Max Healthcare Institute Ltd · NSE:MAXHEALTH
Max Healthcare Institute — Q4 FY2020 Earnings Presentation
33 slides from Max Healthcare Institute's earnings presentation, Jul 3, 2020
Slide 1: Q4 & FY20 – Earnings update: July 3, 2020
Q4 & FY20 – Earnings update : July 3, 2020
Slide 2: Disclaimer
Disclaimer This presentation contains certain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Max Healthcare Institute Limited’s (“MHIL”) future business developments and economic per
Slide 3: Executive Summary
Executive Summary • Network of 15 healthcare facilities with 2,500+ bed capacity focused on delivering high end tertiary and quaternary care, supported by reputed clinicians, highly experienced management team and state-of-the-art infrastructure • FY20 – a year of turnaround – significant improvemen
Slide 4: Content
Content Key Financial Highlights 5 Key Operational Highlights 9 Covid-19: Impact and Response 16 Scheme Update 19 About the company 22 4
Slide 5: Key Financial Highlights
0, MAX ofa wee HEALTHCARE Key Financial Highlights
Slide 6: FY20 – Key Financial Highlights
FY20 – Key Financial Highlights Gross Revenue (INR Cr) EBITDA (INR Cr) 3,259 470 47 26 10% 12% 87% 98% 2,921 3,212 238 444 FY19 FY20(2) FY19 FY20(2) Actual Revenue Normalization impact(1) Actual EBITDA Normalization impact(1) Margin(3) (%) FY19 : 8.9% | FY20 : 15.0% | FY20 (norm.) : 15.7% EBITDA per
Slide 7: Q4 FY20 – Key Financial Highlights
Q4 FY20 – Key Financial Highlights Gross Revenue (INR Cr) EBITDA (INR Cr) 854 151 47 26 12% 81% 763 6% 84 49% 807 125 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20(2) Actual Revenue (INR Cr) Normalization impact(1) Actual EBITDA (INR Cr) Normalization impact(1) Margin(3) (%) Q4 FY19 : 11.9% | Q4 FY20 : 16.8% | Q4
Slide 8: FY20 – Significant expansion in EBITDA margin post transaction in June 2019
FY20 – Significant expansion in EBITDA margin post transaction in June 2019 19.2% EBITDA expansion driven by: 2.4% • Robust performance improvement program – ~INR 220 Cr worth of initiatives implemented with ~INR 140 Cr 11.9% 11.6% 15.4% 16.2% 16.8% flowing in EBITDA in FY20 • Increased high-end ter
Slide 9: Key Operational Highlights
Key Operational Highlights 9
Slide 10: Improving Operational Metrics (1/2)
Improving Operational Metrics (1/2) ARPOB(1) (INR/OBD) (‘000) Avg. Inpatient Occupancy (%) +12.7% +10.8% -470 bps -40 bps 53 76.0 51 73.8 73.4 47 46 71.3 Q4FY19 Q4FY20 FY19 FY20 Q4FY19 Q4FY20 FY19 FY20 ALOS(2) (in days) • ARPOB grew by 10.8% over FY19 while maintaining occupancy, -4.3% primarily dri
Slide 11: Improving Operational Metrics (2/2)
Improving Operational Metrics (2/2) Inpatient procedures ('000) Day care procedures ('000) +3.5% +15.7% 188 194 52 45 -0.3% +8.6% 46 46 11 12 Q4FY19 Q4FY20 FY19 FY20 Q4FY19 Q4FY20 FY19 FY20 Outpatient consults (‘000) • In FY20, IP procedures grew by 3.5% and daycare procedures grew by 15.7% over FY1
Slide 12: FY20 - Clinical update (1/2)
FY20 - Clinical update (1/2) Research : • On-going partnerships with various institutes including Imperial College London and NIHR (National Institute of Health Research, UK) – over 15,000 research participants • 80 on-going clinical research projects • Approx. 300 high index journal research public
Slide 13: FY20 - Clinical update (2/2)
FY20 - Clinical update (2/2) Awards : • Max Saket FICCI Healthcare Excellence Award - 2019 • Max Saket Awarded for Excellence in Nursing (AHPI award) • Max Vaishali – AHPI Quality beyond Accreditation Award • Dr. Pradeep Chowbey (MAMBS) - Limca Book of Records for performing most number of laparosco
Slide 14: MaxLab: Non-captive Pathology SBU
MaxLab: Non-captive Pathology SBU 3rd largest player in NCR 100+ Partner-run collection centres Gross Revenues (INR Lacs) 4,088 5 +100% Company owned collection centres 2,432 1,309 120+ 511 Phlebotomist At Site (PAS) FY17 FY18 FY19 FY20 130+ Pick-up points (PUPs) • Consistent revenue growth driven b
Slide 15: Max@Home: Home Healthcare SBU
Max@Home: Home Healthcare SBU Largest provider in NCR 12 Primary service lines Gross Revenues (INR Lacs) 7,683 +100% 6,263 24 X 7 In-house customer support 2,755 963 FY17 FY18 FY19 FY20 1,500+ Transactions/Visits/Shifts daily • Strong foundation – 100% services with care plan, tech platform & frontl
Slide 16: Covid-19: Impact and Response
Covid-19: Impact and Response 16
Slide 17: Covid-19: Significant initial impact followed by sharp recovery
Covid-19: Significant initial impact from Covid-19 followed by sharp recovery • Occupancy rate dropped sharply towards Occupancy (%) the end of March to 30-35% and continued to remain subdued during 78 77 73 74 73 73 76 77 72 72 74 April-May 63 58* 44 • Overall impact of INR 47 Cr on revenues 32 and
