Max India Limited Investor Presentation February, 2015 - - PowerPoint PPT Presentation

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Max India Limited

Investor Presentation February, 2015

BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:IN

www.maxindia.com

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MAX GROUP - OVERVIEW

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

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“ IN THE BUSINESS OF LIFE ” Life Insurance Protecting Life Healthcare Caring for Life Health Insurance Enhancing Life

74:26 JV* with Mitsui Sumitomo; Largest non bank lead private life insurer Equal JV^ with Life Healthcare, SA; 2,000 beds 74:26 JV with BUPA Finance Plc, UK

Our Businesses

Multi-business corporate Focused on people and service

Focus on healthcare, children and the environment

Corporate Social Responsibility Senior Living

100% Owned; Continuing Care Retirement Community in Dehradun Niche high barrier polymer films & Leather Finishing Foils

Speciality Films Clinical Research

100% owned; Being divested

*Max India currently holds 72.1% in Max Life ^Current holding in MHC is Max India-46%, Life Healthcare-46% and IFC-7.5%

INR 116 billion+ Revenues*… INR 120 billion MCap… 5 Mn+ Customers… 18,000 Employees… 55,000+^ Agents… 2,100+ 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

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A unique investment opportunity and a resilient business model

1 2 3 4 5 6 7

Pharma Electronic Component Mobile Telephony Communication Services Plating Chemicals Medical Transcription

Hutchison

COMSAT

ATOTECH

*Total Revenue for FY14, ^Across Life and Health Insurance

Life Insurance

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Growth potential recognized by the market…. high pedigree investor base

• Temasek
• Fidelity
• Norges
• New York Life
• Jupiter
• GIC
• Comgest
• Reliance MF
• ICICI Prudential MF

Shareholding Concentrated with Marquee Investors

Number of outstanding shares : 26.65 Cr.

Promoters 40.5% IFC 3.1% Goldman Sachs 15.5% FII (Others) 18.6% Mutual Funds 12.2% Others 10.1%

Shareholding Pattern as on Dec 31, 2014

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4508 5574 6668 7643 8180 9139

2000 4000 6000 8000 10000 FY 09 FY10 FY11 FY12 FY 13 FY14

Operating Revenue Trend

Rs Cr. Rs Cr.

Consistent track record of strong growth across businesses with the group turning strong profits

FY 10 FY 11 FY 12 FY 13 FY 14 Net Worth 1,993 1,944 2,513 2,903 2,984 Loan Funds 440 507 549 676 702 Net Fixed Assets 965 1,017 1,256 1,361 1,495 Treasury Corpus 909 540 397 409 235 Life Ins. AUM 10,121 13,836 17,215 20,458 24,716 FY 10 FY 11 FY 12 FY 13 FY 14 Operating Revenue 5,574 6,668 7,648 8,180 9,139 Investment and Other Income 2,087 1,223 914 2,444 2,544 Total Revenue 7,661 7,891 8,562 10,624 11,683 Profit / (Loss) before Tax (86) 32 242 991* 274

(333) (86) 32 242 197 274

• 400
• 300
• 200
• 100

100 200 300 400 FY 09 FY10 FY11 FY12 FY 13 FY 14

Profitability Trend

Rs Cr. * Investment & Other Income and PBT for FY13 includes income from stake sale in Max Life amounting to Rs. 802 Cr and Rs.794 Cr, respectively. However, PBT for FY13 has been appropriately adjusted in the chart to reflect proper trends

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Max India Max Life Max Bupa

• In-principle understanding achieved with Bupa for resetting the JV to 51:49. Cash

inflow of Rs. 182 Cr. assuming implementation by March 31, 2015

• GWP for Q3FY15 up 18% to Rs. 90 Cr. while B2C GWP grows 47%
• Average premium realization up 22%; Conservation ratio highest ever at 93%

Max India – Q3FY15 Key Highlights

• Structural clarity to be achieved by vertical split of Max India into 3 separate

listed entities with mirror shareholding and divestment of clinical research:

• Max Financial Services (Life Insurance)
• Max India (Healthcare, Health Insurance, Senior Living, Corporate Management

Services and others)

• Max Ventures and Industries (Specialty Films)
• Max Neeman in the process of being divested to a Canadian CRO for US 1.5 Mn
• GWP grows 11% to Rs. 2052 Cr. While APE grows 8%
• Expense ratio improves from 26.3% to 25.2%
• AUM grows 26% to Rs. 29,262 Cr.
• Conservation ratio up 80 bps to 81.7%

Max Healthcare

• IFC investment of Rs. 31 Cr. to maintain shareholding at 7.5% and redemption of

preference shares implemented. Max India and LHC to hold 46% stake each

• Revenue grows 22% to Rs. 437 Cr.
• EBITDA grows 34% to Rs. 42 Cr.

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MAX LIFE INSURANCE COMPANY (Max Life)

www.maxnewyorklife.com

2.2% 2.6% 2.3% 2.5% 2.5% 4.1% 4.0% 4.0% 4.6% 4.4% 3.4% 3.2% 3.1%

Max Life Insurance

FY02 FY00 FY01 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY14 FY13 Phase 1 – Joyful Entry (2000-2003) Phase 2 –Expansion (2004-2008) Phase 3 – Discovering New Normal (2009 onwards) LIC

Private Players

100% 98% 94% 85% 75% 66% 64% 50% 43% 48% 54% 63% 62% 10 12 12 14 16 21 40 53 47 55 50 48 47 45 62%

• Global Financial crisis/ Bearish Indian Stock Market
• Frequent regulatory interventions
• Equity Bull Run
• ULIP introduced by private players
• Entry of Private Players
• Introduction of Bancassurance

Insurance penetration Individual FYP adjusted for Single Premium (`'000 Cr.)

xx

Source: IRDA Annual Report 2013-14

Indian life insurance industry has evolved since the opening up of the sector in 2000

