Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Q1 FY21 Earnings Presentation
25 slides from Healthcare Global Enterprises's earnings presentation, Aug 20, 2020
Slide 1: Cover letter to stock exchanges: Investor Presentation
August 20, 2020 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, S
Slide 2: HealthCare Global Enterprises Limited Investor Presentation Q1-FY21
HealthCare Global Enterprises Limited Investor Presentation Q1-FY21 www.hcgel.com © 2020 Healthcare Global Enterprises Limited 1
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: Leadership in specialty healthcare
Leadership in specialty healthcare www.hcgel.com © 2020 Healthcare Global Enterprises Limited 3
Slide 5: Overview, Financial Highlights, Appendix
Overview Financial Highlights Appendix www.hcgel.com © 2020 Healthcare Global Enterprises Limited 4
Slide 6: Overview of HCG (1/2)
Overview of HCG (1/2) Snapshot of the Business Comprehensive cancer diagnosis and Specialty healthcare provider with a focus treatment services (through radiation therapy, medical oncology and surgery) on cancer and fertility Largest1 provider of cancer care in India 226 comprehensive cancer
Slide 7: Overview of HCG (2/2)
Overview of HCG (2/2) Entry into fertility business Today India’s largest provider through the acquisition of 50.1% of cancer care¹ in BACC Healthcare Pvt. Ltd. Awarded Oncology Leader 2013 of the Year by Frost & Sullivan Milann ranked #1 nationally 2011 Entry into the clinical laboratory business t
Slide 8: HCG's Cancer Care Network
HCG’s Cancer Care Network Network of Existing and Under HCG Network Development Cancer Care centers Center of Excellence (CoE)1 Comprehensive Cancer center (22)2 Freestanding Diagnostic center (3)2 2,0711 +28 +17 Day Care Chemotherapy center (1) BEDS LI NEAR PET - CT ACCELERATORS SCANNE RS Cancer ce
Slide 9: Overview, Financial Highlights, Appendix
Overview Financial Highlights Appendix www.hcgel.com © 2020 Healthcare Global Enterprises Limited 8
Slide 10: Financial Highlights: Q1-FY21
Financial Highlights: Q1-FY21 INR million except earnings per share • Q1’21 Revenue declined 28% y-o-y Growth Period Ended Jun 30 Q1-FY21 Q1-FY20 (y-o-y) • HCG(1) centers: -25.5% Income from Operations 1,935 2,689 -28.0% • Milann centers: -65.2% Other Income 27 13 • Q1’21 Operating EBITDA • Existing
Slide 11: Revenue Mix: Q1-FY21
Revenue Mix: Q1-FY21 Revenue: HCG Centers: INR 1,935 Mn INR 1,874 Mn Gujarat HCG (1) 24% Karnataka (31%) 1 centers 37% 97% (36%)1 (94%) 1 Fertility (2) centers 3% North India Maharashtra (6%) 1 2% 16% (2%) 1 (13%) 1 Tamil Nadu A.P. East India 2% 9% (4%) 1 10% (7%) 1 (7%) 1 (1) 22 comprehensive cance
Slide 12: HCG Centers: Q1-FY21 Revenues
HCG Centers: Q1-FY21 Revenues INR million Growth • Strong resilience in revenues Q1-FY21 Q1-FY20 (y-o-y) across centers located in Tier 2/3 Period Ended Jun 30 towns in Q1-FY21, Karnataka 697 886 -21.4% • Hubli +36.5% y-o-y Gujarat 460 788 -41.6% • Gulbarga: +15.2% y-o-y Maharashtra 308 333 -7.4% •
Slide 13: HCG Centers: Q1-FY21 Operating Metrics
HCG Centers: Q1-FY21 Operating Metrics No. of Centers Beds Avg. Occupancy Rate Q1-FY21: Q1-FY21 : Q1-FY21 : • ARPOB for existing centers at INR 32,033 25 2,071 32.4% against INR 33,162 in Q1-FY20 Q1-FY20: • ALOS at 2.15 days showed marginal Q1-FY20: Q1-FY20: 1,935 45.8% increase 24 • Operating EBITD
Slide 14: HCG Centers: Q1-FY21 Regional Highlights
HCG Centers: Q1-FY21 Regional Highlights ARPOB Revenue Operating Centers Beds AOR (INR/Day) (INR MN) EBITDA % Karnataka COE Revenue declined -26.4% y-o-y COE ARPOB of INR 45.8k and 24.3% 7 615 39.4% 33.1K 696 22.3% operating EBITDA margin Revenue from international patients impacted -16.5%(1)
