Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Investor Presentation (November 2021)
38 slides from Max Healthcare Institute's investor presentation, Nov 15, 2021
Slide 1: Investor Presentation
Investor Presentation November 2021
Slide 2: 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 3: Content
Content Company Overview 04 Key Growth Drivers 13 Financial Highlights 26 Appendix 30 3
Slide 4: Company Overview
By MAX Healthcare Company Overview
Slide 5: Max Healthcare: India's Second Largest Hospital Chain
Max Healthcare: India’s Second Largest* Hospital Chain NCR 280 17 ~3,400 ~85% Shalimar Bagh Facilities Bed capacity Beds in metros 540 402 378 BLK Patparganj Vaishali Shareholding structure** Lajpat Panchsheel1 Nagar1,2 250 521 Noida1 Top Public investors 72 (>1% shareholding) includes - Saket3 Smar
Slide 6: 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 7: Journey so far
Journey so far Dr. B L Kapur Memorial Dr. Balabhai Nanavati • Radiant-Max Healthcare merger Hospital, Rajendra Hospital, Mumbai(1) and listing on BSE and NSE Place(1) • Discontinuation of Max Multi Specialty Centre, Pitampura 2000 2009 2014 2020 2021 • Raised INR 1,200 Cr equity 2016 through Qualifi
Slide 8: Leading clinically comprehensive hospital chain with excellent research and academics foundation
Leading clinically comprehensive hospital chain with excellent research and academics foundation Annual run rate of Complex procedures performed High end quaternary care facilities Robotics Cardiac Neuro Orthopedic Oncology Transplants(1) surgeries procedures(2) surgeries(3) surgeries(4) surgeries(5
Slide 9: 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 10: 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 Delhi NCR captures highest proportion of Key hubs from domestic hinterland in North been growing India’s foreign medical to
Slide 11: Best in class performance parameters (H1 FY22)
Best in class performance parameters (H1 FY22) ARPOB(1) Occupancy (INR/OBD) (‘000) (%) 78% 55 72% 50 50 65% 67% 66% 68% 65% 48 44 41 41 55% 56% 38 40 Operating parameters Max Healthcare Apollo Hospitals Fortis Healthcare Max Healthcare Apollo Hospitals Fortis Healthcare (Hospital Business) (Hospital
Slide 12: Distinguished Board and a dynamic management team
Distinguished Board and a dynamic management team Distinguished Board of directors Experienced and dynamic management team Mr. Yogesh Sareen Col. Binu Sharma Mr. Abhay Soi Senior Director – Nursing Chairman and Managing Director Senior Director & Chief Financial Officer Ms. Vandana Pakle Mr. Prashan
Slide 13: Key Growth Drivers
By MAX Healthcare Key Growth Drivers
Slide 14: 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 INR ~378 Cr in H1 FY22 Strong financial profile to support expansion plans • 2,300+ beds addition via brownfield
Slide 15: Strong cash flow and balance sheet to fund future growth plans
1 Strong cash flow and balance sheet to fund future growth plans • Strong revenue growth driven by increasing health insurance penetration, better patient mix, increasing ARPOB, growth in medical tourism and focus on tower specialties Strong and growing cash • EBITDA growth faster than revenue growt
Slide 16: 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% 34% 31% in the next 3 years, driven by - 37% – Steady pace of organic growth in Self Pay, TPA and corporate 2% 2% channels, and 5% – Return of International m
Slide 17: Existing valuable land bank to enable addition of 3,300+ beds
3.1 Existing valuable land bank to enable addition of 3,300+ beds via brownfield & Greenfield expansion (Amount In INR Crores ) # of Likely construction Likely commencement of FY28 & FY22 FY23 FY24 FY25 FY26 FY27 beds commencement by operations onwards Max Shalimar Bagh, Commenced in Sep 100 H2FY24
Slide 18: Saket Complex has potential to be South Asia's largest private integrated healthcare complex
3.1 Saket Complex has potential to be South Asia’s largest private integrated healthcare complex with 2,300+ beds Saket Complex – Current status • Plans to create 2,300+ beds contiguous medical hub spread over 23 acres of land in the heart of our national capital in South Delhi • This will be enable
Slide 19: Nanavati Max Hospital set to be one of the largest private quaternary care complexes
