#1METROPOLIS The Pathology Specialist Reaching Out RESPONSIBLY Investor Presentation - February 2023#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. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. 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#3Q3FY23 Performance...#4Q3FY23 Performance Snapshot 3. & گاه Q3FY23 Key Highlights METROPOLIS The Pathology Specialist Total Revenue Rs. 286 Crores -3% YoY Revenue Excl. Covid PCR & Covid Allied tests Rs. 278 Crores 20% YOY Covid PCR & Allied Tests Revenue Rs. 8 Crores -88% YoY Volume (Excl. Covid PCR & Allied Tests) 6.2 Mn 14% YoY EBITDA Margin (Before CSR & ESOP) 27.1% Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021 Blood Tests | Diagnostics | Wellness Reported EBITDA Margin 25.5% 4#59MFY23 Performance Snapshot 3. & گاه 9MFY23 Key Highlights METROPOLIS The Pathology Specialist Total Revenue Rs. 866 Crores -6% YoY Revenue Excl. Covid PCR & Covid Allied tests Rs. 828 Crores 21% YOY Covid PCR & Allied Tests Revenue Rs. 37 Crores -84% YoY Volume (Excl. Covid PCR & Allied Tests) 18.4 Mn 21% YoY EBITDA Margin (Before CSR & ESOP) 26.8% Reported EBITDA Margin 25.8% Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021 The board has declared interim dividend of Rs. 8 per equity share of Face value of Rs. 2 each to equity shareholder of the company 5#6Key Operational & Financial Highlights 01 Operating EBIDTA for labs started before April 2022 stood @ 28.3% METROPOLIS The Pathology Specialist Operating EBIDTA for Q3FY23 stood at 28.3%, dilution of ~120 bps on account of Lab addition & Network expansion. New Network has contributed ~3% of Revenues for Q3FY23 02 70 Non-Covid growth @ 13% for Q3FY23 Non-Covid growth stood at 13% for Q3FY23 & 15% for 9MFY23 on Y-o-Y basis (excl. revenues for PPP Contracts & Hi-tech acquisition) Non-Covid Volume growth @ 03 13 10% & RPP @ 3% for Q3FY23 Volume growth for Q3FY23 stood at 10% & RPP growth stood at 3% on Y- o-Y basis (excl. volumes for PPP Contracts & Hi-tech acquisition) 50 04 Non-Covid Revenues from North & East up by 29% Revenue from North & East combined grew by 29% for Q3FY23 on Y-o-Y basis 05 50 06 Specialized & Premium Wellness is the fastest growing segments B2C revenue growth in Focus cities @ 16% for Q3FY23 *EBIDTA for Labs started before April 2022 Our Specialized & Premium Wellness segments are the fastest growing segment for Q3FY23 indicating strong Brand Equity & Doctor's Trust on Metropolis Brand Revenue growth for B2C in focus cities stood at 16% for Q3FY23 & 25% for 9MFY23 on Y-o-Y basis; Mumbai & Pune are growing at a faster pace indicating our strength & market share penetration in the core geographies 6#79MFY23 Non-Covid MHP (excl. PPP Contracts) Revenues up by 13% for Q3 FY23 Q3FY23 Non-Covid MHL (excl. PPP Contracts) 208 Q3FY22 +13% 235 8 METROPOLIS The Pathology Specialist PPP Contracts Covid PCR & Covid Allied Hi-Tech Diagnostics Total Revenues +200% -88% 23 61 8 17 +20% -3% 20 20 293 286 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Non-Covid MHL (excl. PPP Contracts) 607 +15% PPP Contracts Covid PCR & Covid Allied Hi-Tech Diagnostics Total Revenues +3% -84% -6% 700 63 65 235 Hitech revenues not comparable, 64 922 866 since it was acquired in Q3FY22 9MFY22 9MFY23 Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021 17 37 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 7#8Non-Covid revenue on growth trajectory (excl. PPP Contracts & Hi-Tech) METROPOLIS The Pathology Specialist 197 Non-Covid Revenues Q4FY21 v/s Q4FY22 Q4FY21 216 +8% 213 183 Non-Covid Revenues Q1FY22 v/s Q1FY23 Q4FY22 Q1FY22 Non-Covid Revenues Q2FY22 v/s Q2FY23 +13% +21% 222 Q1FY23 Non-Covid Revenues Q3FY22 v/s Q3FY23 243 208 +13% 235 Q2FY22 Q2FY23 Q3FY22 Q3FY23 Key Highlights Non-Covid revenues (excl. Hi-tech) for Q3FY23 stood at Rs. 235 crs as compared to Rs. 208 crs in Q3FY22, a growth of 13% ✓ Covid & Covid allied tests contributed only 3% of revenue in Q3FY23 vs. 21% of revenue in Q3FY22 We have been witnessing a steady growth for our Non-Covid business on a Y-o-Y basis for the last four quarters ✓ As economy moves past the covid days & the gradual shift in the consumer behavior encouraging them to be more health aware and proactive, expect the non-covid revenue to continue the growth trajectory both in the illness & premium wellness segments 8#9Financial Metrics -EBIDTA stood at -27.1% for