Post on 03-Jul-2020
Max India LimitedMax India Limited
I t P t tiInvestor Presentation
September 2009
1
BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:INwww.maxindia.com
MAX GROUP - OVERVIEW
2
www.maxindia.com
Max India—“In the Business of Life”
M lti b i t F d l d i
“ IN THE BUSINESS OF LIFE ”
Multi-business corporate Focused on people and service
Life Insurance Healthcare Clinical ResearchHealth Insurance*Life Insurance
Protecting LifeHealthcare
Caring for LifeClinical Research
Improving LifeHealth Insurance
Enhances Life
74:26 JV with New York Life
70% ownership; 8 facilities with 770 operational beds
100% owned; 120 active sites
74:26 JV with BUPA Finance Plc, UK*
Other Business Corporate Social Responsibility
Niche high barrier polymer films & Leather Finishing Foils
Focus on healthcare, children and the environment
VISION
3Note: * JV agreement signed on Sep 3, 2008; Statutory approvals in progress
VISION
“To be one of India’s most admired corporate for service excellence”
Key Investment Highlights
St hi t f t hi d t i f l b i1 Strong history of entrepreneurship and nurturing successful businesses1
Opportunity to participate in the strong growth potential in “the Business of Life”2
Superior brand recall with a proven track record of service excellence4
On a consistent growth trajectory3
Highly experienced management team5
3.5 Million Customers…18,000 Employees…95000 Agents…1,200 Doctors6 , p y g ,6
Track record of successful international business partnerships over last 20 years 7
Electronic Mobile Communication MedicalPharmaceuticals
Electronic
Component
Mobile
Telephony
Communication
ServicesPlating Chemicals
Medical
Transcription
Hutchison COMSAT ATOTECH
4
Financial Performance
Rs CroreFY 06 FY 07 FY 08 FY 09
Operating Revenue 1,008 1,820 3,244 4,508
Investment and
Oth I *103 174 367 383 Total Revenue Trend
Other Income*
Total Revenue 1,111 1,994 3,611 4,891
Expenses 1,206 2,065 3,671 5,224
4000
5000
6000
Profit / (Loss) after
Tax**(95) (71) (60) (333)
FY 06 FY 07 FY 08 FY 09
637 591 1 537 1 312
3611
48912000
3000
Net Worth 637 591 1,537 1,312
Loan Funds 382 559 552 347
Net Fixed Assets 447 628 718 930
11111994
0
1000
FY 06 FY 07 FY 08 FY 09
Treasury Corpus 487 285 1,261 413
Life Insurance
(AUM)886 1,835 3,575 5,405
5
Consistent track record of strong growth
*Investment & Other Income, tax expense and net loss of FY06 is adjusted for income from stake sale in Hutchison Essar amounting to Rs. 427.63 Crore.** Losses in FY09 have increased on account of significant expansion undertaken in the life insurance business.
Growth Story
(Rs Crore)
Delivered robust growth in
each business segment despite
a recessionary global macro-
economic backdrop
Consistent growth in insurance
business on the back of
investments in distribution, high
employee productivity and
product innovation
Strong growth in healthcare
through establishment of
credible brand focused on
high service quality
6
Shareholding Pattern
Others
Promoter�Group��Analjit�
%
Others21.1%
33.6%
IFC
FII�� Others24.7%
IFC4.4%
Warburg�Pincus16.2%
Market Capitalisation – USD 1 Billion
7
As on Jun 30, 2009
Max India to Foray into Health Insurance
Health�Insurance�Premium�Growth�in�India (Rs crores)
12351983
28011683
1974
3127
3824
5511235
FY06 FY07 FY08 FY09Private Public
JV Update
• Management team on board and key executives recruited
• Registration application filed with the regulatory authorities• Registration application filed with the regulatory authorities
• Detailed business plan under review
• Product development, marketing plan, IT and customer operation plans under review
8
•The company is geared for a launch shortly once the regulatory approvals are obtained
MAX NEW YORK LIFE INSURANCE
9
www.maxnewyorklife.com
Parentage
Max India
• India’s leading conglomerate• Successful track record of
New York Life
• Fortune100 company with a track record of 180 years
building businesses
Expertise
• AUM of $ 224 billion
Expertise
• Local perspective of the Indian market• Managing the regulatory framework
• Global perspective on the insurance business• Products and Actuarial
10
Opportunity to participate in
the strong growth potential…
The story so far...• Strong industry growth from FY 04 – FY 09 (CAGR – 29%)
L lif i i (4% f GDP)• Low life insurance penetration (4% of GDP)
• Product innovation and emergence of unit linked, health and pension products
• Aggressive distribution expansion by private players
• Shift in market share from LIC
11
• Shift in market share from LIC
• Increasing competition within the industry
Source: IRDA website
Market Position
Insurance Sales (Rs. Crore)
S. No. Company Individual New Business Premium (Rs. Cr) Individual Policies (‘000)
Q1 FY10 Q1 FY09 Growth (%) Q1 FY10 Q1 FY09 Growth (%)
1 ICICI Pru 545 1,174 -54% 360 614 -41%
2 SBI Life 493 472 4% 160 154 4%
