THYROCARENSE30 April 2022

Thyrocare Technologies Limited has informed the Exchange about Investor Presentation

Thyrocare Technologies Limited

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Thyrocare Technologies Limited

Quarterly Presentation – March 2022

Agenda

Setting the baseline - drivers for FY22

Going forward - key strategic drivers and progress

Summary results & Q&A

Revenue breakdown for FY22

Total Pathology Revenue (in crore)

Q1-22

Q2-22

Q3-22

Q4-22

FY22

159.26

168.74

110.20

123.33

561.53

Diagnostic Services (in crore)

Sale of Goods (in crore)

Q1-22

Q2-22

Q3-22

Q4-22

FY22

Q1-22

Q2-22

Q3-22

Q4-22

FY22

152.84

164.94

106.00

117.58

541.36

6.42

3.80

4.20

5.75

20.17

96%

98%

96%

95%

96%

NON COVID B2B

COVID

Q1-22

Q2-22

Q3-22

Q4-22

FY22

Q1-22

Q2-22

Q3-22

Q4-22

FY22

64.90

66.96

66.01

75.28

273.15

68.43

71.14

15.31

16.13

171.01

41%

40%

60%

61%

49%

43%

42%

14%

13%

30%

NON COVID B2C

Q1-22

Q2-22

Q3-22

Q4-22

FY22

15.89

22.92

21.52

22.75

83.08

10%

14%

20%

18%

15%

NON COVID B2G

Q1-22

Q2-22

Q3-22

Q4-22

FY22

3.62

3.92

3.16

3.42

14.12

Sale of Consumables

Q1-22

Q2-22

Q3-22

Q4-22

FY22

3.62

1.62

0.90

4.43

10.57

Digital Rapid Technologies

Q1-22

Q2-22

Q3-22

Q4-22

FY22

2.80

2.18

3.30

1.32

9.60

Revenue from operations for the financial year at Rs. 561.53 crores grew by 18% YOY, mainly due to contribution of government COVID business in the first two quarter of the year and growth of non COVID two business in the subsequent quarters.

from operations Total Revenue significantly consists of Revenue from Diagnostic Services of Rs. 117.58 crore, grew sequentially by 11%. While it covid revenue on account of 3rd wave, most of the growth is from revenue growth in B2B segment of non covid business.

constitutes

Resetting the base: A de-averaged view of the COVID vs. NON COVID business …

Total Pathology P&L

Total Pathology COVID P&L

Total Pathology NON COVID P&L

P&L

Revenue

GM (%)

FY21

474.27

313.72

FY22

Gr(%)

561.53

18%

396.3

66.15%

70.58%

P&L

Revenue

GM (%)

FY21

151.39

108.01

143.1

71.35%

83.68%

FY22

Gr (%)

P&L

171.01

13%

Revenue

GM (%)

FY21

322.88

205.71

FY22

Gr (%)

390.52

21%

253.2

63.71%

64.84%

Overheads

142.99

165.45

Overheads

22.53

36.69

Overheads

120.46

128.77

Overheads (%)

30.15%

29.47%

Overheads (%)

14.88%

21.45%

Overheads (%)

37.31%

32.97%

EBITDA

EBITDA %

Workload

170.73

230.83

35%

36.00%

41.11%

167 L

210 L

26%

EBITDA

EBITDA %

Workload

85.48

106.41

24%

56.46%

62.22%

19 L

50 L

163%

EBITDA

EBITDA %

Workload

85.25

124.43

46%

26.40%

31.86%

148 L

160 L

… and accounting for COVID recovery in Q1 between FY21 and FY22

Total Pathology P&L

Total Pathology COVID P&L

Total Pathology NON COVID P&L

P&L

Revenue

GM (%)

Q2-Q4 21 Q2-Q4 22 Gr(%)

419.87

402.27

-4%

284.93

290.26

67.86%

72.16%

P&L

Revenue

GM (%)

Q2-Q4 21 Q2-Q4 22 Gr(%)

P&L

Q2-Q4 21 Q2-Q4 22 Gr(%)

127.65

102.58

-20%

Revenue

292.22

299.69

94.55

85.67

74.07%

83.52%

GM (%)

190.38

204.59

65.15%

68.27%

Overheads

123.71

130.1

Overheads

19.75

24.25

Overheads

103.96

105.85

Overheads (%)

29.46%

32.34%

Overheads (%)

15.47%

23.64%

Overheads (%)

