Max India Limited Investor Presentation November 2017 - - PowerPoint PPT Presentation

Max India Limited

Investor Presentation

November 2017

www.maxindia.com

Max Group Vision “To be the most admired corporate for service excellence”

Sevabhav Excellence Credibility

• Positive social impact
• Helpfulness
• Culture of Service
• Mindfulness
• Expertise
• Dependability
• Entrepreneurship
• Business performance
• Transparency
• Integrity
• Respect
• Governance

1

2

Evolution of Max Group—Strong history of entrepreneurship and nurturing successful businesses

Health Insurance, JV with Bupa Plc

1985 1993 2000

Forays into Penicillin bulk pharma Enters Telecom in JV with Hutchison JV with Gist Brocades (Asia’s largest Drug manufacturer ) Shift from B2B to B2C businesses:

• Life insurance
• Healthcare
• Clinical research

Hutchison

Fund raising ~ USD 360 Mn

• QIP- USD 156 Mn in 2007
• Warburg Pincus - 53 Mn in 2005
• IFC- 47 Mn(2007) &23 Mn (2009)
• Goldman Sachs 82 Mn in 2011

2005 2011 2007 2009 2012 2013 2014 2015 2016

NYL exits and JV with MSI in 2012

• MSI is world’s 7th largest

general insurance group

• MSI acquired 26% stake for

USD 425 Mn

• Max Life valued at USD 1.6

bn

LHC inducted as JV Partner in MHC

• LHC is 2nd largest hospital

chain in South Africa

• 2012 - Acquired 26% stake

for USD 81 Mn in MHC

• 2014 - Equalize stake in

MHC invests USD 120 Mn

Enter Senior Living business, launch first community in Dehradun with 200 units Max India demerged into 3 listed hold cos Landmark Acquisitions by MHC

• Acquired 79% stake for

USD 40 Mn in 340 bedded Pushpanjali hospital expandable upto 540 beds

• Acquired 51% stake for

USD 100 Mn in 230 bedded Saket City hospital, expandable upto 1200 beds Note: Conversion rate assumed 1 USD = INR 64

Health & Allied Business Life Insurance Business*

Max Group – Corporate Structure

3

Max Group - Sponsors

Manufacturing & Other businesses Holding Companies Operating Companies

70% 50% 51% 100% 51%

Group CSR Arm

30.3% 41.1% 38.1%

Sponsors stake in Max Group holding companies

100% 100% 100%

Max Group Overview

USD 2.6 billion+… 9 Mn Customers… 23,000 Employees… ~68,000 Agents… 2,850 Doctors… Strong growth trajectory even in challenging times; a resilient & diversified business model Steady revenue growth and cost rationalization leads to strong financial performance Well established board governance….internationally acclaimed domain experts inducted Diversified ownership…..marquee investor base Superior brand recall with a proven track record of service excellence Strong history of entrepreneurship and nurturing successful business partnerships

1 2 3 4 5 6 7

4

Max Group : Continues to grow from strength to strength

5

Group EBITDA (USD Mn)

69 82 97 112 160 FY'13 FY'14 FY'15 FY'16 FY'17

Group Revenue (USD Mn)

1,465 1,664 1,944 2,225 2,625 FY'13 FY'14 FY'15 FY'16 FY'17

Max India: High pedigree investor base

Number of outstanding shares* : 26.84 Cr.

Promoters 41.0% IFC 3.1% FII/ FPI 19.3% Mutual Funds 22.9% Others 13.7% 0.0% 0.0% 0.0% 0.0% Shareholding Pattern as on Sep 30, 2017

6

▪ Ward Ferry ▪ International Finance Corporation ▪ Government of Singapore ▪ Target Asset management ▪ New York Life Insurance ▪ Comgest ▪ Nomura Singapore ▪ Goldman Sachs ▪ Reliance Mutual Fund ▪ HDFC Standard Life Insurance ▪ DSP Black Rock Mutual Fund ▪ L&T Mutual Fund ▪ UTI Mutual Fund ▪ Mirae Mutual Fund Shareholding concentrated with Marquee Investors

* Max Group Sponsors hold warrants convertible into 4% equity stake, post conversion Sponsor’s stake will increase form 41% to 45%, on fully-diluted equity base will increase to 28.7 Cr shares post conversion

www.maxhealthcare.in www.maxindia.com

MAX INDIA LIMITED

MAX HEALTHCARE

7

Indian healthcare industry is expected to reach ~$400 billion fuelled by multiple demand drivers

Sources: India Brand Equity Foundation – Healthcare report, 2012; BofA Merrill Lynch Global Research, IBEF Mar'15

60 79 102 280 2010 2012 2015 2020 2025 Indian healthcare sector* Estimated size, Bn USD Demand drivers for growth

* Healthcare sector includes hospitals, pharmaceuticals, and medical technology sub-sectors

~500 mn

additional middle class by 2025

~45%

Insurance penetration by 2020

~134 mn

population > 60 years by 2020

~$8 bn

medical tourism market size by 2020

~320 mn

at risk of dying due to NCDs by 2020

~2 mn

beds required by 2025

CAGR

11.2%

CAGR

14.6% ^ 350 - 450

^ Depending upon public spending levels, insurance proliferation, and success of public-private partnerships by 2025

8

Hospitals constitute ~70% of Indian healthcare market with increasingly dominant role of private sector

Sources: BofA Merrill Lynch Global Research, IBEF Mar'15

Private players have established a dominating presence in tertiary / quaternary care 70% 63% 60% 78% 80% 30% 37% 40% 22% 20% Market Share Beds Inpatients Outpatients Doctors Private sector Public sector

70% 20% 10% Hospitals Pharmaceuticals Medical technology / Others Indian healthcare sector* Market share %

Market size of private hospitals is expected to reach ~$ 120 bn by 2020 22 36 50 120

2009 2012 2015 2020

Private sector hospitals Estimated size, Bn USD

CAGR ~14.7% CAGR ~19.2% * Includes hospitals, pharmaceuticals & medical technology / other companies 9

Competition is intensifying with scale-up of well funded incumbents & availability of capital for new players

The surge of VC/ PE investments in recent years has eased funding constraints on growth

Annual VC/ PE investment’s in India’s Healthcare ($ Million) 580 485 1262 1359 835 2011 2010 2013 2012 2014 (H1)

• No. of deals

35 29 45 71 43

Scale up of well funded incumbents

8,600 550, (2013 - KKR) 4,800 820, (2013 - Stan Chart, IFC) 1,300 700, (2015 - Temasek/Punj Lloyd)

CURRENT SCALE FUNDING (RS. CR.)

6,500 290, (2014 - CDC) 4,900 900, (2015 - TPG Capital) 2,500 (2012) 560, (2012 - Advent)

CURRENT SCALE FUNDING (RS. CR.)

