Fortis HealthcareFortis HealthcareAnnual Investor Presentation Annual Investor Presentation –– FY2010FY2010

Agenda

2

� Highlights of the quarter

� Update on Acquisition and Integration

� Snapshot – Financial Performance

� Business Mix

� Hospital wise performance

� Update on projects

Highlights of the quarterHighlights of the quarter

� Acquired 23.90% stake in Parkway Holdings Ltd., Asia’s premier healthcare organization with 16 hospitals

and 37 Patient Assistance Centers and 3400 beds in March 2010, for a value of USD 685.3 million.

� 11 hospitals in the network recorded all time high revenues

� Oncology block at Fortis Hospital Noida was commissioned in January 2010

� Fortis Escorts Delhi received the prestigious “Joint Commission International” Certification

� Brand transition completed across newly acquired 10 Wockhardt hospitals. Rechristened as Fortis

Hospitals

� Projects at Kolkata (414 beds) and at Mulund (344 beds) kick started.

� 350 bedded Greenfield hospital at Shalimar Bagh completed. Commencement of operations at Shalimar

Bagh expected in ensuing quarter, consequent to regulatory approval

3

Operating HighlightsOperating Highlights

� Financial Information:

� Network Operating Revenues: Q4 – Rs. 406.0 Cr. (+89%); FY – Rs. 1,214.0 Cr. (+57%)

� Consolidated Operating Revenue: Q4 – Rs. 329.5 Cr. (+91%); FY – Rs. 937.8 Cr. (+49%)

� Net Profit for Q4 FY10 - Rs. 27.2 Cr. and Rs. 69.5 Cr for the fiscal year FY10

� 8th consecutive quarter of growth in revenues and net profits

� First full quarter of operations for newly acquired hospitals from Wockhardt – Revenue @ Rs. 93 Crore

� Fortis Escorts Delhi achieved highest ever revenues of Rs. 82 Cr. for the quarter and Rs. 282 Cr. for

the year

� Fortis Escorts Delhi (+36%), Noida (+24%), Malar (+94%), Faridabad (+24%), Vasant Kunj (+38%),

Jaipur (+67%) and La Femme (+31%) led the growth across the network

� Revenues from Cardiac, Ortho, Neuro, Renal Sciences, Oncology and Gastro enterology grew by

40%, 42%, 86%, 45%, 69% & 41% respectively

4

Highlight Highlight –– OthersOthers

Financing of Parkway Investment (Rs/Crore)

� On shore Short term debts raised 300

� Off shore short term debts 2,000

� Off shore long term debts 1,045

� TOTAL (Net Debt) 3,345

Capital Raising Activities :

� US $ 100 Mn, 5%- FCCB Issue completed on May 20th 2010, the bonds listed at Luxemburg Stock Exchange.

� The Company had issued notice for conversion of detachable warrants issued with Right Shares. The Notice period of

one month ends on June 19’ 2010. On 100% conversion basis, expect Rs 1387 Cr equity infusion

� Rs 380 Cr Preferential Issue to GIC (at Rs. 170 / share) is underway and expected to be completed by June 24’2010

� Funds will be used to repay short term debts. Net debt : Equity to a comfortable ~ 0.67: 1 range by end June’2010

Share in profit of Associates

� In principle call taken to establish a lead lag of one quarter for consolidation of Share in Profit in Parkway Holdings. Q4

results exclude any share in profit from this investment. Foreign exchange translation gains and incremental cost equate

each other

5

Agenda

6

� Highlights of the quarter

� Update on Acquisition and Integration

� Snapshot – Financial Performance

� Business Mix

� Hospital wise performance

� Update on projects

About ParkwayAbout Parkway

� Incorporated in 1974, Parkway is the leading healthcare provider in Singapore and

Malaysia

� Widespread presence across Asia - 16 hospitals and 37 Patient Assistance Centers with an

operating bed capacity of ~ 3,400 and another 1100 beds under various stages of projects.

� High end tertiary care with cutting edge technology in Neuro, Musculoskeletal, Transplant

and Cellular Therapy, Heart & Vascular and Oncology

� 3 major facilities coveted by International JCI accreditation

� Innovative healthcare delivery models – Medi-Rad Associates, Clinical Laboratory

Services, PPAC’s and Specialty Centres

� World class 380 bedded facility “Parkway Novena Hospital ” to commence operations in

2012

Strategic RationaleStrategic Rationale

� Expands presence across Asia pacific; Establishes Fortis as a serious player in the Global

healthcare delivery market

� Enhanced brand equity through integration of premium healthcare brands in Asia

� Established platform for expansion into large and lucrative markets of Asia, China, etc.

