Investor

Presentation

SHALBY LIMITED (BSE CODE: 540797 I SHALBY, NSE CODE: SHALBY)

A leader in Joint Replacement surgeries in India with an established chain of multi-specialty tertiary care hospitals.
AGENDA

01 BUSINESS
OVERVIEW

02 FINANCIAL PERFORMANCE

03 STRATEGIC DIRECTION

04 APPENDIX

2
BUSINESS OVERVIEW
OUR REGIONAL
Shalby has developed strong brand recognition in its core markets and is well positioned for further expansion

National Presence International Presence (in Africa)

PUNJAB
Mohali – 145 beds

RAJASTHAN
Jaipur – 237 beds

GUJARAT
Ahmedabad
SG – 201 beds
Krishna – 220 beds
Vijay – 27 beds
Naroda – 267 beds
Vapi – 146 beds
Surat – 243 beds

MADHYA PRADESH
Indore – 243 beds
Jabalpur – 233 beds

MAHARASHTRA MAHARASHTRA Upcoming Two Units

Ghatkoper (Zynova) – 50 beds Mumbai (Santacruz) – 175 beds
Nashik – 113 beds
4
 Ghatkoper (Zyonova) – 100 beds
BUSINESS

Greenfield 907 Beds Brownfield 977 Beds

Ac quisition 366 Beds Franchise
Franchis

New Growth Area

Lower capital
2017 Year 2015 Year
Naroda 267 Beds Jabalpur 233 Beds
Lease

2007 Year 2017 Year

SG 201 Beds
Mohali 145 Beds

2024 Year 2023 Year

Santa Cruz 175 Beds Nashik 113 Beds

2017 Year 2015 Year 2012 Year

Jaipur 237 Beds Indore 243 Beds Krishn a 220 Beds
Freehol

1994 Year 2017 Year 2012 Year

Vijay 27 Beds Surat 243 Beds Vapi 146 Beds

Upcoming hospital developments

Faster time to market

Notes:
1. SG Group comprises of SG and Vijay. Surat Group comprises of Surat and Vapi 5
2. Fixe d rent of Rs. 5L per month is paid by Shalby SG to Dr. Vi kram Shah and Rs. 50,000 per month is paid by Vijay Shalby to Sh alby Orthopedic and Research Centre in which Dr. Vikra m Shah is a partner
3. Total bed count of 2012 includes 50 beds at Zynova-Sh alby Hospital, Mumbai
BUSINESS
Our Business Model – Optimising Capex and Opex

Operational Efficiency due to

Optimize capex planning with Inhouse better capex planning
projects team

Cost per bed ~ Rs. 4.5 millions for fully owned set-up. Lower for leased premises
EBITDA upwards of 20% which is higher than industry average

Leveraging economies of scale through

Better utilization of space [and expensive real estate]
Utilities planning to optimize Low consumable centralized procurement
capex cost

 Lowest Capex and Opex per  Focus on surgeries with higher  Gradual ramp-up of
6
bed bed margins and return ratios c apa city
HOSPITAL MATURITY
Shalby Hospitals generates positive EBITDAR Margin within 3 years of its operations
33% 13% 15%
Avg. EBITDAR Margin Avg. EBITDAR Margin Avg. EBITDAR Margin

SG Group Krishn a Naroda

Indore Jaipur Nashik

Jabalpur Surat Group Mohali Santa Cruz

8+ Years 5+ 3+ 2+ Pipeline
Years Years Years

Pipeline focused on high ARPOB regions and Franchise rollout

Nashik Pipeline

Santa Cruz Pipeline SG Group Jaipur Naroda

Mohali Krishn a Jabalpur Indore Surat Group

<200 200 – 230 231 – 240 241 – 260 261+ Beds

Beds Beds Beds Beds

Note:
Brownfield 7
1. All numbers are on Standalone and FY20 basis Greenfield Acquisition
 HOSPITAL BUSINESS
Santa Cruz Development Update Nashik Development Update

Business Model: Revenue Sharing

Bed Capa city: 175 Business Model: Revenue Sharing
Operating and Management Term: 30 + 30 years
Bed Capa city: 113
Operationalization Year: FY 2024
Estim ated Cost: Rs. 1,600 million Operating and Management Term: 30 years
Operationalization Year: FY 2023
Approval awaited from Brih anmumbai Municipal Corporation (BMC)
Estim ated Cost: Rs. 310 million

Brownfield development with Shalby to invest

in medic al equipments

8
 BOARD OF

Experienced Board of Directors

Dr. Vikram Shah

Chairman and Managing Director Mr. Shyamal Joshi
Non-Executive Director

Over two and a half decades of professional healthcare experience a cross UK, USA and India, Dr.Associated
Shah has with
beenShalby Hospitals
serving since of
as Director 2010,
the Mr. Joshi hasof
Department signific
Kneeant experience
Repla cementinatvarious
Shalbyareas including
Hospitals corpora
since 1993

