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Max India Limited
Investor PresentationJuly 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 ”
3
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
4
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 around 800 Beds
Clinical Research – 100% owned. 175+ active sites
Speciality Packaging – capacity of 29,000 TPA. 100% utilization
Health Insurance – JV with BUPA Finance Plc, UK
n 3.5 Million Customers… 20,000 Employees… 84,000 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
5
Consolidated Financial Snapshot(Rs. Crore)
1,111
1,994
3,611
4,891
* Losses have increased on account of significant expansion undertaken in the life insurance business.
Details FY09 FY08Gwth.
(%)
Operating Revenue 4,508 3,244 39%
Investment and Other Income 383 367 4%
Total Revenue 4,891 3,611 35%
Profit/(Loss) After Tax* (333) (60) -
Net Worth 1,312 1,537 -15%
Preference Shares 250 250 -
Loans Funds 347 552 -37%
Fixed Assets (Net Block) 930 718 30%
Treasury Corpus 413 1,261 -67%
Life Insurance Investments (AUM) 5,405 3,575 51%
6
FDI –Warburg Pincus12.8%
Max India – Shareholding
FII – Warburg Pincus8.7%
FII – Others24.8%
Others16.0%
Number of Outstanding Shares – 232,356,621
Promoter Group –Analjit Singh
33.3%
As on Jun 30, 2009
FDI – IFC4.4%
7
n Joint-venture with BUPA Finance Plc., UK, world leader of highest
pedigree in this space
n Management team in place
n Currently in the process of seeking regulatory approvals
n Initial capital of Rs. 100 Crore to be infused
Max India to foray into Health Insurance…
8
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 Capital Investment of Rs. 1,782 Crore
Max New York Life Insurance [ MNYL ]
10
India’s Life Insurance Industry has shown strong growth till FY08
Growth driven by…n Strong GDP growth (Average of 8.9% since last four years)
n Low Life insurance penetration (4.6% of GDP as against world average of 7.5%)
n Aggressive distribution expansion by private players (Over 6000 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)Source: IRDA website
11
Industry growth rate moderated in FY09
Source: IRDA website
Pvt. Players 1%
MNYL 22%
LIC -22%
MNYL improved its market share to 6% in FY09 from 5% in FY08
12
Market PositionInsurance Sales (Rs. Crore)
Source: Insurance Regulatory & Development Authority, Adjusted to include only 10% of Single PremiumAll Others include: Kotak, Aviva, Met Life, Shriram, Bharti AXA, Sahara, IDBI Fortis, Future Generali, Canara HSBC OBC, Aegon Religare, DLF Pramerica
and Star Union Dai-ichi
CompanyIndividual New Business
PremiumIndividual Policies
ICICI Prudential 5,146 2,638
Bajaj Allianz
2,892 937
HDFC Standard Life
1,595 1,207Max New York Life
2,443 1,383
Canara HSBC OBCING Life
3,777 2,590Reliance Life
3,849
36
All Others
292
1,867Total Private Life Insurers 26,876 15,007
MS of Private Players (%) 57 29
5
2,310 1,074
SBI Life
958 698
7
Tata AIG
358637
(FY 2008-09)
285282243
184
237
329
76
2,231
50
198
108
3
72
(Apr-May’09)(‘000)
(FY 2008-09)
22694
156
198
204
8
1601494
31
5
82
92
41
2,977 2,219
Birla Sunlife
217 233
(Apr-May’09)
13
n Multi-channel distribution strategyHighly productive agency model (Over double the average productivity ofprivate players)Strong non-agency relationships contributing to over 35% of sales in FY 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 82% in FY 08-09… amongst best in industry
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 Vijayn Grant of US$ 400K from International Labour Organization (ILO) for Max Vijayn 7th best company to work for in India by Mercer Business Today Surveyn CIO 100 Award for innovation in technology implementationn CII Business Excellence commendation for “Strong Commitment to Excel”n Selected to the Elite group of ‘Super Brands’ in India for
branding effortsn Ranked 2nd in BT-Cirrus Newsmakers Survey of most written about private life
insurance company in the median Featured in Top 50 Best Companies to Work for – 2009 by ‘Great Place to
Work’n Outlook Money ranked MNYL # 1 in Slow, Medium and Quick fund category
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
719 78,000 9,173 0.67
3,293 290,000 9,204 0.47
1,591 80,000 21,974 0.71
427 50,000 8,203 0.25
1,786 149,613 8,919 0.66
478 60,000 7,062 0.40
1,588 166,000 9,623 0.54
