Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (March 2024)
54 slides from Apollo Hospitals Enterprise's investor presentation, March 2024
Slide 1: Apollo Hospitals Enterprise Limited Investor Presentation March 2024
Apollo Hospitals Enterprise Limited Investor Presentation March 2024 © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 1
Slide 2: Key Highlights
Key Highlights India’s Largest Clinical Attractive Engines Strong Prioritizing Annexure Integrated Pioneers Industry of Growth Financial & ESG Healthcare Opportunity Operational System Track Record © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 2
Slide 3: India's Largest Integrated Healthcare System
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Pioneers Opportunity of Growth Operational ESG Integrated Track Record Healthcare System © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 3
Slide 4: Transforming Healthcare Delivery in India: Over 35 Years of Legacy
Transforming Healthcare delivery In India : Over 35 Years of legacy Largest Hospital Largest Offline India’s Leading Retail 3rd Largest Private Chain in India Pharmacy in India Healthcare Network Health Insurer in India 73 hospitals 6000+ stores in 1100+ cities and 283 primary clinics, 167 dental Fa
Slide 5: India's Largest Integrated Health System
India’s Largest Integrated Health System Apollo Specialty Services Apollo • Culture of innovation Hospitals CLINICAL • Clinical expertise OUTCOMES Apollo APOLLO CLINICS Pan–India • Learning Organisation Health Checks (Retail Healthcare) Hospitals One Patient, Empowered and engaged patients; fosterin
Slide 6: Largest Pan-India Hospital Chain
Largest Pan-India Hospital Chain Hospitals 73 ; Beds 10,134 Capacity Operational Hospitals Beds beds Tamilnadu Region North AHEL* (a+b) 73 10,134 9,369 20 2468 12 1656 Owned 8,710 7,945 45 Sub & JVs AP & Telangana Western Managed 6 790 790 Hospitals 11 1552 10 981 Eastern Karnataka Total (a) 51 9,50
Slide 7: Largest Omni-Channel Digital Health Offering
Largest Omni-Channel Digital Health Offering Apollo HealthCo Ltd (AHL) Apollo 247 –Digital Platform Apollo 247 –Digital Platform As at March 31, 2024 ~33Mn+ ~6.9 Lakh+ ~7,335 Chandigarh Registrations Daily Active Users Doctors 5 Uttarakhand Himachal Pradesh 61 4 Assam Punjab New Delhi Virtual Doctor
Slide 8: 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 Out-of-Hospital care • Outpatient Clinics • Diagnostics and dialysis • Day Surgery centers • Single Specialty Facilities Organizing the unorganized • Patholog
Slide 9: Snapshot Q4FY24
Snapshot Q4FY24 Healthcare Services Digital Health & Diagnostics & (Hospitals) Pharmacy Distribution Retail Health 45 Owned + 6 Managed Hospitals 6,030 Outlets 22 Ambulatory care & Birthing Centers Capacity : 9,500 Owned & Managed Beds ~16.1% Private label / Generic sales 634 Capacity and Operating
Slide 10: Clinical Pioneers
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Opportunity of Growth Operational ESG Healthcare System Pioneers Track Record © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 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 20 Robotic Advanced G4 Proton therapy 640 surgical systems Diagnostics Cyber-knife for cancer slice CT Largest minimally First MRI, CT, Pet CT in India Asia Pacific’s most advanced First in
Slide 12: Patient First Mindset
Patient First Mindset Clinical Excellence Service Excellence Execution Excellence Medically Known for Patient Care Through The Apollo Family Value for Money Clinical Excellence Service Excellence COEs Patient Care Plan Clinician Engagement Case Mix Outcomes Ward as a unit Best places to work Communi
