Fortis Healthcare Ltd. · NSE:FORTIS

Fortis Healthcare — Nomura Investment Forum Asia (NIFA) 2024

46 slides from Fortis Healthcare's conference presentation, May 28, 2024

  1. Slide 1: Intimation of schedule of Investors Meet (cover letter)

    Fortis Healthcare Limited Tower-A, Unitech Business Park, Block-F, South City 1, Sector – 41, Gurgaon, Haryana – 122 001 (India) Tel : 0124 492 1033 Fax : 0124 492 1041 Emergency : 105010 Email : secretarial@fortishealthcare.com Website : www.fortishealthcare.com FHL/SEC/2024-25 May 28, 2024 Nationa

  2. Slide 2: Fortis Healthcare Limited Investor Presentation

    FORTIS HEALTHCARE LIMITED INVESTOR PRESENTATION Nomura Investment Forum Asia (NIFA) 3rd & 4th June 2024 , Singapore 1

  3. Slide 3: Disclaimer

    DISCLAIMER This presentation may not be copied, published, distributed or transmitted. The presentation has been prepared solely by the company. Any reference in this presentation to “Fortis Healthcare Limited” shall mean, collectively, the Company and its subsidiaries. This presentation has been pr

  4. Slide 4: About Fortis Healthcare

    About Fortis Healthcare National Capital Region ➢ FMRI, Gurugram 28 Healthcare Facilities* ➢ FEHI, New Delhi ➢ Shalimar Bagh 1,722 ➢ Noida ➢ Vasant Kunj (O&M) 4,500+ Operational Beds^ ➢ Faridabad Punjab ➢ Manesar, Gurugram ➢ La Femme GK ➢ Mohali 774 ➢ Def Col 6,200+ Doctors ➢ Ludhiana ➢ Ludhiana 2 ➢

  5. Slide 5: Awards & Accolades

    AWARDS & ACCOLADES Fortis • Fortis Shalimar Bagh, Fortis Mohali, Fortis Mulund and Fortis Anandpur bagged multiple awards under various categories at the annual conference organized by Consortium of Accredited Healthcare Organisations (CAHOCON 2023) • Fortis Healthcare won six awards (Nursing and In

  6. Slide 6: Agenda

    AGENDA 1. Clinical Excellence at Fortis 2. Performance Highlights • Earnings and Financial Summary – Q4 FY24 and FY24 3. Performance Review - Hospital Business • Beds Expansion Update • ESG Highlights 4. Performance Review - Diagnostics Business 5. Appendix 5

  7. Slide 7: Clinical Excellence at Fortis

    CLINICAL EXCELLENCE AT FORTIS KEY HIGHLIGHTS 6

  8. Slide 8: Clinical Excellence: FY24 Key Procedures

    CLINICAL EXCELLENCE FY24 Performance – Key Procedures ~60,600 ~28,000 ~3,600 Cardiac Procedures1 Joint Replacements and Robotic Surgeries3 Other Ortho Procedures 1,100+ 7,800+ 11,100+ Transplants2 Neuro and Spine Radiation Therapy Surgeries Patients Note: 1Cardiac Procedures include Cardiac Surgery,

  9. Slide 9: Clinical Excellence: Q4 FY24 Highlights

    CLINICAL EXCELLENCE Q4 FY24 • A 31-year-old woman underwent successful eye cancer treatment with Plaque Brachytherapy at Fortis Memorial Research Institute, Gurugram, using an affordable Ruthenium 106 Plaque made by BARC, Mumbai, which is available at a fraction of the cost compared to the imported

  10. Slide 10: Augmenting Medical Programs / Technology

    AUGMENTING MEDICAL PROGRAMS / TECHNOLOGY ➢ Fortis Hospital, Mohali launched the most ➢ Fortis Hospital Noida launched technically advanced Elekta Versa HD with Truebeam STx, LINAC Radiotherapy SGRT (2nd LINAC at Mohali facility) to attain machine (2nd LINAC at Noida facility) greater precision in ca

  11. Slide 11: Q4FY24 and FY24 Performance Highlights

    Q4FY24 and FY24 PERFORMANCE HIGHLIGHTS 10

  12. Slide 12: Business Performance

    BUSINESS PERFORMANCE Consolidated (INR Cr) 1,268 (18.4%) % Revenue 1,069 (18.7%) 1,101 (17.5%) 6,893 Growth YoY 6,298 5,718 842 740 673 10.1 9.5 FY22 FY23 FY24 Revenue Op. EBITDA PBT* (XX%) Op. EBITDA margin Hospital Business (INR Cr) 5,686 5,107 % Revenue 4,264 1,058 (18.6%) Growth YoY 862 (16.9%)

