Max Financial Services Limited · NSE:MFSL
Max Financial Services — Max India — Investor Presentation (October 2007)
40 slides from Max Financial Services's investor presentation, October 2007
Slide 1: Max India Limited Investor Presentation
Max India Limited Investor Presentation Disclaimer This presentation is a compilation of unaudited financial and other information. This may also contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertaintie
Slide 2: Max India – An Introduction
Max India – An Introduction Max India Limited 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’s other businesses are Speciality Plastic Products for the packaging
Slide 3: Max India – Life ….. Our Focus
Max India – Life ….. Our Focus Protecting Life through Life Insurance www.maxnewyorklife.com Caring for Life through Healthcare www.maxhealthcare.in Improving Life through Clinical Research www.neeman-medical.com 3
Slide 4: Max India – Key Highlights
Max India – Key Highlights n Promoted by Mr. Analjit Singh a prominent Indian industrialist, in 1988 n Amongst one of the leading conglomerates in India One of the leading life insurance players in India One of the leading healthcare services provider in India with 8 operational healthcare facil
Slide 5: Max India – Key Highlights
Max India – Key Highlights Consolidated Performance Summary US$ Mn Y-o-Y Y-o-Y US$ Mn Particulars H1 FY08 H1 FY07 2006-07 2005-06 Revenue Trend Grow th Grow th 504.7 Shareholders Funds 399.4 167.6 138% 152.6 162.4 -6% Borrow ings** 97.1 72.3 34% 97.3 63.3 54% Net Fixed Assets 170.4 131.2 30% 159.1 1
Slide 6: Max India – Group Structure
Max India – Group Structure Max India TRADITIONAL LIFE INSURANCE HEALTHCARE CLINICAL REAL BUSINESS HEALTHCARE STAFFING RESEARCH ESTATE OTHERS 73.32% 70.04%* 100% 85.20% 100% 100% MSP MNYL MAX MAX NEEMAN BV PHARMAX MAX UK HEALTHCARE HEALTHSTAFF Division of MAX: Life Insurance Holding Company Owns rea
Slide 7: Max India – Board of Directors
Max India – Board of Directors Director Profile Mr. Analjit Singh Mr. Singh has been the driving force behind Max Group’s sustained growth and success since the early 80’s. Mr. Singh a prominent industrialist is an alumnus of Doon School; University of Delhi, and the Graduate Executive Chairman Scho
Slide 8: Max Healthcare
Max Healthcare www.maxhealthcare.in 8
Slide 9: Max Healthcare Model
Max Healthcare Model Heart and Vascular Neurosciences n Heart and Vascular Institute Joint Replacement and Tertiary Orthopaedics n Super Speciality Hospital Obstetrics and Gynaecology Paediatrics Surgery and inpatient facilities Hospitals – 4 n High-end Diagnostics: Secondary MRI, CT n
Slide 10: Vision – Mission
Vision – Mission Key Differentiators PASSION Build Trust Focused NCR centric delivery – for operational excellence Deliver world class healthcare with a service focus, by creating an Close to customer – geography VISION institution committed to the highest standards of medical & service Compre
Slide 11: Max Healthcare – Board of Directors
Max Healthcare – Board of Directors Mr. Analjit Singh Chairman and Managing Director Mr. B Anantharaman Joint Managing Director, Max India Limited Dr. Ashok Seth Mr. KK Mathur Dr. RP Soonawala Mr. Aman Mehta Mr. Anuroop Singh Mr. Rajesh Khanna Warburg Pincus 11
Slide 12: Indian Healthcare
Indian Healthcare n Healthcare spending in India is expected to grow at 15% p.a. and estimated to contribute 6.1% of GDP in 2012 n Revenues generated by private hospitals currently estimated at around US$ 15.5 billion, likely to increase to US$ 35.9 billion by 2012 at a CAGR of 15% n Industry expect
Slide 13: Max Healthcare – Key Highlights
Max Healthcare – Key Highlights Fact Sheet Shareholding pattern Healthcare Facilities 8 Number of Outstanding Shares 237,144,548 Physicians 1,250* Max India Limited 70.0% Other Support Staff 2,700 Patient Base Over 500,000 Patient Transactions Over 125,000 pm Beds 770 ICU Beds 190 OTs 19 Cathlabs 3