Dr. Ashok Bhatia Dr. Umesh Menon

Non- Executive Director Independent Director

With more than 40 years of professional experience, in the past Dr. Bhatia was associated with Cadila Healthcare as President, Emerging Markets. Currently, he is an external consultant of McKinsey & Co and a visiting facu

Dr. Menon has experience in the areas of finance and cost accounting and is currently also on the board of

Mr. Tej Malhotra Ms. Sujana Shah

Independent Director Independent Director

Mr. Malhotra has over four decades of experience in various industries both in India and internationally. Previously
Ms. Shahhe
is held the positions
a practicing of Senior
Chartered Executive
Accountant andDirector
has vastatexperience
GHCL, Te chnical
of over Director
18 yearsat
inIdea Sodaof
the fields Ash and Calc
finance, acc
Company of Saudi Arabia and Executive Engineer (Mechanical) at Hindustan Copper.

9
 SENIOR

Senior Management

Mr. Shanay Shah Mr. Muraarie Rajan

President Principal Advisor to CMD

25business,
With over six years of experience in the healthcare industry, Mr. Shah is involved in overseeing the international years experience
investor in corporate
relations andstrategy, mergers and ac
digital transformation quisitions
of Shalby and fund raising. Worked at Wolfensohn & C
Hospitals.

Mr. Prahalad Rai Inani Dr. Nishita Shukla

Chief Financial Officer Chief Operating Officer

Mr. Inani has over 24 years of experience in the fields of finance, accounts, financial planning & analysis,Dr. Shukla holds
budgeting, cost acontrol,
ba chelors’ degree
project in Homeopathic
costing Medicine
and auditing. and Surgery
Previously he wasand has
asso experienc
ciated with eApollo
of overHospitals
13 year

Mr. Babu Thomas

Mr. Jayesh Patel Chief Human Resource Officer
Company Secretary and Compliance Officer
With over 25 years of experience in talent management, Mr. Thomas heads the Human Resources and Operation

With over 18 years of experience in the field of corporate law Mr. Patel is involved in the legal, corporate compliance and secretarial matters of Shalby Limited.

1
FINANCIAL PERFORMANCE
ANNUAL PERFORMANCE TRENDS
Increasing number of patients across all care formats reflects Shalby’s strong brand recognition

In Patients Out Patients

Day Care
23,728 325,596
39,030 7.5% Y-o-Y 19,674 20.6% Y-o-Y 296,197 9.9% Y-o-Y
36,311
222,970
27,771

5,196

FY 18 FY 19 FY 20 FY 18 FY 19 FY 20 FY 18 FY 19 FY 20

ARPOB (In Rs.) Surgery Count

31,564 31,296 30,457 19,908 19,835

17,554

FY 18 FY 19 FY 20
FY 18 FY 19 FY 20

1
ANNUAL PERFORMANCE TRENDS
Signific ant impact on FY20 surgeries due
to Covid-19 during March-20

1
ANNUAL PERFORMANCE TRENDS
11% Number of
12% beds occupied
13% increased by 8.9% y-o-y and occupancy rate of 38%
2% 4% 5%

Hospital Revenue Mix by Care % of Revenue from Arthroplasty

84% 83%
88%
55%
45% 45%
FY 18 FY 19 FY 20

FY 18 FY 19 FY 20
In Patient Day Care Out Patient

No. of Beds Occupied ALOS (Days)

Occupancy Rate

37% 38%
450 8.9% Y-o-Y 4.22
413 4.15
29% 3.70
335

FY 18 FY 19 FY 20 FY 18 FY 19 FY 20 FY 18 FY 19 FY 20

Adjusted 28% 38%

34%
Occupancy
Notes:
1. Occupancy rate is on the basis of operational beds. Adjusted o ccupancy rates is on the basis of FY20 operational beds of 1200 13
2. ALOS is without Day Care
HOSPITALS
Revenue by Hospital Specialty

50%
45% 45%
40%
30%
20%
11% 10% 11% 9% 9% 10% 11%
7% 6% 8%
10% 4% 4% 4% 5%
0%
Arthroplasty Cardiac Science Cardia Care & Nephrology Neurology Oncology Other Ortho Others
General Medicine

FY 19 FY 20

Number of Surgeries by Specialty Revenues by End Patient

16% Arthroplasty
Orthopedic 60%

3% 21% Nephrology 48%

3%
3% Surgery Mix (Nos.) General Surgery
4% 44% 48%
Cosmetic & Plastic 27%
3% 23%
20%
7% 3% Surgery Oncology 15%
6%
6% Cardiac Science 4% 2%
8% 13%
Others
Self Pay Corporate Insurance Corporate Priva te
12%
Government
FY 20
FY 19 FY 20
FY 19
Note: 14
1. All numbers are on Standalone basis
FINANCIAL

Total Revenue (Rs. Mn)

21.5% Y-o-Y 6.9% Y-o-Y 14.0% CAGR

5,042
4,715
3,880

FY 18 FY 19 FY 20

Significant impact on FY20

surgeries due to
Covid-19 during March-20

1
FINANCIAL

Total EBITDA (Rs. Mn) Total PBT (Rs. Mn)

