Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP

Apollo Hospitals Enterprise — Investor Presentation (June 2024)

61 slides from Apollo Hospitals Enterprise's investor presentation, June 2024

  1. Slide 1: Apollo Hospitals Enterprise Limited Investor Presentation

    Apollo Hospitals Enterprise Limited Investor Presentation June 2024

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this presentation is provided by Apollo Hospitals Enterprise Limited (the “Company”) to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor an

  3. Slide 3: Content

    Content India’s Largest Integrated Healthcare System Clinical Pioneers Attractive Industry Opportunity Strong Financial & Operational Track Record Prioritizing ESG Annexure © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 3

  4. Slide 4: India's Largest Integrated Healthcare System

    India’s Largest Integrated Healthcare System © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 4

  5. Slide 5: India's Largest Integrated Healthcare System

    India’s Largest Integrated Healthcare System Apollo Specialty Services Apollo • Culture of innovation Hospitals CLINICAL • Clinical expertise OUTCOMES Apollo APOLLO CLINICS Pan–India • Learning Organisation Health Checks (Retail Healthcare) Hospitals One Patient, Empowered and engaged patients; fost

  6. Slide 6: Largest Hospital Chain in India

    Largest Hospital Largest Offline India’s Leading Retail 3rd Largest Private Chain in India Pharmacy in India Healthcare Network Health Insurer in India 73 hospitals 6000+ stores in 1200+ cities and 265 primary clinics, 180 dental Fastest insurer to reach 10,121 beds towns clinics, 67 sugar clinics,

  7. Slide 7: Largest Pan India Hospital Chain

    Largest Pan India Hospital Chain Capacity Operational/ Hospitals Beds1 Census Beds Overall Total 73 10,121 9,363 Delhi: 5 Amritsar: 1 Noida: 1 Owned Hospitals 45 8,700 7,942 Bilaspur: 1 Kanpur: 1 Lucknow: 1 Indirapuram: 1 Managed Hospitals 6 790 790 Jaipur: 1 Day Surgery & 22 631 631 Cradle (AHLL) A

  8. Slide 8: AHLL: Transforming Retail Health through access and convenience

    AHLL: Transforming Retail Health through access and convenience Apollo Health & Lifestyle Ltd Out-of-Hospital care • Outpatient Clinics • Diagnostics • Day Surgery centers • Single Specialty Facilities :- Dialysis, Sugar and Dental Organizing the unorganized • Pathology – Organized chains represent

  9. Slide 9: AHL | India's Largest Omni-channel Healthcare Platform

    AHL| India’s Largest Omni-channel Healthcare Platform Apollo HealthCo Ltd Apollo 24|7 Offline Pharmacy Distribution Key Differentiators • India’s largest Organized Pharmacy Platform with Unmatched Size • Built digital business scale in 1/3rd the • 35 Mn.+ Registered Users - 630,000 Daily time taken

  10. Slide 10: Clinical Pioneers

    Clinical Pioneers © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 10

  11. Slide 11: South Asia's First ZAP-X Gyroscopic Radiosurgery Platform

    Clinical pioneers bringing in tectonic shifts in the healthcare industry Bringing in Latest Technologies First 25 Robotic Advanced G4 Proton therapy 640 surgical systems Diagnostics Cyber-knife for cancer slice CT Largest minimally First MRI, CT, Pet CT in India Asia Pacific’s most advanced First in

  12. Slide 12: Patient First Mindset

    Patient First Mindset Clinical Excellence Service Excellence Execution Excellence Medically Known for Patient Care Through The Apollo Family Value for Money Clinical Excellence Service Excellence COEs Patient Care Plan Clinician Engagement Case Mix Outcomes Ward as a unit Best places to work Communi

