Max India LimitedMax India Limited

I t P t tiInvestor Presentation

September 2009

1

BSE Scrip Code: 500271, NSE Ticker: MAX, Bloomberg: MAX:INwww.maxindia.com

MAX GROUP - OVERVIEW

2

www.maxindia.com

Max India—“In the Business of Life”

M lti b i t F d l d i

“ IN THE BUSINESS OF LIFE ”

Multi-business corporate Focused on people and service

Life Insurance Healthcare Clinical ResearchHealth Insurance*Life Insurance

Protecting LifeHealthcare

Caring for LifeClinical Research

Improving LifeHealth Insurance

Enhances Life

74:26 JV with New York Life

70% ownership; 8 facilities with 770 operational beds

100% owned; 120 active sites

74:26 JV with BUPA Finance Plc, UK*

Other Business Corporate Social Responsibility

Niche high barrier polymer films & Leather Finishing Foils

Focus on healthcare, children and the environment

VISION

3Note: * JV agreement signed on Sep 3, 2008; Statutory approvals in progress

VISION

“To be one of India’s most admired corporate for service excellence”

Key Investment Highlights

St hi t f t hi d t i f l b i1 Strong history of entrepreneurship and nurturing successful businesses1

Opportunity to participate in the strong growth potential in “the Business of Life”2

Superior brand recall with a proven track record of service excellence4

On a consistent growth trajectory3

Highly experienced management team5

3.5 Million Customers…18,000 Employees…95000 Agents…1,200 Doctors6 , p y g ,6

Track record of successful international business partnerships over last 20 years 7

Electronic Mobile Communication MedicalPharmaceuticals

Electronic

Component

Mobile

Telephony

Communication

ServicesPlating Chemicals

Medical

Transcription

Hutchison COMSAT ATOTECH

4

Financial Performance

Rs CroreFY 06 FY 07 FY 08 FY 09

Operating Revenue 1,008 1,820 3,244 4,508

Investment and

Oth I *103 174 367 383 Total Revenue Trend

Other Income*

Total Revenue 1,111 1,994 3,611 4,891

Expenses 1,206 2,065 3,671 5,224

4000

5000

6000

Profit / (Loss) after

Tax**(95) (71) (60) (333)

FY 06 FY 07 FY 08 FY 09

637 591 1 537 1 312

3611

48912000

3000

Net Worth 637 591 1,537 1,312

Loan Funds 382 559 552 347

Net Fixed Assets 447 628 718 930

11111994

0

1000

FY 06 FY 07 FY 08 FY 09

Treasury Corpus 487 285 1,261 413

Life Insurance

(AUM)886 1,835 3,575 5,405

5

Consistent track record of strong growth

*Investment & Other Income, tax expense and net loss of FY06 is adjusted for income from stake sale in Hutchison Essar amounting to Rs. 427.63 Crore.** Losses in FY09 have increased on account of significant expansion undertaken in the life insurance business.

Growth Story

(Rs Crore)

Delivered robust growth in

each business segment despite

a recessionary global macro-

economic backdrop

Consistent growth in insurance

business on the back of

investments in distribution, high

employee productivity and

product innovation

Strong growth in healthcare

through establishment of

credible brand focused on

high service quality

6

Shareholding Pattern

Others

Promoter�Group��Analjit�

%

Others21.1%

33.6%

IFC

FII�� Others24.7%

IFC4.4%

Warburg�Pincus16.2%

Market Capitalisation – USD 1 Billion

7

As on Jun 30, 2009

Max India to Foray into Health Insurance

Health�Insurance�Premium�Growth�in�India (Rs crores)

12351983

28011683

1974

3127

3824

5511235

FY06 FY07 FY08 FY09Private Public

JV Update

• Management team on board and key executives recruited

• Registration application filed with the regulatory authorities• Registration application filed with the regulatory authorities

• Detailed business plan under review

• Product development, marketing plan, IT and customer operation plans under review

8

•The company is geared for a launch shortly once the regulatory approvals are obtained

MAX NEW YORK LIFE INSURANCE

9

www.maxnewyorklife.com

Parentage

Max India

• India’s leading conglomerate• Successful track record of

New York Life

• Fortune100 company with a track record of 180 years

building businesses

Expertise

• AUM of $ 224 billion

Expertise

• Local perspective of the Indian market• Managing the regulatory framework

• Global perspective on the insurance business• Products and Actuarial

10

Opportunity to participate in

the strong growth potential…

The story so far...• Strong industry growth from FY 04 – FY 09 (CAGR – 29%)

L lif i i (4% f GDP)• Low life insurance penetration (4% of GDP)

• Product innovation and emergence of unit linked, health and pension products

• Aggressive distribution expansion by private players

• Shift in market share from LIC

11

• Shift in market share from LIC

• Increasing competition within the industry

Source: IRDA website

Market Position

Insurance Sales (Rs. Crore)

S. No. Company Individual New Business Premium (Rs. Cr) Individual Policies (‘000)

Q1 FY10 Q1 FY09 Growth (%) Q1 FY10 Q1 FY09 Growth (%)

