MedPlus Health Services Limited

February 2, 2024

The Listing Department The Listing Department

BSE Limited National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex,
Dalal 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 December 31, 2023

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

Regulations, 2015 and in furtherance to our letter dated January 20, 2024, please find enclosed
herewith the presentation for Earnings Call with Analysts/Institutional Investors on un-audited
Financial Results for the quarter ended December 31, 2023 scheduled to be held on Monday,
February 5, 2024 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

Digitally signed by MANOJ
MANOJ KUMAR KUMAR SRIVASTAVA
SRIVASTAVA Date: 2024.02.02 17:37:06
+05'30'

Manoj Kumar Srivastava

Company Secretary & Compliance Officer
FCS 7460

Enclosed: a/a

040-6724 6724
Regd. off. H. No: 11-6-56, Survey No: 257 & 258/1, Opp: IDPL Railway Siding Road, Moosapet, Kukatpally, Hyderabad – 500037, Telangana, India
CIN No: L85110TG2006PLC051845 I Website: www.medplusindia.com I Email:[email protected]
THIRD QTR FY2024

INVESTOR PRESENTATION
Corporate information
Performance update
Financial results

Feb 2, 2024
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
 The MedPlus Story
Overview

Network of 4,200+ Stores Spread across 10 States,

Leadership position in 4 out of top 6 cities in India

Cluster based expansion

strategy: ‘Continue
2nd Largest Pharma Retailer deeper penetration Vs.
Wider reach’

Well curated SKU’s at Outlets and 22K+ Employees

47K SKU’s across warehouses

Strong Unit economics with

ROCE of 50%+

Serving the Customers of 600+ Cities

~1,900 Outlets which are < 24M, upon maturity

will be P&L accretive

Q3FY24 2
Results Update

Q3 FY2024 Highlights (1/2)

₹ 14,415m Revenue ₹ 3,187m Gross Margin

• ₹ 2,512m increase over Q3FY23 • 22.1% gross margin (0.5% qoq)
21.1% yoy
• ₹ 329m increase over Q2FY24. 2.3%
qoq
• 0.7% increase in private label over
Q3FY23

144 Store Net Additions Stores > 12 months

• 164 gross additions • 12.9% revenue growth over Q3FY23
• 89 net additions beyond Tier-One • 9.6% Store Level EBITDA margin
• 4,233 stores as on 31-Dec-23 • 52.5% Store Level Operating ROCE

₹ 505m Pharmacy Operating ₹ 412m Operating Cash Flow

EBITDA • 88.4% OCF/ Operating EBITDA
• 3.6% Operating EBITDA margin in • ₹ 1,986m closing cash balance
Pharmacy (increased by 40 bps qoq)
• ₹ 466m Company Operating EBITDA

Q3FY24 3
Results Update

Q3 FY2024 Highlights (2/2)

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

14,086 14,415 1,016
22.6% 953 955
12,530 12,843
Consolidated

831 807
11,903 22.2% 22.1%

21.6% 3.1% 3.2% 3.2%

2.9%
21.3% 406 466
371 2.3% 410
291

13,885 14,203 1,055

22.0% 994 985
12,382 12,690 21.7% 1000
11,765 21.3% 860
846
Pharmacy

20.8% 3.6% 3.6%

3.5% 800
20.1% 3.2%
447 2.7% 505
406
440 600
343
400

Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24
200
Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24
Operating EBITDA ₹m

Operating EBITDA margin

Q3FY24 4
 Pharmacy Retail is Most Attractive Segment of Indian Retail
Overview

High Growth Profile Amongst Various Indian Growth Rate To Continue in Foreseeable Highly Replicable Model
Retail Formats Future on Back of High Unorganized Salience Given Best in Class Return Metrics

Avg Revenue per Sq.ft p.a (INR 000’s)

Pharmacy

25% 10% 90%

140
50
24 20
Grocery
5% 95%
21%

Jewellery
32% 68%
ROCE
14%

50%
40%
Apparel 33% 67% 35%
25%
16%

Organised Un organised

Q3FY24 5
 Cluster Based Network Enables Profitable Omni-Channel Service
Overview

Stores As On Dec-23 Strong Cluster Based Network

Strong network of 4,233 stores across Metros, Tier-One, Tier-Two and beyond.
4,233
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’ 4,233 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 31-Dec-23 we have 2 stores in
Puducherry
Tier-Two Tier-Three+

Q3FY24 6
 Scale Allows A Large Private Label Basket: 1000+ SKUs
Overview

Pharma
Over 783
products covering
Chronic, Acute,
OTC & Other
Pharmaceutical
products

Non-Pharma
Over 313
products
covering,
packaged food,
baked goods, dry
goods, cleaning
products,
cosmetics and
toiletries

Q3FY24 7
 Poised for Growth
Overview

Key Pillars Of Growth

MedPlus has an established base of operations in 10 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 1000+ 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

