Aster Dm Healthcare Ltd. · NSE:ASTERDM
Aster Dm Healthcare — Q2 FY2024 Earnings Presentation
58 slides from Aster Dm Healthcare's earnings presentation, Nov 15, 2023
Slide 1: Stock exchange filing cover letter
November 14, 2023 The Secretary The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd 1st Floor, Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G Dalal Street, Mumbai 400001 Bandra Kurla Complex Scrip Code: 540975 Bandra (East), Mumbai 40005
Slide 2: Investor Presentation for the Quarter Ended 30th September 2023
1 INVESTOR PRESENTATION For the Quarter Ended on 30th September 2023
Slide 3: Disclaimer
2 Disclaimer • This presentation has been prepared by Aster DM Healthcare Limited (the "Company"), content of which was compiled from sources believed to be reliable for informational purposes only and are based on information regarding the Company and the economic, regulatory, market and other cond
Slide 4: Vision
VISION A Caring Mission with a Global Vision to Serve the World with Accessible and Affordable Quality Healthcare.
Slide 5: Aster DM Healthcare – Evolution
Aster DM Healthcare – Evolution 4 New geographies, segments Brand “Aster” was formed, private Robust Growth across all Growth and Diversification into Building the foundations and service offerings equity investment, further expansion segments and geographies; Rapid aligned businesses across Expansi
Slide 6: Update on Restructuring
Update on Restructuring 5 The Company has been periodically updating its stakeholders on the ongoing restructuring process of its GCC business to help unlock value for shareholders. Negotiations with the shortlisted majority bidder are at an advanced stage. As previously indicated, the promoters int
Slide 7: Business Overview – H1
Business Overview – H1 6 34 (30) GCC : 15 (15) One of the Largest Private Healthcare 6,304 GCC : 1,449 (1,441) (5,521) Hospitals India : 191 (15) service providers operating India : 4,855 (4,080) Capacity Beds in Asia (GCC & India) Presence in 7 Countries 9.6 Mn GCC. : 7.9 Mn 131 (121) GCC : 118 (11
Slide 8: Geographical Footprint
7 Geographical Footprint 7 United Arab Emirates Kingdom of Saudi Arabia Kerala Andhra Pradesh Karnataka H(9) C(104) P(253) H(1) H(7) C(2) P(86) L(6) PEC(154) H(6) C(4) L(2) PEC(2) H(4) C(7) P(86) L(5) PEC (76) Oman Qatar Bahrain Jordan Maharashtra Telangana Tamil Nadu H(1) C(6) P(5) C(2) P(2) P(10)
Slide 9: Aster DM Healthcare – Financial Overview
Aster DM Healthcare – Financial Overview 8 Revenue - FY24 H1 EBITDA - FY24 H1 India India India India 27% 36% (PY: (PY XX%) : 26%) (PY: XX%) (PY : 35%) GCC GCC GCC Note: 73% 64% (PY:: 65%) XX%) 1. Revenue and EBITDA shown above excludes other income (PY: (PYXX%) : 74%) (PY 2. Above shown percentage
Slide 10: GCC Hospitals
99 GCC Hospitals UAE Qatar Oman Aster Hospital Mankhool Aster Hospital Qusais Cedars Hospital Dubai Dubai Dubai CB:140 OB:118 CB:163 OB:126 CB:20 OB:12 2015, Leased 2018, Leased 2019, Leased Aster Hospital Al Raffah Hospital Al Raffah Hospital Doha Muscat Sohar CB:61 OB:30 CB:72 OB:52 CB:81 OB:63 20
Slide 11: India Hospitals
India Hospitals 10 10 Kerala Cluster Karnataka & Maharashtra Andhra & Telangana Cluster Cluster Aster Medcity MIMS Kottakkal Kochi, Kerala Aster CMI Kottakkal, Kerala Ramesh Main Ramesh Ramesh Guntur CB: 759 OB: 625 Bengaluru, Karnataka CB:340 OB:263 Centre Sanghamitra Guntur, AP 2014, Owned CB:508
Slide 12: Hospitals: Pipeline Projects
Hospitals: Pipeline Projects 11 Addition of 245 beds in GCC by the end of FY25 Owned / Hospitals - GCC Location Planned Beds Expected Completion Year Present Status Leased/O&M Aster Hospital Doha, Qatar 60 Q4 FY 2025 Design Leased Medcare Royal Hospital Dubai, UAE 126 Q4 FY 2024 Design Leased Annex