22.7%
13.8% 567 12.6% Y-o-Y
19.7%
19.4% 8.1% Y-o-Y 11.3%
10.7%
537

991
504
916
881

FY 18 FY 19 FY 20 FY 18 FY 19 FY 20

Despite subdued FY20 revenue growth, Shalby continued to deliver higher

margins

1
FINANCIAL
Ongoing optimization of doctor cost and centralized sourcing of medical instruments, devices and consumables

Total Operating Expenses (Rs. Mn) Total Costs ex Finance Cost (Rs. Mn)

4,051
3,799 D&A Expenses
7% 8% 8%
2,999 10% 8% 10% Other Exp enses
14% 15%
16
12% 10% 12% Employee Benefit Expenses

Purchase and Change in

57% 59 55% Inventory
% Operative and Other
FY 18 FY 19 FY 20 Expenses
FY 18 FY 19 FY 20

Doctor Costs Consumables Other Operative Expense Employee Costs

as % of Revenue from Operations as % of Revenue from Operations as % of Revenue from Operations as % of Revenue from Operations

26.9% 25.7%
23.8%

15.8% 14.8%
14.1% 14.0% 13.5%
10.5% 11.9%
10.1% 9.3%

FY 18 FY 19 FY FY 18 FY 19 FY FY 18 FY 19 FY FY 18 FY 19 FY 20
20 20 20

Notes:
1. Total Operating Exp enses comprises of Operative and other expe nses, Purchase and Change in Inventory, Employee costs and Othe r Exp enses
2. All numbers are on Consolidated basis 17
FINANCIAL

Total Profit after Tax (Rs. Mn)

(107)
460
10.4% 291
6.8%
5.7%

392

317
276

FY 18 FY 19 FY 20 Accounting Tax Cash Tax Adjusted PAT FY20

Note: 18
Adjusted PAT FY20 reflects Profit after de duction of Cash MAT Tax outflow from PBT
1. Cash tax rate is c alculated as Taxes outflow as per c ash flow divided by PBT
 HOSPITAL INVESTMENT
Return on Capital Employed currently reflects real estate investments and a relatively younger maturity portfolio

Shalby Branding Phase 2 Hospitals with 228 beds Investment Phase

Added 8 Hospitals with 1,734 new beds

Current
Phase IV Occupancy of 38% reflec
Phase I – Capex Rs. 4 mn* Phase
Phase II – Capex Rs. 329 mn* Launch of Shalby SG in 2007 Total III
2 Hospitals with 228 Beds Capex Rs. 4,811 mn* Phase V – Capex Rs. 678 mn* of hospital portfolio given
1 Hospital with 27 Beds Capex Rs. 1,103 mn* Launch of VapiLaunch
and Krishn a
of 5 New Launch of 1 New Hospital:
Hospitals: Jabalpur, Indore, Jaipur, Naroda and Surat Mohali Total 10 Hospitals with 1
Total 4 Hospitals with 594 Beds Total 9 Hospitals with 1,817 Beds

70%

60% 58%
55%
48%
50%
43%
40%
ROCE on Avg Capital

30% 25% 25%

24%

20% 17%
13% 14% 13%
11% 10%
10% 7% 8%

0% 0%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

ROCE on Avg CE

Notes:
1. ROCE is c alculated as EBIT divided by Average Capital Employed. FY20 EBIT is excluding CSR Expense of ~Rs. 3 Crores
2. Total bed count of 1,962 at the end of FY20 is excluding Zynova bed count of 50
3. All numbers are on Standalone FY20 basis 19
4. Occupancy rate is c alculated on operational number of beds
5. * Capex with respect to hospitals is a ctually spread over multiple years till 2020
 HOSPITAL MARGIN PROFILE
Each hospital group makes a positive contribution at the Shalby level where corporate costs are 4.7% of total revenue

ARPOB Rs. 51,231 27,843 21,382 22,635 31,517 24,427 16,801

40%

35.6%
35%

30%

25.9%
EBITDA

25% 24.5%
23.2% Hospital and Other
EBITDA Margins
20%

14.7%
15% 19.7%
11.9% EBITDA Margins
10.9%
10% 8.5%

5% Corporate Cost 4.7%

nm
0%
SG Group Krishna Naroda Indore Ja ipur Surat Group Jabalpur Mohali

Notes:
1. Hospital and Other EBITDA Margins is a sum of Hospital EBITDA divided by Total Income and Other Income divided by Total Incom e
2. Corporate Cost primarily comprises of corporate employees , advertisements, CSR expenses, taxes and professional fees
20
3. All numbers are on FY20 basis
 HOSPITAL MARGIN PROFILE
Shalby is able to operate hospitals profitability at EBITDA and EBITDAR levels even at a bed occupancy of
30%

