Max Financial Services Limited · NSE:MFSL
Max Financial Services — Max India — Investor Presentation (August 2014)
58 slides from Max Financial Services's investor presentation, August 2014
Slide 1: Max India Limited Investor Presentation
Max India Limited Investor Presentation August, 2014 www.maxindia.com BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:IN 1
Slide 2: Max Group - Overview
MAX GROUP - OVERVIEW www.maxindia.com 2
Slide 3: Max Group Vision
Max Group Vision “To be the most admired corporate for service excellence” • Positive social impact • Culture of Service Sevabhav • Helpfulness • Mindfulness • Expertise • Entrepreneurship Excellence • Dependability • Business performance • Transparency • Respect Credibility • Integrity • Governance
Slide 4: Our Businesses
Our Businesses Multi-business corporate Focused on people and service “ IN THE BUSINESS OF LIFE ” Life Insurance Healthcare Health Insurance Senior Living Protecting Life Caring for Life Enhancing Life 100% Owned; 74:26 JV* with Mitsui 50:50 JV^ with Life 74:26 JV with BUPA Continuing Care Sumitomo;
Slide 5: A unique investment opportunity and a resilient business model
A unique investment opportunity and a resilient business model 1 INR 116 billion+ Revenues*.. 5 Mn+ Customers..15,000 Employees.. 56,000^ Agents.. 2,000+ Doctors 2 Strong growth trajectory even in challenging times; a resilient & diversified business model 3 Steady revenue growth and cost rationaliz
Slide 6: High pedigree investor base
Growth potential recognized by the market…. high pedigree investor base Shareholding Pattern as on June 30, 2014 Others 8.2% Mutual • Reliance MF Funds • Temasek 11.3% Shareholding • Fidelity Promoter Concentrated • Norges 40.5% with Marquee • New York Life • Jupiter Investors • Matthews FII (Others
Slide 7: Consistent track record of strong growth across businesses
Consistent track record of strong growth across businesses with the group turning strong profits Rs Cr. Rs Cr. Operating Revenue Trend 10000 FY 10 FY 11 FY 12 FY 13 FY 14 8000 Operating 5,574 6,668 7,648 8,180 9,139 Revenue 6000 Investment and 2,087 1,223 914 2,444 2,544 8180 Other Income 4000 7643
Slide 8: Max Life Insurance Company (Max Life)
MAX LIFE INSURANCE COMPANY (Max Life) www.maxnewyorklife.com 8
Slide 9: The Essence of our chosen Strategy
The Essence of our chosen Strategy Our objective To be the most admired life insurance Sources of competitive advantage company in India with sharp focus on financial metrics ”Build a robust multi- channel distribution Our approach To serve the long-term savings and architecture while Max Life’s pro
Slide 10: Product disruptions have shifted product mix for top private players
Product Disruptions has led to significant shifts in product mix for majority of the top private players FY - 2013 FY - 2014 Par Non Par ULIP ICICI 5% 40% 55% 18% 16% 66% Prudential HDFC Life 36% 3% 61% 36% 15% 49% SBI Life 28% 30% 42% 36% 23% 41% Max Life 76% 15% 9% 67% 12% 21% Bajaj Allianz 68% 3%
Slide 11: Max Life performs better than private industry on agency efficiency
Max Life continues to perform better than the private industry on agency efficiency parameters Average Branch Productivity Max Life’s Max Life continued to lead In Rs. Lakhs per month Performance productivity parameters (both agent productivity and branch productivity) 21.7 20.6 18.8 FY'13 FY'14 17.
