Shalby Ltd. · NSE:SHALBY
Shalby — Q4 FY19 Earnings Presentation
61 slides from Shalby's earnings presentation, May 27, 2019
Slide 1: Multi-Specialty Hospitals - Investor Presentation Filing Letter
MULTI-SPECIALTY HOSPITALS - May 25,2019 The Listing Department Corporate Service Department National Stock Exchange of India Ltd BSE Limited Mumbai 400 051. Mumbai 400 001. Scrip Code : SHALBY Scrip Code: 540797 Sub: lnvestor Presentation for the Fourth Quarter and year ended 31" March 2019, disclos
Slide 2: Investor Presentation Q4 FY19 & FY19
Investor Presentation Q4 FY19 & FY19
Slide 3: Important Disclosure
Important Disclosure No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its da
Slide 4: Because passion drives perfection and perfection drives performance
…because passion drives perfection… …and perfection drives performance “ 3
Slide 5: Shalby Limited
1 Shalby Limited A proxy for growth in the Indian Healthcare space 4
Slide 6: Current Scale of Operations
Current Scale of Operations 11 Hospitals 55% Operating bed to total bed capacity 2,012* Total Bed Capacity 47% Bed Occupancy (based on census beds) 1,102** Operational beds 31% 12 year CAGR Revenue 887 Census Beds 36% 12 year CAGR EBITDA 165 Non Census Beds 500+ Doctors & 2600+ Support Staff Double-
Slide 7: Promoter
Promoter Qualifications Achievements Academic Qualifications: • Over two and a half decades of professional work experience • MBBS across UK, USA and India. Serving as Director, Department of Knee • MS (Orthopaedics) Replacement at Shalby Hospitals since 1993 Professional Qualifications • Dr. Shah i
Slide 8: Our Journey so far
Our Journey so far… Started professional Operationalized First Commissioned Shalby Jabalpur practice with a 6-bed Multispecialty Hospital of the [Bed Capacity: 233] facility group Shalby SG Commissioned Shalby Indore [Bed Capacity: 201] [Bed Capacity: 243] 1994 2004 2007 2011 2015 2017 6 27 228 674
Slide 9: Reach and Presence - Hospitals
Reach and Presence - Hospitals Network of Hospitals in India with bed capacity Mohali – 145 beds Jabalpur – 233 beds Indore – 243 beds Jaipur – 237 beds Ahmedabad SG – 201 beds Krishna – 220 beds Vijay – 27 beds Mumbai – 50 beds Naroda – 267 beds (Ghatkopar) Vapi – 146 beds Surat – 243 beds Mumbai –
Slide 10: Reach and Presence - OPD
Reach and Presence - OPD Network of Outpatient Clinics in India International Footprint Presence in Africa Kenya Tanzania Addis Ababa (1) Ethiopia Sudan (1) Sudan Eldoret Kisumu Nairobi (1) Rwanda (1) Nairobi (1) Rwanda Dar es Salaam (2) Outpatient clinics OPD Clinics Has a network of 40 patient out
Slide 11: Expansion Plans in Progress
Expansion Plans in Progress Investment Plans for Upcoming facilities •Bed Capacity 113 Nashik •Capex – Rs 25 Crore Mumbai •Bed Capacity 175 [Santa Cruz] •Capex – Rs 150 Crore •Current bed capacity 50. Mumbai •Addition 100 beds [Ghatkopar] •Capex – Nil Total capex planned – Rs. 175 Crore for addition
Slide 12: Our Unique Business Model
2 Our Unique Business Model is the key to our outperformance 11
Slide 13: Our Business Model - features
Our Business Model – features Optimising Capex and Opex • Lowest Capex and Opex per bed due Optimize capex planning with Operational Efficiency due to optimal use of real-estate Inhouse projects to team better capex • Equipment planning and utilities planning planning • In-house planning teams • Foc
