Healthcare Global Enterprises Ltd. · NSE:HCG
Healthcare Global Enterprises — Q4 FY2024 Earnings Presentation
48 slides from Healthcare Global Enterprises's earnings presentation, May 30, 2024
Slide 1: Exchange filing cover letter
May 29, 2024 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, Subj
Slide 2: Investor Presentation May 2024
HEALTHCARE GLOBAL ENTERPRISES LIMITED I NV ESTOR P R ESENTATI ON May 2024
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 the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful. This p
Slide 4: Largest Pan-India Oncology Hospital Chain
Largest Pan-India Oncology Hospital Chain LARGEST GEOGRAPHICAL REACH… 2 Center of Excellence (CoE) 10 19 ~55% 19 Cancer Care Centers 1 Number of Number of Addressable market3 3 Multi-specialty hospitals states covered5 cities covered5 (population) 6 Day care centers 26 16/18 3.7L+ Jaipur No. of cent
Slide 5: Redefining Cancer Care in India
Redefining Cancer Care in India Largest oncology focused Strong commercial engine driving hospital chain with 1 5 digital and brand transformation a pan India network Focused factory approach and Successful playbook of smart Tumor board, pioneered by Dr. Ajai, 2 6 acquisitions and driving sustained
Slide 6: Industry Opportunity
Industry Opportunity LARGE AND GROWING ONCOLOGY MARKET IN INDIA INDIA IS A SIGNIFICANTLY UNDER-COVERED CANCER INDUSTRY INRbn Population coverage by cancer registries1 CAGR 13-14% CAGR 12% 3% 97% 1% 89% 3% 3% 1% 41% 10% 1 in every 9 people in India to potentially suffer from cancer by 2025 5 Sources:
Slide 7: Low early-stage diagnosis and skewness of CCC towards metros are key problems
Low early-stage diagnosis and skewness of CCC towards metros are key problems 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% 17% 22% 23% 15% 8% Breast Cancer Head and Neck Lung Cancer Brea
Slide 8: Global case studies reinforce the need for single specialty cancer hospitals
Global case studies and research reinforces the need to create single specialty hospitals for cancer care ✓ ✓ ✓ Objective of independently focusing on cancer Announced collaboration with Beth Israel Terminated partnership with Brigham and care rather than operating within a large health Deaconess Me
Slide 9: HCG positioned as 'Destination for Cancer Care'
HCG has positioned itself as ‘Destination for Cancer Care’ with superior clinical and non -clinical expertise… DIAGNOSTICS TREATMENT POST CARE Genomics and Digital PET Preventive Oncology Medical Oncology Radiation Oncology Surgical Molecular Imaging Psychological Preventive Oncology Molecular and H
Slide 10: Underpinned by state-of-the-art technological expertise
…Underpinned by state -of-the-art technological expertise TRACK RECORD OF BEING 1st TO LAUNCH State-of-the-art Equipment in each modality Diagnostics ADVANCED TECHNOLOGY IN INDIA 16 Total PET AI-based 2022 CTs RIS PACS Digital PET CT Digital Digital Tomosynthesis Skyra Tesla Molecular / Ethos / Path
Slide 11: Tumor Board approach
“ T u m o r B o a rd a p p ro a c h ” – P ione e r in s c ie nt if ic d is c ou rse -le d innov a t ion w it h r ig ht c a s e s e le c t ion a nd le a r ning me t hod olog y Spearheaded by Dr. Ajai, who also heads 17+ years of nation wide, Supplemented by multiple IRC1 of 30+ oncologists for clinic
Slide 12: Case Study: Better clinical outcomes vs leading international peers
Case Study:HCG has been able to achieve better clinical outcomes compared to leading int’l cancer focused peers owing to its focused approach TREATMENT ADMINISTERED AND OUTCOMES – HCG VS. MD ANDERSON COVERAGE BY HARVARD OUTCOME: 5-YEAR SURVIVAL GLOBALLY COMPARABLE OUTCOMES N=729 N=2,451 TNBC Non-TNB
Slide 13: Case Study: Leveraging Genomics to drive better outcomes
Case Study : Leveraging “Genomics” to drive better outcomes 1st in Asia to complete 120+ clinical runs (1k+ patients) 1,000+ 1,735+ of Comprehensive Genomic Profiling Patient samples processed Total number of genomic with TSO500 alterations detected in cohort PRECISION Give the right diagnosis at th
