BH : Annual Report 2013 by Bumrungrad Hospital Public Company Limited

Bumrungrad Hospital Public Company Limited

Annual Report 2013

CONTENTS Message from the Chairman

Message from the Corporate CEO

Building on a Solid Foundation

Directors and Senior Executives

Financial Information

Financial Highlights

Management Discussion & Analysis

Report of the Audit Committee

Report of the Accountability of the Board of Directors to the Companyâ&#x20AC;&#x2122;s Financial Reports

Financial Statements

Company and Business Information

Corporate Governance

Internal Control and Risks Management

103

Related Parties Transaction

107

Corporate Social Responsibilities

113

Message from the Chairman

ealth is such a basic human need, it would be tempting to assume the demand for health services is reliably constant. Not so. Populations age and diseases become more or less prevalent. Economic trends and politics affect demand. Technology provides new ways to deliver care, easier access to information, and, if a patient desires, more convenient means to travel for treatment. Business strategies of successful healthcare providers must be based on such things. They must be more sustainable than what magazine editors or the investment community is fascinated with this year. The markets we choose and the ways we plan to serve them are longer-term commitments. In 2011, Bumrungrad refocused its strategy. Today we are in the middle of executing ambitious plans based on that strategy. The strategy is a simple one with powerful implications. Our priority is to serve high-value local and international patients from our base in Thailand, where we enjoy unique competitive advantages. Nowhere else can we offer such an ideal combination of excellent KVJ[VYZ JVTMVY[PUN ZLY]PJL HUK LMÄJPLU[ MHJPSP[PLZ This does not imply we withdraw from international markets. On the contrary, Bumrungrad has built an appealing brand to medical travelers, and we should leverage it. But that does not require us to build and attach the Bumrungrad name to hospitals where people will not receive the Bumrungrad patient experience. This would be a short-term strategy. It would dilute the brand until it no longer stood for something special. Instead, our expansion takes two forms. First and foremost, we must provide the facilities, medical and service staff to serve more local and international patients in Bangkok. We need not only more doctors; they must be doctors with superior skills and experience in the most advanced treatments. We need not only more staff; they must be trained in the “Bumrungrad Way” that results in consistently high satisfaction for patients from diverse cultures. We need not only more space; it must be the kind of aesthetically attractive, innovative space [OH[ PUZWPYLK QV\YUHSPZ[Z [V JHSS \Z ¸[OL Ä]L Z[HY OVZWP[HS ¹ Second, we can extend our business into key domestic and international markets in ways that yield better

PU]LZ[TLU[ YL[\YUZ [OHU NYLLU ÄLSK OVZWP[HS WYVQLJ[Z Partnerships with the right local providers will allow us to support primary care, diagnostic and other low-acuity treatment where our patients live. The most serious cases can be referred to our main facility in Bangkok. I call this strategy “intelligent expansion” because it meets both customer and Company needs. We reach a wider base outside with convenient services closer to them, while improving our business mix with higheracuity referrals to the center. Intelligent expansion requires intelligent people. This past year we worked hard to develop and recruit Bumrungrad’s next generation of leaders. We promoted 23 of our brightest people into Director-level positions or above and recruited 11 more from outside the Company. We also continue to attract superb doctors, including Thai doctors who have honed their skills and established excellent reputations overseas. That these bright doctors and executives have chosen Bumrungrad for their careers bodes well for the future of the Company.

Mr. Chai Sophonpanich Chairman

Message from the Corporate CEO

trategy without execution is a menu without a meal. Since refocusing on expanding our core capabilities, the Company has added space, bought land, upgraded technology and developed WLVWSL >L HYL UV[ ÄUPZOLK I\[ WYVNYLZZ PZ ZPNUPÄJHU[ and our results will allow us to continue. Since the beginning of 2013 we have added 58 additional ILKZ PU [OL JVU]LYZPVU VM [OL OVZWP[HS»Z [O ÅVVY [V inpatient wards. Capacity to accept more critical care cases, particularly from Thai hospitals, will grow with the addition of 18 more ICU beds in March 2014. 3HZ[ 4H` ^L VWLULK MV\Y TVYL V\[WH[PLU[ ÅVVYZ PU [OL Bumrungrad International Clinic building. They feature more space and updated technology for such important specialty centers as Eye, Spine, Orthopaedic and Neuroscience. Meeting rooms were relocated from the hospital to a beautiful new conference facility on [OL JSPUPJ I\PSKPUN»Z [VW ÅVVY ^OLYL KVJ[VYZ U\YZLZ managers and visitors can meet and learn with views out over the campus and city. The Company continued its plans for land acquired in 2012, clearing property close to the main campus and submitting government and environmental applications relating to the Petchaburi Road plot. We worked with [OL <: HYJOP[LJ[\YHS ÄYT /.( VU OVZWP[HS KLZPNUZ HUK acquired a building to provide more space for nurse KVYTP[VYPLZ HUK IHJR VMÄJL M\UJ[PVUZ In May 2013 we also opened a new Joint Replacement Center. It is staffed by a team of specialists trained in the innovative techniques used at the Dorr Arthritis Institute in California, using 3D computer modeling and robotic arm-assisted surgery. The center offers patients suffering from worn-out hips and knees solutions with less pain and faster recovery. Bumrungrad’s Heart Center has long been recognized both locally and internationally as a center of excellence in the region. An expert team specializing in cardiac HYYO`[OTPHZ ^PSS ILULÄ[ MYVT H UL^ Z[H[L VM [OL HY[ LSLJ[YVWO`ZPVSVN` SHI [OH[ OLSWZ [OLT Ä_ [OL JVTWSL_ and dangerous “short circuits” that cause irregular heartbeats. To support this and other expansion projects, we have recruited 138 new doctors since the beginning of 2013.

International market expansion focused on Asia, where we are seeing the most growth. Since the beginning of ^L OH]L LZ[HISPZOLK UL^ YLMLYYHS VMÄJLZ PU 0UKVULZPH Laos, Russia, China and the UAE. Our fastest growing referral market, Myanmar, added branch offices in Mandalay and Naypyidaw. Bumrungrad’s network of YLMLYYHS VMÄJLZ ¶ UV^ PU JV\U[YPLZ ¶ OHZ JVU[YPI\[LK consistent “same store” growth of over 20% per year. As we execute our strategy of intelligent expansion, the results are encouraging. 2013 was another record year for revenue. Margin and EBITDA were also at all-time OPNOZ YLÅLJ[PUN V\Y LTWOHZPZ VU OPNO ]HS\L WH[PLU[Z [LY[PHY` JHYL HUK KPZJPWSPULK THUHNLTLU[ 5L[ WYVÄ[ excluding the extraordinary gain from the KH sale in 2012, was also the highest ever. ;OLZL YLZ\S[Z NP]L \Z H YLSPHISL ÄUHUJPHS MV\UKH[PVU ZV ^L can continue investing in our strategy despite occasional turbulence from external international and domestic factors. As I write this, we are working on new partnerships that will expand our brand presence in key markets to support growth. In Asia we are surrounded by new consumers with the desire and means to get better healthcare for themselves and their families. If we serve them well we will succeed.

Mr. Dennis Brown Corporate CEO

Building on a solid foundation

umrungradâ&#x20AC;&#x2122;s future success is anchored on a solid foundation decades in the making.

The Companyâ&#x20AC;&#x2122;s reliable financial performance allows it to invest for the future. Today Bumrungrad is executing an ambitious plan that will attract and serve more patients from Thailand and around the world. Its deep resources allow it to consistently recruit top medical professionals, build innovative facilities, and invest in leading technology.

Outstanding medical talent, fully equipped

ttract the best doctors and you can serve the most valuable patients. Bumrungrad’s reputation has allowed it to expand its medical staff without relaxing its rigorous selection criteria. Over 1,200 doctors are equipped with advanced technology, state-of-the-art facilities, and a supporting team with experience to handle demanding cases from all over the world. In 2013 the hospital opened a Joint Replacement Center MLH[\YPUN ;OHPSHUK»Z ÄYZ[ 4(267SHZ[` YVIV[PJ HYT HUK + surgical modeling system. Over a dozen Bumrungrad doctors and nurses trained at the famous Dorr Arthritis Institute in California to master a technique that restores mobility faster and less painfully for patients with worn-out hips and knees. By the end of 2013, work was well underway on a new Arrhythmia Center. By mid-2014 the center will feature one of Southeast Asia’s most advanced electrophysiology labs, HSSV^PUN ZWLJPHSPZ[Z [V Ä_ [OL JVTWSL_ HUK KHUNLYV\Z ¸ZOVY[ circuits” that cause irregular heartbeats.

Comfortable, beautiful, innovative space to grow

ur transformative growth plan is a blueprint for ZLY]PUN ZPNUPĂ&#x201E;JHU[S` TVYL WH[PLU[Z MYVT V\Y OVTL base. To get there, weâ&#x20AC;&#x2122;ve been adding more space at our existing campus and will develop satellite campuses nearby on acquired land. 4VYL ZWHJL JHTL VUSPUL K\YPUN PUJS\KPUN Ă&#x2026;VVYZ VM new outpatient facilities in the International Clinic Building, and new inpatient rooms in the hospital building. The Horizon Cancer Center, along with chemotherapy facilities, have been upgraded. New intensive care beds and rehabilitation facilities were added. Beyond boosting capacity, the major capital investment in additional space and facilities reflects Bumrungradâ&#x20AC;&#x2122;s philosophy that the healing environment contributes to the quality of care. Intelligent design, integrating information [LJOUVSVN` Z\JO HZ >P Ă&#x201E; HUK [HISL[ KL]PJLZ HSZV JVU[YPI\[LZ [V ZLY]PJL HUK VWLYH[PVUHS LMĂ&#x201E;JPLUJ`

Connecting a world of care

atients from over 190 countries have made Bumrungrad one of the world’s most popular medical destinations. (Z JVTWL[P[PVU PU[LUZPÄLZ [OL OVZWP[HS Z[YLUN[OLULK P[Z international presence in Asian markets that will be the most important sources of future growth. )\TY\UNYHK L_WHUKLK P[Z UL[^VYR [V YLMLYYHS VMÄJLZ PU JV\U[YPLZ ;OL` HYL VM[LU [OL ÄYZ[ WVPU[Z VM JVU[HJ[ MVY V]LYZLHZ patients. They help with everything from answering questions and scheduling doctor appointments to assisting with travel arrangements. Bumrungrad is also an important referral center for other Thai hospitals. In 2013, inpatient volumes from outside Bangkok YVZL YLÅLJ[PUN [OL OVZWP[HS»Z LMMVY[Z [V HJJVTTVKH[L more domestic tertiary cases through bed management and network development. Connecting with diverse patient sources requires easy to use information in multiple channels. The hospital’s online presence has grown to include more languages, more relevant and accessible information, and mobile platforms.

One of the many craft items hand made by our staff and sold at the Lahn Nam Jai charity retail shop, which raised 4.6 Million Baht for our charitable activities in 2013.

Do well and do good

onoring its responsibilities to the community has been a Bumrungrad ideal since the Company’s founding. Bumrungrad means “caring for the community.”

In 2013 Bumrungrad’s people ¶ supported by the Company, the Bumrungrad Foundation and its philanthropic partners ¶ engaged in over 40 community service projects, charitable initiatives and environmental protection programs. As part of the Rak Jai Thai charity program, Bumrungrad surgeons in 2013 performed no-cost heart surgeries for 23 Thai children who lack the resources or access to much-needed cardiac surgeries. At the personal request of Thailand’s Ambassador to Myanmar, Bumrungrad also performed the ÄYZ[ Z\JO Z\YNLYPLZ MVY JOPSKYLU MYVT P[Z ULPNOIVY ;OL` joined 675 other children who are able to lead normal lives and look forward to the future, thanks to this program.

Directors and Senior Executives

Mr. Chatri Sophonpanich Advisor to the Board

Mr. Chai Sophonpanich Chairman of the Board

Dr. Chanvit Tanphiphat, MD Vice Chairman of the Board

Mrs. Linda Lisahapanya Managing Director

Dr. Dhanit Dheandhanoo, MD Director

Dr. Sinn Anuras, MD Director

Mr. Chong Toh Director

Dr. Suvarn Valaisathien Director

Ms. Sophavadee Uttamobol Independent Director

Mr. Prin Chirathivat Independent Director

Mr. Soradis Vinyaratn Independent Director

Mrs. Aruni Kettratad Independent Director

Mr. Dennis Michael Brown Corporate CEO

Mr. James Matthew Banner Hospital CEO

Mr. Banphot Kittikinglert Company Secretary

Annual Report 2013

Financial Information

Bumrungrad Hospital Public Company Limited

Financial Highlights Financial Performance (Baht ‘000) Total current assets Total assets Total current liabilities Total liabilities Total shareholders’ equity Total revenues Share of income from investments in joint venture and associated companies /FU QSPÇU FYDMVEJOH FYUSBPSEJOBSZ JUFNT /FU QSPÇU GPS UIF ZFBS #BTJD FBSOJOHT QFS TIBSF &BSOJOHT QFS TIBSF o GVMMZ EJMVUFE Book value per share #PPL WBMVF QFS TIBSF o GVMMZ EJMVUFE Dividend per share Financial Ratios (SPTT QSPÇU NBSHJO

&#*5%" NBSHJO

/FU QSPÇU NBSHJO FYDMVEJOH FYUSBPSEJOBSZ JUFNT

/FU QSPÇU NBSHJO

(SPXUI PO SFWFOVFT GSPN IPTQJUBM PQFSBUJPOT

(SPXUI PO OFU QSPÇU FYDMVEJOH FYUSBPSEJOBSZ JUFNT

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3FUVSO PO FRVJUZ

3FUVSO PO BTTFUT

-JBCJMJUJFT UP FRVJUZ Y

%FCU UP FRVJUZ Y

/FU EFCU UP FRVJUZ Y

*OUFSFTU DPWFSBHF SBUJP Y

-JRVJEJUZ SBUJP Y

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"WFSBHF QBZBCMF QFSJPE EBZT

2013

2012

2011

2010

2009

7,551,836 17,251,529 2,125,098 7,654,564 9,596,965 14,651,386

7,669,703 15,984,706 2,137,622 7,474,218 8,510,488 14,041,637

2,704,287 13,690,978 1,505,987 6,738,674 6,952,304 11,306,221

1,854,947 9,151,677 1,723,241 3,082,241 6,069,436 10,055,841

1,331,835 8,566,992 1,664,381 3,094,381 5,472,611 9,337,856

5,882 2,520,782 2,520,782 3.46 2.91 13.17 11.06 1.90

93,343 2,009,804 2,558,512 3.51 2.95 11.68 9.81 1.80

82,684 1,555,043 1,588,035 2.18 1.83 9.54 8.02 1.10

(34,927) 1,321,413 1,258,495 1.73 1.45 8.33 7.00 0.90

47,244 1,245,648 1,245,648 1.71 1.44 7.51 6.31 0.85

42.4 27.7 17.2 17.2 10.8 25.4 -1.4 27.8 15.2 0.80 0.54 (0.07) 16.42 3.55 35.30 11.80 29.54

39.9 25.3 15.1 18.1 16.7 29.2 61.1 35.0 18.1 0.88 0.59 (0.12) 13.81 3.59 36.67 11.65 28.10

40.1 25.0 13.7 13.9 12.5 17.7 26.2 24.4 14.0 0.97 0.72 0.53 14.88 1.80 37.18 13.19 30.12

39.6 24.4 13.1 12.5 8.0 6.1 1.0 21.8 14.2 0.51 0.25 0.15 35.95 1.12 33.48 12.62 32.83

38.8 24.2 13.3 13.3 5.1 4.6 4.6 24.1 14.9 0.57 0.30 0.23 24.83 0.80 26.67 12.54 33.32

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Annual Report 2013

Management Discussion and Analysis

Bumrungrad Hospital Public Company Limited

Finance cost was Baht 148 million in 2013 compared to Baht 241 million in 2012. The decrease was primarily due to #BIU NJMMJPO JO DBQJUBMJ[FE JOUFSFTU FYQFOTFT SFMBUFE UP UIF DBNQVT FYQBOTJPO $PSQPSBUF JODPNF UBY PG #BIU NJMMJPO JO XBT MPXFS UIBO #BIU NJMMJPO JO NPTUMZ EVF UP #BIU NJMMJPO BTTPDJBUFE XJUI UIF HBJO GSPN UIF TBMF PG BMM TIBSFT JO #BOHLPL $IBJO )PTQJUBM 1$- JO #BIU NJMMJPO GSPN UIF SFEVDUJPO PG UIF TUBUVUPSZ DPSQPSBUF JODPNF UBY SBUF GSPN JO UP JO PGGTFU CZ #BIU NJMMJPO JODSFBTFE UBYFT EVF UP IJHIFS UBYBCMF PQFSBUJOH QSPÃ&#x2021;U JO DPNQBSFE XJUI #BTJD &14 GPS PG #BIU XBT MPXFS UIBO #BIU JO XIJMF %JMVUFE &14 EFDMJOFE BU UIF TBNF SBUF UP #BIU GSPN #BIU JO &YDMVEJOH UIF FYUSBPSEJOBSZ JUFNT SFMBUFE UP UIF TBMF PG JOWFTUNFOUT JO #BOLPL $IBJO )PTQJUBM 1$- BOE UIF 4IBSF PG MPTT GSPN #VNSVOHSBE *OUFSOBUJPOBM -JNJUFE "EKVTUFE #BTJD &14 GPS XBT #BIU SFTVMUJOH JO B JNQSPWFNFOU ZFBS PWFS ZFBS UP #BIU JO "EKVTUFE %JMVUFE &14 HSFX BU UIF TBNF SBUF GSPN #BIU 2.32 in 2012 to Baht 2.91 in 2013.

Income statements Unit: Million Baht 3FWFOVFT GSPN )PTQJUBM 0QFSBUJPOT Gain on sales of investments Total Revenues EBITDA 4IBSF PG QSPÃ&#x2021;U GSPN JOWFTUNFOUT JO BTTPDJBUFT /FU 1SPÃ&#x2021;U EBITDA Margin /FU 1rPÃ&#x2021;U Margin EPS Unit: Baht &14 o #BTJD &14 o 'VMMZ %JMVUFE

2013

2012

Change

14,251

12,856

10.8%

790

-100%

14,651

14,042

4.3%

4,016

3,326

20.8%

-93.7%

2,521

2,558

-1.4%

27.7%

25.3%

17.2%

18.1%

2013

2012

Change

3.46

3.51

-1.4%

2.91

2.95

-1.4%

2. STATEMENT OF FINANCIAL POSITION As at 31 December 2013, the Company reported Total current assets of Baht 7,552 million, a decrease from Baht 7,670 million as at 31 December 2012. The variance is mostly due to a reduction of Baht 177 million in Cash and cash equivalents and a decline of Baht 28 million in Trade and other receivables, offset with an increase of Baht 71 million in Inventories. Trade accounts receivables were Baht 1,284 million as at 31 December 2013 versus Baht 1,314 million as at 31 December 2012. The collection period was 35.3 days as at 31 December 2013 compared to 36.7 days as at 31 December 2012. Total non-current assets increased to Baht 9,700 million as at 31 December 2013 from Baht 8,315 million as at 31 %FDFNCFS NPTUMZ EVF UP BEEJUJPOBM 1SPQFSUZ QMBOU BOE FRVJQNFOU BTTPDJBUFE XJUI UIF DBNQVT FYQBOTJPO 5PUBM BTTFUT HSFX UP #BIU NJMMJPO BT BU %FDFNCFS GSPN #BIU NJMMJPO BT BU %FDFNCFS Total current liabilities were Baht 2,125 million as at 31 December 2013, a decrease from Baht 2,138 million as at 31 %FDFNCFS 5IF SFEVDUJPO XBT QSJNBSJMZ GSPN #BIU NJMMJPO MFTT *ODPNF UBY QBZBCMF B #BIU NJMMJPO EFDMJOF JO "DDSVFE QIZTJDJBO GFF BOE B #BIU NJMMJPO EFDSFBTF JO WBSJPVT "DDSVFE FYQFOTFT PGGTFU CZ #BIU NJMMJPO NPSF JO 5SBEF and other payables. Non-current liabilities rose to Baht 5,529 million as at 31 December 2013 from Baht 5,337 million as at 31 December NPTUMZ EVF UP B #BIU NJMMJPO MPOH UFSN MPBO GSPN BO BTTPDJBUF "MUIPVHI $BTI BOE DBTI FRVJWBMFOUT EFDSFBTFE TPNFXIBU BT OPUFE BCPWF UIF UPUBM EFCU BT BU %FDFNCFS SFNBJOFE TJHOJÃ&#x2021;DBOUMZ MPXFS UIBO UIF $BTI BOE DBTI FRVJWBMFOUT CBMBODF MFBEJOH UP B OFU DBTI CBMBODF BGUFS DPOTJEFSJOH PVUTUBOEJOH EFCU "GUFS BEEJOH CBDL UIF DBQJUBMJ[FE JOUFSFTU FYQFOTF SFMBUFE UP UIF DBNQVT FYQBOTJPO PG #BIU NJMMJPO UIF $PNQBOZkT *OUFSFTU DPWFSBHF SBUJP JNQSPWFE UP Y JO GSPN Y JO EVF UP IJHIFS &#*5%" JO DPNQBSFE UP 5PUBM TIBSFIPMEFSTk FRVJUZ HSFX UP #BIU NJMMJPO BT BU %FDFNCFS GSPN #BIU NJMMJPO BT BU %F DFNCFS 5IJT JODSFBTF SFTVMUFE GSPN UIF $PNQBOZkT /FU QSPÃ&#x2021;U PG #BIU NJMMJPO OFUUFE PGG XJUI B EJWJEFOE QBZNFOU PG #BIU NJMMJPO BOE PUIFS DIBOHFT JO 3FUBJOFE FBSOJOHT PG #BIU NJMMJPO "WFSBHF SFUVSO PO BTTFUT 30" EFDSFBTFE GSPN JO UP JO 4JNJMBSMZ "WFSBHF SFUVSO PO FRVJUZ 30& EFDMJOFE GSPN JO UP JO #PUI DIBOHFT XFSF EVF UP FYUSBPSEJOBSZ JUFNT JO DPOTJTUJOH NPTUMZ PG UIF OFU HBJO SFBMJ[FE CZ UIF $PNQBOZ GSPN UIF TBMF PG BMM PG JUT JOWFTUNFOU JO #BOHLPL $IBJO )PTQJUBM 1$-

Million Baht Assets Liabilities Shareholdersâ&#x20AC;&#x2122; Equity

*OUFSFTU $PWFSBHF 3BUJP Y

"WFSBHF $PMMFDUJPO 1FSJPE EBZT

"WFSBHF *OWFOUPSZ 1FSJPE EBZT

"WFSBHF 1BZBCMFT 1FSJPE EBZT

/FU %FCU UP &RVJUZ Y

"WFSBHF 3FUVSO PO "TTFUT

"WFSBHF 3FUVSO PO &RVJUZ

31-Dec-13

31-Dec-12

17,252 7,655 9,597

15,985 7,474 8,511

2013

2012

16.4 35.3 11.8 29.5 (0.1)*

13.8 36.7 11.7 28.1 (0.1)*

Change 7.9% 2.4% 12.8%

* Cash and cash equivalents balance exceed the total debt at the end of period

LIQUIDITY 5IF $PNQBOZkT /FU DBTI Ã&#x2C6;PXT GSPN PQFSBUJOH BDUJWJUJFT JO XFSF #BIU NJMMJPO DPNQBSFE UP #BIU NJMMJPO JO 5IJT JODSFBTF XBT EVF UP BEEJUJPOBM DBTI GSPN PQFSBUJPOT PGGTFU CZ DIBOHFT JO XPSLJOH DBQJUBM BOE EFDSFBTFE DPSQPSBUF JODPNF UBY QBJE /FU DBTI Ã&#x2C6;PXT VTFE JO JOWFTUNFOU BDUJWJUJFT XFSF #BIU NJMMJPO JO DPNQBSFE XJUI /FU DBTI Ã&#x2C6;PXT GSPN JOWFTUNFOU BDUJWJUJFT PG #BIU NJMMJPO JO 5IJT DIBOHF XBT EVF UP UIF OFU QSPDFFET PG #BIU NJMMJPO GSPN UIF TBMF PG UIF JOWFTUNFOU JO #BOHLPL $IBJO )PTQJUBM 1$- JO #BIU NJMMJPO BEEJUJPOBM POHPJOH DBQJUBM TQFOEJOH JO NPTUMZ BTTPDJBUFE XJUI UIF DBNQVT FYQBOTJPO BOE QSPDFFET SFDFJWFE GSPN UIF DBQJUBM SFEVDUJPO FYFSDJTF CZ #VNSVOHSBE *OUFSOBUJPOBM -JNJUFE PG #BIU NJMMJPO JO 5IF BCPWF XFSF TPNFXIBU PGGTFU CZ UIF QVSDIBTF PG BMM DPNNPO TIBSFT PG 3VFONPOHLPM $P -UE GPS #BIU NJMMJPO GPS UIF PXOFSTIJQ JO JUT MBOE BOE CVJMEJOHT MPDBUFE JO 4VLIVNWJU 4PJ BSFB UP GBDJMJUBUF UIF FYQBOTJPO PG DBQBDJUZ OFBS UIF NBJO DBNQVT JO 5IF $PNQBOZ SFQPSUFE /FU DBTI VTFE JO Ã&#x2021;OBODJOH BDUJWJUJFT PG #BIU NJMMJPO JO WFSTVT #BIU NJMMJPO JO NPTUMZ EVF UP B IJHIFS EJWJEFOE QBZNFOU JO PGGTFU CZ B #BIU NJMMJPO MPOH UFSN MPBO GSPN BO BTTPDJBUF JO "T B SFTVMU PG UIF BCPWF $BTI BOE DBTI FRVJWBMFOUT were Baht 5,857 million as at 31 December 2013, compared to Baht 6,034 million as at 31 December 2012. 5IF $PNQBOZkT -JRVJEJUZ SBUJP BOE 2VJDL SBUJP CPUI SFNBJOFE UIF TBNF ZFBS PWFS ZFBS BU Y BOE Y SFTQFDUJWFMZ

Unit: Million Baht $BTI 'MPX GSPN 0QFSBUJOH "DUJWJUJFT $BTI 'MPX GSPN VTFE JO *OWFTUJOH "DUJWJUJFT $BTI 'MPX GSPN VTFE JO 'JOBODJOH "DUJWJUJFT Net Increase in cash and cash equivalents Cash and cash equivalents at end of year -JRVJEJUZ 3BUJP Y

2VJDL 3BUJP Y

2013

2012

3,274 (2,068) (1,383) (177) 5,857

3,025 2,931 (1,179) 4,777 6,034

31-Dec-13

31-Dec-12

3.6 3.4

Annual Report 2013

Unit: Total Total Total

Bumrungrad Hospital Public Company Limited

4. CONTRACTUAL OBLIGATIONS (Unit: Million Baht)

Within 1 year -POH UFSN MPBO GSPN a related party -POH UFSN EFCFOUVSFT

176 176

As at 31 December 2013 'JYFE JOUFSFTU SBUFT 1-5 Over years 5 years Total

2,485 2,485

2,481 2,481

176 4,966 5,142

Effective interest rate QFS BOOVN

2.00 4.13-4.97

Under the terms and conditions of the debentures, the Company has to comply with certain restrictions and maintain DFSUBJO Ã&#x2021;OBODJBM SBUJPT XIJDI JODMVEF B NBJOUFOBODF PG B OFU EFCU UP FRVJUZ SBUJP OPU FYDFFEJOH C NBJOUFOBODF PG B OFU EFCU UP &#*5%" SBUJP OPU FYDFFEJOH

5. EXTRAORDINARY ITEMS %VSJOH UIF $PNQBOZ SFDPSEFE FYUSBPSEJOBSZ JUFNT BT GPMMPX 1) 0O +VMZ UIF $PNQBOZ TPME BMM PG JUT JOWFTUNFOU JO #BOHLPL $IBJO )PTQJUBM 1$- EPJOH CVTJOFTT BT l,BTFNSBE )PTQJUBM (SPVQm UPUBMJOH NJMMJPO TIBSFT JODMVEJOH TIBSFT SFDFJWFE CZ UIF $PNQBOZ BT B EJWJEFOE JO BU a price of Baht 9.15 for each share. The Company received proceeds from the share sale of Baht 4,482 million after EFEVDUJOH BQQMJDBCMF USBOTBDUJPO DPTUT BTTPDJBUFE XJUI UIF TBMF " QSF UBY HBJO PO TBMF PG #BIU NJMMJPO XBT QBSU PG UPUBM SFWFOVF BOE OFU QSPÃ&#x2021;U JO UIF DPOTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT JO 5BYFT JODVSSFE PO UIF TBMF XFSF #BIU NJMMJPO GPS "T B SFTVMU B OFU HBJO PO UIF TBMF PG #BIU NJMMJPO JT JODMVEFE JO OFU QSPÃ&#x2021;U 5IF TBMF PG UIJT JOWFTUNFOU XBT NBEF JO BDDPSEBODF XJUI B SFTPMVUJPO PG UIF $PNQBOZkT #PBSE PG %JSFDUPST .FFUJOH IFME PO +VMZ *O UIF $PNQBOZ SFDPSEFE UIF 4IBSF PG MPTT GSPN #VNSVOHSBE *OUFSOBUJPOBM -JNJUFE XIJDI JODMVEFE UIF DBQJUBM HBJO UBYFT BOE UBY BEWJTPSZ TFSWJDFT PG #BIU NJMMJPO BTTPDJBUFE XJUI UIF TBMF PG JOWFTUNFOU JO "TJBO )PTQJUBM *OD B TVCTJEJBSZ XIJDI XBT TPME JO %FDFNCFS BT XFMM BT DFSUBJO XJOE EPXO DPTUT PG #VNSVOHSBE *OUFSOBUJPOBM -JNJUFE PG #BIU NJMMJPO #VNSVOHSBE *OUFSOBUJPOBM -JNJUFE IBE BQQMJFE GPS 5BY 5SFBUZ 3FMJFG PO UIF TBMF PG "TJBO )PTQJUBM *OD XIJDI XBT VMUJNBUFMZ OPU HSBOUFE JO UIF Ã&#x2021;OBM QIBTF PG UIF QSPDFTT USJHHFSJOH DBQJUBM HBJO UBYFT PO UIF USBOTBDUJPO

To the Shareholders of Bumrungrad Hospital Public Company Limited

5IF #PBSE PG %JSFDUPST BQQPJOUFE UIF "VEJU $PNNJUUFF DPOTJTUJOH FOUJSFMZ PG UISFF JOEFQFOEFOU EJSFDUPST PG UIF #PBSE .JTT 4PQIBWBEFF 6UUBNPCPM XBT BQQPJOUFE BT $IBJSQFSTPO XJUI .S 4PSBEJT 7JOZBSBUO BOE .S 1SJO $IJSBUIJWBU BT NFNCFST BOE .JTT 1BDDIBOZB $IVUJNBXPOH BT B TFDSFUBSZ PG UIF "VEJU $PNNJUUFF *UT NBJO EVUJFT BOE SFTQPOTJCJMJUJFT BSF UP SFWJFX Ã&#x2021;OBODJBM SFQPSUT JOUFSOBM BVEJU BOE DPOUSPM TZTUFNT SJTL NBOBHFNFOU TZTUFNT BOE UIF DPNQMJBODF XJUI MBXT BOE UP DPOTJEFS QPUFOUJBM DPOÃ&#x2C6;JDU PG JOUFSFTU USBOTBDUJPOT *O UIF ZFBS UIF "VEJU $PNNJUUFF IFME UPUBMMZ NFFUJOHT JODMVEJOH B NFFUJOH XJUI UIF JOEFQFOEFOU BVEJUPS XJUIPVU UIF QSFTFODF PG NBOBHFNFOU BMM PG XIJDI XFSF BUUFOEFE CZ BMM NFNCFST UP QFSGPSN JUT EVUJFT BOE SFTQPOTJCJMJUJFT JODMVEJOH UIF GPMMPXJOH NBKPS JTTVFT 3FWJFXFE UIF $PNQBOZ BOE JUT TVCTJEJBSJFTk Ã&#x2021;OBODJBM TUBUFNFOUT QSJPS UP TVCNJTTJPO UP UIF #PBSE PG %JSFDUPST #BTFE PO EVF DPOTJEFSBUJPO BGUFS EJTDVTTJPOT XJUI UIF FYFDVUJWFT B OPO NBOBHFNFOU NFFUJOH XJUI UIF $PNQBOZkT JOEFQFOEFOU BVEJUPS BOE DPOTJEFSBUJPO PG UIF BVEJUPSkT SFDPNNFOEBUJPOT JO UIF .BOBHFNFOU -FUUFS UIF "VEJU $PNNJUUFF IBT UIF PQJOJPO UIBU UIF BCPWF Ã&#x2021;OBODJBM TUBUFNFOUT BSF QSFQBSFE BDDVSBUFMZ DPNQMFUFMZ BOE DSFEJUBCMZ 2. Reviewed and assessed the internal control systems. The Audit Committee has the opinion that the Company has appropriate, FGGFDUJWF BOE BEFRVBUF TZTUFNT TVÃ¨DJFOU UP NJUJHBUF JUT SJTLT UP UIF BDDFQUBCMF MFWFM BOE IFMQ UIF $PNQBOZ BDIJFWF JUT PQFSBUJPO HPBMT 3FWJFXFE UIF DPNQMJBODF XJUI MBXT BOE SFHVMBUJPOT SFMBUJOH UP UIF $PNQBOZkT CVTJOFTT PQFSBUJPOT 5IF "VEJU $PNNJUUFF IBT UIF PQJOJPO UIBU UIF $PNQBOZ IBT OP MFHBM WJPMBUJPO UIBU NBZ TJHOJÃ&#x2021;DBOUMZ BGGFDU UIF $PNQBOZkT SFQVUBUJPO BOE Ã&#x2021;OBODJBM TUBUVT 4. Considered, selected, and nominated the Companyâ&#x20AC;&#x2122;s independent auditor, which is Miss Sumalee Reewarabandith and/ PS .JTT 7JTTVUB +BSJZBUIBOBLPSO BOE PS .S 5FSNQIPOH 0QBOBQIBO GSPN &SOTU BOE :PVOH 0Ã¨DF -JNJUFE BOE QSPQPTFE her remuneration to the Board. $POTJEFSFE DPOOFDUFE USBOTBDUJPOT PS QPUFOUJBM DPOÃ&#x2C6;JDU PG JOUFSFTU USBOTBDUJPOT 5IF "VEJU $PNNJUUFF IBT UIF PQJOJPO UIBU all such transactions were the Companyâ&#x20AC;&#x2122;s normal business transactions. 6. Considered and approved the internal audit plan, which were determined to be suitable for the Companyâ&#x20AC;&#x2122;s nature of CVTJOFTT JODMVEJOH JUT BENJOJTUSBUJWF QPMJDJFT CVTJOFTT QMBOT XPSL QSPDFTTFT BOE CVTJOFTT SJTLT $POTJEFSFE BOE BQQSPWFE UIF $PSQPSBUF *OUFSOBM "VEJU %JWJTJPOkT ZFBSMZ FYQFOEJUVSF CVEHFU BOE NBOQPXFS SFRVJSFNFOUT 1SPNPUFE DPOUJOVJOH FEVDBUJPO GPS BMM NFNCFST PG UIF "VEJU $PNNJUUFF CZ BUUFOEJOH QSPGFTTJPOBM TFNJOBST JO PSEFS UP PCUBJO TVÃ¨DJFOU LOPXMFEHF UP SFWJFX UIF SFMJBCJMJUZ PG Ã&#x2021;OBODJBM TUBUFNFOUT 9. Reviewed and reassessed the Audit Committee Charter, and proposed to the Board of Directors for approval. In 2013, UIF "VEJU $PNNJUUFF XBT HSBOUFE BVUIPSJUJFT UP QSPNPUF BOE TVQQPSU UIF PSHBOJ[BUJPOBM JOEFQFOEFODF PG UIF JOUFSOBM audit activity. 10. Approved the revised Internal Audit Charter. 5IF "VEJU $PNNJUUFF IBT QFSGPSNFE JUT EVUJFT BOE SFTQPOTJCJMJUJFT BT EFMFHBUFE CZ UIF $PNQBOZkT #PBSE PG %JSFDUPST XJUI DBSF BOE BU JUT GVMMFTU DBQBCJMJUZ GPS UIF CFOFÃ&#x2021;UT PG UIF $PNQBOZ UIF TIBSFIPMEFST BOE BMM UIF TUBLFIPMEFST

Miss Sophavadee Uttamobol Chairperson of Audit Committee 17 February 2014

Annual Report 2013

Report of the Audit Committee

Bumrungrad Hospital Public Company Limited

Report of the Accountability of the Board of Directors to the Companyâ&#x20AC;&#x2122;s Financial Reports 5IF #PBSE PG %JSFDUPST JT SFTQPOTJCMF GPS UIF DPOTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT PG UIF $PNQBOZ BOE JUT TVCTJEJBSJFT BOE JOGPSNBUJPO BT BQQFBST JO UIF BOOVBM SFQPSU 5IF Ã&#x2021;OBODJBM TUBUFNFOUT IBWF CFFO QSFQBSFE JO BDDPSEBODF XJUI UIF HFOFSBMMZ BDDFQUFE BDDPVOUJOH QSJODJQMFT VTJOH BQQSPQSJBUF BOE DPOTJTUFOU BDDPVOUJOH QPMJDJFT 5IF Ã&#x2021;OBODJBM TUBUFNFOUT IBWF CFFO QSFQBSFE XJUI DBVUJPO BOE IBWF CFFO FWBMVBUFE GPS BQQSPQSJBUFOFTT PG UIF PWFSBMM QSFTFOUBUJPO PG UIF Ã&#x2021;OBODJBM TUBUFNFOU 5IFSF XBT TVÃ¨DJFOU JOGPSNBUJPO EJTDMPTVSF JO UIF OPUFT UP UIF Ã&#x2021;OBODJBM TUBUFNFOUT 5IF #PBSE PG %JSFDUPST IBT TFU VQ BO FÃ¨DJFOU BOE FGGFDUJWF JOUFSOBM DPOUSPM TZTUFN UP FOTVSF UIBU BMM BDDPVOUJOH USBOTBDUJPOT IBWF CFFO SFDPSEFE DPSSFDUMZ BOE DPNQSFIFOTJWFMZ BOE UIBU UIFSF IBT CFFO B SFDPSE LFFQJOH TZTUFN PG BTTFUT UP QSPUFDU UIF $PNQBOZ GSPN BOZ NBUFSJBM GSBVE PS EBNBHF The Board of Directors has the opinion that the overall internal control system of the Company was at a satisfactory level, which SFTVMUFE JO DPOÃ&#x2021;EFODF JO UIF SFMJBCJMJUZ PG UIF Ã&#x2021;OBODJBM TUBUFNFOUT PG UIF $PNQBOZ BOE JUT TVCTJEJBSJFT BT BU %FDFNCFS

Mr. Chai Sophonpanich Chairperson

Mrs. Linda Lisahapanya .BOBHJOH %JSFDUPS

Annual Report 2013

Bumrungrad Hospital Public Company Limited and its subsidiaries 9LWVY[ HUK JVUZVSPKH[LK Ă&#x201E;UHUJPHS Z[H[LTLU[Z 31 December 2013

Bumrungrad Hospital Public Company Limited

Independent Auditorâ&#x20AC;&#x2122;s Report To the Shareholders of Bumrungrad Hospital Public Company Limited * IBWF BVEJUFE UIF BDDPNQBOZJOH DPOTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT PG #VNSVOHSBE )PTQJUBM 1VCMJD $PNQBOZ -JNJUFE BOE JUT TVCTJEJBSJFT XIJDI DPNQSJTF UIF DPOTPMJEBUFE TUBUFNFOU PG Ã&#x2021;OBODJBM QPTJUJPO BT BU %FDFNCFS BOE UIF SFMBUFE DPOTPMJEBUFE TUBUFNFOUT PG JODPNF DPNQSFIFOTJWF JODPNF DIBOHFT JO TIBSFIPMEFSTk FRVJUZ BOE DBTI Ã&#x2C6;PXT GPS UIF ZFBS UIFO FOEFE BOE B TVNNBSZ PG TJHOJÃ&#x2021;DBOU BDDPVOUJOH QPMJDJFT BOE PUIFS FYQMBOBUPSZ JOGPSNBUJPO BOE IBWF BMTP BVEJUFE UIF TFQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT PG #VNSVOHSBE )PTQJUBM 1VCMJD $PNQBOZ -JNJUFE GPS UIF TBNF QFSJPE Managementâ&#x20AC;&#x2122;s Responsibility for the Financial Statements .BOBHFNFOU JT SFTQPOTJCMF GPS UIF QSFQBSBUJPO BOE GBJS QSFTFOUBUJPO PG UIFTF Ã&#x2021;OBODJBM TUBUFNFOUT JO BDDPSEBODF XJUI 5IBJ 'JOBODJBM 3FQPSUJOH 4UBOEBSET BOE GPS TVDI JOUFSOBM DPOUSPM BT NBOBHFNFOU EFUFSNJOFT JT OFDFTTBSZ UP FOBCMF UIF QSFQBSBUJPO PG Ã&#x2021;OBODJBM statements that are free from material misstatement, whether due to fraud or error. Auditorâ&#x20AC;&#x2122;s Responsibility .Z SFTQPOTJCJMJUZ JT UP FYQSFTT BO PQJOJPO PO UIFTF Ã&#x2021;OBODJBM TUBUFNFOUT CBTFE PO NZ BVEJU * DPOEVDUFE NZ BVEJU JO BDDPSEBODF XJUI 5IBJ 4UBOEBSET PO "VEJUJOH 5IPTF TUBOEBSET SFRVJSF UIBU * DPNQMZ XJUI FUIJDBM SFRVJSFNFOUT BOE QMBO BOE QFSGPSN UIF BVEJU UP PCUBJO SFBTPOBCMF BTTVSBODF BCPVU XIFUIFS UIF Ã&#x2021;OBODJBM TUBUFNFOUT BSF GSFF GSPN NBUFSJBM NJTTUBUFNFOU "O BVEJU JOWPMWFT QFSGPSNJOH QSPDFEVSFT UP PCUBJO BVEJU FWJEFODF BCPVU UIF BNPVOUT BOE EJTDMPTVSFT JO UIF Ã&#x2021;OBODJBM TUBUFNFOUT 5IF QSPDFEVSFT TFMFDUFE EFQFOE PO UIF BVEJUPSkT KVEHNFOU JODMVEJOH UIF BTTFTTNFOU PG UIF SJTLT PG NBUFSJBM NJTTUBUFNFOU PG UIF Ã&#x2021;OBODJBM TUBUFNFOUT XIFUIFS EVF UP GSBVE PS FSSPS *O NBLJOH UIPTF SJTL BTTFTTNFOUT UIF BVEJUPS DPOTJEFST JOUFSOBM DPOUSPM SFMFWBOU UP UIF FOUJUZkT QSFQBSBUJPO BOE GBJS QSFTFOUBUJPO PG UIF Ã&#x2021;OBODJBM TUBUFNFOUT JO PSEFS UP EFTJHO BVEJU QSPDFEVSFT UIBU BSF BQQSPQSJBUF JO UIF DJSDVNTUBODFT CVU OPU GPS UIF QVSQPTF PG FYQSFTTJOH BO PQJOJPO PO UIF FGGFDUJWFOFTT PG UIF FOUJUZkT JOUFSOBM DPOUSPM "O BVEJU BMTP JODMVEFT FWBMVBUJOH UIF BQQSPQSJBUFOFTT PG BDDPVOUJOH QPMJDJFT VTFE BOE UIF SFBTPOBCMFOFTT PG BDDPVOUJOH FTUJNBUFT NBEF CZ NBOBHFNFOU BT XFMM BT FWBMVBUJOH UIF PWFSBMM QSFTFOUBUJPO PG UIF Ã&#x2021;OBODJBM TUBUFNFOUT

* CFMJFWF UIBU UIF BVEJU FWJEFODF * IBWF PCUBJOFE JT TVÃ¨DJFOU BOE BQQSPQSJBUF UP QSPWJEF B CBTJT GPS NZ BVEJU PQJOJPO

Opinion *O NZ PQJOJPO UIF Ã&#x2021;OBODJBM TUBUFNFOUT SFGFSSFE UP BCPWF QSFTFOU GBJSMZ JO BMM NBUFSJBM SFTQFDUT UIF Ã&#x2021;OBODJBM QPTJUJPO PG #VNSVOHSBE )PTQJUBM 1VCMJD $PNQBOZ -JNJUFE BOE JUT TVCTJEJBSJFT BOE PG #VNSVOHSBE )PTQJUBM 1VCMJD $PNQBOZ -JNJUFE BT BU %FDFNCFS BOE UIFJS Ã&#x2021;OBODJBM QFSGPSNBODF BOE DBTI Ã&#x2C6;PXT GPS UIF ZFBS UIFO FOEFE JO BDDPSEBODF XJUI 5IBJ 'JOBODJBM 3FQPSUJOH 4UBOEBSET Emphasis of matters * ESBX BUUFOUJPO UP UIF GPMMPXJOH OPUFT UP UIF Ã&#x2021;OBODJBM TUBUFNFOUT B /PUF UP UIF Ã&#x2021;OBODJBM TUBUFNFOUT SFHBSEJOH UIF DIBOHF JO BDDPVOUJOH QPMJDZ EVF UP UIF BEPQUJPO PG 5IBJ "DDPVOUJOH 4UBOEBSE *ODPNF 5BYFT 5IF $PNQBOZ IBT SFTUBUFE UIF DPOTPMJEBUFE BOE TFQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT GPS UIF ZFBS FOEFE %FDFNCFS QSFTFOUFE IFSFJO BT DPNQBSBUJWF JOGPSNBUJPO UP SFÃ&#x2C6;FDU UIF BEKVTUNFOUT SFTVMUJOH GSPN TVDI DIBOHF 5IF $PNQBOZ IBT BMTP QSFTFOUFE UIF DPOTPMJEBUFE BOE TFQBSBUF TUBUFNFOUT PG Ã&#x2021;OBODJBM QPTJUJPO BT BU +BOVBSZ BT DPNQBSBUJWF JOGPSNBUJPO VTJOH UIF OFXMZ BEPQUFE BDDPVOUJOH QPMJDZ GPS JODPNF UBYFT .Z PQJOJPO JT OPU RVBMJÃ&#x2021;FE JO SFTQFDU of this matter. C /PUF UP UIF Ã&#x2021;OBODJBM TUBUFNFOUT SFHBSEJOH UIF DIBOHF JO BDDPVOUJOH FTUJNBUJPO DIBOHFT JO UIF FTUJNBUFE VTFGVM MJWFT PG DFSUBJO BTTFUT JO PSEFS UP BDDPSE XJUI UIF $PNQBOZkT DBNQVT FYQBOTJPO QMBO BOE UIF (SPVQkT FTUJNBUFE VTFGVM MJWFT QPMJDZ 5IF (SPVQ IBT BQQMJFE UIF DIBOHFT JO FTUJNBUFE VTFGVM MJWFT PG BTTFUT QSPTQFDUJWFMZ .Z PQJOJPO JT OPU RVBMJÃ&#x2021;FE JO SFTQFDU of this matter.

