Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (June 2011)
27 slides from Apollo Hospitals Enterprise's investor presentation, June 2011
Slide 1: Investor Presentation June 2011
Investor Presentation June 2011
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 Favourable macro and healthcare indicators Leading hospitals player in India Clinical excellence and strong brand value Strong operating and financial track record Well planned strategy to deliver the next phase
Slide 4: Business snapshot
Business snapshot Leading private sector healthcare services provider in India Business overview Consolidated financials(2) • Promoted by Dr. Prathap C. Reddy, who has been conferred the Padma Vibhushan in 2010 (Rs. mm) FY09 FY10 FY11 and the Padma Bhushan in 1991 by the Government of India • Key bu
Slide 5: Strong business fundamentals developed over almost three decades of history
Strong business fundamentals developed over almost three decades of history Business evolution 1983 - 88 1989 - 2000 2001 - 04 2005 - 10 2011 - 14 Apollo Hospital, Indraprastha Apollo Gleneagles, Imperial Hospital, Plan to add Chennai Apollo Hospitals, Kolkata Bangalore 2,418 beds by Apollo Health C
Slide 6: Key highlights
Key highlights Leading private sector healthcare services provider in India Favourable macro and healthcare indicators Leading hospitals player in India Clinical excellence and strong brand value Strong operating and financial track record Well planned strategy to deliver the next phase
Slide 7: Favourable industry opportunity: Macro indicators
Favourable industry opportunity: Macro indicators Demand for healthcare services in India is expected to grow rapidly owing to favourable changes in demographics. Private sector players are well-positioned to leverage this opportunity given low contribution of government spending Healthcare expendit
Slide 8: Indian healthcare: Demand drivers
Indian healthcare: Demand drivers Rising incidence of lifestyle diseases, improving healthcare insurance penetration and increasing medical tourism are expected to drive demand In-patient / out-patient market size(2) (Rs. bn) No of hospitalized cases (mm) and In-patient market(2) (Rs. bn) Patient vo
Slide 9: India healthcare services: Opportunity
India healthcare services: Opportunity Healthcare demand underpinned by lack of infrastructure and large investments required to achieve global benchmarks Beds per 10,000 people(1) (2009) Key highlights (1,2) India lags behind other developed and emerging economies in Under-penetrated market with lo
Slide 10: Key highlights
Key highlights Leading private sector healthcare services provider in India Favourable macro and healthcare indicators Leading hospitals player in India Clinical excellence and strong brand value Strong operating and financial track record Well planned strategy to deliver the next phase
Slide 11: Leading hospitals player in India
Leading hospitals player in India Apollo is a leading player in the Indian hospitals space in geographic presence as well as business span and breadth of services offered (1) Pan India # of Beds: 8,717 # of Hospitals: 54 CARE (3) Hospitals Geographic Presence Regions Multiple Fortis Apollo is one of
Slide 12: Deep geographic presence across India
Deep geographic presence across India Pan India presence across metros, large cities, semi-urban and rural areas Total Capacity Operational Beds No. of Hospitals Category wise Owned 5,842 4,986 37 Managed 2,875 N.A 17 Grand Total 8,717 N.A 54 Cluster wise (owned) Chennai 1,155 1,153 9 Hyderabad 1,00
Slide 13: Key hospitals' overview
Key hospitals’ overview Apollo Accredited by Joint Commission International, USA Flagship hospital of the group Hospitals, Declared as a 'Centre of Excellence' by the Government of India Super-Specialty hospital with over 60 "Best Private Sector Hospital in India" by The Week magazine for 3 out of C
Slide 14: Key highlights
Key highlights Leading private sector healthcare services provider in India Favourable macro and healthcare indicators Leading hospitals player in India Clinical excellence and strong brand value Strong operating and financial track record Well planned strategy to deliver the next phase
Slide 15: Clinical excellence and quality healthcare services
Clinical excellence and quality healthcare services High operational effectiveness and pioneering technology has led Apollo to a leading position in quality healthcare services in India Healthcare excellence Superior delivery Outcomes Over 9,095 percutaneous A day at Apollo Hospitals – with appr
Slide 16: Strong brand value
Strong brand value International accreditations and several awards won are a testimony to our strong brand value Apollo Health City, Hyderabad recognized as Apollo Hospital Stamp released in the "Best Medical Tourism Facility for 2009- November 2009 10” by the Ministry of Tourism of India Apollo Che
Slide 17: Key highlights
Key highlights Leading private sector healthcare services provider in India Favourable macro and healthcare indicators Leading hospitals player in India Clinical excellence and strong brand value Strong operating and financial track record Well planned strategy to deliver the next phase
Slide 18: Strong operating metrics: Hospitals
Strong operating metrics: Hospitals Continuous improvement in key operating metrics is helping drive revenues and profitability In-patient admissions (’000) (1) Bed occupancy rate(2) (%) Operational highlights Continued Inpatient volumes growth Consistent bed utilization Occupancy rates remain high
Slide 19: Cluster wise operational performance
Cluster wise operational performance AHEL Standalone Hospitals Chennai cluster Hyderabad cluster Others (1) Significant subs/ JVs/ associates (2) Year FY10 FY11 Growth FY10 FY11 Growth FY10 FY11 Growth FY10 FY11 Growth yoy (%) yoy (%) yoy (%) yoy (%) No. of Operating beds 1,118 1,153 670 809 1,007 1
Slide 20: Capturing growth in standalone pharmacies
Capturing growth in standalone pharmacies Large network of 1,199 standalone pharmacies with presence across 20 states in India Key highlights Financial performance • Offers a wide range of medicines and surgical products, hospital • Consistent growth in standalone pharmacy business revenue consumabl
Slide 21: Robust financials: Revenue and profitability
Robust financials: Revenue and profitability Financial performance has shown consistent improvement across hospitals (mature and new), as well as across businesses (hospitals and standalone pharmacies) Performance highlights Total consolidated revenue(1) (Rs. mm) Strong growth in revenue across busi
Slide 22: Robust financials: Return on capital employed
Robust financials: Return on capital employed 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% 1 2 15% Efficiency 14
Slide 23: Key highlights
Key highlights Leading private sector healthcare services provider in India Favourable macro and healthcare indicators Leading hospitals player in India Clinical excellence and strong brand value Strong operating and financial track record Well planned strategy to deliver the next phase
Slide 24: Key strategies
Key strategies Establish / strengthen – Aim to ensure dominant bed share in key strategic markets – Chennai, presence in key strategic markets Hyderabad, Delhi, Kolkata, Ahmedabad, Mumbai and Bangalore Focus on owned hospitals – Plan to add 2,418 owned beds by FY14 for expansion – Address growing ma
Slide 25: Expansion plans
Expansion plans Well planned strategy to address growing demand for healthcare service delivery in existing markets, new large markets and semi-urban markets Key Hospital expansion plan Strategy for expansion Total Estimated AHEL’s Share Type of No. of Project Cost of Cost Focus on owned hospitals L
Slide 26: Key highlights
Key highlights Leading private sector healthcare services provider in India Favourable macro and healthcare indicators Leading hospitals player in India Clinical excellence and strong brand value Strong operating and financial track record Well planned strategy to deliver the next phase
Slide 27: 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 (M.D, MBBS, FCCP, FICA K. Padmanabhan Group President and has been with the company since 1996 Reddy and FRCS) Responsible for business and strategic initiative
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