Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Q2 FY2022 Earnings Presentation
79 slides from Healthcare Global Enterprises's earnings presentation, Nov 11, 2021
Slide 1: Stock exchange cover letter: Investor Presentation
November 11, 2021 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,
Slide 2: Healthcare Global Enterprises Limited Q2-FY22 Investor Presentation
HEALTHCARE GLOBAL ENTERPRISES LIMITED Q2-FY22 INVESTOR PRESENTATION
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: Hope: India's Leading Oncology Focused Network
INDIA’S LEADING ONCOLOGY FOCUSED NETWORK HOPE FOR CANCER PA TI EN TS www.hcgel.com 3
Slide 5: Overview
OVERVIEW C an cer Care • Comprehensive cancer diagnosis and treatment services (offering radiation therapy, medical oncolog y and surger y) • 22 2 comprehensive cancer centers (including Kenya) B ACKG RO UN D Fertility Treatment Multi-Speciality One of the Largest1 provider of cancer care in India u
Slide 6: Execution Focused
EXECUTION FOCUSED L a s e r s h ar p fo c u s o n le ad ers hi p Pen etrate key r e g i o n s t h ro u gh in O n c o l o g y in Ind ia MARKETS o r ga n i c / i n o rga n i c o p p o rt uni tie s D e li ver m a r g i n im p ro vement , Transform p r o c e s s e s & c a s h flow ge n erat i o n & s t
Slide 7: Key Investment Highlights
K E Y INVESTMENT HIGHLIGHTS Q U A L I T Y: Infra, technology, talent, outcomes F A V O R A B L E I N D U S T R Y DY N A M I C S : meeting global standards Oncology growing faster than market F O C U S E D C A R E MODEL: Independent comprehensive LEADING ONCOLOGY NETWORK: cancer centers No.1 market p
Slide 8: Business Model
BUSINESS MODEL SAVITA DEVI, CANC ER WINNER I chose the hospital that said my cancer could be treated over the hospital that said I only had six months. www.hcgel.com 7
Slide 9: Oncology Incidence in India
ONCOLOGY INCIDENCE IN INDIA INCIDENCE ACROSS I N C I D E N C E S IN INDIA TO COUNTRIES G R O W T O ~2MN CASES B Y F Y 2 4 ¹ 2 I n c i d en c e o f n ew ca n c er c a s e s ( ‘ 0 0 0 ) 4 .4 % 1,9 75 4 .7% 1,59 4 1,389 51% 50% Male 50% 50% 49% F emale 50% FY16 FY19 F Y 24 1Call for Action: Expanding c
Slide 10: Key Drivers of Oncology Opportunity
K EY DRIVERS OF ONCOLOGY OPPORTUNITY 1 2 3 Demographic Changes Exposure to Risk Factors Narrowing Diagnosis Gap Incidences increases with ageing - population Tobacco use, alcohol consumption, use of Growing awareness and greater public >50+ yrs to increase to 262mn, expected to processed food and ai
Slide 11: Oncology Opportunity: Growing Faster Than Market
O N C O L OG Y OPPORTUNITY: GROWING FASTER THAN MARKET O N C O L O G Y E X P E C T E D TO G R O W FA S T E R G R O W T H I N O N C O L O G Y M O R TA L I T Y A C A U S E T H A N T H E O V E R A L L H E A LT H C A R E M A R K E T FOR CONCERN & NEEDS FOCUSED INTERVENTION C a nc er C are market in Indi
Slide 12: HCG Journey
HCG JOURNEY Bangalore Institute of Oncology Company ’s name changed to Acquired the 1st privately owned 1st Comprehensive H C G Ahmedabad, 1st privately commences operations. HealthCare Global Enterprises Pvt. Ltd. comprehensive cancer center in Karnataka. Cancer Care Center in Jharkhand. owned Comp
