56
Max India Limited Investor Presentation August 2017 www.maxindia.com
Max India Limited Investor Presentation
August 2017
www.maxindia.com
Max Group Vision“To be the most admired corporate for service excellence”
Sevabhav
Excellence
Credibility
• Positive social impact
• Helpfulness
• Culture of Service
• Mindfulness
• Expertise
• Dependability
• Entrepreneurship
• Business performance
• Transparency
• Integrity
• Respect
• Governance
1
2
Evolution of Max Group—Strong history of entrepreneurship and nurturing successful businesses
Health Insurance,
JV with Bupa Plc
Health Insurance,
JV with Bupa Plc
1985 1993 2000
Forays into Penicillin
bulk pharma
Forays into Penicillin
bulk pharma
Enters Telecom in JV with Hutchison
JV with Gist Brocades (Asia’s largest Drug
manufacturer )
Enters Telecom in JV with Hutchison
JV with Gist Brocades (Asia’s largest Drug
manufacturer )
Shift from B2B to B2C businesses:
●Life insurance
●Healthcare
●Clinical research
Shift from B2B to B2C businesses:
●Life insurance
●Healthcare
●Clinical research
Hutchison
Fund raising ~ USD 360 Mn● QIP- USD 156 Mn in 2007
● Warburg Pincus - 53 Mn in 2005
● IFC- 47 Mn(2007) &23 Mn (2009)
● Goldman Sachs 82 Mn in 2011
Fund raising ~ USD 360 Mn● QIP- USD 156 Mn in 2007
● Warburg Pincus - 53 Mn in 2005
● IFC- 47 Mn(2007) &23 Mn (2009)
● Goldman Sachs 82 Mn in 2011
2005 20112007 2009 2012 2013 2014 2015 2016
NYL exits and JV withMSI in 2012● MSI is world’s 7th largest
general insurance group
● MSI acquired 26% stake for USD 425 Mn
● Max Life valued at USD 1.6 bn
NYL exits and JV withMSI in 2012● MSI is world’s 7th largest
general insurance group
● MSI acquired 26% stake for USD 425 Mn
● Max Life valued at USD 1.6 bn
LHC inducted as JV Partner in MHC● LHC is 2nd largest hospital
chain in South Africa
● 2012 - Acquired 26% stake for USD 81 Mn in MHC
● 2014 - Equalize stake in MHC invests USD 120 Mn
LHC inducted as JV Partner in MHC● LHC is 2nd largest hospital
chain in South Africa
● 2012 - Acquired 26% stake for USD 81 Mn in MHC
● 2014 - Equalize stake in MHC invests USD 120 Mn
Enter Senior Living business,
launch first community in Dehradun with
200 units
Enter Senior Living business,
launch first community in Dehradun with
200 units
Max India demerged into 3 listed hold cosMax India demerged into 3 listed hold cos
Landmark Acquisitions by MHC● Acquired 79% stake for
USD 40 Mn in 340 bedded Pushpanjali hospital expandable upto 540 beds
● Acquired 51% stake for USD 100 Mn in 230 bedded Saket City hospital, expandable upto1200 beds
Landmark Acquisitions by MHC● Acquired 79% stake for
USD 40 Mn in 340 bedded Pushpanjali hospital expandable upto 540 beds
● Acquired 51% stake for USD 100 Mn in 230 bedded Saket City hospital, expandable upto1200 beds
Note: Conversion rate assumed 1 USD = INR 64
Health & AlliedBusiness
Life InsuranceBusiness*
Max Group – Corporate Structure
3
Max Group ‐ Sponsors
Manufacturing & Other businesses
Holding
Co
mpa
nies
Ope
ratin
g Co
mpa
nies
70%50%
51%
100%
51%
Group CSR Arm
30.4% 41.1% 38.2%
Sponsors stake in Max Group holding companies
100%
100%
100%
Max Group Overview
USD 2.6 billion+… 9 Mn Customers… 23,000 Employees… ~65,000 Agents…
2,850 Doctors…
Strong growth trajectory even in challenging times; a resilient & diversified business model
Steady revenue growth and cost rationalization leads to strong financial performance
Well established board governance….internationally acclaimed domain experts inducted
Diversified ownership…..marquee investor base
Superior brand recall with a proven track record of service excellence
Strong history of entrepreneurship and nurturing successful business partnerships
1
2
3
4
5
6
7
4
Max Group : Continues to grow from strength to strength
5
Group EBITDA (USD Mn)
69 82 97 112 160
FY'13 FY'14 FY'15 FY'16 FY'17
Group Revenue (USD Mn)
1,465 1,664 1,944 2,225 2,625
FY'13 FY'14 FY'15 FY'16 FY'17
Max India: High pedigree investor base
Number of outstanding shares* : 26.73 Cr.
Promoters41.1%
IFC3.1%FII/ FPI
19.7%
Mutual Funds23.3%
Others12.8%
Shareholding Patternas on Jun 30, 2017
6
Reliance Mutual Fund
Ward Ferry
HDFC Standard Life Insurance
Goldman Sachs
International Finance Corporation
Government of Singapore
New York Life Insurance
Comgest
Nomura Singapore
DSP Black Rock Mutual Fund
L&T Mutual Fund
Mirae Mutual Fund
Target Asset management
Shareholding concentrated with Marquee Investors
* Max Group Sponsors hold warrants convertible into 4% equity stake, post conversion Sponsor’s stake will increase form 41% to 45%, on fully‐diluted equity base will increase to 28.7 Cr shares post conversion
www.maxhealthcare.in www.maxindia.com
MAX INDIA LIMITED
MAX HEALTHCARE
7
Indian healthcare industry is expected to reach ~$400 billion fuelled by multiple demand drivers
Sources: India Brand Equity Foundation – Healthcare report, 2012; BofA Merrill Lynch Global Research, IBEF Mar'15
60 79 102280
2010 2012 2015 2020 2025
Indian healthcare sector*Estimated size, Bn USD
Demand drivers for growth
* Healthcare sector includes hospitals, pharmaceuticals, and medical technology sub-sectors
~500 mn
additional middle class by 2025
~45%
Insurance penetration by 2020
~134 mn
population > 60 years by 2020
~$8 bn
medical tourism market size by 2020
~320 mn
at risk of dying due to NCDs by 2020
~2 mn
beds required by 2025
CAGR 11.2%
CAGR 14.6%
^
350 - 450
^ Depending upon public spending levels, insurance proliferation, and success of public-private partnerships by 2025
8
Hospitals constitute ~70% of Indian healthcare market with increasinglydominant role of private sector
Sources: BofA Merrill Lynch Global Research, IBEF Mar'15
Private players have established a dominating presence in tertiary / quaternary care
70% 63% 60% 78% 80%
30% 37% 40% 22% 20%
Market Share Beds Inpatients Outpatients Doctors
Private sector Public sector
70%
20%
10%
Hospitals
Pharmaceuticals
Medical technology / Others
Indian healthcare sector* Market share %
Market size of private hospitals is expected to reach ~$ 120 bn by 2020
2236
50
120
2009 2012 2015 2020
Private sector hospitalsEstimated size, Bn USD
CAGR ~14.7%
CAGR ~19.2%
* Includes hospitals, pharmaceuticals & medical technology / other companies
9
Competition is intensifying with scale‐up of well funded incumbents &availability of capital for new players
The surge of VC/ PE investments in recent years has eased funding constraints on growth
Annual VC/ PE investment’s in India’s Healthcare ($ Million)
580 485
1262 1359835
20112010 20132012 2014 (H1)No. of deals 35 29 45 71 43
Scale up of well funded incumbents
8,600 550, (2013 - KKR)
4,800 820, (2013 - Stan Chart, IFC)
1,300 700, (2015 - Temasek/PunjLloyd)
CURRENT SCALE FUNDING (RS. CR.)
