FY20 Earnings Update July 23, 2020 Private & Confidential - - PowerPoint PPT Presentation

Private & Confidential 1 1 Private & Confidential

BLK: Founded in 1959, Collaborated in 2009 NANAVATI: Founded in 1950, Collaborated in 2014

a passion for healing…

FY20 – Earnings Update

July 23, 2020

Private & Confidential 2 2 Private & Confidential

Disclaimer

The information in this release has been included in good faith and is meant for general purposes only. Such information is based on the management’s perception of business, market conditions and overall growth potential by the relevant parties. This information is disseminated generally and not addressed to any person or party or for any purpose specific or otherwise. It should not be relied upon for any specific purpose and no representation or warranty is given as regards to its accuracy or

• completeness. No information in this release shall constitute an invitation to invest in any of the entities referenced in this announcement or their affiliates. None of the

parties referenced in this announcement (including their affiliates) nor their officers, employees or agents shall be liable for any loss, damage or expense arising out of any action taken on the basis of this release, including, without limitation, any loss of opportunity, profit, indirect, incidental or consequential loss or any actions undertaken based on information provided in this release. Figures presented may have been regrouped where required for ease of comparison Certain statements in this release are forward-looking statements, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statements of historical fact are statements that could be deemed forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding impact of pending regulatory proceedings, non – completion of conditions agreed between parties to the transaction, approval for the merger not being obtained, ability to recognize the anticipated benefits of the merger including potential growth and business synergies, fluctuations in earnings, dependency on good monsoons and other climatic conditions, fluctuations in foreign currencies ability of each of the relevant parties to manage growth, intense competition in the business any other business and corporate actions. There can be no assurance that the forward looking statements made herein will prove to be accurate, and issuance of such forward looking statements should not be regarded as a direct or indirect, express or implied, representation or warranty of any nature whatsoever by any of the relevant parties, or any other person, that the objective and plans envisaged by the parties hereto will be achieved. All forward looking statements made herein are based on information presently available to the management of the relevant entities set out herein and they do not undertake or are in anyway obliged to update any forward-looking statement that may be made from time to time by or on behalf of each of the entities or the proposed transaction. This presentation should not, nor should anything contained in it, form the basis of, or be relied upon in any connection with any contract or commitment whatsoever. This presentation is not intended to be a prospectus (as defined under the Companies Act, 2013, as amended) or an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended.

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Contents Financial and Operational Highlights 9 Appendix Covid-19: Response and contribution 17 Scheme Update 19 About the company 4

• Overview of BLK Hospital

23

• Overview of Nanavati Hospital

30

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About the Company

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Background

• Promoted by Abhay Soi, having in-depth experience in turning around hospitals
• Business of developing & operating high-end quaternary care facilities since 2009
• Meaningful presence in Delhi & Mumbai, the most attractive healthcare markets in India
• Long-term collaboration through Operations & Management arrangements with two iconic

hospitals: — BLK Hospital, Delhi - 650 beds with ~540 census beds — Nanavati Hospital, Mumbai - 350 beds with ~328 census beds

• Backed by KKR, Private equity fund of global repute

Focus on Clinical Excellence

• Established clinical programs with 50+ clinical programs under one roof
• Largest & fastest growing Bone Marrow Transplant program outside N. America in a single

facility

• Amongst India’s most comprehensive cancer care programs, both at Delhi and Mumbai
• Well established program for cardiac care, bone marrow, heart, kidney and liver transplant
• JCI, NABH, NABL accreditations

Strong Team

• Independent board of directors
• Experienced management team with deep expertise in healthcare
• Leading team of ~1,200 doctors (including visiting consultants) across 2 hospitals

Strong Financial Performance(1)

• Track record of value creation

— BLK – Revenue CAGR of 37% from FY10 to FY20 and EBITDA CAGR of 46% from FY13 to FY20 respectively — Nanavati – Revenue CAGR of 19% from FY15 to FY20; FY20 EBITDA of 6.3% compared to negative (15%) EBITDA in FY15 prior to assuming operations

• Well capitalized
• Large medical tourism business – Treated over 20,000 international patients post FY15

CNBC TV 18 Best Multi-speciality Hospital in Metro Award for BLK in 2018

• Best Multi-speciality Hospital North Award,

2019- 20, by ET Healthworld

• Trusted Hospital (Delhi & NCR) Award at

India Today Health Summit, 2018 (Readers’ Digest)

