Max India Ltd · NSE:MAXIND
Max India — Investor Presentation (December 2012)
51 slides from Max India's investor presentation, December 2012
Slide 1: Max India Limited Investor Presentation
Max India Limited Investor Presentation December 2012 www.maxindia.com BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:IN 1
Slide 2: Max Group - Overview
MAX GROUP - OVERVIEW www.maxindia.com 2
Slide 3: Our vision
Our vision “To be the most admired corporate for service excellence” Multi-business corporate Focused on people and service “ IN THE BUSINESS OF LIFE ” Life Insurance Healthcare Health Insurance Senior Living Protecting Life Caring for Life Enhancing Life 100% Owned; 74:26 JV* with Mitsui 74:26 JV*
Slide 4: A unique investment opportunity and a resilient business model
A unique investment opportunity and a resilient business model 1 USD 1.6 bn. Revenue*.. 5 Mn+ Customers..15,000 Employees… 40,000+ Agents..1,800 Doctors 2 Strong growth trajectory even in challenging times; a resilient & diversified business model 3 Steady revenue growth and cost rationalization lea
Slide 5: Max India – Key Highlights Q2 FY13
Max India – Key Highlights Q2 FY13 • Max India paid special dividend of Rs. 10 per share in November 2012 • Max India to divest its speciality films business for an enterprise value of Rs. 540 Cr. Max India • Max Life pays its maiden dividend of Rs. 99 Cr., Max India share = Rs. 70 Cr. paid a • Max
Slide 6: Consistent track record of strong growth across businesses
Consistent track record of strong growth across businesses with the group turning strong profits Rs Cr. Rs Cr. H1* Operating Revenue Trend FY 08 FY 09 FY 10 FY’11 FY12 FY13 10000 Operating 3,244 4,508 5,574 6,668 7,648 3,661 8000 Revenue 6000 Investment and 367 383 2,087 1,223 914 1.128 Other Income
Slide 7: Growth potential recognized by the market – high pedigree investor base
Growth potential recognized by the market…. high pedigree investor base Shareholding Pattern as on Sep 30, 2012 Others 10.3% • Reliance MF Mutual • Fidelity Funds Shareholding • DSP Blackrock 9.3% Promoter • Natwest Concentrated • Temasek 38.9% with Marquee • First State Investors • Matthews FII (Ot
Slide 8: Max Life Insurance Company (Max Life)
MAX LIFE INSURANCE COMPANY (Max Life) www.maxnewyorklife.com 8
Slide 9: The Essence of our chosen Strategy
The Essence of our chosen Strategy Our objective To be the most admired life insurance Sources of competitive advantage company in India with sharp focus on financial metrics ”Build a robust multi- channel distribution Our approach architecture while Max To serve the long-term savings and Life’s pro
Slide 10: ULIP:Trad Product Mix
Max Life was agile in shifting to traditional products post 2010 regulatory changes ULIP:Trad Product Mix FY11 Apr-Sep ‘12 Max Life 43% 57% 11% 89% SBI Life 85% 15% 40% 60% Birla Sunlife 70% 30% 50% 50% ULIP HDFC Life 86% 14% 60% 40% Trad. ICICI Pru 80% 20% 65% 35% Kotak Life 70% 30% 25% 75% Bajaj A
Slide 11: Private Industry's Agency continues to struggle, Max Life relatively better placed
Private Industry’s Agency continues to struggle, Max Life relatively better placed Average Agent Average Agent Case Average Branch Apr-Sep Productivity Rate Productivity ` 000s # ` Lakhs Insurer 2011 2012 2011 2012 2011 2012 Max Life 14.7 12.6 0.52 0.47 28 23 SBI Life 13.6 8.6 0.45 0.38 18 11 Birla
Slide 12: Max Life well positioned for the transformation
Max Life well positioned for the transformation Agency base at 40,000+ agents Highly productive agency Average case size improves to ~Rs. 24,000 with average case rate ~0.45 model and best in class Need based insurance sales training 400+ trainers on board Comprehensive product Product mix
Slide 13: Max Bupa Health Insurance (Max Bupa)
MAX BUPA HEALTH INSURANCE (Max Bupa) www.maxbupa.in 13
Slide 14: A symbiotic partnership in the health insurance space
