Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Q4 FY22 Earnings Presentation
40 slides from Healthcare Global Enterprises's earnings presentation, May 26, 2022
Slide 1: Cover letter to exchanges: updated investor presentation file
May 26, 2022 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, Subj
Slide 2: Healthcare Global Enterprises Limited Q4 & FY22 Investor Presentation
HEALTHCARE GLOBAL ENTERPRISES LIMITED Q4 & FY22 INVESTOR PRESENTATION
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: Hope for Cancer Patients
INDIA’S LEADING ONCOLOGY FOCUSED NETWORK HOPE FOR CANCER PATIENTS www.hcgel.com 3
Slide 5: Overview
OV E RVIEW Cancer Care • Comprehensive cancer diagnosis and treatment services (offering radiation therapy, medical o n c o l o gy and surgery) • 22 2 comprehensive cancer centers (including Kenya) BAC KG RO U N D Fertility Treatment Multi-Speciality One of the Largest1 provider of cancer care in In
Slide 6: Execution Focused
EXECUTION FOCUSED L a s e r s h a r p fo c u s o n leadership Penetrate key re g i o n s t h ro u g h in O n c o l o g y in India MARKETS o rga n i c / i n o rga n i c opportuni ti e s Deliver m a rg i n improvement, Transform p r o c e s s e s & c a s h flow ge n e rat i o n & st ro n g o u tc o m
Slide 7: Key Investment Highlights
K E Y INVESTMENT HIGHLIGHTS Q U A L I T Y: Infra, technology, talent, outcomes FA V O R A B L E I N D U S T R Y DY N A M I C S : meeting global standards Oncology growing faster than market F O C U S E D C A R E MODEL: Independent comprehensive LEADING ONCOLOGY NETWORK: cancer centers No.1 market po
Slide 8: Business Model
BUSINESS MODEL SAVITA DEVI, C A N C E R WINNER I chose the hospital that said my cancer could be treated over the hospital that said I only had six months. www.hcgel.com 7
Slide 9: Oncology Incidence in India
ONCOLOGY INCIDENCE IN INDIA INCIDENCE ACROSS I N C I D E N C E S IN INDIA TO COUNTRIES G R O W T O ~2MN CASES B Y F Y 2 4 ¹ 2 I nc ide nc e of new c a n c e r c a s e s ( ‘ 0 0 0 ) 4 .4 % 1,9 75 4 .7% 1,59 4 1,389 51% 50% Male 50% 50% 49% F emale 50% FY16 FY19 F Y 24 1Call for Action: Expanding canc
Slide 10: Key Drivers of Oncology Opportunity
KEY DRIVERS OF ONCOLOGY OPPORTUNITY 1 2 3 Demographic Changes Exposure to Risk Factors Narrowing Diagnosis Gap Incidences increases with ageing - population Tobacco use, alcohol consumption, use of Growing awareness and greater public >50+ yrs to increase to 262mn, expected to processed food and air
Slide 11: Oncology Opportunity: Growing Faster Than Market
ONCOLOGY OPPORTUNITY: GROWING FASTER THAN MARKET O N C O L O G Y E X P E C T E D TO G R O W FA S T E R G R O W T H I N O N C O L O G Y M O R TA L I T Y A C A U S E T H A N T H E O V E R A L L H E A LT H C A R E M A R K E T FOR CONCERN & NEEDS FOCUSED INTERVENTION C a n c e r Care market in India ( I
Slide 12: HCG Journey
HCG JOURNEY Bangalore Institute of Oncology Company ’s name changed to Acquired the 1st privately owned 1st Comprehensive H C G Ahmedabad, 1st privately commences operations. HealthCare Global Enterprises Pvt. Ltd. comprehensive cancer center in Karnataka. Cancer Care Center in Jharkhand. owned Comp
Slide 13: Sustainable Business Model in Oncology
S U S T A I N A B L E B U S I N E S S M O D E L IN O N C O L O G Y • Largest onco logy brand & network 1 • Oncologist promoted with collaborations have built strong legacy as a P r e m i e r O n c o l o g y institution local 4 with hybrid presence (metros / Tier 2,3 towns) pan-India 2 • Latest tech.
