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HealthCare Global Enterprises Limited March 2016

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Page 1: HealthCare Global Enterprises Limited March 2016 · Evolution of HCG as a Provider of Speciality Healthcare and India’s Largest Provider of Cancer Care¹ ¹ In terms of the total

HealthCare Global Enterprises Limited

March 2016

Page 2: HealthCare Global Enterprises Limited March 2016 · Evolution of HCG as a Provider of Speciality Healthcare and India’s Largest Provider of Cancer Care¹ ¹ In terms of the total

2

Disclaimer

THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART,

DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH

DISTRIBUTION IS UNLAWFUL.

This presentation has been prepared by HealthCare Global Enterprises Limited (the "Company"). These materials are not for publication or distribution, directly or

indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). These materials are not an offer

of securities for sale into the United States, Canada or Japan. Any securities of the Company have not been and will not be registered under the U.S. Securities Act of

1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of any securities of

the Company is being made in the United States.

The information contained in this presentation is for information purposes only and does not constitute or form part of an offer or invitation for sale or subscription of or

solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract,

commitment or investment decision in relation thereto in India, the United States or any other jurisdiction.

No person accepts any liability whatsoever for any loss howsoever arising from the use of this document or of its contents or otherwise arising in connection therewith. The

information set out herein may be subject to updating, completion, revision, verification and amendment without notice and such information may change materially.

Financial information contained in this presentation has been derived from the restated consolidated and standalone financial statements of the Company and have been

rounded off to the next integer, except percentages which have been rounded off to one decimal point.

This presentation contains certain "forward looking statements". Forward‐looking statements are based on certain assumptions and expectations of future events. Actual

future performance, outcomes and results may differ materially from those expressed in forward‐looking statements as a result of a number of risks, uncertainties and

assumptions. Although the Company believes that such forward‐looking statements are based on reasonable assumptions, it can give no assurance that such expectations

will be met. Neither the Company nor any of its advisors or representatives assumes any responsibility to update forward-looking statements or to adapt them to future

events or developments.

This presentation includes certain industry data and projections that have been obtained from industry publications and surveys. Industry publications and surveys and

forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance that the information is

accurate or complete. Neither the Company nor any of its advisors or representatives have independently verified any of the data from third-party sources or ascertained

the underlying economic assumptions relied upon therein. No representation or claim is made that the results or projections contained in this presentation will actually be

achieved. All industry data and projections contained in this presentation are based on data obtained from the sources cited and involve significant elements of subjective

judgment and analysis, which may or may not be correct. For the reasons mentioned above, you should not rely in any way on any of the projections contained in this

presentation for any purpose.

This presentation is based on information regarding the Company and the economic, regulatory, market and other conditions as in effect on the date hereof. It should be

understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its advisors or representatives are

under an obligation to update, revise or affirm.

Page 3: HealthCare Global Enterprises Limited March 2016 · Evolution of HCG as a Provider of Speciality Healthcare and India’s Largest Provider of Cancer Care¹ ¹ In terms of the total

3

Evolution of HCG as a Provider of Speciality Healthcare

and India’s Largest Provider of Cancer Care¹

¹ In terms of the total number of cancer treatment centres licensed by AERB as of May 31, 2015 (Source: Government of India, Atomic Energy Regulatory Board)

Network of 14 Comprehensive Cancer Centres Across India

Network of Fertility Centres Expanding Across India

1989

2005

2006

2007

2008

2013

1st cancer

centre in the

HCG network

Entry into the

clinical

laboratory

business

Established

Centre of

Excellence in

Bengaluru

Acquired

HCG Medi-

Surge in

Ahmedabad

Investment

by

PremjiInvest

Entry into

Feritility

Business,

Investment

by Temasek

Partnership

with CDC to

set up cancer

centres in

Africa

2015

Page 4: HealthCare Global Enterprises Limited March 2016 · Evolution of HCG as a Provider of Speciality Healthcare and India’s Largest Provider of Cancer Care¹ ¹ In terms of the total

4

Source: Call for Action: Expanding cancer care in India dated July 2015, published by Ernst & Young

0.9 1.1

1.6-2.2

3.4

1.7

Africa India(Reported)

India(Real)

China US

Estimated incidence of cancer in 2015 (mm)

Incidence of Cancer Across Countries

Rising Cancer Incidence in India…

Prevalence in 2015: 3.9mm

New reported cases in 2015: 1.1mm

Real incidence could be

1.5x-2.0x higher

Drivers of incidence

— Demographic changes

— Exposure to risk factors

— Narrowing diagnosis gap

Projected Cancer Incidence in India (mm)

