#1METROPOLIS The Pathology Specialist Reaching Out RESPONSIBLY Investor Presentation - May 2022#2Safe Harbor METROPOLIS The Pathology Specialist This presentation and the accompanying slides (the "Presentation"), which have been prepared by Metropolis Healthcare Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. 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These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the healthcare industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2#3Q4 & FY22 Performance...#4FY22 Performance Snapshot 3. & گاه FY22 Key Highlights METROPOLIS The Pathology Specialist Revenue Rs. 1,228 Crores +23% YoY Non-Covid Revenue Rs. 1,036 Crores +35% YoY EBITDA (Before CSR, ESOP & one time acquisition cost) Rs. 362 Crores +20% YoY No. of Patients 13.4 Mn +37% YoY EBITDA Margin (Before CSR, ESOP & one time acquisition cost) 29.4% Including Hitech Diagnostics from 22nd Oct, 2021 Blood Tests | Diagnostics | Wellness No. of Tests 25.7 Mn +35% YoY 4#5Q4FY22 Performance Snapshot 3. & گاه Q4FY22 Key Highlights METROPOLIS The Pathology Specialist Revenue Rs. 306 Crores +5% YoY Non-Covid Revenue Rs. 268 Crores +7% YoY EBITDA (Before CSR & ESOP) Rs. 83 Crores -20% YoY No. of Patients 3.4 Mn +7% YOY EBITDA Margin (Before CSR & ESOP) 27.0% No. of Tests 6.6 Mn +1% YoY Including Hitech Diagnostics from 22nd Oct, 2021 Blood Tests | Diagnostics | Wellness 5#6Total Revenues Quarterly trend snapshot Covid Revenues Non-Covid Revenue 251.0 +7% 268.0 264.2 259.8 243.7 Q4FY21 Q1FY22 Q2FY22 Covid Revenue Contribution Q3FY22 Q4FY22 19% 17% 14% 14% 62.5 49.4 40.8 42.8 12% 38.0 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 +5% 326.8 291.7 302.6 293.1 305.9 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Including Hitech Diagnostics from 22nd Oct, 2021 METROPOLIS The Pathology Specialist Key Highlights ✓ Q4FY22 witnessed a disruption in business on account of omicron variant in the month of January 2022 ✓ Non-Covid business was impacted due to omicron disruption; Inpsite of the disruption Non-covid revenue grew by 7% on YoY basis in Q4FY22 Covid RT-PCR revenue was impacted on account of shift to self testing at home during omicron wave in addition to lower pricing by Government on covid tests 6#7Operational metrics - Q4 & FY22 9.8 No. of Patient Visits (In Mn.) +37% Revenue Per Patient (In Rs.) METROPOLIS The Pathology Specialist Total Business Non-Covid Business +7% -10% -2% +7% +2% 13.4 3.2 3.4 1,016 914 920 904 905 965 925 947 FY21 FY22 Q4FY21 Q4FY22 FY21 FY22 Q4FY21 Q4FY22 19.0 +35% No. of Tests (In Mn.) FY21 FY22 Q4FY21 Q4FY22 Revenue Per Test (In Rs.) Total Business Non-Covid Business +1% +3% +4% +7% -9% 25.7 6.5 6.6 524 479 452 467 433 451 447 418 FY21 FY22 Q4FY21 Q4FY22 FY21 FY22 Q4FY21 Q4FY22 FY21 FY22 Q4FY21 Q4FY22 ✓ Company recorded strong growth in No. of Patient visits & No. of tests on YoY basis led by covid as well as non-covid customers in FY22 ✓ Revenue per patient & Revenue per test for Non-Covid business grew on account of higher volume contribution of wellness tests in FY22 ✓ Revenue per patient & Revenue per test for total business dropped primarily on account of sharp decrease in covid tests prices during FY22 Including Hitech Diagnostics from 22nd Oct, 2021 7#8Strong traction in B2C business (Non-Covid) Annual Trend B2C Business Revenue (Non-Covid) +49% +12% -11% +18% FY18 FY19 FY20 FY21 FY22 METROPOLIS The Pathology Specialist Our B2C business continue to witness robust growth on account of our customer first approach, digital & marketing initiatives Including Hitech Diagnostics from 22nd Oct, 2021 8#9Share of B2C Business in Focus Cities (Non-Covid) at 60% in FY22 METROPOLIS The Pathology Specialist B2C Contribution in Focus Cities (Non-Covid Business) (Rs. in Crs.) B2C Ratio 48% 52% 56% 58% 60% +15.3% 269 233 258 195 344 FY18 FY19 FY20 FY21 FY22 ✓ Excluding Covid-19 revenues, our B2C contribution continues to increase ✓ Our aspirations is to achieve 65% B2C contribution in focused cities in coming years remains intact, driven by; Aggressive network expansion to go closer to the patient Integrated Brand building campaigns to establish Metropolis as a trusted brand in the mind of consumer and the doctor Building awareness amongst doctors for quality and service differentiators of Metropolis vs the unorganized sector. ➤ Obsessively monitoring customer experience and generating a Net Promoters Score (NPS) Including Hitech Diagnostics from 22nd Oct, 2021 6#10Well diversified test volume and value mix... 22% FY21 0.9% 36% Volume Mix (Total Business) 41% FY22 1.3% 25% 34% Volume Mix (Non-Covid Business) 16% 1.0% 45% 39% FY21 Value Mix (Total Business) METROPOLIS The Pathology Specialist FY22 6% In overall mix, value of specialized mix has reduced 13% 7% 14% 41% due to steep decline in covid test prices YoY 26% 29% 49% 56% 15% 1.4% 46% 38% Routine Semi-Specialized Value Mix (Non-Covid Business) Specialized Wellness & Others 7% 17% 9% 17% 42% 40% 34% 35% ✓ Our focus on promoting preventive checkups has led to increased volumes & revenue contribution from wellness tests in FY22 ✓ Our wide and extensive tests menu enables us to cater to every customer profile for routine to complex specialized tests Including Hitech Diagnostics from 22nd Oct, 2021 10 10#11Diversified Revenue contribution across Geographies... FY21 FY22 FY21 FY22 METROPOLIS The Pathology Specialist Revenue Mix between Focus, Seeding & Others Cities (Total Business) 19% C 59% 21% Focus Seeding 20% Revenue Mix between Geographies (Total Business) 6% 8% 28% 10% 4% 24% 54% 5% 60% 20% 58% 5% Others Revenue Mix between Focus, Seeding & Others Cities (Non-Covid) 20% C 59% 21% 60% C 20% 20% North South East West International Revenue Mix between Geographies (Non-Covid) 6% 8% 28% 8% 5% 26% 53% 5% 56% 5% ✓ Continue to focus on strengthening the Brand in Focus cities through increase in B2C share while improving the share of Seeding and Other cities through a healthy mix of B2B and B2C driven by our large Test menu ✓ Opportunity to increase market share in focus cities is very high especially through the B2C route and a combination of our young network along with improving revenue per center; this will create a long runway for growth Including Hitech Diagnostics from 22nd Oct, 2021 I 11#12Network Strategy Laboratory Network - MHL Service Network - MHL Hitech Network METROPOLIS The Pathology Specialist Total Network ARC Rationalization Period +509 centers Third Party PSCs +16 labs Owned PSCs 141 124 125 119 106 3,064 Labs 30 Labs Lab network Total 171 Service network Total 3134 30 70 2,731 2,336 598 2,555 498 704 141 575 3,064 1,650 520 Collection Centers 1,873 2,105 1,806 1,506 - 879 Own 66 centers Franchised - 4 centers 251 255 260 251 255 MHL Hitech MHL Hitech FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 We are on course to add 90 labs & 1,800 service centers by FY24. Plan to add 30 labs in FY23. Network Strategy Young Individual Patients Network - The average retail centre matures in five years. As the network matures, it is expected to contribute to short and mid term future growth. There is an opportunity for our franchisee network which is opened in last four years to grow as per matured centres. ✓ Asset Light Network - 92% of the centre network and 17% lab network is asset light. Major addition in the labs in the recent years has been through lab on lease model which is asset light with no capital requirement. Rationalization of Service Network Completed - During FY21, company optimized the service network leading to better productivity and efficiency as well as improvement in Management Bandwidth. ✓ Network Expansion - Started expanding network to newer and strategic locations 12 I I I#13Home visits services now covered in 100+ locations... Rs. Crs. Home Visits Revenue (Total Business) 31 31 Q4FY21 Q4FY22 Rs. Crs. 136 135 FY21 FY22 Total home visit revenue flattish on account of sharp drop in covid pricing despite increase in testing volumes METROPOLIS The Pathology Specialist Home Visits Revenue (Non-Covid Business) +12% 24 24 21 Q4FY21 Q4FY22 80 60 +23% 98 96 FY21 FY22 Increase in home visits service coverage to ensure healthy growth Increasing Coverage Home Visit services coverage extended to 100+ locations in Mar-22 from 60 locations in Mar-21 13#14Digital engagement driving huge growth in brand equity METROPOLIS The Pathology Specialist Digital strategy is playing important role in consumer engagement. 