Max India Limited Investor Presentation November 2018
www.maxindia.com 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
1 Evolution of Max Group—Strong history of entrepreneurship and nurturing successful businesses
Note: USD rate considered at 64 2 Max Group –Corporate Structure Max Group ‐ Sponsors
30.3% 41.0% 47.2%
Life Insurance Health & Allied Manufacturing & Holding
Companies Business* Business Other businesses
50% 51% 70.75%
100% 51%
100% Operating Companies 100% 100%
Group CSR Arm
Sponsors stake in Max Group holding companies 3 Max Group –Senior Management
Rahul Khosla • Group President • Chairman, Max India Limited • Executive President, Max Financial Services • Chairman, Max Healthcare Institute Ltd
Mohit Talwar Rajesh Sud • Managing Director, Max India Limited • Executive Vice Chairman & MD, Max Life Insurance • Managing Director, Max Financial Services (upto December 31, 2018) • Vice-Chairman, Max Ventures and Industries Ltd • Chairman, Max Bupa Health Insurance Co Ltd & • Chairman, Max Specialty Films Max Skill First (upto March 31, 2019)
Rajit Mehta Prashant Tripathy (with effect from Jan 1, 2019) • MD & CEO, Max Healthcare • MD & CEO, Max Life Insurance
Tara Singh Vachani Sahil Vachani • MD & CEO, Antara Senior Living • MD & CEO, Max Ventures and Industries Limited • Director in Max India & Max Healthcare • Director in Max Financial & Max Life Insurance
Ramneek Jain Ashish Mehrotra • CEO, Max Specialty Films • MD & CEO, Max Bupa Health Insurance
Mohini Daljeet Singh Rajender Sud • Chief Executive, Max India Foundation • CEO, Max Skill First Limited
4 Max Group Overview
1 USD 3 billion+… 10 Mn Customers… 25,000 Employees… ~80,000 Agents… 3,000 Doctors…
2 Strong growth trajectory even in challenging times; a resilient & diversified business model
3 Steady revenue growth and cost rationalization leads to strong financial performance
4 Well established board governance….internationally acclaimed domain experts inducted
5 Diversified ownership…..marquee investor base
6 Superior brand recall with a proven track record of service excellence
7 Strong history of entrepreneurship and nurturing successful business partnerships
5 Max Group : Continues to grow from strength to strength
Group Revenue (USD Mn)
2,945 2,584 2,190 1,639 1,915
FY'14 FY'15 FY'16 FY'17 FY'18
Group EBITDA (USD Mn)
129 110 127 81 95
FY'13 FY'14 FY'15 FY'16 FY'17
6 Max India: High pedigree investor base
Shareholding concentrated with Marquee Investors Shareholding Pattern . Ward Ferry as on Sep 30, 2018
0.0% 0.0% . International Finance Corporation 0.0% 0.0% . Target Asset management Others . New York Life Insurance 13.6% . Nomura Singapore . Doric Capital Mutual Promoters Funds 41.0% . Comgest 18.7% . TVF Fund . Government of Singapore . Reliance Mutual Fund FII/ FPI IFC 23.6% 3.1% . L&T Mutual Fund . HDFC Standard Life Insurance . UTI Mutual Fund
Number of outstanding shares* : 26.84 Cr.
* Max Group Sponsors hold warrants convertible into 4% equity stake, post conversion Sponsor’s stake will increase form 41% to 45%, on fully‐diluted equity base will increase to 28.7 Cr shares post conversion 7 MAX INDIA LIMITED
MAX HEALTHCARE
www.maxhealthcare.in www.maxindia.com
8 Indian healthcare industry is expected to reach ~$470 billion fuelled by multiple demand drivers
Indian healthcare sector * Estimated size, Bn USD CAGR 16.5%
450-470 CAGR 15.0% 280 320-340 160 60 79 2010 2012 2017 2020 2025 2025 Business As Usual Aspirational
Demand drivers for growth
~500 mn ~134 mn ~320 mn
additional middle population > 60 at risk of dying due class by 2025 years by 2020 to NCDs by 2020 ~45% ~$8 bn ~2 mn
Insurance medical tourism beds required by penetration by 2020 market size by 2020 2025
* Includes hospitals, pharmaceuticals & medical technology / other companies Sources: India Brand Equity Foundation – Healthcare report, July 2017, BofA Merrill Lynch Global Research 9 Hospitals constitute ~70% of Indian healthcare market with increasingly dominant role of private sector
Indian healthcare Private players have established a dominating presence in tertiary / sector* quaternary care Market share %
22% 20% 30% 37% 40%
78% 80% 70% 63% 60% 10%
Market Share Beds Inpatients Outpatients Doctors 20% Private sector Public sector
Market size of private hospitals is expected to reach ~$ 120 bn by 2020 70% Private sector hospitals 120 Estimated size, Bn USD CAGR ~20% 81 CAGR ~24% Hospitals 36 22 Pharmaceuticals Medical technology / Others 2009 2012 2015 2020
* Includes hospitals, pharmaceuticals & medical technology / other companies Sources: BofA Merrill Lynch Global Research, IBEF Mar'15 1 0 At current level of public sector spending the scenario is not likely to change
India- public spend on Healthcare % of GDP 8-10% Developed countries
~8% USA
5%+ WHO guidelines
3.5-4% BRICS- excluding India
2.50% 1.15% 1.40% 1.30% 1.20%
FY14 FY15 FY16 FY17 FY20-22
Hence, Government will keep shifting the burden of public health provision towards private sector
Source: LiveMint research, World Bank database, Hindustan Times 11 Competition is intensifying with scale‐up of well funded incumbents & availability of capital for new players
The surge of VC/ PE investments in recent years has eased funding constraints on growth Annual VC/ PE investment’s in India’s Healthcare ($ Million)
~3x
1,584 1,262 1,359 900 1,111 580 495
2010 2011 2012 20132014 2015 2016 No. of deals 35 29 65 60 54 50 86
Recent examples
TARGET INVESTOR AMOUNT DATE TARGET INVESTOR AMOUNT DATE
$221 mn Jan ‘16 $43 mn Jul ‘17
$68 mn May ‘16 $171 mn Aug ‘17
$63.5 mn Dec ‘16 $571 mn Jul ‘18
$200 mn Jul ‘17
Source: Crisil research, company websites and presentations, secondary sources 12 MHC vision
To deliver international class healthcare with a total service focus, by creating an institution committed to the highest standards of medical & service excellence, patient care, scientific knowledge, research and medical education
WHAT WILL WE BE KNOWN FOR KEY ENABLERS WHERE DO WE WANT TO BE
• Integrated care • Strong talent pool of • #1 in selected specialties in clinicians, nurses and chosen geographies • Clinical excellence healthcare leaders • Focus on Tertiary and • Transparency • Technology and Quaternary care analytics enabled • Speed clinical outcomes and • Physical infrastructure in customer experience North India; however • Tech enabled serving more than 300 continued care towns in India and 30+ countries
13 MHC is a dominant player in North India
NCR OUTSIDE NCR ~2500 available beds across the network
280 Pitampura* Shalimar Bagh 224 293
