Narayana Hrudayalaya : Investor Presentation - Q1, FY2023

Investor Presentation

August 2022

Important Disclosure

No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements", including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment.

Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company's business, its competitive environment and political, economic, legal and social conditions in India.

This communication is for general information purpose only, without regard to specific objectives, financial situations and needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation can not be copied and/or disseminated in any manner.

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NH at a Glance

As on 30th June 2022

44	Healthcare Facilities	Operational beds
19	Owned / Operated Hospitals(1)	5,391	Beds
2	Managed Hospitals(2)	283 Beds
4	Heart Centres	263	Beds
18	Primary Healthcare Facilities(3)	0	Beds
1	Hospital in Cayman Islands	110	Beds

NH's footprint in India

Kakriyal, Jammu

Northern Region

4 hospitals Operational beds: 1,117

Delhi NCR

6,392 Capacity Beds

6,047 Operational Beds

3.7 mn(4) Average Effective Capital Cost per Operational Bed

30+	Specialities

17,841	Full-time Employees and Associates
	including 3,819 doctors

Western Region
2 hospitals	Jaipur
Operational beds: 352

Ahmedabad

Mumbai

Shimoga Bellary

Karnataka Region

Bengaluru

6 hospitals, 4 heart centres

Hospital operational beds: 2,058 Mysore

Heart centres' operational beds: 263

Bengaluru has 3 hospitals

Guwahati

Jamshedpur

Raipur

Kolkata

Eastern Region

8 hospitals Operational beds: 2,047

Kolkata has 5 hospitals

1. NH owns the P&L responsibility
2. NH manages 3rd party hospitals for Management Fees; including 1 project at St. Lucia
3. Includes clinics, information centres, etc
4. Based on (Gross Block for Fixed Assets (adjusted for non-cash government grant provision impact, non-cash financial lease impact for Dharamshila unit, non-cash EPCG beds as of June 30th 2022 but excluding Managed Hospitals and Cayman facility

license impact )+ Capital Work in Progress (CWIP)) / Number of operational

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Key Highlights - Q1 FY23….(1/2)

Clinical &

Operational

• Operationalizing 3 additional operating rooms, Narayana Institute of Cardiac Sciences (NICS), Bengaluru performed 2,027 cardiac surgical cases during the quarter and also reported the highest ever monthly cathlab procedure volumes of 1,687 in May 2022
• Rabindranath Tagore International Institute of Cardiac Sciences (RTIICS), Kolkata successfully bridged a patient with end-stage heart failure to transplant with CentriMag biventricular assist device (BiVAD); the unit also has to its credit successful implantation of suture-less aortic valve, the first such case in the eastern India region
• Significant momentum in tertiary and quarternary clinical activity ensured that 75 Bone Marrow Transplants, 20 Liver Transplants, 8 Heart Transplants and 192 Renal Transplants were successfully performed across the group in Q1 FY 23
• Focusing upon cutting edge advanced care, 30 Transcatheter aortic valve implantation (TAVI) procedures as well as 125 robotic interventional procedures were performed across the group in Q1 FY 23
• NH SRCC, Mumbai successfully performed Craniosyntosis, a complex procedure in the craniofacial surgical segment for paediatric patients

Financial

Performance

• Consolidated operating revenues of INR 10,334 mn in Q1 FY23, an increase of 20.2% YoY and 9.9% QoQ
• Consolidated EBITDA of INR 2,000(1) mn in Q1 FY23 translating into EBITDA margin of 19.4% and consolidated PAT of INR 1,106(2) mn at a PAT margin of 10.7%
• Consolidated Total Borrowings less Cash & Bank Balance and Current Investments of INR 829 mn as on 30th June, 2022 ie net debt to equity ratio of 0.05 (Out of which, debt worth US$ 28 mn is foreign currency denominated)

1. As per the new accounting treatment for leases per IND AS 116 effective 1st April 2019 which resulted in INR 144 mn increase in EBITDA for Q1 FY23

(2) As per the new accounting treatment for leases per IND AS 116 effective 1st April 2019 which resulted in INR 2 mn increase in PAT for Q1 FY23

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Key Highlights - Q1 FY23 ….(2/2)

Digital

Initiatives

• Implemented cost estimation module in our in-house ATHMA HIS (Hospital Information System) to provide accurate estimate for planned admissions and checklist management for clinical staff to improve patient safety
• Designed and developed a new user interface / user experience (US/UI) in AADI (Aathma Application for Doctor Insights) mobile application to improve adoption and productivity of doctors
• Implemented "Trend Analysis" feature for Laboratory reports in NH Care mobile application to help patients to understand performance of key indicators over a given period and take appropriate actions and also implemented vaccine tracker in the application to help parents to monitor their child's vaccination schedule

ESG

Initiatives

• Achieved a net carbon reduction equivalent of 3,705 tonne through various energy optimization activities like using alternate energy, upgrade/replacement of equipment etc adopted across the network
• Achieved energy savings worth INR 9.1 mn across our units at Health City, Bengaluru and at Mysore through captive alternate energy sourcing channels and worth INR 3.6 mn through upgradation of equipment across our units across Health City at Bengaluru, RTIICS at Kolkata, Dharamshila at Delhi and at Ahmedabad
• Conducted thermography, electrical safety and energy audit across 3 units of the NH-Group along with fire safety audits across 2 facilities
• Initiated Business Responsibility & Sustainability Report (BRSR) / ESG framework implementation across group

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