PT SILOAM INTERNATIONAL HOSPITALS Tbk AND ... 5, 2013 paraf: PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES Table of Contents Page Directors’ Statement Letter Independent

Final Draft/December 5, 2013 Paraf:

PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES Interim Consolidated Financial Statements As of September 30, 2013 and December 31, 2012 and For the 9 (Nine) Months Period Ended September 30, 2013 and 2012 (Unaudited)

Draft/December 5, 2013 paraf:

PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES Table of Contents Page

Directors’ Statement Letter Independent Auditors’ Report

Interim Consolidated Financial Statements As of September 30, 2013 and December 31, 2012 and For the 9 (Nine) Months Period Ended September 30, 2013 and 2012 (Unaudited) Interim Consolidated Statements of Financial Position 1 Interim Consolidated Statements of Comprehensive Income 3 Interim Consolidated Statements of Changes in Equity 4 Interim Consolidated Statements of Cash Flows 5 Interim Notes to the Consolidated Financial Statements 6

The accompanying notes form an integral part of these

interim consolidated financial statements

Final Draft/05 Desember 2013 1 Paraf:

These interim consolidated financial statements are originally issued in Indonesian language PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As of September 30, 2013 and December 31, 2012

(Expressed in Full Rupiah, Unless Otherwise Stated)

ASSETS Notes September 30, 2013 December 31, 2012

Rp Rp

CURRENT ASSETS

Cash and Cash Equivalent 3.d, 3.e, 3.f, 3.r, 4, 11, 30, 31 978,148,199,555 168,707,958,679

Trade Receivables 3.r, 3.u, 5, 31

Related Parties 3.f, 11 2,696,901,240 3,171,020,453

Third Parties 250,562,364,681 183,895,756,421

Other Current Financial Assets 3.r, 6, 31 4,268,321,732 8,072,306,481

Inventories 3.g, 3.k, 7 80,475,752,415 75,351,731,878

Prepaid Taxes 3.q, 8.a 5,674,744,249 --

Prepaid Expenses 3.h, 9 22,210,313,241 17,538,003,848

Total Current Assets 1,344,036,597,113 456,736,777,760

NON-CURRENT ASSETS

Advances 10 34,113,276,736 152,755,381,554

Due from Related Parties Non-Trade 3.f, 3.r, 11, 31 468,194,358 662,399,000

Property and Equipment 3.i, 3.k, 3.u, 13 1,198,016,491,345 865,292,426,507

Goodwill 3.l, 3.m, 14.a 54,418,415,585 54,418,415,585

Intangible Assets 3.m, 3.u, 14.b 6,877,193,417 6,742,214,109

Deferred Tax Assets 3.q, 8.d 16,701,156,085 16,308,287,480

Other Non-Current Financial Assets 12 25,460,113,429 33,310,116,097

Total Non-Current Assets 1,336,054,840,955 1,129,489,240,332

TOTAL ASSETS 2,680,091,438,068 1,586,226,018,092 Total Aset Tidak Lancar




These interim consolidated financial statements are originally issued in Indonesian language PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Continued) As of September 30, 2013 and December 31, 2012


LIABILITIES AND EQUITY Notes September 30, 2013 December 31, 2012

Rp Rp

LIABILITIES

CURRENT LIABILITIES

Trade Payables - Third Parties 3.r, 15, 31 163,359,128,948 155,526,637,952

Short-Term Bank Loans 3.r, 18, 31 4,929,495,103 4,853,583,896

Accrued Expenses 3.d, 3.r, 17, 30, 31 100,207,025,657 33,509,451,861

Advances from Patients 3.p 13,315,279,747 5,891,297,072

Taxes Payable 3.q, 8.b 7,782,390,303 17,811,426,058

Other Current Financial Liabilities 3.r, 16, 31 74,638,201,874 26,924,904,271

Current Portion of Long-Term-Bank Loans 3.r, 18, 31 11,642,439,328 11,218,103,419

Current Portion of Deferred Gain on

Sale and Leaseback Transaction 3.j, 19, 34.a 11,897,445,548 11,897,445,548

Total Current Liabilities 387,771,406,508 267,632,850,077

NON-CURRENT LIABILITIES

Long-Term Bank Loans 3.r, 18, 31 45,966,472,931 54,753,114,467

Due to Related Parties Non-Trade 3.f, 3.r, 11, 31 426,786,745,368 798,786,624,559

Deferred Gain on Sale and Leaseback Transactions 3.j, 19, 34.a 133,805,517,734 142,736,750,831

Long-Term Employment Benefit Liabilities 3.n, 20 86,390,486,413 71,022,629,649

Deferred Tax Liabilities 3.q, 8.d 6,741,981,780 6,653,250,000

Total Non-Current Liabilities 699,691,204,226 1,073,952,369,506

Total Liabilities 1,087,462,610,734 1,341,585,219,583

EQUITY

Equity Attributable to Owners of the Parent Company

Capital Stock, par Value - Rp 100 per Share

Authorized Capital - 4,000,000,000 shares as of December 31,

Issued and Fully Paid: 21 115,610,000,000 100,000,000,000

1,156,100,000 Shares as of September 30, 2013;

1,000,000,000 Shares as of December 31, 2012

Additional Paid-in Capital - Net 3.o, 3.r, 22 1,289,664,515,321 (23,058,434,679)

Retained Earnings 176,378,189,280 156,238,115,976

Total Equity Attributable to Owners of the Parent Company 1,581,652,704,601 233,179,681,297

Non-Controlling Interest 3.c, 23 10,976,122,733 11,461,117,212

TOTAL EQUITY 1,592,628,827,334 244,640,798,509

TOTAL LIABILITIES AND EQUITY 2,680,091,438,068 1,586,226,018,092




These interim consolidated financial statements are originally issued in Indonesian language PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the 9 (Nine) Months Period Ended September 30, 2013 and 2012 (Unaudited)


Notes 2013 2012

(9 Months) (9 Months)

Rp RpOPERASI YANG DILANJUTKAN

REVENUES 3.p, 24 1,829,813,739,498 1,263,240,358,964

COST OF SALES 3.p, 25 (1,370,188,040,434) (943,773,160,611)

GROSS PROFIT 459,625,699,064 319,467,198,353

Operating Expenses 3.p, 26 (420,880,880,854) (256,057,767,581)

Others - Net (247,477,936) 14,632,927,506

PROFIT FROM OPERATION 38,497,340,274 78,042,358,278

Interest Income 27 4,946,205,484 2,545,633,501

Financial Charges 27 (14,145,947,758) (13,388,508,597)

PROFIT BEFORE TAX 29,297,598,000 67,199,483,182

Tax Expenses 3.q, 8.c (9,642,519,175) (16,334,910,560)

PROFIT FOR THE CURRENT PERIOD 19,655,078,825 50,864,572,622

OTHER COMPREHENSIVE INCOME -- --

TOTAL COMPREHENSIVE INCOME

FOR THE CURRENT PERIOD 19,655,078,825 50,864,572,622

PROFIT FOR THE CURRENT PERIOD ATTRIBUTABLE TO:

Owners of the Parent Company 20,140,073,304 46,004,071,775

Non-Controlling Interest 3.c (484,994,479) 4,860,500,847

TOTAL 19,655,078,825 50,864,572,622

TOTAL COMPREHENSIVE INCOME FOR THE CURRENT PERIOD

ATTRIBUTABLE TO:

Owners of the Parent Company 20,140,073,304 46,004,071,775

Non-Controlling Interest 3.c (484,994,479) 4,860,500,847

TOTAL 19,655,078,825 50,864,572,622

EARNINGS PER SHAREBasic, Profit for the Period Attributable to

Ordinary Share Holders of the Parent Company 3.s, 29 19.93 46.00



Fina Draft/5 December 2013 4 Paraf:

These interim consolidated financial statements are originally issued in Indonesian language PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the 9 (Nine) Months Period Ended September 30, 2013 and 2012 (Unaudited)


Notes Capital Stock Total Equity Non-Controlling Total

Difference in Value Unappropriated Attributable to Interest Equity

from Restructuring Owners of the

Paid-in Transactions between Parent Entity

Capital Entities Under Change in Equity Excess of Common Control- Transactions of

Par Net Subsidiaries Total

Rp Rp Rp Rp Rp Rp Rp Rp Rp

BALANCE AS OF DECEMBER 31, 2011 100,000,000,000 -- (11,329,652,726) (11,728,781,953) (23,058,434,679) 105,776,894,314 182,718,459,635 (3,755,002,456) 178,963,457,179 ` ` ` ` ` `

Changes in Equity for the Period September 30, 2012

Non-Controlling Interest 3.c -- -- -- -- -- -- -- 5,000,000,000 5,000,000,000

Total Comprehensive Income for the Current Period -- -- -- -- -- 46,004,071,775 46,004,071,775 4,860,500,847 50,864,572,622

BALANCE AS OF SEPTEMBER 30, 2012 100,000,000,000 -- (11,329,652,726) (11,728,781,953) (23,058,434,679) 151,780,966,089 228,722,531,410 6,105,498,391 234,828,029,801 ` ` ` ` ` `

BALANCE AS OF DECEMBER 31, 2012 100,000,000,000 -- (11,329,652,726) (11,728,781,953) (23,058,434,679) 156,238,115,976 233,179,681,297 11,461,117,212 244,640,798,509 ` ` ` ` ` `

Changes in Equity for the Period September 30, 2013

Proceeds from Initial

Public Offering - Net of Share Issuance Costs 21, 22 15,610,000,000 1,312,722,950,000 -- -- 1,312,722,950,000 -- 1,328,332,950,000 -- 1,328,332,950,000

Total Comprehensive Income for the Current Period -- -- -- -- -- 20,140,073,304 20,140,073,304 (484,994,479) 19,655,078,825

BALANCE AS OF SEPTEMBER 30, 2013 115,610,000,000 1,312,722,950,000 (11,329,652,726) (11,728,781,953) 1,289,664,515,321 176,378,189,280 1,581,652,704,601 10,976,122,733 1,592,628,827,334 ` ` ` ` ` `

Total Equity Attributable to Owner of Parent Company

Retained EarningsAdditional Paid-in Capital - Net




These interim consolidated financial statements are originally issued in Indonesian language PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS For the 9 (Nine) Months Period Ended September 30, 2013 and 2012 (Unaudited)


2013 2012


Rp Rp

CASH FLOWS FROM OPERATING ACTIVITIES

Collections from Customers 1,771,633,699,568 1,222,832,008,980

Payments to Suppliers and Third Parties (1,329,081,900,093) (844,043,687,003)

Payments to Management and Employees (303,510,169,085) (192,080,937,305)

Cash Flows from Operations 139,041,630,390 186,707,384,672

Financial Charges Payment - Net (9,199,742,274) (10,842,875,096)

Payments of Taxes (19,276,077,498) (27,579,295,644)

Net Cash Provided by Operating Activities 110,565,810,618 148,285,213,932

CASH FLOWS FROM INVESTING ACTIVITIES

Advances for Purchase of Property and Equipment and Other Advances (15,418,327,066) (137,030,996,892)

Property and Equipment, and Software

Disposal 701,907,127 44,130,996

Acquisition (296,600,868,975) (254,218,378,178)

Acquisition of Subsidiaries - Net of Cash Acquired -- (52,811,697,309)

Receipt of Hospital Performance Guarantee -- 61,000,000,000

Net Cash Used in Investing Activities (311,317,288,914) (383,016,941,383)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Initial Public Offering - Net of

Share Issuance Costs 1,374,282,340,225 --

Receipts from (Payment to) Related Parties

Proceeds 374,052,229,887 520,763,329,459

Payments (742,702,203,961) (281,725,889,559)

Bank Loans

Proceeds 75,911,207 --

Payments (8,362,305,619) (5,639,064,710)

Net Cash Provided by Financing Activities 997,345,971,739 233,398,375,190

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT 796,594,493,443 (1,333,352,261)

Effect of Foreign Exchange on Cash and Cash Equivalent

at the End of the Period 12,845,747,433 12,246,601,150

CASH AND CASH EQUIVALENT AT BEGINNING PERIOD 168,707,958,679 146,586,517,428

CASH AND CASH EQUIVALENT AT ENDING PERIOD 978,148,199,555 157,499,766,317

These interim consolidated financial statements are originally issued in Indonesian language

PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIAR IES NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEME NTS As of September 30, 2013 and December 31, 2012 and

For the 9 (Nine) Months Period Ended September 30, 2013 and 2012 (Unaudited)

(In Full Rupiah, Unless Otherwise Stated)

Final Draftt/December 5, 2013 6 Paraf:

1. General

1.a. The Company’s Establishment PT Siloam International Hospitals Tbk (“the Company”) was established under the name of PT Sentralindo Wirasta on August 3, 1996 based on the Deed of Establishment No. 3, which was made in the presence of Myra Yuwono, S.H., a notary in Sukabumi. The deed of establishment was approved by the Minister of Justice of the Republic of Indonesia in his decree No. C2-8639.HT.01.01.TH.96 dated August 27, 1996 and was published in the State Gazette No. 97, Supplement No. 9518 on December 3, 1996. The Company’s articles of association have been amended several times, and the latest was by Notarial Deed No.307 dated March 25, 2013, made in the presence of Dr Irawan Soerodjo, S.H, M.Si, notary in Jakarta, to change the Company’s name to PT Siloam International Hospitals Tbk and the approval of issuing maximum of 115,000,000 new shares from the total unissued shares of the Company. The change in articles of association was approved by the Minister of Law and Human Rights of the Republic of Indonesia in his decree No. AHU-15929.A.H.01.02.Tahun 2013 dated March 27, 2013. Based on Notarial Deed No. 05 dated June 4, 2013, made in presence of Ir. Nanette Handari Adi Warsito, S.H., notary in Jakarta, it was agreed to increase the issued 115,000,000 shares to 190,500,000 shares. In accordance with Article 3 of the Company's articles of association, the Company's principal activity is public health services, including setting up and managing hospitals, polyclinics, health facilities and supporting infrastructure, and engaging in government healthcare programs. The Company commenced commercial operations in 2010 after the restructuring of PT Lippo Karawaci Tbk’s hospital units. Up to the reporting date, the Company's principal activity is in public health services, including setting up and managing hospitals. The operation of hospital units are in Sumatra, Java, Bali, Kalimantan and Sulawesi. The Company’s head office is located at Siloam Hospital Lippo Village 5th Floor, Jl. Siloam No. 6, Lippo Village, Tangerang 15811, Banten - Indonesia. The Parent entity of the Company is PT Megapratama Karya Persada and the ultimate parent entity is PT Lippo Karawaci Tbk.

1.b. The Company’s Initial Public Offering The Company’s initial public offering of 156,100,000 shares was declared effective by the Indonesia Financial Services Authority in its letter No. S-260/D.04/2013 dated September 2, 2013, and was listed in the Indonesian Stock Exchange on September 12, 2013.

