Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (January 2021)
35 slides from Apollo Hospitals Enterprise's investor presentation, January 2021
Slide 1: Corporate Presentation January 2021
CORPORATE PRESENTATION January 2021
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is provided by Apollo Hospitals Enterprise Limited (the “Company”) to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor an
Slide 3: Key Highlights
KEY HIGHLIGHTS Leading private sector Attractive industry 01 healthcare services provider 02 opportunity Superior operating & 03 Excellence in practice 04 financial track record Strong management Strategy for future 05 team 06 growth 3
Slide 4: Leading Private Sector Healthcare Services Provider
LEADING PRIVATE SECTOR 01 HEALTHCARE SERVICES PROVIDER 4
Slide 5: Business at a Glance
BUSINESS AT A GLANCE Data as of Mar 31, 2020 except for Apollo 24X7 that is as of Nov 30, 2020 1 Healthcare 53% 71 10,261 67% 3.86 days INR 37,397 / 470,000+ 4,300,000+ Services of revenue Hospitals2 Beds Occupancy ALOS4 day In-patients Out-patients rates3 ARPOB4 1 Pharmacy 41% platform Of revenue 3
Slide 6: Largest Private Healthcare Services Provider in India
LARGEST PRIVATE HEALTHCARE SERVICES PROVIDER IN INDIA Leading player in India in terms of number of hospitals 711 27 26 21 17 13 13 11 11 4 Fortis Healthcare Healthcare Global Narayana Max Healthcare Aster DM Care Hospitals Columbia Asia Shalby Ltd Sterling Hospitals Ltd Enterprises Ltd Hrudalaya Lt
Slide 7: Pan India Presence
PAN INDIA PRESENCE Steadily increasing footprint supporting meaningful upside in future 71 hospitals1 present across India Healthy mix by category Owned hospitals Day care centers / CRADLE Managed hospitals 7% 9% 10% 5% 6% Delhi: 5 Amritsar: 1 30% Noida: 1 711 63% 10,261 8,930 86% 84% Kanpur: 1 Bila
Slide 8: Largest Pharmacy Platform in India
LARGEST PHARMACY PLATFORM IN INDIA Extensive Pharmacy network also supports the growth of Apollo 24X7 – Digital pharmacy platform Largest pan-India pharmacy network Highly differentiated business model driving growth Jammu & Kashmir: 1 Chandigarh: 6 Himachal Pradesh: 1 Uttarakhand: 4 Extensive Asset
Slide 9: Attractive Industry Opportunity
ATTRACTIVE 02 INDUSTRY OPPORTUNITY 9
Slide 10: Hugely Under-Penetrated Market with Attractive Dynamics
HUGELY UNDER-PENETRATED MARKET WITH ATTRACTIVE DYNAMICS Private sector players are well-positioned to leverage opportunity given low contribution of government spending Growing Indian Healthcare Delivery industry Public healthcare expenditure is low, with private sector accounting for bulk The healt
Slide 11: Large Market with Strong Growth Prospects
LARGE MARKET WITH STRONG GROWTH PROSPECTS India lags behind other developed and emerging economies in Deaths due to disease is higher while healthcare infrastructure is healthcare infrastructure poor Beds per 10,000 people India’s share as percentage to world 81 43 Global median: 29 29 26 25 21 21 1
Slide 12: Rapid Demand Growth Driven by Demographic Shifts
RAPID DEMAND GROWTH DRIVEN BY DEMOGRAPHIC SHIFTS, CHANGING CONSUMPTION PATTERNS, INCREASING AFFORDABILITY AND FAVORABLE REGULATORY ENVIRONMENT Non-communicable disease accounts for most number of deaths Population in 60+ age group to grow faster Causes of death in India 0-14 years 14-29 years 30-44
Slide 13: India Offers Significant Opportunity for Growth of Medical Tourism
