KPJ Healthcare Berhad - Annual Report 2018

OUR BUSINESS & STRATEGY OUR PERFORMANCE AND OUTLOOK OUR RESULTS OUR GOVERNANCE APPENDICES ABOUT THIS REPORT 31 KPJ HEALTHCARE BERHAD www.kpjhealth.com.my STRATEGIC RESPONSE OUR STRATEGIC THRUSTS OUR STRATEGIC FOCUS IN 2018 TARGETS FOR 2018 ACHIEVEMENTS IN 2018 New Niches Adopting Focused Strategies to Generate Continuous Growth We focused on developing outpatient services through our Ambulatory Care Centre (ACC) KPJ continued to invest in the elderly care segment by opening up more Senior & Assisted Living Care Sevices (SALC) We focused on the niche business for the young demography through our mother and child-related healthcare We expanded our pharmace footprint by tapping into the local community segment Within the health tourism segment, we focused on expanding our market reach to the two global superpowers of China and India, both of which have high value medical tourists To open at least one ACC To open at least one SALC To open at least one confinement centre To increase Health Tourism Visits and Revenue growth by 15% • ACC Taiping opening deferred to 2019 • Opened a SALC at KPJ Kuantan Wellness and Damai Wellness Centre in Kota Kinabalu • Launched one Confinement Care Centre at Damai Wellness in Kota Kinabalu • Opened JX Pharmacy Visits and revenue dropped by 4% and 2% respectively. This is attributed to the drop in overall tourists arrival in 2018 compared to the previous year Talent Management Continue to create employment opportunities for future generations With our academic arm KPJ Healthcare University College as a talent pipeline, we focused on strengthening our education delivery model to achieve full university status by 2020 Commencement of Academic Health Centre (AHC) and to be the first private hospital in Malaysia to adopt this AHC concept New programmes introduced To maintain secured employment since inception • To commence with AHC in first quarter of 2019 • Introduced three new programmes for nursing and management for further improvements in managing quality • Secured employment for 90% of KPJUC graduates Business Process Improvement Successful Migration to KCIS2 (KPJ Clinical Information System) and HITS2 (Hospital Information System) We focused on successfully completing the migration of our hospital systems to KCIS2 and HITS2 Responsible Stewardship of Natural Resources We embarked on an awareness campaign across the Group to create greater consciousness on how we could minimise our business’ impact on the environment and reduce our carbon footprint HITS2 – 25 hospitals KCIS2 – 25 hospitals Environmental Targets Set Energy used: < 27.69 kWh per square foot Water utilised : < 111 cubic meters per staff Hazardous Waste: < 0.5 kg per patient • 7 hospitals on HITS2 • 6 hospitals on KCIS2 Environmental Targets Achieved Energy used: 24.33kWh per square foot Water utilised: 106 cubic meters per staff Hazardous Waste : 0.5 kg per patient Sustainable Value for Stakeholders To Contribute to the Sustainable Socio-economic Wellbeing of our Stakeholders Our aim was to behave and operate in a responsible and sustainable manner, as a valued member of the regional community. With regards to our shareholders, our aim was to offer decent returns for their investment. To open one Klinik Waqaf An-Nur (KWAN) Target >RM5 million spend on CSR activities and programmes To remain consistent in our dividend payout of between 45% and 50% of the annual net profit attributable to shareholders • New KWAN Seberang Jaya building opened in November 2018 • RM13.2 million spent on CSR programmes in 2018 Dividend per share of 2.0 sen, with total of RM84.7 million in dividend payments, representing 45% dividend payout ratio. 04 05 06 07