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 Asia's Largest Healthcare Ed Tech The Apollo in Bhutan University, Chittoor 45 Specialties In partnership
Slide 15: Resulting in Higher Clinical Volumes
Resulting in Higher Clinical Volumes Pioneering in cutting edge treatment FY24 First First combined ~78,000 37,800+ 1,600+ liver transplant kidney & Liver transplant Cardiac Neuroscience Transplant2 Procedures1 Discharges First simultaneous First bilateral Minimally Kidney-Pancreas transplant Invasi
Slide 16: Attractive Industry Opportunity
India’s Largest Clinical Attractive Engines Strong Financial & Prioritizing Annexure Integrated Pioneers of Growth Operational ESG Healthcare System Industry Track Record Opportunity © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 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 The healthca
Slide 18: Infrastructure lag provides strong growth tailwinds
Infrastructure lag provides strong growth tailwinds India lags other developed and emerging economies in healthcare infrastructure Global Median : ~29 Beds per10,000 people 71 43 29 26 25 21 21 19 14 Global Average : ~16 Physicians per 10,000 people 38 30 26 23 22 23 7.4 10 8 157 Global Average : ~4
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 11% 11% Communicable diseases 09% 10% 13% 60+ years 13
Slide 20: Heal in India: Global hub for medical and wellness tourism
“Heal in India” Global hub for medical and wellness tourism HEAL IN INDIA Initiative, aims to The medical Growth in medical tourism expected Treatments mostly sought after promote Medical tourism market primarily due to (i) Technologically in India are high end treatments Value Travel valued at adva
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
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Pioneers Opportunity Operational ESG Healthcare System of Growth Track Record © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 22
Slide 23: Apollo Strategy
Healthcare Services : Pillars for Growth Inorganic Growth Winning Local Market Apollo Unlocking Operating Strengthening Centers Efficiencies Strategy Of Excellence Nurturing Clinical Talent Network Effects Nurturing Clinical Talent © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 23
Slide 24: Strengthening network across both Metros and Non-metros
Strengthening network across both Metros and Non-metros Metros: Chennai, Hyderabad, Bangalore, Mumbai, Kolkata and Delhi Non Metros (includes Tier1 & Tier2 cities) Metro Ahmedabad, Bhubaneshwar, Lucknow, Non Metro Indore Guwahati, Madurai, Trichy, Delhi Nellore,Vizag, Mysore, Nashik, Bilaspur, Karim
Slide 25: Expansion Plans
Expansion Plans Total Census Project Cost Project Nature Remarks Beds Beds (in Crs) Expected commisioning : FY25 Gachibowli, Hyderabad Greenfield - Asset Light 375 300 ₹ 370 Q4 FY25 Bangalore Brownfield 150 110 ₹ 150 Q4 FY25 Sonarpur Kolkata Hospital Asset Acquisition 220 180 ₹ 240 Q4 FY25 Commissio
Slide 26: HealthCo: Building Scale through Customer Centricity
HealthCo : Building Scale through Customer Centricity • Clinical Intelligence Engine (CIE) to empower doctors deliver better care and patients to access Monetizing PHR analytics on-demand care and CIE • Patient Health Records (PHR) to enable continuum of care; one of world’s largest PHR systems with
Slide 27: AHLL: Focused on Diagnostics & Primary Care as the Next Growth Vector
