thonburi healthcare group pcl - listed...

Thonburi Healthcare Group PCL

27 February 2017

Press Conference

2

Agenda

Company Overview1

2

3

4

Business Highlights

Investment Highlights

Transaction Summary

3

Part 1: Company Overview

4

6020 600Registered

Capital (THB mm)

300 764 849

Company Vision & Key Milestones

Restructuring and preparing for Initial Public Offering (IPO)

20141991

Increased available beds from 60 beds to 113 beds

1980 2011

199719951977

2016

Entered into Public-Private Partnership agreement to provide hospital management service for Phuket Provincial Hospital

Signed JV agreement with WEGO Holding (China) to set up JV hospital, Welly Golden Bay Hospital

Registered as a public company limited

1994 1996

2003

2009

Investment in RajthaneeRealty Co., Ltd.

2001

2012

Entered into Public-Private Partnership agreement to provide hospital management service for Pattaya City Hospital

Thonburi Hospital started operation

Collaborated with Siam University to set up Bachelor of Nursing Curriculum

2013

Collaborated with Siam University to set up a curriculum for Faculty of Medicine

1993

Opened Thonburi 2 Hospital

Investment in Dental Siam Co., Ltd.

Investment in Rajyindee Hospital Public Company Limited

Investment in Thonburi Hospital Heart Centers Co., Ltd. And Premiere Home Health Care Co., Ltd.

Over 40 years of experiences in hospital business

Vision“To be provider of extensive medical resources and n etwork of hospitals with qualified standards, using cutting-edge

medical innovation, gaining patients and families’ trust, and providing healthcare services at an affo rdable price”

5

Part 2: Business Highlights

6

Hospital Business Healthcare Solution Provider Other Business

Domestic / International Hospital

• 6 Hospitals

• Registered Bed: 1,116 Beds

Available Bed: 833 Beds in Thailand

23 Beds in China

• OPD Rooms: 195 Rooms

Hospital Management Service

• 2 Hospitals and 1 Medical Center

• 239 Beds under management

Excellent Center Management Service

• 2 Heart Centers under management

Home Healthcare

• Medication services to patient’s home ex. check up, treatment, rehabilitation

Dental Supplies Retailer and Drug Stores

• 10 Drug stores (as of today)

• Exclusive distributor for dental supplies: 30 brands

Step-Down Care [Future project]

• A rehabilitation center for patients who need no close watch from doctors

Medical City Rangsit [Future project]

• The mixed-use development to provide services needed by senior in all ages

Software Development

• Develop software to support internal departments and connect with other networks such as Social Security Office, National Health Security Office, The Comptroller’s General Department

Project Development for Healthcare & Medical Services

• Land Pipeline: 1,931 Rai

• Book Value: THB 1,672 mm

Business Characteristics

2 31

2015 Revenue: THB 5,416 mm (93.6%) 2015 Revenue: THB 358 mm (6.2%) 2015 Revenue: THB 12 mm (0.2%)

7

Hospital Accreditation of Thailand (HA)

• 5 Hospitals

International Organization for

Standardization (ISO)

• 1 Hospital

Neuroscience Center

Orthopedic Center

Women’s Center

Heart Center

Gastrointestinal and Liver Center

Hospital ManagementExcellent Center Management

Network Hospital

Hospital (Thailand) 5

2

2

9

Network Hospitals 5 Key Excellent Centers

Hospital Standard Accreditation

1.1 Hospital Business

• Hospital Management –Phuket Provincial Hospital

• Rajyindee Hospital

• Ubonrak Thonburi Hospital

• Hospital Management –Pattaya City Hospital

• Heart Center - Bangplee Hospital• Heart Center - Phatra Hospital

• Welly Golden Bay Hospital (China)

• Thonburi Hospital• Thonburi 2 Hospital

• Sirivej Hospital Chanthaburi

5 domestic 1 international hospitals and other medical networks

Hospital (China) 1

8

Thonburi Hospital Heart Center Co., Ltd. serves both private and public hospitals those lack teams of highly skilled cardiologists, medical staffs and advanced machines which will allow heart patients to get access to high quality care with lower price.

