Fortis Healthcare Ltd. · NSE:FORTIS

Fortis Healthcare — Merger or Acquisition (November 2011)

37 slides from Fortis Healthcare's merger presentation, November 2011

  1. Slide 1: Fortis Healthcare (India) Limited – Vision For Global Expansion

    Fortis Healthcare (India) Limited Vision For Global Expansion November 2011

  2. Slide 2: Disclaimer

    Disclaimer This presentation may not be copied, published, distributed or transmitted. The presentation has been prepared solely by the company. Any reference in this presentation to “Fortis Healthcare (India) Limited” shall mean, collectively, the Company and its subsidiaries. This presentation has

  3. Slide 3: Table Of Contents

    Table Of Contents I. Fortis Healthcare – An Overview II. Growth Strategy And Vision III. Acquisition Of Fortis Healthcare International - Highlights IV. Fortis Healthcare (India) Limited – Q2 FY ’12 Results Update 3

  4. Slide 4: I. Fortis Healthcare – An Overview

    I. Fortis Healthcare – An Overview 4

  5. Slide 5: Strategic Vision

    Vision For Integrated Healthcare Integrated Capabilities and Vision for Global Growth Strategic Vision Vision  Leading integrated healthcare services player in Asia Vision for Pacific Integrated  No. 1 in Asia Healthcare Key Enablers  Fortis partners with a large pool of highly reputed medical ta

  6. Slide 6: Fortis Healthcare – Fastest Growing Integrated Healthcare Provider in Asia Pacific

    Fortis Healthcare – Fastest Growing Integrated Healthcare Provider in Asia Pacific Fortis India Fortis International Combined Entity India International India International 8 Hospitals1 66 (Vietnam, Sri Lanka and Singapore) 74 Total Beds1 c.10,600 1,500 c.12,100 Primary Care2 - 580 centers 580 cente

  7. Slide 7: Build Up Of An Integrated Healthcare Platform

    Build Up Of An Integrated Healthcare Platform  Fortis Healthcare India Hospital Operations: Beginning in 2001, Fortis Healthcare India’s Hospital operations, has grown significantly over the last decade to become India’s leading chain of hospitals – 661 Healthcare delivery facilities – 32 Operating

  8. Slide 8: Fortis Healthcare India – India Hospital Business

    Fortis Healthcare India – India Hospital Business  Beginning operations in 2001 with 1 hospital, Fortis has aggressively grown to be one of India’s largest hospital chains  Fortis Healthcare India currently operates secondary and tertiary care hospitals across the country with leadership and clini

  9. Slide 9: India Hospital Business – Deep Pan India Presence

    India Hospital Business – Deep Pan India Presence Total Capacity Operational Beds No. of Hospitals Category wise Owned 4,835 2,894 21 Presence across Managed 2,046 1,047 30 - 17 States - 37 Cities Projects 3,715 - 15 Grand Total 10,596 3,941 66 Region wise North 4,957 2,055 30 South 2,639 712 15 Wes

  10. Slide 10: India Hospital Business – Financial Performance

    India Hospital Business – Financial Performance US$mn Specialty wise Revenue Breakup 350 303 MSH, 8% 300 Gastro, 2% OPD, 19% Operating Revenue Operating EBITDA Onco, 5% Renal, 4% 250 Neuro, 6% Pulmo, 2% Gynae, 2% Other, 16% 200 191 Ortho, 8% Others, 10% 150 Cardiac, 35% 129 103 100 50 43 29 17 Focus

  11. Slide 11: SRL – The Diagnostics Laboratories Business

    SRL – The Diagnostics Laboratories Business  Fortis acquired 71.5%* in SRL in May Category India Overseas Total SRL is the largest player in the organized 2011 diagnostics market Reference Thyrocare 6 2 (1) 8  SRL is a leading diagnostics services Labs 7% company in India present across ~400 Patho

  12. Slide 12: SRL - Financial Performance

    SRL - Financial Performance* Growing through organic and inorganic route Revenue contribution 100 92 Revenue (US$mn) E Pathology, 1% 80 54% CAGR Routine tests, 38% Radiology, 20% 60 40 35 28 16 19 20 Specialised and esoteric tests, 41% 0 2007 2008 2009 2010 2011* Improving profitability Revenue brea

