Metropolis Healthcare Ltd. · NSE:METROPOLIS
Metropolis Healthcare — Q1 FY2022 Earnings Presentation
62 slides from Metropolis Healthcare's earnings presentation, Aug 6, 2021
Slide 1: Intimation of Investor Presentation to stock exchanges
Ref: MHL/Sec&Legal/2021-22/36 Date: August 6, 2021 To, Head, Listing Compliance Department Head, Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Dalal Street, Exchange Plaza, Plot No. C/1. G Block, Mumbai - 400 001. Bandra -Kurla Complex,
Slide 2: Reaching Out Responsibly - Investor Presentation August 2021
Reaching Out RESPONSIBLY Investor Presentation - August 2021
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: Q1FY22 Performance
QiFY22 Performance...
Slide 5: Q1FY2022 - Performance Snapshot
Q1FY2022 - Performance Snapshot Revenue Patient Visits Highest Ever Quarterly Revenue Rs. 327 Crores 3.5 Mn +128% YoY | +12% QoQ +158% YoY | +11% QoQ Highest Ever Quarterly EBITDA EBITDA Margin (Before CSR & ESOP) No. of Tests Crossed Rs. 300 Crores Quarterly 32.3% 6.5 Mn Revenue & Rs. 100 Crores EB
Slide 6: Non-Covid business continues to grow in Q1FY22
Non-Covid business continues to grow in Q1FY22… Non-Covid Revenue +159% 251.0 264.2 223.6 189.1 Non-Covid – The sustainable part of the 101.8 business continues to be resilient Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 ✓ Company recorded its highest ever quarterly revenue in Q1FY22; crossed Rs. 300 Crores
Slide 7: Covid tests surges, Non-Covid sustains in Q1FY22
Covid tests surges, Non-Covid sustains in Q1FY22 Non-Covid Revenue 99.6 83.5 81.1 ✓ Covid revenue spiked in April with second Apr-21 May-21 Jun-21 wave of covid-19 and moderated in May & June as cases reduced ✓ Non-covid revenue continued growth in Covid Revenues 30.6 Q1FY22 with increasing tests to
Slide 8: Q1FY22 Consolidated Financial Performance
Q1FY22 Consolidated Financial Performance EBIDTA Rs. (In Crs.) Reported EBIDTA Rs. Reported PAT Revenue Rs. (In Crs.) Before CSR & ESOP (In Crs.) (In Rs. Crs.) 326.8 103.5 105.6 96.8 103.0 74.9 ~Rs. 11.9 Crs. 291.7 11.9 is on account of exceptional 61.3 gain net of tax 143.1 (Gross ~Rs. 16 63.0 Crs.
Slide 9: Operating Performance
Operating Performance No. of Patient Visits (In Mn.) Annual Trend Q1FY22 vs Q1FY21 +158% +8.9% 10.0 9.8 3.5 8.9 7.7 7.0 3.5 1.4 FY17 FY18 FY19 FY20 FY21 Q1FY22 Q1FY21 Q1FY22 No. of Tests (In Mn.) Annual Trend Q1FY22 vs Q1FY21 +7.4% 19.6 19.0 +147% 16.0 17.0 14.3 6.5 6.5 2.6 FY17 FY18 FY19 FY20 FY21
Slide 10: Operating Performance
Operating Performance Revenue Per Patient (In Rs.) +6.9% +25.6% -11.1% 1,015 836 854 856 925 1,028 1,043 778 819 920 927 FY17 FY18 FY19 FY20 FY21 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 Total Business Non-Covid Business Total Business Revenue Per Test (In Rs.) +8.3% +17.1% -7.4% 524 539 447 436 47
Slide 11: Steady Focus on Balance Sheet continues
Steady Focus on Balance Sheet continues Debtor Days*# Working Capital Days* 41 36 12 ✓ We have continued to focus on collection 4 efficiency and improved our Debtor days ✓ Metropolis is a Zero-Debt company with Mar-21 Jun-21 Mar-21 Jun-21 growing cash & cash equivalents year on OCF to EBIDTA Cash an
Slide 12: Network Strategy