410 Mohali Vaishali 186 Patparganj Bathinda Panchsheel* Lajpat Nagar* 172 519 Dehradun 250 Noida* 72 Saket Max Smart 61
Gurgaon Greater Noida
* Standalone Speciality Clinics with Outpatient and Day care facility
14 MHC has invested in state of the art equipment to achieve clinical excellence (1/2) LINAC Novalis Robotics
Advanced robotics provides high precision, and High dose radiation with extreme minimum invasive surgery across multiple precision (~ 0.5 mm accuracy) specialities such as Oncology, Neurology PET-CT Brain suite
Advanced image guided surgery - Provides precise correlation and facilitates provides real-time views and automated proper treatment for Oncology, surgical image processing planning and radiation therapy
15 MHC has invested in state of the art equipment to achieve clinical excellence (2/2) SPIDER CyberKnife*
Robotic radio-surgery (non-invasive) system for Designed for revolutionary single incision both cancerous & non-cancerous systems laproscopic surgery through catheter-based, flexible instruments
Picture Archiving & Communication System - PACS Economical digital storage and convenient access to medical images from multiple modalities
* planned 16 MHC has a robust service excellence & quality framework which has resulted in enhanced customer experience
Top 2 Box Rating*
80% 69% 73% 57%
FY`15 FY`16 FY`17 FY`18 •“Sevabhav” trainings and Reward & Recognition platform has led to positive shift in mindset
• Structural Interventions through Six Sigma and other methodologies has resulted into business impact of over USD 18 Mn
* MHC is the only healthcare company who has deployed a third party (IMRB) to conduct Satisfaction survey 17 MHC strong Governance Model helps us bring alignment and improve accountability
Governance
Board & 7 committees
Investment & Medical Scientific Corporate Nomination & Service Audit performance excellence & projects & social remuneration excellence review compliance technology responsibility
Administration
Managerial Clinical
Group Medical Executive Committee Advisory Council (GMAC)
Hospital Medical Unit Heads Executive Council (HMEC)
Unit Management Doctor’s council Committee (MANCO)
18 MHC has a proven record of building an institution
Strengthened capabilities to provide comprehensive tertiary & quaternary care
Network of highly qualified doctors, nurses and medical personnel
Organic growth through expansion of hospital network
JV with Life Healthcare, South Africa, extending MHC is one of the expertise and global reach First MHC top 3 healthcare hospital started in chains in India 2002 Max Saket received JCI accreditation – highest standards of clinical governance and compliance
ISO DL Shah FICCI Business Leadership 9001:2000 National Excellence NABL/ World positions in & ISO Award on Awards - NABH Healthcare NatHealth 14001: 2004 ‘Economics Operational accredited Award in Patient and CII - certified of Quality’ Excellence Experience & healthcare Safety
19 MHC won 32 awards across multiple impact categories from various prestigious institutions in FY17 and FY18
Operational Service Quality Clinical Safety (7) Others (6) Excellence (9) (10)
•Best patient safety •Best use of six sigma in •Best customer service in •ET Best Healthcare initiative (prevention of Healthcare Healthcare brand patient fall) •Excellence in training •Best quality initiative and development (BCMA medication process improvement )
•Bronze award for ‘Life savers’ project (Max Bike •Best green hospital responder) at ‘American (reducing carbon foot print Society for Quality’ of tertiary care hospital) •BPM Asia Star 2017 by •Times Healthcare CII Institute of Quality Achievers Award
20 FY18 has been a year of reset caused by various regulatory interventions and other headwinds (1/3)
• DPCO: Drug price controls • Consumables and implants (stents, knee joints, syringes) price control • Minimum wage revision, Delhi State and other personnel cost impacts (ESIC coverage, bonus notification, etc) Sustained impact • EWS: Change in compliance norms • GST: Increase in service tax rate from 15% to 18% • Change in ECHS norms (Ortho) • Recent announcement on Margin capping on non-NLEM drugs, consumables and implants (Delhi govt led)
• Brand of corporate-led healthcare chains got impacted due to One time impact multiple incidents in the sector during Q3/Q4 • Shalimar Bagh Hospital closure (Dec’17)
21 FY18 has been a year of reset caused by various regulatory interventions and other headwinds (2/3)
Phase 1 Phase 2 Phase 3 Rapid organic expansion and profitability through Large inorganic acceleration, Recalibration driven by operating leverage but with some margin dilution regulatory interventions
MHC Annual Gross Revenue
Rs. Cr. +22% 2567 2787 2181 1739 1149 1407
FY13FY14 FY15 FY16 FY17 FY18 MHC Annual EBITDA
Rs. Cr. +42% 281 221 222 173 113 70
FY13FY14 FY15 FY16 FY17 FY18 6.2 8.3 10.2 10.5 11.4 8.5
xx EBITDA Margin FY16 excludes Rs. 6 Cr. of one time expenses towards the Pushpanjali and Saket City acquisitions; FY15 excludes Rs 3 Cr of one off expenses 22 FY18 has been a year of reset caused by various regulatory interventions and other headwinds (3/3) Phase 1 Phase 2 Phase 3 Rapid organic expansion and profitability through Large inorganic acceleration, Recalibration driven by operating leverage but with some margin dilution regulatory interventions MHC Annual Gross Revenues by Saket Complex East delhi complex hospital complexes 1800 +18% 1626 Rs. Cr. 1339 902 1047 954 1067 827 779 568 593 666 672 733 260 309 381 560
FY13FY14 FY15 FY16 FY17 FY18 MHC Annual EBITDA hospital complexes +15% Rs. Cr. 190 212 197 155 121 126 114 121 122 102 81 82 90 40 44 53 76 75
FY13 FY14 FY15 FY16 FY17 FY18 14.7 14.3 15.6 15.1 13.3 12.2 16.1 15.1 14.7 14.4 14.3 11.2
Note: Saket Complex includes Saket West Block, Saket East Block (unit of Devki Devi Foundation) and Max Smart (unit of Smart Hospital & Research Centre) hospital; East Delhi Complex includes Max Patparganj (unit xx EBITDA Margin of Balaji Medical and Diagnostic Research Centre) and Max Vaishali hospital 23 Strong momentum across all volume and value levers in last 5 years
Maintained healthy occupancy levels despite strong bed Steady growth in Revenue per occupied bed addition momentum Avg. unoccupied Avg. occupied Occupancy (%) Figures in Rs. Thousands Per OBD beds beds 74.3 73.5 72.1 73.1 +6% 69.7 71.1 44 39 41 +13% 37 2,330 2,377 33 34 2,049 1,680 640 1,472 592 651 1,302 445 394 378 1,457 1,679 1,737 908 1,094 1,235
FY13 FY14 FY15 FY16 FY17 FY18 FY13FY14 FY15 FY16 FY17 FY18
