Shalby Ltd. · NSE:SHALBY
Shalby — Q3 FY2023 Earnings Presentation
37 slides from Shalby's earnings presentation, Jan 17, 2023
Slide 1: Exchange filing cover letter for investor presentation
January 17, 2023 Shalby/SE/2022-23/97 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://neaps.nseindia.com/NEWLISTINGCORP/ Through : http://listing.bseindia.com
Slide 2: Investor Presentation Q3 FY2023
Investor Presentation Q3 FY2023
Slide 3: Agenda
AGENDA 01 SHALBY GROUP QUARTERLY PERFORMANCE 02 HOSPITAL BUSINESS QUARTERLY PERFORMANCE 03 FRANCHISE BUSINESS QUARTERLY PERFORMANCE 04 SHALBY ACADEMY QUARTERLY PERFORMANCE 05 IMPLANT BUSINESS QUARTERLY PERFORMANCE 2
Slide 4: Q3 FY23 Snapshot
Q3 FY23 Snapshot Financial Highlights Consolidated Revenue at INR 2,067 mn v/s INR 1,652 mn in Q3 FY22, growth of 25.1% YoY Hospital business Revenue at INR 1,798 mn grew by 17.4 % YoY from 1,531 mn in Q3 FY22 Implant business Revenue at INR 228 mn grew by 153% YoY from INR 90 mn in Q3 FY22 Consolid
Slide 5: Consolidated Performance Highlights – Q3 FY23
Consolidated Performance Highlights – Q3 FY23 All figures in INR Million Revenue EBITDA Profile Gross 1,253 380 Borrowings 2,067 310 1,652 Cash & Cash 1,628 Equivalents1 Net Cash/(Debt) 376 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Up 25.1% YoY Up 22.5%YoY ROCE2 13.9% PBT (Before Exceptional Items) PAT Debt/E
Slide 6: Consolidated Profit & Loss – Q3 FY23
Consolidated Profit & Loss – Q3 FY23 Particulars (in INR Millions) Q3 FY23 Q3 FY22 Y-o-Y Growth Revenue 2,067 1,652 25.1% EBITDA 380 310 22.5% EBITDA Margin % 18.4% 18.8% PBT (before Exceptional Items) 235 182 29.3% Exceptional Items 0.0 (44) (100.0)% PBT 235 138 71.0% PBT Margin % 11.4% 11.0% PAT 1
Slide 7: Diversification in Revenue Mix
Business Verticals Healthcare Conglomerate Building An Integrated Orthopedic Solutions Ecosystem Multi-Specialty Single-Specialty Implant Shalby is a Leader in Joint Shalby Orthopedics Centre of Shalby Advanced Replacement with 15%1 Market Share Excellence and Franchise Model Technologies, Inc. Syne
Slide 8: A Legend and Visionary Doctorpreneur behind Shalby
A Legend and Visionary Doctorpreneur behind Shalby Dr Vikram I. Shah, the Founder of Shalby Ltd, is a world-renowned Joint Replacement Surgeon who innovated “Zero Technique” that revolutionized Joint Replacement Surgery. A visionary entrepreneur, he transformed Shalby from a 6 bedded hospital in 199
Slide 9: Hospital Business Performance (Q3 FY23)
HOSPITAL BUSINESS Performance (Q3 FY23) 8
Slide 10: The Largest Joint Replacement Centre In The World
Hospital Business Highlights Q3 FY23 Key Facts Operational Performance Q3 Q3 YoY The Largest Joint Replacement Centre In The World Particulars FY23 FY22 Growth 13 10 1200+ In-Patient Count (Nos.) 11,713 10,432 12.3% Hospital Cities in Operational 10 Multi-Specialty1 6 states Beds 3 Single-Specialty2
Slide 11: Hospital Performance Summary
Hospital Performance Summary Shalby Continued to deliver high double-digit growth over the last 2 decades Revenue EBITDA 6,598 1,426 5,438 1,251 3,284 778 439 1,685 194 22 FY 2007 FY 2012 FY 2017 FY 2022 9M FY23 FY 2007 FY 2012 FY 2017 FY 2022 9M FY23 Note: Above all numbers are on Standalone basis
Slide 12: Hospital Business Highlights Q3 FY23
Hospital Business Highlights Q3 FY23 Financial Performance All Figures are in INR million Revenue EBITDA Profile International Revenue 1,798 386 17.4% 23.5% INR 25 mn 58% YoY 312 YoY YoY 1,531 20.4% 21.5% Homecare revenue INR 26.5 mn 42% YoY Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Profit Before Tax1 Profit
Slide 13: Hospital Business Highlights Q3 FY23 – Specialty Revenue Mix