6,500 290, (2014 - CDC)
4,900 900, (2015 - TPG Capital)
2,500 (2012) 560, (2012 - Advent)
CURRENT SCALE FUNDING (RS. CR.)
2x
Note: Fortis and NH operational beds not split between owned and managed; Manipal’s # of managed beds assumed to be same for 2010 and 2013; assumed exchange rate of 1$=INR60Source: Crisil research, company websites and presentations, secondary sources
Slide sourced from Bain and Company
10
MHC vision
KEY ENABLERS WHERE DO WE WANT TO BEWHAT WILL WE BE KNOWN FOR
• Strong talent pool of clinicians, nurses and healthcare leaders
• Technology and analytics enabled clinical outcomes and customer experience
• Integrated care
• Clinical excellence
• Transparency
• Speed
• Tech enabled continued care
• #1 in selected specialties in chosen geographies
• Focus on Tertiary and Quaternary care
• Physical infrastructure in North India; however serving more than 300 towns in India and 30+ countries
To become an admirable institution known for service excellence, medical excellence, scientific research, and
medical education
11
MHC has a strong focus on North India
401
521Saket Noida
Gurgaon
Vaishali
Shalimar Bagh
Saket City
41
72
OUTSIDE NCRNCR
Patparganj
214
Mohali
Bathinda
Dehradun
186
168
272 224
290
~2500 available beds across the
network
12
Pitampura*
Panchsheel* Lajpat Nagar*
* Standalone Speciality Clinics with Outpatient and Day care facility
Greater Noida
112
MHC has invested in state of the art equipment to achieve clinical excellence (1/2)
Advanced robotics provides high precision, and minimum invasive surgery across multiple specialities such as Oncology, Neurology
High dose radiation with extreme precision (~ 0.5 mm accuracy)
Advanced image guided surgery -provides real-time views and automated
image processing
Provides precise correlation and facilitates proper treatment for Oncology, surgical
planning and radiation therapy
Rob
otic
sB
rain
sui
te
Nov
alis
LIN
AC
PET-
CT
13
MHC has invested in state of the art equipment to achieve clinical excellence (2/2)
Robotic radio-surgery (non-invasive) system for both cancerous & non-cancerous systems
Designed for revolutionary single incision laproscopic surgery through catheter-based,
flexible instruments
Economical digital storage and convenient access to medical images from multiple modalities
Cyb
erK
nife
*
Picture Archiving & Communication System - PACS
SPID
ER
* planned14
MHC has a robust service excellence & quality framework which has resulted into enhanced customer experience
• “Sevabhav” trainings and Reward & Recognition platform has led to positive shift in mindset
• Structural Interventions through Six Sigma and other methodologies has resulted into business impact of over 15 Mn USD
57%69% 73%
FY`15 FY`16 FY`17
13%
Top 2 Box Rating*
* MHC is the only healthcare company who has deployed a third party (IMRB) to conduct Satisfaction survey 15
MHC strong Governance Model helps us bring alignment and improve accountability
Executive Committee
Unit Heads
Unit Management Committee (MANCO)
Group Medical Advisory Council
(GMAC)
Hospital Medical Executive Council
(HMEC)
Doctor’s council
Managerial Clinical
Administration
Nomination & remuneration Audit
Investment & performance
review
Medical excellence & compliance
Service excellence
Scientific projects & technology
Corporate social
responsibility
Board & 7 committees
Governance
16
MHC has a proven record of building an institution
NABL/ NABH
accredited
ISO 9001:2000
& ISO 14001: 2004
certified
DL Shah National
Award on ‘Economics of Quality’
FICCI Excellence Awards -
Operational Excellence
Leadership positions in NatHealthand CII -
healthcare
First MHC hospital started in
2002
MHC is one of the top 3 healthcare chains in India
Strengthened capabilities to provide comprehensive tertiary & quaternary care
Network of highly qualified doctors, nurses and medical personnel
Organic growth through expansion of hospital network
JV with Life Healthcare, South Africa, extending expertise and global reach
BusinessWorld
Healthcare Award in Patient
Experience & Safety
17
Max Saket received JCI accreditation – highest standards of clinical governance and compliance
19 awards across clinical safety, operational excellence, service quality, and others
Clinical Safety (5) Operational Excellence (7) Service Quality (3) Others (4)
•Best customer service in Healthcare
•Best storyline at South Asia Team Excellence Award (Mission Pride)
•Best use of six sigma in Healthcare
•Best green hospital (reducing carbon foot print of tertiary care hospital)
•Best patient safety initiative (prevention of patient fall)
•Best quality initiative (BCMA medication process improvement )
•Infection Prevention and Practices (1st runner up)
•ET Best Healthcare brand
•Excellence in training and development
18
Healthy revenue growth driven by new & mature hospitals
19
Mature Units,> 5 Years
New Units,< 5 Years
MHC Annual Gross Revenues by hospital age
Rs. Cr.