• AHPI Award for Quality Beyond

Accreditation for three consecutive years - 2017, 2018 and 2019

• AHPI Award for Best Hospital to work for -

2016

• ICWAI award for excellence in cost

management – 2017

One Of The Fastest Growing Metro Focused Quaternary Care Service Provider

Note: 1. Revenue and Normalized EBITDA from I-GAAP/ IND AS FS | Does not include corporate overheads

Private & Confidential 6 6 Private & Confidential

Snapshot

2

Facilities

~1,000

Capacity beds ~1,200 # of Physicians

52k

ARPOB(1) (INR/OBD)

~5 lacs

OPD Consults

1 Lac+

IPD & day care Procedures

70%

IPD Occupancy

300+

Covid-19 Beds

Note: 1. ARPOB is calculated as Gross Revenue / Total OBD | Abovementioned numbers are for the year ended March 31, 2020 |

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31 74 125 213 283 378 448 502 521 604 701

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

150 185 240 298 327 357 FY15 FY16 FY17 FY18 FY19 FY20

Consistent Growth to leadership…

+37%

BLK – Net Revenue (INR Cr.)

Nanavati – Net Revenue (INR Cr.)

• Revenue grew at a CAGR of ~37% during

FY10 to FY20 from INR 31 Cr to INR 701 Cr

• Leading healthcare provider in Central Delhi
• Capacity for expansion by 190 beds
• Revenue grew at a CAGR of 19% from

commencement of O&M arrangement in FY15 to INR ~357 Cr in FY20

• Turnaround of operations from negative

(15%) EBITDA to ~6.3% margin in FY20

• Brownfield capacity for expansion by 550+

beds

+19%

Note: Based on I-GAAP Financials/ MIS. Revenue excludes ‘Other operating income’

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Board of Directors

• Mr. Abhay Soi

Chairman and Managing Director  Founder promoter of Radiant Life Care  Co-founded a USD 300 million Special Situations Fund, with investments across sectors  Instrumental in setting up financial restructuring business in Andersen and subsequently led the restructuring services team of E&Y  Successfully turned around BLK and Nanavati and made Radiant among the fastest growing and most efficient company in the hospital space  BA from St. Stephens, Delhi and MBA from European University, Belgium

• Mr. Mahendra G Lodha

Director  Veteran in the field of Corporate Advisory, Corporate Financing and Restructuring space in India.  On the boards of several public and private companies including Max Healthcare Institute Limited and Nitrex Chemicals India Limited.  A qualified Chartered Accountant

• Mr. Sanjay Nayar

Director  CEO and Country Head for Kohlberg Kravis Roberts & Co (KKR) in India.  On the boards of several portfolio companies of KKR including, Avendus Capital Private Limited, KKR India Financial Services Limited, KKR India Advisors Private Limited  Prior to KKR, he was the CEO of Citigroup India and South East Asia.  MBA in Finance from the Indian Institute of Management, Ahmedabad and a bachelor in Mechanical Engineering from Delhi University

• Mr. Prashant Kumar

Director  Managing Director for Kohlberg Kravis Roberts & Co (KKR) private equity team  Prior to KKR, he was a director and member of the Investment committee at ChrysCapital, and previously with Warburg Pincus, Karsch Capital Management and Sun Capital  B.Tech. from the Indian Institute of Technology Delhi, post-graduate diploma in management from the Indian Institute of Management Kolkata, and an M.B.A. from The Wharton School at the University of Pennsylvania

• Mr. Narayan K Seshadri

Director  35+ years of experience; Started his business consultancy career with Arthur Anderson  Previously worked with KPMG, and is also on the Boards of Magma Fincorp Limited, PI Industries Limited, SBI Capital Markets Limited and The Clearing Corporation of India Limited  A qualified Chartered Accountant

Private & Confidential 9 9 Private & Confidential

Financial & Operational Highlights

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928 1,067 22 FY19 FY20 20 23 2 FY19 FY20 118 142 12 FY19 FY20

Radiant Life Care Private Limited

Financial Snapshot

EBITDA (INR Cr.)(1)

Actual EBITDA

Net Revenue (INR Cr.)

