Aster Dm Healthcare Ltd. · NSE:ASTERDM
Aster Dm Healthcare — Merger or Acquisition (November 2023)
36 slides from Aster Dm Healthcare's merger presentation, Nov 28, 2023
Slide 1: Filing cover letter to stock exchanges
November 28, 2023 The Secretary The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd 1st Floor, Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G Dalal Street, Mumbai 400001 Bandra Kurla Complex Scrip Code: 540975 Bandra (East), Mumbai 40005
Slide 2: Segregation of GCC & India
Segregation of GCC & India Creating two distinct geographically focused entities November 2023
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Aster DM Healthcare Limited (the "Company"), content of which was compiled from sources believed to be reliable for informational purposes only and are based on information regarding the Company and the economic, regulatory, market and other conditio
Slide 4: Aster DM Healthcare is being segregated to create two separate entities
Aster DM Healthcare is being segregated to create two separate entities, focused on India and GCC respectively Post-segregation, Aster DM Healthcare Limited will The GCC Business will be separated from Aster DM be a focused listed entity holding India business Healthcare Limited to create Aster GCC1
Slide 5: Transaction Overview
Transaction Overview ▪ The board of directors of Aster DM Healthcare (“Company” or “Aster”) at their meeting today approved the 100% sale of its GCC business (“GCC Business”) ▪ GCC Business will be acquired by Alpha GCC Holdings Limited, a company incorporated in Dubai International Financial Centre
Slide 6: Strategic rationale behind segregation
Strategic rationale behind segregation Creating pure-play India Segregation enables better operating entity that allows for understanding of India business 1 independent operations and 2 by investor community.. board / governance structure Clear Capital Allocation Strategy for ..allowing potential v
Slide 7: Creating pure-play India operating entity
Creating pure-play India operating entity that allows for independent operations and board / governance structure Key Highlights of the India Business 1 2,983 453 2,384 353 1,631 1,654 1,178 1,314 183 144 121 2 99 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 2nd largest hospital netwo
Slide 8: Segregation enables better understanding of India business by investor community
Segregation enables better understanding of India business by investor community… Public market investors / analyst community should better appreciate the India operations 1 Shareholders get exposure to pure play India business and an opportunity to witness the India growth story 2 The listed entity
Slide 9: …allowing for potential value unlocking
…allowing for potential value unlocking Better performance across key metrics post-segregation Financial Metrics Pre-segregation Post-segregation 1 (FY23) (GCC + India) (India) Revenue YoY Growth 16% 25% ✓ 2 EBITDA Margins 13% 15% ✓ EBITDA YoY Growth 6% 28% ✓ PAT YoY Growth -19% 146% ✓ 3 ROCE1 8.6%
Slide 10: Clear Capital Allocation Strategy for India Business going forward
Clear Capital Allocation Strategy for India Business going forward Internal accruals to enable investment (under our capex plan) to increase Aster India bed capacity to 6,334 beds by FY27 1 6,334 4,855 3,693 3,757 3,905 3,460 3,007 2 FY18 FY19 FY20 FY21 FY22 Current By FY27 Expected Completion Hospi
Slide 11: Our plan towards utilization of transaction proceeds
Our plan towards utilization of transaction proceeds As internal accruals are sufficient to fund our organic growth plans at Aster India, most of the transaction proceeds will be distributed as dividend to our shareholders - allowing significant returns for them – and the balance will allow us to pu
Slide 12: Pre-Segregation Structure
