will, aim, will likely result, would, believe, may, expect, will continue, anticipate, estimate, intend, plan, contemplate, seek

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1 Fortis Healthcare Ltd. Investor Presentation Q3 FY 2010

2 Safe Harbor Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as will, aim, will likely result, would, believe, may, expect, will continue, anticipate, estimate, intend, plan, contemplate, seek to, future, objective, goal, likely, project, should, potential, will pursue and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Fortis does not undertake any obligation to update forwardlooking statements to reflect events or circumstances after the date thereof. Fortis Healthcare Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a rights issue of its equity shares with warrants and to file a Draft Letter of Offer with SEBI. This presentation is not and should not be construed as an offer for sale within the United States of any rights, warrants, equity shares or any other security of Fortis Healthcare Limited or as a solicitation of an offer to buy any of such rights, warrants, equity shares or other securities. Securities of Fortis Healthcare Limited, including any offering of its rights, warrants, equity shares or any other security, may not be offered, sold, resold or otherwise transferred within the United States absent registration under U.S securities laws or unless exempt from registration under such laws. The offering of the securities of Fortis Healthcare Limited described in this advertisement has not been and will not be registered under U.S securities laws, and accordingly, any offer or sale of these securities may be made only in a transaction exempt from registration. 2

3 Agenda Highlights of the Quarter Operating Parameters Hospital Performances Q&A 3

4 Highlights of the quarter The acquisition of 10 Wockhardt s hospitals (including 2 hospitals in project stages), completed on 17 th December. Ties up for management of 175 bedded MK Hospital Bhiwani, Haryana 13 hospitals in the network recorded all time high revenues Malar and Amritsar Hospital grew sequentially over the 8 th quarter Fortis Escorts Delhi grew sequentially over the 6th quarter Noida, Vasant Kunj and Jaipur grew sequentially over the 4 th quarter Launched a new clinic at Fortis La Femme dedicated towards foetal medicine Launched Cancer care clinic named Cancure at Vashi, in association with Dr. Suresh Advani Kicked-off cardiac surgery programme at Clinique Darne and also launched a comprehensive mother and child care programme Construction completed for Oncology Block at Noida. Operations commence from ensuing quarter 4

5 Operating Highlights Financial Information: Network Operating Revenues: Q3 Rs. 299 Cr. (+59%); 9M Rs. 808 Cr. (+51%) Consolidated Operating Revenue: Q3 Rs. 232 Cr. (+44%); 9M Rs. 608 Cr. (+33%) Consolidated Operating EBITDA: Q3 Rs Cr. (+43%); 9M Rs Cr. (+56%) Net Profit for the quarter stood at Rs Cr., +330% over corresponding period EPS for the quarter grows from Re / share to Re / share Fortis Escorts Delhi achieved highest ever revenues of Rs. 70 Cr. for a quarter Fortis Escorts Delhi (+28%), Noida (+30%), Malar (+112%), Faridabad (+35%), Vasant Kunj (+44%), Jaipur (+85%) and La Femme (+27%) also grew smartly Revenues from Cardiac, Ortho, Neuro, Renal Sciences, Oncology and Gastroenterology grew by 36%, 19%, 93%, 28%, 44% & 50% respectively Observed 98% increase in Neuro Surgery procedures over the corresponding quarter lead by Noida, Faridabad, Jaipur, Vasant Kunj & Malar 5

6 Update on Wockhardt acquisition Business transfer completed effective w.e.f 17 th Dec 2009 Transition of ~3,200 employees and consultants to Fortis IT platform integration completed Wockhardt Hospital, Kolkata* Senior management team strengthened in the areas of finance and projects 414 bedded Kolkata project and Mulund hospital s expansion work started Wockhardt Hospital, Mulund, Mumbai 6

7 Brand Transition 7

8 Combined Business Presence Pan India Escorts, Amritsar (2006) Sadbhavna Medical & Heart Institute, Patiala (2006) Fortis City Centre (2006) Fortis Mohali (2001) Fortis MK Hospital, Bhiwani (2010) Kalyani, Gurgaon (2006) Escorts, Faridabad Ravindera Cath Lab, Hisar Fortis Escorts Jaipur (2006) Goyal Hospital, Jodhpur (2006) Wockhardt, Mulund (2009) Wockhardt, Kalyan (2009) Fortis Modi Hospital, Kota (2006) SL Raheja (Mumbai) (2010) HHPL (Mumbai) (2007) Arneja Hospital, Nagpur(2006) Fortis Malar (Chennai) 2008 Wockhardt, Nagarbhavi, Bengaluru (2009) Wockhardt, Yashwant Pura, Bengaluru (2009) Wockhardt, Cunningham Road, Bengaluru (2009) Wockhardt, CH Road, Bengaluru (2009) Wockhardt, BG Road, Bengaluru (2009) Fortis, RM Hospital, Bengaluru (2009) Kamayani, Agra (2006) Saraswati Heart Care, Allahabad (2006) Fortis Noida (2004) Fortis Shalimar Bagh (2010) International Projects Jessa Ram (2003) Escorts-Amiri Diagnostic Fortis Gurgaon Heart Center, Afghanistan (FY2006) La Femme (2005) Mauritius (FY2009) Vasant Kunj (2006) ISIC, Vasant Kunj (2006) Yashoda Hospital, Ghaziabad (2006) Escorts-Delhi (2006) Wockhardt Sarat Bose Road, Kolkata (2009) Wockhardt Rashbehari Avenue, Kolkata (2009) Wockhardt Hospital, (Anandpur) Kolkata (2009) Escorts-Raipur (2006) Birla Institute MRC, Gwalior (2006) GNRC, Guwahati (2009) Fortis Wockhardt Total Particulars No. Capacity No. Capacity No. Capacity Greenfield Brownfield 6 1, , ,515 Managed 8 1, ,318 HCC s/sc s Projects 5 1, ,734 Total 35 4, , ,609 8