Consistent improvement in Average Length of Patient Consistent focus on key tertiary tower specialities Stay Figures in Number of days MAMBS Renal OrthoNeuro Onco Cardiac LBS -2.0% 56% 55% 54% 3.5 51% 53% 52% 3.5 3% 3% 6% 3% 2% 2% 2% 5% 7% 7% 6% 3.4 4% 7% 8% 10% 10% 10% 8% 3.3 3.2 10% 10% 10% 10% 10% 9% 3.1 11% 12% 13% 13% 12% 14% 15% 11% 14% 14% 13% 12% 0% 2%
FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 NOTE: FY16 and FY17 including Vaishali and Saket City Hospital; Cardiac revenue impacted by stent price capping in FY17 and FY18; 24 Ortho revenue impacted by implant price capping in FY18 Four dimensions to value creation for MHC
• Improve specialty mix • Improve channel mix – upcountry / international direct models / PSU closures • Bring back operational leverage through Existing scale / occupancy growth network • Sustained cost rationalisation initiatives in optimizat personnel, material and clinician cost ion
• Differentiated positioning • • Service experience Hospital Brownfield expansion • Patient safety Key to 5000+ beds network • • People enablers Onco daycare growth • • Compliance DiabetEase • Immigration Center
• Max Lab Alternate • Max@Home models • Tele Radiology • Physiotherapy BU
25 A Drive increase in share of preferred specialties to improve profitability
Reduction due to acquisitions with weak starting positions and value erosion in cardiac Action plan in place to grow focused specialties / ortho specialties due to price controls
Healthcare revenue specialty share • Build distinguished leadership Percent in all DMGs • Disproportionately grow the ONCOLOGY standalone centre model 1,720 Cr. 2,717 Cr. 100% • Personalized medicine • Provide end to end service offering • Launch specialized clinics 14 NEURO Preferred 56% 52% SCIENCES • Invest in high end Neuro equipment
• Build comprehensive transplant center in Saket complex TRANS- • Establish KTP and BMT programs in PLANT selected locations 20 Others 44% 48% • Focus on high-end procedures CARDIO • Partnerships with renowned global SCIENCES institutions – people & best practices FY15 FY18
Our aspiration is to have a preferred mix of 54.0 – 55.0% in FY22
xx CAGR (%) 26 A Drive increase in share of preferred channels to improve profitability
Reduction in preferred channels due to Action plan in place to increase the share of acquisitions with weak starting positions preferred channels
• Establish direct presence and digital Healthcare revenue channel share Inter‐ footprint in select markets Percent 100.0% 100.0% • Expand in attractive new markets national • Pilot and scale alternate business International 9.7% 10.3% models such as surgeries abroad / O&Ms • Sustained brand effort / experience delivery on new positioning • ATL/BTL campaigns for key specialties Walk-In 40.3% 36.0% Walk‐in through digital platforms • Strengthen ER capabilities • Seek new engagement models in the 18.4% prevention/ wellness space TPA 17.9% TPA • Assess co-development of product targeted at new customer segments 13.2% MECP 14.0% • Revamp channel sales through an direct MECP field force; strong focus on salesforce effectiveness Institutional/ 18.2% 22.0% PSU • Deprioritize; profitability improvement Institutional through focus on collections, material FY15 FY18 cost, and ALOS Our aspiration is to have a preferred mix of 72.5 – 73.0% in FY22
Preferred Non-preferred Channels Channels 27 Rs. 170 Cr. of cost savings achieved in FY16, FY17 and FY18 through A structured cost initiatives; Rs. 64 Cr. targeted in FY19
73 . Procurement efficiency
18 . Formulary driven substitutions 58 . Increase in consumables reusability
12 . ALOS and cost/OBD reduction esp. in PSU patients
39 35 . Organization restructuring at units 25 12 . Manpower contract rate negotiations . Physician compensation re-modelling
19 . Materials procurement efficiency 21 20 . Power saving through cheaper procurement, equipment 8 efficiency improvement and demand management FY16 FY17 FY18 . Collections and deductions management Material Costs Other Indirect Costs Personnel Costs (Incl. Clinicians)
Rs. 100 – 150 Cr. cost to be taken out in the next 2-3 years
28 B MHC expansion prioritised in hospitals with demonstrated track record of superior profitability
Max Healthcare Bed Capacity Saket complex: 1100* East Delhi complex: 200 East Delhi Saket Mullanpur: 400 complex: 106 complex: 315 Gr. Noida: 380 Saket S.Bagh: 104 complex: 10 Mohali: 85 Gurgaon: 8 5,237
2,080
504 2,529 0 124 0
Current Bed FY19 FY20 FY21 FY22FY23 & Beyond Total Capacity
Expansion prioritized in facilities that have a proven track record of delivering 15-16% EBITDA margin in the past
* Includes 200 beds of Saket FAR 29 B Onco Day Care Center: Operationalized in July’16, EBITDAR break even on the 3rd month
Figures in Rs. Lacs 439.2 • Standalone specialized facility away from th Saket doctors 389.6 7 July: 421.4 the hospital to ensure comfort and care X‐ray OPD started started st for our patients during chemotherapy 1 Sept: Ultra‐sound 275.3 sessions started 21st June’16 216.4 218.5 Chemo • Helps patients with their treatment and started FY’18 EBITDAR margin of disease by providing a non‐hospital 36.0 51.8 18.7% and EBITDA 61.8 margin of 9.9% environment and a highly efficient and 9.2 expert experience 14th July'16 Aug'16 Sep'16 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 June'16 Rev - Actual Channel Mix • Key Differentiators: Daycare Chair turnover IMRB Scores (FY’18) o Strong clinical protocols H2'18 0.9 Pan MAX 76% Cash 44% o Staff specially trained in soft/service H1'18 0.8 Oncology 79% TPA 20% skills H2'17 0.6 o Personalized treatment Q2'17 0.4 Onco DayCare 91% Others 36% June'16 0.1
Success of this centre has paved the way for opening more such centres; Work on for the 2nd one in Gurgaon. Noida facility being also transformed to set‐up Once DayCare
30 B Immigration Center: Revenue growth at 53% vs. LY
Revenue (Rs. Cr.) New Center opened
17.0
11.1 7.0
FY’16 FY’17 FY’18
Volume (‘000) 122.3
77.6 62.0
FY’16 FY’17 FY’18
Success of this centre has paved the way for opening more such centres; Work on for the 2nd one in Mohali
Figures in Rs. Cr. 31 C Max Lab: MHC has shown consistent growth in the non‐captive business over the last one and half years by leveraging its assets
Building blocks in place to achieve the growth Revenue (Rs. Cr.) aspiration Network Expansion +241% • Network of 580+ partners 7.7 • Over 250 active partners in March • Started operations in NCR, Punjab, Faridabad, and 5.4 Uttarakhand 2.9 • Added 2 HLMs, over 450+ beds 2.2