AHLL : Focused on Diagnostics & Primary Care as the Next Growth Vector Primary Care Diagnostics Specialty Care Focus on taking Healthcare Aim for Enhancing Market Share Sustained growth with synergies Closer to Communities and complete pan-India expansion to Apollo Ecosystem Network expansion via va
Slide 28: Strong Financial & Operational Track Record
India’s Largest Clinical Attractive Engines Strong Prioritizing Annexure Integrated Pioneers Industry of Growth Financial & ESG Healthcare Opportunity Operational System Track Record © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 28
Slide 29: Strong Growth in Revenues across Businesses
Strong Growth in Revenues across Businesses FY24 FY13-FY24 FY13-FY24 FY13-FY24 $2.29 billion 16% 14% 20% Consolidated Revenue1 CAGR (Consolidated Rev) CAGR (HCS incl AHLL) CAGR (Pharmacy)2 98,670 Healthcare services SAP Others 86,768 79,891 78,269 67,045 57,297 51,426 48,206 50,022 45,157 40,851 38,
Slide 30: Aided by Strong Operating Metrics
…..Aided by Strong Operating Metrics In-patient Admissions (‘000) Bed Occupancy Rate(1) % 540 569 478 Operating Beds 460 399 428 451 354 374 352 313 332 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 7,860 7,945 265 281 235 73% 73% 71% 72% 71% 68% 63% 64% 66% 68% 67% 6
Slide 31: 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 46% Health Co 39% SAP 33% 31% 31% 25% 26% 20% 21% 17% 16% 15% 19% 14% 14% 13% 11% 14% 14% 15% 15% 10% 11% 10% 9% 6% 7% 6% 3% FY 09 FY 10 FY 11
Slide 32: Consolidated Financials Q4FY24
Consolidated Financials Q4FY24 (` mio) Digital Healthcare Diagnostics & Health & ` Mio Services Retail Health Pharmacy Consol Overall Consolidated Revenue grew by 15% Distribution to ` 49,439 mio. Total Revenues 25,626 3,547 20,267 49,439 EBITDA (Pre 24|7 Cost) 5,931 357 1,625 7,913 • HCS Revenue gr
Slide 33: Consolidated Financials FY24
Consolidated Financials FY24 (` mio) Digital Healthcare Diagnostics & Health & ` Mio Consol Services Retail Health Pharmacy Distribution Total Revenues 98,670 13,653 78,269 190,592 EBITDA (Pre 24|7 Cost) 23,559 1,166 6,260 30,984 HCS Health Co AHLL margin (%) 23.9% 8.5% 8.0% 16.3% 24|7 Operating Cos
Slide 34: Consolidated Healthcare Services Performance
Consolidated Healthcare Services Performance ` Mio Q4 FY24 Q4 FY23 YoY FY24 FY23 YoY HCS Revenue grew by 14% in FY24 No of Hospitals 45 43 45 43 (Volumes grew by 5%) Operating beds 7945 7860 7945 7860 Occupancy 65% 64% 65% 64% Self pay and Insurance grew by 8% in volumes Revenue 25,626 21,946 17% 98
Slide 35: Region wise Operational Parameters Q4FY24
Region wise Operational Parameters Q4FY24 Tamilnadu Region AP, Telengana Region Karnataka Region Total (7) (1) (2) (3) (Chennai & others) (Hyderabad & others) (Bangalore & others) Particulars Q4 FY 23 Q4 FY 24 yoy (%) Q4 FY 23 Q4 FY 24 yoy (%) Q4 FY 23 Q4 FY 24 yoy (%) Q4 FY 23 Q4 FY 24 yoy (%) No.
Slide 36: Region wise Operational Parameters FY24
Region wise Operational Parameters FY24 Tamilnadu Region AP, Telengana Region Karnataka Region Total (7) (1) (2) (3) (Chennai & others) (Hyderabad & others) (Bangalore & others) Particulars FY 23 FY 24 yoy (%) FY 23 FY 24 yoy (%) FY 23 FY 24 yoy (%) FY 23 FY 24 yoy (%) No. of Operating beds 7,860 7,
Slide 37: Apollo HealthCo Financials Q4FY24
Apollo HealthCo Financials Q4FY24 Online Pharmacy Healthco ( Q4’FY 24 vs Q4’FY 23) : Offline Pharmacy ` Mio Distribution & Total Health Co Distribution o 13% growth in revenue in Q4’ FY24 vs Q4’ FY23 Apollo 247 Total Revenues 17,880 2,387 20,267 o EBITDA positive in Q4’FY24 Rs. 117 Mn vs loss of Rs.