Slide 14: HCG has decoded the oncology business model across metros and non-metros
HC G ha s s uc c essfully d ec od ed t he onc ology bus iness mod el r es ult ing in r ob us t p e r for mance a c r oss b ot h me t r os & non -me t r o s 6 NON-METRO CENTERS WITH 15%+ ROCE STRONG PERFORMANCE ACROSS METROS AND NON-METROS Key Parameters Metros Non-metros Surgeries 9k4 19k4 All Non-M
Slide 15: Geographic Presence
Established market leading positions across 16 of 18 cities HCG COMMANDS MARKET LEADERSHIP IN ~90% OF METROS & NON-METROS THE CITIES IT IS PRESENT IN2 # of cancer 12 4 2 centers : 211,2 Geographic Presence MULTIPLE METROS # of cancer centers : 8 2 2 4 Peer 1 # of cancer centers : 14 Peer 2 1 2 <5 CI
Slide 16: Key strategic initiatives undertaken in recent years
Key strategic initiatives undertaken in recent years Phase I Phase II Furthering dominance in Strengthening management team Improved Capital Allocation Optimization initiatives Turnaround existing markets ✓ ✓ Footprint optimisation: New CEO Exit from Kochi; tactical delay in Delhi Meaningful cost sa
Slide 17: Driving higher growth in market leading centers
Driving higher growth in market leading centers Centre of Excellence Upcoming Centre of Excellence Premier non-metro center KR HCC Cuttack Revenue FY18 FY20 FY24 FY18 FY20 FY24 FY18 FY20 FY24 ⚫ Engaged seasoned Regional Head ⚫ Strong Doctor Partner alignment ⚫ Strong Doctor Partner alignment ⚫ Stren
Slide 18: Significant focus on turnaround and profitability of key centers
Significant focus on turnaround and profitability of key centers Nagpur Jaipur Borivali Revenue FY20 FY24 FY20 FY24 FY20 FY24 EBITDA (IND AS) FY20 FY24 FY20 FY24 FY20 FY24 ⚫ Improving mix of clinical strength across modalities ⚫ Engaged COO with proven track record ⚫ New regional head appointed in O
Slide 19: Huge untapped potential across established and emerging centers
Huge untapped potential exists across key established and emerging centers Bengaluru South Mumbai • One of the most attractive micro-markets with the best flywheel of existing market share, • Customized philosophy to crack the hardest micro market in healthcare, anchored around quality of physicians
Slide 20: South Mumbai: Strategy to crack most competitive micro-market
South Mumbai: Strategy in place to crack the most competitive micro-market in Indian healthcare ◼ Anchored around investments in high quality local and global talent, full-time specialist doctors and multi-modal treatment approach ◼ Well setup to breakeven in upcoming quarter and on the path to scal
Slide 21: Kolkata: EBITDA breakeven demonstrated
Kolkata: EBITDA breakeven already demonstrated, paving the way for further profitable ramp up Specific factors that delayed ramp up Turnaround already visible through leading indicators of patient Focused action plan to implement specific initiatives of the Kolkata center flow metrics FY20 FY24 ? Co
Slide 22: Articulating HCG's RoCE journey till date
Articulating HCG’s RoCE journey till date ESTABLISHED CENTERS EMERGING CENTERS HCG(1) Consistent growth in established Market leadership Acquired / established in recent years centers Track record of consistent profitability Substantial investment outlay recently Key metros scaled up 18 CCCs + 6 Day
Slide 23: Breakdown of FY24 ROCE
Breakdown of FY24 ROCE RoCE FOR KEY CENTERS (CONTRIBUTING OVERALL ROCE VIEW TO 75%+ EBITDA MARGINS) 29% 28% 21% 17% 10% 2% Yet to breakeven Established Overall Emerging Bangalore Vintage 1 Vintage 2 Vintage 3 Vintage 4 (10+ years) (~7-8 years) (~5 years) (Nascent) (3)% ◼ Established centers already
Slide 24: Case studies of smart acquisitions
Case studies of smart acquisitions and driving sustained growth post integration Time-tested and highly replicable model of consistent revenue growth and profitability across geographies HCC Cuttack Acquisition 20131 2008 year Situation at ⚫ Primarily ⚫ Outside of ⚫ Single digit ⚫ Primarily ⚫ Single
Slide 25: Potential to grow faster than market over next 5 years
