Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Motilal Oswal 20th Annual Global Investor Conference and Ambit 11th Annual Singapore Confe (August 2024)
42 slides from Max Healthcare Institute's conference presentation, Aug 14, 2024
Slide 1: Cover letter to stock exchanges
August 14, 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.: Pres
Slide 2: Investor Presentation
Investor Presentation August 14, 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 23 Appendix 30 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 revenue, EBITDA and market capitalisation Current capacity ~4,300 beds 20 ~75% ~75% NCR Facilities Beds in metros Q1 FY25 Occupancy 402 Shalimar Bagh Eqova 516 402 387 BLK Patparganj Vaishali 23% 44% ~33% Revenue CAGR^ EBITDA CAGR^ Q
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: Leading clinically comprehensive hospital chain with focus on research and academics
Leading 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 ~1,4
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 MHC well to capitalise on medical tourism India’s foreign medical tourism industry has 17 company & partner-owned Patient Assistance been growing Centres (PACs) across 15 countries Company-owned PACs Partner-ow
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% 75% 67 64 66 64% 65% 68% 67% 65% 67% 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 Board and dynamic management team
Distinguished Board and dynamic management team Distinguished Board of Directors Mr. Abhay Soi Ms. Amrita Gangotra Mr. Anil Bhatnagar Mr. Kummamuri Chairman and Managing Technology Leader & Former Senior Lawyer & Arbitrator Narasimha Murthy Director member of Exec. Mgmt at Chartered Accountant Bhart
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 ₹ 258 Cr in Q1 FY25 3.1 Brownfield • ~2,600 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^ Nanavati Hospital* 10,000+ Lucknow, Gomti Nagar Sec. 56 Gurugram 2,450 Saket Complex (Smart) 250 Mohali Saket Complex (Vikrant) 250 550 140 Patpa
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
3 Snapshot of newly operationalized + acquired hospitals 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 (250 beds operational), 8.9L sft. BUA 200 beds,
Slide 20: Strong track record of successful acquisitions
3 Strong track record of successful acquisitions • Management team has done multiple successful acquisitions including BLK, Nanavati and Max Healthcare • Adequate headroom driven by strong free cash flows and low leverage to pursue M&A even after spend on brownfield and greenfield expansions Case st
Slide 21: Develop asset light adjacencies: Max Lab
4 Develop asset light adjacencies: Max Lab – Non-captive pathology SBU Operational footprint Organized diagnostics players to grow faster than overall Diagnostic industry (as of June 30, 2024) India Diagnostic market to see steady growth Indian Diagnostic Industry mix by type of providers (₹ Bn) 35-
Slide 22: Develop asset light adjacencies: Max@Home
4 Develop asset light adjacencies: 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 health
Slide 23: 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) 84.9 ~7X ~6.7 lac growth Patient registrations till date 10.9 ~85,000 Monthly Active Users Launched
Slide 24: Financial Highlights
By MAX Healthcare Financial Highlights
Slide 25: 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 26: Network P&L Statement: Q1 FY25
Network P&L Statement: Q1 FY25 Figs in ₹ Cr Q1 FY24 Q4 FY24 Q1 FY251 Amount % NR Amount % NR Amount % NR Gross revenue 1,719 1,890 2,028 Net revenue 1,629 100.0% 1,800 100.0% 1,935 100.0% Direct costs 650 39.9% 707 39.3% 773 39.9% Contribution 979 60.1% 1,093 60.7% 1,162 60.1% Indirect overheads2 54
Slide 27: Network Profitability: Annual Trend
Network Profitability: Annual Trend Figs in ₹ Cr FY21 FY22 FY23 FY24 Amount % NR Amount % NR Amount % NR Amount % NR 1 Gross revenue 3,881 5,509 6,236 7,215 Net revenue 3,629 100.0% 5,218 100.0% 5,904 100.0% 6,849 100.0% Direct costs 1,508 41.6% 2,103 40.3% 2,304 39.0% 2,675 39.1% Contribution 2,121
Slide 28: Memorandum Consolidation of Network P&L: Q1 FY25
Memorandum Consolidation of Network P&L: Q1 FY25 Figs in ₹ Cr MHIL & its Partner Healthcare Facilities ("PHF") Financials MHC Network subsidiaries & Eliminations Silos (IGAAP Audited)* (Consolidated) & (Certified by an Ind AS Balaji GM Modi Devki Devi IND AS Adjustment(2) ICA) Audited Society Societ
Slide 29: Network Balance Sheet
Network Balance Sheet1 (Includes Managed and Partner Healthcare Facilities) Figs in ₹ Cr Mar 2023 Particulars Sep 2023 Mar 2024 8,070 Shareholders' Equity (incl. corpus & other equity) 8,623 9,295 682 Gross Debt2 606 1,177 3 440 Deferred / Contingent Consideration Payable 463 461 150 Put Option Liab
Slide 30: Thank you
By MAX Healthcare Thank you
Slide 31: Appendix
Appendix 1. ESG & CSR Updates 2. Payor & Speciality Profiles, Network Structure, IT & HR 30
Slide 32: Appendix 1: ESG Highlights, CSR Initiatives
Appendix 1 ESG Highlights CSR Initiatives 31
Slide 33: ESG Highlights
ESG Highlights Environment ISO 14001 certification received for twelve 41% water recycled out of total water 0.97 KL per bed fresh water consumption in hospitals consumption in FY24, up from 39% in FY23 FY24, down from 0.98 kilolitres per bed in FY23 14% share of renewable energy in total >55% of ou
Slide 34: CSR Initiatives
CSR Initiatives Initiatives undertaken on Education CMD and DG Delhi Prisons inaugurating Press coverage in Times of India & Construction of Pond in Meerut the Max Skill Training for Sustainable Dainik Jagran (Rajpura Village) Livelihood at Tihar Jail Focus areas for CSR: Education and Water Sustain
Slide 35: Appendix 2
Appendix 2 Payor & Speciality Profiles Network structure IT Infrastructure HR Initiatives 34
Slide 36: Payor & Speciality Profiles
Payor & Speciality Profiles Q1 FY25 Payor Mix (revenue share) Q1 FY25 Speciality Mix Institutional Others +15% Y-o-Y OBGY and pediatrics 9.2% Oncology* 17.9% Self Pay +21% Y-o-Y Liver & biliary 5.4% 25.2% sciences 3.4% International 34.9% Pulmonology +11% Y-o-Y 3.2% 8.3% MAS and Revenue from general
Slide 37: Network Holding Structure
Network Holding Structure (as of June 30, 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@Home)
Slide 38: 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 39: 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 ▪ Certified as Great Place To Work all that we do, committed to Care programme through capability for medical & non-med
Slide 40: 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 41: 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 42: About Us
About Us Max Healthcare Institute Limited (Max Healthcare) is one of India’s largest healthcare For further information, please visit organizations. It is committed to the highest standards of clinical excellence and patient care, supported by latest technology and cutting-edge research. www.maxheal