Shalby Ltd. · NSE:SHALBY
Shalby — Q2 FY20 Earnings Presentation
39 slides from Shalby's earnings presentation, Nov 11, 2019
Slide 1: Exchange filing cover letter for investor presentation
November 11, 2019 Shalby/SE/2019‐20/60 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 Sub: Investor Presentation for the Second quarter & Half year ended 30th September 2019 ‐
Slide 2: Investor Presentation – Q2 FY20
INVESTOR PRESENTATION – Q2 FY20 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. www.shalby.org
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: Recent Recognition
RECENT RECOGNITION Shalby Hospital recognized for Company of the Year Award for the Healthcare category by SAP and Zee Business on 11th Oct 2019. www.shalby.org 3
Slide 5: Content
CONTENT 01 CORPORATE FACTS 02 OPERATIONAL PERFORMANCE 03 FINANCIAL PERFORMANCE 04 OTHER KEY UPDATES www.shalby.org 4
Slide 6: Corporate Facts
CORPORATE FACTS www.shalby.org 5
Slide 7: We value each and every human life
“ 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. www.shalby.org ” 6
Slide 8: Corporate Philosophy: Vision, Mission, 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 9: 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 10: Historic Evolution
HISTORIC EVOLUTION Year 1994 2004 2007 2011 2015 2017 2019 2012 2012 1070 594 Bed Capacity 6 27 228 11 11 6 4 1 1 2 # of Hospitals Started Revenue Operationalize Acquired Commissioned Bed capacity Started professional growth – 100 d First Multi Shalby Vapi Shalby Jabalpur grown 10 time
Slide 11: Corporate Facts
CORPORATE FACTS 11 Hospitals 60% Operating bed to total bed capacity 2012 Total Bed Capacity 48% Bed Occupancy (based on 985 census beds) 1200 Operational beds 31% 12 year CAGR Revenue 3000+ Human Resource (Doctor + Staff) 36% 12 year CAGR EBITDA 1600+ Surgeries per month 33000+ Patients served per
Slide 12: Organisation Structure
ORGANISATION STRUCTURE CORPORATE STRUCTURE UNIT LEVEL STRUCTURE Unit CAO Chairman & Managing Director Clinical Applications Corporate development Accounts DIRECTOR Group COO CFO CHRO CIO VP Projects HR Hospitality Cluster COO CORPORATE SUB-FUNCTIONS IT/Systems Billing Unit CAO Pharmacy Admin/Ope
Slide 13: Shareholding Pattern as on 30th Sep 2019
SHAREHOLDING PATTERN AS ON 30th SEP 2019 Promoter & Promoter Group 79.43% Resident Individuals 7.40% Foreign Portfolio Investors 5.41% Bodies Corporates 4.72% Employee Trust 0.93% Alternate Investment Funds 0.89% HUF 0.55% Non Resident Indians 0.42% Trust 0.14% Other 0.11% www.shalby.org 12
Slide 14: Our Presence
OUR PRESENCE Existing 11 Units (2012 beds) Upcoming 3 Units (388 beds) Network of 37 Outpatient Clinics across 11 states in India National Presence International Presence (in Africa) PUNJAB Mohali – 145 beds RAJASTHAN Sudan (1) Addis Ababa (1) Jaipur – 237 beds Eldoret Kisumu Nairobi (1) Rwa
Slide 15: Operational Performance
OPERATIONAL PERFORMANCE www.shalby.org 14
Slide 16: Performance Synopsis – Q2 FY20
PERFORMANCE SYNOPSIS – Q2 FY 20 Particulars Q2 FY19 Q1 FY20 Q2 FY20 Growth Y-O-Y(%) Growth Q-O-Q(%) - Q2 Total Revenue (INR million) 1,216.1 1337.2 1278.8 5% -4% Total EBITDA (INR million) 250.6 311.5 301.3 20% -3% EBITDA Margin (%) 20.60% 23.29% 23.56% Bed Capacity (Nos.) 2012 2012 2012 Operational
