Metropolis Healthcare Ltd. · NSE:METROPOLIS
Metropolis Healthcare — FY2019 Earnings Presentation
30 slides from Metropolis Healthcare's earnings presentation, May 13, 2019
Slide 1: Investors & Analyst Presentation
Investors & Analyst Presentation May 13, 2019
Slide 2: Table of Contents
Table of Contents Integrity is in our veins Empathy is in our blood About us ................................................................2 Accuracy is in our DNA Our Journey............................................................3 Metropolis Business Strategy……………......….4 Key performance hi
Slide 3: Metropolis – one of the leading company in the Indian diagnostic sector
Metropolis – one of the leading company in the Indian diagnostic sector Who we are Way forward 1. Leadership in Indian diagnostics Continued organic 17 million tests / 8.9 million patient visits (15.5% 2nd largest diagnostics player in India(1) patient volume growth) (2) growth Leadership position
Slide 4: Our Journey
Our Journey New professional Expansion to management team Successful IPO Commenced developing African Rollout of Metropolis Capital infusion by with 5.8X times Clinical Research countries retail strategy ICICI Ventures Oversubscription Services and listing 1992 2006 2013 2016 1981 2003 2010 2015 Cur
Slide 5: Metropolis' business strategy
Metropolis’ business strategy One page strategy Growth through New Organic Acquisitions avenues of growth & growth Integration Strategy Laboratory on D-APSC Lease Model conversion B2C Strategy B2B / B2C Strategy B2B / B2C B2C Strategy Strategy Focus cities Seeding and PPP (Public Patient other citie
Slide 6: Large markets in which Metropolis is growing extremely fast
Large markets in which Metropolis is growing extremely fast Metropolis derives 58.61%(1) revenues from 5 focus cities which are amongst the top 8 highest GDP cities in India GDP(2) at PPP Metropolis Top cities (US$ billion) presence Mumbai 310.0 ‘Focus Cities‘ Bengaluru 110.0 for Metropolis – Si
Slide 7: Metropolis' focused organic city based growth strategy
Metropolis’ focused organic city based growth strategy Consolidating the position in leadership markets and seed growth in potential markets Network of 210 cities Criteria % of FY19 revenue(1) Strategy Well diversified High potential market Focus business providing Metropolis has significant pre
Slide 8: Hub & Spoke model for geographical coverage
Hub & Spoke model for geographical coverage Diversified network across various formats and business models Network model & physical sample flow Flow of samples Global Reference Lab (GRL) India Network Home collection Conducts all ~4,000 tests on the menu in- house GRL for Metropolis is located i
Slide 9: Key Highlights
METROP@LIS SAN a
Slide 10: Key performance highlights of FY19
Key performance highlights of FY19 4 B2C ratio @ 52% in FY19 as compared to 48% in FY18 in Focus 3 cities 5 40% growth in centres EBITDA(1) margin of expansion from 1756 to 2455 27.3% 1 Revenue: 7601 million (18.1% growth) 2 7 Increase in Average 15.5% growth in realisation number of patients High R
Slide 11: Rapid revenue growth by 18.1%, better than industry benchmark
1. Rapid revenue growth by 18.1%, better than industry benchmark Revenue Revenue growth for B2C INR in million 18.1% 20.2% 18.1% 27.2% 14.6% 17.8% 7,601 3286 6,435 2733 4,755 5,447 2149 1824 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Domestic revenue from operations increased by 18.7% Bolstering growth
Slide 12: Robust operating and financial performance
2. Robust operating and financial performance 15.5% growth in # of patients with increase in revenue per patient and revenue per test. # of Patient Visits and # of Tests in million Revenue per Patient and Revenue per Test in INR 17.0 836 854 16.0 778 14.3 692 13.4 11.2% 5.5% 15.5% 7.0% 10.0% 1.0% Gr
Slide 13: Aggressive network expansion creating long runway for growth
3. Aggressive network expansion creating long runway for growth 140 NETWORK STRATEGY HIGHLIGHTS 119 120 106 Fast pace of execution 100 89 95 5.5x patients network growth Laboratory 80 during FY2016-19 Network 60 40 1938 patients touch points added during FY2016-18 20 0 Young Individual patients
Slide 14: Increasing retail contribution to total revenue
