Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (September 2024)
64 slides from Apollo Hospitals Enterprise's investor presentation, September 2024
Slide 1: Apollo Hospitals Enterprise Limited Investor Presentation
Apollo Hospitals Enterprise Limited Investor Presentation September 2024
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
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
Slide 4: India's Largest Integrated Healthcare System
India’s Largest Integrated Healthcare System © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 4
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
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 264 primary clinics, 183 dental Fastest insurer to reach 10,138 beds towns clinics, 72 sugar clinics,
Slide 7: Largest Pan India Hospital Chain
Largest Pan India Hospital Chain Capacity Operational/ Hospitals Beds1 Census Beds Overall Total 73 10,138 9,423 Delhi: 5 Amritsar: 1 Noida: 1 Owned Hospitals 45 8,709 7,994 Bilaspur: 1 Kanpur: 1 Lucknow: 1 Indirapuram: 1 Managed Hospitals 6 790 790 Jaipur: 1 Day Surgery & 22 639 639 Cradle (AHLL) A
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
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 Unmatched Size Key Differentiators • India’s largest Organized Pharmacy Platform with • 36 Mn.+ Registered Users – 771,000 Daily Active Users • Built digital business scale in 1/3rd th
Slide 10: Clinical Pioneers
Clinical Pioneers © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 10
Slide 11: Clinical pioneers bringing in tectonic shifts in healthcare
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
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
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
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
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
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
Slide 17: Attractive Industry Opportunity
Attractive Industry Opportunity © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 17
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
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
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
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 (
Slide 22: Strong Financial & Operational Track Record
Strong Financial & Operational Track Record © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 22
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 55,405 51,426 48,206 50,022 48,409 45,15
Slide 24: Aided by Strong Operating Metrics
…… Aided by Strong Operating Metrics In-patient Admissions (‘000) Bed Occupancy Rate(1) % Operating Beds 540 569 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 7,765 7,994 478 460 428 451 71% 72% 71% 68% 68% 67% 70% 399 63% 64% 66% 63% 64% 65% 65% 354 374 352 55% 313 3
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
Slide 26: Consolidated Financials Q2FY25
Consolidated Financials Q2FY25 (` mio) Digital Health ` Mio Healthcare Diagnostics & & Pharmacy Consol Overall Consolidated Revenue grew by 15% to ` 55,893 mio. Services Retail Health Distribution Total Revenues 29,032 4,039 22,822 55,893 EBITDA grew by 30% to ` 8,155 mio. EBITDA (Pre 24|7 Cost) 7,2
Slide 27: Consolidated Financials H1FY25
Consolidated Financials H1FY25 (` mio) Overall Consolidated Revenue grew by 15% to ` 106,749 mio. Digital Health Healthcare Diagnostics & ` Mio & Pharmacy Consol Services Retail Health EBITDA grew by 31% to ` 14,906 mio. Distribution Total Revenues 55,405 7,700 43,643 106,749 PAT grew by 71% to ` 6,
Slide 28: Healthcare Services Financials
Healthcare Services Financials (` mio) ` Mio Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY No of Hospitals 45 44 45 44 Healthcare Services Revenue grew by 14% in Q2FY25 Operating beds 7,994 7,765 3% 7,994 7,765 3% (Inpatient Volume grew by 8% ; Price & case mix of 6%) Occupancy 73% 68% 70% 65% IP Discharges 1
Slide 29: Inpatients Revenue Mix H1FY25
