Max India Limited Investor Presentation August 2020 www.maxindia.com
Max Group Vision “To be the most admired corporate for service excellence” • Positive social impact • Culture of Service Sevabhav • Helpfulness • Mindfulness • Expertise • Entrepreneurship Excellence • Dependability • Business performance • Transparency • Respect Credibility • Integrity • Governance 2
Max Group – Overview Max Group - Sponsors 26.0% 40.9% 49.7% Companies Holding Senior Living and Real Estate, Manufacturing Life Insurance Business & Other businesses Skilling businesses 51% 72.52%^ 100% Operating Companies 100% • Assisted Care Services o Care Homes o Care at Home 100% • Residences for Seniors 100% 100% Relatively stable, profitable and dividend Growth businesses Entrepreneurial Ventures paying 3 ^ Max Life to be 70:30 JV with Axis Bank post series of transactions
Evolution of Max Group Second wave : Group reinvented First wave: Early years, Third wave: Corporate restructuring to from a B2B conglomerate to a B2C Started with Manufacturing unlock value & Portfolio Rebalancing company (2000 – 2014) Businesses (1982 – 2000) (2015-20) Started its journey with Demerger, Wider world of businesses Reinvented itself … Shifted from B2B Manufacturing & trading through MVIL, Portfolio rebalancing, to B2C : businesses Holistic Senior care service provider : • Life Insurance: JV with NYL in 2001, new • Demerger: Spilt into 3 entities, Max Financial, • Pharma : Penicillin-based drug JV partner MSI in 2012 Max India & Max Ventures • Packaging Films : Max Speciality Films • Health Insurance: JV with Bupa in 2009 • Wider world of businesses : MVIL forays into Real Estate; NYL acquires 22.5% stake in MVIL; • Electronics: Partnered with Avnet • Healthcare: JV with LHC in 2012, LHC Toppan inducted as JV partner in Max equalize stake in 2014 invested 766 Cr • Cellular services: JV with Hutchison Speciality Films • Re-balancing Portfolio : MHC merged with • Senior Living: Launched first community • Paging services: Tie-up with Motorola Radiant to create 3 rd largest Hospital chain; in Doon in 2013 • Communication & Satellite: Comsat JV True North acquired Max’s stake (51%) in Max • Fund Raised: Warburg invested 340 Cr in Bupa for Rs 543 Cr • Printed Circuit Board: JV with Atotech 2005; 1000 Cr QIP in 2007; IFC invested • Holistic Senior care service provider: Antara • Divestment: Divested 40% stake in 450 Cr till 2009; GS invested 522 Cr in aspires to create an ecosystem for seniors Telecom business for a gain of 488 Cr 2010 offering a blend of lifecare & lifestyle products. 4
Journey of Successful Partnerships Current JV Partners Investors Past JV Partners 5
Max Group has delivered 23%+ CAGR over last 30 years, outperforming benchmarks 23%+ returns for Max Group shareholders since inception (last 30 yrs) Value creation during 2016 to 18,000 2020 remained muted due to: 824 CAGR • HDFC Max Life merger called off 8% • Market perception around 824 13,500 continuity of Axis partnership CAGR since • Regulatory intervention in inception 23% CAGR healthcare and S’Bagh incident 23% 9,000 17,107 • Increase in promoter pledge due 13,190 to recent correction in stock prices CAGR and few hospitality assets 175 4,500 18% acquired in anticipation of CAGR 4,818 19% liquidity post completion of HDFC CAGR 175 167 61% 1,859 5 & Max Life Deal 698 - 1989 2000 2005 2011 2016 Jul'20 Dividend Paid Group market cap Value creation (Cr) 865 2,034 4,993 14,014 17,931 6
Max Group Overview 1 USD 2.5 billion Revenues… 4 Mn Customers… 16,000 Employees… ~46 ,000 Agents 2 Strong growth trajectory even in challenging times; a resilient & diversified business model 3 Steady revenue growth and cost rationalization leads to strong financial performance 4 Well established board governance….internationally acclaimed domain experts inducted 5 Diversified ownership…..marquee investor base 6 Superior brand recall with a proven track record of service excellence 7 Strong history of entrepreneurship and nurturing successful business partnerships 7 basis FY20 numbers for conversion assumed 1 USD = INR 75
