Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (March 2023)
47 slides from Apollo Hospitals Enterprise's investor presentation, March 2023
Slide 1: Apollo Hospitals Enterprise Limited Investor Presentation
Apollo Hospitals Enterprise Limited Investor Presentation March 2023 © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 1
Slide 2: Key Highlights
Key Highlights India’s Largest Clinical Attractive Engines Strong Prioritizing Annexure Integrated Pioneers Industry of Growth Financial & ESG Healthcare Opportunity Operational System Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 2
Slide 3: India's Largest Integrated Healthcare System
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Pioneers Opportunity of Growth Operational ESG Integrated Track Record Healthcare System © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 3
Slide 4: Transforming Healthcare delivery in India: Over 35 Years of legacy
Transforming Healthcare delivery In India : Over 35 Years of legacy Largest Hospital Largest Offline India’s Leading Retail 3rd Largest Private Chain in India Pharmacy in India Healthcare Network Health Insurer in India 70 hospitals 5,500+ stores in 1100+ cities and 343 primary clinics, 129 dental F
Slide 5: India's Largest Integrated Health System
India’s Largest Integrated Health System Apollo Specialty Services Apollo • Culture of innovation Hospitals CLINICAL • Clinical expertise OUTCOMES Apollo APOLLO CLINICS Pan–India • Learning Organisation Health Checks (Retail Healthcare) Hospitals One Patient, Empowered and engaged patients; fosterin
Slide 6: Largest Pan-India Hospital Chain
Largest Pan-India Hospital Chain Hospitals 70 ; Beds 9,957 Capacity Operational Hospitals Beds beds Tamilnadu Region North AHEL* (a+b) 70 9,957 9,273 20 2519 10 1437 Owned 8,544 7,860 43 Sub & JVs AP & Telangana Western Managed 5 851 851 Hospitals 12 1558 10 1271 Eastern Karnataka Total (a) 48 9,395
Slide 7: Transforming Retail Health through access and convenience
Transforming Retail Health through access and convenience Apollo Health & Lifestyle Ltd (AHLL) Looking at the market through Two broad levers Out-of-Hospital care • Outpatient Clinics • Diagnostics and dialysis • Day Surgery centers • Single Specialty Facilities Organizing the unorganized • Patholog
Slide 8: Largest Omni-Channel Digital Health Offering
Largest Omni-Channel Digital Health Offering Apollo HealthCo Ltd (AHL) Apollo 247 –Digital Platform Apollo 247 –Digital Platform As at March 31, 2023 ~25Mn+ ~7 Lakh+ ~6,000+ Chandigarh Registrations Daily Active Users Doctors 4 Uttarakhand Himachal Pradesh 46 5 Assam Punjab 93 21 New Delhi Daily Con
Slide 9: Highlights FY23
Highlights FY23 Healthcare Services Diagnostics & Digital Health & (Hospitals) Retail Health Pharmacy Distribution 43 Owned + 5 Managed Hospitals 22 Ambulatory care & Birthing Centers 5,541 Outlets 9,395 Owned & Managed Beds 562 Beds ~15.5% Private label / Generic sales 64% Occupancy 1,700+ Diagnost
Slide 10: Clinical Pioneers
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Opportunity of Growth Operational ESG Healthcare System Pioneers Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 10
Slide 11: Clinical pioneers bringing in tectonic shifts in the healthcare industry
Clinical pioneers bringing in tectonic shifts in the healthcare industry Bringing in Latest Technologies First 20 Robotic Advanced G4 Proton therapy 640 surgical systems Diagnostics Cyber-knife for cancer slice CT Largest minimally First MRI, CT, Pet CT in India Asia Pacific’s most advanced First in
