Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Q3 FY21 Earnings Presentation
26 slides from Healthcare Global Enterprises's earnings presentation, Feb 11, 2021
Slide 1: Exchange filing cover letter: Investor Presentation
February 11, 2021 National Stock Exchange of India Limited, BSE Limited, Compliance Department, Compliance Department, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai - 400051, Dalal Street, Mumbai - 400001, Maharashtra, India Maharashtra, India Dear Sir/Madam,
Slide 2: HealthCare Global Enterprises Limited Investor Presentation Q3 & YTD-FY21
HealthCare Global Enterprises Limited In v e s to r P r e s e n tati on Q 3 & YT D - FY21 www.hcgel.com © 2020 Healthcare Global Enterprises Limited 1
Slide 3: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This pr
Slide 4: Leadership in specialty healthcare
Leadership in specialty healthcare www.hcgel.com © 2020 Healthcare Global Enterprises Limited 3
Slide 5: Overview, Financial Highlights, Appendix
Overview Financial Highlights Appendix www.hcgel.com © 2020 Healthcare Global Enterprises Limited 4
Slide 6: Overview of HCG (1/2)
Overview of HCG (1/2) Snapshot of the Business Comprehensive cancer diagnosis and treatment Specialty healthcare provider with a focus on services (through radiation therapy, medical oncology and surgery) cancer and fertility Largest1 provider of cancer care in India under 223 comprehensive
Slide 7: Overview of HCG (2/2)
Overview of HCG (2/2) Entry into fertility business through Today India’s largest provider the acquisition of 50.1% in BACC of cancer care¹ Healthcare Pvt. Ltd. Awarded Oncology Leader of 2013 the Year by Frost & Sullivan Milann ranked #1 nationally 2011 Entry into the clinical laboratory business t
Slide 8: HCG's Cancer Care Network
HCG’s Cancer Care Network Network of Existing and Under HCG Network Development Cancer Care centers Center of Excellence (CoE)1 Comprehensive Cancer center (22)2 Freestanding Diagnostic center (3)2 2,0361 +28 +17 BEDS LINEAR PET-CT SCANNERS Cancer centers Under Development (1) ACCELERATO RS NCR Jaip
Slide 9: Overview, Financial Highlights, Appendix
Overview Financial Highlights Appendix www.hcgel.com © 2020 Healthcare Global Enterprises Limited 8
Slide 10: Financial Highlights: Q3-FY21
Financial Highlights: Q3-FY21 INR million except earnings per share • Q3’21 Revenue declined 1.4% y-o-y Growth Period Ended Dec 31 Q3-FY21 Q3-FY20 (y-o-y) • HCG(1) centers: -0.3% Income from Operations 2,740 2,779 -1.4% • Milann centers: -26.0% Other Income 58 25 • Q3’21 Operating EBITDA • Existing
Slide 11: Financial Highlights: YTD-FY21
Financial Highlights: YTD-FY21 INR million except earnings per share • YTD’21 Revenue declined 13.3% y-o-y Growth Period Ended Dec 31 YTD-FY21 YTD-FY20 (y-o-y) • HCG(1) centers: -11.2% Income from Operations 7,154 8,253 -13.3% • Milann centers: -44.0% Other Income 126 53 • YTD’21 Operating EBITDA (1
Slide 12: Revenue Mix: Q3-FY21
Revenue Mix: Q3-FY21 Revenue: HCG Centers: INR 2,740 Mn INR 2,609 Mn Gujarat HCG (1) 29% Karnataka (29%) 1 centers 34% 95% (35%) 1 (94%) 1 Fertility (2) centers 5% North India Maharashtra (6%) 1 2% 16% (2%) 1 (14%) 1 A.P. East India Tamil Nadu 8% 9% 2% (8%) 1 (8%) 1 (1) 22 comprehensive cancer cente
Slide 13: HCG Centers: Q3 & YTD-FY21 Revenues
HCG Centers: Q3 & YTD-FY21 Revenues INR million Growth Growth Period Ended Dec 31 Q3-FY21 Q3-FY20 (y-o-y) YTD FY21 YTD FY20 (y-o-y) • Strong resilience in revenues across centers located in Tier 2/3 Karnataka 898 913 -1.7% 2,388 2,710 -11.9% towns in Q3-FY21 Gujarat 755 754 0.2% 1,916 2,314 -17.2% M
Slide 14: HCG Centers: Q3-FY21 Operating Metrics
HCG Centers: Q3-FY21 Operating Metrics No. of Centers Beds Avg. Occupancy Rate Q3-FY21: Q3-FY21 : Q3-FY21 : • ARPOB for existing centers at INR 33,074 25 2,036* 43.6% against INR 33,918 in Q3-FY20 Q3-FY20: • ALOS at 2.31 days showed marginal Q3-FY20: Q3-FY20: 2,063 41.7% increase 25 • Operating EBIT