Slide 13: Sustainable Business Model in Oncology
S U S T A I N A B L E B U S I N E S S M O D E L IN O N C O L O G Y 1 4 • Oncologist promoted with local • Larg es t oncol ogy br and & network collaborations have built strong legacy as with hybrid presence (metros / a P r e m i e r O n c o l o g y institution Tier 2,3 towns) pan-I ndia 2 • Late st
Slide 14: Quality Focused
SHANKAR, C AN CER WINNER QUALITY FOCUSED The days I was at HCG, I felt like I was sleeping at home. They never stop caring for you. The doctors and nurses are always finding ways to make this d i icu l t journey as comfortable as possible. www.hcgel.com 13
Slide 15: Leadership Across Advanced & Precision Technologies / Specialized Procedures
LEADERSHIP ACROSS ADVANCED & PRECISION TECHNOLOGIES / SPECIALIZED PROCEDURES DIAGNOSTICS IMA G E T O TA L P E T C T S : DI GITAL P E T CT: 1 N O . S 17 N O . S DI GITAL PATHOLOGY: ACROSS NETWORK M OLECULAR / GENOMICS LAB : 1 NO.S RADIOT H E R A PY T O TA L LINACS: 31 N O . S C YB ER KN I FE : 2 N O
Slide 16: Unique Oncologist Engagement Model
UNIQUE ONCOLOGIST ENGAGEMENT MODEL INSTITUTION-FIRST L O YA LT Y A N D S U S TA I N A B I L I T Y Exclusive engagement with flexibility on pay-out Access to best practices, leading technologies, structures (payroll, consultant, fee-for-service) complex cases & large patient volumes Expert clinicians
Slide 17: Quality, Research & Academics Ecosystem
Q UA L I T Y, R E S E A R C H & A C A D E M I C S E C O S Y S T E M Q U A L I T Y & R E S E A R C H I N I T I AT I V E S Grants by Ministry of AY US H and D S T 101 * PUBLI CATI ON PUBL I S H E D Innovation @ H C G Life of a Laryngectomy person I s marked b y many problems including no voice Oral pr
Slide 18: Focus on Expertise & Excellence in Oncology
F O C U S O N E X P E R T I S E & E X C E L L E N C E IN O N C O L O G Y Multi-disciplinar y Tu m o r B o a r d C O V E R A G E B Y H A R VA R D UNIQUE BUSINESS MODEL G L O B A L LY C O M PA R A B L E O U T C O M E S Molecular Imaging / R o b ot i c N u c l ea r S u rg e r y S U R V I VA L R AT E CO
Slide 19: Clinical Milestones
CLINICAL MILESTONES Asia's first bloodless We introduced biological HCG has conducted the Bone Marrow Transplant was reconstruction to treat bone largest number of Breast performed by our experts. cancer in India. Conservation Surgeries in India. India's first Computer Assisted Cyberheart – Fi rs t
Slide 20: Market Leadership
MARKET LEADERSHIP ARJ UN MANDAL, C AN CER WINNER I wholeheartedly thank Dr Aftab and HCG team for diligently handling my case and helping me recover without any diiculties. I am delighted to say that today I am leading a healthy and cancer-free life. www.hcgel.com 19
Slide 21: India's Premier Cancer Care Network
I N DIA ’ S P R E M I E R C A N C E R C A R E N E T W O R K Center of Excellence (CoE)1 HCG NETWORK Comprehensive Cancer center (21) 2 Cancer centers Under Development (1) 1 ,9 4 4 1 ,7 0 2 31 NCR O P E R ATI O N AL LI NEAR C AP AC I TY BEDS3 BEDS3 ACCEL ER AT ORS Jaipur Ahmedabad Baroda Ranchi Kolk
