February 2011

Disclaimer
This presentation may not be copied, published, distributed or transmitted. The presentation has been prepared solely by the company. Any reference in this presentation to Fortis Healthcare Limited shall mean, collectively, the Company and its subsidiaries. This presentation has been prepared for informational purposes only. This presentation does not constitute a prospectus, offering circular or offering memorandum and is not an offer or invitation to buy or sell any securities, nor shall part, or all, of this presentation form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. Furthermore, this presentation is not and should not be construed as an offer or a solicitation of an offer to buy securities of the company for sale in the United States, India or any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering in the United States may be made only by means of an offering document that may be obtained from the Company and that will contain detailed information about the Company and its management, as well as financial statements. Any offer or sale of securities in a given jurisdiction is subject to the applicable laws of that jurisdiction. This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forwardlooking statements. Given these risks, uncertainties and other factors, recipients of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this presentation, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. 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. By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

Agenda

A. Healthcare Industry in India

B. Company Overview

C. Recent Developments

D. Financials

Hospitals: Proxy for Indias Healthcare Boom

The Healthcare delivery market in India pegged at around US$ 45 billion in 2010 While globally healthcare is typically provided through a largely government-funded public system, the Indian healthcare industry is dominated by the private sector India has ~17% of the world's population, but one of the poorest healthcare infrastructures among growing economies and the lowest spend on healthcare (~4.1% of GDP)

Demographic changes, improving income levels, changing lifestyles, and rising insurance penetration etc
will result in a rise in discretionary spending on healthcare Accessible, reliable and affordable healthcare continues to be a challenge Opportunity in healthcare being significantly leveraged by private healthcare providers Expected to generate employment opportunities for
US$bn 26 19 17 2008 20 2010 25

Indian Healthcare Market (US$bn)

CAGR: 12%

39

9 million people by 2012

2013E
Source: Analyst Research

In-patient market size

Out-patient market size

Evolution of Healthcare in India

Very Low Healthcare Spend as % of GDP
15.7%

High Disease Burden & Insufficient Facilities

20%

11.0% 10.1% 8.4% 8.0%

8%
8% 9%

4.3%

4.1%

3.7%

6% 1%

US

France

Canada

UK

Japan

China

India

Thailand

Disease burden

Beds

Doctors

Nurses

Community & Lab health workers technicians

Significantly Low Hospital Beds Per 10,000 Population

Changing Age Profile of Indian Population

139

7 11 20

8 12 20 28

8 14 20 29

9 15 21 28 27 2017E 30 - 44 years

11
16 23 26 25 2021E 45 - 59 years

12 16 24 24 23 2026E 60+ years

72
27

39

34

32

31

30

24

22 9
35 32 29 2012E

Japan

France

UK

CanadaSingapore

US

China

Brazil Thailand

India

2001 0 - 14 years

2007

15 - 29 years

Source: WHO, FICCI, Ernst & Young, Analyst Research

Lifestyle Changes Driving Diseases Which Require Hospitalisation

Changing Disease Profile
100%
Cancer Heart disease Other circulatory

Expected No. of Cardiac Patients in India

Number of people (in million)

72.1

90%

80%

CNS Disorders Diabetes

Lifestyle Diseases

45.0

70%
Asthma

60%

Others Sense organs

50%

Muscoloskeletal Accidents Acute Infections

40%

Acute Diseases

2008

2018E

30%

Estimated No. of Diabetes Patients

Number of people (in million)

20%

Cancer and Cardiac Grows widely in the lifestyle segment

10%

49.4 39.0

0% 2001 2012E

Lifestyle diseases are set to assume a greater share of the healthcare market Lifestyle diseases such as cardiac diseases require hospitalization and are more expensive to treat hence increasing the in-patient revenues
Source: CII-McKinsey, CRISIL Research

2008

2018E

India: Potential to Become the Global Healthcare Destination

Overview Medical value travel is one of the most lucrative segments of Cost of Important Procedures (US $)
US UK Thailand Singapore India

the healthcare sector and is expected to grow into a US$ 1.5

billion industry by 2012
Heart Surgery
100,000 1,60,000 250,000 300,000 48,000 38,000 41,726 30,000 292,470 200,000 50,109 18,000 14,250 10,500 62,500 75,000 8,000 10,000 15,312 13,000 150,000 140,000 25,000 12,000 6,000 6,000 30,000 69,000 6,000 6,000

