Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Axis Capital India Conference 2024
42 slides from Max Healthcare Institute's conference presentation, Feb 14, 2024
Slide 1: Exchange intimation letter for investor conference presentation
February 14, 2024 Listing Department, Listing Department, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai – 400 051 Mumbai – 400 001 Symbol: MAXHEALTH Scrip Code: 543220 Sub.: Pr
Slide 2: Investor Presentation
Investor Presentation February 13, 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “presentation”) contains selected information about the activities of Max Healthcare Institute Limited’s (“Max Healthcare”/“MHIL”/“MHC”/”Company”) as at the date of the presentation. None of MHIL, its directors, promoter, or affiliates, n
Slide 4: Content
Content Company Overview 04 Key Growth Drivers 14 Financial Highlights 24 Appendix 31 3
Slide 5: Company Overview
By MAX Healthcare Company Overview
Slide 6: India's second largest hospital chain by revenue, EBITDA and market cap
Max Healthcare: India’s second largest* hospital chain in terms of revenue, EBITDA and market capitalisation Current capacity ~3,550 beds 17 ~82% ~75% NCR Facilities Beds in metros 9M FY24 Occupancy 402 Shalimar Bagh 516 402 387 BLK Patparganj Vaishali 13% 41% ~35% Eqova Revenue CAGR^ EBITDA CAGR^ 9
Slide 7: Vision: To be the most well-regarded healthcare provider in India
Vision: To be the most well-regarded healthcare provider in India To be the most well regarded healthcare provider in India committed to the highest standards of clinical excellence and patient care supported by latest technology and cutting edge research Quaternary care facilities World class infra
Slide 8: Journey so far
Journey so far Executed O&M Agreement Dr. B L Kapur Memorial Dr. Balabhai Nanavati • Radiant-Max Healthcare merger with Muthoot Hospitals Hospital, Rajendra Hospital, Mumbai(1) and listing on BSE and NSE Pvt. Ltd. in Dwarka, Delhi Place(1) • Discontinuation of Max Multi for 300+ beds (our first Spec
Slide 9: Leading clinically comprehensive hospital chain with research and academics foundation
Leading clinically comprehensive hospital chain with excellent research and academics foundation High end Complex procedures performed quaternary care facilities Robotic Cardiac Neuro Orthopedic Oncology Transplants(1) surgeries procedures(2) surgeries(3) surgeries(4) surgeries(5) Est. Annual Count*
Slide 10: Dominant presence in the most attractive markets (1/2)
Dominant presence in the most attractive markets (1/2) Low bed density, higher per capita income, higher ARPOB and rising insurance penetration make Delhi and Mumbai attractive avenues for growth High demand-supply gap in Delhi NCR & Mumbai… …coupled with rising insurance penetration Total beds per
Slide 11: Dominant presence in the most attractive markets (2/2)
Dominant presence in the most attractive markets (2/2) Being metro-centric also positions MHC well to capitalise on medical tourism India’s foreign medical tourism industry has Break-up of medical tourists* by 18 company & partner-owned Patient Assistance been growing major country of origin Centres
Slide 12: Strategy going forward
Strategy going forward Build on Optimise Existing Clinical Expertise Infrastructure Attract best-in-class talent Payor mix, Capacity to focus on industry Utilisation, ALOS and leading patient outcomes Procedure Mix Focus on Capital Expand Bed Light Adjacencies Capacity Max Lab and Brownfields and Ma
Slide 13: Best in class performance parameters
Best in class performance parameters ARPOB(1) Occupancy (INR/OBD) (‘000) (%) 75 67 75% 76% 75% 59 57 54 60 63% 64% 65% 63% 67% 66% 52 48 45 Operating parameters Max Healthcare Apollo Hospitals Fortis Healthcare Max Healthcare Apollo Hospitals Fortis Healthcare Pre-tax ROCE(2) Operating EBITDA per be
Slide 14: Distinguished Board and a dynamic management team
Distinguished Board and a dynamic management team Distinguished Board of Directors Mr. Abhay Soi Ms. Amrita Gangotra Mr. Anil Bhatnagar Mr. Kummamuri Chairman and Managing Technology Leader & Former Senior Lawyer & Arbitrator Narasimha Murthy Director member of Exec. Mgmt at Chartered Accountant Bha