Slide 14: Typical concept of 200 bed capacity set-up
Typical concept of 200 (±20%) bed capacity set-up Facilities 10-15 kms away Local and Natural Footfalls from 4- 5 kms radius helps to fill up ~50% beds Balance ~50% – patients come in the name of doctors reducing thereby dependency on star doctors thus controlling doctor payout % 13
Slide 15: Our Business Models
Our Business Models… Fully Owned No fixed Efficiency is rental paramount Unique revenue No security Hospital Operate and sharing deposit Management Manage model [Revenue Contracts Sharing] No minimum guarantee 14
Slide 16: Role of OPDs for expansion
Role of OPDs for expansion Simultaneously hire local doctors Patients visit our and train them at clinics across Ahmedabad who Punjab India and abroad conduct OPDs in and around So we can start We analyze that city the facility with patient trends and Rajasthan low branding accordingly decide budget
Slide 17: Case for Expansion
3 Case for Expansion 16
Slide 18: The Opportunity Set
The Opportunity Set Population and Population Growth Rate of India Spilt of Indian Healthcare Industry by Segments (Historical and Expected) Total market size (2016): INR 9.2 trillion CAGR (2014-2020) 9% 4% 100%= 0.9% 1.27 billion 1.29 billion 1.32 billion 1.35 billion 13% 54+ years 100% 2.6% 6% 35-
Slide 19: The Opportunity Size
The Opportunity Size Indian Healthcare Delivery Industry size (2015-2020) Spilt of Public and Private Hospitals in India (INR in Trillion) 11.7 10 30% 8.5 7.3 70% 6.2 5.4 Private Corporate Hospitals account to less Public Hospitals Private Hospitals than 10% of the 2015 2016(E) 2017(E) 2018(E) 2019(
Slide 20: Recent transformation
Recent transformation • Private sector investment has been increasing due to change in mind-set and better returns on investment • Healthcare businesses can also be profitable as long the costs are affordable • The advent of information technology has given a fillip to the healthcare business making
Slide 21: Case study - the Cardiac growth story in India
Case study - the Cardiac growth story in India 2014 ~ 2,00,000 surgeries and Facilities 10-15 kms away 8,00,000 CAGR – 29% in 30 years. angioplasties Currently growing @ 2-3% 2004 ~ 50,000 surgeries 1994 ~5000 Wide procedure penetration – surgeries to Tier 2 and 3 cities 1984 ~500 surgeries 20 Sourc
Slide 22: Knee Replacement - the big opportunity
Knee Replacement - the big opportunity 2017 ~1,75,000 surgeries 2010 Last year, In ~54,000 United States surgeries ~0.8 mn knee replacements in a population of 2000 ~300 mn ~6000 India has a surgeries similar affording population. Hence, direct potential to grow to 8 lacs Knee 1994 Asian replacement
Slide 23: Growth Drivers for Shalby
Growth Drivers for Shalby Pioneer in Joint Replacements in the country, best positioned to capitalize on it Continue to gain Opportunities traction within within Homecare Oncology and Huge scope for Neurology organic growth and operating leverage Increasing focus on quaternary treatments like Cardia
Slide 24: Conducive Government Policies Despite Challenges