  13. Slide 13: Apollo Hospitals – Quality Framework

    Apollo Hospitals – Quality Framework Apollo Hospitals Group aims at establishing the highest standards of clinical care and patient safety for all its hospitals irrespective of their location or size. Zero Harm Initiative Apollo Clinical Excellence 3.0 Anti-Microbial Stewardship Outcomes Review Prog

  14. Slide 14: Excellence Driven by Academics, Skilling and Research

    Excellence Driven by Academics, Skilling and Research Academics Skilling Research Global Workforce Development Apollo Med Skills Campus Education AIMSR, Hyderabad 11 Nursing schools Learn, Earn, Excel, Settle or Return The official in India journal of Apollo AIMSR, Chittoor Healthcare sourcing – tra

  15. Slide 15: Apollo early mover and adopter of advances in Clinical AI

    Apollo early mover and adopter of advances in Clinical AI 5 Key Themes in AI In Collaboration with: Clinical Intelligence Engine 1 Million API Discharge Risk Scores Calls in FY24 prediction in 24/48 Throughput and Disease hours 2 Million+ Optimization Progression API Calls Models Gen AI for Discharg

  16. Slide 16: Resulting in Higher Clinical Volumes

    Resulting in Higher Clinical Volumes Pioneers in cutting edge treatment FY24 Centers of Excellence First combined First kidney & Liver liver transplant ~78,000 Cardiac transplant Procedures1 ~272,000 Radiotherapy Fractions First simultaneous First bilateral Minimally Kidney-Pancreas Invasive Knee 37

  17. Slide 17: Attractive Industry Opportunity

    Attractive Industry Opportunity © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 17

  18. Slide 18: Hugely under-penetrated market with attractive dynamics

    Hugely under-penetrated market with attractive dynamics Indian healthcare delivery market poised for robust growth in the medium term Public healthcare expenditure is low, with private sector Healthcare delivery landscape includes… Growing Indian Healthcare Delivery industry accounting for a lion’s

  19. Slide 19: Unlocking growth opportunities

    Unlocking growth opportunities….. The impact of Infrastructure lag and shifting market demands ………Infrastructure Lag ………increasing NCDs Hospital beds (per 10,000 population) Physicians (per 10,000 population) Nurses (per 10,000 population) Others Other NCDs World Avg - ~29 World Avg - ~16 7 World Av

  20. Slide 20: Rapid adaption of digital and telecom infrastructure

    …… Rapid adaption of digital and telecom infrastructure By 2025, Digital Will Transform India’s Economy, Sector By Sector Emerging technologies in Healthcare delivery Internet Subscriber’s growth…. CAGR : 5-6% Growth potential 170X Financial Services $170bn Telemedicine E-pharmacy 1,100 70X 825 825

  21. Slide 21: "Heal in India" Global hub for medical and wellness tourism

    “Heal in India” Global hub for medical and wellness tourism HEAL IN INDIA The medical tourism Growth in medical tourism expected Initiative, aims to promote market valued at primarily due to (i) Technologically Treatments mostly sought after Medical Value Travel USD 6 billion in advanced hospitals (

  22. Slide 22: Strong Financial & Operational Track Record

    Strong Financial & Operational Track Record © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 22

  23. Slide 23: Strong Growth in Revenues across Business

    Strong Growth in Revenues across Business FY24 FY13-FY24 FY13-FY24 FY13-FY24 $2.29 billion 16% 14% 20% Consolidated Revenue1 CAGR (HCS incl AHLL) CAGR (Pharmacy)2 CAGR (Consolidated Rev) 98,670 Healthcare services SAP Others 86,768 79,891 78,269 67,045 57,297 51,426 50,022 48,206 45,157 40,851 38,86

  24. Slide 24: Aided by Strong Operating Metrics

    …… Aided by Strong Operating Metrics Bed Occupancy Rate(1) % In-patient Admissions (‘000) Operating Beds 540 569 4,257 4,767 5,153 5,549 5,811 6,321 6,724 6,940 7,111 7,246 7,491 7,409 7,875 7,860 7,945 478 460 428 451 73% 73% 71% 72% 71% 399 68% 66% 68% 67% 65% 374 63% 64% 63% 64% 332 354 352 55% 3