1.c. The Group’s Structure The Company has ownership of more than 50%, either direct or indirectly, in the following subsidiaries:


PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIAR IES NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEME NTS (Continued) As of September 30, 2013 and December 31, 2012 and



Final Draft/December 5, 2013 7 Paraf:

Domicile Main Direct Indirect Year of

Business Ownership Ownership Starting September 30, 2013 December 31, 2012

Percentage Percentage Operation Rp Rp

PT Aritasindo Permaisemesta Jakarta Trading, 99.99% -- -- 90,917,396 321,957,363

Development,

Mining,

Agriculture,

Land Transportation,

Printing and

Industry

PT Perdana Kencana Mandiri Jakarta Industry, 99.75% -- -- 139,940,484 139,940,484

Development,

Trading,


Workshop,

Printing,

Agriculture,

Mining

and Services

PT Multiselaras Anugerah Tangerang Development, 99.99% -- -- 118,439,411 118,439,411

Trading

and Services

PT Nusa Medika Perkasa Jakarta Healthcare -- 59.69% -- 898,583,214 880,961,690

PT Siloam Graha Utama and Subsidiary Jakarta Trading, 99.99% -- -- 175,392,598,905 174,600,329,936

Development,


and Services

PT East Jakarta Medika Bekasi Healthcare -- 79.84% 2002 175,392,598,905 174,600,329,936

PT Guchi Kencana Emas and Subsidiary Jakarta Development 99.97% -- -- 102,403,227,786 108,844,185,130

and Services

PT Golden First Atlanta Jambi Healthcare and -- 83.00% 2008 102,386,079,755 108,824,482,220

Pharmacy

PT Prawira Tata Semesta and Subsidiary Jakarta Trading, 99.98% -- -- 211,240,463,227 180,366,373,950

Development,

Industry,

Mining,


Agriculture,

Printing,

Workshop and

Services except

Services of Legal

and Tax

PT Balikpapan Damai Husada Balikpapan Healthcare -- 79.61% 2007 174,000,276,556 153,184,763,268

including

Hospital

Clinic,

Health Centre,

Polyclinic and

Other related

Services

PT Siloam Emergency Services Tangerang Healthcare 99.99% -- 2013 1,391,968,353 1,000,000,000

PT Medika Harapan Cemerlang Indonesia Tangerang Trading, 99.99% -- 2013 2,281,053,348 600,000,000

Industry

and Services

PT Pancawarna Semesta and Subsidiary Tangerang Trading, 99.99% -- -- 71,939,365,186 74,993,112,485

Development,

Printing

and Services

PT Diagram Healthcare Indonesia Depok Hospital services, -- 80.00% 2006 41,397,168,156 44,450,915,455

Clinic and

Policlinic,

Medical

Treatment Clinic

and

Other related

Services

PT Tirtasari Kencana Tangerang Trading, 99.99% -- -- 570,487,641 568,796,441

Development and

Services

PT Adamanisa Karya Sejahtera Jakarta Trading, 99.90% -- -- 1,000,000,000 1,000,000,000

Development,

Printing

and Services

PT Agung Cipta Raya Tangerang Healthcare 99.90% -- -- 1,000,000,000 1,000,000,000

including

Hospital

Clinic,

Health Centre,

Polyclinic and

Other related

Services

PT Bina Cipta Semesta Jakarta Healthcare 99.90% -- -- 1,000,000,000 1,000,000,000

including

Hospital

Clinic,

Health Centre,

Polyclinic and

Other related

Services

PT Brenada Karya Bangsa Tangerang Trading, 99.99% -- -- 600,000,000 600,000,000

Development,

Printing

and Services

PT Harmoni Selaras Indah Tangerang Trading, 99.99% -- -- 600,000,000 600,000,000

Development,

Printing

and Services

Subsidiary Total Assets









PT Krisolis Jaya Mandiri Tangerang Healthcare 99.99% -- -- 600,000,000 600,000,000

including

Hospital

Clinic,

Health Centre,

Polyclinic and

Other related

Services

PT Kusuma Bhakti Anugerah Tangerang Real Estate, 99.99% -- -- 7,000,000,000 7,000,000,000

Industry,

Printing

Agribusiness,

Services and

Transport

PT Kusuma Primadana and Subsidiaries Tangerang Trading, 99.99% -- -- 105,527,421,830 85,235,136,940

Development,

Printing

and Services

PT Adijaya Buana Sakti and Subsidiaries Jakarta Services, -- 80.00% -- 105,517,546,830 85,224,461,940

Development,

Trading,

Workshop,

Land

Industry ,

Printing

and Agriculture

PT Siloam Sumsel Kemitraan Tangerang Trading, -- 70.00% -- 16,000,000,000 16,000,000,000

Development

and Services

Healthcare

PT RS Siloam Hospital Sumsel Palembang Healtcare include -- 88.00% 2012 122,117,649,885 101,823,764,995

(d/h PT Karyatama Indah Sentosa) Hospital

Clinical,

and

Health Center,

Polyclinic and

Other Related

Service

PT Mega Buana Bhakti Tangerang Trading, 99.99% -- -- 6,000,000,000 6,000,000,000

Development,

Real Estate,

Industry,

Printing,

Agribusiness,

Services and

Transport

PT Optimum Karya Persada Jakarta Services, 99.90% -- -- 1,000,000,000 1,000,000,000

Development,

Trading,

Workshop,

Land

Industry,

Printing

and Agriculture

PT Rosela Indah Cipta Tangerang Trading, 99.99% -- -- 600,000,000 600,000,000

Development,

Printing

and Services

PT Sembada Karya Megah Tangerang Trading, 99.99% -- -- 600,000,000 600,000,000

Development,

Printing

and Services

PT Taruna Perkasa Megah Tangerang Trading, 99.99% -- -- 600,000,000 600,000,000

Development,

Printing

and Services

PT Tataka Bumi Karya Tangerang Trading, 99.99% -- -- 600,000,000 600,000,000

Development,

Printing

and Services

PT Tataka Karya Indah Tangerang Trading, 99.99% -- -- 600,000,000 600,000,000

Development,

Printing

and Services

PT Trijaya Makmur Bersama Tangerang Trading, 99.99% -- -- 600,000,000 600,000,000

Development,

Printing

and Services

PT Visindo Galaxi Jaya Tangerang Trading, 99.99% -- -- 5,000,000,000 5,000,000,000

Development,

Real Estate,

Industry,

Printing,

Agribusiness,

Services

and Transport

PT Tunggal Pilar Perkasa and Subsidiary Tangerang Trading, 99.99% -- -- 600,000,000 --

Development,

Real Estate,

Industry,

Printing,

Agribusiness,

Services

and Transport










PT Siloam Medika Cemerlang Tangerang Trading, 75.00% -- -- 600,000,000 --

Development,

Real Estate,

Industry,

Printing,

Agribusiness,

Services

and Transport

PT Mahkota Buana Selaras Tangerang Trading, 99.99% -- -- 600,000,000 --

Development,

Real Estate,

Industry,

Printing,

Agribusiness,

Services

and Transport


On March 26, 2012, the Company acquired 99.99% ownership in PT Pancawarna Semesta (PWS), with acquisition cost of Rp 99,999,000. At the acquisition date, PWS has not yet started operation and therefore, it was recorded as an asset acquisition. Based on deed No. 80 dated March 31, 2012, made in the presence of Siti Pertiwi Henny Singgih, SH, Notary in Jakarta, PT Pancawarna Semesta (PWS) acquired 80% ownership in PT Diagram Healthcare Indonesia (DHI), with acquisition cost of Rp 58,752,000,000. This transaction is a business combination acquisition (see Note 28). PT DHI commenced commercial operations in 2006. On May 30, 2012, the Company acquired 99.99% ownership in PT Bina Cipta Semesta (BCS) with acquisition cost of Rp 999,000,000. At the acquisition date, BCS had not yet started operations and therefore, it was recorded as an asset acquisition. On May 30, 2012, the Company acquired 99.99% ownership in PT Kusuma Bakti Anugerah (KBA) with acquisition cost of Rp 6,999,900,000. At the acquisition date, KBA had not yet started operations and therefore, it was recorded as an asset acquisition. On May 30, 2012, the Company acquired 99.99% ownership in PT Mega Buana Bhakti (MBB) with acquisition cost of Rp 5,999,900,000. At the acquisition date, MBB had not yet started operations and therefore, it was recorded as an asset acquisition. On May 30, 2012, the Company acquired 99.99% ownership in PT Visindo Galaxi Jaya (VGJ) with acquisition cost of Rp 4,999,900,000. At the acquisition date, VGJ had not yet started operations and therefore, it was recorded as an asset acquisition.

On May 30, 2012, the Company acquired 99.99% ownership in PT Agung Cipta Raya (ACR) with acquisition cost of Rp 999,000,000. At the acquisition date, ACR had not yet started operations and therefore, it was recorded as an asset acquisition. On May 30, 2012, the Company acquired 99.99% ownership in PT Adamanisa Karya Sejahtera (AKS) with acquisition cost of Rp 999,000,000. At the acquisition date, AKS had not yet started operations and therefore, it was recorded as an asset acquisition. On May 30, 2012, the Company acquired 99.99% ownership in PT Optimum Karya Persada (OKP) with acquisition cost of Rp 999,000,000. At the acquisition date, OKP had not yet started operations and therefore, it was recorded as an asset acquisition. PT Krisolis Jaya Mandiri was established under deed No. 1 dated June 1, 2012 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-32835.AH.01.01.Tahun 2012 dated June 15, 2012.






PT Taruna Perkasa Megah was established under deed No. 2 dated June 1, 2012 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-32836.AH.01.01.Tahun 2012 dated June 15, 2012. PT Trijaya Makmur Bersama was established under deed No. 3 dated June 1, 2012 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-32448.AH.01.01.Tahun 2012 dated June 14, 2012. On June 4, 2012, the Company acquired 99.99% ownership in PT Tirtasari Kencana (TK) with acquisition cost of Rp 599,999,000. At the acquisition date, TK had not yet started operations and therefore, it was recorded as an asset acquisition.

PT Tataka Karya Indah was established under deed No. 11 dated June 4, 2012 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-32573.AH.01.01.Tahun 2012 dated June 14, 2012.

PT Sembada Karya Megah was established under deed No. 8 dated June 4, 2012 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., a notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-32890.AH.01.01.Tahun 2012 dated June 15, 2012.

PT Brenada Karya Bangsa was established under deed No. 9 dated June 4, 2012 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-32744.AH.01.01.Tahun 2012 dated June 15, 2012.

PT Tataka Bumi Karya was established under deed No. 10 dated June 4, 2012 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-32745.AH.01.01.Tahun 2012 dated June 15, 2012.

PT Rosela Indah Cipta was established under deed No. 12 dated June 4, 2012 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-32746.AH.01.01.Tahun 2012 dated June 15, 2012.

PT Harmoni Selaras Indah was established under deed No. 13 dated June 4, 2012 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-32893.AH.01.01.Tahun 2012 dated June 15, 2012.

On June 21, 2012, the Company acquired 99.90%ownership in PT Kusuma Primadana (KP) with acquisition cost of Rp 99,999,000. KP has 80% ownership in PT Adijaya Buana Sakti (ABS). At the acquisition date, KP had not yet started operations and therefore, it was recorded as an asset acquisition.

On September 10, 2013, the Company acquired 99.99% ownership in PT Tunggal Pilar Sejahtera from PT Primakreasi Propertindo and PT Grand Villa Persada at the acquisition cost of Rp 599,000,000. The acquisition transactions were recorded in accordance with PSAK No. 38 (Revised 2012) “Business Combination for Entities Under Common Control”. There was no net difference between the purchase price and the proportionate of stocks on net book value of assets of the subsidiary acquired.






On September 11, 2013, the Company acquired 99.90% ownership in PT Mahkota Buana Selaras (through direct ownership of 99.99% and 0.01% indirect ownership in PT Tunggal Pilar Sejahtera) at the acquisition cost of Rp 600,000,000. The acquisition transactions were recorded in accordance with PSAK No. 38 (Revised 2012) “Business Combination for Entities Under Common Control”. There was no net difference between the purchase price and the proportionate of stocks on net book value of assets of the subsidiary acquired. PT Siloam Medika Cemerlang was established under deed No. 21 dated September 11, 2013 made in the presence of Sriwi Bawana Nawaksari, S.H., M.Kn., a notary in Tangerang. The deed of establishment was approved by the Minister of Law and Human Rights Republic of Indonesia with decree No. AHU-49584.AH.01.01.Tahun 2013 dated September 24, 2013.

1.d. Board of Commissioners, Directors, Employees and Audit Committee Based on Notarial Deed No. 369 dated April 24, 2013, made in the presence of, Dr Irawan Soerodjo, S.H, M.Si, notary in Jakarta, which has been accepted by the Ministry of Law and Human Rights of the Republic of Indonesia through notification No. AHU-AH.01.10-15919 dated April 26, 2013, Notarial Deed No. 34 dated December 20, 2012, made in the presence of Sriwi Bawana Nawaksari, S.H, M.Kn, notary in Tangerang, which has been accepted by Ministry of Law and Human Rights of the Republic of Indonesia through notification No. AHU-AH.01.-07152 dated February 28, 2013, the composition of the Board of Commisioners and Directors as of September 30, 2013 and December 31, 2012, are as follows:

September 30, 2013 December 31, 2012

Commissioners

President Commissioner Ketut Budi Wijaya Christoper James Williams

Commissioner Theo Leo Sambuaga Theo Leo Sambuaga

Agus Benjamin Maruarar Sirait

-- Farid Harianto

-- Muladi

Independent Commissioner Farid Harianto --

Muladi --

Jonathan Limbong Parapak --

Directors

President Director Gershu Chandy Paul Gershu Chandy Paul

Director Grace Frelita Indradjaja Grace Frelita Indradjaja

Sugianganto Budisuharto Sugianganto Budisuharto

Romeo Fernandez Lledo Romeo Fernandez Lledo

George Mathew George Mathew

Anang Prayudi *) Anang Prayudi

*) Unaffiliated Director

The audit committee composition as of September 30, 2013 are as follows:

Audit Committee

Chairman Farid Harianto

Members Lie Kwang Tak

Siswanto Pramono

As of September 30, 2013, The Company’s Corporate Secretary is Sugianganto Budisuharto and head of internal audit is Gunawan HP, effective June 5, 2013.

As of September 30, 2013 and December 31, 2012, the Company and its Subsidiaries (the Group) have 4,825 and 3,551 permanent employees, respectively (unaudited).






2. New Financial Accounting Standards Indonesian Financial Accounting Standards (SAK) are Standards and Interpretations issued by the Financial Accounting Standards Board of the Indonesian Institute of Accountants (DSAK-IAI) and the regulation of capital market regulator, that is the Indonesia Financial Services Authority (OJK) (or formerly called Bapepam-LK), for the entity under its supervision. The following are new SAK effective in the current period:

Statements and Interpretations issued by DSAK-IAI The following is statements (PSAK), Interpretations (ISAK) and the Statements of Revocation (PPSAK) that have been issued by DSAK-IAI applied to the financial statements which begins on or after January 1, 2013:

• Adjustments of PSAK No. 60: Financial Instruments and Disclosures. • PSAK No. 38 (Revised 2012) : Business Combination for Entities Under Common Control. • ISAK No. 21 : Real Estate Construction Agreement. • PPSAK No. 7 : Revocation of PSAK No. 44: Accounting for Real Estate Development Activity paragraphs 1-46,

49-55 and 62-64.

