Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (December 2022)
51 slides from Apollo Hospitals Enterprise's investor presentation, December 2022
Slide 1: Apollo Hospitals Enterprise Limited Investor Presentation
Apollo Hospitals Enterprise Limited Investor Presentation December 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 10,006 Owned Sub & JVs 43 8,534 7,855 Tamilnadu Region North Managed 5 851 851 2512 20 10 1394 Total (a) 48 9,385 8,706 AHLL (b) 23 621 621 AP & Telangana Western AHEL (a+b) 71 10,006 9,327 10 1307 13 1632
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 December 31, 2022 757 YTD 23 ~23Mn+ ~7 Lakh+ ~6,300+ Closed 90 Registrations Daily Active Users Doctors YTD 23 Daily Consultation Chandigarh: 6 Net 667 Virtual Doc
Slide 9: Highlights Q2FY23
Highlights Q2FY23 Revenue EBITDA Healthcare 43 Owned 9,385 136,992 Services + Owned & 65% INR 51,482 / ` 21,944 Mio ` 5,428 Mio Occupancy day In-patients (Hospitals) 5 Managed Managed ARPOB1 Rev 52% 24.7% Hospitals Beds Share Margin ` 3,114 Mio ` 255 Mio Rev 7% 8.2% Diagnostics & 23 621 111 Share 1,
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 5,794 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 25% 46% 20% 21% SAP 39% 40% 17% 16% 31% 14% 15% 14% 13% 14% 14% 11% 11% 10% 19% 15% 15% 6% 10% 9% 6% 7%
Slide 30: Consolidated Financials Q3 FY23
Consolidated Financials Q3 FY23 Digital Health Healthcare Diagnostics & ` Mio & Pharmacy Consol Services Retail Health Distribution Total Revenues 21,944 3,114 17,578 42,636 EBITDA (Post Ind AS 116) (Pre 24|7 Cost) 5,428 255 1,395 7,078 Gross Debt 24,559 margin (%) 24.7% 8.2% 7.9% 16.6% 24/7 Operati
Slide 31: Consolidated Financials YTD Dec22
Consolidated Financials YTD Dec22 Digital Health & Healthcare Diagnostics & ` Mio Pharmacy Consol Services Retail Health Distribution Total Revenues 64,823 9,227 49,053 123,103 EBITDA (Post Ind AS 116) (Pre 24|7 Cost) 15,984 926 3,885 20,795 margin (%) 24.7% 10.0% 7.9% 16.9% 24/7 Operating Cost -4,6
Slide 32: Consolidated Healthcare Services Performance Q3FY23
Consolidated Healthcare Services Performance Q3FY23 Healthcare Serv Healthcare Serv Healthcare Serv Volume grew by 7% from 127,441 in Q3FY22 to Group (New & Group (Mature) Others) Group 136,992 in Q3FY23. No of Hospitals 29 14 43 Operating beds 5471 2384 7855 Revenue grew by 10% excluding covid vacc
Slide 33: Consolidated Healthcare Services Performance YTD Dec22
Consolidated Healthcare Services Performance YTD Dec22 Healthcare Serv Healthcare Serv Healthcare Serv Volume grew by 18% from 344,250 in YTD Dec 21 to Group (New & Group (Mature) Group Others) 406,890 in YTD Dec 22 No of Hospitals 29 14 43 Operating beds 5471 2384 7855 Revenue grew by 12%YoY exclud
Slide 34: Region wise Operational Parameters
Region wise Operational Parameters Tamilnadu Region AP, Telengana Region (Hyderabad Total (6) (2) (Chennai & others) (1) & others) Particulars YTD Dec 21 YTD Dec 22 yoy (%) YTD Dec 21 YTD Dec 22 yoy (%) YTD Dec 21 YTD Dec 22 yoy (%) YTD Dec 22 ARPOB in Metro cities No. of Operating beds 7,860 7,855
Slide 35: AHLL Financial Performance Q3FY23
AHLL Financial Performance Q3FY23 Q3 FY23 Clinics Diagnostics Sugar Dental Dialysis Cradles (IP) IVF Spectra (IP) Network 341 1,570 55 114 111 10 17 11 AHLL reported a revenue drop in Q3 Footfalls/Day* 2,819 11,506 457 190 1,718 52 31 73 FY23 on YoY basis due to decline of Gross ARPP (Rs.)* 1,842 77
Slide 36: AHLL Financial Performance YTD Dec22
AHLL Financial Performance YTD Dec22 YTD Dec 22 Clinics Diagnostics Sugar Dental Dialysis Cradles (IP) IVF Spectra (IP) AHLL reported a revenue drop in YTD FY23 on Network 341 1,570 55 114 111 10 17 11 YoY basis due to decline of Covid Vaccination Footfalls/Day* 3,278 12,069 478 205 1,614 47 32 75 R
Slide 37: Diagnostics: Key Parameters
Diagnostics : Key Parameters Gross Revenue (INR Mn)1 Operational footprint EBITDA* (INR Mn)2 (as of Dec 31, 2022) 1,087 1,040 922 940 ~200 816 118 18% Cities presence 413 24 99 14% in India 358 12% 922 916 162 152 717 129 # 564 675 3% 3% 95 22 31 Labs Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22*
Slide 38: Health Co Financials Q3 FY23
Health Co Financials Q3 FY23 Online Pharmacy Offline Pharmacy Total Health ` Mio Distribution & o Q3 delivered GMV : Rs 543 cr (85% higher from Q2 FY23). New Distribution Co Apollo 247 business opportunities created around consultation - Hospital Total Revenues 15,811 1,767 17,578 IP&OP contributing
Slide 39: Health Co Financials YTD Dec22
Health Co Financials YTD Dec22 Online Pharmacy Offline Pharmacy Total Health ` Mio Distribution & Distribution Co o Digital platform delivered GMV : Rs 1,052 cr (YTD Dec 22) Apollo 247 Total Revenues 44,499 4,554 49,053 o Combined Pharmacy platform business reported revenue of EBITDA (Post Ind AS 11
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 Hospitals (100% Ownership) Location Subsidiaries Location Description AHEL Ownership Chennai Main Chennai Material Subs ACI - Chennai Chennai Apollo Health Co limited India Digital Omni-Channel Healthcare services Platform 100.00% Tondiarpet - Chennai Chennai A
Slide 50: IND AS 116: Impact on P&L and Balance Sheet – YTD Dec22
IND AS - 116 : Impact on P&L and Balance Sheet – YTD Dec22 ` Mio AHEL Standalone (post IND AS 116) AHEL Consolidated (post IND AS 116) Balance sheet Profit & Loss Balance sheet Profit & Loss 5,426 Revenue 11,750 Revenue Right of use Asset Right of use Asset as of Other expenses 620 as of Other expen
Slide 51: Thank you !
Thank you ! 51
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