1 ICICI Pru 545 1,174 -54% 360 614 -41%

2 SBI Life 493 472 4% 160 154 4%

3 Reliance Life 435 414 5% 407 288 41%

4 Bajaj Allianz 434 743 -42% 357 498 -28%

5 Max New York 384 425 -10% 258 299 -14%

6 Birla Sunlife 369 481 -23% 330 169 95%

7 HDFC Standard 360 432 -17% 152 161 -5%

8 Tata AIG 175 214 -18% 150 149 0%8 Tata AIG 175 214 18% 150 149 0%

9 MetLife 134 175 -23% 48 45 7%

10 Kotak Life 122 212 -42% 53 108 -51%

Others 588 408 44% 270 239 13%

Private Total 4,039 5,150 -22% 2,545 2,724 -7%

LIC 3,722 3,350 11% 5,905 4,817 23%

Grand Total 7,761 8,500 -9% 8,450 7,541 12%M k t Sh

12

Market Share

of Pvt. Players52.0% 60.6% 30.1% 36.1%

Source: IRDA website

MNYL Advantages

• Focus on highly Productive agency model• Agency contributed to around 69% of sales in Q1’FY10• Conservation ratio at 85% in Q1’FY10

Agency Distribution

Q

• Strong portfolio of traditional and ULIP products• Recent foray into health and retirement products

Comprehensive Product Portfolio

Recent foray into health and retirement products• Long tenor products with a young customer profile

• Advise based insurance sales

Best in class training

• Over 800 trainers on board

• Selected as a “Super brand” – brand awareness score improves to 82% from 67% y-o-yBrand Awareness

p p y y• Ranked 2nd in BT-Cirrus Newsmakers survey of most written about private life

insurance company in the media

Investment Performance

13

• Outlook money ranked MNYL#1 in Slow, Medium and Quick Fund category

N b i Q1 FY 10

Agency Benchmarking

New business Q1 FY 10( Agency)( Rs crore)

Agents**Premium per

agent (Rupees)Rank

Case rate per agent

Rank

277 95,000 10,284 2 0.69 1

327 150,000 7,266 3 0.68 2

131 80,000 5,547 5 0.47 3

286 70,000 12,721 1 0.41 4

222 165,000 4,464 6 0.40 5

269 220,000 3,813 9 0.31 6

79 45 000 5 875 4 0 25 779 45,000 5,875 4 0.25 7

300 276,000 3,528 10 0.23 8

77 70,000 3,974 8 0.22 9

43 30,000 4,167 7 0.17 10

180 198,000 2,964 12 0.13 11

54 55,000 3,410 11 0.12 12

14

, ,

Source: IRDA Journal, media reports and company’s internal estimates

*In terms of highest new business premium (Agency)**Average Agents

Our Focus… Protection Oriented,

Longer Tenor Life Insurance

PROPORTION OF Tenure Age of Insured

3318.6WHOLE LIFE

PROPORTION OF

POLICIES (%, by

number)

PRODUCT TYPE (Years)

g

(Years)

43

34

29

2.8TERM 26

ENDOWMENT 12.1 22

0.3DEFERRED

ANNUITY 15 42

7.7MONEY BACK

UNIT LINKED

38

3616

14

54.8

HEALTH 35133.7

15

22 35

MNYL Average MNYL AverageAs on June 30, 2009

Embedded Value 2008-09

Amount in Rs. Crore

44750

2,284

Other

55

312

190

Market

Value

Movement

750

9

392

1,517

Other

Adjustments

Other

Operating

Variance

Unwind of

discount

Value of

New

Business

New Capital

Injection

190 9

Cost

Overrun

954

1,316

Implied NBM is 21.0% on APE*

(21.8% in 2007-08)

954

362

767

Opening EV Closing EV

Denotes increase to EV

362

Net Worth

16

Denotes decrease to EV Value of Inforce business

*APE – Annualized First Year Premium adjusted for 10% of Single Premium and 50% of limited pay products

Key Assumptions - Embedded Value

E i A tiEconomic Assumptions

Particulars AssumptionsCash / Money Market / TB 5.50 %

G Secs 7.00 %

Corporate Bonds 8.50 %

Equities 13.50 %

Inflation 5.0 %

Risk Discount Rate 13.00 %

Tax rate 14.2 % (12.5 % + 10% surcharge + 3 % education cess)3 % education cess)

Sensitivity• For change in risk discount rate by 0.5%, the value of new business would change by 4.9%

Operating Assumptions• Operating assumptions like mortality, morbidity and lapses are based on our own experience and

validated with industry / reinsurers experience

17

• Expense assumptions are based on our own expense projection model. Basis our current

expansion strategy, our expense break even happens in year FY 11-12

Key Metricsor

es)

ores

)

(Rs

cro

(Rs

cro

cror

es)

(Rs

c

18* Offices for FY09 includes 133 offices dedicated to rural business

* *Conservation ratio = Renewal premium for the current period / (First Year + Renewal Premium for the previous period)

F h i di ib i

The Way Forward

• Multi distribution business model with special focus on building superior agency force • Segment agency to enhance productivity• Leverage Bancassurance and grow partnership distribution to increase scale

Focus on strengthening distribution

• Innovative concept product launched at tapping a huge low income customer base• Successful pilot completed in Allahabad and Andhra Pradesh

Innovation – Launch of Max Vijay

• Activated 30+ retail distributors in UP• Peerless signed up as a distribution partner – encouraging early results

Mi i t t

To launch Universal Life products• Minimum return guarantee• Express issuance of policies – no medical tests• Funding of premium post death of life insured• Persistency bonus in last five policy years• Low entry premiums• Low entry premiums

• Outsource various customer related processes like call centre, policy issuance etc.• Optimization of headcount to lead to savings in manpower cost

Initiatives to rationalize costs

19

Optimization of headcount to lead to savings in manpower cost• Rationalize operating costs through operational efficiencies

