Bumrungrad Hospital PCL

Investor Presentation August 2015

PG.2

Disclaimer • The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or

the solicitation of an offer or invitation to purchase or subscribe for any securities of Bumrungrad Hospital Public Company Limited (the

"Company") in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or

commitment whatsoever.

• This presentation is being communicated only to persons who have professional experience in matters relating to investments and/or

to persons to whom it is lawful to communicate it under the laws of applicable jurisdictions. Other persons should not rely or act upon

this presentation or any of its contents.

• Certain information and statements made in this presentation contain the Company's forward-looking statements. All forward-looking

statements are the Company's current expectation of future events and are subject to a number of factors that could cause actual

results to differ materially from those described in the forward-looking statements. Prospective investors should take care with respect

to such statements and should not place undue reliance on any such forward-looking statements.

• This presentation has been prepared by the Company solely for the use at this presentation. The information in this presentation has

not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on,

the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the Company, any of

its affiliates or any of their respective agents, advisors or representatives, shall have any liability (in negligence or otherwise) for any

loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this

presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change

without notice and its accuracy is not guaranteed. None of the Company, any of its affiliates or any of their respective agents, advisors

or representatives, makes any undertaking to update any such information subsequent to the date hereof.

• This presentation should not be construed as legal, tax, investment or other advice. No part of this presentation shall be relied upon

directly or indirectly for any investment decision-making or for any other purposes. Prospective investors should undertake their own

assessment with regard to any investment and should obtain independent advice on any such investment’s suitability, inherent risks

and merits and any tax, legal and accounting implications which it may have for them.

• Certain data in this presentation were obtained from various external data sources, and none of the Company, any of its affiliates or

any of their respective agents, advisors or representatives have verified such data with independent sources. Accordingly, the Company

makes no representation as to the accuracy or completeness of those data, and such data involve risks and uncertainties and are

subject to change based on various factors.

PG.3

Agenda

Overview

Strategy

Operational Update

Financial Performance

Associated Companies

PG.4

Fact Sheet

Established in 1980; listed on SET in 1989

Bumrungrad International Hospital o Facilities

• One of the largest and most sophisticated private hospitals in South-East Asia

• 580 licensed inpatient beds and 5,500 outpatient visit capacity per day

• Thailand’s leading tertiary medical center • Red Cross rated “Class A” tertiary care center; a

regional referral center o Accreditation

• 1st hospital in Asia to receive US JCI Accreditation, in 2002. Re-accredited by the JCI in 2005, 2008, 2011 and 2014. JCI ‘Disease-Specific’ Certification, heart and stroke programs (since 2006); Chronic Kidney Disease and Diabetes Mellitus (since 2010)

• 1st private hospital in Thailand with Thai Hospital Accreditation (1999)

o Patients • Over 1.1 million patient episodes annually • Over 500,000 international patient episodes

annually from over 200 countries o Services

• 55 Sub-Specialties

BHPCL, an early mover in medical tourism, is an international leader in combining clinical quality with customer service oriented patient care