Conducive Government Policies Despite Challenges Swastha Bharat, Smriddha Bharat. Demographic dividend realization impossible without proper healthcare Rashtriya Samaj Beema Yojana: 100 mln families will get Rs 500,000 per year for their families to cover secondary and tertiary hospital expenses 100
Slide 25: Track record
SHALBY MULTI-SPECIALTY —HOSPITALS— —— Track record
Slide 26: Best in class economic returns
Best in class economic returns 1200 40% 5020 4706 250% 1000 925 907 30% 26% 25% 25% 24% 149% 3,923 4020 150% 20% 778 800 16% 20% 24% 20% 3,305 21% 55% 38% 660 687 19% 3020 29% 26% 36% 2,776 2,927 50% 14% 14% 579 2,617 600 11% 10% 2,298 482 14% 6% 5% 13% 19% 20% 439 2020 1,685 -50% 400 0% 1,332 262 1
Slide 27: Best in class economic returns
Best in class economic returns RoCE% RoE% 8,553 8408 28% 31% 7,6157798 26% 20% 88% 66% 17% 15% 51% 13% 11% 36% 9% 26% 20% 22% 6% 15% 14% 13% 4% 10% 7% 2% 5,488 4,153 2,508 2,544 2,109 1,814 1,817 1,487 1,207 844 1,096 852 239 181 314 203 259 345 481 163 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 F
Slide 28: Performance Q4FY19
Performance Q4FY19 27
Slide 29: Key Achievements of the Quarter
Key Achievements of the Quarter Cancer Surgeon team at Shalby successfully Gall Bladder Cancer Blockage in performed Esophageal in an 84 year old Vein supplying blood Cancer (Cancer of the patient cured at to Liver, removed in Food Pipe) through Shalby through a rare surgery at Keyhole Surgery surge
Slide 30: IP and OP Count (Quarterly Trend)
IP and OP Count (Quarterly Trend) 29
Slide 31: Surgeries Count (Quarterly Trend)
Surgeries Count (Quarterly Trend) 30
Slide 32: Surgeries Count (Quarterly Trend)
Surgeries Count (Quarterly Trend) Arthroplasty Vs Others 47% 50% 51% 48% 49% 50% 53% 54% 55% 56% 55% 58% 53% 50% 49% 52% 51% 50% 47% 46% 45% 44% 45% 42% Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Arthroplasty Others 31
Slide 33: Performance Synopsis Q4 FY19
Performance Synopsis Q4 FY19 Quarter Ended Quarter Ended Particulars % of Revenue % of Revenue Growth 31-03-19 31-03-18 Total Revenue (INR in million) 1153.9 1110.4 4% Total EBITDA (INR in million) 169.8 14.7% 172.1 15.5% (1%) Bed Capacity (Nos.) 2012 2012 N.A Operational Beds (Nos.) 1102 1102 N.A A
Slide 34: Financial Highlights Q4FY19 Standalone
Financial Highlights Q4FY19 Standalone (INR in million) Quarter Ended Quarter Ended Particulars 31-03-19 % of Revenue 31-03-18 % of Revenue Growth Revenue from Operations 1126.8 1083.7 4.0% Other Income 27.1 26.7 1.6% Total Income 1153.9 1110.4 3.9% Expenses Materials & Consumables 316.5 27.4% 264.4
Slide 35: Financial Parameters Q4 FY19
Financial Parameters Q4 FY19 1153.9 172.1 182.86 1110.4 169.8 33.9 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Total Revenue ( In Rs. Mn.) EBITDA ( In Rs. Mn.) PAT ( In Rs. Mn.) 34
Slide 36: ARPOB and ALOS (Quarterly)
ARPOB and ALOS (Quarterly) 30900 4 30760 30700 3.6 30625 3.5 30500 3 30300 30100 2.5 2.4 29900 2 29700 1.5 29500 29300 1 Q4 FY19 Q4 FY18 ARPOB ( In Rs / day) ALOS * Decrease in ALOS is witnessed due to drastic increase of day care procedures like Radiation therapy, Dialysis etc in Units having < 2 y
Slide 37: Revenue Mix Q4FY19
Revenue Mix Q4FY19 Specialty Mix Payer Profile 9% 5% 4% 5% 22% 7% 43% 51% 9% 11% 22% 12% Self Pay Corporate Government TPA Corporate Private Arthroplasty Critical Care & General Medicine Cardiac Science Oncology Other Ortho Neurology Nephrology Others 36