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Top bank-led insurers observed linked products gaining momentum driven by robust capital markets

KEY INSIGHTS

Apr-Dec’13 Apr-Dec’14

• ICICI Prudential (YoY: +37%) and HDFC Life (YoY: +29%) recorded phenomenal growth driven by UL surge (result of customer pull due to

buoyant equity markets)

• Increased contribution from UL products led to significantly higher case sizes. However, count of new customers added to the book was seen

depleting which reflects reduced activity

• SBI Life is known to have skewed it’s product portfolio to linked products starting December 2014 across key distribution channels
• Top agency led players like Reliance Life and Birla Sunlife continue to have a Traditional heavy portfolio
• Max Life’s UL share accounted for 30% of total portfolio as a result of increased customer demand

SOURCE: Market Intelligence & Internal Estimates | Public Disclosures 70% 55% 32% 21% 40% 14% 16% 30% 31% 38% 10% 23% 14% 15% 37% 41% 50% 63%

Max Life Reliance Life SBI Life Birla Sunlife HDFC Life ICICI Pru Par Non Par ULIP

58% 15% 45% 45% 23% 14% 12% 69% 33% 23% 19% 2% 30% 16% 23% 32% 58% 84%

53%

• 26%

5%

• 35%
• 54%

0%

• 11%

14% 5% 14% 19% 21% 22% 5% 8%

LIC Private Total Max Life

Oct-Dec’13 Jan- Mar’14 Apr-Jun’14 Jul-Sep’14 Oct-Dec’14

9.1% 10.0% 8.4% 10.3% 7.5% 12.3% 11.6% 9.6% 9.7% 9.5%

Last Year Max Life's Private Market Share Present

Private industry grew by 1% excluding ICICI Prudential & HDFC Life

Max Life has remained the most consistent player delivering growth

Multi-channel Distribution model

• Highly efficient and productive agency

channel with focus on quality of advice

• Best in class training capabilities within the

industry

• Bancassurance relationship with Axis Bank

is benchmark in the industry

Financially sound*

• Capital Base of `2,127cr
• Solvency ratio of 487% (one of the highest)
• Assets under management of `29,262cr

Long term Savings and Protection

• Comprehensive product suite
• Long tenor products and young customers
• Product mix : Par 58%, Non-par 12%, ULIP

30%

Quality & Business Excellence

• ISO Certification, strong feedback

processes & robust 6 sigma program

• Focus on Service excellence & Operational

efficiency

• Joint Venture between

– Max India Ltd. (leading Indian multi- business corporate) – Mitsui Sumitomo Insurance Co. Ltd. (Member of MS&AD group which is amongst top 10 general insurers in the world)

• Strong management team with proven

execution capabilities

Superior Customer Retention

• Top quartile position among major private

players in 9MFY2015 in – Surrender to gross premium ratio at 34% (No.1) – 13 M persistency at 79% (No.1) – Conservation ratio at 83% (No.2)

• “Treating Customers Fairly" framework

adopted to drive our customer centricity agenda

Strong Parentage

*for the period H1 FY 2015

Max Life has distinct competitive strengths which will help succeed in the new era

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Max Life continues to maintain top quartile performance amongst top private insurers on agency efficiency parameters

SOURCE: Market Intelligence & Internal Estimates | Public Disclosures Note: Agency productivity calculated using FYP (100% SP)

Average Agent Productivity

In Rs. 000's per month

Average Branch Productivity

In Rs. Lakhs per month

Industry Performance

Majority of the insurers are known to have increased focus on productivity solutions as industry attractiveness has reduced due to agent give-get ratio declining

Max Life’s Performance

Continues to lead in the productivity parameters (both agent productivity and branch productivity)

H1 FY 2014 H1 FY 2015

10.0 10.7 5.1 4.6 4.9 3.9 9.8 8.6 6.2 6.2 4.4 4.0 SBI Life Max Life Reliance Life HDFC Life ICICI Pru Birla Sunlife 6.9 13.1 6.4 6.7 19.8 14.2 6.1 13.5 8.3 6.2 19.0 14.1

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Protection Oriented, Longer Tenor Life Insurance

0.1 DEFERRED ANNUITY 5.9 MONEY BACK UNIT LINKED 1.9 TERM 16.8 WHOLE LIFE PROPORTION OF POLICIES (%, by number) PRODUCT TYPE Tenure (Years) Age of Insured (Years) Max Life Average Max Life Average ENDOWMENT 38.5 As on 31th Dec 2014 HEALTH GUARANTEED INCOME 1.9 0.4 34.5

33 34 35 41 30 36 39 44 43 16 26 17 15 15 14 19

20 35

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1595 1584 1724 1506 1513 1769 5405 10,121 13836 17215 20458 24716 5000 10000 15000 20000 25000 30000 1200 1300 1400 1500 1600 1700 1800

FY 09 FY10 FY11 FY12 FY 13 FY 14

New Business Growth – Adjusted FYP 1 and AUM

AFYP (Rs cr) AUM (Rs cr)

Track record of strong performance

2014 3011 3751 4489 4739 5017 82% 83% 81% 81% 78% 80% 30% 60% 90% 1000 2000 3000 4000 5000 6000

FY 09 FY10 FY11 FY12 FY 13 FY 14

Renewal premium and conservation ratio 2

Renewal Premium (Rs cr) Conservation Ratio 94 123 155 152 169 200 2.6 3.0 3.4 3.5 3.5 3.6 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 50 100 150 200 250

FY 09 FY10 FY11 FY12 FY 13 FY 14

In force business and No. of policies

Sum Asssured (Rs 000's cr) Policies million

• 1. Individual First Year Premium adjusted for 10% single pay
• 2. Conservation ratio = Renewal premium for the current period / (First Year + Renewal Premium for the previous period)

