Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Q1 FY2020 Earnings Presentation
30 slides from Apollo Hospitals Enterprise's earnings presentation, Aug 23, 2019
Slide 1: Q1 FY 2020 Earnings Update
Q1 FY 2020 Earnings Update 8/23/2019 www.apollohospitals.com 1
Slide 2: Safe Harbour
SAFE HARBOUR • No representation or warranty, express or implied, is made as to, and no additional information. These are not to be construed as being provided reliance should be placed on, the fairness, accuracy, completeness or under any legal or regulatory requirements. The accuracy of these numb
Slide 3: Contents
Contents OPERATIONAL UPDATE ON STANDALONE CONSOLIDATED OPERATIONAL AHLL, PERFORMANCE HIGHLIGHTS FINANCIAL FINANCIAL PERFORMANCE GLENEAGLES – STANDALONE PERFORMANCE PERFORMANCE – HOSPITALS KOLKATA & PHARMACY MUNICH 3 8/23/2019 www.apollohospitals.com 3
Slide 4: Highlights
HIGHLIGHTS 4 8/23/2019 www.apollohospitals.com 4
Slide 5: Highlights of Financial Performance
Highlights 1 of 2 Q1 FY20 Consolidated Revenues of ` 25,719 mio (up 16% yoy) Q1 FY20 Consolidated EBITDA (Pre Ind AS 116) of ` 2,945 mio (up 27% yoy) Financial New Hospitals (excluding Proton) reported an EBITDA of ` 213 mio in Q1FY20 as compared to an EBITDA ` 108 mio in Q1FY19. Performance
Slide 6: Highlights of Capacity
Highlights 2 of 2 70 hospitals with total bed capacity of 10,167 beds as on June 30, 2019 44 owned hospitals including JVs/ Subsidiaries and Associates with 8,683 beds 11 Day care/ short surgical stay centres with 267 beds and 10 Cradles with 283 beds Capacity 5 Managed hospitals with 934 be
Slide 7: Ind AS 116 Impact Analysis
IND AS 116 IMPACT ANALYSIS 8/23/2019 www.apollohospitals.com 7
Slide 8: Overview on new lease accounting standard Ind AS 116
Overview on new lease accounting standard IND AS 116 • New lease standard is effective 1st April 2019. • Accounting shifts from operating lease (off balance sheet) to finance lease model (on balance sheet) • PV of future rentals are recognised as “Right of Use” (“RoU”) asset & its corresponding “Lea
Slide 9: Hospitals & Pharmacies – Typical lease rental structures
Hospitals & Pharmacies – Typical lease rental structures HOSPITALS PHARMACIES Particulars Details Particulars Details Tenure 25-30 years, primary lease period, with Tenure 9-12 years, mutually agreeable extension. extension for another term. Lock-in-period 5-12 years for AHEL; Lock-in-period No lock
Slide 10: Impact on P&L over lease period
Impact on P&L over lease period HOSPITALS PHARMACIES +30% +3% +35% +57% +7% +77% -26% -23% -60% 0-5 6-10 11-15 16-20 21-25 26-30 Lease period (in years) 0-3 4-6 7-9 Lease period (in years) Depreciation Interest Depreciation Interest Rental Payment Rental Payment 8/23/2019 www.apollohospitals.com 10
Slide 11: Impact on P&L and Balance Sheet – Q1 FY20
Impact on P&L and Balance Sheet – Q1 FY20 (` mio) AHEL Standalone (post IND AS 116) AHEL Consolidated (post IND AS 116) Balance sheet Profit & Loss Balance sheet Profit & Loss Right of use Revenue - Right of use Revenue - Asset Asset Other expenses Other expenses as of Jun 30, 11,990 as of Jun 30, 1
Slide 12: Standalone Financial Performance
STANDALONE FINANCIAL PERFORMANCE 12 8/23/2019 www.apollohospitals.com 12
Slide 13: Standalone Financial Performance – Total
Standalone Financial Performance – Total (` mio) 1 of 3 Q1 FY 19 Q1 FY 20 yoy (%) Revenue 19,104 22,292 16.7% Key Highlights Operative Expenses 10,092 11,631 15.2% Employee Expenses 2,959 3,528 19.3% Q1FY20 Revenues of ` 22,292 mio, Administrative & Other Expenses 3,787 3,875 2.3% 16.7% yoy growth T
Slide 14: Standalone Financial Performance – Mature & New Breakup
Standalone Financial Performance – Mature & New Breakup (` mio) 2 of 3 Healthcare Healthcare Key Highlights Services New Services SAP Standalone (Mature) Hospitals Proton (Total) Hospitals 22 10 32 Health Care Services revenue growth at 15.1% from ` 10,183 mio in Q1FY19 to Operating beds 3,348 1,449
Slide 15: Standalone Financial Performance – Segment Reporting
Standalone Financial Performance – Segment Reporting (` mio) 3 of 3 Q1 FY 19 Q1 FY 20 yoy (%) Revenues from each segment Key Highlights Healthcare Services* 10,186 11,726 15.1% Stand-alone Pharmacy 8,921 10,568 18.5% Q1FY20 Healthcare services Revenues at ` 11,726 mio, growth Total 19,106 22,294 16.
