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Max India Limited
Investor PresentationJanuary 2009
BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:INwww.maxindia.com
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VISION“To be one of India’s most admired corporates for service excellence”
Max India – An Introduction
Life Insurance
Protecting Life
HealthcareCaring for Life
Clinical Research
Improving Life
Health Insurance*
Enhances Life
* JV agreement signed on September 3, 2008. Statutory approvals in process.
Multi-business corporate I Focused on people and service
“ IN THE BUSINESS OF LIFE ”
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Our Other Business
ManufacturingNiche high barrier polymer films & Leather Finishing Foils.
Focus on healthcare, children and the environment.
Corporate Social Responsibility
Max India – An Introduction
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Max India Group – Key Highlightsn A leading conglomerate of repute in India
Life Insurance – 74:26 JV with New York Life
Healthcare – 70% owned. 8 healthcare facilities with 800 Beds
Clinical Research – 100% owned. 250+ active sites
Speciality Packaging – capacity of 29,000 TPA. 100% utilization
Health Insurance – JV with BUPA Finance Plc, UK
n 3 Million Customers… 20,000 Employees… 72,000 Agents… 1,200 Doctors…
n Track record of successful international business partnerships over last 20 years
Pharmaceuticals Electronic Component
Mobile Telephony
CommunicationServices Plating Chemicals Medical
Transcription
Hutchison COMSAT ATOTECH
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Consolidated Performance Snapshot(Rs. Crore)
CONSOLIDATED FINANCIAL HIGHLIGHTS
Details 9M’FY09
Growth
Y-o-Y
(%)
FY’07-08
Growth
Y-o-Y
(%)
Operating Revenue 3,194 49% 3,244 78%
Investment and Other Income* 290 -54% 367 110%
Total Revenue 3484 26% 3,611 81%
Net Income Before Tax** (350) - (43) -
Net Worth 1,278 1,537
Preference Shares 250 250
Loans Funds 359 552
Fixed Assets (Net Block) 898 718
Treasury Corpus 390 1,261
Life Insurance Investments (AUM) 4,827 3,575
7001,111
1,994
3,611 3,484
* Investment & other Income is lower because of downturn in capital markets and utilization of treasury corpus to fund expansion plans of the group.** Losses have increased on account of significant expansion being undertaken in the life insurance business.
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FDI –Warburg Pincus13.4%
Max India – Shareholding
FII – Warburg Pincus9.1%
FII – Others27.7%
Others15.2%
Number of Outstanding Shares - 222,030,310
Promoter Group –Analjit Singh
34.6%
As on Dec 31, 2008
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n Joint-venture with BUPA Finance Plc., UK, world leader of highest
pedigree in this space
n Max India to hold 50% in the joint-venture
n Management team in place
n Currently in the process of seeking regulatory approvals
n Market roll-out by fourth quarter of 2009
n Initial capital of Rs. 100 Crore; peak capital commitment Rs 400 -
450 Crore
Max India to foray into Health Insurance…
US$ 1 = INR 49
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Max New York Life Insurance [ MNYL ]
www.maxnewyorklife.com
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n Joint Venture between Max India and New York Life, a fortune 100 company witharound $280 billion in assets under management
n Max India and NYL jointly drive growth strategy
n Max provides Indian industry perspective and manages the regulatory environment
n Peak equity commitment around Rs. 3,800 Crore; Rs. 1,782 Crore already infused
Max New York Life Insurance [ MNYL ]
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India’s Life Insurance Industry has shown strong growth
Growth driven by…n Strong GDP growth (Average of 8.9% since last four years)
n Low insurance penetration (4% of GDP as against over 8% in developed countries)
n Aggressive distribution expansion by private players (Over 5000 new offices in 4 years)
n Favorable demographics (working population, aged 15-64 yrs, is over 60%)
n Product Innovation (Unit Linked products, Health & Pension)
Individual Adjusted Premium (Individual Non-Single Premium + 10% of Individual Single Premium)
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Industry growth rate have moderated
Source: IRDA website* MNYL Internal Estimates and analysts reports
Expected Growth over next five years …n Private players expected to grow at a CAGR of ~25% from FY 2008 to FY 2012 *