3 Reliance Life 435 414 5% 407 288 41%
4 Bajaj Allianz 434 743 -42% 357 498 -28%
5 Max New York 384 425 -10% 258 299 -14%
6 Birla Sunlife 369 481 -23% 330 169 95%
7 HDFC Standard 360 432 -17% 152 161 -5%
8 Tata AIG 175 214 -18% 150 149 0%8 Tata AIG 175 214 18% 150 149 0%
9 MetLife 134 175 -23% 48 45 7%
10 Kotak Life 122 212 -42% 53 108 -51%
Others 588 408 44% 270 239 13%
Private Total 4,039 5,150 -22% 2,545 2,724 -7%
LIC 3,722 3,350 11% 5,905 4,817 23%
Grand Total 7,761 8,500 -9% 8,450 7,541 12%M k t Sh
12
Market Share
of Pvt. Players52.0% 60.6% 30.1% 36.1%
Source: IRDA website
MNYL Advantages
• Focus on highly Productive agency model• Agency contributed to around 69% of sales in Q1’FY10• Conservation ratio at 85% in Q1’FY10
Agency Distribution
Q
• Strong portfolio of traditional and ULIP products• Recent foray into health and retirement products
Comprehensive Product Portfolio
Recent foray into health and retirement products• Long tenor products with a young customer profile
• Advise based insurance sales
Best in class training
• Over 800 trainers on board
• Selected as a “Super brand” – brand awareness score improves to 82% from 67% y-o-yBrand Awareness
p p y y• Ranked 2nd in BT-Cirrus Newsmakers survey of most written about private life
insurance company in the media
Investment Performance
13
• Outlook money ranked MNYL#1 in Slow, Medium and Quick Fund category
N b i Q1 FY 10
Agency Benchmarking
New business Q1 FY 10( Agency)( Rs crore)
Agents**Premium per
agent (Rupees)Rank
Case rate per agent
Rank
277 95,000 10,284 2 0.69 1
327 150,000 7,266 3 0.68 2
131 80,000 5,547 5 0.47 3
286 70,000 12,721 1 0.41 4
222 165,000 4,464 6 0.40 5
269 220,000 3,813 9 0.31 6
79 45 000 5 875 4 0 25 779 45,000 5,875 4 0.25 7
300 276,000 3,528 10 0.23 8
77 70,000 3,974 8 0.22 9
43 30,000 4,167 7 0.17 10
180 198,000 2,964 12 0.13 11
54 55,000 3,410 11 0.12 12
14
, ,
Source: IRDA Journal, media reports and company’s internal estimates
*In terms of highest new business premium (Agency)**Average Agents
Our Focus… Protection Oriented,
Longer Tenor Life Insurance
PROPORTION OF Tenure Age of Insured
3318.6WHOLE LIFE
PROPORTION OF
POLICIES (%, by
number)
PRODUCT TYPE (Years)
g
(Years)
43
34
29
2.8TERM 26
ENDOWMENT 12.1 22
0.3DEFERRED
ANNUITY 15 42
7.7MONEY BACK
UNIT LINKED
38
3616
14
54.8
HEALTH 35133.7
15
22 35
MNYL Average MNYL AverageAs on June 30, 2009
Embedded Value 2008-09
Amount in Rs. Crore
44750
2,284
Other
55
312
190
Market
Value
Movement
750
9
392
1,517
Other
Adjustments
Other
Operating
Variance
Unwind of
discount
Value of
New
Business
New Capital
Injection
190 9
Cost
Overrun
954
1,316
Implied NBM is 21.0% on APE*
(21.8% in 2007-08)
954
362
767
Opening EV Closing EV
Denotes increase to EV
362
Net Worth
16
Denotes decrease to EV Value of Inforce business
*APE – Annualized First Year Premium adjusted for 10% of Single Premium and 50% of limited pay products
Key Assumptions - Embedded Value
E i A tiEconomic Assumptions
Particulars AssumptionsCash / Money Market / TB 5.50 %
G Secs 7.00 %
Corporate Bonds 8.50 %
Equities 13.50 %
Inflation 5.0 %
Risk Discount Rate 13.00 %
Tax rate 14.2 % (12.5 % + 10% surcharge + 3 % education cess)3 % education cess)
Sensitivity• For change in risk discount rate by 0.5%, the value of new business would change by 4.9%
Operating Assumptions• Operating assumptions like mortality, morbidity and lapses are based on our own experience and
validated with industry / reinsurers experience
17
• Expense assumptions are based on our own expense projection model. Basis our current
expansion strategy, our expense break even happens in year FY 11-12
Key Metricsor
es)
ores
)
(Rs
cro
(Rs
cro
cror
es)
(Rs
c
18* Offices for FY09 includes 133 offices dedicated to rural business
* *Conservation ratio = Renewal premium for the current period / (First Year + Renewal Premium for the previous period)
F h i di ib i
The Way Forward
• Multi distribution business model with special focus on building superior agency force • Segment agency to enhance productivity• Leverage Bancassurance and grow partnership distribution to increase scale
Focus on strengthening distribution
• Innovative concept product launched at tapping a huge low income customer base• Successful pilot completed in Allahabad and Andhra Pradesh
Innovation – Launch of Max Vijay
• Activated 30+ retail distributors in UP• Peerless signed up as a distribution partner – encouraging early results
Mi i t t
To launch Universal Life products• Minimum return guarantee• Express issuance of policies – no medical tests• Funding of premium post death of life insured• Persistency bonus in last five policy years• Low entry premiums• Low entry premiums
• Outsource various customer related processes like call centre, policy issuance etc.• Optimization of headcount to lead to savings in manpower cost
Initiatives to rationalize costs
