Shalby Ltd. · NSE:SHALBY
Shalby — Q2 FY2022 Earnings Presentation
35 slides from Shalby's earnings presentation, Oct 28, 2021
Slide 1: Shalby Multi-Specialty Hospitals – Exchange Filing Cover Letter
® SHALBY MULTI-SPECIALTY - HOSPITALS - October 28, 2021 Shalby/SE/2021-22/72 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 Through: Through : http://listing.bseindia.com http
Slide 2: Fit for the Future – Q2 FY2022 Investor Presentation
FIT FOR THE INVESTOR PRESENTATION FUTURE Q2 FY2022 27 years of serving r+7 .El. SHALBY MULTl-SPECIAL TY - HOSPITALS - www.shalby.org
Slide 3: Investment Case: Core Business
INVESTMENT CASE SHALBY Core Business Q2 FY22 Revenues +26% compared to 3 years ago 1/3 MUL Tl-SPECIAL TY - HOSPITALS - H1 FY22 Performance Non Covid Quarterly Performance Non-Covid Total Patients Count In Patient Count (Nos.) Surgeries Count Growth + 21% 20,542 9,003 83% 166% 1,21,829 11,237 in H1 F
Slide 4: Investment Case: Hospital, Implant and Franchise Businesses
INVESTMENT CASE SHALBY Hospital, Implant and Franchise businesses all on high growth trajectories and delivering synergistic value 2/3 MUL Tl-SPECIAL TY - HOSPITALS - 1 Shalby Group ▪ Hospital, Implant and Franchise businesses all on high growth trajectories and delivering synergistic value ▪ Experi
Slide 5: Investment Case: Brand, EBITDA Margins and Valuation Metrics
INVESTMENT CASE SHALBY Shalby brand and value add services reflected in ~20% EBITDA margins and double digit ROCE 3/3 MUL Tl-SPECIAL TY - HOSPITALS - Consistent Performance in Last 5 Years Key Valuation Parameters Key Valuation Metrics 26 Oct 2021 5,042 Share Price (in Rs) 161.8 Total Revenue 4,715
Slide 6: Agenda
AGENDA SHALBY MUL Tl-SPECIAL TY - HOSPITALS - 01 Q2 FY2022 PERFORMANCE HIGHLIGHTS 02 SHALBY INDUSTRY & STRATEGY 03 Q2 FY2022 PERFORMANCE TRENDS 04 SUSTAINABILITY INITITAIVES 05 HOSPITAL BUSINESS UPDATE 5
Slide 7: Q2 FY2022 Performance Highlights
Q2 FY2022 PERFORMANCE HIGHLIGHTS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Total Income up by 53.5%, EBITDA up by 10.1% driven by increase in surgery count by 144.1% on y-o-y basis In Patient Count (Nos.) Surgeries Count 10,608 6,190 Total Income Operating EBITDA 7,573 in Q2 FY21 2,536 in Q2 FY21 Rs. 1
Slide 8: Q2 FY2022 Performance Highlights: Surgery Count Recovery
Q2 FY2022 PERFORMANCE HIGHLIGHTS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Surgery count registered strong recovery from 2,536 in Q2 FY21 to 6190 in Q2 FY22 Exceeding the pre-covid period average count of 5000 surgeries per quarter • During the quarter, In patients count increased 40% y-o-y primarily d
Slide 9: Non-Covid Business Remains Strong
Q2 FY2022 PERFORMANCE HIGHLIGHTS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Shalby non-covid business remain strong and continues to grow with the normalization of Covid cases Non-Covid Total Patients Count Covid Patients Count Growth +21% 1,18,226 1,21,829 5,361 1,00,595 79,289 66,755 67,794 2,836 2,46
Slide 10: Hospital Group Performance by Maturity
Q2 FY2022 HSOPTIAL GROUP PERFORMANCE SHALBY MUL Tl-SPECIAL TY - HOSPITALS - All hospitals, at different maturity stages, continues to deliver strong performance Hospital - 10+ Years Hospital - 5-10 Years Hospital - 0-5 Years 228 842 892 Total Beds Total Beds Total Beds Rs. 481 mn 29% Rs. 550 mn 34%
Slide 11: Orthopedics Implant Business Update
SHALBY CONSENSUS – Q2 FY2022 @nsensus ORTHOPEDICS Dedicated management committed to turnaround implant business INR • Implant business has been operationalized from 14th May, 2021 Particulars USD (‘000) (‘000) • Seamless onboarding of Mr. Sushobhan Dasgupta and Mr. Daniel Hayes along with other lead
Slide 12: Management Perspective
MANAGEMENT PERSPECTIVE SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Commenting on strategy, Mr. Sushobhan Commenting on performance, Mr. Shanay Shah, Dasgupta, Vice Chairman and Global President: President Said: “Shalby delivered strong performance during the quarter backed by growth “In Q2FY22 the health