n Life Insurance penetration to be around 5% of GDP by FY 2012 Vs 4% now *
Pvt. Players 18%
MNYL 42%
LIC - 28%
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Market PositionInsurance Sales (Rs. Crore)
Source: Insurance Regulatory & Development Authority, Adjusted to include only 10% of Single PremiumAll Others include: ING Vysya, Aviva, Shriram, Bharti AXA, Sahara, IDBI Fortis, Future Generali, Canara HSBC OBC and Aegon Religare
CompanyIndividual New Business
PremiumIndividual Policies
ICICI Prudential 6,684 2,914Bajaj Allianz 5,642 3,745
HDFC Standard Life
1,873 1,074
Max New York Life 1,308 874
Met LifeKotak Life
2,653 926Reliance Life
1,976
235
All Others
767
1,046
Total Private Life Insurers 26,570 13,262
MS of Private Players (%) 50 26
61,712 688
SBI Life
946 3147
Tata AIG 497793
(FY 2007-08)
3,6462,6801,955
1,185
1,877
1,573
663
18,238
60
1,606
7887
594
(Apr-Dec’08)(‘000)
(FY 2007-08)(Apr-Dec’08)
1,8821,8081,355
900
598
191
885
9,947
32
4812
394
479
2,216 949Birla Sunlife
1,671 643
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n Multi-channel distribution strategyHighly productive agency model (Over double the average productivity ofprivate players)Strong non-agency relationships contributing to over 36% of sales in 9M’08-09
n Comprehensive product suite across all market segmentsStrong traditional products portfolioComprehensive Unit Link product suiteRecently launched Health and Retirement products
n Best in class training capabilities (over 850 trainers on board)Advise based insurance sales by AgencyDetailed need analysis
n Long tenor products and young customer base
n Conservation ratio* of 85% in 9M’08-09 against 83% in FY 07-08
n Scalability of IT and administration systems
n Strong management team with proven execution capabilities
MNYL Key Differentiators
* Conservation ratio is defined as Current Period Renewal premium / (Last Period Renewal Premium + Last Period Regular Business Premium)
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n Golden Peacock Innovation Award 2008 for Max Vijay
n Grant of US$ 400K from International Labour Organization (ILO) for MaxVijay
n 7th best company to work for in India by Mercer Business Today Survey
n CIO 100 Award for innovation in technology implementation
n CII Business Excellence commendation for “Strong Commitment toExcel”
n Outlook Money ranked MNYL # 1 in Slow, Medium and Quick fundcategory
MNYL – Rewards & Recognition
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MNYL – The Leading Agency Sales Force
Source: IRDA Journal, media reports and company’s internal estimates
Adjusted Single premium
446 59,000 8,393 0.68
835 116,000 8,000 0.40
1,564 159,000 10,928 0.76
265 42,500 6,929 0.20
433 38,000 12,672 0.63
231 36,000 7,138 0.40
2,261 274,500 9,151 0.47
1,002 166,500 6,690 0.26
325 55,314 6,521 0.36
•In terms of highest new business premium (Agency)** Average agents
938 52,500 19,860 0.63
817 54,448 16,679 1.15
2,063 270,000 8,491 0.57
2
4
7
3
1
6
5
89
12
11
10
1
2
3
4
4
5
6
77
8
9
10
New Business Apr – Dec ‘08
(Agency) (Rs. Crore)Agents** Premium per
Agent * (Rs.)Cases per Agent *Rank Rank
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MNYL Focus… Protection Oriented, Longer Tenor Life Insurance
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28
32
0.3DEFERRED ANNUITY
8.4MONEY BACK
UNIT LINKED 54.5
3.4TERM
17.7WHOLE LIFE
PROPORTION OF POLICIES (%, by
number)
PRODUCT TYPETenure (Years)
Age of Insured(Years)
22 34MNYL Average MNYL Average
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26
44
36
3617
16
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ENDOWMENT 11.9 22
As on Dec 31, 2008
HEALTH 3.7 3513
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MNYL – Embedded Value 2007-08
Amount in Rs. Crore
Unwind of discount
Opening EV
Value ofNew
Business
Other adjustment
New Capital Injection
Closing EV
Denotes decrease to EV
Denotes increase to EV
267
102
Operating Variance
22
300
10
1,316
Maintenance Expense Overrun
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Implied NBM is 20.4%
on APE*
*APE – Adjusted Premium Equivalent (First Year Premium adjusted for 10% of Single Premium)
464
206
362
954
Net WorthValue of Inforce business
670
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Economic Assumptions
Sensitivityn For change in risk discount rate by 0.25%, the value of new business would
change by 1.89%
Operating Assumptionsn Operating assumptions like mortality, morbidity and lapses are based on our own
experience and validated with industry / reinsurers experience.
