Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — UBS Flagship India Conference 2022
39 slides from Max Healthcare Institute's conference presentation, Nov 8, 2022
Slide 1: Exchange filing cover letter
November 08, 2022 Listing Department, Listing Department, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C-1, Block G, 25th Floor, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E), Dalal Street, MUMBAI - 400 051 MUMBAI - 400 001 Symbol: MAXHEALTH Scrip Code: 543
Slide 2: Investor Presentation November 2022
Investor Presentation November 2022
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “presentation”) contains selected information about the activities of Max Healthcare Institute Limited’s (“Max Healthcare”/“MHIL”/“MHC”/”Company”) as at the date of the presentation. None of MHIL, its directors, promoter, or affiliates, n
Slide 4: Content
Content Company Overview 04 Key Growth Drivers 14 Financial Highlights 25 Appendix 31 3
Slide 5: Company Overview
By MAX Healthcare Company Overview
Slide 6: Max Healthcare: India's Second Largest Hospital Chain
Max Healthcare: India’s Second Largest* Hospital Chain in terms of revenue, EBITDA and market capitalisation Current capacity 3,400+ beds 17 ~85% 76% Facilities Beds in metros H1 FY23 NCR Occupancy 280 Shalimar Bagh 540 402 378 BLK Patparganj 12% 59% ~32% Eqova Vaishali Revenue CAGR^ EBITDA CAGR^ H1
Slide 7: Vision: To be the Most Well Regarded Healthcare Provider in India
Vision: To be the Most Well Regarded Healthcare Provider in India To be the most well regarded healthcare provider in India committed to the highest standards of clinical excellence and patient care supported by latest technology and cutting edge research Quaternary care facilities World class infra
Slide 8: Journey so far
Journey so far Dr. B L Kapur Memorial Dr. Balabhai Nanavati • Radiant-Max Healthcare merger Executed O&M Agreement Hospital, Rajendra Hospital, Mumbai(1) and listing on BSE and NSE for the first asset light Place(1) • Discontinuation of Max Multi model in Dwarka, Delhi for Speciality Centre, Pitampu
Slide 9: Leading clinically comprehensive hospital chain with research and academics foundation
Leading clinically comprehensive hospital chain with excellent research and academics foundation Complex procedures performed High end quaternary care facilities Robotics Cardiac Neuro Orthopedic Oncology Transplants(1) surgeries procedures(2) surgeries(3) surgeries(4) surgeries(5) Est. Annual count
Slide 10: Dominant presence in the most attractive markets (1/2)
Dominant presence in the most attractive markets (1/2) Highest demand supply mismatch, per capita income and insurance penetration leading to Delhi and Mumbai having the highest ARPOB and most profitable hospital markets in India High demand-supply gap in Delhi NCR & Mumbai… …leading to higher ARPOB
Slide 11: Dominant presence in the most attractive markets (2/2)
Dominant presence in the most attractive markets (2/2) Being metro-centric also positions MHC well to capitalise on medical tourism India’s foreign medical tourism industry has ~3 Mn Delhi NCR captures highest proportion of Key hubs from domestic hinterland in been growing medical India’s foreign me
Slide 12: Strategy going forward
Strategy going forward Build on Optimise Existing Clinical Expertise Infrastructure Attract best in class talent Payor mix, Capacity to focus on industry Utilisation, ALOS and leading patient outcomes Procedure Mix Focus on Capital Increase Bed Light Adjacencies Capacity Max Lab and Brownfields and
Slide 13: Best in class performance parameters
Best in class performance parameters ARPOB(1) Occupancy (INR/OBD) (‘000) (%) 66 75% 74% 59 54 65% 63% 60% 63% 65% 50 52 45 48 55% 56% 40 41 Operating parameters Max Healthcare Apollo Hospitals Fortis Max Healthcare Apollo Hospitals Fortis (Hospitals Business) (Hospital Business) (Hospitals Business)
Slide 14: Distinguished Board and a dynamic management team
Distinguished Board and a dynamic management team Distinguished Board of directors Mr. Abhay Soi Mr. Anil Bhatnagar Ms. Harmeen Mehta Mr. Kummamuri Chairman and Managing Senior Lawyer & Chief Digital and Innovation Narasimha Murthy Director Arbitrator Officer at BT Group Plc Chartered Accountant Mr.
