#1FORTIS HEALTHCARE LIMITED EARNINGS PRESENTATION - Q3 FY24 and 9M FY24 February 7, 2024 9 Fortis 1#2DISCLAIMER This presentation may not be copied, published, distributed or transmitted. The presentation has been prepared solely by the company. Any reference in this presentation to "Fortis Healthcare Limited" shall mean, collectively, the Company and its subsidiaries. This presentation has been prepared for informational purposes only. This presentation does not constitute a prospectus, offering circular or offering memorandum and is not an offer or invitation to buy or sell any securities, nor shall part, or all, of this presentation form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. Furthermore, this presentation is not and should not be construed as an offer or a solicitation of an offer to buy securities of the company for sale in the United States, India or any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering in the United States may be made only by means of an offering document that may be obtained from the Company and that will contain detailed information about the Company and its management, as well as financial statements. Any offer or sale of securities in a given jurisdiction is subject to the applicable laws of that jurisdiction. This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this presentation, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. By attending or assessing this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date. Fortis 2#3DISCLAIMER (CONTD.) Agilus Diagnostics Limited ("Agilus"), a subsidiary of Fortis Healthcare Limited ("Company"), is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offer of its equity shares and has filed a draft red herring prospectus ("DRHP") with the Securities and Exchange Board of India ("SEBI"). The DRHP is available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the book running lead managers ICICI Securities Limited, Citigroup Global Markets India Private Limited and Axis Capital Limited, at www.icicisecurities.com, www.online.citibank.co.in and www.axiscapital.co.in respectively, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com, respectively. Investors should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the RHP which may be filed with the Registrar of Companies, Punjab and Chandigarh at Chandigarh in the future, including the section titled "Risk Factors". Potential investors should not rely on the DRHP filed with SEBI in making any investment decision. In light of the publicity restrictions imposed on Agilus and the Company due to the proposed IPO, no further information other than that contained in this presentation can be disclosed. The equity shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any other applicable law of the United States and, unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the equity shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales occur. The equity shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction. Fortis 3#4Beds Punjab Mohali About Fortis Healthcare 774 J&K FMC Srinagar 1,722 National Capital Region FMRI, Gurugram FEHI, New Delhi Shalimar Bagh Noida Vasant Kunj (O&M) Faridabad La Femme GK Def Col C-DOC Greater Noida (O&M) 27 Healthcare Facilities 4,500+ Operational Beds 5,500+ Doctors Ludhiana Ludhiana 2 Amritsar Rajasthan Jaipur 275 Maharashtra Mulund 770 Vashi Kalyan SL Raheja (O&M) 620 Karnataka Bengaluru BG Road CH Road NagarBhavi Rajaji Nagar Richmond Road 6,500+ Nurses 335 West Bengal Kolkata Anandpur FHKI & FMC ~24,000 employees (including Agilus) Chhattisgarh Raigarh (O&M) 70 GINT COMMISSION Organization Accredited by Joint Commission ematonal TIENT SAFETY CAR NABH ACCREDITED 4 JCI Accredited 21 NABH Accredited Among the most accredited healthcare network in India Fortis 4#5AGENDA 