30.5%
Min. Occupancy
45.0%

40.0%

35.0% SG Group, 36.0%

30.0%
EBITDAR Margins

25.0% Krishna, 25.9%

Naroda, 25.7%
20.0%

15.0% Surat Group, 10.9%

Jaipur, 11.9% Indore, 14.7% 10.5% Min. EBITDAR

10.0%

Jabalpur, 10.5%
5.0%

0.0%
20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0%

Bed Occupancy %

Notes:
1. Mohali is less than 3 years of operation hence not included
2. All numbers are on Standalone FY20 basis 21
3. Bubble size represents FY20 Standalone Revenue
FINANCIAL

Cash Flow Statement (Rs. Mn) – FY20

4
• Mat tax outflow of Rs. 107 mn, Tax
(176) receivables created of Rs. 95 mn
360
(202) • Maintenance c apex of 3.9% of
(198) Total Income

567 553 (109) • Net other investment a ctivity of

(215)
Rs. (161) mn
31
• Interest received of Rs. 52 mn
PBT D&A Other Non Cash
Working Capital
Taxes
Changes
Paid Cash flow from CapExOtherCash fromFree Cash Investments Finan cingFlow
• Debt and interest repayment of
Charges operations Rs. (150) mn
• Dividend Payment of Rs. (65) mn

Cash Flow Statement (Rs. Mn) – FY19

• Maintenance c apex of 7.6% of

26
Total Income
332 (333)

• Net other investment a ctivity of

(94) Rs. 236 mn
504 (315) 329 (512) • Interest received of Rs. 93 mn
434
• Debt and interest repayment of
(65) Rs. (512) mn
PBT D&A Other Non Working Taxes Paid Cash flow CapEx Other Cash from Free Cash
Cash Capital from Investments Finan cing Flow
Charges Changes operations

Note:

1. All numbers are on Consolidated basis 2

FINANCIAL
Strong EBITDA to Cash Flow conversion rate of 55.9%. Unlevered balance sheet results in lower Return on Equity

ROE ROCE
7.7% 7.3%
6.9%
5.8%
5.2%
4.1%
3.5%

FY 18 FY 19 FY 20 FY20 Adjusted FY 18 FY 19 FY 20

CFO to EBITDA Capital Structure

55.9%
47.4%
Figures in Rs Million FY 18 FY 19 FY 20

Gross Borrowings 1,137 708 622

15.8% Cash and Investments 1,162 862 1,021

Net Debt/ (Net Cash) (25) (154) (399)

FY 18 FY 19 FY 20
Equity 7,515 7,798 7,992
Notes:
1. FY20 Adjusted ROE is c alculated using Adjusted PAT for MAT c ash outflow adjustment 23
2. ROCE is calculated as EBIT divided by Average Capital Employed (Total Assets – Total Current Liabilities)
3. All numbers are on consolidated basis
FINANCIAL
Over last two years, Total Revenue increased by 14.0%and EBITDA by 6.1% CAGR with EBITDA margins at 19.7%
Increasing number of patients a cross all c are formats reflects Sh alby’s strong brand recognition: In Patients 7.5%, Day Care 20 .6% and Out Patients 9.9%
Number of beds occupied increased by 8.9% y-o-y and current o ccupancy rate of 38%, increasing by 4% last year on a like for like basis Shalby’s diversific ation str

Arthroplasty surgeries are increasing in number but declining as a percentage of Total Revenue as part of the diversific ation st Arthroplastyrategy
to reach 35% of total revenues in t
Relatively newer hospitals (Jaipur, Mohali, Naroda and Surat) payer mix now moving more towards self-pay which is expected to r higher ARPOB
Average length of stay increasing in line with greater trend towards non-arthroplasty surgeries
Revenues

Actively sourcing direct patient referrals from Kenya and Tanzania, in addition to partnerships with international hospitals esult in

Ongoing optimization of doctor costs within COGS resulting in amove from fixed pay to minimum guarantee to visiting doctor model
Centralized sourcing of medic al instruments, devi ces and other c onsumables a cross all Shalby do ctors
Greater than 95% of material purchases are from J&J and Meri l India; less than 2% from Slaney, a promoter group company
Cos

s
t

PBT margins at 11.7% and PAT margins adjusted for c ash tax at 9.1%
Well c apitalized balance sheet with Debt of Rs . 62 Crores, Cash and investments of Rs. 102 Cr Strong EBITDA to Cash Flow conversion rate of 55.9%
Return on Capital Employed of 7.3% based on current occupancy rate of 38%
Return

Unlevered net debt balance sheet results in lower Return on Equity

Note: 24
1. All numbers are for FY20 perio d
 H1 FY2021 PERFORMANCE

Particulars (in Rs. Million) Q1 FY21 Q2 FY21 Q-o-Q Growth H1 FY21

Revenue from Operations 384 1,156 200.7% 1,541
Other Income 23 24 2.2% 47
Total Income 408 1,180 189.5% 1,587
Expenses
COGS 271 633 133.9% 903
% of Revenue from Operations 70% 55% 59%
Employee Benefit Expenses 88 143 61.9% 231
% of Revenue from Operations 23% 12% 15%
Other Expenses 74 86 15.8% 160
% of Revenue from Operations 19% 7% 10%
Total Operating Expenses 434 862 98.7% 1,295
% of Revenue from Operations 113% 75% 84%

