Investor Presentation Slides

Transcription

1 Investor Presentation Slides 1

2 Safe Harbor Statement This presentation was prepared for informational purposes only and shall not be copied, or relied upon by any other person for whatever purpose. This presentation must be viewed in conjunction with the oral presentation provided by officers of Raffles Medical Group. Nothing in this presentation constitutes accounting, legal, regulatory, tax or other advice. The reader(s) of this document should consult his/her own professional advisors about the issues discussed herein. This presentation is not intended as an offer or solicitation with respect to the purchase or sale of any investment product and nothing herein should be construed as a recommendation to transact in any investment product.

3 Name of the practice was changed to Raffles Medical Group (RMG) RMG opened its first overseas clinic in Hong Kong Raffles Hospital commences operations on 31 Mar RMG opened its first medical centre in Shanghai RMG purchases land adjacent to Raffles Hospital for hospital extension project Dr Loo Choon Yong and Dr Alfred Loh took over Teng's Clinics at Cecil Street and Maxwell House on 1 Aug Raffles SurgiCentre opened on 18 Sept as the first standalone day surgery centre in Southeast Asia RMG became the first fullfledged healthcare provider to be publicly listed in Singapore on 11 Apr Raffles Hospital received the Joint Commission International accreditation in Jan RMG purchases Holland Village property, part of which will be used for outpatient medical and specialist clinics

4 A leading regional integrated healthcare organisation Tertiary Care Specialist Care Primary Care

5 Primary care One of the largest network of private family medicine clinics in Singapore^ Clinic network in Hong Kong and medical centre in Shanghai More than 9,000 corporate clients in Singapore and Hong Kong Multi-specialty practice to more than 2 million patients in Singapore ^Map of clinics can be found in the Annex

6 Raffles Specialist Centres Raffles Healthscreeners Raffles Cancer Centre Raffles Children s Centre Raffles Cancer Centre Raffles Fertility Centre Raffles Eye Centre RAFFLES MEDICAL GROUP Raffles Chinese Medicine Raffles Counselling Centre Raffles Executive Medical Centre Raffles Dental Raffles ENT Centre Raffles Dialysis Centre Raffles Diabetes & Endocrine Centre Raffles Children's Centre

7 Raffles Specialist Centres Raffles Women s Centre Radiology Raffles Heart Centre Raffles Internal Medicine Centre Raffles Heart Centre Raffles Urology Centre Raffles Surgery Centre RAFFLES MEDICAL GROUP Raffles Japanese Clinic Raffles Neuroscience Centre Raffles Skin & Aesthetics Raffles Rehabilitation Centre Raffles Pain Management Centre Raffles Nuclear Medicine Raffles Orthopaedic Centre Raffles Women's Centre

8 Raffles Hospital Wards Rooms ranging from suites to six beds Labour Ward and Delivery Suites Nursery Neonatal Intensive Care Unit (NICU) 12 Operating Theatres Day Surgery Intensive Care Unit Radiology Clinical Laboratory Rehabilitation Delivery suites

9 Raffles Hospital 24-Hour Emergency Accident and Emergency Services Ambulance Transfers House / Hotel Calls Specialist on call X-ray and lab services 9

10 Raffles International Patient Centre ~1/3 of our hospital patients are foreigners coming from more than 100 countries Raffles International Patients Centre is organised for international patients to have their medical problems investigated and diagnosed, with a treatment plan, within 24 hours Translation services available for Arabic Mandarin Russian Khmer Japanese Thai Bengali Korean Vietnamese Bahasa Indonesia Burmese

11 Raffles is the only integrated private healthcare provider in Singapore operating under the group practice model Doctors are employees of the Group, as opposed to individual doctors having their own practices Doctors adhere to protocols and fee schedules set by the hospital Physicians and specialists provide seamless multi-disciplinary teambased care Cost effective care for patients and payors Integrated & Coordinated Care

12 Case notes are shared by the team of doctors Care episodes are reviewed by medical and surgical audit committees to ensure quality consistency Surgical Audit Committee

13 Similar clinical governance model as some of the top medical institutions in the world 13

14 Historical Annual Performance

15 In S$mn

16 Investment 3% Healthcare Services 34% Hospital Services 63% Source: FY 2013 Annual Report on Segment Reporting

17 In S$mn Note: The Profit after Tax excluded fair value gain of investment properties [2007:S$12.5m, 2009:S$0.6m, 2010:S$3m, 2011:S$2.2m, 2012:S$3.9m, 2013:S$3.9m] and gain on disposal of a subsidiary [2013:S$20.4m]

18 Healthcare Services 9.1% 7.7% 8.7% 9.2% 8.7% 8.5% Hospital Services 22.0% 24.7% 24.9% 24.2% 23.2% 24.6% Group* 19.1% 19.9% 20.3% 20.3% 19.5% 20.1% * The Segment Profit Before Tax excluded fair value gain of investment properties [2009:S$0.6m, 2010:S$3m, 2011:S$2.2m, 2012:S$3.9m, 2013:S$3.9m] and gain on disposal of a subsidiary [2013:S$20.4m]

