Indonesia’s Largest,
Fastest Growing,
World Class Hospital Group
Q2 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 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
The Vision
03
The Operations
04
Highlights
•
Hospitals in operation as of June 30, 2014 - 17 Hospitals
•
Q2 results on track to achieve 40% growth in GOR and 14.5% EBITDA to GOR in 2014.
•
Expansion plan to 40 hospitals by end of 2017 is on track. 29 projects in the pipeline in different stages of
completion.
•
Medical tourism project in Bali on track, Australia as the main target. Application for Accreditation with the
Australian Council on Healthcare Standards (ACHS) was approved on July 17, 2014.
9,000
10,000
11,000
12,000
13,000
14,000
15,000
Closing Price (Rp)
Share Price Performance
2014
SILO IJ
2013Sept Oct Nov Dec June
9,600
10,500 10,300 11,000
10,400
10,150
9,625 9,500
15,000
Jan Feb Mar Apr May
•
Successfully completed IPO on September 12, 2013.
Where We Are In Lippo Karawaci
01
As of 30 June 2014
No. of Outstanding Shares : 23,077,689,619 Code : LPKR.JK ; LPKR IJ
LIPPO RELATED COMPANIES
25.66%
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
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 Farid Harianto
Independent dr. Gershu Paul
Reach
Scale
International
Quality
The Vision
Affordable and Accessible Healthcare
to all socio economic segments
Godly
Compassion
By 2017..
•
Beds
3,900 to 10,000
•
Patients per annum
2 million to 15 million
•
Hospitals
17 to 40 hospitals
13 to over 25 cities
The Operations
04
Unrivalled scale across Indonesia
JCI Standard
Operational Hospitals (17)
Future Developments (29)
Sumatra Population : 50.6 mio
Kalimantan Population : 13.8 mio
Java Population : 136.6 mio
Sulawesi Population : 17.4 mio
Papua Population : 3.6 mio
Bali Population : 3.9 mio
Nusa Tenggara Population : 9.2 mio
Maluku Population : 2.6 mio
Jakarta Population : 10 mio
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
Mature and Developing Hospitals
Premier Private Hospital Group
79.45% Ownership
EAST KALIMANTAN
SILOAM HOSPITALS BALIKPAPAN
228 Bed Capacity 92 GP and Specialists 180 Nurses
Centre of Excellence : Emergency & Trauma and Orthopedics
EAST SUMATERA
SILOAM HOSPITALS JAMBI
100 Bed Capacity 65 GP and Specialists 127 Nurses
Centre of Excellence : Emergency & Trauma 83.0% Ownership
SOUTH JAKARTA
MRCCC SILOAM SEMANGGI
331 Bed Capacity 172 GP and Specialists 220 Nurses
Centre of Excellence : Cancer Centre
TANGERANG (West of Jakarta)
SILOAM HOSPITALS LIPPO VILLAGE
JCIA
308 Bed Capacity 234 GP and Specialists 455 Nurses
Centre of Excellence : Neurosience & Heart Centre
WEST JAKARTA
SILOAM HOSPITALS KEBON JERUK
279 Bed Capacity 198 GP and Specialists 342 Nurses
Centre of Excellence : Urology & Orthopaedic
EAST JAVA
SILOAM HOSPITALS SURABAYA
162 Bed Capacity 144 GP and Specialists 265 Nurses
Centre of Excellence : Fertility Centre
08
BEKASI (East of Jakarta)
SILOAM HOSPITALS CIKARANG
118 Bed Capacity 91 GP and Specialists 161 Nurses
New Hospitals in 2012
Premier Private Hospital Group
TANGERANG (West of Jakarta)
SILOAM GENERAL HOSPITAL (RSUS)
664 Bed Capacity 49 GP and Specialists 214 Nurses
SOUTH SUMATERA
SILOAM HOSPITALS PALEMBANG
347 Bed Capacity 119 GP and Specialists 161 Nurses
Centre of Excellence : Emergency & Trauma
NORTH SULAWESI
SILOAM HOSPITALS MANADO
230 Bed Capacity 98 GP and Specialists 126 Nurses
Centre of Excellence : Emergency & Trauma
SOUTH SULAWESI
SILOAM HOSPITALS MAKASSAR
360 Bed Capacity 97 GP and Specialists 247 Nurses
Centre of Excellence : Cardiology and Emergency & Trauma
09
DEPOK (South of Jakarta)
SILOAM HOSPITALS CINERE
37 Bed Capacity 19 GP and Specialists 51 Nurses
Centre of Excellence: Cardiology
80.0% Ownership
New Hospitals in 2013
Premier Private Hospital Group
BALI
SILOAM HOSPITALS BALI
281 Bed Capacity 97 GP and Specialists 179 Nurses
Centre of Excellence : Emergency & Trauma, Medical Tourism,
Orthopaedics and Cardiology
10
BALI
BIMC KUTA
19 Bed Capacity 51 GP and Specialists 65 Nurses
Centre of Excellence : Emergency & Trauma
BALI
BIMC NUSA DUA
31 Bed Capacity 57 GP and Specialists 74 Nurses
Centre of Excellence : Emergency & Cosmetic Surgery
80.0% Ownership
80.0% Ownership
New Hospitals in 2014
SOUTH JAKARTA
SILOAM HOSPITALS TB SIMATUPANG
269 Bed Capacity 110 GP and Specialists 136 Nurses
Centre of Excellence : Emergency & Trauma.