3.1 Nanavati Max Hospital set to be one of the largest private quaternary care complexes in Mumbai with ~770 beds Nanavati Max Hospital – Future plans • Plans to add ~440 net beds spread over 3.9 acres of land in the iconic Nanavati Max Hospital located in the heart of Mumbai – Addition of ~339 beds
Slide 20: Max Hospital to set up 1,000+ hospital beds in the heart of Gurugram
3.1 Max Hospital to set up 1,000+ hospitals beds in the heart of Gurugram Gurugram – Land Parcel (Sector 53) • Plans to create ~1,000 beds on land parcels spread over ~11.4 acres at most prime location in Gurugram, Haryana 500 beds – ~6.11 acres plot in sector 53 is at Golf course road, is in midst
Slide 21: Strengthen existing network through asset light O&M arrangements and opportunistic greenfield projects
3.2 Strengthen existing network through asset light O&M arrangements and opportunistic greenfield projects Plans to operationalise ~1,000 beds each through asset light O&M arrangements and greenfield projects O&M agreement ILLUSTRATIVE Max Healthcare Partner / REIT Operation and Construction and man
Slide 22: 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 Organised diagnostics player to grow faster than overall diagnostic Industry driven by consolidation Indian diagnostic Industry market size Indian diagnostic Industry mix by type of
Slide 23: 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 24: Digital platform enabling best-in-class omnichannel healthcare experience
5 Digital platform enabling best-in-class omnichannel healthcare experience Underlying principles New age patient experience Hyper-personalised patient experience Real-time ultra reliable low latency video consult Hyper-personalised pre-hospital and in-hospital services for Integrated data / vie
Slide 25: Strong track record of successful acquisitions
6 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 26: Financial Highlights
By MAX Healthcare Financial Highlights
Slide 27: Financial performance snapshot
Financial performance snapshot Figs in INR Cr FY19 FY20 FY21 H1 FY22 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue (incl. movement in unbilled) 3,920 4,356 3,881 2,819 Net revenue 3,599 100.0% 4,023 100.0% 3,629 100.0% 2,675 100.0% Direct costs 1,566 43.5% 1,715 42.6% 1,508 41.6% 1,0
Slide 28: Memorandum Profit & Loss Consolidation sheet of Network Financials for H1 FY22
Max Healthcare: Memorandum Profit & Loss Consolidation sheet of Network Financials for H1 FY22 MHIL & its Partner Healthcare Facilities ("PHF") Financials subsidiaries & (IGAAP Unaudited)* Silos MHC Network Eliminations (Consolidated) (INR Cr) & (Certified by an Ind AS Balaji GM Modi Devki Devi IND
Slide 29: Thank You
By MAX Healthcare Thank You
Slide 30: Appendix
Appendix 1. Covid-19 Response 2. Network structure 30
Slide 31: Appendix: Covid-19 Response
Appendix 1 Covid-19 Response 31
Slide 32: Covid-19 Update (1/2)
Covid-19 Update (1/2) Key contributions* : Our response : First private hospital to offer a dedicated facility in Delhi for Covid-19 care Infrastructure One of the first private sector labs to start Covid-19 testing support ~45 ~7,30,000 ~20,10,000 Operationalised one of the largest Covid-19 vaccina
Slide 33: Covid-19 Update (2/2)
Covid-19 Update (2/2) Post sharp fall in occupancy rate at the start of first wave of Covid-19 at the end of Mar’20, the overall occupancy steadily Occupancy (%) rose back to normal levels in Q3 FY21 87 85 77 79 79 71 79 81 In Jan’21, occupancy decreased to ~66% levels with decline in 72 66 66 69 75
Slide 34: Appendix: Network structure
Appendix 2 Network structure 34
Slide 35: Network Structure
Network Structure Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Medical Service Agreement with Max Panchsheel Society Immigration centre (Lajpat Nagar) Max Saket (West) MHIL Devki Devi Society SBUs (MaxLab, Max@Home) (Max Saket East, Immigration centre (Mohali) Onco
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 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 38: About us
About us Max Healthcare Institute Limited (MHIL) is India’s leading provider of healthcare services. For further information, It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education. please contact: For more information, visit MHIL h
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