19 Ordinary Dividend (cts) Special Dividend (cts) Payout Ratio 41% 41% 40% 42% 43% 43%* Dividend Yield 3.6% 2.2% 1.6% 1.9% 1.5% 1.7% *Excluding gain on disposal of a subsidiary of $20.4m in 2013 (2012:nil)

20 Expansion Plans

21 Acquisition of land adjacent to current Raffles Hospital site Estimated additional 220,000sqf of space, increasing GFA to approximately 530,000sqf Expand existing services and develop new healthcare facilities and services Estimated S$310mn total development costs, including land cost and refurbishment of existing hospital Artist s impression Expected construction period of 24 months

22 Acquisition of property at Holland Village Redevelopment to achieve GFA of 62,720sqf Expand medical and specialist services to Holland Village Artist s impression Estimated S$120mn total development costs, including land cost and construction costs Expected construction period of 24 months

23 Signed Letter of Intent to build a private hospital in Shenzhen Signed Framework Agreement to build a private hospital in Pudong, Shanghai

24 3Q 2014 Performance

25 PAT grew 11.0% to S$15.5m Q S$ 000 Q S$ 000 % Change Revenue 85,050 94, EBITDA 18,848 20, Operating Profit 16,783 18, Profit Before Tax 16,996 18, Profit After Tax 13,964 15, Diluted EPS (cents) Net Asset Value (cents) 85.31* *As at 31 December 2013

26 11.1% revenue growth achieved to reach S$94.5m NEW SPECIALISTS INPATIENT ADMISSIONS / PATIENT LOAD KEY TOPLINE GROWTH DRIVERS PROVISION OF HEALTHCARE INSURANCE SERVICES CLINIC NETWORK

27 Revenue from Hospital Services and Healthcare Services increased by 7.3% and 16.4% respectively 20.0% 15.0% 10.0% 5.0% 14.3% 14.7% 4.8% 4.9% 16.4% 7.3% 0.0% Q Q Q Healthcare Services Hospital Services

28 S$ millions Healthy cash position of S$124.5m as at 30 Sep (10.2) (4.8) Cash at 30 Jun 14 Operating cashflow Investing cashflow Financing cashflow Cash at 30 Sept 14

29 Sep 2014 Share Price S$0.32 * S$3.85 Market Capitalization S$93.1 million S$2.17 billion 11 Apr 1997: $0.32 * 30 Sept 2014: $3.85 ~1,356% or 17% p.a. *Adjusted rights issue 3 for 10 and bonus issue

30 Annex

31 Jurong Point Jurong East Sixth Avenue Clementi Sembawang Way Causeway Point Woodlands Industrial Northpoint Park D Yew Tee Point Seletar Mall Lot 1 Science Park 1 Anchor Point Bishan Ngee Ann City Toa Payoh Central Centrepoint Raffles City Raffles Place Anson Centre Maple Tree Business City Harbourfront Ang Mo Kio NEX Asia Square Capital Tower Raffles Hospital Compass Point Hougang Central I12 Katong Marina Square Marina Bay Financial Centre 80 Robinson Road White Sands Changi City Point Tampines 1 Bedok North Bedok Mall Siglap Centre Loyang Point Changi Business Park Terminal 2 Terminal 3 Transit 1 Transit 2 Transit 3

32 Expenditure (US$ billions) APAC Healthcare Expenditure CAGR % 17.6% 3.1% 16.8% 14.9% 10.4% 5.8% 11.4% 6.5% 1,200 1, , Healthcare expenditure will continue to experience growth in the next 6 years in the APAC region as rising patient demands for better healthcare result in healthcare reforms in the region as well as increasing life expectancy resulting in more elderly requiring long-term care Source: Frost & Sullivan

33 Consumer Price Indices: Household Healthcare Expenditure Consumer Price Indices (CPI) General CPI Healthcare CPI Household Healthcare Expenditure 1997/ / /08 Proportion of monthly Household Expenditure spent on Healthcare 1,2 (%) (by income quintiles) All Households Lowest 20% nd quintile rd quintile th quintile Highest quintile Notes: 1 Based on Resident Households 2 Income quintiles are based on ranking of households by their monthly household income from all sources (excluding imputed rental of owner-occupied accommodation) per household member Source : Ministry of Health, Singapore

34 Favourable Demographics: A Growing, Ageing Population Significant increase in population aged from 2000 to 2013 Median age of resident population rose from 34.0 years in 2000 to 38.9 years in 2013 Source: Department of Statistics, Singapore

35 Favourable Demographics: A Growing, Ageing Population Total Population ( 000) 5, , , ,399.2 Singapore Residents ( 000) 3, , , ,844.8 Age of Singapore Residents % below 15 years % years % 65 years & above Source : Ministry of Health, Singapore