• PPSAK No. 10 : Revocation of PSAK No. 51: Accounting for Quasi-Reorganization.

The application of ISAK No. 21 and PPSAK No. 7 above have been postponed until a date to be determined later, according to the announcement letter of DSAK-IAI No. 0643/DSAK/IAI/IX/2012 dated September 21, 2012. Whereas PSAK No. 60, PSAK No. 38 and PPSAK No. 10, did not have a material impact to the consolidated financial statements.

3. Summary of Significant Accounting Policies

3.a. Compliance with the Financial Accounting Standards The Group’s interim consolidated financial statements have been prepared and presented in accordance with the Indonesian Financial Accounting Standards which include the Statements and the Interpretations as issued by DSAK-IAI and Regulation of Bapepam-LK No. VIII.G.7 regarding the “Guidance of Financial Statements Presentation” as set forth in decree No. KEP-347/BL/2012 regarding the amendment to Regulation No. VIII.G.7 and other accounting policies which prevailing in the Capital Market.

3.b. Basis of Measurement and Preparation of Consolidated Financial Statements The consolidated financial statements have been prepared on a going concern assumption and on the accrual basis, except for the consolidated statements of cash flows which used the cash basis. The basis of measurement in the preparation of these consolidated financial statements is the historical cost principle, except for certain accounts that were measured using other basis, as described in the respective accounting policy.

The consolidated statements of cash flows have been presented by classifying the activities into operating, investing and financing. The cash flows from operating activities were prepared using the direct method.

The functional currency of the Group is Indonesian Rupiah. Transactions are recorded using the functional currency. The reporting currency used in the preparation of these interim consolidated financial statements is the Indonesian Rupiah.

3.c. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries (including special purpose entities) either directly or indirectly controlled, as presented in Note 1.c.

Control also exists when the parent entity owns half or less of the voting power of an entity when there is: a. power over more than half of the voting rights by virtue of an agreement with other investors; b. power to govern the financial and operating policies of the entity under a statute or an agreement;






c. power to appoint or remove the majority of the members of the board of directors or equivalent governing body and control of the entity is by that board or body; or

d. power to cast the majority of votes in the meetings of the board of directors or equivalent governing body and control of the entity is by that board or body.

The existence and effect of potential voting rights that can be implemented or converted on the date of the reporting period should be considered when assessing whether an entity has the power to govern financial and operating policies of another entity. The entities are consolidated from the date on which control was transferred to the Company and are no longer consolidated when the Company ceases to have control. Control is obtained when the entity has the power to govern the financial and operating policies of another entity to obtain the benefits of the entity activity.

The consolidated financial statements have been prepared on the basis of entity concept. All significant related intercompany accounts, transactions and profits among the consolidated companies have been eliminated to reflect the financial position and result of operations as a whole entity. The changes in the Company’s ownership interest in a subsidiary that do not result to a loss of control are accounted for as equity transactions and attributed to the owners of the parent.

All major transactions and inter-company account balances (including significant unrealized gain or loss) have been eliminated.

Non-controlling interest reflects the profit or loss and net assets of subsidiaries portion that are not attributable directly or indirectly to the parent entity, which is presented in the consolidated statements of comprehensive income and as equity in the consolidated statements of financial position, separated from portion which is attributable to parent entity.

3.d. Foreign Currency Transactions

A foreign currency is a currency other than the functional currency. Transactions during the current period using foreign currencies were recorded at the spot rate prevailing on the transaction date.

At the reporting date, transactions in foreign currencies were translated using the following closing rates:


Rp Rp

1 USD 11,613 9,670

1 EUR 15,671 12,810

1 SGD 9,234 7,907

Gains and losses from foreign exchange differences arising from foreign currency transactions into Rupiah were charged to profit or loss.

Whereas the non-monetary assets and liabilities denominated in foreign currencies were measured using the exchange rate on the transaction date and monetary assets and liabilities denominated in foreign currencies were measured at fair value using the exchange rate on the date of fair value measurement.

3.e. Cash and Cash Equivalent Cash consist of cash on hand and in banks, are not used as collateral and not restricted.

Cash equivalent consists of time deposits certificates with maturities of not more than or equal to three (3) months from the date of placement and are not restricted.






3.f. Transactions with Related Parties In its normal business, the Company enters into transactions with related parties. A related party is a person or entity that is related to the Company (referred to as the “reporting entity”), which includes: a) A person or a close member of that person’s family is related to a reporting entity if that person:

(i) has control or joint control over the reporting entity; (ii) has significant influence over the reporting entity; (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting

entity.

b) An entity is related to the reporting entity if any of following conditions applies: (i) The entity and the reporting entity are members of the same group (which means that each parent,

subsidiary and fellow subsidiary is related to the others); (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a

member of a group of which the other entity is a member); (iii) Both entities are joint ventures of the same third party; (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity

or an entity related to the reporting entity. If the reporting entity is managing the plan, the sponsoring entity is also related to the reporting entity;

(vi) The entity is controlled or jointly controlled by a person identified in (a); or (vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key

management personnel of the entity (or a parent of the entity).

3.g. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined by the average method. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling cost. The Company determines the allowance for inventory obsolescence based on a review of the status of its inventory at the end of period.

3.h. Prepaid Expenses Prepaid expenses are amortized over the period benefitted using straight line method.

3.i. Property and Equipment At initial recognition, property and equipment are measured at acquisition cost.

After initial recognition, property and equipment are accounted for using the cost model which is carried at cost less accumulated depreciation and accumulated impairment losses, if any, except for land which is not depreciated and is carried at cost.

Depreciation is computed by using the straight line method based on the estimated useful lives of the assets as follows: Years Building, Infrastructure and Renovations 4 - 20 Equipment and Medical Supplies 4 - 10 Furniture, Fixtures and Office Equipment 5 Vehicles 5

The cost of repairs and maintenance is charged to profit or loss as incurred while significant renovations and addition which add estimated useful life or future economic benefits are capitalized. When assets are retired or otherwise disposed of, the cost and the related accumulated depreciation and accumulated impairment loss, if any, are removed from the accounts and any resulting gains or losses are charged to operations for the relevant period.






Accumulated construction costs of property and equipment are capitalized as "Construction in Progress " and recorded in "property and equipment" account until the construction process is completed. These costs are reclassified to property and equipment when the construction are completed.

The carrying amount of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is credited or charged to operations in the period the asset is derecognized.

Management has reviewed the estimated useful lives, depreciation methods and residual values of the propery and equipment, at each reporting period. Necessary adjustments made prospectively

3.j. Leases The determination of whether an arrangement is a lease agreement or lease agreement containing the substance of the agreement based on the inception date and whether the fulfillment of the agreement depends on the use of an asset and the agreement provides a right to use the asset.

Leases are classified as finance leases if the lease substantially transferred all the risks and benefits related to ownership of the asset. Leases are classified as operating leases if the lease did not substantially transfer all the risks and benefits related to ownership of the asset.

Group as Lessee At the beginning of the lease term, the Group recognizes finance leases as assets and liabilities in the consolidated statements of financial position at fair value of the leased property or the present value of the minimum lease payments, if the present value is lower than the fair value. The valuation of a lease is determined at the initial contract. The discount rate used in calculating the present value of the minimum lease payments is the implicit interest rate of the lease, if practicable. If not, the discount rate used is the level of the lessee's incremental borrowing rate applied. Initial direct costs of the lessee are capitalized and recognized as an asset. Leased asset depreciation policy is consistent with the policy for the Group’s own property and equipment.

Under an operating lease, the Group recognizes lease payments as an expense on a straight-line basis over the lease term.

Group as lessor The Group recognizes lease receivables in the consolidated statements of financial position as a net lease investment. Collection of leases are considered as payments of lease principal and finance lease income. Recognition of finance lease income is based on a pattern reflecting a constant periodic rate of return on the Group's net investment as lessor in a finance lease.

The Group is required to present assets subject to operating leases in its consolidated statements of financial position according to the nature of the asset. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized as an expense over the lease term on the same basis as operating rental income. Contingent rents, if any, are recognized as revenue in the periods in which they are earned. Lease income from operating leases is recognized as income on a straight-line basis over the lease term.

Sale and Leaseback A sale and leaseback transaction involves the sale of an asset and leasing back the same asset. If a sale and leaseback transaction is a finance lease, any excess of sales proceeds over the carrying value is not immediately recognized as income in the consolidated financial statements of a seller (lessee) but is deferred and amortized over the lease period.






If a sale and leaseback transaction is an operating lease, and it is clear that the transaction is established at fair value, any profit or loss is recognized immediately. If the sales price is below fair value, any profit or loss is recognized immediately except if the loss is compensated by future lease payments below market price where it is deferred and amortized in proportion to the lease payments over the period for which the asset is expected to be used.

3.k. Impairment of Non-Financial Assets The amount of recoverable assets shall be estimated at the time of the events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognized in the current period.

The impairment loss which was recognized in prior periods is reversed if and only if there is a change in the estimates used to determine the assets recoverable amount since the last impairment loss was recognized. Recoverable amount can be recognized only by reversing an amount which has been recognized.

3.l. Business Combination The Group accounts for each business combination by applying the acquisition method. The consideration transferred for an acquisition is measured at the aggregate of the fair values of assets given-up, liabilities assumed and equity instruments issued by the Company. Acquisition-related costs are recognized in the profit or loss as incurred. The Group recognizes the identifiable assets acquired and liabilities taken over at their fair value on the acquisition date, except for the following:

• Deferred tax assets or liabilities that are related to assets acquired and liabilities taken over in business combination are recognized and measured in accordance with PSAK No. 46 (Revised 2010), “Income Taxes”.

• Liabilities (or assets, if any) related to employee benefit arrangements from the acquiree are recognized and measured in accordance with PSAK No. 24 (Revised 2010), “Employee Benefits”.

• Liabilities or equity instruments related to the replacement of an acquiree’s share-based payment awards are measured in accordance with PSAK No. 53 (Revised 2010), “Share-based Payment”.

• Non-current assets (or disposal groups) acquired which are classified as held for sale are measured in accordance with PSAK No. 58 (Revised 2009), “Non-current Assets Held for Sale and Discontinued Operations”.

3.m. Intangible Assets

Goodwill Goodwill arising in a business combination is recognized as an asset on the date that control is acquired. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree over the net of the acquisition date amounts of the identifiable assets acquired and the liabilities taken over. Goodwill is not amortized but is reviewed for impairment at least annually or more frequently when there is an indication that the goodwill may be impaired. For the purpose of impairment testing, goodwill is allocated to each of the cash-generating units expected to benefit from the synergies of the combination. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit prorated on the basis of the carrying amount of each asset in the unit. An impairment loss is charged to the consolidated statements of comprehensive income for the current period. An impairment loss recognized for goodwill is not reversed in the subsequent period.






The negative goodwill that resulted from bargain purchases is recognized as gain in profit or loss. The gain is attributed to the acquirer.

If goodwill has been allocated to a cash-generating unit and certain operations on the cash-generating unit is stopped, the goodwill associated with discontinued operations are included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill removed is measured based on the relative value of discontinued operations and share of the cash-generating unit retained. Cost of Software Software costs are initially recognized at cost or amounts attributable to the assets at the time of acquisition. Acquisition cost of accounting software is deferred and amortized using the straight line method based on the estimated economic useful life of five (5) years.

3.n. Employee Benefits Short-term employee benefits Short-term employee benefits are recognized as wages and salaries for rendered services to the Company during the accounting period. Post-employment Benefits The Company has a defined benefit pension plan without funding for all its permanent employees and have computed and recorded a provision for employee post-employment benefits in accordance with the Labour Law No. 13/2003 and PSAK No. 24 (Revised 2010), "Employee Benefits". Post-employment benefits are recognized at a discounted amount when the employees have rendered services to the Company during the accounting period. Liabilities and expenses are measured using actuarial techniques which include constructive obligation that arises from the Company’s common practices. In calculating such liabilities, the benefit must be discounted using the projected unit credit method. Past service cost is recognized in profit or loss when the benefit becomes vested and recognized as an expense using the straight-line method for the average period of vested benefit. Accumulated unrecognized actuarial gain (loss) that is more than 10% of the present value of defined benefit liabilities are amortized using the straight line method over the remaining projected average service period of employees in the programme.

3.o. Difference in Value from Restructuring Transactions between Entities Under Common Control The restructuring transactions between entities under common control, such as transfers of assets, liabilities, shares or other ownership instruments by re-organizing entities within the same group, do not represent changes of ownership in terms of economic substance, and thus, should not result in a gain or loss for the group of companies as a whole or for the individual entity in the groups. Since restructuring transactions with entities under common control do not result in changes in term of economic substance of ownership in transferred assets, liabilities or other ownership instruments, the transferred assets or liabilities (in legal form) should be recorded at book value in a manner similar to business combination transactions using the pooling of interest method. The difference between transfer price and book value does not represent goodwill. Such difference is recorded in the account “Difference in Value from Restructuring Transactions between Entities under Common Control” and is presented in additional paid in capital as part of equity.

In addition, this account cannot be recognized as a realized gain or loss or reclassified to retained earnings.






3.p. Revenue and Expense Recognition Revenue is recognized when medical services are rendered or when medical supplies are delivered to patients.

Expenses are recognized when incurred.

3.q. Income Tax Current income tax is calculated from taxable income, the earnings that have been adjusted to the appropriate tax rules. Amendments to taxation liabilities are recorded when an assessment is received or, if appealed against, when the results of the appeal are determined.

Current tax assets and current tax liabilites are offset if, and only if, the entity: 1) has a legally enforceable right to set off the recognised amount; and 2) intends to settle in net basis, or realises and settles the asset and liability simultaneously.

All temporary differences between the tax bases of assets and liabilities and their carrying value for financial reporting purposes are recognized as deferred tax using the balance sheet liability method. Currently or substantially enacted tax rates are used to determine deferred income tax.

Deferred tax assets and deferred tax liabilites are offset if, and only if, the entity: 1) has a legally enforceable right to set off current tax asset against current tax liability; and 2) the deferred tax asset and the deferred tax liability relate to income taxes levied by the same tax authority

on the same taxable entity.

3.r. Financial Instruments Financial Assets The Group classified its financial assets into four (4) categories, as follows (i) financial assets measured at fair value through profit or loss (FVTPL), (ii) loans and receivables, (iii) held-to-maturity financial assets (HTM financial assets) and (iv) available-for-sale financial assets (AFS financial assets). The classification depends on the purpose for which the financial assets were acquired. The management determines the classification of its financial assets at initial recognition.

(i) Financial Assets at FVTPL Financial assets which are recognized as FVTPL are financial assets for trading. Assets are classified in this category when they are held principally for the purpose of selling or repurchasing in the near term and there is evidence of a recent actual pattern of short-term profit taking. Derivatives are classified as trading assets, except when designated and effective as hedging instruments

At initial recognition, financial assets measured at FVTPL are measured at fair value. Transaction costs related to the acquistion are recognized in the current period profit or loss. Subsequent increase or decrease in fair value is recognized in profit or loss.

