3. DESCRIPTION OF EACH BUSINESS LINE

3.1 Product Description 

  Bumrungrad Hospital Public Company Limited (“the Company”)

  The Company is the operator of Bumrungrad International Hospital,
  Bangkok, which is the main revenue contributor. As at 31 December
  2010, the revenue from hospital operations of the Bangkok facility is
  95.7% of total revenues.

  The Hospital’s Services:

  The services of Bumrungrad International Hospital, Bangkok can be
  detailed as follows:

  1. Outpatient service has 34 outpatient clinics with 250 examination
  rooms, and capacity to serve over 4,000 outpatients per day, with the
  following details:

+---------------------------------+------------------------------------+
|   • Allergy Center              |   • Horizon Regional Cancer Center |
+---------------------------------+------------------------------------+
|   • Aviation Medicine Center    |   • Men Center                     |
+---------------------------------+------------------------------------+
|   • Behavioral Health Center    |   • Neurology Center               |
+---------------------------------+------------------------------------+
|   • Breast Screening Center     |   • Orthopedic Center              |
+---------------------------------+------------------------------------+
|   • Children’s Center           |   • Pathology Center               |
+---------------------------------+------------------------------------+
|   • Dental Center               |   • Physiotherapy Center           |
+---------------------------------+------------------------------------+
|   • Diabetes Center             |   • Plastic Surgery Center         |
+---------------------------------+------------------------------------+
|   • Dialysis Center             |   • Pulmonary Physiology Center    |
+---------------------------------+------------------------------------+
|   • Digestive Disease Center    |   • Radiology Center               |
+---------------------------------+------------------------------------+
|   • Early Intervention Center   |   • Rehabilitation Center          |
+---------------------------------+------------------------------------+
|   • Emergency Center            |   • Skin Center                    |
+---------------------------------+------------------------------------+
|   • Endoscopic Center           |   • Skin Laser Center              |
+---------------------------------+------------------------------------+
|   • Eye and ENT Center          |   • Sleep Disorders Center         |
+---------------------------------+------------------------------------+
|   • Eye Laser Refraction Center |   • Spine Specialists Center       |
+---------------------------------+------------------------------------+
|   • Fertility Center            |   • Stroke Center                  |
+---------------------------------+------------------------------------+
|   • Health Screening Center     |   • Urology Center                 |
+---------------------------------+------------------------------------+
|   • Heart Center                |   • Women’s Center                 |
+---------------------------------+------------------------------------+

  2. Licensed capacity for inpatient service totals 538 beds, of which
  37 are adult intensive care beds, 14 are cardiac care beds, 9 are
  pediatric intensive care beds and 5 are level III neonatal intensive
  care beds. As at 31 December 2010, the hospital has 484 beds in
  operation.

  In 2010, the Company treated a total of over one million patients. The
  revenue contribution by inpatient and outpatient in 2010 are as
  follows:

  -----------------------------------------------------------------------
  Inpatient and outpatient (% of total revenue) []

  -----------------------------------------------------------------------

  International Patient Services:

  The Company has a strong and successful track record in increasing its
  presence in the international market. It has an International Patient
  Services Center to facilitate and accommodate international patients.
  The services offered include interpreters, international insurance
  coordination and international medical coordinators, referral center,
  email correspondence, visa extension counter, embassy assistance,
  airport reception and travel assistance. In addition, the Company
  operates two serviced apartments: BH Residence (BH Tower), with 56
  fully serviced apartments connected to the hospital, and Bumrungrad
  Hospitality Suites, with 51 fully serviced apartments for patients and
  families. The Company also has 18 overseas referral offices in 15
  countries.

  []In 2010, Bumrungrad International Hospital treated over 400,000
  international patients from over 200 countries. The top three highest
  revenue contributors by country continue to be the United Arab
  Emirates, the United States and Myanmar. The following graph shows the
  historical revenue contribution of international patients over the
  past five years.

  Thai vs. international patients (% of total revenue)

  *Note: International patients are by nationality and include both
  expatriates and medical tourists.

  The Bangkok Facility:

  At present, the hospital’s services are offered in three buildings:

  1. Bumrungrad International Clinic Building is a 22-storey outpatient
  facility, with the first ten floors being used as parking spaces and
  the top 12 floors as outpatient clinics and ancillary services. The
  building offers outpatient services only. Currently, five clinic
  floors are open for service, including the health screening
  (check-up), heart, medical/surgical clinics, infectious disease,
  kidney, neurology, pulmonology, rheumatology, urology, and men’s
  centers together with two non-clinic floors for patient services and
  restaurant. The Bumrungrad International Clinic Building has five
  floors of outpatient clinics remaining unopened. The Company plans to
  gradually occupy the five remaining floor of this building, operating
  four as outpatient clinic floors and one as a new conference and
  educational center floor.

