Indonesia’s Largest, Fastest Growing,
World Class Hospital Group
Q1 2014
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
disclaims 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 SILO’s management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although SILO believes that the expectations of its management as reflected by such forward –looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and SILO undertakes no obligation to update or revise any
Contents
4
Where We Are In Lippo Karawaci
As of 31 Mar 2014
No. of Outstanding Shares : 23,077,689,619
Code : LPKR.JK ; LPKR IJ
LIPPO RELATED COMPANIES
32.34%
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 Hospitals
•
Retail Malls
Leisure and
Restaurants
•
REIT, Mall & Hotel
Management
PUBLIC
5
Highly Experienced & Professional Management
Board of Directors
Romeo Lledo
President Director
dr. Andry
Director, Chief Enterprise & Operational Officer
dr. Anang Prayudi Director, Network and
Development
Prof. George Mathew
Director, Talent and Development
dr. Grace Frelita
Director, Quality
Kailas N. Raina
Director, Chief Financial Officer
Board of Commissioners
Ketut Budi Wijaya
President Commissioner
Theo L. Sambuaga
Commissioner
Lambock V. Nahattands
Commissioner
Ir. Jonathan L. Parapak
Independent Commissioner
Farid Harianto
Independent Commissioner
Prof. Dr. H. Muladi, S.H
Independent Commissioner
Rahmawaty
6
Our Operations
Unrivalled scale across Indonesia
JCI Standard
7
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
8
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
• Access to Centres of Excellence through hub and spoke system and
Tele-Integrated Healthcare Delivery Model
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
9
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
10
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
308 Bed Capacity 271 GP and Specialists 476 Nurses
Centre of Excellence : Neurosience & Heart Centre
279 Bed Capacity 210 GP and Specialists 340 Nurses
Centre of Excellence : Urology & Orthopaedic
182 Bed Capacity 150 GP and Specialists 272 Nurses
Centre of Excellence : Fertility Centre
110 Bed Capacity 90 GP and Specialists 160 Nurses
Centre of Excellence : Occupational Health
EAST SUMATERA SOUTH JAKARTA
SILOAM HOSPITALS JAMBI MRCCC SILOAM SEMANGGI
331 Bed Capacity 166 GP and Specialists 238 Nurses
Centre of Excellence : Cancer Centre
106 Bed Capacity 56 GP and Specialists 126 Nurses
Centre of Excellence : Emergency & Trauma
EAST KALIMANTAN
SILOAM HOSPITALS BALIKPAPAN
228 Bed Capacity 82 GP and Specialists 153 Nurses
Centre of Excellence : Emergency & Trauma and Orthopedics
83% Ownership
11
New Hospitals in 2012
Premier Private Hospital Group
TANGERANG (West of Jakarta)
SILOAM GENERAL HOSPITAL (RSUS)
666 Bed Capacity 69 GP and Specialists 209 Nurses
NORTH SULAWESI
SILOAM HOSPITALS MANADO
230 Bed Capacity 79 GP and Specialists 134 Nurses
Centre of Excellence : Emergency
SOUTH SULAWESI
SILOAM HOSPITALS MAKASSAR
360 Bed Capacity 85 GP and Specialists 259 Nurses
Centre of Excellence : Cardiology & Emergency
DEPOK (South of Jakarta) SILOAM HOSPITALS CINERE
37 Bed Capacity 8 GP and Specialists 48 Nurses
Centre of Excellence: Cardiology
SOUTH SUMATERA
SILOAM HOSPITALS PALEMBANG
347 Bed Capacity 117 GP and Specialists 177 Nurses
12
SOUTH JAKARTA
SILOAM HOSPITALS TB SIMATUPANG
270 Bed Capacity 91 GP and Specialists 141 Nurses
Centre of Excellence : Emergency, cardiology, oncology &
neuroscience
New Hospitals in 2013
Premier Private Hospital Group
BALI
SILOAM HOSPITALS BALI
281 Bed Capacity 99 GP and Specialists 186 Nurses
Centre of Excellence : Emergency, medical tourism, orthopaedics & cardiology
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
13
Hospitals under Construction
Premier Private Hospital Group
NORTH SUMATERA
SILOAM HOSPITALS MEDAN
EAST NUSA TENGGARA SILOAM HOSPITALS KUPANG
WEST JAVA
SILOAM HOSPITALS PURWAKARTA
Operational & Financial
Performance
15
Siloam is the clear leader and fastest growing private hospital group in Indonesia serving all segments of the popula7on
Strong Financial Performance
737
2008
2009
2010
2011
2012
2013 2014P
102
114
140
155
221
298
508
2008
2009
2010
2011
2012
2013 2014P
( In Rp Bn )
( In Rp Bn )
Revenue
EBITDA
16
2014 Revenue Ramp Up
2,504
751
1,522
2,486
3,504
2013
Q1 2014A
Q2 2014P
Q3 2014P
FY 2014P
40% growth
( In Rp Bn )
Note:
*Projected GOR ramp up by quarter
14%
21%*
43%*
71%*
17
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
‐14% + 76%
+ 216% + 47%
The decreased EBITDA of 14% of the 4 mature hospitals was primarily due to:
On May 1, 2013, SIH started to incur rental expenses on the land and building being sub leased from the parent company. The
total rental in Q1 2014 amounted to Rp 5 billion and Q1 2013 is NIL.
SHLC rental expense for its sale and leaseback agreement amounted to Rp 9 billion in Q1 2014 and Rp 6 billion in Q1 2013.
Q1 2014 Results by Hospital Category
Revenue & EBITDA Growth
Note:
EBITDA refers to income before deprecia8on, provisions for post‐employment benefits, allowance for impairment in value, corporate income taxes and other expense and/or income (consis8ng primarily of financing income and others‐net).
18
Q1 2014 Consolidated Results
Revenue & EBITDA Analyses
(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.
(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
Q1 2014 Q1 2013
∆%
IDR Bn IDR Bn
GOR 751 584 29%
Service Cost 188 156 21%
NOR 563 428 32%
Material Cost 238 187 28%
Gross Margin 325 242 35%
Operating Expenses 188 143 31%
EBITDAR 137 98 40%
% to GOR 18.3% 16.8%
Rental (i) 14 6 128%
HO Expenses 13 10 33%
EBITDA (ii) 110 82 34%
% to GOR 14.7% 14.1%
NPAT 24 26 -6%
19
Q1 2014 Consolidated Results
Balance Sheet
(i)
In Rp Bn
Q1 2014
Q1 2013
∆
%
Assets
Cash & Equivalent
449
515
-13%Property and Equipment
1,415
1,402
1%Total Assets
2,631
2,601
1%Liabilities & Equity
Liabilities
969
962
1%Shareholders' Equity
1,662
1,639
1%20
IPD Average Revenue Per Patient
Q1 2014
Average Revenue Per Patient
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013
2010 2011 2012 2013 Q1 2014
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 Q1 2014
(Rp Mn)
21
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013
Q1 2013 Q1 2014
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013
Q1 2013 Q1 2014
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013
Q1 2013 Q1 2014
22% 64%
35%
IPD Admissions (+26%)
Operational Update Patient Visits & Admissions
Total visits and admissions Q1 2013 : 310,872
Total visits and admissions Q1 2014 : 379,972
Strong throughput growth at all entry points and
conversion to IPD across all hospitals
22
2010 to Q1 2014
Number of Hospital Growth
4
Note:
Image courtesy of iconbug.com
