Metropolis Healthcare Ltd. · NSE:METROPOLIS
Metropolis Healthcare — Q4 FY2021 Earnings Presentation
70 slides from Metropolis Healthcare's earnings presentation, May 27, 2021
Slide 1: Intimation of Investor Presentation to exchanges
Ref: MHL/Sec&Legal/2021-22/12 Date: May 27, 2021 To, Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Dalal Street, Exchange Plaza, Plot No. C/1. G Block, Mumbai - 400 001. Bandra -Kurla Complex, Ba
Slide 2: Reaching Out Responsibly - Investor Presentation May 2021
Reaching Out RESPONSIBLY Investor Presentation - May 2021
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Metropolis Healthcare Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Q4 & FY21 Performance
Q4 & FY21 Performance... TRANSFORMING FOR A NEW T@MORROW
Slide 5: Q4FY2021 - Performance Snapshot
Q4FY2021 - Performance Snapshot Revenue Patient Visits Rs. 292 Crores 3.2 Mn + 42% YoY + 29% YoY EBITDA Margin No. of Tests Q4FY21 Key Highlights (Before CSR & ESOP) 35.5% 6.5 Mn + 23% YoY + 1040 bps YoY Profit After Tax Revenue Share of B2C in Focus Cities (Non Covid) Rs. 61 Crores 56% + 296% YoY B
Slide 6: FY2021 - Performance Snapshot
FY2021 - Performance Snapshot Revenue Patient Visits Rs. 998 Crores 9.8 Mn + 17% YoY - 2% YoY EBITDA Margin No. of Tests FY2021 Key Highlights (Before CSR & ESOP) 30.2% 19.0 Mn - 3% YoY + 290 bps YoY Revenue Share of B2C in Profit After Tax Focus Cities (Non Covid) Rs. 183 Crores 58% + 44% YoY + 200
Slide 7: Non-Covid revenue grows strongly during Q4
Non-Covid revenue grows strongly during Q4 +15.1% Non-Covid Revenues +0.1% 91.7 79.6 79.7 Up 7% Up 6% Up 63% YoY YoY YoY ✓ Non-covid revenue continued to gain traction and post Jan-21 Feb-21 Mar-21 strong growth on YoY basis. Mar-21 growth on QoQ basis remained encouraging Covid Revenues +80.2% 18.8
Slide 8: Healthy revenue growth led to operating leverage benefits
Healthy revenue growth… led to operating leverage benefits Month-wise Revenue (In Crs.) Month-wise EBIDTA (In Crs.) +22% ✓ Business continued to witness strong recovery as +51% 91.1 74.4 29.4 most of the lockdown restrictions were eased January January 19.4 during Q4 ✓ During Q4FY21, recorded highes
Slide 9: Strong recovery in Business
Strong recovery in Business… Non-Covid Business recovered from Q3FY21 onwards… Non-Covid Business 251 grew on YoY basis in 224 224 Q4FY21 even after 203 normalising lockdown during the 2nd half of Lockdown impact during Q4FY20 223 206 March 2020 (in Rs. Crs.) 189 102 Non-Covid Growth Non-Covid Recov
Slide 10: Covid a smaller pie of overall revenues in Q4
Covid a smaller pie of overall revenues in Q4… Improving revenue contribution from Non-Covid business Q1FY21 Q2FY21 Q3FY21 Q4FY21 19% 14% 29% 34% 71% 66% 81% 86% Non Covid Covid ✓ Covid Tests contributed a significant portion of revenue during Q1 & Q2FY21 on account of higher test volumes and value
Slide 11: Q4 & FY21 Consolidated Financial Performance
Q4 & FY21 Consolidated Financial Performance EBIDTA Rs. (In Crs) Revenue Rs. (In Crs) Reported EBIDTA Rs. (In Crs) PAT (Rs. in Crs) Before CSR & ESOP +17% +29% +44% +24% 998 301 183 288 856 292 233 104 61 232 97 128 206 Q4 52 52 16 Q3 275 223 90 42 59 Q2 63 63 87 Q1 223 289 63 43 63 61 95 92 27 203
Slide 12: Operating Performance
Operating Performance No. of Patient Visits (In Mn.) FY20 FY21 +8.9% 10.0 9.8 +29% 8.9 +9% -42% -5% 7.7 3.17 7.0 2.75 2.62 2.67 2.35 2.45 2.45 1.37 FY17 FY18 FY19 FY20 FY21 Q1 Q2 Q3 Q4 No. of Tests (In Mn.) FY20 +7.4% FY21 19.6 19.0 +23% 16.0 17.0 +7% 14.3 -8% -39% 6.46 5.24 4.83 4.78 5.12 5.26 4.34
Slide 13: Operating Performance