Potential to contribute US$ 1.2 2.4 billion additional revenue for up-market tertiary care hospitals by 2012, and will account for 3 5% of total healthcare market

Heart Valve Replacement Bone Marrow Transplant Liver Transplant Knee Replacement Hip Replacement

Key Drivers For The Growth Quality healthcare at fraction of the cost Availability of skilled doctors & hospitals Good reputation of Indian doctors Upsurge of lifestyle diseases

Issues Inadequate healthcare infrastructure Unstructured medico legal jurisdiction Indians hospitals standards below par against the global benchmarks of care Lack of accredited hospitals and follow up care

Health Insurance
Growing Share Of Urban Middle Class Households
100% 80% 60% 40% 20% 0% 2001-02 <US$ 2,100 2006-07E US$ 2,100 - 12,800 2010-11E >US$ 12,800 52.5% 42.3% 3.3% 5.2% 7.0%

Health Insurance Market Size (US$mn)

7,000 6,000

6,207

44.2%

CAGR: 32%

52.5%

58.6%

5,000 4,000 3,000 2,000 1,127 1,472

34.5%

1,000 0

494

713

2006

2007

2008

2009

2015E

Health insurance market in India is expected to grow at a CAGR of 32% to reach a market size of US$ 6.21bn by FY15

One of the fastest growing free economy Ranked 4th largest economy in the world in terms of purchasing power parity Higher service mix, increasing urbanization

Overall penetration at 2%. Growth driven by: a) increasing awareness, b) soaring healthcare costs and c) demographic profile of the people

Source: CRISIL Research

Agenda

A. Healthcare Industry in India

B. Company Overview

C. Recent Developments

D. Financials

The Fortis Edifice..

Vision
To create a world-class integrated healthcare delivery system in India, entailing the finest medical skills combined with compassionate patient care

Globally respected healthcare organization known for Clinical excellence and Distinctive Patient care

Achieved by

Talented people

Strong value system

Efficient systems

Responsibility towards stakeholders

Foundation of 10

Trust

Fortis Healthcare: Amongst Asias Largest Healthcare Service Providers

Incorporated in 1996, Fortis is second largest healthcare chain in India built on a focused organic and inorganic strategy Has 53* healthcare delivery facilities

30 operating hospitals,

16 satellite and heart command centers and

7 hospitals under development

Listed on Indian stock exchanges with a market capitalization of c.USD1.3bn (Feb 2011) Received international accreditation from reputed bodies such as JCI and NABH / NABL along with quality certifications (ISO 9001 / 14001) Acquired 10 hospitals from Wockhardt Hospitals in 2009 and gained pan India presence and had recently acquired a ~25.3% stake in Parkway Holdings (Southeast Asias leading healthcare service provider with a network of 20** hospitals with more than 3,400 beds throughout Asia) and has chosen to exit considering higher valuations
Took a significant step in establishing Fortis as a Global Healthcare Brand by its attempt to acquire Parkway Holdings Ltd Asias finest healthcare provider, but exited considering high valuations of the asset

Started first hospital at Mohali

Acquires Escorts chain of hospitals

Company achieves profitability on consolidated basis

Acquired Malar Hospitals, Chennai

Enters Delhi Commences operations at Noida

Listed on BSE and NSE with a market cap of USD543mn Starts hospital at Jaipur

Rights Issue Acquired 10 hospitals from Wockhardt

Revenues grow 4x with strong presence in NCR

* Includes projects under development

11

Key Differentiators Success Drivers

Strong IT system

Brand

Differential Model Doctor engagement, Deep penetration Strategy, Pan India presence

Key Differentiators

Bandwidth for future growth, managed through team of professionals

Operational Synergies FOS, TRM, PSM

Stress on Quality, Patient Centricity

12

Organisational Chart
Managing Director

Chief Financial Officer

President Strategy, Organisational Development & Projects

Chief Executive Officer

Head Growth & Business Planning

Vice President Corporate Affairs

Chief People Officer

HeadInformation Technology

Chief Financial Controller

Chief Sales

DirectorMarketing & Corporate Communications

Director-Medical Operations Group

Regional / Zonal Directors*

Head Internal Audit

* The business is bifurcated into three regions headed by Regional Directors (RDs) for respective regions.