Potential to grow faster than market over the next 5 years Well defined inorganic levers of expansion as a Greenfield expansions to drive natural industry consolidator future growth Complementary adjacencies to Higher patient value capture unlock newer avenues through advanced technology and of grow
Slide 26: Massive potential to drive attractive returns going forward
Massive potential to drive attractive returns going forward Margin Improvement Capital Efficiency ✓ Ongoing measures to improve ✓ Asset light expansion through pay per realization on the back of more use model for equipment and advanced technologies operationalization of day care beds ✓ Ongoing valu
Slide 27: Q4 & FY24 Financial & Operational Highlights
Q4 & FY24 FINANCIAL & SUBASENI LENKA, CANCER WINNER OPERATIONAL HIGHLIGHTS I am eternally thankful to Dr. Panda and other specialists at HCG Panda Cancer Hospital, as the specialists were able to treat my condition the right way, the first time 26 www. h c g o n c o l o g y. c o m
Slide 28: Clinical Highlights & Recognitions
Clinical Highlights & Recognitions ~290+ Robotic Surgeries AACI accreditation at HCG Borivali HCGs Smart App (highest ever) will facilitate International Institutional Launched its E-Pharmacy and tie-ups and better realization Home care modules up by 36% Q-o-Q KR Borivali NeuroSAFE – Performed first
Slide 29: Financial Highlights Q4 FY24
Financial Highlights Q4 FY24 REVENUE R E V E N U E - H C G C e n t e r s (1) REVENUE - Milann Centers +12% +12% +8% 4,946 4,776 158 170 4,422 4,264 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 ADJUSTED EBITDA PROFIT AFTER TAX PROFIT AFTER TAX ADJUSTED EBITDA* MARGIN* (Pre-IND AS) (Post-IND AS) +21% + 1
Slide 30: Financial Highlights FY24
Financial Highlights FY24 REVENUE R E V E N U E - H C G C e n t e r s (1) REVENUE - Milann Centers +13% +13% +2% 19,121 18,447 663 674 16,948 16,284 FY23 FY24 FY23 FY24 FY23 FY24 ADJUSTED EBITDA PROFIT AFTER TAX PROFIT AFTER TAX ADJUSTED EBITDA* MARGIN* (Pre-IND AS) (Post-IND AS) +11% -40 bps +47% +
Slide 31: Breakdown of FY24 EBITDA
Breakdown of FY24 EBITDA EBITDA FOR KEY CENTERS (CONTRIBUTING OVERALL EBITDA VIEW TO 75%+ EBITDA MARGINS) 24% 21% 20% 17% 16% 16% 9% Yet to breakeven Established Overall Emerging Bangalore Vintage 1 Vintage 2 Vintage 3 Vintage 4 (10+ years) (~7-8 years) (~5 years) (Nascent) ◼ Established centers alr
Slide 32: Improved Performance Leading to Profitability
Improved Performance Leading to Profitability 1.7x 4,079 4,200 4,247 4,422 4,607 4,870 4,699 4,946 3,231 3,520 3,581 3,646 Revenue 2,981 (INR mn) Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 2.3x EBITDA (Excl. 941 ESOP) 740 760 773 778 765 864 804 632 636 652 (INR mn
Slide 33: Growth Across HCG Centers
Growth Across HCG Centers Established Centers* Emerging Centers ~1.3x g r o w t h i n l a s t 9 q u a r t e r s ~1.5x g r o w t h i n l a s t 9 q u a r t e r s +11% +15% REVENUE 3,477 3,522 1,216 1,211 1,254 3,173 3,315 3,323 1,129 2,979 3,090 3,065 1,090 2,663 945 1,015 929 826 Q4FY22 Q1FY23 Q2FY23
Slide 34: Strong Operating Metrics with Significant Capacity Headroom
Strong Operating Metrics with Significant Capacity Headroom Key Driver Metric Indicator % Revenue Q4’23 Q4’24 F Y2 3 F Y2 4 13% 362 410 Lead indicator of Volume Growth; key 19% OPD Footfall (‘000) operating metric tracked by HCG; has 17%* 88 104 correlation to OPD Footfalls 10% 133 146 Key indicator
Slide 35: HCG – Q4FY24 Operational Metrics
HCG – Q4FY24 Operational Metrics # ESTABLISHED EMERGING CENTERS ESTABLISHED CENTERS TOTAL AOR (%) CENTERS AOR (%) A O R ^* ( % ) ROCE (%) 63.9% 63.8% 64.0% 20.6% 65.1% in Q4FY23 64.8% in Q4FY23 65.7% in Q4FY23 20.9% in FY23 120 bps 100 bps 170 bps 30 bps Operational beds increased from 1,833 in Q4 F
Slide 36: HCG – FY24 Operational Metrics
HCG – FY24 Operational Metrics # ESTABLISHED EMERGING CENTERS TOTAL AOR (%) CENTERS AOR (%) A O R ^* ( % ) 64.2% 64.3% 64.1% 65.4% in FY23 64.3% in FY23 68.5% in FY23 120 bps Flat 440 bps Operational beds increased from 1,833 in FY23 to 1,923 in FY24. On a like to like basis, Total AOR stands at 67.
