CONFIDENTIAL PT Prodia Widyahusada...

CONFIDENTIAL

PT Prodia Widyahusada Tbk 2016 FULL YEAR RESULTS UPDATE

20 March 2017

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3

INVESTMENT HIGHLIGHTS 1

2016 BUSINESS UPDATE 2

FINANCIAL HIGHLIGHTS 4

2017 GROWTH STRATEGIES 3

Agenda

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103.6 334.4

9,863.0

Significant Long-term Growth Potential

Total Healthcare Expenditure per Capita (2015E)

1. Prodia is at the Forefront of a Significant Indonesian Healthcare Opportunity

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Source: Frost & Sullivan Analysis (2016), Economist Intelligence Unit. Note: (1) Jaminan Kesehatan Nasional (JKN) is Indonesia's national healthcare insurance program, which is implemented by the social security agency Badan Penyelenggara Jaminan

Sosial Kesehatan (BPJS). (2) Average of select comparable South-East Asian countries (Thailand, Vietnam and Malaysia). (3) As of the end of 2015.

Indonesia Healthcare Market – Significant Long-term Growth Potential

(In USD)

Total Population (2015E) Clinical Lab Test Spending per Capita (2015E)

5.1 16.9

241.4

63.8

255.5

321.4

Significant “Catch Up” Potential

Rising affordability and implementation of JKN(1)

Transformational healthcare sector

Strong GDP growth

Rapidly expanding middle class

A Population of 256 million – 4th Largest Worldwide (3)

Total Indonesia Healthcare Expenditure

(In USD bn)

(In USD)

25.4 26.5

27.6 29.0

2014 2015E 2016F 2017F

(2) (2) (2)

(In millions)

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27 27 25

26 28

29

2011 2012 2013 2014 2015E 2016F 2017F

Indonesian Healthcare Market is Growing

2. Significant Growth Potential for Private Laboratories in Indonesia

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Source: Frost & Sullivan Analysis (2016).

Private Laboratory Testing Market is Growing Faster

386 435

492

558

615

706

817

2011 2012 2013 2014 2015E 2016F 2017F

(Market size by revenue; In USD bn)

(Market size by revenue; In USD mn)

13A-15E CAGR (0.3%)

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Source: Frost & Sullivan Analysis (2016).

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3. Largest Owned and Operated Nationwide Labs Network

Note: Total Outlet as of 30 June 2016.

Clinical Labs

POC Outlet

Hospital Lab

15 2 1

Clinical

Labs

Specialty

Clinic

POC

Outlet

Hospital

Lab

31 1 30 2

Clinical

Labs

PHC

Clinic

POC

Outlet

7 1 6

III

II

I

IV

Clinical

Labs

POC

Outlet

Hospital

Lab

20 23 1

V

Clinical

Labs

POC

Outlet

Hospital

Lab

22 22 1

VI Clinical

Labs POC

Outlet Hospital

Lab

16 15 1

VII

Clinical

Labs

POC

Outlet

5 1

VIII

Clinical Labs

POC Outlet

Hospital Lab

12 15 1

I II VII

VIII

III IV V

VI

Clinical Labs

and PHC 129

POC Outlets 114

Hospital Labs 7

Specialty Clinic 1

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5. Comprehensive Service Offering – Target Multiple Customer Segments confidential

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7. Senior Leadership and Management Team

• Experienced, Professional Management Team with a Track Record in Delivering Superior Growth and Innovation

Dr. Andi Wijaya, MBA

Co-Founder and Chairman

Drs. Gunawan Prawiro Soeharto

Co-Founder and Commissioner

Dr. Endang Hoyaranda

Commissioner

Dr. Dewi Muliaty, M.Si

President Director

Liana Kuswandi, M.Fin

Finance Director

Dr. Indriyanti Rafi Sukmawati, M.Si

Marketing Director

Dr. Andri Hidayat, M.Kes

Operation Director

21 Years of Experience




Diagnostic Services Company of the Year 2015

- Frost & Sullivan

Best Brand Gold 2015

- IBBA Awards




Tetty Hendrawati M.Si Independent Director


Scott Andrew Merrillees

Independent Commissioner

Joseph F. P, Luhukay

Independent Commissioner



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2016 Outlets Development

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Location

2016 H1 Number of

outlets

Clinical Labs & PHCs

Specialty Clinics Point-of-Care (POC) Outlets

Hospital Labs

New Outlets 2016 H2

Total Outlets

Description

Equipped to conduct

and process certain

routine tests

Specialized facilities

focusing on particular

fields of medicine or

specific patient types

Consists of both POC

Centers and POC

Collection Centers

Operate hospital labs

for private hospitals that

lack the resources,

know-how or scale to

operate onsite clinical

laboratories efficiently Some labs offer non-

lab test (X-ray, Imaging,

etc.)

