be effectively forecast and managed.
Value Based Pricing
Siloam has expanded our gross margins through strategic product design and price management. We reviewed the pricing
across our hospital units and we found that despite offering premium services we were at times pricing at rates that were
below market. Having reviewed pricing across our network we have been optimizing pricing for all our products and service.
Operational Effectiveness & Sales Team Engagement
Siloam has implemented more process automation of sales peoples KPI monitoring so that sales people’s activity and
performance is monitored in real time. We have also automated sales reporting to significantly reduce the time spent by
sales people on administration so that they have more time to perform their key role which is business development. While
relatively simple initiatives which require relatively small CAPEX, these initiatives have quickly had a positive impact on
sales peoples’ productivity. We have also refined and automated part of our referral process to reduce leakage due to
system errors and to ensure uniformity across all our units with referrals.
36Revenue Growth Initiatives (Cont’d)
BPJS Optimisation
We have focused on investing in providing BPJS services which are sustainable for our business. Dedicated task
force has been established to optimise the efficiency of BPJS service delivery and improve margins.
Equipment Utilization
Siloam has invested heavily in our medical equipment so we have a program in place to ensure that our
equipment can reach its maximum utilization and thus improved return on investment. We established a
dedicated team focusing on the 4 main aspects for improving utilization:
i. Raise internal doctor awareness with active monitoring and focus on referral rates
ii. Focus on setting up referral network for physicians and small hospitals through better marketing
iii. Ensure equipment selection and target specialty mix are aligned
iv. Data driven pricing
Capacity Utilization
There is a focused approach to drive utilization across all hospital metrices governing occupancy, equipment
utilization, diagnostic capacity, radio therapy and radiology.
37Cost Management Initiatives
Material Cost Reduction
We have embarked upon a material cost reduction project. This is a long term project established in 2019 and we are
starting to harvest positive results. This project involved consolidating the number of pharmaceutical and consumer goods
providers. We also reduced the number of pharmaceuticals and consumables are used at Siloam. At the same time we
began centralizing procurement processes to head office. We also established a data-driven weekly monitoring process to
ensure compliance across the network. By taking these steps we could commit to provide greater volumes to reduced
number of suppliers to optmise buying price. We expect this project to contribute savings of between 25 to 50 billion in
2021. As the project becomes increasingly effective the annual savings are expected to increase.
Demand Planning & Inventory Management
We designed and implemented robust standardized demand planning and inventory management processes, systems
and organization. We have set up a data driven tool to create more accurate and reliable demand forecasts based on
actual consumption. We are driving change in behaviour of front and back office staff (at pharmacy stores, lab,
purchasing, etc.) via changes in KPIs and performance management. We are making significant improvements for our
demand planning and inventory management processes. Our aim is to substantially lower our inventory days for improved
capital management and a reduction in wasted consumables due to expiry.
38Cost Management Initiatives (Cont’d)
OPEX Optimization
We are reviewing our staffing efficiency across our units to ensure that each hospital is using the optimal number
of staff. We have reviewed our procurement processes for outsourced processes to reduce our costs. We have
implemented a review and process change for utilities usage across all our hospitals with the aim of reducing their
costs at each of our units.
CAPEX Management Improvement
Siloam has set up and formalized an investment committee which is in charge of reviewing and approving any
CAPEX above 10 billion rupiah. The members of the investment committee conduct a stringent process to ensure
that Siloam’s investments are highly productive.
39Improving Patient Experience
Patient Experience Program
Siloam always strives to give consistent healthcare delivery through a patient centered approach that align with Siloam's values: Stewardship,
Integrity, Compassion, Respect and Innovation.
