PACIFIC HEALTHCARE HOLDINGS LTD. 27 April 2015
Care, Compassion & Medical Excellence...
1. Statutory Financial Results
o Improved financial performance and continued
progress
2. Strategic turnaround
o Focus on medical services and eldercare in
Singapore
o To dispose /close facilities and overseas operations
o Target profitable "on-going" businesses
3. SGX watch list
4. AOB
Care, Compassion & Medical Excellence...
Steady revenue
Reduced group expenses by
5%, coming from across the
board
o Consumables (-8%)
o Staff (-4%)
o Other expenses (-9%)
o Depreciation (-15%)
Improvement in Group pretax loss to S$3.7m. Represents an improvement of 38% and 68% (without and with inclusion of exceptional gain respectively) vs FY2013
Improvement by 71% in Attributable to company owners in FY2014
Care, Compassion & Medical Excellence...
Operating cash flow
o Smaller negative run
rate
o Turns positive after sale /closure of facilities and overseas operations
Nursing homes provide positive cashflow to group
To finalise and quantify funding requirements and plans for the "next phase" of growth that may include a clinical chain roll up /roll out
Care, Compassion & Medical Excellence...
Reduction in cash balance from S$4.1m to S$2.7m due to negative run rate
Increased trade receivables because of NH subvention scheme from MOH / AIC
Sharp reduction in fixed assets from proposed disposals of facilities
The proposed disposal of the facilities and full year contribution from the profitable nursing homes will lead to strengthened Group working capital and balance sheet
Care, Compassion & Medical Excellence...
Highlights of Turnaround Plan
o Focus on medical services and eldercare in Singapore
o To dispose /close loss-making units (Imaging, Day Surgery, Jakarta)
o Space optimization - propose to:
• Give up two floors on L7 and L12
• Fit our 40 Drs onto 2 floors at L19 and L20
• Reduce rental by >50% from 50,000 sf to 23,000 sf
• Raise revenue intensity (on psf basis)
• Optimise clinical and non-clinical staff ratios via centralized functions
Network of spokes /feeders
o Opened 2 Senior Activity Centres - Woodlands & Punggol Emerald
o To open 2nd Renal Dialysis centre in mid-May 2015
New Sources of Revenue
o Nursing Homes
o Renal Dialysis
o Plan for future Clinical Network Chain for GP Doctors and GP Aesthetics
Care, Compassion & Medical Excellence...
FY2010 | FY2011 | FY2012 | FY2013 | FY2014 | |
Gross Revenue | 80,293 | 68,953 | 55,591 | 53,462 | 52,908 |
Pretax Profit /(Loss) before exceptional items | (10,174) | (12,301) | (11,326) | (10,809) | (6,673) |
Pretax Profit /(Loss) reported | (13,174) | (23,634) | (11,326) | (11,432) | (3,681) |
Care, Compassion & Medical Excellence...
Imaging
o Sale to Royal Medical & Imaging
• Signed SPA on 2 Jan 2015
• Long-stop date 1 April
• Transaction cancelled
o In current negotiations with several other parties to sell
Day Surgery
o Sale to Straitsworld Advisory
• Signed SPA on 16 Jan 2015
• Long-stop date 30 April 2015
Jakarta
o Sale to Straitsworld Advisory
• Signed SPA on 16 Jan 2015
• Long-stop date 30 April 2015
Care, Compassion & Medical Excellence...
24 month anniversary on 4 June 2015
Requirements for automatic extension:
o (i) 2 consecutive quarters of pretax profits and
o (ii) S$40m market capitalisation for 120 days
To apply to SGX for extension on watch list
Care, Compassion & Medical Excellence...
THANK YOUCare, Compassion & Medical Excellence...
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