Slide 16: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 16 8/23/2019 www.apollohospitals.com 16
Slide 17: Consolidated Financial Performance - Total
Consolidated Financial Performance - Total (` mio) 1 of 2 Q1 FY 19 Q1 FY 20 yoy (%) Key Highlights Total Revenues 22,105 25,719 16.4% Revenue growth of 16.4% from EBITDA (Pre Ind AS 116) 2,324 2,945 26.7% ` 22,105 mio in Q1FY19 to ` 25,719 margin (%) 10.5% 11.4% 93 bps mio in Q1FY20 EBITDA (Post Ind
Slide 18: Consolidated Financial Performance – Mature & New Breakup – Total
Consolidated Financial Performance – Mature & New Breakup – Total (` mio) 2 of 2 Healthcare Healthcare Healthcare Serv Serv Group Proton Serv SAP AHLL Consol Key Highlights Group Group (New & (Mature) (Total) AHLL – Cradle & Clinics reported an Others) EBITDA loss of ` 47 mio as compared to Hospital
Slide 19: Operational Performance Hospitals
OPERATIONAL PERFORMANCE HOSPITALS 19 8/23/2019 www.apollohospitals.com 19
Slide 20: Operational Performance – Hospitals (1/2)
Operational Performance – Hospitals (1/2) (` mio) Tamilnadu Region AP, Telengana Region Total (8) (Chennai & others) (1) (Hyderabad & others) (2) Particulars Q1 FY 19 Q1 FY 20 yoy (%) Q1 FY 19 Q1 FY 20 yoy (%) Q1 FY 19 Q1 FY 20 yoy (%) No. of Operating beds 7,093 7,348 2,120 2,161 1,344 1,344 Inpati
Slide 21: Operational Performance – Hospitals (2/2)
Operational Performance – Hospitals (2/2) (` mio) Karnataka Region Significant Subs/JVs/associates Others (4) (Bangalore & others) (3) (5) Particulars Q1 FY 19 Q1 FY 20 yoy (%) Q1 FY 19 Q1 FY 20 yoy (%) Q1 FY 19 Q1 FY 20 yoy (%) No. of Operating beds 706 770 872 910 2,051 2,163 Inpatient volume 12,5
Slide 22: Operational Performance Standalone Pharmacy
OPERATIONAL PERFORMANCE STANDALONE PHARMACY 22 8/23/2019 www.apollohospitals.com 22
Slide 23: Operational Performance – Standalone Pharmacy
Operational Performance – Standalone Pharmacy (` mio) Batch Particulars Q1 FY 19 Q1 FY 20 yoy (%) Key Highlights No of Stores 1131 1100 Q1FY20 Revenues at ` 10,568 mio, growth of Revenue/store 3.73 3.96 6.3% Upto FY 12 Batch 18.5% EBITDA /store 0.27 0.33 20.8% EBITDA Margin % 7.3% 8.3% 99 bps EBITDA
Slide 24: Update on Apollo Health & Lifestyle, Gleneagles Kolkata & Apollo Munich
UPDATE ON APOLLO HEALTH & LIFESTYLE, GLENEAGLES KOLKATA & APOLLO MUNICH 24 8/23/2019 www.apollohospitals.com 24
Slide 25: Update on AHLL
Update on AHLL (` mio) Clinics Diagnostics Sugar Dental Dialysis Cradles (IP) Spectra (IP) Network 104 567 27 66 28 12 12 Key Highlights Footfalls/Day* 2020 4459 556 162 460 42 82 Gross ARPP (Rs.)* 1744 545 2244 6964 1375 79381 77780 Gross Revenue growth of 23%, primarily driven by 42% growth in Dia
Slide 26: Update on Gleneagles Kolkata & Apollo Munich
Update on Gleneagles Kolkata & Apollo Munich (` mio) Apollo Gleneagles Kolkata Particulars Q1 FY 19 Q1 FY 20 yoy (%) Key Highlights Revenue 1,003 1,143 14.0% Apollo Gleneagles Kolkata reported Revenue of EBITDA 94 156 66.2% ` 1,143 mio in Q1FY20, 14.0% growth margin (%) 9.4% 13.7% 430 bps Profit aft
Slide 27: www.apollohospitals.com
27 8/23/2019 www.apollohospitals.com 27
Slide 28: Appendix: Basis of Consolidation
Appendix: Basis of Consolidation AHEL AHEL Standalone Location Description AHEL Subsidiaries Location Description Ownership Ownership Samudra Healthcare Enterprises Ltd. Kakinada Hospital 100.00% Chennai Main Chennai Hospital Apollo Hospitals (UK) Ltd UK Hospital 100.00% ACI - Chennai Chennai Hospit
Slide 29: Hospitals – Understanding Key Operating Metrics
Hospitals – Understanding Key Operating Metrics Description Formula / Calculation Key Driver Operating Beds • Number of operating beds • Project execution • Capital Expenditure Occupancy • In-patient Bed Days • In-patient Bed Days Billed • Brand • Doctor reputation • Quality of outcomes • Competitio
Slide 30: Thank You
THANK YOU 30 8/23/2019 www.apollohospitals.com 30
Apollo Hospitals Enterprise — Q1 FY2020 Earnings Presentation on 6ix