Aster Dm Healthcare Ltd. · NSE:ASTERDM
Aster Dm Healthcare — Non-Deal Roadshow (December 2023)
47 slides from Aster Dm Healthcare's roadshow presentation, Dec 4, 2023
Slide 1: Cover letter to stock exchanges
December 04, 2023 The Secretary The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd 1st Floor, Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G Dalal Street, Mumbai 400001 Bandra Kurla Complex Scrip Code: 540975 Bandra (East), Mumbai 40005
Slide 2: Roadshow Presentation: Creating two distinct geographically focused entities
Roadshow Presentation Creating two distinct geographically focused entities December 2023
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Aster DM Healthcare Limited (the "Company"), content of which was compiled from sources believed to be reliable for informational purposes only and are based on information regarding the Company and the economic, regulatory, market and other conditio
Slide 4: Aster DM Healthcare is being segregated to create two separate entities
Aster DM Healthcare is being segregated to create two separate entities, focused on India and GCC respectively Post-segregation, Aster DM Healthcare Limited will The GCC Business will be separated from Aster DM be a focused listed entity holding India business Healthcare Limited to create Aster GCC1
Slide 5: Transaction Overview
Transaction Overview § The board of directors of Aster DM Healthcare (“Company” or “Aster”) at their meeting today approved the 100% sale of its GCC business (“GCC Business”) § GCC Business will be acquired by Alpha GCC Holdings Limited, a company incorporated in Dubai International Financial Centre
Slide 6: Pre-Segregation Structure
Pre-Segregation Structure Current Structure Promoters Public 41.88% 58.12% Aster DM Healthcare Limited India Business GCC Business Labs & Hospitals Clinics1 Pharmacies1 Hospitals Clinics Pharmacies 2 PECs Andhra KSA Oman Qatar Bahrain Jordan Kerala Karnataka Maharashtra Telangana UAE Pradesh Note: (
Slide 7: Post-Segregation Structure
Post-Segregation Structure INDIA LISTED ENTITY GCC ENTITY Promoters Public Promoters Fajr Consortium 41.88% 58.12% 35% 65% Aster DM Healthcare Aster GCC3 Limited Hospitals Clinics Pharmacies1 Labs & PECs Hospitals Clinics2 Pharmacies2 Andhra Kerala Karnataka Maharashtra Telangana UAE KSA Oman Qatar
Slide 8: Strategic rationale behind segregation
Strategic rationale behind segregation Creating pure-play India Segregation enables better operating entity that allows for understanding of India business 1 independent operations and 2 by investor community.. board / governance structure Clear Capital Allocation Strategy for ..allowing potential v
Slide 9: Creating pure-play India operating entity
Creating pure-play India operating entity that allows for independent operations and board / governance structure Key Highlights of the India Business 1 2,983 453 0% AGR 2 2,384 % 353 ue C R 35 Reven 1,631 1,654 DA C AG 1,314 EBIT 1,178 183 144 121 2 99 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 F
Slide 10: Segregation enables better understanding of India business by investors
Segregation enables better understanding of India business by investor community… Public market investors / analyst community should better appreciate the India operations 1 Shareholders get exposure to pure play India business and an opportunity to witness the India growth story 2 The listed entity
Slide 11: …allowing for potential value unlocking
…allowing for potential value unlocking Better performance across key metrics post-segregation Financial Metrics Pre-segregation Post-segregation 1 (FY23) (GCC + India) (India) Revenue YoY Growth 16% 25% ü 2 EBITDA Margins 13% 15% ü EBITDA YoY Growth 6% 28% ü PAT YoY Growth -19% 146% ü 3 ROCE1 8.6%
Slide 12: Our plan towards utilization of transaction proceeds