� Exploit potential for Medical value travel

� Access to cutting-edge technology in stem-cell therapy and organ transplantation

� Access to medical protocols and quality systems

� Increases ability to attract and retain human talent

� Synergies in the area of capital purchase, supply chain management and back end

services

� New business potential (clinical research, healthcare education etc.)

8

Agenda

9

� Highlights of the quarter

� Update on Acquisition and Integration

� Snapshot – Financial Performance

� Business Mix

� Hospital wise performance

� Update on projects

631.0

937.9

772.0

1,214.0

0

200

400

600

800

1,000

1,200

1,400

Consol Network

FY09 FY10

173.0

329.5

215.0

406.0

0

100

200

300

400

500

Consol Network

Q4 FY09 Q4 FY10

10

� Q4FY 10 – Consolidated

� Operating Revenue - Rs. 329.5 Cr ���� 91%

� Operating EBITDA - Rs. 47.0 Cr ���� 81%

� Net Profit - Rs. 27.2 Cr ���� 3.4x

� Q4FY10 – Network Revenue - Rs. 406.0 Cr. ���� 89%

� Organic Growth - 39%

� FY10 – Consolidated

� Operating Revenue - Rs. 937.9 Cr. ���� 49%

� Operating EBITDA - Rs. 140.5 Cr. ���� 64%

� Net Profit - Rs. 69.5 Cr. ���� 234%

� FY10 - Network Revenue - Rs.1,214.0 Cr. ���� 57%

� Organic Growth - 38%

Snapshot Snapshot –– Financial PerformanceFinancial Performance

Rs. in Cr.

Statutory FY09 FY10

Occupancy 67% 74%

ARPOB (Annualized - Rs. Lacs) 75 83

ALOS (Days) 4.2 4.1

+91%

+89%

Operating Revenues

+49%

+57%

Summary Summary –– Consolidated Profit and Loss Consolidated Profit and Loss –– Q4 FY10Q4 FY10

Particulars Q4 FY10(Rs. Cr.)

% Q4 FY09 (Rs. Cr.)

% Growth (%)

Operating Revenue 329.5 100.0% 172.8 100.0% 90.7%

Other Income # 34.7 10.5% 4.6 2.7% 654.2%

Total Income 364.3 177.4 105.4%

Direct Costs 90.8 27.6% 55.0 31.8% 65.1%

Employee Costs 62.3 18.9% 35.3 20.4% 76.5%

Other Costs 129.5 39.3% 56.6 32.7% 128.8%

EBITDA 81.7 24.8% 30.5 17.6% 168.0%

Finance Costs 32.3 9.8% 9.3 5.4% 245.4%

Depreciation & Amortization 23.0 7.0% 12.8 7.4% 79.5%

PAT 27.2 8.3% 4.8 2.8% 469.7%

EPS for the quarter (Rs.) 1.02 0.21

11

#Other income includes Foreign Currency translation gains, interest income and miscellaneous income

Summary Summary –– Consolidated Profit and Loss Consolidated Profit and Loss –– FY10FY10

12

Particulars FY10 (%) FY09 (%) Growth (%)

Operating Revenue 937.9 100.0% 630.7 100.0% 48.7%

Other Income # 50.1 5.3% 28.5 4.5% 75.7%

Total Income 988.1 659.2 49.9%

Direct Costs 262.7 28.0% 189.5 30.1% 38.6%

Employee Costs 195.0 20.8% 147.4 23.4% 32.3%

Other Costs 339.8 36.2% 208.1 33.0% 63.3%

EBITDA 190.6 20.3% 114.2 18.1% 66.9%

Finance Costs 57.3 6.1% 43.7 6.9% 31.2%

Depreciation & Amortization 59.9 6.4% 48.7 7.7% 23.0%

PAT 69.5 7.4% 20.8 3.3% 233.7%

EPS for the quarter 2.61 0.92

#Other income includes Foreign Currency translation gains, interest income and miscellaneous income

172.8

185.4190.5

232.5

329.5

27.2

21.7

13.0

7.6

6.2100.0

150.0

200.0

250.0

300.0

350.0

Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10

4.0

9.0

14.0

19.0

24.0

29.0

Operating Revenues PAT

Operating Revenue and PAT

13

Revenues 91%

PAT3.4x

*PAT above is excluding exceptional items our share of loss of Rs. 1.4 Cr in Malar hospital in Q4FY09

�Rs. in Cr.