(ii) Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are initially recognized at fair value plus transaction costs and are subsequently measured at amortized cost using the effective interest rate method.

(iii) HTM Financial Assets HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that management has the positive intention and ability to hold to maturity, other than:






a. Investments which from initial recognition, were designated as financial assets measured at FVTPL; b. Investments which are designated as available-for-sale; and c. Investments that meet the definition of loans and receivables.

At initial recognition, HTM investments are recognized at fair value plus transaction costs and are subsequently measured at amortized cost using the effective interest rate method.

(iv) AFS Financial Assets AFS financial asset are non-derivative financial assets that are held during a certain period with the intention for sale in order to fulfill liquidity needs, changes in interest rates or foreign exchange, or those that are not classified as loans and receivables, investments that are classified as held-to-maturity or financial assets at fair value through profit or loss.

At initial recognition, available for sale financial assets are recognized at fair value plus transaction costs and subsequently measured at fair value with any gain or loss recognized as other comprehensive income, except for impairment loss and foreign exchange, until the derecognition of the financial assets.

Financial Liabilities and Equity Instruments

Classification as debt or equity Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered into and the definitions of financial liabilities and equity instruments.

Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments are recorded as the proceeds received, net of direct issue costs. Share issuance costs are presented as part of equity under "Additional Paid-in Capital – Net”.

Financial Liabilities Financial liabilities are classified into the categories of (i) financial liabilities measured at fair value through profit or loss (FVTPL) and (ii) financial liabilities measured at amortized cost.

(i) Financial liabilities measured at FVTPL Financial liabilities at fair value through profit or loss are the financial liabilities that are designated for trading. Financial liabilities are classified for trading if acquired primarily for the purpose of selling or repurchasing in the near term and there is evidence of a pattern of short-term profit taking. Derivatives are classified as trading liabilities except those effectively designated as hedging instruments.

At initial recognition, financial liabilities at FVTPL are recognized at fair value. Transaction costs in connection with to the acquisition are recognized in profit or loss for the period; subsequent increase or decrease in fair value are recognized in the profit or loss.

(ii) Financial Liabilities Measured at Amortized Cost Financial liabilities not classified as financial liabilities at fair value through profit or loss are categorized and measured using amortized cost.

At initial recognition, financial liabilities measured at amortized cost are recognized at fair value net of transaction costs and subsequently measured at amortized cost using the effective interest rate method.

Impairment of Financial Assets Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For listed and unlisted equity investments classified as AFS, a significant or prolonged decline in the fair value of the equity investment below its cost is considered to be an objective evidence of impairment.






Some objective evidence for impairment value are as follows:

• significant financial difficulty of the issuer or counterparty; or

• default or delinquency in interest or principal payments; or

• it becoming probable that the borrower will enter bankruptcy or financial reorganization.

For certain categories of financial assets, such as receivables, the impairment value of assets are assessed individually. Objective evidence of impairment for a portfolio of receivables could include the Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period and observable changes in the national or local economic conditions that correlate with default on receivables

For financial assets carried at amortized cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

The carrying amount of the financial asset is directly reduced by the amount of impairment loss for all financial assets with the exception of receivables, where the carrying amount is reduced through the use of an allowance account. When a receivable is considered uncollectible, it is written-off against the allowance account. Subsequent recoveries of amounts previously written-off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in the profit or loss.

When an AFS financial asset is considered to be impaired, cumulative gains or losses previously recognized in equity are reclassified to the profit or loss.

With the exception of AFS equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment on the date of the impairment is reversed does not exceed the amortized cost had there been no impairment recognized.

In respect of AFS equity securities, impairment losses previously recognized in the consolidated statement of comprehensive income are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognized directly in equity.

Reclassification of Financial Assets Reclassification is only permitted in rare circumstances and where the asset is no longer held for the purpose of selling in the short-term. In all cases, reclassification of financial assets is limited to debt instruments. Reclassifications are accounted for at the fair value of the financial asset on the date of reclassification.

Offsetting of Financial Instruments Financial assets and liabilities are offset and the net amount is reported in the consolidated statements of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

Derecognition of Financial Assets and Liabilities The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes their retained interest in the asset and an associated liability for the amounts they may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.






The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired.

Effective Interest Method The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and others paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or, where appropriate, a shorter period to the net carrying amount on initial recognition.

Income is recognized on an effective interest basis for financial instruments other than those financial

instruments at FVTPL.

Fair Value Determination The fair value of financial assets and liabilities must be estimated for recognition and measurement or for disclosure purposes.

PSAK No. 60, “Financial Instruments: Disclosures” requires disclosure of fair value measurements by level of the following fair value measurement hierarchy: (i) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1) (ii) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either

directly (as prices) or indirectly (derived from prices) (level 2), and (iii) inputs for the asset or liability that are not based on observable market data (unobservable inputs)

(level 3).

The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Group is the current bid price, while ask price is used for financial liabilities. These instruments are included in level 1.

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as minimum as possible on estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

3.s. Earnings Per Share Earnings per share is computed by dividing income attributable to the parent by the weighted average number of common shares outstanding during the period.

Diluted earnings per share is computed considering other securities that potentially have a dilutive effect to ordinary shares outstanding during the reporting period.

3.t. Operating Segments Operating segments are identified based on internal reports on components of the Group that are regularly reviewed by the "operational decision maker" in allocating resources and assessing performance of the operating segments.

An operating segment is a component of an entity that engages in business activity in which operating results are evaluated regularly by management, and its financial information can be presented separately.

The Group evaluates operating segments based on the business activities of each hospital unit which is a strategic unit that promote products and services in different service areas. Products and services are managed separately because each unit hospital requires different market strategies and resources. Segment accounting policies are the same as described in the summary of significant accounting policies.






3.u. Significant Accounting Estimation and Justification The preparation of the consolidated financial statements in accordance with the Indonesian Financial Accounting Standards requires the management to make assumptions and estimates that could affect the carrying amounts of certain assets and liabilities at end of reporting period.

In the preparation of these interim consolidated financial statements, accounting assumptions have been made in the process of applying accounting policies that may affect the carrying amounts of assets and liabilties in the consolidated financial statements. In addition, there are accounting assumptions about the sources of estimation uncertainty at end of reporting period that could materially affect the carrying amounts of assets and liabilities in the subsequent reporting period.

The management periodically reviews them to ensure that the assumptions and estimates have been made based on all relevant information available on the date in which the consolidated financial statements have been prepared. Because there is inherent uncertainty in making estimates, the value of assets and liabilities to be reported in the future might differ from those estimates.

i. Significant Estimations and Assumptions

At the reporting date, the management has made significant assumptions and estimates which have the most significant impact to the carrying amount recognized in the consolidated financial statements are as follows: Allowance for Impairment of Accounts Receivable In general, the management analyzes the adequacy of the allowance for impairment based on several data, which include analyzing historical bad debts, the concentration of each customer's trade receivables, credit worthiness and changes in a given period of repayment. The analysis is carried out individually on a significant amount of accounts receivable, while the insignificant group of trade receivables is carried on the collective basis. At the reporting date, the carrying amount of trade receivables has been reflected at fair value and the carrying value may change materially in the subsequent reporting period. The change, however, will not be attributable to the assumptions and estimates made as of this reporting date.

Deferred Tax Assets Estimation Management considerations are needed to determine the amount of deferred tax recognized in the profit or loss and the amount recorded as deferred tax assets. Recognition is performed only if it is probable that the asset will be recovered in the form of economic benefits to be received in future periods, in which the temporary differences and tax losses can still be used. Management also considers the future estimated taxable income and strategic tax planning in order to evaluate its deferred tax assets in accordance with applicable tax laws and its updates. As a result, related to its inherent nature, it is likely that the calculation of deferred taxes is related to a complex pattern where assessment requires a judgment and is not expected to provide an accurate calculation. Estimated Useful Lives of Property and Equipment The Group makes a periodic review of the useful lives of property and equipment based on several factors such as physical and technical conditions and development of medical equipment technology in the future. The results of future operations will be materially influenced by the change in estimate as caused by changes in the factors mentioned above. Changes in estimated useful life of property and equipment, if any, are prospectively treated in accordance with PSAK No. 25 (Revised 2010), “Accounting Policies, Changes in Accounting Estimates and Errors”.






Post-employment Benefits The present value of post-employment benefits liability depends on several factors that are determined on an actuarial basis based on several assumptions. Assumptions used to determine the cost (income) include the discount rate. Changes in these assumptions will affect the carrying amount of post-employment benefits. The Group determines the appropriate discount rate at the end of the reporting period by the interest rate used to determine the present value of future cash outflows expected to settle an estimated liability. In determining the appropriate level of interest rates, the Group considers the interest rate of government bonds denominated in Rupiah that have a similar period to the corresponding period of the liability.

Another key assumption is partly determined by current market conditions during the period in which the post-employment benefits liability is resolved. Changes in the employee benefits assumption will impact recognition of actuarial gains or losses at the end of the reporting period.

Fair Value of Financial Instruments When the fair value of financial assets and liabilities recorded in the consolidated statements of financial position is not available in an active market, it is determined using valuation techniques including the use of mathematical models. Input for this model is derived from observable market data through the data available. When observable market data is not available, management judgment is required to determine the fair value. Such considerations include liquidity and volatility feedback model for derivative transactions and long-term discount rates, prepayments, and default rate assumptions. ii. Significant Consideration in the Determination of Accounting Policies The following considerations made by management in the application of accounting policies that have significant effect on the amount presented in the financial statements: Revenue Recognition – Doctors Fee Policy and billing system to patient is under one invoice for all charges consisting of doctor consultation fee, sale of drugs and others medical service rendered. The doctors consultation fee are accumulated and the applicable taxes are deducted and paid to the doctors monthly even if the billings to patients have not been collected in full amount. Based on this policy, the management of the Company believes that there is no agency relationship between the hospital and the doctors. Bills for medical services are recognized as revenue when the recognition criteria are met.






4. Cash and Cash Equivalent


Rp Rp

Cash on Hand 5,035,998,572 5,861,795,003

Cash in Banks

Related Party

Rupiah

PT Bank Nationalnobu Tbk 216,171,964,936 6,091,992,087

Third Parties

Rupiah

PT Bank CIMB Niaga Tbk 404,485,801,272 6,074,212,993

PT Bank Negara Indonesia (Persero) Tbk 19,966,849,512 15,336,141,877

PT Bank Central Asia Tbk 11,572,240,286 7,850,606,577

PT Bank Mandiri (Persero) Tbk 6,706,004,796 6,513,929,271

PT Bank Rakyat Indones ia (Persero) Tbk 2,083,247,060 2,641,442,348

Others (below Rp 1 Billion each) 831,783,516 536,615,434

Foreign Currencies

SGD


USD

PT Bank Negara Indonesia (Persero) Tbk 1,672,371,595 60,299,510

Others (below Rp 1 Billion each) 1,055,999,468 221,156,575

EURO

Others (below Rp 1 Billion each) 570,447,144 147,956,204

Subtotal 749,162,200,983 138,896,163,676

Time Deposits - Third Parties

Rupiah

PT Bank Negara Indonesia (Persero) Tbk 202,050,000,000 2,050,000,000


PT Bank Mandiri (Persero) Tbk 2,000,000,000 2,000,000,000

Subtotal 223,950,000,000 23,950,000,000

Total 978,148,199,555 168,707,958,679

Interest rates and maturity period of the time deposits are as follows:


Contractual Interest Rates per Annum 4.25% - 7.75% 4.25 % - 6.68 %

Maturity Period 5 - 30 Days 30 Days

There are no cash and cash equivalent pledged as collateral and restricted.






5. Trade Receivables


Rp Rp

Related Parties (see Note 11) 2,696,901,240 3,171,020,453

Third Parties

Enterprise 231,591,040,547 174,525,502,679

Individual 18,900,625,569 9,720,752,753

Credit Card 4,394,056,328 3,002,598,212

Others (below Rp 500 million each) 4,411,251,685 2,814,278,192

Subtotal 259,296,974,129 190,063,131,836

Less: Allowance for Impairment (8,734,609,448) (6,167,375,415)

Trade Receivables - Third Parties - Net 250,562,364,681 183,895,756,421

Trade Receivables - Net 253,259,265,921 187,066,776,874

The movements in allowance for impairment are as follows:


Rp Rp

Third Parties

Beginning Balance 6,167,375,415 4,145,600,398

Addition 2,675,109,173 2,021,775,017

Reversal (107,875,140) --

Ending Balance 8,734,609,448 6,167,375,415

All trade receivables are denominated in Rupiah.

Trade receivables of PT Golden First Atlanta, a subsidiary, are pledged as collateral for loans obtained from PT Bank Central Asia Tbk (see Note 18).

Based on management’s review of the individual account of the trade receivables at the end of the reporting date, there were impairment on certain trade receivables. Management has provided adequate allowance for impairment losses based on the Company's accounting policies.

Management believes that the allowance was made because the receivables cannot be collected and is adequate to cover possible losses from uncollectible accounts.

6. Other Current Financial Assets


Rp Rp

Other Current Financial Assets - Third Parties

Rental Receivables 3,219,923,286 1,740,687,915Champion Assets Return -- 3,042,268,061

Others 1,048,398,446 3,289,350,505

Total 4,268,321,732 8,072,306,481

Rental receivables represent receivables from retail tenants of the leased area in the hospital building.






Receivables from Champion Assets Return represents receivable from the shareholders of PT Diagram Healthcare Indonesia (DHI), a subsidiary, before DHI was acquired by the Company.

As of September 30, 2013 and December 31, 2012, the Company did not provide allowance for impairment on the receivables because management believes that all receivables are collectible.

7. Inventories


Rp Rp

Medicine 48,821,328,899 46,076,980,523

Medical Supplies 28,097,117,509 26,266,186,817

Others 3,557,306,007 3,008,564,538

Total 80,475,752,415 75,351,731,878 The Group’s inventory have been insured againts all forms of risk by PT Lippo General Insurance Tbk, a related party, amounting to Rp 79,463,383,739 and Rp 59,738,607,785 as of September 30, 2013 and December 31, 2012, respectively. The management believes that insurance coverage is adequate to cover possible losses of the insured assets.

The medicine and consumable goods of PT Golden First Atlanta, a subsidiary, are pledged as collateral for loans obtained from PT Bank Central Asia Tbk (see Note 18).

The amount of inventories charged to cost of sales for the nine (9) months period ended September 30, 2013 and for the years ended December 31, 2012 amounted to Rp 511,272,776,515 and Rp 440,201,800,472, respectively (see Note 25).

The management believes that there is no indication of impairment in the carrying value of the inventory as of September 30, 2013.