Slide 13: Covid-19 Vaccination Drive
COVID-19 VACCINATION DRIVE SHALBY MUL Tl-SPECIAL TY - HOSPITALS - “Shalby stands with the nation amidst the ongoing health pandemic and is committed to the cause of vaccination for the larger good of the society. We treat this as our social and moral responsibility and will ensure no additional cost
Slide 14: Strengthening and Diversifying Service Offerings
STRENGTHENING AND DIVERSIFYING SERVICE OFFERINGS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Digital Spine Operation Room at SG Shalby Hospitals, Launch of Kidney Transplant Centre at Mohali, Indore and Ahmedabad Ahmedabad ▪ Started Kidney Transplant Centre at Shalby Mohali in collaboration with Aykai Sh
Slide 15: Recent Developments
RECENT DEVELOPMENTS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Shalby launches first Orthopedic Franchise Owned Franchise Shalby Institute of Rehabilitation Sciences at Shalby Krishna Operated (FOFO) in the country at Udaipur Hospitals, Ahmedabad Unique and innovative inpatient franchise model, deliveri
Slide 16: Awards and Recognitions
AWARDS AND RECOGNITIONS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - “Best Hospital, Orthopedic, National Level” “Best Homecare Company, National Level” “Jaipur Hospital Awards” SHALBY IIUL Tl-SPECIAL TY SHALBY - HOSPITALS - MULTl-SPECIALTY - HOSPITALS - Shalby Multi-Specialty Hospitals awarded as the Sha
Slide 17: Indian Medical Device and Implants Industry
INDIAN MEDICAL DEVICE AND IMPLANTS INDUSTRY SHALBY MUL Tl-SPECIAL TY - HOSPITALS - The Medical Device Market expected to grow 3x in next 10 years on back of sustained growth drivers Indian Medical Device Market Size $Bn Joint Replacement Surgeries Knee Replacement Surgeries In India $Bn In India (00
Slide 18: Expanding Footprint and Diversifying Business
EXPANDING FOOTPRINT AND DIVERSIFYING BUSINESS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Shalby with its strong brand and expertise in Arthroplasty is well positioned to meet the high growth market in the longer run Shalby is a Leader in Joint Replacement Shalby Orthopedics Centre of • rh with 15% Marke
Slide 19: Q2 FY2022 Performance Trends: Income, EBITDA, PBT, PAT
Q2 FY2022 PERFORMANCE TRENDS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Total Income (Rs. Mn) EBITDA (Rs. Mn) and Margin 1,828 28.0% 24.5% 24.0% 24.4% 20.1% 1,717 1,440 1,317 1,118 446 314 323 346 345 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 PBT (Rs. Mn) and Margin
Slide 20: Performance Trends: Patients, ARPOB, Surgery Count
Q2 FY2022 PERFORMANCE TRENDS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - In Patients count was primarily driven by increase in Non-Covid patients. Surgery count registered a strong rebound with the normalization of Covid cases resulting in higher ARPOB In Patients Count Day Care Patients Count Out Patien
Slide 21: Performance Trends: Occupancy, ALOS, Revenue Mix
Q2 FY2022 PERFORMANCE TRENDS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - No of Bed Occupied Occupancy Rate* 723 59% 537 517 45% 489 481 41% 40% 43% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Average Length of Stay (ALOS) Revenue Mix by Care 5.94 6.10 5.52 11% 10% 12%
Slide 22: Performance Trends: Revenue by Specialty and Payer Mix
Q2 FY2022 PERFORMANCE TRENDS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Revenue by Hospital Specialty 46% 37% . .. . .. 16% 13% 13% - -- -- - 11% 9% 10% 8% 8% 8% 5% 4% 5% 4% 3% T T Arthroplasty Critical Care & Orthopaedic Oncology Cardiac Science Neurology Nephrology Others General Medicine ■ Q2 FY21 ■
Slide 23: Performance Trends: Income to EBITDA Bridge
Q2 FY2022 PERFORMANCE TRENDS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Total Income to EBITDA Bridge 20.1% 28.0% 24.5% 24.0% 24.4% 9.7% •EBITDA % 7.4% 12.6% 7.3% 12.2% 7.7% 11.7% 7.0% 11.0% 11.1% •Other Expenses % • Employee Benefit Expenses % 56.1% 57.9% • Purchase and Change in Inventory % 55.0% 50.3
Slide 24: Operational Metrics Q2 FY22
