#1MAX Healthcare Investor Presentation November 2021#2MAX Disclaimer Healthcare This presentation and the accompanying slides (the "presentation") contains selected information about the activities of Max Healthcare Institute Limited's ("Max Healthcare"/"MHIL"/"MHC"/"Company") as at the date of the presentation. 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Certain financial information contained in this presentation reflects aggregated totals of historical MHIL and Radiant Life Care Private Limited ("Radiant"), prior to their merger. These aggregated financial totals are unaudited, unreviewed and do not reflect a pro forma accounting under any accounting standards. As a result, these figures are subject to change and should not be relied upon. Furthermore, certain financial information presented herein differs from that of the audited financials of MHIL, because it includes financial information received from "Partner Healthcare Facilities". As reflected in this presentation, this combined financial information does not meet statutory, regulatory or other audit or similar stipulated requirements of MHIL. The financial information relating to Partner Healthcare Facilities has not been verified by the Company. Accordingly, to that extent, no reliance should be placed on the financial information of such Partner Healthcare Facilities included in this presentation. MHIL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. This presentation contains certain "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to the Company's future business developments, results of operations and financial performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market conditions, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors beyond the control of MHIL, such as Covid-19, that could affect our business and financial performance. The Company and or its representatives do not guarantee that the assumptions underlying such forward-looking statements or management estimates are free from errors nor do they accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. MHIL undertakes no obligation or undertaking to publicly revise any forward-looking statements to reflect future / likely events or circumstances. 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This document does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to purchase securities of the Company or any member of the Group or an inducement to enter into investment activity, in any jurisdiction. In particular, this document and the information contained herein do not constitute or form part of any offer of securities for sale in the United States and are not for publication or distribution in the United States. No securities of the Company have been or will be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to registration or an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended. 2#3MAX Content Healthcare Company Overview Key Growth Drivers 14 04 13 Financial Highlights 26 Appendix 30 3#4MAX Healthcare Company Overview 4#5MAX Healthcare Max Healthcare: India's Second Largest* Hospital Chain NCR Outside NCR 540 BLK 280 Shalimar Bagh 402 378 17 Facilities ~3,400 ~85% Bed capacity Beds in metros Patparganj Vaishali Panchsheel¹ Lajpat Nagar 1,2 Shareholding structure' ** 250 Noida¹ 521 72 Mumbai Saket³ Smart Gurugram 328 Mohali¹,4 220 Bathinda Max Hospitals and medical centres 200 Dehradun 201 39.1% 37.7% 23.2% Top Public investors (>1% shareholding) includes - • SBI Mutual Fund • Smallcap World Fund • HDFC Mutual Fund Canara Robeco Mutual Fund • Motilal Oswal Mutual Fund Veritas Funds Kayak Abhay Soi Public & Others Market Cap*** ~INR 33,000 Cr * Based on publicly available information for listed companies (FY21) | As on Oct 31, 2021 | As on Nov 15, 2021| ** *** (1) Standalone specialty clinics with outpatient and day care services | (2) 2 facilities at Lajpat Nagar | (3) 320 beds in East Block and 201 in West Block | (4) 2 facilities in Mohali 5#6MAX Vision: To be the most well regarded healthcare provider in India Healthcare To be the most well regarded healthcare provider in India committed to the highest standards of clinical excellence and patient care supported by latest technology and cutting edge research Quaternary care facilities Best-in-class clinical outcomes Patient centric approach Patients Global best practices Rewarded by growth Constant pursuit to strengthen management Collaborative approach World class infrastructure State-of-the-art technology Clinicians Well defined clinical protocols Focus on research and academics BEING "WELL REGARDED" Employees MEANS... Investors Strong governance Profitable growth Healthy balance sheet Efficient operations 9#7MAX Healthcare 2000 Journey so far Dr. B L Kapur Memorial Hospital, Rajendra Place (1) Dr. Balabhai Nanavati Hospital, Mumbai(¹) • Radiant-Max Healthcare merger and listing on BSE and NSE • Discontinuation of Max Multi Specialty Centre, Pitampura 2009 2014 2020 2021 • Max Multi Specialty Centre, Pitampura Max Super Specialty Hospital, Patparganj Specialty Centre, • Max Multi Noida Max Multi Specialty Centre, Panchsheel park 2002 2004 