Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — UBS India Annual Conference 2023
38 slides from Max Healthcare Institute's conference presentation, Nov 7, 2023
Slide 1: Presentation for Investor Conference
November 7, 2023 Listing Department, Listing Department, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai – 400 051 Mumbai – 400 001 Symbol: MAXHEALTH Scrip Code: 543220 Sub.: Pre
Slide 2: Investor Presentation
Investor Presentation November 7, 2023
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “presentation”) contains selected information about the activities of Max Healthcare Institute Limited’s (“Max Healthcare”/“MHIL”/“MHC”/”Company”) as at the date of the presentation. None of MHIL, its directors, promoter, or affiliates, n
Slide 4: Content
Content Company Overview 04 Key Growth Drivers 13 Financial Highlights 22 Appendix 29 3
Slide 5: Company Overview
By MAX Healthcare Company Overview
Slide 6: India's second largest hospital chain by revenue, EBITDA and market capitalisation
Max Healthcare: India’s second largest* hospital chain in terms of revenue, EBITDA and market capitalisation Current capacity ~3,530 beds 17 ~82% ~75% NCR Facilities Beds in metros H1 FY24 Occupancy 402 Shalimar Bagh 516 402 387 BLK Patparganj Vaishali 13% 41% ~36% Eqova Revenue CAGR^ EBITDA CAGR^ H
Slide 7: Vision: To be the most well-regarded healthcare provider in India
Vision: To be the most well-regarded healthcare provider in India To be the most well regarded healthcare provider in India committed to the highest standards of clinical excellence and patient care supported by latest technology and cutting edge research Quaternary care facilities World class infra
Slide 8: Journey so far
Journey so far Executed O&M Agreement Dr. B L Kapur Memorial Dr. Balabhai Nanavati • Radiant-Max Healthcare merger for the first asset light Hospital, Rajendra Hospital, Mumbai(1) and listing on BSE and NSE model in Dwarka, Delhi for Place(1) • Discontinuation of Max Multi 300+ beds(1) Speciality Ce
Slide 9: Leading clinically comprehensive hospital chain with research and academics foundation
Leading clinically comprehensive hospital chain with excellent research and academics foundation High end Complex procedures performed quaternary care facilities Robotic Cardiac Neuro Orthopedic Oncology Transplants(1) surgeries procedures(2) surgeries(3) surgeries(4) surgeries(5) Est. Annual Count*
Slide 10: Dominant presence in the most attractive markets (1/2)
Dominant presence in the most attractive markets (1/2) Low bed density, higher per capita income, higher ARPOB and rising insurance penetration make Delhi and Mumbai attractive avenues for growth High demand-supply gap in Delhi NCR & Mumbai… …coupled with rising insurance penetration Total beds per
Slide 11: Dominant presence in the most attractive markets (2/2)
Dominant presence in the most attractive markets (2/2) Being metro-centric also positions MHC well to capitalise on medical tourism India’s foreign medical tourism industry has Break-up of medical tourists* by 18 company & partner-owned Patient Assistance been growing major country of origin Centres
Slide 12: Strategy going forward
Strategy going forward Build on Optimise Existing Clinical Expertise Infrastructure Attract best-in-class talent Payor mix, Capacity to focus on industry Utilisation, ALOS and leading patient outcomes Procedure Mix Focus on Capital Expand Bed Light Adjacencies Capacity Max Lab and Brownfields and Ma
Slide 13: Best in class performance parameters
Best in class performance parameters ARPOB(1) Occupancy (INR/OBD) (‘000) (%) 75 67 75% 76% 74% 59 58 54 60 63% 64% 62% 63% 67% 64% 52 48 45 Operating parameters Max Healthcare Apollo Hospitals Fortis Max Healthcare Apollo Hospitals Fortis (Hospitals Business) (Hospital Business) (Hospitals Business)
Slide 14: Key Growth Drivers
By MAX Healthcare Key Growth Drivers
Slide 15: Strong financial profile to support future growth
Multiple avenues for future growth • Focus on tower specialities & case mix 1 Optimising Existing Strong cash generation from 2 Infrastructure • Increase utilization & improve process efficiencies operations • Optimize payor mix INR 697 Cr in H1 FY24 • ~2,600 beds addition via brownfield expansion –
Slide 16: Growth opportunity in existing facilities
2 Growth opportunity in existing facilities Optimising payor mix Bed share • Push for reduction in institutional business in order to cater to 31.3% 29.2% 28.5%* 36.5% 34.2% demand from preferred channels, driven by - 5.0% 5.5% – Steady pace of organic growth in Self Pay, TPA and corporate 2.8% 2.0%
Slide 17: Existing valuable land bank to enable addition of 4,000+ beds
3 Existing valuable land bank to enable addition of 4,000+ beds, with ~2,600 beds coming over next 4 years Indicative timelines for completion of expansion projects Dwarka, South-west Delhi 150 7,464 Gurugram## 200 Saket Complex (Smart) 500 Mohali 500 Nanavati Hospital* Saket Complex (Vikrant) 250 P
Slide 18: Strong track record of successful acquisitions
3 Strong track record of successful acquisitions • Management team has done multiple successful acquisitions including BLK, Nanavati and Max Healthcare • Adequate headroom driven by strong free cash flows and low leverage to pursue M&A even after spend on brownfield and greenfield expansions Case st
Slide 19: Status of Expansion Projects
3 Status of Expansion Projects Dwarka – 300 beds Mohali – 190 beds Nanavati – 329 beds in Phase I • Application of OC has been submitted in October. • All statutory approvals to start the construction have • Excavation and raft work are complete. • Majority of the MEP and interior work are complete.
