Apollo Hospitals Enterprise Limited · NSE:APOLLOHOSP
Apollo Hospitals Enterprise — Investor Presentation (March 2021)
44 slides from Apollo Hospitals Enterprise's investor presentation, March 2021
Slide 1: Investor Presentation March 2021
INVESTOR PRESENTATION March 2021 1
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, 2021 1 Healthcare 50% 71 10,209 55% 4.19 days INR 40,214 / 352,000+ 4,200,000+ Services of revenue Hospitals Beds Occupancy ALOS3 day In-patients Out-patients rates2 ARPOB4 Apollo 1 Health and 6% Of revenue 4,118 INR 11.8mm 9.95% Lifestyle Outlets Revenue / st
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 71 1 26 25 21 16 14 13 11 11 10 6 Fortis Healthcare Healthcare Global Narayana Max Healthcare Aster DM Care Hospitals Columbia Asia Shalby Ltd Manipal Hospitals Sterling Hospitals Ltd Enterp
Slide 7: Pan India Presence
PAN INDIA PRESENCE Steadily increasing footprint supporting meaningful upside in future 71 hospitals present across India Healthy mix by category Owned hospitals Day care centers / CRADLE Managed hospitals 5 851 851 542 542 Delhi: 5 Amritsar: 1 22 44 Noida: 1 71 10,209 8,930 8,816 7,409 Kanpur: 1 Bi
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 Chandigarh: 6 Himachal Pradesh: 1 Uttarakhand: 6 Extensive Asset-light model Econom
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 and Regulation
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 Back of Clinical Excellence
QUALITY HEALTHCARE SERVICES DELIVERY ON THE BACK OF WORLD-CLASS CLINICAL EXCELLENCE Leaders in clinical quality & excellence – 8 hospitals received JCI accreditations & 321 hospitals NABH accreditations Significant contribution (60%) from high-end tertiary care practice2 35 Units 36 Units 10,0
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: Strong Growth in Revenues Across Businesses
STRONG GROWTH IN REVENUES ACROSS BUSINESSES … Total Consolidated Revenues (1) (` Mn) FY 21 Consolidated Consolidated Revenues FY 21 Numbers impacted by COVID-19 pandemic Revenues of $ 1.5 billion (2) CAGR (FY13-21) of 14%. (1) Revenue is net of fees paid to fee-for-service consultants in Hospitals (
Slide 20: Aided by Strong Operating Metrics (1/2)
… AIDED BY STRONG OPERATING METRICS (1/2) Operational Highlights Occupancy rates remain Average length of stay Average revenue per high despite bed (ALOS) has reduced across occupied bed (ARPOB) has additions the portfolio grown at a healthy CAGR of • Growth of in-patient • Reduced in mature 8% over
Slide 21: Aided by Strong Operating Metrics (2/2)
… AIDED BY STRONG OPERATING METRICS (2/2) FY 21 Numbers impacted by COVID-19 pandemic Bed Occupancy Rate(1) % In-patient Admissions (‘000) Operating Beds 478 399 428 451 3,930 4,257 4,767(2) 5,153(2) 5,549(2)5,811(2) 6,321 6,724 6,940 7,111 7,246 7,491 7,409 374 281 313 332 354 352 76% 73% 73% 71% 7
Slide 22: Resulting in Consistent Profitability
… RESULTING IN CONSISTENT PROFITABILITY FY 21 Numbers impacted by COVID-19 pandemic Segment wise EBITDA Margins (%) Mature Hospitals EBITDA target of 23%-24% over 22% 23% 24% 24% 23% 20% 21% 22% 21% 21% 21% 21% the next 3 years. 14% 7% 8% 8% * 5% 6% 6% 3% 3% 3% 4% 5% 0% 2% 3% 2% 14 New hospitals inc
Slide 23: And Healthy Return on Investment
… AND HEALTHY RETURN ON INVESTMENT FY 21 Numbers impacted by COVID-19 pandemic # ROCE - Mature Healthcare Services (%) 24% 27% 20% 20% 20% 17% 15% 19% 18% 19% 18% 18% 12% Steady Improvement in Return on Capital Employed (ROCE) Efficiency (Asset Turnover) Profitability FY 09 FY 10 FY 11 FY 12 FY 13 F
Slide 24: Standalone Pharmacies: Capturing the Growth Potential
STANDALONE PHARMACIES: CAPTURING THE GROWTH POTENTIAL Proven ability to expand the store network 4,118 • India’s largest Organized Pharmacy Chain with 3,021 3,428 3,766 Pharmacy presence in ~400 cities/ towns spread across 20 2,326 2,556 store 1,822 States and 4 union territories. 883 1,049 1,199 1,
Slide 25: FY21: Financial Performance (1/7)
FY21: FINANCIAL PERFORMANCE (1/7) Standalone Financials (` Mn) Consolidated Financials (` Mn) FY 20 FY 21 yoy (%) FY 20 FY 21 yoy (%) Revenue 97,944 91,530 -6.5% Total Revenues 112,468 105,600 -6.1% Operative Expenses 51,820 53,574 3.4% EBITDA (Pre Ind AS 116) 12,880 9,122 -29.2% Employee Expenses 1
