PRARAM 9 HOSPITAL Analyst Meeting: 4Q19 Results

12 March 2020

VISION &

MILESTONES

Professional Healthcare Communityใส่ใจสขุภาพ ดูแลดว้ยมอือาชพี

P.2

Operational Statistics & Financial Performance

2020 Key Strategies

2

3

Business Update & Project Update4

Overview & PR9’s Strengths1

Agenda

P.3

Operational Statistics & Financial Performance

2020 Key Strategies

2

3

Business Update & Project Update4

Overview & PR9’s Strengths1

Agenda

P.4

Increased registered capital to THB 600 mm

1st private hospital with 64 Slice CT Scan

Implementation of Pharmacy Robot

Signed Kidney referral MOUs

Started new building construction

1st private hospital with 640 Slice CT Scan

500 Kidney Transplant Cases

Started using4D Ultrasound

2016 20182017201320041992 2001 2005

Started hospital operation, with THB 400 mm registered capital

Listed in the Stock Exchange of Thailand, with THB 800

mm registered capital

2019

Excellence CG Scoring

P.5

2010

Accredit Effective Status by JCI

Accredited CCPC for Kidney Transplant

900 Kidney Transplant Cases

64 Slice CT Scan

4D Ultrasound

Company Milestones

Pharmacy Robot 640 Slice CT Scan MOU – Kidney Referral

Kidney TransplantJoint Commission International

2020

Telemedicine Platform

Company Overview- Started hospital operation in 1992 (registered capital of THB 400 mm) by the group of excellence doctors

who had the passion to build a high quality of hospital (Tertiary Care) with the reasonable price- Current capacity : 166 IPD beds and 114 OPD Exam rooms- JCI Accreditation : with 2 Medical Institutes and 22 Medical Centers

➢ Kidney Disease & Transplant Institutes (JCI CCPC, Clinical Care Program Certification)➢ Cardiovascular Institutes

- 4 Core Competency : Kidney / Diabetes / Cardio / Minimal Invasive Surgery - Highest number of Kidney Transplant cases among the private hospital in Thailand ( >900 cases)- No. of Doctor and Medical Staff :

More than 500 specialist doctorsDec 2019

Full Time Doctor 113

Part Time Doctor 456

Consultant 176

Nurse 351

Other Medical Staff 493

Other Department 486

Total 2,075

P.6

PR9 Overview Snapshot

2 Medical Institutes plus 22 Medical Centers

Me

dic

al

Ac

cre

dit

ati

on

Tech

no

log

yO

the

r K

ey A

ch

ieve

me

nts

✓2010 / 2013 / 2016 / 2019 – JCI (4th accredited)✓2016 / 2019 - CCPC: Kidney

✓2000 - ISO 9001:1994✓2003 - ISO 9001:2000

✓2004 / 2007 - HA Level 3

− 2017 : 640-slice CT Scan− 2016 : Pharmacy Robot − 2005 : 64-slice CT Scan− 2004 : 4D Ultrasound

2017: Best Utilization Award

AXA Provider Award

2017: Fertility Service Provider of the Year

Global Health and Travel Awards 2017

Imaging Center

(X-Ray)

Mind Center

Breast Clinic Hair Center

Eye Center

Obstetric

Gynecology Center

Orthopedic

Center

Medicine Center

Surgery CenterPediatrics

Center

Ear Nose and

Throat Center

Dental CenterCheck-Up

Center

Skin and Cosmetic

Laser Surgery Center

Physical Therapy &

Rehabilitation Center

Emergency Center

Gastroenterology (GI)

and Hepatobiliary

(Liver) Center

Neurology

Center

Diabetes & Metabolic

Center

Thyroid Center

Cardiovascular

InstituteKidney Disease &

Transplant Institute

W9 Wellness Center

Joint Care

Center

2019:Thailand Top Company Awards 2019: Healthcare Sector (2nd year)

Business+ magazine & University of the Thai Chamber of Commerce

2019:Excellent CG Scoring

The Stock Exchange of Thailand & Thai Institute of Directors

P.7

2019:Good Governance Hospital Certificate

Department of Internal Trade, Ministry of Commerce

2019:Thailand’s Most Admired Company: No.4 in Private Hospital Sector

BrandAge magazine

2019: Muang Thai Life Assurance Hospital Awards

1St Runner Up : Innovations Hospital Awards

PR9’s Strengths

➢ Complex Medical Treatments• Tertiary-care hospital with world class medical quality & Excellence Doctors

