Indonesia’s Largest,
Fastest Growing,
World Class Hospital Group
Full Year 2013
Disclaimer
This presentation has been prepared by PT Siloam International Hospitals, Tbk (SILO ) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of SILO. No warranty ( expressed or implied ) is made to the accuracy or completeness of the information. All opinions and estimations included in this report constitute our judgment as of this date and are subject to change without prior notice. SILO disclaim s any
responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this presentation and neither SILO nor any of its affiliated companies and their respective
employees and agents accept liability for any errors, omission, negligent or otherwise, in this presentation and any inaccuracy herein or omission here from which might otherwise arise.
Forward – Looking Statements
The information communicated in this presentation contains certain statements that are or may be forward looking. These statements
typically contain words such as “will”, “expects” and “anticipates” and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this presentation. Factors that could cause actual results to differ include, but are not limited to, economic, social, and political conditions in Indonesia ; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulation and compliance cost; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for SILO developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits, and training, governmental and public policy
changes; SILO’s ability to be and remain competitive; SILO’s financial condition, business strategy as well as the plans and objectives of
Contents
Where We Are In Lippo Karawaci
01
Highly Experienced & Professional Management
02
2013 Siloam at a Glance
03
2013 Siloam Highlights
04
Our Operations
05
Where We Are In Lippo Karawaci
01
As of 31 Dec 2013
No. of Outstanding Shares : 23,077,689,619 Code : LPKR.JK ; LPKR IJ
LIPPO RELATED COMPANIES
28%
DEVELOPMENT REVENUE
RESIDENTIAL & URBAN DEVELOPMENT
•
Lippo Village
• Lippo Cikarang
•
Tanjung Bunga
• San
Diego Hills Memorial Park
• Kemang Village • The St. Moritz • City of Tomorrow
• Park View Apartments
• The Nine Residence
• Holland Village
• St Moritz Panakukang • Embarcadero
RECURRING REVENUE
HOSPITALS
COMMERCIAL
MANAGEMENT
ASSET
• Siloam Hospital
s
• Retail Malls
•
Aryaduta Hotels
• Town
Management
Services,
Leisure and
Restaurants
• REIT,
Mall & Hotel
Management
PUBLIC
Highly Experienced & Professional Management
Board of
Directors
dr. Gershu Paul
President Director
dr. Grace Frelita Director, Global Quality Development
Romeo Lledo
Director, Accounting and Finance
Prof. George Mathew
President, MRIN, UPH & UPHMS*
dr. Anang Prayudi
Director, Strategy and Development
S.Budisuharto
Director, Network and Marketing Development Group
Board of
Commisioners
Ketut Budi Wijaya
President Commissioner
Theo L. Sambuaga
Commissioner
Agus Benjamin
Commissioner
Ir. Jonathan L. Parapak
Independent Commissioner
Farid Harianto
Independent
03
16 Hospitals
12 Cities
3,700 Beds Capacity
1,200 Specialist Doctors
300 General Practitioners
3,600 Nurses and Allied Health Staff
2,300 Support Staff
11 Cath Labs, 13 MRIs, 18 CTs, 1 Gamma Knife
2 Linear Accelerators, 1 Cyclotron
Launching of Siloam Heart Institute and Yayasan Denyut Jantung
Winner of Sustainable Business Award 2013
Year of Breakthrough
Equitable, Affordable and Accessible Quality Healthcare For Indonesia
2013 Siloam Highlights
04
Completed a successful initial public offering of Siloam International Hospitals
- Listed on September 12, 2013
- Priced at Rp 9,000 per share
- Raised total proceeds of IDR 1,405 bn
Siloam Hospitals Bali (SHDP), opened on January 1, 2013, turned EBITDAR positive
on the 6
thmonth
Siloam Hospitals TB Simatupang (SHTB) opened on July 1, 2013 and is performing to
plan
Strong momentum in operations as developing hospitals increase their contribution to
revenue and EBITDAR, and new hospitals turn EBITDAR positive
Our Operations
05
Unrivalled scale across Indonesia
JCI Standard
Operational Hospitals
4 Pillar Foundation
The Strategy & Business Model
Siloam Hospitals’ four pillar foundation has been key to the success of our existing hospitals
and will serve as the basis for replicating this success at our expansion hospitals…
1
Emergency
Excellence in
Emergency Services
500-911
2
Technology
3
Telemedicine
4
Doctors
State-of-the-Art
Medical Equipment
and Systems
Digital Telemedicine
“Hub and Spoke”
Siloam Doctor
Partnership and
Development
Program
4 Pillar Foundation
Clinical Service Delivery
The Strategy & Business Model
• Primary clinics for corporate clients
• Public-Private-Partnership (PPP) model - Siloam Puskesmas (Public Health Clinic)
• RSUS – First general hospital using public sector model
– Additional demand from patients under governmental insurance and social schemes
