Metropolis Healthcare Ltd. · NSE:METROPOLIS
Metropolis Healthcare — Q2 FY21 Earnings Presentation
64 slides from Metropolis Healthcare's earnings presentation, Nov 11, 2020
Slide 1: Intimation of Investor Presentation to stock exchanges
Ref: MHL/Sec&Legal/2020-21/152 Date: November 11, 2020 To, Head, Listing Compliance Department Head Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1. G Block, Dalal Street, Mumbai - 400 001. Bandra -Kurla Comple
Slide 2: Reaching Out Responsibly - Investor Presentation November 2020
Reaching Out RESPONSIBLY Investor Presentation - November 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Metropolis Healthcare Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Q2 FY21 Financial & Operational Performance
Q2 FY21 Financial & Operational Performance
Slide 5: Q2 FY21 Financial & Operational Highlights
Q2 FY21 Financial & Operational Highlights Metropolis is a Strong Consumer Focused and Trusted Pathology Brand in the Indian Diagnostics space ... 59.7% Rs. 289 Crs 32.9% +440 bps YoY +29.2% YoY +470 bps YoY Revenue Share of Revenues EBITDA Margin B2C in Focused Quality Focus Cities (Non Covid) (bef
Slide 6: Non-Covid revenue continues to gain traction
Non-Covid revenue continues to gain traction.. +30.0% Non-Covid Revenues +12.1% 77.0 ✓ With Increased level of normalized operations, we have 59.2 52.8 seen increased revenue on month-on-month basis Down Down Up 6% ✓ As we witnessed increased unlock situation across the 31% YoY 20% YoY YoY country,
Slide 7: Healthy revenue growth led to operating leverage benefits
Healthy revenue growth… led to operating leverage benefits Month-wise Revenue (In Crs.) Month-wise EBIDTA (In Crs.) +13.1% +25.0% 87.3 ✓ As Covid-19 lockdown started easing and travel 77.1 28.9 23.1 restrictions on people were lifted, the business July July continued to pick up much faster than anti
Slide 8: Operating Leverage benefits played out in Q2FY21
Operating Leverage benefits played out in Q2FY21 Increased Utilization and Product Mix Higher utilization of Labs and increase in patient visits coupled with superior product mix Increased Home Visits Cost Efficiency Initiatives Increase traction in Home Visits Encouraging innovation and critical wh
Slide 9: Steady Focus on Balance Sheet continues
Steady Focus on Balance Sheet continues Debtors Days*# Working Capital Days* 55 11 49 ✓ We have continued to focus on collection efficiency and improved our Debtor days & Overall Working Capital days 4 ✓ Metropolis is a Zero-Debt company with growing cash & cash equivalents year on year basis. Cash
Slide 10: Q2 & H1 FY21 Consolidated Financial Performance
Q2 & H1 FY21 Consolidated Financial Performance EBIDTA Rs. (In Crs) Revenue Rs. (In Crs) Reported EBIDTA Rs. (In Crs) PAT (Rs. in Crs) Before CSR & ESOP 27.8% 25.0% 27.6% 24.3% 16.4% 14.7% Q2 Q1 +1.1% -9.1% -11.1% -9.5% 427 431 119 118 70 108 105 63 223 63 63 289 43 29% 95 92 61 40% 51% 48% 203 56 5
Slide 11: Operating Performance
Operating Performance No. of Patient Visits (In Mn.) Revenue Per Patient (In Rs.) -19.0% +28.6% 4.92 +8.1% +12.6% 1,103 10.0 3.98 857 857 926 ✓ Revenue per Patient & Revenue per 8.9 7.7 2.60 Test has increased on account of 7.0 2.62 high value Covid-19 test 2.32 ✓ Increased volumes of the 1.37 speci
Slide 12: Network Expansion
Network Expansion Laboratory Network Service Network Lab on Lease -10.4% Greenfeild ARC +9.3% 125 2,731 2,731 119 124 Third Party PSCs 20 2,336 2,447 106 19 20 Owned PSCs 598 598 95 6.4x 8 477 2 575 1,650 520 100 104 105 1,873 1,873 1,721 93 98 887 1,506 428 308 879 151 356 117 223 251 255 260 260 2
Slide 13: Share of B2C Business in Focus Cities (Non-Covid) at 60% in Q2FY21
Share of B2C Business in Focus Cities (Non-Covid) at 60% in Q2FY21 B2C Contribution in Focus Cities for Q2FY21 (excl. Covid-19 Revenues) Q2FY20 Q2FY21 ✓ Excluding Covid-19 revenues, our B2C contribution 40% continues to increase 45% ✓ Our aspirations is to achieve 65% B2C contribution in 55% 60% foc
Slide 14: Market Dynamics – a long runway of growth
