34 slides from Dr. Lal Pathlabs's investor presentation, May 2018
Slide 1: Dr. Lal PathLabs Limited Corporate Presentation
Dr. Lal PathLabs Limited Corporate Presentation May 2018
Slide 2: Disclaimer
Disclaimer By attending the meeting / telephonic call where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by Dr. Lal PathLabs Limited (the “Company”) for use in presentat
Slide 3: Table of Contents
3 Table of Contents 1 Company Overview 2 Investment Highlights 3 Q4 & FY18 Highlights & Financial Performance 4 LPL Strategy for future growth 5 Annexures DISCLAIMER: This presentation may contain ‘forward-looking’ statements at places. The Company’s business operations remain subject to undetermine
Slide 4: Company Overview
Company Overview • Our Evolution • Dr. Lal PathLabs at a glance • Experienced Management team
Slide 5: Our Evolution
5 Our Evolution 1949 – 2005 2005 – 2010 2010 – 2018 Foundation Building capabilities for Strong position in North scale up India, building network in other geographies 1949: Founded by Dr. Major 2005: onwards: Investment Investment by TA Associates S. K. Lal by WestBridge Capital Clinical la
Slide 6: Dr. Lal PathLabs at a glance
6 Dr. Lal PathLabs at a glance Test Menu Established consumer healthcare brand in diagnostic services Specialized Routine testing testing Pan-India integrated coverage with 193 clinical labs (including National Reference Lab1 at Delhi and Regional Bio-chemistry Molecular Ref Lab at Kolkata), 2,1
Slide 7: Experienced Management team
7 Experienced Management team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Whole-time Director and Chief Chairman and Managing Director Whole-time Director Executive Officer Dilip Bidani Bharath Uppiliappan Shankha Banerjee Chief Financial Officer Chief Operating Officer Chief Growt
Slide 8: Investment Highlights
Investment Highlights
Slide 9: Investment Highlights
9 Investment Highlights Well-positioned in one of Scalable model integrated Established consumer the fastest-growing through centralized IT healthcare brand in segments of the Indian platform allows for diagnostic services healthcare industry network expansion Attractive operating Robust financial m
Slide 10: Indian Healthcare Services is a large growth opportunity
10 Indian Healthcare Services is a large growth opportunity 1.42 bn India’s expected population in 2026 India, highly underpenetrated market 7.6% GDP growth in FY161 INR 4.2 trillion Total Healthcare Expenditure as % of GDP (2013) FY14 India healthcare expenditure 17.1% ~68% Private expenditure on h
Slide 11: Growth Drivers
11 INR 377 bn Diagnostic Services industry expected to grow to INR 700 bn by FY20 Diagnostic Services Industry Size CAGR: INR 700-750 bn Growth Drivers 14–16% 1 Increase in evidence-based INR 377 bn treatments 2 Demand for lifestyle diseases- related services to grow 2014–15 2019–20P 3 Focus on prev
Slide 12: Diagnostic Services industry remains highly fragmented
12 Diagnostic Services industry remains highly fragmented Highly Fragmented Industry Standalone Centres, 48% Large Pan- India Chains 35-40% Diagnostic Regional Chain, 15% Chains 60- 65% Hospital Based, 37% Largely fragmented and unorganized Source: CRISIL Report titled “Assessment of Diagnostics Ind
Slide 13: Established consumer healthcare brand in Diagnostic Services
13 Established consumer healthcare brand in Diagnostic Services Pillars of a Strong Brand Accreditations Nationwide Network Fast Turnaround Time Accreditations from CAP, Coverage in metros, Tier 1 24x7 access including online NABL and ISO and Tier 2 cities access and home collection Centrall
Slide 14: Hub and Spoke Model Network Expansion
14 Scalable Model integrated through centralized IT platform allows for network expansion Hub and Spoke Model Network Expansion PSC PSC No. of Clinical No. of PSCs No. of PUPs Reference Laboratories Lab 2,153 Clinical Clinical 193 5,668 5,624 Lab Lab 1,759 189 1,559 1,340 PSC PSC PSC PSC 172 5,021 1
Slide 15: Integrated National Network backed by Centralized IT platform
15 Scalable Model integrated through centralized IT platform allows for network expansion Integrated National …backed by Centralized IT platform Network… which fully integrated network Enterprise Resource Payables, receivables, inventory, ledgers etc. Planning (ERP) Scalability and connectivity
Slide 16: Collection network
16 Collection network LPL’s scalable business model provides strategic advantage for expansion and consolidation National Reference Lab & Regional Ref. Lab Clinical Labs (Testing/Collection) Patient Service Centers Pickup Points Home Walk-ins Collection Hospitals Doctors Labs Walk-ins Diverse, lar
Slide 17: Attractive operating metrics
