Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Bank of America - 2024 India Conference
43 slides from Max Healthcare Institute's conference presentation, May 28, 2024
Slide 1: Schedule and presentation of Investor Conference
May 28, 2024 Listing Department, Listing Department, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai – 400 051 Mumbai – 400 001 Symbol: MAXHEALTH Scrip Code: 543220 Sub.: Schedul
Slide 2: Investor Presentation
Annexure Investor Presentation May 28, 2024
Slide 3: 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 4: Content
Content Company Overview 04 Key Growth Drivers 14 Financial Highlights 24 Appendix 31 3
Slide 5: Company Overview
By MAX Healthcare Company Overview
Slide 6: Max Healthcare: India's second largest hospital chain
Max Healthcare: India’s second largest* hospital chain in terms of revenue, EBITDA and market capitalisation Current capacity ~4,000 beds 19 ~74% ~75% NCR Facilities Beds in metros FY24 Occupancy 402 Shalimar Bagh Eqova 516 402 387 BLK Patparganj Vaishali 23% 44% ~35% Revenue CAGR^ EBITDA CAGR^ FY24
Slide 7: 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 8: Journey so far
Journey so far Executed O&M Agreement Dr. B L Kapur Memorial Dr. Balabhai Nanavati • Radiant-Max Healthcare merger with Muthoot Hospitals Hospital, Rajendra Hospital, Mumbai(1) and listing on BSE and NSE Pvt. Ltd. in Dwarka, Delhi Place(1) • Discontinuation of Max Multi for 300+ beds (our first Spec
Slide 9: Leading clinically comprehensive hospital chain
Leading clinically comprehensive hospital chain with strong focus on research and academics High end Complex procedures performed quaternary care facilities Robotic Cardiac Neuro Orthopedic Oncology Transplants(1) surgeries procedures(2) surgeries(3) surgeries(4) surgeries(5) FY24 Annual Count 1,200
Slide 10: Dominant presence in the most attractive markets (1/2)
Dominant presence in the most attractive markets (1/2) Low bed density, higher per capita income, higher ARPOB and rising insurance penetration make Delhi and Mumbai attractive avenues for growth High demand-supply gap in Delhi NCR & Mumbai… …coupled with rising insurance penetration Total beds per
Slide 11: 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 18 company & partner-owned Patient Assistance been growing Centres (PACs) across 15 countries Company-owned PACs Partner-ow
Slide 12: Strategy going forward
Strategy going forward Build on Optimise Existing Clinical Expertise Infrastructure Attract best-in-class talent Payor mix, Capacity to focus on industry Utilisation, ALOS and leading patient outcomes Procedure Mix Focus on Capital Expand Bed Light Adjacencies Capacity Max Lab and Brownfields and Ma
Slide 13: Best in class performance parameters
Best in class performance parameters ARPOB(1) Occupancy (INR/OBD) (‘000) (%) 76 67 75% 76% 75% 59 59 62 57 61 63% 64% 65% 63% 67% 65% 55 52 55 61% 59% 62% 45 48 Operating parameters Max Healthcare Medanta Apollo Hospitals* Fortis Healthcare Max Healthcare Medanta Apollo Hospitals* Fortis Healthcare
Slide 14: Distinguished Board and dynamic management team
Distinguished Board and dynamic management team Distinguished Board of Directors Mr. Abhay Soi Ms. Amrita Gangotra Mr. Anil Bhatnagar Mr. Kummamuri Chairman and Managing Technology Leader & Former Senior Lawyer & Arbitrator Narasimha Murthy Director member of Exec. Mgmt at Chartered Accountant Bhart
Slide 15: Key Growth Drivers
By MAX Healthcare Key Growth Drivers
Slide 16: Strong financial profile to support future growth
Multiple avenues for future growth • Focus on tower specialities & case mix Optimising Existing 1 2 Infrastructure • Increase utilization & improve process efficiencies Strong cash generation from • Optimize payor mix operations INR 1,336 Cr in FY24 3.1 Brownfield • ~2,600 beds addition via brownfie
Slide 17: Growth opportunity in existing facilities