1% 3% 6% 9% 9% 10% 3% 4% 23% 41% 49% 53% 22% 22% 22% 14% 8% 8% 75% 71% 50% 36% 34% 29% 0% 20% 40% 60% 80% 100% FY09 FY10 FY11 FY12 FY13 FY14

Distribution Mix

Group Bancassurance Partnership Distribution Own Channel

17 Funds performance Claims Settlement Product Innovation Business Excellence and Quality Brand Technology HR Practices CIO 100 Award for technology implementation (2008/2009/2010/2011) Funds Performance Outlook Money award in Top Quartile across all categories (2011) Amongst India's Top 100 Best Companies to Work for (2011, 2012, 2013, 2014) by Great Places to Work Shiksha Plus II ranked ‘Best Child Plan’ in India by Money Today Golden Peacock Award for Max Vijay ET Wealth rated Max Life claims settlement highest in the Industry at 99.58% Swiss Re commendation for claims settlement TAT (2012)s Brand Excellence Award and recognition as Superbrand (2010-11,2013-14), AIMA Loyalty Award 2012 for Best Loyalty Practices, EFFIE’s Award for Aapke Sacche Advisor Campaign in 2012 ASQ ITEA Bronze award; CII Commendation for Business Excellence (2008, 2009 & 2010) CII 2nd Prize in Project of the Year Global Finance – Best Life Insurance Company, India 2014

Accreditations and Awards

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MAX HEALTHCARE (MHC)

www.maxhealthcare.in

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Indian healthcare industry poised for exponential growth

Sources: Research on India Report , 2010, Healthcare India Report, Fitch Ratings, 2010, FICCI E&Y Report, 2008

KEY HIGHLIGHTS

• Indian Health Industry is poised to double to USD 125 bn by 2015E, driven by a combination of ageing population, growing

lifestyle diseases and medical insurance penetration as well as increasing ability to afford quality healthcare.

• Realization of latent demand through growth in insurance & consumer education likely to be a key growth driver
• Private hospitals to contribute USD 45 Bn by 2012
• Share of top tier private hospitals (>100 beds) is expected to grow to 40% of the total hospital segment by 2015
• Specialty hospitals are estimated to grow faster than overall industry due to rise in lifestyle diseases
• India needs an investment of USD 86 Bn by 2025 to increase bed density to 2 per 1,000 population

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14 17 22 32 51 66 84 111 20 40 60 80 100 120 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Rs billion

Growing Health Insurance Market...

Increasing prevalence and propensity are key market drivers

Sources: FICCI & E&Y Report, 2007, IRDA, B&K report, 2009, Crisil, Research on India Report, 2010

Rising health insurance penetration will make healthcare affordable Cost differentials provide a huge untapped market for medical tourism related business opportunities

6.8 6.4 2.9 3.4 1.2 8.4 3.1 3.3 4.2 3.6

5 10 15 20 US Australia Mexico Brazil India

International Healthcare Expenditure (as a % of GDP) Public Private

8.5 7 4.5 9.8 32 24 6.4 19.2 100 48 18 65

Open Heart Knee replacement Lap Cholcystectomy Obesity Surgery

Comparative medical cost

India UK US (USD ’000s) 233 837 109 7285 2992 863 2000 4000 6000 8000 China Brazil India USA UK Global

Per Capita Spending (PPP)

China Brazil India USA UK Global

On a per capita basis , both in terms of USD and PPP, India’s Healthcare spend is amongst the lowest globally. However India's healthcare spending is growing at a healthy CAGR of 14%, rising from 5.5 % of GDP (2009) to 8% (2012)

Become Best Healthcare Provider in North India

Basis bed capacity & revenue Basis quality of services Basis key specialty focus of Onco, Neuro, Cardiac, Ortho, MAS and Renal Sciences Basis leveraging technology for driving

• perational excellence

& benchmark our processes with global standards Align financial performance in line with the best in Indian healthcare

MHC – Mission

Max Healthcare is focused on North India

Mohali, Punjab

(213 beds)

Bathinda, Punjab

(200 beds)

Dehradun, Uttrakhand

(200 beds)

Saket, New Delhi

(541 beds)

Gurgaon, Haryana

(64 beds)

Patparganj, New Delhi

(402 beds)

Noida, Uttar Pradesh

(33 beds)

Pritampura, New Delhi

(70 beds)

Shalimar Bagh, New Delhi

(280 beds)

Panchsheel, New Delhi

2000 beds across the network

Dehradun Gurgaon Mohali Bhatinda Delhi Noida

Trauma Oncology Cardio Neuroscience Oncology CardiacScience Mother & child General

Shalimar Bag Pitampura Saket

CardiacScience Oncology Ambulatory Surgical Centre

Patparganj

Trauma Neuroscience MAS Orthopedics Multi specialty care Oncology Neuroscience CardiacScience Urology Orthopedics

MHC network

23 Cardiac Sciences

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Extensive focus on service excellence – a key strength for MHC

• Engagement with independent external agency (IMRB) for

monitoring patient satisfaction

• Strong clinical protocols

Focus on service excellence & medical quality

• Investment in CRM; EHR; ERP
• Leveraging IT for driving cost & operational efficiencies
• IT Opex accounts for 1% of revenue

Strong IT system

• Strong presence in North India with brand recognition Pan India
• Won numerous accolades including accreditations by the NABH,

NABL and awards by FICCI Well established brand

• Increased bandwidth for future growth & governance standards
• Involvement of clinicians in strategic decision making through

doctor’s governing bodies such as GMAC; HMEC etc Professionally run & Clinician engagement

• 2,100+ doctors; 3,100 nurses & 3,000 other trained personnel
• DNB (Diplomate of National Board) & fellowship programs
• OTJ trainings for nursing & paramedic care

Focus on talent & training

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MHC’s Governing Philosophy...

