MedPlus Health Services Limited

August 7, 2023

The Listing Department The Listing Department

BSE Limited National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kuria Complex,
Dalai Street, Fort, Bandra (East), Mumbai 400 051
Mumbai 400 001 Symbol: MEDPLUS
Scrip Code: 543427

Dear Sir/Madam,

Sub: Presentation for Earnings Call with Analysts/Institutional Investors on un- audited Financial
Results for the quarter ended June 30, 2023

Pursuant to the Regulation 30 of SEM (Listing Obligations and Disclosure Requirements)

Regulations, 2015 and in furtherance to our letter dated July 15, 2023 please find enclosed
herewith the presentation for Earnings Call with Analysts/institutional Investors on unaudited
Financial Results for the quarter ended June 30, 2023 scheduled to be held on, August 8, 2023 at
16:00 Hrs.

Kindly take the same on record. The same is being uploaded on the website of the Company.

Thanking You
Yours faithfully

For MedPlus Health Services Limited

rr-c .
i "C
Manoj Kumar Srivastava
Company Secretary & Compliance Officer G°
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HYD -RAI3ND
FCS 7460

Enclosed: a/a

Regd. Off: H.No: 11-6-56, Sy. No: 257 & 258/1, Opp: IDPL Railway Siding Road, Moosapet, Kukatpally, Hyd-500 037, IS, India. © 040-6724
a : 040-6724 6724
CIN No: L851101G2006PLC051845 I Website: www.medplusindia.com I Email: [email protected]
FIRST QUARTER FY2024

INVESTOR PRESENTATION
Corporate information
Performance update
Financial results

AUG 2023
Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by MedPlus Health Services
Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or
invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or
binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering
document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but
the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth,
accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all
inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any
omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business
prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of
future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These
risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various
international markets, the performance of the healthcare industry in India and world-wide, competition, the company’s ability to
successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes
and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market
risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially
and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any
forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties
included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements
and projections.

1
Executive Summary

Executive Summary: Q1FY24

1 Revenue Growth 4 Stable operating performance of mature

Revenue has grown by 29.2% vs Q1 FY23 stores (>12m)
Operating EBITDA: ₹ 452mn
Store Level EBITDA margin: 8.9%
Store Level Operating ROCE: 49.1%
2 Accelerated store expansion
Addition of 153 stores in Q1FY24 5 EBITDA
Beyond Tier One cities : 87 Consolidated Operating EBITDA of ₹ 291mn
Pharmacies Operating EBITDA of ₹ 343mn

3 Strong unit economics 6 Diagnostics pilot on track

58% of stores opened in 6 months period from Our pilot in Hyderabad is progressing well with
July 2022 – December 2022, achieved break- four full-service centers, seven level 2 centers
even within 6 months of operations. As a and 100+ own Collection Centers
cohort, all the stores combined achieved
break-even in just 4 months

Q1FY24 2
 The MedPlus Story
Overview

MedPlus caters to
the healthcare and 2006 17 years c.931m+
household needs of
Started in Hyderabad A Trusted Brand Bills Cut Since Inception
the neighborhoods
we operate in

We are omni- 3,975 stores 7 581

channel: Digital and
Stores States Cities
neighborhood stores

MedPlus has the

second largest
pharmacy network 21k+ 46k+ SKUs 10
nationally, with
Employees Across Pharma and Regional Warehouses
leadership position Non-Pharma
in the markets we
operate
1. Information as on 30-June-23

Q1FY24 3
 MedPlus – Leader In The Attractive Pharmacy Space
Overview

Fastest Growing Retail Segment Large Headroom to Grow

30%
Pharmacy
25%
25% Food & Grocery
22% Jewellery
21%
20% Apparel
16% 16%
0% 20% 40% 60% 80% 100%
15% 14%
Organized Retail Unorganized

10% 8%
Better Unit Economics
5% Pharmacy: High revenue per Pharmacy: Highest steady-
sqft of store area state store level ROCE

0% Avg. Revenue
ROCE
per sq.ft. p.a.
Pharmacy ₹ 30-50k 45-50%
Food & Grocery c. ₹ 24k 30-35%
Jewelry c. ₹ 140k 20-25%
Apparel c. ₹ 20k 25-40%
Food Services c. ₹ 26k 25-35%
Retail market (Organized) CAGR, FY15-FY20 CAGR, FY20-FY25E

