KPJ Healthcare Berhad - Annual Report 2018

16 KPJ HEALTHCARE BERHAD FINANCIAL CAPITAL HOW WE CREATE VALUE Our Financial Capital is the pool of funds available to KPJ, as sustained by other capitals. The components of our Financial Capital are the revenue generated from our operations, market capitalisation, Government grants, the income we derive from fund raising activities such as Sukuk, as well as loans obtained. TRADE-OFFS We use our Financial Capital to expand our hospital networks, and invest in medical equipment and new technologies, which increase our Manufactured and Intellectual Capitals. While this results in the reduction of our Financial Capital in the short-term, in the longer term it adds to the strength of our business and therefore our Financial Capital. LINK TO OUR SEVEN STRATEGIC THRUSTS LINK TO MATERIAL MATTERS Key Inputs Outcomes Activities and Processes MARKET CAPITALISATION (BIL) NET PROFIT (MIL) REVENUE GROWTH (%) EBITDA GROWTH (%) DIVIDEND PAYOUT PER SHARE (SEN) CASH GENERATED FROM OPERATIONS (MIL) RM4.1 (2017) RM4.4 (2018) RM4.4 (2016) 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 RM155.9 4% 10% 1.2 sen RM166.9 7% 3% 1.8 sen RM186.2 4% 18% 2.0 sen RM222.0 RM432.7 RM629.1 DEBT/EQUITY RATIO 0.88 (2017) 0.82 (2018) 0.94 (2016) CASH USED IN INVESTING ACTIVITIES (MIL) RM419.4 (2017) RM453.9 (2018) RM131.5 (2016) TOTAL BORROWINGS (CURRENT AND NON-CURRENT) (BIL) RM1.6 (2017) RM1.8 (2018) RM1.6 (2016) CAPITAL EXPENDITURE (MIL) RM466.6 (2017) RM388.5 (2018) RM260.9 (2016) • Funding the development of new hospitals to expand our hospital network • Funding the expansion of existing hospitals to cater to increased market demand • Funding for new equipment • Funding for research and development (R&D) and innovation activities • Cost optimisation programme to reduce maintenance costs • Appropriate management of debt and equity • Effectively and efficiently manage the liquidity of the Group to ensure a strong balance sheet For more information on our financial performance, please refer to our Chief Financial Officer’s Review on pages 66 to 68 of this Integrated Report. IR 05 07 03 06 01 02 • Cost of Healthcare Services • Government Regulations • Funders for Healthcare Services 04