Fortis Healthcare Limited Corporate Presentation

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Fortis Healthcare LimitedCorporate Presentation
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Safe Harbor

• Except for the historical information contained
  herein, statements in this presentation and the
  subsequent discussions, which include words or
  phrases such as will, aim, will likely
  result, would, believe, may, expect,
  will continue, anticipate, estimate,
  intend, plan, contemplate, seek to,
  future, objective, goal, likely,
  project, should, potential, will pursue
  and similar expressions or variations of such
  expressions may constitute "forward-looking
  statements". These forward-looking statements
  involve a number of risks, uncertainties and
  other factors that could cause actual results to
  differ materially from those suggested by the
  forward-looking statements. These risks and
  uncertainties include, but are not limited to our
  ability to successfully implement our strategy,
  our growth and expansion plans, obtain regulatory
  approvals, our provisioning policies,
  technological changes, investment and business
  income, cash flow projections, our exposure to
  market risks as well as other risks. Fortis does
  not undertake any obligation to update
  forward-looking statements to reflect events or
  circumstances after the date thereof.

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Corporate Profile

• Vision
• Network
• Presence and Growth Chart
• Promoter Group
• Promoters
• Directors
• Professional Associations
• Investors
• Core Competence
• Strengths
• Financials
• Peers
• Mission

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Vision
To create a world-class integrated healthcare
delivery system in India, entailing the finest
medical skills combined with compassionate
patient care Late Dr. Parvinder Singh
Founder Chairman, Fortis Healthcare Ltd.
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Network
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Network
Fortis Healthcare Limited
HCC SC(8)
Greenfield(4)
Acquired(6)
OM(4)

• Fortis Hospital, Mohali
• Fortis Hospital, Noida
• Fortis Hospital, Amritsar
• Fortis Escorts Hospital, Jaipur

• EHIRC, New Delhi
• Fortis Escorts Hospital, Faridabad
• Fortis Escorts Hospital, Amritsar
• Fortis Escorts Hospital, Raipur
• Malar Hospital, Chennai
• Fortis Hiranandani Hospital, Mumbai

• Jessa Ram Hospital, Delhi
• FLRD Vasant Kunj, Delhi
• Khyber Medical Institute
• La Femme - GK, Delhi

• Kalyani, Gurgaon
• JNM College, Raipur
• Goyal Hospital, Jodhpur
• Arneja Hospital, Nagpur
• Kalra Hospital, Delhi
• Kota Heart, Kota
• Kamayani, Agra
• ISIC Vasant Kunj, Delhi

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Organisational Structure
FHL
HHPL40
Fortis
EHIRCL90
IHL100
FHtL100
Mohali
Delhi
Noida
Vasant Kunj
Vashi
Malar
Amritsar
Gurgaon
Jessa Ram
Faridabad
La Femme
Raipur
Shalimar Bagh
Jaipur
HCC SC
Amritsar
Khyber
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Available Bed Capacity
Fortis2567
FHL600
EHIRCL654
IHL965
FHTL200
HHPL148
Mohali300
Delhi331
Noida200
Vasant Kunj 200
Vashi148
Jessa Ram150
Amritsar166
Malar165
La Femme50
Raipur50
Faridabad250
Amritsar50
Jaipur350
Greenfield - 900
HCC SC - 107
Acquired - 1110
Total Beds 2,567
Khyber50
OM - 450
HCC - 107
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Operational Beds
Fortis1840
FHL393
EHIRCL558
IHL643
FHTL98
HHPL148
Mohali207
Delhi292
Noida177
Vasant Kunj 98
Vashi148
Jessa Ram74
Amritsar119
Malar148
Raipur40
La Femme38
Faridabad 210
Jaipur108
HCC SC - 107
Amritsar37
Greenfield - 529
Acquired - 957
Total Beds 1,840
Khyber37
OM - 247
HCC - 107
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Group Overview
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Core competence

• Providing tertiary and quaternary care on Centre
  of Excellence in the areas of
• Cardiac Sciences
• Neurological Sciences
• Orthopedics
• Gastroenterology
• Renal Sciences
• Boutique facility for women and child care
• State of the art accredited facilities.
• Highly trained medical and Para-medical staff.
• Strong IT systems
• Cost effective business model

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Strengths

• Focus on Medical and service excellence.
• In-house project execution capabilities on QTC
  parameters
• Pan India presence
• Hub and Spoke Model
• Management expertise and bandwidth
• Proven abilities to acquire and integrate.
• Experienced, dedicated and financially sound
  promoter group.

