Aster DM Healthcare Ltd Management Discussions

Global Economic OverView¹

In CY 2023, the global economy demonstrated reslllence with a growth rate of 3.2%, despite navigating several headwinds. This steady growth has been driven by declining inflation and consistent economic expansion.

Looking forward, the global economy is anticipated to maintain its growth rate at 3.2% for both CY 2024 and CY 2025. Inflation is also projected to decline further to 5.9% in CY 2024. With inflation gradually declining and central banks worldwide aiming to ease monetary policies and undertaking structural reforms to promote sustainable growth, the global economic outlook remains optimistic.

Indian Economic Overview

Despite global economic headwinds, India maintained its position as one of the worlds fastest-growing economies. According to the National Statistical Office (NSO), India recorded a real GDP growth of 8.2% during FY2024, outpacing many major economies.² This robust growth can be primarily attributed to strong fiscal management, effective tax collection and strategic fiscal consolidation measures. With the Government of India significantly increasing capital expenditure to INR 12.7 lakh Crs in FY2024³, it proved to be beneficial for the Indian economic growth. Furthermore, strategic investment in infrastructure and development projects stimulated private investment and fuelled domestic demand, playing a crucial role in propelling the economy forward and cushioning it from global headwinds.

The healthcare sector in India has been a significant beneficiary of this economic growth. The Governments focus on improving healthcare infrastructure, coupled with increased private investments has led to rapid advancements in medical technology and services. Furthermore, with digital transformation sweeping across India, it has significantly impacted the healthcare delivery.

The expansion of telemedicine services and the integration of artificial intelligence in diagnostics have improved access to healthcare, especially in rural areas. In addition to this, various governmental initiatives, such as the Ayushman Bharat Digital Mission, are accelerating the adoption of digital health solutions, providing new opportunities for healthcare providers. As the economy grows, rising income levels are further expected to increase healthcare spending, both by individuals and the government.

Looking ahead, strong fundamentals such as political stability, heightened government focus on public capital expenditure, gradual rise in private capital expenditure and growing credit demand, are expected to drive Indias growth. Indias real GDP growth for FY 2025 is projected at 7.0%. This sustained growth trajectory is expected to propel India closer to the USD 7 Trillion mark, making it the third-largest economy in the world by 2031. The governments continued focus on infrastructure development, digitalization and economic reforms, coupled with India emerging as a preferred manufacturing hub, is expected to optimize productivity and support long-term growth.

Indian Healthcare Sector Overview⁴

The Indian healthcare sector is undergoing significant growth and transformation. The industry surpassed USD 370 Bn in 2022 and is projected to exceed USD 610 Bn by 2026. As of 2023, the hospital market in India was valued at approximately USD 98.98 Bn and is projected to grow at a compound annual growth rate (CAGR) of 8.0% between 2024 and 2032. This trend is underscored by Indias growing healthcare expenditure as a percentage of GDP from 1.3% in 2019 to 3.3% in 2022. This statistic also highlights a critical need for enhanced healthcare infrastructure and affordable services, presenting lucrative opportunities for investors to address the substantial gaps in the market.

Note: Latest data Inas been considerad. Data for Ca?ada, Germany, United States is as of 2022 World auerage is for ti?e year 2020

Source: Global Health Expendlture Database accessed ?n May 2024. World Health Organizadora Telemedicine, a rapidly emerg?ng segment w?th?n the Indian healthcare landscape, presents ?mmense potent?al, The market is ant?c?pated to reach USD 5,4 Bn by 2025, with a growth rate exceed?ng 30% annually. These projected est?mat?ons h?ghl?ght the ?ncreas?ng adoption of digital health Solutions, support?ng the ?ndustry to unlock over USD 200 Bn in additional economic valu? w?th?n the next decade.

Ayushman Bharat, one of the worlds largest health insurance schemes, ensures millions of Indians receive access to affordable healthcare, Since 2014, the Government of India has invested over INR 176 Bn to establish new medical colleges, In addltlon to this, Ind?as policy of permitting 100% forelgn ?nvestment v?a the automatic route in the medical devices sector has successfully attracted substantial ?nvestments, From April 2000 to September 2023, the total FDI mflow ?n medical devices reached USD 3,228 Mn, whereas the drugs and pharmaceuticals sector saw FDI amountlng to USD 21,581 Mn during the same perlod.⁵

With the current rankmg at posltion 10, India poses ?mmense potent?al in medical tourlsm. The number of foreign tourlsts seekmg medical treatment in India has witnessed a sigmficant rise over the years, growlng from 183,000 m 2020 to over 630,000 in 2023. Ind?as healthcare sector takes pride ?n bullding a robust nfrastructure, fostering a healthy growing pool of medical professlonals and incorporating effective governmental mltiatlves to ncrease medical accessibillty for the underserved segments of the soclety, With contmuous ?nvestments and focus on digitalisation, the Indian healthcare sector is poised for remarkable growth in the upcomlng years

Key segments of Indian healthcare sector

Hospitals and Infrastructure

India has a low hospital bed density, with only 15 beds per 10,000 populat?on; this ?s sigmficantly lower as compared to the global average of 29 beds, While the shortage of basic healthcare infrastructure presents a challenge, ?t also presents an opportunlty for growth, On the other hand, the healthcare delivery market is expected to reach USD 193,59 Bn by FY2032, drlven by robust inpatient and outpatlent Services,

Pharmaceuticals

ndla is a major global suppller of affordable medicines, producing 60% of global vaccines and leadlng ?n generlc drug supply. The pharmaceutlcal market is projected to grow from USD 65 Bn in 2024 to USD 120-130 Bn by 2030, supported by various government initiatives, including the Production Linked Incentive (PLI) scheme

Retail Pharmacy

The retail pharmacy market is expected to grow from USD 18,89 Bn ?n 2022 to USD 40,19 Bn by 2030, with a CAGR of 9,9%, This growth is anticlpated to be primarily drlven by organlsed retail chains, e-pharmacy platforms and government ?nitiatives such as the Pradhan Mantri Bhartlya Jan Aushadhi Parlyojana (PMBJP).

Diagnostic Services

Currently valued at USD 11 Bn, the diagnostic Service market is expected to reach USD 50 Bn by 2030. With the ?ncreas?ng prevalence of chronic diseases, rlsmg healthcare expendlture and surglng demand for preventive healthcare, the diagnostic Services are polsed for growth in the upcomlng years

Home Healthcare

The home healthcare market ?s projected to grow at a CAGR of 19.3% frum 2023 to 2030, driven by a growing geriatric population, ?ncreas?ng prevalence of chronic diseases and the rapid adoption of technolog?es such as telemedicine and rem?te patient monitoring.