2x

Note: Fortis and NH operational beds not split between owned and managed; Manipal’s # of managed beds assumed to be same for 2010 and 2013; assumed exchange rate of 1$=INR60 Source: Crisil research, company websites and presentations, secondary sources Slide sourced from Bain and Company 10

MHC vision

KEY ENABLERS WHERE DO WE WANT TO BE WHAT WILL WE BE KNOWN FOR

• Strong talent pool of

clinicians, nurses and healthcare leaders

• Technology and

analytics enabled clinical outcomes and customer experience

• Integrated care
• Clinical excellence
• Transparency
• Speed
• Tech enabled

continued care

• #1 in selected specialties in

chosen geographies

• Focus on Tertiary and

Quaternary care

• Physical infrastructure in

North India; however serving more than 300 towns in India and 30+ countries

To become an admirable institution known for service excellence, medical excellence, scientific research, and medical education

11

MHC has a strong focus on North India

419 522

Saket Noida Gurgaon Vaishali Shalimar Bagh Max Smart

41 72

OUTSIDE NCR NCR

Patparganj

222

Mohali Bathinda Dehradun

186 172 293 224 290

~2500 available beds across the network

12

Pitampura* Panchsheel* Lajpat Nagar*

* Standalone Speciality Clinics with Outpatient and Day care facility

Greater Noida

1 12

MHC has invested in state of the art equipment to achieve clinical excellence (1/2)

Advanced robotics provides high precision, and minimum invasive surgery across multiple specialities such as Oncology, Neurology High dose radiation with extreme precision (~ 0.5 mm accuracy) Advanced image guided surgery - provides real-time views and automated image processing Provides precise correlation and facilitates proper treatment for Oncology, surgical planning and radiation therapy

Robotics Brain suite Novalis LINAC PET-CT

13

MHC has invested in state of the art equipment to achieve clinical excellence (2/2)

Robotic radio-surgery (non-invasive) system for both cancerous & non-cancerous systems Designed for revolutionary single incision laproscopic surgery through catheter-based, flexible instruments Economical digital storage and convenient access to medical images from multiple modalities

CyberKnife* Picture Archiving & Communication System - PACS SPIDER

* planned

14

MHC has a robust service excellence & quality framework which has resulted into enhanced customer experience

• “Sevabhav” trainings and Reward &

Recognition platform has led to positive shift in mindset

• Structural Interventions through Six

Sigma and other methodologies has resulted into business impact of over 15 Mn USD 57% 69% 73% FY`15 FY`16 FY`17

13%

Top 2 Box Rating*

* MHC is the only healthcare company who has deployed a third party (IMRB) to conduct Satisfaction survey

15

MHC strong Governance Model helps us bring alignment and improve accountability

Executive Committee Unit Heads Unit Management Committee (MANCO) Group Medical Advisory Council (GMAC) Hospital Medical Executive Council (HMEC) Doctor’s council Managerial Clinical Administration Nomination & remuneration Audit Investment & performance review Medical excellence & compliance Service excellence Scientific projects & technology Corporate social responsibility Board & 7 committees

Governance

16

MHC has a proven record of building an institution

NABL/ NABH accredited ISO 9001:2000 & ISO 14001: 2004 certified DL Shah National Award on ‘Economics

• f Quality’

FICCI Excellence Awards - Operational Excellence Leadership positions in NatHealth and CII - healthcare

First MHC hospital started in 2002 MHC is one of the top 3 healthcare chains in India

Strengthened capabilities to provide comprehensive tertiary & quaternary care Network of highly qualified doctors, nurses and medical personnel Organic growth through expansion of hospital network JV with Life Healthcare, South Africa, extending expertise and global reach Business World Healthcare Award in Patient Experience & Safety

17

Max Saket received JCI accreditation – highest standards of clinical governance and compliance

MHC won 31 awards across multiple impact categories from various prestigious institutions in FY17 and FY18

Clinical Safety (7) Operational Excellence (9) Service Quality (9) Others (6)

• Best customer service in

Healthcare

• 3 projects qualified for

‘American Society for Quality’

• BPM Asia Star 2017 by

CII Institute of Quality

• Best use of six sigma in

Healthcare

• Best green hospital

(reducing carbon foot print

• f tertiary care hospital)
• Best patient safety

initiative (prevention of patient fall)

• Best quality initiative

(BCMA medication process improvement )

• Times Healthcare

Achievers Award

• ET Best Healthcare

brand

• Excellence in training

and development

18

Healthy revenue growth driven by hospital complexes

19

MHC Annual Gross Revenues by hospital complexes

• Rs. Cr.

321 505 693 843 941 513 260 309 381 560 672 363 568 593 666 779 954 538 FY14 +22% H1 FY18 2567 1407 FY16 2181 FY15 FY17 1739 1414 FY13 1149 East Delhi complex Others Saket complex

Note: Saket Complex includes Saket West Block, Saket East Block (unit of Devki Devi Foundation) and Max Smart (unit of Smart Hospital & Research Centre) hospital; East Delhi Complex includes Max Patparganj (unit of Balaji Medical and Diagnostic Research Centre) and Max Vaishali hospital

+14% +27% +31%

Steady margin expansion driven by cost efficiencies, build-up in Saket & East Delhi complexes and revenue ramp-up for new units

% EBITDA Margin, East Delhi complex

xx

% EBITDA Margin, MHC

xx

% EBITDA Margin, Saket complex

xx 20 xx

MHC EBITDA by hospital age

• Rs. Cr.

6.2 8.3 10.2 10.5 12.8 13.2 15.0 14.3 13.9 13.9 14.2 14.2 11.4 12.6 13.6 79 51 75 86 38 70 75 98 107 115 57 38 38 24

• 35

41 35 FY17 FY16 H1 FY18 221 FY15 133 281 +42% 173 FY14 113

• 3

FY13 70 Saket complex East Delhi complex Others 9.9 11.2 11.2

• 11.1
• 0.6

3.5 4.7 8.7 7.8

% EBITDA Margin, Others

xx

MHC H1 FY18 EBITDA shows ~37% growth

• ver rebased H1 FY17

EBITDA

MHC H1FY18 ROCE at 8% (adjusted for land cost for future bed addition)

Note : FY16 excludes Rs. 6 Cr. of one time expenses towards the Pushpanjali and Saket City acquisitions; FY15 excludes Rs 3 Cr of one off expenses; Saket Complex includes Saket West Block, Saket East Block and Max Smart; East Delhi Complex includes Max Patparganj and Max Vaishali ; FY17 margin erosion due to 2 acquisitions of Max Smart and Max Vaishali; H1 FY18 margin erosion due to regulatory impact including ortho implants, minimum wages etc.

