Fortis Healthcare Ltd. · NSE:FORTIS
Fortis Healthcare — Q3 FY2020 Earnings Presentation
28 slides from Fortis Healthcare's earnings presentation, Feb 14, 2020
Slide 1: Investor Presentation filing cover letter
Fortis Healthcare Limited Tower-A, Unitech Business Park, Block-F, South City 1, Sector – 41, Gurgaon, Haryana – 122 001 (India) Tel : 0124 492 1033 Fax : 0124 492 1041 Emergency : 105010 Email : secretarial@fortishealthcare.com Website : www.fortishealthcare.com FHL/SEC / 2019-20 February 14, 2020
Slide 2: Earnings Presentation – Q3 & 9M FY2020
Fortis Healthcare Limited Earnings Presentation – Q3 & 9M FY2020 February 14, 2020
Slide 3: Disclaimer
Disclaimer This presentation may not be copied, published, distributed or transmitted. The presentation has been prepared solely by the company. Any reference in this presentation to “Fortis Healthcare Limited” shall mean, collectively, the Company and its subsidiaries. This presentation has been pr
Slide 4: Agenda
Agenda 1. Key Business Highlights – Hospitals and Diagnostics 2. Performance Review – Hospitals Business 3. Performance Review – Diagnostics Business 4. Appendix
Slide 5: 1. Key Business Highlights
1. Key Business Highlights 42 Fortis
Slide 6: Consolidated Reported Earnings Summary – Q3FY20
Consolidated Reported Earnings Summary – Q3FY20 • Consolidated Revenues for Q3 grew 6% to reach INR 1,168.9 Crs. Consolidated EBITDA** for Q3 increased 2x to INR 161.9 Crs. o Hospital business revenues stood at INR 953.5 Crs, a growth of 7.3% o The hospital business EBITDA** was at INR 133.8 Crs vs
Slide 7: Consolidated Reported Earnings Summary – 9MFY20
Consolidated Reported Earnings Summary – 9MFY20 • Consolidated Revenues for 9MFY20 grew 7.1% to reach INR 3,519.4 Crs. Consolidated EBITDA** for 9MFY20 increased 2.7x to INR 518 Crs. o Hospital business revenues stood at INR 2,838.8 Crs, a growth of 8.8% o The hospital business EBITDA** margins stoo
Slide 8: Consolidated Operating Earnings Summary
Consolidated Operating Earnings Summary INR Cr Consolidated Revenue 1,300 1,212 1,184 1,169 1,138 1,103 1,100 900 700 500 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 INR Cr Operating EBITDAC Operating PBT (excl OI) 300 200 191 182 167 137 142 100 71 42 49 - 20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 (100) (103) (
Slide 9: Operating Performance – Hospital Business
Operating Performance – Hospital Business INR Cr Q3FY19 Q3FY20 % QoQ 9MFY19 9MFY20 % Change Revenue 889.0 953.5 7.3% 2,608.5 2,838.8 8.8% EBITDAC 109.7 133.8 21.9% 248.2 371.4 49.7% EBITDAC % 12.3% 14.0% 9.5% 13.1% Adjustments Other Income (incl 40.4 8.6 67.5 31.1 Fx) Exceptional Item^ (30.3) (1.3)
Slide 10: Operating Performance – Diagnostic Business
Operating Performance – Diagnostic Business INR Cr Q3FY19 Q3FY20 % QoQ 9MFY19 9MFY20 % Change Net Revenue (net 209.2 214.6 2.6% 660.3 679.4 2.9% of inter-company) EBITDA 39.6 39.8 0.5% 138.4 163.6 18.2% EBITDA % 18.9% 18.5% 21.0% 24.1% Adjustments Other Income (incl 2.8 6.3 7.1 12.5 Fx) Exceptional
Slide 11: Balance Sheet – December 31, 2019
Balance Sheet – December 31, 2019 Balance Sheet (INR Cr) Sept 30, 2019 Dec 31, 2019 Shareholder’s Equity 7,313 7,262 Debt 1,261 1,357 Lease Liabilities (Ind AS 116)* 232 231 Total Capital Employed 8,806 8,850 Net Fixed Assets (includes CWIP) 5,307 5,279 Goodwill 3,721 3,721 Investments 155 170 Cash
Slide 12: 2. Performance Review – Hospitals Business
2. Performance Review – Hospitals Business 11
Slide 13: Key Performance Metrics – Hospitals Business
Key Performance Metrics – Hospitals Business ➢ Consistent improvement in all operating parameters Occupancy (%) ARPOB (INR Cr per annum) ALOS (Days) 72% 1.62 68% 68% 66% 68% 3.42 3.34 1.57 3.23 3.24 3.17 1.54 1.53 1.51 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q1FY20 Q3FY
Slide 14: Key Hospitals Performance
Key Hospitals Performance INR Crore • International patient revenue 450 at INR 102 Cr, 10.7% of the 390 400 9MFY19 9MFY20 hospital business revenue 346 350 325 • Key Hospitals revenue growth 299 300 (over Q3 FY19) 248243 250 226236 • Noida +15% 221 211 207 185 189 • Faridabad +24% 200 166 159 • Anan