EBITDA (25) 318 - 293

EBITDA Margins % (6.2)% 27.0% 18.5%
Depreciation and Amortisation 90 92 2.5% 182
Finance Cost 12 8 (34.1)% 20
PBT (127) 219 - 92
Total tax (40) (26) (34.8)% (66)
Effective Tax Rate % 31.4% (11.9)% (71.5)%
PAT (87) 245 - 158
PAT Margins % (21.4)% 20.7% 9.9%

Notes:
1. Margins are c alculated on the basis of Total Income 25
2. All numbers are on consolidated basis
 H1 FY2021 PERFORMANCE

Capital Structure Operational Performance

Figures in Rs Million Mar-20 June-20 Sep-20 Q-o-Q

Operational Metrics Q1 FY21 Q2 FY21
Growth
In Patient Count 3,664 7,573 106.7%
Gross Borrowings 622 494 476 (Nos.)

Day Care Patient Count 3,763 5,026 33.6%

(Nos.)
Cash and Investments 1,021 983 985
Out Patient Count 32,305 56,619 75.3%
(Nos.)

Surgeries Count 843 1,622 92.4%

ARPOB 21,848 24,837 13.7%
Net Debt/ (Net Cash) (399) (489) (509) (Rs.)

Bed Capa city 2,012 2,012 0.0%

(Nos.)
Equity 7,992 8,064 8,087 Operational Beds
(Nos.)
1,200 1,200 0.0%
Occupancy 205 489 138.4%
Note: (Beds)
1. All numbers are on consolidated basis
Occupancy (%) 17.1% 40.8% 138.4%
(operational beds)

Average Length of Stay 5.10 5.94 16.6%

(without Daycare)

Note: The operational bed count of 1,200 cons iders 36 operational beds at Zynova-Shalby
Hospital, Mumbai, for which no other operational parameters are tra cked

2
 H1 FY2021 MANAGEMENT

Commenting on performance, Mr. Shanay Shah, President Said:

All our hospitals, except SG Shalby, have continued to treat Covid-19 patients and provide the required
infrastructure support and medic al fa cilities needed to try to address this ongoing unprecedented health
crisis. In addition to having treated over 3,250 Covid-19 patients in total across our hospital group, during the
last quarter we have also registered an increase in both arthrop lasty and orthopedics elective surgeries. As a result of this,
we have seen a sharp rebound in both our business and financial key performance indic ators during Q2 FY21.

During the quarter, Shalby delivered total income of Rs. 1,180 million, an increase of 189% on a q-o-q basis. This was due to
bed occupancy levels moving up meaningfully to 41% in Q2 FY21 as compared to 39% in the same quarter last year.
EBITDA returned to profitability at Rs. 318 million and margins improved significa ntly to 27.0%. The margin improvement was
primarily driven by higher occupancy from Covid-19 pati ents coupled with lower consumption of materials and
consumables. Overall, net profit was Rs. 245 million with margins of 20.7%. From a balance sheet persp ective, Shalby
remains well capitalize d with net cash of Rs. 509 million at the end of September 2020 compared with Rs. 489 million last
quarter.

With the removal of lockdown and travel restrictions, business activity started to show early signs of normalization, however
Covid-19 c ases continue to rise across the country. Our senio r management team remains fully committed to ensure best in
class healthcare fa cilities are being provided to patients across our hospital group. Furthermore, Shalby continues to
provide patients with affordable home c are medic al services.

Note:
1. All numbers are on Consolidated basis

2
STRATEGIC DIRECTION
 CARDIAC

The Cardiac growth story in India

~ 2,00,000

~ 50,000
Year 2017 CAGR – 29% in 30 years.
~ 5,000 Surgeries Currently growing @ 2-3%

Year 2004
~ 500 Surgeries
Year 1994 Surgeries

Wide procedure penetration to

Year 1984 Surgeries Tier 2 and 3 cities

2
 FRANCHISE MARKET

Knee Replacement - The big opportunity

~ 2,05,000

~ 1,28,000
In terms of volume for joint pain and knee problems, pote
Year 2020 base of
~ 80,000 Surgeries population over 45 years in India is 343 m

Year 2016 Surgeries

~ 50,000
Year 2012 Surgeries In India,
Joint
replacement surgeries are expected to grow at a
~ 17,500 CAGR of 11-12%
till 2024 to rea ch
Year 2008 Surgeries ~0.4 mn size of orthopedic implants market in India is US$1,604 m
Current
expected to rea ch US$ 2,881 mn by 2024
Asian
population 15 times more
prone to Arthritis of knee than their western
Year 2004 Surgeries counter parts

3
 FRANCHISE MODEL ASSET
Minimum Requirement
Standalone Building with focus only on Orthopedics
Carpet Area: Min. 10,000 sq. ft. and Max. 30,000 sq. ft.
Bed Capacity: Min. 25 and Max. 50 beds
Agreement period: 10 years
Located in key catchment area
Brownfield project