n Expense assumptions are based on our own expense projection model. Basis ourcurrent expansion strategy, our expense break even happens in year FY 11-12
MNYL – Key Assumptions to Embedded Value
Particulars AssumptionsCash/Money Market/TB 6.50%G Secs 8.00%Corporate Bonds 8.95%Equities 13.00%Inflation 6.00%Risk Discount Rate 13.00%Tax rate 14.2% (12.5% plus 10% surcharge
+3% education cess)
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MNYL – Growth Strategy
*Growth rate calculated on Individual Adjusted Premium(Individual Non-Single Premium + 10% of Individual Single Premium)
AFYP Rs. 8,000 Croreby FY 11-12
15 Mn Policyholdersby FY 11-12
200,000 Agentsby FY 11-12
Over 100 offices every year,1,000 offices by FY 11-12
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n MNYL would continue to be an agency led multi-channel distribution company. Keyfocus areas in distribution would be:
Grow agency and rural offices to build large geographic footprintSegment agency to build profitable scaleStrengthen and expand bancassurance and partnership distributionBuild scale in direct sales and exploit telemarketing capabilities
n Launch a new operating model to reach 100 millionlow income, under-serviced households, through
Successful Pilot done in Allahabad and Andhra PradeshActivated 20+ retail distributors in UPMajor tie up done with 2 MFI & 2 NGOsReady to establish 50,000 Point Of Sales by year endInitiated business partnerships with large format retailers including Reliance Retail, 3iInfoTech, Tata Capital to leverage their existing customers and POS relationships.
n Focus on health and retirement product segments to diversify the portfolio and fuelgrowth
n Enhance sales through cross-sell and up-sell to our growing customer base
n Improve MNYL brand awareness to support business expansion throughcomprehensive brand building agenda
MNYL – Growth Strategy
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www.maxhealthcare.in
Max Healthcare [ MHC ]
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Indian Healthcare
Indian Healthcare industry expected to grow at a 15%
CAGR till 2012 to contribute 6.1% of GDP
Key Driversn Key changes related to lifestyle and chronic
disease patternsn Minimally Invasive Surgery, lower ALOS & safer
surgical procedures – encouraging demandn Deeper penetration of diagnostics and
healthcare servicesn Growing middle classn Changing spending patternsn Health Insurancen Medical value travel
Healthcare Industry 2012 – US$ 78.6 billion
n Revenue generated by private hospitalscurrently estimated at US$ 15.5 billion, likely toincrease to US$ 35.9 billion by 2012
n Industry expected to add 1 million beds by 2012– private sector to contribute 89% of these bedsat an investment of US$ 70 billion
Source: Medistat World Market Analysis, 2006; E&Y Report, 2007
Market Size
34 19 137 250
2100
India Brazil China Germany USA
(USD
Bn)
Healthcare Industry 2012 - US$ 78.6 Bn
Bed Revenue, 36%
Health Insurance, 5%
Infrastructure, 14%
Others, 18%
Training & Education, 3%
Pharma and Consumables,
21%
Clinical Trials, 1%
Medical Value Travel, 2%
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Enable retention of patient trafficEnable ‘start-to-finish’ comprehensive, seamless care: Consult and Diagnostics,
Diagnostic tests, surgeries, post-surgical care
MHC – Model
TERTIARYn Max Heart and Vascular Instituten Max Super Speciality Hospital
Heart and VascularNeurosciencesJoint Replacement and OrthopaedicsAesthetics and Reconstructive surgeryOncology
SECONDARY
PRIMARY
n Max Hospitals – 4n Speciality Centres – 2
n Clinics / Implants – 10
Surgery and inpatient facilitiesMother and ChildHigh-end diagnostics: MRI, CTDoctor consultationEye and Dental care
Specialist doctor consultBasic diagnostics like pathology collection
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n Comprehensive world-class healthcare services
n State-of-the-art infrastructure and facilities
n Established brand name with leading specialist doctors
n Trained and anchored resources
n Leadership in key super-specialties in tertiary careCentres of excellence in cardiac, orthopaedics and joint replacement, neurosciences,paediatrics, obstetrics & gynaecology and aesthetic & reconstructive surgery
Organ transplant, oncology, cord blood banking, stem cell research to be added
n Extensive emphasis on medical training and educationDNB (Diplomate of National Board) & fellowship programs
High quality nursing and paramedic care supported by nursing and paramedic college
MHC – Key Differentiators
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Healthcare facilities 8
Physicians 1,200*
Other support staff 3,000
Patient base Over 700,000
Patient transactions Over 160,000 pm
Beds 800
ICU beds 225
OTs 20
Cathlabs 3
MRIs 4
CTs 4
MHC – Key Highlights
*Includes over 500 physicians on Rolls
Fact Sheet Shareholding Pattern
Max India Limited70.1%
Others6.0% Warburg Pincus
20.1%IFC, Washington3.8%
Number of outstanding shares 237,094,548
Both the tertiary care hospitals are NABH accredited Lab facilities at Max Super Speciality Hospital are NABL accredited
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MHC – Key Highlights
The business has turned Cash Positive …
*Average revenue per occupied bed day has been calculated on inpatient revenue
ALOS – 3.3 days
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MHC – Second Phase of Expansion
