Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Daiwa Investment Conference Hong Kong 2024
45 slides from Max Healthcare Institute's conference presentation, Nov 11, 2024
Slide 1: Cover letter to stock exchanges for investor conference
November 11, 2024 Listing Department, Listing Department, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai – 400 051 Mumbai – 400 001 Symbol: MAXHEALTH Scrip Code: 543220 Sub.: Pr
Slide 2: Investor Presentation
Investor Presentation November 11, 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “presentation”) contain selected information about the activities of Max Healthcare Institute Limited’s (“Max Healthcare”/“MHIL”/“MHC”/”Company”) as at the date of the presentation. None of MHIL, its directors, promoter, or affiliates, no
Slide 4: Content
Content Company overview 04 Key growth drivers 14 Financial highlights 24 Appendix 32 3
Slide 5: Company overview
By MAX Healthcare Company overview
Slide 6: Max Healthcare: India's second largest hospital chain
Max Healthcare: India’s second largest* hospital chain in terms of hospital revenue, EBITDA and market capitalisation Current capacity ~5,000 beds 22 78% ~78% NCR Facilities Beds in metros H1 FY25 Occupancy# 402 Shalimar Bagh Eqova 516 410 387 BLK Patparganj Vaishali 23% 44% ~29% Revenue CAGR^ EBITD
Slide 7: Vision: To be the most well-regarded healthcare provider in India
Vision: To be the most well-regarded healthcare provider in India To be the most well regarded healthcare provider in India committed to the highest standards of clinical excellence and patient care supported by latest technology and cutting edge research Quaternary care facilities World class infra
Slide 8: Journey so far
Journey so far • Radiant-Max Healthcare Dr. B L Kapur Memorial Dr. Balabhai Nanavati merger, listing on NSE & BSE Executed O&M Agreement Hospital, Rajendra Hospital, Mumbai(1) w/ Muthoot Hospitals Pvt. • Discontinuation of Max Multi Place(1) Ltd. in Dwarka, Delhi for Speciality Centre, Pitampura 300
Slide 9: Clinically comprehensive hospital chain with strong focus on research and academics
Clinically comprehensive hospital chain with strong focus on research and academics High end Complex procedures performed quaternary care facilities Robotic Cardiac Neuro Orthopedic Oncology Transplants(1) surgeries procedures(2) surgeries(3) surgeries(4) surgeries(5) Est. Annual* Count ~1,250 ~5,00
Slide 10: Dominant presence in the most attractive markets (1/2)
Dominant presence in the most attractive markets (1/2) Low bed density, higher per capita income, higher ARPOB and rising insurance penetration make Delhi and Mumbai attractive avenues for growth High demand-supply gap in Delhi NCR & Mumbai… …coupled with rising insurance penetration Total beds per
Slide 11: Dominant presence in the most attractive markets (2/2)
Dominant presence in the most attractive markets (2/2) Being metro-centric also positions Max Healthcare well to capitalise on medical tourism India’s foreign medical tourism industry has 18 company & partner-owned Patient Assistance Company-owned PACs been growing Centres (PACs) across 16 countries
Slide 12: Strategy going forward
Strategy going forward Build on Optimise Existing Clinical Expertise Infrastructure Attract best-in-class talent Payor mix, Capacity to focus on industry Utilisation, ALOS and leading patient outcomes Procedure Mix Focus on Capital Expand Bed Light Adjacencies Capacity Max Lab and Brownfields and Ma
Slide 13: Best-in-class performance parameters
Best-in-class performance parameters ARPOB(1) Occupancy (₹/OBD) (‘000) (%) 76 77 76% 75% 77% 67 70% 67% 65% 70% 64 65 64% 65% 59 62 57 59 61 59% 62% 59% 52 55 Operating parameters Max Healthcare Medanta Apollo Hospitals Fortis Healthcare Max Healthcare Medanta Apollo Hospitals Fortis Healthcare Pre-
Slide 14: Distinguished BoD and dynamic management team
Distinguished BoD and dynamic management team Distinguished Board of Directors Mr. Abhay Soi Ms. Amrita Gangotra Mr. Pranav C. Mehta Mr. Anil Bhatnagar Chairman and Managing Technology leader & former Chief Medical Officer, HCA Senior lawyer & arbitrator Director member of Exec. Mgmt at Healthcare (
Slide 15: Key growth drivers
By MAX Healthcare Key growth drivers
Slide 16: Strong financial profile to support future growth