Technology • CRM platform for Sales Team for Team monitoring, Lead H1’17 H2’17 H1’18 H2’18 creation, Partner management • Upgrading LIMS for enhanced service delivery –project implementation underway Samples* (‘000) • Max Lab website under development +901% 102.9 Operations • Sales team expanded to 21 from 8 (Mar) • Successful launch of Matrika, Monga HLM 55.1 • Serviced over 100,000 orders in 9 months 21.5 Organization 10.3 • Team size grew to 175 (35 in Mar17) • Extensive Training sessions for staff / franchisee staff H1’17 A H2’17 AH1’18 A H2’18 A
* Pathology samples from Max@Home are also included 32 C Max@Home: With Rs. 1.5 –2 Cr. of investment till date, business stands at ~Rs. 28 Cr. revenue in FY18
Revenue (Rs. Cr.) Home Sample Collection +165% • 24*7 coverage 27.6 • 16% revenue contribution through out‐of‐hospital channels in Q4 • 19% repeat business in Q4 10.4 9.6
Medicine home delivery • 20% increase in volumes from 5636 (Q3) to 6762 (Q4) FY 16 FY 17 FY 18 • Increased repeat business from 12% (Q3) to 16% (Q4) New services 0.26 6% 2.74 50% 20.41 74% Critical care nursing • Critical care nursing service launched; Over 14 patients served Existing services 3.88 94% 2.75 50% 7.14 26% in Q4 Volumes (‘000) New territory‐ Mohali +218% • Nursing and GDA launched in addition to sample collection and pharmacy delivery 38.5 41.9 31.3 Max@home B2C platform 19.6 13.2 • ~450 tech features ; ~30 processes; 5 service line journeys • Wireframes for ~20 roles across portal, mobile app & tablet Q4’17 AQ1’18 A Q2’18 A Q3’18 A Q4’18 A
Steady state EBITDA margin ~25%
33 C Teleradiology and Physiotherapy BU: Launching 2 new businesses in FY19 with high market potential
Tele Radiology Physiotherapy BU • International (US & western Europe): Rapidly • Indian Rehab market is projected to grow at a CAGR growing market at ~18‐20% CAGR (FY11‐16) of 15% from FY15‐FY20 to reach a market size of USD driven by digitally enhanced healthcare ~1.0 bn in FY20 infrastructure and integration of teleradiology; market size of USD ~1.2 bn in • Growth factors include rising elderly population FY18 (estimated to reach 323 mn by 2050), chronic illnesses & increase in awareness Market • International (developing –Africa): Lack of potential radiologists; project growth in FY18‐22 at 15‐ • 70% of market is currently out‐of‐hospital (which 20% includes services @home and clinics), while hospitals focus primarily on their in‐patients • Domestic: Market growing at ~10‐12% CAGR (FY11‐16) driven by widening network of high‐speed broadband services, shortage of radiologists in tier‐2 cities , etc. • Create a Physiotherapy BU platform in FY19: • Pilots underway in both domestic and international markets o In house and integrate to ensure best practices and standardization of service delivery MHC’s • 5 clients –4 domestic, 1 international – signed within 6 months of operations o Create well defined care plan owned by plan physiotherapist that is additionally signed off by the treating clinician o Offer niche services such as Speech Therapy, Sports physiotherapy, Mental Health etc.
34 MAX INDIA LIMITED
MAX BUPA HEALTH INSURANCE LIMITED
www.maxbupa.com www.maxindia.com
35 A symbiotic partnership in health insurance
Helping people live longer, + healthier, happier lives In the business of Life do
Domestic Health Global Health Dental and Travel Advice Primary Care we Insurance Insurance insurance Clinics What Dental clinics Aged Care
► Diversified group with interests in insurance, ► Leading international healthcare group present across 190+ healthcare, manufacturing, real estate, learning nations, provides personal and company health insurance, and senior living runs care homes for the elderly and hospitals in addition to a range of health services ► Founded in 1985 with an entry in the bulk pharma business, Max has evolved into one of ► Founded in 1947 in the UK, Bupa employs over 86,000 the leading health services organizations in people across UK, Australia, Spain, Hong Kong, Poland, New
Highlights India Zealand, Chile, Brazil, Thailand, Saudi Arabia, India and the US ► Over INR 191 billion in revenues, serving over 10 million customer with 25,000 employees and ► Revenues of over £11 billion, over 70% coming from health 3,000 doctors. insurance covering over 16.5 million customers
Max Bupa is a 51:49 joint venture between Max Group and Bupa
36 Our Vision and Mission
Vision Mission
To be the most admired To help customers live Health insurance company in healthier, more successful India lives
Caring Respectful Ethical Accountable Trustworthy Enabling
37 Health insurance retail landscape
The retail health insurance market is expected to reach INR 630 billion by 2025 growing at a CAGR of 22%
Retail Health Insurance –Market Size Factors driving growth
(GWP INR Billion) . 16%+ affluent household by 2025, doubling Rising affluence and current level of 8% urbanization . 48 cities expected to have >40% affluent household vs. 0 cities currently 630 . India expected to have over 350 M people > 50 Ageing population years by 2030 . Increasing demand expected by this segment along with evolution of product suite
. Rapidly growing incidence of cancer, cardio- 22% Rise in chronic disease vascular diseases (CV) and diabetes incidence .Cancer, CV and diabetes form ~28% of health expenditure which is expected to grow further
Increasing medical cost & . Over 20% annual healthcare inflation coupled with high out-of-pocket expenses (62%) high OOP expected to drive demand further 158 . 650 M mobile internet users by FY20, ~1.7x from Internet penetration and E‐ current ~390 M commerce growth . 400-450 M digitally influenced shoppers by 2025 expected to drive break-out digital channel growth FY'18 FY'25
Source: KPMG 38 Industry landscape
Industry growth during FTY Aug’18* SAHI growth during FTY Aug’18* MBHI growth Segment‐wise GWP (INR Cr) H1 FY’19
19% 38% 16,833 3,293 1,082 3 14,148 662 B2G 1,106 2,383 B2G 18,388 2 24% B2B 430 B2B 7,563
2,629 Overall sales growth B2C 1,950 B2C 5,479 6,526
FTY Aug’17 FTY Aug’18 FTY Aug’17 FTY Aug’18
• Among all players, Private GIs registered highest growth as compared to SAHIs and Public GIs (@ 46%, 39% and 2%)
• SAHI growth has been higher than overall health industry. PA has grown at a faster rate than health insurance for SAHIs (70% vs 38%)
• MBHI, PA business increased by over 3 times (Y‐o‐Y basis)
* Industry numbers are excluding PA revenue; The HI market including PA is worth Rs 19,131 Cr and has grown by 20% over last year; SAHIs contribution (including PA) 39 is to the tune of Rs 3,561 Cr and have grown by 39% over same period last year Journey since inception
