Max India Ltd · NSE:MAXIND
Max India — Investor Presentation (June 2014)
58 slides from Max India's investor presentation, June 2014
Slide 1: Max India Limited Investor Presentation June 2014
Max India Limited IInvestor t Presentation P t ti June, 2014 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 Group Vision
Max Group Vision “To be the most admired corporate for service excellence” • Positive social impact • Culture of Service Sevabhav • Helpfulness • Mindfulness • Expertise • Entrepreneurship Excellence • Dependability • Business performance • Transparency • Respect Credibility • Integrity • Governance
Slide 4: Our Businesses
Our Businesses M lti b i Multi-business t corporate F d on people Focused l and d service i “ IN THE BUSINESS OF LIFE ” Life Insurance Healthcare Health Insurance Senior Living Protecting Life Caring for Life Enhancing Life 100% Owned; 74:26 JV* with Mitsui 74:26 JV* with Life 74:26 JV with BUPA Con
Slide 5: A unique investment opportunity and a resilient business model
A unique investment opportunity and a resilient business model 1 INR 116 billion+ Revenues*.. 5 Mn+ Customers..15,000 Employees.. 5,000^ Agents.. 2,000+ Doctors 2 Strong growth trajectory even in challenging times; a resilient & diversified business model 3 Steady revenue growth and cost rationaliza
Slide 6: Growth potential recognized by the market, high pedigree investor base
Growth potential recognized by the market…. high pedigree investor base Shareholding Pattern as on March 31, 2014 Others 8.4% 8 4% Mutual • Reliance MF Funds • Temasek 11.0% Shareholding • Fidelity Promoter Concentrated • Norges 39.5% with Marquee • Jupiter • Matthews Investors • New York Life FII (
Slide 7: Consistent track record of strong growth across businesses
Consistent track record of strong growth across businesses with the group turning strong profits Rs Cr Cr. Rs Cr. Operating Revenue Trend 10000 FY 10 FY 11 FY 12 FY 13 FY 14 8000 Operating 5,574 6,668 7,648 8,180 9,139 Revenue 6000 Investment and 2,087 1,223 914 2,444 2,544 8180 Other Income 4000 76
Slide 8: Max Life Insurance Company (Max Life)
MAX LIFE INSURANCE COMPANY (Max Life) www.maxnewyorklife.com 8
Slide 9: 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 Max Life’s pro
Slide 10: Par products & ULIPs fill the void left by withdrawn non-par products
Par products & ULIPs fill the void left by withdrawn non-par products EEvolution l ti off product d t MiMix ffor ttop players over the last 2 quarters Par Non‐Par ULIP Apr‐Sep'13 Jan‐Mar'14 ICICI Pru P 8% 32% 60% 26% 4% 70% 1st Disruption: 2nd Disruption: SBI Life 27% 35% 38% 46% 5% 49% HDFC Life 40
Slide 11: Max Life performs better than private industry on agency efficiency
Max Life continues to perform better than the private industry on agency efficiency parameters Average Branch Productivity Max Lif M Life’s ’ Max Life M Lif continued i d to lead l d In Rs. Lakhs per month Apr-Dec'12 Apr-Dec'13 Performance productivity parameters (both agent productivity and branch
Slide 12: Max Life well positioned for the transformation
Max Life well positioned for the transformation Agency base at 43,000 agents Highly productive agency FY 14 Average case size at ~Rs. 29,000 with average case rate ~0.41 model and best in class training Need based insurance sales 400+ trainers on board Comprehensive product Product mix for
Slide 13: Track record of strong performance
Track record of strong performance New Business Growth – Adjusted j FYP 1 and Renewal premium p and conservation ratio 2 AUM 1800 30000 6000 90% 1724 1769 1750 25000 5000 1700 20458 82% 83% 81% 81% 78% 80% 1650 24716 20000 4000 17215 1595 1584 1600 13836 15000 3000 60% 1550 10,121 1506 1513 1500 100
Slide 14: Max Healthcare (MHC)
MAX HEALTHCARE (MHC) www.maxhealthcare.in 14
Slide 15: 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 16: Increasing prevalence and propensity are key market drivers
Increasing prevalence and propensity are key market drivers Growingg 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 17: MHC unique model well positioned to deliver high quality of care