Pre-Segregation Structure Current Structure Promoters Public 41.88% 58.12% Aster DM Healthcare Limited India Business GCC Business Labs & Hospitals Clinics1 Pharmacies1 Hospitals Clinics Pharmacies 2 PECs Andhra Qatar Bahrain Jordan Kerala Karnataka Maharashtra Telangana UAE KSA Oman Pradesh Note: (
Slide 13: Post-Segregation Structure
Post-Segregation Structure INDIA LISTED ENTITY GCC ENTITY Promoters Public Promoters Fajr Consortium 41.88% 58.12% 35% 65% Aster DM Healthcare Aster GCC3 Limited Hospitals Clinics Pharmacies1 Labs & PECs Hospitals Clinics2 Pharmacies2 Andhra Kerala Karnataka Maharashtra Telangana UAE KSA Oman Qatar
Slide 14: Shareholders of the India listed entity
Shareholders of the India listed entity Marquee domestic and foreign institutional investors are currently invested in Aster DM Healthcare Shareholding pattern Current Key Institutional Shareholders 0.4% 10% 8% 42% 40% Promoter FII DII Public Others As on 24th November 2023 13
Slide 15: Shareholders of Resultant GCC Entity
Shareholders of Resultant GCC Entity Post Segregation Shareholding Pattern of Shareholder Information Aster GCC1 The Moopen family currently owns ~42%2 in Aster DM Healthcare Promoter Ltd. Dr. Azad Moopen is the Founder, Chairman and Managing Director of Aster DM Healthcare Promoters 35% Leading PE
Slide 16: Bankers and Advisors
Bankers and Advisors Investment Bankers Independent Valuers Financial/Tax advisors Legal Advisors Note: AZB and Partners were Counsel to Independent Directors 15
Slide 17: Aster India
Aster India 16
Slide 18: A leading healthcare provider in South India
A leading healthcare provider in South India Current Presence 15 cities and 19* 4,855 5 states Hospitals capacity beds Operational metrics 67% 3.4 days INR 39,000+ Occupancy ALOS ARPOB FY23 Financial metrics Revenue EBITDA CAPEX INR 2,983 cr Margin: 15% INR 282 cr 20% 35% ~INR 1,000 cr 5 Year CAGR 5
Slide 19: India's vast population and increasing healthcare expenditure
India’s vast population and increasing healthcare expenditure provides significant headroom for growth …drive consistently fast growth for healthcare One of the lowest hospital bed densities in the …coupled with very little spend on healthcare as % delivery in India, expected to be worth $100bn+ by
Slide 20: From Clinic to a healthcare Powerhouse: A Transformational Journey
From Clinic to a healthcare Powerhouse: A Transformational Journey to a Thriving Hospital Network... Kerala Cluster Andhra Pradesh & Telangana 2023 Corporate Segregation 2022 O&M Asset Light Model introduced 2021 Large Expansion of Facilities Aster Wholesale Pharmacy CB – Capacity Beds OB – Operatio
Slide 21: …with a dominant positioning in South India region
…with a dominant positioning in South India region Aster predominantly operates in the South; recent 2nd largest network in South India with significant capacity Revenue Growth (5-year CAGR) inroads in Maharashtra beds in southern states 1 Compared with listed peers in India (FY18-23) 2 5255 4624 27
Slide 22: Sustained improvement in our India Business performance
Sustained improvement in our India Business performance over the past few years No. of Capacity Beds ARPOB (in 000s) 4,855 39.0 3,757 3,905 33.5 3,693 30.1 3,460 27.7 3,007 26.1 23.7 FY18 FY19 FY20 FY21 FY22 Current FY18 FY19 FY20 FY21 FY22 Current Revenues (INR Crs) EBITDA (INR Cr) and Material & H
Slide 23: …delivering robust performance across all key metrics over the last five years
…delivering robust performance across all key metrics over the last five years FY18 FY23 Revenue (5-year CAGR of 20%) INR 1,178 Crores INR 2,983 Crores ✓ Expanding EBITDA Margin1 (5-year CAGR of 35%) 10% 18% ✓ Improving ROCE1 1% 20.1%2 ✓ 19 hospitals, 13 Clinics ✓ 10 hospitals Growing Facility Footp
Slide 24: For FY23, Aster India has delivered strong performance in its core hospital business
For FY23, Aster India has delivered strong performance in its core hospital business while rapidly growing the other new businesses % of Revenue Revenue EBITDA INR 2,851 Cr INR 514 Cr Hospitals and Clinics 20% 18% 93% Core established business 19 hospitals(1) 13 clinics 4,855 capacity beds YoY Reven