8. Taxes

a. Prepaid Tax Prepaid tax consist of income tax article 25 after deducting the estimated corporate income tax amounting to Rp 5,674,744,249.

b. Taxes Payable


Rp Rp

Income Tax

Article 4 (2) 959,730,987 1,000,677,494

Article 21 6,085,957,528 11,883,299,151

Article 23 426,024,306 232,125,472

Article 26 148,680,704 261,497,763

Article 25/29 -- 3,654,677,249

Value Added Tax 161,996,778 779,148,929

Total 7,782,390,303 17,811,426,058






c. Taxes Benefit (Expense)

2013 2012(9 Months) (9 Months)

Rp Rp

Current Tax (9,946,656,000) (16,001,185,500)

Deferred 304,136,825 (333,725,060)

Consolidated Tax Expenses-Net (9,642,519,175) (16,334,910,560)

Current Tax The calculation of estimated current tax expense and income tax of the Group are as follows:


Rp Rp

Profit Before Tax as Presented in the Interim

Consolidated Statements of Comprehensive Income 29,297,598,000 67,199,483,182

Less : Profit (Loss) Before Tax of Subsidiaries (20,087,066,966) 1,232,756,705

Profit Before Tax of the Company 49,384,664,966 65,966,726,477

Timing Differences:

Depreciation and Amortization Charges (18,478,831,933) (5,704,399,654)

Employee Benefits 11,815,883,316 4,581,970,132

Allowance for Impairment Losses 400,890,954 --

(6,262,057,663) (1,122,429,522)

Permanent Differences:

Entertainment and Donation 685,165,630 373,100,316

Income Already Subjected to Final Tax (3,288,141,745) (2,024,116,073)

Salary and Allowances Employees 1,813,762,973 1,515,940,358

Interest Income already Subjected to Final Tax (2,546,769,822) (434,513,287)

Others -- (269,966,000)

(3,335,982,964) (839,554,686)

Estimated Current Period Taxable Income 39,786,624,339 64,004,742,269

Rounded - off 39,786,624,000 64,004,742,000

Estimated Current Taxes - Company 9,946,656,000 16,001,185,500

Estimated Current Taxes - Subsidiaries -- --

Consolidated Current Tax Expenses 9,946,656,000 16,001,185,500

Less :

Prepayments of Income Tax

Article 23 (1,333,044) --

Article 25 (9,945,322,956) (14,892,044,501)

Estimated Corporate Tax Payable - Company -- 1,109,140,999

Estimated Corporate Tax Payable - Subsidiaries -- --

Estimated Consolidated Tax Payable -- 1,109,140,999






A reconciliation between profit before tax expense as presented in the interim consolidated statements of comprehensive income with the taxable income of the Company is as follows:

2013 2012


Rp Rp

Profit Before Income Tax as Presented in the Interim

Consolidated Statements of Comprehensive Income 29,297,598,000 67,199,483,182

Less : Profit (Loss) before Tax of Subsidiaries (20,087,066,966) 1,232,756,705

Profit before Tax of the Company 49,384,664,966 65,966,726,477

Current Prevailing Tax Rate 25% 12,346,166,242 16,491,681,619

Entertainment and Donation 171,291,408 93,275,079

Income Already Subjected to Final Tax (822,035,436) (506,029,018)

Salary and Allowances Employees 453,440,743 378,985,090

Interest Income already Subjected to Final Tax (636,692,456) (108,628,322)

Correction and Recovery of Deferred Tax (168,553,284) 33,484,856

Others -- (67,491,500)

Total of the Company Tax Expenses 11,343,617,217 16,315,277,804 Total of Company Income Tax Expenses

Deferred Tax Expense (Benefit) - Subsidiaries (1,701,098,042) 19,632,756 Deferred Tax - Subsidiaries

Total-Net Interim Consolidated Income Tax Expenses 9,642,519,175 16,334,910,560 Total of Income Tax Expenses

d. Deferred Tax

December 31, Charged Correction Deferred Tax December 31, Charged September 30,

2011 (Credited) to Deferred Liabilities 2012 (Credited) to 2013

Consolidated Tax from the Acquired Consolidated

Statement of Company Statement of

Comprehensive Comprehensive

Income IncomeDeferred Tax Assets Rp Rp Rp Rp Rp

The Company

Employee Benefits 14,439,372,857 918,155,306 -- -- 15,357,528,163 3,122,524,027 18,480,052,190

Depreciation of Property and Equipment 90,561,231 (2,742,155,393) -- -- (2,651,594,162) (4,619,707,983) (7,271,302,145)

Allowance for Impairment Losses 791,084,872 164,789,556 -- -- 955,874,428 100,222,739 1,056,097,167

15,321,018,960 (1,659,210,531) -- -- 13,661,808,429 (1,396,961,217) 12,264,847,212

Subsidiaries 1,922,722,817 714,987,841 8,768,393 -- 2,646,479,051 1,789,829,822 4,436,308,873

Total Deferred Tax Assets 17,243,741,777 (944,222,690) 8,768,393 -- 16,308,287,480 392,868,605 16,701,156,085

Subsidiaries

Deferred Tax Liability -- -- -- (6,653,250,000) (6,653,250,000) (88,731,780) (6,741,981,780)

9. Prepaid Expenses


Rp Rp

Rental 15,804,817,080 15,832,827,707

Insurance 2,213,189,413 566,885,569

Others (below Rp 500 millions each) 4,192,306,748 1,138,290,572

Total 22,210,313,241 17,538,003,848

Prepaid rent mainly relates to the lease of the land and building of Siloam Hospitals Lippo Cikarang from PT Graha Pilar Sejahtera (see Note 34.a).






10. Advances


Rp Rp

Advances for Purchase of Property and Equipment 28,306,827,426 141,743,826,536

Construction 128,837,440 9,439,593,907

Others (below Rp 500 Million each) 5,677,611,870 1,571,961,111

Total 34,113,276,736 152,755,381,554

Advances for purchase of property and equipment mainly represent the purchase of medical equipment for Siloam Hospitals. Advances for construction represent downpayment to suppliers related to the hospitals renovation.

11. Transactions and Balances with Related Parties

In its normal business transactions, the Company conducts business transactions with related parties as follows:

September 30, 2013 December 31, 2012 September 30, 2013 December 31, 2012

Rp Rp % %

Cash and Cash Equivalent

PT Bank Nationalnobu Tbk 216,171,964,936 6,091,992,087 8.07 0.38

Trade Receivables

Employee 4,276,106 1,253,220,859 0.00 0.08

Non-employee 2,692,625,134 1,917,799,594 0.10 0.12

Total 2,696,901,240 3,171,020,453 0.10 0.20

Due from Related Parties Non-Trade

Other (below Rp 1 billion each) 468,194,358 662,399,000 0.03 0.04

Total 468,194,358 662,399,000 0.03 0.04

Percentage to Total Assets/Liabilities

Due to Rela ted Parties Non-Trade

PT Lippo Karawaci Tbk 425,606,323,357 796,448,380,152 39.14 59.37

PT Primakreasi Propertindo 1,180,422,011 1,588,998,000 0.11 0.12

Other (below Rp 1 billion each) -- 749,246,407 -- 0.06

Total 426,786,745,368 798,786,624,559 39.25 59.55

2013 2012 2013 2012

(9 Months) (9 Months) (9 Months) (9 Months)

Rp Rp % %

Employee Benefit for Key Management

Short-Term Post-Employment Benefits

Directors 10,448,599,754 7,653,447,120 2.48 2.99

Commissioners -- -- -- --

Other Key Management -- -- -- --

10,448,599,754 7,653,447,120 2.48 2.99

Percentage to Total Operating Expenses

The loan obtained from PT Lippo Karawaci Tbk (LK) is non-interest bearing loan. This loan related to funding for expansion and acquisition of subsidiaries. On April 30, 2013, the Company entered into a loan agreement with LK. This agreement was effective from the signing of the agreement and will expire immediately when the Company repays the loan. It does not bear interest if fully paid by December 31, 2013.

The entire balance of the related party transactions are transactions denominated in Rupiah.






The relationship and nature of accounts/ transactions with related parties are as follows:

Related Parties Relationship Nature of Accounts/Transaction

PT Bank Nationalnobu Tbk Under common control Placement of current account PT Lippo Karawaci Tbk Ultimate parent entity Non-interest bearing and without maturity date of

loan, key management employee benefits and rental expense

PT Primakreasi Propertindo Member of the same group Non-interest bearing and without maturity date of loan and intercompany charges

Employees Employees Trade receivables, non-interest bearing and without maturity date of loan and intercompany charges

Non-employees Member of the same group Trade receivables

Trade receivables from related parties mainly represent healthcare services to the Company’s employees.

All related parties transactions are disclosed in the interim consolidated financial statements.

12. Other Non Current Financial Assets


Rp Rp

Deferred Charges 23,505,008,003 31,340,010,671Others (below Rp 500 millions each) 1,955,105,426 1,970,105,426

Total 25,460,113,429 33,310,116,097

Deferred charges represents expenses related to development of professional staff for operational planning of future hospitals.

13. Property and Equipment

Beginning Balance Addition Disposal Reclassification Ending Balance

Rp Rp Rp Rp Rp

Acquisition Cost

Direct Ownership

Land 42,179,077,300 -- -- -- 42,179,077,300

Building and Infrastructure 127,484,041,038 5,861,206,543 -- -- 133,345,247,581

Medical Equipment 905,404,656,735 366,104,348,174 7,571,079,015 34,518,674,217 1,298,456,600,111

Furniture, Fixtures and Office Equipment 217,750,864,022 94,772,797,880 208,681,380 (33,878,422,320) 278,436,558,202

Transportation Equipment and Vehicles 11,785,371,719 3,210,746,584 -- -- 14,996,118,303

Total Direct Ownership 1,304,604,010,814 469,949,099,181 7,779,760,395 640,251,897 1,767,413,601,497

Construction In Progress 46,073,901,730 11,079,999,647 54,657,125 (640,251,897) 56,458,992,355

Total Acquisition Cost 1,350,677,912,544 481,029,098,828 7,834,417,520 -- 1,823,872,593,852

Accumulated Depreciation

Direct Ownership

Building and Infrastructure 28,068,987,209 7,137,355,524 -- -- 35,206,342,733

Medical Equipment 340,628,942,578 111,492,668,483 4,626,731,359 16,202,105,891 463,696,985,593

Transportation Equipment and Vehicles 110,772,573,177 25,188,897,859 206,583,536 (16,202,105,891) 119,552,781,609

Total Direct Ownership 5,914,983,073 1,485,009,499 -- -- 7,399,992,572

Total Accumulated Depreciation

Direct Ownership 485,385,486,037 145,303,931,365 4,833,314,895 -- 625,856,102,507

Carrying Amount 865,292,426,507 1,198,016,491,345

2013 (9 Months)






Beginning Balance Addition Disposal Reclassification Ending Balance

Rp Rp Rp Rp Rp

Acquisition Cost

Direct Ownership

Land 10,309,700,000 31,869,377,300 -- -- 42,179,077,300

Building and Infrastructure 122,391,133,811 2,634,820,561 -- 2,458,086,666 127,484,041,038

Medical Equipment 524 ,877,127,570 315,079,111,902 1,525,884,081 66,974,301,344 905,404,656,735

Furniture, Fixtures and Office Equipment 163 ,944,813,420 47,379,200,737 -- 6,426,849,865 217,750,864,022

Transportation Equipment and Veh icles 7 ,317,397,319 3,878,259,400 -- 589,715,000 11,785,371,719

Total Direct Ownership 828,840,172,120 400,840,769,900 1,525,884,081 76,448,952,875 1,304,604,010,814

Construction In Progress 68 ,408,866,147 54,113,988,458 -- (76,448,952,875) 46,073,901,730

Total Acquisition Cost 897,249,038,267 454,954,758,358 1,525,884,081 -- 1,350,677,912,544

Accumulated Deprecia tion

Direct Ownership

Building and Infrastructure 19 ,744,119,196 8,324,868,013 -- -- 28,068,987,209

Medical Equipment 235 ,936,433,368 106,084,119,734 1,391,610,524 -- 340,628,942,578

Transportation Equipment and Veh icles 85 ,144,905,572 25,627,667,605 -- -- 110,772,573,177

Total Direct Ownership 4 ,167,595,534 1,747,387,539 -- -- 5,914,983,073

Total Accumulated Depreciation

Direct Ownership 344,993,053,670 141,784,042,891 1,391,610,524 -- 485,385,486,037

Carrying Amount 552,255,984,597 865,292,426,507

2012 (1 Year)

In 2012, the addition of property and equipment, included property and equipment of the acquired company (see Note 1.c) with a total acquisition value of Rp 48,037,384,860 and accumulated depreciation of Rp 21,476,460,307. As of September 30, 2013, construction in progress represents mainly of the development cost of the building of Siloam Hospitals Balikpapan with 95% completion and estimated to be completed in November 2013. Management believes there is no factor which will hinder the completion. Depreciation charges that were allocated in the consolidated statements of comprehensive income are as follows:

2013 2012


Rp Rp

Cost of Sales (see Note 25) 107,911,718,238 52,803,278,392

Operating Expenses (see Note 26) 37,392,213,127 32,824,219,876

Total Depreciation Charges 145,303,931,365 85,627,498,268

The disposal of the Group’s property and equipment are as follows:

2013 2012


Rp Rp

Acquisition Cost 7,834,417,520 227,216,582

Accumulated Depreciation (4,833,314,895) (132,543,005)

Carrying Value 3,001,102,625 94,673,577

Selling Price 701,907,125 44,130,996

Loss on Disposal of Property and Equipment (2,299,195,500) (50,542,581)






Land and building, infrastructure, machinery and tools and medical equipment of PT Balikpapan Damai Husada, a subsidiary, are pledged as collateral for loan obtained from Bank Pembangunan Daerah Kalimantan Timur (see Note 18).

Land and building, vehicles, furniture, fixtures and office equipment and tools and medical equipment of PT Golden First Atlanta, a subsidiary, are pledged as collateral for loan obtained from PT Bank Central Asia Tbk (see Note 18). The Group's property and equipment are insured against fire and other risks with the sum insured amounted to Rp 1,308,581,895,843 and Rp 593,004,074,559, resepectively, as of September 30, 2013 and December 31, 2012 by PT Lippo General Insurance Tbk, a related party. Management believes that insurance covarege is adequate to cover possible losses of insured assets.

The management believes that there is no impairment in the carrying value of property and equipment as of September 30, 2013.

14. Goodwill and Intangible Assets

a. Goodwill

Beginning Balance Addition Disposal Ending Balance

Rp Rp Rp Rp

Cost

Goodwill 61,561,559,783 -- -- 61,561,559,783

Accumulated Impairment

Impairment of Goodwill 7,143,144,198 -- -- 7,143,144,198

Carrying Amount 54,418,415,585 54,418,415,585

2013 (9 Months)


Rp Rp Rp Rp

Cost

Goodwill 113,310,513,753 9,251,046,030 61,000,000,000 61,561,559,783

Accumulated Impairment

Impairment of Goodwill 7,143,144,198 -- -- 7,143,144,198

Carrying Amount 106,167,369,555 54,418,415,585

2012 (1 Year)

The details of goodwill as of September 30, 2013 and December 31, 2012 are as follows:

Acquirer Share Acquisition in Year of Net Value

Acquisition Rp

PT Pancawarna Semesta PT Diagram Healthcare Indonesia 2012 9,251,046,030

The Company PT Prawira Tata Semesta 2011 14,146,465,217PT Prawira Tata Semesta PT Balikpapan Damai Husada 2011 27,480,578,103

The Company PT Guchi Kencana Emas 2011 3,540,326,235

Total 54,418,415,585

In 2012, deduction of goodwill was due to the obligation of PT Metropolis Propertindo Utama (MPU) as the seller to pay compensation to the Company (as acquirer) since the respective Net Profit After Tax (NPAT) of PT Guchi Kencana Emas (GKE) and PT Prawira Tata Semesta (PTS) as set forth in the purchase agreement of both companies was not achieved.