Slide 22: India's Premier Cancer Care Network
I N DIA ’ S P R E M I E R C A N C E R C A R E N E T W O R K N o . 1 in A n d h ra P rad es h 3 centers; 155 beds No.1 in Gujarat 5 centers; 403 beds No.1 in Ka r n ataka 7 centers; 5 14 beds NCR No.1 in O d i s h a & J h a r k h a n d Jaipur S c a l i n g in W. B e n ga l 3 centers; 239 beds Ahmedab
Slide 23: Unmatched Presence in Non-Metro Markets
U N M A T C H E D P R E S E N C E IN N O N - M E T R O M A R K E T S COMPREHENSIVE C A N C E R CENT ERS NON-METRO C E N T E R S BEDS(#) MARKET POSITION T H E ‘ BH AR AT ’ O P P O R T U N I T Y: NASHIK 206 NO.1 G A P S IN R U R A L H E A LT H C A R E M A R K E T NAGPUR 121 NO.1 Over 6 0% of populatio
Slide 24: Specialization Driving Competitive Advantages
S P E C I A L I Z A T I O N DRIVING COMPETITIVE ADVANTAGES PA R A M E T E R S D R I V I N G E XC E L L E N C E I N O N C O L O G Y HCG MODEL MULT I - S P E C I A LT Y MODEL 1 . D e d i c at e d / I n d e p e n d e n t a n d ‘built-to-suit ’ facilities Established Absent 2 . C o m p r e h e n s i ve
Slide 25: Significant Scale, Focus & Presence Over Peers
SIGNIFICANT SCALE, F OCUS & PRE SEN C E OVER PE E RS No. o f c o m p re he n s i ve c a n c er c enters in I nd ia 21 ~2x presence / patient catchment for S C A L E O F O P E R AT I O N S & I N F R A S T R U C T U R E o n co l og y compared to 2nd largest player 11 10 8 5 6 6 5 2 3 1 1 HC G A pollo
Slide 26: Sustainability
SUSTAINABILITY SUBASINI LENKA, C ANCER WINNER I am eternally thankful to Dr Panda and other specialists at HCG Panda Cancer Hospital, as the specialists were able to treat my condition the right way, the first time. www.hcgel.com 25
Slide 27: Demonstrated Track Record
DEMONSTRATED TRA CK RE CO RD Total Revenue (INR mn) Existing Oncology Centers CAGR:17.1% E BI TDA (INR mn) 10 ,999 CAGR:16.2% 9,787 8,30 7 7,0 0 1 1,671 5,842 9 18 F Y16 F Y17 F Y18 F Y19 F Y20 F Y16 F Y17 FY18 FY19 FY20 Center-level EBITDA, pre-corporate expenses; pre-IndAS adjustment www.hcgel.com
Slide 28: Strong Growth & Leadership Strategy
STRONG GROWTH & LEADERSHIP STRATEGY E x is t i n g C en te rs N e w C e nt er s Singular organization focus driving growth Stabilize operations and drive strong ramp-up Optimization measures to improve margin Clinical engagement to bring best talent and Cohesive engagement of clinical, sales & Ops t
Slide 29: Promoters with Strong Pedigree
PROMOTERS WITH STRONG PEDIGREE O N C O L O G Y DOMAIN K N O W L E D G E A N D E X P E R I E N C E IN I ND IA/U S A M BBS from St.Johns & Radiation / Medical oncologist from MD Anderson Dr. BS Ajaikumar Over 4 0yr s+ of experience in practicing oncology in India & US Promoter & Awarded the Ernst and
Slide 30: Responsibility & Governance Focused
RESPONSIBLITY & GOVERNANCE FOCUSED SETTING ESG BENCHMARKS Pioneer among hospitals to adopt Integrated • Managing energy needs as an integral part of operational strategy to ensure e i c i e n t Reporting (IR) Establishing an environmental policy Framework in FY19 with energy utilization Assessing th
