Bumrungrad Hospital PCL (BKK:BH)
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May 5, 2026, 11:05 AM ICT
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Earnings Call: Q3 2021

Nov 9, 2021

Speaker 4

Good morning. Sawasdee krub. Welcome to the Q3 2021 BHPCL analyst presentation. The format of this presentation will be a recording, followed by a live Q&A session on the 11th of November. Hopefully by now, everybody has had time to review our financial results for the Q3, so we'll dive right into the presentation. I'd like to begin perhaps by commenting on what the development of the Q3 was, and it could be characterized by two key themes. One is the agility of the company in managing to backfill some of the lost international revenue as a result of the closure of the country due to COVID, as well as the ability of the company to be resilient in the face of external challenges related to COVID.

If one looks at the Thai revenue development, one would see that Thai revenue has continued to grow quarter on quarter, year on year as well, as well as to some extent, the expat revenue as well. For international revenue, we are encouraged and optimistic that with the opening of the country as of the beginning of this month, we expect to see growth and ramp up for our international patients as well. You've taken a look perhaps at the revenue numbers for this quarter, and I'd like to give you a little bit more detail on some of the often overlooked drivers of revenue for the hospital. When one looks at the Q3 snippets, you will see that one of the major drivers for revenue, which has indirect benefits as well, has been The 1 Card partnership we've had with Central Group.

The 1 Card is a loyalty program developed and owned by Central Group, and we have partnered with them to enable our patients to both earn and burn points by using Bumrungrad services. Now, based on the calculation we've made in terms of new patients using the 1 Card, newly registered patients, and those who have not used our services over the past two years, which we define as reactivated patients, we calculate that the accretive revenue being generated by the 1 Card is around THB 333 million as of the quarter. This is a growth of 14% Q-on-Q, 102% year-on-year, so a rather healthy number.

COVID-related revenue continued to grow in the quarter and registered THB 261 million, a growth of 21% Q-on-Q at over 1,300% year-on-year, albeit last year it was a rather low base. Referrals from other hospitals, so these are referrals from hospitals around Thailand, including our health network hospitals, continued to grow and maintain momentum, growing 4% Q-on-Q and 16% year-on-year. It also cements our reputation as a leading tertiary reference center, where we're accepting highly acute cases from other hospitals, given our expertise in treating complicated cases. Moreover, in the online store, something we've talked about in digital products, the momentum continues at a rapid pace, and we registered THB 146 million in revenue from online store and digital products, which includes gift vouchers, packages, checkups, vaccines, et cetera.

An 85% Q-on-Q growth, over 1,300% year-over-year growth. That is mainly due to the fact that the online store was only launched in the beginning of last year. On telemedicine continued to grow, and we did highlight the fact that as the country continues to open up, there should be a flattening of telemedicine as people prefer to come to the hospital. In the Q3, with the continued restrictions, we did register healthy growth of 10% Q-o-Q and over 50% year-over-year. Without further ado, I'd like to hand this over then to Neil Sorrentino, our Chief Global Strategist, who will comment further on other developments in the hospital for the Q3. Thank you.

Neil Sorrentino
Corporate Chief Strategy Officer, BHPCL

Sawasdee kup, and welcome to Q3 BHPCL analyst presentation. Thank you for joining. I'm gonna begin talking about the Q3 performance by showing you the ascending performance of the company since Q1 of this year. If you look at the EBITDA and net profit lines, you see a very, very strong growth trend, both on the EBITDA line, the net profit line, and the respective margins for both of those indices. In Q3, EBITDA was up almost 22% , and on net profit margin reached 9.9%, and the growth of net profit itself in absolute terms was THB 216 million in Q2, increasing to THB 296 million in Q3 . Very, very strong growth.

What's even more interesting about this very strong performance for the quarter is that in the quarter, as you quite likely know, the borders of Thailand were completely closed. The differences in international revenue for us in the quarter was THB 247 million less than Q2. What does that say about the diversity of our business line and how we accessed additional revenue to make up that difference, not only at some level of the difference, although we didn't make up all of the difference in the revenue. We were down a few percentage points on revenue, and I'll show that in a moment as soon as we get into the detail. In reverse, though, we were able to get higher-quality revenue in the quarter.

