Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (September 2022)
51 slides from Apollo Hospitals Enterprise's investor presentation, September 2022
Slide 1: Apollo Hospitals Enterprise Limited Investor Presentation
Apollo Hospitals Enterprise Limited Investor Presentation September 2022
Slide 2: Key Highlights
Key Highlights India’s Largest Integrated Attractive Industry Strong Financial & Healthcare System Opportunity Operational Track Record Annexure 1 2 3 4 5 6 7 Clinical Pioneers Engines of Growth Prioritizing ESG 2
Slide 3: India's Largest Integrated Healthcare System
1 2 3 4 5 6 7 India’s Largest Integrated Healthcare System 3
Slide 4: Transforming Healthcare Delivery in India: Over 35 Years of Legacy
Transforming Healthcare delivery In India : Over 35 Years of legacy Created Created Created Created Largest Hospital Largest Offline 3rd Largest Private Health India’s Leading Retail Chain in India Pharmacy in India Insurer in India Healthcare Network 71 hospitals 5,000+ stores in 1100+ cities Faste
Slide 5: India's Largest Integrated Health System
India’s Largest Integrated Health System APOLLO CLINICS (Retail Healthcare) APOLLO SPECIALTY SERVICES • Culture of innovation Apollo Health • Clinical expertise Checks • Learning Organisation APOLLO HOSPITALS Telemedicine Pan –India Consultations Hospitals PATIENT CLINICAL ▪ Empowered and engaged pa
Slide 6: Largest Pan-India Hospital Chain
Largest Pan-India Hospital Chain Hospitals Capacity Beds Operational beds Hospitals 71 ; Beds 9,957 Owned Sub & JVs 44 8,574 7,872 Tamilnadu Region North Managed 5 851 851 2521 21 10 1394 Total (a) 49 9,425 8,723 AHLL (b) 22 532 532 AP & Telangana Western AHEL (a+b) 71 9,957 9,255 10 1307 12 1580 He
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 • Outpatient Clinics • Diagnostics and dialysis Out-of-Hospital care • Surgery centers • Single Specialty Facilities • Leading India’s transition to Day Surge
Slide 8: Largest Omni-Channel Digital Health Offering
Largest Omni-Channel Digital Health Offering Apollo HealthCo Ltd (AHL) Apollo 247 –Digital Platform Apollo Pharmacy Platform Added As at September 30, 2022 527 H1 23 ~20Mn+ ~10.6 Lakh+ ~6,651+ Closed 54 Registrations Daily Active Users Doctors H1 23 Daily Consultation Chandigarh: 6 Net 473 Virtual D
Slide 9: Highlights Q2FY23
Highlights Q2FY23 Revenue EBITDA Healthcare 44 Owned 9,425 143,387 Services + Owned & 68% INR 50,353 / ` 22,645 Mio ` 5,713 Mio Occupancy day In-patients (Hospitals) 5 Managed Managed ARPOB1 Rev 53% 25.2% Hospitals Beds Share Margin ` 3,183 Mio ` 377 Mio Rev 7% 11.8% Diagnostics & 22 532 109 Share ~
Slide 10: Clinical Pioneers
1 2 3 4 5 6 7 Clinical Pioneers 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 18 Robotic Advanced G4 Cyber-knife Proton therapy for 640 slice CT surgical systems Diagnostics cancer Among the first to First MRI, CT, Pet CT in Asia Pacific’s most advanced 640 slice dyn
Slide 12: Patient First Mindset
Patient First Mindset Clinical Execution Service excellence excellence excellence Medically Known for Patient Care Through Value for Money Service Excellence The Apollo Family Clinical Excellence • COEs • Patient Care Plan • Clinician Engagement • Case Mix • Outcomes • Ward as a unit • Best places t
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 in Bhutan Asia's Largest Healthcare Ed The Apollo University, Chittoor College of Physiotherapy Tech Apoll
Slide 15: Resulting in Higher Clinical Volumes
Resulting in Higher Clinical Volumes Leaders in Clinical Care 8 32 Pioneering in cutting edge treatment First liver First simultaneous First combined First bilateral transplant Kidney- kidney & Minimally Invasive Pancreas Liver Knee Replacement transplant transplant FY22 7,700+ 29,000+ 1,200+ 6,400+
Slide 16: Attractive Industry Opportunity
1 2 3 4 5 6 7 Attractive Industry Opportunity 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 India Health
Slide 18: Infrastructure lag provides strong growth tailwinds
Infrastructure lag provides strong growth tailwinds India lags other developed and emerging economies in healthcare infrastructure Beds per 10,000 people 71 Global medium : ~29 43 29 26 25 21 21 19 15 Russia China US Vietnam UK Thailand Brazil Malaysia India Physicians per 10,000 people 58 Global av
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 Communicable diseases Cancer 0-14 years 14-29 years 30
Slide 20: Heal in India: Global hub for medical and wellness tourism
