#13 & MAX www.maxindia.com Max India Limited Investor Presentation June 2015 BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:IN 1#23 Max Group Vision MAX "To be the most admired corporate for service excellence" • Positive social impact Sevabhav Excellence Excellence courtesy transparency Helpfulness Expertise Dependability • Culture of Service Mindfulness • • Entrepreneurship Business performance • Transparency · Respect Credibility Integrity • Governance Max Way as an underlying ethos respect/dignity performance orientation progressiveness ethicality 2#33 & MAX Our Businesses Multi-business corporate MAX LIFE INSURANCE Your Partner for Life Life Insurance Protecting Life 74:26 JV* with Mitsui Sumitomo; Largest non bank lead private life insurer MAX NEEMAN CONTRACT RESEARCH Improving... life Clinical Research 100% owned; Being divested Mitsui Sumitomo Insurance "G Focused on people and service IN THE BUSINESS OF LIFE' MAX HEALTHCARE Caring for you... for life Healthcare Caring for Life Equal JV with Life Healthcare, SA; 2,000 beds MAX SPECIALITY FILMS Enhancing quality...always Speciality Films " Max Bupa Health Insurance A Max India Joint Venture Health Insurance Enhancing Life 74:26 JV with BUPA Finance Plc, UK Niche high barrier polymer films & Leather Finishing Foils Life Group HEALTH CARE *Max India currently holds 72% in Max Life ^Current holding in MHC is Max India-46%, Life Healthcare -46% and IFC-7.5% Antara A M MAX ENTERPRISE Senior Living 100% Owned; Continuing Care Retirement Community in Dehradun MAX INDIA FOUNDATION Making a difference... to life Corporate Social Responsibility Focus on healthcare, children and the environment Βυρα h 3#43 MAX A unique investment opportunity and a resilient business model 1 INR 149 billion+ Revenues*... ~INR 120 billion M Cap... 7 Mn Customers... 18,000 Employees... 52,000+^ Agents... 2,200+ Doctors... 2 3 4 Strong growth trajectory even in challenging times; a resilient & diversified business model Steady revenue growth and cost rationalization leads to strong financial performance Well established board governance....internationally acclaimed domain experts inducted 5 Diversified ownership.....marquee investor base 6 Superior brand recall with a proven track record of service excellence 7 Strong history of entrepreneurship and nurturing successful business partnerships Pharma Electronic Component Mobile Telephony Communication Services Plating Chemicals Medical Transcription Life Insurance DSM MOTOROLA intelligence everywhere AVNET® *Total Revenue for FY14, ^Across Life and Health Insurance COMSAT Hutchison ATOTECH HEALTHSCRIBE GLOBAL LO TELECOMCATION TIN NEW YORK LIFE 4#53 MAX Growth potential recognized by the market.... high pedigree investor base Shareholding Concentrated with Marquee Investors Temasek • Fidelity • Norges New York Life • Comgest Reliance MF Mutual Funds 11.3% Shareholding Pattern as on March 31, 2015 • ICICI Prudential MF FII (Others) 17.6% Others 12.0% Number of outstanding shares: 26.65 Cr. Goldman Sachs 15.5% IFC 3.1% Promoters 40.5% 5#6& MAX 3 Consistent track record of strong growth across businesses with the group turning strong profits Rs Cr. Operating Revenue Trend 12000 9000 CAGR - 16% Rs Cr. FY 11 FY 12 FY 13 FY 14 FY15 Operating Revenue 6,668 7,648 8,180 9,140 10,048 Investment and 6000 1,223 914 2,444 2,543 4,829 10048 Other Income 9139 8180 7643 6668 3000 5574 Total Revenue 7,891 8,562 10,624 11,683 14,877 0 Profit/ (Loss) 32 242 991* 274 FY10 512** FY11 FY12 FY 13 FY14 FY15 before Tax Profitability Trend 400 350 300 250 200 150 100 50 32 -50 -100 -150 (86) FY10 FY11 242 FY12 FY 11 FY 12 FY 13 FY 14 FY 15 Net Worth 1,944 2,513 2,903 2,984 3,302 333 274 Loan Funds 507 549 676 702 544 197 FY 13 FY 14 FY 15 Net Fixed Assets 1,017 1,256 1,361 1,495 867 Treasury Corpus 540 397 409 247 683 Life Ins. AUM 13,836 17,215 20,458 24,716 31,200 Investment & Other Income and PBT for FY13 includes income from stake sale in Max Life amounting to Rs. 802 Cr and Rs. 794 Cr, respectively. However, PBT for FY13 has been appropriately adjusted in the chart to reflect proper trends Gain from stake sale in Max Healthcare to Life Healthcare of Rs. 286 Cr. included in FY15 revenue and Rs 256 Cr. included in EBITDA/ PBT. Expenses of Rs. Rs 77 Cr. carried forward to be charged over future projects of Antara recognized in the P&L as current focus is on ensuring the success of first project, however PBT in the chart has been adjusted for one-offs *** Max Healthcare consolidated on proportionate basis w.e.f. Nov 11, 2014, as it becomes a JV as opposed to a subsidiary earlier 6#7MAX Max India Max India - FY15 Key Highlights • Board recommends final dividend of Rs. 1 per share Considerable progress in the journey to bring structural clarity for shareholders: • . - ■ Scheme of Arrangement to split Max India into 3 verticals Max Financial Services (Life Insurance); Max India (Healthcare, Health Insurance, Senior Living, Corporate Management Services and others); and Max Ventures and Industries (Specialty Films) has received Stock Exchanges / SEBI and CCI approvals ■ Scheme has been filed with High Court; shareholder meeting on July 4th. Application for FIPB approval also filed and IRDA being filed ■ Divestment of clinical research business concluded EV as at Mar 31, 2015 at Rs 5,232 Cr, after allowing for shareholder dividends of Rs. 240 Cr and share capital buy back of Rs 166 Cr in FY15 Max Life • ROEV for FY15 at 28.1% and operating RoEV at 22.3% • Value of New Business for FY15 at Rs. 460 Cr. and new business margin at 23.4% • Max Life wins awards for Quality and Service Excellence at the ASQ World Conference Max Healthcare Max Bupa • To acquire 76% stake in 340-bedded (expandable to 540 beds) NCR based Hospital (Pushpanjali Crosslay) for Rs 287 Cr. including fresh investment of Rs. 162 Cr. MHC turns profitable in Q4 with an EBITDA growth of 50% to Rs. 170 Cr. • Documentation underway for resetting the JV to 51:49. Cash inflow of Rs. 186 Cr. assuming implementation by June 30, 2015 • Flagship product, Heartbeat Version 3, wins 'Golden Peacock Innovative Product/Service Award' for the year 2015 7#83 MAX MAX LIFE INSURANCE COMPANY (Max Life) MAX LIFE INSURANCE www.maxnewyorklife.com 8#93 MAX Indian life insurance industry has evolved since the opening up of the