Normalization Impact(3) Actual Revenue

• Growth of 15% in FY20 net revenue despite Covid-

19 impact. On a normalized basis, revenue could have been INR 1,089 Cr (17% YoY growth). ARPOB and occupancy both contributed to growth

• Growth of 21% in FY20 EBITDA. On a normalized

basis, EBITDA could have been INR 154 Cr (31% YoY growth)

• FY20 EBITDA/bed grew from INR 20 lacs to INR 23
• lacs. On a normalized basis, EBITDA/bed could have

been INR 25 lacs (27% YoY Growth)

Margin (%)(2)

FY19 : 12.7% | FY20 : 13.3% | FY20 (Norm.) : 14.1% 31% 21% 154 1,089

Gross Revenue (INR Cr.)

EBITDA per bed (INR lacs)

25 15% 18% 27%

Normalization Impact (3) Normalization Impact (3) Actual EBITDA/Bed

Note:1. EBITDA based on IND AS financials including IND AS 116 impact. Pre IND AS 116 EBITDA is INR ~135 Cr | 2. EBITDA margin is calculated on Net revenue | 3. Normalization is based on management estimates 17%

FY19 : 999 | FY20 : 1,159

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Radiant - Improving Operational Metrics (1/2)

71 66 68 70

Q4FY19 Q4FY20 FY19 FY20

• Avg. Inpatient Occupancy %

49 55

46

52

Q4FY19 Q4FY20 FY19 FY20

ARPOB (INR / OBD) (‘000)(1)

• 8.0%

+12.1% +3.4% +12.5%

• ARPOB grew by 12.5% over FY19, while
• ccupancy grew by 3.4%, primarily driven

by specialty mix and growth in day care procedures

• Occupancy dipped in Q4 FY20 due to Covid-

19 impact mainly in the last 2 weeks of Mar’20

4.9 4.8

4.8 4.8

Q4FY19 Q4FY20 FY19 FY20

ALOS (In days)(2)

• 1.0%
• 1.3%

Note: 1. ARPOB calculated as Gross Revenue / Total OBD Note 2:. ALOS calculated for discharged IP patients only

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Radiant - Improving Operational Metrics (2/2)

11 11 45 47 Q4FY19 Q4FY20 FY19 FY20

Inpatient Procedures (‘000)

113

111

• 405

476

Q4FY19 Q4FY20 FY19 FY20

Outpatient Consults (‘000)

• 4.1%
• 2.1%

+17.5% +4.8%

• In FY20, IP procedures grew by 4.8% and day care

procedures grew by 17.9% over FY19

• In FY20, OP consults grew by 17.5% over FY19
• IP procedures and OP consults dipped in Q4 FY20

due to Covid-19 impact in March

― Over 60% drop in OP consults towards March

end compared to first 2 weeks of the month

13

15

48

56 Q4FY19 Q4FY20 FY19 FY20

Day care Procedures (‘000)

+15.5% +17.9%

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Performance Overview (BLK & Nanavati) Financials (I-GAAP)(1)

Particulars INR Cr.

BLK Hospital(2) Nanavati Hospital

FY19 FY20 FY19 FY20 Net Revenue 604 701 327 357 (-) Direct Costs Material Costs 158 175 72 71 Clinician Payout 94 101 83 96 Contribution 353 425 172 190 Contribution Margin % 58.4% 60.6% 52.5% 53.1% (-) Personnel Cost 130 149 103 114 (-) Other Indirect Overheads 113 156 51 54 EBITDA 110 120 18 22 (+) Adjustments for one-time transactions 3 5

• 1

Normalized EBITDA 113 125 18 23 EBITDA Margin % 18.7% 17.8% 5.4% 6.3% (-) Corporate Overheads 5 7 3 3 EBITDA after Corporate Overheads 108 118 15 20 EBITDA Margin % 17.9% 16.9% 4.6% 5.6%

Note: 1. Based on unaudited I-GAAP financials | 2. BLK also includes performance of Radiation Oncology operated by Radiant

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Performance Overview Consolidated

Financials (IND AS)(1)

Particulars (INR Cr.)

BLK Hospital(4) Nanavati Hospital Radiant Consolidated(3)

FY19(2) FY20 FY19(2) FY20 FY19(2) FY20

Net Revenue (Incl. Other Operating Inc.)