  13. Slide 13: Fortis Healthcare International – International Healthcare Business

    Fortis Healthcare International – International Healthcare Business Fortis Healthcare International (“Fortis International”)  Asia Pacific’s fastest growing multi vertical healthcare delivery system  Acquirer of high quality healthcare assets  Optimal mix of high-growth emerging market assets and

  14. Slide 14: Fortis International – Key Asset Financial Performance

    Fortis International – Key Asset Financial Performance Shareholding % Ownership  FY’11 Financials for underlying assets are on a pro-forma basis for Dental Corporation 58.1% period of 12 months ending Mar’11 Quality Healthcare 100.0% Hoan My4 65.0%  Financials are for operating companies and do no

  15. Slide 15: II. Growth Strategy And Vision

    II. Growth Strategy And Vision 15

  16. Slide 16: Leadership Position In India

    Leadership Position In India  Fortis Healthcare India has grown to become one of the largest healthcare chains in India built on a focused organic and inorganic strategy – Healthcare Delivery – 661 Healthcare delivery facilities – 32 Operating hospitals; 19 satellite and heart command centers and 1

  17. Slide 17: International Platform Of Assets With Dominant Market Positions

    International Platform Of Assets With Dominant Market Positions  Significant growth opportunity in the emerging markets, driven by rising Income, changing demographics and lifestyle and advancement in and proliferation of medical technology  Organic growth opportunity limited by long gestation per

  18. Slide 18: Positioning Fortis Healthcare as an Integrated Healthcare Platform

    Positioning Fortis Healthcare as an Integrated Healthcare Platform  Post consolidation of international assets; Fortis  Consolidation of international assets enabling Healthcare amongst the top healthcare entry into primary care, specialty day care companies in emerging markets, by revenue and den

  19. Slide 19: Diversified Revenue Mix 2011-12E

    Diversified Revenue Mix 2011-12E Geographical Mix Product Mix Dubai Vietnam Primary Care, 1% 3% 15% Hong Kong Day Care 15% Specialty, 32% India 50% Australia & NZ Secondary/ 31% Diagnostics, Tertiary 11% /Quaternary Care, 43% Dental Care: Includes revenues of Dental Corp and dental practice of Quali

  20. Slide 20: Verticals and Geographies Matrix

    Verticals and Geographies Matrix Emerging Developed Middle New Hong Vietnam Sri Lanka Mauritius India East Singapore Zealand Kong Canada Australia Primary Care   Diagnostics    Specialty Day Care Centres       Secondary Care Hospitals   Tertiary Care Hospitals      20 * Fortis Heal

  21. Slide 21: Unique And Compelling Positioning

    Unique And Compelling Positioning Fortis is positioned as the leading integrated healthcare services provider in the region Bangkok Fortis3 Apollo Dusit Parkway2 Raffles Ramsay Healthscope2 Revenue Mar-12E1 (US$mn) ~1,000 631 1,178 ~ 1,100 220 4,081 ~2,200 # of Hospitals 74 54 27 16 1 117 33 # of Be

  22. Slide 22: Potential Synergies

    Potential Synergies Growth Synergies Talent Synergies  Leadership position to unlock superior economies of scale from  Global talent base regional scale and network effects  Enhanced talent pool of clinical and management  Global Brand with an enhanced market positioning as a professionals respe

  23. Slide 23: Strategy For Growth

    Strategy For Growth Extend to new geographies/ service lines Integrated play in  Extend to other emerging markets current  Enter new service lines in current markets geographies Extend platform in  Extend new service lines to current geographies – create the integrated attractive standardized pat

  24. Slide 24: III. Acquisition Of Fortis Healthcare International - Highlights

    III. Acquisition Of Fortis Healthcare International - Highlights 24

  25. Slide 25: Transaction Structure

    Transaction Structure  Fortis Healthcare (India) Limited (FHIL) to acquire 100% ownership of INDIA OVERSEAS Fortis Healthcare International (Fortis International) from RHC Financial Services (Mauritius) Limited  Fortis International owns all the international healthcare assets of the promoters of

  26. Slide 26: Transaction Valuation

    Transaction Valuation  The Board of Directors of Fortis Healthcare (India) Ltd.(FHIL) constituted a sub-committee, comprising of independent directors, named as “Independent Committee for International Consolidation” (“IC Committee”) to recommend the valuation for Fortis Healthcare International Pt