NOTE: In FY17 some specialities transferred from Saket (mature unit) to Max Smart (new unit) as part of Saket complex integration, leading to marginal revenue growth in mature units
1,002 1,095 1,283 1,423 1,470
147312
461
7591,097
FY13 FY16
1,407
2,181
FY15FY14
1,744
1,149
2,567
22%
FY17
Steady margin expansion driven by cost efficiencies, build‐up in mature units, and revenue scale‐up at new units
% EBITDA Margin, < 5 Yrs.xx% EBITDA Margin, MHCxx % EBITDA Margin, > 5 Yrs.xx
ROCE for mature units at 18.1%
(17.3%) and for new units at 1.7% (‐1.5%)
20
Note : FY16 excludes Rs. 6 Cr. of one time expenses towards the Pushpanjali and Saket City acquisitions; FY15 excludes Rs 3 Cr of one off expenses
xx
NOTE: In FY17 some specialities transferred from Saket (mature unit) to Max Smart (new unit) as part of Saket complex integration, leading to marginal EBITDA growth in mature units
Mature Units,> 5 Years
New Units,< 5 Years
MHC EBITDA by hospital age
Rs. Cr.
6.4 8.2 10.1 10.5
11.8 12.0 13.4 14.0
‐30 ‐4.4 1.5 4.1
11.5
13.8
8.5
164 190 194
3187
‐43
115 125
FY16
‐14
7
FY14 FY15FY13
71
281
112
17022141%
FY17
Strong momentum across all volume and value levers in last 5 years
21
Maintained healthy occupancy levels despite strong bed addition momentum
Steady growth in Revenue per occupied bed
Consistent focus on key tertiary tower specialitiesConsistent improvement in Average Length of Stay
Figures in Rs. Thousands Per OBD
1,235 1,457 1,6791,094908
6515922,049 2,330
FY16
1,302394
1,680
+16%
FY14 FY17FY15
378
FY13
4451,472
34
FY17FY14
41+5%
FY15 FY16
403733
FY13
‐2%
FY17
3.2
3.5
FY15
3.5 3.4
FY16FY13
3.3
FY14
Figures in Number of days
12%
55%
10%
54%
7%2%
FY16
10%10%
FY13
10%
12%
7%
11%
5%
14% 13%15%
10%
6%
56%
13%
3%3%
FY14
53%
FY15
10%
51%
10%
4%3%
FY17
8%
13%
7%
12%
10%
2%
14%
OncoOrtho CardiacNeuroMAMBS Renal
72.171.173.574.369.7
Avg. occupiedbeds
Avg. unoccupiedbeds
Occupancy (%)
Note: Cardiac revenue impacted by stent price capping in FY17
MHC growing faster than competition; profitability ratios to improve with maturity of beds and further expansion
All figures for FY17 Max Healthcare Fortis Apollo* NarayanaHealth
Operational Beds (No.) +2,300 +3,500 7,000 +5,200
Gross Capital Employed (Rs. Cr.) 2,255 8,530^ 6,948^ 1,171
Net Revenue (Rs. Cr.) 2,454 Cr, +17% 3,712 Cr, +8% 4,380 Cr, +12.5% 1,878 Cr, +16%
International Rev. 246 Cr, +28%, 10% of revenue
396 Cr,+10%10.6% of revenue N.A 145 Cr,
8% of revenue
Operating EBITDA (Rs. Cr.) 281 Cr 545**/173 Cr 605 Cr 229 Cr
EBITDA Growth (%) 31% 8%**/264% (0.3%) 31%
EBITDA Margin (%) 11.4% 14.7%**/4.7% 13.8% 12.2%
ROCE (%) 7.0%(Mature units 18.1%) 3.6%^ 6.3%^ 14.2%
EBITDAR per OBD (Rs. lacs) 19.6 21.2 17.5 8.5
ALOS (days) 3.25 3.56 4.04 4.00
ARPOB/p.a (Rs. Cr.) 1.52 Cr 1.45 Cr 0.98 Cr 0.76 Cr
*Apollo Revenues excludes standalone pharmacy revenue^ Capital employed and ROCE based on overall consolidated numbers** Before Net BT Costs; 22
Four dimensions to value creation for MHC
23
Existing network optimizat
ion
Hospital network growth
Alternate models
Key enablers
• Focus on identified key specialties
• Channel optimization
• Cost initiatives
• Capacity expansion to 5000+ beds largely through brownfield & select greenfield assets
• M&A• FAR• Greenfield
• Pathology • Onco daycare• Digicare
• Differentiated positioning
• Service experience• Patient safety• People• Compliance
A Increasing share of preferred channels to improve profitability
As the new units in the network mature, the share of preferred channels will increase in the revenue mix and tend to mirror the share in current mature units
Action plan in place to further increase the share of preferred channels in the mature units
27.3%
21.2% 22.4%19.5%
34.2% 35.1%33.0%
16.0%20.9%
15.4%13.0%Institutional/PSU
MACTPA
Walk-InInternational 9.7%
100.0% 100.0%4.7%
New UnitsMature Units
13.5%
14.0%
MHC
100.0%
Preferred Channels
Non-preferred Channels
Healthcare revenue channel share, FY17 Percent
Walk‐in Inter‐national
• Sustained brand effort / experience delivery on new positioning
• ATL/BTL campaigns for key specialties• Strengthen ER capabilities
TPA• Seek new engagement models in the
prevention/ wellness space• Assess co-development of product targeted
at new customer segments
• Establish direct presence and digital footprint in select markets
• Expand in attractive new markets• JCI Accreditation at flagship units
MAC
Institutional
• Maintain share & improve quality of business via upcountry channel
• Deprioritize; profitability improvement through focus on collections, material cost, and ALOS
24
TRANS-PLANT
High share of preferred specialties to improve profitability
Share of preferred tertiary/surgical specialties to increase in the revenue mix, in line with the historic trends
Action plan in place to grow focused specialties
Healthcare revenue specialty share, FY17 Percent
• Build distinguished leadership in all DMGs
• Establish a standalone centre• Personalized medicine
ONCOLOGY
• Provide end to end service offering• Launch specialized clinics• Invest in high end Neuro equipment
NEUROSCIENCES
CARDIOSCIENCES
• Build comprehensive transplant center in Saket complex; launch LTP
• Establish KTP and BMT programs in selected locations
• Focus on high-end procedures• Partnerships with renowned global
institutions – people & best practices
32% 32% 32%
68% 68% 68%
FY-15 FY-16 FY-17
Secondary
Tertiary
A
25
Focus on structural cost efficiency built up through a programmatic approach
Rs. ~100 Cr. of cost saving achieved during FY16 and FY17
Rs. 60 Cr. of further cost efficiency built up being targeted for FY18
Focus on structural improvements
• Procurement efficiency and formulary driven substitutions
• Materials management and control, spl. In PSU cases
• Contract negotiations and optimization
• Organization restructuring• Physician compensation re-
modelling
• Contract negotiations • Work optimization by leveraging
benchmarks
Build strength in procurement• Best in class cost• Optimized formulary• Support low cost
supplier/vendor eco-system
Invest in technology / digital• Best in class manpower
productivity (Smart Kiosks, e-ICU etc.)
