ISEC Healthcare Ltd · SGX:40T
ISEC Healthcare — FY2014 Earnings Presentation
29 slides from ISEC Healthcare's earnings presentation, February 2015
Slide 1: FY2014 Financial Results Presentation
FY2014 Financial Results Presentation February 2015 Page 0
Slide 2: Disclaimer
Disclaimer ISEC Healthcare Ltd. (the “Company”) was listed on Catalist of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 28 October 2014. The initial public offering of the Company was sponsored by PrimePartners Corporate Finance Pte. Ltd. (the “Sponsor”). This presentation has
Slide 3: Table of Content
Table of Content Business Overview Industry Overview FY2014 Financial Highlights Use of Proceeds Corporate Developments Page 2
Slide 4: Business Overview
Business Overview Ger _—Sti eC ee
Slide 5: Business Overview
Business Overview About Us Group Structure & Clinic Location A comprehensive medical eye care service ISEC Healthcare Ltd provider, with ambulatory surgical centres in Malaysia (Kuala Lumpur & Penang) and Singapore 100% 100% 100% (Gleneagles Hospital & Mount Elizabeth Hospital, ISEC Sdn Bhd Internat
Slide 6: Industry Overview
Industry Overview Page 5
Slide 7: Industry Overview: Key Drivers for Private Ophthalmology
Industry Overview Key Drivers for Private Ophthalmology AGEING POPULATION with large elderly 25.9% of population in Malaysia above 40 years old in 2013, expected to patient group suffering from cataract, grow at CAGR of 1.7% from 2013 to 2018 glaucoma, AMD, dry eyes or vitreoretinal diseases as thes
Slide 8: Industry Overview: Key Drivers (cont'd)
Industry Overview Key Drivers for Private Ophthalmology (cont’d) Medical tourism based healthcare expenditure forecast to grow at 26.7% GOVERNMENT SUPPORT IN PROMOTING CAGR from 2009 to 2018 in Malaysia MEDICAL TOURISM leading to generation of additional demand for medical services Medical tourism b
Slide 9: FY2014 Financial Highlights
FY2014 Financial Highlights Financial year ended 31 December 2014 Page 8
Slide 10: Basis of Preparation of FY2014 Financial Information
Basis of Preparation of FY2014 Financial Information • ISEC Healthcare Ltd. (“the Company”) was incorporated on 2 January 2014 as a private limited company • International Specialist Eye Centre Pte. Ltd. (“ISEC Singapore”) was incorporated on 2 January 2014. On 30 April 2014, ISEC Singapore was tran
Slide 11: Basis of Preparation of FY2014 Financial Information (Cont'd)
Basis of Preparation of FY2014 Financial Information (Cont’d) 2013 2014 YTD Jan-Mar Apr-June Jul to Dec ISEC Group ISEC Mal ISEC Mal + ISEC Mal + ISEC Sing + ISEC Eye results ISEC Sing Description ISEC Sing ISEC Sing Acquisition of was started ISEC Eye on 26 transferred operations in Sept 2014 to IS
Slide 12: Basis of Preparation of FY2014 Financial Information (Cont'd)
Basis of Preparation of FY2014 Financial Information (Cont’d) Summary: FY2013 figures only consist of financial results of ISEC Sdn. Bhd. and its subsidiaries in Malaysia FY2014 figures consist of: a) Financial results of ISEC Sdn. Bhd. and its subsidiaries in Malaysia and b) Financial results of IS
Slide 13: Revenue
Revenue SGD’mil 25 22.0 20 17.5 15 10 7.1 5 4.2 0 4Q2013 4Q2014 FY2013 FY2014 FY2014 vs FY2013 revenue was higher mainly due to higher revenue recorded from Malaysia operations of S$20.3 million (FY2013: S$17.5 million) as a result of upward revision in services pricing and increase in the number of
Slide 14: Gross Profit
Gross Profit SGD’mil 12 10 9.6 8 6.8 6 4 3.4 2 1.6 0 4Q2013 4Q2014 FY2013 FY2014 GP Margin 38.6% 47.9% 38.9% 43.6% GP Margin in FY2014 vs FY2013 was higher mainly due to upward revision of services pricing in Malaysia and inclusion of results of ISEC Eye which was partially off-set by start up losse
Slide 15: Net Profit / (Loss)
Net Profit / (Loss) 4 3.4 3.5 SGD’mil 3 2.5 2.3 1.9 2 1.5 1.1 1 0.5 0.3 0 Q42013 Q42014 FY2013 FY2014 Q42014# FY2014* -0.5 (adjusted) (adjusted) -0.4 -1 Net 7.4% -5.6% 13.2% 8.6% 15.5% 15.9% Margin Please refer to Slide 15 on explanation notes Page 14
Slide 16: Net Profit / (Loss) (Cont'd)