2000 (1) Inorganic expansion Max Super Specialty Hospital, (East Block) Saket Max Hospital, Gurugram 2006 Max Super Specialty Hospital, (West Block) Saket 2012 2014 2008 Max Super 2010 Specialty Hospital, Dehradun ⚫ Max Super Specialty Hospital, Bathinda • Max Super Specialty Hospital, Mohali • Max Super Specialty Hospital, Shalimar Bagh Max Multi specialty Hospital, Greater Noida 2016 2018 Max Institute of Cancer Care, Lajpat Nagar Max Medcentre, Lajpat Nagar (Immigration Department) ⚫ Max Super Specialty Hospital, Vaishali (Pushpanjali Crosslay)(1) • Max Smart Super Specialty Hospital, Saket (Saket City) (¹) • Raised INR 1,200 Cr equity through Qualified Institutional Placement (QIP) • Medcentre, Mohali (Immigration Department) • Acquired exclusive rights to aid development of a 500 bed hospital in South Delhi • Secured two prime land parcels in Gurugram with potential to add 1,000 beds Discontinuation of Max Multi specialty Hospital, Greater Noida RADIANT LIFE CARE MAX HEALTHCARE 7#8MAX Healthcare Leading clinically comprehensive hospital chain with excellent research and academics foundation High end quaternary care facilities Annual run rate of Complex procedures performed X Transplants (1) Robotics surgeries Cardiac procedures (2) Neuro surgeries (3) Orthopedic surgeries(4) Oncology surgeries(5) TERNATIONA QUALITY A including 3 JCI accredited State of the art infrastructure Annual 860+ run rate* 1,030+ 39,400+ 8,450+ 23,500+ 10,400+ Robotics PET-CT Radixact - TomoTherapy System S8 Navigation with O-Arm Cath Lab - Artis Zee Pure Intra OP Portable CT Focus on Research and Academics • • • Research: Significant strategic partnerships: Deakin University, Australia and Imperial College London, UK ~1,000 high index journal research publications in last 5 years Several research grants from leading organisations such as CSIR, DBT, DST, INSA, etc. • 80+ on-going clinical research projects *Run rate basis Q2 FY22, given rest of Q1 FY22 was adversely impacted by Covid-19 pandemic Academics: Max Institute of Medical Excellence (MIME) is the education division of MHC for medical education & training • Successfully hosted prestigious Royal college of Physicians exam 4 times ⚫ 20K+ students trained in Life Support programmes in last 5 years • ~10K trainees participate in various training programmes/exams annually • 300+ post graduate students enrolled across 30+ specialties (1) Transplants include kidney, heart, liver, lung, etc. | (2) Includes Cardiac Surgery, Cardiac Paed. Surgery, Vascular Surgery, Angioplasty, Angiography and Other Cardiac Procedures (3) Includes Surgical and Spinal Surgeries | (4) Includes Joints and Other surgeries | (5) Includes Onco Surgical and bone marrow transplant (BMT) 8#9MAX Dominant presence in the most attractive markets (1/2) Healthcare Highest demand supply mismatch, per capita income and insurance penetration leading to Delhi and Mumbai having the highest ARPOB and most profitable hospital markets in India High demand-supply gap in Delhi NCR & Mumbai... ...leading to higher ARPOB 3.6 3.1 2.5 2.2 1.9 0.4 0.4 0.8 0.8 0.6 Quality beds (1) per '000 Population Total beds per '000 Population Delhi NCR Mumbai Chennai 50 45 46 42 33 ARPOB (INR '000) Bengaluru Hyderabad Higher proportion of beds in these cities positions MHC for industry leading ARPOB on an aggregate basis ARPOB (INR '000) 50 43 41 382 30 84% 72% 61% 54% % of operating beds in metro cities Max Healthcare 18% Fortis Apollo (Hospital Business) Hospitals Manipal Hospitals Aster Hospital India (Hospital Business) (1) High-end tertiary/quaternary beds | (2) Reported ARPOB for FY20 | Source: Kotak and E&Y analysis MHC has ~2,700 beds in Delhi NCR & Mumbai - highest proportion compared to peers Large metros have inherent advantages: - High per capita income, high insurance penetration and propensity to pay for high end quaternary care facilities - Availability of senior/ statured clinical talent leading to metros becoming regional hubs - Higher health awareness 6#10MAX Healthcare Dominant presence in the most attractive markets (2/2) Being metro-centric also positions MHC well to capitalise on medical tourism India's foreign medical tourism industry has been growing Delhi NCR captures highest proportion of India's foreign medical tourists Key hubs from domestic hinterland in North and East India feed into Delhi NCR 100% • Srinagar Others 6.4% Others 7 6 5 30% 4.9% 4.9% ° 7% Ludhiana 6.1% 80% 6% Hyderabad (5-7% ] Mumbai (10-12%) Middle East Hisar • Dehradun •Meerut CIS Jaipu 5% 60% Chennai (22-25%) Africa Lucknow Patna Guwahat 4 4% Ranchi 2.9% 7.0 40% 3 2.4% 6.4 3% Iraq 5.0 2 4.3 2% 20% Delhi NCR (42-45%) 1 2.3 1.8 1% Afghanistan %60 0 0% 2014 2015 2016 2017 2018 2019 By Region By Country Note: Map not to scale Foreign tourists for medical purpose (in lacs) % of total tourists Total foreign medical tourist arrivals by region and country (2017) Modern infrastructure and facilities Source: Ministry of tourism, UBS research MHC is well-equipped to serve medical tourists 0 State-of-the-art Availability of senior clinical talent Reputed for tertiary/ quaternary care High global and domestic connectivity