• Leverage technology to provide health services outside of hospital
Re-engineer/simplify processes • Reduce manpower and
other indirect costs through elimination of wasteful steps
MATERIAL COST
CLINICIAN COST
PERSONNEL COST
OTHER INDIRECT
COST
A
26
MHC poised to derive strong growth from healthy mix of mature and New units
27
2,384*
5,061102 106 185
504-
1780
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 & beyond Total
Smart : 45Vaishali: 21
Patparganj: 14Gurgaon: 12Dehradun: 10
Smart: 100Mohali: 85
Smart: 400S.Bagh: 104
Mullanpur: 400Gr. Noida: 380
Smart: 550Saket: 250PPG: 200
Vaishal: 106
* Bed Capacity as at March 31, 2017
B
• Founded by prominent Delhi clinician; operational since 2010• Strategically situated on National Highway 24; 5 minutes from
Max PPG - Potential to dominate the E. Delhi and Western UP• Large asset with potential to grow
• 340 beds, expandable to 540 • Built on a plot size of 3.46 acres with 0.4 mn. sq. ft.
Builtup• Infrastructure matching MHC’s LTFS standards
Rechristened MHC VaishaliPost acquisition
The Acquisition
Financial Turnaround
Q2FY16 H2FY16 H1FY17
12.2
0.6
5%
67%
15.5
2.6
17%
64%
17.4
2.3
14%
70%
Revenue* (cr)
EBITDA* (cr)
EBITDA (%)*
Occupancy
* Figures are monthly averageHigher EBITDA in H2FY16 is due to exceptional items in Mar16
During FY16, MHC acquired the 340 bedded Pushpanjali hospital in NCR, with potential to grow up to 540 beds
B
28
H2FY17
18.7
3.1
17%
68%
State-of-the-art transplant centre – for all transplants incl. heart, liver, kidney, bone marrow
Asia’s premier quaternary care with 7 centres of excellence
India's first international patient centre
Largest private facility in India
Dec 15 H1FY17
13.6
-0.8
-7%
69%
16.2
1.45
9%
75%
Revenue* (cr)
EBITDA* (cr)
EBITDA (%)*
Occupancy
~2000 beds in fully built state
Complex spread across 11.5 acres
300 – 500 beds dedicated to Cancer
Infrastructure to support all 6 tower
specialties
Adjoining 7.1 acres land to be
developed to offer complementary,
allied healthcare services such as
Rehab, assisted living etc. by
GMHRC
Enterprise Value of Rs. 1,025 Cr. (Equity Value Rs. 325 Cr. for 51% stake and debt of Rs. 325 Cr; Rs. 375 Cr. (+12% p.a.) to be paid within 3 years for the balance 49% stake)
13.8
-0.52
-4%
66%
Q4FY16
29
Saket City Acquisition: Opportunity to create one of Asia’s largest Medicity in the heart of South Delhi
B
* Figures are monthly average
H2FY17
19.9
3.14
17%
80%
Max Lab : Looking outwards while leveraging our strengths
• Significant demand:• Path market in NCR poised to grow 3X by 2020 to ~ 6,200 Cr
• Supportive supply situation:• Organized players (CAGR ~ 26%) outpacing industry growth• Very few organized players currently.
• Attractive entry model• Possible for MHC to enter B2C & B2C business models with
low-capex by leveraging existing infrastructure• Encouraging financials
• Existing players have EBITDA margins of 20%+, EBITDA on incremental revenues for MHC expected to be higher (> 35%)
Why will MHC succeed?
Physician Clinic
Hospital tie-ups
Govthospital/PPP
Hospital lab
Home sample collection
POCCollection center
MAX LABS 24X7
Consumer
Clinicians/Institutions
Rs. ~250 Cr. of Revenues from in-house IPD/OPD Pathology services (FY16)
C
30
Q1FY17
0.8
0.3
41%
1.1
0.3
23%
Revenue (cr)
EBITDA (cr)
EBITDA (%)
1.5
0.5
35%
5.1
1.4
28%
Q2FY17 Q3FY17 FY17
Financial Performance
1.7
0.3
20%
Q4FY17
Cancer Day Care Centre – Launched an innovative patient care model in Q1 FY17, turned EBITDA positive in Q4FY17
Actual design imagesOur belief
Our differentiators
Patients are increasingly seeking access to a more personalized treatment (vis-à-vis at a hospital) along with a unique adjunctive ambience/experience and a high focus on efficiency
1. Led by a stalwart Med. Oncologist2. End to end design partnership with GE3. Staff expertise and iron clad processes4. Comforting ambience
D
31
Q1FY17
0.1
-0.3
-308%
2.1
-0.2
-9%
Revenue (cr)
EBITDA (cr)
EBITDA (%)
1.5
-0.6
-42%
4.9
-1.1
-18%
Q2FY17 Q3FY17
Financial Performance
FY17
2.2
0.0
0%
Q4FY17
www.maxbupa.com www.maxindia.com
MAX INDIA LIMITED
MAX BUPA HEALTH INSURANCE LIMITED
32
A symbiotic partnership in health insurance
Helping people live longer, healthier, happier lives+
Wha
t we do
Highlights
Domestic Health Insurance
Global Health Insurance
Dental and Travel insurance Advice Primary Care
Clinics
Dental clinics Aged Care
► Leading international healthcare group present across 190+ nations, provides personal and company health insurance, runs care homes for the elderly and hospitals in addition to a range of health services
► Founded in 1947 in the UK, Bupa employs over 86,000 people across UK, Australia, Spain, Hong Kong, Poland, New Zealand, Chile, Brazil, Thailand, Saudi Arabia, India and the US
► Revenues of over £11 billion, over 70% coming from health insurance covering over 16.5 million customers
► Diversified group with interests in insurance, healthcare, manufacturing, real estate, learning and senior living
► Founded in 1985 with an entry in the bulk pharma business, Max has evolved into one of the leading health services organizations in India
► Over INR 168 billion in revenues, serving over 9 million customer with 23,000 employees and 2800 doctors.