Slide 14: Quality Focused
SHANKAR, C A N C E R WINNER QUALITY FOCUSED The days I was at HCG, I felt like I was sleeping at home. They never stop caring for you. The doctors and nurses are always finding ways to make this diicul t journey as comfortable as possible. www.hcgel.com 13
Slide 15: Leadership Across Advanced & Precision Technologies / Specialized Procedures
LEADERSHIP ACROSS ADVANCED & PRECISION TECHNOLOGIES / SPECIALIZED PROCEDURES DIAGNOSTICS IMA G E T O TA L P E T C T S : DIGITAL P E T CT: 1 N O . S DIGITAL PATHOLOGY: MOLECULAR / GENOMICS LA B: 17 N O . S ACROSS NETWORK 1 NO.S RADIOT H E R A PY T O TA L L I N A C S : 31 N O . S CYBERK NI F E : 2 N O
Slide 16: Unique Oncologist Engagement Model
UNIQUE ONCOLOGIST ENGAGEMENT MODEL INSTITUTION-FIRST L O YA LT Y A N D S U S TA I N A B I L I T Y Exclusive engagement with flexibility on pay-out Access to best practices, leading technologies, structures (payroll, consultant, fee-for-service) complex cases & large patient volumes Expert clinicians
Slide 17: Quality, Research & Academics Ecosystem
Q UA L I T Y, R E S E A R C H & A C A D E M I C S E C O S Y S T E M 101 Q U A L I T Y & R E S E A R C H I N I T I AT I V E S * PUBLI CATI ON Innovation @ H C G PUBLI SHED Life of a Laryngectomy person I s marked Grants by Ministry of A Y US H and D S T b y many problems including no voice 28 Oral pr
Slide 18: Focus on Expertise & Excellence in Oncology
F O C U S O N E X P E R T I S E & E X C E L L E N C E IN O N C O L O G Y Multi-disciplinary Tu m o r B o a r d C O V E R A G E B Y H A R VA R D UNIQUE BUSINESS MODEL G L O B A L LY C O M PA R A B L E O U T C O M E S Molecular Imaging / R o bo t i c Nuclear S u rg e r y S U R V I VA L R AT E COST Med
Slide 19: Clinical Milestones
CLINICAL MILESTONES Asia's first bloodless We introduced biological HCG has conducted the Bone Marrow Transplant was reconstruction to treat bone largest number of Breast performed by our experts. cancer in India. Conservation Surgeries in India. India's first Computer Assisted Cyberheart – Fi rst h
Slide 20: Market Leadership
MARKET LEADERSHIP ARJUN MANDAL, C A N C E R WINNER I wholeheartedly thank Dr Aftab and HCG team for diligently handling my case and helping me recover without any diiculties. I am delighted to say that today I am leading a healthy and cancer-free life. www.hcgel.com 19
Slide 21: India's Premier Cancer Care Network
I ND I A ’ S P R E M I E R C A N C E R C A R E N E T W O R K Center of Excellence (CoE)1 HCG NETWORK Comprehensive Cancer center (21) 2 1 ,9 4 4 1 ,7 0 2 31 C A P A C I TY O P E R A TI O N A L LI NEAR BEDS3 BEDS3 ACCELERAT ORS Jaipur Ahmedabad Baroda Ranchi Kolkata Bhavnagar Nagpur Cuttak Nashik 17
Slide 22: India's Premier Cancer Care Network: Market Positions
I ND I A ’ S P R E M I E R C A N C E R C A R E N E T W O R K N o . 1 in A n d h ra P ra d e s h 3 centers; 155 beds No.1 in Gujarat 5 centers; 403 beds No.1 in Ka r n ata ka 7 centers; 5 1 4 beds No.1 in O d i s h a & J h a r k h a n d Jaipur S c a l i n g in W. B e n ga l 3 centers; 239 beds Ahmeda
