Fortis Healthcare Ltd. · NSE:FORTIS
Fortis Healthcare — Q2 FY2013 Earnings Presentation
37 slides from Fortis Healthcare's earnings presentation, November 2012
Slide 1: Fortis Healthcare Investor Presentation – Q2 FY 2013
November 2012 Fortis Healthcare Investor Presentation – Q2 FY 2013
Slide 2: Disclaimer
Disclaimer This presentation may not be copied, published, distributed or transmitted. The presentation has been prepared solely by the company. Any reference in this presentation to “Fortis Healthcare Limited” shall mean, collectively, the Company and its subsidiaries. This presentation has been pr
Slide 3: Fortis: An Overview
Fortis : An Overview Amongst the fastest growing integrated Vision : “To become a leading integrated healthcare services player in Asia” healthcare delivery service provider in Asia Presence across 10 countries with a population base of over 1.5 billion Vision for Integrated Healthcare “Patients fir
Slide 4: Our Healthcare Businesses across Asia
Our Healthcare Businesses across Asia 76 Healthcare ~ 23,000 Employees Facilities ~ 194 Day Care Specialty Centers ~ 12,000 Beds >240 Diagnostics Laboratories >4,000 doctors ~ 600 Primary Care centers 4
Slide 5: Our Business Model
Our Business Model Multiple Country Multiple Vertical Presence Presence • Focus on the Asian • Primary Care Healthcare region • Secondary Care /Day • Emerging & select Care Specialty developed markets in • Tertiary Care Asia Integrated • Quaternary Care Healthcare • Diagnostics Company Clinical Exce
Slide 6: Presence across the Value Chain
Presence across the Value Chain Low Quaternary Care /Super Specialty Services Tertiary Care Patient Traffic Services Secondary Care / Day Care India, Singapore, Hong Kong* Specialties India, Vietnam, Mauritius, Sri Lanka, Hong Kong* India, ANZ, Hong Kong, Vietnam Primary Care Services Hong Kong Hong
Slide 7: Discussion Points
Discussion Points Highlights for the Quarter Financial Highlights – Q2 FY2013 India Business Performance International Business Performance An Asset Light Strategy – The Religare Health Trust* * Refer specific disclaimer on slide 2 7
Slide 8: Highlights for the quarter
Highlights for the quarter Third consecutive quarter of improved operating performance on a consolidated basis. Continuing healthy operating performance in both the India & International businesses. − International business shows healthy growth momentum. − India hospital business sees steady perform
Slide 9: Highlights for the quarter
Highlights for the quarter Concept launch of Fortis Memorial Research Institute (FMRI), Gurgaon in October- a state of the art multi specialty quaternary care facility with approx. 450 beds in Phase 1. Collaboration with an industry leader in the area of global shared services to target a higher lev
Slide 10: Diversified Geographic & Vertical Presence
Diversified Geographic & Vertical Presence Geography wise Revenue Mix Segment wise Revenue Mix Singapore, Vietnam, Dubai, 2% 5% 0.3% Speciality/ Day Care Hong Hospitals, centers, Kong, 16% 43% India, 48% 32% Primary Care, 13% Australia/ Diagnostic New s, 13% Zealand, 28% Q2FY 13 Revenues of Rs 1,493
Slide 11: Group Financial Highlights - Q2 FY13 vs Q2 FY12
Group Financial Highlights - Q2 FY13 vs Q2 FY12 Rs Cr 1,493 1,600 143% Consolidated Revenues at Rs 1,493 Cr, + 143%. 1,200 India Business – Rs 724 Cr, + 18% 614 800 International Business – Rs 770 Cr 400 0 Consolidated Operating EBITDA at Rs 204 Cr, +123% Q2FY12 Q2FY13 India Business – Rs 100 Cr, +
Slide 12: Group Financial Highlights - Q2 FY13 vs Q1 FY13
Group Financial Highlights - Q2 FY13 vs Q1 FY13 Rs Cr 2,000 6% 1,493 Consolidated Revenues at Rs 1,493 Cr, + 6%. 1,600 1,409 India Business – Rs 724 Cr, + 8% 1,200 International Business – Rs 770 Cr, +4% 800 400 Consolidated Operating EBITDA at Rs 204 Cr, +13% Q1FY13 Q2FY13 Consol Revenue India Busi
