Shalby Ltd. · NSE:SHALBY
Shalby — Q2 FY2023 Earnings Presentation
39 slides from Shalby's earnings presentation, Oct 18, 2022
Slide 1: Exchange filing cover letter
October 18, 2022 Shalby/SE/2022-23/59 The Listing Department Corporate Service Department National Stock Exchange of India Ltd BSE Limited Mumbai 400 051. Mumbai 400 001. Scrip Code : SHALBY Scrip Code: 540797 Through : https://digitalexchange.nseindia.com Through : http://listing.bseindia.com Sub:
Slide 2: Investor Presentation Q2 FY2023
Investor Presentation Q2 FY2023
Slide 3: Agenda
AGENDA 01 HOSPITAL BUSINESS QUARTERLY PERFORMANCE 02 FRANCHISE BUSINESS QUARTERLY UPDATE 03 SHALBY ACADEMY QUARTERLY UPDATE 04 IMPLANT BUSINESS QUARTERLY PERFORMANCE 05 SHALBY GROUP STRATEGIC POSITIONING 2
Slide 4: Hospital Business (Q2 FY23)
HOSPITAL BUSINESS (Q2 FY23) 3
Slide 5: Hospital Business – Core Values and Strength
Hospital Business – Core Values and Strength Proven leadership in healthcare, setting up Centers Excellence of Excellence to capture massive opportunities 11 5 1,200+ Laser sharp focus on upgrading the skills of our Hospitals States Operational Beds Learning team and building people capability ensur
Slide 6: Hospital Portfolio
Hospital Portfolio Multispecialty Units (Owned and Managed) SOCE Vapi Shalby Indore Shalby Jaipur Shalby Vijay Shalby Krishna Shalby Mohali Shalby Naroda Shalby Udaipur Shalby SG Shalby Jabalpur Shalby Zynova Shalby Surat Shalby Lucknow Shalby (Mumbai) 5
Slide 7: Biggest Healthcare Corporate Group in Western and Central India
Biggest Healthcare Corporate Group in Western and Central India ➢ National Presence Existing 11 Units (2112 beds) PUNJAB 59 OPDs across 16 states ▪ Mohali – 145 beds Upcoming 2 Units (321 Beds) RAJASTHAN ▪ Jaipur – 237 beds MAHARASHTRA ▪ Mumbai (Santacruz) – 175 beds ▪ Nashik – 146 beds GUJARAT ▪ Ah
Slide 8: State-of-the-Art Medical Infrastructure Across All Units
State-of-the-Art Medical Infrastructure Across All Units 3D Neuro / Spine Cath Lab CT Machine Linear Accelerator MRI Machine Navigation For Angiography & Detecting abnormalities in the A Linear accelerator can be Radiology Equipment Enables clear visualization Angioplasty body, such as tumors, used
Slide 9: State-of-the-Art Medical Infrastructure Across All Units
State-of-the-Art Medical Infrastructure Across All Units IVUS System ECMO Machine Breast Biopsy EVH System CRRT System IVUS is an imaging It is similar to the heart- System Endoscopic Vessel CRRT is blood purification technique that uses a lung by-pass machine To check a lump or mass Harvesting syst
Slide 10: Clinical Excellence and Initiatives Across Specialties during Q2 FY23
Clinical Excellence and Initiatives Across Specialties during Q2 FY23 ▪ Heaviest ever patient, a 165 kg woman from Sudan, goes under successful knee replacement on both legs. ▪ 2 Kidney and 1 Liver Transplant performed at Shalby SG unit in Ahmedabad ▪ Difficult cardiac procedure in a patient with li
Slide 11: Sustainability Initiatives
Sustainability Initiatives ESG Mindset “We at Shalby are embracing sustainability to drive new values to our business” Community Connect • We at Shalby are committed to embrace 269+ 21+ sustainability to drive new values to our business Healthcare Camps Healthcare Talks Workplace Wellness with best
Slide 12: Shalby In News
Shalby In News 165 KG Patent Knee Replacement Surgery Organ Donation at Shalby SG Multi Organ Centre of Western India in association with Global Hospital. 11
Slide 13: Shalby In News
Shalby In News Interview of Dr Vikram Shah, CMD on Moneycontrol Interview of Shanay Shah, President on Dalal Street Industry Stories & Doctors Quotes 12
Slide 14: Shalby In News
Shalby In News Shalby Naroda Independence Day Celebrations Shalby Surat completed 5 years World Alzheimer Day World Heart Day Healthcare Camps 13