INDIA OFFERS SIGNIFICANT OPPORTUNITY FOR GROWTH OF MEDICAL TOURISM India is fast emerging as a major medical tourist destination Medical tourists (in mn) 0.69 Medical tourism market in India to rise at a CAGR of 65- 70% between fiscals 2021 and 2025 0.23 0.16 2010 2015 1 2019 Treatments mostly sough
Slide 14: Opportunity from Increasing Digital Adoption
OPPORTUNITY FROM INCREASING DIGITAL ADOPTION AIDED BY FAVORABLE CONSUMER BEHAVIOR AND STRONG IMPETUS PROVIDED BY COVID Data driven revolution in the country has led to a generation of digitally inclined consumer… Robust internet subscribers growth… …and rapid tech adoption Internet users (in mm) 974
Slide 15: Excellence in Practice
03 EXCELLENCE IN PRACTICE 15
Slide 16: Quality Healthcare Services Delivery on the Back of World-Class Clinical Excellence
QUALITY HEALTHCARE SERVICES DELIVERY ON THE BACK OF WORLD-CLASS CLINICAL EXCELLENCE Leaders in clinical quality & excellence – 8 hospitals received JCI accreditations & 30 hospitals NABH accreditations Significant contribution (60%) from high-end tertiary care practice1 35 Units 36 Units Cardiol
Slide 17: Pioneers in Technology Adoption
PIONEERS IN TECHNOLOGY ADOPTION One of the first to adopt robotics precision in minimally invasive surgery 2014 2019 2020 Eleven robotic surgical Proton Beam Therapy, an 3.0 Magnetic resonance One Prism 640 slice dynamic systems that enables robotic advanced form of radiotherapy imaging (“MRI”) syst
Slide 18: Superior Operating & Financial Track Record
SUPERIOR OPERATING & 04 FINANCIAL TRACK RECORD 18
Slide 19: Key Operating Metrics
KEY OPERATING METRICS In-patient admission (‘000) Bed Occupancy Rate % ALOS Operating 4.0 4.0 3.9 3.9 4.3 Steady growth of in- 7,111 7,246 7,491 7,450 7,364 Occupancy rates remain (days) beds 451 478 patient volumes in line high despite bed 428 66% 68% 67% 68% with addition of beds additions Reduced
Slide 20: Healthcare Financial Metrics, Pharmacy Financial Metrics
HEALTHCARE FINANCIAL METRICS PHARMACY FINANCIAL METRICS Healthcare Revenue (INR mm) (consolidated) Pharmacy Platform Revenue (INR mm) CAGR: 13% CAGR: 21% 57,297 48,206 51,426 45,157 38,860 32,689 28,394 26,310 22,295 20,272 Mar-18 Mar-19 Mar-20 Sep-19 Sep-20 Mar-18 Mar-19 Mar-20 Sep-19 Sep-20 Health
Slide 21: Apollo Health and Lifestyle – Retail Healthcare
APOLLO HEALTH AND LIFESTYLE – RETAIL HEALTHCARE Revenue FY20 of INR 6,964mm – Primary Care (33%), Diagnostics (11%) & Specialty Care (57%) Multi specialty clinics that extend Apollo’s expertise to Dialysis services, PPP centres in AP, Assam & Bihar the neighborhood 42 Centers 148 Clinics B
Slide 22: AHEL Consolidated Financials – Continuous Growth with Robust Margins
AHEL CONSOLIDATED FINANCIALS – CONTINUOUS GROWTH WITH ROBUST MARGINS Consolidated Revenue (INR mm) Consolidated EBITDA (INR mm) CAGR: 17% Margin 9.6% 11.1% 11.5% 11.7% 3.9% 1,12,468 CAGR: 27% 12,880 96,174 82,435 10,637 7,932 54,126 49,322 6,341 1,907 Mar-18 Mar-19 Mar-20 Sep-19 Sep-20 Mar-18 Mar-19
Slide 23: Strong Management Team
05 STRONG MANAGEMENT TEAM 23
Slide 24: Apollo Has Always Been at the Fore-Front of Development of India's Healthcare Sector
APOLLO HAS ALWAYS BEEN AT THE FORE-FRONT OF DEVELOPMENT OF INDIA'S HEALTHCARE SECTOR Apollo Impact Improved overall availability of private health care services in India First in India to obtain international JCI accreditation Better access to care in semi-urban and rural areas Enhanced Improv