Slide 15: Milann: Implementing Strategic Initiatives
Milann: Implementing Strategic Initiatives Existing centers(1) New centers(2) Chandigarh Delhi Ahmedabad Q1-FY21 Q1-FY20 Growth New Registrations 386 1,374 -71.9% Bangalore (5 centers) IVF Cycles 144 563 -74.4% Revenue (INR Mn) 61 175 -65.2% M S Ramaiah Indiranagar Shivananda Revenues impacted sub
Slide 16: Capital Expenditure and Net Debt
Capital Expenditure and Net Debt Capital Expenditure Net Debt INR Million INR Million Q1-FY21 FY20 30-Jun-20 31-Mar-20 HCG Centres Net Debt Existing Centres 17 169 Bank Debt(1) 5,937 5,682 (2) Expansions 20 366 Vendor Finance 904 1,118 New Centres 43 717 Other Debt 70 54 (3) (456) (334) 80 1,252 Les
Slide 17: Project Updates
Project Updates Additional 2 new HCG centers in FY2022 / 23 No new Milann center in FY2020 Bed Project Cost Start Location Capacity (INR mn) Date Location Start Date Jaipur, Rajasthan 50 410 Q2-FY19 Delhi Q1-FY17 Bhavnagar, Gujarat NA 150 Q2-FY19 Chandigarh Q3-FY17 Nashik Phase II, 92 623 Q2-FY19 Ma
Slide 18: Overview, Financial Highlights, Appendix
Overview Financial Highlights Appendix www.hcgel.com © 2020 Healthcare Global Enterprises Limited 17
Slide 19: Investment Thesis
Investment Thesis Strong Industry trends Largest provider of High quality care provided Strong management and growing oncology cancer care in India with at a competitive price team with successful cases backdrop a proven track record track-record www.hcgel.com © 2020 Healthcare Global Enterprises Li
Slide 20: Industry Trends and Backdrop
Industry Trends and Backdrop Cancer Incidences in India to Increase Incidence of Cancer Across Countries¹ 3.4 Cancer prevalence in India estimated to be 3.9mn in 2015 Estimated 1.6-2.2 Estimated 1.1mn new cancer cases reported in 2015 1.7 incidence of 1.1 0.9 cancer in 2015 (mns) Real incidenc
Slide 21: Industry Trends and Backdrop
Industry Trends and Backdrop Demand Supply Gap and Treatment Landscape Existing Demand Supply Gap in Diagnostics… …and Treatment Lack of adequate infrastructure and absence of mass A key requirement for successful radiation therapy is screening programs are key barriers to timely diagnosis avail
Slide 22: Largest Provider of Cancer Care in India
Largest Provider of Cancer Care in India A Proven Track Record¹ HCG’s market leading position, successful track record and strong reputation in India provides a significant advantage over its competitors Largest Cancer Care Provider… …With a Strong Track Record Largest provider of cancer care in I
Slide 23: High Quality Care
High Quality Care Provided at Competitive Price Ability to provide high quality care driven by a multidisciplinary and technology focused approach Approach to Providing High Quality Care… …Results in Successful Clinical Multidisciplinary approach to cancer care - specialist physicians from Outcome
Slide 24: Coverage by Harvard
Coverage by Harvard Unique and Successful Comparable outcomes Business Model at fraction of cost Survival Rate Cost Govindarajan et. al. .Harvard Business Review, November 2012, “Delivering World Class Health Care Affordably, Innovative hospitals in India are pointing the way”G www.hcgel.com © 2020
Slide 25: Thank You
THANK YOU For updates and specific queries, please visit www.hcgel.com or feel free to contact investors@hcgoncology.com © 2019 HealthCare Global Enterprises Limited., All Rights Reserved. HCG Logo is trademark of HealthCare Global Enterprises Limited In addition to Company data, data from market re
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