Slide 13: The Aster DM Healthcare Edge
The Aster DM 12 Healthcare Edge • Strong track-record of financial, operational, • Holistic healthcare solutions for people, societal growth trajectory in GCC including primary, secondary, tertiary and Sturdy • Brisk scaling-up of operations across quaternary care Performance segments and geographie
Slide 14: Historical Trends
Historical Trends 13 Capacity Beds Outpatient Count (in mn) Inpatient Count (in ‘000) GCC India 6,304 326 5,756 10.3 5,521 9.8 273 9.4 254 4,907 5,065 8.7 4,804 4,561 7.7 218 220 178 4,855 157 4,317 4,080 3,905 4.7 4.7 3,460 3,693 3,757 1,101 1,111 1,150 1,160 1,439 1,441 1,449 FY19 FY20 FY21 FY22 F
Slide 15: An Integrated Healthcare Provider
14 AN INTEGRATED HEALTHCARE PROVIDER Aster – An Integrated Healthcare Provider
Slide 16: Aster - An Integrated Healthcare Provider
15 Aster - An Integrated Healthcare Provider FY23 Operational Information 1,800+ 326,300+ Cardiovascular IP Discharges Surgeries ~5.1 mn 22,800+ 1,300+ Clinic OPD Visits General Bariatric Surgeries Surgeries 4,000+ 1,500+ Joint ~ 9.8 mn Spine Replacements Pharmacy Surgeries Visits 17,700+ 400+ Urolo
Slide 17: Aster – A Healthcare Ecosystem
Aster – A Healthcare Ecosystem 16 Patient Life Cycle Management • Aster, over 35 years, Hospitals Clinics Pharmacies has created a Healthcare Ecosystem across two geographical regions • Indian operations act as a source of talent (Doctors, Nurses, and • In GCC region, Aster’s other employees) Primar
Slide 18: Digital Health
Digital Health 17 Currently ranks #1 among the Free Apps in Medical Category in the UAE Virtual Care – Omni-channel experience Online Pharmacy Digital CRM § Influx of 1.3M unique users (29% growth over Q1 ) § Over 220K+ net Installs of the App in the UAE in Q2FY24 and 0.9M sessions (28% growth over
Slide 19: Aster Labs
Aster Labs was established in 2019, WE WILL Having built a strong presence in Karnataka The focus is now on Profitability with TREAT YOU WELL is the brand promise that & Kerala, Aster Labs has expanded to Andhra the existing infrastructure in place and every analysis will be most accurate, and help
Slide 20: Aster Pharmacy Footprint (India)
(INDIA) Our goal is to position ourselves as a prominent q Aster Pharmacy opened 1st pharmacy in India in February’21 brand in the regions we serve. We strive to achieve and is expanding its footprint around Aster Ecosystem Vision recognition as a key player in these areas by q Focused approach towa
Slide 21: GCC Healthcare – Unique traits
GCC Healthcare – Unique traits 20 Population (Mn) Healthcare market in GCC states, which is mostly insurance driven, have developed certain unique traits due to the higher expat and working age population 36.4 Expacts Nationals Prevalence of Primary and Secondary Healthcare Facilities (Private Secto
Slide 22: Aster - Awards & Service Excellence
Aster - Awards & Service Excellence 21 21 • Elected by World Economic Forum as a Young Dr. Azad Moopen • Recipient of the “Padma Shri” Award, the 4th Alisha Moopen Global Leader Chairman & Managing highest civilian award by the Government of India Deputy Managing • Harvard Business Council Internati
Slide 23: Aster - Awards
Aster - Awards 22 ET Healthcare Awards- Outlook's Best Hospital Ranking Hospital Chain of the Year Times All India Multispecialty Hospitals 2023 : Aster Medcity , Aster CMI, Ranking Survey 2023 MIMS Calicut Excellence in CSR Aster Medcity, Aster CMI, MIMS Calicut Aster DM Healthcare, Aster Medcity,
Slide 24: Aster - Awards