Q3 FY23 (before CSR & ESOP) METROPOLIS The Pathology Specialist Operating EBIDTA for labs started before April 2022 stood @ 28.3%, dilution of ~120 bps was on account of our Lab addition & Network expansion strategy. New Network has contributed ~3% of Revenues for Q3FY23 Total Revenue EBITDA (Before CSR & ESOP) +28% +22% 274.7 293.1 285.5 89.7 80.5 77.2 222.8 63.1 Q3FY20 Q3FY21 Q3FY22 Q3FY23 Q3FY20 Q3FY21 Q3FY22 Q3FY23 Reported EBITDA Profit after Tax (PAT) +16% -15% 86.7 58.6 76.2 72.7 62.7 42.0 Q3FY20 Q3FY21 Q3FY22 Q3FY23 41.2 35.9 Q3FY20 Q3FY21 Q3FY22 Q3FY23 EBIDTA margins were impacted due to our investments in building the network expansions of Lab & Centers. EBIDTA margins would have been higher ~120 bps on a like to like basis PAT has been impacted due to higher finance cost on account of Hi-Tech Acquisition & higher depreciation on account of Investments done to fuel the future growth engines With the largest test menu, Pan-India Specialized Diagnostic player; the trust created over the years in Pathology makes Company well placed to outgrow the Competition as market share shifts towards the organized sector for quality testing with precision in outcomes ✓ Despite our Investments done in technology & initiatives to increase our D2C business, margins stood strong near the pre-covid levels. We expect the same to continue for the coming quarters Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021 9#10Strong Operational metrics No. of Patient Visits (In Mn.) Revenue Per Patient (In Rs.) METROPOLIS The Pathology Specialist 2.5 Q3FY22 5.4 +15.7% No. of Tests (In Mn.) Q3FY22 +3.6% 2.9 924 957 Q3FY23 Q3FY22 +13.5% 6.2 Q3FY23 Q3FY23 Revenue Per Test (In Rs.) +5.6% 426 450 Q3FY22 Q3FY23 ✓ Company recorded strong growth in No. of patients & No. of tests. No. of patients for Q3FY23 increased by 15.7% and No. of tests for Q3FY23 increased by 13.5% on Y-o-Y basis ✓ Our revenue per patient has increased by 3.6% for Q3FY23 on Y-o-Y basis, on the back of higher specialised testing & stability in our pricing strategy Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021; data excl. Covid & allied test 10#11B2C revenue grew by 15% for Q3 FY23 (Excl. Covid PCR and Covid Allied tests) METROPOLIS The Pathology Specialist Q3FY22 METROPOLIS The Pathology Specialist +15% Doctors Total B2C Revenue Q3FY23 +21% Key Highlights ✓ Our B2C 9MFY22 9MFY23 Patients/ Consumers In addition to increasing our penetration with Consumers through the Doctor/Medical fraternity, as part of our Metropolis 3.0 strategy, we are NOW increasing our reach with consumers through the Direct2Consumer (D2C) model business continue to witness growth on account of our customer first approach, digital & marketing initiatives ✓ Our Total B2C revenues grew by 15% for Q3FY23 & by 21% for 9MFY23 on a Y-o-Y basis ✓ Our B2C revenues in Focus cities grew by 16% in Q3FY23 on Y-o-Y basis with Mumbai & Pune being growing at a faster pace ✓ Our B2C revenues for 9MFY23 in Focus cities grew by 25% on a Y-o-Y basis B2C Strategy D2C Direct to Consumer Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021; data excl. Covid & allied test 11#12Share of B2C Business in Focus Cities (Non-Covid) at 60% in 9MFY23 METROPOLIS The Pathology Specialist B2C Ratio B2C Contribution in Focus Cities (Non-Covid Business) (Rs. in Crs.) 52% 56% 58% 60% 60% +13.8% 344 269 258 233 295 FY19 FY20 FY21 FY22 9MFY23 ✓ 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) Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021; data excl. Covid & allied test 12#13Specialised & Premium Wellness are the fastest growing segments METROPOLIS The Pathology Specialist Our Brand Equity across markets & Doctors Trust and Reliance on Metropolis helps us grow our Specialized & Premium Wellness segment faster than the Industry growth Q3FY22 Q3FY23 Revenue excl. Covid PCR & Covid Allied tests Volume Mix 14% 2% 47% 14% 2% 38% Q3FY22 Q3FY23 Non-Covid Revenue (excl. PPP Contract & Hi-tech Acquisition) Volume Mix 11% 2% 50% 11% 2% 49% 48% 36% 38% Value Mix 10% 13% 18% 17% 36% 36% 39% 31% Routine Semi-Specialized Specialized Wellness & Others 37% Value Mix 12% 19% 14% 19% 33% 33% 34% 36% Our wide and extensive tests menu enables us to cater to every customer profile from routine to complex specialized tests Our contribution from Premium Wellness in terms of value (excl. Covid PCR & Covid Allied