Operating Performance Revenue Per Patient (In Rs.) +6.9% +5.7% +9.4% +10.0% 1,015 836 854 856 856 905 841 920 841 925 778 FY17 FY18 FY19 FY20 FY21 FY20 FY21 Q4FY20 Q4FY21 Q4FY20 Q4FY21 Total Business Non-Covid Business Total Business Non-Covid Business Revenue Per Test (In Rs.) +8.3% -0.7% +15.4% +6
Slide 14: Steady Focus on Balance Sheet continues
Steady Focus on Balance Sheet continues Debtors Days*# Working Capital Days* 55 11 ✓ We have continued to focus on 41 collection efficiency and improved our Debtor days & Overall Working Capital 4 days. ✓ Metropolis is a Zero-Debt company with Mar-20 Mar-21 Mar-20 Mar-21 growing cash & cash equivale
Slide 15: Network Strategy
Network Strategy Laboratory Network Service Network Lab on Lease +7.1% ARC -10% +4% Greenfeild 124 125 Third Party PSCs 2,731 119 2,555 20 2,336 2,447 106 19 20 Owned PSCs 598 95 8 477 498 2 575 1,650 520 100 104 105 1,873 1,721 1,806 93 98 887 1,506 308 879 356 223 251 255 260 249 251 FY17 FY18 FY1
Slide 16: Share of B2C Business in Focus Cities at 58% in FY21
Share of B2C Business in Focus Cities (Non-Covid) at 58% in FY21 ✓ Excluding Covid-19 revenues, our B2C contribution B2C Contribution in Focus Cities (Non-Covid Business) (Rs. in Crs.) continues to increase ✓ Our aspirations is to achieve 65% B2C contribution in focused cities in coming years remain
Slide 17: Market Dynamics - a long runway of growth
Market Dynamics – a long runway of growth Revenue Mix between Focus, Seeding & Others Cities (Total Business) Revenue Mix between Geographies (Total Business) 5% 9% 4% 10% 19% 25% 26% 24% FY20 FY21 FY20 FY21 56% 21% 60% 54% 58% 19% 5% 6% Others Seeding Focus North South East West International ✓ Con
Slide 18: High Value Specialized Tests is increasing
High Value Specialized Tests is increasing… FY20 FY21 FY20 FY21 Volume Mix (Total Business) Value Mix (Total Business) 1% 8% 6% 13% 14% 18% 1% 22% 45% 41% 37% 26% 40% 56% 37% 36% Routine Semi-Specialized Volume Mix (Non-Covid Business) Specialized Value Mix (Non-Covid Business) Wellness & Others 1%
Slide 19: Home Visit Service Gaining Traction
Home Visit Service Gaining Traction Home Visits Revenue grew sharply in FY21 Home Visits Revenue (Total Business) Home Visits Revenue (Non-Covid Business) Rs. Crs. Rs. Crs. +108% 136 +22% 80 65 65 FY20* FY21 FY20* FY21 Home Visits Revenue as a % of Total B2C business increased from Non-Covid Home Vi
Slide 20: Digital engagement driving huge growth in brand equity
Digital engagement driving huge growth in brand equity Business Impact 15x increase in Faster Growth in website traffic Home Visit revenue 45MN Audience reach via Digital Mediums 10X increase in call ~Rs. 80 Crs. Revenue volume due to in FY21 through Digital strategy is playing Digital Campaigns lea
Slide 21: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q4FY21 Q4FY20 Y-o-Y Q3FY21 Q-o-Q FY21 FY20 Y-o-Y Revenue from Operations 291.8 206.1 42% 274.8 6% 997.8 855.5 17% Cost of Raw Material Consumed 70.2 50.9 69.3 252.2 204.1 Laboratory Testing Charges 1.6 2.6 0.9 5.4 6.9 Employee Expenses 48.7
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Mar-21 Mar-20 Equity & Liabilities (Rs. Crs.) Mar-21 Mar-20 Non-current assets 396.0 355.2 Equity 708.1 525.2 Property, Plant and Equipment 115.1 121.2 Equity Share capital 10.2 10.1 ROU Assets 103.1 59.7 Other equity 696.4 513.4 Goodwill 90.3 90.3 Non Co
Slide 23: Consolidated Cash Flow
Consolidated Cash Flow Cash Flow Statement (Rs. Crs) FY21 FY20 Profit Before Tax 244.3 168.7 Adjustments for Depreciation and other items 76.9 82.7 Operating profit before working capital changes 321.2 251.5 Changes in working capital -15.3 28.0 Cash generated from operations 305.9 279.4 Direct taxe
