Max India Ltd · NSE:MAXIND
Max India — Investor Presentation (September 2020)
58 slides from Max India's investor presentation, Sep 15, 2020
Slide 1: Max India Limited Investor Presentation
Max India Limited Investor Presentation September 2020 www.maxindia.com
Slide 2: Max Group Vision
Max Group Vision “To be the most admired corporate for service excellence” • Positive social impact • Culture of Service Sevabhav • Helpfulness • Mindfulness • Expertise • Entrepreneurship Excellence • Dependability • Business performance • Transparency • Respect Credibility • Integrity • Governance
Slide 3: Max Group – Overview
Max Group – Overview Max Group - Sponsors 26.0% 40.9% 49.7% Companies Holding Senior Living and Real Estate, Manufacturing Life Insurance Business & Other businesses Skilling businesses 51% 72.52%^ 100% Companies Operating 100% • Assisted Care Services o Care Homes o Care at Home 100% • Residences f
Slide 4: Max Group has created value through its entrepreneurial spirit
Max Group has created value through its entrepreneurial spirit… First wave: Early years, Second wave: Group reinvented Third wave: Corporate restructuring to Started with Manufacturing from a B2B conglomerate to a B2C unlock value & Portfolio Rebalancing Businesses (1982 – 2000) company (2000 – 2014
Slide 5: In collaboration with Marquee Strategic and Financial Investors
… in collaboration with Marquee Strategic and Financial Investors … Current JV Partners Investors Past JV Partners 5
Slide 6: Delivering 24%+ returns for its shareholders over this journey
… Delivering 24%+ returns for its shareholders over this journey 24%+ returns for Max Group shareholders since inception (last 30 yrs) 22,500 824 CAGR 18,000 16% 13,500 CAGR since 824 inception 24% CAGR 23% 21,258 9,000 CAGR 13,190 18% 4,500 175 CAGR 19% CAGR 4,818 61% 167 175 5 698 1,859 - 1989 200
Slide 7: Max Group Overview
Max Group Overview 1 USD 2.5 billion Revenues… 4 Mn Customers… 16,000 Employees… ~46,000 Agents 2 Strong growth trajectory even in challenging times; a resilient & diversified business model 3 Steady revenue growth and cost rationalization leads to strong financial performance 4 Well established boa
Slide 8: Max India – Board of Directors
Max India – Board of Directors Executive Chairman of Antara Senior Living. She Chairman and Founder Founder and Chairman of Max Group. Awarded Director is the youngest member to join the board of Max Mr. Analjit Singh with highest civilian honor, the Padma Bhushan Mrs. Tara Singh Vachani India as a
Slide 9: Max Group – Senior Management
Max Group – Senior Management Mohit Talwar • Vice-Chairman, Max Group • Managing Director, Max Financial Services • Managing Director, Max India Limited • Vice-Chairman, Max Ventures and Industries Ltd Prashant Tripathy Sahil Vachani • Managing Director & CEO, Max Life Insurance • MD & CEO, Max Vent
Slide 10: High pedigree of long-term investor base
High pedigree of long-term investor base Shareholding concentrated with Marquee Investors ▪ Ward Ferry Shareholding Pattern as on 15th Jun 20 ▪ Locus Investments (Ashish Dhawan) ▪ Briarwood Capital Public 18.4% ▪ International Finance Corporation ▪ Doric Capital Promoter 40.9% ▪ New York Life Insura
Slide 11: Max India invested Rs 400 Cr in Antara and has Rs 500 Cr of liquid and other assets
Max India invested Rs 400 Cr in Antara and has Rs 500 Cr of Liquid and other assets (based on invested capital#) Senior Living – Residences for Seniors New Businesses (Rs. 12 Cr) Other Assets (Rs. 500 Cr) Invested Capital* (Rs 370 Cr) (Care Home and Care at Home) Antara 1.0 - Dehradun (Asset Heavy)
Slide 12: Antara Senior Living Limited
MAX INDIA LIMITED ANTARA SENIOR LIVING LIMITED Building a scalable & profitable play in the senior care industry www.antaraseniorliving.com 12
Slide 13: Overall Structure
Overall Structure The Antara story: Executive Summary Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model Assisted Care Services Residences for Seniors Overall summary: Creating shareholder value over next 5 years 13
Slide 14: Executive Summary
Executive Summary 1. Senior care is a mega trend in India with USD 10-12 Bn market across value pools. There is a large unmet need in the target segment which is currently underserved. Proof of concept exists globally, with emerging models in India. 2. Antara, a Max Group Company is at a vantage pos
Slide 15: Overall Structure
Overall Structure The Antara story: Executive Summary Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model Assisted Care Services Residences for Seniors Overall summary: Creating shareholder value over next 5 years 15