Equipped with trained

physicians and

specialists in pediatric

testing

Can take specimen at

doctor’s clinics and no

need to go to clinical

labs

106 cities across

Indonesia

Prodia Children’s Health

Centre and Prodia

Women,s Health Centre in

Jakarta

Within doctor's clinics

across Indonesia

Located in private

hospitals

128 1 114 7

1+1 PHC** 1 4 2

129 + 1PHC 2 118 9

Total Outlets: 259 vs 250 in 2015 **Upgrade Clinical Labs to PHC Clinics

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441 469 503 547

2013 2014 2015 2016

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Note: The above are derived from Prodia’s standalone (Parent-only) financials, which exclude the contributions of non-core subsidiaries which were spun-off in 2015, reflecting the operations of Prodia’s core business. Prodia does not have any other subsidiaries.

(1) EBITDA refers to income before depreciation, provision of future employee benefits, allowance for impairment in value, corporate income taxes and other expenses and/or income (consisting primarily of gain/loss of fixed assets sale, income from insurance claim and interest on bank loans).

Revenue per Visit Number of Visits

(In million)

2,236 2,305 2,383 2,482

2013 2014 2015 2016

2016 FULL YEAR RESULTS

(In ‘000)

Revenue per visit increased driven by

Esoteric testing and new type of testing with

higher price

Launched 11 testing types (Apo E Genotype,

BCR-ABL p210 and 5 labs testing packages

Number of visit increased driven by walk in

customer (5.9%) and doctors referral (5.4%)

New outlets development

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Doctor Referrals

33%

External Referrals

17%

Corporate Clients

16%

Walk-in Customers

34%

Individual walk-in

patients

Out-of-pocket cash

payment

Patients referred by

doctors

Out-of-pocket cash

payment

Primarily samples

referred by

hospitals and labs

Funded by referring

institutions on credit

Corporate check-ups

Funded by corporates

on credit

Diversified Customer Base (2016 Revenue Split) One-Stop Service Platform for Customers

2016 Customer Segments & Testing Types

Complementary Service Package

General Medical Check-Up Services

Pre and post

test doctor

consultation

services.

Home

collection

services.

Specialty

Clinics

Specialized

clinical facilities

tailored to

specific

customer

needs.

Include children

& women.

Routine 90%

(~214 tests)

Esoteric 3. 3%

(~130 tests)

Non-Laboratory

6.7%

14.59 million

tests performed

In 2016

Comprehensive Test Offering (2016 Test Volume Breakdown by Type of Service)

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Reference

Lab Services

Includes both

routine and

esoteric testing.

Employs

advanced

testing

equipment .

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2016 MOST RECOGNIZED Clinical Lab Brand for Prodia

Top Brand Award

2009 - 2016

Indonesia Original Brand (IOB )

2012 - 2016

Indonesia Best Brand Award (IBBA)

2013 - 2016

Corporate Image Award (IMAC)

2012 - 2016

Master Service Award

2012 - 2016

Service Quality Award

2013,2015 - 2016 2015- 2016

2012 - 2016

2016 2016

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2016 FULL YEAR RESULTS

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Financial 2016

Revenue (IDR Bn) 1,358.66 ▲ 13.44%

EBITDA (IDR Bn) 209.07 ▲ 19.31%

EBITDA Margin 15.38% ▲ 76 bps

Net Income (IDR Bn) 88.13 ▲ 49.32%

• No of visits (mn) 2.48 ▲ 4.19%

• Revenue per visit (IDR 000) 547 ▲ 8.89%

• New Testing Types 11

New Outlets 2016

Clinical Lab 1

Speciality Clinic 1

POCs 4

Hospital Labs 2

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INVESTMENT HIGHLIGHT 1


FINANCIAL HIGHLIGHT 4


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Growth Strategies

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Near-term

3 Enhance internal operating efficiency

2 Upgrade existing clinical laboratories to provide wider range of tests and

services and increase volume

1 Expand our presence and grow our network of outlets in both existing and new

markets in Indonesia

4 Focus on providing quality diagnostic and related healthcare tests and services

Focus on the development of next-generation diagnostic technologies for precision medicine

1

Long-term

A

B

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Enhance Operating Efficiency

Near-Term Growth Plan

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Prodia’s Network Expansion Plan in Five Years

Focus on Quality

3

4

4 regional reference labs(1)

Up to 33 additional clinical labs over next five

years

Up to 20 new POC collection centers per year

13 new specialty clinics over next five years(2)

Upgrade up to 39 additional clinical labs to

PHC Clinics(3)