Q2 FY2022 PERFORMANCE HIGHLIGHTS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Operational Metrics Q2 FY22 Q2 FY21 Y-o-Y Growth Q1 FY22 Q-o-Q Growth In Patient Count 10,608 7,573 40.1% 9,934 6.8% (Nos.) Day Care Patient Count 4,931 5,026 (1.9)% 5,108 (3.5)% (Nos.) Out Patient Count 1,06,304 56,619 87.8% 58
Slide 25: Performance Highlights – Standalone Financials
Q2 FY2022 PERFORMANCE HIGHLIGHTS SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Particulars (in Rs. Million) Q2 FY22 Q2 FY21 Y-o-Y Growth Q1 FY22 Q-o-Q Growth Revenue from Operations 1,691 1,093 54.7% 1,801 (6.1)% Other Income 26 25 4.0% 27 (3.0)% Total Income 1,717 1,118 53.5% 1,828 (6.1)% Expenses COGS 1,
Slide 26: Performance Highlights – Consolidated
Q2 FY2022 PERFORMANCE HIGHLIGHTS - CONSOLIDATED SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Particulars (in Rs. Million) Q2 FY22 Q2 FY21 Y-o-Y Growth Q1 FY22 Q-o-Q Growth Revenue from Operations 1,816 1,156 57.1% 1,924 (5.6)% Other Income 28 24 19.4% 25 12.0% Total Income 1,844 1,180 56.3% 1,949 (5.4)% E
Slide 27: Capital Structure and Key Ratios – Consolidated
Q2 FY2022 CAPITAL STRUCTURE AND KEY RATIOS - CONSOLIDATED SHALBY MUL Tl-SPECIAL TY - HOSPITALS - Net cash positive balance sheet to support future growth plans. Double digit ROCE of 13.1% on H1 FY22 annualized basis Well capitalized balance sheet for future strategic investments Return on Capital Em
Slide 28: Sustainability Initiatives: ESG Mindset, Community Connect
SUSTAINABILITY INITIATIVES ESG Mindset Community Connect “We at Shalby are embracing sustainability to drive new values to our business” ESG Mindset Community Connect ▪ We at Shalby are embracing sustainability to drive new values to ▪ Under this on every Thursday we invited various samaj Workplace
Slide 29: Sustainability Initiatives: Environmental Responsibility
SUSTAINABILITY INITATIVES “We recognize the values inculcated in environmental responsibility and resource efficiency, accordingly our operations are infused with sustainable practices, ensuring a preservative footprint in the environment.” “Save 5-15% of water per tap per year “Saving ~3% of electr
Slide 30: Sustainability Initiatives: Workforce and Wellness
SUSTAINABILITY INITATIVES “Our aim is to groom the best industry talent and build a competent workforce for supporting the healthcare industry” • As one of the biggest chain of hospitals in • Shalby, continue to focus on training and western India, we recognize the importance of developing employees
Slide 31: Hospital Development Update
HOSPITAL DEVELOPMENT UPDATE Santa Cruz Development Update Nashik Development Update Business Model: Revenue Sharing Business Model: Revenue Sharing Asset Light Model Bed Capacity: 175 Bed Capacity: 146 Operating and Management Term: 30 + 30 years Operating and Management Term: 30 years Operationaliz
Slide 32: Hospital Business Update: SG and Vijay Groups
HOSPITAL BUSINESS UPDATE Catchment: Ahmedabad and surrounding areas of Gujarat, Commencement 2007 | 13 Years Rajasthan and Mumbai • Medical technology up gradation - S8 Navigation system which is No. of beds / Occupancy 201 | 34% 3rd installation in Gujarat state. This will enhance more accuracy SG
Slide 33: Hospital Business Update: Surat, Vapi, Indore
HOSPITAL BUSINESS UPDATE Commencement 2017 | 3 Years Catchment: South Gujarat, North Maharashtra (including Mumbai) No. of beds / Occupancy 243 | 49% Surat • Performed highest number of Neuroscience procedures • Launched Onco and Cardiac vertical by recruiting Onco physician Surat Group Type of Arra
Slide 34: Hospital Business Update: Mohali, Jaipur, Zynova
HOSPITAL BUSINESS UPDATE Commencement 2017 | 2+ Years Catchment: Punjab, Uttrakhand, Haryana Mohali No. of beds / Occupancy 145 | 31% • Touched 130 Arthroplasty in Sept’21 • Major specialties like arthroplasty, urology and medicine showing Type of Arrangement Freehold recovery in Q2 FY2021 • New doc
Slide 35: Disclaimer and Contact Details
DISCLAIMER and CONTACT DETAILS 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