healthcare global enterprises limited june 2016 · 1) centres operated under the “hcg” brand...
TRANSCRIPT
Healthcare Global Enterprises Limited
June 2016
2
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3
Snapshot of the Business
Specialty healthcare provider with a focus on
cancer and fertility
Largest1 provider of cancer care in India under
the “HCG” brand
Leading provider of fertility treatment in India
under the “Milann” brand
FY16 Financials - Revenue: INR 5,819 mn;
EBITDA: INR 897 mn
NABH, ISO 9001, NABL and CAP accredited5
Key Services and Brands
Introduction to HCG
1 In terms of the total number of cancer treatment centres licensed by the AERB as of March 31, 2015 (Source: Government of India, Atomic Energy Regulatory Board) 2 Discontinued operations 4 Post minority Interest of INR 36mn 5 NABH accreditation for HCC Bengaluru, HMS Ahmedabad; ISO 9001 certification for pathology laboratory at HMS;
NABL and CAP accreditations for Triesta 6 As of June 30, 2015 HCG was in the process of registering the trademark “HCG HOSPITALS”
Overview of HCG
Comprehensive cancer diagnosis and treatment services
17 comprehensive cancer centres, three freestanding
diagnostic centres and one day care chemotherapy centre
as of May 31, 2016
Comprehensive reproductive medicine services
Five fertility centres in Bengaluru and one in Delhi as of
May 31, 2016
Clinical reference laboratory with specialization in oncology
Undertakes clinical trial management and R&D services for
pharmaceutical and biotech companies
Two multispecialty hospitals in Gujarat state as at May 31,
2016
Cancer
Care
Fertility
Treatment
Clinical
Reference
Laboratory
Multi-
specialty
Hospital
6
Future Outlook
9 new comprehensive cancer centres under
development across India
Expansion of Milann fertility centres across
India
Expansion into Africa in partnership with CDC,
UK to set up cancer centres
www.hcgel.com
4
Evolution of HCG as a Provider of Speciality Healthcare
and India’s Largest Provider of Cancer Care¹
1st cancer centre in the HCG
network was set up
Awarded Oncology Leader
of the Year by Frost &
Sullivan
Entry into the clinical
laboratory business through
acquisition of Triesta
Entry into Gujarat through
acquisition of Medi-Surge
Hospital
Entry into fertility business
through the acquisition of
50.1% in BACC Healthcare
Pvt Ltd
India’s largest
provider of cancer
care¹
#1 Rank nationally
in Fertility2
Partnered with CDC
to enter Africa
IPO in March 2016
¹ In terms of the total number of cancer treatment centres licensed by AERB as of March 31, 2015 (Source: Government of India, Atomic Energy Regulatory Board) 2 Times Health All India Critical Care Hospital Ranking Survey, 2016
2005
2007
2011
2013
1989
Today
First Private Equity Financing
(IDFC PE)
2006
Introduction to HCG www.hcgel.com
5 Introduction to HCG
1 As of 30-May-2016
HCG’s Cancer Care Network in India
Bengaluru
Delhi
Ahmedabad
Bhavnagar
Shimoga
Hubli
Nasik
Mumbai
Mangalore Chennai
Trichy
Ongole
Vijaywada
Cuttack
Ranchi
Centre of Excellence (CoE) (1)
Day Care Chemotherapy Centre (1)
Freestanding Diagnostic Centre (3)
Comprehensive Cancer Centre (17)2
Cancer Centres Under Development (12)
Gulbarga
Baroda
Vishakhapatnam
Kanpur
Kochi
Jaipur
Kolkata
Nagpur
Bengaluru
M S Ramaiah Nagar
Kalinga
Rao Road
Double Road
Koramangala
Network of Existing and New
Centres In Development¹
1,291 Beds
21 Linear Accelerators
12 PET-CT Scanners
200+ oncologists
38 Operation Theatres
Infrastructure¹
New Patients 37,315
Radiotherapy Patients 12,220
PET CTs 22,555
Chemotherapy Admins 52,052
ARPOB (INR per day) 26,846
ALOS 2.87
Key Operating Metrics (FY 2016)
www.hcgel.com
6
Partnership driven growth strategy
Location: Bangalore
Partners
(Business):
M.S. Ramaiah Hospital
Teaching Hospital
Nature of
Partnership: Revenue Share
Location: Nasik
Partners
(Business):
Dr. Raj Nagarkar
Surgical Oncologist
Nature of
Partnership: Profit Share
Location: Chennai
Partners
(Business):
Kauvery Hospital
Multi-Speciality Hospital
Nature of
Partnership: Revenue Share
Location: Cuttack
Partners
(Business):
Dr. K.S. Panda
Surgical Oncologist
Nature of
Partnership: Fee for service and Rent
Location: Hubli
Partners
(Business):
NMR Medical Institute Pvt. Ltd.
