Dr. Lal Pathlabs Limited · NSE:LALPATHLAB

Dr. Lal Pathlabs — Investor Presentation (September 2017)

27 slides from Dr. Lal Pathlabs's investor presentation, September 2017

  1. Slide 1: Dr. Lal PathLabs Limited Corporate Presentation

    Dr. Lal PathLabs Limited Corporate Presentation September 2017

  2. Slide 2: Table of Contents

    2 Table of Contents 1 Our Evolution 2 Dr Lal PathLabs at a glance 3 Experienced Management team 4 Investment Highlights 5 Key Q1 FY18 Highlights 6 Q1 FY18 Financial Performance 7 LPL Strategy for future growth 8 Annexures DISCLAIMER: This presentation may contain ‘forward-looking’ statements at plac

  3. Slide 3: Our Evolution

    3 Our Evolution 1949 – 2005 2005 – 2010 2010 – 2017 Foundation Building capabilities for Strong position in North scale up India, building network in other geographies  1949: Founded by Dr. Major S.  2005: onwards: Investment  Investment by TA Associates K. Lal by WestBridge Capital  Clinical la

  4. Slide 4: Dr. Lal PathLabs at a glance

    4 Dr. Lal PathLabs at a glance Test Menu Established consumer healthcare brand in diagnostic services Specialized Routine testing testing Pan-India integrated coverage with 189 clinical labs (including National Reference Lab1 at Delhi),1,759 Patient  Bio-chemistry  Molecular Service Centers (PSCs)

  5. Slide 5: Experienced Management team

    5 Experienced Management team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Whole-time Director and Chief Chairman and Managing Director Whole-time Director Executive Officer Dilip Bidani Bharath Uppiliappan Shankha Banerjee Chief Financial Officer COO (Strategic Business Unit 1) COO

  6. Slide 6: Investment Highlights

    6 Investment Highlights Well-positioned in one of Scalable model integrated Established consumer the fastest-growing through centralized IT healthcare brand in segments of the Indian platform allows for diagnostic services healthcare industry network expansion Attractive operating Robust financial m

  7. Slide 7: Indian Healthcare Services is a large growth opportunity

    7 Indian Healthcare Services is a large growth opportunity 1.42 bn India’s expected population in 2026 India, highly underpenetrated market 7.6% GDP growth in FY161 INR 4.2 trillion Total Healthcare Expenditure as % of GDP (2013) FY14 India healthcare expenditure 17.1% ~68% Private expenditure on he

  8. Slide 8: Growth Drivers

    8 INR 377 bn Diagnostic Services industry expected to grow to INR 600 bn by FY18 Diagnostic Services Industry Size CAGR: INR 600 bn Growth Drivers 16–17% 1 Increase in evidence-based INR 377 bn treatments 2 Demand for lifestyle diseases- related services to grow 2014–15 2017–18P 3 Focus on preventiv

  9. Slide 9: Diagnostic Services industry remains highly fragmented

    9 Diagnostic Services industry remains highly fragmented Highly Fragmented Industry Standalone Centres, 48% Large Pan- India Chains 35-40% Diagnostic Regional Chain, 15% Chains 60- 65% Hospital Based, 37% Largely fragmented and unorganized Source: CRISIL Report titled “Assessment of Diagnostics Indu

  10. Slide 10: Established consumer healthcare brand in Diagnostic Services

    10 Established consumer healthcare brand in Diagnostic Services Pillars of a Strong Brand Accreditations Nationwide Network Fast Turnaround Time  Accreditations from CAP,  Coverage in metros, Tier 1  24x7 access including online NABL and ISO and Tier 2 cities access and home collection  Centrall

  11. Slide 11: Hub and Spoke Model Network Expansion

    11 Scalable Model integrated through centralized IT platform allows for network expansion Hub and Spoke Model Network Expansion PSC PSC No. of Clinical No. of PSCs No. of PUPs Reference Laboratories Lab Clinical Clinical 5,668 Lab Lab 1,759 189 5,021 4,967 1,559 172 164 4,225 1,340 146 PSC PSC PSC P

  12. Slide 12: Integrated National Network backed by Centralized IT platform

    12 Scalable Model integrated through centralized IT platform allows for network expansion Integrated National …backed by Centralized IT platform Network… which fully integrated network Enterprise Resource  Payables, receivables, inventory, ledgers etc. Planning (ERP)  Scalability and connectivity

  13. Slide 13: Collection network

    13 Collection network LPL’s scalable business model provides strategic advantage for expansion and consolidation National Reference Lab Clinical Labs (Testing/Collection) Patient Service Centers Pickup Points Home Walk-ins Collection Hospitals Doctors Labs Walk-ins  Diverse, large customer pool  W

