Fortis Healthcare Ltd.Fortis Healthcare Ltd.

Investor PresentationInvestor Presentation

Q1 Q1 –– FY 2010FY 2010

Safe HarborSafe Harbor

Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as

“will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek

to”, “future”, “objective”, “goal”, “likely”, “project”, “should”, “potential”, “will pursue” and similar expressions or variations of such expressions may

constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual

results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to

successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment

and business income, cash flow projections, our exposure to market risks as well as other risks. Fortis does not undertake any obligation to update forward-

looking statements to reflect events or circumstances after the date thereof.

“Fortis Healthcare Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a rights issue of its equity shares

with warrants and to file a Draft Letter of Offer with SEBI.” This presentation is not and should not be construed as an offer for sale within the United States of

any rights, warrants, equity shares or any other security of Fortis Healthcare Limited or as a solicitation of an offer to buy any of such rights, warrants, equity

shares or other securities. Securities of Fortis Healthcare Limited, including any offering of its rights, warrants, equity shares or any other security, may not be

offered, sold, resold or otherwise transferred within the United States absent registration under U.S securities laws or unless exempt from registration under such

laws. The offering of the securities of Fortis Healthcare Limited described in this advertisement has not been and will not be registered under U.S securities laws,

and accordingly, any offer or sale of these securities may be made only in a transaction exempt from registration.

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AgendaAgenda

��Key achievementsKey achievements

��Performance highlightsPerformance highlights

��Q&AQ&A

��Facility wise updatesFacility wise updates

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��Key AchievementsKey Achievements

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Key AchievementsKey Achievements

� Net Profit for Q-1 at Rs. 7.6 Cr, grows 8 times over corresponding period last

year.

� Operating Revenue at Rs 185.4 Cr (+ 33%).

� Ten hospitals in the network recorded all time high revenues.

� Strengthened presence in Mumbai, added 280 bed capacity.

�O&M contract with S L Raheja Hospital, key functionaries on board.

� Escorts Delhi, Malar Hospital, Escorts Jaipur and Fortis Vasant Kunj recorded

>40% growth

� Revenue from Cardiac, Ortho and Neuro Sciences grew by 40%, 43% and

50% respectively

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Key AchievementsKey Achievements

� Joint replacement program in NCR performed exceedingly well. Performed first

of its kind wrist replacement in India.

� Expanded ICU beds capacity at Malar Hospital.

� Fortis Noida launched stroke clinic and strengthened Neuro sciences program.

� Diabetology program gets further fillip with Company gets ICMR approval to

carry out clinical trials on treatment of diabetic foot through stem cell therapy.

� Continued to focus on patient care and productivity

� Quality Focus: Pre-survey for NABH Accreditation at Faridabad hospital.

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PresencePresencePresencePresencePresencePresencePresencePresence

Fortis City Centre (FY2006)

Fortis Mohali (FY2001)

La Femme (FY2005)

Jessa Ram (FY2003)

Fortis Noida (FY2004)

Vasant Kunj (FY2006)

Kalyani HCC, Gurgaon (FY2006)Escorts-Delhi (FY2006)

Escorts, Amritsar (FY2006)

Escorts, Faridabad (FY2006)

Ravindera Cath Lab, Hisar(FY2006)

Sadbhavna Medical &

Heart Institute, Patiala (FY2006)

Kamayani SC, Agra (FY2006)

Saraswati Heart Care, Allahabad (FY2006)

ISIC SC, Vasant Kunj (FY2006)

Yashoda Hospital, Ghaziabad (FY2006)

Fortis Escorts Jaipur

(2FY006)

Fortis Modi Hospital,

Kota (FY2006)

HHPL (Mumbai) (FY2007)

Escorts-Raipur HCC (FY2006)

Fortis Malar (Chennai) (FY2008)

Fortis, Bangalore (FY2009)

International Projects

• Escorts-Amiri Diagnostic

Heart Center, Afghanistan (FY2006)

• Mauritius (FY2009)

Arneja Hospital SC,

Nagpur(FY2006)

Birla Institute MRC, Gwalior (FY2006)

Goyal Hospital SC,

Jodhpur (FY2006)

Hospitals

Heart Command Centres

SL Raheja (Mumbai) (FY2010)No. Capacity

Greenfield 4 1,120

Brownfield 6 1,147

O&M 6 995

HCC’s/SC’s 12 72

Total 28 3,334

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��Performance HighlightsPerformance Highlights

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Consolidated: FHL and Subsidiaries

