Max India Limited Investor Presentation - February 2021
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Max India Limited
Investor Presentation
February 2021
www.maxindia.com
Max India has invested Rs 400 Cr in Antara and has Rs 500 Cr of Liquid and other assets
(based on invested capital#)
Senior Living – Residences for Seniors New Businesses (Rs. 15 Cr) Other Assets (Rs. 500 Cr)
Invested Capital* (Rs 383 Cr) (Care at Home, Care Home and MedCare)
Antara 1.0 - Dehradun (Asset Heavy) Max Towers (61k sq ft) – Rs 100 Cr
Invested Capital (Rs 187 Cr) Rs Cr • Care at Home (Home care) –
Pilot launched in Q1FY21 • Annual Rental Income of Rs 6 Cr
Investment** 337 expected on fully leased out basis
Less: Impairment (150) • Care Homes (Assisted Living) –
Fair Value (Unsold inventory of 63 units, 187 Pilots in Gurgaon & Delhi. Cash^ – Rs 407 Cr
Ownership of Club House & Usable FSI)
Gurgaon launched in Q2FY21 and • Antara Growth Capital – Rs. 300 Cr.
Antara 2.0 - Growth (Asset Light) Delhi launched in Q3FY21 (to be deployed over next 3-4 years)
Invested Capital (Rs 195 Cr) • MedCare – Pilot launched in • Capital reduction – Rs 92 Cr. (1.08 Cr
Residences for Seniors – Noida launched in Jan’20 shares at Rs 85 per share) is reserved
Q3FY21 for Capital reduction
Investment in Integrated campus at Greater Noida for
residences for seniors, care & memory care homes • Invested Capital (Rs 15 Cr)
* Invested upto Dec’20 ** Equity – Rs 307 Cr; ICD – Rs 30 Cr ^ As at Dec’20 end; includes unrealized gain on MF of Rs 17 Cr
# Adjusted for impairment of Rs. 150 Cr
2
Overall Structure
The Antara story: Executive Summary
Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model
Residences for Seniors
Assisted Care Services
Overall summary: Creating shareholder value over next 5 years
3
Executive Summary
1. Senior care is a mega trend in India with USD 10-12 Bn market across value pools. There is a large unmet need in the target segment which
is currently underserved. Proof of concept exists globally, with emerging models in India.
2. Antara, a Max Group Company is at a vantage position to shape and capture a large share in the emerging market given its unique lineage
of healthcare, insurance, hospitality and real estate.
3. Antara will target 4 Mn of elderly population belonging to the affluent / mass affluent segment in 3 clusters i.e. North (NCR), West (Mumbai
& Pune) and South (Bangalore). The initial focus will be on 1-2% of the above with household income of 15 lakhs plus in these clusters over
the next 5 years taking into account premium price point, social and other considerations.
4. Our first operationalised community in Dehradun has set a new benchmark and has established the Antara brand in the senior care space.
The second community launched in Noida has also been receiving an encouraging response from the market.
5. To capitalize on the senior care mega trend, Antara 2.0 strategy entails focus towards Assisted Care Services led growth model.
6. Assisted Care Services shall comprise Care and Memory Care Homes for seniors, providing similar Health Care services at Home as well.
Antara will also foster partnerships / alliances to offer its customers senior specific products/services.
7. Care / Memory Care Homes and Care at Home business has the potential to expand in multiple locations across India over 5 years.
8. Residences for Seniors business has the potential to grow in Tier 1 locations on a stand-alone basis or as a part of inter generational
communities, over 5 years.
