1 Max India Limited Investor Presentation Disclaimer This presentation may 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 because of factors listed in the management discussion and analysis section of our Annual Report. We do not undertake any responsibility to update any forward looking statements nor should this be constituted as a guidance of future performance.
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Max India Limited - Max Financial Services Limited · Max India Limited is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service
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Max India Limited
Investor Presentation
DisclaimerThis presentation may contain statements that are forward looking. These statements are basedon current expectations and assumptions that are subject to risks and uncertainties. Actualresults could differ materially because of factors listed in the management discussion andanalysis section of our Annual Report. We do not undertake any responsibility to update anyforward looking statements nor should this be constituted as a guidance of future performance.
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Max India Limited is a multi-business corporate, driven by the spirit of Enterprise,focused on Knowledge, People and Service oriented businesses of Life Insurance,Healthcare and Clinical Research. Max also maintains interests in Specialty PlasticProducts for the packaging industry and Healthcare Staffing
Core Others
VISION
“To be one of India’s Most Admired Corporates for Service Excellence”
MISSIONEstablish niche service businesses in Life Insurance, Healthcare and Clinical ResearchLife Insurance and Healthcare……..convergence!Rank amongst top 3 players in each nichePartner with best-in-class world leadersCreate service excellence in all businesses
Max India – An Introduction
BSE Scrip Code: 500271, NSE Ticker: Max, Bloomberg: Max IN
• Enable retention of patient traffic• Enable ‘start-to-finish’ comprehensive, seamless care: Consult and Diagnostics,
Diagnostic tests, pre-operative work up, operations, post-operative care.
Max Healthcare Model
Tertiary• Max Heart & Vascular
Institute• Max Super Specialty Hospital
• Heart and Vascular• Neurosciences• Joint Replacement &
Orthopaedics• Obstetrics and Gynaecology• Paediatrics
Secondary • Max Hospitals – 4• High-end Diagnostics:
MRI, CT• Doctor Consultation• Surgery and inpatient
facilities
Primary • Dr. Max Clinics/Implants – 10
• Specialist doctor consultation and a full time nurse.
• Basic diagnostics like X-Ray, ECG and Pathology Collection
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Key Public MessagesMedical ExcellenceService Excellence – Total ExperienceIn your community - near youHigh-end tertiary care in Private sector
ComprehensivenessReferral system – National & InternationalValue for moneyPartnering with medical communityCaring place to work Corporate Social Responsibility
VISIONDeliver world class healthcare with a service focus, by creating an institution committed to the highest standards of medical & service excellence, patient care, scientific knowledge and medical education.
MISSION
GOALS• Profitable without profiteering.• Seamless linkage between secondary and tertiary care.• Innovate to address wider market.
KEY
OBJECTIVES
STRATEGIES
WHAT – Medical USP’s ; Best in class ; Comprehensive care ; Convenience & accessibility ; Seamless service ; Patient records ; Consistent and customised care ; Service excellence ; Preventive health ; Caring place to work.
HOW – Train train train ; Partnership with Medical community ; Principal choice for physicians ; Never ending focus on medical and service excellence ; Build lasting customer relationships ; Primary, Secondary and Tertiary care through Co. managed / partnership; No franchising.
• Create unparalleled standards of Medical & Service Excellence• Care provider of FIRST CHOICE• Principal Choice for Physicians• Ethical Practices • Create National Centre of Excellence for select Super Specialties.• Build towards international ‘reach’ by creating patient confidence through
• Courtesy & Caring always• Customer comes first• Do it right first time• International image standards• Efficient process management• Direct & open communications • Create trust• Fun at work• Compliance
• ISO 9001 : 2000• JCIA Accreditation• Credentialing / Grant
of privileges• Employee productivity• Employee Engagement survey• Service Dashboard - Sparsh• NABH Accreditation• NABL certified Lab system.
INITIATIVES• WHAT- HOW - WHEN - COST - LINKAGE• Shared responsibility with single accountability.• Unique approach through: - International benchmarking. - Walk the Talk - IT Capability- Medical – Management Alignment. - Rehearse rehearse - Cost Efficiency- Train train train. - Mystery customers - Attrition Management
Focused NCR centric delivery – for operational excellenceClose to customer – geographyComprehensiveness of medical services (except organ transplant and radio therapy)Leadership in 5 super-specialties in tertiary care-‘Star’ physicians supported by a group of high quality physicians
EthicsMemorable brand experience-‘Star’ and quality physicians-Infrastructure and equipment-No surprises – cost of care, pricing, medication-Signage-Look – feel – smell - touchInnovation to bring in walk-in customers-Location location-Max Health Plan under roll-out-Other new programs ie Golden Years, Life Membership, PrepaidHigh quality nursing and paramedic care supported by nursing and paramedic college
Technology and IT (in 18 months)Extensive emphasis on training
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Mr. Analjit Singh Chairman and Managing Director
Mr. B Anantharaman Joint Managing Director, Max India Limited
Dr. Ashok Seth
Mr. Mukesh Shivdasani
Dr. Narottam Puri
Mr. KK Mathur
Dr. RP Soonawala
Dr. Pervez Ahmed
Mr. Aman Mehta
Mr. Anuroop Tony Singh
Mr. Rajesh Khanna Warburg Pincus
Mr. Nitin Sibal Warburg Pincus
Max Healthcare- Board of Directors
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Indian HealthcareIndian Healthcare Industry:• Indian healthcare industry – Currently estimated at about $33 Billion.