9 No. of Procedures Cardiac % Ortho +28% 612 3,774 4,988 1,560 2,095 1,288 1, CTVS & Pediatrics PTCA CAG Others Knee Replacements THR & Others % 15, % 353 7,641 Neuro Dialysis Q3 FY 09 Q3 FY 10 9

10 Performance Highlights Consolidated: FHL and Subsidiaries Network: FHL, Subsidiaries, Associates and O&M Hospitals 10

11 Snapshot Financial Performance Q3FY % Rs. in Cr. Q3FY % Q3 FY 10 Consolidated Operating Revenue -Rs Cr 44% Operating EBITDA -Rs Cr 43% Net Profit -Rs Cr 330% Q3FY10 -Network Revenue -Rs Cr. 59% Statutory Q3FY09 Q3FY Occupancy 70% 74% ARPOB (Annualized - Rs. Lakhs) ALOS (Days) M FY10 Consolidated Operating Revenue -Rs Cr. 33% 0 Consolidated Network Operating EBITDA -Rs Cr. 56% Net Profit -Rs Cr. 330% 9M FY10 -Network Revenue -Rs Cr. 49% Operating Revenues 11

12 Operating Revenue and PAT Consecutive positive returns Rs. in Cr Revenues 44% PAT 330% Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Operating Revenues PAT *PAT above is excluding exceptional items of gain of Rs Cr. in Q2FY09 and our share of loss of Rs. 1.4 Cr in Malar hospital in Q4FY

13 Summary Consolidated Profit and Loss Q3 FY10 Particulars Q3 FY10 (Rs. Cr.) % Q3 FY09 (Rs. Cr.) % Q-o-Q Growth Operating Revenue % % 44.3% Other Income # % % 50.8% Total Income % Direct Costs % % 39.0% Employee Costs % % 23.3% Other Costs % % 66.0% EBITDA % % 44.5% Finance Costs % % -38.8% Depreciation & Amortization % % 16.2% PAT % % 329.6% EPS for the quarter (Rs.) #Other income includes interest income and miscellaneous income 13

14 Summary Consolidated Profit and Loss 9MFY10 Particulars 9MFY10 (Rs. Cr.) (%) 9MFY09 (Rs. Cr.) (%) Growth (%) Operating Revenue % % 32.9% Other Income # % % -35.7% Total Income % Direct Costs % % 27.7% Employee Costs % % 18.4% Other Costs % % 38.8% EBITDA % % 30.1% Finance Costs % % -27.0% Depreciation & Amortization % % 2.8% PAT* % % 330.2% EPS for the period #Other income includes interest income and miscellaneous income * PAT is arrived after excluding exceptional items 14

15 Hospital Performances 15

16 Hospital wise Revenue & EBITDA 112% Rs. In Cr. 85% % % 44% 35% 18% 27% % % 19% % 22% 15% 25% 13% 27% 14% 15% % 18% -6% 20% 28% 30% 7% 24% Delhi Mohali Noida Vasant Kunj Faridabad Malar Jaipur Amritsar La Femme 16 Q3 FY09 Q3 FY10

17 Specialty Mix 9MFY10 Renal, 4% Gastro, 2% Onco, 2% Neuro, 5% MSH, 17% Ortho, 8% OPD, 10% Other, 19% Pulmo, 2% Gynae, 3% Cardiac, 43% Others, 4% Focus on key specialties Cardiac, Neuro, Ortho, Renal & Onco to continue 17

18 Greenfield Hospitals : Planned No. Location No. of Beds Area & Land Ownership Expected date of commencement 1. Shalimar Bagh, NCR Acres. Owned Q Kolkata, West Bengal 414 Owned 294,931 Sq ft Q Gurgaon, NCR Acres, Owned Q Peenya, Bengaluru 120 B. Lease ~70,000 Sq ft Q Ludhiana 2, Punjab 100 1,00,000 sq ft. B. Lease Q Ludhiana 1, Punjab 200 1,55,000 sq. ft., B. Lease Q Ahmedabad, Gujarat 200 1,55,000 sq. ft., B. Lease Q2 13 Total 1,834 18

19 Thank You 19