Slide 12: Max Life well positioned for the transformation
Max Life well positioned for the transformation Agency base at 45,000 agents Highly productive agency FY 14 Average case size at ~Rs. 29,000 with average case rate ~0.41 model and best in class training Need based insurance sales 400+ trainers on board Comprehensive product Product mix for
Slide 13: Track record of strong performance
Track record of strong performance New Business Growth – Adjusted FYP 1 and Renewal premium and conservation ratio 2 AUM 1800 30000 6000 90% 1724 1769 1750 25000 5000 1700 20458 82% 83% 81% 81% 78% 80% 24716 1650 17215 20000 4000 1595 1584 1600 13836 15000 3000 60% 1550 10,121 1506 1513 1500 10000 2
Slide 14: Max Healthcare (MHC)
MAX HEALTHCARE (MHC) www.maxhealthcare.in 14
Slide 15: Indian healthcare industry poised for exponential growth
Indian healthcare industry poised for exponential growth KEY HIGHLIGHTS • Indian Health Industry is poised to double to USD 125 bn by 2015E, driven by a combination of ageing population, growing lifestyle diseases and medical insurance penetration as well as increasing ability to afford quality heal
Slide 16: Increasing prevalence and propensity are key market drivers
Increasing prevalence and propensity are key market drivers Growing Health Insurance Market... Comparative medical cost 120 India UK US 100 100 80 65 (USD ’000s) Rs billion 60 48 111 84 32 40 24 66 18 19.2 51 8.5 9.8 20 32 7 4.5 6.4 14 17 22 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Open Heart Knee
Slide 17: MHC well positioned to deliver high quality of care
MHC, with its unique model* is well positioned to deliver high quality of care to patients Quaternary /Tertiary Care - Max Super Speciality Hospitals – Saket •Organ Transplant - Max Super Speciality Hospital – Patparganj •Neurosciences - Max Super Speciality Hospital – Mohali •Oncology •Cardiac Care
Slide 18: Extensive focus on service excellence
Extensive focus on service excellence – a key strength for MHC Comprehensive and integrated healthcare services • Complete service profile, cutting edge technology and state of the art infrastructure • North India centric strategy allows leveraging of medical capabilities Well established brand name
Slide 19: MHC delivering superior performance across all key metrics
MHC delivering superior performance across all key metric Revenue and Contribution Margin Avg. operational beds and Avg. revenue per 1500 65.0% occupied bed day* 1350 1600 30000 1200 63.0% 23585 25126 1400 26208 1050 61.2% 25000 1200 20431 21558 61.7% 61.0% 19433 900 20000 59.6% 1000 750 59.2% 600 5
Slide 20: Max Bupa Health Insurance (Max Bupa)
MAX BUPA HEALTH INSURANCE (Max Bupa) www.maxbupa.in 20
Slide 21: A symbiotic partnership in the health insurance space
A symbiotic partnership in the health insurance space • India’s leading conglomerate • Global Health Insurance provider • Successful track record of with market leadership in UK, building businesses Spain & Australia • Expertise in life insurance, • 12 million customers in over 190 health insurance
Slide 22: Industry is poised for exponential growth
Industry is poised for an exponential growth Key drivers of growth Indian Health Insurance Market (Rs. In Billion) 464 ▪ Increase in affordability 500 GWP (Rs. in Billion) 450 404 351 – Increasing affordability with rise 400 350 266 305 231 in income levels and healthcare 300 192 250 160 spend per c
Slide 23: Max Bupa to capitalise on this opportunity