4. Increasing retail contribution to total revenue Primary strategy of the company is to increase the retail share in focus cities to 65% 48% 52% 43% 45% FY16 FY17 FY18 FY19 Chart shows B2C contribution over the years in focus cities; Mumbai, Chennai, Bangalore, Surat and Pune B2C contribution in th
Slide 15: Robust EBIDTA growth of 16.4%
INR in million 5. Robust EBIDTA growth of 16.4%. 27.7% 27.3% EBIDTA margin 2,073 1,781 FY18 FY19 EBIDTA excludes • Non recurring share based and other expenses • Provision for IL&FS Investment • CSR Cost Factors driving operating EBIDTA margin: Increase in margin: • Sri Lanka operation suffered 15 m
Slide 16: Robust PAT growth of 16.2%
INR in million 6. Robust PAT growth of 16.2%. Bridge between PAT and Operational PAT PAT 1,400 1,308 1,236 1,200 1,000 800 600 Non 400 recurring Provision for 200 share based IL&FS Loss from payment CSR new JV Investment - Operational -36 -14 -7 -14 -200 PAT PAT excludes • CSR and Non recurring Shar
Slide 17: Highlights of Q4 FY19
Highlights of Q4 FY19 4 3 EBITDA (1) margin @ PAT(2): 29.4% Growth 19.1% INR 372 million 1 (20.6% growth) Revenue: 2008 million (21.1% growth) 2 Increase in Average 5 realisation Launch of new From INR 394/test in Wellness initiative FY18 to 427/test in FY19 TruHealth From INR 812/patient in FY18 to
Slide 18: High revenue growth with increase in contribution to total year
I. High revenue growth with increase in contribution to total year INR in million Revenue 50% 26.4% Quarter 45% 23.1% 25.1% 25.4% FY19 Contribution FY18 Contribution 40% Q1 1,758 23.1% 1,487 23.1% 35% 30% Q2 1,931 25.4% 1,687 26.2% 25% 21% 19% Q3 1,904 25.1% 1,604 24.9% 20% 18% 14% Q4 2,008 26.4% 1,
Slide 19: Robust revenue and profit growth in Q4
II. Robust revenue and profit growth in Q4 INR in million Particulars Q4 FY19 Q4 FY18 Growth Revenue from Operations 2,008 1,658 21.1% EBIDTA before CSR and one time share based and other expenses 590 495 19.1% Margin 29.37% 29.86% Less: CSR 5 3 Provision for IL&FS Investment 14 One time Share based
Slide 20: Information Technology
METROP@LIS Information Technology Ss
Slide 21: Big investments in information technology to drive future efficiency
Big investments in information technology to drive future efficiency and connect with consumer Improving Business revenue Cost saving and Improve Operational • Improve Customer generation capabilities optimisation Efficiency Experience • IBM Watson Campaign • Launching a pricing engine • Zero data l
Slide 22: Quality Assurance
METROP@LIS Quality Assurance Ss
Slide 23: Exceptional performance in analytical quality
Exceptional performance in analytical quality GLOBAL LAB ACCREDITATIONS GRL CAP PROFICIENCY GRL CAPTESTING SCORE Performance 98.3% 98.5% 98.1% 98.5% 98.2% 98.5% Mumbai Lab is CAP accredited since 2005 *(College of American Pathologists, global gold standard in laboratory accreditations) NABL Accredi
Slide 24: Assured quality standard in non-analytical areas
Assured quality standard in non-analytical areas PSCs, Home Service and Call Centre Measures MHL EQAS PROGRAM Only private laboratory to have in-house As 70% of errors are known to occur in pre-analytical phase, special efforts are put to minimize it developed and NABL accredited EQAS program
Slide 25: Talent Management
METROP@LIS Talent Management Ss
Slide 26: Talent Management
Talent Management Putting People First HR HIGHLIGHTS New HR Management System for automated processes improving productivity and ensuring availability of employee data on demand Full Fledged Learning Module System with over 100 modules that cover the entire gamut of operations & Quality Assurance St
Slide 27: Financial Performance
METROP@LIS Financial Performance Ss
Slide 28: Financial Performance – FY19 and Q4 FY19
Financial Performance – FY19 and Q4 FY19 INR in million Particulars Q4 FY19 Q4 FY18 Growth FY19 FY18 Growth Revenue from Operations 2,008 1,658 21.1% 7,601 6,435 18.1% EBIDTA before CSR and one time share based and other expenses 590 495 19.1% 2,073 1,781 16.4% Margin 29.37% 29.86% 27.3% 27.7% Less:
Slide 29: Notable Recent Awards & Accolades
Notable Recent Awards & Accolades The Global Reference Laboratory of Metropolis holds Our Company was awarded for “Best in Health and Fitness” in accreditation from the College of American Pathologists the Digital Campaign Awards by LH Insights 2018. (CAP) since 2005 which is the gold standard in ac
Slide 30: Thank you
METROP@LIS Thank you METROP@LIS|