Note: (1) Two regional reference labs already opened in 2016 (2) Two specialty clinics already opened in 2015 and 2016 (3) Four PHC Clinics already added at clinical labs in 2016

5 new hospital labs per year

Expand Network of Outlets Upgrade Clinical Labs

1 2

24 Clinical Lab Improvements

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Leader in Next Generation Technology (Long-term Strategy)

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Diversified Clinical Diagnostics Platform +

Scientific Talent

Molecular Diagnostics

The Concept of Precision Medicine

Chromatography-Mass Spectrometry

Global initiative to move towards personalized treatment and prevention

Leverages genomics, proteomics, and metabolomics analysis

Key to the successful offering of precision medicine is the availability of diagnostic information

Advanced Pathology Lab

Laboratory Platforms Innovation

Immunology (Flow Cytometry) Lab

Targeted Therapy Personalized Treatment and

Prevention

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Revenue and EBITDA increased more than average growth over previous three years

986 1,081

1,198

1,358

2013 2014 2015 2016

132 148

175

209

13.4% 13.7% 14.6%

15.4%

2013 2014 2015 2016

Revenue EBITDA

In IDR bn In IDR bn

2016 Revenue increase by 13.44% driven by external referral (15.16%) Walk in

customer (13.74%), Doctors Referral (13.60%) and Corporate Clients (10.75%)

EBITDA increased driven by decreased of cost of employee benefit by 11%

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Improving Gross Profit and Net Income

687

793

2015 2016

Gross Profit

59

88

2015 2016

Net Income

Gross Profit Net Income

In IDR bn In IDR bn

The improvement of Gross Profit is driven by reducing of direct

cost of raw materials

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469 506 571 637

31 33 36

39 501 539 607

50.8% 49.9% 50.6% 49.7%

2013A 2014A 2015A 2016 FY Column2

Marketing Expenses General and Administrative Expenses (G&A)Operating Expense as % of Total Revenue

337 382 429 475

47 72

82 90

384 454

511 565

38.9%

42.0%

42.7%

41.6%

2013A 2014A 2015A 2016 FY Column2Indirect Cost Direct Cost Cost of Revenues as % of Total Revenue

Key Commentary Cost of Revenues

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Cost Structure

(In IDR bn)

Operating Expenses

(In IDR bn)

Cost of revenues decreased

due to reduction of direct costs

from 35.8 % to 35% driven

by a reduction of cost of raw

materials

G&A expense as % of

revenue showed an

improvement of 0.7% driven

by a reduction of employee

salary and allowances

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Capital Expenditure

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Highlights Capital Expenditure

(In IDR bn)

Capital expenditure generally

relates to the costs associated

with opening new clinical

laboratories

Capital expenditure in 2016

was more due to the cost of

renovation, and ERP-Sispro

XSIS software implementation

The total capital expenditures

for 2017 are expected to be

IDR 400-450bn

39.0 44.7 48.5

61.4

25.7 6.2

273.3

15.8 64.6

50.9

321.8

77.2

6.6% 4.7%

26.9%

11.9%

2013 2014 2015 2016

Land and Building

Other

Total Capital Expenditure as % of Revenue

Note: The above are derived from Prodia’s standalone (Parent-only) financials, which exclude the contributions of non-core subsidiaries which were spun-off in 2015, reflecting the operations of Prodia’s core business. Prodia does not have any other subsidiaries.

(1) Other includes Vehicle, Office Equipment, Electronics, Other Office Equipment, Lab Equipment, Non-Lab Equipment and Software.

(1)

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Equity and Assets Ratio

2016 2015

Debt to Assets Equity Ratio (DAR) 0.31 0.78 ▼

Debt to Equity Ratio (DER) 0.44 3.57 ▼

Return On Assets (ROA) 3.81 11.51 ▼

Return On Equity (ROE) 5.48 52.64 ▼

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Financial Summary

FY 2015 FY 2016

Revenue 1,197,727 1,358,664

Growth 8.90% 13.44%

Gross Profit 686,534 793,380

Margin 57.32% 58.39%

Earning Before Tax 76,990 120,201

Margin 6.43% 8.85%

Net Income 59,025 88,135

Margin 4.93% 6.49%

Growth 83.60% 49.30%

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Share Holder

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Note: (1) By revenue and lab network in Indonesia in 2015.

PT. Prodia Utama Bio Majesty Pte. Ltd

57% 18%

No.1 clinical lab chain in Indonesia(1)

Premium clinical laboratory brand

Dominant and industry pioneer

Public

PT. PRODIA WIDYAHUSADA TBK

Nationwide Outlet Network across Indonesia

25.0%

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THANKYOU

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