1. Retail segment of the “Pharmacy & Wellness” market Source: Technopak Advisors (2021). Pharmacy Retail in India

Q1FY24 4
 Cluster Based Network Enables Profitable Omni-Channel Service
Overview

Stores As On Jun-23 Strong Cluster Based Network

Strong network of 3,975 stores across Metros, Tier-One, Tier-Two and beyond.
3,975
stores 2- hour delivery
Ability to service 100% market – acute +
chronic
Online only players cannot match this
As opposed to online only players that
proposition given lack of hyperlocal
largely cater to only chronic segment
store presence
(37%1 of the market)

Lower delivery costs

Lower customer acquisition cost
Because of the hyperlocal presence of
As existing stores act as branding sites
MedPlus’ 3,975 stores

1. For 2020; Proportion of domestic pharmaceutical market. Technopak Advisors (2021). Pharmacy Retail in
India
Metro Tier-One
2. Stores in Puducherry are not represented in the map above. As on 30-Jun-23 we have 2 stores in
Puducherry
Tier-Two Tier-Three+

Q1FY24 5
 Scale Allows A Large Private Label Basket: 1300+ SKUs
Overview

Pharma
Over 1,066
products covering
Chronic, Acute,
OTC & Other
Pharmaceutical
products

Non-Pharma
Over 293
products
covering,
packaged food,
baked goods, dry
goods, cleaning
products,
cosmetics and
toiletries

Q1FY24 6
 Poised for Growth
Overview

Key Pillars Of Growth

MedPlus has an established base of operations in seven key states. Therefore, we will:
Growth in existing clusters and • Further grow in cities where we have market leadership. Metro and Tier - One followed
A by Tier - Two and beyond
develop new clusters • Replicate our leadership in markets where we have entered but yet to attain market
leadership

MedPlus has built an extensive in-house technology platform. On the back of that, we will:
Leverage our leadership in • Expand our target addressable market via omni-channel offering
B
omni-channel • Increase retention via omni-channel
• Operationally extend <2 hour delivery to more locations

Expand share of private MedPlus has a curated private label range of 1300+ SKUs. From these, we will:
• Increase private label contribution in pharma products, especially in sub-chronic and
C label: Higher margins and chronic ailments
higher share of wallet • Increase private label contribution in FMCG products, including nutrition and wellness

Q1FY24 7
Results Update

Q1 FY2024 Highlights (1/2)

₹ 12,843m Revenue ₹ 2,734m Gross Margin

• ₹ 2,906m increase over Q1FY23 • 21.3% gross margin (0.1% yoy, -1.3%
29.2% yoy qoq)
• ₹ 313m increase over Q4FY23. 2.5%
qoq
• 0.6% increase in private label over
Q1FY23

153 Store Net Additions Stores > 12 months

• 168 gross additions • 16.0% revenue growth over Q1FY23
• 87 net additions beyond Tier-One • 8.9% Store Level EBITDA margin
• 3,975 stores as on 30-Jun-23 • 49.1% Store Level Operating ROCE

₹ 343m Pharmacy Operating ₹ 297m Operating Cash Flow

EBITDA • 102.2% OCF/ Operating EBITDA
• 2.7% Operating EBITDA margin in • ₹ 2,499m closing cash balance
Pharmacy (decrease by 90 bps qoq)
• ₹ 291m Company Operating EBITDA

Q1FY24 8
Results Update

Q1 FY2024 Highlights (2/2)

Revenue, ₹m Gross Margin Operating EBITDA EBITDA, ₹m

12,530 12,843 22.6% 953
11,903
11,206 22.2%
Consolidated

831 807
9,937 21.7% 706
3.2% 628
21.3% 3.1%
21.2%
2.5% 371 406
2.2% 2.3%
283 291
222

994
12,382 12,690 22.0%
11,765 21.7% 860
11,100 21.4% 846
Pharmacy

21.0% 745
9,850 3.6% 669
3.5%
20.1% 3.0%
2.8% 447 2.7%
406
336 343
274

Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24

Operating EBITDA ₹m

Operating EBITDA margin

Q1FY24 9
Results Update

995 Stores Added In Last 12 Months

As On Jun-22 As On Mar-23 As On Jun-23

Presence 2,980 3,822 3,975

We are present in stores stores stores
key 7 states,
accounting for
c.38.4% of India’s
population2.

