Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Q2 & H1 FY21 Earnings Presentation
26 slides from Healthcare Global Enterprises's earnings presentation, Nov 12, 2020
Slide 1: Exchange filing cover letter for investor presentation
November 12, 2020 National Stock Exchange of India Limited, BSE Limited, Compliance Department, Compliance Department, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai - 400051, Dalal Street, Mumbai - 400001, Maharashtra, India Maharashtra, India Dear Sir/Madam,
Slide 2: HealthCare Global Enterprises Limited Investor Presentation Q2 & H1-FY21
HealthCare Global Enterprises Limited Investor Presentation Q2 & H1-FY21 www.hcgel.com © 2020 Healthcare Global Enterprises Limited 1
Slide 3: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This pr
Slide 4: Leadership in specialty healthcare
Leadership in specialty healthcare www.hcgel.com © 2020 Healthcare Global Enterprises Limited 3
Slide 5: Overview Financial Highlights Appendix
Overview Financial Highlights Appendix www.hcgel.com © 2020 Healthcare Global Enterprises Limited 4
Slide 6: Overview of HCG (1/2)
Overview of HCG (1/2) Snapshot of the Business Comprehensive cancer diagnosis and Specialty healthcare provider with a focus treatment services (through radiation therapy, medical oncology and surgery) on cancer and fertility Largest1 provider of cancer care in India 226 comprehensive cancer centers
Slide 7: Overview of HCG (2/2)
Overview of HCG (2/2) Entry into fertility business Today India’s largest provider through the acquisition of 50.1% of cancer care¹ in BACC Healthcare Pvt. Ltd. Awarded Oncology Leader 2013 of the Year by Frost & Sullivan Milann ranked #1 nationally 2011 Entry into the clinical laboratory business t
Slide 8: HCG's Cancer Care Network
HCG’s Cancer Care Network Network of Existing and Under HCG Network Development Cancer Care centers Center of Excellence (CoE)1 Comprehensive Cancer center (22)2 Freestanding Diagnostic center (3)2 2,0711 +28 +17 Cancer centers Under Development (2) BEDS LI NEAR PET - CT ACCELERATORS SCANNE RS NCR J
Slide 9: Overview Financial Highlights Appendix
Overview Financial Highlights Appendix www.hcgel.com © 2020 Healthcare Global Enterprises Limited 8
Slide 10: Financial Highlights: Q2-FY21
Financial Highlights: Q2-FY21 INR million except earnings per share • Q2’21 Revenue declined 11% y-o-y Growth Period Ended Sep 30 Q2-FY21 Q2-FY20 (y-o-y) • HCG(1) centers: -8.8% Income from Operations 2,479 2,785 -11.0% • Milann centers: -41.1% Other Income 40 15 • Q2’21 Operating EBITDA (1) EBITDA
Slide 11: Financial Highlights: H1-FY21
Financial Highlights: H1-FY21 INR million except earnings per share • H1’21 Revenue declined 19% y-o-y Growth Period Ended Sep 30 H1-FY21 H1-FY20 (y-o-y) • HCG(1) centers: -17.0% Income from Operations 4,414 5,473 -19.4% • Milann centers: -52.7% Other Income 67 28 • H1’21 Operating EBITDA (1) EBITDA
Slide 12: Revenue Mix: Q2-FY21
Revenue Mix: Q2-FY21 Revenue: HCG Centers: INR 2,479 Mn INR 2,369 Mn [CATEGOR Y NAME] HCG (1) [CATEGOR 30%1 (30%) centers Y NAME] 96% 33%1 (35%) (93%) 1 Fertility (2) centers 4% North India Maharashtra (7%) 1 2% 17% (2%) 1 (14%) 1 A.P. East India Tamil Nadu 8% 9% 1% (7%) 1 (8%) 1 (1) 22 comprehensiv
Slide 13: HCG Centers: Q2 & H1-FY21 Revenues
HCG Centers: Q2 & H1-FY21 Revenues INR million Growth Growth • Strong resilience in revenues Period Ended Sep 30 Q2-FY21 Q2-FY20 (y-o-y) H1 FY21 H1 FY20 (y-o-y) across centers located in Tier 2/3 towns in Q2-FY21 Karnataka 794 911 -12.8% 1,490 1,797 -17.1% Gujarat 701 773 -9.3% 1,161 1,560 -25.6% •
Slide 14: HCG Centers: Q2-FY21 Operating Metrics
HCG Centers: Q2-FY21 Operating Metrics No. of Centers Beds Avg. Occupancy Rate Q2-FY21: Q2-FY21 : Q2-FY21 : • ARPOB for existing centers at INR 31,895 against INR 33,536 in Q2-FY20 25 2,071 41.4% Q2-FY20: • ALOS at 2.42 days showed marginal Q2-FY20: Q2-FY20: increase 2,031 43.1% 24 • Operating EBITD