JCI Accreditation plus specialty accreditation (Kidney Transplant Institute)

➢ Value for Money Services • PR9’s Pricing policy with International Standard of tertiary care and high class service quality

=> Good Governance Hospital Certificate: Department of Internal Trade, Ministry of Commerce

➢ Strategic Location in New CBD• Prime location with strong healthcare demand and promising growth opportunities

=> High density populated area (office building / residential commute / embassy / life-style center etc.), including the new Chinese expat community

P.8

Complex Medical Treatments & Excellence Doctors

“โรคซับซ้อน โรคเรื้อรงั เราเชี่ยวชาญ”ด้วยทีมแพทยเ์ฉพาะทาง มากกว่า 500 ท่าน

P.9

JCI Accreditation

JCI Accreditation - Hospital Program Since 2010The 4th Accredited : 22 November 2019

Clinical Care Program Certification: Kidney The 2nd Accredited : 26 November 2019

P.10

Value for Money Services

One of our philosophy : We aim to deliver excellence medical care in consideration of “Value for Money” for our patients

P.11

Received the “Green-Rated” HospitalFrom Department of Internal Trade, Ministry of Commerce

: Offer Friendly Medicine Pricing for the Patientshttps://hospitals.dit.go.th/app/drug_price_search.php

Value for Money Services

Date: 19 December 2019

Received “GGH (Good Governance Hospital) certificate”From Mr. Jurin Laksanawisit, Deputy Prime Minister and Minister of Commerce

P.12

Strategic Location in New CBDLocated in New CBD area &

New China-Town (Huai Khwang-Ratchada)

Note (1): Include Huaykwang, Makkasan, Klong TeoyNuea, Klong Tun Nuea, Bangkapi, Dindang area

P.13

Operational Statistics & Financial Performance

2020 Key Strategies

2

3

Business Update & Project Update4

Overview & PR9’s Strengths1

Agenda

P.14

73.9 157.2

284.5

-0.050.050.150.250.350.450.550.650.750.850.95

0.0100.0200.0300.0400.0

4Q2018 4Q2019 2018 2019

25.8133.3 371.5

511.2

-0.050.050.150.250.350.450.550.650.750.850.95

0.0100.0200.0300.0400.0

4Q2018 4Q2019 2018 2019

712.4 739.1

0.0500.0

4Q2018 4Q2019

Financial Summary▪ PR9 reported total medical revenue in 2019 of Baht 2,848.5

million, an increase of 5.5% from 2018. As a results of an increase of OPD revenue 6.0% yoy, while IPD revenue in 2019 slightly increased at 4.8% yoy.

▪ Medical revenue from international patients grew 12.5% yoy. ▪ While insurance and corporate contract payment methods keep

growing at 14.9% and 8.7% yoy, respectively as a result of marketing campaigns and marketing activities.

Med

icalR

even

ueEB

ITDA

Net P

rofit

▪ PR9 reported EBITDA in 2019 of Baht 511.2 million, an increase of 37.6% from Baht 371.5 million in 2018, while the EBITDA margin were 17.7% in 2019 and 13.6% in 2018. This was mainly from the higher record of one-time expenses in 2018.

▪ In 2019, PR9 reported profits for the period Baht 284.5 million, an increase of 80.9% from Baht 157.2 million in 2018, representing the net profit margin for the period of 9.8% and 5.8% respectively.

18.6%538.8

0.0

500.0

2018 2019

2,701.1 2,848.5

3.6%17.7% 13.6% 17.7%18.8%

514.3

10.6%306.6

-4.5%9.8% 5.8% 9.8%

10.9%296.7

P.15

19.7%142.2

-32.7

11.9%85.7

Total Revenue

P.16

Total Revenue

349.1 352.6 388.1 404.6 374.3 376.0 419.1 414.8

1,494.3 1,584.2293.3 283.0 322.7 307.9 320.9 294.7 324.4 324.3

1,206.81,264.3

10.9 6.4 5.2 9.8 9.1 9.1 9.7 13.3

32.441.2

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019

OPD Revenue IPD Revenue Other revenueUnit: THB mm

(45%)(55%)

(44%)(56%)

(46%)(54%)

(45%)(55%)

(43%)(57%)