Max Bupa is a 51:49 joint venture between Max Group and Bupa
In the business of Life
1
Our Vision and Mission
34
To be the most admired health
insurance company in
India
To help customers live healthier, more successful lives
Vision Mission
Industry landscapeHealth insurance market (including PA, Travel & contribution by life insurers)
FY 16-17
2,800
Travel & LI contribution 2
PA
FY10-11
Retail
50,000
1,600
Government sponsored
9,100
Corporate
FY19-20(Estimated)
23,600
17,500
4,500
GWP in Rs cr
34,374
Low penetration and coverage HI penetration (premium as % of GDP) is only
~0.2% Only 27% of population has any kind of health
insurance, but significant under insurance
Increasing affluence and awareness Rise in income levels and healthcare spend per
capita Middle class expected to increase to 41% of
population by 2025 (from 5% in 2005)1
Rise in health care costs Medical inflation over 10% High out‐of‐pocket expenses (62% v/s ~10% in
US/UK & ~30% in China)
Rise in incidence of chronic diseases(viz. Cancer, heart diseases) & lifestyle related diseases (diabetes)
Regulatory & policy level interventions IRDAI’s consumer‐centric approach Higher tax saving incentives on HI
Key drivers of growth
Indian health insurance market is likely to grow by ~15% CAGR in next 3 years
1 Mckinsey report ‘Tracking the growth of India’s middle class’ in 2007
2 Growth rates for Travel & LI contribution of HI not available (Assumed at 16% same as 5 year CAGR of PA) 35
Recent industry developments
SAHIs are the fastest growing section in the industry…
…led by distribution expansion as well as product launches
• Heavy investments to add capacity
-SAHI players (Apollo, Star, Religare) have been adding capacity in agency channel over last 2 years – branches as well as frontline sales force
-Banca tie‐ups over last 2 years, adding significant capacity to their network
• Multiple product launches
-Niche proposition like Cancer care, Dengue care, Maternity specific, Health savings product etc.
- Increased focus on health & wellness offerings (Cigna, ICICI Lombard, Aditya Birla Health)
• Industry continues to attract new entrants
-Kotak General – paid‐up capital of Rs 150 cr with initial focus on motor and health retail segment
-Aditya Birla Health Insurance commenced business in Oct’16-Aspire health insurance to become 7th SAHI player – has already filed an application with IRDAI
-Reliance health insurance is in the pipeline to become subsequent SAHI player
• Stake sale-Foreign insurers are raising stake (Mitsui Sumitomo – CholaMS, Fairfax Holdings – ICICI Lombard, Cigna – Cigna TTK)
-HDFC ERGO General Insurance acquired 100% shares of L&T General Insurance for Rs 551 cr
-Religare enterprise to sell its entire 80% stake in Religare Health Insurance to a consortium of investors for INR 1,040 cr
Source: GI council; Market intelligence, team analysis
Overall HI industry
Key recent trends
144476503
1022
2008
222594726
1302
2962
+25%+54%
+27%+44%
ReligareApollo MBHIStar
+48%
Cigna
+26%
34374
27369
41546907
16308
58608057
20457
SAHI’sPvt GIPSU’s
+25%
+17% +41%
FY’15-16FY’16-17
FY’15-16FY’16-17
GWP in Rs cr
GWP in Rs cr
4
Journey since inception
FY10-11
FY11-12
FY12-13
FY14-15
FY15-16
GWP, Rs cr
FY13-1499
207
309
373
Cha
nne
lSe
rvic
e m
odel
• B2C
• Agency• Direct channels• TPD
• In-house claims processing
• Entered B2G -First RSBY scheme won
• Entered B2B business
• Launched ‘Walk for Health’, annual brand property
• First Bancapartnership (Deutsche bank)
• Rationalized TPD2
1. Does not include rural lives | 2. From ~70 partners to top 5
• Reached ~3,100 network providers
• 30-min claims settlement (92% cases)
• Launched three more bancapartnerships
• Prioritized B2C
296%
108%
53%
18%
47
215
454
681
799
Lives, ‘0001
xx% Y-o-y growth
CAGR
476
1,010
• CRM launched• Walk for Health
went national touching 33 MM lives
• Launched 4 partners (Sarv UP, Muthoot, Coverfox, Bank Bazaar)
26
Segm
ent
FY16-17
• Launched Bank of Baroda serving more than 5,400 branches
• Standing Instructions for auto renewal
• First ‘embedded’ product launched at Federal bank
28%
594
1,34525%
5
Healthy growth with consistent improvement in combined ratio
Max Bupa’s focus has been onthe B2C segment sinceinception
While it is harder to build aB2C book (linear customeracquisition vs. lumpy demandof B2B or B2G), Max Bupa hasgrown faster than market(market growth ~22% CAGR)
B2C focus driven operatingmodel choices and someexecution challenges haveresulted in higher upfront opexspend
Com
bine
d R
atio
* (%
)G
ross
writ
ten
prem
ium
(Rs
cr)
* Combined ratio = Claim ratio (Net claim incurred / Net Earned premium) + Opex ratio (Opex / GWP) + Commission ratio (Net commissions / GWP)
151% 142%127% 118% 116%
2012‐13 2013‐14 2014‐15 2015‐16 2016‐17
162245
354466
584
+30%5946 4
4766 4373
18 1309
56 820738 7
2016‐172015‐162014‐152013‐142012‐13
B2C B2B B2G
6
Comprehensive product suite
Key features include hospitalization costs including:
► State of art coverage -Cashless international coverage (market first)
► Lowest (2 years) pre-existing disease waiting period
► Out Patient benefits
► AYUSH benefits
► Maternity & New Born benefits
► Coverage from Day 1 for accidents
► Waiver of 24 months waiting period for specific conditions below 45 yrs
► Loyalty benefit at renewal
Our flagship indemnity product with the most
comprehensive coverage
Heartbeat
Key features include hospitalization costs including:
► No limit on room rent and pre and post hospitalization expenses
► Added protection with Unique Refill benefit
► All day care procedures covered
► Unmatched renewal benefits− No Claim Bonus (No reduction
in case of claims)− Health check ups to help keep
track of the health condition► AYUSH in-patient treatment
► Super top up
An indemnity product withrefill benefit, alternative
treatments & Extended Family First proposition
Health Companion
Accident Care:
► Accidental death benefit
► Accidental Permanent Total Disability
► Accidental Permanent Partial Disability benefit
Critical Illness:
► Covers 20 critical illnesses
► 2 options: Lump sum & Lump sum + staggered pay-out for 5 years
Hospital Cash:
► Daily cash benefit & double cash benefit for ICU
A fixed benefit product with unique 3-in-1 combination of
personal accident, critical illness & hospital cash
Health Assurance
Group Health Insurance includes:
► Group cover for hospitalization benefit
Group Personal Accident:
► Accidental Death , Permanent Total & Partial Disability
Loan linked group critical illness
► Loan linked cover for 25 critical illnesses
► Single pay up to 5 years
Group medical cover
► Customizable product for employer employee groups –B2B
A group product with customized propositions by
selecting from over 35 product features and
parameters
Group Platform
7
Distribution architecture
8
Largest distribution channel for the company Spanning 28 branches across 18 cities Over 50% contribution of overall revenue Frontline sales force of 405 Agency Managers ~14,000 agents One of the most productive agency force amongst SAHIs (Standalone Health Insurers)