Medical Devices

The medical devices segment has been identified as the sunrise sector by the Government of India. The market, estimated at USD 11 Bn ?n 2022, is projected to reach USD 50 Bn by 2025-2030. The key segments inelude consumables, diagnostic imaging, dental produc?s, orthopaedics and patient aids, The Government has also ?ntroduced supportive measures such as 100% FDI allowance, Production Linked Incentive schemes and the development of medical dev?ce parks,

Emerging Trends in the Healthcare Industry

Telemedicine Adoption

The healthcare Industry ?s shlftlngtowards adoptlng advanced technology and enhanclng operational efflclency, Initiatives such as the Account Aggregator Framework and dematerlalisatlon are drlvlng the next wave of digital transformation, The need for rem?te healthcare Services has bolstered the adoption of telemedlclne across India, It ?s expected to reach USD 5.5 Bn by 2025, growing at a CAGR of around 31% between 2020 and 2025.-

Digital Prescription and Health Records

The digitisation of healthcare Services, ?ncludlng the adoption of electronic health records (EHRs) and e-prescriptlons, is gaining significant momentum ?n India. Wlth the advent of advanced technology, the industry alms to ?mprove healthcare dellvery, enhance patient safety and streamllne operatlons.

Rem?te Patient Monitoring and Wearables

The usage of wearable devices and rem?te patient monitoring technolog?es has surged ?n India, enabling healthcare provlders to monitor patlents vital slgns and health condltions even remotely. Thls ?s partlcularly beneflclal for managing chronic diseases and ?mproves the prospeets of provldlng personalised healthcare Services.

Personalised Medicine and Genomics

As an emerging fleld ?n India, personalised medicine and genomics sector focus on tallorlng treatment plans based on an Individu?is genetlc proflle. Thls approach alms to ?mprove treatment outeomes, reduce adverse effeets and streamllne healthcare dellvery.

Retail Healthcare

The concept of retail healthcare ?s steadlly galnlng popularity ?n India,

Wlth the establlshment of cllnlcs and diagnostic centres ?n retail spaces such as malls and shopplng centres, thls method ensures easy access to healthcare Services as per convenlence.

Growth drivers

Medical Tourism

Medical tourism ?n India has grown significantly over the years. Approxlmately, 0.53 Mn+ patlents vlslt India annually from 78 countrles for medical, wellness and IVF treatments, generating USD 5 Bn for the Industry. Wlth the supportfrom the Government of India through governmental initiatives, such as Heal ?n India) the Industry ?s antlclpated to reach USD 13 Bn by 2026. In India, two-thlrds of medical tourlsts come from South Asia and approxlmately 9A% from Africa, West Asia and South Asia.

Ind?a has established itself as an attractlve medical tourism destination, owlng to provisi?n of hlgh-quallty healthcare, facilitated by advanced technology, skllled medical professionals and significantly lowercosts as compared to Western countries. India has over 1,600 hospltals accredlted by the National Accredltation Board for Hospltals & Healthcare Provlders (NABH) and 52 hospltals accredlted by the Jolnt Commlsslon International (JCI). In addition to thls, the Indlan government has ?mplemented several measures to boost medical tourism, ?ncludlng the ?ntroductlon of the Ayush Visa, whlch has resulted ?n easler access for medical tourlsts. The Government ?s also actlvely promotlng alternative therapies IIke Ayurveda and Yoga on an International level.

Technology and Digitalisation

The ?ntegratlon of advanced technolog?es ?s revolutlonlslng healthcare dellvery ?n India wlth Hospital Information Systems (HIS) and Electronic Medical Records (EMR) ?mprovlng operational efflclency and patient care. Artificial Intelligence (Al) and Machine Learnlng (ML) appl?catlons ?n healthcare have enhanced dlagnostlcs, ?mproved treatment plannlng and optlmlzed dlnlcal efflclency. In addition to thls, Robotlcs and Al-drlven surgical systems are also ?mprovlng precisi?n ?n complex procedures whlle Electronic Intenslve Care Unlts (elCUs) are enabling rem?te monitoring of crltlcal patients, expandtng access to specialist care, These technological advancements are transforming the Indian healthcare landscape, promising improved access, quality and affordability of healthcare Services across the country,

Rising Health Insurance Penetration

The health Insurance sector in India is witnessing significant growth While current penetration is around 38% of the total premium, with the premium amountlng to INR 97,633 Crs ?n FY 2022-23 it is expected to increase rapldly, Government schemes, such as Ayushman Bharat, are playlng a crucial role in expandlng coverage, especially among lower-income groups,

Home Healthcare Market Expansi?n

The home healthcare market ?n India is projected to grow significantly, reaching USD 21,3 Bn by 2027, with a CAGR of 19,2%, This growth is expected to be driven by a growing geriatric population, mcreasing chronic diseases and a preference for personalised care at home.

Government Initiatives in FY24

The 2024-25 interim budget for the Ministry of Health and Family Welfare (MoHFW) demonstrates the Governments commitment to improving healthcare access and quality in India. The focus ?s to strengthen prlmary care infrastructure, address speclflc diseases and expand secondary and tertlary care facllltles. However, conslstent efforts are requlred tu brldge the funding gap, address workforce shortage and ensure equitable healthcare across the nation. The Interim budget allocation for MuHFW stands at INR 90,659 Crs, a significant rlse of 12.6% from INR 30,518 Crs ?n the prevlous year.⁷

• Pradhan Mantri Ayushman Bharat Health Infrastructure Mlsslon (PM-ABHIM) aims to expand cumprehenslve prlmary healthcare Services by establishing 14,500 Health and Wellness Centres (HWCs) across the nation, These centres wlll offer preventlve, promotlve and curative Services, ?ndudlng dlagnostlcs and essentlal medicines,

• The budget allocates funds to upgrade Infrastructure and faculty capaclty in existing government medical colleges, ?ncreaslng the strength of qualified medical prufesslonals, partlcularly ?n underserved areas.

• The budget has allotted a sep?rate reserve fortargeted dlsease control programmes. For instance, India alms to bulld a dedlcated rnisslon to create awareness, ?mprove diagnosis and treatment facilities and ultimately elim?nate sickte cell anaemia by 2047, The Countrys other programmes addressing tuberculosis, HIV/AIDS, malaria and other non-communicable diseases wlll continu? to receive funding as well,

• The prestigious All India Institute of Medical Sciences (AIIMS) will be establishing new branches in different regions, improving access to specialised medical care.

