Fortis Healthcare Ltd.Fortis Healthcare Ltd.

Investor PresentationInvestor Presentation

Q2 Q2 –– FY 2010FY 2010

Safe HarborSafe 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.

“Fortis Healthcare Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a rights issue of its equity shares

with warrants and to file a Draft Letter of Offer with SEBI.” This presentation is not and should not be construed as an offer for sale within the United States of

any rights, warrants, equity shares or any other security of Fortis Healthcare Limited or as a solicitation of an offer to buy any of such rights, warrants, equity

shares or other securities. Securities of Fortis Healthcare Limited, including any offering of its rights, warrants, equity shares or any other security, may not be

offered, sold, resold or otherwise transferred within the United States absent registration under U.S securities laws or unless exempt from registration under such

laws. The offering of the securities of Fortis Healthcare Limited described in this advertisement has not been and will not be registered under U.S securities laws,

and accordingly, any offer or sale of these securities may be made only in a transaction exempt from registration.

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AgendaAgenda

��Operational HighlightsOperational Highlights

��Performance highlightsPerformance highlights

��Q&AQ&A

��Facility wise updatesFacility wise updates

3

��Highlights of the QuarterHighlights of the Quarter

Highlights of the quarterHighlights of the quarter

� Acquired 10 Wockhardt’s hospitals: 8 running and 2 under construction, adds 1,902 beds to its

network at a cost of Rs. 909 Cr..

� Persistence on quality continues, 2 hospitals received NABH Accreditation

� Receives accolades from FICCI for three network hospitals for excellence in Healthcare Delivery

and Patient Care & HR practices.

� Extends high end cardiac care to North-East through tie-up with GNRC, Guwahati

� Neuro Sciences Program at Noida strengthened – Installed intra operative CT, 3-D C’ARM etc.

� Renal Transplants program launched in Malar, Bengaluru, Mohali and Amritsar.

� IT outsourcing deal signed with HCL Infosystems

� Successfully raised Rs. 997 Cr. through Rights Issue

� Pre-hospital Emergency Services launch on schedule, first batch (75 ambulances) on road by Jan’

2010

4

Operational HighlightsOperational Highlights

� Network Operating Revenues: Q2 – Rs. 266.6 Cr. (+44%); H1 – Rs. 509.7 Cr. (+47%)

� Consolidated Operating Revenue: Q2 – Rs. 190.5 Cr. (+21%); H1 – Rs. 375.9 Cr. (+27%)

� Consolidated Operational EBITDA: Q2 – Rs. 29.8 Cr. (+44%); H1 – Rs. 57.9 Cr. (+66%)

� Net Profit (before exceptional items) for the quarter at Rs. 13 Cr, +255% over corresponding

period

� 11 hospitals in the network recorded all time high revenues

� Malar Hospitals grew 106% over corresponding quarter

� Escorts Delhi (+32%), Vasant Kunj (+34%), Jessa Ram (+44%), Escorts Jaipur (+52%) and

Fortis La Femme (+36%) also grew smartly

� Revenue from Cardiac, Ortho and Neuro Sciences grew by 31%, 24% and 44%, respectively

� Significant addition to medical talent – added 99 consultants to the network

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Wockhardt DealWockhardt Deal

� Landmark deal in Indian Healthcare space

� Executed the BTA in August’ 09 & conditions precedent to

be completed by December’ 09

� Through the deal, Fortis adds:

� 1902 beds to capacity for ~ Rs. 909 Cr (US$ 190 mn)

� 10 hospitals at premium locations in 3 metro cities –

Mumbai - 2, Kolkata – 3 & Bengaluru – 5.

� Talent pool of +650 Doctors and ~ 1300 nurses /

paramedics

� Nursing colleges (total – 450 candidates) linked to

operating hospitals, for availability of trained nursing

staff

� 2 JCI Accredited hospitals at Bengaluru and Mumbai

� 2 new hospitals at Yeshwantpur, Bengaluru (120 beds) and

Anandpur, Kolkata (414 beds), under construction, to be

operational in next 12-15 months.

