Warm Welcome Shareholders. 22nd Annual General Meeting June 10, 2013

Transcription

1 Warm Welcome Shareholders 22nd Annual General Meeting June 10, 2013

2 Performance Snapshot - FY 2012 Revenue * EBITDA * 31% 36% 2291 INR Crores (Except EPS) PAT^ 277% 846 EPS^ 273% * Excluding Divested Ascent Operations ^ 2012 Includes Profit from Sale of Divested Ascent Operations

3 Performance Snapshot - FY 2012 INR Crores Debt Equity Ratio* Networth 48% Times *Net of Cash Gross Block %

4 Revenue & EBITDA - Division wise Performance excluding Divested Operations Business Revenue EBITDA % Revenue EBITDA % Revenue Growth% INR Crores EBITDA Growth % 1, % Specialties 1, % 32% 76% % Pharma* % 29% -32% 1, % Total 2, % 31% 36% * 2011 Pharma included a one time Licensing Income of Rs. 83 Crores

5 Performance by Region Operational Revenues excluding Ascent RoW 13% Africa 10% South America 13% Australasia 13% North America & Europe 51% RoW 36% Africa 11% North America & Europe 34% South America 15% Australasia 4% 97% 1,156 52% INR Crores % 10% 28% North America & Europe Australasia South America Africa RoW

6 Key Financial Parameters Particulars Dec 11 (audited) Dec 12 (audited) EBITDA Margin 20% 24% Debt (Rs. In Crores) 2,566 1,597 Cash and cash equivalents (Rs. In Crores) Net Debt (Rs. In Crores) 2,306 1,431 Debt /Equity (Net of Cash) Interest / Revenue 7% 7% Effective tax rate 14% 11%

7 Value Appreciation Stock Price Movement Market Capitalisation(INR Crores) , , ,130 1, March March March March March March March March March March *QIP share issue in 2010

8 Highlights Specialties (Agila) Operational Received the US FDA approval for the Sterile Penems facility in Brazil Received USFDA approval for the Sterile facility in Poland, total US FDA approved facilities at 9 64ANDAfilingsin2012 Received 25 product approvals from the USFDA Commercialised 25 new products in US Joint Venture with Jamp Pharma Corporation, Canada Collaboration with Eli Lilly to expand delivery of cancer medicines in the emerging markets Financial Represents60%ofthegrouprevenueand82%ofthegroupEBITDA Revenuesgrewby32%toRs.1,365Croresin2012vs.Rs.1,032Croresin2011 Operational EBITDA grew by 100+% to Rs.289 Crores in 2012

9 Highlights Pharma & Biotech Operational 8 ANDA filings in ANDA approvals (including 2 PEPFAR) Entered into a collaboration with Gilead Sciences Inc for high-quality, low cost generic HIV medicines Launch of Vancomycincapsules in US Regulated markets, a difficult to manufacture product & the only Indian generic in the market Investment from French Development Financing Institution Proparcoin the form of equity participation for 20% stake in Strides Africa Consolidation of stake in Inbiopro Entered into agreement with Bio- Xcell for customised biotech facility Financial Represents 40% of the group revenue and 18% of the group EBITDA Revenuesgrewby29%toRs.926Croresin2012vs.Rs.716Croresin2011 Operational EBITDA grew to Rs.116 Crores in 2012

10 R&D Update

11 Significant post balance sheet events Sale of Agila Specialties Division to Mylan Inc., USA Business acquired by Mylan Inc for USD 1,600 Million cash (approx Rs. 8,610 Crores) and potential additional consideration of up to USD 250 Million (approx Rs. 1,345 Crores). Adjusting for costs related to contingent conditions, expected consideration is USD 1,725 Million(9,283 Crores) The transaction has been independently approved by the respective Board of Directors of Strides, its overseas subsidiary and Mylan Inc. Closing of the transaction is conditioned upon Foreign Investment Promotion Board approval, customary anti-trust approvals and other closing conditions. The transaction does not include Agila Biotech Expected closing of Transaction in Q4 13

12 Significant post balance sheet events Utilization of Proceeds USD Mn Expected Consideration (Net of Contingent Condition Costs) 1,725 Utilization: Current Net Debt ~ 225 Taxes ~ 280 Employee Incentive ~ 50 Minority Interest & Transaction Costs ~ 90 Debt Like Items ~ 70 Growth Capital 100 Capex ~ 50 Balance in Escrow Account for 4 Years 100 Dividends to Shareholders ~

13 The Road Ahead for Pharma Division Segments Overview and Key Growth Drivers Agila Biotech Agila Biotech marks the foray of Strides Arcolab into the biologics space Planned investments for setting up a next-generation biologics facility in Johor, Malaysia, and to build a 15,000 sq. ft. state-of-the-art R&D facility in Bangalore Pharma Generics Leading generics platform focused on soft gelatin and immunosuppressants for the US and European markets Strong R&D capabilities with US FDA approved manufacturing infrastructure Exhaustive pipeline focused on products with high entry barriers to drive growth Africa Business Leading sales and marketing platform for branded generic pharmaceuticals and over-the-counter medicines across Central and Sub-Saharan Africa Growth driven by launch of new products, expansion into new markets, and establishing local manufacturing 13 India Brands Emerging as a regional player in Southern India in niche branded pharmaceutical products Portfolio of recognised brands in fast growing therapeutic segments

14 2013 Progress Continues Q1 13 Standalone Performance Revenues grew by 45% to Rs.193 Crores(Rs.133 Crsin Q1 12) EBITDA grew by 100+% to Rs.47 Crores (Rs.18 Crs in Q1 12) Reported Revenues at Rs.193 Crores and Reported EBITDA at Rs.47 Crores, EBITDA Margin of 24% Profit before Taxes grew by 100+% to Rs.28 Crores against a loss of Rs. 28 Croresin Q1 12 Profit after Taxes grew by 100+% to Rs.32 Crores against a loss of Rs.28 Crores in Q1 12 EPS grew by 100+% to Rs.5.36 Q1 13 Pharma Highlights Pharma business scaling up and is in line with guidance for Revenue guided at Rs croreswith an EBITDA of Rs. 200 Crores, EBITDA Margin of 20% (11% in 2011) Consolidated Pharma Revenues grew by 47% (Rs.235 Crores in Q against Rs.160 Crores in Q1 2012) Consolidated Pharma EBITDA grew by 100+% (Rs.61 Crores in Q against Rs.23 Crores in Q1 2012)

15 Agenda for the AGM Ordinary Business: 1. To adopt the financials for the year ended December 31, To declare dividend on equity shares 3. To elect Mr. Deepak Vaidyaas Director who retires by rotation 4. To elect Mr. M R Umarjias Director who retires by rotation 5. To appoint Deloitte Haskins & Sells, Bangalore as Statutory Auditors of the Company Special Business: 1. Approval for appointment of Mr. MohanaKumar Pillai as CEO Pharma pursuant to Section 314 of the Companies Act, Approval for appointment of Mr. S. Sridhar (Additional Director holding office till the current AGM) as Director of the Company

16 Thank you and look forward to your continued support