35.58%

35.32%

EBITDA

EBITDA %

Workload

161.22

160.16

-1%

38.40%

39.81%

149 L

157 L

EBITDA

EBITDA %

Workload

74.8

61.42

-18%

58.60%

59.88%

18 L

32 L

77%

EBITDA

EBITDA %

Workload

86.42

98.74

14%

29.57%

32.95%

131 L

125 L

-5%

Note: Total Diagnostics P&L – includes Diagnostics Revenue and Material Sales

However, as we look at the year, our NON COVID business has recovered significantly vs. pre-COVID levels

In Q4 FY22, we have recovered to pre- COVID in B2B, growth in B2C

Continued focus on NON COVID business to drive the recovery of the business

Diagnostic Services Revenue (Rs Cr)

200

150

100

93.2

93.0

117.6 16.1

101.5

200

150

100

153

165

106 15

117 16

101

JAN - MAR 19

JAN - MAR 22

APR - JUN 21

JUL - SEP 21

OCT - DEC 21

JAN - MAR 22

Note: All numbers refer to Diagnostics Services revenue

COVID

NON COVID

Our focus has been on driving volumes in the NON COVID business, March exit at an all time high in NON COVID, lowest levels in COVID volumes

Diagnostic Services Revenue (Rs Cr)

Diagnostic Services Workload (Lakhs)

30 30

32 31 32 31

NON COVID

COVID

All time high

9 7 6

14 14 13

12 11

A 21

M 21

J 21

A 21

S 21

O 21

N 21

D 21

J 22

F 22

M 22

A 21

M 21

J 21

A 21

S 21

O 21

N 21

D 21

J 22

F 22

M 22

AMJ 21

JAS 21

OND 21

JFM 22

AMJ 21

JAS 21

OND 21

JFM 22

153 Cr

165 Cr

106 Cr

118 Cr

53.5L

64.0 L

40.7 L

52.5 L

19.1

5.6

4.0

Our B2B and B2C verticals are well on their way to recovery – particularly in last 4-5 months, both in revenue and volume terms

NON COVID Diagnostics Services Revenue (Rs Cr)

NON COVID Diagnostics Services Workload (Lakhs)

22.7 23.1 24.3 23.2 23.8 22.9

30.3

22.6

21.0

20.7

23.3

12.4

11.7

11.1

11.5

10.8

8.5

9.8

9.2

10.2

9.8

18.1

12.4

6.3 6.8 6.9 7.7 7.2 6.5

7.8

6.5 7.1

9.1

1.2

0.6 1.0 1.3 1.6 1.9 1.5 1.5 2.0 1.6 1.7 2.2

A 21

M 21

J 21

A 21

S 21

O 21

N 21

D 21

J 22

F 22

M 22

A 21

M 21

J 21

A 21

S 21

O 21

N 21

D 21 J 22

F 22

M 22

AMJ 21

JAS 21

OND 21

JFM 22

AMJ 21

JAS 21

OND 21

JFM 22

84 Cr

94 Cr

91 Cr

101 Cr

35 L

41 L

36 L

48 L

B2B

B2C

B2G

While our AAROGYAM business has picked up, our NON-AAROGYAM business has recovered significantly as well – additionally our Top 100 clients have driven a significant growth

NON COVID Revenue (Rs Cr)

AAROGYAM

NON-AAROGYAM

NON COVID Revenue (Rs Cr)

Top 100 clients

A 21

M 21

J 21

A 21

S 21

O 21

N 21

D 21

J 22

F 22

M 22

A 21

M 21

J 21

A 21

S 21

O 21

N 21

D 21

J 22

F 22

M 22

Amongst our Top 100 clients we count –

• All 3 leading online pharmacy companies

•

Top 3 e-Consult platforms

3 largest search aggregators of health and diagnostics services

Agenda

Setting the baseline - drivers for FY22

Going forward - key strategic drivers and progress

Summary results & Q&A

API + Thyrocare stronger together – an 8 point agenda

Serve Pharmeasy Online customer base of 2.1 M quarterly transacting users

Partner with Retailio & MARG retailer network of 2.8L+ counters to expand order points

Leverage Aknamed to build a diagnostic presence in the hospital space

Ensure the expansion of Pharmeasy & DocOn offline collection points

Continue to improve our value proposition to our franchisee network, expand aggressively

Focus on our Health packages i.e. Aarogyam and promote to corporates, online & offline

Expand Lab network selectively to address TAT challenges, invest in accreditation and PR

Leverage Pharmeasy technology expertise to improve our customer experience and phlebotomist productivity

Note: All numbers as of June 2021 - from DRHP – Nov 8 2021

The combination of Pharmeasy and Thyrocare is uniquely advantaged in the diagnostics space

