#1MAX Healthcare Investor presentation September 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 Financial Highlights Appendix 14 04 13 25 29 3#4MAX Healthcare Company Overview 4#5MAX Healthcare NCR Outside NCR Max Healthcare: India's second largest* hospital chain 280 Shalimar Bagh 538 402 BLK 378 J 17 Facilities ~3,400 Bed capacity ~85% Beds in metros Patparganj Vaishali Shareholding structure (as on August 31, 2021) Top Public investors (>1% shareholding) includes - Panchsheel¹ Lajpat Nagar 1,2 250 521 72 Saket Smart Gurgaon Noida¹ 29.9% • 47.0% Mumbai 328 220 200 Mohali¹,4 Bathinda 182 23.2% Dehradun Smallcap World Fund HDFC Mutual Fund SBI Mutual Fund Canara Robeco Mutual Fund Briarwood Capital Master Fund Nomura Ashish Dhawan Max Hospitals and medical centres Kayak Abhay Soi Public & Others Market Cap (as on August 31, 2021): ~INR 37,000 Cr *Based on publicly available information for listed companies (FY21) (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 #Global best practices Rewarded by growth Constant pursuit to strengthen management #Collaborative approach Patients World class infrastructure State-of-the-art technology Clinicians * Well defined clinical protocols BEING "WELL REGARDED" Employees MEANS... Investors * Focus on research and academics 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) 2009 Dr. Balabhai Nanavati Hospital, Mumbai(1) 2014 • Radiant-Max Healthcare merger and listing on BSE and NSE • Discontinuation of Max Multi Specialty Centre, Pitampura 2020 2021 Max Multi • Max Multi Specialty Centre, Max Super Specialty Pitampura • Max Multi Specialty Centre, Noida Hospital, Patparganj Specialty Centre, Panchsheel park 2002 2004 2000 Max Super Specialty Hospital, (East Block) Saket 2006 Max Super Max Hospital, Gurugram 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 • Raised INR 1,200 Cr equity through Qualified Institutional Placement (QIP) • Medcentre, Mohali (Immigration Department) • Acquired exclusive rights to a proposed 500 bed hospital in South Delhi for perpetuity Discontinuation of Max Multi specialty Hospital, Greater Noida Max Medcentre, Lajpat Nagar (Immigration Department) • Max Super Specialty Hospital, Vaishali (Pushpanjali Crosslay)(1) • Max Smart Super Specialty Hospital, Saket (Saket City) (1) (1) Inorganic expansion RADIANT LIFE CARE MAX HEALTHCARE 7#8MAX Healthcare Leading clinically comprehensive hospital chain with excellent research and academics foundation High end quaternary care facilities REALIZE Complex procedures performed including 3 JCI accredited X Transplants (1) Robotics surgeries Cardiac Neuro Orthopedic Oncology procedures (2) surgeries (3) surgeries(4) surgeries(5) FY21* 800+ 530+ 38,400+ 8,200+ 20,200+ 8,300+ State of the art infrastructure 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 Q4 FY21, given rest of FY21 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 • 430+ 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 Total beds per '000 Population Quality beds (1) 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 18% 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 Fortis Apollo (Hospital Business) Hospitals Manipal Hospitals Aster Hospital India - Higher health awareness (Hospital Business) Max Healthcare (1) High-end tertiary/quaternary beds | (2) Reported ARPOB for FY20 | Source: Kotak and E&Y analysis 6#10MAX Healthcare Dominant presence in the most attractive markets (2/2) Being metro-centric also positions MHC well to capitalize 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 Others 6.4% 7 30% 7% Ludhiana 6.1% 80% 6 5 6% Hyderabad (5-7% ] Mumbai (10-12%) Middle East Hisar Dehradun •Meerut 4.9% 4.9% CIS Jaipu 5% 60% Chennai (22-25%) Africa Lucknow Patna Guwahat 4 - 4% Ranchi 2.9% 7.0 40% 6.4 3 2.4% 3% Iraq 5.0 4.3 2 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 State-of-the-art Availability of senior medical equipment clinical talent Reputed for tertiary/ quaternary care High global and domestic connectivity 10#11MAX Healthcare