173% increase in digital users YoY FY22 Business Impact 151% increase in website views YoY METROPOLIS The Pathology Specialist Faster Growth in Home Visit revenue Hv ~Rs.102 Crs. Revenue in FY22 through leads generated via Digital mediums 61% increase in Digital driven Revenue 14#15Creating a Digital Ecosystem for all stakeholders METROPOLIS The Pathology Specialist ✓ Improving brand and service discover across all digital platforms like Google search, Social media to reach maximum customers ✓ Providing omni-channel experience to our customers on digital touch points like Website, App, chatbot, WhatsApp & IVR ✓ Improving app and website experience by adding new features like quick home visit booking, Track phlebotomist, Test recommendations and so on. For our Customers * DO * For our Partners ✓ Recently rolled out a "partner platform" for our B2B partners and franchisors to get ready access to services from Metropolis ✓ Roadmap to build home-visit, material and training modules ✓ WhatsApp bot to provide best support for the partners OB OUB Participate in Health Ecosystem ✓ Strategic business tie up with healthcare startups and health aggregators to increase brand reach and revenue generation ✓ Strategic corporate tie up with leading corporates to offer best in class wellness / diagnostic services For our Doctor Partners ✓ Planning to roll out digital platforms like Metro Bot to engage with Doctors fraternity ✓ Increase engagement with Doctors via online and offline mediums Make Customer experience more seamless ✓ Improve Phlebotomist Home-Visit application by adding more features like Phlebo tracking ✓ Implementation of Salesforce CRM company-wide ✓ Implementing CDP platform to improve personalised communication with customers 15#16Enhancing patient experience with an automated multi-channel experience METROPOLIS The Pathology Specialist Web Mobile App WhatsApp Chat Increased focus on driving enhanced patient experience via technology channels with a target to improve service levels and reduce service costs for Metropolis Experience Automation Experience Enhancement Automating patient queries via alerts, notifications. For example - report status, Sample tracking feature, collection status etc. Automating service request response via app, chatbots, IVR. Avoiding manual interventions, wait-times etc. Enhancing experience via new capabilities built across the technology interface . • Phlebotomist Tracking Real-time sample status Self-serve demographic corrections • • Easy to understand smart reports . Patient history graphs • Ease of Service Access Multi-modal service access across popular channels in addition to tele: Chat, Social, WhatsApp Automated responses to common queries for human-less closure Centralized company-wide CRM to ensure faster ticket resolution#17Steady Focus on Balance Sheet continues Debtor Days 41 31 Mar-21 Mar-22 OCF to EBIDTA 106% 98% FY21 FY22 Rs. In Crs Working Capital Days 4 14 METROPOLIS The Pathology Specialist We have continued to focus on collection efficiency and improved our Debtor days ✓ Working capital days has increased slightly due to increase in inventory & decrease in creditors Mar-21 Mar-22 Cash and Cash Equivalents 428 181 ✓ Cash & Cash Equivalents dropped on account of utilization of cash for Hitech Acquisition ✓ Company undertook debt of Rs. 300 crs to fund Hitech Acquisition. Repaid Rs. 41 crs during FY22. Gross debt stood at Rs. 259 crs as of Mar-22. Plan to repay by FY24. ✓ OCF to EBITDA stood at 98% in FY22 slightly lower than last year due to increase in Working Capital Mar-21 Mar-22 = WC Days (CA - Cash & Equivalents) – (CL – Lease liabilities - Borrowings) / Sales *365 OCF / EBITDA = CFO before tax / EBITDA 17#18Consolidated Profit & Loss Statement Profit & Loss Statement (Rs. Crs.) Total Revenue from Operations Q4FY22 Q4FY21 Y-o-Y FY22 FY21 Y-O-Y 305.9 291.7 5% 1228.3 998.0 23% Cost of Raw Material Consumed 71.3 70.2 276.1 252.2 Laboratory Testing Charges 1.4 1.6 6.9 5.4 Employee Expenses 62.6 48.7 227.6 190.9 Other Expenses 87.9 67.6 356.2 248.2 EBIDTA (before CSR, ESOP & one time acquisition cost) 82.6 103.5 -20% 361.6 301.3 20% EBIDTA (before CSR, ESOP & one time acquisition cost) 27.0% 35.5% 29.4% 30.2% Margin ESOP & CSR 3.2 6.7 11.3 13.0 One time cost of acquisition 0.0 0.0 1.4 0.0 Reported EBIDTA 79.4 96.8 -18% 348.8 288.3 21% Reported EBIDTA Margin 26.0% 33.2% 28.4% 28.9% Depreciation Other Income EBIT 18.0 14.1 63.2 45.9 1.5 2.1 13.4 12.0 62.9 84.8 -26% 299.1 254.4 18% Finance Cost 6.5 3.1 21.6 10.1 Exceptional Item Gain / (Loss)* 0.0 0.0 15.9 0.0 Profit Before Tax 56.5 81.7 -31% 293.4 244.3 20% Current Tax 16.3 20.3 74.7 61.0 Tax with respect to exceptional item 0.0 0.0 4.0 0.0 Profit After Tax 40.1 61.3 -35% 214.7 183.3 17% PAT Margin 13.1% 21.0% 17.5% 18.4% Profit After Tax (Normalised) 40.1 61.3 -35% 202.8 183.3 11% PAT Margin (Normalised) 13.1% 21.0% 16.5% 18.4% *Exceptional Item is on account of settlement with Global Hospital of past dues METROPOLIS The Pathology Specialist ✓ EBITDA was impacted by on account of the following:- Investments in digitalization & marketing in a bid to improve customer experience and faster growth. Increase in employee cost on account of widening of leadership team and front-end staff • Investment in lab expansion Drop in covid margins due to price rationalization by Government ✓ Costs related to investments in digitization and marketing to partly continue in FY23 18#19Consolidated Balance Sheet METROPOLIS The Pathology Specialist Assets (Rs. Crs.) Mar-22 Mar-21 Equity & Liabilities (Rs. Crs.) Mar-22 Mar-21 Non-current assets 1,137.2 396.0 Equity 888.2 708.1 Property, Plant and Equipment 139.2 115.1 Equity Share capital 10.2 10.2 ROU Assets 355.5 103.1 Other equity 876.0 696.4 Goodwill 454.7 90.3 Non Controlling Interest 2.0 1.5 Other intangible assets 109.5 34.6 Intangible assets under development 5.8 0.0 Financial Assets (i) Investments 1.8 1.8 Non-current liabilities 340.6 92.4 (ii) Loans 0.0 0.1 Financial Liabilities (iii) Other Financial Assets 34.7 12.6 (i) Borrowings 158.7 0.0 Deferred Tax Assets (Net) 9.8 17.1 (ii) Lease Liabilities 82.6 78.9 Other non-current assets 0.3 0.7 (ii) Other Non-Current Liabilities 0.9 1.2 Non-current tax assets (net) 25.8 20.7 Provisions 11.7 8.1 Deferred tax liabilities (Net) 86.7 4.2 Current assets 393.1 608.5 Inventories 51.1 40.5 Current liabilities 301.5 204.0 Financial Assets Financial Liabilities (i) Investments 13.8 8.3 (i) Borrowings 99.9 0.0 (ii) Trade receivables 135.5 123.0 (ii) Lease Liabilities 37.4 