Shalby Ltd. · NSE:SHALBY
Shalby — Q4 FY2020 Earnings Presentation
43 slides from Shalby's earnings presentation, Jun 15, 2020
Slide 1: Cover letter to stock exchanges
Ml" F1-SPECIP' - .iOSPITALS - June 15,2020 Shalby/SE/2020-21/22 The Listing Department Corporate Service Department National Stock Exchange of India Ltd BSE Limited Mumbai 400 051. Mumbai 400 001. Scrip Code : SHALBY Scrip Code: 540797 Through : https://www.connect2nse.com/LISTING/ Through : http://
Slide 2: Investor Presentation Q4 FY2020
Investor Presentation Q4 FY2020 SHALBY LIMITED (BSE CODE: 540797 I SHALBY, NSE CODE: SHALBY) A leader in Joint Replacement surgeries in India with an established chain of multi-specialty tertiary care hospitals.
Slide 3: Disclaimer
DISCLAIMER No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certai
Slide 4: Content
CONTENT 01 CORPORATE FACTS 02 OPERATIONAL PERFORMANCE 03 FINANCIAL PERFORMANCE 04 OTHER KEY UPDATES www.shalby.org 3
Slide 5: Corporate Facts
CORPORATE FACTS www.shalby.org 4
Slide 6: Recent Recognition: Best Hospital For Patient Care Award
RECENT RECOGNITION Shalby Bestowed With The Best Hospital For Patient Care Award Shalby Multi‐specialty Hospitals has been bestowed with “The Best Hospital for Patient Care (West)” Award by ET Healthworld 2020 at a function held in New Delhi, on March 13, 2020. “ET Healhworld.com Hospital Awards” is
Slide 7: Recent Recognition
RECENT RECOGNITION www.shalby.org 6
Slide 8: We value each and every human life placed in our hands
“ We value each and every human life placed in our hands and constantly work towards meeting the expectations of our customers and stakeholders by raising the standards of our service deliveries, every time. ” Shalbyites
Slide 9: Corporate Philosophy: Vision, Mission and Core Values
CORPORATE PHILOSOPHY VISION MISSION Exceeding expectation Leveraging global leadership in Joint from health replacement to establish multi-specialty care across geographies ELITE :OUR CORE VALUES EXCELLNACE INTEGRITY EMPATHY We work with We always do the We do everything an intent to right thing, ev
Slide 10: Historic Evolution
HISTORIC EVOLUTION Year (CY) 1994 2004 2007 2011 2015 2017 2019 2,012 2,012 Bed Capacity 1,070 594 6 27 228 11 11 6 # of Hospitals 4 1 1 2 Started Revenue Operationalize Acquired Commissioned Bed capacity Started professional growth – 100 d First Multi Shalby Vapi Shalby Jabalpur grown
Slide 11: Corporate Facts
CORPORATE FACTS 11 Hospitals 60% Operating bed to total bed capacity 2,012 Total Bed Capacity 41% Bed Occupancy (based on 985 census beds) 1,200 Operational beds 31% 12 year CAGR Revenue 4,000+ Human Resource (Doctor + Staff) 36% 12 year CAGR EBITDA 1,300+ Surgeries per month 29,000+ Patients served
Slide 12: Organisation Structure
ORGANISATION STRUCTURE ¾ CORPORATE STRUCTURE ¾ UNIT LEVEL STRUCTURE Unit CAO Chairman & Managing Director Clinical Applications Corporate development Accounts President Group COO CFO CHRO CIO VP Projects HR Hospitality Cluster COO CORPORATE SUB-FUNCTIONS IT/Systems Billing Unit CAO Pharmacy Admin/Op
Slide 13: Eminent Leadership
