Metropolis Healthcare Ltd. · NSE:METROPOLIS
Metropolis Healthcare — Q2 FY2020 Earnings Presentation
54 slides from Metropolis Healthcare's earnings presentation, Nov 11, 2019
Slide 1: Investor Presentation intimation letter to exchanges
Ref: MHUSec&Legal/2019/52 Date: November 11, 2019 To, Head, Listing Compliance ·Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, · Plot No. C/1 . G Block, Mumbai - 400 001 Sandra -Kurla Comple
Slide 2: Reaching Out Responsibly - Investor Presentation November 2019
Reaching Out RESPONSIBLY Investor Presentation - November 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Metropolis Healthcare Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Q2 & H1FY20 Financial & Operational Performance
Q2 & H1FY20 Financial & Operational Performance
Slide 5: Metropolis is a Strong Consumer Focused and Trusted Pathology Brand
Q2 & H1FY20 Financial Performance Metropolis is a Strong Consumer Focused and Trusted Pathology Brand in the Indian Diagnostics space ... Rs. 223 Cr 55% 2.66 Mn 5.17 Mn +15.6% YoY for Q2 +200 bps YoY for +15.7% YoY for Q2 +20.1% YoY for Q2 Quality Focus Rs. 427 Cr Q2 4.92 Mn 9.51 Mn Large test Menu
Slide 6: H1FY20 Financial Performance
H1FY20 Financial Performance EBIDTA (Rs. in Crs) Revenue Revenue Rs. (In Crs) before CSR and impact of IND AS 116 ✓ Revenue grew by 15.6% to Rs. 427 Crs as compared to 369 Crs in 26.30% 25.72% Q2 Q2 H1FY19 +15.6% +13.1% Q1 Q1 ✓ Revenue growth is driven by volume growth through organic 427 110 expans
Slide 7: Robust Operating Performance
Robust Operating Performance No. of Patient Visits (In Mn.) Revenue Per Patient (In Rs.) ✓Total patient visit has increased from 2.29 Mn in Q2FY19 to 2.66 Mn in +4.8% Q2FY20 registering a growth of 15.7% +16.3% Y-o-Y +12.8% 836 854 867 778 7.7 8.9 4.23 4.92 ✓ Number of tests performed has 7.0 increa
Slide 8: Network Expansion
Network Expansion Laboratory Network Service Network Lab on Lease ARC Greenfeild Third Party PSCs +8.7% 2,712 119 124 Owned PSCs 2,336 106 6x 621 95 19 20 8 575 2 1,650 520 887 1,835 93 98 100 104 1,506 428 308 879 151 356 117 223 251 255 256 160 FY17 FY18 FY19 H1FY20 FY16 FY17 FY18 FY19 H1FY20 Netw
Slide 9: Increasing Share of B2C Business
Increasing Share of B2C Business B2C Contribution in Focus Cities (Rs. in Crs) B2C Ratio 45% 48% 52% 52% 56% ➢ B2C segment now contributes 56% of the revenue from +17.0% Focus cities as compared to 52% in H1FY19 233 131 ➢ Overall revenue from B2C stood at 44.4% in H1FY20 as 195 112 159 compared to 4
Slide 10: Market Dynamics – a long runway of growth
Market Dynamics – a long runway of growth Revenue Mix between Focus, Seeding & Others Cities 23% 27% FY 19 H1FY20 55% 59% 19% 18% Others Seeding Focus Improving Revenue Diversification ➢ The revenue diversification is improving, and we were able to increase our revenue contribution from other cities
Slide 11: Operational Highlights of Q2
Operational Highlights of Q2 Acquisition of 4 Front End Labs in Surat effective Sep 30, 2019, which is a focus city, for expanding our market share in that Acquisition in Surat region. While these labs were part of our lab on lease in FY19, post acquisition it will allow us to build synergy and effi
Slide 12: Operational Highlights of Q2
Operational Highlights of Q2 ➢ New CHRO appointed - Ishita Medhekar – Before joining Metropolis, Ishita was Head HR with Sterlite Power. She has 20+ years of experience in varied industries such as telecom, Consultancy and Pharma with 15 years of experience in strategy and system designing and opera
Slide 13: Awards and Accolades - 2019
Awards and Accolades - 2019 Period Particulars October 2019 Metropolis won the award for Best IT Practices at the Data Center Summit, 2019 Our Managing Director, Ms Ameera Shah was listed amongst the Most Powerful October 2019 Women in Business by Fortune India 2019 and Business Today 2019 Metropoli
Slide 14: Consolidated Adjusted Profit & Loss Statement
Consolidated Adjusted Profit & Loss Statement Profit & Loss (Rs. Crs.) Q2FY20 Q2FY19 Y-o-Y Q1FY20 Q1FY19 Y-o-Y H1FY20 H1FY19 Y-o-Y Revenue from Operations 223.3 193.1 15.6% 203.3 175.8 15.7% 426.6 368.9 15.6% Cost of Raw Material Consumed 52.7 45.8 48.2 41.2 100.9 87.0 Laboratory Testing Charges 1.5
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Sep-19 Mar-19 Equity & Liabilities (Rs. Crs.) Sept-19 Mar-19 Non-current assets 353.2 247.9 Equity 486.8 420.0 Property, Plant and Equipment 120.7 116.7 Equity Share capital 10.0 10.0 Goodwill 90.6 78.6 Other equity 475.1 408.5 Other intangible assets 22.
