praram 9 hospitalpr9.listedcompany.com/misc/presentation/20200525... · 5/25/2020 · in 1q20, pr9...
TRANSCRIPT
PRARAM 9 HOSPITAL Analyst Meeting : 1Q20 Results
25 May 2020
VISION &
MILESTONES
Professional Healthcare Communityใส่ใจสขุภาพ ดูแลดว้ยมอือาชพี
P.2
Operational Statistics & Financial Performance
PR9 Strategies
2
3
Business Update & Project Update4
Overview & PR9’s Strengths1
Agenda
P.3
Operational Statistics & Financial Performance
PR9 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 Disease and 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
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.10
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
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.11
Operational Statistics & Financial Performance
PR9 Strategies
2
3
Business Update & Project Update4
Overview & PR9’s Strengths1
Agenda
P.12
86.137.3
0.0100.0200.0300.0400.0
1Q2019 1Q2020
143.484.0
0.0100.0200.0300.0400.0
1Q2019 1Q2020
695.2 658.9
0.0
500.0
1Q2019 1Q2020
Financial Summary
▪ Due to the Coronavirus disease 2019 situation, PR9 reported total medical revenue in 1Q20 of Baht 658.9 million, a decrease of 5.2% from 1Q19. As a results of a slightly decrease of OPD revenue, while IPD revenue in decreased at 10.7% yoy.
▪ Medical revenue from Thai patient dropped 5.9% yoy, while international patients slightly dropped 1.6% yoy. Thanks to the growth from Chinese patient group that help the international patient segment received less impact.
▪ While insurance and corporate contract payment methods dropped from the disease control measures, while the insurance customers grew up from the tendency of more health insurance usage.
Med
icalR
even
ueEB
ITDA
Net P
rofit
▪ PR9 reported EBITDA in 1Q20 of Baht 84.0 million, a decrease of 41.4% from Baht 143.4 million in 1Q19, while the EBITDA margin were 12.6% in 1Q20 and 20.4% in 1Q19.
▪ In 1Q20, PR9 reported profits for the period Baht 37.3 million, a decrease of 56.6% from Baht 86.1 million in 1Q19, representing the net profit margin for the period of 12.2% and 5.6% respectively.
20.4%12.6%
P.13
12.2%5.6%
Total Revenue
P.14
Total Revenue
374.3 376.0 419.1 414.8 372.2
320.9 294.7324.4 324.3
286.7
9.1 9.19.7 13.3
7.2
1Q19 2Q19 3Q19 4Q19 1Q20
OPD Revenue IPD Revenue Other revenueUnit: THB mm
(44%)
(56%)
(46%)
(54%)(44%)(56%)
704.3 679.8752.4
666.1
(44%)
(56%)
-5.4% YOY
753.2
(44%)
(56%)
Total Revenue -5.4%Medical Revenue -5.2%
OPD -0.6%IPD -10.7%
589.5 554.8
105.8 104.1
1Q19 1Q20
Thai Inter
-5.9%
-1.6%
Revenue Breakdown : 1Q19 & 1Q20
Unit: THB mmTotal Revenue
527.6 489.7
137.5 141.4
30.1 27.8
1Q19 1Q20
Self Pay Insurance Contract Comp.
-7.8%
-7.2%
+2.9%
4%20%76%
4%22%74%
374.3 372.2
320.9 286.7
9.1 7.2
1Q19 1Q20OPD IPD Other rev.
46%54%
By Payor Revenue
By Nationality Revenue
44%56%
84%
15%85%
704.3 666.1
P.15
16%
695.2 658.9
695.2 658.9
105 106
117116
102
1Q19 2Q19 3Q19 4Q19 1Q20
Key Operational Volume
Unit: ’000 visits
OPD Visits
OPD
-3.2% (YOY)
IPD Average Daily Census (ADC)
10691
109 10789
1Q19 2Q19 3Q19 4Q19 1Q20
IPD
-16.2% (YOY)
P.16
Occupancy Rate : Normal Ward, ICU-CCU
P.17
125142 142 142 142 142 142
24 24 24 24 24 24 24
74.3%55.9% 70.0%
61.5% 61.4%52.4%
64.6% 62.5%
51.2%
73.6%68.3%
74.2% 74.3% 77.8%72.7% 73.4% 74.7%
67.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
0
50
100
150
200
250
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
Normal Ward ICU-CCU Normal Ward Occupancy Rate ICU-CCU Occupancy Rate
125142 142 142 142 142 142 142 142
24 24 24 24 24 24 24 24 24
Significant Change in Accounting Policy
P.18
Adoption of the financial reporting standards related to financial instruments :A set of TFRSs related to financial instruments consists of 5 accounting standards and interpretations, as follows:▪ TFRS 7 Financial Instruments : Disclosures▪ TFRS 9 Financial Instruments▪ TAS 32 Financial Instruments : Presentation▪ TFRIC 16 Hedges of a Net Investment in a Foreign Operation▪ TFRIC 19 Extinguishing Financial Liabilities with Equity
Instruments
The impacts of TFRS related to financial instruments
The impacts of TFRS 16
Current assets : -3.404 MB (the allowance for expected credit losses)
Non-current assets : +0.681 MB (deferred tax assets)
Other components of : -7.932 MB (Investment of Debt securities as financial Shareholder’s equity assets at fair value through profit)
Retained earnings : +5.209 MB (Net-value of classification of investment in debt securities as financial assets)Adoption of TFRS 16 Leases : TFRS 16 supersedes TAS 17
Leases together with related InterpretationsThe Company adopted these financial reporting standards using the modified retrospective method of initial adoption of which the cumulative effect is recognized as an adjustment to the retained as at 1 January 2020, and the comparative information was not related.