Slide 15: HCG Centers: Q3-FY21 Regional Highlights
HCG Centers: Q3-FY21 Regional Highlights ARPOB Revenue Operating Centers Beds AOR (INR /Day) (INR MN) EBITDA % Karnataka COE Revenue grow th of 20% q-o-q and decline of -6.8% y-o-y 7 615 47.2% 35.2K 898 18.1% COE ARPOB of INR 49.7k and 19% operating EBITDA margin Revenue from international pat
Slide 16: Milann: Implementing Strategic Initiatives
Milann: Implementing Strategic Initiatives Existing centers (1) New centers (2) Chandigarh Delhi Q3-FY21 Q3-FY20 Growth New Registrations 1,088 1,313 -17.1% Bangalore (5 centers) IVF Cycles 460 550 -16.4% Revenue (INR Mn) 131 177 -26.0% M S Ram aiah Indiranagar Shivananda Strong recovery in regist
Slide 17: Capital Expenditure and Net Debt
Capital Expenditure and Net Debt Capital Expenditure Net Debt INR Million INR Million 31-Dec-20 30-Sep-20 Q3-FY21 H1-FY21 Net Debt HCG Centres Bank Debt (1) 3,955 3,953 Existing Centres 28 30 Vendor Finance (2) 501 710 Expansions 6 94 Capital Leases - - New Centres 73 18 Other Debt 56 68 108 142 Les
Slide 18: Project Updates
Project Updates Additional 1 new HCG center in FY2023 No new Milann center in FY2020 Bed Project Cost Start Location Capacity (INR mn) Date Location Start Date Jaipur, Rajasthan 50 410 Q2-FY19 Delhi Q1-FY17 Bhavnagar, Gujarat NA 150 Q2-FY19 Chandigarh Q3-FY17 Nashik Phase II, 92 623 Q2-FY19 Maharash
Slide 19: Overview, Financial Highlights, Appendix
Overview Financial Highlights Appendix www.hcgel.com © 2020 Healthcare Global Enterprises Limited 18
Slide 20: Investment Thesis
Investment Thesis Strong Industry trends Largest provider of High quality care provided Strong management and growing oncology cancer care in India with at a competitive price team with successful cases backdrop a proven track record track-record www.hcgel.com © 2020 Healthcare Global Enterprises Li
Slide 21: Industry Trends and Backdrop
Industry Trends and Backdrop Cancer Incidences in India to Increase Incidence of Cancer Across Countries¹ 3.4 Cancer prevalence in India estimated to be 3.9mn in 2015 Estimated incidence Estimated 1.1mn new cancer cases reported in 2015 1.6-2.2 1.7 of cancer in 2015 1.1 0.9 (mns) Real incidenc
Slide 22: Industry Trends and Backdrop
Industry Trends and Backdrop Demand Supply Gap and Treatment Landscape Existing Demand Supply Gap in Diagnostics… …and Treatment Lack of adequate infrastructure and absence of mass A key requirement for successful radiation therapy is screening programs are key barriers to timely diagnosis avail
Slide 23: Largest Provider of Cancer Care in India
Largest Provider of Cancer Care in India A Proven Track Record¹ HCG’s market leading position, successful track record and strong reputation in India provides a significant advantage over its competitors Largest Cancer Care Provider… …With a Strong Track Record Largest provider of cancer care in I
Slide 24: High Quality Care Provided at Competitive Price
High Quality Care Provided at Competitive Price Ability to provide high quality care driven by a multidisciplinary and technology focused approach Approach to Providing High Quality Care… …Results in Successful Clinical Multidisciplinary approach to cancer care - specialist physicians from various
Slide 25: Unique and Successful Business Model
Coverage by Harvard Unique and Successful Comparable outcomes Business Model at fraction of cost Survival Rate Cost Govindarajan et. al. .Harvard Business Review, November 2012, “Delivering World Class Health Care Affordably, Innovative hospitals in India are pointing the way”G www.hcgel.com © 2020
Slide 26: Thank You
THANK YOU For updates and specific queries, please visit www.hcgel.com or feel free to contact investors@hcgoncology.com © 2019 HealthCare Global Enterprises Limited., All Rights Reserved. HCG Logo is trademark of HealthCare Global Enterprises Limited In addition to Company data, data from market re
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