Max India Ltd · NSE:MAXIND
Max India — Investor Presentation (August 2011)
63 slides from Max India's investor presentation, August 2011
Slide 1: Max India Limited Investor Presentation
Max India Limited Investor Presentation August 2011 www.maxindia.com BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:IN 1
Slide 2: Max Group - Overview
MAX GROUP - OVERVIEW www.maxindia.com 2
Slide 3: Max India - In the Business of Life
Max India—―In the Business of Life‖ Multi-business corporate Focused on people and service ― IN THE BUSINESS OF LIFE ” Life Insurance Healthcare Health Insurance Clinical Research Protecting Life Caring for Life Enhancing Life Improving Life 74:26 JV with New 91.8%* ownership; 74:26 JV with BUPA 100
Slide 4: A unique investment opportunity and a resilient business model
A unique investment opportunity and a resilient business model 1 USD 1.8 bn. Revenue*.. 5 Mn Customers..13,000 Employees..40,000 Agents..1,300 Doctors 2 Strong growth trajectory even in challenging times; a resilient & diversified business model 3 Steady revenue growth sustains Max India‘s strong fi
Slide 5: Well poised to capitalize on significant growth opportunity
Well poised to capitalize on significant growth opportunity represented by life centric businesses • Net Profit for Q1FY12 at Rs. 70 Cr. against loss of Rs. 25 Cr. for Q1FY11 • Operating Revenue for Q1FY12 at Rs. 1,676 Cr., grows 12% y-o-y Max India sustains strong • Promoters subscribe 3% stake in
Slide 6: Consistent track record of strong growth across businesses
Consistent track record of strong growth across businesses Rs Crore Total Revenue Trend 10000 8000 Operating revenue for Q1 FY12, at Rs. 1,676 Cr, grows 12% y-o-y 6000 4000 7661 7891 AUM increases around Rs. 15,000 Cr. as 4891 at June 2011, grows 5% y-o-y 2000 3611 1111 1994 0 Net Profit for Q
Slide 7: Growth potential recognized by the market
Growth potential recognized by the market…. high pedigree investor base Shareholding Pattern as on August 04, 2011 Others 12% • First State 22% of FII • Fidelity • Temasek Shareholding • Janus Promoter 37% Concentrated • Federated Kaufmann FII (Others) with 10 • Matthews 26% • Morgan Stanley Marquee
Slide 8: Max New York Life Insurance
MAX NEW YORK LIFE INSURANCE www.maxnewyorklife.com 8
Slide 9: MNYL: A synergistic partnership
MNYL: A synergistic partnership Max India New York Life • Fortune100 company with • India‟s leading conglomerate track record of 180 years • Successful track record of • AUM of more than $ 283 building businesses billion • Expertise in life insurance and • Strong expertise on LTSP healthcare busines
Slide 10: 2010 has been a turbulent year marked by unprecedented regulations
2010 has been a turbulent year marked by unprecedented regulations Regulations increase customer value The IRDA regulations were proposition significantly; to benefit unprecedented in their intensity and insurers over long-term; short-term pace of implementation… profitability adversely impacted Cou
Slide 11: MNYL has taken a lead by re-aligning its strategy
MNYL has taken a lead by re-aligning its strategy across key levers of success Elements From… …to Product and Investment oriented with lower LTSP oriented with a bias towards sales margins margins traditional products with higher margins Customer Mass + Mass Affluent + segment High-quality, producti
Slide 12: Huge opportunity across the target product and customer segments
Huge opportunity across the target product and customer segments Likely need for LTSP* without any supply- Mass affluent+ segments side constraints in mass affluent+ represents 80% of all new segment business premiums INR Cr. Percent, FYP, FY 2010 100% = Rs. 81,700 Cr. 60-80,000 Demand supply gap of
Slide 13: MNYL successfully shifts to traditional products