Max Bupa to capitalise on this opportunity through innovative product and superior service offering Relationship Manager for Simplicity, Gold & Platinum Good Transparency: Hospitalization Hassle free claim Customers experience: Technology & Comprehensive processing; No Cashless processing; automatio
Slide 24: Key growth levers to maximize long-term value
Extensive focus on key growth levers to maximize long-term value Leveraging Max India and BUPA capabilities • Max India - strong understanding of Indian Insurance landscape, Factsheet* – Max Bupa learning's from Max Life’s success and leverage synergies with Max Life and MHC • BUPA – Product design,
Slide 25: Max Speciality Films (MSF)
MAX SPECIALITY FILMS (MSF) www.maxspecialityfilms.com 25
Slide 26: MSF uniquely positioned to create value
MSF uniquely positioned to create value Speciality Metallised Commodity Coated Films Foils (Preferred) Films End Use Packaging, Packaging, Packaging, Packaging, Lifestyle, Industrial, Lamination, Lamination Industrial Apparels Textiles Industrial, Our Focus Max Speciality Films is much more than pac
Slide 27: Visibility in Top Brands
Visibility in Top Brands You will Find MSF films in… 27
Slide 28: Max Neeman Medical International (MNMI)
MAX NEEMAN MEDICAL INTERNATIONAL (MNMI) www.neeman-medical.com 28
Slide 29: MNMI: A comprehensive service offering
MNMI: A comprehensive service offering • Full service contract research organization (CRO) with focus on Phase II, III & IV trails • Service offerings include: Project management, Site management, Data management, including, bio- statistics and report writing, monitoring services and supply chain ma
Slide 30: Max India Foundation (MIF)
MAX INDIA FOUNDATION (MIF) www.maxindiafoundation.org 30
Slide 31: Max India Foundation: Making a difference to life
MAX INDIA FOUNDATION Making a difference… to life Max India Foundation • Corporate Social Responsibility (CSR) Arm of the Max Factsheet* – MIF India Group focused on providing quality healthcare to the underprivileged, facilitating awareness of health Locations 428 related issues, and promoting and
Slide 32: Thank You
SMAx Thank You
Slide 33: Consolidated Financial Snapshot (Q1FY15)
Consolidated Financial Snapshot (Q1FY15) (Rs. Cr.) Particulars Quarter ended Y-o-Y Jun-14 Jun-13 Growth Total Revenue 3,686 2,333 58% Operating Revenue 1,974 1,722 15% EBITDA 142 97 48% PBT 77 42 85% Particulars 30-Jun-14 31-Mar-14 Growth Net Worth 3,013 2,984 1% Preference Shares 65 65 - Loan Funds
Slide 34: Road Map to Becoming India's Most Admired Life Insurance Company
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 Customer centric Part of top quartile new Life Insurance Companies Financially responsible and strong Nati
Slide 35: Market Position Insurance Sales
Market Position Insurance Sales Individual New Business Premium (Rs. Cr) Rank Company Premium Adjusted for 10% single premium Private Market Apr’14-Jun’14 Apr’13-Jun’13 Growth (%) Share 1 ICICI Prudential 607 448 36% 20.9% 2 HDFC Life 453 317 43% 15.6% 3 Max Life 357 294 22% 12.3% 4 SBI Life 332 286
Slide 36: Protection Oriented, Longer Tenor Life Insurance
Protection Oriented, Longer Tenor Life Insurance PRODUCT TYPE PROPORTION OF Tenure Age of Insured POLICIES (%, by (Years) (Years) number) WHOLE LIFE 17.5 44 32 ENDOWMENT 16 34 36.2 TERM 1.7 26 35 DEFERRED 0.1 ANNUITY 17 40 MONEY BACK 6.3 15 30 UNIT LINKED 36.1 15 36 HEALTH 0.5 14 39 GUARANTEED 1.6 1
Slide 37: Max Life - Embedded Value
