Aster Dm Healthcare Ltd. · NSE:ASTERDM
Aster Dm Healthcare — Investor Presentation (June 2024)
47 slides from Aster Dm Healthcare's investor presentation, Jun 17, 2024
Slide 1: Investor Presentation cover letter to exchanges
June 17, 2024 The Secretary The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd 1st Floor, Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G Dalal Street, Mumbai 400001 Bandra Kurla Complex Scrip Code: 540975 Bandra (East), Mumbai 400051 Sc
Slide 2: Investor Presentation June 2024
Investor Presentation June 2024
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Aster DM Healthcare Limited (the "Company"), content of which was compiled from sources believed to be reliable for informational purposes only and are based on information regarding the Company and the economic, regulatory, market and other conditio
Slide 4: India's vast population and increasing healthcare expenditure
India’s vast population and increasing healthcare expenditure provides significant headroom for growth …drive consistently fast growth for healthcare One of the lowest hospital bed densities in the …coupled with very little spend on healthcare as % delivery in India, expected to be worth $100bn+ by
Slide 5: A leading healthcare provider in South India
A leading healthcare provider in South India Our Presence/Strength1 15 cities and 192 4,867 5 states Hospitals capacity beds 13 232 215 Clinics Labs and PECs Pharmacies3 Operational metrics (FY24) Karnataka & Maharashtra 68% 3.4 days INR 40,100+ Karnataka Hospital: 4, Beds: 1193 Occupancy ALOS ARPOB
Slide 6: From Clinic to a Healthcare Powerhouse: A Transformational Journey
From Clinic to a Healthcare Powerhouse: A Transformational Journey to a Thriving Hospital Network... 2024 Kerala Cluster Andhra Pradesh & Telangana Segregation of GCC and India 2023 Aster Whitefield Block A&B, Bengaluru 2022 Aster Medcity MIMS Calicut Aster Ramesh Guntur Kochi, Kerala | CB: 760 OB:
Slide 7: Created a dominant positioning in South India region
…created a dominant positioning in South India region 2nd largest network in South India with significant capacity Aster predominantly operates in the South Revenue Growth beds in southern states 1 Compared with listed peers in India (FY19-24) 2 5255 4867 23% 22% 4000 3975 Karnataka & Maharashtra Cl
Slide 8: Consciously built a de-risked business model across multiple specialties
Consciously built a de-risked business model with healthy presence across multiple specialties… Geographical Revenue Mix1 (FY24) Specialty-wise Revenue Mix (FY24) Andhra & Telangana 12% Multi Speciality, 18% Cardiac Sciences , 14% Kerala 57% OP Pharmacy, Neuro Sciences, 11% Karnataka & Anaestheolgy,
Slide 9: Sustained improvement in our India Business performance
Sustained improvement in our India Business performance over the past few years No. of Capacity Beds ARPOB (in 000s) 4,867 40.1 4,317 36.5 3,905 33.5 3,693 3,757 30.1 3,460 27.7 26.1 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 Revenues (INR Crs) Operating EBITDA1 (INR Cr) and Materia
Slide 10: Delivering robust performance across all key metrics over five years
…delivering robust performance across all key metrics over the last five years FY19 FY24 Revenue (5-year CAGR of 23%) INR 1,314 Crores INR 3,699 Crores ✓ Expanding EBITDA Margin(1,2) (5-year CAGR of 38%) 11% 20%(2) ✓ Improving ROCE(4) 2% 16.4% ✓ 19 hospitals, 13 Clinics ✓ 12 hospitals Growing Facili
Slide 11: Aster India FY24 performance: core hospital business and new businesses