Inpatients Revenue Mix H1FY25 IPS Paed Transplts Uro PSU & Govt 3% Cardio 3% 6% Nephro 3% 19% 10% 4% Self Pay Obs&Gynac 4% Gen Surg 4% 40% 8% Inpatient Inpatient Others Specialty Mix Payor Mix 17% Onco* 9% Internal Med 10% 44% 6% Gastro 10% Neuro Insurance Ortho * Oncology includes Radiotherapy and
Slide 30: Healthcare Services: Operational Snapshot
Healthcare Services : Operational Snapshot Metros: Chennai, Hyderabad, Bangalore, Mumbai, Kolkata and Delhi H1FY25 Metros Non Metros Non Metros (includes Tier1 & Tier2 cities) Ahmedabad, Bhubaneshwar, Lucknow, Operating Indore, Guwahati, Madurai, Trichy, 4,558 3,436 Nellore,Vizag, Kakinada, Mysore,
Slide 31: Tamil Nadu Region
Tamil Nadu Region Metro:- Chennai ; Non Metro:- Madurai, Karur, Karaikudi, Trichy and Nellore Nellore Nellore Tamil Nadu Region Chennai Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Operating Beds 2,048 2,049 0.0% 2,048 2,049 0.0% Bed Occupancy Rate (%) 64% 62% 64% 61% Inpatient volume 39,280 37,868 3.7% 76,7
Slide 32: AP, Telangana Region
AP, Telangana Region Metro:- Hyderabad; Non Metro:- Karimnagar, Vizag and Kakinada Vishakhapatnam AP, Telangana Region Q2FY25 Q2FY24 Q2FY24 YoY H1FY25 H1FY24 YoY Operating Beds 1,240 1,270 -2.4% 1,240 1,270 -2.4% Bed Occupancy Rate (%) 74% 60% 69% 57% Inpatient volume 24,078 20,475 17.6% 43,807 39,0
Slide 33: Karnataka Region
Karnataka Region Metro:- Bangalore; Non Metro:- Mysore Karnataka Region Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Operating Beds 772 718 7.5% 772 718 7.5% Bed Occupancy Rate (%) 80% 73% 77% 69% Inpatient volume 18,935 16,874 12.2% 36,230 31,967 13.3% (1) Outpatient volume 72,052 55,296 30.3% 132,263 102,9
Slide 34: Eastern Region
Eastern Region Metro:- Kolkata; Non Metro:- Guwahati, Bhubaneshwar, Bilaspur and Rourkela Eastern Region Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Operating Beds 1,847 1,771 4.3% 1,847 1,771 4.3% Guwahati Bed Occupancy Rate (%) 80% 77% 78% 73% Inpatient volume 35,442 32,715 8.3% 68,376 62,292 9.8% Outpati
Slide 35: Western Region
Western Region Metro:- Navi Mumbai; Non Metro:- Nashik and Ahmedabad Western Region Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Operating Beds 870 861 1.0% 870 861 1.0% Ahmedabad Bed Occupancy Rate (%) 67% 61% 61% 54% Inpatient volume 14,543 14,025 3.7% 27,086 24,179 12.0% Outpatient volume (1) 48,796 57,44
Slide 36: Northern Region
Northern Region Metro:- Delhi; Non Metro:- Lucknow and Indore Northern Region Delhi Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Operating Beds 1,217 1,096 11.0% 1,217 1,096 11.0% Lucknow Bed Occupancy Rate (%) 74% 77% 73% 76% Inpatient volume 27,690 25,721 7.7% 54,532 49,645 9.8% (1) Outpatient volume 92,90
Slide 37: Healthcare Services: Expansion Plan
Healthcare Services: Expansion Plan Balance Total Census Project Cost Location Nature Project Cost Beds Beds (in Crs) (in Crs) Expected commissioning : FY26 Royal Mudhol Pune Hospital Asset Acquisition 400 325 ₹ 630 ₹ 270 Sonarpur, Kolkata Hospital Asset Acquisition 270 220 ₹ 310 ₹ 160 Gachibowli, H
Slide 38: Executive Summary: Primary Care, Diagnostics, Specialty Care
Executive Summary Primary Care Diagnostics Specialty Care Core revenues of Primary Care grew by 14% Wellness segment volume grew by ~37% Spectra: ~19% YoY revenue growth in YoY in Q2’FY25 YoY in Q2’FY25 & contributed ~19% to the H1’FY25 growth driven by Diagnostics revenue operationalization o
Slide 39: AHLL Financials Q2FY25
AHLL Financials Q2FY25 (` mio) Corporate / Intra Primary Care Diagnostics Specialty Care AHLL Group AHLL Revenues grew by 14% YoY in Q2’ Revenue 1,093 1,345 1,808 -208 4,039 EBITDA 203 181 209 -178 414 FY25; primarily attributed to maturing Q2FY25 margin (%) 18.5% 13.4% 11.6% 10.3% network EBIT 130
Slide 40: AHLL Financials H1FY25
AHLL Financials H1FY25 (` mio) Corporate / Intra Primary Care Diagnostics Specialty Care AHLL Group AHLL Revenues grew by 14% YoY in H1’ Revenue 2,058 2,509 3,533 -400 7,700 FY25; primarily attributed to maturing EBITDA 382 291 393 -343 723 network H1FY25 margin (%) 18.6% 11.6% 11.1% - 9.4% EBIT 239
