Medplus Health Services Ltd. · NSE:MEDPLUS
Medplus Health Services — Q4 FY2022 Earnings Presentation
26 slides from Medplus Health Services's earnings presentation, May 2022
Slide 1: Fourth Quarter FY2022 Investor Presentation
FOURTH QUARTER FY2022 INVESTOR PRESENTATION Corporate information Performance update Financial results MAY 2022
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by MedPlus Health Services Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 3: Executive Summary: Q4FY22 and FY22
Executive Summary Executive Summary: Q4FY22 And FY22 1 2x more store openings in FY22 4 Stable operating performance of mature stores (>12m) 2,748 stores as on 31-Mar-22 10.3% Store Level EBITDA margin Gross store openings of 747 in FY22 vs. 373 in FY21 63.1% Store Level Operating ROCE Gross store o
Slide 4: MedPlus – Leader in the Attractive Pharmacy Space
MedPlus – Leader In The Attractive Pharmacy Space Overview Fastest Growing Retail Segment Large Headroom to Grow 30% Pharmacy 25% 25% Food & Grocery 22% Jewellery 21% 20% Apparel 16% 16% 0% 20% 40% 60% 80% 100% 15% 14% Organized Retail Unorganized 10% 8% Better Unit Economics 5% Pharmacy: High reven
Slide 5: The MedPlus Story
The MedPlus Story Overview MedPlus caters to the healthcare and 2006 16 years c.770m+ household needs of Started in Hyderabad A Trusted Brand Bills Cut Since Inception the neighborhoods we operate in We are omni- 2,748 stores 7 338 channel: Digital and Stores States Cities neighborhood stores MedPlu
Slide 6: Cluster Based Network Enables Profitable Omni-Channel Service
Cluster Based Network Enables Profitable Omni-Channel Service Overview Stores As On Mar-22 Strong Cluster Based Network Strong network of 2,748 stores across Metros, Tier-One, Tier-Two and beyond. 2,748 stores 2- hour delivery Ability to service 100% market – acute + chronic Online only players cann
Slide 7: Scale Allows a Large Private Label Basket: 850+ SKUs
Scale Allows A Large Private Label Basket: 850+ SKUs Overview Pharma and Related Non-Pharma Pharma Over 578 products covering Chronic, Acute, OTC & Other Pharmaceutical products Non-Pharma Over 272 products covering, packaged food, baked goods, dry goods, cleaning products, cosmetics and toiletries
Slide 8: Poised for Growth
Poised for Growth Overview Key Pillars Of Growth MedPlus has an established base of operations in seven key states. Therefore, we will: Growth in existing clusters and • Further grow in cities where we have market leadership. Metro and Tier - One followed A by Tier - Two and beyond develop new clust
Slide 9: FY2022 Highlights
Results Update FY2022 Highlights ₹ 37,793m Revenue ₹ 7,969m Gross Margin • Increase by 23.1% vs FY21 • 21.1% gross margin (+0.1% vs FY21) • 12.7% private label (+2.6% vs FY21) Picture to be 667 Store Net Additions 18.1% yoy: Stores > 12 months change • 747 gross additions • 18.1% revenue growth vs.
Slide 10: Q4 FY2022 Highlights (1/2)
Results Update Q4 FY2022 Highlights (1/2) ₹ 9,659m Revenue ₹ 2,059m Gross Margin • ₹ 1,602m increase vs. Q4FY21. 19.9% • 21.3% gross margin (+0.8% yoy, yoy +0.6% qoq) • ₹ 325m increase vs. Q3FY22. 3.5% qoq • 13.0% private label (+3.1% yoy) 271 Store Net Additions 7.8% yoy: Stores > 12 months • 288 g
Slide 11: Q4 FY2022 Highlights (2/2)
Results Update Q4 FY2022 Highlights (2/2) Revenue, ₹m EBITDA and Operating EBITDA, ₹m 19.9%, Q4FY22 over Q4FY21 Pharmacy 5.0% 7.5% 4.1% 4.3% 4.1% 9,659 9,552 Operating 1,007 9,335 EBITDA 9,247 Margin 704 689 688 647 653 8,057 383 374 366 295 Gross 20.5% 22.1% 20.1% 20.8% 21.3% Operating 4.8% 7.4% 4.