Opportunities

Increasing Health Awareness

Most of the healthcare infrastructure in India is based out of urban areas in India. With a significant increase in urban population, awareness and offtake of healthcare Services for preventive and curative care would significantly ?ncrease, surging healthcare demand

Urban population in India as % of total population

Change in Demographics and Rising Income Levels

By 2026,12.5% of Indlas population ?s expected to be aged 67 or older. It ?s antlclpated thatcommon allments such as arthritis, hypertension, diabetes, asthma and heart dlsease wlll affect individu?is over 60, with 66% of the elderly sufferlng from at least one of these conditions, Furthermore, accordlng to estlmatlons, over the next 15 years, around 15% of Indlas population, or approximately 220 Mn people, wlll reach the age of 60 or above. Thls Increase in the elderly population wlll significantly straln the existing healthcare infrastructure over the next 20 to 30 years. However, with the growth ?n household Income over the past 15 years, ?t has enabled Individu?is to access crltlcal healthcare Services necessary for maintalnlng a healthy Ufe

Break up of Iridian Population by Age

Addressing Non-communicable Diseases (NCDs) in India

The rising prevalence of non-communicable diseases (NCDs) ?n India presents significant opportumties for the healthcare industry. NCDs such as cardiovascular diseases, diabetes, c?ncer and chromc respiratory diseases, now account for approximately 66% of al deaths m the country, This growing burden underscores the urgent need for enhanced healthcare Services and mfrastructure,

Health Insurance Coverage

ndias average health Insurance penetration was 38% m 2021, This proportion is expected to rise to 45-50% by 2026, Historically, low health Insurance coverage has hmdered the uptake of healthcare Services among the general population, However, accordlng to the

Insurance Regulatory and Development Authority of India (IRDAI), Insurance coverage ?ncreased 1.4 times, reaching 550 Mn people ?n 2023 compared to 288 Mn ?n 2014-15, representing a CAGR of 11%. As a result, hospltallsatlon rafes are expected to rlse ?n the coming years, along wlth the frequency of health check-ups, driving demand for a robust healthcare dellvery mfrastructure,

Increasing out of Pocket Expenses

In India, out-of-pocket expenses account for 51% of total health expendlture- one of the hlghest in the world, Wlth China at 35%, the US at 10% and global valu? at 16%, this underscores the urgent need for affordable healthcare Solutions and Insurance coverage, This disparity ?ndlcates a substantlal market potential for pr?vate ?nsurers to Introduce tallored health Insurance produc?s, particularly those covering outpatlent care.

Healthcare Challenges in India⁸

Healthcare Infrastructure

Ind?a ?s at a crucial juncture, possessmg substantlal disposable ncome yet limited access to essential and quality healthcare Services, Desplte being the fifth largest economy in the world,

I nd ?a has a modest bed denslty of only 15 beds per 10,000 people This is signlficantly lower than the global median of 29 beds, On the other hand, bed densities of other emerging nations such as Brazll (25), Malaysla (20) and Vietnam (26) are higher as compared to India, A substantlal disparity exlsts between the supply and demand of healthcare Services in India, underscorlng the urgent need to enhance the avallability of basic healthcare Services across the country.

Shortfall ?n Healthcare Professionals

India falls short of the World Health Orgamzations (WHO) recommended standards for healthcare professionals and ?nfrastructure. This deficiency ?s especially pronounced in rural areas where access to healthcare Services is already limited. There are 10 doctors and 17 nurses and mldwlves per 10,000 Individu?is ?n India, In comparison, middle-lncome countries like China and Brazll have 17 doctors and 40 nurses and mldwlves per 10,000 persons.

Healthcare Personnel: India vs Other Countries

Company OverView

Aster DM Healthcare Limited is one of the largest healthcare Service providers operating in India w?th a strong presence through 19 huspitals with A,867 beds, 13 clinics, 215 pharmacies (Operated by Alfaone Retail Pharmacies Pr?vate Limited under brand license from Aster) and 232 labs and patient exper?ence centres across 5 States in India, delivering a simple yet strong promise of "Well Treat You Well." Aster has been recognised as one of the most sustainable companies globally, with 9 hospitals featured in Newsweek magazines Worlds Best Hospitals iist for 2024.

Key Strengths

Complete Cirde of Care

The Company offers a comprehensive range of Services, encompassing primary, secondary, tertiary and quaternary care. Through an extensive network of hospitals, clinics, labs and pharmacies, Aster DM offers synerg?es across various healthcare verticals, enabling seamless patient experience.

Experienced Workforce

Aster DM Healthcare takes pride in its skilled and dedicated workforce that ensures quality healthcare is provided to its patients. With over 19,502 employees including 2,649 doctors, 6,235 and 2,875 paramedical staff, the Company ensures quality healthcare is w?th?n the reach of the masses,

Established Reputation

With a rich legacy spanning 37 years of delivering quality healthcare Services, Aster DM Healthcare has earned the trust of patients and is rated among the best hospital chalns ?n India, The Company

contin?es to work on its visi?n to provide affordable and accessible quality healthcare for all.

Medical Excellence

The Company operates world-class Centres of Excellence across various medical flelds, Including Aster International Institute of Oncology and more, Each institution ?s equipped with state-of-the-art technology and houses hlghly experienced doctors, Consistent recognltion by prestlglous ?nstltutlons, such as the World Stroke Associatlon and the Times All India Multlspeclalty Hospitals Banking Sun/ey ?s atestament to the Companys dedicatlon to surpass performance benchmarks, Thls focus on excellence ensures that Aster DM Healthcare not only meets but also exceeds patient care standards, maklng it a trusted cholee for healthcare Services across m?ltiple countrles,

Innovation and Growth

Aster actively embraces technologlcal advancements to dlverslfy and expand its Services, pushlng the boundarles of healthcare excellence and creating International standards for patient care,

Leadership Position in Southern India

The company has fortified Its position as the second-largest hospital network in South India with the largest bed capaclty ?n Kerala, second in Andhra Pradesh and third in Karnataka among the Usted hospital networks. The Company ?s actively expanding Its footprlnt ?n the regi?n through both organic growth and strateglc acquisltlons. Aster DMs growth strategy indudes adding new hospitals, ?ncreasing bed capacity and expanding into underserved markets, The Companys focus on tertiary and quaternary care along with Its cluster-based approach has hetped the orgamsation to solidlfy Its position as a eadlng healthcare provlder In the Southern India.