sector in 2000 MAX LIFE INSURANCE Phase 1 - Joyful Entry (2000-2003) Entry of Private Players ☐ Introduction of Bancassurance Phase 2 -Expansion (2004-2008) Equity Bull Run ULIP introduced by private players Phase 3 - Discovering New Normal (2009 onwards) Global Financial crisis/ Bearish Indian Stock Market Frequent regulatory interventions 4.6% 4.4% xx Individual FYP adjusted for Single Premium ("000 Cr.) 4.1% 4.0% 4.0% Insurance penetration 3.4% 3.2% 3.1% 2.6% 2.5% 2.5% 2.2% 2.3% 55 53 55 50 47 48 47 45 41 40 50% 48% 43% 54% 63% 62% 62% 51% LIC 21 64% 16 14 10 10 12 12 66% 100% 98% 94% 85% 75% Private Players FYOO FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 ICICI PRUDENTIAL HDFC Life MAX LIFE INSURANCE kotak Birla Sun Life Insurance TATA AIA EXIDE Life Insurance SBI Life With us, you're sure pnb MetLife BAJAJ Allianz AVIVA RELIANCE Anil Dhirubhai Ambani Group Life Insurance INDIA SAHARA bharti AXA FUTURE GENERALI Shriram Life TOTAL INSURANCE SOLUTIONS IDBI FEDERAL association with Agess DBI Federal Life Insurance Co Ltd A Canara HSBC OBC Life Insurance DLF Pramerica LIFE INSURANCE AEGON RELIGARE LIFE INSURANCE Star Union Dai-ichi LIFE INSURANCE Source: IKDA IndiaFirst Edelweiss Tokio life LIFE INSURANCE URANCE#10& MAX Product structure has started evolving, Private industry is seen moving towards a balanced product mix MAX LIFE INSURANCE Product Mix for top players in FY 2015 (as per market reports) ICICI Pru 13% 3% 84% 29% 44% HDFC Life 23% 15% 62% 69% SBI 46% 6% 48% 89% Max Life 57% 15% 28% 71% 56% Reliance Life 15% 70% 15% 31% 11% Birla Sunlife 25% 38% 37% FY 2007 FY 2011 FY 2014 FY 2015 Bajaj Allianz 23% 56% 21% ■Traditional ULIP Par Non Par ULIP KEY INSIGHTS Improved performance of the capital markets has revived interest in ULIPS which was leveraged well by some of the top players to record high new sales growth (individual adjusted @ 10% SP) - ICICI Prudential (YoY: +41%), HDFC Life (YoY: +25%) and SBI Life (YoY: +11%) 。 While ICICI Prudential and SBI Life had a high UL share across channels, HDFC Life delivered growth driven by high UL share in their banca channel only Top agency led players like Reliance Life and Birla Sunlife continued to have a Traditional heavy portfolio Max Life's UL share accounted for 28% of total portfolio as a result of increased customer demand SOURCE: Market Intelligence & Internal Estimates | Public Disclosures 10#11M MAX Max Life has distinct competitive strengths which will help succeed in the new era MAX LIFE INSURANCE Strong Parentage Joint Venture between Max India Ltd. (leading Indian multi- business corporate) Mitsui Sumitomo Insurance Co. Ltd. (Member of MS&AD group which is amongst top 10 general insurers in the world) Strong management team with proven execution capabilities Superior Customer Retention Top quartile position among major private players in FY2015 in 13 M persistency at 79% Conservation ratio at 82% "Treating Customers Fairly" framework adopted to drive our customer centricity agenda Financially sound* Capital Base of `2,127cr Solvency ratio of 435% (one of the highest) Assets under management of `31,220 cr MAX LIFE INSURANCE Long term Savings and Protection Comprehensive product suite Long tenor products and young customers Product mix Par 57%, Non-par 15%, ULIP 28% Multi-channel Distribution model Highly efficient and productive agency channel with focus on quality of advice Best in class training capabilities within the industry Bancassurance relationship with Axis Bank is benchmark in the industry Quality & Business Excellence ISO Certification, strong feedback processes & robust 6 sigma program Focus on Service excellence & Operational efficiency#123 MAX Max Life continues to maintain top quartile performance amongst top private insurers on agency efficiency parameters Average Agent Productivity In Rs. 000's per month Average Branch Productivity In Rs. Lakhs per month MAX LIFE INSURANCE SBI Life 11.0 13.8 12.3 Max Life 11.4 6.6 HDFC Life 5.6 7.3 8.2 Reliance 7.4 7.4 Life 5.6 6.7 4.7 ICICI Pru 4.9 5.0 7.1 Birla Sunlife 3.8 6.2 Apr-Dec'13 Apr-Dec'14 Note: Agency productivity calculated using FYP (100% SP) SOURCE: Market Intelligence & Internal Estimates | Public Disclosures 16.2 16.2 Industry Performance 25.3 25.7 Majority of the insurers are known to have increased focus on productivity solutions as industry attractiveness has reduced due to agent give-get ratio declining 13.8 15.7 Max Life's Performance Continues to lead in the productivity parameters (both agent productivity and branch productivity) 12#13✓ MAX Protection Oriented, Longer Tenor Life Insurance PRODUCT TYPE PROPORTION OF Tenure POLICIES (%, by number) (Years) I GUARANTEED 2.20 6 INCOME HEALTH 0.40 14 Age of Insured (Years) 39 MAX LIFE INSURANCE 43 33.30 15 UNIT LINKED MONEY BACK 15 5.60 0.10 17 DEFERRED ANNUITY 2.20 TERM ENDOWMENT 39.60 16 16.70 WHOLE LIFE As on 31th Mar 2015 25 25 20 Max Life Average 30 30 35 34 43 33 37 41 35 Max Life Average 13#14✓ MAX Quality orientation is evidenced by significant value creation in the form of Embedded Value MAX LIFE INSURANCE The EV as at 31st March 2015 is Rs 5,232 Cr, after allowing for shareholder dividend pay out of Rs 240 Cr and share capital buy back of Rs 166 Cr in FY15. The Return on EV¹ over FY15 is 28.1 per cent while the Operating Return on EV is 22.3 per cent. The VNB written during FY15 is Rs 460 Cr and the portfolio new business margin is 23.4 per cent on APE². During FY 2015, there was an acquisition cost over-run chargeable to shareholders of Rs 37 Cr, which implies a VNB of Rs 423 Cr and a new business margin of 21.5%, post over-runs To reduce reinvestment risk in the non-par portfolio, Max Life is considering derivative arrangements. The cost of such arrangements has not been allowed as at 31st March 2015. Note: The results are developed using market consistent methodology, but they are not intended to be compliant with the MCEV Principles issued by the Stichting CFO Forum Foundation (CFO Forum) or the Actuarial Practice Standard 10 (APS10) as issued by the Institute of Actuaries of India. 1 The Return on EV is calculated before capital movements during the year. 21 Annual Premium Equivalent (APE) is calculated as 100% of regular premium + 10% of single premium (FY15 APE: 1967 Cr.)