1,271 207,000 6,021 0.28
295 38,000 6,712 0.38
•In terms of highest new business premium (Agency)** Average agents
648 45,000 13,545 0.57
1,053 78,827 15,232 1.04
2,455 250,000 8,180 0.56
2
1
6
7
3
9
4
510
11
12
8
1
2
3
4
5
6
7
89
10
11
12
New Business FY 2008-09
(Agency) (Rs. Crore)Agents** Premium per
Agent * (Rs.)Cases per Agent *Rank Rank
16
MNYL Focus… Protection Oriented, Longer Tenor Life Insurance
34
28
33
1DEFERRED ANNUITY
8MONEY BACK
UNIT LINKED 54
3TERM
18WHOLE LIFE
PROPORTION OF POLICIES (%, by
number)
PRODUCT TYPETenure (Years)
Age of Insured(Years)
21 34MNYL Average MNYL Average
15
24
43
34
3616
14
42
ENDOWMENT 12 22
As on Mar 31, 2009
HEALTH 4 3613
17
Other Operating Variance
MNYL – Embedded Value 2008-09
Amount in Rs. Crore
Unwind of discount
Opening EV
Value ofNew
BusinessNew Capital
Injection
Closing EV
Denotes decrease to EV
Denotes increase to EV
312
190
Market Value
Movement
44750
9
2,284
CostOverrun
392
Implied NBM is 21.0% on APE*
(21.8% in 2007-08)
954
362
767
1,517
Net Worth
Value of Inforce business
1,316
Other Adjustments
55
*APE – Annualized First Year Premium adjusted for 10% of Single Premium and 50% of limited pay products
18
Economic Assumptions
Sensitivityn For change in risk discount rate by 0.5%, the value of new business would change
by 4.9%
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 5.50%G Secs 7.00%Corporate Bonds 8.50%Equities 13.00%Inflation 5.00%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)
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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 30+ 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.Peerless signed up to distribute Max Vijay – encouraging early results
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: FICCI & E&Y Report, 2007
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 3,100
Patient base Around 750,000
Patient transactions Over 160,000 pm
Beds Around 800
ICU beds 230
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
Max Balaji Hospital – Patparganj
Max Hospital – Shalimar Bagh
Max Hospital – South Block , Saket
Max Hospital – Dehradunn Tertiary Care facility
n Around 260 beds
n Launch expected by October 2009
n Tower specialities include – Oncology, Cardiac Care, Orthopaedics, Neurosciences and Critical care
n Multispecialty services
n Around 300 beds
n First phase Launch expected by April 2011
n Tower specialities -Interventional Cardiology, Cardio thoracic surgeries, Neurosciences, Trauma & critical care.
n Tertiary Care facility
n Around 90 beds
n Launch expected by April 2010
n Tower specialty - Oncology
n Multi-specialty services
n Around 150 beds
n Launch by April 2010
n Tower specialty includes - Emergency and Trauma care, Non-invasive and Invasive cardiology, Cardio-thoracic surgery, Joint replacement and Orthopaedics, Minimally Invasive Surgery, Neurosciences and related support services.
Max Hospital – Greater Noida
NCR Region Outside of NCR Region
Max Hospital – Mohali
n Tertiary Care facility
n Around 300 beds
n First phase Launch expected by April 2011
n Tower specialty includes – Oncology, Cardiac Services & Trauma Services
Max Hospital – Bathinda
n Tertiary Care facility
n Around 300 beds
n First phase Launch expected by April 2011.
n Tower specialty includes – Oncology, Cardiac Services.
n Multispecialty services
n Around 300 beds
n Launch expected by April 2012
n Tower specialities neurosciences, trauma and critical care, urology, interventional cardiology and cardio thoracic.
Land already in place for the Second Phase of expansion
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MHC – Funding Structure
Project CostRs. 981Crore
EquityCapital
Rs. 376 Crore
PreferenceCapital
Rs. 250 Crore
n Max IndiaCurrent – Rs. 166 Crore
n Warburg Pincus – Rs. 140 Croren IFC, Washington – Rs. 50 Croren Other Foreign Investors – Rs. 20 Crore
n Indian Banks and FinancialInstitutions
Current – Rs. 297 CroreFuture (tied-up) – Rs. 58 Crore
Debt Funds
Rs. 355 Crore
n IFC, Washington
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Max Neeman Medical International [ MNMI ]
www.neeman-medical.com
30
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 improvingNeed availability gap in years to come
Source: FICCI E&Y Report, 2007
Industry projected to grow to US$ 1.3 billion by 2012...