Business OverView

India Hospitals

Aster DM Healthcare has fortified its presence in the Indian hospital sector. As of FY2024, Aster operated on a total of 4,867 beds across its hospitals in India. Moving forward, the Company plans to increase its strength to 6,500+ beds by FY2027. Aster has a capital allocation strategy that aims to drive expansi?n in India through its ongoing and planned projeets across different States

Major expansi?n projeets inelude Aster Medcity (Kochi), Aster MIMS Kannur, Aster PMF (Kollam), Aster Whitefield Hospital (Bengaluru), Aster Ramesh Sanghamitra (Ongole), Aster MIMS Calicut, Aster CMI (Bengaluru), Aster MIMS Kasargod and Aster Capital Hospital (Trivandrum)

The Company also takes pride in building a diversified portfolio of owned, leased and managed hospital assets across key reg?ons like Kerala, Karnataka, Maharashtra, Andhra Pradesh and Telangana.

Cluster-wise Hospitals

Hospitals	Location	Commencement or Acquisition year	Bed Capacity	Operational Beds (Census)
Aster Medcity	Kochi, Kerala	2014	760	626
Aster MIMS Calicut	Kuzhikode, Kerala	2013	696	463
Aster MIMS Kottakal	Kottakkal, Kerala	2013	340	263
Aster MIMS Kannur	Kannur, Kerala	2019	312	249
Aster Mother Hospital	Areekode, Kerala	2022	140	101
Aster PMF Hospital	Kollam, Kerala	2023	148	125
Aster CMI	Bengaluru, Karnataka	2014	509	368
Aster Whitefield	Bengaluru, Karnataka	2021	347	175
Aster RV	Bengaluru, Karnataka	2019	237	167
Aster G Madegowda	Mandya, Karnataka	2023	100	40
Aster Aadhar Hospital	Kolhapur, Maharashtra	2008	231	196
Aster Prime Hospital	Hyderabad, Telangana	2014	153	98
Aster Narayanadrl	Tirupati, Andhra Pradesh	2023	150	112
Aster Ramesh Guntur	Guntur, Andhra Pradesh	2016	350	225
Aster Ramesh - Main Centre	Vijayawada, Andhra Pradesh	2016	135	125
Aster Ramesh - Labbipet	Vijayawada, Andhra Pradesh	2016	54	47
Aster Ramesh Adiran IB	Vijayawada, Andhra Pradesh	2023	50	42
Aster Ramesh Sanghmitra	Ongole, Andhra Pradesh	2018	150	130

Aster Labs

Aster Labs, the diagnostic and pathology wing of Aster DM Healthcare, offers comprehenslve diagnostlc Services wlthln south India through its network of 1 Reference Lab, A Satelllte Labs, 3 Hospital Lab Managements (HLMs) and 52 Patlent Experlence Centres (PECs) ?n Karnataka and 8 Satelllte Labs, 6 (HLMs) Hospital Lab Managements and 155 Patlent Experlence Centres (PECs) ?n Kerala, 2 Satelllte Labs m Tamil Nadu (Coimbatore and Trichy)

Aster Pharmacy*

Aster DM Healthcare establlshed the Aster Pharmacy business to provlde the Southern States of India with pharmaceutical and wellness produc?s. With a network of 215 pharmacies ?n this regl?n, the company alms to enhance accessibility to healthcare produc?s and Services. These pharmacies offer a wlde range of Items, including nutrltlonal supplements, baby care produc?s, skincare Items, and home healthcare produc?s.

Pharmacies in India operated by ARPPL under brand license from Aster

Financial Performance 2024

Aster India Financial Performance

Over the pastflve years, India operations have experienced slgnlflcant growth, with a CAGR of 23% ?n revenue and 38% in EBITDA up to FY2A. This has been drlven by the capacity expansi?n, average revenue per occupled bed (ARPOB) growth, increasing International revenue and offerlng advanced quaternary and tertiary healthcare Services.

Revenue and EBITDA

The Consolidated revenue grew by 24% to INR 3,699 Crs ?n FY24 as compared to INR 2,983 Crs ?n FY23. The growth ?n revenue ?s supported by addition ?n bed capaclty by 550+ beds ?n the last year and YoY growth of 10% ?n ARPOB reaching to INR 40,100 ?n FY24.

Consolidated Operatlng EBITDA exhlblted strong growth, ?ncreased by 30% to INR 620 Crs ?n FY24 from INR 477 Crs ?n FY23. Operatlng EBITDA Marg?n has ?mproved to 17% ?n FY24 as compared to 16% ?n FY23 malnly alded by cost eff?clencles, operat?onal leverage, and Labs break even on Q4 FY24.

Aster India Profit & Loss Statement

(INR in Crs)

Particulars	FY 2024	FY 2023	YoY%
Revenue from Operations	3,699	2,983	24%
Material Cost1	916	779
Doctor Cost	816	647
Employee Cost	666	581
Other Cost	682	499
Operating EBITDA2	620	477	30%
Employee Stock Option Expenses	5	0
Movement ?n FV of contingent consideraron payable	-4	0
Variable operation and management tees	31	24
EBITDA Post Ind AS	588	453	30%
Depreclation	222	194
Finance Cost	111	87
Other Income	25	38
Profit Before Tax	281	210	34%
Tax	57	32
Share of Proflt/(Loss) of Associates	(11)	(11)
Profit After Tax3	213	167	28%
NCI	25	20
Profit After Tax (Post Non-Controlling Interest)	188	147	28%
Tax Impact	52	-
Adjusted PAT4	240	147	63%

1. Material Cost% (Ex.Wholesale pharmacy) for FY24 is 22.07. and FY23 ?s 23.5%.

2. Operatlng EBITDA for the period FY24 exeludes the ESOP Cost of INR 5.3 Crs. Movementin fair valu? of contfngent consideraron payableof INR (4.4) Crs. Variable O&M fee amountlngto INR 31.0 Crs [FY23 : 23.7 Crs] [Our Operatlng & Management (O&M) agreements, encompasses both fixed and variable component. While the fixed component of the O&M fee is dellneated ?nto depreciation and finance costs as per Ind AS 116, whereas the variable component falls outside the scope of IndAS 115. leading to an incompleta reflection of the standards impact in EBITDA],

3. PAT for FY24 ineludes INR 8.44 erares attrlbutable to the Shared Services of GCC which has been dassified under dlscontmued operations following its sale to Aster DM Healthcare FZC in Q4 of FY24."