MHC, with its unique model* is well positioned to deliver high quality of care to patients Quaternary /Tertiary Care - Max Super Speciality Hospitals – Saket •Organ Transplant - Max Super Speciality Hospital – Patparganj •Neurosciences - Max Super Speciality Hospital – Mohali •Oncology •Cardiac Care
Slide 18: Extensive focus on service excellence - a key strength for MHC
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 19: 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 1500 65.0% occupied bed day* 1350 1600 30000 1200 63.0% 23585 25126 1400 26208 25000 1050 61.2% 20431 21558 61.7% 61.0% 1200 19433 900 20000 59.6% 1000 750 59.2% 600 5
Slide 20: Max Bupa Health Insurance (Max Bupa)
MAX BUPA HEALTH INSURANCE (Max Bupa) www.maxbupa.in 20
Slide 21: A symbiotic partnership in the health insurance space
A symbiotic partnership in the health insurance space • India’s leading conglomerate • Gl Global b lH Health lth IInsurance provider id • Successful track record of with market leadership in UK, building businesses Spain & Australia • Expertise in life insurance, • 12 million customers in over 190 h
Slide 22: Industry is poised for an exponential growth
Industry is poised for an exponential growth Key drivers of growth Indian Health Insurance Market (Rs. In Billion) 464 ▪ Increase in affordability 500 GWP (Rs. in Billion) 450 404 351 – Increasing affordability with rise 400 350 266 305 iin iincome llevels l and dhhealthcare lth 300 192 231 160 spen
Slide 23: Max Bupa to capitalise on opportunity through innovative product and service
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 p processing; No Cashless processing; automat
Slide 24: Extensive focus on key growth levers to maximize long-term value
Extensive focus on key growth levers to maximize long-term value Leveraging Max India and BUPA capabilities • Max India - strong understanding of Indian Insurance landscape, Factsheet* – Max Bupa learning's from Max Life’s success and leverage synergies with Max Life and MHC • BUPA – Product design,
Slide 25: Max Speciality Films (MSF)
MAX SPECIALITY FILMS (MSF) www.maxspecialityfilms.com 25
Slide 26: MSF uniquely positioned to create value
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 Ma Speciality Max Specialit Films is much
Slide 27: Visibility in Top Brands
Visibility in Top Brands You will Find MSF films in… 27
Slide 28: Max Neeman Medical International (MNMI)
MAX NEEMAN MEDICAL INTERNATIONAL (MNMI) www.neeman-medical.com 28
Slide 29: 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 30: Max India Foundation (MIF)
MAX INDIA FOUNDATION (MIF) www.maxindiafoundation.org 30
Slide 31: Max India Foundation
MAX INDIA FOUNDATION Making a difference… to life Max India Foundation • Corporate Social Responsibility (CSR) Arm of the Max Factsheet* – MIF India Group focused on providing quality healthcare to the underprivileged, underprivileged facilitating awareness of health Locations 415 related issues, an
Slide 32: Thank You
Thank You 32
Slide 33: Consolidated Financial Snapshot (Q4 & FY14)
Consolidated Financial Snapshot (Q4 & FY14) (Rs. Cr.) Particulars Quarter ended Y-o-Y Year ended Y-o-Y Mar-14 Mar-13 Growth Mar-14 Mar-13* Growth Total Revenue 3 740 3,740 2 468 2,468 52% 11 683 11,683 10 624 10,624 10% Operating Revenue 2,931 2,470 19% 9,139 8,180 12% EBITDA 121 87 39% 506 1,213 -5
Slide 34: 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 trusted life insurance specialist Customer centric Part of top quartile new Life Insurance Companies Financially responsible and strong Nati
Slide 35: Protection Oriented, Longer Tenor Life Insurance
Protection Oriented, Longer Tenor Life Insurance PRODUCT TYPE PROPORTION OF Tenure Age of Insured POLICIES (%, (% bby (Y (Years) ) (Y (Years) ) number) WHOLE LIFE 17.9 44 32 ENDOWMENT 16 34 34.9 TERM 1.5 26 34 DEFERRED 0.1 ANNUITY 18 40 MONEY BACK 6.4 15 30 UNIT LINKED 37.0 15 36 HEALTH 0.5 05 14 38
Slide 36: Market Position: Life Insurance Sales
Market Position: Life Insurance Sales Individual New Business Premium ((Rs. Cr)) S No. S. N C Company Premium Adjusted for 10% single premium FY14 FY13 Growth (%) Market Share 1 ICICI Prudential 3,253 3,310 ‐2% 18.9% 2 SBI Life 2 811 2,811 2 388 2,388 18% 16 3% 16.3% 3 HDFC Life 2,374 3,131 ‐24% 13.
