Investor Expectations from Management Teams in Healthcare

1. EXPECTATIONS OF INVESTORS FROM THE MANAGEMENT TEAM DURING AND AFTER INVESTMENT • Presentation At: • Dr. Thokchom Nirod Kumar Singh • Associate Director – Healthcare & Life Sciences, • Middle East, North Africa & South Asia

2. The Frost & Sullivan story • 1961 • 1990 • Today • Emerging Research (1961-1990) • Growth Partnership (1990-Today) • Visionary Innovation(Today-Future) • Pioneered Emerging Market & Technology Research • Global Footprint Begins • Country Economic Research • Market & Technical Research • Best Practice Career Training • MindXChange Events • Partnership Relationship with Clients • Growth Partnership Services • GIL Global Events • GIL University • Growth Team Membership™ • Growth Consulting • Visionary Innovation • Mega Trends Research • CEO 360 Visionary Perspective • GIL Think Tanks • GIL Global Community • Communities of Practice

3. The Frost and Sullivan: Healthcare Story Longevity, Reliability Global Team Tracking Change Market Analysis + Strategic Consulting Mega Trends and GIL Community • We have over 50 years of insights and partnerships in the health sciences ecosystem • We support our clients so they see the future of their industry through the lens of global shifts and changing technology • We base our analysis on a deep understanding of market and technology trends with options to tap into our consulting expertise • We bring together innovators and thought leaders to create a global community for change We Are the Market Leaders. The Statistics Prove It. full-time healthcare consultants/analysts 40+ of our staff are ex-Big Pharma, medical device, corporate hospitals, health insurers and top 1,000 companies 200 >300,000 hours spent annually on healthcare research, tracking and monitoring market metrics, competition, technology, best practices, Mega Trends 44 offices emerging market countries 33 20+ MDs and PhDs • 3

4. Healthcare – Areas of Expertise • Health & Wellness Benefit Strategy, Organizational Health Risk Assessment, Benefits Design, Vendor and Insurer Selection, Program Implementation, Employee Engagement and Communication, Program Monitoring and ROI Calculation Pharmaceuticals and Biotech Medical Devices & Diagnostics Healthcare Delivery Health & Wellness Benefits • Cardiology, Hypertension, Diabetes, Oncology, CNS, Pain Management, Respiratory, Women’s Health, Drug Delivery, Emerging Areas, Pipeline Analysis, Vaccines, Antibiotics • Cardiovascular & Orthopedic Devices, Home Care, Surgical and Infection Control , General Medical Devices, Hospital Supplies and Products Wound Care / Management Products, Genomics, Proteomics, Cellomics, HTS, SNP, IVD, Genetic Testing, Molecular Diagnostics • Public and private Hospital Services, Primary care and specialist care center evaluations, Diagnostic centres, healthcare REIT, Medical education and healthcare human resources, healthcare needs, and gap analysis for new investments • Strategic and Business Planning, Product and Service Design, Sales and Marketing Strategy, and IT Strategy for Insurance Regulators, Private Health Insurance Companies and Public Healthcare Financing Schemes Healthcare and Life Sciences IT Patient Monitoring & Imaging Health Insurance Financial Services • Electronic Medical Records, HIS, Clinical Information Systems, Telemedicine, Life sciences IT, Outsourcing, Healthcare Outsourcing, Clinical Solutions Managed Care Services, Medical Care Providers, Consumer-based Healthcare, Wellness and Health Management • Cardiac Monitoring, Defibrillators, Multi-Parameter Monitoring, Sleep Apnea Monitoring, Glucose Monitoring, Blood Pressure Monitoring, PACS, MRI, Cardiac, CT, Ultrasound, PET, Nuclear, Imaging, Core Imaging Modalities, Imaging Agents, Imaging Software, PACS & Imaging IT , Digital Imaging • IPO, Due Diligence, Mergers and Acquisition, Strategic Partnership, Business Matching

5. Healthcare Industry in India: $ 280 Billion - 2020

6. India Healthcare Industry Analysis

7. PE investment 2015:Snap shot http://www.ventureintelligence.com

8. Key Dimensions/Dynamics of the Care Delivery System from Investor Standpoint • Cost • Revenue Market • Technology • People • Processes

9. 360 degree Health System Immersion • Comprehensive Market Datapoints – Growth Dimension • Deep dive within the value chain • Hospitals Value Chain • Medtech Value Chain • Pharma Bio Value Chain • Evolving Competition Metrices • Unique Value Creation Opportunity

10. Deep Dive Insights • Ability to convert competitive/operational chaos into valuable business insights • Construct the right sets of query and probes • Predict disruption in non-value addicting value elements • Understand emerging customer segments • Construct the commercial/business/value model • Stay competitive and sustainable

