Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Q4 FY20 Earnings Presentation
26 slides from Healthcare Global Enterprises's earnings presentation, Jul 29, 2020
Slide 1: Cover letter to stock exchanges: Investor Presentation
July 29, 2020 National Stock Exchange of India Limited, BSE Limited, Compliance Department, Compliance Department, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai - 400051, Dalal Street, Mumbai - 400001, Maharashtra, India Maharashtra, India Dear Sir/Madam, Sub
Slide 2: HealthCare Global Enterprises Limited Investor Presentation Q4-FY20
HealthCare Global Enterprises Limited Investor Presentation Q4-FY20 www.hcgel.com @2020 HCGEL – All Rights Reserved
Slide 3: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This pr
Slide 4: Leadership in specialty healthcare
Leadership in specialty healthcare 3 www.hcgel.com
Slide 5: Contents
Contents Overview Financial Highlights Appendix www.hcgel.com
Slide 6: Overview of HCG
Overview of HCG Snapshot of the Business Comprehensive cancer diagnosis and Specialty healthcare provider with a treatment services (through radiation therapy, medical oncology and surgery) focus on cancer and fertility Largest1 provider of cancer care in India 226 comprehensive cancer cente
Slide 7: Overview of HCG
Overview of HCG Entry into fertility business Today India’s largest through the acquisition of provider 50.1% in BACC Healthcare Pvt. of cancer care¹ Ltd. Awarded Oncology Leader 2013 of the Year by Frost & Sullivan Milann ranked #1 nationally 2011 Entry into the clinical laboratory business through
Slide 8: HCG's Cancer Care Network
HCG’s Cancer Care Network Network of Existing and Under HCG Network Development Cancer Care centers Center of Excellence (CoE)1 Comprehensive Cancer center (22)2 Freestanding Diagnostic center (3)2 2,0711 +28 +17 BEDS LI NEAR PET- CT Day Care Chemotherapy center (1) ACCELERATORS SCANNERS Cancer cent
Slide 9: Contents
Contents Overview Financial Highlights Appendix www.hcgel.com
Slide 10: Financial Highlights: Q4-FY20
Financial Highlights: Q4-FY20 INR million except earnings per share • Q4’20 Revenue grew 4.8% y-o-y Q4-FY20 Q4-FY19 Growth Q4-FY20 Growth Period Ended Mar 31 As per AS 116 (y-o-y) w/o AS 116 (y-o-y) • HCG(1) centers: +5.2% Income from Operations 2,704 2,579 4.8% 2,704 4.8% • Milann(2) centers: -1.2%
Slide 11: Financial Highlights: FY20
Financial Highlights: FY20 INR million except earnings per share • FY’20 Revenue grew 12.0% y-o-y FY20 FY19 Growth FY20 Growth Period Ended Mar 31 As per AS 116 (y-o-y) w/o AS 116 (y-o-y) • HCG(1) centers: +12.2% Income from Operations 10,956 9,787 12.0% 10,956 12.0% • Milann(2) centers: +9.0% Other
Slide 12: Revenue Mix: FY20
Revenue Mix: FY20 Revenue: HCG Centers: INR 10,956 Mn INR 10,255 Mn Gujarat HCG (1) 30% Karnataka (29%) 1 centers 35% 94% (38%)1 (93%) 1 (2) Fertility centers 6% North India Maharashtra (7%) 1 2% 14% (1%) 1 (14%) 1 Tamil Nadu A.P. East India (1) 22 comprehensive cancer centers, 3 multispecialty hosp
Slide 13: HCG Centers: Q4 and FY20 Revenues
HCG Centers: Q4 and FY20 Revenues INR million • Strong growth continues at Growth Growth several existing and new centers Period Ended Mar31 Q4-FY20 Q4-FY19 (y-o-y) FY20 FY19 (y-o-y) in Q4-FY20 • Vizag: +33.4% y-o-y Karnataka 934 907 3.0% 3,645 3,490 4.4% Gujarat 723 734 -1.4% 3,037 2,668 13.8% • Bo
Slide 14: HCG Centers: FY20 Operating Metrics
HCG Centers: FY20 Operating Metrics No. of Centers Beds Avg. Occupancy Rate FY20: FY20: • ARPOB for existing centers at INR 33,225 FY20: 2,071 42.9% against INR 31,171 in FY19 25 • ALOS at 2.27 on account of trend towards day FY19: care procedures and changing patient profile FY19: FY19: 1,872 43.7%
Slide 15: HCG Centers: FY20 Regional Highlights