Slide 38: Surgery Count and Cost Structure Q4FY19
Surgery Count and Cost Structure Q4FY19 2% 6% 21% 19% 3% 3% 45% 29% 4% 4% 6% 27% 6% 11% Arthroplasty Orthopaedic Q4 FY19 General Surgery Nephrology Advertising & Promotion Administrative Expenses Gynecology & IVF Cosmetic & Plastic Surgery Employee Cost Other Operative Expenses Oncology Others Fees
Slide 39: Bed Count Split (Quarterly)
Bed Count Split(Quarterly) 2,012 2,012 1,102 1,102 396 417 Q4 FY18 Q4 FY19 Bed Capacity Operational Occupied 38
Slide 40: Maturity Profile - Q4FY19
Maturity Profile – Q4FY19 Avg. Operational Non- Non-Census Total Bed Maturity Profile Occupied Census Beds Beds Operational Beds Capacity Beds Beds 4 years + (SG; Vijay; 159 325 57 382 212 594 Krishna; Vapi) 2-4 years (Jabalpur, 124 309 52 361 115 476 Indore) < 2 years (Jaipur; Naroda; 134 309 583 8
Slide 41: Maturity Profile - Q4 FY19 vs Q4 FY18 - Operational Parameters
Maturity Profile – Q4 FY19 vs Q4 FY18 – Operational Parameters Q4 FY 19 Q4 FY 18 Maturity Profile IP Count OP Count Surgery Count Maturity Profile IP Count OP Count Surgery Count 4 years + 4 years + (SG; Vijay; 4005 29507 2807 (SG; Vijay; 4294 30140 2963 Krishna; Vapi) Krishna; Vapi) 2-4 years 2-4 y
Slide 42: Maturity Profile - Q4FY19 - with Revenue mix
Maturity Profile – Q4FY19 – with Revenue mix Maturity % of Total Non Arthroplasty ARPOB(Rs) ALOS(Days) EBITDA % Profile Revenue Arthroplasty 4 years + (SG; Vijay; 51% 30% 21% 40966 3.57 27% Krishna; Vapi) 2-4 years (Jabalpur, 20% 4% 16% 20460 3.63 3.8% Indore) < 2 years (Jaipur; Naroda; Surat; 29% 9
Slide 43: Track record (Yearly Trend)
Track record (Yearly Trend) 42
Slide 44: IP and OP Count (Yearly Trend)
IP and OP Count (Yearly Trend) OP Count 296197 222,970 166,519 152,921 125,981 128,821 110,919 55,143 33,285 43,409 7,632 19,295 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 43
Slide 45: Surgeries Count (Yearly Trend)
Surgeries Count (Yearly Trend) Surgeries Count: Arthroplasty vs Others 11148 9,059 6,280 7,399 6,361 5,586 3,827 2,628 2,014 8,006 7,816 8,495 8,760 371 6,856 7,330 154 5,166 6,019 66 3,576 4,442 1,900 2,596 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Arthroplasty Others 44
Slide 46: Surgeries Count (Yearly Trend)
Surgeries Count (Yearly Trend) Arthroplasty Vs Others 3% 6% 9% 31% 34% 39% 44% 45% 46% 49% 52% 56% 97% 94% 91% 69% 66% 61% 56% 55% 54% 51% 48% 44% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Arthroplasty Others 45
Slide 47: Performance Synopsis FY19
Performance Synopsis FY19 Year Ended Year Ended Particulars % of Revenue % of Revenue Growth 31-03-19 31-03-18 Total Revenue (INR in million) 4708.5 3942.35 19.4% Total EBITDA (INR in million) 908.7 19.3% 930.67 23.6% (2.4%) Bed Capacity (Nos.) 2012 2012 N.A Operational Beds (Nos.) 1102 1102 N.A Ave
Slide 48: Financial Highlights FY19 Standalone
Financial Highlights FY19 Standalone (INR in million) Year ended Year ended Particulars 31-03-19 % of Revenue 31-03-18 % of Revenue Growth Revenue from Operations 4611.1 3855.2 19.6% Other Income 97.5 87.1 11.9% Total Income 4708.5 3942.4 19.4% Expenses Materials & Consumables 1215.4 25.8% 947.7 24.