Slide 15: Hospitals Margin Matrix - 9MFY20
Hospitals Margin Matrix - 9MFY20 Revenue EBITDA No of Facilities Operational beds ARPOB (INR Cr) Occupancy contribution >25% 1 2% 60 1.44 74% 20% - 25% 2 12% 396 1.63 74% 15% - 20% 5 36% 1,050 1.90 71% 10% - 15% 4 19% 693 1.47 72% <10% 12 31% 1,408 1.33 64% Total/Average 24 100% 3,607 1.62 68% • EBI
Slide 16: Specialty Mix – Q3 FY20
Specialty Mix – Q3 FY20 Q3FY19 Q3FY20 OPD & Cardiac, 22% Others, 18% OPD & Cardiac, 20% Others, 19% IPD & Others, Ortho, 8% Ortho, 7% 18% IPD & Others, Renal , 7% 18% Renal , 7% Oncology, 9% Gynecology, 5% Gynecology, Neuro, 8% Oncology, 7% Neuro, 7% 5% Pulmonology, Gastro, 4% Pulmonology, Gastro, 4
Slide 17: Payor Mix – Q3 FY20
Payor Mix – Q3 FY20 Q3FY19 Q3FY20 ESI, 0.3% ESI, 0.6% TPAs, 27% TPAs, 29% Cash : Cash : Domestic, Domestic, 43% 45% Pvt Corps, 1% Pvt Corps, 1% International , International , 10% 11% Govt & PSUs, 7% Govt & PSUs, 8% ECHS, 6% ECHS, 5% CGHS, 2% CGHS, 2% 16
Slide 18: Key Initiatives / milestones – Q3 FY20
Key Initiatives / milestones – Q3 FY20 Fortis Hospital, BG road, launched a state of the art Cancer Institute. The 200-bed institute offers comprehensive cancer care under one roof. Services available at the institute include advanced surgical oncology, robotic cancer surgery, medical oncology, ra
Slide 19: Clinical Excellence and Awards & Accolades – Q3 FY20
Clinical Excellence and Awards & Accolades – Q3 FY20 In a first, Fortis Hospital, Ludhiana, has performed a The Liver Transplant team at Fortis Mulund successfully challenging Transcatheter Aortic Valve Replacement conducted a liver transplant on an infant from (TAVR) procedure for an elderly heart
Slide 20: 3. Performance Review – Diagnostics Business
3. Performance Review – Diagnostics Business 19
Slide 21: Diagnostics Business – Q3 FY20
Diagnostics Business – Q3 FY20 Gross Revenue EBITDA Margin ➢ Gross Operating revenue at INR 249 Cr, +2.8% (like for INR Cr 300 277 30.0% 243 249 like growth ~3.6%); 200 23.1% 20.0% ➢ Operating EBITDA margin basis gross revenue stood at 15.2% 16.8% 16.8% vs 15.2% in Q3FY19 100 10.0% ➢ Lower patient f
Slide 22: Diagnostics Business – Q3 FY20
Diagnostics Business – Q3 FY20 ➢ Contribution to revenue from Direct Clients and Hospitals increased to 19% and 23% respectively (versus 17% and 21% in Q3FY19 respectively). ➢ Successful addition of 194 collection centers in Q3FY20 to improve retail presence ➢ B2C segment which includes collections
Slide 23: Key Performance Metrics
Key Performance Metrics Number of Tests and Average Realizations* Direct Cost per test No of Tests (mn) Avg. Realization per test (INR) Direct Cost per test (INR) 450 9.00 90.0 84.4 8.36 82.9 81.9 80.8 79.7 7.80 80.0 400 7.40 7.45 8.00 7.32 350 7.00 70.0 334 331 336 329 327 60.0 300 6.00 250 5.00 50
Slide 24: Revenue Mix
Revenue Mix Geographic Mix Customer Mix Internatio Wellness, International, Clinical nal, 4% 3% 4% Trial, 0% Direct Walk-in, Q3FY2020 Q3FY2020 West, 28% North, Client, 19% 31% 35% Hospitals, South, 23% CC, 19% 12% East, 21% Wellness, International, Clinical International 3% 3% Trial, 0% , 3% Direct
Slide 25: 4. Appendix
4. Appendix . 42 Fortis
Slide 26: Group Consolidated P&L – Q3 FY20
Group Consolidated P&L – Q3 FY20 Q3FY19 Q2FY20^^ Q3FY20^^ % QoQ Particulars (Rs Cr.) (Rs Cr.) (Rs Cr.) Operating Revenue 1,103.3 1,212.2 1,168.9 6.0% Operating EBITDAC* 136.6 190.6 166.6 22.0% Operating EBITDAC margin 12.4% 15.7% 14.3% Net BT Costs 68.3 - - Operating EBITDA 68.3 190.6 166.6 144.1% O
Slide 27: Group Consolidated P&L – 9M FY20
Group Consolidated P&L – 9M FY20 9MFY19 9MFY20^^ % Change Particulars (Rs Cr.) (Rs Cr.) Operating Revenue 3,285.2 3,519.4 7.1% Operating EBITDAC* 359.2 499.5 39.1% Operating EBITDAC margin 10.9% 14.2% Net BT Costs 200.7 - Operating EBITDA 159 499.5 215.1% Operating EBITDA margin 4.8% 14.2% Other Inc
Slide 28: Thank You
For further details please contact: Anurag Kalra / Gaurav Chugh Investor Relations +91-9810109253 / 9958588900 Fortis Healthcare Limited Thank You 27