– Growing at 12% to 15% per annum.– Expected to be over $65 – 70 Billion by 2012, mainly driven by private sector investments.
• Over 1 Billion people, spread across different economic classes.
• Target Segment – More than 200 million upper and middle class.– Growing at over 4% per annum, with combined annual income of over $182 Billion.
Health expenditure in India by funding sources:
Majority of healthcare spending
in India is on self pay…Self-pay
59%
Government25%
Municipal Bodies
8%
Employers6%
Foreign Aid2%
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Advantage IndiaCore Competencies
“International Class Treatment at Domestic Costs”
Quality
Huge resource of highly trained doctors, nurses and paramedics
Comfort Level
Doctors of Indian origin recognized as amongst best in USA and UK
English Language
Value Proposition
Lower drug costs
Quality medical services at substantially lower costs
24x7 Physician, Nursing and Paramedic Availability
Hospital Information System
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Current Facilities
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Secondary Care Max Hospitals operational at:
Current Facilities
PANCHSHEEL (February 2001)(South Delhi)
•25 inpatient beds•1+1 OT•Full range diagnostics•PHP and OPD
PITAMPURA(February 2002)(North Delhi)
•100 inpatient beds•2+1 OT•Full range diagnostics•PHP and OPD
NOIDA(August 2002)(Suburb)
•40 inpatient beds•2+1 OT•Full range diagnostics•PHP and OPD
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MAX HEART AND VASCULAR INSTITUTE – SAKET [South Delhi]
• Brain Suite (first in Asia) and intraoperative MRI
• DSA Lab (for Neuro Sciences)
• Emergency Services
• High end Radiology facilities with 64 sliceCardiac CT.
MAX SUPER SPECIALTY HOSPITAL – SAKET [South Delhi]
Current Facilities
Operational since June 2006
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MAX HOSPITAL – PATPARGANJ [East Delhi]
125 Bed Hospital; only one of its kind in EastDelhi comprehensive with full range ofservices include
• Cardiac Catheterization Lab• Non-invasive Cardiology• Mother and Child• PHP• Dialysis• Blood Bank• Traumatology• All other Specialties
Operational since May 2005
Current Facilities
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OPTHALMOLOGY AND DENTAL CENTER – PANCHSHEEL [South Delhi]
• Lasik, OPD and Diagnostics• Dental – 3 chambers, OPG and Lab• Support Services and Offices (N & S)• Training / Conference Room
Current Facilities
Operational Since November 2005
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Healthy Occupancy and capacity utilization catching up fast at all thehealthcare facilities.
• Occupancy* for June’06 quarter…– Max Heart & Vascular Institute, Saket – 61% (Facility launched in Jan’05)– Max Super Specialty Hospital, Saket – 52% (Facility launched in June’06– Max Secondary Hospital, Patparganj – 76% (Facility launched in May’05)– Max Secondary Hospital, Pitampura – 72% (Post expansion in Nov’05)– Max Secondary Hospital, Noida – 68%
All Secondary care hospitals achieve EBITDA breakeven.
Over 800 leading Doctors• Number of Physicians on rolls – 325• Number of visiting consultants – 475
Over 400 leading Corporate Clients
Registered Patient base of over 350,000• Patient transactions per month crosses 88,000 mark in March’06
Medical/Clinical Collaboration with Singapore General Hospital in• Medical• Nursing• Paramedical
Current Status
*Occupancy has been calculated on operational beds
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Upcoming Facilities
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Max Hospital – Gurgaon• 100 bed Hospital with 2 OTs• Tower Specialties to include:
• Obstetrics & Gynaecology (incl. Infertility) and Paediatrics
• Ophthalmology (Anterior and Posterior)• Neuro Surgery• Nephrology and Urology• Plastic and Reconstructive Surgeries• General and Minimally Invasive surgeries• Launch by June 2007
Upcoming Facilities
In the second phase, Patparganj hospital to add another 350beds in the tertiary care segment on the adjoining land.