Operating parameters Best in class performance parameters ARPOB(1) (INR/OBD) ('000) Occupancy (%) 60 50 50 51 81% 43 44 72% 41 41 41 39 65% 67% 67% 68% 65% 55% 56% Max Healthcare | Apollo Hospitals Fortis Max Healthcare I Apollo Hospitals Fortis I (Hospitals Business) (Hospital Business) I (Hospitals Business) (Hospital Business) Financial parameters 11% 29% 26% Pre-tax ROCE (2) (%) 24% 16% 10% 10% 4% 2% Max Healthcare Apollo Hospitals FY20 Fortis FY21 30 25 30 25 Operating EBITDA per bed (3,4) (INR Lacs) 45 23 23 19 35 55 18 12 24 Max Healthcare I Apollo Hospitals Fortis I (Hospitals Business) (Hospital Business) Q1FY22 (1) ARPOB calculated as Gross Revenue/Total OBD; Q1 FY22 Gross revenue excludes revenue from Covid-19 vaccination & related antibody tests; Max Healthcare Gross revenue excludes revenue from Max Lab operations; Apollo revenues grossed up for adjustment of doctor fees | (2) Indicative company level ROCE; Apollo's ROCE at consolidated level including Pharmacy; For Q1 FY22, Apollo's ROCE is calculated basis EBIT from consolidated performance and capital employed from standalone performance; Fortis EBIT computed from group consolidated P&L (3) Max Healthcare EBITDA margin excludes one-time transaction costs of INR 43 Cr in FY20 and INR 48 Cr in FY21 | (4) EBITDA per bed is annualized 11 basis occupied beds and excludes EBITDA from Covid-19 vaccination & related antibody tests and Max Lab operations#12MAX Healthcare Distinguished Board and a dynamic management team Distinguished Board of directors Ms. Ananya Tripathi Director, KKR Capstone Experienced and dynamic management team Mr. Abhay Soi Chairman and Managing Director Mr. Anas Wajid Senior Director - Chief Sales and Marketing Officer Ms. Harmeen Mehta Chief Digital and Innovation Officer at BT Group Plc Mr. Yogesh Sareen Senior Director & Chief Financial Officer Mr. Umesh Gupta Senior Director - HR & Chief People Officer Mr. Kummamuri Narasimha Murthy Chartered Accountant Ms. Vandana Pakle Senior Director - Corporate Affairs Mr. Prashant Singh Director - IT & Chief Information Officer Mr. Mahendra Gumanmalji Lodha Chartered accountant & Investment Professional Dr. Mradul Kaushik Senior Director - Operations & Planning Mr. Atulya Sharma Director - Legal, Comp. & Regulatory Affairs Mr. Michael Neeb Former President of HCA Healthcare Col. HS Chehal Senior Director & COO (Cluster 2) Dr. Vinitaa Jha SVP Academics & Research Mr. Sanjay Nayar CEO, KKR India Chairman and MD Non-Executive director Dr. Sandeep Buddhiraja Group Medical Director Chairman - Institute of Internal Medicine Dr. Abhaya Indrayan Chief Biostatistician, Academics & Research Independent director#13MAX Healthcare Key Growth Drivers 13#14MAX Healthcare Strong cash generation from operations INR 200+ Cr in Q4 FY21 + Headroom to raise debt given current leverage ~0.45 Net Debt / Operating EBITDA* as on June 30, 2021 + Demonstrated ability to generate high return on capital employed ~28.5% ROCE for Q1 FY22 Visibility on long term growth story *Rolling 12 months EBITDA Multiple avenues for future growth • Optimize Payor mix 1 2 Optimizing Existing Infrastructure • Increase utilization • Focus on tower specialties Strong financial profile to support expansion plans • 3.1 Brownfield Significant Increase in 3 Bed Capacity (>2x bed capacity in next 5-6 years) 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 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 - Q4 FY21 contribution margins stood at 60% Redeployment of funds to higher ROCE projects shall also generate incremental cash flows Ability to leverage balance sheet . . Net debt of the company reduced from INR 2,116 Cr as on June 30, 2020 to INR 459 Cr as on June 30, 2021 Predictable and growing free cash flow gives meaningful headroom to leverage balance sheet for growth As on June 30, 2021, Net Debt / Operating EBITDA* stood at 0.45 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 - Q1 FY22 ROCE stood at 28.5% 15#162 MAX Growth opportunity in existing facilities