Fortis Healthcare Ltd. · NSE:FORTIS
Fortis Healthcare — Q3 FY2019 Earnings Presentation
37 slides from Fortis Healthcare's earnings presentation, Feb 14, 2019
Slide 1: Cover letter to stock exchanges
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/STEX/ 2018-19 February 14, 2
Slide 2: Earnings Presentation – Q3 & 9M FY2019
Fortis Healthcare Limited Earnings Presentation – Q3 & 9M FY2019 “ Saving and Enriching Lives” February 13, 2019
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
Slide 4: Agenda
Agenda 1. Key Corporate Developments 2. Executive Results Summary 3. Financial Highlights – Q3FY19 & 9MFY19 4. Performance Review – Hospitals Business 5. Performance Review – Diagnostics Business 6. Awards and Excellence 7. Appendix
Slide 5: 1. Key Corporate Developments
1. Key Corporate Developments 4
Slide 6: Corporate Developments
Corporate Developments • IHH through its wholly owned subsidiary NTK Ventures Pte Ltd invested Rs 4,000 Cr into the company through a preferential allotment at Rs 170 per share( Nov 2018) • The investment provides IHH a 31.1% stake in the company, becoming the single largest shareholder • Pursuant t
Slide 7: Corporate Developments (cont..)
Corporate Developments (cont..) RHT Transaction Update • Acquisition of the RHT Indian entities owning the entire portfolio of India assets held by RHT completed on January 15, 2019. The portfolio includes : • 12 clinical establishments, • 2 operating hospitals, • 1 clinical establishment under cons
Slide 8: 2. Executive Results Summary
2. Executive Results Summary 7
Slide 9: Executive Summary – Q3FY19
Executive Summary – Q3FY19 Consolidated Financials QoQ QotQ Particulars (In Rs Cr) Q3FY18 Q2FY19 Q3FY19 % Change % Change Revenue 1,120.7 1,139.9 1,103.3 -1.6% -3.2% Operating EBITDAC* 152.6 142.1 136.6 -10.5% -3.9% Operating EBITDAC margin 13.6% 12.5% 12.4% Operating EBITDA 85.4 75.1 68.3 -20.1% -9
Slide 10: Executive Summary – 9MFY19
Executive Summary – 9MFY19 Consolidated Financials Particulars (In Rs Cr) 9MFY18 9MFY19 Variance % Revenue 3,474.4 3,285.2 -5.4% Operating EBITDAC* 515.6 359.2 -30.3% Operating EBITDAC margin 14.8% 10.9% Operating EBITDA 313.3 158.5 -49.4% Operating EBITDA margin 9.0% 4.8% PBT pre-exceptional / FX 4
Slide 11: Business Summary Highlights
Business Summary Highlights Consolidated Business • Business continuing to see traction versus Rs Crore Revenue EBITDAC trailing quarter. 1200 1140 1103 150 1042 142 137 • Hospital business performance witnessed 900 100 steady improvement despite a seasonally low 600 80 50 quarter 300 • EBITDAC marg
Slide 12: Indicative Occupancy Trend
Indicative Occupancy Trend Occupancy 75% 69.3% 70% 67.4% 67.6% 66.0% 65% 61.9% 60% 55% Q4FY18 Q1FY19 Q2FY19 Q3FY19 Jan - Feb(MTD)'19 Occupancy Occupancy Occupancy Occupancy Units Q4FY18 Q1FY2019 Q2FY2019 Q3FY2019 FMRI 58% 52% 62% 64% Noida 75% 73% 79% 76% Shalimar Bagh 67% 66% 75% 82% BG Road 69% 66
Slide 13: Build Back Plan - Beginning to see traction
Build Back Plan - Beginning to see traction ➢ Sales Optimising channel engagement & empanelment i.e. PSU/Government & ECHS in select facilities Uptick in international business with stabilisation in international facilitator payments Improving revenue momentum through digital enablers ➢ Brand
Slide 14: 3. Financial Highlights – Q3 & 9M FY2019
3. Financial Highlights – Q3 & 9M FY2019 13
Slide 15: India Business Highlights – Q3FY19 vs Q3FY18
India Business Highlights – Q3FY19 vs Q3FY18 India Business – Revenue mix Rs 1,115 Cr Rs 1,098 Cr ➢ Consolidated Revenues at Rs 1,098 Cr, (2%) 18% 19% ❖ Hospital Business – Rs 889 Cr, (2%) 82% 81% ❖ Diagnostic Business – Rs 209 Cr, +2% Q3FY18 Q3FY19 Hospital Business Diagnostic Business India Busine