Benchmarking

Pharmeasy + Thyrocare Digital diagnostics

Standalone diagnostic player

Healthcare platforms

Product & tech depth

Customer acquisition cost

National presence

Cost structure

Tech team spread across 4 large verticals, can invest in scale capability

Customer acquisition cost lower as we defray cost across multiple verticals

22 Labs across the country, Pan India presence

Largest scale – process 20L samples a month – largest player by volume

Focused on single vertical

Digital strength is limited, will take time to scale up

Spread across verticals, can invest in scale capability

Customer acquisition cost in Diagnostics only is 2x that for medicines

Presence in few metros, not very deep

Sub-scale

Large chains have a regional presence, very few have true PAN India presence

Have scale, but given the fixed costs, lower margin per test

Similar Customer acquisition costs, but don’t have the advantage of own back-end

Metro / Tier 1 presence at best among all platforms

Sub-scale

Continued efforts maximize Thyrocare as a B2B brand in diagnostics

Addressing churn

Quality perception

Doctor Engagement

Working on TAT

Network expansion

Menu expansion

All time high of 21 Lakh samples in March 22

3 Labs accredited for NABL in last 3 months

Another 5 due for accreditation in coming 3 months

Hosted roundtable on Genome Sequencing in TB

67% of samples reach our lab within 12 hours

95% of samples processed at Lab within 6 hours

Pan India presence

22 Regional Labs across the country

Extensive test menu

Now with 700+ tests beyond Thyroid

Full power of the API network being leveraged to drive diagnostics

Cross-sell

Consultation

Collection centers

Hospitals

Pharmacies

Targeting to reach 7% cross-sell (Pharmeasy users buying diagnostics) by end of FY23

API already at 8% of Thyrocare revenue

4200 prescribing doctors on DocOn

1500+ orders per month from 433+ doctors

Targeting to have 1,000 collection centers by March 23

Leveraging our Hospital relationships to target 60 top hospitals

317+ collection points initiated

13 Hospitals on-boarded through Aknamed

6,000 Super-retailers selling Diagnostics by Mar 23

Full scale roll out started, 273 active counters onboarded

Our focus areas for the next growth horizons

400 Cr

NON COVID in FY22

Current Focus

• Addressing churn

• Quality perception

• Doctor engagement

• TAT improvement

• Menu expansion

Next 3 years

FY25 Horizon 1

Next3 years

FY28 Horizon 2

Strategic Platforms

• Target 15% of Pharmeasy users on the

platform for cross-sell, focused expansion across online platforms

• Rio / Marg-expansion to 35,000 retailers

• Hospital business in 200+ hospitals

• Thyrocare geographical expansion

• Base business growth at pre covid levels

• Continue to expand cross- sell and retail presence across all Pharmeasy touch- points

• International expansion at a

Regional level

• Integrated Corporate wellness offering

Agenda

Setting the baseline - drivers for FY22

Going forward - key strategic drivers and progress

Summary results & Q&A

Key Highlights - Pathology

Revenue Rs. 562 Crore

YoY 18% ↑

EBITDA Rs. 231 Crore

EBITDA Margin 41%

PAT Rs. 151 Crore

PAT Margin 27%

Covid RTPCR- Q4

414282

Non- Covid Samples- Q4 4832349

Total

Patients Served- Q4 3696967

Tests- Q4 3198525 1

Revenue from operations of Rs. 562 Crore, grown by 18% YOY. Revenue for the final quarter of the year of Rs. 123 Crore, grown by 12% in sequential quarters mainly with revival of the base non covid business. Revenue from COVID in sequential quarters despite of 3rd wave in January. Non Covid business however revived business was flat significantly and surpassed the pre-COVID business. Continued focus on B2B business enabled us to garner lost volumes. Revenue and volumes for the month of March were all time high.

Gross margin for the year improved mainly on account of reduction in the covid reagent/ consumables, however to enable growth aggressive prices are offered in the last quarter on routine non aarogyam tests and certain aarogyam profiles that has lead to impact on Q4 gross margins which shall settle down in the coming period.

Absolute EBITDA of Rs. 231 crore, grown by 35% YOY, mainly on account of better EBITDA margins on account of lower reagent/ consumable and operations cost in Government COVID business. The EBITDA margin at 41% for the year were tampered down in the last two quarters mainly on account of impact on the topline due to erosion of high margin government contract business, aggressive discounts to the network on some routine tests/ profiles to revive the business, spendings on manpower in particular growth teams to sustain growth and infrastructure to improve turnaround time to the patients.

4.40 million COVID RTPCR tests were performed in the year, though despite 3rd wave in January only 0.41 million were performed in the last quarter, thereby the focus is now shifted to non COVID segment.

