Metropolis Healthcare Ltd. · NSE:METROPOLIS
Metropolis Healthcare — Q3 FY2020 Earnings Presentation
53 slides from Metropolis Healthcare's earnings presentation, Feb 6, 2020
Slide 1: Filing cover letter to stock exchanges
Ref: MHL/Sec&Legal/2019/73 Date: February 06, 2020 To, Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot No. C/1 . G Block, Mumbai ~ 400 001 Sandra -Kurla Complex,
Slide 2: Reaching Out Responsibly - Investor Presentation February 2020
Reaching Out RESPONSIBLY Investor Presentation - February 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Metropolis Healthcare 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
Slide 4: Q3 & 9MFY20 Financial & Operational Performance
Q3 & 9MFY20 Financial & Operational Performance
Slide 5: Q3 & 9MFY20 Financial & Operational Highlights
Q3 & 9MFY20 Financial & Operational Highlights Metropolis is a Strong Consumer Focused and Trusted Pathology Brand in the Indian Diagnostics space ... Rs. 223 Cr 55% 2.42 Mn 4.78 Mn +17.0% YoY for Q3 +14.0% YoY for Q3 +17.5% YoY for Q3 +300 bps YoY for 9MFY20 Rs. 649 Cr 7.34 Mn 14.29 Mn Quality Focu
Slide 6: 9MFY20 Financial Performance
9MFY20 Financial Performance Revenue Rs. (In Crs) Reported EBIDTA Rs. (In Crs) PAT# (Rs. in Crs) Q3 +16.1% Q3 26.48% 27.77% Q3 15.87% 17.25% Q2 Q2 +21.8% Q2 +26.2% 649 Q1 Q1 Q1 559 180 112 +17.0% 223 148 63 89 190 +22.8% +34.1% 42 51 31 +15.6% 223 193 +18.9% 63 +43.7% 43 53 30 +15.7% 176 203 +24.0%
Slide 7: Robust Operating Performance
Robust Operating Performance No. of Patient Visits (In Mn.) Revenue Per Patient (In Rs.) +15.5% +4.8% +12.8% 7.34 836 854 884 ✓Total patient visit has increased from 8.9 6.35 778 2.12 Mn in Q2FY19 to 2.42 Mn in 7.0 7.7 +14.0% 2.42 2.12 Q3FY20 registering a growth of 14.0% Y-o-Y 2.66 2.30 +15.7% ✓ Nu
Slide 8: Network Expansion
Network Expansion Laboratory Network Service Network Lab on Lease ARC Greenfield Third Party PSCs +8.7% 2,781 119 125 Owned PSCs 2,336 623 106 19 20 6.6x 95 8 2 575 1,650 520 1,898 93 98 100 104 887 1,506 428 308 879 151 356 117 223 251 255 260 160 FY17 FY18 FY19 9MFY20 FY16 FY17 FY18 FY19 9MFY20 Ne
Slide 9: Increasing Share of B2C Business
Increasing Share of B2C Business B2C Contribution in Focus Cities for 9MFY20 (Rs. in Crs) ➢ B2C segment now contributes 55% of the revenue B2C Ratio 45% 48% 52% 52% 55% from Focus cities as compared to 52% in 9MFY19. +16.3% ➢ Revenue from B2C in focus cities stands at 54% for 233 200 Q3FY20 as compa
Slide 10: Market Dynamics – a long runway of growth
Market Dynamics – a long runway of growth Revenue Mix between Focus, Seeding & Others Cities 22% 27% FY19 9M FY20 55% 59% 19% 18% Others Seeding Focus Improving Revenue Diversification ➢ The revenue diversification is improving, and we were able to increase our revenue contribution from other cities
Slide 11: Operational Highlights of Q3FY20
Operational Highlights of Q3FY20 New CFO appointed - Mr. Rakesh Agarwal – He has over 20 years of progressive experience in Finance domain including Business Finance, Financial Management & Operations Management. His previous assignment was with Bharti Airtel Limited New CFO where he was heading the
Slide 12: Mobile App Launched with features enabling customers for ease of access
Mobile App Launched with features enabling customers for ease of access Expert TruHealth Risk Assessment TruHRA Customized Check-ups Booking Appointments See, Share & Store Fitness Tracker Reports Inner Health Tracking Medication Tracker Parameters Doctor’s, Hospital’s & Chat with Experts Metropolis
Slide 13: Awards and Accolades – Q3 FY19
Awards and Accolades – Q3 FY19 Period Particulars October 2019 Metropolis won the award for Best IT Practices at the Data Center Summit, 2019 Metropolis won the 'Best Logistics Network Optimization’ & ‘Best use of November 2019 Technology in Logistics’ awards announced at the 5th Asian Supply Chain
Slide 14: Consolidated Adjusted Profit & Loss Statement
Consolidated Adjusted Profit & Loss Statement Profit & Loss (Rs. Crs.) Q3FY20 Q3FY19 Y-o-Y Q2FY20 Q2FY19 Y-o-Y Q1FY20 Q1FY19 Y-o-Y 9MFY20 9MFY19 Y-o-Y Revenue from Operations 222.8 190.4 17.01% 223.3 193.1 15.64% 203.3 175.8 15.67% 649.4 559.3 16.11% Cost of Raw Material Consumed 52.3 42.6 52.7 45.8
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Sep-19 Mar-19 Equity & Liabilities (Rs. Crs.) Sept-19 Mar-19 Non-current assets 353.2 247.9 Equity 486.8 420.0 Property, Plant and Equipment 120.7 116.7 Equity Share capital 10.0 10.0 Goodwill 90.6 78.6 Other equity 475.1 408.5 Other intangible assets 22.