Market Dynamics – a long runway of growth Revenue Mix between Focus, Seeding & Others Cities Revenue Mix between Geographies 5% 8% 2% 10% 25% 22% 26% 25% Q2FY20 Q2FY21 Q2FY20 Q2FY21 56% 57% 21% 56% 59% 19% 5% 4% Others Seeding Focus North South East West International Diversified Revenue Mix ✓ Incre
Slide 15: High Value Specialized Tests is increasing
High Value Specialized Tests is increasing… Q2FY20 Q2FY21 Q2FY20 Q2FY21 Volume Mix (Including Covid-19) Value Mix (Including Covid-19) 2% 8% 5% 12% 13% 19% 1% 23% 40% 47% 23% 36% 39% 37% 60% 35% Routine Semi-Specialized Volume Mix (Excluding Covid-19) Specialized Value Mix (Excluding Covid-19) Welln
Slide 16: Human Resource Initiatives
Human Resource Initiatives Healthy and Motivated Employees is a priority for Metropolis ✓ Metropolis announces increments to its country wide employees for their selfless services during the ongoing pandemic ✓ MD Shaurya Award for the frontline staff for standing strong with the core purpose of MHL.
Slide 17: Technology Initiatives
Technology Initiatives Strengthening Existing IT systems ✓ Inhouse support for Digital Platform - enabled reduction of resolution TAT and reduction on daily ticket counts ✓ Health Data Analytics – Delivered dashboards of Patient Summary, Visit Summary, Department & Test Summary Chronic Patient Analy
Slide 18: Ramping up Home Testing offerings
Ramping up Home Testing offerings Home Visits as a % of B2C business (Excluding Covid-19) Productivity Enhancement Higher Demand for Home 5 1 Increased productivity and Testing collection personnel to cater to this Witnessing a surge in Home +500 bps increased opportunity; driving test requests espe
Slide 19: Enhancing Customer Experience… Digitally
Enhancing Customer Experience… Digitally Increased communication efforts through Rigorous Campaigns to assure customers on safety and hygiene of Metropolis centers and Home testing services Fully Integrated Website and APP for Online booking, multiple payment modes, digital reports, report storage a
Slide 20: End to End Digital Experience
End to End Digital Experience… All customer communications and engagement digitally with customers through using best in class technology Digital Records Engagement with customers across Digital Partnerships leading to all mediums of communication - B2C - Omni Digital Partnerships increase in volume
Slide 21: Digital Initiatives showing results
Digital Initiatives showing results… Initiatives taken Business Impact Metropolis Website Revamp 5x increase in website Faster Growth in ✓ User friendly and responsive website traffic Home Visit revenue ✓ User account, Download report ✓ E-comm website ✓ SEO friendly site Hyper local activity: 25MN A
Slide 22: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q2FY21 Q2FY20 Y-o-Y H1FY21 H1FY20 Y-o-Y Revenue from Operations 288.6 223.3 29.2% 431.2 426.6 1.1% Cost of Raw Material Consumed 74.4 52.7 112.6 100.9 Laboratory Testing Charges 0.9 1.5 2.9 3.1 Employee Expenses 46.2 49.6 91.6 96.6 Other Ex
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Sep-20 Mar-20 Equity & Liabilities (Rs. Crs.) Sep-20 Mar-20 Non-current assets 349.9 355.2 Equity 613.9 525.2 Property, Plant and Equipment 118.7 121.2 Equity Share capital 10.2 10.1 ROU Assets 52.5 59.7 Other equity 601.8 513.4 Goodwill 90.4 90.3 Non Con
Slide 24: Consolidated Cash Flow
Consolidated Cash Flow Cash Flow Statement (Rs. Crs) H1FY21 H1FY20 Profit Before Tax 84.9 92.5 Adjustments for Depreciation and other items 40.6 32.2 Operating profit before working capital changes 125.5 124.8 Changes in working capital -0.06 11.5 Cash generated from operations 125.4 136.2 Direct ta
Slide 25: Covid-19 - A catalyst for Consolidation of Indian Diagnostic Industry
Covid-19 - A catalyst for Consolidation of Indian Diagnostic Industry 05 Faster Consolidation and 01 Strong Brands to benefit 03 Covid-19 capable labs Unorganised standalone labs Covid-19 will become a new regulatory adoption are facing challenges in terms normal test in times to come,; We expect fa
Slide 26: Overview
Overview
Slide 27: We are Metropolis: The Pathology Specialist
