THROUGH THE SILOAM 5.0 STRATEGY, SILO COMMITS TO DEVELOPING THE HEALTHCARE INDUSTRY WHILE ACHIEVING GROWTH

Jakarta, April 4, 2023 – PT Siloam International Hospitals Tbk. (SILO), a subsidiary of PT Lippo Karawaci Tbk. (LPKR) in the healthcare sector, has successfully demonstrated the impact of its long-term strategy titled Siloam 5.0. Initiated in 2019, this strategic development and performance monitoring framework has proven effective in significantly boosting SILO’s performance.

Since its implementation in 2020, Siloam 5.0 has enabled SILO to set structured business targets. By 2022, the strategy was running smoothly across target-setting, monitoring, and execution. Thanks to Siloam 5.0, the company closed the 2022 financial year with outstanding results through continuous clinical programs, investments in service quality, strengthened partnerships with the government and insurance providers, optimized network expansion, and a transformative digital business journey.

SILO’s strategy is built on four key pillars: Core Business Growth, Network Expansion, Clinical Programs, and Digital Business.

• Under Core Business Growth, Siloam maintained its focus on improving payment composition and enhancing its patient loyalty program. As a result, out-of-pocket patients contributed over 80% of total revenue in 2022, while BPJS Kesehatan users maintained a 20% share. This payment mix transformation led to an increase in Average Revenue Per Occupied Bed (ARPOB) from IDR 2.2 billion in 2019 to IDR 3.3 billion in 2022.

• On the Digital Business front, SILO has advanced toward end-to-end integrated transactions and communications. Patients now enjoy better engagement and full access to medical records through the mobile application.

• SILO also continues to invest in the development of high-standard Centers of Excellence (CoEs) in Oncology, Cardiology, Neurology, and Urology, driving higher patient visits. In 2022, Inpatient Days reached 813,676 days, an increase of 13.7% from 2021. Outpatient visits surpassed 3.2 million, up 33.9% compared to 2021. This growth was fueled by the increasing complexity of medical cases and a rise in surgical procedures.

As a result, in 2022 SILO recorded revenues of IDR 9.51 trillion, a 1.45% increase from IDR 9.38 trillion in 2021. Operating profit rose to IDR 1.02 trillion, compared to IDR 1.01 trillion in 2021. Meanwhile, net profit reached IDR 696.49 billion, a 3.31% increase from IDR 671.41 billion in the previous year.

LPKR Group CEO and SILO President Commissioner John Riady reaffirmed LPKR’s commitment through SILO to continuously develop Indonesia’s healthcare industry.

“Healthcare is one of the most vital sectors that needs further development in Indonesia. As the economy continues to grow, so does the demand for quality healthcare infrastructure. LPKR, through SILO, is committed to ongoing expansion to meet the nation’s healthcare needs, and we are determined to continue growing,” said John.