Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Investor Presentation (February 2022)
40 slides from Max Healthcare Institute's investor presentation, Feb 7, 2022
Slide 1: Exchange filing cover letter for investor presentation
February 07, 2022 Listing Department, Listing Department, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C-1, Block G, 25th Floor, BandraKurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Dalal Street, MUMBAI - 400 051 MUMBAI - 400 001 Symbol: MAXHEALTH Scrip Code: 5432
Slide 2: Investor Presentation February 2022
Investor Presentation February 2022
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 24 Appendix 29 3
Slide 5: Company Overview
By MAX Healthcare Company Overview
Slide 6: Max Healthcare: India's Second Largest Hospital Chain
Max Healthcare: India’s Second Largest* Hospital Chain Current capacity ~3,400 beds NCR 17 ~85% +75% 280 Facilities Beds in metros Occupancy Shalimar Bagh 540 402 378 BLK Patparganj Vaishali Lajpat 13%^ +60%^ 32% Panchsheel1 Nagar1,2 Revenue CAGR EBITDA CAGR ROCE 250 3 years 3 years 521 Noida1 72 Sa
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 Dr. B L Kapur Memorial Dr. Balabhai Nanavati • Radiant-Max Healthcare merger Executed O&M Hospital, Rajendra Hospital, Mumbai(1) and listing on BSE and NSE Agreement for first Place(1) • Discontinuation of Max Multi asset light model in Specialty Centre, Pitampura Dwarka for 300+ beds
Slide 9: Leading clinically comprehensive hospital chain with excellent research and academics foundation
Leading clinically comprehensive hospital chain with excellent research and academics foundation Annual run rate of Complex procedures performed High end quaternary care facilities Robotics Cardiac Neuro Orthopedic Oncology Transplants(1) surgeries procedures(2) surgeries(3) surgeries(4) surgeries(5
Slide 10: Dominant presence in the most attractive markets (1/2)
Dominant presence in the most attractive markets (1/2) Highest demand supply mismatch, per capita income and insurance penetration leading to Delhi and Mumbai having the highest ARPOB and most profitable hospital markets in India High demand-supply gap in Delhi NCR & Mumbai… …leading to higher ARPOB
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 is ~3 Mn Delhi NCR captures highest proportion of Key hubs from domestic hinterland in ~9 BUSD in size and growing medical Indi
Slide 12: Best in class performance parameters (H1 FY22)
Best in class performance parameters (H1 FY22) ARPOB(1) Occupancy (USD/OBD) (%) 78% 733 72% 667 667 65% 67% 66% 68% 65% 640 587 547 547 55% 56% 507 533 Operating parameters Max Healthcare Apollo Hospitals Fortis Healthcare Max Healthcare Apollo Hospitals Fortis Healthcare (Hospital Business) (Hospit
Slide 13: Distinguished Board and a dynamic management team
Distinguished Board and a dynamic management team Distinguished Board of directors Experienced and dynamic management team Mr. Yogesh Sareen Col. Binu Sharma Mr. Abhay Soi Senior Director – Nursing Chairman and Managing Director Senior Director & Chief Financial Officer Ms. Vandana Pakle Mr. Prashan
Slide 14: Key Growth Drivers
By MAX Healthcare Key Growth Drivers
Slide 15: Strong financial profile to support expansion plans
Multiple avenues for future growth • Optimise Payor mix 1 Optimising Existing Strong cash generation from 2 Infrastructure • Increase utilisation operations • Focus on tower specialities USD ~50 Mn in H1 FY22 Strong financial profile to support expansion plans • 2,300 beds addition via brownfield ex
Slide 16: Strong cash flow and balance sheet to fund future growth plans
1 Strong cash flow and balance sheet to fund future growth plans • Strong revenue growth driven by increasing health insurance penetration, better patient mix, increasing ARPOB, growth in medical tourism and focus on tower specialties Strong and growing cash • EBITDA growth faster than revenue growt
Slide 17: Growth opportunity in existing facilities
2 Growth opportunity in existing facilities Optimising payor mix Bed share • Push for reduction in institutional business to move towards 15% 34% 31% in the next 3 years, driven by - 37% – Steady pace of organic growth in Self Pay, TPA and corporate 2% 2% channels, and 5% – Return of International m
Slide 18: Playbook for building capacity at attractive returns
3 Playbook for building capacity at attractive returns Brownfield • Extremely attractive economics with low risk Expansion o Locations where hospitals are running at or close to full capacity – high visibility on reaching optimal capacity utilization and quick ramp up limiting pre-operating losses P
Slide 19: Existing valuable land bank to enable addition of 3,600+ beds
3 Existing valuable land bank to enable addition of 3,600+ beds, with 2,600 beds coming in next 5 years Indicative commencing timelines for new beds (Current occupancy is indicated in brackets) 7,022 500 500 200 250 200 111 300 300 350 Nanavati Hospital* (68%) 329 Saket Complex (Vikrant) (76%) 190 S
Slide 20: Transactions announced in last six months