Network: FHL, Subsidiaries, Associates and O&M Hospitals

�Q1 FY 10 - Consolidated

� Operating Revenue - Rs. 185 Cr ���� 33%

� EBITDA - Rs. 31 Cr ���� 34%

� Net Profit - Rs. 7.6 Cr ���� 7x

Snapshot Snapshot –– Executive SummaryExecutive Summary

Rs. in Crores

+27%

+45%

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� Network Income - Rs. 243 Cr ���� 45%

Q1 FY 09 Q1 FY 10

Occupancy 62% 69%

ALoS 4.02 3.62

ARPOB Rs. 6.9 Mn Rs. 8.0 Mn

EBITDA & PAT (Consolidated)EBITDA & PAT (Consolidated)

Rs. in Crores

+34%

+7x

Q1 FY 09 Q1 FY 10

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Operating EBITDA as a percentage of Operating income grows 490 bps over corresponding period last year

Operating Revenue and PAT Growth Operating Revenue and PAT Growth –– QQ--oo--QQ

Rs. in Crores

Consecutive positive returns

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PAT above is excluding exceptional items of gain of Rs. 6. 4Cr in Q2 and our share of loss of Rs. 1.4 Cr in Malar hospital in Q 4

Summary Summary –– Consolidated Profit and Loss Consolidated Profit and Loss –– Q1FY10Q1FY10

Particulars Particulars Particulars Particulars Q1FY10Q1FY10Q1FY10Q1FY10

(Rs. (Rs. (Rs. (Rs. CroresCroresCroresCrores) ) ) ) % % % %

Q1FY09 Q1FY09 Q1FY09 Q1FY09 (Rs. Crores(Rs. Crores(Rs. Crores(Rs. Crores) ) ) )

% % % % QQQQ----oooo----Q Q Q Q

GrowthGrowthGrowthGrowth

Operating Revenue 185.4 100% 139.4 100% 33%

Other Income 3.1 2% 9.0 6% -66%

Total Income 188.5 148.4

Direct Costs 54.3 29% 41.9 30% 30%

Employee Costs 42.5 23% 36.0 26% 18%Employee Costs 42.5 23% 36.0 26% 18%

Other Costs 60.6 33% 47.3 34% 28%

EBITDA 31.2 17% 23.2 17% 35%

Finance Costs 10.4 6% 10.9 8% -5%

Depreciation & Amortization 11.4 6% 11.7 8% -3%

PAT 7.6 4% 0.9 1% 7x

EPS for the quarter 0.33 0.04

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Other income includes interest income, foreign exchange fluctuations and other miscellaneous income

��Hospital PerformancesHospital Performances

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Escorts Delhi

•Over 4,000 cardiac procedures performed

•Revenue grows 54% over corresponding quarter to Rs.

64.3 Crores41.6

50.3

54.5

61.7 64.3

15%

20%

25%

40.0

50.0

60.0

70.0

Escorts DelhiEscorts Delhi

Rs. in Crores

+54%

64.3 Crores

•EBITDA grows 6 times, to Rs 13.3 Cr.

•Revenue from International Patients > Rs. 5.5 Crores

•ALoS @ 5 Days, Occupancy @ 80% and ARPOB @

Rs. 1.10 Crores

•Operating EBITDA @ 21% “Highest Ever”

•Sequential growth in revenues for past eight quarters

0%

5%

10%

15%

-

10.0

20.0

30.0

40.0

Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10

Revenue

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10.0

20.0

30.0

40.0

50.0 36.4 41.4

+14%Rs. in Crores

Fortis Mohali and Fortis Mohali and NoidaNoida hospitalhospital

Fortis Mohali

•Revenue growth @ 14% Q on Q to Rs. 41.40 Crores – highest ever

non-government business of ~ Rs. 35 Crores

•Ortho (+33%), MSH (+58%)

•Operating EBITDA @ 24%

•License obtained for commencing renal transplants

•Dr. Pankaj Garg, general surgeon received the prestigious 2009

SAGES Travelling Fellowship cum International Young Investigator 0.0

MohaliQ1FY09 Q1FY10

0.0

10.0

20.0

30.0

40.0

50.0

Noida

24.0 27.5

Q1FY09 Q1FY10

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SAGES Travelling Fellowship cum International Young Investigator

Award.

•Average Occupancy was 69%

+15%

Fortis Noida

• Reports Highest Operating Revenue in a quarter – crosses Rs.