  13. Slide 13: Q4FY24 Snapshot

    Q4FY24 SNAPSHOT Consolidated Revenue Consolidated Op EBITDA Consolidated PBT1 1,786 Crores 380 Crores 268 Crores (21.3% Margin) 8.7% 40.5% 55.2% Consolidated PAT1 Net Debt / (Cash)3 Net Debt to EBITDA2,3 200 Crores 264 Crores 0.17x vs 0.30x 56.5% Board recommends dividend of INR 1 per share (10% of

  14. Slide 14: FY24 Snapshot

    FY24 SNAPSHOT Consolidated Revenue Consolidated Op EBITDA Consolidated PBT1 6,893 Crores 1,268 Crores 842 Crores (18.4% Margin) 9.5% 15.1% 13.8% Consolidated PAT1 Hospital Business Revenue Diagnostic Business Revenue2 629 Crores 5,686 Crores 1,372 Crores 12.5% 11.3% 1.8% 1. Excluding exceptional ite

  15. Slide 15: Q4FY24 Snapshot

    Q4FY24 SNAPSHOT ➢ Hospital business revenues grew 10.3% to INR 1,490 Cr versus INR 1,350 Cr in Q4FY23. ➢ Hospital Business Operating EBITDA up 50.6% YoY to INR 333 Cr*, EBITDA margin at 22.4%* versus 16.4%* in Q4FY23. ➢ Q4FY24 hospital business ARPOB at INR 2.32 Cr vs INR 2.10 Cr in Q4FY23, up 10.3%

  16. Slide 16: FY24 Snapshot

    FY24 SNAPSHOT ➢ Hospital business revenue at INR 5,686 Cr versus INR 5,107 Cr in FY23, a growth of 11.3% ➢ Hospital business Operating EBITDA at INR 1,058 Cr versus INR 862 Cr in FY23, a growth of 22.7%; Margin at 18.6% vs 16.9% in FY23 ➢ FY24 hospital business ARPOB at INR 2.22 Cr vs INR 2.01 Cr in

  17. Slide 17: Consolidated Earnings Summary – Q4FY24

    CONSOLIDATED EARNINGS SUMMARY – Q4FY24 All figures in INR Crs. Revenue Operating EBITDA & Margin 1,786 380 1,680 271 284 1,643 21.3% 16.5% 16.9% Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4FY24 Up 8.7% Up 40.5% PBT before Exceptional Items PAT* 268 173 175 200 128 127 Q4FY23 Q3FY24 Q4FY24 Q4FY23 Q3FY24 Q4F

  18. Slide 18: Consolidated Earnings Summary – FY24

    CONSOLIDATED EARNINGS SUMMARY – FY24 All figures in INR Crs. Revenue Operating EBITDA & Margin 6,893 1,268 6,298 18.4% 1,101 17.5% FY23 FY24 FY23 FY24 Up 9.5% Up 15.1% PBT before Exceptional Items PAT* 842 629 740 559 FY23 FY24 FY23 FY24 Up 13.8% Up 12.5% *FY24 exceptional gain of Rs 16.0 Cr related

  19. Slide 19: Consolidated Earnings Summary

    CONSOLIDATED EARNINGS SUMMARY All figures in INR Crs. Consolidated Revenue 1,770 1,786 1,657 1,680 1,643 1,560 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Op EBITDA Margin Op EBITDA PBT (before Exceptional items) 21.3% 18.6% 380 17.7% 16.5% 330 16.9% 16.5% 276 271 273 284 268 229 175 173 169 175 Q3FY2

  20. Slide 20: Q4FY24 Hospital Business Highlights

    Q4FY24 HOSPITAL BUSINESS HIGHLIGHTS Key Performance Indicators • Occupancy was at 67%, similar to Q4FY23 Overall Occupancy • Revenue from focus specialties comprising Oncology, 67% 67% 64% Gastroenterology, Neurosciences, Renal Sciences, Orthopaedics and Cardiac Sciences grew 13.8% YoY and contribut

  21. Slide 21: FY24 Hospital Business Highlights

    FY24 HOSPITAL BUSINESS HIGHLIGHTS Key Performance Indicators Overall Occupancy • Occupied beds increased to 2,685 compared to 2,665 in FY23 – however, occupancy declined by 2% due to an 67% 65% increase of 246* operational beds YoY • Revenue from focus specialties comprising Oncology, Gastroenterolo

  22. Slide 22: Q4FY24 & FY24 Diagnostic Business Highlights

    Q4FY24 & FY24 DIAGNOSTIC BUSINESS HIGHLIGHTS Q4FY24 • Revenues were at INR 338 Cr in Q4FY24 as compared to INR 332 Cr in Agilus Revenue Breakup Q4FY23. Revenues for Q3FY24 were at INR 331 Cr. COVID Non COVID • Operating EBITDA stood at INR 47 Cr versus INR 49 Cr in Q4FY23 (14.0% versus 14.9% EBITDA

