Narayana Hrudayalaya Ltd. · NSE:NH
Narayana Hrudayalaya — FY2016 Earnings Presentation
32 slides from Narayana Hrudayalaya's earnings presentation, May 2016
Slide 1: Investor Presentation May 2016
Investor Presentation May 2016
Slide 2: Important Disclosure
Important Disclosure No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its da
Slide 3: Who are NH Today – A Pan-India Multispecialty Hospital Group
Who are NH Today – A Pan-India Multispecialty Hospital Group 2000 Founded by Dr Devi Prasad Shetty Total Revenue(4) Operational Beds(5) ₹ million Number of beds 54(1) Healthcare facilities (As of 1 May 2016) st 16,177 5,347 3,815 8,507 6,651 Capacity Beds (As of 1 May 2016) st 2.10 (2) Patients in F
Slide 4: NH's Business at a Glance
NH’s Business at a Glance Operational Beds Split Operating Revenue Mix (FY16) As on May 1,2016 Regional Distribution Total Operational Bed Count of 5,347 7 10 5 1 2,026 1,893 871 6% 93% 70 1% Karnataka East West and North 4,144 Central (4,144 beds) (1) Hospitals in India Heart Centres 716 386 101 Ot
Slide 5: NH's Flagship Hospitals
NH’s Flagship Hospitals NICS (NH Health City), MSMC (NH Health City), Bangalore RTIICS, Bangalore Kolkata Commercially operational since July 2009, Commercially operational since July 2000, 628 operational beds (1) Commercially operational since January 706 operational beds (1) Multispecialt
Slide 6: Indian Healthcare Services Industry
Indian Healthcare Services Industry
Slide 7: Indian Healthcare Services – A Large, Underpenetrated Market Opportunity
Indian Healthcare Services – A Large, Underpenetrated Market Opportunity Population expected to grow from Healthcare Delivery Market in Hospital Bed Density (2012)(3) 1.2 billion(1) to 1.4 billion(1) by 2026 India(1) INR trillion Hospital beds per 10,000 people 3.4 billion(1) treatments annually
Slide 8: Demand Geared Towards Affordable Treatment of Non-Communicable Diseases
Demand Geared Towards Affordable Treatment of Non-Communicable Diseases Affordability of Quality Healthcare is Critical, Given the Growing Prevalence of Non-communicable Diseases, Income Distribution in India Including Cardiovascular Diseases Income Demographics in India (2013-2014E)(1) Causes of De
Slide 9: The NH Case
The NH Case whe INH Narayana Health
Slide 10: What differentiates NH?
What differentiates NH? Unique business Professional 1 Management Team 3 model aligned with industry dynamics Proven execution track-record and distinctive operating culture Affordable healthcare at highest clinical standards Recognised brand for High growth & multiple 2 4 clinical excellence layers
Slide 11: Unique Business Model Aligned With Industry Dynamics
Unique Business Model Aligned With Industry Dynamics Pan-India Network of Healthcare Facilities 1a Delivering Quality “Asset-right” Capital Healthcare at 1d 1b Deployment Model Affordable Prices 1c Pre-eminence in Cardiac and Renal Sciences 11
Slide 12: Pan-India Network of Healthcare Facilities
1a Pan-India Network of Healthcare Facilities Established presence and strong brand recognition Network of Hospitals in India As of 1st May, 2016 in two geographical clusters in the southern state of Karnataka and eastern India Kakriyal, Jammu Emerging presence in western and central India, Jaipur L
Slide 13: Cluster Model Creates Regional Healthcare Ecosystems
1a Cluster Model Creates Regional Healthcare “Ecosystems” Significant growth potential from under-penetrated and fast growing cities and towns FY16 key performance statistics per regional cluster: % of Hospital Regional Cluster Hospitals(1) % of Hospital Revenue(1) ARPOB (in ₹ million)(2) Operat
Slide 14: Highly Efficient Model of Capital Deployment
1b Highly Efficient Model of Capital Deployment As on May 1,2016 Five models used to expand presence while NH Model for 23 Multi and Superspecialty Facilities maximising the efficiency of capital deployment No. of No. of Model Operational Description Facilities Average effective capital cost per bed
Slide 15: Multispecialty Hospital with Strong Presence in Cardiac and Renal Sciences
1c Multispecialty Hospital with Strong Presence in Cardiac and Renal Sciences Well-positioned to benefit from growth trends in Strong Presence in Cardiac and Renal Sciences tertiary care in India Number of Procedures Performed at NH (FY16) Specialised in non-communicable diseases 199,509 Strong
Slide 16: NH's Competitive Advantages Facilitate the Delivery of Affordable Care
1d NH’s Competitive Advantages Facilitate the Delivery of Affordable Care Economies of scale and competitive prices Payee Profile by Revenue (FY16) (1) from suppliers and service providers through centralised purchasing 5% Cost efficiencies through supply chain 18% management, sharing of resources a
Slide 17: Reputable Brand Associated With Clinical Excellence
2 Reputable Brand Associated With Clinical Excellence 3 hospitals with international accreditation from Joint Select Awards Received Commission International (JCI) Dr. Devi 8 hospitals with domestic accreditation from the Prasad Shetty National Accreditation Board for Hospitals and Healthcare Provid
