Bangkok Dusit Medical Services : Analyst Presentation 4Q2023 Results

4Q23 & 2023 Analyst Presentation

5 March 2024

1

Agenda

4Q23 & 2023 Summary

Company Update

BDMS Strategic Priority

Our Network Hospital - Group 1

Operational Statistics

Financial Highlights

2

4Q23 & 2023 SUMMARY

3

4Q23 Operational and Financial Summary

4Q23 Highlights

		4Q23
		% Chg	% to
			Revenue
Operating income	12%
		THB 26,726 mm
Hospital revenue	12%
		THB 25,379 mm
Breakdown by nationality
▪	Thai	10%	72%
	Thai Non COVID-19	14%
▪	International	18%	28%

Profitability and Ratio

(THB mm)	4Q23	4Q22	Chg. (yoy)
EBITDA	6,649	5,641	18%
EBITDA margin	24.9%	23.7%
EBIT	5,238	4,199	25%
EBIT margin	19.6%	17.6%
Net profit	3,952	3,113	27%
Net profit margin	14.8%	13.1%

Remark: Margin was calculated as a percentage of operating income

Breakdown by location
▪	Bangkok & Vicinity	12%	56%
▪	Outside Bangkok	13%	44%
Breakdown by type of patients
▪	Outpatients	11%	48%
▪	Inpatients	14%	52%

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

Hospital +12%

Revenue

Growth mainly from inter (recovery of fly-in patients) and Thai patient revenue

NPAT

+27%

• Recovery of Thai and Inter patients
• Good financial management resulting in an increase in interest income and a decrease in interest expense

- All operational statistics are from BDMS management report

4

2023 Operational and Financial Summary - Revenue Reaching A Hundred Billion Baht

2023 Highlights

	2023
	% Chg	% to
		Revenue
Operating income	10%
	THB 102,110 mm
Hospital revenue	10%
	THB 97,077 mm
Breakdown by nationality
▪ Thai	6%	73%
Thai Non COVID-19	22%

Profitability and Ratio

(THB mm)	2023	2022	Chg. (yoy)
EBITDA	24,740	22,933	8%
EBITDA margin	24.2%	24.7%
EBIT	19,199	17,113	12%
EBIT margin	18.8%	18.4%
Net profit	14,375	12,606	14%
Net profit margin	14.1%	13.6%

Remark: Margin was calculated as a percentage of operating income

▪	International	23%	27%
Breakdown by location
▪	Bangkok & Vicinity	8%	56%
▪	Outside Bangkok	12%	44%
Breakdown by type of patients
▪	Outpatients	11%	48%
▪	Inpatients	9%	52%

Hospital	+10%
Revenue

• Growth of Center of Excellence
• Increase in inter patients
• Growth of hospital outside BKK from medical tourist rebound in tourist destinations

NPAT

+14%

• Recovery of Thai and Inter patients
• High occupancy rate
• Good cost containment
• Lower depreciation
• Good financial management
• Positive impact from additional stake in Samitivej Public Company Limited

5

Recap 2023: Good Thai and Inter Patient Recovery

Good Recovery Trend; Well Above Pre-COVID Level

Thai- Non Covid Rev		Inter patient Rev

		Total	11%	22%
vs. Pre- COVID
40%				27%
20%	-7%	-13%	4%
0%
		11%
-20%
		-10%
-40%
-60%	-44%	-47%
-80%
	2020	2021	2022	2023

Strong Growth at Center of Excellence (COE)

Unit: 2023 (Growth YoY)

+11%

+10%+7%

Hospital Revenue

COE

Non COE

• Good revenue growth from pent-up demand and return of high intensity cases
• Key growth of COE in 2023 were mainly from hospitals in upcountry in top tourist destinations i.e. Phuket, Chiangmai, Pattaya
• Higher seasonal epidemics (i.e. Dengue Fever) and normal flu (RSV, influenza) helped increase Thai patient volume in 2023

6

2024E Outlook

Hospital Revenues Trend

Growth YoY

+24%

+10%	+10%	+11%

2021

2022

2023

QTD 2024*

Note: * Jan - 21 Feb 2024

Key of International Patient Growth

Growth YoY					2023		Jan-24
45%43%	43%
			28%	25%	23%
		20%	19%
			15%
				1%
	China	Middle East	Europe	CLMV		Total Inter

Key Drivers & Target

• Key drivers are
• • Thai patients:
  • • Higher intensity cases from COEs
    • Expanding insurance and social security patients
    • Bed expansion in both Bangkok and upcountry
  • International patients:
  • • Positive patient volume come from China, Middle East and Europe

7

Key Growth Drivers and Target for the Next 3 Years (2024-2026E)

Key Growth

REVENUE

3 yrs CAGR growth target of ~10% p.a.

Key Drivers

Thai patients

• Aging population
• Center of Excellence (COE) (increase medical capability at existing 14 COEs)
• Social security (target 1m registered members by 2025 )
• Private health insurance (strengthen relationship domestic & inter insurance)
  International patients
• Key growth are Middle East, CLMV, China and Europe
• Boosting international patients at our COEs in top tourist destinations

BED CAPACITY EXPANSION

9,000+ Structured beds by 2026

OCCUPANCY RATE

target of ~75%

EBITDA MARGIN

target of ~25%

• Bed expansion at new/existing hospitals
• Focus on upcountry expansion where there is high demand
• Adding cancer facilities outside Bangkok
• Increase patient volumes (value-based pricing, increasing 3rd party payors)
• Proactive strategies to bring in new patients (preventive care, health ecosystem)
• Improving revenue intensity & case mix index (COE & Fly-in patients)
• Increasing economies of scale & operational efficiency

8

COMPANY UPDATE

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