Q3FY24 8
Results Update

676 Stores Added In Last 12 Months

As On Dec-22 As On Mar-23 As On Dec-23

Presence 3,557 3,822 4,233

We are present in stores stores stores
10 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
600+ cities 1. Stores in Puducherry are not represented in the maps above. As on 31-Dec-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+

Q3FY24 9
Results Update

144 Stores Added In Last Quarter

Q3 FY24 Openings Q3 FY24 Closures Q3 FY24 Closure Reasons

6.3
We opened 164
164 20
stores in Q3FY24. stores stores 4
There were 20
closures

1.9 2

14

5.8

Relocation Franchisee withdrawn

Others

Average age (years)

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

Q3FY24 10
Results Update

Young Store Network: 18% Less Than 12 Months Old

Pharmacy: Count Pharmacy: Age Structure of Stores1

Stores 3,557 3,822 3,975 4,089 4,233
21% 18%
Openings 144 30% 27%
4,000 114 32%
Maintaining an 153
265
increasing pace of 3,500
229
store openings 27%
26%
3,000 19% 22%
17%
2,500

2,000 3,975 4,089

3,822
3,557
Age Structure 3,328
1,500
c.45% stores are 53% 55%
51% 51% 51%
less than 24 1,000
months age
500

0
Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23
Openings 246 284 168 139 164 Year 2+ Year 2 Year 1
Closures 17 19 15 25 20
1. Store age, as on end of period
Net Additions 229 265 153 114 144

Q3FY24 11
Results Update

Profitable Older Stores: 12+ Months

Store Level Revenue Growth1 Store Level EBITDA Margin Store Level Operating ROCE2,3
10.3% 60.8% 60.5%
16.0% 10.0% 9.6%
15.3% 15.7% 9.0% 52.5%
8.9% 49.1% 50.6%
12.9%
10.9%

Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24

Operating EBITDA, ₹m Operating EBITDA Margin

588
537 532
490 4.9% 5.0%
452 4.5%
4.0% 4.2%

Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24

1. Growth is yoy 2. See Glossary for definition 3. Annualized by multiplying the quarterly computation by 4
Q3FY24 12
Results Update

Revenue Mix: Increasing Share Of Private Label

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

2.4% 2.2% 2.3% 2.7% 2.9%
Product mix 5.1% 5.7% 5.6% 6.1% 6.3% 10% 10% 11% 11% 12%
Trend of 8.6% 8.4% 7.8% 7.9% 8.1%
increasing share 10.7%
11.0% 10.9% 10.9% 11.8% 23% 23% 23% 23% 23%
from Private
Label continues
11% 12% 12% 13% 13%

Location mix
Maintaining trend 72.9% 72.8% 73.6% 72.4% 70.9%
of growth beyond 56% 56% 54% 53% 52%
Metro and Tier-
One

Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24

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
Q3FY24 13
Results Update

Omni-channel: Profitable With Negligible Acquisition Costs

Channel Revenue Channel Delivery Pincodes1 and Delivery Hubs

820 6.0% 100%
Hubs 583 630 618 619 619
806
Home Delivery
Omni-Channel 795
800
Our online 5.9%
80%
presence grows 780 2,419 2,461
on the back of 2,273
5.8% 2,158
our rapid store 760 2,014
additions 749 60%

740 5.7%

715 40%
720
709 5.6%

700
20%
5.5%
680 Store Pickup

660 5.4% 0%

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

Q3FY24 14
Results Update

Income Statement

Snapshot of Income Statement, ₹m

Q3FY24 vs. Q3FY24 vs. 9m FY24 vs.
Q3FY23 Q2FY24 Q3FY24 9m FY23 9m FY24
Q3FY23 (yoy) Q2FY24(qoq) 9m FY23 (yoy)
Revenue 11,903.1 14,085.9 14,414.7 21.1% 2.3% 33,045.9 41,343.6 25.1%
Gross Margin 2,638.1 3,044.9 3,187.3 20.8% 4.7% 7,168.8 8,966.3 25.1%
Gross Margin 22.2% 21.6% 22.1% 21.7% 21.7%
Expenses 2,267.6 2,635.0 2,721.3 20.0% 3.3% 6,294.1 7,799.5 23.9%
Operating EBITDA 370.5 409.9 466.0 25.8% 13.7% 874.7 1,166.7 33.4%
Operating EBITDA 3.1% 2.9% 3.2% 2.6% 2.8%
Rental Expenses 461.1 532.6 535.6 16.1% 0.6% 1,286.6 1,568.3 21.9%
ESOP Expenses (54.2) (42.0) (33.7) -37.9% -19.8% (178.4) (117.7) -34.0%
Interest Income 53.5 54.0 47.8 -10.7% -11.6% 181.3 160.3 -11.5%
EBITDA 830.8 954.6 1,015.7 22.2% 6.4% 2,164.2 2,777.6 28.3%
EBITDA 7.0% 6.8% 7.0% 6.5% 6.7%
Depreciation &
(457.9) (554.7) (571.1) 24.7% 3.0% (1,257.6) (1,650.0) 31.2%
Amortization
Finance Costs (210.8) (235.4) (245.0) 16.2% 4.1% (607.6) (713.1) 17.4%
PBT 162.1 164.4 199.6 23.1% 21.4% 299.0 414.5 38.6%
PAT 133.8 145.4 137.0 2.4% -5.8% 235.4 320.1 36.0%
PAT 1.1% 1.0% 1.0% 0.7% 0.8%