Slide 14: Max Healthcare – Key Highlights
Max Healthcare – Key Highlights 14 US$ 1 = INR 39.50
Slide 15: Current Facilities
Current Facilities MAX HEART AND VASCULAR INSTITUTE – SAKET [South Delhi] n 200 patient beds n 3 Operation Theatres, 2 Cardiac Catheterization Labs n Post Surgery Critical Care Unit n High Dependency Unit n Apex Coronary Care n Advanced Coronary Care Unit n Exclusive well equipped ‘Observation Bay’
Slide 16: Current Facilities
Current Facilities MAX SUPER SPECIALITY HOSPITAL – SAKET [South Delhi] n 188 beds (including 63 critical care beds) n Includes: 7 OTs, 20 Consult Chambers Tower Specialties – Orthopaedics, Neuro Sciences, Obstetrics & Gynaecology and Paediatrics Brain Suite (first in Asia) and Intra Operative
Slide 17: Current Facilities
Current Facilities SECONDARY CARE MAX HOSPITALS OPERATIONAL AT… PITAMPURA NOIDA PATPARGANJ (February 2002) (August 2002) (May 2005) (North Delhi) (Suburb) (East Delhi) 90 inpatient beds 39 inpatient beds 147 inpatient beds 2 OT 2 OT 3 OT Lithotripsy Mother and Child care Mother and
Slide 18: Current Facilities
Current Facilities SPECIALITY CENTRES – PANCHSHEEL [South Delhi] OPTHALMOLOGY AND DENTAL CARE SPECIALIST CONSULTS AND (November 2005) HIGH-END DIAGNOSTICS (August 2006) Lasik, OPD and Diagnostics Dental – 3 chambers GP and Specialist Consults Support Services and Offices Full Diagnostics (
Slide 19: New Facility
New Facility MAX HOSPITAL – GURGAON [Suburb] n 108 Inpatient beds with 2 OTs n Tower Specialties Include: Ophthalmology (Anterior and Posterior) Woman and Child (including Infertility) Orthopaedics Nephrology and Urology Plastic and Reconstructive Surgeries General and Minimally Invasive
Slide 20: Second Phase of Expansion
Second Phase of Expansion National Capital Region Outside National Capital Region Max Balaji Hospital – Patparganj Max Hospital – Dehradun Tertiary Care High-end Secondary Care n Around 270 inpatient beds with 6 OTs and 1 n Around 100 inpatient beds – Launch Cathlab – Launch expected by December exp
Slide 21: Max Healthcare Project Cost and Funding
Max Healthcare Project Cost and Funding n Max India – $42 Mn Equity n Warburg Pincus – $35 Mn Capital n IFC, Washington – $13 Mn US$ 95 million n Other Foreign Investors – $5 Mn Project Preference Investment Capital n IFC, Washington – $63 Mn US$ 228 million US$ 63 million Debt n HDFC – $27 Mn Funds
Slide 22: Strengths and Growth Strategy
Strengths and Growth Strategy Strengths… n Comprehensive, integrated and world-class healthcare services with state-of-the-art infrastructure and facilities n Seamless delivery of services at every level of care n Established brand name throughout India with a network of specialist doctors n Network
Slide 23: Max New York Life Insurance
Max New York Life Insurance www.maxnewyorklife.com 23
Slide 24: Max New York Life Insurance [MNYL]
Max New York Life Insurance [ MNYL] n Joint Venture between Max India and New York Life International [ NYL ] n NYL, one of Fortune 100 companies provides insurance domain expertise n NYL is one of the oldest mutual life insurance company in the US with over $200 billion in assets under management n
Slide 25: MNYL road map to becoming India’s most admired Life Insurance Company
MNYL road map to becoming India’s most admired Life Insurance Company Key Public Messages VISION Become the most admired Life Insurance Company in India A trusted life insurance specialist Part of top quartile new Life Insurance Companies Customer centric National Player Financially respon
Slide 26: MNYL – Board of Directors