Our plan towards utilization of transaction proceeds As internal accruals are sufficient to fund our organic growth plans at Aster India, most of the transaction proceeds will be distributed as dividend to our shareholders - allowing significant returns for them – and the balance will allow us to pu
Slide 13: Aster India
Aster India 12
Slide 14: India's vast population and increasing healthcare expenditure
India’s vast population and increasing healthcare expenditure provides significant headroom for growth …drive consistently fast growth for healthcare One of the lowest hospital bed densities in the …coupled with very little spend on healthcare as % delivery in India, expected to be worth $100bn+ by
Slide 15: A leading healthcare provider in South India
A leading healthcare provider in South India Current Presence 15 cities and 19* 4,855 5 states Hospitals capacity beds Operational metrics 67% 3.4 days INR 39,000+ Occupancy ALOS ARPOB FY23 Financial metrics Revenue EBITDA CAPEX INR 2,983 cr Margin: 15% INR 282 cr 20% 35% ~INR 1,000 cr 5 Year CAGR 5
Slide 16: From Clinic to a healthcare Powerhouse
From Clinic to a healthcare Powerhouse: A Transformational Journey to a Thriving Hospital Network... Kerala Cluster Andhra Pradesh & Telangana 2023 Corporate Segregation 2022 O&M Asset Light Model introduced 2021 Large Expansion of Facilities Aster Wholesale Pharmacy CB – Capacity Beds OB – Operatio
Slide 17: …created a dominant positioning in South India region
…created a dominant positioning in South India region Aster predominantly operates in the South; recent 2nd largest network in South India with significant capacity Revenue Growth (5-year CAGR) inroads in Maharashtra beds in southern states 1 Compared with listed peers in India (FY18-23) 2 5255 4624
Slide 18: Consciously built a de-risked business model
Consciously built a de-risked business model with healthy presence across multiple specialties… Geographical Revenue Mix Specialty-wise Revenue Mix Andhra & Telangana Women's Health 12% 6% Cardiac Sciences 14% Neuro Sciences 12% Karnataka & Multi Speciality Maharashtra 19% 28% Kerala 60% Payor Reven
Slide 19: Sustained improvement in India Business performance
…..resulting in sustained improvement in our India Business performance over the past few years No. of Capacity Beds ARPOB (in 000s) 4,855 39.0 3,757 3,905 33.5 3,693 30.1 3,460 27.7 3,007 26.1 23.7 FY18 FY19 FY20 FY21 FY22 Current FY18 FY19 FY20 FY21 FY22 Current Revenues (INR Crs) EBITDA (INR Cr)
Slide 20: Robust performance across key metrics over five years
…delivering robust performance across all key metrics over the last five years FY18 FY23 Revenue (5-year CAGR of 20%) INR 1,178 Crores INR 2,983 Crores ü Expanding EBITDA Margin1 (5-year CAGR of 35%) 10% 18% ü Improving ROCE1 1% 20.1% ü 19 hospitals, 13 Clinics 10 hospitals Growing Facility Footprin
Slide 21: FY23 performance of core hospital business and new businesses
For FY23, Aster India has delivered strong performance in its core hospital business while rapidly growing the other new businesses % of Revenue Revenue EBITDA INR 2,851 Cr INR 514 Cr Hospitals and Clinics 20% 18% 93% Core established business 19 hospitals(1) 13 clinics 4,855 capacity beds YoY Reven
Slide 22: Core Hospitals business shows strong improvement across operational parameters
The core Hospitals business has shown strong and consistent improvement across all operational parameters… Track record of consistent facility additions… …and increase in capacity beds… …leading to growing patient volumes… No. of Hospitals No. of Capacity Beds Patient Volumes (In Mn) 4,855 2.9 3,693
Slide 23: Robust financial performance trajectory
…resulting in a robust financial performance trajectory over these years Hospital Revenue has grown at 20% CAGR over last 5 years… …helping expand Hospital EBITDA margin by 800 bps… Hospital Revenue Hospital EBITDA and EBITDA Margin (In INR Cr) (In INR Cr) 17% 18% 2851 13% 514 2343 12% 11% 9% 407 16
Slide 24: True growth rate even higher as non-covid business ramped up