13

Driving Efficiencies
Branding & Marketing Conveying Value Proposition

Operating Efficiency ARPOB, Occupancy, ALOS Gross Margins, EBIDTA Bed to Nurse ratio Supply Chain Management Best practice benchmarking DSO/ Inventory Days Surgical : Non Surgical Shared Service Centres FOS, MOS, Patient Satisfaction Index Capital Efficiency Optimize Capex Cheap Finance Model of Growth Outsourcing Off Balance Sheet Turn key/ PPP/ Leased Premises Technology Management : COE

Maximizing Return on Invested Capital

Processes
IT System, Protocols, SOPs, Governance, Trust and Transparency , Integration Capability, Project Execution People Motivated, Trained and Engaged Staff: Service Excellence, Academics & Research, HR Processes

14

Deep Pan India Presence

Increasing Focus on High-Growth Specialties Most of Fortis hospitals are multispecialty hospitals, which provide secondary and tertiary healthcare to patients Some of the multi-specialty hospitals also include superspecialty Centres of Excellence providing quaternary healthcare to patients in key specialty areas such as cardiac care, orthopaedics, neuro-sciences, oncology, renal care, metabolic diseases and mother and child care
Escorts Hospital Delhi, Fortis Escorts Hospital Raipur and Fortis Hospital on Cunningham Road, Bangalore focus on cardiac care Fortis La Femme at New Delhi is a "boutique" style hospital that focuses on womens health and maternity care Fortis Hospital on Rashbehari Avenue in Kolkata is a Centre of Excellence in urology
Fortis Hospital, Kangra (2010) Escorts, Amritsar (2006) Sadbhavna Medical & Heart Institute, Patiala (2006) Fortis City Centre (2006) Fortis Hospital, Ludhiana - I Fortis Hospital, Ludhiana - II Fortis Mohali (2001) Kalyani, Gurgaon (2006) Alwar, Rajasthan (2011) Escorts, Faridabad Ravindera Cath Lab, Hisar Fortis Escorts Jaipur (2006) Goyal Hospital, Jodhpur (2006) Fortis Hospital, Ahmedabad Fortis Modi Hospital, Kota (2006) Fortis Hospital, Mulund (2009) Fortis Hospital, Kalyan (2009) SL Raheja (Mumbai) (2010) HHPL (Mumbai) (2007) Arneja Hospital, Nagpur (2006) La Femme (2005) Fortis Noida (2004) Kamayani, Agra (2006) Saraswati Heart Care, Allahabad (2006)
Fortis Vivekanand, Moradabad (2010)

Fortis Shalimar Bagh (2010) Jessa Ram (2003) Vasant Kunj (2006) Delhi Heart Institute and Research Centre (2010) Fortis Gurgaon Yashoda Hospital, Ghaziabad (2006) Escorts-Delhi (2006) Kalra Hospital, Delhi (2010) GNRC, Guwahati (2009) Fortis Hospital, Sarat Bose Road, Kolkata (2009) Fortis Hospital, Rashbehari Avenue, Kolkata (2009) Fortis Hospital, Anandpur, Kolkata (2009)
Raigarh (2010)

Raipur (2006) Birla Institute MRC, Gwalior (2006) Fortis Hospital, Gwalior

Fortis Malar (Chennai) 2008

Fortis Hospital, Nagarbhavi, Bengaluru (2009) Fortis Hospital, Cunningham Road, Bengaluru (2009) Fortis Hospital, Yashwant Pura, Bengaluru (2009) Fortis Hospital, CH Road, Bengaluru (2009) Fortis Hospital, BG Road, Bengaluru (2009) Fortis, RM Hospital, Bengaluru (2009)
Fortis East Coast, Pondicherry (2011)

Category Greenfield

No. of Hospitals 5

Operational Beds 850

Total Capacity 1934

Brownfield
Managed HCC's Projects Total

14
11 16 7* 53

1795
993 71 0 3709

2285
1743 71 2129 8162

Not included in above map are international hospitals/ projects * Expansion of beds at Mulund hospital is a project, but does not add a new hospital to the total number of hospitals. Although, the beds considered as part of capacity in Project stage

