Bangkok Dusit Medical Services : 12.1 56-1 One Report 2023

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BANGKOK DUSIT MEDICAL SERVICES

Public Company Limited

For over 50 years of our business operations,

Bangkok Dusit Medical Services Public Company Limited

has been committed to providing comprehensive healthcare services which focus on a quality at the international level,

coupled with state-of-the-art medicine of both private hospitals

and other relevant businesses.

This has enabled BDMS to become the first medical and healthcare business organization

in Thailand and Asia which has been selected as a member of

Dow Jones Sustainability Indices (DJSI) in the World Market (for the first year)

and in the Emerging Market for 3 consecutive years (2021-2023) in the Healthcare Provider and Services Sector by S&P Global

and has been selected as a sustainable investment through ESG Rating by the Stock Exchange of Thailand for 4 years in a row (2020-2023).

BDMS is committed to developing the healthcare business sustainability

under the adherence to management principles that are consistent with SDGs and ESG,

which is an important mechanism that promotes the future growth of Thailand's public health system and economy.

CONTENTS

Part 1

Business Operation and

Operating Results

04

Message from Chairman

06

Message from Chairperson of Executive Committee

and President

09

BDMS OVERVIEW

10

Financial Highlights

16

Board of Directors and Sub-Committees

24

Structure and Business Operations

68

Risk Management

80

Driving Business toward Sustainability

87

Management Discussion and Analysis

105

General Information

and Reference Information

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Part 2	Part 3	Attachment
Corporate Governance	Financial Statements

108	178
Corporate Governance Policy	The Board of Director's
	Report on Responsibility
130	to the Financial Statements
Independent Auditor's
	Report
Corporate Governance Structure
and Important Information
of the Board of Directors,
Sub-Committees, Executives,
Employees and Others
	Financial Statements

150

Corporate Governance Report

166

Internal Control and

Connected Transactions

179

Attachment 1 Directors, Executives, Person taking the highest responsibility in finance & accounting, Person supervising accounting and Company Secretary

Attachment 2

Directors of Subsidiaries

Attachment 3 Details about

the Head of Internal Audit

Attachment 4

Assets used in the

Business Operation

Attachment 5

Policy and Guidline on Corporate Governance and Business Ethics.

Attachment 6

Report of the Audit Committee

Attachment 7

Juristic persons in which the Company holds 10% of shares or greater

MESSAGE FROM

CHAIRMAN

In 2023, Thailand was still confronted with many challenges from economic fluctuations, prolonged battle situations in foreign countries, increased cost of living, including various changes in a new form of technology and innovation which pose a significant impact on the business operations and consumer behavior. BDMS, as a leader of private healthcare services provider in Thailand, has strongly believed in our potential and readiness of sustainable business operations on the basis of balance among our customers, employees, business partners, shareholders, community and the environment. In this regard, I would like to express my admiration to all executives and personnel as they are always well-prepared to cope with any new challenges and ready to adapt themselves to every situation, all of which enable the organization to continue its growth, both in terms of revenue and profit. In 2023, the Company reported the consolidated operating revenue of Baht 102,1105 million, a 10 percent increase compared to the previous year and net profits of Baht 14,375 million, an increase of 14 percent from 2022. Owing to our robust business operation, the Company; thus, was affirmed the company rating and senior unsecured debentures rating by TRIS Rating at "AA+", with a "stable" rating outlook. Nonetheless, such credit ranking has reflected the Company's leadership status as the largest private healthcare services provider in Thailand with a large network hospital, together with our well-known and acceptable reputation among both domestic and foreign customers.

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Apart from our commitment to creating sustainable growth and returns to shareholders, the Company's Board of Directors and executives have recognized the significance of our roles and duties according to the corporate governance principle. To affirm this achievement, BDMS has been evaluated with an "Excellent" level in the "Corporate Governance Report of Thai Listed Companies 2023" from the Thai Institute of Directors for 4 consecutive years. This evaluation has reflected a strong determination of the Board of Directors, executives and employees in the management with the aim to constantly improve and elevate good corporate governance of the organization to ensure sustainable business development as well as ethical and transparent business operation.

In terms of sustainability, BDMS has been ranked 1st in Dow Jones Sustainability Indices ("DJSI") in healthcare providers and services sector for both DJSI World and DJSI Emerging Markets in S&P Global's 2023 Sustainability Assessment with the highest score in the social dimensions. BDMS is considered the first organization in healthcare providers and services sector in Thailand and Asia to become the DJSI member. In addition, BDMS has been selected to be in the list of ESG rating by the Stock Exchange of Thailand for 4 consecutive years. This has demonstrated the Company's strong determination in driving the sustainability culture in every business operation and activity of the organization by taking into consideration the environment, society and governance (ESGs) while continually delivering good experience to all customers with excellence as well as fostering product innovation and valuable services. This success not only strengthens morale to all BDMS personnel, but also encourages all of us to continue our consistent devotion in the area of sustainable development.

On behalf of the Board of Directors, I would like to express my sincere gratitude to all medical practitioners, executives, employees, shareholders, including business alliances, business partners, community and supporters of every sector for their continued trust and support of our business operation. I strongly believe that the Board of Directors, executives and employees will consistently strive to provide excellent services and create business value with utmost responsibility in collaboration with the society, community and environment for good business performance and sustainable business growth in the long run.

