32 slides from Dr. Lal Pathlabs's investor presentation, August 2018
Slide 1: Dr. Lal PathLabs Limited Corporate Presentation
Dr. Lal PathLabs Limited Corporate Presentation August 2018
Slide 2: Disclaimer
Disclaimer By attending the meeting / telephonic call where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by Dr. Lal PathLabs Limited (the “Company”) for use in presentat
Slide 3: Table of Contents
3 Table of Contents 1 Company Overview 2 Investment Highlights 3 Q1 FY19 Highlights & Financial Performance 4 LPL Strategy for future growth 5 Annexures DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to undetermined
Slide 4: Company Overview
Company Overview • Our Evolution • Dr. Lal PathLabs at a glance • Experienced Management team
Slide 5: Our Evolution
5 Our Evolution 1949 – 2005 2005 – 2010 2010 – 2018 Foundation Building capabilities for Strong position in North scale up India, building network in other geographies 1949: Founded by Dr. Major 2005: onwards: Investment Investment by TA Associates S. K. Lal by WestBridge Capital Clinical la
Slide 6: Dr. Lal PathLabs at a glance
6 Dr. Lal PathLabs at a glance Test Menu Established consumer healthcare brand in diagnostic services Specialized Routine testing testing Pan-India integrated coverage with 193 clinical labs (including National Reference Lab1 at Delhi and Regional Bio-chemistry Molecular Ref Lab at Kolkata), 2,1
Slide 7: Experienced Management team
7 Experienced Management team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Whole-time Director and Chief Chairman and Managing Director Whole-time Director Executive Officer Ved Prakash Goel Bharath Uppiliappan Shankha Banerjee Chief Financial Officer Chief Operating Officer Chief G
Slide 8: Investment Highlights
Investment Highlights
Slide 9: Investment Highlights
9 Investment Highlights Well-positioned in one of Scalable model integrated Established consumer the fastest-growing through centralized IT healthcare brand in segments of the Indian platform allows for diagnostic services healthcare industry network expansion Attractive operating Robust financial m
Slide 10: Indian Healthcare Services is a large growth opportunity
10 Indian Healthcare Services is a large growth opportunity 1.42 bn India’s expected population in 2026 India, highly underpenetrated market 7.6% GDP growth in FY161 INR 4.2 trillion Total Healthcare Expenditure as % of GDP (2013) FY14 India healthcare expenditure 17.1% ~68% Private expenditure on h
Slide 11: Growth Drivers
11 INR 377 bn Diagnostic Services industry expected to grow to INR 700 bn by FY20 Diagnostic Services Industry Size CAGR: INR 700-750 bn Growth Drivers 14–16% 1 Increase in evidence-based INR 377 bn treatments 2 Demand for lifestyle diseases- related services to grow 2014–15 2019–20P 3 Focus on prev
Slide 12: Diagnostic Services industry remains highly fragmented
12 Diagnostic Services industry remains highly fragmented Highly Fragmented Industry Standalone Centres, 48% Large Pan- India Chains 35-40% Diagnostic Regional Chain, 15% Chains 60- 65% Hospital Based, 37% Largely fragmented and unorganized Source: CRISIL Report titled “Assessment of Diagnostics Ind
Slide 13: Established consumer healthcare brand in Diagnostic Services
13 Established consumer healthcare brand in Diagnostic Services Pillars of a Strong Brand Accreditations Nationwide Network Fast Turnaround Time Accreditations from CAP, Coverage in metros, Tier 1 24x7 access including online NABL and ISO and Tier 2 cities access and home collection Centrall
Slide 14: Hub and Spoke Model Network Expansion
14 Scalable Model integrated through centralized IT platform allows for network expansion Hub and Spoke Model Network Expansion PSC PSC No. of Clinical No. of PSCs No. of PUPs Reference Laboratories Lab 2,153 Clinical Clinical 193 5,668 5,624 Lab Lab 1,759 189 1,559 1,340 PSC PSC PSC PSC 172 5,021 1
Slide 15: Integrated National Network backed by Centralized IT platform
15 Scalable Model integrated through centralized IT platform allows for network expansion Integrated National …backed by Centralized IT platform Network… which fully integrated network Enterprise Resource Payables, receivables, inventory, ledgers etc. Planning (ERP) Scalability and connectivity
Slide 16: Collection network