9. Assisted care business trades at 30-35x EBITDA in US, transactions in Care at Home space in India happened at 5-10x revenue, both of which
imply significant value creation opportunity in Antara’s core focus areas
4
Senior-care is an emerging mega-trend in India with USD 10 bn+
market across value pools, but is highly underserved currently Living
Home care
Home concierge
Market place model
Annual revenue
Tailwinds driving growth of senior care Senior care value pools (except core healthcare), USD billion potential (USD bn)
High
Fastest growing age segment in India Portable medical
devices & wearables
1 ▪ 120 mn senior citizens in India and will
comprise 10% of total population in 1.0
India by 2025 0.5
0.6
Competitive intensity
Community Living
Safety services
Increasingly living alone
0.4
Sr. care products
2 ▪ 17% of elderly are living alone with
3.5 0.5
(e.g. Diapers)
drastic fall in the ratio of care givers to Online financial
the elderly services
Online travel packages
Healthcare is largest share of their
1.1 Assisted
wallets, with multiple unmet needs 3.9 Living
▪ 3-4X spend on HC by senior households
3 than those living alone
0.7 Home Health care
▪ 5% seniors suffer with dementia (e.g. Physiotherapy, Lab)
Low
▪ 7% seniors are immobile in Urban India Daily convenience
▪ 30% need dedicated post-op care (e.g. concierge, grocery shopping etc)
Low Profitability High
5
Antara “Who We Are”
6
Overall Structure
The Antara story: Executive Summary
Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model
Residences for Seniors
Assisted Care Services
Overall summary: Creating shareholder value over next 5 years
7
Residences for Seniors vertical continues to present a huge potential in India
There is huge demand for Residences for Seniors across India… Industry facts…
▪ 30+ players in the senior living space with
top 6 having over 45 communities
▪ Top players (seniors served):
– Columbia Pacific Communities (~1600 units)
– Ashiana (~2500 units)
– Athashri (~1500 units)
▪ As per PWC report 2020;
• Currently, 12,500 units exists, of which
10,500 already been sold
• Expected demand over the next few years
is 2 lakh units
• Inventory sold in last 10 years is expected
to be sold in the next 4 years
SOURCE: CII Senior care India report 2018, Expert conversations 8
Antara Dehradun: Cumulative net sales at 134; Net collections at INR 375 Cr as of
Dec’20
Key highlights:
• Sales: maintained a gross sales velocity^ ~3 per month
Cumulative sales and collection trend
400 140
(for last three months)
Available units – 197; Saleable area (sq ft) : ~ 5,75,500
134
Impacted by COVID 130
• Reopened experiential stays
375
375 130
123
124 124 • Resident referrals - 10 sales
351
350
116 340 340
120 • Channel partners now active in Doon
330
325 110
317
• Pricing: Avg. sales realisation ~Rs 13,250/sq ft in 9M
300 100
Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21
• Collections: Maintained a robust monthly collection trend
Collection (Rs Cr) Units sold (nos) of ~INR 7 Cr per month
• Debt : Debt outstanding as at Dec’20 end: Rs 144 Cr
^ before cancellation and replacement sales
9
Antara Noida: Cumulative net sales at 134; Net collections at INR 23 Cr as of
Dec’20
Cumulative sales and collection trend Key highlights:
25 134 150
Phase I Available units – 340; Saleable area (sq ft): ~ 7,45,000 • Sales: maintained a gross sales velocity^ ~8 per month (for
23
20 111 120 last three months)
15 • All the inputs in place to support sales
15 90
Impacted by COVID • Increasing customer traction - 100 site visits done in the last 50 days
10 60 • Robust pipeline of hot & warm clients in place
38
27 • Re-oriented marketing efforts - sharp focus on digital, leveraging quality
5 30
2 of life elements of Antara
2
- 0 • Over 92% collections within time
Q4FY20 Q1FY21 Q2FY21 Q3FY21
Collection (Rs Cr) Units sold (nos)
• Pricing: Avg. sales realisation ~Rs 7,000 per sq ft in 9MFY21
• Project cost for Phase 1 (incl. Land) over next 4 years : Rs
Payment plan (break-up basis units sold) 330 Cr
6%
• Project update: Excavation for R1 & R2 started, PMC on
14%
board, construction to start from Q1FY22
10%
• Phase 1 Project completion expected by Mar’25
2%
• Equity Funding (including Rs 31 Cr for Phase II) :
