Fortis Healthcare Ltd.

Interim Results – FY2008 – 09

Corporate Presentation
Quarter 3 & 9 Months
Safe 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.

2
Agenda

Recent Developments

Result Highlights

Hospital Performances

Legal Update
Recent Developments

4
Recent Developments
Board approval for raising money by way of Rights Issue of Rs. 1000 Cr.
 Funding for on going green field projects

 Future expansions

Vashi gets Operating license from NMMC. Commences IPD services

Acquires majority stake in Clinique Darné, Mauritius along with financial partner CIEL
Acquires controlling stake in RM hospital, Bangalore
Signs up O&M Contract with RNMCS, Kota, Rajasthan
Civil Construction for Oncology Block at NOIDA started
MOU Signed with International Oncology Services Pvt. Ltd.
Cardiac Program launched at Malar Hospital in December
Awarded PPP project with Delhi Government for Ambulance services in NCT

5
Foray to International Arena - Mauritius

 Strategically located in the Indian Ocean, between Asia,

Africa and Australia and attracts 0.9 million high end

tourists p.a. growing @ 7.8%.

 Fulfills the Criteria of “Low Risk” exposure, Low

Investments and easier cultural fit

 Potential Medical Value Tourism & Medical Tourism

 Friendly Tax Structure

 Business Friendly Environment:

6
About Fortis Clinique Darne
 The hospital was revamped and rebuilt in the year 1997
 Located in the up-market locality of Floreal and surrounded
by residential localities.
 Spread over 6 Acres of Land with Built up area - 115,000 sq
ft, with potential to expand
 Installed bed capacity of 120, Catering to the high end
customers of Mauritius and is also called as the ‘Hospital for
the Whites’.
 Only Cardiac care hospital in the private sector in
Mauritius. Other Medical specialties include Neuro Sciences,
Nephrology Oby & Gynae, Oncology, Internal Medicine,
Plastic & Cosmetic Surgery.
 It has the 1.5 (Tesla) MRI, 64 slice CT and a CT.

7
Fortis Clinique Darne
 Clinique Darne
Fortis Clinique Darne
Fortis Clinique Darne
 Clinique Darne
Fortis Clinique Darne
Fortis Clinique Darne
 Fortis Hospital, Seshadripuram
 Second hospital for Fortis in Southern India and first in
Bangalore
 Operational since in April 2007
 Land Area
 Main Hospital ~ 8,000 Sq Ft
 Additional Land available ~ 6,500 Sq Ft

 No of Beds 100, expandable to 200

 Pilot to gauge the Bangalore Market
 Total Stake - 67.23% as on date.
 Capex plans for expansions being firmed up

 Current Specialties: Nephrology, Urology & Critical Care.

 Specialties proposed: Cardiac Sciences, Renal Sciences &

Neuro Sciences
Fortis Modi Hospital, Kota

 Second Hospital in western India

 Operational since November 2007
 Specialties : Cardiology, Endocrinology, Nephrology,
Neurology, Orthopedics & Trauma, Respiratory Medicine,
Urology, etc.
 Land Area ~ 6,120 Sq Ft
 Bed Capacity - 200 with Operational Beds – 100
 Serve the catchments in Vadodara, Jodhpur, Indore,
Bhopal & Gwalior
 O&M arrangement with RNMCS
Year O&M Fees Min Guarantee Fees
1st 4% Nil
2nd 4% Rs. 20 Lacs/annum
3rd & 4th 5% Rs. 20 Lacs/annum
5th & thereafter 6% Rs. 20 Lacs/annum

12
 Escorts-Amiri Diagnostic
Heart Center, Afghanistan (2006)

Kamayani SC, Agra (2006)

Sadbhavna Medical & Saraswati Heart Care, Allahabad (2006)
Heart Institute, Patiala (2006) Fortis Noida (2004)
Fortis City Centre (2006) Jessa Ram (2003)
La Femme (2005)
Escorts-Amritsar (2006)
Vasant Kunj (2006)
Fortis Mohali (2001)
Kalyani HCC, Gurgaon (2006) Yashoda Hospital, Ghaziabad (2006)
Escorts-Faridabad (2006) ISIC SC, Vasant Kunj (2006)
Escorts-Delhi (2006)
Ravindera Cath Lab, Hisar

Fortis Jaipur (2008)

Goyal Hospital SC,
Jodhpur (2006)

Fortis Modi Hospital, Birla Institute MRC, Gwalior (2006)

Kota (2009)
Escorts-Raipur HCC (2006)