Hospital Business Highlights Q3 FY23 Global Leader in Arthroplasty with increasing focus on Multi Specialty Specialty Revenue Mix : Q3 FY2023 Specialty Revenue Mix : Q3 FY2022 Others, 13% Nephrology, Others, 11% 4% Nephrology, Arthroplasty, Arthroplasty, 3% 38% Neurology, 43% 5% Neurology, 6% Orthop
Slide 14: Surgery Count and Y-o-Y Growth
Hospital Business Highlights Q3 FY23 Surgery Count and Y-o-Y Growth Arthroplasty Orthopedic1 3,297 23% 831 24% Onco Surgery General & Cosmetic Surgery Surgery in other Specialties are growing by high 380 58% 641 18% double digit Cardiac Surgery Nephro & Urology 194 -3% 484 31% Notes: 13 1. Orthopedi
Slide 15: Hospital Business Performance Q3 FY2023
Hospital Business Performance Q3 FY2023 Profit & Loss Statement Well Capitalized Balance Sheet to Fund the Growth Capex Plans Particulars (in INR Millions) Q3 FY23 Q3 FY22 YoY Growth Gross 282 Borrowings Revenue 1,798 1,531 17.4% Cash & Cash 1,506 EBITDA 386 312 23.5% Equivalents1 EBITDA Margin % 21
Slide 16: EBITDA Profile- Q3 FY23
EBITDA Profile- Q3 FY23 Total Revenue to EBITDA Consistent Healthy double digit Operating Margin 20.4% 21.5% EBITDA % 6.9% 7.8% Other Expenses % 12.7% 12.0% 1.6% 1.2% Employee Benefit Expenses % 58.4% 57.4% Purchase and Change in Inventory % Operative and Other Expenses % Q3 FY22 Q3 FY23 15
Slide 17: Clinical Excellence and Initiatives Across Specialties during Q3 FY23
Clinical Excellence and Initiatives Across Specialties during Q3 FY23 ▪ An obese patient with severe heart disease that needed implanting Cardiac Defibrillator goes under Total Knee Replacement successfully. ▪ A pre-term baby delivered at 27th week with a weight of just 800 gm who was in a critical
Slide 18: Homecare Business Highlights Q3 FY23
Homecare Business Highlights Q3 FY23 24x7 Homecare Services 20,000+ patients Achieved revenue of Presence in 8 cities1 with served during INR 70 mn in all comprehensive Industry Growth Drivers 9M FY23 9M FY23 services @Home Provide Quality Services Through High-end digital systems Shalby Homecare Co
Slide 19: Q3 FY2023 Hospital Performance (Maturity wise)
Q3 FY2023 Hospital Performance (Maturity wise) All hospitals, at different maturity stages, continues to deliver steady performance Hospital > 10 Years Hospital < 10 Years 391 869 Operational Beds Operational Beds ₹ 702 mn 40% ₹ 1,033 mn 60% Revenue Revenue Revenue Revenue from operation Contributio
Slide 20: Key Focus Areas For Future
Key Focus Areas For Future Global Leader in Joint Replacement with diversification in other specialties • Aiming for 15k+ joint replacements annually • Ongoing diversification with Cardiac Science, Oncology, Neuro-science, Critical Care and General Medicine Prudent Capital Allocation • Sustainable C
Slide 21: Hospital Journey & Further Expansion
Hospital Journey & Further Expansion Expansion in Pipeline Mumbai Bed Capacity: 175 Jaipur Shalby, Jaipur (237 beds) Business Model: Revenue Sharing O&M Period: 30 + 30 years Naroda Shalby, Ahmedabad (267 beds) Operationalization Year: 2025-26 Vapi Shalby, Vapi (146 beds) Estimated Cost: INR 1,600 m
Slide 22: SOCE Franchise Performance (Q3 FY23)
SOCE Franchise Performance (Q3 FY23) 21
Slide 23: Leveraging Expertise Through Franchise Asset Light Model Under SOCE
Leveraging Expertise Through Franchise Asset Light Model Under SOCE SHALBY ORTHOPEDIC CENTRE OF EXCELLENCE An Asset light franchise model will leverage Shalby expertise and enable to penetrate faster across pan-India Two Business models Shalby Shalby Shalby Franchise System Operations System Operati
Slide 24: SOCE Unit Performance – Q3 FY23
