I
Investor
t Presentation
P
t ti
August 2012
Strictly Private and Confidential
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1
Key highlights
 Leading Private Sector Healthcare Services Provider in India
 Attractive Industry Opportunity
 Clinical Excellence and Strong Brand Value
 Strong Operating and Financial Track Record
 Well Planned Strategy to Deliver the Next Phase of Growth
 Experienced Management Team
2
Business snapshot
Leading private sector healthcare services provider in India
Consolidated Financials(1) (Rs. mn)
Business Overview
•
•
•
Promoted by Dr. Prathap C. Reddy (Padma Vibhushan, 2010)
Key Businesses Includes :
–
Healthcare Services: Operating one of the largest hospital networks in Asia
with 5,908 owned and 2,038 managed beds across 36 owned and 13
managed hospitals as on June 30, 2012

Includes tertiary, super specialty and secondary care hospitals

7 hospitals with Joint Commission International (JCI) accreditation

Team of 5,034 doctors including employed and “fee for service” doctors,
8,075 nurses and 2,802 paramedical personnel as on June 30, 2012
–
Standalone Pharmacies: Large network of pharmacies in India with 1,357
outlets across 20 states as of June 30, 2012
–
Other Businesses:
• Comprises of Clinics, Health Insurance (JV (10.45%) with European
Insurer Munich Health Holding AG), healthcare project and consultancy
services, healthcare BPO, health education, skill development programs,
telemedicine and research
A Typical Day at Apollo consists of approximately 800 admissions,
admissions 7,300
7 300
outpatient volumes, 200 critical care cases, 140 key cardiac procedures, 60 neuro
surgeries, 600 dialyses and 40,000 laboratory tests
•
Shareholding(2): Promoters (32.8%), FIIs & FCBs (52.6%), MF/FI/IC (2.4%),
Others (12.2%)
•
(3) Debt of 7,979
Market capitalization of Rs
Rs. 87,000
87 000 mn(3),
7 979 mn and Debt to Equity
ratio of 0.24x
(1) All financial are for fiscal year (FY) ended March 31.
(2) As on 30th June 2012
(3) As on 20th August 2012
3 Source: Company audited financials and Q4FY12 Earnings Update.
Gross Revenue
YoY Growth
EBITDA
EBITDA Margin
Profit After Tax
((PAT))
PAT Margin
Net Worth
Total Loans
Cash and Cash
Equivalents
FY09
16 142
16,142
32.7%
2,274
14.1%
FY10
20 265
20,265
25.5%
3,013
14.9%
FY11
26 054
26,054
28.6%
4,190
16.1%
FY12
31 475
31,475
20.8%
5,131
16.3%
1,025
1,376
1,839
2,194
6.3%
14,954
6,706
6.8%
16,776
9,132
7.1%
19,238
9,585
7.0%
25,194
8,183
2,930
3,117
2,664
3,588
Segment Performance (Consolidated) (FY12)
Gross Revenue
Standalo ne
P harmacy
a acy
27%
Specialty Mix
Others
3%
Cardiology
26%
Others
35%
Healthcare services
70%
General
Surgery
4%
Transplants
3%
Orthopaedic
12%
Oncology
8%
Neurology
12%
Evolution
Business Evolution
1983–1988
Apollo Hospital, Chennai
Apollo Health City,
Hyderabad
1989 –2000
2001–2004
Indraprastha Apollo
Hospitals Delhi
Hospitals,
Apollo Gleneagles,
Kolkata
Apollo Specialty
Hospital, Chennai
Hospitals in Mysore,
Ahmedabad, Bilaspur
Apollo Standalone
Pharmacy
2005–2010
2011–2015
Imperial Hospital, Bangalore
2 REACH Hospitals, and
hospitals in Bhubaneswar,
Secunderabad, Mauritius,
Lavasa, Dhaka, Kakinada
Plan to add 3,140