  25. Slide 25: and Healthy Return on Capital Employed

    ……and Healthy Return on Capital Employed ROCE – Healthcare Services Offline Pharmacy Distribution excl 24|7 Operating cost 46% Healthcare services excluding CWIP Health Co 39% 33% 31% 31% SAP 25% 26% 20% 21% 19% 17% 14% 14% 16% 15% 13% 14% 14% 15% 15% 11% 10% 11% 10% 9% 6% 6% 7% 3% FY 09 FY 10 FY 11

  26. Slide 26: Consolidated Financials Q1FY25

    Consolidated Financials Q1FY25 (` mio) Digital Health & Healthcare Diagnostics & ` Mio Pharmacy Consol Overall Consolidated Revenue grew by 15% to Services Retail Health Distribution Total Revenues 26,373 3,661 20,821 50,856 ` 50,856 mio. EBITDA (Pre 24|7 Cost) 6,217 309 1,721 8,247 margin (%) 23.6%

  27. Slide 27: Healthcare Services Financials Q1FY25

    Healthcare Services Financials Q1FY25 (` mio) ` Mio Q1FY25 Q1FY24 YoY Healthcare Services Revenue grew by 15% in Q1FY25 No of Hospitals 45 43 (Inpatient Volume grew by 11% ; Price & case mix of 4%) Operating beds 7,942 7,798 2% Occupancy 68% 62% Occupancy for Q1FY25 at 68% vs 62% in Q1FY24 IP Discha

  28. Slide 28: Inpatients Revenue Mix Q1FY25

    Inpatients Revenue Mix Q1FY25 Paed IPS Transplts Uro 3% PSU & Govt 3% Cardio 6% Nephro 4% 19% Self Pay 4% 10% Obs&Gynac 4% Gen Surg 4% 38% 8% Inpatient Inpatient Others Specialty Mix Payor Mix 17% Onco* 8% Internal Med 6% 47% Gastro 10% 10% Neuro Insurance & Pvt Ortho * Oncology includes Radiotherap

  29. Slide 29: Healthcare Services: Operational Snapshot

    Healthcare Services : Operational Snapshot Metros: Chennai, Hyderabad, Bangalore, Mumbai, Kolkata and Delhi Metro Non Metro Non Metros (includes Tier1 & Tier2 cities) Ahmedabad, Bhubaneshwar, Lucknow, Operating Indore, Guwahati, Madurai, Trichy, 4,535 3,407 Nellore,Vizag, Kakinada, Mysore, Nashik, B

  30. Slide 30: Tamil Nadu Region

    Tamil Nadu Region Metro:- Chennai ; Non Metro:- Madurai, Karur, Karaikudi, Trichy and Nellore Nellore Nellore Tamil Nadu Region Chennai Q1FY25 Q1FY24 YoY Operating Beds 2,051 2,088 -1.8% Bed Occupancy Rate (%) 64% 58% Inpatient volume 37,519 35,246 6.4% Trichy Outpatient volume(1) 150,055 139,143 7.

  31. Slide 31: AP, Telangana Region

    AP, Telangana Region Metro:- Hyderabad; Non Metro:- Karimnagar, Vizag and Kakinada Vishakhapatnam AP, Telangana Region Q1FY25 Q1FY24 YoY Operating Beds 1,240 1,270 -2.4% Bed Occupancy Rate (%) 63% 54% Inpatient volume 19,729 18,529 6.5% Kakinada (1) Karimnagar Outpatient volume 67,687 48,383 39.9% H