599 709 328 358 928 1,067

(-) Direct Costs Material Costs

157 174 71 71 228 245

Clinician Payout

125 142 94 105 216 247

Contribution (Excl Non Op Income)

317 394 163 182 484 575

Contribution Margin %

53.0% 55.5% 49.6% 50.8% 52.2% 53.9%

(-) Personnel Cost

103 111 97 104 208 230

(-) Other Indirect Overheads

105 160 66 40 214 246

EBITDA

109 123

• 0.3

38 62 99

(+) Adj. for Contingent Consid. (IND AS)

5 6 14

• 12

19

Operating EBITDA/ Computed EBITDA

114 129 14 26 81 99

EBITDA Margin %

19.1% 18.1% 4.2% 7.2%

(-) Corporate Overheads

5 7 3 3

(+) Adj. for One time/ Transaction cost

37 43

Adjusted EBITDA

109 122 11 22 118 142

EBITDA Margin %

18.2% 17.2% 3.4% 6.3% 12.7% 13.3%

(+) Non Op Inc. (Incl. Cont consid) (IND AS)

15 41

(-) Finance Cost

49 83

(-) Depreciation

45 46

Profit before tax

• 17

10

(-) Tax

6

• 0.4

Profit after tax

• 23

10

Note: 1. Financials based on audited IND AS FS and Grouping has been done wherever applicable | 2. FY19 numbers have been reclassified for like to like comparison with FY20 | 3. Radiant consolidated includes BLK, Nanavati, Radiant Standalone and its subsidiaries | 4. BLK also includes performance of Radiation Oncology operated by Radiant

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EBITDA Reconciliation

INR Cr Particular FY19 FY20 Details Amount Details Amount 1 EBIDTA working as per consolidated Ind AS financial statement: Profit before Tax (PBT) (17) 10 Add: Depreciation 45 46 Add: Finance Cost 49 83 Add: Contingent Consideration 19 (6) Less: Non operating Income (15) (35) Computed EBITDA 81 99 2 Other non operating income – Eliminated Less: EPCG Income recognized in IND AS (4) (4) (9) (9) 3 One time expenses / Non Operating Expense - Added back Add: Onetime/ Transaction expenses 30 45 Add: GST expenses on Management fees 7 7 Add: One time compensation paid for insourcing of Ophthal. services 2

• Add: One time additional PF liability pursuant to Supreme Court ruling

2 41

• 52

Total Adjustments ( 2 + 3 ) 37 43 Adjusted IND AS EBITDA 118 142 4 Differences between I-GAAP and IND AS - Impact reversed Add: Impact of IND AS 116 (7) Add: Other IND AS Adjustments 5 3 Total Adjustments ( 2 + 3 + 4) 5 4 Derived EBITDA as per I-GAAP 123 138

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Particulars (INR Cr) Mar 31, 2018(1&2) Mar 31, 2019(1&2) Mar 31, 2020(1) Gross Debt (excludes loan to MHIL) 364 276 415(3) Net Debt (excludes loan to MHIL) 168 (84) 279(3) Net Worth 337 630 2,627/ 2,500(4) Capital Employed 524 595 689(5) Invested Capital 912 1,004 1,090(5&6) Tangible Fixed Assets (Gross Block Incl. CWIP) 472 618 660 Return on Capital Employed (ROCE) 6.8% 13.0% 15.0% Return on Invested Capital (ROIC) 4.5% 6.9% 9.2%

Consolidated Ind AS Financials Position Overview

Note: 1. Financials based on Ind AS accounting | 2. Figures have been regrouped from audited financials where required | 3. Excludes INR 440 Cr given to Max Healthcare as shareholder loan, IND AS 116 lease liability of INR 20 Cr and IND AS EIR effect of INR 3 Cr | 4. Net worth is for consolidated business and Radiant’s healthcare business respectively | 5. Excludes capital infusion for investment of INR 2,136 Cr in Max Healthcare I 5. Excludes INR 440 Cr and downstream investment in Max Healthcare I 6. Invested Capital Includes accumulated losses of past years

Pursuant to Scheme of Amalgamation and Arrangement, Radiant’s healthcare business (BLK & Nanavati) has been demerged from Radiant and merged with MHIL as on June 01, 2020

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Covid-19: Response & Contributions

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Covid-19: Response & Contributions

Our response:

• Among the first to offer 100+ beds in Mumbai for Covid -

19 care

• Set up medical processes in conjunction with government

healthcare authorities — Formulated detailed clinical protocols for clinical management and infection prevention — Created isolation areas for segregation — Provided intensive training to frontline medical personnel