Slide 16: India Business Highlights – Q3FY19 vs Q2FY19
India Business Highlights – Q3FY19 vs Q2FY19 India Business – Revenue mix Rs 1,134 Cr Rs 1,098 Cr ➢ Consolidated Revenues at Rs 1,098 Cr, (3%) 21% 19% ❖ Hospital Business – Rs 889 Cr, (1%) 79% 81% ❖ Diagnostic Business – Rs 209 Cr, (11)% Q2FY19 Q3FY19 Hospital Business Diagnostic Business India Busi
Slide 17: India Business Highlights – 9MFY19 vs 9MFY18
India Business Highlights – 9MFY19 vs 9MFY18 India Business – Revenue mix Rs 3,457 Cr Rs 3,269 Cr ➢ Consolidated Revenues at Rs 3,269 Cr, (5%) 19% 20% ❖ Hospital Business – Rs 2,609 Cr, (7%) 81% 80% ❖ Diagnostic Business – Rs 660 Cr, +3% 9MFY18 9MFY19 Hospital Business Diagnostic Business India Busi
Slide 18: Balance Sheet – December 31, 2018
Balance Sheet – December 31, 2018 Rs Cr Sept 30, 2018 Dec 31, 2018 Debt 1,745 1,567 Share Capital 519 755 Other components of Equity and Liabilities 6,069 9,469 Total Equity & Liabilities 8,333 11,790 Investments 1,270 1,225 Cash and Cash Equivalents 248 3,926 Other components of Assets 6,815 6,639
Slide 19: 4. Performance Review – Hospital Business
4. Performance Review – Hospital Business 18
Slide 20: India Hospital Business – Q3 FY2019
India Hospital Business – Q3 FY2019 Q3FY18 Q2FY19 Q3FY19 • International patient revenue QoQ Particulars % Change at Rs 104 Cr, + 4.5% growth (Rs Cr.) (Rs Cr.) (Rs Cr.) over trailing quarter Operating Revenue 909.1 899.5 889.0 -2.2% • Key Hospitals revenue growth Operating EBITDAC* 117.8 87.6 99.6 -
Slide 21: India Hospital Business – 9MFY2019
India Hospital Business – 9MFY2019 9MFY18 9MFY19 Variance (%) Particulars (Rs Cr.) (Rs Cr.) Operating Revenue 2,814.5 2,608.5 -7.3% Operating EBITDAC* 394.5 229.0 -41.9% Operating EBITDAC margin 14.0% 8.8% Net BT Costs 202.3 200.7 -0.8% Operating EBITDA 192.2 28.4 -85.2% Other Income 100.6 63.3 EBIT
Slide 22: Key Performance Metrics
Key Performance Metrics Occupancy (%) ARPOB (Rs Cr) ALOS (Days) 70% 69% 68% 1.51 3.46 1.49 1.48 3.42 3.42 Q3FY18 Q2FY19 Q3FY19 Q3FY18 Q2FY19 Q3FY19 Q3FY18 Q2FY19 Q3FY19 21
Slide 23: Key Hospitals Performance
Key Hospitals Performance Rs Crore 9MFY18 9MFY19 450 392 400 346 350 319 299 289 300 248 250 222226 230 206 207 200 184 162 166 150 129 140 116110 113 101 100 50 - FMRI Mohali FEHI BG Road Mulund Noida Shalimar Anandpur Malar Jaipur Bagh 22
Slide 24: Key Initiatives – Q3 FY2019
Key Initiatives – Q3 FY2019 For the first time in India, a team of doctors at Fortis Escorts successfully performed the catheter-based procedure of MitraClip to repair a leaking heart valve without surgery in a 69-years old patient who was suffering from repeated heart failure and in whom open hea
Slide 25: 5. Performance Review – Diagnostics Business
5. Performance Review – Diagnostics Business 24
Slide 26: Diagnostic Business – Q3FY19
Diagnostic Business – Q3FY19 Rs Cr Revenue EBITDA Margin ➢ Net Operating revenue at Rs 209 Cr, +1.6% (like for like 235 30.0% 206 209 growth ~3%) 200 23.0% 20.0% ➢ Operating EBITDA margin stood at 17.6% compared to 18.2% 17.6% 18.2% in Q3FY18 & 23% in Q2FY19 100 10.0% ➢ SRL conducted over 9.35 milli
Slide 27: Key Performance Metrics
Key Performance Metrics Number of Tests and Average Realizations Business Mix By Revenue No of Tests (mn) Average realisation per Test (Rs) Lab Medicine Radiology 310 11 100% 5.9% 5.8% 5.7% 5.7% 6.0% 10.05 9.87 9.38 9.28 9.35 80% 290 9.17 287 287 9 278 281 280 60% 276 270 94.1% 94.2% 94.3% 94.3% 94.