MAX HEALTHCARE

20

www.maxhealthcare.in

Healthcare Industry Perspective

Healthcare industry

expected to grow at a

15% CAGR till 2012 to

contribute 6.1% of

Healthcare

Industry 2012 –

US$ 78 6 billicontribute 6.1% of

GDP

KEY HIGHLIGHTS

Re en e generated b pri ate hospitals c rrentl estimated at US$ 15 5 billion likel to increase to US$ 35 9 billion b

US$ 78.6 billion

• Revenue generated by private hospitals currently estimated at US$ 15.5 billion, likely to increase to US$ 35.9 billion by

2012

• Industry expected to add 1 million beds by 2012 – private sector to contribute 89% of these beds at an investment of

US$ 70 billion

90 % of private healthcare in unorganized sector but contribution of organized players is rising rapidly

21Source: FICCI & E&Y Report, 2007

• 90 % of private healthcare in unorganized sector, but contribution of organized players is rising rapidly

• Emergence of PPP model in healthcare delivery

Key drivers for growth

Comparative medical cost

32

100

48

65

40

60

80

100

US$

’000

Comparative�medical�cost

8.5 7 4.59.8

24

6.4

19.218

0

20

Open�Heart Knee�replacement Lap�Cholcystectomy�

Obesity�Surgery

Ind������UK������US Ind����UK������US Ind�����Uk������US Ind�����Uk� �����US

Rising health insurance penetration will make healthcare affordable

Cost differentials provide a huge untapped market for medical tourism related business opportunities

os. m

illio

n)(n

o

22Source: FICCI & E&Y Report, 2007, IRDA, B&K report, 2009, Crisil

Low healthcare spend presents opportunities for growth and expansion

Growing trend of lifestyle diseases need effective and continuing medical attention

Tertiary CareTertiary Care • Heart and Vascular

MHC – Model

Tertiary CareTertiary Care- Max Heart and Vascular Institute

- Max Super Specialty Hospital

• Neurosciences• Joint Replacement and

Orthopedics• Aesthetics and Reconstructive

surgery

Secondary CareSecondary CareMax Hospitals – 4

su ge y• Oncology

• Surgery and inpatient facilities• Mother and Child• High end diagnostics: MRI CTp

Specialty Centre – 2

P i CP i C

• High-end diagnostics: MRI, CT• Doctor consultation

Primary CarePrimary CareClinics /

Implants – 14

• Specialist doctor consult• Basic diagnostics like pathology

collection

23

Presence across the healthcare delivery value chain

Shareholding Pattern and Key Highlight

Factsheet

Healthcare facilities 8

Physicians 1200*Physicians 1200

Other support staff 3100

Patient base Approx. 790,000

Patient transactions Over 175,000 pm

Beds 770

ICU Beds 230

Operation Theatres 20

Cathlabs 3

MRI 4MRIs 4

CTs 4

B h h i h i l NABH di d

24*Includes over 600 physicians on Rolls

Both the tertiary care hospitals are NABH accreditedLab facilities at Max Super Specialty Hospital are NABL accredited

Key Strengths

• State-of-the-art infrastructure and facilities

Comprehensive and integrated healthcare services

Well established brand name throughout India• Has always adopted a quality conscious and patient centric approach• Has consistently improved its operational and clinical efficiency• Won numerous accolades including accreditations by the NABH and NABL• Extended range of services to offer primary secondary tertiary and quaternary care

Well established brand name throughout India

• Extended range of services to offer primary, secondary, tertiary and quaternary care

• Team of 1243 doctors complemented by 1569 nurses and 1472 other trained medical personnel and support staff *

Network of highly respected and leading specialists

personnel and support staff

• Centre's of excellence in cardiac, orthopedics and joint replacement, neurosciences, pediatrics , obstetrics & gynecology and aesthetic & reconstructive surgery

Leadership in key super-specialties in tertiary care

, obstetrics & gynecology and aesthetic & reconstructive surgery• Organ transplant, oncology, cord blood banking, stem cell research to be added

• DNB (Diplomate of National Board) & fellowship programsExtensive emphasis on medical training and education

25

• High quality nursing and paramedic care supported by nursing and paramedic college

*As of June 30, 2009

Key metricss)

(Rs

cro

res

s. 0

00’s

)(N

ios

26*Average revenue per occupied bed day has been calculated on inpatient revenue

Max Healthcare – Second Phase of Expansion

Max Hospital - Dehradun Max Hospital - Mohali Max Hospital - Bhatinda

• Multispecialty services

• Around 150 beds

• Specialities include Emergency and Trauma care,

• Tertiary Care Facility

• Around 300 beds

• Specialities include

• Tertiary Care Facility

• Around 300 beds

• Specialities include e N

CR

p g yNon-invasive and Invasive cardiology, Cardio-thoracic surgery, Joint replacement and Orthopaedics, Minimally Invasive Surgery, Neurosciences and related support services.

pOncology, Cardiac Services & Trauma Services

pOncology, Cardiac Services

Ou

tsid

Oct 2009 Feb 2010 Jan 2011 Sep 2011 Q3, FY 2011 FY 2014

Max Balaji Hospital

Patparganj

Max Hospital

South Block Saket

Max Hospital

Shalimar Bagh

Max Hospital

Greater Noida

• Tertiary Care Facility •Tertiary Care Facility • Multispecialty services • Multispecialty services

• Around 260 beds

• Specialities include Oncology, Cardiac Care, Orthopaedics, Neurosciences and Critical

• Around 90 beds

• Specialities include Oncology

• Around 300 beds

• Specialities include Interventional Cardiology, Cardio thoracic surgeries, Neurosciences, Trauma &

• Around 300 beds

• Specialities include neurosciences, trauma and critical care, urology, interventional cardiology

