frost and sullivan -...

2015 Indonesia Healthcare Services Provider of The Year Frost and Sullivan

FY 2015 Results

2

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 disclaims 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.

FY 2015 Results

Table of Contents Where We Are In Lippo Karawaci 04

Highly Experienced & Professional Management 05

The Vision 06

The Journey 07

The Operations 08

A Day At Siloam 09

The Strategy & Business Model 10 – 13

Premier Private Hospital Group 14 – 20

Hospitals Under Development 21 – 28

Financial & Operational Performance 29 – 37

4

Where We Are In Lippo Karawaci

FY 2015 Results

As of 31 Dec 2015 No. of Outstanding Shares : 23,077,689,619 Code : LPKR.JK ; LPKR IJ

LIPPO RELATED COMPANIES

26.91%

DEVELOPMENT REVENUE RECURRING REVENUE

HOSPITALS COMMERCIAL ASSET

MANAGEMENT

• Siloam Hospitals 70.8%

• Retail Malls • Aryaduta

Hotels

• REIT, Mall & Hotel Management

• Town

Management Services, Leisure and Restaurants

PUBLIC

73.09%

TOWNSHIPS INDUSTRIAL AND COMMERCIAL PROPERTIES

OFFICE PROJECTS

LARGE SCALE INTEGRATED DVPT

As of 31 Dec 2015 No. of Outstanding Shares : 337,300,000 Code : SILO

5

Highly Experienced & Professional Management

FY 2015 Results

Board of Directors

Romeo Lledo President Director,

Independent Director

dr. Andry Director

dr. Anang Prayudi Director

Prof. George Mathew Director

dr. Grace Frelita

Director

Kailas N. Raina Director

Board of Commissioners

Ketut Budi Wijaya President

Commissioner

Theo L. Sambuaga Commissioner

Lambock V. Nahattands Independent

Commissioner

Ir. Jonathan L. Parapak

Independent Commissioner

Farid Harianto Independent

Commissioner

dr. Niel Nielson Independent

Commissioner

Richard Setiadi Director

Jenny Kuistono Commissioner

dr. Gershu Paul Group Executive

Chairman

6

The Vision

FY 2015 Results

Reach

Scale

International Quality

Affordable and Accessible Healthcare to all socio economic segments

Godly Compassion

By 2017.. • Beds 4,800 to 10,000

• Patients per annum 2 million to 15 million

• Hospitals 20 to over 50 hospitals 14 to over 25 cities

7

The Journey

FY 2015 Results

1996 – 2006: Learning Phase 2007 – 2010: Consolidation Phase 2011 to Date: Expansion Phase

1996

SH Lippo Village

2002 2011 2012 2013 2014 2015

SH Lippo Cikarang

SH Surabaya

SH Kebon Jeruk

SH Balikpapan

SH Jambi

SH MRCCC

RSUS

SH Manado

SH Makassar

SH Palembang

SH Cinere

SH Bali

SH TB Simatupang

BIMC Kuta

BIMC Nusa Dua

SH Medan

Asri

SHLV – Indonesia’s First Hospital to be Accredited and Re-accredited by JCI (2007, 2010 and 2014)

2013 – The Company successfully completed IPO

BIMC Nusa Dua – Indonesia’s First Hospital to be Accredited by ACHS Australia (2014)

SH Kupang

SH Purwakarta

Total operational

hospital

8

The Operations

FY 2015 Results

Unrivalled network across Indonesia

JCI

Sumatra Population : 50.6 mio

Kalimantan Population : 13.8 mio

Java Population : 136.6 mio

Sulawesi Population : 17.4 mio

Papua Population : 3.6 mio

Bali Population : 3.9 mio

Nusa Tenggara Population : 9.2 mio

Maluku Population : 2.6 mio

Jakarta Population : 10 mio

Greater Jakarta Population : 28 mio

ACHSI

Operational Hospitals (20)

Completed Hospital Awaiting for Operational License (2)*

Future Developments (44)