  27. Slide 27: Funding Plan

    Funding Plan Funding Requirement Proposed Funding Plan Total Purchase Consideration US $665m Cash (existing FCCB proceeds) US$ 100m Debt pushdown to Fortis International (1) US$ 390m New Loans (2) US$ 175m Total US $665m Total US $665m (1) Debt currently at RHC Fin Services (M) Ltd to be pushed down

  28. Slide 28: Global Management Team

    Global Management Team* Malvinder Mohan Singh Executive Chairman Shivinder Mohan Singh Executive Vice Chairman Vishal Bali Group CEO Balinder Singh Dhillon Executive Director Lim Cheng Prema Vanessa Ng Daphne Khoo Eng Aik Meng Aditya Vij Cheng General CPO1 CMO2 COO CEO (India) CFO Counsel * Subseque

  29. Slide 29: IV. Fortis Healthcare (India) Limited – Q2 FY ’12 Results Update

    IV. Fortis Healthcare (India) Limited – Q2 FY ’12 Results Update 29

  30. Slide 30: Snapshot – Financial Performance

    Snapshot – Financial Performance (US$mn.)  Q2FY 12 – Consolidated 160 +70%  Operating Revenue US$ 125mn  70% +55% 140  Operating EBITDA* US$ 18mn  74% 140 125 Net Profit/(Loss) US$ (2.6)mn 120 Statutory Q2FY11 Q2FY12 100 90 Occupancy 75% 76% 73 80 ARPOB (Annualized – US$mn) 0.17 0.18 ALOS (Days

  31. Slide 31: Financial Highlights of the quarter

    Financial Highlights of the quarter  Hospital Business – Hospital network revenue at US$ 114mn(+26% q-o-q). This includes revenue from International Patients – US$ 6.8mn(+35% q-o-q) (6% of hospital network revenue) – Newly started hospitals performed well and clocked revenue of ~US$ 7.2mn which inc

  32. Slide 32: Summary – Q2FY12 Consolidated Profit and Loss

    Summary – Q2FY12 Consolidated Profit and Loss US$mn Q2FY12 Q2FY11 Particulars Hospital Diagnostics ** Total business Hospital Parkway Total business Operating Revenue 98.6 25.9 124.5 73 - 73 Direct Costs 24.2 8.1 32.3 19.2 - 19.2 Employee Costs 17.6 5.8 23.4 13.7 - 13.7 Other Costs 42.0 9.1 51.0 30.

  33. Slide 33: Hospital Business: Q2FY12 Base Operations

    Hospital Business: Q2FY12 Base Operations Q2FY12 Q2FY11 Particulars % % Growth (%) (US$mn) (US$mn) Operating Revenue 98.6 100.0% 73.0 100.0% 35.0% Direct Costs 24.2 24.6% 19.2 26.2% 26.4% Employee Costs 17.6 17.8% 13.7 18.8% 28.2% Other Costs 42.0 42.6% 30.0 41.1% 40.0% Operating EBITDA* 14.8 15.0%

  34. Slide 34: Upcoming Greenfield Hospitals in India

    Upcoming Greenfield Hospitals in India Estimated Area & Land Date of No. Location Beds Capex Status Ownership Commencement (US$mn)  Medical equipment is being installed 37,000 sq. ft., B. 1 Kangra 100 Q3 FY12 4.9  Facility will be launched in Lease Q3FY12  27,000 sq..ft., Public  OPD launched; C

  35. Slide 35: Upcoming Greenfield Hospitals in India

    Upcoming Greenfield Hospitals in India Date of Estimated No. Location Beds Area & Land Ownership Commen Capex Status cement (US$mn)  Approval from govt. authorities received; 8 Ludhiana – 2 75 60,000 sq ft. B. Lease Q3FY 13 4.1 Design finalised and building plan under approval Peenya, 9 120 ~70,000

  36. Slide 36: Balance Sheet as at September 30, 2011

    Balance Sheet as at September 30, 2011 Balance Sheet US$ mn Shareholder’s Equity* 677.6 Foreign Currency Convertible Bonds (FCCB’s) 100.0 Debt 343.7 Total Capital Employed 1,121.2 Goodwill 371.4 Net Fixed Assets (including CWIP of US$ 75.9mn) 473.1 Investments - in Associates 1.8 - Deposits (includi

  37. Slide 37: Thank You

    4 Fortis HEALTHCARE | Thank You |

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