For FY24, Aster India has delivered strong performance in its core hospital business while rapidly growing the new businesses (5) ( % of Revenue Revenue Operating EBITDA Hospitals and Clinics INR 3,519 Cr INR 688 Cr 92% 23% ~20% Core established business YoY Revenue Growth Margins 19 hospitals(1) 13
Slide 12: Core Business – Hospitals & Clinics
Core Business – Hospitals & Clinics
Slide 13: Core hospitals business: improvement across operational parameters
The core hospitals business has shown strong and consistent improvement across all operational parameters… Track record of consistent facility additions… …and increase in capacity beds… …leading to growing patient volumes… No. of Hospitals No. of Capacity Beds Total Patient Volumes (In Mn) 19 4,867
Slide 14: Robust financial performance trajectory of hospital business
…resulting in a robust financial performance trajectory over these years Hospital Revenue has grown at 22% CAGR over last 5 years… …helping expand Hospital EBITDA margin by 900 bps… (In INR Cr) Hospital Revenue (In INR Cr) Hospital EBITDA and Margin(1) 3,519 11% 13% 12% 17% 19% 20% Margin 2,851 688
Slide 15: Aster India - Maturity Wise Hospital Performance – FY24
14 Aster India - Maturity Wise Hospital Performance – FY24 Key Performance indicators Operational Revenue3,5 Operating Maturity Hospitals Beds Operating (INR in Cr.) ARPOBD Occupancy EBITDA3,5,7 ROCE8 (Census)6 EBITDA % (INR Cr.) Over 6 77% 72% 10 ₹2,683 2,541 ₹ 41,700 68% ₹ 600 22.4% 32% Years 3-6
Slide 16: Significant capital investments in brownfield and greenfield expansions
We have made significant capital investments in brownfield and greenfield expansions for enabling future growth performance… Significant capex incurred in last few years Capex (INR Cr) Investment Mix (FY24) O&M Projects Greenfield 3% 10% 392 282 Brownfield 87% 117 FY22 FY23 FY24 7 Hospitals 5 Clinic
Slide 17: Clear Capital Allocation Strategy for India Business going forward
16 Clear Capital Allocation Strategy for India Business going forward Addition of ~1700 beds, bringing the total bed capacity to 6,500+ by FY27 FY27 : 904 beds FY26 : 339 beds FY25 : 434 beds Aster Aster Aster Aster Aster Aster Aster Aster Aster FY24 Medcity* MIMS Whitefield Ramesh MIMS MIMS CMI** M
Slide 18: New Businesses – Labs & Pharmacy
New Businesses – Labs & Pharmacy
Slide 19: Stabilizing the healthcare ecosystem through labs and pharmacies
In addition, we are gradually stabilizing the healthcare ecosystem in India through labs, pharmacies etc (1) No. of Facilities Revenue Leveraging the ecosystem of our pharmacies (In INR Crs) and labs to benefit the hospital business Pharmacies* 286 Labs 462 447 217 205 232 245 126 Increased patient
Slide 20: Quality of Care
Quality of Care
Slide 21: Remarkable medical achievements
20 Our innovative approach towards medical procedures has delivered remarkable medical achievements… 35 510+ 1,140+ 2,350+ 3,310+ 5,220+ 6,640+ Total number of research Total number of Total number of Robotic Total Number of Total number of Total number of Total number of paper published in indexed
Slide 22: High patient satisfaction across our facilities
21 …resulting in high patient satisfaction across our facilities… Karnataka and Maharashtra Cluster Kerala Cluster Andhra and Telangana Cluster 21
Slide 23: Recognized for unmatched excellence
…recognized for unmatched excellence… SRV Accredited Endometriosis Medcare Women and JCI Children Hospital Accredited European Society of Aster Medcity Medical Aster Ramesh Guntur NABL Oncology Accredited recognized1 Aster Medcity, Aster MIMS Aster CMI Calicut, Aster MIMS Kannur, Aster Ramesh Vijaya
Slide 24: Awards – FY 2024