Slide 16: Senior care is an emerging mega-trend in India
Senior-care is an emerging mega-trend in India with USD 10 bn+ market across value pools, but is highly underserved currently Living Home care Home concierge Market place model Annual revenue Tailwinds driving growth of senior care Senior care value pools (except core healthcare), USD billion potent
Slide 17: Assisted care businesses trading at attractive multiples
Assisted care businesses in India and Internationally are trading at attractive multiples Indian Homecare Transaction multiples Rs Cr Company Year Valuation TTM Revenue EV/TTM Revenue Investors High Sep’15 300 42 7x Accel, IFC, Qualcomm & Ventureast Apr’16 30 6 5x SAIF Partners Apr’17 270 50 5.5x Qu
Slide 18: Antara's vision for seniors and their families
Antara's vision is to be the most loved and trusted brand for seniors and their families, by helping seniors improve and enrich their quality of life Near -term vision (next 5 years) Overall ecosystem Longer -term vision (5 -10 years) through partnerships Specialized and Form partnerships to provide
Slide 19: Antara has an eminent Board to guide the Management team
Antara has an eminent Board to guide the Management team • Mr. Analjit Singh is the Founder & Chairman Emeritus, Max Group and all its group companies. An industry statesman, he was awarded the Padma Bhushan in 2011. He is also on the Board of Sofina NV/SA, Belgium, and till Oct 18 was the Chairman
Slide 20: Antara has an eminent Board to guide the Management team
Antara has an eminent Board to guide the Management team • Mr. Rahul Khosla, is a seasoned business leader with deep management experience, broad leadership skills and wide business perspectives over the last 30 years of working in India and globally. He has worked across several multinational notab
Slide 21: Supported by a strong Management team to execute the growth plan
Supported by a strong Management team to execute the growth plan • Mrs. Tara Singh Vachani is the Executive Chairman of Antara Senior Living. She is the youngest member to join the board of Max India as a Non-Executive Director. With an extensive education and experience across the world, and as a k
Slide 22: Supported by a strong Management team to execute the growth plan
Supported by a strong Management team to execute the growth plan • Mr. Vaibhav Gupta leads the Strategy and Growth Alliances function at Antara, Vaibhav plays an active role in driving the overall business strategy, forging new growth alliances, strengthening governance and creating a strong capabil
Slide 23: Overall Structure
Overall Structure The Antara story: Executive Summary Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model Assisted Care Services Residences for Seniors Overall summary: Creating shareholder value over next 5 years 23
Slide 24: Antara Assisted Care Services integrated ecosystem
Antara Assisted Care Services shall offer an integrated ecosystem to help maximise customer share of wallet and yield cost synergies “Anchor” Care Homes and Memory Care Care at Home services Homes for seniors Offered to seniors around a 15-20 km radius of an anchor care home Residences for Key servi
Slide 25: Overall Structure
Overall Structure The Antara story: Executive Summary Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model Assisted Care Services Care Homes Care at Home Partnerships and Alliances Residences for Seniors Overall summary: Creating shareholder value over next 5 years 25
Slide 26: Antara Care Homes: more than just a home away from home
Antara Care Homes: We offer much more than just a home away from home ❖ An integrated and seamless ecosystem that provides care, comfort and companionship to seniors ❖ We offer support to seniors with ambulatory, neurological, ageing related conditions and those who need assistance in daily activiti
Slide 27: Antara Care Homes: Differentiators – Key pillars of wellness
Antara Care Homes: Differentiators – Key pillars of wellness Holistic Wellness Physical Wellness Emotional & Intellectual Environmental Spiritual Wellness Social Wellness Wellness Wellness • Nurse calls buttons Senior specific design • Awakening Sessions • 24X7 nursing care, interventions : • Engagi
Slide 28: Care Homes: Long term care and Short-term care
Antara Care Homes: Product Offerings - Long term care and Short-term care Long term care • Designed for Seniors who need constant medical and nursing supervision, as well as help in managing other aspects of their daily lives • Comes with a wide array of services like nutritionally assisted food, cu