Based on an Agreement dated November 2, 2010, between the Company and MPU on the acquisition of PTS, MPU guaranteed that the NPAT of PT Balikpapan Damai Husada, a subsidiary of PTS, would amount to Rp 17,000,000,000 in 2011, and if the said NPAT did not materialize, which was the case, MPU would provide compensation amounting to Rp 41,000,000,000 to the Company. This compensation recorded as deduction of goodwill. Based on an Agreement dated October 26, 2010, between the Company and MPU on the acquisition of GKE, MPU guaranteed that the NPAT of PT Golden First Atlanta, a subsidiary of GKE, would amount to Rp 6,400,000,000 in 2011, and if the said NPAT did not materialize, which was case, MPU would provide compensation amounting to Rp 20,000,000,000 to the Company. This compensation recorded as a deduction of goodwill. b. Software


Rp Rp Rp Rp

Cost

Software 10,873,117,240 1,420,511,223 -- 12,293,628,463

Accumulated Amortization

Amortization of Software 4,130,903,131 1,285,531,915 -- 5,416,435,046

Carrying Amount 6,742,214,109 6,877,193,417

2013 (9 Months)


Rp Rp Rp Rp

Cost

Software 7,213,682,354 3,659,434,886 -- 10,873,117,240

Accumulated Amortization

Amortization of Software 2,720,429,852 1,410,473,279 -- 4,130,903,131

Carrying Amount 4,493,252,502 6,742,214,109

2012 (1 Year)

All of amortization expense is recorded as part of other expenses.

15. Trade Payables – Third Parties

This account consist of as follows:


Rp Rp

Rupiah

Suppliers 84,403,516,516 89,376,057,849

Professional Doctor Fee 78,955,612,432 66,150,580,103

Total 163,359,128,948 155,526,637,952






Payables to suppliers mainly represent payables to distributors and manufacturers of drugs and medical supplies as follows:

September 30, 2013 December 31, 2012Rp Rp

PT Enseval Putera Megatrading 9,438,413,312 9,147,294,571 PT Anugerah Pharmindo Lestari 9,243,487,567 10,476,367,072 PT Anugrah Argon Medica 7,253,888,393 6,521,392,283 PT Parit Padang Global 3,449,787,514 4,779,266,046 PT Binasan Prima 2,378,089,875 2,324,180,084 PT Dos Ni Roha 2,368,148,084 1,999,068,237 PT Mensa Binasukses 3,353,930,190 2,522,823,593 PT Antar Mitra Sembada 2,198,378,049 1,698,644,819 PT Parazelsus Indonesia 1,559,293,652 1,015,094,654 PT Tempo 1,256,012,248 1,611,920,251 PT Merapi Utama Pharma 1,224,833,909 1,920,076,448 PT Tawada Healthcare 1,037,813,792 1,114,899,768 PT Kebayoran Farma 1,033,084,447 1,226,415,628 Others 38,608,355,484 43,018,614,395

Total 84,403,516,516 89,376,057,849

There is no collateral given by the Group on these payables.

16. Other Current Financial Liabilities

This account consist of: September 30, 2013 December 31, 2012

Rp Rp

PT Elektra Setya Ekatama 51,788,309,192 --Deposits 12,636,930,546 5,739,595,421 Contractor Payable 711,615,786 2,839,661,625 Others (below Rp 500 million each) 9,501,346,350 18,345,647,225 Total 74,638,201,874 26,924,904,271

Deposits represents receipt of payment that have not been invoiced by the Company. Payable to PT Elektra Setya Ekatama (ESE) represents payable related to acquisition of medical equipment of Siloam Hospitals Simatupang amounted to Rp 170 billion. Contractor payables represents payable related to construction of hospital buildings and purchase of medical equipment.






17. Accrued Expenses

This account consist of:


Rp Rp

Share Issuance Costs (including USD 3,101,249) 45,949,390,225 --Contract Service 18,120,151,819 10,582,611,507 Cost of Sales 10,673,248,962 11,329,841,086 Rental 6,805,622,762 --Water and Electricity 6,599,293,707 4,678,504,462 Repair and Maintenance 5,100,420,564 2,218,357,625 Employees' Salary and Allowances 3,188,790,654 2,209,343,679 Others (below Rp 500 million each) 3,770,106,964 2,490,793,502

Total 100,207,025,657 33,509,451,861

18. Bank Loans


Rp Rp

Rupiah - Third Parties

Short-Term Bank Loan


Long-Term Bank Loans

Bank Pembangunan Daerah Kalimantan Timur 36,536,357,546 40,035,765,926


Subtotal 57,608,912,259 65,971,217,886

Less : Current Maturit ies (11,642,439,328) (11,218,103,419)

Bank Loans - Net of Current Maturities 45,966,472,931 54,753,114,467

Bank Pembangunan Daerah Kalimantan Timur Based on Credit Agreement No. 005/870/9200/KI.59/BPDKP/2008 dated February 25, 2008, PT Balikpapan Damai Husada (BDH), a subsidiary, obtained an investment credit facility (Non-PRK) with a maximum credit of Rp 50,000,000,000 and which bears interest at an annual rate of 11.5%. This loan was used to increase investment funds for financing the development of hospitals and repaying the Company’s loan obtained from PT Bank Mandiri Tbk. This loan will mature on February 25, 2019.

This facility is secured by collateral as follows:

• One (1) parcel of land with an area of 12,562 sqm including healthcare building and hospital with an area of 8,024 sqm with Right to Build (HGB) No. 2069 located at Jl. MT. Haryono RT. 35, Balikpapan which is registered under the name of PT Putra Balikpapan Adi Perkasa (see Note 13).

• Supporting infrastructure, tools and machinery and medical equipment with the estimated value of Rp 8,665,020,000 (see Note 13).

There are no restrictive financial ratios which are required to be maintained by BDH. Payments of the principal amount of the loan for the current period amounted to Rp 3,499,408,377.






PT Bank Central Asia Tbk Based on Deed of Credit Agreement No. 1 dated April 1, 2003 made in the presence of Yandes Effriady, S.H., a notary in Jambi, and the letter No. 0242/JAM/2010 dated February 3, 2010, as amended by Credit Agreement No. 54 dated July 19, 2010 in the presence of Hasan S. H., a notary in Jambi and the latest by Credit Agreement No. 0134/ADD/119/IV/13 dated April 30, 2013, PT Golden First Atlanta (GFA), a subsidiary, obtained several credit facilities as follows:

• Local Credit Facility (Current Account) with a maximum amount of Rp 5,000,000,000.

• Investment Credit Facility with a maximum amount of Rp 32,419,314,946.

Both facilities bear interest at an annual rate of 11% and will mature on February 5, 2014 and December 20, 2016, respectively.

Both facilities are secured by collaterals as follows:

• Three (3) parcels of land with an area of 7,132 sqm and building with Right to Build (HGB) Nos. 840, 841 and 842/Paal Merah which are registered under the name of GFA, a subsidiary (see Note 13).

• Medical equipment, furniture, fixtures and office equipment, machinery and medical equipment, inventory of medicine and consumable goods and trade receivable (see Notes 5, 7 and 13).

Based on the loan agreement, GFA needs to maintain maximum debt to equity ratio of 5.83 times. As of September 30, 2013 and December 31, 2012, GFA has complied with the financial ratio as required. Payments of the principal amount of the loan for the current period amounted to Rp 4,862,897,241.

19. Deferred Gain on Sale and Leaseback Transaction s


Rp Rp

Acquisit ion Cost 51,954,383,673 51,954,383,673

Accumulated Depreciation (16,444,307,342) (16,444,307,342)

Carrying Value 35,510,076,331 35,510,076,331

Proceeds 219,921,683,217 219,921,683,217

Less: Gain Credited to Consolidated Statements of

Comprehensive Income (5,949,923,669) (5,949,923,669)

Deferred Gain on Sale and Leaseback Transactions - Net 178,461,683,217 178,461,683,217

Less : Accumulated Amortization (32,758,719,935) (23,827,486,838)

Subtotal 145,702,963,282 154,634,196,379

Less: Current Port ion (11,897,445,548) (11,897,445,548)

Non Current Portion 133,805,517,734 142,736,750,831

Deferred gain on sale and leaseback transactions are amortized proportionately over the lease period of 15 years using the straight-line method (see Note 34.a).






20. Long-Term Employment Benefits Liabilities

Post-employment benefits – No Funding Defined Benefit Plan The Group appointed independent actuaries to determine and recognize post-employment liability in accordance with the existing manpower regulations. Post-employment benefit liabilities of the Group as of September 30, 2013 was calculated by PT Mega Jasa Aktuaria with report dated October 28, 2013, as of December 31, 2012 was calculated by PT Mega Jasa Aktuaria and PT Dayamandiri Dharmakonsilindo with reports dated February 1, 2013. Management believes that the estimates of post-employment benefits are sufficient to cover such liabilities. Post-employment benefits recognized in the consolidated statements of financial position are as follows:

30 September 2013 31 December 2012

Rp Rp

Present Value of Defined Benefit Obigation 78,758,060,368 83,246,126,314Adjustments 205,814,001 --Liabilities from Acquired Company -- 2,897,038,000Unrecognized Past Service Cost 606,388,573 (1,159,032,913)Unrecognized Actuarial Gain (Loss) 6,820,223,471 (13,961,501,752)

Total 86,390,486,413 71,022,629,649

The details of post-employment benefit expense recognized in the consolidated statements of comprehensive income are as follows:

2013 2012(9 Months) (1 Year)

Rp Rp

Current Service Cost 11,196,380,506 14,869,160,461Interest Expense 3,831,148,592 3,813,313,358Curtailment Impact (1,686,329,720) --Past Service Cost (Non-Vested) 49,551,748 1,206,723,565Recognized Actuarial Gain 84,961,917 (1,625,752,108)

Total 13,475,713,043 18,263,445,276

Reconciliation of changes in liabilities recognized in the consolidated statements of financial position are as follows:

2013 2012(9 Months) (1 Year)

Rp Rp

Beginning Balance Liabilities 71,022,629,649 61,948,967,622Payment of Employees' Benefits -- (12,843,138,426)Liabilities from Acquired Company -- 2,897,038,000Adjustments 1,892,143,721 756,317,177Post-employment Benefits Expense During the Period 13,475,713,043 18,263,445,276

Ending Balance Liabilities 86,390,486,413 71,022,629,649






Reconciliation of changes in present value of defined benefit obligation are as follows:

2013 2012(9 Months) (1 Year)

Rp Rp

Present Value of Defined Benefit Obigation Beginning Period 83,246,126,314 59,753,238,222Interest Expense 3,831,148,592 4,569,630,535Current Service Cost 11,196,380,506 14,869,160,461Curtailment (1,686,329,720) --Payment of Employees' Benefits in the Current Period (3,529,000) (12,843,138,426)Adjustment Present Value in Past Period 2,466,616,000 --Unrecognized Actuarial Losses (20,292,352,324) 16,897,235,522Present Value of Defined Benefit Obligation Ending Period 78,758,060,368 83,246,126,314

The amount of the current period and previous four annual periods of the present value of the defined benefit obligation, the fair value of plan assets and deficits in the program are as follows:

September 30, December 31, December 31, December 31, December 31,

2013 2012 2011 2010 2009

Rp Rp Rp Rp Rp

Defined Benefit Obligation 78,758,060,368 83,246,126,314 59,753,238,222 43,855,091,116 39,705,112,010

Plan Assets -- -- -- -- --

Deficit Program 78,758,060,368 83,246,126,314 59,753,238,222 43,855,091,116 39,705,112,010

Present value of liability, related current service cost and past service cost has been calculated by independent actuaries using the following assumptions:


Discount Rates : 6% 8%

Salary Increase Projection Rate : 8% 8%

Mortality Rate : Indonesia – II Indonesia – II

Permanent Disability Rate : 10% x TMI – II 10% x TMI – II

Withdrawal Rate : 1% for age 18 – 44, 1% for age 18 – 44,

0% for age 45 – 54 0% for age 45 – 54

21. Capital Stock

The composition of the Company stockholders as of September 30, 2013 and December 31, 2012 are as follows:

Total Percentage Issued and

Shares Ownership Fully Paid(%) Rp

PT Megapratama Karya Persada 699,000,000 60.46 69,900,000,000

PT Kalimaya Pundi Bumi 100,000,000 8.65 10,000,000,000

PT Safira Prima Utama 100,000,000 8.65 10,000,000,000

PT Gloria Mulia 50,000,000 4.32 5,000,000,000

PT Nilam Biru Bersinar 44,100,000 3.81 4,410,000,000

PT Maharama Sakti 1,000,000 0.09 100,000,000

Public (less than 5% each) 162,000,000 14.01 16,200,000,000

Total 1,156,100,000 100.00 115,610,000,000

Stockholders

September 30, 2013






Total Percentage Issued and

Shares Ownership Fully Paid(%) Rp

PT Megapratama Karya Persada 699,000,000 69.90 69,900,000,000

PT Kalimaya Pundi Bumi 100,000,000 10.00 10,000,000,000

PT Safira Prima Utama 100,000,000 10.00 10,000,000,000

PT Gloria Mulia 50,000,000 5.00 5,000,000,000

PT Nilam Biru Bersinar 50,000,000 5.00 5,000,000,000

PT Maharama Sakti 1,000,000 0.10 100,000,000

Total 1,000,000,000 100.00 100,000,000,000

December 31, 2012

Stockholders

Reconciliation of number of shares outstanding as of September 30 2013 and December 31, 2012 is as follows:

2013 2012

Shares Shares

Number of Shares Outstanding - Beginning 1,000,000,000 1,000,000,000

Addition : Initial Public Offering 156,100,000 --

Outstanding Shares - Ending 1,156,100,000 1,000,000,000

Outstanding Shares

22. Additional Paid-in Capital - Net

Details of additional paid-in capital - net as of September 30, 2013 and December 31, 2012 are as follows:

30 September 2013 31 December 2012

Rp Rp

Addition Paid-in Capital Excess of Par - Net 1,312,722,950,000 --Difference in Value Due to Restructuring Transactions

between Entities Under Common Control – Net (11,329,652,726) (11,329,652,726)

Change in Equity Transactions of Subsidiaries (11,728,781,953) (11,728,781,953)

Total 1,289,664,515,321 (23,058,434,679)

Additional Paid-in Capital Excess of Par The details addition paid-in capital excess of par as of September 30, 2013 is as follows:

Rp

Initial Public Offering

Additional Paid-in Capital Excess of Par 1,389,290,000,000

Share Issuance Costs (76,567,050,000)

Total - Net 1,312,722,950,000






Difference in Value from Restructuring Transactions between Entities Under Common Control – Net Difference in value from restructuring transactions between entities under common control as of September 30, 2013 and December 31, 2012 are as follows:

Net Assets Transaction Difference in Value

Value from Restructuring

Transactionbetween Entities

Under CommonControl - Net

Rp Rp Rp

Transfer of Net Assets Value of PT Lippo Karawaci Tbk

Hospital Division's 80,547,087,833 85,000,000,000 (4,452,912,167)Transfer of Share Ownership

PT Siloam Dinamika Perkasa 243,948,248 249,999,000 6,050,752PT Siloam Tata Prima 243,948,248 249,999,000 6,050,752PT Multiselaras Anugerah (958,167,625) 599,999,000 (1,558,166,625)PT Persada Kencana Mandiri (1,427,431,797) 399,000,000 (1,826,431,797)PT Aritasindo Permaisemesta (3,491,744,641) 12,499,000 (3,504,243,641)

--Difference in Value from Restructuring Transaction s

of Entities Under Common Control 75,157,640,266 86,511,496,000 (11,329,652,726)

Difference in value from restructuring transactions between entities under common control resulted from the transfer of net assets of Hospital Division from PT Lippo Karawaci Tbk to the Company and transfer of share ownership. Change in Equity Transactions of Subsidiaries The change in equity transactions of subsidiaries as of September 30, 2013 and December 31, 2012 are as follows:

Rp

PT Aritasindo Permaisemesta 5,398,081,672PT Siloam Graha Utama (18,602,651,139)PT Nusa Medika Perkasa 1,475,787,514Total (11,728,781,953)

The change in equity transactions of subsidiaries resulted from the excess of acquisition costs over the net assets value.