“Heal in India” Global hub for medical and wellness tourism India is fast emerging as a major medical tourist destination Heal in India initiative, aims to promote Medical Value Travel in the Country. 0.69 Fall due to The medical tourism market valued at USD 6 Covid-19 billion in 2020 fiscal year is
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
1 2 3 4 5 6 7 Engines of Growth 22
Slide 23: Optimize Hospital Occupancy through Enhanced COE focus and Payor mix
Optimize Hospital Occupancy through Enhanced COE focus and Payor mix Focus on Centers of Excellence with strong, clinically differentiated anchor specialties in each market 29 5,788 Mature Hospitals1 Capacity Beds Extend and expand our oncology presence both through Hospitals specialization and excl
Slide 24: Focused on Diagnostics & Primary Care as the Next Growth Vector
Focused on Diagnostics & Primary Care as the Next Growth Vector Focus on taking Healthcare Closer to Communities Primary Care • Network expansion via various formats (varying by location) to bring quality healthcare services closer to communities and large residential settlements A • Grow Condition
Slide 25: HealthCo: Building Scale through Customer Centricity
HealthCo : Building Scale through Customer Centricity Revenue Growth Customer Centricity ₋ Build Pharma AOV driving categories for ⁻ Extensive market research focused on specialty drugs, Private label customer requirements (e.g., launch of ₋ Increase # of SKUs through bundling, doctor connect model
Slide 26: Strong Financial & Operational Track Record
1 2 3 4 5 6 7 Strong Financial & Operational Track Record 26
Slide 27: Strong Growth in Revenues across Businesses
Strong Growth in Revenues across Businesses FY22 FY13-FY22 FY13-FY22 FY13-FY22 $1.9 billion 16% 15% 19% Consolidated Revenue1 CAGR (Consolidated Rev) CAGR (HCS incl AHLL) 2 CAGR (Pharmacy) 79,891 57,297 2 51,426 53,610 48,206 50,022 45,157 40,851 38,860 37,033 32,214 32,689 48,760 28,843 27,852 25,5
Slide 28: Aided by Strong Operating Metrics
…..Aided by Strong Operating Metrics In-patient Admissions (‘000) Bed Occupancy Rate(1) % Operating Beds 3,930 4,257 4,767 5,153 5,549 5,811 6,321 6,724 6,940 7,111 7,246 7,491 7,409 7,875 428 451 478 460 354 374 399 352 281 313 332 211 235 265 76% 73% 73% 71% 72% 71% 68% 68% 67% 63% 64% 66% 55% 63%
Slide 29: and 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 HealthCo from 16th March FY22 HealthCo 26% 46% 46% 20% 21% SAP 39% 17% 16% 31% 14% 15% 14% 13% 14% 14% 11% 11% 10% 19% 15% 15% 6% 10% 9% 6% 7%
Slide 30: Consolidated Financials Q2 FY23
Consolidated Financials Q2 FY23 Digital Health Healthcare Diagnostics & ` Mio & Pharmacy Consol Services Retail Health Distribution Total Revenues 22,645 3,183 16,683 42,511 EBITDA (Post Ind AS 116) (Pre 24|7 Cost) 5,712 377 1,308 7,398 Gross Debt 25,599 margin (%) 25.2% 11.9% 7.8% 17.4% 24/7 Operat
Slide 31: Consolidated Financials H1 FY23
Consolidated Financials H1 FY23 Digital Health & Healthcare Diagnostics & ` Mio Pharmacy Consol Services Retail Health Distribution Total Revenues 42,879 6,113 31,475 80,467 EBITDA (Post Ind AS 116) (Pre 24|7 Cost) 10,556 672 2,490 13,717 margin (%) 24.6% 11.0% 7.9% 17.0% 24/7 Operating Cost -2,936
Slide 32: Consolidated Healthcare Services Performance Q2FY23
Consolidated Healthcare Services Performance Q2FY23 Healthcare Serv Healthcare Serv Healthcare Serv ` Mio Group (New & Group (Mature) Others) Group Volume growth of 19% from 120,105 in Q2FY22 to No of Hospitals 29 15 44 143,387 in Q2FY23 Operating beds 5449 2423 7872 Occupancy 70% 64% 68% Covid medi
Slide 33: Consolidated Healthcare Services Performance H1FY23
Consolidated Healthcare Services Performance H1FY23 Healthcare Serv Healthcare Serv Healthcare Serv ` Mio Group (New & Group (Mature) Group Revenue grew by 12%YoY excluding covid Others) No of Hospitals 29 15 44 vaccination Operating beds 5449 2423 7872 Occupancy 66% 59% 64% Revenue 30,386 12,493 42
Slide 34: Region wise Operational Parameters
Region wise Operational Parameters Tamilnadu Region AP, Telengana Region Total (6) (2) (Chennai & others) (1) (Hyderabad & others) Particulars H1 FY 22 H1 FY 23 yoy (%) H1 FY 22 H1 FY 23 yoy (%) H1 FY 22 H1 FY 23 yoy (%) H1 FY23 ARPOB in Metro cities at ` 60,267 No. of Operating beds 7,647 7,872 2,1
Slide 35: AHLL Financial Performance Q2FY23
AHLL Financial Performance Q2FY23 Q2 Diagnostics Clinics Sugar Dental Dialysis Cradles (IP) IVF Spectra (IP) Network 1,499 291 53 104 109 8 15 11 AHLL reported a revenue drop in Footfalls/Day* 13,043 3,361 481 226 1,625 45 28 91 Q2 FY23 on YoY basis due to Gross ARPP (Rs.)* 776 1,548 3,317 5,287 1,6