Potential Partners
Businessmen
Real Estate Owners
Hospital Owners
Doctors

Financial Model
ShalbyShalby SystemOperations Franchise Pure Revenue Sharing Model
Shalby No minimum Guarantee to be paid
system Operations
Shalby Brand OPEX to be managed by Shalby in case of FOSO and by franchisee in case of FOFO

Shalby
Brand
Operations Model
All employees at the franchise will be trained in Shalby‐system by Shalby’s Learnin
Shalby’s STANDARD OPERATING PROCEDURE for all systems and processes
Shalby’s HOSPITAL INFORMATION SYSTEM will be implemented for uniform service

Franchise Owned – Shalby Operated (FOSO)

Franchise Owned – Franchise Operated (FOFO)
31
HOMECARE SERVICE

Present offerings Future offerings

Home COVID-19 c are pa ckage ICU Setup @home

Nursing (incl. critic al c are) Chronic dise ase management
Attendant
Physiotherapy Rehabiliation
Pathology
Medic al Equipment Person alise d & tech enabled integrate
Pharma cy @home
Home visits by doctors

Strategy:
The healthcare dynamics in India all point toward s a high need for afford able medic al services require d at home
32
 CARE CARD PRIMARY

Membership Fee : Rs 2500 / -

Complimentary Health check-up : Worth Rs 2500/-
OPD Services discount: Consultations(20%), Lab & Diagnostics (15%)
OP Pharmacy discount: 10%
IP Services discount: 15%
Super-specialty Surgery discount: NA
Room Category: Economy

Strategy:
Mechanism to promote health awareness and brand loyalty
Provid e affordable healthc are services to th e people who do not have Mediclaim/Insurance
3
CARE CARD PRIMARY

3
APPENDIX
 ORGANISATION

 CORPORATE STRUCTURE  UNIT LEVEL STRUCTURE

Unit CAO

Chairman & Managing Director Clinic al Applic ations

Corporate development Accounts
HR
Hospitality IT/Systems Billing
Pharma cy
Advisor to CMD Group COO VP Admin/ Operations/Eng. Quality
President CFO CHRO CIO
Projects SCM
Nursing
Radiology & Pathology
Cluster COO CORPORATE SUB-FUNCTIONS

Unit CAO

UNIT TEAMS

Internal Auditor Statutory Auditor

Internal Statutory

 PWC  T R Chadha & Co LLP

3
 HOSPITAL BUSINESS

Commencement 2007 | 13 Years

Catchment: Ahmedabad and surroun ding areas of Gujarat,
No. of beds / Occupancy 201 | 50.3%
Rajasthan and Mumbai
S

Type of Arrangement Leased – Fixed

• Cardiac science business increased by 28.6% c ompared
to Q2 FY20
Rent S
• Average occupancy continue to increase in Q2 FY21 G

SG
Revenue Contribution % 32.8% • Home c are increased by 50% compared to Q2 FY20 G
r
Commencement 1994 | 26 Years o
u
No. of beds / Occupancy 27 | 11.1% Catchment: Ahmedabad and surroun ding areas of Gujarat
Vij

Type of Arrangement Freehold • Vijay was one of the first to start Covid-19 treatment in
Ahmedabad
Revenue Contribution% 0.4%

Commencement 2012 | 8 Years

Catchment: Ahmedabad and surroun ding areas of Gujarat and
No. of beds / Occupancy 220 | 36.9%
Rajasthan. Also attracts international patients
Krish

Type of Arrangement Freehold

• Average occupancy continue to increase in Q2 FY21
• Critic al c are specialty witnessed good traction
Revenue Contribution% 12.3%

Commencement 2017 | 3 Years

Catchment: Ahmedabad and surroun ding areas of Gujarat
No. of beds / Occupancy 267 | 55.1%
Naro

• Treated more than 500 Covid-19 positive patients

Type of Arrangement Leased – Revenue Share • Growth in onc ology, nephrology, c ardiology and critic al c are
• Tie-up with nearby nursing home and consultants
Revenue Contribution% 8.0%
Notes: 36
1. Revenue contri bution % is a contri bution to total hospital
revenue Q2 FY21 Business Update
2. All numbers are on Standalone FY20 basis
 HOSPITAL BUSINESS

Commencement 2017 | 3 Years

Catchment: South Gujarat, North Maharashtra (including
No. of beds / Occupancy 243 | 39.1%
Mumbai)
Sur

Type of Arrangement Freehold • Treated more than 600 Covid-19 patients

• Highest ever occupancy in ICU

Surat
Revenue Contribution% 10.0% • Great response to Covid-19 home c are pa ckages

Commencement 2012 | 8 Years

Catchment: South Gujarat
No. of beds / Occupancy 146 | 20.0%
Va

• First private hospital to start Covid-19 treatment in

Type of Arrangement Freehold Valsad distric t
• Delivered first healthy baby of Covid-19 positive mother in
Revenue Contribution% 1.4% Vapi