Slide 16: Summary of Consolidated Cash Flow
Summary of Consolidated Cash Flow Half year ended Half year ended Cash Flow Statement for six months ended (Rs in Cr) Sep-19 Sep-18 Operating profit before working capital changes 92.55 89.11 Adjustments for Non-Cash Items 32.20 5.31 Changes in working capital 11.46 -6.83 Cash generated from operati
Slide 17: Overview
Overview
Slide 18: We are Metropolis: The Pathology Specialist
We are Metropolis: The Pathology Specialist To be a respected healthcare brand trusted by clinicians, patients and stakeholders. Positively impact lives of patients Vision in their most anxious times and turn their anxiety in to assurance. Helping people stay healthy, by accurately revealing their 3
Slide 19: Journey to Leadership Position
Journey to Leadership Position ✓ First Referral Laboratory Set- ✓ Ameera Shah takes charge ✓ Secondary transaction by ✓ Exit of Warburg Pincus, ✓ Strong Thrust on Retail up by Founder & Chairman Dr. Foxcreek Investment Limited management control by frontend Expansion ✓ First major acquisition - Sush
Slide 20: Three decades of Delivering Value to Stakeholders
Three decades of Delivering Value to Stakeholders Leadership Position Across Industry METROPOLIS Focus Area ACCREDITATION CUSTOMER & QUALITY EXPERIENCE ROCE SPECIALITY SCORES SCORE BUSINESS INCREASED INFRASTRUCTURE PRODUCTIVITY REVENUE PER REALISATION PER TEST MENU OF YOUNG PATIENT PATIENT NETWORK 1
Slide 21: Key Drivers for Growth
Key Drivers for Growth 01 Industry Growth 05 Expansion Plan 02 Value Chain 06 Quality 03 Business Model 07 People 04 Service Network 08 Digital Transformation 20
Slide 22: Diagnostic Industry Poised to grow
1a. Diagnostic Industry Poised to grow… Size of Indian Healthcare Industry Size of Indian Diagnostics Market Indian Diagnostics Industry Breakup (in Billion $) 6.0% 4.0% 35% 12.3 9.0% Healthcare Delivery - Hospitals Pharma 9.1 42% Pathology 13.0% Medical Devices Radiology 68.0% Diagnostics 58% Healt
Slide 23: Top players to continue to acquire market share of standalone centers
1b. Top players to continue to acquire market share of standalone centers Brand Awareness Increased brand awareness amongst patients and customers towards quality, reliability and test accuracy Service + Scale Large Test menu Large Test menu by organized diagnostics chains Factors leading Consolidat
Slide 24: Presence in key pockets of Value Chain
2.Presence in key pockets of Value Chain Diagnostic Industry - Fragmented Routine Test Metropolis Focus Highly Fragmented Market Low Quality Standard Majority Diagnostic Players Technician + Run Lab Low on Technical Qualifications & Moderate Competition Presence across Accreditations (99.9% labs rem
Slide 25: Hub & Spoke Model to scale efficiently
3. Hub & Spoke Model to scale efficiently Home Collection Global Reference Lab (GRL) Individual Patient (B2C) Wholesale (B2B) RRL / Satellite Lab Express Lab Third Party Lab / Hospitals / ARCs Collection Patient Centres Patient Leverage Widespread Delivery to our Enhances Collection of Greater netwo
Slide 26: Patient Centric Network
4.Patient Centric Network Global and More than ~4,000 Present in 19 States 35+ Years National Over 10,000 Patient Test’s & Profiles & 210 cities Quality Touch Points of Credible Operations Accreditations Why Metropolis ? Collection ✓ Conclusive Diagnosis with Large Centres Pics test Menu backed by H
Slide 27: Asset Lite Expansion Plan
5. Asset Lite Expansion Plan Asset Light Model Network Expansion Strategy Doctor APSC/ Lab on ✓ Focus on Asset Light Model to achieve Geographic Expansion with Bleeding DAPSC Lease High Scalability Point (DBP) ✓ The A-PSC and D-APSC Model allows us to grow our revenues by providing management and br
Slide 28: Quality in Core
6a. Quality in Core Quality Scores of 98.5% in 2018-19 by College Quality protocols following global standards of American Pathology 99.9% of industry labs remain un-accredited with lack of minimum standards in the industry Large Investments in Focus on Governance Information and rigorous audit Tech