Slide 37: Max Life - Embedded Value
Max Life – Embedded Value Amount in Rs. Cr. March 31, 2014 379* 34 79 309 Operating Variance* Non 240 Recurring 3,953 Variance Unwind of 3,756 Discount** SH dividend Value of New payouts Business 2,021 1,858 Implied NBM*** is Operating RoEV of 15.6% 13.4% on APE**** Headline RoEV of 13.5% (14% in 20
Slide 38: Max Life - Key Assumptions to Embedded Value
Max Life – Key Assumptions to Embedded Value Economic Assumptions Cash/Money Market/TB 8.5% G Secs 8.8% % Corporate Bonds 9.6% Equities 13.00% Unit Linked Fund Growth Rate 10.50% Interest Rate on Non-Unit Reserves 8.15% Inflation 6.50% Risk Discount Rate 13.00% Service Tax 12.36% 14.1625% (12.5% + 1
Slide 39: Max Life - Sensitivities to Embedded Value
Max Life – Sensitivities to Embedded Value Value of New Base Case (% change*) Value of In force Business Mortality +10% -2.20% -5.20% Mortality -10% 2.20% 5.20% Lapses +10% -3.90% -6.50% Lapses -10% 4.20% 7.20% p Maintenance Expenses +10% -1.10% -1.80% Maintenance Expenses -10% 1.10% 1.80% RDR +100b
Slide 40: Max Life Embedded Value - Basis of Preparation
Max Life Embedded Value – Basis of Preparation Max Life’s Embedded Value is guided by the European Embedded Value (EEV) principles and is consistent with the reporting of traditional embedded values on a deterministic basis Allowance for risk has been made through the use of a single risk discount r
Slide 41: Track record of strong performance
Track record of strong performance New Business Growth – Adjusted j FYP 1 and Renewal premium p and conservation ratio 2 AUM 1800 30000 6000 90% 1724 1769 1750 25000 5000 1700 20458 82% 83% 81% 81% 78% 80% 1650 24716 20000 4000 17215 1595 1584 1600 13836 15000 3000 60% 1550 10,121 1506 1513 1500 100
Slide 42: Max Life Insurance
Max Life Insurance Key Business Drivers Unit Quarter Ended Y‐o‐Y Y Y Year Ended Y‐o‐Y Growth Growth Mar'14 Mar'13 Mar'14 Mar'13 a) Gross written premium income Rs. Crore First year premium 623 507 23% 1 787 1,787 1 529 1,529 17% Renewal premium 1,651 1,464 13% 5,017 4,739 6% Single premium 159 108 4
Slide 43: Accreditations and Awards
Accreditations and Awards Business ASQ ITEA Bronze award; CII Commendation for Business Excellence (2008, 2009 & 2010) Excellence CII 2nd Prize in Project of the Year and Quality Brandd Excellence B E ll Award A d andd recognition i i as Superbrand S b d (2010-11,2013-14), (2010 11 2013 14) AIMA L L
Slide 44: MHC - Vision / Mission
MHC – Vision / Mission K Diff Key Differentiators ti t PASSION Build B ild T Trustt 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 co
Slide 45: MHC - Key Physicians
MHC – Key Physicians Padma Shri Dr. Rustom Phiroze Soonawala Eminent and Internationally renowned Obstetrician & Gynaecologist. Gynaecologist MD, FRCS, FRCOG Former President of the Federation of Obstetricians and Gynaecologists Chairman, Obstetrics & Gynaecology Padma Shri Dr. Pradeep K Chowbey
Slide 46: MHC - Accreditations and Awards