2 Growth opportunity in existing facilities Optimising payor mix Bed share • Push for reduction in institutional business in order to cater to demand from preferred channels, driven by - 31.3% 29.2% 28.6%* 36.5% 34.2% – Steady pace of organic growth in Self Pay, TPA and 5.0% 5.5% corporate channels,
Slide 18: Existing valuable land bank to enable addition of 5,000+ beds
3 Existing valuable land bank to enable addition of 5,000+ beds, with ~3,300 beds coming over next 4 years Indicative timelines for completion of expansion projects^ Lucknow, Gomti Nagar ~9,800 Dwarka, South-west Delhi Gurugram## 1,950 Saket Complex (Smart) Mohali 500 Nanavati Hospital* Saket Comple
Slide 19: Ongoing Expansion Projects
3 Ongoing Expansion Projects Nanavati – 241 beds in Phase I Saket Complex (Max Smart) – 375 beds Saket Complex (Vikrant) – 415 beds in Phase I Max Smart Vikrant Saket (East & West) • Total BUA: ~7.5 lakh sft. • Total BUA: ~5.0 lakh sft. • Total BUA: ~7.1 lakh sft. • Building configuration: 3 Basemen
Slide 20: Snapshot of recent inorganic transactions
3 Snapshot of recent inorganic transactions Sahara Hospital, Lucknow Alexis Hospital, Nagpur Type of expansion Acquisition (BTA) Acquisition (SPA) INR 993 Cr (incl. cost of land registration, payment to financial 395 Cr (incl. cost of land and registration), financed through a Transaction value cred
Slide 21: Strong track record of successful acquisitions
3 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 spend on brownfield and greenfield expansions Case st
Slide 22: Develop asset light adjacencies: Max Lab
4 Develop asset light adjacencies: Max Lab – Non-captive pathology SBU Operational footprint Organized diagnostics players to grow faster than overall Diagnostic industry (as of Mar. 31, 2024) India Diagnostic market to see steady growth Indian Diagnostic Industry mix by type of providers (INR Bn) 3
Slide 23: Develop asset light adjacencies: Max@Home
4 Develop asset light adjacencies: Max@Home – Amongst one of the largest homecare providers in the country Indian home healthcare is under-penetrated with only ~3.6% of total health spending on home Growth Drivers healthcare vis-à-vis ~8.3% in the US Home healthcare solutions ~40% Indian home health
Slide 24: Max MyHealth – Proprietary digital platform
5 Max MyHealth – Proprietary digital platform enabling best-in- class omnichannel healthcare experience ‘Max MyHealth’ offering new age experience for patients and doctors 88.5 Monthly Active Users ('000s) ~5.7 lac Over 7X Patient registrations growth till date 10.9 88,000+ Monthly Active Users Depl
Slide 25: Financial Highlights
By MAX Healthcare Financial Highlights
Slide 26: Notes to Network Consolidated Financials
Notes to Network Consolidated Financials 1. Max Healthcare Institute Limited (“MHIL”), its subsidiaries and deemed separate entities (i.e. silos for managed healthcare facilities) constitute MHIL Group under IND AS 110. MHIL Group also has long-term contracts with certain societies, who own and oper
Slide 27: Network P&L Statement: Q4 FY24
Network P&L Statement: Q4 FY24 Figs in INR Cr Q4 FY23 Q3 FY24 Q4 FY241 Amount % NR Amount % NR Amount % NR Gross revenue 1,637 1,779 1,890 Net revenue 1,551 100.0% 1,689 100.0% 1,800 100.0% Direct costs 605 39.0% 650 38.5% 707 39.3% Contribution 947 61.0% 1,038 61.5% 1,093 60.7% Indirect overheads2
Slide 28: Network Profitability: Annual Trend
Network Profitability: Annual Trend Figs in INR Cr FY21 FY22 FY23 FY24 Amount % NR Amount % NR Amount % NR Amount % NR 1 Gross revenue 3,881 5,509 6,236 7,215 Net revenue 3,629 100.0% 5,218 100.0% 5,904 100.0% 6,849 100.0% Direct costs 1,508 41.6% 2,103 40.3% 2,304 39.0% 2,675 39.1% Contribution 2,1
Slide 29: Memorandum Consolidation of Network P&L: FY24
Memorandum Consolidation of Network P&L: FY24 Figs in INR Cr MHIL & its Partner Healthcare Facilities ("PHF") Financials MHC Network subsidiaries & Eliminations Silos (IGAAP Audited)* (Consolidated) & (Certified by an Ind AS Balaji GM Modi Devki Devi IND AS Adjustment (2) ICA) Audited Society Societ