Dr Max Clinics at key locations for patient flow into the Maxhospitals
8 Hospitals by 2008 in and around NCR with a capacity of 1500 beds
NYL is one of the oldest mutual life insurance company in the US with over $200billion in assets under management
Max India contributes local market understanding and managing regulatoryenvironmentRobust business performance – Peak equity investment to be increased from$135 Mn to $222 Mn
Max New York Life Insurance [ MNYL]
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• Excellence• Honesty• Knowledge
MNYL road map to becoming India’s most admired Life Insurance Company
Key Public Messages
• A trusted life insurance specialist• Customer centric• Financially responsible and strong• A great place to work• An admired member of the community
VISION Become the most admired Life Insurance Company in India
MISSION
GOALS1 Billion $ in Premiums in 10th yearIRR–20% plus; Dominate MDRT in India; Profitable by 2008
KEY
OBJECTIVES
STRATEGIES
WHAT – Comprehensive suite of products, competitive pricing, extensive distribution, persistency, customer service excellence, profitable portfolios
HOW – Talented People, Professional & Productive Agents, Performance Metrics, Leverage Technology, Teamwork, Customer Centric, Innovative Distribution and Marketing
INITIATIVESWhat-When-Who-How-Cost linkage plans at Departmental and Individual levels
• Customer comes first• International quality standards• Do it right the first time• Fact based decisions• Bias for result oriented action• Financial strength & discipline• Direct and open communication• Respect Max & NYLI values & parentage• Fun at work
• Input• Output
• External• Internal
• Absolute• Ratios
• GMPR Ratings• TEC/TTR – Templates• Primary, Shared and
Contributory• Balanced scorecard• Core, Functional and
Leadership Competencies
• Part of top quartile new Life Insurance Companies
• National Player• Brand of FIRST choice• Employer of Choice• Principal of Choice for Agents
Key Differentiators• Financial Strength & Security• Quality of agents• Flexible Products• Service Excellence• Fair Terms of Business
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Mr. Analjit Singh Chairman
Mr. B Anantharaman Joint Managing Director, Max India Limited
Mr. N. C. Singhal
Mr. Rajesh Khanna Warburg Pincus
Mr. Joseph Gilmour
Mr. Fred Sievert
Mr. Anuroop Tony Singh
Mr. Ravi Akhoury
Mr. Gary R. Bennett Chief Executive Officer & Managing Director
Mr. Sunil Sharma Executive Director & Chief Operating Officer
MNYL – Board of Directors
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1) Full Suite of products with a focus on protectionLong Tenor products , Young customer base (Average Age – 30)Unit Link contributes over 65% of total sales for the Company for the periodApr’06 – June’06
2) Build best in class agencyProductivity higher than the competitionComprehensive in-house training (over 160 trainers) Over 400 hours of training
3) Wide geographic coverage104 offices across 76 locations
MNYL’S Strategy to build a Strong Life Insurance Business
34 new agency offices planned in 2006Multi-level marketing alliance with Amsure continues to perform well… working across 48 locations.
Ranks 3rd amongst private players in terms of number of policies sold.– Sold over 1 Mn policies since inception.
MNYL to focus on developing alternate distribution channels having wide reach and deep-rooted distribution network.
Partnership with 15 banks, current access covers 300 branches across 35 locations
Amongst top 50 global MDRT list in 2005 with over 200 members
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7) High embedded value / appraisal value creation
6) Strong customer trust and credibilityBalanced investment approach with a very long term view
– 69% of traditional portfolio consists of long tenor government paper – 23 % in AA+ and better corporate bonds
No asterisks in advertisingHonest illustration
– Controlled centrally – Sent along with policy
MNYL’S Strategy to build a Strong Life Insurance Business
4) Among the top private Indian life insurers with paid up capital base of $137 Mn.
