CII Evolving Healthcare Investment Landscape Motives that drive PE Funds to favour Healthcare Units

2 2 What are PE Investors looking for in an Investment? Attractive Industry Addressing Market Need Building Leadership Position Manage Profitable Growth Focus on Entrepreneur Exit

3 Demand Rising disposable income levels Increasing health awareness Change in disease profile – shift towards lifestyle / chronic diseases Demographic changes Increasing penetration of medical insurance Medical tourism Supply Majority of current infrastructure owned by Govt. Significant gap in capacity Current capacity primarily in Metro/Big Cities Attractive Industry

4 Customer: end-to-end services to identified customer; e.g. Single Speciality Cost: savings to customers for similar services; e.g. Affordable Healthcare Convenience: providing service at customer’s preferred location; e.g. Home Care Experience: facilitating unique experience for customer; e.g. Birthing Personalization: create a unique offering to meet individual needs; e.g. Cosmetology Geography: addressing needs of customers in specific areas; e.g. Regional Players Scale: benefit of scale to reduce costs, create innovation and increase interphase with customers; e.g. Large Tertiary Care Chains Addressing Market Need

5 Potential market size – Existing market structure – Potential consolidation opportunities Key success factors to build scale – Ability to create differentiation – Potential to influence customer behaviour – Standardization of infrastructure, product & process – Availability of manpower – Supply chain & logistics Building Leadership Positioning

6 Standardized unit level operating metrics Predictability of business performance – Limited influence of exogenous variables Profitability Profile – Timelines aligned to investment horizon Benchmarking to best-of-class industry metrics Manage Profitable Growth

7 Clarity of Entrepreneur’s thought process Ability to attract professional talent Experience of management team to manage business dynamics Build organization capacity to create, identify & nurture future leaders Create robust performance review & compensation mechanism Focus on Entrepreneur

8 Alignment of growth plans with investment horizon Opportunity for outsized returns Potential future investment requirements Availability of multiple options Exit