Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Investor Presentation (October 2022)
32 slides from Healthcare Global Enterprises's investor presentation, Oct 14, 2022
Slide 1: Exchange cover letter: Updated Investor Presentation
October 14, 2022 National Stock Exchange of India Limited, BSE Limited, Compliance Department, Compliance Department, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (East), Mumbai - 400051, Dalal Street, Mumbai - 400001, Maharashtra, India Maharashtra, India Dear Sir/Madam,
Slide 2: Healthcare Global Enterprises Limited Discussion Material
HEALTHCARE GLOBAL ENTERPRISES LIMITED D I SC USSI ON MATER I AL October 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and its contents are confidential and are not for release, publication or distribution, in whole or in part, directly or indirectly, in or into or from India, the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful.
Slide 4: Pioneered Scalable Model for Comprehensive Cancer Care
Pioneered Scalable Model for Comprehensive Cancer Care Largest oncology focused Marquee leadership team and hospital chain with a pan India 1 5 experienced management network Comprehensive cancer care Leveraging digital model with a focussed factory 2 6 transformation to strengthen approach patient
Slide 5: Largest Pan-India Oncology Hospital Chain
Largest Pan-India Oncology Hospital Chain Best-in-class cancer care by adopting globally acclaimed practices and state-of-the-art technology Largest cancer care network in India 33+ years of Clinical Excellence Center of Excellence (CoE) Emerging Cancer Care Centers Established Cancer Care Centers (
Slide 6: High Patient Volume driving Oncology Growth in India
High Patient Volume driving Oncology Growth in India Under-coverage of Population Indian Cancer Care Industry (INR bn) – Projected Growth 89% 91% CAGR 12% 38% 3% 263 10% 1% India China UK USA 3% Realization Affordability Population coverage by national cancer registries 3% Relapse Driven Increasing
Slide 7: High Growth Headroom due to Low Population Coverage
High Growth Headroom due to Low Population Coverage Low Early-stage Diagnosis in India … …leading to High Mortality to Incidence Ratio 81% 88% 91% 71% 73% 70% 61% 51% 52% 56% 29% 31% 30% 31% 26% 25% 28% 33% 19% 15% 17% 22% 23% 8% Breast Cancer Head and Neck Lung Cancer Breast Cancer Head and Neck Lu
Slide 8: Focused Factory Approach is critical for Quality of Life
Focused Factory Approach is critical for Quality of Life Cancer requires specialized care available at focused players only, with emphasis on clinical expertise Cancer has Unique Solutions available only at HCG’s Focused Factory Challenges that Requires Comprehensive Cancer Approach for Most a Speci
Slide 9: Dominant Network in Cancer Care with Market Leadership across 13 out of 18 Cities
Dominant Network in Cancer Care with Market Leadership across 13 out of 18 Cities HCG is committed to provide last mile cancer care across India and is the largest player with >1.6x footprint of CCCs as compared to the next largest player MARKET LEADERSHIP ACROSS METROS & NON-METROS REGIONS(1) # of
Slide 10: Successfully Decoded Non-metro Business Model
Successfully Decoded Non -metro Business Model MARKET LEADER IN ALMOST 9 NON-METRO CENTERS WITH SUCCESSFUL SCALABLE ALL NON-METRO CENTERS HIGH-TEEN ROCE NON-METRO MODEL Jaipur 13 12 9 9 Baroda Ranchi Nagpur Key Parameters(1) Metro Non-Metro Cuttack Bhavnagar Nashik Vishakhapatnam Revenue CAGR(2) 20%
Slide 11: One Stop Solution with Superior Clinical Expertise
One Stop Solution with Superior Clinical Expertise END-TO-END CANCER CARE SERVICES AT HCG Expertise in Handling DIAGNOSTICS Complex Cases (1) P hysical Lab o rato ry D igita l D igital P E T E xa min at io n Te st s Pat h o lo gy 4.5k+ Genomic based TREATMENT Chemo sessions Ro b o t ic Ta rgete d D
