PARKWAY CONTINUES STRONG PERFORMANCE IN Q3 2009

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1 PRESS RELEASE PARKWAY CONTINUES STRONG PERFORMANCE IN Q Highlights: Strong quarterly group revenue of $259.0 million, an 8% increase over Q Net profit for the quarter excluding exceptional items jumps 103% to $32.2 million Singapore hospitals enjoy increase in inpatient admissions and net revenue per adjusted patient day International hospital operations and healthcare services deliver strong performance Performance At A Glance Revenue ($'000) EBITDAR* ($'000) PATMI ($'000) PATMI ($'000) (Excluding exceptional items (net of tax)) Q Q3 2008^ Variance YTD 30 Sep 2009 YTD 30 Sep 2008^ Variance 259, ,352 8% 755, ,199 7% 63,844 51,189 25% 181, ,676 18% 32,471 11, % 94,059 59,098 59% 32,176 15, % 85,658 63,402 35% Basic EPS (cents) % % Basic EPS (cents) (Earnings excluding exceptional items (net of tax)) % % 30 Sep Dec 2008 Variance NAV / share ($) % NTA / share ($) % Note: ^: Comparatives have been restated for change in accounting policy during the year. *: Comparative EBITDAR is restated to exclude fair value gain on fair value of financial instruments through profit or loss. 1

2 SINGAPORE, 12 November 2009 Parkway Holdings Limited ("Parkway" or "the Group") is pleased to report a strong set of results for its third quarter ended 30 September 2009 (Q3 2009). The Group saw a 7% rise in revenue to $755.4 million for the year-to-date ended 30 September 2009 (YTD 2009) as compared to $704.2 million in YTD EBITDAR for YTD 2009 was $181.9 million, a 18% rise over YTD Excluding exceptional items, net profit grew from $63.4 million in YTD 2008 to $85.7 million in YTD 2009, a 35% increase. Parkway s basic EPS, excluding exceptional items was 7.60 cents for YTD 2009, a 16% rise over the corresponding period of 6.53 cents. In terms of quarterly performance, Parkway saw its revenue rise by 8% for Q to $259.0 million versus $239.4 million in Q EBITDAR rose 25% from $51.2 million in Q to $63.8 million in Q Excluding exceptional items, net profit climbed to $32.2 million in Q3 2009, a 103% jump over the corresponding period of $15.9 million. Basic EPS, excluding exceptional items, grew 102%, from 1.41 cents in Q to 2.85 cents in Q Parkway s NAV per share grew 7% to $1.27 as at 30 September 2009 from $1.19 as at 31 December Parkway s Singapore operations remain the chief source of the Group s revenue, contributing 64% for the nine months ended 30 September YTD EBITDAR from the Singapore hospitals segment remained stable, while the Singapore healthcare services segment reported a 74% increase in EBITDAR to $32.6 million in YTD 2009 from $18.7 million in YTD The Group s international hospital operations reported a 41% jump in EBITDAR from $23.5 million in YTD 2008 to $33.1 million in YTD The international healthcare services segment saw an 17% rise in EBITDAR from $21.0 million in YTD 2008 to $24.6 million in YTD Dr Lim Cheok Peng, Executive Vice Chairman and Chief Executive Officer of Parkway Holdings Limited, said, "We have seen growth across all segments, from our hospitals to our healthcare services, both in Singapore and internationally. We believe this is an indication of the recovery of the healthcare industry. However, we remain cautious and will 2

3 continue to work hard to improve our service offerings and manage costs, to ensure consistent growth for the Group. Singapore Operations The Group s revenue for YTD 2009 for its Singapore operations rose from $476.7 million to $481.7 million, a 1% increase from the same period last year. Similarly, YTD EBITDAR for the Singapore operations registered an increase of 12% to $124.1 million. At the Singapore hospitals, Parkway saw a 3% drop in revenue to $348.9 million in YTD EBITDAR grew by 1% to $89.1 million. With increases in admissions, the Singapore Hospitals rebounded from the lows recorded in Q to Q Inpatient admissions and day cases reached 12,014 and 8,767 cases respectively in Q Net revenue per adjusted patient day rose to $1,902 in Q Demand for the Group s 40 fixed-fee medical packages launched earlier this year remains strong. As at September 2009, close to 3,000 packages have been taken up. Growth in healthcare services in Singapore contributed to the Group s strong performance. Under the Singapore healthcare services segment, the Group saw a 16% increase in revenue to $128.3 million and a 74% increase in EBITDAR to $32.6 million. The strong performance is contributed by Parkway Shenton, which renewed several major corporate accounts. The Group continued its efforts in upgrading its hospital facilities to ensure quality service to patients. These include: upgrading of High Dependency Units and Intensive Care Units at Mount Elizabeth Hospital and the maternity ward at Gleneagles Hospital, refurbishment and expansion at East Shore Hospital to include additional new specialist clinics, such as the Eagle Eye Center, which offers comprehensive eye services; Dermatology Associates, which provides skin services; Haig Specialists Medical Clinic; and Edward Foo Surgery. Development of Parkway s new hospital and medical centre in Novena continues to progress well. Parkway is targeting to submit its building plans for the new hospital and 3

