en company presentation q3
PT Siloam International Hospitals Tbk
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
given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these
statements speak only as of the date hereof, and SILO undertakes no obligation to update or revise any of them, whether as a result of
new information, future events or otherwise.
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
Appendices
26
27 - 33
Lippo Group
01
4
Where We Are In Lippo Karawaci
02
5
Highly Experienced & Professional Management
03
6
Board of
Commisioners
Ketut Budi Wijaya
President
Commissioner
Theo L. Sambuaga
Commissioner
Agus Benjamin
Commissioner
dr. Gershu Paul
President Director
dr. Grace Frelita
Director, Global
Quality Development
Romeo Lledo
Director, Accounting
and Finance
Farid Harianto
Independent
Commissioner
Prof. Dr. H. Muladi, S.H Ir. Jonathan L. Parapak
Independent
Independent
Commissioner
Commissioner
Board of
Directors
*) Universitas Pelita Harapan Medical Science Group
S.Budisuharto
Prof. George Mathew
dr. Anang Prayudi
Director, Strategy and Director, Network and President, MRIN, UPH
Marketing
& UPHMS*
Development
Development Group
The Vision
04
7
5 Year Vision…
•
International
Quality
Reach
Godly
Compassion
Scale
Affordable and Accessible Healthcare
to all socio economic segments
•
•
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
Nationwide Hospitals Network & Market
Catchment
Sumatra Population :
50.6 mio
Sulawesi Population :
17.4 mio
05
8
Current
Direct Target Market
Population – 33 Million
Maluku Population :
2.6 mio
Kalimantan Population :
13.8 mio
Papua Population :
3.6 mio
Java Population :
136.6 mio
Nusa Tenggara Population :
9.2 mio
Bali Population :
3.9 mio
Operating hospitals
Greater Jakarta Population :
28 mio
Jakarta Population :
10 mio
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
19 hospitals currently in various
stages of development
11 Siloam Sriwijaya
12 Siloam Hospitals Cinere
13 Siloam Hospitals Bali
14 Siloam Hospitals Simatupang
Opening in 2H 2013-2014
6-8 hospitals
Opening in 2015 – 2017
18 -20 hospitals
The Journey
06
9
2017
SHLV – Indonesia’s First Hospital to be
Accredited and Re-accredited by JCI
(2007, 2010 and 2013)
SH Cinere
2013
IPO
SH Jambi
SH
Balikpapan
RSUS
SH
Surabaya
SH Manado
SH
Kebon Jeruk
SH MRCCC
SH Makassar
SH
Palembang
SH Lippo
Cikarang
SH Bali
SH
Simatupang
SH
Lippo Village
1996 – 2006: Learning Phase
YEAR
1996
2000
2007 – 2010: Consolidation Phase
2002
2010
2011
2011 to Date: Expansion Phase
2012+
The Landscape
Additional People in the Consuming Class
07
10
The Landscape
08
11
Demography Profile
Relatively Young Population is Expected to Sustain in the Future
2012 Indonesian Population (mm) by Age and Gender
•
Life expectancy at birth is 68 years
•
50% of the population under 30 years
•
Consistent population band for next 30 years
70-74
60-64
50-54
40-44
30-34
20-24
10-14
0-4
3.9
2.3
2.9
3.5
4.8
6.3
7.6
8.8
9.7
10.5
10.8
10.6
10.5
10.5
10.8
10.3
Female
Changing Disease Pattern Morbidity
Communicable
Diseases
28%
Injuries
9%
Other Chronic
Diseases
20%
Cancer
13%
Male
Per Capita Healthcare Expenditure
Communicable
Diseases
13%
Other Chronic
Diseases
28%
USD 109
58%
Coverage
USD 237
Doubles in 6 years
Cardiovascular
Diseases
30%
2008
Source:
Injuries
10%
2.7
1.8
2.4
3.3
4.8
6.3
7.6
8.7
9.5
10.3
10.8
10.8
10.8
10.9
11.3
10.7
Cardiovascular
Diseases
31%
Cancer
18%
2030
2012
United Nations, Department of Economic and Social Affairs, Population Division (2011), Frost & Sullivan Estimates, Ministry of Health.
2018
The Landscape
09
12
Severely Underserved Healthcare Markets
Beds
/1,000
population
3.50
Doctors
/1,000
population
3.00
OECD Average = 4.93
238,373 beds
v. Global: Shortage of 229,491 beds (1)
v. OECD: Shortage of 977,189 beds (1)
70,655 doctors
v. Global: Shortage of 267,000 doctors(1)
v. OECD: Shortage of 718,086 doctors(1)
2.95
3.00
2.84
Global Average = 3.0
OECD Average = 3.14
2.84
2.79
2.50
2.31
2.50
2.00
2.16
1.77
2.01
2.00
1.48
1.50
1.63
Lack of
Beds…
and
Qualified
Do tors…
1.50
1.00
0.97
1.02
Global Average = 1.4
1.26
1.00
0.74
0.50
0.50
0.00
0.30
Indo
India
MY
TH (2)
SG
UK
US
China
• Indonesia’s ed to population ratio way elow
global average
• Ample opportunity for private healthcare
operators to fill the supply gap
Note:
Source:
(1) Calculated based on global average beds and doctors per 1,000 population ratios.