Slide 29: Gurgaon Care Home is ready for launch in July [1/2]
Gurgaon Care Home is ready for launch in July [1/2] Bedroom 29
Slide 30: Gurgaon Care Home is ready for launch in July [2/2]
Gurgaon Care Home is ready for launch in July [2/2] Dining Area 30
Slide 31: Overall Structure
Overall Structure The Antara story: Executive Summary Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model Assisted Care Services Care Homes Care at Home Partnerships and Alliances Residences for Seniors Overall summary: Creating shareholder value over next 5 years 31
Slide 32: Antara Care at Home brings the health care ecosystem home
Antara Care at Home brings the whole health care ecosystem to the comfort of your home Every aspects of our service reflects the guiding principles behind our endeavours to nurture Convenience, Clinical Quality & Trust Convenience Clinical Quality Trust • Superior health • Care plan curated in • Con
Slide 33: Antara Care at Home: Our Offerings [1/3]
Antara Care at Home: Our Offerings [1/3] • Comprehensive coverage: A 24-hour coverage inclusive of nursing care , patient care-giver, medical equipment and regular team leader and clinician visits • Infrastructure set up: Room set-up adhering to critical care protocols like fumigation, deep cleaning
Slide 34: Antara Care at Home: Our Offerings [2/3]
Antara Care at Home: Our Offerings [2/3] • Flexible coverage: 12-hour and 24-hour nursing cover with weekly team leader assessment to monitor progress • Trained team: Certified team with specific training on managing elders • Continuum of care: Care plan coordinated with treating clinician to monito
Slide 35: Antara Care at Home: Our Offerings [3/3]
Antara Care at Home: Our Offerings [3/3] • Comprehensive services: Only facility to provide check-in rehab, outpatient and at-home services • Trained team: Well trained and experienced team of therapists, supported by high quality equipment at the centre as well as at home • Continuity of care: Care
Slide 36: Overall Structure
Overall Structure The Antara story: Executive Summary Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model Assisted Care Services Care Homes Care at Home Partnerships and Alliances Residences for Seniors Overall summary: Creating shareholder value over next 5 years 36
Slide 37: Partnerships and Alliances key to Antara's long term vision
Partnerships and Alliances will be key in completing Antara’s long term vision to create an integrated ecosystem for Seniors Residences Care at Partnership & Care Homes for seniors Home Alliances Products Services Inorganic/ M&A • Medical/ mobility aids & equipment • Travel & Leisure • New city expa
Slide 38: Care Homes and Care at Home potential INR 500+ crore revenues business
Care Homes and Care at Home have the potential to become an INR 500+ crore revenues business with 12-15% EBITDA in 5 years Year 5 financials ▪ Revenues : INR 500+ Cr ▪ EBITDA Margin : 12-15% (EBITDA positive from year 3) ▪ Profit Margin : 8-10% (PBT positive from year 4) ▪ Peak cumulative capital re
Slide 39: Care Homes and Care at Home – Centre Economics
Care Homes and Care at Home – Centre Economics Year 5 financials (Care Homes) Year 5 financials (Care at Home) ▪ Average Revenues : INR 6-7 Cr ▪ Average Revenues^ : INR 4-5 Cr ▪ EBITDA Margin : 20%+(EBITDA positive from year 2) ▪ EBITDA Margin : 20%+(EBITDA positive from year 1) ▪ Capex : INR 2-2.5
Slide 40: Overall Structure
Overall Structure The Antara story: Executive Summary Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model Assisted Care Services Residences for Seniors Overall summary: Creating shareholder value over next 5 years 40
Slide 41: Residences for Seniors vertical presents huge potential in India
Residences for Seniors vertical continues to present a huge potential in India There is huge demand for Residences for Seniors across India… Industry facts… ▪ 30+ players in the senior living space with top 6 having over 45 communities ▪ Top players (seniors served): – Columbia Pacific Communities (
Slide 42: Our Journey so far
Our Journey so far… 2010 2011-12 2013-16 2017-18 2019-20 - Idea came - Antara - Antara - Dehradun - 63% of into Senior brand Community apartments signed being thinking Living launched operationalised up at Dehradun through India became - Launch of - Team started - 2nd Community and its 100% experien
Slide 43: Antara Dehradun: Our first community
