Max India Ltd · NSE:MAXIND
Max India — Investor Presentation (February 2006)
40 slides from Max India's investor presentation, February 2006
Slide 1: Max India Limited Investor Presentation
Max India Limited Investor Presentation 1
Slide 2: Max – the journey from 1985 to 1998
Max – the journey from 1985 to 1998 Pharmaceuticals Gist Brocades, The Netherlands 1983 Electronic Motorola, USA 1989 Component Distribution Avnet Inc, USA 1998 Hutchison Telecommunication Ltd, 1992 Mobile Telephony Hutchison Hong Kong Communication COMSAT Comsat Investment Inc 1993 Services Lockhee
Slide 3: 1999 – Birth of a new Max
1999 – Birth of a new Max www.maxnewyorklife.com Life Insurance www.maxhealthcare.com Healthcare www.neeman-medical.com Clinical Research z From B-B to B-C z From Intermediates to Consumer Service & BRANDS z New business navigators : Knowledge, Service & Focus z Re-inventing : Strategic Choice 3
Slide 4: Max India – Life: Our Focus
Max India – Life ….. Our Focus Protecting Life through Life Insurance Caring for Life through Healthcare Improving Life through Clinical Research 4
Slide 5: Max India – 2005
Max India – 2005 Max India Limited (www.maxindia.com) is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Life Insurance, Healthcare and Clinical Research. Max also maintains interests in Specialty Plastic Products for th
Slide 6: Investment in Core Businesses
Investment in Core Businesses US $ Mn Planned Current Equity Peak Equity Business outlay for Investment Investment the business by Max India by Max India Life Insurance * 222 86 164 Healthcare $ 133 32 37 * Life Insurance – Max India’s stake is 74% $ Healthcare – Max India’s stake is 70% 6
Slide 7: Healthcare
Caring for you... for life Healthcare
Slide 8: Max Healthcare Model
Max Healthcare Model PRIMARY Dr Max™ PRIMARY Dr Max Consult TM Dr Max™ Dr Max™ Dr Max™ Max GP/ FP Consult Medcentre™ Implant & Hospital Specialist doctor consultation Dr Max™ Dr Max™ Diagnostics: X-Ray, ECG Dr Max™ Dr Max™ Pathology Collection Pathology Collection Dr Max™ Dr Max™ Dr Max™ D
Slide 9: Max Healthcare – Focused on the National Capital Region
Max Healthcare – Currently Geographically Focused on the National Capital Region (Delhi and surrounding areas) Existing Max Hospitals Dr Max Clinics & Implants Proposed Max Hospitals Tertiary care Hospital 9
Slide 10: Indian Healthcare
Indian Healthcare • Over 1 billion people,spread into many different economic classes. • More than 200 million upper & middle class, growing at over 4% per annum, with combined annual income of over Rs. 820,000 Crores (> $182 billion). Government 25% Self-pay 59% Municipal Bodies Health expenditure
Slide 11: Advantage India
Advantage India Core Competencies “International Class Treatment at Domestic Costs” Quality Huge resource of highly trained doctors, nurses & paramedics Comfort Level Doctors of Indian origin recognized as amongst best in USA & UK English Language Value Proposition Lower drug costs Quality medical s
Slide 12: Current Facilities
Caring for you... for life Current Facilities
Slide 13: Current Facilities
Current Facilities Secondary Care Max Hospitals operational at: PANCHSHEEL PARK PITAMPURA NOIDA (February 2001) (February 2002) (August 2002) •25 inpatient beds •100 inpatient beds •40 inpatient beds •1+1 OT •2+1 OT •2+1 OT •Full range diagnostics •Full range diagnostics •Full range diagnostics •PHP
Slide 14: Current Facilities – Heart & Vascular Institute, Saket
Current Facilities HEART & VASCULAR INSTITUTE – SAKET • 250 patient beds • 3 Operation Theatres, 2 Cardiac Catheterization Labs • Total covered area of approx.150000 sq. ft. • Post Surgery Critical Care Unit • High Dependency Unit • Apex Coronary Care • Advanced Coronary Care Unit • Exclusive well e
Slide 15: Current Facilities – Max Hospital Patparganj
