IHH Annual Report 2018

REVENUE (RM MILLION) 11,008.6 869.4 1,229.9 7.2 1.5 11,387.8 321.6 1,407.2 YTD 2017 Parkway Pantai Parkway Pantai (Translation Di erence) Acibadem Holdings Acibadem Holdings (Translation Di erence) IMU Health Others YTD 2018 EBITDA (RM MILLION) 1,996.8 206.0 235.7 4.3 13.6 2,156.0 36.9 236.3 YTD 2017 Parkway Pantai Parkway Pantai (Translation Di erence) Acibadem Holdings Acibadem Holdings (Translation Di erence) IMU Health Others YTD 2018 by staying resilient and flexible as we align our resources to mitigate risks, seize opportunities and support growth in all areas of our business. On 30 November 2018, the Group became the single largest controlling shareholder in Fortis after completing an INR40 billion (RM2.4 billion) subscription by preferential allotment of shares for 31.1% interest in Fortis. On 1 October 2018, the Group completed a 100% acquisition of Amanjaya for RM104.8 million. The Group expects to invest approximately RM2.0 billion in capital expenditure (“CAPEX”) for hospital expansion and greenfield projects over the next three years, in line with the Group’s budget and CAPEX strategies. Liquidity The Group’s current cash, short-term and long-term borrowings and anticipated cash flows from operations are sufficient to meet our cash needs. This includes our working capital and CAPEX requirements for the next 12 to 18 months. We will comply strictly with all financial covenants stipulated by our banks and our internal guidelines. We also monitor all cash deposits to reduce counter-party risks across various banks. To ensure that the business has sufficient liquidity to meet its obligations, whilst managing payments, receipts and financial risks effectively, we constantly review the funding strategy for IHH and its subsidiaries. As at 31 December 2018, we have RM7.7 billion in cash and cash equivalents. Our cash consists primarily of cash on hand, balances and deposits with banks and fixed deposits with a tenure of three months or less. The Group also has the following available line of credit: • Revolving Credit Facility up to SGD1.8 billion in the form of a syndicated bank loan Our total liabilities amount to RM16.6 billion. This includes short-term borrowings of RM1.1 billion and long-term borrowings of RM9.3 billion as at end December 2018. With our healthy cash balance, operating cash flow and borrowings, we have been able to meet our immediate working capital needs and are confident that we can continue to do so for the foreseeable future. The above figures exclude PLife REIT The above figures exclude PLife REIT YTD 2018 vs YTD 2017 Actual At Constant Currency Parkway Pantai 8% 13% Acibadem Holdings -5% 32% IMU Heath 3% 3% IHH Group (Excl PLife REIT) 3% 19% YTD 2018 vs YTD 2017 Actual At Constant Currency Parkway Pantai 13% 15% Acibadem Holdings 0% 38% IMU Heath 5% 5% IHH Group (Excl PLife REIT) 8% 22% 45 Performance Review