Location of Service• Bangplee Hospital (Public)• Phatra Hospital (Private)

Business Model• Public Hospital – Government bare the cost for machines• Private Hospital – The company co-invests in machines

1.2 Management Service Business

THG is the first private hospital to enter into Public – Private Co-operation agreement with Ministry of Interior and Ministry of Public Health. Using its specialties in hospital / excellent center management and network connection with many specialists, this

so-called ‘Asset Light Model’, which requires less capital in vestment and provides a considerably high profit ma rgin

Public – Private Co-operation

Expand THG’s Patient Base

Better Quality of Service for Public

Hospitals

Better Quality of Life for People in

the Area

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

High bloodpressure

Heartdisease

Diabetes Anemia Renalfailure

2009 2013

Top 5 Leading Causes of Hospitalization /1

25%

13%

5%

1%26%

Provide public hospitals with experienced doctors medical staffs and professional management team, aiming to bridge the gap between public and private hospitals’ healthcare standards as well as mitigating excessive waiting periods and staff shortages commonly found in public hospitals.

Location of Service• Pattaya City Hospital• Phuket Provincial Hospital• Central Medical Unit (CMU)

(Kohlan)

HOSPITAL MANAGEMENT

EXCELLENT CENTER MANAGEMENT

Business Model• Few CAPEX – High ROE/ROA• Fixed contracted revenue• THG responsible for cost

management

1/ Sources SCB EIC analyst research

9

Company Dental Siam Co., Ltd.

Business One-stop service dental supplies shop

Customer Faculty of Dentistry of well-known universities

Product Exclusive distributor of dental supplies 30 brands

Premiere Home Health Care Co., Ltd offers solution for better health, better treatment follow-up, and better quality of life for the whole family with services delivered to your home

by a multidisciplinary team of experienced medical personnel.

• Medication dispensing and delivery• Health evaluation & Blood analysis • Vaccination and immunization• Information and counseling

• Wound care• Post-surgery care• Pain management• Fall prevention

• Physical therapy for patients with orthopedic symptom

• Physical therapy for patients with neurological disorders

• Cardio-Pulmonary Rehabilitation

• Ultrasound for blocked milk ducts The company has allergy and dust mites specialists and expert staffs to create clean environment that meet hospital standards for every home

�Cost Saving

�Enhance Quality of Life

�Time Saving

10 Drug stores brand “Apex”

• The Mall Ramkamhang G floor• The Mall Ramkamhang 1nd floor• Tops Central Rama 3• The Mall Ngamwongwan G floor• The Mall Ngamwongwan 5th floor• Fashion Island• Futurepark Rangsit• Platinum Fashion Mall • JAS Srinakarin (open Nov 2016)• Makro Wanghin (open Dec 2016)

Basic Treatment

Service for New Mom

Skilled Nurse Service Physical Therapy Service

Standard Hospital-Accredited Housekeeping

[Future project]

HOME HEALTHCARE

STEP DOWN CAREDENTAL SUPPLIES & DRUG STORES

2. Healthcare Solution Provider Business

Operated Under

1 2Business • Rehabilitation Center

Target Customer

• Recovering patients• Patients with chronic diseases

Key Benefit to THG

• Reduce ALOS of IPD patients and increase revenue per bed day of Thonburi Hospital

Key Benefit to Customer

• Reduce financial burden of the patient and family

10

Location: Rangsit – 40 km. from CBD / 5 km. from major attraction / Easy access via public transportation and toll way

Project area: 140 rai

Appraisal value: 2,477 THB mm/1

Project counterparties: SHMA, Thomson Adsett (specialized in seniors living design), OPNBX, VAMED (global provider for hospitals and other facilities in the healthcare sector) Ju

ly 2

01

8

Pha

se 1

Pha

se 2

Pha

se 3

Mid

20

20

Expect completion Mid 2022

Highlight: 1) 24 hrs emergency

2) Personal tracking GPS

3) Full range of medical services

Project Map

Target Customers

Young Senior (Age 45 – 60)Working age groupIncome: THB 200,000 monthly

Thai/Foreign InvestorsFor rentalFor short term/long term investment

Phase 1 : Active Living / Aged Care / Wellness Cent erPhase

Remark: /1 Appraised value on 1 March 2016 by Fast and Fair Valuation Co., Ltd.

