Max India Ltd · NSE:MAXIND
Max India — Investor Presentation (September 2008)
52 slides from Max India's investor presentation, September 2008
Slide 1: Max India Limited Investor Presentation
Max India Limited Investor Presentation www.maxindia.com BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:IN 1
Slide 2: Max India – An Introduction
Max India – An Introduction Max India Limited is a multi-business corporate, driven by the spirit of enterprise, focused on knowledge, people and service oriented businesses of Life Insurance, Healthcare and Clinical Research. Max’s other businesses are Speciality Plastic Products for the packaging
Slide 3: Max Group – Key Highlights
Max Group – Key Highlights n A leading mid sized conglomerate of repute in India Life Insurance – 74:26 JV with New York Life Healthcare – 70% owned. 8 healthcare facilities with 800 Beds Clinical Research – 100% owned. Over 200 active sites Speciality Packaging – capacity of 29,000 TPA. 100
Slide 4: Consolidated Performance Snapshot
Consolidated Performance Snapshot Rs. Crore CONSOLIDATED FINANCIAL HIGHLIGHTS Growth Growth Details Q1’08-09 FY’07-08 % % Operating Revenue 1,022 82% 3,244 78% Investment and Other Income 99 -28% 367 110% Total Revenue 1,121 60% 3,611 81% EBITDA (12) - 71 - 3,611 Net Income Before Tax (41) (43) 1,99
Slide 5: Max India – Shareholding
Max India – Shareholding Shareholding Pattern – Sep 30, 2008 Number of Outstanding Shares Promoter Group – Analjit Singh 222,022,720 34.4% Others FDI – 15.6% Warburg Pincus Market Capitalization 13.4% US$ 1 Billion FII – Warburg FII – Others Pincus 27.5% 9.1% 5
Slide 6: Max India Restructures MNYL JV
Max India Restructures MNYL JV… n Enhanced value for Max India shareholders n New York Life has an option for 8 years to increase its shareholding in MNYL by upto 24%, subject to regulations n Option value at fair market based formula, less discount of 10%, against a preferential formula earlier n D
Slide 7: Max India to foray into Health Insurance
Max India to foray into Health Insurance… n Joint-venture with BUPA Finance Plc., UK, world leader of highest pedigree in this space n Max India to hold 50% in the joint-venture n Registration with IRDA in fourth quarter of 2008 n Market roll-out by fourth quarter of 2009 n Initial capital of Rs. 10
Slide 8: Max New York Life Insurance [MNYL]
Max New York Life Insurance [ MNYL ] www.maxnewyorklife.com 8
Slide 9: Max New York Life Insurance [MNYL]
Max New York Life Insurance [ MNYL ] n Joint Venture between Max India and New York Life, a fortune 100 company with around $280 billion in assets under management n Max India and NYL jointly drive growth strategy n Max provides Indian industry perspective and manages the regulatory environment n Pe
Slide 10: MNYL – Road Map to Becoming India's Most Admired Life Insurance Company
MNYL – Road Map to Becoming India’s Most Admired Life Insurance Company Key Public Messages VISION Become the most admired Life Insurance Company in India A trusted life insurance specialist Part of top quartile new Life Insurance Companies Customer centric National Player Financially resp
Slide 11: India's Life Insurance Industry is Witnessing Growth
India’s Life Insurance Industry is Witnessing Growth n LIC CAGR of 30% over the last three years Private Life Insurers - 9 Market share of Private players has increased Individual Adjusted Premium n from 25% 2004-05 to 50% in 2007-08 USD Bn 6 Growth driven by… 3 6.3 n Strong GDP growth (average of 8
Slide 12: Market Position
Market Position Insurance Sales (Rs. Crore) Individual New Business Individual Policies Company Premium (‘000) (Apr-Aug’08) (FY 2007-08) (Apr-Aug’08) (FY 2007-08) ICICI Prudential 2155 6,684 1,054 2,914 Bajaj Allianz 1419 5,642 960 3,745 SBI Life 891 2,653 285 926 Reliance Life 882 1,873 573 1074 Bi
Slide 13: MNYL Key Differentiators
MNYL Key Differentiators n Multi-channel distribution strategy Highly productive agency model (Over double the average productivity of private players) Strong non-agency relationships contributing to over 34% of sales in FY 07-08 n Comprehensive product suite across all market segments Strong
Slide 14: MNYL – The Leading Agency Sales Force
MNYL – The Leading Agency Sales Force Adjusted Single premium New Business Apr – Jun 08 Agents Premium per Rank Cases per Agent * Rank (Agency) (Rs. Crore) Agent * (Rs.) 247 46,800 21,357 2 1.29 1 283 40,000 23,614 1 0.69 3 520 300,000 5,878 10 0.37 7 118 53,000 7,419 8 0.37 7 288 115,000 8,941 6 0.