  32. Slide 32: Karnataka Region

    Karnataka Region Metro:- Bangalore; Non Metro:- Mysore Karnataka Region Q1FY25 Q1FY24 YoY Operating Beds 746 756 -1.3% Bed Occupancy Rate (%) 76% 61% Inpatient volume 17,295 15,093 14.6% (1) Outpatient volume 60,215 47,663 26.3% Inpatient ALOS (days) 2.99 2.80 6.7% Inpatient revenue (` mio) 2,643 2,

  33. Slide 33: Eastern Region

    Eastern Region Metro:- Kolkata; Non Metro:- Guwahati, Bhubaneshwar, Bilaspur and Rourkela Eastern Region Q1FY25 Q1FY24 YoY Operating Beds 1,827 1,771 3.2% Guwahati Bed Occupancy Rate (%) 75% 69% Inpatient volume 32,934 29,577 11.4% (1) Outpatient volume 109,461 99,822 9.7% Kolkata Inpatient ALOS (da

  34. Slide 34: Western Region

    Western Region Metro:- Navi Mumbai; Non Metro:- Nashik and Ahmedabad Western Region Q1FY25 Q1FY24 YoY Ahmedabad Operating Beds 861 802 7.4% Bed Occupancy Rate (%) 55% 50% Inpatient volume 12,543 10,154 23.5% Outpatient volume(1) 40,321 54,624 -26.2% Nashik Inpatient ALOS (days) 3.42 3.56 -3.9% Mumba

  35. Slide 35: Northern Region

    Northern Region Metro:- Delhi; Non Metro:- Lucknow and Indore Northern Region Delhi Q1FY25 Q1FY24 YoY Operating Beds 1,217 1,111 9.5% Lucknow Bed Occupancy Rate (%) 72% 74% Inpatient volume 26,842 23,924 12.2% (1) Outpatient volume 82,350 72,891 13.0% Inpatient ALOS (days) 2.97 3.11 -4.5% Inpatient

  36. Slide 36: Healthcare Services: Expansion Plan

    Healthcare Services: Expansion Plan Balance Total Census Location Nature Project Cost Remarks Beds Beds (in Crs) Expected commisioning : FY26 Commissioning planned for April 2025 with 200 beds Phase 1, along with structural readiness for additional Royal Mudhol Pune Hospital Asset Acquisition 425 35

  37. Slide 37: Executive Summary

    Executive Summary Primary Care Diagnostics Specialty Care  Core revenues of Primary Care grew by 14%  Network growth of ~16% YoY in Q1’FY25 via  Spectra: ~18% YoY revenue growth driven YoY in Q1’FY25 addition of 9 labs & 186 Collection Centers by operationalization of renovated centers  Wellness

  38. Slide 38: AHLL Financials Q1FY25

    AHLL Financials Q1FY25 (` mio) Corporate / Primary Care Diagnostics Specialty Care AHLL Intra Group Revenue 964 1,164 1,725 -192 3,661 AHLL Revenues grew by 15% YoY in Q1’ EBITDA 180 110 184 -165 309 FY25; primarily attributed to maturing Q1FY25 margin (%) 18.6% 9.4% 10.7% 8.4% network EBIT 110 73 1

  39. Slide 39: Diagnostics: Key Parameters

    Diagnostics : Key Parameters Gross Revenue (INR Mn)1 EBITDA (INR Mn)2 Operational footprint 1,239 12% (as of June 30, 2024) 3 14% 1,169 1,164 5 1 ~330+ 1,122 10% 9% ~330+ 4 7% Cities Cities presence 1,075 1,236 168 presence 16 149 1,165 1,163 1,118 75 112 110 1,059 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1

  40. Slide 40: India's Largest Omni-Channel Healthcare Platform

    India’s Largest Omni-Channel Healthcare Platform Apollo 247 Digital Platform Apollo Pharmacy Platform 6,074 Stores ~16.1% Omni Private ~35 Mn+ Registrations Added 46 label / generics Chandigarh: 4 mix Closed 2 - Q1’ FY 25 Himachal Pradesh: 5 Net Uttarakhand: 31 44 ~8,640 Doctors Punjab: 62 New Delhi