HCG Centers: FY20 Regional Highlights ARPOB Revenue Operating Centers Beds AOR (INR/Day) (INR MN) EBITDA % Karnataka COE ARPOB of INR 56.9k with 27.1% operating EBITDA margin FY20 COE ROCE improved from 25.8% to 7 615 45.9% 36.4K 3,645 23.8% 27.1% Focus on margin and returns optimization +3.1%
Slide 16: Milann: Implementing Strategic Initiatives
Milann: Implementing Strategic Initiatives Existing centers(1) New centers(2) Chandigarh Delhi Ahmedabad FY20 FY19 Growth New Registrations 5,481 5,688 -3.6% IVF Cycles 2,195 2,045 7.3% Bangalore (5 centers) Revenue (INR Mn) 701 644 9.0% M S Ramaiah Indiranagar Shivananda Whitefield New Registrati
Slide 17: Capital Expenditure and Net Debt
Capital Expenditure and Net Debt Capital Expenditure Net Debt INR Million INR Million Q4-FY20 FY20 FY19 31-Mar-20 31-Dec-19 31-Mar-19 Net Debt HCG Centres Bank Debt(1) 5,682 5,535 4,255 Existing Centres 38 169 301 (2) Vendor Finance 1,118 1,174 1,481 Expansions 48 366 467 Capital Leases 555 563 564
Slide 18: Project Updates
Project Updates Additional 2 new HCG centers in FY2020 1 new Milann center launched in Q1 FY2019 Bed Project Cost Start Location Capacity (INR mn) Date Location Start Date Jaipur, Rajasthan 50 410 Q2-FY19 Delhi Q1-FY17 Bhavnagar, Gujarat NA 150 Q2-FY19 Chandigarh Q3-FY17 Nashik Phase II, 92 623 Q2-F
Slide 19: Contents
Contents Overview Financial Highlights Appendix www.hcgel.com
Slide 20: Investment Thesis
Investment Thesis Industry trends Largest provider of High quality care provided Strong management and backdrop cancer care in India with at a competitive price team with successful a proven track record track-record 19 © 2020, ALL RIGHTS RESERVED www.hcgel.com
Slide 21: Industry Trends and Backdrop
Industry Trends and Backdrop Cancer Incidences in India to Increase Incidence of Cancer Across Countries¹ 3.4 Cancer prevalence in India estimated to be 3.9mn in 2015 Estimated 1.6-2.2 Estimated 1.1mn new cancer cases reported in 2015 1.7 incidence of 1.1 0.9 cancer in 2015 (mns) Real incidenc
Slide 22: Industry Trends and Backdrop
Industry Trends and Backdrop Demand Supply Gap and Treatment Landscape Existing Demand Supply Gap in Diagnostics… …and Treatment Lack of adequate infrastructure and absence of mass A key requirement for successful radiation therapy is screening programs are key barriers to timely diagnosis avail
Slide 23: Largest Provider of Cancer Care in India
Largest Provider of Cancer Care in India A Proven Track Record¹ HCG’s market leading position, successful track record and strong reputation in India provides a significant advantage over its competitors Largest Cancer Care Provider… …With a Strong Track Record Largest provider of cancer care in I
Slide 24: High Quality Care Provided at Competitive Price
High Quality Care Provided at Competitive Price Ability to provide high quality care driven by a multidisciplinary and technology focused approach Approach to Providing High Quality Care… …Results in Successful Clinical Multidisciplinary approach to cancer care - specialist physicians from Outcome
Slide 25: Coverage by Harvard: Unique and Successful Business Model
Coverage by Harvard Unique and Successful Comparable outcomes at Business Model fraction of cost Survival Rate Cost Govindarajan et. al. .Harvard Business Review, November 2012, “Delivering World Class Health Care Affordably, Innovative hospitals in India are pointing the way”G 24 © 2024, ALL RIGHTS
Slide 26: Thank You
THANK YOU For updates and specific queries, please visit www.hcgel.com or feel free to contact investors@hcgoncology.com © 2019 HealthCare Global Enterprises Limited., All Rights Reserved. HCG Logo is trademark of HealthCare Global Enterprises Limited In addition to Company data, data from market re
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