Multiple avenues for future growth • Focus on tower specialities & case mix Optimising Existing 1 2 Infrastructure • Increase utilization & improve process efficiencies Strong cash generation from • Optimize payor mix operations ₹ 722 Cr in H1 FY25 3.1 Brownfield • ~2,700 beds addition via brownfiel
Slide 17: Valuable land bank to enable addition of 6,000+ beds
3 Valuable land bank to enable addition of 6,000+ beds, with ~3,500 beds coming in next 4 years Indicative timelines for completion of expansion projects^ Brownfield Greenfield Beds added in last 12m (inorganic + greenfield) Nanavati Hospital* Lucknow, Gomti Nagar 11,000+ Sec. 56 Gurugram 450 Saket
Slide 18: Ongoing expansion projects
3 Ongoing expansion projects Nanavati-Max – 268 beds in Phase I Max Smart (Saket Complex) – 375 beds Max Vikrant (Saket Complex) – 550 beds Max Smart Vikrant Saket (East & West) • Total BUA: ~7.5 lakh sft. • Total BUA: ~5.0 lakh sft. • Total BUA: ~7.1 lakh sft. • Building configuration: 3 Basements
Slide 19: Snapshot of newly operationalized + acquired hospitals (1/2)
3 Snapshot of newly operationalized + acquired hospitals (1/2) Max Dwarka Max Lucknow (erstwhile Sahara Hospital) Max Nagpur (erstwhile Alexis Hospital) Asset-light (O&M) Acquisition (BTA) Acquisition (SPA) 303-bed, 5-star GRIHA compliant hospital, ~550 beds (G+17 floors, OC for G+12 received), 200
Slide 20: Snapshot of newly operationalized + acquired hospitals (2/2)
3 Snapshot of newly operationalized + acquired hospitals (2/2) • Jaypee Healthcare Limited (JHL) primarily operates a 500-bed hospital in Noida, commissioned in 2013 and situated on 18 acres of land with built up area of ~9 lakh sft. JHL also owns two smaller hospitals: a 200-bed facility in Chitta,
Slide 21: Strong track record of successful acquisitions
3 Strong track record of successful acquisitions Management team has done multiple successful acquisitions and integrations, including BLK, Nanavati and Max Healthcare, leading to significant turnaround in the operating and financial metrics 550 beds (Lucknow and Nagpur), acquired in Q4 FY24, have a
Slide 22: Max Lab – non-captive pathology SBU
4 Max Lab – non-captive pathology SBU Operational footprint Organized diagnostics players to grow faster than overall Diagnostic industry (as of Sept. 30, 2024) India Diagnostic market to see steady growth Indian Diagnostic Industry mix by type of providers (₹ Bn) 35-40% Multi-regional 475+ Standalo
Slide 23: Max@Home – one of the largest homecare providers in the country
4 Max@Home – amongst one of the largest homecare providers in the country Indian home healthcare is under-penetrated with only ~3.6% of total health spending on home Growth Drivers healthcare vis-à-vis ~8.3% in the US Home healthcare solutions ~40% Indian home healthcare market expected to grow …wit
Slide 24: Max MyHealth – proprietary digital platform
5 Max MyHealth – proprietary digital platform enabling best-in- class omnichannel healthcare experience ‘Max MyHealth’ offering new age experience for patients and doctors Monthly Active Users ('000s) 102.8 ~7.7 lakh ~8.5x growth Patient registrations till date 10.9 100,000+ Jan-23 Apr-23 May-23 Jan
Slide 25: Financial highlights
By MAX Healthcare Financial highlights
Slide 26: Notes to Network consolidated financials
Notes to Network consolidated financials 1. Max Healthcare Institute Limited (“MHIL”), its subsidiaries and deemed separate entities (i.e., silos for managed healthcare facilities) constitute MHIL Group under IND AS 110. MHIL Group also has long-term contracts with certain societies, who own and ope
Slide 27: Network P&L statement: Q2 FY25
Network P&L statement: Q2 FY25 Figs in ₹ Cr Q2 FY24 Q1 FY25 Q2 FY251 Amount % NR Amount % NR Amount % NR Gross revenue 1,827 2,028 2,228 Net revenue 1,732 100.0% 1,935 100.0% 2,125 100.0% Direct costs 667 38.5% 773 39.9% 843 39.7% Contribution 1,065 61.5% 1,162 60.1% 1,282 60.3% Indirect overheads2
Slide 28: Network P&L statement: H1 FY25
Network P&L statement: H1 FY25 Figs in ₹ Cr H1 FY24 H1 FY251 Amount % NR Amount % NR Gross revenue 3,546 4,256 Net revenue 3,361 100.0% 4,060 100.0% Direct costs 1,317 39.2% 1,616 39.8% Contribution 2,043 60.8% 2,444 60.2% Indirect Overheads2 1,110 33.0% 1,380 34.0% Operating EBITDA 933 27.8% 1,064
Slide 29: Memorandum consolidation of Network P&L: H1 FY25
Memorandum consolidation of Network P&L: H1 FY25 Figs in ₹ Cr MHIL & its Partner Healthcare Facilities ("PHF") Financials MHC Network subsidiaries & Eliminations (IGAAP Audited)* (Consolidated) Silos & (Certified by an Ind AS Balaji GM Modi Devki Devi IND AS Adjustments(2) ICA) Audited Society Socie