Slide 18: Covid-19: Response & Contributions
Covid-19: Response & Contributions Our response : Key contributions : • First private hospital to offer a complete facility in Delhi • Largest number of Covid-19 beds offered in Delhi NCR for Covid-19 care amongst the private sector: ~650 beds • Set up medical processes in conjunction with • Served
Slide 19: Scheme Update
0, MAX ofa wee HEALTHCARE Scheme Update
Slide 20: Scheme Update
Scheme Update • National Company Law Tribunal (NCLT) approved the Composite Scheme of Amalgamation and Arrangement (Scheme) involving the demerger of healthcare business of Radiant Life Care Pvt. Ltd. (Radiant) into Max Healthcare Institute Ltd. (MHIL) and amalgamation of residual Max India Ltd. (MI
Slide 21: Combined Entity – Structure
Combined Entity – Structure KKR Abhay Soi Max Public & Promoters Others 47.0% 52.0% 23.3% 12.0% 7.0% 17.7% MHIL • KKR to acquire 4.99% stake of MHIL from Max Promoters • Going forward, Radiant promoter Abhay Soi and KKR to be the promoters of MHIL, while current Max promoters will be reclassifie
Slide 22: About the Company
0, MAX ofa wee HEALTHCARE About the Company
Slide 23: Snapshot
Snapshot 15 2,508 75%+ Capacity Metro Centric Facilities Beds Beds 700+ 1.9 million 73% Senior OPD Avg. Inpatient Clinicians Consultations Occupancy Note: As on March 31, 2020 23
Slide 24: Overview
Overview • Leading tertiary and quaternary care hospital chain in North India with ~2,500 beds across the network • 10 hospitals + 5 day care centres offering end-to-end care • Highly experienced clinical and management team • Leveraging state-of-the-art technology to achieve clinical excellence • D
Slide 25: State-of-the-art Infrastructure
State-of-the-art Infrastructure Robotics TrueBeam Stx LINAC System Advanced robotics provides high precision Provides a variety of treatment techniques and enables minimum invasive surgery across such as HyperArc and RapidArc to address a multiple specialties such as Oncology, broad range of cancer
Slide 26: Centres of Excellence for High End Quaternary Care
Centres of Excellence for High End Quaternary Care Oncology(1) 20.4% • Share of tertiary and quaternary Others 31.0% specialties improved by 180 bps from 67.9% in FY19 to 69.7% in FY20 • Among the focus specialties oncology 14.2% Cardiac continues to be the fastest growing Sciences despite the large
Slide 27: Experienced Management Team
Experienced Management Team Mr. Abhay Soi Mr. Anas Wajid Chairman and Managing Director Senior Director Sales and Marketing He serves on the board of various group companies of More than 17 years of experience in diverse fields such as Radiant Life Care Private Limited and is experienced in advertis
Slide 28: Annexure
0, MAX ofa wee HEALTHCARE Annexure
Slide 29: Q4 & FY20 - Abridged P&L
Q4 & FY20 - Abridged P&L Particulars (INR Cr) Q4 FY20 Q3 FY20 Q4 FY19(1) Q-o-Q (%) Y-o-Y (%) FY20 FY19(1) Y-o-Y (%) Revenue (Gross) 807 806 763 0.1% 6% 3,212 2,921 10% Revenue (Net) 743 749 702 -0.7% 6% 2,959 2,671 11% Direct Costs 310 307 291 1% 6% 1,223 1,122 9% Contribution 433 442 410 -2% 6% 1,7
Slide 30: Balance Sheet Snapshot
Balance Sheet Snapshot As on As on Particulars (INR Cr) March 31, 2019 March 31, 2020(2) Net worth(1) 840.7 877.1 Gross debt 1,266.4 1,295.3 Net debt 1,246.7 1,004.5 Shareholder loan (from Radiant) - 450.9 Gross fixed assets 3,429.7 3,682.6 Net fixed assets 2,653.0 2,760.4 Net working capital (565.5
Slide 31: FY20 – Impact on P&L and Balance sheet
FY20 – Impact on P&L and Balance sheet Max Healthcare Network (IND AS 116 impact on financial statement) Profit & Loss (INR Cr) Balance Sheet (INR Cr) Other Income 1.5 Property, plant and equipment 0.7 Other expenses (Lease rent) 33.4 Right of use Asset as on 141.4 EBITDA 34.9 Mar 31, 2020
Slide 32: Network Structure
Network Structure Max Pitampura Max Shalimar Bagh Balaji Trust Max Dehradun (Max Patparganj) Medical Service Agreement with Trust Max Panchsheel Immigration centre MHIL Max Saket (West) Devki Devi Trust SBUs (MaxLab, (Max Saket (East), Max@Home) Onco day care centre) 100.0% 100.0% 77.95% 57.20% HBPL
Slide 33: About Us
About Us Max Healthcare Institute Limited (MHIL) is India’s leading provider of healthcare services. It is committed to the highest standards of medical and service For further information, excellence, patient care, scientific and medical education. please contact: For more information, visit MHIL h
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