qualitas medical group limited - · pdf file5 shareholding structure dato‟ dr ameen & mr...

QUALITAS MEDICAL GROUP LIMITED

CORPORATE PRESENTATION

January 2010

Contents

Our Business

Corporate Developments

Growth Strategies

Financial Highlights

Summary

Business Overview

4

Who We Are

Established in 1997

A leading primary healthcare services

provider in Malaysia Operates GP clinics with supporting diagnostic

services under Qualitas brand name

Network of 166* clinics across the country

More than 1 million patient visits annually

Established MNC client base

Regional network in India, Singapore, New Zealand & Cambodia

Scaleable & replicable business model

Listed on SGX Catalist on 1 September 2008

* As at 31 November 2009

5

Shareholding Structure

Dato‟ Dr Ameen

&

Mr Karim Dhala

(14.48%)

QH Sdn Bhd

(9.89%)

Qualitas Medical Group Limited

Commerce

Asset

Ventures (CAV) &

Commerce KPF

Ventures (CKPF)*

(26.55%)

Public

(48.6%)

Others

(0.48%)

* CAV is a wholly owned subsidiary of CIMB Group Sdn Bhd (CIMB Group), which in turn is a wholly

owned subsidiary of Bumiputra- Commerce Holdings Berhad (BCHB), a listed company on Bursa

Malaysia. CAV legally and beneficially owns 51.0% of the ordinary shares in CKPF.

As at 31 December 2009

6

Our Business Model

Doctor-led and doctor-governed

Network of doctor-shareholders

Focus on primary healthcare services

Outpatient services by GPs

One-stop higher-end clinics with a team of GPs

Prolonged care & monitoring of patients with chronic conditions

Health maintenance & general health screening and periodic

vaccinations

Equipped with supporting medical diagnostics services eg ECGs,

ultrasound and X-ray facilities

Expansion into dental care services

Network of dental clinics and international dental hospital in the region

Includes cosmetic dentistry, family dentistry and implant and restorative dentistry

services

Specialised dental care such as root canal treatments, orthodontic treatments,

implants, microscopic enhanced surgeries and laser assisted surgeries

• Consistent clinic

décor and signages

• Staff uniforms

• Sales and marketing

materials

• Allows data input by

clinics to be

uploaded to regional

offices, corporate

HQs, centralised

purchasing services

and key customers

Our Business Model

Centralisation of Operations

Integrated

software

system

Centralised

Purchasing

System

Centralised

Billing

System

Centralised

Branding

• Efficiencies in

inventory management

• Bulk discounts

• Uniform distribution of

drugs through network

of clinics and

continuous availability

• Convenience and

ease to corporate

clients and MCOs in

administering health

benefits

7

8

Our Malaysian Network

As at 31 November 2009

Our Malaysia Network

166 clinics across the country

83 owned clinics

83 affiliate and associate clinics

6

11

3

14

63

32

93 22

2

1

9

Established Clientele of MNCs

More than 5,000 corporate clients, including 11 MCOs

Corporate patients make up 62% of approx. 544,000 patient visits in

Malaysia in HY2009

Relationships with MNC clients a competitive advantage when expanding

in the region

MNCs and MCOs such as ING

(MCO)

As at 31 December 2009

India (2004)

1 owned clinic:

Chennai: Screening and

diagnostic facilities

40% stake in V.V Dentistree

India Private Limited (Aug‟09)

Chennai: Dental care clinic

chain with 5 clinics

1 international dental hospital

10

Growing Regional Network

7 1

166

Cambodia (Mar’08)

Affiliate arrangement 1 in Phnom Penh

New Zealand (Jun’09)

48% stake in Peak Primary

Limited

4 primary healthcare

services clinics

Singapore (Dec’09)

75% stake in Dr Marcus

Cooney & Associates Pte

Ltd

1 dental care clinic

4

CAMBODIA

As at 31 December 2009

1

Corporate Developments

12

Regional and Business Expansion

Acquisition of 75% stake in Dr Marcus Cooney &

Associates Pte Ltd (DMCA)

Dental clinic operating under the trade name „SmileFocus‟

Located in Camden Medical Centre

Provides wide range of specialist dentistry services, including

cosmetic dentistry, family dentistry, and implant and restorative

dentistry services

Staff strength of 42, including 3 specialists, 9 general dentists

and 1 dental hygienist. All the doctors have strong international

training and experience.

