en company presentation q3

Indonesia’s Largest,

Fastest Growing,

World Class Hospital Group

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

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

Contents

Lippo Group

01

Where We Are In Lippo Karawaci

02

Highly Experienced & Professional Management

03

The Vision

04

Nationwide Hospitals Network & Market Catchment

05

The Journey

06

The Landscape

07 - 09

The Strategy & Business Model

10 - 12

Premier Private Hospital Group

13 - 15

Operational & Financial Performance

16 - 25

Management Focus

26

4

5

6

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

7

Reach

Scale

International

Quality

The Vision

Affordable and Accessible Healthcare

to all socio economic segments

Godly

Compassion

5 Year Vision…

•

Beds

3,000 to 10,000

•

Patients per annum

1.5 million to 15 million

•

Hospitals

14 to 40 hospitals

11 to over 25 cities

8

Nationwide Hospitals Network & Market

Catchment

05

1 Siloam Hospitals Lippo Village 2 Siloam Hospitals Kebon Jeruk 3 Siloam Hospitals Surabaya 4 Siloam Hospitals Cikarang 5 Siloam Hospitals Jambi 6 Siloam Hospitals Balikpapan 7 MRCCC

8 RSUS (Siloam General Hospital) 9 Siloam Hospitals Manado 10 Siloam Hospitals Makassar 11 Siloam Sriwijaya

12 Siloam Hospitals Cinere 13 Siloam Hospitals Bali 14 Siloam Hospitals Simatupang

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

Greater Jakarta Population : 28 mio

Jakarta Population :

10 mio

Opening in 2015

–

2017

Operating hospitals

Opening in 2H 2013-2014

18 -20 hospitals

6-8 hospitals

Current

Direct Target Market

Population

–

33 Million

9

The Journey

YEAR

1996

2000

2002

2010

2011

2012+

SH MRCCC

SH Lippo Cikarang

SH Lippo Village

SH Kebon Jeruk

SH Balikpapan

SH Jambi

SH Surabaya

1996

–

2006: Learning Phase

2007

–

2010: Consolidation Phase

2011 to Date: Expansion Phase

RSUS

SH Manado

SH Makassar

SH Palembang

SH Bali

SHLV

–

Indonesia’s First Hospital to be

Accredited and Re-accredited by JCI

(2007, 2010 and 2013)

SH Cinere

SH Simatupang

06

2017

10

Additional People in the Consuming Class

11

Demography Profile

The Landscape

58%

Other Chronic

Diseases Other Chronic

Diseases 20%

Injuries 9%

2008

2030

Relatively Young Population is Expected to Sustain in the Future

Changing Disease Pattern Morbidity

Per Capita Healthcare Expenditure

2012

2018

USD 109

USD 237

Doubles in 6 years

Source: United Nations, Department of Economic and Social Affairs, Population Division (2011), Frost & Sullivan Estimates, Ministry of Health.

10.3

2012 Indonesian Population (mm) by Age and Gender

Female Male

•

Life expectancy at birth is 68 years

•

50% of the population under 30 years

•

Consistent population band for next 30 years

12

70,655 doctors

v. Global: Shortage of 267,000 doctors(1)

v. OECD: Shortage of 718,086 doctors(1)

0.30 0.31

TH Indo India MY China SG US UK 0.97 1.02

Indo India MY TH SG UK US China

Severely Underserved Healthcare Markets

The Landscape

238,373 beds

v. Global: Shortage of 229,491 beds (1)

v. OECD: Shortage of 977,189 beds (1) population

Note: (1) Calculated based on global average beds and doctors per 1,000 population ratios. (2) Latest available data for Thailand as of 2009.

Source: Respective cou tries’ i istries of health, WHO, OECD.