Slide 41: Diagnostics: Key Parameters
Diagnostics : Key Parameters Gross Revenue (INR Mn) EBITDA (INR Mn)1 Operational footprint (as of Sep 30, 2024) 12% 14% 13% ~330+ 10% 9% ~330+ Cities Cities presence 1,345 168 181 presence 1,239 1,169 1,164 149 1,122 112 110 1 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q
Slide 42: India's Largest Omni-Channel Healthcare Platform
India’s Largest Omni-Channel Healthcare Platform Apollo 247 Digital Platform Apollo Pharmacy Platform 6,228 Stores ~16.5% Omni Private ~36 Mn+ Registrations Added - H1 202 label / generics Chandigarh: 4 mix Himachal Pradesh: 6 Closed – H1 4 - H1’ FY 25 Uttarakhand: 35 ~9,727 Doctors Punjab: 64 Net –
Slide 43: Apollo HealthCo Financials Q2FY25
Apollo HealthCo Financials Q2FY25 (` mio) Online Offline Pharmacy Total ` Mio Pharmacy Healthco (Q2’ FY25 vs Q2’ FY24); Distribution & HealthCo Distribution Apollo 247 o 17% growth in revenue in Q2’ FY25 vs Q2’ FY24 Total Revenues 20,144 2,678 22,822 EBITDA (Pre 24|7 Cost)* 1,527 346 1,874 o PAT pos
Slide 44: Apollo HealthCo Financials H1FY25
Apollo HealthCo Financials H1FY25 (` mio) Online Offline Pharmacy Total ` Mio Pharmacy Distribution & HealthCo Distribution Healthco (H1’FY25 vs H1’FY24); Apollo 247 Total Revenues 38,513 5,130 43,643 o 16% growth in revenue in H1’FY25 vs H1’FY24 EBITDA (Pre 24|7 Cost)* 2,915 680 3,595 margin (%) 7.
Slide 45: Apollo HealthCo: Advent Investment – Tranche 1 completed
Apollo HealthCo : Advent Investment - Tranche 1 of INR 1732 crs completed • Apollo Healthco Limited (“AHL”) to raise equity capital of INR 2,475 Crs (USD 300 Mn) from Advent International (“Advent”)1, one of the largest global private equity investors with an AUM of over USD 94 Bn. Tranche 1 of INR
Slide 46: 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
Slide 47: Proposed Transaction Structure and Steps (1/2)
Proposed Transaction Structure and Steps (1/2) Post Advent Tranche 1 Investment Post Advent Tranche 2 Investment Pre-Transaction (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 2 • Advent in
Slide 48: 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
Slide 49: Proforma Combined Financials | Snapshot H1FY25
Proforma Combined Financials| Snapshot H1FY25 (` mio) FY24 Offline Pharma Online Pharma Combined Combined Distribution Total Healthco Keimed Combined Distribution+247 H1’FY25 Q2’FY25 Revenue 137,701 38,513 5,130 43,643 63,120 78,964 41,585 EBITDA,Pre 9,614 2,804 656 3,461 1,966 5,427 2,847 INDAS EBI
Slide 50: Prioritizing ESG
Prioritizing ESG © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 50
Slide 51: Governance Features (1/4) – Skilled and Experience 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
Slide 52: Governance Features (2/4) – Skilled and Experience 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
Slide 53: 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
Slide 54: 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
Slide 55: 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
Slide 56: 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
Slide 57: 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
Slide 58: 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
Slide 59: 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
Slide 60: 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
Slide 61: Annexure
Annexure © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 61
Slide 62: 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
Slide 63: IND AS 116: Impact on P&L and Balance Sheet – H1FY25
IND AS - 116 : Impact on P&L and Balance Sheet –H1FY25 AHEL Standalone (post IND AS 116) AHEL Consolidated (post IND AS 116) Balance sheet Profit & Loss Balance sheet Profit & Loss Right of use Asset 12,969 Revenue Right of use Asset 23,978 Revenue as of Other expenses 513 as of Other expenses 1,218
Slide 64: Thank you !!
Thank you !! 64
Apollo Hospitals Enterprise — Investor Presentation (September 2024) on 6ix