We were able to do even better cost control in the quarter than Q2, and the kinds of business we were getting was much more procedure-based than it was in Q2. I'll talk about the components of that revenue as we go through this.

For us, we're very pleased at seeing the level of diversity of the performance of the company, especially in such adverse conditions as the entire Thai border being closed, which reveals to us that we looked at the adversity for the year and especially in Q3, and as we've been doing for each quarter, and you see the trend line of growth. We've responded to that with a variation in approaching and successfully moving market share in Thai business and expat business, and in Q2, over THB 500 million in international business before the borders were closed. Although we did have about THB 250 million-THB 300 million Thai baht in overall international business, but we were far off the mark from Q2.

Also in the quarter, we celebrated our 41st anniversary as an institution, something we're very, very proud of with the kind of performance that we've had over the last 10, 12 years. It's a testament to the leadership, the dedication of our management, as well as the commitment of our long-term shareholders, in our company. Next Slide, please. I show you this Slide only because it portends the future for our company. We've been known historically as an international medical tourism company, and historically pre-COVID, two-thirds of our revenue has been international. Despite COVID, we've had this strong quarterly performance in 2021.

These are the countries effective November 1, just recently passed, that now the Thai government is allowing visitors from these countries to come into Thailand as long as they're fully vaccinated, 63 countries in total, to come into Thailand, as long as they're fully vaccinated with negative PCR type testing, they can come into the country without going through any Sandbox, no quarantine, et cetera. Some of my staff are gonna talk about this whole issue of reaching out to international patients, and talking about some of these countries in particular. As you look along the 63-country list, there's many, many of the countries that we have strong participation in historically, and some of our very big historical revenue drivers internationally, such as Myanmar, such as Cambodia.

I will say Cambodia has been quite strong all throughout 2021, the U.S., the U.K., the UAE, all of the Middle East, the whole Indochina sleeve of countries. With respect to guidance in talking about this, without giving any percentages, and I've been careful to not overpromise and then underdeliver in prior quarters going back to the beginning of COVID, but I will say this to the audience, is that we as a company feel very strongly about our uplift performance with these countries opening up.

A couple of data points to talk about to support our positive feel for both Q4 of 2021 going forward into Q1 through Q4 2022 is that today we're looking at, as we reach out into our referral offices, somewhere between 140-159 active patients who want to come to Bumrungrad Hospital that are just waiting for the borders to open, and now they are open. Today in our hospital, we have 16 Myanmar patients who have come across the border seeking healthcare, and we today.

Today, this afternoon, we have our fourth Myanmar relief flight, which we'll talk about in more detail later, bringing 19 Myanmar patients to our hospital from Yangon, many of them needing cancer therapy, cancer treatment, and in some cases, cancer surgery. There's a lot of data points that tell us about future optimism of our company and coupling that future with how we've been able to diversify our business base in 2021, and in particular, our digital online marketing situation. We've generated about THB 500 million in online direct digital revenue in 2021 year to date, and that's only going to grow more and more.

We've had previous presentations by our digital marketing officer, Khun Wisut, and that database, that platform is just continuing to grow, getting more diversified and more complex as we reach out now internationally to be able to bring in patients digitally, with such things as e-payment, e-wallet. Many of these things, our BH application has over, as I recall, 50+ thousand active users, and there's a turnover rate that will be talked about in terms of active users inside that universe of downloaded population.

When we look to the future, we won't only be known, as we were known in 2021 as an international destination hospital, but we'll be known for both that, going forward into 2022 and beyond, but as well, a diversified, domestic and digital performance organization. It only spells a higher profile for us as a public company going forward. Next Slide, please. Now let me take you through each one of the component parts of our revenue base, if I can. Okay. As I mentioned, when you look at the total net patient revenues, this is not gross, this is net, which is what we report, net being gross minus discounts, et cetera.