33.3 (iii) Cash and cash equivalents 66.0 386.6 (iii) Trade Payables 103.2 110.6 (iv) Bank balances other than (iii) 101.0 33.1 (iv) Other Current Financial Liabilities 23.7 25.3 (v) Loans 0.1 4.1 Other Current Liabilities 5.4 14.6 (vi) Other Financial Assets 11.5 0.6 Provisions 8.9 7.6 Other Current Assets 14.3 12.2 Current tax liabilities (Net) 23.2 12.5 TOTAL ASSETS 1,530.3 1,004.4 TOTAL - EQUITY AND LIABILITIES 1,530.3 1,004.4 19#20Consolidated Cash Flow Cash Flow Statement (Rs. Crs) Profit Before Tax FY22 FY21 293.4 244.3 Adjustments for Depreciation and other items 58.8 76.8 Operating profit before working capital changes 352.2 321.2 Changes in working capital -16.4 -15.3 Cash generated from operations 335.8 305.9 Direct taxes paid (net of refund) -82.5 -56.8 Net Cash from Operating Activities (A) 253.3 249.0 Net Cash from Investing Activities (B) -737.6 61.7 Net Cash from Financing Activities (C) 162.5 -32.7 Net Change in cash and cash equivalents -321.8 278.0 METROPOLIS The Pathology Specialist 20 20#21Metropolis is well placed#22Doctor recommendation & not price is the key determinant for acute patients METROPOLIS Metro Cities % of respondents (top 4 criteria) Doc recommendation and not price is the major determinant of acute uptake 62% Doctor recommendation 57% 43% 55% 40% 36% 30% 51% 100% 90% 27% 22% 20% 80% 20% 70% TAT Accuracy Brand of results Perception Convenience Brand TAT Quality Perception Quality Doctor Recommendation Convenience Price Brand Perception test results Quality Accuracy of The Pathology Specialist 60% 50% Acute Patients are highly influenced by doctors III Chronic I Influenced by doctos Preventive Self-book 40% 60% 60% 50% 30% 40% 33% 20% 40% 40% 35% 33% 25% 20% 20% 10% 0% Doctore recommendation of results Accuracy Price TAT Convenience Price Relationship Doctor with labRecommendation Price Convenience Relationship Accuracy of with lab test results Acute Acute - Source Bain & Company ✓ Chronic Preventive ✓ Acute Patients are the most influenced by doctors and least influenced by price ✓ Chronic Patients are moderately influenced by doctors as well as price Wellness Customers are the least influenced by doctors and most influenced by price 22 22#23Metropolis is well placed Category Doctor Influence Price Factor Online aggregators Impact METROPOLIS The Pathology Specialist Acute Patient Chronic Patient Preventive Customers Highest Lowest Lowest I Appx. 80% of the volumes at I METROPOLIS The Pathology Specialist Well placed to tackle increased competition Metropolis comes from acute patients which are highly influenced by doctors where we have a strong foothold ✓ Acute patients are least concerned about pricing as improvement in their health is their immediate priority ✓ Hence, a major chunk of revenue for metropolis is stickier & sustainable in nature I I I | I I I I I I I I I I I | I I I I I Moderate Moderate Moderate Lowest Highest Highest Appx. 18% of the volumes at Metropolis comes from chronic patients which are moderately influenced by doctors and price ✓ Our strategy to protect disruption in this segment is to launch loyalty benefits for chronic customers as they require tests at regular intervals ✓ Loyalty benefits will help us to make our chronic patient business stickier in nature as they will find no value by switching over to other player Appx. 2% of the volumes at Metropolis comes from preventive customers who opts for wellness tests The segment within wellness which is facing highest disruption is budget wellness while Metropolis has always focused on premium wellness Premium wellness customers tend to go for quality and not price. Hence, we expect our premium wellness segment to grow sustainably I 1 I I I I I | I | I I | I#24Mumbai continues to be a key market for us 252 Service Network in Mumbai +12 264 +18 282 +59 341 FY19 FY20 FY21 FY22 Excluding doctor bleeding points METROPOLIS The Pathology Specialist Mumbai is a key market for Metropolis with strong doctor & customer connect +150 491 FY23e ✓ Centres in Mumbai continue to be highly profitable even after increasing competition in the city in FY22 ✓ Expect strong profitability in Mumbai to continue given the strong brand visibility we enjoy in the city ✓ Plan to add 150 service centers in FY23 in Mumbai to further strengthen our foothold in the city and go nearer to our customer 24#25Strong Productivity from new centres in focus cities Service Network in Focus Cities Productivity of new centres keeps on increasing +419 +24 +15 487 502 526 +130 656 FY19 FY20 FY21 FY22 1,075 FY23e METROPOLIS The Pathology Specialist Strong expansion plan across focus cities ✓ Focus cities for Metropolis include Mumbai, Pune, Chennai, Bengaluru & Surat ✓ Productivity for new centers in its first 12 months continue to increase in most of the focus cities where competition intensity has increased the most Plan to add 419 service centers in FY23 in the focus cities to capture the growth opportunity across the focus cities 25#26Way forward...#27Way Forward... Network Expansion ☑ . M M METROPOLIS The Pathology Specialist Added 16 labs & 509 network centers in FY22 of planned addition of 90 labs and 1,800 network centers by FY24 to strengthen our leadership position in existing geographies and build Metropolis brand in new geographies Focus on Home Visits Added 100+ locations for home testing in FY22. Will continue to increase coverage to to make Metropolis the Go-To brand for Home Testing Specialized Leadership Team We inducted a number of senior level personnel during FY22 to have clear focused approach. Will continue to expand leadership team to realize full potential of market opportunities Deeping Digital Touchpoints Deepening Digital touchpoints through engagement with Stakeholders to become a end- to-end Digital service provider Margin Expansion Increase Margin profile through higher contribution of B2C business, specialized Tests and Home Testing coupled with higher efficiency through digitization and automation Hitech Integration Integrate Hitech operations with Metropolis to extract synergistic benefits while strengthening the brand in South India 27#281. Network Expansion Plan - 90:30 Project* Metropolis Network Expansion Plan Laboratory Network +72% 125 90 215 FY21 Addition over 3 years ✓ Expand to existing & newer locations - FY24E Aim to expand the service network to existing locations to strengthen our leadership position as well as enter newer strategic locations to penetrate in newer market Fill vacuums in the state of MP, Maharashtra, Gujarat, UP, Orissa, Jharkhand, Telangana and AP. ✓ Focus locations for expansion - ✓ Dedicated team - A separate team to implement the project ✓ Make Metropolis a nation-wide Brand - Vision to make Metropolis a Go-To-Brand for customers any testing needs *90:30 Project means 90 labs in 30 months Service Network METROPOLIS The Pathology Specialist +70% 4,355 1,800 2,555 FY21 Addition over 3 years FY24E | Benefits of 90:30 Project: ✓ Faster commissioning of labs leading to early monetization ✓ Availability of larger test menu to wider & newer market ✓ Increasing the visibility & penetration of Metropolis Brand I I I ✓ EBIDTA margins back to Group level in 2.5 years through better productivity which was earlier at 4 to 5 years for greenfield labs 28#292. Driving growth via digitally driven, asset-light home-visit segment Digital demand generation Integrated CRM to provide omni- channel support Instant chatbot support Digital enabled phlebotomist to give a seamless