4. Adjusted PAT exeludes a one-tlme Impact due to recogmtion of Net Deferred Tas Llability to the tune of INR 52.4 erares., arising out of transition to New Tax Regime under the Income Tax Act, following the segregation of the GCC buslness.

Costs

• Material cost as a percentage of revenue (excl. Wholesale

Pharmacy) has steadily declined over a period, which was 25,3% in FY22 to 23,5% in FY23 and further reduced to 22,0% in FY24, This reduction reflects effective cost management, strategic procurement, and operat?onal efficiencies implemented across the business units

• Employee cost as a percentage of revenue has also declined to

18% in FY24, compared to 19.5% in FY23, on account of similar correspondingly increasmg revenue across business units without increase in the employee cost,

Finance Cost

Finance cost for FY24 was INR 111 Crs as compared to INR 87 Crs ?n FY23 The ?ncrease was primarily due to hlgher borrowings and lease liabilities in the hospital business durlng the last year, prlmarily focused on new capital expendlture

Depreciation

Depreclation for FY24 was INR 222 Crs as compared to INR 194 Crs in FY23, The increase was primarily due to capaclty addition to the tune of 550+ beds and another gross block,

Taxation

Current Tax and deferred tax expenses were at INR 57 Crs ?n FY24 as compared to INR 32 Crs ?n FY23, on account of an ?ncrease in proflts from the hospital business.

Net Profit After Tax

• The companys PAT (post non-controlllng ?nterest) increased

from INRI4-7 Crs ?n FY23 to INR 138 Crs ?n FY24, representlng a growth of 28%. VVhen excluding the one-tlme tax impact, the adjusted PAT shows even stronger growth, ?ncreasing from INR 147 Crs in FY23 to INR 240 Crs ?n FY24, a significant ?ncrease of 63%,

Dividend

For financial year 2024, the Board recommended a 20% final dividend of INR 2,0 (face valu? of INRI 0 each) per equity share, The dividend is subject to the approval of shareholders in the Annuai General Meeting (AGM) of the Company,

Aster India Balance Sheet

(INRinCrs)

Particulars	As at Mar 31, 2024	AsatMar 31,2023
LIABILITIES
Shareholders Equity	500	500
Mlnorlty Interest	158	157
Other Reserves	897	719
Land Revaluation Reserve	460	460
Gross Debt	669	597
Lease Liabilities	714	533
Other non-current liabilities	581	507
Other current liabilities	429	414
Total Liabilities	4,409	3,887
ASSETS
Property, Plantand Equipment (including CWIP)	2,487	2,185
Investments (including Goudwlll)	264	259
Rlghtto Use Assets	608	420
Inventarles	111	99
Cash, Bank Balance and Current Investments	114	87
Other non-current assets	285	297
Other current assets	541	540
Total Assets	4,409	3,887

Note:

? The CWIPfor ongoing projects amounts to INR 362.7 Crs for FY24 [FY23: INR 337,6 Crs]

¦ The Group has acqulred addltlonal 3.39%stake for a cash conslderation of INR 34,9 Crs in Malabar Institute of Medical Sciences Ltd (MIMS), a material subsidian/ of the Group from several mlnorlty shareholders durlng the period Aprll 2023 to March 2024, Consequent to the sald acqulsition, shareholdingof the Group in MIMS has ?ncreased from 76.01 %to 79.40%.

Fixed Assets

Overall gruss block as un March 31, 2024 ?s INR 2,487 Crs as compared to INR 2,185 Crs as on March 31, 2023. The rlse ?s primarily due to capacity addition and medical equipment.

Gross Debt:

• Total Borrowings as on March 31, 2024 were INR 669 Crs as compared to INR 597 Crs as on March 31, 2023. The ?ncrease ?s primarily due to investments in capacity addltlun.

• The Companys balance sheet remained strong wlth Net debt to EBITDA (Pre IND-AS) reducing to 1.1 times as on 31st March 2024 v/s 1.3 times as on 31 st March 2023.

Lease Liabilities:

Overall Lease Liabilities as on March 31, 2024 were INR 714 Crs as compared tu INR 533 Crs due to capacity addltlun at Whltefleld and G Madegowda,

Aster GCC Financial Performance

Revenue from operations in the Companys GCC business was INR 10,279 Crs ?n FY24 whlch had grown by 15% from FY23, The growth was malnly drlven by growth in Aster and Medcare Hospltals in UAE. The Companys Inpatlent Count grew by 12% and Outpatient Cuunt grew by 9%, indlcatlng that the overall revenue growth were malnly drlven by volume growth. Due to hlgh Insurance penetration in the GCC markets, tariff hike was limited.

EBITDA in the Companys GCC business was INR 1,234 Crs ?n FY24 whlch had ?ncreased by 11% from FY23, EBITDA marglns ?n FY24 was 12.0%. EBITDA marglns in GCC are generally lower due to higher contributions from pharmacies and tariff pressure due to Insurance penetration.

In the recent move, the company has segregated ?ts GCC and India operations on Aprll 3,2024. At the time of segregation, GCC business had 15 hospltals wlth 1,416 beds, 116 cllnics and 292 pharmacies,

Aster India Operating Performance

Increase in Bed Capacity

The total bed capacity increased to A,867 as of March 31,2024 from 4,317 beds as of March 31, 2023. The Company added 550+ beds last year, includmg 286 beds in Aster Whitefield, Bangalore and two new O&M hospitals- 148 beds in Aster PMF, Kollam and 100 beds ?n Aster G Madegowda, Mandya. Aster aims to increase ?ts bed capacity to 6,500+ beds by FY27, alignmg with its strateglc roadmap to expand its footprlnt and become a top-three healthcare player in India.

Grovuth in Avg. Occupied Beds

The Avg Occupied beds grew by 12% to 2,362 beds ?n FY24 from 2,103 beds ?n FY23, With this, the Company contlnued to maintain steady occupancy rates at 63% in FY24, Among clusters, Kerala achleved its peak occupancy at 79% ?n FY24, wh?le Karnataka & Maharashtra achieved 61% and Andhra & Telangana achieved 50% in FY24. These healthy occupancy rates present an opportunity to expand bed capacity and meet the rlsing demand for quallty care across the Companys operatlonal territorles, Thls strong performance also instills confidence for enterlng nearby markets

Growing Patient Volume

Total patient (ln-pat?ents and out-patlents) volume grew by 14% with

3.3 Mn+ ?n FY24 from 2.9 Mn+ ?n FY23. The number of In-patient vlslts grew by 1 3% in FY24 from FY23. There were over -2,54,200 admissions in FY24, compared to -2,25,680 admissions in FY23. Out-patient visits also increased by 1 37? from FY23 to FY24. There were nearly 3.05 Mn+ out-patient visits in the fiscal year 2024, compared to 2.70 Mn+ in the previous year.