Q3FY24 15
Results Update

Income Statement: Business Segments

Snapshot of Income Statement, ₹m

Q2FY24 Q3FY24
Pharmacy Pharmacy
Diagnostic Others Total Diagnostic Others Total
Retail Retail
Revenue 13,884.8 181.5 19.5 14,085.9 14,203.5 196.0 15.2 14,414.7
COGs and Expenses 13,444.6 210.6 20.5 13,675.7 13,698.6 230.2 19.7 13,948.5
Operating EBITDA 440.2 (29.0) (1.2) 409.9 504.9 (34.1) (4.8) 466.0
Operating EBITDA 3.2% -16.0% -6.3% 2.9% 3.6% -17.4% -31.4% 3.2%
Rental Expenses 532.6 535.6
ESOP Expenses (42.0) (33.7)
Interest Income 54.0 47.8
EBITDA 954.5 1,015.7
EBITDA 6.8% 7.0%

Q3FY24 16
Results Update

Operating EBITDA Deep Dive

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

Operating
EBITDA

Q3FY24 17
Results Update

Balance Sheet

Snapshot of Balance Sheet, ₹m

Dec-22 Mar-23 Sep-23 Dec-23

Assets
Non Current Assets
PPE and CWIP 2,759.8 3,122.4 3,153.1 3,172.0
Intangible assets 476.7 489.9 505.2 509.1
Right-of-use asset 7,511.8 8,022.0 8,427.6 8,542.6
Others 1,648.5 1,525.7 1,674.6 1,691.7
Total Non Current Assets (A) 12,396.8 13,160.0 13,760.5 13,915.4
Current Assets
Inventories 10,869.1 11,440.9 12,749.2 13,171.9
Cash 3,187.2 2,874.8 2,189.0 1,985.9
Others 799.7 491.5 675.4 711.3
Total Current Assets (B) 14,856.0 14,807.2 15,613.6 15,869.1
Total Assets (A + B) 27,252.8 27,967.2 29,374.1 29,784.5
Equity and Liabilities
Total Equity 14,592.9 14,911.8 15,227.1 15,458.1
Share application pending allotment 10.0 - - -
Other non current liabilities 7,885.3 8,289.6 8,699.7 8,904.6
Borrowings 2.3 - - -
Trade payables 2,851.2 2,601.5 2,997.3 3,005.5
Other current liabilities 1,911.1 2,164.4 2,450.1 2,416.3
Total Equity and Liabilities 27,252.8 27,967.2 29,374.1 29,784.5

Q3FY24 18
Results Update

Capital Productivity

Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed
NWC (days) 9.4%
63 64 66 64 66
8.8% 8.9%

7.7%
Year 1 Stores 49
47 46 46
47
111 days
inventory (on
Year 1 stores
37 37 38 4.4%
revenue) 35
35
Stores Older
Than 12 months
22
42 days inventory 19 19 20 19
(on revenue of
stores older than
12 months)
Dec-22 Mar-23 Jun-23 Sep-23 Dec-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

Q3FY24 19
Results Update

Cash Management

Cash Management, Q3FY24, ₹m

Operating
Cash Flow
₹ 412m

Free Cash Flow

₹ -286m

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 ₹ 287m from fixed deposit
Q3FY24 20
Appendix
A. Board and key management
B. Glossary

21
 A. Board and Key Management
Appendix

Committed Board Experienced Management Team

Gangadi Madhukar Reddy Anish Kumar Saraf Dr. Bhaskar Reddy Sujit Mahato Lakshman Kandarpa
Founded MedPlus and has MD at Warburg Pincus Chief Operating Officer and Chief Financial Officer Chetan Dikshit
Chief Retail Officer,
led it since inception India Whole-Time Director Chief Strategy Officer
Optival

Hiroo Mirchandani Madhavan Ganesan Murali Sivaraman Venugopal Siripuram Kandasamy Vairaperumal
Senior business leader in Senior business leader. Senior business leader. 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

Non-Executive Director

Whole-Time Director

22
 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
GMV Gross Merchandising Value ( GMV = MRP- GST)
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)

23
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]