• Introduced homecare service for Covid-19 patients with

mild symptoms

• Effectively managed supply chain to prioritize availability
• f Covid-19 related materials
• Implemented measures to conserve cash including

material rate renegotiations and deferment of discretionary expenses ― Strong balance sheet to support operation

• Strengthened digital platforms to significantly ramp up

tele/video consultations

Key Contributions during Covid-19:

• Offered more than 300(1) Covid-19 beds
• Served more than ~1,900(1) Covid-19 patients
• Tested over 17,000(1) patients
• First of its kind convalescent plasma therapy trial for

critically ill patients

• Successfully performed more than 350 Cancer

surgeries during Covid-19

• Performed a complicated Liver Transplant surgery
• n a ‘10 month old baby boy
• Successfully managed a ‘13 year old boy who had a

rare disorder linked to Covid-19 complication (multisystem inflammatory abnormal syndrome)

• Saved life of a ‘74 year old heart patient by

performing TAVR amidst challenges of lockdown

• Initiated multiple Covid-19 related research projects

including sero studies, genomic studies and Favipiravir study

• Participating in the WHO SOLIDARITY trial in

partnership with ICMR

Note: 1.As on July 15, 2020

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Scheme Update

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Scheme Update

• National Company Law Tribunal (NCLT) approved the Composite Scheme of Amalgamation and

Arrangement (Scheme) involving the demerger of healthcare business of Radiant Life Care Pvt. Ltd. (Radiant) into Max Healthcare Institute Ltd. (MHIL) and amalgamation of residual Max India Ltd. (MIL) with MHIL post demerger of allied health and associated activities into Advaita Allied Health Services Ltd.: ― Demerger and amalgamation pursuant to Scheme effective June 01, 2020

• All MIL shareholders, as on the record date (June 15, 2020), have been allotted shares of MHIL as

per the share exchange ratio set out in the approved Scheme

• All Radiant shareholders, as on record date (June 01, 2020), have been allotted shares of MHIL as per

share entitlement ratio set out in the approved Scheme

• Listing of MHIL expected by August 2020 subject to receipt of approvals

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Combined Entity - Structure

MHIL

47.0%  52.0% 12.0%  7.0% 23.3% 17.7%

KKR to acquire additional 4.99% stake of Merged Entity from Max Promoters

KKR Abhay Soi Max Promoter Public & Others Max Promoter Public & Others

• KKR to acquire 4.99% stake of MHIL from Max Promoters
• Going forward, Radiant promoter Abhay Soi and KKR to be the promoters of MHIL, while current Max

promoters will be reclassified as shareholders

Note: Shareholding post allotment of shares in accordance with the scheme

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Appendix

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Overview of BLK Hospital

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109 122 9 FY19 FY20

BLK Super Speciality Hospital, Delhi

Financial Snapshot

EBITDA (INR Cr.)(1)

599 709 16 FY19 FY20

Net Revenue (INR Cr.)

• Growth of 18% in FY20 net revenue despite Covid-19
• impact. On a normalized basis, revenue could have been

INR 725 Cr (21% YoY growth)

• Growth of 12% in FY20 EBITDA. On a normalized basis,

EBITDA could have been INR 131 Cr (20% YoY growth)

• FY20 EBITDA/bed grew from INR 30 lacs to INR 31 lacs.

On a normalized basis, EBITDA/bed could have been INR 33 lacs (11% YoY Growth)

21% 18% 20% 12%

131 721 721 725 30 31 2 FY19 FY20

EBITDA per bed (INR lacs)

Normalization Impact(3) Actual Revenue Normalization Impact (3) Actual EBITDA

11% 33

Note:1. EBITDA Based on IND AS financials including IND AS116 impact. Pre IND AS 116 EBITDA is ~INR 117 Cr . EBITDA is calculated after Corporate Overheads | 2. EBITDA margin is calculated on Net revenue. | 3. Normalization is based on management estimates

3%

Normalization Impact (3) Actual EBITDA/bed

Margin (%)(2)

FY19 : 18.2% | FY20 : 17.2% | FY20 (Norm.) : 18.0%

International Revenue (%.)