Slide 16: Overview
Overview ...• •
Slide 17: We are Metropolis: The Pathology Specialist
We are Metropolis: The Pathology Specialist To be a respected healthcare brand trusted by clinicians, patients and stakeholders. Positively impact lives of patients Vision in their most anxious times and turn their anxiety in to assurance. Helping people stay healthy, by accurately revealing their 3
Slide 18: Journey to Leadership Position
Journey to Leadership Position ✓ First Referral Laboratory Set- ✓ Ameera Shah takes charge ✓ Secondary transaction by ✓ Exit of Warburg Pincus, ✓ Strong Thrust on Retail up by Founder & Chairman Dr. Foxcreek Investment Limited management control by frontend Expansion ✓ First major acquisition - Sush
Slide 19: Three decades of Delivering Value to Stakeholders
Three decades of Delivering Value to Stakeholders Leadership Position Across Industry METROPOLIS Focus Area ACCREDITATION CUSTOMER & QUALITY EXPERIENCE ROCE SPECIALITY SCORES SCORE BUSINESS INCREASED INFRASTRUCTURE PRODUCTIVITY REVENUE PER REALISATION PER TEST MENU OF YOUNG PATIENT PATIENT NETWORK 1
Slide 20: Key Drivers for Growth
Key Drivers for Growth 01 Industry Growth 05 Expansion Plan 02 Value Chain 06 Quality 03 Business Model 07 People 04 Service Network 08 Digital Transformation 19
Slide 21: Diagnostic Industry Poised to grow…
1a. Diagnostic Industry Poised to grow… Size of Indian Healthcare Industry Size of Indian Diagnostics Market Indian Diagnostics Industry Breakup (in Billion $) 6.0% 4.0% 35% 12.3 9.0% Healthcare Delivery - Hospitals Pharma 9.1 42% Pathology 13.0% Medical Devices Radiology 68.0% Diagnostics 58% Healt
Slide 22: Top players to continue to acquire market share of standalone centers
1b. Top players to continue to acquire market share of standalone centers Brand Awareness Increased brand awareness amongst patients and customers towards quality, reliability and test accuracy Service + Scale Large Test menu Large Test menu by organized diagnostics chains Factors leading Consolidat
Slide 23: Presence in key pockets of Value Chain
2.Presence in key pockets of Value Chain Diagnostic Industry - Fragmented Routine Test Metropolis Focus Highly Fragmented Market Low Quality Standard Majority Diagnostic Players Technician + Run Lab Low on Technical Qualifications & Moderate Competition Presence across Accreditations (99.9% labs rem
Slide 24: Hub & Spoke Model to scale efficiently
3. Hub & Spoke Model to scale efficiently Home Collection Global Reference Lab (GRL) Individual Patient (B2C) Wholesale (B2B) RRL / Satellite Lab Express Lab Third Party Lab / Hospitals / ARCs Collection Patient Centres Patient Leverage Widespread Delivery to our Enhances Collection of Greater netwo
Slide 25: Patient Centric Network
4.Patient Centric Network Global and More than ~4,000 Present in 19 States 35+ Years National Over 10,000 Patient Test’s & Profiles & 210 cities Quality Touch Points of Credible Operations Accreditations Why Metropolis ? Collection ✓ Conclusive Diagnosis with Large Centres Pics test Menu backed by H
Slide 26: Asset Lite Expansion Plan
5. Asset Lite Expansion Plan Asset Light Model Network Expansion Strategy Doctor APSC/ Lab on ✓ Focus on Asset Light Model to achieve Geographic Expansion with Bleeding DAPSC Lease High Scalability Point (DBP) ✓ The A-PSC and D-APSC Model allows us to grow our revenues by providing management and br
Slide 27: Quality in Core
6a. Quality in Core Quality Scores of 98.5% in 2018-19 by College Quality protocols following global standards of American Pathology 99.9% of industry labs remain un-accredited with lack of minimum standards in the industry Large Investments in Focus on Governance Information and rigorous audit Tech
Slide 28: Globally Compliant Quality Standards
6b. Globally Compliant Quality Standards No. of Audits Conducted by PAC Team “Global Lab Accreditations” FY 17-18 18-19 H1 20 Q3 20 665 1,312 597 239 ✓ PAC Team: Special Pre Analytical Care Team constituted as part of the Quality Assurance Team ✓ This team conducts thorough internal audits as per NA