Slide 26: Q4 FY21: Segment-wise Performance (2/7)
Q4 FY 21 : SEGMENT-WISE PERFORMANCE (2/7) Standalone Financials (` mn) Healthcare Service Healthcare Services Pharmacy New Hospitals Proton Standalone (Mature) (Total) Distribution Hospitals 21 10 1 32 Operating beds 3,163 1,563 53 4,779 Occupancy 63% 57% 35% 61% Revenue 9,407 3,197 309 12,913 11,18
Slide 27: FY21: Segment-wise Performance (3/7)
FY 21: SEGMENT-WISE PERFORMANCE (3/7) Standalone Financials (` mn) Healthcare Service Healthcare Services * Pharmacy New Hospitals Proton Standalone (Mature) (Total) Distribution Hospitals 21 10 1 32 Operating beds 3,163 1,563 53 4,779 Occupancy 52% 54% 35% 53% Revenue 30,663 11,125 982 42,770 48,76
Slide 28: Q4 FY21: Segment-wise Performance (4/7)
Q4 FY 21 : SEGMENT-WISE PERFORMANCE (4/7) Consolidated Financials (` mn) Healthcare Serv Healthcare Serv Healthcare Serv Pharmacy Group (New & Proton AHLL Consol Group (Mature) Group (Total) Distribution Others) Hospitals 30 13 1 44 Operating beds 5,290 2,066 53 7,409 Occupancy 64% 60% 35% 63% Reven
Slide 29: FY21: Segment-wise Performance (5/7)
FY21: SEGMENT-WISE PERFORMANCE (5/7) Consolidated Financials (` mn) Healthcare Serv Healthcare Serv Healthcare Serv * Pharmacy Group (New & Proton AHLL Consol Group (Mature) Group (Total) Distribution Others) Hospitals 30 13 1 44 Operating beds 5,290 2,066 53 7,409 Occupancy 54% 57% 35% 55% Revenue
Slide 30: FY21: Hospital Cluster-wise Operational Performance (6/7)
FY21: HOSPITAL CLUSTER - WISE OPERATIONAL PERFORMANCE (6/7) Tamilnadu Region AP, Telengana Region Total (8) (1) (Chennai & others) (Hyderabad & others) (2) Particulars FY 20 FY 21 yoy (%) FY 20 FY 21 yoy (%) FY 20 FY 21 yoy (%) No. of Operating beds 7,491 7,409 2,208 2,043 1,344 1,344 Inpatient volu
Slide 31: FY21: Hospital Cluster-wise Operational Performance (7/7)
FY 21: HOSPITAL CLUSTER - WISE OPERATIONAL PERFORMANCE (7/7) Karnataka Region Others (4) Significant Subs/JVs/associates (5) (Bangalore & others) (3) Particulars FY 20 FY 21 yoy (%) FY 20 FY 21 yoy (%) FY 20 FY 21 yoy (%) No. of Operating beds 769 769 962 1,011 2,208 2,242 Inpatient volume 55,881 45
Slide 32: Apollo Health and Lifestyle – Retail Healthcare
APOLLO HEALTH AND LIFESTYLE – RETAIL HEALTHCARE Revenue FY21 of INR 6,818 mm – Primary Care (27%), Diagnostics (20%) & Specialty Care (53%) Multi specialty clinics that extend Apollo’s expertise to Dialysis services, PPP centres in AP, Assam & Bihar the neighborhood 69 Centers 191 Clinics
Slide 33: Strong Management Team
05 STRONG MANAGEMENT TEAM 33
Slide 34: Apollo Has Always Been at the Fore-front of India's Healthcare
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 35: 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 36: 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 37: Strategy for Future Growth
STRATEGY FOR FUTURE 06 GROWTH 37
Slide 38: Strategy for Future Growth (1/2)
STRATEGY FOR FUTURE GROWTH (1/2) Strategy Optimise Asset Utilisation in facilities & locations 30 5,954 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 39: 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 1140 35* & Lifestyle Primary care Specialty (AHLL) centers care centers Derive economies of scale that arise from the largest ph
Slide 40: Apollo HealthCo: Transformational Value Unlocking
Apollo HealthCo: Transformational Value Unlocking Reorganization through Slump Sale AHEL • Apollo 24/7 represents Apollo Group’s transformational journey to creating “India’s (Listed) Largest Omnichannel Digital Healthcare Platform” that: Backend Healthcare Pharmacy + — combines the strengths of Apo
Slide 41: 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 ~6.6M+ ~2.9 lakh+ 1 2 3 Registrations Doctors across 3mm+ Annual Online consults Diagnostic cente
Slide 42: 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 43: Update on Impact of COVID-19
UPDATE ON IMPACT OF COVID-19 Enhancing protocol driven 40,000+ 20,000+ 8,500+ 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 44: 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
Apollo Hospitals Enterprise — Investor Presentation (March 2021) on 6ix