The key urban

centers are:
Bangalore,
Chennai,
Hyderabad,
Kolkata, Mumbai,
Nagpur, Pune,
Visakhapatnam

We are present in
581 cities 1. Stores in Puducherry are not represented in the maps above. As on 30-Jun-23 we have 2 stores in Puducherry
2. Census of India (2011)
3. Color index for pie-chart as below:
Metro Tier-One Tier-Two Tier-Three+

Q1FY24 10
Results Update

153 Stores Added In Last Quarter

Q1 FY24 Openings Q1 FY24 Closures Q1 FY24 Closure Reasons

We opened 168
168 15
stores in Q1FY24. stores stores
There were 15
closures 6
7.9 7.1

4.7

Relocation Franchisee withdrawn

Others

Average age (years)

1. Color index for pie-chart as below:
Metro Tier-One Tier-Two Tier-Three+

Q1FY24 11
Results Update

Young Store Network: 27% Less Than 12 Months Old

Pharmacy: Count Pharmacy: Age Structure of Stores1

Stores 2,980 3,328 3,557 3,822 3,975

Openings 4,000 153 30% 30% 27%

33% 32%
265
Maintaining an 3,500
229
increasing pace of
348
store openings 3,000
232 15% 22%
16% 17% 19%
2,500

2,000
3,822
3,557
3,328
Age Structure 1,500 2,980
2,748
c.50% stores are 55% 51% 51%
51% 51%
less than 24 1,000
months age
500

0
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
Openings 252 362 246 284 168 Year 2+ Year 2 Year 1
Closures 20 14 17 19 15
1. Store age, as on end of period
Net Additions 232 348 229 265 153

Q1FY24 12
Results Update

Profitable Older Stores: 12+ Months

Store Level Revenue Growth1 Store Level EBITDA Margin Store Level Operating ROCE2,3
15.3% 16.0% 10.3% 60.0% 60.8% 60.5%
9.7% 10.0% 55.9%
9.5%
8.9% 49.1%
10.0% 10.9%

-8.7%
Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24

Operating EBITDA, ₹m Operating EBITDA Margin

537
490
433 452
4.9% 5.0%
4.6%
361 4.3%
4.0%

Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24

1. Growth is yoy 2. See Glossary for definition 3. Annualized by multiplying the quarterly computation by 4
Q1FY24 13
Results Update

Revenue Mix: Increasing Share Of Private Label

Revenue Mix: By Product Category Revenue Mix3: By Location of Stores

2.4% 2.2% 2.4% 2.2% 2.3%
Product mix 4.6% 5.0% 5.1% 5.7% 5.6% 9% 9% 10% 10% 11%
8.1% 8.9% 8.6% 8.4% 7.8%
Trend of
increasing share 10.5% 10.7% 22% 22%
10.8% 11.0% 10.9% 23% 23% 23%
from Private
Label continues
10% 11% 11% 12% 12%

Location mix
Maintaining trend 74.4% 73.1% 72.9% 72.8% 73.6%
of growth beyond 59% 58% 56% 56% 54%
Metro and Tier-
One

Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24

B. Pharma B. Non-Pharma PL. Pharma PL. Others Others Metro Tier-One Tier-Two Tier-Three+

1. Prefix of “B” implies Branded, Prefix of “PL” implies Private Label

2. “Others” includes revenue from franchisee, optical, clinics and labs
3. Only revenue from pharmacy stores
Q1FY24 14
Results Update

Omni-channel: Profitable With Negligible Acquisition Costs

Channel Revenue Channel Delivery Pincodes1 and Delivery Hubs

760 6.6% 100%
749 Hubs 391 453 583 630 618
Home Delivery
Omni-Channel 740
6.4%
Our online 2,273
715 80% 2,158
presence grows 720 709 2,014
on the back of 6.2%
1,877
our rapid store 700 1,769
additions 60%
680 6.0%
665
660 5.8%
643 40%
640
5.6%
620
20%
5.4% Store Pickup
600