Slide 15: Key Growth Drivers
By MAX Healthcare Key Growth Drivers
Slide 16: Strong financial profile to support expansion plans
Multiple avenues for future growth • Optimise Payor mix 1 Optimising Existing Strong cash generation from 2 Infrastructure • Increase utilisation operations • Focus on tower specialities Strong financial profile to support expansion plans INR ~ 524 Cr in H1 FY23 • 2,300 beds addition via brownfield
Slide 17: Playbook for building capacity at attractive returns
1 Playbook for building capacity at attractive returns Brownfield • Extremely attractive economics with low risk Expansion o Locations where hospitals are running at or close to full capacity – high visibility on reaching optimal capacity utilisation and quick ramp up limiting pre-operating losses P
Slide 18: Growth opportunity in existing facilities
2 Growth opportunity in existing facilities Optimising payor mix Bed share • Push for reduction in institutional business to move towards 15% 31.0% 29.1% 36.5% 34.2% in the next 2-3 years, driven by - 4.9% – Steady pace of organic growth in Self Pay, TPA and corporate 3.0% 2.0% 5.4% channels, and –
Slide 19: Existing valuable land bank to enable addition of 4,000+ beds
3 Existing valuable land bank to enable addition of 4,000+ beds, with ~2,800 beds coming in next 5 years Indicative commencing timelines for new beds 7,442 Shalimar Bagh 500 Dwarka, South-west Delhi 500 Gurugram (Sec 53 & 56) 200 Saket Complex (Smart) 250 150 Mohali 200 111 Nanavati Hospital* 300 25
Slide 20: Snapshot of recent inorganic transactions
3 Snapshot of recent inorganic transactions 1. Vikrant Foundation, Saket 2. Land acquired in Gurugram Type of expansion Brownfield Greenfield 500 beds on 3.5 acres of land in South Delhi 1,000 beds on 2 prime land parcels in Gurugram totaling Capacity build up 11.4 acres Land connects two existing h
Slide 21: Snapshot of recent inorganic transactions
3 Snapshot of recent inorganic transactions 3. O&M Agreement in South-west Delhi 4. Acquisition of Eqova Healthcare in East Delhi Type of expansion Asset Light Acquisition Capacity build up 300 beds on 8.6 acres of land in Sector 10, Dwarka 400 beds on 2.1 acres of land in Patparganj Built to suit m
Slide 22: Strong track record of successful acquisitions
3 Strong track record of successful acquisitions • Management team has done multiple successful acquisitions including BLK, Nanavati and Max Healthcare • Adequate headroom driven by strong free cash flows and low leverage to pursue M&A even after considering brownfield and greenfield expansions Case
Slide 23: Develop asset light adjacencies: Max Lab
4 Develop asset light adjacencies: Max Lab - Targeting to be amongst the top 5 players in the industry in next 5 years Operational footprint Organised diagnostics player to grow faster than overall diagnostic Industry driven by consolidation (as of Sept. 30, 2022) Indian diagnostic Industry market s
Slide 24: Develop asset light adjacencies: Max@Home
4 Develop asset light adjacencies: Max@Home – Targeting to be the largest player in Delhi NCR Indian home healthcare is under-penetrated with ~3.6% of total health spending on home Growth Drivers healthcare vis-à-vis ~8.3% in the US Indian home healthcare market to grow at a CAGR …with organised hea
Slide 25: Proprietary digital platform enabling omnichannel healthcare experience