3 Transactions announced in last six months 1. Vikrant Foundation, Saket 2. Land acquired in Gurugram 3. O&M Agreement in Dwarka 200 beds Type of expansion Brownfield Greenfield Asset Light Overview 500 beds on 3.5 acres of land in South 1,000 beds on 2 prime land parcels in 300 beds on 8.6 ac
Slide 21: Develop asset light adjacencies: Max Lab
4 Develop asset light adjacencies: Max Lab - Targeting to be amongst the top 5 players in the industry in next 5 years Organised diagnostics player to grow faster than overall diagnostic Industry driven by consolidation Indian diagnostic Industry market size Indian diagnostic Industry mix by type of
Slide 22: Develop asset light adjacencies: Max@Home
4 Develop asset light adjacencies: Max@Home – Targeting to be the largest player in Delhi NCR Indian home healthcare is under-penetrated with ~3.6% of total health spending on home Growth Drivers healthcare vis-à-vis ~8.3% in the US Indian home healthcare market to grow at a CAGR …with organised hea
Slide 23: Digital platform enabling best-in-class omnichannel healthcare experience
5 Digital platform enabling best-in-class omnichannel healthcare experience Underlying principles New age patient experience Hyper-personalised patient experience Real-time ultra reliable low latency video consult Hyper-personalised pre-hospital and in-hospital services for Integrated data / vie
Slide 24: Strong track record of successful acquisitions // MHC Turnaround
6 Strong track record of successful acquisitions // MHC Turnaround • 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 considering brownfield and greenfie
Slide 25: Financial Highlights
By MAX Healthcare Financial Highlights
Slide 26: Financial performance snapshot
Financial performance snapshot Figs in USD Mn FY19 FY20 FY21 H1 FY22 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue (incl. movement in unbilled) 522.6 580.8 517.5 375.8 Net revenue 479.8 100.0% 536.4 100.0% 483.9 100.0% 356.7 100.0% Direct costs 208.7 43.5% 228.6 42.6% 201.1 41.6% 145
Slide 27: Memorandum Profit & Loss Consolidation sheet of Network Financials for H1 FY22
Max Healthcare: Memorandum Profit & Loss Consolidation sheet of Network Financials for H1 FY22 MHIL & its Partner Healthcare Facilities ("PHF") Financials subsidiaries & (IGAAP Unaudited)* Silos MHC Network Eliminations (Consolidated) (USD Mn) & (Certified by an Ind AS Balaji GM Modi Devki Devi IND
Slide 28: Balance Sheet
Balance Sheet1 (Includes Managed & Partner Healthcare Facilities) Figs in USD Mn Particulars Mar 21 Sep 21 Shareholders' Equity 765 838 Gross Debt 150 134 Put Option Liability 11 0.6 Lease Liabilities (Ind AS 116) 26 26 Deferred/Contingent Consideration Payable3 57 59 Deferred Tax Liability/Deferred
Slide 29: Thank You
By MAX Healthcare Thank You
Slide 30: Appendix
Appendix 1. Covid-19 Response 2. ESG update 3. Network structure 29
Slide 31: Appendix: Covid-19 Response
Appendix 1 Covid-19 Response 30
Slide 32: Covid-19 Update (1/2)
Covid-19 Update (1/2) Key contributions* : Our response : First private hospital to offer a dedicated facility in Delhi for Covid-19 care Infrastructure One of the first private sector labs to start Covid-19 testing support ~45 ~7,30,000 ~20,10,000 Operationalised one of the largest Covid-19 vaccina
Slide 33: Covid-19 Update (2/2)
Covid-19 Update (2/2) Post sharp fall in occupancy rate at the start of first wave of Covid-19 at the end of Mar’20, the overall occupancy steadily Occupancy (%) rose back to normal levels in Q3 FY21 87 85 77 79 79 71 79 81 In Jan’21, occupancy decreased to ~66% levels with decline in 72 66 66 69 75
Slide 34: Appendix: ESG Update
By MAX Healthcare Appendix 2 ESG Update
Slide 35: ESG highlights for the year 2021
ESG highlights for the year 2021 Environment 24.7% reduction year-on-year in combined 43% share of renewables in the total power 10% reduction in total electricity Scope 1 & Scope 2 emissions usage consumption over the previous year 35.9% of water recycled, up from 31.5% in > 50% of our buildings ar
Slide 36: Appendix: Network structure
Appendix 3 Network structure 35
Slide 37: Network Structure
Network Structure Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Medical Service Agreement with Max Panchsheel Society Immigration centre (Lajpat Nagar) Max Saket (West) MHIL Devki Devi Society SBUs (MaxLab, Max@Home) (Max Saket East, Immigration centre (Mohali) Onco
Slide 38: 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 39: Definitions
Definitions Term Description Amount billed to the patients/customers as per contracted/rack rates, as applicable, including the patients from the economically weaker section (EWS) on discharge basis; Also includes movement in unbilled revenue Gross Revenue at the end of the period for patients admit
Slide 40: About us
About us Max Healthcare Institute Limited (MHIL) is India’s leading provider of healthcare services. For further information, It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education. please contact: For more information, visit MHIL h
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