medical equipment 10#11MAX Healthcare Operating parameters 50 60 Best in class performance parameters (H1 FY22) 50 50 59 55 ARPOB(1) (INR/OBD) ('000) 44 40 41 41 38 48 ထု 72% Occupancy (%) 78% I 65% 67% 66% 68% 55% 56% Max Healthcare I Apollo Hospitals I (Hospital Business) Fortis Healthcare (Hospital Business) Max Healthcare I Apollo Hospitals Financial parameters 11% 30% 26% Pre-tax ROCE (2) (%) 65% | (Hospital Business) Operating EBITDA per bed (3,4) (INR Lacs) Fortis Healthcare (Hospital Business) Op. EBITDA Margin 15% 18% 27% 15% 9% 18% 12% 8% 16% 57 40 I 30 21 13 21% 14% 10% 25 8% 30 25 4% 2% 36 18 12 27 27 Max Healthcare Apollo Hospitals (Hospital Business) Fortis Healthcare (Hospital Business) Max Healthcare | Apollo Hospitals I (Hospital Business) Fortis Healthcare (Hospital Business) FY20 FY21 H1FY22 (1) ARPOB calculated on gross revenue excluding revenue from Covid-19 vaccinations, non captive Pathology and Pharmacy; ARPOB of Apollo & Fortis is as published in their Q2FY22 Earning's update | (2) Indicative company level ROCE; Apollo ROCE is as published in Q2FY22 earning update for their standalone financial performance. Fortis EBIT computed from group consolidated P&L (3) Operating EBITDA excludes exceptional items and non operating Income and non cash items | (4) Operating EBITDA per bed includes that from vaccinations in absence of information for other players and same is annualised basis occupied beds; Operating EBITDA per bed excludes that from non captive Pathology and Pharmacy; Apollo revenue & EBITDA includes Indraprastha Apollo Delhi. The revenue has been grossed up for adjustment of doctor fees as per the disclocures in the last annual report of FY21 for the calculation of operating EBITDA margin % 11#12MAX Healthcare Distinguished Board and a dynamic management team Distinguished Board of directors Mr. Abhay Soi Chairman and Managing Director Ms. Ananya Tripathi Director, KKR Capstone Experienced and dynamic management team Mr. Yogesh Sareen Col. Binu Sharma Senior Director - Nursing Senior Director & Chief Financial Officer Ms. Vandana Pakle Senior Director - Corporate Affairs Mr. Prashant Singh Director - IT & Chief Information Officer Ms. Harmeen Mehta Chief Digital and Innovation Officer at BT Group Plc Dr. Mradul Kaushik Senior Director - Operations & Planning Mr. Rakesh Kaushik Director - Legal & Regulatory Affairs Mr. Kummamuri Narasimha Murthy Chartered Accountant Col. HS Chehal Senior Director & COO (Cluster 2) Mr. Ashutosh Kumar Jha Director-Growth and M&A Mr. Mahendra Gumanmalji Lodha Chartered accountant & Investment Professional Dr. Sandeep Buddhiraja Group Medical Director Chairman - Institute of Internal Medicine Mr. N Venkatesan Director & Chief Procurement Officer Mr. Michael Neeb Former President of HCA Healthcare Mr. Sanjay Nayar Chairman, KKR India Mr. Anas Wajid Senior Director - Chief Sales and Marketing Officer Dr. Vinita Jha EVP Clinical Directorate Mr. Umesh Gupta Senior Director - HR & Chief People Officer Dr. Abhaya Indrayan Chief Biostatistician, Academics & Research Chairman and MD Non-Executive director Independent director 12#13MAX Healthcare Key Growth Drivers 13#14MAX Healthcare Strong cash generation from operations INR ~378 Cr in H1 FY22 + Headroom to raise debt given current leverage ~0.2 Net Debt/Operating EBITDA* as on Sep 30, 2021 + Demonstrated ability to generate high return on capital employed ~30.0% ROCE for H1 FY22 Long term growth potential *Rolling 12 months EBITDA Multiple avenues for future growth • Optimise Payor mix 1 2 Optimising Existing Infrastructure • Increase utilisation • Focus on tower specialities Strong financial profile to support expansion plans Significant Increase in 3 Bed Capacity (>2x bed capacity in next 5-6 years) • 3.1 Brownfield • Asset light 3.2 and • Greenfield 2,300+ beds addition via brownfield expansion -ROCE accretive Management contracts and long term leases of "build to suit" properties Greenfield hospitals in highly attractive and compelling territories with attractive payback 4 Capital Light Adjacencies • Non-captive pathology - Max Lab Homecare Max@Home 5 Digital Platform Leverage brand, customer loyalty and data to build a digital ecosystem Strong track record of successful M&A and turnaround • Limited competitive intensity • Robust deal pipeline 6 M&A Adequate headroom for M&A even after brownfield capex, driven by strong free cash flows and low leverage བ་ 14#151 MAX Healthcare Strong cash flow and balance sheet to fund future growth plans • Strong and growing cash flow generation • Strong revenue growth driven by increasing health insurance penetration, better patient mix, increasing ARPOB, growth in medical tourism and focus on tower specialties EBITDA growth faster than revenue growth driven by operating leverage • Q2 FY22 EBITDA grew by 12% QoQ, while revenue recorded 8% QoQ growth (excl. Covid-19 vaccination) Redeployment of funds to higher ROCE projects shall also generate incremental cash flows • Net debt of the company reduced from INR 1,989 Cr as on Sep 30, 2020 to INR 259 Cr as on September 30, 2021 Ability to leverage balance sheet • Predictable and