Healthcare Bed share Optimizing payor mix • 26% 37% 34% 2% 2% 5% 72% 64% 58% FY20 FY21 Q1 FY22 Institutional International Self Pay, TPA and Corporate • Consistent push for reduction in institutional business, moving 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 Covid-19 abatement, 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 2,300+ beds via brownfield expansion Indicative commencement timeline for brownfield beds ~5,700 200 300 200 250 300 111 350 329 3,371 100 190 Mohali Shalimar Bagh Nanavati Hospital - 2 phases* Saket Complex (Vikrant) - 2 phases Saket Complex (Smart) - 4 phases FY21 FY24 FY25 Further, planned brownfield expansions to be ROCE accretive FY27 FY28 Beyond FY28 Total Cost per bed ARPOB per bed (Q4 FY21) ARPOB per bed in 5 years (@3-6% growth per year) Annual ARPOB Occupancy EBITDA margin EBITDA per bed EBIT per bed Pre-tax ROCE INR 1.3 Cr INR 56 K INR 65K INR 75K INR 2.4 Cr INR 7Cr 72% -75% 24% -26% INR 41 Lacs - INR 53 Lacs INR 35 Lacs - INR 46 Lacs ~27% - 35% * 160 beds needs to be demolished before commencement of Phase 2 • Brownfield capacity expansion has lower capital employed per bed, quicker breakeven with lower risk leading to higher return on incremental capital employed with increased visibility • Valuable land bank within metros: ~10.7 acres at Saket in South Delhi and 3.9 acres at Juhu in Mumbai 17 17#183.1 MAX Healthcare Saket Complex has potential to be South Asia's largest private integrated healthcare complex with ~2,400 beds Saket Complex - Current status Existing Diagnostic Block Existing Service Block Existing OPD Block Vikrant Foundation Land Existing Max Saket TIL Saket Complex - Future Plans Total new beds - 1,600 Total beds in Saket complex - 2,370 New Saket Block Vikrant Block 1200 beds 200 beds West Block 900 beds East Block 300 beds Plans to create ~2,400 bed 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 ~500 beds at Vikrant Foundation post acquisition of exclusive rights to aid development and provide medical services at the proposed hospital 18#193.1 MAX Healthcare Nanavati Hospital set to be one of the largest private quaternary care complexes in Mumbai with ~770 beds Namavali Nige Nanavati Hospital - Future plans . • Plans to add ~440 net beds spread over 3.9 acres of land in the iconic Nanavati 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#203.2 MAX Strengthen existing network through asset light O&M arrangements and opportunistic greenfield projects Plans to operationalize ~1,000 beds each through asset light O&M arrangements and greenfield projects Healthcare Returns from hospital operations post revenue share with partner Max Heatlhcare 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 20 20#214 MAX Healthcare Develop asset light adjacencies: Max Lab - Targeting to be amongst the top 5 players in the industry in next 5 years Organized 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 organized 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) +90% 41 24 13 5 66 17 35 EBITDA* (INR Cr) 18% 21% 9% 7% 7.4 4.5 1.6 1.0 -0.5 -5% Q1 Q2 Q3 Q4 Q1 FY21 FY21 FY21 FY21 FY22 FY17 FY18 FY19 FY20 FY21 Q4 Q1 EBITDA EBITDA margin (%) FY21 FY22 145+ Partner-run collection centres 9 Company owned collection centres 120+ Phlebotomist At Site (PAS) 165+ Pick-Up Points (PUPS) 17 Hospital based Lab Management (HLMs) 14 Cities of operations 1,900+ Tests in portfolio Note: All operating numbers as of June 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 21#224 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 organized 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 Gross revenue (INR Cr) Rapid growth through scale up of direct to customer services 1.0 2020 2025 Max@Home: Over 7x revenue growth in 4 years +64% 77 70 Sharp recovery post initial dip due to Covid-19 63 28 27 23 10 T T FY17 FY18 FY19 FY20 FY21 Q4 FY21 Q1 FY22 Source: Redseer Consulting 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 daily call volumes 24x7 Customer Support ~800 managed 