GWP, Rs cr 404 755 xx% Y-o-y growth 27% 594 CAGR 476 25% FY18-19* 28% FY17-18 373 18% FY16-17 309 FY15-16 53% 207 FY14-15 66% 125 FY13-14
FY12-13
FY10-12
• B2C • Entered B2G - First RSBY • Prioritized B2C • Entered B2B scheme won business in
Segment FY’12
• Agency • First Banca partnership • Launched three more • Launched 4 partners • Launched Bank of • Industry first digitally • Commenced • Direct channels (Deutsche bank) Banca partnerships (Sarv UP, Muthoot, Baroda serving more enabled product business with HDFC • TPD • Rationalized TPD2 Coverfox, Bank Bazaar) than 5,400 branches ‘GoActive’ launched bank and Karur on 13th Feb’18 Vysya Bank
• Commenced
Channel business with South Indian bank • In-house • Launched ‘Walk for Health’, • Reached ~3,100 network • 30-min claims • CRM launched • Standing Instructions • Launched India’s • Launched claims annual brand property providers settlement (92% cases) for auto renewal first “Any time Customer mobile • Walk for Health went health” machine application processing national touching 33 • First ‘embedded’ MM lives product launched at • Launched Point of Federal bank care desks for customer delight Service model
* For H1 FY’19 40 Healthy growth with consistent improvement in combined ratio
B2C B2B B2G
755 +30% 14 594 4 . Max Bupa’s focus has been on 476 6 4 the B2C segment since 6 4 373 inception 309 18 1 736 207 56 8 584 466 . While it is harder to build a 38 7 354 B2C book (linear customer 162 245 acquisition vs. lumpy demand Gross written premium (Rs cr) 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 of B2B or B2G), Max Bupa has grown at 27%, faster than market (market growth ~23% for FY’18)
. B2C focus driven operating 151% 142% 127% model choices and some 118% 116% 109% execution challenges have resulted in higher upfront opex spend Combined Ratio* (%) Combined Ratio*
2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18
* Combined ratio = Claim ratio (Net claim incurred / Net Earned premium) + Opex ratio (Opex / GWP) + Commission ratio (Net commissions / GWP) Combined ratio for FY 17-18 basis IRDAI definition is 104% 41 Max Bupa today
In a large, fast growing market Max Bupa delivers 2.8m customers, a vast distribution network and leading brand
Focus on B2C segment from inception
Investments in direct channels to support the “pull” model; Premium infrastructure (office locations and size) in line with overall positioning
Launched first to industry innovations – Any Time Health Machine; Complete digitally enabled wellness ecosystem; Highest Sum Insured options; No age restriction for enrolment; No claim loading; Guaranteed renewability; No 2 year waiting period 1st of its kind, Digitally enabled wellness product - Max Bupa is the only insurance company with an annual GoActive brand property - Walk for Health initiative
62mn* lives touched Customer service is a key focus area – through Walk for ~2.8m total ~78% of customers rate claims Health customers experience with Max Bupa as very good (2017-2018) or excellent 13,900 agents
4,064 providers in network GWP Rs. 404 cr (H1 FY’19) 9 banca partners with 13,400 branches 1,900 employees accessing 101mn 30 branches customers 98% B2C 24% Growth business (H1 FY’19)**
*Duplicate reach across mediums **Growth over same period last year 42 Comprehensive product suite
Heartbeat Health Companion Health Assurance
An indemnity product with A fixed benefit product with Our flagship indemnity refill benefit, alternative unique 3-in-1 combination of product with the most treatments & Extended Family personal accident, critical comprehensive coverage First proposition illness & hospital cash
Key features include Key features include Accident Care: hospitalization costs including: hospitalization costs including: ► Accidental death benefit ► State of art coverage - ► No limit on room rent and pre ► Accidental Permanent Total Cashless international and post hospitalization Disability coverage (market first) expenses ► Accidental Permanent Partial ► Lowest (2 years) pre-existing ► Added protection with Unique Disability benefit disease waiting period Refill benefit Critical Illness: ► Out Patient benefits ► All day care procedures covered ► Covers 20 critical illnesses ► AYUSH benefits ► Unmatched renewal benefits ► 2 options: Lump sum & Lump ► Maternity & New Born benefits − No Claim Bonus (No reduction sum + staggered pay-out for 5 ► Coverage from Day 1 for in case of claims) years accidents − Health check ups to help keep Hospital Cash: ► Waiver of 24 months waiting track of the health condition ► Daily cash benefit & double period for specific conditions ► AYUSH in-patient treatment cash benefit for ICU below 45 yrs ► Super top up ► Loyalty benefit at renewal
43 Comprehensive product suite
GoActive Group Platform
A digitally enabled, new age A group product with customer centric product customized propositions by offering that will serve the selecting from over 35 everyday health needs of the product features and customer parameters
Key features includes: Group Health Insurance includes: ► Lifetime discount of 10% of premium if purchased at or ► Group cover for hospitalization before 35 years age benefit ► Upto 10 OPD consultations Group Personal Accident: included in the cover ► Accidental Death , Permanent ► Health coach option to enable Total & Partial Disability customers remain fit and Loan linked group critical healthy illness ► Second medical opinion ► Loan linked cover for 25 critical ► I-protect option to increase SI illnesses by 10% every year ► Single pay up to 5 years ► Annual health check- Group medical cover up/diagnostics of customers choice ► Customizable product for employer employee groups – B2B
44 Distribution architecture
. Largest distribution channel for the company . Spanning 29 branches across 19 cities Agency . Over 36% contribution in overall revenue . Frontline sales force of ~450 Agency Managers ~13,900 agents . One of the most productive agency force amongst SAHIs (Standalone Health Insurers)
. 9 Banca partnerships (2 foreign banks, 6 Indian banks and 1 rural bank), the highest numbers amongst SAHIs • Network of 13,400 bank branches across the country Banca & • ~750 FOS (Including NBFC) Alliances . 3 NBFC tie-ups (Capital First, Muthoot, Bajaj Finserv) . Brokers (Bajaj Capital, NJ Brokers, Shriram) . Rural business (RSBY)