Slide 29: People are our greatest asset
7. People are our greatest asset ✓ New HR Management System for ✓ Strong culture equal opportunity ✓ Full Fledged Learning Management automated processes improving workplace System that is used for daily training productivity and ensuring availability of across the Company. employee data on demand ✓
Slide 30: Leveraging IT for Competitive Advantage
8. Leveraging IT for Competitive Advantage 1 2 3 4 Improving Business revenue Improved Operational Improve Customer Cost Saving & Optimization generation capabilities Efficiency Experience ✓ Zero Data Loss; 100% data ✓ IBM Watson Campaign Automation replication in remote location ✓ Mobility Applicat
Slide 31: Digital Transformation to improve efficiency
8a. Digital Transformation to improve efficiency 1 Standardization Achieve standardization across 2 Reduced Errors Reduce incidence of errors due to human intervention our operations Patients & Customers 3 Technical Operations Provide convenience to our 5 Monitor Technical Operations patients and cu
Slide 32: Future Strategy
Future Strategy 01 Increase Services 02 Increase Scale 31
Slide 33: Customer Centricity: In everything we do
Customer Centricity: In everything we do 01 02 03 04 Easy to Interpret Test Sample Collection from Conclusive Diagnosis Digital Access Report Doorstep We also have a policy of ensuring We have developed a Mobile Conclusive Diagnosis to our Application We offer our patients a Detailed We have increas
Slide 34: Sustainable Growth across Network
Sustainable Growth across Network Network of 210 Cities Criteria % of Revenue for FY19 Strategy ✓ Increasing the number of Collection Centers ✓ Enhancing our Laboratory Capacity and Test Menu by adding Latest Machines and Technology ✓ High Potential Market Focus Cities ✓ Expanding B2C share of Busin
Slide 35: Focus on Profitable B2C Business
Focus on Profitable B2C Business Increase B2C sales mix Deeper Network Strengthen Productivity of Wellness initiatives Penetration Metropolis Brand existing young network for consumers Deeper centre penetration Expand Branded third- Increase number of referring Creating an easy and engaging in Focus
Slide 36: Growing Inorganically– A Win-Win Strategy
Growing Inorganically– A Win-Win Strategy Build Industry Best practices Introducing Standardized Machines and SOPs in a phased manner resulting in efficiency and quality enhancement Access to Metropolis Network Providing acquired entities access to Metropolis Sales and Marketing Network to improve t
Slide 37: Successful Track Record of Inorganic Strategy: Acquisitions in 15 years
Successful Track Record of Inorganic Strategy : 22 Acquisitions in 15 years Revenue at the time of Few of the Acquired Companies Year of Acquisition Location Revenue for FY19 acquisition Sudharma Metropolis Health Services 2003 Kerala Rs. 1.8 Crores Rs. 50.4 Crores Private Limited Golwilkar Metropol
Slide 38: Plenty of Opportunities for Growth…
Plenty of Opportunities for Growth… Growing our offering of Test Packages to Increase Revenue Test Packages Metrics. Customized packages to Institutional Customers Expansion and Personalized Packages to Individual Patients are key Leverage our vast capabilities in Molecular Diagnostics, Aggressive N
Slide 39: Historical Financial & Operational Performance
Historical Financial & Operational Performance
Slide 40: Pan India Presence…
Pan India Presence… Metropolis Service Network Metropolis Service FY18 FY19 Network Laboratories 106 119 Owned PSC’s 251 255 Third Party PSC’s 879 1506 ARC’s 520 575 Total 1756 2455 On Consolidated Basis Maps not to scale. All data, information, and maps are provided "as is" without warranty or any
Slide 41: …with Aggressive Network Expansion Strategy