Sumalee Reewarabandith $FSUJÃ&#x2021;FE 1VCMJD "DDPVOUBOU 5IBJMBOE No. 3970

&SOTU :PVOH 0Ã¨DF -JNJUFE #BOHLPL 'FCSVBSZ

AS AT 31 DECEMBER 2013

Note

(Unit: Baht) Separate Ă&#x2021;nancial statements Consolidated Ă&#x2021;nancial statements As at As at As at As at As at As at 31 December 31 December +BOVBSZ 31 December 31 December +BOVBSZ 2013 2012 2012 2013 2012 2012 (restated) (restated)

Assets Current assets Cash and cash equivalents

5,857,210,842 6,034,143,584 1,260,730,653 5,712,060,469 5,940,595,542 1,186,267,376

Trade and other receivables

1,306,952,532 1,335,000,025 1,126,061,134 1,302,241,015 1,333,162,524 1,125,459,913

Short-term loan to and interest receivable from a related party

664,623

304,537,841

233,750,762

265,739,534

294,037,530

224,785,095

258,702,724

1SFQBJE FYQFOTFT

49,940,092

52,359,335

48,621,170

46,228,410

50,242,508

46,392,805

Other current assets

33,194,904

14,449,235

3,134,079

31,330,852

12,510,251

3,979,135

Inventories

Total current assets

7,551,836,211 7,669,702,941 2,704,286,570 7,385,898,276 7,561,295,920 2,621,466,576

Non-current assets -POH UFSN MPBO UP B SFMBUFE QBSUZ

Investments in subsidiaries

- 1,102,250,347 1,092,245,887

100,585,507

Investments in associates

234,586,180

0UIFS MPOH UFSN JOWFTUNFOUT

1,700,000

1SPQFSUZ QMBOU BOE FRVJQNFOU

*OUBOHJCMF BTTFUT

Other non-current assets %FGFSSFE UBY BTTFUT

237,744,698 4,251,254,988 1,700,000

1,900,000

1,855,253

7,109,760

7,109,760 3,939,040,872

1,700,000

9,095,692,909 7,683,003,847 6,241,553,191 8,082,024,242 6,666,243,186 6,273,421,626 189,298,316

235,973,324

256,204,360

202,979,863

253,588,714

277,461,207

27,459,050

33,629,170

17,347,530

27,430,550

33,619,171

17,207,635

150,956,742

122,952,252

218,431,097

150,725,884

122,573,024

217,787,298

Total non-current assets

9,699,693,197 8,315,003,291 10,986,691,166 9,576,075,899 8,177,079,742 10,827,204,145

Total assets

17,251,529,408 15,984,706,232 13,690,977,736 16,961,974,175 15,738,375,662 13,448,670,721

5IF BDDPNQBOZJOH OPUFT BSF BO JOUFHSBM QBSU PG UIF Ă&#x2021;OBODJBM TUBUFNFOUT

Annual Report 2013

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 45"5&.&/5 0' '*/"/$*"- 104*5*0/

Bumrungrad Hospital Public Company Limited

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 45"5&.&/5 0' '*/"/$*"- 104*5*0/ $0/5*/6&%

AS AT 31 DECEMBER 2013

Note

Liabilities and shareholdersâ&#x20AC;&#x2122; equity Current liabilities Trade and other payables

858,881,919

799,949,180

602,684,350

850,388,711

795,374,606

600,876,425

Accrued physiciansâ&#x20AC;&#x2122; fees

488,245,603

502,738,211

452,054,931

483,325,480

498,244,832

448,591,363

"DDSVFE FYQFOTFT

384,507,691

394,061,036

269,107,115

380,366,250

388,595,256

267,667,696

*ODPNF UBY QBZBCMF

329,138,563

372,558,595

124,932,284

324,151,673

368,903,770

122,954,657

64,324,570

68,314,929

57,208,049

56,566,871

55,386,350

50,242,326

Other current liabilities Total current liabilities

2,125,098,346 2,137,621,951 1,505,986,729 2,094,798,985 2,106,504,814 1,490,332,467

Non-current liabilities -POH UFSN MPBO GSPN B SFMBUFE QBSUZ

-POH UFSN EFCFOUVSFT

1SPWJTJPO GPS MPOH UFSN FNQMPZFF CFOFĂ&#x2021;UT

176,400,000

4,966,090,116 4,960,466,455 4,954,926,250 4,966,090,116 4,960,466,455 4,954,926,250 386,976,265

376,129,519

277,760,646

386,010,590

374,209,377

272,952,698

Total non-current liabilities

5,529,466,381 5,336,595,974 5,232,686,896 5,528,500,706 5,334,675,832 5,227,878,948

Total liabilities

7,654,564,727 7,474,217,925 6,738,673,625 7,623,299,691 7,441,180,646 6,718,211,415

5IF BDDPNQBOZJOH OPUFT BSF BO JOUFHSBM QBSU PG UIF Ă&#x2021;OBODJBM TUBUFNFOUT

AS AT 31 DECEMBER 2013 (Unit: Baht) Separate Ă&#x2021;nancial statements Consolidated Ă&#x2021;nancial statements As at As at As at As at As at As at 31 December 31 December +BOVBSZ 31 December 31 December +BOVBSZ 2013 2012 2012 2013 2012 2012 Note (restated) (restated) Shareholdersâ&#x20AC;&#x2122; equity Share capital

3FHJTUFSFE 921,211,022 ordinary shares of Baht 1 each (2012: 921,043,709 ordinary shares of Baht 1 each)

921,211,022

921,043,709

921,034,085

921,211,022

921,043,709

921,034,085

1,491,663

1,658,976

1,668,600

1,491,663

1,658,976

1,668,600

922,702,685

728,560,559

728,393,246

728,383,622

728,560,559

728,393,246

728,383,622

1,491,663

1,658,976

1,668,600

1,491,663

1,658,976

1,668,600

730,052,222

285,568,300

550,000,000

92,275,000

1,491,663 preference shares of Baht 1 each (2012: 1,658,976 preference shares of Baht 1 each) Issued and paid-up 728,560,559 ordinary shares of Baht 1 each (2012: 728,393,246 ordinary shares of Baht 1 each) 1,491,663 preference shares of Baht 1 each (2012: 1,658,976 preference shares of Baht 1 each) 1SFNJVN PO PSEJOBSZ TIBSFT Convertible bonds treated as equity securities 3FUBJOFE FBSOJOHT Appropriated - statutory reserve Unappropriated Other components of shareholdersâ&#x20AC;&#x2122; equity Equity attributable to owners of the Company /PO DPOUSPMMJOH JOUFSFTUT PG UIF TVCTJEJBSZ

7,695,106,552 6,608,286,853 5,240,978,241 7,680,778,962 6,639,299,494 5,072,563,784 243,962,607

244,305,932

51,297,471

9,596,964,681 8,510,488,307 6,950,171,234 9,338,674,484 8,297,195,016 6,730,459,306 -

2,132,877

Total shareholdersâ&#x20AC;&#x2122; equity

9,596,964,681 8,510,488,307 6,952,304,111 9,338,674,484 8,297,195,016 6,730,459,306

Total liabilities and shareholdersâ&#x20AC;&#x2122; equity

17,251,529,408 15,984,706,232 13,690,977,736 16,961,974,175 15,738,375,662 13,448,670,721

5IF BDDPNQBOZJOH OPUFT BSF BO JOUFHSBM QBSU PG UIF Ă&#x2021;OBODJBM TUBUFNFOUT

Annual Report 2013

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 45"5&.&/5 0' '*/"/$*"- 104*5*0/ $0/5*/6&%

Bumrungrad Hospital Public Company Limited

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 INCOME STATEMENT '03 5)& :&"3 &/%&% %&$&.#&3

Note

Consolidated Ă&#x2021;nancial statements 2013 2012

(Unit: Baht) Separate Ă&#x2021;nancial statements 2013 2012

(restated)

Revenues 10 Revenues from hospital operations 10 Rental income Interest income Gain on sales of investments in a subsidiary 12.4, 13.3 and an associate &YDIBOHF HBJOT 10, 13.4 Dividend income 10 Other income Total revenues Expenses 10 Cost of hospital operations 10 "ENJOJTUSBUJWF FYQFOTFT 12 Loss on diminution in value of investment in a subsidiary 12.3 Loss from share capital reduction of a subsidiary 13.2 Loss from share capital reduction of an associate Total expenses ProĂ&#x2021;t before share of ProĂ&#x2021;t from investments in associates, Ă&#x2021;nance cost and income tax expenses 13.4 4IBSF PG QSPĂ&#x2021;U GSPN JOWFTUNFOU JO BTTPDJBUFT ProĂ&#x2021;t before Ă&#x2021;nance cost and income tax expenses 10 Finance cost ProĂ&#x2021;t before income tax expenses 25 *ODPNF UBY FYQFOTFT ProĂ&#x2021;t for the year

14,250,585,798 95,400,151

12,856,204,690 126,338,878

14,029,140,453 98,449,454

12,684,103,764 129,683,673

154,135,316

98,368,625

151,477,290

96,618,716

54,416,768 96,847,810

789,826,508 69,508,841 101,389,463

53,935,243 5,399,820 75,607,491

919,255,265 69,629,812 49,874,880 92,426,496

14,651,385,843

14,041,637,005

14,414,009,751

14,041,592,606

8,836,088,013 2,527,116,057 -

8,242,006,903 2,294,947,450 -

8,727,032,586 2,448,094,386 -

8,148,242,588 2,235,464,951 49,999,970 1,071,691 7,254,775

11,363,204,070

10,536,954,353

11,175,126,972

10,442,033,975

3,288,181,773 5,881,985

3,504,682,652 93,343,456

3,238,882,779 -

3,599,558,631 -

3,294,063,758 (147,873,616)

3,598,026,108 (240,750,343)

3,238,882,779 (147,873,616)

3,599,558,631 (240,750,341)

3,146,190,142 (625,407,873)

3,357,275,765 (798,763,553)

3,091,009,163 (615,450,311)

3,358,808,290 (792,078,157)

2,520,782,269

2,558,512,212

2,475,558,852

2,566,730,133

2,520,782,269 2,520,782,269

2,557,792,686 719,526 2,558,512,212

2,475,558,852

2,566,730,133

3.46

3.51

3.40

3.52

2.91

2.95

2.85

2.96

ProĂ&#x2021;t attributable to: Equity holders of the Company /PO DPOUSPMMJOH JOUFSFTUT PG UIF TVCTJEJBSZ Earnings per share #BTJD FBSOJOHT QFS TIBSF 1SPĂ&#x2021;U BUUSJCVUBCMF UP FRVJUZ IPMEFST PG UIF $PNQBOZ %JMVUFE FBSOJOHT QFS TIBSF 1SPĂ&#x2021;U BUUSJCVUBCMF UP FRVJUZ IPMEFST PG UIF $PNQBOZ

5IF BDDPNQBOZJOH OPUFT BSF BO JOUFHSBM QBSU PG UIF Ă&#x2021;OBODJBM TUBUFNFOUT

(restated)

'03 5)& :&"3 &/%&% %&$&.#&3 Consolidated Ă&#x2021;nancial statements 2013 2012

(Unit: Baht) Separate Ă&#x2021;nancial statements 2013 2012

(restated)

ProĂ&#x2021;t for the year

(restated)

2,520,782,269

2,558,512,212

2,475,558,852

2,566,730,133

(343,325)

346,903

(14,377,187)

(52,823,930)

(14,494,001)

(54,995,837)

(14,720,512)

(52,477,027)

(14,494,001)

(54,995,837)

Total comprehensive income for the year

2,506,061,757

2,506,035,185

2,461,064,851

2,511,734,296

Total comprehensive income attributable to: Equity holders of the Company /PO DPOUSPMMJOH JOUFSFTUT PG UIF TVCTJEJBSZ

2,506,061,757

2,505,315,659

2,461,064,851

2,511,734,296

719,526

2,506,061,757

2,506,035,185

2,461,064,851

2,511,734,296

Other comprehensive income: &YDIBOHF EJGGFSFODFT PO USBOTMBUJPO PG Ă&#x2021;OBODJBM TUBUFNFOUT JO GPSFJHO DVSSFODJFT "DUVBSJBM MPTT SFDPHOJTFE EVSJOH UIF ZFBS OFU PG JODPNF UBY Other comprehensive income for the year

5IF BDDPNQBOZJOH OPUFT BSF BO JOUFHSBM QBSU PG UIF Ă&#x2021;OBODJBM TUBUFNFOUT

Annual Report 2013

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 45"5&.&/5 0' $0.13&)&/4*7& */$0.&

Bumrungrad Hospital Public Company Limited

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 $"4) '-08 45"5&.&/5 '03 5)& :&"3 &/%&% %&$&.#&3

(Unit: Baht) Separate Ã&#x2021;nancial statements 2013 2012

Consolidated Ã&#x2021;nancial statements 2013 2012 Cash Ã&#x2C6;oXs from operating activities 1SPÃ&#x2021;U CFGPSF UBY "EKVTUNFOUT UP SFDPODJMF QSPÃ&#x2021;U CFGPSF UBY UP OFU DBTI QSPWJEFE CZ QBJE GSPN PQFSBUJOH BDUJWJUJFT Depreciation and amortisation Allowance for loss on impairment of assets (reversal) Bad debts and allowance for doubtful accounts Loss on sales and write-off of equipment -POH UFSN FNQMPZFF CFOFÃ&#x2021;UT FYQFOTFT Loss on diminution in value of investment in a subsidiary Loss from share capital reduction of a subsidiary Loss from share capital reduction of an associate Gain on sales of investments 4IBSF PG QSPÃ&#x2021;U GSPN JOWFTUNFOUT JO BTTPDJBUFT Interest income Dividend income "NPSUJTBUJPO PG EFCFOUVSF JTTVJOH DPTUT UP JOUFSFTU FYQFOTF *OUFSFTU FYQFOTF 1SPÃ&#x2021;U GSPN PQFSBUJOH BDUJWJUJFT CFGPSF DIBOHFST JO PQFSBUJOH BTTFUT BOE MJBCJMJUJFT 0QFSBUJOH BTTFUT JODSFBTF EFDSFBTF Trade and other receivables Inventories 1SFQBJE FYQFOTFT Other current assets Other non-current assets 0QFSBUJOH MJBCJMJUJFT JODSFBTF EFDSFBTF

Trade and other payables Accrued physiciansâ&#x20AC;&#x2122; fees "DDSVFE FYQFOTFT Other current liabilities 1SPWJTJPO GPS MPOH UFSN FNQMPZFF CFOFÃ&#x2021;UT $BTI Ã&#x2C6;PXT GSPN PQFSBUJOH BDUJWJUJFT $BTI QBJE GPS DPSQPSBUF JODPNF UBY Net cash Ã&#x2C6;oXs from operating activities

3,146,190,142

3,357,275,765

3,091,009,163

3,358,808,290

882,266,424

709,080,399

878,792,080

707,048,927

(354,171)

593,552

(354,171)

593,552

23,940,010

15,108,263

28,547,808

21,641,917

2,643,232

11,747,739

2,643,232

11,887,926

22,437,942

56,734,989

19,433,178

56,642,613

49,999,970

1,071,691

7,254,775

(789,826,508)

(919,255,265)

(5,881,985)

(93,343,456)

(154,135,316)

(98,368,625)

(151,477,290)

(96,618,716)

(5,399,820)

(49,874,880)

5,623,661

5,540,205

5,623,661

5,540,205

142,249,955

235,210,137

142,249,955

235,210,136

4,064,979,894

3,409,752,460

4,011,067,796

3,389,951,141

4,107,483

(224,047,154)

2,373,701

(229,344,528)

(70,787,079)

31,988,772

(69,252,435)

33,917,629

2,419,243

(3,738,165)

4,014,098

(3,849,703)

(18,745,669)

(11,315,156)

(18,820,601)

(8,531,116)

6,170,120

(16,281,640)

6,188,621

(15,746,913)

38,205,260

118,296,949

34,286,626

115,530,300

(14,492,608)

50,683,280

(14,919,352)

49,653,469

(10,806,268)

124,953,921

(9,481,929)

120,927,560

(3,990,359)

11,106,880

1,180,521

5,144,024

(29,591,883)

(24,649,861)

(25,749,466)

(24,130,730)

3,967,468,134

3,466,750,286

3,920,887,580

3,433,521,133

(693,208,895)

(442,198,582)

(684,731,768)

(437,165,811)

3,274,259,239

3,024,551,704

3,236,155,812

2,996,355,322

5IF BDDPNQBOZJOH OPUFT BSF BO JOUFHSBM QBSU PG UIF Ã&#x2021;OBODJBM TUBUFNFOUT

'03 5)& :&"3 &/%&% %&$&.#&3

(Unit: Baht) Separate Ă&#x2021;nancial statements 2013 2012

Consolidated Ă&#x2021;nancial statements 2013 2012 Cash Ă&#x2C6;oXs from investing activities Acquisition of investment in a subsidiary -POH UFSN MPBO UP B SFMBUFE QBSUZ Dividend received Cash receipt from share capital reductions of a subsidiary and an associate Cash receipt from sales of investment in a subsidiary Cash receipt from sales of investment in an associate $BTI SFDFJQU GSPN TBMFT PG PUIFS MPOH UFSN JOWFTUNFOU Acquisition of property, plant and equipment and payment of construction and medical equipment payables Acquisition of computer software 1SPDFFET GSPN TBMFT PG FRVJQNFOU Decrease in cash and cash equivalents of a subsidiary at the disposal date Interest income Net cash Ă&#x2C6;oXs from (used in) investing activities Cash Ă&#x2C6;oXs from Ă&#x2021;nancing activities $BTI SFDFJQU GSPN MPOH UFSN MPBO GSPN B SFMBUFE QBSUZ *OUFSFTU QBJE GPS MPOH UFSN MPBO GSPN B SFMBUFE QBSUZ *OUFSFTU QBJE GPS MPOH UFSN EFCFOUVSFT Dividend paid Interest paid for convertible bonds treated as equity securities Net cash Ă&#x2C6;oXs used in Ă&#x2021;nancing activities Translation adjustment %FDSFBTF JO OPO DPOUSPMMJOH JOUFSFTUT PG B TVCTJEJBSZ due to the subsidiaryâ&#x20AC;&#x2122;s share capital reduction %FDSFBTF JO OPO DPOUSPMMJOH JOUFSFTUT PG B TVCTJEJBSZ due to sales of investment in a subsidiary Net increase (decrease) in cash and cash equivalents $BTI BOE DBTI FRVJWBMFOUT BU CFHJOOJOH PG ZFBS Cash and cash equivalents at end of year

5,399,820

(1,045,034,091) 49,874,880

(10,004,460) (1,855,253) 5,399,820

(1,045,034,091) 49,874,880

361,738,178 1,529,928 4,481,563,202 200,000

363,140,521 1,529,928 4,481,563,203 -

(2,217,856,279) (13,761,858) 4,436,256

(982,396,610) (37,275,985) 3,957,505

(2,217,590,813) (13,384,375) 4,436,256

(976,867,901) (37,210,005) 3,817,318

154,135,316 (2,067,646,745)

(1,526,763) 98,368,625 2,930,998,869

151,477,290 (2,081,521,535)

96,618,716 2,937,432,569

176,400,000 (1,663,718) (139,333,314) (1,386,072,318) (32,500,000) (1,383,169,350)

(235,210,137) (911,749,589) (32,500,000) (1,179,459,726)

176,400,000 (1,663,718) (139,333,314) (1,386,072,318) (32,500,000) (1,383,169,350)

(235,210,136) (911,749,589) (32,500,000) (1,179,459,725)

(375,886)

174,487

(1,347,456)

(176,932,742)

(1,504,947) 4,773,412,931

(228,535,073)

4,754,328,166

6,034,143,584 5,857,210,842

1,260,730,653 6,034,143,584

5,940,595,542 5,712,060,469

1,186,267,376 5,940,595,542

96,763,216

Supplemental cash Ă&#x2C6;oX information Non-cash transactions Interest recorded as cost of assets

5IF BDDPNQBOZJOH OPUFT BSF BO JOUFHSBM QBSU PG UIF Ă&#x2021;OBODJBM TUBUFNFOUT

Annual Report 2013

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 $"4) '-08 45"5&.&/5 $0/5*/6&%

34 -

EFGFSSFE UBY /PUFT BOE

(167,313)

728,560,559 1,491,663

167,313

728,393,246 1,658,976

5IF BDDPNQBOZJOH OPUFT BSF BO JOUFHSBM QBSU PG UIF Ă&#x2021;OBODJBM TUBUFNFOUT

Balance as at 31 December 2013

Total comprehensive income for the year (restated)

equity securities (Note 21)

Interest paid for convertible bonds treated as

Dividend paid (Note 29)

1SFGFSFODF TIBSFT DPOWFSUFE UP PSEJOBSZ TIBSFT /PUF

Balance as at 31 December 2012 - as restated

728,393,246 1,658,976

Balance as at 31 December 2012 - as previously reported

$VNVMBUJWF FGGFDU PG DIBOHF JO BDDPVOUJOH QPMJDZ GPS

728,393,246 1,658,976

(9,624)

Total comprehensive income for the year (restated)

9,624

728,383,622 1,668,600

285,568,300

Issued and paid-up share capital Ordinary 1SFGFSFODF 1SFNJVN PO shares shares ordinary shares

Balance as at 31 December 2012 - as restated

equity securities (Note 21)

Interest paid for convertible bonds treated as

Dividend paid (Note 29)

due to sales of investment in a subsidiary (Note 12.4)

%FDSFBTF JO OPO DPOUSPMMJOH JOUFSFTUT PG B TVCTJEJBSZ

due to reduction of the subsidiaryâ&#x20AC;&#x2122;s share capital (Note 12.3)

%FDSFBTF JO OPO DPOUSPMMJOH JOUFSFTUT PG B TVCTJEJBSZ

1SFGFSFODF TIBSFT DPOWFSUFE UP PSEJOBSZ TIBSFT /PUF

due to sales of investment in a subsidiary

%FDSFBTF JO FYDFTT PG JOWFTUNFOU PWFS CPPL WBMVF PG B TVCTJEJBSZ

Balance as at 31 December 2011 - as restated

EFGFSSFE UBY /PUFT BOE

$VNVMBUJWF FGGFDU PG DIBOHF JO BDDPVOUJOH QPMJDZ GPS

- as previously reported

Balance as at 31 December 2011

'03 5)& :&"3 &/%&% %&$&.#&3

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 45"5&.&/5 0' $)"/(&4 */ 4)"3&)0-%&34k &26*5:

550,000,000

Convertible bonds treated as equity securities

92,275,000

Appropriated

7,695,106,552

2,506,405,082

(32,500,000)

(1,387,085,383)

6,608,286,853

122,952,252

6,485,334,601

6,608,286,853

2,504,968,756

(32,500,000)

(912,498,586)

(192,661,558)

5,240,978,241

218,431,097

5,022,547,144

Unappropriated

3FUBJOFE FBSOJOHT

(8,209,927)

(343,325)

(7,866,602)

346,903

(8,213,505)

192,661,558

(192,661,558)

252,172,534

Other components of shareholdersâ&#x20AC;&#x2122; equity Other comprehensive income Other paid-in &YDFTT PG &YDIBOHF EJGGFSFODFT capital of an investment over on translation of associated Ă&#x2021;OBODJBM TUBUFNFOUT book value of a company subsidiary JO GPSFJHO DVSSFODZ

Equity attributable to oXners of the Company

Consolidated Ă&#x2021;nancial statements

243,962,607

(343,325)

244,305,932

346,903

192,661,558

51,297,471

Total other components of shareholdersâ&#x20AC;&#x2122; equity

9,596,964,681

2,506,061,757

(32,500,000)

(1,387,085,383)

8,510,488,307

122,952,252

8,387,536,055

8,510,488,307

2,505,315,659

(32,500,000)

(912,498,586)

6,950,171,234

218,431,097

6,731,740,137

Total equity attributable to owners of the Company

719,526

(1,504,947)

(1,347,456)

2,132,877

Equity attributable UP OPO DPOUSPMMJOH interests of the subsidiary

9,596,964,681

2,506,061,757

(32,500,000)

(1,387,085,383)

8,510,488,307

122,952,252

8,387,536,055

8,510,488,307

2,506,035,185

(32,500,000)

(912,498,586)

(1,504,947)

(1,347,456)

6,952,304,111

218,431,097

6,733,873,014

Total shareholdersâ&#x20AC;&#x2122; equity

(Unit: Baht)

Bumrungrad Hospital Public Company Limited

1,658,976 (167,313) 1,491,663

167,313 728,560,559

1,658,976

728,393,246

(9,624) -

9,624 -

1,658,976

1,668,600

728,383,622

728,393,246

1,668,600

728,383,622

Issued and paid-up share capital Ordinary shares 1SFGFSFODF TIBSFT

5IF BDDPNQBOZJOH OPUFT BSF BO JOUFHSBM QBSU PG UIF Ă&#x2021;OBODJBM TUBUFNFOUT

Balance as at 31 December 2012 - as previously reported $VNVMBUJWF FGGFDU PG DIBOHF JO BDDPVOUJOH QPMJDZ GPS EFGFSSFE UBY /PUFT BOE

Balance as at 31 December 2012 - as restated 1SFGFSFODF TIBSFT DPOWFSUFE UP PSEJOBSZ TIBSFT /PUF

Dividend paid (Note 29) Interest paid for convertible bonds treated as equity securities (Note 21) Total comprehensive income for the year Balance as at 31 December 2013

Balance as at 31 December 2011 - as previously reported $VNVMBUJWF FGGFDU PG DIBOHF JO BDDPVOUJOH QPMJDZ GPS EFGFSSFE UBY /PUFT BOE

Balance as at 31 December 2011 - as restated 1SFGFSFODF TIBSFT DPOWFSUFE UP PSEJOBSZ TIBSFT /PUF

Dividend paid (Note 29) Interest paid for convertible bonds treated as equity securities (Note 21) Total comprehensive income for the year (restated) Balance as at 31 December 2012 - as restated

'03 5)& :&"3 &/%&% %&$&.#&3

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 45"5&.&/5 0' $)"/(&4 */ 4)"3&)0-%&34k &26*5: $0/5*/6&%

285,568,300

550,000,000

92,275,000

(32,500,000) 2,461,064,851 7,680,778,962

(1,387,085,383)

122,573,024 6,639,299,494

6,516,726,470

(32,500,000) 2,511,734,296 6,639,299,494

(912,498,586)

217,787,298 5,072,563,784

4,854,776,486

Separate Ă&#x2021;nancial statements Convertible 1SFNJVN PO bonds treated as 3FUBJOFE FBSOJOHT ordinary shares equity securities Appropriated Unappropriated

Annual Report 2013

(32,500,000) 2,461,064,851 9,338,674,484

(1,387,085,383)

122,573,024 8,297,195,016

8,174,621,992

(32,500,000) 2,511,734,296 8,297,195,016

(912,498,586)

217,787,298 6,730,459,306

6,512,672,008

Total shareholdersâ&#x20AC;&#x2122; equity

(Unit: Baht)

Bumrungrad Hospital Public Company Limited

#6.36/(3"% )041*5"- 16#-*$ $0.1"/: -*.*5&% "/% *54 46#4*%*"3*&4 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2013 1. GENERAL INFORMATION #VNSVOHSBE )PTQJUBM 1VCMJD $PNQBOZ -JNJUFE lUIF $PNQBOZm JT B QVCMJD DPNQBOZ JODPSQPSBUFE BOE EPNJDJMFE JO 5IBJMBOE. 5IF $PNQBOZ JT QSJODJQBMMZ FOHBHFE JO IPTQJUBM CVTJOFTT JOWFTUNFOU JO PUIFS DPNQBOJFT BOE SFOUBM PG QSPQFSUJFT TFSWJDF 5IF SFHJTUFSFE PÃ¨DF PG UIF $PNQBOZ JT BU 4PJ /BOB /VB 4VLIVNWJU 3PBE ,MPOHUPFZ /VB 4VC %JTUSJDU 8BUUBOB %JTUSJDU #BOHLPL 2.

BASIS OF PREPARATION 5IF Ã&#x2021;OBODJBM TUBUFNFOUT IBWF CFFO QSFQBSFE JO BDDPSEBODF XJUI 5IBJ 'JOBOBJDM 3FQPSUJOH 4UBOEBSET FOVODJBUFE VOEFS UIF "DDPVOUJOH 1SPGFTTJPOT "DU # & BOE UIFJS QSFTFOUBUJPO IBT CFFO NBEF JO DPNQMJBODF XJUI UIF TUJQVMBUJPOT PG UIF /PUJÃ&#x2021;DBUJPO PG UIF %FQBSUNFOU PG #VTJOFTT %FWFMPQNFOU EBUFE 4FQUFNCFS JTTVFE VOEFS UIF "DDPVOUJOH Act B.E. 2543. 5IF Ã&#x2021;OBODJBM TUBUFNFOUT JO 5IBJ MBOHVBHF BSF UIF PÃ¨DJBM TUBUVUPSZ Ã&#x2021;OBODJBM TUBUFNFOUT PG UIF $PNQBOZ 5IF Ã&#x2021;OBODJBM TUBUFNFOUT JO &OHMJTI MBOHVBHF IBWF CFFO USBOTMBUFE GSPN UIF 5IBJ MBOHVBHF Ã&#x2021;OBODJBM TUBUFNFOUT 5IF Ã&#x2021;OBODJBM TUBUFNFOUT IBWF CFFO QSFQBSFE PO B IJTUPSJDBM DPTU CBTJT FYDFQU XIFSF PUIFSXJTF EJTDMPTFE JO UIF BDDPVOUJOH QPMJDJFT 2.2 Basis of consolidation B 5IF DPOTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT JODMVEF UIF Ã&#x2021;OBODJBM TUBUFNFOUT PG #VNSVOHSBE )PTQJUBM 1VCMJD $PNQBOZ -JNJUFE BOE UIF GPMMPXJOH TVCTJEJBSJFT lUIF (SPVQ Companyâ&#x20AC;&#x2122;s name

Vitallife Corporation Ltd. (VTL) "TJB (MPCBM )FBMUI -UE "()

Asia Global Research Co., Ltd. (AGR) 3VFONPOHLPM $P -UE 3.

-JGF BOE -POHFWJUZ -UE --(

Nature of business

)FBMUI DBSF DFOUFS Investment in healthcare business Clinical research service and sales of vaccine " IPMEJOH BOE SFOUJOH SFBM estate assets company Overseas investment

Country of incorporation

1FSDFOUBHF PG TIBSFIPMEJOH 2013 2012

Thailand )POH ,POH

100 100

Thailand

100

Thailand

100

)POH ,POH

100

C 4VCTJEJBSJFT BSF GVMMZ DPOTPMJEBUFE CFJOH UIF EBUF PO XIJDI UIF $PNQBOZ PCUBJOT DPOUSPM BOE DPOUJOVF UP CF consolidated until the date when such control ceases. c) 5IF Ã&#x2021;OBODJBM TUBUFNFOUT PG UIF TVCTJEJBSJFT BSF QSFQBSFE VTJOH UIF TBNF TJHOJÃ&#x2021;DBOU BDDPVOUJOH QPMJDJFT BT UIF $PNQBOZ E 5IF BTTFUT BOE MJBCJMJUJFT JO UIF Ã&#x2021;OBODJBM TUBUFNFOUT PG PWFSTFBT TVCTJEJBSZ BSF USBOTMBUFE UP #BIU VTJOH UIF FYDIBOHF SBUF QSFWBJMJOH PO UIF FOE PG SFQPSUJOH QFSJPE BOE SFWFOVFT BOE FYQFOTFT USBOTMBUFE VTJOH NPOUIMZ BWFSBHF FYDIBOHF SBUFT 5IF SFTVMUJOH EJGGFSFODFT BSF TIPXO VOEFS UIF DBQUJPO PG l&YDIBOHF EJGGFSFODFT PO USBOTMBUJPO PG Ã&#x2021;OBODJBM TUBUFNFOUT JO GPSFJHO DVSSFODJFTm JO UIF TUBUFNFOU PG DIBOHFT JO TIBSFIPMEFSTk FRVJUZ e) Material balances and transactions between the Company and its subsidiaries have been eliminated from the DPOTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT G /PO DPOUSPMMJOH JOUFSFTUT SFQSFTFOU UIF QPSUJPO PG QSPÃ&#x2021;U PS MPTT BOE OFU BTTFUT PG UIF TVCTJEJBSJFT UIBU BSF OPU IFME CZ the Company and presented separately in the consolidated income statement and within equity in the consolidated TUBUFNFOU PG Ã&#x2021;OBODJBM QPTJUJPO 5IF TFQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT XIJDI QSFTFOU JOWFTUNFOUT JO TVCTJEJBSJFT BOE BTTPDJBUFT VOEFS UIF DPTU NFUIPE IBWF CFFO QSFQBSFE TPMFMZ GPS UIF CFOFÃ&#x2021;U PG UIF QVCMJD

5IFTF BDDPVOUJOH TUBOEBSET Ã&#x2021;OBODJBM SFQPSUJOH TUBOEBSE BDDPVOUJOH TUBOEBSE JOUFSQSFUBUJPOT BOE BDDPVOUJOH USFBUNFOU HVJEBODF EP OPU IBWF BOZ TJHOJÃ&#x2021;DBOU JNQBDU PO UIF Ã&#x2021;OBODJBM TUBUFNFOUT FYDFQU GPS UIF GPMMPXJOH BDDPVOUJOH TUBOEBSE

TAS 12 Income Taxes 5IJT BDDPVOUJOH TUBOEBSE SFRVJSFT BO FOUJUZ UP JEFOUJGZ UFNQPSBSZ EJGGFSFODFT CFUXFFO UIF DBSSZJOH BNPVOU PG BO BTTFU PS MJBCJMJUZ JO UIF TUBUFNFOU PG Ã&#x2021;OBODJBM QPTJUJPO BOE JUT UBY CBTF BOE SFDPHOJTF UIF UBY FGGFDUT BT EFGFSSFE UBY BTTFUT PS MJBCJMJUJFT TVCKFDUJOH UP DFSUBJO SFDPHOJUJPO DSJUFSJB 5IF (SPVQ IBT DIBOHFE UIJT BDDPVOUJOH QPMJDZ JO UIJT DVSSFOU QFSJPE BOE SFTUBUFE UIF QSJPS ZFBSkT Ã&#x2021;OBODJBM TUBUFNFOUT QSFTFOUFE BT DPNQBSBUJWF JOGPSNBUJPO BT UIPVHI UIF (SPVQ IBE JOJUJBMMZ SFDPHOJTFE UIF UBY FGGFDUT BT EFGFSSFE UBY BTTFUT PS MJBCJMJUJFT 5IF DVNVMBUJWF FGGFDU PG UIJT DIBOHF JO BDDPVOUJOH QPMJDZ IBT CFFO QSFTFOUFE JO /PUF UP UIF Ã&#x2021;OBODJBM TUBUFNFOUT (b) Accounting standards that Xill become effective in the future

"DDPVOUJOH 4UBOEBSET 5"4 SFWJTFE 1SFTFOUBUJPO PG 'JOBODJBM 4UBUFNFOUT 5"4 SFWJTFE 4UBUFNFOU PG $BTI 'MPXT 5"4 SFWJTFE *ODPNF 5BYFT 5"4 SFWJTFE -FBTFT 5"4 SFWJTFE 3FWFOVF 5"4 SFWJTFE &NQMPZFF #FOFÃ&#x2021;UT 5"4 SFWJTFE 5IF &GGFDUT PG $IBOHFT JO 'PSFJHO &YDIBOHF 3BUFT 5"4 SFWJTFE 3FMBUFE 1BSUZ %JTDMPTVSFT 5"4 SFWJTFE *OWFTUNFOUT JO "TTPDJBUFT 5"4 SFWJTFE *OUFSFTUT JO +PJOU 7FOUVSFT 5"4 SFWJTFE *OUFSJN 'JOBODJBM 3FQPSUJOH 5"4 SFWJTFE *NQBJSNFOU PG "TTFUT 5"4 SFWJTFE *OUBOHJCMF "TTFUT 'JOBODJBM 3FQPSUJOH 4UBOEBSET 5'34 SFWJTFE 4IBSF CBTFE 1BZNFOU 5'34 SFWJTFE #VTJOFTT $PNCJOBUJPOT 5'34 *OTVSBODF $POUSBDUT 5'34 SFWJTFE /PO DVSSFOU "TTFUT )FME GPS 4BMF BOE %JTDPOUJOVFE 0QFSBUJPOT 5'34 SFWJTFE 0QFSBUJOH 4FHNFOUT "DDPVOUJOH 4UBOEBSE *OUFSQSFUBUJPOT 54*$ 0QFSBUJOH -FBTFT *ODFOUJWFT 54*$ &WBMVBUJOH UIF 4VCTUBODF PG 5SBOTBDUJPOT *OWPMWJOH UIF -FHBM 'PSN PG B -FBTF 54*$ 4FSWJDF $PODFTTJPO "SSBOHFNFOUT %JTDMPTVSFT 54*$ *OUBOHJCMF "TTFUT 8FC 4JUF $PTUT

Effective date +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ

Annual Report 2013

3. NEW ACCOUNTING STANDARDS #FMPX JT B TVNNBSZ PG BDDPVOUJOH TUBOEBSET UIBU CFDBNF FGGFDUJWF JO UIF DVSSFOU BDDPVOUJOH ZFBS BOE UIPTF UIBU XJMM become effective in the future. (a) Accounting standards that became effective in the current accounting year "DDPVOUJOH TUBOEBSET 5"4 *ODPNF 5BYFT 5"4 SFWJTFE "DDPVOUJOH GPS (PWFSONFOU (SBOUT BOE %JTDMPTVSF PG (PWFSONFOU "TTJTUBODF 5"4 SFWJTFE 5IF &GGFDUT PG $IBOHFT JO 'PSFJHO &YDIBOHF 3BUFT 'JOBODJBM 3FQPSUJOH 4UBOEBSE 5'34 0QFSBUJOH 4FHNFOUT "DDPVOUJOH 4UBOEBSE *OUFSQSFUBUJPOT 54*$ (PWFSONFOU "TTJTUBODF /P 4QFDJÃ&#x2021;D 3FMBUJPO UP 0QFSBUJOH "DUJWJUJFT 54*$ *ODPNF 5BYFT 3FDPWFSZ PG 3FWBMVFE /PO %FQSFDJBCMF "TTFUT 54*$ *ODPNF 5BYFT $IBOHFT JO UIF 5BY 4UBUVT PG BO &OUJUZ PS JUT 4IBSFIPMEFST "DDPVOUJOH 5SFBUNFOU (VJEBODF GPS 5SBOTGFST PG 'JOBODJBM "TTFUT

Bumrungrad Hospital Public Company Limited

'JOBODJBM 3FQPSUJOH 4UBOEBSE *OUFSQSFUBUJPOT 5'3*$ $IBOHFT JO &YJTUJOH %FDPNNJTTJPOJOH 3FTUPSBUJPO BOE 4JNJMBS -JBCJMJUJFT 5'3*$ %FUFSNJOJOH XIFUIFS BO "SSBOHFNFOU DPOUBJOT B -FBTF 5'3*$ 3JHIUT UP *OUFSFTUT BSJTJOH GSPN %FDPNNJTTJPOJOH Restoration and Environmental Rehabilitation Funds 5'3*$ "QQMZJOH UIF 3FTUBUFNFOU "QQSPBDI VOEFS 5"4 'JOBODJBM 3FQPSUJOH JO )ZQFSJOÃ&#x2C6;BUJPOBSZ &DPOPNJFT 5'3*$ *OUFSJN 'JOBODJBM 3FQPSUJOH BOE *NQBJSNFOU 5'3*$ 4FSWJDF $PODFTTJPO "SSBOHFNFOUT 5'3*$ $VTUPNFS -PZBMUZ 1SPHSBNNFT 5'3*$ %JTUSJCVUJPOT PG /PO DBTI "TTFUT UP 0XOFST 5'3*$ 5SBOTGFST PG "TTFUT GSPN $VTUPNFST

5IF $PNQBOZkT NBOBHFNFOU CFMJFWFT UIBU UIFTF BDDPVOUJOH TUBOEBSET Ã&#x2021;OBODJBM SFQPSUJOH TUBOEBSET BDDPVOUJOH TUBOEBSE JOUFSQSFUBUJPOT BOE Ã&#x2021;OBODJBM SFQPSUJOH TUBOEBSE JOUFSQSFUBUJPOT XJMM OPU IBWF BOZ TJHOJÃ&#x2021;DBOU JNQBDU PO UIF Ã&#x2021;OBODJBM TUBUFNFOUT GPS the years when they are initially applied.

CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING POLICY DUE TO THE ADOPTION OF NEW ACCOUNTING STANDARD %VSJOH UIF DVSSFOU ZFBS UIF (SPVQ NBEF UIF DIBOHFT EFTDSJCFE JO /PUF UP UIF Ã&#x2021;OBODJBM TUBUFNFOUT UP JUT TJHOJÃ&#x2021;DBOU BDDPVOUJOH QPMJDZ BT B SFTVMU PG UIF BEPQUJPO PG 5IBJ "DDPVOUJOH 4UBOEBSE *ODPNF 5BYFT 5IF DVNVMBUJWF FGGFDU PG UIF DIBOHF JO UIF BDDPVOUJOH QPMJDZ IBT CFFO TFQBSBUFMZ QSFTFOUFE JO UIF TUBUFNFOUT PG DIBOHFT JO TIBSFIPMEFSTk FRVJUZ 5IF BNPVOUT PG BEKVTUNFOUT BGGFDUJOH UIF TUBUFNFOUT PG Ã&#x2021;OBODJBM QPTJUJPO BOE UIF TUBUFNFOUT PG JODPNF BOE DPNQSFIFOTJWF income are summarised below. $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT As at As at As at 31 December 31 December +BOVBSZ 2013 2012 2012

Statements of Ã&#x2021;nancial position *ODSFBTF JO EFGFSSFE UBY BTTFUT Increase in unappropriated SFUBJOFE FBSOJOHT

+BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ +BOVBSZ

(Unit: Thousand Baht) 4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT As at As at As at 31 December 31 December +BOVBSZ 2013 2012 2012

150,957

122,952

218,431

150,726

122,573

217,787

150,957

122,952

218,431

150,726

122,573

217,787

(Unit: Thousand Baht) For the years ended 31 December $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT 4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT 2013 2012 2013 2012 Income statements *ODSFBTF EFDSFBTF JO JODPNF UBY FYQFOTFT *ODSFBTF EFDSFBTF JO QSPÃ&#x2021;U BUUSJCVUBCMF UP FRVJUZ IPMEFST of the Company *ODSFBTF EFDSFBTF JO CBTJD FBSOJOHT QFS TIBSF #BIU

*ODSFBTF EFDSFBTF JO EJMVUFE FBSOJOHT QFS TIBSF #BIU

Statements of comprehensive income *ODSFBTF EFDSFBTF JO BDUVBSJBM MPTT SFDPHOJTFE EVSJOH UIF ZFBS OFU PG JODPNF UBY *ODSFBTF EFDSFBTF JO QSPÃ&#x2021;U BUUSJCVUBCMF UP FRVJUZ IPMEFST of the Company

(24,382)

108,939

(24,529)

108,963

24,382 0.0335 0.0281

(108,939) (0.1496) (0.1256)

24,529 0.0337 0.0283

(108,963) (0.1496) (0.1256)

(3,624)

13,460

(3,624)

13,749

3,624

(13,460)

3,624

(13,749)

5IF BCPWF FGGFDUT JODMVEF UIF UBY FGGFDUT PG UIF DIBOHF JO BDDPVOUJOH FTUJNBUJPO SFMBUFE UP DIBOHFT NBEF UP UIF FTUJNBUFE VTFGVM MJWFT PG DFSUBJO BTTFUT BT EFTDSJCFE JO /PUF UP UIF Ã&#x2021;OBODJBM TUBUFNFOUT

6. SIGNIFICANT ACCOUNTING POLICIES 6.1 Revenue recognition B 3FWFOVFT GSPN IPTQJUBM PQFSBUJPOT NBJOMZ DPOTJTUJOH PG NFEJDBM GFFT IPTQJUBM SPPN TBMFT BOE NFEJDJOF TBMFT BSF SFDPHOJTFE BT JODPNF XIFO TFSWJDFT IBWF CFFO SFOEFSFE PS NFEJDJOF EFMJWFSFE C $POTVMUJOH BOE NBOBHFNFOU TFSWJDF JODPNF BSF SFDPHOJTFE XIFO TFSWJDFT IBWF CFFO SFOEFSFE UBLJOH JOUP BDDPVOU the stated of completion. D 3FOUBM JODPNF BOE SFMBUFE TFSWJDF JODPNF BSF SFDPHOJTFE PO B TUSBJHIU MJOF CBTJT PWFS UIF MFBTF UFSN E *OUFSFTU JODPNF JT SFDPHOJTFE PO BO BDDSVBM CBTJT CBTFE PO UIF FGGFDUJWF JOUFSFTU SBUF F %JWJEFOET BSF SFDPHOJTFE XIFO UIF SJHIU UP SFDFJWF UIF EJWJEFOET JT FTUBCMJTIFE 6.2 Cash and cash equivalents $BTI BOE DBTI FRVJWBMFOUT DPOTJTU PG DBTI JO IBOE BOE BU CBOLT BOE BMM IJHIMZ MJRVJE JOWFTUNFOUT XJUI BO PSJHJOBM maturity of three months or less and not subject to withdrawal restrictions. 6.3 Trade accounts receivable Trade accounts receivable are stated at the net realisable value. Allowance for doubtful accounts is provided for the FTUJNBUFE MPTTFT UIBU NBZ CF JODVSSFE JO DPMMFDUJPO PG SFDFJWBCMFT 5IF BMMPXBODF JT HFOFSBMMZ CBTFE PO DPMMFDUJPO FYQFSJFODF BOE BOBMZTJT PG EFCU BHJOH 6.4 Inventories *OWFOUPSJFT BSF WBMVFE BU UIF MPXFS PG DPTU XFJHIUFE BWFSBHF CBTJT BOE OFU SFBMJTBCMF WBMVF 6.5 Investments B *OWFTUNFOUT JO OPO NBSLFUBCMF FRVJUZ TFDVSJUJFT XIJDI UIF $PNQBOZ DMBTTJÃ&#x2021;FT BT PUIFS JOWFTUNFOUT BSF TUBUFE BU DPTU net of allowance for loss on diminution in value (if any). C *OWFTUNFOUT JO BTTPDJBUFT BSF BDDPVOUFE GPS JO UIF DPOTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT VTJOH UIF FRVJUZ NFUIPE (PPEXJMM SFMBUJOH UP BO BTTPDJBUF JT JODMVEFE JO UIF DBSSZJOH BNPVOU PG UIF JOWFTUNFOU 4VDI HPPEXJMM JT OPU BNPSUJTFE c) *OWFTUNFOUT JO TVCTJEJBSJFT BOE BTTPDJBUFT BSF BDDPVOUFE GPS JO UIF TFQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT VTJOH UIF DPTU NFUIPE net of allowance for loss on diminution in value (if any). 5IF XFJHIUFE BWFSBHF NFUIPE JT VTFE GPS DPNQVUBUJPO PG UIF DPTU PG JOWFTUNFOUT 0O EJTQPTBM PG BO JOWFTUNFOU UIF EJGGFSFODF CFUXFFO OFU EJTQPTBM QSPDFFET BOE UIF DBSSZJOH BNPVOU PG UIF JOWFTUNFOU JT SFDPHOJTFE JO UIF JODPNF TUBUFNFOU 6.6 Property, plant and equipment/Depreciation -BOE JT TUBUFE BU DPTU #VJMEJOHT BOE FRVJQNFOU BSF TUBUFE BU DPTU MFTT BDDVNVMBUFE EFQSFDJBUJPO BOE BMMPXBODF GPS MPTT PO JNQBJSNFOU PG BTTFUT JG BOZ %FQSFDJBUJPO PG CVJMEJOHT BOE FRVJQNFOU JT DBMDVMBUFE CZ SFGFSFODF UP UIFJS DPTUT PO UIF TUSBJHIU MJOF CBTJT PWFS UIF GPMMPXJOH FTUJNBUFE VTFGVM MJWFT

Land improvement #VJMEJOHT BOE DPOTUSVDUJPO Facility systems Medical accessory equipment )PTQJUBM FRVJQNFOU Equipment and furniture Motor vehicles

30 years BOE ZFBST 3 - 20 years 5 - 15 years ZFBST 5 - 15 years 5 years

%FQSFDJBUJPO JT JODMVEFE JO EFUFSNJOJOH JODPNF No depreciation is provided on land and assets under construction and installation. "O JUFN PG QSPQFSUZ QMBOU BOE FRVJQNFOU JT EFSFDPHOJTFE VQPO EJTQPTBM PS XIFO OP GVUVSF FDPOPNJD CFOFÃ&#x2021;UT BSF FYQFDUFE GSPN JUT VTF PS EJTQPTBM "OZ HBJO PS MPTT BSJTJOH PO EJTQPTBM PG BO BTTFU JT JODMVEFE JO UIF JODPNF TUBUFNFOU XIFO UIF BTTFU JT EFSFDPHOJTFE

Annual Report 2013

5. CHANGE IN ACCOUNTING ESTIMATION *O UIF (SPVQ DIBOHFE UIF FTUJNBUFE VTFGVM MJWFT PG DFSUBJO CVJMEJOH JNQSPWFNFOU BOE GBDJMJUZ TZTUFNT GSPN ZFBST UP ZFBST BOE GSPN BOE ZFBST UP ZFBST JO PSEFS UP BDDPSE XJUI UIF (SPVQkT DBNQVT FYQBOTJPO QMBO BOE (SPVQkT FTUJNBUFE VTFGVM MJWFT QPMJDZ 5IF (SPVQ IBT BQQMJFE UIF DIBOHFT JO FTUJNBUFE VTFGVM MJWFT PG BTTFUT QSPTQFDUJWFMZ 5IF DIBOHF IBT UIF FGGFDU PG EFDSFBTJOH QSPÃ&#x2021;U BGUFS UBY GPS UIF ZFBS CZ BQQSPYJNBUFMZ #BIU NJMMJPO JO UIF DPOTPMJEBUFE BOE TFQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT BOE EFDSFBTJOH CBTJD FBSOJOHT QFS TIBSF CZ #BIU QFS TIBSF BOE EFDSFBTJOH EJMVUFE FBSOJOHT QFS TIBSF CZ #BIU QFS TIBSF *O BEEJUJPO UIF DIBOHF JT FYQFDUFE UP IBWF UIF FGGFDU PG EFDSFBTJOH UIF QSPÃ&#x2021;U BGUFS UBY PG GVUVSF QFSJPET CZ BQQSPYJNBUFMZ #BIU NJMMJPO QFS ZFBS BOE EFDSFBTJOH CBTJD FBSOJOHT QFS TIBSF CZ #BIU QFS TIBSF BOE EFDSFBTJOH EJMVUFE FBSOJOHT QFS TIBSF CZ #BIU QFS TIBSF

Bumrungrad Hospital Public Company Limited

6. 6.8

BorroXing costs #PSSPXJOH DPTUT EJSFDUMZ BUUSJCVUBCMF UP UIF BDRVJTJUJPO PS DPOTUSVDUJPO PG BO BTTFU UIBU OFDFTTBSJMZ UBLFT B TVCTUBOUJBM QFSJPE PG UJNF UP HFU SFBEZ GPS JUT JOUFOEFE VTF PS TBMF BSF DBQJUBMJTFE BT QBSU PG UIF DPTU PG UIF SFTQFDUJWF BTTFUT "MM PUIFS CPSSPXJOH DPTUT BSF FYQFOTFE JO UIF QFSJPE UIFZ BSF JODVSSFE #PSSPXJOH DPTUT DPOTJTU PG JOUFSFTU BOE PUIFS DPTUT UIBU BO FOUJUZ JODVST JO DPOOFDUJPO XJUI UIF CPSSPXJOH PG GVOET Intangible assets *OUBOHJCMF BTTFUT BSF DBSSJFE BU DPTU MFTT BDDVNVMBUFE BNPSUJTBUJPO BOE BDDVNVMBUFE JNQBJSNFOU MPTTFT JG BOZ *OUBOHJCMF BTTFUT XJUI Ã&#x2021;OJUF MJWFT BSF BNPSUJTFE PO B TZTUFNBUJD CBTJT PWFS UIF FDPOPNJD VTFGVM MJGF BOE UFTUFE GPS JNQBJSNFOU XIFOFWFS UIFSF JT BO JOEJDBUJPO UIBU UIF JOUBOHJCMF BTTFU NBZ CF JNQBJSFE 5IF BNPSUJTBUJPO QFSJPE BOE UIF BNPSUJTBUJPO NFUIPE PG TVDI JOUBOHJCMF BTTFUT BSF SFWJFXFE BU MFBTU BU FBDI Ã&#x2021;OBODJBM ZFBS FOE 5IF BNPSUJTBUJPO FYQFOTF JT DIBSHFE UP UIF JODPNF TUBUFNFOU

" TVNNBSZ PG UIF JOUBOHJCMF BTTFUT XJUI Ã&#x2021;OJUF VTFGVM MJWFT JT BT GPMMPXT Useful lives Computer software 3, 5 and 10 Compensation for business combination 10

years years

6.9 Related party transactions Related parties comprise enterprises and individuals that control, or are controlled by, the Company, whether directly or indirectly, or which are under common control with the Company. 5IFZ BMTP JODMVEF BTTPDJBUFT BOE JOEJWJEVBMT XIJDI EJSFDUMZ PS JOEJSFDUMZ PXO B WPUJOH JOUFSFTU JO UIF $PNQBOZ UIBU HJWFT UIFN TJHOJÃ&#x2021;DBOU JOÃ&#x2C6;VFODF PWFS UIF $PNQBOZ LFZ NBOBHFNFOU QFSTPOOFM EJSFDUPST BOE PÃ¨DFST XJUI BVUIPSJUZ JO UIF QMBOOJOH BOE EJSFDUJPO PG UIF $PNQBOZkT PQFSBUJPOT 6.10 Long-term leases -FBTFT PG QSPQFSUZ QMBOU PS FRVJQNFOU XIJDI USBOTGFS TVCTUBOUJBMMZ BMM UIF SJTLT BOE SFXBSET PG PXOFSTIJQ BSF DMBTTJÃ&#x2021;FE BT Ã&#x2021;OBODF MFBTFT 'JOBODF MFBTFT BSF DBQJUBMJTFE BU UIF MPXFS PG UIF GBJS WBMVF PG UIF MFBTFE BTTFUT BOE UIF QSFTFOU WBMVF PG UIF NJOJNVN MFBTF QBZNFOUT 5IF PVUTUBOEJOH SFOUBM PCMJHBUJPOT OFU PG Ã&#x2021;OBODF DIBSHFT BSF JODMVEFE JO MPOH UFSN payables, XIJMF UIF JOUFSFTU FMFNFOU JT DIBSHFE UP QSPÃ&#x2021;U PS MPTT PWFS UIF MFBTF QFSJPE 5IF BTTFU BDRVJSFE VOEFS Ã&#x2021;OBODF leases is depreciated over the shorter of the useful life of the asset and the lease period. Leases of property, plant or equipment which do not transfer substantially all the risks and rewards of ownership are DMBTTJÃ&#x2021;FE BT PQFSBUJOH MFBTFT 0QFSBUJOH MFBTF QBZNFOUT BSF SFDPHOJTFE BT BO FYQFOTF JO UIF JODPNF TUBUFNFOU PO B TUSBJHIU MJOF CBTJT PWFS UIF MFBTF UFSN 6.11 Deferred debenture issuing costs %FCFOUVSF JTTVJOH DPTUT BSF SFDPSEFE BT EFGFSSFE Ã&#x2021;OBODJBM GFFT BOE BNPSUJTFE UP CF JOUFSFTU FYQFOTF VTJOH UIF effective interest rate method over the term of the debentures. %FGFSSFE EFCFOUVSF JTTVJOH DPTUT BSF QSFTFOUFE BT B EFEVDUJPO BHBJOTU UIF EFCFOUVSF BNPVOUT JO UIF TUBUFNFOU PG Ã&#x2021;OBODJBM QPTJUJPO 6.12 Foreign currencies 5IF DPOTPMJEBUFE BOE TFQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT BSF QSFTFOUFE JO #BIU XIJDI JT UIF $PNQBOZkT GVODUJPOBM DVSSFODZ *UFNT PG FBDI FOUJUZ JODMVEFE JO UIF DPOTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT BSF NFBTVSFE VTJOH UIF GVODUJPOBM DVSSFODZ PG UIBU FOUJUZ 5SBOTBDUJPOT JO GPSFJHO DVSSFODJFT BSF USBOTMBUFE JOUP #BIU BU UIF FYDIBOHF SBUF SVMJOH BU UIF EBUF PG UIF USBOTBDUJPO .POFUBSZ BTTFUT BOE MJBCJMJUJFT EFOPNJOBUFE JO GPSFJHO DVSSFODJFT BSF USBOTMBUFE JOUP #BIU BU UIF FYDIBOHF SBUF SVMJOH BU UIF FOE PG SFQPSUJOH QFSJPE (BJOT BOE MPTTFT PO FYDIBOHF BSF JODMVEFE JO EFUFSNJOJOH JODPNF 6.13 Impairment of assets "U UIF FOE PG FBDI SFQPSUJOH QFSJPE UIF (SPVQ QFSGPSNT JNQBJSNFOU SFWJFXT JO SFTQFDU PG UIF QSPQFSUZ QMBOU BOE FRVJQNFOU BOE JOUBOHJCMF BTTFUT XIFOFWFS FWFOUT PS DIBOHFT JO DJSDVNTUBODFT JOEJDBUF UIBU BO BTTFU NBZ CF JNQBJSFE "O JNQBJSNFOU MPTT JT SFDPHOJTFE XIFO UIF SFDPWFSBCMF BNPVOU PG BO BTTFU XIJDI JT UIF IJHIFS PG UIF BTTFUkT GBJS WBMVF MFTT DPTUT UP TFMM BOE JUT WBMVF JO VTF JT MFTT UIBO UIF DBSSZJOH BNPVOU "O JNQBJSNFOU MPTT JT SFDPHOJTFE JO UIF JODPNF TUBUFNFOU *O UIF BTTFTTNFOU PG BTTFU JNQBJSNFOU JG UIFSF JT BOZ JOEJDBUJPO UIBU QSFWJPVTMZ SFDPHOJTFE JNQBJSNFOU MPTTFT NBZ OP MPOHFS FYJTU PS NBZ IBWF EFDSFBTFE UIF (SPVQ FTUJNBUFT UIF BTTFUkT SFDPWFSBCMF BNPVOU " QSFWJPVTMZ SFDPHOJTFE JNQBJSNFOU MPTT JT SFWFSTFE POMZ JG UIFSF IBT CFFO B DIBOHF JO UIF BTTVNQUJPOT VTFE UP EFUFSNJOF UIF BTTFUkT SFDPWFSBCMF BNPVOU TJODF UIF MBTU JNQBJSNFOU MPTT XBT SFDPHOJTFE 5IF JODSFBTFE DBSSZJOH BNPVOU PG UIF BTTFU BUUSJCVUBCMF UP B SFWFSTBM PG BO JNQBJSNFOU MPTT TIBMM OPU FYDFFE UIF DBSSZJOH BNPVOU UIBU XPVME IBWF CFFO EFUFSNJOFE IBE OP JNQBJSNFOU MPTT CFFO SFDPHOJTFE GPS UIF BTTFU JO QSJPS ZFBST 4VDI SFWFSTBM JT SFDPHOJTFE JO UIF JODPNF TUBUFNFOU

6.14 Employee beneÇts 4IPSU UFSN FNQMPZFF CFOFÇUT 4BMBSJFT XBHFT CPOVTFT QBJE BOOVBM MFBWF BOE DPOUSJCVUJPOT UP UIF TPDJBM TFDVSJUZ GVOE BSF SFDPHOJTFE BT FYQFOTFT XIFO JODVSSFE 1PTU FNQMPZNFOU CFOFÇUT BOE PUIFS MPOH UFSN FNQMPZFF CFOFÇUT %FÇOFE DPOUSJCVUJPO plans The Group and its employees have jointly established a provident fund. The fund is monthly contributed by employees BOE CZ UIF (SPVQ 5IF GVOEkT BTTFUT BSF IFME JO B TFQBSBUF USVTU GVOE BOE UIF (SPVQkT DPOUSJCVUJPOT BSF SFDPHOJTFE BT FYQFOTFT XIFO JODVSSFE %FÇOFE CFOFÇU QMBOT BOE PUIFS MPOH UFSN FNQMPZFF CFOFÇUT 5IF (SPVQ IBT PCMJHBUJPOT JO SFTQFDU PG UIF TFWFSBODF QBZNFOUT UIFZ NVTU NBLF UP FNQMPZFFT VQPO SFUJSFNFOU VOEFS MBCPS MBX BOE PUIFS FNQMPZFF CFOFÇU QMBOT 5IF (SPVQ USFBUT UIFTF TFWFSBODF QBZNFOU PCMJHBUJPOT BT B EFÇOFE CFOFÇU QMBO *O BEEJUJPO UIF (SPVQ QSPWJEFT PUIFS MPOH UFSN FNQMPZFF CFOFÇU QMBO OBNFMZ MPOH TFSWJDF BXBSET 5IF PCMJHBUJPO VOEFS UIF EFÇOFE CFOFÇU QMBO BOE PUIFS MPOH UFSN FNQMPZFF CFOFÇU QMBOT JT EFUFSNJOFE CZ B QSPGFTTJPOBMMZ RVBMJÇFE JOEFQFOEFOU BDUVBSZ CBTFE PO BDUVBSJBM UFDIOJRVFT VTJOH UIF QSPKFDUFE VOJU DSFEJU NFUIPE "DUVBSJBM HBJOT BOE MPTTFT BSJTJOH GSPN QPTU FNQMPZNFOU CFOFÇUT BSF SFDPHOJTFE JNNFEJBUFMZ JO PUIFS DPNQSFIFOTJWF income. "DUVBSJBM HBJOT BOE MPTTFT BSJTJOH GSPN PUIFS MPOH UFSN CFOFÇUT BSF SFDPHOJTFE JNNFEJBUFMZ JO UIF JODPNF TUBUFNFOU 'PS UIF ÇSTU UJNF BEPQUJPO PG 5"4 &NQMPZFF #FOFÇUT JO UIF (SPVQ FMFDUFE UP SFDPHOJTF UIF USBOTJUJPOBM MJBCJMJUZ XIJDI FYDFFET UIF MJBCJMJUZ UIBU XPVME IBWF CFFO SFDPHOJTFE BU UIF TBNF EBUF VOEFS UIF QSFWJPVT BDDPVOUJOH QPMJDZ UISPVHI BO BEKVTUNFOU UP UIF CFHJOOJOH CBMBODF PG SFUBJOFE FBSOJOHT JO 6.15 Provisions 1SPWJTJPOT BSF SFDPHOJTFE XIFO UIF (SPVQ IBT B QSFTFOU PCMJHBUJPO BT B SFTVMU PG B QBTU FWFOU JU JT QSPCBCMF UIBU BO PVUÈPX PG SFTPVSDFT FNCPEZJOH FDPOPNJD CFOFÇUT XJMM CF SFRVJSFE UP TFUUMF UIF PCMJHBUJPO BOE B SFMJBCMF FTUJNBUF DBO CF NBEF PG UIF BNPVOU PG UIF PCMJHBUJPO 6.16 Income tax *ODPNF UBY FYQFOTF SFQSFTFOUT UIF TVN PG DPSQPSBUF JODPNF UBY DVSSFOUMZ QBZBCMF BOE EFGFSSFE UBY Current tax $VSSFOU JODPNF UBY JT QSPWJEFE JO UIF BDDPVOUT BU UIF BNPVOU FYQFDUFE UP CF QBJE UP UIF UBYBUJPO BVUIPSJUJFT CBTFE PO UBYBCMF QSPÇUT EFUFSNJOFE JO BDDPSEBODF XJUI UBY MFHJTMBUJPO Deferred tax %FGFSSFE JODPNF UBY JT QSPWJEFE PO UFNQPSBSZ EJGGFSFODFT CFUXFFO UIF UBY CBTFT PG BTTFUT BOE MJBCJMJUJFT BOE UIFJS DBSSZJOH BNPVOUT BU UIF FOE PG FBDI SFQPSUJOH QFSJPE VTJOH UIF UBY SBUFT FOBDUFE BU UIF FOE PG UIF SFQPSUJOH QFSJPE 5IF (SPVQ SFDPHOJTFT EFGFSSFE UBY MJBCJMJUJFT GPS BMM UBYBCMF UFNQPSBSZ EJGGFSFODFT XIJMF JU SFDPHOJTFT EFGFSSFE UBY BTTFUT GPS BMM EFEVDUJCMF UFNQPSBSZ EJGGFSFODFT BOE UBY MPTTFT DBSSJFE GPSXBSE UP UIF FYUFOU UIBU JU JT QSPCBCMF UIBU GVUVSF UBYBCMF QSPÇU XJMM CF BWBJMBCMF BHBJOTU XIJDI TVDI EFEVDUJCMF UFNQPSBSZ EJGGFSFODFT BOE UBY MPTTFT DBSSJFE GPSXBSE DBO be utilised. "U FBDI SFQPSUJOH EBUF UIF (SPVQ SFWJFXT BOE SFEVDFT UIF DBSSZJOH BNPVOU PG EFGFSSFE UBY BTTFUT UP UIF FYUFOU UIBU JU JT OP MPOHFS QSPCBCMF UIBU TVèDJFOU UBYBCMF QSPÇU XJMM CF BWBJMBCMF UP BMMPX BMM PS QBSU PG UIF EFGFSSFE UBY BTTFU UP CF VUJMJTFE 5IF (SPVQ SFDPSET EFGFSSFE UBY EJSFDUMZ UP TIBSFIPMEFSTk FRVJUZ JG UIF UBY SFMBUFT UP JUFNT UIBU BSF SFDPSEFE EJSFDUMZ to shareholders’ equity.

7. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES 5IF QSFQBSBUJPO PG ÇOBODJBM TUBUFNFOUT JO DPOGPSNJUZ XJUI ÇOBODJBM SFQPSUJOH TUBOEBSET SFRVJSFT NBOBHFNFOU UP NBLF TVCKFDUJWF KVEHNFOUT BOE FTUJNBUFT SFHBSEJOH NBUUFST UIBU BSF JOIFSFOUMZ VODFSUBJO 5IFTF KVEHNFOUT BOE FTUJNBUFT BGGFDU SFQPSUFE BNPVOUT BOE EJTDMPTVSFT BOE BDUVBM SFTVMUT DPVME EJGGFS GSPN UIFTF FTUJNBUFT 4JHOJÇDBOU KVEHNFOUT BOE FTUJNBUFT BSF BT GPMMPXT Leases *O EFUFSNJOJOH XIFUIFS B MFBTF JT UP CF DMBTTJÇFE BT BO PQFSBUJOH MFBTF PS ÇOBODF MFBTF UIF NBOBHFNFOU JT SFRVJSFE UP VTF KVEHNFOU SFHBSEJOH XIFUIFS TJHOJÇDBOU SJTL BOE SFXBSET PG PXOFSTIJQ PG UIF MFBTFE BTTFU IBT CFFO USBOTGFSSFE UBLJOH JOUP DPOTJEFSBUJPO UFSNT BOE DPOEJUJPOT PG UIF BSSBOHFNFOU AlloXance for doubtful accounts *O EFUFSNJOJOH BO BMMPXBODF GPS EPVCUGVM BDDPVOUT UIF NBOBHFNFOU OFFET UP NBLF KVEHNFOU BOE FTUJNBUFT CBTFE VQPO BNPOH PUIFS UIJOHT QBTU DPMMFDUJPO IJTUPSZ BHJOH QSPÇMF PG PVUTUBOEJOH EFCUT BOE UIF QSFWBJMJOH FDPOPNJD DPOEJUJPO Property, plant and equipment/Depreciation *O EFUFSNJOJOH EFQSFDJBUJPO PG QMBOU BOE FRVJQNFOU UIF NBOBHFNFOU JT SFRVJSFE UP NBLF FTUJNBUFT PG UIF VTFGVM MJWFT BOE SFTJEVBM WBMVFT PG UIF (SPVQkT QMBOU BOE FRVJQNFOU BOE UP SFWJFX FTUJNBUF VTFGVM MJWFT BOE SFTJEVBM WBMVFT XIFO UIFSF BSF BOZ DIBOHFT

Annual Report 2013

Bumrungrad Hospital Public Company Limited

*O BEEJUJPO UIF NBOBHFNFOU JT SFRVJSFE UP SFWJFX QSPQFSUZ QMBOU BOE FRVJQNFOU GPS JNQBJSNFOU PO B QFSJPEJDBM CBTJT BOE SFDPSE JNQBJSNFOU MPTTFT XIFO JU JT EFUFSNJOFE UIBU UIFJS SFDPWFSBCMF BNPVOU JT MPXFS UIBO UIF DBSSZJOH BNPVOU 5IJT SFRVJSFT KVEHNFOUT SFHBSEJOH GPSFDBTU PG GVUVSF SFWFOVFT BOE FYQFOTFT SFMBUJOH UP UIF BTTFUT TVCKFDU UP UIF SFWJFX Deferred tax assets %FGFSSFE UBY BTTFUT BSF SFDPHOJTFE GPS EFEVDUJCMF UFNQPSBSZ EJGGFSFODFT BOE VOVTFE UBY MPTTFT UP UIF FYUFOU UIBU JU JT QSPCBCMF UIBU UBYBCMF QSPÇU XJMM CF BWBJMBCMF BHBJOTU XIJDI UIF UFNQPSBSZ EJGGFSFODFT BOE MPTTFT DBO CF VUJMJTFE 4JHOJÇDBOU NBOBHFNFOU KVEHFNFOU JT SFRVJSFE UP EFUFSNJOF UIF BNPVOU PG EFGFSSFE UBY BTTFUT UIBU DBO CF SFDPHOJTFE CBTFE VQPO UIF MJLFMZ UJNJOH BOE MFWFM PG FTUJNBUF GVUVSF UBYBCMF QSPÇUT Post-employment beneÇts under deÇned beneÇt plans and other long-term employee beneÇts 5IF PCMJHBUJPO VOEFS UIF EFÇOFE CFOFÇU QMBO BOE PUIFS MPOH UFSN FNQMPZFF CFOFÇU QMBOT JT EFUFSNJOFE CBTFE PO BDUV BSJBM UFDIOJRVFT 4VDI EFUFSNJOBUJPO JT NBEF CBTFE PO WBSJPVT BTTVNQUJPOT JODMVEJOH EJTDPVOU SBUF GVUVSF TBMBSZ JODSFBTF SBUF mortality rate and staff turnover rate.

8. CASH AND CASH EQUIVALENTS $POTPMJEBUFE ÇOBODJBM TUBUFNFOUT 2013 2012 Cash Bank deposits #JMM PG FYDIBOHF Government bonds Total

(Unit: Thousand Baht) 4FQBSBUF ÇOBODJBM TUBUFNFOUT 2013 2012

36,236

17,062

33,952

16,563

1,556,052

1,276,185

1,528,185

1,183,136

4,264,923

4,142,698

4,149,923

4,142,698

598,199

5,857,211

6,034,144

5,712,060

5,940,596

"T BU %FDFNCFS CBOL EFQPTJUT JO TBWJOHT BDDPVOUT ÇYFE EFQPTJUT CJMM PG FYDIBOHF BOE HPWFSONFOU CPOET DBSSJFE JOUFSFTUT CFUXFFO BOE QFS BOOVN CFUXFFO BOE QFS BOOVN

$POTPMJEBUFE ÇOBODJBM TUBUFNFOUT 2013 2012 Trade receivables - related parties "HFE PO UIF CBTJT PG EVF EBUFT Not yet due 1BTU EVF 1 - 30 days 31 - 60 days 61 - 90 days 91 - 180 days 181 - 365 days More than 365 days Total trade receivables - related parties Trade receivables - unrelated parties "HFE PO UIF CBTJT PG EVF EBUFT Not yet due 1BTU EVF 1 - 30 days 31 - 60 days 61 - 90 days 91 - 180 days 181 - 365 days More than 365 days Total Less: Allowance for doubtful debts Total trade receivables - unrelated parties, net Total trade receivables - net Other receivables Advances and loans to employees Accrued income - related parties Total other receivables Trade and other receivables - net

Unit: Thousand Baht) 4FQBSBUF ÇOBODJBM TUBUFNFOUT 2013 2012

1,928

2,456

2,102

2,731

1,928

2,473

2,166

2,775

434,460

355,093

431,797

352,520

266,599

237,154

263,475

235,631

117,666

163,543

116,664

156,588

103,461

87,643

101,176

87,267

133,397

226,899

132,491

226,338

183,085

175,652

182,391

174,920

149,495

157,473

148,926

154,254

1,388,163

1,403,457

1,376,920

1,387,518

(103,707)

(89,297)

(103,760)

(85,712)

1,284,456

1,314,160

1,273,160

1,301,806

1,286,384

1,316,633

1,275,326

1,304,581

19,980

16,416

19,965

16,392

589

1,951

6,950

12,190

20,569

18,367

26,915

28,582

1,306,953

1,335,000

1,302,241

1,333,163

Annual Report 2013

9. TRADE AND OTHER RECEIVABLES

Bumrungrad Hospital Public Company Limited

10. RELATED PARTY TRANSACTIONS %VSJOH UIF ZFBST UIF $PNQBOZ BOE JUT TVCTJEJBSJFT IBE TJHOJÃ&#x2021;DBOU CVTJOFTT USBOTBDUJPOT XJUI SFMBUFE QBSUJFT 4VDI USBOTBDUJPOT which are summarised below, arose in the ordinary course of business and were concluded on commercial terms and bases BHSFFE VQPO CFUXFFO UIF $PNQBOZ BOE UIPTF SFMBUFE QBSUJFT (Unit: Million Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM 4FQBSBUF Ã&#x2021;OBODJBM statements statements 5SBOTGFS QSJDJOH QPMJDZ 2013 2012 2013 2012 Transactions Xith subsidiaries FMJNJOBUFE GSPN UIF DPOTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT

21.9 22 Market price Medical service income Rental income 4.5 4.6 As per contracts 10.1) 1SPGFTTJPOBM TFSWJDF JODPNF 1.5 1.4 Actual paid -BC TFSWJDF FYQFOTF 0.2 0.1 Market price 1IBSNBDZ FYQFOTF 9.8 6.9 Market price Transactions Xith associates 0.5 1.9 0.5 1.9 As per contract 10.2) $POTVMUJOH JODPNF Dividend income 5.4 49.9 As declared $POTVMUJOH FYQFOTF 15.7 15.7 'JYFE SBUF QFS IPVS BT TUBUFE JO UIF

*OUFSFTU FYQFOTFT PO MPOH UFSN MPBO Transactions Xith related parties Medical service income Other income -BC TFSWJDF FYQFOTF 1VSDIBTF PG NFEJDJOF BOE NFEJDBM TVQQMJFT %POBUJPO FYQFOTF *OTVSBODF FYQFOTF Credit card commission fees *OUFSFTU FYQFOTF PO MPOH UFSN debentures *OUFSFTU FYQFOTF PO MPOH UFSN bonds -FHBM BEWJTPSZ GFF $POTUSVDUJPO DPOTVMUJOH GFF Service fee

BHSFFNFOUT NVMUJQMJFE XJUI BDUVBM hours worked and p.a.

2.9

79.9

78.7

79.9

78.7

0.9

0.8

0.9

0.8

2.5

2.0

2.5

2.0

11.5

10.5

11.5

10.5

24.0

31.9

31.8

31.7

31.6

102.6

92.8

102.6

92.8

46.2

46.4

46.2

46.4

As per insurance policies Market price p.a.

32.5

Q B BOE Q B

10.0

7.1

10.0

7.1

1.2

0.4

0.6

0.4

0.6

Market price Baht 0.1 million per month BT TUBUFE JO UIF BHSFFNFOU Market price

Market price At cost Market price Market price

" TVCTJEJBSZ 7JUBMMJGF $PSQPSBUJPO $P -UE IBT MFBTFE CVJMEJOH TQBDFT GSPN UIF $PNQBOZ GPS VTF JO JUT PQFSBUJPOT DPNNFODJOH GSPN UIF ZFBS 5IF TVCTJEJBSZ IBT UP QBZ SFOUBM GFF PG #BIU QFS NPOUI "OPUIFS TVCTJEJBSZ "TJB (MPCBM 3FTFBSDI $P -UE IBE MFBTFE CVJMEJOH TQBDFT GSPN UIF $PNQBOZ GPS VTF JO JUT PQFSBUJPOT DPNNFODJOH GSPN UIF ZFBS 5IF TVCTJEJBSZ IBE UP QBZ SFOUBM GFF PG #BIU QFS NPOUI 5IF BHSFFNFOU FYQJSFE JO *O UIF TVCTJEJBSZ FOUFSFE JOUP MFBTFE CVJMEJOH TQBDFT BOE FRVJQNFOU BHSFFNFOU XJUI UIF $PNQBOZ 5IF TVCTJEJBSZ IBT UP QBZ SFOUBM GFF BOE TFSWJDF GFF UPUBMJOH #BIU QFS NPOUI TUBSUJOH GSPN +BOVBSZ POXBSE 5IF BHSFFNFOU XBT FYQJSFE JO 0DUPCFS

5IF $PNQBOZ FOUFSFE JOUP B $POTVMUJOH 4VQQPSU "HSFFNFOU XJUI BO BTTPDJBUF #VNSVOHSBE *OUFSOBUJPOBM -UE 5IF BTTPDJBUF JT PCMJHFE UP QBZ B GFF BU B Ã&#x2021;YFE SBUF QFS BOOVN BT TUJQVMBUFE JO UIF BHSFFNFOU BOE BEEJUJPOBM GFF GPS DPOTVMUJOH TFSWJDF QSPWJEFE CZ FNQMPZFFT PG UIF $PNQBOZ UP UIF BTTPDJBUF BU UIF SBUFT QFS BHSFFNFOU NVMUJQMJFE XJUI BDUVBM IPVST XPSLFE 5IF Ã&#x2021;YFE DPOTVMUJOH GFF SBUF XBT #BIU NJMMJPO QFS BOOVN FGGFDUJWF GSPN +BOVBSZ #BIU NJMMJPO QFS BOOVN FGGFDUJWF GSPN +VMZ BOE #BIU NJMMJPO QFS BOOVN FGGFDUJWF GSPN +BOVBSZ 5IF BHSFFNFOU XJMM FYQJSF JO BDDPSEBODF XJUI UIF DPOEJUJPOT JO UIF BHSFFNFOU The balances of the accounts as at 31 December 2013 and 2012 between the Company and those related parties are as follows. (Unit: Thousand Baht) 4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT 2013 2012

$POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT 2013 2012 Trade and other receivables - related parties (Note 9) Subsidiaries Associates Related parties (common director) Total Trade and other payables - related parties (Note 17) Subsidiaries Associates Total Long-term loan to a related party Subsidiary Long-term debentures Related companies (Major shareholder and common director) Convertible bonds treated as equity securities Related company (common director) Long-term loan from a related party Associate

6,599

10,553

185

1,598

185

1,586

2,332

2,826

2,332

2,826

2,517

4,424

9,116

14,965

145

247

392

1,855

955,000

550,000

176,400

Long-Term Loan To A Subsidiary "T BU %FDFNCFS MPOH UFSN MPBO UP B TVCTJEJBSZ -JGF BOE -POHFWJUZ -UE JT JO UIF GPSN PG QSPNJTTPSZ OPUFT JO 4XJTT GSBOD BNPVOUJOH UP $)' CFBSJOH OP JOUFSFTU BOE JT EVF BU DBMM 5IF $PNQBOZ EPFT OPU JOUFOE UP DBMM GPS UIF MPBO SFQBZNFOU JO UIF GPSFTFFBCMF GVUVSF UIFSFGPSF UIF MPBO JT DMBTTJÃ&#x2021;FE BT MPOH UFSN MPBO %VSJOH UIF ZFBS FOEFE %FDFNCFS NPWFNFOUT PG MPOH UFSN MPBO UP B TVCTJEJBSZ XFSF BT GPMMPXT

Balance as at 31 December 2012

%VSJOH UIF ZFBS Increase

Decrease

(Unit: Thousand Baht) Balance as at 31 December 2013

Long-term loan to a subsidiary -JGF BOE -POHFWJUZ -UE 1SJODJQBM

1,855

Annual Report 2013

Bumrungrad Hospital Public Company Limited

Long-Term Loan From An Associate 0O "QSJM UIF $PNQBOZ BOE UXP PUIFS TIBSFIPMEFST PG #VNSVOHSBE *OUFSOBUJPOBM -UE FOUFSFE JOUP B MPBO BHSFFNFOU XJUI #VNSVOHSBE *OUFSOBUJPOBM -UE XIJDI JT UIF $PNQBOZkT BTTPDJBUF HSBOUJOH UIFN MPBOT UPUBMJOH #BIU NJMMJPO PG XIJDI UIF $PNQBOZkT QPSUJPO JT #BIU NJMMJPO 5IF MPBOT DBSSZ JOUFSFTU BU UIF ZFBS Ă&#x2021;YFE EFQPTJU SBUF PG B MPDBM DPNNFSDJBM bank, and are due at call. 5IF MPBO JT DMBTTJĂ&#x2021;FE BT MPOH UFSN MPBO CFDBVTF UIF $PNQBOZkT NBOBHFNFOU CFMJFWFT UIBU UIF BTTPDJBUF OFJUIFS QMBOT OPS is likely to call for settlement in the foreseeable future. %VSJOH UIF ZFBS FOEFE %FDFNCFS NPWFNFOUT PG MPOH UFSN MPBO GSPN BO BTTPDJBUF XFSF BT GPMMPXT

Balance as at 31 December 2012

%VSJOH UIF ZFBS Increase

Decrease

(Unit: Thousand Baht) Balance as at 31 December 2013

Long-term loan to a subsidiary #VNSVOHSBE *OUFSOBUJPOBM -UE 1SJODJQBM

176,400

Interest payable

2,917

(1,664)

1,253

Total

179,317

(1,644)

177,653

Directors and managementâ&#x20AC;&#x2122;s beneĂ&#x2021;ts %VSJOH UIF ZFBST FOEFE %FDFNCFS BOE UIF (SPVQ IBE FNQMPZFF CFOFĂ&#x2021;U FYQFOTFT QBZBCMF UP UIFJS EJSFDUPST BOE NBOBHFNFOU BT GPMMPXT $POTPMJEBUFE Ă&#x2021;OBODJBM TUBUFNFOUT 2013 2012

4IPSU UFSN FNQMPZFF CFOFĂ&#x2021;UT 0UIFS MPOH UFSN CFOFĂ&#x2021;UT SFWFSTBM

5FSNJOBUJPO CFOFĂ&#x2021;UT Total

134,335 (40) 6,788 141,083

110,243 26 4,965 115,234

(Unit: Thousand Baht) 4FQBSBUF Ă&#x2021;OBODJBM TUBUFNFOUT 2013 2012 128,049 (36) 4,179 132,192

101,365 24 4,557 105,946

(Unit: Thousand Baht) $POTPMJEBUFE ÇOBODJBM TUBUFNFOUT Reduce cost to net realisable value

Cost 2013

Medicine Medical supplies Other supplies Total

2012

2013

2012

Inventories - net 2013

2012

163,109

116,864

189

162,920

116,864

48,619

49,334

48,560

49,334

93,058

67,553

93,058

67,553

304,786

233,751

248

304,538

233,751

(Unit: Thousand Baht)

Cost 2013

Medicine Medical supplies Other supplies Total

2012

4FQBSBUF ÇOBODJBM TUBUFNFOUT Reduce cost to net realisable value 2013 2012

Inventories - net 2013 2012

152,417

107,960

152,417

107,960

48,603

49,272

48,603

49,272

93,018

67,553

93,018

67,553

294,038

224,785

294,038

224,785

Annual Report 2013

11. INVENTORIES

),% million

Baht 50.0 million

Baht 340.0 million

USD 1

"TJB (MPCBM )FBMUI -UE

Asia Global Research

3VFONPOHLPM $P -UE

-JGF BOE -POHFWJUZ -UE

Total

Baht 340.0 million

Baht 50.0 million

),% million

Baht 31.5 million

100.00

4IBSFIPMEJOH QFSDFOUBHF 2013 2012

1,152,250

1,045,034

50,000

31,558

25,610

2013

Cost

1,142,246

1,045,034

50,000

21,602

25,610

2012

%VSJOH UIF ZFBST BOE UIF $PNQBOZ IBE OP EJWJEFOE SFDFJWFE GSPN TVCTJEJBSJFT

Co., Ltd.

Baht 31.5 million

1BJE VQ DBQJUBM 2013 2012

Vitallife Corporation Ltd.

Companyâ&#x20AC;&#x2122;s name

50,000

Allowance for loss on diminution in value 2013 2012

12. INVESTMENTS IN SUBSIDIARIES %FUBJMT PG JOWFTUNFOUT JO TVCTJEJBSJFT BT QSFTFOUFE JO UIF TFQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT BSF BT GPMMPXT

1,102,250

1,045,034

31,558

25,610

1,092,246

1,045,034

21,602

25,610

$BSSZJOH BNPVOUT CBTFE on cost method - net 2013 2012

(Unit: Thousand Baht)

Bumrungrad Hospital Public Company Limited

12.1

Set up a neX subsidiary 0O 0DUPCFS UIF $PNQBOZ TFU VQ BOE SFHJTUFSFE B OFX TVCTJEJBSZ -JGF BOE -POHFWJUZ -UE --( JO )POH ,POH 4QFDJBM "ENJOJTUSBUJWF 3FHJPO PG UIF 1FPQMFkT 3FQVCMJD PG $IJOB XJUI B SFHJTUFSFE TIBSF DBQJUBM PG 64% DPNQSJTJOH PG DPNNPO TIBSFT XJUI QBS WBMVF PG 64% FBDI 5IF $PNQBOZkT TIBSFIPMEJOH QFSDFOUBHF SFQSFTFOUT of total issued and paid-up share capital. The Company paid for a common share of the subsidiary at a price equal UP QBS WBMVF PG 64% 5IF DPTU PG JOWFTUNFOU JO TVCTJEJBSZ JODMVEJOH JOWFTUNFOU BDRVJTJUJPO FYQFOTFT UPUBMFE #BIU 5IF JOWFTUNFOU XBT NBEF JO BDDPSEBODF XJUI B SFTPMVUJPO PG UIF *OWFTUNFOU $PNNJUUFF .FFUJOH IFME PO 4FQUFNCFS XIJDI BQQSPWFE UIF $PNQBOZkT FTUBCMJTINFOU PG B OFX TVCTJEJBSZ GPS UIF CFOFÃ&#x2021;U PG PWFSTFBT JOWFTUNFOUT PG UIF Company. 12.2 Called portion of subsidiaryâ&#x20AC;&#x2122;s common share 0O %FDFNCFS UIF $PNQBOZ QBJE GPS UIF DBMMFE QPSUJPO PG DPNNPO TIBSFT UP "TJB (MPCBM )FBMUI -UE UIF $PNQBOZkT XIPMMZ PXOFE TVCTJEJBSZ XIJDI JT SFHJTUFSFE JO )POH ,POH 4QFDJBM "ENJOJTUSBUJWF 3FHJPO PG UIF 1FPQMFkT 3FQVCMJD PG $IJOB BNPVOUJOH UP ),% NJMMJPO PS FRVJWBMFOU UP #BIU NJMMJPO 12.3 Reduction of share capital of a subsidiary %VSJOH UIF ZFBS FOEFE %FDFNCFS B TVCTJEJBSZ "#41$ (SPVQ $P -UE SFEVDFE JUT SFHJTUFSFE BOE QBJE VQ TIBSF DBQJUBM GSPN #BIU NJMMJPO UP #BIU NJMMJPO 6TJOH UIF DPTU NFUIPE UIF TIBSF DBQJUBM SFEVDUJPO PG UIF subsidiary resulted in a loss of Baht 1.1 million presented in the separate income statement. 12.4 Sales of investment in a subsidiary 0O 4FQUFNCFS UIF $PNQBOZ TPME BMM JOWFTUNFOU JO "#41$ (SPVQ $P -UE UP UIJSE QBSUZ GPS TIBSFT BNPVOUJOH UP #BIU NJMMJPO SFTVMUJOH JO HBJO JODVSSFE GSPN TBMFT PG JOWFTUNFOU JO TVCTJEJBSZ PG #BIU NJMMJPO QSFTFOUFE JO UIF DPOTPMJEBUFE JODPNF TUBUFNFOU TFQBSBUF JODPNF TUBUFNFOU QSPÃ&#x2021;U PG #BIU NJMMJPO GPS UIF ZFBS FOEFE %FDFNCFS "T B SFTVMU PG UIF USBOTBDUJPO "#41$ (SPVQ $P -UE XBT OP MPOHFS UIF TVCTJEJBSZ PG UIF $PNQBOZ BOE NBEF JO BDDPSEBODF XJUI B SFTPMVUJPO PG UIF #PBSE PG %JSFDUPSTk .FFUJOH IFME PO /PWFNCFS

13. INVESTMENTS IN ASSOCIATES 13.1 Details of investments in associates

Companyâ&#x20AC;&#x2122;s name

Nature of business

#VNSVOHSBE *OUFSOBUJPOBM -UE )PMEJOH DPNQBOZ $%& 5SBEJOH -UE Temporary cease

(Unit: Thousand Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT $BSSZJOH BNPVOUT CBTFE Country of incorporation 4IBSFIPMEJOH QFSDFOUBHF Cost on equity method

Thailand Thailand

2013

2012

31.50 30.00

2013

2012

2013

2012

31.50 1,447 30.00 21,663

1,447 21,663

231,069 3,517

228,758 8,987

23,110

234,586

237,745

its operation

Total

Companyâ&#x20AC;&#x2122;s name

#VNSVOHSBE *OUFSOBUJPOBM -UE $%& 5SBEJOH -UE Total

Cost

4IBSFIPMEJOH QFSDFOUBHF 2013

2012

(Unit: Thousand Baht) 4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT Allowance for loss on $BSSZJOH BNPVOUT CBTFE diminution in value on equity method - net