1. Performance Highlights • Earnings and Financial Summary - Q3 FY24 and 9M FY24 2. Performance Review - Hospital Business 3. Beds Expansion Update 4. Clinical Excellence at Fortis 5. Appendix 13 TUESDAY WE 20 21 28 27 Fortis 5#6Q3FY24 and 9MFY24 PERFORMANCE HIGHLIGHTS 6#7Q3FY24 SNAPSHOT Consolidated Revenue 1,680 Crores 7.7% Consolidated Op EBITDA 284 Crores (16.9% Margin) 2.7% Consolidated PBT* 175 Crores 0.5% Consolidated PAT* 127 Crores 3.2% Net Debt (Cash)^ 518 Crores Net Debt to EBITDA^ 0.45x vs 0.41x *Excluding exceptional items ^As on 31st December 2023 Fortis 7#89MFY24 SNAPSHOT Consolidated Revenue 5,107 Crores 9.7% Consolidated Op EBITDA 887 Crores (17.4% Margin) ↑ 6.8% Consolidated PBT* 574 Crores 1.1% Consolidated PAT* 429 Crores 0.6% *Excluding exceptional items ^As on 31st December 2023 Net Debt (Cash)^ 518 Crores Net Debt to EBITDA^ 0.45x vs 0.41x Fortis 8#9Q3FY24 SNAPSHOT Hospital business revenues grew by 9.6% to INR 1,389.5 Cr versus INR 1,267.4 Cr in Q3FY23. For 9MFY24, revenue grew by 11.7% YoY to INR 4,196.2 Cr. Hospital Business Operating EBITDA stood at INR 250.8 Cr, up 18.8%; Operating margin increased to 18.0% in Q3FY24 from 16.7% in Q3FY23. Q3FY24 hospital business ARPOB was at INR 2.23 Cr p.a. vs INR 2.02 Cr p.a. in Q3FY23, up 10.6% Occupancy for the quarter stood at 64.0% versus 66.1% in Q3FY23 ➤ The company's diagnostics business reported gross revenues of INR 330.7 Cr versus INR 331.5 Cr in Q3FY23*. For 9MFY24*, revenue grew by 1.8% to INR 1,033.6 Cr. Net debt to EBITDA stood at 0.45x versus 0.41x in the corresponding previous period; net debt stands at INR 518 Cr In Feb 24, as part of the company's ongoing portfolio rationalization strategy, Fortis divested its Malar, Chennai facility *As per the segmental reporting in accordance with Ind AS 108, as provided in the statement of unaudited consolidated financial results for the quarter and nine months ended December 31, 2023 it Fortis 9#10CONSOLIDATED EARNINGS SUMMARY - Q3 FY24 Revenue 1,769.9 1,679.7 276.4 1,559.9 Op EBITDA & Margin 329.8 All figures in INR Cr. 284.0 17.7% 18.6% 16.9% Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Up 7.7% Up 2.7% 174.6 PBT before Exceptional Items 229.0 PAT* 180.2 175.4 130.7 Q3FY23 Q2FY24 Q3FY24 126.5 Q3FY23 Q2FY24 Q3FY24 *Q3FY24 PAT excludes exceptional net gain of INR 7.7 Cr related to reversal of impairment in an associate Company *Q2FY24 PAT excludes exceptional net gain of INR 3.7 Cr related to the divestment of the Vadapalani, Chennai facility in July 2023 *Q3FY23 PAT excludes exceptional gain of INR 11.5 Cr which pertains to reversal of impairment in an associate Company Fortis 10#11CONSOLIDATED EARNINGS SUMMARY - 9M FY24 4,654.9 9MFY23 All figures in INR Cr. Op EBITDA & Margin 886.6 Revenue 5,107.0 830.5 17.8% 17.4% 9MFY24 9MFY23 9MFY24 Up 9.7% Up 6.8% PBT before Exceptional Items 567.2 9MFY23 573.7 431.6 9MFY24 9MFY23 PAT* 429.2 9MFY24 *9MFY24 PAT excludes exceptional net gain of INR 12.9 Cr related to the divestment of the Vadapalani, Chennai facility in July 2023 and reversal of impairment in an associate Company *9MFY23 PAT excludes exceptional gain of INR 63.1 Cr which primarily pertains to reversal of impairment in an associate Company Fortis 11#12CONSOLIDATED EARNINGS SUMMARY Consolidated Revenue 1,643 1,657 1,560 Q3FY23 Q4FY23 Q1FY24 All figures in INR Cr. 1,770 1,680 Q2FY24 Op EBITDA Margin Op EBITDA PBT (before Exceptional items) 330 Q3FY24 276 284 271 273 18.6% 17.7% 16.5% 16.5% 16.9% 229 175 173 169 175 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 it Fortis 12#13Key Performance Indicators Overall Occupancy • Q3FY24 HOSPITAL BUSINESS HIGHLIGHTS Occupied beds remained almost flat at 2,627 compared to 2,641 in Q3FY23 - however, occupancy declined by 2% due to a net increase of ~100 beds YoY Revenue from focus specialties