Slide 13: Group Financial Highlights - H1 FY13 vs H1 FY12
Group Financial Highlights - H1 FY13 vs H1 FY12 Rs Cr 2,903 164% 2,800 Consolidated Revenues at Rs 2,903 Cr, + 164%. 2,200 India Business – Rs 1,392 Cr, + 27% 1,600 1,099 International Business – Rs 1,511 Cr 1,000 400 Consolidated Operating EBITDA at Rs 388 Cr, +147% H1FY12 H1FY13 Consol Revenue Ind
Slide 14: Consolidated P&L: Q2 FY13
Consolidated P&L: Q2 FY13 Q2FY13 Q2FY12^ Q1FY13 QoQ QotQ Total Consol Total Consol Total Consol Particulars Growth Growth (Rs Cr.) (Rs Cr.) % (Rs Cr.) % Operating Revenue 1,493 614 143% 1,409 6% Direct Costs 262 158 66% 256 2% Employee Costs 481 114 320% 473 2% Other Costs 546 250 119% 499 9% Operat
Slide 15: Group Business: Q2FY13 vs Q2 FY12
Group Business: Q2FY13 vs Q2 FY12 Q2FY13 Q2FY12 India India International India Total Total Consol Growth Business Business Business Business Consol Particulars Growth (Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.) % % Operating Revenue 724 770 1,493 614 614 143% 18% Operating EBITDA 100 104 204 92 92
Slide 16: Group Business: Q2FY13 vs Q1 FY13
Group Business: Q2FY13 vs Q1 FY13 Q2FY13 Q1FY13 India International India International Total Total Consol Growth Business Business Business Business Consol Particulars (Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.) % Operating Revenue 724 770 1,493 669 741 1,409 6% Operating EBITDA 100 104 2
Slide 17: Group Consolidated Balance Sheet – 30th September 2012
Group Consolidated Balance Sheet – 30th September 2012 Balance Sheet Rs Crore Shareholder’s Equity* 4,260 Foreign Currency Convertible Bonds (FCCB’s) 528 Preference Capital 1,385 Debt 5,536 Total Capital Employed 11,709 Net Fixed Assets (including CWIP of Rs 614 Crore) 3,367 Goodwill 6,793 Investmen
Slide 18: India Business Performance – Q2 FY13
India Business Performance – Q2 FY13 18
Slide 19: India Business - Financial Snapshot
India Business - Financial Snapshot Rs Cr 18% Q2FY 13 – Consolidated 800 724 Operating Revenue - Rs. 724 Cr 18% 18% 614 Hospital business -Rs. 573 Cr 18% 573 Diagnostics business -Rs. 150 Cr (Net) 600 486 Statutory Q2FY12 Q2FY13 Occupancy 76% 78% 400 ARPOB (Annualized - Rs. 89 100 Lacs) ALOS (Days)
Slide 20: India Hospital Business
India Hospital Business Rs Cr 600 573 Operating revenue at Rs 573 Cr, +18% 486 16% 450 15.6% Operating EBITDA margins at 13.2%. 13.2% 12% 300 8% Excluding initial start up costs operating EBITDA 150 4% margins at 14.1% - 0% International patient revenues for the quarter Q2FY12 Q2FY13 stood at Rs 43.
Slide 21: India Diagnostics Business
India Diagnostics Business Rs Cr Operating revenues at Rs 150 Cr 150 150 16% 128 16.1% Continuing uptrend in operating EBITDA 120 12% 12.2% 90 margins to 16.1% ( Q1 FY13 - 13.9%) 8% 60 4% Current network strength spans approx. 240 30 - 0% labs and >1200 collection centers. Q2FY12 Q2FY13 Rs Cr Revenu
Slide 22: India Business – Q2FY13 Consolidated Profit and Loss
India Business – Q2FY13 Consolidated Profit and Loss Q2FY13 Q2FY12 Hospital Diagnostics Hospital Diagnostics Total Consol Total Consol Growth Business Business* Business Business* Particulars (Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.) (Rs Cr.) % Operating Revenue 573 150 724 486 128 614 18% Operat
Slide 23: Specialty Revenue Split – India Hospital Business
Specialty Revenue Split – India Hospital Business Q2FY12 Q2FY13 OPD & OPD & Others, Others, Cardiac 12% Cardiac Multi 12% Sciences, 35% Multi Sciences, 35% Specialities, Specialities, 22% 20% Pulmonology, Pulmonology, 1% 1% Ortho, 8% Oncology, 4% Ortho, 8% Oncology, 4% Gastro, 4% Neuro, 7% Gastro, 4
Slide 24: International Business Performance
International Business Performance 24
Slide 25: International Business Performance - Q2 FY13