Network Strategy Laboratory Network Service Network Rationalization Lab on Lease ARC Period +161 centers Greenfeild Third Party PSCs + 4 labs Owned PSCs 2,731 2,716 2,555 124 125 129 2,336 598 573 119 498 106 20 20 21 575 8 19 1,650 520 1,873 1,806 1,889 98 100 104 105 108 1,506 879 251 255 260 251
Slide 13: Share of B2C Business in Focus Cities (Non-Covid) at 59% in Q1FY22
Share of B2C Business in Focus Cities (Non-Covid) at 59% in Q1FY22 ✓ Excluding Covid-19 revenues, our B2C contribution B2C Contribution in Focus Cities (Non-Covid Business) (Rs. in Crs.) continues to increase ✓ Our aspirations is to achieve 65% B2C contribution in focused cities in coming years rema
Slide 14: Revenue contribution from non-core geographies increasing
Revenue contribution from non-core geographies increasing… Revenue Mix between Focus, Seeding & Others Cities (Total Business) Revenue Mix between Geographies (Total Business) 7% 8% 4% 10% 19% 20% 22% 24% Q1FY21 Q1FY22 Q1FY21 Q1FY22 19% 58% 62% 22% 4% 56% 59% 6% Focus Seeding Others North South East
Slide 15: Revenue contribution from Specialized tests increased from 34% to 41%
Revenue contribution from Specialized tests (Non-Covid) increased from 34% to 41% Q1FY21 Q1FY22 Q1FY21 Q1FY22 Volume Mix (Total Business) Value Mix (Total Business) 1% 6% 13% 4% In overall mix, value of 13% 14% 2% 28% specialized mix has remain 37% 44% same due to steep decline 29% 30% in covid test
Slide 16: Home Visit Service Gaining Traction
Home Visit Service Gaining Traction Ramping up Home Testing Business Home Visits Revenue (Total Business) Home Visits Revenue (Non-Covid Business) Rs. Crs. 136 Rs. Crs. +70% 80 37 +130% 24 22 Achieved 27% of FY21 Achieved 31% of FY21 11 Revenue in Q1FY22 Revenue in Q1FY22 Q1FY21 Q1FY22 FY21 Q1FY21 Q
Slide 17: Digital engagement driving huge growth in brand equity
Digital engagement driving huge growth in brand equity Q1FY22 Business Impact 8x increase in website Faster Growth in traffic YoY Home Visit revenue 26 MN Audience reach via Digital Mediums 3x increase in call ~Rs.29 Crs. Revenue in volume due to Q1FY22 through leads Digital strategy is playing Digi
Slide 18: Creating a Digital Ecosystem for all stakeholders
Creating a Digital Ecosytem for all stakeholders Participate in Health Ecosytem ✓ Increase our participations in the growth as health-tech ecosystem expands & in active conversation with all leading platforms and aggregators for connectivity For our Customers ✓ Driving digital discovery of our servi
Slide 19: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit & Loss Statement (Rs. Crs.) Q1FY22 Q1FY21 Y-o-Y Q4FY21 Q-Q FY21 FY20 Y-o-Y Revenue from Operations 326.8 143.1 128% 291.7 12% 998.0 856.4 17% Cost of Raw Material Consumed 72.9 38.2 70.2 252.2 204.1 Laboratory Testing Charges 2.0 2.0 1.6 5.4 6.9 Employee E
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Mar-21 Mar-20 Equity & Liabilities (Rs. Crs.) Mar-21 Mar-20 Non-current assets 396.0 355.2 Equity 708.1 525.2 Property, Plant and Equipment 115.1 121.2 Equity Share capital 10.2 10.1 ROU Assets 103.1 59.7 Other equity 696.4 513.4 Goodwill 90.3 90.3 Non Co
Slide 21: Metropolis MD bestowed with Mumbai Ratna Award
Metropolis MD bestowed with Mumbai Ratna Award Ms. Ameera Shah has been bestowed with Mumbai Ratna Award in recognition of her remarkable contributions to the community during the COVID-19 pandemic 20
Slide 22: FY22 and beyond
FY22 and beyond...
