Page 29 - KPJ_2011

Dear Shareholders,
At KPJ Healthcare Berhad (KPJ) the dynamic
partnerships and shared vision to build a healthier
community has enabled us to touch the lives of many over
the past three decades, since the first KPJ hospital was
established in 1981.
For three long decades, KPJ has provided compassionate
care to patients and today, we remain steadfast in our
objective to Care for Life and to increase shareholder
value by providing quality healthcare services through
continuous improvement in patient care and outcomes.
The unceasing efforts have translated into a growing list of
achievements, ranging from realization of financial goals to
enhancedpatient careprogrammes, andquality certifications
towards higher clinical standards and patient safety.
KPJ’s robust growth demonstrates our ability to capitalize
on new opportunities through continuous physical growth
and expansion, prioritizing human capital and transforming
through innovation.
We are therefore pleased to share with you KPJ Group’s
key developments, the remarkable results scored for the
financial year ended 31 December 2011 and how KPJ
plans to further strengthen the system in order to create
sustainable value for all stakeholders.
Delivering Outstanding Results
Throughout the year, we focused on making a bigger
difference to those whose lives we touch by enhancing
engagement and serving with genuine dedication.
Despite challenges of heightened competition amidst
healthcare sector liberalization and uncertainty in global
financial markets, KPJ brought home to shareholders the
highest ever earnings performance and bagged a number
of awards in fiscal 2011.
Financial Performance
During the year 2011, revenue growth outpaced costs with
a double-digit 15.3% expansion to RM1.91 billion as a
result of organic growth and acquisitions, translating into its
best performance yet in 30 years, while profit before zakat
and tax surged 21.8% year-on-year to RM204.60 million.
KPJ also scored a 20.8% rise in net profit attributable to
shareholders to RM143.67 million in fiscal 2011 while its
liquidity position remained strong with a cash balance of
RM252.08 million.
The Malaysian operations continued to dominate,
accounting for 90% of the Group’s income for the year, with
revenue rising 12.1% on-year to RM1.72 billion in financial
year 2011 as all KPJ hospitals in the country continued to
record positive earnings growth amid capacity expansion
and new services.
Newer hospitals also performed well during the year and
contributed to the improved Group earnings for fiscal 2011.
Revenue contributions from supporting services such as
marketing and distribution of pharmaceutical, medical and
surgical products, and pathology and laboratory services
also showed marked improvement with a 31.1% increase
to RM636.03 million.
For financial year ended 31 December 2011, KPJ
continued to create positive Economic Value Added (EVA)
of RM77.84 million, an increase of RM9.19 million or 13.4%
over the RM68.65 million created in 2010.
Healthy Dividends
In concluding fiscal 2011, we are pleased to be able to
declare a fourth interim dividend of 4.7 sen per share of
RM0.50 each, bringing the year’s total dividends to 12.1
sen per share.
Investor Relations
Significant emphasis was placed on corporate disclosure
as KPJ continued to enhance engagement with the
investing community and build investors’ confidence
through transparency and accountability to shareholders.
This has also helped put KPJ under the coverage of more
research houses.
During the year, the management and investor relations
team met with analysts and fund managers from more
than 40 investment and stockbroking companies and
participated in some 20 roadshows and international
conferences as a platform for open discussion with over
100 different fund managers.
Each year, we communicate our ideas and hold healthy
discussions with our shareholders on the Group’s
developments during the Annual General Meeting and on
other occasions, dialogues are also held with shareholders
and others such as the Minority Shareholders Watchdog
Group (MSWG).
The Group also ensures timely and equitable dissemination
of information to all stakeholders through public
announcements and the website in accordance with good
disclosure practices.
Share Price Performance
Indeed, 2011 was a historic year in many ways.
KPJ wrapped up its third decade in the healthcare business
with both financial and business growth, accompanied by
a number of noteworthy accolades.
A major milestone was KPJ’s remarkable performance on
the Malaysian stock exchange, Bursa Malaysia, which
translated into significant returns to shareholders.
KPJ shares opened at RM3.72 on 3 January 2011 and
continued to climb over the subsequent eight months to its
highest level at the time at RM4.69.
Statement to Shareholders
ANNUAL REPORT 2011 24