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• Performance

Quarter 1 FY 2008 09
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Update on the Current Projects

• Shalimar Bagh
• Started construction in August 07. Shell of the
  structure completed.
• Expected commissioning by Q4, 2009, of 250 beds.
• Gurgaon
• Excavation work completed, progressing as per
  schedule
• Expect commissioning by Q3, 2010 of 350 beds.
• Working with McKinsey to define medical strategy
  and CAPEX optimization
• Other Projects
• Malar Hospital Creating new Cardiac facility,
  Upgrading others facilities.
• Vashi Commencing operations in Q2
• NOIDA New Oncology Block

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Legal Taxation

• Escorts Matter
• Civil suit filed by Anil Nanda questioning the
  conversion of society into a company has been
  quashed by Honorable HC,
• The status quo has been removed giving
  operational flexibility to the Management
• Appeal filed by A. Nanda and is due for hearing
  on the September 30, 2008.
• Appeal filed before ITAT, Chandigarh for AY
  2001-02 against the capital gain tax demand (Rs.
  81.5 Cr) of erstwhile EHIRC, Chandigarh Society
  has been set aside.

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Lets talk about some financials
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Finance

• Key Statistics as at June 30 2008
• Net Worth Rs. 767 Crores
• Debt Equity 0.51
• Current Ratio 1.31
• EBIDTA() 15.7
• PAT() - 0.63 - Positive for the first time
• Ensuring
• Liquidity in Business
• Funds commensurate to Growth needs
• Manage cash well and tide over gaps
• Managing Working Capital
• Clear focus on Cash generation

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Consolidated

• Reports maiden net profit
• Growth higher than the industry expectation.
• _at_ 23 Excluding Delhi
• Delhi grows _at_ 6 over trailing quarter
• Highest ever EBIDTA for the quarter
• PSM initiatives bear results, contribution growth
  by 4 leads to an increase in consolidated
  EBIDTA to 16
• NABH accreditations to 3 more hospitals

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Revenue and EBIDTA
Rs. In Crores
Revenues
EBIDTA
EBIDTA grows by 45
Revenue grows by 10
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Profit and Loss Account
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Mohali Stable facility

• Becomes the first hospital in the country to be
  JCI and NABH accredited.
• Added Dental care as a specialty in the hospital
• EBIDTA() increases by 44 over previous year to
  24, highest in the Industry.
• PBT rises to 18 against 12 PY
• Confirms robustness of Business Model

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NOIDA Stable Facility

• Growth surpassing planned.
• Oncology as a super specialty being added.
• 2nd Phase to commence soon.
• Reports 100 increase in EBIDTA _at_ 23.
• Reports 11 net profit

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Faridabad Stable facility

• Re-positioned as Tertiary Care facility
• Launched Day Care Angiography and TKR Unit
• Highest Gross Margin _at_ 79
• EBIDTA _at_18
• New leadership in place effective Q-1 09

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Delhi Recovery path

• Performed maximum pediatric surgeries
• Revenue slowly inching towards earlier levels
• Occupancy steadily maintaining at 70
• 15 impact in Revenue from Q1 07
• PSM implementation reflects by increased
  Contribution margins to 70
• Results in EBIDTA margins to 10 against previous
  quarters 1

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Rs. In Crores
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Aggressive Growth Plan

• By FY 2012, Fortis plans to reach
• 40 Hospitals
• 6000 Beds
• Deep penetration, PAN India presence
• Gross Investment Rs. 2,700 Crores

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Thank You

• Fortis Healthcare Limited

Expanding footprint PAN INDIA
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Working Notes

• Presentation

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(No Transcript)
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Escorts - Amritsar

• Cardiac Program stabilized. Multi-specialty,
  including Joint Replacement program doing
  exceedingly well
• Reports positive PBT for the first time
• Increase in gross margins
• Higher revenues results in EBIDTA margins
  increase to 21 as against 10 earlier

Rs. In Crores
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250
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Jaipur Infant stage

• Achieves NABH accreditation within months of
  commencement of operations.
• Faster Revenue ramp-up _at_ 32 over the three
  quarters of operation.
• EBIDTA losses reduced in fourth quarter of
  operations.
• Expected to turn-around EBIDTA by the end of the
  FY 09 .

Rs. In Crores
13
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Notes

• Jessa Ram Cath Lab is being installed. Joints
  prog being established and OPD area revamped
• Highest joint replacement in VK and NOIDA in May
  08
• LF IVF program launched on scheduled (Sept
  2008).
• Vashi In discussion with NMMC. Hopeful of
  resolution by Aug 20. Alternate fallback option
  in terms of legal action in place.
• Malar Cardiac and Ortho plans will be executed
  by September
• Mohali Dr. TSMs effect yet to kick off.
  Dentistry launched as Super Specialty