Equity portfolio performance better than the benchmark.*
*Benchmark Index: CNX 500
First life insurer to be awarded the ISO 9000 : 2001 certification6 sigma program underwayBalanced scorecard approachGood Audit & Compliance orientation
5) Strong quality orientations to business
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Protection Oriented, Longer Tenor Life Insurance
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1DEFERRED ANNUITY
26MONEY BACK
17UNIT LINKED
6TERM
28WHOLE LIFE
PROPORTION OF POLICIES (%, by
number)PRODUCT TYPE
Tenure (Years)
Age of Insured(Years)
28 30
MNYL Average MNYL Average
19
26
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Actuarial Persistency of 75.8 % by Premium76% of portfolio is participating
As on July 31st , 2006
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3623
13
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ENDOWMENT 22 29
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Market Position – 2005-06 Insurance Sales (US $ Mn)
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Source: Insurance Regulatory & Development Authority, Adjusted to include only 10% of Single PremiumAll Others include: ING Vysya, Metlife, Reliance, Sahara, 1 US$ = Rupees 45
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Established Ourselves amongst the Leading Agency Sales Force
Adjusted Single Premium
New Business Apr’05 -Mar’06 (Agency)
(US$ Mn)Agents
Premium per Agent * ($) Cases per Agent *
331 60000 459 1.0
193 60000 268 0.8
103 28000 308 0.8
84 12510 543 1.5
59 11000 445 0.7
53 20000 220 0.4
44 11000 330 0.9
38 35000 91 0.4
31 6000 424 0.8
14 6500 185 0.9
14 8000 149 0.9
13 4000 267 0.9
* In terms of highest new business premium (Agency)
Neeman Medical International is a value added ClinicalResearch Service Organization. Neeman’s goal is toprovide highly competent GCP/ICH compliant Investigators inseveral geographies, who have access to patients anddedicated Clinical Research Coordinators. This allowsNeeman to accelerate patient enrollment and generate highquality data.
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Neeman Medical InternationalNeeman Medical International – A Contract Research Organization (CRO)
Service offerings to include• Site Management.• Project Management.• Data Management, includes Bio-Statistics and Report Writing.• Monitoring Services.• Clinical Trial Material Supply Chain Management Services.
Neeman Medical International spread across three geographies:IndiaNorth AmericaCosta Rica• Global Head Quarters in Raleigh, NC.• US operations have access to 86 sites (more than 130 PIs) in 6 States. Projected
expansion to 9 States with over 250 trained Principal Investigators (PIs).• Indian operations are spread across 12 major cities – Access to more than 600
GCP/ICH trained PIs, alliances with 4 major Tertiary Care hospitals.• Neeman Costa Rica acquired in 2000 has 13 years of clinical research experience
with major pharma/CROs – Access to more than 150 PIs.– 168 awarded trials – 6 successful FDA audits
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Neeman Medical InternationalBusiness Highlights
• 5 out of top 10 pharma companies are Neeman’s customers.
• Preferred provider relationship with Pharma majors.– Discussions underway with some more pharma majors for making Neeman Asia apreferred service provider.
• Alliances with CROs in Europe for business expansion.
• 5 hospital alliances with access to over 4 Mn patients.
• Network of over 1100 PIs across all geographies.
• Impressive operating standards – 3 Successful FDA audits in Indian operations,
first ever Indian sites to be inspected by the US FDA.
• Favorable Patent Regulations in India to catalyze exponential growth.
Max HealthStaff International Limited is an international healthcare staffingcompany, founded on world-class quality and service excellence.
It is committed to becoming India's leading healthcare staffing company,offering professionals to healthcare institutions in India and abroad.
Big Gap in Demand/Supply of Healthcare Resources in US, particularly nurses…projected to increase further.
• Current Shortage Nurses: 150,000• Increasing every year – Expected to beover 400,000 by 2008 and 850,000 by 2020.
• Shortage of allied healthcare staffingresources such as therapists,pharmacists, radiographers etc. estimatedto be more than 360,000 by 2008.
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First of its kind large scale corporate business initiative in India forproviding end to end placement solutions. Has begun placement ofnursing staff, will soon expand into other allied healthcare resources.
Annuity based revenue model with cash inflows expected for periodsupto 36 months for each placed candidate.
Sourcing and Training Centers in Delhi, Chandigarh and Kerala.– Expanding soon to Chennai and Kolkatta in FY 07.
Customer Profile– Leading Healthcare staffing companies, including publicly listed companies in US.– Non-exclusive contracts with multiple customers.
Nurses already placed in the US – Established proof of concept.
Over 700 nurses in pipeline… growing rapidly.– Business model highly scalable.
Currently focusing on US, will expand to other geographies such asMiddle East, Australia, Ireland, Canada etc.
Max HealthStaff International
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Manufacturer / Supplier of Niche (high contribution) and High BarrierSpeciality polymer films.
Capture value by producing Value Added products.Long term relationship with Blue chip customers in FMCG sector.Pioneer in introduction of new products / technology in India.Has a footprint in select export markets.Industry CAGR of 20%.
Generates revenue of $30 Mn and PBT of $2Mn for FY 05-06.Revenue from BOPP business at $28 Mn, grows 7%.Revenue from MaxFoils at $2 Mn, grows 42%.
Installed capacity of 8,800 TPA to be tripled to 29,000 TPA by mid 2007.Further investment of $27 Mn for the capacity expansion.100% capacity utilization.
PBDIT to net sales at 14%.
Highest return on capital employed of $15 Mn – 18%, better thancompetitors.