Aster - Awards 23 Reader’s Digest - Most Trusted Middle East Technology Asian Hospital Hospital in Bengaluru Excellence Awards Management Awards Aster CMI Aster Hospitals Aster Hospitals Cyber Security Council World AI Show & Awards – Aster Hospitals, UAE Best Project Implementation Arabia Corporate
Slide 25: Operational and Financial Overview
24 OPERATIONAL AND FINANCIAL OVERVIEW Operational and Financial Overview
Slide 26: Clinical Highlights - FY24 Q2
Clinical Highlights - FY24 Q2 25 India Ø A 65-year old male with a persistent non-healing ulcer, avoided having to amputate his foot and regained the ability to walk through the efforts of the team at Aster Medcity. Ø Two patients affected by Nipah, one of whom was critically ill and on a ventilator
Slide 27: Revenue and Profitability Snapshot – FY24 Q2
Revenue and Profitability Snapshot – FY24 Q2 26 Revenue from Operations Operating EBITDA (excl. other Income) PAT Adjusted PAT Revenue excluding new hospitals4 is Rs. EBITDA excluding new hospitals4 and non- § PAT excluding losses from new hospitals4 ,non-recurring restructuring cost, loss from asso
Slide 28: GCC one-off items impacted the overall profitability
27 GCC one-off items impacted the overall profitability Particulars GCC India Consol Q2 FY24 Reported PAT (80) 49 (31) Adding back : Provision for Receivables for Wahat, UAE* – One-time costs 55 55 Adding back loss from New Hospitals set up in the last one year 13 17 30 Adding back Restructuring Cos
Slide 29: Revenue and Profitability Snapshot – FY24 H1
Revenue and Profitability Snapshot – FY24 H1 28 Revenue from Operations Operating EBITDA (excl. other Income) PAT Adjusted PAT Revenue excluding new hospitals4 is Rs. EBITDA excluding new hospitals4 and non- § PAT excluding losses from new hospitals4, non-recurring restructuring cost, one-time defer
Slide 30: Geography – wise Financial Snapshot – Quarterly
Geography – wise Financial – Snapshot – Quarterly 29 GCC INDIA CONSOLIDATED FY23 Q2 FY24 Q2 Growth FY23 Q2 FY24 Q2 Growth FY23 Q2 FY24 Q2 Growth Revenue (₹) 2,059 Cr 2,383 Cr 16% 757 Cr 934 Cr 23% 2,816 Cr 3,317 Cr 18% Operating EBITDA (₹) 192 Cr 236 Cr 23% 132 Cr 157 Cr 19% 324 Cr 393 Cr 21% PAT (₹
Slide 31: Geography – wise Financial Snapshot – Half Yearly
Geography – wise Financial – Snapshot – Half - Yearly 30 GCC INDIA CONSOLIDATED FY23 H1 FY24 H1 Growth FY23 H1 FY24 H1 Growth FY23 H1 FY24 H1 Growth Revenue (₹) 4,070 Cr 4,760 Cr 17% 1,408 Cr 1,772 Cr 26% 5,478 Cr 6,532 Cr 19% Operating EBITDA (₹) 400 Cr 507 Cr 27% 219 Cr 285 Cr 30% 620 Cr 791 Cr 28
Slide 32: Geography – wise Business Snapshot – Quarterly
Geography – wise Business – Snapshot - Quarterly 31 GCC INDIA CONSOLIDATED FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 Total Capacity Beds 1,441 1,449 4,080 4,855 5,521 6,304 Operational Beds (Census) 1,121 1,115 3,065 3,541 4,186 4,656 Operational Beds (Non-Census) 320 334 835 1,002 1,155 1,336
Slide 33: Geography – wise Business Snapshot – Half Yearly
Geography – wise Business – Snapshot – Half Yearly 32 GCC INDIA CONSOLIDATED FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 Total Capacity Beds 1,441 1,449 4,080 4,855 5,521 6,304 Operational Beds (Census) 1,121 1,115 3,065 3,541 4,186 4,656 Operational Beds (Non-Census) 320 334 835 1,002 1,155 1,3
Slide 34: India Geography – wise Business Snapshot – Quarterly
Geography – wise Business – Snapshot – Quarterly 33 KARNATAKA & ANDHRA & KERALA TOTAL MAHARASHTRA TELANGANA FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 Total Capacity Beds 2,193 2,385 1,016 1,423 871 1,047 4,080 4,855 Operational Beds (Census) 1,702 1,833 761 918 602 790 3,065 3,
Slide 35: India Geography – wise Business Snapshot – Half Yearly