Slide 20: Develop asset light adjacencies: Max Lab – Non-captive pathology SBU
4 Develop asset light adjacencies: Max Lab – Non-captive pathology SBU Operational footprint Organised diagnostics players to grow faster than overall Diagnostic Industry (as of Sept. 30, 2023) India Diagnostic market to see steady growth Indian Diagnostic Industry mix by type of providers (INR Bn)
Slide 21: Develop asset light adjacencies: Max@Home
4 Develop asset light adjacencies: Max@Home – Amongst the largest homecare providers in the country Indian home healthcare is under-penetrated with only ~3.6% of total health spending on home Growth Drivers healthcare vis-à-vis ~8.3% in the US Home healthcare solutions ~40% Indian home healthcare ma
Slide 22: Max MyHealth – Proprietary digital platform
5 Max MyHealth – Proprietary digital platform enabling best-in- class omnichannel healthcare experience ‘Max MyHealth’ offering new age experience for patients and doctors • Single App for all types of consults (physical and virtual) for both doctors and patients; instant consults with a general pra
Slide 23: Financial Highlights
By MAX Healthcare Financial Highlights
Slide 24: Network P&L Statement: Q2 FY24
Network P&L Statement: Q2 FY24 Figs in INR Cr Q2 FY23 Q1 FY24 Q2 FY24 Amount % NR Amount % NR Amount % NR Gross revenue 1,567 1,719 1,827 Net revenue 1,482 100.0% 1,629 100.0% 1,732 100.0% Direct costs1 575 38.8% 650 39.9% 667 38.5% Contribution 907 61.2% 979 60.1% 1,065 61.5% 2 Indirect overheads 4
Slide 25: Network P&L Statement: H1 FY24
Network P&L Statement: H1 FY24 Figs in INR Cr FY21 FY22 FY23 H1 FY24 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue1 3,881 5,509 6,236 3,546 Net revenue 3,629 100.0% 5,218 100.0% 5,904 100.0% 3,361 100.0% Direct costs 1,508 41.6% 2,103 40.3% 2,304 39.0% 1,317 39.2% Contribution 2,121
Slide 26: Memorandum Consolidation of Network P&L: H1 FY24
Memorandum Consolidation of Network P&L: H1 FY24 Figs in INR Cr MHIL & its Partner Healthcare Facilities ("PHF") Financials MHC Network subsidiaries & Eliminations Silos (IGAAP Unaudited)* (Consolidated) & (Certified by an Ind AS Balaji GM Modi Devki Devi IND AS Adjustment (2) ICA) Unaudited Society
Slide 27: Network Balance Sheet
Network Balance Sheet1 (Includes Managed and Partner Healthcare Facilities) Figs in INR Cr Sep 2022 Particulars Mar 2023 Sep 2023 7,462 Shareholders' Equity 8,070 8,623 815 Gross Debt 682 606 446 Deferred / Contingent Consideration Payable2 440 463 144 Put Option Liability3 150 84 137 Lease Liabilit
Slide 28: Notes to Network Consolidated Financials
Notes to Network Consolidated Financials 1. Max Healthcare Institute Limited (“MHIL”), its subsidiaries and deemed separate entities (i.e. silos for managed healthcare facilities) constitute MHIL Group under IND AS 110. MHIL Group also has long term contracts with certain societies, who own and oper
Slide 29: Thank You
By MAX Healthcare Thank You
Slide 30: Appendix
Appendix 1. ESG & CSR Updates 2. Network Structure 29
Slide 31: Appendix: ESG Highlights, CSR Initiatives
Appendix 1 ESG Highlights CSR Initiatives 30
Slide 32: ESG Highlights
ESG Highlights Environment 39% water recycled out of total water Water consumption decreased to 0.98 33.3% share of renewable energy in total energy mix consumption in FY 2023, up from 35.9% in FY kilolitres per bed in FY 2023 from 1.08 2022 kilolitres per bed in FY 2022 ISO 14001 certification rece
Slide 33: CSR Initiatives
CSR Initiatives Initiatives undertaken on Water Sustainability, Nutrition and Education Water Rejuvenation Support Govt. of India’s Ni-kshay Mitra Donation of bus for Delhi Police in Ghaziabad, UP Programme Public School Focus areas for FY24 and beyond: Education and Water Sustainability Education W
Slide 34: Network structure
Appendix 2 Network structure 33
Slide 35: Network Holding Structure
Network Holding Structure (as of September 30, 2023) Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Max Panchsheel Max Healthcare Medical Service Agreement Immigration centre (Lajpat Nagar) Institute Limited Max Saket (West) Devki Devi Society SBUs (MIME, Max@Home) (M
Slide 36: List of Network Healthcare Facilities
List of Network Healthcare Facilities Name Location Description Max Super Speciality Hospital, (West Block) Saket Delhi Hospital Max Super Speciality Hospital, (East Block) Saket Delhi Hospital Max Smart Super Speciality Hospital, Saket Delhi Hospital BLK-Max Super Speciality Hospital, Rajendra Plac
Slide 37: Definitions
Definitions Term Description ALOS Average Length of Stay: discharged patients stay in the hospital, basis admission and discharge time Average Revenue per Occupied Bed; Gross revenue divided by the occupied bed days; excludes revenue from Covid-19 ARPOB vaccination & related antibody tests and Max L
Slide 38: About Us
About Us Max Healthcare Institute Limited (MHIL) is India’s leading provider of healthcare services. For further information, please visit It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education. www.maxhealthcare.in MHIL has major c
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