Slide 12: Patient First Mindset
Patient First Mindset Clinical Excellence Service Excellence Execution Excellence Medically Known for Patient Care Through The Apollo Family Value for Money Clinical Excellence Service Excellence COEs Patient Care Plan Clinician Engagement Case Mix Outcomes Ward as a unit Best places to work Communi
Slide 13: World Class Outcomes driven by Systems and Protocols
World Class Outcomes driven by Systems and Protocols Apollo Hospitals Group aims at establishing the highest standards of clinical care and patient safety for all its hospitals irrespective of their location or size. Apollo Quality Program Apollo Clinical Excellence Multifaceted program measuring, c
Slide 14: Expertise driven by Academics & Research
Expertise driven by Academics & Research Campus Education Diplomate National Board Skilling & Upskilling Medvarsity AIMSR, Hyderabad 11 Nursing schools in India AIMSR, Chittoor 1 Nursing school Asia's Largest Healthcare Ed Tech The Apollo in Bhutan University, Chittoor 45 Specialties In partnership
Slide 15: Resulting in Higher Clinical Volumes
Resulting in Higher Clinical Volumes Pioneering in cutting edge treatment FY23 First First combined ~73,500+ 37,000+ 1,600+ liver transplant kidney & Liver transplant Cardiac Neuroscience Transplant2 Procedures1 Discharges First simultaneous First bilateral Minimally Kidney-Pancreas transplant Invas
Slide 16: Attractive Industry Opportunity
India’s Largest Clinical Attractive Engines Strong Financial & Prioritizing Annexure Integrated Pioneers of Growth Operational ESG Healthcare System Industry Track Record Opportunity © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 16
Slide 17: Hugely Under-Penetrated Market with Attractive Dynamics
Hugely Under-Penetrated Market with Attractive Dynamics Private sector players are well-positioned to leverage opportunity given low contribution of government spending Growing Indian Healthcare Delivery Industry Public healthcare expenditure low, with private sector accounting for bulk The healthca
Slide 18: Infrastructure lag provides strong growth tailwinds
Infrastructure lag provides strong growth tailwinds India lags other developed and emerging economies in healthcare infrastructure Global Median : ~29 Beds per10,000 people 71 43 29 26 25 21 21 19 14 Global Average : ~16 Physicians per 10,000 people 38 30 26 23 22 23 7.4 10 8 157 Global Average : ~4
Slide 19: Rapid Demand Growth Driven by Demographic Shifts
Rapid Demand Growth Driven by Demographic shifts, Changing consumption patterns, increasing affordability and favorable regulatory environment Non-communicable disease accounts for most number of deaths Population in 60+ age group to grow faster 11% 11% Communicable diseases 09% 10% 13% 60+ years 13
Slide 20: "Heal in India" Global hub for medical and wellness tourism
“Heal in India” Global hub for medical and wellness tourism HEAL IN INDIA Initiative, aims to The medical Growth in medical tourism expected Treatments mostly sought after promote Medical tourism market primarily due to (i) Technologically in India are high end treatments Value Travel valued at adva
Slide 21: Increasing Digital Adoption will transform every sector including Healthcare
Increasing Digital Adoption will transform every sector including Healthcare Data driven revolution in the country has led to a generation of digitally inclined consumer By 2025, Digital Will Transform India’s Economy, Sector By Sector Robust internet subscribers' growth and Smartphone penetration..