  41. Slide 41: Apollo HealthCo Financials Q1FY25

    Apollo HealthCo Financials Q1FY25 (` mio) Online Offline Healthco (Q1’ FY25 vs Q1’ FY24); Pharmacy Total Health ` Mio Pharmacy Distribution & Co Distribution o 15% growth in revenue in Q1’ FY25 vs Q1’ FY24 Apollo 247 Total Revenues 18,369 2,452 20,821 o EBITDA positive in Q1’FY25 (Rs. 225 Mn) vs los

  42. Slide 42: Apollo HealthCo: Transaction Summary

    Apollo HealthCo : Transaction Summary • Apollo Healthco Limited (“AHL”) to raise equity capital of INR 2,475 Cr (USD 300 Mn) from Advent International (“Advent”)1, one of the largest global private equity investors with an AUM of over USD 94 Bn Overview • Proposes integration of Keimed Private Limit

  43. Slide 43: Synergetic Benefit of the Keimed Merger

    Synergetic Benefit of the Keimed Merger Becoming India’s Leading Healthcare Provider 1 Leading Pharma End-to-end, Patient retention Distributor seamless, omnichannel User satisfaction + business model of pharmacy Cross selling Growing Omni distribution with a Apollo Channel Platform fast-growing dig

  44. Slide 44: Proposed Transaction Structure and Steps (1/2)

    Proposed Transaction Structure and Steps (1/2) Pre-Transaction Post Advent Tranche 1 Investment Post Advent Tranche 2 Investment (As of date) (T) (T+12 Months) AHEL ESOP AHEL Advent ESOP AHEL Advent ESOP 95% 5*% 83.1% 12.5%1 4.4% 79.0% 16.9% 4.1% 2% 11.2% AHL AHL Keimed AHL Keimed Tranche 1 Tranche

  45. Slide 45: Proposed Transaction Structure and Steps (2/2)

    Proposed Transaction Structure and Steps (2/2) Launch of Merger Process Post Merger (T+15 Months) (T+30 Months) Keimed AHEL Promoters Keimed 61.5% AHEL 79.0% Shareholders Other minority Advent ESOP FHPL partners 59.2%** 25.7%# Min Max 16.9% 4.1% 16.1% 11.2% Advent ESOP 11.2%* 12.1%+ 3.0% AHL Keimed

  46. Slide 46: Combined Financials Metrics Snapshot Q1FY25

    Combined Financials Metrix| Snapshot Q1FY25 (` mio) Combined Offline Pharma Online Pharma Combined Distribution Total Healthco Keimed Combined FY24 Distribution+247 Q1’FY25 Revenue 137,701 18,369 2,452 20,821 29,973 37,379 EBITDA,Pre 9,614 1,327 315 1,642 938 2,580 INDAS EBITDA % 7.0% 7.2% 12.8% 7.9

  47. Slide 47: Prioritizing ESG

    Prioritizing ESG © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 47

  48. Slide 48: Governance Features (1/4) – Skilled and Experienced Board

    Governance Features (1/4) – Skilled and Experience Board Fully Independent Board Independence Gender Diversity Our Board Committees Executive Directors Nomination & Risk Audit Remuneration Management Stakeholder 50% Independent 60% Female CSRS* Investment Relationship Share Transfer Innovation and Q

  49. Slide 49: Governance Features (2/4) – Skilled and Experienced Board

    Governance Features (2/4) – Skilled and Experience Board Dr. Prathap C. Smt. Preetha Smt. Smt. Sangita Shri. MBN Smt. Kavitha Smt. Shobana Dr. Murali Smt. Rama Shri. Som Mittal Reddy Reddy Suneeta Reddy Reddy Rao Dutt Kamineni Doraiswamy Bijapurkar Chair Vice-Chair Managing Director Managing Directo

