Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Q3 FY20 Earnings Presentation
26 slides from Healthcare Global Enterprises's earnings presentation, Feb 12, 2020
Slide 1: Cover letter to stock exchanges: Investor Presentation
February 12, 2020 National Stock Exchange of India Limited, BSE Limited, Compliance Department, Compliance Department, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai - 400051, Dalal Street, Mumbai - 400001, Maharashtra, India Maharashtra, India Sub: Investor P
Slide 2: HealthCare Global Enterprises Limited Investor Presentation Q3-FY20
HealthCare Global Enterprises Limited Investor Presentation Q3 – FY20 www.hcgel.com @2019 HCGEL – All Rights Reserved
Slide 3: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This pr
Slide 4: Leadership in specialty healthcare
Leadership in specialty healthcare 3 www.hcgel.com
Slide 5: Contents
Contents Overview Financial Highlights Appendix www.hcgel.com
Slide 6: Overview of HCG
Overview of HCG Snapshot of the Business Comprehensive cancer diagnosis and Specialty healthcare provider with a treatment services (through radiation therapy, medical oncology and surgery) focus on cancer and fertility Largest1 provider of cancer care in India 226 comprehensive cancer cente
Slide 7: Overview of HCG
Overview of HCG Entry into fertility business Today India’s largest through the acquisition of provider 50.1% in BACC Healthcare Pvt. of cancer care¹ Ltd. Awarded Oncology Leader 2013 of the Year by Frost & Sullivan Milann ranked #1 nationally 2011 Entry into the clinical laboratory business through
Slide 8: HCG's Cancer Care Network
HCG’s Cancer Care Network Network of Existing and Under HCG Network Development Cancer Care centers Center of Excellence (CoE)1 Comprehensive Cancer center (21)2 Freestanding Diagnostic center (3)2 2,0631 28 17 Day Care Chemotherapy center (1) BEDS LINEAR P E T- C T A C C E L E R A TOR S S C A N N E
Slide 9: Contents
Contents Overview Financial Highlights Appendix www.hcgel.com
Slide 10: Financial Highlights: Q3-FY20
Financial Highlights: Q3-FY20 INR million except earnings per share Q3-FY20 Q3-FY19 Q3-FY20 • Q3’20 Revenue grew 11.7% y-o-y Growth Growth Period Ended Dec 31 As per AS 116 (y-o-y) w/o AS 116 (y-o-y) • HCG(1) centers: +11.9% Income from Operations 2,779 2,488 11.7% 2,779 11.7% • Milann(2) centers: +
Slide 11: Financial Highlights: YTD-FY20
Financial Highlights: YTD-FY20 INR million except earnings per share YTD-FY20 YTD-FY19 YTD-FY20 • YTD’20 Revenue grew 14.5% y-o-y Growth Growth Period Ended Dec 31 As per AS 116 (y-o-y) w/o AS 116 (y-o-y) • HCG(1) centers: +14.7% Income from Operations 8,253 7,208 14.5% 8,253 14.5% • Milann(2) cente
Slide 12: Revenue Mix: Q3-FY20
Revenue Mix: Q3-FY20 Revenue: HCG Centers: INR 2,779 Mn INR 2,602 Mn Gujarat 29% HCG (1) Karnataka (30%) 1 centers 35% 94% (37%)1 (93%) 1 (2) Fertility centers 6% North India Maharashtra (7%) 1 2% 14% (1%) 1 (14%) 1 Tamil Nadu A.P. East India (1) 22 comprehensive cancer centers, 3 multispecialty 4%
Slide 13: HCG Centers: Q3-FY20 Revenues
HCG Centers: Q3-FY20 Revenues • Strong growth continues at Growth Growth several existing and new centers Period Ended Dec 31 Q3-FY20 Q3-FY19 (y-o-y) YTD-FY20 YTD-FY19 (y-o-y) in Q3-FY20 Karnataka 913 860 6.1% 2,710 2,583 4.9% • Vizag: +37.5% y-o-y Gujarat 754 693 8.8% 2,314 1,934 19.6% • Borivali:
Slide 14: HCG Centers: Q3-FY20 Operating Metrics
HCG Centers: Q3-FY20 Operating Metrics No. of Centers Beds Avg. Occupancy Rate Q3-FY20: Q3-FY20: • ARPOB for existing centers at INR 33,918 Q3-FY20: 2,063 41.7% against INR 31,763 in Q3-FY19 25 • ALOS at 2.24 on account of trend towards day Q3-FY19: care procedures and changing patient profile Q3-FY
Slide 15: HCG Centers: Q3-FY20 Regional Highlights