2013

2012

2013

2012

2013

2012

31.50

1,447

30.00

21,663

16,000

5,663

23,110

16,000

7,110

Annual Report 2013

Bumrungrad Hospital Public Company Limited

13.2 Share capital reduction of an associate %VSJOH UIF ZFBS FOEFE %FDFNCFS BO BTTPDJBUF #VNSVOHSBE *OUFSOBUJPOBM -UE SFEVDFE JUT SFHJTUFSFE BOE QBJE VQ TIBSF DBQJUBM GSPN #BIU NJMMJPO UP #BIU NJMMJPO 6TJOH UIF DPTU NFUIPE UIF TIBSF DBQJUBM SFEVDUJPO PG UIF associate resulted in a loss of Baht 7.3 million presented in the separate income statement for the year ended 31 %FDFNCFS BT UIF JOWFTUNFOU BDRVJTJUJPO DPTU #BIU QFS TIBSF XBT IJHIFS UIBO UIF BNPVOU QFS TIBSF SFUVSOFE UP UIF TIBSFIPMEFST "T B SFTVMU #VNSVOHSBE *OUFSOBUJPOBM -UE JT TUJMM BO BTTPDJBUF PG UIF $PNQBOZ 13.3 Sales of investment in an associate 0O +VMZ UIF $PNQBOZ TPME BMM JOWFTUNFOU JO #BOHLPL $IBJO )PTQJUBM 1MD UPUBMJOH NJMMJPO TIBSFT JODMVEJOH EJWJEFOE TIBSFT XIJDI UIF $PNQBOZ SFDFJWFE JO BU B QSJDF PG #BIU FBDI 5IF $PNQBOZ SFDFJWFE OFU DPOTJEFSBUJPO GSPN TFMMJOH BGUFS EFEVDUJPO PG EJSFDU USBOTBDUJPO DPTU UPUBMJOH #BIU NJMMJPO SFTVMUJOH JO HBJO incurred from sales of investment in associate for the year ended 31 December 2012 in the consolidated income statements BNPVOUJOH UP #BIU NJMMJPO BOE JO UIF TFQBSBUF JODPNF TUBUFNFOUT BNPVOUJOH UP #BIU NJMMJPO "T B SFTVMU PG UIF USBOTBDUJPO #BOHLPL $IBJO )PTQJUBM 1MD XBT OP MPOHFS UIF BTTPDJBUF PG UIF $PNQBOZ BOE NBEF JO BDDPSEBODF XJUI B SFTPMVUJPO PG UIF $PNQBOZkT #PBSE PG %JSFDUPST .FFUJOH IFME PO +VMZ %VSJOH UIF ZFBS UIF $PNQBOZ EFUFSNJOFE TIBSF PG QSPĂ&#x2021;U GSPN UIJT BTTPDJBUF GSPN UIF CFHJOOJOH PG UIJT ZFBS VOUJM UIF EJTQPTBM EBUF PG UIJT JOWFTUNFOU BNPVOUJOH UP #BIU NJMMJPO 13.4 Share of proĂ&#x2021;t (loss) and dividend received %VSJOH UIF ZFBST UIF $PNQBOZ SFDPHOJTFE JUT TIBSF PG QSPĂ&#x2021;U MPTT GSPN JOWFTUNFOUT JO BTTPDJBUFT JO UIF DPOTPMJEBUFE Ă&#x2021;OBODJBM TUBUFNFOUT BOE EJWJEFOE JODPNF JO UIF TFQBSBUF Ă&#x2021;OBODJBM TUBUFNFOUT BT GPMMPXT (Unit: Thousand Baht) Companyâ&#x20AC;&#x2122;s name

For the years ended 31 December $POTPMJEBUFE Ă&#x2021;OBODJBM TUBUFNFOUT 4FQBSBUF Ă&#x2021;OBODJBM TUBUFNFOUT 4IBSF PG QSPĂ&#x2021;U MPTT GSPN investments in associates Dividend received 2013 2012 2013 2012

#VNSVOHSBE *OUFSOBUJPOBM -UE $%& 5SBEJOH -UE #BOHLPL $IBJO )PTQJUBM 1MD Total

2,278 3,604 5,882

(16,968) 3,252 107,059 93,343

5,400 5,400

49,875 49,875

13.5 Summarised Ă&#x2021;nancial information of associates Financial information of the associates is summarised below.

Companyâ&#x20AC;&#x2122;s name

(Unit: Million Baht) Total revenues for 1BJE VQ DBQJUBM BT Total assets as at Total liabilities as the years ended at 31 December 31 December at 31 December 31 December 2013 2012 2013 2012 2013 2012 2013 2012

#VNSVOHSBE *OUFSOBUJPOBM -UE $%& 5SBEJOH -UE

4.6 10.0

761.0 13.0

774.0 30.3

27.4 1.3

47.8 0.1

14.60 0.5

14. OTHER LONG-TERM INVESTMENTS

Companyâ&#x20AC;&#x2122;s name

Chantaburi Country Club Co., Ltd. Less: Allowance for loss on diminution in value 0UIFS MPOH UFSN JOWFTUNFOUT OFU

1SPĂ&#x2021;U MPTT GPS the years ended 31 December 2013 2012

31.9 0.5

6.6 (0.5)

(53.9) (1.2)

(Unit: Thousand Baht) 4IBSFIPMEJOH QFSDFOUBHF 2013 2012

0.5

$POTPMJEBUFE Ă&#x2021;OBODJBM statements 2013 2012 4,500 (2,800) 1,700

4,500 (2,800) 1,700

4FQBSBUF Ă&#x2021;OBODJBM statements 2013 2012 4,500 (2,800) 1,700

4,500 (2,800) 1,700

Cost +BOVBSZ Increase from acquisition of a subsidiary Additions Disposals Transfer in (out) 31 December 2012 Additions Disposals Transfer in (out) 31 December 2013 Accumulated depreciation +BOVBSZ Depreciation for the year Depreciation on disposals 31 December 2012 Depreciation for the year Depreciation on disposals 31 December 2013 AlloXance for impairment loss +BOVBSZ "EEJUJPO EVSJOH UIF ZFBS 31 December 2012 %FDSFBTF EVSJOH UIF ZFBS 31 December 2013 34,881 629 35,510 35,510 17,007 501 17,508 585 18,093 -

1,045,034 209,734 2,466,613 397,135 2,863,748 -

1,188,459 158,423 (6,178) 1,340,704 287,349 (11,684) 1,616,369

21,599 (17,650) 50,384 4,120,984 521,462 (8,777) 577,626 5,211,295

4,066,651

130,704 26,331 (3,016) 154,019 49,451 203,470

14,167 (3,587) 10,860 546,681 84,873 18,591 650,145

525,241

1,799,989 309,310 (58,939) 2,050,360 359,830 (43,219) 2,366,971

291,450 (61,666) 1,405 3,155,633 450,393 (50,549) 3,555,477

2,924,444

361 361 (122) 239

793,567 126,209 (18,087) 901,689 85,838 (22,810) 964,717

47,897 (18,747) 17 1,172,292 85,687 (23,047) 44 1,234,976

1,143,125

233 233 (233) -

288,863 24,617 (3,556) 309,924 32,808 (4,104) 338,628

11,903 (3,831) 568 493,409 78,878 (6,064) 1,269 567,492

484,769

$POTPMJEBUFE Ă&#x2021;OBODJBM TUBUFNFOUT Medical Land leasehold accessory )PTQJUBM Equipment and SJHIU BOE MBOE #VJMEJOHT BOE equipment furniture improvement construction Facility systems equipment

1,211,845

Land

15. PROPERTY, PLANT AND EQUIPMENT

36,330 2,509 (147) 38,692 2,295 (2,010) 38,977

3,558 (147) 47,307 2,042 (2,470) 46,879

43,896

Motor vehicles

459,679 (63,234) 458,065 617,100 (597,530) 477,635

61,620

Assets under construction and installation

Annual Report 2013

594 594 (355) 239

4,254,919 647,900 (89,923) 4,812,896 818,156 (83,827) 5,547,225

1,045,034 1,060,616 (105,628) 12,496,494 2,237,570 (90,907) 14,643,157

10,496,472

Total

(Unit: Thousand Baht)

Net book value 1,211,845 17,874 2,878,192 394,537 +BOVBSZ 2,466,613 18,002 2,780,280 392,662 31 December 2012 2,863,748 17,417 3,594,926 446,675 31 December 2013 Depreciation for the years #BIU NJMMJPO JODMVEFE JO DPTU PG IPTQJUBM PQFSBUJPOT BOE UIF CBMBODF JO BENJOJTUSBUJWF FYQFOTFT

#BIU NJMMJPO JODMVEFE JO DPTU PG IPTQJUBM PQFSBUJPOT BOE UIF CBMBODF JO BENJOJTUSBUJWF FYQFOTFT

Land 1,124,455 1,105,273 1,188,506

349,558 270,242 270,020

195,906 183,252 228,864

$POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT Medical Land leasehold accessory )PTQJUBM Equipment and SJHIU BOE MBOE #VJMEJOHT BOE equipment furniture improvement construction Facility systems equipment 7,566 8,615 7,902

Motor vehicles 61,620 458,065 477,635

Assets under construction and installation

647,900 818,156

6,241,553 7,683,004 9,095,693

Total

(Unit: Thousand Baht)

Bumrungrad Hospital Public Company Limited

Cost 1,211,845 15,563 3,390,442 500,471 +BOVBSZ 209,734 629 20,747 14,166 Additions (17,650) (3,587) Disposals 50,384 10,860 Transfer in (out) 1,421,579 16,192 3,443,923 521,910 31 December 2012 397,135 521,341 84,873 Additions (8,777) Disposals 577,626 18,591 Transfer in (out) 1,818,714 16,192 4,534,113 625,374 31 December 2013 Accumulated depreciation 9,608 460,634 98,225 +BOVBSZ 501 157,557 26,198 Depreciation for the year (6,177) (3,017) Depreciation on disposals 10,109 612,014 121,406 31 December 2012 585 286,531 49,318 Depreciation for the year (11,684) Depreciation on disposals 10,694 886,861 170,724 31 December 2013 AlloXance for impairment loss +BOVBSZ "EEJUJPO EVSJOH UIF ZFBS 31 December 2012 %FDSFBTF EVSJOH UIF ZFBS 31 December 2013 Net book value 1,211,845 5,955 2,929,808 402,246 +BOVBSZ 1,421,579 6,083 2,831,909 400,504 31 December 2012 1,818,714 5,498 3,647,252 454,650 31 December 2013 Depreciation for the years #BIU NJMMJPO JODMVEFE JO DPTU PG IPTQJUBM PQFSBUJPOT BOE UIF CBMBODF JO BENJOJTUSBUJWF FYQFOTFT

#BIU NJMMJPO JODMVEFE JO DPTU PG IPTQJUBM PQFSBUJPOT BOE UIF CBMBODF JO BENJOJTUSBUJWF FYQFOTFT

Land

Land leasehold SJHIU BOE MBOE #VJMEJOHT BOE improvement construction Facility systems 879,078 47,893 (18,747) 17 908,241 85,543 (23,047) 44 970,781 557,307 126,048 (18,088) 665,267 83,851 (22,810) 726,308 361 361 (122) 239 321,771 242,613 244,234

2,503,392 286,919 (60,547) 1,406 2,731,170 450,393 (50,549) 3,131,014 1,343,954 308,984 (57,820) 1,595,118 359,830 (43,219) 1,911,729 1,159,438 1,136,052 1,219,285

4FQBSBUF Ă&#x2021;OBODJBM TUBUFNFOUT Medical accessory )PTQJUBM equipment equipment

173,173 160,822 206,853

233 233 (233) -

189,871 24,170 (3,556) 210,485 32,389 (4,104) 238,770

363,044 11,760 (3,831) 567 371,540 78,878 (6,064) 1,269 445,623

Equipment and furniture

7,566 8,616 7,903

13,894 2,509 (147) 16,256 2,295 (2,010) 16,541

21,460 3,559 (147) 24,872 2,042 (2,470) 24,444

Motor vehicles

61,620 458,065 477,635

61,620 459,679 (63,234) 458,065 617,100 (597,530) 477,635

Assets under construction and installation

Annual Report 2013

645,967 814,799

6,273,422 6,666,243 8,082,024

594 594 (355) 239

2,673,493 645,967 (88,805) 3,230,655 814,799 (83,827) 3,961,627

8,946,915 1,055,086 (104,509) 9,897,492 2,237,305 (90,907) 12,043,890

Total

(Unit: Thousand Baht)

Bumrungrad Hospital Public Company Limited

"T BU %FDFNCFS UIF $PNQBOZ IBE BO PVUTUBOEJOH CBMBODF PG XPSL VOEFS DPOTUSVDUJPO PG CVJMEJOH BOE CVJMEJOH JNQSPWFNFOU PG #BIU NJMMJPO $POTUSVDUJPO PG UIF CVJMEJOH BOE CVJMEJOH JNQSPWFNFOU IBWF CFFO Ã&#x2021;OBODFE CZ MPOH UFSN EFCFOUVSF BOE CPSSPXJOH DPTUT UPUBMJOH #BIU NJMMJPO XFSF DBQJUBMJTFE EVSJOH UIF ZFBS FOEFE %FDFNCFS 5IF XFJHIUFE BWFSBHF SBUF VTFE UP EFUFSNJOF UIF BNPVOU PG CPSSPXJOH DPTUT FMJHJCMF GPS DBQJUBMJTBUJPO XBT "T BU %FDFNCFS DFSUBJO FRVJQNFOU JUFNT IBWF CFFO GVMMZ EFQSFDJBUFE CVU BSF TUJMM JO VTF 5IF HSPTT DBSSZJOH BNPVOU CFGPSF EFEVDUJOH BDDVNVMBUFE EFQSFDJBUJPO PG UIPTF BTTFUT BNPVOUFE UP #BIU NJMMJPO 4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT #BIU NJMMJPO #BIU NJMMJPO 4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT #BIU NJMMJPO

16. INTANGIBLE ASSETS (Unit: Thousand Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT Computer software Cost +BOVBSZ Additions 31 December 2012 Additions 31 December 2013 Accumulated amortisation +BOVBSZ "NPSUJTBUJPO EVSJOH UIF ZFBS 3FBMJTFE HBJO PO TBMFT PG software in the past 31 December 2012 "NPSUJTBUJPO EVSJOH UIF ZFBS 3FBMJTFE HBJO PO TBMFT PG software in the past 31 December 2013 AlloXance for impairment loss +BOVBSZ 31 December 2012 31 December 2013 Net book value +BOVBSZ 31 December 2012 31 December 2013

Total

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT Compensation Computer for business software combination

Total

979,459 37,276 1,016,735 13,762 1,030,497

1,015,248 37,210 1,052,458 13,384 1,065,842

192,928 192,928 192,928

1,208,176 37,210 1,245,386 13,384 1,258,770

353,022 61,180

367,554 61,082

65,917 -

433,471 61,082

(3,673) 410,529 64,110

428,636 63,993

65,917 -

494,553 63,993

(3,673) 470,966

492,629

65,917

558,546

370,233 370,233 370,233

127,011 127,011 127,011

497,244 497,244 497,244

256,204 235,973 189,298

277,461 253,589 202,980

(Unit: Thousand Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT 2013 2012 Trade payables - unrelated parties Construction and medical equipment payables Other payables - related parties Other payables - unrelated parties Total trade and other payables

692,190 145,628 247 20,817 858,882

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT 2013 2012

655,814 125,914 51 18,170 799,949

684,962 145,628 392 19,407 850,389

650,077 125,914 51 19,333 795,375

18. LONG-TERM DEBENTURES 5IF &YUSBPSEJOBSZ (FOFSBM .FFUJOH PG UIF $PNQBOZkT TIBSFIPMEFST IFME PO %FDFNCFS BQQSPWFE UIF JTTVBODF BOE PGGFSJOH PG VOTFDVSFE VOTVCPSEJOBUFE EFCFOUVSFT JO #BIU DVSSFODZ XJUI UIF QSJODJQBM BNPVOU OPU FYDFFEJOH #BIU million and the tenor not more than 10 years. "T BU %FDFNCFS BOE EFUBJM PG MPOH UFSN EFCFOUVSFT BSF BT GPMMPXT (Unit: Thousand Baht) No. of units Series Maturity date (Thousand units) 1,500 1 Entirely redeemed on 20 December 2016 (5 years) 1,000 2 Entirely redeemed on 20 December 2018 (7 years) 2,500 3 Entirely redeemed on 20 December 2021 (10 years) Total -FTT %FGFSSFE EFCFOUVSF JTTVJOH DPTUT -POH UFSN EFCFOUVSFT OFU

$BSSZJOH BNPVOU 2013 2012

1BS WBMVF (Baht)

Interest rate Q B

Term of interest payment

1,000

4.13

Semi-annual

1,500,000

1,000

4.59

Semi-annual

1,000,000

1,000

4.97

Semi-annual

2,500,000

5,000,000 (33,910) 4,966,090

5,000,000 (39,534) 4,960,466

Under the terms and conditions of the debentures, the Company has to comply with certain restrictions and maintain certain Ã&#x2021;OBODJBM SBUJPT XIJDI JODMVEF B NBJOUFOBODF PG B OFU EFCU UP FRVJUZ SBUJP OPU FYDFFEJOH C NBJOUFOBODF PG B OFU EFCU UP &#*5%" SBUJP OPU FYDFFEJOH

19. UNDRAWN LOAN FACILITIES As at 31 December 2013, the Group has short-term credit facilities which have not yet been drawn down amounted to Baht 3,310 million (2012: Baht 3,310 million).

Annual Report 2013

17. TRADE AND OTHER PAYABLES

Bumrungrad Hospital Public Company Limited

20. PROVISION FOR LONG-TERM EMPLOYEE BENEFITS 1SPWJTJPO GPS MPOH UFSN FNQMPZFF CFOFĂ&#x2021;UT XBT BT GPMMPXT (Unit: Thousand Baht) $POTPMJEBUFE Ă&#x2021;OBODJBM TUBUFNFOUT 0UIFS MPOH UFSN FNQMPZFF CFOFĂ&#x2021;UT 1BJE BOOVBM MFBWF

Compensations on employeesâ&#x20AC;&#x2122; retirement 2013

DeĂ&#x2021;ned beneĂ&#x2021;t obligation at beginning of year Current service cost Interest cost #FOFĂ&#x2021;UT QBJE EVSJOH UIF ZFBS

Actuarial loss 1BTU TFSWJDF DPTU DeĂ&#x2021;ned beneĂ&#x2021;t obligation at end of year Provision for long-term employee beneĂ&#x2021;ts at end of year

2012

2013

2012

2013

Total

2012

2013

2012

289,502 41,642 10,276 (24,849)

210,767 18,415 9,365 (15,329)

56,312 11,457 2,001 (4,525)

38,268 2,842 1,368 (8,562)

30,316 7,611 (382)

28,726 2,349 (759)

376,130 60,710 12,277 (29,756)

277,761 23,606 10,733 (24,650)

12,173

66,284

(20,976)

22,396

(8,803)

88,680

(6,305)

(17,277)

(23,582)

322,439

289,502

26,992

56,312

37,545

30,316

386,976

376,130

322,439

289,502

26,992

56,312

37,545

30,316

386,976

376,130

(Unit: Thousand Baht) 4FQBSBUF Ă&#x2021;OBODJBM TUBUFNFOUT 0UIFS MPOH UFSN FNQMPZFF CFOFĂ&#x2021;UT 1BJE BOOVBM MFBWF

Compensations on employeesâ&#x20AC;&#x2122; retirement 2013

2012

2013

2012

2013

Total

2012

2013

2012

DeĂ&#x2021;ned beneĂ&#x2021;t obligation at beginning of year

288,294

207,317

56,222

37,884

29,693

27,752

374,209

272,953

5SBOTGFS PG EFĂ&#x2021;OFE CFOFĂ&#x2021;U PCMJHBUJPO from subsidiary Current service cost Interest cost #FOFĂ&#x2021;UT QBJE EVSJOH UIF ZFBS

38,736 10,241 (21,255)

366 17,917 9,277 (15,328)

11,414 1,997 (4,515)

129 2,808 1,358 (8,562)

7,642 (27)

24 2,677 (760)

57,792 12,238 (25,797)

519 23,402 10,635 (24,650)

12,041

68,745

(20,926)

22,605

(8,885)

91,350

(6,289)

(17,257)

(23,546)

321,768

288,294

26,935

56,222

37,308

29,693

386,011

374,209

321,768

288,294

26,935

56,222

37,308

29,693

386,011

374,209

Actuarial loss 1BTU TFSWJDF DPTU DeĂ&#x2021;ned beneĂ&#x2021;t obligation at end of year Provision for long-term employee beneĂ&#x2021;ts at end of year

-POH UFSN FNQMPZFF CFOFÃ&#x2021;U FYQFOTFT JODMVEFE JO UIF JODPNF TUBUFNFOU XBT BT GPMMPXT (Unit: Thousand Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT

Current service cost Interest cost

2013

2012

2013

2012

60,710 12,277

23,606 10,733

57,792 12,238

23,402 10,635

22,396

(50,597)

22,605

56,735

19,433

56,642

33,291

1,157

33,291

23,444

18,276

23,351

"DUVBSJBM MPTT BSJTJOH GSPN PUIFS MPOH UFSN (50,549) CFOFÃ&#x2021;UT SFDPHOJTFE EVSJOH UIF ZFBS Total expenses recognised in the income statement 22,438 -JOF JUFNT VOEFS XIJDI TVDI FYQFOTFT BSF JODMVEFE JO UIF JODPNF TUBUFNFOU 1,157 Cost of hospital operations "ENJOJTUSBUJWF FYQFOTFT 21,281

5IF DVNVMBUJWF BNPVOU PG BDUVBSJBM MPTTFT SFDPHOJTFE JO PUIFS DPNQSFIFOTJWF JODPNF BOE UBLFO BT QBSU PG SFUBJOFE FBSOJOHT PG UIF (SPVQ BT BU %FDFNCFS BNPVOUFE UP #BIU NJMMJPO JO UIF DPOTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT TFQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT #BIU NJMMJPO #BIU NJMMJPO TFQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT #BIU NJMMJPO

1SJODJQBM BDUVBSJBM BTTVNQUJPOT BU UIF WBMVBUJPO EBUF XFSF BT GPMMPXT $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT

Discount rate "WFSBHF GVUVSF TBMBSZ JODSFBTF SBUF 4UBGG UVSOPWFS SBUF EFQFOEJOH PO BHF

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT

2013

2012

2013

2012

Q B

3.5 - 3.9 5.0 0.0 - 20.0

3.6 - 4.4 4.0 0.0 - 22.0

3.9 5.0 0.0 - 14.0

3.6 4.0 0.0 - 14.0

"NPVOUT PG EFÃ&#x2021;OFE CFOFÃ&#x2021;U PCMJHBUJPO GPS UIF DVSSFOU BOE QSFWJPVT GPVS QFSJPET BSF BT GPMMPXT %FÃ&#x2021;OFE CFOFÃ&#x2021;U PCMJHBUJPO

:FBS :FBS :FBS :FBS :FBS

(Unit: Thousand Baht) &YQFSJFODF BEKVTUNFOUT PO UIF PCMJHBUJPO

$POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT

$POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT

349,431 345,814 249,035 243,939 214,273

348,703 344,516 245,201 240,731 211,667

(3,098) 56,290 -

(3,152) 57,786 -

Annual Report 2013

Bumrungrad Hospital Public Company Limited

21. CONVERTIBLE BONDS TREATED AS EQUITY SECURITIES Convertible bonds treated as equity securities as at 31 December 2013 and 2012 are as follows. B 1BSUMZ TFDVSFE DPOWFSUJCMF CPOET JO BO BNPVOU PG #BIU NJMMJPO XJUI B NBUVSJUZ PG ZFBST BOE B DPVQPO SBUF PG GPS ZFBST GPS ZFBST BOE GPS ZFBST QBZBCMF TFNJ BOOVBMMZ 5IF DVSSFOU DPOWFSTJPO price JT #BIU QFS POF PSEJOBSZ TIBSF 5IF CPOEIPMEFST IBWF UIF PQUJPO UP DPOWFSU UIF CPOET JOUP PSEJOBSZ TIBSFT UISPVHI PVU UIF MJGF PG UIF CPOET 5IF CPOET XFSF TFDVSFE CZ UIF NPSUHBHF PG UIF $PNQBOZkT MBOE 0O "VHVTU UIF $PNQBOZ SFMFBTFE UIF NPSUHBHF PG UIF MBOE b) 1BSUMZ TFDVSFE DPOWFSUJCMF CPOET JO BO BNPVOU PG #BIU NJMMJPO BGUFS DPOWFSTJPO CZ UIF CPOEIPMEFS PG #BIU NJMMJPO JO UIF ZFBS XJUI B NBUVSJUZ PG ZFBST BOE B DPVQPO SBUF PG QFS BOOVN QBZBCMF TFNJ BOOVBMMZ 5IF DVSSFOU conversion price is Baht 3.50 per one ordinary share. The bondholders have the option to convert the bonds into ordinary TIBSFT UISPVHIPVU UIF MJGF PG UIF CPOET 5IF CPOET XFSF TFDVSFE CZ UIF NPSUHBHF PG UIF $PNQBOZkT MBOE 0O "VHVTU UIF $PNQBOZ SFMFBTFE UIF NPSUHBHF PG UIF MBOE 0O /PWFNCFS UIF NFFUJOH PG UIF CPOETk IPMEFST BOE PO /PWFNCFS BO FYUSBPSEJOBSZ NFFUJOH PG UIF $PNQBOZkT TIBSFIPMEFST QBTTFE BQQSPWBM PG UIF BNFOENFOU UP UIF UFSNT BOE DPOEJUJPOT HPWFSOJOH UIF SJHIUT BOE PCMJHBUJPOT PG UIF JTTVFS BOE UIF CPOEIPMEFST XIJDI HJWFT UIF $PNQBOZ UIF PQUJPO UP FJUIFS SFEFFN UIF DPOWFSUJCMF CPOET or to convert the bonds into ordinary shares on the maturity date. 0O %FDFNCFS UIF NFFUJOH PG CPOETk IPMEFST BOE PO %FDFNCFS BO FYUSBPSEJOBSZ NFFUJOH PG UIF $PNQBOZkT TIBSFIPMEFST QBTTFE BQQSPWBM PG UIF BNFOENFOU UP UIF UFSNT BOE DPOEJUJPOT HPWFSOJOH UIF SJHIUT BOE PCMJHBUJPOT PG UIF JTTVFS BOE UIF CPOEIPMEFST XIJDI UP FYUFOE UIF UFOVSF PG UIF DPOWFSUJCMF CPOET GPS BEEJUJPOBM ZFBST NBUVSJOH PO "VHVTU BOE UIBU UIF TFDVSJUZ PG UIF DPOWFSUJCMF CPOET CF SFMFBTFE JO BDDPSEBODF XJUI UIF TBNF UFSN PO "VHVTU

"DDPSEJOH UP UIF 5IBJ "DDPVOUJOH 4UBOEBSE /P l'JOBODJBM *OTUSVNFOUT %JTDMPTVSF BOE 1SFTFOUBUJPOm CFDBVTF UIF Company has the option to either redeem the convertible bonds or to convert them into ordinary shares on the maturity date, BOE EFMJWFSZ PG FRVJUZ TFDVSJUJFT XJMM OPU CF DIBOHFE CZ GBJS WBMVF PG TVDI FRVJUZ TFDVSJUJFT TJODF UIF $PNQBOZ EFUFSNJOFE B DFSUBJO DPOWFSTJPO QSJDF TP UIF DPOWFSUJCMF CPOET BSF OPU DPWFSFE CZ UIF EFÃ&#x2021;OJUJPO PG Ã&#x2021;OBODJBM MJBCJMJUJFT BOE BSF UP CF USFBUFE BT FRVJUZ TFDVSJUJFT *O BEEJUJPO UIF $PNQBOZkT NBOBHFNFOU FYQSFTTFT UIFJS JOUFOUJPO UP DPOWFSU UIFTF CPOET JOUP PSEJOBSZ TIBSFT on the maturity date. Therefore, the whole amounts of the convertible bonds are presented as part of shareholdersâ&#x20AC;&#x2122; equity and future interest on the bonds will be recorded as a deduction from shareholdersâ&#x20AC;&#x2122; equity. The Company has reserved 178,571,433 ordinary shares to accommodate the above convertible bonds. *OUFSFTU FYQFOTF GPS UIF ZFBS PG UIF DPOWFSUJCMF CPOET BNPVOUFE UP #BIU NJMMJPO #BIU NJMMJPO CFJOH SFDPSEFE BT B SFEVDUJPO UP VOBQQSPQSJBUFE SFUBJOFE FBSOJOHT

22. SHARE CAPITAL 1SFGFSFODF TIBSFIPMEFST IBWF UIF TBNF SJHIU BT UIF PSEJOBSZ TIBSFIPMEFST FYDFQU UIBU UIFZ BSF FOUJUMFE UP SFDFJWF BO BOOVBM EJWJEFOE BU PG QSFGFSFODF TIBSFT DBQJUBM QSJPS UP UIF EJWJEFOE QBJE UP UIF PSEJOBSZ TIBSFIPMEFST 1SFGFSFODF TIBSFT can be converted into ordinary shares. *O UIF Ã&#x2021;STU RVBSUFS PG QSFGFSFODF TIBSFT TIBSFT XFSF DPOWFSUFE JOUP PSEJOBSZ TIBSFT BU SBUJP PG POF QSFGFSFODF TIBSF UP POF PSEJOBSZ TIBSF 5IF $PNQBOZ SFHJTUFSFE UIJT DPOWFSTJPO XJUI UIF .JOJTUSZ PG $PNNFSDF PO 7 March 2013. 23. STATUTORY RESERVE 1VSTVBOU UP 4FDUJPO PG UIF 1VCMJD -JNJUFE $PNQBOJFT "DU # & UIF $PNQBOZ JT SFRVJSFE UP TFU BTJEF UP B TUBUVUPSZ SFTFSWF BU MFBTU PG JUT OFU QSPÃ&#x2021;U BGUFS EFEVDUJOH BDDVNVMBUFE EFÃ&#x2021;DJU CSPVHIU GPSXBSE JG BOZ VOUJM UIF SFTFSWF SFBDIFT PG UIF SFHJTUFSFE DBQJUBM 5IF TUBUVUPSZ SFTFSWF JT OPU BWBJMBCMF GPS EJWJEFOE EJTUSJCVUJPO "U QSFTFOU UIF TUBUVUPSZ SFTFSWF IBT fully been set aside.

(Unit: Thousand Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT 2013

4BMBSZ BOE XBHFT BOE PUIFS FNQMPZFF CFOFÃ&#x2021;UT 1IZTJDJBOTk GFF Depreciation Amortisation Loss on diminution in value of investment in a subsidiary Loss from share capital reduction of a subsidiary Loss from share capital reduction of an associate 1SPQFSUZ QMBOU BOE FRVJQNFOU SFOUBM FYQFOTFT GSPN PQFSBUJOH MFBTF BHSFFNFOUT #VJMEJOH BOE FRVJQNFOU NBJOUFOBODF FYQFOTFT "EWFSUJTJOH BOE QVCMJD SFMBUJPO FYQFOTFT Medicine, medical supply and other supply consumptions

2012

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT 2013

2012

2,605,015 3,388,190 818,156 64,110 -

2,400,473 3,217,337 647,900 61,180 -

2,560,264 3,356,698 814,799 63,993 -

2,361,642 3,189,607 645,967 61,082 50,000 1,072 7,255

76,040 211,824 210,102

79,799 203,881 170,853

74,961 211,523 200,504

79,771 203,805 164,725

2,617,927

2,514,152

2,577,827

2,481,494

25. INCOME TAX *ODPNF UBY FYQFOTFT GPS UIF ZFBST FOEFE %FDFNCFS BOE BSF NBEF VQ BT GPMMPXT (Unit: Thousand Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT 2013

Current income tax: $VSSFOU JODPNF UBY GPS UIF ZFBS Deferred tax: 3FMBUJOH UP PSJHJOBUJPO BOE SFWFSTBM PG UFNQPSBSZ differences Income tax expense reported in the income statement

2012 (Restated)

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT 2013

2012 (Restated)

649,790

689,825

639,979

683,115

(24,382)

108,939

(24,529)

108,963

625,408

798,764

615,450

792,078

5IF BNPVOUT PG JODPNF UBY SFMBUJOH UP FBDI DPNQPOFOU PG PUIFS DPNQSFIFOTJWF JODPNF GPS UIF ZFBST FOEFE %FDFNCFS 2013 and 2012 are as follows. (Unit: Thousand Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT 2013

2012 (Restated)

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT 2013

2012 (Restated)

%FGFSSFE UBY SFMBUJOH UP BDUVBSJBM MPTT

(3,624)

(13,460)

(3,624)

(13,749)

Total

(3,624)

(13,460)

(3,624)

(13,749)

Annual Report 2013

24. EXPENSES BY NATURE 4JHOJÃ&#x2021;DBOU FYQFOTFT CZ OBUVSF BSF BT GPMMPXT

Bumrungrad Hospital Public Company Limited

3FDPODJMJBUJPO CFUXFFO JODPNF UBY FYQFOTFT BOE UIF QSPEVDU PG BDDPVOUJOH QSPÃ&#x2021;U NVMUJQMJFE CZ UIF BQQMJDBCMF UBY SBUFT for the years ended 31 December 2013 and 2012 are as follow. (Unit: Thousand Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT

"DDPVOUJOH QSPÃ&#x2021;U CFGPSF UBY "QQMJDBCMF UBY SBUF "DDPVOUJOH QSPÃ&#x2021;U CFGPSF UBY NVMUJQMJFE CZ BQQMJDBCMF UBY SBUF Effects of: 5BY FYFNQU SFWFOVF /PO EFEVDUJCMF FYQFOTFT "EEJUJPOBM FYQFOTF EFEVDUJPOT BMMPXFE Others Total *ODPNF UBY FYQFOTFT SFQPSUFE JO UIF income statement

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT

2013

2012 (Restated)

2013

2012 (Restated)

3,146,190

3,357,276

3,091,009

3,358,808

629,238

772,173

618,202

772,526

(1,080)

2,081

23,509

2,029

23,659

(1,420)

(3,983)

(1,420)

(3,983)

(3,411)

7,065

(2,281)

(124)

(3,830)

26,591

(2,752)

19,552

625,408

798,764

615,450

792,078

5IF DPNQPOFOUT PG EFGFSSFE UBY BTTFUT BOE EFGFSSFE UBY MJBCJMJUJFT BSF BT GPMMPXT (Unit: Thousand Baht) 4UBUFNFOUT PG Ã&#x2021;OBODJBM QPTJUJPO $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT As at As at As at 31 December 31 December +BOVBSZ 2013 2012 2012 (Restated)

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT As at As at As at 31 December 31 December +BOVBSZ 2013 2012 2012 (Restated)

Deferred tax assets Allowance for doubtful accounts

20,744

17,267

14,179

20,744

17,267

14,179

Allowance for diminution in value of inventories

Allowance for diminution in value of investments

13,200

3,200

13,200

3,200

"MMPXBODF GPS JOUBOHJCMF BTTFUT JNQBJSNFOUT

13,135

27,640

44,064

13,135

27,640

44,064

"DDVNVMBUFE EFQSFDJBUJPO CVJMEJOH BOE FRVJQNFOU

26,174

1,224

26,174

1,224

Accumulated amortisation - computer software

3,757

1,846

3,757

1,846

80,691

79,682

62,118

80,498

79,303

61,479

6OVTFE UBY MPTT

84,928

5BYBCMF PWFS BDDPVOUJOH SFWFOVF

19,118

157,739

130,859

227,612

157,508

130,480

226,968

%FGFSSFE EFCFOUVSF JTTVJOH DPTUT

(6,782)

(7,907)

(9,181)

(6,782)

(7,907)

(9,181)

Total

(6,782)

(7,907)

(9,181)

(6,782)

(7,907)

(9,181)

150,957

122,952

218,431

150,726

122,573

217,787

1SPWJTJPO GPS MPOH UFSN FNQMPZFF CFOFÃ&#x2021;UT

Total Deferred tax liabilities

Deferred tax assets - net

*O 0DUPCFS UIF DBCJOFU QBTTFE B SFTPMVUJPO UP SFEVDF UIF DPSQPSBUF JODPNF UBY SBUF GSPN UP JO BOE UIFO UP GSPN *O BEEJUJPO JO PSEFS UP DPNQMZ XJUI UIF SFTPMVUJPO PG UIF DBCJOFU JO %FDFNCFS UIF EFDSFBTFT JO UBY SBUFT GPS XFSF FOBDUFE UISPVHI B SPZBM EFDSFF 5IF (SPVQ IBT SFÃ&#x2C6;FDUFE UIF DIBOHFT JO UIF JODPNF UBY SBUFT JO JUT EFGFSSFE UBY DBMDVMBUJPO BT QSFTFOUFE BCPWF "T BU %FDFNCFS UIF TVCTJEJBSJFT IBT VOVTFE UBY MPTTFT UPUBMJOH #BIU NJMMJPO #BIU NJMMJPO PO XIJDI EFGFSSFE UBY BTTFUT IBWF OPU CFFO SFDPHOJTFE BT UIF TVCTJEJBSJFT CFMJFWF GVUVSF UBYBCMF QSPÃ&#x2021;UT NBZ OPU CF TVÃ¨DJFOU UP BMMPX VUJMJTBUJPO PG UIF VOVTFE UBY MPTTFT

26. EARNINGS PER SHARE #BTJD FBSOJOHT QFS TIBSF JT DBMDVMBUFE CZ EJWJEJOH QSPÃ&#x2021;U GPS UIF ZFBS BUUSJCVUBCMF UP FRVJUZ IPMEFST PG UIF $PNQBOZ FYDMVEJOH PUIFS DPNQSFIFOTJWF JODPNF CZ UIF XFJHIUFE BWFSBHF OVNCFS PG PSEJOBSZ TIBSFT JO JTTVF EVSJOH UIF ZFBS

%JMVUFE FBSOJOHT QFS TIBSF JT DBMDVMBUFE CZ EJWJEJOH QSPÃ&#x2021;U GPS UIF ZFBS BUUSJCVUBCMF UP FRVJUZ IPMEFST PG UIF $PNQBOZ FYDMVEJOH PUIFS DPNQSFIFOTJWF JODPNF CZ UIF XFJHIUFE BWFSBHF OVNCFS PG PSEJOBSZ TIBSFT JO JTTVF EVSJOH UIF ZFBS QMVT UIF XFJHIUFE BWFSBHF OVNCFS PG PSEJOBSZ TIBSFT XIJDI XPVME OFFE UP CF JTTVFE UP DPOWFSU BMM EJMVUJWF QPUFOUJBM PSEJOBSZ TIBSFT JOUP PSEJOBSZ TIBSFT 5IF DBMDVMBUJPO BTTVNFT UIBU UIF DPOWFSTJPO UPPL QMBDF FJUIFS BU UIF CFHJOOJOH PG UIF ZFBS PS PO UIF EBUF the potential ordinary shares were issued. 5IF GPMMPXJOH UBCMFT TFU GPSUI UIF DPNQVUBUJPO PG CBTJD BOE EJMVUFE FBSOJOHT QFS TIBSF $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT 8FJHIUFE BWFSBHF OVNCFS PG ordinary shares

1SPÃ&#x2021;U GPS UIF ZFBS 2013

2012

2013

2012

(Thousand Baht) (Thousand Baht) (Thousand Shares) (Thousand Shares) (Restated) Basic earnings per share 1SPÃ&#x2021;U BUUSJCVUBCMF UP FRVJUZ 2,520,782 holders of the company Effect of dilutive potential ordinary shares 1SFGFSFODF TIBSFT Convertible bonds Diluted earnings per share 1SPÃ&#x2021;U PG PSEJOBSZ TIBSFIPMEFST BTTVNJOH UIF DPOWFSTJPO PG 2,520,782 dilutive potential ordinary shares

2,557,793

728,530

728,391

1,522

1,661

137,363

2,557,793

867,415

&BSOJOHT QFS TIBSF 2013

2012

(Baht)

(Baht) (Restated)

3.46

3.51

2.91

2.95

Annual Report 2013

Bumrungrad Hospital Public Company Limited

4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT 8FJHIUFE BWFSBHF OVNCFS PG ordinary shares

1SPÃ&#x2021;U GPS UIF ZFBS 2013

2012

2013

2012

(Thousand Baht) (Thousand Baht) (Thousand Shares) (Thousand Shares) (Restated) Basic earnings per share 1SPÃ&#x2021;U BUUSJCVUBCMF UP FRVJUZ 2,475,559 holders of the company Effect of dilutive potential ordinary shares 1SFGFSFODF TIBSFT Convertible bonds Diluted earnings per share 1SPÃ&#x2021;U PG PSEJOBSZ TIBSFIPMEFST BTTVNJOH UIF DPOWFSTJPO PG dilutive potential ordinary shares 2,475,559

2,566,730

728,530

728,391

1,522

1,661

137,363

2,566,730

867,415

&BSOJOHT QFS TIBSF 2013

2012

(Baht)

(Baht) (Restated)

3.40

3.52

2.85

2.96

27. SEGMENT INFORMATION 0QFSBUJOH TFHNFOU JOGPSNBUJPO JT SFQPSUFE JO B NBOOFS DPOTJTUFOU XJUI UIF JOUFSOBM SFQPSUT UIBU BSF SFHVMBSMZ SFWJFXFE CZ UIF DIJFG PQFSBUJOH EFDJTJPO NBLFS JO PSEFS UP NBLF EFDJTJPOT BCPVU UIF BMMPDBUJPO PG SFTPVSDFT UP UIF TFHNFOU BOE BTTFTT JUT performance. 5IF POF NBJO SFQPSUBCMF PQFSBUJOH TFHNFOU PG UIF (SPVQ JT IPTQJUBM BOE IFBMUI DBSF DFOUFS BOE UIF TJOHMF HFPHSBQIJDBM BSFB PG UIFJS PQFSBUJPOT JT 5IBJMBOE 4FHNFOU QFSGPSNBODF JT NFBTVSFE CBTFE PO PQFSBUJOH QSPÃ&#x2021;U PS MPTT PO B CBTJT DPOTJTUFOU XJUI UIBU VTFE UP NFBTVSF PQFSBUJOH QSPÃ&#x2021;U PS MPTT JO UIF Ã&#x2021;OBODJBM TUBUFNFOUT "T B SFTVMU BMM PG UIF SFWFOVFT PQFSBUJOH QSPÃ&#x2021;UT BOE BTTFUT BT SFÃ&#x2C6;FDUFE JO UIFTF Ã&#x2021;OBODJBM TUBUFNFOUT QFSUBJO UP UIF BGPSFNFOUJPOFE SFQPSUBCMF PQFSBUJOH TFHNFOU BOE HFPHSBQIJDBM BSFB 'PS UIF ZFBST BOE UIF (SPVQ IBT OP NBKPS DVTUPNFS XJUI SFWFOVFT PG PS NPSF PG UIF (SPVQkT SFWFOVFT 28.

PROVIDENT FUND 5IF (SPVQ BOE JUT FNQMPZFFT IBWF KPJOUMZ FTUBCMJTIFE B QSPWJEFOU GVOE JO BDDPSEBODF XJUI UIF 1SPWJEFOU 'VOE "DU # & &NQMPZFFT DPOUSJCVUFE UP UIF GVOE NPOUIMZ BU UIF SBUF PG PG UIFJS CBTJD TBMBSJFT BOE UIF $PNQBOZ PS TVCTJEJBSJFT DPOUSJCVUFE PG CBTJD TBMBSZ 5IF GVOE XIJDI JT NBOBHFE CZ #VBMVBOH 4FDVSJUJFT 1VCMJD $PNQBOZ -JNJUFE XJMM CF QBJE UP FNQMPZFFT VQPO UFSNJOBUJPO JO BDDPSEBODF XJUI UIF GVOE SVMFT %VSJOH UIF ZFBS UIF (SPVQ DPOUSJCVUFE #BIU million (2012: Baht 55.2 million) to the fund.