Slide 29: Globally Compliant Quality Standards
6b. Globally Compliant Quality Standards No. of Audits Conducted by PAC Team “Global Lab Accreditations” FY 17-18 18-19 H1 20 665 1,312 597 ✓ PAC Team: Special Pre Analytical Care Team constituted as part of the Quality Assurance Team ✓ This team conducts thorough internal audits as per NABL Checkli
Slide 30: People are our greatest asset
7. People are our greatest asset ✓ New HR Management System for ✓ Strong culture equal opportunity ✓ Full Fledged Learning Management automated processes improving workplace System that is used for daily training productivity and ensuring availability of across the Company. employee data on demand ✓
Slide 31: Leveraging IT for Competitive Advantage
8. Leveraging IT for Competitive Advantage 1 2 3 4 Improving Business revenue Improved Operational Improve Customer Cost Saving & Optimization generation capabilities Efficiency Experience ✓ Zero Data Loss; 100% data ✓ IBM Watson Campaign Automation replication in remote location ✓ Mobility Applicat
Slide 32: Digital Transformation to improve efficiency
8a. Digital Transformation to improve efficiency 1 Standardization Achieve standardization across 2 Reduced Errors Reduce incidence of errors due to human intervention our operations Patients & Customers 3 Technical Operations Provide convenience to our 5 Monitor Technical Operations patients and cu
Slide 33: Future Strategy
Future Strategy 01 Increase Services 02 Increase Scale 32
Slide 34: Customer Centricity: In everything we do
Customer Centricity: In everything we do 01 02 03 04 Easy to Interpret Test Sample Collection from Conclusive Diagnosis Digital Access Report Doorstep We also have a policy of ensuring We have developed a Mobile Conclusive Diagnosis to our Application We offer our patients a Detailed We have increas
Slide 35: Sustainable Growth across Network
Sustainable Growth across Network Network of 210 Cities Criteria % of Revenue for FY19 Strategy ✓ Increasing the number of Collection Centers ✓ Enhancing our Laboratory Capacity and Test Menu by adding Latest Machines and Technology ✓ High Potential Market Focus Cities ✓ Expanding B2C share of Busin
Slide 36: Focus on Profitable B2C Business
Focus on Profitable B2C Business Increase B2C sales mix Deeper Network Strengthen Productivity of Wellness initiatives Penetration Metropolis Brand existing young network for consumers Deeper centre penetration Expand Branded third- Increase number of referring Creating an easy and engaging in Focus
Slide 37: Growing Inorganically– A Win-Win Strategy
Growing Inorganically– A Win-Win Strategy Build Industry Best practices Introducing Standardized Machines and SOPs in a phased manner resulting in efficiency and quality enhancement Access to Metropolis Network Providing acquired entities access to Metropolis Sales and Marketing Network to improve t
Slide 38: Successful Track Record of Inorganic Strategy
Successful Track Record of Inorganic Strategy : 22 Acquisitions in 15 years Revenue at the time of Few of the Acquired Companies Year of Acquisition Location Revenue for FY19 acquisition Sudharma Metropolis Health Services 2003 Kerala Rs. 1.8 Crores Rs. 50.4 Crores Private Limited Golwilkar Metropol
Slide 39: Plenty of Opportunities for Growth
Plenty of Opportunities for Growth… Growing our offering of Test Packages to Increase Revenue Test Packages Metrics. Customized packages to Institutional Customers Expansion and Personalized Packages to Individual Patients are key Leverage our vast capabilities in Molecular Diagnostics, Aggressive N
Slide 40: Historical Financial & Operational Performance
Historical Financial & Operational Performance
Slide 41: Pan India Presence
Pan India Presence… Metropolis Service Network Metropolis Service FY18 FY19 Network Laboratories 106 119 Owned PSC’s 251 255 Third Party PSC’s 879 1506 ARC’s 520 575 Total 1756 2455 On Consolidated Basis Maps not to scale. All data, information, and maps are provided "as is" without warranty or any