Siloam has introduced program named 'Saya SIAP' (I’m Ready) which embraces a patient centered culture:
• Sigap (Agile): provide the best service for anyone, anytime and anywhere
• Informatif (Informative): provide accurate and reliable information
• Apresiasi (Appreciation): show respect to fellow colleagues and patients
• Peduli (Care): showing high level of care to realize a culture of togetherness
Growth & Integration & Financial
Quality & Safety People & Culture
Development Efficiency Vitality
Deliver high quality, safe, Empower team members to Create program growth, Leverage technology and Improve the financial
consistent, and coordinated create an exceptional achieve physician alignment optimize operational performance of Siloam
patient care patient experience through and expand partnerships processes to deliver high Hospitals’ services while
engagement and and affiliations throughout value service. preparing for alternative
leadership. the geographic area payment methods.
The culture based on our #sayaSIAP (I'm ready) program is the foundation of the expected service behaviour of Siloam Hospitals. We’ve also
embedded the culture of GEMS (Going the Extra Mile Service) for all employees to be able to provide maximum level of service quality in their daily
duties.
40Improving Patient Experience (Cont’d)
Out-Patient Scorecard
Siloam is committed to deliver high levels of operational excellence in every healthcare service and treatment we
provide. To ensure we consistently provide patients with the best patient experience, we launched the Out-Patient
Transformation program to improve our operational excellence which includes amongst other initiatives, reducing
consultation waiting time.
We have improved the consultation waiting time by evolving the patient admission process for outpatients from the
previous walk-in first in first served process towards an appointment-based process. For example, in some of our
hospitals in Greater Jakarta, after applying this program we have reduced the average waiting time from 1 hour 21
minutes to 41 minutes or a 37% decrease.
We will continue to optimize our processes to ensure a high quality patient experience at all stages of the patient
journey.
41Corporate Governance Initiatives
Investment Committee: Robust Capital Allocation Controls
• All Investment
Plan/Projects above
Roadmap (Gates) For New Hospital Openings
IDR10,000,000,000
(ten billion Rupiah) SITE SELECTION PLANNING CONSTRUCTION MTC OPERATION
and all new hospital Site identification and prioritisation Measuring, Monitoring,
based on ext. research Legal, permits and licenses (incl. BPJS)
openings Reporting & Control
(c.9-12 months)
(regardless of Expanded feasibility study incl. local MTC & Day 1 plan
Site design and planning
amount) must be stakeholder analysis Development & Execution
presented to the Initial projection development Detailed budgeting
Post
Investment to inform decisions and design (Capex & Projections)
Implementation
Committee for Site Site fit-out & preparation
Review (PIR)
review and construction (incl. equipment, purchasing)
subsequent CEO recruitment*
(starts c.6 months before opening)
approval by the BOC.
Doctor recruitment
• Each new hospital (c.6 months pre-opening)
opening has to go Other recruitment Training
through a five stage (starts c.6 months (c.3 months pre-
pre-opening) opening)
review processes as
presented in the Marketing plan implementation
(c.3 months pre-opening)
table on the right.
Local stakeholder engagement
43Investment Committee: Robust Skills and Highly Experienced Members
Members of Investment Committee
Tevilyan Yudistira Rusli - Chairman Peter John Chambers – Member
Yudistira serves as the CFO of PT Lippo Peter’s background includes over 25 years of experience
Karawaci Tbk and PT Lippo Cikarang Tbk. in finance, telecommunication and investment oversight.
He has over 20 years of experience in He has occupied senior positions in various companies
Unilever, a Fortune 500 company, where he including Coopers and Lybrand, Axiata and Farallon
held the position of Chief Auditor and CFO. Capital (as an advisor). His experience include serving a
number of Boards which have included PT XL Axiata and
Indomines Pty Ltd. He has also chaired their respective
Audit, Remuneration and Risk Committees.