23. Non-Controlling Interest Details of non-controlling interests in the equity of each subsidiary are as follows:

September 30, 2013 December 31, 2012Rp Rp

PT Pancawarna Semesta 6,946,039,597 7,543,924,595

PT Siloam Graha Utama 4,207,729,451 (472,250,406)

PT Kusuma Primadana 1,840,362,455 3,955,843,441

PT Prawira Tata Semesta (656,040,564) (572,514,804)

PT Guchi Kencana Emas (1,699,218,177) 690,026,854

Others 337,249,971 316,087,531

Total 10,976,122,733 11,461,117,212






24. Revenues


Rp Rp

In-Patient

Drugs and Medical Supplies 428,776,622,109 271,465,451,938

Medical Support Services and Professional Fees 413,534,945,148 277,065,160,729

Room Service 148,093,792,705 94,675,663,267

Hospital's Facility 51,231,721,998 33,431,611,253

Administration 46,019,615,790 30,948,541,702

Operating Theatre 25,815,669,577 18,201,844,931

Obsgyn Room Delivery 625,647,921 1,004,933,189

Others 19,756,852,935 13,641,505,957

Subtotal 1,133,854,868,183 740,434,712,966

Out-Patient

Medical Support Services and Professional Fees 425,830,294,876 325,889,021,497


Registration 22,467,415,464 16,711,652,648

Hospital's Facility 14,660,122,864 9,445,204,322

Others 15,815,284,140 6,774,964,265

Subtotal 695,958,871,315 522,805,645,998

Total 1,829,813,739,498 1,263,240,358,964

There were no sales to customers exceeding 10% of net revenues for the periods.

25. Cost of Sales

2013 2012


Rp Rp

In-Patient

Doctors Fee, Salaries and Employees' Benefit 384,277,435,650 276,151,339,210


Depreciation Charges (see Note 13) 70,051,494,975 33,549,397,348

Clinical Supplies 37,271,340,260 25,546,669,731

Food and Beverage 32,878,216,244 19,357,528,458

Outchecking Expense 15,938,924,532 6,090,787,873

Repairs and Maintenance 5,794,039,909 5,287,235,008

Others 34,622,915,822 12,706,122,439

Subtotal 856,014,054,982 588,044,066,132

Out-Patient

Doctors Fee, Salaries and Employees' Benefit 250,150,776,399 195,779,945,655


Depreciation Charges (see Note 13) 37,860,223,263 19,253,881,044

Clinical Supply 17,486,379,467 19,519,633,485

Outchecking Expense 9,183,991,596 4,053,507,992

Repairs and Maintenance 3,447,633,883 3,564,525,234

Others 14,709,611,645 6,044,452,476

Subtotal 514,173,985,452 355,729,094,479

Total 1,370,188,040,434 943,773,160,611

There were no purchases to supplier exceeding 10% of net revenue for the periods.






26. Operating Expenses


Rp Rp

Selling Expense

Marketing and Advert is ing 11,622,346,623 4,319,821,594

Salaries and Employees' Benefit 7,081,343,685 6,039,900,709

Others 40,465,380 41,470,705

Subtotal 18,744,155,688 10,401,193,008

General and Administrat ive Expense

Salaries and Employees' Benefit 149,418,013,376 82,038,817,543

Water and Electricity 54,249,626,538 34,259,568,214

Other Office Expenses 53,700,007,203 25,665,978,447

Depreciation Charges (see Notes 13) 37,392,213,127 32,824,219,876

Rental 28,549,138,823 19,179,879,190

Repair and Maintenance 16,536,930,952 13,542,643,673

Transpportation and Accommodation 15,121,806,269 7,796,231,736

Office Supply 10,841,004,010 6,140,390,611

Communication 6,605,561,885 4,251,562,115

Training and Development 6,152,684,417 2,360,272,717

Permit and License 5,394,546,227 1,751,820,384

Professional Fees 4,368,618,342 2,776,686,204

Insurances 3,448,298,304 3,043,429,834

Others 10,358,275,693 10,025,074,029

Subtotal 402,136,725,166 245,656,574,573

Total 420,880,880,854 256,057,767,581

27. Financial Income (Charges) - Net


Rp Rp

Interest Income 4,946,205,484 2,545,633,501

Financial Charges

Bank Administration Fee (8,835,109,351) (7,271,522,049)

Interest Expense (5,310,838,407) (6,116,986,548)

Subtotal (14,145,947,758) (13,388,508,597)

Total (9,199,742,274) (10,842,875,096)

Bank administration fee represents administrative charges on using electronic data capture (EDC) and bank services.






28. Business Combination

Acquisition of PT Diagram Healthcare Indonesia (DHI) On March 31, 2012, PT Pancawarna Semesta acquired 80% of the outstanding shares of DHI from third parties, in line with the Company’s strategic business expansion plan which supports the Company’s business activities.

Non-controlling interest is measured by the percentage of the non-controlling ownership of the fair value of net assets of DHI.

The following table summarises the identifiable assets acquired and the liabilities taken over at the acquisition date of DHI:

Book Value Fair Value

Net Assets Rp Rp

Cash and Cash Equivalent 5,951,879,958 5,951,879,958

Trade Receivables 1,718,362,121 1,718,362,121

Other Current Financial Assets 3,402,984,235 3,402,984,235

Inventories 3,016,325,388 3,016,325,388

Prepaid Expenses 6,988,810,376 6,988,810,376

Other Non-current Financial Assets 1,693,511,777 1,693,511,777

Property and Equipment 25,969,943,963 52,582,943,963

Trade Payables-Third Parties (1,362,329,594) (1,362,329 ,594)

Accrued Expenses (812,059,303) (812,059 ,303)

Taxes Payable (66,187,108) (66,187 ,108)

Deferred Tax Liability (8,316,562,501) (8,316,562 ,501)

Long-Term Employment Benefits Liabilities (2,897,038,000) (2,897,038 ,000)

Other Non-current Financial Liabilites (24,448,849) (24,448 ,849)

Total Net Asset 35,263,192,463 61,876,192,463

Proportion Acquired 80%

Share of Fair Value o f Net Asse ts 49,500,953,970

Goodwill 9,251,046,030

Total Purchase Consideration 58,752,000,000

Goodwill arising from the acquisition amounted to Rp 9,251,046,030 (see Note 14) and represents subsidiary business results that support and synergy with the core business of the Group.

Non-controlling interest is measured by the percentage of the non-controlling ownership of the fair value from net assets DHI. The balance of non-controlling interest on this acquisition was Rp 14,038,550,993.

Acquisition related expenses were not calculated in this business combination since they were not material but have been charged to the current period statement of comprehensive income.

In connection with the acquisition, the financial statements from the date of acquisition have been consolidated into the financial statements of the Company.

Total revenue and loss before tax of DHI since the date of acquisition which are included in the consolidated statement of comprehensive income for the year ended December 31, 2012 amounted to Rp 26,076,661,740 and Rp 5,860,131,989, respectively.






Revenues and loss of DHI for the year ended December 31, 2012, as if DHI had been consolidated from January 1, 2012, amounted to Rp 34,134,147,413 and Rp 6,487,148,864, respectively.

29. Basic Earnings per Share

Calculation of basic earnings per share is as follows:

2013 2012


Profit for the Period Attributable to Owners

of the Parent Company (Rupiah) 20,140,073,304 46,004,071,775

Number of Shares Outstanding at the Beginning Period 1,000,000,000 1,000,000,000

Add:

Issuance of New Shares from Initial Public Offering 156,100,000 -- Weighted Average of Outstanding Shares 1,010,292,308 1,000,000,000

Basic Earnings per Share (Rupiah) 19.93 46.00

30. Monetary Asset and Liability Denominated in For eign Currencies

Equivalent in

USD SGD EURO Rupiah

Assets

Cash and Cash Equivalent 234,941 9,101,743 36,401 87,344,309,605

Liability

Accrued Expenses 3,101,249 -- -- 36,014,804,637

Asset (Liability) - Net (2,866,308) 9,101,743 36,401 51,329,504,968

September 30, 2013

Foreign Currencies

Equivalent in

USD SGD EURO Rupiah

Assets

Cash and Cash Equivalent 29,106 11,815,077 11,623 93,851,223,089

December 31, 2012

Foreign Currencies

31. Financial Instruments and Financial Risks Manag ement The main financial risks faced by the Group are credit risk, foreign currency exchange rates risk, interest rate risk and liquidity risk. Attention to the management of this risk has increased significantly with considerable change and volatility in the Indonesian markets. (i) Credit Risk

Credit risk is the risk that the Group will incur a loss arising from customers, patients or counterparties failing to meet their contractual obligations. The Group's financial instruments that have the potential for credit risk consist of cash and cash equivalent, trade receivables and other receivables. The maximum amount of credit risk exposure equal to the carrying value of these accounts.

The Group manages credit risk by setting limits on the amount of risk that is acceptable for each customer and receiving assurance from the patient and being more selective in choosing banks and financial institutions which are reputable.






The following table analyzes the financial assets by due maturity:

Not Determined Less Than 1 Year More Than 1 Years Total

Rp Rp Rp Rp

Cash and Cash Equivalent 978,148,199,555 -- -- 978,148,199,555Trade Receivables 109,164,705,704 139,184,265,591 13,644,904,074 261,993,875,369

Due from Related Parties Non-Trade 468,194,358 -- -- 468,194,358

Other Current Financial Assets 4,268,321,732 -- -- 4,268,321,732

Total 1,092,049,421,349 139,184,265,591 13,644,904,074 1,244,878,591,014

September 30, 2013

Due

Not Determined Less Than 1 Year More Than 1 Years Total

Rp Rp Rp Rp

Cash and Cash Equivalent 168,707,958,679 -- -- 168,707,958,679Trade Receivables 68,794,566,719 114,153,507,973 10,286,077,597 193,234,152,289

Due from Related Part ies Non-Trade 662,399,000 -- -- 662,399,000

Other Current Financial Assets 8,072,306,481 -- -- 8,072,306,481

Total 246,237,230,879 114,153,507,973 10,286,077,597 370,676,816,449

December 31, 2012

Due

There is no guarantee of customer receivables which has overdue. The Company has recorded provision for impairment of trade receivables which has overdue accounts (see Note 5).

(ii) Foreign Currency Risk Currency exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates. The Group's financial instruments that potentially have exchange rate risk consist of cash and cash equivalent and accrual expenses (see Note 30). Sensitivity Analysis A hypothetical weakening of the exchange rate of Rupiah against Singapore Dollar is 10%, the Group’s profit before tax for period would have increased by Rp 8,404,549,486 (2012: Rp 9,342,181,384). A hypothetical weakening of the exchange rate of Rupiah against US Dollar is 10%, the Group’s profit before tax for the period would have decreased by Rp 3,328,643,480 and (2012: increased profit before tax Rp 28,145,502). The 10% weakening of the exchange rate of Rupiah against other foreign currencies do not have material impact to the profit after tax.

The above analysis is based on the assumption that the weakening and strengthening of all foreign currencies happened with the similiar patterns, but did not actually happen.

(iii) Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group did not have interest rate risk mainly because it does not have a loan with a floating interest rate. Loans with fixed interest rate have reflected the market interest rates.

(iv) Liquidity Risk Liquidity risk is the risk that the cash flow position of the Group shows a short-term income that is not sufficient to cover its short-term expenses.






The Group manages liquidity risk by maintaining cash and cash equivalent sufficient to meet the Group's commitment to its normal operations and regularly evaluate cash flow projections and actual cash flows, as well as the schedule of due dates of its financial assets and liabilities.

The following table details financial liabilities analyzed by maturity:

Maturity

Less Than 1 Year 1 - 5 Years More than 5 Years Not Determined Total

Rp Rp Rp Rp Rp

Measured at Amortized cost :

Trade Payable - Third Parties 163,359,128,948 -- -- -- 163,359,128,948

Bank Loans 16,571,934,431 38,772,751,868 7,193,721,063 -- 62,538,407,362Accrued Expenses 100,207,025,657 -- -- -- 100,207,025,657Other Current Financial Liabilities 74,638,201,874 -- -- -- 74,638,201,874

Due to Related Parties Non-Trade -- -- -- 426,786,745,368 426,786,745,368

Total 354,776,290,910 38,772,751,868 7,193,721,063 426,786,745,368 827,529,509,209

Due

September 30, 2013

Maturity

Less Than 1 Year 1 - 5 Years More than 5 Years Not Determined Total

Rp Rp Rp Rp Rp

Measured at Amortized cost :

Trade Payable - Third Parties 155,526,637,952 -- -- -- 155,526,637,952

Bank Loans 16,071,687,315 44,868,601,987 9,884,512,480 -- 70,824,801,782Accrued Expenses 33,509,451,861 -- -- -- 33,509,451,861Other Current Financial Liabilities 26,924,904,271 -- -- -- 26,924,904,271

Due to Related Part ies Non-Trade -- -- 798,786,624,559 798,786,624,559

Total 232,032,681,399 44,868,601,987 9,884,512,480 798,786,624,559 1,085,572,420,425

December 31, 2012

Due

Estimation of Fair Value The following table presents the carrying amounts of each category of financial assets and liabilities:

Carry ing Value Fair Value Carrying Value Fai r Value

Rp Rp Rp Rp

Financial Assets:

Loans and Receivables:

Cash and Cash Equivalent 978,148 ,199,555 978,148,199 ,555 168,707,958,679 168,707,958,679

Trade Receivables 253,259 ,265,921 253,259,265 ,921 187,066,776,874 187,066,776,874

Due from Related Parties Non-Trade 468,194,358 468,194 ,358 662,399,000 662,399,000

Other Curren t Financial Assets 4,268 ,321,732 4,268,321 ,732 8,072,306,481 8,072,306,481Deposito

Total 1,236,143 ,981,566 1,236,143,981 ,566 364,509,441,034 364,509,441,034

December 31, 2012September 30, 2013

Financial Liabilities Measured at

Amort ized cost :

Trade Payables-Th ird Parties 163,359,128,948 163,359,128 ,948 155,526,637,952 155,526,637,952

Accrued Expenses 100,207,025,657 100,207,025 ,657 33,509,451,861 33,509,451,861

Bank Loans 62,538,407,362 62,538,407 ,362 70,824,801,782 70,824,801,782

Other Curren t Financial Liabilites 74,638,201,874 74,638,201 ,874 26,924,904,271 26,924,904,271

Due to Related Parties Non-Trade 426,786,745,368 426,786,745 ,368 798,786,624,559 798,786,624,559

Total 827,529,509,209 827,529,509 ,209 1,085,572,420,425 1,085,572,420,425

As of September 30, 2013 and December 31, 2012, management estimated that the carrying value of the current assets and financial liabilities and those accounts with no determined maturity reflected their fair value.