#15MAX Track record of strong performance MAX LIFE INSURANCE 2 New Business Growth - Adjusted FYP 1 and Renewal premium and conservation ratio AUM 2000 35,000 6000 90% 1948 1900 30,000 5000 1800 24769.. 31220 83% 1724 81% 81% 82% 80% 25,000 78% 20458 4000 1700 17215 20,000 1584 1600 13836 1506 3000 60% 1513 15,000 1500 10,121 2000 10,000 1400 1000 1300 5,000 3011 3751 4489 4739 5017 5599 1200 0 0 30% FY10 FY11 FY12 FY 13 FY 14 FY 15 FY10 FY11 FY12 FY 13 FY 14 FY 15 AFYP (Rs cr) ...AUM (Rs cr) Conservation Ratio Distribution Mix Renewal Premium (Rs cr) In force business and No. of policies 100% 250 5.0 4.5 29% 28% 80% 36% 34% 3.6 3.7 200 3.5 3.5 4.0 50% 4% 3.0 3.5 80 71% 8% 60% 150 227 3.0 14% 169 2.5 201 40% 22% 58% 100 2.0 49% 53% 123 155 152 41% 1.5 20% 22% 23% 50 1.0 0.5 6% 9% 9% 10% 11% 0% 0 0.0 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY 13 FY 14 FY 15 Group Bancassurance Partnership Distribution Own Channel Sum Asssured (Rs 000's cr) Policies million 1. Individual First Year Premium adjusted for 10% single pay 2. Conservation ratio = Renewal premium for the current period / (First Year + Renewal Premium for the previous period) 15#163 MAX Business Excellence and Quality Brand Claims Settlement Product Innovation Accreditations and Awards ASQ ITEA Bronze award, Cll Commendation for Business Excellence (2008, 2009 & 2010) CII 2nd Prize in Project of the Year Global Finance - Best Life Insurance Company, India 2014 Brand Excellence Award and recognition as Superbrand (2009-10,2013-14) and MAX LIFE INSURANCE CHI Confederation of Indian Industry Superbrand Powerbrand (2010), AIMA Loyalty Award 2012 for Best Loyalty Practices, Customer & Brand Loyalty Award 2011, EFFIE's Award for Aapke Sacche Advisor Campaign in 2012, CONSUMER VALIDATED Certificate of Excellence at Sabre PR Awards South Asia 2014, Golden Mikes Radio Advertising awareds 2014, Most Trusted Private Life Insurer 2013 by The Brand Trust Report ET Wealth rated Max Life claims settlement highest in the Industry at 99.58% Swiss Re commendation for claims settlement TAT (2012)s Shiksha Plus II ranked 'Best Child Plan' in India by Money Today Golden Peacock Award (2010) and Asia Insurance Industry "Innovation' Award (2009) for Max Vijay Swiss Re Funds performance OUTLOOK INDIA'SNO.1 PERSONAL FINANCE MAGAZINE Funds Performance Outlook Money award in Top Quartile across all categories (2011) MONEY Technology & Underwriting CIO 100 Award for technology implementation (2008/2009/2010/2011) Celent Model Insurer 2014 for New Work System technology platform Best Underwriting Initiative of the year (2014) by Asia Banking, Financial Services & Insurance Excellence Awards CIO100 HR Practices Amongst India's Top 100 Best Companies to Work for (2011, 2012, 2013, 2014) by Great Places to Work Ranked 7th in BT-Mercer-TNS Best Companies to Work For in 2008 16#173 MAX MAX HEALTHCARE (MHC) MAX of HEALTHCARE Caring for you... for life www.maxhealthcare.in 17#183 MAX Diagnostics, 3% – USD 77 Bn. - Insurance & Medical Equipment, 13% Healthcare Segments Share by 2012 12.0 10.0 8.0 Indian healthcare industry poised for exponential growth MAX F HEALTHCARE Caring for you... for life Bed Density per 1000 population 9.7 6.0 Pharma, 13% 4.0 2.9 Hospitals, 71% 0.0 20 2.0 0.9 India KEY HIGHLIGHTS Sri Lanka China USA Brazil 3.2 2.6 2.6 2.2 1.9 Russia Malaysia World Average • ⚫ Indian Health Industry is poised to double to USD 125 bn by 2015E, driven by a combination of ageing population, growing lifestyle diseases and medical insurance penetration as well as increasing ability to afford quality healthcare. • Realization of latent demand through growth in insurance & consumer education likely to be a key growth driver • Private hospitals to contribute USD 45 Bn by 2012 • Share of top tier private hospitals (>100 beds) is expected to grow to 40% of the total hospital segment by 2015 • Specialty hospitals are estimated to grow faster than overall industry due to rise in lifestyle diseases • India needs an investment of USD 86 Bn by 2025 to increase bed density to 2 per 1,000 population Sources: Research on India Report, 2010, Healthcare India Report, Fitch Ratings, 2010, FICCI E&Y Report, 2008 18#19& MAX Rs billion 120 100 80 60 40 Increasing prevalence and propensity are Growing Health Insurance Market... 34 % CAGR key market drivers 111 84 66 99 51 20 32 14 17 22 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 (USD '000s) 32 8.5 100 Comparative medical cost ■ India MAX of HEALTHCARE Caring for you... for life 48 UK US 24 18 19.2 7 4.5 6.4 9.8 65 Rising health insurance penetration will make healthcare affordable International Healthcare Expenditure (as a % of GDP) India 3.6 Brazil 3.4 4.2 Mexico 2.9 3.3 Australia 6.4 3.1 US 6.8 8.4 0 5 10 15 20 Open Heart Knee replacement Lap Cholcystectomy Obesity Surgery Cost differentials provide a huge untapped market for medical tourism related business opportunities Per Capita Spending (PPP) 8000 7285 6000 4000 Public Private 2000 837 233 109 0 China Brazil India USA 2992 863 UK China Brazil India USA UK Global Global On a per capita basis, both in terms of USD and PPP, India's Healthcare spend is amongst the lowest globally. However India's healthcare spending is growing at a healthy CAGR of 14%, rising from 5.5 % of GDP (2009) to 8% (2012) Sources: FICCI & E&Y Report, 2007, IRDA, B&K report, 2009, Crisil, Research on India Report, 2010 19#203 MAX Basis quality of services MHC - Mission MAX of HEALTHCARE Caring for you... for life Basis key specialty focus of Onco, Neuro, Cardiac, Ortho, MAS and Renal Sciences Basis leveraging technology for driving operational excellence & benchmark our processes with global standards Basis bed capacity & revenue Become Best Healthcare Provider in North India Align financial performance in line with the best in Indian healthcare#213 MAX Max Healthcare is focused on North India 2000 beds across the network MAX of HEALTHCARE Caring for you... for life Mohali, Punjab (213 beds) Bathinda, Punjab (200 beds) Dehradun, Uttrakhand (200 beds) Saket, New Delhi (541 beds) Patparganj, New Delhi (402 beds) Shalimar Bagh, New Delhi (280 beds) Gurgaon, Haryana (64 beds) Pritampura, New Delhi (70 beds) Noida, Uttar Pradesh (33 beds) Panchsheel, New Delhi#22& MAX MHC network Trauma Oncology Cardio Ambulatory Surgical Centre Bhatinda Mohali Delhi Oncology Gurgaon