MNYL successfully shifts to traditional products while major players continue to be ULIP heavy ULIP Trad Mix Jan – Sep 2010 Oct – Jun 2011 SBI Life 97% 3% SBI Life 85% 15% HDFC Life 85% 15% HDFC Life 75% 25% ICICI Pru 92% 8% Birla Sunlife 60% 40% Birla Sunlife 92% 8% ICICI Pru 60% 40% Aviva Life 95%
Slide 14: The Essence of our chosen Strategy
The Essence of our chosen Strategy Our objective To be the most admired life insurance Sources of competitive advantage company in India with sharp focus on financial metrics ‖Build a robust multi- channel distribution Our approach To serve the long-term savings and architecture while MNYL‘s proprie
Slide 15: MNYL well positioned for the transformation
MNYL well positioned for the transformation Average case size per agent for Q1FY12 at Rs. 23,041 and Average case rate per Highly productive agency agent for Q1 FY12 at 0.53 model and best in class Advise based insurance sales training 400+ trainers on board Fast Track Plan Unit Linked Produ
Slide 16: Max Bupa Health Insurance
MAX BUPA HEALTH INSURANCE www.maxbupa.in 16
Slide 17: A symbiotic partnership in the health insurance space
A symbiotic partnership in the health insurance space • India‟s leading conglomerate • Largest independent health • Successful track record of insurance provider in UK building businesses • 11 million customers in over 190 • Expertise in life insurance and countries healthcare businesses • Group rev
Slide 18: Industry is poised for an exponential growth
Industry is poised for an exponential growth Indian Healthcare insurance market size – GWP ` Rs. billion CAGR Key drivers of growth Percent ▪ Increase in affordability 285 25 – Increasing affordability with rise 60 33 in income levels and healthcare Government spend per capita 115 22 sponsored ▪ Inc
Slide 19: Max Bupa to capitalise on this opportunity
Max Bupa to capitalise on this opportunity through innovative product and superior service offering Relationship Manager for Simplicity, Gold & Platinum Good Transparency: Hospitalization Hassle free claim Customers experience: Technology & Comprehensive processing; No Cashless processing; automatio
Slide 20: Extensive focus on key growth levers
Extensive focus on key growth levers to maximize long-term value Leveraging Max India capabilities •Max India has a strong understanding of Insurance business in India Factsheet* – Max Bupa •Effectively implement learning's from Max New York Life‟s success •Leverage synergies with Max New York Life
Slide 21: Max Healthcare
MAX HEALTHCARE www.maxhealthcare.in 21
Slide 22: Indian healthcare industry poised for exponential growth
Indian healthcare industry poised for exponential growth KEY HIGHLIGHTS • Indian Health Industry is poised to double to USD 125 bn by 2015E, driven by a combination of ageing population, growing lifestyle diseases and medical insurance penetration as well as increasing ability to afford quality heal
Slide 23: Increasing prevalence and propensity are key market drivers
Increasing prevalence and propensity are key market drivers Growing Health Insurance Market... Comparative medical cost 120 India UK US 100 100 80 65 (USD ‟000s) Rs billion 60 48 111 84 32 40 24 66 18 19.2 51 8.5 9.8 20 32 7 4.5 6.4 14 17 22 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Open Heart Knee
Slide 24: MHC unique model positioned to deliver high quality of care
MHC, with its unique model* is well positioned to deliver high quality of care to patients Quaternary Care •Stem Cells •Organ Transplant Max Hospital - Gurgaon • Neurosciences Tertiary Care • Oncology • Cardiac Care - Max Super Specialty Hospitals – Saket • Minimally Invasive & Metabolic Surgery - M
Slide 25: Extensive focus on service excellence
Extensive focus on service excellence – a key strength for MHC Comprehensive and integrated healthcare services • Complete service profile, cutting edge technology and state of the art infrastructure • North India centric strategy allows leveraging of medical capabilities Well established brand name
