Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP

Apollo Hospitals Enterprise — Q2 FY2015 Earnings Presentation

23 slides from Apollo Hospitals Enterprise's earnings presentation, 2014

1. Slide 1: Q2 FY 2015 Earnings Update

   Yo TOUCHING LIVES Q2 FY 2015 Earnings Update

2. Slide 2: Safe Harbour

   Safe Harbour No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the

3. Slide 3: Contents

   Contents • Highlights • Standalone Financial Performance • Consolidated Financial Performance • Operational Performance – Hospitals • Operational Performance – Standalone Pharmacy • Update on Projects • Update on non-hospital JVs 3

4. Slide 4: Highlights – (1/2)

   Highlights – (1/2) Financial  H1FY15 Consolidated Revenues of ` 25,175 mio (up 18.0% yoy) Performance  H1FY15 Consolidated EBITDA of ` 3,656 mn (up 7.7% yoy)  New Hospitals in initial stages of operations reported operating loss of ` 40 mio in H1FY15  AHLL reported an EBITDA loss of ` 100 mio 

5. Slide 5: Highlights – (2/2)

   Highlights – (2/2)  54 hospitals with total bed capacity of 9,091 beds as on Sep 30, 2014 Capacity  42 owned hospitals including JVs/ Subsidiaries and associates with 7,008 beds and 12 Managed hospitals with 2,083 beds.  Of the 7,008 owned beds capacity, 6,073 beds were operational and had an occ

6. Slide 6: Contents

   Contents • Highlights • Standalone Financial Performance • Consolidated Financial Performance • Operational Performance – Hospitals • Operational Performance – Standalone Pharmacy • Update on Projects • Update on non-hospital JVs 6

7. Slide 7: Standalone Financial Performance – Total – (1/3)

   Standalone Financial Performance – Total – (1/3) (` mio) Q2 FY 14 Q2 FY 15 yoy (%) H1 FY 14 H1 FY 15 yoy (%) Key Highlights Revenue 9,751 11,529 18.2% 18,701 22,066 18.0% Operative Expenses 5,057 6,088 20.4% 9,694 11,620 19.9%  H1FY15 Revenues of ` 22,066 mio, 18.0% yoy Employee Expenses 1,513 1,79

8. Slide 8: Standalone Financial Performance – Existing & New Breakup – (2/3)

   Standalone Financial Performance – Existing & New Breakup – (2/3) (` mio) Healthcare Key Highlights Services New (Existing) SAP Hospitals Standalone  Existing Health Care Services LFL (like for like) revenue H1 FY 15 growth at 8.1% Revenue 13,064 8,234 767 22,066 EBITDA 3,066 263 -40 3,289  Existi

9. Slide 9: Standalone Financial Performance – Total – (3/3)

   Standalone Financial Performance – Total – (3/3) (` mio) Q2 FY 14 Q2 FY 15 yoy (%) H1 FY 14 H1 FY 15 yoy (%) Key Highlights Revenues from each segment Heathcare Services* 6,365 7,158 12.5% 12,274 13,834 12.7%  Healthcare services Stand-alone Pharmacy 3,386 4,372 29.1% 6,429 8,234 28.1% Revenues at

10. Slide 10: Contents

    Contents • Highlights • Standalone Financial Performance • Consolidated Financial Performance • Operational Performance – Hospitals • Operational Performance – Standalone Pharmacy • Update on Projects • Update on non-hospital JVs 10

11. Slide 11: Consolidated Financial Performance - Total - (1/2)

    Consolidated Financial Performance (Unaudited Management Estimates) - Total - (1/2) (` mio) Q2 FY 14 Q2 FY 15 yoy (%) H1 FY 14 H1 FY 15 yoy (%) Key Highlights Income from Operations 10,420 12,350 18.5% 20,001 23,627 18.1% Add: Share of JVs 690 800 15.9% 1,328 1,548 16.6%  Revenue growth of 18.0% fr