We were down for the quarter by 2.7%, but up from prior year 0.5%, and the decline is fully attributable to the borders being closed and that difference that I referenced earlier of over almost 250 million THB in decline in international revenue business, which include Middle East, from Q2 to Q3. That's the sum total differential explanation of this 2.7%. Next Slide. However, the converse to the overall revenue decline in the quarter, we had very, very strong Thai revenue growth. You can see up 5.2% against Q2, almost 18% against prior year quarter-on-quarter, and 3.7% Q3 2021 versus Q3 2020. And that was driven by three main areas.

One, very strong digital revenue production by our digital transformation social media platform. Two, COVID patients, which we treated. I believe the highest number of COVID patients in Q3 that we did in any quarter of 2021. Gift card revenue was quite high in the quarter, all digitally generated, quite high in the quarter for us. The combination of those three aspects drove this revenue up. Of course, the basic medical surgical Thai patients that were coming to our hospital just for routine medical surgical care. Less so in the quarter because of the high infection rate of the COVID population, especially in the greater Bangkok area. Nonetheless, it's those three pieces that made up this 5.2% revenue growth. Next Slide.

On expat, it was down for the quarter 6.3%. The principal reason for that in terms of decline on a relative basis was because of COVID. When we tracked by nationality, really what happened here? What was the story here? Why was it down 6.3%? If you're familiar at all with expat nationals, foreign nationals working in the greater Bangkok area, you would know that their annual contracting period expires in June. When we look deeper into the data, we saw that Americans and Australians who were contracted for labor employment here, their contract expired, and their employers asked them to defer renewal of their contracts until the COVID situation had more clarity.

Many of these expats, especially Americans and especially Australians, went back to their home country until they were reinvited back by their employers of record here in Bangkok for the most part, although some in Rayong. That reflection of that exodus of expats shows in these numbers. If you look at the trend line at the bottom, you will see there that when we get to the month of September, you'll see an uptick moving up to 7.9% if you follow the green trailing line in the month of September. Some of the expats started coming back.

That's what that trend line shows you as opposed to the end of June, where you see 5.7%, July, -5.2%, and then up it pops to plus 7.9%. That's what's happening there, which shows what I've just described to you of why this expat revenue was down 6.3% versus Q2. Next Slide. Although the quality of the remaining expat revenue in the quarter was quite good. When we studied that, it was quite good, quite pure, quite generational in profitability. Part of that is because we maintained very, very good cost control in the quarter. Our best cost control quarter of the year.

International tells the same story of what I talked about earlier about when I'm talking about total revenue, all international down 15.9%. All Thai borders closed to anyone coming into the country, absent some Cambodian patients that came in, who were deathly ill. MOPH allowed very, very few dribbles of patients coming into the country. For the most part, in our case, we treated some Cambodian patients, but it wasn't able to match up to Q2 with the borders closed. The same thing applies for international, Middle Eastern in particular. Next Slide. This tells you the story of what I've just described to you. With the exclusion of number 3, UB Songdo Hospital, in which we hold a 51% stake in Mongolia it has a positive variance of 28.7% by performance.

This is not patients we're talking about here. I put this up here because this reflects the entirety of the hospital performance of our UB Songdo Hospital, and it was up 28.7%. It's had a very, very good year throughout 2021. There's an interesting story here. Because of COVID, and they had their fair share of it in Mongolia as a country, the people couldn't exit out to where they emigrate to if they don't stay in Mongolia for care, and that's Korea. They weren't allowed to leave the country. They had to stay in country, and as a result, we benefited our hospital there. There's something else going on here that is noteworthy to mention.

That is over the last year, we have been a strong participant, and in some cases the only participant, in a social services, government-sponsored, donation-sponsored healthy heart program, if you will, for Mongolian children who can't afford intervention, where the government and private donations have been paying for congenital heart surgery. As it fortunately turns out, our partner here at UB Songdo Hospital is a cardiac surgeon of quite regional renown. His name is Dr. Bolorkhuu Khan, and he and a team of nine have been out all over the back parts of Mongolia, searching out these poor children whose parents are unable to provide surgery for their children with congenital heart disease.