Atiff Ibrahim Gill – Member Dr. dr. Andry, MM, MHKes – Member
Atiff is a member of the Operations Team in Dr. Andry serves as board member of the Indonesian
CVC Asia. Prior joining CVC, he was the CEO Hospitals Association (PERSI), Indonesian Mediator
of Lacoste China. Prior to that, he has Association (AMINDO); and as lecturer in Pelita Harapan
served in multiple companies in Asia in University and Esa Unggul University. He was on the
senior executive positions. He holds a BSc Management Team of Mitra Keluarga Hospital Bekasi
degree from London University and is a and was the CEO of Siloam Hospitals Group. He is
postgraduate from Oxford University. currently an advisor for Siloam Hospitals Group.
44Strengthened Audit Committee
Siloam has revamped its audit committee. The current audit committee is chaired by Peter Chambers,
with a strong reputation for administering good corporate governance. The audit committee has also
invited Charles Rigoux from Gateway Partners, who brings with him an extensive international
investment experience. In addition, the audit committee also invited Ir. Achmad Kurniadi who has
served in Indonesia Investment Coordinating Board as Managing Director.
45Corporate Governance: Robust Related Party Transaction Policy
It is our belief that capital All vendors go through a KYC All Related Party Transactions
allocation decisions should be process and related parties (RPT) are reported to Siloam’s
made in the best interests of all need to be registered before Audit Committee and reviewed
shareholders. Conflict of interest transactions with them can be on a quarterly basis.
decisions that do not benefit all carried out. Further internal
shareholders fairly, be it real or processes are then applied
perceived, need to be avoided. depending on amount to ensure
the transactions are arm’s
To achieve this, Siloam has length and goes through
substantially strengthened its multiple level of approval and up
related party policy. to the BOC where appropriate.
46Employee Share Option Plan – Aligning Management With Shareholders
Siloam has purchased 10,000,000 shares as part of an Employee Share Option Plan. The purpose is
to align the executive managements remuneration with share price growth. Siloam’s C-suite, board of
management and select division heads who have critical roles at Siloam have been awarded a place
in the option plan. This share option plan will provide a significant incentive for management to meet
their KPI's and thus drive share price growth.
47Finance Transformation Project
Finance has successfully implemented 50 transformation initiatives in 2020 with the aim of strengthening
controls and improving efficiencies. These included activities such as vastly expanding the delegation of
authority matrix, a greatly enhanced accounting manual, and implementation of PR/Vendor portal to
streamline procurement and payment processes.
Implementation of an enterprise resource
planning (ERP) system and mandating its
use by our operations and suppliers.
Financial Consolidation: Automated Financial
Consolidation Tools used across all Siloam
Hospitals
Standardization of group accounting &
finance policies
48Siloam Sustainability Initiatives
Siloam Sustainability Initiatives
Nursing and Scholarship
Siloam’s core values revolve around having a positive impact on society. Quite simply we love Indonesia and we
love Indonesian people. Siloam's role is central to improving the quality of life of society through great medical
care. To provide great medical care we need well trained medical personnel. Siloam invests every year in
Indonesia’s medical skill base by providing scholarships for medical and nursing training.
In 2020, we provided 472 scholarships to men and women right across the country and we focus on the areas
where there is a significant shortage of skills. We take people from these communities and put them through
nursing school. We then provide work for them after they finish their studies.
This program increases the countries medical skill base, particularly in those regions with large shortages. It
provides training to those who otherwise would be unlikely to be able to afford a university education. And it
ensures Siloam has a strong pipeline of medical talent available for deployment around the country. This
wonderful cycle benefits both society as well as our shareholders.
50Siloam Sustainability Initiatives
Providing Quality Healthcare to All Indonesians
Siloam understand the demand of healthcare in each area in Indonesia is different and healthcare is one of the challenges for all countries.
Effective healthcare system is essential in providing care for communities in need and overcome the problem of inadequate facilities. We have
opened hospitals in areas that are in need of healthcare providers, especially in smaller cities in Indonesia. We strive to achieve our vision to be
reach as many Indonesian as we can.