Bangkok Bank

Pcl., 0 .26% Sinsuptawee A M,

8.49%Bangkok

Insurance Pcl.,

14 .62%

T hai NVDR, 5 .04%

Bangkok Dusit

Medical Services

Pcl., 23.95%

UOB Kay Hian

(HK) - Client

A ccount, 8 .33%

Others, 39.63%

Shareholding Structure

As of 30 June 2015

Including preferred stocks

PG.5

BH

BDMS

BCH

SVH

RAM VIBHA

CMR

M-CHAI

SKR NTV

TNH

CHG

IHH

KPJ

RAFG

APLH FOHE

SILO

0

25

50

75

100

125

150

175

200

225

250

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

Value & Profitability Comparison

Source: IBES/Bloomberg, SET

Note: Thai hospital’s EBITDA margins are unadjusted for doctor revenue

EV/bed (MB/bed) 2Q15

2Q15 EBITDA Margin

PG.6

BH

BDMS

BCH

SVH

RAM

VIBHA

CMR

M-CHAI

SKR

NTV

TNH CHG

IHHH

KPJH

RAF-G

APLH FOHE

SILO

-5

0

5

10

15

20

25

30

35

0 1 2 3 4 5 6 7 8 9 10 11 12 13

ROE & P/B Comparison

Source: IBES/Bloomberg, SET

Price to Book

2Q

15

RO

E

PG.7

TOP 10 REGION’S HEALTH CARE PROVIDERS BY MARKET VALUE

Source: Forbes

COMPANY/COUNTRY

IHH HEALTHCARE/MALAYSIA 2,440 12.6

RAMSAY HEALTHCARE/AUSTRALIA 4,490 1 9.3

BANGKOK DUSIT MEDICAL SERVICES/THAILAND 1,760 8.8

BUMRUNGRAD HOSPITAL/THAILAND 490 3.0

APOLLO HOSPITALS/INDIA 860 2 2.6

PRIMARY HEALTH CARE/AUSTRALIA 1,400 1 2.2

RAFFLES MEDICAL GROUP/SINGAPORE 300 1.8

SILOAM INTERNATIONAL HOSPITALS/INDONESIA 290 1.5

KPJ HEATLHCARE/MALAYSIA 820 1.1

FORTIS HEALTHCARE/INDIA 740 2 0.9

ANNUAL SALES

($MIL)

MARKET VALUE

($BIL)

Sales are estimates for year ending Dec. 31; Market value as of Aug 18. 1Sales for year ended Jun 30 are estimated for Ramsay, final for primary. 2Final sales for year ended Mar 31.

PG.8

Bumrungrad’s International Volumes 2001 to 2014

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

225,206

273,651

303,876

365,386 391,559

431,954 426,398 415,810 406,543 423,793

466,225

522,414 526,394

619,528

Pat

ien

t V

olu

me

s, V

isit

s +

Ad

mis

sio

ns

PG.9

Volume Contribution by Nationality

Revenue Contribution by Nationality

Revenue Diversification

62% 60% 63% 65% 66%

38% 40% 37% 35% 34%

0%

20%

40%

60%

80%

100%

2Q14 3Q14 4Q14 1Q15 2Q15

International Thai

52% 52% 53% 54% 54%

48% 48% 47% 46% 46%

0%

20%

40%

60%

80%

100%

2Q14 3Q14 4Q14 1Q15 2Q15

International Thai

• 1H15 Top 10 revenue contribution by Residency and Nationality

Nationality

Thailand 34.3%

Myanmar 8.6%

UAE 7.8%

Oman 6.5%

USA 5.2%

Cambodia 3.5%

Bangladesh 3.2%

Qatar 2.4%

Kuwait 2.4%

UK 2.3%

Residency

Thailand 44.2%

UAE 10.8%

Myanmar 8.6%

Oman 6.6%

Cambodia 3.9%

Bangladesh 3.2%

Qatar 2.7%

Kuwait 2.5%

UAS 2.1%

Ethiopia 1.4%

PG.10

Why Bumrungrad?

Located in Thailand

Invested the Time

Invested into the Brand

Invested into Training

Invested into Technology

Invested into Facilities

Invested into Processes

PG.11

Thailand’s unique advantages

Good doctors

Lower cost labor

Service culture

Image as value destination with good tourism infrastructure

Consumer-driven healthcare

Self pay, walk in environment

PG.12

Doctors & Nurses

• 55 Sub-Specialties

• Over 2,000 nurses and professional staff

• Over 1,300 physicians and dentists

• International experience staff and overseas board certification (over 320 are US, UK or Australian Board certified)

PG.13

International reputation

Inside Man

“The top destination hospitals are designed to be models of

efficiency”

China Daily

“Affordable and high quality medical care is helping to

entice visitors to the ASEAN region”

International Herald Tribune

“It’s better than anything I’ve seen; it’s a five star hospital.”

CBS 60 Minutes

“It’s the number one international hospital in the world.”

The Financial Times

“They (Bumrungrad) said, ‘you can have (surgery) done

tomorrow if you want.’ Tomorrow! I have never heard that

word in England in all my life.”

Newsweek

“Bumrungrad International Hospital in Bangkok is a magnet

for medical tourists.”