Slide 37: HCG – Cluster Wise Revenue Break Up
HCG – Cluster Wise Revenue Break Up C LU ST E R Q4FY24 Q4FY23 Y-o-Y FY24 FY23 Y-o-Y K A R N ATA K A * 1,514 1,499 1% 6,014 5,693 6% G U J A R AT 1,258 1,085 16% 4,784 4,164 15% MAHARASHTRA 771 628 23% 2,871 2,409 19% EAST INDIA 551 479 15% 2,106 1,688 25% ANDHRA PRADESH 345 290 19% 1,378 1,205 14% T
Slide 38: Milann – Implementing Strategic Initiatives
Milann – Implementing Strategic Initiatives BENGALURU (5 Centers) Growth Growth Particulars Q4FY24 Q4FY23 FY24 FY23 Y-o-Y Y-o-Y M S Ramaiah Nagar New 958 1,286 -25.5% 4,446 5,265 -15.6% Registrations Shivananda Indiranagar IVF Cycles 375 461 -18.7% 1,635 1,936 15.5% Whitefield Sarjapur JP Nagar Reve
Slide 39: Capital Expenditure & Net Debt
Capital Expenditure & Net Debt CAPITAL EXPENDITURE (Rs. Mn.) NET DEBT (Rs. Mn.) NET DEBT 31 st Mar 2024 31 st Mar 2023 HCG CENTERS FY24 FY23 Bank Debt ( 1) 6,288 3,773 Established Vendor Finance ( 2) 303 223 1,639 1,113 Centers Other Debt 38 8 Emerging Centers 236 144 Less: Cash & Cash Equivalents (
Slide 40: Q4 & FY24 Consolidated Profit & Loss Account
Q4 & FY24 Consolidated Profit & Loss Account Profit and Loss (in Rs. Mn.) Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y Revenues from Operations 4,932.5 4,409.8 4,689.5 19,078.7 16,914.1 Income from Govt. Grant 13.8 7.3 9.2 42.5 30.3 Total Revenue from Operations 4,946.3 4,417.1 12% 4,698.7 5%
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet B alan ce Sh eet - Eq u ity & Liab ili t ie s (in Rs. M n .) M ar -24 M ar -23 B alan ce Sh eet - Assets (Rs. M n .) M ar -24 M ar -23 E q u ity Sh are Cap ital 1,392. 9 1,391 Non -Cu r r en t Assets Oth er E q u ity 6,864. 9 7,214 Prop erty, Plan t An d E q u ip men t 10,
Slide 42: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement (in Rs. Mn) FY24 FY23 Net Profit Before Tax 677 449 Adjustments For: Non - Cash Items / Other Investment Or Financial Items 2,914 2,753 Operating Profit Before Working Capital Changes 3,591 3,201 Changes In Working Capital -272 -459 Cash Generated
Slide 43: Historical Financial Highlights
HISTORICAL FINANCIAL SHANKAR, CANCER WINNER HIGHLIGHTS The days I was at HCG, I felt like I was sleeping at home. They never stop caring for you. The doctors and nurses are always finding ways to make this difficult journey as comfortable as possible 42 www. h c g o n c o l o g y. c o m
Slide 44: Historical Profit & Loss Account
Historical Profit & Loss Account Profit and Loss (in Rs. Mn.) FY24 FY23 FY22 FY21 FY20 CAGR Revenues from Operations 19,079 16,914 13,948 10,092 10,923 Income from Govt. Grant 43 30 30 43 33 Total Revenue from Operations 19,121 16,944 13,978 10,134 10,956 15% Costs of Goods Sold 4,754 4,241 3,549 3,
Slide 45: Historical Balance Sheet
Historical Balance Sheet Balance Sheet - Equity & Liabilities (in Rs. Mn.) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Equity Share Capital 1,393 1,391 1,390 1,254 887 Other Equity 6,865 7,214 7,313 5,718 2,926 Equity Attributable To Equity Holders Of The Company 8,258 8,605 8,703 6,972 3,813 Non-Controlling
Slide 46: Historical Balance Sheet
Historical Balance Sheet Balance Sheet - Assets (in Rs. Mn.) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Non-Current Assets Property, Plant And Equipment 10,147 9,718 9,315 8,531 9,271 Capital Work in Progress 832 182 217 300 461 Rights-of-use Assets 4,907 3,813 4,045 4,114 5,776 Goodwill 2,229 1,812 1,813 9
Slide 47: Historical Cash Flow Statement
Historical Cash Flow Statement Cash Flow Statement (in Rs. Mn) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Net Profit Before Tax 677 449 878 -2,287 -1,193 Adjustments For: Non - Cash Items / Other Investment Or Financial 2,914 2,753 1,666 3,619 2,988 Items Operating Profit Before Working Capital Changes 3,59
Slide 48: Thank You
THANK YOU Company: HealthCare Global Enterprises Limited Investor Relation Advisors: Strategic Growth Advisors CIN: L15200KA1998PLC023489 CIN: U74140MH2010PTC204285 For updates and specific queries, please visit Mr. Sagar Shroff / Mr. Ayush Haria www.hcgoncology.com sagar.shroff@sgapl.net / ayush.ha
HealthCare Global Enterprises — Q4 FY2024 Earnings Presentation on 6ix