Cardiac Science Neuroscience Noida Dehradun Shalimar Bag Pitampura MAX HEALTHCARE Caring for you... for life Cardiac Sciences Trauma Patparganj Cardiac Science Neuroscience Oncology Orthopedics Saket Urology General Cardiac Science Neuroscience Oncology Mother & child MAS Orthopedics 22#23MAX Extensive focus on service excellence - a key strength for MHC Focus on service excellence & medical • Engagement with independent external agency (IMRB) for monitoring patient satisfaction MAX of HEALTHCARE Caring for you... for life quality • Strong clinical protocols Strong IT system Well established brand Professionally run & Clinician engagement Investment in CRM; EHR; ERP ⚫ Leveraging IT for driving cost & operational efficiencies IT Opex accounts for 1% of revenue · Strong presence in North India with brand recognition Pan India Won numerous accolades including accreditations by the NABH, NABL and awards by FICCI Increased bandwidth for future growth & governance standards Involvement of clinicians in strategic decision making through doctor's governing bodies such as GMAC; HMEC etc Focus on talent & training 2,100+ doctors; 3,100 nurses & 3,000 other trained personnel • DNB (Diplomate of National Board) & fellowship programs OTJ trainings for nursing & paramedic care 23#243 & MAX MHC's Governing Philosophy... Clinical excellence - employer of choice for physicians Information technology and modern management techniques Service excellence MAX of HEALTHCARE Caring for you... for life GMAC1 Provide Strategic direction HMAC (one for each hospital) Drive hospital specific decisions Doctor Councils Idea exchange forum 24#253 MHC delivering superior performance MAX across all key metric & MAX of HEALTHCARE Caring for you... for life Revenue and Contribution Margin 1500 65.0% 63.7% Avg. operational beds and Avg. revenue per occupied bed day* 1350 64.3% 1800 35000 1200 63.0% 1600 25126 26208 30000 1050 900 750 61.2% 59.6% 59.2% 1400 28814 23585 61.0% 1200 20431 21558 25000 20000 1000 600 59.0% 1680 800 1472 15000 1302 450 57.2% 600 300 57.0% 926 992 10000 400 751 5000 150 534 685 824 1149 1407 1740 200 0 55.0% 0 0 FY10 FY11 FY12 FY13 FY 14 FY 15 FY10 FY11 FY12 FY13 FY 14 FY 15 Revenue (Rs cr) ..◉Contribution Margin 1 Avg. operational beds ...Avg Revenue per bed day (Rs) Inpatient Trends Outpatient Trends 150000 100000 5000 1000 92859.. 135000 87522 98565 807 862 84635 120000 4000 735 676 800 105000 76838 80000 565 594 90000 68806 3000 600 75000 131756 4448 60000 112668 2000 3636 3800 400 45000 95114 60000 2906 3103 30000 59130 64335 69375 1000 2250 200 15000 0 40000 0 0 FY10 FY11 FY12 Inpatient Transactions FY13 FY 14 FY 15 FY10 FY11 FY12 FY13 FY 14 FY 15 Avg. revenue per patient (Rs) Outpatient transactions (000's) ...Avg. revenue per patient (Rs) *Average revenue per occupied bed day has been calculated on inpatient revenue 25#263 & MAX MHC Accreditations and Awards - NABH/NABL Accreditation MAX F HEALTHCARE Caring for you... for life ISO 14001:2004 & 18001:2007 at Patparganj, Pitampura & Shalimar Bagh ISO 9001:2008 at Max Heart & Vascular Institute, Patparganj, Noida, Pitampura, Shalimar Bagh, Panchsheel Park & Home Office. National Standards: Mark of Excellence : 636 aspects are addressed: •Patient Rights: respect, transparency, consent •Standardized protocols in all departments: over 200 SOPs •Patient safety •Measurement & Evaluation ⚫ Staff Training and safety: on all SOPS Achievements: 2012-13: MSSH: Shalimar Bagh: NABH New Accreditation MSSH, Mohali: NABH New Accreditation (awaited shortly) MSSH, Saket: NABH Reaccreditation MSSH, Patparganj: NABH Surveillance Accreditation Blood Bank: MSSH, Patparganj: NABH Reaccreditation Pathology Lab: MSSH, Patparganj: NABL Reaccreditation Pathology Lab, MSSH, Gurgaon: NABL Reaccreditation DNV DET NORSKE VERITAS MANAGEMENT SYSTEM CERTIFICATE Certe No 11438012AQINDRA Twitch MAX SUPER SPECIALITY HOSPITAL (A UNIT OF DEVKI DEVI FOUNDATION) BUREAU VERITAS Certification BUREAU VERITAS Certification MAX SUPER SPECIALITY HOSPITAL (A UNIT OF BALA MEDICAL & DIAGNOSTIC RESEARCH CENTRE MAX SUPER SPECIALITY HOSPITAL (A UNIT OF BALAJE MEDICAL & DIAGNOSTIC RESEARCH CENTRE) MAX 108-A, INDRAPRASTHA EXTENSION PAYPARGANJ DEL-110 082 INDIA Bureau Ventas Centication certify that the Management S of the above organudon has been died and found to be in accordance wah the requirements of the management agem abandarde detailed below Standwade ISO 9001:2008 & ISO 14001:2004 100-A INDRAPRASTHA EXTENSION MAPARGAN, DELHI-11006 DIA Bureau Vertex Cortication datify that the Management System of the above organisation been used an ound to no mundume with fe requirements of the system standard decaded below. Slamlard BS OHSAS 18001:2007 MHC is committed to ensure that all units are complaint to the National Standards Radiation Therapy Radiation Oncology Department, Saket: Recognition of Quality Standards conforming to International Atomic Energy Agency / World Health Organization Under leadership of Dr Anil K Anand & Mr. Munjal Centre of Excellence Recognition to MHC for Treatment of Heart Attacks By Lumen Global 2013 Under leadership of Dr. Roopa Salwan CAMAL Best Corporate Website maxhealthcare.in 3rd India Digital Awards by Internet & Mobile Association of India Awarded on 17th Jan, 2013 Past winners: www.mahindra.com and www.volkswagon.co.in MHC won among 200 Nominations in the Award Category IAMAI jury evaluated entries based on : Content Structure and Navigation Visual Design Functionality Interactivity Overall Experience Dr. Arati Verma selected as Co Chairperson of Technical Committee of NABH 26#273 ✓ MAX Management bandwidth for M&A available Our Growth Philosophy & MAX of HEALTHCARE Caring for you... for life Value adding deals will be pursued in consonance with Shatabadi Strategy Phased growth to ensure absolute operating Profit is not depressed Asset light growth strategy preferred; attractive PPP arrangements to be explored MHC expansion by 2020... • 2,000 beds → 4000 beds О Addition to bed capacity in existing hospitals in NCR will be key focus in light of new FAR rules • 12 hospitals → 16 hospitals Scope for expansion in existing units - 500 beds (Saket, Patparganj, Shalimar Bagh and Mohali) Brown field expansion - Acquisition of Pushpanjali Crosslay (550 beds) Green-field hospital at New Chandigarh (Mullanpura) - 300 beds Destination Oncology hospital at Greater Noida - 300 beds Management of multi-specility hospital at Greater Noida - 300 beds Further brown-field and green-field may be explored#283 MAX MAX BUPA HEALTH INSURANCE (Max Bupa) Max Bupa Health Insurance A Max India Joint Venture www.maxbupa.in 28#293 MAX . A symbiotic partnership in the health insurance space Max Bupa Health Insurance Max Bupa Health Insurance A Max India Joint Venture ✓ MAX India's leading conglomerate Successful track record of building businesses Expertise in life insurance, health insurance and healthcare businesses Group revenues in FY 2014- Rs 11,683 crores Local perspective of the Indian market A Max India Joint Venture · . Bupa h Global Health Insurance provider with market leadership in UK, Spain & Australia 12 million customers in over 190 countries Group revenues in 2012 - £8.5 billion and PBT of £600 million Employee base of over 52,000 · Voted as best international health care provider in 2013 Leveraging the strengths of both partners to build a robust and profitable enterprise with focus on service excellence 29#30✓ MAX Industry is poised for an exponential growth Max Bupa Health Insurance A Max India Joint Venture Key drivers of growth Increase in affordability Increasing affordability with rise in income levels and healthcare spend per capita Increase in willingness Rapid scale-up of hospitals and expansion outside metros Take-off of comprehensive insurance coverage products e.g. secondary health care, out-patient etc. Higher need with rise in incidences of chronic diseases (viz. cancer, heart disease) Acceptability of insurance with increasing awareness Increase in ticket size Rise in healthcare costs with market inflation Indian Health Insurance Market (Rs. In Billion) 500 464 GWP (Rs. in Billion) 450 404 400 351 350 305 266 € 300 231 250 192 160 200 150 51 66 83 111 131 100 32 22 50 17 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 > 2014 2015 2016 2017 2018 2019 2020 Industry grew by 15% in FY 2013-14 marginally lower than that in the previous fiscal (17% in FY 12-13) Growth driven equally by both Private as well as public sector players (YTD Mar'14: 14% and 15% respectively) • Insurers focusing on containing loss ratio's and improving profitability • Standalone health insurers growing aggressively SOURCE: Team analysis, WHO statistics, NCAER, McKinsey Urbanisation report, Government economic survey, BRIC report 30#31MAX Max Bupa to capitalise on this opportunity through innovative product and superior service offering Technology & automation ahead of curve Simplicity, Transparency: Hassle free claim processing; No underwriting at point of claim Value for money: Comprehensive benefits for the money paid Checkups on renewal Health and wellness focus Relationship Manager for Gold & Platinum Customers Good Hospitalization experience: Cashless processing; Νο ΤΡΑ 闻 Max Bupa Health Insurance A Max India Joint Venture Comprehensive benefits Support for Family's health 24/7 health line Access to information Health Coach 31#323 MAX Extensive focus on key growth levers to maximize long-term value Leveraging Max India and BUPA capabilities • Max India - strong understanding of Indian Insurance landscape, learning's from Max Life's success and leverage synergies with Max Life and MHC • BUPA - Product design, underwriting and clinical expertise Bancassurance would catapult growth • Opened up to Standalone Health insurers in February 2013 • 4 tie-ups - Standard Chartered, Deutsche, Federal Bank and Ratnakar Bank successfully launched Pricing for profitability • Value based pricing based on data and analysis • Selective targeting of profitable Group business Continuous product innovation Max Bupa Health Insurance A Max India Joint Venture Factsheet* - Max Bupa Gross Written Premium ^ INR 373 Cr. Customer Base^ ~800K Number of Employees ~1,500 Number of Agents ~9,000 • Build a culture of innovation and expertise. • Focus on wellness and specialized products with no age limit and high sum assured. • Emphasis on Health Risk Management Number of Offices 26 Focused customer profile • Focus on the mass affluent+ customer base • Robust underwriting procedure For the year ended March 31, 2015 Partner Hospitals ~3,500 32#333 MAX MAX SPECIALITY FILMS (MSF) MAX SPECIALITY FILMS Enhancing quality...always www.maxspecialityfilms.com 33#343 MAX Industry marked by robust global and domestic demand Global Demand FY 15 Other App, 10% Labels, 8% Tape, 16% Tobacco, 2% Confectionary, 5% Biscuits, 14% Other Foods, 10% Pasta, 15% Key Highlights MAX SPECIALITY FILMS Enhancing quality...always (KG's) Global per capita consumption of BOPP 1.9 1.6 Snacks, 20% 1.2 •Growth of flexible packaging Industry - 12-14% in India 2 BOPP per capita consumption in India lower than the global average 0.8 0.5 1.6 0.16 Western China Europe North America Asia Latin America India World Average •Per capita consumption of BOPP in India relatively lower •Growth in FMCG and organized retail and changing urban life styles & rural demand. •Competitive pricing and costs spurs exports from India and restricts imports. •Shift from PET to BOPP (Indian BOPP: PET products ratio around 1:2 against 3:1 globally) •BOPP films are recyclable and have a competitive advantage over other plastic and traditional products •Convertor industry growing & India becoming global hub for supplies of Flexible Laminates 34#353 MAX MSF uniquely positioned to be India's most admired & preferred global supplier of Specialty Polymer films MAX SPECIALITY FILMS Enhancing quality...always COMMODITY SPECIALITY HERMETIC SEAL, ULTRA HIGH BARRIER PACKAGING, INDUSTRIAL, TEXTILES HIGH SPEED PACKAGING, LAMINATION METALLISED FILM PACKAGING, LAMINATION, HIGH BARRIER OUR STRENGTH THERMAL & COATED FILM PACKAGING, DOCUMENT PROTECTION ENHANCEMENT, PRESERVATION VIZ. GREETING CARDS Max Speciality Films is much more than packaging... Established in 1990 MSF manufactures 'Speciality' BOPP Polypropylene) & Thermal Lamination Films (Bi- axially Oriented Committed to innovation, product quality and service excellence • Deep Partnerships with Brands and converters in India & Abroad Significant market share of converts 60-70% output served to FMCG industry Geographical footprint covers Europe, the middle East, the US, Latin