Slide 31: Financial Highlights
INDIA’S LEADING ONCOLOGY FOCUSED NETWORK FINANCIAL HIGHLIGHTS HOPE FOR CANCER PA TI EN TS www.hcgel.com 30
Slide 32: Financial Highlights: Q2-FY22
FI N AN CI AL HI G HLI GH TS: Q 2 - F Y 2 2 I NR million except earnings per share Growth Period ended Sep'21 Q2-FY22 Q2-FY21 (y-o-y) Q2’22 Revenue grew by 42 % y-o-y Income from Operations 3,520 2,479 42.0% HCG(1) centers: +41 % EBITDA (1) 650 340 Milann centers: +57 % 91.1% EBI TDA margin (%)
Slide 33: Financial Highlights: H1-FY22
FI N AN CI AL HI G HLI GH TS: H 1 - F Y 2 2 I NR million except earnings per share Growth Period ended H1-FY22 H1-FY22 H1-FY21 (y-o-y) H1-FY22 Revenue grew by 53 % y-o-y Income from Operations 6,751 4,414 53.0% HCG(1) centers: +52 % EBITDA (1) 1197 561 Milann centers: +72 % 113.3% EBI TDA margin
Slide 34: Revenue Mix: Q2-FY22
R E V E N U E M I X : Q2-F Y 2 2 Re ve n u e : H C G Centers : INR 3,520 Mn INR 3,345 Mn HCG Gujar at C ENT ERS 26% 95% (30%)1 (96%)1 Karnataka 34% (32%)1 North India Fertil ity 2% Maharashtra C ENT ERS (2%)1 19% 5% (17%)1 (4%)1 Tamil Nadu 2% A.P . East India (1%)1 8% 9% 22 comprehensive cancer cent
Slide 35: HCG Centers: Q2-FY22 Revenues
H C G CE NT ERS: Q 2 - F Y 2 2 R E V E N U E S I NR million Growth Growth Period ended Sep'21 Q2-FY22 Q2-FY21 (y-o-y) H1-FY22 H1-FY21 (y-o-y) • Strong growth in revenue continues across Karnataka 1,129 794 42.2% 2,240 1,490 50.3% centers in Q2-FY22 Gujarat 879 701 25.4% 1,748 1,161 50.6% South Mum
Slide 36: HCG Centers: Q2-FY22 Operating Metrics
H C G CE NT ERS: Q 2 - F Y 2 2 O P E R A T I N G M E T R I C S Avg. Occupancy I n c reas e in A v g . O c c u p a n c y R at e in Q 2 - F Y 2 2 ( y - o - y ) No. of centers1 Beds2 Rate (AOR)2 53.3% vs 49.8% (Consolidated) Q2FY22: Q1FY21: Q2FY22: Q2FY21 : Q2FY22: Q2FY21 : 50.3% vs 46.9% (Existing
Slide 37: HCG Centers: Q2-FY22 Regional Highlights
H C G CE NT ERS: Q2 - F Y 2 2 R E G I O N A L H I G H L I G H T S Revenue Operating Centers Beds AOR ARPOB/Day (INR Mn) EBITDA% COE performance COE performance in Q2-FY22 in Q4-FY21 Revenue Revenue growthgrowth 51.9% 21.5% q-o-q y-o-y & 6.6% y-o-y 60.7% 40.8 K 1,129 23.0% ARPOB ARPOB of I
Slide 38: Milann: Implementing Strategic Initiatives
MILANN: I M PL E M E N TI N G ST R A TE G I C I N I T I A TI VE S Bengaluru (5 centers) Growth Period ended Sep'21 Q2-FY22 Q2-FY21 (y-o-y) M S Ramaiah Nagar New Registrations 1014 797 27.2% Shivananda Indiranagar Whitefield IVF Cycles 431 373 15.5% JP Nagar Revenues (INR mn) 174 111 56.9% North Indi
Slide 39: Capital Expenditure & Net Debt
C A PI T A L E X P E N D I T UR E & N E T D E BT I NR million C A P I TA L E X P E N D I T U R E NET DEBT H1-FY22 FY21 30 Sep' 21 30 Jun' 21 HCG Centers Net Debt (1) Bank Debt 3,427 4,229 Existing Centers 157 97 (2) Vendor Finance 250 401 Expansions 0 114 Other debt 45 31 New Centers 26 140 (3) Less
Slide 40: Thank You