� The combined network to provide one of the largest

Cardiac, Ortho and Neuro healthcare services

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Wockhardt Hospital, Mulund, Mumbai

Wockhardt Hospital, BG Road, Bengaluru

Strategic RationaleStrategic Rationale

� Geographical Complementarities

� Shared Value system

� Supports ‘Deep’ strategy for each region, with hospitals located in

metros (Mumbai, Bengaluru, and Kolkata)

� Enhances depth and width of talent and medical competence of the

group for supporting future growth plans

� Centre of Excellence in Cardiac, Neuro, and Ortho, further strengthens

dominant position :

� 3 top specialities account for 54% - 58% of total revenue

� Largest cardiac care and Joint replacement programs across

India

� Improved Purchase and Supply Management :

� Expect a significant reduction in cost of Bought-out Items

resulting in benefits in combined network

� Integrated marketing and customer acquisition

� Synergize regions for more efficient play and management efficiencies

� Significant savings in the employee costs

� Mumbai, Bengaluru allow leveraging combined network for Doctor

productivity maximization

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Wockhardt Hospital, Nagarbhavi, Bengaluru

Wockhardt Hospital, Kalyan, Mumbai

Combined Business Presence Combined Business Presence –– Pan IndiaPan India

8

Fortis City Centre (2006)

Fortis Mohali (2001)

La Femme (2005)

Jessa Ram (2003)

Fortis Noida (2004)

Vasant Kunj (2006)

Kalyani, Gurgaon (2006)

Fortis Escorts Jaipur (2006)

Fortis Modi Hospital, Kota (2006)

HHPL (Mumbai) (2007)

Escorts-Raipur (2006)

Fortis Malar (Chennai) 2008

Fortis, Bengaluru (2009)

Escorts-Delhi (2006)

Arneja Hospital, Nagpur(2006)

Birla Institute MRC, Gwalior (2006)

Goyal Hospital,Jodhpur (2006)

Escorts, Amritsar (2006)

Escorts, Faridabad

Ravindera Cath Lab, Hisar

Sadbhavna Medical & Heart Institute, Patiala (2006)

Kamayani, Agra (2006)

Saraswati Heart Care, Allahabad (2006)

ISIC, Vasant Kunj (2006)

Yashoda Hospital, Ghaziabad (2006)

Fortis Network Hospitals

SL Raheja (Mumbai) (2010)

Kolkata – 3 Hospitals

Bengaluru – 5 Hospitals

Mumbai – 2 Hospitals

Wockhardt Hospitals

Fortis Shalimar Bagh (2010)

Fortis Gurgaon (2010)

Fortis Wockhardt Total

Particulars No. Capacity No. Capacity No. Capacity

Greenfield 4 1,118 2 534 6 1,652

Brownfield 6 1,147 8 1,368 14 2,515

O&M 6 995 6 995

HCC’s/SC’s 13 72 13 72

Total 29 3,332 10 1,902 39 5,234

GNRC, Guwahati (2010)

International Projects

• Escorts-Amiri Diagnostic Heart Center, Afghanistan (FY2006)

• Mauritius (FY2009)

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��Performance HighlightsPerformance Highlights

Consolidated: FHL and Subsidiaries

Network: FHL, Subsidiaries, Associates and O&M Hospitals

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� Q2 FY 10 – Consolidated

� Operating Revenue - Rs. 190.5 Cr ���� 21%

� Operating EBITDA - Rs. 29.8 Cr ���� 44%

� Net Profit* - Rs. 13.0 Cr ���� 2.5x

� Q2FY10 - Network Income - Rs. 266.6 Cr. ���� 44%

� H1 FY 10 – Consolidated

� Operating Revenue - Rs. 375.9 Cr. ���� 27%

� Operating EBITDA - Rs. 57.9 Cr. ���� 66%

� Net Profit - Rs. 20.5 Cr. ���� 87%

� H1FY10 - Network Income - Rs. 509.7 Cr. ���� 47%

Snapshot Snapshot –– Financial PerformanceFinancial Performance

0

50

100

150

200

250

300

Consolidated Network

158

185 190

267

Q2FY09 Q2FY10

Rs. in Cr.

Q2FY09 Q2FY10

Occupancy 67% 71%

ARPOB (Rs. Mn) 7.5 8.6

+21%

+44%

*PAT above is excluding exceptional items of gain of Rs. 6. 4Cr in Q2FY09Operating Revenues

Dialysis

7,105

10,034

Cardiac

6,956

8,882

No. of ProceduresNo. of Procedures

11

+28%

Q2 FY 09 Q2 FY 10

Ortho

1,324

1,589 +20%

Neuro

442

626 +42%

+41%

Operating Revenue and PAT Growth Operating Revenue and PAT Growth –– QQ--oo--QQ

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Rs. in Cr.