Slide 28: Revenue Mix
Revenue Mix Geographic Mix Customer Mix Internation International, Clinical Wellness, 3% Trial, 0% al, 3% 3% Q3 FY2019 Q3 FY2019 West, 27% North, 32% Direct Client, 17% Walk-in, 37% South, 19% Hospitals, East, 20% 21% CC, 19% Internation Internation Clinical al, 2% Wellness, al, 2% Trial, 4% 0.29% D
Slide 29: 6. Awards and Excellence
6. Awards and Excellence . 42 Fortis
Slide 30: Key Awards and Recognitions
Key Awards and Recognitions Fortis Healthcare has won the prestigious FICCI Healthcare Excellence Awards 2018 in the Social Initiative category for the 'Umeed- Dhadkan' programme. The award was received by the Programme Director, at an event held in New Delhi in August 2018. Four Fortis hospitals wo
Slide 31: Successes in Clinical Excellence – Q3 FY2019
Successes in Clinical Excellence – Q3 FY2019 A team of doctors at Fortis Hospital, Noida, performed a complex lifesaving surgery, wherein they surgically removed a large metallic machine fragment from the heart of a 32-year-old male. The patient worked in a factory where his job entailed the use of
Slide 32: 7. Appendix
7. Appendix . 42 Fortis
Slide 33: India Consolidated P&L – Q3 FY2019
India Consolidated P&L – Q3 FY2019 Q3FY18 Q2FY19 Q3FY19 Particulars QoQ % Change (Rs Cr.) (Rs Cr.) (Rs Cr.) Operating Revenue 1,115.0 1,134.4 1,098.2 -1.5% Operating EBITDAC* 155.3 141.6 136.3 -12.2% Operating EBITDAC margin 13.9% 12.5% 12.4% Net BT Costs 67.2 67.0 68.3 1.6% Operating EBITDA 88.1 74
Slide 34: India Consolidated P&L – 9M FY2019
India Consolidated P&L – 9M FY2019 9MFY18 9MFY19 Particulars Variance (%) (Rs Cr.) (Rs Cr.) Operating Revenue 3,456.5 3,268.8 -5.4% Operating EBITDAC* 522.7 360.3 -31.1% Operating EBITDAC margin 15.1% 11.0% Net BT Costs 202.3 200.7 -0.8% Operating EBITDA 320.4 159.6 -50.2% Other Income 105.4 68.9 EB
Slide 35: Group Consolidated P&L – Q3 FY2019
Group Consolidated P&L – Q3 FY2019 Q3FY18 Q2FY19 Q3FY19 Particulars QoQ % Change (Rs Cr.) (Rs Cr.) (Rs Cr.) Operating Revenue 1,120.7 1,139.9 1,103.3 -1.6% Operating EBITDAC* 152.6 142.1 136.6 -10.5% Operating EBITDAC margin 13.6% 12.5% 12.4% Net BT Costs 67.2 67.0 68.3 1.6% Operating EBITDA 85.4 75
Slide 36: Group Consolidated P&L – 9M FY2019
Group Consolidated P&L – 9M FY2019 9MFY18 9MFY19 Particulars Variance (%) (Rs Cr.) (Rs Cr.) Operating Revenue 3,474.4 3,285.2 -5.4% Operating EBITDAC* 515.6 359.2 -30.3% Operating EBITDAC margin 14.8% 10.9% Net BT Costs 202.3 200.7 -0.8% Operating EBITDA 313.3 158.5 -49.4% Other Income 107.5 69.9 EB
Slide 37: Thank You
For further details please contact: Anurag Kalra / Gaurav Chugh Investor Relations +91-9810109253 / 9958588900 Fortis Healthcare Limited Thank You