FY19 : 24% | FY20 : 23%

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BLK - Improving Operational Metrics (1/2)

72 68

67

73

Q4FY19 Q4FY20 FY19 FY20

• Avg. Inpatient Occupancy %
• 5.9%

+9.0%

• ARPOB grew by 10.2% over FY19 while occupancy

improved by 9% from 67% to 73%. Key drivers primarily specialty mix and growth in day care procedures

• Occupancy was driven mainly due to specialty

growth and channel mix

• Occupancy dipped in Q4 FY20 due to Covid-19

impact in the last 2 weeks of Mar’20

50 56

49

54

Q4FY19 Q4FY20 FY19 FY20

ARPOB (INR / OBD) (‘000)(1)

+11.6% +10.2% 4.8 4.7 4.6 4.6 Q4FY19 Q4FY20 FY19 FY20

ALOS (In days)(2)

• 1.4%

+0.0%

Note: 1. ARPOB calculated as Gross Revenue / Total OBD Note 2:. ALOS calculated for discharged IP patients only

Gross Revenue (INR Cr.)

FY19 : 647 | FY20 : 773

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BLK - Improving Operational Metrics (2/2)

8 7 29 32

Q4FY19 Q4FY20 FY19 FY20

Inpatient Procedures (‘000)

75 75

• 263

325

Q4FY19 Q4FY20 FY19 FY20

Outpatient Consults (‘000)

• 3.3%
• 0.1%

+23.6% +8.0%

• In FY20, IPD procedures grew by 8% and day care

procedures grew by 16.5% over FY19

• In FY20, OP Consults grew by 23.6% over FY19
• IPD procedures and OP consults dipped in Q4 FY20

due to Covid-19 impact in March

― Over 60% drop in OP consults towards March

end compared to first 2 weeks of the month

9 10 35 40

Q4FY19 Q4FY20 FY19 FY20

Day care Procedures (‘000)

+7.6% +16.5%

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Centres of Excellence for High End Quaternary Care

• Share of tertiary and quaternary

specialties improved by 445 bps from 68.6% in FY19 to 73.0% in FY20

• Among the focus specialties
• ncology (incl BMT) continues to

be the fastest growing despite the largest share

• Efforts on further driving high end
• fferings in the focus specialties

24% 11% 8% 11% 7% 7% 32% 26% 10% 7% 15% 6% 9% 27%

FY19 FY20

Oncology(1) +2% Orthopedics +4% Gastro Enterology +2%(2) Others

• 5%

Renal(3) Cardiac sciences Neuro sciences

Note: 1. Oncology includes bone marrow transplant (BMT), Chemotherapy and Radiotherapy Note: 2:.Gastroenterology includes liver transplant Note: 3. Renal includes kidney transplant

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BLK Super Speciality Hospital, Delhi

State-of-the-Art Infrastructure

Day care (100 beds) ICCU (125 ICU beds) Central Reception 17 OTs & 2 Cath Labs OPD Blocks (70 OPD chambers) Hospital Facade View

1959

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BLK Super Speciality Hospital, Delhi - Covid-19: Significant

initial impact from Covid 19 followed by sharp recovery

73 77 75 75 76 76 72 77 67 72 76 56 30 33 53

Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Occupancy (%)

56 65 61 65 62 64 60 66 60 62 60 54 24 29 37

Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Gross Revenue (INR Cr.)

• Occupancy rate dropped sharply in the end
• f March to 30% and continued to remain

subdued during April- May

• Overall impact of ~ INR 16 Cr on revenues in

Mar’20 and ~ INR 9 Cr in EBITDA

• Gradual recovery in occupancy witnessed

across the network since end of May/June 2020

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Overview of Nanavati Hospital

Private & Confidential 31 31 Private & Confidential

328 358 7 FY19 FY20 11 22 3

5 10 15 20 25 30

FY19 FY20

Nanavati Super Speciality Hospital, Mumbai

Financial Snapshot

EBITDA (INR Cr.)(1)

Actual EBITDA (INR Cr.)

Net Revenue (INR Cr.)