Beachhead into the Singapore market

13

Consideration to be paid in two tranches:

May be satisfied fully in cash or partly in cash, partly in Qualitas shares

Final valuation being equal to 7.5 times SmileFocus’ FY2010 profit after

tax

Max value capped at S$9 million

Acquisition of remaining 25% stake subject to amongst other

conditions

Exercise of put option granted to Dr Cooney (shareholder of remaining

25% stake) or call option granted to Qualitas

DMCA posted revenue of S$7.5 million and net profit after tax of

S$0.6 million in FY2008

(approx. RM18.2 million and RM1.5 million respectively)

Plans to expand the „SmileFocus‟ brand in Singapore and

Malaysia

Regional and Business Expansion

Beachhead into the Singapore market (cont’d)

14

Regional and Business Expansion

Expands regional footprint

New Zealand – Peak Primary (48% stake)

Acquired 1 additional clinic in December 2009

Total of 4 clinics and 30 doctors in Peak’s network

To acquire another 1 clinic in February 2010

Target clinic has strength of 9 doctors

India – V.V Dentistree India (40% stake)

Established 1 international dental hospital in August 2009

Located on a premise with 5 floors and total built up area of approx. 7000 sq ft

Fully-equipped operation theatre with modern facilities, digital orthopantomogram (OPG)

and state-of-the-art dental lab

Growth Strategies

16

Growth Strategies

Enlarge Presence in Malaysia

Expand GP clinic network

Identify and acquire suitable clinics for acquisition

Focus on strategic areas to expand and offer better geographical coverage

Develop affiliate/associate arrangements with other clinics

Provide training to individuals under the Ministry of Human Resources‟ “Train and Place

Scheme”, and organise other training programmes from time to time

Extend range of services to day-care centres

Signed a Memorandum of Understanding (MOU) with a day-care centre in Malaysia

Explore introduction of dental services

Via ‘SmileFocus’ brand expansion

17

Growth Strategies

Expand Presence in the Region

India

Continued expansion of dentistry services

Continue looking for suitable diagnostic centres to partner with

Australasia

Explore opportunities to increase network of GP clinics in New Zealand

Explore expansion of New Zealand clinic concept to Australia

Singapore

Increase number of „SmileFocus‟ dental clinics

Replicate „Qualitas‟ business model in Singapore

Signed a MOU with a GP practice to extend Qualitas’ reach

Financial Highlights

19

Financial Highlights

(RM’million) FY2005 FY2006 FY2007 FY2008 HY2008 HY2009

Revenue 51.9 52.5 57.7 62.2 30.3 32.3

Gross Profit 26.4 26.8 30.1 31.9 15.5 16.6

Profit Before Tax 8.5 8.4 8.3 8.7 3.8 4.3

Net Profit 6.7 6.2 6.3 6.1 2.9 3.0

Gross Profit Margin (%) 50.9 51.0 52.2 51.4 51.0 51.5

Profit before Tax Margin

(%)16.4 16.0 14.3 14.0 12.7 13.3

FY ended 31 December HY ended 30 June

20

Revenue

FY ended 31 December HY ended 30 June

RM’mil

51.9 52.557.7

62.2

32.330.3

21

Gross Profit

RM’mil

FY ended 31 December HY ended 30 June

22

Financial Highlights

As at 30

Jun 09

As at 31

Dec 08

Total assets (RM’million) 76.1 78.0

Cash & cash equivalents (RM’million) 21.7 24.7

Total equity (RM’million) 64.6 64.8

Current Ratio 5.3 4.6

Debt to Equity 5.5% 6.9%

Net Debt to Equity Cash Cash

EPS (RM sens) 2.25 5.15

NAV per share (RM sens) 47.9 48.0

Summary

Investment Merits

Scaleable & Replicable Business Model

Strong Balance Sheet

Regional Network in India, Singapore, New Zealand &

Cambodia

One of the Largest Networks of Private Clinics in Malaysia –

Economies of Scale

24

Focused on Primary Healthcare Services – A Resilient and

Defensive Sector

Q&As