19
Optimization of headcount to lead to savings in manpower cost• Rationalize operating costs through operational efficiencies
MAX HEALTHCARE
20
www.maxhealthcare.in
Healthcare Industry Perspective
Healthcare industry
expected to grow at a
15% CAGR till 2012 to
contribute 6.1% of
Healthcare
Industry 2012 –
US$ 78 6 billicontribute 6.1% of
GDP
KEY HIGHLIGHTS
Re en e generated b pri ate hospitals c rrentl estimated at US$ 15 5 billion likel to increase to US$ 35 9 billion b
US$ 78.6 billion
• Revenue generated by private hospitals currently estimated at US$ 15.5 billion, likely to increase to US$ 35.9 billion by
2012
• Industry expected to add 1 million beds by 2012 – private sector to contribute 89% of these beds at an investment of
US$ 70 billion
90 % of private healthcare in unorganized sector but contribution of organized players is rising rapidly
21Source: FICCI & E&Y Report, 2007
• 90 % of private healthcare in unorganized sector, but contribution of organized players is rising rapidly
• Emergence of PPP model in healthcare delivery
Key drivers for growth
Comparative medical cost
32
100
48
65
40
60
80
100
US$
’000
Comparative�medical�cost
8.5 7 4.59.8
24
6.4
19.218
0
20
Open�Heart Knee�replacement Lap�Cholcystectomy�
Obesity�Surgery
Ind������UK������US Ind����UK������US Ind�����Uk������US Ind�����Uk� �����US
Rising health insurance penetration will make healthcare affordable
Cost differentials provide a huge untapped market for medical tourism related business opportunities
os. m
illio
n)(n
o
22Source: FICCI & E&Y Report, 2007, IRDA, B&K report, 2009, Crisil
Low healthcare spend presents opportunities for growth and expansion
Growing trend of lifestyle diseases need effective and continuing medical attention
Tertiary CareTertiary Care • Heart and Vascular
MHC – Model
Tertiary CareTertiary Care- Max Heart and Vascular Institute
- Max Super Specialty Hospital
• Neurosciences• Joint Replacement and
Orthopedics• Aesthetics and Reconstructive
surgery
Secondary CareSecondary CareMax Hospitals – 4
su ge y• Oncology
• Surgery and inpatient facilities• Mother and Child• High end diagnostics: MRI CTp
Specialty Centre – 2
P i CP i C
• High-end diagnostics: MRI, CT• Doctor consultation
Primary CarePrimary CareClinics /
Implants – 14
• Specialist doctor consult• Basic diagnostics like pathology
collection
23
Presence across the healthcare delivery value chain
Shareholding Pattern and Key Highlight
Factsheet
Healthcare facilities 8
Physicians 1200*Physicians 1200
Other support staff 3100
Patient base Approx. 790,000
Patient transactions Over 175,000 pm
Beds 770
ICU Beds 230
Operation Theatres 20
Cathlabs 3
MRI 4MRIs 4
CTs 4
B h h i h i l NABH di d
24*Includes over 600 physicians on Rolls
Both the tertiary care hospitals are NABH accreditedLab facilities at Max Super Specialty Hospital are NABL accredited
Key Strengths
• State-of-the-art infrastructure and facilities
Comprehensive and integrated healthcare services
Well established brand name throughout India• Has always adopted a quality conscious and patient centric approach• Has consistently improved its operational and clinical efficiency• Won numerous accolades including accreditations by the NABH and NABL• Extended range of services to offer primary secondary tertiary and quaternary care
Well established brand name throughout India
• Extended range of services to offer primary, secondary, tertiary and quaternary care
• Team of 1243 doctors complemented by 1569 nurses and 1472 other trained medical personnel and support staff *
Network of highly respected and leading specialists
personnel and support staff
• Centre's of excellence in cardiac, orthopedics and joint replacement, neurosciences, pediatrics , obstetrics & gynecology and aesthetic & reconstructive surgery
Leadership in key super-specialties in tertiary care
, obstetrics & gynecology and aesthetic & reconstructive surgery• Organ transplant, oncology, cord blood banking, stem cell research to be added
• DNB (Diplomate of National Board) & fellowship programsExtensive emphasis on medical training and education
25
• High quality nursing and paramedic care supported by nursing and paramedic college
*As of June 30, 2009
Key metricss)
(Rs
cro
res
s. 0
00’s
)(N
ios
26*Average revenue per occupied bed day has been calculated on inpatient revenue
Max Healthcare – Second Phase of Expansion
Max Hospital - Dehradun Max Hospital - Mohali Max Hospital - Bhatinda
• Multispecialty services
• Around 150 beds
• Specialities include Emergency and Trauma care,
• Tertiary Care Facility
• Around 300 beds
• Specialities include
• Tertiary Care Facility
• Around 300 beds
• Specialities include e N
CR
p g yNon-invasive and Invasive cardiology, Cardio-thoracic surgery, Joint replacement and Orthopaedics, Minimally Invasive Surgery, Neurosciences and related support services.
