Max Financial Services Limited · NSE:MFSL
Max Financial Services — Max India — Investor Presentation (November 2006)
48 slides from Max Financial Services's investor presentation, November 2006
Slide 1: Max India Limited Investor Presentation
Max India Limited Investor Presentation Disclaimer This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors listed in th
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 also maintains interests in Speciality Plastic Products for the packa
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: Track record of successful international business partnerships
Track record of successful international Business Partnerships…over last 20 years Pharmaceuticals Gist Brocades, The Netherlands Electronic Motorola, USA Component Distribution Avnet Inc, USA Hutchison Telecommunication Ltd, Mobile Telephony Hutchison Hong Kong Communication COMSAT Comsat Investment
Slide 5: Max India – Key Financial Indicators (FY 05–06)
Max India – Key Financial Indicators (FY 05 – 06) z Consolidated revenue at $342 Million Revenue − Life Insurance revenue at $189 Million Up 96%. − Healthcare revenue at $31 Million Up 195%. z Consolidated cash generated from operations at $57 Million Profitability Up 395%. Investments z Group Asset
Slide 6: Max India – Balance Sheet
Max India – Balance Sheet* Sources of Funds US$ Million Reserves – 215 Application of Funds Share Capital – 8 Loan Funds – 42 Business Investments – 152 Fixed Assets – 18 Net Current Assets – 10 Cash and Liquid Investments – 85 *As at September 30, 2006 6
Slide 7: 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 * 222 100 164 Healthcare # 156 34 60 Current stake of Max India * Life Insurance – 74% # Healthcare – 70% 7
Slide 8: Max India – Shareholding Pattern
Max India – Shareholding Pattern Number of Outstanding Shares as on September 30, 2006 – 35,978,895 Promoter Group – Analjit Singh 41% FDI – Warburg Pincus Others 17% 17% FII – Warburg Pincus FII – Others 11% 14% 8
Slide 9: Max India – Board of Directors
Max India – Board of Directors Mr. Analjit Singh – Chairman Dr. S.S. Baijal Mr. N.C. Singhal Mr. Ashwani Windlass Mr. Bharat Sahgal Mr. N. Rangachary Mr. Piyush Mankad Mr. Rajesh Khanna – Warburg Pincus Mr. Nitin Sibal – Warburg Pincus Mr. B. Anantharaman – Joint Managing Director 9
Slide 10: Max Healthcare
Max Healthcare www.maxhealthcare.in 10
Slide 11: Max Healthcare Model
Max Healthcare Model • Heart and Vascular • Neurosciences • Heart & Vascular Institute • Joint Replacement & Tertiary Orthopaedics • Super Speciality Hospital • Obstetrics and Gynaecology • Paediatrics • Surgery and inpatient facilities • Hospitals – 4 • High-end Diagnostics: Secondary MRI, CT • Spe
Slide 12: 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 13: 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. Mukesh Shivdasani Dr. Narottam Puri Mr. KK Mathur Dr. RP Soonawala Dr. Pervez Ahmed Mr. Aman Mehta Mr. Anuroop Tony Singh Mr. Rajesh Kh
Slide 14: Indian Healthcare
Indian Healthcare Indian Healthcare Industry: • Indian healthcare industry – Currently estimated at about $33 Billion. – Growing at 12% to 15% per annum. – Expected to be over $65 – 70 Billion by 2012, mainly driven by private sector investments. • Over 1 Billion people, spread across different econ
Slide 15: Advantage India
Advantage India Core Competencies “International Class Treatment at Domestic Costs” Quality Huge resource of highly trained doctors, nurses and paramedics Comfort Level Doctors of Indian origin recognized as amongst best in USA and UK English Language Value Proposition Lower drug costs Quality medic
Slide 16: Current Facilities
Caring for you... for life Current Facilities
Slide 17: Current Facilities – Max Heart and Vascular Institute, Saket
Current Facilities MAX HEART AND VASCULAR INSTITUTE – SAKET [South Delhi] • 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 Uni
Slide 18: Current Facilities – Max Super Speciality Hospital, Saket
Current Facilities MAX SUPER SPECIALITY HOSPITAL – SAKET [South Delhi] • 225 beds (including 70 critical care beds) • To include: • 7 OTs, 20 Consult Chambers • Tower Specialties – Orthopaedics, Neuro Sciences, Obstetrics & Gynaecology and Paediatrics • Brain Suite (first in Asia) and intra operativ
Slide 19: Current Facilities – Secondary Care
Current Facilities Secondary Care Max Hospitals operational at: PITAMPURA NOIDA PATPARGANJ (February 2002) (August 2002) (May 2005) (North Delhi) (Suburb) (East Delhi) •100 inpatient beds •40 inpatient beds •145 inpatient beds •2+1 OT •2+1 OT •2+1 OT •Full range diagnostics •Full range diagnostics •
Slide 20: Current Facilities – Speciality Centres, Panchsheel
Current Facilities SPECIALITY CENTRES – PANCHSHEEL [South Delhi] OPTHALMOLOGY AND DENTAL CARE SPECIALIST CONSULTS & (November 2005) HIGH-END DIAGNOSTICS (August 2006) • Lasik, OPD and Diagnostics • Dental – 3 chambers, OPG and Lab •OPD Consults • Support Services and Offices (N & S) •Full Diagnostic
Slide 21: Current Status
Current Status ¾ Healthy Occupancy and capacity utilization catching up fast at all the healthcare facilities. • Average occupancy* across all hospitals at 58% for Sep’06 quarter… – Max Heart & Vascular Institute, Saket – 51% (Facility launched in Jan’05) – Max Super Speciality Hospital, Saket – 42%
Slide 22: Upcoming Facilities
Caring for you... for life Upcoming Facilities
Slide 23: Upcoming Facilities