For updates and specific queries, please visit www.hcgel.com or feel free to contact investors@hcgoncology.com © 2021 HealthCare Global Enterprises Limited., All Rights Reserved. HCG Logo is trademark of HealthCare Global Enterprises Limited. In addition to Company data, data from market research ag
Slide 41: Healthcare Global Enterprises Limited Q2-FY22
HEALTHCARE GLOBAL ENTERPRISES LIMITED Q2-FY22 INVESTOR PRESENTATION
Slide 42: 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 43: Hope: India's Leading Oncology Focused Network
INDIA’S LEADING ONCOLOGY FOCUSED NETWORK HOPE FOR CANCER PA TI EN TS www.hcgel.com 3
Slide 44: Overview
OVERVIEW C an cer Care • Comprehensive cancer diagnosis and treatment services (offering radiation therapy, medical oncolog y and surger y) • 22 2 comprehensive cancer centers (including Kenya) B ACKG RO UN D Fertility Treatment Multi-Speciality One of the Largest1 provider of cancer care in India u
Slide 45: Execution Focused
EXECUTION FOCUSED L a s e r s h ar p fo c u s o n le ad ers hi p Pen etrate key r e g i o n s t h ro u gh in O n c o l o g y in Ind ia MARKETS o r ga n i c / i n o rga n i c o p p o rt uni tie s D e li ver m a r g i n im p ro vement , Transform p r o c e s s e s & c a s h flow ge n erat i o n & s t
Slide 46: Key Investment Highlights
K E Y INVESTMENT HIGHLIGHTS Q U A L I T Y: Infra, technology, talent, outcomes F A V O R A B L E I N D U S T R Y DY N A M I C S : meeting global standards Oncology growing faster than market F O C U S E D C A R E MODEL: Independent comprehensive LEADING ONCOLOGY NETWORK: cancer centers No.1 market p
Slide 47: Business Model
BUSINESS MODEL SAVITA DEVI, CANC ER WINNER I chose the hospital that said my cancer could be treated over the hospital that said I only had six months. www.hcgel.com 7
Slide 48: Oncology Incidence in India
ONCOLOGY INCIDENCE IN INDIA INCIDENCE ACROSS I N C I D E N C E S IN INDIA TO COUNTRIES G R O W T O ~2MN CASES B Y F Y 2 4 ¹ 2 I n c i d en c e o f n ew ca n c er c a s e s ( ‘ 0 0 0 ) 4 .4 % 1,9 75 4 .7% 1,59 4 1,389 51% 50% Male 50% 50% 49% F emale 50% FY16 FY19 F Y 24 1Call for Action: Expanding c
Slide 49: Key Drivers of Oncology Opportunity
K EY DRIVERS OF ONCOLOGY OPPORTUNITY 1 2 3 Demographic Changes Exposure to Risk Factors Narrowing Diagnosis Gap Incidences increases with ageing - population Tobacco use, alcohol consumption, use of Growing awareness and greater public >50+ yrs to increase to 262mn, expected to processed food and ai
Slide 50: Oncology Opportunity: Growing Faster Than Market
O N C O L OG Y OPPORTUNITY: GROWING FASTER THAN MARKET O N C O L O G Y E X P E C T E D TO G R O W FA S T E R G R O W T H I N O N C O L O G Y M O R TA L I T Y A C A U S E T H A N T H E O V E R A L L H E A LT H C A R E M A R K E T FOR CONCERN & NEEDS FOCUSED INTERVENTION C a nc er C are market in Indi
Slide 51: HCG Journey
HCG JOURNEY Bangalore Institute of Oncology Company ’s name changed to Acquired the 1st privately owned 1st Comprehensive H C G Ahmedabad, 1st privately commences operations. HealthCare Global Enterprises Pvt. Ltd. comprehensive cancer center in Karnataka. Cancer Care Center in Jharkhand. owned Comp