growing free cash flow gives meaningful headroom to leverage balance sheet for growth - As on September 30, 2021, Net Debt / Operating EBITDA* stood at 0.2 Massive opportunity to invest incremental capital at attractive rates . of return *Rolling 12 months EBITDA Strong free cash flows and low debt provides adequate headroom to expand through brownfield, greenfield and M&A Leverage brand, network and clinical excellence to deploy capital at extremely attractive returns on capital employed - Q2 FY22 ROCE stood at 32.0% 15#162 MAX Healthcare Bed share Growth opportunity in existing facilities 31% 37% 34% 2% 2% 5% Optimising payor mix 64% 67% 58% • FY20 FY21 H1FY22 Institutional International Self Pay, TPA and Corporate • Push for reduction in institutional business to move towards 15% in the next 3 years, driven by - Steady pace of organic growth in Self Pay, TPA and corporate channels, and Return of International medical tourism, post easing of Covid-19 related international travel restrictions Given that ARPOB for institutional business is ~40% lower than other channels, this subsequent replacement shall unlock incremental 300-400 bps in EBITDA margins 16#173.1 MAX Healthcare Existing valuable land bank to enable addition of 3,300+ beds via brownfield & Greenfield expansion (Amount In INR Crores) # of beds Likely construction commencement by Likely commencement of operations FY22 FY23 FY24 FY25 FY26 FY27 FY28 & onwards Max Shalimar Bagh, Delhi Commenced in Sep 100 H2FY24 8 50 43 11 21 Max Mohali, Punjab 190 Q4FY22 H2FY24 3 80 96 20 Max Smart, 350 Q4FY22 H1FY25 90 180 150 235 29 (Saket Complex) -1 Nanavati Max, 329 Q4FY22 H2FY25 75 110 135 14 71 44 Mumbai -1* Vikrant Foundation, 300 Q4FY24 H1FY26 12 12 99 66 90 156 36 (Saket Complex) Max Smart, 250 Q2FY25 H1FY27 30 40 (Saket Complex) -2 40 47 113 Nanavati Max, Q2FY25 271 H2FY27 45 80 130 28 Mumbai - 2* Max Smart, 300 On or after FY28 ΝΑ . . . 225 (Saket Complex) -3 Max Smart. 200 On or after FY28 NA 270 (Saket Complex) -4 Vikrant Foundation, 200 On or after FY28 ΝΑ 240 (Saket Complex) -2 Brownfield projects 188 486 514 568 229 177 876 Gurugram Sector 56** 500 Q4FY23 H1FY26 160 155 190 165 Gurugram Sector 53** 500 On or after FY28 ΝΑ 670 Greenfield Projects** 160 155 190 165 670 * ~160 beds needs to be demolished before commencement of Phase 2 | **Excludes land cost | Above excludes routine capex 17#183.1 MAX Healthcare Saket Complex has potential to be South Asia's largest private integrated healthcare complex with 2,300+ beds Saket Complex - Current status Existin Diagnostic Block Existing Service Block Existing Max Saket Existing OPD Block Vikrant Foundation Land Saket Complex - Future Plans Total new beds - - 1,600 Total beds in Saket complex - 2,370 New Saket Block Vikrant Block 200 beds 200 beds West Block 900 beds 300 beds • Plans to create 2,300+ beds contiguous medical hub spread over 23 acres of land in the heart of our national capital in South Delhi • This will be enabled by augmentation of existing 770 beds with - ~1,100 additional beds in Max Smart in four phases as per current brownfield expansion plans, and East Block ~500 beds at Vikrant Foundation over two phases 18#193.1 MAX Healthcare Nanavati Max Hospital set to be one of the largest private quaternary care complexes in Mumbai with ~770 beds Nanavati Nanavati Max Hospital - Future plans Plans to add ~440 net beds spread over 3.9 acres of land in the iconic Nanavati Max Hospital located in the heart of Mumbai - Addition of ~339 beds in phase 1 by Q3 FY25 as part of a new block Demolition of ~160 beds before commencement of Phase 2 Addition of ~271 beds in phase 2 by Q3 FY27 New metro station proposed to come up next to Nanavati, which will increase accessibility and hence footfalls . Bed expansion to aid EBITDA margin expansion and enable spreading of employee cost over a larger base (1) Note: (1) Reduction in employee cost as % of revenue due to beds addition will be in addition to the VRS scheme recently initiated by the company 19#203.1 MAX Healthcare Max Hospital to set up 1,000+ hospitals beds in the heart of Gurugram Gurugram - Land Parcel (Sector 53) Horizon One & Two Camellia, DLE Golf Links rse Road 500 beds • Plans to create ~1,000 beds on land parcels spread over ~11.4 acres at most prime location in Gurugram, Haryana Proposed Plot Sector 53 Imaulo 2021 MaxTechnology Line 3D path Path Polygon Circle 3D polygon Measure the distance or area of a geometric shape on the ground Perimeter: Area: 637.91 Meters 5.99 Acres Mouse Navigation Imagery Date: 3/28/2021 28 26:36.87 N 77°06'05.89 E elev Save Clear Om eye alt 973 me ~6.11 acres plot in sector 53 is at Golf course road, is in midst of posh and well developed premium residential developments, premium office places and well connected with Rapid Metro line Gurugram - Land Parcel (Sector 56) 500 beds Image 2021 Marer Wechnologies Google Earth ~5.26 acres plot in sector 56, is in midst of well developed inhabited residential area. The land parcel is open from three sides and is ~500 meters away from Golf Course Road. It is well connected by Rapid Metro line Imagery Date: 3/28/2021 28°26'02.06" N 