August 2011

Fortis HealthcareFortis HealthcareInvestor Investor Presentation Presentation –– Q1 FY2012Q1 FY2012

This presentation may not be copied, published, distributed or transmitted. The presentation has been prepared solely by the company.Any reference in this presentation to “Fortis Healthcare Limited” shall mean, collectively, the Company and its subsidiaries. Thispresentation has been prepared for informational purposes only. This presentation does not constitute a prospectus, offering circular oroffering memorandum and is not an offer or invitation to buy or sell any securities, nor shall part, or all, of this presentation form the basis of,or be relied on in connection with, any contract or investment decision in relation to any securities. Furthermore, this presentation is not andshould not be construed as an offer or a solicitation of an offer to buy securities of the company for sale in the United States, India or anyother jurisdiction.Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering in theUnited States may be made only by means of an offering document that may be obtained from the Company and that will contain detailedinformation about the Company and its management, as well as financial statements. Any offer or sale of securities in a given jurisdiction issubject to the applicable laws of that jurisdiction.

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subject to the applicable laws of that jurisdiction.This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of theCompany, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknownrisks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of theCompany or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied bysuch forward-looking statements. Given these risks, uncertainties and other factors, recipients of this presentation are cautioned not toplace undue reliance on these forward-looking statements.The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of anysubsequent development, information or events, or otherwise. Unless otherwise stated in this presentation, the information containedherein is based on management information and estimates. The information contained herein is subject to change without notice and pastperformance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of thispresentation, without obligation to notify any person of such revision or changes.By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the marketposition of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potentialfuture performance of the business of the Company.Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under anycircumstances, create any implication that there has been no change in the affairs of the Company since that date.

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Discussion Points

� Snapshot – Financial and Operational Performance

� Highlights for the quarter

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� Hospital wise performance

� Update on projects

Highlights for the quarterHighlights for the quarter

� Key Highlights :

� Acquired strategic stake in Super Religare Laboratories (SRL) in line with our strategy to venture

into new healthcare services verticals and integrate under one umbrella to drive synergies, improve

quality and enhance reach

� The Company completed a decade of providing high quality healthcare services and reaffirmed its

commitment to creation of world class integrated healthcare delivery system , known for clinical

excellence and distinctive patient care.excellence and distinctive patient care.

� Network hospitals continue to register robust performance, overall growth at 6% over the trailing

quarter and 24% over the corresponding quarter

� 13th consecutive quarter of growth. 21 hospitals achieved highest ever quarterly revenue.

� Mr Aditya Vij joined as the Chief Executive Officer of the Company. Mr. Vij brings along rich

management experience spanning three decades in the corporate world

� New Medical Programmes and Growth Initiatives:

� Cardiac Programme was launched at S L Raheja hospital and a “Maternity and Child Care Center”

was inaugurated during the quarter

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Highlights for the quarter… Highlights for the quarter…

� Ground breaking ceremony for the Oncology Block at Fortis Mohali was held during the quarter.

Once completed, the block would have 75 beds including ~30 ICU beds and 15 day-care beds

� The Company launched an initiative christened ‘Medex Transformers’, in order to foster medical

excellence through processes and people. Four focus areas under the initiative are Clinical

Excellence, Process orientation, People emphasis and Customer satisfaction

� Recently, the company consummated 5 deals thereby adding 950 beds to the capacity: Arcot� Recently, the company consummated 5 deals thereby adding 950 beds to the capacity: Arcot

Road, Chennai, Kharadi, Pune and AB Road Indore.

� Besides the above projects, the Company is also setting up a 450 bed tertiary care hospital in

Hyderabad for which the land has already been allotted.

� Operating bed capacity was ramped up by ~ 150 beds which includes Fortis Escorts Delhi (30

beds), Fortis Mohali (28 beds), Fortis Noida (15 beds) and Fortis Mulund (40 beds)

� Corporate Social Responsibility (CSR)

� More than 125 free health camps were organized and ~ 33,000 people were scanned and free

surgeries/procedures (costing ~ Rs 1.10 Cr) were performed during the quarter.