Indian clinical trials industry - US$ 200 million in 2006
31
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 CroreBD efforts focused on medium and small-sized biotech and pharma companies
n Strong operating performance…Continues to be profitableRevenue for the FY09 over Rs. 14 Crore, grows 29% year-on-year.Patient retention rate maintained at 98%4 successful US FDA auditsDatabase of over 800 GCP/ICH principal investigators
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MNMI – Select List of Clients
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Max Speciality Products [ MSP ]
www.maxindia.com
3434
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
35
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
36
MSP – Key Highlights
Track Record of Strong Performance…
n BOPP lines of 29,000 TPA running at 100% utilization
n Fourth BOPP line with capacity of 20,000 TPA, expected to be operational by 2010 end
n Return on Capital Employed for FY09 at 15%
n Third thermal line planned with a capacity of 10,000 KSM
n Leather finishing foil business to more than triple its capacity to 5000 KSM by Q2’FY10
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Thank You
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Max India – Management TeamMr. Analjit SinghChairman & Managing Director
Mr. Analjit Singh has been the driving force behind Max Group’s sustained growth and success since the early80’s. Mr. Singh a prominent industrialist is an alumnus of Doon School; University of Delhi, and the GraduateSchool of Management, Boston University
Mr. Anuroop (Tony) SinghVice Chairman
Mr. Anuropp (Tony) Singh was CEO & Managing Director of MNYL since its inception in 2000. In his previousassignments he worked as Country Head – India and Regional Head – Consumer Banking for ANZ GrindlaysBank; Country General Manager for retail banking at Bank of America and various senior positions with AmericanExpress
Mr. C. V. RaghuDirector – Legal & Regulatory
Mr. Raghu brings with him a rich and varied experience of 22 years, of which, 14 years have been spent withAmerican Express Bank. Prior to that, he has worked with Hindustan Lever Limited and CII. He holds a BachelorsDegree in Law from Faculty of Law, Delhi University.
Mr. Mohit TalwarDirector – 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 developingstrategy, revenue & economic profit across products. Mr. Talwar is a post-graduate in Arts and HospitalityManagement.
Mr. P. DwarakanathDirector - Group Human Capital
Mr. Dwarakanath brings rich and varied experience of 37 years primarily from GSK GlaxoSmithKline ConsumerHealthcare and is currently the non Executive Director of GSK. He has done his Post Graduate diploma inPersonnel Management and Industrial Relations, B.Sc and Bachelor of Law.
Ms. Sujatha RatnamChief Financial Controller
Ms. Ratnam brings with her over 15 years of rich and varied experience with Jubilant Organosys and Tata Motorsand has expertise in the field of financial restructuring and fund raising. She is a Chartered Accountant.
Mr. V KrishnanCompany Secretary
Mr. V. Krishnan has more than 18 years of rich experience in Corporate Regulatory and Compliance matters andhas been closely involved in establishing joint ventures, mergers & acquisitions and business restructuring of MaxGroup. 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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ExcellenceHonestyKnowledgeCaringIntegrityTeamwork
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
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
INITIATIVES What-When-Who-How-Cost linkage plans at Departmental and Individual levels
VALUES & BELIEFS OPERATING PRINCIPLES METRICS & STANDARDS
PERFORMANCE MGMT PROCESSCustomer comes first
International 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 newLife Insurance CompaniesNational PlayerBrand of FIRST choiceEmployer of ChoicePrincipal of Choice for AgentsKey Differentiators
Financial Strength & SecurityQuality of agentsFlexible ProductsService ExcellenceFair Terms of Business
41* Conservation Ratio = Renewal Premium for the current period / (First Year+Renewal Premium for the previous year)
Key Business Drivers Unit Year Ended Y-o-Y Growth Mar-09 Mar-08
a) Sales Value (Annualized first year premium) Rs. Crore 2,096 1,676 25%
b) Average case size Rs. 19,172 21,923 -13%
c) Case rate per agent per month No. 1.05 1.46 -28%
d) Number of agents No. 84,355 36,896 129%
e) Net agents added No. 47,459 11,848
f) Conservation ratio* % 82% 83%
g) Gross written premium income Rs. Crore
First year premium 1,594 1,326 20%
Renewal premium 2,014 1,117 80%
Single premium 249 272 -8%
Total 3,857 2,715 42%
h) Paid up Capital Rs. Crore 1,782 1,032 73%
i) Individual Policies in force No. 2,578,476 1,750,725 47%
j) Sum insured in force Rs. Crore 93,593 66,620 40%
MNYL – Key Highlights
42
MHC – Management Team
Dr. Pervez AhmedCEO and Managing Director
Dr. Ahmed has been an active participant in healthcare related fields especially development of standards of criticalcare medicine in New York. Since 1977 he has been involved in academic Medicine at SUNY, Downstate. He hasalso 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 certifiedin Internal and Cardiovascular disease and a Certified Medical Director.
Mr. Arvind KakarVice President Finance
Mr. Kakar is a Chartered Accountant with over 18 years of experience in service industries and having a high focus inthe areas of financial services and healthcare. He has been associated with the Max group since 2000.