Strong ARPOB Growth

The Company has wltnessed a strong growth ?n ARPOB, growing at 5-year CAGR of 9% till FY24, ARPOB grew by 10% to INR 40,100 in FY24 from FY23 at INR 36,500. The overall growth was attrlbuted ot three components - price hike, change in specialty mix and payor mix. The Company also believes that its ARPOB is at healthy levels as per industry standards considering 70% - 80% bed capacity is in Tier- 2 and 3 cities.

Satisfactory ALOS

The average length of stay has remamed consistent at 3.4 days ?n FY24 year on year basis.

Payor Profile

The overall payor revenue m?x witnessed a change with TPA/ Insurance patient contribution increased by 120 bps year on year to 27.3% ?n FY24 from 26.1% ?n FY23 and International patient contribution also Increased by 76 bps year on year to 5.4% ?n FY24 from 4.7% ?n FY23 ?n the overall IP revenue.

The revenue from International buslness showed an excellent performance, grew 44% to INR 183 Crs ?n FY24 from INRI 31 Crs ?n FY23. Most of the revenue carne from Maldlves, UAE, Ornan and Bangladesh.

Payor Revenue Mix

Notes

1) MVT: Medical Valu? Travel; TPA: Thlrd Party Admlmstrator; ESI: Employee State nsurance

2) ECHS: Ex-Servicemen Contributory Health Scheme; CGHS: Central Government Health Scheme

Specialty Mix

The Company continued to maintain diversified speciality revenue mix through its diligent efforts to establish a sustainable buslness model, Top slx specialtles specialitles (Cardlac Sciences, Neurology, Oncology, Liver care, Nephrology, and Orthopaedics) contributed 58% of the total hospital revenue ?n FY24 with no single specialty accounts for more than 15% in FY24.

Speciality Wise Revenue Mix

Increasing High end Medical Treatment

The Company has signlficantly advanced ?ts medical treatment capabilitles. In FY24, the Company performed transplants over 510+, up from 430+ ?n FY23, and conducted more than 1,140 robotlc surgerles, compared to 480+ ?n FY23

Core Hospital Business Performance

Revenue

Over the last flve years, the Companys core hospital buslness ?n India has achleved a CAGR of 22% in revenue and 37% ?n Operating EBITDA ?n FY24. Indlas core hospital buslness, ?ncluding dimes, grew by 23% to INR 3,519 Crs ?n FY24 from INR 2,851 Crs in FY23; excluding O&M asset llght, the revenue from core India hospital buslness grew by 20% to INR 3,395 Crs ?n FY24 from INR 2,819 Crs ?nFY23.

Hospital Revenue

(in INR Crs)

Operating EBITDA and Margin

The effective ?mplementation of cost optimization and operational leverage has resulted ?n the notable growth of 28% in core hospital operating EBITDA. It grew to INR 688 Crs m FY2A from INR 538 Crs n FY23. The operating EBITDA margin from core hospital buslness was 19.5% ?n FY2A v/s 18,9% ?n FY23 and excluding O&M Asset Light, it was 20,3% ?n FY2A v/s 19,5% ?n FY23

Hospital Operating EBITDA and Margin

(in INR Crs)

Double Digit Return Ratio

Over the past five years, the Return on capital Employed ?ROCE) from the Companys core hospital buslness improved to a healthy double digit of 23% ?n FY2A from a single digit at 2% in FY19 due to conslstent year-on-year improvements ?n operating performance.

Hospital RoCE

(In %)

Maturity Wise Hospital Performance

Motes

1) 0-3 Years Hospitals inelude: Aster Mother Hospital, Aster Whitefield Hospital Aster Narayanadri, Ramesh Adlran (IB), Aster G Madegowda, Aster PMF

2) 3-6 Years Hospital inelude: Aster RV. Aster MIMS Kannur

3) Aster India Clinics, Labs, Wholesale pharmacy and other unallocated Items are not included in Revenue & EBITDA.

A) Wayanad Institute of Medical Sciences (WIMS) details are not included above.

Conslderlng WIMS, count of hospltals in India ?s 19

5) Revenue and EBITDA shown above exeludes other ?ncome; All the numbers above are post IndAS 116 6) Operational Beds (Census) are beds as on 31 st March.,2024,

6) Operating EBITDA for the perlod FY24 exeludes the ESOP Cost of INR 5,3 Crs. Movement in fair valu? of contlngent consideration papable of INR -A.A Crs. Variable O&M fee amountlngto INR 31.0 Crs [FY23: 23.7 Crs] [Our Operating & Management (O&M) agreements. encompasses both fixed and variable component. Whlle the fixed component of the O&M fee ?s dellneated ?nto depreciation and flnance costs as per Ind AS 116, whereas the variable component falls outslde the scope of IndAS 116, leadlng to an Incompleta reflectan of the standards ?mpact ?n EBITDA]

7) ROCE (pre-tax) = EBIT/Average Capital Employed; [Capital employed exeludes CWIPand Land Revaluatlon reserve]

Over 6 Years:	Between 3-6 Years:	Betuueen 0-3 Years:
The companys well-establlshed hospitals, those operating for over six years, are making a significant contribution to the overall performance, This mature segment comprises 10 hospitals, accounting for 72% of the total operational census beds. These hospitals contributed 77% to hospital segment revenue, delivered 22.4% operating EBITDA margins in FY24 with impressive growth in ROCE standing at 32.0% ?n FY24 vs 24.7% in FY23. These matured hospitals also demonstrated healthy occupancy rate at 68% with steady ARPOB at INR 41,700 in FY24.	These hospitals have demonstrated healthy occupancy at 82% and ARPOB at INR 40,700 ?n FY24. Though the revenue contribution ?s only 15% to total hospital revenue, howeverthe operating EBITDA margins are at satisfactory levels at 18.6% with ROCE at 19% in FY24.	Most of the hospitals in this category began operations within the past year and are currently ?n the ramp-up stage. These facilities are rapidly scaling up, achieving a 53% occupancy rate in FY24 and an Average Revenue Per Occupied Bed (ARPOB) of INR 28,400. Theirfinancial performance has been satisfactory, contributing 8% to the total hospital revenue and they are expected to achieve positive EBITDA in the near future. Out of the 6 hospitals in this maturity bucket, 4 op?rate under the O&M asset-light model.