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Total CapacityOperational

BedsNo. of Hospitals

Category wise

Owned 4,646 2,931 21

Managed 1,796 1,010 28

Projects 3,295 - 13

Grand Total 9,737 3,941 62

Region wise

North 4,568 2,067 29

South 2,219 663 13

Presence across - 16 States- 34 Cities

Deep pan India presenceDeep pan India presence

Not included in above map are international hospitals,

Owned Facility

Managed Facility

2,219 663 13

West 1,870 725 8

East 940 356 9

International 140 130 3

Grand Total 9.737 3,941 62

Maturity wise

More than 5 years

766 600 4

3 to 5 years 2,806 1,950 27

1 to 3 years 851 616 8

Less than 1 year 2,019 775 10

Projects 3,295 - 13

Grand Total 9,737 3,941 62

Heart Command

Centers (HCCs)

Projects

6

338

483

413

573

400

500

600 � Q1FY 12 – Consolidated

� Operating Revenue - Rs. 483 Cr ���� 43%

� Operating EBITDA* - Rs. 62 Cr ���� 27%

� Net Profit - Rs. 14 Cr ����

Snapshot Snapshot –– Financial PerformanceFinancial Performance

Rs. in Cr.

Statutory Q1FY11 Q1FY12*

Occupancy 76% 70%

+43% +39%

0

100

200

300

Consol Network

Q1 FY11 Q1 FY12

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� Q1FY12 – Network revenue

� Overall (incl diagnostics) -Rs. 573 Cr ���� 39%

� Network hospitals -Rs. 511 Cr ���� 24%

� Hospital (Consol) -Rs. 421 Cr ���� 25%

� Diagnostics (Consol) -Rs. 62 Cr

Occupancy 76% 70%

ARPOB (Annualized - Rs.

Lacs) 83 87

ALOS (Days) 4.1 3.9

*Operating bed capacity up by 150 beds during the quarter

Financial Highlights of the quarterFinancial Highlights of the quarter

� Hospital Business

� Hospital network revenue at Rs 511 Cr. This includes revenue from International Patients - Rs 31.4 Cr (+51%

q-o-q) (6.4% of hospital network revenue).

� Newly commissioned hospitals performed well and clocked revenue of ~Rs 27 Cr which includes Fortis

Shalimar Bagh, New Delhi and Fortis Anandpur, Kolkata

� On a Network-wide basis, the revenue from Cardiac sciences Orthopaedics, Neurosciences, Renal sciences,

Pulmonology, Gastroenterology and other multi-specialities grew by 15%, 42%, 24%, 41%, 16%, 56%, 46%

and 32% respectively

� A restructuring of group entities is underway whereby the holding structure is being rationalized/simplified to

improve governance, make radiology and OPD as a separate business vertical and ensure that tax

incentives offered by GOI are optimally utilized for the new hospitals.

� Diagnostics Business

� Operating revenue for the post-acquisition period (~7 weeks), stood at Rs 62.3 Cr. Overall quarterly revenues

for the business were Rs 123 Cr

� Operating EBITDA of SRL for the period under consideration stood at Rs 9 Cr, a margin of 14.3%. For the full

quarter, operating EBITDA is reported at Rs 16.8 Cr

� SRL reported net loss of Rs 1 Cr for the period under consideration, after an interest costs of Rs 6.0 Cr

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Hospital wise Revenue & Operating margins Hospital wise Revenue & Operating margins –– Q1FY12Q1FY12

7579

52

62

60

70

80

90

21%

16%

25%5%

17%

14%

36%

17%

Rs Cr.