tests, PPP Contracts & Hi-Tech) has increased from 12% in Q3FY22 to 14% in Q3FY23 Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021 13#14Diversified Revenue contribution across Geographies (1/2)... METROPOLIS The Pathology Specialist 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 Q3FY22 Q3FY23 Revenue Excl. Covid PCR & Covid Allied tests 20% 22% Q3FY22 Q3FY23 Revenue Excl. Covid PCR & Covid Allied tests 232 +20% 278 169 61% 19% 61% 17% 141 20% 48 10% 44 47 28% 60 Q3FY22 Q3FY23 Others Seeding Focus Revenues from our focus cities stood at 61% and the revenue growth was 20% for Q3FY23 on a Y-o-Y basis (Excl. Covid PCR & Allied tests) ✓ Our strategy of increasing revenues from our non-core geographies is panning out. Revenue (Excl. Covid PCR & Allied tests) grew by 28% for our ! other cities for Q3FY23 on a Y-o-Y basis Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021 14#15Diversified Revenue contribution across Geographies (2/2)... Revenue Mix between Geographies METROPOLIS The Pathology Specialist Q3FY22 7% 7% 25% Total Revenue Q3FY23 7% 8% Q3FY22 Q3FY23 Revenue Excl. Covid PCR & Covid Allied tests 6% 7% 30% 51% 4% 51% 56% 5% 4% 6% 8% 31% 51% 4% North South East West International 30% ✓ Revenues in North & East combined has grown by ~29% for Q3FY23 on a Y-o-Y basis, indicating volume & realization growth in our Non-Core geographies ✓ Revenue in West has grown by 21% on a Y-o-Y basis, indicating our strength & brand equity in the core geographies Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021 15#16Network Strategy Laboratory Network - MHL Service Network - MHL Hitech Network METROPOLIS The Pathology Specialist Total Network Rationalization ARC Period +396 centers Third Party PSCs +12 labs Owned PSCs Lab network Total 175 Laboratory Network Service network Total 3,548 3,460 22 Labs 22 88 153 3,064 141 2,731 744 119 124 125 2,555 2,336 704 598 498 153 3,460 575 2,456 1,873 2,105 1,806 1,506 255 260 251 255 FY19 FY20 FY21 FY22 9MFY23 FY19 FY20 FY21 FY22 260 9MFY23 Service Network Owned PSCs - 82 centers Third Party PSCs - 6 centers MHL Hitech MHL Hitech We are on course to add 90 labs & 1,800 service centers by FY25 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 18% 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 ✓ Integration of Hitech Lab Network - For operating leverage, optimized Hitech laboratory network by merging the operations with MHL network 16#17Focus on Premium Wellness Segment Population for Diagnostic Industry Total Premium Wellness Revenue (excl. Covid & Allied) 94% 6% 20 16 METROPOLIS The Pathology Specialist METROPOLIS 30% Make health your No. 1 priority! 26 TruHealth Youth 7,140 4,000 This package covers tests for your vital organs along with important tests like Vitamin D, HbA1c, thyroid profile & Vitamin B12 Tests included 28 Parameters Report Availability Next Day TEST ASSURED. REST ASSURED. Package available in Mumbai, Pune, Chennai & Bangalore ■ Wellness Population ■Illness Population Our focus is to cater to the balance 94% of the population which has potential of wellness testing Q3FY21 Q3FY22 Q3FY23 Revenue from Premium Wellness has grown by 30% on Y-o-Y basis & stood at Rs. 26 as compared to Rs. 20 crs in Q3FY22 ✓ Contribution from Premium Wellness has increased from 10% in Q3FY22 to 13% in Q3FY23 METROPOLIS Super Care For Super Dad Get up to 71% off on health packages for your dad! TruHealth My Dad My Hero Package (Test Parameters: 32) *10190 TruHealth. 2999 My Dad My Super Hero Package (Test Parameters: 36) *12425 3999 Our Strategies Premium Wellness packages with average realisations of Rs. ~2,000 Margin accretive premium wellness packages Upselling Routine testing patients to bundled testing (Wellness packages) Digitally linked upselling for Chronic Patients (Notifications/Pop- up's/Offline outreach) Offset the competition intensity in our B2B Semi- specialised segment Q3FY22 includes Hitech Diagnostics w.e.f 22nd Oct 2021; data excl. Covid & allied test To book a test: 9982-782-555 www.metropolisindia.com TEST ASSURED. REST ASSURED. P M Pe Chal& Please click here for TruHealth Wellness Packages 17#18Creating a Digital Transformation for business to grow Enhanced Productivity Plans Benefits METROPOLIS The Pathology Specialist Rapid Scalability Improved user experience Business Continuity & Agility Future Ready Architecture C A Fully