77°06'23.69" E elev Om eye alt 958 m 20#213.2 MAX Healthcare Strengthen existing network through asset light O&M arrangements and opportunistic greenfield projects Plans to operationalise ~1,000 beds each through asset light O&M arrangements and greenfield projects Returns from hospital operations post revenue share with partner Max Healthcare Operation and management O&M agreement Asset Key benefits Partner / REIT Construction and ownership Asset light model with high ROCE De-risking cost and time over runs Helps to expand faster without being a drain on the cash flow ILLUSTRATIVE Returns typically in the form of revenue share with a minimum guarantee Pursuing compelling greenfield led expansion plans through access to exclusive and valuable land banks in strategically important locations like Gurugram 21#224 MAX Healthcare Develop asset light adjacencies: Max Lab - Targeting to be amongst the top 5 players in the industry in next 5 years Organised diagnostics player to grow faster than overall diagnostic Industry driven by consolidation Indian diagnostic Industry market size (INR Bn) 472 FY17 684 FY20 950 FY23P Indian diagnostic Industry mix by type of providers 12-17% ■ Organized 35-40% Hospital based 45-50% Unorganized Shift to organised diagnostics centers driven by preference for higher quality and brands Max Lab (Non-captive Pathology SBU) - Over 13x revenue growth in 4 years Net revenue (INR Cr) 66 55 8 16 4 T T 9% 7.4 EBITDA* (INR Cr) 25% 21% 18% 20% 15% +90% 27 41 35 7% 10% 24 22 4.5 17 20 2 13 39 4 2% - 5% -5 1.6 5 12 15 18 1.0 0.4 0 0% FY17 FY18 FY19 FY20 FY21 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 FY21 FY22 FY22 FY21 FY21 FY21 FY22 FY22** Non Covid-19 EBITDA margin (%) 21 EBITDA 220+ Partner-run collection centres 13 Company owned collection centres (CoCC) 135+ Phlebotomist At Site (PAS) 200+ Pick-Up Points (PUPS) 19 Hospital based Lab Management (HLMs) 20+ Cities of operations 1,900+ Tests in portfolio Note: All operating numbers as of September 30, 2021; Gross Merchandise Value (GMV) is total value paid by patient; Net Revenue represents GMV minus partner share; *margin computed on net revenue, based on 50:50 revenue share between Max Lab and hospitals for the samples tested in the network hospital labs; **Q2 FY22 EBITDA is after considering investment towards future growth i.e Manpower, advertisement, new website launch, startup costs of new CoCCs etc. 22#234 MAX Healthcare Develop asset light adjacencies: Max@Home - Targeting to be the largest player in Delhi NCR Indian home healthcare is under-penetrated with ~3.6% of total health spending on home healthcare vis-à-vis ~8.3% in the US Indian home healthcare market to grow at a CAGR of ~15% to 19% over next 5 years... ...with organised healthcare contributing USD 300 mn by 2025, with 40% CAGR... USD bn 11-13 ...likely to serve 4-5 lakh Lacs patients daily by 2025 4-5 5.4 15% -19% 2020 2025 1.0 2020 2025 Max@Home: Over 7x revenue growth in 4 years Growth Drivers Home healthcare solutions ~40% less costly compared to hospitals Rising doctor's acceptance of home healthcare Insurance policies covering home healthcare expenses Provide quality services through high-end digital systems Gross revenue (INR Cr) Rapid growth through scale up of direct to customer services +64% Sharp recovery post initial dip due to Covid-19 77 63 70 28 23 27 27 10 FY17 FY18 FY19 FY20 FY21 Q4 Q1 Q2 FY21 FY22 FY22 Source: Redseer Consulting 960 daily call volumes managed 24x7 Customer Support Max@Home comprehensive and round the clock service offerings Nursing Care | Attendant care | Critical care nursing | Medicine delivery | Home sample collection | Rehab medicine | X-ray at home | ECG at home | Health checkup at home | Nursing procedures | Doctor Visit | Medical rooms | Adult immunisation | 23#245 MAX Healthcare Digital platform enabling best-in-class omnichannel healthcare experience Underlying principles Hyper-personalised patient experience Integrated data/view/ records across centres and channel One custom journey across transactions and touch points Omnichannel approach to enable self-help Save time & drive transparency - Timely engagement/ communication Enable tangible increase in patient stickiness & lifetime value Agile onboarding of 3rd party products (e.g. Al, IOT, Insurance) Integrated e-commerce services (Max@Home including pharmacy, radiology, Video Consults) 30 minute ambulance, 1 hour pharma delivery promise New age patient experience • Real-time ultra reliable low latency video consult • Hyper-personalised pre-hospital and in-hospital services for patients • Real time information on OT schedule, procedure, doctor visit, result of procedures • Integrated care models for chronic disease management • Family doctor or primary care physician concept • A/V for ICUs and CCUS patients to at least see/speak to the family • Cost Assurance: Payment transparency and interactive details for every cost item • Dedicated care plans for dieticians/nutritionist • Paper-less admission after transfer - Real-time integration with nursing homes/primary care centers • Convenience - Uber / Ola API integration for pickup and