68%
• Equity invested till Dec’20 : Rs 27 Cr
• Committed capital for FY22 : Rs 40 Cr
Down payment Construction linked 10:20:30:40 10:20:70 10:90
• Peak equity requirement : Rs 74 Cr
^ before cancellation 10Overall Structure
The Antara story: Executive Summary
Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model
Residences for Seniors
Assisted Care Services
Care Homes
Care at Home
MedCare
Overall summary: Creating shareholder value over next 5 years
11Antara Assisted Care Services shall offer an integrated ecosystem to help
maximise customer share of wallet and yield cost synergies
“Anchor” Care Homes and Memory Care Care at Home services
Homes for seniors Offered to seniors around a
15-20 km radius of an
anchor care home
Residences for Key services are:
Seniors – Critical care
– Physio / Rehab
– Nursing / GDA
Care at – Diagnostics
Home – New services (e.g. eye/
Care dental checkup, dialyses)
Homes
& Leveraging common
Memory resources (e.g., nurses,
Warm home-like environment with large common areas physios), as well as driving
Care
Care Homes: Customer synergies in customer
Memory Care Homes: Homes acquisition (e.g., hospital
– # Rooms: 30 – # Rooms: 50 tie-ups, word of mouth,
– # Beds: 37 (25% – # Beds: 62 (25% lifelong support for
double occupancy) double occupancy) customers)
– Long/short stay: – All long stay
~45:55 – Located in city outskirts Products / Services
– Located in high hospital – Additional manpower Products &
Services – Medical equipment (Medcare
density areas such as art therapist, Products)/ Financial / Legal
clinical psychologist
– Travel services
12Two Care Homes launched (Gurgaon & GK II) in the last 9 months
Gurgaon: 26 rooms with single/ twin occupancy, suites GK II: 32 rooms with single/ twin occupancy, suites
13
This information was prepared by Antara Senior Living Ltd. It is not to be used or relied upon by any 3 rd party without Antara’s written consent.Encouraging trends confirm belief in the Care Home product
- 75% increase in leads - 18 in July
Increase in to 158 in Dec
- Increasing interest in this category market - ~45% enquirers for understanding
from small hotels as well as interest the product
existing players – especially for and - 50% of all our leads are qualified
Short term stays curiosity
Increasing Show and
interest tell, - ~60% conversion from visits
from inspires - 30% conversions coming from
competition confidence hospital channel
- Current peak occupancy achieved
of ~22% in Gurgaon
- 3-4 Star hotels around our Care
Homes are priced from Rs. 3000-
7000 with breakfast
- Our pricing of 5000-6500 includes - Unit break-even at 45-50%
Unmatched
all meals, access to care givers and Unit occupancy
comprehen
doctor economics - Gurgaon likely to break-even by
-sive
stacks up year end
offering
14
This information was prepared by Antara Senior Living Ltd. It is not to be used or relied upon by any 3 rd party without Antara’s written consent.Most comprehensive service provider across value pools
Key Players
Services
• Home sample collection ✓ ✓ ✓ ✓ ✘ ✘
• X-ray @ home ✓ ✓ ✘ ✘ ✘ ✘
• ECG @ home ✓ ✓ ✘ ✘ ✘ ✘
• Critical care ✓ ✓ ✓ ✓ ✘ ✘
Care at • Nursing ✓ ✓ ✓ ✓ ✘ ✓
home • Physiotherapy ✓ ✓ ✓ ✓ ✘ ✘
• Medicine delivery ✘ ✓ ✓ ✘ ✘ ✘
• Procedures ✓ ✓ ✓ ✓ ✘ ✘
• Doctor @ home ✓ ✓ ✘ ✓ ✘ ✘
• Corporate medical rooms ✘ ✓ ✘ ✘ ✘ ✘
• Short stay ✓ ✘ ✘ ✘ ✘
Care home
• Long stay ✓ ✘ ✘ ✘ ✓ ✘
Med care • Sale ✓ ✘ ✘ ✓ ✘ ✓
products • Rental ✓ ✓ ✘ ✓
15
This information was prepared by Antara Senior Living Ltd. It is not to be used or relied upon by any 3 rd party without Antara’s written consent.Each service line is a sizeable market opportunity
Unorganized
Key competitors share
• ICU @ home L
Assistance
• Nursing/attendant H
• Pathology M
Diagnostic
• X-ray/ECG M
• Physiotherapy H
Rehabilitatio
n L
• Check-in rehab
• Sale H
Medical
equipment
• Rental M
• Short stay L
Care home
• Long stay L
16
This information was prepared by Antara Senior Living Ltd. It is not to be used or relied upon by any 3 rd party without Antara’s written consent.We have created a quality asset even during the most uncertain times ever
seen
Revenue in lacs Active COVID cases in NCR
• Team Onboarding • Launched multiple products in Care at • Sales team onboarded