The cumulative effect of initially applying these standards is recognized as an adjustment to retained earnings as at 1 January 2020. Therefore, the comparative information was not restated.
Non-current assets : +7.963 MB (Right-of-use assets from land and vehicles leases)
Current liabilities : +3.341 MB (Current portion of lease liabilities)
Non-current liabilities : +4.622 MB (Lease liabilities, net of current portion)
Remark: For more details, please see notes to financial statements No.1.4 and No.2
143.4 83.9 150.6 133.3 84.0
20.4%12.3%
20.0% 17.7%12.6%
1Q2019 2Q2019 3Q2019 4Q2019 1Q2020EBITDA EBITDA Margin
86.1 35.7 88.8 73.9 37.3
12.2%
5.2%
11.8% 9.8%5.6%
1Q2019 2Q2019 3Q2019 4Q2019 1Q2020Net Profit Net Profit Margin
224.8 181.5 237.6 232.3 171.0
32.3% 27.1% 32.0% 31.4% 26.0%
1Q2019 2Q2019 3Q2019 4Q2019 1Q2020Gross Profit Gross Profit Margin
Profitability : Quarterly
Unit: THB mm
Gro
ss
Pro
fit
EB
ITD
AN
et
Pro
fit
Unit: THB mm
Unit: THB mm
16.4%
57.88.5%
111.5
197.029.4%
P.19
Balance Sheets
P.20
211 167
2,862 3,173
1,643 1,449
Dec 2019 Mar 2020Other LT Asset PPE Current Asset
Total Assets
4,039 4,074
155 162
523588
Dec 2019 Mar 2020Equity Non-Current Liabilities Current Liabilities
Total Liabilities & Shareholders' Equity
4,717 4,7174,824 4,824
+311 / (+10.8%)
-45 / (-21.1%)
-195 / (-11.8%) +65 / (+12.5%)
+35 / (+0.9%)
+8 / (+4.9%)
Balance Sheets
Solid Balance Sheets
2,095
3,873 4,039 4,074762
551 678 743
2017 2018 2019 1Q20
Equity IBD Non-IBD
Unit: THB mm
2,857
4,4244,717
0.36
0.14 0.17 0.18
2017 2018 2019 1Q20
D/E Ratio
D/E Ratio
P.21
4,824
7
Operational Statistics & Financial Performance
PR9 Strategies
2
3
Business Update & Project Update4
Overview & PR9’s Strengths1
Agenda
P.22
PRARAM 9 HOSPITAL : Corporate Strategy
Scenario 1: The first wave of COVID-19 in
spring 2020 is followed by a series of repetitive smaller waves that occur through the summer and then consistently over a 1- to 2-year period, gradually diminishing sometime in 2021. The occurrence of these waves may vary geographically and may depend on what mitigation measures are in place and how they are eased. Depending on the height of the wave peaks, this scenario could require periodic reinstitution andsubsequent relaxation of mitigation measures over
thenext 1 to 2 years.