Clinical excellence – employer of choice for physicians Service excellence Information technology and modern management techniques

GMAC1 Doctor Councils

Provide Strategic direction Drive hospital specific decisions Idea exchange forum

HMAC (one for each hospital)

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423 534 685 824 1149 1407 56.5% 57.2% 59.2% 59.6% 61.2% 61.7% 55.0% 57.0% 59.0% 61.0% 63.0% 65.0% 150 300 450 600 750 900 1050 1200 1350 1500 FY 09 FY10 FY11 FY12 FY13 FY 14

Revenue and Contribution Margin

Revenue (Rs cr) Contribution Margin

MHC delivering superior performance across all key metric

712 751 926 992 1302 1472 19433 20431 21558 23585 25126 26208 5000 10000 15000 20000 25000 30000 200 400 600 800 1000 1200 1400 1600 FY 09 FY10 FY11 FY12 FY13 FY 14

• Avg. operational beds and Avg. revenue per
• ccupied bed day*
• Avg. operational beds

Avg Revenue per bed day (Rs) 51103 59130 64335 69375 95114 112668 64390 68806 76838 84635 87522 92857 40000 60000 80000 100000 15000 30000 45000 60000 75000 90000 105000 120000 FY 09 FY10 FY11 FY12 FY13 FY 14

Inpatient Trends

Inpatient Transactions

• Avg. revenue per patient (Rs)

1900 2250 2906 3103 3636 3799 493 565 594 676 735 807 200 400 600 800 1000 500 1000 1500 2000 2500 3000 3500 4000 FY 09 FY10 FY11 FY12 FY13 FY 14

Outpatient Trends

Outpatient transactions (000's)

• Avg. revenue per patient (Rs)

*Average revenue per occupied bed day has been calculated on inpatient revenue

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MHC – Accreditations and Awards

Achievements: 2012-13: MSSH: Shalimar Bagh: NABH New Accreditation MSSH, Mohali: NABH New Accreditation (awaited shortly) MSSH, Saket: NABH Reaccreditation MSSH, Patparganj: NABH Surveillance Accreditation Blood Bank: MSSH, Patparganj: NABH Reaccreditation Pathology Lab: MSSH, Patparganj: NABL Reaccreditation Pathology Lab, MSSH, Gurgaon: NABL Reaccreditation National Standards: Mark of Excellence : 636 aspects are addressed:

• Patient Rights: respect,

transparency, consent

• Standardized protocols in all

departments: over 200 SOPs

• Patient safety
• Measurement & Evaluation
• Staff Training and safety: on all

SOPs

NABH / NABL Accreditation MHC is committed to ensure that all units are complaint to the National Standards

Centre of Excellence Recognition to MHC for Treatment of Heart Attacks By Lumen Global 2013 Under leadership of Dr. Roopa Salwan Radiation Therapy Radiation Oncology Department, Saket: Recognition of Quality Standards conforming to International Atomic Energy Agency / World Health Organization Under leadership of Dr Anil K Anand & Mr. Munjal

• Dr. Arati Verma selected as Co Chairperson of Technical Committee of NABH

ISO 14001:2004 & 18001:2007 at Patparganj , Pitampura & Shalimar Bagh ISO 9001:2008 at Max Heart & Vascular Institute, Patparganj, Noida, Pitampura, Shalimar Bagh, Panchsheel Park & Home Office. Awarded on 17th Jan, 2013 Past winners: www.mahindra.com and www.volkswagon.co.in MHC won among 200 Nominations in the Award Category IAMAI jury evaluated entries based on :

• Content
• Structure and Navigation
• Visual Design
• Functionality
• Interactivity
• Overall Experience

Best Corporate Website – maxhealthcare.in 3rd India Digital Awards by Internet & Mobile Association of India

Management bandwidth for M & A available Value adding deals will be pursued in consonance with Shatabadi Strategy Phased approach towards growth to ensure absolute Operating Profit is not depressed in absolute terms. Asset light strategy to growth will be preferred; attractive PPP arrangements will also be explored. Addition to bed capacity in existing hospitals in NCR will be prioritised in light of new FAR rules in New Delhi

Our Growth Philosophy

MHC expansion by 2020…



2,000 beds  3500-4000 beds



12 hospitals  20 hospitals



Scope for expansion in existing units – Saket, Patparganj; & Shalimar Bagh



Brown & Green field opportunities can be looked at for smaller units in NCR

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MAX BUPA HEALTH INSURANCE (Max Bupa)

www.maxbupa.in

A symbiotic partnership in the health insurance space

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• India’s leading conglomerate
• Successful track record of

building businesses

• Expertise in life insurance,

health insurance and healthcare businesses

• Group revenues in FY 2014 –

Rs 11,683 crores

• Local perspective of the Indian

market

• Culture of service excellence
• Global Health Insurance provider

with market leadership in UK, Spain & Australia

• 12 million customers in over 190

countries

• Group revenues in 2012 - £8.5

billion and PBT of £600 million

• Employee base of over 52,000
• Voted as best international health

care provider in 2013 Leveraging the strengths of both partners to build a robust and profitable enterprise with focus on service excellence

Industry is poised for an exponential growth

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Key drivers of growth

SOURCE: Team analysis, WHO statistics, NCAER, McKinsey Urbanisation report, Government economic survey, BRIC report

▪ Increase in affordability

–

Increasing affordability with rise in income levels and healthcare spend per capita

▪ Increase in willingness

–

Rapid scale-up of hospitals and expansion outside metros

–

Take-off of comprehensive insurance coverage products e.g. secondary healthcare, out-patient etc.