America, Africa, Australia, South Korea, CIS countries & SAARC 35#36MAX Business evolution & infrastructure REVENUE & QUANTITY GROWTH MSF Growth - FY07-14 Revenue CAGR: 24 % Quantity CAGR: 22 % EBITDA CAGR: 15% CAPACITY GROWTH 4 METALLISERS 4 BOPP LINES 3 EXTRUSION LINES 3 COATING LINES BOPP LINE 1 (3.6 KTA) MAX SPECIALITY FILMS Enhancing quality...always METALIZER 1 THERMAL LINE 1, BOPP LINE 2 METALIZER 3 THERMAL LINE 3, LEATHER FINISHING FOIL 4 EXPANSION LINE 5 METALIZER 5 LEATHER FINISHING FOIL METALIZER 2 THERMAL LINE 2 BOPP LINE 3 LINE 4, METALIZER 4 (54 KTA) 36#373 MAX Visibility in Top Brands You will Find MSF films in... TC Nestle ITC Limited Cadbury Coca-Cola EE EVEREST FLEXIBLES (PTY) LTD P&G BATOOK MAX SPECIALITY FILMS Enhancing quality...always . Mondelez, International BRITANNIA Eat Healthy Think Better Hindustan Unilever Limited MARS PP incorporated HUHTAMAKI TAKING PACKAGING FURTHER PERFETTI van Melle Frito Lay food for the fun of it! PARLE PRIYAGOLD GPI Limited marico P POSITIVE PACKAGING INDUSTRIES LIMITED It pays to be positive A TC ITC Limited парсо amcor CUFLEX श्रीs MOLDTEK Markets we serve... Food Packaging MOLD-TEK Packaging Limited (Formerly known as Moldtek Plastics Lad.) Omax PEPSICO PAHARPUR WRIGLEY Non Food Packaging Industrial Packaging Leather Industry 37#383 & MAX Awards & Recognition GOLDEN PEACOCK WORLD STAR YEAR -2011 WORLDSTAR VALUE PACK VALUE PACK PACK VALUE PACKE VALUE PACKLE PACK Dettol PAC ettol Lays Lays Ba Baked Baked Cream, Herb & Onion Flavon Original Salted VALUE PACK Deko VALUE PACK 2 PACK VALUE PACH VALUE PACKE PACK Dettol CK Cadbury DAIRY MILK PAG INDIA STAR YEAR 2010 YEAR -2010 YEAR -2012 Ba Lays Baked Alin Alive Aliva Aliva MAX SPECIALITY FILMS Enhancing quality...always Cadbury Callory Callery A DAIRY DAIRY DAIRY MILK MILK MILK Silk Silk Silk WISE ONION GARLIC NTENE PANTENE should Rejoice Rejoice Cream, Herb & Onion Flav YEAR 2012 Lay's Baked Original Salted Lunch Bar much much moret Calave Lunch Bar much more! FRUITO NUT boulde 38 shonalck 3#393 MAX MAX INDIA FOUNDATION (MIF) MAX INDIA FOUNDATION Making a difference... to life www.maxindiafoundation.org 39#403 MAX • MAX INDIA FOUNDATION _ Making a difference... to life Max India Foundation Corporate Social Responsibility (CSR) Arm of the Max India Group focused on providing quality healthcare to the underprivileged, facilitating awareness of health related issues, and promoting and fostering an eco- friendly healthy environment. Awards Received:- •Golden Peacock Global CSR Award 2011 •Global CSR Awards at the World CSR Day 2012 •Golden Peacock Award for CSR 2012 Locations Factsheet* - MIF NGO Partners Beneficiaries ⚫"Best CSR Practices 2013" at 7th Indy's Award ⚫"Best CSR Practices 2013"at the World CSR Day Initiatives • "Golden Peacock Award for CSR 2013 "Outstanding Social Impacts" Award 2014 at the World CSR Day Congress • Best Overall CSR Practices 2015" at the World CSR Day 500 367 MAX INDIA FOUNDATION Making a difference... to life 12,33,233 • • Immunization Artificial Limbs & Polio Callipers Health Camps • Surgeries & Treatment • Palliative Care • Lifeline Express Camps • Multi-speciality Camps Cancer Awareness Environment Awareness * Till Feb 2015 ANCE MAY W FREE HEALTH CHECK CAMP स्वास्थ्य सिटि IR-4000 Under the 'Village Adoption Scheme' being promoted by Government, MIF adopts Dhakrani, a village in Dehradun district to address healthcare related needs including waste disposal and sanitation. 40#413 MAX Annexures 41#42MAX Consolidated Financial Snapshot^ (Q4 & FY15) (Rs. Cr.) Particulars Quarter ended Y-o-Y Year ended Y-o-Y Mar-15 Mar-14 Growth Mar-15 Mar-14 Growth Total Revenue Operating Revenue EBITDA 4,121 3,740 10% 14,877 11,683 27% 3,112 2,932 6% 10,048 9,140 10% 131 121 8% 749 385 48% PBT 84 62 34% 512 212 87% Particulars Net Worth Preference Shares Loan Funds Fixed Assets (Net Block) Treasury Corpus (Debt M. Funds & Term Deposits) Life Insurance Investments (AUM) 31-Mar-15 31-Mar-14 Growth 3,302 2,984 14% 65 544 702 -23% 867 1,495 -42% 683 247 191% 31,200 24,716 26% • Max Healthcare results consolidated on proportionate basis as it becomes a JV as opposed to a subsidiary earlier impacting revenue and PBT growth • Gain from stake sale in Max Healthcare to Life Healthcare of Rs. 286 Cr. included in revenue and Rs 256 Cr. included in EBITDA/ PBT 42#433 MAX Vision & Mission Statement MAX LIFE INSURANCE Vision To be the most admired life insurance company by securing the financial future of our customers Mission Goals We Stand for We are an honest life insurance company, committed to doing what is right We serve our customers through Long term savings, protection and retirement solutions, delivered by our high quality Agency & Multi channel Distribution Partners ■ We are a business with strong social relevance and contribute to Society by supporting causes in health and wellbeing. FY 2020-21: • Touch 1 Crore lives and grow by 3 times in 8 years • Defined targets for Revenue, Profit and AEV Financial Strength Service Excellence Capital Value Driven Culture Quality of Advice Superior Human Corporate Governance Caring Credibility | Collaborative | Values Integrity Excellence#443 & MAX Market Position Insurance Sales MAX LIFE INSURANCE Rank Company Individual New Business Premium (Rs. Cr) Premium Adjusted for 10% single premium Apr'14-Mar'15 Apr'14-Mar'14 Growth (%) Private Market Share 1 ICICI Prudential 4,596 3,253 41% 23.0% 2 SBI Life 3,120 2,811 11% 15.6% 3 HDFC Life 2,967 2,374 25% 14.8% 4 Max Life 1,948 1,769 10% 9.7% 5 Reliance Life 1,202 1,121 7% 6.0% 6 Bajaj Allianz 775 1,002 -23% 3.9% 7 Birla Sunlife 738 837 -12% 3.7% 8 PNB MetLife 712 577 23% 3.6% 9 Kotak Life 617 465 33% 3.1% 10 Exide Life 441 500 -12% 2.2% Others 2,874 2,536 13% 14.4% Private Total 19,992 17,243 16% LIC 20,774 28,520 -27% Grand Total 40,765 45,763 -11% Market Share of Pvt. Players 49.0% 37.7% Source: Life Insurance Council | IRDA Website 44#45MAX EV Movement analysis - March 31, 2014 to March 31, 2015 market consistent methodology MAX LIFE INSURANCE Amounts in Rs Cr 254 405 123 460 5,232 Non- 400 4,401 Operating variance operating variance Capital movements Value of new business 2,115 Unwind 1,945 2,456 3,117 Opening EV Denotes increase to EV Denotes decrease to EV Closing EV Value of in force business Net Asset Value Operating return on EV of 22.3%, driven mainly by new business growth and unwind of discounting. Non-operating return on EV of 5.8%, driven mainly by the increase in market value of assets over the year. Note: Figures may not add up due to rounding. 