Max Healthcare
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Max India Limited Investor Presentation Disclaimer This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors listed in the management discussion and analysis section of our Annual Report. We do not undertake any responsibility to update any forward looking statements nor should this be constituted as a guidance of future performance. 1 Max India – An Introduction Max India Limited is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Life Insurance, Healthcare and Clinical Research. Max also maintains interests in Specialty Plastic Products for the packaging industry and Healthcare Staffing Core Others VISION MISSION “To be one of India’s Most Admired z Establish niche service businesses in Life Insurance, Healthcare and Clinical Research Corporates for Service Excellence” z Life Insurance and Healthcare……..convergence! z Rank amongst top 3 players in each niche z Partner with best-in-class world leaders z Create service excellence in all businesses www.maxindia.com BSE Scrip Code: 500271, NSE Ticker: Max, Bloomberg: Max IN 2 Max India – Life ….. Our Focus Protecting Life through Life Insurance www.maxnewyorklife.com Caring for Life through Healthcare www.maxhealthcare.in Improving Life through Clinical Research www.neeman-medical.com 3 Track record of successful international Business Partnerships…over last 20 years Pharmaceuticals Gist Brocades, The Netherlands Electronic Motorola, USA Component Distribution Avnet Inc, USA Mobile Telephony Hutchison Hutchison Telecommunication Ltd, Hong Kong Comsat Investment Inc Communication COMSAT Services Lockheed Martin Global Telecommunications, USA Schering AG, Germany Plating Chemicals ATOTECH Atotech Deutschland GmbH, Germany Medical Transcription Healthscribe Inc., USA 4 Max India – Key Financial Indicators z Consolidated revenue for FY 05 - 06 at $342 Million Revenue − Life Insurance revenue at $189 Million Up 96%. − Healthcare revenue at $31 Million Up 195%. z Consolidated cash generated from operations at $57 Million Profitability Up 395%. Investments z Group Assets Under Management at $304 Million Up 122%. z Max Telecom Ventures merges with Max India Ltd., post Reserves merger reserves of Max India at $205 Million. Share Price and Capitalization z Current share price is around Rs. 750 ($17). z Face value per share is Rs. 10 ($0.22) z Market capitalization is around $600 Million. 5 Max India – Balance Sheet Sources of Funds US$ Million Reserves – 205 Application of Funds Share Capital – 8 Loan Funds – 35 Business Investments – 139 Fixed Assets – 14 Net Current Assets – (1) Cash and Liquid Investments – 96 6 Investment in Core Businesses US $ Mn Planned Current Equity Peak Equity Business outlay for Investment Investment the business by Max India by Max India Life Insurance * 222 95 164 Healthcare # 156 32 60 Current stake of Max India * Life Insurance – 74% # Healthcare – 70% 7 Max India – Shareholding Pattern Number of Outstanding Shares as on June 30, 2006 – 35,978,895 Promoter Group - Analjit Singh 41% FDI – Warburg Pincus Others 17% 17% FII – Warburg Pincus FII – Others 11% 14% 8 Max India – Board of Directors Mr. Analjit Singh – Chairman Dr. S.S. Baijal Mr. N.C. Singhal Mr. Ashwani Windlass Mr. Bharat Sahgal Mr. N. Rangachary Mr. Piyush Mankad Mr. Rajesh Khanna - Warburg Pincus Mr. Nitin Sibal - Warburg Pincus Mr. B. Anantharaman – Joint Managing Director 9 Max Healthcare www.maxhealthcare.in 10 Max Healthcare Model • Heart and Vascular • Max Heart & Vascular • Neurosciences • Joint Replacement & Tertiary Institute Orthopaedics • Obstetrics and Gynaecology • Max Super Specialty Hospital • Paediatrics • High-end Diagnostics: MRI, CT Secondary • Max Hospitals – 4 • Doctor Consultation • Surgery and inpatient facilities • Specialist doctor consultation and a full time nurse. Primary • Dr. Max Clinics/Implants – 10 • Basic diagnostics like X- Ray, ECG and Pathology Collection • Enable retention of patient traffic • Enable ‘start-to-finish’ comprehensive, seamless care: Consult and Diagnostics, Diagnostic tests, pre-operative work up, operations, post-operative care. 11 Vision – Mission Key Differentiators PASSION Build Trust Focused NCR centric delivery – for operational excellence Deliver world class healthcare with a service focus, by creating an Close to customer – geography VISION institution committed to the highest standards of medical & service Comprehensiveness of medical services (except organ transplant and radio excellence, patient care, scientific knowledge and medical education. therapy) • Create unparalleled standards of Medical & Service Excellence • Care provider of FIRST