Scaled Application Programming Interface (API) - Centric Tech Core Full-fledged Customer Relationship Management (CRM) stack for Service, Sales, and Marketing with Customer Data Platform (CDP) Omni Screen Point-of-Sale Application (Registration & Invoicing) Newly Architected LIS with middleware for auto validation Enhanced B2C App (v1.0 released, V2.0 will be released in Nov, V3.0 will be released Mar) Directory of Services 2.0 (DOS) for faster creation of products/packages Supply chain (SCM 2.0) with visibility of consumption and planning B2B Portal (Partner Portal) adoption drive Cloud data-center consolidation Near real-time Biz. Intelligence Digital Leadership Faster go-to-market Easier integration with Govt & Pvt entities (Ayushman Bharat Digital Mission, Aggregators, Hospitals, etc.) Omni Channel Acquisition & 'O' loss of Biz at Touchpoints 360° view customers for better life- cycle management Data-driven Biz. (Analytics) Improving Turn Around Time (TAT) Improving Net Promoter Score (NPS) 18#19Our ESG Initiatives Well identified ESG focus Areas and assessments are created as per the materiality matrix based on the GRI, SASB, and SDG frameworks. Full BRSR report to be Environment • * Social • issued in AR 22-23 ESG Initiatives GHG Emissions . Waste Management . • • Materials management in lab operations Supplier ESG assessment Patient privacy and electronic health records Quality of care and patient satisfaction • Employee Health and Safety • . Governance • Employee recruitment, development, and retention Local communities Anti-corruption Board Composition, Structure, and Effectiveness ENVIRONMENT GHG Emissions: We will be measuring and tracking Scope 1, Scope 2 and Scope 3 Emissions in real-time. Waste Management: Track and monitor segregating Bio-medical waste Plastic, E-waste and other hazardous waste. Focus on developing Waste Management Policies, Direct to Specialized agencies, Analysis on the impact of Waste generated and reduction and mitigation plan. Material Management in Lab Operations: Time & Motion Studies, Domain-specific working group with KRA's/Linked Incentives, explore IT solutions and focus on Cost Optimization Supplier ESG Assessment: Developing processes to screen existing and new suppliers using ESG criteria. GOVERNANCE Anti-Corruption: Creating an Anti-corruption Policy, Risk identification, framing policies and protocols for mitigation, Awareness and training Programs to be initiated. SOCIAL METROPOLIS The Pathology Specialist Diversity: Calculate and strategize the future hiring process in line with the business growth plan. Define a plan for ensuring Gender Diversity and focus on Capacity Building. Equity: Track and monitor compensation levels, create opportunities for career growth and promotions across gender, categories, and geographies. Inclusion: Focus on Organization culture, on-boarding and physical infrastructure to make Metropolis a Great Place to Work. Training and Development: Personalized Training Maps, measuring effectiveness through surveys, focusing on Skill and Productivity improvement. Tracking ratio of internal progress v/s external hires at Managerial level. Patient Privacy and Electronic Health Records: Developing GDPR Guidelines, communicating existing policies and initiatives to stakeholders, track and monitor consumer complaints on data privacy, and communication of corrective actions taken or underway on issues relating to the data privacy of customers. Occupational Health and Safety: Developing Separate Tracks for EHS & OHS, track and reduce lost time incident rates, Facilitation of worker participation in developing, evaluating, and implementing health and safety management systems. Communication of measures taken by MHL to ensure a safe and healthy workplace. Local Communities: Reporting of activities and identifying new initiatives for local community engagement. Formulate a Grievance redressal mechanism for local communities around MHL laboratories. Monitoring of existing CSR initiatives and impact. Check feasibility for sourcing inputs from local suppliers. 