Cluster wise Performance

Kerala

Financial Performance:

Kerala cluster, contributlng 57% ?n the overall hospital business revenue, demonstrated a solid performance including revenue growth of 197? YoY to INR 2,007 core and Operating EBITDA growth of 21%YoY wlth operating EBITDA margin at 21,4% ?n FY24, aided by the sustamed high occupancy levels and pnce growth.

Operational Performance:

The Company has ?ncreased its capaclty by adding 148 beds at Aster PMF under Kerala Cluster ?n FY24. APROB of Kerala cluster wltnessed a growth of 11% YoY at INR 38,100 tn FY24 from INR 34,400 ?n FY23, due to changes ?n speclalty mix and reductlon of scheme related business.

Operational Metrics	FY24	FY2S
ARPOB (INR)	38,100	34,400
Occupancv	79%	79%
In-Patient Vlslts	1,54,200+	1.41.260+
Out-patient Visits (Mn)	-2.05	-1.85
ALOS (Days)	3.4	3.4

Karnataka & Maharashtra

Financial Performance:

The Karnataka and Maharashtra cluster performed strongly, contr?buting 31% to hospitals and clinics revenue, The dusters revenue grew by 35% year-over-year to INR 1,100 Crs in FY24, while Operating EBITDA increased by 44% with an operat?ng EBITDA margin of 19.7% in FY2A, buoyed by the successful launch of the Wh?tefield hospital ?n Bangalore. Excludlng the Whltefield hospital, the cluster achieved operating EBITDA margin of 23.4% ?n FY24

Operational Performance:

The overall cluster ?s benefitted with the Wh?tefield hospital performance, wherein 286 beds were added in FY24. The hospital achieved EBITDA breakeven within 3 months during the last quarter of FY24. Clusters APROB increased by 10% YoY to INR 53,600 from INR 48,800 in FY23 while occupancy rates also Increased to 61% in FY24 from 59% in FY23. Reflecting further upon the Whltefield Hospital project, its success is attributed to strateglc decisions such as focusing on growing specialties like oncology, creating standalone mother and chlld hospital adjacent to a multl-specialty facility, attracting top talent by offering a comprehensive range of Services and addresslng the demand for single rooms

The Company has also added 100 beds ?n Aster G Madegowda, Mandya (Karnataka) during FY24 under O&M Asset Light Model

Operational Metrics	FY24	FY2B
ARPOB (INR)	53,600	48,800
Occupancy	61%	59%
In-Patient Vlslts	63,500+	53,220+
Out-patlent Vlsits (Mn)	-0.67	-0.56
ALOS (Days)	3,2	3,1

Andhra Pradesh and Telangana

Financial Performance:

Andhra & Telangana cluster performance remained steady with a revenue Increased by 20% YoY to INR 41 2 Crs while operating EBITDA grew by 29% YoY with operating EBITDA margin at 10% in FY24 from 9,3% ?n FY23

Operational Performance:

The occupancy rates remamed steady at 50% with ARPOB at INR 28,100 in FY24,

Operational Metrics	FY24	FY23
ARPOB (INR)	28,100	27,900
Occupancy	50%	50%
In-Patlent Vlslts	36,500+	31,200+
Out-patlent Vlslts (Mn)	-0.33	-0.29
ALOS (Days)	3.9	3.8

O&M Asset Light Model

Aster has demonstrated rernarkable ag?l?ty ?n establ?sh?ng a presence across various regions thruugh ?ts O&M asset light model. As of March 31, 2024, ?t encompassed 4 hospitals with a total capacity of 528 beds, including two new O&M asset light hospitals of Aster PMF (143 beds) and Aster G Madeguwda (100 beds).

Thls segment generated revenue of INR 124 Crs during FY24 with 2 hospitals achlevlng posltlve EBITDA, underscoring ?ts growlng contrlbutlon to Asters overall performance, The asset-llght nature of thls model has facilitated faster ramp-up perlods, enabllng Aster to achleve operational excellence and profitability ?n a shorter tlmeframe compared to traditional capital-intensive projects.

Particulars	FY 2024	FY 2023
Capacity Beds	538	290
Total No of Hospitals	4	2
In Patlent Vol (nos)	19,031	5,652
Out Patlent Vol (nos)	2,49,817	78,295
Total Revenue (In Crs)	124.33	32.11
EBITDA (In Crs)	(0.90)	(12.47)

(Note: OSM asset light hospitals ?ame: Aster Mother, Aster Narayandri, Aster G Madegowda, Aster PMF)

IMew Businesses (Aster Labs & Pharmacy)*

No. of Facilities

Financial Performance:

The overall Labs and Wholesale Pharmacy business grew at a hlgh double-digit CAGR of 51% slnce FY22 to deliver revenue of INR 286 Crs ?n FY24 from INR 126 Crs ?n FY22. With thls hlgh growth, the overall revenue contrlbutlon from Labs and Wholesale Pharmacy businesses ?ncreased to 8% ?n FY24 from 5% ?n FY22. It ?s to be noted that our Lab business became EBlTDA-posItlve during the last quarter of FY24.

Change in financial Ratios (Standalone)

Ratio	FY24	FY23	Change
DebtorTurnover Ratio (times)	17.05	17.74	(4%)
nventory Turnover Ratio (times)	10.51	11.26	(7%)
nterest Coverage Ratio (times)	3,67	4.52	0.85 times
Current Ratio	3,82	0.78	392%
Net Debt Equlty Ratio	0,24	0.21	15%
EBITDA Margln (%)	17.68	18.80	(1,12%)
PAT (Post-NCI) Margln (%)	8%	11 %	(32%)
Return on Net Worth (%)	5%	6%	(14%)

Investment Plan

The Company added more than 10% to the current bed capac?ty ?n FY24, reaching a total of A,867 beds as of March 31, 2024, The Company has added 550+ beds durlng the last year, including 286 beds in Aster Whltefleld at Bangalore and 148 beds at Aster PMF and 100 beds at Aster G Madegowda.

To capitallze on the opportunlty of Indias large population and low hospital bed denslty, the Company ?s making substantial capital ?nvestments, almlng to ?ncrease total bed capac?ty to 6,500+ by FY27.The Company ?s planningto add approximately -1,700 beds ?n the next three years through brownfield and greenfield projects.