pOncology, Cardiac Services & Trauma Services
pOncology, Cardiac Services
Ou
tsid
Oct 2009 Feb 2010 Jan 2011 Sep 2011 Q3, FY 2011 FY 2014
Max Balaji Hospital
Patparganj
Max Hospital
South Block Saket
Max Hospital
Shalimar Bagh
Max Hospital
Greater Noida
• Tertiary Care Facility •Tertiary Care Facility • Multispecialty services • Multispecialty services
• Around 260 beds
• Specialities include Oncology, Cardiac Care, Orthopaedics, Neurosciences and Critical
• Around 90 beds
• Specialities include Oncology
• Around 300 beds
• Specialities include Interventional Cardiology, Cardio thoracic surgeries, Neurosciences, Trauma &
• Around 300 beds
• Specialities include neurosciences, trauma and critical care, urology, interventional cardiology
NC
R
2727
care critical care.gy
and cardio thoracic
Land already in place for the Second Phase of expansion
Current Funding Structure
EquityCapital
R 376 C
� Max India
� Current – Rs. 166 Crore
� Warburg Pincus – Rs. 140 Crore
� IFC, Washington – Rs. 50 Crore
Rs. 376 Crore � Other Foreign Investors – Rs. 20 Crore
Project Cost
Rs. 981Crore
Preference
Capital
Rs 250 Crore
� IFC, Washington
Rs. 250 Crore
� Indian Banks and Financial
Institutions� Current – Rs. 297 Crore� Future (tied-up) – Rs. 58 Crore
DebtFunds
Rs. 355 Crore
28
Rs. 355 Crore
MAX NEEMAN MEDICAL INTERNATIONAL
29
www.neeman-medical.com
Indian Clinical Research Industry
Indian CRO industry
is expected to leap
into a superior
growth trajectory in
the next few years
Key Highlights
• Huge patient population base with therapeutic diversity
Cost arbitrage• Cost arbitrage
• Huge talent pool
• Data processing infrastructure for bio-informatics
As per FICCI - Ernst and Young Survey Report 2008 and market information
• Favorable patent regulations to catalyze exponential growth and improving
MNMI—Contract Research Organization
Overview
• Full service contract research organization (CRO) with focus on Phase II, III & IV trails
• Service offerings include: Project management, Site management, Data management, including, bio-
t ti ti d t iti it i i d l h i t
Overview
statistics and report writing, monitoring services and supply chain management
• Confirmed order book of Rs 40 crore
• Business Development efforts focused on medium/small-sized biotech & pharma companies
Key Highlights
• Operational since 2001 and is profitable
Marquee Clients
•Revenue for FY09 over Rs. 15 crore, growth of 35 % yoy
•Patient retention rate at 98%
•4 successful US FDA GCP audits4 successful US FDA GCP audits
•Database of over 950 GCP/ICH trained investigators
•90% of employees out of 250 are physicians
31
•173 active sites across 22 cities
MAX SPECIALITY PRODUCTS
32
www.maxindia.com
Global BOPP Industry(K
TA
)
KEY DRIVERS• Global flexible packaging industry – US$ 50 bn, of which BOPP Films contribute70%
• Growth of flexible packaging Industry ~ 15% in India & 7 to 8% Globally
• Competitive advantage of BOPP films over other plastics and traditional products
• Shift from PET to BOPP. (Indian BOPP:PET products ratio around 1:2 against 3:1 globally)
• BOPP films in strong demand from consumer goods industries
• Organized retail and changing urban life styles to further expand demand for BOPP films
33
• Competitive cost advantage for export markets
Key Differentiators
CommoditySpeciality
(Preferred)
Metallised
FilmsCoated Films Foils
End Use
Packaging,
Industrial,
Textiles
Packaging,
Lamination
Packaging,
Lamination,
Industrial,
Packaging,
Industrial
Lifestyle,
Apparels
M S i lit P d t i h th k iOur Focus
Max Speciality Products is much more than packaging…
� Manufacturer of niche(high margin)and high barrier speciality polymer films
� Pioneer in introduction of value added products /technology in India
� Long term relationship with blue chip customers
34
Key Highlights
Consistent Track RecordConsistent Track RecordConsistent Track RecordConsistent Track Record
of Strong Performanceof Strong Performance……
(Rs
cror
es)
KEY HIGHLIGHTS
• BOPP lines of 29,000 TPA running at 100% utilization
• Fourth BOPP line with capacity of 20,000 TPA, expected to be operational by 2010 end
• Third thermal line planned with a capacity of 10,000 KSM
35
• Leather finishing foil business to more than triple its capacity to 5000 KSM by Q2’FY10
Thank You
36
Max India – Management Team
Mr. Analjit Singh
Chairman & Managing
Director
Mr. Analjit Singh has been the driving force behind Max Group’s sustained growth and success since the early80’s. Mr. Singh a prominent industrialist is an alumnus of Doon School; University of Delhi, and the GraduateSchool of Management, Boston University
Mr. C. V. Raghu
Director – Legal &
Regulatory
Mr. Raghu brings with him a rich and varied experience of 22 years, of which, 14 years have been spent withAmerican Express Bank. Prior to that, he has worked with Hindustan Lever Limited and CII. He holds a BachelorsDegree in Law from Faculty of Law, Delhi University.
M M hit T l Mr Talwar brings rich and varied experience of 28 years with The Oberoi hotels Bank of Nova Scotia GrindlaysMr. Mohit Talwar
Director – Corporate
Development
Mr. Talwar brings rich and varied experience of 28 years with The Oberoi hotels, Bank of Nova Scotia, Grindlays& Standard Chartered. In his last assignment with Standard Chartered he was responsible for developingstrategy, revenue & economic profit across products. Mr. Talwar is a post-graduate in Arts and HospitalityManagement.