Slide 25: Executive Board
EXECUTIVE BOARD Dr. Prathap C. Reddy Suneeta Reddy Executive Chairman, Founder Managing Director • Conferred the Padma Vibhushan in 2010 • On the Board since the year 2000 • Conferred the Padma Bhushan in 1991 • Spent 36 years with Apollo Hospitals Dr. Preetha Reddy Sangita Reddy Executive Vice Chai
Slide 26: Independent Directors
INDEPENDENT DIRECTORS Vinayak Chatterjee Bhaskara Mandavilli Nageswara Rao Independent Director Independent Director • On the Board since 2014 • On the Board since Feb 2019 Dr. Rajgopal Thirumalai Velagapudi Kavitha Dutt Independent Director Independent Director • On the Board since May 2017 • On th
Slide 27: Strategy for Future Growth
STRATEGY FOR FUTURE 06 GROWTH 27
Slide 28: Strategy for Future Growth (1/2)
STRATEGY FOR FUTURE GROWTH (1/2) Strategy Optimise Asset Utilisation in facilities & locations 31 5,966 Focus on Centers of Excellence with one or two anchor specialties in each Hospitals1 Capacity market Mature Beds Hospitals Extend and expand oncology presence both through specialization and
Slide 29: Strategy for Future Growth (2/2)
STRATEGY FOR FUTURE GROWTH (2/2) Strategy Focus on urban markets; expand in clusters Owned clinic models in metros, franchisee clinics in Tier II towns Apollo Health 929 27 & Lifestyle Primary care Specialty (AHLL) centers care centers Derive economies of scale that arise from the largest phar
Slide 30: Apollo 24x7 – India's Largest Omni-Channel Healthcare Platform
APOLLO 24X7 – INDIA’S LARGEST OMNI-CHANNEL HEALTHCARE PLATFORM LEVERAGING PHYSICAL NETWORK Distinctive digital ecosystem… … coupled with adequate network and capabilities Physical network & capabilities 1 2 3 Doctors across 3mm+ Annual 5mm+ Diagnostic centers Hospitals & clinics chronic patients Reg
Slide 31: Future Growth Strategy – Transforming Through Technology and Clinical Excellence
FUTURE GROWTH STRATEGY – TRANSFORMING THROUGH TECHNOLOGY AND CLINICAL EXCELLENCE Integrated digital strategy leveraging existing network, capabilities and market leadership Focus on investments in advanced technology and innovation – “(re) Invent the health system of the future” Asset Light & Bolt o
Slide 32: Update on Impact of COVID-19
UPDATE ON IMPACT OF COVID-19 Enhancing protocol driven 31,500+ 14,600+ 8,000+ testing capabilities Inpatients Home care Stay I Increasing accessibility Ensuring Isolation stays at medically supervised accommodations Providing support to Driving Information & vulnerable patients Awareness
Slide 33: Appendix
07 APPENDIX 33
Slide 34: Reorganization Mechanics of Pharmacy Platform Business
REORGANIZATION MECHANICS OF PHARMACY PLATFORM BUSINESS Focus on leveraging full potential of Standalone Pharmacy business as an independent business Focus on same-store growth, prescription fill-rates and increase in Distributor External Investors Private Label business share (Back-end) Exclusive su
Slide 35: Thank You
In summary we have over the last 33 years focused consistently on putting the patient at the core of all that we do in the pursuit of clinical excellence and in creating sustainable value for our stakeholders. We ensure strict adherence to business ethics and our governance standards stand exemplar
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