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 22#235 MAX Healthcare Digital platform enabling best-in-class omnichannel healthcare experience Underlying principles Hyper-personalized patient experience New age patient experience • Real-time ultra reliable low latency video consult 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 • 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 appointments and leads on website accounted for ~8% of overall revenue in Q1 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 23#246 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% Received shareholder approval in Q1FY20 590 348 EBITDA (INR Cr) • Q1FY22 EBITDA of ~INR 360 Cr more than FY19 full year combined EBITDA of MHC and Radiant of ~INR 348 Cr 360 253 263 143 -22 FY19 FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 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 Sharp recovery driven by: • 8% revenue growth in H2, post lifting of lockdown • Full year impact on FY21 EBITDA of the initiatives implemented in FY20, amounting to ~INR 80 Cr • New structural cost initiatives worth ~INR 108 Cr were implemented with ~INR 73 Cr flowing in EBITDA in FY21 24#25MAX Healthcare Financial Highlights 25#26MAX Healthcare Demonstrated best in class financial performance in last two fiscals Gross Revenue (INR Cr) 3,920 (11% 4,356 Sharp recovery post Covid-19 impact EBITDA (¹) (INR Cr) 590 515 360 348 2,320 1,561 49% 70% 1,385 1,161 263 37% 121 19% 326%) FY19 FY20 H1FY21 H2FY21 Q4FY21 Q1FY22 FY19 FY20 H1FY21 H2FY21 Q4FY21 Q1FY22 Margin (2) (INR Cr) 9.7% (5.0% 14.7% 8.3% (15.4% 27.2% (3.1%) 23.7% 24.1% וי FY19 FY20 H1FY21 H2FY21 Q4FY21 Q1FY22 . • • Q1 FY22 gross revenue at INR 1,385 Cr versus INR 1,161 Cr in Q4 FY21 (+19% QoQ). This includes revenue of INR 136 Cr from Covid-19 vaccination and related antibody tests post inoculation Operating EBITDA for Q1 FY22 was highest ever for 3rd consecutive quarter at INR 360 Cr versus INR 263 Cr in Q4 FY21 (+37% QoQ) Margin expansion was driven by high overall occupancy, significant uptake in Covid-19 vaccine administration, underpinned by impact of augmentation of clinical programs and structural cost initiatives implemented during FY20 and FY21 (1) EBITDA excludes one-time transaction costs of INR 37 Cr in FY19, INR 43 Cr in FY20 and INR 48 Cr in FY21; Numbers are post IND AS 116 | (2) Margin calculated on Net Revenue 26#27MAX P&L statement for the network Healthcare FY19 FY20 FY21 Figs in INR Cr Change Amount % NR Amount % NR Amount % NR over LY Gross revenue (inc. movement in unbilled) 3,920 4,356 3,881 (10.9%) Net revenue 3,599 100.0% 4,023 100.0% 3,629 100.0% (9.8%) Direct costs 1,566 43.5% 1,715 42.6% 1,508 41.6% (12.0%) Contribution 2,033 56.5% 2,308 57.4% 2,121 58.4% (8.1%) Indirect overheads 1,685 46.8% 1,719 42.7% 1,485 40.9% (13.6%) Operating EBITDA (post Ind AS-116) 348 9.7% 590 14.7% 636 17.5% 7.9% Loss on fair valuation of pre-merger holding of Radiant 196 5.4% under IND AS 103 Transaction cost 30 0.8% 43 1.1% 48 1.3% 10.8% ESOP (Equity settled scheme) 27 0.7% One time policy harmonization impact 5 0.1% Movement in fair value of contingent consideration 19 0.5% (3) (0.1%) 0.0% and amortisation of contract assets Reported EBITDA 299 8.3% 549 13.6% 359 9.9% (34.7%) Finance cost (net) 155 4.3% 215 5.3% 187 5.2% (12.9%) Depreciation and amortisation 186 5.2% 208 5.2% 216 6.0% 3.6% Profit before tax (42) (1.2%) 126 3.1% (45) (1.2%) Tax 18 Profit after tax (60) 0.5% (1.7%) (3) (0.1%) 50 1.4% 129 3.2% (95) (2.6%) Note: 2. 3. 