(2) Latest available data for Thailand as of 2009.
Respective cou tries’ i istries of health, WHO, OECD.
0.00
TH (2)
0.31
Indo
India
MY
China
SG
US
UK
• Doctor to population ratio also way below
global average
• Ability to attract and retain doctors and
specialists is a critical success factor for hospitals
The Strategy & Business Model
10
13
4 Pillar Foundation
1
Emergency
2
Technology
3
Telemedicine
4
Doctors
Excellence in
Emergency Services
500-911
State-of-the-Art
Medical Equipment
and Systems
Digital Telemedicine
“Hub and Spoke”
Siloam Doctor
Partnership and
Development
Program
4 Pillar Foundation
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…
The Strategy & Business Model
11
14
Clinical Service Delivery
Siloam’s
Integrated Healthcare
Delivery Model
•
Access to
Centres of
Excellence
through hub and
spoke system
and Telemedicine
•
•
•
3
Quaternary
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
Tertiary
•
•
•
High standard and
accessible medical
care through focus
on clinical
governance and
affordable price
points
Specialist access for
primary healthcare
demand
Public-PrivatePartnership
2
•
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
Secondary
•
•
1
Primary
Research and Education
•
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
•
•
Integrated platform with UPHMS and other partnerships
Medical students training at RSUS, SHLV, and SHKJ
One-stop continuum of care at primary, secondary, tertiary and quaternary levels
The Strategy & Business Model
12
15
UPHMS (UPH Medical Sciences)
UPHMS (UPH Medical Sciences)
Centre of Excellence and
Global Reputation
•
•
Best practice Models
Remote Access Diagnosis (RAD)
and Remote Access Clinical
Management (RACM)
Telemedicine
Centres of Clinical Excellence/
Accreditation
Teaching Hospital paradigm
•
•
•
•
•
Alignment – across
teaching and service
delivery
Affiliate with agencies
such as
ACORN/NUS/SGH/UOM
Leading edge research
Clinical
•
·
Research
Education
•
•
•
•
•
•
Future workforce
Systems based curriculum
converged with PBL
Best practice replication
Clinical placement
Foundation for Innovation
Overseas training –
Singapore/Australia/USA/China
Premier Private Hospital Group
13
16
Our Hospitals (Mature and Developing)
SILOAM HOSPITALS LIPPO VILLAGE
MRCCC SILOAM SEMANGGI
TANGERANG (West of Jakarta)
SOUTH JAKARTA
322 Bed Capacity
228 GP and Specialists
455 Nurses
Centre of Excellence : Neurosience &
Heart Centre
JCIA
331 Bed Capacity
155 GP and Specialists
255 Nurses
Centre of Excellence : Cancer Centre
SILOAM HOSPITALS KEBON JERUK
WEST JAKARTA
279 Bed Capacity
213 GP and Specialists
325 Nurses
Centre of Excellence : Urology &
Orthopaedic
SILOAM HOSPITALS SURABAYA
EAST JAVA
182 Bed Capacity
80 GP and Specialists
272 Nurses
Centre of Excellence : Fertility Centre
SILOAM HOSPITALS CIKARANG
BEKASI (East of Jakarta)
110 Bed Capacity
134 GP and Specialists
158 Nurses
Centre of Excellence : Occupational Health
SILOAM HOSPITALS JAMBI
EAST SUMATERA
106 Bed Capacity
57 GP and Specialists
135 Nurses
83% Ownership
SILOAM HOSPITALS BALIKPAPAN
EAST KALIMANTAN
228 Bed Capacity
80 GP and Specialists
186 Nurses
79.6% Ownership
Premier Private Hospital Group
14
17
New Hospitals in 2012 to 2013
SILOAM GENERAL HOSPITAL (RSUS)
TANGERANG (West of Jakarta)
SILOAM HOSPITALS CINERE
DEPOK (South of Jakarta)
733 Bed Capacity
20 GP and Specialists
143 Nurses
21 Bed Capacity
11 GP and Specialists
51 Nurses
Centre of Excellence: Cardiology
SILOAM HOSPITALS MANADO
NORTH SULAWESI
231 Bed Capacity
76 GP and Specialists
188 Nurses
Centre of Excellence : Emergency
SILOAM HOSPITALS MAKASSAR
SOUTH SULAWESI