Geography – wise Business – Snapshot – Half Yearly 34 KARNATAKA & ANDHRA & KERALA TOTAL MAHARASHTRA TELANGANA FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 Total Capacity Beds 2,193 2,385 1,016 1,423 871 1,047 4,080 4,855 Operational Beds (Census) 1,702 1,833 761 918 602 790 3,065
Slide 36: Segmental Performance FY24 Q2 - India
Segmental Performance FY24 Q2 - India 35 Growth rates Hospitals & Unallocate Hospitals & Unallocate Hospitals - Labs & Hospitals - Labs & Clinics d& Clinics d& Q2 FY24 O&M Asset Wholesale Total Gw % O&M Asset Wholesale Total (Ex. O&M Elimination (Ex. O&M Elimination Light Pharmacy Light Pharmacy Ass
Slide 37: Segmental Performance FY24 H1 – India
Segmental Performance FY24 H1 – India 36 Growth rates Hospitals & Hospitals & Unallocated Hospitals - Labs & Unallocated Hospitals - Labs & Clinics Clinics & H1 FY24 O&M Asset Wholesale & Total Gw % O&M Asset Wholesale Total (Ex. O&M Asset (Ex. O&M Asset Elimination Light Pharmacy Eliminations Light
Slide 38: Maturity Wise Hospital Performance – India
Maturity Wise Hospital Performance – India FY 24 H1 37 Key Performance indicators Revenue Operational Beds Operating EBITDA Maturity Hospitals (INR in Crs.) (Census) ARPOBD Occupancy (INR in Crs.) EBITDA % 0-3 Years 6% 16% ₹ ~24,700 ₹(12) 6 ₹96 47% -12.6% 559 Over 3 94% 84% ₹333 12 ₹ ~40,500 70% Yea
Slide 39: Segmental Performance FY24 Q2 - GCC
Segmental Performance FY24 Q2 - GCC Growth rates 38 GCC Unallocated & GCC GCC Unallocated & FY24 Q2 GCC Hospitals GCC Clinics Total GCC Clinics Total Pharmacies Eliminations Hospitals Pharmacies Eliminations No. of Business Units (#) 15 119 276 NA 410 -- -- -- -- -- Operational Beds (#) 1,115 NA NA
Slide 40: Segmental Performance FY24 H1 - GCC
Segmental Performance FY24 H1 - GCC Growth rates 39 GCC Unallocated & GCC GCC Unallocated & FY24 H1 GCC Hospitals GCC Clinics Total GCC Clinics Total Pharmacies Eliminations Hospitals Pharmacies Eliminations No. of Business Units (#) 15 119 276 NA 410 -- -- -- -- -- Operational Beds (#) 1,115 NA NA
Slide 41: Maturity Wise Hospital Performance – GCC FY24 H1
Maturity Wise Hospital Performance – GCC FY24 H1 40 Key Performance indicators Revenue Operational Beds EBITDA Maturity Hospitals (INR in Crs.) (Census) EBITDA % ARPOBD Occupancy (INR in Crs.) 9% 20% ₹(18) 0-3 Years 3 ₹ ~138,650+ 34% ₹189 220 -9.5% Over 3 91% 80% ₹351 12 ₹ ~206,100+ 57% 17.5% Years
Slide 42: Financial Summary – Profitability Statement (1/2)
Financial Summary – Profitability Statement (1/2) 41 Particulars (INR Cr) FY24 Q1 FY23 Q2 FY24 Q2 Y-o-Y Gw% Q-o-Q Gw% Revenue from operations 3,215 2,816 3,317 18% 3% Material consumption 965 839 959 Doctors cost 689 597 718 Employee cost (excl. doctors) 689 650 709 Laboratory outsourcing charges 19
Slide 43: Financial Summary – Profitability Statement (2/2)
Financial Summary – Profitability Statement (2/2) 42 Particulars (INR Cr) FY23 H1 FY24 H1 Gw% Revenue from operations 5,478 6,532 19% Material consumption 1,651 1,925 Doctors cost 1,158 1,407 Employee cost (excl. doctors) 1,257 1,398 Laboratory outsourcing charges 35 33 Other expenses 758 977 Operat
Slide 44: Financial Summary – Balance Sheet & Ratios
Financial Summary – Balance Sheet & Ratios 43 As at Mar 31, As at Sep 30, As at Mar 31, As at Sep 30, Particulars (INR Cr) India (in INR Cr) 2023 2023 2023 2023 LIABILITIES Gross Debt 597 683 Shareholders Equity 4,448 4,373 Less: Cash, Bank Balance and Current Investments 87 66 Minority Interest 412
Slide 45: Consol Trends - I
44 Consol Trends - I Revenue (INR Cr) EBITDA 1,565 11,933 1,483 10,253 1,258 8,652 8,608 1,063 7,963 863 6,532 791 5,478 620 FY19 FY20 FY21 FY22 FY23 FY23 H1 FY24 H1 FY19 FY20 FY21 FY22 FY23 FY23 H1 FY24 H1 EBITDA Margin ROCE 14.5% 14.5% 10.0% 9.7% 13.1% 12.3% 12.1% 8.6% 8.6% 11.3% 8.2% 10.8% 7.4% 5
