Mitra Keluarga Maintained Strong 1H16 Results with 14.5% Revenues Growth

Jakarta, July 29, 2016 PT Mitra Keluarga Karyasehat Tbk (Mitra Keluarga or the “Company”) announced the Company’s financial performance for the period ended June 30, 2016. Mitra Keluarga posted revenues of Rp1,261.4 billion or an increase of 14.5% over the same period in 2015. The growth was driven largely by patient volume increase. Inpatient days have been growing vastly at 17.5% from 198,020 days for the first half of 2015 to 232,678 days for the same period in 2016. The high inpatient volume this year has triggered a spike in the bed occupancy ratio which stood at 71.0% with a total operating bed capacity of 1,800 beds compared to that of last year of 65.1% bed occupancy ratio with a total operating bed capacity of 1,681 beds. The outpatient visits have been growing from 832,011 to 882,931 visits, reflecting a growth of 6.1% for the same period. The inpatient days and outpatient visits at the existing 10 hospitals have been growing by around 14.4% and 4.2%, respectively, whilst the two newer hospitals, namely Mitra Keluarga Kenjeran and Mitra Keluarga Kalideres have been positively contributing to the overall inpatient days and outpatient visits growth.

The revenue per inpatient days for the first half of 2016 was Rp3.565 million relatively flat compared to that of the same period in 2015 of Rp3.548 million due to the low intensity case mix. Revenue per outpatient visits has been growing over the same period by 2.2%, from Rp480,000 to Rp489,000.

Mitra Keluarga continued to enjoy EBITDA growth of 19.7% y-o-y for the first half of 2016, as the EBITDA margin expanded by 1.6% from 36.2% in June 2015 to 37.8% in June 2016 whilst Operating Profit grew by 17.6% over the same period from Rp343.1 billion to Rp403.6 billion. The operating profit margin expanded by around 0.9% from 31.1% in June 2015 to 32.0% in June 2016. The operating profit margin expansion was contributed by 2.7% margin expansion at the gross profit level, from 45.9% in the first half of 2015 to 48.6% in the first half of 2016, which was then diluted by higher operating expenses growth. The Company’s total salary expenses and depreciation have been growing y-o-y at 18.1% and 15.9%, respectively as of June 2016. “We have seen the impact of improved operating efficiency in our EBITDA margin expansion by first half 2016. We are confident that by end of 2016 our EBITDA growth will be around 18-20% y-o-y, up compared to our earlier guidance of 17-18% y-o-y,” said Ir. Rustiyan Oen, MBA. He added that the net profit has been growing by approximately 20.1% in the first half of 2016 compared to the first half of 2015, reflecting a net profit margin expansion of 1.4% from 29.2% to 30.6%.

Mitra Keluarga has booked higher interest income on the back of higher cash balance at the end of June 2016. The net financial income for the first half of 2016 was Rp83.5 billion which represents approximately 6.6% of the Company’s net revenue, increased from Rp64.6 billion for the same period of 2015. The Company has no bank loans or any other debt instruments, and with a net cash position amounting to Rp2,350.1 billion was recorded as June 30, 2016

Rustiyan explained that the Company’s intent to open another six hospitals through 2019 in Greater Jakarta and Surabaya, of which two hospitals shall be opened in 2017. We will also expedite in securing sites for our new hospitals as currently we own four land banks for our next five years expansion plan. Hopefully by end of this year, we can conclude the purchase of our 5th land bank of which we have started to process on the down payment, added Rustiyan. He also mentioned that Company will be adding more beds in the existing hospitals. Until first half 2016 the company has added around 75 beds across 12 existing hospitals. He also confirmed that Mitra Keluarga would still continue to expand its hospital network in the Greater Jakarta and Surabaya for the next five years. This expansion plan will be financed from the proceeds raised by the Company during its Initial Public Offering at the end of March 2015.  Rustiyan also asserted, “Although in general Indonesia is still facing a scarcity of doctors and medical personnel, with Mitra Keluarga’s high reputation of providing healthcare services for more than 25 years, we are confident of our ability to recruit qualified doctors and medical personnel to support Mitra Keluarga’s long term development plans in the next 5 years. The trust enjoyed by doctors and other medical personnel as well as the patients is strong evidence of Mitra Keluarga’s experience in providing affordable quality healthcare services for more than 25 years.


Mitra Keluarga at a Glance

Mitra Keluarga built its first hospital back in 1989 and currently owns and operates twelve hospitals, of which eight are located in Greater Jakarta, three in Surabaya, East Java, and one in Tegal, Central Java. Typically, the hospitals are equipped with emergency rooms, outpatient clinics, inpatient wards, operating rooms, intensive care units and a pharmacy, as well as laboratory and radiology facilities. The hospitals also offer specialized services such as obstetrics, pediatrics, internal medicine, angioplasty, orthopedics surgery and neurosurgery, amongst others. All Mitra Keluarga hospitals are accredited by Indonesian Commission on Accreditation of Hospital (KARS).

From its humble beginnings, Mitra Keluarga has transformed into one of Indonesia’s biggest private hospital operators by an intake of 1.72 million patients in 2015. It is the second largest private hospital in terms of hospital bed capacity with 1,725 operational beds as of 31 December 2015.

Mitra Keluarga employed more than 5,000 medical professionals including doctors, laboratory staff, nurses and therapists with close to 900 specialists practicing in all of its hospitals by 2015.

The company successfully listed its shares in the Indonesia Stock Exchange on March 24, 2015. With 18.0% free-float, Mitra Keluarga has a market capitalization of Rp34.92 trillion as of December 31, 2015. (IDX:MIKA).