A symbiotic partnership in the health insurance space • India’s leading conglomerate • Largest independent health • Successful track record of insurance provider in UK building businesses • 11 million customers in over 190 • Expertise in life insurance, countries health insurance and • Group revenue
Slide 15: Industry is poised for an exponential growth
Industry is poised for an exponential growth Key drivers of growth Indian Health Insurance Market (Rs. In Billion) 464 ▪ Increase in affordability 500 GWP (Rs. in Billion) 450 404 – Increasing affordability with rise 400 305 351 in income levels and healthcare 350 266 300 231 spend per capita 192 25
Slide 16: Max Bupa to capitalise on this opportunity through innovative product and superior service
Max Bupa to capitalise on this opportunity through innovative product and superior service offering Relationship Manager for Simplicity, Gold & Platinum Good Transparency: Hospitalization Hassle free claim Customers experience: Technology & Comprehensive processing; No Cashless processing; automatio
Slide 17: Extensive focus on key growth levers to maximize long-term value
Extensive focus on key growth levers to maximize long-term value Leveraging Max India capabilities • Max India has a strong understanding of Indian Insurance landscape Factsheet* – Max Bupa • Effectively implement learning's from Max Life’s success • Leverage synergies with Max Life and MHC Gross Wr
Slide 18: Max Healthcare (MHC)
MAX HEALTHCARE (MHC) www.maxhealthcare.in 18
Slide 19: Indian healthcare industry poised for exponential growth
Indian healthcare industry poised for exponential growth KEY HIGHLIGHTS • Indian Health Industry is poised to double to USD 125 bn by 2015E, driven by a combination of ageing population, growing lifestyle diseases and medical insurance penetration as well as increasing ability to afford quality heal
Slide 20: Increasing prevalence and propensity are key market drivers
Increasing prevalence and propensity are key market drivers Growing Health Insurance Market... Comparative medical cost 120 India UK US 100 100 80 65 (USD ’000s) Rs billion 60 48 111 84 32 40 24 66 18 19.2 20 51 8.5 9.8 32 7 4.5 6.4 14 17 22 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Open Heart Knee
Slide 21: MHC, with its unique model is well positioned to deliver high quality of care
MHC, with its unique model* is well positioned to deliver high quality of care to patients Quaternary /Tertiary Care - Max Super Speciality Hospitals – Saket •Organ Transplant - Max Super Speciality Hospital – Patparganj •Neurosciences - Max Super Speciality Hospital – Mohali •Oncology •Cardiac Care
Slide 22: Extensive focus on service excellence – a key strength for MHC
Extensive focus on service excellence – a key strength for MHC Comprehensive and integrated healthcare services • Complete service profile, cutting edge technology and state of the art infrastructure • North India centric strategy allows leveraging of medical capabilities Well established brand name
Slide 23: MHC delivering superior performance across all key metric
MHC delivering superior performance across all key metric Revenue and Contribution Margin Avg. operational beds and Avg. revenue per 63.0% occupied bed day* 750 59.7% 61.0% 1200 28000 59.2% 21558 23585 20431 600 59.0% 1000 18914 23000 57.2% 19433 56.5% 15540 57.0% 800 18000 450 55.0% 600 13000 300 5
Slide 24: Max Neeman Medical International (MNMI)
MAX NEEMAN MEDICAL INTERNATIONAL (MNMI) www.neeman-medical.com 24
Slide 25: India is one of the fastest growing clinical research destinations
India is one of the fastest growing clinical research destinations # of industry sponsored trials initiated in 2008 Growth of the Clinical Trial Industry in India 350 300 250 US$ Million 243 199 212 200 172 157 154 115 137 129 150 300 56 250 100 Poland Brazil Korea China Philippines Hungary Taiwan R
Slide 26: MNMI: A comprehensive service offering