We are Metropolis: The Pathology Specialist To be a respected healthcare brand trusted by clinicians, patients and stakeholders. Positively impact lives of patients Vision in their most anxious times and turn their anxiety in to assurance. Helping people stay healthy, by accurately revealing their 3
Slide 28: Journey to Leadership Position
Journey to Leadership Position ✓ First Referral Laboratory Set- ✓ Ameera Shah takes charge ✓ Secondary transaction by ✓ Exit of Warburg Pincus, ✓ Strong Thrust on Retail up by Founder & Chairman Dr. Foxcreek Investment Limited management control by frontend Expansion ✓ First major acquisition - Sush
Slide 29: Three decades of Delivering Value to Stakeholders
Three decades of Delivering Value to Stakeholders Leadership Position Across Industry METROPOLIS Focus Area ACCREDITATION CUSTOMER & QUALITY EXPERIENCE ROCE SPECIALITY SCORES SCORE BUSINESS INCREASED INFRASTRUCTURE PRODUCTIVITY REVENUE PER REALISATION PER TEST MENU OF YOUNG PATIENT PATIENT NETWORK 2
Slide 30: Key Drivers for Growth
Key Drivers for Growth 01 Industry Growth 05 Expansion Plan 02 Value Chain 06 Quality 03 Business Model 07 People 04 Service Network 08 Digital Transformation 29
Slide 31: Diagnostic Industry Poised to grow
1a. Diagnostic Industry Poised to grow… Size of Indian Healthcare Industry Size of Indian Diagnostics Market Indian Diagnostics Industry Breakup (in Billion $) 6.0% 4.0% 35% 12.3 9.0% Healthcare Delivery - Hospitals Pharma 9.1 42% Pathology 13.0% Medical Devices Radiology 68.0% Diagnostics 58% Healt
Slide 32: Top players to continue to acquire market share of standalone centers
1b. Top players to continue to acquire market share of standalone centers Brand Awareness Increased brand awareness amongst patients and customers towards quality, reliability and test accuracy Service + Scale Large Test menu Large Test menu by organized diagnostics chains Factors leading Consolidat
Slide 33: Presence in key pockets of Value Chain
2.Presence in key pockets of Value Chain Diagnostic Industry - Fragmented Routine Test Metropolis Focus Highly Fragmented Market Low Quality Standard Majority Diagnostic Players Technician + Run Lab Low on Technical Qualifications & Moderate Competition Presence across Accreditations (99.9% labs rem
Slide 34: Hub & Spoke Model to scale efficiently
3. Hub & Spoke Model to scale efficiently Home Collection Global Reference Lab (GRL) Individual Patient (B2C) Wholesale (B2B) RRL / Satellite Lab Express Lab Third Party Lab / Hospitals / ARCs Collection Patient Centres Patient Leverage Widespread Delivery to our Enhances Collection of Greater netwo
Slide 35: Patient Centric Network
4.Patient Centric Network Global and More than ~4,000 Present in 19 States 35+ Years National Over 10,000 Patient Test’s & Profiles & 210 cities Quality Touch Points of Credible Operations Accreditations Why Metropolis ? Collection ✓ Conclusive Diagnosis with Large Centres Pics test Menu backed by H
Slide 36: Asset Lite Expansion Plan
5. Asset Lite Expansion Plan Asset Light Model Network Expansion Strategy Doctor APSC/ Lab on ✓ Focus on Asset Light Model to achieve Geographic Expansion with Bleeding DAPSC Lease High Scalability Point (DBP) ✓ The A-PSC and D-APSC Model allows us to grow our revenues by providing management and br
Slide 37: Quality in Core
6a. Quality in Core Quality Scores of 98.5% in 2018-19 by College Quality protocols following global standards of American Pathology 99.9% of industry labs remain un-accredited with lack of minimum standards in the industry Large Investments in Focus on Governance Information and rigorous audit Tech
Slide 38: Globally Compliant Quality Standards
6b. Globally Compliant Quality Standards No. of Audits Conducted by PAC Team “Global Lab Accreditations” FY 17-18 18-19 H1 20 FY 20 665 1,312 597 1,057 ✓ PAC Team: Special Pre Analytical Care Team constituted as part of the Quality Assurance Team ✓ This team conducts thorough internal audits as per
Slide 39: People are our greatest asset