beds by FY15
Apollo Munich Health
Insurance
Apollo Health Street
Pillars of success
Clinical
Excellence
 7 JCI accredited hospitals
 5 NABH accredited hospitals
 Outcomes benchmarked with worldclass hospitals globally
 Strong, long term relationship with
Doctors and medical professionals
4
Technological
Excellence
 Continue to bring world-class
world class
technology to our hospitals - 320
Slice CT scanner, G4 CyberKnife ®
Robotic Radiosurgery system,
Novalis TxTM Radiotherapy and
Radiosurgery system, 64 slice PETCT scan system, Digital
mammography with tomosysnthesis
3D system
Care,
Compassion
and
Commitment
 Follows value of TLC - ‘Tender
Tender
Loving Care’ for our patients
Cost
Benefit
 Commitment to our employees
 Committed to world-class
world class care at
costs significantly lower than
international benchmarks
 Commitment to medical education
and research
 Continuous improvement in asset
utilization and operating efficiencies
Pan India presence
Apollo is the leading player in the Indian hospitals segment by geographic presence as well as
business span and breadth of services offered.
Leading Hospital Players in India
Details of Beds under operation
Total Capacity Operational Beds
(2)
Multiple
Regions
# of Beds: 6,881
# of Hospitals: 51
(1)
# of Beds: 7,946
# of Hospitals: 49
CARE
(3)
Hospitals
# of Beds: 1,600
# of Hospitals: 12
Manipal
Hospitals (4)
Single
e
Region
Sin
ngle
Sttate
Geograph
hic Presence
Pan
India
Fortis
Hospitals
# of Beds: 4,900
# of Hospitals: 15
Sterling (5)
Hospitals
# of Beds: 1,027
,
# of Hospitals: 6
MAX
Healthcare(6)
Business Span and Breadth of Services
5
Source:
(1) Company Earnings Release. Figures as of June 30, 2012.
((2)) Fortis corporate
p
p
presentation as of September
p
2011. Excludes hospitals
p
and beds as p
part of ‘Projects’.
j
(3) Care Hospitals website. Information retrieved on June 22, 2012.
(4) Manipal Hospitals website. Information retrieved on June 22, 2012.
(5) Sterling Hospitals website. Information retrieved on June 23, 2011.
(6) Max India investor presentation as of August 2011, publicly available on Max India Ltd.’s website.
(7) The number of beds for FY90, FY95, FY00 and FY05 are approximate figures.
Note: Bubble size denotes no. of beds (owned + managed). The Company has not independently
verified the data presented on this slide, except for data relating to the Company.
No. of Hospitals
5,908
2,038
7,946
5,418
N.A
N.A
36
13
49
1,205
967
510
801
297
320
1,608
200
5,908
1,134
930
510
647
268
250
1,479
200
5,418
9
7
2
2
1
2
12
1
36
3,959
1,011
938
5,908
3,795
884
739
5,418
23
7
6
36
Bed Growth(7)7,984
# of Beds: 1,100
# of Hospitals: 8
Narrow
Category Wise
Owned
Managed
Grand Total
Cluster Wise (Owned)
Chennai
Hyderabad
Kolkata
Delhi
Bangalore
Ahmedabad
Other India
International
Grand Total
Maturity Wise (Owned)
>5 years
3–5 years
1–3 years
Grand Total
(8)
8,717
8,276
2 875
2,875
2 388
2,388
5,376
5,842
5,888
FY05
FY10
Owned Managed
FY11
FY12
O
Owned
d Beds
B d CAGR (FY05
(FY05-12)
12) : 10
10.1%
1%
2,608
4,000
Wide
300
750
FY90
FY95
1,500
1,500
FY00
(8) Beds as on 30th June 2012
1,000
3,000
Clinical excellence and quality healthcare services
Focus on Excellence

