Result Announcement for 1H 2022

(unaudited figures S$’m)

Highlights of 1H 2022 Performance

• Group achieved 11.2% growth in revenue to S$382.3 million

• Group’s EBITDA grew 43.5% to S$107.0 million

• Group’s Profit after Tax grew 54.4% to S$60.0 million

• Revenue from Healthcare Services Division increased by 24.1%

• Healthy cash position of S$288.0 million

• Approval to open In-Vitro Fertilisation/Assisted Reproductive Therapy Centre at Le Cheng Hainan

Raffles Reports Revenue of S$382.3M and PAT of S$60M

Opening In-Vitro Fertilisation/Assisted Reproductive Therapy Centre at Le Cheng, Hainan

Singapore, 1 August 2022 – Raffles Medical Group (the Group) today reported its 1H 2022 results, posting revenue of S$382.3 million, a 11.2 % increase over 1H 2021.

With the resumption of air-travel and subsequent relaxation of COVID-19 related travel protocols, the Group saw a return of local and foreign patients seeking treatment in Singapore. Concurrently, some of the Group’s COVID-19 related activities had tapered off. Reflecting the return of patients to our clinics, revenue from the Healthcare division grew by 24.1% to S$255.6 million. Revenue from the Hospital Services division decreased by 11.4% to S$151.8 million, due to a decrease in the number of polymerase chain reaction (PCR) diagnostic tests carried out in 1H 2022.

The Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 43.5% from S$74.5 million in 1H 2021 to S$107.0 million in 1H 2022. Profit After Tax and Minority Interests (PATMI) grew 51.3% to S$59.7 million in 1H 2022 from S$39.4 million in 1H 2021.

The Group’s balance sheet remains strong. As at 30 June 2022, the Group remained in a net cash position with S$288.0 million in cash.

Business Updates

Resumption of international travel and easing of COVID-19 measures

• With the relaxation of safe management measures in Singapore as well as the resumption of international travel, patient numbers in both the Group’s Healthcare and Hospital Services divisions have recovered.

• While the Group’s COVID-19 support activities in the areas of stand-alone vaccination and PCR test centres have tapered off, we continue to support the government in operating combined testing and vaccination centres in two locations in Singapore.

• We also continue to operate community treatment facilities (CTF) which has evolved to offer step-down care for COVID-19 positive patients ahead of discharge from hospitalisation.

• The Group continues to work with key customers and corporate clients to offer integrated healthcare services solutions to meet their organisations’ needs.

Approval received for Hainan operation

• The Group has received the approval to set up an In-Vitro Fertilisation/Assisted Reproductive Therapy centre at Le Cheng, Hainan, China. This facility will complement our three existing China hospitals’ offerings through forming a full life-cycle service chain within its obstetrics and gynaecology practices for its patients across China, targeted to serve the estimated 40 million women in China who may require reproductive fertility services.

• The Group’s operations in China were impacted by lockdowns. The three hospitals encountered sporadic interruptions due to the lockdowns, with RafflesHospitalShanghai the most impacted. Although all three hospitals continued to operate during the respective lockdowns, they faced staffing constraints during this period as staff had to remain at home during lockdowns and many patients were unable to travel to our hospitals to seek medical treatment.

• Throughout this period, our hospitals in China continued to support the local community in its fight against COVID-19 by taking part in government led COVID-19 initiatives such as community vaccination and PCR testing programmes.

While borders in most countries have re-opened and international travel has resumed, the COVID-19 pandemic and emergence of new and more infectious strains remain a threat. However, we remain cautiously optimistic that the return of foreign patients seeking medical treatments in Singapore will continue. We are also cautiously optimistic that the number of COVID-19 cases in China will decline and travel restrictions will ease in the coming months, and that the Group’s normal business activities can resume in the near future.

Based on current conditions and barring unforeseen circumstances and worsening of COVID-19 situation, the Directors expect the Group to remain profitable for the rest of the year.

Dr Loo Choon Yong, Executive Chairman, Raffles Medical Group, said: “Having continued to build capabilities in the past year, RafflesMedicalGroup is well-positioned to serve returning international and local patients as pandemic measures ease. We are pleased that our patients continue to trust the Raffles brand of quality healthcare services, and we will continue to innovate to serve their evolving holistic healthcare and wellness needs.”

For media queries, please contact:

Joanna Lee

Manager, Corporate Communications Raffles Medical Group

Email: lee_joanna@rafflesmedical.com