Slide 12: Many Firsts of Cutting-edge Technology Introduction for Integrated Cancer Care
Many Firsts of Cutting -edge Technology Introduction for Integrated Cancer Care TRACK RECORD OF BEING 1 st TO State-of-the-art Equipment in each modality LAUNCH ADVANCED TECHNOLOGY IN DIAGNOSTICS Total P E T CTs : 1 7 INDIA A I- b ase d 2022 Automated RIS PACS Skyra Et h o s / Digital PET Digital Br
Slide 13: Tumor Board based Treatment Approach for Patients
Tumor Board based Treatment Approach for Patients PIONEER OF TUMOR BOARD IN INDIA Tumor Board Approach ▪ 17+ years of nation wide, Tumor Boards held weekly Case-specific panel curated involving multiple specialists for ▪ Supplemented by multiple local tumor boards planning and implementing efficient
Slide 14: Led by Board of Directors comprising of Industry Veterans
Led by Board of Directors comprising of Industry Veterans Dr. BS Ajai Kumar Siddharth Patel Executive Chairman Non-Executive Non-Independent Director Visionary and key driving force of HCG, with an Partner at CVC. 20+ years of leading successful aim to make advanced cancer care accessible investment
Slide 15: Marquee Management Team supported by Experienced Promoters
Marquee Management Team supported by Experienced Promoters SEASONED PROMOTERS – LEADING VALUE CREATION Dr. BS Ajai Kumar CVC Capital Partners Founder and Executive Chairman Promoters & Board Members • Served as the CEO from 2005 to 2021 • Large portfolio of marquee healthcare • Over 40+ years of exp
Slide 16: Unique Oncologist Engagement Model to Develop and Retain Expert Clinicians
Unique Oncologist Engagement Model to Develop and Retain Expert Clinicians HCG has emerged as a major hub for attracting and developing top clinical talent, with its unique offerings of multi-modality learning and sub-specialization expertise providing very high value proposition 3 Build expertise i
Slide 17: Leveraging Digital Transformation to Reshape Patient and Partner Engagement
Leveraging Digital Transformation to Reshape Patient and Partner Engagement KEY DIGITAL TRANSFORMATION IMPERATIVES FOR HCG 2.0 Increasing reach and Omnichannel patient Ecosystem of digital Integrated patient- Improving customer Digitalized post awareness engagement healthcare lifecycle management co
Slide 18: Proven Track Record of Outperforming the Industry
Proven Track Record of Outperforming the Industry Expansion Phase Ramp Up Phase CAGR 15% ▪ Consistently upward 14,584 revenue trajectory CAGR 19% 13,978 10,956 ▪ Expansion mode by 9,787 10,134 setting up new cancer Revenue 8,307 7,001 (INR mn) 5,842 centres till FY19 to achieve large scale ▪ Demonst
Slide 19: Improved Performance Leading to Profitability
Improved Performance Leading to Profitability 1.7x 4,081 Revenue 3,520 3,581 3,646 2,981 3,231 (INR mn) 2,479 2,740 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 2.4x EBITDA 633 722 617 619 512 (INR mn) 300 378 394 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 +ve PAT 1,031 60 61 (223) (292) (45
Slide 20: High Revenue Growth with Well-diversified Segments
High Revenue Growth with Well -diversified Segments Expansive Geographical Presence (1) Diversified Revenue from Various Modalities (1) 2% Others(2) Maharashtra Others 2% Metros Karnataka Out-patients 17% 34% 53% 16% Medical Revenue by Revenue by 36% Oncology AP + East 20% Cluster City Type 19% 47%
Slide 21: Strong Operating Metrics with Significant Capacity Headroom
Strong Operating Metrics with Significant Capacity Headroom Key Driver Metric Indicator % Revenue Q1’22 Q4’22 Q1’23 40% Lead indicator of Volume Growth; key 20 # New 18 operating metric tracked by HCG; has 20%(1) 14 Registrations (‘000) correlation to out-patient revenue 35% 28 31 Key indicator for