29. DIVIDENDS PAID Dividends Final dividends for 2012 *OUFSJN EJWJEFOET PO PQFSBUJOH SFTVMUT GPS UIF TJY NPOUI QFSJPE FOEFE +VOF Total dividend for 2013 Final dividends for 2011 *OUFSJN EJWJEFOET PO PQFSBUJOH SFTVMUT GPS UIF TJY NPOUI QFSJPE FOEFE +VOF Total dividend for 2012

Approved by "OOVBM (FOFSBM .FFUJOH PG UIF TIBSFIPMEFST on 30 April 2013 #PBSE PG %JSFDUPSTk NFFUJOH PO "VHVTU

"OOVBM (FOFSBM .FFUJOH PG UIF TIBSFIPMEFST on 25 April 2012 #PBSE PG %JSFDUPSTk NFFUJOH PO "VHVTU

Total dividends (Thousand Baht)

Dividend per share (Baht)

876,054

1.20

511,031

0.70

1,387,085

1.90

474,471

0.65

438,028

0.60

912,499

1.25

(Unit: Million Baht) Details of commitments 1) /VSTJOH EPSNJUPSZ MBOE SFOUBM FYQFOTF TIBMM CF FYUFOEFE GPS B GVSUIFS QFSJPE PG ZFBST

2) -FBTF PG PÃ¨DF TQBDF 3) -FBTF PG CVJMEJOH GPS OVSTJOH EPSNJUPSZ BOE SFMBUFE services (shall be renewed automatically) 4) Maintenance service fee for medical instruments 5) Rental and maintenance service fee for cars 6) Fee to a bank which is bondholdersâ&#x20AC;&#x2122; representative

1BZBCMF XJUIJO 1 to 5 years More than 5 years

1 year

Total

2013

2012

2013

2012

2013

2012

2013

2012

118

7 57

9 48

4 36

7 95

13 84

30.3 Commitments from other contracts The Company has entered into three equipment utilisation contracts with three local companies. The contracts cover QFSJPE PG ZFBST FYQJSF JO BOE BOE VOEFS UIF DPOEJUJPOT PG UIF DPOUSBDUT UIF $PNQBOZ JT SFRVJSFE UP QVSDIBTF NFEJDBM TVQQMJFT UP VTF XJUI UIF NFEJDBM FRVJQNFOU BU UIF QSJDFT TQFDJÃ&#x2021;FE JO UIF DPOUSBDUT JO UPUBM UISPVHIPVU the period of those contracts. As at 31 December 2013, the Company had completed the medical supplies purchases SFRVJSFE VOEFS UIF DPOUSBDUT UIF PVUTUBOEJOH BNPVOU PG NFEJDBM TVQQMJFT UIBU UIF $PNQBOZ XBT SFRVJSFE UP QVS chase in accordance with the contracts was Baht 2.1 million). 30.4 Uncalled portion of investments in subsidiaries As at 31 December 2013 and 2012, the Company has commitments in respect of the uncalled portion of investments in overseas subsidiaries as below. Companyâ&#x20AC;&#x2122;s name

Country of incorporation

Uncalled portion of investments 2013

2012

"TJB (MPCBM )FBMUI -UE "()

)POH ,POH

),% NJMMJPO

-JGF BOE -POHFWJUZ -UE --(

)POH ,POH

USD 0.1 million

Annual Report 2013

30. COMMITMENTS AND CONTINGENT LIABILITIES 30.1 Capital commitments As at 31 December 2013, the Company has capital commitments to pay a total of Baht 184.6 million (2012: Baht NJMMJPO JO SFMBUJPO UP UIF SFOPWBUJPO BHSFFNFOU PG CVJMEJOH BOE #BIU NJMMJPO #BIU NJMMJPO JO respect of purchase of medical instruments and hospital equipment. 30.2 Operating lease and long-term service commitments 5IF $PNQBOZ IBT FOUFSFE JOUP PQFSBUJOH MFBTF BHSFFNFOUT JO SFTQFDU PG UIF MFBTF PG MBOET CVJMEJOHT PÃ¨DF TQBDF WFIJDMFT BOE FRVJQNFOU BOE MPOH UFSN TFSWJDF BHSFFNFOUT 5IF UFSNT PG UIF BHSFFNFOUT BSF HFOFSBMMZ CFUXFFO BOE ZFBST "T BU %FDFNCFS BOE GVUVSF NJOJNVN QBZNFOUT SFRVJSFE VOEFS UIF BCPWF BHSFFNFOUT XFSF BT GPMMPXT

Bumrungrad Hospital Public Company Limited

30.5 Bank guarantees "T BU %FDFNCFS BOE UIFSF XFSF PVUTUBOEJOH CBOL HVBSBOUFFT PG #BIU NJMMJPO JTTVFE CZ CBOLT PO CFIBMG PG UIF $PNQBOZ "MM XFSF SFRVJSFE JO UIF OPSNBM DPVSTF PG CVTJOFTT F H QBZNFOU PG VUJMJUZ FYQFOTFT BOE TQBDF SFOUBM

31. FINANCIAL INSTRUMENTS 31.1 Financial risk management 5IF (SPVQkT Ã&#x2021;OBODJBM JOTUSVNFOUT BT EFÃ&#x2021;OFE VOEFS 5IBJ "DDPVOUJOH 4UBOEBSE /P l'JOBODJBM *OTUSVNFOUT %JTDMPTVSF BOE 1SFTFOUBUJPOm QSJODJQBMMZ DPNQSJTF DBTI BOE DBTI FRVJWBMFOUT BDDPVOUT SFDFJWBCMF BOE QBZBCMF MPOH UFSN MPBO UP BOE MPOH UFSN MPBO GSPN BOE MPOH UFSN EFCFOUVSFT 5IF Ã&#x2021;OBODJBM SJTLT BTTPDJBUFE XJUI UIFTF Ã&#x2021;OBODJBM JOTUSVNFOUT BOE IPX UIFZ BSF NBOBHFE JT EFTDSJCFE CFMPX

$SFEJU SJTL 5IF (SPVQ JT FYQPTFE UP DSFEJU SJTL QSJNBSJMZ XJUI SFTQFDU UP USBEF BDDPVOUT SFDFJWBCMF BOE PUIFS SFDFJWBCMFT 5IF (SPVQ NBOBHFT UIF SJTL CZ BEPQUJOH BQQSPQSJBUF DSFEJU DPOUSPM QPMJDJFT BOE QSPDFEVSFT BOE UIFSFGPSF EP OPU FYQFDU UP JODVS NBUFSJBM Ã&#x2021;OBODJBM MPTTFT *O BEEJUJPO UIF (SPVQ IBT B MBSHF DVTUPNFS CBTF 5IF NBYJNVN FYQPTVSF UP DSFEJU SJTL JT MJNJUFE UP UIF DBSSZJOH BNPVOUT PG USBEF BDDPVOUT SFDFJWBCMFT BOE PUIFS SFDFJWBCMFT BT TUBUFE JO UIF TUBUFNFOU PG Ã&#x2021;OBODJBM QPTJUJPO

*OUFSFTU SBUF SJTL 5IF (SPVQkT FYQPTVSFT UP JOUFSFTU SBUF SJTL SFMBUF QSJNBSJMZ UP UIFJS JOUFSFTU CFBSJOH DBTI BU CBOLT MPOH UFSN MPBO UP BOE MPOH UFSN MPBO GSPN BOE MPOH UFSN EFCFOUVSFT )PXFWFS TJODF NPTU PG UIF (SPVQkT Ã&#x2021;OBODJBM BTTFUT BOE MJBCJMJUJFT CFBS Ã&#x2C6;PBUJOH JOUFSFTU SBUFT PS Ã&#x2021;YFE JOUFSFTU SBUFT XIJDI BSF DMPTF UP UIF DVSSFOU NBSLFU SBUF UIF JOUFSFTU SBUF SJTL JT FYQFDUFE UP CF NJOJNBM 4JHOJÃ&#x2021;DBOU Ã&#x2021;OBODJBM BTTFUT BOE MJBCJMJUJFT DMBTTJÃ&#x2021;FE CZ UZQF PG JOUFSFTU SBUFT BSF TVNNBSJTFE JO UIF UBCMF CFMPX XJUI UIPTF Ã&#x2021;OBODJBM BTTFUT BOE MJBCJMJUJFT UIBU DBSSZ Ã&#x2021;YFE JOUFSFTU SBUFT GVSUIFS DMBTTJÃ&#x2021;FE CBTFE PO UIF NBUVSJUZ EBUF PS UIF SFQSJDJOH EBUF JG this occurs before the maturity date. (Unit: Million Baht) $POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT "T BU %FDFNCFS 'JYFE JOUFSFTU SBUFT Within 1-5 Over 'MPBUJOH Non-interest Effective 1 year years 5 years interest rate CFBSJOH Total interest rate QFS BOOVN

Financial assets Cash and cash equivalents Trade and other receivables Financial liabilities Trade and other payables Accrued physiciansâ&#x20AC;&#x2122; fees -POH UFSN MPBO GSPN a related party -POH UFSN EFCFOUVSFT

5,269

543

5,857

0.10 - 3.00

1,307

5,269

543

1,352

7,164

859

488

176

2.00

2,485

2,481

4,966

4.13 - 4.97

176

2,485

2,481

1,347

6,489

4FQBSBUF Ă&#x2021;OBODJBM TUBUFNFOUT "T BU %FDFNCFS 'JYFE JOUFSFTU SBUFT Within 1-5 Over 'MPBUJOH Non-interest 1 year years 5 years interest rate CFBSJOH Total Financial assets Cash and cash equivalent Trade and other receivables -POH UFSN MPBO UP B SFMBUFE QBSUZ Financial liabilities Trade and other payables Accrued physiciansâ&#x20AC;&#x2122; fees -POH UFSN MPBO GSPN a related party -POH UFSN EFCFOUVSFT

Effective interest rate QFS BOOVN

5,152

522

5,712

0.10 - 3.00

1,302

5,152

522

1,342

7,016

850

483

176

2.00

2,485

2,481

4,966

4.13 - 4.97

176

2,485

2,481

1,333

6,475

(Unit: Million Baht) $POTPMJEBUFE Ă&#x2021;OBODJBM TUBUFNFOUT "T BU %FDFNCFS 'JYFE JOUFSFTU SBUFT Within 1-5 Over 'MPBUJOH Non-interest Effective 1 year years 5 years interest rate CFBSJOH Total interest rate QFS BOOVN

Financial assets Cash and cash equivalents Trade and other receivables Financial liabilities Trade and other payables Accrued physiciansâ&#x20AC;&#x2122; fees -POH UFSN EFCFOUVSFT

5,816

201

6,034

0.10 - 2.72

1,335

5,816

201

1,352

7,369

800

503

1,489

3,471

4,960

4.13 - 4.97

1,489

3,471

1,303

6,263

Annual Report 2013

(Unit: Million Baht)

Bumrungrad Hospital Public Company Limited

(Unit: Million Baht) 4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT "T BU %FDFNCFS 'JYFE JOUFSFTU SBUFT Within 1-5 Over 'MPBUJOH Non-interest 1 year years 5 years interest rate CFBSJOH Total Financial assets Cash and cash equivalents Trade and other receivables Financial liabilities Trade and other payables Accrued physiciansâ&#x20AC;&#x2122; fees -POH UFSN EFCFOUVSFT

Effective interest rate QFS BOOVN

5,741

183

5,941

0.10 - 2.72

1,333

5,741

183

1,350

7,274

795

498

1,489 1,489

3,471 3,471

1,293

4,960 6,253

4.13 - 4.97

*O BEEJUJPO BT BU %FDFNCFS BOE UIF $PNQBOZkT FYQPTVSFT UP Ã&#x2021;YFE JOUFSFTU SBUF SJTL SFMBUF UP DPOWFSUJCMF CPOET USFBUFE BT FRVJUZ TFDVSJUJFT BNPVOUJOH UP #BIU NJMMJPO XJUI NBUVSJUZ EBUF JO BOE DBSSZ JOUFSFTUT BU UIF SBUFT BOE QFS BOOVN BT EFTDSJCFE JO /PUF UP UIF Ã&#x2021;OBODJBM TUBUFNFOUT

'PSFJHO DVSSFODZ SJTL 5IF $PNQBOZkT FYQPTVSF UP GPSFJHO DVSSFODZ SJTL BSJTFT GSPN JOWFTUNFOU JO TVCTJEJBSJFT UIBU JT EFOPNJOBUFE JO GPSFJHO DVSSFODJFT 5IF $PNQBOZ IBT OP GPSXBSE DPOUSBDUT UP SFEVDF UIF FYQPTVSF TJODF UIF $PNQBOZ FYQFDUT UIF SJTL UP CF NJOJNBM 5IF (SPVQ EPFT OPU VTF GPSFJHO DVSSFODZ GPSXBSE DPOUSBDUT PS QVSDIBTFE DVSSFODZ PQUJPOT GPS USBEJOH QVSQPTFT 5IFSF XBT OP CBMBODF PG Ã&#x2021;OBODJBM BTTFUT BOE MJBCJMJUJFT EFOPNJOBUFE JO GPSFJHO DVSSFODJFT BT BU %FDFNCFS BOE

'BJS WBMVFT PG Ã&#x2021;OBODJBM JOTUSVNFOUT " GBJS WBMVF JT UIF BNPVOU GPS XIJDI BO BTTFU DBO CF FYDIBOHFE PS B MJBCJMJUZ TFUUMFE CFUXFFO LOPXMFEHFBCMF XJMMJOH QBSUJFT JO BO BSNkT MFOHUI USBOTBDUJPO 5IF GBJS WBMVF JT EFUFSNJOFE CZ SFGFSFODF UP UIF NBSLFU QSJDF PG UIF Ã&#x2021;OBODJBM JOTUSVNFOUT PS CZ VTJOH BO BQQSPQSJBUF WBMVBUJPO UFDIOJRVF EFQFOEJOH PO UIF OBUVSF PG UIF JOTUSVNFOU 5IF NFUIPET BOE BTTVNQUJPOT VTFE CZ UIF (SPVQ JO FTUJNBUJOH UIF GBJS WBMVF PG Ã&#x2021;OBODJBM JOTUSVNFOUT BSF BT GPMMPXT B 'PS Ã&#x2021;OBODJBM BTTFUT BOE MJBCJMJUJFT XIJDI IBWF TIPSU UFSN NBUVSJUJFT JODMVEJOH DBTI BOE DBTI FRVJWBMFOUT USBEF BOE PUIFS SFDFJWBCMFT MPOH UFSN MPBO UP BOE MPOH UFSN MPBO GSPN USBEF BOE PUIFS QBZBCMFT BOE BDDSVFE QIZTJDJBOTk GFFT UIF DBSSZJOH BNPVOUT BU UIF TUBUFNFOU PG Ã&#x2021;OBODJBM QPTJUJPO BQQSPYJNBUF GBJS WBMVF C 'PS MPOH UFSN EFCFOUVSFT GBJS WBMVF JT EFSJWFE GSPN RVPUFE NBSLFU QSJDFT PG UIF 5IBJ #POE .BSLFU "TTPDJBUJPO BU UIF DMPTF PG UIF CVTJOFTT PO UIF SFQPSUJOH EBUF

5IF NBKPSJUJFT PG UIF (SPVQkT Ã&#x2021;OBODJBM JOTUSVNFOUT BSF TIPSU UFSN JO OBUVSF PS CFBS Ã&#x2C6;PBUJOH JOUFSFTU SBUFT UIFJS GBJS WBMVF JT OPU FYQFDUFE UP CF NBUFSJBMMZ EJGGFSFOU GSPN UIF BNPVOUT QSFTFOUFE JO TUBUFNFOU PG Ã&#x2021;OBODJBM QPTJUJPO 5IF DBSSZJOH BNPVOU PG MPOH UFSN EFCFOUVSFT XJUI Ã&#x2021;YFE JOUFSFTU SBUFT BT BU %FDFNCFS BNPVOUFE UP #BIU NJMMJPO (2012: Baht 4,960.5 million), their fair value amounted to Baht 4,994.2 million (2012: Baht 5,075.4 million).

32. CAPITAL MANAGEMENT 5IF QSJNBSZ PCKFDUJWF PG UIF (SPVQkT DBQJUBM NBOBHFNFOU JT UP FOTVSF UIBU JU IBT BQQSPQSJBUF DBQJUBM TUSVDUVSF JO PSEFS UP TVQQPSU JUT CVTJOFTT BOE NBYJNJTF TIBSFIPMEFS WBMVF "T BU %FDFNCFS UIF (SPVQkT EFCU UP FRVJUZ SBUJP XBT (2012: 0.88:1) and the Companyâ&#x20AC;&#x2122;s was 0.82:1 (2012: 0.90:1). 33.

EVENTS AFTER THE REPORTING PERIOD 0O +BOVBSZ UIF $PNQBOZ TFU VQ BOE SFHJTUFSFE B OFX TVCTJEJBSZ #VNSVOHSBE 1FSTPOOFM %FWFMPQNFOU $FOUFS $P -UE JODPSQPSBUFE JO 5IBJMBOE XJUI B SFHJTUFSFE TIBSF DBQJUBM PG #BIU NJMMJPO DPNQSJTJOH PG DPNNPO TIBSFT XJUI QBS WBMVF PG #BIU FBDI 5IF $PNQBOZ QBJE GPS B DPNNPO TIBSF PG UIF TVCTJEJBSZ BU PG QBS WBMVF PG #BIU UPUBMJOH #BIU NJMMJPO SFQSFTFOUJOH PG UPUBM JTTVFE BOE QBJE VQ TIBSF DBQJUBM 4VCTFRVFOUMZ PO 'FCSVBSZ UIF $PNQBOZ GVMMZ QBJE GPS UIF VOQBJE BNPVOU PG DPNNPO TIBSFT PG UIF TVCTJEJBSZ UPUBMJOH #BIU NJMMJPO

5IF JOWFTUNFOU XBT NBEF JO BDDPSEBODF XJUI B SFTPMVUJPO PG UIF *OWFTUNFOU $PNNJUUFF .FFUJOH IFME PO %FDFN ber 2013, which approved the Companyâ&#x20AC;&#x2122;s establishment of a new subsidiary to be the Companyâ&#x20AC;&#x2122;s personnel development BOE USBJOJOH DFOUFS GPS IFBMUIDBSF TFSWJDF CVTJOFTT 0O +BOVBSZ UIF $PNQBOZ TFU VQ BOE SFHJTUFSFE B OFX TVCTJEJBSZ 7JUBMMJGF *OUFSOBUJPOBM "( JODPSQPSBUFE JO 4XJU[FSMBOE XJUI B SFHJTUFSFE TIBSF DBQJUBM PG $)' DPNQSJTJOH PG DPNNPO TIBSFT XJUI QBS WBMVF PG $)' FBDI 5IF $PNQBOZ JOWFTUFE JO UIF OFX TVCTJEJBSZ XJUI TIBSFIPMEJOH UISPVHI B XIPMMZ PXOFE TVCTJEJBSZ -JGF BOE -POHFWJUZ -UE 5IF JOWFTUNFOU XBT NBEF JO BDDPSEBODF XJUI B SFTPMVUJPO PG UIF *OWFTUNFOU $PNNJUUFF .FFUJOH IFME PO 4FQUFNCFS XIJDI BQQSPWFE UIF $PNQBOZkT FTUBCMJTINFOU PG B OFX TVCTJEJBSZ UP CF UIF $PNQBOZkT IPMEJOH company for overseas investments. 0O 'FCSVBSZ B NFFUJOH PG UIF $PNQBOZkT #PBSE PG %JSFDUPST QBTTFE B SFTPMVUJPO UP QSPQPTF UP UIF "OOVBM (FOFSBM .FFUJOH PG TIBSFIPMEFST UP CF IFME JO "QSJM UP BEPQU B SFTPMVUJPO UP QBZ B EJWJEFOE PG #BIU QFS TIBSF PS B UPUBM PG #BIU NJMMJPO UP UIF TIBSFIPMEFST JO SFTQFDU PG UIF QSPÃ&#x2021;U 5IF $PNQBOZ BMSFBEZ QBJE BO JOUFSJN EJWJEFOE PG #BIU QFS TIBSF PS B UPUBM PG #BIU NJMMJPO PO 4FQUFNCFS 5IF SFNBJOJOH dividend of Baht 1.20 per share, or a total of Baht 876.1 million will be paid and recorded after it is approved by the "OOVBM (FOFSBM .FFUJOH PG UIF $PNQBOZkT TIBSFIPMEFST

34. RECLASSIFICATIONS 5IF $PNQBOZ SFDMBTTJÃ&#x2021;FE DFSUBJO BNPVOUT JO UIF Ã&#x2021;OBODJBM TUBUFNFOUT GPS UIF ZFBS FOEFE %FDFNCFS UP DPOGPSN UP UIF DVSSFOU ZFBSkT DMBTTJÃ&#x2021;DBUJPO BT GPMMPXJOH

$POTPMJEBUFE Ã&#x2021;OBODJBM TUBUFNFOUT

(Unit: Thousand Baht) 4FQBSBUF Ã&#x2021;OBODJBM TUBUFNFOUT

As previously

"T SFDMBTTJÃ&#x2021;FE

reported

"T SFDMBTTJÃ&#x2021;FE

reported

Cost of hospital operations

8,242,007

8,232,117

8,148,242

8,138,353

"ENJOJTUSBUJWF FYQFOTFT

2,294,947

2,304,837

2,235,465

2,245,354

5IF SFDMBTTJÃ&#x2021;DBUJPO IBE OP FGGFDU UP QSFWJPVTMZ SFQPSUFE QSPÃ&#x2021;U PS TIBSFIPMEFSTk FRVJUZ

35. APPROVAL OF FINANCIAL STATEMENTS 5IFTF Ã&#x2021;OBODJBM TUBUFNFOUT XFSF BVUIPSJTFE GPS JTTVF CZ UIF $PNQBOZkT #PBSE PG %JSFDUPST PO 'FCSVBSZ

Annual Report 2013

Bumrungrad Hospital Public Company Limited

Annual Report 2013

Company and Business Information

Bumrungrad Hospital Public Company Limited

Vision / Mission / Guiding principles Vision : WORLD CLASS MEDICINE WORLD CLASS SERVICE Mission : WE PROVIDE WORLD CLASS HEALTHCARE WITH CARE AND COMPASSION Guiding principles : 1. We strive to exceed our customerâ&#x20AC;&#x2122;s expectations. 2. We are committed to our Medical and Hospital staffâ&#x20AC;&#x2122;s welfare, education, training and development. 3. We continually improve the quality and safety of everything we do. 4. We strive for professional excellence and innovation in all we do. 5. We embrace cultural diversity with Thai hospitality. 6. We strive to make everything we doâ&#x20AC;? World Classâ&#x20AC;?. 7. We are trusted, honest, and ethical in all our dealings. 8. We work as a team and share what we know. 9. We highly value our corporate social responsibilities. 10. We operate in an environmentally responsible manner. GENERAL INFORMATION 1. Company Information Name : Type of Business : )FBE 0Ă¨DF "EESFTT

Registration No. : Home page : E-mail address : Telephone : Fax : Registered Capital : BT PG %FDFNCFS

Issued and Paid up Capital: BT PG %FDFNCFS

Bumrungrad Hospital Public Company Limited Private hospital 4VLIVNWJU 4PJ /BOB /VB 4VLIVNWJU 3PBE Klong Toey Nua, Wattana, Bangkok 10110 0107536000994 http://www.bumrungrad.com ir@bumrungrad.com 0 2667 1000 0 2667 2525 Baht 922,702,685 %JWJEFE JOUP Ordinary shares of 921,211,022 shares, par value Preferred shares of 1,491,663 shares, par value at Baht 730,052,222 %JWJEFE JOUP Ordinary shares of 728,560,559 shares, par value Preferred shares of 1,491,663 shares, par value at

at Baht 1 per share Baht 1 per share at Baht 1 per share Baht 1 per share

Company 1. Vitallife Corporation Limited 210 Sukhumvit Soi 1, Sukhumvit Road, Klong Toey Nua, Wattana, Bangkok 10110 Phone 0 2667 2340, Fax 0 2667 2341 2. Asia Global Research Company Limited 2 Sukhumvit Road, Klong Toey, Klong Toey, Bangkok 10110 Phone 0 2667 1700, Fax 0 2667 1800 3. Asia Global Health Limited Room 337, 3rd Fl. South China C.S. Building, 13-17 Wah Sing Street, Kwai Chung, New Territories, Hong Kong. 1IPOF 'BY 4. Ruenmongkol Company Limited 11/26 Sukhumvit Soi 1, Sukhumvit Road, Klong Toey Nua, Wattana, Bangkok 10110 Phone 0 2667 1000, Fax 0 2667 2525 5. Life and Longevity Limited Room 337, 3rd Fl. South China C.S. Building, 13-17 Wah Sing Street, Kwai Chung, New Territories, Hong Kong. 1IPOF 'BY 6. Bumrungrad International Limited 33 Sukhumvit Soi 3, Sukhumvit Road, Klong Toey Nua, Wattana, Bangkok 10110 Phone 0 2667 1000, Fax 0 2667 2525 7. CDE Trading Company Limited 33 Sukhumvit Soi 3, Sukhumvit Road, Klong Toey Nua, Wattana, Bangkok 10110 Phone 0 2667 1000, Fax 0 2667 2525

Type of Business Wellness Center

Issued and paid up ordinary shares

Shareholding (%)

315,000

100.0%

Clinical Research

5,000,000

100.0%

Investment in healthcare & related business in Asia

1,220,000

100.0%

Owns the land at Sukhumvit Soi 1

34,000,000

100.0%

Holding company for overseas investments

100,000

100.0%

Temporarily Dormant Company

45,938

31.5%

Temporarily Dormant Company

100,000

30.0%

Annual Report 2013

2. Entities in which the Company has more than 10% shareholding

Bumrungrad Hospital Public Company Limited

3. Reference Persons 1. Auditor

2. Legal Consultant 3. Share Registrar

4. Convertible Bonds Registrar

5. Convertible Bondholdersâ&#x20AC;&#x2122; Representative 6. Debentures Registrar

&SOTU :PVOH 0Ã¨DF -JNJUFE SE 'MPPS -BLF 3BKBEB 0Ã¨DF $PNQMFY 193/136-137 New Rajadapisek Road, Bangkok 10110 Phone 0 2264 0777, Fax 0 2264 0789-90 %BNSPOHUIBN -BX 0Ã¨DF 4PJ 4PJ 1SFFEB 4VLIVNWJU 3PBE #BOHLPL Phone 0 2255 2552, Fax 0 2653 1133 Thailand Securities Depository Company Limited 62 The Stock Exchange of Thailand Building, 4th and 6th-7th Floor, Rachadapisek Road, Klong Toey, Bangkok 10110 Phone 0 2229 2888, Fax 0 2359 1259 Bumrungrad Hospital Public Company Limited 4VLIVNWJU 4PJ /BOB /VB 4VLIVNWJU 3PBE ,MPOH 5PFZ /VB Wattana, Bangkok 10110 Phone 0 2667 2025, Fax 0 2667 2031 Thai Military Bank Public Company Limited 3000 Paholyothin Road, Jatujak, Bangkok 10900 Phone 0 2299 1111, 0 2617 9111, Fax 0 2299 1784 Siam Commercial Bank Public Company Limited 9 Rutchadapisek Road, Jatujak, Bangkok 10900 Phone 0 2544 4049, Fax 0 2937 7662

BUSINESS POLICY AND OVERALL OPERATION #VNSVOHSBE )PTQJUBM 1VCMJD $PNQBOZ -JNJUFE UIF l$PNQBOZm PQFSBUFT B QSJWBUF IPTQJUBM CVTJOFTT JO #BOHLPL XJUI UIF DVSSFOU 563 licensed beds and capacity over 5,500 outpatients per day. The Company is one of the leading healthcare providers in Thailand and in the Southeast Asian region, providing complete healthcare services for both outpatients and inpatients. The Company has always emphasized the importance of quality healthcare and experienced physicians and staff. Bumrungrad International Hospital, Bangkok JT UIF Ã&#x2021;STU IPTQJUBM JO "TJB UP SFDFJWF UIF 64 TUBOEBSE BDDSFEJUBUJPO GSPN UIF +PJOU $PNNJTTJPO *OUFSOBUJPOBM +$* 5IF IPTQJUBM IBT BMTP SFDFJWFE +$*kT $MJOJDBM $BSF 1SPHSBN $FSUJÃ&#x2021;DBUJPO $$1$ GPS TQFDJBMUJFT QSPHSBNT JODMVEJOH UIF 1SJNBSZ 4USPLF 1SPHSBN "DVUF .ZPDBSEJBM *OGBSDUJPO %JBCFUFT .FMMJUVT 5ZQF * BOE ** BOE $ISPOJD ,JEOFZ %JTFBTF 4UBHF * UP *7 #FTJEFT UIF $PNQBOZ JT UIF Ã&#x2021;STU IPTQJUBM XIJDI XBT BQQSPWFE CZ 5IBJ )PTQJUBM "DDSFEJUBUJPO )" 5IF $PNQBOZ IBT Ã&#x2021;WF PXOFE TVCTJEJBSJFT JODMVEJOH 7JUBMMJGF $PSQPSBUJPO -JNJUFE "TJB (MPCBM )FBMUI -JNJUFE "TJB (MPCBM 3FTFBSDI $PNQBOZ -JNJUFE 3VFONPOHLPM $PNQBOZ -JNJUFE BOE -JGF BOE -POHFWJUZ -JNJUFE 5IF $PNQBOZ IBT UXP BTTPDJBUFE companies, including 31.5%-owned Bumrungrad International Limited and 30%-owned CDE Trading Company Limited.

Annual Report 2013

Corporate structure (as of 31 December 2013)

Bumrungrad Hospital Public Company Limited (â&#x20AC;&#x153;BHâ&#x20AC;?) Operates Bumrungrad International Hospital, Bangkok 100.0%

100.0%

Vitallife Corporation Ltd. (â&#x20AC;&#x153;Vitallifeâ&#x20AC;?)

Asia Global Research Co., Ltd. (â&#x20AC;&#x153;AGRâ&#x20AC;?)

Ruenmongkol Co., Ltd.

Life and Longevity Ltd.

Comprehensive wellness center specializing in preventive care

Clinical research

Owns the land at Sukhumvit Soi.1

Holding company for overseas invesment

100.0%

(â&#x20AC;&#x153;RMâ&#x20AC;?)

31.5%

(â&#x20AC;&#x153;LLLâ&#x20AC;?)

30.0%

Asia Global Health Ltd. (â&#x20AC;&#x153;AGHâ&#x20AC;?)

Bumrungrad International Ltd. (â&#x20AC;&#x153;BILâ&#x20AC;?)

CDE Trading Co., Ltd. (â&#x20AC;&#x153;CDEâ&#x20AC;?)

Regional healthcare opportunities

Dormant

Remarks - Bumrungrad Personnel Development Center Co., Ltd. has been registered on 6th January 2014 (registered capital Baht 5 million, 100% owned by the Company), being the personnel development and training center for healthcare service business. - Vitallife International AG has been registered on 16th January 2014 (registered capital CHF 100,000, 51% owned by the Companyâ&#x20AC;&#x2122;s subsidiary - Life and Longevity Ltd.), being the holding company for overseas investments.

Vitallife Corporation Limited (â&#x20AC;&#x153;Vitallifeâ&#x20AC;?) is a pioneer in wellness and anti-aging which provides preventive care services targeted at health-conscious individuals. The Vitallife program brings together experienced medical professionals and world-class technologies to provide customers with customized exercise programs, nutrition plans, and food and vitamin supplements for healthy living. Vitallife is also the center in providing anti-aging services for other wellness clinics. Asia Global Health Limited (â&#x20AC;&#x153;AGHâ&#x20AC;?) is a company that supports the strategy for regional investment in healthcare and related business. Asia Global Research Company Limited (â&#x20AC;&#x153;AGRâ&#x20AC;?) is the provider of clinical research, both within Thailand and Southeast Asia. The services JODMVEF DPOUSBDU SFTFBSDI PSHBOJ[BUJPO l$30m XIJDI QFSGPSNT NVMUJDFOUFS DMJOJDBM USJBMT GPS JOUFSOBUJPOBM CJPUFDI QIBSNBDFVUJDBM BOE EFWJDF DPNQBOJFT BOE TJUF NBOBHFNFOU PSHBOJ[BUJPO l4.0m XIJDI NBOBHFT HSPVQT PG JOWFTUJHBUJPOBM TJUFT UP QSPWJEF RVBMJUZ research and quality data. Ruenmongkol Company Limited (â&#x20AC;&#x153;RMâ&#x20AC;?) JT DVSSFOUMZ BO PXOFS PG UIF MBOE BU 4VLIVNWJU 4PJ BQQSPY 3BJ GPS DPOTJTUFODF with the future business expansion. Life and Longevity Limited (â&#x20AC;&#x153;LLLâ&#x20AC;?) registered in Hong Kong Special Administrative Regions of the Peopleâ&#x20AC;&#x2122;s Republic of China, for UIF CFOFĂ&#x2021;U PG PWFSTFBT JOWFTUNFOUT PG UIF $PNQBOZ Bumrungrad International Limited (â&#x20AC;&#x153;BILâ&#x20AC;?) has served as the Companyâ&#x20AC;&#x2122;s international investment arm. BIL has focused on hospital ownership and management. During 2011, BIL divested its last core asset, comprising direct and indirect interests in Asian Hospital, Inc. in the Philippines; and do not renew the BILâ&#x20AC;&#x2122;s contract to operate Mafraq Hospital in Abu Dhabi. In 2013, BIL ceased its operating activity and pursued the distribution of its funds to shareholders via capital reduction. CDE Trading Company Limited (â&#x20AC;&#x153;CDEâ&#x20AC;?) QSFWJPVTMZ (MPCBM $BSF 4PMVUJPOT 5IBJMBOE $PNQBOZ -JNJUFE XBT B TPGUXBSF EFWFMPQNFOU DPNQBOZ GPS IFBMUIDBSF CVTJOFTT *O %FDFNCFS (MPCBM $BSF 4PMVUJPOT 5IBJMBOE $PNQBOZ -JNJUFE DPNQMFUFE UIF TBMF PG JUT DPSF BTTFUT XIJDI XBT UIF IPTQJUBM TPGUXBSF BOE PUIFS BTTFUT UP UIF .JDSPTPGU (SPVQ BOE DIBOHFE JUT OBNF GSPN (MPCBM $BSF 4PMVUJPOT 5IBJMBOE $PNQBOZ -JNJUFE UP $%& 5SBEJOH $PNQBOZ -JNJUFE $%& 5SBEJOH JT DVSSFOUMZ B UFNQPSBSJMZ EPSNBOU DPNQBOZ

Bumrungrad Hospital Public Company Limited

Revenue Structure 6OJU #BIU .JMMJPO

Product line / Business Group Healthcare Healthcare Total Healthcare Rental Rental Total Rental Others Others Others Others Total Others Total

Operated by Bumrungrad Hospital Pcl. Vitallife Corporation Ltd. Bumrungrad Hospital Pcl. Ruenmongkol Bumrungrad Hospital Pcl. Vitallife Corporation Ltd. "TJB (MPCBM 3FTFBSDI -UE Ruenmongkol

% Shareholding by Company

2013

2012

2011

Revenue

14,008

95.6

12,662

90.2

10,850

96.0

243

1.7

194

1.4

165

1.5

14,251

97.3

12,856

91.6

11,015

97.5

0.6

125

0.9

121

1.0

0.6

126

0.9

121

1.0

280

1.9

1,048

7.5

161

1.4

100.0

0.1

100.0

0.1

100.0

305

2.1

1,059

7.5

170

1.5

14,651

100

14,041

100

11,306

100

100.0

The Hospitalâ&#x20AC;&#x2122;s Services: The services of Bumrungrad International Hospital, Bangkok can be detailed as follows: 1. Outpatient service has 37 clinics center with 275 examination rooms, and capacity to serve over 5,500 outpatients per day, with the following details: n "MMFSHZ $FOUFS n *NBHJOH $FOUFS n "WJBUJPO .FEJDJOF $FOUFS n +PJOU 3FQMBDFNFOU $FOUFS n #FIBWJPSBM )FBMUI $FOUFS n .FO $FOUFS n #SFBTU 4DSFFOJOH $FOUFS n /FVSPMPHZ $FOUFS n $IJMESFOkT $FOUFS n 0SUIPQFEJD $FOUFS n %FOUBM $FOUFS n 1BUIPMPHZ $FOUFS n %JBCFUFT $FOUFS n 1IZTJPUIFSBQZ $FOUFS n %JBMZTJT $FOUFS n 1MBTUJD 4VSHFSZ $FOUFS n %JHFTUJWF %JTFBTF $FOUFS n 1VMNPOBSZ $FOUFS n &BSMZ *OUFSWFOUJPO $FOUFS n 3BEJPMPHZ $FOUFS n &NFSHFODZ $FOUFS n 3FIBCJMJUBUJPO $FOUFS n &OEPTDPQJD $FOUFS n 4LJO $FOUFS n &/5 $FOUFS n 4LJO -BTFS $FOUFS n &ZF $FOUFS n 4MFFQ %JTPSEFST $FOUFS n 'FSUJMJUZ $FOUFS n 4QJOF *OTUJUVUF n )FBMUI 4DSFFOJOH $FOUFS n 6SPMPHZ $FOUFS n )FBSU $FOUFS n 7JUBMMJGF 8FMMOFTT $FOUFS n )PSJ[PO 3FHJPOBM $BODFS $FOUFS n 8PNFO $FOUFS n )ZQFSUFOTJPO 4USPLF 1SPHSBN

2. Licensed capacity for inpatient service totals 563 beds, of which including ward beds and intensive care beds. As at 31 December 2013, the hospital has 543 beds in operation. In 2013, the Company treated a total of over 1.1 million medical episodes. The revenue contributions by inpatient and outpatient in 2013 are as follows:

Annual Report 2013

Inpatient vs. Outpatient (% of total revenue) 100% 80%

51%

50%

51%

52%

49%

50%

49%

48%

60% 40%

20%

Outpatient

Inpatient 2009

2010

2011

2012

2013

International Patient Services: The Company has a strong and successful track record in increasing its presence in the international market. It has an International Patient Services Center to facilitate and accommodate international patients. The services offered include interpreters, international insurance coordination and international medical coordinators, referral center, email correspondence, visa extension counter, embassy BTTJTUBODF BJSQPSU SFDFQUJPO BOE USBWFM BTTJTUBODF 5IF $PNQBOZ BMTP IBT PWFSTFBT SFGFSSBM PĂ¨DFT JO DPVOUSJFT In 2013, Bumrungrad International Hospital treated over 520,000 international medical episodes from over 200 countries. 5IF UPQ UISFF IJHIFTU SFWFOVF DPOUSJCVUPST CZ DPVOUSZ BSF UIF 6OJUFE "SBC &NJSBUFT .ZBONBS BOE 0NBO 5IF GPMMPXJOH HSBQI TIPXT UIF IJTUPSJDBM SFWFOVF DPOUSJCVUJPO PG JOUFSOBUJPOBM QBUJFOUT PWFS UIF QBTU Ă&#x2021;WF ZFBST Thai vs. international patients (% of total revenue) 100% 80%

45%

43%

41%

39%

55%

57%

59%

61%

60% 40% 20% 0%

Thai International 2009

2010

2011

2012

2013

* Note: International patients are by nationality and include both expatriates and medical tourists.

The Bangkok Facility: At present, the hospitalâ&#x20AC;&#x2122;s services are offered in three buildings: 1. Bumrungrad International Clinic Building JT B TUPSFZ PVUQBUJFOU GBDJMJUZ XJUI UIF Ă&#x2021;STU UFO Ă&#x2C6;PPST CFJOH VTFE BT QBSLJOH TQBDFT BOE UIF UPQ Ă&#x2C6;PPST BT PVUQBUJFOU DMJOJDT BOE BODJMMBSZ TFSWJDFT UPHFUIFS XJUI OPO DMJOJD Ă&#x2C6;PPST GPS QBUJFOU TFSWJDFT SFTUBVSBOU conference and educational facilities. 2. Bumrungrad International Hospital Building offers a combination of inpatient and outpatient services. The licensed inpatient CFE DBQBDJUZ PG UIF #VNSVOHSBE *OUFSOBUJPOBM )PTQJUBM #VJMEJOH JT 5IF $PNQBOZ QMBOT UP SFOPWBUF CBDL PĂ¨DF TQBDF JOUP BEEJUJPOBM *$6 CFET JO UP TFSWF BEEJUJPOBM EFNBOE GSPN PVS QBUJFOUT 3. BH Residence Building PGGFST TQBDF PO UIF #BOHLPL DBNQVT GPS TVQQPSU GVODUJPOT BOE Ă&#x2C6;PPST PG QBSLJOH TQBDFT

Bumrungrad Hospital Public Company Limited

Industry and Competition In Thailand, the private hospital sector has evolved from small family businesses into large corporations with professional management. Many are now regularly reviewed by domestic or international accreditation organizations, resulting in improved medical quality, safety, management discipline and operating processes. These hospitals encourage and attract an increasing pool of highly skilled medical practitioners. Business opportunities and competition expand. In 2013, sector growth continued to be driven by external demand drivers and the hospitalsâ&#x20AC;&#x2122; business strategies. Economic and consumer income growth, together with an aging population, encouraged spending on both necessary and discretionary healthcare. Healthcare providers continued to aggressively market their services. Thailandâ&#x20AC;&#x2122;s popularity as both a tourist and medical destination provided more patients. Preventative and wellness services opened market segments beyond the sick and frail. Expanded networks reached more suburban and provincial consumers, and gave the biggest providers increased economies of scale and bargaining power. Bangkok continues to host the most private hospitals. It has seen not only renovations, expansions, and new campuses in the private sector, but also public hospital developments targeting premium private hospital market segments. Thais and international patients seeking high quality treatment in modern facilities for serious conditions have more options than ever. The Company positions itself at the premium end of the domestic market. For a family in the higher socioeconomic strata seeking the best available treatment â&#x20AC;&#x201C; often for a serious medical condition â&#x20AC;&#x201C; Bumrungrad offers excellent doctors supported by experienced colleagues, advanced technology and responsive service, in a comforting environment. It uses a wide variety of tools, JODMVEJOH NBTT NFEJB FWFOUT UIF JOUFSOFU BOE POTJUF DPNNVOJDBUJPOT UP DPOWFZ UIFTF CFOFĂ&#x2021;UT The global medical tourism industry is expected to see continued growth, and Thailand has been one of the top destinations. Demand continues to be driven by two groups: aging populations in developed countries with dysfunctional, expensive healthcare TZTUFNT BOE VQXBSEMZ NPCJMF DPOTVNFST JO FNFSHJOH FDPOPNJFT XIFSF IFBMUIDBSF SFTPVSDFT BSF OPU TVĂ¨DJFOUMZ USBJOFE PS transparent. These factors will continue to drive patients across borders in search of care. However, they may not have to travel as far. Thailandâ&#x20AC;&#x2122;s strongest competitors were once Singapore and India; today they include Malaysia, Korea, Turkey and Latin America. As more countries develop medical tourism strategies and more hospitals get international accreditation, medical tourism will become more segmented and regional. The Company believes it can compete successfully across a wide variety of medical TQFDJBMUJFT CVU JUT LFZ QBUJFOU TPVSDFT XJMM CF XJUIJO B IBMG EBZkT Ă&#x2C6;JHIU Worldwide competition is growing but hospitals in Thailand have a competitive advantage. Thailand offers a unique combination of high quality doctors, an appealing service culture, affordability and long experience serving international patients. The country is also B QPQVMBS UPVSJTU EFTUJOBUJPO XJUI B HPPE TVQQPSUJOH JOGSBTUSVDUVSF 5IF $PNQBOZ CFOFĂ&#x2021;UT GSPN BMM UIFTF DIBSBDUFSJTUJDT QMVT B large, centrally-located campus that provides rapid access to resources that meet virtually all the needs of a typical medical tourist. *OUFSOBUJPOBM QBUJFOUT USBWFM GPS NFEJDBM FYQFSUJTF UIFZ DBOOPU Ă&#x2021;OE BU IPNF TP UIF $PNQBOZ JOUSPEVDFT NBOZ PG JUT UPQ EPDUPST BU FWFOUT JO LFZ TPVSDF NBSLFUT " OFUXPSL PG PWFSTFBT SFGFSSBM PĂ¨DFT IFMQT SBJTF BXBSFOFTT PG UIF IPTQJUBM answer questions and coordinate patient visits. The Company also seeks to differentiate itself with more transparent pricing and BO FYQFSJFODFE UFBN PG NVMUJDVMUVSBM NFEJDBM DPPSEJOBUPST BOE JOUFSQSFUFST v Target Markets The domestic market can be divided into two types, upper-middle to premium class Thais and the expatriate community in Thailand. 5IF JOUFSOBUJPOBM NBSLFU SFĂ&#x2C6;FDUT QSJNBSJMZ NFEJDBM UPVSJTN GSPN DPVOUSJFT XIFSF UIFSF BSF JTTVFT XJUI RVBMJUZ BDDFTT BOE affordability with their healthcare services. In addition, the Company also targets patients from corporate contracts, insurance companies and referral patients both within Thailand and from abroad. Distribution and Marketing Channels An effective way to attract customers is by way of obtaining patient referrals, both within Thailand and from other countries. With Bumrungrad International Hospital, Bangkok as a reputable tertiary hospital of 30 years, specializing in the treatments of complicated diseases, the Company has established excellent referral connections with hospitals and doctors both within Thailand and abroad. The hospital maintains over one thousand corporate and insurance contracts as a method for directing patients to the hospital. 'PS JUT JOUFSOBUJPOBM NBSLFUJOH UIF $PNQBOZ IBT TFU VQ SFGFSSBM PĂ¨DFT JO DPVOUSJFT

Inpatients

As at 31 December 2013

2012

2011

Total number of licensed beds*

563 538 538 543 487 484 Beds in operation* 179,458 178,242 176,660 Weighted average total capacity** 134,908 138,580 127,817 0DDVQJFE CFET QFS ZFBS CFET

75.18 77.75 72.35 8FJHIUFE BWFSBHF DBQBDJUZ VUJMJ[BUJPO QFSDFOU

* In December 2013, the Company has increased the licensed beds to 563 and operational beds to 543 ** Weighted average total capacity is calculated by multiplying the number of beds in operation with the number of days of service

As at 31 December Outpatients $BQBDJUZ QFS EBZ QFSTPOT "WFSBHF PVUQBUJFOUT QFS EBZ QFSTPOT

8FJHIUFE BWFSBHF DBQBDJUZ VUJMJ[BUJPO QFSDFOU

2013

5,500 3,021 59.43 4 additional 0PD Ă&#x2C6;oors have been opened at BI Clinic Building on May 23, 2013

2012

2011

4,500 3,017 67.04

4,500 2,801 62.24

Raw Materials and Suppliersv Primary raw materials of the hospital business are pharmaceuticals, medical supplies and medical equipment. 3BX NBUFSJBMT TVQQMJFST JODMVEF CPUI MPDBM DPNQBOJFT BOE JOUFSOBUJPOBM EJTUSJCVUPST XJUI PĂ¨DFT JO 5IBJMBOE 8JUI B OFUXPSL PG PWFS TVQQMJFST UIF $PNQBOZ JT BCMF UP TPVSDF SBX NBUFSJBMT XJUIPVU EJTSVQUJPO *O BEEJUJPO UIF $PNQBOZ VTFT BO FĂ¨DJFOU purchasing and inventory control system to evaluate pricing, effectiveness and quality of raw materials. Environmental Compliance 5IF $PNQBOZ JT Ă&#x2021;SNMZ DPNNJUUFE UP FOWJSPONFOUBM QSPUFDUJPO BOE DPOTFSWBUJPO PG FOFSHZ BOE OBUVSBM SFTPVSDFT 5IF Company has established an environmental policy to communicate to employees its views on environmental preservation and encourages employees to actively support environmental protection. 5IF $PNQBOZ JT DPNNJUUFE UP NJOJNJ[JOH JUT FOWJSPONFOUBM JNQBDU PO OFJHICPSJOH DPNNVOJUJFT BOE UP FĂ¨DJFOU VTF PG natural resources through energy conservation and materials recycling programs. All employees and contractors of the Company are expected to follow the governmentâ&#x20AC;&#x2122;s environmental regulations and the Companyâ&#x20AC;&#x2122;s environmental policies.

RIS, FACTORSv Political, macroeconomic and natural disaster-related factors In recent years, the hospital industry in Thailand has been affected by a number of external factors, including global and EPNFTUJD FDPOPNJD EPXOUVSOT QPMJUJDBM VOSFTU Ă&#x2C6;V QBOEFNJDT BOE XFBUIFS SFMBUFE FWFOUT *O 5IBJMBOEkT FDPOPNJD HSPXUI was supported by government stimulus programs and domestic consumption. For 2014, slow growth in export-focused industries, reduced levels of government spending and private investment, and ongoing political unrest are expected to have an adverse impact on Thailandâ&#x20AC;&#x2122;s economy and its tourism sector, including the medical tourism market. In order to minimize risk, the Company maintains a balanced portfolio of international and Thai patients so that BH does not rely excessively on revenue from international patients. The Company continues to focus on marketing activities related to the domestic market while continuing to work to attract international patients. IntensiĂ&#x2021;ed competition in the premium healthcare sector As private hospitals in Thailand and across the region continue to develop, competition in the private healthcare sector continues to intensify the risk of losing clients to competitors. In order to maintain its leading position in Thailand and Asia and to mitigate this risk, the Company has focused on continuing UP SFDSVJU EPDUPST PG UIF IJHIFTU DBMJCFS FTQFDJBMMZ TVC TQFDJBMUZ FYQFSUT JOWFTUFE JO VQ UP EBUF FRVJQNFOU BOE JOGPSNBUJPO technology, upgraded and expanded both inpatient and outpatient facilities as well as continuously improved its quality of care. 5IF $PNQBOZkT IPTQJUBM XBT UIF Ă&#x2021;STU IPTQJUBM JO "TJB UP SFDFJWF 64 TUBOEBSE BDDSFEJUBUJPO GSPN +PJOU $PNNJTTJPO *OUFSOBUJPOBM "DDSFEJUBUJPO +$*"

Annual Report 2013

Sources of Products and Services Capacity

Bumrungrad Hospital Public Company Limited

5IF IPTQJUBM IBT BMTP SFDFJWFE +$*kT $MJOJDBM $BSF 1SPHSBN $FSUJĂ&#x2021;DBUJPO $$1$ GPS TQFDJBMUZ QSPHSBNT JODMVEJOH UIF 1SJNBSZ Stroke Program, Acute Myocardial Infarction, Diabetes Mellitus Types I and II, and Chronic Kidney Disease Stages I to IV. The IPTQJUBM XBT BMTP UIF Ă&#x2021;STU QSJWBUF IPTQJUBM JO 5IBJMBOE UP SFDFJWF 5IBJ )PTQJUBM "DDSFEJUBUJPO )" BOE UIF Ă&#x2021;STU UP CF BXBSEFE l5IBJMBOEk Quality Classâ&#x20AC;? from the Thailand Productivity Institute. In addition, BH has a strong client base of referral patients both from within Thailand and internationally. Shortage of professional staff 5IF IPTQJUBM CVTJOFTT SFRVJSFT QFSTPOOFM JODMVEJOH OVSTFT QIBSNBDJTUT BOE WBSJPVT UFDIOJDJBOT XJUI TQFDJĂ&#x2021;D UFDIOJDBM FYQFSUJTF and knowledge. A shortage of these professionals is due in part to increasing demand from both the private and public sectors. (JWFO UIF JNQPSUBODF PG JUT JOUFSOBUJPOBM DMJFOU CBTF UIF $PNQBOZ BMTP SFRVJSFT NVMUJ MJOHVBM QSPGFTTJPOBMT vv *O PSEFS UP NJOJNJ[F SJTL UIF $PNQBOZ PGGFST DPNQFUJUJWF DPNQFOTBUJPO BOE CFOFĂ&#x2021;UT GPS JUT TUBGG #) BMTP QSPWJEFT FEVDBUJPO and training, recreation, staff engagement projects, scholarships and staff welfare activities to all staff members. Through a decentralized management structure, the Company also offers excellent career paths to various categories of staff. In 2013, BH received the l#FTU 1SBDUJDF 8PSLQMBDF "XBSE PO -BCPS 3FMBUJPOT BOE -BCPS 8FMGBSF "XBSE m GSPN 5IBJMBOEkT .JOJTUSZ PG -BCPS GPS UIF Ă&#x2021;GUI DPOTFDVUJWF ZFBS Legal disputes The hospital business is subject to litigation risk related to the provision of healthcare services by hospital staff and physicians. To minimize litigation risk, BH has implemented a healthcare risk management system to ensure that the risk of mistakes by BH personnel is minimized and corrected. In addition, BH has various insurance policies in force against potential litigation.