  50. Slide 50: Governance Features (3/4) – Governance of Sustainability

    Governance Features (3/4) – Governance of Sustainability Our governance framework ensures that social responsibility and sustainability considerations are embedded in our decision-making process, operations and interactions with stakeholders Board-level Mechanism Accountable and Transparent Our Ente

  51. Slide 51: Governance Features (4/4) – Risk Management

    Governance Features (4/4) – Risk Management The Board constituted a Risk Management Committee, chaired by the Managing Director, to identify elements of risk in different areas of operations and to develop a policy for actions associated to mitigate the risks. The Audit Committee, wholly independent

  52. Slide 52: Sustainability (1/5) – Our Strategy and Targets

    Sustainability (1/5) – Our Strategy and Targets Targets & Select Metrics (see Aligning our Strategy with our Material Risks and Opportunities our FY24 ESG report for full list) • Net Promoter Score from patients of >84 for OP & IP • 100% re-accreditation for all hospitals undergoing JCI, Healing our

  53. Slide 53: Sustainability (2/5) – Performance Highlight FY24

    Sustainability (2/5) – Performance Highlight FY24 Access to Healthcare Patient Safety Water Waste • 7,151,874 patients served • In-patient and out-patient Net • c.536,000 KL of water recycled • c.4874 MT of waste recycled or • 6,000+ pharmacies Promoter Score is 84 • 1.6 million KL of water underwen

  54. Slide 54: Sustainability (3/5) – Healing Our Patients

    Sustainability (3/5) – Healing Our Patients Healing our patients through quality care, unparallelled service Pillar’s experiences, and ensuring accessibility and affordability of Purpose medicines and care services in strained geographies. 84 84 84 84 From a clinical perspective, we’ve trailblazed t

  55. Slide 55: Sustainability (4/5) – Empowering Our People

    Sustainability (4/5) – Empowering Our People Empowering our people through internal Pillar’s Positive Employee Satisfaction Survey development, policies, initiatives, external community Purpose building and CSR initiatives. On Roll Off Roll In FY23-24, we’re proud to announce our first-ever employee

  56. Slide 56: Sustainability (5/5) – Nurturing Our Planet

    Sustainability (5/5) –Nurturing Our Planet Driving sustainable outcomes through climate change Falling Scope 1&2 emissions*& Pillar’s governance and ensuring that we extend these practices 1000k Purpose across our value chain. FY22-23 FY23-24 -11% y-o-y fall in total 500k Scope 1 & 2 emissions The y

  57. Slide 57: Dr. Prathap C. Reddy, Founder and Chairman

    DR. PRATHAP C. REDDY Founder and Chairman of Managing our sustainability risks is not just about demonstrating goodwill to our Apollo Hospitals stakeholders; it’s about embedding sustainability into every aspect of our decision- making process. Our refined sustainability strategy, aligned with our m

  58. Slide 58: Annexure

    Annexure © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 58

  59. Slide 59: Basis of Consolidation

    Basis of Consolidation AHEL AHEL Standalone Hospitals (100% Ownership) Location Subsidiaries Location Description Ownership Chennai Main Chennai Material Subs ACI - Chennai Chennai Apollo Health Co limited India Digital Omni-Channel Healthcare services Platform 100.00% Tondiarpet - Chennai Chennai A

  60. Slide 60: IND AS 116: Impact on P&L and Balance Sheet – Q1FY25

    IND AS - 116 : Impact on P&L and Balance Sheet –Q1FY25 AHEL Standalone (post IND AS 116) AHEL Consolidated (post IND AS 116) Balance sheet Profit & Loss Balance sheet Profit & Loss Right of use Asset 12,893 Revenue Right of use Asset 20,057 Revenue as of Other expenses 241 as of Other expenses 607 3

  61. Slide 61: Thank you !!

    Thank you !! 61

Apollo Hospitals Enterprise — Investor Presentation (June 2024) on 6ix