Slide 15: HCG Centers: Q2-FY21 Regional Highlights
HCG Centers: Q2-FY21 Regional Highlights ARPOB Revenue Operating Centers Beds AOR (INR/Day) (INR MN) EBITDA % Karnataka COE Revenue decline of -26.9% y-o-y COE ARPOB of INR 45.7k and 14.6% 7 615 43.9% 34.1K 794 16.0% operating EBITDA margin Revenue from international patients impacted -7.2%(1) -4.0%
Slide 16: Milann: Implementing Strategic Initiatives
Milann: Implementing Strategic Initiatives Existing centers(1) New centers(2) Chandigarh Delhi Q2-FY21 Q2-FY20 Growth New Registrations 797 1,394 -42.8% Bangalore (5 centers) IVF Cycles 373 510 -26.9% Revenue (INR Mn) 111 188 -41.1% M S Ramaiah Indiranagar Strong recovery in registrations and IVF cy
Slide 17: Capital Expenditure and Net Debt
Capital Expenditure and Net Debt Capital Expenditure Net Debt INR Million INR Million H1-FY21 FY20 30-Sep-20 30-Jun-20 Net Debt HCG Centres (1) Bank Debt 3,953 5,937 Existing Centres 30 169 Vendor Finance (2) 710 904 Expansions 94 366 Capital Leases - - New Centres 18 717 Other Debt 68 70 142 1,252
Slide 18: Project Updates
Project Updates Additional 2 new HCG centers in FY2022 / 23 No new Milann center in FY2020 Bed Project Cost Location Start Date Capacity (INR mn) Location Start Date Jaipur, Rajasthan 50 410 Q2-FY19 Delhi Q1-FY17 Bhavnagar, Gujarat NA 150 Q2-FY19 Chandigarh Q3-FY17 Nashik Phase II, 92 623 Q2-FY19 Ma
Slide 19: Overview Financial Highlights Appendix
Overview Financial Highlights Appendix www.hcgel.com © 2020 Healthcare Global Enterprises Limited 18
Slide 20: Investment Thesis
Investment Thesis Strong Industry trends Largest provider of High quality care provided Strong management and growing oncology cancer care in India with at a competitive price team with successful cases backdrop a proven track record track-record www.hcgel.com © 2020 Healthcare Global Enterprises Li
Slide 21: Industry Trends and Backdrop
Industry Trends and Backdrop Cancer Incidences in India to Increase Incidence of Cancer Across Countries¹ 3.4 Cancer prevalence in India estimated to be 3.9mn in 2015 Estimated 1.6-2.2 Estimated 1.1mn new cancer cases reported in 2015 1.7 incidence of 1.1 0.9 cancer in 2015 (mns) Real incidence coul
Slide 22: Industry Trends and Backdrop: Demand Supply Gap
Industry Trends and Backdrop Demand Supply Gap and Treatment Landscape Existing Demand Supply Gap in Diagnostics… …and Treatment Lack of adequate infrastructure and absence of mass screening A key requirement for successful radiation therapy is availability programs are key barriers to timely diagno
Slide 23: Largest Provider of Cancer Care in India
Largest Provider of Cancer Care in India A Proven Track Record¹ HCG’s market leading position, successful track record and strong reputation in India provides a significant advantage over its competitors Largest Cancer Care Provider… …With a Strong Track Record Largest provider of cancer care in Ind
Slide 24: High Quality Care
High Quality Care Provided at Competitive Price Ability to provide high quality care driven by a multidisciplinary and technology focused approach Approach to Providing High Quality Care… …Results in Successful Clinical Multidisciplinary approach to cancer care - specialist physicians from Outcomes…
Slide 25: Coverage by Harvard
Coverage by Harvard Unique and Successful Comparable outcomes Business Model at fraction of cost Survival Rate Cost Govindarajan et. al. .Harvard Business Review, November 2012, “Delivering World Class Health Care Affordably, Innovative hospitals in India are pointing the way”G www.hcgel.com © 2020
Slide 26: Thank You
THANK YOU For updates and specific queries, please visit www.hcgel.com or feel free to contact investors@hcgoncology.com © 2019 HealthCare Global Enterprises Limited., All Rights Reserved. HCG Logo is trademark of HealthCare Global Enterprises Limited In addition to Company data, data from market re
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