Diagnostics Centre
Nature of
Partnership: Rent
Location: Ahmedabad
Partners
(Business):
Astha Oncology Private Ltd.
Group of Surgical Oncologists
Nature of
Partnership: Joint Venture
www.hcgel.com
7 Investment Thesis
1 Commencement of Operation (Calendar year) 2 Utilizes the neonatal ICU facilities of partner
Milann Well Positioned to Capture Market Potential
Entry Into High Potential Fertility Treatment
Registered 3,753 new patients (couples) and performed 1,311 IVF cycles in FY2016
Overview of BACC Healthcare and Milann Milann’s Fertility Centres as on FY 2016
Highly Qualified Team Led by Dr. Kamini Rao
In 2013, HCG acquired a 50.1% stake in BACC
Healthcare Pvt Ltd.
Pursuant to the acquisition HCG operates
fertility centres under the “Milann” brand
Milann fertility centres provide comprehensive
reproductive medicine services, including
assisted reproduction, gynaecological
endoscopy and fertility preservation
Founded BACC in 2002
Has over 25 years of experience and track record in providing fertility treatment
Pioneer in the field of assisted reproduction in India
Awarded Padma Shri by President of India in 2014 for contribution to the field of
assisted reproduction
Leads day to day clinical operations of Milann and key contributor to its growth
A post-graduate fellowship program for fertility specialists and training programs for
fertility specialists and embryologists
Location in
Bengaluru Year¹
Number of
Beds IVF
Endoscopy
Operation
Theatre
Embryology
Laboratory
Neonatal
ICU
Shivananda
Circle 1989 38
Jayanagar 2010 26
Indiranagar 2012 6 – – MS Ramaiah
Nagar 2015 6 ²
Greater Kailash,
Delhi 2016 4 –
Future Strategy and Outlook
Fragmentation of the infertility field presents an
opportunity to leverage the experience of
building a national brand
Pan-India expansion plan underway, leveraging
HCG’s partnering strategy and Dr. Kamini Rao’s
reputation and expertise
Standardized clinical protocols and quality
standards
www.hcgel.com
8 Strategy and Outlook
Strategy and Outlook
Expand the Reach of
Cancer Care Network in
India
9 new CCCs in development, scheduled to commence operation in FY 2017 and FY 2018
3 new CCCs commenced operation (as of May 31, 2016)
Expansions underway at Hubli, Cuttack and Ahmedabad
Strengthen HCG Brand
to Reach More Cancer
Patients
Invest in strengthening the HCG brand, enhancing market presence, brand image and visibility
Strengthen patient support groups comprising cancer survivors to spread awareness and educate patients
Grow the base of referring physicians
Expand Cancer Care
Network to Africa
Planning to establish a network of specialty cancer centres in Africa through partnership arrangements and acquisitions
Entered into an agreement with CDC, pursuant to which CDC will invest in our subsidiary, HCG Africa, which has been
formed to establish a network of CCCs in Africa
Upgrade and Strengthen
Information Technology
Infrastructure
In the process of significantly upgrading IT infrastructure to enhance quality of care delivered to patients
IT infrastructure is based on a private-cloud computing system and will include a centralised EMR system seamlessly
integrated with RIS/ PACS, biorepository, HIS and ERP
Expand Milann Network
of Fertility Centres
Across India and Build
Milann Brand
New Milann centres in 3 new cities scheduled to commence operation in FY 2017
Milann centre in Delhi launched
Invest in building the Milann brand, enhancing market presence and visibility
www.hcgel.com
10
Strong Growth in Revenue, EBITDA and PAT
Financial Highlights: Q4 FY16
• Revenue grew 16.3% y-o-y
• HCG(1) centres: +15.5% y-o-y
• Milann(2) centres: +25.7% y-o-y
• EBITDA margin improved to 16.9%
• EBITDA from existing centres: INR
271.2 Mn
• EBITDA margin of existing centres:
18.1%
• EBITDA loss from new centres
launched in FY16: INR 11.6 Mn
INR million except per share data
GrowthPeriod ended March 31 Q4-FY16 Q4-FY15 (y-o-y)
Income from Operations 1,537.5 1,321.7 16.3%
EBITDA(1) 259.6 174.9 48.4%
EBITDA Margin (%) 16.9% 13.2%
PAT(2) 36.4 (2.5) NM
PAT Margin (%) 2.4% -0.2%
Earnings Per Share 0.49 (0.04) NM
(1) EBITDA before Other Income and Exceptional Items
(2) Profit after taxes and minority interests
1) Centres operated under the “HCG” brand – 15 comprehensive cancer centres, 2 multispeciality hospitals, 3 diagnostic centres and 1 day
care chemotherapy centre, as at March 31, 2016.