Commencement 2012 | 8 Years

No. of beds / Occupancy 243 I 46.0% Catchment: Madhya Pradesh

Indo

Type of Arrangement Freehold • Star consultants engaged in departments of c ardiology, neuro

surgery , general surgery on visiting mode
Revenue Contribution% 13.0%

Commencement 2015 | 5 Years

Catchment: Madhya Pradesh
No. of beds / Occupancy 233 | 35.3%
Jabaplp

• Treated more than 200 Covid-19 patients

Type of Arrangement Leased – Revenue Share
• Starting of Covid-19 ICU Services
• Digital promotion of clinic al services
Revenue Contribution% 7.6%
Notes: 37
1. Revenue contri bution % is a contri bution to total hospital
revenue Q2 FY21 Business Update
2. All numbers are on Standalone FY20 basis
 HOSPITAL BUSINESS

Commencement 2017 | 2+ Years Catchment: Punjab, Uttrakhand

No. of beds / Occupancy 145 | 24.7% • Top floor dedic ated for Covid-19 patients
Moh

• Major specialties like arthroplasty, urology and medicine

Type of Arrangement Freehold showing recovery in Q2 FY2021
• Revenue sharing arra ngement with top orthopedic surgeons
Revenue Contribution% 3.7% of tri-city (Mohali, Chandigarh & Panchkula)

Commencement 2017 | 3 Years Catchment: Rajasthan, Western UP, Punjab, Delhi

No. of beds / Occupancy 237 | 36.0% • Zero doctor attrition amidst the Covid-19 crisis
Jaip

• Highest number of child deliveries amongst all c

Type of Arrangement Freehold orporate multispecialty hospitals in Jaipur
• Growth in Spine, c ardiac, gynae neonatal & internal medicine
Revenue Contribution% 10.8% • Good occupancy levels with highest ever in September 2020

Commencement 2017 | 3 Years

Catchment: Mumbai
No. of beds / Occupancy 50 / na
Zyno

• Converted into Covid-19 facility from 1st June to 31st Aug 2020
Type of Arrangement O&M Model • 24 beds were given for Covid-19 including 15 beds in ICU
• Rebound in o ccupancy levels in Q2 FY21
Revenue Contribution% na

Q2 FY21 Business Update

Notes:
1. Revenue contri bution % is a contri bution to total hospital revenue
2. All numbers are on Standalone FY20 basis

3
 ANNUAL PERFORMANCE TRENDS

Particulars (in Rs. Million) FY 18 FY 19 FY 20 CAGR

Revenue from Operations 3,780 4,623 4,869 13.5%
Other Income 100 93 174 31.7%
Total Income 3,880 4,715 5,042 14.0%
Expenses
COGS 2,219 2,833 2,953 15.4%
% of Revenue from Operations 59% 61% 61%
Employee Benefit Expenses 451 646 655 20.5%
% of Revenue from Operations 12% 14% 13%
Other Expenses 330 320 443 15.9%
% of Revenue from Operations 9% 7% 9%
Total Operating Expenses 2,999 3,799 4,051 16.2%
% of Revenue from Operations 79% 82% 83%

EBITDA 881 916 991 2.3%

EBITDA Margins % 22.7% 19.4% 19.7%
Depreciation and Amortisation 229 332 360
Finance Cost 115 81 64
PBT 537 504 567 2.8%
Total tax 146 187 291
Effective Tax Rate % 27.2% 37.1% 51.3%
PAT 392 317 276 (16.1)%
PAT Margins % 10.1% 6.7% 5.5%

Note: Margins are c alculated on the basis of Total Income

3
 ANNUAL PERFORMANCE TRENDS

Operational Metrics FY 18 FY 19 FY 20 CAGR

In Patient Count
(Nos.)
27,771 36,311 39,030 18.6%

Day Care Patient Count

(Nos.)
5,196 19,674 23,728 113.7%

Out Patient Count

(Nos.)
2,22,970 2,96,197 3,25,596 20.8%

Surgeries Count 17,554 19,908 6.3%

19,835
ARPOB
(Rs.)
31,564 31,296 (1.8)%
30,457
Bed Capa city
(Nos.)
2,012 2,012 0.0%
2,012
Operational Beds
(Nos.)
1,150 1,102 2.2%
1,200
Occupancy
(Beds)
335 413 15.9%
450
Occupancy (%)
(operational beds)
29.0% 37.0% 14.5%

Average Length of Stay 38.0%

(without Daycare)
3.70 4.15 6.8%
4.22

Note: The operational bed count of 1,200 consi ders 36 operational be ds at Zynova-Sh alby Hospital, Mumbai, for which no other ope rational parameters are tra cked

4
 DISCLAIME
By attending the meeting/telephonic call where this presentation is made, you agree to be bound by the trailing restrictions regarding the informati on disclosed in this presentation. This
presentation has been prepared by Shalby Limited (the “Company”) solely for information purposes without any reg ard to any specific objectives, fin ancial situations or information needs of any
particular person and does not constitute a recomme ndation regarding the securities of the Company.