Awards – FY 2024 Outlook 2024 Best Hospital Ranking Times All India Multispecialty Hospital Ranking 2024 Best Multispecialty Hospital Emerging Aster Medcity : South Aster Medcity: All India Aster CMI : All India Aster Medcity: Best Multispeciality 1 Best Multispecialty 3 Best Multispecialty 6 All In
Slide 25: ESG Milestones
24 ESG Milestones 93% 85% 13 2,300,000 KWh 3,675,000 KWh 4300 E Energy Consumption sourced from renewable Energy Consumption sourced from renewable Sewage treatment plants installed across India Worth wind energy sourced Worth solar energy sourced Trees Planted energy at Aster CMI, energy at Aster R
Slide 26: Key Financials
Key Financials
Slide 27: Aster India Financial Summary - Profitability Statement
Aster India Financial Summary- Profitability Statement Particulars FY 2024 FY 2023 YoY % Ind AS Impact on EBITDA and PAT Revenue from Operations 3,699 2,983 24% Material Cost2 916 779 INDAS Impact FY 2024 FY 2023 Doctors Cost 816 647 EBITDA Impact (69) (54) Employee Cost 666 581 Depreciation 45.2 39
Slide 28: Aster India Financial Summary – Balance Sheet and Ratios
Aster India Financial Summary – Balance Sheet and Ratios 27 Particulars (INR Cr) As at Mar 31, 2024 As at Mar 31, 2023 LIABILITIES Shareholder’s Equity 500 500 Minority Interest 158 157 Other Reserves 897 719 Land Revaluation Reserve 460 460 Gross Debt 669 597 Lease Liabilities - INDAS116 714 533 Ot
Slide 29: Region-wise Business Snapshot - Kerala
Region-wise Business Snapshot- Kerala Revenue (In INR Crs) 2,007 Aster Mother 1,691 Hospital Aster MIMS Kannur 1,318 Aster MIMS Calicut 875 935 Aster MIMS Kottakal 701 Aster Medcity FY19 FY20 FY21 FY22 FY23 FY24 Aster PMF Operating EBITDA1 (In INR Crs) FY24 430 356 255 124 124 78 FY19 FY20 FY21 FY22
Slide 30: Region-wise Business Snapshot - Karnataka & Maharashtra
Region-wise Business Snapshot- Karnataka & Maharashtra Revenue 1100 (In INR Crs) 817 655 442 433 Aster Aadhar Hospital 310 Aster CMI Aster RV FY19 FY20 FY21 FY22 FY23 FY24 Hospital Aster Whitefield Aster Operating EBITDA1 G Madegowda FY24 (In INR Crs) 217 150 83 42 33 28 FY19 FY20 FY21 FY22 FY23 FY2
Slide 31: Region-wise Business Snapshot - Andhra & Telangana
Region-wise Business Snapshot- Andhra & Telangana Revenue (In INR Crs) 412 Aster Prime Hospitals 370 344 303 314 279 Ramesh Main Centre Ramesh Labbipet Ramesh (IB) Vijaywada Ramesh Guntur Ramesh Sanghamitra FY19 FY20 FY21 FY22 FY23 FY24 Aster Narayanadri Operating EBITDA1 (In INR Crs) FY24 69 47 45
Slide 32: Board & Leadership Team
Board & Leadership Team
Slide 33: Board of Directors
32 Board of Directors Shamsudheen Bin Mohideen Dr. Azad Moopen Alisha Moopen T. J. Wilson Mammu Haji Founder Chairman and Managing Director Deputy Managing Director Non-Executive Director Non-Executive Director Purana Housdurgamvijaya Chenayappillil John George James Mathew Emmanuel David Gootam Dee
Slide 34: Leadership Team
33 Leadership Team Dr. Azad Moopen Founder Chairman and Managing Director T. J. Wilson Dr. Nitish Shetty Dr .Somashekhar S P Sunil Kumar M R Group Head - Governance & CEO – Aster DM Healthcare Chairman of Medical Advisory Corporate Affairs Ltd., India Council and Global Director Chief Financial Offi
Slide 35: Shareholders of the India listed entity
Shareholders of the India listed entity Marquee domestic and foreign institutional investors are currently invested in Aster DM Healthcare Shareholding pattern Current Key Institutional Shareholders 0.4% 11% 14% 42% 33% Promoter FII DII Public Others As on 17th May 2024 34
Slide 36: Our strategic priorities towards driving future growth and improvement in profitability