Current Facilities MAX HOSPITAL – PATPARGANJ 125 Bed Hospital; only one of its kind in East Delhi comprehensive with full range of services include • Cardiac Catheterization Lab • Non-invasive Cardiology • Mother & Child • PHP • Dialysis • Blood Bank • Traumatology • All other Specialties Operationa
Slide 16: Current Facilities – Ophthalmology & Dental Center
Current Facilities OPTHALMOLOGY & DENTAL CENTER – PANCHSHEEL • Lasik, OPD and Diagnostics • Dental – 3 chambers, OPG and Lab • Support Services and Offices (N & S) • Training / Conference room Operational Since November 2005 16
Slide 17: Current Status
Current Status ¾ Occupancy* improving at each of the healthcare facility • Max Tertiary Hospital, Saket – 51% (Facility launched in Jan’05) • Max Secondary Hospital, Patparganj – 68% (Facility launched in May’05) • Max Secondary Hospital, Pitampura – 53% (Post expansion) • Max Secondary Hospital, No
Slide 18: Max Healthcare – Project Cost & Funding
Max Healthcare – Project Cost & Funding (Phase 1) z Max India – Promoters Equity - Current – $32 Mn - Future – $5 Mn z Warburg Pincus – $31 Mn US$ 72 million z Other Foreign Investors – $4 Mn Project Cost US$ 133 million Debt z HDFC – $23 Mn z Other Indian Banks and Financial Institutions – $38 Mn U
Slide 19: Upcoming Facilities
Caring for you... for life Upcoming Facilities
Slide 20: Upcoming Facilities – Max Hospital Saket
Upcoming Facilities MAX HOSPITAL – SAKET • 225 beds (including 70 critical care beds) • To include: • 7 OTs, 20 Consult Chambers • Tower Specialties – Ortho, Neuro, Woman & Child and MIS • Brain Lab (first in Asia) & intra operative MRI • DSA Lab (for Neuro Sciences) • Emergency Services • Estimated
Slide 21: Upcoming Facilities – Max Hospital Gurgaon
Upcoming Facilities MAX HOSPITAL – GURGAON • 100 bed Hospital with 4 OTs • Tower Specialties to include: • Obstetrics, Paediatrics & Gynaecology (incl. Infertility) • Nephrology & Urology • Plastic & Reconstructive Surgeries • General & Minimally Invasive surgeries • Launch by December 2006 • Tertia
Slide 22: Max Healthcare – Thinking Ahead
Max Healthcare – Thinking Ahead 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Phase 1 – National Capital Region Roll-out z Strategic choices Refinement of Current based on: PSH NCR Portfolio and − Learnings from NCR roll-out Selected Expansion − Leveraging the PPA collective intellectual ND
Slide 23: Max Healthcare – Projected Financials
Max Healthcare – Projected Financials US$ million FY 05 FY 06 FY 07 FY 08 FY 09 FY 11 EBITDA (6.0) (9.2) 5.7 18.3 25.1 28.2 Cash Profit (9.4) (14.5) (1.3) 10.7 17.3 20.6 PAT (12.4) (17.5) (6.9) 5.7 12.5 16.2 23
Slide 24: Medical/Clinical Collaboration
Medical/Clinical Collaboration • Medical • Nursing • Paramedical Advanced Heart Physicians and University of Nebraska Medical Surgeons Network, New York Center (UNMC) Team Comprising of • Scope • Dr V Subramaniun – Chairman, Cardio Thoracic Surgery, - Training Lennox Hill Hospital, New York - Resear
Slide 25: Life Insurance
PNY Sux Your Partner for Life Life Insurance
Slide 26: Max New York Life Insurance
MAX NEW YORK LIFE INSURANCE ¾ Joint Venture between Max India & New York Life International ¾ NYL, ranked 68th in Fortune 500 companies provides insurance domain expertise ¾ NYL is one of the oldest mutual life insurance company in the US with over $200 billion in assets under management ¾ Max India
Slide 27: MNYL's Strategy to build a Strong Life Insurance Business
MNYL’S Strategy to build a Strong Life Insurance Business 1) Full Suite of products with a focus on protection ¾ Long Tenor products , Young customer base ¾ Unit Link in place: contributes 45% of total sales for the Company for the period Jan – Dec 2005 2) Build best in class agency ¾ Productivity o
Slide 28: MNYL's Strategy to build a Strong Life Insurance Business