Slide 24: CSR Activities 2020-21
CSR Activities 2020-21 Nutrition Box Project ✓ Nutrition boxes delivered to doctors and healthcare workers posted in COVID Care Centers, Municipal Corporations and COVID Hospitals by Metropolis with the help of WE Foundation Covid Testing Projects ✓ Project Ummeed – In association with Citibank & CI
Slide 25: Metropolis MD awarded EY Entrepreneur of the Year
Metropolis MD awarded EY Entrepreneur of the Year in Healthcare Category You cannot be an entrepreneur if you are not comfortable with uncertainty. Such uncertainties help in getting you trained on how to operate during crisis situations. It is an honor to receive recognition for the all the efforts
Slide 26: Acquisition of Hitech Diagnostics
Acquisition of Hitech Diagnostics
Slide 27: Metropolis to Acquire Hitech Diagnostics
Metropolis to Acquire Hitech Diagnostics About Hitech Diagnostics Established in 1986, Hitech Diagnostic Centre is a well-known Diagnostics laboratory chain in the South India market with a network of 31 laboratories including 3 NABL and ICMR accredited laboratories and 68 collection centres strateg
Slide 28: Contours of the Deal
Contours of the Deal Metropolis to acquire Hitech Diagnostics Centre Metropolis will acquire 100% equity of Hitech Diagnostic Centre Pvt. Ltd. in a combination of 01 cash and stock deal. Acquisition is expected to be completed within 3 months. The entity is a debt free company. Cash consideration wi
Slide 29: Strategic Rationale of the Acquisition
Strategic Rationale of the Acquisition Acquisition of Hitech Diagnostics will lead Metropolis to… Strengthening the Leadership Position With the acquisition of Hitech Diagnostics, Metropolis will strengthen its position as 2nd largest Diagnostics company in India and largest brand in South and West
Slide 30: FY22 and beyond
FY22 and beyond... TRANSFORMING FOR A NEW T@MORROW
Slide 31: Way Forward for FY22 and beyond
Way Forward for FY22 and beyond… Add 90 labs and 1,800 service centers over next 3 years and strengthen our leadership Network Expansion position in existing geographies and build Metropolis brand in new geographies Expand Home Visit coverage to 100 locations in 1 year and cover 200 locations within
Slide 32: 1. Network Expansion Plan
1. Network Expansion Plan Metropolis Network Expansion Plan Laboratory Network Service Network +72% +70% 215 4,355 90 1,800 125 2,555 FY21 Addition FY24E FY21 Addition FY24E over 3 years over 3 years ✓ Expand to existing & newer locations – Aim to expand the service network to existing locations to
Slide 33: 2. Driving growth via digitally driven, asset-light home-visit segment
2. Driving growth via digitally driven, asset-light home-visit segment Asset Light Digital demand Rapid scale up via technology drive generation processes + 3rd party network Capturing Changing Demand 1 Integrated CRM to Covid has brought a strong shift in Captured via “At-home” consumption of provi
Slide 34: 3. Deepening our digital touch points and capability
3. Deepening our digital touch points and capability throughout our value chain Digitally engaging Scaling up Digitizing distribution & logistics: Digital Customer Engagement: customers and operational Launched Unified Patient Launching an end-to-end online partners capabilities Information System l
Slide 35: 4. Levers for Margin Improvement
4. Levers for Margin Improvement Increased Utilization and Product Mix Higher utilization of Labs and increase in patient visits coupled with superior product mix 01 Increased Home Visits Cost Efficiency Initiatives Increase Home Visits revenue with focused Encouraging innovation and critical thinki