OECD Average = 3.14

• Indonesia’s ed to population ratio way elow

global average

• Ample opportunity for private healthcare operators to fill the supply gap

• Doctor to population ratio also way below global average

• Ability to attract and retain doctors and

specialists is a critical success factor for hospitals

Lack of

Global Average = 3.0

Global Average = 1.4

13

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

14

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

15

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

UPHMS (UPH Medical Sciences)

·

Education Research

Clinical

16

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 228 GP and Specialists 455 Nurses

Centre of Excellence : Neurosience & Heart Centre

279 Bed Capacity 213 GP and Specialists 325 Nurses

Centre of Excellence : Urology & Orthopaedic

182 Bed Capacity 80 GP and Specialists 272 Nurses

Centre of Excellence : Fertility Centre

110 Bed Capacity 134 GP and Specialists 158 Nurses

Centre of Excellence : Occupational Health

EAST SUMATERA SOUTH JAKARTA

SILOAM HOSPITALS JAMBI MRCCC SILOAM SEMANGGI

331 Bed Capacity 155 GP and Specialists 255 Nurses

Centre of Excellence : Cancer Centre

106 Bed Capacity 57 GP and Specialists 135 Nurses

EAST KALIMANTAN

SILOAM HOSPITALS BALIKPAPAN

228 Bed Capacity 80 GP and Specialists 186 Nurses

83% Ownership

79.6% Ownership

17

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 2012 to 2013

Premier Private Hospital Group

TANGERANG (West of Jakarta)

SILOAM GENERAL HOSPITAL (RSUS)

733 Bed Capacity 20 GP and Specialists 143 Nurses

NORTH SULAWESI

SILOAM HOSPITALS MANADO

231 Bed Capacity 76 GP and Specialists 188 Nurses

Centre of Excellence : Emergency

SOUTH SULAWESI

SILOAM HOSPITALS MAKASSAR

360 Bed Capacity 77 GP and Specialists 140Nurses

Centre of Excellence : Cardiology & Emergency

BALI

SILOAM HOSPITALS BALI

281 Bed Capacity 82 GP and Specialists 133 Nurses

Centre of Excellence : Emergency, medical tourism, orthopaedics & cardiology

DEPOK (South of Jakarta)

SILOAM HOSPITALS CINERE

21 Bed Capacity 11 GP and Specialists 51 Nurses

Centre of Excellence: Cardiology

SOUTH SUMATERA

SILOAM HOSPITALS PALEMBANG

347 Bed Capacity 86 GP and Specialists 168 Nurses

18

Hospitals under Construction

Premier Private Hospital Group

NORTH SUMATERA

SILOAM HOSPITALS MEDAN

EAST NUSA TENGGARA

SILOAM HOSPITALS KUPANG

WEST JAVA

SILOAM HOSPITALS BANDUNG

CENTRAL JAVA

SILOAM HOSPITALS SEMARANG

EAST JAVA

SILOAM HOSPITALS SURABAYA EXTENSION

There are currently 19 sites under

various stages of development

Operational & Financial

Performance



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

th

_month



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



Slight drag on 3Q 2013 primarily due to:

- Slight decrease in patient visits due to fasting month

- Delay in commissioning Medan and Kupang and the resulting staff cost

due to timing

21

4 Mature 3 Developing RSUS 4 New 2012 2 New 2013

-4 Mature 3 Developing RSUS 4 New 2012 2 New 2013

-4 Mature 3 Developing RSUS 4 New 2012 2 New 2013 -IPD Admissions (+46%)

Operational Update Patient Visits & Admissions



All hospitals have strong throughput growth at all

entry points and conversion to IPD

22

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 1,830

2008

2009

2010

2011

2012

9M2013

102

114

140

155

221

201

2008

2009

2010

2011

2012

9M2013

Total Revenue

EBITDA

( In Rp Bn )

( In Rp Bn )

+21%

+16%

+22%

+42%

+12%

+23%

+10%

+43%

19

Notes:

*) Audited figures for 9 months ended September 30, 2013

**) 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).

*

23

Gross Operating Revenue

1,829.8

1,263.2

44.9%

Service Charge

493.4

367.9

34.1%

Net Operating Revenue

1,336.4

895.4

49.3%

Material Cost

594.3

419.8

41.6%

Gross Margin

742.1

475.5

56.0%

Operating Expenses

483.2

284.3

70.0%

EBITDAR

258.8

191.2

35.3%

% to GOR

14.1%

15.1%

Rent

24.5

11.9

105.1%

HO Expenses

33.1

22.9

44.4%

EBITDA

201.3

156.4

28.7%

% to GOR

11.0%

12.4%

9M2012

∆%

Description

9M2013

Q3 Results

Revenue & EBITDA Analyses

20



New Hospitals 2013

- SHDP, opened on January 1, 2013, performing as planned. Hit positive EBITDAR on the 6

th

_month.