Infact, true growth rate is even higher as the Non-covid business has significantly ramped up to offset the Covid Business… Non-covid revenue has grown at 41% CAGR over FY21-23 41% 273 40% 152 2,984 2,111 1,503 FY21 FY22 FY23 Covid revenue Non covid revenue Non-COVID revenues grew at 41% CAGR over F
Slide 25: Performance of matured hospitals
…and performance of our matured hospitals is ever better, explaining the long- term performance potential of our new hospital investments 1 0 0 Revenue EBITDA and EBITDA Margins 9 0 (In INR Crs) (In INR Crs) 2,729 8 0 -29% 20% 7 0 6 0 537 5 0 4 0 3 0 2 0 1 0 73 -21 EBITDA Margins 0 FY23 FY23 Occupan
Slide 26: Significant capital investments in greenfield and brownfield expansions
We have made significant capital investments in greenfield and brownfield expansions for enabling future growth performance… Significant capex incurred in last few years Capex (INR Cr) Investment Mix (FY23) Maintenance 12% Greenfield 282 47% 117 Brownfield 41% FY22 FY23 7 Hospitals 5 Clinics ~INR 1,
Slide 27: Clear Capital Allocation Strategy for India Business
Clear Capital Allocation Strategy for India Business going forward Internal accruals to enable investment (under our capex plan) to increase Aster India bed capacity to 6,334 beds by FY27 1 6,334 4,855 3,693 3,757 3,905 3,460 3,007 2 FY18 FY19 FY20 FY21 FY22 Curre nt By FY27 Expected Completion Hosp
Slide 28: Asset Light O&M investments through Low Capex Models
…and Asset Light O&M investments through Low Capex Models to further improve our return profile 2022 Adding more beds through the O&M asset light model allows us to take Aster Mother Hospital healthcare to suburban areas at minimal cost Areekode, Kerala 140 capacity beds FY 22 Year of Commencement o
Slide 29: Building the healthcare ecosystem with labs and pharmacies
In addition, we are gradually building the healthcare ecosystem in India by establishing labs, pharmacies etc. to create network effects Doubling of facilities over FY22-23… …has led to a high jump in revenue… Leveraging the ecosystem of our pharmacies and labs to benefit the hospital business No. o
Slide 30: Innovative approach delivering remarkable medical achievements
Our innovative approach towards medical procedures has delivered remarkable medical achievements 1st ever Patent Foramen Ovale (PFO) closure in South Asia using Life Tech Cera Flex PFO device 2nd European Collaboration Center for 1st ever Minimally invasive Laser Infectious Diseases in India Enuclea
Slide 31: High patient satisfaction across our facilities
…resulting in high patient satisfaction across our facilities… Karnataka and Maharashtra Cluster Kerala Cluster Andhra and Telangana Cluster 30
Slide 32: Recognized for unmatched excellence
…recognized for unmatched excellence… SRV Accredited Endometriosis Medcare Women and Children Hospital DNV Accredited Orthopaedics Centre of Excellence | Medcare Orthopaedics and Spine Hospital European Society of HIMMS JCI Medical Accredited Accredited Oncology (Stage 5) for Aster Aster Ramesh Gunt
Slide 33: Aster Hospitals named among best in India
…and Aster Hospitals named among best in India’s medical landscape… Outlook 2023 Best Hospital Ranking Times All India Critical Care Hospital Ranking Survey The Week Hansa Research Best Hospital Survey 3 Aster Medcity Aster CMI Aster Medcity Aster Medcity: Best Multispeciality Hospital: All India Ne
Slide 34: Strategic priorities towards future growth and profitability
Our strategic priorities towards driving future growth and improvement in profitability Increasing Occupancy Current occupancy levels provide meaningful headroom for revenue growth through sweating of assets Asset Light Expansion Low Capex model to achieve better returns Cost Improvement Initiatives
Slide 35: Key Financials
Key Financials
Slide 36: India Financial Summary - Profitability Statement FY23