Slide 36: Overview
Overview TRANSFORMING FOR A NEW T@MORROW
Slide 37: We are Metropolis: The Pathology Specialist
We are Metropolis: The Pathology Specialist To be a respected healthcare brand trusted by clinicians, patients and stakeholders. Positively impact lives of patients Vision in their most anxious times and turn their anxiety in to assurance. Helping people stay healthy, by accurately revealing their 3
Slide 38: Journey to Leadership Position
Journey to Leadership Position ✓ First Referral Laboratory Set- ✓ Ameera Shah takes charge ✓ Secondary transaction by ✓ Exit of Warburg Pincus, ✓ Strong Thrust on Retail up by Founder & Chairman Dr. Foxcreek Investment Limited management control by frontend Expansion ✓ First major acquisition - Sush
Slide 39: Three decades of Delivering Value to Stakeholders
Three decades of Delivering Value to Stakeholders Leadership Position Across Industry METROPOLIS Focus Area ACCREDITATION CUSTOMER & QUALITY EXPERIENCE ROCE SPECIALITY SCORES SCORE BUSINESS INCREASED INFRASTRUCTURE PRODUCTIVITY REVENUE PER REALISATION PER TEST MENU OF YOUNG PATIENT PATIENT NETWORK 3
Slide 40: Key Drivers for Growth
Key Drivers for Growth 01 Industry Growth 05 Expansion Plan 02 Value Chain 06 Quality 03 Business Model 07 People 04 Service Network 08 Digital Transformation 39
Slide 41: 1a. Diagnostic Industry Poised to grow
1a. Diagnostic Industry Poised to grow… Indian Healthcare Industry Size of Indian Diagnostics Market Indian Diagnostics Industry Breakup Source – IIFL Diagnostics Report (in Billion Rs.) 6.0% +11.6% 924 9.0% 4.0% Healthcare Delivery - Hospitals 776 42% Pharma Pathology +16.4% 596 13.0% Medical Devic
Slide 42: 1b. Top players to continue to acquire market share
1b. Top players to continue to acquire market share of standalone centers Brand Awareness Increased brand awareness amongst patients and customers towards quality, reliability and test accuracy Service + Scale Large Test menu Large Test menu by organized diagnostics chains Factors leading Consolidat
Slide 43: 2. Presence in key pockets of Value Chain
2.Presence in key pockets of Value Chain Diagnostic Industry - Fragmented Routine Test Metropolis Focus Highly Fragmented Market Low Quality Standard Majority Diagnostic Players Technician + Run Lab Low on Technical Qualifications & Moderate Competition Presence across Accreditations (99.9% labs rem
Slide 44: 3. Hub & Spoke Model to scale efficiently
3. Hub & Spoke Model to scale efficiently Home Collection Global Reference Lab (GRL) Individual Patient (B2C) Wholesale (B2B) RRL / Satellite Lab Express Lab Third Party Lab / Hospitals / ARCs Collection Patient Centres Patient Leverage Widespread Delivery to our Enhances Collection of Greater netwo
Slide 45: 4. Patient Centric Network
4.Patient Centric Network Global and More than ~4,000 Present in 19 States 35+ Years National Over 10,000 Patient Test’s & Profiles & 210 cities Quality Touch Points of Credible Operations Accreditations Why Metropolis ? Collection ✓ Conclusive Diagnosis with Large Centres Pics test Menu backed by H
Slide 46: 5. Asset Lite Expansion Plan
5. Asset Lite Expansion Plan Asset Light Model Network Expansion Strategy Doctor APSC/ Lab on ✓ Focus on Asset Light Model to achieve Geographic Expansion with Bleeding DAPSC Lease High Scalability Point (DBP) ✓ The A-PSC and D-APSC Model allows us to grow our revenues by providing management and br
Slide 47: 6a. Quality in Core
6a. Quality in Core Quality Scores of 98.5% in 2018-19 by College Quality protocols following global standards of American Pathology 99.9% of industry labs remain un-accredited with lack of minimum standards in the industry Large Investments in Focus on Governance Information and rigorous audit Tech
