Advanced DiagnosticsAdvanced Pathology

Vision Beyond

Advanced DiagnosticsAdvanced Pathology

Vision BeyondDr Vinay GoelCEO

2

ABOUT US

Lifecare Diagnostic & Research Centre Pvt. Ltd.

Started in July 1995, we have completed more than 17 successful years

This is the first multi facility diagnostic centre in Andheri West, with complete imaging & pathologyservices under one roof.

Year-on-year we have achieved many mile stones; To mention few – We have added 4 diagnostic Centre,Huge Referral Lab, more than 100 collection Centre, many HLM and JV etc

The staff recruited is fully qualified & trained and now this is are USP. All our diagnostic cntre are backedwith Specialists/MD doctors.

3

The staff recruited is fully qualified & trained and now this is are USP. All our diagnostic cntre are backedwith Specialists/MD doctors.

We have zero tolerance on quality-compromise, we believe in investing in technology to leverage on thebasic need for quality healthcare.

2000

1997 2003 2009

Launch ofLifecare Center

Launch ofWebsite

Introduction of MobileMedi -check Van

Opened a branch at Juhuwith all facilities likePathology, X-Ray,Sonography, 2 D Echo,Diet & Nutrition

First Sub-center atYari Road, Mumbai

A 24-hrs Day & Nightpathology centre wasopened with latest inpathology equipment.

Sub centre was openedat Malad (w), withpathology collections& X.ray, Sonography

1995 2000 2004 2010 2011 Franchising2012

Central Lab

Future expansion Plans

Diagnostic Centers Boost•Spurred by success of our diagnostic (imaging) division started way back in 1995, Lifecare has scripted plans of starting 15 to 20 diagnosticcenters across India.

•To begin with, it is augmenting its position in the island city, where it has four diagnostic centers located at Malad West (one), Juhu (one),and Andheri (two).

•The group has chalked out plans to commence five more diagnostic centers, zeroing in on locations at Nasik, Pune, Delhi, Punjab, Rajasthan.All the five centers would be rolled out by mid 2013.

•We are creating a different sub-brand for diagnostics, under the parent brand – Advanced Diagnostics

Bolstering Pathology Business•The group’s pathology section, which is also getting a new sub-brand Lifecare Advance pathology, is slated for expansion.•In the long run, the group plans to pitch itself as a pan India pathology chain with multiple hubs and collection centers. “To begin with, weare setting up base in Western and Northern region.

•The group has come up with a separate referral laboratory at Andheri (W) in Mumbai. The Central Lab, 5000 sqft state-of-the-art Infra.

Hospital Lab Management

4

Hospital Lab Management•Besides stand alone path labs, it is also keen on taking on managing more path labs of hospitals.•As of now, five hospitals have tied-up with Lifecare Medical Centre for management of their path labs. “Our immediate target is to have tie-ups with 12 to 15 hospitals,”

•The group is also scaling up its number of collection centers from 100 to around 250 by end of 2013.

Strengthening Preventive Healthcare•It is also strengthening its nutrition and fitness division or preventive healthcare segment, one of its key differentiators from its competitors.“Our ‘Fit Life’ is more than a gym.

•In ‘Fit Life’, so far we have been offering weight management and diet counseling. Now, besides advising customers on management of theirnutrition, diet and exercise plan, we would also offer them medical check-ups. Having a medical check-up is extremely crucial to understandwhat kind of obesity a customer has.

•Base on the medical report, nutrition planning and exercise would be offered. The customer is free to go to any gym for exercise, based onour guidelines.