Mr. Sanjay RaiDirector 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 MaxHealthcare and is also responsible for Branding, Customer Relationship Management and Direct marketing, PRfunction and for service excellence. He is an graduate in Economics from Mumbai University,
Mr. Surajit BanerjeeDirector Human Resource
Mr. Banerjee has over 23 years experience in Human resource and worked with reputed organizations like Spice Jet,Hindustan Lever, East India Hotels, Reckitt Bencksier Limited, Bharti Cellular etc. He is an post graduate in personnelmanagement and industrial relations from XLRI.
Dr. D. P. SaraswatRegional 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 positionof 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 BrarRegional Director
Dr. Brar was associated with the Indraprastha Apollo Hospitals and Hero Honda group of companies prior to joiningMax 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. Anurag Krishna
MS, MCh., FAMS
Director, Paediatrics and Paediatric Surgery
Over 20 years of experience in Paediatric surgery including complex congenital
malformations
Published over 50 scientific papers in leading national and international journals
Has served as Member of the Board of Management of Sir Ganga Ram Hospital.
MHC – Key Physicians
44
VISIONDeliver international class healthcare with a total service focus, by creating an institution committed to the highest standards of medical & service excellence, patient care, scientific knowledge, research and medical education.
MISSION
GOALS • Profitable without profiteering.• Seamless linkage between secondary and tertiary care.
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 ; No franchising.
VALUES & BELIEFS OPERATING PRINCIPLESMETRICS &
STANDARDSPERFORMANCEMGMT PROCESS
• Create exceptional standards of Medical & Service Excellence• Care provider of FIRST CHOICE• Principal Choice for Physicians• Ethical Practices • Create International Centre of Excellence for select Super Specialties.• Safety – Patient, Customer, Staff
• Competence rating• Potential analysis• PSC model• Balanced scorecard• Performance / Risk linked
reward.
• Caring • Excellence• Integrity• - Personal• - Professional • Accountability• Openness/Transparency• Teamwork• Win-win partnerships
• Courtesy & Caring always• Customer comes first• Do it right first time• International image standards• Direct & open communications • Create trust• Compliance• Fun at work• Reward & Recognition
• JCIA Accreditation • ISO 9001 : 2000• Integrated Management System• Credentialing / Grant of privileges• Employee productivity• Employee Engagement survey• Service Dashboard - Sparsh• NABH/NABL Accreditation• Adverse event Measurement.
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 excellenceLeadership 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 - touchHigh quality nursing and paramedic care supported by nursing and paramedic collegeTechnology and IT
Key Public MessagesMedical ExcellenceService Excellence – Total ExperienceIn your community - near youHigh-end tertiary care in Private
sectorComprehensivenessReferral system – National &
InternationalValue for moneyCorporate 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 for MHVI & MSSH
ISO 14001:2004 at Pitampura
ISO 9001:2008 Recertification atMax Heart & Vascular Institute,Noida, Pitampura, PanchsheelPark & Home Office
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Max Healthcare (MHC)
Key Business Drivers UnitYear Ended
Growth (%)Mar-09 Mar-08a) Revenue Rs. Crore
Inpatient Revenue 329.0 301.5 9%Outpatient Revenue 93.6 71.0 32%Total 422.6 372.5 13%
b) ProfitabilityContribution Margin Rs. Crore 238.9 197.7 21%Contribution (%) % 56.5% 53.1%EBITDA Rs. Crore 28.7 19.6 46%EBITDA (%) % 6.8% 5.3%Cash Profit Rs. Crore 1.0 (11.8) 108%
c) Patient Transactions No.Number of Procedures- Cardiac Care 7,437 7,648 -3%
- Orthopaedics 2,153 2,004 7%- Neurosciences 874 657 33%- Obstetrics & Gynaecology 4,861 4,171 17%- Others 9,669 8,214 18%Medical Admissions 26,109 23,838 10%Outpatient Registrations 1,899,880 1,592,804 19%
d) Average Operational Beds No. 712 662 8%e) Average Occupancy % 65.1% 65.8%f) Average Length of Stay No. 3.3 3.4 g) Average Revenue per Occupied Bed Day Rs. 19,433 18,914 3%
Note: The results presented above are for Max Healthcare’s network of hospital
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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 UnitYear Ended Growth
(%)Mar-09 Mar-08
a) Sales Quantity – BOPP Tons 28,503 23,929 19%
b) Revenue Rs. Crore 370.4 306.0 21%
c) Profitability:
Contribution Margin* Rs. Crore 136.8 119.9 14%
% 36.9% 39.2%
EBITDA Rs. Crore 51.4 49.6 4%
% 13.9% 16.2%
PBT Rs. Crore 24.8 24.5 1%
% 6.7% 8.0%
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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