Bumrungrad Hospital Public Company

Limited
Investor
Presentation
March 2015

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1

Disclaimer

The information contained in this presentation is for information purposes only and does not constitute an
offer or invitation to sell or
the solicitation of an offer or invitation to purchase or subscribe for any securities of Bumrungrad Hospital
Public Company Limited (the
"Company") in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in
connection with, any contract or
commitment whatsoever.

This presentation is being communicated only to persons who have professional experience in matters
relating to investments and/or
to persons to whom it is lawful to communicate it under the laws of applicable jurisdictions. Other persons
should not rely or act upon
this presentation or any of its contents.

Certain information and statements made in this presentation contain the Company's forward-looking
statements. All forward-looking
statements are the Company's current expectation of future events and are subject to a number of factors
that could cause actual
results to differ materially from those described in the forward-looking statements. Prospective investors
should take care with respect
to such statements and should not place undue reliance on any such forward-looking statements.

This presentation has been prepared by the Company solely for the use at this presentation. The information
in this presentation has
not been independently verified. No representation, warranty, express or implied, is made as to, and no
reliance should be placed on,
the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None
of the Company, any of
its affiliates or any of their respective agents, advisors or representatives, shall have any liability (in
negligence or otherwise) for any
loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising
in connection with this
presentation. The information presented or contained in this presentation is current as of the date hereof

and is subject to change

without notice and its accuracy is not guaranteed. None of the Company, any of its affiliates or any of their
respective agents, advisors
or representatives, makes any undertaking to update any such information subsequent to the date hereof.

This presentation should not be construed as legal, tax, investment or other advice. No part of this
presentation shall be relied upon
directly or indirectly for any investment decision-making or for any other purposes. Prospective investors
should undertake their own
assessment with regard to any investment and should obtain independent advice on any such investments
suitability, inherent risks
and merits and any tax, legal and accounting implications which it may have for them.

Certain data in this presentation were obtained from various external data sources, and none of the
Company, any of its affiliates or
any of their respective agents, advisors or representatives have verified such data with independent sources.
Accordingly, the Company
makes no representation as to the accuracy or completeness of those data, and such data involve risks
and uncertainties and are
subject to change based on various factors.
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Agenda

Overview
Strategy
Operational Update
Financial Performance
Associated Companies

PG.

customer service oriented patient care

Established in 1980; listed on SET in 1989
Bumrungrad International Hospital
o Facilities
One of the largest and most
sophisticated private
hospitals in South-East Asia
580 licensed inpatient beds and 5,500
outpatient
visit capacity per day
Thailands leading tertiary medical
center
Red Cross rated Class A tertiary care
center; a
regional referral center
o Accreditation
1st hospital in Asia to receive US JCI
Accreditation, in 2002. Re-accredited by
the JCI in
2005, 2008, 2011 and 2014. JCI
Disease-Specific
Certification, heart and stroke programs
(since
2006); Chronic Kidney Disease and
Diabetes
Mellitus (since 2010)
1st private hospital in Thailand with Thai
Hospital

Accreditation (1999)
o Patients
Over 1.1 million patient episodes
annually
Over 500,000 international patient
episodes
annually from over 200 countries
o Services
55 Sub-Specialties

Value & Profitability Comparison

EV/bed (MB/bed) Y2014
200
180
160
140
120
100
80
60
40

SKR
KPJ

FOHE

10

12

Y2014 EBITDA Margin

Source: IBES/Bloomberg, SET
Note: Thai hospitals EBITDA margins are unadjusted for doctor revenue

PG.

ROE & P/B Comparison

35

30

25
NTV

CMR

KPJH
M-CHAI

IHHH
FOHE

Price to Book
Source: IBES/Bloomberg, SET

PG.

TOP 10 REGIONS HEALTH CARE PROVIDERS BY

MARKET VALUE
COMPANY/COUNTRY
IHH HEALTHCARE/MALAYSIA
RAMSAY HEALTHCARE/AUSTRALIA
BANGKOK DUSIT MEDICAL SERVICES/THAILAND
BUMRUNGRAD HOSPITAL/THAILAND
APOLLO HOSPITALS/INDIA
PRIMARY HEALTH CARE/AUSTRALIA
RAFFLES MEDICAL GROUP/SINGAPORE
SILOAM INTERNATIONAL HOSPITALS/INDONESIA
KPJ HEATLHCARE/MALAYSIA
FORTIS HEALTHCARE/INDIA
Sales are estimates for year ending Dec. 31; Market value as of Aug 18.
Sales for year ended Jun 30 are estimated for Ramsay, final for primary.
Final sales for year ended Mar 31.