Slide 23: Way Forward for FY22 and beyond
Way Forward for FY22 and beyond… Add 90 labs and 1,800 service centers over next 3 years and strengthen our leadership Network Expansion position in existing geographies and build Metropolis brand in new geographies Expand Home Visit coverage to 100 locations in 1 year and cover 200 locations within
Slide 24: 1. Network Expansion Plan
1. Network Expansion Plan Metropolis Network Expansion Plan Laboratory Network Service Network +72% +70% 215 4,355 90 1,800 125 2,555 FY21 Addition FY24E FY21 Addition FY24E over 3 years over 3 years ✓ Expand to existing & newer locations – Aim to expand the service network to existing locations to
Slide 25: 2. Driving growth via digitally driven, asset-light home-visit segment
2. Driving growth via digitally driven, asset-light home-visit segment Asset Light Digital demand Rapid scale up via technology drive generation processes + 3rd party network Capturing Changing Demand 1 Integrated CRM to Covid has brought a strong shift in Captured via “At-home” consumption of provi
Slide 26: 3. Deepening our digital touch points, capability throughout our value chain
3. Deepening our digital touch points, capability throughout our value chain Digitally engaging Scaling up Digitizing distribution & logistics: Digital Customer Engagement: customers and operational Launched Unified Patient Launching an end-to-end online partners capabilities Information System lead
Slide 27: 4. Levers for Margin Improvement
4. Levers for Margin Improvement Increased Utilization and Product Mix Higher utilization of Labs and increase in patient visits coupled with superior product mix 01 Increased Home Visits Cost Efficiency Initiatives Increase Home Visits revenue with focused Encouraging innovation and critical thinki
Slide 28: Overview
Overview
Slide 29: 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 30: 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 31: 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 3
Slide 32: 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 31
Slide 33: 1a. Diagnostic Industry Poised to grow
1a. Diagnostic Industry Poised to grow… Indian Healthcare Industry Size of Indian Diagnostics Market Indian Diagnostics Industry Breakup Source – IIFL Diagnostics Report (in Billion Rs.) 6.0% +11.6% 924 9.0% 4.0% Healthcare Delivery - Hospitals 776 42% Pharma Pathology +16.4% 596 13.0% Medical Devic
Slide 34: 1b. 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 35: 2. 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 36: 3. 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 37: 4. 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 38: 5. 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 39: 6a. 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 40: 6b. Globally Compliant Quality Standards
6b. Globally Compliant Quality Standards “Global Lab Accreditations” No. of Audits Conducted by PAC Team FY 17-18 18-19 19-20 20-21 665 1,312 1057 583 ✓ PAC Team: Special Pre Analytical Care Team constituted as part of the Quality Assurance Team ✓ This team conducts thorough internal audits as per N
Slide 41: 7. People are our greatest asset
7. People are our greatest asset Leadership Team Investment in future leaders aligned to vision of the company. across levels and ahead of time. 2. Decision making Business models at par with changes 1. Leadership and Strengthening Structures to in the fields of Technology & structure support object
Slide 42: 8. 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 43: 8a. 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 44: Future Strategy
Future Strategy 01 Increase Services 02 Increase Scale 43
Slide 45: 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 46: Sustainable Growth across Network
Sustainable Growth across Network Network of 210 Cities Criteria Strategy % of Revenue for FY21 (Total Business) ✓ Increasing productivity of Collection Centers ✓ Enhancing our Laboratory Capacity and Test Menu by adding Latest Machines and Technology ✓ High Potential Market Focus Cities ✓ Expanding