11. PATIENTS • INSURERS • PROVIDERS • POLITICIANS • Ability to navigate the many stakeholders with varied motivations… • Help me and my family become and remain healthy • Ensure my financial security • Protect my assets from being taken or destroyed • Avoid paying for unnecessary services • Get paid for services rendered • Facilitate Innovation • Stay in office while balancing the budget • Make health care affordable and conveniently accessible

12. Understanding and setting right expectations • PE firms should work at arm’s length transaction because it is most likely that their are other limited partners in a fund that may be interested solely in a financial return: • The goal of hospital seeking investment is vital, long term Vs short term • Cognizance for common goals...the deal could push the parties involved in varied directions • Understanding and agreeing on the key driving forces of growth - Doctors, Technology and patient class and reach • No hidden stories on outstanding, liabilities and separate ventures • Ability to leverage what is best in partners - industry knowledge/financial markets • Clarity on major roadblocks in development and scaling • Both parties should focus on what they do best – core competencies

13. Understanding the Journey together… • Story in between: Ability to manage the journey • Frequent re- alignment of common goals and new intermittent targets • Look at avenues and potential to commercialize certain aspects of the venture/organization / department • Clear thoughts on expansion of existing departments and addition of new department / Facilities / technologies based on ratified market/ground realities • Strengthen the IT Systems and Data analytics capability (BI) • Ability to leverage management consulting entities – institutional levers with regional/global mindshare

14. Predict and Adapt New Processes • Shifting the Financial Gravity of the System • Shifting the Health Focus of the System • Shifting Health Frameworks • Disruptive Innovation in Business Models • Shift in Value Proposition of Hospital and Primary Care Settings • Innovation in Business Models • 80% of healthcare is currently provided in or near the home – technology will continue to push care delivery in this direction • Primary Care/Asset Light model settings will co-ordinate overall care • Care Delivery Settings Change

15. Innovation in Hospital Business Models Focused Value Chain Hospital General Hospital • Value Proposition: • When you know what you need we can provide it efficiently, effectively • Value Proposition: • Don’t know what’s wrong? • – We can address any problem you bring

16. Care Delivery will be provided in or near the home? • 100% • Healthy, Independent Living • Healthy, Independent Living • Community Clinic • Community Clinic • HOME • CARE • Chronic Disease • Chronic Disease • Doctor • s Office • Management • Management • Doctor • ’ • ’ • s Office • Assisted Living • Assisted Living • Quality of life • RESIDENTIAL • Specialty Clinic • Specialty Clinic • CARE • Skilled Nursing • Facility • Skilled Nursing Facility • Community • Hospital • ACUTE • Community Hospital • CARE • ICU • ICU • 0% • $1 • $10 • $100 • $1,000 • $10,000 • Cost of care per day

17. Primary Care settings will co-ordinate overall care ?

18. Maturity to Absorb Disruptive Technology • The continuing IT revolution • Mobility in Healthcare • Disruptive Technologies • Connected “Always on” Devices • Personal Health Ecosystem • Innovation Across the Entire Value Chain • Increased Value Creation • Innovation

19. Ability to innovate – across the entire value chain

20. The vast majority of innovations, as measured by volume, occurs in the area of products • Leading to a shift in value creation… • Volume of Innovation Efforts • Last 10 Years • Hi • Lo

21. Few innovations create the most value, and those in the product segments of the value chain produce the lowest yield • Leading to a shift in value creation… • Cumulative Value Creation • Last 10 Years • Hi • Lo

22. The next growth hunger requires “Innovation” to break barriers in Emerging MarketsAt the heart of innovation is “Core Disruption” • Target Turnover - INR XXXX Cr NS 2 • C=Difficult to Capture, • but possible • Services with Good Growth Potential but low on synergy NS 1 • Services with Synergies (Technology/ customer markets) • B=Moderately • Difficult • New Products/Services Adjacent Services • CAGR % • Turnover: INR YYY Cr • CAGR % • A= Easy to Capture • Competitive Services Adjacent Services • Existing Business • CAGR % • Competitive Services • Known Common Serviecs • Known Services • 2017 • 2020 • * NS – New Services • Vision 2020 • Existing Business

23. The Creative Destruction Dimension: Healthcare 2020-2025 Critical to absorb such dimension in new investment paradigm Source: Creative Destruction of Medicine, Eric Topol

24. Your Contact For Additional Information Thank You! Contact Dr. Thokchom Nirod Kumar Singh Associate Director – Healthcare & Life Sciences, Middle East, North Africa & South Asia 50 Years of Excellence: “We Accelerate Growth” Visit us at www.frost.com E-mail : dr.nksingh@frost.com Mobile : +919901144022 24