THE COMPANYâ&#x20AC;&#x2122;S MAJOR SHAREHOLDERS Major Shareholders List of the Companyâ&#x20AC;&#x2122;s 10 major shareholders as at 27 December 2013 is as follows: Shareholder 1. Bangkok Dusit Medical Services PCL. 2. Bangkok Insurance PCL. 3. Sinsuptawee Asset Management Co., Ltd. 60# ,": )*"/ )0/( ,0/( -*.*5&% $MJFOU "DDPVOU 5. BNP Paribas Securities Services Luxembourg 6. Wattanasophonpanich Co., Ltd. 7. Thai NVDR Co., Ltd 4PDJBM 4FDVSJUZ 0Ă¨DF )4#$ 4JOHBQPSF /PNJOFFT 1UF -UE 10. State Street Bank and Trust Company. Total

Number of shares*

Shareholding** (%)

174,350,200 106,760,417 63,258,514 61,199,265 25,804,560 25,121,875 20,274,116 14,958,400 14,400,658 14,305,225

23.88 14.62 8.66 8.38 3.53 3.44 2.78 2.05 1.97 1.96

520,433,230

71.29

* Number of shares includes preferred shares. ** The calculation of holding percentage includes preferred shares.

5IF $PNQBOZ IBT TIBSFIPMEFST JO UIF UPQ UFO NBKPS TIBSFIPMEFST MJTU XIP BSF GPSFJHO Ă&#x2021;OBODJBM JOTUJUVUJPOT PS DVTUPEJBOT BDUJOH as trust companies or nominee accounts. The Company has no knowledge of the ultimate shareholders of these companies as these shareholders have never nominated their representatives to serve on the Board of Directors nor taken part in the management of the Company.

Dividend Policy The Companyâ&#x20AC;&#x2122;s dividend policy is as follows: 8IFO UIF $PNQBOZ IBT OFU QSPĂ&#x2021;U XIJDI DBO CF EJTUSJCVUFE UP TIBSFIPMEFST UIF QSFGFSSFE TIBSFIPMEFST XJMM SFDFJWF EJWJEFOET before the ordinary shareholders. In any year that dividends distributed to the preferred shareholders reach 15% of the capital SFQSFTFOUFE CZ UIF QSFGFSSFE TIBSFT UIF CBMBODF PG UIF QSPĂ&#x2021;U TIBMM CF EJTUSJCVUFE UP UIF PSEJOBSZ TIBSFIPMEFST BU BOZ BNPVOU BT determined by the shareholdersâ&#x20AC;&#x2122; meeting. - In any year that the Company is able to distribute dividends of more than 15% of its capital, the shareholders of both types shall receive the dividends equally.

Subsidiariesâ&#x20AC;&#x2122; dividend policy is as follows: 8IFO UIF DPNQBOZ IBT QSPĂ&#x2021;U XIJDI DBO CF EJTUSJCVUFE UP TIBSFIPMEFST UIF DPNQBOZ JT FMJHJCMF UP QBZ EJWJEFOET UP JUT shareholders at any amount in accordance with the resolution of shareholdersâ&#x20AC;&#x2122; meeting. - Accrued dividends are not entitled to any interest payment.

On 19 February 2014, the Board of Directors approved, subject to shareholdersâ&#x20AC;&#x2122; approval in shareholdersâ&#x20AC;&#x2122; meeting to be held on 29 April 2014, a dividend payment for the year 2013 to preferred and ordinary shareholders at the rate of Baht 1.90 per share, totaling Baht 1,387.10 million, which is a 55% pay-out ratio. The Company already paid an interim dividend of Baht 0.70 per share, totaling Baht 511.04 million, on 5 September 2013. The remaining dividend payment of Baht 1.20 per share, amounting to Baht 876.06 million will be paid on 28 May 2014, after the shareholdersâ&#x20AC;&#x2122; approval. For the year 2012, the Company paid dividend of Baht 1.80 per share, totaling Baht 1,314.09 million, or 49.3% pay-out ratio. MANAGEMENT STRUCTURE 5IF $PNQBOZ IBT Ă&#x2021;WF TFUT PG DPNNJUUFFT XIJDI BSF UIF $PNQBOZkT #PBSE PG %JSFDUPST UIF "VEJU $PNNJUUFF UIF /PNJOBUJPO BOE 3FNVOFSBUJPO $PNNJUUFF UIF (PWFSOJOH #PBSE PG #VNSVOHSBE *OUFSOBUJPOBM )PTQJUBM #BOHLPL BOE UIF *OWFTUNFOU $PNNJUUFF Details of each committee are as follows: Board of Directors Name 1. 2.

Mr. Chai Soponpanich Dr. Chanvit Tanphiphat, MD

3. 4. 5.

Mrs. Linda Lisahapanya Dr. Dhanit Dheandhanoo, MD Mr. Chong Toh

6. 7. 8. 9. 10. 11.

Dr. Sinn Anuras, MD Dr. Suvarn Valaisathien .T 4PQIBWBEFF 6UUBNPCPM Mr. Soradis Vinyaratn Mr. Prin Chirathivat Mrs. Aruni Kettratad

Position Chairperson Vice Chairperson, Member of the Nomination and Remuneration Committee Director, Managing Director Director, Chairperson of the Medical Board Director, Member of the Nomination and Remuneration Committee %JSFDUPS (SPVQ .FEJDBM %JSFDUPS Director Independent Director, Chairperson of the Audit Committee Independent Director, Member of the Audit Committee Independent Director, Member of the Audit Committee Independent Director, Chairperson of the Nomination and Remuneration Committee

Board of Directors Meeting Number of Number of Meetings Attendance 5 5

5 4

5 5 5

4 5 4

5 5 5 5 5 5

4 5 5 4 5 5

Mr. Banphot Kittikinglert, Company Secretary, is the secretary of the Board of Directors.

Legal Binding of the Company "OZ UXP BVUIPSJ[FE EJSFDUPST FYDFQU .S $IPOH 5PI KPJOUMZ TJHO BOE BĂ¨Y UIF $PNQBOZkT TFBM

Term of Directors "U BOOVBM HFOFSBM NFFUJOH PG TIBSFIPMEFST POF UIJSE PG UIF EJSFDUPST TIBMM SFUJSF GSPN PĂ¨DF *G UIF OVNCFS PG EJSFDUPST JT OPU B NVMUJQMF PG UISFF UIFO UIF OVNCFS OFBSFTU UP POF UIJSE TIBMM SFUJSF GSPN PĂ¨DF 3FUJSJOH EJSFDUPST TIBMM CF UIPTF XIP IBWF TFSWFE MPOHFTU JO PĂ¨DF 5IPTF XIP SFUJSF CZ SPUBUJPO BSF FMJHJCMF GPS SF FMFDUJPO

Annual Report 2013

- For the payment of dividends, the Board of Directors is to follow the resolution of the shareholdersâ&#x20AC;&#x2122; meeting. 'PS FWFSZ EJWJEFOE QBZNFOU UIF $PNQBOZ TIBMM SFTFSWF BU MFBTU PG UIF QSPĂ&#x2021;U BT BQQSPQSJBUFE TUBUVUPSZ SFTFSWF VOUJM the reserve accounts for 10% of the Companyâ&#x20AC;&#x2122;s capital. - Accrued dividends are not entitled to any interest payment.

Bumrungrad Hospital Public Company Limited

Duties and Responsibilities of the Board of Directors The duties and responsibilities of the Board of Directors, which are described in the Board of Directorsâ&#x20AC;&#x2122; Charter, are as follows: 1. To perform duties in accordance with the laws, the Companyâ&#x20AC;&#x2122;s objectives and regulations, and resolutions of the shareholdersâ&#x20AC;&#x2122; meeting, in good faith and with care for the best interest of the Company. 2. To establish the Companyâ&#x20AC;&#x2122;s vision, directions and strategies, with the aim to maximize long-term shareholdersâ&#x20AC;&#x2122; value. 5P FOEPSTF NBKPS TUSBUFHJFT BOE QPMJDJFT JODMVEJOH PCKFDUJWFT CVTJOFTT QMBOT Ă&#x2021;OBODJBM UBSHFUT PQFSBUJOH QMBOT BOE DBQJUBM expenditure budgets, as proposed by management; and to monitor and ensure the implementation and follow up on the outcome. 5P FTUBCMJTI UIF $PSQPSBUF (PWFSOBODF .BOVBM BOE UIF $PNQBOZkT $PEF PG &UIJDT BOE UP NPOJUPS BOE FOTVSF DPNNVOJDBUJPO and implementation of such policies and guidelines, to approve amendments as appropriate and to report in the annual report. 5P FOTVSF QSPQFS TZTUFNT GPS DPSQPSBUF BDDPVOUJOH Ă&#x2021;OBODJBM SFQPSUJOH BOE Ă&#x2021;OBODJBM BVEJUJOH UP FOTVSF UIBU UIF $PNQBOZ has an effective internal control, internal audit and risk management system, which should be reviewed annually, and to assign the internal audit department to independently audit and report on the system. 5P BQQSPWF RVBSUFSMZ BOE BOOVBM Ă&#x2021;OBODJBM SFQPSUT UP FOTVSF UIBU UIFZ BSF DPSSFDU BDDVSBUF DSFEJCMF JO DPNQMJBODF XJUI generally accepted accounting standards and report to shareholders in the annual report. 7. To monitor, supervise and approve, as the case may be, and to ensure transparency in the transactions which are connected USBOTBDUJPOT BOE NBZ DBVTF DPOĂ&#x2C6;JDU PG JOUFSFTU BOE UP TFU DMFBS HVJEFMJOFT PO UIF BQQSPWBM BOE EJTDMPTVSF QSPDFTT PG USBOTBDUJPOT XJUI DPOĂ&#x2C6;JDU PG JOUFSFTU 8. To set and appoint committees as appropriate to help pursue, study in detail, monitor and oversee matters of importance as assigned, and to approve their charters which include their duties and responsibilities and determine their remuneration. Audit Committee The Companyâ&#x20AC;&#x2122;s Audit Committee as at 31 December 2013 comprises the following: .T 4PQIBWBEFF 6UUBNPCPM $IBJSQFSTPO PG UIF "VEJU $PNNJUUFF 2. Mr. Soradis Vinyaratn Member of the Audit Committee 3. Mr. Prin Chirathivat Member of the Audit Committee Ms. Pacchanya Chutimawong: Manager of Corporate Internal Audit, is the secretary of the Audit Committee. 5IF $PNQBOZkT "VEJU $PNNJUUFF IBWF UIF FYQFSJFODF BOE LOPXMFEHF PG UIF $PNQBOZkT Ă&#x2021;OBODJBM NBUUFST BOE .T 4PQIBWBEFF 6UUBNPCPM JT UIF $IBJSNBO PG UIF "VEJU $PNNJUUFF NFNCFS XIP IBT UIF LOPXMFEHF BOE FYQFSJFODF JO SFWJFXJOH UIF $PNQBOZkT Ă&#x2021;OBODJBM TUBUFNFOUT Term of the Audit Committee The term of service of Audit Committee is 3 years. In case that an Audit Committee member vacates his position before the expiration of his term of service, the Board of Directors shall select a replacement as soon as possible. The replacement will serve only up to the remaining term of the Audit Committee.

Authorities, Duties and Responsibilities of the Audit Committee 5IF BVUIPSJUJFT PG UIF "VEJU $PNNJUUFF UP GVMĂ&#x2021;M JUT EVUJFT BOE SFTQPOTJCJMJUJFT BT GPMMPXT 1. To engage independent advisers as necessary to carry out its duties to seek independent opinion from any professional counsel when it is deemed necessary at the expense of the Company 2. To have unrestricted access to management, employees and relevant information 3. To conduct special investigations where required 4. To establish procedures in dealing with concerns of employees regarding accounting, internal controls or auditing matters 5P FTUBCMJTI QSPDFEVSFT GPS SFDFJWJOH LFFQJOH BOE NBOBHJOH DPNQMBJOUT SFDFJWFE CZ UIF $PNQBOZ SFHBSEJOH Ă&#x2021;OBODF internal controls or auditing matters 6. To have direct responsibilities on consideration of the remuneration and the selection and nomination of the independent auditor 7. To approve fees and terms and conditions of audit-related work and to review the provision of non-audit services by the FYUFSOBM BVEJUPS BOE XIFO SFRVJSFE UIF GSBNFXPSL GPS QSF BQQSPWBM PG TVDI TFSWJDFT 5P BQQSPWF FYQFOTFT JODVSSFE UP GVMĂ&#x2021;M "VEJU $PNNJUUFFkT EVUJFT 9. To promote and support the organizational independence of the internal audit activity by: i. Approving the internal audit charter ii. Approving the risk based internal audit plan iii. Approving the internal audit budget and resource plan iv. Receiving communications from head of corporate internal audit on the internal audit activityâ&#x20AC;&#x2122;s performance relative to the plan and other matters, including private meetings with head of corporate internal audit without management QSFTFOU BT XFMM BT BOOVBM DPOĂ&#x2021;SNBUJPO PG UIF JOUFSOBM BVEJU BDUJWJUZkT PSHBOJ[BUJPOBM JOEFQFOEFODF v. Approving all decisions regarding the performance evaluation, appointment and removal of head of corporate internal audit

The 2. 3. 4.

9. 10. 11. 12.

duties and responsibilities of the Audit Committee, as described in the Audit Committeeâ&#x20AC;&#x2122;s Charter, are as follows: 5P SFWJFX UIF Ă&#x2021;OBODJBM SFQPSUT PG UIF $PNQBOZ UP FOTVSF BDDVSBDZ BOE TVĂ¨DJFODZ To review the Companyâ&#x20AC;&#x2122;s internal control system, internal audit systems, and risk management system to ensure appropriateness BOE FĂ¨DJFODZ UP DPOTJEFS UIF JOEFQFOEFODF PG UIF JOUFSOBM BVEJU GVODUJPO JODMVEJOH HJWJOH DPOTFOU UP UIF BQQPJOUNFOU SPUBUJPO or termination of Head of internal audit unit or another function responsible for internal auditing. To review the Companyâ&#x20AC;&#x2122;s compliance with the laws governing securities and exchange, including rules and regulations prescribed by the Stock Exchange of Thailand and other laws related to the conduct of the Companyâ&#x20AC;&#x2122;s business. To consider, select and propose the appointment of an independent party as the Companyâ&#x20AC;&#x2122;s external auditor, to propose the audit fees, and to meet with the external auditor without the presence of management at least once a year. 5P DPOTJEFS SFMBUFE QBSUZ USBOTBDUJPOT PS USBOTBDUJPOT XIJDI NBZ IBWF DPOĂ&#x2C6;JDU PG JOUFSFTU UP CF JO BDDPSEBODF XJUI UIF 4UPDL &YDIBOHF PG 5IBJMBOE SVMFT BOE SFHVMBUJPOT UP FOTVSF UIBU TVDI USBOTBDUJPOT BSF SFBTPOBCMF BOE BSF GPS UIF CFTU CFOFĂ&#x2021;UT PG UIF $PNQBOZ To prepare the report of the Audit Committee to be disclosed in the Companyâ&#x20AC;&#x2122;s annual report. The report must be signed by the Chairperson of the Audit Committee and must contain at least the following details: 0QJOJPO PO UIF BDDVSBDZ TVĂ¨DJFODZ BOE DSFEJCJMJUZ PG UIF $PNQBOZkT Ă&#x2021;OBODJBM TUBUFNFOUT 0QJOJPO PO UIF TVĂ¨DJFODZ PG UIF $PNQBOZkT JOUFSOBM DPOUSPM TZTUFN 0QJOJPO PO UIF $PNQBOZkT DPNQMJBODF XJUI UIF MBXT HPWFSOJOH TFDVSJUJFT BOE FYDIBOHF BOE SVMFT BOE SFHVMBUJPOT prescribed by the Stock Exchange of Thailand and other laws related to the conduct of the Companyâ&#x20AC;&#x2122;s business. 0QJOJPO PO UIF BQQSPQSJBUFOFTT PG UIF FYUFSOBM BVEJUPS 0QJOJPO PO USBOTBDUJPOT XIJDI NBZ IBWF DPOĂ&#x2C6;JDU PG JOUFSFTU /VNCFS PG UIF "VEJU $PNNJUUFF .FFUJOHT BOE UIF BUUFOEBODF PG FBDI $PNNJUUFF NFNCFS 0QJOJPO BOE PCTFSWBUJPOT UIBU UIF "VEJU $PNNJUUFF SFDFJWFE GSPN QFSGPSNJOH JUT EVUJFT BDDPSEJOH UP UIJT DIBSUFS 0UIFS USBOTBDUJPOT EFFNFE BQQSPQSJBUF UP CF EJTDMPTFE UP TIBSFIPMEFST BOE JOWFTUPST BOE BSF XJUIJO UIF "VEJU Committeeâ&#x20AC;&#x2122;s authorities and responsibilities as assigned by the Board of Directors. 5P SFQPSU UP UIF #PBSE PG %JSFDUPST GPS SFDUJĂ&#x2021;DBUJPO XJUIJO UIF QFSJPE PG UJNF UIBU UIF "VEJU $PNNJUUFF UIJOLT Ă&#x2021;U JG JU JT GPVOE PS TVTQFDUFE UIBU UIFSF JT B USBOTBDUJPO PS BOZ PG UIF GPMMPXJOH BDUT XIJDI NBZ NBUFSJBMMZ BGGFDU UIF $PNQBOZkT Ă&#x2021;OBODJBM condition and operating results " USBOTBDUJPO XIJDI DBVTFT B DPOĂ&#x2C6;JDU PG JOUFSFTU "OZ GSBVE JSSFHVMBSJUZ PS NBUFSJBM EFGFDU JO BO JOUFSOBM DPOUSPM TZTUFN "O JOGSJOHFNFOU PG UIF MBX PO TFDVSJUJFT BOE FYDIBOHF UIF &YDIBOHFkT SFHVMBUJPOT PS BOZ MBX SFMBUJOH UP UIF Companyâ&#x20AC;&#x2122;s business *G UIF $PNQBOZkT #PBSE PG %JSFDUPST PS NBOBHFNFOU GBJMT UP NBLF B SFDUJĂ&#x2021;DBUJPO XJUIJO UIF QFSJPE PG UJNF BOZ "VEJU $PNNJUUFF NFNCFS NBZ SFQPSU PO TVDI USBOTBDUJPO PS BDU UP UIF 0Ă¨DF PG UIF 4FDVSJUJFT BOE &YDIBOHF Commission or the Exchange. 5P JOWFTUJHBUF JNNFEJBUFMZ JO DBTF UIBU FYUFSOBM BVEJUPS OPUJĂ&#x2021;FT UIF GSBVE DBTFT JO UIF $PNQBOZ BOE UP SFQPSU UIF SFTVMU of the preliminary investigation to the Securities and Exchange Commission and the external auditor within 30 days after receiving the written notice from the external auditor. To have at least one Audit Committee member attend the Board of Directorsâ&#x20AC;&#x2122; meeting every time that there is an agenda PO BQQSPWBM PG Ă&#x2021;OBODJBM SFQPSUT To meet with the Companyâ&#x20AC;&#x2122;s legal department regularly, and may consult with external lawyers as necessary. To perform other duties as assigned by the Board of Directors and with consent from the Audit Committee. The Audit Committee is responsible to the Board of Directors according to the duties and responsibilities assigned by the Board of Directors, while the responsibilities for all activities of the Company towards third persons are still vested in the entire Board of Directors.

Nomination and Remuneration Committee The Nomination and Remuneration Committee as at 31 December 2013 comprises the following: 1. Mrs. Aruni Kettratad Chairperson of the Nomination and Remuneration Committee 2. Dr. Chanvit Tanphiphat, MD Member of the Nomination and Remuneration Committee 3. Mr. Chong Toh Member of the Nomination and Remuneration Committee Mr. Banphot Kittikinglert, Company Secretary, is the secretary of the Nomination and Remuneration Committee.

Annual Report 2013

vi. Approving the remuneration, including the annual compensation and salary adjustment, of head of corporate internal audit vii. Making appropriate inquiries of management and head of corporate internal audit to determine whether there are inappropriate scope or resource limitations that impede the ability of the internal audit activity to execute its responsibilities

Bumrungrad Hospital Public Company Limited

Term of the Nomination and Remuneration Committee The Nomination and Remuneration Committee has a term of three years. Members of the Nomination and Remuneration Committee may be re-elected upon expiration of the term.

Duties and Responsibilities of the Nomination and Remuneration Committee The duties and responsibilities of the Nomination and Remuneration Committee, in accordance with Nomination and Remuneration Committeeâ&#x20AC;&#x2122;s Charter, are as follows: B /PNJOBUJPO 1. To consider the appropriate size, composition and term of the Board of Directors. 2. To consider and recommend whether there should be a retirement age for directors, and to recommend to the Board of Directors the directorsâ&#x20AC;&#x2122; retirement age. 5P GPSNVMBUF BOE SFWJFX RVBMJĂ&#x2021;DBUJPOT PG EJSFDUPST BOE NFNCFST PG UIF $PNNJUUFFT 4. To propose and review candidates for the director position in case of vacancies or for any other reasons, including collecting a list of candidates nominated by shareholders, to be approved by the Board of Directors and/or Shareholdersâ&#x20AC;&#x2122; Meeting as the case may be. 5P DPOTJEFS BOE QSPQPTF RVBMJĂ&#x2021;FE EJSFDUPST UP CF B NFNCFS PG B $PNNJUUFF XIFO UIFSF JT B WBDBODZ C 3FNVOFSBUJPO 1. To determine the procedures and criteria for fair and reasonable compensation for directors and Committee members. 2. To recommend remuneration for directors and Committee members, including remuneration of the Nomination and Remuneration Committee members, to the Board of Directors and/or Shareholdersâ&#x20AC;&#x2122; Meeting, as the case may be. 3. To implement a process for assessing the performance of the Board of Directors and Committees, including proposing their Performance Evaluation Form. D 5P QFSGPSN PUIFS EVUJFT SFMFWBOU UP UIF /PNJOBUJPO BOE 3FNVOFSBUJPO $PNNJUUFF BT NBZ CF BTTJHOFE CZ UIF #PBSE Governing Board of Bumrungrad International Hospital, Bangkok 5IF (PWFSOJOH #PBSE PG #VNSVOHSBE *OUFSOBUJPOBM )PTQJUBM #BOHLPL BT BU %FDFNCFS DPNQSJTFT UIF GPMMPXJOH 1. Dr. Visuit Vivekaphirat, MD Chairperson .S +BNFT .BUUIFX #BOOFS 4FDSFUBSZ &Y PĂ¨DJP 3. Dr. Winyou Ratanachai, MD Member 4. Dr. Oradee Chandavasu, MD Member 5. Dr. Rujapong Sukhabote, MD Member 6. Dr. Sira Sooparb, MD Member .T 4PQIBWBEFF 6UUBNPCPM .FNCFS 8. Dr. Roekchai Tulyapronchote, MD Member 9. Dr. Chanvit Tanphiphat, MD Member 10. Dr. Jitra Anuras, MD Member %S 4JOO "OVSBT .% &Y PĂ¨DJP .S ,BNPOTBL 3FVOHKBSFBSOSVOH &Y PĂ¨DJP .T +JSBQPSO -FLEVNSPOHTBL &Y PĂ¨DJP .T 7BSBOZB 4FVQTVL &Y PĂ¨DJP .ST "SUJSBU $IBSVLJUQJQBU &Y PĂ¨DJP .S 4PNTBL 7JWBUUBOBTJODIBJ &Y PĂ¨DJP %S ,PSQPOH 3PPLLBQBO &Y PĂ¨DJP

5FSN PG UIF (PWFSOJOH #PBSE 5IF (PWFSOJOH #PBSE IBT B UFSN PG UXP ZFBST .FNCFST PG UIF (PWFSOJOH #PBSE NBZ CF SF FMFDUFE VQPO FYQJSBUJPO of the term.

%VUJFT BOE 3FTQPOTJCJMJUJFT PG UIF (PWFSOJOH #PBSE 5IF (PWFSOJOH #PBSE IBT UIF PCKFDUJWF UP SFDPNNFOE BOE JNQMFNFOU UIF )PTQJUBM 1PMJDZ QSPNPUF QBUJFOU TBGFUZ BOE performance improvement, provide quality patient care and provide for organizational management and planning of the IPTQJUBM 5IF (PWFSOJOH #PBSE IBT UIF TDPQF PG EVUJFT BOE SFTQPOTJCJMJUJFT JO BDDPSEBODF XJUI (PWFSOJOH #PBSE #ZMBXT Rules and Regulations of Bumrungrad International Hospital, Bangkok as follows:

1. To organize physicians and other practitioners granted clinical privileges at the Hospital into a medical staff under Professional 4UBGG #ZMBXT 3VMFT BOE 3FHVMBUJPOT BQQSPWFE CZ UIF (PWFSOJOH #PBSE 2. To appoint and reappoint Medical Staff members and assign clinical privileges in accordance with Professional Staff Bylaws, Rules and Regulations. 3. To establish and amend, together with the Medical Staff, and approve Professional Staff Bylaws, Rules and Regulations which set forth its organization and governance. 4. To assign to the Medical Staff reasonable authority to ensure appropriate professional care to Hospital patients, including to direct that all reasonable and necessary steps be taken by the Medical Staff and Hospital administration for meeting JCI and HA accreditation standards and complying with applicable laws and regulations. Investment Committee The Companyâ&#x20AC;&#x2122;s Investment Committee as at 31 December 2013 comprises the following: 1. Mr. Chai Sophonpanich Chairperson 2. Mrs. Linda Lisahapanya Member 3. Mr. Chong Toh Member 4. Dr. Suwan Walaisathien Member 5. Mr. Dennis Michael Brown Member Term of the Investment Committee The Investment Committee has a term of three years. Members of the Investment Committee may be re-elected upon expiration of the term.

Duties and Responsibilities of the Investment Committee The duties and responsibilities of the Investment Committee, in accordance with Investment Committeeâ&#x20AC;&#x2122;s Charter, are as follows: 1. To consider investment opportunities, their appropriateness and feasibilities, and investment structure of each investment project. Investment projects include the Companyâ&#x20AC;&#x2122;s annual capital expenditure, expansion and renovation of the Bangkok IPTQJUBM GBDJMJUJFT JOWFTUNFOU BOE PS KPJOU WFOUVSF CZ UIF $PNQBOZ TVCTJEJBSZ PS BĂ¨MJBUF JO OFX QSPKFDU CVTJOFTT PS DPNQBOZ both within Thailand or abroad. 5P DPOTJEFS Ă&#x2021;OBODJBM TUBUVT PG UIF $PNQBOZ JO PSEFS UP FWBMVBUF UIF $PNQBOZkT JOWFTUNFOU DBQBDJUZ 3. To recommend investment projects which have been considered by the Investment Committee to the Board of Directors for approval. 4. To monitor result of an investment made by the Company in terms of its performance and to consider any action necessary to minimize the Companyâ&#x20AC;&#x2122;s risks from investment. 5. To perform other duties relevant to the Investment Committee as may be assigned by the Board of Directors.

Annual Report 2013

Bumrungrad Hospital Public Company Limited

Organization Chart

Board of Directors

Managing Directors

Chairperson of the Medical Board

Group Medical Director

Chief Executive OĂ¨cer

Corporate Chief Financial OĂ¨cer

Medical Director

Hospital Chief Financial OĂ¨cer

1. 2.

The Companyâ&#x20AC;&#x2122;s Management Mrs. Linda Dr. Dhanit %S 4JOO .S %FOOJT .JDIBFM .S %JDLPO .S ,FOOFUI #FBTMFZ .S +BNFT .BUUIFX

8. Dr. Jitra

.S 4PNTBL

.S ,BNPOTBL

.ST "SUJSBU

Corporate Chief Executive OĂ¨cer

Corporate Chief Information OĂ¨cer

Chief Operating OĂ¨cer

Chief Administrative OĂ¨cer

as at 31 December 2013 consists of the following: Lisahapanya Managing Director Dheandhanoo, MD Chairperson of the Medical Board "OVSBT .% (SPVQ .FEJDBM %JSFDUPS #SPXO $PSQPSBUF $IJFG &YFDVUJWF 0Ă¨DFS 4NBSU (SJMM $PSQPSBUF $IJFG *OGPSNBUJPO 0Ă¨DFS -PWF +S $PSQPSBUF $IJFG 'JOBODJBM 0Ă¨DFS #BOOFS $IJFG &YFDVUJWF 0Ă¨DFS Bumrungrad International Hospital, Bangkok Anuras, MD Acting Medical Director, Bumrungrad International Hospital, Bangkok 7JWBUUBOBTJODIBJ )PTQJUBM $IJFG 'JOBODJBM 0Ă¨DFS Bumrungrad International Hospital, Bangkok 3FVOHKBSFBSOSVOH $IJFG 0QFSBUJOH 0Ă¨DFS Bumrungrad International Hospital, Bangkok $IBSVLJUQJQBU $IJFG "ENJOJTUSBUJWF 0Ă¨DFS Bumrungrad International Hospital, Bangkok

Managementâ&#x20AC;&#x2122;s authority to approve the capital expenditure Managing Director is the highest-ranking corporate executive of the management authorized by the Board of Directors to approve for all budgeted capital expenditure or project up to Baht 40 million per capital expenditure or project.

Age

%PDUPS PG .FEJDJOF .BIJEPM 6OJWFSTJUZ #PBSE $FSUJĂ&#x2021;DBUJPO /FVSPTVSHFSZ 6OJUFE ,JOHEPN %PDUPS PG .FEJDJOF $IVMBMPOHLPSO 6OJWFSTJUZ #PBSE $FSUJĂ&#x2021;DBUJPOT - American Board of Internal Medicine "NFSJDBO #PBSE PG (BTUSPFOUFSPMPHZ

.BTUFS PG 'JOBODF 6OJWFSTJUZ PG *MMJOPJT 64" %JSFDUPS $FSUJĂ&#x2021;DBUJPO 1SPHSBN $MBTT Thai Institute of Directors

.# $I# #BDIFMPS PG .FEJDJOF BOE #BDIFMPS PG 4VSHFSZ -FFET 6OJWFSTJUZ 6OJUFE ,JOHEPN '3$4 'FMMPXTIJQ PG UIF 3PZBM $PMMFHF PG 4VSHFPOT PG &EJOCVSHI 6OJUFE ,JOHEPN

#BDIFMPS PG 4DJFODF 6OJWFSTJUZ PG $PMPSBEP 64" - Advanced Management Program, The Wharton 4DIPPM 6OJWFSTJUZ PG 1FOOTZMWBOJB 64" - The Joint State-Private Sectors Course, Class 6, The National Defense College of Thailand %JSFDUPS $FSUJĂ&#x2021;DBUJPO 1SPHSBN $MBTT Thai Institute of Directors - Chairman 2000, Class 10/2004, Thai Institute of Directors

Education

1.18

Shareholding*

Annual Report 2013

- Sister of Mr. Chai - Managing Director, Bumrungrad Hospital Pcl. Sophonpanichâ&#x20AC;&#x2122;s spouse

Family Relationship Work Experience between Management - Spouse of Mrs. Linda - 2010 â&#x20AC;&#x201C; Present Lisahapanyaâ&#x20AC;&#x2122;s sister $IBJSNBO BOE $IJFG &YFDVUJWF 0Ă¨DFS - Father of Mr. Chong Bangkok Insurance Pcl. Tohâ&#x20AC;&#x2122;s spouse - 1986 â&#x20AC;&#x201C; Present Chairman, Charoong Thai Wire & Cable Pcl. - 1988 â&#x20AC;&#x201C; Present $IBJSNBO 'VSVLBXB .FUBM 5IBJMBOE 1DM - 1968 â&#x20AC;&#x201C; Present Director, Bangkok Life Insurance Co., Ltd. - 1968 â&#x20AC;&#x201C; Present Vice Chairman, Thai Reinsurance Pcl. - Professor Emeritus, Department of Surgery, 'BDVMUZ PG .FEJDJOF $IVMBMPOHLPSO 6OJWFSTJUZ

* Shareholding as at 27 December 2013, including both preference and ordinary shares, and shares held by spouse and minors.

Director Chairperson of the Medical Board 5. Dr. Sinn Anuras, MD Director (SPVQ .FEJDBM %JSFDUPS

4. Dr. Dhanit Dheandhanoo, MD

Director Managing Director

3. Mrs. Linda Lisahapanya

Vice Chairperson of the Board of Directors Member of the Nomination and Remuneration Committee

2. Dr. Chanvit Tanphiphat, MD

Chairperson of the Board of Directors

1. Mr. Chai Sophonpanich

Name / Position

Attachment 1 Details of Management and Controlling Parties Directors

86 68

Age

1I % JO -BX (FPSHF 8BTIJOHUPO 6OJWFSTJUZ --. )PXBSE 6OJWFSTJUZ - Barrister, Thai Bar Association 'JSTU IPOPSFE --# $IVMBMPOHLPSO 6OJWFSTJUZ

- Master of Science in Management, .BTTBDIVTFUUT *OTUJUVUF PG 5FDIOPMPHZ 64" - Bachelor of Arts in Philosophy, Politics and &DPOPNJDT 0YGPSE 6OJWFSTJUZ 6OJUFE ,JOHEPN - Director Accreditation Program, Class 54/2006, Thai Institute of Directors

Education

0.006

0.05

Shareholding*

Family Relationship Work Experience between Management - Spouse of Mr. Chai - 2005 â&#x20AC;&#x201C; Present Sophonpanichâ&#x20AC;&#x2122;s Executive Vice President, International Banking daughter (SPVQ #BOHLPL #BOL 1DM - 2005 â&#x20AC;&#x201C; Present Executive Chairman, Bualuang Securities Pcl. - 2001 â&#x20AC;&#x201C; Present Director, Bualuang Securities Pcl. - 2000 â&#x20AC;&#x201C; Present Director, Asia Cement Pcl. - 2001 â&#x20AC;&#x201C; 2005 President, Bualuang Securities Pcl. - 1999 â&#x20AC;&#x201C; 2005 Director, Bualuang Finance Co., Ltd. - 2000 â&#x20AC;&#x201C; 2001 President, Bualuang Finance Co., Ltd. - 2005 â&#x20AC;&#x201C; Present Chairman of SVI Pcl. - 2004 â&#x20AC;&#x201C; Present Chairman of Saver Club - 2002 â&#x20AC;&#x201C; Present Executive Director of Berli Jucker Pcl. - 2002 â&#x20AC;&#x201C; Present Legal consultant - 2000 â&#x20AC;&#x201C; 2002 Deputy Minister, Ministry of Commerce - 1981 â&#x20AC;&#x201C; 2000 Legal Consultant for various companies - 1979 7JDF (PWFSOPS 1FUSPMFVN "VUIPSJUZ PG 5IBJMBOE - 1976 Legal Consultant, The World Bank, Washington, D.C. - 1974 )FBE PG 5BYFT %JWJTJPO 4 ( 7 /B 5IBMBOH - 1971 -BXZFS )BMF BOE %PSS #PTUPO 64"

* Shareholding as at 27 December 2013, including both preference and ordinary shares, and shares held by spouse and minors.

Director

7. Dr. Suvarn Valaisathien

Director Member of the Nomination and Remuneration Committee

6. Mr. Chong Toh

Name / Position

Bumrungrad Hospital Public Company Limited

- Master of Business Administration, $IVMBMPOHLPSO 6OJWFSTJUZ - Director Accreditation Program, Class 5/2003, Thai Institute of Directors - Audit Committee Program, Class 2/2004, Thai Institute of Directors - Role of Chairman Program, Class 14/2006, Thai Institute of Directors .#" 4BTJO (SBEVBUF *OTUJUVUF PG #VTJOFTT "ENJOJTUSBUJPO $IVMBMPOHLPSO 6OJWFSTJUZ # 4 "DDPVOUJOH 4LJENPSF $PMMFHF /FX :PSL 6 4 " %JSFDUPS $FSUJĂ&#x2021;DBUJPO 1SPHSBN Thai Institute of Directors - Director Accreditation Program, 2005, Thai Institute of Directors - Audit Committee Program, 2005, Thai Institute of Directors - The Role of Chairman, 2005, Thai Institute of Directors $IJFG 'JOBODJBM 0Ă¨DFS - Monitoring the System of Internal Control and Risk Management, 2007 - Monitoring the Internal Audit Function, 2007 - Monitoring Fraud Risk Management, 2009 - Monitoring of the Quality of Financial Reporting, 2009

Education

0.003

Shareholding*

Annual Report 2013

Work Experience %JSFDUPS (FOFSBM $BSE 4FSWJDFT $P -UE - Director, Indhra Insurance Pcl. - Director, Dhanamitr Factoring Pcl. - Director, Malee Sampran Pcl.

- Director/ Executive Director, Central Pattana Pcl. - Director/ Executive Director, Central Plaza Hotel Pcl. - Chairman of the Audit Committee and Director, Bualuang Securities Pcl. &YFDVUJWF %JSFDUPS $FOUSBM (SPVQ PG $PNQBOJFT - Director/ Executive Director, Central Retail Corporation Co., Ltd. .FNCFS PG #PBSE 6OJWFSTJUZ "GGBJST $IJBOHSBJ 3BKBCIBU 6OJWFSTJUZ $POTVMUBOU .BSLFU GPS "MUFSOBUJWF *OWFTUNFOU ."*

Family Relationship Work Experience between Management - 2001 â&#x20AC;&#x201C; Present Director, S&P Syndicate Pcl. - 1991 â&#x20AC;&#x201C; Present -FHBM $POTVMUBOU %IBNSPOHUIBN -BX 0Ă¨DF

* Shareholding as at 27 December 2013, including both preference and ordinary shares, and shares held by spouse and minors.

Independent Director Member of the Audit Committee

9. Mr. Prin Chirathivat 51

8. .T 4PQIBWBEFF 6UUBNPCPM

Independent Director Chairperson of the Audit Committee

Age

Name / Position

Age

.BTUFS PG #VTJOFTT "ENJOJTUSBUJPO 6OJWFSTJUZ PG 1PSUMBOE 0SFHPO 64" 3PMF PG UIF /PNJOBUJPO BOE (PWFSOBODF $PNNJUUFF 3/( *0% 5SBJOJOH %JSFDUPS "DDSFEJUBUJPO 1SPHSBN %"1 IOD Training 3PMF PG UIF $PNQFOTBUJPO $PNNJUUFF 3$$ 2013, IOD Training

- Bank Management, City of London College of #BOLJOH -POEPO 6OJUFE ,JOHEPN - Director Accreditation Program, Class CP/2005, Thai Institute of Directors

Education

Shareholding*

Family Relationship Work Experience between Management - 2010 â&#x20AC;&#x201C; Present Independent Director, Dusit Thani Pcl. - 1982 â&#x20AC;&#x201C; Present 7JDF $IBJSQFSTPO -BOENBSL )PUFM (SPVQ - 1957 â&#x20AC;&#x201C; 1990 Executive Vice President, Bangkok Bank Pcl. - 2009 â&#x20AC;&#x201C; Present Managing Director, AA Talent Recruitment Co., Ltd. - 2006 â&#x20AC;&#x201C; 2008 Freelance consultant in HR management services - 1987 â&#x20AC;&#x201C; 2005 Partner-in-Charge, Recruitment & Human Resources Consulting Department, Ernst & Young, Thailand

* Shareholding as at 27 December 2013, including both preference and ordinary shares, and shares held by spouse and minors.

Independent Director Chairperson of the Nomination and Remuneration Committee

11. Mrs. Aruni Kettratad

Independent Director Member of the Audit Committee

10. Mr. Soradis Vinyaratn

Name / Position

Bumrungrad Hospital Public Company Limited

- Bachelors of Science in Computation, 6OJWFSTJUZ PG .BODIFTUFS 6.*45 &OHMBOE

%PDUPS PG .FEJDJOF .BIJEPM 6OJWFSTJUZ #PBSE $FSUJÃ&#x2021;DBUJPO /FVSPTVSHFSZ 6OJUFE ,JOHEPN %PDUPS PG .FEJDJOF $IVMBMPOHLPSO 6OJWFSTJUZ #PBSE $FSUJÃ&#x2021;DBUJPOT - American Board of Internal Medicine "NFSJDBO #PBSE PG (BTUSPFOUFSPMPHZ &YFDVUJWF 1SPHSBN (SBEVBUF 4DIPPM PG #VTJOFTT 4UBOGPSE 6OJWFSTJUZ - Bachelorâ&#x20AC;&#x2122;s Degree of Chemistry, Valparaiso 6OJWFSTJUZ 64" - Master of Business Administration in Health BOE )PTQJUBM "ENJOJTUSBUJPO 6OJWFSTJUZ PG 'MPSJEB 64"

.BTUFS PG 'JOBODF 6OJWFSTJUZ PG *MMJOPJT 64" %JSFDUPS $FSUJÃ&#x2021;DBUJPO 1SPHSBN $MBTT Thai Institute of Directors

Education

Annual Report 2013

- Clinical Professor Emeritus, Director, Neurosurgery 6OJU %FQBSUNFOU PG 4VSHFSZ 'BDVMUZ PG .FEJDJOF 3BNBUIJCPEJ )PTQJUBM .BIJEPM 6OJWFSTJUZ - 1987 â&#x20AC;&#x201C; 1994 Professor and Vice Chairperson of Medical "GGBJST 6OJWFSTJUZ .FEJDBM $FOUFS -VCCPDL 5FYBT 64" - 2011 â&#x20AC;&#x201C; Present $PSQPSBUF $IJFG &YFDVUJWF 0Ã¨DFS Bumrungrad Hospital Pcl. - 2006 â&#x20AC;&#x201C; 2011 $IJFG &YFDVUJWF 0Ã¨DFS Bumrungrad International Limited - 2004 â&#x20AC;&#x201C; 2006 $IJFG 0QFSBUJOH 0Ã¨DFS Bumrungrad International Hospital, Bangkok - 1980 â&#x20AC;&#x201C; 1984, 1985 â&#x20AC;&#x201C; 2003 Senior Vice President, Operations Northern Region, Tenet Healthcare Corporation $IJFG &YFDVUJWF 0Ã¨DFS "VTUSBMJBO .FEJDBM Enterprises, Australia $IJFG &YFDVUJWF 0Ã¨DFS .PVOU &MJ[BCFUI Hospital, Ltd. - 2013 â&#x20AC;&#x201C; Present $PSQPSBUF $IJFG *OGPSNBUJPO 0Ã¨DFS Bumrungrad International Limited - 2011 â&#x20AC;&#x201C; 2013 Cofounder, Clouded Minds Ltd. - 2008 â&#x20AC;&#x201C; 2011 Principal Solutions Architect, Microsoft Corporation - 2008 Solutions Manager, Microsoft Corporation - 2005 â&#x20AC;&#x201C; 2007 $PGPVOEFS BOE $00 (MPCBM $BSF 4PMVUJPOT

Family Relationship Work Experience between Management - Sister of Mr. Chai - Managing Director, Bumrungrad Hospital Pcl. Sophonpanichâ&#x20AC;&#x2122;s spouse

0.003

0.007

Shareholding*

* Shareholding as at 27 December 2013, including both preference and ordinary shares, and shares held by spouse and minors.

$PSQPSBUF $IJFG *OGPSNBUJPO 0Ã¨DFS

5. .S %JDLPO 4NBSU (SJMM

4. Mr. Dennis Michael Brown

Member of Investment Committee $PSQPSBUF $IJFG &YFDVUJWF 0Ã¨DFS

Director Chairperson of the Medical Board 3. Dr. Sinn Anuras, MD Director (SPVQ .FEJDBM %JSFDUPS

Director Managing Director

2. Dr. Dhanit Dheandhanoo, MD

Age

Name / Position

1. Mrs. Linda Lisahapanya

Management

6. Mr. Kenneth Beasley Love, Jr.

9. Mr. Kamonsak Reungjarearnrung

Shareholding*

- 2013 â&#x20AC;&#x201C; Present Acting Medical Director, Bumrungrad International - 2009 â&#x20AC;&#x201C; Present Senior Associate Medical Director, Bumrungrad - 2006 â&#x20AC;&#x201C; 2009 Associate Medical Director, Bumrungrad International - 2000 â&#x20AC;&#x201C; 2006 Director of Medical Education, Bumrungrad International - 1994 â&#x20AC;&#x201C; Present Bumrungrad International Hospital, Bangkok - 1991 â&#x20AC;&#x201C; 1992 Pharmacist, Thatoom Hospital, Surin Province

Family Relationship Work Experience between Management - 30 plus yearsâ&#x20AC;&#x2122; healthcare experience most SFDFOUMZ $IJFG 'JOBODJBM 0Ă¨DFS #VNSVOHSBE International Limited, Thailand, preceded by Senior Vice President, Financial Operations, Tenet Healthcare Corporation, Santa Barbara, $BMJGPSOJB 64" #61" )FBMUI $BSF "TJB QSFWJPVTMZ 7*45"

%JSFDUPS BOE $IJFG &YFDVUJWF 0Ă¨DFS 4VCBOH Jaya Medical Center, Kuala Lumpur, Malaysia

* Shareholding as at 27 December 2013, including both preference and ordinary shares, and shares held by spouse and minors.