…with Aggressive Network Expansion Strategy Laboratory Network Service Network ARC Third Party PSCs +10.2% 119 Owned PSCs 2,336 106 95 575 89 +76.1% 1,650 520 887 1,506 308 879 428 151 356 117 251 255 160 223 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Network Strategy Highlights Young Individuals Patie
Slide 42: Better than industry growth
Better than industry growth Revenue (In Rs. Crs.) Bolstering Growth in Wellness Segment Metropolis Wellness revenue contribution for +16.9% 760 Metropolis is 5.5% which grew at 27% in FY19 644 545 18.1% 475 18.1% This market is expected to grow at a CAGR of 20% over next 3 financial years (Frost & S
Slide 43: Robust Operating & Financial Performance
Robust Operating & Financial Performance No. of Patient Visits (In Mn.) Revenue Per Patient (In Rs.) Metropolis realization per +8.9% +7.3% test and sample is higher than 8.9 836 854 7.7 778 industry owing to:- 7.0 +15.6% 692 6.9 ✓ ~41% of specialised test FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 con
Slide 44: Well growing B2C Mix
Well growing B2C Mix Retail contribution in Focus Cities to Total Revenue 52% 45% 48% 43% Primary Strategy of the Company is to increase the Retail share in focus cities to 65% FY16 FY17 FY18 FY19 Chart shows B2C contribution over the years in focus cities; Mumbai, Chennai, Bangalore, Surat and Pune
Slide 45: Financial Highlights
Financial Highlights Revenue (In Rs. Crs.) EBITDA (In Rs. Crs.) before CSR and one time share based and other expenses +16.9% 760 207 +17.9% 644 178 545 152 475 127 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 EBITDA% PAT (In Rs. Crs.) before CSR and one time share based and other expenses before CSR and
Slide 46: Financial Highlights
Financial Highlights ROCE (%) ROE (%) 46.5% 31.2% 43.6% 43.1% 29.4% 27.9% 38.3% 26.0% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 On Consolidated Basis 45
Slide 47: Profit & Loss Statement
Profit & Loss Statement Profit & Loss (Rs. Crs.) FY19 FY18 FY17 FY16 Revenue from Operations 760.1 643.6 544.7 475.5 Cost of Material Consumed 173.5 145.9 135.1 124.6 Laboratory testing charges 5.6 5.7 2.5 3.1 Total Raw Material 179.1 151.6 137.6 127.7 Gross Profit 581.0 492.0 407.1 347.8 Gross Prof
Slide 48: Balance Sheet
Balance Sheet Assets (Rs. Crs.) Mar-19 Mar-18 Mar-17 Mar-16 Equity & Liabilities (Rs. Crs.) Mar-19 Mar-18 Mar-17 Mar-16 Non-current assets 248.2 230.1 230.1 170.6 Equity 419.9 429.1 344.1 293.9 Property, Plant and Equipment 116.7 112.3 105.2 105.6 Equity Share capital 10.0 9.5 9.5 9.5 Capital Work I
Slide 49: Board of Directors and Management Team
Board of Directors and Management Team
Slide 50: Board of Directors
Board of Directors Dr. Sushil Kanubhai Shah Ameera Sushil Shah Mihir Jagdish Doshi Chairman & Executive Director Managing Director Non-Executive Director Holds a bachelor’s degree in Medicine and Surgery Holds a bachelor’s degree in Business Holds a bachelor’s degree in Science from New and a degree
Slide 51: Management Team
Management Team Vijender Singh Dr. Nilesh Shah Chief Executive Officer President and Chief of Science & Innovation Holds a bachelor’s degree in Science from Kurukshetra Holds a master’s degree in Engineering from University of University and completed an Executive Education Mumbai and a Diploma in M
Slide 52: Awards & Accolades
Awards & Accolades 2010 “Diagnostic Services Company of the Year” by Frost & Sullivan 2012 “Outstanding Quality Diagnostic Services” by HIV Congress 2012 2014 “Most Promising Brand” by the World Consulting and Research Corporation “Quality Brand” by Quality Brands India 2015 “Best Diagnostic Company
Slide 53: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Metropolis Healthcare Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – U73100MH2000PLC192798 CIN - U74140MH2010PTC204285 Mr. Rakesh Agarwal - CFO Mr. Shogun Jain / Mr. Sagar Shroff Email Id – rakesh.agarwal@metropolisindi
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