collection experience Status tracking and smart reports in website and app End-to-end digitally enabled home-visit Captured via Metropolis website and app Advanced backend systems to logistics optimisation Targeting 15% contribution from digital channels by end of FY22, increasing to 33% over next 3 years Capturing Changing Demand Covid has brought a strong shift in "At-home" consumption of healthcare services METROPOLIS The Pathology Specialist Asset Light Rapid scale up via technology drive processes + 3rd party network 2 1 Margin accretive Home Testing enjoys a better margins profile improving the overall profitability of the business 3 MARK OF METROPOLIS ASSURANCE Recipe to enter "Bharat" Expansion into fast growing tier 2/3 cities of India which are still largely "unorganized" 4 5 Productivity + asset-utilization Driving demand beyond immediate catchment area of existing centres 29#303. Deepening our digital touch points, capability throughout our value chain METROPOLIS The Pathology Specialist 40 Digital Customer Engagement: Launching an end-to-end online journey for customers on Metropolis Website and App. Digitally engaging customers and partners Digital Doctor Experience: Launched a chatbot (Metrobot) to I support doctors in providing enhanced services to patients Optimizing online presence: Optimized digital presence across search and local discovery services to drive customers in our centers Increased core system capacity by 110% Scaling up operational capabilities Digitization Digitizing distribution & logistics: Launched Unified Patient Information System leading reduced time for data entry, pre- processing and enhanced staff productivity Automation Upgradation Scaling up technology infrastructure Digitizing Customer Support: Launched custom built CRM to provide omni-channel customer support with high agent productivity Delivered 99.5% uptime with no major outage Establish Information Security & Data Privacy Framework based on ISO27001 Consolidate cloud infrastructure to remove bottlenecks Investing in strong technology talent Enabling our phlebotomists: Launch "Home-visit app" for our phlebotomist leading to higher productivity and enhanced customer experience -In near term- Our focus is to become an end to end digital service provider not only for our customers, but for all our stakeholder including doctors, vendors and healthcare partners 40 30#314. Levers for Margin Improvement & Cost Efficiencies Increased Home Visits Increase Home Visits revenue with focused marketing initiatives and expanding the service coverage Increased Utilization and Product Mix Higher utilization of Labs and increase in patient visits coupled with superior product mix Automation Automation & Digitization across all processes to control unnecessary costs 50 05 04 H0 01 Levers for Margin Improvement 03 60 02 METROPOLIS The Pathology Specialist Cost Efficiency Initiatives Encouraging innovation and critical thinking leading to operational & cost efficiency Increased Revenue & Throughput Increased revenues leading to economies of scale benefits consequently leading to robust margins 31#325. Hitech Integration Hitech Diagnostic Centre Revenue Rs. (In Crs.) Covid Non-Covid +15% 124 123 50 83 78 71 50 22 METROPOLIS The Pathology Specialist Revenue strategy to aid double digit growth ✓ Dual brand strategy in Chennai while single brand in rest of TN & Karnataka. Plan to launch 100 centers in FY23 ✓ Increasing contribution of speciality tests by Widening the Test Menu and improve the Product mix. ✓ Boost sales by extending Metropolis' digital marketing, app, website and other tools to enhance effectiveness of Hitech's sales effort 100 74 ✓ ✓ FY18 FY19 FY20 FY21 FY22 Using Hitech's local lab infra, improve TAT for customers. Wellness is a small portion in Hitech currently as against around 7% wellness contribution of Metropolis. Target to increase wellness to Metropolis level. Key Financial Highlights of Hitech Diagnostic Centre ✓ Hitech's non-covid business grew by 35% in FY22 to Rs. 100 crs while covid revenue dropped by 56% in FY22 to Rs. 22 crs. ✓ Non-covid revenue contribution stood at 82% of the total revenue in FY22 which is sustainable in nature ✓ This robust performance is on the back of its strong B2C connect Key levers to increase margins Increase B2C revenue mix from current 65% to over 70% Raw Material cost synergies in procurement with economies of scale Better Lab utilization with higher volumes ✓ Rationalization in Infrastructure, manpower, admin & logistic costs Usage of Metropolis IT systems and processes to improve productivity Margin is expected to grow by 3-4%. 32#33Overview#34We are Metropolis: The Pathology Specialist Vision To be a respected healthcare brand trusted by clinicians, patients and stakeholders. Positively impact lives of patients in their most anxious times and turn their anxiety in to assurance. Mission Helping people stay healthy, by accurately revealing their inner health INTEGRITY is in our VEINS EMPATHY is in our BLOOD ACCURACY is in our DNA METROPOLIS The Pathology Specialist 1 40+ Years of Credible Operations Leading Diagnostic player in India 원 4,000+ Tests & Profiles Presence in 19 States & 210 Cities 19 Mn Tests & 10 Mn Patient Visit in FY21#35Journey to Leadership Position First Referral Laboratory Set- up by Founder & Chairman Dr. Sushil Shah Ameera Shah takes charge First major acquisition - Sudharma (Kerela) Introduced Home Service Vertical Secondary transaction by Foxcreek Investment Limited (an affiliated company of Warburg Pincus) 1981 1992 2001 2006 2010 2013 Commenced Clinical Research Services Capital infusion by ICICI Ventures Expansion to developing African countries Exit of Warburg Pincus, management control by promoters and entry of Carlyle I I I 2015 2016 New professional management team Rollout of Metropolis retail strategy METROPOLIS The Pathology Specialist Strong Thrust on Retail frontend Expansion First PPP initiated Successful listing on Indian Stock Exchanges 2018-2020 2020-21 ✓ 1st private diagnostics I I lab in India to start testing for Covid-19 Acquired Hitech Diagnostics Foundation 1981 to 2001 Building Pillars of Business 2001 to 2015 Transformation and Expansion 2015 Onwards 35#36Three decades of Delivering Value to Stakeholders METROPOLIS The Pathology Specialist TEST MENU 1 Leadership Position Across Industry ACCREDITATION & QUALITY SCORES ($) ROCE INFRASTRUCTURE + REVENUE PER PATIENT S- CUSTOMER EXPERIENCE SCORE METROPOLIS Focus Area REALISATION PER PATIENT SPECIALITY BUSINESS At INCREASED PRODUCTIVITY OF YOUNG NETWORK 36#37Key Drivers for Growth 01 Industry Growth 05 Expansion Plan 02 Value Chain 06 Quality 03 07 Business Model People 04 08 Service Network Digital Transformation METROPOLIS The Pathology Specialist 37#381a. Diagnostic Industry Poised to grow... Indian Healthcare Industry 6.0% 9.0% 4.0% Healthcare Delivery - Hospitals 13.0% Pharma Medical Devices Diagnostics 68.0% Health Insurance Diagnostic Industry highly fragmented Source IIFL Diagnostics Report Size of Indian Diagnostics Market Source IIFL Diagnostics Report (in Billion Rs.) METROPOLIS The Pathology Specialist Indian Diagnostics Industry Breakup +11.6% 924 776 42% +16.4% 596 377 240 FY12 FY15 FY18 FY20 FY22E 35%-40% 17% 37% ■Hospital Based Labs ■Standalone Centers ■Diagnostic Chains 46% Pathology Radiology 58% Diagnostic Chains Presence 60%-65% ■Regional Chains Pan-India Chains 38#391b. Top players to continue to acquire market share of standalone centers