Slide 17: IP, OP, Surgeries – Quarterly Trend
IP, OP, SURGERIES – QUARTERLY TREND IP Count OP Count Surgeries Count 17408 87575 6146 16155 83187 14761 15316 76794 77140 71738 4897 4893 4985 13642 6726 4638 6356 2921 5027 6644 4844 2689 2685 2655 2619 9734 9799 10682 8798 8672 3225 2208 2019 2208 2330 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 F
Slide 18: IP, OP, Surgeries – Maturity Wise Quarterly Trend
IP, OP, SURGERIES – MATURITY WISE QUARTERLY TREND IP Count Day Care Count 5209 4001 3993 3290 3277 2952 3576 2231 850 909 460 553 556 212 48 52 6+ Years 4-6 Years 2-4 Years <2 Years 6+ Years 4-6 Years 2-4 Years <2 Years IP Count Q2 - FY 19 IP Count Q2 - FY 20 Daycare Count Q2 - FY 19 Daycare Count Q
Slide 19: Financial Performance
FINANCIAL PERFORMANCE www.shalby.org 18
Slide 20: Key Financial Parameters – H1 FY20
KEY FINANCIAL PARAMETERS – H1 FY20 (Values in INR Mn) Particulars Q1 FY19 Q2 FY19 H1 FY19 Q1 FY20 Q2 FY20 H1 FY20 Growth (H1 FY19 Vs H2 FY20) Revenue 1187.4 1216.1 2403.5 1337.2 1278.8 2616.0 9% EBITDA 275.0 250.5 525.5 311.5 301.3 612.8 17% EBITDA Margin 23.2% 20.6% 21.9% 23.3% 23.6% 23.4% PBT 177.
Slide 21: Key Financial Parameters – Q2 FY20
KEY FINANCIAL PARAMETERS – Q2 FY20 Revenue (INR Mn) EBITDA (INR Mn) PBT (INR Mn) PAT (INR Mn) 1278.79 301.33 128.97 199.30 250.56 5% 20% 36% 250% 147.04 1216.09 36.87 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 ARPOB (INR/Day) ALOS (Excluding Daycare) 4.28 1% 9% 3.91 29,399 29,24
Slide 22: Financial Highlights – Q2 FY20
FINANCIAL HIGHLIGHTS – Q2 FY 20 (Values in INR Mn) Growth Growth Particulars Q2 FY19 % of Revenue Q1 FY20 % of Revenue Q2 FY20 % of Revenue (y-o-y) (Q-o-Q) Revenue from Operations 1,193.9 1317.7 1,258.3 5% -5% Other Income 22.2 19.5 20.5 -8% 5% Total Income 1,216.1 1337.2 1,278.8 5% -4% Expenses Mat
Slide 23: Revenue Mix – Q2 FY20
REVENUE MIX – Q2 FY20 4%4% 10% 4% 12% Arthoplasty 5% 7% SPECIALITY Critical Care & General Medicine 6% MIX (Revenue) Cardiac Science 8% 9% Q2 FY20 Oncology Q2 FY19 Other Ortho 11% 42% 44% Neurology 10% Nephrology 12% 11% Others 14% 5% 22% 1% PAYER MIX (Revenue) Self Pay 19% Corporate Government Q2 F
Slide 24: Maturity Profile – Q2 FY20
MATURITY PROFILE – Q2 FY20 OPERATIONAL PARAMETERS # Parameters 6 Years+ 4-6 Years 2-4 Years <2 Years Total 1 Total Bed Capacity 594 476 747 145 2012 2 Operational Beds 437 330 324 73 1200 3 Avg. Occupied Beds 177 145 127 24 473 4 Occupancy ( % ) 41% 44% 39% 33% 41% FINANCIAL PARAMETERS # Parameter
Slide 25: Other Key Updates
OTHER KEY UPDATES www.shalby.org 24
Slide 26: Clinical Highlights
CLINICAL HIGHLIGHTS Voice conservative surgery for Vocal Cord Cancer Tumor of left Vocal Cord in a middle aged male removed endoscopically and successfully treated post operative, by chemo radiotherapy at Shalby Indore. The patient was discharged without any recurrence of tumor and with fair voice
Slide 27: Shalby Academy
SHALBY ACADEMY Launched "Certificate of Internship Program" in Physiotherapy, Paramedical, Biomedical Engineering & Nursing.- August 2019. Successfully Inducted batch of 61 physiotherapist for "Certificate of Internship program" Launched new courses in association with National Council of Para
Slide 28: Our Business Model – Optimising Capex and Opex