Total 21.07 million samples (including COVID) sourced from 16.32 million patients (including COVID) were processed during current year.

110.30 million tests were processed in the current year that includes standalone tests, COVID tests and tests included in the preventive care Aarogyam profiles.

Income Statement - Pathology

Pathology business grew by 12% in sequential quarter and yearly by 18%. Growth in the current quarter was mainly on account of revival of B2B non COVID business.

Income Statement

INR in crore Revenue from operations Cost of materials consumed/ sold Gross margin Employee benefit expenses Other expenses EBITDA Depreciation and amortisation Finance cost Other income Profit before tax and exceptional items Tax expense Profit after tax Other comprehensive income Total comprehensive income

Quarter Q 31.03.2022 Q 31.12.2021 Q 31.03.2021 110.20 (29.00) 81.20 (14.10) (31.10) 36.00 (7.40) (0.60) 1.10 29.10 (6.50) 22.60 - 22.60

139.16 (43.11) 96.04 (18.24) (27.12) 50.69 (5.74) (0.01) 2.48 47.42 (12.07) 35.35 (1.41) 33.94

123.33 (40.63) 82.70 (16.72) (29.15) 36.83 (8.57) (0.58) 1.70 29.38 (9.03) 20.35 0.16 20.51

Q Variance (%)

Year

Variance (%)

YOY Seq. -11% 12% -6% 40% -14% 2% -8% 19% 7% -6% -27% 2% 49% 16% -3% 10546% -31% 55% -38% 1% -18% 53% -45% -14% -111% 100% -42% -13%

31.03.2022 561.53 (165.23) 396.30 (58.82) (106.65) 230.83 (28.47) (2.38) 7.40 207.38 (55.33) 152.05 (0.04) 152.01

31.03.2021 474.27 (160.55) 313.71 (56.79) (86.19) 170.73 (21.08) (0.66) 12.28 161.27 (41.51) 119.77 (1.41) 118.36

YOY 18% 3% 26% 4% 24% 35% 35% 261% -40% 29% 35% 26% -97% 28%

Revenue growth Gross margin % EBITDA% PAT%

n/a 67% 30% 16%

12% 74% 33% 21%

(11%) 69% 36% 25%

18% 71% 41% 27%

19% 66% 36% 25%

from operations

Revenue – primarily comprised of Revenue from diagnostic services Rs. 117 crore and revenue from sale of consumables and digital rapid technology products of about Rs. 6 crore. Diagnostic in revenue sequential quarter is about 12%, primarily is on account of revival of B2B non COVID business.

growth

Gross margin impacted during the quarter mainly account of erosion of high margin COVID business, on prices aggressive routine non aarogyam tests and certain aarogyam profiles.

offered

Employee benefit expenses at 17 crores increased with additions in growth team to sustain growth and in laboratory team to maintain quality in reporting.

repairs

Service

consists

expenses

of Other service charges, sales incentives, and power fuel, and charges maintenance. for includes cost of phlebotomist home collection order, and LME costs whereas sales incentives are for channel partners to promote tests. There is an increase in the overall fixed costs anticipated with expansion network RPL throughout the country.

Income Statement - Radiology

Radiology business accounted for about 5% of reported consolidated revenue of Thyrocare Group revived significantly after complete shut down for couple of months in covid and thereafter out of the impact of lockdowns, posting 34% YOY growth in the current year.

Income Statement

Revenue growth Gross margin % EBITDA% PAT%

Quarter Q 31.03.2022 Q 31.12.2021 Q 31.03.2021

7.22 (1.26) 5.96 (0.76) (4.78) 0.42 (1.19) 0.02 0.78 0.03 0.29 0.32 - 0.32

n/a 83% 6% 19%

7.26 (1.00) 6.26 (0.62) (4.94) 0.70 (1.47) (0.03) 0.53 (0.27) (0.75) (1.02) (0.01) (1.03)

(1%) 86% 10% (14%)

7.68 (1.28) 6.40 (0.29) (5.37) 0.74 (2.13) (0.35) 1.71 (0.03) 2.19 2.16 0.01 2.17

(6%) 83% 10% 28%

Q Variance (%)

Year

Variance (%)

Seq. -1% 26% -5% 23% -3% -40% -19% -167% 47% -111% -279% -234% -100% -233%

YOY -6% -1% -7% 160% -11% -43% -44% -106% -54% -203% -39% -37% -100% -37%

31.03.2022 27.35 (4.46) 22.89 (2.30) (17.16) 3.43 (5.80) (0.25) 23.01 20.39 3.75 25.20 (0.02) 24.12