45#46MAX Overview of the components of the EV as at 31st March 2015 MAX & LIFE INSURANCE VIF Time value of financial options and guarantees Cost of residual non- Present Value of Future Profits Rs 3,612 Cr TVFOG Rs 2 Cr hedgeable risks Note: Figures may not add up due to rounding. CRNHR Rs 436 Cr Frictional cost FC Rs 57 Cr VIF Rs 3,117 Cr Net worth and EV Market value of Shareholders' owned assets over liabilities Net Worth Rs 2,115 Cr EV Rs 5,232 Cr 46 46#47MAX Sensitivity analysis as at 31st March 2015 MAX INSURANCE EV VNB Sensitivity Results Value (Rs Cr) % change Value (Rs Cr) % change Base Case Downward shift of 100 bps in the 5,232 460 5,347 2% 419 (9%) risk free interest rate curve Note1 10% increase in expense 5,178 (1%) 443 (4%) 10% increase in mortality 5,168 (1%) 449 (2%) 10% increase in lapse / surrender 5,127 (2%) 435 (6%) 10% immediate fall in equity 5,167 (1%) 460 negligible values Notes: 1. Reduction in interest rate curve leads to an increase in the value of assets which offsets the loss in the value of future profits. 2. Reserving assumptions are unchanged in all the sensitivities. 47#48MAX Key Assumptions (1/2) MAX LIFE INSURANCE Economic Assumptions ■ The EV is calculated using risk free (government bond) spot rate yield curve taken from FIMMDA¹ as at 31st March 2015. The spot rates beyond the longest available term of 30 years are assumed to remain at 30 year term spot rate level. ■ No allowance has been made for liquidity premium because of lack of credible information on liquidity spreads in the Indian market. ■ A flat rate adjustment is made to the yield curve such that the market value of government bonds is equal to discounted value of future cash flows of those bonds. Samples from the un-adjusted 31st March 2015 spot rate yield curve used: Year 1 2 3 4 5 10 Rates 8.01% 7.96% 7.93% 7.89% 7.89% 7.95% 15 8.04% 8.12% 20 25 30+ 8.03% 7.79% Demographic Assumptions The lapse and mortality assumptions are approved by a Board committee and are set by product line and distribution channel on a best estimate basis, based on the following principles: Assumptions are based on past experience and expectations of future experience given the likely impact of current and proposed management actions on such assumptions. ■ Aims to avoid arbitrary changes, discontinuities and volatility where it can be justified. ■ Aims to exclude the impacts of non-recurring factors. 1 Fixed Income Money Market and Derivatives Association of India 48 48#49MAX Key Assumptions (2/2) MAX LIFE INSURANCE Expense and Inflation ■ Maintenance expenses are based on the recent expense studies performed internally by the Company. The VIF is reduced for the value of any maintenance expense overrun in the future. The overrun represents the excess maintenance expenses expected to be incurred by the Company over the expense loadings assumed in the calculation of PVFP. Expenses are denominated in fixed Rupee terms and are inflated at 6.25% per annum. ■ The commission rates are based on the actual commission payable (if any). Tax The corporate tax rate is assumed to be 14.42% for life business and nil for pension business. ■ For participating business, the transfers to shareholders' resulting from surplus distribution are not taxed as tax is assumed to be deducted before surplus is distributed to policyholders and shareholders. ■ The mark to market adjustments are also adjusted for tax. 49 49#50MAX Max Life Insurance MAX LIFE INSURANCE Key Business Drivers Quarter Ended Y-o-Y Year Ended Unit Mar'15 Mar'14 Growth Mar'15 Mar'14 Y-O-Y Growth a) Individual Adjusted Premium (APE*) Rs. Cr. 668 607 10% 1,948 1,769 10% b) Gross written premium income Rs. Cr. First year premium Renewal premium 658 623 6% 1,925 1,787 8% 1,845 1,651 12% 5,599 5,017 12% Single premium 222 159 39% 648 474 37% Total 2,724 2,433 12% 8,172 7,279 12% c) Shareholder Profit (Pre Tax) Rs. Cr. 121 121 477 503 -5% d) Policy Holder Expense to Gross Premium % 12.8% 14.6% 180 bps 16.1% 17.4% 130 bps e) Conservation ratio** % 81.1% 83.7% (260 bps) 82.3% 80.0% 225 bps f) Average case size (Agency) Rs. 36,511 30,316 20% 34,007 29,127 17% g) Case rate per agent per month No. 0.36 0.41 -11% 0.31 0.41 -24% h) Number of agents (Agency) No. 42,505 42,620 i) Paid up Capital (Incl Share Premium & capital reserve)*** Rs. Cr. 2,013 2,127 -5% j) Individual Policies in force No. Lacs k) Sum insured in force (Including Group) Rs. Cr. 36.7 36.3 1% 2,26,540 2,01,098 13% *Individual First Year Premium adjusted for 10% single pay **Conservation Ratio = Renewal Premium for the current period / (First Year + Renewal Premium for the previous period) 50 *** Due to buyback of 1% stake from Axis Bank as per the agreed arrangement and proportionate stake from MSI to maintain foreign holding at 26%#51MAX Padma Shri Dr. Rustom Phiroze Soonawala MD, FRCS, FRCOG Chairman, Obstetrics & Gynaecology Padma Shri Dr. Pradeep K Chowbey MBBS, MS, FIMSA, FAIS, FICS, FACS, Doctor of Science (Honoris Causa) Chief- Surgery & Allied Surgical Specialties MHC - Key Physicians Director - Minimal Access, Metabolic & Bariatric Surgery Dr. S.K.S. Marya (M.S., DNB, Mch, FICS) Chairman - Orthopaedics & Joint Replacement Dr. A.K.Singh (M.S., Mch, Diploma WFNS) Director - Max Institute of Neurosciences, Dehradun Dr. Harit Chaturvedi (MS, MCH) Chief Consultant & Director - Surgical Oncology Dr. Anurag Krishna MS, MCh., FAMS Director, Paediatrics and Paediatric Surgery ■ Eminent and Internationally renowned Obstetrician & Gynaecologist. Former President of the Federation of Obstetricians and Gynaecologists MAX F HEALTHCARE Caring for you... for life Prior to joining MHC, he was Chairman of the Minimal Access Metabolic & Bariatric surgery center, Sir Ganga Ram Hospital. He has been visiting faculty to the best Medical Institutions like Memorial Sloan Kettering Cancer Hospital, New York, John Hopkins Institute in USA & Royal Marsden Cancer Hospital, in U.K. Dr. Chowbey has done his MBBS followed by MS, General Surgery (1977) from Govt. Medical College, Jabalpur & MNAMS, National board of Examination. ■ Renowned Joint Replacement Surgeon having 30 years experience. Pioneered bilateral Hip and Knee Joint replacement. Author and teacher par excellence. Renowned Neuro Surgeon having 40 years experience. ■ Pioneer in the field of neurosurgery, credited with many 'firsts' in India - Median Corpectomy for Cervical Spondylosis; Direct Trans Nasal Trans Sphenoidal removal of Pituitary Tumors and many others. Also won BC Roy Award amongst others ■ Author and teacher par excellence. ■ Having 25 years of experience in Surgical Oncology. ■ Served institutions of repute like Rajiv Gandhi Cancer Institute, Indraprastha Apollo Hospitals, Batra Hospital & Medical Research Centre, New Delhi. 