HHPL (Mumbai) (2007) No. Capacity

Arneja Hospital SC,
Greenfield 3 970
Nagpur(2006)
Brownfield 9 1,419
O&M 4 600
HCC’s/SC’s 11 107
Total 26 3,096
Fortis, Bangalore (2009)
Fortis Malar (Chennai) 2008

Fortis Clinique Darné, Mauritius (2009)

Result Highlights

Consolidated: FHL and Subsidiaries

Network: FHL, Subsidiaries,

Associates and O&M Hospitals

14
Snapshot – Executive Summary

Consolidated Revenue Growth

 @ 33% for Quarter on Quarter
 @ 22% for 9 Months Y-o-Y

 EBIDTA grows at 77% over Y-o-Y and

stands at Rs. 83.7 Crs.

 Net Profit @ Rs. 5.1 Crs. for Q3 – FY09

grows 39% over the trailing quarter*

 Operating revenues for Network hospitals

grows to Rs. 542 Crs. over 9 Months Y-o-Y @
24%
*Excluding exceptional items 15
Snapshot – Executive Summary

Key Performance highlights:

 Blood Banks at Delhi (Escorts) and NOIDA get
NABH accreditations.
 Malar - Renowned Dr. K R Bala Subramanian joins
in. Revenues in December - Rs. 2.75 Cr (Highest). 3 rd
quarter of sequential growth
 Delhi (Escorts) crosses Rs. 20 Cr/month Revenue
mark.
 Noida – Eminent Orthopedic surgeon, Dr. P.S. Maini
joins, along with his team. Orthopedic department
further strengthens
 Mohali – Touched new high in number of
Angioplasties and Cardiac Surgeries
 La Femme – Launch of In-Vitro Fertilization (IVF)
program. Maximum Deliveries – 117 and highest
ARPOB for any Fortis Group Hospital (Rs. 1.18 Cr
on an annualized basis).
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Operating Revenues – Across Fortis Hospitals

Rs. in Crores
600.0 500.0
541.9 +22% 458.0
+24%
550.0
450.0
500.0
436.5 400.0 374.3
450.0

400.0 350.0

350.0 300.0

300.0
250.0
250.0
+35% 190.8
200.0 +33% 161.1
200.0
141.6
150.0 121.6
150.0

100.0 100.0
Q3 9M Q3 9M

FY08 FHL Network FY09 FY08 FHL Statutory FY09

17
Summary – Consolidated Profit and Loss – Y-o-Y
Rs. in Crores

Quarter – III Nine Months Change [+/-]

FY09 FY08 FY09 FY08 Quarter - III Nine Months

Total Income # 167 138 482 401 +21% +20%

Direct Costs 46 40 135 119 +15% +13%

Employee Costs 39 34 112 102 +17% +10%

Other Costs 51 43 151 133 +18% +14%

EBIDTA 31 21 84 47 +47% +77%

Interest Costs 11 15 34 47 -27% -26%

Dep. & Amot 12 14 36 34 -12% +5%

PAT* 5 (7) 16 (46) _ _

# Includes non-operating Income

* PAT is after exceptional items (Rs. 6.40 Cr for 9 months FY 09)
EBIDTA & PAT – 9 Months (Consolidated )

Rs. in Crores

100.0 40.0
77% 83.7
90.0 30.0 16.1
80.0 20.0
70.0 10.0
60.0 47.2 0.0
50.0 (10.0)
40.0 (20.0)
30.0 (30.0)
20.0 (40.0) (45.6)
10.0 (50.0)
0.0 (60.0)
EBIDTA PAT
9M - FY08 9M - FY09 9M - FY08 9M - FY09

19
Hospital Performances

20
Hospital wise Operating Revenues

Rs. in Crores
160 +13%
146.4

140
129.8
+18%
115.9
120

98.2
100
+16%
80 72.8
62.5 +13%
+15% 53.0
60
43.7 47.0
38.1 +59%
40 +189%
27.6 29.8 +60%
+46% 21.2
18.7 14.9
13.3 +34%
20 9.6 10.2 6.9
5.1
0
Mohali NOIDA Escorts Escorts Escorts Escorts Vasant La Femme Malar Jessa Ram
Delhi Jaipur Faridabad Amritsar Kunj

9MFY08 9MFY09

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Hospital wise Operating EBIDTA

Rs. in Crores
30 +46%

25.9

25

+9x
20 +103%
17.7 17.8
15.6

15

+44% +357%
10 7.7 7.2
6.4
5.0
5
1.8 1.4
+49%
0
(2.4)
(4.7)
(5)
Mohali NOIDA Escorts Delhi Escorts Jaipur Escorts Faridabad Escorts Amritsar