In areas where we don’t have a presence yet, we have built a network of Siloam Clinics. As of 2020, Siloam has a network of 30 standalone clinics
with 6 of them are located in Papua. The communities around which Siloam operates have always been a source of motivation and inspiration to be
able to strive toward excellence and affirm Siloam’s values.
Sustainability Report
We genuinely believe that Siloam’s CSR initiatives are not in conflict with but instead enhance shareholder value. Siloam makes a substantial
investment in Indonesian society however there is still more we can do. Siloam commissioned an ESG screening company called Ecovadis to
analyse and provide feedback on our ESG framework and where we can improve. Having reviewed the areas where we can improve the next step is
to implement the necessary framework to achieve our desired result. We have now engaged a global ESG partner to formalize our ESG framework
and they will be our partner for the next 3 years through design, execution and implementation. As part of this process we are also publishing
comprehensive sustainability reports. Siloam’s 2020 sustainability report will be available in 2Q21
51Siloam Transformation Team
Board of Directors
Darjoto Setyawan - President Director Caroline Riady - Vice President Director dr. Grace Frelita Indradjaja – Director
Darjoto brings with him more than 35 years Caroline started serving as Executive Dr. Grace was the Siloam Hospital
of experience in senior level management. Director of Siloam Hospitals Kebon Karawaci CEO and later appointed at
He was the Managing Director of Rajawali Jeruk where she was instrumental in Siloam Hospital Head Office as Chief
Group. Currently, he is the Independent growing the operational and financial Medical Officer. She serves as one of
Commissioner of PT Cita Mineral Indonesia performance. She is now currently the the board management in KADIN and
Tbk and PT China Life Indonesia as well as CEO of Siloam Hospitals Group PERSI
an advisor of PT Lippo Karawaci Tbk
dr. Anang Prayudi – Director Monica Surjapranata – Director Atiff Ibrahim Gill – Director
Dr. Anang began his career in the Monica started her career at Panin Atiff is a member of the Operations
Indonesian Armed Forces (Army) as Bank and was the CEO of Books & Team in CVC Asia. Prior joining CVC, he
Physician and International SOS with last Beyond. She was the CEO of RSUS and was the CEO of Lacoste China. He holds
position as Medical Director. He has served now served as Regional Executive a BSc degree from London University
as a Director in Siloam since 2011 Director of Siloam and is a postgraduate from Oxford
University
Ryanto Martino Tedjomulja – Director Daniel Phua – Director Mona Jonatan – Director
Ryanto started his career at Accenture with Daniel is a Certified Practicing Mona is a certified facilitator title from
last position as Managing Director. Before Accountant (Australia) with over 23 DI – USA, Clariden, Sean Delany,
joining with Siloam, he led companies in years’ experience in corporate finance, Stephen Covey, and John Maxwell. She
Indonesia, Singapore and Malaysia to business strategy, process tarted her career as a Quality Assurance
transform businesses improvement, and corporate Manager in Far East Trading Company,
governance with international USA, then became the Operation and
experience in Australia, Singapore and HR Manager in various companies in
Indonesia Holland, Vietnam, China and Indonesia
Diverse and robust Board of Directors’, bringing an extensive international experience to Siloam
53Key Management Staff to Support Transformation
Varun Khanna – Chief Commercial Officer Julie McCaughan –Chief Nursing and Quality
Varun is currently the Chief Commercial Officer of Siloam Julie is the Chief Quality and Nursing Officer of Siloam Hospitals
Hospitals, and has been leading the business for two years at Group. Julie has over 30 years of healthcare leadership gained
Siloam. Prior to Siloam, he has been a senior healthcare from her working experiences in Australia, China and Indonesia.
professional in India. He was the Co-Chair FICCI Health services Julie is instrumental in leading the quality and nursing
and Executive Vice President - Fortis Healthcare. Varun has transformation for the group. Julie has a masters in business and
previously served as the Managing Director/ CGM at BD (Becton nursing and is an international hospital surveyor which enables
Dickinson & Co) in India. He also served as the National her to implement global knowledge of hospital operations and
Executive Board Member of AMCHAM, Chairman – AdvaMed standards throughout Siloam.