–

Higher need with rise in incidences

• f chronic diseases (viz. cancer,

heart disease)

–

Acceptability of insurance with increasing awareness

▪ Increase in ticket size

–

Rise in healthcare costs with market inflation

17 22 32 51 66 83 111 131 160 192 231 266 305 351 404 464 50 100 150 200 250 300 350 400 450 500 GWP (Rs. in Billion)

Indian Health Insurance Market (Rs. In Billion)

• Industry grew by 15% in FY 2013-14 marginally lower than

that in the previous fiscal (17% in FY 12-13)

• Growth driven equally by both Private as well as public

sector players (YTD Mar’14 : 14% and 15% respectively)

• Insurers focusing on containing loss ratio’s and improving

profitability

• Standalone health insurers growing aggressively

Health and wellness focus Value for money: Comprehensive benefits for the money paid Good Hospitalization experience:

Cashless processing; No TPA

Health Coach Simplicity, Transparency:

Hassle free claim processing; No underwriting at point

• f claim

Comprehensive benefits Access to information Checkups on renewal

Support for Family’s health 24/7 health line

Relationship Manager for Gold & Platinum Customers

Max Bupa to capitalise on this opportunity through innovative product and superior service offering

Technology & automation ahead of curve

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• Max India - strong understanding of Indian Insurance landscape,

learning's from Max Life’s success and leverage synergies with Max Life and MHC

• BUPA – Product design, underwriting and clinical expertise

Leveraging Max India and BUPA capabilities

• Opened up to Standalone Health insurers in February 2013
• 4 tie-ups - Standard Chartered, Deutsche, Federal Bank and

Ratnakar Bank successfully launched

Bancassurance would catapult growth

• Value based pricing based on data and analysis
• Selective targeting of profitable Group business

Pricing for profitability

• Build a culture of innovation and expertise.
• Focus on wellness and specialized products with no age limit and

high sum assured.

• Emphasis on Health Risk Management

Continuous product innovation

• Focus on the mass affluent+ customer base
• Robust underwriting procedure

Focused customer profile

Extensive focus on key growth levers to maximize long-term value

Factsheet* – Max Bupa

Gross Written Premium^ INR 249 Cr. Customer Base^ ~800K Number of Employees ~1,500 Number of Agents ~10,000 Number of Offices 26 Partner Hospitals ~3,500

* For the year ended December 31, 2015

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MAX SPECIALITY FILMS (MSF)

www.maxspecialityfilms.com

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1.9 1.6 1.2

0.5 1.6

0.16 0.8 Western Europe China North America Asia Latin America India World Average

Global per capita consumption of BOPP

BOPP per capita consumption in India lower than the global average (KG’s)

Industry marked by robust global and domestic demand

Key Highlights

• Growth of flexible packaging Industry ~ 12-14% in India
• Per capita consumption of BOPP in India relatively lower
• Growth in FMCG and organized retail and changing urban life styles & rural demand.
• Competitive pricing and costs spurs exports from India and restricts imports.
• Shift from PET to BOPP (Indian BOPP:PET products ratio around 1:2 against 3:1 globally)
• BOPP films are recyclable and have a competitive advantage over other plastic and traditional products
• Convertor industry growing & India becoming global hub for supplies of Flexible Laminates

Confectionary, 5% Biscuits, 14% Snacks, 20% Pasta, 15% Other Foods, 10% Tobacco, 2% Tape, 16% Labels, 8% Other App, 10%

Global Demand FY 15

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Max Speciality Films is much more than packaging…



Established in 1990 MSF manufactures ‘Speciality’ BOPP (Bi- axially Oriented Polypropylene) & Thermal Lamination Films



Committed to innovation, product quality and service excellence



Deep Partnerships with Brands and converters in India & Abroad



Significant market share of converts 60-70% output served to FMCG industry



Geographical footprint covers Europe, the middle East, the US, Latin America, Africa, Australia, South Korea, CIS countries & SAARC

MSF uniquely positioned to be India’s most admired & preferred global supplier of Specialty Polymer films

COMMODITY PACKAGING, INDUSTRIAL, TEXTILES SPECIALITY HERMETIC SEAL, ULTRA HIGH BARRIER HIGH SPEED PACKAGING, LAMINATION METALLISED FILM PACKAGING, LAMINATION, HIGH BARRIER THERMAL & COATED FILM PACKAGING, DOCUMENT PROTECTION ENHANCEMENT, PRESERVATION VIZ. GREETING CARDS

OUR STRENGTH

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Business evolution & infrastructure

MSF Growth - FY07-14

Revenue CAGR: 24 % Quantity CAGR: 22 % EBITDA CAGR: 15 %

REVENUE & QUANTITY GROWTH

1990 1996 1998 2001 2003 2006 2007 2009 2011 2015 BOPP LINE 1 (3.6 KTA) METALIZER 1 LEATHER FINISHING FOIL THERMAL LINE 1, BOPP LINE 2 METALIZER 2 THERMAL LINE 2 BOPP LINE 3 THERMAL LINE 3, LEATHER FINISHING FOIL 4 LINE 4, METALIZER 4 EXPANSION LINE 5 METALIZER 5 (54 KTA) METALIZER 3 3 EXTRUSION LINES 4 METALLISERS 4 BOPP LINES 3 COATING LINES

CAPACITY GROWTH

Visibility in Top Brands

You will Find MSF films in…

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Markets we serve…

Food Packaging Non Food Packaging Industrial Packaging Leather Industry

Awards & Recognition

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GOLDEN PEACOCK YEAR -2011 YEAR -2010 YEAR -2012 WORLD STAR YEAR 2010 YEAR 2012 INDIA STAR

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MAX INDIA FOUNDATION (MIF)

www.maxindiafoundation.org

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MAX INDIA FOUNDATION

Making a difference… to life Factsheet* – MIF

Locations 500 NGO Partners 367 Beneficiaries 12,33,233 Initiatives

• Immunization
• Artificial Limbs & Polio

Callipers

• Health Camps
• Surgeries & Treatment
• Palliative Care
• Lifeline Express Camps
• Multi-speciality Camps
• Cancer Awareness
• Environment Awareness

Max India Foundation

• Corporate Social Responsibility (CSR) Arm of the Max

India Group focused on providing quality healthcare to the underprivileged, facilitating awareness of health related issues, and promoting and fostering an eco- friendly healthy environment. Awards Received:-

• Golden Peacock Global CSR Award 2011
• Global CSR Awards at the World CSR Day 2012
• Golden Peacock Award for CSR 2012
• “Best CSR Practices 2013” at 7th Indy’s Award
• “Best CSR Practices 2013”at the World CSR Day
• “Golden Peacock Award for CSR 2013
• “Outstanding Social Impacts” Award 2014 at the

World CSR Day Congress

• Best Overall CSR Practices 2015”at the World CSR

Day

* Till Feb 2015

Under the ‘Village Adoption Scheme’ being promoted by Government, MIF adopts Dhakrani, a village in Dehradun district to address healthcare related needs including waste disposal and sanitation.

