Max India Ltd · NSE:MAXIND
Max India — Q1 FY2023 Earnings Presentation
55 slides from Max India's earnings presentation, Aug 11, 2022
Slide 1: Cover letter to stock exchanges on revised presentation
August 11, 2022 To, Listing Department, Department of Corporate Services, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Towers, Dalal Street, Bandra-Kurla Kurla Complex Bandra (E), Mumbai – 400001 Mumbai – 400051 NSE Scrip Symbol: MA
Slide 2: Max India Limited Investor Presentation
Max India Limited Investor Presentation 11 August 2022
Slide 3: Safe harbour
Safe harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Max India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities
Slide 4: Executive Summary
Executive Summary • Max group, a leading conglomerate has a history of spotting early trends, creating iconic brands and successful businesses: ― Max Life Insurance (2000), Max Healthcare (2004), Max Bupa Health Insurance (2008) - all leading brands in their respective sectors ― Partnered with best-
Slide 5: Executive Summary
Executive Summary • Max group, a leading conglomerate has a history of spotting early trends, creating iconic brands and successful businesses: ― Max Life Insurance (2000), Max Healthcare (2004), Max Bupa Health Insurance (2008) - all leading brands in their respective sectors ― Partnered with best-
Slide 6: Max group history of spotting early trends and creating brands
Max group, a leading conglomerate has a history of spotting early trends, creating iconic brands and successful businesses • Entered Life insurance space in early 2000, in collaboration with one of the America’s largest Life Insurer, New York Life • 4th Largest Private Life Insurer with an AUM of ~
Slide 7: Max group's current areas of business
Max group’s current areas of business - life insurance, senior care and real estate 1 2 3 4 Revenues: USD 4.2 billion Diversified business model; Steady revenue growth & cost Strong history of entrepreneurship Customers: 4.8 million Well established board governance; rationalization leads to strong
Slide 8: Max group structure overview
Max group structure overview Holding Companies Operating Companies Life Insurance 14.7% 81.8%1 Senior Care 40.9% 100% 100% Real Estate 100% 100% 100% 49.5% Max Sponsors stake (%) in holding Holding Companies stake (%) in Operating companies companies 1 Max Life to be 80:20 JV with Axis Bank post ser
Slide 9: Executive Summary
Executive Summary • Max group, a leading conglomerate has a history of spotting early trends, creating iconic brands and successful businesses: ― Max Life Insurance (2000), Max Healthcare (2004), Max Bupa Health Insurance (2008) - all leading brands in their respective sectors ― Partnered with best-
Slide 10: Emerging senior care space in India
Our latest bet is on the emerging senior care space in India which is already a $ 10-12bn market and growing exponentially Fastest growing Increasingly Healthcare is largest age segment in living alone share of their India wallets, with multiple unmet needs 130 mn senior 17% of elderly are 3-4X spen
Slide 11: Antara's four focus areas of the opportunity
Of all the value pools, Antara has identified four focus areas comprising ~60 % of the opportunity High Senior care Products and Senior care value pools medical devices (except core healthcare), USD billion 0.5 1.6 Annual revenue Potential Independent Living (USD bn) Safety services Competitive inte
Slide 12: Executive Summary
Executive Summary • Max group, a leading conglomerate has a history of spotting early trends, creating iconic brands and successful businesses: ― Max Life Insurance (2000), Max Healthcare (2004), Max Bupa Health Insurance (2008) - all leading brands in their respective sectors ― Partnered with best-
Slide 13: Financial strength and unique competencies for senior care
Financial strength and unique competencies being leveraged to make a foray into the senior care space 01. 02. 03. Only listed player exclusively in Uniquely placed with our Only player providing an the Senior Care space background in healthcare, integrated Senior care infrastructure, hospitality eco