7 Banca partnerships (2 foreign banks, 4 Indian banks and 1 rural bank), the highest numbers amongst SAHIs1
• Network of 8,200 bank branches across the country• 540 FOS (Feet-on-street)
2 NBFC tie-ups (Muthoot, Bajaj Finserv) Brokers (Bajaj Capital, NJ Brokers, Shriram) Rural business (RSBY)
One of the largest captive tele-sales set-up in industry Capacity of 140 out-bound tele-callers State-of-the-art technology infrastructure (Dialer / CRM) with secure environment Online sales through MBHI website & web aggregators (6 partners, including Policy
Bazaar – a leading industry player)
Dedicated sales-force 88 full-time employees to address high-net worth individuals’ needs Spread across top 4 metros
Agency
Banca & Alliances
Digital
Direct sales
1 Including latest partnership with South Indian Bank
External recognition
Celent award for Model Insurer – Asia in category of ‘IT Management Best Practices’
Won the Economic Times ‘Best BFSI
Brands Award 2016’
Won ‘India’s Most Valuable and Admired Health Insurer
2016’ award by Pharma Leaders
Recognized as one of the top 50 brands’15 in
India by Pitch and Exchange4media
‘Technology Maturity’ for CRM at the 6th India Insurance Awards –CRM recognized as an advanced technological innovation
ExternalAccolades
The only Health Insurer to be listed as a Superbrand in 2016-17
‘Walk for Health’ recognized as an Internal Best Practice in Social Innovation category
‘Living our Values’ identified as a Best Practice HR model
9
Max Bupa today
For the period ended Mar 31, 2017
In a large, fast growing market Max Bupa delivers 1.3m customers, a vast distribution network and leading brand
1,661 employees
7 banca partners with 8,200 branches
accessing 91m customers1
16,916 agents
98% B2C business
3,700 providers in network
64mn* lives touched through Walk for Health
(2016-2017)
1.3m retail customers
2.3m total customers
GWP Rs. 594 cr (2016-2017)
43% 5 year CAGR
Focus on B2C segment from inception
Investments in direct channels to support the “pull” model; Premium infrastructure (office locations and size) in line with overall positioning
Launched first to industry innovations - Highest Sum Insured options, No age restriction for enrolment, No claim loading, Guaranteed renewability, No 2 year waiting period
Max Bupa is the only insurance company with an annual brand property - Walk for Health initiative
Customer service is a key focus area –~80% of customers rate claims experience with Max Bupa as very good or excellent
Since inception, we started offering in-house claims in a primarily TPA serviced market
*Duplicate reach across mediums101 Including latest partnership with South Indian Bank
Strategic priorities – strengthening the foundation
Remarkable customer
experience
ProfitableGrowth
Portfolio Management - Renewals
Build Digital
People First
Customer Centric
Profitable Growth
1 2
3
4
5
A
B
C
D Digitally enable end to end customer journey
Build a Customer centric, Compliant & Cost conscious Culture
Broad base the franchise with partnerships & alliances
Provider of choice in the Affluent segment in urban India
12
DisclaimerThis presentation has been prepared by Max India Limited (the “Company”). No representation or warranty, express or implied, is made andno reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in the presentation. Thepast performance is not indicative of future results. Neither the Company nor any of its affiliates, advisers or representatives accepts liabilitywhatsoever for any loss howsoever arising from any information presented or contained in the presentation. The information presented orcontained 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 andassumptions that are subject to risks and uncertainties. Actual results could differ materially from our expectations and assumptions. We donot undertake any responsibility to update any forward looking statements nor should this be constituted as a guidance of futureperformance.
This presentation does not constitute a prospectus or offering memorandum or an offer to acquire any securities and is not intended toprovide 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 presentationand, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of the Companyany 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 forthe benefit of, U.S. Persons (as defined in Regulations S under the Securities Act) except pursuant to an exemption from, or in a transactionnot 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 otherperson in any manner. Unauthorized copying, reproduction, or distribution of any of the presentation into the U.S. or to any “U.S. persons”(as defined in Regulation S under the Securities Act) or other third parties ( including journalists) could prejudice, any potential futureoffering of shares by the Company. You agree to keep the contents of this presentation and these materials confidential.
44
ANNEXURES
45
Mr. Rahul Khosla (Chairman)President – Max Group Over 30 years of global experience in Banking and Financial markets.
Mr. Mohit TalwarManaging Director at Max India Ltd. & Max Financial Services Ltd., Over 30 years of experience in Corporate Finance and Investment Banking.
Dr. Omkar GoswamiEconomist and Leading Academic Serves on Board of many Indian MNCs as Dr Reddy’s, Infosys, IDFC, Crompton Greaves, Cairn India Ltd. etc
Mr. Kummamuri Murthy NarasimhaIndependent Director; Leading Finance professional associated with the development of Cost & Management Information Systems for over 150 firms
Mr. Rajit MehtaManaging Director & CEO- Max HealthcareOver 20 years of experience in financial services.Previously Chief Operating Officer at Max Life Insurance.
Dr. Ajit SinghPartner at Artiman Ventures, focusing on early-stage technology & life science investmentsPhD in Computer Science from Columbia University
Dr. Pradeep Kumar Chowbey, PadmashriDirector of Max Institute of Minimal Access, Metabolic and Bariatric Surgery. More than 35 yrs of experience in Lap Surgery, completed 70,000 major Lap procedures
Mr. Andre MeyerChief Executive Officer, Life Healthcare GroupExtensive experience at executive level in employee benefits and healthcare sectors
MHC ‐ Board of Directors
46
Mr. Adam PyleNon Executive Director and Group Executive, Strategy and Investor relations, Life Healthcare GroupCommerce and Law graduate and currently responsible at LHC for driving the international (Poland, India and other territories) strategy, South Africa strategy and managing Investor relationship
Mr. Pieter Van Der WesthuizenNon Executive Director and Chief Financial Officer, Life HealthcarePart of the LHC group for last 17 years and has fulfilled various financial roles
Mr. Rajit MehtaManaging Director & CEO- Max HealthcareOver 20 years of experience in financial services.Previously Chief Operating Officer at Max Life Insurance.
Mr. Yogesh SareenSenior Director & Chief Financial OfficerOver 20 years of experience in across all facets of finance; previously CFO of Fortis Healthcare.