Strong, long standing relationship with doctors and
medical professionals

Focus on Key Specializations & Centers of Excellence (CONECT) (1)
with an objective to set benchmark standards in clinical outcomes
– Aim to gain significant market share in specialized acute and
tertiary healthcare services
– Benchmarking clinical outcomes against the world’s best centers

Implemented clinical governance tools such as Apollo Clinical
Excellence 25 (“ACE @ 25”) and RACE 25.

Dedicated
D
di t d tteam tto monitor
it ttechnological
h l i l iinnovation
ti and
d medical
di l
advances to keep abreast of local innovations in global healthcare
Technological Excellence

First to launch G4 Cyberknife® Robotic Radiosurgery System in India

First to launch 320 slice computed tomography (“CT”) scanner in India

First to install 64 slice positron emission tomography-computed
tomography (“PET-CT”) scan system in India

Installed Novalis Tx
Tx™ Radiotherapy and Radiosurgery system at
Hyderabad, New Delhi and Kolkata

Installed South Asia's first-of-its-kind, full-field digital mammography
with tomosynthesis (3D) system

Da Vinci Si’ - the most advanced form of minimally-invasive robotic
surgery that ensures greater precision and accuracy and leads to
faster recovery and reduced hospital stay.
6
(1) Cardiology, Orthopedics, Neurosciences, Emergency, Cancer, Transplant.
Strong Brand Value
JCI Accreditation for 7 hospitals- Bangalore,
Chennai, Delhi, Dhaka, Hyderabad, Kolkata and
Ludhiana
Best Multi-specialty Hospital In India (2011):
Apollo Hospitals Chennai.
Ahmedabad, Delhi, Kolkata & Hyderabad hospitals
ranked No. 1 Multi specialty hospital in their cities
“India’s Most Preferred Hospital” - Viewer’s
choice award (2010)
Dr. Prathap C Reddy, Founder and Chairman, was
awarded the “ Lifetime Achievement Award” at
the FICCI healthcare Excellence Awards 2011.
FICCI also conferred the Best Private Sector
Hospital award to Apollo Hospitals
Apollo Health City Hyderabad was recognized as
the “ Best Medical Tourism Facility for 20092010 by the Ministry of Tourism – Government of
I di
India
Dun & Bradstreet has ranked Apollo Hospitals
231st as per income and 227th as per Net profits
under India’s Top 500 Companies 2011.
Attractive industry opportunity
Demand for healthcare services in India is expected to rise owing to favorable demographics. Private sector
players are well-positioned to leverage this opportunity given low contribution of government spending.
Healthcare Expenditure Composition(1) (%) (2009)
Healthcare Expenditure (as % of GDP)(1) (2009)
India is an under-penetrated healthcare market
Per Capita expenditure
Spending driven by out of pocket component
(Rs.)
398,000
18%
171,900
49,500
46,050
10%
9%
9%
17,350
6,200
59%
60%
30%
21%
5%
16%
4%
3%
US
UK
Global
Brazil
China
India
Government
Spending
Out of Pocket
Expense
Private Prepaid
Expense
Global
Beds per 10,000 People (2009)(1)
Others
India
Large investments are required (Rs. 6.4 trillion) by FY13 to achieve
global bed density benchmarks to meet the growing demand for
30
healthcare services
42
30
6%
Investment Requirements: Bed Density and Funds(2)
India lags behind other developed and emerging economies in
healthcare infrastructure
33
5%
30
64
6.4
24
15
9
9
1.7
China
UK
US
Global
Source:
(1) WHO – World Health Statistics 2012.
(2) CRISIL Research hospitals Annual Review – November 2010.
Exchange rate of 1 US$ = Rs. 50,
7
Brazil
India
2008
By 2013
By 2013
Approximate Bed Density
Investment Requirement by 2013
Beds / 10,000 people
Rs. trillion
Attractive industry opportunity (cont’d)
In-patient market and incidence of lifestyle diseases are on the rise.
rise
In-patient / Out-patient Market Size(1) (Rs. bn)
No of Hospitalized Cases (mn) and In-patient Market(1) (Rs. bn)
Patient volumes and spends are expected to grow rapidly,
with the larger contribution coming from in
in-patients
patients
Increasing incidence of lifestyle diseases; estimated to contribute
48% of in-patient
in patient revenues by 2013E
2013E, up from 13
13.8%
8% in 2008
In-patient
Market size
In-patient CAGR (2008 - 18) – 14%
Out-patient CAGR (2008 - 18) – 8%
2,977
4,950
53%
61%
6
%
65%
47%
39%
2008
Market size
CAGR (2008-18)
No. of Case
es
(mm)
1,690
35%
2013P
Out-patient
201
509 1,030
18%
42
4.2
Cardiac
83
51
8
Oncology
32
FY10
Diabetes
2013P
2018P
Medical Tourism (3)
66
FY09
1.2
2008
115
FY08
3.4
2.3
2.0
Medical tourism is a burgeoning industry in India
Ailments (US$)
Heart Surgery
FY07
163
19%
3.1
2.9
2018P
Increasing insurance premiums driven by increasing awareness
of healthcare and rising income levels
FY06
16%
8.3
In-patient
Source:
(1) CRISIL Research hospitals Annual Review – August 2009.
(2) IRDA Annual Report 2011.
(3) Source: CRISIL Research.
(4) Source: ASSOCHAM.
79
29
5.2
Health Insurance Premiums(2) (Rs. bn)
22
274 519
118
FY11
US
UK
Thailand
Singapore
India
100,000
41,726
14,250
15,312
4,500
Bone Marrow Transplant
250 000
250,000
292 470
292,470
62 500
62,500
150 000
150,000
30 000
30,000
Liver Transplant
300,000
200,000
75,000
140,000
45,000
Knee Replacement
48,000
50,109
8,000
25,000
6,000

India is competitive in healthcare costs as compared to the
developed countries and other nations in Asia