Mr P Dwarakanath M D k th b i i h d i d i f 37 i il f GSK Gl S ithKli CMr. P. Dwarakanath
Director - Group Human
Capital
Mr. Dwarakanath brings rich and varied experience of 37 years primarily from GSK GlaxoSmithKline ConsumerHealthcare and is currently the non Executive Director of GSK. He has done his Post Graduate diploma inPersonnel Management and Industrial Relations, B.Sc and Bachelor of Law.
M S j th R tMs. Sujatha Ratnam
Chief Financial Controller
Ms. Ratnam brings with her over 15 years of rich and varied experience with Jubilant Organosys and Tata Motorsand has expertise in the field of financial restructuring and fund raising. She is a Chartered Accountant.
Mr. V KrishnanMr. V. Krishnan has more than 18 years of rich experience in Corporate Regulatory and Compliance matters andhas been closely involved in establishing joint ventures mergers & acquisitions and business restructuring of Max
37
Company Secretaryhas been closely involved in establishing joint ventures, mergers & acquisitions and business restructuring of MaxGroup. He is a member of the Institute of Company Secretaries of India.
MNYL – Management Team
Mr. Rajesh Sud –
Managing Director
Mr. Sud, a founder member, has been instrumental in establishing MNYL’s distribution footprint across India. Today
MNYLs Agency model is recognized as “best-in-class”. Prior to joining MNYL, he was the CEO & Managing Director of
Esanda Finance Ltd (a financial services subsidiary of ANZ Grindlays Bank)and CEO
Esanda Finance Ltd (a financial services subsidiary of ANZ Grindlays Bank)
Mr. Rajit Mehta –Mr. Mehta, a founder member, has led and built the HR function of MNYL and provided overall HR direction in line with
business strategy. He has also played a significant role in managing change / transition agendas both at a functional
Chief Operating
Officer
gy p y g g g g g
and organizational level while facilitating strategic initiatives. Prior to joining MNYL, he was Director - Human Resources
at Bank of America, India
Mr. John Poole
Chief Actuary
Mr. Poole, is both Chief Actuary and Appointed Actuary for MNYL. He has been instrumental in building MNYLs
actuarial capability and implementing best practices. Prior to this assignment, he worked with AMP in various key
management positions including CFO and Actuary
Mr. Sunil Kakar
Senior Director &
Mr. Kakar joined MNYL in March 2001 and is in charge of Finance, Accounts, Investments and Risk Management.
Under his leadership investment portfolio continues to generate top quartile returns. Prior to joining MNYL, Sunil was
38
Chief Financial Officer with Bank of America, India as Vice President (CFO)
Road Map to Becoming India’s Most Admired
Life Insurance Company
Key Public MessagesKey Public MessagesKey Public MessagesKey Public Messages
� A trusted life insurance specialist� Customer centric� Financially responsible and strong� A great place to work� An admired member of the community
VISIONVISION Become the most admired Life Insurance Company in India
MISSIONMISSION
� Part of top quartile newLife Insurance Companies� National Player� Brand of FIRST choice
� An admired member of the community
KEY KEY WHAT –Comprehensive suite ofproducts, competitive pricing, extensive distribution, persistency customer service excellence
� Employer of Choice� Principal of Choice for Agents
Key DifferentiatorsKey Differentiators
� Financial Strength & Security
� Quality of agents
� Flexible ProductsOBJECTIVESOBJECTIVES
STRATEGIESSTRATEGIES
persistency, customer service excellence,profitable portfolios
HOW –TalentedPeople, Professional & Productive Agents, Performance Metrics, Leverage Technology, Teamwork, Customer Centric Innovative Distribution and Marketing
e b e oduc s
� Service Excellence
� Fair Terms of Business
Customer Centric, Innovative Distribution and Marketing
INITIATIVESINITIATIVES What-When-Who-How-Cost linkage plans at Departmental and Individual levels
VALUES & BELIEFS OPERATING PRINCIPLES METRICS & PERFORMANCE
� Excellence� Honesty� Knowledge� Caring� Integrity
VALUES & BELIEFSSTANDARDS MGMT PROCESS� Customer comes first
� International quality standards� Do it right the first time� Fact based decisions� Bias for result oriented action� Financial strength & discipline
� Input� Output� External� Internal
Ab l t
� GMPR Ratings� TEC/TTR – Templates� Primary, Shared and
ContributoryB l d d
39
Integrity� Teamwork
Financial strength & discipline� Direct and open communication� Respect Max & NYLI values & parentage� Fun at work
� Absolute� Ratios
� Balanced scorecard� Core, Functional and
Leadership Competencies
MNYL – Key Highlights
Key Business Drivers Unit Quarter Ended Y-o-Y
Growth
Year Ended Y-o-Y
Growth Jun-09 Jun-08 Mar-09 Mar-08
a) Sales Value (Annualized first year premium) Rs. Crore 441 541 -18% 2,096 1,676 25%
b) Average case size Rs. 22,285 22,145 1% 19,172 21,923 -13%
c) Case rate per agent per month No. 0.54 1.16 -53% 1.05 1.46 -28%
d) Number of agents No. 94,594 46,851 102% 84,355 36,896 129%
e) Net agents added No. 10,239 9,955 47,459 11,848
f) Conservation ratio* % 85% 89% 82% 83%
g) Gross written premium income Rs. Crore
First year premium 389 424 -8% 1,594 1,326 20%
Renewal premium 677 369 83% 2,014 1,117 80%
Single premium 52 72 -28% 249 272 -8%
Total 1,118 865 29% 3,857 2,715 42%
h) Paid up Capital Rs. Crore 1,782 1,232 45% 1,782 1,032 73%
i) Individual Policies in force No. 2,661,592 1,985,626 34% 2,578,476 1,750,725 47%
40* Conservation Ratio = Renewal Premium for the current period / (First Year Renewal Premium for the previous period)
j) Sum insured in force Rs. Crore 102,963 77,650 33% 93,593 66,620 40%
MHC – Management Team
Dr. Pervez Ahmed
CEO and Managing
Director
Dr. Ahmed has been an active participant in healthcare related fields especially development of standards of critical
care medicine in New York. Since 1977 he has been involved in academic Medicine at SUNY, Downstate. He has
also been involved in many healthcare activities in India dating back to 1980. Dr. Pervez Ahmed, MBBS from AFMC,
Pune, has completed Residency in Internal Medicine and Fellow-ship in Cardiology in New York. He is Board certified
in Internal and Cardiovascular disease and a Certified Medical Director.