Brand Awareness Increased brand awareness amongst patients and customers towards quality, reliability and test accuracy METROPOLIS Service + Scale The Pathology Specialist Factors leading Consolidation ספסן Large Test menu Large Test menu by organized diagnostics chains Specialized offerings Increased awareness of specialized tests, bundled test profiles and wellness packages 39 Less than 20% of the Diagnostics Sector in India is organized with limited pan India presence and focus on Quality Parameters in Testing Metropolis is amongst the Front runners for Consolidation Established track record of successful acquisition and integration in India and overseas#402.Presence in key pockets of Value Chain Diagnostic Industry - Fragmented Technician Run Lab Pathologist Run Lab Hospital Run Lab Leading Diagnostics Chains at an advantage Years of experience, brand value and delivering value to all stakeholders Highly Fragmented Market Low Quality Standard Low on Technical Qualifications & Accreditations (99.9% labs remain un-accredited) Non-Compliant: Governance, Legal, Medical No Technology Up-gradation No Customer Service Un-sustainable and un-scalable business model + High Quality Standards with Large Test Menu Customer Convenience Highly Compliant w.r.t Governance, Legal & Medical regulations Sustainable and Scalable Business Model Routine Test Majority Diagnostic Players + Moderate Competition + High Margins in % Semi-Specialized Test Few Focused Players + Intense Competition and Highly Commoditized + Packages and Test Menu is Key Specialized Test Few Players as market demands high accuracy and Quality Parameters + METROPOLIS The Pathology Specialist Metropolis Focus Presence across Value Chain as we are a National Player Focus on High Value added Specialized Test Resulting High Quality Earnings and Profitability Metropolis Test Mix FY22 Total Business Volumes Mix Value Mix Routine 41% 14% Semi Specialized 34% 29% + Specialized 25% 49% High absolute margin but low volumes Wellness 1% 7% 40 40 Low Competition#413. Hub & Spoke Model to scale efficiently Individual Patient (B2C) Patient Collection Centres Home Collection יוי Express Lab Collection of Specimen across multiple locations Delivery to our Clinical laboratories for Diagnostic testing שת RRL/Satellite Lab Global Reference Lab (GRL) انا Third Party Lab / Hospitals/ARCS Greater Economies of Scale Enhances consistency of our testing procedures I METROPOLIS The Pathology Specialist == Patient Leverage Widespread network to compete with Local Diagnostic Providers 41 Wholesale (B2B)#424.Patient Centric Network More than 4,000 Test's & Profiles Present in 19 States & 210 cities METROPOLIS The Pathology Specialist Global and National Quality Accreditations Over 10,000 Patient Touch Points 40+ Years of Credible Operations Why Metropolis ? Conclusive Diagnosis with Large test Menu backed by Highest standards of Quality 1 000 Global Reference Lab in Mumbai 13 Regional Labs 10 in India; 3 Outside India 171 Labs 141 Labs Metropolis 30 Hitech 242212 3,134 Collection Centers 255 Owned PSC's 2,105 3rd Party PSC's 704 ARC's 70 Hitech Collection Centers Customer Focused Services with convenience and test accuracy at the core of service standard Large Un-Paralleled Service network with Pan India Presence Routine + Semi-Specialized + Specialized ~4,000+ Test ~40,000 Sq. Ft Routine + Semi-Specialized + Few Specialized ~500+ Test ~8,000-10,000 Sq. Ft Routine Tests ~25-150 Test ~1,000-2,500 Sq. Ft ~200 1,000 Sq. Ft - Consistency in operations in every single visit from seamless blood collection, hygienic collection setup to timely report delivery 42#435. Asset Lite Expansion Plan Asset Light Model APSC/ DAPSC Lab on Lease Network Expansion Strategy METROPOLIS The Pathology Specialist Doctor Bleeding Point (DBP) ✓ Focus on Asset Light Model to achieve Geographic Expansion with High Scalability ✓ The A-PSC and D-APSC Model allows us to grow our revenues by providing management and branding support while continuing to focus on increased penetration in our PSCs ✓ Better Leverage of our Existing Infrastructure by establishing a wider geographic reach which will enable customer base expansion and improvement in profitability matrix ✓ Establish strategic partnerships with 3rd Party Patient Service Centers in India, Africa and Middle East to boost our Geographic reach Increase in Customer Base Geographical Expansion APSC Associate Patient Service Centers, DAPSC - Metropolis Branded Patient Service Centers, DBP - Doctor Bleeding Point 43#446a. Quality in Core Pioneers in Latest Technologies METROPOLIS The Pathology Specialist Quality Scores of 98.5% in 2018-19 by College of American Pathology Large Investments in Information Technology Focus on Governance and rigorous audit methodology Key Focus on social impact in community Quality protocols following global standards 99.9% of industry labs remain un-accredited with lack of minimum standards in the industry Best medical talent trained in the Metropolis way Talent in the industry remains un-trained with no benchmarks of minimum standards Trust & Sustainability of our Brand is "CRITICAL TO OUR SUCCESS" Quality of materials used are USFDA or CE marked Commonly used materials by industry labs are low quality Patient experience score as per NPS is at 91% Patient experience in industry labs is of poor infrastructure, lack of hygiene and safety and un-professional service Ethical philosophy of putting patient first Common practice in industry is to take shortcuts to enhance profit 44#456b. Globally Compliant Quality Standards और अ अंशशोधन OARD FOR TESTING AND CAL प्रयोगशाला परीक्षण राष्ट्रीय GATION LABC प्रत्यायन वाड •भारत- NABL "Global Lab Accreditations" CAP ACCREDITED COLLEGE of AMERICAN PATHOLOGISTS KENYA CCREDITATION SERVICE KENAS ISO 15189 ACCREDITED METROPOLIS The Pathology Specialist No. of Audits Conducted by PAC Team MEDICAL LABORATORY KENAS/ML/XX ✓ Mumbai Lab is CAP accredited since 2005 *(College of American Pathologists, global gold standard in laboratory accreditations) NABL Accreditation follows ISO-15189 Standard and is recognized by ILAC & APLAC GRL and 11 RRLs have NABL accreditation. More than 75% reports are generated by accredited labs. Many of our doctor's are assessors, lead assessors for NABL. ✓ Some senior doctors are committee members of NABL, WHO, Government & NGO committees. MARK OF METROPOLIS ASSURANCE FY 18-19 1312 19-20 1,057 20-21 21-22 583 988 ✓ PAC Team: Special Pre Analytical Care Team constituted as part of the Quality Assurance Team ✓ This team conducts thorough internal audits as per NABL Checklist to ensure compliance for our collection centres and facilities GRL CAP Proficiency Testing Score 98.1% 98.5% 98.2% 98.5% 99.0% 99.0% 99.0% 97.0% H 2015 2016 2017 CAP EQAS 2018 2019 2020 Industry Benchmark 2021 2022 45#467. People are our greatest asset Organization Strength Leadership Team 1 aligned to vision of the company. Business models at par with changes 1. Leadership 2 in the fields of Technology & Healthcare and agile structures supporting the operating model. 2. Decision 5. Culture making and METROPOLIS The Pathology Specialist Organizational Imperative 1 Investment in future leaders across levels and ahead of time. structure 2 Strengthening Structures to support objectives. Clear roles and accountabilities Challenging Work environment. Upgrade Capabilities & Skills 3 Clear aligned Performance and Purpose 3 create Talent Edge for MHL Business Strong scientific team lead by MD 4. Work 3. People Doctors & Pathologist. processes and systems Leverage Technology and 4 Innovation at every stage. HR Management system for Superior execution of 4 automated process ensuring real time employee related data. Learning management system for upskilling the talent 5 Strong Culture and Equal opportunity workplace. 