• Product Proposition Home – HCC, Physio, Path • Central Command Centre team
90
• Key SOPs and processes • Pivoted and launched COVID products 40000
• GST structuring and Medical equipment 35,091
80
35000
• Payment channels activated 30,952
• Key contracts in place 27,524
70
26,246
30000
60
25000
50
20000
40
14,793 81.7
68.6 15000
30
10,743
9,142
10000
20
2,182 23.5 6,122
10
21.4 5000
14.8 15.2
5.7
0
0 0.2 0
April May June July August September October November December
• 1st revenue • GGN Care Homes • 1st • Physio, • Central • GK Care Home • FMRI
on 27th May Completion – 30th Hospital Path Operations Launch – 27th Nov Store
June tie-up service Office • Crossed 50L Launch
(PSRI) launch • Total headcount • Dehradun
crossed 100 launch
17
This information was prepared by Antara Senior Living Ltd. It is not to be used or relied upon by any 3 rd party without Antara’s written consent.Strong fundamentals put in place to ensure Scalability and Sustainability
Design principles Product proposition Operations/Service delivery
✓ Product Each product curated for
✓ Economics experience & clinical quality
Competitive pricing with
✓ Patient safety attractive margins
✓ People Agility on product
✓ LTFS
identification and launch
’Launched 12 services, with all Launched quality delivery infra &
Built strong business fundamentals in-house delivery people centralized command center
Business setup Sales & marketing People
• 18 sales team
members
• Brand positioning
creatives
• Digital website
~130 team
• 4 hospital tie-ups members
Ensured all financial, tax, legal and Established AACS as a credible player Defined roles, training, incentive
regulatory compliance in the market structures and focused engagement
18
This information was prepared by Antara Senior Living Ltd. It is not to be used or relied upon by any 3 rd party without Antara’s written consent.Antara Assisted Care Services (AACS): Q3FY21 performance
Care at Home Care Homes
Revenue and Volume trend Revenue and Volume trend
4500 150.0 5000 50.0
9 31 46^ 4,274
116.6 4000 40.0
3000 100.0
32.4
3000 2,720 30.0
46.4 2000 20.0
1500 50.0
1000 7.2 10.0
5.9
350
~ 1,600 ~ 3,500 97
0 ~ 300 0.0 0 0.0
Q1FY21 Q2FY21 Q3FY21 Q2FY21 Q3FY21
Volume served (nos) Revenue (Rs lacs) Available (bed days) Occupied (bed days) Revenue (Rs lacs)
Capacity created (Frontline staff) 1. GK Care home launched on 27th Nov’20
2. Q3 revenue from Gurgaon care home ~ Rs. 23.9 Lacs and GK care
^ Frontline staff is being cross utilized between Care Homes & Care at Home
home ~ Rs. 8.5 Lacs.
1. Entered Dehradun market in Dec’20
3. 4 additional Care Homes and 1 Memory Care Home to be launched in
FY22
AACS Capital deployed till Dec’20 Rs 15 Cr, Committed capital for FY22 Rs 70 Cr & Peak capital requirement Rs 225 Cr
Note:
1. Revenue reported above is on gross basis before netting of discounts
2. Available and Occupied bed days considered for patient only excludes attendant bed days 19Sharp focus on Centre Economics
Year 5 financials (Care Homes) Year 5 financials (Care at Home)
▪ Average Revenues : INR 6-7 Cr ▪ Average Revenues^ : INR 4-5 Cr
▪ EBITDA Margin : 20%+(EBITDA positive from year 2) ▪ EBITDA Margin : 20%+(EBITDA positive from year 1)
▪ Capex : INR 2-2.5 Cr ▪ 15-30% margin across service lines
GDA,
Service Profile
▪ Memory Homes – Revenue & Capex – 1.5x Care Homes 5-10%
Nursing,
10-15%
▪ Key Insights: Model - Short Stay (SS) & Long Stay(LS)
New Services,
Critical care,
5-10%
35-40%
• 30 rooms, 37 Beds Medical
Equipment,
• Steady state occupancy 85%, SS:LS mix 55:45 5-10%
Physiotherapy,
Diagonostics,
• Pricing 1.25-1.5L per month LS, ~5k-6k per day SS 15-20%
15-20%
Note: The above Centre Economics does not include Corporate costs ^ Average revenues mapped to the Centre 20MedCare business line launched in Q3FY21: First retail store launched in Fortis
Hospital Gurugram in Dec’20
Key Highlights
• Comprehensive range of
products across 5 key
categories (over ~800
SKUs)
• Rehabilitation
• Respiratory
• Mobility
• Bathroom Accessories
• Preventive & Wellness
• Rental option for select
medical equipment
• Revenue of Rs 22.7 lacs in
Q3FY21
Note: Revenue reported above is on gross basis before netting of discounts
21Overall Structure