NC

R

2727

care critical care.gy

and cardio thoracic

Land already in place for the Second Phase of expansion

Current Funding Structure

EquityCapital

R 376 C

� Max India

� Current – Rs. 166 Crore

� Warburg Pincus – Rs. 140 Crore

� IFC, Washington – Rs. 50 Crore

Rs. 376 Crore � Other Foreign Investors – Rs. 20 Crore

Project Cost

Rs. 981Crore

Preference

Capital

Rs 250 Crore

� IFC, Washington

Rs. 250 Crore

� Indian Banks and Financial

Institutions� Current – Rs. 297 Crore� Future (tied-up) – Rs. 58 Crore

DebtFunds

Rs. 355 Crore

28

Rs. 355 Crore

MAX NEEMAN MEDICAL INTERNATIONAL

29

www.neeman-medical.com

Indian Clinical Research Industry

Indian CRO industry

is expected to leap

into a superior

growth trajectory in

the next few years

Key Highlights

• Huge patient population base with therapeutic diversity

Cost arbitrage• Cost arbitrage

• Huge talent pool

• Data processing infrastructure for bio-informatics

As per FICCI - Ernst and Young Survey Report 2008 and market information

• Favorable patent regulations to catalyze exponential growth and improving

MNMI—Contract Research Organization

Overview

• Full service contract research organization (CRO) with focus on Phase II, III & IV trails

• Service offerings include: Project management, Site management, Data management, including, bio-

t ti ti d t iti it i i d l h i t

Overview

statistics and report writing, monitoring services and supply chain management

• Confirmed order book of Rs 40 crore

• Business Development efforts focused on medium/small-sized biotech & pharma companies

Key Highlights

• Operational since 2001 and is profitable

Marquee Clients

•Revenue for FY09 over Rs. 15 crore, growth of 35 % yoy

•Patient retention rate at 98%

•4 successful US FDA GCP audits4 successful US FDA GCP audits

•Database of over 950 GCP/ICH trained investigators

•90% of employees out of 250 are physicians

31

•173 active sites across 22 cities

MAX SPECIALITY PRODUCTS

32

www.maxindia.com

Global BOPP Industry(K

TA

)

KEY DRIVERS• Global flexible packaging industry – US$ 50 bn, of which BOPP Films contribute70%

• Growth of flexible packaging Industry ~ 15% in India & 7 to 8% Globally

• Competitive advantage of BOPP films over other plastics and traditional products

• Shift from PET to BOPP. (Indian BOPP:PET products ratio around 1:2 against 3:1 globally)

• BOPP films in strong demand from consumer goods industries

• Organized retail and changing urban life styles to further expand demand for BOPP films

33

• Competitive cost advantage for export markets

Key Differentiators

CommoditySpeciality

(Preferred)

Metallised

FilmsCoated Films Foils

End Use

Packaging,

Industrial,

Textiles

Packaging,

Lamination

Packaging,

Lamination,

Industrial,

Packaging,

Industrial

Lifestyle,

Apparels

M S i lit P d t i h th k iOur Focus

Max Speciality Products is much more than packaging…

� Manufacturer of niche(high margin)and high barrier speciality polymer films

� Pioneer in introduction of value added products /technology in India

� Long term relationship with blue chip customers

34

Key Highlights

Consistent Track RecordConsistent Track RecordConsistent Track RecordConsistent Track Record

of Strong Performanceof Strong Performance……

(Rs

cror

es)

KEY HIGHLIGHTS

• BOPP lines of 29,000 TPA running at 100% utilization

• Fourth BOPP line with capacity of 20,000 TPA, expected to be operational by 2010 end

• Third thermal line planned with a capacity of 10,000 KSM

35

• Leather finishing foil business to more than triple its capacity to 5000 KSM by Q2’FY10

Thank You

36

Max India – Management Team

Mr. Analjit Singh

Chairman & Managing

Director

Mr. Analjit Singh has been the driving force behind Max Group’s sustained growth and success since the early80’s. Mr. Singh a prominent industrialist is an alumnus of Doon School; University of Delhi, and the GraduateSchool of Management, Boston University

Mr. C. V. Raghu

Director – Legal &

Regulatory

Mr. Raghu brings with him a rich and varied experience of 22 years, of which, 14 years have been spent withAmerican Express Bank. Prior to that, he has worked with Hindustan Lever Limited and CII. He holds a BachelorsDegree in Law from Faculty of Law, Delhi University.

M M hit T l Mr Talwar brings rich and varied experience of 28 years with The Oberoi hotels Bank of Nova Scotia GrindlaysMr. Mohit Talwar

Director – Corporate

Development

Mr. Talwar brings rich and varied experience of 28 years with The Oberoi hotels, Bank of Nova Scotia, Grindlays& Standard Chartered. In his last assignment with Standard Chartered he was responsible for developingstrategy, revenue & economic profit across products. Mr. Talwar is a post-graduate in Arts and HospitalityManagement.

Mr P Dwarakanath M D k th b i i h d i d i f 37 i il f GSK Gl S ithKli CMr. P. Dwarakanath

Director - Group Human

Capital

Mr. Dwarakanath brings rich and varied experience of 37 years primarily from GSK GlaxoSmithKline ConsumerHealthcare and is currently the non Executive Director of GSK. He has done his Post Graduate diploma inPersonnel Management and Industrial Relations, B.Sc and Bachelor of Law.

M S j th R tMs. Sujatha Ratnam

Chief Financial Controller

Ms. Ratnam brings with her over 15 years of rich and varied experience with Jubilant Organosys and Tata Motorsand has expertise in the field of financial restructuring and fund raising. She is a Chartered Accountant.