We brought them to our hospital, and they've had surgery there. We've done about 300 open heart surgeries for pediatric cardiac patients, and that has helped UB Songdo Hospital dramatically on its performance side. All the other countries, you can see them for yourself. They've been down dramatically because of the border closures, absent UB Songdo Hospital and Cambodia. Next Slide. The net patient revenues for the Middle East, it's the same story.

Border closures, the difference between THB 565 million, and I'll tidy that number up when we get to it here in just a short bit, versus a net difference, I'm talking about international, of THB -247 million, which is reflected in part with this Middle Eastern decline quarter-over-quarter, because there was no Middle Eastern patients coming in at all to Thailand in Q3. I will say this, that as you look at Q3 2021 versus Q3 2020, it was still up 10.3%. A lot of this had to do with our long-term patients, international patients, and most, more importantly, they are Middle Eastern patients who remained in Thailand for care at our hospital, considered long-term patients.

You can see at the bottom here which countries they were represented from. Next Slide. Indochina, it's the same story, -26%. Again, this is the border closure against Myanmar, principally so, not completely so. The vast majority of the differential here is that the borders were closed to Myanmars, both differentially declined Q3 versus Q2 2021, and the same for Q3 2021 versus Q3 2020. Next Slide. Here is what I've been referring to throughout this presentation. If you look at the top left and the far right box, you'll see the difference between the revenue generation for Alternative Hospital Quarantine, THB 536 million versus THB 289 million. That differential, THB 247 million is the number.

That differential represents the border closures of Thailand in Q3 for us. It almost shut down completely because of the large infections, COVID infections in Thailand. The Thai government almost shut down almost exactly at the end of June, the beginning of our Q3 for everyone. On the far right here, you'll see the conversion rate of 70% for the Alternative Hospital Quarantine. Those that were coming in, dribbling and drabbling in, were needing revenue intensity intervention at the hospital. 70% of them converted. The Alternative State Quarantine two quarters ago was 10%. Last quarter, meaning Q2, was 16%. This quarter, Q3, was 23% conversion, because all these patients that were able to, what little there were coming into the country, needed immediate intervention, healthcare intervention at our hospital. Next Slide.

Going back to the first Slide I showed you, quarter one, quarter two, quarter three comparison. You look at this now, it reflects what, in a different format, what I showed you earlier, where the EBITDA quarter-over-quarter is up 13.4%, from Q1, almost 60% from the prior year-over-year, 22.5%. It's from the factors that I've mentioned throughout my discussion with you, that is driving this kind of performance. Next Slide. Same thing applies here. As you look at the trend, this is also an interesting trend, we're providing for you to look at the quarterly trend on the margin, which talks about many things, right? It talks about cost control.

It talks about diversity of the business profile that we brought in the absence of international business. What for us is very pleasing to see is that when you look at 4Q20, as we're in right now, coming through to 3Q21, rising to 15 from a baseline of 15.3% in Q1, rising to 19.1%, and our last quarter jumping even higher to 21.9%. We're not where we were pre-COVID, but we're moving positively in that direction. We expect these metrics to improve going forward with the country opening up. Next Slide. Same story for net profit, only an even better one when you look at the comparatives to Q2. 36.7% up from Q2. 224% up from Q1.

From prior year, most interestingly, 2020 to 2021, up 33.6%. All of the performance orientation metrics are all moving in a very, very positive direction for the company. We couldn't be more proud of this performance in the absence of international business. Next Slide. Same trending analysis here for you to have a look at on NOPAT quarterly trend on margin. You can see it in an ascending style from 1.8% in Q2 2020, bumped around to 7.6%, down 5.9%, way down to 3.4%, Q2 7.2%, and this quarter, 9.9%. Next Slide. Free cash flow for the quarter ending actually through October 31.