Cardiology, Oncology and Neuroscience
WEST JAVA
SILOAM HOSPITALS PURWAKARTA
203 Bed Capacity 34 GP and Specialists 105 Nurses
Hospitals under Construction
Premier Private Hospital Group
11
NORTH SUMATERA
SILOAM HOSPITALS MEDAN
EAST NUSA TENGGARA
SILOAM HOSPITALS KUPANG
Awards
Premier Private Hospital Group
12
Indonesia Healthcare Most Reputable Brand 2014
Based on Healthcare Survey in 7 Big Cities in
Indonesia (Awarded by SWA)
Indonesia Healthcare Most Reputable Brand 2014
Based on Healthcare Survey in Jabodetabek City
(Awarded by SWA)
Indonesia Healthcare Most Reputable Brand 2014
Based on Healthcare Survey in Makassar City (Awarded by SWA)
Indonesia Healthcare Most Reputable Brand 2014
Based on Healthcare Survey in Denpasar City
(Awarded by SWA) BIMC Hospital was awarded
Indonesia Healthcare Most Reputable Brand 2014
Based on Healthcare Survey in 7 Big Cities in Indonesia
(Awarded by SWA)
European Award For Best Practices 2014
(from European Society for Quality Research)
Corporate Image Award 2014 The Best in Building and Managing Corporate Image - Category Hospital
(Awarded by TEMPO and Frontier)
Indonesia Best New Issuer 2014
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
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
Note:
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).
2014 Revenue Ramp Up
751
1,522
2,486
3,504
2,504
751
1,568
2,501
3,504
2013
Q1 2014A
Q2 2014A
Q3 2014P
Q4 2014P
Guidance
Actual
( In Rp Bn )
15
14%
21%
45%
71%
100%
21%
43%
71%
100%
62%
Q2 2013 Q2 2014
4 Mature 2 Developing MRCCC RSUS
4 New 2012 4 New 2013 1 New 2014
EBITDA Contribution and Growth by Category Revenue Contribution and Growth by Category
Commentary
Q2 2013 Q2 2014
4 Mature 2 Developing MRCCC RSUS
4 New 2012 4 New 2013 1 New 2014
The decreased EBITDA of 10% 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 Q2 2014 amounted to Rp 17 billion and Q2 2013 was Rp 3 billion.
SHLC rental expense for its sale and leaseback agreement amounted to Rp 16 billion in Q2 2014 and Rp 12 billion in Q2 2013.
Q2 2014 Results by Hospital Category
Revenue & EBITDA Growth
Note:
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).
Q2 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 parties. 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
Q2 2013 Q2 2014
∆%
IDR Bn IDR Bn
GOR 1,201 1,568 31%
Service Cost 325 403 24%
NOR 876 1,165 33%
Material Cost 390 494 27%
Gross Margin 486 671 38%
Operating Expenses 305 399 31%
EBITDAR 181 272 50%
% to GOR 15.1% 17.3%
Rental (i) 15 33 122%
HO Expenses 23 31 35%
EBITDA (ii) 143 208 45%
% to GOR 11.9% 13.2%
NPAT 17 45 156%
% to GOR 1.4% 2.8%
Q2 2014 Consolidated Results
Balance Sheet
(i)
In Rp Bn
FY 2013
Q2 2014
∆%
Assets
Cash & Equivalent
515
434
-16%Property and Equipment
1,402
1,423
1%Total Assets
2,601
2,641
2%Liabilities & Equity
Liabilities
962
959
-0.3%Shareholders' Equity
1,639
1,682
3%D/E Ratio
0.37
0.36
IPD Average Revenue Per Patient
Q2 2014
Average Revenue Per Patient
19
16.8 19.1
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013 1 New 2014
2010 2011 2012 2013 Q2 2014
OPD Average Revenue Per Patient
0.6
4 Mature 2 Developing MRCCC RSUS 4 New 2012 4 New 2013 1 New 2014
2010 2011 2012 2013 Q2 2014 (Rp Mn)
335,578
MRCCC RSUS 4 New 20124 New 20131 New 2014
Q2 2013 Q2 2014
ED Visits (+27%)
MRCCC RSUS 4 New 2012 4 New 2013 1 New 2014
Q2 2013 Q2 2014
22,973
MRCCC RSUS 4 New 2012 4 New 2013 1 New 2014
Q2 2013 Q2 2014
IPD Admissions (+30%)
Operational Update Patient Visits & Admissions
20
Strong throughput growth at all entry points and
conversion to IPD across all hospitals
149% 330%
0.3%
Q2 2014
Note:
Total of OPD visits includes One Day Care Visits
2010 to Q2 2014
Number of Hospital Growth
21
Note:
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