580 5.2% 0%

Revenue, ₹m Share of Tot. Rev. (RHS) Store Pickup Home Delivery 1. For Online Orders

Q1FY24 15
Results Update

Income Statement

Snapshot of Income Statement, ₹m

Q1FY24 vs. Q1FY24 vs.
Q1FY23 Q4FY23 Q1FY24
Q1FY23 (yoy) Q4FY23(qoq)
Revenue 9,936.5 12,529.8 12,843.0 29.2% 2.5%
Gross Margin 2,103.1 2,830.0 2,734.0 30.0% -3.4%
Gross Margin 21.2% 22.6% 21.3%
Expenses 1,881.4 2,423.8 2,443.2 29.9% 0.8%
Operating EBITDA 221.7 406.2 290.8 31.1% -28.4%
Operating EBITDA 2.2% 3.2% 2.3%
Rental Expenses 401.2 493.2 500.1 24.6% 1.4%
ESOP Expenses (61.8) (42.8) (42.1) -31.9% -1.8%
Interest Income 66.6 96.6 58.5 -12.1% -39.4%
EBITDA 627.7 953.3 807.3 28.6% -15.3%
EBITDA 6.3% 7.6% 6.3%
Depreciation & Amortization (381.0) (558.0) (524.2) 37.6% -6.1%
Finance Costs (198.1) (222.7) (232.7) 17.5% 4.5%
PBT 48.7 172.6 50.5 3.8% -70.7%
PAT 36.8 265.6 37.6 2.3% -85.8%
PAT 0.4% 2.1% 0.3%

Q1FY24 16
Results Update

Income Statement: Business Segments

Snapshot of Income Statement, ₹m

Q4FY23 Q1FY24
Pharmacy Pharmacy
Diagnostic Others Total Diagnostic Others Total
Retail Retail
Revenue 12,382.3 119.3 28.3 12,529.8 12,689.9 139.0 14.1 12,843.0
COGs and Expenses 11,935.3 156.4 31.9 12,123.7 12,346.5 185.1 20.3 12,551.9
Operating EBITDA 447.0 -37.1 -3.6 406.2 343.4 -46.1 -6.5 290.8
Operating EBITDA 3.6% -31.1% -12.9% 3.2% 2.7% -33.2% -45.9% 2.3%
Rental Expenses 493.2 500.1
ESOP Expenses -42.8 -42.1
Interest Income 96.6 58.5
EBITDA 953.2 807.35
EBITDA 7.6% 6.3%

Q1FY24 17
Results Update

Operating EBITDA Deep Dive

Operating EBITDA Bridge: From 12+ Months Stores to Consolidated, ₹m

Operating
EBITDA

Q1FY24 18
Results Update

Balance Sheet

Snapshot of Balance Sheet, ₹m

Jun-22 Mar-23 Jun-23

Assets
Non Current Assets
PPE and CWIP 2,108.1 3,122.4 3,133.2
Intangible assets 476.7 489.9 497.0
Right-of-use asset 6,528.5 8,022.0 8,338.4
Others 1,492.9 1,525.7 1,568.6
Total Non Current Assets (A) 10,606.2 13,160.0 13,537.2
Current Assets
Inventories 9,502.4 11,440.9 11,861.6
Cash 4,666.0 2,874.8 2,499.2
Others 681.9 491.5 611.6
Total Current Assets (B) 14,850.3 14,807.2 14,972.4
Total Assets (A + B) 25,456.5 27,967.2 28,509.6
Equity and Liabilities
Total Equity 14,300.5 14,911.8 14,992.6
Other non current liabilities 6,684.1 8,289.6 8,665.3
Borrowings 63.8 - -
Trade payables 2,415.4 2,601.5 2,618.0
Other current liabilities 1,992.8 2,164.4 2,233.9
Total Equity and Liabilities 25,456.5 27,967.2 28,509.6

Q1FY24 19
Results Update

Capital Productivity

Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed
NWC (days) 9.4%
66 61 63 64 66
8.8%

Year 1 Stores 49
48 47 47 47 6.8%
114 days
inventory (on 5.5%
Year 1 stores 39
revenue) 37 4.4%
36 35 35

Stores Older
Than 12 months
22 23 22
41 days inventory 19 19
(on revenue of
stores older than
12 months)
Jun-22 Sep-22 Dec-22 Mar-23 Jun-23