20 years experience in Paediatric surgery -complex congenital malformations ■ Published 50 scientific papers in leading national and international journals Served as Member of the Board of Management of Sir Ganga Ram Hospital. 51#52M MAX Max Healthcare* & MAX of HEALTHCARE Caring for you... for life Key Business Drivers Unit Quarter Ended Year Ended Y-o-Y Growth Y-o-Y Growth Mar'15 Mar'14 Mar'15 Mar'14 Rs. Cr a) Revenue (Gross) Inpatient Revenue Day Care Revenue Outpatient Revenue Other Operating Income Total b) Profitability Contribution (%) EBITDA EBITDA (%) Profit c) Patient Transactions (No. of Procedures) Inpatient Procedures Day care Procedures Outpatient Registrations d) Average Inpatient Operational Beds e) Average Inpatient Occupancy f) Average Length of Stay g) Avg. Revenue/Occupied Bed Day (IP) 335 279 20% 1,299 1,046 24% 15 14 9% 60 50 21% 102 84 21% 383 307 25% (1) (2) 4 451 377 20% 1740 1407 24% % 64.8% 63.5% 130 bps 64.3% 63.7% 70 bps Rs. Cr 43 34 27% 170 113 50% % 9.6% 9.2% 40 bps 10.0% 8.3% 170 bps Rs. Cr 2 (4) (6) (45) No. 33,113 28,786 15% 131,756 112,668 17% 6,385 5,243 22% 26,235 18,568 41% 1,143,586 994,698 15% 4,447,883 3,799,729 17% do ? No. 1,745 1,526 14% 1,680 1,472 14% 71.8% 74.3% (150 bps) 73.5% 74.3% (80 bps) No. Rs. 3.40 29,717 3.59 26,996 5% 3.42 3.54 4% 10% 28,814 26,208 10% *The above results are for MHC Network of hospitals and includes results for Max Super Specialty Hospital, Saket, unit of Devki Devi Foundation and Max Super Speciality Hospital, Patparganj, unit of Balaji Medical and Diagnostic Research Centre 52#53MAX Max Bupa Health Insurance Max Bupa Health Insurance A Max India Joint Venture Quarter Ended Key Business Drivers Unit Y-o-Y Year ended Y-O-Y Mar-15 Mar-14 Growth Mar-15 Mar-14 Growth a) Gross written premium income First year premium* Renewal premium Total b) Net Earned Premium Rs. Cr 48 50 (4%) 145 163 (11%) 76 42 52 44% 228 146 56% 124 102 21% 373 309 21% Rs. Cr 81 88 68 19% 315 237 33% c) Net Profit / Loss Before Tax Rs. Cr (27) (50) (93) (133) d) Claim Ratio (B2C Segment) % 49% 51% 170 bps 50% 50% (40 bps) e) Av. premium realization per life (B2C) Rs. 6,538 5,570 17% 6,364 5,393 18% f) Conservation ratio (B2C Segment) % 89% 86% 320 bps 90% 85% 500 bps g) Number of agents No. 8,909 11,401 (22%) h) Paid up Capital Rs. Cr 791 670 18% * B2C First year premium growth at 36% for Q4FY15 53#54MAX Max Specialty Films MAX SPECIALITY FILMS Enhancing quality...always Key Business Drivers Unit Quarter Ended Y-o-Y Year ended Y-o-Y Mar-15 Mar-14 Growth Mar-15 Mar-14 Growth a) Sales Quantity - BOPP Tons 12,085 11,222 8% 44,970 46,354 -3% b) Revenue Rs. Cr. 190 195 -3% 755 746 -1% c) Profitability: Contribution Rs. Cr. 49 33 48% 149 121 23% Contribution Margin % 26% 17% 20% 16% EBITDA Rs. Cr. 24 15 57% 77 57 35% EBITDA Margin % 12% 8% 10% 8% PBT Rs. Cr. 6 4 -50% 12 14 -14% Margin % 3% 2% 2% 2% • 3% drop in Sales Quantity is predominantly because of shift to high margin yielding thin films • Higher realisations per unit coupled with cost rationalisation, lead to 35% higher EBITDA vis-à-vis FY15 . Decline in PBT is on account of higher interest cost on fresh borrowings consequent to transfer of MSF to a subsidiary resulting in liquidity of Rs. 110 cr. for Max India • Continues to aggressively tap growth opportunities with key FMCG brands 54#55MAX Disclaimer This presentation has been prepared by Max India Limited (the "Company"). No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in the presentation. The past performance is not indicative of future results. Neither the Company nor any of its affiliates, advisers or representatives accepts liability whatsoever for any loss howsoever arising from any information presented or contained in the presentation. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. The presentation may also contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from our expectations and assumptions. We do not undertake any responsibility to update any forward looking statements nor should this be constituted as a guidance of future performance. This presentation does not constitute a prospectus or offering memorandum or an offer to acquire any securities and is not intended to provide the basis for evaluation of the securities. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the securities shall be deemed to constitute an offer of or an invitation. No person is authorised to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorised by or on behalf of the Company any of its affiliates, advisers or representatives. The Company's Securities have not been and are not intended to be registered under the United States Securities Act of 1993, as amended (the "Securities Act"), or any State Securities Law and unless so registered may not be offered or sold within the United States or to, or for the benefit of, U.S. Persons (as defined in Regulations S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the applicable State Securities Laws. This presentation is highly confidential, and is solely for your information and may not be copied, reproduced or distributed to any other person in any manner. Unauthorized copying, reproduction, or distribution of any of the presentation into the U.S. or to any "U.S. persons" (as defined in Regulation S under the Securities Act) or other third parties (including journalists) could prejudice, any potential future offering of shares by the Company. You agree to keep the contents of this presentation and these materials confidential. 55#563 MAX MAX INDIA LTD. Max House, Okhla, New Delhi - 110 020 Phone: +91 11 26933601-10 Fax: +91 11 26933619 Website: www.maxindia.com 56