Slide 38: Health Co Financials FY24
Health Co Financials FY24 Online Pharmacy Healthco : Offline Pharmacy ` Mio Distribution & Total Health Co Distribution Apollo 247 o Platform GMV : Rs 26,870 Mn in FY24, growth of 73% over FY23 Total Revenues 69,268 9,001 78,269 o FY24 EBITDA (Pre-ESOP) positive at Rs. 74 Mn vs losses of Rs. 1,236 M
Slide 39: AHLL Financial Performance Q4FY24
AHLL Financial Performance Q4FY24 (` mio) Q4 FY24 Clinics Diagnostics Sugar Dental Dialysis Cradles (IP) IVF Spectra (IP) Network 283 2,366 69 167 136 11 17 11 Footfalls/Day* 2,624 15,143 487 223 2,108 56 45 76 Gross ARPP (Rs.)* 2,162 731 3,021 6,502 1,633 106,847 41,202 97,016 ` Mio Diagnostics Pri
Slide 40: AHLL Financial Performance FY24
AHLL Financial Performance FY24 (` mio) FY24 Clinics Diagnostics Sugar Dental Dialysis Cradles (IP) IVF Spectra (IP) Network 283 2,366 69 167 136 11 17 11 Footfalls/Day* 2,551 14,986 492 225 1,974 54 43 74 Gross ARPP (Rs.)* 2,073 740 3,028 6,401 1,623 105,028 40,216 98,997 ` Mio Diagnostics Primary
Slide 41: Diagnostics: Key Parameters
Diagnostics : Key Parameters Gross Revenue (₹ Mn)1 EBITDA (₹ Mn)2 Operational footprint 1,239 (as of March 31, 2024) 1,122 1,169 1,040 1,031 1,075 3 940 4 5 16 816 118 15 12% 24 14% 14% 99 922 916 1,016 1,059 1,236 1,118 1,164 148 5% 7% 149 10% 168 ~330+ 717 5% 5% 75 112 Cities presence 39 51 50 in
Slide 42: Prioritizing ESG
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Pioneers Opportunity of Growth Operational Healthcare System Track Record ESG © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 42
Slide 43: Our Approach to Governance
Our Approach to Governance Board Composition (11 Directors) Key Board Committees and Features Chair: Dr. Prathap C Reddy Nomination and Stakeholders CSR and Audit Committee Remuneration Sustainability Lead Independent Director: MBN Rao Committee Relationship Committee Committee Independence Gender 1
Slide 44: Governance of Sustainability
Governance of Sustainability Our governance framework ensures that social responsibility and sustainability considerations are embedded in our decision-making process, operations and interactions with stakeholders Board-level Mechanism Accountable and Transparent Our Enterprise Risk Management (ERM)
Slide 45: Impact on Key Stakeholders
Focusing on Material Topics Consumer Related Parameters Company Related Parameters Each stakeholder constituency is Our modes of engagement Major (3) Environment Related Parameters important and means something with our key stakeholders 1 2 different for us and we remain together with the materialit
Slide 46: Our Sustainability Commitments
Our Sustainability Commitments Our Targets Our Efforts In FY 22-23, 18% of our total energy consumption was from Sourcing 25% of electricity & energy from renewable energy, signalling our efforts on green transition. We are Renewable Energy renewables by FY 24-25 building additional solar PVs and si
Slide 47: Patient Centric Care
Patient Centric Care Patient and Customer Satisfaction Accessible Healthcare and Engaged Privacy and Cybersecurity with Underserved Communities Responsible Billing practices: High level of transparency from Admissions to Subsidized Patient Funding – Partnering with Information Security Management Sy
Slide 48: 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 and
Slide 49: Caring for the Environment
Caring for the Environment Focus Areas Water Energy Waste Management Fighting water scarcity by being efficient. Third 20% reduction in energy in our Bio Waste, Biomedical Waste, party water audits are carried out to promote 18 largest hospitals usage Hazardous Waste, and Plastic Waste water conserv
Slide 50: Looking Forward
Looking Forward……. We believe our journey to become We published our 3rd a sustainable healthcare provider is Sustainability Report through continuous improvement. Sustainability is a strategic and the Business imperative for us - not a checklist Responsibility and exercise. We believe that this wil
Slide 51: Annexure
India’s Largest Clinical Attractive Industry Engines Strong Financial & Prioritizing Annexure Integrated Pioneers Opportunity of Growth Operational ESG Healthcare System Track Record © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 51
Slide 52: 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 53: IND AS 116: Impact on P&L and Balance Sheet – FY24
IND AS - 116 : Impact on P&L and Balance Sheet – FY24 AHEL Standalone (post IND AS 116) AHEL Consolidated (post IND AS 116) Balance Sheet Profit & Loss Balance Sheet Profit & Loss Revenue Revenue Right of use 12,612 Asset as of Other expenses 19,743 Right of use Asset as of 31 Mar, 2024 st 31st Mar,
Slide 54: Thank You
Apollo Hospitals Enterprise Limited THANK YOU © 2024 Apollo Hospitals Enterprise Ltd, All Rights Reserved 54
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