Medplus Health Services Ltd. · NSE:MEDPLUS
Medplus Health Services — Q4 FY2023 Earnings Presentation
28 slides from Medplus Health Services's earnings presentation, May 25, 2023
Slide 1: MedPlus Health Services Limited – Filing Cover Letter
MedPlusel MedPlus Health Services Limited Date: May 25, 2023 The Listing Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kuria Complex, Dalai Street, Fort, Bandra (East), Mumbai —400 051 Mumbai 400 001 Symbol: ME
Slide 2: Fourth Quarter FY2023 Investor Presentation
FOURTH QUARTER FY2023 INVESTOR PRESENTATION Corporate information Performance update Financial results MAY 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by MedPlus Health Services Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Executive Summary
Executive Summary Executive Summary: Q4FY23 1 Revenue Growth 4 Stable operating performance of mature Revenue has grown by 29.7% vs Q4 FY22 stores (>12m) Operating EBITDA: ₹ 537mn Store Level EBITDA margin: 10.3% Store Level Operating ROCE: 60.5% 2 Accelerated store expansion Addition of 265 stores
Slide 5: The MedPlus Story
The MedPlus Story Overview MedPlus caters to the healthcare and 2006 17 years c.897m+ household needs of Started in Hyderabad A Trusted Brand Bills Cut Since Inception the neighborhoods we operate in We are omni- 3,822 stores 7 552 channel: Digital and Stores States Cities neighborhood stores MedPlu
Slide 6: MedPlus – Leader In The Attractive Pharmacy Space
MedPlus – Leader In The Attractive Pharmacy Space Overview Fastest Growing Retail Segment Large Headroom to Grow 30% Pharmacy 25% 25% Food & Grocery 22% Jewellery 21% 20% Apparel 16% 16% 0% 20% 40% 60% 80% 100% 15% 14% Organized Retail Unorganized 10% 8% Better Unit Economics 5% Pharmacy: High reven
Slide 7: Cluster Based Network Enables Profitable Omni-Channel Service
Cluster Based Network Enables Profitable Omni-Channel Service Overview Stores As On Mar-23 Strong Cluster Based Network Strong network of 3,822 stores across Metros, Tier-One, Tier-Two and beyond. 3,822 stores 2- hour delivery Ability to service 100% market – acute + chronic Online only players cann
Slide 8: Scale Allows A Large Private Label Basket: 900+ SKUs
Scale Allows A Large Private Label Basket: 900+ SKUs Overview Pharma and Related Non-Pharma Pharma Over 640 products covering Chronic, Acute, OTC & Other Pharmaceutical products Non-Pharma Over 262 products covering, packaged food, baked goods, dry goods, cleaning products, cosmetics and toiletries
Slide 9: Poised for Growth
Poised for Growth Overview Key Pillars Of Growth MedPlus has an established base of operations in seven key states. Therefore, we will: Growth in existing clusters and • Further grow in cities where we have market leadership. Metro and Tier - One followed A by Tier - Two and beyond develop new clust
Slide 10: FY2023 Highlights
Results Update FY2023 Highlights ₹ 45,576m Revenue ₹ 9,999m Gross Margin • Increase by 20.6% vs FY22 • 21.9% gross margin (+0.85% vs FY22) • 13.6% private label (+0.9% vs FY22) Picture to be 1,074 Store Net Additions 15.6% yoy: Stores > 12 months change • 1,144 gross additions • 15.6% revenue growth
Slide 11: Q4 FY2023 Highlights (1/2)
Results Update Q4 FY2023 Highlights (1/2) ₹ 12,530m Revenue ₹ 2,830m Gross Margin • ₹ 2,871m increase over Q4FY22 • 22.6% gross margin (1.3% yoy, 0.4% 29.7% yoy qoq) • ₹ 627m increase over Q3FY23. 5.3% qoq • 1.1% increase in private label over Q4FY22 265 Store Net Additions Stores > 12 months • 284
Slide 12: Q4 FY2023 Highlights (2/2)
Results Update Q4 FY2023 Highlights (2/2) Revenue, ₹m Gross Margin Operating EBITDA EBITDA, ₹m 12,530 22.6% 953 11,903 11,206 22.2% Consolidated 831 9,659 9,937 21.7% 706 653 628 21.3% 3.1% 3.1% 3.2% 21.2% 2.5% 406 2.2% 371 295 283 222 12,382 22.0% 994 11,765 11,100 21.7% 846 Pharmacy 9,596 9,850 3.