Widening Test Menu•Recently we have added molecular genetic screening tests to our ever expanding test menu.•We have also added high end Septicemia testing, and 4th generation vitamins testing

5

INDUSTRY & KEY CONSUMERTRENDS

Healthcare Industry to be INR 7,945 billion by 2015…

Comparison of Healthcare Spend Healthcare spending as a % of GDP

The Indian Healthcare Industry is currently estimated at INR 1,645 billion. The industry is expected to

grow to INR 7,945 billion by 2015, growing at a CAGR of 30%

Healthcare spending in India is <5% of the GDP as compare to Global average of 9.7%

Growing demand for improved public health infrastructure due to the country‘s high population and

increasing disease profile

With an increasing incidence of life style diseases (approx. 33 percent of the total pie) and a growing

geriatric and pediatric population, there is an emphasis on the need for specialty care

6

Comparison of Healthcare Spend Healthcare spending as a % of GDP

Consumer and their healthcare needs..a clear shift from curebased treatment to Preventive care and holistic well being

Midnight’s Children(born before 1955)

Transition's Children(1955-85)

Liberalization’sChildren

(born after 1986)

India’s Three Major Consumer Generations

● More than ever, people seeking healthcare look for trustworthy information to make informeddecisions about the care they receive. Quality, service, convenience and cost are majordeterminants in the decision- making process.

● Meeting consumers’ evolving needs and preferences would require shift to consumer-centricbusiness models and customer focused initiatives.

● 24% of current healthcare consist of the population born after 1986 focus on prevention andwellness

7

Midnight’s Children(born before 1955)

Maintenance

Accessible,Affordable medical

care

Transition's Children(1955-85)

Wellbeing

Holistic wellnessmanagement

Liberalization’sChildren

(born after 1986)

ProactivePrevention &

Fitness

Wellnessmanagement with

internationaldelivery standards

Focus

HealthcareNeed

Healthcare delivery is going through a change, new model isfocused at taking healthcare closer to patient…..

Traditionally healthcare has been delivered in a hospital or clinic setting worldwide. This system lack transparencyand is difficult to access. Overall, the existing systems are providing sub-optimal levels of experience and returns forconsumers, payers and suppliers.

Hospitals will continue to be the mainstay of treatment for episodic acute care, we see a fundamental shift in thenature, mode and means of delivery of care.

Preventive and chronic care are best treated in an ambulatory environment close to the place where the patientresides. This transformation is already evident and shall continue to grow. There will be shift of less intensiveinpatient care to home care.

The healthcare delivery is moving closer to the patientMove from curativewellness and preventivecare opens up a lot moreopportunities fordiagnostics.

Emerging areas healthcarelike mobile & homecareand personalized healthcareinvolves extensive use ofdiagnostics , thus changinglandscape of the healthcarepresent great potential fordiagnostics labs

8

Curative

Wellness/Preventive

Medicine forALL

PersonalizedHealthcareTele-Medicine

Mobile andHome care

AmbulatorySurgeryCenters

HospitalsSpecialty Centers

Move from curativewellness and preventivecare opens up a lot moreopportunities fordiagnostics.

Emerging areas healthcarelike mobile & homecareand personalized healthcareinvolves extensive use ofdiagnostics , thus changinglandscape of the healthcarepresent great potential fordiagnostics labs

Currently Diagnostics business is INR 59 billion, expected togrow at 28% and would be INR 255 billion by 2015

Overview

• Indian healthcare industry was valued at INR 1,645 billion in 2009• Estimates to be INR 7,945 billion industry by 2015, at a compounded annual growth rate (CAGR‖) of 30%

• At INR 59 billion, diagnostic services account for approximately 3.60% of the healthcare market• Diagnostic services sector is expected to grow to INR 255 billion by the end of 2015 at a CAGR of 28%

• Diagnostics market has become one of the important growth industries as 60-70% of treatment decisions arenow based on test results

• Diagnostics services is divided primarily in two most important segment• Pathology Services• Imaging Services (Including Radiology)

9

• Indian healthcare industry was valued at INR 1,645 billion in 2009• Estimates to be INR 7,945 billion industry by 2015, at a compounded annual growth rate (CAGR‖) of 30%

• At INR 59 billion, diagnostic services account for approximately 3.60% of the healthcare market• Diagnostic services sector is expected to grow to INR 255 billion by the end of 2015 at a CAGR of 28%

• Diagnostics market has become one of the important growth industries as 60-70% of treatment decisions arenow based on test results

• Diagnostics services is divided primarily in two most important segment• Pathology Services• Imaging Services (Including Radiology)