PG.14

PACS

Swisslog pharmacy robot

Invested in Technology – Integrated Services

Single patient record, unified HIS

Hospital-wide Wi-Fi, record access in every room

1-stop checkup center; cashier, pharmacy on every OPD floor

Laboratory Automation System: Abbott ACCELERATOR a3600

PG.15

Invested in Technology - Website

Visual experience on web: pick your doctor or your room

Information about medical procedures or specialty centers

Cost estimates

PG.16

Premium Inpatient Facilities

Customer-oriented patient service culture supported by hotel-like ambience in a warm and restful environment

PG.17

Expansive Outpatient Facilities

Ground Floor Lobby

Sky Lobby

Large scale outpatient facilities allow extensive variety of services with privacy, comfort and efficiency

Welcome Center New Clinics

PG.18

Processes - International Referral Offices

Australia

Bahrain

Bangladesh

Cambodia (3)

China (3)

Ethiopia

Hong Kong

Indonesia (4)

Kazakhstan

Kuwait

Lao PDR

Mongolia

Myanmar (5)

Oman

Russia (2)

Sudan

UAE (Dubai)

Vietnam (2)

32 offices in 18 countries outside Thailand that

arrange appointments and travel for BI patients (as of August 2015)

PG.19

Processes - Health Screening Center

Managed using Constraint Theory

Entry portal for medical travelers

One-stop floor for a complete

check-up

Average 200 per day, 7 days a week

50% walk–in

Only screening services – No acute

services

No variation in screening services,

based on medical evidence

PG.20

Overview

Strategy

Operational Update

Financial Performance

Associated Companies

Agenda

PG.21

Strategy

• Campus expansion

• Doctor recruitment in subspecialties

• Advanced technology

• Skilled work force

Bumrungrad International

Hospital

• Development of the Bumrungrad Network • Leverage economies of scale in knowledge

Thailand

• Evolve UB Songdo into a regional hospital

• Develop a diagnostic clinic in Myanmar

• Review of selective opportunities in existing referral markets

International

PG.22

Strategy (Detail)

• Opened 5 floors in Bumrungrad International Clinic Clinics

• Added 18 ICU beds and 58 ward beds in Bumrungrad International Hospital building

• Renovate and expand ancillary services Inpatient

• Petchburi Road’s EIA approval allows a Maximum FAR of 78,233 m2

• Construction expected to start in Q1 2016 2nd Campus

• Bought 6,172 sq. meters of land on Sukhumvit Soi 1

• Evaluate development options for Soi 1

• Grand opening of Bumrungrad Residential and Office Building on 6 March 2015 for employee housing and administrative offices

Acquire Additional Capacity

• Evolve UB Songdo into a regional hospital International

Estimated Capital Investment (Million THB)

Y15 Y16 Y17 Y18 Total

1,987 3,815 5,111 487 11,400

PG.23

Campus Expansion – BI Hospital Building

• Added 18 ICU beds and 58 ward beds in Bumrungrad International Hospital building

PG.24

Technology – IBM Watson Oncology

• A cognitive computing system developed collaboratively by IBM and Memorial Sloan Kettering, one of the world’s leading cancer center

• Analyzes information from the medical literature, international treatment guidelines and recognized world experts

• Integrates patient information into the analysis and makes individualized treatment recommendation to provide state of the art care with the best outcome for Bumrungrad patients with cancer.

For more information on IBM Watson, visit

www.ibmwatson.com

IBM Watson Oncology Built with Memorial Sloan Kettering

PG.25

Bumrungrad Personnel Development and

Training Center Co., Ltd.

Simulation Training Center

Skilled Workforce

Bumrungrad is Thailand’s first private hospital to use such an innovative training facility to improve patient care.

PG.26

Master Plan Update

EIA Approval was obtained for

the Petchburi Campus on 29

January 2015.

Soi 1 development is being

evaluated

Renovate BHR with clinical

activity on 6 floors (if allowed by

BMA and MOPH) and replacing

the MEP infrastructure.

Completed renovation of the

BRO Building

PG.27

Current Status – Petchburi Project

EIA Approval allows a Maximum FAR of 78,233 m2

PG.28

Main Lobby

Current Status – Petchburi Project

Construction expected to start in Q1 2016

PG.29

Soi 1 Outpatient Facility

PG.30

Soi 1 Outpatient Facility

PG.31

Soi 1 Outpatient Facility

The total site is 6,172 m2

In order to maximize the allowed building area, the site will be divided in 3 zones.

Maximum total building area is expected to be 25,000 m2.

Development options are being evaluated.