Slide 18: Capable Team In Place To Execute the Vision
3 Capable Team In Place To Execute the Vision Deep Management Structure Professionals with rich and diverse experience Kesavan Venugopalan Dr. Emmanuel Rupert Track-record of driving organic Chief Financial Officer Chief of Medical Services and acquisition-led growth 18 years experience 25 yea
Slide 19: Multiple Layers of Growth to Drive Sustained Expansion
4 Multiple Layers of Growth to Drive Sustained Expansion Capitalise across dominant regions & accelerate growth in newer geographies 4a Build niche around Leverage upon targeted operational 4d 4b focused offerings and foster clinical excellence initiatives 4c Optimize capital deployment through flex
Slide 20: Capitalise across dominant regions & accelerate growth in newer geographies
4a Capitalise across dominant regions & accelerate growth in newer geographies Karnataka 7 Hospitals(1) Domestic 800k Patients(2) Leverage strong brand reputation and operational excellence to enhance presence across Karnataka and East India 2,026 Operational Beds(1) Eastern India Strengthen the
Slide 21: Build niche around focused offerings and foster clinical excellence
Build niche around focused offerings and foster 4b clinical excellence Build niche around focussed offerings Emphasize on sub-specialities • Cardiac Sciences – TAVI, MitraClip, Electrophysiology, Paediatric focus • Neuro Sciences – Parkinson’s, DBS, Epilepsy treatment • Gastro Enterology – Advance
Slide 22: Optimize capital deployment through flexible engagement models
Optimize capital deployment through flexible 4c engagement models Continue pursuing “Asset-Right” model Engagement Framework Prefer structures limiting our capital investments to primarily medical equipment Continue to be partner-of-choice for various private and public bodies Maintain a balan
Slide 23: Leverage upon targeted operational initiatives
Leverage upon targeted operational 4d initiatives Patient Care Institutionalize “Care Companion” program, a unique and effective patient attendant training program Nurture a culture of organized learning with specific training for customer-facing functions to ensure seamless service delivery Tec
Slide 24: Attractive Mix of Profitable Mature Hospitals and Scalable Newer Hospitals
4 Attractive Mix of Profitable Mature Hospitals and Scalable Newer Hospitals Over time, NH expects the financial metrics of new hospitals to converge with those of the more mature hospitals Key performance statistics as on 31st March 2016 for NH’s 23 multispecialty and superspecialty facilities:
Slide 25: Strong Execution Track Record and Tangible Expansion Plans
4 Strong Execution Track Record and Tangible Expansion Plans Operational Bed Build-up Number of Beds (4) 973(5) Acquired(3) Organic Acquired(2) Capacity beds Organic in pipeline Organic through upcoming facilities in next 48 FY13 FY14(1) FY15 months 1-Apr-12 Addition Addition Addition 1-May-16 Upcom
Slide 26: Financial Overview
Financial Overview whe INH Narayana Health
Slide 27: Strong Track-record of Topline Growth
Strong Track-record of Topline Growth Narayana has generated strong topline Total Revenue(1) growth at a CAGR of 27.5% from FY11- (INR million) FY16 16,177 Efficient roll-out of greenfield projects and 13,716 11,158 the execution and integration of 6,607 8,507 acquisitions have been primary driv
Slide 28: Growth Driven by Capacity Expansion and Improving Operational Efficiency
Growth Driven by Capacity Expansion and Improving Operational Efficiency # of Beds & Patient Volumes Improving Operational Efficiency(1) FY13 – May 1,2016 CAGR 2013-16 Reduced by ~1 day Operational Volume Volume ALOS 4.5 4.3 1,532 20% 19% 5.3 4.9 Beds Outpatients(3) Inpatients (Days) Added(3) ₹7 ₹ 6
Slide 29: Operating Leverage Underpins Scope for Margin Expansion
Operating Leverage Underpins Scope for Margin Expansion EBITDA and EBITDA Margin(1) Cost Structure(3) 23.8%(2) EBITDAR margin for % of Total Operating Revenue hospitals with maturity >5 years Rental / Revenue Share 11.6% 89% 90% 91% 89% 10.6% 10.3% 9.5% 2.5% 2.8% 2.9% 3.0% 23% 26% 26% 24% 38% 39% 40
Slide 30: Financial Snapshot
Financial Snapshot Profit and Loss Statement Balance Sheet Statement Particulars(INR mn) FY13 FY14 FY15 FY16 Particulars(INR mn) FY13 FY14 FY15 FY16 Total Shareholders' Equity 5,560 5,852 7,684 8,868 Total Revenue 8,507 11,158 13,716 16,177 50 28 7 3 Minority Interest Purchase of medical consumables
Slide 31: Ownership Structure
Ownership Structure Shareholding as on 31st March 2016 Total Number of Shares FIIs/DIIs/Mutual Funds and Retail 204,360,804 ESOP Trust 1.0% 12.0% Mutual Funds- ~5.5% FIIs- ~3.3% FPIs- ~1.1% Others-~2.1% Others 2.3% PE Investors (2) 19.8% Promoter Group (1) 64.9% (1) Includes 2.8% held by NHAPL (Nara
Slide 32: Thank You
THANK YOU www.narayanahealth.org