+13% +26%

Strong momentum across all volume and value levers in last 5 years

Maintained healthy occupancy levels despite strong bed addition momentum Steady growth in Revenue per occupied bed Consistent focus on key tertiary tower specialities Consistent improvement in Average Length of Patient Stay

Figures in Rs. Thousands Per OBD

908 1,094 1,235 1,457 1,679 1,737 445 592 651 624 1,680 FY14 1,472 378 FY13 1,302 394 FY17 2,330 FY16 2,049 FY15 +13% H1 FY18 2,361

+6% 41

FY16

39

FY15

37

FY14

34

FY13

33

FY17 H1 FY18

44 3.5

FY13

3.5 3.4

FY14

3.2

• 1.4%

H1 FY18

3.2

FY15

3.3

FY17 FY16

Figures in Number of days

NOTE: FY16 and FY17 including Vaishali and Saket City Hospital; Cardiac revenue impacted by stent price capping in FY17 and FY18; Ortho revenue impacted by implant price capping in FY18 6% 9% 53% 2% 11% 8% 14%

H1 FY18 FY17

2% 10% 14% 6% 51% 53% 3% 11%

FY13

12% 10% 10% 10% 5% 8% 15%

FY14

3% 4% 7% 3%

FY16

10% 7% 2% 12% 12% 10% 54% 0% 14% 56% 13% 10% 10% 7%

FY15

2% 55% 13% 13% Renal MAMBS LBS Cardiac Onco Ortho Neuro

73.6 72.1 71.1 73.5 69.7 74.3

• Avg. occupied

beds

• Avg. unoccupied

beds Occupancy (%)

21

MHC growing faster than competition; profitability ratios to improve with maturity of beds and further expansion

All figures for FY17 Max Healthcare Fortis Apollo* Narayana Health

Operational Beds (No.) +2,300 +3,500 7,000 +5,200 Gross Capital Employed (Rs. Cr.) 2,255 8,530^ 6,948^ 1,171 Net Revenue (Rs. Cr.) 2,454 Cr, +17% 3,712 Cr, +8% 4,380 Cr, +12.5% 1,878 Cr, +16% International Rev. 246 Cr, +28%, 10% of revenue 396 Cr,+10% 10.6% of revenue N.A 145 Cr, 8% of revenue Operating EBITDA (Rs. Cr.) 281 Cr 545**/173 Cr 605 Cr 229 Cr EBITDA Growth (%) 31% 8%**/264% (0.3%) 31% EBITDA Margin (%) 11.4% 14.7%**/4.7% 13.8% 12.2% ROCE (%) 7.0% (Mature units 18.1%) 3.6%^ 6.3%^ 14.2% EBITDAR per OBD (Rs. lacs) 19.6 21.2 17.5 8.5 ALOS (days) 3.25 3.56 4.04 4.00 ARPOB/p.a (Rs. Cr.) 1.52 Cr 1.45 Cr 0.98 Cr 0.76 Cr

*Apollo Revenues excludes standalone pharmacy revenue ^ Capital employed and ROCE based on overall consolidated numbers ** Before Net BT Costs; 22

Four dimensions to value creation for MHC

23

Existing network

• ptimizat

ion Hospital network growth Alternate models Key enablers

• Focus on identified

key specialties

• Channel
• ptimization
• Cost initiatives
• Capacity expansion

to 5000+ beds largely through brownfield & select greenfield assets

• M&A
• FAR
• Greenfield
• Max Lab
• Max@Home
• Onco daycare
• Immigration

Center

• Differentiated

positioning

• Service experience
• Patient safety
• People
• Compliance

A

Increasing share of preferred channels to improve profitability

As the new units in the network mature, the share of preferred channels will increase in the revenue mix and tend to mirror the share in current mature units Action plan in place to further increase the share of preferred channels in the mature units

Preferred Channels Non-preferred Channels

Healthcare revenue channel share, FY17 Percent

Walk-in Inter- national

• Sustained brand effort / experience

delivery on new positioning

• ATL/BTL campaigns for key specialties
• Strengthen ER capabilities

TPA

• Seek new engagement models in the

prevention/ wellness space

• Assess co-development of product targeted

at new customer segments

• Establish direct presence and

digital footprint in select markets

• Expand in attractive new markets
• JCI Accreditation at flagship units

MAC Institutional

• Maintain share & improve quality of

business via upcountry channel

• Deprioritize; profitability

improvement through focus on collections, material cost, and ALOS

24

21.2% 17.5% 34.2% 37.4% 20.9% 22.2% MAC 10.1% TPA International H1 FY18 100.0% Institutional/PSU Walk-In 12.9% 100.0% 9.7% FY17 14.0%

TRANS- PLANT

High share of preferred specialties to improve profitability

Share of preferred tertiary/surgical specialties to increase in the revenue mix, in line with the historic trends Action plan in place to grow focused specialties Healthcare revenue specialty share Percent

• Build distinguished leadership

in all DMGs

• Establish a standalone centre
• Personalized medicine

ONCOLOGY

• Provide end to end service offering
• Launch specialized clinics
• Invest in high end Neuro equipment

NEURO SCIENCES CARDIO SCIENCES

• Build comprehensive transplant

center in Saket complex; launch LTP

• Establish KTP and BMT programs in

selected locations

• Focus on high-end procedures
• Partnerships with renowned global

institutions – people & best practices

32% 32% 32% 31% 68% 68% 68% 69% FY-15 FY-16 FY17 H1 FY18 Secondary Tertiary

A

25

• Rs. 97 Cr. of cost savings achieved in FY16 and FY17 through

structured cost initiatives

A

26

• Rs. ~93 Cr. of further cost efficiency built up being targeted for FY18, out of which Rs. 34
• Cr. is already visible in P&L

11 21 8 12 25 19 11 12 12 FY16 Personnel Costs (Incl. Clinicians) 39 Other Indirect Costs Material Costs H1 FY18 FY17 34 58

▪ Procurement efficiency ▪ Formulary driven substitutions ▪ Increase in consumables reusability ▪ ALOS and cost/OBD reduction esp. in PSU patients ▪ Organization restructuring at units ▪ Manpower contract rate negotiations ▪ Physician compensation re-modelling ▪ Materials procurement efficiency ▪ Power saving through cheaper procurement, equipment efficiency improvement and demand management ▪ Collections and deductions management

MHC expansion prioritised in hospitals with superior profitability

27

Saket complex: 200 Mohali: 85 Saket complex: 300 S.Bagh: 104 Saket complex: 800 East Delhi complex: 200 Mullanpur: 400

• Gr. Noida:

380 East Delhi Complex: 106 * Bed Capacity as at March 31, 2017

B

102 1,780 404 285 5,061 FY22 & Beyond FY21 Total FY20 FY17 FY19 106 FY18 2,384

Saket complex :45 East Delhi complex: 35 Gurgaon: 12 Dehradun: 10

• Founded by prominent Delhi clinician; operational since 2010
• Strategically situated on National Highway 24; 5 minutes from

Max PPG - Potential to dominate the E. Delhi and Western UP

• Large asset with potential to grow
• ~300 beds, expandable to 540
• Built on a plot size of 3.46 acres with 0.4 mn. sq. ft.