- MBA in Healthcare Management, European School of Management, Paris, France

%PDUPS PG .FEJDJOF $IVMBMPOHLPSO 6OJWFSTJUZ #PBSE $FSUJĂ&#x2021;DBUJPOT - American Board of Internal Medicine - American Board of Allergy and Clinical Immunology

$IJFG 0QFSBUJOH 0Ă¨DFS Bumrungrad International Hospital, Bangkok

- Masterâ&#x20AC;&#x2122;s Degree in Health Services "ENJOJTUSBUJPO .FEJDBM $PMMFHF PG 7JSHJOJB 64"

- Bachelor of Science in Commerce and "DDPVOUJOH #FMMBSNJOF 6OJWFSTJUZ JO ,FOUVDLZ 64 o $FSUJĂ&#x2021;FE 1VCMJD "DDPVOUBOU JO #FMMBSNJOF 6OJWFSTJUZ JO ,FOUVDLZ

Education

$IJFG &YFDVUJWF 0Ă¨DFS Bumrungrad International Hospital, Bangkok 8. Dr. Jitra Anuras, MD Acting Medical Director Bumrungrad International Hospital, Bangkok

7. Mr. James Matthew Banner

$PSQPSBUF $IJFG 'JOBODJBM 0Ă¨DFS

Age

Name / Position

Bumrungrad Hospital Public Company Limited

Age

.#" &YFDVUJWF 1SPHSBN ,BTFUTBSU 6OJWFSTJUZ ##" "DDPVOUJOH #BOHLPL 6OJWFSTJUZ $FSUJÃ&#x2021;FE 1VCMJD "DDPVOUBOU $1" /P

Shareholding*

.BTUFS PG 4DJFODF .4D JO )VNBO 3FTPVSDF 0.0001 .BOBHFNFOU $IVMBMPOHLPSO 6OJWFSTJUZ 4BTJO (SBEVBUF *OTUJUVUF PG #VTJOFTT "ENJOJTUSBUJPO .4 .BOBHFNFOU JO 4USBUFHJD .BSLFUJOH "TTVNQUJPO 6OJWFSTJUZ Education

Annual Report 2013

Family Relationship Work Experience between Management - 2011 $IJFG "ENJOJTUSBUJWF 0Ã¨DFS 7FKUIBOJ )PTQJUBM - 2006 â&#x20AC;&#x201C; 2010 Hospital Administration, Bangkok Dusit Medical Services - 2005 â&#x20AC;&#x201C; 2006 Central Procurement Director, /BUJPOBM )FBMUIDBSF 4ZTUFNT #%.4

- July 2013 â&#x20AC;&#x201C; Present )PTQJUBM $IJFG 'JOBODJBM 0Ã¨DFS Bumrungrad International - September 2012 â&#x20AC;&#x201C; June 2013 Vice President - Regional Finance & "DDPVOUJOH -J 'VOH 5IBJMBOE $P -UE - November 2011 â&#x20AC;&#x201C; August 2012 4FOJPS 'JOBODF %JSFDUPS 0.( 5IBJMBOE $P -UE - April 2011 â&#x20AC;&#x201C; September 2011 7JDF 1SFTJEFOU o "ENJOJTUSBUJPO (SPVQ Seacon Development Public Company Limited - November 2007 â&#x20AC;&#x201C; March 2011 $IJFG 'JOBODJBM 0Ã¨DFS 4BNJUJWFK )PTQJUBM (SPVQ

* Shareholding as at 27 December 2013, including both preference and ordinary shares, and shares held by spouse and minors.

)PTQJUBM $IJFG 'JOBODJBM 0Ã¨DFS Bumrungrad International Hospital, Bangkok

11. Mr. Somsak Vivattanasinchai

$IJFG "ENJOJTUSBUJWF 0Ã¨DFS Bumrungrad International Hospital, Bangkok

10. Mrs. Artirat Charukitpipat

Name / Position

Lisahapanya

Anuras, MD

Banner

Chan

(JMMFTQJF

Lee, MD

Tantiratapong

Seupsuk

Reungjarearnrung

Charukitpipat

Scharer

Bernath

Bodmer

2. Mrs. Linda

3. Dr. Sinn

4. Mr. James Matthew

5. Mr. Bernard Charnwut

6. Mr. Daniel

7. Dr. Jennifer

8. Mr. Yanchai

9. Ms. Varanya

10. Mr. Kittiphan

11. Mr. Kamonsak

12. Mrs. Artirat

13. Mr. Fritz

14. Mr. Etienne Armand

15. Mr. Peter E.

X /

Vitallife Corporation Ltd.

"TJB (MPCBM Health Co., Ltd.

/ X

"TJB (MPCBM Research Co., Ltd.

/ /

Ruenmongkol Co., Ltd.

Subsidiaries

Life and Longevity Co., Ltd.

/ /

Bumrungrad Personnel Development Center Co., Ltd.*

Notes: 1. Director 9 Chairman Management 2. CDE Trading Company Limited (formerly Global Care Solutions (Thailand) Company Limited) is not shown in the above table as no director/management of the Company holds the position of director, chairman or management in CDE Trading Company Limited. 3. Bumrungrad Personnel Development Center Co., Ltd. has been registered on 6th January 2014 4. Vitallife International AG has been registered on 16th January 2014

Sophonpanich

1. Mr. Chai

Directors

Companies

Details of Directorships in Subsidiaries and Related Companies

/ / /

Vitallife International "(

/ / / /

Bumrungrad International Limited

Associated Company

Bumrungrad Hospital Public Company Limited

2VBMJĂ&#x2021;DBUJPOT PG JOEFQFOEFOU EJSFDUPST BSF BT GPMMPXT 1. Holds shares not more than one percent of total shares with voting right of the Company, the Companyâ&#x20AC;&#x2122;s parent company, subsidiary company, associate company, major shareholder or controlling person, inclusive of the shares held by related persons of such independent director. 2. Is not an executive director, employee, staff, advisor with salary, or controlling person of the Company, the Companyâ&#x20AC;&#x2122;s parent company, subsidiary company, associate company, subsidiary company of the same level, major shareholder or controlling QFSTPO BU QSFTFOU BOE UXP ZFBST QSJPS UP UIF BQQPJOUNFOU 3. Is not related, whether by blood or legal registration as father, mother, spouse, sibling and child, including spouse of children, with the management, major shareholder, controlling person or those who will be nominated as management or controlling person of the Company or subsidiary. 4. Does not have business relationship with the Company, the Companyâ&#x20AC;&#x2122;s parent company, subsidiary company, associate company, major shareholder or controlling person, in the manner which may interfere with his independent judgment, and neither is a TJHOJĂ&#x2021;DBOU TIBSFIPMEFS PS DPOUSPMMJOH QFSTPO PG BOZ QFSTPO IBWJOH B CVTJOFTT SFMBUJPOTIJQ XJUI UIF $PNQBOZ UIF $PNQBOZkT QBSFOU DPNQBOZ TVCTJEJBSZ DPNQBOZ BTTPDJBUF DPNQBOZ NBKPS TIBSFIPMEFS PS DPOUSPMMJOH QFSTPO BU QSFTFOU BOE UXP ZFBST QSJPS UP UIF BQQPJOUNFOU XJUI EFUBJMT BT QFS SVMFT BOE SFHVMBUJPOT PG UIF 4FDVSJUJFT BOE &YDIBOHF $PNNJTTJPO 5IBJMBOE 5. Is not an auditor of the Company, the Companyâ&#x20AC;&#x2122;s parent company, subsidiary company, associate company, major shareholder PS DPOUSPMMJOH QFSTPO BOE JT OPU B TJHOJĂ&#x2021;DBOU TIBSFIPMEFS DPOUSPMMJOH QFSTPO PS QBSUOFS PG BO BVEJU Ă&#x2021;SN XIJDI FNQMPZT BVEJUPST of the Company, the Companyâ&#x20AC;&#x2122;s parent company, subsidiary company, associate company, major shareholder or controlling person BU QSFTFOU BOE UXP ZFBST QSJPS UP UIF BQQPJOUNFOU *T OPU B QSPWJEFS PG BOZ QSPGFTTJPOBM TFSWJDFT JODMVEJOH BT MFHBM BEWJTPS PS Ă&#x2021;OBODJBM BEWJTPS XIP SFDFJWFT TFSWJDF GFFT exceeding Baht two million per year from the Company, the Companyâ&#x20AC;&#x2122;s parent company, subsidiary company, associate DPNQBOZ NBKPS TIBSFIPMEFS PS DPOUSPMMJOH QFSTPO BOE JT OPU B TJHOJĂ&#x2021;DBOU TIBSFIPMEFS DPOUSPMMJOH QFSTPO PS QBSUOFS PG UIF QSPWJEFS PG QSPGFTTJPOBM TFSWJDFT BU QSFTFOU BOE UXP ZFBST QSJPS UP UIF BQQPJOUNFOU 7. Is not a director appointed as a representative of the Companyâ&#x20AC;&#x2122;s director, major shareholder, or shareholder who is related to major shareholder. 8. Does not undertake any business in the same nature and in competition to the business of the Company or the Companyâ&#x20AC;&#x2122;s subsidiary DPNQBOZ PS JT OPU B TJHOJĂ&#x2021;DBOU QBSUOFS JO B QBSUOFSTIJQ OPS BO FYFDVUJWF EJSFDUPS FNQMPZFF TUBGG BEWJTPS XJUI TBMBSZ PS IPMEJOH shares exceeding one per cent of the total number of shares with voting rights of another company which undertakes business in the same nature and in competition to the business of the Company or its subsidiary company. 9. Does not possess any other characteristics that deter the ability to express independent opinions with regards to the Companyâ&#x20AC;&#x2122;s business operations. Remuneration of Directors, Committees and Management Directorsâ&#x20AC;&#x2122; Remuneration and Committeesâ&#x20AC;&#x2122; Remuneration Remuneration of Directors, the Audit Committee and the Nomination and Remuneration Committee for the year ended 31 December 2013 for 11 directors are as follows:

Annual Report 2013

Election of Directors and Management The Nomination and Remuneration Committee has the responsibility to select and nominate candidates to replace directors and members of committees whose terms have expired or for any other reasons, including to consider candidates proposed by shareholders, and to propose to the Board of Directors to approve or to recommend to shareholdersâ&#x20AC;&#x2122; meetings of such appointment. The Nomination BOE 3FNVOFSBUJPO $PNNJUUFF JT SFTQPOTJCMF GPS DPOTJEFSJOH RVBMJĂ&#x2021;DBUJPOT PG DBOEJEBUFT UBLJOH JOUP BDDPVOU UIFJS LOPXMFEHF BCJMJUJFT FYQFSJFODF XIJDI XJMM CF CFOFĂ&#x2021;DJBM UP UIF $PNQBOZ UIFJS MFBEFSTIJQ TLJMMT WJTJPOT FUIJDBM WBMVFT BOE UIFJS JOEFQFOEFODF JO NBLJOH QSPGFTTJPOBM EFDJTJPOT BOE GPS FOTVSJOH UIBU UIF DBOEJEBUFT QPTTFTT UIF RVBMJĂ&#x2021;DBUJPOT BT TUJQVMBUFE JO UIF #PBSE PG %JSFDUPSTk $IBSUFS The process for electing directors in a shareholdersâ&#x20AC;&#x2122; meeting is in accordance with the following rules and principles: 1. Each shareholder has one vote for one share. 2. The election of directors may be either by voting for each individual director, or by voting for a group of directors, whichever way the shareholdersâ&#x20AC;&#x2122; meeting deems appropriate. For each resolution, each shareholder must exercise all of his/her votes for one individual director or for one group of directors. Votes by each shareholder may not be split between any directors or any groups of directors. 5IF FMFDUJPO QBTTFT XJUI UIF NBKPSJUZ PG UIF WPUFT *G UIF OVNCFS PG WPUFT JT FRVBM UIF DIBJSQFSTPO PG UIF NFFUJOH IBT UIF Ă&#x2021;OBM WPUF The process for selection of independent directors is the same as that of directors and management.

94 4/5 4/5 5/5 4/5 5/5 5/5 5/5 4/5 5/5 5/5

2. Dr. Chanvit Tanphiphat, MD

3. Mrs. Linda Lisahapanya

4. Dr. Dhanit Dheandhanoo, MD

5. Mr. Chong Toh

6. Dr. Sinn Anuras, MD

7. Dr. Suvarn Valaisathien

8. .T 4PQIBWBEFF 6UUBNPCPM

9. Mr. Soradis Vinyaratn

10. Mr. Prin ChirathivatĂ?

11. Mrs. Aruni Kettratad

Total

5/5

Number of Meetings

Name 1. Mr. Chai Sophonpanich

4,650,000

400,000

450,000

600,000

1,345,000

125,000

100,000

125,000

100,000

125,000

100,000

120,000

200,000

Board of Directors Annual Meeting Remuneration Remuneration

5,995,000

525,000

500,000

525,000

500,000

525,000

500,000

570,000

800,000

Total

4/4

360,000

100,000

160,000

Audit Committee Number of Meeting Meetings Remuneration

1/1

90,000

40,000

25,000

Nomination and Remuneration Committee Number of Meeting Meetings Remuneration

6,445,000

565,000

625,000

600,000

685,000

525,000

500,000

525,000

500,000

595,000

800,000

Total Remuneration

Bumrungrad Hospital Public Company Limited

Remuneration of Management In 2013, the total remuneration of the 11 executives of the Company and its subsidiaries amounted to Baht 141.08 million. 5IF $PNQBOZ BOE JUT TVCTJEJBSJFT IBE FNQMPZFF CFOFÃ&#x2021;U FYQFOTF QBZBCMF UP UIFJS EJSFDUPST BOE NBOBHFNFOU BT GPMMPXT 4IPSU UFSN FNQMPZFF CFOFÃ&#x2021;UT #BIU NJMMJPO -POH UFSN FNQMPZFF CFOFÃ&#x2021;UT #BIU NJMMJPO 5FSNJOBUJPO CFOFÃ&#x2021;UT #BIU NJMMJPO Total Baht 141.08 million

Annual Report 2013

In 2013, the Investment Committee held 6 meeting. Total remuneration of Baht 0.82 million was paid to the members of the Investment Committee. *O UIF (PWFSOJOH #PBSE IFME NFFUJOHT 5PUBM SFNVOFSBUJPO PG #BIU NJMMJPO XBT QBJE UP UIF NFNCFST PG UIF (PWFSOJOH #PBSE %JSFDUPSTk SFNVOFSBUJPO SFQSFTFOUT UIF CFOFÃ&#x2021;UT QBJE UP UIF $PNQBOZkT EJSFDUPST FYDMVTJWF PG TBMBSJFT BOE SFMBUFE CFOFÃ&#x2021;UT payable to the management. The above remunerations have been approved by shareholders at the shareholdersâ&#x20AC;&#x2122; meeting.

Bumrungrad Hospital Public Company Limited

Annual Report 2013

Corporate Governance

Bumrungrad Hospital Public Company Limited

CORPORATE GOVERNANCE The Company realizes the importance of good corporate governance, and is committed to follow the Principles of Good Governance (VJEFMJOFT JO PSEFS UP NBOBHF JUT CVTJOFTT XJUI USBOTQBSFODZ UP CVJME DPOÃ&#x2021;EFODF GPS BMM TUBLFIPMEFST BOE UP DPNQFUF FÃ¨DJFOUMZ BU UIF JOUFSOBUJPOBM MFWFM 5IF $PNQBOZ UIFSFGPSF XPVME MJLF UP SFQPSU UIF GPMMPXJOH

The Rights of Shareholders 5IF $PNQBOZ BDLOPXMFEHFT UIF JNQPSUBODF PG BMM TIBSFIPMEFSTk SJHIUT JODMVEJOH NBKPS BOE NJOPSJUZ TIBSFIPMEFST 4IBSFIPMEFSTk SJHIUT JODMVEF CBTJD SJHIUT BT JOWFTUPST BOE BT PXOFST PG UIF $PNQBOZ TVDI BT SJHIUT UP CVZ TFMM USBOTGFS UIFJS TIBSFT SJHIUT UP SFDFJWF EJWJEFOET GSPN UIF $PNQBOZ SJHIUT JO TIBSFIPMEFSTk NFFUJOHT SJHIUT UP SFDFJWF DPNQSFIFOTJWF TVÃ¨DJFOU BOE UJNFMZ OFXT BOE JOGPSNBUJPO UISPVHI FBTJMZ BDDFTTJCMF DIBOOFMT SJHIUT UP FYQSFTT UIFJS PQJOJPOT SJHIUT UP QBSUJDJQBUF JO NBLJOH decisions on important issues, such as election of directors, approval of important transactions that affect the direction of the business and operation of the Company, amendment of memorandum of association and articles of association of the Company. *O UIF $PNQBOZ IBT JNQMFNFOUFE UIF GPMMPXJOH UP FODPVSBHF BOE GBDJMJUBUF UIF FYFSDJTF PG TIBSFIPMEFSTk SJHIUT JO UIF BOOVBM HFOFSBM NFFUJOH PG TIBSFIPMEFST 1. The Company gives shareholders the right to propose important and appropriate issues for incorporation as an agenda in UIF $PNQBOZkT BOOVBM HFOFSBM NFFUJOH PG TIBSFIPMEFST BOE UP OPNJOBUF DBOEJEBUFT XJUI BQQSPQSJBUF LOPXMFEHF BCJMJUJFT BOE RVBMJÃ&#x2021;DBUJPOT UP CF DPOTJEFSFE GPS UIF QPTJUJPO PG UIF $PNQBOZkT EJSFDUPS JO BEWBODF CFGPSF UIF BOOVBM HFOFSBM NFFUJOH PG TIBSFIPMEFST 4IBSFIPMEFST DBO Ã&#x2021;OE EFUBJMT PG UIF DSJUFSJB BOE HVJEFMJOFT PO UIF $PNQBOZkT XFCTJUF 2. The Company sends invitation letters to shareholders in advance to inform them of the meeting agendas which include PQJOJPO PG UIF #PBSE PG %JSFDUPST PO FBDI BHFOEB JUFN UPHFUIFS XJUI TVQQPSUJOH EPDVNFOUT BOE JOGPSNBUJPO TVÃ¨DJFOU UP GBDJMJUBUF TIBSFIPMEFST JO NBLJOH UIFJS EFDJTJPOT *O BEEJUJPO UIF JOWJUBUJPO MFUUFS QBDLBHF JODMVEFT EFUBJMT PG SFRVJSFE EPDVNFOUT JO PSEFS UP QSPUFDU TIBSFIPMEFSTk SJHIUT UP BUUFOE UIF TIBSFIPMEFSTk NFFUJOH UPHFUIFS XJUI UIFJS SJHIUT UP WPUF .PSFPWFS UIF JOWJUBUJPO MFUUFS UP UIF TIBSFIPMEFSTk NFFUJOH JT EJTDMPTFE PO UIF $PNQBOZkT XFCTJUF 'PS BOOVBM HFOFSBM meeting of shareholders, the invitation letter is posted on the website 30 days prior to the meeting date. 'PS UIPTF TIBSFIPMEFST VOBCMF UP BUUFOE UIF NFFUJOH UIFTF TIBSFIPMEFST IBWF UIF SJHIU UP BVUIPSJ[F B QFSTPO PS BO JOEFQFOEFOU EJSFDUPS BT UIFJS QSPYZ UP BUUFOE UIF NFFUJOH BOE WPUF PO UIFJS CFIBMG VTJOH POF PG UIF QSPYZ GPSNT TFOU XJUI UIF JOWJUBUJPO MFUUFS .PSFPWFS TIBSFIPMEFST DBO EPXOMPBE UIF QSPYZ GPSN GSPN UIF $PNQBOZkT XFCTJUF 4. The Company implements the barcode system for registration and the voting process, including the use of voting cards. This helps accelerate and ensure the accuracy of the registration and vote counting process. In addition, TIBSFIPMEFST BSF BCMF UP SFHJTUFS BGUFS UIF NFFUJOH IBT TUBSUFE UP FYFSDJTF UIFJS SJHIUT UP WPUF PO BHFOEBT UIBU have not been voted. Upon completion of the meeting, shareholders are able to verify the details. 5. Before going into each agenda, the Chairman of the Board of Directors, who acts as chairman of the meeting, assigns the Company Secretary to inform the meeting of the voting process for each agenda. During the meeting, UIF DIBJSNBO PG UIF NFFUJOH HJWFT BMM TIBSFIPMEFST UIF PQQPSUVOJUZ UP DPNNFOU BTL RVFTUJPOT PS HJWF PQJOJPOT BOE suggestions on any agenda item. The Chairman and management see the importance of every question and give precise and clear answers. 5IF $PNQBOZ 4FDSFUBSZ SFDPSET NJOVUFT PG UIF TIBSFIPMEFSTk NFFUJOHT XIJDI BSF DPSSFDU BOE DPNQMFUF XJUI EFUBJMT PO WPUJOH SFTVMUT PG FBDI BHFOEB *O BEEJUJPO UIF NJOVUFT BSF TFOU UP UIF 4UPDL &YDIBOHF PG 5IBJMBOE BOE QPTUFE PO UIF $PNQBOZkT XFCTJUF XJUIJO EBZT BGUFS UIF NFFUJOH EBUF TP UIBU TIBSFIPMEFST BSF QSPNQUMZ JOGPSNFE and are able to verify.

2. The Equitable Treatment of Shareholders 5IF $PNQBOZ JT TUSPOHMZ DPNNJUUFE UP FRVJUBCMF USFBUNFOU PG FWFSZ TIBSFIPMEFS XIFUIFS UIFZ BSF NBKPS PS NJOPSJUZ TIBSFIPMEFST JOTUJUVUJPOBM JOWFTUPST PS GPSFJHO TIBSFIPMEFST BOE IBT DSFBUFE WBSJPVT NFDIBOJTNT TVDI BT 1. The Company provides a channel for minority shareholders to propose issues deemed important and appropriate UP JODMVEF JO UIF BHFOEB PG UIF $PNQBOZkT BOOVBM HFOFSBM NFFUJOH PG TIBSFIPMEFST BOE UP OPNJOBUF DBOEJEBUFT XJUI BQQSPQSJBUF LOPXMFEHF BCJMJUJFT BOE RVBMJÃ&#x2021;DBUJPOT UP CF DPOTJEFSFE GPS UIF QPTJUJPO PG UIF $PNQBOZkT EJSFDUPS 5IF BOOPVODFNFOU IBT CFFO NBEF UISPVHI UIF 4UPDL &YDIBOHF PG 5IBJMBOE BOE UIF $PNQBOZkT XFCTJUF *OEFQFOEFOU EJSFDUPST will consider and propose the matter to the Board of Directors to be included in the meeting agenda as appropriate. 'PS TIBSFIPMEFST XIP BSF VOBCMF UP BUUFOE UIF TIBSFIPMEFSTk NFFUJOH UIF $PNQBOZ QSPWJEFT QSPYZ GPSNT XIJDI BMMPX TIBSFIPMEFST UP TQFDJGZ UIFJS WPUF PO FBDI BHFOEB 5IF QSPYZ GPSNT XIJDI BSF JO BDDPSEBODF XJUI UIF GPSNBU QSPWJEFE by the Ministry of Commerce, are sent with the invitation letter. As an alternative for shareholders, the Company BMTP QSPQPTFT POF JOEFQFOEFOU EJSFDUPS BT UIF QSPYZ 5IF TIBSFIPMEFSTk NFFUJOHT QSPDFFE BDDPSEJOH UP UIF PSEFS PG UIF BHFOEB XJUIPVU BEEJOH OFX BOE VOJOGPSNFE agenda, in order to give the opportunity to shareholders to study the information on the given agenda before NBLJOH EFDJTJPO .PSFPWFS UIFSF BSF OP DIBOHFT UP UIF JNQPSUBOU JOGPSNBUJPO JO UIF TIBSFIPMEFSTk NFFUJOH

5IF $PNQBOZ TFFT UIF JNQPSUBODF PG UIF DPOTJEFSBUJPO PO USBOTBDUJPOT XIJDI NBZ IBWF DPOÃ&#x2C6;JDU PG JOUFSFTU PS NBZ CF connected or related transactions, and abides by good corporate governance principles, including rules and regulations PG UIF 4FDVSJUJFT BOE &YDIBOHF $PNNJTTJPO BOE UIF 4UPDL &YDIBOHF PG 5IBJMBOE 'PS UIFTF USBOTBDUJPOT EJSFDUPST management and those who are related persons do not participate in the consideration to approve such transactions. 5. The Company provides oversight and control to prevent improper use of inside information. Details can be found in TFDUJPO *OUFSOBM $POUSPM BOE SJTL NBOBHFNFOU *O BEEJUJPO EJSFDUPST BOE NBOBHFNFOU PG UIF $PNQBOZ NVTU SFQPSU UIF QVSDIBTF PS TBMF PG UIF $PNQBOZkT TFDVSJUJFT UP UIF 4FDVSJUJFT BOE &YDIBOHF $PNNJTTJPO BOE UIF $PNQBOZ XJUIJO three business days. The Role of Stakeholders 5IF $PNQBOZ SFDPHOJ[FT JUT SFTQPOTJCJMJUJFT UPXBSET FBDI TUBLFIPMEFS GPS TVTUBJOBCMF NVUVBM CFOFÃ&#x2021;UT XIJDI XJMM MFBE UP TUBCJMJUZ PG UIF CVTJOFTT PQFSBUJPOT 5IF $PNQBOZ JOUFOET UP JOUFSBDU XJUI FBDI QBSUZ GBJSMZ 5IF JNQPSUBOU TUBLFIPMEFST PG UIF $PNQBOZ BSF BT GPMMPXT Shareholders: *O BEEJUJPO UP UIF CBTJD SJHIUT SJHIUT JO BDDPSEBODF XJUI UIF MBXT BOE UIF $PNQBOZkT BSUJDMFT PG BTTPDJBUJPO TVDI BT SJHIUT UP DIFDL OVNCFS PG TIBSFT SJHIUT UP SFDFJWF TIBSF DFSUJÃ&#x2021;DBUFT SJHIUT UP BUUFOE BOE WPUF JO TIBSFIPMEFSTk NFFUJOHT SJHIUT UP FYQSFTT PQJOJPOT JOEFQFOEFOUMZ BU TIBSFIPMEFSTk NFFUJOHT BOE SJHIUT UP SFDFJWF GBJS SFUVSOT UIF $PNQBOZ BMTP QSPWJEFT FRVBM BOE UJNFMZ JOGPSNBUJPO UP BMM TIBSFIPMEFST BOE HJWFT BMM TIBSFIPMEFST UIF SJHIU UP TVHHFTU BOE FYQSFTT UIFJS PQJOJPOT JOEFQFOEFOUMZ PO UIF $PNQBOZkT CVTJOFTT BOE PQFSBUJPOT JO TIBSFIPMEFSTk NFFUJOHT BT UIF $PNQBOZkT PXOFST Customers / Patients: 5IF $PNQBOZ QSPWJEFT QBUJFOU DBSF JO BO FUIJDBM NBOOFS BOE BU UIF CFTU QPTTJCMF RVBMJUZ UBLJOH JOUP DPOTJEFSBUJPO QBUJFOU TBGFUZ QBUJFOUTk TBUJTGBDUJPO BOE FÃ¨DJFODZ JO QSPWJEJOH JUT TFSWJDFT 5IF IPTQJUBMkT .FEJDBM &UIJDT $PNNJUUFF QSPUFDUT QBUJFOUTk SJHIUT *O BEEJUJPO UIF $PNQBOZ IBT B EFQBSUNFOU UP UBLF DVTUPNFS DPNQMBJOUT BOE UP NPOJUPS BOE DPOUJOVPVTMZ JNQSPWF UIF RVBMJUZ PG UIF DBSF QSPWJEFE UP BMM QBUJFOUT UBLJOH JOUP DPOTJEFSBUJPO QBUJFOUTk OFFET BOE TVHHFTUJPOT *O BEEJUJPO UIF $PNQBOZ IBT FOHBHFE B UIJSE QBSUZ DPOTVMUBOU UP NFBTVSF UIF IPTQJUBMkT DVTUPNFS FOHBHFNFOU MFWFM JO PSEFS UP DPOUJOVPVTMZ JNQSPWF UIF IPTQJUBMkT TFSWJDFT GPS QBUJFOUT BOE UP NBJOUBJO QBUJFOUTk MPOH UFSN SFMBUJPOTIJQT XJUI UIF IPTQJUBM Employees: The Company believes that its employees are valuable resources and therefore gives all employees equal opportunity in their employment. The Company has the policy to provide employees with appropriate compensation and appoints a welfare committee to oversee the well-being and safety of its employees. The Company also provides an individual development plan (IDP) for each employee, as well as continuous education and regular training programs to develop and SFJOGPSDF FNQMPZFFTk LOPXMFEHF BCJMJUJFT BOE TLJMMT JO BMM BSFBT JODMVEJOH PQFSBUJPOT NBOBHFNFOU BOE UFDIOJDBM FYQFSUJTF JO PSEFS GPS FNQMPZFFT UP GVMÃ&#x2021;MM UIFJS KPCT NPSF FGGFDUJWFMZ 'VSUIFSNPSF UIF $PNQBOZ IPMET 5PXO )BMM .FFUJOHT UP QSPWJEF PQQPSUVOJUJFT GPS FNQMPZFFT UP WPJDF UIFJS PQJOJPOT PS complain directly to management, implements an Innovation Program where employees are able to propose suggestions to JNQSPWF XPSL QSPDFTT BOE TFSWJDFT BOE IBT BO FNQMPZFF SFDPHOJUJPO QSPHSBN UP JODSFBTF FNQMPZFFTk NPSBMF 5IF $PNQBOZ CFMJFWFT UIBU XPSL FÃ¨DJFODZ JT B SFTVMU PG FNQMPZFFTk MPZBMUZ UP UIF $PNQBOZ BOE JT UIFSFGPSF DPNNJUUFE UP DPOUJOVPVTMZ CVJME BOE BTTFTT UIF FNQMPZFFTk FOHBHFNFOU XJUI UIF $PNQBOZ JO PSEFS UP JNQSPWF JUT IVNBO SFTPVSDFT NBOBHFNFOU Suppliers / Contractors: The Company has a purchasing policy that is fair to all parties concerned. In addition, the Company abides by the terms and conditions of agreements and contracts with all suppliers and contractors and ensures timely payment to all suppliers and contractors. Creditors: The Company is committed to giving information with accuracy and transparency to creditors, abides by loan agreements and loan covenants, and ensures timely payments. The Company believes that good relationships with creditors, including building credibility and trust, are a responsibility of the Company towards its creditors. Competitors: The Company competes with competitors within the rules and regulations, and treats competitors fairly BOE XJUI JOUFHSJUZ 5IF $PNQBOZ GPDVTFT PO DPNQFUJUJPO JO UIF BSFB PG RVBMJUZ BOE FÃ¨DJFODZ PG TFSWJDF GPS UIF CFTU CFOFÃ&#x2021;U of customers and patients. Community: The Company l has established the Corporate Social Responsibility (CSR) Committee to oversee and guide UIF $PNQBOZkT BDUJWJUJFT VOEFSUBLFO UP FOTVSF UIF $PNQBOZ NFFUT JUT TPDJBM SFTQPOTJCJMJUJFT JO BMM JUT BDUJWJUJFT BOE BMTP DPMMBCPSBUF XJUI #VNSVOHSBE )PTQJUBM 'PVOEBUJPO PO UIF NBJO DIBSJUZ QSPKFDUT 5IF $PNQBOZkT $43 FNQIBTJ[FT PO EJSFDUJPOT XIJDI BSF IFBMUI QSPNPUJPO BOE IFBMUI FEVDBUJPO %FUBJMT PG DPNQBOZkT $43 BDUJWJUJFT BSF BWBJMBCMF JO $43 TFDUJPO

4. Disclosure and Transparency 5IF $PNQBOZ SFBMJ[FT UIF JNQPSUBODF PG EJTDMPTJOH JOGPSNBUJPO XIJDI JT TJHOJÃ&#x2021;DBOU GPS TIBSFIPMEFST BOE JOWFTUPST JO NBLJOH UIFJS EFDJTJPOT 5IF $PNQBOZ IBT B QPMJDZ UP EJTDMPTF JOGPSNBUJPO XIJDI JT USBOTQBSFOU DPNQMFUF SFMJBCMF BOE UJNFMZ through various channels which are easily accessible, in order for shareholders and investors to conveniently obtain the EJTDMPTVSFT 5IF $PNQBOZ BMTP FOTVSFT JU BCJEFT CZ UIF SVMFT BOE SFHVMBUJPOT PG UIF 4FDVSJUJFT BOE &YDIBOHF $PNNJTTJPO BOE UIF 4UPDL &YDIBOHF PG 5IBJMBOE

Annual Report 2013

Bumrungrad Hospital Public Company Limited

*OGPSNBUJPO EJTDMPTFE UP UIF QVCMJD JODMVEFT CPUI Ã&#x2021;OBODJBM BOE OPO Ã&#x2021;OBODJBM JOGPSNBUJPO TVDI BT Ã&#x2021;OBODJBM TUBUFNFOUT NBOBHFNFOU EJTDVTTJPOT BOE BOBMZTJT UIF SFQPSU PG UIF BDDPVOUBCJMJUZ PG UIF #PBSE PG %JSFDUPST UP UIF $PNQBOZkT Ã&#x2021;OBODJBM reports, the report of the Audit Committee, connected transactions, structure, duties and responsibilities of the Board of Directors and committees, including statistics on meeting attendance, and corporate governance reports. The Company has many channels to communicate with shareholders and investors. These include those stipulated by SVMFT BOE SFHVMBUJPOT TVDI BT UIF Ã&#x2021;MJOH GPSN BOOVBM SFQPSUT UIF XFCTJUF PG UIF 4UPDL &YDIBOHF PG 5IBJMBOE BOE PUIFS DPNNVOJDBUJPO DIBOOFMT TVDI BT UIF $PNQBOZkT XFCTJUF JO UIF *OWFTUPS 3FMBUJPOT TFDUJPO XIJDI BSF DPOTJTUFOUMZ VQEBUFE JO CPUI 5IBJ BOE &OHMJTI RVBSUFSMZ BOBMZTU NFFUJOHT GPVS UJNFT JO SPBETIPXT BOE JOWFTUPS DPOGFSFODFT CPUI JO 5IBJMBOE BOE PWFSTFBT JODMVEJOH 4JOHBQPSF BOE )POH ,POH UISFF UJNFT JO BOE JOWFTUPS NFFUJOHT BOE DPOGFSFODF calls (67 times in 2013). In addition, the Company holds press conferences to update important events of the Company, in order to disseminate information to the public. 'VSUIFSNPSF UIF $PNQBOZ IBT $PNQBOZ 4FDSFUBSZ BOE *OWFTUPS 3FMBUJPOT %FQBSUNFOU UP GBDJMJUBUF JOUFSFTUFE JOWFTUPST and shareholders. Information can be requested by phone at 02-667-1469, by e-mail at ir@bumrungrad.com, or through UIF $PNQBOZkT XFCTJUF XXX CVNSVOHSBE DPN

5. Responsibilities of the Board of Directors Structure of the Board of Directors 5IF #PBSE PG %JSFDUPST JT DPNQSJTFE PG RVBMJÃ&#x2021;FE EJSFDUPST XJUI FYUFOTJWF FYQFSJFODF JO WBSJPVT Ã&#x2021;FMET &WFSZ EJSFDUPS QBSUJDJQBUFT JO TFUUJOH UIF $PNQBOZkT WJTJPO NJTTJPO TUSBUFHJFT HPBMT CVTJOFTT QMBOT BOE CVEHFUT 5IF #PBSE PG %JSFDUPST BMTP FOTVSFT UIBU UIF QMBOT BSF DBSSJFE PVU FÃ¨DJFOUMZ BOE FGGFDUJWFMZ CZ UIF NBOBHFNFOU UP FOTVSF UIF NBYJNJ[BUJPO PG UIF $PNQBOZkT WBMVF BOE TUBCJMJUZ UP TIBSFIPMEFST 5IF #PBSE PG %JSFDUPST NFFUT RVBSUFSMZ UP SFWJFX UIF NBOBHFNFOUkT SFQPSU PO UIF $PNQBOZkT PQFSBUJPOT %FUBJMT PG EVUJFT BOE SFTQPOTJCJMJUJFT PG UIF #PBSE PG %JSFDUPST DBO CF GPVOE JO 4FDUJPO 8.1 Management Structure. "T BU %FDFNCFS UIFSF BSF EJSFDUPST BT GPMMPXT /PO FYFDVUJWF EJSFDUPST 'PVS OPO FYFDVUJWF EJSFDUPST XIJDI BSF .S $IBJ 4PQIPOQBOJDI %S $IBOWJU 5BOQIJQIBU .% Mr. Chong Toh, and Dr. Suvarn Valaisathien &YFDVUJWF EJSFDUPST 5ISFF FYFDVUJWF EJSFDUPST JODMVEJOH .ST -JOEB -JTBIBQBOZB %S %IBOJU %IFBOEIBOPP .% BOE Dr. Sinn Anuras, MD. *OEFQFOEFOU EJSFDUPST 'PVS JOEFQFOEFOU EJSFDUPST XIP QPTTFTT UIF RVBMJÃ&#x2021;DBUJPOT BT TUJQVMBUFE CZ UIF 4FDVSJUJFT BOE &YDIBOHF $PNNJTTJPO DPNQSJTJOH .T 4PQIBWBEFF 6UUBNPCPM .S 4PSBEJT 7JOZBSBUO .S 1SJO $IJSBUIJWBU BOE .ST "SVOJ ,FUUSBUBE At present, the four independent directors account for 36% of total Board of Directors and more than one-third of the #PBSE PG %JSFDUPST BOE XJMM CF JO BDDPSEBODF XJUI UIF 4FDVSJUJFT BOE &YDIBOHF "DU /P # & Segregation of Duties: The Company clearly separates duties and responsibilities of the Board of Directors and management. 5IF #PBSE PG %JSFDUPST JT SFTQPOTJCMF GPS FOEPSTJOH TUSBUFHJFT BOE TVQFSWJTJOH NBOBHFNFOUkT PQFSBUJPOT BU UIF QPMJDZ MFWFM whereas management is responsible for managing the business as per such strategies. Therefore, the Chairman of the Board of Directors is not the same person as the Managing Director. 5IF $IBJSNBO PG UIF #PBSE JT OPU BO FYFDVUJWF EJSFDUPS BOE JT OPU JOWPMWFE JO NBOBHJOH UIF $PNQBOZ .BOBHFNFOU JT BTTJHOFE UIF SFTQPOTJCJMJUZ PG JNQMFNFOUJOH UIF CVTJOFTT QMBO BOE TUSBUFHJFT BOE DPOUSPMMJOH FYQFOTFT BOE JOWFTUNFOUT BT approved in the budget by the Board of Directors. Directorship Positions in other Listed Companies: 5IF $PNQBOZ SFBMJ[FT UIF WBMVF PG FYQFSJFODF UIBU EJSFDUPST SFDFJWF from being directors in other companies. The Company therefore has the policy that directors may hold board positions in not NPSF UIBO FJHIU DPNQBOJFT MJTUFE PO UIF 4UPDL &YDIBOHF PG 5IBJMBOE JO PSEFS GPS UIF EJSFDUPST UP CF BCMF UP BMMPDBUF TVÃ¨DJFOU UJNF GPS FBDI DPNQBOZ 8JUI SFHBSET UP UIF NBOBHFNFOU PUIFS UIBO CPBSE QPTJUJPOT BU UIF $PNQBOZkT TVCTJEJBSJFT BOE BÃ¨MJBUFE DPNQBOJFT UIF .BOBHJOH %JSFDUPS $PSQPSBUF $IJFG &YFDVUJWF 0Ã¨DFS BOE UIF $PNQBOZkT NBOBHFNFOU BSF BMMPXFE to hold director and/or independent director positions in not more than three other companies. In addition, such positions must be approved by the Board of Directors. Company Secretary: 5IF #PBSE PG %JSFDUPST BQQPJOUFE .S #BOQIPU ,JUUJLJOHMFSU BT UIF $PNQBOZ 4FDSFUBSZ UP CF SFTQPOTJCMF GPS BENJOJTUFSJOH UIF #PBSE PG %JSFDUPSTk NFFUJOHT BOE TIBSFIPMEFSTk NFFUJOHT GPS QSFQBSJOH NJOVUFT PG TVDI NFFUJOHT BOE BOOVBM SFQPSUT BOE GPS TBGFLFFQJOH EPDVNFOUT BT SFRVJSFE CZ SVMFT BOE SFHVMBUJPOT *O BEEJUJPO UIF $PNQBOZ 4FDSFUBSZ JT SFTQPOTJCMF for advising the Board of Directors and management regarding rules and regulations related to listed companies and corporate governance policies.