Mr. Arvind Kakar
Vice President Finance
Mr. Kakar is a Chartered Accountant with over 18 years of experience in service industries and having a high focus in
the areas of financial services and healthcare. He has been associated with the Max group since 2000.
Mr. Sanjay RaiMr. Rai brings with him more than 28 years experience in Sales & Marketing in service and manufacturing industries.
H h li k d ith Th Ob i d ITC Li it d H l d d i l h l t MDirector Marketing &
Customer Management
He has earlier worked with The Oberoi group and ITC Limited. He leads and manages various sales channels at Max
Healthcare and is also responsible for Branding, Customer Relationship Management and Direct marketing, PR
function and for service excellence. He is an graduate in Economics from Mumbai University,
Mr. Surajit Banerjee
Di t H
Mr. Banerjee has over 23 years experience in Human resource and worked with reputed organizations like Spice Jet,
Hi d t L E t I di H t l R kitt B k i Li it d Bh ti C ll l t H i t d t i lDirector Human
Resource
Hindustan Lever, East India Hotels, Reckitt Bencksier Limited, Bharti Cellular etc. He is an post graduate in personnel
management and industrial relations from XLRI.
Dr. D. P. Saraswat
Dr. Saraswat has rich and varied experience of 36 years including 22 years in the Indian Army where he held Lt. Col.
rank. Thereafter he continued his career with Manipal Hospital as COO & Medical Director. He also held the position
f H d & P f D t f H it l Ad i i t ti i M i l U i it H i M B B S f S N M di l C llRegional Director of Head & Professor Dept. of Hospital Administration in Manipal University. He is M.B.B.S from S. N. Medical College,
Agra and MHA from A F M C, Pune.
Dr. Dilpreet Brar
Regional Director
Dr. Brar was associated with the Indraprastha Apollo Hospitals and Hero Honda group of companies prior to joining
Max Healthcare in 2002. She is responsible for business operations of Saket, Panchsheel and Gurgaon Hospitals. Dr.
Brar is a graduate from Govt Medical College Patiala She secured a post graduate diploma in hospital management
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Regional Director Brar is a graduate from Govt. Medical College, Patiala. She secured a post graduate diploma in hospital management,
and completed a certificate course in Health Insurance from Indraprastha Apollo hospitals, New Delhi.
MHC – Key Physicians
Padma Shri Dr. Rustom Phiroze Soonawala
MD, FRCS, FRCOG
Chairman, Obstetrics & Gynaecology
� Eminent and Internationally renowned Obstetrician & Gynaecologist.
� Former President of the Federation of Obstetricians and Gynaecologists
Dr. Praveen Chandra
MD, DM,FAPSIC, FACC, FSCAI, FESC
Director – Cardiac Cath Lab
� Internationally Renowned Cardiologist.
� First to use new devices like Rotarex,Kensey Nash DPD in the country.
Dr S K S MaryaDr. S.K.S. Marya
M.S., DNB, Mch, FICS
Director – Max Institute of Orthopedics & Joint
Replacement
� Renowned Joint Replacement Surgeon having 30 years experience.
� Pioneered bilateral Hip and Knee Joint replacement.
� Author and teacher par excellence.
Dr. Ajaya Nand Jha
MS, FRCS
Director – Max Institute of Neurosciences
� Renowned Neurosurgeon with rich and varied experience including stints with
Manchester Royal Infirmary, P.D. Hinduja National Hospital, Indraprastha Apollo
Hospital.
� First to use image guided Neurosurgery in the country.
Fi t t d di t d X k if (R di ) d i t ti MR ith iDirector Max Institute of Neurosciences � First to use dedicated X-knife (Radiosurgery) and intra-operative MR with image
guidance for Brain Tumour Surgery.
Dr. Anurag Krishna
MS, MCh., FAMS
� Over 20 years of experience in Paediatric surgery including complex congenital
malformations
P bli h d 50 i tifi i l di ti l d i t ti l j l
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Director, Paediatrics and Paediatric Surgery � Published over 50 scientific papers in leading national and international journals
� Has served as Member of the Board of Management of Sir Ganga Ram Hospital.