139.4

157.5 161.1

172.6

185.4 190.5

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10

Operating Revenue

0.9

3.7

5.0

6.2

7.6

13.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10

PAT *

Consecutive positive returns

*PAT above is excluding exceptional items of gain of Rs. 6. 4 Cr. in Q2FY09 and our share of loss of Rs. 1.4 Cr in Malar hospital in Q4FY09

*

*

Summary Summary –– Consolidated Profit and Loss Consolidated Profit and Loss –– Q2FY10Q2FY10

Particulars Q2FY10

(Rs. Cr.) %

Q2FY09

(Rs. Cr.) %

Q-o-Q

Growth

Operating Revenue 190.5 100% 157.5 100% 20.9%

Other Income # 3.6 1.9% 9.2 5.8%

Total Income 194.1 166.7

Direct Costs 53.3 28.0% 46.4 29.5% 14.7%

Employee Costs 42.0 22.0% 36.9 23.4% 13.7%

Other Costs 65.4 34.3% 53.4 33.9% 22.4%

EBITDA 33.4 17.5% 29.9 19.0% 11.8%

Finance Costs 7.8 4.1% 12.2 7.7% -36.2%

Depreciation & Amortization11.8 6.2% 12.4 7.9% -5.0%

PAT before exceptional items 13.0 6.8% 3.7 2.3% 255%

Exceptional Items 0 0% 6.4 4.1%

PAT 13.0 6.8% 10.1 6.4% 28.8%

EPS for the quarter 0.57 0.44

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#Other income includes interest income and miscellaneous income

Summary Summary –– Consolidated Profit and Loss Consolidated Profit and Loss –– H1FY10H1FY10

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Particulars H1FY10 (%) H1FY09 (%) Growth (%)

Operating Revenue 375.9 100.0% 296.9 100.0% 26.6%

Other Income # 6. 7 1.8% 18.1 6.1%

Total Income 382.6 315.0 21.4%

Direct Costs 107.6 28.6% 88.3 29.7% 21.8%

Employee Costs 84.5 22.5% 72.9 24.6% 15.8%

Other Costs 126.0 33.5% 100.7 33.9% 25.0%

EBITDA 64.6 17.2% 53.1 17.9% 21.8%

Finance Costs 18.2 4.8% 23.1 7.8% -21.3%

Depreciation & Amortization23.1 6.1% 24.0 8.1% -3.8%

PAT before exceptional items 20.5 5.5% 4.6 1.5% 346%

Exceptional Items 0 0% 6.4 2.2%

PAT 20.5 5.5% 11.0 3.7% 86.7%

EPS for the quarter 0.91 0.48

#Other income includes interest income and miscellaneous income

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��Hospital PerformancesHospital Performances

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Hospital wise Revenue PerformancesHospital wise Revenue Performances

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37.939.9

26.0

28.2

50.3

66.3

16.2

19.6

10.2

15.5

9.912.3

5.17.0

18.4

24.6

7.5

15.3

0

10

20

30

40

50

60

70

Fortis Mohali Fortis NOIDA Escorts Delhi Escorts FBD Esc Jai Escorts Amr La Femme Vasant Kunj Malar

Q2FY09 Q2FY10

5%

8%

32%

21%52%

24%

36%

34%

106%

5.8

10.2

6.86.4 6.5

13.1

3.4

2.5

-0.2

2.6

1.8

3.7

0.7

1.6

2.6

6.2

1

2.4

(2)

0

2

4

6

8

10

12

14

Fortis Mohali Fortis NOIDA Escorts Delhi Escorts FBD Esc Jai Escorts Amr La Femme Vasant Kunj Malar

Q2FY09 Q2FY10

Hospital wise Operating EBITDAHospital wise Operating EBITDA

17

15

%

25

%

26

%

23

%

13

%

20

%

21

%

13

%

-2%

17

%

18

%

30

%

14

%

22

% 14

%

25

%

14

%

16

%

74%

5%

103%

108%

123%

134%

135%26% 15x

Thank You…Thank You…

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