15

Strong Management with Significant Expertise

Mr. Malvinder Mohan Singh Non-Executive Chairman Mr. Malvinder Singh graduated from St. Stephens College, Delhi and holds an MBA degree from the Fuqua School of Business, Duke University, U.S.A He was earlier the Chairman of Parkway Holdings Limited, Singapore and Ranbaxy Laboratories Limited, one of the largest pharmaceutical companies in India He was the member of the Board of Trade, Ministry of Commerce & Industry, Government of India, from 2004 to 2009 Mr. Shivinder Singh graduated from St. Stephens College, Delhi and holds an MBA degree from the Fuqua School of Business, Duke University, U.S.A Earlier, he was COO of Fortis hospital at Mohali and also led the acquisition of Escorts and Wockhardt Hospitals and is currently managing director of Fortis Healthcare Limited

Mr. Shivinder Mohan Singh Managing Director

Dr. Lloyd Nazareth, COO, Fortis Hospitals

A Doctor by Profession, Dr Nazareth completed his post graduation in Pathology from University of Mumbai and practiced clinical medicine for 11 years. He completed his MBA (Finance) and Diploma in Computer Programming and switched over to Hospital Management 12 years ago and has been instrumental in the significant growth of Fortis Hospitals (erstwhile Wockhardt Hospitals).

Yogesh Kumar Sareen Chief Financial Officer

A chartered accountant by profession, Mr. Sareen holds a Bachelors degree in Commerce with Honors from the Punjab University
He has over 22 years of experience in the healthcare industry and over seven years of experience in management and finance functions

Daljit Singh President Strategy and Organization Development

He is a gold medalist from the Indian Institute of Technology, New Delhi and holds a Bachelor of Technology degree in chemical engineering He was a Commonwealth Scholar at the Senior Management Program at the Manchester Business School in 1995 He has over nine years of experience in the healthcare industry and over three decades of management experience

16

Typical Tertiary Care Model (200 Beds)

Indicative Hospital Operating Model
500
Book Breakeven

[1.3x 1.5x of CAPEX]

4x

400
Cash Breakeven

28%

Revenues

300
EBITDA Breakeven

Land Other Equip Medical Equip

13% 12% 25%

23%
16%

17%

200
x
31% 33% 36%

20% 28% 28%

23% 30%

Building & Utilities

100
50%

38% 38% 40%

27% 31% 29%

0
CAPEX

(16%)

Cost of set up is ` 60 90 lacs/ bed

30%

Occupancy

85%

(100)
ROCE = 26% ROE = 20%

Year 1 Direct

Year 2 Personnel

Year 3 Other Costs

Year 4 EBIDTA

Year 5

17

Focus on ARPOB
Surgical vs. Non Surgical

Medical Program

Critical Care Beds vs. General Care Beds

Total Revenue

Pricing

Specialties Chosen

Average Revenue Per Occupied Bed (ARPOB)

Occupied Beds

Average Length of Stay (ALOS)

Patient Turnover

Volumes

Bed Utilization

No. of Procedures

18

Fortis has Achieved Growth Both through Successful Acquisitions and Value Added Services
Ramp up at an acquired facility Fortis Malar, Chennai Extracting value from M&A: Escorts Delhi
` Cr.
64.1 61.2 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 FY07 FY08 FY09 EBITDA FY10 9MFY11 14.0 4.1 17.9 9.4 4.2 1.1 8.8 33.2

Acquired Fortis Malar in February 2008

Revenue growth: 32% EBITDA growth: 111%

81.7 61.7 64.3 66.3 69.9

89% CAGR

90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 -

8.6

12.8

12.7

13.2

18.1

Q4 FY09

Q1 FY10

Q2 FY10

Q3 FY10
EBITDA

Q4 FY10

Operating Revenue

Operating Revenue

Average FY2007 Monthly Revenue ` 18.3 Cr. 2,082 330 90% 7 Days 10%

Now ` 26.0 Cr. 1,397 276 90% 5.2 Days 17%

2004 Fortis Noida Jessa Ram Delhi

2005 Escorts Delhi Escorts Faridabad Escorts Amritsar Escorts Raipur

2006 La Femme Delhi Khyber Srinagar Hiranandani Vashi

2007 Malar Chennai Escorts Jaipur

2008

2009 Wockhardt Mumbai Wockhardt Bangalore Wockhardt Calcutta

2010

Medical Staff Total Ops Beds

Key facilities and locations added

Clinique Darne Mauritius Apollo RM Bangalore

Fortis Shalimar Bagh Fortis Anandpur, Kolkata Fortis Mulund (expansion)

Occupancy ALOS Operating EBITDA

ARPOB

` 0.67 Cr.