2) 5 fertility centres operated under the Milann brand, as at March 31, 2016.
11
Growth in revenues and margins across centres
Financial Highlights: FY 2016
• Revenue grew 12.1%
• HCG(1) centres: +11.9%
• Milann(2) centres: +14.4%
• EBITDA margin improved to 15.4%
• EBITDA from existing centres: INR
930.1 Mn
• EBITDA margin of existing centres:
16.2%
• EBITDA loss from new centres
launched in FY16: INR 33.5 Mn
INR million except per share data
GrowthPeriod ended March 31 FY16 FY15 (y-o-y)
Income from Operations 5,819.8 5,193.8 12.1%
EBITDA(1) 896.6 762.5 17.6%
EBITDA Margin (%) 15.4% 14.7%
PAT(2) 12.4 8.4 47.6%
PAT Margin (%) 0.2% 0.2%
Earnings Per Share 0.17 0.12 41.7%
(1) EBITDA before Other Income and Exceptional Items
(2) Profit after taxes and minority interests
1) Centres operated under the “HCG” brand – 15 comprehensive cancer centres, 2 multispeciality hospitals, 3 diagnostic centres and 1 day
care chemotherapy centre, as at March 31, 2016.
2) 5 fertility centres operated under the Milann brand, as at March 31, 2016.
12
Revenue Break-up (FY2016)
Operating Highlights
Karnataka 49%
Gujarat 26%
East India 8%
Tamil Nadu 5%
North India 5%
Maharashtra 4%
Andhra Pradesh
3%
Fertility Centres
8%
HCG Centres
92%
Consolidated FY16 Revenue: INR 5,820 Mn
HCG Centres FY16 Revenue: INR 5,358 Mn
1. Centres operated under the “HCG” brand – 15 comprehensive cancer centres, 2 multispeciality hospitals, 3 free standing diagnostic
centres and 1 day care centre, as at March 31, 2016.
2. 5 fertility centres operated under the Milann brand, as at March 31, 2016.
(1)
(2)
13
Strong Growth From Centres Across India
HCG Centres
INR million except per share data
GrowthPeriod ended March 31 Q4-FY16 Q4-FY15 (y-o-y)
Karnataka 695 606 14.7%
Gujarat 381 291 31.0%
East India 109 86 26.9%
Tamil Nadu 69 55 26.0%
North India 66 68 -3.8%
Maharashtra 49 45 8.4%
Andhra Pradesh 49 36 33.9%
Centres exited in FY16(1) - 39 NM
1,417 1,226 15.5%
(1) Diagnostic centre in Chennai : Q3-FY16; BNH cancer centre in Mumbai : Q2-FY16
INR million except per share data
GrowthPeriod ended March 31 FY16 FY15 (y-o-y)
Karnataka 2,613 2,415 8.2%
Gujarat 1,363 1,095 24.5%
East India 414 318 30.2%
Tamil Nadu 249 205 21.8%
North India 276 289 -4.5%
Maharashtra 205 177 15.6%
Andhra Pradesh 182 147 24.1%
Centres exited in FY16(1) 57 146 NM
5,359 4,790 11.9%
(1) Diagnostic centre in Chennai : Q3-FY16; BNH cancer centre in Mumbai : Q2-FY16
Q4 – FY16 FY 2016
• Continuing strong ramp at several cancer centres in Q4
FY16
• Ahmedabad: +32% y-o-y
• Cuttack: +40% y-o-y
• Chennai: +27% y-o-y
• Vijaywada and Delhi centre being revamped
• New centres added INR 33 Mn in Q4-FY16
• Strong ramp at several cancer centres in FY16:
• Ahmedabad: +29%
• Cuttack: +38%
• Chennai: +38%
• Vijayawada and Delhi centre revamp underway
• Excluding centres exited in the year, growth in revenue
of 14% over prior year
14
Operating Metrics
HCG Centres
1. Includes 15 Comprehensive Cancer Centres and 2 multispeciality hospitals operated under the HCG brand.
2. New hospitals that commenced operation in FY16. Q1-FY16: Bhavnagar (33 beds), Q4-FY16 : Gulbarga (85 beds)
3. During FY16, the Company exited from its CCC at BNH in Mumbai and a diagnostic centre in Chennai.
4. No of beds is as at the last day of the period.
5. Occupied Bed Days is calculated based on mid-day occupancy of beds.
6. Average Occupancy Rate is calculated as Occupied Bed Days divided by the Available Bed Days.
7. Average Revenue per Occupied Bed (ARPOB( is calculated as Operating Revenue divided by the Occupied Bed Days.
8. Average Length of Stay (ALOS) is calculated as Occupied Bed Days divided by number of Admissions.
Q4-FY16 Results
• Occupied Bed Days: +11%
• 3.9% increase in ARPOB
• Ahmedabad, Cuttack, Chennai and
Vijayawada centres primary drivers of growth
in occupancy
FY 2016 Results
• Occupied Bed Days: +4%
• 7.6% increase in ARPOB
• KR-DR refocus primary driver of increase in
ARPOB and lower occupancy
INR million except per share data
Growth GrowthPeriod ended March 31 Q4-FY16 (y-o-y) FY16 (y-o-y)
No. of Centres 17 17
Beds 1,146 15.4% 1,146 15.4%
Occupied Bed Days 53,422 11.2% 2,01,513 3.9%
Average Occupancy Rate 51.2% 51.0%
ALOS 2.97 -8.5% 2.93 -4.5%
ARPOB (Rs./Day) 26,523 3.9% 26,592 7.6%
Revenue (INR mn) 1,417 15.5% 5,359 11.9%
EBITDA Margin (%) 21.1% 20.2%
15
Established in 1989. Centre of Excellence created in 2006.
83 oncologists, 50+ other specialist physicians
Improving trend with Q4 ROCE above 20%
Bangalore – KR and DR Centres
Key Facilities
4 Linear Accelerators (incl. Cyberknife and TomoTherapy radiotherapy
systems)
2 PET-CT Scanners; Cyclotron to manufacture radioisotopes
daVinci Robotic surgery system; 11 Operation Theatres
317 Beds
Bone Marrow Transplant Unit
Overview
(1) ROCE calculated as EBIT divided by average Capital Employed
(2) Capital Employed = Net Block + Operating Current Assets - Operating
Current Liabilities
• Shift in payer mix in FY16:
• Government payers decreased from 15.1 % to
9.0 % of total revenue in FY16
• Revenue from international patients increased
by 29% in FY16
• ROCE(1) in Q4-FY16 increased to 20.2% as
compared to 16.6% in FY16.
INR million except per share data
Growth GrowthPeriod ended March 31 Q4-FY16 (y-o-y) FY16 (y-o-y)
Beds 317 317
Occupied Bed Days 14,533 3.8% 57,299 -9.1%
Average Occupancy Rate 50.4% 48.5%
ALOS 3.02 -1.4% 2.91 -5.7%
ARPOB (Rs./Day) 38,180 9.0% 37,278 18.8%
Revenue (INR mn) 555 13.2% 2,136 8.0%
EBITDA Margin (%) 26.6% 24.9%
16
Milann commences national expansion
Operating Highlights
Q4 FY 16 Q4 FY 15 Growth (y-o-y)
New Registrations 1,122 1,023 9.7%
IVF cycles 340 284 19.7%
Revenue 119 96 24.5%
FY 16 FY 15 Growth (y-o-y)
New Registrations 3,753 3,533 6.2%
IVF cycles 1,311 1,111 18.0%
Revenue 461 403 14.4%
• First centre outside Bangalore opened in
South Delhi in Q4-FY16
• Milann Ranked #1 Fertility Sciences in
India
• Milann’s 4th centre in Bangalore launched in
FY16
• New centres in Chandigarh and Cuttack in
advanced development
17
Expansions and New Centres primary drivers of FY16 CapEx
Capital Expenditures
(INR Million) FY15 FY16
Cancer Centres
Existing Centres 362 339
Expansions 173 528
New Centres 480 (1) 1,250
1,015 2,117
Fertility Centres
Existing Centres 11 48
Expansions 99 -
New Centres 23 64
133 112
Grand Total 1,148 2,229
(1)
(2) Capital expenditures include security deposits
Includes INR 253 million of assets at HCG Regency as a result of
consolidation
• Expansions, technology enhancements
completed at Hubli, KR/DR, Cuttack and
Ahmedabad.