HCG Centers: Q3-FY20 Regional Highlights ARPOB Revenue Operating Centers Beds AOR (INR/Day) (INR MN) EBITDA % Karnataka COE ARPOB of INR 63.3k with 29.8% operating EBITDA margin Q3-FY20 COE ROCE improved from 20.8% 7 615 43.9% 38.5K 913 25.5% to 29.6% Focus on margin and returns optimization +
Slide 16: Milann: Implementing Strategic Initiatives
Milann: Implementing Strategic Initiatives Existing centers(1) New centers(2) Chandigarh Delhi Ahmedabad Q3-FY20 Q3-FY19 Growth New Registrations 1,313 1,400 -6.2% IVF Cycles 550 504 9.1% Bangalore (5 centers) Revenue (INR Mn) 177 163 8.6% M S Ramaiah Indiranagar Whitefield center in Bangaluru ach
Slide 17: Capital Expenditure and Net Debt
Capital Expenditure and Net Debt Capital Expenditure Net Debt INR Million INR Million Q3-FY20 Q2-FY20 30-Dec-19 30-Sep-19 HCG Centres Net Debt Existing Centres 22 65 Bank Debt(1) 5,535 5,151 (2) Expansions 166 88 Vendor Finance 1,174 1,123 New Centres 133 285 Capital Leases 563 563 322 438 Other Deb
Slide 18: Project Updates
Project Updates 2 new HCG centers launched in FY2020 1 new Milann center launched in Q1 FY2019 Bed Project Cost Start Location Capacity (INR mn) Date Location Start Date Jaipur, Rajasthan 50 410 Q2-FY19 Delhi Q1-FY17 Bhavnagar, Gujarat NA 150 Q2-FY19 Chandigarh Q3-FY17 Nashik Phase II, 92 623 Q2-FY1
Slide 19: Contents
Contents Overview Financial Highlights Appendix www.hcgel.com
Slide 20: Investment Thesis
Investment Thesis Industry trends Largest provider of High quality care provided Strong management and backdrop cancer care in India with at a competitive price team with successful a proven track record track-record 20 © 2019, ALL RIGHTS RESERVED www.hcgel.com
Slide 21: Industry Trends and Backdrop
Industry Trends and Backdrop Cancer Incidences in India to Increase Incidence of Cancer Across Countries¹ 3.4 Cancer prevalence in India estimated to be 3.9mn in 2015 Estimated 1.6-2.2 Estimated 1.1mn new cancer cases reported in 2015 1.7 incidence of 1.1 0.9 cancer in 2015 (mns) Real incidenc
Slide 22: Industry Trends and Backdrop
Industry Trends and Backdrop Demand Supply Gap and Treatment Landscape Existing Demand Supply Gap in Diagnostics… …and Treatment Lack of adequate infrastructure and absence of mass A key requirement for successful radiation therapy is screening programs are key barriers to timely diagnosis avail
Slide 23: Largest Provider of Cancer Care in India
Largest Provider of Cancer Care in India A Proven Track Record¹ HCG’s market leading position, successful track record and strong reputation in India provides a significant advantage over its competitors Largest Cancer Care Provider… …With a Strong Track Record Largest provider of cancer care in I
Slide 24: High Quality Care Provided at Competitive Price
High Quality Care Provided at Competitive Price Ability to provide high quality care driven by a multidisciplinary and technology focused approach Approach to Providing High Quality Care… …Results in Successful Clinical Multidisciplinary approach to cancer care - specialist physicians from Outcome
Slide 25: Coverage by Harvard
Coverage by Harvard Unique and Successful Comparable outcomes at Business Model fraction of cost Survival Rate Cost Govindarajan et. al. .Harvard Business Review, November 2012, “Delivering World Class Health Care Affordably, Innovative hospitals in India are pointing the way”G 25 © 2019, ALL RIGHTS
Slide 26: Thank You
THANK YOU For updates and specific queries, please visit www.hcgel.com or feel free to contact investors@hcgoncology.com © 2019 HealthCare Global Enterprises Limited., All Rights Reserved. HCG Logo is trademark of HealthCare Global Enterprises Limited In addition to Company data, data from market re
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