` 1.21 Cr.

19

Fortis Approach to Industry Challenges

Key Challenges Focus on CME, research and accolades Aligned compensation structure, ESOPs Foothold in more than one hospital Nursing school and DNB programs Competence to strike deals, invest in green field hospitals, acquire hospitals, and O&Ms High start up costs and capex requirements Partnership with government for PPP projects Centralising of common services to achieve economies of scale Concept and designed to reduce capex per bed Innovative models to finance medical equipments Lack of standardization / quality Technological obsolescence Accreditation of hospitals, laboratories, and blood banks by national and international authorities Focus on best practices and continuous review by a strong team Innovative tie ups Center of Excellence Approach helps recycle technology around the network Centralized Specialist group owning technologies across network Medical Advisory Board; Accreditation committee at each hospital Fortis Approach Shortage of skilled medical professionals

Maintaining medical ethics

Executive counsel taking call on key hospital discussions Code of Ethics; Whistle blower policy

20

Agenda

A. Healthcare Industry in India

B. Company Overview

C. Recent Developments

D. Financials

21

Wockhardt Acquisition
Leading healthcare providers with 17 super speciality hospitals in metros and tier-II cities Provide super speciality care in Cardiac, Neuro, Ortho, Minimal Access Surgery and Women Care Through the deal, Fortis added: 1,902 beds to capacity for ~US$ 190mn 10 hospitals in 3 cities Mumbai (2), Kolkata (3) & Bengaluru (5) Talent pool of c. 50 doctors and c.1300 paramedics Financially attractive at 9.5x EBITDA and Cost per bed at US$0.12mn Nursing colleges (450 candidates) 2 JCI accredited hospitals 2 new hospitals at Yeshwantpur, Bengaluru (120 beds) and Anandpur, Kolkata (414 beds) - to be operational in next 10-12 months. Kolkata facility operationalised in Sept 2010 The combined network to provide one of the largest Cardiac, Ortho and Neuro healthcare
Kolkata

Cunningham Road, Bengaluru

BG Road, Bengaluru

Mulund, Mumbai

services

22

Recent Deals
O&M agreement with O.P. Jindal Hospital, Raigarh, Chhattisgarh 100 bed multi-speciality secondary care hospital Located within the campus of Jindal Steel & Power Limited

Reverse O&M agreement with Vivekanand Hospital Moradabad, Uttar Pradesh 150 bed multi-speciality secondary care hospital Located in Moradabad, North Eastern UP, the hospital was set up under a Trust in 1985. Constructed over a 6.3 acre land with a built up area of 198,000 sq ft Premises also house a Nursing College and a Nursing School

O&M agreement with East Coast Hospital in Pondicherry 100 bedded facility with a plan to expand it to a 250 bed facility To be operational by Q1FY12

Reverse O&M agreement with Lifeline Hospital, Alwar, Rajasthan

100 bedded facility with a plan to expand it to a 150 bed facility

Set up in 2005 by Vinayak Healthcare Pvt Ltd, promoted by a Doctor and a group of businessmen Constructed over a 3 acre plot with a built up area of 100,000 sq ft

23

Upcoming Greenfield Hospitals in India

No. Location Beds Area & Land Ownership Date of Commencement Estimated Capex (INR Cr) Status Interior work, installation of utility equipment & external devlpt. underway. Medical equipment under order Rs 210 Cr has been spent till Dec10. Approval from govt. authorities received; design work underway Medical equipment have been ordered Facility will be launched in Q1FY12 Civil and interior work near completion Construction in full swing. Casting of columns in progress Project on schedule Approval from govt. authorities awaited CLU permission awaited from authorities Construction work underway

1.

Gurgaon

450**

11 Acres, Owned

Q2 FY12

325

2.

Ludhiana 2

75

60,000 sq ft. B. Lease

Q4 FY 12

20

3.

Kangra

100

37,000 sq. ft., B. Lease

Q1 FY12

24

4.

Ludhiana 1

200

1,55,000 sq. ft., B. Lease

Q4 FY12

50

5.