Slide 25: The core Hospitals business has shown strong and consistent improvement
The core Hospitals business has shown strong and consistent improvement across all operational parameters… Track record of consistent facility additions… …and increase in capacity beds… …leading to growing patient volumes… No. of Hospitals No. of Capacity Beds Patient Volumes (In Mn) 4,855 2.9 3,693
Slide 26: …resulting in a robust financial performance trajectory
…resulting in a robust financial performance trajectory over these years Hospital Revenue has grown at 20% CAGR over last 5 years… …helping expand Hospital EBITDA margin by 800 bps… Hospital Revenue Hospital EBITDA and EBITDA Margin (In INR Cr) (In INR Cr) 17% 18% 2851 13% 514 2343 12% 11% 9% 407 16
Slide 27: Low Capex O&M model to further improve our return profile
We are also making more investments via the Low Capex O&M model to further improve our return profile 2022 Adding more beds through the O&M asset light model allows us to take Aster Mother Hospital healthcare to suburban areas at minimal cost Areekode, Kerala 140 capacity beds FY 22 Year of Commence
Slide 28: Building the healthcare ecosystem with labs, pharmacies etc.
In addition, we are gradually building the healthcare ecosystem in India by establishing labs, pharmacies etc. to create network effects Doubling of facilities over FY22-23… …has led to a high jump in revenue… Leveraging the ecosystem of our pharmacies and labs to benefit the hospital business No. o
Slide 29: Our strategic priorities towards driving future growth and improvement in profitability
Our strategic priorities towards driving future growth and improvement in profitability Increasing Occupancy Current occupancy levels provide meaningful headroom for revenue growth through sweating of assets Asset Light Expansion Low Capex model to achieve better returns Cost Optimization Initiative
Slide 30: India Financials
India Financials 29
Slide 31: Business Snapshot- India H1 FY24
Business Snapshot- India H1 FY24 Revenue Operating EBITDA* PAT Post NCI (In INR Cr) (In INR Cr) (In INR Cr) 284 91 1772 219 1408 69 15.6% 16.1% 4.9% 5.1% FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 Operational Performance [FY24 H1 | (FY23 H1)] Total Capacity Beds ALOS (Days) ARPOBD (INR) 4,855 |
Slide 32: India Financial Summary- Profitability Statement FY23
India Financial Summary- Profitability Statement FY23 Particulars (In INR Cr) FY21 FY22 FY23 Y-O-Y Revenue from Operations 1,654 2,384 2,983 25% Material Consumption 443 666 779 Doctors’ Cost 376 499 647 Employee cost (excl. doctors) 357 443 581 Other expenses 319 421 523 EBITDA (excl. other income)
Slide 33: India Financial Summary- Profitability Statement H1 FY24
India Financial Summary- Profitability Statement H1 FY24 Particulars (In INR Cr) FY23 H1 FY24 H1 Y-O-Y Revenue from Operations 1,408 1,772 26% Material Consumption 369 455 Doctors’ Cost 308 383 Employee cost (excl. doctors) 276 357 Other expenses 236 293 Operating EBITDA 219 284 30% Variable O&M fee
Slide 34: Balance Sheet- Key Numbers
Balance Sheet- Key Numbers Key Financial Numbers As on March 2021 As on March 2022 As on March 2023 Gross Debt 399 431 597 Cash and Cash Equivalents (Less) 93 112 87 Net Debt (Gross Debt less Cash and Cash Eq.) 306 319 510 Lease Liabilities - INDAS116 346 444 533 Fixed Assets (including Goodwill & E
Slide 35: Well prepared in over years to create India-focused listed entity
Well prepared in over years to create India-focused listed entity Fortified Team Developed the leadership by hiring the best talents to lead India business Significant Expansion of facilities and capacity beds Significant capex incurred to enhance capacity within India having 19 hospitals including
Slide 36: Thank You
Thank You Investor Relations: investors@asterdmhealthcare.com
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