Net Profit / (Loss) (Cont’d) Net Profit and Net Profit Margin was lower in FY2014 vs FY2013 mainly due to one off listing expenses of S$1.4 million expensed off, additional staff recruited to support the growing business activities of the Group, set-up costs and rental of premises of the new corpora
Slide 17: Malaysia Results in Ringgit Malaysia
Malaysia Results in Ringgit Malaysia RM’mil 60.0 15.9% 52.3 50.0 45.1 40.0 30.0 27.8% 22.5 20.0 17.6 61.7% 9.7 10.0 6.0 - Revenue Gross Profit Net Profit FY2013 FY2014 Revenue, gross profit and net profit have been on an upward trend in the last 2 financial years Page 16
Slide 18: Statement of Financial Position
Statement of Financial Position S$’000 31 December 2014 Key Assets Plant and equipment 4,285 Intangible assets^ 13,219 Trade and other receivables 2,569 Cash and cash equivalents 27,267 Key Liabilities Trade and other payables 2,498 Equity Shareholders equity 43,680 ^ - Arose from the acquisition of
Slide 19: Financial Ratios
Financial Ratios Per Share Data* (Singapore cents) 31 December 2014 Net Asset Value per share 9.53 Earnings per share 0.43 Proposed first and final dividend per share 0.11** Dividend payout^ 25.6% Financial Ratios Current ratio 9.37 Return on equity 4.35% Return on assets 3.95% * Based on post-IPO n
Slide 20: Basis of Preparation of Financial Information in Prospectus
Basis of Preparation of Financial Information in Prospectus The unaudited pro forma combined financial information of the Group for the financial years ended 31 December 2011, 2012, 2013, 1Q2013 and 1Q2014 in the Prospectus have been compiled based on: • Acquisition of ISEC Eye by the Company subseq
Slide 21: Revenue Pro Forma
Revenue Pro Forma SGD’mil 30 CAGR: 10.9% 25.4 25 22.3 20.6 20 18.6 15 10 5 0 FY2011 FY2012 FY2013 FY2014 FY2011 to FY2014 – increase in revenue was mainly due to increase in number of patients and upward revision in services pricing and number of patients covered under insurance policies from Malays
Slide 22: Revenue (breakdown by geographical locations) Pro Forma
Revenue (breakdown by geographical locations) Pro Forma SGD’mil 30 20% 25 22% 27% 20 26% 15 74% 73% 78% 80% 10 5 48.4% 0 FY2011 FY2012 FY2013 FY2014 Singapore 4.8 5.5 4.8 5.1 Malaysia 13.8 15.1 17.5 20.3 Page 21
Slide 23: Gross Profit Pro Forma
Gross Profit Pro Forma SGD’mil CAGR: 10.1% 14 12.8 12 11.5 10.7 10 9.6 8 6 4 2 0 FY2011 FY2012 FY2013 FY2014 GP Margin 51.4% 51.8% 51.5% 50.4% GP Margin - consistently above 50% Slight decrease in GP Margin despite increase in selling price in Malaysia was mainly due to losses in ISEC Singapore FY20
Slide 24: Gross Profit (breakdown by geographical locations) Pro Forma
Gross Profit (breakdown by geographical locations) Pro Forma SGD’mil14.0 12.0 32% 10.0 41% 8.0 48% 50% 6.0 4.0 52% 50% 59% 68% 68% 2.0 - FY2011 FY2012 FY2013 FY2014 Singapore 4.6 5.3 4.7 4.1 Malaysia 4.9 5.4 6.8 8.7 Page 23
Slide 25: Net Profit Pro Forma
Net Profit Pro Forma SGD’mil 7.0 6.0 6.0 5.7 5.7 5.0 4.7 4.5 4.0 3.0 2.0 1.0 - FY2011 FY2012 FY2013 FY2014 FY2014* (adjusted) NP Margin 25.0% 27.6% 25.3% 17.7% 23.6% FY2012 to FY2013 – net income was almost unchanged despite increase in revenue due to higher employee benefits and PPE written off as
Slide 26: Use of Proceeds & Corporate Developments
Use of Proceeds & Corporate Developments Page 25
Slide 27: Use of Proceeds
Use of Proceeds As at 25 February 2015 Amount Amount after Amount Use of proceeds allocated reallocation (N1) utilised Balance S$’000 S$’000 S$’000 S$’000 Business expansion in Asia Pacific region (including 13,800 14,100 - 14,100 Malaysia and Singapore) General and working capital 2,500 2,500 (2,39
Slide 28: Corporate Developments
Corporate Developments January 2015 Proposed incorporation of joint venture company, ISEC (Sibu) Sdn Bhd • ISEC Sdn. Bhd. shall hold 55% of the shares in ISEC (Sibu) Sdn. Bhd. • ISEC (Sibu) Sdn. Bhd. shall operate and administer an ophthalmology centre of excellence in the city of Sibu, State of Sar
Slide 29: Thank You
Thank You Page 28