Shalby Ltd. · NSE:SHALBY
Shalby — Q1 FY2023 Earnings Presentation
41 slides from Shalby's earnings presentation, Jul 26, 2022
Slide 1: Shalby Limited exchange filing cover letter
® SHALBY MUL l•SPEC A TY - HOSPITALS - · July 26, 2022 Shalby/SE/2022-23/37 The Listing Department Corporate Service Department National Stock Exchange of India Ltd BSE Limited Mumbai 400 051. Mumbai 400 001. Scrip Code : SHALBY Scrip Code : 540797 Through : https://digitalexchange.nseindia .com Thr
Slide 2: Growth Unbounded – Investor Presentation Q1 FY2023
Growth Unbounded Investor Presentation Q1 FY2023
Slide 3: Agenda
AGENDA 01 HOSPITAL BUSINESS QUARTERLY PERFORMANCE 02 FRANCHISE BUSINESS QUARTERLY UPDATE 03 SHALBY ACADEMY QUARTERLY UPDATE 04 IMPLANT BUSINESS QUARTERLY PERFORMANCE 05 SHALBY GROUP STRATEGIC POSITIONING 2
Slide 4: Hospital Business (Q1 FY23)
HOSPITAL BUSINESS (Q1 FY23) 3
Slide 5: Hospital Business – Core Values and Strength
Hospital Business – Core Values and Strength Proven leadership in healthcare, setting up Centers Excellence of Excellence to capture massive opportunities 11 5 1,200+ Lazer sharp focus on upgrading the skills of our Hospitals States Operational Beds Learning team and building people capability ensur
Slide 6: Hospital Portfolio
Hospital Portfolio Vapi Shalby Indore Shalby Jaipur Shalby SOCE Krishna Shalby Mohali Shalby Naroda Shalby Vijay Shalby SG Shalby Jabalpur Shalby Zynova Shalby Surat Shalby (Mumbai) 5 Units are arranged as per its year of commencement of operation
Slide 7: Biggest Healthcare Corporate Group in Western and Central India
Biggest Healthcare Corporate Group in Western and Central India ➢ National Presence Existing 11 Units (2012 beds) PUNJAB 59 OPDs across 16 states ▪ Mohali – 145 beds Upcoming 2 Units (321 Beds) RAJASTHAN ▪ Jaipur – 237 beds MAHARASHTRA ▪ Mumbai (Santacruz) – 175 beds ▪ Nashik – 146 beds GUJARAT ▪ Ah
Slide 8: State-of-the-Art Medical Infrastructure Across All Units
State-of-the-Art Medical Infrastructure Across All Units 3D Neuro / Spine Cath Lab CT Machine Linear Accelerator MRI Machine Navigation For Angiography & Detecting abnormalities in the A Linear accelerator can be Radiology Equipment Enables clear visualization Angioplasty body, such as tumors, used
Slide 9: State-of-the-Art Medical Infrastructure Across All Units
State-of-the-Art Medical Infrastructure Across All Units IVUS System ECMO Machine Breast Biopsy EVH System CRRT System IVUS is an imaging It is similar to the heart- System Endoscopic Vessel CRRT is blood purification technique that uses a lung by-pass machine To check a lump or mass Harvesting syst
Slide 10: Clinical Excellence Across Specialties during Q1 FY23
Clinical Excellence Across Specialties during Q1 FY23 ▪ Shalby SG and Indore performed 13 transplant (Kidney and Liver) during this quater ▪ Total 12 Revision Knee Replacement surgeries and 1 Revision Hip Replacement surgery performed ▪ Six times failed hip replacement surgery of a Ghana patient don
Slide 11: Sustainability Initiatives
Sustainability Initiatives ESG Mindset “We at Shalby are embracing sustainability to drive new values to our business” Community Connect 15 Healthcare Camps and screening 3700+ patients • We at Shalby are committed to embrace sustainability to drive new values to our business Workplace Wellness with
Slide 12: Shalby In News
Shalby In News Business Update & Growth Featured in an article Interview of Dr Vikram Shah, CMD 11
Slide 13: Shalby In News
Shalby In News Free Orthopedic & Other Health Check-up Camps at various locations. World leader in Joint Replacement. Shalby Jaipur completed 5 years 12
Slide 14: Shalby In News
Shalby In News Shalby Hospitals achieves the milestone of treating 15000 West Bengal patients. Shalby starts free orthopedic & joint diseases camps in North East. Our cardiologist featured in an article on heart health in The Week, one of the leading magazines of India. Shalby psychiatrist featured
Slide 15: Steward Leadership