360 Bed Capacity
77 GP and Specialists
140Nurses
Centre of Excellence : Cardiology &
Emergency
SILOAM HOSPITALS PALEMBANG
SOUTH SUMATERA
347 Bed Capacity
86 GP and Specialists
168 Nurses
SILOAM HOSPITALS BALI
BALI
281 Bed Capacity
82 GP and Specialists
133 Nurses
Centre of Excellence : Emergency,
medical tourism, orthopaedics &
cardiology
SILOAM HOSPITALS TB SIMATUPANG
SOUTH JAKARTA
269 Bed Capacity
70 GP and Specialists
41 Nurses
Centre of Excellence : Emergency,
cardiology, oncology &
neuroscience
Premier Private Hospital Group
15
18
Hospitals under Construction
SILOAM HOSPITALS MEDAN
NORTH SUMATERA
SILOAM HOSPITALS SEMARANG
CENTRAL JAVA
SILOAM HOSPITALS KUPANG
SILOAM HOSPITALS SURABAYA
EXTENSION
EAST JAVA
EAST NUSA TENGGARA
SILOAM HOSPITALS BANDUNG
WEST JAVA
There are currently 19 sites under
various stages of development
Operational & Financial
Performance
For The 9 Months Ended September 30, 2013
Q3 2013 Highlights
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 6th 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
17
Operational Update Patient Visits & Admissions
OPD Visits (+26%)
ED Visits (+39%)
600,000
500,000
18
21
60,000
7%
50,000
400,000
40,000
300,000
30,000
200,000
510%
20,000
28%
345%
100,000
15%
498%
78%
10,000
-
4 Mature 3 Developing
9M2012
RSUS
4 New 2012 2 New 2013
9M2013
4 Mature 3 Developing
9M2012
IPD Admissions (+46%)
Commentary
40,000
13%
30,000
20,000
404%
28%
127%
10,000
4 Mature 3 Developing
9M2012
RSUS
4 New 2012 2 New 2013
9M2013
RSUS
4 New 2012 2 New 2013
9M2013
All hospitals have strong throughput growth at all
entry points and conversion to IPD
Strong Financial Performance
19
22
Total Revenue
EBITDA
( In Rp Bn )
( In Rp Bn )
*
1,788 1,830
221
*
201
+43%
+42%
+10%
+22%
+16%
+21%
155
1,259
+23%
1,030
+12%
890
102
737
2008
2009
2010
2011
2012 9M2013
2008
140
114
2009
2010
2011
2012
9M2013
Siloam is the clear leader and fastest growing private hospital group in Indonesia serving all segments of the population
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).
Revenue & EBITDA Analyses
20
23
Q3 Results
In IDR Bn
Description
Gross Operating Revenue
9M2013
1,829.8
9M2012
1,263.2
493.4
367.9
1,336.4
895.4
594.3
419.8
742.1
475.5
483.2
284.3
258.8
191.2
14.1%
15.1%
Service Charge
Net Operating Revenue
Material Cost
Gross Margin
Operating Expenses
EBITDAR
% to GOR
Rent
(i)
HO Expenses
EBITDA
(ii)
% to GOR
∆%
44.9%
34.1%
49.3%
41.6%
56.0%
70.0%
35.3%
24.5
11.9 105.1%
33.1
22.9
201.3
156.4
11.0%
12.4%
44.4%
28.7%
Commentary
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.
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).
(i)
Revenue & EBITDAR Growth
21
24
Q3 Results
Revenue Contribution and Growth by Classification
(Rp bn)
EBITDAR Contribution and Growth by Classification
(Rp bn)
20%
4%
12%
8%
13%
+ 16.6%
+ 50.3%
+ 28.2%
+ 91.6.0%
21%
93%
76%
+ 304.4%
61%
9M2012
4 Mature
9M2013
3 Developing
+ 52.8%
9M2012
RSUS
4 New 2012
88%
+ 452.6%
2 New 2013
4 Mature
+ 8,390.0%
9M2013
3 Developing
RSUS
4 New 2012
2 New 2013
Commentary
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%.
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).
Revenue & EBITDAR Contribution by Hospital
Q3 Results
Revenue Contribution 9M2013
(Rp bn)
SHSB, 10%
EBITDAR Contribution 9M2013
SHLC, 6%
(Rp bn)
SHSB, 15%
SHBP, 5%
SHMK, 4%
SHMN, 4%
MRCCC, 13%
MRCCC, 6%
SHPL, 3%
SHJB, 3%
SHDP, 3%
RSUS, 2%
SHCN, 2%
SHTB, 0%
SHKJ, 18%
SHLC, 7%
SHBP, 5%
SHMK, 3%
SHMN, -1%
SHPL, 1%
SHJB, 0%
SHDP, -1%
RSUS, -2%
SHCN, 0%
SHTB, -1%
SHKJ, 21%
SHLV, 27%
SHLV, 45%
Commentary
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.