drop, airline boarding and bed allocation Digital revenue through online marketing activities and web-based appointments accounted for ~11% of overall revenue in Q2 FY22 Leverage Max Healthcare's strong brand, customer base, clinical expertise, doctor network and data to provide existing and new customers with a seamless and best-in-class omnichannel healthcare experience 24#256 MAX Strong track record of successful acquisitions Healthcare Management team has done multiple successful acquisitions including BLK, Nanavati and Max Healthcare Adequate headroom driven by strong free cash flows and low leverage to pursue M&A even after considering brownfield and greenfield expansions Case study on Max acquisition and turnaround EBITDA Margin 9.7% 14.7% (3.9%) 16.2% 23.2% 24.1% 27.2% 26.8% Received shareholder approval in Q1FY20 EBITDA (INR Cr) 348 590 H1FY22 EBITDA of ~INR 722 Cr more than FY21 full year EBITDA of INR 636 Cr 362 360 253 263 59 25 143 301 337 -22 FY19 FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Covid-19 vaccination & related antibody tests EBITDA Sharp recovery driven by: Q2FY22 Performance improvement driven by: • ~INR 220 Cr worth of initiatives implemented with ~INR 140 Cr flowing in EBITDA in FY20 • Increased high-end tertiary and quaternary procedures with hiring of new senior clinical teams • Normalisation of non-covid IPD admissions and OPD footfalls in Q2 FY22 • New structural cost initiatives worth ~INR 108 Cr were implemented with ~INR 73 Cr flowing in EBITDA in FY21 • Full year impact on FY21 EBITDA of the initiatives implemented in FY20, amounting to ~INR 80 Cr 25#26MAX Healthcare Financial Highlights 26#27MAX Financial performance snapshot Healthcare Figs in INR Cr FY19 FY20 FY21 H1 FY22 Amount % NR Amount % NR Amount % NR Amount % NR Gross revenue (incl. movement in unbilled) 3,920 4,356 3,881 2,819 Net revenue 3,599 100.0% 4,023 100.0% 3,629 100.0% 2,675 100.0% Direct costs 1,566 43.5% 1,715 42.6% 1,508 41.6% 1,090 40.3% Contribution 2,033 56.5% 2,308 57.4% 2,121 58.4% 1,585 59.2% 1,685 46.8% 1,719 42.7% 1,485 40.9% 863 32.3% Indirect overheads Operating EBITDA Loss on fair valuation of pre-merger holding of Radiant under IND AS 103 Transaction cost - ESOP (Equity settled scheme) One time policy harmonisation impact 348 9.7% 590 14.7% 636 17.5% 722 27.0% 196 5.4% 0.0% 30 0.8% 43 1.1% 48 1.3% 0.0% 27 0.7% 25 0.9% 5 0.1% 0.0% 1992 0.5% (3) (0.1%) 1 0.0% 10 0.4% Movement in fair value of contingent consideration 19 payable and amortisation of contract assets Exceptional costs: Provision for terminal benefits under VRS4 8 00 0.3% Reported EBITDA 299 8.3% 549 13.6% 359 9.9% 679 25.4% Finance cost (net) 155 4.3% 215 5.3% 187 5.2% 61 2.3% Depreciation and amortisation 186 5.2% 208 5.2% 216 6.0% 122 4.6% Profit before tax (42) (1.2%) 126 3.1% (45) (1.2%) 496 18.5% Tax 18 Profit after tax (60) 0.5% (1.7%) (3) (0.1%) 50 1.4% 84 3.1% 129 3.2% (95) (2.6%) 412 15.4% Note: 2. 3. 1. The numbers for the previous periods have been re-casted and regrouped to match with the disclosure in the current period FY19 financials are pre-IND AS -116 unaudited numbers based on arithmetic total of line items appearing in the pre-merger P&L of Max Healthcare and Radiant Lifecare Operating EBITDA (pre Ind AS-116) stood at INR 548 Cr in FY20, INR 601 Cr in FY21 and INR 703 Cr in H1 FY22 4. Provision for VRS expenses relate to Nanavati Max Hospital and represents the likely payout to the employees who have applied under the ongoing scheme so far 27 27#28MAX Healthcare Max Healthcare: Memorandum Profit & Loss Consolidation sheet of Network Financials for H1 FY22 MHIL & its subsidiaries & Silos Partner Healthcare Facilities ("PHF") Financials (IGAAP Unaudited)* (INR Cr) Eliminations & MHC Network (Consolidated) Ind AS Unaudited Balaji Society GM Modi Society Devki Devi Society IND AS Adjustment (2,6) (Certified by an ICA) Adjustment (1) Revenue from operations 2,019 275 173 369 (175) 2,660 Other Income (3) 19 1 1 5 (12) 15 Total Operating income 2,037 276 174 374 (186) 2,675 Purchase of pharmacy, drugs, consumables & implants 514 53 41 117 10 735 Employee benefits expense (4) 380 38 25 38 84 565 Other expenses (5) 608 116 80 136 (285) 653 Total Expenses 1,502 207 145 292 Operating EBITDA 536 69 69 29 82 22 (2) (191) 1,953 5 722 Less : non-operating expenses ESOP (Equity-settled Scheme) 25 Movement in fair value of contingent consideration payable and 10 amortisation of contract assets Exceptional costs: Provision for terminal benefits under VRS Reported EBITDA Finance Cost (Net) Depreciation & Amortisation Profit/ (Loss) before tax Tax expenses Profit/ (Loss) after tax 1 1 . 