  23. Slide 23: Operating Performance: Hospital Business

    OPERATING PERFORMANCE HOSPITAL BUSINESS Hospital Business Particulars (INR Cr) Q4FY23* Q3FY24 Q4FY24* FY23 FY24 Operating Revenue 1,350 1,389 1,490 5,107 5,686 Revenue Growth vs LY 9.6% 10.3% 11.3% Reported EBITDA^ 230 254 339 922 1,090 EBITDA growth vs LY 16.9% 47.5% 18.3% Margin 17.0% 18.2% 22.8%

  24. Slide 24: Operating Performance: Diagnostic Business

    OPERATING PERFORMANCE DIAGNOSTIC BUSINESS Diagnostic Business Particulars (INR Cr) Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Operating Revenue 332 331 338 1,347 1,372 Revenue Growth vs LY (0.2%) 1.9% 1.8% Reported EBITDA 55 37 52 263 229 EBITDA growth vs LY (47.7%) (5.7%) (12.8%) Margin 16.5% 11.2% 15.2% 19.5%

  25. Slide 25: Balance Sheet

    BALANCE SHEET March 31, 2024 Balance Sheet (INR Cr) March 31, 2023 Dec 31, 2023 March 31, 2024 Shareholder’s Equity 8,100 8,598 8,556 Debt 703 812 859 Lease Liabilities (Ind AS 116)* 223 299 297 Total Capital Employed 9,026 9,709 9,711 Net Fixed Assets (including intangibles & CWIP) 5,513 6,184 6,22

  26. Slide 26: Performance Review: Hospitals Business

    PERFORMANCE REVIEW HOSPITALS BUSINESS 25

  27. Slide 27: Revenue Mix

    REVENUE MIX FY23 FY24 Gross Revenue : INR 5,361 Cr Gross Revenue : INR 5,987 Cr 41% 41% 59% 59% Non Surgical Revenue Surgical Revenue Contribution from Surgical revenue stood at 59% in FY24, similar to previous period 26

  28. Slide 28: Specialty Mix

    SPECIALTY MIX FY23 FY24 Other Operating Other Operating Revenue, 3.6% Revenue, 1.7% OPD, 12.0% OPD, 13.8% Cardiac, Cardiac, 18.6% 17.8% Other IPD, Other IPD, Ortho, 8.9% Ortho, 8.7% 16.5% 16.4% Renal, 7.1% Renal, 7.3% Gynae, 4.0% Gynae, 3.6% Pulmo, 2.9% Neuro, 8.3% Pulmo, 2.9% Neuro, 8.5% Gastro, 4.

  29. Slide 29: Payor Mix

    PAYOR MIX FY23 FY24 ESI, 0.1% ESI, 0.0% TPAs, 35.3% TPAs, 35.3% Cash : Cash : Domestic, Domestic, 36.9% 36.1% Pvt Corps, Pvt Corps, 0.8% 0.8% International , Govt & International , Govt & 8.0% PSUs, 9.4% PSUs, 8.7% 8.0% CGHS, 3.4% ECHS, 6.1% CGHS, 4.1% ECHS, 7.0% 28

  30. Slide 30: Hospital Business Performance – Q4FY24 and FY24

    HOSPITAL BUSINESS PERFORMANCE – Q4FY24 and FY24 All the key healthcare facilities continue to witness an upward momentum in revenues YoY Revenue 201 207 Q4FY23 Q4FY24 178 153 135 133 129 115 114 116 112 117 105 115 72 83 66 48 47 52 FMRI Mohali BG Road Shalimar Bagh Noida FEHI Mulund Anandpur Jaipur

  31. Slide 31: Hospital Business Performance – FY24

    HOSPITAL BUSINESS PERFORMANCE – FY24 All the top 10 hospitals witnessed healthy ARPOB growth; Six of the top 10 hospitals witnessed occupancy in excess of 70% 3.81 ARPOB (Rs Cr per annum) 3.49 FY23 FY24 2.86 3.01 2.72 2.80 2.46 2.41 2.16 2.00 2.14 1.96 1.92 2.04 1.541.67 1.55 1.21 1.231.33 FMRI Moha

  32. Slide 32: Hospital Margin Matrix

    HOSPITAL MARGIN MATRIX EBITDA No. of Facilities Revenue Contribution Operational Beds ARPOB (INR Cr) Occupancy 20% - 25% 8 62.2% 1,998 2.56 72% FY24* 15% - 20% 5 13.4% 745 1.76 62% 10% - 15% 3 13.8% 640 1.89 70% <10% 5 8.1% 551 1.81 50% EBITDA No. of Facilities Revenue Contribution Operational Beds