4300+ Skilled Member Base | Female Male Ratio- 40:60 | 214 Doctors | 2048 Scientific & Technician Team | Over 60% Millennial workforce programmatic work processes Build shared purpose and high- 5 performance behaviors. Leverage People, Process & Platform capabilities as unique differentiators for change 46#478. Leveraging IT for Competitive Advantage 1 $ $ $ 2 3 METROPOLIS The Pathology Specialist 4 Improving Business revenue generation capabilities Cost Saving & Optimization IBM Watson Campaign Automation will help improve in additional leads and tracking Lead Management system will help improve lead conversion rate ✓ Data Analytics model on customer data will improve Cross-Sell and Upsell Launching a Pricing Engine for better Revenue Assurance Payment Platform improving controls in Cash Management Process Network Bandwidth Optimization (SD-WAN) ✓ ✓ Improved Operational Efficiency Improve Customer Experience data Mobility Zero Data Loss; 100% replication in remote location Implementation of Sample tracking process to Improve Visibility of Customers & Turn Around Time (TAT) of reports. Automating HR processes through HRMS for better tracking and possible productivity. Introduction of Learning Management System to training and development goals. Automated Quality System to Applications consumer's ease of access for Service CRM implementation will help improve NPS Feedback Management will increase percentage of patient providing instant feedback and rating track quality standards across the group 47#488a. Digital Transformation to improve efficiency 1 Standardization Achieve standardization across our operations 5 +5 Patients & Customers Provide convenience to our patients and customers, by allowing them to book appointments, complete 199998 ११११ registration and access test reports online | 2 Reduced Errors Reduce incidence of errors due to human intervention 3 Technical Operations Monitor Technical Operations through enhanced IT Systems Performance Metrics 4 Closely track our key performance metrics Our information technology system allows us to fully Integrate and Automate processes ranging from Registration, Bar-Coding and Billing of specimens to Analysis and Reporting of Test Results METROPOLIS The Pathology Specialist 48#49Future Strategy 01 Increase Services + 02 Increase Scale METROPOLIS The Pathology Specialist 49#50Customer Centricity: In everything we do METROPOLIS The Pathology Specialist 01 02 03 04 Easy to Interpret Test Report We offer our patients a Detailed Test Report which covers Result Trend Analysis and Patient Specific Interpretations and comments by our Doctors for certain tests and conditions Sample Collection from Doorstep We have increased scope of our Home Collection service to ~200 cities in India Conclusive Diagnosis We also have a policy of ensuring Conclusive Diagnosis to our patients, even if it involves incurring additional costs for us, by way of Re-Checks and Reflex testing on alternate technology Digital Access We have developed a Mobile Application For scheduling house calls Accessing Test reports Receiving Test Reminders Online requests for Billing Information 50#51Sustainable Growth across Network METROPOLIS The Pathology Specialist Criteria High Potential Market Metropolis has significant presence and operational experience in these cities Network of 210 Cities % of Revenue for FY22 (Total Business) Focus Cities Profitable Engines 61% (Mumbai, Pune, Chennai, Bangalore, Surat) v High Growth Potential Market Core focus of Metropolis medium to long term growth ✓ Potential to become 'Focus Cities' Seeding Cities High Growth Engines 19% Strategy ✓ Increasing productivity of Collection Centers Enhancing our Laboratory Capacity and Test Menu by adding Latest Machines and Technology ✓ Expanding B2C share of Business ✓ Enhance customer experience via new value-added initiatives ✓ Doctor Engagement through medical awareness initiatives ✓ Combination of B2B / B2C strategy to nurture seeding cities into focus cities over time Huge potential for Metropolis to increase the number and productivity of Patient Touch Points Targeted marketing activities to strengthen the Metropolis Brand Tier II/Tier III Cities Other Cities Future Growth Engines 20% (Lab Towns + Non-Lab Towns) ✓ Intend to leverage the Asset Light Model for expanding service network Focus to grow ARC Network to service institutional customers Nurture to Seeding Cities 51#52Focus on Profitable B2C Business Increase B2C sales mix Deeper Network Penetration Strengthen Metropolis Brand ☆☆☆ METROPOLIS The Pathology Specialist Productivity of existing young network Wellness initiatives for consumers Deeper centre penetration in Focused Cities on back of strong brand recognition to drive Individual patients to Metropolis Centres by promoting convenience. Expand Branded third- party PSCs to help create increased visibility and presence with limited investments and do a Direct to Patient approach. Increase number of referring doctors through a more efficient sales force leading to higher number of footfalls per centre. Creating an easy and engaging way for consumers to directly interact with Metropolis and start making decisions about their own inner health. 52 52#53Growing Inorganically- A Win-Win Strategy Brand Strength Metropolis Brand allows the Acquired Entity to strengthen its position in the Local Market E METROPOLIS The Pathology Specialist Build Industry Best practices Introducing Standardized Machines and SOPS in a phased manner resulting in efficiency and quality enhancement Access to Metropolis Network Providing acquired entities access to Metropolis Sales and Marketing Network to improve the Customer experience Со Test Menu Enhancement Introducing Metropolis range of Test Menu to increase the capabilities of the Acquired Entity and thereby Customer experience Established Track Record of Successful Acquisition and Integration 53#54Successful Track Record of Inorganic Strategy: 24 Acquisitions in 18 years METROPOLIS The Pathology Specialist Few of the Acquired Companies Year of Acquisition Location Revenue at the time of acquisition Revenue for FY22 Sudharma Metropolis Health Services Private Limited 2003 Kerala Rs. 1.8 Crores Rs. 58.9 Crores Golwilkar Metropolis Health Services (India) Private Limited 2006 Pune Rs. 3.9 Crores Rs. 64.4 Crores Desai Metropolis Health Services Private Limited 2008 Surat Rs. 3.4 Crores Rs. 47.0 Crores R.V. Metropolis Diagnostics & Healthcare Centre Private Limited 2008 Bangalore Rs. 3.6 Crores Rs. 51.6 Crores Dr. Patel Metropolis Healthcare Private Limited 2012 Nasik Rs. 1.8 Crores Rs. 18.6 Crores Sanjeevani Rajkot 2017 Rajkot Rs. 12.0 Crores Rs. 26.4 Crores Hitech Diagnostics 2022 Chennai Rs. 124.0 Crores (Non-Covid - Rs. 74 Crs.) Rs. 123.0 (Non-Covid - Rs. 100 Crs.) Metropolis has successfully improved the Performance of the Acquired Businesses as well as grow scale of operations, achieve economies of scale and increase operating efficiency thereby improving Market Position 54#55Plenty of Opportunities for Growth... Test Packages + + Scientific Upselling METROPOLIS The Pathology Specialist Growing our offering of Test Packages to Increase