Slide 14: Integrated senior care ecosystem through four verticals
Antara’s focus is on creating an integrated senior care ecosystem through four verticals #SeniorCarestartswithAntara 2 3 1 4 13
Slide 15: Residences for seniors: demand-supply mismatch
1. Residences for seniors – fast emerging category with sizeable demand-supply mismatch 2 Senior Living Housing Unit Demand Upto 5K 5K-10K Expected demand1 for senior’s residences in India is 10K-15K 15K-20K expected to be 12x of the current supply Evolving needs of seniors, strong preference for >2
Slide 16: Care Homes: large and profitable market globally
2. Care Homes – While nascent in India, it is a large and profitable market globally Potential users Market Size Use cases Description # in ‘000 USD million Emerging competition ▪ 60+ years with dementia (stage 2+) Long stay ▪ >15 L income segment 120 600 1 Memory care ▪ Social stigma not relevant ▪
Slide 17: Care at Home: fastest growing healthcare segment
3. Care at Home - Home healthcare amongst the fastest growing segment within healthcare Care is shifting home … …and big bets are being made by players • Increasing cost of in-hospital treatment • 70% healthcare needs can be met at home with ~30% better recovery rate • Need for continuity of care po
Slide 18: Medical equipment (MedCare) opportunity in patient aids
4. Medical equipment (MedCare) - Huge underlying opportunity in patient aids segment Medical devices segment market size Medical devices segment market size Instruments & appliances • Category includes Mobility products, Physio products, Respiratory products, Orthotics etc. Diagnostic • Expected gro
Slide 19: Antara aspires to go pan-India in 3-5 years
Antara aspires to take its offerings pan-India in the next 3-5 years Antara plans to invest over Rs. 300 crore in the next four to five years across all business verticals and has sufficient liquidity to finance this growth. Company has outlined a five-year vision for Antara following its initial su
Slide 20: Executive Summary
Executive Summary • Max group, a leading conglomerate has a history of spotting early trends, creating iconic brands and successful businesses: ― Max Life Insurance (2000), Max Healthcare (2004), Max Bupa Health Insurance (2008) - all leading brands in their respective sectors ― Partnered with best-
Slide 21: Residences for Seniors
Residences for Seniors | = . . - b F it! Deane rr =
Slide 22: Early trend identified in 2010, aspiration for 5-7 communities
Early trend identified in 2010, aspiration to create 5-7 communities across India 2010 2011-12 2013-16 2017-18 2019-20 2021-present • Extensive market • Antara Senior • Antara brand • Best in class • 63% of • 93% of research, Living launched Dehradun apartments sold apartments have benchmarking inco
Slide 23: Antara Dehradun: 93% of units sold
1st Community - Antara Dehradun – 93% of units sold as of Q1FY23, repaid all debt, continues to be cash and PBT positive 14 Acres 5,75,500 1,400-6,600 Land Parcel of the Average Apartment company's flagship Saleable area Size range in Sq Ft project in sq ft 60,000 1.3 pm1 ~Rs 14,0001 Clubhouse size
Slide 24: Pivoting business model to reduce friction to purchase
Learnings from Dehradun being leveraged to pivot business model to overcome friction to purchase From To Focus on core competencies, Design, Sell, Operate, Buy, Build, Sell, Operate Strategic partnerships for land and construction Business Model Capex light Average apartment size ~3000 sqft Average
Slide 25: Antara Noida Phase 1: 82% of units sold
2nd Community - Antara Noida Phase 1: 82% of units sold as of Q1FY23 340 7,45,000 2,000 Saleable area Average Apartment Available Units in sq ft Size in Sq Ft 52:481 9.7 pm1 Rs 8,6501 Channel Mix (%) Sales Realisation Sales Velocity Cumulative sales and collection trend Direct: Partners Per Sq.ft Co
Slide 26: Antara Noida: targeting healthy IRRs
Antara Noida (Under Construction): targeting healthy IRRs through robust sales velocity, cost control and timely delivery Project Cost for Phase - Payment plan 1&2 (including Land) Antara Fee (S&M, PM) (break-up basis units sold) Rs.983 ~10% 10:90 Payment Plan Construction Linked Payment Plan Crore