. One of the largest captive tele-sales unit . Capacity of ~130 out-bound tele-callers Digital . State-of-the-art technology infrastructure (Dialer / CRM) with secure environment . Online sales through MBHI website & web aggregators (6 partners, including Policy Bazaar – a leading industry player)
. Dedicated sales-force Direct sales . ~70 full-time employees to address high-net worth individuals’ needs . Spread across top 4 metros
Internal 45 Channel wise Performance (FY16 to FY18)
Key highlights for channels over the last two years Channel mix . Agency channel grew by 23% over two year period despite headwinds on account of price revision of Heartbeat and Health 2% 2% Companion; Agency OTC app launched to enhance digital sales 23% 22%
. Increasing share of Banca & Alliances in the channel mix while 2016 51% 2018 49% registering a 37% growth over two years; MBHI has engaged in partnerships in last 3 years - Bank of Baroda, South Indian 23% 27% Bank, HDFC Bank and Sarv UP
. DST & Digital channel grew by 20%. Digital has been the focus area of MBHI and has seen a growth of over 22% between 2016 3% and 2018. DST repurposed running at a combined ratio of 100%, Agency 22% heading towards profitability. Banca & Alliances H1 46% . Persistency grew by over 4% from FY’16 to FY’18 despite price Digital & DST 2019 increase across portfolio re-confirming customer confidence in the Others 29% brand, products and services
. Launched GoActive – a digitally enabled, new age customer centric product with an integrated wellness system
. Sharper Upsell strategy – More targeted approach by including ‘preferred product category’ based approach
. Initiatives taken to control high risk flows o Closure of variants of HB silver and HC (9% of the portfolio) for new sales o Cap on portability o Pin Code restrictions o Revision of stance on non disclosure . High focus on innovation in product and services
Others include B2B, B2G Internal 46 Innovations at Max Bupa
47 Digital innovations in H1 FY’19
Customer App Industry first digital ecosystem
Insta Insure Web & Mobile application
Infinity New platform for GHI
Internal 48 Strategic priorities – strengthening the foundation
Provider of choice in the Affluent segment in urban A Remarkable India People customer experience First 1 2 Broad base the franchise Customer B with partnerships & alliances Centric 5 Profitable 3 Build a Customer centric, Growth Compliant & Cost conscious C Build Profitable Culture Digital 4 Growth
Digitally enable end to end customer journey D Portfolio Management - Renewals
49 Key Initiatives for FY19
50 External recognition
51 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 performance is not indicative of future results. Neither the Company nor any of its affiliates, advisers or representatives accepts liability whatsoever for any loss howsoever arising from any information presented or contained in the presentation. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed.
The presentation may also 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 from our expectations and assumptions. We do not undertake any responsibility to update any forward looking statements nor should this be constituted as a guidance of future performance.
This presentation does not constitute a prospectus or offering memorandum or an offer to acquire any securities and is not intended to provide the basis for evaluation of the securities. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the securities shall be deemed to constitute an offer of or an invitation.
No person is authorised to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of the Company any of its affiliates, advisers or representatives.
The Company’s Securities have not been and are not intended to be registered under the United States Securities Act of 1993, as amended (the “Securities Act”), or any State Securities Law and unless so registered may not be offered or sold within the United States or to, or for the benefit of, U.S. Persons (as defined in Regulations S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the applicable State Securities Laws.
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52 ANNEXURES
53 MHC ‐ Board of Directors
Ms. Roshini Bakshi Mr. Rahul Khosla (Chairman) Managing Director, Everstone Capital Asia (Singapore) President – Max Group Extensive global management experience; Bachelors Seasoned business leader with over 30 years of deep in Economics from St Stephen’s College, Delhi and global experience in Banking and Financial markets. MBA from IIM Ahmedabad.
Dr. Omkar Goswami Mr. Mohit Talwar Economist and Leading Academic Managing Director at Max India Ltd. & Max Financial Serves on Board of many Indian MNCs including Dr Services Ltd., Over 30 years of experience in Corporate Reddy’s, Infosys, IDFC, Crompton Greaves, Cairn Finance and Investment Banking. India Ltd. etc Mr. Rajit Mehta Mr. Kummamuri Murthy Narasimha Managing Director & CEO- Max Healthcare Independent Director; Leading Finance professional Over 20 years of experience in financial services. associated with the development of Cost & Previously Chief Operating Officer at Max Life Management Information Systems for over 150 firms Insurance. Dr. Ajit Singh Mr. Adam Pyle Partner at Artiman Ventures, focusing on early- Non Executive Director and Group Executive, Strategy stage technology & life science investments and Investor relations, Life Healthcare Group. PhD in Computer Science from Columbia University Commerce and Law graduate and currently responsible at LHC for driving the international strategy. Dr. Pradeep Kumar Chowbey, Padmashri .Mr. Pieter Van Der Westhuizen Director of Max Institute of Minimal Access, Non Executive Director and Chief Financial Officer, Life Metabolic and Bariatric Surgery. More than 35 yrs Healthcare. Part of the LHC group for last 17 years and of experience in Lap Surgery has fulfilled various financial roles
Ms. Tara Singh Vachani Dr. Shrey Balaguru Viranna Chief Executive Officer and Managing Director of Non Executive Director and Group CEO at Life Antara Senior Living Healthcare Group. Dr. Shrey is a medical doctor by A natural leader, she represents the dynamic new training and has extensive experience in the heathcare cadre of young women entrepreneurs in India industry
54 MHC – Management Team
Mr. Rajit Mehta Mr. Yogesh Sareen Managing Director & CEO- Max Healthcare Senior Director & Chief Financial Officer Over 20 years of experience in financial services. Over 20 years of experience in across all facets of Previously Chief Operating Officer at Max Life finance; previously CFO of Fortis Healthcare. Insurance.
