Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (August 2013)
21 slides from Apollo Hospitals Enterprise's investor presentation, August 2013
Slide 1: Investor Presentation
Investor Presentation August 2013 Strictly Private and Confidential
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Apollo Hospitals Enterprise Limited (“AHEL” or the “Company”) solely for your information and for your use and may not be taken away, distributed, reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within
Slide 3: Key highlights
Key highlights Leading Private Sector Healthcare Services Provider in India Attractive Industry Opportunity Clinical Excellence and Strong Brand Value Strong Operating and Financial Track Record Well Planned Strategy to Deliver the Next Phase of Growth Experienced Management Team 2
Slide 4: Business snapshot
Business snapshot Leading private sector healthcare services provider in India Business Overview Consolidated Financials(1) (Rs. mn) FY09 FY10 FY11 FY12 FY13 • Promoted by Dr. Prathap C. Reddy (Padma Vibhushan, 2010) Gross Revenue 16,142 20,265 26,054 31,475 37,687 • Key Businesses Includes : YoY Gr
Slide 5: Evolution
Evolution Business Evolution 1983–1988 1989 –2000 2001–2004 2005–2010 2011–2016 Apollo Hospital, Chennai Indraprastha Apollo Apollo Gleneagles, Imperial Hospital, Bangalore Plan to add 2,685 beds by Apollo Health City, Hospitals, Delhi Kolkata 2 REACH Hospitals, and FY16 Hyderabad Apollo Specialty H
Slide 6: Geographic Presence
Pan India presence Apollo is the leading player in the Indian hospitals segment by geographic presence as well as business span and breadth of services offered. (8) Leading Hospital Players in India Details of Beds under operation Total Capacity Operational Beds No. of Hospitals (2) Category Wise Fo
Slide 7: Clinical excellence and quality healthcare services
Clinical excellence and quality healthcare services Focus on Excellence Strong Brand Value Strong, long standing relationship with doctors and JCI Accreditation for 8 hospitals- Bangalore, medical professionals Chennai, Delhi, Dhaka, Hyderabad, Kolkata, Focus on Key Specializations & Centers of
Slide 8: Attractive industry opportunity
Attractive industry opportunity Demand for healthcare services in India is expected to rise owing to favorable demographics. Private sector players are well-positioned to leverage this opportunity given low contribution of government spending. Healthcare Expenditure (as % of GDP)(1) (2009) Healthcar
Slide 9: Attractive industry opportunity (cont’d)
Attractive industry opportunity (cont’d) In-patient market and incidence of lifestyle diseases are on the rise. In-patient / Out-patient Market Size(1) (Rs. bn) No of Hospitalized Cases (mn) and In-patient Market(1) (Rs. bn) Patient volumes and spends are expected to grow rapidly, Increasing inciden
Slide 10: Robust financials
Robust financials Consistent improvement in financial performance across hospitals (mature and new), as well as across businesses (hospitals and standalone pharmacies). Performance Highlights Total Consolidated Revenue (1) (Rs. mn) Healthcare services: Improvement in operating Strong growth in rev
Slide 11: Robust financials (cont’d)
Robust financials (cont’d) Apollo is one of the few companies in India across capital-intensive industries to generate healthy returns on capital employed in the business. Rapid Improvement in ROCE Return on Capital Employed#—Healthcare Services (%)* 19% 17% 18% 1 Efficiency 2 15% 14% ROCE = (Asset
Slide 12: Strong operating metrics
Strong operating metrics Continuous improvement in key operating metrics is helping drive revenues and profitability. In-patient Admissions (’000) (1) Bed Occupancy Rate (2) (%) Operational Highlights Continued in-patient volumes growth Consistent bed utilization Occupancy rates remain high 313 Op
Slide 13: Cluster wise operational performance
Cluster wise operational performance Apollo has consistently delivered improvement across various operational parameters over the past few years, driving growth even in mature hospitals. AHEL Standalone Total (5) Chennai cluster Hyderabad cluster Others (1) Significant subs/ JVs/ associates (2) Part
Slide 14: Standalone Pharmacies: capturing the growth potential
Standalone Pharmacies: capturing the growth potential India’s largest organized pharmacy retail chain with a network of 1,526 stores. Overview Number of Standalone Pharmacies • Offers a wide range of medicines and surgical products, hospital consumables and over-the-counter products • Asset light bu
Slide 15: Operational performance: Standalone Pharmacy
Operational performance: Standalone Pharmacy Key Financials (INR mn) Key Comments Batch Particulars FY 12 FY 13 YoY% Upto FY08 Batch No. of Stores 468 443 EBITDA margins of FY 2007 batch of stores (most mature) at 6.3%. Revenue/Store 2.39 2.69 12.9% EBITDA/Store 0.12 0.15 24.5% Over 1,250 stores
Slide 16: Q1 FY14: Financial Performance
Q1 FY14: Financial Performance INR mn Standalone Financials Consolidated Financials Q1 FY 13 Q1 FY 14 yoy (%) Q1 FY 13 Q1 FY 14 yoy (%) Revenue 7,774 8,950 15.1% Income from Operations 8,256 9,581 16.0% Operative Expenses 3,997 4,637 16.0% Add: Share of JVs 557 637 14.5% Employee Expenses 1,257 1,39
Slide 17: Well Planned Strategy to Deliver the Next Phase of Growth (1/2)
Well Planned Strategy to Deliver the Next Phase of Growth (1/2) Optimise Asset ● Garner higher market share in select acute and tertiary care services. Utilisation in flagship ● Specific plan to further penetrate deeper into Cardiology and Oncology specialties. facilities and ● Enhance Out-Patients
Slide 18: Well Planned Strategy to Deliver the Next Phase of Growth (2/2)
Well Planned Strategy to Deliver the Next Phase of Growth(2/2) ● Chennai : Ensure continued dominance by expanding into West and South. New specialist standalone hospitals Cluster Strategy for to both support COE as well as increase dominance – Eg : Heart center / Birthing centre (CRADLE) , Women &
Slide 19: Planned Expansion
Planned Expansion Well planned strategy to address growing demand for healthcare service delivery in existing markets, new large markets and semi-urban markets. Defined Expansion Plan for Owned Bed Capacity Strategy for Expansion Total Focus on owned hospitals Estimated AHEL's Project Share of – P
Slide 20: Board of directors and key senior management team
Board of directors and key senior management team Board Members Key Senior Management Team Dr. Prathap C. • Executive Chairman, Founder K. Padmanabhan • Group President and has been with the company since 1996 Reddy (M.D, MBBS, FCCP, FICA and FRCS) • Conferred the Padma Vibhushan in 2010 • Responsib
Slide 21: Thank you
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