* Labuan Bajo soft opening on 25 January 2016

9

A Day At Siloam

FY 2015 Results

400 Inpatient Admissions

5,299 Outpatient Visits 11 Cardiac

Procedures

146 Dialysis Procedures

6 Neuro Surgeries 2 Cardiac

Surgeries

22 Deliveries

11,241 Laboratory Tests

570 Emergency Visits

103 Major Surgeries

The Strategy & Business Model

4 Pillar Foundation 11

Clinical Service Delivery 12

UPH Medical Sciences (UPHMS) 13

11

4 Pillar Foundation

FY 2015 Results

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…

1 Emergency

Excellence in Emergency Services

1-500-911

2 Technology

3 Telemedicine

4 Doctors

State-of-the-Art Medical Equipment and Systems

Digital Telemedicine “Hub and Spoke”

Siloam Doctor Partnership and

Development Program

4 Pillar Foundation

12

Clinical Service Delivery

FY 2015 Results

• 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

• Specialist access for primary healthcare demand

• Public-Private-Partnership

• High standard and accessible medical care through focus on clinical governance and affordable price points

• Access to Centres of Excellence through hub and spoke system and Tele-medicine

3

2

1

Siloam’s Integrated Healthcare Delivery Model

Primary

Secondary

Tertiary

Research and Education • Integrated platform with UPHMS and other partnerships

• Medical students training at RSUS, SHLV, and SHKJ

• Integrated Centers of Excellence: Neuroscience, Cardiology, Cancer, Orthopedic, Urology, Fertility • Hub and Spoke strategy and extensive coverage of specialized 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

• 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

One-stop continuum of care at primary, secondary, tertiary and quaternary levels

Quaternary

13

UPH Medical Sciences (UPHMS)

FY 2015 Results

Centre of Excellence and Global Reputation

• Alignment – across teaching and service delivery

• Affiliate with agencies such as ACORN/NUS/SGH/UOM

• Leading edge research

• Best practice Models • Remote Access Diagnosis (RAD)

and Remote Access Clinical Management (RACM)

• Telemedicine • Centres of Clinical Excellence/

Accreditation • Teaching Hospital paradigm

• Future workforce • Systems based curriculum

converged with PBL • Best practice replication • Clinical placement • Foundation for Innovation • Overseas training –

Singapore/Australia/USA/China

Bringing Together Clinical, Research & Education

·

Education Research

Clinical

Premier Private Hospital Group

Mature Hospitals 15

Developing Hospitals 16

New Hospitals 17

Distinct Market Segment Hospitals 18

Completed Hospital In Yogyakarta 19

Siloam Clinic 20

15

Mature Hospitals

FY 2015 Results

BEKASI (East of Jakarta) SILOAM HOSPITALS CIKARANG

114 Bed Capacity 108 Operational Beds 95 GP and Specialists 166 Nurses Centre of Excellence : Occupational Health &

Emergency

79.61% Ownership

EAST KALIMANTAN

232 Bed Capacity 165 Operational Bed 105 GP and Specialists 155 Nurses Centre of Excellence : Orthopedics & Emergency

SILOAM HOSPITALS BALIKPAPAN

SOUTH JAKARTA

MRCCC SILOAM SEMANGGI

334 Bed Capacity 122 Operational Beds 168 GP and Specialists 229 Nurses Centre of Excellence : Cancer, Liver &

Emergency

TANGERANG (West of Jakarta) SILOAM HOSPITALS LIPPO VILLAGE

JCIA 308 Bed Capacity 274 Operational Beds 233 GP and Specialists 435 Nurses Centre of Excellence : Cardiology, Neuroscience,

Orthopedics & Emergency

WEST JAKARTA SILOAM HOSPITALS KEBON JERUK

285 Bed Capacity 217 Operational Beds 217 GP and Specialists 343 Nurses Centre of Excellence : Urology, Orthopaedic, Cardiology & Emergency

EAST JAVA SILOAM HOSPITALS SURABAYA

162 Bed Capacity 160 Operational Beds 141 GP and Specialists 250 Nurses Centre of Excellence : Fertility Treatment, Cardiology & Emergency