Ahmedabad

200

1,55,000 sq. ft., B. Lease

Q1 FY13

50

6. 7.

Gwalior Peenya, Bangalore Total

200 120 1,345

2.5 Acres, L. Lease ~70000 Sq ft; B. Lease

Q2 FY13 Q3 FY12

72 18 559

** Only for Phase 1, total size of the project is 1000 beds

24

Agenda

A. Healthcare Industry in India

B. Company Overview

C. Recent Developments

D. Financials

25

Financials: A Snapshot of Network Revenues

INR Cr.

1,600 1,400

1,318 1,214
290

1,200

CAGR: 72%
1,000 800

225

772 649
113 1,067

600 400 200 0

567
42

101 989 659

308
12 525 548

81
6 75 FY05

296

FY06

FY07 Owned

FY08

FY09 Managed

FY10

9MFY11

26

Growth Driven by Steadily Increasing Occupancy Rates Leading to Improving Operating Parameters
Occupancy
80% 74% 70% 63% 60% 50% 40% FY08 FY09 FY10 H1FY11 68% 75%

Average Revenue Per Operating Bed (Rs. Million)

8.10 7.65 8.30 8.30

Average Length of Stay (days)

4.30

4.20

4.10

4.10

FY08

FY09

FY10

H1FY11

FY08

FY09

FY10

H1FY11

Does not include data for new hospitals

27

Significant Increase in No. of Procedures with a Focus on Key Specialty Areas (Cardiac, Neuro, etc.)
Cardiac
40,000

Ortho
39,651
3,662 8,000

7,083 5,016
4,553 2,872 2,530

29,475
30,000 20,000 10,000 0 2,802 15,206 6,011 5,456 FY09 CTVS & Pediatrics PTCA CAG 8,214 6,924 20,851

+35%

6,000 4,000 2,000

+41%

2,144 0 FY09 Others Knee Replacements

FY10

FY10 THR & Others

Neuro
4,000 3,040 3,000 2,000 1,000 0 FY09 FY10 50,000

Dialysis
46,993

+125%

40,000 29,214 30,000

+61%

1,352

20,000 10,000 0 FY09 FY10

28

No. of Major Procedures 9MFY11

Cardiac
40,000 30,000 20,000 10,000 0

Ortho
37,169
3,095
8,000

7,611 +59% 4,796

2,984 2,775 4,836

27,137
2,552 14,210 7,500 5,666 4,709 9MFY2010 CTVS & Pediatrics PTCA 7,214 19,360

+37%

6,000 4,000 2,000

1,812 0 9MFY2010 Knee Replacements

9MFY2011 CAG Others

9MFY2011 THR & Others

Neuro
4,000 3,000 1,895 2,000 20,000 1,000 0 9MFY2010 9MFY2011
*The data shown above is on Network Hospitals excluding the numbers of Clinique Darne - Mauritius

Dialysis
3,718 50,000

41,754 32,861

+96%

40,000 30,000

+27%

10,000 0 9MFY2010 9MFY2011

29

Scale Benefits Driving Profitability: Consolidated P&L

INR Cr.

Particulars Operating Revenue Other Income # Total Income Direct Costs Employee Costs Other Costs EBITDA Finance Costs Depreciation & Amortization PAT

FY10 937.9 50.1 988.1 262.7 195.0 339.8 190.6 57.3 59.9 69.5

(%) 100.0% 5.3%

FY09 630.7 28.5 659.2

(%) 100.0% 4.5%

Growth (%) 48.7% 75.7% 49.9%

28.0% 20.8% 36.2% 20.3% 6.1% 6.4% 7.4%

189.5 147.4 208.1 114.2 43.7 48.7 20.8

30.1% 23.4% 33.0% 18.1% 6.9% 7.7% 3.3%

38.6% 32.3% 63.3% 66.9% 31.2% 23.0% 233.7%

EPS for the period (INR)

2.61

0.92

#Other income includes Foreign Currency translation gains, interest income and miscellaneous income