This presentation, its contents and any oral information provided in conne ction with this presentation are strictly confidential and should not be c opied, published or reproduced in any form or
distributed, disseminated or disclosed, in whole or part, by recipients directly or indirectly to any other person. Failure to comply with this restr iction may constitute a violation of applicable
securities laws. This presentation contains certain statements that are or may be forward-looking statements. These statements include descripti ons regarding the intent, belief or current
expectations of the Company or its directors and officers with respect to the results of operations and financial c ondition of the Company. These stat ements can be recognized by the use of
words such as “believes”, “expects,” “predicts”, “plans,” “will,” “estim ates,” “ projects,” “intends”, “aims”, “ anticipates”, “ targets” or othe r words of similar meaning. Such forward-looking
statements are not guarantees of future performance and involve risks and uncertainties, and a ctual results may differ from those in such forward-lo oking statements as a result of various fa
ctors and assumptions which the Company believes to be reasonable in light of its ope rating experience in recent years. The risks and
uncertainties relatin g to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our abil ity to manage growth and competition, among others. The
Company does not un dertake any obligation to revise or update any forward-looking statement that may be made from time to time by or on behalf of the Company. Any investment in securities
issued by the Company will a lso involve certain risks. There may be additional material risks that are currently not considered to be material or of
which the Company, its promoters, any pla cement agent, their respe ctive advisers or representatives are unaware. Against the background of these risks, uncertainties and other fa ctors,
viewers of this presentation are cautioned not to place undue relia nce on these forward-looking statements. The Company, its promoters, any pla cement agent, their respective
advisers or representatives assume no responsibility to update forward-looking sta tements or to adapt them to future events or
developments. Accordingly, any reliance you place on suc h forward-looking statements will be at your sole risk.

SHALBY LIMITED I Regd Off: Opp. Karnavati Club, S.G. Road, Ahmedabad – 380015, Gujarat, India. Phone: 079 4020 3000 Fax: +91 79 4020 3109 | Website: | CIN: L85110GJ2004PLC044667

www.shalby.org
 DISCLAIME
The information contained in this presentation has not been independently verified and have been solely prepared by the Company. The information in t his presentation is in summary form and
does not purport to be complete. No representation, warranty, guarantee or u ndertaking, express or implied, is or will be made as to, and no reliance sh ould be placed on, the accuracy,
completeness, correctness or fairne ss of the information, estimates, projections and opini ons contained in this presentation. Potential investo rs must make their own asse ssment of the relevance,
a ccuracy and adequa cy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropria te for such purpose.
Such information and opinions are in all events not current after the date of this presentation. Further, past performance of the Company is not necessaril y indicative of its future results. Any
opinions expressed in this presentation or the contents of this presentation are subject to change without notice. This presentation should not be construed a s legal, tax, investment or other advice.
Neither the Company or its promoters, nor any pla cement agent or their respective advisers or representatives shall have any
responsibility or liability wha tsoever (for negligence or otherwise) for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith. The information set
out herein may be subject to updating, completion, revision, verification
and amendment and such information may change materially. Neither the Company, its promoters, any pla cement agent, nor any of their respective advis ers or representatives is under
any obligation to update or keep current the information contained herein.

This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any advertisement, offer or invitation o r inducement to sell or issue, or any solicitation of
any offer to purchase or subscribe for, any securities of the Company by any pe rson whether by way of priva te placement or to the public, in any jurisdict ion, including in India, the United States,
Australia, Canada or Japan, nor shall it or any part of it or the fa ct of its distribution form the basis of, or be relied on in connection with, any investm ent decision or any contra ct or commitment
therefor. Investing in securities involves certain risks and potential investors should note that the value of the securities may go down or up. Accor dingly, potential investors should obtain and
must conduct their own investigation and analysis of the relevant information carefully before investing. Securities of the Company may not be offered or sold in the United States, except
pursuant to an applicable exemption from, or in a transa ction not subject to, the regist ration requirements under the United States Securities Act of 1933, as ame nded (the “ Securities Act”). By
reviewing this presentation, you are deemed to have represented and agreed that you and any person you represent are outside of the United States.

This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, invitation, an advertisement or an offer document un der the Companies Act, 2013, the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements) Re gulations, 2018, ea ch as amended, or any other applic able law in India. This presentation contains the Company’s
audited financial information as at and for the financial year ending March 31, 2020 and as at and for the six month period ended September 30, 2020. Inve stors should be aware that such
financial information may be subject to certain adj ustments during the course of audit/review and the audited/reviewed financial statements of the Company, when announced, may differ from
those contained in this presentation.

SHALBY LIMITED I Regd Off: Opp. Karnavati Club, S.G. Road, Ahmedabad – 380015, Gujarat, India. Phone: 079 4020 3000 Fax: +91 79 4020 3109 | Website: | CIN: L85110GJ2004PLC044667

www.shalby.org