MNYL – Board of Directors Mr. Analjit Singh Chairman Mr. B Anantharaman Joint Managing Director, Max India Limited Mr. N. C. Singhal Mr. Rajesh Khanna Warburg Pincus Mr. Anuroop Singh Mr. Ted Mathas Mr. Ravi Akhoury Mr. Gary R. Bennett Chief Executive Officer and Managing Director Mr. Sunil Sharma E
Slide 27: India’s Life Insurance Industry is Witnessing Rapid Growth
India’s Life Insurance Industry is Witnessing Rapid Growth Staggering Growth Rate Private players capturing Unit-linked products driving growth market share n 36% CAGR in last 4 years n Share of unit linked products n 116% CAGR for private up at 50% in 2006 vs 10% in players in last 4 years 2004 n P
Slide 28: Protection Oriented, Longer Tenor Life Insurance
Protection Oriented, Longer Tenor Life Insurance PROPORTION OF Tenure Age of Insured PRODUCT TYPE POLICIES (%, by (Years) (Years) number) WHOLE LIFE 22 40 36 ENDOWMENT 17 26 26 TERM 4 25 36 DEFERRED 1 17 42 ANNUITY MONEY BACK 17 12 37 UNIT LINKED 39 20 35 24 34 As on Sep 30, 2007 MNYL Average MNYL A
Slide 29: Established Ourselves amongst the Leading Agency Sales Force
Established Ourselves amongst the Leading Agency Sales Force Adjusted Single premium New Business Apr – Sep 2007 Agents Premium per Agent* ($) Cases per Agent* (Agency) (US$ Mn) 336 2,56,000 219 0.44 334 2,50,000 223 0.67 106 1,25,000 141 0.31 96 1,25,000 129 0.29 96 Rank 5 25,802 617 Rank 1 1.17 Ra
Slide 30: Market Position – H1’07-08 Insurance Sales
Market Position – H1’07-08 Insurance Sales (US $ Mn) Individual New Business Individual Policies (‘000) Company Premium (Apr'07-Sep'07) (Apr'07-Sep'07) ICICI Prudential 550 1,099 Bajaj Allianz 515 1,544 HDFC Standard Life 192 420 SBI Life 163 253 Birla Sunlife 141 195 Max New York Life 123 6 323 4 R
Slide 31: Wide Reach Established
MNYL Footprint Punjab Wide Reach Established Chandigarh HO Dehradun Gurgaon Faridabad Jaipur Delhi Noida Jodhpur Meerut Dehradun Kota Udaipur Karnal Kanpur Siliguri Lucknow Mehsana Gwalior Guwhati Ahmedabad Varanasi Rajkot Baroda Bhopal Patna Bhavnagar Indore Jamshedpur Asansol Surat Nagpur Ranchi K
Slide 32: Max New York Life Insurance
Max New York Life Insurance * * Conservation Ratio = Renewal Premium for the current period/(First Year+Renewal Premium for the previous period) 32 US$ 1 = INR 39.50
Slide 33: Strengths and Growth Strategy
Strengths and Growth Strategy Strengths n One of India's leading private providers of life insurance with a well recognized brand name n Strong and extensive distribution channels with 175 field offices and over 28,500 exclusive sales agents n Partnership with 17 banks, current access covers 350+ br
Slide 34: Neeman Medical International
Neeman Medical International www.neeman-medical.com 34
Slide 35: Neeman Medical International Contract Research Organization (CRO)
Neeman Medical International Contract Research Organization (CRO) Business Overview Performance Summary n Service offerings include… n Confirmed order book of US$ 4 Mn and BD Project Management pipeline of US$ 7 million as of Sep 30, 2007 Site Management Data Management, includes Bio-Statistic
Slide 36: Neeman – Select List of Clients
Neeman – Select List of Clients 36
Slide 37: Other Businesses
Other Businesses www.maxhealthstaff.com 37
Slide 38: Max HealthStaff International
Max HealthStaff International Business Overview Performance Summary n Annuity based revenue model with cash inflows n 60 Nurses already placed in the US expected for periods upto 36 months for each placed candidate n Around 670 nurses in different stages of pipeline n 7 Sourcing and Training centers
Slide 39: Max Speciality Products
Max Speciality Products Business Overview Performance Summary n Manufacturer/Supplier of Niche (high margin) n MSP commissions second thermal coating line and High Barrier Speciality polymer films with a capacity of 144 Mn SqMtrs – to stabilize in a month n Long term relationship with Blue chip cust
Slide 40: Oct 2007
Oct 2007 40