Slide 52: Sustainable Business Model in Oncology
S U S T A I N A B L E B U S I N E S S M O D E L IN O N C O L O G Y 1 4 • Oncologist promoted with local • Larg es t oncol ogy br and & network collaborations have built strong legacy as with hybrid presence (metros / a P r e m i e r O n c o l o g y institution Tier 2,3 towns) pan-I ndia 2 • Late st
Slide 53: Quality Focused
SHANKAR, C AN CER WINNER QUALITY FOCUSED The days I was at HCG, I felt like I was sleeping at home. They never stop caring for you. The doctors and nurses are always finding ways to make this d i icu l t journey as comfortable as possible. www.hcgel.com 13
Slide 54: Leadership Across Advanced & Precision Technologies / Specialized Procedures
LEADERSHIP ACROSS ADVANCED & PRECISION TECHNOLOGIES / SPECIALIZED PROCEDURES DIAGNOSTICS IMA G E T O TA L P E T C T S : DI GITAL P E T CT: 1 N O . S 17 N O . S DI GITAL PATHOLOGY: ACROSS NETWORK M OLECULAR / GENOMICS LAB : 1 NO.S RADIOT H E R A PY T O TA L LINACS: 31 N O . S C YB ER KN I FE : 2 N O
Slide 55: Unique Oncologist Engagement Model
UNIQUE ONCOLOGIST ENGAGEMENT MODEL INSTITUTION-FIRST L O YA LT Y A N D S U S TA I N A B I L I T Y Exclusive engagement with flexibility on pay-out Access to best practices, leading technologies, structures (payroll, consultant, fee-for-service) complex cases & large patient volumes Expert clinicians
Slide 56: Quality, Research & Academics Ecosystem
Q UA L I T Y, R E S E A R C H & A C A D E M I C S E C O S Y S T E M Q U A L I T Y & R E S E A R C H I N I T I AT I V E S Grants by Ministry of AY US H and D S T 101 * PUBLI CATI ON PUBL I S H E D Innovation @ H C G Life of a Laryngectomy person I s marked b y many problems including no voice Oral pr
Slide 57: Focus on Expertise & Excellence in Oncology
F O C U S O N E X P E R T I S E & E X C E L L E N C E IN O N C O L O G Y Multi-disciplinar y Tu m o r B o a r d C O V E R A G E B Y H A R VA R D UNIQUE BUSINESS MODEL G L O B A L LY C O M PA R A B L E O U T C O M E S Molecular Imaging / R o b ot i c N u c l ea r S u rg e r y S U R V I VA L R AT E CO
Slide 58: Clinical Milestones
CLINICAL MILESTONES Asia's first bloodless We introduced biological HCG has conducted the Bone Marrow Transplant was reconstruction to treat bone largest number of Breast performed by our experts. cancer in India. Conservation Surgeries in India. India's first Computer Assisted Cyberheart – Fi rs t
Slide 59: Market Leadership
MARKET LEADERSHIP ARJ UN MANDAL, C AN CER WINNER I wholeheartedly thank Dr Aftab and HCG team for diligently handling my case and helping me recover without any diiculties. I am delighted to say that today I am leading a healthy and cancer-free life. www.hcgel.com 19
Slide 60: India's Premier Cancer Care Network
I N DIA ’ S P R E M I E R C A N C E R C A R E N E T W O R K Center of Excellence (CoE)1 HCG NETWORK Comprehensive Cancer center (21) 2 Cancer centers Under Development (1) 1 ,9 4 4 1 ,7 0 2 31 NCR O P E R ATI O N AL LI NEAR C AP AC I TY BEDS3 BEDS3 ACCEL ER AT ORS Jaipur Ahmedabad Baroda Ranchi Kolk
