MrWolf

Downside factor: 1) Execution risks for Shanghai hospital, its first outside Singapore.

2) Higher-than-expected start-up costs in major expansion markets such as China.

3) Structural decline of medical tourism in Singapore

MrWolf

Upside factor: 1) Further progress on second hospital in China, which could be in Shenzhen or other top cities. Shenzhen hospital first announced in Feb 2013.

2) Faster-than-expected breakeven for Singapore expansion. Normal breakeven period is one year.

3) Medical tourism in Singapore could recover from 2015
weakness as RFMD is constantly seeking new source
markets.