CHC Healthcare Group · TWSE:4164
CHC Healthcare — FY2017 Earnings Presentation
39 slides from CHC Healthcare's earnings presentation, Apr 11, 2018
Slide 1: Performance Presentation for Biotechnology and Medical Care Industry
Performance Presentation for Biotechnology and Medical Care Industry (2018.04.11) 4164 TT
Slide 2: Disclaimer
Disclaimer • The information contained in this confidential document ("Presentation") has been prepared by CHC Healthcare Group (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment. • While the information contained herein has been prepa
Slide 3: Company Overview, Operational Results, Future Guidance, Q&A
Company Operational Future Q&A Overview Results Guidance 3
Slide 4: Company Overview
Company Operational Future Q&A Overview Results Guidance 4
Slide 5: Company Introduction
Company Introduction • Name ： CHC Healthcare Group (4164 TT) • Date of Establish ： 2009/11/27 (First subsidiary, Chiu Ho Instruments & Reagent, was founded in 1977) • President ： Mr. Pei-Lin, Lee • Headquarters ： Taipei • Branches ： Taichung, Kaohsiung, Beijing, Guangzhou & Jakarta • Major Business
Slide 6: Company Milestones
Company Milestones 1977 Founded Chiu Ho Instruments & Reagent Co., Ltd Holding “2017 International Elderly Care Industry Leaders 2017 Forum” IBA first official revenue sharing contract signed in Taiwan 1985 Introduced radiotherapy equipment IBA first official direct selling contract signed in Taiwan
Slide 7: Members of BoD & Functional Committees
Members of BoD & Functional Committees Director Independent Directors Pei-Lin, Lee Audit Committee President / Representative of a Juristic Person Director Compensation Committee Tien-Ying, Lee Gui-Duan, Chen Independent Director Vice President CPA, EnWise CPAs & Co. Chun-Shung, Huang Chang-Jian, Ho
Slide 8: Solid Partnership with Top Global Brands
Solid Partnership with Top Global Brands Radiation Oncology Medical Imaging Ophthalmology & Neuroscience 8
Slide 9: Full Service Solution Provider "TurnKey Solutions"
Full Service Solution Provider “TurnKey Solutions” Manufacturer Technical & Service Product Strength Strength Top Global Brands Service Team Certified CHC Healthcare Group • Radiation Oncology by Manufacturers • Neuroscience Revenue Technical ．Site Planning Sharing Direct Selling • Ophthalmology Par
Slide 10: Professional Team
Professional Team Goung-Yu, Chen General Manager Yee-Min, Jen Chief Executive Officer Great China Oncology Business Group (Sales Director, GE Healthcare) (Director, Dept. of Radiation Oncology, Tri-Service General Hospital) Ming-Ta, Wen Vice President Chia-Ming, Wu Assistant Vice President Oncology
Slide 11: Operational Results
Company Operational Future Q&A Overview Results Guidance 11
Slide 12: Annual Results
Annual Results 2,400,000 2,200,000 2016 2017 2,000,000 Operating Revenue 2,205,206 2,117,116 1,800,000 Gross Profit 619,611 688,653 1,600,000 Gross Margin(%) 28% 33% (NT$ thousand) 1,400,000 Net Operating Income 308,155 352,875 1,200,000 OP Margin (%) 14% 17% 1,000,000 2016 Annual 2017 Annual Net Pr
Slide 13: Product Mix
Product Mix Service Service Revenue Revenue 13% Sales 9% Revenue Sales 38% Revenue Revenue Sharing 49% 42% Revenue Sharing 49% 2016 Annual Value-Added Business Model 2017 Annual 13
Slide 14: Monthly Sales
Monthly Sales 300,000 250,000 (NT$ thousand) 200,000 150,000 2017 2018 100,000 50,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2017 2018 YoY 2017 2018 YoY Jan 110,226 141,057 27.97% Jul Feb 163,062 105,849 -35.09% Aug Mar Sep Apr Oct May Nov Jun Dec (NT$ thousand) YTD 273,288 246,906 -9
Slide 15: Future Guidance
Company Operational Future Q&A Overview Results Guidance 15
Slide 16: Future Guidance
Future Guidance • Introduce High-Tech Product & Precise Medicine • Medical Management Service Output to Overseas • Enter Elderly Care Market with New Perspective 16
Slide 17: Introduce High-Tech Product & Precise Medicine
Introduce High-Tech Product & Precise Medicine IBA Proton Therapy Business Model for Both Direct Selling & Revenue Sharing 17
Slide 18: Global Proton Therapy Capacity Gap Today