Slide 26: MHC delivering superior performance across all key metrics
MHC delivering superior performance across all key metric Revenue and Contribution Margin Avg. operational beds and Avg. revenue per occupied bed day* 59.2% 59.0% 600 1000 25000 57.2% 19433 20431 21558 56.5% 57.0% 800 18914 20000 450 15540 14964 55.0% 600 15000 300 53.1% 926 53.0% 400 10000 51.5% 71
Slide 27: MHC to double bed capacity and expand to Northern India
MHC to double bed capacity and expand from NCR to Northern India Bed Capacity Date of No. of 3000 Facility Commencem 2110 Beds 2500 1860 -ent 2000 1500 Max Hospital, 150 Nov‘ 2011 1100 1000 770 Dehradun ** 500 0 Max Hospital, 300 Sep‘2011 FY09 FY10 FY12 FY16 Shalimar Bagh Bed Capacity Max Hospital,
Slide 28: Max Neeman Medical International
MAX NEEMAN MEDICAL INTERNATIONAL www.neeman-medical.com 28
Slide 29: India is one of the fastest growing clinical research destinations
India is one of the fastest growing clinical research destinations # of industry sponsored trials initiated in 2008 Growth of the Clinical Trial Industry in India 350 300 250 US$ Million 243 199 212 200 172 157 154 115 137 129 150 300 56 250 100 Philippines Hungary Taiwan India Romania Brazil China
Slide 30: MNMI: A comprehensive service offering
MNMI: A comprehensive service offering • Full service contract research organization (CRO) with focus on Phase II, III & IV trails • Service offerings include: Project management, Site management, Data management, including, bio- statistics and report writing, monitoring services and supply chain ma
Slide 31: Max Speciality Films
MAX SPECIALITY FILMS www.maxspecialityfilms.com 31
Slide 32: Industry marked by robust global and domestic demand
Industry marked by robust global and domestic demand BOPP Global Demand and Supply 10000 100% 77% 76% 77% 77% 78% 8000 80% 7500 7900 6000 6750 7130 60% 6480 (KTA) 4000 40% 2000 20% 4950 5150 5500 5800 6300 0 0% 2007 2008 2009 2010 2011 Capacity Production Utilization Key Highlights •Growth of flexib
Slide 33: MSF uniquely positioned to create value
With MSF uniquely positioned to create value Speciality Metallised Commodity Coated Films Foils (Preferred) Films End Use Packaging, Packaging, Packaging, Packaging, Lifestyle, Industrial, Lamination, Lamination Industrial Apparels Textiles Industrial, Our Focus Max Speciality Films is much more tha
Slide 34: Visibility in Top Brands
Visibility in Top Brands You will Find MSF films in… 34
Slide 35: Backed by consistent performance
Backed by consistent performance Capacity Utilization • All BOPP lines are operating at 100% capacity utilization New Product Development • Special Films developed for Pepsi‟s „Aliva‟ & Cadbury‟s Silk Performance • Revenue of Rs. 179 Cr. and PBT of Rs. 11 Cr in Q1FY12; y-o-y growth of 95% and 98% •
Slide 36: Max India Foundation
MAX INDIA FOUNDATION www.maxindiafoundation.org 36
Slide 37: Max India Foundation: Making a difference to life
MAX INDIA FOUNDATION Making a difference… to life Max India Foundation Factsheet* –MIF Locations 288 • Corporate Social Responsibility (CSR) Arm of the NGO Partners 252 Max India Group with a focus on Health, Children & Environment Beneficiaries 160,309 • Provides on Select Basis Treatment and Care
Slide 38: Thank You
SMAx Thank You
Slide 39: Max India Corporate - Management Team
Max India Corporate – Management Team Mr. Analjit Singh has been the driving force behind Max Group‟s sustained growth and success since the early Mr. Analjit Singh 80‟s. Mr. Singh a prominent industrialist is an alumnus of Doon School; University of Delhi, and the Graduate Executive Chairman School
Slide 40: Road Map to Becoming India's Most Admired Life Insurance Company