Mr. Rohit KapoorSenior Director & Chief Growth Officer 18 years of diverse experience across industry and management consulting with McKinsey & Company
Mrs. Swati RustagiDirector- Human Resources & Chief People OfficerOver 17 years of experience in HR across FMCG, Financial Services and Health Care sectors. Previously global head of HR at Glenmark Pharmaceuticals
Mr. Anil Vinayak Director & Zonal Head – NCR 1Over 23 years of experience in Business Management and Sales & Marketing; previously with Amex
Mr. Anas WajidDirector- Sales & MarketingMore than 17 years of experience in diverse fields such as advertising, retail , healthcare and media. Previously Head, Sales and Marketing at Fortis Healthcare
Dr. Sandeep BuddhirajaDirector- Clinical Directorate & Institute of Internal Med.Over 23 years of experience in the field of Internal Medicine
Mr. Rakesh PrustiDirector - Legal, Compliance and Regulatory AffairsOver 19 years of experience in diverse sectors such as Trading, IT, Export and Manufacturing; previously with Carrefour and NIIT
Mrs. Vinita BhasinSenior Vice President & Head of Service ExcellenceMore than 19 years of in-depth experience across the Financial Services sector; previously with Max Life Insurance
Mr. Sumit PuriChief Information OfficerOver 21 years of experience in varied industries such as Health/ Life Insurance, IT/ITES, and Consulting; previously CIO of Prudential Life Assurance
MHC – Management Team
47
Key Physicians
48
Dr. Harit ChaturvediChairman – Cancer Care, Director & Chief Consultant -Surgical OncologyOver 25 years of experience in Surgical Oncology.
Dr. Sandeep BuddhirajaDirector - Clinical Directorate & Institute of Internal Med.Over 23 years of experience in the field of Internal Medicine
Strong consultant bench strength of 350+ across specialities :
Cardiac – 100+
Oncology – 50+
Orthopaedics – 50+
Neurosciences – 50+
Renal – 50+
MAMBS – 25+
Dr. Anurag KrishnaDirector- Paediatrics & Paediatrics SurgeryOver 20 years of experience in Paediatric surgery -complex congenital malformations
Dr. A.K. SinghDirector – Max Institute of Neurosciences, DehradunRenowned Neurosurgeon having 40 years experienceRecipient of the BC Roy award
Dr. Pradeep Kumar Chowbey, PadmashriDirector of Max Institute of Minimal Access, Metabolic and Bariatric Surgery.More than 35 yrs of experience in Lap Surgery, completed 70K+ major Lap procedures
Dr. K. K. TalwarChairman - Cardiology, Max Healthcare Clinical experience of more than 39 yearsFormer Head, Department of Cardiology, AIIMS
Dr. Anant KumarChairman – Urology,Renal Transplant, Robotics(Max Saket Complex) and Uro-Oncology Max Saket2200 Kidney Transplantations in the last 25 years and over 1500 lap donors nephrectomy
Dr. Subhash GuptaChairman - Liver Transplant & Biliary Sciences2,200+ liver transplant surgeries & over 30 year experience in Liver TransplantsRecipient of the BC Roy award
49
Rs CrMHC Network* – Performance Dashboard (Q1FY18 & FY17)
*The above results are for MHC Network of hospitals and includes results for Max Super Specialty Hospital, Saket, unit of Devki Devi Foundation, Max Super Speciality Hospital, Patparganj, unit of Balaji Medical and Diagnostic Research Centre & Saket City Hospital unit of Gujarmal Modi Hospital & Research Centre; ^ on the basis of net revenue
Jun‐17 Jun‐16 Mar‐17 Mar‐16a) Financial Performance
Revenue (Gross) 702 636 10% 2,567 2,181 18%Revenue (Net) 666 611 9% 2,454 2,098 17%Direct CostsMaterial Cost 167 160 4% 836 745 12%Clincian Payout 117 104 12% 194 169 15%Contribution 382 346 10% 1,424 1,184 20%Contribution Margin^ 57.3% 56.7% 66 bps 58.0% 56.5% 158 bps Indirect CostsPersonnel Cost 166 143 16% 592 491 21%Other Indirect overheads 116 115 1% 430 364 18%HO Costs 36 29 23% 121 115 6%EBITDA 64 59 8% 281 215 31%EBITDA Margin^ 9.6% 9.7% (12) bps 11.4% 10.2% 120 bps Finance Cost 32 35 ‐8% 133 100 34%Cash Profit 32 25 30% 148 115 28%Depreciation 33 30 10% 124 105 18%Profit /(loss) before tax (1) (5) 82% 24 10 141%Tax 2 ‐ ‐ ‐ ‐ ‐ Profit /(loss) after tax (3) (5) 51% 24 10 141%
b) Financial PositionNet Worth 1,120 1,094 2% 1,122 1,071 5%Net Debt 1,108 1,070 4% 1,102 1,056 4%Tangible Fixed Assets ‐ Gross Block 2,038 1,951 4% 2,038 1,944 5%
Key Business Drivers Quarter Ended Y‐o‐Y
Growth Year Ended Y‐o‐Y
Growth
MHC Network* – Performance Dashboard (Q1FY18 & FY17)
50
*The above results are for MHC Network of hospitals and includes results for Max Super Specialty Hospital, Saket, unit of Devki Devi Foundation, Max Super Speciality Hospital, Patparganj, unit of Balaji Medical and Diagnostic Research Centre & Saket City Hospital unit of Gujarmal Modi Hospital & Research Centre; ^ on the basis of net revenue
Jun‐17 Jun‐16 Mar‐17 Mar‐16a) Patient Transactions (Nos in lacs)
Inpatient Discharges 0.52 0.48 9% 1.89 1.64 15%Day care Procedures 0.13 0.12 6% 0.49 0.35 39%Outpatient Footfalls 17.25 15.87 9% 64.41 55.38 16%Total 17.90 16.47 9% 66.79 57.37 16%
b) Average Inpatient Operational Beds 2,356 2,380 ‐1% 2,330 2,272 3%
c) Average Inpatient Occupancy 72.9% 71.3% 160 bps 72.1% 71.1% 95 bps
d) Average Length of Stay (days) 3.01 3.15 4% 3.25 3.26 0%
e) Average Revenue/Occupied Bed Day (Rs) 44,940 42,012 7% 41,187 40,392 2%
f) Other Operational DataPhysicians 2,847 2,707 5% 2,692 2,707 ‐1%Employees 8,884 8,234 8% 8,711 8,159 7%Customer Base (in lacs) 37.3 31.3 19% 35.7 29.7 20%
Key Business Drivers Quarter Ended Y‐o‐Y
Growth Year Ended Y‐o‐Y
Growth
51
MHC Network Hospitals (Saket* & East Delhi^ Complex) – Performance Dashboard (Q1FY18)
*Saket Complex includes Saket West Block, Saket East Block (unit of Devki Devi Foundation) & Max Smart (unit of Smart Hospital & Research Centre) hospital^East Delhi Complex includes Max Patparganj (unit of Balaji Medical and Diagnostic Research Centre) & Max Vaishali hospital