n Around 255 bedsn Launch expected by October 2009n Tower specialties – oncology, cardiac
care, orthopaedics, neurosciences andcritical care
Tertiary CareMax Balaji Hospital – Patparganj
Max Hospital – Saket [South Block]
n Around 90 bedsn Launch expected by April 2010n Tower specialty – oncology
n Around 150 beds n Launch expected by April 2010n Cardiac Caren Orthopaedics and Joint replacementn Minimally Invasive Surgeryn Critical Care
National Capital Region
Outside National Capital Region
Tertiary Care Multi-SpecialityMax Hospital – Dehradun
Bed capacity to double to over 1500 beds by 2011
Land already in place for the second phase of expansion
Max Hospital – Greater Noida
n Around 300 Bedsn Launch expected by April 2012
Tertiary Care / Multi-Speciality
Max Hospital – Shalimar Bagh
n Around 300 Bedsn Launch expected by April 2011
Tertiary Care / Multi-Speciality
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MHC – Project Funding
Project CostRs. 1,330 Crore
EquityCapital
Rs. 630 Crore
PreferenceCapital
Rs. 250 Crore
n Max IndiaCurrent – Rs. 166 CroreFuture – Rs. 54 Crore
n Warburg Pincus – Rs. 140 Croren IFC, Washington – Rs. 50 Croren Other Foreign Investors – Rs. 20 Croren To be tied up – Rs. 200 Crore
n Indian Banks and FinancialInstitutions
Current – Rs. 281 CroreFuture (tied-up) – Rs. 74 CroreTo be tied up – Rs. 95 Crore
Debt Funds
Rs. 450 Crore
n IFC, Washington
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Max Neeman Medical International [ MNMI ]
www.neeman-medical.com
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Revenue Mix - Clinical Trials
Phase-IV10%
Phase-III30%
Phase-II40% Phase-I
20%
Indian Clinical Research Industry
Key Driversn Huge patient population base
with therapeutic diversity
n Cost arbitrage
n Huge talent pool
n Data processing infrastructurefor bio-informatics
n Favorable patent regulationsto catalyze exponential growthand improving
Need availability gap in years to come
2001 2005 2010 (Projected)No. of trials 142 600 6,000Investigators 46 250-300 4,000-5,000Trained manpower 200 3,000 50,000
Study Sites Metros only
A class cities, few B class towns
All A class towns, many B and
C class towns
Source: E&Y Report, 2007; Thomson CentreWatch Analysis, 2007
Industry projected to grow to US$ 1.3 billion by 2012...
Indian clinical trials industry - US$ 265 million
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MNMI – Contract Research Organization
n Service offerings include…Project managementMonitoringSite managementData management, includes bio-statistics and report writingClinical trial material supply chain management
n Confirmed order book of Rs. 40 Crore; BD pipeline of Rs. 120 CroreBD efforts focused on medium and small-sized biotech and pharma companies
n Strong operating performance…Continues to be profitableRevenue for the nine months ended Dec’08 more than double to Rs. 10 Crore.Patient retention rate maintained at 98%4 successful US FDA auditsDatabase of 830 GCP/ICH principal investigators
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MNMI – Select List of Clients
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Max Speciality Products [ MSP ]
www.maxindia.com
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Global BOPP IndustryKey Driversn Global flexible packaging industry – US$ 50
bn, of which BOPP Films contribute 70%
n Growth of flexible packaging Industry ~ 15%in India & 7 to 8% Globally
n Competitive advantage of BOPP films overother plastics and traditional products
n Shift from PET to BOPP. (Indian BOPP:PETproducts ratio around 1:2 against 3:1 globally)
n BOPP films in strong demand from consumergoods industries
n Organised retail and changing urban lifestyles to further expand demand for BOPPfilms
n Competitive cost advantage for exportmarkets
BOPP per capita consumption in India lower than
the global average
Source: AMI & Access
Global Per Capita Consumption of BOPP Film
1.9
1.2
0.50.4
0.30.1
0.4
WesternEurope
NorthAmerica
Asia LatinAmerica
EasternEurope
India WorldAverage
KG
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Max Speciality Products is much more than packaging…n Manufacturer of niche (high margin) and high barrier speciality polymer films
n Pioneer in introduction of value added products / technology in India
n Long term relationship with blue chip customers
MSP – Key Differentiators
Commodity Speciality(Preferred)
End UsePackaging,Industrial,
Textiles
Packaging,Lamination
MetallisedFilms Coated Films Foils
Packaging,Lamination,Industrial,
Packaging, Industrial
Lifestyle,Apparels
Our Focus
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MSP – Key Highlights
*9M’FY09 numbers have been annualised by a factor of 0.75 to reflect FY09 numbers.
Track Record of Strong Performance…
n BOPP lines of 29,000 TPA running at 100% utilization
n Return on Capital Employed for the nine months ended December 2008 at 15%
n Third thermal line with a capacity of 10,000 KSM expected to be operational by Mar’09
n Leather finishing foil business to more than triple its capacity to 5000 KSM by Mar’09
n Planning fourth BOPP production line with a capacity of 20,000 TPA in early 2010
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Thank You
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Max India – Management Team
Mr. Analjit Singh
Chairman & Managing
Director
Mr. Analjit Singh has been the driving force behind Max Group’s sustained growth and success since the early 80’s. Mr.