Professor Emeritus

Santasiri Sornmani, M.D.

Chairman

MESSAGE FROM CHAIRPERSON OF EXECUTIVE COMMITTEE AND PRESIDENT

In 2023, COVID-19 pandemic situation around the world has eased to normal. People are traveling internationally again, just like before the pandemic. The impact of this emerging disease has made people more alert to new technologies and innovations, as well as the global environment that affects their quality of life. These factors have an impact on consumer lifestyles and business operations in the world today. Although BDMS has faced volatility from various factors over the past 2-3 years, we have also passed the challenging test of worldwide changes. With our aspiration and preparedness to improve our service formats to align with changing situations

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and customer needs, the Company sees business opportunities from emerging new lifestyles, especially in terms of technology growth and innovation that play an important role in business operations.

With our mission to be a leader in healthcare revolution, providing innovative care, to enhance health and well-being of everyone under the concept of Innovative Healthcare, the Company has continuously supported research and innovation to improve the efficiency of medical services and expand access to treatment for people in society, for example, the development of a new hip replacement surgery technique that does not require muscle cutting (Direct anterior approach hip replacement) which is internationally recognized and has been proven to be effective in reducing the number of patient days and the recovery period by more than 50%. This allows patients to return to their normal lives faster. In addition, the technique has been adapted to be used with a general operating table that can be produced in Thailand instead of a special table. This increases the opportunity to access treatment even in remote areas. Currently, more than 750 Thai and foreign patients have undergone surgery, including patients in need under the Vejdusit Foundation. As a result of this development, the Company received the Best Innovative Company Awards from the SET Awards 2023, which is awarded to listed companies with outstanding innovations that set new standards for innovations that benefit the Thai economy and society. This encourages sustainable development.

In addition to creating innovations to improve the efficiency of treatment and improve medical services, BDMS has set a framework to communicate operational practices among network business organization and business

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under the concept of Innovative Healthcare, the Company has continuously supported research and innovation to improve the efficiency of medical services

and expand access to treatment for people in society

alliances. We have also carried out activities to develop the business in a sustainable and tangible way in all dimensions, including Environment, Social, and Governance & Economy.

Environment dimension: The Company has set a goal of achieving net zero greenhouse gas emissions by 2050 (BDMS NET ZERO 2050). We focus on developing energy, water and waste management as well as promoting the use of renewable energy. We have continuously implemented the Green Healthcare project to push for the application of alternative energy and the complete elimination and recycling of waste in all network hospitals, including pharmaceutical and saline factories, in order to fully integrate into the green industry system.

Social dimension: The Company continues to emphasize the importance of caring for human rights in all aspects, including staff, business partners, and surrounding communities;

so that they can have a good quality of life and have equal access to medical services and healthcare. We have organized training programs on basic life-saving and first aid skills to enable people to help themselves and others in society correctly and safely. We also use Tele Mental Health to take care of the mental health of people in society and communities.

Governance & Economy dimension: The Company operates under the principles of good governance. We formulate a strategic plan that is aligned with sustainable development, take into account sustainable supply chain management and risk management in all dimensions, as well as fairly treat business partners and allies. In addition, we have focused on innovation development, including supporting research in collaboration with leading educational institutions, to improve service standards and increase efficiency and effectiveness.

From balancing society, environment, and good corporate governance with integrity, it leads to sustainable business growth and a strong financial position. As a result, Tris Rating Co., Ltd. (TRIS) affirmed company and unsecured debentures ratings on BDMS at "AA+" with a "Stable" outlook. The key supporting factors are that BDMS is the largest private healthcare provider in Thailand, with a strong financial position and balance sheets, and a continuous improvement in operating results from domestic and foreign patients, revenues.

Our Sustainability Achievements

As a result of our intense and continuous efforts in sustainable development, BDMS has been selected as a member of the Dow Jones Sustainability Indices (DJSI). In 2023, we have risen to the 1st rank as the world's sustainability leader of the Healthcare Providers & Services sector in DJSI World for the first year, and in the DJSI Emerging Markets for the 3rd consecutive year, with the highest score in Social dimension of the Healthcare Providers & Services sector, as assessed by S&P Global. And BDMS is the only healthcare services company in Asia selected as DJSI member.

In addition to our DJSI ranking, we have also been recognized for our sustainability efforts by the Stock Exchange of Thailand (SET), which has selected BDMS into a list of Sustainable Investment (ESG rating) for the fourth consecutive year. Moreover, the Company's corporate governance has been evaluated at the "Excellent" level for the Corporate Governance Report of Thai Listed Companies for the fourth consecutive year, which is a testament to our commitment to good corporate governance.

On behalf of Bangkok Dusit Medical Services Public Company Limited (BDMS), I would like to thank our share- holders, customers, business partners, and all stakeholders for their trust and support in our business. I would also like to thank our doctors, nurses, and all employees for their hard work and dedication in helping to make BDMS a success. While the goal of medical sustainability is a challenging one, especially in the Thai healthcare industry, BDMS will continue to innovate and develop new and better ways to serve our customers and society.

Miss Poramaporn Prasarttong-Osoth,

M.D., FRCS (Glas)

Chairperson of Executive Committee and President

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