India Financial Summary- Profitability Statement FY23 Particulars (In INR Cr) FY21 FY22 FY23 Y-O-Y Revenue from Operations 1,654 2,384 2,983 25% Material Consumption 443 666 779 Doctors’ Cost 376 499 647 Employee cost (excl. doctors) 357 443 581 Other expenses 319 421 523 EBITDA (excl. other income)
Slide 37: Balance Sheet - Key Numbers
Balance Sheet- Key Numbers Key Financial Numbers As on March 2021 As on March 2022 As on March 2023 Gross Debt 399 431 597 Cash and Cash Equivalents (Less) 93 112 87 Net Debt (Gross Debt less Cash and Cash Eq.) 306 319 510 Lease Liabilities - INDAS116 346 444 533 Fixed Assets (including Goodwill & E
Slide 38: Region-wise Business Snapshot - Kerala
Region-wise Business Snapshot- Kerala Revenue (In INR Crs) Aster Wayanad 1,691 Aster Mother 1,318 Hospital Areekode Aster MIMS 875 935 Aster MIMS Kottakal Aster Medcity FY 20 FY21 FY22 FY23 EBITDA Aster Capital, Trivandrum (In INR Crs) 356 255 124 124 FY 20 FY21 FY22 FY23 Total Capacity Beds- ALOS (
Slide 39: Region-wise Business Snapshot - Karnataka & Maharashtra
Region-wise Business Snapshot- Karnataka & Maharashtra Revenue (In INR Crs) Aster Aadhar Hospital 817 655 442 433 Aster CMI Aster RV FY 20 FY21 FY22 FY23 EBITDA Aster Whitefield Women and Children Hospital (In INR Crs) 128 83 42 33 FY 20 FY21 FY22 FY23 Total Capacity Beds- ALOS (Days)- Occupancy- EB
Slide 40: Region-wise Business Snapshot - Andhra & Telangana
Region-wise Business Snapshot- Andhra & Telangana Revenue Prime Hospitals - Ameerpet (In INR Crs) Ramesh Main Centre 370 344 314 279 Ramesh Labbipet Ramesh Guntur Ramesh (IB) Vijaywada Ramesh Sanghamitra FY 20 FY21 FY22 FY23 EBITDA Aster Narayanadri (In INR Crs) 69 47 45 31 FY 20 FY21 FY22 FY23 Tota
Slide 41: Business Snapshot - India H1 FY24
Business Snapshot- India H1 FY24 Revenue EBITDA PAT Post NCI (In INR Cr) (In INR Cr) (In INR Cr) 285 1772 91 30% 1408 26% 219 69 31 % 15.6% 16.1% 4.9% 5.1% FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 Operational Performance [FY24 H1 | (FY23 H1)] Total Capacity Beds ALOS (Days) ARPOBD (INR) 4,855
Slide 42: India Financial Summary - Profitability Statement H1 FY24
India Financial Summary- Profitability Statement H1 FY24 Particulars (In INR Cr) FY23 H1 FY24 H1 Y-O-Y Revenue from Operations 1,408 1,772 26% Material Consumption 369 455 Doctors’ Cost 308 383 Employee cost (excl. doctors) 276 357 Other expenses 236 293 Operating EBITDA 219 284 30% Variable O&M fee
Slide 43: Maturity Wise Hospital Performance - India
Maturity Wise Hospital Performance – India FY 24 H1 42 India hospitals0-3 Years: Aster Mother Hospital Areekode, Aster Whitefield Hospital, Aster Narayanadri, Ramesh IB, Aster G Madegowda and Aster PMF Note: 1. Aster India Clinics, Labs, Wholesale Pharmacy and Other unallocated items are not include
Slide 44: Geography-wise Business Snapshot - Half Yearly
Geography – wise Business – Snapshot – Half Yearly 43 KARNATAKA & ANDHRA & KERALA TOTAL MAHARASHTRA TELANGANA FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 Total Capacity Beds 2,193 2,385 1,016 1,423 871 1,047 4,080 4,855 Operational Beds (Census) 1,702 1,833 761 918 602 790 3,065
Slide 45: India Hospital & Clinics Cluster-Wise Trends
India Hospital & Clinics Cluster-Wise Trends 44 Kerala Cluster Karnataka & Maharashtra Cluster Andhra & Telangana Cluster Revenue (INR Cr) Revenue (INR Cr) Revenue (INR Cr) 817 370 344 1,691 314 303 655 279 1,318 516 202 875 935 965 442 433 164 801 386 701 310 FY19 FY20 FY21 FY22 FY23 FY23 FY24 FY19
Slide 46: Segmental
Segmental H1 FY26, No. of Business Units (#) Operational Beds (#) Occupancy (%) In-patient Counts ('000) Out-patient Visits (mn) Hospitals & Clinies (Ex. O&M Asset ight) H-15 C-13 Hospitals - O&M Asset Light Labs & Wholesale Pharmacy Unallocated & Eliminations Performance FY24 H1 — India Total 3,123
Slide 47: Thank You
Thank You Investor Relations: investors@asterdmhealthcare.com
Aster DM Healthcare — Non-Deal Roadshow (December 2023) on 6ix