PG.32

BRO Building – renovation completed

Administrative Offices Employee Housing

PG.33

Overview

Strategy

Operational Update

Financial Performance

Associated Companies

Agenda

PG.34

3,022 3,038 2,958 3,348 3,424 3,397

2,820

3,348 3,325 3,264

0

1,000

2,000

3,000

4,000

2Q 3Q 4Q 1Q 2Q

2013 2014 2015

Overall Volume Trend

Visits

Average Visits per Day

2.5%

80 89 83 91

101 99

84 91

99 93

0

20

40

60

80

100

120

2Q 3Q 4Q 1Q 2Q

2013 2014 2015

Admissions

Average Admissions per Day

ADC

Average Daily Census

356

374 368

406

438 440

374

406

457 465

300

320

340

360

380

400

420

440

460

480

2Q 3Q 4Q 1Q 2Q

2013 2014 2015

10.8%

13.1% 14.1%

12.7%

13.7% 17.3%

Inpatient volumes advanced 14.4% in terms of patient days and 2.2% in terms of admissions in 2Q15 compared with 2Q14. This resulted mostly from a higher average length of stay for both non-Thai and Thai patients, along with strong international admission growth of 9.3%. Outpatient volumes declined 2.5% in 2Q15 compared with 2Q14, mostly due to a 6.1% decrease in Thai volumes, offset by non-Thai volume growth. Revenue intensity rose 7.1% and 11.2% for outpatient and inpatient services, respectively. The combined results of the above resulted in outpatient service revenues advancing 11.3% while inpatient service revenues grew 19.1%. The revenue contribution from inpatient services in 2Q15 was 49.9% and from outpatient services was 50.1%, compared with 48.2% and 51.8%, respectively, for 2Q14.

14.9% 17.9%

19.8% 18.1% 19.7% 22.2% 2.2% 14.4%

PG.35

7,411 7,459

7,652

6,982 7,254 7,624

7,531 6,982

7,976 7,967

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2Q 3Q 4Q 1Q 2Q

2013 2014 2015

246,372

234,988 251,356 238,899

231,289 238,959

263,996

238,899 261,444

278,362

0

50,000

100,000

150,000

200,000

250,000

300,000

2Q 3Q 4Q 1Q 2Q

2012 2013 2014

Revenue per episode reflects an increase from the 1st Jan 2015 price adjustment. Revenue intensity : 2nd Quarter OPD revenue intensity 7.1% IPD revenue intensity per admission 11.2%

Revenue Intensity

Bt

Revenue per Visit

Bt

Revenue per Admission

3.0%

2.8%

1.6%

5.8% 0.4% 5.9%

4.9% 1.0%

14.1%

16.5%

PG.36

Volume Contribution by Nationality

Revenue Contribution by Nationality

International Breakdown

• For 2Q15: Revenues by market segment, non-Thai patients

accounted for 65.9% of the total in 2Q15, with the remaining

34.1% from Thai patients, compared to 61.9% and 38.1% for

non-Thai patients and Thai patients, respectively, in 2Q14. The

change from the prior year was mostly due to the strong growth

in non-Thai business in 2Q15.

• YTD Jun15 Top 5 revenue contribution by Non-Thai Nationalities

Myanmar 9%

UAE 8%

Oman 7%

USA 5%

Cambodia 4%

62% 60% 63% 65% 66%

38% 40% 37% 35% 34%

0%

20%

40%

60%

80%

100%

2Q14 3Q14 4Q14 1Q15 2Q15

International Thai

52% 52% 53% 54% 54%

48% 48% 47% 46% 46%

0%

20%

40%

60%

80%

100%

2Q14 3Q14 4Q14 1Q15 2Q15

International Thai

PG.37

Revenue Breakdown

Inpatient vs. Outpatient (% of revenue) Method of Payment (% of revenue)

YTD Jun15

• 2Q15 Revenue growth:

Outpatient revenue increased by 11.3% y-o-y

Inpatient revenue increased by 19.1% y-o-y

• Self-pay remains the primary method of payment

48% 48% 48% 49% 50%

52% 52% 52% 51% 50%

0%

20%

40%

60%

80%

100%

2Q14 3Q14 4Q14 1Q15 2Q15

Inpatient Outpatient

Corporate Contracts - Domestic

8%

Corporate Contracts -

Intl 10%

Self-pay 69%

Insurance 13%

PG.38

Agenda

Overview

Strategy

Operational Update

Financial Performance

Associated Companies

PG.39

Operating Performance 2010-2014 Total Revenues

Profit

EBITDA

2,4502,819

3,326

4,016

4,516

0

1,000

2,000

3,000

4,000

5,000

2010 2011 2012 2013 2014

EB

ITD

A (

TH

B m

m)

16.5% CAGR

790

15,911

14,65113,25211,306

10,056

0

3,000

6,000

9,000

12,000

15,000

18,000

2010 2011 2012* 2013 2014

To

tal R

even

ues (

TH

B m

m)

12% CAGR

63

33

548

1,5551,258

2,010

2,5212,730

0

500

1,000

1,500

2,000

2,500

3,000

2010* 2011** 2012*** 2013 2014

Pro

fit

(TH

B m

m)

20% CAGR

DILUTED EPS

1.451.79

2.32

2.91

3.15

0.07

0.04

0.63

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2010 2011 2012 2013 2014

Dilu

ted

EP

S (

TH

B)

20% CAGR

* One-time loss of THB 63 million in 2010 was loss on the translation adjustment from the sale of Asia

Renal Care (ARC) Group

** One-time profit of THB 33 million in 2011 was tax loss on sale of BMC THB 106 million offset with loss

on sale of AHI THB 24 million and loss on share repurchase THB 50 million

*** One-time profit of THB 548 million in 2012 was gain on sale of investment (KH), net of tax THB 567

million offset with capital gain tax and tax advisory services on AHI sale THB 14 million and certain wind

down and operation costs of BIL THB 5 million.

1,321

2.95

1.83

1,588

2,558

1.52

Remark: The calculation of CAGR is excluding the extraordinary items. Remark: The calculation of CAGR is excluding the extraordinary items.

Remark: The calculation of CAGR is excluding the extraordinary items.

14,042

* One-time revenue of THB 790 million in 2012 was gain on sale of investment in subsidiary.

PG.40

Margins & Trend

Margins have been growing over the last 5 years

Net Profit Margin Trend

17.2% 17.2%15.1%

13.7%13.1%

0%

10%

20%

30%

2010* 2011* 2012* 2013 2014

EBITDA Margin Trend

28.6%27.7%

25.3%24.4% 25.0%

15%

20%

25%

30%

35%

2010 2011 2012 2013 2014*Excluding extraordinary items

PG.41

1H15 Update

2,103 2,784

28.2%

31.5%

0%

10%

20%

30%

40%

0

500

1,000

1,500

2,000

2,500

3,000

1H14 1H15

EBITDA EBITDA Margin

Total Revenues EBITDA

Net Profit

THB million THB million 32.4%

THB million

• Cost of hospital operations (including Depreciation and amortization) was Baht 5,106 million for 1H15, or 13.9% more year-over-year from Baht 4,484 million in 1H14. This represents a favorable change when compared to the 18.9% growth in Revenues from hospital operations. The percentage of cost to Revenues from hospital operations improved from 61.0% in 1H14 to 58.4% in 1H15. Administrative expenses (including Depreciation and amortization) were Baht 1,462 million in 1H15, increasing 6.9% from Baht 1,368 million in 1H14. This change included Baht 51 million increases in staff costs, largely associated with volume growth and annual merit increases; Baht 33 million more in software support and maintenance expenses related to the IBM Watson project; Baht 18 million more in bad debt expense, mostly from the prior year reversal of a large bad debt account; Baht 8 million in credit card commission; and Baht 6 million additional marketing related expenses due to timing differences of expenditures between periods, offset by a Baht 32 million reduction in donations to support nurse recruitment. EBITDA grew 32.4% year-over-year from Baht 2,103 million in 1H14 to Baht 2,784 million in 1H15, with the EBITDA margin advancing to 31.5% in 1H15 compared with 28.2% in 1H14.

• Net profit for 1H15 surged 43.1% to Baht 1,823 million from Baht 1,274 million in 1H14, with Net profit margin at 20.4 % in 1H15 compared to 16.9% in 1H14. Diluted EPS increased at the same rate to Baht 2.10 in 1H15 from Baht 1.47 in 1H14.