• Invesment of INR 1,250 Mn in new centres,
including 3 new centres that have commenced
operation as of May 31, 2016
18
Year of capex / expansion along with reduction of debt through IPO proceeds
Net Debt Position – FY 2016
• IPO proceeds of INR
2,364 Mn
• Bank term loan retired
from IPO proceeds of
INR 1,470 Mn.
• INR 764 Mn in new
vendor finance against
CapEx for New
Centres
• Net Debt of 2,106 Mn
at 31-Mar-06.
As at As at As at As at As at
INR Million 31-Mar-15 30-Jun-15 30-Sep-15 31-Dec-15 31-Mar-16
Net Debt
Bank Debt 1,983 (1) 1,983 2,199 (1) 2,145 (1) 694 (1)
DPO 650 683 1,050 1,350 1,558
Capital Leases 600 599 600 600 599
Other Debt 190 174 150 130 137
Less: Cash and Equivalents (270) (257) (270) (206) (882) (2)
Net Debt 3,153 3,181 3,729 4,019 2,106
Debt in New Projects
Bank Debt 150 165 211 253 315
Vendor Finance - 77 444 534 764
150 242 656 787 1,079
Net Debt (Excl. New Projects) 3,003 2,939 3,073 3,232 1,027
(1)
(2) Includes 635 mn investment in mutual fund as at Marach 31, 2016
Net of bank balance held as margin money, INR 67 mn as at March 31, 2015, INR 66 min as at Jun 31, INR 71 min as at
Sep 30, 2015, INR 85 min as at Dec 31, 2015 and INR 70 mn as at March 31, 2016
19
Project Update
3 New Cancer Centres operational as of May 2016
Additional 3 Cancer Centres will be operational by March 2017 3 New Milann Fertility Centres will be
operational by March 2017
Location
Bed
Capacity
Project
Cost
Expected
Start Date
Gulbarga, Karnataka 85 245 Q4-FY16
Vishakhapatnam, A.P. 88 295 Q1-FY17
Baroda, Gujarat 60 412 Q1-FY17
Kanpur, U.P. 90 842 Q3-FY17
Borivali, Maharashtra 105 586 Q4-FY17
Nagpur, Maharashtra 115 442 Q4-FY17
Location Start Date
Delhi Q4-FY16
Chandigarh Q2-FY17
Cuttack Q3-FY17
INR in millions
21
Appendix A : Investment Thesis
Industry trends and backdrop
Largest provider of cancer care in India with a proven track record
High quality care provided at a competitive price
Strong management team with successful track-record
1
2
3
4
Investment Thesis www.hcgel.com
22
Cancer prevalence in India estimated to be 3.9mn in 2015
— Estimated 1.1mn new cancer cases reported in 2015
Real incidence could be 1.5x to 2.0x times higher than
reported incidence
— Difference between reported and real cancer incidence due to
under-diagnosis
— Reported incidence of cancer in India based on data from the
cancer registries, which cover < 10% of the population
— Late stage disease presentation due to lack of awareness and
participation in screening programs
For example, women³ participation in breast screening
mammograms4: USA (65%), China (30%) and India (<1%)
¹ Call for Action: Expanding cancer care in India dated July 2015, published by Ernst & Young; 2 ASR-W is a weighted mean of the age-specific incidence rates . The weights are taken from the
population distribution of the ‘World Standard Population‘ defined by WHO, and the estimated incidence rate is expressed per 100,000 population for comparisons between different geographies, as
age is a key determinant of cancer incidence; 3 Age Group 40-69 years; 4 Breast screening mammograms once in 24 months
Investment Thesis
Growing Cancer Incidence in India…
Industry Trends and Backdrop
0.9 1.1 1.6-2.2
3.4
1.7
Africa India(Reported)
India (Real) China US
94 150-200 174 318 123
Estimated
incidence of
cancer in
2015 (mns)
ASR-W2 (per
’00,000)
62% 71%
31%
81% 70%
30%
72% 91%
19% 43%
10% 8%
Breast Cancer Cervical Cancer Head and Neck Cancer
USA UK China India
Cancer Diagnosis at Early Stages (Stage I or Stage II)
Cancer incidence increases with age - India’s
population >50+ years to increase from 228m
(2015) to 262mn (2020)