Slide 42: …with Aggressive Network Expansion Strategy
…with Aggressive Network Expansion Strategy Laboratory Network Service Network ARC Third Party PSCs +10.2% 119 Owned PSCs 2,336 106 95 575 89 +76.1% 1,650 520 887 1,506 308 879 428 151 356 117 251 255 160 223 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Network Strategy Highlights Young Individuals Patie
Slide 43: Better than industry growth
Better than industry growth Revenue (In Rs. Crs.) Bolstering Growth in Wellness Segment Metropolis Wellness revenue contribution for +16.9% 760 Metropolis is 5.5% which grew at 27% in FY19 644 545 18.1% 475 18.1% This market is expected to grow at a CAGR of 20% over next 3 financial years (Frost & S
Slide 44: Robust Operating & Financial Performance
Robust Operating & Financial Performance No. of Patient Visits (In Mn.) Revenue Per Patient (In Rs.) Metropolis realization per +8.9% +7.3% test and sample is higher than 8.9 836 854 7.7 +15.6% 778 industry owing to:- 6.9 7.0 692 ✓ ~41% of specialised test FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 con
Slide 45: Well growing B2C Mix
Well growing B2C Mix Retail contribution in Focus Cities to Total Revenue 52% 45% 48% 43% Primary Strategy of the Company is to increase the Retail share in focus cities to 65% FY16 FY17 FY18 FY19 Chart shows B2C contribution over the years in focus cities; Mumbai, Chennai, Bangalore, Surat and Pune
Slide 46: Financial Highlights
Financial Highlights Revenue (In Rs. Crs.) EBITDA (In Rs. Crs.) before CSR and one time share based and other expenses +16.9% 760 207 +17.9% 644 178 545 152 475 127 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 EBITDA% PAT (In Rs. Crs.) before CSR and one time share based and other expenses before CSR and
Slide 47: Financial Highlights
Financial Highlights ROCE (%) ROE (%) 46.5% 31.2% 43.6% 43.1% 29.4% 27.9% 38.3% 26.0% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 On Consolidated Basis 46
Slide 48: Profit & Loss Statement
Profit & Loss Statement Profit & Loss (Rs. Crs.) FY19 FY18 FY17 FY16 Revenue from Operations 760.1 643.6 544.7 475.5 Cost of Material Consumed 173.5 145.9 135.1 124.6 Laboratory testing charges 5.6 5.7 2.5 3.1 Total Raw Material 179.1 151.6 137.6 127.7 Gross Profit 581.0 492.0 407.1 347.8 Gross Prof
Slide 49: Balance Sheet
Balance Sheet Assets (Rs. Crs.) Mar-19 Mar-18 Mar-17 Mar-16 Equity & Liabilities (Rs. Crs.) Mar-19 Mar-18 Mar-17 Mar-16 Non-current assets 248.2 230.1 230.1 170.6 Equity 419.9 429.1 344.1 293.9 Property, Plant and Equipment 116.7 112.3 105.2 105.6 Equity Share capital 10.0 9.5 9.5 9.5 Capital Work I
Slide 50: Board of Directors and Management Team
Board of Directors and Management Team
Slide 51: Board of Directors
Board of Directors Dr. Sushil Kanubhai Shah Ameera Sushil Shah Mihir Jagdish Doshi Chairman & Executive Director Managing Director Non-Executive Director Holds a bachelor’s degree in Medicine and Surgery Holds a bachelor’s degree in Business Holds a bachelor’s degree in Science from New and a degree
Slide 52: Management Team
Management Team Vijender Singh Dr. Nilesh Shah Chief Executive Officer President and Chief of Science & Innovation Holds a bachelor’s degree in Science from Kurukshetra Holds a master’s degree in Engineering from University of University and completed an Executive Education Mumbai and a Diploma in M
Slide 53: Awards & Accolades
Awards & Accolades 2010 “Diagnostic Services Company of the Year” by Frost & Sullivan 2012 “Outstanding Quality Diagnostic Services” by HIV Congress 2012 2014 “Most Promising Brand” by the World Consulting and Research Corporation “Quality Brand” by Quality Brands India 2015 “Best Diagnostic Company
Slide 54: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Metropolis Healthcare Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – U73100MH2000PLC192798 CIN - U74140MH2010PTC204285 Mr. Tushar Karnik - CFO Mr. Shogun Jain / Mr. Sagar Shroff Email Id – tushar.karnik@metropolisindia.
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