For the quarter Q3, we had the highest AR liquidation of any quarter in 2021, where we ended up October 31 at THB 8.065 billion in free cash flow. It was almost at the peak of its high for the year, and this number is in consideration of an interim dividend payment that was paid out in May and brought it back up to a THB 8 billion+ free cash flow number, which isn't negative, but we have a very, very strong balance sheet, especially since we don't have any debt on our balance sheet. We just went through a TRIS Rating bond performance evaluation, and we maintained our TRIS rating of A+, which is what we've had steadily all along. We do intend...

I think I reported last time we do intend on paying the last tranche of our bond ownership at our bond indebtedness of THB 2.5 billion. We will be paying that off in December 31 of this year. In closing, while we have talked about our agility and our ability to face diversity with strong integrated performance, just yesterday evening, another milestone for our medical center. Just yesterday evening, we did our very first heart transplant on a female adolescent patient who was in very serious need of a heart transplant, and a donor appeared. I'm pleased to report to you that post-operatively from last night, she's, the patient's doing very well under watchful review in our cardiac care unit for the next 14 days. That's the critical time period.

our medical team performed admirably in doing something that we haven't done before in 13 years. We're very proud to report that. We expect to build on this transplantation program as we've done our kidney transplantation program, because we will be returning to our high tertiary level and quaternary level. This kind of surgery is clearly quaternary level. Any kind of transplantation surgery is quaternary level care. We're returning to that as we get more and more complexly diverse patients. With that, I will close and look forward to answering your questions on the 11th of November during our Q&A live stream. Thank you very much.

Thank you, Neil. Now, the next presentation will be done by Khun Orapan on the financial highlights. Khun Orapan, please.

Orapan Buamuang
CFO, BHPCL

Good morning, everyone. I am Orapan Buamuang, Chief Financial Officer. I'm pleased to report to you all the financial highlight and financial performance for Q3 2021, and nine months of this year. For the financial highlight in Q3 2021, performance improved from Q3 last year and the prior quarter, primarily due to the increase in revenue from Thai patients and the continued cost containment programs. Revenue increased from Q3 2020 by 2.4%, but lower than prior quarter by 1% due to the Thai government full suspension of Alternative Hospital Quarantine during this quarter.

EBITDA for the Q3 this year increased by 22.5% and 13.4% from the Q3 last year and the Q2 this year, respectively, with EBITDA margin at 21.9% compared to 18.3% and 19.1% in the Q3 last year and the Q2 this year, respectively. Net profit in this quarter also increased by 33.6% and 36.7% from the Q3 last year and the Q2 this year, respectively, with net profit margin at 9.9% in the Q3 this year, compared to 7.6% and 7.2% in the Q3 last year and the Q2 this year, respectively. For nine months, performance still lower than nine months last year, mostly due to a limited impact of COVID-19 during first half of Q1 last year.

For the nine-month period, EBITDA margin was 18.9% compared to 22% in 9 months last year, and net profit margin was 7% compared to 10.8% in 9 months last year. Move on to see the financial performance. In Q3 this year, total revenue increased mainly came from Thai patient revenue increased, plus other revenue increased from bad debt recovery, VitalLife selling product and gain on disposal and shop rental income increased. In 9 months this year, total revenue declined by 8.7%, mostly due to 25.2% decrease in revenue from non-Thai patient, offset with a 9.5% increase in revenue from Thai patient.

For revenue contribution by nationality in Q3 this year, due to a 3.7% increase in revenue from Thai patient offset with a 3.7% decrease in revenue from non-Thai patient. As a result, the revenue contribution from Thai patient was 58%, whereas revenue from non-Thai patient was 42% for Q3 this year, compared with 56% and 44%, respectively, for Q3 last year. In nine-month 2021, due to a 25.2% decrease in revenue from non-Thai patient offset with a 9.5% increase in revenue from Thai patient. As a result, the revenue contribution from Thai patient was 55.1%, whereas revenue from non-Thai was 44.9% for nine-month 2021 compared with 45.6% and 54.4%, respectively, for nine-month 2020.