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).
22
25
Balance Sheet - Assets
23
26
As of September 30, 2013 and December 31, 2012
Assets 9M2013
(Rp bn)
Inventories,
80
Assets 12M2012
Others, 170
(Rp bn)
Others, 290
A/R, 253
Cash & Cash
Equivalent,
978
Rp 2,680 Billion
Property and
Equipment,
1,198
Inventories,
75
A/R, 187
Cash & Cash
Equivalent,
169
Property and
Equipment,
865
Rp 1,586 Billion
Commentary
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.
Balance Sheet – Liabilities + Equity
24
27
As of September 30, 2013 and December 31, 2012
Liabilities + Equity 9M2013
Liabilities + Equity 12M2012
Current
Liabilities,
388
(Rp bn)
(Rp bn)
Equity, 1,593
Non Current
Liabilities,
700
Rp 2,680 Billion
Equity, 245
Current
Liabilities,
268
Non Current
Liabilities,
1,074
Rp 1,586 Billion
Commentary
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.
Drivers for Q4 2013 and Looking Ahead to 2014
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
25
Management Focus
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.
26
29
Appendices
The Landscape
2013 Vs. 2030
28
31
The Landscape
Impressive Performance over the Past Decade
29
32
The Landscape
Population and Urbanization
Large and
Growing
Population
Base…
Experiencing
Rapid
Urbanization
Resulting in
Increasing
Spending
Expenditure
…
A large population base with emerging middles class and rising affluence
30
33
Large Population Base with Rising Affluence
Indonesia today …
… and in 2030
• 16th-largest economy in the world
• 29% of households in the middle income group
• 51% of the population resides in urban areas
1.3%
0.9%
1.0%
0.6%
0.6%
1.7%
10%
1,374
16%
Global Average = 4.4%
8.1%
8%
6%
800
5%
600
4%
328
400
200
China
India
US
5.0%
Indo
66
30
5
TH
UK
MY
SG
10.0%
4.9%
7.3%
8%
4.1%
3.1%
2.6%
6.0%
6%
4.4%
4.3%
US
UK
4%
2%
1%
0%
Global Average = 10.3%
10%
2%
71
12.9% 12.8%
12%
3%
247
15.1%
14%
6.9%
7%
1,000
Note:
Source:
9.5%
9%
1,268
1,200
0
Consumer expenditure growth (2001 - 2011)
1.8%
1,600
1,400
(1)
…and increasing personal wealth
Real GDP growth (2012 – 2016F)
Population (2012)
0.5%
• 13th-largest economy in the world
• 63% of households will be in the middle income group
• 63% of the population will be residing in urban areas
…continues to experience strong
economic growth…
World’s 4th largest population…
CAGR
(2002 – 2022F)
(mm)
31
34
China
India
Indo
MY
TH
SG
UK
US
(1) Estimate as of 2017.
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.
0%
Indo
China
India
MY
TH
SG
Healthcare Reforms and Universal Insurance
Coverage to Add Further Demand
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
63%
Coverage
100%
Coverage
2012 = 148 Million
2019 Target = 263 Million
Total Healthcare Expenditure
US$27 Bn
2012 = 3.1% of GDP
US$59 Bn
2018F = 4.4% of GDP
Flow of public funding to private healthcare providers creates tremendous growth opporutnities for the private sector
Source:
Center for Health Financing and Health Security (Insurance) (PPJK, MOH), WHO, Frost & Sullivan estimates
32
35
Awards
33
36
Indonesia Sustainable Awards 2012
Industry Champion Healthcare
Excellence Asian Hospital Management
Awards (AHMA) 2011
Human Resources Development Category
Ministry of Health Hospital Management Award
2011 - The Best Accredited Hospital
Awarded to Siloam Hospitals Lippo Village
Frost and Sullivan Healthcare
Services Provider of The Year
2010 & 2012
Indonesia’s Most Admired Company
(IMAC) award as “The Best Building and
Managing Corporate Image” in Hospital
Category (2011, 2012 & 2013)
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
Ministry of Woman Empowerment Award
as The Best Mom and Child Hospital in
The Province
Awarded to Siloam Hospitals Lippo Village
Investor Relation
e-mail
: investor.relation@siloamhospitals.com
Address:
Siloam Hospital Lippo Village 5th floor – Head Office
Jalan Siloam No.6
Lippo Village
Tangerang 15811
Indonesia
Telp
: +62 21 25668000
Fax
: +62 21 5460075
Website : www.siloamhospitals.com
37
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
given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these
statements speak only as of the date hereof, and SILO undertakes no obligation to update or revise any of them, whether as a result of
new information, future events or otherwise.