By 2015, India likely to see 32 lakh medical tourists annually as
compared to the current number of 8.5 lakh(4)
Robust financials
Consistent improvement in financial performance across hospitals (mature and new), as well as
across businesses (hospitals and standalone pharmacies).
Total Consolidated Revenue (1) (Rs. mn)
Performance Highlights
 Healthcare services: Improvement in operating
metrics
ti
– Strong continued revenue growth in mature clusters
– New Hospitals(3) – driving substantial revenue growth
(77% in-patient and 65% out-patient) – through quick
ramp up
 Standalone Pharmacies: Revenue growth and
margin improvement
– Standalone pharmacies reported a positive EBITDA for
each of the last two years FY11 and FY12
– All stores are in the growth phase with relatively mature
stores growing at a consistent rate with increasing
EBITDA margins
 improvement in first year store performance due to
better ramp
up and lower losses
ramp-up
Strong growth in revenue across businesses driven by strong
operating
p
g performance
p
Healthcare Services CAGR (FY08 – 12): 22%
26,054
20,265
16,142
12,164
1,996
3 322
3,322
10,058
12,673
FY08
FY09
9
8,575
6,583
4,817
15,193
FY10
Healthcare Services
22,222
19,081
FY11
Standalone Pharmacies
FY12
Others
EBITDA Margin (%) and Net Profit (2) Margin (%)
EBITDA margin has consistently improved while Net Profit
margin has stayed stable
15%
FY08
6%
16%
16%
15%
14%
6%
(1) Revenue is net of doctor fees.
((2)) Net profit
p
after minority
y interest and associates.
(3) New Hospitals include Bhubaneswar, Karaikudi, Karur and Karim Nagar
Source: Company audited financials.
31,475
Standalone Pharmacies CAGR (FY08 – 12): 44%
7%
FY09
FY10
EBITDA Margin
7%
FY11
Net Profit Margin
7%
FY12
Robust financials (cont’d)
Apollo is one of the few companies in India across capital-intensive industries to generate healthy
returns on capital employed in the business.
Return on Capital Employed#—Healthcare Services (%)*
Rapid Improvement in ROCE
19%
17%
1
ROCE
=
Efficiency
(Asset
Turnover)
2
X
Profitability
1
Efficient use of capital

Lower investment per bed

Strong project execution capabilities

Quick ramp up of new hospitals—increasing patient flow
2
9%
Reduced ALOS

Increasing ARPOB

Improving case mix

Strong financial position – Apollo has a healthy Balance Sheet
with a Debt/ Equity ratio of 0.33x as on March 31, 2012
FY09
FY10
FY11
FY12
Return on Capital Employed#—Consolidated (%)
Higher revenue and profitability

15%
14%
FY08
18%
FY08
10%
10%
FY09
FY10
13%
13%
FY11
FY12
Note: *Healthcare services includes owned hospitals, hospital-based pharmacies and consulting projects
and services.
#ROCE = EBIT / Capital Employed (excludes CWIP and investments in liquid mutual funds).
Source: Company audited financials.
10
Strong operating metrics
Continuous improvement in key operating metrics is helping drive revenues and profitability
profitability.
In-patient Admissions (’000) (1)
Bed Occupancy Rate (2) (%)
Continued in-patient volumes growth
265
281
235
211
190
FY08
FY09
FY10
FY11
FY12
Average
g Length
g of Stay
y (Days)
( y ) (4)
Reduction in ALOS
5.18
Operational Highlights
Consistent bed utilization
Operating
Beds
3,613
75.0%
3,930
76.0%
4,257
73.0%
FY08
FY09
FY10
4,767(3)
73.0%
FY11
FY08
FY09
FY10
FY11
FY12
(Rs
(Rs. / Day)
14,356
15 184
15,184
FY08
FY09
Note: All operating data for owned hospitals.
(1) Inpatients are patients admitted in the facility for more than 23 hours.
(2) Bed Occupancy Rate: Total Occupied Bed Days / Total Operating Bed Days. Represents % of
available hospital beds occupied by patients.
11
Average
g length
g of stay
y (ALOS)
(
) has
reduced across the portfolio
– Reduced in mature hospitals due to
advancement in treatments
– Increase in minimally-invasive
procedures

Average revenue per occupied bed
(ARPOB) has grown at a healthy CAGR
of 9.3% over the last three years
– Culmination of high occupancy, higher
tariffs, better case mix and decreasing
ALOS
– FY08-12 CAGR in core therapeutic
areas: Transplants (29%), Orthopedics
(16%), Neurosciences (16%),
Oncology (24%) and Cardiology (10%)
Average Revenue per Occupied Bed (5)
20,455
4.78