Singh a prominent industrialist is an alumnus of Doon School; University of Delhi, and the Graduate School of
Management, Boston University
Mr. C. V. Raghu
Director – Legal &
Regulatory
Mr. Raghu brings with him a rich and varied experience of 22 years, of which, 14 years have been spent with American
Express Bank. Prior to that, he has worked with Hindustan Lever Limited and CII. He holds a Bachelors Degree in Law
from Faculty of Law, Delhi University.
Ms. Kirti Madhok Sud
Director – Corporate
Support
Ms. Sud brings rich and varied experience of about 27 years in the banking sector with Citibank, ICICI and ANZ
Grindlays; a free lance correspondent for the Economist Magazine Group and an independent business owner with
Amway India. She holds a Bachelors Degree in Economics (Honours) and an MBA from IIM, Ahmedabad.
Mr. Mohit Talwar
Director – Corporate
Development
Mr. Talwar brings rich and varied experience of 28 years with The Oberoi hotels, Bank of Nova Scotia, Grindlays &
Standard Chartered. In his last assignment with Standard Chartered he was responsible for developing strategy,
revenue & economic profit across products. Mr. Talwar is a post-graduate in Arts and Hospitality Management.
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Max India – Management Team
Mr. P. Dwarakanath
Director - Group
Human Capital
Mr. Dwarakanath brings rich and varied experience of 37 years primarily from GSK GlaxoSmithKline Consumer
Healthcare and is currently the non Executive Director of GSK. He has done his Post Graduate diploma in Personnel
Management and Industrial Relations, B.Sc and Bachelor of Law.
Ms. Sujatha Ratnam
Chief Financial
Controller
Ms. Ratnam brings with her over 15 years of rich and varied experience with Jubilant Organosys and Tata Motors and
has expertise in the field of financial restructuring and fund raising. She is a Chartered Accountant.
Mr. V Krishnan
Company Secretary
Mr. V. Krishnan has more than 18 years of rich experience in Corporate Regulatory and Compliance matters and has
been closely involved in establishing joint ventures, mergers & acquisitions and business restructuring of Max Group.
He is a member of the Institute of Company Secretaries of India.
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MNYL – Management Team
Mr. Rajesh Sud –
Managing Director
and CEO
Mr. Sud, a founder member, has been instrumental in establishing MNYL’s distribution footprint across India. Today
MNYLs Agency model is recognized as “best-in-class”. Prior to joining MNYL, he was the CEO & Managing Director of
Esanda Finance Ltd (a financial services subsidiary of ANZ Grindlays Bank)
Mr. Rajit Mehta –
Chief Operating
Officer
Mr. Mehta, a founder member, has led and built the HR function of MNYL and provided overall HR direction in line with
business strategy. He has also played a significant role in managing change / transition agendas both at a functional
and organizational level while facilitating strategic initiatives. Prior to joining MNYL, he was Director - Human Resources
at Bank of America, India
Mr. John Poole
Chief Actuary
Mr. Poole, is both Chief Actuary and Appointed Actuary for MNYL. He has been instrumental in building MNYLs
actuarial capability and implementing best practices. Prior to this assignment, he worked with AMP in various key
management positions including CFO and Actuary
Mr. Sunil Kakar
Senior Director &
Chief Financial Officer
Mr. Kakar joined MNYL in March 2001 and is in charge of Finance, Accounts, Investments and Risk Management.