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Annexures

Consolidated Financial Snapshot^ (Q3 & 9MFY15)

Particulars 31-Dec-14 31- Mar-14 Growth

Net Worth 3,267 2,984 9% Preference Shares

• 65
• Loan Funds

571 702

• 19%

Fixed Assets (Net Block) 1,111 1,495

• 26%

Treasury Corpus (Debt M. Funds & Term Deposits) 728 247 195% Life Insurance Investments (AUM) 29,262 24,716 18%

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(Rs. Cr.)

Particulars Quarter ended Y-o-Y Growth Nine month ended Y-o-Y Growth Dec-14 Dec-13 Dec-14 Dec-13

Total Revenue 3,779 3,376 12% 10,756 7,943 35% Operating Revenue 2,477 2,328 6% 6,936 6,208 12% EBITDA 293 135 117% 618 385 61% PBT 235 77 206% 429 212 102%

• Max Healthcare results consolidated on proportionate basis as it becomes a JV as opposed to a subsidiary earlier impacting revenue and PBT growth
• Gain from stake sale in Max Healthcare to Life Healthcare of Rs. 296 Cr. included in revenue and Rs 265 Cr. included in EBITDA/ PBT
• Expenses of Rs. Rs 77 Cr. being carried forward to be charged over future projects of Antara recognized in the Q3 P&L as current focus is on ensuring

the success of first project

To be the most admired life insurance company by securing the financial future of our customers FY 2020-21:

• Touch 1 Crore lives and grow by 3 times in 8 years
• Defined targets for Revenue, Profit and AEV

Caring | Credibility | Collaborative | Excellence

• We are an honest life insurance company, committed to doing

what is right

• We serve our customers through Long term savings,

protection and retirement solutions, delivered by our high quality Agency & Multi channel Distribution Partners

• We are a business with strong social relevance and contribute

to Society by supporting causes in health and wellbeing. Financial Strength Quality of Advice Service Excellence Superior Human Capital Value Driven Culture Corporate Governance

Vision Goals We Stand for Values Integrity Mission

Vision & Mission Statement

45

Rank Company Individual New Business Premium (Rs. Cr) Premium Adjusted for 10% single premium

Apr’14-Dec’14 Apr’13-Dec’13 Growth (%) Private Market Share

1

ICICI Prudential 3,011 2,190 37.5% 23.9%

2

SBI Life 1,887 1,882 0.3% 15.0%

3

HDFC Life 1,870 1,455 28.6% 14.9%

4

Max Life 1281 1162 10.2% 10.2%

5

Reliance Life 820 800 2.5% 6.5%

6

Bajaj Allianz 477 718

• 33.6%

3.8%

7

Birla Sunlife 474 561

• 15.5%

3.8%

8

PNB MetLife 439 393 11.8% 3.5%

9

Kotak Life 311 270 15.6% 2.5%

10

Exide Life 287 322

• 10.9%

2.3% Others 1,714 1593 7.6% 13.6% Private Total 12,571 11,345 10.8% LIC 13,791 21,438

• 35.7%

Grand Total 26,362 32,783

• 19.6%

Market Share of Pvt. Players 47.7% 34.6%

Market Position Insurance Sales

Source: Life Insurance Council | IRDA Website

46

Amount in Rs. Cr.

Value of New Business Opening EV Unwind of Discount** Operating Variance* Non Recurring Variance Closing EV

Denotes decrease to EV Denotes increase to EV

379* 240 79 34 3,756

* Includes Rs 6 crs of cost underrun.. ** Unwind calculated on the expected basis where the Net Worth earns 8.15% and the VIF earns 13%. *** VNB includes shareholders’ interest in the residual estate from participating business aggregating Rs. 40 Cr. Implied NBM is on a structural basis. ****APE: Adjusted Premium Equivalent (Annualized First Year Premium adjusted for 10% of Single Premium; Limited Premium valued at 100%).

Net Worth Value of In-force business

3,953

Operating RoEV of 15.6% Headline RoEV of 13.5%

1,858 1,898 1,931 2,021

Max Life – Embedded Value

March 31, 2014

SH dividend payouts

309

Implied NBM*** is 13.4% on APE**** (14% in 2012-13)

47

Max Life – Key Assumptions to Embedded Value

Cash/Money Market/TB 8.5% G Secs 8.8% Corporate Bonds 9.6% Equities 13.00% Unit Linked Fund Growth Rate 10.50% Interest Rate on Non-Unit Reserves 8.15% Inflation 6.50% Risk Discount Rate 13.00% Service Tax 12.36% Tax Rate 14.1625% (12.5% + 10% surcharge + 3% education cess)

Economic Assumptions Operating Assumptions

Operating assumptions like mortality, morbidity and lapses are set on a best estimate basis, based on Company’s own experience where available. Maintenance expense assumptions are in line with the current experience and acquisition expense assumptions are based on structural level expenses The economic assumptions used are internally consistent and have been set with regard to current economic conditions

48

Max Life – Sensitivities to Embedded Value

* For the purpose of par sensitivity analysis, the impact on enhanced dividends has not been allowed for.