Slide 61: India's Premier Cancer Care Network
I N DIA ’ S P R E M I E R C A N C E R C A R E N E T W O R K N o . 1 in A n d h ra P rad es h 3 centers; 155 beds No.1 in Gujarat 5 centers; 403 beds No.1 in Ka r n ataka 7 centers; 5 14 beds NCR No.1 in O d i s h a & J h a r k h a n d Jaipur S c a l i n g in W. B e n ga l 3 centers; 239 beds Ahmedab
Slide 62: Unmatched Presence in Non-Metro Markets
U N M A T C H E D P R E S E N C E IN N O N - M E T R O M A R K E T S COMPREHENSIVE C A N C E R CENT ERS NON-METRO C E N T E R S BEDS(#) MARKET POSITION T H E ‘ BH AR AT ’ O P P O R T U N I T Y: NASHIK 206 NO.1 G A P S IN R U R A L H E A LT H C A R E M A R K E T NAGPUR 121 NO.1 Over 6 0% of populatio
Slide 63: Specialization Driving Competitive Advantages
S P E C I A L I Z A T I O N DRIVING COMPETITIVE ADVANTAGES PA R A M E T E R S D R I V I N G E XC E L L E N C E I N O N C O L O G Y HCG MODEL MULT I - S P E C I A LT Y MODEL 1 . D e d i c at e d / I n d e p e n d e n t a n d ‘built-to-suit ’ facilities Established Absent 2 . C o m p r e h e n s i ve
Slide 64: Significant Scale, Focus & Presence Over Peers
SIGNIFICANT SCALE, F OCUS & PRE SEN C E OVER PE E RS No. o f c o m p re he n s i ve c a n c er c enters in I nd ia 21 ~2x presence / patient catchment for S C A L E O F O P E R AT I O N S & I N F R A S T R U C T U R E o n co l og y compared to 2nd largest player 11 10 8 5 6 6 5 2 3 1 1 HC G A pollo
Slide 65: Sustainability
SUSTAINABILITY SUBASINI LENKA, C ANCER WINNER I am eternally thankful to Dr Panda and other specialists at HCG Panda Cancer Hospital, as the specialists were able to treat my condition the right way, the first time. www.hcgel.com 25
Slide 66: Demonstrated Track Record
DEMONSTRATED TRA CK RE CO RD Total Revenue (INR mn) Existing Oncology Centers CAGR:17.1% E BI TDA (INR mn) 10 ,999 CAGR:16.2% 9,787 8,30 7 7,0 0 1 1,671 5,842 9 18 F Y16 F Y17 F Y18 F Y19 F Y20 F Y16 F Y17 FY18 FY19 FY20 Center-level EBITDA, pre-corporate expenses; pre-IndAS adjustment www.hcgel.com
Slide 67: Strong Growth & Leadership Strategy
STRONG GROWTH & LEADERSHIP STRATEGY E x is t i n g C en te rs N e w C e nt er s Singular organization focus driving growth Stabilize operations and drive strong ramp-up Optimization measures to improve margin Clinical engagement to bring best talent and Cohesive engagement of clinical, sales & Ops t
Slide 68: Promoters with Strong Pedigree
PROMOTERS WITH STRONG PEDIGREE O N C O L O G Y DOMAIN K N O W L E D G E A N D E X P E R I E N C E IN I ND IA/U S A M BBS from St.Johns & Radiation / Medical oncologist from MD Anderson Dr. BS Ajaikumar Over 4 0yr s+ of experience in practicing oncology in India & US Promoter & Awarded the Ernst and
Slide 69: Responsibility & Governance Focused
RESPONSIBLITY & GOVERNANCE FOCUSED SETTING ESG BENCHMARKS Pioneer among hospitals to adopt Integrated • Managing energy needs as an integral part of operational strategy to ensure e i c i e n t Reporting (IR) Establishing an environmental policy Framework in FY19 with energy utilization Assessing th
