Hermina Delivered Strong 2019 Financial Performances Surpassing Revised Guidance

Jakarta, April 4, 2020 – PT Medikaloka Hermina Tbk (“Hermina”, “the Company”) announced its audited financial results for the full year ended December 31, 2019 (FY19) with a net revenue of IDR 3.63 trillion, which represents an 18.7% increase compared to the previous year’s sales. The Company also reported Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of IDR 866.6 billion, a year over year increase of 34.5%, with a stable margin throughout the year.

The net income increased to IDR 343.9 billion, while the Profit After Tax and Minority Interests (PATMI) came at IDR 255.4 billion, which was more than double the previous year’s PATMI of IDR 124.4 billion. This result showed that the Company surpassed its full year guidance on every metrics, even after revising up the management guidance twice in July 2019 and October 2019.

Despite roughly half of the net revenue originating from JKN, the Company has been able to maintain a stable margin through economies of scale and constant improvement in operating efficiencies. Hermina continues its strategic courses in streamlining procurement and implementing the new IT systems.  These two initiatives will drive further margin growth, despite the likely macroeconomic or demand headwinds due to Covid-19 pandemic.

In terms of the bed addition, Hermina exceeded its full year target by having 4,014 operational beds across 36 hospitals. Meanwhile, the bed occupancy rate sits at a healthy 69.8%, even after Hermina added 636 beds. As the largest private hospital network in the country, the Company served more than 375,305 inpatient admissions (21.0% increase y-o-y) and 6.1 million outpatient visits (14.9% increase y-o-y) in 2019. The total inpatient days grew by 23.3% to 957,899 with an average length of stay (ALOS) of 2.6 days.

There are four new hospitals currently in development, including Hermina hospital in Karawang, West Java, which will soon become the referral hospital for Covid-19 patients. This progress is in line with the Company’s plan to own and operate 40 hospitals by the end of 2020.  The capital expenditure budget for the year 2020 is approximately IDR 800 billion to fund its organic/inorganic expansion, equipment additions, and other investments. The Company also recently announced IDR 100 billion share buyback as the management believes that the current share price is significantly undervaluing the true fundamentals of the business.

About Hermina

PT Medikaloka Hermina Tbk is one of the largest general hospital networks in Indonesia with 34 years of experiences in providing professional and comprehensive healthcare services. In addition to its strong heritage in women and children care, Hermina has developed itself to become a provider of specialties across healthcare. As of December 2019, the Company has 36 hospitals consisting of 8 type B hospitals and 28 type C hospitals with more than 3,800 doctors and specialists across 24 cities in Indonesia. The Company went public at Indonesia Stock Exchange (IDX) on May 16, 2018 and is trading with the ticker symbol HEAL.