EMINENT LEADERSHIP KEY ACHIEVEMENTS: Over two and a half decades of professional work experience across UK, USA and India. Serving as Director, Department of Knee Replacement at Shalby Hospitals since 1993 Dr. Shah innovated zero ‘0’ Technique in 2011 and was awarded the Double Helical Award 201
Slide 14: Shareholding Pattern as on 31st Mar 2020
SHAREHOLDING PATTERN AS ON 31st MAR 2020 Promoter & promoter group 79.44% Residential Individual 8.60% Bodies corporate 5.39% Foreign portfolio investors 3.68% Employee Trust 0.93% HUF 0.67% Alternative investment trust 0.58% Non-Resident individuals 0.47% others 0.17% Bank 0.08% www.shalby.org 13
Slide 15: Our Presence
OUR PRESENCE Existing 11 Units (2012 beds) Upcoming 3 Units (388 beds) Network of 37 Outpatient Clinics across 11 states in India ¾ National Presence ¾ International Presence (in Africa) PUNJAB Mohali – 145 beds RAJASTHAN Sudan (1) Addis Ababa (1) Jaipur – 237 beds Eldoret Kisumu Nairobi (1) Rwa
Slide 16: Operational Performance
OPERATIONAL PERFORMANCE www.shalby.org 15
Slide 17: Performance Synopsis – Q4 FY20
PERFORMANCE SYNOPSIS – Q4 FY 20 Particulars Q4 FY20 Q4 FY19 Q3 FY20 Y-O-Y Growth (%) Total Revenue (INR million) 1,160.37 1,156.40 1,231.55 0.34% Total EBITDA (INR million) 129.16 172.31 243.07 -25.04% EBITDA Margin (%) 11.13% 14.90% 19.74% Bed Capacity (Nos.) 2,012 2,012 2,012 - Operational Beds (N
Slide 18: IP, OP, Surgeries – Quarterly Trend
IP, OP, SURGERIES – QUARTERLY TREND IP Count (Including Day Care) OP Count Surgeries Count 17,408 87,575 6,146 16,155 83,187 15,316 15,539 4,893 4,985 13,656 80,501 4,738 6,726 6,356 2,921 3,966 5,701 6,644 4,945 77,140 74,333 2,685 2,655 2,360 2,262 9,799 10,682 9,838 8,672 8,711 3,225 2,208 2,330
Slide 19: IP, OP, Surgeries – Maturity Wise Quarterly Trend
IP, OP, SURGERIES – MATURITY WISE QUARTERLY TREND IP Count Day Care Count 3,414 5,153 3,198 2,603 2,521 2,378 2,660 3,477 807 988 564 455 293 316 120 25 6+ Years 4‐6 Years 2‐4 Years <2 Years 6+ Years 4‐6 Years 2‐4 Years <2 Years IP Count Q4 ‐ FY 19 IP Count Q4 ‐ FY 20 Daycare Count Q4 ‐ FY 19 Daycar
Slide 20: Financial Performance
FINANCIAL PERFORMANCE www.shalby.org 19
Slide 21: Key Financial Parameters – Q4 FY20
KEY FINANCIAL PARAMETERS – Q4 FY20 Revenue (INR Mn) EBITDA (INR Mn) PBT (INR Mn) PAT (INR Mn) 33.89 1,160.37 1,156.40 172.31 68.90 0.34% -25.04% 129.16 -67.79% Q4 FY19 Q4 FY20 22.19 -597.55% - Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 168.62 ARPOB (INR/Day) ALOS (Excluding Daycare) 30,813 31,2
Slide 22: Financial Highlights – Q4 FY20
FINANCIAL HIGHLIGHTS – Q4 FY 20 (Values in INR Mn) % of % of % of Y-O-Y Particulars Q4 FY20 Q4 FY19 Q3 FY20 Revenue Revenue Revenue Growth (%) Revenue from Operations 1,055.11 1,133.75 1,207.70 -6.94% Other Income 105.26 22.65 23.84 364.72% Total Income 1,160.37 1,156.40 1,231.55 0.34% Expenses Mate
Slide 23: Revenue Mix – Q4 FY19 Vs Q4 FY20
REVENUE MIX – Q4 FY19 Vs Q4 FY20 7% 10% 6% 12% Arthoplasty Cardiac Science 9% 8% SPECIALITY Critical Care & General Medicine 4% MIX (Revenue) 6% Nephrology 4% Q4 FY19 5% Q4 FY20 Neurology 42% 12% 43% Oncology 10% Other Ortho 11% 11% Others 22% 5% 26% 2% PAYER MIX (Revenue) Self Pay Corporate Governm