International Business Performance - Q2 FY13 Rs Cr International revenues contributed ~58.5 % 800 770 554 to overall revenues. 600 400 Consistent uptrend in revenue and EBITDA 200 margins for all businesses - Operational performance .i.e. EBITDA Q2FY12 Q2FY13 Rs Cr margins at 13.6% (12.5% in Q1 FY13
Slide 26: Dental Corporation, Australia
Dental Corporation, Australia Rs Cr 426 20% Revenues of Rs 426 Cr with EBITDA margin at 400 315 18% 16% 18% 300 15.9% 12% 200 Added 4 practices during the quarter 8% 100 4% Total ~182 practices currently 0 0% Q2FY12 Q2FY13 ~ 570 principal & associated dentists Revenue EBITDA margin Emphasis on impro
Slide 27: Quality Healthcare, Hong Kong
Quality Healthcare, Hong Kong Rs Cr 12% 234 Q2 revenues at Rs 234 Cr with 9.3% EBITDA 225 172 9.3% 8% margins 150 8.5% Key verticals of western medicine (~ 85% of 75 4% revenues) and diagnostics & imaging continue to 0 0% exhibit buoyant growth Q2FY12 Q2FY13 Revenue EBITDA margin Rs Cr Strengthening
Slide 28: Hoan My, Vietnam
Hoan My, Vietnam Rs Cr 30% Q2 revenues at Rs 67 Cr with 21.8% EBITDA 67 60 25% margins 21.8% 20% 38 40 15% Stable operating performance across majority 17.1% 10% 20 of the facilities 5% 0 0% Building further on the cardiac specialty by Q2FY12 Q2FY13 leveraging Fortis’s clinical capabilities through
Slide 29: RadLink, Singapore
RadLink, Singapore Rs Cr Q2 FY13 revenues at Rs 30 Cr with 22.8% 30 30 26 24% EBITDA margin 22.6% 22.8% 20 16% Outsourced imaging work begins contributing 10 8% to revenues. More opportunities being explored - 0% with reputable large hospitals. Q2FY12 Q2FY13 Revenue EBITDA margin Renewed focus on ma
Slide 30: Fortis Colorectal Hospital (FCH), Singapore
Fortis Colorectal Hospital (FCH), Singapore Formally launched on 31st July 2012, the super specialty hospital for colorectal disease is the first and only such hospital in SE Asia. FCH has witnessed an encouraging start since its commissioning. Introduced advanced robotic surgery for the treatment o
Slide 31: An Asset Light Strategy: The Religare Health Trust
AN ASSET LIGHT STRATEGY THE RELIGARE HEALTH TRUST* * Refer specific disclaimer on slide 2 31
Slide 32: Strategic Rationale for the Business Trust
Strategic Rationale for the Business Trust Rationale Advantages Provides a perpetual source of long term capital Long Term Finance Vehicle Provides visible valuation and shareholding in a listed entity .i.e. creates a liquid instrument Proceeds from listing to be utilized to reduce overall debt of t
Slide 33: Initial Portfolio
Initial Portfolio Initial portfolio comprises 11 Clinical establishments including specific out-patient and day care medical and healthcare services and radiology and imaging diagnostic services, 4 Greenfield clinical establishments and 2 operating hospitals. (1) Asset Type of Medical Care Operation
Slide 34: Key terms of Hospital and Medical Services Agreements (HMSA)
Key terms of Hospital and Medical Services Agreements ( HMSA) (RHT) The RHT .i.e. HSCo to maintain and operate Hospital Services Company (“HSCo”) the Clinical Establishments to allow Fortis .i.e. Earnings FOC to run a full fledged hospital for providing Ownership Ancillary healthcare services Servic
Slide 35: Key terms of Hospital and Medical Services Agreements (HMSA)
Key terms of Hospital and Medical Services Agreements ( HMSA) Term of Agreement 15 years with option to extend by another 15 years by mutual consent Base Service Fee Fixed quarterly payments increasing by 3% at the beginning of each financial year* Service Fee Variable Service Fee 7.50% of the opera
Slide 36: Summary
Summary Robust revenue growth with a sequentially improving operational performance in both India and International businesses Strengthened Balance Sheet with the capital raising from the listing of the Religare Health Trust. Proceeds to be utilized for de-leveraging Emphasis on further de-leveragin
Slide 37: Thank You
Thank You... 42 Fortis