  33. Slide 33: Beds Expansion Update

    BEDS EXPANSION UPDATE Fs { 4 hy ,F tid |

  34. Slide 34: Beds Expansion Plan

    Beds Expansion Plan No. of Operational Beds Planned capacity addition of ~2,200 beds* from FY23 to FY28 New Bed Addition No. of Beds at Malar, Vadapalani facilities Major addition at ANP, MUL, Mohali, BG Road and LUD2 701 246 FY23 FY24 FY25 FY26 FY27 FY28 Note: 1. *~2,200 beds addition is total new

  35. Slide 35: Beds Expansion – Plans to expand to ~6,000 beds

    Beds Expansion – Plans to expand to ~6,000 beds Punjab • Planned bed capacity addition of ~2,200 Existing Beds: 774 Projected Beds: 1,306 beds* till FY28, to achieve a total of (Mohali) Jaipur ~6,000 operational beds Existing Beds: 275 NCR Projected Beds: 325 • Majority of beds to be added at units

  36. Slide 36: ESG Highlights

    ESG HIGHLIGHTS 35

  37. Slide 37: ESG Highlights

    ESG HIGHLIGHTS Environment Energy Bio-Medical Waste Stewardship Water Reduced per occupied bed energy Reduced per occupied bed water Created month-wise baseline for bio- consumption in FY 24 by 3.4% medical waste for all units, across all 5 Bio- consumption in FY 24 by 8.4% medical waste categories

  38. Slide 38: Performance Review: Diagnostics Business

    PERFORMANCE REVIEW DIAGNOSTICS BUSINESS 37

  39. Slide 39: Diagnostics Business – Q4FY24

    DIAGNOSTICS BUSINESS – Q4FY24 • During Q4FY24, Agilus conducted 9.61 million tests, versus 9.77 million in Q4FY23 a de-growth of 2% primarily due to lower COVID volumes. In Q3FY24 Agilus conducted 9.85 million tests • Agilus added 200+ Customer touchpoints to its network in Q4FY24 • B2C:B2B revenue

  40. Slide 40: Diagnostics Business – FY24

    DIAGNOSTICS BUSINESS – FY24 • During FY24, Agilus conducted 40.0 million tests, versus 39.1 million tests in FY23 • Agilus added 680+ Customer touchpoints (CTPs) to its network in FY24. Total CTPs as on 31st Mar’24 stood at 3,976. • Agilus’ B2C:B2B revenue mix stood at 53:47 in the year vs 54:46 in

  41. Slide 41: Key Performance Metrics

    KEY PERFORMANCE METRICS Test (mn) Avg. Realization per test (INR) No of Patients (mn) Avg. Realization per patient (INR) 10.8 355 4.4 880 10.6 352 870 350 4.3 10.4 869 860 4.2 10.2 345 850 10 4.1 344 340 840 9.8 4 340 830 9.6 339 335 3.9 829 826 820 9.4 334 3.8 819 822 810 330 9.2 9.77 9.95 10.59 9.

  42. Slide 42: Yearly Revenue Mix FY24 FY23

    YEARLY REVENUE MIX Geographic mix Product Mix Segment Mix Wellness International 3% 10% North B2C, South 33% 53% 29% FY24 Routine B2B, 54% 47% Specialised 36% West East 21% 14% Wellness International 2% North 9% South B2C, 33% 28% 54% B2B, FY23 46% Specialised Routine 38% 53% West East 23% 14% 41

  43. Slide 43: Thank You

    THANK YOU 42

  44. Slide 44: Appendix

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  45. Slide 45: Group Consolidated P&L – Q4FY24

    GROUP CONSOLIDATED P&L – Q4FY24 Particulars (INR Cr) Q4FY23 Q3FY24 Q4FY24 Revenue from operations 1,642.7 1,679.7 1,785.9 Other income 13.8 6.8 9.8 Total income 1,656.5 1,686.5 1,795.7 Expenses 1,371.8 1,395.7 1,404.9 EBITDA* 284.7 290.8 390.8 Margin 17.3% 17.3% 21.9% Finance costs 31.7 33.0 34.7 De

  46. Slide 46: Group Consolidated P&L – FY24

    GROUP CONSOLIDATED P&L – FY24 Particulars (INR Cr) FY23 FY24 Revenue from operations 6,297.6 6,892.9 Other income 61.7 38.3 Total income 6,359.4 6,931.2 Expenses 5,196.3 5,625.3 EBITDA* 1,163.1 1,305.9 Margin 18.5% 18.9% Finance costs 129.1 131.0 Depreciation and amortisation expense 315.7 342.5 PBT

Fortis Healthcare — Nomura Investment Forum Asia (NIFA) 2024 on 6ix