2.  Bumrungrad International Hospital Building offers a combination of
    inpatient and outpatient services. The licensed capacity for 538
    inpatient beds resides within Bumrungrad International Hospital
    Building, while outpatient services offered in this building include
    services such as the cancer, dental, digestive disease, children’s
    and women’s centers. Major renovations in Bumrungrad International
    Hospital Building of both the outpatient clinics, including the
    Women’s Center, the Digestive Disease Center, and inpatient rooms
    were completed on plan by mid-2010. The renovations have taken into
    consideration patient safety and the needs of patients, doctors and
    nurses. The Company will continue to expand the service capacity
    within the hospital building, with the next step of this growth to
    include the planned addition of over 20 intensive care beds

  3. BH Tower, reacquired in 2008, allows flexibility in the use of
  space on the Bangkok campus, permitting the shifting of office
  functions out of the hospital building and into BH Tower to allow
  expansion of clinical activities as needed. BH Tower houses the
  hospital's skin center, hospital support services, the Vitallife
  clinic, and offices. It also houses the BH Residence serviced
  apartments, retail shops and restaurants, and 7 floors of parking
  spaces.

  Bumrungrad International Limited

  Bumrungrad International Limited, the Company’s 31.5% associated
  company, makes investments in overseas healthcare-related businesses
  and provides consulting and management services for those businesses.
  As at 31 December 2010, Bumrungrad International Limited has
  investments in a hospital in the Philippines and a management contract
  in Abu Dhabi, United Arab Emirates.

  Bumrungrad International Limited has a 56.5% effective investment in
  Asian Hospital Inc. (“AHI”) in the Philippines as at 31 December 2010.
  AHI commenced operations on 15 March 2002 as the first major private
  hospital with tertiary care facilities in the southern Luzon corridor
  of metropolitan Manila. It is a 217-bed hospital, well known for its
  modern medical equipment and experienced physicians, particularly in
  cardiology. AHI is in the process of expanding its inpatient and
  outpatient operating capacity with the development of a 14-storey
  expansion tower adjacent to the hospital. The new tower is expected to
  commence operations of selected floors during 2011. Both inpatient and
  outpatient capacity will be opened as needed.

  Bumrungrad International Limited completed the sale of an investment
  in Asia Renal Care (“ARC”), a 100% indirectly owned subsidiary, in
  July 2010. The rationale for the sale of ARC was based on regulatory
  events that impacted growth prospects in Taiwan and Korea, key markets
  for ARC. In connection with the sale of ARC, the Company sold its 51%
  stake in Asia Renal Care (Thailand) Co., Ltd. for the same reasons.

  Bumrungrad International Limited has a four-year management agreement
  with the Health Authority of Abu Dhabi to operate Mafraq Hospital in
  Abu Dhabi, United Arab Emirates. Mafraq Hospital is a public hospital
  with 463 acute care beds, 33 critical care beds and 14 neonatal
  intensive care beds. It treated over 280,000 patients, including more
  than 17,000 inpatients in 2010.

  In addition to the existing operations, Bumrungrad International
  Limited is pursuing other investment opportunities in the region. Its
  strategic partners, including Istithmar, Temasek, Asia Financial
  Holdings and Bangkok Bank Public Company Limited, are sources of new
  investment opportunities and networks in their respective regions,
  which are the Middle East and Asia.

 3.2 Industry and Competition

  In general, the demand for healthcare correlates with the growth of
  GDP and the aging of the population. From time to time, issues such as
  domestic political unrest and global as well as domestic economic
  downturns can affect the growth in consumption of private healthcare.
  With supply of private healthcare facilities in Thailand* in excess of
  domestic demand, the competition for Thai patients remains intense.

  While the global medical tourism industry is expected to see continued
  growth, the Company believes that most international demand will arise
  from patients living within an 8 hour flight of Bangkok. Thailand’s
  regional competitors are hospitals in countries such as Singapore,
  Malaysia and India. Private hospitals in Thailand have a competitive
  advantage compared to many other countries, as Thailand has a unique
  combination of high quality healthcare, accessibility and
  affordability, coupled with Thailand being a popular tourist
  destination with a good supporting infrastructure. Within Thailand
  itself, there are a limited number of private hospitals that have the
  broad range of specialties and subspecialties, technology and quality
  of patient care on a single campus, as offered by the Company.