16%

9

52

38

45

31

39

31

36

2832

19

26

19

22

15 17

0

10

20

30

40

50

FEHI Mohali Noida Mulund B G Road Vasant Kunj Jaipur Malar Amritsar

Q I FY11 Q I FY12

17%

18%

24%

22%

22%

26%

26%

24%

21%

26%

13% 15% 14%

The above chart depicts revenue of hospitals managed by Fortis healthcare and its subsidiaries.

23% 27%

20%

22%

22%

22%

MaturityMaturity--wise Performance wise Performance –– Q1FY12: Main HospitalsQ1FY12: Main Hospitals

MaturityRevenue

Contribution EBITDA

Contribution

Average

EBITDA margin *

Average Occupancy

Average ARPOB (Rs

Cr)

5 Years and Above (Four hospitals)

24% 33% 21.7% 79% 1.14

14% of operating beds aged 5

years and above contributes

24% to revenue

50% of operating beds are 3

to 5 years of age and 3 years to 5 Years (NineHospitals)

55% 67% 19.5% 74% 0.78

One to three Years (Eight Hospitals)

12% 5% 6.3% 57% 0.73

Upto one year (Three Hospitals)

9% (4%) (7.5%) 38% 0.72

* Average EBITDA margin has been calculated on Unit basis

to 5 years of age and

contributes 55% to revenue

16% of operating beds are 1 to

3 years of age and contributes

12% to revenue

20% of operating beds are up

to 1 year of age and contributes

just 9% to revenue

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Summary Summary –– Consolidated Profit and Loss Consolidated Profit and Loss –– Q1FY12Q1FY12

Q1FY12 Q1FY11

Particulars Hospital Diagnostics

Total business(Rs Cr.)

Total Business(Rs Cr.)

Growth (%)

(Rs Cr.) (Rs Cr.)

Operating Revenue 421.2 62 483.2 337.9 43%

Direct Costs 111.7 19.5 131.3 93.5 40%

Employee Costs 78.9 13.0 91.9 62.7 47%

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Employee Costs 78.9 13.0 91.9 62.7 47%

Other Costs 177.7 20.8 198.5 134.1 48%

Operating EBITDA* 52.9 8.9 61.8 47.6 30%

Other Income 19.5 1.4 20.9 33.7

Finance Costs 24.1 6.0 30.1 70.9

Depreciation & Amortization 28.8 5.7 34.5 21.5 60%

PAT after minority interest and share in associates

15.1 (1.1) 14.0 (14.3)

Hospital Business: Base OperationsHospital Business: Base Operations

Particulars Q1FY12

(Rs Cr.)%

Q1FY11

(Rs Cr.)% Growth (%)

Operating Revenue 421.2 100% 337.9 100% 25%

Direct Costs 111.7 27% 93.5 28% 19%

Employee Costs 78.9 19% 62.7 19% 26%

Other Costs 177.7 42% 133.1 39% 34%

Operating EBITDA* 52.9 13% 48.5 14% 9%

Other Income 19.5 5% 10.7 3% 82%

Finance Costs 24.1 6% 13.1 4% 84%

Depreciation & Amortization 28.8 7% 21.5 6% 34%

PAT after minority interest and share in associates

15.1 4% 21.6 6% -30%

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*EBITDA margin is after considering initial start-up losses of new hospitals and one-time restructuring costs (~7 Cr). On a like to

like basis Operating EBIDTA stood at Rs 60 Cr (14.9% margin).