Builtup

• Infrastructure matching MHC’s LTFS standards

Rechristened MHC Vaishali Post acquisition

The Acquisition Financial Turnaround Q2FY16 H2FY16 H1FY17 12.2 0.6 5% 67% 15.5 2.6 17% 64% 17.4 2.3 14% 70% Revenue* (cr) EBITDA* (cr) EBITDA (%)* Occupancy * Figures are monthly average Higher EBITDA in H2FY16 is due to exceptional items in Mar16

During FY16, MHC acquired the ~300 bedded Pushpanjali hospital in NCR, with potential to grow up to 540 beds

B

28

H1FY18 21.2 3.3 15% 72%

State-of-the-art transplant centre – for all transplants incl. heart, liver, kidney, bone marrow Asia’s premier quaternary care with 7 centres of excellence India's first international patient centre Largest private facility in India Dec 15 H1FY17 13.6

• 0.8
• 7%

69% 16.2 1.45 9% 75% Revenue* (cr) EBITDA* (cr) EBITDA (%)* Occupancy

▪ ~2000 beds in fully built state ▪ Complex spread across 11.5 acres ▪ 300 – 500 beds to be dedicated to Cancer ▪ Infrastructure to support all 6 tower specialties ▪ Adjoining 7.1 acres land to be developed to offer complementary, allied healthcare services such as Rehab, assisted living etc. by GMHRC

Enterprise Value of Rs. 1,025 Cr. (Equity Value Rs. 325 Cr. for 51% stake and debt of Rs. 325 Cr;

• Rs. 375 Cr. (+12% p.a.) to be paid within 3 years for the balance 49% stake)

13.8

• 0.52
• 4%

66% Q4FY16

29

Saket City Acquisition: Opportunity to create one of Asia’s largest Medicity in the heart of South Delhi

B

* Figures are monthly average

H1FY18 23.8 3.6 15% 85%

Max Lab: Consistent growth over the last one and half years by leveraging our assets

C

30

Network Expansion

• Network of 450+ partners
• Over 198 active partners in Sept
• Started operations in NCR, Punjab, Faridabad, and

Uttarakhand

• Added 3 HLMs, over 450+ beds

Technology

• CRM platform for Sales Team for Team monitoring, Lead

creation, Partner management

• Upgrade of LIS platform – project implementation

underway

• Max Lab website under development

Operations

• Sales team expanded to 19 from 8 (Mar)
• Successful launch of SMH, Rudrapur HLM
• Serviced over 54,000 orders in 6 months

Organization

• Team size grew to 125 (35 in Mar17)
• Critical building blocks in place

Building blocks in place to achieve the growth aspiration

0.8 1.7 Q2’18 Q3’17 2.1 Q4’17 1.1 +329% 1.5 Q2’17 Q1’17 3.4 Q1’18 68.0 38.0 Q2’17 A Q3’17 A 13.3 Q1’18 A +411% Q2’18 A 15.6 Q4’17 A 26.0

Sample (‘000)* Revenue (Rs. Cr.)

* Pathology samples from Max@Home are also included

Max@Home: With Rs. 1.5 – 2 Cr. of investment till date, business is likely to end FY18 at ~Rs. 30 Cr. revenue

C

31

Home Sample Collection

• 24*7 coverage;
• 9% revenue contribution through out-of-hospital channels in Q2

Medicine home delivery

• 144% increase in volumes from 856 (June’17) to 2090 (Sept’17)
• Increased post discharge calling coverage from 5% of discharges

in Jul’17 to 35% in Sep’17

Revamp of long stay services

• 26% growth in Sep’17 (vs. Aug’17) in nursing services driven by

a systematic lead management process

New territory- Mohali

• Phased launch starting with sample collection, pharmacy and

assistance services

• Total business of 14 lacs in Sept’17

Max@home B2C platform

• ~450 tech features ; ~30 processes; 5 service line journeys
• Wireframes for ~20 roles across portal, mobile app & tablet
• Development & UAT planned in Q3FY18

11.6 5.5 4.1 4.8 5.6 H1’16 H2’16 H1’17 H1’18 H2’17 +179%

Revenue (Rs. Cr.)

New services Existing services

0.26 3.88 6% 94% 4.76 6.80 59% 41% 2.74 2.75 50% 50%

Samples (‘000)

31.3 19.6 13.2 6.9 4.7 +560% Q2’18 A Q1’18 A Q4’17 A Q3’17 A Q2’17 A

Steady state EBITDA margin ~25%

Onco Day Care Center: Operationalized in July’16, EBITDAR break even on the 3rd month

C

32

• Standalone specialized facility away from

the hospital to ensure comfort and care for our patients during chemotherapy sessions

• Helps patients with their treatment and

disease by providing a non-hospital environment and a highly efficient and expert experience

• Key Differentiators:
• Strong clinical protocols
• Staff specially trained in soft/service

skills

• Personalized treatment

21st June’16 Chemo started Saket doctors OPD started 7th July: X-ray started

1st Sept: Ultra-sound started

9.2 36.0 51.8 61.8 216.4 218.5 275.3 439.2

14th June'16 July'16 Aug'16 Sep'16 Q3'17 Q4'17 Q1'18 Q2'18

Rev - Actual H1 FY18 EBITDAR margin

• f 17.5% and EBITDA

margin of 8%

0.1 0.4 0.6 0.6 0.7 0.8

June'16 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Daycare Chair turnover IMRB Scores

Pan MAX 75% Oncology 77% Onco DayCare 91%

Channel Mix (H1’18)

Cash 49% TPA 20% Others 31%

Success of this centre has paved the way for opening more such centres; Work on for the 2nd one in Gurgaon

Figures in Rs. Lacs

Immigration Center: Revenue growth at 131% vs. H1’LY Max Bike Responder: Immediate medical care in emergencies

C

33

8.3 6.3 4.8 3.4 3.6

H1’18 +131% H2’16 H1’16 H1’17 H2’17

58.8 39.4 38.2 29.9 32.1

H1’16 H1’17 H2’16 H1’18 +83% +49% H2’17

Revenue (Rs. Cr.) Volume (‘000) Immigartion Center

New Center

• pened

Figures in Rs. Cr.

120

AVERAGE MONTHLY CALLS

15

AVG. REACH TIME

MINS

58

LIVES SAVED & COUNTING… Max Bike Responder

Success of this centre has paved the way for opening more such centres; Work on for the 2nd one in Mohali

www.maxbupa.com www.maxindia.com

MAX INDIA LIMITED

MAX BUPA HEALTH INSURANCE LIMITED

34

A symbiotic partnership in health insurance

Helping people live longer, healthier, happier lives

+

What we do Highlights

Domestic Health Insurance Global Health Insurance Dental and Travel insurance Advice Primary Care Clinics Dental clinics Aged Care

► Leading international healthcare group present across 190+ nations, provides personal and company health insurance, runs care homes for the elderly and hospitals in addition to a range of health services ► Founded in 1947 in the UK, Bupa employs over 86,000 people across UK, Australia, Spain, Hong Kong, Poland, New Zealand, Chile, Brazil, Thailand, Saudi Arabia, India and the US ► Revenues of over £11 billion, over 70% coming from health insurance covering over 16.5 million customers ► Diversified group with interests in insurance, healthcare, manufacturing, real estate, learning and senior living ► Founded in 1985 with an entry in the bulk pharma business, Max has evolved into one of the leading health services organizations in India ► Over INR 168 billion in revenues, serving over 9 million customer with 23,000 employees and 2800 doctors.