Source: Forbes

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International Volumes
2001 to 2014

431,954

426,398

391,559
365,386

300,000

200,000

100,000

2004

2005

2006

2007

Y2014 Top 10 revenue contribution by Residency

and Nationality

Residency
Thailand

47.9%

UAE

8.8%

Nationality
Thailand

38.9%
Myanmar

8.4%

Myanmar

8.5%

UAE

6.8%

Oman

6.4%

Oman

6.6%
4.8%

Cambodia

3.5%

USA

Bangladesh

3.2%

Cambodia

3.2%
Mongolia

2.2%

Bangladesh

USA

2.0%

Japan

2.6%

Qatar

2.0%

UK

2.3%

Kuwait

1.8%

Qatar

3.2%

53%

1.8%

1Q14
2Q14
3Q14
International
Thai

4Q14

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9

Why Bumrungrad?
Located in Thailand
Invested the Time
Invested into the
Brand
Invested into Training
Invested into
Technology
Invested into
Facilities
Invested into

Processes

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Thailands unique advantages

Good doctors
Lower cost labor
Service culture
Image as value destination with good tourism
infrastructure
Consumer-driven healthcare
Self pay, walk in environment

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Doctors & Nurses

55 Sub-Specialties
Over 2,000 nurses and professional staf
Over 1,300 physicians and dentists
International experience staf and
overseas board certification (over 320 are
US, UK or Australian Board certified)
PG.1

International reputation
Inside Man
The top destination hospitals are designed to
be models of
efficiency
China Daily
Affordable and high quality medical care is
helping to
entice visitors to the ASEAN region
International Herald Tribune
Its better than anything Ive seen; its a five
star hospital.
CBS 60 Minutes
Its the number one international hospital in
the world.
The Financial Times
They (Bumrungrad) said, you can have
(surgery) done
heard that

tomorrow if you want. Tomorrow! I have never

word in England in all my life.

Newsweek
Bumrungrad International Hospital in Bangkok
is a magnet
for medical tourists.
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Invested in Technology Integrated

Services

Laboratory Automation
System:
Abbott ACCELERATOR
a3600
Hospital-wide Wi-Fi, record
access in every room

Swisslog pharmacy
robot

1-stop checkup center; cashier,

pharmacy on every OPD floor

Single patient record, unified

HIS

Invested in Technology - Website

Visual experience on web: pick your doctor or
your room
Information about medical procedures or
specialty centers
Cost estimates

PG.1

Premium Inpatient Facilities

Customer-oriented patient
service culture supported by
hotel-like ambience in a
warm and restful
environment

PG.1

Expansive Outpatient Facilities

Large scale outpatient facilities allow extensive variety of services with
privacy, comfort and efficiency

Sky
Lobby

Ground Floor Lobby

Welcome Center

Processes - International Referral Offices

26 offices in 17 countries outside Thailand
that arrange appointments and travel for BI
patients
Australia

Kuwait

Bahrain

Lao PDR

Bangladesh

Mongolia

Cambodia (3)

Myanmar (4)

China (2)

Oman

Ethiopia

Russia (2)

Hong Kong

UAE (Dubai)

Indonesia (2)

Vietnam (2)

Kazakhstan

PG.1

Processes - Health Screening Center

Managed using Constraint Theory
Entry portal for medical travelers
One-stop floor for a complete
check-up
Average 200 per day, 7 days a week
50% walkin

Only screening services No

acute
services
No variation in screening
services,
based on medical evidence

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Agenda
Overview
Strategy
Operational Update
Financial Performance
Associated Companies

PG.2

Campus expansion
Doctor recruitment in subspecialties
Advanced technology
Skilled work force

Development of the Bumrungrad Network

Leverage economies of scale in knowledge

Evolve UB Songdo into a regional hospital

Develop a Diagnostic Clinic in Myanmar
Review of selective opportunities in
existing

referral markets

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 Opened 5 floors in Bumrungrad International