Slide 15: MNYL Focus… Protection Oriented, Longer Tenor Life Insurance
MNYL Focus… Protection Oriented, Longer Tenor Life Insurance PROPORTION OF Tenure Age of Insured PRODUCT TYPE POLICIES (%, by (Years) (Years) number) WHOLE LIFE 18.4 42 34 ENDOWMENT 14.1 22 28 TERM 3.6 23 35 DEFERRED 0.4 16 42 ANNUITY MONEY BACK 10.2 14 34 UNIT LINKED 53.3 23 34 As on Jun 30, 2008 2
Slide 16: MNYL – Embedded Value 2007-08
MNYL – Embedded Value 2007-08 Amount in Rs. Crore 300 1,316 22 35 267 10 Operating Maintenance 954 Other New Capital Variance Expense adjustment Injection Overrun 102 Value of New 670 Business Unwind of discount 464 Implied NBM is 20.4% 362 on APE* 206 Opening EV Denotes increase to EV Net Worth Clo
Slide 17: MNYL – Key Assumptions to Embedded Value
MNYL – Key Assumptions to Embedded Value Economic Assumptions Particulars Assumptions Cash/Money Market/TB 6.50% G Secs 8.00% Corporate Bonds 8.95% Equities 13.00% Inflation 6.00% Risk Discount Rate 13.00% Tax rate 14.2% (12.5% plus 10% surcharge +3% education cess) Sensitivity n For change in risk
Slide 18: MNYL – Growth Strategy
MNYL – Growth Strategy 20 Mn Policyholders AFYP Rs. 12,000 Crore by FY 11-12 by FY 11-12 MNYL growth rate*: FY 08 – 70%; FY 09 (Apr – Jun) – 73% 250 Offices every year, 300,000 Agents 900 Agency & 700 Rural Offices by FY 11-12 by FY 11-12 *Growth rate calculated on Individual Adjusted Premium 18 US$
Slide 19: MNYL – Key Highlights
MNYL – Key Highlights Quarter Ended Y-o-Y Year Ended Y-o-Y Key Business Drivers Unit Jun-08 Jun-07 Growth Mar-08 Mar-07 Growth a) Sales Value (Annualized first year premium) Rs. Crore 541 309 75% 1,676 970 73% b) Average case size Rs. 22,145 21,848 1% 21,923 21,810 1% c) Case rate per agent per mont
Slide 20: MNYL – Growth Strategy
MNYL – Growth Strategy n MNYL would continue to be an agency led multi-channel distribution company. Key focus areas in distribution would be: Grow agency and rural offices to build large geographic footprint Segment agency to build profitable scale Strengthen and expand bancassurance and part
Slide 21: Max Healthcare [MHC]
Max Healthcare [ MHC ] www.maxhealthcare.in 21
Slide 22: Indian Healthcare
Indian Healthcare Key Drivers Market Size n Key changes related to lifestyle and chronic 2100 disease patterns Indian Healthcare industry n Minimally Invasive Surgery, lower ALOS & safer (USD Bn) expected to grow at a 15% surgical procedures – encouraging demand CAGR till 2012 to n Deeper penetratio
Slide 23: MHC – Model
MHC – Model Heart and Vascular Neurosciences n Max Heart and Vascular Institute Joint Replacement and Orthopaedics n Max Super Speciality Hospital TERTIARY Aesthetics and Reconstructive surgery Oncology Surgery and inpatient facilities Mother and Child n Max Hospitals – 4 High-end di
Slide 24: MHC – Key Differentiators
MHC – Key Differentiators n Comprehensive world-class healthcare services n State-of-the-art infrastructure and facilities n Established brand name with leading specialist doctors n Trained and anchored resources n Leadership in key super-specialties in tertiary care Centres of excellence in cardi
Slide 25: MHC – Key Highlights
MHC – Key Highlights Fact Sheet Shareholding Pattern Healthcare facilities 8 Number of outstanding shares 237,094,548 Physicians 1,250* Max India Limited Other support staff 2,800 70.1% Patient base Over 600,000 Patient transactions Over 150,000 pm Beds 800 ICU beds 225 OTs 20 Cathlabs 3 Others 6.0%
Slide 26: MHC – Key Highlights
MHC – Key Highlights Revenue & Contribution Margin Trend 54.8% 400 53.1% 55% ALOS – 3.2 52.7% days 53% 300 51.6% (Rs. Crore) 50.6% 51% 200 49% 100 47% 45 131 245 372 100 0 45% 2004-05 2005-06 2006-07 2007-08 Q1'FY09 Revenue Contribution % EBITDA is positive… close to reporting cash profits *Average