Elderly (Aged 60 or above)Single or married Income: THB 80,000 monthly

Adult (Aged less than 45)For parentsIncome: THB 100,000 monthly

2. Healthcare Solution Provider Business (Con’t)

SENIOR LIVING COMPLEX

1) Active Living• Selling price – 90,000 to 120,000 THB/sq.m.• Units / Area – Total 1,300 units and NSA 70,000 sq.m.

2) Aged Care : 200 beds (initially available 100 beds)*With monthly fee charged*

3) Wellness Center• Rehabilitation Center – e.g. hydrotherapy• Community center facilities – e.g. fitness center, swimming pool

*With rehab package and membership fee charged*

Type of Facilities

[Future project]

11

THG Group Strategy – Overview

GROUP BUSINESS STRATEGIES

Medical City Development

Software Development

& Project Development

Dental Supplies & Drug Stores

Home Healthcare

Step Down Care

Excellent Centers

Provincial Hospitals

Hospital Management

Inter-national

Hospitals Hospital

High Medical Intensity

Low Medical Intensity

Hospital Business

• To expand service capacity in core hospitals

• To cover wider range of medication ex. cancer center, critical care

• To extend hospital network in provincial area with high growth potential

• To selectively invest in international hospital with strong partner

Other Supporting Services

• To increase drug stores coverage and extend market for dental supply

• To develop land in potential location for future projects in pipeline

Hospital / Excellent Center Management Services

• To expand and strengthen management service partnership network, focusing on “Asset Light Model” which contributes higher margin

• To grow hospital management services on international level, currently signed MOU to manage Tong He Hospital (China) and negotiate on turn-key services for ARYU International Hospital (Myanmar)

Home Healthcare / Step – Down Care / Senior Home

• To service a full-coverage of medical care ranging from Hospital (high and complete care), Step-down Care (rehab center), Senior Home Care (24-hour elderly care) to Home Healthcare (check up and follow up treatment at home)

“THG’s core competencies lies within its hospital operation that synergizes with the overall group’s

businesses”

12

Partner Background

Leading manufacturer of medical devices in China

A large medical group in China

Leading company in brand developer, property & real estate, hotel, retail, and trading business in Myanmar

Welly Golden Bay hospital

Location: Wei Hai, Shandong provinceProject: Private hospital in an area

mostly populated by state hospital

Strategy for Expansion into International Market

Management Contract

1. Strategic Increase – Using asset light model that enhance ROE and ROA

2. Focus on Asia region

3. Tap into markets where level of medical sophistication offered by local hospitals are insufficient for local demand

Investment

1. Selective Increase – Promising growth potential

2. Leverage on strong partner is one of key factor

3. From initial small investment until proven success

Management Contract

Location: Guandong, ChinaProject: Hospital management for

Tong He hospital

Tong He HospitalARYU International Hospital

Location: Yangon, MyanmarProject: Build the first hospital with

international standard in the area

Ga Mone Pwint

Asia Continent

Tong He Hospital

Ga Mone Pwint

Project Details

Welly Golden Bay hospitalPrivate hospital with 200 registeredbeds and 23 active beds due to currentrenovation but expect completion

Tong He HospitalManages Tong He hospital. Contract isunder negotiation and initial fee of CHY6 – 9 mm is expected

ARYU International hospitalNegotiating on turn-key for design hospital with contractvalue 20m$ and design management system and medicalequipment with contract value 25m$

Strategy for International Hospital & Management Service

13

Hospital Management Healthcare Solution Provider

Tha

iland

Inte

rnat

iona

l

• Promote product champion• Focus on innovative product

• Increase ALOS for step down care

• Leverage on group’s comprehensive range of medical service from high care (Hospital) to less care (Active Living)

THG Potential Growth Area

• OPD ▲106 roomsIPD ▲ 90 beds

• Boarder medication coverage• Utilized hospital idle time• Penetrate high growth market