4 medical centre to the Building Construction Authority (BCA) by November of Approval from BCA is expected by the first quarter of Parkway also aims to put out its tender for the main construction of the new hospital by the end of International Operations Parkway s international operations saw consistent growth. The Group s revenue for YTD 2009 for its international operations rose from $227.5 million to $273.7 million, a 20% increase from the same period last year. Similarly, EBITDAR for the international operations registered an increase of 31% to $57.8 million due to strong demand for services from both its hospitals and healthcare divisions. Under the international hospitals, revenue rose 28% to $175.9 million for the period ended 30 September EBITDAR grew by 41% to $33.1 million in the same period. For the international healthcare segment, Parkway saw an 8% rise in revenue to $97.8 million in YTD EBITDAR grew by 17% to $24.6 million. In Southeast Asia, Parkway s performance continues to remain strong particularly at its Pantai Hospitals. The Southeast Asia hospitals saw a 4.9% rise in admission and 11.7% rise in net revenue per adjusted patient day. Average occupancy levels rose 2.1% to 65.6% for Q The acquisition of the properties of Pantai Hospital Batu Pahat and Pantai Hospital Sungei Petani has been successfully completed in this quarter. In South Asia, admissions and net revenue per adjusted patient day rose by 1.0% and 8.4% respectively. The hospitals saw a 1.9% decline in average length of stay and a 9.9% decline in occupancy levels. A new comprehensive oncology centre project is in progress at Apollo Gleneagles Hospital, Kolkata, while construction of the ParkwayHealth Khubchandani Hospital will begin in Q1 of In China, the Group has introduced new programmes and services such as the weight-loss management programme and corporate clients counseling services to expand its range of services. 4

5 Looking Ahead As the market shows signs of recovery, Parkway expects further improvement to its admissions and revenue intensity. The demand for healthcare services in Singapore remains strong given the ongoing Influenza A (H1N1) concerns. The Group expects continued demand for quality healthcare services in the region and have increased its services offering to meet this demand. In November 2009, Parkway (Shanghai) Hospital Management Limited entered into a cooperation agreement with a Chinese partner to establish two new medical centres in Shanghai, China, subject to approval from the relevant authorities. Parkway is also exploring management contracts and management consultancy arrangements in Vietnam and the Middle East. Dr Lim said, We are optimistic on the growth prospects of the private healthcare industry, both in Singapore and the region. We are particularly excited about the upcoming sale of our medical suites at Novena and our ongoing expansion plans in Malaysia. Parkway reaped benefits from its cost containment and revenue maximisation measures undertaken since late 2008, and will continue to review and implement these initiatives. No interim dividend has been declared this quarter. Barring unforeseen circumstances, the Board intends to resume payment of an appropriate dividend at the end of this financial year. -END- 5

6 About Parkway Holdings Limited Parkway Holdings Limited (SGX: Parkway) is one of the region's leading healthcare service providers, with a network of 16 hospitals and medical centres with more than 3,300 beds throughout Asia, including Singapore, Malaysia, Brunei, India and China. In Singapore, the Group owns Parkway Group Healthcare Pte Ltd and Parkway Hospitals Singapore Pte Ltd, which operates three of Singapore's premier healthcare providers: East Shore, Gleneagles and Mount Elizabeth Hospitals. The Company also owns Parkway Shenton Pte Ltd, a major provider of primary healthcare services; Medi-Rad Associates Ltd, a leading radiology services provider; and Parkway Laboratory Services Ltd, a major provider of laboratory services. GleneaglesCRC Pte Ltd, an award-winning Clinical Research Organisation in the Asian-Australasian region and wholly-owned subsidiary of Parkway Holdings, also provides contract research services for the Group. In addition, Parkway Trust Management Limited provides management services to Parkway Life REIT, while Parkway Education Pte Ltd offers healthcare education through Parkway College of Nursing and Allied Health. The Group also operates 39 ParkwayHealth Patient Assistance Centres (PPAC) across the globe. For more information, please visit the website at About ParkwayHealth ParkwayHealth is a leading healthcare group based in Singapore, operating 16 hospitals with more than 3,300 beds in Asia, as well as patient assistance centres throughout the world. It has an extensive network across Asia, Europe and the Middle East with ParkwayHealth Patient Assistance Centres (PPAC) in Bangladesh, Brunei, Cambodia, China, India, Indonesia, Malaysia, Mongolia, Myanmar, Pakistan, the Philippines, Russia, Saudi Arabia, Sri Lanka, Ukraine, the United Arab Emirates and Vietnam. With a team of more than 1,200 accredited specialists covering 40 different specialties, ParkwayHealth is committed to its vision to be a global leader in value-based integrated healthcare. For more information, please visit the website at: For more information, please contact: Kreab Gavin Anderson Ang Shih-Huei sang@kreabgavinanderson.com Mobile: Lim Yuan See ylim@kreabgavinanderson.com Mobile: