Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (June 2023)
48 slides from Apollo Hospitals Enterprise's investor presentation, June 2023
Slide 1: Apollo Hospitals Enterprise Limited Investor Presentation June 2023
Apollo Hospitals Enterprise Limited Investor Presentation June 2023 © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 1
Slide 2: Key Highlights
Key Highlights India’s Largest Clinical Attractive Engines Strong Prioritizing Annexure Integrated Pioneers Industry of Growth Financial & ESG Healthcare Opportunity Operational System Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 2
Slide 3: India's Largest Integrated Healthcare System
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Pioneers Opportunity of Growth Operational ESG Integrated Track Record Healthcare System © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 3
Slide 4: Transforming Healthcare delivery in India: Over 35 Years of legacy
Transforming Healthcare delivery In India : Over 35 Years of legacy Largest Hospital Largest Offline India’s Leading Retail 3rd Largest Private Chain in India Pharmacy in India Healthcare Network Health Insurer in India 71 hospitals 5,500+ stores in 1100+ cities and 350 primary clinics, 133 dental F
Slide 5: India's Largest Integrated Health System
India’s Largest Integrated Health 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; fosterin
Slide 6: Largest Pan-India Hospital Chain
Largest Pan-India Hospital Chain Hospitals 71 ; Beds 10,021 Capacity Operational Hospitals Beds beds Tamilnadu Region North AHEL* (a+b) 71 10,021 9,325 20 2508 11 1551 Owned 8,494 7,798 43 Sub & JVs AP & Telangana Western Managed 6 951 951 Hospitals 12 1552 10 1271 Eastern Karnataka Total (a) 49 9,4
Slide 7: Transforming Retail Health through access and convenience
Transforming Retail Health through access and convenience Apollo Health & Lifestyle Ltd (AHLL) Looking at the market through Two broad levers Out-of-Hospital care • Outpatient Clinics • Diagnostics and dialysis • Day Surgery centers • Single Specialty Facilities Organizing the unorganized • Patholog
Slide 8: Largest Omni-Channel Digital Health Offering
Largest Omni-Channel Digital Health Offering Apollo HealthCo Ltd (AHL) Apollo 247 –Digital Platform Apollo 247 –Digital Platform As at June 30, 2023 ~27Mn+ ~8.5 Lakh+ ~6,000+ Chandigarh Registrations Daily Active Users Doctors 4 Uttarakhand Himachal Pradesh 51 5 Assam Punjab 93 23 New Delhi Daily Co
Slide 9: Highlights Q1FY24
Highlights Q1FY24 Healthcare Services Diagnostics & Digital Health & (Hospitals) Retail Health Pharmacy Distribution 43 Owned + 6 Managed Hospitals 22 Ambulatory care & Birthing Centers 5,573 Outlets 9,445 Owned & Managed Beds 576 Beds ~16.02% Private label / Generic sales 62% Occupancy 2,012 Diagno
Slide 10: Clinical Pioneers
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Opportunity of Growth Operational ESG Healthcare System Pioneers Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 10
Slide 11: Clinical pioneers bringing in tectonic shifts in the healthcare industry
Clinical pioneers bringing in tectonic shifts in the healthcare industry Bringing in Latest Technologies First 20 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: World Class Outcomes driven by Systems and Protocols
World Class Outcomes driven by Systems and Protocols 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. Apollo Quality Program Apollo Clinical Excellence Multifaceted program measuring, c
Slide 14: Expertise driven by Academics & Research
Expertise driven by Academics & Research Campus Education Diplomate National Board Skilling & Upskilling Medvarsity AIMSR, Hyderabad 11 Nursing schools in India AIMSR, Chittoor 1 Nursing school Asia's Largest Healthcare Ed Tech The Apollo in Bhutan University, Chittoor 45 Specialties In partnership
Slide 15: Resulting in Higher Clinical Volumes
Resulting in Higher Clinical Volumes Pioneering in cutting edge treatment FY23 First First combined ~73,500+ 37,000+ 1,600+ liver transplant kidney & Liver transplant Cardiac Neuroscience Transplant2 Procedures1 Discharges First simultaneous First bilateral Minimally Kidney-Pancreas transplant Invas
Slide 16: Attractive Industry Opportunity
India’s Largest Clinical Attractive Engines Strong Financial & Prioritizing Annexure Integrated Pioneers of Growth Operational ESG Healthcare System Industry Track Record Opportunity © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 16
Slide 17: Hugely Under-Penetrated Market with Attractive Dynamics
Hugely Under-Penetrated Market with Attractive Dynamics Private sector players are well-positioned to leverage opportunity given low contribution of government spending Growing Indian Healthcare Delivery Industry Public healthcare expenditure low, with private sector accounting for bulk The healthca
Slide 18: Infrastructure lag provides strong growth tailwinds
Infrastructure lag provides strong growth tailwinds India lags other developed and emerging economies in healthcare infrastructure Global Median : ~29 Beds per10,000 people 71 43 29 26 25 21 21 19 14 Global Average : ~16 Physicians per 10,000 people 38 30 26 23 22 23 7.4 10 8 157 Global Average : ~4
Slide 19: Rapid Demand Growth Driven by Demographic Shifts
Rapid Demand Growth Driven by Demographic shifts, Changing consumption patterns, increasing affordability and favorable regulatory environment Non-communicable disease accounts for most number of deaths Population in 60+ age group to grow faster 11% 11% Communicable diseases 09% 10% 13% 60+ years 13
Slide 20: Heal in India: Global hub for medical and wellness tourism
“Heal in India” Global hub for medical and wellness tourism HEAL IN INDIA Initiative, aims to The medical Growth in medical tourism expected Treatments mostly sought after promote Medical tourism market primarily due to (i) Technologically in India are high end treatments Value Travel valued at adva
Slide 21: Increasing Digital Adoption will transform every sector including Healthcare
Increasing Digital Adoption will transform every sector including Healthcare Data driven revolution in the country has led to a generation of digitally inclined consumer By 2025, Digital Will Transform India’s Economy, Sector By Sector Robust internet subscribers' growth and Smartphone penetration..
Slide 22: Engines of Growth
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Pioneers Opportunity Operational ESG Healthcare System of Growth Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 22
Slide 23: Optimize Hospital Occupancy through Enhanced COE focus and Payor mix
Optimize Hospital Occupancy through Enhanced COE focus and Payor mix Mature Hospitals New Hospitals 29 5,735 14 2,759 Hospitals1 Capacity Beds Hospitals1 Capacity Beds 5,418 63% 2,380 60% Operational Beds Occupancy rate Operational Beds Occupancy rate Focus on Centers of Extend and expand our Set be
Slide 24: Focused on Diagnostics & Primary Care as the Next Growth Vector
Focused on Diagnostics & Primary Care as the Next Growth Vector Primary Care Diagnostics Specialty Care Focus on taking Healthcare Aim for Enhancing Market Share Sustained growth with synergies Closer to Communities and complete pan-India expansion to Apollo Ecosystem Network expansion via various f
Slide 25: HealthCo: Building Scale through Customer Centricity
HealthCo : Building Scale through Customer Centricity • Clinical Intelligence Engine (CIE) to empower doctors deliver better care and patients to access Monetizing PHR analytics on-demand care and CIE • Patient Health Records (PHR) to enable continuum of care; one of world’s largest PHR systems with
Slide 26: India's Largest Integrated Healthcare
India’s Largest Clinical Attractive Engines Strong Prioritizing Annexure Integrated Pioneers Industry of Growth Financial & ESG Healthcare Opportunity Operational System Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 26
Slide 27: Strong Growth in Revenues across Businesses
Strong Growth in Revenues across Businesses FY23 FY13-FY23 FY13-FY23 FY13-FY23 $2.02 billion 16% 14% 20% Consolidated Revenue1 CAGR (Consolidated Rev) CAGR (HCS incl AHLL) CAGR (Pharmacy)2 86,768 Healthcare services SAP Others 79,891 67,045 57,297 51,426 50,022 48,206 45,157 40,851 48,760 2 37,033 3
Slide 28: Aided by Strong Operating Metrics
…..Aided by Strong Operating Metrics In-patient Admissions (‘000) Bed Occupancy Rate(1) % 540 478 Operating Beds 451 460 399 428 354 374 352 4,257 4,767 5,153 5,549 5,811 6,321 6,724 6,940 7,111 7,246 7,491 7,409 7,875 7,860 313 332 265 281 235 73% 73% 71% 72% 71% 68% 63% 64% 66% 68% 67% 63% 64% 55%
Slide 29: Healthy Return on Capital Employed
….and Healthy Return on Capital Employed ROCE - Healthcare Services Offline Pharmacy Distribution excl 24|7 Operating cost Healthcare services excluding CWIP Health Co 46% SAP 39% 33% 33% 25% 25% 31% 20% 21% 17% 16% 15% 14% 14% 13% 11% 14% 14% 19% 10% 11% 15% 15% 6% 10% 9% 6% 7% 3% FY 09 FY 10 FY 11
Slide 30: Consolidated Financials Q1FY24
Consolidated Financials Q1FY24 (` mio) Digital Health Healthcare Diagnostics & ` Mio & Pharmacy Consol Services Retail Health Distribution Total Revenues 22,937 3,187 18,054 44,178 EBITDA (Pre 24|7 Cost) 5,423 233 1,473 7,129 margin (%) 23.6% 7.3% 8.2% 16.1% 24/7 Operating Cost -1,747 -1,747 ESOP(No
Slide 31: Consolidated Healthcare Services Performance Q1FY24
Consolidated Healthcare Services Performance Q1FY24 (` mio) Healthcare Serv Healthcare Serv Healthcare Serv ` Mio Group (New & HCS Revenue grew by 13% (Volume growth Group (Mature) Group Others) 6%, price and case mix of 7%) and EBITDA No of Hospitals 29 14 43 grew by 12% in Q1FY24. Operating beds 5
Slide 32: Region wise Operational Parameters
Region wise Operational Parameters Tamilnadu Region AP, Telengana Region (Hyderabad Total (6) (2) (Chennai & others) (1) & others) Particulars Q1 FY 23 Q1 FY 24 yoy (%) Q1 FY 23 Q1 FY 24 yoy (%) Q1 FY 23 Q1 FY 24 yoy (%) Q1FY24 ARPOB in Metro cities at No. of Operating beds 7,864 7,798 2,156 2,088 1
Slide 33: AHLL Financial Performance Q1FY24
AHLL Financial Performance Q1FY24 (` mio) Q1 FY24 Clinics Diagnostics Sugar Dental Dialysis Cradles (IP) IVF Spectra (IP) Network 350 2,012 65 133 119 10 17 11 Footfalls/Day* 2,258 14,106 472 223 1,850 46 39 72 Gross ARPP (Rs.)* 2,060 744 3,035 6,208 1,618 106,989 37,047 105,941 Q1 FY24 vs Q1 FY23 D
Slide 34: Diagnostics: Key Parameters
Diagnostics : Key Parameters Gross Revenue (₹ Mn)1 EBITDA (₹ Mn)2 Operational footprint (as of Jun 30, 2023) 1,040 1,031 1,075 940 16 816 118 15 24 14% 99 922 916 1,016 1,059 148 5% 7% ~260 717 5% 5% 75 Cities presence 39 51 50 in India Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23
Slide 35: Health Co Financials Q1FY24
Health Co Financials Q1FY24 Online Pharmacy Healthco : Offline Pharmacy Total Health ` Mio Distribution & Distribution Co o 22% growth in revenue in Q1’ FY24 vs Q1’ FY23 Apollo 247 o 20% reduction in losses in Q1’ FY24 (Rs 566 Mn) vs Q4’ FY23 (Rs 721 Mn) Total Revenues 16,001 2,053 18,054 majorly on
Slide 36: Prioritizing ESG
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Pioneers Opportunity of Growth Operational Healthcare System Track Record ESG © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 36
Slide 37: Our Approach to Governance
Our Approach to Governance Board Composition (11 Directors) Key Board Committees and Features Chair: Dr. Prathap C Reddy Nomination and Stakeholders CSR and Audit Committee Remuneration Sustainability Lead Independent Director: MBN Rao Committee Relationship Committee Committee Independence Gender 1
Slide 38: Governance of Sustainability
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 Enterprise Risk Management (ERM)
Slide 39: Impact on Key Stakeholders
Focusing on Material Topics Consumer Related Parameters Company Related Parameters Each stakeholder constituency is Our modes of engagement Major (3) Environment Related Parameters important and means something with our key stakeholders 1 2 different for us and we remain together with the materialit
Slide 40: Our Sustainability Commitments
Our Sustainability Commitments Our Targets Our Efforts In FY 22-23, 18% of our total energy consumption was from Sourcing 25% of electricity & energy from renewable energy, signalling our efforts on green transition. We are Renewable Energy renewables by FY 24-25 building additional solar PVs and si
Slide 41: Patient Centric Care
Patient Centric Care Patient and Customer Satisfaction Accessible Healthcare and Engaged Privacy and Cybersecurity with Underserved Communities Responsible Billing practices: High level of transparency from Admissions to Subsidized Patient Funding – Partnering with Information Security Management Sy
Slide 42: Employer of Choice
Employer of Choice Our people are our most valuable resource, and we are committed to their welfare, health and wellness A shortage of skilled and trained clinical, nursing, and allied workforce remains a challenge. However, through our training and educational institutions like Nursing schools and
Slide 43: Caring for the Environment
Caring for the Environment Focus Areas Water Energy Waste Management Fighting water scarcity by being efficient. Third 20% reduction in energy in our Bio Waste, Biomedical Waste, party water audits are carried out to promote 18 largest hospitals usage Hazardous Waste, and Plastic Waste water conserv
Slide 44: Looking Forward
Looking Forward……. We believe our journey to become We published our 3rd a sustainable healthcare provider is Sustainability Report through continuous improvement. Sustainability is a strategic and the Business imperative for us - not a checklist Responsibility and exercise. We believe that this wil
Slide 45: Annexure
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Pioneers Opportunity of Growth Operational ESG Healthcare System Track Record © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 45
Slide 46: Basis of Consolidation
Basis of Consolidation Subsidiaries Location Description AHEL Ownership AHEL Standalone Hospitals (100% Ownership) Location Material Subs Chennai Main Chennai Apollo Health Co limited India Digital Omni-Channel Healthcare services 100.00% ACI - Chennai Chennai Apollo Health and Lifestyle Ltd. India
Slide 47: IND AS 116: Impact on P&L and Balance Sheet – Q1FY24
IND AS - 116 : Impact on P&L and Balance Sheet – Q1FY24 AHEL Standalone (post IND AS 116) AHEL Consolidated (post IND AS 116) Balance Sheet Profit & Loss Balance Sheet Profit & Loss Revenue Revenue Right of use 5,531 Asset as of Other expenses 12,365 Right of use Asset as of 30 June, 2023 th Other e
Slide 48: Thank You
Apollo Hospitals Enterprise Limited THANK YOU © 2023 Apollo Hospitals Enterprise Ltd, All Rights Reserved 48
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