(46%)(54%)

(45%)(55%)

(44%)(56%)

653.3 642.0 716.0 722.3 704.3 679.8

2,733.52,889.7

752.4

(44%)(56%)

+4.2% YOY

+5.7% YOY

753.2

(44%)(56%)

Total Revenue +4.2%Medical Revenue +3.7%

OPD +2.5%IPD +5.3%

612.7 644.2

109.6 108.2

4Q18 4Q19

Thai Inter

+5.1%

-1.3%

Revenue Breakdown : 4Q18 & 4Q19

Unit: THB mmTotal Revenue

535.9 538.1

128.4 157.6

58.0 56.7

4Q18 4Q19

Self Pay Insurance Contract Comp.

-2.2%

+0.4%

+22.7%8%

18%74%

8%21%72%

404.6 414.8

307.9 324.3

9.8 13.3

4Q18 4Q19

OPD IPD Other rev.

45%55%

By Payor Revenue

By Nationality Revenue

44%56%

86%15%85%

722.3752.4

P.17

14%

Total Revenue +5.7%Medical Revenue +5.5%

OPD +6.0%IPD +4.8%

2,306.2 2,404.1

395.0

2018 2019

Thai Inter

+4.2%

+12.5%

Revenue Breakdown : 2018 & 2019

Unit: THB mmTotal Revenue

2,046.3 2,105.1

505.7 581.2

149.2 162.2

2018 2019

Self Pay Insurance Contract Comp.

+8.7%

+2.9%

+14.9%5%

19%76%

6%20%74%

1,494.4 1,584.2

1,206.8 1,264.3

32.0 41.2

2018 2019

OPD IPD Other rev.

45%55%

By Payor Revenue

By Nationality Revenue

45%55% 16%

84%15%85%

2,733.2 2,889.7

P.18

444.4

115

105106

117116

4Q18 1Q19 2Q19 3Q19 4Q19

Key Operational Volume

Unit: ’000 visits

OPD Visits

OPD

+0.9% (YOY)

IPD Average Daily Census (ADC)

105 10691

109 107

4Q18 1Q19 2Q19 3Q19 4Q19

IPD

+1.3% (YOY)

P.19

Occupancy Rate : Normal Ward, ICU-CCU

125142 142 142 142 142 142

24 24 24 24 24 24 24

P.20

125

142 142 142 142142 142 142

24 24 24 24 24 24 24 24

74.3%

55.9%70.0% 61.5% 61.4%

52.4%

64.6% 62.5%73.6%68.3%

74.2%74.3% 77.8%

72.7% 73.4% 74.7%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

Normal Ward ICU-CCU Ward Occupancy Rate ICU-CCU Occupancy Rate

101.6 98.2 145.9 25.8 143.4 83.9 150.6 133.3

371.5 511.215.5% 15.3%20.4% 20.4%

12.3%20.0% 17.7%

13.6% 17.7%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 2018 2019EBITDA EBITDA Margin

52.0 50.4 87.3 86.1 35.7 88.8 73.9157.2

284.58.0%

7.8%

12.2%

-4.5%

12.2%

5.2%11.8% 9.8%

5.8%9.8%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 2018 2019Net Profit Net Profit Margin

197.9 186.9 227.1 225.1 224.8 181.5 237.6 232.3

30.8% 29.4% 32.0% 31.6% 32.3% 27.1%32.0% 31.4% 31.0% 30.8%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 2018 2019Gross Profit Gross Profit Margin

Profitability : 4Q19 & 2019

Unit: THB mm

Gro

ss

Pro

fit

EB

ITD

AN

et

Pro

fit

Unit: THB mm

Unit: THB mm

142.2

85.7

3.6%

11.9%

19.7%

538.816.4%

57.88.5%

111.5

18.6%

10.6%

197.029.4% 891.7

836.9

306.6

-32.7

876.2

31.3%

296.710.9%

P.21

124.619.4%

71.511.1%

514.318.8%

Balance Sheets

P.22

2,0491,643

2,136 2,862

239211

2018 2019Current Asset PPE Other LT Asset

Total Assets

449 523102 155

3,8734,039

2018 2019Current Liabilities Non-Current Liabilities Equity

Total Liabilities & Shareholders' Equity

4,424 4,4244,717 4,717

+726 / (+34.0%)

-406 / (-19.8%)