Slide 15: Shalby – Awards & Recognition
Shalby- Awards & Recognition Shalby Jaipur is recognised with Proud to share that Shalby Ahmedabad Shalby Jaipur is awarded for Esteemed award to News 18 - Lifeline Conclave Award for participated as a Medical Support “Excellence in Knee and Hip Shalby Indore at Health exemplary contribution in Emer
Slide 16: Hospital Portfolio Expansion
Hospital Portfolio Expansion Mumbai Nashik Business Model: Revenue Sharing Business Model: Revenue Sharing Asset Light Model Bed Capacity: 175 Bed Capacity: 146 Operating and Management Term: 30 + 30 years Operating and Management Term: 30 years Operationalization Year: FY 2025-26 Operationalization
Slide 17: Q2 FY2023 Performance Highlights (YoY)
Q2 FY2023 Performance Highlights (YoY) INR million Includes INR 100 mn of Vaccination and 1,830 437 218 INR 5.5 mn of 335 Covid-19 345 167 Revenue 250 1,717 20.1% 23.9% 14.6% 18.3% 9.7% 11.9% ₹ 20 mn Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Total Income International Revenue E
Slide 18: Leader in Arthroplasty with increasing focus on Multi Specialty
Leader in Arthroplasty with increasing focus on Multi Specialty Specialty Revenue Mix : Q2 FY2022 Specialty Revenue Mix : Q2 FY2023 Others, 16% Others, 13% Arthroplasty, 40% Nephrology, Arthroplasty, Nephrology, 5% 39% 3% Neurology, 5% Neurology, 5% Orthopaedic, 9% Orthopaedic, 8% Critical Care & Cr
Slide 19: Homecare Services
Homecare Services Q2 FY2023 highlights • Homecare care revenue of INR 22.45 mn in Q2 FY’23 grew by 27% yoy and 4% qoq on Total Revenue (INR MN) account of focused marketing approach, Introducing new specialty wise services, various corporate tie-ups and healthcare awareness programs Growth 22.45 21.
Slide 20: Q2 FY2023 Hospital Performance (Maturity wise)
Q2 FY2023 Hospital Performance (Maturity wise) All hospitals, at different maturity stages, continues to deliver steady performance Hospital - 10+ Years Hospital - 5-10 Years 391 844 Operational Beds Operational Beds ₹ 677 mn 40% ₹ 1,036 mn 60% Revenue Revenue Revenue Revenue from operation Contribu
Slide 21: Q2 FY2023 Performance Trends
Q2 FY2023 Performance Trends Total Revenue (INR Mn) Operating EBITDA (INR Mn) and Margin Consistently 20.1% 20.4% 21.2% 23.6% 23,9% generating 1,810 1,830 1,717 428 437 20%+ EBITDA 1,531 1,523 Margin 345 312 323 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 PBT (INR
Slide 22: Q2 FY2023 Performance Trends
Q2 FY2023 Performance Trends Robust operational performance with growth in Total Patient count q-o-q basis In Patients Count Day Care Patients Count Out-Patients Count 12,606 6,026 10,608 10,432 11,044 5,319 5,666 1,06,671 1,11,962 1,15,673 9,629 4,931 5,212 1,02,752 95,070 Q2 FY22 Q3 FY22 Q4 FY22 Q
Slide 23: Q2 FY2023 Performance Trends
Q2 FY2023 Performance Trends No of Bed Occupied Occupancy Rate* Headroom to grow further with existing 600 bed capacity without 557 49% 517 513 499 43% 45% 42% 40% additional capex Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Average Length of Stay (ALOS) Revenue b
Slide 24: Q2 FY2023 Performance Trend
Q2 FY2023 Performance Trend Total Revenue to EBITDA Consistent Healthy double digit Operating 20.1% 20.4% 21.2% 23.6% 23.9% Margin 9.7% 6.9% 6.7% 6.8% 7.3% 11.1% 12.7% 13.0% 11.2% 11.6% 1.3% 1.6% 1.5% 1.1% 1.2% 57.9% 58.4% 57.7% 57.2% 56.1% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Operative and Other
Slide 25: Q2 FY2023 Performance Highlights – Standalone
Q2 FY2023 Performance Highlights – Standalone Particulars (in Rs. Millions) Q2 FY23 Q1 FY23 QoQ Growth Q2 FY22 YoY Growth Net cash positive balance sheet to support future growth plans. Double Revenue from Operations 1,779 1,771 0.5% 1,691 5.2% digit ROCE of 17% as on H1 FY23 annualized basis Other
Slide 26: Franchise Business – SOCE (Q2 FY23)
FRANCHISE BUSINESS – SOCE (Q2 FY23) 25