32. Capital Management


Rp Rp

Net Liabilities:

Total Liabilities 1,087,462,610,734 1,341,585,219,583

Less : Cash and Cash Equivalent (978,148,199,555) (168,707,958,679)

Total Net Liabilities 109,314,411,179 1,172,877,260,904

Total Equity 1,592,628,827,334 244,640,798,509

Less:

Addit ion Capital - Net 23,058,434,679 23,058,434,679

Non-controlling Interest (10,976,122,733) (11,461,117,212)

Total 12,082,311,946 11,597,317,467

Total of Adjusted Equity 1,604,711,139,280 256,238,115,976

Net Liability Ratio to Adjusted Equity 0.1 4.6

The Company’s capital management objective is to maintain the continuity of the Company's business (going concern), to maximize the benefits for shareholders and other stakeholders and maintain an optimal capital structure to reduce the cost of capital. The Company regularly reviews and manages its capital structure to ensure the return to shareholders is optimal, taking into consideration the future capital needs and the Company’s capital efficiency, profitability of the present and the future, projected operating cash flows, projected capital expenditures and projected strategic investment opportunities.

33. Non-cash Transactions

The following are investing and financing activities that did not affect cash flows:

• Additions of property and equipment of the Group for period ended September 30, 2013 reclassified from advances amounting to Rp 134,060,431,884.

• Additions of property and equipment of the Group for period ended September 30, 2013 from payables amounting to Rp 51,788,309,192 (see Note 13).

• Accrual of share issuance costs as of September 30, 2013 amounting to Rp 45,949,390,225 (see Note 17).

• Additions of property and equipment of the Group for the year ended December 31, 2012 reclassified from advances amounting to Rp 12,808,909,716.

34. Commitments and Significant Agreements

a. Rental Agreement

• On December 31, 2010, based on Sale and Purchase Agreement No. 146/2010, PT East Jakarta Medika (EJM), a subsidiary, sold the land and building of Siloam Cikarang Hospital (the Property) to PT Graha Pilar Sejahtera (GPS), a wholly owned subsidiary of First Real Estate Investment Trust (First REIT), at a sale price of SGD 33,333,333 and leased back the Property. Based on the rental agreement of Allen & Gledhill Advocates & Solicitors dated November 8, 2010, EJM, which received novation from PT Lippo Karawaci Tbk, ultimate parent company, on October 8, 2010 entered into a lease agreement with GPS for 15 years. Based on the agreement, EJM shall pay rental fee






which consist of base rent and variable rent. Base rent commences in the first year of the lease period and will be adjusted in the following year, while variable rent will commence in the second year of the lease period based on certain percentage of gross revenue. Rental expense will be paid quarterly. Any late payment will be subjected to 2% penalty plus interest rate based on the average lending rate of 3 banks in Singapore. As this sale and leaseback transaction met the classification of operating lease and the transaction price was above its fair value, the difference was recognized as deferred gain (see Note 19).

For the period 9 (nine) months ended September 30, 2013 and 2012, rental expenses for sale and lease-back transaction amounted to Rp 25,309,320,167 and Rp 20,599,349,448, respectively.

• On January 7, 2012, the Company entered into a lease agreement for Siloam Hospitals Palembang (Siloam Sriwijaya) with PT Palembangparagon Mall (PM). This agreement is valid for 10 years from the grand opening of the hospital and included a rental free period (grace period) for 3 (three) months after the grand opening of the hospital. Based on the agreement, Siloam Sriwijaya shall pay rental fee in the amount of Rp 3 billion and will be increased by Rp 500 million every three years period. The rental fee is payable in advance for each period not later than the 10th day of the first month of the rental period. On October 5, 2012, PM entered into transfer of property ownership agreement with PT Bisma Pratama Karya, thus, Siloam Sriwijaya receive novation of lease ownership. This agreement did not change the terms of the original lease agreement. For the 9 (nine) months period ended September 30, 2013, rental expenses amounted to nil.

b. Sub-Lease Agreement between the Company and PT Lippo Karawaci Tbk (LK) On April 30, 2013, the Company entered into a sub-lease agreement with LK, ultimate parent entity of the Company, covering property of Siloam Hospitals Lippo Village, Siloam Hospitals Kebon Jeruk, Siloam Hospitals Surabaya, Siloam Hospitals Semanggi MRCCC, Siloam Hospitals Manado, Siloam Hospitals Makassar, Siloam Hospitals Bali and Siloam Hospitals TB Simatupang. For the period May 1, 2013 until September 30, 2013, rental expenses amounted to Rp 6,805,622,762.

c. Master Agreement between the Company with PT Lippo Karawaci Tbk (LK) On April 30, 2013, the Company entered into a preliminary agreements with LK, ultimate parent entity of the Company, which include:

• Property lease agreement of Rumah Sakit Umum Siloam and the properties to be used as Siloam Hospitals Kemang and Siloam Hospitals St. Moritz;

• The right to build properties that will be used as Siloam Hospitals Yogyakarta, Siloam Hospitals Bintaro and Siloam Hospitals Surabaya Manyar;

• The agreement to offer certain property to be operated as Siloam Hospitals Pontianak; and • Co-operation agreement Siloam Hospitals Bandung.

d. Master Agreement between the Company with PT Metropolis Propertindo Utama (MPU)

On April 30, 2013, the Company entered into a preliminary agreements with MPU which include:

• Sale and purchase of shares of Siloam Hospitals Malang, Siloam Hospitals Salemba, Siloam Hospitals Palembang, Siloam Hospitals Medan and Siloam Hospitals Surabaya Sea Master;






• Right to build properties that will be used as Siloam Hospitals Padang, Siloam Hospitals Bangka Belitung, Siloam Hospitals Semarang Srondol, Siloam Hospitals Bogor Internusa, Siloam Hospitals Jember, Siloam Hospitals Bluemall Bekasi, Siloam Hospitals Bekasi Grand Mall, Siloam Hospitals MT Haryono, Siloam Hospitals Salemba, Siloam Hospitals Lampung and Siloam Hospitals Kupang;

• The right to operate and manage Siloam Hospitals Medan and Siloam Hospitals Kupang; • Property lease agreement of Siloam Hospitals Surabaya Sea Master, Siloam Hospitals Pluit and Siloam

Hospitals Cempaka Putih; and

• The agreement to offer certain property to be operated as Siloam Hospitals Purwakarta, Siloam Hospitals Ambon, Siloam Hospitals Lubuk Linggau, Siloam Hospitals Manado Kairagi, Siloam Hospitals Serang and Siloam Hospitals Pekanbaru.

35. Operating Segments

Siloam Hospital Siloam Hospital Siloam Hospital MRCCC Siloam Hospitals Siloam Hospitals Others Elimination Consolidation

Lippo Vilage Kebun Jeruk Surabaya Cikarang Balikpapan

Rp Rp Rp Rp Rp Rp Rp Rp Rp

External Revenue

In-Patient 295,948,519 186,232,756 124,807,779 139,978,519 53,619,370 51,767,467 281,500,459 -- 1,133,854,868

Out-Patient 202,842,361 137,794,354 65,041,477 94,911,136 50,430,545 39,396,350 105,542,649 -- 695,958,871

498,790,880 324,027,110 189,849,255 234,889,655 104,049,915 91,163,817 387,043,108 -- 1,829,813,739

Gross Profit

In-Patient 100,668,596 51,023,566 26,292,060 28,271,152 12,416,405 17,124,867 42,044,168 -- 277,840,813

Out-Patient 57,651,787 29,590,740 30,035,736 23,540,725 13,323,068 8,328,753 19,314,076 -- 181,784,886

158,320,384 80,614,306 56,327,796 51,811,877 25,739,473 25,453,620 61,358,244 -- 459,625,699

Operating Expenses and Others (61,637,874) (41,358,464) (24,891,016) (79,407,741) (17,930,711) (21,974,570) (173,927,982) -- (421,128,359)

Finance Expense - Net (2,084,890) (2,538,676) (477,304) (1,008,543) 1,278,026 (3,307,537) (1,060,817) -- (9,199,742)

Tax Expenses -- -- -- -- 273,237 (474,489) (9,441,267) -- (9,642,519)

Profit (Loss) for the Period 94,597,619 36,717,165 30,959,475 (28,604,407) 9,360,024 (302,976) (123,071,822) -- 19,655,079

Capital Expenditures 12,134,348 14,988,494 2,850,018 3,901,471 1,025,249 18,986,862 242,714,428 -- 296,600,869

Depreciation 15,427,922 10,921,363 7,120,965 31,125,980 4,810,884 8,793,619 67,103,199 -- 145,303,931

Non-Cash Expense exclude Depreciation 3,615,220 2,489,388 278,595 10,831,520 267,920 1,737,414 8,378,670 -- 27,598,727

2013 (9 Months) (In Thousand Rupiah)

Segment Assets 408,710,460 209,786,709 143,708,736 273,652,337 175,392,599 211,240,463 1,257,600,134 -- 2,680,091,438

Segment Liabilities 91,074,636 59,125,451 44,200,305 360,960,632 179,233,077 222,750,345 130,118,165 -- 1,087,462,611


Siloam Hospital Siloam Hospital Siloam Hospital MRCCC Others Elimination Consolidation

Lippo Vilage Kebun Jeruk Surabaya

Rp Rp Rp Rp Rp Rp Rp

External Revenue

In-Patient 259,224,575 154,785,369 104,463,734 86,352,287 135,608,749 -- 740,434,713

Out-Patient 171,539,219 125,744,202 56,675,142 54,727,140 114,119,944 -- 522,805,646

430,763,794 280,529,570 161,138,876 141,079,427 249,728,693 -- 1,263,240,359

Gross Profit

In-Patient 61,371,617 32,164,264 20,082,617 9,221,178 29,550,970 -- 152,390,647

Out-Patient 56,412,028 33,920,250 25,603,195 9,300,954 41,840,125 -- 167,076,552

117,783,645 66,084,514 45,685,812 18,522,133 71,391,095 -- 319,467,198

Operating Expenses and Others (44,816,612) (28,552,519) (21,219,566) (52,010,113) (94,826,030) -- (241,424,840)

Finance Expense - Net (2,180,021) (2,441,466) (403,254) (490,600) (5,327,534) -- (10,842,875)

Tax Expenses -- -- -- -- (16,334,911) -- (16,334,911)

Profit (Loss) for the Period 70,787,013 35,090,529 24,062,991 (33,978,580) (45,097,380) -- 50,864,573

Capital Expenditures 24,311,448 18,506,156 19,899,199 17,952,353 173,549,222 -- 254,218,378

Depreciation 13,086,361 8,648,734 5,499,514 29,980,077 28,412,811 -- 85,627,498

Non-Cash Expense exclude Depreciation 4,349,896 6,139,756 2,695,521 1,994,930 5,273,487 -- 20,453,590


Siloam Hospital Siloam Hospital Siloam Hospital MRCCC Others Eliminatin Consolodation

Lippo Vilage Kebun Jeruk Surabaya

Rp Rp Rp Rp Rp Rp Rp

Segment Assets 309,918,534 167,127,664 100,465,449 290,895,007 717,819,363 -- 1,586,226,018

Segment Liabilities 86,880,329 53,183,571 31,916,494 349,598,896 820,005,930 -- 1,341,585,220

2012 (1 Year) (In thousand Rupiah)






36. Litigation Cases

• On March 27, 2009, dr Doro Soendoro, dr Liem Kian Hong and dr Hardi Susanto as the plaintiffs filed a lawsuit against the Company as defendant regarding the termination of the plaintiff’s work contract. All claims were declined through the decision of the District Court Jakarta Barat No. 147/Pdt.G/2009/PN.JKT.BAR dated July 23, 2009 and was upheld on June 29, 2010, through the decision of the High Court of Jakarta No. 626/PDT/2009/PT.DKI. On September 24, 2010, the plaintiffs filed an appeal against the decision to the Supreme Court. Until the reporting date, this case is still in process.

• On July 9, 2009, Alfonsus Budi Susanto, S.E., M.A., the plaintiff, filed a lawsuit against the Company as first defendant and four other defendants in connection with malpractice suffered by plaintiff. All claims were declined through decision of District Court Jakarta Utara No. 237/Pdt.G/2009/PN.Jkt.Ut dated March 11, 2010 and was upheld on May 18, 2011, through the decision of the High Court of Jakarta No. 548/PDT/2010/PT.DKI. On February 23, 2012, the plaintiffs filed an appeal against the decision to the Supreme Court. Until to the reporting date, this case is still in process.

• On October 1, 2012, Wahju Indrawan the plaintiff, filed a lawsuit No 71/Pdt.G/2012/PN.JBI against GFA, a subsidiary as first defendant and two other defendants in connection with malpractice suffered by plaintiff’s wife.

Until to the reporting date, this case is still in process.

37. Events After Reporting Date

• On October 24, 2013, the Company partially paid its loan, related parties non-trade, to PT Lippo Karawaci Tbk, ultimate parent entity, amounting to Rp 64,916,532,500.

• On October 29, 2013, payables related to the acquisition of medical equipment amounting to

Rp 51,788,309,192 were fully paid to PT Elektra Setya Ekatama.

• Until November 25, 2013, the Company paid accrued of share issuance costs amounting to Rp 16,106,947,605.

38. Responsibility and Issuance of the Interim Cons olidated Financial Statements The management of the Company is responsible for the preparation and presentation of the interim consolidated financial statements. The interim consolidated financial statements were authorized for issuance by Directors on November 25, 2013.

Approval for Printing: ....................... ............................... Director Accounting Manager

PT SILOAM INTERNATIONAL HOSPITALS Tbk AND ... 5, 2013 paraf: PT SILOAM INTERNATIONAL HOSPITALS Tbk AND SUBSIDIARIES Table of Contents Page Directors’ Statement Letter Independent

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