Slide 48: 6b. Globally Compliant Quality Standards
6b. Globally Compliant Quality Standards No. of Audits Conducted by PAC Team “Global Lab Accreditations” FY 17-18 18-19 19-20 20-21 665 1,312 1057 583 ✓ PAC Team: Special Pre Analytical Care Team constituted as part of the Quality Assurance Team ✓ This team conducts thorough internal audits as per N
Slide 49: 7. People are our greatest asset
7. People are our greatest asset ✓ New HR Management System for ✓ Strong culture equal opportunity ✓ Full Fledged Learning Management automated processes improving workplace System that is used for daily training productivity and ensuring availability of across the Company. employee data on demand ✓
Slide 50: 8. Leveraging IT for Competitive Advantage
8. Leveraging IT for Competitive Advantage 1 2 3 4 Improving Business revenue Improved Operational Improve Customer Cost Saving & Optimization generation capabilities Efficiency Experience ✓ Zero Data Loss; 100% data ✓ IBM Watson Campaign Automation replication in remote location ✓ Mobility Applicat
Slide 51: 8a. Digital Transformation to improve efficiency
8a. Digital Transformation to improve efficiency 1 Standardization Achieve standardization across 2 Reduced Errors Reduce incidence of errors due to human intervention our operations Patients & Customers 3 Technical Operations Provide convenience to our 5 Monitor Technical Operations patients and cu
Slide 52: Mobile App Launched with features enabling ease of access
Mobile App Launched with features enabling ease of access Expert TruHealth Risk Assessment TruHRA Customized Check-ups Booking Appointments See, Share & Store Fitness Tracker Reports Inner Health Tracking Medication Tracker Parameters Doctor’s, Hospital’s & Chat with Experts Metropolis nearby Google
Slide 53: Future Strategy
Future Strategy 01 Increase Services 02 Increase Scale 52
Slide 54: Customer Centricity: In everything we do
Customer Centricity: In everything we do 01 02 03 04 Easy to Interpret Test Sample Collection from Conclusive Diagnosis Digital Access Report Doorstep We also have a policy of ensuring We have developed a Mobile Conclusive Diagnosis to our Application We offer our patients a Detailed We have increas
Slide 55: Sustainable Growth across Network
Sustainable Growth across Network Network of 210 Cities Criteria % of Revenue for FY21 (Total Business) Strategy ✓ Increasing productivity of Collection Centers ✓ Enhancing our Laboratory Capacity and Test Menu by adding Latest Machines and Technology ✓ High Potential Market Focus Cities ✓ Expanding
Slide 56: Increase B2C sales mix
Focus on Profitable B2C Business Increase B2C sales mix Deeper Network Strengthen Productivity of Wellness initiatives Penetration Metropolis Brand existing young network for consumers Deeper centre penetration Expand Branded third- Increase number of referring Creating an easy and engaging in Focus
Slide 57: Growing Inorganically - A Win-Win Strategy
Growing Inorganically– A Win-Win Strategy Build Industry Best practices Introducing Standardized Machines and SOPs in a phased manner resulting in efficiency and quality enhancement Access to Metropolis Network Providing acquired entities access to Metropolis Sales and Marketing Network to improve t
Slide 58: Successful Track Record of Inorganic Strategy: 23 Acquisitions in 16 years
Successful Track Record of Inorganic Strategy : 23 Acquisitions in 16 years Revenue at the time of Few of the Acquired Companies Year of Acquisition Location Revenue for FY21 acquisition Sudharma Metropolis Health Services 2003 Kerala Rs. 1.8 Crores Rs. 44.9 Crores Private Limited Golwilkar Metropol