19#20CSR at Metropolis METROPOUS foundation METROPOLIS MEDENGAGE NURTURINGTHETALENT mingp NOTCH OP • . Too Shy to Ask (TSTA) Outreach and Digital Program Metropolis Foundation, the CSR arm of Metropolis has partnered with 6 implementation partners for TSTA outreach programme. TSTA Outreach programme aims to reach 20,370 adolescents, 21,000 adolescent infuencers and 500 teachers to create impact both in rural and urban areas of Maharashtra. Digital Intervention Outreach has helped with 2.5 lakh downloads/installs of TSTA App. The TSTA App has 1.1 lakh active users. The TSTA App has a rating of 3.8 . . MedEngage Programme The annual Med Engage Scholarship Programme plans to extend 150 scholarships to Medical students in FY 22-23 from 120 in FY 21-22 under its flagship initaitive. Over 2600 students from 516 cities in India registered for different initiatives of Med Engage Medical Outreach Program. MedTalk - A new initiative under MedEngage platform was launched in 2023. A webseries is an interactive session for senior and young doctors to co-create a futuristic healthcare vision. It gives a platform to learn directly from experts, broaderning the horizons of aspiring doctors. Preventive health Care Project Under the CSR intiiatives, Metropolis initiated the community-based preventive healthcare programs and is focussing on diseases such as Diabetes, Anaemia and Tuberculosis. Metropolis has already extended its support to 650 TB patients with Nutritional support under Pradhan Mantri TB Mukt Abhiyan . METROPOLIS The Pathology Specialist DSEU*( Delhi Skills Entrepreneurial University) DSEU has collaborated with Metropolis for three years tor promote Skill Development as an ongoing project. In FY 22-23, DSEU's 5 labs was inaugurated & is now functional. 20#21Steady Focus on Balance Sheet continues Debtor Days 31 31 Mar-22 Dec-22 OCF to EBIDTA 96% 99% FY22 9MFY23 Working Capital Days 19 14 Mar-22 Dec-22 Cash and Cash Equivalents Rs. In Crs 181 131 Mar-22 WC Days (CA- Cash & Equivalents) - (CL - Lease liabilities - Borrowings) / TTM Sales *365 = OCF / EBITDA = CFO before tax / EBITDA Dec-22 METROPOLIS The Pathology Specialist Key Highlights ✓ Debtor days in Dec-22 at stable levels compared to Mar-22 ✓ Cash & Cash Equivalents dropped on account of prepayment of loan taken for acquisition of Hitech ✓ Gross debt stood at Rs. 111.4 Crs as of Dec-22. Plan to repay by FY24 Working Capital days increased by 5 days due to decrease in creditor days by 6 days ✓ OCF / EBITDA stood at 99% 21#22Q3 & 9M FY23 Consolidated Profit & Loss Statement METROPOLIS The Pathology Specialist Profit & Loss Statement (Rs. Crs.) Q3FY23 Q3FY22 Y-o-Y 9MFY23 9MFY22 Y-o-Y Total Revenue from Operations 285.5 293.1 -2.6% 865.7 922.4 -6.2% EBIDTA (before CSR & ESOP) 77.2 80.5 -4.1% 231.9 279.3 -17.0% EBIDTA (before CSR & ESOP) Margin 27.1% 27.5% 26.8% 30.3% CSR & ESOP 4.5 4.3 4.2 9.5 Reported EBIDTA 72.7 76.2 -4.6% 223.6 269.8 -17.1% Reported EBIDTA Margin 25.5% 26.0% 25.8% 29.3% Depreciation 23.1 16.9 65.8 45.2 Other Income 6.8 2.6 14.0 11.9 EBIT 56.4 61.9 -8.9% 171.8 236.5 -27.4% Finance Cost 8.4 5.8 26.2 15.5 Exceptional Items (Gain / (Loss) 15.9 Profit Before Tax 48.0 56.1 -14.4% 145.6 236.9 -38.5% Taxes 12.1 14.9 35.7 62.3 Profit After Tax PAT Margin 35.9 41.2 -12.9% 109.9 174.5 -37.0% 12.6% 14.1% 12.7% 18.9% 22 22#23Consolidated Balance Sheet METROPOLIS The Pathology Specialist Assets (Rs. Crs.) Sep-22 Mar-22 Equity & Liabilities (Rs. Crs.) Sep-22 Mar-22 Non-current assets 1,181.5 1,137.2 Equity 958.9 888.2 Property, Plant and Equipment 143.0 139.2 Equity Share capital 10.2 10.2 ROU Assets 154.3 109.5 Other equity 946.4 876.0 Goodwill 454.7 454.7 Non Controlling Interest 2.3 2.0 Other intangible assets 353.9 355.5 Intangible assets under development 12.7 5.8 Financial Assets (i) Investments 1.8 1.8 Non-current liabilities 259.1 340.6 (ii) Loans 0.0 0.0 Financial Liabilities (iii) Other Financial Assets 27.2 34.7 (i) Borrowings 53.9 158.7 Deferred Tax Assets (Net) 4.9 9.8 (ii) Lease Liabilities 113.9 82.6 Other non-current assets 0.9 0.3 (ii) Other Non-Current Liabilities 0.3 0.9 Non-current tax assets (net) 28.3 25.8 Provisions 12.7 11.7 Deferred tax liabilities (Net) 78.3 86.7 Current assets Inventories Financial Assets 325.6 393.1 38.5 51.1 Current liabilities 289.1 301.5 Financial Liabilities (i) Investments 26.8 13.8 (i) Borrowings 84.2 99.9 (ii) Trade receivables 124.2 135.5 (ii) Lease Liabilities 53.0 37.4 (iii) Cash and cash equivalents 70.1 66.0 (iii) Trade Payables 101.4 103.2 (iv) Bank balances other than (iii) 40.5 101.0 (iv) Other Current Financial Liabilities 18.1 23.7 (v) Loans 0.3 0.1 Other Current