Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (August 2012)
20 slides from Apollo Hospitals Enterprise's investor presentation, August 2012
Slide 1: Investor Presentation August 2012
I Investor t Presentation P t ti August 2012 Strictly Private and Confidential
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Apollo Hospitals Enterprise Limited (“AHEL” or the “Company”) solely for your information and for your use and may not be taken away, distributed, reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within
Slide 3: Key highlights
Key highlights Leading Private Sector Healthcare Services Provider in India Attractive Industry Opportunity Clinical Excellence and Strong Brand Value Strong Operating and Financial Track Record Well Planned Strategy to Deliver the Next Phase of Growth Experienced Management Team 2
Slide 4: Business snapshot
Business snapshot Leading private sector healthcare services provider in India Business Overview Consolidated Financials(1) (Rs. mn) FY09 FY10 FY11 FY12 • Promoted by Dr. Prathap C. Reddy (Padma Vibhushan, 2010) Gross Revenue 16 142 16,142 20 265 20,265 26 054 26,054 31 475 31,475 • Key Businesses I
Slide 5: Evolution
Evolution Business Evolution 1983–1988 1989 –2000 2001–2004 2005–2010 2011–2015 Apollo Hospital, Chennai Indraprastha Apollo Apollo Gleneagles, Imperial Hospital, Bangalore Plan to add 3,140 Apollo Health City, Hospitals Delhi Hospitals, Kolkata 2 REACH Hospitals, and beds by FY15 Hyderabad Apollo S
Slide 6: Pan India presence
Pan India presence Apollo is the leading player in the Indian hospitals segment by geographic presence as well as business span and breadth of services offered. Leading Hospital Players in India Details of Beds under operation (8) Total Capacity Operational Beds No. of Hospitals (2) Category Wise Fo
Slide 7: Clinical excellence and quality healthcare services
Clinical excellence and quality healthcare services Focus on Excellence Strong Brand Value Strong, long standing relationship with doctors and JCI Accreditation for 7 hospitals- Bangalore, medical professionals Chennai, Delhi, Dhaka, Hyderabad, Kolkata and Focus on Key Specializations & Centers
Slide 8: Attractive industry opportunity
Attractive industry opportunity Demand for healthcare services in India is expected to rise owing to favorable demographics. Private sector players are well-positioned to leverage this opportunity given low contribution of government spending. Healthcare Expenditure (as % of GDP)(1) (2009) Healthcar
Slide 9: Attractive industry opportunity (cont'd)
Attractive industry opportunity (cont’d) In-patient market and incidence of lifestyle diseases are on the rise. rise In-patient / Out-patient Market Size(1) (Rs. bn) No of Hospitalized Cases (mn) and In-patient Market(1) (Rs. bn) Patient volumes and spends are expected to grow rapidly, Increasing in
Slide 10: Robust financials
Robust financials Consistent improvement in financial performance across hospitals (mature and new), as well as across businesses (hospitals and standalone pharmacies). Performance Highlights Total Consolidated Revenue (1) (Rs. mn) Healthcare services: Improvement in operating Strong growth in rev
Slide 11: Robust financials (cont'd)
Robust financials (cont’d) Apollo is one of the few companies in India across capital-intensive industries to generate healthy returns on capital employed in the business. Rapid Improvement in ROCE Return on Capital Employed#—Healthcare Services (%)* 19% 17% 18% 1 Efficiency 2 15% 14% ROCE = (Asset
Slide 12: Strong operating metrics
Strong operating metrics Continuous improvement in key operating metrics is helping drive revenues and profitability profitability. In-patient Admissions (’000) (1) Bed Occupancy Rate (2) (%) Operational Highlights Continued in-patient volumes growth Consistent bed utilization Occupancy rates rema
Slide 13: Cluster wise operational performance
Cluster wise operational performance Apollo p has consistently y delivered improvement p across various operational p parameters p over the past p few years, driving growth even in mature hospitals. AHEL Standalone Total (5) Chennai cluster Hyderabad cluster Others (1) Significant subs/ JVs/ associa
Slide 14: Standalone Pharmacies: capturing the growth potential
Standalone Pharmacies: capturing the growth potential India’s India s largest organized pharmacy retail chain with a network of 1,357 1 357 stores. stores Overview Number of Standalone Pharmacies • Offers a wide range of medicines and surgical products, hospital consumables and over-the-counter prod
Slide 15: Operational performance: Standalone Pharmacy
Operational performance: Standalone Pharmacy Key Financials (INR mn) Key Comments Batch Particulars Q1 FY12 Q1 FY13 YoY% 311 291 • Standalone pharmacies continues its EBITDA Upto FY07 Batch No. of Stores expansion trajectory on the back of buying Revenue/Store 2.20 2.55 15.70% efficiencies and opera
Slide 16: Q1 FY13: Financial Performance
Q1 FY13: Financial Performance Standalone Financials Consolidated Financials ( Unaudited estimates) Q1 FY 12 Q1 FY 13 yoy (%) Q1 FY 12 Q1 FY 13 yoy (%) Revenue 6410 7774 21.3% Income from Operations 6,787 8,256 21.6% Add: Share of JVs 447 557 24.5% Operative Expens es 3381 3997 18.2% Employee Expens
Slide 17: Key strategies
Key strategies Aim to ensure dominant bed share in key strategic markets – Chennai, Hyderabad, Delhi, Kolkata, Establish / strengthen Ahmedabad, Mumbai and Bangalore presence in key strategic markets Leverage brand strength to become the dominant healthcare provider by providing additional servi
Slide 18: Planned expansion
Planned expansion Well planned strategy to address growing demand for healthcare service delivery in existing markets, new large markets and semi-urban markets. Defined Expansion Plan for Owned Bed Capacity(1) Strategy for Expansion Total AHEL’s Focus on owned hospitals Estim ate d Share Project o
Slide 19: Board of directors and key senior management team
Board of directors and key senior management team Board Members Key Senior Management Team Dr. Prathap C. • Executive Chairman, Founder K. Padmanabhan • Group President and has been with the company Reddy (M.D, MBBS, FCCP, FICA and FRCS) since 1996 • Conferred the Padma Vibhushan in 2010 • Responsib
Slide 20: Thank you
19 Thank you — APOLLO HOSPITALS HOSPITALS TOUCHING LIVES
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