Slide 36: AHLL Financial Performance H1FY23
AHLL Financial Performance H1FY23 H1 Diagnostics Clinics Sugar Dental Dialysis Cradles (IP) IVF Spectra (IP) Network 1,499 291 53 104 109 8 15 11 Footfalls/Day* 11,631 3,537 480 212 1,562 44 28 92 AHLL reported a revenue drop in H1 Gross ARPP (Rs.)* 774 1,363 3,274 5,498 1,610 100,737 39,302 99,455
Slide 37: Diagnostics: Key Parameters
Diagnostics : Key Parameters Gross Revenue (INR Mn)1 EBITDA* (INR Mn)2 Operational footprint (as of Sep 30, 2022) 1,087 1,040 914 922 18% 816 118 ~200 413 14% 306 358 99 12% Cities presence 11% in India 922 162 152 717 129 608 564 675 99 3% 22 97 Labs Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22*
Slide 38: Health Co Financials Q2 FY23
Health Co Financials Q2 FY23 Online Offline Pharmacy Pharmacy Total Health o Q2 delivered GMV : ~Rs 294 cr (36% higher from Q1’22) ` Mio o Sep run rate of ~50K/day transactions across Pharma, Distribution Distribution & Co Apollo 247 Diagnostics and Consultations compared to ~25K/day in March Total
Slide 39: Health Co Financials H1 FY23
Health Co Financials H1 FY23 Online Pharmacy o H1 delivered GMV : ~Rs 510 cr (190% higher from H1 22) Offline Pharmacy Total Health ` Mio Distribution & Distribution Co Apollo 247 o Combined Pharmacy platform business reported revenue of Total Revenues 28,687 2,787 31,475 Rs 3,858 cr in H1 FY23 comp
Slide 40: Prioritizing ESG
1 2 3 4 5 6 7 Prioritizing ESG 40
Slide 41: Focusing on Material Topics
Focusing on Material Topics • Each stakeholder constituency is important and means something different for us and we remain committed to their interests while growing in a transparent and accountable manner. • Our modes of engagement with our key stakeholders together with the materiality process gi
Slide 42: Sustainability Strategy
Sustainability Strategy Environmental Reducing Environmental Impact while ensuring Efficiency 1 2 Efficient and Green Supply Chain Management 3 Patient and Customer Satisfaction 9 4 Innovation to Drive Highest Quality to Ensure Patient Safety Strategic Social Focus 5 Accessible Healthcare Areas 6 Ac
Slide 43: Caring for the Environment: Focus Areas
Caring for the Environment Focus Areas Reducing Environmental Impact • Evaluate our impact on the environment and Water improve our operations by reducing thermal and Fighting water scarcity by being efficient. Third energy consumption party water audits are carried out to promote water conservation
Slide 44: 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 an
Slide 45: Patient Centric Care
Patient Centric Care Patient and Customer Satisfaction •Responsible Billing practices: High level of transparency from Admissions to Discharge including Assured Pricing Packages •Service Excellence: • Our Service Standards include 1000+ ‘critical to Customer Standards’ Accessible Healthcare and Enga
Slide 46: Our Approach to Governance
Our Approach to Governance Key Features : • Newly appointed Lead Independent Director • Board Skills Matrix in our Annual report (Pg no : 100) • The Board has established a CSR and Sustainability Committee which steers the materiality process and focus areas. • Management incentives include ESG-rela
Slide 47: Looking Forward
Looking Forward……. “We believe our journey to become a sustainable healthcare provider is through continuous improvement. Sustainability is a strategic imperative for us - not a checklist exercise. We believe that this will not just satisfy the expectations of our investors, but will set us apart as
Slide 48: Annexure
1 2 3 4 5 6 7 Annexure 48
Slide 49: Basis of Consolidation
Basis of Consolidation AHEL Standalone Location Description AHEL Ownership AHEL Subsidiaries Location Description Ownership Chennai Main Chennai Hospital Material Subs ACI - Chennai Chennai Hospital Apollo Health Co limited India Digital Omni-Channel Healthcare services 100.00% Tondiarpet - Chennai
Slide 50: IND AS 116: Impact on P&L and Balance Sheet – H1FY23
IND AS - 116 : Impact on P&L and Balance Sheet – H1FY23 ` Mio AHEL Standalone (post IND AS 116) AHEL Consolidated (post IND AS 116) Balance sheet Profit & Loss Balance sheet Profit & Loss Right of use 5,177 Revenue Right of use 10,639 Revenue Asset Asset Other 407 Other as of as of 943 expenses 30th
Slide 51: Thank you!
Thank you ! 51
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