MNMI: A comprehensive service offering • Full service contract research organization (CRO) with focus on Phase II, III & IV trails • Service offerings include: Project management, Site management, Data management, including, bio - statistics and report writing, monitoring services and supply chain m
Slide 27: Max India Foundation (MIF)
MAX INDIA FOUNDATION (MIF) www.maxindiafoundation.org 27
Slide 28: Max India Foundation: Making a difference to life
MAX INDIA FOUNDATION Making a difference… to life Max India Foundation Factsheet* – MIF • Corporate Social Responsibility (CSR) Arm of the Max India Group with a focus on Health, Children Locations 331 & Environment • Provides on Select Basis Treatment and Care for NGO Partners 297 those Below the P
Slide 29: Thank You
SMAx Thank You
Slide 30: Road Map to Becoming India's Most Admired Life Insurance Company
Road Map to Becoming India’s Most Admired Life Insurance Company Key Public Messages VISION Become the most admired Life Insurance Company in India A trusted life insurance specialist Customer centric Part of top quartile new Life Insurance Companies Financially responsible and strong Nati
Slide 31: Protection Oriented, Longer Tenor Life Insurance
Protection Oriented, Longer Tenor Life Insurance PRODUCT TYPE PROPORTION OF Tenure Age of Insured POLICIES (%, by (Years) (Years) number) WHOLE LIFE 19.1 44 32 ENDOWMENT 16 34 25.7 TERM 1.4 25 34 DEFERRED 0.2 ANNUITY 17 40 MONEY BACK 6.8 15 31 UNIT LINKED 45.4 15 36 HEALTH 0.8 14 38 0.6 19 45 GUARAN
Slide 32: Market Position Insurance Sales
Market Position Insurance Sales S. No. Company Individual New Business Premium (Rs. Cr) Premium Adjusted for 10% single premium YTD Sep ‘12 YTD Sep ‘11 Growth (%) Market Share 1 ICICI Prudential 1,224 1,029 19% 18.3% 2 HDFC Life 1,139 1,035 10% 17.0% 3 SBI Life 711 754 -6% 10.6% 4 Max Life 633 670 -
Slide 33: Max Life – Embedded Value
Max Life – Embedded Value Amount in Rs. Crore March 31, 2012 419 102 93 76 3,684 Cost Non 168 Overrun* Other Operating Operating Variance 3,216 Unwind of Variance Discount Value of New Business 1,973 2,075 Implied NBM** is 17.8% on APE* (19.5% in 2010-11) 1,711 1,141 Opening EV Closing EV Denotes in
Slide 34: Max Life – Key Assumptions to Embedded Value
Max Life – Key Assumptions to Embedded Value Economic Assumptions Particulars Assumptions Cash / Money Market / TB 8.27% G Secs 8.76% Corporate Bonds 9.46% Equities 13.00% Unit Linked Fund Growth Rate 10.50% Interest Rate on Non-Unit Reserves 8.25% Inflation 6.50% Risk Discount Rate 13.00 % Service
Slide 35: Max Life – Basis of Preparations for Embedded Value
Max Life – Basis of Preparations for Embedded Value Max Life’s EV guided by European Embedded Value principles “Top down” allowance for risk including allowance for time value of financial options and guarantees Explicit allowance for cost of capital where capital is the higher of the required solve
Slide 36: Track record of strong performance
Track record of strong performance 2 New Business Growth – Adjusted FYP 1 and Renewal premium and conservation ratio AUM 2000 20000 5000 90% 17215 4500 13836 4000 83% 82% 83% 1500 15000 81% 81% 3500 78% 10,121 3000 1000 10000 2500 60% 1308 2000 769 5405 3575 1500 500 5000 1835 1000 1595 1584 1724 15
Slide 37: Max Life Insurance
Max Life Insurance Quarter Ended Half Year Ended Key Business Drivers Unit Y-o-Y Y-o-Y Sep-12 Sep-11 Growth Sep-12 Sep-11 Growth a) Gross written premium income Rs. Crore First year premium 370 372 -1% 644 690 -7% Renewal premium 1,095 1,048 5% 2,089 2,030 3% Single premium 93 80 16% 168 153 10% Tot
Slide 38: MHC – Vision / Mission
MHC – Vision / Mission Key Differentiators PASSION Build Trust Focused NCR centric delivery – for operational excellence Deliver international class healthcare with a total service focus, by creating an Leadership in 5 super-specialties in tertiary care VISION institution committed to the highes
Slide 39: MHC – Key Physicians