Under his leadership investment portfolio continues to generate top quartile returns. Prior to joining MNYL, Sunil was
with Bank of America, India as Vice President (CFO)
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ExcellenceHonestyKnowledge
MNYL – Road Map to Becoming India’s Most Admired Life Insurance Company
Key Public Messages
A trusted life insurance specialistCustomer centricFinancially responsible and strongA great place to workAn admired member of the community
VISION Become the most admired Life Insurance Company in India
MISSION
GOALS3 Billion $ in Premiums in 10th yearIRR–20% plus; Dominate MDRT in India; Profitable by FY 11-12
KEY
OBJECTIVES
STRATEGIES
WHAT – Comprehensive suite of products, competitive pricing, extensive distribution, persistency, customer service excellence, profitable portfolios
HOW – Talented People, Professional & Productive Agents, Performance Metrics, Leverage Technology, Teamwork, Customer Centric, Innovative Distribution and Marketing
INITIATIVESWhat-When-Who-How-Cost linkage plans at Departmental and Individual levels
VALUES & BELIEFS OPERATING PRINCIPLES METRICS & STANDARDS
PERFORMANCE MGMT PROCESS
Caring IntegrityTeamwork
Customer comes firstInternational quality standardsDo it right the first timeFact based decisionsBias for result oriented actionFinancial strength & disciplineDirect and open communicationRespect Max & NYLI values & parentageFun at work
InputOutputExternalInternalAbsoluteRatios
GMPR RatingsTEC/TTR – TemplatesPrimary, Shared and ContributoryBalanced scorecardCore, Functional and Leadership Competencies
Part of top quartile new Life Insurance CompaniesNational PlayerBrand of FIRST choiceEmployer of ChoicePrincipal of Choice for Agents
Key DifferentiatorsFinancial Strength & SecurityQuality of agentsFlexible ProductsService ExcellenceFair Terms of Business
US$ 1 = INR 49
42* Conservation Ratio = Renewal Premium for the current period / (First Year+Renewal Premium for the previous period)
MNYL – Key HighlightsKey Business Drivers Unit Quarter Ended Y-o-Y
Growth
Nine months Ended Y-o-Y Growth
Dec-08 Dec-07 Dec-08 Dec-07
a) Sales Value (Annualized first year premium) Rs. Crore 547 478 14% 1,578 1,103 43%
b) Average case size Rs. 17,877 23,230 -23% 19,500 22,427 -13%
c) Case rate per agent per month No. 1.15 1.70 -32% 1.13 1.44 -22%
d) Number of agents No. 72,226 29,904 142%
e) Net agents added No. 13,645 1,330 35,330 4,856
f) Conservation ratio* % 80% 80% 85% 82%
g) Gross written premium income Rs. Crore
First year premium 377 354 6% 1,176 848 39%
Renewal premium 541 318 70% 1,333 726 84%
Single premium 61 92 -34% 194 189 3%
Total 978 764 28% 2,703 1,763 53%
h) Paid up Capital Rs. Crore 1,782 907 96%
i) Individual Policies in force No. 2,416,721 1,500,589 61%
j) Sum insured in force Rs. Crore 93,575 62,600 49%
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MHC – Management Team
Dr. Pervez Ahmed
CEO and Managing
Director
Dr. Ahmed has been an active participant in healthcare related fields especially development of standards of critical
care medicine in New York. Since 1977 he has been involved in academic Medicine at SUNY, Downstate. He has
also been involved in many healthcare activities in India dating back to 1980. Dr. Pervez Ahmed, MBBS from AFMC,
Pune, has completed Residency in Internal Medicine and Fellow-ship in Cardiology in New York. He is Board certified
in Internal and Cardiovascular disease and a Certified Medical Director.
Mr. Arvind Kakar
Vice President Finance
Mr. Kakar is a Chartered Accountant with over 18 years of experience in service industries and having a high focus in
the areas of financial services and healthcare. He has been associated with the Max group since 2000.
Mr. Sanjay Rai
Director Marketing &
Customer Management
Mr. Rai brings with him more than 28 years experience in Sales & Marketing in service and manufacturing industries.
He has earlier worked with The Oberoi group and ITC Limited. He leads and manages various sales channels at Max
Healthcare and is also responsible for Branding, Customer Relationship Management and Direct marketing, PR
function and for service excellence. He is an graduate in Economics from Mumbai University,
Dr. D. P. Saraswat
Regional Director
Dr. Saraswat has rich and varied experience of 36 years including 22 years in the Indian Army where he held Lt. Col.
rank. Thereafter he continued his career with Manipal Hospital as COO & Medical Director. He also held the position
of Head & Professor Dept. of Hospital Administration in Manipal University. He is M.B.B.S from S. N. Medical College,
Agra and MHA from A F M C, Pune.
Dr. Dilpreet Brar
Regional Director
Dr. Brar was associated with the Indraprastha Apollo Hospitals and Hero Honda group of companies prior to joining
Max Healthcare in 2002. She is responsible for business operations of Saket, Panchsheel and Gurgaon Hospitals. Dr.
Brar is a graduate from Govt. Medical College, Patiala. She secured a post graduate diploma in hospital management,
and completed a certificate course in Health Insurance from Indraprastha Apollo hospitals, New Delhi.
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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
Dr. Praveen Chandra
MD, DM,FAPSIC, FACC, FSCAI, FESC
Director – Cardiac Cath Lab
Internationally Renowned Cardiologist.
First to use new devices like Rotarex,Kensey Nash DPD in the country.
Dr. S.K.S. Marya
M.S., DNB, Mch, FICS
Director – Max Institute of Orthopedics & Joint
Replacement
Renowned Joint Replacement Surgeon having 30 years experience.
Pioneered bilateral Hip and Knee Joint replacement.
Author and teacher par excellence.
Dr. Ajaya Nand Jha
MS, FRCS
Director – Max Institute of Neurosciences
Renowned Neurosurgeon with rich and varied experience including
stints with Manchester Royal Infirmary, P.D. Hinduja National Hospital,
Indraprastha Apollo Hospital.