As per the strategy, out of total bed additions -607o of beds wlll be the part brownfield expansi?n and 407? wlll be part of greenfield. This prudent mix of brownfield and greenfield ?s well thought through so that there wlll not be any major dilution of the EBITDA margin ?n coming years.

Brownfield Expansi?n

The Company wlll add 200 more beds at Aster Medcity in a phased manner, with 100 beds each ?n FY25 and FY27. Thls significant bed addltlon wlll result in expandlng the total bed capac?ty to 950 beds ?n Aster Medcity. Another 350 beds wlll be added at Aster CMI in FY27, making Aster CMI the single largest hospital ?n Bengaluru with a total bed capac?ty of 850+ beds. The Company further alms to add 100 beds at Aster MIMS Kannur, 159 beds at Aster Whltefleld and 75 beds at Aster Ramesh Ongole, 75 beds at Aster MIMS Calicut, as part of thelr brownfield expansi?n to yleld better marglns through operatlng leverage.

Greenfield Expansi?n

The Company plans to add 718 beds underthe greenfield expansi?n plan at two dlfferent cltles with 264 beds at Kasargod and 454 beds atTrlvandrum. The greenfield projects are progresslng well, with the Kasargod and Trlvandrum projects expected to be operatlonallsed ?n FY26 and FY27 respectlvely.

Way Forward

Strategic priorities	Focus Areas
Capital Investment	Incurrlng substantial brownfield and greenfield ?nvestments ?n the pipeline to drive occupancy rates across clusters
Cost Optimisation	Aster DM Flealthcares flnanclal performance for FY24 shows positive signs with a PAT (Post NCI) of INRI 88 Crs We wlll continu? to malntaln a robust performance with cost optimisation and overall operatlonal efflclency.
Improving Payor and Specialty Mix	Focuslng more on nlche speclaltles and cuttlng-edge work to drive better ARPOB and subsequently marglns too.
Optimising Returns	Asset Llght low Capex buslness model to achleve better returns
Inorganic Growth	Expandlng ?n new stroke exlstlng and new geographles to further strengthen our posltlon and to be recognlsed among top 3 healthcare players ?n India,
Focus on Virtual Care	Connectlng patlents through forthcomlng digital app for better reach

Human Resources

Aster DM Healthcare aims to build a purposeful work environment, fosterlng a passionate and diverse workforce, unlted ?n its mission to deliver quallty healthcare. The Company works towards addlng valu? to patients, staff and the wlder community, It offers team members comprehenslve benefits and world-class tralnlng programmes, empowerlng them to grow professionally. Furthermore, Asterians have access to career opportunltles with global exposure across the organisations network.

Aster believes ?n the potential of its employees and strlves to create a space where everyone feels valued and has the opportunlty to contribute. The Company celebrates diverslty ?n nationality, culture, perspective and generat?on, recognising the strength that comes

from varied viewpoints. Aster also takes an active role in supporting ocal communltles through medical ald ?nitiatives and disaster re?ef efforts, offering employees the chance to glve back to the communltles, The Company equlps ?ts workforce with the skills and knowledge requlred to Inn?vate ?n digital patient care and Al through the Aster Advantage Programme, Upholdlng the val?es of passion, respect, integrlty, compasslon, excellence and unity, Aster strlves to deliver on ?ts brand promise of "Well Treat You Well" ?n all aspects of ?ts operatlons. As of March 31, 2024, the Company has a workforce of 19,502 ?ncluding 2,649 doctors, 6,235 nurses, 7,563 other healthcare workers and 3,055 outsourced staff.

For more Information, please refer page 106 of Human Capital

Internal Control System and their Adequacy

Aster DM Healthcare prlorltlses strongflnanclal Controls to safeguard the Companys assets and ensure accurate financial reporting establlshlng Internal pollcles and procedures that govern the orderly and efficient conduct of business. These Controls focus on

The Internal control system ?s deslgned to be proportlonate to the slze and complexlty of Asters operatlons, Thls ensures ?t provldes a reasonable level of assurance ?n several key areas, Firstly, the Controls help the Company achleve ?ts strateglc objectlves by streamllnlng operatlons and mltlgatlng risks. Secondly, they prumote operatlonal efflclency by optimislng buslness processes and minimlslng waste. Thlrdly, the Controls ensure the accuracy and reliability uf financial reporting, fosterlng trust and transparency with ?nvestors and other stakeholders. Flnally, Asters Internal Controls are deslgned to maintain adherence to all applicable laws and regulations, safeguarding the Company from legal repercusslons and reputational damage.

To further strengthen the internal Controls, Aster ?ncorporates several addltlonal measures. The Chlef Financial Officer (CFO) annually certlf?es the exlstence of effectlve Infernal Controls wlthln the Companys Corporate Governance report, Thls adds another layer of accountablllty and transparency. Aster also has a comprehenslve Infernal audlt programme ?n place, Thls programme ?s managed by a dedlcated Infernal audlt team, supplemented by the expertlse of an external audlt firm. The Audlt Commlttee of the Board oversees the Infernal auditfunction, ensurlng ?ts ?ndependence and effectlveness. Interna! audltors regularly update the Audlt Commlttee through reports and presentations, keeplng them ?nformed about the State of the Companys Infernal Controls

Flnally, Aster employs a rlsk-based approach to Infernal audltlng,

The Audlt Commlttee approves an audlt charter that defines the scope and authorlty of the Infernal audlt functlon, Based on a thorough a risk assessment, the Infernal audlt team develops a plan to eval?ate the design and effectlveness of Infernal Controls across the orgamsation. This approach ensures that Asters Infernal Controls are focused on mltigatlng the most slgnlficant risks faclng the Company, provlding the Board with greater assurance about the Companys overall financial health and rlsk management posture

Cautionary Statement

Certain statements in the Management Dlscussion and Analysls section concermng future prospects may be forward-looking statements that involve several underlylng identified / non- dentified risks and uncertainties that could cause actual results to differ materially. Besldes the foregoing changes ?n the macro envlronment, some unprecedented challenges may pose an unforeseen, unprecedented, unascertainable and constantly evolvlng risk(s), Inter alia, to the Company and the envlronment in which ?t operates, The results of these assumptlons made, relying on avalladle Interna! and external Information, are the basis for determlnlng certaln facts and figures stated in the report, Smce the factors underlylng these assumptlons are subject to change over time, the estlmates on which they are based are also subject to change accordingly. These forward-looking statements represent only the Companys current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made, The Company assumes no obligation to revise or update any forward-looking statements, whether because of new nformation, future events, or otherwise