Mr. V KrishnanMr. V. Krishnan has more than 18 years of rich experience in Corporate Regulatory and Compliance matters andhas been closely involved in establishing joint ventures mergers & acquisitions and business restructuring of Max

37

Company Secretaryhas been closely involved in establishing joint ventures, mergers & acquisitions and business restructuring of MaxGroup. He is a member of the Institute of Company Secretaries of India.

MNYL – Management Team

Mr. Rajesh Sud –

Managing Director

Mr. Sud, a founder member, has been instrumental in establishing MNYL’s distribution footprint across India. Today

MNYLs Agency model is recognized as “best-in-class”. Prior to joining MNYL, he was the CEO & Managing Director of

Esanda Finance Ltd (a financial services subsidiary of ANZ Grindlays Bank)and CEO

Esanda Finance Ltd (a financial services subsidiary of ANZ Grindlays Bank)

Mr. Rajit Mehta –Mr. Mehta, a founder member, has led and built the HR function of MNYL and provided overall HR direction in line with

business strategy. He has also played a significant role in managing change / transition agendas both at a functional

Chief Operating

Officer

gy p y g g g g g

and organizational level while facilitating strategic initiatives. Prior to joining MNYL, he was Director - Human Resources

at Bank of America, India

Mr. John Poole

Chief Actuary

Mr. Poole, is both Chief Actuary and Appointed Actuary for MNYL. He has been instrumental in building MNYLs

actuarial capability and implementing best practices. Prior to this assignment, he worked with AMP in various key

management positions including CFO and Actuary

Mr. Sunil Kakar

Senior Director &

Mr. Kakar joined MNYL in March 2001 and is in charge of Finance, Accounts, Investments and Risk Management.

Under his leadership investment portfolio continues to generate top quartile returns. Prior to joining MNYL, Sunil was

38

Chief Financial Officer with Bank of America, India as Vice President (CFO)

Road Map to Becoming India’s Most Admired

Life Insurance Company

Key Public MessagesKey Public MessagesKey Public MessagesKey Public Messages

� A trusted life insurance specialist� Customer centric� Financially responsible and strong� A great place to work� An admired member of the community

VISIONVISION Become the most admired Life Insurance Company in India

MISSIONMISSION

� Part of top quartile newLife Insurance Companies� National Player� Brand of FIRST choice

� An admired member of the community

KEY KEY WHAT –Comprehensive suite ofproducts, competitive pricing, extensive distribution, persistency customer service excellence

� Employer of Choice� Principal of Choice for Agents

Key DifferentiatorsKey Differentiators

� Financial Strength & Security

� Quality of agents

� Flexible ProductsOBJECTIVESOBJECTIVES

STRATEGIESSTRATEGIES

persistency, customer service excellence,profitable portfolios

HOW –TalentedPeople, Professional & Productive Agents, Performance Metrics, Leverage Technology, Teamwork, Customer Centric Innovative Distribution and Marketing

e b e oduc s

� Service Excellence

� Fair Terms of Business

Customer Centric, Innovative Distribution and Marketing

INITIATIVESINITIATIVES What-When-Who-How-Cost linkage plans at Departmental and Individual levels

VALUES & BELIEFS OPERATING PRINCIPLES METRICS & PERFORMANCE

� Excellence� Honesty� Knowledge� Caring� Integrity

VALUES & BELIEFSSTANDARDS MGMT PROCESS� Customer comes first

� International quality standards� Do it right the first time� Fact based decisions� Bias for result oriented action� Financial strength & discipline

� Input� Output� External� Internal

Ab l t

� GMPR Ratings� TEC/TTR – Templates� Primary, Shared and

ContributoryB l d d

39

Integrity� Teamwork

Financial strength & discipline� Direct and open communication� Respect Max & NYLI values & parentage� Fun at work

� Absolute� Ratios

� Balanced scorecard� Core, Functional and

Leadership Competencies

MNYL – Key Highlights

Key Business Drivers Unit Quarter Ended Y-o-Y

Growth

Year Ended Y-o-Y

Growth Jun-09 Jun-08 Mar-09 Mar-08

a) Sales Value (Annualized first year premium) Rs. Crore 441 541 -18% 2,096 1,676 25%

b) Average case size Rs. 22,285 22,145 1% 19,172 21,923 -13%

c) Case rate per agent per month No. 0.54 1.16 -53% 1.05 1.46 -28%

d) Number of agents No. 94,594 46,851 102% 84,355 36,896 129%

e) Net agents added No. 10,239 9,955 47,459 11,848

f) Conservation ratio* % 85% 89% 82% 83%

g) Gross written premium income Rs. Crore

First year premium 389 424 -8% 1,594 1,326 20%

Renewal premium 677 369 83% 2,014 1,117 80%

Single premium 52 72 -28% 249 272 -8%

Total 1,118 865 29% 3,857 2,715 42%

h) Paid up Capital Rs. Crore 1,782 1,232 45% 1,782 1,032 73%

i) Individual Policies in force No. 2,661,592 1,985,626 34% 2,578,476 1,750,725 47%

40* Conservation Ratio = Renewal Premium for the current period / (First Year Renewal Premium for the previous period)

j) Sum insured in force Rs. Crore 102,963 77,650 33% 93,593 66,620 40%

MHC – Management Team

Dr. Pervez Ahmed

CEO and Managing

Director

Dr. Ahmed has been an active participant in healthcare related fields especially development of standards of critical

care medicine in New York. Since 1977 he has been involved in academic Medicine at SUNY, Downstate. He has

also been involved in many healthcare activities in India dating back to 1980. Dr. Pervez Ahmed, MBBS from AFMC,

Pune, has completed Residency in Internal Medicine and Fellow-ship in Cardiology in New York. He is Board certified

in Internal and Cardiovascular disease and a Certified Medical Director.

