Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Motilal Oswal 19th Annual Global Investor Conference 2023
38 slides from Max Healthcare Institute's conference presentation, Aug 21, 2023
Slide 1: Exchange intimation letter for investor conference
August 21, 2023 Listing Department, Listing Department, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai – 400 051 Mumbai – 400 001 Symbol: MAXHEALTH Scrip Code: 543220 Sub.: Pres
Slide 2: Investor Presentation
Investor Presentation August 21, 2023
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 23 Appendix 29 3
Slide 5: Company Overview
By MAX Healthcare Company Overview
Slide 6: India's second largest hospital chain in terms of revenue, EBITDA and market capitalisation
Max Healthcare: India’s second largest* hospital chain in terms of revenue, EBITDA and market capitalisation Current capacity ~3,550 beds 17 ~82% ~76% NCR Facilities Beds in metros FY23 Occupancy 402 Shalimar Bagh 540 402 378 BLK Patparganj 13% 41% ~33% Eqova Vaishali Revenue CAGR^ EBITDA CAGR^ FY23
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 Executed O&M Agreement Dr. B L Kapur Memorial Dr. Balabhai Nanavati • Radiant-Max Healthcare merger for the first asset light Hospital, Rajendra Hospital, Mumbai(1) and listing on BSE and NSE model in Dwarka, Delhi for Place(1) • Discontinuation of Max Multi 300+ beds(1) Speciality Ce
Slide 9: Leading clinically comprehensive hospital chain with excellent research and academics foundation
Leading clinically comprehensive hospital chain with excellent research and academics foundation High end Complex procedures performed quaternary care facilities Robotic 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) Low bed density, higher per capita income, higher ARPOB and rising insurance penetration make Delhi and Mumbai attractive avenues for growth High demand-supply gap in Delhi NCR & Mumbai… …coupled with rising insurance penetration Total beds per
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 Break-up of medical tourists* by 15 company & partner-owned Patient Assistance been growing major country of origin Centres
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 Expand Bed Light Adjacencies Capacity Max Lab and Brownfields and Ma
Slide 13: Best in class performance parameters
Best in class performance parameters ARPOB(1) Occupancy (INR/OBD) (‘000) (%) 75 67 75% 76% 74% 59 58 60 63% 64% 62% 63% 67% 64% 52 54 45 48 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 Mr. Narayan K. Mr. Kummamuri Chairman and Managing Senior Lawyer & Sheshadri Narasimha Murthy Director Arbitrator Non-executive Chairman of Chartered Accountant AstraZeneca Pharmaceuti
Slide 15: Key Growth Drivers
By MAX Healthcare Key Growth Drivers
Slide 16: Strong financial profile to support future growth
Multiple avenues for future growth • Focus on tower specialities & case mix 1 Optimising Existing Strong cash generation from 2 Infrastructure • Increase utilization & improve process efficiencies operations • Optimize payor mix INR 261 Cr in Q1 FY24 • ~2,600 beds addition via brownfield expansion -
Slide 17: 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% 31.3% 29.2% 29.7%* 36.5% 34.2% in the next 1-2 years, driven by - 5.0% – Steady pace of organic growth in Self Pay, TPA and corporate 2.8% 5.5% 2.0% 5.4% chan
Slide 18: Existing valuable land bank to enable addition of 4,000+ beds
3 Existing valuable land bank to enable addition of 4,000+ beds, with ~2,600 beds coming over next 4 years Indicative timelines for completion of expansion projects Shalimar Bagh 150 7,442 Dwarka, South-west Delhi 200 Gurugram## 500 Saket Complex (Smart) 500 Mohali Nanavati Hospital* Saket Complex (
Slide 19: Expansion projects coming on stream over next 3 years
3 Expansion projects coming on stream over next 3 years Dwarka (Asset-Light) – 300 beds Mohali – 190 beds Nanavati – 329 beds in Phase I • Majority of the MEP and interior work completed. • Demolition of existing building and shifting of services • Excavation and raft work are nearly complete. Appli
Slide 20: 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 spend on brownfield and greenfield expansions Case st