  14. Slide 14: Attractive operating metrics

    14 Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR mn)  Higher revenue realization per  Consumer brand and network patient on account of:  Increase in samples with patient expansion driving patient  Growth in walk-in customers volumes growth volumes  Hig

  15. Slide 15: Multiple levers in place to drive next phase of growth

    15 Multiple levers in place to drive next phase of growth Expand through Expand presence in Focus on hospital- strategic acquisitions existing markets based clinical labs and partnerships  Cluster and focused geography approach  Deepen presence in North  M&A provides growth kicker  Increase exis

  16. Slide 16: Strategies to deepen our presence

    16 Strategies to deepen our presence South and North India East India West India Focus on Preventive healthcare retail Commitment to quality Online report; screening and chronic network and and reliability of data analytics / lifestyle disease home services management services collection Provide bot

  17. Slide 17: Robust financial performance

    17 Robust financial performance Total Revenue Revenue by Geography (FY17) EBITDA1,PAT and Return on Net Worth INR (Mn) (%) (INR mn / %) EBITDA Margin West India, Others, Before ESOP 27.6% 27.3% 26.7% 27.0% 7.6% 1.2% charge1 South India, 6.7% PAT Margin 14.4% 14.6% 16.8% 17.0% RONW 40.8% 33.7% 31.4%

  18. Slide 18: Robust financial performance (Cont'd)

    18 Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents (Times) (INR mn) 4226 4,000 3882 3.6x 3,500 3.4x 1110 3.3x 3.3x 2945 3,000 1046 2,500 643 2,000 1861 379 3,116 1,500 1143 2,836 86 1,000 2,302 1,482 500 1,057 0 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Q1 FY18 Ca

  19. Slide 19: Key Q1 FY18 Highlights

    19 Key Q1 FY18 Highlights  Volume growth is progressively picking-up and has shown QoQ improvement.  During Q1 FY18 :  Revenues were higher by 12% at Rs. 2,493 million driven by a combination of volumes (9% growth) and price-mix improvement (2.5%)  Normalised EBITDA (after eliminating the impact

  20. Slide 20: Q1 FY18 Financial Performance

    20 Q1 FY18 Financial Performance FY17 FY17 Particulars (Rs. mn) Q1FY18 Q1FY17 Growth % Ind AS IGAAP Revenues 2,492.6 2,228.4 11.9% 9,123.8 9,123.8 Total Expenditure 1,837.1 1,622.9 13.2% 6,749.2 6,758.4 EBITDA 655.2 605.4 8.2% 2,374.6 2,365.4 RSU & stock based comp. cost 24.8 7.4 86.1 80.5 Normalise

  21. Slide 21: Financial Highlights

    21 Financial Highlights All figures in Rs mn Revenues 2,622 2,493 2,228 2,199 2,075 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18  Q1 FY18 revenues showed a continuing 11.9% YoY increase on account of volume growth of 9.1% and pricing mix benefit of 2.5%. The drivers include;  Enhanced footprint given additi

  22. Slide 22: Financial Highlights

    22 Financial Highlights All figures in Rs mn Normalised EBITDA excl stock based cost and CSR expense  Q1 FY18 normalised EBITDA (after eliminating the impact of ESOP and other stock based remuneration charges) showed 11.0% increase on the back of; 680  Progressive improvement in volume trends and

  23. Slide 23: LPL Strategy for future growth

    23 LPL Strategy for future growth 1 Strengthen Existing Operations Boosting quality & Improving Grow basic Online initiatives Investment in reliability turnaround times radiology practice and data analytics branding standards for testing 2 Expansion in Offering Improve breadth Preventive Chronic & L

  24. Slide 24: Annexures

    Annexures • IPO transaction • Present Shareholding

  25. Slide 25: IPO transaction

    25 IPO transaction Issuer  Dr. Lal PathLabs Limited (“LPL” or “the Company”) Transaction Type  Initial public offering of up to 11,600,000 shares (Face Value Rs.10 each) Issue Open and Close Dates  December 8, 2015 – December 10, 2015 Type of Offering  Offer for Sale by existing shareholders Tot

  26. Slide 26: Shareholding as on June 30, 2017

    26 Shareholding as on June 30, 2017 57.9% Promoters 1.9% MFs FPIs, FIIs, AIF FI/Banks Other Public 22.5% Employee Trust 6.2% 11.3% 0.24%

  27. Slide 27: Contact us

    27 Contact us About Dr Lal PathLabs Limited (DLPL) Dr Lal PathLabs Limited is one of India’s leading consumer healthcare brand in diagnostic services. It has an integrated nationwide network, where patients and healthcare providers are offered a broad range of diagnostic and related healthcare tests

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