Further, Net Profit on comparable basis stood at Rs 29 Cr

1029 1374

1630

2047

2,622 2,625

2,314 2,937

6,380 7,049

909 1,377

CTVS & Pediatrics PTCA CAG Others

No. of Procedures No. of Procedures –– Q1FY2012Q1FY2012

+14% +29%Cardiac Ortho

12,22513,988

3,421

2,659

0

10000

20000

Q1FY2011 Q1FY2012

15636

23055

Dialysis

1000

1100

1200

1300

1400

Q1FY2011 Q1FY2012

1152

1340

Neuro

Knee Replacements THR & OthersCTVS & Pediatrics PTCA CAG Others

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+16% +47%

Revenue Split

QIFY 11 QI FY12

Cardiac

Sciences

40%

OPD and

Others 15%

14

40%

Ortho 7%Neuro 5%

Renal 3%

Pulmo 1%

Oncology 4%

Gastro 2%

Multi-

Specialties

23%

Dependence on Cardiac Sciences has come down. At the same time, Orthopedics

& Renal Sciences share has gone up at the back of Joint replacement and Kidney

transplant programmes

Upcoming Greenfield Hospitals in IndiaUpcoming Greenfield Hospitals in India

No. Location BedsArea & Land Ownership

Date of Commencement

Estimated Capex (INR Cr)

Status

1 Kangra 100 37,000 sq. ft., B. Lease Q2 FY12 24

•Medical equipment is being installed

•Facility will be launched in Q2FY12

2 Dehradun 5027,000 sq..ft., Public Private Partnership

Q2FY12 15•Civil construction work of the hospital building is complete

•Interior work, installation of utility

** Only for Phase – 1, total size of the project is 1000 beds

3 Gurgaon 450** 11 Acres, Owned Q4 FY12 325

•Interior work, installation of utility equipment & external devlpt. underway.

•Medical equipment under order

•Rs 214 Cr has been spent till June’11.

4Richmond Road, Bangalore

100 52,000 sq.ft., B Lease Q1 FY 13 35•Cold Shell, under modification to suit

to a hospital

5 Ludhiana – 1 200 1,55,000 sq. ft., B. Lease Q2 FY13 50•Construction in full swing. Casting of columns in progress•Project on schedule

6 Chennai 200 138,000 sq.ft., B Lease Q2FY13 92•Cold Shell, under modification to suit

to a hospital

7 Ludhiana – 2 75 60,000 sq ft. B. Lease Q3FY 13 20•Approval from govt. authorities received; design work underway

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Upcoming Greenfield Hospitals in India Upcoming Greenfield Hospitals in India

No. Location Beds Area & Land OwnershipDate of Commencement

Estimated Capex (INR Cr)

Status

8Peenya, Bangalore

120 ~70,000 Sq ft; B. Lease FY13 18 •Construction work underway

9 Pune 350 252,000 sq.ft., B Lease FY13 63•Cold Shell, being modified for a tertiary

care facility9 Pune 350 252,000 sq.ft., B Lease FY13 63

care facility

10 Gwalior 200 2.5 Acres, L. Lease FY14 72•CLU permission received; building approval by the local authorities and high rise committee underway

11 Ahmedabad 200 1,55,000 sq. ft., B. Lease FY14 50•Approval from govt. authorities for CLU underway

12 Indore 250 175,000 sq.ft., B Lease FY14 50•Build to suit arrangement; CLU obtained

and building plans being firmed up

13 Hyderabad 450 300,000 sq.ft., Owned FY15 210•Greenfield hospital, possession of land

being taken over, Architectural plans being

firmed up

Total 2,745 1,024

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Balance Sheet as at June 30, 2011Balance Sheet as at June 30, 2011

Balance Sheet Rs Crore

Shareholder’s Equity* 3,441

Foreign Currency Convertible Bonds (FCCB’s) 454

Debt 1,628

Total Capital Employed 5,522

Goodwill 1,906 Goodwill 1,906

Net Fixed Assets (including CWIP of Rs 344 Crore) 2,291

Investments

- in Associates 8

- Deposits (including Inter-Corporate Deposits) 662

- Liquid and Mutual Funds 27

Cash and Bank Balances 130

Net Current Assets** 499

Total Fixed Assets 5,522

Net Debt ( 0.21 :1 ) 808

* Shareholder’s Equity is inclusive of Revaluation Reserve and Minority Interest** Net Current Assets includes Deferred Tax Assets*** Net Cash Surplus excludes FCCB’s

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Thank You…Thank You…

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