Slide 22: Engines of Growth
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Pioneers Opportunity Operational ESG Healthcare System of Growth Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 22
Slide 23: Optimize Hospital Occupancy through Enhanced COE focus and Payor mix
Optimize Hospital Occupancy through Enhanced COE focus and Payor mix Mature Hospitals New Hospitals 29 5,767 14 2,777 Hospitals1 Capacity Beds Hospitals1 Capacity Beds 5,476 65% 2,384 61% Operational Beds Occupancy rate Operational Beds Occupancy rate Focus on Centers of Extend and expand our Set be
Slide 24: Focused on Diagnostics & Primary Care as the Next Growth Vector
Focused on Diagnostics & Primary Care as the Next Growth Vector Primary Care Diagnostics Specialty Care Focus on taking Healthcare Aim for Enhancing Market Share Sustained growth with synergies Closer to Communities and complete pan-India expansion to Apollo Ecosystem Network expansion via various f
Slide 25: HealthCo: Building Scale through Customer Centricity
HealthCo : Building Scale through Customer Centricity • Clinical Intelligence Engine (CIE) to empower doctors deliver better care and patients to access Monetizing PHR analytics on-demand care and CIE • Patient Health Records (PHR) to enable continuum of care; one of world’s largest PHR systems with
Slide 26: Strong Financial & Operational Track Record
India’s Largest Clinical Attractive Engines Strong Prioritizing Annexure Integrated Pioneers Industry of Growth Financial & ESG Healthcare Opportunity Operational System Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 26
Slide 27: Strong Growth in Revenues across Businesses
Strong Growth in Revenues across Businesses FY23 FY13-FY23 FY13-FY23 FY13-FY23 $2.02 billion 16% 14% 20% Consolidated Revenue1 CAGR (Consolidated Rev) CAGR (HCS incl AHLL) CAGR (Pharmacy)2 86,768 Healthcare services SAP Others 79,891 67,045 57,297 51,426 50,022 48,206 45,157 40,851 48,760 2 37,033 3
Slide 28: Aided by Strong Operating Metrics
…..Aided by Strong Operating Metrics In-patient Admissions (‘000) Bed Occupancy Rate(1) % 540 478 Operating Beds 451 460 399 428 354 374 352 4,257 4,767 5,153 5,549 5,811 6,321 6,724 6,940 7,111 7,246 7,491 7,409 7,875 7,860 313 332 265 281 235 73% 73% 71% 72% 71% 68% 63% 64% 66% 68% 67% 63% 64% 55%
Slide 29: and Healthy Return on Capital Employed
….and Healthy Return on Capital Employed ROCE - Healthcare Services Offline Pharmacy Distribution excl 24|7 Operating cost Healthcare services excluding CWIP Health Co 46% 39% 33% 25% SAP 31% 20% 21% 17% 16% 15% 14% 14% 13% 11% 14% 14% 19% 10% 11% 15% 15% 6% 10% 9% 6% 7% 3% FY 09 FY 10 FY 11 FY 12 F
Slide 30: Consolidated Financials FY23
Consolidated Financials FY23 (` mio) Note 1 : Healthcare Diagnostics & Digital Health Covid Vaccination revenues in FY23 ` Mio & Pharmacy Consol Services Retail Health Distribution Hospitals : ` 3,217 mio Total Revenues 86,768 12,311 67,045 166,125 Clinics : ` 1,893 mio EBITDA (Post Ind AS 116) (Pre
Slide 31: Consolidated Healthcare Services Performance FY23
Consolidated Healthcare Services Performance FY23 (` mio) Healthcare Serv Healthcare Serv Healthcare Serv ` Mio Group (New & Volume grew by 18% from 460,152 in FY22 Group (Mature) Group Others) to 540,881 in FY23. No of Hospitals 29 14 43 Operating beds 5476 2384 7860 Occupancy 65% 61% 64% Revenue 6
Slide 32: Region wise Operational Parameters
Region wise Operational Parameters Tamilnadu Region AP, Telengana Region (Hyderabad Total (6) (2) (Chennai & others) (1) & others) Particulars FY 22 FY 23 yoy (%) FY 22 FY 23 yoy (%) FY 22 FY 23 yoy (%) FY23 ARPOB in Metro cities at No. of Operating beds 7,875 7,860 2,131 2,112 1,344 1,297 ₹ 61,129
Slide 33: AHLL Financial Performance FY23
AHLL Financial Performance FY23 (` mio) FY23 Clinics Diagnostics Sugar Dental Dialysis Cradles (IP) IVF Spectra (IP) Network 343 1,750 58 129 111 9 17 11 AHLL Core Revenues (excluding Covid Footfalls/Day* 4,920 12,154 714 316 1,649 47 33 72 Vaccination, Covid Testing and Isolation Gross ARPP (Rs.)*
Slide 34: Diagnostics: Key Parameters