Demographic factors alone are expected to result
in an increase in cancer incidences of 100,000 to
350,000 cases a year
Tobacco use, alcohol consumption, use of
processed food and air pollution
These factors are expected to result in an
increase in cancer incidences of 350,000 to
450,000 cases a year
Growing awareness and greater public emphasis
on screening and improvements
Expected to result in increased reported cancer
rates
Incidence of Cancer Across Countries¹ Comments1
Key Drivers of Cancer Incidence
Under Diagnosis of Cancer in India¹
Demographic Changes Exposure to Risk Factor Narrowing Diagnosis Gap
www.hcgel.com
1
23 Investment Thesis
¹ Call for Action: Expanding cancer care in India dated July 2015, published by Ernst & Young
.. And significant demand supply gap in cancer care
Industry Trends and Backdrop
Lack of adequate infrastructure and absence of mass screening programs
are key barriers to timely diagnosis
For example, as of 2014, only 30% of cancer centres in India had
advanced imaging technologies like PET-CT
A key requirement for successful radiation therapy is availability of Linear
Accelerators (LINACs)
77 110 137 200
1,238
Africa India China UK US
0.05 0.10 0.31 0.92 6.20
Per mn Incidence Per mn Population
200-250
450-550
2014 2020
342 750-900
~2,000
2015 2020 2020
1.4-2.0
2.3-3.5
2015 2020
Demand for CCCs Demand for LINACs Chemotherapy Cycles (millions)
Region /
Country
Number of
LINACs
(2015)
LINACs per
Million
Population
Cancer
Prevalence
per
LINAC
Cancer
Incidence per
LINAC
US 3,818 11.9 1,572 419
UK 323 5.0 3,096 929
China 986 0.7 6,288 3,144
India 342 0.3 7,310 3,216
Existing Demand Supply Gap in Diagnostics… …and Treatment
Outlook for Treatment Landscape¹
PET CTs per Million New Cases Per Year (Global Comparison)¹
Availability of LINACs¹
(in the absence
of affordability
and availability
constraints)
1
www.hcgel.com
24 Investment Thesis
1 As per AERB as of March 31, 2015. (Source: Government of India, Atomic Energy Regulatory Board) 2 Expected to commence operation during FY2016 and FY2017
Largest Provider of Cancer Care in India with a Proven
Track Record¹
Largest provider of cancer care in India in terms of number of
cancer treatment centres listed by AERB as of 31-Mar-20151
HCG network spans 14 cities and towns across eight states in India
Through the extensive network, HCG is able to provide cancer care
beyond just the metropolitan cities
As of 31-Mar-2015, HCG had 443 specialist physicians including
225 oncologists, 21 radiologists and 23 pathologists and 174 other
specialist physicians
HCG believes, it has a strong reputation within the medical
community, driven by
— Use of advanced technologies
— Successful clinical outcomes
— Extensive clinical experience of specialist physicians
HCG’s market leading position, successful track record and strong reputation in India provides a significant advantage over its
competitors
15 3
12 15
2
9
2006 Additions 31-Mar-16 2017/18
Fiscal Year ended March 31
2013 2014 2015 2016
New Patient
Registrations 28,546 34,344 37,458 37,315
Patients Treated with
Radiation Therapy 10,225 11,181 12,647 12,220
PET-CT Procedures 17,750 21,040 23,988 22,555
Chemotherapy
Administrations 40,052 43,988 48,360 52,052
Largest Cancer Care Provider… …With a Strong Track Record
Growth in No. of Comprehensive Cancer Care Centres…
…Leading to Increase in Patient and Treatment Cycles
Under
Development²
2
www.hcgel.com
25
Ability to manage the large volume of patients across
the network while maintaining quality of clinical
outcomes
For example, the five year survival rate for breast cancer
patients at HCG’s network is comparable to U.S.