Slide 27: Overall Progress View: Noida phase-I
Overall Progress View: Noida phase-I R3 R1 R1 R3 R2 R2 As on 24-05-2022 As on 26-07-2022 26
Slide 28: Foundation to Sixth, fourth & Third floor for R1,R2,R3
Foundation to Sixth, fourth & Third floor for R1,R2,R3 respectively 6 5 4 4 3 5 34 3 4 3 32 2 2 21 1G 12 1 G G G 1 2 S 1 S As on 26-07-2022 As on 26-07-2022 As As on on 12-07-2022 26-07-2022 27
Slide 29: Future projects focus on design, sales & marketing and operations
For future projects, Antara shall focus only on our core strengths of Design, Sales & Marketing and Operations Land 25-40% Design and architecture 5-8% Construction 35-50% Sales & Mktg 5-7% Operations NA Activities acquisition with benchmark costs (as a % Project management 10-12% IRR 20-25% of proj
Slide 30: Growth initiatives: Noida Phase II, Gurugram, Bengaluru, Pune
Growth Initiatives: Work initiated for Noida Phase II, Exploring opportunity in collaboration with Max Estates Limited (MEL) in Gurugram; Negotiations ongoing for Bengaluru and Pune Areas Update Next steps • Work initiated for Noida phase-II project, expected to • To obtain preconstruction clearance
Slide 31: Care Homes / Memory Care Homes
Care Homes/ Memory Care Homes
Slide 32: Care homes and memory care homes ecosystem
Care homes/memory care homes: an integrated and seamless ecosystem that provides care, comfort and companionship to seniors Offer support to seniors with ambulatory, neurological, ageing related conditions and those who need assistance in daily activities Several care options to choose from includin
Slide 33: Four Care Homes launched in Delhi NCR
Four Care Homes launched in Delhi NCR since inception with ~90 beds, Two in Gurugram II & Jasola in Q4FY22, 60 beds under pipeline, total ~150 beds expected by H1FY23 GK II: Gurugram: 32 rooms with 38 beds Gurugram II and Jasola: 26 rooms with 32 beds (single/ twin occupancy) (single/ twin occupancy
Slide 34: Care homes: encouraging trends and outlook
Care homes/memory care homes – encouraging trends and outlook Increase in market Increasing interest Show and tell, inspires Unit economics Unmatched interest and curiosity from competition confidence stacks up comprehensive offering • Consistent increase in • Increasing interest in • ~65-70% conver
Slide 35: Care Home net revenue grew 26% y-o-y
Care Home (CH): Net revenue at Rs 1.3 Cr, grew 26% y-o-y, led by improvement in occupancy Occupancy trend at Care Homes (bed days) Care Homes Revenue (Rs Lacs) 83% 26% YoY YoY 2800 2414 150 2400 132.2 123.3 2001 110.7 2000 120 104.7 99.9 1521 1533 1600 1322 90 1200 60 800 400 30 0 0 Q1FY22 Q2FY22 Q3
Slide 36: Gurugram CH proof of success, positive contribution margin
Gurugram CH Proof of success established; CH started reporting positive contribution margin ~ 5% in Q1FY23 ahead of business plan assumptions Net Revenue (Rs Lacs) Key learnings so far 82.6 • Per day pricing in the range of 76.4 INR 4000-5000 per day • 19 patients staying in the 60.6 centre as on Ju
Slide 37: Memory Care Home, South City, Gurgaon ready for launch
One of its kind Memory Care Home, South City, Gurgaon, ready for launch by Sep’22 36
Slide 38: Care at Home
Care at Home
Slide 39: Care at home: healthcare services in a home-like environment
Care at home: Delivery of Healthcare services in the comfort of a home like environment Every aspect of our service reflects the guiding principles behind our endeavors to nurture Convenience, Clinical Quality & Trust Convenience Clinical Quality Trust ▪ Superior health care ▪ Care plan curated by ▪
Slide 40: Care at home: service offerings
Care at home: service offerings second to none PHYSIOTHERAPY AND HOME CRITICAL CARE HOME DIAGNOSTICS REHABILITATION FOR CONTINUITY OF CARE NURSING CARE PATIENT CAREGIVER OTHER SERVICES AT HOME 39
Slide 41: India's first health check-up on wheels
Launched India’s first of its kind health check-up on wheels No hassle of travelling Blood Test 1st time in India Treadmill Test (TMT) Senior-friendly Doctor Consult Bone Mineral Density Trained and certified staff (BMD) Clinical competence at par X-ray with hospital standards Zero risk of hospital-