Diagnostics : Key Parameters Gross Revenue (₹ Mn)1 EBITDA* (₹ Mn)2 Operational footprint (as of Mar 31, 2023) 3,988 3,827 256 1,522 14% 16% 7.5% ~200 5% 1,087 1,040 940 1,031 3,571 5% 5% 287 Cities presence 816 413 118 24 15 2,466 173 148 in India 99 922 916 1,016 39 51 50 675 717 Q4 FY22 Q1 FY23 Q2
Slide 35: Health Co Financials FY23
Health Co Financials FY23 Online Pharmacy Key milestones : Digital Business Offline Pharmacy Total Health ` Mio Distribution & Distribution Co o Digital platform delivered GMV : Rs 1,643 cr in FY 23, with YoY Apollo 247 growth of 266% over FY 22. New business segment IP/OP launched Total Revenues 59
Slide 36: Prioritizing ESG
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Pioneers Opportunity of Growth Operational Healthcare System Track Record ESG © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 36
Slide 37: Impact on Key Stakeholders
Focusing on Material Topics Each stakeholder Our modes of constituency is important engagement with Major (3) and means something our key stakeholders 1 2 different for us and we together with the Impact on Key Stakeholders 11 remain committed to their materiality process interests while growing giv
Slide 38: Sustainability Strategy
Sustainability Strategy E nvironmental Reducing Environmental Impact while ensuring Efficiency S ocial Patient and Customer Satisfaction 4 Innovation to Drive Highest Quality to Ensure Patient Safety G overnance Privacy and Protection of Data as we Digitalize Efficient and Green Supply 5 Accessible
Slide 39: Caring for the Environment
Caring for the Environment Focus Areas Water Energy Waste Management Fighting water scarcity by being efficient. Third 20% reduction in energy in our Bio Waste, Biomedical Waste, party water audits are carried out to promote 17 largest hospitals usage Hazardous Waste, and Plastic Waste water conserv
Slide 40: Employer of Choice
Employer of Choice “Our people are our most valuable resource, and we are committed to their welfare, health and wellness” A shortage of skilled and trained clinical, nursing, and allied workforce remains a challenge. However, through our training and educational institutions like Nursing schools an
Slide 41: Patient Centric Care
Patient Centric Care Patient and Customer Satisfaction Accessible Healthcare and Engaged Privacy and Cybersecurity with Underserved Communities Responsible Billing practices: Subsidized Patient Funding – Partnering with Information Security Management Systems High level of transparency from Admissio
Slide 42: Our Approach to Governance
Our Approach to Governance Board Key Features Newly appointed Lead Independent Director Gender Parity Board Skills Matrix in our Annual report (Pg no : 100) 55% 53% The Board has established a CSR and Sustainability Independent 47 % Committee which steers the materiality process and focus areas. Man
Slide 43: Looking Forward.......
Looking Forward……. We believe our journey to become ESG Rating history shows a sustainable healthcare provider is Corporate ESG Performance five most recent rating actions through continuous improvement. 50 98 Companies in the industry Sustainability is a strategic 45 AAA imperative for us - not a c
Slide 44: Annexure
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Pioneers Opportunity of Growth Operational ESG Healthcare System Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 44
Slide 45: Basis of Consolidation
Basis of Consolidation Subsidiaries Location Description AHEL Ownership AHEL Standalone Hospitals (100% Ownership) Location Material Subs Chennai Main Chennai Apollo Health Co limited India Digital Omni-Channel Healthcare services 100.00% ACI - Chennai Chennai Apollo Health and Lifestyle Ltd. India
Slide 46: IND AS 116: Impact on P&L and Balance Sheet – FY23
IND AS - 116 : Impact on P&L and Balance Sheet – FY23 AHEL Standalone (post IND AS 116) AHEL Consolidated (post IND AS 116) Balance Sheet Profit & Loss Balance Sheet Profit & Loss Revenue Revenue Right of use 5,283 Asset as of Other expenses 12,317 Right of use Asset as of 31 March, st 31st March, 2
Slide 47: THANK YOU
Apollo Hospitals Enterprise Limited THANK YOU © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 47
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