Max Bupa is a 51:49 joint venture between Max Group and Bupa

In the business of Life

35

Our Vision and Mission

36

To be the most admired health insurance company in India To help customers live healthier, more successful lives

Vision Mission

Industry landscape

Health insurance market (including PA, Travel & contribution by life insurers)

FY 16-17 2,800 Travel & LI contribution 2 PA FY10-11 Retail 50,000 1,600 Government sponsored 9,100 Corporate FY19-20 (Estimated) 23,600 17,500 4,500

GWP in Rs cr

34,374

Low penetration and coverage ▪ HI penetration (premium as % of GDP) is only ~0.2% ▪ Only 27% of population has any kind of health insurance, but significant under insurance Increasing affluence and awareness ▪ Rise in income levels and healthcare spend per capita ▪ Middle class expected to increase to 41% of population by 2025 (from 5% in 2005)1 Rise in health care costs ▪ Medical inflation over 10% ▪ High out-of-pocket expenses (62% v/s ~10% in US/UK & ~30% in China) Rise in incidence of chronic diseases (viz. Cancer, heart diseases) & lifestyle related diseases (diabetes) Regulatory & policy level interventions ▪ IRDAI’s consumer-centric approach ▪ Higher tax saving incentives on HI

Key drivers of growth Indian health insurance market is likely to grow by ~15% CAGR in next 3 years

1 Mckinsey report ‘Tracking the growth of India’s middle class’ in 2007 2 Growth rates for Travel & LI contribution of HI not available (Assumed at 16% same as 5 year CAGR of PA) 37

* Numbers are excluding Overseas medical and personal accident, includes only (B2C, B2B, B2G)

Industry landscape

38 1,750 2,455 346 525 3 2 Apr-Sep'16 Apr-Sep'17 B2G B2B B2C Segment-wise GWP (INR Cr)

Industry growth during H1FY18*

5,528 6,780 7,408 8,771 1,200 1,391 Apr-Sep'16 Apr-Sep'17 B2G B2B B2C +20% 14,137 16,942 +42% 2,099 2,981

SAHI growth during H1FY18* MBHI growth during H1FY18*

26%

Overall sales growth

23% 18% 16% 40% 52%

• 25%
• MBHI @ 26% is growing ahead of overall HI industry (20%)
• SAHIs are growing at a much faster rate than the industry, while also gaining market share amongst all private players.
• MBHI is growing lower than other SAHIs on account of heavy expansion of competitors in terms of branches, feet on street, agents

footprint, compromising on underwriting practices etc.

+194% +94%

+62% +64%

+547%

Cigna 122 82 19

* Aditya Birla HI not included as business started in Oct’16

Total Opex2 (INR Cr)

1 FY’16-17 numbers for B2C segment are derived basis past trends and historical data, numbers are excluding Personal accident & Overseas medical (data not available by segment) 2 Overall operating expenses of the company (inclusive of all segments)

Valuation led approach Measured approach New entrants*

SAHI’s divided into 3 categories for a like to like comparison

FY14-15 FY15-16 FY16-17

Total Capital (INR Cr)

475 350 Star 1,030 719

+62% +50%

+2% +17%

616 Apollo 616 603 MBHI 926 898 791

+98%

Cigna 574 435 290 Star 46 56 61 Religare

+33% +26%

290 366 320 MBHI 83 101 110 Apollo

+33% +8%

28 27 26

+46%

Cigna 19 16 13

+38% +177%

+15%

14

+41%

+75%

Cigna 9 8 5

Total Headcount (‘00) Total Branches GWP - B2C1

► Focus on increasing topline ► High acquisition cost. Total

• pex increase over last 2

years:

• Star saw 39% increase in
• pex
• Religare saw 104%

increase in opex ► Star and Religare to sell entire stake ► Underwriting grid relaxed by Star (upto 65 years) and Religare (upto 50 years) ► Focus on balanced long term growth ► MBHI has grown at a higher rate than Apollo over last 2 years in B2C space. MBHI 64% vs Apollo 62% ► MBHI total opex increased by 10% vs Apollo where opex increased by 38% ► 100% of product portfolio of MBHI facing price rise challenge in current year with tighter underwriting rules ► Focus on growing revenue; low GWP base ► Cigna acquiring business at high acquisition cost ► ABHI started business in Oct’16 ► Aggressive offers on porting business offered by new entrants ► Aggressive poaching of talent pool from MBHI

+104% +39%

457 256 353

+38%

+10%

+82%

Cigna 222 182 122

Total GWP

8.34 2.75 9.34 5.30

2.0

Total incremental GWP per incremental rupee of opex

Industry landscape – MBHI is most Operationally efficient, Product Innovator and have the best underwriting practices amongst SAHI Players

39

Journey since inception

GWP, Rs cr Channel Service model

• B2C
• Agency
• Direct

channels

• TPD
• In-house

claims processing

• Entered B2G - First

RSBY scheme won

• Entered B2B

business

• Launched ‘Walk for

Health’, annual brand property

• First Banca partnership

(Deutsche bank)

• Rationalized TPD2
• 1. Does not include rural lives | 2. From ~70 partners to top 5
• Reached ~3,100

network providers

• 30-min claims

settlement (92% cases)

• Launched three

more banca partnerships

• Prioritized B2C

Retail Lives, ‘0001

xx%

Y-o-y growth CAGR

• CRM launched
• Walk for Health

went national touching 33 MM lives

• Launched 4

partners (Sarv UP, Muthoot, Coverfox, Bank Bazaar)

Segment

• Launched Bank
• f Baroda

serving more than 5,400 branches

• Standing

Instructions for auto renewal

• First ‘embedded’

product launched at Federal bank FY10-11 FY11-12 FY12-13 FY14-15 FY15-16 FY13-14

99 207 309 373

296% 108% 53% 18%

47 215 454 681 799 476 1,010 26

FY16-17

28%

594 1,345

25%

5 H1’17-18

327 1,498

• Commenced

business with South Indian bank serving more than 850 branches

• Launched

India’s first “Any time health” machine

• Launched Point
• f care desks

for customer delight

40

Healthy growth with consistent improvement in combined ratio

▪ Max Bupa’s focus has been on the B2C segment since inception ▪ While it is harder to build a B2C book (linear customer acquisition vs. lumpy demand

• f B2B or B2G), Max Bupa has

grown faster than market (market growth ~22% CAGR – till FY’16-17) ▪ B2C focus driven

• perating

model choices and some execution challenges have resulted in higher upfront opex spend

Combined Ratio* (%) Gross written premium (Rs cr)

* Combined ratio = Claim ratio (Net claim incurred / Net Earned premium) + Opex ratio (Opex / GWP) + Commission ratio (Net commissions / GWP)

