Mitra Keluarga Reports Robust Revenues Growth of 15.5% in 1Q16

 Jakarta, April 28, 2016 – PT Mitra Keluarga Karyasehat Tbk. (“Mitra Keluarga” or the “Company”) today announces the Company’s financial performance for the period ended March 31, 2016. Mitra Keluarga posted revenues of Rp625.1 billion or an increase of 15.5% over the same period in 2015. The growth was driven largely by an increase in patient volume especially in the Greater Jakarta area. Partially, the increase due to the seasonal outbreak in these areas. Inpatient days have been growing vastly at 18.9% from 98,836 days for the first three months of 2015 to 117,545 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 72.2% with a total operating bed capacity of 1,788 beds compared to that of last year of 65.4% bed occupancy ratio with a total operating bed capacity of 1,679 beds. The outpatient visits have been growing from 425,452 to 454,727 visits, reflecting a growth of 6.9% for the same period. The inpatient days and outpatient visits at the existing 10 hospitals have been growing by around 16.0% and 5.1%, respectively, whilst the two new 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 three months of 2016 was Rp3.483 million, flat growth compared to that of the same period in 2015 of Rp3.480 million due to the low intensity cases in relation to the recent outbreak. Revenue per outpatient visits has been growing over the same period by 2.2%, from Rp464,000 to Rp470,000.  “We have added more beds in some of our hospitals, among others at Bekasi Timur, Cikarang, Depok, Cibubur and Kalideres as we have seen more than 20% inpatient volume growth at these hospitals. In total, we have added around 63 operating beds during the first three months of 2016 and therefore, by March 2016 we are operating 1,788 beds overall,” said Ir. Rustiyan Oen, MBA, President Director of Mitra Keluarga.  Rustiyan also explained that since March 1, 2016, Mitra Keluarga has participated in the Universal Health Coverage Program as Mitra Keluarga Tegal started to serve BPJS patients. “As our utilization rate at other Mitra Keluarga hospitals has been reaching the optimum level, we have no plan to serve BPJS patients at our other hospitals,” confirmed Rustiyan.

Rustiyan also added that Mitra Keluarga has enjoyed an 18.3% y-o-y EBITDA growth for the first three months of 2016, as the EBITDA margin expanded from 36.3% in March 2015 to 37.4% in March 2016 whilst Operating Profit grew by 16.8% over the same period from Rp170.3 billion to Rp199.0 billion. Despite Mitra Keluarga’s recent operation in Kalideres since end of July 2015, the operating profit margin was still expanded by around 0.3% from 31.5% in March 2015 to 31.8% in March 2016. The operating profit margin expansion was contributed by 1.7% margin expansion at the gross profit level, from 45.7% in the first quarter of 2015 to 47.4% in the first quarter of 2016, which was then diluted by higher operating expenses growth. The Company’s total salary expenses and depreciation have been growing, year on year, at 18.6% and 16.6%, respectively as at the end of March 2016. “Our net profit has been growing by approximately 26.4% in the first quarter of 2016 compared to the first quarter of 2015, reflecting a net profit margin expansion of 2.6% from 27.9% to 30.5% for the same period,” said Rustiyan. Mitra Keluarga has booked higher interest income on the back of higher cash balance at the end of March 2016. The net financial income for the first three months of 2016 was Rp42.7 billion which represents approximately 6.8% of the Company’s net revenue, increased from Rp25.7 billion for the same period of 2015. The Company has no bank loans or any other debt instruments, and with the addition from the proceeds of the Initial Public Offering on March 24, 2015, a net cash position amounting to Rp2,593.6 billion was recorded as March 31, 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,” added Rustiyan. 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).