8th consecutive quarter of growth in revenues and PAT

Agenda

14

� Highlights of the quarter

� Update on Acquisition and Integration

� Snapshot – Financial Performance

� Business Mix

� Hospital wise performance

� Update on projects

2144 2530

2872

4553

Knee Replacements THR & Others

5,456 6,924 6,011

8,214

15,206

20,851 2,802

3,662

CTVS & Pediatrics PTCA CAG Others

Dialysis

29,214

46,993

No. of Procedures No. of Procedures –– FY2010FY2010

15

+35%

Q4 FY 09 Q4 FY 10

+41%

Neuro

1,352

3,040 +125% +61%

Cardiac Ortho

*The data shown above excludes the numbers of hospitals under Parkway Holdings

Cardiac, 42%

Ortho, 8%

Neuro, 6%

Onco, 2%

Renal, 4% Gastro, 2%

MSH, 16%

OPD, 9%

Pulmo, 2%

Gynae, 3%

Others, 4%

Other, 21%

Specialty Mix Specialty Mix –– FY10 (Fortis Network*)FY10 (Fortis Network*)

16

Focus on key specialties Cardiac, Neuro, Ortho, Ren al & Onco to continue…*The data shown above excludes the numbers of hospitals under and Parkway Holdings

Agenda

17

� Highlights of the quarter

� Update on Acquisition and Integration

� Snapshot – Financial Performance

� Business Mix

� Hospital wise performance

� Update on projects

Hospital wise Revenue & EBITDA Hospital wise Revenue & EBITDA –– FY2010FY2010

18

208.1

282.1

157.4

171.9

95.6

118.4

72.0

99.6

59.4

74.0

32.2

64.4

38.2

63.7

41.2

50.1

20.9 27.2

108.5

0

30

60

90

120

150

180

210

240

270

300

Delhi Mohali Noida Vasant Kunj Faridabad Malar Jaipur Amritsar La Femme FHsL

FY09 FY10

14%

21%

9%

24% 24

%

24%

38%

20% 26

%

13% 24

%

16% 12

%

12% 16

%

67%

-7%

19%

28%

23%

11%

21%

36%

24%

100%

22%

31%

14%

Rs. in Crores

Hospital wise Revenue & EBITDA Hospital wise Revenue & EBITDA –– FHsLFHsL –– Q4Q4

19

19%

22%

BG Rd CG Rd Mulund Kolkata Kalyan Nagarbhavi Rajaji Nagar

32.5

13.5

33.3

8.3 2.1 1.7

1.6

Revenue (Lakhs)

19%

19%

Occupancy: 68%ARPOB: Rs. 78 lacs

Rs. in Crores

7%

14%

21%-10% -19% 1%

Agenda

20

� Highlights of the quarter

� Update on Acquisition and Integration

� Snapshot – Financial Performance

� Business Mix

� Hospital wise performance

� Update on projects

Upcoming Greenfield Hospitals in India Upcoming Greenfield Hospitals in India

No. Location No. of Beds Area & Land Ownership Date of c ommencement

1. Shalimar Bagh 350 7 Acres. Owned Q2 FY 11

2. Gurgaon 450 11 Acres, Owned Q4 FY11

3. Ludhiana – 2 75 60,000 sq ft. B. Lease Q4 FY 12

4. Kangra 100 37,000 sq. ft., B. Lease Q3 FY12

5. Peenya 120 B. Lease; ~70000 Sq ft Q3 FY12

6. Ludhiana – 1 200 1,55,000 sq. ft., B. Lease Q2 FY12

7. Kolkata 414 Owned: 294931 Sq ft Q3 FY11

8. Ahmadabad 200 1,55,000 sq. ft., B. Lease Q4 FY12

9. Gwalior 150 2.5 Acres, L. Lease Q2 FY13

Total 2,059

Thank You…Thank You…