Mitra Keluarga Reports Healthy Profitability in 2015

Jakarta, March 31, 2016 – PT Mitra Keluarga Karyasehat Tbk. (“Mitra Keluarga” or the “Company”) today announced its financial results for the year ended December 31, 2015. Mitra Keluarga reported revenues of Rp2.14 trillion or an increase of 10.0% from 2014 revenues of Rp1.95 trillion. The growth was driven by the increase of revenue intensity which included price increase and intensification of more complex services in the existing eleven hospitals operated by the Company as reflected in the increase of revenue per inpatient day of 12.5% and in the increase of revenue per outpatient visit of 14.7%.

Patient volume in 2015 (1.72 million patients) remained relatively flat compared to that of last year (1.73 million patients) with around 105,000 inpatient admissions and 1.61 million outpatient visits. Inpatient days was recorded at around 367,000 with an increased revenue per inpatient days of Rp3,771,000 while revenue per outpatient visits increased to Rp470,000 in 2015.

The average length of stay was reduced from 3.6 days in 2014 to 3.5 days in 2015 as a result of improved clinical pathway implementation. The bed occupancy ratio was recorded at around 58.2% as the Company increased its operational beds from 1,647 to about 1,725 beds in 2015. The additional operational beds were mainly contributed by the opening of the Company’s twelfth hospital, Mitra Keluarga Kalideres, in July 2015 with close to 45 operational beds in the early phase as well as the addition of more beds in the existing hospitals.

The Company recorded a gross profit of Rp972.31 billion in 2015 grew by 12.5% as compared to Rp864.59 billion in 2014, while the Company’s gross profit margin rose to 45.4% in 2015 from 44.4% in 2014. The implementation of the standardization of drugs procurement continued to have a positive impact on the Company’s gross profit margin.

In December 2015, the Company decided to take part in the Indonesian Government’s fifth stimulus package regarding fixed asset revaluation. The assumption of additional gain from fixed asset revaluation is around Rp545.67 billion and the Company has paid around Rp16.37 billion of tax gain on fixed asset revaluation in 2015. The revaluation of fixed assets will be subjected to approval from the Indonesian Tax Authority.

The Company booked an operating profit of Rp604.92 billion in 2015 as compared to the restated Rp588.92 billion in 2014. Additionally, when the 2015 tax payment of gain on fixed asset revaluation of Rp16.37 billion and the 2014 non-recurring gain on sale of marketable securities of Rp26.75 billion were being excluded, the operating profit grew by 10.5% while operating profit margin remained stable at around 29.0%.

The Company also booked a net income of Rp588.45 billion in 2015 increased by 9.7% as compared to the restated 2014 number of Rp536.21 billion. Similarly, when the non-recurring transactions were being excluded, the net income grew by 18.7% while net income margin improved to 28.3% from 26.2% in 2014. “The disciplined management of our operational costs has resulted in positive growth of operating profit and net income this year,” explained Ir. Rustiyan Oen, MBA as the Company’s President Director.

In addition, the Company was able to maintain its working capital turnover at around 9 days and generated cash flow from operating activities of Rp699.63 billion. In 2015, the Company recorded Rp205.35 billion of capital expenditure, mainly used for the Company’s expansion plans. Furthermore, the Company has no bank loans or any other debt instruments, and with the addition from the proceeds of the Company’s Initial Public Offering in March 24, 2015, a net cash position of Rp2.39 trillion was recorded as of December 31, 2015.

Rustiyan explained that the Company’s intention to open another six hospitals until 2019 in Greater Jakarta or Surabaya will be carried out according to initial plans. Consequently, it is expected by the end of 2019, the Company will operate 18 hospitals with a total capacity of 3,400 beds. This expansion mainly will be financed from the proceeds raised by the Company during its Initial Public Offering (IPO) last year. 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 quality 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. The trust enjoyed by doctors and other medical personnel as well as the patients is a 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 an 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 practising 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).