25 45 10 8 8 492 69 29 82 2 5 679 15 5 15 16 1 8 61 107 9 7 12 1 (15) 122 370 55 7 54 11 496 80 4 84 290 55 7 54 7 412 *Newly added PHF i.e. Vikrant Children Foundation has not been reflected separately due to negligible transactions in the entity's P&L (1) Mainly relates to Ind AS 116 (Accounting for Leases) at PHFs | (2) Eliminations relate to amount charged to PHFs under medical service agreements and sale of pharmaceuticals etc. Also includes impact on amortisation due to reversal of Intangible assets recognised in MHIL & its subsidiaries for contracts with PHFs. The NPV of the amount payable by a PHF to unconsolidated part of the other Society over the contract period has been accrued under IND AS and payment there against has thus been knocked off against the liability. | (3) Other Income includes income from Clinical trials, EPCG, Unclaimed Balances written back, Sponsorships and Contributions received, etc. | (4) Includes movement in OCI for actuarial valuation impact but excludes ESOP (Equity Settled) expenses. | (5) Net of reversal of prov. for bad debts and bad debts recovered in current period and also excludes movement in fair value of contingent consideration and amortisation of contract assets which is considered below Operating EBITDA | (6) Some of the items have been reclassified across line items to match with the commonly understood industry practices, e.g. forex gain/loss reclassified under Finance costs, Clinician costs reclassified under employee benefits expense, etc. 28#29MAX Healthcare Thank You 29 29#30MAX Healthcare Appendix 1. Covid-19 Response 2. Network structure 30#31MAX Healthcare Appendix 1 Covid-19 Response 31#32MAX Healthcare Covid-19 Update (1/2) Key contributions* : Infrastructure support ~45 Covid-19 beds occupied on an average during Q2 FY22 ~7,30,000 RT PCR tests done ~20,10,000 Vaccine doses administered HOTEL Our response : First private hospital to offer a dedicated facility in Delhi for Covid-19 care One of the first private sector labs to start Covid-19 testing *Operationalised one of the largest Covid-19 vaccination centers across India spread over 1.65 acres; can operate 50 billing and 40 nursing counters capacity to administer ~10,000 vaccine doses in a day Inoculated upto ~48,600 individuals in a single day across all the channels combined Installed O2 generators at five network hospitals in NCR, thereby reducing dependence on liquid medical oxygen *First of its kind convalescent plasma therapy trial for critically ill patients Set up Covid-19 related medical processes- Formulated detailed clinical protocols for clinical management and infection prevention Created isolation areas for segregation Patients treated ~33,300 at hospital ~2,800 at home ~1,150 at hotels Research Community support 45+ Covid-19 related projects initiated *till October 31, 2021 ~3,00,000 free meals served Provided intensive training to frontline medical personnel Strengthened digital platforms- Significantly ramped up tele-consulting- ~20,000 video consults during Q2 FY22 Developed remote monitoring capabilities, particularly during lockdown, in Tri-city 32#33MAX Covid-19 Update (2/2) Healthcare Post sharp fall in occupancy rate at the start of first wave of Covid-19 at the end of Mar'20, the overall occupancy steadily rose back to normal levels in Q3 FY21 In Jan 21, occupancy decreased to ~66% levels with decline in Covid-19 cases leading to underutilisation of Covid-19 reserved beds and farmer's agitation impacting flow of upcountry non-covid patients Occupancy rebounded to 85%+ levels in Apr'21 and May'21 as second wave of Covid-19 hit India and normalised to ~75% levels towards the end of Q2 FY22, as Covid-19 cases declined 72 66 61 45 77 79 79 Occupancy (%) 71 75 66 69 87 85 69 72 75 79 81 FY20 Q1 FY21 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 During April-May'21, higher number of beds were allocated to cater to surge of patients in the second wave of Covid-19 Covid-19 reserved beds were varied in tandem with the rate of Covid-19 admissions and advisory from the regulatory bodies Non-covid occupancy during Q1 FY22 was mainly driven by Oncology, Renal sciences and Neurosciences Non Covid-19 discharges have consistently risen during last 6 months Since Aug 21, just ~1% of the total occupied beds are being utilised for treatment of Covid-19 patients Occupied bed share split (%) 13% 7% 10% 48% 19% 81% 3% 1% 1% 1% 97% 99% 99% 99% 36% 28% 42% 52% 87% 93% 90% 64% 72% 58% Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Covid-19 Non Covid-19 occupancy ¹ (%) 80% Nov-20 80% Dec-20 79% 76% Jan-21 Feb-21 79% Mar-21 96% Apr-21 Jun-21 Non Covid-19 83% May-21 76% Jun-21 Jul-21 Aug-21 Sep-21 73% 76% Jul-21 79% Aug-21 Sep-21 Oct-21 82% Oct-21 1) Occupancy calculated on the basis of beds dedicated to non Covid-19 for the respective month 33#34MAX Healthcare Appendix 2 Network structure 34#35MAX Network Structure Healthcare Max Shalimar Bagh Max Dehradun Max Panchsheel Immigration centre (Lajpat Nagar) MHIL Max Saket (West) SBUS (MaxLab, Max@Home) Immigration centre (Mohali) 100% 100.0% 100.0% Medical Service Agreement with Society Balaji Society (Max Patparganj) Valid till 2065 Devki Devi Society (Max Saket East, Onco day care center) Valid till 2064 99.04% 100% 100% 99.99% Max Lab Limited HBPL (Max Bathinda) (Max Mohali) ALPS Hospital Ltd. (Max Gurugram) CRL* (Max Vaishali) (Max Noida) Saket City Hospitals Ltd. Max Healthcare FZ- LLC (Dubai) Radiant Life Care Mumbai Pvt. Ltd. 100.0% Medical Services contain specific specialties & Pathology/Radiology services, as may be the case ET Planners Pvt. Ltd. Medical Service Agreement Vikrant Children's