MHC – Vision / Mission
B ild T tPASSIONK Diff ti t
VISION
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.
• Create exceptional standards of Medical & Service Excellence• Care provider of FIRST CHOICE• Principal Choice for Physicians
Build TrustPASSIONKey Differentiators
� Focused NCR centric delivery – for operational excellence
� Leadership in 5 super-specialties in tertiary care
-‘Star’ physicians supported by a group of high quality physicians
� Ethics
� Memorable brand experience
- ‘Star’ and quality physiciansMISSION
GOALS • Profitable without profiteering.• Seamless linkage between secondary and tertiary care.
• Principal Choice for Physicians• Ethical Practices • Create International Centre of Excellence for select Super Specialties.• Safety – Patient, Customer, Staff
Star and quality physicians
- Infrastructure and equipment
- No surprises – cost of care, pricing, medication
- Signage
- Look – feel – smell - touch
� High quality nursing and paramedic care supportedby nursing
and paramedic college
KEY
OBJECTIVES
STRATEGIES
WHAT –Medical USP’s ; Best in class ; Comprehensive care ; Convenience & accessibility ; Seamless service ; Patient records ; Consistent and customised care ; Service excellence ; Preventive health ; Caring place to work.
HOW –Train train train ; Partnership with Medical community ; Principalchoicefor physicians ; Never ending focus on medical and service excellence ; Build lasting customer relationships ;No franchising.
• WHAT- HOW - WHEN - COST - LINKAGE
� Technology and IT
VALUES & BELIEFS OPERATING PRINCIPLESMETRICS &
STANDARDSPERFORMANCEMGMT PROCESS
INITIATIVES
WHAT- HOW - WHEN - COST - LINKAGE• Shared responsibility with single accountability.• Unique approach through: - International benchmarking.- Walk the Talk - IT Capability- Medical – Management Alignment.- Rehearse rehearse- Cost Efficiency- Train train train. - Mystery customers- Attrition Management
Key Public Messages
� Medical Excellence
� Service Excellence – Total Experience
� In your community - near you STANDARDS MGMT PROCESS
• Competence rating• Potential analysis• PSC model• Balanced scorecard• Performance / Risk linked
reward.
• Caring • Excellence• Integrity• - Personal• - Professional• Accountability• Openness/Transparency
• Courtesy & Caring always• Customer comes first• Do it right first time• International image standards• Direct & open communications • Create trust• Compliance• Fun at work
• JCIA Accreditation • ISO 9001 : 2000• Integrated Management System• Credentialing / Grant ofprivileges• Employee productivity• Employee Engagement survey• Service Dashboard - Sparsh
In your community near you
� High-end tertiary care in Private
� sector
� Comprehensiveness
� Referral system – National &
� International
� Value for money
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p p y• Teamwork• Win-win partnerships
• Fun at work• Reward & Recognition
Service Dashboard - Sparsh• NABH/NABL Accreditation• Adverse event Measurement.
� Corporate Social Responsibility
MHC – Accreditations and Awards
Express Healthcare Excellence
Awards(2007 – 08)
“Innovative Marketing Practices”ISO 14001:2004 at Pitampura
ISO 9001:2008 Recertification at
Max Heart & Vascular Institute
First in North India to get NABH for MHVI & MSSH
Max Heart & Vascular Institute,
Noida, Pitampura, Panchsheel
Park &Home Office
“Best Managed Healthcare Program (Health Insurance/TPA)”
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Max Healthcare (MHC)
Quarter Ended G h Year Ended G hKey Business DriversUnit
Quarter Ended Growth(%)
Year Ended Growth(%)Jun-09 Jun-08 Mar-09 Mar-08
a) Revenue Rs. Crore
Inpatient Revenue 91.3 78.1 17% 329.0 301.5 9%
Outpatient Revenue 26.4 21.4 23% 93.6 71.0 32%
Total 117.7 99.5 18% 422.6 372.5 13%
b) Profitability
Contribution Margin Rs. Crore 66.9 54.5 23% 238.9 197.7 21%
Contribution (%) % 56.8% 54.8% 56.5% 53.1%
EBITDA R C 6 4 5 1 25% 28 7 19 6 46%EBITDA Rs. Crore 6.4 5.1 25% 28.7 19.6 46%
EBITDA (%) % 5.4% 5.1% 6.8% 5.3%
Cash Profit Rs. Crore (1.1) (2.8) 61% 1.0 (11.8) 108%
c) Patient Transactions No.