12. Slide 12: Consolidated Financial Performance – Existing & New Breakup – (2/2)

    Consolidated Financial Performance – Existing & New Breakup – Total - (2/2) (` mio) Key Highlights Healthcare Services New AHLL (Existing) SAP Hospitals Munich (incl Cradle) Consol  Total healthcare service (existing) EBITDA margins H1 FY 15 reduced from 24.1% in H1FY14 to 22.9% in H1FY15 Revenue 1

13. Slide 13: Contents

    Contents • Highlights • Standalone Financial Performance • Consolidated Financial Performance • Operational Performance – Hospitals • Operational Performance – Standalone Pharmacy • Update on Projects • Update on non-hospital JVs 13

14. Slide 14: Operational Performance – Hospitals

    Operational Performance – Hospitals (` mio) AHEL Standalone Hospitals Total (5) Chennai cluster Hyderabad cluster Others(1) Significant subs/JVs/associates(2) Particulars H1 FY 14 H1 FY 15 yoy (%) H1 FY 14 H1 FY 15 yoy (%) H1 FY 14 H1 FY 15 yoy (%) H1 FY 14 H1 FY 15 yoy (%) H1 FY 14 H1 FY 15 yoy (%)

15. Slide 15: Contents

    Contents • Highlights • Standalone Financial Performance • Consolidated Financial Performance • Operational Performance – Hospitals • Operational Performance – Standalone Pharmacy • Update on Projects • Update on non-hospital JVs 15

16. Slide 16: Operational Performance – Standalone Pharmacy

    Operational Performance – Standalone Pharmacy (` mio) Batch Particulars Q2 FY 14 Q2 FY 15 yoy (%) H1 FY 14 H1 FY 15 yoy (%) Key Highlights Upto FY08 Batch No. of Stores 440 427 440 427 Revenue/Store 2.88 3.34 15.9% 5.59 6.43 15.0%  Revenues at ` 8,234 mio, EBITDA/Store 0.16 0.19 22.5% 0.31 0.37 20.

17. Slide 17: Contents

    Contents • Highlights • Standalone Financial Performance • Consolidated Financial Performance • Operational Performance – Hospitals • Operational Performance – Standalone Pharmacy • Update on Projects • Update on non-hospital JVs 17

18. Slide 18: Key Hospital Expansion Plan & Update on Execution

    Key Hospital Expansion Plan & Update on Execution (` mio) Total AHEL’s Estimated Share of Strategy for Expansion No. of Project Cost Cost Location CoD* Type of Hospital Beds (` mio) (` mio) Mumbai Cluster  Focus on owned hospitals Navi Mumbai FY16 Super Specialty 350 4374 4374  Plan to add 9 hospi

19. Slide 19: Contents

    Contents • Highlights • Standalone Financial Performance • Consolidated Financial Performance • Operational Performance – Hospitals • Operational Performance – Standalone Pharmacy • Update on Projects • Update on non-hospital JVs 19

20. Slide 20: Update on non-hospital JVs

    Update on non-hospital JVs (` mio) Apollo Munich Health Insurance Co Ltd Key Highlights Particulars Q2 FY 14 Q2 FY 15 yoy (%) H1 FY 14 H1 FY 15 yoy (%)  During H1FY15, the company Total Income 1,463 1,799 23.0% 2,864 3,557 24.2% achieved a Gross Written EBITDA (66) 34 -46 40 Premium (GWP) of ` 3,00

21. Slide 21: Q&A

    Q&A 21

22. Slide 22: Appendix: Basis of Consolidation

    Appendix: Basis of Consolidation AHEL Standalone Location Description Chennai Main Chennai Hospital ASH - Chennai Chennai Hospital Tondiarpet - Chennai Chennai Hospital FirstMed - Chennai Chennai Hospital Apollo Children's Hospital Chennai Hospital Apollo Specialty , Vanagaram Chennai Hospital Women

23. Slide 23: Hospitals – Understanding Key Operating Metrics

    Hospitals – Understanding Key Operating Metrics Description Formula / Calculation Key Driver  Number of operating beds  Project execution Operating Beds  Capital Expenditure x  In-patient Bed Days  In-patient Bed Days Billed  Brand Occupancy  Doctor reputation  Quality of outcomes x  Compet

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