benchmarks4
Source: Call for Action: Expanding cancer care in India dated July 2015, published by Ernst & Young 1 PPP adjusted 510-720; 2 PPP adjusted 600-720; 3 PPP adjusted 420-540; 4 Vijay Govindarajan and Ravi Ramamurti, Harvard Business Review, "Delivering world-class health Care, Affordably”,
November 2013
Investment Thesis
High Quality Care Provided at a Competitive Price
Multidisciplinary approach to cancer care - specialist physicians from
various disciplines collaborate to provide the best course of treatment
Focus on identifying and adopting appropriate technology
— Among first cancer care providers in India to standardise molecular
diagnostics technologies
— First healthcare provider in India to perform computer assisted tumor
navigation surgery
Standardized clinical protocols for diagnosis and treatment
Economies of scale arising out of expansive network
— Optimal utilization of equipment
— Centralized drug and consumables formulary
— Large network gives competitive advantage in terms of
favourable economic terms of purchase and financing of
medical equipment
Approach to Providing High Quality Care… …Results in Successful Clinical Outcomes…
…At a Competitive Price
Chemotherapy Surgery Radiation Therapy
60-100
1,100-1,400
India US³
60-100
1,500-1,800
India US²
150-240
1,300-1,800
India US¹
Drivers of HCG’s Cost Competitiveness Cost of Cancer Treatment in India is lower (INR `000)
3
Ability to provide high quality care driven by a multidisciplinary and technology focused approach
www.hcgel.com
26 Appendix
1 Karnataka, Madhya Pradesh and Rajasthan; 2 Gujarat
● Director of the company since 2000
● MBBS, St. John’s Medical College, Bengaluru; Residency in Oncology, Univ. of Virginia Hospital; Residency in Radiotherapy, MD Anderson Hospital, Univ. of
Texas
Dr. BS Ajai Kumar
Chairman and CEO
● 14 years of experience in hospital management and administration, including Fortis and Wockhardt
● MBBS, Univ. of Rajasthan; Master’s degree in Hospital Administration, Administrative Staff College of India
Dr. Mudit Saxena
COO, Region 11
● 13 years of experience in the field of hospital management and administration, including Sterling
● MBBS, Master of Surgery, Maharaja Sagajirao Univ. of Baroda
Dr. Bharat Gadhavi
COO, Region 22
● 30+ years of experience in fertility medicine
● MBBS, St. Johns Medical College, Bengaluru; Master’s degree in Obstetrics and Gynaecology, Univ. of Liverpool
● Awarded the Padma Shri by the President of India (2014)
Dr. Kamini Rao
Medical Director, Milann
● 20 years of experience in sales, marketing, business development and general management in healthcare services
● Bachelor’s degree in Law Bangalore Univ.; Post graduate Diploma in Business Administration, St. Joseph’s College, Bengaluru
Dinesh Madhavan
Director, Healthcare Services
● 20+ years of experience in the field of finance and accounting, including Fortis Healthcare and ITC
● Member of the Institute of Cost and Works Accountants of India and Institute of Company Secretaries of India
Krishnan Subramanian
Chief Financial Officer
● Joined HCG in 2015; earlier Director - Imaging Sales, GE Healthcare (South Asia)
● Member of the Institute of Chartered Accountants of India
Anant Kittur
Director, Projects
● 15+ years of experience in the field of information technology management
● MBBS, Mangalore Univ.; Diploma in Family Medicine, National Board of Examinations
Dr. Ramachandran Balaji
Chief Medical and Information
Officer
● 20+ years of experience in the field of human resource management, including Aster DM and Apollo Hospitals
● Master’s degree in Personnel Management, Univ. of Pune
MC Jayaprakash
Vice President,
Human Resources
● Experienced in the field of establishment and management of hospitals
● MBBS, Bangalore Univ.; MHA, Univ. of New South Wales
Dr. Naveen Nagar
Vice President,
Medical Services
● Been with Company since 2006
● Member of the Institute of Company Secretaries of India
Sunu Manuel
Company Secretary and
Compliance Officer
www.hcgel.com
4 Strong management team with successful track-record