Number of Procedures- Cardiac Care 2,124 1,866 14% 7,437 7,648 -3%
- Orthopaedics 585 561 4% 2,153 2,004 7%
- Neurosciences 239 204 17% 874 657 33%
- Obstetrics & Gynaecology 1,305 1,102 18% 4,861 4,171 17%
Others 2 902 2 471 17% 9 669 8 214 18%- Others 2,902 2,471 17% 9,669 8,214 18%
Medical Admissions 6,804 5,869 16% 26,109 23,838 10%
Outpatient Registrations 513,181 459,863 12% 1,899,880 1,592,804 19%
d) Average Operational Beds No. 727 700 4% 712 662 8%
e) Average Occupancy % 69.4% 61.5% 65.1% 65.8%
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f) Average Length of Stay No. 3.3 3.2 3.3 3.4
g) Average Revenue per Occupied Bed Day Rs. 19,873 19,930 19,433 18,914 3%
Note: The results presented above are for Max Healthcare’s network of hospital
MHC Tertiary Care Facility, Saket
[South Delhi]
MAX HEART & VASCULAR INSTITUTE(December 2004)
� 200 patient beds
MAX SUPER SPECIALITY HOSPITAL
(May 2006)
191 b d (i l di 63 i i l b d )� 200 patient beds
� 3 OTs, 2 Cardiac Catheterization Labs
� Post Surgery Critical Care Unit
� High Dependency Unit
� Apex and Advanced Coronary Care
� Exclusive well equipped ‘Observation Bay’ and
� 191 beds (including 63 critical care beds)
� 7 OTs, 20 Consult Chambers
� Tower Specialties – Orthopaedics, Neuro
Sciences, Obstetrics & Gynaecology, Paediatrics� Exclusive well equipped Observation Bay and
‘Post Cath. Recovery’
� Nuclear Diagnostic Services with Variable Angle
Dual Head Gamma Camera
� Centralized Emergency Command with
Advanced Cardiac Life Support Ambulances and
and Aesthetic & Reconstructive Surgery
� Brain Suite (first in Asia) and Intra Operative MRI
� DSA Lab (for Neuro Sciences)
� Emergency Services
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Advanced Cardiac Life Support Ambulances and
Air Evacuation Service
� High-end General Surgery
� High end Radiology facilities with 64 slice Cardiac
CT
MHC Secondary Care Facility
[ Delhi ]
PITAMPURA
(February 2002)
(N th D lhi)
PATPARGANJ
(May 2005)
(E t D lhi)(North Delhi)
� 90 inpatient beds
� 2 OTs
� Lithotripsy
M h d hild
(East Delhi)
� 154 inpatient beds
� 3 OTs
� Mother and child care
� Mother and child care
� Non-invasive cardiology
� Plastic and reconstructive
surgery
� Physiotherapy
� Orthopaedics
� General surgery
� Critical care including dialysis
� Non-invasive cardiology (incl.
cardiac catheterization lab)
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Physiotherapy
� Full range diagnostics
� PHP, OPD and Dentistry
cardiac catheterization lab)
� ENT, ophthalmology
� Other allied specialties
MHC Secondary Care Facility
[ Suburb of Delhi ]
NOIDA
(August 2002)
GURGAON
(J l 2007) (August 2002)
� 33 inpatient beds
� 2 OTs
� Mother and child care
� Non invasive cardiology
(July 2007)
� 102 inpatient beds
� 3 OTs
� Ophthalmology (anterior and posterior)
W d hild (i l di i f tilit ) � Non-invasive cardiology
� Laparoscopic surgery
� Orthopaedics
� ENT, ophthalmology
� Urology and nephrology
� Woman and child (including infertility)
� Medical & surgical intensive care
� Orthopaedics
� Nephrology and urology
� Aesthetic and reconstructive surgeries
48
gy p gy
� Full range diagnostics
� PHP, OPD and Dentistry
g
� General and minimally invasive surgeries
� PHP and OPD
MHC Speciality Centres – Panchsheel
[South Delhi]
OPTHALMOLOGY AND DENTAL CARE
(November 2005)
� Lasik OPD and diagnostics
SPECIALIST CONSULTS AND
HIGH-END DIAGNOSTICS
(August 2006)
� GP and specialist consults� Lasik, OPD and diagnostics
� Dental – 3 chambers
� Support services and offices
GP and specialist consults
� Diagnostics
� Neurology (EEG and EMG)
� Preventive health and chronic care
� Physiotherapy
49
y py
� Minor procedures and emergencies
� IVF
U it G th G th
MSP – Performance Snapshot
Key Business Drivers
Unit Quarter ended Growth
(%)Year ended Growth
(%)
Jun-09 Jun-08 Mar-09 Mar-08
a) Sales Quantity – BOPP Tons 7,030 6,809 3% 28,503 23,929 19%
b) Revenue Rs. Crore 79.8 97.8 -18% 370.4 306.0 21%
c) Profitability:
Contribution Margin* Rs. Crore 30.7 34.4 -11% 136.8 119.9 14%
% 38.5% 35.2% 36.9% 39.2%
EBITDA Rs. Crore 10.7 13.9 -23% 51.4 49.6 4%
% 13.4% 14.2% 13.9% 16.2%
PBT Rs. Crore 4.8 7.1 -32% 24.8 24.5 1%
%
50
% 6.0% 7.3% 6.7% 8.0%
Disclaimer
This presentation has been prepared by Max India Limited (the “Company”). No representation or warranty, express or implied, is made and nop p p y ( p y ) p y, p p ,
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 provideThis 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
i d h i f ti t ti t t b li d h i b th i d b b h lf f th C fgiven 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.
This presentation is highly confidential, and is solely for your information and may not be copied, reproduced or distributed to any other
person in any manner. Unauthorized copying, reproduction, or distribution of any of the presentation into the U.S. or to any “U.S. persons” (as
51
defined in Regulation S under the Securities Act) or other third parties ( including journalists) could prejudice, any potential future offering of
shares by the Company. You agree to keep the contents of this presentation and these materials confidential.
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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Website: www.maxindia.com