Mrs. Swati Rustagi Mr. Rohit Kapoor Senior Vice President & Chief People Officer Senior Director & Chief Growth Officer Over 17 years of experience in HR across FMCG, 18 years of diverse experience across industry and Financial Services and Health Care sectors. Previously management consulting with McKinsey & Company global head of HR at Glenmark Pharmaceuticals
Mr. Anil Vinayak Mr. Anas Wajid Director & Zonal Head – NCR 1 Director - Sales & Marketing Over 23 years of experience in Business Management More than 17 years of experience in diverse fields such and Sales & Marketing; previously with Amex as advertising, retail , healthcare and media. Previously Head, Sales and Marketing at Fortis Healthcare
Dr. Sandeep Buddhiraja Mr. Sumit Puri Director - Clinical Directorate & Institute of Internal Med. Director- IT & Chief Information Officer Over 23 years of experience in the field of Internal Over 21 years of experience in varied industries Medicine such as Health/ Life Insurance, IT/ITES, and Consulting; previously CIO of Prudential Life Assurance Mrs. Vinita Bhasin Mr. Atulya Sharma Director - Service Excellence & Customer Operations Director- Legal, Compliance and Regulatory Affairs More than 19 years of in-depth experience across the Over 26 years of diverse experience in Manufacturing, Financial Services sector; previously with Max Life Investment Banking, PE & Infrastructure. Previously Insurance General Counsel of Deutsche Bank AG, Group General Counsel of IDFC
55 Key Physicians
Dr. Pradeep Kumar Chowbey, Padmashri Dr. K. K. Talwar Director of Max Institute of Minimal Access, Metabolic Chairman - Cardiology, Max Healthcare and Bariatric Surgery. Clinical experience of more than 39 years More than 35 yrs of experience in Lap Surgery, Former Head, Department of Cardiology, AIIMS completed 70K+ major Lap procedures
Dr. Anant Kumar Dr. Sandeep Buddhiraja Chairman – Urology,Renal Transplant, Robotics(Max Director - Clinical Directorate & Institute of Internal Med. Saket Complex) and Uro-Oncology Max Saket Over 23 years of experience in the field of Internal 2200 Kidney Transplantations in the last 25 years Medicine and over 1500 lap donors nephrectomy
Dr. Subhash Gupta Dr. Harit Chaturvedi Chairman - Liver Transplant & Biliary Sciences Chairman – Cancer Care, Director & Chief Consultant - 2,200+ liver transplant surgeries & over 30 year Surgical Oncology experience in Liver Transplants Over 25 years of experience in Surgical Oncology. Recipient of the BC Roy award Strong consultant bench strength of 350+ across Dr. A.K. Singh specialities : Director – Max Institute of Neurosciences, Dehradun Renowned Neurosurgeon having 40 years experience . Cardiac – 100+ Recipient of the BC Roy award . Oncology – 50+ Dr. Anurag Krishna . Orthopaedics – 50+ Director- Paediatrics & Paediatrics Surgery Over 20 years of experience in Paediatric surgery - . Neurosciences – 50+ complex congenital malformations . Renal – 50+ . MAMBS – 25+
56 MHC Network* –Performance Dashboard (Q2 & H1FY19) Rs Cr Quarter Ended Growth (%) Half Year Ended Growth Key Business Drivers Sep‐18 Jun‐18 Sep‐17 Q‐o‐QY‐o‐YSep‐18 Sep‐17 Y‐o‐Y a) Financial Performance Revenue (Gross) 727 694 712 5% 2% 1,420 1,414 0% Revenue (Net) 670 641 676 4% ‐1% 1,311 1,342 ‐2% Direct Costs Material Cost 163 167 169 ‐2% ‐3% 330 336 ‐2% Clincian Payout 109 112 116 ‐3% ‐7% 221 234 ‐6% Contribution 398 362 390 10% 2% 760 773 ‐2% Contribution Margin^ 59.4% 56.5% 57.8% 297 bps 163 bps 58.0% 57.6% 41 bps Indirect Costs Personnel Cost 184 185 170 ‐1% 8% 368 337 9% Other Indirect overheads 118 114 117 3% 1% 232 232 0% HO Costs 32 34 34 ‐5% ‐5% 66 70 ‐6% ‐5% EBITDA 65 30 69 118% ‐6% 95 133 ‐29% Cash Profit > 100% ‐14% ‐51% EBITDA Margin^ 9.7% 4.6% 10.3%32 506 bps (54) 2 bps 37 7.2% 9.9% (269) bps34 69 Depreciation 38 38 34 0% 10% 76 67 12% Finance Cost 33 28 32 18% 3% 61 64 Profit /(loss) before tax (6) (36) 3 84% < ‐100% (41) 2 < ‐100% Tax 1 1 1 ‐6% 103% 3 2 10% Profit /(loss) after tax (7) (37) 2 82% < ‐100% (44) (0) < ‐100% b) Financial Position Net Worth 1,033 1,039 1,124 ‐1% ‐8% 1,033 1,124 ‐8%
*The aboveNet results Debt are for MHC Network of hospitals and 1,237includes results 1,222 for Max Super 1,168 Specialty Hospital, 1% Saket, 6%unit of Devki 1,237 Devi Foundation, 1,168 Max Super 6% Speciality Hospital,Fixed Assets Patparganj, ‐ Gross unit of BlockBalaji Medical and 2,187Diagnostic Research 2,188 Centre 2,056 ; Saket City Hospital 0% unit of Gujarmal 6% 2,187 2,056 6% Modi Hospital & Research Centre & Max Multi Speciality Hospital Greater Noida unit of Four Season Foundation 57 ^ on the basis of net revenue MHC Network* –Performance Dashboard (Q2 & H1FY19)
Quarter Ended Growth (%) Half Year Ended Y‐o‐Y Key Business Drivers Sep‐18 Jun‐18 Sep‐17 Q‐o‐QY‐o‐YSep‐18 Sep‐17 Growth a) Patient Transactions (Nos. in lacs) Inpatient Procedures 0.49 0.47 0.53 3% ‐9% 0.96 1.05 ‐9% Day care Procedures 0.11 0.11 0.13 1% ‐14% 0.23 0.26 ‐14% Outpatient Registrations 17.74 17.20 17.99 3% ‐1% 34.94 35.24 ‐1% Total 18.34 17.78 18.66 3% ‐2% 36.12 36.56 ‐1% b) Average Inpatient Operational Beds 2,377 2,376 2,369 0% 0% 2,377 2,362 1% c) Average Inpatient Occupancy 74.2% 70.9% 74.3% 333 bps (4) bps 72.6% 73.6% (101) bps d) Average Length of Stay (days) 3.34 3.25 3.03 ‐3% ‐10% 3.29 3.02 ‐9% e) Average Revenue/Occupied Bed Day (Rs) 43,398 44,045 43,959 ‐1% ‐1% 43,712 44,441 ‐2% f) Other Operational Data Physicians 3,023 2,968 2,854 2% 6% 3,023 2,854 6% Employees 9,597 9,388 9,202 2% 4% 9,597 9,202 4% Customer Base (in lacs) 43.9 42.3 39.1 4% 12% 43.9 39.1 12%