comprising Oncology, Gastroenterology, Neurosciences, Renal Sciences, Orthopaedics and Cardiac Sciences grew 11.1% and contributed 61% to overall hospital business revenues (similar to Q3FY23) 66% Q3FY23 • International Patient revenues remained almost flat YoY at INR 113 Cr in Q3FY24 vs INR 114 Cr in Q3FY23. The business contributed 7.7% to overall hospital business revenues in Q3FY24 versus 8.6% in Q3FY23 2.02 • Company further strengthened its medical talent with the onboarding of specialists in the areas of Neuro Surgery, Oncology, Cardiology, Gastroenterology and Gl Surgery 69% Q2FY24 64% Q3FY24 ARPOB (INR Cr per annum) 2.21 2.23 Q3FY23 Q2FY24 Q3FY24 Up 10.6% Fortis 13#14OPERATING PERFORMANCE HOSPITAL BUSINESS Particulars (INR Cr) Hospital Business Operating Revenue Revenue Growth vs LY Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 1,267.4 1,452.6 1,389.5 3,756.8 4,196.2 12.0% 9.6% 11.7% Reported EBITDA^ 217.0 289.4 253.6 692.0 751.1 EBITDA growth vs LY 8.3% 16.9% 8.5% Margin 17.1% 19.9% 18.2% 18.4% 17.9% Adj: Other Income^ 6.0 21.7 2.8 51.0 26.2 Operating EBITDA 211.0 267.7 250.8 641.0 724.9 Margin 16.7% 18.4% 18.0% 17.1% 17.3% • Above financials includes financials of International entities which are part of Fortis group; mainly RHTTM ^Hospital business reported EBITDA for Q2FY24, 9MFY24 and 9MFY23 includes other income primarily as a result of the dividend income received from the Company's majority owed (57%) subsidiary Agilus Diagnostics Fortis 14#15BALANCE SHEET December 31, 2023 Balance Sheet (INR Cr) Shareholder's Equity Debt Lease Liabilities (Ind AS 116)* Total Capital Employed Dec 31, 2022 March 31, 2023 Dec 31, 2023 7,937 8,100 8,598 839 703 812 308 223 299 9,084 9,026 9,709 Net Fixed Assets (including intangibles & CWIP) 5,693 5,513 6,184 Goodwill 4,133 4,141 4,214 Investments 169 210 227 Cash and Cash Equivalents 366 363 294 Net Other Assets^ (1,279) (1,201) (1,210) Total Assets 9,084 9,026 9,709 Net Debt/(cash) Net Debt to Equity 471 0.06x 340 518 0.04x 0.06x • *Pertains to lease liability on account of adoption of new accounting standard on leases w.e.f. April 1, 2019. • Net debt excludes lease liabilities • Net debt to EBITDA was at 0.45x vs 0.41x (basis annualized EBITDA of Q3FY24 and annualized EBITDA Q3FY23, respectively) ^Includes PUT option liability pertaining to Agilus' 31% Stake held by private equity investors; includes assets & liabilities held for sale with respect to Vadapalani operations for previous quarters Fortis 15#16PERFORMANCE REVIEW HOSPITALS BUSINESS 16#17REVENUE MIX Q3 FY23 Q2 FY24 Gross Revenue: INR 1,331 Cr Gross Revenue: INR 1,532 CR 41% 41% 59% Q3 FY24 Gross Revenue: INR 1,465 CR 42% 59% 58% Non Surgical Revenue Surgical Revenue Contribution from Surgical revenue stood at 58% compared to 59% in both Q2FY24 and Q3FY23 Fortis 17#18SPECIALTY MIX Other IPD, 17.3% OPD, 11.9% Gynae, 4.1% Q3 FY23 Other Operating Revenue, 2.7% Cardiac, 18.3% Ortho, 8.4% Other IPD, 16.9% OPD, 13.5% Q3 FY24 Other Operating Revenue, 1.3% Cardiac, OO 17.6% - Ortho, 8.5% Renal, 7.4% Renal, 7.2% Gynae, 3.7% Pulmo, 3.1% Neuro, 8.7% Gastro, 5.1% Onco, 14.2% Pulmo, 2.9% Neuro, 8.4% Gastro, 4.6% Onco, 13.9% Specialties such as Gastroenterology, Pulmonology, Neuro Sciences, Oncology and Renal Sciences witnessed revenue growth of 21%, 17%, 14%, 13% and 13% respectively Fortis 18#19PAYOR MIX Q3 FY23 TPAS, 34.9% ESI, 0.1% Cash: Domestic, 36.2% O Pvt Corps, 0.8% Govt & PSUs, 9.5% International, 8.6% CGHS, 3.5% ECHS, 6.3% TPAS, 36.0% Pvt Corps, 0.8% Q3 FY24 ESI, 0.0% Govt & PSUs, 8.5% CGHS, 4.1% ECHS, 7.1% Cash: Domestic, 35.8% International, 7.7% Fortis 19#20HOSPITAL BUSINESS PERFORMANCE - Q3FY24 All the key healthcare facilities continue to witness an upward momentum in revenues YoY Revenue 193 195 171 Q3FY23 ■Q3FY24 142 127 114 124 108 120 