Slide 23: Unmatched Presence in Non-Metro Markets
U N M A T C H E D P R E S E N C E IN N O N - M E T R O M A R K E T S COMPREHENSIVE C A N C E R CENTERS NON-METRO C E N T E RS BEDS(#) MARKET POSITION T H E ‘ BHAR AT ’ O P P O R T U N I T Y: NASHIK 206 NO.1 G A P S IN R U R A L H E A LT H C A R E M A R K E T NAGPUR 121 NO.1 Over 60% of population ha
Slide 24: Specialization Driving Competitive Advantages
S P E C I A L I Z A T I O N DRIVING COMPETITIVE ADVANTAGES PA R A M E T E R S D R I V I N G E XC E L L E N C E I N O N C O L O G Y HCG MODEL MULT I - S P E C I A LT Y MODEL 1 . D e d i c a te d / I n d e p e n d e nt a n d ‘built-to-suit ’ facilities E sta b l i s h e d Absent 2 . C o m p r e h e n
Slide 25: Significant Scale, Focus & Presence Over Peers
SIGNIFICANT SCALE, FOCUS & PRESENCE OVER PEERS No. of co m p re h e n s i ve c a n c e r centers in India 21 ~2x presence / patient catchment for S C A L E O F O P E R AT I O N S & I N F R A S T R U C T U R E o n cology compared to 2nd largest player 11 10 8 5 6 6 5 2 3 1 1 HCG A pollo Ma x F ortis
Slide 26: Sustainability
SUSTAINABILITY SUBASINI LENKA, C A N C E R WINNER I am eternally thankful to Dr Panda and other specialists at HCG Panda Cancer Hospital, as the specialists were able to treat my condition the right way, the first time. www.hcgel.com 25
Slide 27: Demonstrated Track Record
DEMONSTRATED TRACK RECORD 13 ,978 Total Revenue (INR mn) Total E B I T D A (INR mn) 10 ,956 10 ,134 2,380 9,787 8,30 7 7,0 0 1 1,722 5,842 1,252 1,266 1,188 1,050 848 << IND AS 116 >> F Y16 F Y17 F Y18 F Y19 F Y20 F Y21 F Y22 F Y16 F Y17 FY18 FY19 FY20 FY21 FY22 EBITDA, post-corporate expenses; FY’2
Slide 28: Strong Growth & Leadership Strategy
STRONG GROWTH & LEADERSHIP STRATEGY E x i st i n g C e nte rs N e w C e nte rs Singular organization focus driving growth Stabilize operations and drive strong ramp-up Optimization measures to improve margin Clinical engagement to bring best talent and Cohesive engagement of clinical, sales & Ops to
Slide 29: Capital Partners: Promoters with Strong Pedigree
PROMOTERS WITH STRONG PEDIGREE O N C O L O G Y DOMAIN K N O W L E D G E A N D E X P E R I E N C E IN INDIA/USA M BBS from St.Johns & Radiation / Medical oncologist from MD Anderson Dr. BS Ajaikumar Over 40yrs+ of experience in practicing oncology in India & US Promoter & Awarded the Ernst and Young
Slide 30: Responsibility & Governance Focused
RESPONSIBLITY & GOVERNANCE FOCUSED SETTING ESG BENCHMARKS Pioneer among hospitals • Managing energy needs as an integral part of to adopt Integrated operational strategy to ensure e i c i e n t Reporting (IR) Establishing an environmental policy Framework in FY19 with energy utilization Assessing th
Slide 31: Financial Highlights
INDIA’S LEADING ONCOLOGY FOCUSED NETWORK FINANCIAL HIGHLIGHTS HOPE FOR CANCER PATIENTS www.hcgel.com 30
Slide 32: Financial Highlights: Q4-FY22