Slide 27: MHC – Second Phase of Expansion
MHC – Second Phase of Expansion National Capital Region Max Balaji Hospital – Patparganj Max Hospital – Shalimar Bagh Tertiary Care Tertiary Care / Multi-Speciality n Around 270 beds n Around 300 Beds n Launch expected by August 2009 n Launch by 2010 n Tower specialties – oncology, infertility, orth
Slide 28: MHC – Project Cost and Funding
MHC – Project Cost and Funding n Max India Current – Rs. 166 Crore Equity Future – Rs. 54 Crore n Warburg Pincus – Rs. 140 Crore Capital n IFC, Washington – Rs. 50 Crore Rs. 430 Crore n Other Foreign Investors – Rs. 20 Crore Preference Project Cost Capital n IFC, Washington Rs. 1,100 Crore Rs. 2
Slide 29: Max Neeman Medical International [MNMI]
Max Neeman Medical International [ MNMI ] www.neeman-medical.com 29
Slide 30: Indian Clinical Research Industry
Indian Clinical Research Industry Revenue Mix - Clinical Trials Indian clinical trials industry - US$ 220 million Phase-III 30% Phase-IV 10% Key Drivers n Huge patient population base with therapeutic diversity Phase-II 40% Phase-I 20% n Cost arbitrage Industry projected to grow to US$ 1.3 billion b
Slide 31: MNMI – Contract Research Organization
MNMI – Contract Research Organization n Service offerings include… Project management Monitoring Site management Data management, includes bio-statistics and report writing Clinical trial material supply chain management n Confirmed order book of Rs 36 Crore and BD pipeline of Rs 85 Crore
Slide 32: MNMI – Select List of Clients
MNMI – Select List of Clients 32
Slide 33: Max Speciality Products [MSP]
Max Speciality Products [ MSP ] www.maxindia.com 33
Slide 34: Global BOPP Industry
Global BOPP Industry KTA BOPP - Global Demand Supply 9000 100% 8000 78% 80% 82% 84% 87% 90% Key Drivers 80% 7000 70% 6000 n Global flexible packaging industry – US$ 50 bn, 60% 5000 50% of which BOPP Films contribute 70% 4000 40% 3000 30% n Growth of flexible packaging Industry ~ 15% 6,756 5,602 7,26
Slide 35: MSP – Key Differentiators
MSP – Key Differentiators Speciality Metallised Commodity Coated Films Foils (Preferred) Films End Use Packaging, Packaging, Packaging, Packaging, Lifestyle, Industrial, Lamination, Lamination, Industrial Apparels Textiles Capacitors* Industrial, Our Focus Max Speciality Products is much more than p
Slide 36: MSP – Key Highlights
MSP – Key Highlights Track Record of Strong Performance… n BOPP lines of 29,000 TPA running at 100% utilization n EBITDA Margin for Q1’FY09 at 14% n Return on Capital Employed for the quarter ended Jun’08 at 18% n Non-binding MoU with a world leader for manufacture and distribution of thermal films
Slide 37: Thank You
Thank You 37
Slide 38: Max India – Management Team
Max India – Management Team Mr. Analjit Singh Mr. Analjit Singh has been the driving force behind Max Group’s sustained growth and success since the early 80’s. Mr. Chairman & Managing Singh a prominent industrialist is an alumnus of Doon School; University of Delhi, and the Graduate School of Manag
Slide 39: Max India – Management Team
Max India – Management Team Mr. P. Dwarakanath Mr. Dwarakanath brings rich and varied experience of 37 years primarily from GSK GlaxoSmithKline Consumer Director - Group Healthcare and is currently the non Executive Director of GSK. He has done his Post Graduate diploma in Personnel Management and I
Slide 40: MNYL – Management Team
MNYL – Management Team Mr. Bennett joined MNYL in 2005 as the Managing Director and CEO and has led the company into its next growth Mr. Gary Bennett phase. An Asia life insurance veteran, he has over 25 years of experience in the industry in key management positions Managing Director for a number o