OUR 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 Foc
Slide 29: 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 28
Slide 30: Our Business Models
OUR BUSINESS MODELS… Fully Owned No fixed Efficiency is rental paramount Unique revenue No security Operate sharing deposit Hospital and Manageme Manage model nt Contracts [Revenue Sharing] No minimum guarantee www.shalby.org 29
Slide 31: Role of OPDs for Expansion
ROLE OF OPDS FOR EXPANSION Simultaneously hire local doctors Patients visit our and train them at clinics across Ahmedabad who India and abroad conduct OPDs in and around So we can start Punjab We analyze that city the facility with patient trends and low branding accordingly decide budget but high
Slide 32: The Opportunity Set
THE OPPORTUNITY SET Population and Population Growth Rate of India Spilt of Indian Healthcare Industry by Segments (Historical and Expected) Total market size (2016): INR 9.2 trillion CAGR (2014-2020) 4% 100%= 0.9% 9% 1.27 billion1.29 billion 1.32 billion 1.35 billion 13% 54+ years 100% 2.6% 6% 35-5
Slide 33: The Opportunity Size
THE OPPORTUNITY SIZE Spilt of Public and Private Hospitals in India Indian Healthcare Delivery Industry size (2015-2020) (INR in Trillion) 11.7 10 30% 8.5 7.3 70% 6.2 5.4 Public Hospitals Private Hospitals 2015 2016(E) 2017(E) 2018(E) 2019(E) 2020(E) Private Corporate Hospitals account to less than
Slide 34: Recent Transformation
RECENT TRANSFORMATION Private sector investment has been increasing due to change in mind-set and better returns on investment Healthcare businesses can also be profitable as long the costs are affordable The advent of information technology has given a fillip to the healthcare business making
Slide 35: Case Study – The Cardiac Growth Story in India
CASE STUDY - THE CARDIAC GROWTH STORY IN INDIA 2014 ~ 2,00,000 surgeries and 8,00,000 angioplasties CAGR – 29% in 30 years. Currently growing @ 2-3% 2004 ~ 50,000 surgeries 1994 ~5000 surgeries Wide procedure penetration – to Tier 2 and 3 cities 1984 ~500 surgeries www.shalby.org 34
Slide 36: Knee Replacement – The Big Opportunity
KNEE REPLACEMENT - THE BIG OPPORTUNITY 2017 ~1,75,000 surgeries Last 1year, 2010 In United ~54,000 States ~0.8 mn surgeries knee replacements in a population 2000 of ~300 mn ~6000 India has a surgeries similar affording population. Hence, direct Asian potential to grow population to 8 lacs Knee 1994
Slide 37: Growth Drivers for Shalby
GROWTH DRIVERS FOR SHALBY Pioneer in Joint Replacements in the country, best positioned to capitalize on it Continue to gain Opportunities traction within within Homecare Oncology and Huge scope for Neurology organic growth and operating leverage Increasing focus on quaternary Cardiac treatments Sci
Slide 38: Conducive Government Policies Despite Challenges
CONDUCIVE GOVERNMENT POLICIES DESPITE CHALLENGES Swastha Bharat, Smriddha Bharat. Demographic dividend realization impossible without proper healthcare Rashtriya Samaj Beema Yojana: 100 mln families will get Rs 500,000 per year for their families to cover secondary and tertiary hospital expenses 100
Slide 39: Thank You
THANK YOU Shalby Limited I Opp Karnavati Club I S G Highway I Ahmedabad - 380 015 I India. www.shalby.org