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
Appendices
26
27 - 33
Lippo Group
01
4
Where We Are In Lippo Karawaci
02
5
Highly Experienced & Professional Management
03
6
Board of
Commisioners
Ketut Budi Wijaya
President
Commissioner
Theo L. Sambuaga
Commissioner
Agus Benjamin
Commissioner
dr. Gershu Paul
President Director
dr. Grace Frelita
Director, Global
Quality Development
Romeo Lledo
Director, Accounting
and Finance
Farid Harianto
Independent
Commissioner
Prof. Dr. H. Muladi, S.H Ir. Jonathan L. Parapak
Independent
Independent
Commissioner
Commissioner
Board of
Directors
*) Universitas Pelita Harapan Medical Science Group
S.Budisuharto
Prof. George Mathew
dr. Anang Prayudi
Director, Strategy and Director, Network and President, MRIN, UPH
Marketing
& UPHMS*
Development
Development Group
The Vision
04
7
5 Year Vision…
•
International
Quality
Reach
Godly
Compassion
Scale
Affordable and Accessible Healthcare
to all socio economic segments
•
•
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
Nationwide Hospitals Network & Market
Catchment
Sumatra Population :
50.6 mio
Sulawesi Population :
17.4 mio
05
8
Current
Direct Target Market
Population – 33 Million
Maluku Population :
2.6 mio
Kalimantan Population :
13.8 mio
Papua Population :
3.6 mio
Java Population :
136.6 mio
Nusa Tenggara Population :
9.2 mio
Bali Population :
3.9 mio
Operating hospitals
Greater Jakarta Population :
28 mio
Jakarta Population :
10 mio
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
19 hospitals currently in various
stages of development
11 Siloam Sriwijaya
12 Siloam Hospitals Cinere
13 Siloam Hospitals Bali
14 Siloam Hospitals Simatupang
Opening in 2H 2013-2014
6-8 hospitals
Opening in 2015 – 2017
18 -20 hospitals
The Journey
06
9
2017
SHLV – Indonesia’s First Hospital to be
Accredited and Re-accredited by JCI
(2007, 2010 and 2013)
SH Cinere
2013
IPO
SH Jambi
SH
Balikpapan
RSUS
SH
Surabaya
SH Manado
SH
Kebon Jeruk
SH MRCCC
SH Makassar
SH
Palembang
SH Lippo
Cikarang
SH Bali
SH
Simatupang
SH
Lippo Village
1996 – 2006: Learning Phase
YEAR
1996
2000
2007 – 2010: Consolidation Phase
2002
2010
2011
2011 to Date: Expansion Phase
2012+
The Landscape
Additional People in the Consuming Class
07
10
The Landscape
08
11
Demography Profile
Relatively Young Population is Expected to Sustain in the Future
2012 Indonesian Population (mm) by Age and Gender
•
Life expectancy at birth is 68 years
•
50% of the population under 30 years
•
Consistent population band for next 30 years
70-74
60-64
50-54
40-44
30-34
20-24
10-14
0-4
3.9
2.3
2.9
3.5
4.8
6.3
7.6
8.8
9.7
10.5
10.8
10.6
10.5
10.5
10.8
10.3
Female
Changing Disease Pattern Morbidity
Communicable
Diseases
28%
Injuries
9%
Other Chronic
Diseases
20%
Cancer
13%
Male
Per Capita Healthcare Expenditure
Communicable
Diseases
13%
Other Chronic
Diseases
28%
USD 109
58%
Coverage
USD 237
Doubles in 6 years
Cardiovascular
Diseases
30%
2008
Source:
Injuries
10%
2.7
1.8
2.4
3.3
4.8
6.3
7.6
8.7
9.5
10.3
10.8
10.8
10.8
10.9
11.3
10.7
Cardiovascular
Diseases
31%
Cancer
18%
2030
2012
United Nations, Department of Economic and Social Affairs, Population Division (2011), Frost & Sullivan Estimates, Ministry of Health.
2018
The Landscape
09
12
Severely Underserved Healthcare Markets
Beds
/1,000
population
3.50
Doctors
/1,000
population
3.00
OECD Average = 4.93
238,373 beds
v. Global: Shortage of 229,491 beds (1)
v. OECD: Shortage of 977,189 beds (1)
70,655 doctors
v. Global: Shortage of 267,000 doctors(1)
v. OECD: Shortage of 718,086 doctors(1)
2.95
3.00
2.84
Global Average = 3.0
OECD Average = 3.14
2.84
2.79
2.50
2.31
2.50
2.00
2.16
1.77
2.01
2.00
1.48
1.50
1.63
Lack of
Beds…
and
Qualified
Do tors…
1.50
1.00
0.97
1.02
Global Average = 1.4
1.26
1.00
0.74
0.50
0.50
0.00
0.30
Indo
India
MY
TH (2)
SG
UK
US
China
• Indonesia’s ed to population ratio way elow
global average
• Ample opportunity for private healthcare
operators to fill the supply gap
Note:
Source:
(1) Calculated based on global average beds and doctors per 1,000 population ratios.