Slide 24: Maturity Profile – Q4 FY19
MATURITY PROFILE – Q4 FY19 ¾OPERATIONAL PARAMETERS Buckets Units # Parameters 6 Years+ 4-6 Years 2-4 Years <2 Years Total 6+ Years Sg , Krishna , Vapi , Vijay 1 Total Bed Capacity 594 476 747 145 1,962 4-6 Years Jabalpur, Indore 2 Operational Beds 382 361 275 34 1,102* 2-4 Years Jaipur , Surat , Nar
Slide 25: Maturity Profile – Q4 FY20
MATURITY PROFILE – Q4 FY20 ¾OPERATIONAL PARAMETERS Buckets Units # Parameters 6 Years+ 4-6 Years 2-4 Years <2 Years Total 6+ Years Sg , Krishna , Vapi , Vijay 1 Total Bed Capacity 613 488 766 145 2,012 4-6 Years Jabalpur, Indore 2 Operational Beds 437 330 324 73 1,200* 2-4 Years Jaipur , Surat , Nar
Slide 26: Yearly Trend
YEARLY TREND www.shalby.org 25
Slide 27: Performance Synopsis – FY20
PERFORMANCE SYNOPSIS – FY 20 Year Ended Year Ended Particulars Growth 31-03-2020 31-03-2019 Total Revenue (INR million) 5,016.28 4,717.79 6.33% Total EBITDA (INR million) 992.47 917.98 8.11% EBITDA Margin (%) 19.78% 19.46% Bed Capacity (Nos.) 2,012 2,012 - Operational Beds (Nos.) 1,200 1,102 8.89% A
Slide 28: Key Financial Parameters – FY20
KEY FINANCIAL PARAMETERS – FY20 Revenue (INR Mn) EBITDA (INR Mn) PBT (INR Mn) PAT (INR Mn) 5,016.28 992.47 570.28 321.03 4,717.79 6.33% 8.11% 12.42% -12.87% 507.26 917.98 279.71 FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 ARPOB (INR/Day) ALOS (Excluding Daycare) 31,296 30,457 4.22 4.15 -2.68% 1.
Slide 29: Financial Highlights – FY20
FINANCIAL HIGHLIGHTS – FY 20 (Values in INR Mn) Year Ended Year Ended Particulars % of Revenue % of Revenue Growth 31-03-2020 31-03-2019 Revenue from Operations 4,838.86 4,624.11 4.64% Other Income 177.42 93.68 89.39% Total Income 5,016.28 4,717.79 6.33% Expenses Materials & Consumables 1,325.24 26.
Slide 30: Revenue Mix – FY19 Vs FY20
REVENUE MIX – FY19 Vs FY20 Arthoplasty 7% 10% 6% 11% Cardiac Science 8% 9% SPECIALITY Critical Care & General Medicine 4% 5% MIX (Revenue) Nephrology 4% 4% Neurology FY 19 FY 20 11% 45% 45% Oncology 10% Other Ortho 11% 10% Others 15% 5% 23% 2% PAYER Self Pay MIX (Revenue) Corporate Government 20% TP
Slide 31: Maturity Profile – FY19
MATURITY PROFILE – FY19 ¾OPERATIONAL PARAMETERS Buckets Units # Parameters 6 Years+ 4-6 Years 2-4 Years <2 Years Total 6+ Years Sg , Krishna , Vapi , Vijay 1 Total Bed Capacity 594 476 747 145 1,962 2 Operational Beds 382 361 275 34 1,102* 4-6 Years Jabalpur, Indore 2-4 Years Jaipur , Surat , Naroda
Slide 32: Maturity Profile – FY20
MATURITY PROFILE – FY20 ¾OPERATIONAL PARAMETERS Buckets Units # Parameters 6 Years+ 4-6 Years 2-4 Years <2 Years Total 6+ Years Sg , Krishna , Vapi , Vijay 1 Total Bed Capacity 613 488 766 145 2,012 4-6 Years Jabalpur, Indore 2 Operational Beds 437 330 324 73 1,200* 2-4 Years Jaipur , Surat , Naroda
Slide 33: Maturity Profile – Operational Parameters
MATURITY PROFILE – Operational Parameters FY 20 Maturity Profile IP Count OP Count Surgery Count 6 Years + 17,119 1,27,191 9,724 4-6 Years 13,033 85,972 4,246 2-4 Years 30,838 92,503 5,117 <2 Years 1,768 19,930 748 Total 62,758 3,25,596 19,835 www.shalby.org 32