Slide 42: Care at home net revenue grew 20% y-o-y
Care at home – Net revenue at Rs 1.2 Cr, grew 20%^ y-o-y Transaction (Nos) Care at Homes Revenue (Rs Lacs) 600 6000 5600 22%^ Covid Non Covid 500 Covid Non Covid YoY 457.2 20%^ 5000 400 YoY 4000 3550 300 3000 360 200 2000 3000 3300 2800 2500 100 164.0 1000 2050 128.0 125.4 119.2 97.2 0 0 Q1FY22 Q2FY
Slide 43: MedCare
MedCare
Slide 44: MedCare: synergistic to existing business lines
MedCare : synergistic to existing business lines 1 Augments the seniors’ ecosystem – Residences, Care Homes, Care at Home and Medcare products 2 Opportunity to create a truly retail Antara brand –allowing for future brand extensions 3 Synergistic to existing business lines – Care Homes & Care at Hom
Slide 45: MedCare net revenue grew 1.6x y-o-y
MedCare: Net revenue at Rs 0.7 Cr, grew 1.6x^ y-o-y MedCare Revenue (Rs Lacs) 200 160 1.6x^ YoY 120 140 A Portfolio of over 1,100 Products 80 Pricing: Transparent/ fair pricing (Antara Retail Price) 40 72.9 65.4 47.8 40.7 Better product quality/ features/ packaging 31.5 0 Q1FY22 Q2FY22 Q3FY22 Q4FY22
Slide 46: Executive Summary
Executive Summary • Max group, a leading conglomerate has a history of spotting early trends, creating iconic brands and successful businesses: ― Max Life Insurance (2000), Max Healthcare (2004), Max Bupa Health Insurance (2008) - all leading brands in their respective sectors ― Partnered with best-
Slide 47: Consolidated Financials
Consolidated Financials Consolidated Financials 46
Slide 48: Well capitalised with ~Rs 550 crores of assets
Well capitalised to aggressively pursue growth opportunities with ~ Rs 550 crores of assets Senior living – Residences for Seniors Assisted Care Services – Other Assets^ (Rs 492 Cr) Invested Capital (Rs 385 Cr) Invested Capital (Rs 48 Cr) Antara 1.0 – Dehradun (Asset Heavy) Care at Home (Home Care)
Slide 49: Consolidated EBITDA turned positive to Rs 1.3 Cr
Consolidated EBITDA turned positive to Rs 1.3 Cr in CY from loss of Rs 3.4 Cr in PY, due to improvement in profitability of Doon project in CY and Max Skill reported losses in PY. Consolidated Revenue post divestment of Max Skill and COVID normalisation at Rs 46 Cr in Q1FY23,20% Particulars (Rs.
Slide 50: Balance Sheet: net worth of Rs 633 Cr
Balance Sheet: Strong BS position with Net worth of Rs 633 Cr Particulars (Rs in Crs.) 30-Jun-22 31-Mar-22 Particulars (Rs in Crs.) 30-Jun-22 31-Mar-22 Non-Current Assets 298.5 304.9 Equity 633.0 637.1 Non-Current Liabilities 59.6 63.8 Current Assets 556.5 549.2 Current liabilities 162.4 153.2 Total
Slide 51: Annexure
Annexure 50
Slide 52: Max India board of directors and leadership team
Max India: Highly experienced and versatile board of directors & leadership team Board of Directors Mr. Analjit Mr. Mohit Dr. Ajit Singh Singh Mrs. Tara Talwar Chairman & Singh Vachani Mr. Rajit Mehta Non Executive Independent Founder Vice Chairperson Managing Director Director Director Mr. Ashok Mr
Slide 53: Antara: Eminent Board to guide the Management team
Antara : Eminent Board to guide the Management team Board of Directors Mr. Analjit Singh Mrs. Tara Singh Mr. Rajit Mehta Vachani Executive Chairperson Managing Director & Chairman Emeritus Chief Executive Officer Dr. Shubnum Singh Mr. Pradeep Dr. Ajit Singh Mrs. Sharmila Pant Tagore Independent Inde
Slide 54: Antara Senior Care team
Antara Senior Care team Mrs. Tara Singh Vachani Vice Chairperson Mr. Rajit Mehta Antara Senior Living team Managing Director & Chief Executive Officer Mr. Ajay Agrawal Mr. Sandeep Mr. Kenneth Mr. Sanjay Ms. Jasrita Dhir Ms. Simardeep Mr. Badar Afaq Mr. Prem Mr. Shantanu Mr. Ashish Pathak Sannoo Bhat
Slide 55: Contact us
Contact us Company Investor Relations Advisors Max India Limited Strategic Growth Advisors Pvt. Ltd. CIN: L74999MH2019PLC320039 CIN: U74140MH2010PTC204285 Mr. Ajay Agrawal/ Mr. Nishant Kumar Mr. Rahul Agarwal / Mr. Aakash Mehta ajay.agrawal@antaraseniorcare.com rahul.agarwal@sgapl.net / nkumar@maxin