First to use image guided Neurosurgery in the country.
First to use dedicated X-knife (Radiosurgery) and intra-operative MR
with image guidance for Brain Tumour Surgery.
Dr. Arvind Taneja
MD, FAAP
Director, Paediatric Services
Specialised in treating Paediatric Infectious Diseases
Awarded ‘Best Paediatrician’ of Delhi
Winner of several awards. Ex-teacher PGI Chandigarh and AIIMS.
MHC – Key Physicians
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VISIONDeliver world class healthcare with a service focus, by creating an institution committed to the highest standards of medical & service excellence, patient care, scientific knowledge and medical education.
MISSION
GOALS• Profitable without profiteering.• Seamless linkage between secondary and tertiary care.• Innovate to address wider market.
KEY OBJECTIVES
STRATEGIES
WHAT – Medical USP’s ; Best in class ; Comprehensive care ; Convenience & accessibility ; Seamless service ; Patient records ; Consistent and customised care ; Service excellence ; Preventive health ; Caring place to work.
HOW – Train train train ; Partnership with Medical community ; Principal choice for physicians ; Never ending focus on medical and service excellence ; Build lasting customer relationships ; Primary, Secondary and Tertiary care through Co. managed / partnership; No franchising.
VALUES & BELIEFS OPERATING PRINCIPLESMETRICS &
STANDARDSPERFORMANCEMGMT PROCESS
• Create unparalleled standards of Medical & Service Excellence• Care provider of FIRST CHOICE• Principal Choice for Physicians• Ethical Practices • Create National Centre of Excellence for select Super Specialties.• Build towards international ‘reach’ by creating patient confidence through
professional skills, research and technology
• Competence rating• Potential analysis• PSC model• Balanced scorecard• Performance / Risk linked
reward.
• Caring • Excellence• Integrity
- Personal- Professional
• Openness/Transparency• Teamwork• Knowledge • Win-win partnerships
• Courtesy & Caring always• Customer comes first• Do it right first time• International image standards• Efficient process management• Direct & open communications • Create trust• Fun at work• Compliance
• ISO 9001 : 2000• JCIA Accreditation• Credentialing / Grant
of privileges• Employee productivity• Employee Engagement survey• Service Dashboard - Sparsh• NABH Accreditation• NABL certified Lab system.
INITIATIVES• WHAT- HOW - WHEN - COST - LINKAGE• Shared responsibility with single accountability.• Unique approach through: - International benchmarking. - Walk the Talk - IT Capability- Medical – Management Alignment. - Rehearse rehearse - Cost Efficiency- Train train train. - Mystery customers - Attrition Management
MHC – Vision / MissionBuild TrustPASSIONKey Differentiators
Focused NCR centric delivery – for operational excellenceClose to customer – geographyComprehensiveness of medical services (except organ transplant and radio therapy)Leadership in 5 super-specialties in tertiary care-‘Star’ physicians supported by a group of high quality physiciansEthicsMemorable brand experience-‘Star’ and quality physicians-Infrastructure and equipment-No surprises – cost of care, pricing, medication-Signage-Look – feel – smell - touchInnovation to bring in walk-in customers-Location-Max Health Plan-Other new programs i.e. Golden Years, Life Membership, PrepaidHigh quality nursing and paramedic care supported by nursing and paramedic collegeExtensive emphasis on training
Key Public MessagesMedical ExcellenceService Excellence – Total ExperienceIn your community - near youHigh-end tertiary care in Private
sectorComprehensivenessReferral system – National & International
Value for moneyPartnering with medical communityCaring place to work Corporate Social Responsibility
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Express Healthcare Excellence Awards (2007 – 08)
MHC – Accreditations and Awards
“Innovative Marketing Practices”
“Best Managed Healthcare Program (Health Insurance/TPA)”
First in North India to get NABH on Feb. 6th, 2007
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MHC – Key HighlightsKey Business Drivers Unit
Quarter Ended Y-o-Y Growth
Nine Months Ended Y-o-Y Growth Dec-08 Dec-07 Dec-08 Dec-07