FY12
Increased ARPOB
4.79
Occupancy rates remain high
– Growth of in-patient volumes in line
with addition of beds
– New hospitals are ramping
up quickly
71.2%
5.15
4.84

5,153(3)
16,620
FY10
18,474
FY11
FY12
(3) Excludes our hospitals located outside India.
(4) ALOS represents average number of days patients stay in our hospitals.
(5) ARPOB: Total Hospital Revenue / Patient Days (Total Occupancy in Numbers (Average Daily
Census ) * No of days ) (Net of doctor fees).
Source: Company MIS reports.
Cluster wise operational performance
Apollo
p
has consistently
y delivered improvement
p
across various operational
p
parameters
p
over the past
p
few years, driving growth even in mature hospitals.
AHEL Standalone
Total (5)
Particulars
Q1 FY 12
Q1 FY 13
No. of Operating beds
5,006
5,218
Inpatient volume
66,357
74,819
230,463
260,905
Inpatient ALOS (days)
4.87
Bed Occupancy Rate (%)
Chennai cluster
Q1 FY 12
Q1 FY 13
1,162
1,130
12.8%
17,425
17,691
13.2%
73,747
83,489
4.70
4.65
71%
74%
Inpatient revenue (Rs mio)
NA
Outpatient revenue (Rs mio)
Outpatient volume
ARPOB (Rs /day)
(3)
(4)
Total Net Revenue (Rs mio) (4)

Grow th
yoy (%)
Hyderabad cluster
Q1 FY 12
Q1 FY 13
930
930
1.5%
10,642
11,804
13.2%
31,278
34,291
4.63
4.78
80%
80%
NA
1,599
1,879
NA
NA
449
19,870
21,457
NA
NA
8.0%
Grow th
yoy (%)
Others
Grow th
yoy (%)
(1)
Q1 FY 12
Q1 FY 13
1,164
1,299
10.9%
13,224
16,746
9.6%
37,061
44,250
4.44
5.66
60%
62%
17.5%
687
809
568
26.3%
166
25,301
29,852
18.0%
2,048
2,446
19.4%
Significant subs/ JVs/ associates
Grow th
yoy (%)
Q1 FY 12
Q1 FY 13
Grow th
yoy (%)
1,750
1,859
26.6%
25,066
28,578
14.0%
19.4%
88,377
98,875
11.9%
5.14
4.64
4.59
71%
73%
78%
77%
17.8%
627
843
34.5%
2,149
2,551
18.7%
168
0.8%
132
143
8.4%
432
477
10.4%
16,796
18,637
11.0%
10,083
11,447
13.5%
22,183
23,106
4.2%
853
976
14.5%
758
986
30.0%
2,581
3,028
17.3%
Chennai & Hyderabad clusters
 Chennai cluster witnessed growth in revenues driven by OP volumes, improvement in case mix and pricing.
 Revenue growth of 14
14.5%
5% in Hyderabad .Volume
Volume growth on focus COEs like Cardiology,
Cardiology Neurosciences , Gastroenterology and Oncology
Oncology.
 Focus on Increasing ARPOB through reduced ALOS, pricing and case-mix improvement.

Others cluster - driving substantial growth ( 30.0%) – focus on Inpatient growth (34.5%). 8.4% growth in OP Revenues driven by Volumes in Bhubaneswar, Madurai, Karur , Karaikudi & Karimnagar.
Good traction in Bhubaneswar with average occupancy at 70% (174 beds) .

Significant Subsidiary / JVs & Associates hospitals’ continued improving performance - revenue growth of 17.4%. Over 17% yoy growth in Kolkata and Ahmedabad.
Notes:
(1) Others include Madurai, Karur, Karaikudi, Mysore, Vizag, Pune, Karimnagar, Bilaspur and Bhubaneswar.
(2) Significant Hospital JVs/Subs//Associates are – Ahmedabad, Bangalore, Kolkata, Kakinada and Delhi (full revenues shown in table above).
(3) Outpatient volume represents New Registrations only. OP Volumes of Clinics have now been included in Chennai Cluster, Others and Significant Subs/JVs/Associates.
(4) Net Revenue is net of doctor fees and ARPOB calculated above does not include revenues from doctor fees.
(5) Revenues under the head “Total” have not been provided as Consolidated actual results will differ from Total due to proportionate consolidation.
* Inpatient volumes are based on discharges.
12 ** Previous year financial and operational numbers have been regrouped and reclassified wherever necessary to conform with current year classification and full year audited numbers.
(2)
Standalone Pharmacies: capturing the growth potential
India’s
India
s largest organized pharmacy retail chain with a network of 1,357
1 357 stores.
stores
Overview
•
Offers a wide range of medicines and surgical products, hospital
consumables and over-the-counter products
•
•
Asset light business model with an established track record
•
•
Introduced generic and in-house brands (Private Labels)
1,364
1,199
1,049
883
Presence in affluent centers such as Hyderabad, Chennai,
Bangalore, Pune, Ahmedabad and NCR regions
Consistent growth in standalone pharmacy revenue
–