104 98 106 92 101 68 75 53 56 44 48 FMRI Mohali BG Road Shalimar Bagh Noida Mulund FEHI Anandpur Jaipur Faridabad 221 Revenue Q2FY24■Q3FY24 195 172 171 131 127 125 124 124 120 108 106 108 101 78 75 61 56 52 48 FMRI Mohali BG Road Shalimar Bagh Noida Mulund FEHI Anandpur Jaipur Faridabad Fortis All figures in INR Cr. 20#21FY23 Q2 FY24* Q3 FY24* HOSPITAL MARGIN MATRIX EBITDA 20%-25% No. of Facilities Revenue Contribution Operational Beds ARPOB (INR Cr) Occupancy 9 51.1% 1,852 2.25 71.3% 15% - 20% 3 22.4% 756 2.88 60.4% 10% - 15% 3 8.9% 498 1.55 67.3% <10% 6 16.5% 949 1.93 54.1% EBITDA No. of Facilities Revenue Contribution Operational Beds ARPOB (INR Cr) Occupancy 20%-25% 9 62.6% 2,210 2.39 72.2% 15%-20% 5 16.7% 720 1.86 76.4% 10% - 15% 1 2.8% 119 2.23 62.6% <10% 6 16.9% 951 1.93 58.2% EBITDA No. of Facilities Revenue Contribution Operational Beds ARPOB (INR Cr) Occupancy 20% -25% 6 52.4% 1,609 2.47 70% 15%-20% 10%-15% 7 21.4% 975 1.62 72% 2 5.1% 246 1.55 72% <10% 7 20.3% 1,145 1.70 57% Fortis *Q2 and Q3FY24 numbers exclude Vadapalani Facility; FY23 numbers include Vadapalani Defence Colony facility is not being considered (day care facility) for the purpose of margin matrix - Q2 numbers have been updated to reflect the same 21#22BEDS EXPANSION UPDATE 22#23NEW FACILITY LAUNCH Fortis Healthcare's newest facility, multi-specialty hospital on Mall Road, Ludhiana, was inaugurated in Dec'23 70 Beds 4th Facility in Punjab 2nd Facility in Ludhiana 02 80 Fortis 772 Beds in Punjab да 501 Fortis 23#24Beds Expansion Plan Planned capacity addition of ~2,200 beds* from FY23 to FY28 No. of Operational Beds New Bed Addition No. of Beds at Malar, Vadapalani facilities 237 4034 FY23 FY24 -256 456 5948 402 365 710 FY25 FY26 FY27 FY28 it Fortis Note: 1. *~2,200 beds addition is total new addition and does not factor in divestment of Malar, Vadapalani facilities; New Bed Addition Numbers include Manesar facility also 2. The chart shows total capacity addition in each year - ramp up of operational beds will be done as per the business growth and occupancy trends 24#25. • Beds Expansion - Plans to expand to ~6,000 beds Planned bed capacity addition of ~2,200 * beds till FY28, to achieve a total of ~6,000 operational beds. Majority of beds to be added at units located at Shalimar Bagh, FMRI, Mohali, Noida, Anandpur, BG Road and Amritsar The beds at the recently acquired Manesar facility are scheduled to be operational starting Q1 FY25. With the planned expansion, the following facilities will become large format hospitals: Mohali, Shalimar Bagh, FMRI, Noida, BG Road and Mulund In addition to the above, the Company continues to pursue inorganic efforts and evaluate portfolio optimization alternatives Jaipur Existing Beds: 275 Projected Beds: 325 Punjab Existing Beds: 774 Projected Beds: 1,306 (Mohali) NCR Existing Beds: 1,411 Projected Beds: 2,477 (Shalimar Bagh, FMRI, Noida, Manesar) Mumbai Existing Beds: 600 Bengaluru Existing Beds: 620 Projected Beds: 770 (BG Road) Kolkata Existing Beds: 335 Projected Beds: 470 (Anandpur) Note: *2,200 beds addition is total new addition and does not factor in divestment of Malar, Vadapalani facilities; New Bed Addition Numbers include Manesar facility also Fortis 25#26CLINICAL EXCELLENCE AT FORTIS KEY HIGHLIGHTS 26#27CLINICAL EXCELLENCE ~60,000 Cardiac Procedures¹ FY24 Performance* – Key Procedures 易 -29,000 Joint Replacements and + ~1,100 Transplants² Other Ortho Procedures ~7,800 Neuro and Spine Surgeries Note: *Annualized data for 9MFY24 actual procedure count 1Cardiac Procedures include Cardiac Surgery, Angiography, Angioplasty and other Cardiology procedures 2Transplants include Kidney, Liver and Bone Marrow Transplants 3Robotic Surgeries include Cardiac, Urology, Oncology, Gynae, Ortho and General Surgery + 3,500+ Robotic Surgeries³ 11,500+ Radiation Therapy Patients Fortis 27#28CLINICAL EXCELLENCE • . • • Fortis Hospital, BG Road, achieved a groundbreaking milestone by treating a 64-year-old woman who had a twisted and tortuous aorta. The patient had previously undergone aortic valve replacement and coronary artery bypass. surgery elsewhere. A team of doctors at Fortis Shalimar Bagh conducted the rare Bentall procedure to save the life of a 13-year-old patient who suffered a rupture of the aorta (the largest artery of the body). A multi-disciplinary team of doctors at Fortis Mohali saved the life of a 9-year- old girl child by conducting a 15-hour-long kidney transplant and bladder reconstruction surgery. Fortis Hospital, Mohali, successfully completed its first Heart Transplant Surgery and the third Deceased Donor Kidney Transplant Surgery. With this, Fortis Mohali established itself as the first private healthcare facility north of Delhi-NCR to conduct a heart transplant and as a Centre of Excellence for Deceased Donor Transplant. *Above data pertains to Q3 FY24 it Fortis 28#29AUGMENTING MEDICAL TECHNOLOGY/PROGRAMS ➤Fortis Hospital, Noida, introduced Uttar Pradesh's first most advanced and Artificial Intelligence powered, state-of-the-art Cath Lab. The equipment enables prompt and efficient diagnosis as well as treatment for interventional cardiology patients. ➤ Fortis Escorts Hospital, Faridabad inaugurated Neuro ICU and advanced Neuro Lab on the occasion of World Stroke Day ➤ Fortis Hospital, Anandpur strengthened surgical excellence with the launch of the cutting-edge Surgical Robot Fortis *Above data pertains to Q3 FY24 29#30LL APPENDIX 30#31GROUP CONSOLIDATED P&L - Q3FY24 Particulars (INR Cr) Revenue from operations Q3FY23 Q2FY24 Q3FY24 1,559.9 1,769.9 1,679.7 Other income Total income 11.7 13.5 6.8 1,571.6 1,783.5 1,686.5 Expenses 1,283.4 1,439.8 1,395.7 EBITDA* 288.1 343.7 290.8 Margin 18.5% 19.4% 17.3% Finance costs 33.4 31.8 33.0 Depreciation and amortisation expense 82.8 84.1 86.9 PBT 172.0 227.7 170.9 Share of profit/(loss) of associates and joint ventures (net) 2.6 1.3 4.5 Net profit/(loss) before exceptional items and tax 174.6 229.0 175.5 Exceptional gain** 11.5 3.7 7.7 Profit/(loss) before tax from continuing operations 186.1 232.7 183.2 Tax expense (credit) 44.0 48.8 48.9 Net profit/(loss) for the period from continuing operations 142.1 183.9 134.2 Profit/(loss) from continuing operations attributable to Owners of the company 129.6 173.7 134.7 *EBITDA includes other income, forex and exceptional/non-recurring expenses **Q3FY24 and Q3FY23 exceptional net gain related to reversal of impairment in an associate Company **Q2FY24 exceptional net gain related to the divestment of the Vadapalani, Chennai facility in July 2023 Fortis 31#32GROUP CONSOLIDATED P&L - 9MFY24 Particulars (INR Cr) 9MFY23 9MFY24 Revenue from operations 4,654.9 5,107.0 Other income Total income 47.9 28.5 4,702.9 5,135.5 Expenses 3,824.5 4,220.4 EBITDA* 878.4 915.1 Margin 18.9% 17.9% Finance costs 97.4 96.3 Depreciation and amortisation expense 234.0 250.3 PBT 547.1 568.5 Share of profit/(loss) of associates and joint ventures (net) 20.1 5.2 Net profit/(loss) before exceptional items and tax 567.2 573.7 Exceptional gain** 63.1 12.9 Profit/(loss) before tax from continuing operations 630.3 586.6 Tax expense (credit) 135.6 144.5 Net profit/(loss) for the period from continuing operations 494.7 442.1 Profit/(loss) from continuing operations attributable to Owners of the company 456.2 420.2 *EBITDA includes other income, forex and exceptional/non-recurring expenses **9MFY24 exceptional gain related to the divestment of the Vadapalani, Chennai facility in July 2023 and reversal of impairment in an associate Company **9MFY23 exceptional gain pertains to reversal of impairment in an associate Company Fortis 32#33THANK YOU 33