Slide 12: Stores Added in Last 12 Months
Results Update 667 Stores Added In Last 12 Months As On Mar-21 As On Dec-21 As On Mar-22 Presence 2,081 2,477 2,748 We are present in stores stores stores key 7 states, accounting for c.38.4% of India’s population2. The key urban centers are: Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Nagpur, P
Slide 13: Stores Added in Last Quarter
Results Update 271 Stores Added In Last Quarter Q4 FY22 Openings Q4 FY22 Closures Q4 FY22 Closure Reasons 5.4 We opened 288 288 17 stores in Q4FY22. stores stores 4 There were 17 closures 10 3 3.8 6.9 Relocation Franchisee withdrawn Others Average age (years) 1. Color index for pie-chart as below: M
Slide 14: Young Store Network: 27% Less Than 12 Months Old
Results Update Young Store Network: 27% Less Than 12 Months Old Pharmacy: Count Pharmacy: Age Structure of Stores1 Stores 2,081 2,165 2,326 2,477 2,748 18% 21% Openings 3,000 24% 25% 27% 271 Maintaining an 151 12% increasing pace of 2,500 10% 161 10% 11% store openings 13% 141 84 2,000 1,500 2,748 2
Slide 15: Profitable Older Stores: 12+ Months
Results Update Profitable Older Stores: 12+ Months Store Level Revenue Growth1 Store Level EBITDA Margin Store Level Operating ROCE2,3 82.8% 12.4% 28.4% 10.5% 10.3% 66.4% 10.0% 9.7% 61.4% 61.0% 58.9% 7.8% 4.2% 2.8% -7.1% 1. Growth is yoy 2. See Glossary for definition 3. Annualized by multiplying th
Slide 16: Revenue Mix: Increasing Share of Private Label
Results Update Revenue Mix: Increasing Share Of Private Label Revenue Mix: By Product Category Revenue Mix3: By Location of Stores 2.8% 2.6% 6.1% 2.5% 2.3% 6% Product mix 7% 7% 8% 8% 9.9% 11.9% 13.0% 14.7% 11.1% Trend of 20% 21% 21% increasing share 11.3% 11.4% 11.1% 21% 22% from Private 11.3% 10.9%
Slide 17: Omni-channel: Profitable With Negligible Acquisition Costs
Results Update Omni-channel: Profitable With Negligible Acquisition Costs Channel Revenue Channel Delivery Pincodes1 and Delivery Hubs 1,000 10.0% 100% Hubs 217 292 352 377 392 Home Delivery Omni-Channel 900 864 9.0% 1,681 Our online 800 8.0% 80% 1,578 1,571 1,556 presence grows 724 693 677 1,426 on
Slide 18: Income Statement
Results Update Income Statement Snapshot of Income Statement, ₹m Q4FY22 vs. FY22 vs. Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Q4FY21 (yoy) FY21 (yoy) Revenue 8,057.3 9,334.5 9,659.1 19.9% 30,692.7 37,792.8 23.1% Gross Margin 1,648.0 1,938.1 2,059.0 24.9% 6,440.3 7,969.0 23.7% Gross Margin 20.5% 20.8% 21.3% 21
Slide 19: Income Statement: Business Segments
Results Update Income Statement: Business Segments Snapshot of Income Statement, ₹m Q3FY22 Q4FY22 Pharmacy Pharmacy Diagnostic Others Total Diagnostic Others Total Retail Retail Revenue 9,284.2 14.0 36.3 9,334.5 9,595.7 13.9 49.5 9,659.1 COGs and Expenses 8,888.0 27.8 52.7 8,968.5 9,199.1 89.9 74.9
Slide 20: Balance Sheet
Results Update Balance Sheet Snapshot of Balance Sheet, ₹m Mar-21 Dec-21 Mar-22 Assets Non Current Assets PPE and CWIP 926.9 1,326.5 1,823.2 Intangible assets 452.7 477.2 477.0 Right-of-use asset 3,848.7 4,907.6 5,891.6 Others 1,197.4 1,399.5 1,431.6 Total Non Current Assets (A) 6,425.7 8,110.8 9,62
Slide 21: Capital Productivity
Results Update Capital Productivity Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed NWC (days) 68 58 59 62 63 36.0% 47 45 43 43 Year 1 Stores 41 114 days 40 40 38 39 38 inventory (on Year 1 stores 19.9% revenue) 16.9% 15.8% Stores Older 24 23 23 22 Than 12 months 10.5% 17 39
Slide 22: Cash Management
Results Update Cash Management Cash Management, Q4FY22, ₹m Operating Cash Flow ₹ -112m Free Cash Flow ₹ -932m PBT+ Inc. in Taxes Capex Payment Interest Interest Decrease D&A+ Int. Working of lease received paid in cash of Lease Capital liabilities and cash Liability1 equiv.3 + Others2 1. Computed as
Slide 23: Appendix
Appendix A. Board and key management B. Glossary 22
Slide 24: A. Board and Key Management
A. Board and Key Management Appendix Committed Board Experienced Management Team Gangadi Madhukar Reddy Anish Kumar Saraf Atul Gupta Dr. Bhaskar Reddy Dr. Surendranath Mantena Hemanth Kundavaram Founded MedPlus and has MD at Warburg Pincus Investment partner at COO–Outlet Operations COO–MedPlus Mart
Slide 25: B. Glossary
B. Glossary Appendix Term Description Metro: Bengaluru, Chennai (and Avadi), Hyderabad, Kolkata (and Howrah), Mumbai (and Thane) City Categorization Tier One: Ahmednagar, Baramati, Kharagpur, Nagpur, Nashik, Panruti, Pune, Ranaghat, Vijayawada, Visakhapatnam (internal) Tier Two: Hundred and Nine cit
Slide 26: MedPlus Health Services Limited
MEDPLUS HEALTH SERVICES LIMITED www.medplusindia.com COMPANY SECRETARY Shilpi Keswani cs@medplusindia.com INVESTOR RELATIONS Prasad Reddy/ Tanushree Chaurasia ir@medplusindia.com MEDIA AND PRESS ENQUIRIES marketing@medplusindia.com
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