Steward Leadership Shalby Jaipur completed five years. It is the biggest joint Shalby’s Head of Hip Surgery curated India’s First Joint Implants replacement center of Rajasthan and one of the leading Museum that opened in Ahmedabad recently hospitals in cardiac treatment 14
Slide 16: Hospital Portfolio Expansion
Hospital Portfolio Expansion Santa Cruz Development Update Business Model: Revenue Sharing ▪ A 175 bedded hospital in the heart of Mumbai, Santacruz, to Bed Capacity: 175 be equipped with state-of-the-art equipment and technology Operating and Management Term: 30 + 30 years ▪ Diversifying Shalby pre
Slide 17: Q1 FY2023 Performance Highlights (QoQ)
Q1 FY2023 Performance Highlights (QoQ) Rs. million ▪ Total Income of Rs.1,810 mn grew by 19% q-o-q primarily driven by rise in elective surgeries which drove our core specialties 1,810 428 328 215 ▪ EBITDA of Rs 427 mn, grew by 32% q-o-q 323 157 1,523 226 ▪ EBITDA margin of 23.8% in Q1 FY23 as compa
Slide 18: Leader in Arthroplasty with increasing focus on Multi Specialty
Leader in Arthroplasty with increasing focus on Multi Specialty Revenue Mix : Q1 FY2023 Others, 12% Arthroplasty, 44% Nephrology & Urology, 4% Neuro Science, 5% Orthopaedic, 9% Critical Care & OncoScience, General 10% Medicine, 7% Cardiac Science, 9% Q1 FY2023 Surgery Count and Q-o-Q Growth 3.513 31
Slide 19: Q1 FY2023 Hospital Performance (Maturity wise)
Q1 FY2023 Hospital Performance (Maturity wise) Hospital - 10+ Years Hospital - 5-10 Years Hospital - 0-5 Years 228 670 337 Operational Beds Operational Beds Operational Beds Rs. 559 mn 32% Rs. 881 mn 50% Rs. 332 mn 18% Revenue Revenue Revenue Revenue Revenue Revenue Contribution Contribution Contrib
Slide 20: Q1 FY2023 Performance Trends
Q1 FY2023 Performance Trends Total Revenue (Rs. Mn) Operating EBITDA (Rs. Mn) and Margin 24.4% 20.1% 20.4% 21.2% 23.6% 1,828 1,810 1,717 1,531 1,523 446 428 345 323 312 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 PBT (Rs. Mn) and Margin Reported PAT (Rs. Mn) and M
Slide 21: Q1 FY2023 Performance Trends
Q1 FY2023 Performance Trends Robust operational performance with growth In-Patients count and Surgery count resulting in higher ARPOB q-o-q basis In Patients Count Day Care Patients Count Out-Patients Count 11,044 5,666 1,11,961 10,608 10,432 5,108 5,212 5,319 1,02,733 9,934 9,629 4,931 88,304 68,91
Slide 22: Q1 FY2023 Performance Trends
Q1 FY2023 Performance Trends No of Bed Occupied Occupancy Rate* COVID Impact COVID Impact 723 59% 557 517 513 499 43% 45% 42% 40% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Average Length of Stay (ALOS) Revenue by Payor Mix COVID Impact 50% 6.10 37% 40% 40% 35% 3
Slide 23: Q1 FY2023 Performance Trends
Q1 FY2023 Performance Trends Total Revenue to EBITDA Bridge 24.4% 20.1% 20.4% 21.2% 23.6% 6.9% 6.7% EBITDA % 7.0% 9.7% 6.8% 11.0% 11.1% 12.7% 13.0% 11.2% Other Expenses % Employee Benefit Expenses % Purchase and Change in Inventory % 56.1% 57.9% 58.4% 57.7% 57.2% Operative and Other Expenses % Q1 FY
Slide 24: Q1 FY2023 Performance Highlights
Q1 FY2023 Performance Highlights Particulars (in Rs. Millions) Q1 FY23 Q4 FY22 QoQ Growth Q1 FY22 YoY Growth In-Patient Count (Nos.) 11,044 9,629 14.7% 9,934 11.2% Day-Care Patient Count (Nos.) 5,666 5,319 6.5% 5,108 10.9% Out patient Count (Nos.) 1,11,961 1,02,490 9.2% 58,745 90.6% Surgeries Count
Slide 25: Q1 FY2023 Performance Highlights – Standalone
Q1 FY2023 Performance Highlights – Standalone Particulars (in Rs. Millions) Q1 FY23 Q4 FY22 QoQ Growth Q1 FY22 YoY Growth Revenue from Operations 1,771 1,478 19.8% 1,801 (1.7)% Other Income 39 45 (12.6)% 27 47.4% Total Income 1,810 1,523 18.9% 1,828 (0.9)% Expenses COGS 1,056 901 17.2% 1,052 0.4% %
Slide 26: Q1 FY2023 Capital Structure
Q1 FY2023 Capital Structure Net cash positive balance sheet to support future growth plans. Double digit ROCE of 17% on Q1 FY23 annualized basis Well Capitalized Balance Sheet to Fund the Growth Capex Plans Return on Capital Employed Figures in Rs Million FY 19 FY 20 FY 21 FY22 Q1 FY23 17% 14% Cash
Slide 27: Franchise Business – SOCE (Q1 FY23)
FRANCHISE BUSINESS – SOCE (Q1 FY23) 26
Slide 28: Leveraging Expertise Through Franchise Asset Light Model Under SOCE