7,533 8,918

0

3,000

6,000

9,000

12,000

18.4%

1H14 1H15

1,274

1,823

16.9%20.4%

0%

10%

20%

30%

40%

0

500

1,000

1,500

2,000

1H14 1H15

Net Profit Net Profit Margin

43.1%

PG.42

Leverage x Interest Coverage

x

Net Debt to EBITDA

x

Net Debt to Equity

x

0.6

(0.1)

0.2

0.0

(0.0)

(0.25)

0.00

0.25

0.50

0.75

20112012

2013 2014YTD

Jun15

1.3

(0.3)

0.5

0.1

(0.0)

(0.50)

0.00

0.50

1.00

1.50

2011

2012

2013 2014YTD

Jun15

14.9 13.8 16.4 18.8

23.3

0

10

20

30

40

2011 2012 2013 2014 YTD Jun15

Note: Net debt excludes fixed deposits with a maturity exceeding three months but not more than one year which are reported as Short-term investments of Baht 1,872 million in YTD Jun15, Baht 1,922 million in 2014 and Baht 2,718 million in 2013.

*Interest expense related to the purchase of common shares of Bangkok Chain Hospital PCL (doing business as "Kasemrad Hospital Group") to calculate interest coverage ratio was Baht 111 million based on remaining days after the transaction settled. Assuming this interest expense was incurred for the full year, interest expense from this transaction would be Baht 140 million and interest coverage ratio will be 12.9x **After adding back the YTD Jun15, 2014 and 2013 capitalized interest expense related to the campus expansion.

• Net debt to equity was 0.0x as at 30 June 2015 and 31 December 2014, as total debt as at 30 June 2015 remained lower than Cash and cash equivalents, leading to a net cash balance.

• The Company’s Interest coverage ratio improved to 23.3x in YTD Jun15 from 17.5x in YTD Jun14, due to higher EBITDA in YTD Jun15 compared to YTD Jun14. Interest expense has been reduced by Baht 27 million in both YTD Jun15 and YTD Jun14 for capitalized interest associated with the campus expansion project.

* ** **

**

PG.43

Dividend Payment

0.40 0.40 0.45 0.60 0.70 0.70

0.45 0.50 0.65

1.20 1.20 1.25

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2009 2010 2011 2012 2013 2014

Final

Interim

1.95 Bt per share

52.0%49.8%

50.6% 49.3%55.0% 52.0%

0%

20%

40%

60%

80%

2009 2010 2011 2012 2013 2014

The current dividend payout ratio remains at 50% of Net Profit.

0.88

1.10 0.90

1.80

Dividend Payment

Payout Ratio

1.90

PG.44

Agenda

Overview

Strategy

Operational Update

Financial Performance

Associated Companies

PG.45

Investment in Mongolia On 28 March 2014, Health Horizons Enterprises Pte. Ltd. (“HHE”), an overseas

subsidiary 80% owned by the Company, acquired 100% of the common shares of Bumrungrad Mongolia LLC (“BML”), which holds 51% of the common shares of Seoul Seniors Tower LLC (“SST”), for approximately USD 12 million in cash. Additionally, HHE provided a loan of USD 3.3 million to SST, which owns and operates Ulaanbaatar Songdo Hospital (“UBSD”) in Mongolia.

The seller of shares of SST is entitled to receive additional contingent consideration in

the form of earn-out payments, provided certain cumulative net profit targets are achieved through December 31, 2016, at the maximum of MNT 10,965.9 million, which has not yet been recorded.

HHE’s consolidated assets and liabilities, which include SST and BML as of the

acquisition date, are included in the Company’s consolidated financial statements for 1Q14. HHE has recorded the net tangible assets of SST and BML acquired at their fair values as of the acquisition date. The remaining excess of the purchase price over the net value of the tangible assets acquired was allocated as goodwill. The preliminary amount of goodwill, which excludes any impact from additional contingent consideration, is approximately USD 3.5 million.

PG.46

Surgery Staff in New OR

Hospital Building

Acquisition structure

• UB Songdo currently has 98 beds, diagnostic imaging, and 60 doctors in major medical specialties both inpatient and outpatient care

• One of 4 hospitals and only private hospital in Mongolia with a nationwide general hospital license

Ulaanbaatar Songdo Hospital (UBSD)