9MFY08 9MFY09

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Mohali and Noida
Rs. in Crores
MOHALI: 50
+30% 41.5

 Revenue grew @ 30% and 18% over Corresponding 45

40
quarter and nine months respectively 31.9
35
 Dr. T S Mahant coveted with Himachal Ratan award 30
by the HP State Govt. 25
20
 Average Occupancy was 71% at the hospital
15
Mohali
Q3FY08 Q3FY09
NOIDA: Rs. in Crores
+17%
 Revenue grew @ 17% and 16% over Corresponding 25 22.8
quarter and nine months respectively 19.5
 Blood Bank at the hospital awarded with NABH 20
Accreditation
 Average Occupancy at 69% 15

 Oncology block work in progress

10
NOIDA

Q3FY08 Q3FY09

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Escorts Delhi

Rs. in Crores
60
 Revenue grew by 32% over corresponding quarter +32% 54.5

 6th consecutive quarter of growth, on an ongoing basis 50

41.1

 Operating EBIDTA – 18% for the quarter 40

 Crosses Rs. 20 Cr Revenue/month mark in Dec’ 08

30

 Observed highest occupancy @ 75% in December

20

 ARPOB at Rs. 1.05 Crores + for Q-3

10

 Highest number of PTCA (286) and Cath Lab (666)

0
procedures in a month recorded in Q-3 Escorts Delhi

Q3FY08 Q3FY09

24
Escorts Amritsar and Jaipur

Rs. in Crores
AMRITSAR:
 Revenue grew @ 90% and 59% over Corresponding quarter 14 +90% 11.1
and nine months respectively 12

 Achieves maximum revenue on a month on month basis 10

5.8
throughout the year 8

 Operating EBIDTA @ 28% for the quarter 6

4
 The hospital was awarded as “The Best Hospital for standing
up for Patient Rights” in an “Annual Conference of All India 2
Human Rights Association” 0
Escorts Amritsar
 The hospital also touched landmark of 10,000 Cardiac
Q3FY08 Q3FY09
procedures
Rs. in Crores
14.0
JAIPUR: 12.0 +51% 9.0

 Revenue grew @ 51% over Corresponding quarter 10.0

5.9
8.0
 Reports maximum Angiographies (107) and deliveries (34) in
6.0
the month of December
4.0
 OPD footfalls crossed 1,00,000 2.0
 Average Occupancy was @ 54% 0.0
Escorts Jaipur

Q3FY08 Q3FY09
25
Fortis Malar & La Femme

Rs. in Crores
Fortis Malar Hospital:
12.00 +73%
 Revenue grows @ 73% over Corresponding quarter
10.00 7.8
 Cardiac Sciences program launched on 15 Dec 2008
th
8.00

 Revenue grew sequentially over last 9 months. 6.00

4.50

 Dentistry program added 4.00

2.00
 Average Occupancy at 58% (adj.)
0.00
 ICU beds capacity expansion and renovation underway Malar

Q3FY08 Q3FY09
Rs. in Crores

LA FEMME: +85% 5.6

6
 Revenue grew @ 85% over Corresponding quarter 5
 Achieved maximum number of deliveries (117) in the month 4 3
of December 3
 Pre-survey for NABH conducted 2

 Occupancy @ 51% 1

0
La Femme

Q3FY08 Q3FY09
26
Legal Update

27
Legal Update:
Escorts:
Conversion and sale of Society: Anil Nanda matter.
HC dismissed the suit along with all the applications vide order dated July 3, 2008.
Anil Nanda and Goetze India filed appeal against the order.
Hon’ble High Court allowed the appeal and restored the suit and the interim order dated 30.09.2005 passed in the
suit vide judgment dated 16.01.09. Next Date: March 2, 2009.

Property: DDA terminated the Lease Deed based on violation of 25% free bed condition and merger/ conversion
resulting in transfer of land without DDA approval. - No Change, Next Date: March 24, 2009

Income Tax Matters:

Assessment of erstwhile Delhi and Chandigarh Society levying a demand of Rs. 124 Crs.
Demand for Rs. 81 Cr. set aside earlier this year by ITAT and ordered for fresh assessment, process for which is being
initiated by the departments pending.

Rajan Dhall:
Property: Lease Deed terminated by DDA on Nov 30, 2005 on grounds that the Society failed to construct the building
within the stipulated period; and the land has been transferred
No Change, Next Date: April 13, 2009
Estate Officer issued a show cause notice under the Public Premises Act for eviction.
No Change, Next Date: March 6, 2009

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 Thank You
29