Revenue Metrics. Customized packages to Institutional Customers and Personalized Packages to Individual Patients are key Leverage our vast capabilities in Molecular Diagnostics, Oncology, Cytogenic where there is Less Competition and Higher Margins due to Advanced Technology, Skilled Manpower and Complex Processes Involved B2B Expansion B2C Aggressive Network Expansion to go closer to Patient + Seeding Cities emerging as New Focused Cities Public Private Partnership Selectively Participate in PPP Tenders in India by leveraging our experience with the execution of the NACO Order. Large opportunities exist in African markets on PPP basis 67% of Existing Patient Touch Points added during FY17-21. Maturity of this Young Network will fuel growth Inorganic Strategy of Expanding Metropolis Reach to more locations in existing cities of presence and new cities Preventive and Wellness Services Targeting healthy individuals with sedentary lifestyles are prone to diseases such as cardiovascular and diabetes ailments. Precision medicine, focus on preventive care, walk-in/direct-to-customer services to drive growth STRENGTHEN METROPOLIS BRAND TO 'BE THE ONLY CHOICE OF PATIENTS' 55#56CSR Activities MEDENGAGE Metropolis awarded 122 Scholarships to Medical Students in FY21-22 worth 90+ Lakhs under its flagship initiative MEDENGAGE. Over 1500 students applied for MedEngage benefits from 200+ institutes across the country METROPOLIS The Pathology Specialist MEDENGAGE NURTURING THETALENT GO BEYOND LIMITS ARE YOU THE ONE? Opportunity is just a click away SCHOLARSHIP OPPORTUNITY FOR MBBS & MD/DNB STUDENTS APPLY BEFORE JAN 18TH, 2022 www.MED-ENGAGE.COM T&C Apply WINNERS FOR THE CHAMPION OF CHAMPIONS CATEGORY Prashanth S Anshul Mahajan Saumitra Ginodia Tejas Shelar Anveshi Nayan Vidhi Vora x TOO SHY TO ASK Our app for adolescent and reproductive sexual health education titled TOOSHYTOASK reached over 165,000+ installs. Our regular education column in Mid-Day had a reach of over 2,50,000+ every week. In addition, our experts answered over 10,000+ queries from April 2021- March 2022. We launched the new and upgraded version of App in Android and iOs platform to enhance better user experience and have started building a flexible platform with capabilities to build future learning/course management modules. TOO shy TO ask Your personal guide for everything that you wish to know and ask CSR Initiative by Metropolis Healthcare Limited Sudhan Rackimuthu Hi, Aishwarya Win Prize Word Game Test your knowledge PHHC Hangte Harsh Parekh RGHC & COMThane WHAT WOULD YOU LIKE TO DO? ASK A QUESTIONS TAKE A QUIZ PLAY GAME WORD GAME INFORMATION STOREHOUSE PARENT'S CORNER NUTRITION, PUBERTY AND EXERCISES & VACCINES ANATOMY SEXUAL AND REPRODUCTIVE HEALTH GENDER VIOLENCE HEALTHCARE HEROES - 2nd Edition - Healthcare Heroes 2nd Edition: The Healthcare Heroes 2nd Edition was launched in December 2021 to recognize healthcare professionals & institutions with a strong sense of purpose and commitment towards patient care. The awards are being extended from doctors to nurses, ward boys, hospitals municipal corporations, corporates and NGOs. We will be recognizing contributions of individuals & institutions with award category titles such as Self Service, Healthcare Pinnacle, Nightingale, White Knight, Legacy, Impactful CSR, Pride and Profession, Public Health, Municipal Excellence, Pride in Profession and Healthcare Luminary. MEDENGAGE DESU* METROPOLIS The Pathology Specialist HEALTHCARE HEROES OF INDIA 2ND EDITION METROPOLIS The Pathology Special NGO Partner e Process Advisor EY Building a better DESU has initiated a course for Medical Laboratory Science aimed at preparing students for employment in the roles of Phlebotomists, Lab Attendants, Lab Assistants, Lab Technicians, etc. Metropolis Labs India be the industry partner for the course being offered by DSEU. Metropolis to jointly certify the program along with DSEU. Metropolis under its CSR initiative to fund the setup of practical and lab training requirements. MEDENGAGE DSEU is a multi- year project which will be implemented over the next three years. *Ongoing project 56#57Historical Financial & Operational Performance#58Better than industry growth On Consolidated Basis Revenue (In Rs. Crs.) +18% 998 856 760 644 Bolstering Growth in Wellness Segment METROPOLIS The Pathology Specialist 1,229 Metropolis Wellness revenue contribution for Metropolis is 7% in FY22 FY18 FY19 FY20 FY21 FY22 Revenue growth for B2C (In Rs. Crs.) 546 +19% 429 376 329 273 FY18 FY19 FY20 FY21 FY22 This market is expected to grow at a CAGR of 20% over next 3 financial years (Frost & Sullivan) Customers today are serious about wellness and choose to undergo preventive screening to safeguard their health and diagnose conditions before they turn in to complications This segment is termed as wellness as opposed to the illness wherein the patient has to undergo tests when they are prescribed tests during sickness Wellness & Preventive Diagnostics market is 7% to 9% in FY2018 (Frost & Sullivan) 58#59Well growing B2C Mix Retail contribution in Focus Cities (Non-Covid) to Total Revenue 56% 58% 52% 48% FY18 FY19 FY20 I 60% FY21 FY22 Chart shows B2C contribution over the years in focus cities; Mumbai, Chennai, Bangalore, Surat and Pune ↑ I METROPOLIS The Pathology Specialist Efforts to increase the Retail share in focus cities to 65% B2C contribution in the last few years has seen an upward trend owing to:- ✓ Aggressive network expansion to go closer to the patient ✓ Integrated Brand building campaigns to establish Metropolis as a trusted brand in the mind of consumer and the doctor ✓ Building awareness amongst doctors for quality and service differentiators of Metropolis vs the unorganized sector ✓ Obsessively monitoring customer experience and generating an NPS (*Net Promoters Score) of 91 across the group On Consolidated Basis *Net Promoter Score is a management tool that is used to gauge the loyalty of a firm's customer relationships 59#60Financial Highlights Revenue (In Rs. Crs.) 856 760 +17% 998 1,228 Normalized EBITDA (In Rs. Crs.) 232 207 362 +20% 301 METROPOLIS The Pathology Specialist Normalized EBITDA (%) 30.2% 29.4% 27.3% 27.3% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Reported PAT (In Rs. Crs.) 124 128 +20.2% ROCE (%)* 215 43.1% 38.5% 183 35.6% 26.1% ROE (%)* 29.4% 25.9% 24.3% 24.2% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 *ROCE EBIT / (Networth + Total Debt) ROE PAT/Networth 60 60#61Consolidated Profit & Loss Statement METROPOLIS The Pathology Specialist Profit & Loss (Rs. Crs.) Revenue from Operations Cost of Material Consumed Laboratory testing charges FY22 FY21 FY20 FY19 FY18 1,228.3 997.8 855.5 760.1 643.6 276.1 252.2 204.1 173.5 145.9 6.9 5.4 6.9 5.6 5.7 Gross Profit 945.3 740.1 644.5 581.0 492.0 Gross Profit (%) 77.0% 74.18% 75.33% 76.44% 76.44% Employee Expenses 238.9 206.4 190.2 172.7 145.8 Other Expenses 357.6 245.7 222.4 202.8 173.7 EBIDTA 348.8 288.0 231.9 205.4 172.5 EBIDTA (%) 28.4% 28.9% 27.1% 27.0% 26.8% Other Income 13.4 10.0 8.3 8.8 11.3 Depreciation 63.2 45.9 39.3 20.1 19.2 EBIT 299.1 252.1 201.0 188.4 164.6 EBIT (%) 24.3% 25.3% 23.5% 24.8% 25.6% Finance Cost 21.6 7.8 7.2 0.5 1.2 Exceptional Items 15.9* 0.0 24.5 6.3 Share of Profit/Loss from JV 0.0 0.0 -0.5 -1.4 Profit Before Tax 293.4 244.3 168.7 186.5 163.4 Tax 78.7 61.0 41.2 62.9 51.8 Profit After Tax 214.7 183.3 127.6 123.6 111.6 Profit After Tax (%) 17.5% 18.4% 14.9% 16.4% 17.3% *Exceptional Item is on account of settlement with Global Hospital of past dues 61#62Consolidated Balance Sheet METROPOLIS The Pathology Specialist Assets (Rs. Crs.