1. The numbers for the previous period have been recasted 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 and INR 601 Cr in FY21 27#28MAX Healthcare End 28#29MAX Healthcare Appendix 1. Covid-19 Response 2. Network structure 29#30MAX Healthcare Appendix 1 Covid-19 Response 30#31MAX Healthcare Covid-19: Response and contributions Key contributions* : Infrastructure support 900+ Covid-19 beds occupied on an average during Q1 FY22 ~6,36,000 RT PCR tests done ~13,16,000 Vaccine doses administered HOTEL Patients treated ~33,000 at hospital ~2,800 at home ~1,150 at hotels Research Community support * As on July 31, 2021 45+ Covid-19 related projects initiated ~3,00,000 free meals served 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 *Operationalized India's one of the largest Covid-19 vaccination centers 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 Provided intensive training to frontline medical personnel #Strengthened digital platforms- *Significantly ramped up tele-consulting- ~14% of total consultations were digital in Q1 FY22 Developed remote monitoring capabilities, particularly during lockdown, in Tri-city 31#32MAX Covid-19: Performance update 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 underutilization 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 came down to ~70% levels during Jun-Jul'21 as Covid-19 cases declined 72 33 43 59 61 66 Occupancy (%) 77 79 79 71 66 69 69 FY20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Occupied bed share split (%) Jan-21 Feb-21 Mar-21 75 87 85 69 72 75 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Following the second wave of Covid-19, higher number of beds were allocated for Covid-19 patients. 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 recovered to pre-covid levels in July'21 13% 10% 7% 3% 1% 31% 36% 28% 19% 42% 52% 87% 93% 90% 97% 99% 69% 64% 72% 81% 58% 48% Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Non Covid-19 Covid-19 Non Covid-19 occupancy ¹ (%) 85% 80% 80% 96% 83% 79% 76% 79% 76% 73% 76% Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Occupancy calculated on the basis of beds dedicated to non Covid-19 for the respective month 32#33MAX Healthcare Appendix 2 Network structure 33#34MAX 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% Balaji Society (Max Patparganj) Valid till 2065 Medical Service Agreement with Society Devki Devi Society (Max Saket East, Onco day care center) Valid till 2064 98.53% 100% O&M / Medical service agreement BLK Hospital Max Lab Limited HBPL (Max Bathinda) (Max Mohali) ALPS Hospital Ltd. (Max Gurgaon) CRL* (Max Vaishali) (Max Noida) Saket City Hospitals Ltd. Valid till 2054 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 2051 Corporate structure as on June 30, 2021 Validity includes extensions available under the contract Medical Service Agreement Gujarmal Modi Society (Max Smart) Valid till 2105 MHIL - Max Healthcare Institute Limited; CRL - Crosslay Remedies Limited; HBPL - Hometrail Buildtech Private Limited 99.99% Radiant Life Care Mumbai Pvt. Ltd. O&M / Medical service agreement Nanavati Hospital Valid till 2043 Owned Partner healthcare facilities Managed healthcare facilities 34#35MAX List of network healthcare facilities Healthcare Name Location Description Max Super Speciality Hospital, (West Block) Saket Max Super Speciality Hospital, (East Block) Saket Max Smart Super Speciality Hospital, Saket BLK-Max Super Speciality Hospital, Rajendra Place Delhi Hospital Delhi Hospital Delhi Hospital Delhi Hospital Dr. Balabhai 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 June 30, 2021 35#36MAX Definitions Healthcare Term Gross Revenue Net Revenue Contribution 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 Indirect overheads Operating EBITDA EBITDA per bed ARPOB Major costs include - Personnel cost, 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 (itemized separately) which are accrued due to IND AS requirements, but are not operating in nature; Operating EBITDA divided by occupied bed days, annualized. Excludes incremental EBITDA from Covid-19 vaccination & related antibody tests and Max Lab 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 36#37MAX 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. 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 Gurgaon 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. For further information, please contact: For more information, visit www.maxhealthcare.in 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 37 32