16 Collection network LPL’s scalable business model provides strategic advantage for expansion and consolidation National Reference Lab & Regional Ref. Lab Clinical Labs (Testing/Collection) Patient Service Centers Pickup Points Home Walk-ins Collection Hospitals Doctors Labs Walk-ins Diverse, lar
Slide 17: Attractive operating metrics
17 Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR mn) Q1 FY19 Revenues increased on Consumer brand and network account of : Increase in samples with patient Marked gains in patient expansion driving patient volumes growth volumes at 18.1% volumes I
Slide 18: Multiple levers in place to drive next phase of growth
18 Multiple levers in place to drive next phase of growth Expand through Expand presence in Focus on hospital- strategic acquisitions existing markets based clinical labs and partnerships Cluster and focused geography approach M&A provides growth kicker Increase existing tie-ups Deepen prese
Slide 19: Strategies to deepen our presence
19 Strategies to deepen our presence South and North India East India West India Focus on Preventive healthcare retail Commitment to quality Online report; screening and chronic network and and reliability of data analytics / lifestyle disease management home services services. Bundling of tests col
Slide 20: Robust financial performance
20 Robust financial performance Total Revenue Revenue by Geography (FY18) EBITDA1,PAT and Return on Net Worth INR (Mn) (%) (INR mn / %) EBITDA Margin West India, Others, Before ESOP 27.3% 26.7% 27.2% 26.3% 6.8% 1.2% charge1 South India, 6.7% PAT Margin 14.6% 16.8% 17.1% 16.3% RONW 33.7% 31.4% 29.1%
Slide 21: Robust financial performance (Cont'd)
21 Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents (Times) (INR mn) 3.6x 1,861 2,945 3,882 5,506 6,085 3.4x 3.3x 3.2x 4,058 4442 2,836 2,302 1,482 1448 1643 1046 643 379 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Q1 FY19 Cash and Bank Current Balance Investments
Slide 22: Q1 FY19 Highlights & Financial Performance
Q1 FY19 Highlights & Financial Performance
Slide 23: Q1 FY19 Snapshot
Q1 FY19 Snapshot 17.3% Revenues INR 2,923 mn Samples Processed ~9.90 mn 16.7% EBITDA INR 793 mn Patients Tested ~4.23 mn 11.7% PAT INR 497 mn Total Employees* ~4,316 *As on March 31, 2018, 23
Slide 24: Key Performance Highlights
Key Performance Highlights Trend of volume improvement continues in Q1. Patient volumes and tests per patients show healthy increase. During Q1 FY19: • Revenues increased to Rs. 2,923 million in Q1 FY19, up 17.3% driven by 18.1% volume improvement • Number of patients tested stood at 4.23 million in
Slide 25: Financial Table
Financial Table Particulars (Rs. mn) Q1 FY19 Q1 FY18 Growth % FY2018 Total Revenue 2,922.8 2,492.6 17.3% 10,569.2 Total Expenditure 2,172.5 1,837.5 7,929.2 EBITDA 750.3 655.1 14.5% 2,640.0 Adj for RSU, and stock based comp. & CSR Cost 43.0 24.8 142.7 Normalised operating EBITDA 793.3 679.9 16.7% 2,7
Slide 26: Financial Highlights
Financial Highlights Revenues All figures in Rs. mn 2,923 Q1 reported continued Realisation per patient stood 2,493 improvement in revenues at largely flat at Rs. 691 Vs. Rs. 17.3% to Rs. 2,923 million. Key 694 last year mainly due to aspects of performance were: price rationalisation in select
Slide 27: Financial Highlights
Financial Highlights PBT All figures in Rs. mn 754 660 Q1 PBT stood at Rs. 753.5 million PBT margin came in at 25.8% vs. Rs. 660.3 million in same during the quarter – marginally quarter last year lower than previous year at 26.5% Q1 FY18 Q1 FY19 PAT 497 444 Q1 PAT came in at Rs. 496.5 Q1 PA
Slide 28: LPL Strategy for future growth
LPL Strategy for future growth
Slide 29: DLPL Strategy for future growth
DLPL Strategy for future growth 1 Strengthen Existing Operations Boosting quality & Improving Grow basic Online initiatives Investment in reliability turnaround times radiology practice and data analytics branding standards for testing 2 Expansion in Offering Improve breadth Preventive Chronic & Lif
Slide 30: Annexures
Annexures • Shareholding as of 30th June, 2018
Slide 31: Shareholding as of 30th June, 2018
Shareholding as of 30th June, 2018 57.4% 7.9% 15.9% Promoter and Mutual FII Promoter Fund Group 18.8% Others 31
Slide 32: Contact us
Contact us About Dr Lal PathLabs Limited (DLPL) For further information please contact: Dr Lal PathLabs Limited is one of India’s leading consumer healthcare brand in diagnostic services. Ved Goel / Rajat Kalra It has an integrated nationwide network, where patients Dr. Lal PathLabs Limited and heal