7. People are our greatest asset ✓ New HR Management System for ✓ Strong culture equal opportunity ✓ Full Fledged Learning Management automated processes improving workplace System that is used for daily training productivity and ensuring availability of across the Company. employee data on demand ✓
Slide 40: Leveraging IT for Competitive Advantage
8. Leveraging IT for Competitive Advantage 1 2 3 4 Improving Business revenue Improved Operational Improve Customer Cost Saving & Optimization generation capabilities Efficiency Experience ✓ Zero Data Loss; 100% data ✓ IBM Watson Campaign Automation replication in remote location ✓ Mobility Applicat
Slide 41: Digital Transformation to improve efficiency
8a. Digital Transformation to improve efficiency 1 Standardization Achieve standardization across 2 Reduced Errors Reduce incidence of errors due to human intervention our operations Patients & Customers 3 Technical Operations Provide convenience to our 5 Monitor Technical Operations patients and cu
Slide 42: Mobile App Launched in Q3FY20 with features enabling ease of access
Mobile App Launched in Q3FY20 with features enabling ease of access Expert TruHealth Risk Assessment TruHRA Customized Check-ups Booking Appointments See, Share & Store Fitness Tracker Reports Inner Health Tracking Medication Tracker Parameters Doctor’s, Hospital’s & Chat with Experts Metropolis nea
Slide 43: TruHealth App – Increasing Traction
TruHealth App – Increasing Traction App Review snapshots Total Installs: 01 Active Users 5,907 2,241 06 02 Leads Generated (Jan to Mar): 460 leads TruHealth App Total Stats Reviews: 68 05 03 Avg. Rating: 4.2 Stars Total Ratings by 4,206 Our Pilot Launch is successful with Positive reviews & Rating a
Slide 44: Future Strategy
Future Strategy 01 Increase Services 02 Increase Scale 43
Slide 45: Customer Centricity: In everything we do
Customer Centricity: In everything we do 01 02 03 04 Easy to Interpret Test Sample Collection from Conclusive Diagnosis Digital Access Report Doorstep We also have a policy of ensuring We have developed a Mobile Conclusive Diagnosis to our Application We offer our patients a Detailed We have increas
Slide 46: Sustainable Growth across Network
Sustainable Growth across Network Network of 210 Cities Criteria % of Revenue for FY20 Strategy ✓ Increasing productivity of Collection Centers ✓ Enhancing our Laboratory Capacity and Test Menu by adding Latest Machines and Technology ✓ High Potential Market Focus Cities ✓ Expanding B2C share of Bus
Slide 47: Focus on Profitable B2C Business
Focus on Profitable B2C Business Increase B2C sales mix Deeper Network Strengthen Productivity of Wellness initiatives Penetration Metropolis Brand existing young network for consumers Deeper centre penetration Expand Branded third- Increase number of referring Creating an easy and engaging in Focus
Slide 48: Growing Inorganically – A Win-Win Strategy
Growing Inorganically– A Win-Win Strategy Build Industry Best practices Introducing Standardized Machines and SOPs in a phased manner resulting in efficiency and quality enhancement Access to Metropolis Network Providing acquired entities access to Metropolis Sales and Marketing Network to improve t
Slide 49: Successful Track Record of Inorganic Strategy: 22 Acquisitions in 15 years
Successful Track Record of Inorganic Strategy : 22 Acquisitions in 15 years Revenue at the time of Few of the Acquired Companies Year of Acquisition Location Revenue for FY20 acquisition Sudharma Metropolis Health Services 2003 Kerala Rs. 1.8 Crores Rs. 49.6 Crores Private Limited Golwilkar Metropol
Slide 50: Plenty of Opportunities for Growth
Plenty of Opportunities for Growth… Growing our offering of Test Packages to Increase Revenue Test Packages Metrics. Customized packages to Institutional Customers Expansion and Personalized Packages to Individual Patients are key Leverage our vast capabilities in Molecular Diagnostics, Aggressive N
Slide 51: Historical Financial & Operational Performance
Historical Financial & Operational Performance
Slide 52: Pan India Presence