MHC – Accreditations and Awards NABH / NABL Accreditation ISO 14001:2004 & 18001:2007 at Patparganj , Pitampura & Shalimar Bagh ISO 9001:2008 at Max Heart & Vascular Institute, Patparganj, Noida, Pitampura, Shalimar Bagh, Panchsheel Park & Home Office. National Standards: Mark of Excellence : 636 as
Slide 47: 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 48: 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 49: MHC Tertiary Care Facility, Mohali and Bhatinda
MHC Tertiary Care Facility [ North India] Mohali Bhatinda (September 2011) (September 2011) 142 inpatient beds and 45 Critical Care Beds 141 inpatient beds and 42 Critical Care Beds 5 OTs 5 OTs Oncology Oncology Cardiac Sciences Cardiac Sciences Orthopedics Orthopedics Neurosci
Slide 50: MHC Tertiary Care Facility, Shalimar Bagh and Dehradun
MHC Tertiary Care Facility [ North India] Dehradun Shalimar Bagh (May 2012) (November 2011) 166 inpatient beds and 39 Critical Care 196 inpatient beds and 80 Critical Care 4OTs 7 OTs Neurosciences Cardiology , Cathlab and Oncology Cardiac Care Orthopedics and Neuroscience Orthopedi
Slide 51: 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 52: MHC Speciality Centres - Panchsheel
MHC Speciality Centres – Panchsheel [South Delhi] OPTHALMOLOGY AND DENTAL CARE SPECIALIST CONSULTS AND (November 2005) HIGH END DIAGNOSTICS HIGH-END (August 2006) Lasik, OPD and diagnostics Dental – 5 chambers GP and specialist consults Diagnostics Support services and offices Neurology
Slide 53: MHC - Investment Pattern
MHC –Investment Pattern Max India – Rs. Rs 360 Cr E it Equity Life healthcare** – Rs. 428 Cr Capital IFC, Washington – Rs. 50 Cr Other Foreign Investors – Rs. 20 Cr Rs. 865 Crore ESOPs – Rs. 6 Cr Preference Capital p IFC, Washington – Rs. 125Cr Project Cost* Rs. 125 Crore Rs. 1,756 Crore
Slide 54: Max Healthcare - Financials
Max Healthcare* – Financials Quarter Ended Y Year d d ended Key Business Drivers Unit Y-o-Y Y-o-Y Mar-14 Mar-13 Growth Mar-14 Mar-13 Growth a) Revenue (Gross) Rs. Crore Inpatient Revenue 279 228 22% 1046 833 26% Day Care Revenue 14 10 36% 50 38 30% Outpatient Revenue 84 72 17% 307 267 15% Other Oper
Slide 55: Max Bupa Health Insurance
Max Bupa Health Insurance Quarter Ended Year ended Key Business Drivers Unit Y-o-Y Y-o-Y Mar-14 Mar-13 Growth Mar-14 Mar-13 Growth a) Gross written premium income Rs. Crore First year premium 50 42 20% 163 128 27% Renewal premium 52 32 61% 146 79 84% Total 102 74 38% 309 207 49% b) Net Earned Premiu
Slide 56: Max Specialty Films
Max Specialty Films Key Business Drivers Unit Quarter Ended Y-o-Y Year ended Y-o-Y Mar-14 Mar-13 Growth Mar-14 Mar-13 Growth a)) Sales Q Quantityy – BOPP Tons 11,222 12,458 ‐10% 10% 46,354 51,220 ‐10% 10% b) Revenue Rs. Cr. 195 176 11% 746 725 3% c) Profitability: Contribution Margin Rs Cr Rs. Cr. 3
Slide 57: Disclaimer
Disclaimer This p presentation has been p prepared p by y Max India Limited ((the “Company”). p y ) No representation p or warranty, y, express p or implied, p , is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in the presen
Slide 58: Max India Ltd.
MAX INDIA LTD. Max House, Okhla, New Delhi – 110 020 Phone: +91 11 26933601-10 Fax: +91 11 26933619 Website: www www.maxindia.com maxindia com 58