Healthcare Services60%

Medical equipment andSupplies

8%

Pharmaceutical32%

Healthcare Industry Break-up

Healthcare Delivery72%

Diagnostics6%

Pharmacy22%

Thus, we see a clear opportunities to set up a chain ofdiagnostics centre offering pathology and imaging services…

Unmet Diagnostics Needs

Diagnostics business to be INR 255 billion by 2015Opportunities toset up a chain of

diagnosticCentres

Average patient spend on the additional diagnostic need (outsidethe hospitals) is Rs 469, 5% of the hospitalization expenditure

Paradigm shift to Preventive care and holistic well being

24% of current healthcare consist of the population born after 1986focus on prevention and wellness.

10

Diagnostics business to be INR 255 billion by 2015

Hospital Lab Management A INR 36 billion opportunity

Opportunities toset up a chain of

diagnosticCentres

60-70% of treatment decisions are now based on test results andmedical imaging

Emerging Healthcare delivery modelNew delivery model is focused at making healthcare more closer to patient.Wellness & preventive care, tele-medicine and mobile care will drive thehealthcare delivery going forward

If diagnostics lab players are able to penetrate 15% (Currently 1%) of thismarket by 2015, this segment would be worth INR 36 billion in revenues.

11

FRANCHISING ASSESSMENT &BUSINESS MODELS

Business Format – Diagnostic Business

Small Medium Large Large +

Collection of sample

Consulting services

Pathology

Radiology

Mammography

Ophthal

BMD

Sonography

Large and Large+Centres will havemulti specialtyconsultations

12

Sonography

Cardiac Imaging

Dental

ENT

Fitness

CT Scan & MRI

Investment Plan (INR Mn) 2.0-2.5 3.0-3.5 8.0-8.5 14.0-15.0

Annual revenue (INR Mn) 4.5 -5.0 8.0-9.0 12.0-14.0 18.0-20.0

Expected RoI (Y1) 70-80% 70-80% 65%-70% 45%-50%

Need for Franchising in this business

• An arrangement whereby a trademark owner allows the use of his trademark along with astandardized manner of presenting the goods & services under the mark,

• In exchange, the franchisee provides capital and also pays certain royalty for the use of the mark.

What isFranchising

• Limited capacity: One center facility will have limited manpower & organizing to serve a largercustomer base; However with multiple centers in locality one can target new customers

• Reach: customers in remote areas may need your service but are inaccessible now

Issue with onecenter format

• The solution in such cases is to have “branch” center - either company owned or FranchiseThe Solution

13

• This appears to be the cheapest and easiest manner of doing so, while also ensuring that thebranch continues to provide the same quality of service as is associated with the name of theparent company.

WhyFranchising

• Franchise agreement defines exactly how the franchisor expects the business to be run, in terms ofits curriculum, design, set up & functioning of the administration, lesson plans, day-to-day operationsof the business, the manner of conducting research & development policies, so as to keep up theirreputation for which they are well-known.

Terms &Conditions

• The continuing control by the franchisor over the way a franchisee operates is the distinguishingfeature of a franchising agreement from a licensing agreement.

FranchisorControl

What does a Franchisee look for in a business ?

Key trends in Industry in past, current shift & likely future scenarioLevel of Competition – existing & emerging sourcesConsumer behavior towards the services on offer – need based / demand based businessLikely industry size in next 10-15 yrs periodPathology services market is estimated at INR 180 billion in 2015, growing at a CAGR of 28%.Imaging market is growing as there is increasing reliance on medical imaging both fordiagnostics as well as for therapeutics, expected to be INR 74 billion segment by 2015Currently just 1% of the labs inside the hospitals are managed by the diagnostics market.Given the potential of this market, if diagnostics lab players are able to penetrate 15% ofthis market by 2015, this segment would be worth INR 36 billion in revenues

Industry

Position of Franchisor in the marketGrowth plans as envisioned by the FranchisorSupport to be offered by Franchisor – Marketing, Operational, FinancialLifecare is an ultramodern diagnostic center with comprehensive facilities for laboratory &Imaging investigations under one roof.Strong legacy of success over 15 years