(2) Latest available data for Thailand as of 2009.
Respective cou tries’ i istries of health, WHO, OECD.
0.00
TH (2)
0.31
Indo
India
MY
China
SG
US
UK
• Doctor to population ratio also way below
global average
• Ability to attract and retain doctors and
specialists is a critical success factor for hospitals
The Strategy & Business Model
10
13
4 Pillar Foundation
1
Emergency
2
Technology
3
Telemedicine
4
Doctors
Excellence in
Emergency Services
500-911
State-of-the-Art
Medical Equipment
and Systems
Digital Telemedicine
“Hub and Spoke”
Siloam Doctor
Partnership and
Development
Program
4 Pillar Foundation
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…
The Strategy & Business Model
11
14
Clinical Service Delivery
Siloam’s
Integrated Healthcare
Delivery Model
•
Access to
Centres of
Excellence
through hub and
spoke system
and Telemedicine
•
•
•
3
Quaternary
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
Tertiary
•
•
•
High standard and
accessible medical
care through focus
on clinical
governance and
affordable price
points
Specialist access for
primary healthcare
demand
Public-PrivatePartnership
2
•
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
Secondary
•
•
1
Primary
Research and Education
•
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
•
•
Integrated platform with UPHMS and other partnerships
Medical students training at RSUS, SHLV, and SHKJ
One-stop continuum of care at primary, secondary, tertiary and quaternary levels
The Strategy & Business Model
12
15
UPHMS (UPH Medical Sciences)
UPHMS (UPH Medical Sciences)
Centre of Excellence and
Global Reputation
•
•
Best practice Models
Remote Access Diagnosis (RAD)
and Remote Access Clinical
Management (RACM)
Telemedicine
Centres of Clinical Excellence/
Accreditation
Teaching Hospital paradigm
•
•
•
•
•
Alignment – across
teaching and service
delivery
Affiliate with agencies
such as
ACORN/NUS/SGH/UOM
Leading edge research
Clinical
•
·
Research
Education
•
•
•
•
•
•
Future workforce
Systems based curriculum
converged with PBL
Best practice replication
Clinical placement
Foundation for Innovation
Overseas training –
Singapore/Australia/USA/China
Premier Private Hospital Group
13
16
Our Hospitals (Mature and Developing)
SILOAM HOSPITALS LIPPO VILLAGE
MRCCC SILOAM SEMANGGI
TANGERANG (West of Jakarta)
SOUTH JAKARTA
322 Bed Capacity
228 GP and Specialists
455 Nurses
Centre of Excellence : Neurosience &
Heart Centre
JCIA
331 Bed Capacity
155 GP and Specialists
255 Nurses
Centre of Excellence : Cancer Centre
SILOAM HOSPITALS KEBON JERUK
WEST JAKARTA
279 Bed Capacity
213 GP and Specialists
325 Nurses
Centre of Excellence : Urology &
Orthopaedic
SILOAM HOSPITALS SURABAYA
EAST JAVA
182 Bed Capacity
80 GP and Specialists
272 Nurses
Centre of Excellence : Fertility Centre
SILOAM HOSPITALS CIKARANG
BEKASI (East of Jakarta)
110 Bed Capacity
134 GP and Specialists
158 Nurses
Centre of Excellence : Occupational Health
SILOAM HOSPITALS JAMBI
EAST SUMATERA
106 Bed Capacity
57 GP and Specialists
135 Nurses
83% Ownership
SILOAM HOSPITALS BALIKPAPAN
EAST KALIMANTAN
228 Bed Capacity
80 GP and Specialists
186 Nurses
79.6% Ownership
Premier Private Hospital Group
14
17
New Hospitals in 2012 to 2013
SILOAM GENERAL HOSPITAL (RSUS)
TANGERANG (West of Jakarta)
SILOAM HOSPITALS CINERE
DEPOK (South of Jakarta)
733 Bed Capacity
20 GP and Specialists
143 Nurses
21 Bed Capacity
11 GP and Specialists
51 Nurses
Centre of Excellence: Cardiology
SILOAM HOSPITALS MANADO
NORTH SULAWESI
231 Bed Capacity
76 GP and Specialists
188 Nurses
Centre of Excellence : Emergency
SILOAM HOSPITALS MAKASSAR
SOUTH SULAWESI