For the revenue contribution, revenue contribution from inpatient service increased to 53% in both the Q3 this year and nine months this year. This is mainly due to the overall length of stay increased this year. For revenue contribution by payer type, there was a change in payer mix due to the COVID-19 pandemic impact. The government third-party payer contribution in nine-month 2021 decreased from 17% to 12% due to restrictions on travel continuing to impact Middle East business. For self-pay, slightly increased from 60% to 64% in nine months this year, mostly due to increase in Thai and expat self-pay. For the insurance contribution, slightly increased from 20% to 21% in nine months this year due to increase in Thai insurance patient.

For the EBITDA, we had continued implementing variety of cost management programs since last year until now, including workforce management, contract management, and inventory supply management. As the result, we could achieve cost saving about THB 235 million for nine months this year. Plan to continue cost management program for the rest of this year as well. However, there are a few fixed cost that could not be reduced, such as cloud service software license for digital platform expansion and so on. As the result, EBITDA in Q3 this year was THB 54 million, improved by 22.5% from Q3 last year, mainly came from Thai patient revenue increase plus cost management result. EBITDA for nine months was THB 1,640 million, declined by 21.5% from the same period last year.

Mainly came from a high base revenue during first half of Q1 last year before the COVID-19 impact. For the EBITDA margin, in Q3 this year was improved to 21.9% compared to 18.3% in Q3 last year. EBITDA margin in 9-month 2021 was declined to 18.9% compared to 22% in 9 months last year. For the net profit was improved in Q3 this year by 33.6%, but still declined by 41.5% in 9 month 2021, with the same reason of EBITDA explanation. For the net profit margin in Q3 2021 was improved to 9.9% compared to 7.6% in Q3 last year.

Net profit margin in nine months was declined to 7% compared to 10.8% in nine months last year. For the net debt to EBITDA of nine months 2021 was 0.3 times, slightly lower than year 2020 due to less net debt. net debt-to-equity for 2021 was zero , slightly lower than year 2020 due to less net debt as well. In terms of the interest coverage ratio in nine months 2021 dropped to 16.6 times due to less EBITDA in this year.

When considering bond covenant requirement of net debt to EBITDA should be less than 3.25 times, and net debt to equity less than 1.75 times, the current net debt to EBITDA and net debt to equity in this quarter still a lot lower than bond covenant requirement. In September this year, Fitch Ratings affirmed the company’s A+ rating with a stable outlook. The rating reflects the company leading position in the premium private healthcare service market in Thailand and its well-recognized brand among local and international patients. The rating also takes into consideration its strong balance sheet with minimal financial leverage and ample liquidity position. Thank you for your attention, ka.

Speaker 4

Thank you, Khun Orapan. Now we move on to the business update Slide, where we are excited to announce to you two new technologies that we have deployed at Bumrungrad International Hospital. In line with our continuous effort to upgrade our services and improve care, in addition to technology being provided and upgraded, we have seen a number of new treatments which are in line with what we have mentioned earlier over many years now, that the need for beds is no longer as required. Because the two new technologies I'd like to talk about, one of which is called Rezūm, and the other IceCure, are essentially treatments for very common diseases or conditions which require no overnight stay. In other words, it is day surgery.

That is why we at Bumrungrad believe that the future of medical care will not be driven by increase in beds, but increase in turnover, driven by technology, as a result of not requiring overnight stay through minimally invasive surgeries, et cetera. What is Rezūm? Rezūm is essentially a water vapor-based therapy for treating benign prostatic hyperplasia. In layman's terms, this is a enlargement of the prostate. It's a very common condition affecting up to 90% of 85-year-olds throughout the world, and it increasingly becomes more frequent as you age from 40 years onwards. This is something that is almost entirely seen by almost everybody, and it creates a number of complications and a number of diseases, including urinary tract infections, discomfort through increased urination.

Some of the key benefits of minimally invasive surgery, as I mentioned, includes no need for overnight stay, and also much lower risk in terms of damaging vital functions, including erectile functions, et cetera. These are areas that we have been very focused on, and we are very excited in being the first in Thailand to deploy this technology. Currently, we have seen some very encouraging uptake from a number of people, and we will continue to market this. On to the next, which is IceCure. IceCure is essentially the use of cryoablation or freezing a tumor or tissue to destroy it and to eliminate it with a minimally invasive surgery. Once again, the incision is very small, requiring very little anesthetics and recovery time, and preserves the surrounding tissue of women's breasts, for example.