17 Attractive operating metrics No. of patients No. of samples Total Revenue (Mn) (Mn) (INR mn) Higher revenue realization per Consumer brand and network patient on account of: Increase in samples with patient expansion driving patient Growth in walk-in customers volumes growth volumes Hig
Slide 18: Multiple levers in place to drive next phase of growth
18 Multiple levers in place to drive next phase of growth Expand through Expand presence in Focus on hospital- strategic acquisitions existing markets based clinical labs and partnerships Cluster and focused geography approach M&A provides growth kicker Increase existing tie-ups Deepen prese
Slide 19: Strategies to deepen our presence
19 Strategies to deepen our presence South and North India East India West India Focus on Preventive healthcare retail Commitment to quality screening and chronic Online report; network and and reliability of / lifestyle disease data analytics home services management services. collection Bundling o
Slide 20: Robust financial performance
20 Robust financial performance Total Revenue Revenue by Geography (FY18) EBITDA1,PAT and Return on Net Worth INR (Mn) (%) (INR mn / %) EBITDA Margin West India, Others, Before ESOP 27.3% 26.7% 27.0% 26.3% 6.8% 1.2% charge1 South India, 6.7% PAT Margin 14.6% 16.8% 17.0% 16.3% RONW 33.7% 31.4% 26.6%
Slide 21: Robust financial performance (Cont'd)
21 Robust financial performance (Cont’d) Fixed Asset Turnover1 Cash and Cash Equivalents (Times) (INR mn) 3.6x 1,861 2,945 3,882 5,506 3.4x 3.3x 3.2x 4,058 2,836 2,302 1,482 1448 1046 643 379 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Cash and Bank Current Balance Investments Self funded growth on ac
Slide 22: Q4 & FY18 Highlights & Financial Performance
Q4 & FY18 Highlights & Financial Performance
Slide 23: Q4 FY18 Snapshot
Q4 FY18 Snapshot 21.4% Revenues INR 2,668 mn Samples Processed ~8.99 mn 26.3% EBITDA INR 688 mn Patients Tested ~3.85 mn 27.2% PAT INR 402 mn Total Employees ~4316 23
Slide 24: Kolkata Regional Reference Lab
Kolkata Regional Reference Lab Testing operations commenced in Jan 2018 Kolkata Reference Lab started testing of samples in early Jan. The World-class Lab will cater the demand from Northeast as well as Eastern regions of India. It will also cater to neighboring international markets. 24
Slide 25: Key Performance Highlights
Key Performance Highlights Strong volume momentum achieved in Q4 expected to continue; captures growth in patient volumes and tests per patient. Initiatives of test bundling thereby delivering greater value to customers, and focus on specialised tests aiding growth momentum During Q4 FY18: • Recorde
Slide 26: Financial Table
Financial Table Particulars (Rs. mn) Q4 FY18 Q4 FY17 Growth % FY2018 FY2017 Growth % Total Revenue 2,668.4 2,199.2 21.4% 10,569.2 9,123.8 15.8% Total Expenditure 2028.2 1,700.4 7,929.2 6,748.7 EBITDA 640.2 498.8 28.3% 2,640.0 2374.6 11.2% Adj for RSU, and stock 48.1 46.1 142.7 104.9 based comp. & CS
Slide 27: Financial Highlights
Financial Highlights Revenues All figures in Rs. mn 2,668 Q4 showed strong growth in Realisation per patient has 2,199 revenues at 21.4% to Rs. 2,668 improved marginally to Rs. 694 million. Drivers during the quarter owing to price rationalisations were: undertaken during the year in • Expansion
Slide 28: Financial Highlights
Financial Highlights All figures in Rs. mn Normalised EBITDA (after eliminating the impact of RSU and other stock based remuneration charges) 688 Q4 normalised operating EBITDA Q4 Normalised EBITDA margin 545 (after eliminating the impact of was at 25.8% vs 24.8% last RSU, other stock based year
Slide 29: Financial Highlights
Financial Highlights PBT All figures in Rs. mn 620 488 Q4 PBT stood at Rs. 620 million Q4 PAT stood at Rs. 402 million vs. Rs. 488 million in same quarter vs Rs. 316 million in Q4 last year previously Q4 FY17 Q4 FY18 2613 2368 12M PBT rose 10.3% to Rs. 2,613 12M PAT increased 10.4% to millio
Slide 30: LPL Strategy for future growth
LPL Strategy for future growth
Slide 31: LPL Strategy for future growth
31 LPL Strategy for future growth 1 Strengthen Existing Operations Boosting quality & Improving Investment in Grow basic Online initiatives branding and reliability turnaround times radiology practice and data analytics customer standards for testing experience 2 Expansion in Offering Improve breadt
Slide 32: Annexures
Annexures • Shareholding as of 31st March, 2018
Slide 33: Shareholding as of 31st March, 2018
Shareholding as of 31st March, 2018 57.4% 10.1% 13.3% Promoter and Promoter Mutual FII Group Funds 0.2% 19.0% DII Others 33
Slide 34: Contact us
Contact us About Dr. Lal PathLabs Limited (DLPL) For further information please contact: Dr. Lal PathLabs Limited is one of India’s leading consumer healthcare brand in diagnostic services. Dilip Bidani It has an integrated nationwide network, where patients Dr. Lal PathLabs Limited and healthcare p