Base Case (% change*) Value of In force Value of New Business Mortality +10%

• 2.20%
• 5.20%

Mortality -10% 2.20% 5.20% Lapses +10%

• 3.90%
• 6.50%

Lapses -10% 4.20% 7.20% Maintenance Expenses +10%

• 1.10%
• 1.80%

Maintenance Expenses -10% 1.10% 1.80% RDR +100bps

• 4.20%
• 7.20%

RDR – 100bps 4.70% 8.00% Investment Return +100bps and RDR +100 bps

• 2.00%
• 0.10%

Investment Return -100bps and RDR -100 bps 2.20% 0.00%

49

Max Life Embedded Value – Basis of Preparation

Max Life’s Embedded Value is guided by the European Embedded Value (EEV) principles and is consistent with the reporting of traditional embedded values on a deterministic basis Allowance for risk has been made through the use of a single risk discount rate (“Top down discount rate approach”), including allowance for the time value of financial options and guarantees Explicit allowance is made for the cost of capital where the capital is defined as the higher of the internal required solvency margin (being 170% of the Minimum Required Solvency Capital) and the internal economic capital requirement Operating experience assumptions are set on a best estimate basis, reflecting the Company’s recent experience as well as the expected future experience adjusted for Management actions and non recurring factors contributing to current experience in order to avoid arbitrary changes in assumptions Operating experience assumptions are monitored on a six-monthly basis at a granular level, including channel and product, and are reviewed by the Product, Actuarial and Risk Management Committee of the Board The EV assessment does not include any value generated by future new business but various assumptions used to make the assessments are based on the ability of the company to continue writing new business It is to be noted that the EV methodology is in line with accepted international practices, however the results have not been subject to an external review. The results have been reviewed internally by members of the Product, Actuarial and Risk Management Committee of the Board, including actuaries who have expertise in this area.

*Individual First Year Premium adjusted for 10% single pay **Conservation Ratio = Renewal Premium for the current period / (First Year + Renewal Premium for the previous period) *** Due to buyback of 1% stake from Axis Bank as per the agreed arrangement and proportionate stake from MSI to maintain foreign holding at 26%

Max Life Insurance

50

Key Business Drivers Unit Quarter Ended Y-o-Y Growth 9 months ended Y-o-Y Growth Dec'14 Dec'13 Dec'14 Dec'13

a) Gross written premium income

• Rs. Cr

First year premium 480 446 8% 1,267 1,165 9% Renewal premium 1,399 1,265 11% 3,754 3,366 12% Single premium 174 129 34% 426 315 35% Total 2,052 1,841 11% 5,447 4,846 12% b) Shareholder Profit (Pre Tax)

• Rs. Cr

73 134

• 45% 356 382
• 7%

c) Expense Ratio % 25.2% 26.3%

• 26.7%

28.4%

• d) Individual Adjusted Premium (APE*)
• Rs. Cr

489 453 8% 1,281 1,162 10% e) Conservation ratio** 81.7% 80.9% 82.9% 78.3% f) Average case size (Agency) Rs. 37,930 30,122 26% 33,067 28,699 15% g) Case rate per agent per month No. 0.29 0.43

• 32%

0.30 0.41

• 27%

h) Number of agents (Agency) No. 47,128 43,120 9% 47,128 43,120 9% i) Paid up Capital***

• Rs. Cr

2,013 2,127

• 5%

2,013 2,127

• 5%

j) Individual Policies in force

• No. Lacs

36.3 35.8 1% 36.3 35.8 1% k) Sum insured in force (Including Group)

• Rs. Cr

211,401 191,379 10% 211,401 191,379 10%

Padma Shri Dr. Rustom Phiroze Soonawala MD, FRCS, FRCOG Chairman, Obstetrics & Gynaecology

• Eminent and Internationally renowned Obstetrician & Gynaecologist.
• Former President of the Federation of Obstetricians and Gynaecologists

Padma Shri Dr. Pradeep K Chowbey MBBS, MS, FIMSA, FAIS, FICS, FACS, Doctor of Science (Honoris Causa) Chief- Surgery & Allied Surgical Specialties Director - Minimal Access, Metabolic & Bariatric Surgery Prior to joining MHC, he was Chairman of the Minimal Access Metabolic & Bariatric surgery center, Sir Ganga Ram Hospital. He has been visiting faculty to the best Medical Institutions like Memorial Sloan Kettering Cancer Hospital, NewYork, John Hopkins Institute in USA & Royal Marsden Cancer Hospital, in U.K. Dr. Chowbey has done his MBBS followed by MS, General Surgery(1977) from Govt. Medical College, Jabalpur & MNAMS, National board of Examination.

• Dr. S.K.S. Marya (M.S., DNB, Mch, FICS)

Chairman - Orthopaedics & Joint Replacement

• Renowned Joint Replacement Surgeon having 30 years experience.
• Pioneered bilateral Hip and Knee Joint replacement.
• Author and teacher par excellence.
• Dr. A.K.Singh (M.S., Mch, Diploma WFNS)

Director – Max Institute of Neurosciences, Dehradun

• Renowned Neuro Surgeon having 40 years experience.
• Pioneer in the field of neurosurgery, credited with many ‘firsts’ in India - Median Corpectomy

for Cervical Spondylosis; Direct Trans Nasal Trans Sphenoidal removal of Pituitary Tumors and many others. Also won BC Roy Award amongst others

• Author and teacher par excellence.
• Dr. Harit Chaturvedi (MS, MCH)

Chief Consultant & Director – Surgical Oncology

• Having 25 years of experience in Surgical Oncology.
• Served institutions of repute like Rajiv Gandhi Cancer Institute, Indraprastha Apollo Hospitals,

Batra Hospital & Medical Research Centre, New Delhi.