– Gateway to Indonesia’s “Universal Healthcare Coverage” and Government
Health Insurance Programs
• Specialist access for primary healthcare demand
• Public-Private-Partnership
• High standard and accessible medical care through focus on clinical governance and affordable price points
Integrated Healthcare Delivery Model
Primary
Secondary Tertiary
Research and Education • Integrated platform with UPHMS and other partnerships
• Medical students training at RSUS, SHLV, and SHKJ
• Integrated Centres of Excellence: Neuroscience, Cardiology, Cancer, Orthopedic, Urology, Fertility
• Hub and Spoke strategy and extensive coverage of specialised services via Digital Tele-Medicine
• Pioneering investments in Indonesia’s healthcare sector
– Comprehensive Cancer Centre opened in 2011
– Indonesia’s first Gamma Knife installed in 2012
• Best in class and highly accessible healthcare services platform through:
– Rapid expansion of hospital network across Indonesia
– Attracting and retaining the best doctors with strong focus on
doctors’ welfare (SDPDP)
– Equip hospitals with State-of-the-Art facilities such as 128 slice CT Scan and 1.5T MRI
One-stop continuum of care at primary, secondary, tertiary and quaternary levels
Quaternary
UPHMS (UPH Medical Sciences)
The Strategy & Business Model
Centre of Excellence and Global Reputation
• Alignment – across teaching and service delivery
• Affiliate with agencies such as
ACORN/NUS/SGH/UOM
• Leading edge research
• Best practice Models
• Remote Access Diagnosis (RAD) and Remote Access Clinical Management (RACM)
• Telemedicine
• Centres of Clinical Excellence/ Accreditation
• Teaching Hospital paradigm
• Future workforce
• Systems based curriculum converged with PBL
• Best practice replication
• Clinical placement
• Foundation for Innovation
• Overseas training –
Singapore/Australia/USA/China
Bringing Together Clinical, Research & Education
·
Education Research
Clinical
Our Hospitals (Mature and Developing)
Premier Private Hospital Group
TANGERANG (West of Jakarta)
SILOAM HOSPITALS LIPPO VILLAGE
WEST JAKARTA
SILOAM HOSPITALS KEBON JERUK
EAST JAVA
SILOAM HOSPITALS SURABAYA
BEKASI (East of Jakarta)
SILOAM HOSPITALS CIKARANG
JCIA
322 Bed Capacity 229 GP and Specialists 481 Nurses
Centre of Excellence : Neurosience & Heart Centre
279 Bed Capacity 211 GP and Specialists 325 Nurses
Centre of Excellence : Urology & Orthopaedic
182 Bed Capacity 129 GP and Specialists 272 Nurses
Centre of Excellence : Fertility Centre
110 Bed Capacity 87 GP and Specialists 156 Nurses
Centre of Excellence : Occupational Health
EAST SUMATERA SOUTH JAKARTA
SILOAM HOSPITALS JAMBI MRCCC SILOAM SEMANGGI
331 Bed Capacity 159 GP and Specialists 237 Nurses
Centre of Excellence : Cancer Centre
106 Bed Capacity 55 GP and Specialists 127 Nurses
Centre of Excellence : Emergency & Trauma
EAST KALIMANTAN
SILOAM HOSPITALS BALIKPAPAN
228 Bed Capacity 92 GP and Specialists 165 Nurses
Centre of Excellence : Emergency & Trauma and Orthopedics
83% Ownership
79.6% Ownership
New Hospitals in 2012
Premier Private Hospital Group
TANGERANG (West of Jakarta)
SILOAM GENERAL HOSPITAL (RSUS)
666 Bed Capacity 41 GP and Specialists 169 Nurses
NORTH SULAWESI
SILOAM HOSPITALS MANADO
231 Bed Capacity 75 GP and Specialists 160 Nurses
Centre of Excellence : Emergency
SOUTH SULAWESI
SILOAM HOSPITALS MAKASSAR
360 Bed Capacity 77 GP and Specialists 143 Nurses
Centre of Excellence : Cardiology & Emergency
DEPOK (South of Jakarta)
SILOAM HOSPITALS CINERE
21 Bed Capacity 7 GP and Specialists 55 Nurses
Centre of Excellence: Cardiology
SOUTH SUMATERA
SILOAM HOSPITALS PALEMBANG
347 Bed Capacity 111 GP and Specialists 170 Nurses
Centre of Excellence : Emergency & Trauma
SOUTH JAKARTA
SILOAM HOSPITALS TB SIMATUPANG
269 Bed Capacity 70 GP and Specialists 41 Nurses
Centre of Excellence : Emergency, cardiology, oncology &
neuroscience
New Hospitals in 2013
Premier Private Hospital Group
BALI
SILOAM HOSPITALS BALI
281 Bed Capacity 84 GP and Specialists 127 Nurses
Centre of Excellence : Emergency, medical tourism, orthopaedics & cardiology
11
BALI
BIMC KUTA
19 Bed Capacity 52 GP and Specialists 65 Nurses
Centre of Excellence : Emergency
BALI
BIMC NUSA DUA
31 Bed Capacity 34 GP and Specialists 74 Nurses
Operational & Financial
Performance
Siloam is the clear leader and fastest growing private hospital group in Indonesia serving all segments of the population
Strong Financial Performance
737
890
1,030
1,259
1,788
2,502
2008
2009
2010
2011
2012
2013
102
114
140
155
225
302
2008
2009
2010
2011
2012
2013
( In Rp Bn )
( In Rp Bn )
+21%
+16%
+22%
+42%
+12%
+23%
+10%
+46%
13
+40%
+34%
Total Revenue
EBITDA
Note:
73%
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013
EBITDA Contribution and Growth by Category Revenue Contribution and Growth by Category
Commentary
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013 + 24% 0%
+ 335% + 118%
Significant Growth in GOR (40%) and EBITDA (38%).
