Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Merger or Acquisition (April 2024)
20 slides from Apollo Hospitals Enterprise's merger presentation, Apr 26, 2024
Slide 1: Apollo Hospitals Regulation 30 disclosure cover letter
APOLLO HOSPITALS ENTERPRISE LIMITED CIN : L8511OTN1979PLC008035 •· AAollo ~OSPITALS 25th April 2024 The Secretary, The Secretary, Bombay Stock Exchange Ltd (BSE) National Stock Exchange, Phiroze Jheejheebhoy Towers, Exchange Plaza, 5th Floor Dalal Street, Plot No.C/1, 'G' Block Mumbai - 400 001. Ban
Slide 2: Apollo Healthco Ltd Proposed Transaction
-· Apollo Healthco Ltd Proposed Transaction April 26, 2024 •
Slide 3: Executive Summary
• • Executive Summary • Apollo Healthco Limited (“AHL”) proposes to raise equity capital of INR 2,475 Cr (USD 300 Mn) from Advent Overview International, one of the largest global private equity investors with an AUM of over USD 94 Bn • Proposes integration of Keimed Private Limited (“Keimed”) with
Slide 4: Key Terms of The Transaction
• • Key Terms of The Transaction • Advent to invest INR 2,475 Cr in 2 tranches Investment o 70% at first close – INR 1,732 Cr Amount o Balance 30% at 12 months of the first close – INR 743 Cr • Growth capital for AHL of INR 860 Cr – to provide AHL with further impetus to strengthen its position in t
Slide 5: AHL Overview
Wy AHL Overview Wi
Slide 6: Apollo HealthCo | India's Largest Omni-channel Healthcare Platform
• • Apollo HealthCo | India’s Largest Omni-channel Healthcare Platform Unmatched Size Key Differentiators • 31 Mn.+ Registered Users Strong brand lineage & captive network • 620,000 Daily Active Users resulting in distinctive advantage of lowest CAC • Serving consumers through network vs industry of
Slide 7: Apollo 24|7: Best-in-class Healthcare Platform
• • Apollo 24|7 : Best-in-class Healthcare Platform One stop integrated access for all healthcare Key Business and Operational Metrics services through a unified app ~6,000+ r. -·· (i) Virtual Doctor ~31Mn+ Daily Consultations I A I ,- Consultations Registrations C':::::::'":J INR 2,000+ GMV (YTD 9M
Slide 8: Keimed Overview
Wy Keimed Overview Wi
Slide 9: Business Overview
• • Business Overview Keimed has established itself as India’s largest pharma distributor with >2x the scale of the nearest competitor in a highly fragmented industry with 70,000+ distributors Trusted Unmatched High Quality Preferred Sales State-of-the-art Experienced Manufacturer Scale Customer Bas
Slide 10: Financial Overview
• • Financial Overview Consistent Revenue Growth Industry Leading EBIDTA Margins Revenues (INR Cr) 3.6% 3.7% 3.6% 3.5% 3.4% EBIDTA 339 (INR Cr) 282 262 9,365 243 214 7,623 7,756 6,904 5,936 FY20-21 FY21-22 FY22-23 YTD 9M Dec 22 YTD 9M Dec 23 FY20-21 FY21-22 FY22-23 YTD 9M Dec 22 YTD 9M Dec 23 Sound
Slide 11: Combined Entity Overview
-· Combined Entity Overview •
Slide 12: Unique combination of Consumer driven Digital health with Integrated Pharmacy distribution
Unique combination of Consumer driven Digital health • • with Integrated Pharmacy distribution Integrated business model will help drive several synergies • Faster expansion in Tier 2/ 3 markets by leveraging on existing infrastructure • Broader channel for AHL’s private label push • End-to-end supp
Slide 13: Combined Financial Metrics | Snapshot (YTD 9MDec'23)
Combined Financial Metrics | Snapshot (YTD 9MDec'23) • • INR Cr Offline Online Pharmacy Pharmacy + Distribution + = Total Healthco + Keimed = Combined Distribution Apollo 24/7 Revenue 5,139 661 5,800 7,756 10,208* EBIDTA (Pre-Ind AS 116) 1 375 74 449 262 711 EBIDTA % (Pre-Ind AS 116) 1 7.3% 11.2% 7.
Slide 14: Merged Entity | Financial Outlook (Proforma)
Merged Entity | Financial Outlook (Proforma) • • YTD 9M Dec 23 Year 3 Annualized Target Targets to achieve EBIDTA breakeven for digital business in 6-8 quarters Total INR 13,600 ~INR 25,000 Revenues Cr Cr Proposed integration to enable higher margin realisation through supply chain efficiencies EBID
Slide 15: Structure and Transaction Timelines
-· Structure and Transaction Timelines •
Slide 16: Proposed Transaction Structure (1/2)
Proposed Transaction Structure (1/2) • • Pre-Transaction Post Advent Tranche 1 Investment Post Advent Tranche 2 Investment (As of date) (T) (T+12 Months) AHEL ESOP AHEL Advent ESOP AHEL Advent ESOP 95% 5% 83.1% 12.5% 4.4% 79.0% 16.8% 4.2% 2% 11.1% AHL AHL Keimed AHL Keimed Tranche 1 Tranche 2 • Adve
Slide 17: Proposed Transaction Structure (2/2)
Proposed Transaction Structure (2/2) • • Launch of Merger Process Post Merger (T+15 Months) (T+30 Months) Keimed Keimed AHEL Advent ESOP Shareholders AHEL Shareholders 79.0% 16.8% 4.2% 59.2%* 25.7% Min Max Advent ESOP 11.1% 12.1% 3.0% AHL Keimed Consolidation with AHL 2 1 Consolidation with Keimed V
Slide 18: Transaction Process
• • Transaction Process A Outreach to marquee investors by our Investment Bankers (VedaCorp) Detailed Commercial, Financial, Tax, Legal and ESG due diligence on AHL & Keimed by incoming B investor C Financial due diligence (Deloitte) and Legal due diligence (Cyril Amarchand) on Keimed by AHL AHL has
Slide 19: Steps and Timelines
. . '}. Steps and Timelines Day 0 0 Day 60-75 12 Months from Month ~24-30 T2 Signing CCI Tranche 1 Completion of Approval Tranche 2 Closing Merger Process Tranche 1 Tranche 2 Day 30-45 Day 75 < 15 Months T1 Shareholder Tranche 1 Closing from Tranche 1 Approval Launch of Merger Process ,. . 18
Slide 20: Thank You
Thank You THANK YOU
Apollo Hospitals Enterprise — Merger or Acquisition (April 2024) on 6ix