Clinic
Renovate and expand clinics in Bumrungrad
International Hospital
Added 18 ICU beds and 58 ward beds in
Bumrungrad

International Hospital building

Renovate and expand ancillary services
Bought 8,200 sq. meters of land on Petchburi

Road.
EIA approval received
Bought 6,178 sq. meters of land on Sukhumvit
Soi 1 to

2015

initially develop a parking structure

Grand opening of Bumrungrad Tower on 6 March
for employee houses and back office functions
Acquired controlling interest in UB Songdo

hospital
Y15

Y16

Y17

Y18

1,598

3,231

4,550

392

Total
9,771
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EIA Approval was obtained for

the
Petchburi Campus on 29
January
2015.
Phase 1 of the Soi 1
development
will be a parking structure
Renovate BHR with clinical
activity
on 3 floors (if allowed by BMA
and
MOPH) and replacing the MEP
infrastructure.

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Campus Expansion BI Hospital Building

Added 18 ICU beds and 58 ward
beds
Hospital

in Bumrungrad International
building

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4

Campus Expansion The new Liver Center

The new Liver Center has

been opened on the third
floor, BI Hospital Building.

PG.2

Technology IBM Watson

Oncology
A cognitive computing system
developed
collaboratively by IBM and Memorial
Sloan Kettering, one of the worlds
leading cancer center

Analyzes information from the

medical
literature, international treatment
guidelines and recognized world
experts

Integrates patient information into

the
analysis and makes individualized

treatment recommendation to
provide
state of the art care with the best
outcome for Bumrungrad patients
with
cancer.

Skilled Workforce

A unique Simulation Training Center. Bumrungrad is Thailands

first private
hospital to use such an innovative training facility to improve
patient care.
currently equipped with the latest version full body manikin and
infant manikin
which can simulate more than 60 key situations including pulse,
heart rate,
pulmonary sound, sweating, tearing, and purple nails.

 The simulation center can accommodate registered nurses up to

eight sessions
per day.
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 BH entered into the Donation for

Educational
to
training
which
per year

Support Agreement with St. Louis College

donate 69 MB for expansion of nurse
program and facilities of St. Louis College
will provide an addition 60 nurse students
BH will offer scholarships and

employment

program for those 60 nurse students

This cooperation will secure nursing staffs

for BH

Established a new subsidiary for

education and

training in clinical and healthcare service

Focused on improving and expanding the
group

of companies training capabilities

Provide training services to outside

parties

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Current Status Petchburi Project

EIA Approval was obtained

for
29

the Petchburi Campus on

January 2015.
The EIA Approval allows:
100% FAR: 8,204 x 8 =

65,632 m2
19.2% Bonus FAR =
12,601 m2
Maximum FAR = 78,233
m2
Construction Area is likely
to be

around 85,000 m2
Construction expected to

start in

November 2015

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Current Status Soi 1 Parking Lot Project

Land bank Soi 1 with phase 1

development of a parking
structure

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Bumrungrad Tower
Bumrungrad Tower on Rama IV
road
23-storey building in good
condition
Land area 3,368 sq.m.
Total building area of 40,650 sq.m.
will
accommodate
- 300-400 back office employees
- Dorm rooms for over 1,000
employee
Renovation cost approx. 220 MB
Grand opening of Bumrungrad
Tower on
6 March 2015 for employee houses
and
back office functions

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Agenda
Overview
Strategy
Operational Update
Financial Performance
Associated Companies

PG.3

4th Quarter: Outpatient volumes

advanced
14.9% in 4Q14 compared with 4Q13,
with
most

of

the

increase

due

to

volumes
contributed by the UBSD acquisition,
and
strong

growth

in

international

volumes.
Excluding UBSD, outpatient volumes
grew
3.7% in 4Q14.
2Q
(inc. HHE)

3Q
(inc. HHE)

4Q
(inc. HHE)

4Q
(exc.HHE)

YTD Dec: Outpatient volumes

advanced 7.5%
in 2014 compared with 2013 as a
result of
volumes added by the UBSD
acquisition.
Excluding UBSD volumes, outpatient
volumes

declined 1.5% in 2014.