Slide 15: Key Growth Drivers
By MAX Healthcare Key Growth Drivers
Slide 16: Strong financial profile to support future growth
Multiple avenues for future growth • Focus on tower specialities & case mix 1 Optimising Existing Strong cash generation from 2 Infrastructure • Increase utilization & improve process efficiencies operations • Optimize payor mix INR 924 Cr in 9M FY24 • ~2,600 beds addition via brownfield expansion –
Slide 17: Growth opportunity in existing facilities
2 Growth opportunity in existing facilities Optimising payor mix Bed share • Push for reduction in institutional business in order to cater 31.3% 29.2% 28.8%* to demand from preferred channels, driven by - 36.5% 34.2% – Steady pace of organic growth in Self Pay, TPA and 2.8% 5.0% 5.6% 2.0% corporate
Slide 18: Existing land bank to enable addition of 4,000+ beds
3 Existing valuable land bank to enable addition of 4,000+ beds, with ~2,600 beds coming over next 4 years Indicative timelines for completion of expansion projects Dwarka, South-west Delhi 150 7,464 Gurugram## 200 Saket Complex (Smart) 500 Mohali 500 Nanavati Hospital* Saket Complex (Vikrant) 250 P
Slide 19: Status of ongoing expansion projects
3 Status of ongoing expansion projects Dwarka – 300 beds Mohali – 190 beds Nanavati – 329 beds in Phase I • Application of OC has been submitted in October. • All statutory approvals to start the construction have • Basement and ground level structures have been • Lift installation and other finishi
Slide 20: Snapshot of recent inorganic transactions
3 Snapshot of recent inorganic transactions Sahara Hospital, Lucknow Alexis Hospital, Nagpur Type of expansion Acquisition Acquisition ~550 beds (250 beds operational), 8.9L sft. BUA (G+17 floors, 200 beds, 2.25L sft. BUA (G+6 floors) Bed Capacity OC for G+8) Lucknow: Nagpur: Largest city of UP; hig
Slide 21: Strong track record of successful acquisitions
3 Strong track record of successful acquisitions • Management team has done multiple successful acquisitions including BLK, Nanavati and Max Healthcare • Adequate headroom driven by strong free cash flows and low leverage to pursue M&A even after spend on brownfield and greenfield expansions Case st
Slide 22: Develop asset light adjacencies: Max Lab
4 Develop asset light adjacencies: Max Lab – Non-captive pathology SBU Operational footprint Organised diagnostics players to grow faster than overall Diagnostic industry (as of Dec. 31, 2023) India Diagnostic market to see steady growth Indian Diagnostic Industry mix by type of providers (INR Bn) 3
Slide 23: Develop asset light adjacencies: Max@Home
4 Develop asset light adjacencies: Max@Home – Amongst one of the largest homecare providers in the country Indian home healthcare is under-penetrated with only ~3.6% of total health spending on home Growth Drivers healthcare vis-à-vis ~8.3% in the US Home healthcare solutions ~40% Indian home health
Slide 24: Max MyHealth digital platform
5 Max MyHealth – Proprietary digital platform enabling best-in- class omnichannel healthcare experience ‘Max MyHealth’ offering new age experience for patients and doctors 70.9 Monthly Active Users ('000s) Over 5X ~4.5 lac growth Patient registrations till date 10.9 70,000+ Monthly Active • Single a
Slide 25: Financial Highlights
By MAX Healthcare Financial Highlights
Slide 26: Network P&L Statement: Q3 FY24
Network P&L Statement: Q3 FY24 Figs in INR Cr Q3 FY23 Q2 FY24 Q3 FY24 Amount % NR Amount % NR Amount % NR Gross revenue 1,559 1,827 1,779 Net revenue 1,478 100.0% 1,732 100.0% 1,689 100.0% Direct costs1 573 38.8% 667 38.5% 650 38.5% Contribution 905 61.2% 1,065 61.5% 1,038 61.5% 2 Indirect overheads
Slide 27: Network P&L Statement: 9M FY24
Network P&L Statement: 9M FY24 Figs in INR Cr FY21 FY22 FY23 9M FY24 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue1 3,881 5,509 6,236 5,325 Net revenue 3,629 100.0% 5,218 100.0% 5,904 100.0% 5,049 100.0% Direct costs 1,508 41.6% 2,103 40.3% 2,304 39.0% 1,968 39.0% Contribution 2,121