Number of Standalone Pharmacies
617
FY08
Calibrated rollout: 165 stores opened in FY12, 150 in FY11
and 166 in FY10
–
Increased penetration of pri
private
ate label sales
–
Integrate supply chain network and optimize inventory levels
FY09
FY10
FY11
FY12
Financial Performance
Revenue (Rs. mn)
8,606
Emphasis on margin improvement
–
Mature cohort of pre-2007 stores have achieved 5.7%
EBITDA margins
g
in FY12
–
Positive overall EBITDA margin FY 11 and FY 12
6,614
4 817
4,817
3,322
1,996
FY08
Source: Company audited financials and MIS reports.
13
FY09
FY10
FY11
FY12
Operational performance: Standalone Pharmacy
Key Financials (INR mn)
Batch
Particulars
Upto FY07 Batch
No. of Stores
FY08 Batch
Total
Q1 FY12
311
Q1 FY13
291
YoY%
Revenue/Store
2.20
2.55
15.70%
EBITDA/Store
0.11
0.15
31.70%
EBITDA Margin %
5.1%
5.8%
No. of Stores
196
177
Revenue/Store
1.69
2.12
EBITDA/Store
0.02
0.07
EBITDA Margin %
1.1%
3.5%
No. of Stores
1,220
1,357
Revenue/Store
1.55
1.82
EBITDA/Store
0 02
0.02
0 05
0.05
EBITDA Margin %
1.2%
2.5%
129bps
1,897.6
2,476.6
30.50%
EBITDA
22.6
61.4
EBITDA Margin %
1.2%
2.5%
2,248.73
2,843.40
28.16
28.26
Total Revenues
Capital Employed (Rs. mn)
Capex (Rs. mn)
14
Key Comments
•
Standalone pharmacies continues its EBITDA
expansion trajectory on the back of buying
efficiencies and operating leverage.
71bps
•
EBITDA of Rs. 61.4 mio in Q1FY13.
25.54%
•
Gross stores added 26 and stores closed 33. No.
of stores as on 30th June 2012 is 1,357 .
•
LFL (Like-for-like) Revenue per store growth for
the pre FY2007 batch of stores is 15.7% (yoy) and
FY 2008 batch is 25.5% (yoy).
•
LFL EBITDA per store growth for the up to FY
2007 batch of stores is 31.7% (yoy) and EBITDA
margin improved by 71 bps to 5.8%.and EBITDA
margin for FY 2008 batch is 3.5% as compared to
1.1% in Q1FY13, an improvement of 238 bps.
238bps
17.39%
129bps
Q1 FY13: Financial Performance
Standalone Financials
Revenue
Operative Expens es
Employee Expenses
Administrative & Other Expenses
Total Expenses
EBITDA
margin (%)
Consolidated Financials ( Unaudited estimates)
Q1 FY 12
Q1 FY 13
yoy (%)
6410
7774
21.3%
3381
962
1008
5352
1059
16.5%
3997
1257
1215
6470
1304
16.8%
18.2%
30.7%
20.6%
20.9%
Q1 FY 12
Income from Operations
Add: Share of JVs
Total Revenues
251
1053
13.5%
Financial Expenses
Add Other Income
147
47
137
41
Profit Before Tax
759
957
26.1%
513
8.0%
697
9.0%
36.0%
97 b ps
17.0%
20210
17.6%
23958
ROCE (Annualized)
Capital Employed (1)
22.6%
14 b ps
•
Revenues of Rs. 7,774 mio, 21.3% yoy growth.
•
EBITDA at Rs. 1,304 mio, 23.2% yoy growth.
•
EBIT at Rs. 1,053 mio, 22.6% yoy growth.
•
PAT at Rs. 697 mio, 36.0% yoy growth.
•
RoCE at 17.6% as compared to 17.0% in spite of additional capital employed of Rs. 3,748
mio in new facilities in Hyderabad, Karaikudi and Karur.
15
6,787
8,256
21.6%
447
557
24.5%
7 234
7,234
8 813
8,813
21 8%
21.8%
1,194
1,480
24.0%
margin (%)
16.5%
16.8%
29 bps
545
787
44.2%
23.2%
26 b ps
200
859
13.4%
Profit After Tax
margin (%)
yoy (%)
EBITDA
Profit After Tax
Depreciation
EBIT
margin (%)
Q1 FY 13
(1) Capital employed for the calculation of ROCE does not include Capital Work in progress on new hospital
expansion projects of Rs. 3,086 mio for Q1FY13 and Rs. 2,418 mio for Q1FY12 & investments in mutual funds
and associates.
Total Debt
7,979
Cash & Cash equivalents (includes investment in liquid funds)
2,507
•
R
Revenue
growth
th off 21.8%
21 8% ffrom R
Rs. 7
7,234
234 mio
i iin Q1FY12 tto R
Rs. 8
8,813
813 mio
i iin Q1FY13
•
Consolidated EBITDA grew by 24.0% (margin expansion by 29 bps) aided by expansion in
Healthcare services EBITDA, improved EBITDA contribution by SAPs and reduction in
negative EBITDA in Apollo Munich Health Insurance.
•
Consolidated PAT grew 44.2% from Rs.545 mio in Q1FY12 to Rs. 787 mio in Q1FY13.
Previous year figures have been reworked/regrouped /rearranged and reclassified wherever necessary to conform
to the requirement of revised Schedule VI of the Companies Act 1956.
JVs include Ahmedabad-50%, Kolkata-50% ,PET CT - 50%, Apollo Munich – 10.45%,
Quintiles – 40%, Apollo Lavasa – 34.66% and Future Parking Pvt Ltd – 49%
Key strategies