Liabilities 1.9 5.4 (vi) Other Financial Assets 7.4 11.5 Provisions 10.5 8.9 Other Current Assets 17.8 14.3 Current tax liabilities (Net) 20.0 23.2 TOTAL ASSETS 1,507.1 1,530.3 TOTAL-EQUITY AND LIABILITIES 1,507.1 1,530.3 23#24Metropolis is well placed#25Doctor 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 Recommendationi Convenience Price Brand Perception test results Quality Accuracy of The Pathology Specialist 60% 50% Acute Patients are highly influenced by doctors III 40% 60% 60% 50% 30% 40% 33% 20% 40% 40% 35% 33% 20% 25% 20% 10% 0% Doctore Accuracy Price TAT Convenience Price Relationship Doctor Price Convenience Relationship Accuracy of Acute recommendation of results with labRecommendation with lab test results Chronic Preventive Acute - Source Bain & Company Chronic Preventive I Influenced by doctos ✓ 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 Self-book 25#26Metropolis is well placed Category Doctor Influence METROPOLIS The Pathology Specialist Acute Patient Chronic Patient Preventive Customers Highest Price Factor Lowest Online aggregators Impact Lowest METROPOLIS The Pathology Specialist Well placed to tackle increased competition Appx. 80% of the volumes at 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 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 I I I I I I I | I I I I | 1 I I J 26#27Mumbai 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 27#28Strong Productivity from new centres in focus cities Service Network in Focus Cities Productivity of new centres keeps on increasing +419 +24 +15 526 487 502 +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 28#29Way forward...#30Way 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 FY25 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 30#311. Network Expansion Plan Metropolis Network Expansion Plan Laboratory Network 125 +72% 90 215 FY21 ✓ Expand to existing & newer locations - FY25E 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 Service Network METROPOLIS The Pathology Specialist +70% 4,355 1,800 2,555 FY21 FY25E | Benefits of labs expansion ✓ Faster commissioning of labs leading to early monetization ✓ Availability of larger test menu to wider & newer market I I I ✓ Increasing the visibility & penetration of Metropolis Brand ✓ EBIDTA margins back to Group level in 2.5 years through better productivity which was earlier at 4 to 5 years for greenfield labs 31 1#322. 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 32 22#333. 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 33#344. Levers for Margin Improvement & Cost Efficiencies Increased Home Visits Increase Home Visits revenue with focused marketing initiatives and expanding the service coverage Automation Automation & Digitization across all processes to control unnecessary costs Increased Utilization and Product Mix Higher utilization of Labs and increase in patient visits coupled with superior product mix 01 95 05 Levers for Margin Improvement 04 H0 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 34#355. 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%. 35#36Overview#37We 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 20 States & 220 Cities 26 Mn Tests & 13 Mn Patient Visit in FY22#38Journey 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 38#39TEST MENU Three decades of Delivering Value to Stakeholders METROPOLIS The Pathology Specialist Leadership Position Across Industry METROPOLIS Focus Area ACCREDITATION & QUALITY SCORES ($) ROCE INFRASTRUCTURE + REVENUE PER PATIENT S- CUSTOMER EXPERIENCE SCORE REALISATION PER PATIENT SPECIALITY BUSINESS At INCREASED PRODUCTIVITY OF YOUNG NETWORK 39#40Key Drivers for Growth 01 Industry Growth 05 Expansion Plan 02 Value Chain 06 Quality 03 07 Business Model People METROPOLIS The Pathology Specialist 04 08 Service Network Digital Transformation 40 40#411a. 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 41#421b. 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 42 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#432.