Narayana Hrudayalaya Ltd. · NSE:NH
Narayana Hrudayalaya — Investor Presentation (May 2017)
30 slides from Narayana Hrudayalaya's investor presentation, May 2017
Slide 1: Investor Presentation May 2017
Investor Presentation May 2017
Slide 2: Important Disclosure
Important Disclosure No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of this d
Slide 3: The NH Case
The NH Case whe INH Narayana Health
Slide 4: Leading Pan-India Multispeciality Healthcare Group
Leading Pan-India Multispeciality Healthcare Group As on 1st May 2017 NH’s footprint in India 51 Healthcare Facilities Operational beds 20 Owned / Operated Hospitals(1) 4,721 Beds 4 Managed Hospitals(2) 720 Beds Kakriyal, Jammu Northern Region 2 hospitals and 1 upcoming 7 Heart Centres 376 Beds faci
Slide 5: Evolution of India's Second Largest Healthcare Operator
Evolution of India’s Second Largest* Healthcare Operator 4 Calibrated expansion to emerge as true Pan-India 3 healthcare provider Multi-modal growth with Asset-Right and Inorganic ventures 2 Extension of services across the country 2016 onwards delivering multispeciality care Listed successfully o
Slide 6: Best-in-Class Leadership with Diverse Experience
Best-in-Class Leadership with Diverse Experience Dr. Devi Prasad Shetty Dr. Ashutosh Raghuvanshi Viren Shetty Chairman and Executive Director Vice Chairman, MD & CEO Executive Director Cardiac surgeon with 33 years Cardiac surgeon with 26 years MBA from Stanford University of experience of exp
Slide 7: Distinguished Capital Outlay Framework Underpins Emphasis on Return Metrics
Distinguished Capital Outlay Framework Underpins Emphasis on Return Metrics Owned OR Long Term / Perpetual Lease(3) Flexible Business Models to maximize Owns and operates on freehold basis OR land taken on long term / perpetual lease returns Average Effective Capital Cost 2,607 per bed of ₹ 2.7
Slide 8: Evolving Case Mix with Leadership in Cardiac & Renal Sciences
Evolving Case Mix with Leadership in Cardiac & Renal Sciences and Growing Share of Other Specialities The department of cardiology carried out the first Transcatheter Aortic De-risking business model Valve Implantation (TAVI) in India by expanding the service spectrum(1) ~35,000 angiogram, ~12,0
Slide 9: Trusted Brand Decorated with Awards and Recognition
Trusted Brand Decorated with Awards and Recognition Deep-rooted social & ethical practices coupled with commitment towards clinical excellence Awards & Recognitions for the Chairman 2013(1) 2014-15(1) 2016-17(1) Dr. Devi Shetty 19th Nikkei Asia Prize 2014 Economic & Business Innovation 2013 Entrepre
Slide 10: Four Pronged Strategy to Drive Sustained Expansion
Four Pronged Strategy to Drive Sustained Expansion One Stop Shop for all Healthcare Needs Adopting Technology, Improving Lives Proven Centre of Excellence in Cardiac and Renal Patient well being - the centerpiece of the group’s vision Sciences Deploy disruptive technology to foster clinical ex
Slide 11: Northern Cluster – Glimpses of Recent Transactions
Northern Cluster – Glimpses of Recent Transactions 11
Slide 12: Realizing the Goal of being a True Pan-India Healthcare Operator
Realizing the Goal of being a True Pan-India Healthcare Operator NCR Strategic inroad into Northern region: NH forayed into northern region of India in April 2016 by commissioning a superspeciality hospital at Kakriyal, Jammu Overwhelming response till date with achievement of Upcoming Hospital
Slide 13: Dharamshila Narayana Superspeciality Hospital: NH's Maiden Foray Into NCR
Dharamshila Narayana Superspeciality Hospital: NH’s Maiden Foray Into NCR O&M Arrangement Highlighting “Asset-Light” Engagement: NH has partnered with Dharamshila Cancer Foundation & Research Centre to operate a ~300 capacity bedded facility in East Delhi Deferred payout to the partner over 25 y
Slide 14: NH Gurugram: Commitment to Create a Vibrant Northern Cluster
NH Gurugram: Emphasizing Group’s Commitment to Create a Vibrant Northern Cluster Strategic Location: Located on the Delhi-Haryana Border in South West part of NCR Proximity to major commercial hubs and thriving residential colonies First hospital en route Gurugram from Indira Gandhi Internatio
Slide 15: Commissioning of SRCC Children's Hospital in Mumbai
Commissioning of SRCC Children’s Hospital in Mumbai 15
Slide 16: SRCC Children's Hospital: Inroad in Mumbai