MNYL’S Strategy to build a Strong Life Insurance Business 4) Current paid up capital base of $117 Mn 5) Strong quality orientations to business ¾ First life insurer to be awarded the ISO 9000 : 2001 certification ¾ 6 sigma program underway ¾ Balanced scorecard approach ¾ Good Audit & Compliance orie
Slide 29: Protection Oriented, Longer Tenor Life Insurance
Protection Oriented, Longer Tenor Life Insurance Tenure Age of Insured PROPORTION OF (Years) (Years) PRODUCT TYPE POLICIES (%, by number) 34 36 WHOLE LIFE 31 26 26 ENDOWMENT 22 22 37 TERM 4 17 42 DEFERRED 1 ANNUITY 12 37 MONEY BACK 24 UNIT LINKED 10 22 35 EASY TERM 8 23 37 Actuarial Persistency of 7
Slide 30: Established Ourselves amongst the Leading Agency Sales Force
Established Ourselves amongst the Leading Agency Sales Force Adjusted Single Premium New Business Apr - Premium per Agent * Dec 2005 (Agency) Agents Cases per Agent * ($) (US$ Mn) 193 60000 268 0.6 94 60000 130 0.4 63 28000 187 0.5 53 Rank4 10753 415 Rank1 1.8 Rank1 31 20000 128 0.2 27 35000 64 0.3
Slide 31: Our Footprint
Our Footprint Phagwara Navashahar Punjab Moga Chandigarh Patiala Gurgaon Faridabad Bhatinda Jaipur Delhi Noida Jodhpur Lucknow Sangrur Udaipur Nasik Ludhiana Ahmedabad Indore Nagpur Jalandhar Baroda Kolkata Rajkot Amritsar Surat Actual customer Aurangabad base spread Mumbai Thane over 100 cities Hyd
Slide 32: Market Position – 2005
Market Position–2005 Insurance Sales (US $ Mn) Individual New Business Policies (‘000) Premium (Apr-Dec 2005) (Apr-Dec 2005) ICICI Prudential 276 492 Bajaj Allianz 144 379 HDFC Standard Life 105 222 Birla Sun Life 73 150 Max New York Life 62 5 298 3 Tata AIG 59 211 Aviva 46 88 All Others 103 378 Tot
Slide 33: Max New York Life Insurance Key Business Drivers
MAX NEW YORK LIFE INSURANCE Quarter Ended Year Ended YoY Key Business Drivers Unit Dec-05 Dec-04 Dec-05 Dec-04 Growth a) Sales Value (Annualized first year premium) $ Mn 26.9 16.9 95.1 47.6 100% b) Average case size per agent $ 369 301 349 272 28% c) Case rate per agent per month No. 2.29 2.14 1.84
Slide 34: Other Businesses
Other Businesses 34
Slide 35: Neeman Medical International
NEEMAN MEDICAL INTERNATIONAL Neeman Medical International is a value added Clinical Research Service Organization. Neeman’s goal is to provide highly competent GCP/ICH compliant Investigators in several geographies, who have access to patients and dedicated Clinical Research Coordinators. This allow
Slide 36: Neeman Medical International – Expanding Geographies
NEEMAN MEDICAL INTERNATIONAL North America India EXPANDING GEOGRAPHIES Alabama 32 sites in 9 Major North Carolina Cities New Jersey Large diverse Texas population Wisconsin Tie ups with 9 Arizona hospitals Philadelphia San Jose, Latin America Costa Rica Nicaragua Established
Slide 37: Neeman Medical International
NEEMAN MEDICAL INTERNATIONAL Working towards Preferred Service Provider status • Through sustained positioning efforts, getting sponsor Pharma companies to direct CROs to work only with Neeman. • Re-working business mix: Towards direct sponsor company centric from CRO centric as of today. Commission
Slide 38: Neeman Medical International
NEEMAN MEDICAL INTERNATIONAL Neeman Latin America • Currently operating in Costa Rica and Nicaragua • Expands to Brazil, Argentina and Chile • Working on potential alliance in Guatemala • Having 13 years of Clinical Research operations • 140 trials conducted. Audited by US FDA 5 times Neeman USA • L
Slide 39: Max Speciality Products
MAX SPECIALITY PRODUCTS ¾ Substantial expansion plans approved in December 2005 Addition of a new BOPP film manufacturing line with a capacity of 20,000 TPA. Addition of a new thermal lamination film line with a capacity of 120,000 KSM. Estimated project cost of $27 Mn – Debt-Equity mix of 1:1
Slide 40: Thank You
Thank You 40