79.84% Ownership

EAST SUMATERA

SILOAM HOSPITALS JAMBI

100 Bed Capacity 90 Operational Beds 70 GP and Specialists 129 Nurses Centre of Excellence : Emergency

83.0% Ownership

16

NORTH SULAWESI SILOAM HOSPITALS MANADO


Developing Hospitals

FY 2015 Results

SOUTH SULAWESI SILOAM HOSPITALS MAKASSAR

360 Bed Capacity 215 Operational Beds 109 GP and Specialists 211 Nurses Centre of Excellence : Cardiology,

Endocrinology & Emergency

SOUTH SUMATERA SILOAM HOSPITALS PALEMBANG

357 Bed Capacity 135 Operational Beds 136 GP and Specialists 184 Nurses Centre of Excellence : Gastroenterology &

Emergency 70.00% Ownership

BALI SILOAM HOSPITALS BALI

281 Bed Capacity 127 Operational Beds 120 GP and Specialists 182 Nurses Centre of Excellence : Treatment for tourists,

Orthopedics, Cardiology & Emergency

SOUTH JAKARTA SILOAM HOSPITALS TB SIMATUPANG

269 Bed Capacity 80 Operational Beds 138 GP and Specialists 132 Nurses Centre of Excellence : Cardiology, Oncology,

Neuroscience & Emergency

17

New Hospitals

FY 2015 Results

WEST JAVA SILOAM HOSPITALS PURWAKARTA


EAST NUSA TENGGARA SILOAM HOSPITALS KUPANG


NORTH SUMATERA SILOAM HOSPITALS MEDAN

356 Bed Capacity 80 Operational Beds 86 GP and Specialists 86 Nurses Centre of Excellence : Emergency & Trauma

There are currently 44 sites under various stages of development

18

TANGERANG (West of Jakarta) SILOAM GENERAL HOSPITAL (RSUS)


Distinct Market Segment Hospitals

FY 2015 Results

SOUTH JAKARTA SILOAM HOSPITALS ASRI

40 Bed Capacity 40 Operational Beds 104 GP and Specialists 84 Nurses Centre of Excellence : Urology

DEPOK (South of Jakarta) SILOAM HOSPITALS CINERE

50 Bed Capacity 37 Operational Beds 26 GP and Specialists 37 Nurses Centre of Excellence: Cardiology

80.0% Ownership

BALI BIMC KUTA

19 Bed Capacity 18 Operational Beds 51 GP and Specialists 63 Nurses Centre of Excellence : Treatment for tourists &

Emergency

BALI BIMC NUSA DUA

39 Bed Capacity 20 Operational Beds 57 GP and Specialists 66 Nurses Centre of Excellence : Cosmetic Surgery &

Emergency

19

Completed Hospital In Yogyakarta (in April 2015 awaiting license to operate)

FY 2015 Results

FAÇADE MAIN LOBBY

OUT PATIENT DEPARTMENT FRONT OFFICE

20

Siloam Clinic

FY 2015 Results

CYBER PARK KARAWACI

There are other 15 Siloam Clinics in operation

MERTANADI BALI

FAÇADE GP’s CONSULTATION ROOM RECEPTION

FAÇADE GP’s CONSULTATION ROOM RECEPTION

Hospitals Under Development

For Completion In 2016 22 – 24

For Completion In 2017 25 – 26

Siloam Medika Under Development 27

Capacity Expansion of Existing Hospitals 28

22

BAU-BAU

BANGKA BELITUNG

For Completion In 2016

FY 2015 Results

BOGOR

9M2015

9M2015

9M2015

Current

Current

Current

23

LABUAN BAJO*

JEMBER


FY 2015 Results

LUBUK LINGGAU

9M2015

9M2015

9M2015

Current

Current

Current

* Labuan Bajo soft opening on 25 January 2016

24

SORONG


FY 2015 Results

9M2015 Current

25

BANDUNG

AMBON


FY 2015 Results

CEMPAKA PUTIH

9M2015

9M2015

9M2015

Current

Current

Current

26

SEMARANG SRONDOL

PANAKUKANG MAKASSAR


FY 2015 Results

9M2015

9M2015

Current

Current

Current

27

Siloam Medika Under Development (completion in 2016)