Slide 13: 1,074 Stores Added In Last 12 Months
Results Update 1,074 Stores Added In Last 12 Months As On Mar-22 As On Dec-22 As On Mar-23 Presence 2,748 3,557 3,822 We are present in stores stores stores key 7 states, accounting for c.38.4% of India’s population2. The key urban centers are: Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Nagpur,
Slide 14: Stores Added In Last Quarter
Results Update 265 Stores Added In Last Quarter Q4 FY23 Openings Q4 FY23 Closures Q4 FY23 Closure Reasons 5.2 We opened 284 284 19 3 stores in Q4FY23. stores stores There were 19 closures 6.2 16 Relocation Franchisee withdrawn Average age (years) 1. Color index for pie-chart as below: Metro Tier-One
Slide 15: Young Store Network: 30% Less Than 12 Months Old
Results Update Young Store Network: 30% Less Than 12 Months Old Pharmacy: Count Pharmacy: Age Structure of Stores1 Stores 2,748 2,980 3,328 3,557 3,822 Openings 4,000 27% 30% 30% 33% 32% 265 Maintaining an 3,500 229 increasing pace of 348 store openings 3,000 13% 232 15% 16% 17% 19% 271 2,500 2,000
Slide 16: Profitable Older Stores: 12+ Months
Results Update Profitable Older Stores: 12+ Months Store Level Revenue Growth1 Store Level EBITDA Margin Store Level Operating ROCE2,3 61.0% 60.8% 15.3% 60.5% 10.3% 10.3% 60.0% 10.0% 10.9% 10.0% 7.8% 9.7% 9.5% 55.9% -8.7% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q
Slide 17: Revenue Mix: Increasing Share Of Private Label
Results Update Revenue Mix: Increasing Share Of Private Label Revenue Mix: By Product Category Revenue Mix3: By Location of Stores 2.3% 2.4% 2.2% 2.4% 2.2% Product mix 4.9% 4.6% 5.0% 5.1% 5.7% 8% 9% 9% 10% 10% 8.1% 8.1% 8.9% 8.6% 8.4% Trend of increasing share 11.1% 10.5% 22% 22% 22% 10.8% 11.0% 10.
Slide 18: Omni-channel: Profitable With Negligible Acquisition Costs
Results Update Omni-channel: Profitable With Negligible Acquisition Costs Channel Revenue Channel Delivery Pincodes1 and Delivery Hubs 740 8.0% 100% Hubs 392 391 453 583 630 Home Delivery Omni-Channel 7.0% 720 715 Our online 709 80% 2,158 presence grows 6.0% 2,014 on the back of 700 1,877 our rapid
Slide 19: Income Statement
Results Update Income Statement Snapshot of Income Statement, ₹m Q4FY23 vs. Q4FY23 vs. FY23 vs. Q4FY22 Q3FY23 Q4FY23 FY22 FY23 Q4FY22 (yoy) Q3FY23(qoq) FY22 (yoy) Revenue 9,659.1 11,903.1 12,529.8 29.7% 5.3% 37,792.8 45,575.8 20.6% Gross Margin 2,059.0 2,638.1 2,830.0 37.4% 7.3% 7,969.0 9,998.8 25.5
Slide 20: Income Statement: Business Segments
Results Update Income Statement: Business Segments Snapshot of Income Statement, ₹m Q3FY23 Q4FY23 FY23 Pharmacy Pharmacy Pharmacy Diagnostic Others Total Diagnostic Others Total Diagnostic Others Total Retail Retail Retail Revenue 11,764.7 96.9 41.5 11,903.1 12,382.3 119.3 28.3 12,529.8 45,096.6 305
Slide 21: Operating EBITDA Deep Dive
Results Update Operating EBITDA Deep Dive Operating EBITDA Bridge: From 12+ Months Stores to Consolidated, ₹m Operating EBITDA Q4FY23 19
Slide 22: Balance Sheet
Results Update Balance Sheet Snapshot of Balance Sheet, ₹m Mar-22 Dec-22 Mar-23 Assets Non Current Assets PPE and CWIP 1,823.2 2,759.8 3,122.4 Intangible assets 477.0 476.7 489.9 Right-of-use asset 5,891.6 7,511.8 8,022.0 Others 1,431.6 1,648.5 1,525.7 Total Non Current Assets (A) 9,623.4 12,396.8 1
Slide 23: Capital Productivity
Results Update Capital Productivity Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed NWC (days) 63 66 61 63 64 10.5% 9.4% 8.8% Year 1 Stores 48 47 47 47 47 114 days 6.8% inventory (on Year 1 stores 5.5% 38 39 37 revenue) 36 35 Stores Older Than 12 months 23 22 23 22 39 days i
Slide 24: Cash Management
Results Update Cash Management Cash Management, Q4FY23, ₹m Operating Cash Flow ₹ 368m Free Cash Flow ₹ -424m PBT+ Inc. in Taxes Capex Payment Interest Decrease D&A+ Int. Working of lease received in cash of Lease Capital liabilities & others and cash Liability1 equiv.3 + Others2 1. Computed as per I
Slide 25: Appendix
Appendix A. Board and key management B. Glossary 23
Slide 26: A. Board and Key Management
A. Board and Key Management Appendix Committed Board Experienced Management Team Gangadi Madhukar Reddy Anish Kumar Saraf Atul Gupta Dr. Bhaskar Reddy Dr. Surendranath Mantena Founded MedPlus and has MD at Warburg Pincus Investment partner at COO–Outlet Operations COO–MedPlus Mart led it since incep
Slide 27: B. Glossary
B. Glossary Appendix Term Description Metro: Bengaluru, Chennai (and Avadi), Hyderabad, Kolkata (and Howrah), Mumbai (and Thane) City Categorization Tier One: Ahmednagar, Baramati, Kharagpur, Nagpur, Nashik, Panruti, Pune, Ranaghat, Vijayawada, Visakhapatnam (internal) Tier Two: Hundred and Nine cit
Slide 28: MedPlus Health Services Limited
MEDPLUS HEALTH SERVICES LIMITED www.medplusindia.com COMPANY SECRETARY Manoj Kumar Srivastava cs@medplusindia.com INVESTOR RELATIONS Prasad Reddy/ Tanushree Chaurasia ir@medplusindia.com MEDIA AND PRESS ENQUIRIES marketing@medplusindia.com
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