(exc. HHE)

PG.3
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Admissions Volume Trend

Average Admissions per Day

4th Quarter: Inpatient volumes

advanced
19.8% in 4Q14 compared with 4Q13,
with
most of the increase due to
volumes
contributed by the UBSD acquisition,
and
strong growth in international
volumes.
Excluding UBSD, inpatient volumes
grew
7.4% in 4Q14.
1Q

2014

YTD Dec: Inpatient volumes advanced

11.2%
in 2014 compared with 2013 as a
result of
volumes added by the UBSD
acquisition.
Excluding UBSD volumes, inpatient
volume

grew 1.8% in 2014.

PG.3
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Average Daily Census Volume Trend

Average Daily Census

4th Quarter: ADC advanced 19.7% in

4Q14
compared with 4Q13, with most of
the
increase due to volumes contributed
by the
UBSD acquisition, and strong
growth in
international volumes. Excluding
UBSD, ADC
grew 3.7% in 4Q14.
2013

2014

YTD Dec: ADC advanced 12.2% in

2014
compared with 2013, with most of
the
increase due to volumes contributed
by the
UBSD acquisition. Excluding UBSD,
ADC

grew 0.3% in 2014.

370

(exc. HHE)

2013

2014

PG.3
5

OPD Revenue Intensity

Revenue per Visit
Revenue per episode reflects an increase
from the
1st Jan 2014 price adjustment.
OPD Revenue intensity :
4th Quarter

2013

2014

Revenue per Visit

13.2%
Bt
9,000
8,000
7,000
6,000
5,000
4,000

2012

2013

2014

(inc. HHE)

YTD Dec

Including HHE Consolidated FS

-7.0%

-8.9%

Excluding HHE Consolidated FS

2.1%

-1.7%

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6

IPD Revenue Intensity

Revenue per Admission
Revenue per episode reflects an
increase from the
1st Jan 2014 price adjustment.
IPD Revenue intensity per admission:
4th Quarter
Dec
Including HHE Consolidated FS

-11.3%

Excluding HHE Consolidated FS

-0.3%

-6.7%
1.7%

Bt
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0

YTD

2012

2013

2014

For 4Q14: Revenues by market segment

international patients
accounted for 63.2% of the total in 4Q14, with the
remaining
36.8% from Thai patients, reflecting a decrease in
the 39.1%
from Thai patients in 4Q13, and the noted
improvement of the
international business.

2014 Top 5 revenue contribution by Non-Thai

Nationalities
Myanmar

Volume Contribution by Nationality

100%
80%
60%
40%
20%

8%

UAE

7%

Oman

7%

0%
3Q13 4Q13 1Q14 2Q14
International
Thai

3Q14

4Q14

PG.3
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Revenue Breakdown
Inpatient vs. Outpatient (% of revenue)
100%

52%

52%

52%

48%

48%

48%

3Q13 4Q13 1Q14 2Q14

Inpatient
Outpatient

3Q14

4Q14
Y2014

4Q14 Revenue growth:

Outpatient revenue increased by 14.4% y-o-y
Inpatient revenue increased by 13.9% y-o-y
Self-pay remains the primary method of payment

PG.3

Agenda
Overview
Strategy
Operational Update
Financial Performance
Associated Companies

PG.4

Operating Performance
2010-2014
Total Revenues
12% CAGR
14,042
790
13,252
11,306

2011

2012*

* One-time revenue of THB 790 million in 2012 was gain on sale of investment in subsidiary.

Remark: The calculation of CAGR is excluding the extraordinary items.

Profit
3,000

2,730

2,500
2,000
1,500
1,000
500
0
2010*

2011**

2012***

2013

2014

* One-time loss of THB 63 million in 2010 was loss on the translation adjustment from the sale of Asia
Renal Care (ARC) Group
** One-time profit of THB 33 million in 2011 was tax loss on sale of BMC THB 106 million offset with loss
on sale of AHI THB 24 million and loss on share repurchase THB 50 million
*** One-time profit of THB 548 million in 2012 was gain on sale of investment (KH), net of tax THB 567
million offset with capital gain tax and tax advisory services on AHI sale THB 14 million and certain wind
down and operation costs of BIL THB 5 million.

Remark: The calculation of CAGR is excluding the extraordinary items.