10 Crores per month revenue mark in June 09

• Focus on cash business, +2% on trailing quarter to 60%

• Operating EBITDA @ 23%

• Launches Stroke Clinic, adds equipments for Neuro Program

• Average Occupancy at 64%

Rs. in Crores

10.0

20.0

30.0

16.7

24.2 Fortis Vasant Kunj

• Revenue grows @ 45% Q on Q and 27% over trailing

quarter

• 280 joint replacements performed.

• EBITDA @ 28%

• Dr. Ashok Kumar, President – Indian Rheumatology

Association starts a new medical program

• Renal transplant program gathers further momentum

+45%

Fortis Vasant Fortis Vasant KunjKunj and Escorts Faridabad hospitaland Escorts Faridabad hospital

Rs. in Crores

0.0

Vasant KunjQ1FY09 Q1FY10

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• Renal transplant program gathers further momentum

• Average Occupancy at 75% for the first time

Escorts Faridabad

• Revenue grew @ 33% Q on Q and 15% over trailing quarter

• Cardiac program performed well , +44% Q on Q

• New Emergency and Dialysis wing inaugurated

• Start up costs of new medical programs, EBITDA drops to

10%

• Hospital was re-certified for being ISO – 9001:2000 compliant

• Survey for NABH conducted at the hospital

• Occupancy @ 72% for the year0.0

10.0

20.0

30.0

Escorts FBD

13.7

18.1

Q1FY09 Q1FY10

+33%

Rs. in Crores

Malar and Escorts Jaipur hospitalMalar and Escorts Jaipur hospital

Rs. in Crores

+164%

Fortis Malar Hospital, Chennai

• Revenue grew @ 164% Q on Q and 26% over the trailing quarter.

• Completes 6 Consecutive quarters of growth

• Inaugurated a state-of-the-art 20 bedded ICU for CTVS procedures

• Cardiac Program contributed Rs. 4.0 Crores this quarter and other

specialties also grew significantly

• EBITDA @ 15% for the quarter

• Work on Master for complete revamp of hospital plan in progress

• Average Occupancy at 67%

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+69%

• Average Occupancy at 67%

Fortis Escorts Hospital, Jaipur

• Revenue grew @ 69% Q on Q and 32% on trailing quarter

• Kick starts the Neuro-surgery medical program .

• Adds to Medical talent, Renowned interventional cardiologist, Dr Ajay Jain joins

• Focus on TPA empanelment, credit business +83%

• Received approval to begin a diploma course in critical care medicine as well as

approvals from IGNOU to commence the PGDHHM programme and courses in

clinical cardiology

• Sets new benchmark by achieving 20% EBITDA margins in 2nd year of

operations

• Average occupancy at 53%

Rs. in Crores

Escorts Amritsar and Fortis La Femme hospitalEscorts Amritsar and Fortis La Femme hospital

+33%

Fortis Escorts Hospital, Amritsar

• Revenue grew @ 33% Q on Q and 3% over trailing quarter.

• Orthopaedic, Neuro-sciences and Cardiac sciences grew by

44%, 54% and 26% respectively

• EBITDA @ 30% for the quarter – highest in the network

• Launched medical oncology programme during the quarter with

the start of oncology OPD during April 09

Rs. in Crores

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• Occupancy rises to 74% for the quarter

Fortis La Femme, Delhi

• Revenue grew @ 41% Q on Q with 257 babies born

• 115 NICU cases dealt during the quarter

• EBITDA @ 22% for the quarter

• The hospital launched medical oncology, ophthalmology and

otolaryngology and Urology for women.

• A speciality urinary Incontinence Clinic was also launched in

June’ 09

• Occupancy rises to 59% for the quarter

+41%

Rs. in Crores

Impact of Budget on Fortis HealthcareImpact of Budget on Fortis Healthcare

� FBT Abolished –

� Resultant saving - Rs. 1.4 Crore p.a, going forward

� MAT rates revised – Increased to 15% from 10% earlier.

� Impact – Rs. 80 Lacs, 2 companies impacted in the network

� Import duty on specified heart devices brought down to 5% (10% earlier) and on specified medical

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equipment cut from 7.5% to 5%

�Lower treatment costs to patients. No impact on FHL’s P&L

�Plan expenditure on education and health programs increased by 18-20%

�Health spend currently is ~ 5.3% of GDP, to boost spending on Primary and Secondary care.

� Introduction of “Health Insurance business” as a separate category for standalone health insurance

companies

� Expected to increase further penetration of insurance to private healthcare for the common man

Thank You…Thank You…

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