Our strategic priorities towards driving future growth and improvement in profitability Capital Investment Substantial brownfield and greenfield investments in pipeline to drive occupancy rates across clusters Cost Improvement Initiatives To help improve EBITDA Margins Improving Specialty Mix Focusi
Slide 37: Appendix
Appendix
Slide 38: Successful Segregation of India and GCC business
Successful Segregation of India and GCC business Transaction Overview : ▪ Concluded the separation of its India and GCC businesses, pursuant to which Affinity Holdings Limited (a wholly subsidiary of the Company) received a cash consideration of USD 907.6 Mn. ▪ Under the separation plan, a consortiu
Slide 39: FY 2024 Performance Summary - Aster India
FY 2024 Performance Summary- Aster India Revenue Operating EBITDA1 PBT Adj. PAT2 PAT3 Financial (Post-NCI) (Post-NCI) FY24 : INR 3,699 cr FY24 : INR 620 cr FY24 : INR 281 cr FY24 : INR 240 cr FY24 : INR 188 cr 24% 30% 34% 63% 28% FY23 : INR 2,983 cr FY23 : INR 477 cr FY23 : INR 210 cr FY23 : INR 147
Slide 40: FY 2024 Performance Summary – Aster India
FY 2024 Performance Summary – Aster India ▪ Core hospital business delivered Operating EBITDA margin of ~20% in FY24. ▪ Matured hospital Op. EBITDA margins at 22.4% in FY24 (21.1% in FY23) and ROCE at 32.0% in FY24 (24.7% in FY23) ▪ International business grew by 44% yoy to INR 188 crore in FY24 v/s
Slide 41: Geography – wise Business – Snapshot – FY24
Geography – wise Business – Snapshot – FY24 40 KARNATAKA & ANDHRA & KERALA TOTAL MAHARASHTRA TELANGANA FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 Total Capacity Beds 2,396 2,236 1,424 1,034 1,047 1,047 4,867 4,317 Operational Beds (Census) 1,827 1,734 946 790 779 780 3,552 3,304 Operational Beds (Non-C
Slide 42: Asset Light O&M investments through Low Capex Models
Asset Light O&M investments through Low Capex Models to further improve our return profile 2022 Adding more beds through the O&M asset light model allows us to take Aster Mother Hospital healthcare to suburban areas at minimal cost Areekode, Kerala 140 capacity beds Year of Commencement of O&M Asset
Slide 43: Hospital and O&M Asset Light Hospitals Performance – FY24
Hospital and O&M Asset Light Hospitals Performance – FY24 Occupancy ARPOB Revenue Operating EBITDA2 ROCE Hospitals and Clinics (Excl. O&M Asset Light) INR 3,395 Cr INR 689 Cr 15 hospitals1 24.0% 69% 42,100 20% ~20% 13 clinics YoY Revenue Growth Margins 3,174 Operational Beds (census) O&M Asset Light
Slide 44: Aster India Hospital and other New Business Performance – Q4 FY24
Aster India Hospital and other New Business Performance – Q4 FY24 % of Revenue Revenue Operating EBITDA5 Hospitals and Clinics INR 930 Cr INR 184 Cr 93% 21% ~20% Core established business YoY Revenue Growth Margins 19 hospitals(1) 13 clinics 4,867 capacity beds Labs and Pharmacies INR 73 Cr INR (1)
Slide 45: Hospital and O&M Asset Light Hospitals Performance – Q4 FY24
Hospital and O&M Asset Light Hospitals Performance – Q4 FY24 Occupancy ARPOB Revenue Operating EBITDA2 Hospitals and Clinics (Excl. O&M Asset Light) INR 894 Cr INR 184 Cr 15 hospitals1 67% 45,000 19% ~21% 13 clinics YoY Revenue Growth Margins 3,174 Operational Beds (census) O&M Asset Light Hospitals
Slide 46: Geography – wise Business – Snapshot – Q4 FY24
Geography – wise Business – Snapshot – Q4 FY24 45 KARNATAKA & ANDHRA & KERALA TOTAL MAHARASHTRA TELANGANA Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Total Capacity Beds 2,396 2,236 1,424 1,034 1,047 1,047 4,867 4,317 Operational Beds (Census) 1,827 1,734 946 790 779 780 3,552 3,
Slide 47: Thank You
Thank You Investor Relations: investors@asterdmhealthcare.com
Aster DM Healthcare — Investor Presentation (June 2024) on 6ix