• Dr. Anurag Krishna

MS, MCh., FAMS Director, Paediatrics and Paediatric Surgery

• 20 years experience in Paediatric surgery -complex congenital malformations
• Published 50 scientific papers in leading national and international journals
• Served as Member of the Board of Management of Sir Ganga Ram Hospital.

51

MHC – Key Physicians

Max Healthcare*

52

*The above results are for MHC Network of hospitals and includes results for Max Super Specialty Hospital, Saket, unit of Devki Devi Foundation and Max Super Speciality Hospital, Patparganj, unit of Balaji Medical and Diagnostic Research Centre

Key Business Drivers Unit

Quarter Ended Y-o-Y Growth 9 months ended Y-o-Y Growth Dec-14 Dec-13 Dec-14 Dec-13

a) Revenue (Gross)

• Rs. Cr

Inpatient Revenue 329 272 21% 964 768 26% Day Care Revenue 16 13 19% 45 36 25% Outpatient Revenue 94 75 26% 281 223 26% Other Operating Income (2)

• (2)

3

• Total

437 360 22% 1288 1030 25% b) Profitability Contribution (%) % 63.2% 62.0%

• 62.4%

61.7%

• EBITDA
• Rs. Cr

42 32 34% 128 80 60% EBITDA (%) % 9.7% 8.8%

• 9.9%

7.7%

• Cash Profit
• Rs. Cr

22 9 141% 62 12 429% c) Patient Transactions (No. of Procedures) No. Inpatient Procedures 32,649 29,628 10% 98,643 83,882 18% Day care Procedures 6.805 4,745 43% 19,850 13,325 49% Outpatient Registrations 1,072,689 934,258 15% 3,304,297 2,805,031 18% d) Average Inpatient Operational Beds No. 1,717 1,511 14% 1,659 1,449 15% e) Average Inpatient Occupancy % 69.4% 75.3%

• 74.1%

74.3%

• f) Average Length of Stay

No. 3.36 3.53 5% 3.43 3.53 3% g) Avg. Revenue/Occupied Bed Day (IP) Rs. 29,996 25,952 16% 28,512 25,933 10%

Max Bupa Health Insurance

53

Key Business Drivers Unit Quarter Ended Y-o-Y Growth 9 months ended Y-o-Y Growth Dec-14 Dec-13 Dec-14 Dec-13

a) Gross written premium income

• Rs. Cr

First year premium* 34 41 (18%) 97 112 (14%) Renewal premium 56 35 61% 152 94 62% Total 90 76 18% 249 206 21% b) Net Earned Premium

• Rs. Cr

82 64 28% 235 169 39% c) Net Profit / Loss Before Tax

• Rs. Cr

(19) (21) 10% (67) (83) 19% d) Claim Ratio (B2C Segment) % 51% 38%

• 52%

50%

• e) Av. premium realization per life (B2C)

Rs. 6,478 5,312 22% 6,278 5,310 18% f) Conservation ratio (B2C Segment) % 93% 84% 90% 84% g) Number of agents No. 9,756 10,534 (7%) 9,756 10,534 (7%) h) Paid up Capital

• Rs. Cr

763 601 27% 763 601 27%

* B2C First year premium growth at 23% for Q3FY15

54

Max Specialty Films

Key Business Drivers Unit Quarter Ended Y-o-Y Growth Nine months ended Y-o-Y Growth Dec-14 Dec-13 Dec-14 Dec-13 a) Sales Quantity – BOPP Tons 10,399 12,152

• 14%

32,885 35,113

• 6%

b) Revenue

• Rs. Cr.

175 197

• 11%

565 550 3% c) Profitability: Contribution

• Rs. Cr.

30 25 22% 100 83 20% Contribution Margin % 17% 13% 18% 15% EBITDA

• Rs. Cr.

17 15 10% 54 43 26% EBITDA Margin % 9% 8% 10% 8% PBT

• Rs. Cr.

0.4 2

• 80%

6 7

• 14%

Margin % 0.2% 1% 1% 1%

• 14% drop in Sales Quantity is predominantly because of shift to high margin yielding thin films
• Higher realisations per unit coupled with cost rationalisation, lead to 10% higher EBITDA vis-à-vis Q3FY14
• Decline in PBT is on account of higher interest cost on fresh borrowings consequent to transfer of MSF to a subsidiary resulting

in liquidity of Rs. 110 cr. for Max India

• Continues to aggressively tap growth opportunities with key FMCG brands

Disclaimer

55

This presentation has been prepared by Max India Limited (the “Company”). No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in the presentation. The past performance is not indicative of future results. Neither the Company nor any of its affiliates, advisers or representatives accepts liability whatsoever for any loss howsoever arising from any information presented or contained in the presentation. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. The presentation may also contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from our expectations and assumptions. We do not undertake any responsibility to update any forward looking statements nor should this be constituted as a guidance of future performance. This presentation does not constitute a prospectus or offering memorandum or an offer to acquire any securities and is not intended to provide the basis for evaluation of the securities. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the securities shall be deemed to constitute an offer of or an invitation. No person is authorised to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of the Company any of its affiliates, advisers or representatives. The Company’s Securities have not been and are not intended to be registered under the United States Securities Act of 1993, as amended (the “Securities Act”), or any State Securities Law and unless so registered may not be offered or sold within the United States or to, or for the benefit of, U.S. Persons (as defined in Regulations S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the applicable State Securities Laws. This presentation is highly confidential, and is solely for your information and may not be copied, reproduced or distributed to any other person in any manner. Unauthorized copying, reproduction, or distribution of any of the presentation into the U.S. or to any “U.S. persons” (as defined in Regulation S under the Securities Act) or other third parties ( including journalists) could prejudice, any potential future offering of shares by the Company. You agree to keep the contents of this presentation and these materials confidential.

56

MAX INDIA LTD.

Max House, Okhla, New Delhi – 110 020 Phone: +91 11 26933601-10 Fax: +91 11 26933619 Website: www.maxindia.com