India Working Group and Executive Committee, Co-Chair at FICCI
Health Services Committee and Secretary and Treasurer of
NATHEALTH. His remarkable feat in the health sector is captured
by many notable accolades, including the award for the Best
CEO in a Medtech Company 2015, ET Best Healthcare Brand
and Aon Best Employers 2016 for BD - India, among others.
Gabrielle Tironi – Director of Corporate Strategy Giselle Ley – Supply Chain Management
Gabrielle is the Director of Corporate Strategy in Siloam. He is Giselle is the Head Supply Chain and Program Manager for
the Portfolio Management Senior Advisor in CVC Capital Partner Demand Planning and Inventory Management improvement
Asia. He was the Advisor for M&A Strategy & Operations in PwC initiative in Siloam Hospitals. A year prior, she worked as Category
Italy and Singapore. He brings more than 10 years of Manager / Lead for Packaging and Indirect Materials & Services
international M&A Strategy & Operations Advisory in different in manufacturing industry. She brings more than 15 years of
cross-border transactions including Europe and Asia. experience in not only system work but includes business
improvement initiatives in Supply Chain, specifically data and
process improvement initiatives in contract maintenance,
materials requirements planning, material and service catalogue,
low-value procurement and invoice backlog clearing.
54Audit Committee: Independent with High Credentials Members
Members of Audit Committee
Peter John Chambers – Member Charles Rigoux – Member
Peter’s background includes over 25 years of Charles is an investment professional at Gateway
experience in finance, telecommunication and Partners, an investment firm focused on growth capital
investment oversight. He has occupied senior and special situations across markets in Southeast Asia,
positions in various companies including South Asia, the Middle East and Africa. Prior to joining
Coopers and Lybrand, Axiata and Farallon Gateway, he worked at Standard Chartered Bank in the
Capital (as an advisor). His experience include Financial Sponsors Group in Singapore, involved in the
serving a number of Boards which have origination and execution of M&A and Leveraged
included PT XL Axiata and Indomines Pty Ltd. Finance transactions in Southeast Asia.
He has also chaired their respective Audit,
Remuneration and Risk Committees.
Ir. Achmad Kurniadi, MBA – Member
Ir. Achmad has served in Indonesia Investment Coordinating Board (BKPM) with the last position as Deputy Investment
Cooperation. He was the Ambassador of the Republic of Indonesia in South Korea and was the Head of Investment in Trade
Office and Indonesian Economy in Taiwan. He obtained a Bachelor’s degree in Agronomy from Padjadjaran University,
Bandung in and Master of Business Administration from Yonsei University Graduate School of International Studies, South
Korea.
55Siloam Hospitals Board of Commissioners
John Riady - President Commissioner Dr Kartini Nurmala Panjaitan Syahrir - Independent Commissioner
John currently serves as Director of PT Lippo Karawaci Tbk and Dr. Kartini serves as a Senior Advisor for Climate Change Issues to the
various senior executive positions at Lippo Group companies Republic of Indonesia under Coordinating Minister for Maritime Affairs
commissioner of PT Matahari Putra Prima Tbk and PT Matahari and Investment. She is also the Indonesian representative to the
Department Strore Tbk. He holds the position of Editor in Berita Satu Advisory Board of ASEAN and was the ambassador of Indonesia for
Media Holdings and Jakarta Globe. He is also a member of Columbia Argentina, Uruguay and Paraguay when she was awarded the most
University’s International Advisory Board. prestigious title by the President of Argentina.