Leveraging Expertise Through Franchise Asset Light Model Under SOCE SHALBY ORTHOPEDIC CENTRE OF EXCELLENCE An Asset light franchise model will leverage Shalby expertise and enable to penetrate faster across pan-India FOSO Model Shalby • Franchisee is responsible for all capex Shalby Franchise System
Slide 29: Franchise Business Performance and Outlook
Franchise Business Performance and Outlook MOUs singed & Operationalised with Future Plan In Place Q2 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Udaipur – 30 Beds | FOFO Vijay relaunched as SOCE 5-6 MOU’s under Lucknow– 40 Beds | FOSO evaluation Rajkot – 30 Beds | FOSO Gwalior – 35 Beds | FOSO Kanpur – 35 Beds |
Slide 30: Shalby Academy (Q1 FY23)
CO) SHALBY ACADEMY (Q1 FY23) ne, SHALBY ACADEMY ol
Slide 31: Shalby Academy
Shalby Academy Q1 FY2023 highlights 1. Trained more than 445 students on the various disciplines like Physiotherapy, Nursing, Lab Technician Nutrition & Dietetic, Clinical, Paramedics, Hospital Management and Pharmacy as Students Enrolled (In Nos) part of their academic outreach. 578 2. 90 students
Slide 32: Shalby Academy – A Value System
Shalby Academy – A Value System Well Equipped Simulation Lab Our Strengths ▪ Availability of Simulation Lab for experiential Various Categories of learning Courses ▪ Certified clinical (BLS) trainers • Up-skilling Courses for ▪ Equipped with digital LMS platform Nurses ▪ Availability of clinical in-
Slide 33: Implant Business (Q1 FY23)
IMPLANT BUSINESS (Q1 FY23) 32
Slide 34: Background of Consensus
Diversified into Implants Manufacturing By Acquiring Consensus Orthopedics Assets USA Founded as Hayes Medical, 75% Growth in US by Background of Consensus Shalby has acquired Shalby Advanced headquartered in forming Partnership with assets, inventories and El Dorado Hills, California various distri
Slide 35: Implant Business - Focused Key Joint Demographic Markets
Implant Business - Focused Key Joint Demographic Markets Shalby Advanced Technologies plans to reach out globally in a phased manner Current Phase 1 Phase 2 Phase 3 Presence North Japan India (already soft launch) Middle East Countries East Africa America South East Asian Countries • UAE • Kenya • I
Slide 36: Implant Business - Quarterly Performance
Implant Business- Quarterly Performance Key Performance Highlights Growing towards operational breakeven 300 3% 2% 10% Rs. MN ▪ In Q1 FY23, recorded total revenues of Rs 262 mn (April’22 to June’22) grew -16% 0% 250 -21% -10% by 156% q-o-q also includes Rs 118 mn sales to India 262 -20% 200 -30% ▪ O
Slide 37: Building Integrated Orthopedic Implant Ecosystem
Building Integrated Orthopedic Implant Ecosystem Shalby is a Leader in Joint Replacement with 15% Market Share • Performed more than 1,38,000 joint replacement surgeries since inception • Performs More than 12,000+ surgeries every year with an aim to perform 15,000+ in FY 23 • Indian orthopedic indu
Slide 38: Well Positioned to Deliver Long Term Sustainable Growth
Well Positioned to Deliver Long Term Sustainable Growth Diversified into Implants Manufacturing Leader in 28 Years of ELITE Arthroplasty with Legacy Increasing Focus on Multi Specialty Clinical Excellence backed by State-of- SHALBY Hospital Portfolio Expansion the-Art Infrastructure LIMITED Consiste
Slide 39: Q1 FY2023 Performance Highlights - Consolidated
Q1 FY2023 Performance Highlights - Consolidated Particulars (in Rs. Millions) Q1 FY23 Q4 FY22 Q-o-Q Growth Q1 FY22 Y-o-Y Growth Revenue from Operations 2,017 1,626 24.1% 1,924 4.8% Other Income 40 43 (6.6)% 25 58.7% Total Income 2,057 1,668 23.3% 1,949 5.5% Expenses COGS 1,108 907 22.2% 1,126 (1.6)%
Slide 40: Strong Investment Case Summary
Strong Investment Case Summary Figures in Rs Million FY 19 FY 20 FY 21 FY22 Q1 FY23 Key Valuation Metrics 25 July 2022 861 1,025 1,349 2,026 1,813 Share Price (in Rs) 115.6 Cash and Investments (A) 708 622 440 1550 1,374 Gross Borrowings (B) Number. of Shares ( in Cr) 10.7 Net Cash (A-B) 153 403 909
Slide 41: Disclaimer and Contact Details
DISCLAIMER and CONTACT DETAILS No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as