Slide 28: Memorandum Consolidation of Network P&L: 9M FY24
Memorandum Consolidation of Network P&L: 9M FY24 Figs in INR Cr MHIL & its Partner Healthcare Facilities ("PHF") Financials MHC Network subsidiaries & Eliminations Silos (IGAAP Unaudited)* (Consolidated) & (Certified by an Ind AS Balaji GM Modi Devki Devi IND AS Adjustment (2) ICA) Unaudited Society
Slide 29: Network Balance Sheet
Network Balance Sheet1 (Includes Managed and Partner Healthcare Facilities) Figs in INR Cr Sep 2022 Particulars Mar 2023 Sep 2023 7,462 Shareholders' Equity 8,070 8,623 815 Gross Debt 682 606 446 Deferred / Contingent Consideration Payable2 440 463 144 Put Option Liability3 150 84 137 Lease Liabilit
Slide 30: Notes to Network Consolidated Financials
Notes to Network Consolidated Financials 1. Max Healthcare Institute Limited (“MHIL”), its subsidiaries and deemed separate entities (i.e. silos for managed healthcare facilities) constitute MHIL Group under IND AS 110. MHIL Group also has long term contracts with certain societies, who own and oper
Slide 31: Thank you
By MAX Healthcare Thank you
Slide 32: Appendix
Appendix 1. ESG & CSR Updates 2. Network Structure, IT & HR 31
Slide 33: Appendix 1: ESG Highlights, CSR Initiatives
Appendix 1 ESG Highlights CSR Initiatives 32
Slide 34: ESG Highlights
ESG Highlights Environment 39% water recycled out of total water Water consumption decreased to 0.98 33.3% share of renewable energy in total energy mix consumption in FY 2023, up from 35.9% in FY kilolitres per bed in FY 2023 from 1.08 2022 kilolitres per bed in FY 2022 ISO 14001 certification rece
Slide 35: CSR Initiatives
CSR Initiatives Initiatives undertaken on Education CMD and DG Delhi Prisons inaugurating Press coverage in Times of India & Media coverage on AajTak news the Max Skill Training for Sustainable Dainik Jagran channel Livelihoods at Tihar Jail Focus areas for CSR: Education and Water Sustainability Ed
Slide 36: Appendix 2: Network structure, IT, HR
Appendix 2 Network structure IT Infrastructure HR Initiatives 35
Slide 37: Network Holding Structure
Network Holding Structure (as of February 12, 2024) Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Max Healthcare Medical Service Agreement Max Panchsheel Immigration centre (Lajpat Nagar) Institute Limited Max Saket (West) (MHIL) Devki Devi Society SBUs (MIME, Max@Ho
Slide 38: Our Digital Backbone
Our Digital Backbone Modernization of IT infra Digitization & AI ▪ Modernisation of Core HIS, EMR and ▪ Multiple AI projects running in radiology other apps (Qure AI, Predible’s LungIQ, Zebra’s, etc.) ▪ Implementation of SDWAN for better + few pilot projects for disease user experience and cost opti
Slide 39: Our people help us – to serve, to excel
Our people help us – to serve, to excel COMPASSION EXCELLENCE EFFICIENCY CONSISTENCY ▪ Travel tickets ‘to and fro’ home ▪ ~1 Mn hours of upskilling ▪ Differentiated reward strategy ▪ Received Great Place To Work to our nurses once a year programme through capability for medical and non-medical certi
Slide 40: List of Network Healthcare Facilities
List of Network Healthcare Facilities Name Location Description Max Super Speciality Hospital, (West Block) Saket Delhi Hospital Max Super Speciality Hospital, (East Block) Saket Delhi Hospital Max Smart Super Speciality Hospital, Saket Delhi Hospital BLK-Max Super Speciality Hospital, Rajendra Plac
Slide 41: Definitions
Definitions Term Description ALOS Average Length of Stay: discharged patients stay in the hospital, basis admission and discharge time Average Revenue per Occupied Bed; Gross revenue divided by the occupied bed days; excludes revenue from Covid-19 ARPOB vaccination & related antibody tests and Max L
Slide 42: About Us
About Us Max Healthcare Institute Limited (MHIL) is India’s leading provider of healthcare services. For further information, please visit It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education. www.maxhealthcare.in MHIL has major c
Max Healthcare Institute — Axis Capital India Conference 2024 on 6ix