FY 2015 Results

BLU PLAZA BEKASI

KUNINGAN TOWER BANJARMASIN PLUIT VILLAGE

LIPPO MALL BATU

NINE RESIDENCE

SURABAYA CITO

SEMARANG

GAJAH MADA PLAZA

BEKASI GRAND MALL GUNUNG SAHARI

KALIMALANG

SAMARINDA

28

Capacity Expansion of Existing Hospitals

FY 2015 Results

SILOAM HOSPITALS LIPPO VILLAGE 5th Floor OPD Extension – Operational in December 2015

MRCCC SILOAM SEMANGGI 120 New Beds – Completion Q1 2016

9M2015 Current

9M2015 Current

9M2015 Current

Current 9M2015

9M2015 Current 9M2015 Current

Strong Financial Performance 30

Revenue & EBITDA Details 31

Balance Sheets 32

Revenue & EBITDA Contribution 33

Average Revenue Per Patient 34

Patient Visits & Admissions 35 – 36

Service Excellence Initiatives 37

Financial & Operational Performance For The Nine Months Ended September 30, 2015

30

Strong Financial Performance

FY 2015 Results

Note: 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).

Siloam is the clear leader and fastest growing private hospital group in Indonesia serving all segments of the population

1,259

1,788

2,504

3,341

4,144

2011 2012 2013 2014 2015

155

221

298

466

574

2011 2012 2013 2014 2015

+42%

+43%

+40%

+35%

FY Revenue FY EBITDA

12%

12%

14%

12%

+33%

14%

+56%

In IDR Bn In IDR Bn +24%

+23%

31

Revenue & EBITDA Details

FY 2015 Results

In IDR Bn FY

∆% 2014 2015

GOR 3,341 4,144 24%

Service Cost 869 1,102 27%

NOR 2,472 3,042 23%

Material Cost 1,030 1,219 18%

Gross Margin 1,443 1,823 26%

Operating Expenses 916 1,152 26%

EBITDAR 526 671 27%

% to GOR 15.8% 16.2%

% to NOR 21.3% 22.0%

Rental (i) 61 97 59%

EBITDA (ii) 466 574 23%

% to GOR 13.9% 13.8%

% to NOR 18.8% 18.9%

NPAT 60 (iii) 62 3%

% to GOR 1.8% 1.5%

% to NOR 2.4% 2.0% Notes: (i) Represents rental expenses for the land and buildings, Siloam is leasing from FREIT, PT Lippo Karawaci Tbk and other parties. PT Lippo Karawaci started charging rent for the land and buildings of 9 hospitals on

May 1, 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). (iii) For 2014, this amount was restated from 60 IDR Bn to 69 IDR Bn in accompliance with the Indonesian GAAP, PSAK No.24 (revised 2013).