Mr. Arvind Kakar

Vice President Finance

Mr. Kakar is a Chartered Accountant with over 18 years of experience in service industries and having a high focus in

the areas of financial services and healthcare. He has been associated with the Max group since 2000.

Mr. Sanjay RaiMr. Rai brings with him more than 28 years experience in Sales & Marketing in service and manufacturing industries.

H h li k d ith Th Ob i d ITC Li it d H l d d i l h l t MDirector Marketing &

Customer Management

He has earlier worked with The Oberoi group and ITC Limited. He leads and manages various sales channels at Max

Healthcare and is also responsible for Branding, Customer Relationship Management and Direct marketing, PR

function and for service excellence. He is an graduate in Economics from Mumbai University,

Mr. Surajit Banerjee

Di t H

Mr. Banerjee has over 23 years experience in Human resource and worked with reputed organizations like Spice Jet,

Hi d t L E t I di H t l R kitt B k i Li it d Bh ti C ll l t H i t d t i lDirector Human

Resource

Hindustan Lever, East India Hotels, Reckitt Bencksier Limited, Bharti Cellular etc. He is an post graduate in personnel

management and industrial relations from XLRI.

Dr. D. P. Saraswat

Dr. Saraswat has rich and varied experience of 36 years including 22 years in the Indian Army where he held Lt. Col.

rank. Thereafter he continued his career with Manipal Hospital as COO & Medical Director. He also held the position

f H d & P f D t f H it l Ad i i t ti i M i l U i it H i M B B S f S N M di l C llRegional Director of Head & Professor Dept. of Hospital Administration in Manipal University. He is M.B.B.S from S. N. Medical College,

Agra and MHA from A F M C, Pune.

Dr. Dilpreet Brar

Regional Director

Dr. Brar was associated with the Indraprastha Apollo Hospitals and Hero Honda group of companies prior to joining

Max Healthcare in 2002. She is responsible for business operations of Saket, Panchsheel and Gurgaon Hospitals. Dr.

Brar is a graduate from Govt Medical College Patiala She secured a post graduate diploma in hospital management

41

Regional Director Brar is a graduate from Govt. Medical College, Patiala. She secured a post graduate diploma in hospital management,

and completed a certificate course in Health Insurance from Indraprastha Apollo hospitals, New Delhi.

MHC – Key Physicians

Padma Shri Dr. Rustom Phiroze Soonawala

MD, FRCS, FRCOG

Chairman, Obstetrics & Gynaecology

� Eminent and Internationally renowned Obstetrician & Gynaecologist.

� Former President of the Federation of Obstetricians and Gynaecologists

Dr. Praveen Chandra

MD, DM,FAPSIC, FACC, FSCAI, FESC

Director – Cardiac Cath Lab

� Internationally Renowned Cardiologist.

� First to use new devices like Rotarex,Kensey Nash DPD in the country.

Dr S K S MaryaDr. S.K.S. Marya

M.S., DNB, Mch, FICS

Director – Max Institute of Orthopedics & Joint

Replacement

� Renowned Joint Replacement Surgeon having 30 years experience.

� Pioneered bilateral Hip and Knee Joint replacement.

� Author and teacher par excellence.

Dr. Ajaya Nand Jha

MS, FRCS

Director – Max Institute of Neurosciences

� Renowned Neurosurgeon with rich and varied experience including stints with

Manchester Royal Infirmary, P.D. Hinduja National Hospital, Indraprastha Apollo

Hospital.

� First to use image guided Neurosurgery in the country.

Fi t t d di t d X k if (R di ) d i t ti MR ith iDirector Max Institute of Neurosciences � First to use dedicated X-knife (Radiosurgery) and intra-operative MR with image

guidance for Brain Tumour Surgery.

Dr. Anurag Krishna

MS, MCh., FAMS

� Over 20 years of experience in Paediatric surgery including complex congenital

malformations

P bli h d 50 i tifi i l di ti l d i t ti l j l

42

Director, Paediatrics and Paediatric Surgery � Published over 50 scientific papers in leading national and international journals

� Has served as Member of the Board of Management of Sir Ganga Ram Hospital.

MHC – Vision / Mission

B ild T tPASSIONK Diff ti t

VISION

Deliver international class healthcare with a total service focus, by creating an institution committed to the highest standards of medical & service excellence, patient care, scientific knowledge, research and medical education.

• Create exceptional standards of Medical & Service Excellence• Care provider of FIRST CHOICE• Principal Choice for Physicians

Build TrustPASSIONKey Differentiators

� Focused NCR centric delivery – for operational excellence

� Leadership in 5 super-specialties in tertiary care

-‘Star’ physicians supported by a group of high quality physicians

� Ethics

� Memorable brand experience

- ‘Star’ and quality physiciansMISSION

GOALS • Profitable without profiteering.• Seamless linkage between secondary and tertiary care.

• Principal Choice for Physicians• Ethical Practices • Create International Centre of Excellence for select Super Specialties.• Safety – Patient, Customer, Staff

Star and quality physicians

- Infrastructure and equipment

- No surprises – cost of care, pricing, medication

- Signage

- Look – feel – smell - touch

� High quality nursing and paramedic care supportedby nursing

and paramedic college

KEY

OBJECTIVES

STRATEGIES

WHAT –Medical USP’s ; Best in class ; Comprehensive care ; Convenience & accessibility ; Seamless service ; Patient records ; Consistent and customised care ; Service excellence ; Preventive health ; Caring place to work.