31.03.2021 20.41 (3.35) 17.07 (1.29) (15.66) 0.11 (9.42) (1.53) 2.02 (8.81) 2.19 (6.63) 0.01 (6.61)

YOY 34% 33% 34% 78% 10% 2904% -38% -84% 1041% -331% 120% -480% -261% -481%

34% 84% 13% 92%

(40%) 84% 1% (32%)

from operations

Revenue – Revenue from imaging services accounted for 5% of reported consolidated revenue of Thyrocare Group in current year. Radiology significantly business improved year, with during the current patient the COVID impact. Revenue from sale of FDG for the year was Rs. 2.36 crore.

footfall growing after

of some sold acquired with

its Nueclear properties the intention of setting up PETCT during the year, to settle the loans and other liabilities.

has

invested

the year

Nueclear in innovations during the last quarter of to enhance the production yield of FDG and reduce the costs, that shall enable it to offer PETCT services at significantly competitive prices.

The operations at Baroda center were commence after a gap of about two years due to legal dispute.

cost

operations

have The remained stable throughout the year though there is an increase in 18 the manpower cost.

Income Statement - Consolidated

Consolidated annual revenue of the group grew by 19% YOY, with positive signs of revival in non covid business. COVID business significantly eroded in last two quarters and radiology business growing at pre COVID level.

Income Statement

INR in crore Revenue from operations Cost of materials consumed/ sold Gross margin Employee benefit expenses Other expenses EBITDA Depreciation and amortisation Finance cost Other income Profit before tax and exceptional items Share of profit in associate entity Tax expense Profit after tax Other comprehensive income Total comprehensive income

Quarter Q 31.03.2022 Q 31.12.2021 Q 31.03.2021 117.40 (30.00) 87.40 (14.70) (35.90) 36.80 (8.80) (0.50) 1.40 28.90 (0.20) (7.20) 21.50 - 21.50

146.84 (44.39) 102.45 (18.53) (32.38) 51.54 (7.81) 0.09 3.64 47.45 0.18 (9.88) 37.75 (1.39) 36.36

130.56 (41.89) 88.67 (17.43) (33.65) 37.59 (9.67) (0.57) 2.15 29.50 0.52 (8.78) 21.24 0.22 21.46

Q Variance (%)

Year

Variance (%)

Seq. 11% 40% 1% 19% -6% 2% 10% 14% 54% 2% -360% 20% 0% 100% 1%

YOY -11% -6% -13% -6% 4% -27% 24% -757% -41% -38% 191% -13% -43% -116% -41%

31.03.2022 588.86 (169.69) 419.17 (61.13) (123.15) 234.89 (33.87) (2.37) 29.25 227.90 (0.18) (51.58) 176.14 (0.08) 176.06

31.03.2021 494.62 (163.90) 330.72 (58.07) (101.41) 171.24 (30.28) (0.87) 12.43 152.53 (0.07) (39.32) 113.13 (1.39) 111.74

YOY 19% 4% 27% 5% 21% 37% 12% 174% 135% 49% 143% 31% 56% -94% 58%

Revenue growth Gross margin % EBITDA% PAT%

n/a 68% 29% 16%

11% 74% 31% 18%

(11%) 70% 35% 26%

19% 71% 40% 30%

14% 67% 35% 23%

from operations

Revenue – primarily comprised of Revenue from diagnostic services to the extent of 96%. Base B2B non COVID business has revived to pre-COVID level. Overall growth in topline is about 19%.

due

Gross margin for the year though improved higher contribution of high margin COVID business, impacted during the later quarters due erosion of COVID business, prices offered on routine non aarogyam aarogyam certain tests profiles.

aggressive

and

Employee expenses benefit increased with additions in growth team to sustain growth and in laboratory team to maintain quality in reporting. The cost is net off reversals of excess provision on employee benefits.

and

repairs

consists

expenses

Other of service charges, sales incentives, power and fuel, maintenance and CMC cost of machines for Nueclear. There is an increase in the overall fixed costs anticipated with expansion of RPL network on business promotions.

spendings

and

Thank You

Disclaimer This presentation is for information purposes only and it contains general background information about the Company’s activities. 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. This Presentation comprises information given in summary form and does not purport to be complete. This Presentation should not be considered as a recommendation to any investor to purchase the equity shares of the Company. This Presentation includes statements that are, or may be deemed to be, “forward-looking statements”. By their nature, forward- looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future financial condition and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. The past performance is not indicative of future results. This document has not been and will not be reviewed or approved by the statutory auditors or a regulatory authority in India or by any stock exchange in India.

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Thyrocare Technologies Limited has informed the Exchange about Investor Presentation

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