Annual Report 2005 - Parkway Pantai

Let us take a closer look at each of our three core businessdivisions:Singapore Hospitals DivisionThis division includes East Shore, Gleneagles and MountElizabeth hospitals. Our local hospitals are reputed fortheir extensive expertise in specialist and quaternaryhealthcare.Revenue for the Singapore Hospitals division grew by 16%,from $258.6 million in 2004 to $300.3 million in 2005.EBITDA in 2004 was $79.7 million and this grew by 11%to reach $88.3 million in 2005.The growth in hospital revenue and EBITDA areattributable to the increase in foreign patient admissionsand high-end cases treated at our hospitals. Parkway iswell poised to tap into the government’s latest initiativeof creating Singapore into a medical hub for the region.Our reputation for top-notch specialised care and state-ofthe-artequipment attracted both local and foreign patients.Over the last 2 years, foreign patient load to Singaporeincreased by 39%. As the number of foreign patientsseeking specialised treatment in Singapore continuesto grow, Parkway will enjoy its leadership role in medicaltourism in Asia. Parkway’s foreign patients come fromcountries in the region such as Indonesia, Malaysia, SouthAsia and more recently, the Middle East.The year 2005 also saw Parkway spearheading many newinitiatives. We set another record when we introducedthe fi rst tomotherapy machine to Southeast Asia. Thishighly advanced radiation therapy equipment aims toprovide more precise treatment and reduces radiation tosurrounding healthy cells. In addition, Parkway establishedanother Centre of Excellence with a new NeurosurgeryCentre at East Shore Hospital to cater to the growingdemand for full-service neurology care. We also launchedthe Parkway-Toshiba regional CT technology training centrefor radiologists and radiographers from the ASEAN region,as well as from Australia, China, India and Pakistan.At Parkway, we endeavour to maintain our premier statusin Singapore. This implies continual innovation, furtherinvestment in facilities, greater value-added services andhighly-trained staff.International Hospitals DivisionWe are excited about the growth demonstrated in thisdivision. Revenue contribution from our internationaloperations has been growing steadily. In 2004, we targetedto grow our international revenue to 50% of total revenueby 2009. We have now surpassed our target. Our fourthquarter 2005 international revenue is already half our totalrevenue.Revenue for the International division saw the largestgrowth compared to the other divisions. In 2004, Parkwayreported divisional revenue of $54.0 million and this grewby a significant 94% to hit $104.5 million in 2005. The largejump in revenue is due to the incorporation of revenue fromPantai Holdings in fourth quarter 2005.The expansion of the Malaysian platform through the Pantaiinvestment played a signifi cant role in the 2005 results.Our Penang, Kuala Lumpur, Brunei and Kolkata hospitalsalso saw increases in revenue, EBITDA and patientadmissions, with Penang and Kuala Lumpur seeingincreases in high-intensity cases.14