cash position will help IHH meet the working capital and capital expenditure needs in the immediate term. Return on Equity: IHH is committed to increasing Return on Equity (ROE) for all shareholders. Our refined strategic ACE Framework will guide us towards greater growth in the coming years. Including the MFRS 129 application, our full year ROE for December 2023 stands at 10.7%. Excluding the MFRS 129 effects, our ROE stands at 12.3% Awards IHH’s excellent financial management and investor relations did not go unnoticed by industry peers and the investment community. In 2023, IHH was named one of Time magazine’s ‘World’s Best Companies’ (ranked 726 out of 750) and IHH Singapore was recognised as the ‘Most Outstanding Company in Singapore – Healthcare Sector’ in Asiamoney Asia’s Outstanding Companies Poll. IHH also picked up numerous accolades at the Institutional Investor 2023 Asia Pacific (Ex-Japan) Executive Team Rankings, such as ‘Most Honored Companies – Rest of Asia’ and other awards for the healthcare, pharma and biotech category. Dividends Our commitment to deliver shareholder value was reflected through regular and strategic dividend payouts. The Board of Directors declared a final cash dividend of 5.5 sen per share to be paid on 26 April 2024, bringing the total ordinary dividend for FY2023 to 9.0 sen per share (previously paid interim cash dividend of 3.5 sen per share on 27 October 2023). The total dividend declared for FY2023 amounts to 18.6 sen per share, including a special In addition, we were also recognised at the IR Magazine Awards South East Asia 2023 for Best ESG Reporting (Large Cap); The Edge Singapore’s Billion Dollar Club 2023 Award for Growth in Profit after Tax (PAT) over three years; and at the Adam Smith Awards Asia as a Highly Commended Winner of the Best Treasury Transformation Project. Outlook Looking forward, the Group anticipates navigating a landscape that continues to be marked by macroeconomic uncertainties, including rising energy prices, overall inflation and higher labour costs due to a global shortage of healthcare workers. These challenges, dividend of 9.6 sen per share paid in end June 2023 from the divestment of IMU. Furthermore, the Group enhanced its dividend policy to distribute no less than 30% of its PATMI (excluding exceptional items) for the financial year, up from 20%. This comes on the back of yet another strong fiscal year, and is a sustainable dividend that will contribute to the long-term success of IHH and all stakeholders. while not unique to IHH, positions us to chart further growth with guidance from the ACE Framework for sustained growth (see page 3 for details). Our strategic priorities encompasses both organic and inorganic growth drivers, expansion of IHH’s services in the healthcare continuum, developing new engines of growth as well as turning around underperforming assets. We are committed to strive for continued revenue growth and maintaining a healthy ROE. At the core of our financial strategy is the commitment to bolster IHH’s position as a global healthcare network that is future-ready, adaptable and poised for excellence. Operating Cash Flow Key Priorities for Capital Deployment Invest in Growth • Organic growth by adding new beds in existing facilities and driving bed occupancy • Investing in medical technology to improve clinical outcomes • Renovate and rejuvenate hospitals for improved patient experience • Digital innovation and transformation initiatives • Develop and grow the laboratory segment Drive Shareholder Returns • Total FY2023 ordinary dividend: 9.0 sen per share • Including special dividend of 9.6 sen, total dividend for FY2023 is 18.6 sen per share. • Dividend yield: 3.1% • Dividend policy enhanced to distribute no less than 30% of PATMI (excluding exceptional items), up from 20% • 10.7% Return on Equity (12.3% excluding MFRS 129) Acquire Strategic Asset • Strict discipline with a focus on returns • Merger and acquisition in existing and/or new adjacent markets • EPS and ROE accretive Capital Allocation Framework Annual Report 2023 43
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