Slide 47: Focus on Profitable B2C Business: Increase B2C sales mix
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 48: 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 49: Successful Track Record of Inorganic Strategy: 23 Acquisitions in 16 years
Successful Track Record of Inorganic Strategy : 23 Acquisitions in 16 years Revenue at the time of Few of the Acquired Companies Year of Acquisition Location Revenue for FY21 acquisition Sudharma Metropolis Health Services 2003 Kerala Rs. 1.8 Crores Rs. 44.9 Crores Private Limited Golwilkar Metropol
Slide 50: 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 51: CSR Activities 2020-21
CSR Activities 2020-21 Nutrition Box Project ✓ Nutrition boxes delivered to doctors and healthcare workers posted in COVID Care Centers, Municipal Corporations and COVID Hospitals by Metropolis with the help of WE Foundation Covid Testing Projects ✓ Project Ummeed – In association with Citibank & CI
Slide 52: Historical Financial & Operational Performance
Historical Financial & Operational Performance
Slide 53: Better than industry growth
Better than industry growth Revenue (In Rs. Crs.) Bolstering Growth in Wellness Segment Metropolis Wellness revenue contribution for +16% 998 Metropolis is 6% in FY21 856 760 644 545 This market is expected to grow at a CAGR of 20% over next 3 financial years (Frost & Sullivan) FY17 FY18 FY19 FY20 F
Slide 54: Well growing B2C Mix
Well growing B2C Mix Retail contribution in Focus Cities (Non-Covid) to Total Revenue 56% 58% 52% 48% 45% Primary Strategy of the Company is to increase the Retail share in focus cities to 65% FY17 FY18 FY19 FY20 FY21 Chart shows B2C contribution over the years in focus cities; Mumbai, Chennai, Bang
Slide 55: Financial Highlights
Financial Highlights Revenue (In Rs. Crs.) Reported EBITDA (In Rs. Crs.) ROCE (%) +16.3% 998 288 +16.8% 46.5% 856 42.8% 760 232 40.0% 40.9% 206 38.3% 644 173 545 155 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA (%) Reported PAT (In Rs. Crs.) ROE (%) 28.4% 28.9% 1
Slide 56: Profit & Loss Statement
Profit & Loss Statement Profit & Loss (Rs. Crs.) FY21 FY20 FY19 FY18 FY17 Revenue from Operations 997.8 855.5 760.1 643.6 544.7 Cost of Material Consumed 252.2 204.1 173.5 145.9 135.1 Laboratory testing charges 5.4 6.9 5.6 5.7 2.5 Gross Profit 740.1 644.5 581.0 492.0 407.1 Gross Profit (%) 74.18% 75
Slide 57: Balance Sheet
Balance Sheet Assets (Rs. Crs.) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Equity & Liabilities (Rs. Crs.) Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Non-current assets 396.0 355.2 247.9 230.1 230.1 708.1 Equity 525.2 420.0 429.1 344.1 Property, Plant and Equipment 115.1 121.2 116.7 112.3 105.2 Equity Share capital
Slide 58: Board of Directors and Management Team
Board of Directors and Management Team
Slide 59: Board of Directors
Board of Directors Dr. Sushil Kanubhai Shah Ameera Sushil Shah Chairman & Executive Director Managing Director Holds a bachelor’s degree in Medicine and Surgery and Holds a bachelor’s degree in Business Administration a degree of Doctor of Medicine in Pathology and from the University of Texas and a
Slide 60: 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 61: Recent Awards and Accolades
Recent Awards and Accolades Period Particulars Our MD, Ms. Ameera Shah has won the Mumbai Ratna Award at the Mumbai Ratna Awards in July July 2021 2021 for her exceptional contribution during the pandemic Our MD, Ms. Ameera Shah has won the Woman of the Year Award organized by the Ladies Wing July 2
Slide 62: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Metropolis Healthcare Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L73100MH2000PLC192798 CIN - U74140MH2010PTC204285 Mr. Rakesh Agarwal - CFO Mr. Shogun Jain / Mr. Shrenik Shah Email Id – rakesh.agarwal@metropolisindi
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