Slide 30: Network Balance Sheet
Network Balance Sheet1 (Includes Managed and Partner Healthcare Facilities) Figs in INR Cr Mar 2023 Particulars Sep 2023 Mar 2024 8,070 Shareholders' Equity (incl. corpus & other equity) 8,623 9,295 682 Gross Debt2 606 1,177 3 440 Deferred / Contingent Consideration Payable 463 461 150 Put Option Li
Slide 31: Thank you
By MAX Healthcare Thank you
Slide 32: Appendix
Appendix 1. ESG & CSR Updates 2. Payor & Speciality Profiles, Network Structure, IT & HR 31
Slide 33: Appendix 1: ESG Highlights, CSR Initiatives
Appendix 1 ESG Highlights CSR Initiatives 32
Slide 34: ESG Highlights
ESG Highlights Environment 39% water recycled out of total water Water consumption decreased to 0.98 33.3% share of renewable energy in total energy mix consumption in FY 2023, up from 35.9% in FY kilolitres per bed in FY 2023 from 1.08 2022 kilolitres per bed in FY 2022 ISO 14001 certification rece
Slide 35: CSR Initiatives
CSR Initiatives Initiatives undertaken on Education CMD and DG Delhi Prisons inaugurating Press coverage in Times of India & Max Medical Scholarship programme the Max Skill Training for Sustainable Dainik Jagran for 100 students every year from EWS Livelihood at Tihar Jail Focus areas for CSR: Educa
Slide 36: Appendix 2
Appendix 2 Payor & Speciality Profiles Network structure IT Infrastructure HR Initiatives 35
Slide 37: Payor & Speciality Profiles
Payor & Speciality Profiles FY24 Payor Mix (revenue share) FY24 Speciality Mix Institutional# Others +20% Y-o-Y OBGY and pediatrics 9.2% Oncology* 18.1% Self Pay +7% Y-o-Y Liver & biliary 2.6% sciences 25.0% 3.7% 33.7% Pulmonology International 3.8% +23% Y-o-Y MAS and 9.1% Revenue from general 5.1%
Slide 38: Network Holding Structure
Network Holding Structure (as of March 31, 2024) Balaji Society (Max Patparganj) Max Shalimar Bagh Valid till 2065 Max Dehradun Max Healthcare Medical Service Agreement Max Panchsheel Immigration centre (Lajpat Nagar) Institute Limited Max Saket (West) (MHIL) Devki Devi Society SBUs (MIME, Max@Home)
Slide 39: Our Digital Backbone
Our Digital Backbone Modernization of IT infra Digitization & AI ▪ Implementation of SDWAN for better ▪ Multiple AI projects running in radiology user experience and cost optimization (Qure AI, Predible’s LungIQ, Zebra’s, etc.) ▪ Enhancement of BCP for improved + few pilot projects for disease RPO/R
Slide 40: Our people help us – to serve, to excel
Our people help us – to serve, to excel COMPASSION EXCELLENCE EFFICIENCY CONSISTENCY ▪ Travel tickets ‘to and fro’ home ▪ ~1 Mn hours of upskilling ▪ Differentiated reward strategy ▪ Received Great Place To Work to our nurses once a year programme through capability for medical and non-medical certi
Slide 41: List of Network Healthcare Facilities
List of Network Healthcare Facilities Name Location Description Max Super Speciality Hospital, Saket (West Block) Delhi Hospital Max Super Speciality Hospital, Saket (East Block) Delhi Hospital Max Smart Super Speciality Hospital, Saket Delhi Hospital BLK-Max Super Speciality Hospital, Rajendra Plac
Slide 42: Definitions
Definitions Term Description ALOS Average Length of Stay: discharged patients stay in the hospital, basis admission and discharge time Average Revenue per Occupied Bed; Gross revenue divided by the occupied bed days; excludes revenue from Covid-19 ARPOB vaccination & related antibody tests and Max L
Slide 43: About Us
About Us Max Healthcare Institute Limited (Max Healthcare) is one of India’s largest healthcare For further information, please visit organizations. It is committed to the highest standards of clinical excellence and patient care, supported by latest technology and cutting-edge research. www.maxheal
Max Healthcare Institute — Bank of America - 2024 India Conference on 6ix