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Fortis Healthcare Ltd. Interim Results – FY2008 – 09. Corporate Presentation. Quarter 3 & 9 Months. Safe Harbor.
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Fortis Healthcare Ltd. Interim Results – FY2008 – 09 Corporate Presentation Quarter 3 & 9 Months
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.
Agenda • Recent Developments • Result Highlights • Hospital Performances • Legal Update
Recent Developments • Board approval for raising money by way of Rights Issue of Rs. 1000 Cr. • Funding for on going green field projects • Future expansions • Vashi gets Operating license from NMMC. Commences IPD services • Acquires majority stake in Clinique Darné, Mauritius along with financial partner CIEL • Acquires controlling stake in RM hospital, Bangalore • Signs up O&M Contract with RNMCS, Kota, Rajasthan • Civil Construction for Oncology Block at NOIDA started • MOU Signed with International Oncology Services Pvt. Ltd. • Cardiac Program launched at Malar Hospital in December • Awarded PPP project with Delhi Government for Ambulance services in NCT
Foray to International Arena - Mauritius • Strategically located in the Indian Ocean, between Asia, Africa and Australia and attracts 0.9 million high end tourists p.a. growing @ 7.8%. • Fulfills the Criteria of “Low Risk” exposure, Low Investments and easier cultural fit • Potential Medical Value Tourism & Medical Tourism • Friendly Tax Structure • Business Friendly Environment:
About Fortis Clinique Darne • The hospital was revamped and rebuilt in the year 1997 • Located in the up-market locality of Floreal and surrounded by residential localities. • Spread over 6 Acres of Land with Built up area - 115,000 sq ft, with potential to expand • Installed bed capacity of 120, Catering to the high end customers of Mauritius and is also called as the ‘Hospital for the Whites’. • Only Cardiac care hospital in the private sector in Mauritius. Other Medical specialties include Neuro Sciences, Nephrology Oby & Gynae, Oncology, Internal Medicine, Plastic & Cosmetic Surgery. • It has the 1.5 (Tesla) MRI, 64 slice CT and a CT.
Clinique Darne Fortis Clinique Darne
Clinique Darne Fortis Clinique Darne
Fortis Hospital, Seshadripuram • Second hospital for Fortis in Southern India and first in Bangalore • Operational since in April 2007 • Land Area • Main Hospital ~ 8,000 Sq Ft • Additional Land available ~ 6,500 Sq Ft • No of Beds 100, expandable to 200 • Pilot to gauge the Bangalore Market • Total Stake - 67.23% as on date. • Capex plans for expansions being firmed up • Current Specialties: Nephrology, Urology & Critical Care. • Specialties proposed: Cardiac Sciences, Renal Sciences & Neuro Sciences
Fortis Modi Hospital, Kota • Second Hospital in western India • Operational since November 2007 • Specialties : Cardiology, Endocrinology, Nephrology, Neurology, Orthopedics & Trauma, Respiratory Medicine, Urology, etc. • Land Area ~ 6,120 Sq Ft • Bed Capacity - 200 with Operational Beds – 100 • Serve the catchments in Vadodara, Jodhpur, Indore, Bhopal & Gwalior • O&M arrangement with RNMCS • Year O&M Fees Min Guarantee Fees • 1st 4% Nil • 2nd 4% Rs. 20 Lacs/annum • 3rd & 4th 5% Rs. 20 Lacs/annum • 5th & thereafter 6% Rs. 20 Lacs/annum
Kamayani SC, Agra (2006) Saraswati Heart Care, Allahabad (2006) Sadbhavna Medical & Heart Institute, Patiala (2006) Fortis Noida (2004) Fortis City Centre (2006) Jessa Ram (2003) Escorts-Amritsar (2006) La Femme (2005) Vasant Kunj (2006) Fortis Mohali (2001) Yashoda Hospital, Ghaziabad (2006) ISIC SC, Vasant Kunj (2006) Escorts-Faridabad (2006) Kalyani HCC, Gurgaon (2006) Escorts-Delhi (2006) Ravindera Cath Lab, Hisar Fortis Jaipur (2008) Fortis Modi Hospital, Kota (2009) Goyal Hospital SC,Jodhpur (2006) Birla Institute MRC, Gwalior (2006) Escorts-Raipur HCC (2006) HHPL (Mumbai) (2007) Arneja Hospital SC, Nagpur(2006) Fortis, Bangalore (2009) Fortis Clinique Darné, Mauritius (2009) Fortis Malar (Chennai) 2008 Escorts-Amiri Diagnostic Heart Center, Afghanistan (2006)
Result Highlights Consolidated: FHL and Subsidiaries Network: FHL, Subsidiaries, Associates and O&M Hospitals
Snapshot – Executive Summary • Consolidated Revenue Growth • @ 33% for Quarter on Quarter • @ 22% for 9 Months Y-o-Y • EBIDTA grows at 77% over Y-o-Y and stands at Rs. 83.7 Crs. • Net Profit @ Rs. 5.1 Crs. for Q3 – FY09 grows 39% over the trailing quarter* • Operating revenues for Network hospitals grows to Rs. 542 Crs. over 9 Months Y-o-Y @ 24% *Excluding exceptional items
Snapshot – Executive Summary Key Performance highlights: • Blood Banks at Delhi (Escorts) and NOIDA get NABH accreditations. • Malar - Renowned Dr. K R Bala Subramanian joins in. Revenues in December - Rs. 2.75 Cr (Highest). 3rd quarter of sequential growth • Delhi (Escorts) crosses Rs. 20 Cr/month Revenue mark. • Noida – Eminent Orthopedic surgeon, Dr. P.S. Maini joins, along with his team. Orthopedic department further strengthens • Mohali – Touched new high in number of Angioplasties and Cardiac Surgeries • La Femme – Launch of In-Vitro Fertilization (IVF) program. Maximum Deliveries – 117 and highest ARPOB for any Fortis Group Hospital (Rs. 1.18 Cr on an annualized basis).