Slide 30: Network profitability: Annual trend
Network profitability: Annual trend Figs in ₹ Cr FY22 FY23 FY24 H1 FY25 Amount % NR Amount % NR Amount % NR Amount % NR 1 Gross revenue 5,509 6,236 7,215 4,256 Net revenue 5,218 100.0% 5,904 100.0% 6,849 100.0% 4,060 100.0% Direct costs 2,103 40.3% 2,304 39.0% 2,675 39.1% 1,616 39.8% Contribution 3,
Slide 31: Network balance sheet
Network balance sheet1 (Includes Managed and Partner Healthcare Facilities) Figs in ₹ Cr Sep 2023 Particulars Mar 2024 Sep 2024 8,623 Shareholders' Equity (incl. corpus) 9,295 9,816 606 Gross Debt 1,177 1,211 463 Deferred / Contingent Consideration Payable2 461 484 84 Put Option Liability3 87 90 147
Slide 32: Thank you
By MAX Healthcare Thank you
Slide 33: Appendix
Appendix 1. ESG & CSR Updates 2. Payor & Speciality profiles, Network structure, IT & HR 32
Slide 34: Appendix 1: ESG highlights, CSR initiatives
Appendix 1 ESG highlights CSR initiatives 33
Slide 35: ESG highlights
ESG highlights Environment ISO 14001 certification received for twelve 39% water recycled out of total water 0.9 KL per bed fresh water consumption in hospitals consumption in FY24 FY24, down from 1 kilolitres per bed in FY23 8% share of renewable energy in total energy >32% of our waste being dispo
Slide 36: CSR initiatives
CSR initiatives Initiatives undertaken on Education Max Medical Scholarship Orientation Inauguration of the Max Skill Training for Construction of Pond in Meerut Programme Sustainable Livelihood at Tihar Jail (Rajpura Village) Focus areas for CSR: Education and Water Sustainability Education Water S
Slide 37: Appendix 2
Appendix 2 Payor & Speciality profiles Network structure IT & Digital infrastructure HR initiatives 36
Slide 38: Payor & Speciality profiles
Payor & Speciality profiles H1 FY25 Payor Mix (revenue share) H1 FY25 Speciality Mix Others Institutional Gastroenterology +21% Y-o-Y OBGY and pediatrics 4.2% Oncology* Self Pay 5.2% 18.2% +25% Y-o-Y Liver & biliary 5.6% 25.7% sciences International 3.2% 35.1% Pulmonology +14% Y-o-Y 3.2% Revenue fro
Slide 39: Network holding structure
Network holding structure (As of October 31, 2024) Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Max Panchsheel Max Healthcare Medical Service Agreement Immigration centre (Lajpat Nagar) Institute Limited Max Saket (West) (MHIL) Devki Devi Society SBUs (MIME, Max@Hom
Slide 40: Our people help us – to serve, to excel
Our people help us – to serve, to excel COMPASSION EXCELLENCE EFFICIENCY CONSISTENCY ▪ I Commit to Care - foundation of ▪ ~1 Mn hours of upskilling ▪ Differentiated reward strategy for ▪ Certified as Great Place To Work all that we do, committed to care programme through capability medical & non-med
Slide 41: Our digital backbone
Our digital backbone Modernization of IT infra Digitization & AI ▪ Implementation of SDWAN for better ▪ Multiple AI projects running in radiology user experience and cost optimization (Qure AI, Predible’s LungIQ, Zebra’s, etc.) ▪ Enhancement of BCP for improved + few pilot projects for disease RPO/R
Slide 42: Efficient in-house digital platforms
Efficient in-house digital platforms Home-grown command centres offer real-time insights into both outpatient and inpatient journeys Patient Reported Outcomes Measurement (PROM) Digital app for doctors to manage outpatients 41
Slide 43: List of Network healthcare facilities
List of Network healthcare facilities Name Location Description Max Super Speciality Hospital, Saket (West Block) Delhi Hospital Max Super Speciality Hospital, Saket (East Block) Delhi Hospital Max Smart Super Speciality Hospital, Saket Delhi Hospital Max Super Speciality Hospital, Dwarka Delhi Hosp
Slide 44: Definitions
Definitions Term Description ALOS Average Length of Stay: discharged patients stay in the hospital, basis admission and discharge time Average Revenue per Occupied Bed; Gross revenue divided by the occupied bed days; excludes revenue from Covid-19 ARPOB vaccination & related antibody tests and Max L
Slide 45: About us
About us Max Healthcare Institute Limited (Max Healthcare) is one of India’s largest For further information, please visit: healthcare organizations. It is committed to the highest standards of clinical www.maxhealthcare.in excellence and patient care, supported by latest technology and cutting-edge
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