Slide 46: Consol Trends - II
45 Consol Trends - II Net Debt (excl. Lease Liabilities) (INR Cr) Net Debt (incl. Lease Liabilities) (INR Cr) India GCC India GCC 2,783 5,416 5,533 358 5,261 2,329 4,979 2,045 633 4,499 4,521 1,278 242 2,004 1,043 1,806 1,848 1,907 857 306 390 652 763 319 510 617 2,425 2,087 4,783 4,218 4,122 4,255
Slide 47: India: Financial Trends
India: Financial Trends 46 Revenue (INR Cr) Operating EBITDA 2,983 453 2,384 353 1,772 1,631 1,654 285 1,314 1,408 219 183 144 121 FY19 FY20 FY21 FY22 FY23 FY23 H1 FY24 H1 FY19 FY20 FY21 FY22 FY23 FY23 H1 FY24 H1 Operating EBITDA Margin PAT (Post- NCI) 147 15.6% 16.1% 14.8% 15.2% 91 11.3% 69 60 9.2%
Slide 48: India Hospital & Clinics Cluster-Wise Trends
India Hospital & Clinics Cluster-Wise Trends 47 Kerala Cluster Karnataka & Maharashtra Cluster Andhra & Telangana Cluster Revenue (INR Cr) Revenue (INR Cr) Revenue (INR Cr) 817 370 344 1,691 314 303 655 279 1,318 516 202 875 935 965 442 433 164 801 386 701 310 FY19 FY20 FY21 FY22 FY23 FY23 FY24 FY19
Slide 49: Strategy & Leadership
48 STRATEGY & LEADERSHIP Strategy & Leadership
Slide 50: GCC Strategy
49 Strengthening of our GCC Strategy medical tourism network • To further strengthen integration of GCC & India operations to provide consistent quality experience The pandemic allowed us to reflect and re- to patients across geographies invent certain processes at all the locations. • To position o
Slide 51: India Strategy
In line with 50 India Strategy Aster DM Healthcare focus on hopes to leverage its derisking Focus on extensive experience business – large format of working in a 100% target of 40%- hospitals in Tier 1 insurance market in 50% of overall cities – Hospitals the GCC to derive revenues in the in Tier 1
Slide 52: ESG: Committed to UN Sustainable Development Goals
51 ESG: Committed to UN Sustainable Development Goals
Slide 53: Story so far…
52 Story so far… Steady progress being made for FY ’24 with preparation, sign off, and audit of our ESG annual report. Highlighted below are key milestones achieved so far: External Assurance Materiality Assessment ESG Rating Partnered with Workshops KPMG for carrying out an independent Launched the
Slide 54: ESG highlights for the year
ESG highlights for the year 53 In this financial year we have made significant progress on all aspects of E: Environment, S: Social and G: Governance performance 577 MWh energy consumption reduction at 100% resolution of reported whistleblowing Medcare Hospital cases raised via the confidential repo
Slide 55: Aster – ESG Strategy
54 Aster – ESG Strategy Current ESG practices External engagement for ESG Policy and ESG Risk ESG Pillars identified in ESG framework approved by the assurance of Aster’s ESG Board level ESG commitment Report Aster Board report against global frameworks Next steps § External Assurance of Aster’s ESG
Slide 56: Aster Board of Directors
Aster Board of Directors 55 Dr. Azad Moopen Alisha Moopen T. J. Wilson Chairman and Managing Non-Executive Director Deputy Managing Director Director Shamsudheen Bin Daniel Robert Emmanuel David Mohideen Mammu Haji Mintz Gootam Non-Executive Director Non-Executive Director Independent Director Puran
Slide 57: Aster Leadership Team
Aster Leadership Team 56 56 Dr. Azad Moopen Founder, Chairman & Managing Director T. J. Wilson Dr. Malathi Fara Siddiqi Alisha Moopen Group Head - Governance & Group Chief Medical & Group Chief Human Deputy Managing Director Corporate Affairs, GCC Quality Officer Resources Officer Veneeth Purushotam
Slide 58: Thank You
57 Thank You www.asterdmhealthcare.com Email: investors@asterdmhealthcare.com
Aster DM Healthcare — Q2 FY2024 Earnings Presentation on 6ix