Slide 41: MHC – Management Team
MHC – Management Team Mr. Shivdasani has over 30 years of experience in service and manufacturing industry with companies including Mr. Mukesh Ranbaxy and Bank of America. After joining Max India in 2001, Mr. Shivdasani was re-assigned to Max Healthcare and Shivdasani over the years has formed the L
Slide 42: MHC – Key Physicians
MHC – Key Physicians Padma Shri Dr. Rustom Phiroze Soonawala Eminent and Internationally renowned Obstetrician & Gynaecologist. MD, FRCS, FRCOG Former President of the Federation of Obstetricians and Gynaecologists Chairman, Obstetrics & Gynaecology Dr. Praveen Chandra Internationally Renowned
Slide 43: MHC – Vision / Mission
MHC – Vision / Mission Key Differentiators PASSION Build Trust Focused NCR centric delivery – for operational excellence Deliver world class healthcare with a service focus, by creating an Close to customer – geography VISION institution committed to the highest standards of medical & service
Slide 44: MHC – Accreditations and Awards
MHC – Accreditations and Awards Express Healthcare Excellence Awards (2007 – 08) “Innovative Marketing Practices” First in North India to get NABH on Feb. 6th, 2007 “Best Managed Healthcare Program (Health Insurance/TPA)” 44
Slide 45: MHC – Key Highlights
MHC – Key Highlights Quarter Ended Y-o-Y Year Ended Y-o-Y Key Business Drivers Unit Jun-08 Jun-07 Growth Mar-08 Mar-07 Growth a) Revenue Rs. Crore Inpatient Revenue 78.1 66.8 17% 301.5 197.1 53% Outpatient Revenue 21.4 15.3 40% 70.9 47.7 49% Total 99.5 82.1 21% 372.4 244.8 52% b) Profitability Contr
Slide 46: MHC Tertiary Care Facility, Saket [South Delhi]
MHC Tertiary Care Facility, Saket [South Delhi] MAX HEART & VASCULAR INSTITUTE MAX SUPER SPECIALITY HOSPITAL (December 2004) (May 2006) n 200 patient beds n 191 beds (including 63 critical care beds) n 3 OTs, 2 Cardiac Catheterization Labs n Post Surgery Critical Care Unit n 7 OTs, 20 Consult Chambe
Slide 47: MHC Secondary Care Facility [Delhi]
MHC Secondary Care Facility [ Delhi ] PITAMPURA PATPARGANJ (February 2002) (May 2005) (North Delhi) (East Delhi) 93 inpatient beds 147 inpatient beds 2 OTs 3 OTs Lithotripsy Mother and child care Mother and child care Orthopaedics Non-invasive cardiology General surgery Plastic
Slide 48: MHC Secondary Care Facility [Suburb of Delhi]
MHC Secondary Care Facility [ Suburb of Delhi ] GURGAON NOIDA (July 2007) (August 2002) 122 inpatient beds 39 inpatient beds 3 OTs 2 OTs Ophthalmology (anterior and posterior) Mother and child care Woman and child (including infertility) Non-invasive cardiology Medical & surgical i
Slide 49: MHC Speciality Centres – Panchsheel [South Delhi]
MHC Speciality Centres – Panchsheel [South Delhi] OPTHALMOLOGY AND DENTAL CARE SPECIALIST CONSULTS AND (November 2005) HIGH-END DIAGNOSTICS (August 2006) Lasik, OPD and diagnostics GP and specialist consults Dental – 3 chambers Full diagnostics (including MRI) Support services and offices
Slide 50: MSP – Performance Snapshot
MSP – Performance Snapshot Quarter Ended Y-o-Y Year Ended Y-o-Y Key Business Drivers Unit Jun-08 Jun-07 Growth Mar-08 Mar-07 Growth a) Sales Quantity – BOPP Tons 6,809 3,899 75% 23,929 11,985 100% b) Revenue Rs. Crore 97.8 52.9 85% 306.0 166.0 84% c) Profitability: Contribution Margin Rs. Crore 34.4
Slide 51: Disclaimer
Disclaimer This presentation has been prepared by Max India Limited (the “Company”). No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in the presentation. The past performan
Slide 52: Max India Ltd.
MAX INDIA LTD. Max House, Okhla, New Delhi – 110 020 Phone: +91 11 26933601-10 Fax: +91 11 26933619 Website: www.maxindia.com Sep 2008 52