Bangkok Dusit Medical Services : Analyst Presentation 3Q2023 Results

Analyst Presentation 3Q23 Results

17 November 2023

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Contents

3Q23 & 9M23 Summary

Company Update

Our Network Hospital - Group 5

Operational Statistics

Financial Highlights

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3Q23 & 9M23 SUMMARY

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3Q23 Operational and Financial Summary - Highest Ever Quarterly Revenue

3Q23 Highlights

		3Q23
		% Chg	% to
			Revenue
Operating income	11%
		THB 26,699 mm
Hospital revenue	12%
		THB 25,473 mm
Breakdown by nationality
▪	Thai	9%	74%
	Thai Non COVID-19	23%
▪	International	19%	26%
Breakdown by location
▪	Bangkok & Vicinity	10%	56%
▪	Outside Bangkok	13%	44%
Breakdown by type of patients
▪	Outpatients	11%	48%
▪	Inpatients	13%	52%

Remark: - Operating income is calculated from hospital revenue + revenue from sales of goods + other income

- All operational statistics are from BDMS management report

Profitability and Ratio

(THB mm)	3Q23	3Q22	Chg. (yoy)
EBITDA	6,594	5,999	10%
EBITDA margin	24.7%	25.0%
EBIT	5,200	4,545	14%
EBIT margin	19.5%	18.9%
Net profit	3,890	3,386	15%
Net profit margin	14.6%	14.1%

Remark: Margin was calculated as a percentage of operating income

Commentary

• Hospital revenue increased 12% YoY mainly from
• • Strong growth of international patients mainly from recovery of fly-in patients
  • Growth of Thai patients from demand recovery and seasonal epidemics
• NPAT increased 15% YoY partly due to good financial management resulting in an increase in interest income and decrease in interest expense

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9M23 Operational and Financial Summary

9M23 Highlights

		9M23
		% Chg	% to
			Revenue
Operating income	9%
		THB 71,698 mm
Hospital revenue	9%
		THB 75,385 mm
Breakdown by nationality
▪	Thai	3%	73%
	Thai Non COVID-19	25%
▪	International	26%	27%
Breakdown by location
▪	Bangkok & Vicinity	6%	56%
▪	Outside Bangkok	12%	44%
Breakdown by type of patients
▪	Outpatients	11%	48%
▪	Inpatients	6%	52%

Remark: - Operating income is calculated from hospital revenue + revenue from sales of goods + other income

- All operational statistics are from BDMS management report

Profitability and Ratio

(THB mm)	9M23	9M22	Chg. (yoy)
EBITDA	18,092	17,293	5%
EBITDA margin	24.0%	25.0%
EBIT	13,960	12,914	8%
EBIT margin	18.5%	18.7%
Net profit	10,424	9,493	10%
Net profit margin	13.8%	13.7%

Remark: Margin was calculated as a percentage of operating income

Commentary

• Hospital revenue increased 9% YoY mainly from
• • Recovery of international patients
  • Higher patient intensity at Center of Excellence
  • Thai non COVID-19 growth of 25% YoY
• EBITDA increased 5% YoY while NPAT increased 10% YoY mainly from patient recovery together with lower depreciation and decrease in non-controlling interests in Samitivej Public Company Limited ("SVH")

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Thai and International Patient Recovery - Better than Expected

Good Recovery Trend: Above Pre-COVID Level						Thai and International Patient Growth
vs. Pre-COVID						Unit: Growth (YoY)
40%													27%	38%
20%																			28%
0%																	23%	23%
																22%
												14%
-20%																19%

-40%-60%-80%

1Q20	3Q20	1Q21	3Q21	1Q22	3Q22	1Q23	3Q23	1Q23	2Q23	3Q23
		Thai- Non Covid Rev			Inter patient Rev				Thai- Non Covid Rev		Inter Patient Rev

• Good recovery of both Thai and inter patients, above pre-COVID level, supported by pent-up demand and high intensity cases at our Center of Excellence (CoE)
• Thai-nonCOVID revenues showed strong growth due to returning of patients and partly from seasonal epidemics i.e. RSV, Influenza and dengue fever
• Inter patient revenues were solid supported by good recovery from Middle East, Chinese & CLMV patients

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4Q23 Outlook and Revised Up 2023 Guidance

Hospital Revenues Trend

Inter		Thai
		+9% to +10%
		YoY

2019

2020

2021

2022

2023E

Key International Patient growth

Unit: Growth YoY				3Q23		Oct-23
41%		42% 38%
31%
	12%13%		19% 19%
Middle East	CLMV	China		Total Inter

Key Drivers & Target

• 4Q23 Outlook
• • Thai patients
  • • Strong growth nationwide from seasonal epidemics (RSV/ influenza) in Oct 2023
    • Solid growth from COE hospitals and social security hospitals (higher capitation rate)
  • Inter patients
  • • Positive trend from high season of fly-in patients and tourist rebound
• 2023 guidance
• • Hospital revenues to grow 9-10% YoY (revised up from 6-8%YoY previously)
  • EBITDA margin of ~24% (unchanged)

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COMPANY UPDATE

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Tris Rating

Affirmed Rating at "AA+" with Stable Outlook

	16 October 2023
Company rating	AA+
Senior unsecured debentures	AA+
Outlook	Stable

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Tris Rating affirmed the Company and senior unsecured debenture rating at "AA+" with Stable Outlook

The rating reflect the following factors:-

• BDMS's market position as the largest private hospital in Thailand, its extensive network of hospital and strong franchise of hospital brands
• BDMS's improved operating performance post-pandemics supported by strong revival of international patient revenues together with increasing in Thai patient revenues with higher complex diseases and aging society
• Profit margin to remain strong despite elevated costs by enhancing work efficiency and streamline processes through the integration of modern technology and rationalized expenses

▪ Strong balance sheet with ample liquidity over the next 3 years	9

Movenpick BDMS Wellness Resort

BDMS Connect Center

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BDMS Connect Center was opened on 30 October 2023

Facilities: Exhibition Hall / Ball Room / Function Rooms

We received the internationally recognized LEED GOLD and Fitwel

certification as a symbol of sustainability achievement and

leadership in the green building of the property

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