Slide 59: Plenty of Opportunities for Growth
Plenty of Opportunities for Growth… Growing our offering of Test Packages to Increase Revenue Test Packages Metrics. Customized packages to Institutional Customers Expansion and Personalized Packages to Individual Patients are key Leverage our vast capabilities in Molecular Diagnostics, Aggressive N
Slide 60: Historical Financial & Operational Performance
Historical Financial & Operational Performance
Slide 61: Better than industry growth
Better than industry growth Revenue (In Rs. Crs.) Bolstering Growth in Wellness Segment Metropolis Wellness revenue contribution for +16% 998 Metropolis is 6% in FY21 856 760 644 545 This market is expected to grow at a CAGR of 20% over next 3 financial years (Frost & Sullivan) FY17 FY18 FY19 FY20 F
Slide 62: Well growing B2C Mix
Well growing B2C Mix Retail contribution in Focus Cities (Non-Covid) to Total Revenue 56% 58% 52% 48% 45% Primary Strategy of the Company is to increase the Retail share in focus cities to 65% FY17 FY18 FY19 FY20 FY21 Chart shows B2C contribution over the years in focus cities; Mumbai, Chennai, Bang
Slide 63: Financial Highlights
Financial Highlights Revenue (In Rs. Crs.) Reported EBITDA (In Rs. Crs.) ROCE (%) +16.3% 998 288 +16.8% 46.5% 856 42.8% 760 232 40.0% 40.9% 206 38.3% 644 173 545 155 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA (%) Reported PAT (In Rs. Crs.) ROE (%) 28.4% 28.9% 1
Slide 64: Profit & Loss Statement
Profit & Loss Statement Profit & Loss (Rs. Crs.) FY21 FY20 FY19 FY18 FY17 Revenue from Operations 997.8 855.5 760.1 643.6 544.7 Cost of Material Consumed 252.2 204.1 173.5 145.9 135.1 Laboratory testing charges 5.4 6.9 5.6 5.7 2.5 Gross Profit 740.1 644.5 581.0 492.0 407.1 Gross Profit (%) 74.18% 75
Slide 65: Balance Sheet
Balance Sheet Assets (Rs. Crs.) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Equity & Liabilities (Rs. Crs.) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Non-current assets 396.0 355.2 247.9 230.1 230.1 708.1 Equity 525.2 420.0 429.1 344.1 Property, Plant and Equipment 115.1 121.2 116.7 112.3 105.2 Equity Share capital
Slide 66: Board of Directors and Management Team
Board of Directors and Management Team
Slide 67: Board of Directors
Board of Directors Dr. Sushil Kanubhai Shah Ameera Sushil Shah Chairman & Executive Director Managing Director Holds a bachelor’s degree in Medicine and Surgery Holds a bachelor’s degree in Business Administration and a degree of Doctor of Medicine in Pathology from the University of Texas and also
Slide 68: Management Team
Management Team Vijender Singh Dr. Nilesh Shah Chief Executive Officer President and Chief of Science & Innovation Holds a bachelor’s degree in Science from Kurukshetra Holds a master’s degree in Engineering from University of University and completed an Executive Education Mumbai and a Diploma in M
Slide 69: Recent Awards and Accolades
Recent Awards and Accolades Period Particulars March 2021 Our MD, Ms. Ameera Shah has been EY Entrepreneur of the Year in Life Science and Healthcare Our CFO, Mr. Rakesh Agarwal was awarded at the 11th Annual CFO Awards for his exceptional March 2021 contribution to the world of finance Metropolis H
Slide 70: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Metropolis Healthcare Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L73100MH2000PLC192798 CIN - U74140MH2010PTC204285 Mr. Rakesh Agarwal - CFO Mr. Shogun Jain / Mr. Shrenik Shah Email Id – rakesh.agarwal@metropolisindi
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