Now, breast cancer obviously is something that we're targeting both for women and for men. Typically for women, breast cancer is one of the leading causes of death. In fact, according to the American Cancer Society, breast cancer is the second leading cause of cancer-related death , and also the second highest in terms of cancer occurrence after skin cancers. This is yet again another common disease that people are facing, and we're using technology to address it in a way that is a lot more effective and less discomforting to the patient. We're very excited once again to be the first hospital in Thailand to deploy this technology, and we hope to expand its use to other diseases as we receive FDA approval to do so. On to the Bumrungrad online store.

We'd like to share with you the current number of downloads we've had with the Bumrungrad Hospital application. We have approximately 79,000 users to date who have downloaded this application, and in fact, 25,000 of those are monthly active users, which means that it, the uptake and usage for this application is extremely high when you compare it with other peers. It indicates to you the stickiness with which we have developed and catered to our patients.

This stickiness and active usage of the BH application enables the patient to not only manage their own healthcare through the application, whether it be for appointments, whether it be for checking medications or allergies, et cetera, but also enables them to purchase screening packages and so forth through the application and to make subsequent bookings and/or consultations with our doctors and with our nurses in regards to any inquiries they may have. This application has been, since the beginning of this year, increasing quite encouragingly, and we do believe we will see a lot more usage as the international market opens up and there are more international patients using the application when accessing care in Bumrungrad digitally. Moreover, if you can...

If you take a look at the revenue Slide graph at the top, you'll see that our online store has in fact broken new records and has now generated revenue of approximately THB 247 million as of September. This is beyond what we've expected so far with our internal targets. We are very, very encouraged by what we've seen. Now on to the Campus Master Plan update. We haven't updated you on the Campus Master Plan for about a year now, so we'd like to update you with progress on that. You will see that the total CapEx required for the Campus Master Plan until 2026 is approximately THB 12.7 billion. THB 9.25 or THB 9.3 billion of that is related to the Phetchaburi Hospital, and that's scheduled in 2026.

If we remove that amount, you're left with approximately THB 3.3 billion that is mainly related to developments around the campus, existing campus, the majority of which is related to hospital renovations, which includes new OPD clinics and radiology equipment, and also changes to the clinics within the clinic building or building C itself. We also have Soi 1 . Soi 1 is something we talked about over the past several years now. Soi 1 project continues, but it's undergoing only the first phase of development, which is the parking building. Subsequent phases includes clinics and diagnostics that will be constructed at a later stage, but is still currently planned.

Slightly delayed as a result of COVID due to the need for us to push back some of our CapEx investments for prudent monetary management, but also the fact that there is, of course, less demand as a result of less international business coming to the hospital. Nonetheless, we are very much engaged and focused towards that being a key contributor in the future for the hospital. Of course, a number of other constructions, one of which we touched upon, which is the BH Academy or the former iconic pharmacy building on Soi 3. That will become additional office space as well as a number of access improvements, bridges, for example, to the BH clinic from the hospital building itself. In addition to this, we have now begun renovations, total renovations of our wards.

All inpatient rooms at the hospital will be undergoing renovation in phases. We've closed now two floors for renovations, and the approximate amount which is not listed in this CapEx requirement is approximately THB 1.6 billion being done over two years. This is a major renovation of the hospital, which would essentially transform this hospital into a new hospital with brand-new facilities and top-end inpatient facilities and settings for our patients. It has not been done for several years now, and we feel it is now time to do so. We do believe that there is uplift as a result of that, and we are currently undergoing this. It's a very complicated process, so for those patients who are listening, there might be some disruptions as a result.

We do apologize for that, but we hope that after this renovation, this will be something rather exciting and also quite pleasing for our patients as well. Now finally, we will go on to the alternative hospital quarantine update and of course our business development update, mainly related to international business and what we're doing to bring in international business as a result of the good news we've received from the government in not only the Sandbox and Test & Go schemes, but also the unsuspension or restart of the alternative hospital quarantine. This will be presented by Dr. Thassanawut , Dr. Thassanawut please.