32

Balance Sheets

FY 2015 Results

In IDR Bn FY2014 FY2015 ∆%

Assets

Cash & Equivalent 280 160 -43%

Other Current Assets 561 796 42%

Property and Equipment 1,589 1,553 -2%

Other Assets 416 477 15%

Total Assets 2,846 2,986 5%

Liabilities & Equity

Liabilities 1,186 1,246 5%

Shareholders' Equity 1,660 1,740 5%

Total Liabilities & Equity 2,846 2,986 5%

D/E Ratio 0.71 0.72 0%

33

Revenue EBITDA

Revenue & EBITDA Contribution

FY 2015 Results

22% 18%

14% 12%

24% 22%

8%

7%

5%

5%

11% 14%

3% 4% 5%

12% 12%

2014 2015

Mature ≥250 Beds Mature 200-249

Mature 120-199 Beds Mature <120 Beds

Developing ≥200 Beds Developing 120-199 Beds

Developing <120 Beds New ≥100 Beds

New <100 Beds Distinct Market Segment

Commentary

31% 24%

12%

11%

22%

20%

4%

4%

6%

10%

17%

3% 4%

5% 7%

12% 12%

2014 2015

Mature ≥250 Beds Mature 200-249

Mature 120-199 Beds Mature <120 Beds

Developing ≥200 Beds Developing 120-199 Beds

Developing <120 Beds New ≥100 Beds

New <100 Beds Distinct Market Segment

Revenue growth is driven by the ramp-up of new hospitals opened in 2011, 2012, 2013 and 2014. This trend will continue in the coming years. EBITDA growth is driven by the contribution of new hospitals opened in 2011, 2012, 2013 and 2014. as these hospitals are ramping up their

operations to the level of “Mature hospital category”.

Note: 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).

34

21.4 21.2 19.3

10.4

12.6 12.2

-

9.6

21.8 22.4 20.9

11.2

14.8 14.3

19.3

11.6

23.9 23.7 21.4

12.0 14.3 15.3

24.1

6.9

15.7

24.1

26.1

21.7

12.5 13.8

17.9

26.0

7.7

13.2

16.8

-

5.0

10.0

15.0

20.0

25.0

30.0

≥250 Beds 200-249 Beds 120-199 Beds <120 Beds ≥200 Beds 120-199 Beds <120 Beds ≥100 Beds <100 Beds DistinctMarket

Segment2012 2013 2014 2015

Average Revenue Per Patient

FY 2015 Results

Blended IPD Average Revenue Per Patient (IDR 17.7 Mn)

Blended OPD Average Revenue Per Patient (IDR 0.8 Mn)

0.8 0.8 0.8

0.5 0.5 0.5

-

0.2

0.9 0.9 0.9

0.5

0.7 0.7 0.8

0.3

1.0 0.9

1.0

0.6 0.7

0.8

1.2

0.3

0.7

1.2

0.9 0.9

0.6 0.7

0.9

1.3

0.3

0.8

0.6

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4


Segment

2012 2013 2014 2015

IDR Mn

IDR Mn

Mature Developing New


35

251,169

193,347

278,552

155,205

54,659

122,513

28,008 33,829 -

137,160

248,553

200,029

308,557

167,790

85,933

174,685

40,329

113,710

6,401

227,576

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000


Segment2014 2015

-1%

3%

43%

236%

57%

66%

44%

8%

Patient Visits & Admissions

FY 2015 Results

OPD Visits (+25%) No of OPD Visits

22,753 22,841

37,605

18,462

9,658

30,148

5,288 8,617

-

15,733 21,175 21,088

45,899

16,926 11,020

38,567

7,031

24,020

1,531

20,520

-

10,000

20,000

30,000

40,000

50,000


Segment2014 2015

No of ED Visits

-7%

22%

-8%

14%

28%

179%

ED Visits (+21%)

30%

33%



-8

11%

36

Patient Visits & Admissions

FY 2015 Results

IPD Admissions (+27%)

Average Length Of Stay (3.9)

17,681

11,413

22,156

11,558 7,798

15,958

2,863

8,176

-

17,464 17,663

11,356

25,117

12,077 11,628

21,796

3,475

20,420

1,029

21,192

-

5,000

10,000

15,000

20,000

25,000

30,000


Segment2014 2015

No of IPD Admissions

0%

13%

4% 49%

37% 150%

4.1 4.7

4.2

3.4

4.3 4.2 4.4

3.1

-

4.1 3.9 4.4

3.9 3.5

4.2 4.7

3.9 3.3

4.3

3.6

-

2.0

4.0

6.0


Segment

2014 2015

ALOS

0% 21%

21%



37

Service Excellence Initiatives

FY 2015 Results

GST

GEMS

Communication Skills

Grooming

Delighting Customer

Service Recovery

Customer Journey Mapping

Notes: (i) GST : Greet, Smile and Thank (ii) GEMS : Go the extra miles

frost and sullivan -...

Documents