Andy N. Purwohardono – Commissioner Dr. Rosa C. Ginting - Independent Commissioner
Andy is a Senior Managing Director at CVC Capital Partners and Dr. Rosa currently serves as President Commissioner and Independent
heads their Indonesia office. Prior to joining CVC, he was the Commissioner of Cigna Indonesia since 2015. She was the President
President Director and the Head of Investment Bank of PT Morgan Director of PT Asuransi Jiwa Inhealth Indonesia where she led a the
Stanley Asia Indonesia for four years. Andy holds a BSc in Industrial copany to rapid growth. She bring more than 36 years of experience in
Engineering from Oregon State University and an MBA from University the life insurance industry.
of Texas, US.
Dr. Liem Suet Wun – Commissioner Peter J. Chambers - Independent Commissioner
Dr. Lim has more than 30 years of experience in healthcare Peter’s background includes over 25 years of experience in finance,
management. His last position was as the CEO of National Healthcare telecommunication and investment oversight. He has occupied senior
Group and Tan Tock Seng Hospital (TTSH) in Singapore. Dr. Lim has positions in various companies including Coopers and Lybrand, Axiata
substantively involved with the Nanyang Technological University and and Farallon Capital (as an advisor). His experience include serving a
Imperial College in London and was awarded the Public Service star number of Boards which have included PT XL Axiata and Indomines Pty
by the President of Singapore. Ltd. He has also chaired their respective Audit, Remuneration and Risk
Committees.
High Calibre Board Members with many years of professional experience in various industries
56Appendix
Final Dividend to be paid on May 28 2021
Total Dividend of Rp226bn was approved by the AGMS on April 28, 2021. Dividend will be paid on 28 May 2021.
Dividend Payment Schedule
Dividend Payout Ratio (in IDR bn) 2020 (subject to AGMS approval)
Net Profit 125
6 May
Regular Dividend 56
Cum Dividend
Payout Ratio 45%
Special Dividend 179
Total Dividend Declared 226
Total Payout Ratio 181% 7 May
Ex-Dividend
28 May
Cash Dividend Payment
58Siloam Hospitals Operational Results by Segment
Segment Flagship Mature Distinct BPJS Ramping Up
Well established Profitable with have high Operates in distinct niche More than 60% of
Hospitals opened in the
Description hospitals with high potential for further markets with high revenue is derived from
last 2-5 years
revenue and profitability capacity growth profitability profiles BPJS patients
No. of Hospitals 3 13 4 3 16
1Q21 6 (-43%) 17 (-45%) 1 (-57%) 7 (-44%) 10 (-14%)
IPD Admissions 1Q20 11 31 2 12 11
(‘000) FY20 27 (-39%) 75 (-35) 5 (-43%) 35 (-25%) 36 (+8%)
FY19 45 116 9 47 34
1Q21 28 (-33%) 73 (-30%) 3 (-52%) 27 (-34%) 48 (+42%)
IPD Days 1Q20 42 104 6 41 34
(‘000) FY20 118 (-30%) 286 (-26%) 13 (-46%) 122 (-23%) 142 (+34%)
FY19 168 388 24 158 106
1Q21 107 (-30%) 255 (-24%) 17 (-45%) 89 (-18%) 77 (-13%)
OPD Visits 1Q20 152 335 32 109 89
(‘000) FY20 432 (-32%) 926 (-28%) 73 (-35%) 379 (-9%) 281 (-4%)
FY19 639 1,290 113 415 294
Note:
Hospital units only, excluding clinics and non-hospital units 59Siloam Hospitals Financial Results by Segment
Segment Flagship Mature Distinct BPJS Ramping Up
Well established Profitable with have high Operates in distinct niche More than 60% of
Hospitals opened in the