Margins & Trend

EBITDA Margin Trend

27.7%
15. 1%

2012*

2013

2014

*Excluding extraordinary
items

Margins have been growing over the last 5 years

PG.4
2

THB million
4,600
4,500
4,400
4,300
4,200
4,100
4,000
3,900
3,800
3,700

Cost of hospital operations (including Depreciation and

amortization) of Baht
9,496 million for 2014, or 7.5% more year-over-year from Baht
8,836 million in
2013, compared to the 9.3% growth in Revenues from hospital
operations. The
percentage of Cost of hospital operations to Revenues from
hospital operations
improved from 62.0% in 2013 to 61.0% in 2014.
Administrative expenses
(including Depreciation and amortization) were Baht 2,806
million in 2014,
increasing 11.0% from Baht 2,527 million in 2013. This change
included Baht 74
million in additional repair and maintenance expense, Baht
69 million in
donations to support nurse recruitment, Baht 43 million in
inflationary increases
in staff cost, Baht 29 million in Depreciation and amortization
associated with
the campus expansion and revised estimated useful lives of

certain assets, and

Baht 20 million more in software support and maintenance.
EBITDA grew 12.4%
year-over-year from Baht 4,016 million in 2013 to Baht 4,516
million in 2014,
with the EBITDA margin advancing to 28.6% in 2014 compared
with 27.7% in
2013.

Leverage
Net Debt to EBITDA
35.9

0.4
14.9
0.00
2010

2011

2013

2014

2010

2011

*Interest expense related to the purchase of common shares of Bangkok

Chain Hospital PCL
coverage ratio was Baht
Assuming this interest
transaction would be Baht
related to the campus

(doing business as "Kasemrad Hospital Group") to calculate interest

111 million based on remaining days after the transaction settled.
expense was incurred for the full year, interest expense from this
140 million and interest coverage ratio will be 12.9x
**After adding back the 2014 and 2013 capitalized interest expense
expansion.

As a result of the increase in Cash and cash equivalents,

Net debt to
equity improved to 0.0x as at 31 December 2014 from
0.2x as at 31
December 2013.
After adding back the 2014 and 2013 capitalized
interest expense
related to the campus expansion of Baht 55 million
and Baht 97

million, respectively, the Companys Interest coverage

ratio improved
to 18.8x in 2014 from 16.4x in 2013, due to higher
EBITDA in 2014
compared to 2013.
Note: Net debt excludes fixed deposits with a maturity exceeding three months but
not more than one year which are reported as Short-term investments of Baht
1,922 million in 2014 and Baht 2,718 million in 2013.

PG.4
4

The current dividend payout ratio

has

slightly decreased from 2013.

0.88
0.45

0.40

2009

Payout Ratio
80%

60%

49.8%

40%

20%

0%
2009

PG.4
5

Agenda
Overview
Strategy
Operational Update
Financial Performance
Associated Companies

PG.4

Investment in Mongolia
On 28 March 2014, Health Horizons Enterprises Pte. Ltd. (HHE), an
overseas
subsidiary 80% owned by the Company, acquired 100% of the common
shares of
Bumrungrad Mongolia LLC (BML), which holds 51% of the common shares
of Seoul
Seniors Tower LLC (SST), for approximately USD 12 million in cash.
Additionally, HHE
provided a loan of USD 3.3 million to SST, which owns and operates
Ulaanbaatar Songdo
Hospital (UBSD) in Mongolia.
The seller of shares of SST is entitled to receive additional contingent
consideration in
the form of earn-out payments, provided certain cumulative net profit targets
are achieved
through December 31, 2016, at the maximum of MNT 10,965.9 million, which
has not yet
been recorded.
HHEs consolidated assets and liabilities, which include SST and BML
as of the
acquisition date, are included in the Companys consolidated financial
statements for 1Q14.

HHE has recorded the net tangible assets of SST and BML acquired at their fair
values as of
the acquisition date. The remaining excess of the purchase price over the net
value of the
tangible assets acquired was allocated as goodwill. The preliminary amount
of goodwill,
which excludes any impact from additional contingent consideration, is
approximately USD
3.5 million.

PG.4
7

Ulaanbaatar Songdo Hospital (UBSD)

Corporate Structure

BML acquired 51% of common shares of Seoul Seniors Tower LLC

SST, who owns
and operates UB Songdo on 28 March 2014
UB Songdo currently has 98 beds, diagnostic imaging, and 60 doctors
in major
medical specialties both inpatient and outpatient care
One of 4 hospitals and only private hospital in Mongolia with a
nationwide general

hospital license
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