5 Proprietary digital platform enabling best-in-class omnichannel healthcare experience Max MyHealth New age experience for patients and doctors Single App for all types of consults (physical and virtual) for both doctors and patients Instant consult with a general practitioner within 10 minutes
Slide 26: Financial Highlights
By MAX Healthcare Financial Highlights
Slide 27: Network P&L Statement: H1FY23
Network P&L Statement: H1FY23 Figs in INR Cr FY20 FY21 FY22 H1FY23 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue 1 4,356 3,881 5,509 3,040 Net revenue 4,023 100.0% 3,629 100.0% 5,218 100.0% 2,875 100.0% Direct costs 1,715 42.6% 1,508 41.6% 2,103 40.3% 1,126 39.2% Contribution 2,308 5
Slide 28: Network P&L Statement: Q2 FY23
Network P&L Statement: Q2 FY23 Figs in INR Cr Q2 FY22 Q1 FY23 Q2 FY23 Amount % NR Amount % NR Amount % NR Gross revenue1 1,434 1,473 1,567 Net revenue 1,353 100.0% 1,393 100.0% 1,482 100.0% Direct costs 553 40.9% 551 39.6% 575 38.8% Contribution 800 59.1% 842 60.4% 907 61.2% Indirect overheads2 438
Slide 29: Memorandum Profit & Loss Consolidation sheet of Network Financials
Max Healthcare: Memorandum Profit & Loss Consolidation sheet of Network Financials for H1 FY23 Figs in INR Cr MHIL, its Partner Healthcare Facilities ("PHF") Financials Eliminations MHC Network subsidiaries & (IGAAP Unaudited)* & (Consolidated) Silos Adjustment(2) (Certified by an Ind AS Balaji GM M
Slide 30: Network Balance Sheet
Network Balance Sheet1 Figs in INR Cr Sep 21 Particulars Mar 22 Sep 22 6,282 Shareholders' Equity 6,718 7,462 1,002 Gross Debt 918 815 440 Deferred / Contingent Consideration Payable2 425 446 5 Put Option Liability3 139 144 196 Lease Liabilities (Ind AS 116) 202 137 179 Deferred Tax Liability / (Def
Slide 31: Thank You
By MAX Healthcare Thank You
Slide 32: Appendix
Appendix 1. ESG Update 2. Network structure 31
Slide 33: ESG Update
By MAX Healthcare Appendix 1 ESG Update
Slide 34: ESG Highlights for the year 2022
ESG Highlights for the year 2022 Environment 18.6% reduction in combined Scope 1 & 44% share of renewables in the total power 4.6% reduction in total electricity Scope 2 emissions w.r.t base year FY 2019-20 usage consumption over base year FY 2019-20 35.9% of water recycled, up from 31.5% in > 50% o
Slide 35: Network structure
Appendix 2 Network structure 34
Slide 36: Network Holding Structure
Network Holding Structure (as of September 30, 2022) Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Medical Service Agreement with Society Max Panchsheel Immigration centre (Lajpat Nagar) Max Saket (West) MHIL Devki Devi Society SBUs (MaxLab, Max@Home) (Max Saket East
Slide 37: List of Network Healthcare Facilities
List of Network Healthcare Facilities Name Location Description Max Super Speciality Hospital, (West Block) Saket Delhi Hospital Max Super Speciality Hospital, (East Block) Saket Delhi Hospital Max Smart Super Speciality Hospital, Saket Delhi Hospital BLK-Max Super Speciality Hospital, Rajendra Plac
Slide 38: Definitions
Definitions Term Description Amount billed to the patients/customers as per contracted/rack rates, as applicable, including the patients from the economically weaker section (EWS) on discharge basis; Also includes movement in unbilled revenue Gross Revenue at the end of the period for patients admit
Slide 39: About Us
About Us Max Healthcare Institute Limited (MHIL) is India’s leading provider of healthcare services. For further information, please visit It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education. www.maxhealthcare.in MHIL has major c
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