MRCCC & developing and new hospitals category will continue to grow over 50% as these hospitals ramp-up their
operations to mature level.
Mature hospitals will continue to have annual growth ranging from 15% to 20%.
FY2013 Results by Hospital Category
Revenue & EBITDA Growth
Note:
EBITDAR refers to income before rent, HO expenses, depreciation, provisions for post-employment benefits, allowance for impairment in value, corporate income taxes and other expense and/or income (consisting primarily of financing income and others-net).
14
FY13 Results Consolidated 16 Hospitals
Revenue & EBITDA Analyses
15
New Hospitals 2013
- SHDP, opened on January 1, 2013, performing as planned. Hit positive EBITDAR on the 6
thmonth.
- SHTB, opened on July 1, 2013, performing within plan.
New Hospitals 2012
- SHMK and SHPL are generating EBITDAR of 10% to GOR in their first 12 months, exceeding expectations.
Commentary
(i)
Notes:
(i) Represents rental expenses for the land and buldings, Siloam is leasing from FREIT, PT Lippo Karawaci Tbk and other party. PT Lippo Karawaci started charging rent for the land and buildings of 9 hospitals on May 1, 2013. (see note 34 of the audited financial statement as of and for the periods ended
September 30, 2012 and 2013)
(ii) EBITDA refers to income before depreciation, provisions for post-employment benefits, allowance for impairment in value, corporate income taxes and other expense and/or income (consisting primarily of financing income and others-net).
Particulars FY 2012 FY 2013 ∆%
IDR Bn IDR Bn
GOR 1,788 2,502 40%
Service Cost 515 657 27%
NOR 1,273 1,845 45%
Material Cost 566 810 43%
Gross Margin 707 1,036 46%
Operating Expenses 424 652 54%
EBITDAR 283 384 36%
% to GOR 15.8 % 15.3 %
Rental (i) 30 36 18%
HO Expenses 28 46 69%
EBITDA (ii) 225 302 34%
Property and Equipment,
1,402
Cash & Cash Equivalent,
515 A/R, 271
Inventories, 95
Others, 317
Property and Equipment,
865
Cash & Cash Equivalent,
169 A/R, 187 Inventories,
75
Others, 290
Assets FY2013 Assets FY2012
Commentary
(Rp bn) (Rp bn)
Rp 1,586 Billion
Rp 2,601 Billion
As of December 31, 2012 and 2013
Balance Sheet - Assets
Increase in cash and cash equivalent from Rp 169bn to Rp 515bn (3.0x) was primarily due to the proceeds of the
IPO in September 2013.
Increase in property and equipment from Rp 865bn in 2012 to Rp 1,402bn in 2013 was primarily due to the
investments in new hospitals in January 2013 to December 2013.
Non Current Liabilities,
666
Current Liabilities,
296 Equity, 1,639
Current Liabilities,
268
Non Current Liabilities,
1,074
Equity, 245
Liabilities + Equity FY2013 Liabilities + Equity FY2012
Commentary
(Rp bn) (Rp bn)
As of December 31, 2012 and 2013
Balance Sheet
–
Liabilities + Equity
Increase in equity from FY2012 to FY2013 was primarily due to the IPO offering in September 2013 and
accumulated net profit of the period ended.
Decrease in non-current liabilities was due to the partial payment to parent company from the proceeds of the IPO.
17
IPD Average Revenue Per Patient
Average Revenue Per Patient
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013
2010 2011 2012 2013
OPD Average Revenue Per Patient
0.6 0.7 0.6
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013
2010 2011 2012 2013
(Rp Mn)
IPD Margin %
Margin Breakdown by Line of Business
MRCCC RSUS 4 New 2012
4 New 2013
Cost Margin
OPD Margin %
Margin Contribution by Segment
493 Billion
314 Billion
MRCCC RSUS 4 New 2012
4 New 2013
Cost Margin
Note:
Number of Hospital Growth
4
4
7
12
3
5
4
2010
2011
2012
2013
20
4
7
12
621,414
MRCCC RSUS 4 New 2012 4 New 2013
FY2012 FY2013
MRCCC RSUS 4 New 2012 4 New 2013
FY 2012 FY 2013 14%
MRCCC RSUS 4 New 2012 4 New 2013
FY2012 FY2013 11%
18%
92%
215% IPD Admissions (+40%)
Operational Update Patient Visits & Admissions
21
Total visits and admissions 2012 : 1,033,571
Total visits and admissions 2013 : 1,297,157
Strong throughput growth at all entry points and
conversion to IPD across all hospitals
26%
215% 81%