3.9

7.1

2015 2020

Cancer Prevalance

Reported Cancer

Incidence1.1 2.1

Page 5: HealthCare Global Enterprises Limited March 2016 · Evolution of HCG as a Provider of Speciality Healthcare and India’s Largest Provider of Cancer Care¹ ¹ In terms of the total

5

Note: As of 31-Dec-20151 Including Bengaluru CoE; 2 Includes expansion of Ahmedabad and Cuttack Centres; 3 Expect to commence operations by Fiscal Years 2016,2017 and 20184 Number of available operational beds includes ICU beds and day-care beds (as applicable) but excludes self-care beds ; 5 Includes a WBRRS system6 PET-CT procedures are performed at the SMH DCA Imaging Centre, which is part of our comprehensive cancer centre in Delhi

Pan-India Presence Across 13 Cities and Towns in 8 States…

HCG’s Cancer Care Network in India

Bengaluru

Delhi

Ahmedabad

Bhavnagar

Shimoga

Hubli

Nasik

Mumbai

MangaloreChennai

Trichy

Ongole

Vijaywada

Cuttack

Ranchi

Centre of Excellence (CoE) (1)

Day Care Chemotherapy Centre (1)

Freestanding Diagnostic Centre (3)

Comprehensive Cancer Centre (14)1

Cancer Centres Under Development (12)

Gulbarga

Baroda

Vishakhapatnam

Kanpur

Kochi

Jaipur

Kolkata

Nagpur

Bengaluru

M S Ramaiah Nagar

Kalinga

Rao Road

Double Road

Koramangala

14 to 26 Comprehensive Cancer Centres3

902 to 1,817 Operational Beds4

17 to 31 LINACS5

31 to 63 Operation Theatres

7 to 16 PET CT Scanners6

Infrastructure Expansion Across The

Network2

Page 6: HealthCare Global Enterprises Limited March 2016 · Evolution of HCG as a Provider of Speciality Healthcare and India’s Largest Provider of Cancer Care¹ ¹ In terms of the total

6

High quality care accessible across India

HCG’s Approach to Cancer Treatment

Hub and Spoke model, wherein CoE in

Bengaluru serves as a “hub” to HCG’s other

cancer centres

Multi-disciplinary Approach

Identify and Adopt Appropriate

Technology

Standardised Clinical Protocols

Focus on Clinical Outcomes

Maintain Cost Competitiveness

219 oncologists across the HCG network1

1 As of December 31, 2015

Cyberknife Central Physics

PET-CT Triesta Team

Page 7: HealthCare Global Enterprises Limited March 2016 · Evolution of HCG as a Provider of Speciality Healthcare and India’s Largest Provider of Cancer Care¹ ¹ In terms of the total

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No. of Couples Seeking Infertility

Treatment in India

Milann – Fertility Opportunity

Source: Call for Action: Expanding IVF treatment India dated July 2015, published by Ernst & Young1All India Critical Care Hospital Ranking Survey 2016, published in Times Health, Times of India on January 29, 2016

Milann Well-Positioned to Capture Growing

Market

Highly Qualified Team led by Dr. Kamini Rao

Provides Comprehensive

Reproductive Medicine Services

4 Centres as of 31-Dec-2015

8,027 Patients Registered in FY2015

1,111 IVF Procedures Performed in FY2015

Ranked 1st in India in Fertility1

270

2015 2020

650 – 700

100

260

2015 2020

Annual (’000)

Annual (’000)

No. of IVF Cycles

(Annual)

Page 8: HealthCare Global Enterprises Limited March 2016 · Evolution of HCG as a Provider of Speciality Healthcare and India’s Largest Provider of Cancer Care¹ ¹ In terms of the total

8

2,162

2,702

3,407

4,553

5,242

2011 2012 2013 2014 2015

1EBITDA margin calculated by dividing the EBITDA before exceptional items by restated consolidated revenue (as above)

Financial Performance

Growth DriversConsolidated Revenues (INR mm)

(FY ending March 31) New Centres in HCG and Milann Network

Ramp in Recent Centres

Expansion at Mature Centres

Strong Financials

Revenue of INR 5,242 mm for FY15

EBITDA of INR 811mm with EBITDA Margin¹

of 15.5% for FY15

Page 9: HealthCare Global Enterprises Limited March 2016 · Evolution of HCG as a Provider of Speciality Healthcare and India’s Largest Provider of Cancer Care¹ ¹ In terms of the total

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Strategy and Outlook

Expand the Reach of Cancer Care Network in India

Expand Cancer Care Network to Africa

Upgrade and Strengthen Information Technology Infrastructure

Expand Network of Fertility Centres under Milann Brand