Slide 49: Financial Parameters FY19
Financial Parameters FY19 930.7 440.2 4708.5 908.7 321 3942.4 FY19 FY18 FY19 FY18 FY19 FY18 Total Revenue ( In Rs. Mn.) Operational Ebitda ( In Rs. Mn.) PAT ( In Rs. Mn.) 48
Slide 50: ARPOB and ALOS (Yearly)
ARPOB and ALOS (Yearly) 4 32000 3.7 3.5 31564 31500 31235 3 31000 2.7 2.5 30500 2 30000 1.5 29500 1 FY19 FY18 ARPOB ( In Rs / day) ALOS * Decrease in ALOS is witnessed due to drastic increase of day care procedures like Radiation therapy, Dialysis etc in Units having < 2 years of Maturity Profile 49
Slide 51: Revenue Mix FY19
Revenue Mix FY19 Specialty Mix Payer Profile 10% 5% 4% 15% 4% 7% 45% 8% 20% 60% 11% 11% Self Pay Corporate Government TPA Corporate Private Arthroplasty Critical Care & General Medicine Cardiac Science Oncology Other Ortho Neurology Nephrology Others 50
Slide 52: Surgery Count and Cost Structure FY19
Surgery Count and Cost Structure FY19 Cost Structure 2% 6% 20% 18% 3% 3% 44% 3% 5% 26% 6% 6% 13% 26% Arthroplasty Orthopaedic General Surgery Nephrology FY19 Gynecology & IVF Cosmetic & Plastic Surgery Materials & Consumables Fees to Doctors and Consultants Oncology Others Other Operative Expenses E
Slide 53: Bed Count Split (Yearly)
Bed Count Split(Yearly) 2,012 2,012 1,102 1,102 413 335 FY18 FY19 Bed Capacity Operational Occupied 52
Slide 54: Maturity Profile - FY19 - with Revenue mix
Maturity Profile – FY19 – with Revenue mix Maturity % of Total Non Arthroplasty ARPOB(Rs) ALOS(Days) EBITDA % Profile Revenue Arthroplasty 4 years + (SG; Vijay; 51% 31% 20% 42107 3.32 30% Krishna; Vapi) 2-4 years (Jabalpur, 22% 4% 18% 20735 3.64 9.0% Indore) < 2 years (Jaipur; Naroda; Surat; 28% 10%
Slide 55: Maturity Profile - Operational Parameters
Maturity Profile – Operational Parameters FY 19 FY 18 Maturity Profile IP Count OP Count Surgery Count Maturity Profile IP Count OP Count Surgery Count 4 years + 4 years + (SG; Vijay; 17019 115093 10792 (SG; Vijay; 15,989 110710 12,026 Krishna; Vapi) Krishna; Vapi) 2-4 years 13640 91021 4193 2-4 yea
Slide 56: Maturity Profile - FY19 - with Revenue mix
Maturity Profile – FY19 – with Revenue mix Maturity % of Total Non Arthroplasty ARPOB(Rs) ALOS(Days) EBITDA % Profile Revenue Arthroplasty 4 years + (SG; Vijay; 51% 30% 21% 42107 3.32 30% Krishna; Vapi) 2-4 years (Jabalpur, 22% 4% 18% 20735 3.64 9.0% Indore) < 2 years (Jaipur; Naroda; Surat; 28% 10%
Slide 57: Shareholding Pattern
Shareholding Pattern 0.31% Shareholding as on 31st March 2019 0.55% 0.03% Promoter Individuals 0.91% 0.30% 0.12% Resident Individuals 0.94% 0.05% Foreign Portfolio - Corp 4.85% 5.54% Bodies Corporates Employee Trusts 7.00% Alternative Investment Fund HUF Non Resident Indians Mutual Funds Non Residen
Slide 58: Dividend for FY 2018-19
Dividend for FY 2018-19 We take pleasure to inform that Company has recommended dividend of 5% .
Slide 59: Our Strengths and Differentiators
Our Strengths and Differentiators Strong brand, Increasing focus Experienced global Optimized on Quaternary promoters with leadership in Business Model treatments such hands-on Joint now being as Oncology and involvement Replacement replicated Organ transplants Even after the Strong emphasis Leaders
Slide 60: Detailed Information
Detailed Information For more detailed information please click on the link below: • Q4FY19 result • Q3FY19 result • Q2FY19 result • Q1FY19 result • Monitoring Agency Report for IPO proceeds • FY19 result 59
Slide 61: Thank you
Thank you SHALBY LIMITED Regd Off: Opp. Karnavati Club, S.G. Road, Ahmedabad – 380015, Gujarat, India. Phone: 079 4020 3000 Fax: +91 79 4020 3120 | Website: www.shalby.org | CIN: L85110GJ2004PLC044667 Script code: BSE: 540797 | NSE: SHALBY