Slide 70: Financial Highlights
INDIA’S LEADING ONCOLOGY FOCUSED NETWORK FINANCIAL HIGHLIGHTS HOPE FOR CANCER PA TI EN TS www.hcgel.com 30
Slide 71: Financial Highlights: Q2-FY22
FI N AN CI AL HI G HLI GH TS: Q 2 - F Y 2 2 I NR million except earnings per share Growth Period ended Sep'21 Q2-FY22 Q2-FY21 (y-o-y) Q2’22 Revenue grew by 42 % y-o-y Income from Operations 3,520 2,479 42.0% HCG(1) centers: +41 % EBITDA (1) 650 340 Milann centers: +57 % 91.1% EBI TDA margin (%)
Slide 72: Financial Highlights: H1-FY22
FI N AN CI AL HI G HLI GH TS: H 1 - F Y 2 2 I NR million except earnings per share Growth Period ended H1-FY22 H1-FY22 H1-FY21 (y-o-y) H1-FY22 Revenue grew by 53 % y-o-y Income from Operations 6,751 4,414 53.0% HCG(1) centers: +52 % EBITDA (1) 1197 561 Milann centers: +72 % 113.3% EBI TDA margin
Slide 73: Revenue Mix: Q2-FY22
R E V E N U E M I X : Q2-F Y 2 2 Re ve n u e : H C G Centers : INR 3,520 Mn INR 3,345 Mn HCG Gujar at C ENT ERS 26% 95% (30%)1 (96%)1 Karnataka 34% (32%)1 North India Fertil ity 2% Maharashtra C ENT ERS (2%)1 19% 5% (17%)1 (4%)1 Tamil Nadu 2% A.P . East India (1%)1 8% 9% 22 comprehensive cancer cent
Slide 74: HCG Centers: Q2-FY22 Revenues
H C G CE NT ERS: Q 2 - F Y 2 2 R E V E N U E S I NR million Growth Growth Period ended Sep'21 Q2-FY22 Q2-FY21 (y-o-y) H1-FY22 H1-FY21 (y-o-y) • Strong growth in revenue continues across Karnataka 1,129 794 42.2% 2,240 1,490 50.3% centers in Q2-FY22 Gujarat 879 701 25.4% 1,748 1,161 50.6% South Mum
Slide 75: HCG Centers: Q2-FY22 Operating Metrics
H C G CE NT ERS: Q 2 - F Y 2 2 O P E R A T I N G M E T R I C S Avg. Occupancy I n c reas e in A v g . O c c u p a n c y R at e in Q 2 - F Y 2 2 ( y - o - y ) No. of centers1 Beds2 Rate (AOR)2 53.3% vs 49.8% (Consolidated) Q2FY22: Q1FY21: Q2FY22: Q2FY21 : Q2FY22: Q2FY21 : 50.3% vs 46.9% (Existing
Slide 76: HCG Centers: Q2-FY22 Regional Highlights
H C G CE NT ERS: Q2 - F Y 2 2 R E G I O N A L H I G H L I G H T S Revenue Operating Centers Beds AOR ARPOB/Day (INR Mn) EBITDA% COE performance COE performance in Q2-FY22 in Q4-FY21 Revenue Revenue growthgrowth 51.9% 21.5% q-o-q y-o-y & 6.6% y-o-y 60.7% 40.8 K 1,129 23.0% ARPOB ARPOB of I
Slide 77: Milann: Implementing Strategic Initiatives
MILANN: I M PL E M E N TI N G ST R A TE G I C I N I T I A TI VE S Bengaluru (5 centers) Growth Period ended Sep'21 Q2-FY22 Q2-FY21 (y-o-y) M S Ramaiah Nagar New Registrations 1014 797 27.2% Shivananda Indiranagar Whitefield IVF Cycles 431 373 15.5% JP Nagar Revenues (INR mn) 174 111 56.9% North Indi
Slide 78: Capital Expenditure & Net Debt
C A PI T A L E X P E N D I T UR E & N E T D E BT I NR million C A P I TA L E X P E N D I T U R E NET DEBT H1-FY22 FY21 30 Sep' 21 30 Jun' 21 HCG Centers Net Debt (1) Bank Debt 3,427 4,229 Existing Centers 157 97 (2) Vendor Finance 250 401 Expansions 0 114 Other debt 45 31 New Centers 26 140 (3) Less
Slide 79: Thank You
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HealthCare Global Enterprises — Q2 FY2022 Earnings Presentation on 6ix