Saket Complex* East Delhi Complex*
154
164
158 157
163 37
35
37 37 38
30
33
36
39
140
150
160
170
Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17
Net Revenue (Rs Cr) ARPOB (in Rs '000)
225
237
220
233
255 49
47
51 50
53
40
44
48
52
56
210
225
240
255
270
Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18
Net Revenue (Rs Cr) ARPOB (in Rs '000)
25
32
26
38
32
11.2%13.6% 11.7%
16.4%
12.7%
10%
12%
14%
16%
18%
20
25
30
35
40
Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18EBITDA (Rs Cr) EBITDA Margin (%)
20
25
22
23
20 13.0%
15.5%
13.8%
14.8%
12.4%12%
14%
15%
17%
18
21
24
27
Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18
EBITDA (Rs Cr) EBITDA Margin (%)
Rs Cr
MBHI ‐ Board of Directors
52
K NarasimhaMurthyDirector
Mr. Murthy entered the Profession of Cost & Management Accountancy in 1983. He is associated with the development of Cost & MIS for more than 150 companies
John HowardLorimerDirector
John joined Bupa's Board as a Non-Executive Director in July 2011. He is Chairman of Bupa's Audit Committee and a member of Bupa's Risk Committee and UK Regulated Entities Board
Marielle TheronDirector
Ms.Theron is a Principal of ErlenStreet Corporation, Switzerland, a company that specialises in strategic investment and management consulting solutions
Pradeep PantDirector
Pradeep is a highly experienced senior business leader, now involved in business consulting and education
Ashish MehrotraMD & CEO
Ashish has over two decades of extensive banking experience. In his last role as MD and Head for Retail division of Citibank in India, he was pivotal in enabling bank gain a leadership position in the wealth management business
Rajesh SudChairman & Director
Rajesh Sud is the CEO and Managing Director of Max Life Insurance, one of the first three private life insurers to start operations in 2001
Rahul KhoslaCo-Vice Chairman & Director
Rahul Khosla is the President of Max Group and Executive President, Max Financial Services. He is a seasoned business leader with 30 years of experience in India & globally
Joy LintonDirector
Joy is the CFO of Bupa Plc. She has over 25 years’ experience in financial and strategic roles in Australia and the UK.
Mohit TalwarDirector
Mohit is the Managing Director of Max Financial Services and Max India. He has an experience of over 30 years in Corporate Finance and Investment Banking.
Dr. Burjor BanajiDirector
Dr. Burjor Banaji is an ophthalmic surgeon who introduced several firsts in the field of ophthalmology to India
David FletcherCo-Vice Chairman & Director
David Fletcher joined Bupa as Chief Internal Auditor in March 2014 and has been Managing Director of BupaInternational Development Markets (IDM) since Sep 2014
MBHI – Management Team
53
Vikas GujralChief OperatingOfficer
With over 18 years of experience, Vikas joins us from Max Life Insurance. Prior to Max Life, he has worked with Bharti Airtel and GE Capital.
Rahul AhujaChief FinancialOfficer
Rahul has wide domain expertise built over 19 years mainly in corporate banking, financial services and telecom.
Anurag GuptaHead – Agency
Anurag joins Max Bupa from Max Life, where he has held a number of senior roles across distribution and product management over a decade.
Aseem has nearly two decades of experience in sales and distribution and has worked across channels -Agency, Banca, Special markets & Direct Sales.
Aseem GuptaHead – Portfolio Management & Affinity Channels
Priya Gilbile Head – Health Risk Management
Priya is an adept healthcare professional with more than 16 years of experience in healthcare & health insurance industry.
Anika AgarwalHead – Marketing& Direct Sales
Anika heads the Marketing & E-commerce verticals at Max Bupa and is responsible for brand planning, digital media, communications, consumer insights, direct sales and E-commerce.
Joydeep Saha Appointed Actuary
Joydeep brings along a vast experience in Health and Property & Casualty Insurance. He has earlier worked with other insurers like Religare, L&T General, Raheja QBE & Iffco-Tokio.
Atul Bhandari Head – Bancaand Alliances
Atul has 15 years of experience in product/process management & sales/distribution, he joined us from CITIBANK NA, prior to which he worked in Standard Charted bank.
Partha BanerjeeHead – Legal & Compliance
Partha brings along 20 years of diverse experience in Corporate, Commercial, Taxation, IPR, Exchange Control, M&A, Labour Laws and other substantive and procedural laws.
Ashish MehrotraMD & CEO
Ashish has over two decades of extensive banking experience. In his last role as MD and Head for Retail division of Citibank in India, he was pivotal in enabling bank gain a leadership position in the wealth management business
Max Bupa – Performance Dashboard (Q1FY18 & FY17)
54
* Earned Premium lower by Rs 8 Cr in Q1 & higher by Rs 53 Cr in FY17 to change in unearned premium accounting from 1/365 method to50% of net written premium
Jun‐17 Jun‐16 Mar‐17 Mar‐16
a) Gross written premium income
First year premium 54 42 28% 209 176 19%
Renewal premium 105 80 31% 385 300 28%
Total 159 122 30% 594 476 25%
b) Net Earned Premium* 133 112 19% 544 393 38%
c) Net Profit /(Loss) 0.2 (5.6) 104% (4) (68) 95%
d) Claim Ratio(B2C Segment, normalized) 56.5% 57.2% 70 bps 57% 56% 100 bps
e) Avg. premium realization per life (B2C) 7,844 6,944 13% 7,063 6,800 4%
f) Conservation ratio (B2C Segment) 82% 84% (200) bps 83% 82% 100 bps
g) Lives In force in millions (including RSBY) 2.5 2.1 17% 2.4 2.1 16%
h) Number of agents 11,700 13,849 ‐16% 17,011 12,581 35%
i) Paid up Capital 926 898 3% 926 898 14%
Key Business Drivers Quarter Ended Y‐o‐Y
Growth Year Ended Y‐o‐Y
Growth
MAX INDIA LTD.Max House, Okhla, New Delhi – 110 020
Phone: +91 11 26933601‐10 Fax: +91 11 26933619Website: www.maxindia.com