30

Summary Consolidated Profit and Loss

Q3FY11 Total Particulars Operating Revenue Other Income * Total Income Direct Costs Employee Costs Other Costs EBITDA Finance Costs Depreciation & Amortization PAT after minority interest and share in associates Operating EBITDA (INR Cr.) 371.4 36.9 408.4 97.6 65.6 154.3 90.8 21.1 26.9 % 91.0% 9.0% 100.0% 23.9% 16.1% 37.8% 22.2% 5.2% 6.6% Base Operations (INR Cr.) 1,067.2 56.5 1,123.7 285.0 195.6 433.7 209.5 46.9 71.7 % 95.0% 5.0% 100.0% 25.4% 17.4% 38.0% 19.2% 4.2% 6.4% 9MFY11 Parkway (INR Cr.) 364.9 364.9 159.0 205.9 180.4 Total (INR Cr.) 1,067.2 421.4 1,488.6 285.0 195.6 592.7 415.4 227.3 71.7

34.5
53.9

8.4%
14.5%

77.0
153

6.9%
14.3%

18.0

95.0

* Other Income constitutes mainly interest income from deployment of surplus funds

31

9MFY11 Comparative Financials Base Operations

Particulars Operating Revenue Direct Costs Employee Costs Other Costs * Operating EBITDA Other Income Finance Costs Depreciation & Amortization PAT after minority interest and share in associates EPS for the Period** (Rs) 9MFY11 (INR Cr.) 1,067.2 285.0 195.6 433.7 153.0 56.5 46.9 71.7 77.0 2.51 % 100.0% 26.7% 18.3% 40.6% 14.3% 5.3% 4.4% 6.7% 7.2% 9MFY10 (INR Cr.) 608.4 171.9 132.7 210.3 93.5 15.4 25 36.9 42.3 1.70 % 100.0% 28.3% 21.8% 34.6% 15.4% 2.5% 4.1% 6.1% 7.0% Growth (%) 75.4% 65.8% 47.4% 106.2% 63.6% 266.9% 87.5% 94.3% 82.0%

*Increase in other costs is primarily due to doctor engagement model at newly acquired hospitals **EPS calculated on reported consolidate net profit of Rs 95 Cr during 9MFY11

32

Hospital wise Revenue & EBITDA Q3FY11

12% 51% 31% 24% 24%
INR Cr.

80 69.9 70

78.0

18%

19%

60

14%
55.8

50 42.7 44.7 35.5 29.7 25.7 30.4 29.9 31.5

19%

17%

40

35.9

30

22%

26%

25%

20

30%

17.3

21.4 16.7

20.6 13.9 13.7

14%

19%

27%

20%

0 Delhi Mohali Noida Vasant Kunj Q3 FY10

The above chart depicts revenue of hospitals managed by Fortis healthcare and its subsidiaries. *FY10 revenues are based on unaudited information available with the company

Malar

Jaipur Q3 FY11

BG Road*

Mulund*

CG Road*

33

10%

7%

10

18% 18%

22%

14%

26%

14%

Balance Sheet as at December 31, 2010

Balance Sheet Shareholders Equity* Foreign Currency Convertible Bonds (FCCBs) Debt Total Capital Employed Goodwill Net Fixed Assets (including CWIP of Rs 244 Crore) Investments - in Associates - Deposits (including Inter-Corporate Deposits) 37 1,633 INR Cr. 3,300 447 868 4,615 863 1,780

- Liquid and Mutual Funds

Cash and Bank Balances Net Current Assets** Total Fixed Assets

98
90 114 4,615

Net Cash Surplus***

* Shareholders Equity is inclusive of Revaluation Reserve and Minority Interest ** Net Current Assets includes Deferred Tax Assets *** Net Cash Surplus is arrived after clubbing ICD, Cash & Bank Balances and Mutual Funds subtracted by the amount of loans outstanding (excluding FCCBs)

953

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Summing Up
Healthcare Sector poised to grow
Healthcare Sector Growth led by Lifestyle Diseases and Insurance Penetration Government recognizes the need to partner with Private Sector Healthcare expenditure estimated to be 6% of GDP by 2012 & employ around 9 million people

One of the largest private healthcare delivery player in India Aggressively grown from 1 hospital in 2001 to a network of 53* hospitals in 2011 with ~ 8,000* beds Fortis Healthcare Leadership in Cardiac, Neurology and Orthopedics Evolved the Business Model and high level of Brand Equity Proven ability to acquire, integrate and turn around Providing attractive value propositions to various segments of market

* Estimated number of hospitals and beds is including hospitals under projects stage

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THANK YOU

Fortis Healthcare Limited

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