foundation & research Centre Valid till 2111 Medical Service Agreement Gujarmal Modi Society (Max Smart) Valid till 2105 O&M / Medical service agreement BLK-Max Hospital Valid till 2054 O&M / Medical service agreement Nanavati Max Hospital Valid till 2043 Owned Partner healthcare facilities Managed healthcare facilities Corporate structure as on Sept 30, 2021 Validity includes extensions available under the contract MHIL - Max Healthcare Institute Limited; CRL - Crosslay Remedies Limited; HBPL - Hometrail Buildtech Private Limited 35#36MAX List of Network Healthcare Facilities Healthcare Name Location Description Max Super Speciality Hospital, (West Block) Saket Max Super Speciality Hospital, (East Block) Saket Delhi Hospital Delhi Hospital Max Smart Super Speciality Hospital, Saket Delhi Hospital BLK-Max Super Speciality Hospital, Rajendra Place Delhi Hospital Nanavati Max Hospital, Mumbai Mumbai Hospital Max Hospital, Gurugram Gurugram Hospital Max Super Speciality Hospital, Patparganj Delhi Hospital Max Super Speciality Hospital, Vaishali Ghaziabad Hospital Max Super Speciality Hospital, Shalimar Bagh Delhi Hospital Max Super Speciality Hospital, Mohali Max Super Speciality Hospital, Bhatinda Max Super Speciality Hospital, Dehradun Mohali Hospital Bathinda Hospital Dehradun Hospital Max Multi Speciality Centre, Panchsheel Park Delhi Medical centre Max MedCentre, Lajpat Nagar (Immigration Department) Delhi Medical centre Max Institute of Cancer Care, Lajpat Nagar Delhi Medical centre Max Multi Speciality Centre, Noida Noida Medical centre Max MedCentre, Mohali Mohali Medical centre As on September 30, 2021 36#37MAX Definitions Healthcare Term Gross Revenue Net Revenue Contribution Indirect overheads Operating EBITDA EBITDA per bed Cash from operations ARPOB Description Amount billed to the patients/customers as per contracted/rack rates, as applicable, including the patients from the economically weaker section (EWS) on discharge basis; Also includes movement in unbilled revenue at the end of the period for patients admitted in the hospital on reporting date and other operating income such as SEIS income, EPCG income, unclaimed balances written back, etc. Gross revenue minus management discounts, amount billed to EWS patients, employee discounts, marketing discounts and allowance for deductions for expected credit loss. Net revenue minus material cost, F&B cost and salary/professional fess paid to clinicians credentialed for OPD consultations and IPD admissions Major costs include - Personnel costs (excl. clinicians credentialed for OPD consultations and IPD admissions), hospital services, Admin, Provision for doubtful debts, advertisement and allied costs, Power and utilities, Repair and maintenance Contribution minus indirect overheads, excluding one-off expenses, extraordinary expenses and specific non- cash expenses (itemised separately) which are accrued due to IND AS requirements, but are not operating in nature; Operating EBITDA divided by occupied bed days, annualised. Excludes incremental EBITDA from Covid-19 vaccination & related antibody tests and Max Lab operations Represents cash generated from operations after amount deployed for routine capex, finance cost and working capital changes relating to operations Average Revenue per Occupied Bed; Gross revenue divided by the occupied bed days; excludes revenue from Covid-19 vaccination & related antibody tests and Max Lab operations ALOS Average Length of Stay; on discharge basis 37#38MAX About us Healthcare Max Healthcare Institute Limited (MHIL) is India's leading provider of healthcare services. It is committed to the highest standards of medical and service excellence, patient care, scientific and medical education. For further information, please contact: For more information, visit www.maxhealthcare.in MHIL has major concentration in north India consisting of a network of 17 healthcare facilities. Out of the total network, eight hospitals and four medical centres are located in Delhi and the NCR and the others are located in the cities of Mumbai, Mohali, Bathinda and Dehradun. The Max network includes all the hospitals and medical centres owned, operated and managed by the Company and its subsidiaries, and partner healthcare facilities. These include state-of-the-art tertiary and quaternary care hospitals at Saket, Patparganj, Vaishali, Rajendra Place, and Shalimar Bagh in NCR Delhi and one each in Mumbai, Mohali, Bathinda and Dehradun, secondary care hospital in Gurugram and Day Care Centres at Noida, Lajpat Nagar and Panchsheel Park in NCR Delhi and one in Mohali, Punjab. The hospitals in Mohali and Bathinda are under PPP arrangement with the Government of Punjab. In addition to its core hospital business, MHIL has two SBUS - Max@Home and MaxLab. Max@Home is a platform that provides health and wellness services at home and MaxLab offers diagnostic services to patients outside its network. Abhishek Agarwal Max Healthcare Institute Ltd. Tel: +91 98998 41175 Email: [email protected] Anoop Poojari / Suraj Digawalekar CDR India Tel: +91 98330 90434/98211 94418 Email: [email protected], suraj@cdr- india.com 88 38