Scenario 2: The first wave of COVID-19 in
spring2020 is followed by a larger wave in the fall or winter of 2020 and one or more smaller subsequent wavesin 2021. This pattern will require the reinstitutionof mitigation measures in the fall in an attempt todrive down spread of infection and prevent healthcare systems from being overwhelmed. This pattern is similar to what was seen with the 1918-19 pandemic (CDC 2018). During that pandemic, a small wave began in March 1918 and subsided during the summer months. A much larger peak then occurred in the fall of 1918. A third peak occurred during the winter and spring of 1919; that wave subsided in the summer of 1919, signaling the end of the pandemic. The 1957-58 pandemic followed a similar pattern, with a smaller spring wave followed by a much larger fall wave (Saunders-Hastings 2016). Successive smaller waves continued to occur for several years (Miller 2009). The 2009-10 pandemic also followed a pattern of a spring wave followed by a larger fall wave (Saunders-Hastings 2016).Figure 1
Scenario 3: The first wave of COVID-19 in
spring 2020 is followed by a “slow burn” of ongoing transmission and case occurrence, but without a clear wave pattern. Again, this pattern may vary somewhat geographically and may be influenced by the degree of mitigation measures in place in various areas. While this third pattern was not seen with past influenza pandemics, it remains a possibility for COVID-19. This third scenario likely would not require the reinstitution of mitigation measures, although cases and deaths will continue to occur.
COVID-19:The CIDRAP Viewpoint
PRARAM 9 HOSPITAL : Corporate Strategy
P.23
PRARAM 9 HOSPITAL : Corporate Strategy
A = ADVANCEDSpecialized, Integrated Solution for Complex
Disease
B = BETTERQuality of Life for All
Age Group
V = VIRTUALHospital for New Normal
“ PRARAM9 A-B-V ”
Operational Statistics & Financial Performance
PR9 Strategies
2
3
Business Update & Project Update4
Overview & PR9’s Strengths1
Agenda
P.24
P.25
Top Line
Initiatives
: Everyone turn
to be sales
Self Pay &
Network
Expansion
Cooperation
Corporate
& Insurance
Coverage
Int’l
Patient Agent
1. New Products & Services to match with “New Normal Lifestyle”
2. Direct Sale Penetration : B2B
3. Effective Brand and Marketing Communication -Focus Online Marketing : Campaign Management
4. Enhance Conversion and Referral Policy
5. Maintain Relationship with Customers & Implement Database Marketing
Target Segment
Expat
Group Expansion
Revenue Management Strategy : During Covid-19
1. New PR9 Services for New Normal Consumer Behavior
P.26
Domestic Patients
P.27
2. Revenue Initiative
Self-Pay Customers• Promotion Covid-19 Safe Hospital Campaign : By SBU • Occasional Campaign : Check-Up / Screening & OR Packages• Online Selling Platform• Promote PR9 Medical Service Delivery
Domestic Patients
P.28
Domestic Market Initiative : B2B Market Penetration
Corporate & Insurance • Promotion Covid-19 Safe Hospital Campaign • Customized Healthcare packages for each Company• B2B Online Selling Platform via Insurance Companies• Telemedicine consulted by doctor for Corporate Customers and High end Residences• Out Reach Clinic Proposed Big Companies / Schools
New CBD Condo & High End Residences
Private Schools
INTERNATIONAL (EXPATS)
CAMBODIAINTERNATIONAL AGENT SUPPORT : ONLINE MARKETING MYANMAR
CHINA
Closure of Airports- PR9 Telemedicine- Medicine delivery- Influenza vaccine delivery
P.29
GROUP: CANCER
FACEBOOK GROUP MYANMAR : “THE COMMUNITY”GROUP:
KIDNEY+DM+GI
P.30
Distribution Channel• Online• SMS, EDM • Friend-Get-Friends• Corporates• Chambers of Commerce & Embassies
Expats & Int’l Insurances
P.31
Phase 1 (Jan.) - Telemedicine for GP DoctorsPhase 2 (May) - Extension for Second opinion in specialistsPhase 3 (Jun.) - Mental Wellness
Extension project : “Telemedicine to be OPD& IPD”: DA & PR9 + Int’l insurance to go with…(Mercer, Aeon, Howden Maxi, Maxis, Tower Watson & Int’l Brokers)
Promotion Packages
Other Market Initiative : EXPATRIATES
“COVID SAFE HOSPITAL CAMPAIGN”
SHORT VDO
“SBU Covid-19 Safe”
MEDIADIGITAL MARKETING
3. Effective Branding and Marketing Communication
P.32
Zero Loss Customer & Price Estimation Center
P.33
4. Enhance Conversion and Referral Policy
5. Database MarketingEnhance Revenue from existing customers, Database Marketing : Upsell VS Cross Sell
1270 Call Outbound Sell Email Marketing Line @ Official Account
Construction Progress – Building B
P.34B1 & 1 Fl.
Construction Progress – Building B
P.35Main Lobby
P.36
Construction Progress – Building B
Advanced Pain Management & Wellness Institute ( Fix & FIT ) : 11 Fl.
Construction Progress – Building B
P.37IPD Ward : 15 Fl. & 17 Fl.
: Back Office Building: Nurse Condominium
Construction Progress – Office & Nurse Condominium
P.38
“Thank You”