FINANCIAL HIGHLIGHTS : Q 4 - F Y 2 2 INR million except earnings per share Growth Q4’22 R e v e n u e g r e w b y 22.3% y - o - y Period ended Mar'22 Q4-FY22 Q4-FY21 (y-o-y) ▪ HCG(1) centers grew by 22.9 % Income from Operations 3,646 2,981 22.3% ▪ Milann centers grew by 11.4 % EBITDA(1) 661 438 ▪ I
Slide 33: Financial Highlights: FY22
FINANCIAL HIGHLIGHTS : F Y 2 2 INR million except earnings per share FY22 R e v e n u e 4 g r e w b y 37.9 % y - o - y Growth Period ended Mar'22 FY22 FY21 (y-o-y) ▪ HCG(1) centers: +37.8 % Income from Operations 13,978 10,134 37.9% ▪ Milann centers: +39.8 % EBITDA(1) 2506 1435 FY22 O p e r a t i n
Slide 34: Revenue Mix: FY22
REVENUE MIX: FY22 Reve n u e : H C G Centers: INR 13,978 Mn INR 13,357 Mn HCG Gujar at CENTERS 26% 96% (29%)1 (95%)1 Karnataka 36% (34%)1 North India Fertility 3% Maharashtra CENTERS (1%)1 17% 4% (16%)1 (5%)1 Tamil Nadu 2% A.P . East India (2%)1 8% 9% 22 comprehensive cancer centers, 3 multispecialt
Slide 35: HCG Centers: Q4-FY22 Revenues
H C G CENTERS: Q 4 - F Y 2 2 R E V E N U E S INR million Growth Growth Period ended Mar'22 Q4-FY22 Q4-FY21 FY22 FY21 (y-o-y) (y-o-y) • Strong growth in revenue continues across Karnataka 1,262 1,038 21.5% 4,748 3,426 38.6% centers in Q4-FY22 Gujarat 913 757 20.6% 3,518 2,673 31.6% ▪ Jaipur: +220.7 %
Slide 36: HCG Centers: FY22 Operating Metrics
H C G CENTERS: F Y 2 2 O P E R A T I N G M E T R I C S Avg. Occupancy I n c re a s e in A v g . O c c u p a n c y R a te in Q 4 - F Y 2 2 ( y - o - y ) No. of centers1 Beds2 Rate (AOR)2 ▪ 59.9% vs 54.1% % (Consolidated) FY22: FY21: FY22: FY21 : FY22: FY21 : ▪ 59.1% vs 55.5 % (Existing centers) 25 25
Slide 37: HCG Centers: FY22 Regional Highlights
H C G CENTERS: F Y 2 2 R E G I O N A L H I G H L I G H T S Revenue Operating Centers Beds AOR ARPOB/Day (INR Mn) EBITDA% ▪▪ COE performance COE performance in FY22 in Q4-FY21 ▪ ▪ Revenue Revenue growthgrowth 39.6% 21.5% q-o-q y-o-y & 6.6% y-o-y 62.8% 41.8 K 4,748 23.8% ▪ ▪ ARPOB ARPOB of INR of INR
Slide 38: Milann: Implementing Strategic Initiatives
MILANN: I M P L E M E N T I N G S T R A T E G I C I N I T I A T I V E S Growth Bengaluru (5 centers) Period ended Mar'22 FY22 FY21 (y-o-y) M S Ramaiah Nagar New Registrations 4,633 3,578 29.5% Shivananda Indiranagar Whitefield IVF Cycles 1,747 1,450 20.5% Revenues (INR mn) 621 444 39.8% JP Nagar Nor
Slide 39: Capital Expenditure & Net Debt
C A P I T A L E X P E N D I T UR E & N E T D E B T INR million C A P I TA L E X P E N D I T U R E NET DEBT 31 Mar' 22 31 Dec' 21 31 Mar' 21 FY22 FY21 Net Debt HCG Centers Bank Debt (1) 3,543 3,451 3,954 Existing Centers 458 211 Vendor Finance(2) 333 248 453 Other debt 34 40 57 New Centers 246 140 Le
Slide 40: Thank You
For updates and specific queries, please visit www.hcgel.com or feel free to contact investors@hcgoncology.com © 2022 HealthCare Global Enterprises Limited., All Rights Reserved. HCG Logo is trademark of HealthCare Global Enterprises Limited. In addition to Company data, data from market research ag
HealthCare Global Enterprises — Q4 FY22 Earnings Presentation on 6ix