Description hospitals with high potential for further markets with high revenue is derived from
last 2-5 years
revenue and profitability capacity growth profitability profiles BPJS patients
No. of Hospitals 3 13 4 3 16
1Q21 692 (+6%) 920 (+15%) 71 (-46%) 179 (+23%) 411 (+204%)
Net GOR 1Q20 652 800 131 146 135
(IDR bn) FY20 2,394 (-6%) 2,828 (-7%) 339 (-33%) 557 (+3%) 918 (+131%)
FY19 2,533 3,026 508 543 397
1Q21 536 (+10%) 745 (+23%) 54 (-45%) 149 (+35%) 355 (+257%)
NOR 1Q20 488 604 99 110 99
(IDR bn) FY20 1,840 (-3%) 2,221 (-2%) 255 (-34%) 430 (+6%) 756 (164%)
FY19 1,891 2,267 385 407 286
1Q21 145 (-14%) 244 (+45%) 15 (-62%) 33 (+114%) 138 (111%)
EBITDA 1Q20 169 169 40 16 -15
(IDR bn) FY20 591 (-0.2%) 710 (+19%) 50 (-64%) 49 (123%) 187 (+178%)
FY19 592 599 140 22 -145
Note:
EBITDA and Net Profit in 2020 calculated with the new accounting policy; 2019 numbers represent after one-off adjustment 60Siloam’s Strategic Growth to Take Advantage of the Market Potential
Flagship Mature Distinct BPJS Ramping Up
SH Hosana
SH Bogor
Owned SH Mataram
Hospitals SH Bangka
Belitung
SH
Balikpapan SH Jember RSU Kelapa
SH Ambon
SH Cirebon Dua
SH Lippo BIMC SH Lubuk SH
SH Jambi SH Asri RSU Syubbanul
Cikarang Nusa Dua SH Sentosa SH Mampang
Linggau Wathon Banjarmasin
1996 2002 2011 2012 2013 # 2014 2016* 2017* 2018 2019 2020 2021
SH SH SH SH TB SH
SH MRCCC SH Medan SH Buton SH Semarang SH Paal Dua
Lippo Village Surabaya Palembang Simatupang Yogyakarta
SH SH Labuan SH Bekasi SH Palangka
SH Cinere SH Bali SH Kupang
Kebon Jeruk Bajo Timur Raya
Leased SH Makassar BIMC Kuta
SH
Purwakarta
Hospitals
SH Manado
# IPO
RSUS/SHLV *Rights Issue
61Siloam Hospitals Segments
Total Cities: 25
Total Hospitals: 39 Total Cities: 25
Segment Flagship Mature Distinct BPJS Ramping Up
Description Well Profitable Operates in More than Hospitals
established with have distinct 60% of opened in
hospitals high niche revenue is the last
with high potential markets derived several
revenue for further with high from BPJS years
and capacity profitability patients
profitability growth profiles
No. of
3 13 4 3 16
Hospitals
62Operational Results per Month in 2020-1Q21
258.5 254.4
207.7 208.1
179.6 178.6 171.2 165.8
154.3 169.0 164.8 169.5 165.3
Outpatient 98.9 100.8
Visits (’000)
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar
24.6 23.1
19.9
Inpatient 12.9 13.1 13.8 13.9 13.6 14.7
12.0 12.5 12.7 12.3
Admissions 10.4 10.4
(‘000)
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar
63Top 3 Shareholders
PT Lippo Karawaci Tbk (Ownership as of 31 March 2021: 46.86%)
PT Lippo Karawaci Tbk (ticker: LPKR) is one of the major shareholder of Siloam.
Over the years, LPKR has significantly supported Siloam Hospitals in driving
profitability for the Company.
CVC Capital Partners (Ownership as of 31 March 2021: 26.18%)
CVC Capital Partners is another major shareholder of Siloam. CVC Capital
provide the management of Siloam with various expertise in many fields to
ensure Siloam reached its targets. CVC has 1 board representative in Siloam’s
Board of Commissioners and 1 Board of Director.
Marubeni Group (Ownership as of 31 March 2021: 4.99%)
Marubeni Group is a well-know large global companies with strong footprints in
various industries, including healthcare. In early 2020, Marubeni joined Siloam’s
shareholding with approximately 4.99% ownership.
64You can also read