a) Revenue Rs. CroreInpatient Revenue 80.4 80.2 0% 245.4 220.7 11%Outpatient Revenue 22.6 17.8 27% 68.7 51.4 34%Total 103.0 98.0 5% 314.1 272.1 15%b) ProfitabilityContribution Margin Rs. Crore 59.5 50.6 18% 177.4 143.5 24%Contribution (%) % 57.8% 51.6% 56.5% 52.7%EBITDA Rs. Crore 8.4 5.2 62% 23.6 13.0 82%EBITDA (%) % 8.2% 5.3% 7.5% 4.8%Cash Profit Rs. Crore 1.7 (1.7) 1.8 (11.5)c) Patient Transactions No.Number of Procedures- Cardiac Care 1,593 1,911 -17% 5,406 5,583 -3%- Orthopaedics 514 476 8% 1,619 1,513 7%- Neurosciences 249 187 33% 662 552 20%- Obstetrics & Gynaecology 1,230 1,095 12% 3,633 3,118 17%- Others 2,289 2,098 9% 7,154 6,095 17%Medical Admissions 6,616 6,385 4% 20,010 17,713 13%Outpatient Registrations 444,344 407,397 9% 1,416,965 1,169,734 21%d) Average Operational Beds No. 714 674 6% 709 657 8%e) Average Occupancy % 62.9% 67.9% 65.8% 66.0%f) Average Length of Stay No. 3.3 3.5 3.3 3.4 g) Average Revenue per Occupied Bed Day Rs. 19,464 19,034 2% 19,119 18,503 3%
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MAX HEART & VASCULAR INSTITUTE(December 2004)n 200 patient bedsn 3 OTs, 2 Cardiac Catheterization Labsn Post Surgery Critical Care Unitn High Dependency Unitn Apex and Advanced Coronary Caren Exclusive well equipped ‘Observation Bay’ and
‘Post Cath. Recovery’n Nuclear Diagnostic Services with Variable Angle
Dual Head Gamma Cameran Centralized Emergency Command with
Advanced Cardiac Life Support Ambulances andAir Evacuation Service
n High-end General Surgery
MAX SUPER SPECIALITY HOSPITAL(May 2006)n 191 beds (including 63 critical care beds)n 7 OTs, 20 Consult Chambersn Tower Specialties – Orthopaedics, Neuro
Sciences, Obstetrics & Gynaecology, Paediatricsand Aesthetic & Reconstructive Surgery
n Brain Suite (first in Asia) and Intra Operative MRIn DSA Lab (for Neuro Sciences)n Emergency Servicesn High end Radiology facilities with 64 slice Cardiac
CT
MHC Tertiary Care Facility, Saket [South Delhi]
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PITAMPURA(February 2002)(North Delhi)
90 inpatient beds2 OTsLithotripsyMother and child careNon-invasive cardiologyPlastic and reconstructive surgeryPhysiotherapyFull range diagnosticsPHP, OPD and Dentistry
PATPARGANJ(May 2005)(East Delhi)
154 inpatient beds3 OTsMother and child careOrthopaedicsGeneral surgeryCritical care including dialysisNon-invasive cardiology (incl. cardiac catheterization lab)ENT, ophthalmologyOther allied specialties
MHC Secondary Care Facility [ Delhi ]
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MHC Secondary Care Facility [ Suburb of Delhi ]
NOIDA(August 2002)
33 inpatient beds2 OTsMother and child careNon-invasive cardiologyLaparoscopic surgeryOrthopaedicsENT, ophthalmologyUrology and nephrologyFull range diagnosticsPHP, OPD and Dentistry
GURGAON(July 2007)
102 inpatient beds 3 OTsOphthalmology (anterior and posterior)Woman and child (including infertility)Medical & surgical intensive careOrthopaedicsNephrology and urologyAesthetic and reconstructive surgeriesGeneral and minimally invasive surgeriesPHP and OPD
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MHC Speciality Centres – Panchsheel [South Delhi]
OPTHALMOLOGY AND DENTAL CARE(November 2005)
Lasik, OPD and diagnosticsDental – 3 chambersSupport services and offices
SPECIALIST CONSULTS AND HIGH-END DIAGNOSTICS (August 2006)
GP and specialist consultsDiagnosticsNeurology (EEG and EMG)Preventive health and chronic carePhysiotherapyMinor procedures and emergenciesIVF
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MSP – Performance Snapshot
Key Business Drivers Unit Quarter EndedY-o-Y
Growth
Nine Months EndedY-o-Y
Growth
Dec-08 Dec-07 Dec-08 Dec-07
a) Sales Quantity - BOPP Tons 7,155 6,655 7% 20,988 16,749 25%
b) Revenue Rs. Crore 80.2 84.0 -5% 285.1 214.4 33%
c) Profitability:
Contribution Margin* Rs. Crore 32.2 32.3 0% 100.9 82.6 22%
% 40.1% 38.5% 35.4% 38.5%
EBITDA Rs. Crore 10.3 13.4 -23% 38.2 32.8 16%
% 12.8% 16.0% 13.4% 15.3%
PBT Rs. Crore 3.5 7.3 -52% 17.9 14.5 23%
% 4.4% 8.7% 6.3% 6.8%
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DisclaimerThis 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
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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
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MAX INDIA LTD.Max House, Okhla, New Delhi – 110 020
Phone: +91 11 26933601-10 Fax: +91 11 26933619Website: www.maxindia.com