Upcoming Facilities ¾ Max Hospital – Gurgaon • 100 bed Hospital with 2 OTs • Tower Specialties to include: • Obstetrics & Gynaecology and Paediatrics • Ophthalmology (Anterior and Posterior) • Orthopaedics • Nephrology and Urology • Plastic and Reconstructive Surgeries • General and Minimally Invasi
Slide 24: 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 Ph
Slide 25: Max Healthcare – Outlook
Max Healthcare – Outlook Revenue* 106.1 97.0 86.0 US $ Million 64.8 29.0 10.7 0 0 FY 05 FY 06 FY 07 FY 08 FY 09 FY 11 Cash break-even by FY 08 *Phase-1 roll-out. 25
Slide 26: Max Healthcare Project Cost and Funding
Max Healthcare Project Cost and Funding Phase – 1 z Max India – Promoters Equity - Current – $34 Mn - Future – $26 Mn z Warburg Pincus – $31 Mn US$ 95 million z Other Foreign Investors – $4 Mn Project Cost US$ 156 million Debt z HDFC – $23 Mn z Other Indian Banks and Financial Institutions – $38 Mn
Slide 27: Max New York Life Insurance
Max New York Life Insurance www.maxnewyorklife.com 27
Slide 28: Max New York Life Insurance [MNYL]
Max New York Life Insurance [ MNYL] ¾ Joint Venture between Max India and New York Life International [ NYL ] ¾ NYL, one of Fortune 100 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
Slide 29: 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 • Customer centric Companies • Financially responsible and strong •
Slide 30: 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. Joseph Gilmour Mr. Fred Sievert Mr. Anuroop Tony Singh Mr. Ravi Akhoury Mr. Gary R. Bennett Chief Executive Officer & Managing Dir
Slide 31: Indian Life Insurance Industry – An Opportunity
Indian Life Insurance Industry An Opportunity Strong Growth to be driven by… Life insurance premium as % of GDP 11.2 8.9 8.3 8.6 7.1 7.3 ¾ Low Penetration Level 6.0 4.1 3.5 3.6 3.1 2.5 1.8 2.0 ¾ Increasing Per Capita Income 1.3 United States South Korea Hong Kong Thailand Singapore Germany Malaysia
Slide 32: 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 (Average Age – 30) ¾ Unit Link contributes over 65% of total sales of the Company for the period Apr’06 – Sep’06 ¾ Ranks 3rd amongst private play
Slide 33: MNYL's Strategy to build a Strong Life Insurance Business
MNYL’S Strategy to build a Strong Life Insurance Business 4) Among the top private Indian life insurers with paid up capital base of $137 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 scorecar
Slide 34: 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) 37 36 WHOLE LIFE 26 ENDOWMENT 19 33 25 TERM 3 22 37 DEFERRED 17 42 ANNUITY 1 MONEY BACK 25 17 24 UNIT LINKED 26 23 35 27 31 As on Sep 30, 2006 MNYL Average MNYL A
Slide 35: Market Position – 2006-07 Insurance Sales
Market Position – 2006-07 Insurance Sales (US $ Mn) Individual New Business Policies (‘000) Company Premium (Apr'06-Sep'06) (Apr'06-Sep'06) ICICI Prudential 307 658 Bajaj Allianz 182 491 HDFC Standard Life 97 162 SBI Life 78 174 Max New York Life 69 5 236 3 Aviva 61 117 Birla Sunlife 58 105 Tata AIG
Slide 36: Established Ourselves amongst the Leading Agency Sales Force
Established Ourselves amongst the Leading Agency Sales Force Source: IRDA Journal, media reports and team inputs 36
Slide 37: Wide Reach Established
MNYL Footprint 31 Offices Dedicated to Rural Business Punjab Wide Reach Established Chandigarh HO Dehradun Gurgaon Faridabad Jaipur Delhi Noida Jodhpur Meerut Udaipur Lucknow Bhopal Ahmedabad Indore Baroda JamshedpurKolkata Rajkot Nagpur Surat Actual customer Aurangabad Mumbai Nasik Bhubaneswar base
Slide 38: Max New York Life Insurance
Max New York Life Insurance 38
Slide 39: Neeman Medical International
Neeman Medical International www.neeman-medical.com 39
Slide 40: Neeman Medical International – Contract Research Organization
Neeman Medical International Contract Research Organization (CRO) 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 Clini
Slide 41: Neeman Medical International – Business Highlights
Neeman Medical International Business Highlights ¾ 6 out of top 10 pharma companies are Neeman’s customers. ¾ Preferred provider relationship with 3 Pharma majors. – Discussions underway with some more pharma majors for making Neeman a preferred service provider. ¾ Alliances with CROs in Europe for
Slide 42: Neeman – Select List of Partners
Neeman – Select List of Partners 42
Slide 43: Max HealthStaff International
Max HealthStaff International www.maxhealthstaff.com 43
Slide 44: Max HealthStaff International
Max HealthStaff International Max HealthStaff International Limited is an international healthcare staffing company, founded on world-class quality and service excellence. It is committed to becoming India's leading healthcare staffing company, offering professionals to healthcare institutions in In
Slide 45: Max HealthStaff International
Max HealthStaff International ¾ First of its kind large scale corporate business initiative in India for providing end to end placement solutions. Has begun placement of nursing staff, will soon expand into other allied healthcare resources. ¾ Annuity based revenue model with cash inflows expected f
Slide 46: Max Speciality Products
Max Speciality Products 46
Slide 47: Max Speciality Products
Max Speciality Products Manufacturer / Supplier of Niche (high contribution) and High Barrier Speciality polymer films. Capture value by producing Value Added products. Long term relationship with Blue chip customers in FMCG sector. Pioneer in introduction of new products / technology in India
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