SRCC Children’s Hospital: Inroad in Mumbai with a Unique “Children’s Only” Hospital Premier “One-of-its-Kind” Paediatric Facility: First of its kind in NH’s network The hospital is envisaged to leverage the strong credentials NH has developed in Paediatric care NH operates one of the World's l
Slide 17: Indian Healthcare Services Industry
Indian Healthcare Services Industry 17
Slide 18: Indian Healthcare Industry at a Glance
Indian Healthcare Industry at a Glance Sector Outlook: Inadequate bed infrastructure in India Hospital bed / 10,000 population Indian healthcare market is expected to reach US$280 bn by 2020, a CAGR of 23% between FY15-20E 63 Hospital segment constitutes ~71% of the market 36 34 Medical touris
Slide 19: Key Growth Drivers
Key Growth Drivers National Health Policy 2017 has set Ambitious Growing working class population in age group 45-60 years Targets: Universal healthcare coverage - Increase health 25% 29% 27% expenditure as a percentage of GDP from the existing 1.15 % to 2.50 % by 2025 28% 26% 29% 21% 23% Demand
Slide 20: Operational Review
Operational Review whe INH Narayana Health
Slide 21: Key Highlights – Q4 FY17
Key Highlights – Q4 FY17 Narayana Institute of Cardiac Sciences, Bengaluru, became the first hospital in the country to introduce a new smart- generation catheter device that will correct electrical signals causing disturbance in the heart rhythm Da Vinci Robotic Surgical System, installed at Ma
Slide 22: Strong Momentum across All Growth Levers
Strong Momentum across All Growth Levers Operational bed count(1) Occupied bed count(2) Second Largest * Healthcare Operator 2,255 Consolidation of operations across existing 2,189 2,099 units underpinning addition to capacity 5,932 5,453 5,347 Calibrated focused expansion across geographies of
Slide 23: Revenue Mix FY17: Strong Track Record of Topline Growth
Revenue Mix FY17: Strong Track Record of Topline Growth Operating Revenue(1) Business Mix 18,782 13,639 92% 6% 8,391 2% (2) Owned / Operated Hospitals Heart Centres FY13 FY15 FY17 (3) Other Anciliary Businesses Payee-Profile(4) Maturity-Wise(6) Cluster-Wise(6) Speciality-Profile(8) Details for FY17
Slide 24: Leadership across Karnataka & Eastern Clusters
Leadership across Karnataka & Eastern Clusters with Emerging Presence across Northern and Western Regions As of 31st March 2017, for the period FY17 Regional Hospitals(1) % of Hospital % of Hospital Operational Parameters(2) Cluster Operating Revenue(2) Operational Beds(1) (4) YoY Growth Op bed coun
Slide 25: Matured Units Continue to show Steady Growth
Matured Units Continue to show Steady Growth complementing Ramp Up of Newer Units Maturity(1) Hospitals(2) % of Hospital % of Hospital Key Performance Indicators(3) Operating Revenue(3,6) Operational Beds(2) YoY Growth ARPOB (INR mn) Occupancy(5) EBITDAR Margin(4) Over 5 years 8 71% 55% 8.0 64% 24.7
Slide 26: Financial Review
Financial Review whe INH Narayana Health
Slide 27: Operating Leverage coupled with Cost Efficiencies boosting the Margins
Operating Leverage coupled with Cost Efficiencies boosting the Margins Profitability Snapshot(1) Cost Structure(3) 3000 EBITDA PAT EBITDA Margin 20.00% Rental / Revenue Share 2,463 91.0% 89.2% 87.8% 18.00% 2500 16.00% 2000 1,893 26.0% 24.6% 24.1% 2.6% 14.00% 13.1% 2.9% 3.1% 1,298 12.00% 11.7% 1500 3
Slide 28: Consolidated Financial Performance
Consolidated Financial Performance Figures in INR mn, unless stated otherwise Profit and Loss Statement(1) Key Balance Sheet Items(1) Particulars Q4 FY16 Q4 FY17 FY16 FY17 Particulars 31st Mar 2016 31st Mar 2017 Total Operating Revenue 4,276 4,835 16,138 18,782 Purchase of medical consumables, drugs
Slide 29: Shareholding Pattern
Shareholding Pattern Shareholding as on 31st March 2017(1) Total Number of Shares 204,360,804 FIIs / DIIs and Retail 14.4% Mutual Funds- 6.3% FIIs- 6.0% Retail- 2.1% ESOP Trust 1.0% Others 3.3% PE Investors 17.5%(3) Promoter Group 63.9%(2) (1) Percentages might not add up to 100% due to rounding off
Slide 30: Thank you
Thank you © 2017 Narayana Hrudayalaya Limited., All Rights Reserved. Narayana Hrudayalaya and Narayana Health Logo are trademarks of Narayana Hrudayalaya Ltd In addition to Company data, data from market research agencies, Stock Exchanges and industry publications has been used for this presentation
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