  The Company’s strategy is to continue building on this advantage in
  clinical expertise, service capability and patient satisfaction which
  results in a differentiated product based on quality superiority.
  Pricing is targeted within the top tier of Thai hospitals, while
  remaining price competitive in the region, to offer a compelling value
  proposition.

  *According to the latest available data provided by publications,
  there were 344 private hospitals totaling 35,806 beds in Thailand as
  at 2006, of which 102 hospitals totaling 15,500 beds are in Bangkok

  In the past year, the Company has focused on marketing activities for
  the domestic market in order to expand its customer base. The
  activities include advertising on all media including television,
  radio, newspapers and magazines, in order to promote brand awareness.
  The Company has also sponsored television programs, newspaper and
  magazine columns on health-related topics. In addition, the Healthy
  Living Club membership program, launched in 2008, provides members
  with discounts and other privileges to encourage loyalty among
  existing patients as well as attract new patients. Moreover, various
  activities are organized each quarter, such health fairs, public
  seminars, expatriate orientations, and themed exhibition, as well as
  the sale of packaged services such as checkups and vaccinations, in
  order to attract new customers.

  In appealing to international patients, the Company operates in
  conjunction with 18 overseas referral offices in its major markets and
  has an International Patient Center to accommodate the needs of
  international patients, including language and cultural support. The
  Company is also a tertiary referral center for both domestic and
  international hospitals.

Target Markets

  Domestic market can be divided into two types, middle to upper class
  Thais and expatriate community in Thailand.

  International market is medical tourism from countries where there are
  issues with access and affordability with their healthcare services.

  In addition, the Company also targets patients from corporate
  contracts, insurance companies and referral patients both within
  Thailand and from abroad.

Distribution and Marketing Channels 

  An effective way to attract customers is by way of obtaining patient
  referrals, both within Thailand and from other countries. With
  Bumrungrad International Hospital, Bangkok as a reputable tertiary
  hospital of 30 years, specializing in the treatments of complicated
  diseases, the Company has established excellent referral connections
  with hospitals and doctors both within Thailand and abroad.

  The hospital maintains over one thousand corporate and insurance
  contracts as a method for directing patients to the hospital.

  For its international marketing, the Company has set up 18 referral
  offices in 15 countries.

3.3 Sources of Products and Services

Capacity

As at 31 December

  -----------------------------------------------------------------------
  Inpatients                       2010         2009         2008
  -------------------------------- ------------ ------------ ------------
  Total number of beds             538          538          554

  Beds in operation*               484          457          432

  Total capacity**                 176,660      166,805      158,112

  Occupied beds per year (beds)    122,331      113,081      116,136

  Capacity Utilization (percent)   69.25        67.79        73.45
  -----------------------------------------------------------------------

  * Number of beds in operation decreased in 2008 as some of the beds
  were closed down for renovation

  ** Total capacity is calculated by multiplying the number of beds in
  operation with the number of days of service

As at 31 December

  -------------------------------- ------------ ------------ ------------
  Outpatients                      2010         2009         2008

  Capacity per day (persons)       4,500        4,500        4,083*

  Average outpatients per day      2,680        2,677        2,707
  (persons)                                                  

  Capacity Utilization (percent)   59.56        59.49        66.30
  -------------------------------- ------------ ------------ ------------

  * 2008 capacity is weighted average at 3,500 visits per day for the
  first five months and 4,500 visits per day for the last seven months

  The Hospital completed the construction of the 22-storey Bumrungrad
  International Clinic Building to accommodate the rising demand,
  especially of the outpatient service. Five of the floors are fully
  opened as outpatient clinics since June 2008, resulting in an increase
  in outpatient maximum capacity from 3,500 visits per day to 4,500
  visits per day.

Raw Materials and Suppliers 

  Primary raw materials of the hospital business are pharmaceuticals,
  medical supplies and medical equipment. Suppliers of the raw materials
  are both local companies and international distributors with offices
  in Thailand. There are over 600 suppliers and the Company has no
  trouble sourcing supplies. In addition, the Company has an efficient
  purchasing and inventory control system, which evaluates the
  appropriateness of the price, and effectiveness and quality of the raw
  materials.

Environmental Compliance 

  The Company values the significance of the environment, energy and
  natural resources conservation. The Company has set up an
  environmental policy to communicate to employees its views on
  environment preservation and encourages employees to help protect
  global environment. The Company is committed to controlling
  environmental impact to neighboring communities and efficiently
  utilizing natural resources by practicing energy conservation and
  supporting material recycling. All employees and contractors of the
  Company are expected to follow the government environmental
  regulations and the Company’s environmental policies.