Slide 21: Develop asset light adjacencies: Max Lab
4 Develop asset light adjacencies: Max Lab – Our non-captive pathology SBU Operational footprint Organised diagnostics players to grow faster than overall Diagnostic Industry (as of June 30, 2023) India Diagnostic market to see steady growth Indian Diagnostic Industry mix by type of providers (INR B
Slide 22: Develop asset light adjacencies: Max@Home
4 Develop asset light adjacencies: Max@Home – Amongst the largest homecare providers in the country Indian home healthcare is under-penetrated with only ~3.6% of total health spending on home Growth Drivers healthcare vis-à-vis ~8.3% in the US Home healthcare solutions ~40% Indian home healthcare ma
Slide 23: Max MyHealth – Proprietary digital platform
5 Max MyHealth – Proprietary digital platform enabling best-in- class omnichannel healthcare experience ‘Max MyHealth’ offering new age experience for patients and doctors Single App for all types of consults (physical and virtual) for both doctors and patients; instant consults with a general pra
Slide 24: Financial Highlights
By MAX Healthcare Financial Highlights
Slide 25: Network P&L Statement: Q1 FY24
Network P&L Statement: Q1 FY24 Figs in INR Cr Q1 FY23 Q4 FY23 Q1 FY24 Amount % NR Amount % NR Amount % NR Gross revenue 1,473 1,637 1,719 Net revenue 1,393 100.0% 1,551 100.0% 1,629 100.0% Direct costs1 551 39.6% 605 39.0% 650 39.9% Contribution 842 60.4% 947 61.0% 979 60.1% 2 Indirect overheads 472
Slide 26: Memorandum Consolidation of Network P&L: Q1 FY24
Memorandum Consolidation of Network P&L: Q1 FY24 Figs in INR Cr MHIL & its Partner Healthcare Facilities ("PHF") Financials MHC Network subsidiaries & Eliminations Silos (IGAAP Unaudited)* (Consolidated) & (Certified by an Ind AS Balaji GM Modi Devki Devi IND AS Adjustment (2) ICA) Unaudited Society
Slide 27: Network P&L Statement: FY23
Network P&L Statement: FY23 Figs in INR Cr FY20 FY21 FY22 FY23 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue 1 4,356 3,881 5,509 6,236 Net revenue 4,023 100.0% 3,629 100.0% 5,218 100.0% 5,904 100.0% Direct costs 1,715 42.6% 1,508 41.6% 2,103 40.3% 2,304 39.0% Contribution 2,308 57.4%
Slide 28: Network Balance Sheet
Network Balance Sheet1 Figs in INR Cr Mar 22 Particulars Sep 22 Mar 23 6,718 Shareholders' Equity 7,462 8,070 918 Gross Debt 815 682 425 Deferred / Contingent Consideration Payable2 446 440 139 Put Option Liability3 144 150 202 Lease Liabilities (Ind AS 116) 137 139 185 Deferred Tax Liability / (Def
Slide 29: Thank You
By MAX Healthcare Thank You
Slide 30: Appendix
Appendix 1. ESG & CSR Updates 2. Network Structure 29
Slide 31: Appendix: ESG Highlights, CSR Initiatives
Appendix 1 ESG Highlights CSR Initiatives 30
Slide 32: ESG Highlights
ESG Highlights Environment 39% water recycled out of total water Water consumption decreased to 0.98 33.3% share of renewable energy in total energy mix consumption in FY 2023, up from 35.9% in FY kilolitres per bed in FY 2023 from 1.08 2022 kilolitres per bed in FY 2022 ISO 14001 certification rece
Slide 33: CSR Initiatives
CSR Initiatives Initiatives undertaken on Water Sustainability, Nutrition and Education Water Rejuvenation Support Govt. of India’s Ni-kshay Mitra Donation of bus for Delhi Police in Ghaziabad, UP Programme Public School Focus areas for FY24 and beyond: Education and Water Sustainability Education W
Slide 34: Appendix: Network structure
Appendix 2 Network structure 33
Slide 35: Network Holding Structure
Network Holding Structure (as of June 30, 2023) 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, Imm
Slide 36: 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 37: Definitions
Definitions Term Description ALOS Average Length of Stay: discharged patients stay in the hospital, basis admission and discharge time Average Revenue per Occupied Bed; Gross revenue divided by the occupied bed days; excludes revenue from Covid-19 ARPOB vaccination & related antibody tests and Max L
Slide 38: 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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