Max Life – Embedded Value Amount in Rs. Cr. March 31, 2014 379* 34 79 309 Operating Variance* Non 240 Recurring 3,953 Variance Unwind of 3,756 Discount** SH dividend Value of New payouts Business 2,021 1,858 Implied NBM*** is Operating RoEV of 15.6% 13.4% on APE**** Headline RoEV of 13.5% (14% in 20
Slide 38: Max Life - Key Assumptions to Embedded Value
Max Life – Key Assumptions to Embedded Value Economic Assumptions Cash/Money Market/TB 8.5% G Secs 8.8% Corporate Bonds 9.6% Equities 13.00% Unit Linked Fund Growth Rate 10.50% Interest Rate on Non-Unit Reserves 8.15% Inflation 6.50% Risk Discount Rate 13.00% Service Tax 12.36% 14.1625% (12.5% + 10%
Slide 39: Max Life - Sensitivities to Embedded Value
Max Life – Sensitivities to Embedded Value Value of New Base Case (% change*) Value of In force Business Mortality +10% -2.20% -5.20% Mortality -10% 2.20% 5.20% Lapses +10% -3.90% -6.50% Lapses -10% 4.20% 7.20% Maintenance Expenses +10% -1.10% -1.80% Maintenance Expenses -10% 1.10% 1.80% RDR +100bps
Slide 40: Max Life Embedded Value - Basis of Preparation
Max Life Embedded Value – Basis of Preparation Max Life’s Embedded Value is guided by the European Embedded Value (EEV) principles and is consistent with the reporting of traditional embedded values on a deterministic basis Allowance for risk has been made through the use of a single risk discount r
Slide 41: Max Life Insurance
Max Life Insurance Quarter Ended Key Business Drivers Unit Y-o-Y Jun-14 Jun-13 Growth a) Gross written premium income Rs. Crore First year premium 355 302 18% Renewal premium 990 941 5% Single premium 113 82 38% Total 1,458 1,325 10% b) Shareholder Profit (Pre Tax) Rs. Crore 118 112 5% c) Expense to
Slide 42: Track record of strong performance
Track record of strong performance New Business Growth – Adjusted FYP 1 and Renewal premium and conservation ratio 2 AUM 1800 30000 6000 90% 1724 1769 1750 25000 5000 1700 20458 82% 83% 81% 81% 78% 80% 24716 1650 17215 20000 4000 1595 1584 1600 13836 15000 3000 60% 1550 10,121 1506 1513 1500 10000 2
Slide 43: Accreditations and Awards
Accreditations and Awards Business ASQ ITEA Bronze award; CII Commendation for Business Excellence (2008, 2009 & 2010) Excellence CII 2nd Prize in Project of the Year and Quality Global Finance – Best Life Insurance Company, India 2014 Brand Excellence Award and recognition as Superbrand (2010-11,20
Slide 44: MHC - Vision / Mission
MHC – Vision / Mission Key Differentiators PASSION Build Trust Focused NCR centric delivery – for operational excellence Deliver international class healthcare with a total service focus, by creating an Leadership in 5 super-specialties in tertiary care VISION institution committed to the highes
Slide 45: MHC - Key Physicians
MHC – Key Physicians Padma Shri Dr. Rustom Phiroze Soonawala Eminent and Internationally renowned Obstetrician & Gynaecologist. MD, FRCS, FRCOG Former President of the Federation of Obstetricians and Gynaecologists Chairman, Obstetrics & Gynaecology Padma Shri Dr. Pradeep K Chowbey Prior to join
Slide 46: MHC - Accreditations and Awards
MHC – Accreditations and Awards NABH / NABL Accreditation ISO 14001:2004 & 18001:2007 at Patparganj , Pitampura & Shalimar Bagh ISO 9001:2008 at Max Heart & Vascular Institute, Patparganj, Noida, Pitampura, Shalimar Bagh, Panchsheel Park & Home Office. National Standards: Mark of Excellence : 636 as
Slide 47: MHC Tertiary Care Facility, Saket