Aim to ensure dominant bed share in key strategic markets – Chennai, Hyderabad, Delhi, Kolkata,
Ahmedabad, Mumbai and Bangalore

Leverage brand strength to become the dominant healthcare provider by providing additional
services in dominant clusters

Plan to add 15 hospitals and 3,140 owned beds by FY15

Expansion in tier II and tier III cities through REACH hospitals, garnering first mover advantage and
leveraging strong brand

Expansion through both Greenfield projects and acquisition of hospitals

Set benchmark standards in clinical outcomes in select acute and tertiary care services –
Cardiology, Oncology, Neurosciences, Critical Care, Orthopedics and Transplants

Aim to gain significant market share in each of the key specialties
Cost efficiencies
and focus on improving
key operating metrics

Improving average revenue per bed day through richer case mix

Higher operating efficiencies and asset utilizations

Higher patient turnover by reducing average length of stay
Improve performance in other
businesses

Focus on margin improvement in the standalone pharmacy business

Leverage brand value through investment in clinics, etc
Establish / strengthen
presence in key strategic
markets
Focus on owned
hospitals for expansion
and REACH initiative
Focus on Centers of
Excellence
16
Planned expansion
Well planned strategy to address growing demand for healthcare service delivery in existing markets,
new large markets and semi-urban markets.
Defined Expansion Plan for Owned Bed Capacity(1)
Total
Estim ate d
Project
Cost
No of Beds (Rs . m n)
Strategy for Expansion
AHEL’s
Share
of Cos t
–
Plans to add 15 hospitals from the current 36
–
Plans to add 3,140 beds to the current 5,908
CoD
Navi Mumbai
FY14
Super Specialty
350
3,500
3,500
Byculla, Mumbai
FY14
Super Specialty
300
1,400
1,400
Thane(1)
FY14
Super Specialty
250
2,200
550
900
7 100
7,100
5 450
5,450
30
100
100
200
700
700
–
337
83
60
740
740
Location
Focus on owned hospitals
(Rs. m n)
Type of
Hos pital
(3)

Mum bai Cluste r
Sub Total

3 pronged approach towards expansion
–

Che nnai Clus ter
Chennai-Main (Expansion)
FY13
Super Specialty
Ayanambakkam
FY13
REACH
MLCP
FY13
Women and Child
FY14
Super Specialty
Chennai (OMR)
FY14
Super Specialty
45
310
310
South Chennai
FY15
Super Specialty
350
2,940
2,940
685
5,127
4,873
Sub Total
FY14
REACH
125
520
520
Nellore
FY14
REACH
200
667
667
Trichy
FY13
REACH
200
655
655
525
1,842
1,842
Super Specialty
240
2,760
2,760
Sub Total