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% 43 Low Competition#443. Hub & Spoke Model to scale efficiently Individual Patient (B2C) Patient Collection Centres Home Collection Express Lab שת RRL/Satellite Lab Delivery to our Collection of Specimen across multiple locations Clinical laboratories for Diagnostic testing Greater Economies of Scale Global Reference Lab (GRL) انا Third Party Lab / Hospitals/ARCS Enhances consistency of our testing procedures I METROPOLIS The Pathology Specialist == Patient Leverage Widespread network to compete with Local Diagnostic Providers 44 Wholesale (B2B)#454.Patient Centric Network More than 4,000 Test's & Profiles Present in 20 States & 220 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 172 Labs 150 Labs Metropolis 22 Hitech 242212 3,379 Collection Centers 259 Owned PSC's 2,262 3rd Party PSC's 770 ARC's 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 88 Hitech Collection Centers ~200 1,000 Sq. Ft - Consistency in operations in every single visit from seamless blood collection, hygienic collection setup to timely report delivery 45#465. 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 46#476a. 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 47#486b. Globally Compliant Quality Standards और अ अंशशोधन OARD FOR TESTING AND CAL प्रयोगशाला परीक्षण राष्ट्रीय •भारत- प्रत्यायन वाड 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 48#496c. Scientific brand leadership Chronic Disease New tests, R&D New tests on advanced technologies ddPCR, LCMS, CGH Array and WSI NGS R&D Innovation Pipeline Companion Diagnostics CDx ■Artificial Intelligence Aggregator test bundling Research & Publication Profiles and packages vation Cell R&D Brand KOL connect SCIENTIFIC FOCUS Chronic Disease Digital- Reminders and medical remarks !!!uaเวร Annual subscriptio n models POCT Specialty Jǝdns Metrobot n Website KOL Spotligh RTM CME Panel Discussion Critical Value Alert Project Decathlon Podcasts n Webinars Joint Publications n Projects Recommended Tests Research n Co- development Scientific PR Women & child ■ Oncology Chronic Diseases Molecular Genomics METROPOLIS GENOMEXPERT Comprehensive Genetic Solutions METROPOLIS GASTROMET Expert • Comprehensive Innovative METROPOLIS GYNEÇXPERT Delivering Comprehensive Diagnosis METROPOUS NEPHROMET METROPOLIS ONCOMET Conclusive Oncology Diagnosis Expert Renal Diagnostic Solutions Strategy Solutions METROPOLIS The Pathology Specialist Segment Focus Women & Child health Gynecxpert Neoxpert • Pediamet Integrated Oncopathology Oncomet Histoxpert Chronic & Infectious diseases Neurouno, Nephromet, Gastromet, Cardioxpert, Microxpert, Diabedge, Osteoxpert Molecular Genomics Genomexpert 49#507. 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 HR Management system for 4 Innovation at every stage. Superior execution of 4 5 Strong Culture and Equal opportunity workplace. automated process ensuring real time employee related data. Learning management system for upskilling the talent 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 50#518. 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 Zero Efficiency Data Loss; 100% data 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 Improve Customer Experience Mobility 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 51#528a. 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 Performance Metrics 4 Closely track our key performance metrics | 2 Reduced Errors Reduce incidence of errors due to human intervention 3 METROPOLIS The Pathology Specialist Technical Operations Monitor Technical Operations through enhanced IT Systems 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 42 52#53Future Strategy 01 Increase Services + 02 Increase Scale METROPOLIS The Pathology Specialist 53#54Customer 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 54#55Sustainable Growth across Network Criteria High Potential Market Metropolis has significant presence and operational experience in these cities v High Growth Potential Market Core focus of Metropolis medium to long term growth ✓ Potential to become 'Focus Cities' Tier II/Tier III Cities METROPOLIS The Pathology Specialist Network of 210 Cities % of Revenue for FY22 (Total Business) Focus Cities Profitable Engines 61% (Mumbai, Pune, Chennai, Bangalore, Surat) 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 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 55#56Focus on Profitable B2C Business Increase B2C sales mix Deeper Network Penetration METROPOLIS The Pathology Specialist Strengthen Metropolis Brand 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. 