151% 142% 127% 118% 116% 112% 2012-13 2013-14 2014-15 2015-16 2016-17 H1'17-18 162 245 354 466 584 322 1 8 7 2016-17 H1’17-18 +30% 594 6 4 2015-16 476 6 4 2014-15 373 18 2013-14 309 56 2012-13 207 38 327 2 3

B2C B2B B2G

41

Max Bupa today

In a large, fast growing market Max Bupa delivers 2.5m customers, a vast distribution network and leading brand

1,818 employees 7 banca partners with 8,800 branches accessing 101mn customers1 13,587 agents 98% B2C business 4,064 providers in network 64mn* lives touched through Walk for Health (2016-2017) 1.5m retail customers 2.5m total customers GWP Rs. 384 cr (Apr-Oct’17) 26% Growth (Apr-Oct’17)**

Focus on B2C segment from inception Investments in direct channels to support the “pull” model; Premium infrastructure (office locations and size) in line with overall positioning Launched first to industry innovations - Highest Sum Insured options, No age restriction for enrolment, No claim loading, Guaranteed renewability, No 2 year waiting period Max Bupa is the only insurance company with an annual brand property - Walk for Health initiative Customer service is a key focus area – ~78% of customers rate claims experience with Max Bupa as very good

• r excellent

Since inception, we started offering in- house claims in a primarily TPA serviced market

For the period ended Oct, 2017 *Duplicate reach across mediums

**Growth over same period last year

42

Comprehensive product suite

Key features include hospitalization costs including: ► State of art coverage - Cashless international coverage (market first) ► Lowest (2 years) pre-existing disease waiting period ► Out Patient benefits ► AYUSH benefits ► Maternity & New Born benefits ► Coverage from Day 1 for accidents ► Waiver of 24 months waiting period for specific conditions below 45 yrs ► Loyalty benefit at renewal

Our flagship indemnity product with the most comprehensive coverage

Heartbeat

Key features include hospitalization costs including: ► No limit on room rent and pre and post hospitalization expenses ► Added protection with Unique Refill benefit ► All day care procedures covered ► Unmatched renewal benefits − No Claim Bonus (No reduction in case of claims) − Health check ups to help keep track of the health condition ► AYUSH in-patient treatment ► Super top up

An indemnity product with refill benefit, alternative treatments & Extended Family First proposition

Health Companion

Accident Care: ► Accidental death benefit ► Accidental Permanent Total Disability ► Accidental Permanent Partial Disability benefit Critical Illness: ► Covers 20 critical illnesses ► 2 options: Lump sum & Lump sum + staggered pay-out for 5 years Hospital Cash: ► Daily cash benefit & double cash benefit for ICU

A fixed benefit product with unique 3-in-1 combination of personal accident, critical illness & hospital cash

Health Assurance

Group Health Insurance includes: ► Group cover for hospitalization benefit Group Personal Accident: ► Accidental Death , Permanent Total & Partial Disability Loan linked group critical illness ► Loan linked cover for 25 critical illnesses ► Single pay up to 5 years Group medical cover ► Customizable product for employer employee groups – B2B

A group product with customized propositions by selecting from over 35 product features and parameters

Group Platform

43

Distribution architecture

▪ Largest distribution channel for the company ▪ Spanning 29 branches across 19 cities ▪ Over 49% contribution of overall revenue ▪ Frontline sales force of 389 Agency Managers ~14,000 agents ▪ One of the most productive agency force amongst SAHIs (Standalone Health Insurers) ▪ 7 Banca partnerships (2 foreign banks, 4 Indian banks and 1 rural bank), the highest numbers amongst SAHIs1

• Network of 8,800 bank branches across the country
• 604 FOS (Feet-on-street)

▪ 3 NBFC tie-ups (Capital First, Muthoot, Bajaj Finserv) ▪ Brokers (Bajaj Capital, NJ Brokers, Shriram) ▪ Rural business (RSBY) ▪ One of the largest captive tele-sales set-up in industry ▪ Capacity of 89 out-bound tele-callers ▪ State-of-the-art technology infrastructure (Dialer / CRM) with secure environment ▪ Online sales through MBHI website & web aggregators (6 partners, including Policy Bazaar – a leading industry player) ▪ Dedicated sales-force ▪ 64 full-time employees to address high-net worth individuals’ needs ▪ Spread across top 4 metros

Agency Banca & Alliances Digital Direct sales

Distribution updated for Oct 2017

44

External recognition

45

Strategic priorities – strengthening the foundation

Remarkable customer experience Profitable Growth Portfolio Management

• Renewals

Build Digital People First Customer Centric Profitable Growth



1 2 3 4 5

A B C D

Digitally enable end to end customer journey Build a Customer centric, Compliant & Cost conscious Culture Broad base the franchise with partnerships & alliances Provider of choice in the Affluent segment in urban India

46

Disclaimer

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

• ffering of shares by the Company. You agree to keep the contents of this presentation and these materials confidential.

47

ANNEXURES

48

• Mr. Rahul Khosla (Chairman)

President – Max Group Over 30 years of global experience in Banking and Financial markets.

• Mr. Mohit Talwar

Managing Director at Max India Ltd. & Max Financial Services Ltd., Over 30 years of experience in Corporate Finance and Investment Banking.

• Dr. Omkar Goswami

Economist and Leading Academic Serves on Board of many Indian MNCs as Dr Reddy’s, Infosys, IDFC, Crompton Greaves, Cairn India Ltd. etc

• Mr. Kummamuri Murthy Narasimha

Independent Director; Leading Finance professional associated with the development of Cost & Management Information Systems for over 150 firms

• Mr. Rajit Mehta

Managing Director & CEO- Max Healthcare Over 20 years of experience in financial services. Previously Chief Operating Officer at Max Life Insurance.

• Dr. Ajit Singh

Partner at Artiman Ventures, focusing on early- stage technology & life science investments PhD in Computer Science from Columbia University

• Dr. Pradeep Kumar Chowbey, Padmashri

Director of Max Institute of Minimal Access, Metabolic and Bariatric Surgery. More than 35 yrs

• f experience in Lap Surgery, completed 70,000

major Lap procedures

• Mr. Andre Meyer

Chief Executive Officer, Life Healthcare Group Extensive experience at executive level in employee benefits and healthcare sectors

MHC - Board of Directors

49

• Mr. Adam Pyle

Non Executive Director and Group Executive, Strategy and Investor relations, Life Healthcare Group Commerce and Law graduate and currently responsible at LHC for driving the international (Poland, India and other territories) strategy, South Africa strategy and managing Investor relationship

• Mr. Pieter Van Der Westhuizen

Non Executive Director and Chief Financial Officer, Life Healthcare Part of the LHC group for last 17 years and has fulfilled various financial roles

• Mr. Rajit Mehta

Managing Director & CEO- Max Healthcare Over 20 years of experience in financial services. Previously Chief Operating Officer at Max Life Insurance.

• Mr. Yogesh Sareen

Senior Director & Chief Financial Officer Over 20 years of experience in across all facets of finance; previously CFO of Fortis Healthcare.