MHC Tertiary Care Facility, Saket [South Delhi] MAX DEVKI DEVI HEART & VASCULAR MAX SUPER SPECIALITY HOSPITAL INSTITUTE (West) (East & South) (May 2006) ( East :- December 2004, South :- February 2010) 184 beds (including 71 critical care beds) Patient beds – (East ; 207 beds) & (South ; 83 beds
Slide 48: MHC Tertiary Care Facility, Patparganj
MHC Tertiary Care Facility, Patparganj [East Delhi] PATPARGANJ BALAJI HOSPITAL (PPG I ) PATPARGANJ SUPER SPECIALITY HOSPITAL (PPG II) (May 2005) (Feb 2010) 154 inpatient beds 259 inpatient beds 3 OTs 7 OTs, 1 Cardiac Catheterization Labs General Surgery & MAS Invasive & Non Invasive Card
Slide 49: MHC Tertiary Care Facility [North India]
MHC Tertiary Care Facility [ North India] Mohali Bhatinda (September 2011) (September 2011) 142 inpatient beds and 45 Critical Care Beds 141 inpatient beds and 42 Critical Care Beds 5 OTs 5 OTs Oncology Oncology Cardiac Sciences Cardiac Sciences Orthopedics Orthopedics Neurosci
Slide 50: MHC Tertiary Care Facility [North India]
MHC Tertiary Care Facility [ North India] Dehradun Shalimar Bagh (May 2012) (November 2011) 166 inpatient beds and 39 Critical Care 196 inpatient beds and 80 Critical Care 4OTs 7 OTs Neurosciences Cardiology , Cathlab and Oncology Cardiac Care Orthopedics and Neuroscience Orthopedi
Slide 51: MHC Secondary Care Facility [Suburb of Delhi]
MHC Secondary Care Facility [ Suburb of Delhi ] GURGAON (July 2007) PITAMPURA (February 2002) NOIDA (August 2002) (North Delhi) 80 inpatient beds 90 inpatient beds 32 inpatient beds 3 OTs 2 OTs Orthopedics & Trauma 2 OTs Ophthalmology (anterior and posterior) Lithotripsy Mother a
Slide 52: MHC Speciality Centres - Panchsheel
MHC Speciality Centres – Panchsheel [South Delhi] OPTHALMOLOGY AND DENTAL CARE SPECIALIST CONSULTS AND (November 2005) HIGH-END DIAGNOSTICS (August 2006) Lasik, OPD and diagnostics Dental – 5 chambers GP and specialist consults Diagnostics Support services and offices Neurology (EEG and
Slide 53: Max Healthcare - Financials
Max Healthcare* – Financials Quarter Ended Key Business Drivers Unit Y-o-Y Jun-14 Jun-13 Growth a) Revenue (Gross) Rs. Crore Inpatient Revenue 311 234 33% Day Care Revenue 14 11 29% Outpatient Revenue 91 71 28% Other Operating Income - 3 - Total 416 319 31% b) Profitability Contribution (%) % 61.8%
Slide 54: MHC - Investment Pattern
MHC –Investment Pattern Max India – Rs. 360 Cr Equity Life healthcare** – Rs. 428 Cr Capital IFC, Washington – Rs. 50 Cr Other Foreign Investors – Rs. 20 Cr Rs. 865 Crore ESOPs – Rs. 6 Cr Preference Capital IFC, Washington – Rs. 125Cr Project Cost* Rs. 125 Crore Rs. 1,756 Crore Indian
Slide 55: Max Bupa Health Insurance
Max Bupa Health Insurance Quarter Ended Key Business Drivers Unit Y-o-Y Jun-14 Jun-13 Growth a) Gross written premium income Rs. Crore First year premium 29 32 (10%) Renewal premium 44 28 60% Total 73 60 23% b) Net Earned Premium Rs. Crore 74 48 55% c) Net Profit / Loss Before Tax Rs. Crore (26) (31
Slide 56: Max Specialty Films
Max Specialty Films Key Business Drivers Unit Quarter Ended Y-o-Y Jun-14 Jun-13 Growth a) Sales Quantity – BOPP Tons 11,334 11,222 2% b) Revenue Rs. Cr. 190 159 20% c) Profitability: Contribution Margin Rs. Cr. 34 26 34% % 18% 16% EBITDA Rs. Cr. 18 12 53% % 9% 7% PBT Rs. Cr. 2.8 1.5 83% % 1.5% 1% •
Slide 57: Disclaimer
Disclaimer This presentation has been prepared by Max India Limited (the “Company”). No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in the presentation. The past performan
Slide 58: Max India Ltd.
MAX INDIA LTD. Max House, Okhla, New Delhi – 110 020 Phone: +91 11 26933601-10 Fax: +91 11 26933619 Website: www.maxindia.com 58