100

Committees 5IF #PBSE PG %JSFDUPST IBT TFU VQ DPNNJUUFFT UP BTTJTU XJUI TQFDJĂ&#x2021;D UBTLT BOE UP QSPQPTF BTTJHOFE JTTVFT UP UIF #PBSE PG %JSFDUPST GPS DPOTJEFSBUJPO PS BDLOPXMFEHFNFOU %FUBJMT PG DPNNJUUFF NFNCFST BOE UIFJS EVUJFT BOE SFTQPOTJCJMJUJFT BSF MJTUFE JO 4FDUJPO .BOBHFNFOU 4USVDUVSF 5IF $PNQBOZ IBT GPVS DPNNJUUFFT BT GPMMPXT "VEJU $PNNJUUFF JT SFTQPOTJCMF GPS SFWJFXJOH UIF Ă&#x2021;OBODJBM SFQPSUT JOUFSOBM DPOUSPM TZTUFN JOUFSOBM BVEJU TZTUFN BOE SJTL NBOBHFNFOU TZTUFN BOE GPS TFMFDUJOH BOE DPPSEJOBUJOH XJUI UIF $PNQBOZkT BVEJUPS 5IF "VEJU $PNNJUUFF DPOTJTUT PG three independent directors. In 2013, the Audit Committee held 4 meetings and reported their meeting results to the #PBSE PG %JSFDUPST %FUBJMT PG BUUFOEBODF PG "VEJU $PNNJUUFF NFNCFST BSF JO 4FDUJPO 3FNVOFSBUJPO PG %JSFDUPST Committees and Management. 2. Nomination and Remuneration Committee is responsible for selecting and proposing candidates for the positions of director and committee member to Board of Directors for approval, and for setting appropriate compensation. The Nomination and Remuneration Committee consists of one independent director, who is the chairman of the /PNJOBUJPO BOE 3FNVOFSBUJPO $PNNJUUFF BOE UXP OPO FYFDVUJWF EJSFDUPST *O UIF /PNJOBUJPO BOE 3FNVOFSBUJPO Committee held 1 meetings and reported their meeting results to the Board of Directors. Details of attendance of /PNJOBUJPO BOE 3FNVOFSBUJPO $PNNJUUFF NFNCFST BSF JO 4FDUJPO 3FNVOFSBUJPO PG %JSFDUPST $PNNJUUFFT and Management. (PWFSOJOH #PBSE PG #VNSVOHSBE *OUFSOBUJPOBM )PTQJUBM #BOHLPL JT SFTQPOTJCMF GPS JNQMFNFOUJOH UIF )PTQJUBM 1PMJDZ promoting patient safety and performance improvement, and providing quality patient care. The Governing Board DPOTJTUT PG UXP EJSFDUPST TFWFO NBOBHFNFOU BOE TJY QIZTJDJBOT *O UIF (PWFSOJOH #PBSE IFME NFFUJOHT *OWFTUNFOU $PNNJUUFF JT SFTQPOTJCMF GPS DPOTJEFSJOH JOWFTUNFOU QSPKFDUT CFGPSF QSPQPTJOH UP UIF #PBSE PG %JSFDUPST GPS BQQSPWBM 5IF *OWFTUNFOU $PNNJUUFF DPOTJTUT PG UISFF OPO FYFDVUJWF EJSFDUPST BOE UXP FYFDVUJWF EJSFDUPST *O the Investment Committee held 6 meetings. Roles, Duties and Responsibilities of the Board of Directors 5IF #PBSE PG %JSFDUPST IBT SFTQPOTJCJMJUJFT UPXBSET BMM TIBSFIPMEFST CPUI NBKPS BOE NJOPSJUZ TIBSFIPMEFST JO FOTVSJOH UIBU UIF $PNQBOZ DPOEVDUT JUT CVTJOFTT BOE JNQMFNFOUT DPSQPSBUF HPWFSOBODF QSBDUJDFT JO BDDPSEBODF XJUI JUT PCKFDUJWFT BOE QPMJDJFT GPS UIF IJHIFTU CFOFĂ&#x2021;U PG TIBSFIPMEFST XJUI DBSF BOE JOUFHSJUZ VOEFS CVTJOFTT FUIJDBM WBMVFT UBLJOH JOUP BDDPVOU UIF JOUFSFTUT PG BMM TUBLFIPMEFST BOE VOEFS MBXT BOE UIF BSUJDMFT PG BTTPDJBUJPO PG UIF $PNQBOZ 5IF EVUJFT BOE SFTQPOTJCJMJUJFT PG UIF #PBSE PG %JSFDUPST BSF JO 4FDUJPO .BOBHFNFOU 4USVDUVSF Internal control and internal audit systems: The Company has given importance to internal control and internal audit systems CZ FTUBCMJTIJOH BO JOUFSOBM BVEJU VOJU XJUI UIF QSJNBSZ PCKFDUJWF UP TVQQPSU BOE EFWFMPQ FGGFDUJWF JOUFSOBM DPOUSPM PG UIF PSHBOJ[BUJPO JO PSEFS UP NJOJNJ[F PQFSBUJPOBM SJTLT BOE UP FOTVSF RVBMJUZ PG UIF XPSL QSPDFTT BOE PQFSBUJPOT &NQIBTJT JT PO FGGFDUJWFOFTT BOE FĂ¨DJFODZ BQQSPQSJBUFOFTT PG FYQFOTFT BOE DPTUT BOE PQFSBUJPOT XIJDI BSF JO BDDPSEBODF XJUI the policy and/or requirements of the management. To ensure the independence of the internal audit unit and the balance of power, the internal audit unit reports directly to the Audit Committee. ConĂ&#x2C6;ict of interest: 5P QSFWFOU BOZ QSPCMFNT SFMBUFE UP DPOĂ&#x2C6;JDUT PG JOUFSFTU UIF #PBSE PG %JSFDUPST DPOTJEFST USBOTBDUJPOT XIJDI NBZ IBWF DPOĂ&#x2C6;JDUT PG JOUFSFTU PS XIJDI NBZ CF SFMBUFE QBSUJFT USBOTBDUJPOT XJUI DBVUJPO GBJSOFTT BOE USBOTQBSFODZ BOE TUSJDUMZ GPMMPXT UIF SVMFT BOE SFHVMBUJPOT PG UIF 4UPDL &YDIBOHF PG 5IBJMBOE BOE UIF 4FDVSJUJFT BOE &YDIBOHF Commission, with pricing and other conditions on an arms-length basis. Details of the transactions, including amount, DPOUSBDUJOH QBSUZ BOE SFBTPOT GPS FOUFSJOH JOUP UIF USBOTBDUJPOT BSF EJTDMPTFE JO Ă&#x2021;OBODJBM TUBUFNFOUT UIF BOOVBM SFQPSUT BOE UIF Ă&#x2021;MJOH Board of Directorsâ&#x20AC;&#x2122; Meetings *U JT UIF EVUZ PG FWFSZ EJSFDUPS UP BUUFOE #PBSE PG %JSFDUPSTk NFFUJOHT SFHVMBSMZ JO PSEFS UP BDLOPXMFEHF BOE NBLF decisions relating to the operations of the Company. The Board of Directors holds four regular meetings every year (held quarterly), PG XIJDI UIF TDIFEVMF JT TFU JO BEWBODF GPS UIF FOUJSF ZFBS BOE IPMET FYUSBPSEJOBSZ NFFUJOHT BT OFDFTTBSZ UP DPOTJEFS NBUUFST XIJDI BSF JNQPSUBOU BOE VSHFOU *O UIFSF XFSF #PBSE PG %JSFDUPSTk NFFUJOHT %FUBJMT PG UIF NFFUJOH BUUFOEBODF PG FBDI EJSFDUPS BSF JO UIF UBCMF JO 4FDUJPO 3FNVOFSBUJPO PG %JSFDUPST $PNNJUUFFT BOE .BOBHFNFOU 'PS FBDI NFFUJOH BHFOEB BSF DMFBSMZ TFU JO BEWBODF CZ UIF $IBJSNBO PG UIF #PBSE UPHFUIFS XJUI UIF .BOBHJOH Director. Moreover, each director is given opportunities to propose issues as agendas. The Company Secretary prepares and distributes invitation letters, agendas, and other supporting documents to the Board of Directors at least seven days in BEWBODF JO PSEFS UP BMMPX EJSFDUPST TVĂ¨DJFOU UJNF UP SFTFBSDI BOE TUVEZ UIF JOGPSNBUJPO QSJPS UP UIF NFFUJOH /PSNBMMZ FBDI NFFUJOH MBTUT UXP IPVST 'PS UIF DPOTJEFSBUJPO PG FBDI BHFOEB UIF $IBJSNBO PG UIF NFFUJOH BMMPDBUFT TVĂ¨DJFOU UJNF GPS NBOBHFNFOU UP QSFTFOU BEFRVBUF EFUBJMT PO UIF BHFOEB BOE GPS EJSFDUPST UP EJTDVTT UIF NBUUFS DBSFGVMMZ BOE HJWFT EJSFDUPST UIF PQQPSUVOJUZ UP FYQSFTT UIFJS PQJOJPOT JO UIF NFFUJOH JOEFQFOEFOUMZ 5IF NBKPSJUZ WPUF JT UIF QBTTJOH SFTPMVUJPO GPS FBDI BHFOEB XIFSF POF EJSFDUPS IBT POF WPUF *O DBTF BOZ EJSFDUPS IBT B QFSTPOBM DPOĂ&#x2C6;JDU PG JOUFSFTU TVDI EJSFDUPS XJMM leave the meeting and/or does not vote on that particular matter. If the voting result is equal, the Chairman of the meeting

101

Annual Report 2013

Bumrungrad Hospital Public Company Limited

DBTUT UIF EFDJEJOH WPUF *O BEEJUJPO TFOJPS NBOBHFNFOUT BSF JOWJUFE UP BUUFOE #PBSE PG %JSFDUPSTk NFFUJOHT UP QSPWJEF VTFGVM and important information, and to directly obtain business strategies from the Board of Directors to be implemented in the $PNQBOZkT PQFSBUJPOT Upon completion of each meeting, the Company Secretary is responsible for documenting and distributing minutes for BEPQUJPO BU UIF OFYU #PBSE PG %JSFDUPSTk NFFUJOH %JSFDUPST BSF BCMF UP DPNNFOU BNFOE BOE NBLF BEEJUJPOT TP UIBU UIF NJOVUFT BSF BT BDDVSBUF BT QPTTJCMF 5IF $PNQBOZ 4FDSFUBSZ LFFQT UIF BEPQUFE NJOVUFT XIJDI BSF TJHOFE CZ UIF $IBJSNBO PG UIF #PBSE PG %JSFDUPST CPUI JO UIF GPSN PG IBSE DPQJFT BOE FMFDUSPOJD Ă&#x2021;MFT BMPOH XJUI TVQQPSUJOH EPDVNFOUT BWBJMBCMF GPS EJSFDUPSTk BOE SFMFWBOU QFSTPOTk WFSJĂ&#x2021;DBUJPO BOE SFGFSFODF Remuneration of the Board of Directors and Management The Company provides appropriate remuneration for the Board of Directors and management. The remuneration of the #PBSE PG %JSFDUPST JO UIF GPSN PG BOOVBM SFNVOFSBUJPO BOE NFFUJOH SFNVOFSBUJPO IBT CFFO BQQSPWFE CZ TIBSFIPMEFSTk NFFUJOHT $POTJEFSBUJPO PG EJSFDUPSTk SFNVOFSBUJPO UBLFT JOUP BDDPVOU UIBU PG PUIFS DPNQBSBCMF MJTUFE DPNQBOJFT JO UIF TBNF industry. Committee members only receive remuneration in the form of meeting remuneration. .BOBHFNFOUkT SFNVOFSBUJPO JT JO UIF GPSN PG TBMBSJFT BOE CPOVTFT UBLJOH JOUP DPOTJEFSBUJPO UIF SFTQPOTJCJMJUJFT BOE QFSGPSNBODF of each person and performance of the Company. %FUBJMT PG SFNVOFSBUJPO PG FBDI JOEJWJEVBM EJSFDUPS XIJDI IBT CFFO BQQSPWFE CZ UIF TIBSFIPMEFSTk NFFUJOH BOE UIF TVN PG NBOBHFNFOUkT SFNVOFSBUJPO BSF EJTDMPTFE JO 4FDUJPO 3FNVOFSBUJPO PG %JSFDUPST $PNNJUUFFT BOE .BOBHFNFOU Development Programs for Directors and Management 5IF $PNQBOZ IBT B EJSFDUPSkT NBOVBM XIJDI TVNNBSJ[FT SFMBUFE MBXT SVMFT BOE SFHVMBUJPOT TP UIBU EJSFDUPST BSF JOGPSNFE PG UIFJS SPMFT SFTQPOTJCJMJUJFT BOE HVJEFMJOFT GPS UIF QPTJUJPO BT B EJSFDUPS 'PS OFXMZ BQQPJOUFE EJSFDUPST UIF $PNQBOZ JOGPSNT UIFN PG JOGPSNBUJPO XIJDI JT JNQPSUBOU GPS GVMĂ&#x2021;MMJOH UIF EVUJFT PG UIF $PNQBOZkT EJSFDUPST XIJDI JODMVEFT UIF $PNQBOZkT CBDLHSPVOE JOGPSNBUJPO CVTJOFTT TUSBUFHZ BOE EJSFDUPSkT NBOVBM Moreover, the Company supports development programs for directors and management in various forms, such as training BOE TFNJOBST PSHBOJ[FE CZ UIF 5IBJ *OTUJUVUF PG %JSFDUPST *0% UIF 4UPDL &YDIBOHF PG 5IBJMBOE BOE UIF 4FDVSJUJFT BOE &YDIBOHF $PNNJTTJPO " NBKPSJUZ PG UIF #PBSE PG %JSFDUPST EJSFDUPST IBWF QBTTFE *0% USBJOJOH DPVSTFT BT GPMMPXT Chairman Program

Mr. Chai Sophonpanich

.ST -JOEB -JTBIBQBOZB

Director CertiĂ&#x2021;cation Program (DCP)

Mr. Soradis Vinyaratn Mr. Prin Chirathivat Dr. Suvarn Walaisathien .ST "SVOJ ,FUUSBUBE

102

Audit Committee Program (ACP)

Role of the Compensation Committee (RCC)

Role of the Nomination and Governance Committee (RNG)

/ /

Mr. Chong Toh Ms. Sophavadee Uttamobol

Director Accreditation Program (DAP)

/ / / / / /

/ /

Annual Report 2013

Internal Control and Risk Management

103

Bumrungrad Hospital Public Company Limited

INTERNAL CONTROL AND RISK MANAGEMENT Bumrungrad Hospital Public Company Limited continuously values the internal control system, the internal audit system, and the risk management system. As a result, the Board of Directors has governed and assigned the Audit Committee to review and ensure appropriateness and effectiveness of the Companyâ&#x20AC;&#x2122;s systems, with realizing that the good systems can help mitigate business risks and PQFSBUJPOBM SJTLT UP UIF BDDFQUBCMF MFWFM BOE IFMQ EFUFDU FYJTUJOH EFÃ&#x2021;DJFODJFT JO B UJNFMZ NBOOFS *O BEEJUJPO UIFZ DBO IFMQ UIF $PNQBOZ UP HFOFSBUF BDDVSBUF BOE SFMJBCMF Ã&#x2021;OBODJBM SFQPSUT BOE IFMQ UIF $PNQBOZkT PQFSBUJPOT UP BDIJFWF JUT EFÃ&#x2021;OFE HPBMT

Part 1: Control Environment The Company set its vision, mission, and operating policy, with the emphasis on integrity and ethics by declaration of JOUFOU JO WJFX PG FTUBCMJTIJOH 5IBJMBOEkT 1SJWBUF 4FDUPS $PMMFDUJWF "DUJPO $PBMJUJPO BHBJOTU $PSSVQUJPO BOE DMFBSMZ EFÃ&#x2021;OFE CPUI TIPSU UFSN BOE MPOH UFSN CVTJOFTT HPBMT *U IBT BMTP SFXBSEFE FNQMPZFFT CBTFE PO UIFJS QFSGPSNBODF PO BDIJFWJOH UIPTF HPBMT *O BEEJUJPO UIF $PNQBOZ IBT UIF PSHBOJ[BUJPOBM TUSVDUVSF BOE XPSL QSPDFEVSFT UIBU IFMQ UJHIUFO JUT PQFSBUJPOT BOE QSFWFOU unauthorized asset use. Furthermore, the Companyâ&#x20AC;&#x2122;s executives continuously develop and improve the quality of management; SFTVMUJOH JO SFDPHOJUJPOT CZ TFWFSBM UIJSE QBSUZ PSHBOJ[BUJPOT FTQFDJBMMZ BT UIF "TJBkT Ã&#x2021;STU IPTQJUBM BDDSFEJUFE CZ UIF 64 CBTFE +PJOU $PNNJTTJPO *OUFSOBUJPOBM +$* JO BOE SF BDDSFEJUFE JO BOE BOE BT FWJEFODFE CZ UIF #FTU 1SBDUJDF 8PSLQMBDF "XBSE GPS -BCPS 3FMBUJPOT BOE -BCPS 8FMGBSF JO jUIF -BSHF &OUFSQSJTF XJUIPVU 'FEFSBUJPO PG -BCPS 6OJPOk DBUFHPSZ SFDFJWFE GSPN UIF 5IBJMBOEkT .JOJTUSZ PG -BCPS JO #BTFE VQPO UIF BGPSFNFOUJPOFE DIBSBDUFSJTUJDT JU JT deemed that the Company has a good organizational structure and environment, which is an essential foundation for an effective internal control system. 1BSU 3JTL "TTFTTNFOU The Company regularly assesses business risk factors, taking into account economic and political circumstances, competition, MBCPS NBSLFU BOE OBUVSBM EJTBTUFS XIJDI BSF FYUFSOBM GBDUPST *U BMTP BTTFTTFT JOUFSOBM GBDUPST FTQFDJBMMZ SJTL GBDUPST DPODFSOJOH NFEJDBM TFSWJDFT XIJDI NBZ MFBE UP MFHBM EJTQVUFT UIBU NBZ IBWF B TJHOJÃ&#x2021;DBOU JNQBDU UP UIF $PNQBOZ *O BEEJUJPO UIF $PNQBOZ IBT EFUFSNJOFE UIF SJTL NBOBHFNFOU BQQSPBDI GPS UIF QPTTJCMF Ã&#x2C6;PPEJOH CZ BTTJHOJOH UIF .BOBHFNFOU UP QSFQBSF UIF #VTJOFTT Continuity Plan, and has established the Hospital Administrative Policy on Safety and Environment Risk Assessment. Consequently, it is deemed that the Company has the effective risk management process that can mitigate business risks to the acceptable level. 1BSU $POUSPM "DUJWJUJFT 5IF $PNQBOZ IBT FTUBCMJTIFE USBOTBDUJPO BQQSPWBM BVUIPSJUZ BOE MJNJUT CBTFE PO UIF OBUVSF BOE BNPVOU PG USBOTBDUJPO *O DBTF PG DPOOFDUFE USBOTBDUJPOT PS QPUFOUJBM DPOÃ&#x2C6;JDU PG JOUFSFTU USBOTBDUJPOT UIF "VEJU $PNNJUUFF IBT B EVUZ UP SFWJFX UIF OFDFTTJUZ BOE SBUJPOBMF of those transactions, which must be approved by the Management, the Board of Directors, or the Shareholders as the case may be. 5IF QFSTPO XJUI DPOÃ&#x2C6;JDU PG JOUFSFTU JT OPU BMMPXFE UP WPUF JO UIFTF USBOTBDUJPOT .PSFPWFS UIF $PNQBOZ SFHVMBSMZ NPOJUPST TVCTJEJBSJFTk BOE BÃ¨MJBUFTk PQFSBUJPOT CZ EFMFHBUJOH UIF $PNQBOZkT EJSFDUPST PS NBOBHFNFOU UP UBLF B QPTJUJPO PG EJSFDUPST JO UIPTF TVCTJEJBSJFT PS BÃ¨MJBUFT *O UIF $PNQBOZ FOUFSFE JOUP BMM TVDI USBOTBDUJPOT XJUI SFMBUFE QFSTPOT PS QBSUJFT JO DPNQMJBODF XJUI UIF QSJODJQMFT procedures, and conditions stipulated in laws and regulations, under the good corporate governance policy, on an armâ&#x20AC;&#x2122;s length CBTJT BOE GPS JUT PXO IJHIFTU CFOFÃ&#x2021;UT 1BSU *OGPSNBUJPO BOE $PNNVOJDBUJPO 5IF $PNQBOZ IBT QFSGPSNFE Ã&#x2021;OBODJBM SFQPSUJOH JO BDDPSEBODF XJUI UIF BDDPVOUJOH QPMJDZ BT EFFNFE BQQSPQSJBUF GPS JUT OBUVSF PG CVTJOFTT BOE XJUI UIF (FOFSBMMZ "DDFQUFE "DDPVOUJOH 1SJODJQMFT (""1 *O BEEJUJPO UIF $PNQBOZ IBT JNQMFNFOUFE UIF *OUFSOBUJPOBM 'JOBODJBM 3FQPSUJOH 4UBOEBSET *'34 XIJDI XBT FGGFDUJWF JO UIF ZFBS CZ QSFQBSJOH EBUB BOE JOGPSNBUJPO TZTUFNT UP CF SFBEZ GPS UIPTF TUBOEBSET 5IF $PNQBOZ IBT BMTP FOHBHFE B DPOTVMUJOH Ã&#x2021;SN UP HJWF BEWJDF BOE QSPWJEF USBJOJOH TFTTJPOT GPS BMM SFMFWBOU FYFDVUJWFT BOE FNQMPZFFT .PSFPWFS UIF $PNQBOZ IBT QSPWJEFE OFDFTTBSZ BOE TVÃ¨DJFOU JOGPSNBUJPO GPS the Board of Directors to make a decision.

104

1BSU .POJUPSJOH "DUJWJUJFT 5IF $PNQBOZ TFU VQ UIF $PSQPSBUF *OUFSOBM "VEJU %JWJTJPO EJSFDUMZ SFQPSUJOH UP UIF "VEJU $PNNJUUFF UP FOTVSF JUT JOEFQFOEFODF )FBE PG XIJDI IBT EVUJFT BOE RVBMJÃ&#x2021;DBUJPOT XJUI UIF BVEJU PCKFDUJWFT UP BTTVSF UIBU n 0QFSBUJPOT JO WBSJPVT QSPDFTTFT BSF FÃ¨DJFOU BOE FGGFDUJWF FOPVHI UP BDIJFWF UIF $PNQBOZkT PCKFDUJWFT n 5IF Ã&#x2021;OBODJBM SFQPSUJOH QSPDFTT IBT BEFRVBUF BOE QSPQFS DPOUSPMT UP NBLF Ã&#x2021;OBODJBM EBUB SFMJBCMF n 5IF NBOBHFNFOU DPOUSPM QSPDFTT JT FGGFDUJWF FOPVHI UP HPWFSO BEIFSFODF UP MBXT BOE SFHVMBUJPOT BOE UIF $PNQBOZkT policies and procedures appropriately; n 5IF JOUFSOBM DPOUSPMT PWFS XPSL QSPDFTTFT QFSUBJOJOH UP QBUJFOUTk TBGFUZ BSF FGGFDUJWF BOE BEFRVBUF

*O BEEJUJPO UIF $PNQBOZ EFMFHBUFE UIF JOUFSOBM BVEJUPST UP JOWFTUJHBUF JNNFEJBUFMZ JO UIF DBTF PG TVTQFDUFE GSBVET QSBDUJDFT UIBU WJPMBUFE UIF MBXT BOE PUIFS JSSFHVMBS BDUJPOT XIJDI NBZ BGGFDU UIF SFQVUBUJPO BOE Ã&#x2021;OBODJBM QPTJUJPO PG UIF DPNQBOZ TJHOJÃ&#x2021;DBOUMZ and assigned responsible persons to determine ways to develop and improve work systems according to the internal auditorsâ&#x20AC;&#x2122; recommendations, and the independent auditorâ&#x20AC;&#x2122;s recommendations in the Management Letter.

105

Annual Report 2013

106

Bumrungrad Hospital Public Company Limited

Annual Report 2013

Related Transaction Party

107

108

Bangkok Insurance PCL. (BKI)

Related Company

Related Transaction Party Description

Borrowing of Money - The Company issued and offered 100,000 units of the Debentures of Bumrungrad Hospital Public Company Limited No.1/2011 Series 1 Due B.E. 2016 with the par value of Baht 1,000 each and interest rate of 4.13% and 100,000 units of the Debentures of Bumrungrad Hospital Public Company Limited No.1/2011 Series 2 Due B.E. 2018 with the par value of Baht 1,000 each and interest rate of 4.59% to BKI.

Common director, and BKI was the Revenues major shareholder of the Company, - Revenues from hospital services with 14.62% shareholding as at 31 received from BKI December 2013 (14.62% as at 31 December 2012) Expenses - Insurance fees which the Company and subsidiaries paid to BKI

Relationship

200.0

31.6

31.7

200.0

12.1

12.4

Amount (Baht Million) For the year For the year ended ended 2013 2012

Reason for the Transaction

The price per unit including interest rate of debentures offered to BKI was the same price that the Company offers to other third-party subscribers.

The Audit Committee has the opinion that the transaction was reasonable and it was approved by the Board of Directors and the Shareholders.

BKI was the insurance provider which The Audit Committee has the the Company and subsidiaries have opinion that the transaction always used. In addition, the insurance was reasonable. premium that the Company and subsidiaries paid to BKI was at the rate which BKI offers to its customers in general.

It was the Companyâ&#x20AC;&#x2122;s normal course The Audit Committee has the of business, charging at normal price opinion that the transaction BOE CFOFĂ&#x2021;UT BT DVTUPNFST JO HFOFSBM was reasonable.

Pricing Policy

Bumrungrad Hospital Public Company Limited

109

Relationship

Bangkok Life Assurance PCL. (BLA) Common director

Related Company

Interest Payment - Interest payment for 755,000 units of the Debentures of Bumrungrad Hospital Public Company Limited No.1/2011 Series 3 Due B.E. 2021 with the par value of Baht 1,000 each and interest rate of 4.97%. Revenues - Revenues from hospital services received from BBL

Interest Payment - Interest payment for 100,000 units of the Debentures of Bumrungrad Hospital Public Company Limited No.1/2011, Series 1 Due B.E. 2016 with the par value of Baht 1,000 each and interest rate of 4.13% and 100,000 units of the Debentures of Bumrungrad Hospital Public Company Limited No.1/2011, Series 2 Due B.E. 2018 with the par value of Baht 1,000 each and interest rate of 4.59%. Borrowing of Money - The Company issued and offered 755,000 units of the Debentures of Bumrungrad Hospital Public Company Limited No.1/2011 Series 3 Due B.E. 2021 with the par value of Baht 1,000 each and interest rate of 4.97%.

Description

37.6

20.0

13.7

755.0

8.8

37.5

755.0

8.7

Amount (Baht Million) For the year For the year ended ended 2013 2012

The Audit Committee has the opinion that the transaction was reasonable and it was approved by the Board of Directors and the Shareholders.

Reason for the Transaction

Annual Report 2013

The Interest rate: 4.97% per annual

The price per unit including interest rate of debentures offered to BKI was the same price that the Company offers to other third-party subscribers.

The Interest rate: 4.13 â&#x20AC;&#x201C; 4.59% per annual

Pricing Policy

110

Common director

%BNSPOHUIBN -BX 0Ă¨DF

Civilian Co., Ltd.

Relationship

Bangkok Bank PCL. (BBL)

Related Company

Expenses - Consulting fees on legal paid to Civilian Co., Ltd.

Expenses - Consulting fees on legal paid to %BNSPOHUIBN -BX 0Ă¨DF

10.0

32.5

102.6

Expenses - Bank credit cards commission fees paid to BBL

- Interest on convertible bonds paid to BBL

30.4

Revenues - Revenues from hospital services received from BBL

Description

0.7

6.4

32.5

92.8

24.8

Amount (Baht Million) For the year For the year ended ended 2013 2012

Reason for the Transaction

5IF $PNQBOZ QBJE IPVSMZ Ă&#x2021;YFE FYQFOTFT UP %BNSPOHUIBN -BX 0Ă¨DF The expenses paid to Damrongtham -BX 0Ă¨DF BSF BU UIF SBUF XIJDI %BNSPOHUIBN -BX 0Ă¨DF PGGFST UP its customers in general. 5IF $PNQBOZ QBJE IPVSMZ Ă&#x2021;YFE expenses at the normal rate which Civilian Co., Ltd., charges to its customers in general.

BBL was the credit card service provider which the Company has always used. The Company invested in various infrastructures to maximize UIF CFOFĂ&#x2021;UT GSPN FĂ¨DJFOU VTF PG DSFEJU card payment system. The fees paid to BBL are at the market rate. The Company paid interest on Baht 550 million principal of convertible bonds. Interest rates are in accordance with debt restructuring agreement.

The Audit Committee has the opinion that the transaction was normal course of business. Bumrungrad International Limited (BIL)

The Audit Committee has the opinion that the transaction was reasonable.

The Audit Committee has the opinion that the transaction was reasonable and it was approved by the Shareholders.

The Audit Committee has the opinion that the transaction was reasonable.

Pricing Policy

Bumrungrad Hospital Public Company Limited

111

Relationship

Description

Common director

The Bumrungrad Hospital Foundation (BHF)

AA Talent Recruitment Co., Ltd.

24.0

Expenses - Donation

0.4

0.9

- Other revenue from resources used

Expenses - Service Fee for personnel recruitment services

23.3

0.6

24.0

0.8

21.7

15.7

2.9

1.9

0.5

Revenues - Revenues from hospital services received from BHF

Interest Payment - Interest paid on long-term loan of 176.4 million baht.

Bumrungrad International Limited (BIL) Associated company, in which the Revenues Company, at 31 December 2013, - Consulting fee income on hospital has 31.5% shareholding management received from BIL (31 December 2012: 31.5%) and has common directors Expenses - Consulting fees on hospital management paid to BIL

Related Company

Amount (Baht Million) For the year For the year ended ended 2013 2012

Reason for the Transaction

The Audit Committee has the opinion that the transaction was reasonable.

Annual Report 2013

The Company paid the donation The Audit Committee has the expenses according to the policy opinion that the transaction approved by the Board of Directors. was normal course of business and it was approved by the Board of Directors.

The Company charges the expens- The Audit Committee has the es in relation to the actual cost of opinion that the transaction the resources used. was normal course of business.

The loans carry interest at the 1-year The Audit Committee has the Ă&#x2021;YFE EFQPTJU SBUF PG POF PG MPDBM opinion that the transaction commercial banks, and are due at call was normal course of business.

5IF $PNQBOZ QBJE IPVSMZ Ă&#x2021;YFE expenses to BIL. The expenses paid to BIL are at the rate which BIL offers to its customers in general.

The Company charges the fees in The Audit Committee has the relation to the actual cost of the opinion that the transaction resources used. was reasonable.

Pricing Policy

112

National Healthcare Systems Co., Ltd. (NHS)

A.N.B. Laboratories (Amnuay pharmacy) Co., Ltd. (ANB)

Subsidiary company of a major Expenses shareholder (Bangkok Dusit Medical - Laboratory Services Services PCL. or BDMS)

Expenses - Medicine

Expenses - Radiopharmaceutics

BDMS was the major shareholder of the Company, with 23.88% shareholding as at 31 December 2013 (31 December 2012: 23.88%) Subsidiary company of a major shareholder (Bangkok Dusit Medical Services PCL. or BDMS)

Bangkok Dusit Medical Services PCL. (BDMS)

Description

Director of TM Design Co., Ltd. is Expenses a spouse of a daughter of Chair- - Consultant fees for construction projects person of the Board of Directors

Relationship

TM Design Co., Ltd.

Related Company

2.5

2.1

9.4

1.2

2.0

1.9

8.6

Amount (Baht Million) For the year For the year ended ended 2013 2012

The Audit Committee has the opinion that the transaction was normal course of business.

Reason for the Transaction

The Company paid expenses at OPSNBM QSJDF BOE CFOFĂ&#x2021;UT XIJDI TM Design Co., Ltd. charges from its customers in general.

Pricing Policy

Bumrungrad Hospital Public Company Limited

Annual Report 2013

Corporate Social Responsibilities

113

Bumrungrad Hospital Public Company Limited

CSR INFORMATION DISCLOSURES ACCORDING TO FORM 56-1 The Company has established a clear corporate social responsibility framework according to the aforementioned guiding principles 9 and 10 (page 70). Mr. Mack Banner, Bumrungrad Hospital CEO, announced the Companyâ&#x20AC;&#x2122;s corporate social responsibility guidelines in September 2009. â&#x20AC;&#x153;Throughout its long history, Bumrungrad has been joined by its doctors and staff in a number of social and environmental QSPKFDUT 8F EFWPUF UJNF NFEJDBUJPOT NFEJDBM FRVJQNFOU UPHFUIFS XJUI Ă&#x2021;OBODJBM TVQQPSU UISPVHI UIF #VNSVOHSBE )PTQJUBM 'PVOEBUJPO UP FMFWBUF UIF IFBMUI BOE XFMM CFJOH PG VOEFSQSJWJMFHFE QFPQMF 0VS TPDJBM BDUJWJUJFT SFĂ&#x2C6;FDU PVS HVJEJOH QSJODJQMFT JODMVEJOH FBSOJOH customersâ&#x20AC;&#x2122; satisfaction, promoting human resource development, and operating a business that is responsible to society and the environment and with a commitment to good corporate citizenship.â&#x20AC;? To ensure its social responsibility vision is put into practice, the Company in 2011 established a Corporate Social Responsibility DPNNJUUFF UP EFĂ&#x2021;OF UIF QPMJDZ DSFBUF PQFSBUJPOBM HVJEFMJOFT GPS VOEFSUBLJOH TPDJBM BDUJWJUJFT BOE GBDJMJUBUF UIF $PNQBOZkT TPDJBM SFTQPOTJCJMJUZ QSPKFDUT JO DPPQFSBUJPO XJUI UIF #VNSVOHSBE )PTQJUBM 'PVOEBUJPO BOE PUIFS QIJMBOUISPQJD PSHBOJ[BUJPOT BUSINESS ETHICS 5IF $PNQBOZkT IPTQJUBM NBOBHFNFOU QPMJDZ BQQMJFT UP B XJEF SBOHF PG GVODUJPOBM BSFBT JODMVEJOH Ă&#x2021;OBODF BOE NBUFSJBMT QVSDIBTJOH Rules and regulations are implemented to ensure that the acquisition of equipment, supplies and services comply with the Companyâ&#x20AC;&#x2122;s Ethical Code of Conduct. The hospitalâ&#x20AC;&#x2122;s contract center has responsibility for ensuring that all business contracts are issued fairly, are negotiable by all contracting parties and are legally valid. Through its Quality Control and Satisfaction Assessment policy, the Company follows clear operational guidelines for evaluating general and medical services for the best interests of the Companyâ&#x20AC;&#x2122;s stakeholders. Details on the Companyâ&#x20AC;&#x2122;s commitment to following the Principles of Good Corporate Governance can be found in the section of this report beginning on Page 97. ANTI-CORRUPTION The Company has been a member of the Anti-Corruption Network since November 9, 2010 and the Company remains fully committed to following the Principles of Good Corporate Governance as outlined in the section of this report which begins on Page 97. RESPECT FOR HUMAN RIGHTS The Companyâ&#x20AC;&#x2122;s commitment to equality without discrimination is outlined in Section 1 of the Hospital Administrative Policy on Equality. The policy provides that employees, patients and customers are entitled to fair treatment without discrimination because of race, age, gender, religion, professional standing, health status, economic or social class status. In addition, regarding the Patientâ&#x20AC;&#x2122;s Rights and Responsibilities, the Company addresses the patientsâ&#x20AC;&#x2122; rights as part of quality control relating to patient care. The Patientâ&#x20AC;&#x2122;s Rights has been announced publicly, both in the service areas at the hospital and through selected media to ensure proper awareness. With more than a million international patients traveling from more than 190 countries worldwide, the Companyâ&#x20AC;&#x2122;s employees follow guidelines to ensure patients are informed of their rights and responsibilities in a polite and appropriate manner. FAIR LABOR PRACTICE The Companyâ&#x20AC;&#x2122;s guidelines on labor practices are included in Section 6 of the Hospital Administrative Policy covering Human Resources Development and Training. Policy details cover areas regarding recruitment and hiring of employees, employee welfare and remuneration guidelines, awards and recognition, transfers and promotions, annual performance evaluations, and termination of employment. The Company complies with all applicable labor laws, including Labour Protection Act (3) B.E. 2551 (2008); Workers Compensation Act B.E. 2537 (1994); Regulation of the Department of Public Welfare on Reporting of Dangerous Occurrence, Disease or Disappearance BOE $MBJNJOH PG $PNQFOTBUJPO PG UIF 8PSLFST $PNQFOTBUJPO 'VOE "DU # & .JOJTUFSJBM 3FHVMBUJPO PO UIF 1SFTDSJCJOH PG $SJUFSJB BOE .FUIPE PG $POEVDUJOH )FBMUI $IFDL VQ PG &NQMPZFFT BOE 'PSXBSEJOH UIF 3FTVMUT PG )FBMUI $IFDL 6Q UP -BCPVS Inspector B.E. 2547 (2004); and Ministerial Regulations Concerning the Provision of Labour Welfare in Workplace B.E. 2548 (2005). 5IF $PNQBOZ IBT CFFO BXBSEFE l#FTU 1SBDUJDF 8PSLQMBDFm EFTJHOBUJPO JO UIF l-BSHF &OUFSQSJTF XJUIPVU 'FEFSBUJPO PG -BCPS 6OJPOm DBUFHPSZ CZ 5IBJMBOEkT .JOJTUSZ PG -BCPVS GPS Ă&#x2021;WF DPOTFDVUJWF ZFBST CFHJOOJOH JO RESPONSIBILITIES TO CONSUMERS Exceeding customer expectations has been the Companyâ&#x20AC;&#x2122;s top priority. The Companyâ&#x20AC;&#x2122;s guidelines on patient service are outlined JO 4FDUJPO PG UIF )PTQJUBM .BOBHFNFOU 1PMJDZ 1BUJFOUT XIP BSF EJSFDU DPOTVNFST BSF HSPVQFE JOUP POF PG UXP DBUFHPSJFT 5IF Ă&#x2021;STU category, which considers the patientâ&#x20AC;&#x2122;s nationality, comprises three sub-categories â&#x20AC;&#x201C; Thais, expatriates and foreign patients. The second category focuses on the basis of service and comprises out-patient and in-patient sub-categories. The Company emphasizes delivery of quality service that is appropriate and of the highest standard. The hospital participates in a number of programs to audit and monitor adherence to hospital-related regulations and standards and to ensure continous service improvement. These programs include Hospital Standards on Patient-centered Quality Improvement Golden Jubilee Edition B.E. 2537 )FBMUI 4ZTUFNT 3FTFBSDI *OTUJUVUF UIF *OTUJUVUF GPS )FBMUI BOE $POTVNFS 1SPUFDUJPO BOE UIF /BUJPOBM 1VCMJD )FBMUI 'PVOEBUJPO

114

ENVIRONMENTAL CARE The Companyâ&#x20AC;&#x2122;s policy on Environmental Management is detailed in Section 7 of the Hospital Administrative Policy. It contains guidelines for energy conservation, management and conservation of water supply, minimizing pollution and environmental impact within the hospital, compliance with environmental procedures and legal requirements, safety of construction and renovation sites, and evaluation of safety and environmental risk. The Companyâ&#x20AC;&#x2122;s environmental management complies with government rules and regulations, including Ministerial Regulations on Infectious Waste Disposal B.E. 2545 (2002) of the Division of Environmental Engineering; Bureau of Environmental Health of the Department of Health at Thailandâ&#x20AC;&#x2122;s Ministry of Public Health; the BMAâ&#x20AC;&#x2122;s Code on Sewage and Solid Waste Collection, Transport and Disposal B.E. 2544 (2001) published in the Royal Thai Government Gazette dated March 11, 2002; the Promotion of Environmental 2VBMJUZ "DU # & /PUJĂ&#x2021;DBUJPO PG UIF .JOJTUSZ PG /BUVSBM 3FTPVSDFT BOE UIF &OWJSPONFOU SFHBSEJOH MJNJUJOH UIF JNQBDU of building and construction on public water resources and the environment; the Vienna Convention on the Protection of the Ozone Layer; and the Montreal Protocol on reducing consumption of ozone-depleting substances. COMMUNITY AND SOCIAL RESPONSIBILITY The Company has initiated a number of social responsibility projects during the past year comprising health promotion and health education activities. Health Promotion 1. Rak Jai Thai n 5IF QSPKFDU XBT MBVODIFE JO BOE JT PQFSBUFE CZ UIF #VNSVOHSBE )PTQJUBM 'PVOEBUJPO 5IF QSPHSBN QSPWJEFT GSFF heart surgeries for needy Thai children and adults suffering from congenital heart defects and valvular heart disease XIP MBDL UIF Ă&#x2021;OBODJBM NFBOT PS BDDFTT UP NVDI OFFEFE TVSHJDBM USFBUNFOUT " UZQJDBM TVSHFSZ DBO DPTU BSPVOE 500,000 baht per patient. The program provided no-cost surgeries for over 650 underprivileged Thais through 2012. In 2013, the program extended help beyond Thailand. The project provided treatment for six underprivileged children from Myanmar suffering from congenital heart disease. The children were treated, at no cost, at Bumrungrad International Hospital in Bangkok in December 2012. The project is an ongoing effort to honor His Royal Majesty the King of Thailand on the occasion of his birthday on December 5, 2012, to celebrate the 65-year diplomatic relationship CFUXFFO 5IBJMBOE BOE UIF 3FQVCMJD PG UIF 6OJPO PG .ZBONBS BOE UP QSPWJEF NFEJDBM BTTJTUBODF BOE QSPNPUF knowledge sharing between the two countries.

6QDPVOUSZ .PCJMF $MJOJD .JTTJPO n " UFBN PG NFEJDBM WPMVOUFFST GSPN #VNSVOHSBE *OUFSOBUJPOBM )PTQJUBM KPJO .S $IBJ 4PQIPOQBOJDI $IBJSNBO UPHFUIFS with staff from Bangkok Insurance Pcl. to provide free treatment on each year to nearly 1,000 villagers residing in Mukdahan and Sakon Nakorn provinces in northeast Thailand. In addition, a handicraft training project in the village of Nong Kong, Mukdahan province, was established to provide a source of supplementary income to many underprivileged people. n " NPCJMF DMJOJD XBT TFU VQ BU UIF )VBZ 4BQBO 5FNQMF 4DIPPM /POH 3POH TVC EJTUSJDU 1IBOPN 5VBO EJTUSJDU Kanchanaburi province, to provide no-cost medical treatment for underprivileged area residents. 3. Thomson Mobile Clinic in Bangkok n 5IF QSPKFDU IBT CFFO TQPOTPSFE CZ UIF 5IPNTPO 'VOE BOE TVQQPSUFE CZ UIF #VNSVOHSBE )PTQJUBM 'PVOEBUJPO BOE the Company since 2001 and provides daily free healthcare to residents of 40 underprivileged communities in Bangkok. In 2013, the Thomson Mobile Clinic project provided medical care to more than 20,000 patients and donated over 6,000 5-kg packages of rice.

115

Annual Report 2013

5IF IPTQJUBM IBT BMTP SFDFJWFE )" DFSUJĂ&#x2021;DBUJPO BT XFMM BT )PTQJUBM MFWFM *OUFHSBUFE 0WFSWJFX # & GSPN UIF *OTUJUVUF of Hospital Quality Improvement and Accreditation, Hospital and Health Care Standard (60th Anniversary Celebrations of His Majestyâ&#x20AC;&#x2122;s Accession to the Throne Edition); Joint Commission International (JCI); the International Organization for Standardizationâ&#x20AC;&#x2122;s ISO 15189 : Medical Laboratories â&#x20AC;&#x201C; Particular requirements for Quality and Competence; Thai Industrial Standards (TIS 2276 â&#x20AC;&#x201C; 2549), Security Requirements for Medical Laboratories; Approaches on In-patient Hospital Service Quality Evaluation [2nd Revision and Amendment Edition B.E. 2552 (2009)] by the Bureau of Sanatorium Group, Division of Medical Practice, Healthcare Service Promotion Department; BOE .FEJDBM -BCPSBUPSZ 2VBMJUZ "TTVSBODF DFSUJĂ&#x2021;DBUJPO GPS QSPWJEJOH IFBMUI DIFDL VQT GPS DBOEJEBUFT TFFLJOH PWFSTFBT FNQMPZNFOU The hospitalâ&#x20AC;&#x2122;s standards and regulations for customer service cover the periods before, during and after patients utilize hospital services. The Company actively solicits customer feedback and uses such feedback in its continous efforts to further improve patient service using a PDCA (Plan, Do, Check, Act) approach.

Bumrungrad Hospital Public Company Limited

Health Education The Companyâ&#x20AC;&#x2122;s CSR efforts have consistently emphasized health education for communities through a variety of programs and activities, including public health seminars, public health events, nurse aide training programs, school health education activities and health education materials, including Better Health magazine, health care booklets, health blog, newspaper and magazine articles.

Other Social Support Projects n The Childrenâ&#x20AC;&#x2122;s Home, Father Ray Foundation in Pattaya visit Hospital management and staff visited to donate medications, DMFBOJOH TVQQMJFT QFSTPOBM IZHJFOF JUFNT BOE Ă&#x2021;OBODJBM TVQQPSU UPHFUIFS XJUI MVODI USFBUT GPS DIJMESFO 5IF DIJMESFO BMTP UPPL QBSU in a seminar on personal hygienic care led by hospital volunteers. n â&#x20AC;&#x153;Rak Talay Thaiâ&#x20AC;? (Conserve the Thai Sea) project Activites include the planting of mangroves, the releasing of sea turtles CBDL JOUP UIF PDFBO DSFBUJOH Ă&#x2021;TI JOIBCJUBOUT BOE NBLJOH &. NVECBMMT UP EFDPOUBNJOBUF XBUFS TVQQMJFT .FEJDBUJPOT and healthcare products were also donated to support the construction of a sea turtle hospital in Chonburi province under HM The King Honour Celebration project at the Sea Turtles Conservation Center of the Royal Thai Navy. n lRuam Rang Ruam Jaiâ&#x20AC;? with Bhappy 3 charity program A variety of social and environment activities throughout the year were jointly organized by Bangkok Insurance Pcl, Bangkok Life Assurance, and Bumrungrad International Hospital, including â&#x20AC;&#x153;Ruam Rang Ruam Jaiâ&#x20AC;? (Join the Workforce and Spirit) with Bhappy 3, â&#x20AC;&#x153;Paint the Dream, Share the Smileâ&#x20AC;? for children of the Pracha Kositaram Temple School in Samut Songkram province. n CSR Club of the Thai Listed Companies Association The Company serves as a Committee and provided donations of medicines and household products to Mab Pra Chan Temple School (Ratbumrung Pracha Witaya) located in Nongpling sub-district, Nakorn-Luang district, Ayuttaya province. Activities were part of a concerted effort to provide much-needed relief to BSFB TDIPPMT IBSE IJU CZ TFWFSF Ă&#x2C6;PPEJOH n Activities celebrating the 33rd anniversary of the Companyâ&#x20AC;&#x2122;s establishment The Company celebrated its 33-year anniversary by sponsoring a health promotion event in Bangkokâ&#x20AC;&#x2122;s Makkasan community, in conjunction with the Royal Merit Offering for H.M. the King on the occasion of his birthday anniversary on December 5, 2013. The event included the presentation PG EPOBUFE IPVTFIPME NFEJDJOF LJUT UP SFQSFTFOUBUJWFT GSPN UIF 3BKBUIFXJ %JTUSJDU 0Ă¨DF BU UIF 1SF TDIPPM $IJMESFO %FWFMPQNFOU $FOUFS JO 3BKBUIFXJ EJTUSJDU 5IF EBZkT PUIFS BDUJWJUJFT JODMVEFE GSFF JOĂ&#x2C6;VFO[B WBDDJOBUJPOT GPS DIJMESFO BOE UFBDIFST MVODIFPO treats, recreational activities, health care seminars, blood pressure checks, tree pruning and clean-up of the area with the help of volunteers. n Fire victimsâ&#x20AC;&#x2122; relief for the Romklao community, Klongtoey district *O SFTQPOTF UP UIF 0DUPCFS Ă&#x2021;SF UIBU DBVTFE widespread damage to Bangkokâ&#x20AC;&#x2122;s Romklao community, the Company joined together with the Bumrungrad Hospital 'PVOEBUJPO BOE UIF 5IPNTPO 'VOE UP EPOBUF LH CBHT PG SJDF BOE IPVTFIPME NFEJDBUJPO LJUT UP SFTJEFOUT BGGFDUFE CZ UIF Ă&#x2021;SF n Fire victimsâ&#x20AC;&#x2122; relief in Nomklao community 'PMMPXJOH B NBKPS Ă&#x2021;SF UIBU DBVTFE TJHOJĂ&#x2021;DBOU EBNBHF UP UIF DPNNVOJUZ OFBS Ramkhamhaeng 39 in Bangkokâ&#x20AC;&#x2122;s Wangtonglang district, a joint relief effort co-organized by the Company, the Bumrungrad )PTQJUBM 'PVOEBUJPO BOE UIF 5IPNTPO 'VOE EPOBUFE LH CBHT PG SJDF BOE IPVTFIPME NFEJDBUJPO LJUT UP SFTJEFOUT BGGFDUFE CZ UIF Ă&#x2021;SF n â&#x20AC;&#x153;Hai Hua Jai Num Tang 3â&#x20AC;? (Let the Heart Lead the Way 3) A charity concert was organized to raise funds for the Rak Jai Thai project, which provides no-cost heart surgeries for underprivileged children with congenital heart disease. The concert included QFSGPSNBODFT CZ .S $IBJ 4PQIPOQBOJDI $IBJSNBO BOE 'PVOEFS PG UIF #VNSVOHSBE )PTQJUBM 'PVOEBUJPO EPDUPST BOE NFEJDBM personnel from the hospital, led by Kru Rodj (Rungroj Dullapan), The Professional by Kru Rodj, and a group of former students including Bumrungradâ&#x20AC;&#x2122;s Dr. Nopawan Kittiwat.

In 2013, the Company received an award from the American Chamber of Commerce (AMCHAM) in recognition of the Companyâ&#x20AC;&#x2122;s Corporate Social Responsibility programs. The award cited a number of Bumrungrad initiatives, including its program that provides no-cost heart surgeries for underprivileged children, as models for how businesses can contribute to the community. In addition, the Company is a founding member and serves as Committee of the CSR Club of the Thai Listed Companies Association; the Club was founded with the mission of helping listed companies strengthen their CSR capabilities through a coordinated CSR network. 'PS NPSF EFUBJMT PG UIF $PNQBOZkT JOGPSNBUJPO QMFBTF SFGFS UP UIF Ă&#x2021;MJOH SFQPSU PG UIF $PNQBOZ SFQPSU BU www.sec.co.th or www.bumrungrad.com/investor

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Bumrungrad Hospital Public Company Limited

33 Sukhumvit 3, Bangkok 10110, Thailand Tel : +66 (0) 2667 1000 Fax : +66 (0) 2667 2525 E-mail : ir@bumrungrad.com www.bumrungrad.com