• Price improvement strategy• Increase IPD pay per bill due to step-down care• Enhance sophistication of treatment

TH – Increase medical coverageTH2 – Improve to Tertiary care

• Increase existing contracts value • Implement management contracts in pipeline• Penetrate public hospital to get access to new

market i.e. UC and Social Security

• Expand service to network hospitals that have less medical sophistication

• 1-2 contracts in pipeline in 2017


Excellent Center Management Service

Volume growth

Price Growth

Home Care

Step-down Care

Asian Region

China• Welly Golden Bay Hospital – Increase available

beds after renovation

Myanmar• ARYU International Hospital – Invest 10% - 40%

of registered capital of 50m USD depending on success of the project


China• Signed MOU to manage Tong He Hospital with

contract valued 6-9m RMB

Myanmar• Negotiating contract on turn key project for

ARYU International hospital in Myanmar. Contract is valued at 20m USD and 25m USD

Senior Care

Potential growth areas focus on 3 major businesses, using resources and knowledge to expand territory both domestic and international

14

5,370 4,689 5,330 4,892

1,4541,689

2,0175,006

3.69

2.78 2.64

0.98

-0.30

0.20

0.70

1.20

1.70

2.20

2.70

3.20

3.70

0

2,000

4,000

6,000

8,000

10,000

12,000

2013 2014 2015 9M16

Total Liabilities Total Equities D/E

3,180 3,512 3,527 2,647 2,714

636 666 718

521 622

624 627 674

497 536

2013 2014 2015 9M 2015 9M2016

TH TH2 RYD

Group Financial Highlight

THG has promising revenue growth both Hospital Busin ess and Management Service Business

THG Group Revenue Revenue from Hospital Business

Revenue from Management Service Business

Unit: THB mm

5,121 5,515

5,787

4,289 4,661

2013 2014 2015 9M15 9M16

Unit: THB mm

CAGR 6.3%

8.7%CAGR 5.3%

5.7%

Unit: THB mm

149 180 229

163 220

181 198

210

158 162

58

37

111

2013 2014 2015 9M 2015 9M2016

PTY PKT HCT

CAGR 22.7% 37.7%

Balance Sheet

6,824 6,3787,348

9,898

4,4404,805 4,919

3,665 3,872

330378

497

358

493

15

301

453 552

348 405

5.9%

9.8%9.5%

8.1%8.7%

2013 2014 2015 9M15 9M16

Net profit Net profit margin

666

802 868

617 731

13.0%

16.2%

15.0% 14.4%15.7%

2013 2014 2015 9M15 9M16

EBIT EBIT Margin

910

1,034 1,095

785 908

17.8%

20.4%

18.9% 18.3%19.5%

2013 2014 2015 9M15 9M16

EBITDA EBITDA Margin

Group Financial Highlight

Steady improved in margin both Y-o-Y and Q-o-Q with relatively high ROE

ROE

EBITDA Margin 1/

Net Profit Margin 2/

EBIT Margin 1/

Unit: THB mm

Unit: THB mmUnit: THB mm

90

1/ Exclude exchange gain loss 2/ Exclude NCI Excluding non-recurring revenue

90

85

Normalized 18.7%

ActualNormalized 14.5%Actual

Normalized 8.2%Actual

22.30%

38.90%34.00%

2013 2014 2015

16

Part 3: Investment Highlights

17

Investment Highlight

Over 40 years of experiences in healthcare industry

Thonburi Healthcare Groupone of the most sophisticated private hospital oper ator in Thailand

Established in 1977; Registered as public company in 1994

First Mover in Public-Private Co-operation Project

First mover in Public-Private Co-operation projects, pursuing “Asset-Light Model” by offering hospital and excellent center management services

Extensive Medical Resources and Network

17 Network hospitals allow THG to capture benefits in term of cost control and revenue generating from client referral


Medical Sophistication & Affordable price

Specialized doctors and nurses from most well-known medical schools that can offer quality treatment at affordable price for mid to low income people

First Mover in Full-Coverage Medical Business

First mover to expand into full-coverage medical businesses with innovative healthcare services