The Antara story: Executive Summary
Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model
Residences for Seniors
Assisted Care Services
Overall summary: Creating shareholder value over next 5 years
22Antara aspires to be a multi location company over next 5-6 years
North Cluster
▪ Largest market with 1.3m
population in our TG
▪ Most evolved market
▪ Dehradun, Noida, opportunities
under discussion in Gurgaon
West Cluster
▪ High affluence, high price
market
▪ Large demand, with 1.9m of
TG staying in Mumbai, Pune
▪ Evolved market, with players
like Athashri by Paranjape
Developers, Gagan Mu Life,
Ashiana Lavasa
South Cluster Care Homes
▪ Evolved market, with multiple
innovative models e.g., SuVitas
for short stay, Mantri Primus Memory care
Lifespaces in residences,
Medwell & Portea for home Residences
care
▪ High demand with 0.8m of our
TG in the market Care at Home
1. Mass affluent taken as >15L HH income 23For future projects, Antara shall focus only on our core strengths of Design, Sales &
Marketing and Operations
Land 25-40% Design and architecture 5-8% Construction 35-50% Sales & Mktg 5-7% Operations NA
Activities acquisition
with
benchmark
costs (as a % Project management 10-12%
of project cost)
▪ Access / ownership ▪ Experience with ▪ Experience in ▪ Designing detailed ▪ Deep understanding of ▪ Ability to service and
of low-cost land construction of construction of large project workplan TG; identifying most maintain large
▪ Land related legal senior living / residential / with milestones optimum ways to reach properties
expertise functional spaces functional facilities ▪ Ensuring on - track them ▪ Economies of scale
Key success ▪ Strategic progress against ▪ Developing strategic w.r.t procurement to
factors procurement related plan relationships with ensure optimum
partnerships to ▪ De-bottlenecking channel partners monthly charges
optimize costs issues regarding ▪ Conducting ▪ Access to low cost,
▪ Access to low cost, labour/ material events/designing and high quality labour
quality labour procurement, etc. executing digital strategy and staff
Antara’s
capabilities
▪ Rich experience ▪ Partnership ~Knowledge and network ▪ Access to over 50,000 ▪ Inhouse management
▪ Strategic investor on senior specific across construction/ PMC eco system. affluent seniors of health care services,
Our strategy for Growth Capital resident engagement
for creating design features
both for land and club operations.
a profitable through Doon
acquisition and ▪ Partnership for non-core
play experience.
project offerings like facility
management.
▪ Antara’s core capability ▪ Partnership
SOURCE: Expert interviews, team analysis, client discussions, website search 24Antara shall get strategic investors on a ‘Development Manager’ model
5-year cumulative illustrative financials: Noida and 3 new projects of 1 Mn Sqft sellable area in the
identified locations
▪ Locations: North (Gurgaon) | West (Mumbai) | South (Bangalore)
▪ Project Development Cost: INR 2,500- 3,000 Cr
▪ Funding: INR 1,000 Cr (Debt: Equity – 1:1)
▪ Antara’s Capital Commitment (Noida – INR 56 Cr + 3 new projects @15% - 75 Cr) : INR 130 Cr.
▪ IRR: 20 - 25%
25Antara Assisted Care has the potential to become an INR 500+ crore revenue
business with 12-15% EBITDA in 5 years
Year 5 financials
▪ Revenues : INR 500+ Cr
▪ EBITDA Margin : 12-15% (EBITDA positive from year 3)
▪ Profit Margin : 8-10% (PBT positive from year 4)
▪ Peak cumulative capital required: 200-225 Cr (in year 4, self funding from year 5 onwards)
▪ Capital returned between year 7 and 8 (every CH unit returns capital in 3rd year but scale
up in # of centers delays overall return of peak capital)
▪ ROCE and IRR : 25%+
▪ Plan to set up 35-40 Care and Memory Homes with over 1,200-1,500 beds over 5 yrs
Note: FY20-21 is a pilot year
26Disclaimer
This presentation has been prepared by Max India Limited (the “Company”). No representation or warranty, express or implied, is made and no 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 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 given 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 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.
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