Road Map to Becoming India‘s Most Admired Life Insurance Company Key Public Messages VISION Become the most admired Life Insurance Company in India A dynamic and solid life insurance company Customer centric Amongst top 5 private life insurance companies by Financially responsible and strong p
Slide 41: MNYL - Management Team
MNYL – Management Team Mr. Rajesh Sud – Mr. Sud, a founder member, has been instrumental in establishing MNYL‟s distribution footprint across India. Today Managing Director and MNYLs Agency model is recognized as “best-in-class”. Prior to joining MNYL, he was the CEO & Managing Director CEO of Esand
Slide 42: Leading agency force in the industry
Leading agency force in the industry Average Average Agency Share in New Apr-Jun 2011 Agency FYP Agent Count Agent Rank Agent Case Rank Business Productivity Rate Rs. Cr % # ` 000s # 166 44% 40,520 13,616 1 0.53 1 253 54% 79,628 10,600 2 0.29 3 56 59% 34,957 5,307 3 0.33 2 35 42% 23,219 5,052 4 0.15
Slide 43: Focus on long-term savings & protection market
Focus on long-term savings & protection market PRODUCT TYPE PROPORTION OF Tenure Age of Insured POLICIES (%, by number) (Years) (Years) WHOLE LIFE 18.73 44 32 ENDOWMENT 18.86 18 32 TERM 1.31 25 33 DEFERRED 18 40 0.19 ANNUITY MONEY BACK 6.88 15 33 UNIT LINKED 53.1 15 36 HEALTH 0.94 14 38 21 34 MNYL A
Slide 44: Market Position Insurance Sales
Market Position Insurance Sales S. Company Individual New Business Premium (Rs. Cr) Individual Policies (‗000) No. Premium Adjusted for 10% single premium YTD Jun11 YTD Jun 10 Growth (%) Market YTD Jun YTD Jun 10 Growth (%) Share 11 1 ICICI Prudential 380 1,060 -64% 13.7% 301 335 -10% 2 HDFC Standar
Slide 45: MNYL - Embedded Value
MNYL – Embedded Value Amount in Rs. Crore March 31, 2011 255 79 98 3,216 336 235 Cost Other Non 2,723 Unwind of Overrun* Operating Operating Discount Variance Variance Value of New Business 2,075 1,843 Implied NBM** is 19.5% on APE*** (20.0% in 2009-10) 880 1,141 Opening EV Closing EV Denotes increa
Slide 46: MNYL - Key Assumptions to Embedded Value
MNYL – Key Assumptions to Embedded Value Economic Assumptions Particulars Assumptions Cash / Money Market / TB 5.50% G Secs 8.01% Corporate Bonds 8.91% Equities 13.00% Unit Linked Fund Growth Rate 10.25% Interest Rate on Non-Unit Reserves 7.75% Inflation 6.00% Risk Discount Rate 13.00 % Service Tax
Slide 47: MNYL - Basis of Preparations for Embedded Value
MNYL – Basis of Preparations for Embedded Value MNYL‘s EV guided by European Embedded Value principles ―Top down‖ allowance for risk including allowance for time value of financial options and guarantees Explicit allowance for cost of capital where capital is the higher of the required solvency marg
Slide 48: Track record of successful performance
Track record of successful performance New Business Growth – Adjusted FYP 1 and Renewal premium and conservation ratio 2 AUM 2000 16000 4000 120% 13836 14000 3500 1500 10,121 12000 3000 90% 10000 2500 89% 1000 8000 2000 80% 83% 82% 83% 81% 5405 78% 6000 1500 3575 60% 500 4000 1000 1835 478 886 2000
Slide 49: Max New York Life Insurance
Max New York Life Insurance Key Business Drivers Unit Quarter Ended Y-o-Y June-11 June-10 Growth a) Gross written premium income Rs. Crore First year premium 334 405 (18)% Renewal premium 966 845 14% Single premium 73 54 36% Total 1,373 1,304 5% b) Individual Adjusted Premium (APE*) Rs. Crore 329 38
Slide 50: MHC - Vision / Mission
MHC – Vision / Mission Key Differentiators PASSION Build Trust Focused NCR centric delivery – for operational excellence Deliver international class healthcare with a total service focus, by creating an Leadership in 5 super-specialties in tertiary care VISION institution committed to the highes
Slide 51: MHC - Key Physicians