56#57Growing 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 57 40#58Successful 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 58#59Plenty 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' 59#60Historical Financial & Operational Performance#61Better than industry growth Revenue (In Rs. Crs.) On Consolidated Basis +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) 61#62Growing B2C Mix Retail contribution in Focus Cities (Non-Covid) to Total Revenue 58% 56% 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 62 62#63Financial Highlights Revenue (In Rs. Crs.) 856 760 +17% 998 1,228 Normalized EBITDA (In Rs. Crs.) 232 207 METROPOLIS The Pathology Specialist Normalized EBITDA (%) 362 +20% 301 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 ROCE (%)* 43.1% 38.5% +20% 215 35.6% 183 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 63#64Consolidated 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 64#65Consolidated 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 888.2 10.2 876.0 Goodwill 454.7 90.3 90.3 78.6 78.4 Non Controlling Interest 2.0 1.7 708.1 525.2 420.0 429.1 10.2 10.1 10.0 9.5. 696.4 513.4 408.5 405.2 1.5 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 Inventories 393.1 608.5 397.1 304.7 300.4 Current liabilities 301.5 204.0 169.5 124.5 90.9 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 65#66Board of Directors and Management Team#67Board 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- President Management Programme from Harvard 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 67 52#68Management Team V METROPOLIS The Pathology Specialist Ameera Sushil Shah Managing Director Holds a bachelor's degree in Business Administration from the University of Texas and also completed Owner-President Management Programme from Harvard Business School. More than 2 decades of experience in Pathology business Mr. Surendran Chemmenkotil Chief Executive Officer Over 34 years of rich and diverse experience across consumer facing companies such as Xerox India Limited and Bharti Airtel Limited. Previously, MD & CEO of Airtel Networks Ltd, Nigeria, a leading telecommunications company in Nigeria. Dr. Nilesh Shah President and Chief of Science & Innovation Holds a master's degree in Engineering from University of Mumbai and a 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. 68#69Recent Awards and Accolades Period Feb-23 Jan-23 Jan-23 Nov-22 Oct-22 Sep-22 Aug-22 June 2022 May 2022 April 2022 April 2022 April 2022 March 2022 March 2022 March 2022 January 2022 November 2021 March 2021 Particulars METROPOLIS The Pathology Specialist Our Chairman Dr. Sushil Shah recognized with the Hurun Industry Achievement Award 2022 at the 10th edition of Most Respected Entrepreneurs Awards, organized by Hurun India. Metropolis Healthcare won the Gold Award for Excellence in High-end Diagnostics at the 8th India Health and Wellness Awards by IHW Council. Hitech Diagnostic Centre bags the Silver Award for Excellence in Pathology Services at the 8th India Health and Wellness Awards by IHW Council. Metropolis Healthcare's subsidiary Hitech Diagnostic Centre Pvt Limited honoured with the Best Standalone Regional Laboratory Chain - South at the ET Healthcare Excellence Awards 2022. Dr. Kirti Chadha, Chief Scientific Officer and Group Head - CSR recognized with the Distinguished Doctor of the Year Award in Oncopathologist category by Assocham for her outstanding contribution in healthcare industry. Our CFO Mr. Rakesh Agarwal was felicitated with the 'Financial Star' Award at the debut edition of the Financial Express' CFO Connect Conclave for his exemplary contribution in the field of Finance and to the growth of the organization. Metropolis Labs in Ghana won the Overall Best Pathology Laboratory Centre of the Year Award at the Ghana Medical Laboratories Excellence Awards (GMLEA). Our MD, Ms. Ameera Shah recognized as the Most Promising Women Leader of India 2022 by ET x Femina. 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. Metropolis honoured with the Best Organizations for Women, 2022 by the Economic Times. Our MD, Ms. Ameera Shah honoured with the 'Most Powerful Woman in Business Award by Business Today 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 69#70For 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. Sagar Shroff [email protected]/[email protected] +91 77383 77756 / +91 98205 19303 www.sgapl.net METROPOLIS The Pathology Specialist