Antara Dehradun: Our first community • Spread across 13.5 pristine acres • 8 Residences with 197 apartments • Apartments ranging from 1400 – 6600 Sft. • Over 60,000 sq.ft Clubhouse with 7 activity zones • Lifestyle and Lifecare offerings at Antara • Lifestyle offerings: - The Antara Club - Convenien
Slide 44: Key Performance Metrics: Dehradun
Key Performance Metrics: Dehradun Community size (Acre) 14 No of Apartments (#) 197 Apartments Sold Net (#) 1291 Sales Value (INR Cr) 3941 Collections (INR Cr) 3431 Operations income (INR Cr) 112 Resident Satisfaction Score (%) 913 1 As on 14th Sep 2020 2 Income reported in FY20 3 Basis RSAT survey
Slide 45: Residences for Senior 2.0 – learnings from Dehradun
Residences for Senior 2.0 – curated out of learnings from Dehradun From To • Focus on core competencies, Business • Buy, build, sell, operate - Design, Sell, Operate Model - Strategic partnerships for land & Construction • Non-urban location, resort • Near metros, condominium Reduce style, lease mod
Slide 46: Our 2nd Community Antara Noida phase-I is ready for launch
Our 2nd Community ‘Antara Noida’ phase-I is ready for launch High quality yet Part of an affordable upcoming Golfing Community Active and engaging 24X7 primary lifestyle with a health care & specially emergency curated response resident team engagement programme Easily accessible and amidst intergen
Slide 47: Antara Noida: receiving encouraging response from the market
Antara Noida: receiving encouraging response from the market Project Financials Phase 1: Encouraging response so far ▪ Project cost: ~ INR 850 Cr Land Area (Acre) 4 ▪ Means of finance from : No of Apartments (#) 340 • Debt : ~ INR 80 Cr • Equity : ~ INR 70 Cr (Antara’s share INR 56 Cr) • Customers C
Slide 48: Future projects: focus on Design, Sales & Marketing and Operations
For future projects, Antara shall focus only on our core strengths of Design, Sales & Marketing and Operations Land 25-40% Design and architecture 5-8% Construction 35-50% Sales & Mktg 5-7% Operations NA Activities acquisition with benchmark costs (as a % Project management 10-12% of project cost) ▪
Slide 49: Antara shall get strategic investors on a Development Manager model
Antara shall get strategic investors on a ‘Development Manager’ model 5-year cumulative illustrative financials: Noida and 3 new projects of 1 Mn Sqft sellable area in the identified locations ▪ Locations: North (Gurgaon) | West (Mumbai) | South (Bangalore) ▪ Project Development Cost: INR 2,500- 3,0
Slide 50: Overall Structure
Overall Structure The Antara story: Executive Summary Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model Assisted Care Services Residences for Seniors Overall summary: Creating shareholder value over next 5 years 50
Slide 51: Antara aspires to be a multi location company over next 5-6 years
Antara aspires to be a multi location company over next 5-6 years North Cluster ▪ Largest market with 1.3m population in our TG ▪ Most evolved market ▪ Dehradun, Noida, opportunities under discussion in Gurgaon West Cluster ▪ High affluence, high price market ▪ Large demand, with 1.9m of TG staying
Slide 52: Thank you
ANTARA Thank you & A Max Group Company
Slide 53: Annexure Slides
ANNEXURE SLIDES 53 &AMax Group Company
Slide 54: A glimpse of spaces at Antara Dehradun
A glimpse of spaces at Antara Dehradun: Activity Spaces The Reading Room Putting Green The Gallery The Den The Workshop Cards & Bridge Room 54
Slide 55: Antara Noida: Experience a new urban life, on your own terms
Antara Noida: ‘Experience a new urban life, on your own terms’ 4 Fully Finished Residences Senior specific design features Expansive Club spread over 3900 A c r e s (16,513 Sqm) Equipped with all for safety sq.m white goods and comfort 3 R e s i de n ce s Round-the- clock Engagement 24X7 Primary Hea
Slide 56: Agile changes to model in response to changing macro-economic environment
Agile changes to model in response to changing macro-economic environment Key Trends/ Dimensions Key strategic shifts 1. Traditional modes of marketing communication no more relevant: A. A Reduce customer friction to purchase • Newspaper Ads/ OOH are not visible • Flexible payment plans • Reduced sa
Slide 57: Strategic shifts to reduce customer friction, enhance channel performance
Strategic shifts implemented to reduce customer friction, enhance channel performance and reorient marketing efforts A B C Reduce customer friction Enhancing channel performance Re-orienting marketing efforts 1. Launched back ended flexible 1. Recalibrated compensation rolled 1. Mode of communicatio
Slide 58: 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