14

Key trends in Industry in past, current shift & likely future scenarioLevel of Competition – existing & emerging sourcesConsumer behavior towards the services on offer – need based / demand based businessLikely industry size in next 10-15 yrs periodPathology services market is estimated at INR 180 billion in 2015, growing at a CAGR of 28%.Imaging market is growing as there is increasing reliance on medical imaging both fordiagnostics as well as for therapeutics, expected to be INR 74 billion segment by 2015Currently just 1% of the labs inside the hospitals are managed by the diagnostics market.Given the potential of this market, if diagnostics lab players are able to penetrate 15% ofthis market by 2015, this segment would be worth INR 36 billion in revenues

Brand

FinancialGains

Position of Franchisor in the marketGrowth plans as envisioned by the FranchisorSupport to be offered by Franchisor – Marketing, Operational, FinancialLifecare is an ultramodern diagnostic center with comprehensive facilities for laboratory &Imaging investigations under one roof.Strong legacy of success over 15 years

Initial investments & recurring expensesImmediate returns from the businessLong term returns should justify cost of capital & cost of property (own property)The business would demand high investments for large diagnostics centers. While capitalrequirement for small diagnostics centers and collection points is lowRoI will depend largely on location & franchisee’s involvement in the business, we feel 2-3years period should be good for large center

Support from company

Lifecare would provide inputs in centre’s design and operations. The project would be implementedunder the guidance of Lifecare’s Project Management Team.

• Site selection guidelines• Provision of Architecture/Interior design guidelines• Provision of the design for signage• Site visits by the Franchisor’s team to monitor and co-ordinate progress of the project work

Lifecare would advise on the equipment to be installed at the centre and also help in the procurementat reasonable prices.

• Equipment selection• Guidelines to ensure smooth installation of the Medical equipment• Guidelines in finalizing a maintenance contract for the equipments

SetupSupport

Equipments

15

• Equipment selection• Guidelines to ensure smooth installation of the Medical equipment• Guidelines in finalizing a maintenance contract for the equipments

Lifecare would provide marketing & sales support to promote the services to local medical fraternityand hospitals

• PR at national level• Clinic launch guidelines• Advertising templates• Guidelines on direct mailer campaigns• Policies on inaugural promotion schemes• Marketing Manual covering an Institutional Marketing Plan, corporate proposals template, details

of the products,

Lifecare would provides the Operations Manual which contains mandatory and suggestedspecifications, standards, operating procedures and rules for running the business.

Marketingand SalesSupport

OperationalSupport

Summary: Why partner with us

OPPORTUNISTIC MARKET:Company offers services in pathology, imaging and preventive care

ESTABLISHED NAME:Credible business image with in business presence for 17 years

EXPERIENCED AND SKILLED:Strong proof of concept with four diagnostics centers

STRONG MARKET PRESENCE:Over 100 collection centers and doing HLM in five hospitals

16

STRONG MARKET PRESENCE:Over 100 collection centers and doing HLM in five hospitals

ADVANCED AND LATEST TECHNOLOGY:Hi-tech and Advanced pathology lab for more reliability

SUSTAINABLE APPROACH:Faster reporting penetration with advanced testing process

QUICK AND ACCURATE:Excellent adaptability of pathology & diagnostics centers

ROBUST IT INFRASTRUCTURE ANDNETWORKED LOGISTICS

OPEN HOUSE

Dr. Vinay Goel CEO

+91 9820057625

drvinay.g@lifecareindia.com,

adm@lifecareindia.com

17

Dr. Vinay Goel CEO

+91 9820057625

drvinay.g@lifecareindia.com,

adm@lifecareindia.comLifecare Medical Centre

(A Div of : Life Care Diagnostic & Research Center Pvt. Ltd.)

1st Floor, Sunshine, Opp. Shastri Nagar,

Lokhandwala Complex,Andheri (West),

Mumbai 40005,India

Thank You !!!!

18