Thassanawut Dhearapanya
Division Director of Medical Transport and International Business Development, Bumrungrad International Hospital

Good morning, everyone. I'm Dr. Thassanawut Dhearapanya, Division Director of Medical Transport and International Business Development, Bumrungrad International Hospital. Thank you for joining us today. We are glad to deliver you with good news. As you can remember, we told you about the alternative hospital quarantine, and due to the pandemic and the situation in Thailand that got worsened and worsened with times, there were the period during which Alternative Hospital Quarantine was suspended first, partially, and then completely on June 28th, 2021. On the 8th of October, 2021, the reopening of Alternative Hospital Quarantine brought us joy and also patients. I'm more than happy to tell you today that we are looking forward to the new quarantine schemes that starting on the 1st of November.

People who have been fully vaccinated for more than two weeks before they arrive in Thailand, they will be able to apply for either the Test & Go scheme or the Sandbox program. I'll tell you about the Test & Go and Sandbox program a little bit over here. The government had announced 63 countries with low risk. If people are coming from these 63 countries in the list, then they will only have to get the test, and then after the RT-PCR test is negative, then they can go anywhere in Thailand. Hence, the name Test & Go. What they have to do is to book either a hotel room or a hospital room for one night, and after the test is yielded negative, then they can go.

For the Sandbox program, where the fully vaccinated people who come from the countries, the rest of the world, rather than those 63 that I mentioned, I'll go over it in a little bit. With this group of people, they can come into Thailand and stay for 7 nights at the Sandbox area. Luckily, Bangkok is one of the 17 provinces who were announced at the Sandbox area. I'll show you over here the list of the country. As you can see, we highlighted some of our key customers, Cambodia, Kuwait, Myanmar, and United Arab Emirates, for an example. People who are coming from these countries, they can just arrive in Thailand, stay in the hotel room or the hospital room until their first RT-PCR test is negative. They can go anywhere in Thailand, be it the mall or the hospital.

On the other hand, for the people who are coming from the countries outside of this list, they can still seek for medical care because during the day, they can go anywhere within the Bangkok area as the Sandbox program included. Even though the Alternative Hospital Quarantine was being suspended for a period of time, the pent-up demand was still there, and there were patients who were seeking the ways to enter Thailand and arrive in the hospital to seek for medical care. The only opening was through the hotel or the alternative quarantine facility. These people, 16 in August and 24 in September, they came into Thailand and underwent the quarantine in the hotel. Afterwards, they came to the hospital to seek for the medical care.

We were lucky enough to receive 4 cases directly through to the Alternative Hospital Quarantine because these are VIP patients who got the special request and approval from the government. After 8th of October, where the Alternative Hospital Quarantine was reopened, then we could bring up 49 patients, 49 cases into the hospital through the Alternative Hospital Quarantine program within the three weeks period. Look at the number here. Within the first week of November, we are expecting 27 cases to come into the hospital through the Alternative Hospital Quarantine program. Not only that, as you can see right here, updated on the 1st of November, we have 140 patients up in the list, some of them from Bangladesh, Kuwait, Myanmar, and also from Qatar.

Today, as we are recording this video to show to you, we are currently receiving patients from our fourth Bumrungrad relief flight directly from Yangon to Bangkok. With this flight, we are bringing in 11 patients through the Alternative Hospital Quarantine program and another 8 coming to the hotel. Ultimately, they will seek for the medical care in the hospital. Anywhere in the world, you can contact our referral offices, where they can give you and provide you with the information and also the facilitation that you need in order to ease your way to come into Bumrungrad International Hospital. We are looking for a very bright future, and the future is very near. Thank you very much.

Speaker 4

Thank you, Dr. Tasanawoot. This concludes the Q3 2021 analyst presentation. Stay tuned for the Q4 2021 full year analyst presentation. We will have our financial release on the 24th of February, followed a week after by the analyst presentation. See you then. Thank you.

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