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (Rs. Crs.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non-current assets Property, Plant and Equipment 139.2 1,137.2 396.0 355.2 247.9 230.1 115.1 Equity 121.2 116.7 112.3 Equity Share capital ROU Assets 355.5 103.1 59.7 0.0 0.0 Other equity Goodwill 454.7 90.3 90.3 78.6 78.4 Non Controlling Interest 888.2 708.1 525.2 420.0 429.1 10.2 10.2 10.1 10.0 9.5. 876.0 696.4 513.4 408.5 405.2 2.0 1.5 1.7 1.4 14.4 Other intangible assets 109.5 34.6 25.2 17.6 16.8 Intangible assets under development 5.8 0.0 3.0 5.8 0.0 LIABILITIES Equity accounted investees 0.0 0.0 0.0 0.5 0.0 Non-current liabilities 340.6 92.4 57.6 8.2 10.5 Financial Assets Financial Liabilities (i) Investments 1.8 1.8 1.8 1.8 1.8 (ii) Loans 0.0 10.4 5.5 4.2 3.3 (i) Borrowings 158.7 0.0 0.0 0.0 0.2 (iii) Other Financial Assets 34.7 2.3 12.4 10.2 8.3 (ii) Lease Liabilities 82.6 78.9 45.8 0.0 0.0 Deferred Tax Assets (Net) 9.8 17.1 13.9 3.7 5.3 (iii)Other Non-Current Liabilities 0.9 1.2 4.7 2.1 2.4 Other non-current assets 0.3 0.7 6.4 1.6 2.0 Provisions 11.7 8.1 5.4 3.2 3.5 Non-current tax assets (net) 25.8 20.7 15.9 7.5 1.9 Deferred tax liabilities (Net) 86.7 4.2 1.7 2.9 4.4 Current assets 393.1 608.5 397.1 304.7 300.4 Current liabilities 301.5 204.0 169.5 124.5 90.9 Inventories 51.1 40.5 24.4 26.1 21.2 Financial Liabilities Financial Assets (i) Borrowings 99.9 0.0 0.0 17.6 0.4 (i) Investments 13.8 8.3 12.6 31.0 100.4 (ii) Lease Liabilities 37.4 33.3 20.9 0.0 0.0 (ii) Trade receivables 135.5 123.0 128.2 136.8 100.7 (iii) Trade Payables 103.2 110.6 85.0 53.4 35.4 (iii) Cash and cash equivalents 66.0 386.6 107.2 51.4 43.5 (iv) Other Current Financial Liabilities 23.7 25.3 34.4 31.3 34.8 (iv) Bank balances other than (iii) 101.0 33.1 103.3 28.9 16.7 Other Current Liabilities 5.4 14.6 18.8 8.0 7.8 (v) Loans 0.1 4.1 11.2 15.1 10.8 Provisions 8.9 7.6 6.6 4.9 4.4 (vi) Other Financial Assets 11.5 0.6 2.2 8.4 1.4 Other Current Assets 14.3 12.2 8.0 7.0 5.7 Current tax liabilities (Net) 23.2 12.5 3.7 9.3 8.1 TOTAL-ASSETS 1,530.3 1,004.4 752.2 552.6 530.5 TOTAL - EQUITY AND LIABILITIES 1,530.3 1,004.4 752.2 552.6 530.5 62 32#63Board of Directors and Management Team#64Board of Directors METROPOLIS The Pathology Specialist Dr. Sushil Kanubhai Shah Chairman & Executive Director Holds a bachelor's degree in Medicine and Surgery and a degree of Doctor of Medicine in Pathology and Bacteriology from University of Bombay. More than 3 decades of experience in Pathology business Ameera Sushil Shah Managing Director Holds a bachelor's degree in Business Administration from the University of Texas and also completed Owner- Harvard President Management Programme from Business School. More than 2 decades of experience in Pathology business Hemant Sachdev Non-Executive Non-Independent Director Holds BA in Political Science from Delhi and is an Alumni of Harvard Business School. He is a first-Generation Entrepreneur with business interests in Retail, Distribution and Education Vivek Gambhir Independent Director Holds a bachelor's degree in Science & Arts from Lafayette College, Pennsylvania and a master's degree in Business Administration from Harvard University Sanjay Bhatnagar Independent Director Holds a master's degree in Engineering from Stanford University and also master's in degree business administration from Harvard University Anita Ramachandran Independent Director MBA (Finance) from the Jamnalal Bajaj Institute, Mumbai and has won several academic honours Milind Shripad Sarwate Independent Director bachelor's degree in Commerce from University of Bombay and is an associate of the ICAI, Holds a ICSI & ICWA 64#65Management Team Ameera Sushil Shah Managing Director METROPOLIS The Pathology Specialist Vijender Singh Chief Executive Officer Holds a bachelor's degree in Science from Kurukshetra University and completed an Executive Education Programme from the Indian School of Business, Hyderabad. More than 30 years of experience in business operations & Business Development Dr. Nilesh Shah President and Chief of Science & Innovation Holds a master's degree in Engineering from University of Mumbai and Diploma in Medical Laboratory Technology from K.J Somaiya College of Science. More than 30 years of experience in science & innovation Rakesh Agarwal Chief Financial Officer Holds a Master's in Business Administration with Finance Specializations from AIM Institute and CS from ICSI. He has over 20 years of progressive experience in Finance Domain including Business Finance, Financial Management & Operations Management. Ishita Medhekar Chief Human Resource Officer She has 20+ years of experience in varied industries such as telecom, Consultancy and Pharma with 15 years of experience in strategy and system designing and operations. In her recent assignments she has been associated with other organizations like Bharti Airtel, Avaya Global Connect, AF Ferguson & Co. 65#66Recent Awards and Accolades METROPOLIS The Pathology Specialist Period May 2022 April 2022 April 2022 April 2022 March 2022 Particulars Metropolis bagged the award for Innovation in Patient Centricity and Advocacy at the Patient First Summit 2022., hosted by IHW (India Health & Wellness Council) for introducing the holistic comprehensive package 'PREGASCREEN' Metropolis awarded with the 'Most Popular Diagnostic Laboratory Award' at the Healthcare Excellence Awards, hosted by Connect and Heal - CNH Care. This award was given for demonstrating excellence in customer service based on user reviews. Metropolis honoured with the 'Best of Bharat - Pride of India Brands' Award from Exchange4media. Our MD, Ms. Ameera Shah honoured with the 'Outstanding Healthcare Leader of the Year' Award at the Women Achievers Award 2022, hosted by Abhyudaya Vatsalyam, acknowledging contribution and efforts in the healthcare sector. Our CFO, Mr. Rakesh Agarwal honoured with the FE CFO Year of the Award at the 5th edition of FE CFO Awards for his outstanding achievements, best practices and excellence. March 2022 Metropolis honoured with the Best Organizations for Women, 2022 by the Economic Times. March 2022 Our MD, Ms. Ameera Shah honoured with the 'Most Powerful Woman in Business Award by Business Today January 2022 November 2021 March 2021 February 2021 Our MD, Ms. Ameera Shah has won the Women Entrepreneur Award in Organizational Segment - Health & Wellness category at the Express Awards for Women Entrepreneurs (ExpressAWE), instituted by the Financial Express and FICCI FLO Our MD, Ms. Ameera Shah has been featured among the Most Powerful Women in Business by Fortune India for the fifth consecutive year Our MD, Ms. Ameera Shah has been awarded as EY Entrepreneur of the Year in Life Science and Healthcare Metropolis Healthcare won the Leading Diagnostic Chain of the Year award at the Elets Diagnostics Leadership Summit, 2021 66#67For further information, please contact: Company: Investor Relations Advisors : METROPOLIS The Pathology Specialist SGA Strategic Growth Advisors Metropolis Healthcare Ltd. CIN L73100MH2000PLC192798 Mr. Rakesh Agarwal - CFO Email Id – [email protected] www.metropolisindia.com Strategic Growth Advisors Pvt. Ltd. CIN U74140MH2010PTC204285 Mr. Shogun Jain / Mr. Shrenik Shah [email protected]/[email protected] +91 77383 77756 / +91 96647 64465 www.sgapl.net METROPOLIS The Pathology Specialist