Inventory: All Stores Inventory: Warehouse Payables

1. Inventory and Payables (as on end of period) computed on period Revenue

2. Annualized by multiplying the quarterly computation by 4

Q1FY24 20
Results Update

Cash Management

Cash Management, Q1FY24, ₹m

Operating
Cash Flow
₹ 297m

Free Cash Flow

₹ -405m

PBT+ Inc. in Taxes Capex Payment Interest Decrease

D&A+ Int. Working of lease received in cash
of Lease Capital liabilities & others and cash
Liability1 equiv.3
+ Others2
1. Computed as per IND AS-116
2. Other non-cash expenses, e.g. ESOP compensation expense
3. Additionally, during the quarter we have withdrawn ₹ 133m from fixed deposit
Q1FY24 21
Appendix
A. Board and key management
B. Glossary

22
 A. Board and Key Management
Appendix

Committed Board Experienced Management Team

Gangadi Madhukar Reddy Anish Kumar Saraf Atul Gupta Dr. Bhaskar Reddy Dr. Surendranath Mantena
Founded MedPlus and has MD at Warburg Pincus Investment partner at COO–Outlet Operations COO–MedPlus Mart
led it since inception India Premji Invest

Hiroo Mirchandani Madhavan Ganesan Murali Sivaraman Sujit Mahato Venugopal Siripuram Kandasamy Vairaperumal
Senior business leader in Senior business leader. Senior business leader. Chief Financial Officer Chief Technology Officer, Head Supply Chain,
healthcare and consumer Over 3 decades covering Over 3 decades in India Optival Optival
sectors retail and technology and international markets

Managing Director & CEO

Independent Non-Executive Director Lakshman Kandarpa

Chetan Dikshit
Chief Retail Officer,
Chief Strategy Officer
Non-Executive Director Optival

23
 B. Glossary
Appendix

Term Description
Metro: Bengaluru, Chennai (and Avadi), Hyderabad, Kolkata (and Howrah), Mumbai (and Thane)
City Categorization
Tier One: Ahmednagar, Baramati, Kharagpur, Nagpur, Nashik, Panruti, Pune, Ranaghat, Vijayawada, Visakhapatnam
(internal)
Tier Two: Hundred and Nine cities, including Adilabad, Aurangabad, Coimbatore, Hooghly, Mysuru, Puri
EBITDA is a non-GAAP financial measure. EBITDA refers to our profit/(loss) for the period, as adjusted to exclude (i) Depreciation
EBITDA
and Amortization Expenses, (ii) Finance Costs and (iii) Tax Expense.
Free Cash Flow (FCF) Operating Cash Flow minus Capex minus Payment of lease liabilities
NWC Net Working Capital. Inventory plus Receivables minus Trade Payables
Operating Cash Flow PBT plus non-cash expenditures minus increase in working capital minus taxes paid
(OCF)
Operating EBITDA Operating EBITDA is non-GAAP financial measure adjusted for one – off expenses like ESOP
Our pharmacy stores. Unless specifically mentioned, this does not include our other outlets (e.g optical, clinic, lab, diagnostics,
Store(s)
collection center)
Store age: Year 1, For the purpose of age categorization, we determine the age as per the last day of the reporting period. For example a store that
Year 2, Year 2+ has completed 24 months at on the last day of the reporting period, is categorized as Year 2+
Store Level Operating ROCE is computed by dividing (Store Level Operating EBITDA minus depreciation, assumed as ₹10k
Store Level Operating
p,m./ store for stores aged < 5 years) with Capital Employed. Capital Employed is computed as store level inventory at the end of
ROCE
the period + capex of ₹ 0.6m per store + refundable security deposit.
Full – Service Center Full-service center refers to Integrated Diagnostic center with Pathology and Radiology (including MRI and CT)
Level 2 center Level 2 center refers to diagnostic center with pathology and Radiology (without CT and MRI)

24
MEDPLUS HEALTH SERVICES LIMITED
www.medplusindia.com

COMPANY SECRETARY
Manoj Kumar Srivastava
[email protected]

INVESTOR RELATIONS
Prasad Reddy/ Tanushree Chaurasia
[email protected]

MEDIA AND PRESS ENQUIRIES

[email protected]