*The above results are for MHC Network of hospitals, includes results for Max Super Specialty Hospital, Saket, unit of Devki Devi Foundation, Max Super Speciality Hospital, Patparganj, unit of Balaji Medical and Diagnostic Research Centre; Saket City Hospital unit of Gujarmal Modi Hospital & Research Centre and Max Multi Speciality Hospital Greater Noida unit of 58 Four Season Foundation MHC Network Hospitals (Saket* & East Delhi^ Complex) –Performance Dashboard (Q2 & H1FY19) Rs Cr Quarter Ended Growth (%) Half Year Ended Y‐o‐Y Key Business Drivers Unit Sep‐18 Jun‐18 Sep‐17 Q‐o‐QY‐o‐YSep‐18 Sep‐17 Growth Saket Complex a) Financial Performance Revenue(Net) Rs. Cr 250 242 257 3% ‐3% 492 512 ‐4% EBITDA Rs. Cr 29 20 30 40% ‐4% 49 62 ‐21% EBITDA Margin % 11.5% 8.4% 11.6% 302 bps (10) bps 10.0% 12.1% (216) bps b) Average Inpatient Operational Beds No. 769 769 721 0% 7% 769 728 6% c) Average Inpatient Occupancy % 75.1% 71.8% 78.1% (331) bps (300) bps 73.5% 76.8% (333) bps d) Average Revenue/Occupied Bed Day Rs. 51,705 52,297 52,139 ‐1% ‐1% 51,993 52,511 ‐1% e) Average Length of Stay (days) 3.69 3.61 3.25 ‐2% ‐14% 3.65 3.23 ‐13% East Delhi Complex a) Financial Performance Revenue(Net) 182 166 173 10% 5% 348 336 3% EBITDA Rs. Cr 27 12 21 121% 28% 39 41 ‐6% EBITDA Margin % 14.7% 7.3% 12.0% 740 bps 264 bps 11.2% 12.2% (107) bps b) Average Inpatient Operational Beds No. 709 691 694 3% 2% 700 685 2% c) Average Inpatient Occupancy % 81.3% 77.6% 78.8% 373 bps 251 bps 79.5% 78.0% 150 bps d) Avg. Revenue/Occupied Bed Day Rs. 38,076 37,841 36,752 1% 4% 37,963 37,160 2% e) Average Length of Stay (days) 3.46 3.24 3.04 ‐7% ‐14% 3.35 3.03 ‐11%
*Saket Complex includes Saket West Block, Saket East Block (unit of Devki Devi Foundation) & Max Smart (unit of Smart Hospital & Research Centre) hospital ^East Delhi Complex includes Max Patparganj (unit of Balaji Medical and Diagnostic Research Centre) & Max Vaishali hospital 59 MBHI ‐ Board of Directors
Mr. Murthy entered the Profession of Rajesh Sud is the CEO and Managing Rajesh Sud K Narasimha Cost & Management Accountancy in Director of Max Life Insurance, one of 1983. He is associated with the Chairman & the first three private life insurers to Murthy development of Cost & MIS for more Director start operations in 2001 Director than 150 companies
John joined Bupa's Board as a Non- Rahul Khosla Rahul Khosla is the President of Max Group and Executive President, Max John Howard Executive Director in July 2011. He is Co-Vice Chairman of Bupa’s Audit Committee Financial Services. He is a seasoned Lorimer Chairman & and a member of Bupa's Risk business leader with 30 years of Director Director experience in India & globally Committee and UK Regulated Entities Board
David Fletcher David commenced in the new role of Ms. Theron is a Principal of Erlen Co-Vice Chief Risk Officer in January 2017. He Marielle Theron Street Corporation, Switzerland, a has been with Bupa since 2014 in company that specialises in strategic Chairman & senior roles including Chief Internal Director investment and management Director Auditor and MD of IDM. consulting solutions
Joy is the CFO of Bupa Plc. She has Pradeep is a highly experienced senior Joy Linton over 25 years’ experience in financial Pradeep Pant business leader, now involved in and strategic roles in Australia and the Director Director business consulting and education UK.
Ashish has over two decades of Mohit is the Managing Director of Max extensive banking experience. In his last Financial Services and Max India. He Ashish Mohit Talwar role as MD and Head for Retail division has an experience of over 30 years in Mehrotra of Citibank in India, he was pivotal in Director Corporate Finance and Investment MD & CEO enabling bank gain a leadership position Banking. in the wealth management business
Mr. D. K. Mittal is a former Indian D.K. Mittal Administrative Service (IAS) officer of Dr. Burjor Banaji Dr. Burjor Banaji is an ophthalmic surgeon who introduced several firsts Independent 1977 batch (UP cadre) and has served Director in the field of ophthalmology to India Director the government of India in various capacities.
60 MBHI – Management Team
Ashish has over two decades of With over 18 years of experience, extensive banking experience. In his last Ashish Vikas joins us from Max Life role as MD and Head for Retail division Vikas Gujral Insurance. Prior to Max Life, he has Mehrotra of Citibank in India, he was pivotal in Chief Operating worked with Bharti Airtel and GE MD & CEO enabling bank gain a leadership position Officer Capital. in the wealth management business
Rahul has wide domain expertise built Anurag joins Max Bupa from Max Life, Rahul Ahuja over 19 years mainly in corporate Anurag Gupta where he has held a number of senior Chief Financial banking, financial services and Head – Agency roles across distribution and product Officer telecom. management over a decade.
Aseem has nearly two decades of Tarun has joined us from for Sistema Aseem Gupta experience in sales and distribution Tarun Katyal Shyam Teleservices. He has over 25 Head – Portfolio and has worked across channels - Chief Human years of experience across retail & Management & Affinity Agency, Banca, Special markets & Resources Officer manufacturing industries, including Channels Direct Sales. multi-national and Indian corporates
Partha brings along 20 years of Atul has 15 years of experience in Partha Banerjee diverse experience in Corporate, Atul Bhandari product/process management & Head – Legal & Commercial, Taxation, IPR, Exchange Head – Banca sales/distribution, he joined us from Compliance Control, M&A, Labour Laws and other and Alliances CITIBANK NA, prior to which he substantive and procedural laws. worked in Standard Charted bank.
Raman has joined us from Anika heads the Marketing & E- commerce verticals at Max Bupa and Cholamandalam MS General Insurance Anika Agarwal Ramanan A V where he was heading the Actuarial is responsible for brand planning, Head – Marketing digital media, communications, Actuarial head department, he started his carrer as a & Direct Sales lecturer and has also worked with Tamil consumer insights, direct sales and E- Nadu Electricity Board for 20 years commerce.
61 Max Bupa –Performance Dashboard (Q2 & H1FY19)
Quarter Ended Y‐o‐Y Half Year Ended Y‐o‐Y Key Business Drivers Sep‐18 Sep‐17Growth Sep‐18 Sep‐17 Growth a) Gross written premium income First year premium 83 54 54% 142 108 32% Renewal premium 136 115 18% 262 219 19% Total 219 168 30% 404 327 24% b) Net Earned Premium 182 146 25% 345 279 24% c) Cash Profit /(Loss) (22) (2) < ‐100% (30) 3 < ‐100% d) Pre tax Profit /(Loss) (26) (6) < ‐100% (39) (5) < ‐100% e) Claim Ratio (B2C Segment, normalized)* 55% 60% 500 bps 53% 58% 530 bps f) Avg. premium realization per life (B2C) 8,293 8,057 3% 8,399 7,952 6% g) Conservation ratio (B2C Segment) 85% 82% 302 bps 85% 83% 193 bps h) Lives In force in millions (including RSBY) 3.1 2.5 24% i) Number of agents 26,505 21,915 21% j) Paid up Capital 941 926 2%
62 MAX INDIA LTD. Max House, Okhla, New Delhi – 110 020 Phone: +91 11 26933601‐10 Fax: +91 11 26933619 Website: www.maxindia.com
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