360 Bed Capacity
77 GP and Specialists
140Nurses
Centre of Excellence : Cardiology &
Emergency
SILOAM HOSPITALS PALEMBANG
SOUTH SUMATERA
347 Bed Capacity
86 GP and Specialists
168 Nurses
SILOAM HOSPITALS BALI
BALI
281 Bed Capacity
82 GP and Specialists
133 Nurses
Centre of Excellence : Emergency,
medical tourism, orthopaedics &
cardiology
SILOAM HOSPITALS TB SIMATUPANG
SOUTH JAKARTA
269 Bed Capacity
70 GP and Specialists
41 Nurses
Centre of Excellence : Emergency,
cardiology, oncology &
neuroscience
Premier Private Hospital Group
15
18
Hospitals under Construction
SILOAM HOSPITALS MEDAN
NORTH SUMATERA
SILOAM HOSPITALS SEMARANG
CENTRAL JAVA
SILOAM HOSPITALS KUPANG
SILOAM HOSPITALS SURABAYA
EXTENSION
EAST JAVA
EAST NUSA TENGGARA
SILOAM HOSPITALS BANDUNG
WEST JAVA
There are currently 19 sites under
various stages of development
Operational & Financial
Performance
For The 9 Months Ended September 30, 2013
Q3 2013 Highlights
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 6th 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
17
Operational Update Patient Visits & Admissions
OPD Visits (+26%)
ED Visits (+39%)
600,000
500,000
18
21
60,000
7%
50,000
400,000
40,000
300,000
30,000
200,000
510%
20,000
28%
345%
100,000
15%
498%
78%
10,000
-
4 Mature 3 Developing
9M2012
RSUS
4 New 2012 2 New 2013
9M2013
4 Mature 3 Developing
9M2012
IPD Admissions (+46%)
Commentary
40,000
13%
30,000
20,000
404%
28%
127%
10,000
4 Mature 3 Developing
9M2012
RSUS
4 New 2012 2 New 2013
9M2013
RSUS
4 New 2012 2 New 2013
9M2013
All hospitals have strong throughput growth at all
entry points and conversion to IPD
Strong Financial Performance
19
22
Total Revenue
EBITDA
( In Rp Bn )
( In Rp Bn )
*
1,788 1,830
221
*
201
+43%
+42%
+10%
+22%
+16%
+21%
155
1,259
+23%
1,030
+12%
890
102
737
2008
2009
2010
2011
2012 9M2013
2008
140
114
2009
2010
2011
2012
9M2013
Siloam is the clear leader and fastest growing private hospital group in Indonesia serving all segments of the population
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).
Revenue & EBITDA Analyses
20
23
Q3 Results
In IDR Bn
Description
Gross Operating Revenue
9M2013
1,829.8
9M2012
1,263.2
493.4
367.9
1,336.4
895.4
594.3
419.8
742.1
475.5
483.2
284.3
258.8
191.2
14.1%
15.1%
Service Charge
Net Operating Revenue
Material Cost
Gross Margin
Operating Expenses
EBITDAR
% to GOR
Rent
(i)
HO Expenses
EBITDA
(ii)
% to GOR
∆%
44.9%
34.1%
49.3%
41.6%
56.0%
70.0%
35.3%
24.5
11.9 105.1%
33.1
22.9
201.3
156.4
11.0%
12.4%
44.4%
28.7%
Commentary
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.
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).
(i)
Revenue & EBITDAR Growth
21
24
Q3 Results
Revenue Contribution and Growth by Classification
(Rp bn)
EBITDAR Contribution and Growth by Classification
(Rp bn)
20%
4%
12%
8%
13%
+ 16.6%
+ 50.3%
+ 28.2%
+ 91.6.0%
21%
93%
76%
+ 304.4%
61%
9M2012
4 Mature
9M2013
3 Developing
+ 52.8%
9M2012
RSUS
4 New 2012
88%
+ 452.6%
2 New 2013
4 Mature
+ 8,390.0%
9M2013
3 Developing
RSUS
4 New 2012
2 New 2013
Commentary
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%.
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).
Revenue & EBITDAR Contribution by Hospital
Q3 Results
Revenue Contribution 9M2013
(Rp bn)
SHSB, 10%
EBITDAR Contribution 9M2013
SHLC, 6%
(Rp bn)
SHSB, 15%
SHBP, 5%
SHMK, 4%
SHMN, 4%
MRCCC, 13%
MRCCC, 6%
SHPL, 3%
SHJB, 3%
SHDP, 3%
RSUS, 2%
SHCN, 2%
SHTB, 0%
SHKJ, 18%
SHLC, 7%
SHBP, 5%
SHMK, 3%
SHMN, -1%
SHPL, 1%
SHJB, 0%
SHDP, -1%
RSUS, -2%
SHCN, 0%
SHTB, -1%
SHKJ, 21%
SHLV, 27%
SHLV, 45%
Commentary
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.