Operating Revenues – Across Fortis Hospitals Rs. in Crores +22% +24% +35% +33% FHL Network FHL Statutory
Summary – Consolidated Profit and Loss – Y-o-Y Rs. in Crores # Includes non-operating Income * PAT is after exceptional items (Rs. 6.40 Cr for 9 months FY 09)
EBIDTA & PAT – 9 Months (Consolidated ) Rs. in Crores 77%
Hospital wise Operating Revenues Rs. in Crores +13% +18% +16% +13% +15% +59% +189% +60% +46% +34%
Hospital wise Operating EBIDTA Rs. in Crores +46% +9x +103% +44% +357% +49%
Mohali and Noida Rs. in Crores MOHALI: • Revenue grew @ 30% and 18% over Corresponding quarter and nine months respectively • Dr. T S Mahant coveted with Himachal Ratan award by the HP State Govt. • Average Occupancy was 71% at the hospital NOIDA: • Revenue grew @ 17% and 16% over Corresponding quarter and nine months respectively • Blood Bank at the hospital awarded with NABH Accreditation • Average Occupancy at 69% • Oncology block work in progress +30% Rs. in Crores +17%
Escorts Delhi • Revenue grew by 32% over corresponding quarter • 6th consecutive quarter of growth, on an ongoing basis • Operating EBIDTA – 18% for the quarter • Crosses Rs. 20 Cr Revenue/month mark in Dec’ 08 • Observed highest occupancy @ 75% in December • ARPOB at Rs. 1.05 Crores + for Q-3 • Highest number of PTCA (286) and Cath Lab (666) procedures in a month recorded in Q-3 Rs. in Crores +32%
Escorts Amritsar and Jaipur Rs. in Crores AMRITSAR: • Revenue grew @ 90% and 59% over Corresponding quarter and nine months respectively • Achieves maximum revenue on a month on month basis throughout the year • Operating EBIDTA @ 28% for the quarter • The hospital was awarded as “The Best Hospital for standing up for Patient Rights” in an “Annual Conference of All India Human Rights Association” • The hospital also touched landmark of 10,000 Cardiac procedures JAIPUR: • Revenue grew @ 51% over Corresponding quarter • Reports maximum Angiographies (107) and deliveries (34) in the month of December • OPD footfalls crossed 1,00,000 • Average Occupancy was @ 54% +90% Rs. in Crores +51%
Fortis Malar & La Femme Rs. in Crores Fortis Malar Hospital: • Revenue grows @ 73% over Corresponding quarter • Cardiac Sciences program launched on 15th Dec 2008 • Revenue grew sequentially over last 9 months. • Dentistry program added • Average Occupancy at 58% (adj.) • ICU beds capacity expansion and renovation underway LA FEMME: • Revenue grew @ 85% over Corresponding quarter • Achieved maximum number of deliveries (117) in the month of December • Pre-survey for NABH conducted • Occupancy @ 51% +73% Rs. in Crores +85%
Legal Update: • Escorts: • Conversion and sale of Society: Anil Nanda matter. • HC dismissed the suit along with all the applications vide order dated July 3, 2008. • Anil Nanda and Goetze India filed appeal against the order. • Hon’ble High Court allowed the appeal and restored the suit and the interim order dated 30.09.2005 passed in the suit vide judgment dated 16.01.09. Next Date: March 2, 2009. • Property: DDA terminated the Lease Deed based on violation of 25% free bed condition and merger/ conversion resulting in transfer of land without DDA approval. - No Change, Next Date: March 24, 2009 • Income Tax Matters: • Assessment of erstwhile Delhi and Chandigarh Society levying a demand of Rs. 124 Crs. • Demand for Rs. 81 Cr. set aside earlier this year by ITAT and ordered for fresh assessment, process for which is being initiated by the departments pending. • Rajan Dhall: • Property: Lease Deed terminated by DDA on Nov 30, 2005 on grounds that the Society failed to construct the building within the stipulated period; and the land has been transferred • No Change, Next Date: April 13, 2009 • Estate Officer issued a show cause notice under the Public Premises Act for eviction. • No Change, Next Date: March 6, 2009