Slide 22: Well Poised to Outpace Industry Growth
Well Poised to Outpace Industry Growth Visible growth opportunities supported by proven brand-driven play, professional approach and ready capacity A ▪ Strong growth across regions aided by market leadership and high incidence growth Demand Driven ▪ Existing facilities have significant capacity to s
Slide 23: Successful Playbook of Smart Acquisitions and Driving Sustained Growth Post Integration
Successful Playbook of Smart Acquisitions and Driving Sustained Growth Post Integration Time tested and highly replicable model of consistent revenue growth and profitability across geographies HCG Ahmedabad (Metro City) HCG Cuttack (Non-metro City) Acquisition 2013(1) 2008 Year Revenue c. 22% c. 38
Slide 24: Platform for Attractive Returns with Efficient Capital Allocation and Asset Light Expansion
Platform for Attractive Returns with Efficient Capital Allocation and Asset Light Expansion Capital efficient growth driven by ROCE breakup from Cancer Centers expansion in clinical 18-20% Vintage trials and diagnostics Pre-Corp. Post-Corp. Established Ongoing value Centers 24% 19% creation projects
Slide 25: HCG: Unique Long-term Value Creation Opportunity in Single Specialty Healthcare
HCG: Unique Long -term Value Creation Opportunity in Single Specialty Healthcare 1 2 3 4 5 Market leadership in Integrated cancer care High entry barriers for Profitable scalable Poised for high growth high growth industry for patient retention differentiated care business model with limited capex •
Slide 26: Strong Financial Profile with Low Leverage and Reduced Capex Needs
Strong Financial Profile with Low Leverage and Reduced Capex Needs Capex ▪ Low future capex (INR mn) 2,873 2,115 1,265 354 704 163 requirements 35% ▪ Focus on optimizing existing infra and Capex 22% brownfield projects (INR mn) 12% 3% 5% 4% ▪ Ongoing capex for two greenfield expansions - INR FY18 FY
Slide 27: Appendix
APPENDIX 26 www. h c g e l . c o m
Slide 28: Vision, Mission and Values
Vision, Mission and Values VISION MISSION Adding life to years by redefining To be an acclaimed healthcare institution healthcare through global in pursuit of medical excellence through innovation value-based medicine VALUES Quality Collaboration Innovation Integrity Leadership Enabling Limitless In
Slide 29: Select Awards and Accreditations
Select Awards and Accreditations Leading Oncology Brand with Industry Wide Recognition in 2020 -21 Accreditations Leader in Oncology Best Cancer Care Hospital Chain All India Critical Care Hospital Ranking Navbharat Healthcare Award - HCG Survey 2020 – HCG Bangalore Mumbai & Nagpur Top Specialized –
Slide 30: Setting Standards in ESG for conserving Natural Capital
Setting Standards in ESG for conserving Natural Capital Pioneer among hospitals to adopt Integrated Reporting (IR) Framework in FY19, with disclosures covering performance against Financial, Manufactured, Social, Intellectual, Natural & Human Capital Key Practices for Environment Conservation Enhanc
Slide 31: Enduring Patient Trust for 33+ Years
Enduring Patient Trust for 33+ Years “ We ’re gett ing t re ate d in t his hos pital for last 4 mont hs . Radiat ion, s urge r y & now c he mo INTEGRATED CARE t re at me nt is going on. We ’re sat is f ie d wit h all t he s e r v ice s and t re at me nt s ” - K ri sh n a Mu rt hy “Almost ev e r y in
Slide 32: Thank You
THANK YOU Company: HealthCare Global Enterprises Limited CIN: L15200KA1998PLC023489 For updates and specific queries, please visit www.hcgoncology.com or feel free to contact investors@hcgoncology.com © 2022 HealthCare Global Enterprises Limited., All Rights Reserved. HCG Logo is trademark of Health
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