Slide 27: Leveraging Expertise Through Franchise Asset Light Model Under SOCE
Leveraging Expertise Through Franchise Asset Light Model Under SOCE SHALBY ORTHOPEDIC CENTRE OF EXCELLENCE An Asset light franchise model will leverage Shalby expertise and enable to penetrate faster across pan-India FOSO Model Shalby • Franchisee is responsible for all capex Shalby Franchise System
Slide 28: Franchise Business Performance and Outlook
Franchise Business Performance and Outlook Active Centres Upcoming Centres* Location Bed capacity Mode Location Bed capacity Mode Lucknow 40 FOSO (Soft launch happened Vijay 27 Owned and Managed on Oct 11) Udaipur 20 FOSM Gwalior 35 FOSO Kanpur 35 FOSO Rajkot 30 FOSO * MOUs are signed with counterpa
Slide 29: Shalby Academy (Q2 FY23)
CO) SHALBY ACADEMY (@2 FY23) ne, SHALBY ACADEMY ll
Slide 30: Shalby Academy
Shalby Academy Well Equipped Simulation Lab Our Strengths ▪ Availability of Simulation Lab for experiential Various Categories of learning Courses ▪ Certified clinical (BLS) trainers • Up-skilling Courses for ▪ Equipped with digital LMS platform Nurses ▪ Availability of clinical in-house experts • M
Slide 31: Shalby Academy Q2 FY2023 highlights
Shalby Academy Q2 FY2023 highlights 1. More than 1093 students are registered in the various disciplines like Physiotherapy, Nursing, Students Enrolled (In Nos) Lab Technician Nutrition & Dietetic, Clinical, Paramedics, Hospital Management and Pharmacy 1,671 for various duration profram Constantly 1
Slide 32: Implant Business (Q2 FY23)
IMPLANT BUSINESS (Q2 FY23) 31
Slide 33: Background of Consensus
Diversified into Implants Manufacturing By Acquiring Consensus Orthopedics Assets USA Founded as Hayes Medical, 75% Growth in US by Background of Consensus Shalby has acquired Shalby Advanced headquartered in forming Partnership with assets, inventories and El Dorado Hills, California various distri
Slide 34: Implant Business - Focused Key Joint Demographic Markets
Implant Business - Focused Key Joint Demographic Markets Shalby Advanced Technologies plans to reach out globally in a phased manner Current Phase 1 Phase 2 Phase 3 Presence North Japan India (already soft launch) Middle East Countries East Africa America South East Asian Countries • UAE • Kenya • I
Slide 35: Implant Business - Quarterly Performance
Implant Business- Quarterly Performance Key Performance Highlights Quartey Sales Performance INR MN ▪ In Q2 FY23, recorded total revenues of INR 241 mn (July’22 to Sep’22) 262 ▪ Geographical sales mix : USA - 58% and India - 42% of the total revenue 241 ▪ Out of total US sales ▪ Knee and Hip product
Slide 36: Building An Integrated Orthopedic Solutions Ecosystem
Building An Integrated Orthopedic Solutions Ecosystem Shalby is a Leader in Joint Replacement with 15% Market Share • Performed more than 1,41,000 joint replacement surgeries since inception • Performs More than 12,000+ surgeries every year with an aim to perform 15,000+ in one year • Indian orthope
Slide 37: Q2 FY2023 Performance Highlights - Consolidated
Q2 FY2023 Performance Highlights - Consolidated Particulars (in INR Millions) Q2 FY23 Q1 FY23 Q-o-Q Growth Q2 FY22 Y-o-Y Growth Revenue from Operations 2,018 2,017 0.1% 1,816 11.1% Other Income 53 40 32.9% 28 88.4% Total Income 2,071 2,057 0.7% 1,844 12.3% Expenses COGS 1,093 1,108 (1.4)% 1,026 6.5%
Slide 38: Well Positioned to Deliver Long Term Sustainable Growth
Well Positioned to Deliver Long Term Sustainable Growth ROCE (Consolidated) • Global Leader in Orthopedics with increasing focus on Multispecialty ~2x 15.1% • The only vertically integrated Healthcare player with diversification into Implants Manufacturing with an aim to be USD 100 mn (implant sales
Slide 39: Disclaimer and Contact Details
DISCLAIMER and CONTACT DETAILS No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as