CHOICE Leadership in 5 super-specialties in tertiary care • Principal Choice for Physicians -‘Star’ physicians supported by a group of high quality physicians • Ethical Practices Ethics MISSION • Create National Centre of Excellence for select Super Specialties. Memorable brand experience • Build towards international ‘reach’ by creating patient confidence through professional skills, research and technology -‘Star’ and quality physicians -Infrastructure and equipment • Profitable without profiteering. -No surprises – cost of care, pricing, medication GOALS • Seamless linkage between secondary and tertiary care. -Signage • Innovate to address wider market. -Look – feel – smell - touch KEY WHAT – Medical USP’s ; Best in class ; Comprehensive care ; Innovation to bring in walk-in customers Convenience & accessibility ; Seamless service ; Patient records ; Consistent and -Location location OBJECTIVES customised care ; Service excellence ; Preventive health ; Caring place to work. -Max Health Plan under roll-out HOW – Train train train ; Partnership with Medical community ; Principal choice for physicians ; -Other new programs ie Golden Years, Life Membership, Prepaid STRATEGIES Never ending focus on medical and service excellence ; Build lasting customer relationships ; Primary, Secondary and Tertiary care through Co. managed / partnership; No franchising. High quality nursing and paramedic care supported by nursing and paramedic college • WHAT- HOW - WHEN - COST - LINKAGE Technology and IT (in 18 months) NITIATIVES • Shared responsibility with single accountability. I • Unique approach through: Extensive emphasis on training - International benchmarking. - Walk the Talk - IT Capability Key Public Messages - Medical – Management Alignment. - Rehearse rehearse - Cost Efficiency Medical Excellence - Train train train. - Mystery customers - Attrition Management Service Excellence – Total Experience METRICS & PERFORMANCE VALUES & BELIEFS In your community - near you OPERATING PRINCIPLES STANDARDS MGMT PROCESS High-end tertiary care in Private • Caring • Courtesy & Caring always • ISO 9001 : 2000 • Competence rating sector • Excellence • Customer comes first • JCIA Accreditation • Potential analysis Comprehensiveness • Integrity • Do it right first time • Credentialing / Grant • PSC model Referral system – National & - Personal • International image standards of privileges • Balanced scorecard International - Professional • Efficient process management • Employee productivity • Performance / Risk linked • Openness/Transparency • Direct & open communications • Employee Engagement survey reward. Value for money • Teamwork • Create trust • Service Dashboard - Sparsh Partnering with medical community • Knowledge • Fun at work • NABH Accreditation Caring place to work • Win-win partnerships • Compliance • NABL certified Lab system. Corporate Social Responsibility 12 Max Healthcare- Board of Directors Mr. Analjit Singh Chairman and Managing Director Mr. B Anantharaman Joint Managing Director, Max India Limited Dr. Ashok Seth Mr. Mukesh Shivdasani Dr. Narottam Puri Mr. KK Mathur Dr. RP Soonawala Dr. Pervez Ahmed Mr. Aman Mehta Mr. Anuroop Tony Singh Mr. Rajesh Khanna Warburg Pincus Mr. Nitin Sibal Warburg Pincus 13 Indian Healthcare Indian Healthcare Industry: • Indian healthcare industry – Currently estimated at about $33 Billion. – Growing at 12% to 15% per annum. – Expected to be over $65 – 70 Billion by 2012, mainly driven by private sector investments. • Over 1 Billion people, spread across different economic classes. • Target Segment – More than 200 million upper and middle class. – Growing at over 4% per annum, with combined annual income of over $182 Billion. Health expenditure in India by funding sources: Gove rnm e nt Majority of healthcare spending 25% in India is on self pay… Self-pay 59% Municipal Bodie s 8% For e ign Aid Employers 2% 6% 14 Advantage India Core Competencies “International Class Treatment at Domestic Costs” Quality Huge resource of highly trained doctors, nurses and paramedics Comfort Level Doctors of Indian origin recognized as amongst best in USA and UK English Language Value Proposition Lower drug costs Quality medical services at substantially lower costs 24x7 Physician, Nursing and Paramedic Availability Hospital Information System 15 Current Facilities 16 Current Facilities Secondary Care Max Hospitals operational at: PANCHSHEEL PITAMPURA NOIDA (February 2001) (February 2002) (August 2002) (South Delhi) (North Delhi) (Suburb) •25 inpatient beds •100 inpatient beds •40 inpatient beds •1+1 OT •2+1 OT •2+1 OT •Full range diagnostics •Full range diagnostics •Full range diagnostics •PHP and OPD •PHP