-28 / (-11.8%)

+166 / (+4.3%)

+74 / (+16.5%)

+52 / (+51.3%)

Balance Sheets

Solid Balance Sheets

1,669 1,881 2,095

3,873 4,039380413

762

551 678

2015 2016 2017 2018 2019

Equity Liabilities

Unit: THB mm

2,049 2,2942,857

4,424 4,717

“None of IBD (Interest Bearing Debt) Outstanding”

0.23 0.22

0.36

0.14 0.17

2015 2016 2017 2018 2019

D/E Ratio

D/E Ratio

P.23

Operational Statistics & Financial Performance

2020 Key Strategies

2

3

Business Update & Project Update4

Overview & PR9’s Strengths1

Agenda

P.24

Branding

Digital Hospital

Top Line Initiatives

Top Line Initiatives Digital Hospital Branding• New Market Penetration• Product/Price Customization • Effective Brand & Marketing

Communication • Conversion & Referral• CRM & Database Marketing

• Optimize Clinical Outcome• Enhance Customer & Provider

Experience• Improve Operational Efficiency

• High Caliber Doctors & Medical Experts• Advance Tool and Technology• Deliver Services from our Heart• Great Space & Facility• New Healthcare Lifestyle Community• Being Loved by Community

PR9 : 2020 KEY STRATEGIES

P.25

P.26

Top Line

Initiatives

Network

Expansion &

Cooperation

Corporate

& Insurance

Coverage

Int’l

Patient Expansion

1. New Market Penetration

2. Product / Price Customization (Matching)

3. Effective Brand & Marketing Communication (Online & Offline Activities)

4. Conversion and Referral

5. CRM and Database Marketing

Top Line Initiatives : 2020Target Segment

Digital Hospital

Optimize clinical

outcome

Enhance customer &

provider experience

Improve operational efficiency

• Telemedicine • Remote Healthcare

Digital Hospital : 2020

P.27

P.28

Operational Statistics & Financial Performance

2020 Key Strategies

2

3

Business Update & Project Update4

Overview & PR9’s Strengths1

Agenda

P.29

Kidney Transplant Cases

Network Expansion and Medical Cooperation

Medical Network for Kidney Transplant

P.30

82 84

2018 2019

1321

Jan-Feb 2019 Jan-Feb 2020

1. โรงพยาบาลตรงัรวมแพทย ์ 2. โรงพยาบาลสริเิวช จันทบุร ี 3. โรงพยาบาลราษฎรย์นิด ีหาดใหญ ่ 4. โรงพยาบาลปากน า้โพ นครสวรรค ์ 5. โรงพยาบาลอบุลรกัษ ์ธนบุรี 6. โรงพยาบาลนรินัดรก์ารแพทย์ (NEW)

7. โรงพยาบาลทกัษณิ สุราษฎรธ์านี 8. โรงพยาบาลสโิรรส ยะลา 9. โรงพยาบาลสโิรรส ปัตตานี10. โรงพยาบาลธนบรุ ีชุมพร 11. โรงพยาบาลธนบรุ ีทุ่งสง (NEW)

12. โรงพยาบาลศริเิวช ล าพนู (NEW)

2020 Target : 20 Hospitals NationwidePlus Cardiology & Cancer Center Network

PR9 Kidney Transplant Teams

Business Partner Cooperation

P.31

Domestic Patients

P.32

Domestic Market Initiative

Self-Pay Customers• Promotion Campaign : By SBU • Occasional Campaign : C Up Anniversary Packages• Zero Lost customers• Online Selling Platform

Corporate and Insurance• New Market Penetration• Package Customization for each company• Zero Lost Insurance Customer• Loyalty Program for Corporate and Insurance Customers• Online Platform

Purchase Flow (Walk-in)

Patient Purchase Intension

Patient Purchase at CRD Counter

Receive invoice /Register

in SSB

Register Coupon

Use voucher / Privilege

**Patients have to show the passport and visa details as evidences for application.

Distribution Channel• Online• On-Ground • Co-Branding • Chamber of Commerce & Embassy• Friend-Get-Friends

Expat Premium Card

Other Market Initiative : EXPATRIATES

P.33

MYANMAR & CAMBODIA FACEBOOK :

CHINESE MEDIA :