New hospitals in metros and large cities with no existing presence
– reaching to wider urban population
–
Expansion in tier II and tier III cities through REACH hospitals,
garnering first mover advantage and leveraging strong brand
FY15
Vizag
FY14
Super Specialty
300
1,150
1,150
Bangalore Ortho and Spine
FY13
Super Specialty
125
558
558
North Bangalore
FY14
Super Specialty
180
770
770
Bilaspur: Oncology Block((2))
FY13
Super Specialty
–
80
80
Indore
FY14
Super Specialty
185
668
668
Sub Total
1030
5,986
5,986
Total
3,140
20,055
18,151
17

Operational REACH hospitals in Karimnagar,
Karimnagar Karur
Karur, and
Karaikudi

Four REACH hospitals coming up in Ayanambakkam, Nellore,
Trichy and Nashik
Funding Plans
–
Othe rs
Patna Phase I
Become dominant healthcare provider in key locations
–
REACH
Nashik
Expansion of beds and facilities / units in existing clusters –
address increasing demand and focus on key specialties
Favorable leverage
g metrics p
provides significant
g
headroom to
raise capital

–
Debt to Equity ratio of 0.24x and Debt to EBITDA of 1.35x(4)
As at June 30, 2012 Apollo has already invested Rs.3,224 mn of
the Rs. 18,151 mn, its share of total capex
(1) Held through JVs. AHEL share of costs is lower than total estimated project cost since it excludes share of
JV partner.
t
(2) Refers to the expansion of the Oncology wing only.
(3) Expected date of completion.
(4) as on June 30, 2012.
Board of directors and key senior management team
Board Members
Dr. Prathap C.
Reddy
Dr. Preetha Reddy
Suneeta Reddy
Sangita Reddy
•
•
•
•
•
•
•
•
•
•
•
Shobana
Kamineni
Khairil Anuar
Abdullah
Abd
ll h
Michael
Fernandes
Sandeep Naik
N. Vaghul
T.K. Balaji
Deepak Vaidya
Other Independent
Di t
Directors
18
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Executive Chairman, Founder
(M.D, MBBS, FCCP, FICA and FRCS)
Conferred the Padma Vibhushan in 2010
Conferred the Padma Bhushan in 1991
Spent 28 years with Apollo Hospitals
Managing Director
On the Board since the year 1989
Joint Managing Director
On the Board since the year 2000
Executive Director (Operations), on the Board since 2000
Received “Young Manager of the year 1998” award from
y
Management
g
Association
Hyderabad
Was a member of the Prime Minister’s delegation to
Malaysia organized by the CII
Executive Director (Special Initiatives), on the Board
since 2010
Over 20 years of experience in the healthcare industry
Independent Director
On the Board since 2005
Alternate Director to Khairil Anuar Abdullah
Country head for India and also in charge of the healthcare
portfolio of Khazanah
Nominee of Apax Mauritius FDI One Ltd.
On the Board since 2009
Independent Director, on the Board since 2000
Conferred the Padma Bhushan in 2009
Independent Director, on the Board since 2001
Independent Director, on the Board since 2000
Chairman of the Audit committee
G Venkatraman, Habibullah Badsha, Rafeeque Ahamed
and
d Rajkumar
R jk
M
Menon
Key Senior Management Team
K. Padmanabhan
•
•
S. Premkumar
•
•
S. K.
Venkataraman
•
•
Krishnan
Akhileswaran
•
•
•
•
V. Satyanarayana
Reddy
•
Dr. K. Hariprasad
•
•
Dr. Rupali Basu
•
•
Jacob Jacob
•
•
•
Arvind
Sivaramakrishnan
•
•
Group President and has been with the company
since 1996
Responsible for business and strategic initiatives across
the group
Group Chief Executive Officer – Healthcare Services and
has jjoined the company
p y this yyear
Responsible for business, strategy and operations across
the group
Chief Strategy Officer and has been with the company
since 1991
Served as the Chief Financial Officer and Company
Secretary of the Company since 2002
Responsible for strategic initiatives across the group
Chief Financial Officer and has been with the Company
since 2010
Over 15 years of experience in the field of Finance
Responsible for the finance function of the Company and
its subsidiaries
Chief Executive Officer – Chennai Division and has been
with Company since 1989
Responsible for hospital operations of the Chennai Region
Chief Executive Officer – Central Division and has been
with the Company since 1999
R
Responsible
ibl ffor h
hospital
it l operations
ti
ffor th
the C
Central
t lR
Region
i
Chief Executive Officer – Eastern Region and has been
with the Company since 2008
Responsible for hospital operations of the Eastern Region
Chief People Officer of the Company
Responsible for people initiatives – over 12 years
of experience
Chief Information Officer of the Company
Responsible for driving IT initiatives and projects
Thank you
19