SOCE Unit Performance – Q3 FY23 Shalby Orthopedics Centre of Excellence (SOCE) Upcoming Centres1 Location Bed capacity Business Model Joint Replacement Procedures Q3 FY23 Q3 FY22 YoY Change Vijay 57 23 148% Aurangabad 35 FOSO Lucknow1 7 0 NA Rajkot 30 FOSO Total 112 50 1. MOUs are signed with counte
Slide 25: Shalby Academy (Q3 FY23)
CO) SHALBY ACADEMY (Q3 FY23) oo SHALBY ACADEMY i
Slide 26: Shalby Academy- Industry Ready Education
Shalby Academy- Industry Ready Education Key Strengths Students Enrolled (In Nos) 1,971 Constantly 12x growth growing 1,454 6200+* with strong 30+ Inhouse In-house 1,129 1,142 Students academic Healthcare Job Clinical partnership programs Offers experts 419 and robust infrastructure FY 19 FY 20 FY 2
Slide 27: Implant Business Performance (Q3 FY23)
IMPLANT BUSINESS Performance (Q3 FY23) 26
Slide 28: Implant Business Performance - Q3 FY23
Implant Business Performance - Q3 FY23 Revenue Quarterly Production* Q3 FY23 Highlights INR MN 13,260 • Q3 FY23 sales of INR 228 mn grew by 150% YoY 228 with 60% contribution by USA and 40% by India • In principle 8 new distributors are added YTD • Improved production capacity by ~50% to avg 4500 2x
Slide 29: Implant Business Roadmap
Implant Business Roadmap Shalby Advanced Technologies plans to become a Global player in a phased manner Current Phase 1 Phase 2 Phase 3 Presence South East and North Asian Middle East Countries East Africa North Japan India Countries • UAE • Kenya America • Indonesia, • Saudi Arabia • Ethiopia • Ma
Slide 30: 28 Years of ELITE Legacy
28 Years of ELITE Legacy Integrity Highest standards of transparency accountability, and corporate governance Learning Team Work Lazer sharp focus on A patient-centric focused upgrading the skills of team with a great blend of our team and building experience, diversity, fresh people capability thin
Slide 31: Hospitals Portfolio
Hospitals Portfolio Multispecialty Units (Owned and Managed) SOCE Vapi Shalby Indore Shalby Jaipur Shalby Vijay Shalby Krishna Shalby Mohali Shalby Naroda Shalby Udaipur Shalby SG Shalby Jabalpur Shalby Zynova Shalby Surat Shalby Lucknow Shalby (Mumbai) 30
Slide 32: Biggest Healthcare Corporate Group in Western and Central India
Biggest Healthcare Corporate Group in Western and Central India 10 Multispecialty Hospital and National Presence 3 Orthopedic Centers (SOCE) (2000 + Beds) 59 OPDs across 16 states PUNJAB ▪ Mohali – 145 beds Uttar Pradesh ▪ Lucknow – 40 beds Upcoming 2 Units (321 Beds) RAJASTHAN ▪ Jaipur – 237 beds M
Slide 33: Sustainability Initiatives
Sustainability Initiatives ESG Mindset “We at Shalby are embracing sustainability to drive new values to our business” Community Connect • We at Shalby are committed to embrace 270+ 100+ sustainability to drive new values to our business Healthcare Camps Healthcare Talks Workplace Wellness with best
Slide 34: Shalby In News
Shalby In News Shalby featured in Medgate Today (leading International Healthcare Magazine) An Article by Dr Vikram Shah, CMD on Medical Buyer Shalby Partnering with Google… CNBC TV 18 interviewing Mr Shanay Shah, President on Shalby’s business outlook 33
Slide 35: Shalby In News
Shalby In News Nerve block technique during Joint Replacement surgery in Shalby Jaipur Emergency training camp in Mumbai Insights on COVID in Ahmedabad Mirror 34
Slide 36: Shalby- Awards & Recognition
Shalby- Awards & Recognition Organ Donation Coordinator from Indore Ms Hemlata Singh has won the award of Best Organ Transplant Coordinator by NATCO (Network & Alliance for Transplant Coordinators of India). Sharing pics and Best Multi-Specialty Hospital Chain message by SOTTO Madhya Pradesh. Awarde
Slide 37: Disclaimer and Contact Details
DISCLAIMER and CONTACT DETAILS 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