HOW –Train train train ; Partnership with Medical community ; Principalchoicefor physicians ; Never ending focus on medical and service excellence ; Build lasting customer relationships ;No franchising.

• WHAT- HOW - WHEN - COST - LINKAGE

� Technology and IT

VALUES & BELIEFS OPERATING PRINCIPLESMETRICS &

STANDARDSPERFORMANCEMGMT PROCESS

INITIATIVES

WHAT- HOW - WHEN - COST - LINKAGE• Shared responsibility with single accountability.• Unique approach through: - International benchmarking.- Walk the Talk - IT Capability- Medical – Management Alignment.- Rehearse rehearse- Cost Efficiency- Train train train. - Mystery customers- Attrition Management

Key Public Messages

� Medical Excellence

� Service Excellence – Total Experience

� In your community - near you STANDARDS MGMT PROCESS

• Competence rating• Potential analysis• PSC model• Balanced scorecard• Performance / Risk linked

reward.

• Caring • Excellence• Integrity• - Personal• - Professional• Accountability• Openness/Transparency

• Courtesy & Caring always• Customer comes first• Do it right first time• International image standards• Direct & open communications • Create trust• Compliance• Fun at work

• JCIA Accreditation • ISO 9001 : 2000• Integrated Management System• Credentialing / Grant ofprivileges• Employee productivity• Employee Engagement survey• Service Dashboard - Sparsh

In your community near you

� High-end tertiary care in Private

� sector

� Comprehensiveness

� Referral system – National &

� International

� Value for money

43

p p y• Teamwork• Win-win partnerships

• Fun at work• Reward & Recognition

Service Dashboard - Sparsh• NABH/NABL Accreditation• Adverse event Measurement.

� Corporate Social Responsibility

MHC – Accreditations and Awards

Express Healthcare Excellence

Awards(2007 – 08)

“Innovative Marketing Practices”ISO 14001:2004 at Pitampura

ISO 9001:2008 Recertification at

Max Heart & Vascular Institute

First in North India to get NABH for MHVI & MSSH

Max Heart & Vascular Institute,

Noida, Pitampura, Panchsheel

Park &Home Office

“Best Managed Healthcare Program (Health Insurance/TPA)”

44

Max Healthcare (MHC)

Quarter Ended G h Year Ended G hKey Business DriversUnit

Quarter Ended Growth(%)

Year Ended Growth(%)Jun-09 Jun-08 Mar-09 Mar-08

a) Revenue Rs. Crore

Inpatient Revenue 91.3 78.1 17% 329.0 301.5 9%

Outpatient Revenue 26.4 21.4 23% 93.6 71.0 32%

Total 117.7 99.5 18% 422.6 372.5 13%

b) Profitability

Contribution Margin Rs. Crore 66.9 54.5 23% 238.9 197.7 21%

Contribution (%) % 56.8% 54.8% 56.5% 53.1%

EBITDA R C 6 4 5 1 25% 28 7 19 6 46%EBITDA Rs. Crore 6.4 5.1 25% 28.7 19.6 46%

EBITDA (%) % 5.4% 5.1% 6.8% 5.3%

Cash Profit Rs. Crore (1.1) (2.8) 61% 1.0 (11.8) 108%

c) Patient Transactions No.

Number of Procedures- Cardiac Care 2,124 1,866 14% 7,437 7,648 -3%

- Orthopaedics 585 561 4% 2,153 2,004 7%

- Neurosciences 239 204 17% 874 657 33%

- Obstetrics & Gynaecology 1,305 1,102 18% 4,861 4,171 17%

Others 2 902 2 471 17% 9 669 8 214 18%- Others 2,902 2,471 17% 9,669 8,214 18%

Medical Admissions 6,804 5,869 16% 26,109 23,838 10%

Outpatient Registrations 513,181 459,863 12% 1,899,880 1,592,804 19%

d) Average Operational Beds No. 727 700 4% 712 662 8%

e) Average Occupancy % 69.4% 61.5% 65.1% 65.8%

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f) Average Length of Stay No. 3.3 3.2 3.3 3.4

g) Average Revenue per Occupied Bed Day Rs. 19,873 19,930 19,433 18,914 3%

Note: The results presented above are for Max Healthcare’s network of hospital

MHC Tertiary Care Facility, Saket

[South Delhi]

MAX HEART & VASCULAR INSTITUTE(December 2004)

� 200 patient beds

MAX SUPER SPECIALITY HOSPITAL

(May 2006)

191 b d (i l di 63 i i l b d )� 200 patient beds

� 3 OTs, 2 Cardiac Catheterization Labs

� Post Surgery Critical Care Unit

� High Dependency Unit

� Apex and Advanced Coronary Care

� Exclusive well equipped ‘Observation Bay’ and

� 191 beds (including 63 critical care beds)

� 7 OTs, 20 Consult Chambers

� Tower Specialties – Orthopaedics, Neuro

Sciences, Obstetrics & Gynaecology, Paediatrics� Exclusive well equipped Observation Bay and

‘Post Cath. Recovery’

� Nuclear Diagnostic Services with Variable Angle

Dual Head Gamma Camera

� Centralized Emergency Command with

Advanced Cardiac Life Support Ambulances and

and Aesthetic & Reconstructive Surgery

� Brain Suite (first in Asia) and Intra Operative MRI

� DSA Lab (for Neuro Sciences)

