Aster DM Healthcare Ltd

We have been recognised both nationally and regionally for multi- specialty care as well as for some of our key Centres of Excellence such asTransplant program, Oncology, Neuro-sciences, and Paediatrics to ?ame a few.

Dr. Azad Moopen

Founder Chalrman and Managing Director

DearShareholders,

Hope you are in the best of health and spirits.

The year FY24 has been one of the most pivotai and remarkable years in the history of Aster DM healthcare.

We concluded the segregation of the company, with the sale of the GCC entity, leading to a sep?rate India listed entity which remains focused on advancingthe India growth story. As Moopen family, we are very thankful to our shareholders for maintaining their trust in us in this journeyand we remam committed to our strategy to continu? creating valu? for all of you as we move forward together.

As you know, India's potential and its accelerated growth especially in the post Covid era has really transformed the healthcare landscape. The enhanced penetration of insured population plus the aspiration of the large middle class segment to go to corporate trusted hospital brands has ushered in a new era for Indian healthcare. In this landscape. in a relatively shorter period of time, Aster has catapulted itself on two levers which underpins our existence - Clinical Excellence and Service Excellence.

We have been recognised both nationally and regionally for multi-specialty care as well as for some of our key Centres of Excellence such as Transplant program, Oncology, Neuro-sciences, Paediatrics to ?ame a few. In the last financial year. Aster was awarded the 'Best Hospital Chain' by The Economic Times' and The Financial Express' and 'Best Healthcare

Brand' by The Economic Times'. Aster Medcity, Aster CMI and Aster MIM5 Calicut were featured in the top rankings by The Times of India', 'The Week', 'Outlook' and 'Newsweek' global media. I am also delighted to share that Aster CMI Hospital received the first NABH Digital Platinum Accreditation in South India.

We have always believed in bringing together best talent with latest technologies to create the best outcome for our patients that sets gold class standards for healthcare. This has resulted in some of the most renowned medical experts joining us to elevate our centres of excellence who offer top-notch clinical Solutions for some of the most complex cases. This also led to the expansi?n of our presence in the heart of Bangalore through the launch of Aster Whitefield Hospital, a 506 bed multi-specialty care facility which houses one of India's most advanced Oncology treatment centres.

From 10 hospitals in India in 2018, we have significantly expanded our footprint, reaching a milestone of 19 hospitals, 215 pharmacies and 232 labs and PECs. With a substantial capital expenditure of INR 1,100 Crs invested in the India business over the last five years, our bed capacity increased to 4,867 beds in FY2024. This has been supported by our growth in employee strength to 19,502 including 2,649 doctors, 6,235 nurses and 2,873 paramedical staff.

On the operational front, we have taken steps to optimise our resource use by focusing on growing our existing hospital network and improving our specialty mix. Currently, almost 58% of revenue comes from niche specialties (such as Cardiac, Neuro, Oncology, Nephrology, Gastro & Llver care and Orthopaedlc Care). This has further led to slgnlflcant ?mprovement across key metrlcs such as ARPOB and manpower per occupled bed. Our relentless ?nltlatlves have enabled us to malntaln our posltlon as one of the fastest-growlng hospital chalns ?n India over the last five years with our revenue growing at a CAGR of 23% and EBITDA growing at a CAGR of 38%.

If we look at our performance over the past year, our Revenue surged by 24%, reaching INR 3,699 Crs for our India business, fuelled by strateglc bed capacity ?ncrease of over 550 beds and a 10% rlse ?n ARPOB. In fact, our

We have always believed in bringing together the best talent with the latest technologies to create the best outcome for our patients that sets gold class standards for healthcare. _

International business grew faster by 44% YoY to INR 188 Crs in FY24 from INR 131 Crs in FY23.

Our focus on operational efficiency also yielded excellent results, with Operating EBITDA growing by an impressive 30% YoY to INR 620 Crs. This was further bolstered by the strong performance of our mature hospitals, delivering a stellar 22.4% Operating EBITDA margin and 32% ROCE in FY24.

Owing to this success, the Board is pleased to recommend a final dividend of INR 2.0 per equity share (face valu? of INR 10 each) for the financial year 2024, subject to the approval of shareholders. We have been grateful to our shareholders for their resounding approval of our segregation, resulting ?n substantial cash proceeds of USD 907.6 Mn. Leveraging our strong cash posltlon, we were delighted to distrlbute -80% of the recelpts, as a speclal dividend of INR 118 per share.

We are also thankful and appreclatlve of the wealth of expertlse brought forward by our Board and top management team to facil?tate the successful segregation of India and GCC buslnesses. Their diverse experlences and this transactlon have become a testament to the exemplary level of governance malntalned by our Board.

Atthlsjuncture, we are now confldent of the opportunlty that the future holds for Aster and alm to soon achleve the goal of belng one of the most trusted, loved and adored healthcare brand by the people we serve.

We thlnk of ourselves as guardlans of health of the communlty we serve; and our efforts to support their health and well-belng will continu? beyond our business efforts. I am pleased to share that our communlty outreach program - Aster Volunteers, has emerged as one of the world's largest volunteering programme, havlng ?mpacted 5 Mn+ lives and recognlsed with numerous

prestigious awards for the impactful social initiatives. We are proud recipients of the Global Award for Sustainability by the Golden Peacock Awards. Our CSR initiatives at Aster Volunteers were adjudged 'Best CSR Program - India' at the ET Healthcare Awards.

All these accolades only spur us to further raise the bar and create new milestones of impact with our focus and deep sense of purpose.

We are fully dedicated to further expanding our presence and sustaining this positive momentum. Post segregation, our efforts are dlrected towards dynamically ?ncreaslng our footprint ?n India. Through both greenfleld and brownfleld opportunltles, we are almlng to take our total bed capacity ?n India to 6,500+ ?n the upcomlng three years.

With a clear visi?n and a strategic roadmap in place, we are polsed to capltallse on the growth opportunltles ?n the Indlan healthcare sector. Our sharpened focus as a pure-play India entlty, comblned with a robust expansi?n is golng to enable us to create exponentlal outcomes.

With an experlenced and proven leadershlp team on the ground, we are confldent of delivering and sustaining our growth for years to come. We are equipped to surpass ?ndustry standards, exceed the expectations of our valued patients and generate exceptlonal returns for our shareholders.