• Mr. Rohit Kapoor

Senior Director & Chief Growth Officer 18 years of diverse experience across industry and management consulting with McKinsey & Company

• Mrs. Swati Rustagi

Director- Human Resources & Chief People Officer Over 17 years of experience in HR across FMCG, Financial Services and Health Care sectors. Previously global head of HR at Glenmark Pharmaceuticals

• Mr. Anil Vinayak

Director & Zonal Head – NCR 1 Over 23 years of experience in Business Management and Sales & Marketing; previously with Amex

• Mr. Anas Wajid

Director- Sales & Marketing More than 17 years of experience in diverse fields such as advertising, retail , healthcare and media. Previously Head, Sales and Marketing at Fortis Healthcare

• Dr. Sandeep Buddhiraja

Director- Clinical Directorate & Institute of Internal Med. Over 23 years of experience in the field of Internal Medicine

• Mr. Rakesh Prusti

Director - Legal, Compliance and Regulatory Affairs Over 19 years of experience in diverse sectors such as Trading, IT, Export and Manufacturing; previously with Carrefour and NIIT

• Mrs. Vinita Bhasin

Senior Vice President & Head of Service Excellence More than 19 years of in-depth experience across the Financial Services sector; previously with Max Life Insurance

• Mr. Sumit Puri

Chief Information Officer Over 21 years of experience in varied industries such as Health/ Life Insurance, IT/ITES, and Consulting; previously CIO of Prudential Life Assurance

MHC – Management Team

50

Key Physicians

51

• Dr. Harit Chaturvedi

Chairman – Cancer Care, Director & Chief Consultant - Surgical Oncology Over 25 years of experience in Surgical Oncology.

• Dr. Sandeep Buddhiraja

Director - Clinical Directorate & Institute of Internal Med. Over 23 years of experience in the field of Internal Medicine

Strong consultant bench strength of 350+ across specialities : ▪ Cardiac – 100+ ▪ Oncology – 50+ ▪ Orthopaedics – 50+ ▪ Neurosciences – 50+ ▪ Renal – 50+ ▪ MAMBS – 25+

• Dr. Anurag Krishna

Director- Paediatrics & Paediatrics Surgery Over 20 years of experience in Paediatric surgery - complex congenital malformations

• Dr. A.K. Singh

Director – Max Institute of Neurosciences, Dehradun Renowned Neurosurgeon having 40 years experience Recipient of the BC Roy award

• Dr. Pradeep Kumar Chowbey, Padmashri

Director of Max Institute of Minimal Access, Metabolic and Bariatric Surgery. More than 35 yrs of experience in Lap Surgery, completed 70K+ major Lap procedures

• Dr. K. K. Talwar

Chairman - Cardiology, Max Healthcare Clinical experience of more than 39 years Former Head, Department of Cardiology, AIIMS

• Dr. Anant Kumar

Chairman – Urology,Renal Transplant, Robotics(Max Saket Complex) and Uro-Oncology Max Saket 2200 Kidney Transplantations in the last 25 years and over 1500 lap donors nephrectomy

• Dr. Subhash Gupta

Chairman - Liver Transplant & Biliary Sciences 2,200+ liver transplant surgeries & over 30 year experience in Liver Transplants Recipient of the BC Roy award

MHC Network* – Performance Dashboard (Q2 & H1FY18)

*The above results are for MHC Network of hospitals and includes results for Max Super Specialty Hospital, Saket, unit of Devki Devi Foundation, Max Super Speciality Hospital, Patparganj, unit of Balaji Medical and Diagnostic Research Centre ; Saket City Hospital unit of Gujarmal Modi Hospital & Research Centre & Max Multi Speciality Hospital Greater Noida unit of Four Season Foundation ^ on the basis of net revenue

52

Rs Cr

Sep-17 Sep-16 Sep-17 Sep-16

a) Financial Performance Revenue (Gross) 712 667 7% 1,414 1,300 9% Revenue (Net) 676 640 6% 1,342 1,248 8% Direct Costs Material Cost 169 159 6% 336 319 5% Clincian Payout 116 109 7% 234 213 10% Contribution 390 372 5% 773 716 8% Contribution Margin^ 57.8% 58.1% (26) bps 57.6% 57.4% 17 bps Indirect Costs Personnel Cost 170 148 15% 337 294 15% Other Indirect overheads 117 113 3% 232 222 4% HO Costs 34 31 9% 70 60 16% EBITDA 69 80

• 13%

133 140

• 5%

EBITDA Margin^ 10.3% 12.4% (217) bps 9.9% 11.2% (129) bps Finance Cost 32 35

• 9%

64 70

• 8%

Cash Profit 37 44

• 16%

69 70

• 1%

Depreciation 34 30 15% 67 60 12% Profit Before tax 3 15

• 79%

2 10 80% Tax 1

• -

2 - 0% Profit /(loss) after tax 2 15

• 83% (0) 10
• 102%

b) Financial Position Net Worth 1,124 1,108 1% 1,124 1,108 1% Net Debt 1,168 1,078 8% 1,168 1,078 8% Tangible Fixed Assets - Gross Block 2,056 1,985 4% 2,056 1,985 4%

Key Business Drivers Quarter Ended Y-o-Y Growth Half Year Ended Y-o-Y Growth

53

MHC Network* – Performance Dashboard (Q2 & H1FY18)

*The above results are for MHC Network of hospitals, includes results for Max Super Specialty Hospital, Saket, unit of Devki Devi Foundation, Max Super Speciality Hospital, Patparganj, unit of Balaji Medical and Diagnostic Research Centre; Saket City Hospital unit of Gujarmal Modi Hospital & Research Centre and Max Multi Speciality Hospital Greater Noida unit of Four Season Foundation

Sep-17 Sep-16 Sep-17 Sep-16

a) Patient Transactions (Nos in lacs) Inpatient Discharges 0.53 0.51 5% 1.05 0.99 7% Day care Procedures 0.13 0.13 1% 0.26 0.25 4% Outpatient Footfalls 17.99 17.64 2% 35.24 33.51 5% Total 18.66 18.28 2% 36.56 34.75 5% b) Average Inpatient Operational Beds 2,369 2,354 1% 2,362 2,337 1% c) Average Inpatient Occupancy 74.3% 77.9% (367) bps 73.6% 74.7% (107) bps d) Average Length of Stay (days) 3.03 3.21 6% 3.02 3.11 3% e) Average Revenue/Occupied Bed Day (Rs) 43,959 39,522 11% 44,441 40,696 9% f) Other Operational Data Physicians 2,854 2,571 11% Employees 9,202 8,436 9% Customer Base (in lacs) 39.1 32.9 19%

Key Business Drivers Quarter Ended Y-o-Y Growth Half Year Ended Y-o-Y Growth

54

*Saket Complex includes Saket West Block, Saket East Block (unit of Devki Devi Foundation) & Max Smart (unit of Smart Hospital & Research Centre) hospital ^East Delhi Complex includes Max Patparganj (unit of Balaji Medical and Diagnostic Research Centre) & Max Vaishali hospital