MHC – Key Physicians Padma Shri Dr. Rustom Phiroze Soonawala Eminent and Internationally renowned Obstetrician & Gynaecologist. MD, FRCS, FRCOG Former President of the Federation of Obstetricians and Gynaecologists Chairman, Obstetrics & Gynaecology Dr. S.K.S. Marya (M.S., DNB, Mch, FICS) Reno
Slide 52: MHC - Key Physicians
MHC – Key Physicians Dr. Anurag Krishna 20 years experience in Paediatric surgery -complex congenital malformations MS, MCh., FAMS Published 50 scientific papers in leading national and international journals Director, Paediatrics and Paediatric Surgery Served as Member of the Board of Managem
Slide 53: MHC Shareholding pattern & Key Highlights
MHC Shareholding pattern & Key Highlights IFC - Factsheet* – MHC Washington Shareholding 3.1% Others, Healthcare facilities 8 4.9% Beds 1,100 Tertiary Beds 900 Warburg Pincus, 16.4% Revenue INR 190 Cr. EBITDA Margin (Q1FY12**) 5.9% Average Revenue/ INR 23,666 Max India Occupied Bed Day Ltd, 75.6% Av
Slide 54: MHC - Accreditations and Awards
MHC – Accreditations and Awards FICCI Healthcare Excellence Awards (2010) ISO 14001:2004 at Pitampura ISO 9001:2008 Recertification at Max Heart & Vascular Institute, Noida, Pitampura, Panchsheel Park &Home Office First in North India to get NABH for MHVI & MSSH BL Shah National Award for Economics
Slide 55: Max Healthcare
Max Healthcare* Quarter Ended Key Business Drivers Unit Y-o-Y June -11 June-10 Growth a) Revenue (Gross) Rs. Crore Inpatient Revenue 136 115 18% Day Care Revenue 6 5 9% Outpatient Revenue 48 39 24% Total 190 159 19% b) Profitability Contribution Margin Rs. Crore 112 92 22% Contribution (%) % 59.1% 5
Slide 56: MHC - Total Project Cost
MHC – Total Project Cost Max India Current – Rs. 220 Cr Equity Future – Rs. 150 Cr Capital Warburg Pincus – Rs. 140 Cr IFC, Washington – Rs. 50 Cr Rs. 580 Crore Other Foreign Investors – Rs. 20 Cr Right Issue – To be tied up Preference Capital IFC, Washington – 250 Cr Project Cost* R
Slide 57: MHC Tertiary Care Facility, Saket
MHC Tertiary Care Facility, Saket [South Delhi] MAX DEVKI DEVI HEART & VASCULAR MAX SUPER SPECIALITY HOSPITAL INSTITUTE (West) (East & South) (May 2006) ( East :- December 2004, South :- February 2010) 184 beds (including 71 critical care beds) Patient beds – (East ; 207 beds) & (South ; 83 beds
Slide 58: MHC Tertiary Care Facility, Patparganj
MHC Tertiary Care Facility, Patparganj [East Delhi] PATPARGANJ BALAJI HOSPITAL (PPG I ) PATPARGANJ SUPER SPECIALITY HOSPITAL (PPG II) (May 2005) (Feb 2010) 154 inpatient beds 259 inpatient beds 3 OTs 7 OTs, 1 Cardiac Catheterization Labs General Surgery & MAS Invasive & Non Invasive Card
Slide 59: MHC Secondary Care Facility
MHC Secondary Care Facility [ Suburb of Delhi ] GURGAON (July 2007) PITAMPURA (February 2002) NOIDA (August 2002) (North Delhi) 80 inpatient beds 90 inpatient beds 32 inpatient beds 3 OTs 2 OTs Orthopedics & Trauma 2 OTs Ophthalmology (anterior and posterior) Lithotripsy Mother a
Slide 60: MHC Speciality Centres - Panchsheel
MHC Speciality Centres – Panchsheel [South Delhi] OPTHALMOLOGY AND DENTAL CARE SPECIALIST CONSULTS AND (November 2005) HIGH-END DIAGNOSTICS (August 2006) Lasik, OPD and diagnostics Dental – 5 chambers GP and specialist consults Diagnostics Support services and offices Neurology (EEG and
Slide 61: MSF - Performance Snapshot
MSF – Performance Snapshot Quarter Ended Key Business Drivers Unit Y-o-Y Growth Jun 11 Jun 10 a) Sales Quantity – BOPP Tons 12,847 7,269 77% b) Revenue* Rs. Crore 179 92 95% c) Profitability: Contribution Margin** Rs. Crore 57 32 79% % 32% 35% EBITDA Rs. Crore 21 11 89% % 11% 12% PBT Rs. Crore 11 5
Slide 62: Disclaimer
Disclaimer This presentation has been prepared by Max India Limited (the ―Company‖). No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in the presentation. The past performan
Slide 63: Max India Ltd. contact details
MAX INDIA LTD. Max House, Okhla, New Delhi – 110 020 Phone: +91 11 26933601-10 Fax: +91 11 26933619 Website: www.maxindia.com 63