International Marketing Activities

P.34

KICK OFF : TELEMEDICINE

Doctor Anywhere Head Quarter (Singapore) Visited

1st Project: “Cigna Inter + DA + PR9”• Cigna > 3,000 expats (Cigna customers –

High executive level)• Press releases on 25th February 2020

Following Projects with Telemedicine platform• Myanmar patients• Int’l company branches in BKK (Singapore)• Thai Banks, open DA+PR9 clinic at head office• Other Markets like Cambodia, Japan & Other

P.35

Telemedicine Platform

2019 Thailand’s Most Admired Company :

Ranking No.8 in Total Hospital Group / No.4 in the Private Hospital CompanyBy “BrandAge Magazine”

P.36

2019 Hospital Awards : Muang Thai Life Assurance

1St Runner Up : Innovations Hospital Awards

P.37

Muang Thai Life Assurance Hospital Awards 2019

Date: 18 February 2020

Preparedness for COVID-19

P.38

Patient Screening Point for surveillance of the COVID-19 when entering to the Hospital

Where we are today Where we want to be

New Building(Wellness & Life Style)

Renovated Existing Building(Chronic)

Offer Comprehensive Medical Services Health Promotion/ Disease Prevention / Curative Medicine / Rehabilitation

Recognized complex medical treatments providers

Health Promotion Disease Prevention Curative Medicine Rehabilitation

Leverage expertise to build new customers base• Lifestyle Medical Center• Aging-related Medical Center• Cancer Center

✓

Scale and scope of services expansion

Land : 2-3-89 RaiUsable Area : 24,500 m2

OPD Room : 83 Exam RoomsIPD Room : 59 Ward BedsParking : 381 Cars

Land : 6-0-74 RaiUsable Area : 32,825 m2

OPD Room : 114 Exam RoomsIPD Room : 166 Ward Beds

(plus 88 beds : future project) Parking : 449 Cars

P.39

A B

Existing Building1. Praram 9 Kidney Transplant Institute2. Praram 9 Cardiovascular Institute3. Diabetes and Metabolic Center4. Praram 9 Orthopedic Center5. Obstetrics Gynecology Center6. Surgery Center7. Mind Center8. Neurology Center9. Emergency Center10. Rehabilitation Center11. Radiology Center12. Breast Clinic 13. Thyroid Clinic14. Joint Care Center15. W9 Wellness Center

New Building1. Comprehensive Gastrointestinal and Liver Center2. Comprehensive Check-up Center3. Pain Management and Wellness Center4. Allergy Center5. Pediatric Center6. Dental Center7. Mind Center8. Ear Nose and Throat Center9. Eye Center10. Skin and Cosmetic Surgery Center11. Hair Center

New Hospital Building – Building B

P.40

Building BB2-B1 : Parking, Community Lounge, Food CourtFl.1-2 : Registration, ER, Event Space, Retail, ParkingFl.3-6 : ParkingFl.7 : GI Scope, OR, Recovery RoomFl.8 : OPD GI, EYE Center, ENT Center,

Pharmacy, Cashier Fl.9 : Hair Center, Skin Center, Mind Center, X-Ray, LabFl.10 : OPD Pediatric, Dental CenterFl.11 : Pain Management & Wellness Center Fl.12 : Check-Up Fl.14 : Data Center, IT, Function Area, Executive Office,

IPD PharmacyFl.15-17 : IPD Ward, VIP Room, VIP Lounge

Construction Progress – Building B

P.41As of January 2020

Construction Progress – Building B

: Fl.1- Registration - ER- Event Space

P.42As of January 2020

Construction Progress – Building B

: Fl.7 – Operating Room / Recovery Room / GI Scope

P.43As of January 2020

Construction Progress – Building B

: Fl.8 - Pharmacy, Cashier

P.44As of January 2020

Construction Progress – Building B

: Fl.9 – X-Ray, Lab, Hair, Skin, Mind Center

P.45As of January 2020

Construction Progress – Building B

: Fl.11 - Pain Management & Wellness Center

P.46As of January 2020

Construction Progress – Building B

: Fl.15 – IPD Ward P.47As of January 2020

Construction Progress – Building B

: Fl.17 – IPD Ward

P.48As of January 2020

: Back Office Building: Nurse Condominium

Construction Progress – Office & Nurse Condominium

P.49

Corporate Social Responsibility

P.50

Knowledge Dissemination and Enhancement Activities Social and Community Support Activities

“Thank You”