18

Medical Sophistication & Affordable Price

Medical and Hospital Standard AwardsSpecialized doctors in Excellent Centers

Hospital Accreditation

1

International Organization for Standardization


“One of the most sophisticated ICU centers, e.g. CCU (Cardio care Unit), RCU (Respiratory Care Unit), and other Intensive Car e Units (ICUs)”

18,609

28,293

VIBHA TH1&2 RAM BDMS SVH BH

2,364

3,867

VIBHA TH1&2 RAM BDMS SVH BH

Affordable Price Range 1/

1/ Sources from 56-1, SCBS research, and company information

There are rooms for IPD and OPD price increase compa red to average market rate

Neuroscience Center

Orthopedic Center

Women’s Center

Heart Center

Gastrointestinal and Liver Center

IPD Price OPD Price

19

Invest in training qualified medical staffs by coordinating with Siam University for both Faculty of Medicine and Faculty of Nursing.

Key benefits

Central regionThonburi Hospital Bangkok

Thonburi 2 Hospital Bangkok

Thonburi Uthong Hospital Suphan Buri

Rajthanee Hospital Phra Nakhon Si Ayutthaya

Phatara-thonburi Hospital Pathum Thani

Pattaya City Hospital Chonburi

Western region

Thanakan Hospital Kanchanaburi

Sirivej hospital Hospital Chanthaburi

North-Eastern region

Ratchaphruek Hospital Khon Kaen

Roi-et Thonburi Hospital Roi Et

Ubonrak Thonburi Hospital Ubon Ratchathani

Southern regionPhuket Provincial Hospital Phuket

Thonburi-Chumphon Hospital Chumphon

Nakhonchristian Hospital Nakhon Si Thammarat

Trangruampat Hospital Trang

Rajyindee Hospital Songkhla

Siroroj Hospital Yala

Economies of scale allows the company to purchase medical equipment and supplies at lower prices

4. Bargaining power

3. Patient referral

Quick medical services for those patients who urgently need quick treatment

1. Knowledge sharing and co-development

Cooperation among hospitals in network to develop or improve quality of medical treatment

Extensive Medical Resources and Network

17 Network Hospitals in Strategic Location across T hailand

2

2. Qualified Medical Resources


20

First Mover in Public-Private Co-operation Project with government3

Expand THG’s Patient Base

Better Quality of Service for Public

Hospitals

Better Quality of Life for People in

the Area


• Asset Light Model� requires less capital investment � provides a considerably higher

ROA ROE ratios as compared to hospital business

• High Barrier to Entry: This business model requires THG’s specialties in hospital and excellent center management through its network connection with many specialists

• First mover to enter into Public –Private Co-operation agreement with Ministry of Public Health and Ministry of Interior

• Enable THG to expand customer base to capture patients that use Universal Coverage (UC) or Social Security benefit

21

First Mover in Full-Coverage Medical Businesses4

Hospital and Management Service

Step-down Care

z

• A rehabilitation for patients who no longer have to be under close watch of doctors

• This increases IPD turnover rate and average pay per bed day for Thonburi Hospital and ease financial burden of the patients

• Network of tertiary hospital and hospital management services

• Specialized doctors from one of Thailand most well-known medical schools at an affordable price

Senior Home Care

• A living community for elderly that offers all levels of service and care, from active living, assisted living, to nursing home with 24-hour hospital in the area

Home Healthcare

• Solution for patients with difficulties in finding time to go to hospital or elderly with inconveniences to make repeated trips to hospital


“LIFETIME HEALTH GUARDIAN FOR ALL”

22

Part 4: Transaction Summary

23

Transaction Summary

Company Name Thonburi Healthcare Group Public Company Limited

Stock Exchange / Sector SET / Hospital

Registered Capital 849.08 THB mm / 849.08 m shares @ THB 1.00 par value

Paid – up Capital 764.08 THB mm / 764.08 m shares @ THB 1.00 par value

IPO Size 85 m shares

Use of Proceeds Funding new projects / loan repayment / working capital

Dividend Policy ≥ 40 percent of net profits

Financial Advisor

Lead Underwriters

Indicative Offering Structure

thonburi healthcare group pcl - listed...

Documents