- SHTB, opened on July 1, 2013, performing within plan.



New Hospitals 2012

- SHMK and SHPL are generating EBITDAR of 10% to GOR in Q3, exceeding expectations.

Commentary

(i) In IDR Bn

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).

24

76%

61%

20%

21%

13%

9M2012 9M2013

4 Mature 3 Developing RSUS 4 New 2012 2 New 2013

EBITDAR Contribution and Growth by Classification Revenue Contribution and Growth by Classification

Commentary

(Rp bn) (Rp bn)

+ 16.6% + 50.3%

+ 452.6% + 304.4%

93%

88%

8%

12%

4%

9M2012 9M2013

4 Mature 3 Developing RSUS 4 New 2012 2 New 2013

+ 28.2% + 91.6.0%

+ 8,390.0% + 52.8%



Significant Growth in GOR (44.9%) and EBITDAR (35.3%).



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%.

Q3 Results

Revenue & EBITDAR 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).

25

Revenue Contribution 9M2013

Commentary

(Rp bn) SHLC, 6%

SHBP, 5% SHMK, 4%

SHMN, 4% SHPL, 3%

SHJB, 3% SHDP, 3% RSUS, 2% SHCN, 2% SHTB, 0%

SHLV, 27% SHKJ, 18%

MRCCC, 13%

SHSB, 10%

EBITDAR Contribution 9M2013

(Rp bn) SHLC, 7%

SHBP, 5% SHMK, 3%

SHMN, -1% SHPL, 1% SHJB, 0% SHDP, -1% RSUS, -2% SHCN, 0% SHTB, -1%

SHLV, 45% SHKJ, 21%

MRCCC, 6%

SHSB, 15%

Q3 Results

Revenue & EBITDAR Contribution by Hospital



Currently, the 4 mature hospitals (SHLV, SHKJ, SHSB and SHLC) contribute 61% and 88% to the consolidated

Revenue and EBITDAR of SIH, respectively.



As the hospitals ramp-up their operations to mature level, their contribution to total revenue and EBITDAR will

significantly change going forward.

22

Note:

26

Assets 12M2012 Assets 9M2013

Commentary

(Rp bn) (Rp bn)

Property and Equipment,

1,198 Cash & Cash

Equivalent, 978

A/R, 253 Inventories,

80

Others, 170

Property and Equipment,

865

Cash & Cash Equivalent,

169 A/R, 187 Inventories,

75

Others, 290

Rp 2,680 Billion

Rp 1,586 Billion

As of September 30, 2013 and December 31, 2012

Balance Sheet - Assets



Increase in cash and cash equivalent from Rp 169bn to Rp 978bn (5.8x) was primarily due to the proceeds of the

IPO in September 2013.



Increase in property and equipment from Rp 865bn in 2012 to Rp 1,198bn in 2013 was primarily due to the

investments in new hospitals in October 2012 to September 2013.

27

Liabilities + Equity 12M2012 Liabilities + Equity 9M2013

Commentary

(Rp bn) Current (Rp bn)

Liabilities, 388

Non Current Liabilities,

700 Equity, 1,593

Rp 2,680 Billion

Non Current Liabilities,

1,074 Current

Liabilities, 268

Equity, 245

Rp 1,586 Billion

As of September 30, 2013 and December 31, 2012

Balance Sheet

–

Liabilities + Equity



Increase in equity from 12M2012 to 9M2013 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.



Q4 has historically been the strongest performing quarter and we expect a similar

trend this year



All hospitals continue to perform within plan, and SHTB is expected to hit

EBITDAR positive by early 2014



Construction of Medan and Kupang hospitals is underway and are expected to

open and commence operations early 2014

29

i.

Dynamic

plug and play hospital models

to respond to market needs as well

as market changes.

ii.

Execute a

clear strategy

to drive business focus and stewardship

accountabilities.

iii. Focus on

partnering with doctors

and clinical staff to help us on our journey

iv. Achieve

seamless service by optimizing

our

people, process and

technology

capacity and capability.

v.