Actual Revenue (Rs. Cr)

• Growth of 9% in FY20 net revenue despite Covid-

19 impact. On a normalized basis, revenue could have been around INR 364 Cr (11% YoY growth)

• Growth of 99% in FY20 EBITDA. On a normalized

basis, EBITDA could have been INR 25 Cr (126% YoY growth), given the improvement in ARPOB and significant savings across cost lines

• FY20 EBITDA/bed grew from INR 5 lacs to INR 10
• lacs. On a normalized basis, EBITDA/bed could

have been INR 12 lacs (139% YoY Growth)

126% 99% 25 721 9% 721 11% 364 5 10 2 FY19 FY20

EBITDA per bed (INR lacs)

12 111% 139%

Normalization Impact (3) Actual EBITDA/Bed Normalization Impact(3) Normalization Impact (3)

Note:1. EBITDA Based on IND AS financials. Pre IND AS 116 EBITDA is ~INR 20 Cr. EBITDA is calculated after Corporate Overheads | 2. EBITDA margin is calculated on Net revenue | 3. Normalization is based on management estimates Margin (%)(2)

FY19 : 3.4% | FY20 : 6.3% | FY20 (Norm.) : 7%

International Revenue %

FY19 : 2% | FY20 : 4%

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Nanavati - Improving Operational Metrics (1/2)

69 62 69 65 Q4FY19 Q4FY20 FY19 FY20

• Avg. Inpatient Occupancy %

47 53 43 49 Q4FY19 Q4FY20 FY19 FY20

ARPOB (INR / OBD) (‘000)(1)

+12.7% +15.7%

• ARPOB grew by 15.7% over FY19 while occupancy

dropped 5.5%. Primarily driven by growth in day care procedures and improvement in ALOS

• Occupancy dipped in Q4 FY20 due to Covid-19

impact in the last 2 weeks of Mar’20

• 5.5%
• 11.5%

5.1 5.1 5.2

5.0

Q4FY19 Q4FY20 FY19 FY20

ALOS (In days)(2)

0.1%

• 3.2%

Note: 1. ARPOB calculated as Gross Revenue / Total OBD Note 2:. ALOS calculated for discharged IP patients only

Gross Revenue (INR Cr.)

FY19 : 352 | FY20 : 385

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Nanavati - Improving Operational Metrics (2/2)

38 36

• 142

150 Q4FY19 Q4FY20 FY19 FY20

Outpatient Consults (‘000)

• 6.2%

+6.2%

• In FY20, day care procedures grew by 21.5% over

FY19

• In FY20, OP Consults grew by 6.2% over FY19
• IPD procedures and OP consults dipped in Q4 FY20

due to Covid-19 impact in March

4 4

16 15 Q4FY19 Q4FY20 FY19 FY20

Inpatient Procedures (‘000)

• 5.7%
• 1.2%

4 5 13 16

Q4FY19 Q4FY20 FY19 FY20

Day care Procedures (‘000)

+36.1% +21.5%

Private & Confidential 34 34 Private & Confidential

Centres of Excellence for High End Quaternary Care

• Share of tertiary and quaternary

specialties maintained same at ~63% in FY20 as compared to FY19

• Focus on further driving high end
• fferings in the focus specialties

15% 11% 11% 8% 9% 7% 3% 36% 15% 11% 11% 8% 8% 7% 3% 37%

FY19 FY20

Orthopedics Neuro Sciences Gastro enterology(2) Others Renal(3) Cardiac sciences Oncology(1) General Medicine

Note: 1. Oncology includes bone marrow transplant (BMT), Chemotherapy and Radiotherapy Note: 2:. Gastroenterology includes liver transplant Note: 3. Renal includes kidney transplant

Private & Confidential 35 35 Private & Confidential

Nanavati Super Speciality Hospital, Mumbai

State of the Art Infrastructure

Hospital Facade View 25 Day Care beds 350 beds, including 75 ICU beds Cath Lab 10 OTs & 3T MRI with HIFU Open-air Terraces (for patients and attendants)

Private & Confidential 36 36 Private & Confidential

Nanavati Super Speciality Hospital, Mumbai - Covid-19:

Significant initial impact from Covid 19 followed by sharp recovery

64 59 62 71 79 74 66 65 63 63 67 56 41 48 56

Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Occupancy (%)

30 31 30 32 36 31 30 32 33 36 32 27 17 20 20

Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Gross Revenue (INR Cr.)

• Occupancy rate dropped sharply in end

March to ~40% and continued to remain subdued during April- May

• Overall impact of ~ INR 7 Cr on revenues in

Mar’20 and ~ INR 3 Cr in EBITDA

• Gradual recovery in occupancy witnessed

across the network since end of May/June 2020

Private & Confidential 37 37 Private & Confidential

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