MHC Network Hospitals (Saket* & East Delhi^ Complex) – Performance Dashboard (Q2 & H1FY18)

Unit Sep-17 Sep-16 Sep-17 Sep-16

Saket Complex * a) Financial Performance Revenue(Net)

• Rs. Cr

257 237 9% 512 462 11% EBITDA

• Rs. Cr

30 32

• 8%

62 57 8% EBITDA Margin % 11.6% 13.6% (206) bps 12.1% 12.4% (29) bps b) Average Inpatient Operational Beds No. 721 750

• 4%

728 753

• 3%

c) Average Inpatient Occupancy % 78.1% 75.7% 244 bps 76.8% 72.5% 429 bps d) Average Revenue/Occupied Bed Day Rs. 52,139 46,898 11% 52,511 47,914 10% e) Average Length of Stay (days) 3.25 3.26 0% 3.23 3.19

• 1%

East Delhi Complex ^ a) Financial Performance Revenue(Net) 173 164 6% 336 318 6% EBITDA

• Rs. Cr

21 25

• 18%

41 45

• 9%

EBITDA Margin % 12.0% 15.5% (344) bps 12.2% 14.3% (202) bps b) Average Inpatient Operational Beds No. 694 659 5% 685 652 5% c) Average Inpatient Occupancy % 78.8% 83.0% (421) bps 78.0% 79.4% (139) bps d) Avg. Revenue/Occupied Bed Day Rs. 36,752 34,506 7% 37,160 35,499 5% e) Average Length of Stay (days) 3.04 3.37 10% 3.03 3.24 7%

Key Business Drivers Quarter Ended Y-o-Y Growth Half Year Ended Y-o-Y Growth

MBHI - Board of Directors

55

K Narasimha Murthy Director

• Mr. Murthy entered the Profession of

Cost & Management Accountancy in

• 1983. He is associated with the

development of Cost & MIS for more than 150 companies

John Howard Lorimer Director

John joined Bupa's Board as a Non- Executive Director in July 2011. He is Chairman of Bupa's Audit Committee and a member of Bupa's Risk Committee and UK Regulated Entities Board

Marielle Theron Director

Ms.Theron is a Principal of Erlen Street Corporation, Switzerland, a company that specialises in strategic investment and management consulting solutions

Pradeep Pant Director

Pradeep is a highly experienced senior business leader, now involved in business consulting and education

Ashish Mehrotra MD & CEO

Ashish has over two decades of extensive banking experience. In his last role as MD and Head for Retail division

• f Citibank in India, he was pivotal in

enabling bank gain a leadership position in the wealth management business

Rajesh Sud Chairman & Director

Rajesh Sud is the CEO and Managing Director of Max Life Insurance, one of the first three private life insurers to start operations in 2001

Rahul Khosla Co-Vice Chairman & Director

Rahul Khosla is the President of Max Group and Executive President, Max Financial Services. He is a seasoned business leader with 30 years of experience in India & globally

Joy Linton Director

Joy is the CFO of Bupa Plc. She has

• ver 25 years’ experience in financial

and strategic roles in Australia and the UK.

Mohit Talwar Director

Mohit is the Managing Director of Max Financial Services and Max India. He has an experience of over 30 years in Corporate Finance and Investment Banking.

• Dr. Burjor Banaji

Director

• Dr. Burjor Banaji is an ophthalmic

surgeon who introduced several firsts in the field of ophthalmology to India

David Fletcher Co-Vice Chairman & Director

David Fletcher joined Bupa as Chief Internal Auditor in March 2014 and has been Managing Director of Bupa International Development Markets (IDM) since Sep 2014

MBHI – Management Team

56

Vikas Gujral

Chief Operating Officer With over 18 years of experience, Vikas joins us from Max Life

• Insurance. Prior to Max Life, he has

worked with Bharti Airtel and GE Capital.

Rahul Ahuja

Chief Financial Officer Rahul has wide domain expertise built

• ver 19 years mainly in corporate

banking, financial services and telecom.

Anurag Gupta

Head – Agency Anurag joins Max Bupa from Max Life, where he has held a number of senior roles across distribution and product management over a decade. Aseem has nearly two decades of experience in sales and distribution and has worked across channels - Agency, Banca, Special markets & Direct Sales.

Aseem Gupta

Head – Portfolio Management & Affinity Channels

Priya Gilbile

Head – Health Risk Management Priya is an adept healthcare professional with more than 16 years

• f experience in healthcare & health

insurance industry.

Anika Agarwal

Head – Marketing & Direct Sales Anika heads the Marketing & E- commerce verticals at Max Bupa and is responsible for brand planning, digital media, communications, consumer insights, direct sales and E- commerce.

Joydeep Saha

Appointed Actuary Joydeep brings along a vast experience in Health and Property & Casualty Insurance. He has earlier worked with other insurers like Religare, L&T General, Raheja QBE & Iffco-Tokio.

Atul Bhandari

Head – Banca and Alliances Atul has 15 years of experience in product/process management & sales/distribution, he joined us from CITIBANK NA, prior to which he worked in Standard Charted bank.

Partha Banerjee

Head – Legal & Compliance Partha brings along 20 years of diverse experience in Corporate, Commercial, Taxation, IPR, Exchange Control, M&A, Labour Laws and other substantive and procedural laws.

Ashish Mehrotra

MD & CEO Ashish has over two decades of extensive banking experience. In his last role as MD and Head for Retail division

• f Citibank in India, he was pivotal in

enabling bank gain a leadership position in the wealth management business

Max Bupa – Performance Dashboard (Q2 & H1FY18)

57

* Earned Premium lower by Rs 6 Cr in Q2FY18 & Rs 14 Cr in H1FY18 due to change in Unearned premium accounting from 1/365 method to 50% of net written premium, excludes the impact of reinsurance ceded ^ Normalised profit (excluding one-offs) at Rs 0.1 Cr in Q2 vs net loss of Rs 10 Cr in PY; H1FY18 profit of Rs 9 Cr vs net loss of Rs 16 Cr in PY

Sep-17 Sep-16 Sep-17 Sep-16

a) Gross written premium income First year premium 54 50 8% 108 92 17% Renewal premium 115 89 29% 219 168 30% Total 168 138 22% 327 260 26% b) Net Earned Premium* 146 148

• 2%

279 260 7% c) Net Profit /(Loss) ^ (6) 23

• 124% (5) 18
• 129%

d) Claim Ratio(B2C Segment, normalized) 60.3% 60.4% (10) bps 57.9% 57.0% 90 bps e) Avg. premium realization per life (B2C) 8,057 6,937 16% 7,952 6,937 15% f) Conservation ratio (B2C Segment) 83% 84% (159) bps 83% 84% (147) bps g) Lives In force in millions (including RSBY) 2.5 2.2 15% h) Number of agents 13,357 14,705

• 9%

i) Paid up Capital 926 926

• Key Business Drivers

Quarter Ended

Y-o-Y Growth

Half Year Ended

Y-o-Y Growth

MAX INDIA LTD.

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

58