Slide 34: Maturity Profile – with Revenue Mix
MATURITY PROFILE – FY 20 – with Revenue Mix FY 19 Maturity Profile IP Count OP Count Surgery Count 6 Years + 17,019 1,15,093 10,792 4-6 Years 13,640 91,021 4,193 2-4 Years 24,124 73,666 4,415 <2 Years 1,202 16,417 508 Total 55,985 2,96,197 19,908 www.shalby.org 33
Slide 35: Other Key Updates
OTHER KEY UPDATES www.shalby.org 34
Slide 36: Clinical Highlights
CLINICAL HIGHLIGHTS Sushrut Parikh, New York, USA Surgery: Bilateral Total Knee Replacement Patient was in sever pain since last 10 years as he had problem in bending his leg. After seeking second opinion from USA & Mumbai, he chose to follow Dr. Vikram Shah’s advice for some pre-operative procedure
Slide 37: Event Highlights
Event HIGHLIGHTS Health Privilege Card Launched for Senior Citizens by Shalby Hospitals Krishna Shalby Hospitals, in association with Vayvandana Senior Citizen Association, Ahmedabad organized a mega event with” Health Talk and the launch of Health Privilege Card” for Senior Citizens, on February 10
Slide 38: Business Model – Features Optimising Capex and Opex
BUSINESS MODEL – FEATURES OPTIMISING CAPEX AND OPEX Optimize capex Operational Lowest Capex and Opex per planning with Efficiency due to bed due to optimal use of Inhouse projects better capex real-estate team planning Equipment planning and utilities planning In-house planning teams Focus o
Slide 39: Typical Concept of 200 Bed Capacity Set-up
TYPICAL CONCEPT OF 200 (±20%) BED CAPACITY SET-UP Facilities 10-15 kms away Local and Natural Footfalls from 4-5 kms radius helps to fill up ~50% beds Balance ~50% – patients come in the name of doctors reducing thereby dependency on star doctors thus controlling doctor payout % www.shalby.org 38
Slide 40: Our Business Model & Growth Drivers
OUR BUSINESS MODEL & GROWTH DRIVERS Unique Revenue Sharing Pioneer in Joint Model Replacements in the country, best positioned to capitalize on it Continue to gain Opportunities traction within Fully within Homecare Oncology and Owned No fixed No Huge scope for Neurology security rental deposit orga
Slide 41: Role of OPD for Expansion
ROLE OF OPD FOR EXPANSION Simultaneously hire local doctors Patients visit our and train them at clinics across Ahmedabad who India and abroad conduct OPDs Punjab in and around So we can start We analyze that city the facility with patient trends and low branding accordingly decide budget but high w
Slide 42: Silver Linings in the Healthcare Segment
SILVER LININGS IN THE HEALTHCARE SEGMENT Ever increasing total healthcare spending in India has opened many doors for healthcare service providers in India. Total knee replacement space is also expected to grow by leaps and bounds in years to come. Total Healthcare Spending in India (US$ m) 200,000
Slide 43: Thank You
THANK YOU SHALBY LIMITED I Regd Off: Opp. Karnavati Club, S.G. Road, Ahmedabad – 380015, Gujarat, India. Phone: 079 4020 3000 Fax: +91 79 4020 3120 | Website: www.shalby.org | CIN: L85110GJ2004PLC044667 www.shalby.org