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).
22
25
Balance Sheet - Assets
23
26
As of September 30, 2013 and December 31, 2012
Assets 9M2013
(Rp bn)
Inventories,
80
Assets 12M2012
Others, 170
(Rp bn)
Others, 290
A/R, 253
Cash & Cash
Equivalent,
978
Rp 2,680 Billion
Property and
Equipment,
1,198
Inventories,
75
A/R, 187
Cash & Cash
Equivalent,
169
Property and
Equipment,
865
Rp 1,586 Billion
Commentary
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.
Balance Sheet – Liabilities + Equity
24
27
As of September 30, 2013 and December 31, 2012
Liabilities + Equity 9M2013
Liabilities + Equity 12M2012
Current
Liabilities,
388
(Rp bn)
(Rp bn)
Equity, 1,593
Non Current
Liabilities,
700
Rp 2,680 Billion
Equity, 245
Current
Liabilities,
268
Non Current
Liabilities,
1,074
Rp 1,586 Billion
Commentary
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.
Drivers for Q4 2013 and Looking Ahead to 2014
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
25
Management Focus
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.
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29
Appendices
The Landscape
2013 Vs. 2030
28
31
The Landscape
Impressive Performance over the Past Decade
29
32
The Landscape
Population and Urbanization
Large and
Growing
Population
Base…
Experiencing
Rapid
Urbanization
Resulting in
Increasing
Spending
Expenditure
…
A large population base with emerging middles class and rising affluence
30
33
Large Population Base with Rising Affluence
Indonesia today …
… and in 2030
• 16th-largest economy in the world
• 29% of households in the middle income group
• 51% of the population resides in urban areas
1.3%
0.9%
1.0%
0.6%
0.6%
1.7%
10%
1,374
16%
Global Average = 4.4%
8.1%
8%
6%
800
5%
600
4%
328
400
200
China
India
US
5.0%
Indo
66
30
5
TH
UK
MY
SG
10.0%
4.9%
7.3%
8%
4.1%
3.1%
2.6%
6.0%
6%
4.4%
4.3%
US
UK
4%
2%
1%
0%
Global Average = 10.3%
10%
2%
71
12.9% 12.8%
12%
3%
247
15.1%
14%
6.9%
7%
1,000
Note:
Source:
9.5%
9%
1,268
1,200
0
Consumer expenditure growth (2001 - 2011)
1.8%
1,600
1,400
(1)
…and increasing personal wealth
Real GDP growth (2012 – 2016F)
Population (2012)
0.5%
• 13th-largest economy in the world
• 63% of households will be in the middle income group
• 63% of the population will be residing in urban areas
…continues to experience strong
economic growth…
World’s 4th largest population…
CAGR
(2002 – 2022F)
(mm)
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34
China
India
Indo
MY
TH
SG
UK
US
(1) Estimate as of 2017.
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.
0%
Indo
China
India
MY
TH
SG
Healthcare Reforms and Universal Insurance
Coverage to Add Further Demand
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
63%
Coverage
100%
Coverage
2012 = 148 Million
2019 Target = 263 Million
Total Healthcare Expenditure
US$27 Bn
2012 = 3.1% of GDP
US$59 Bn
2018F = 4.4% of GDP
Flow of public funding to private healthcare providers creates tremendous growth opporutnities for the private sector
Source:
Center for Health Financing and Health Security (Insurance) (PPJK, MOH), WHO, Frost & Sullivan estimates
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35
Awards
33
36
Indonesia Sustainable Awards 2012
Industry Champion Healthcare
Excellence Asian Hospital Management
Awards (AHMA) 2011
Human Resources Development Category
Ministry of Health Hospital Management Award
2011 - The Best Accredited Hospital
Awarded to Siloam Hospitals Lippo Village
Frost and Sullivan Healthcare
Services Provider of The Year
2010 & 2012
Indonesia’s Most Admired Company
(IMAC) award as “The Best Building and
Managing Corporate Image” in Hospital
Category (2011, 2012 & 2013)
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
Ministry of Woman Empowerment Award
as The Best Mom and Child Hospital in
The Province
Awarded to Siloam Hospitals Lippo Village
Investor Relation
: investor.relation@siloamhospitals.com
Address:
Siloam Hospital Lippo Village 5th floor – Head Office
Jalan Siloam No.6
Lippo Village
Tangerang 15811
Indonesia
Telp
: +62 21 25668000
Fax
: +62 21 5460075
Website : www.siloamhospitals.com
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