� Emergency Services

46

Advanced Cardiac Life Support Ambulances and

Air Evacuation Service

� High-end General Surgery

� High end Radiology facilities with 64 slice Cardiac

CT

MHC Secondary Care Facility

[ Delhi ]

PITAMPURA

(February 2002)

(N th D lhi)

PATPARGANJ

(May 2005)

(E t D lhi)(North Delhi)

� 90 inpatient beds

� 2 OTs

� Lithotripsy

M h d hild

(East Delhi)

� 154 inpatient beds

� 3 OTs

� Mother and child care

� Mother and child care

� Non-invasive cardiology

� Plastic and reconstructive

surgery

� Physiotherapy

� Orthopaedics

� General surgery

� Critical care including dialysis

� Non-invasive cardiology (incl.

cardiac catheterization lab)

47

Physiotherapy

� Full range diagnostics

� PHP, OPD and Dentistry

cardiac catheterization lab)

� ENT, ophthalmology

� Other allied specialties

MHC Secondary Care Facility

[ Suburb of Delhi ]

NOIDA

(August 2002)

GURGAON

(J l 2007) (August 2002)

� 33 inpatient beds

� 2 OTs

� Mother and child care

� Non invasive cardiology

(July 2007)

� 102 inpatient beds

� 3 OTs

� Ophthalmology (anterior and posterior)

W d hild (i l di i f tilit ) � Non-invasive cardiology

� Laparoscopic surgery

� Orthopaedics

� ENT, ophthalmology

� Urology and nephrology

� Woman and child (including infertility)

� Medical & surgical intensive care

� Orthopaedics

� Nephrology and urology

� Aesthetic and reconstructive surgeries

48

gy p gy

� Full range diagnostics

� PHP, OPD and Dentistry

g

� General and minimally invasive surgeries

� PHP and OPD

MHC Speciality Centres – Panchsheel

[South Delhi]

OPTHALMOLOGY AND DENTAL CARE

(November 2005)

� Lasik OPD and diagnostics

SPECIALIST CONSULTS AND

HIGH-END DIAGNOSTICS

(August 2006)

� GP and specialist consults� Lasik, OPD and diagnostics

� Dental – 3 chambers

� Support services and offices

GP and specialist consults

� Diagnostics

� Neurology (EEG and EMG)

� Preventive health and chronic care

� Physiotherapy

49

y py

� Minor procedures and emergencies

� IVF

U it G th G th

MSP – Performance Snapshot

Key Business Drivers

Unit Quarter ended Growth

(%)Year ended Growth

(%)

Jun-09 Jun-08 Mar-09 Mar-08

a) Sales Quantity – BOPP Tons 7,030 6,809 3% 28,503 23,929 19%

b) Revenue Rs. Crore 79.8 97.8 -18% 370.4 306.0 21%

c) Profitability:

Contribution Margin* Rs. Crore 30.7 34.4 -11% 136.8 119.9 14%

% 38.5% 35.2% 36.9% 39.2%

EBITDA Rs. Crore 10.7 13.9 -23% 51.4 49.6 4%

% 13.4% 14.2% 13.9% 16.2%

PBT Rs. Crore 4.8 7.1 -32% 24.8 24.5 1%

%

50

% 6.0% 7.3% 6.7% 8.0%

Disclaimer

This presentation has been prepared by Max India Limited (the “Company”). No representation or warranty, express or implied, is made and nop p p y ( p y ) p y, p p ,

reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in the presentation. The past

performance is not indicative of future results. Neither the Company nor any of its affiliates, advisers or representatives accepts liability

whatsoever for any loss howsoever arising from any information presented or contained in the presentation. The information presented or

contained in these materials is subject to change without notice and its accuracy is not guaranteed.

The presentation may also contain statements that are forward looking. These statements are based on current expectations and assumptions

that are subject to risks and uncertainties. Actual results could differ materially from our expectations and assumptions. We do not undertake

any responsibility to update any forward looking statements nor should this be constituted as a guidance of future performance.

This presentation does not constitute a prospectus or offering memorandum or an offer to acquire any securities and is not intended to provideThis presentation does not constitute a prospectus or offering memorandum or an offer to acquire any securities and is not intended to provide

the basis for evaluation of the securities. Neither this presentation nor any other documentation or information (or any part thereof) delivered or

supplied under or in relation to the securities shall be deemed to constitute an offer of or an invitation.

No person is authorised to give any information or to make any representation not contained in and not consistent with this presentation and, if

i d h i f ti t ti t t b li d h i b th i d b b h lf f th C fgiven or made, such information or representation must not be relied upon as having been authorised by or on behalf of the Company any of

its affiliates, advisers or representatives.

The Company’s Securities have not been and are not intended to be registered under the United States Securities Act of 1993, as amended (the

“Securities Act”), or any State Securities Law and unless so registered may not be offered or sold within the United States or to, or for the

benefit of, U.S. Persons (as defined in Regulations S under the Securities Act) except pursuant to an exemption from, or in a transaction not

subject to, the registration requirements of the Securities Act and the applicable State Securities Laws.

This presentation is highly confidential, and is solely for your information and may not be copied, reproduced or distributed to any other

person in any manner. Unauthorized copying, reproduction, or distribution of any of the presentation into the U.S. or to any “U.S. persons” (as

51

defined in Regulation S under the Securities Act) or other third parties ( including journalists) could prejudice, any potential future offering of

shares by the Company. You agree to keep the contents of this presentation and these materials confidential.

MAX INDIA LTD.Max House, Okhla, New Delhi – 110 020

Phone: +91 11 26933601-10 Fax: +91 11 26933619

Website: www maxindia com

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Website: www.maxindia.com