Max India – Board of Directors Executive Chairman of Antara Senior Living. She Chairman and Founder Founder and Chairman of Max Group. Awarded Director is the youngest member to join the board of Max Mr. Analjit Singh with highest civilian honor, the Padma Bhushan Mrs. Tara Singh Vachani India as a Non-Executive Director One of the most admired actresses of the Indian Managing Director Director Seasoned professional with 36 years of Film Industry. She is UNICEF’s goodwill Mrs. Sharmila Tagore experience in Corporate Finance and Banking ambassador in socio-cultural & community Mr. Mohit Talwar projects and awarded Padma Bhushan in 2013 Seasoned business leader with experience in Former IRS, has more than 3 decades of Director Independent Director leading FMCG companies like Mondelez, Gillette experience in Indian revenue services. Served as Mr. Ashok Kacker Mr. Pradeep Pant Chief Commissioner of Income Tax and Nestle 8
Max Group – Senior Management Mohit Talwar • Vice-Chairman, Max Group • Managing Director, Max Financial Services • Managing Director, Max India Limited • Vice-Chairman, Max Ventures and Industries Ltd Prashant Tripathy Sahil Vachani • • Managing Director & CEO, Max Life Insurance MD & CEO, Max Ventures and Industries Limited • Director in Max Financial & Max Life Insurance Tara Singh Vachani Rajit Mehta • • Executive Chairman, Antara Senior Living Managing Director & CEO, Antara Senior Living • • Director in Max India & Max Healthcare Group role to oversee Max India New Growth Initiatives and Advisor for Max Group’s Human Capital Rajender Sud Ramneek Jain • • CEO, Max Skill First Limited CEO, Max Specialty Films 9
High pedigree of long-term investor base Shareholding concentrated with Marquee Investors ▪ Ward Ferry Shareholding Pattern as on 15 th Jun 20 ▪ Locus Investments (Ashish Dhawan) ▪ Briarwood Capital Public 18.4% ▪ International Finance Corporation ▪ Doric Capital Promoter 40.9% ▪ New York Life Insurance ▪ TVF Fund ▪ FII/FPI Target Asset management IFC 36.9% 3.1% ▪ Nomura Singapore Mutual Funds 0.7% ▪ India insight value Fund ▪ Habrok India Fund Number of outstanding shares: 5.38 Cr. ▪ Mauryan First ▪ Dimensional Fund 10
Max India SOTP value at Rs. 160 per share; Rs 180 per share post capital reduction (based on invested capital#) Other Assets (Rs. 500 Cr) Senior Living – Residences for Seniors New Businesses (Rs. 10 Cr) Invested Capital* (Rs 357 Cr) (Care Home and Care at Home) Antara 1.0 - Dehradun (Asset Heavy) • Care Homes (Assisted Living) – Max Towers (61k sq ft) – Rs 100 Cr Invested Capital (Rs 207 Cr) Rs Cr • Annual Rental Income of Rs 6 Cr Pilots in Gurgaon & Delhi. Investment** 357 expected on fully leased out basis Gurgaon launched in Q2FY21 and Less: Impairment (150) Delhi launch expected in Oct’ 20 Fair Value (Unsold inventory of 66 units, 207 Cash^ – Rs 400 Cr Ownership of Club House & Usable FSI) • Antara Growth Capital – Rs. 300 Cr+. • Care at Home (Home care) – (to be deployed over next 3-4 years) Antara 2.0 - Growth (Asset Light) Invested Capital (Rs 150 Cr) Pilot launched in Q2FY21 • Capital reduction – Rs. 92 Cr. (reserved, subject to Board approval, Residences for Seniors – Noida launched in Jan’20 to be proposed immediately after Investment in Integrated campus at Greater Noida for listing of Max India) • Invested Capital (Rs 10 Cr) residences for seniors, care & memory care homes ^ As at Jul’ 20 end; includes unrealized gain on MF of Rs 12 Cr * Invested upto Aug’ 20 ** Equity – Rs 337 Cr; ICD – Rs 20 Cr # Adjusted for impairment of Rs. 150 Cr 11
MAX INDIA LIMITED ANTARA SENIOR LIVING LIMITED Building a scalable & profitable play in the senior care industry www.antaraseniorliving.com 12
Overall Structure The Antara story: Executive Summary Antara 2.0 Strategy: Shifting towards ‘Assisted Care Services’ led growth model Assisted Care Services Residences for Seniors Overall summary: Creating shareholder value over next 5 years 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.
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