Customize

marketing and promotion

to maximize use of our service capacity

and capability and achieve our vision.

vi. Fulfill

the demand side

through

Public Private Partnership (PPP)

.

vii. Drive economies of scale in healthcare through

Managed Care

schemes.

viii. Continue building

Clinical Excellence

in Indonesia.

31

2013 Vs. 2030

32

Impressive Performance over the Past Decade

33

Population and Urbanization

The Landscape

A large population base with emerging middles class and rising affluence

Large and

Growing Population

Base…

Experiencing Rapid Urbanization

Resulting in Increasing

Spending Expenditure

…

34

China India Indo MY TH SG UK US

15.1%

Indo China India MY TH SG US UK

Large Population Base with Rising Affluence

(mm)

Consumer expenditure growth (2001 - 2011) Real GDP growth (2012 – 2016F)

0.5% 1.3% 0.9% 1.0% 0.6% 0.6% 1.7%

CAGR

(2002 – 2022F)

Population (2012)

Note: (1) Estimate as of 2017.

Source: GDP projections from PwC: how China, India and Brazil will overtake the West by 2050 – PwC forecasts of GDP (PPP), January, 2011, The Economist Intelligence Unit, United Nations, Department of Economic and Social Affairs, Population Division (2011 and 2012), IMF, World Bank.

•

16th-largest economy

in the world

•

29%

of households in the middle income group

•

51%

of the population resides in urban areas

•

13th-largest

economy in the world

•

63%

of households will be in the middle income group(1)

•

63%

of the population will be residing in urban areas

Global Average = 4.4% Global Average = 10.3%

Indonesia today …

… and in 2030

World’s 4th largest population… …continues to experience strong _{economic growth…} …and increasing personal wealth

1.8%

China India US Indo TH UK MY SG

35

63%

Coverage

Healthcare Reforms and Universal Insurance

Coverage to Add Further Demand

Source: Center for Health Financing and Health Security (Insurance) (PPJK, MOH), WHO, Frost & Sullivan estimates

Indonesia healthcare reform program highlights

 Government implementation of healthcare reform platform to provide universal coverage

 Insurance schemes established to enhance healthcare accessibility:

 Jamkesmas: public health insurance scheme that

serves the “poor” and “near poor”, forming the key

building block of universal coverage

 JPK Jamsostek: life insurance scheme that has health as an optional feature

 Askes: health insurance for civil servants

 Existing insurance schemes permit enrollees to seek treatment in private hospitals

 Government funds effectively channeled through these schemes to the private sector

 Private hospitals required to dedicate percentage of beds to lower-income individuals

Healthcare coverage

2012

= 148 Million

2019 Target

= 263 Million

100%

Coverage

Total Healthcare Expenditure

Flow of public funding to private healthcare providers creates tremendous growth opporutnities for the private sector

–

2012

= 3.1% of GDP

2018F

= 4.4% of GDP

US$59 Bn

US$27 Bn

36

Excellence Asian Hospital Management Awards (AHMA) 2011

Human Resources Development Category

Frost and Sullivan Healthcare Services Provider of The Year

2010 & 2012

Ministry of Woman Empowerment Award as The Best Mom and Child Hospital in

The Province

Awarded to Siloam Hospitals Lippo Village

Ministry of Health Hospital Management Award 2011 - The Best Accredited Hospital

Awarded to Siloam Hospitals Lippo Village

ISO 9001:2008 Certification for the Management Hospitals Activity

Awarded to Siloam Hospitals Lippo Cikarang (2011-2014)

AstraZeneca Infection Management Award (Azima

Award) as the 1st winner

Siloam Hospitals Surabaya

Indonesia’s Most Admired Company (IMAC) award as “The Best Building and

Managing Corporate Image” in Hospital

Category (2011, 2012 & 2013)

Indonesia Sustainable Awards 2012

Industry Champion Healthcare

37

Investor Relation

e-mail

: investor.relation@siloamhospitals.com

Address:

Siloam Hospital Lippo Village 5

th

_floor

–

_{Head Office}

Jalan Siloam No.6

Lippo Village

Tangerang 15811

Indonesia

Telp

: +62 21 25668000

Fax

: +62 21 5460075