Pan India Presence… Metropolis Service Network Metropolis Service FY19 FY20 Network Laboratories 119 125 Owned PSC’s 255 260 Third Party PSC’s 1,506 1,873 ARC’s 575 598 Total 2,455 2,731 On Consolidated Basis Maps not to scale. All data, information, and maps are provided "as is" without warranty or
Slide 53: …with Aggressive Network Expansion Strategy
…with Aggressive Network Expansion Strategy Laboratory Network Service Network ARC Third Party PSCs +8.6% 124 Owned PSCs 2,731 119 106 2,336 598 95 +58.9% 89 575 1,650 520 1,873 887 1,506 308 879 428 151 356 117 223 251 255 260 160 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Network Strategy H
Slide 54: Better than industry growth
Better than industry growth Revenue (In Rs. Crs.) Bolstering Growth in Wellness Segment Metropolis Wellness revenue contribution for +15.8% 856 Metropolis is 7.9% in FY20 760 644 545 475 This market is expected to grow at a CAGR of 20% over next 3 financial years (Frost & Sullivan) FY16 FY17 FY18 FY
Slide 55: Robust Operating & Financial Performance
Robust Operating & Financial Performance No. of Patient Visits (In Mn.) Revenue Per Patient (In Rs.) +5.5% Metropolis realization per +9.7% 10.0 854 856 test and sample is higher than 836 8.9 778 industry owing to:- 7.7 692 6.9 7.0 ✓ ~37% of specialised test FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 F
Slide 56: Well growing B2C Mix
Well growing B2C Mix Retail contribution in Focus Cities to Total Revenue 56% 52% 45% 48% 43% Primary Strategy of the Company is to increase the Retail share in focus cities to 65% FY16 FY17 FY18 FY19 FY20 Chart shows B2C contribution over the years in focus cities; Mumbai, Chennai, Bangalore, Surat
Slide 57: Financial Highlights
Financial Highlights Revenue (In Rs. Crs.) Reported EBITDA (In Rs. Crs.) ROCE (%) 856 232 +15.8% +15.6% 46.5% 760 206 43.6% 42.8% 644 173 38.3% 40.0% 545 155 475 130 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 EBITDA (%) Reported PAT (In Rs. Crs.) ROE (%) +11.7% 27.3%
Slide 58: Profit & Loss Statement
Profit & Loss Statement Profit & Loss (Rs. Crs.) FY20 FY19 FY18 FY17 FY16 Revenue from Operations 855.5 760.1 643.6 544.7 475.5 Cost of Material Consumed 204.1 173.5 145.9 135.1 124.6 Laboratory testing charges 6.9 5.6 5.7 2.5 3.1 Total Raw Material 211.0 179.1 151.6 137.6 127.7 Gross Profit 644.5 5
Slide 59: Balance Sheet
Balance Sheet Assets (Rs. Crs.) Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Equity & Liabilities (Rs. Crs.) Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Non-current assets 355.2 247.9 230.1 230.1 170.6 Equity 525.2 420.0 429.1 344.1 293.9 Property, Plant and Equipment 121.2 116.7 112.3 105.2 105.6 Equity Share capital
Slide 60: Board of Directors and Management Team
Board of Directors and Management Team
Slide 61: Board of Directors
Board of Directors Dr. Sushil Kanubhai Shah Ameera Sushil Shah Chairman & Executive Director Managing Director Holds a bachelor’s degree in Medicine and Surgery Holds a bachelor’s degree in Business Administration and a degree of Doctor of Medicine in Pathology from the University of Texas and also
Slide 62: Management Team
Management Team Vijender Singh Dr. Nilesh Shah Chief Executive Officer President and Chief of Science & Innovation Holds a bachelor’s degree in Science from Kurukshetra Holds a master’s degree in Engineering from University of University and completed an Executive Education Mumbai and a Diploma in M
Slide 63: Recent Awards and Accolades
Recent Awards and Accolades Period Particulars Our MD, Ms. Ameera Shah has been listed as the Most Powerful Women in India for the 4th November 2020 consecutive year by Fortune India Metropolis Healthcare Ltd won the 2020 Indian Diagnostic Services Industry Company of the Year October 2020 Award org
Slide 64: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Metropolis Healthcare Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L73100MH2000PLC192798 CIN - U74140MH2010PTC204285 Mr. Rakesh Agarwal - CFO Mr. Shogun Jain / Mr. Sagar Shroff Email Id – rakesh.agarwal@metropolisindi
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