Introduce High-Tech Product & Precise Medicine < Global Proton Therapy Capacity Gap Today > Number of PT rooms sold by the end of 2016, 250 of which 191 in operation Taiwan 2,502 Numbers of PT rooms needed Population by the end of 2015 23,492,074 709,995 PT potential cases/year New diagnosed cancer
Slide 19: Estimation of RT & PT Rooms Needed by 2035
Introduce High-Tech Product & Precise Medicine < Estimation of RT & PT rooms needed by 2035 > 25000 20000 15000 (Room) RT Rooms 10000 PT Rooms 5000 0 *Source: IBA 2015 2035 19
Slide 20: Introduce High-Tech Product & Precise Medicine
Introduce High-Tech Product & Precise Medicine 20
Slide 21: IBA - Unrivaled Experience
Introduce High-Tech Product & Precise Medicine IBA - Unrivaled Experience 30+ 40+ 50,000+ 60%+ YEARS OF EXPERIENCE PARTNER INSTITUTIONS PATIENTS TREATED PATIENTS TREATED BY IBA 21
Slide 22: Proton Design Flexibility
Introduce High-Tech Product & Precise Medicine < Proton Design Flexibility > ProteusPLUS ProteusONE 1,800m2 300 m2 22
Slide 23: Pencil Beam Scanning by IBA
Introduce High-Tech Product & Precise Medicine < Pencil Beam Scanning by IBA > 23
Slide 24: Premium IOL
Introduce High-Tech Product & Precise Medicine < Premium IOL > 24
Slide 25: G-free Technology - Guaranteed 100% Glistening-Free
Introduce High-Tech Product & Precise Medicine < G-free® Technology - Guaranteed 100% Glistening-Free > PhysIOL G-free® Hydrophobic IOL with Glistenings 25
Slide 26: Introduce High-Tech Product & Precise Medicine
Introduce High-Tech Product & Precise Medicine 26
Slide 27: MR-Linac
Introduce High-Tech Product & Precise Medicine < MR-Linac > Soft Tissue Imaging with Diagnostic Quality + HD Dynamic Radiosurgery 27
Slide 28: Elekta - Unity
Introduce High-Tech Product & Precise Medicine < Elekta - Unity > 28
Slide 29: Present Revenue Sharing Partnership
Medical Management Service Output to Overseas < Present Revenue Sharing Partnership > Taiwan China Indonesia 29
Slide 30: Medical Management Service Output to Overseas
Medical Management Service Output to Overseas Hospital over 300 Beds Taiwan 136 X Hospital in Taiwan (2016) *Source: MOHW Around 1,250 Beds Revenue for Radiation Oncology Hospital over 500 Beds Department in 2017 China NT$ 224 million 3,060 (2015) *Source: National Health Commission of the PRC 30
Slide 31: Medical Management Service Output to Overseas
Medical Management Service Output to Overseas Chenzhou NO.1 LiXian People’s Hospital People’s Hospital 3,581 Beds 1,500 Beds Zhejiang Mayapada Hospital Xiaoshan Hospital 485 Beds 2,400 Beds 31
Slide 32: Partnership with Leading Manufacturer in China: Neusoft
Medical Management Service Output to Overseas < Partnership with Leading Manufacturer of Medical Equipment & Service in China > Neusoft Corporation (SHA: 600718) • Date of Establish: 1993/06/07 • Chairman & CEO: Jiren Liu • Headquarters: Shenyang, China • Major Business: Providing industry solutions
Slide 33: Medical Management Service Output to Overseas
Medical Management Service Output to Overseas Operation Division Consulting Management Hospital Management Equipment Provider 33
Slide 34: Enter Elderly Care Market with New Perspective
Enter Elderly Care Market with New Perspective 34
Slide 35: Enter Elderly Care Market with New Perspective
Enter Elderly Care Market with New Perspective Year when ageing status changed Speed of population ageing (Year) Ageing Society Aged Society Super-Aged society 7% to 14% 14% to 20% (7%) (14%) (20%) Taiwan 1993 2018(e) 2026(e) 25(e) 8(e) Japan 1970 1994 2005 24 11 South Korea 1999 2018(e) 2026(e) 19(
Slide 36: Estimation of Demand for Elderly Care
Enter Elderly Care Market with New Perspective Estimation of Demand for Elderly Care Cost for Elderly Care Total Estimate Amount 800,000 618,093 662,611 704,999 749,595 Item Description 597,379 640,211 683,144 727,454 (NT$ thousand) 700,000 Medical Equipment One-time 600,000 Assistive products 50~20
Slide 37: High-End Brand & Elder-Friendly Design
Enter Elderly Care Market with New Perspective High-End Brand & Elder-Friendly Design 37
Slide 38: Company Overview, Results, Guidance, Q&A
Company Operational Future Overview Results Guidance Q&A 38
Slide 39: Thank you
Thank you 39