MHC – Key Physicians Padma Shri Dr. Rustom Phiroze Soonawala Eminent and Internationally renowned Obstetrician & Gynaecologist. MD, FRCS, FRCOG Former President of the Federation of Obstetricians and Gynaecologists Chairman, Obstetrics & Gynaecology Padma Shri Dr. Pradeep K Chowbey Prior to join
Slide 40: MHC – Key Physicians
MHC – Key Physicians Padamashree Dr. (Prof.) H. S. Rissam Over 30 Years Experience in Cardiology & Medicine MD, DM, FICA FCCP, FISE, FIMSA, FICC, FCSI, FICN, Former Director Medical Sciences - Batra Hospital & Medical Research Centre, FRSM, MRSH Former Associate Director - Escorts Heart Instit
Slide 41: MHC – Accreditations and Awards
MHC – Accreditations and Awards FICCI Healthcare Excellence Awards (2010) ISO 14001:2004 at Pitampura ISO 9001:2008 Recertification at Max Heart & Vascular Institute, Noida, Pitampura, Panchsheel Park &Home Office First in North India to get NABH for MHVI & MSSH DL Shah National Award for Economics
Slide 42: Max Healthcare
Max Healthcare* Quarter Ended Half Year Ended Key Business Drivers Unit Y-o-Y Y-o-Y Sep-12 Sep-11 Growth Sep-12 Sep-11 Growth a) Revenue (Gross) Rs. Crore Inpatient Revenue 197.7 141.5 39.7% 386.6 277.1 39% Day Care Revenue 8.5 5.9 43.9% 17.5 11.7 49% Outpatient Revenue 65.1 50.3 29.5% 209.6 98.5 30
Slide 43: MHC – Investment Pattern
MHC –Investment Pattern Max India – Rs. 360 Cr Equity Life healthcare** – Rs. 428 Cr Capital IFC, Washington – Rs. 50 Cr Other Foreign Investors – Rs. 20 Cr Rs. 865 Crore ESOPs – Rs. 6 Cr Preference Capital IFC, Washington – Rs. 125Cr Project Cost* Rs. 125 Crore Rs. 1,756 Crore Indian
Slide 44: MHC Tertiary Care Facility, Saket
MHC Tertiary Care Facility, Saket [South Delhi] MAX DEVKI DEVI HEART & VASCULAR MAX SUPER SPECIALITY HOSPITAL INSTITUTE (West) (East & South) (May 2006) ( East :- December 2004, South :- February 2010) 184 beds (including 71 critical care beds) Patient beds – (East ; 207 beds) & (South ; 83 beds
Slide 45: MHC Tertiary Care Facility, Patparganj
MHC Tertiary Care Facility, Patparganj [East Delhi] PATPARGANJ BALAJI HOSPITAL (PPG I ) PATPARGANJ SUPER SPECIALITY HOSPITAL (PPG II) (May 2005) (Feb 2010) 154 inpatient beds 259 inpatient beds 3 OTs 7 OTs, 1 Cardiac Catheterization Labs General Surgery & MAS Invasive & Non Invasive Card
Slide 46: MHC Tertiary Care Facility [North India]
MHC Tertiary Care Facility [ North India] Mohali Bhatinda (September 2011) (September 2011) 142 inpatient beds and 45 Critical Care Beds 141 inpatient beds and 42 Critical Care Beds 5 OTs 5 OTs Oncology Oncology Cardiac Sciences Cardiac Sciences Orthopedics Orthopedics Neurosci
Slide 47: MHC Tertiary Care Facility [North India]
MHC Tertiary Care Facility [ North India] Dehradun Shalimar Bagh (May 2012) (November 2011) 166 inpatient beds and 39 Critical Care 196 inpatient beds and 80 Critical Care 4OTs 7 OTs Neurosciences Cardiology , Cathlab and Oncology Cardiac Care Orthopedics and Neuroscience Orthopedi
Slide 48: MHC Secondary Care Facility [Suburb of Delhi]
MHC Secondary Care Facility [ Suburb of Delhi ] GURGAON (July 2007) PITAMPURA (February 2002) NOIDA (August 2002) (North Delhi) 80 inpatient beds 90 inpatient beds 32 inpatient beds 3 OTs 2 OTs Orthopedics & Trauma 2 OTs Ophthalmology (anterior and posterior) Lithotripsy Mother a
Slide 49: MHC Speciality Centres – Panchsheel
MHC Speciality Centres – Panchsheel [South Delhi] OPTHALMOLOGY AND DENTAL CARE SPECIALIST CONSULTS AND (November 2005) HIGH-END DIAGNOSTICS (August 2006) Lasik, OPD and diagnostics Dental – 5 chambers GP and specialist consults Diagnostics Support services and offices Neurology (EEG and
Slide 50: Disclaimer
Disclaimer This presentation has been prepared by Max India Limited (the “Company”). No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in the presentation. The past performan
Slide 51: Max India Ltd. contact details
MAX INDIA LTD. Max House, Okhla, New Delhi – 110 020 Phone: +91 11 26933601-10 Fax: +91 11 26933619 Website: www.maxindia.com 51