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Management Presentation
August 2010 / Confidential
Jefferies International Limited
Authorised and regulated by the Financial Services Authority
Plethico Pharmaceuticals Limited Management Presentation
September 2010
Important Disclaimer
This presentation and the accompanying slides (the “Presentation”) which have been prepared byPlethico Pharmaceuticals Limited (the “Company”) have been prepared solely for informationpurposes and do not constitute any offer, recommendation or invitation to purchase or subscribe forany securities, and shall not form the basis or be relied on in connection with any contract or bindingcommitment whatsoever.
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Certain matters discussed in this Presentation may contain statements regarding the Company’smarket opportunity and business prospects that are individually and collectively forward lookingstatements. Such forward-looking statements are not guarantees of future performance and are subjectto known and unknown risks, uncertainties and assumptions that are difficult to predict. TheCompany’s actual results, levels of activity, performance or achievements could differ materially andadversely from results expressed in or implied by this Presentation. The Company assumes noobligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third-parties included in this Presentation are not adoptedby the Company and the Company is not responsible for such third-party statements and projections.
1
Jefferies International Limited
Authorised and regulated by the Financial Services Authority
Overview of the Nutraceuticals Industry
Overview of Plethico’s Businesses
Key Strategic Initiatives
Introduction
Key Financials
3
Introduction to Plethico Pharmaceuticals
Manufacturer and distributor of nutraceutical, herbal and allopathic products
11th largest company globally within the sport nutrition products market in 2009 as per market research firm Euromonitor
Increasing presence in the dietary supplements market
Portfolio of over 200 branded products sold in more than 60 countries, including in the US, CIS, Europe, Africa, GCC, Asia and Latin America
Well established distribution channel which include distribution companies, retail chains, drug stores, grocery stores, fitness clubs etc
Group formed in 1963 and headquartered in Indore, India
Business Unit Nutraceuticals
Portfolio of products comprising of dietary supplements, sports nutrition products, vitamins, minerals and weight loss products
Others Herbals Allopathic
Business Overview
Product Comments
Travisil Range of herbal products including, drops, syrups and lozenges, in the cough and sore throat
category.
Travisil is primarily sold in India and Rest of World (CIS, Southeast Asia, Latin America and Africa),
and the company plans to launch the product in the US in 2011E and further increase sales in
developed markets in Europe.
Competitor products include Dr. Mom, sold by J.B. Chemicals.
Mountain Herbz Range of herbal medicines and supplements targeted at various life-style related disorders and to
promote general well-being and vitality. Products include treatments for high blood pressure,
digestive medicines, and aphrodisiacs.
The Mountain Herbz product range is sold in the African, CIS, Southeast Asian and Latin
American markets.
Competitor products include Himalaya.
Actifresh Range of Medicated lozenges
Actifresh is sold in the Indian, CIS, African, Latin American and Southeast Asian markets.
Competitor products include Halls.
Product Comments
Travisil Range of herbal products including, drops, syrups and lozenges, in the cough and sore throat
category.
Travisil is primarily sold in India and Rest of World (CIS, Southeast Asia, Latin America and Africa),
and the company plans to launch the product in the US in 2011E and further increase sales in
developed markets in Europe.
Competitor products include Dr. Mom, sold by J.B. Chemicals.
Mountain Herbz Range of herbal medicines and supplements targeted at various life-style related disorders and to
promote general well-being and vitality. Products include treatments for high blood pressure,
digestive medicines, and aphrodisiacs.
The Mountain Herbz product range is sold in the African, CIS, Southeast Asian and Latin
American markets.
Competitor products include Himalaya.
Actifresh Range of Medicated lozenges
Actifresh is sold in the Indian, CIS, African, Latin American and Southeast Asian markets.
Competitor products include Halls.
Product Comments
Effertabs Effervescent products to treat pain, fever, cold, indigestion and nutrition.
These products are primarily sold in Southeast Asia, Latin America, Middle East and CIS.
Competitor products include Alka Seltzer.
Therasil Products to treat cough and cold. Key markets include Southeast Asia, Latin America, Middle
East, CIS, Africa and India.
Competitor products include Strepsils.
Overview
Key Brands
Includes a range of clinically proven products developed from scientifically validated herbal extracts
Allopathic formulations include cough and cold, anti-infective, anti-retroviral, anti-tuberculosis, anti-malarial products, anti-spasmodic and gastrointestinal therapeutic products
Raw material trading and contract manufacturing
4
Evolution of Plethico Pharmaceuticals
1963
1971-80
1981-90
1991-00
2003-04
2006
2007
2008
2009
1970
Announced a tie-up with Molekule India Private Limited for distribution and marketing of Natrol’s brands in India
Completes acquisition of Natrol and integration of its business along with Indian operations
Further expands reach in CIS through acquisition of 20% stake in Tricon Holding
Raised US$75m through an FCCB issue
Acquires 100% in Natrol Inc in an all cash deal of USD 82 million
Entered the capital markets through an IPO raising Rs1.1bn
Boosted sales and marketing efforts in the CIS market through acquisition of stake in Rezlov, a marketing and distribution chain in the CIS
Increased international marketing of Travisil, an internally developed herbal Cough & Cold product that has increasingly contributed to our total sales in the CIS market
Kalaria plant commissioned
State -of-the art formulation plant established at Manglia to manufacture a wide range of allopathic formulations;
Establishment of a nationwide marketing & distribution network and introduction of branded formulations in various categories
Establishment of the company’s first formulation plant, at Indore
Group formed
Evolution from a Domestic Company to a Global Organisation
2010UK MHRA approval for Kalaria plant
5
Key Highlights of the Company
Established Presence in Key Markets
We believe we are pioneers of the sports nutraceuticals industry in India
Present in over 60 countries globally ( US, Europe, CIS, Latin America, S.E. Asia, Middle East , India and Africa)
Diversified Product Portfolio
500 plus formulations and a portfolio of over 200 brands
Presence in wide range of segments such as sports nutrition, food supplements , mouth fresheners, cough and cold medications, lifestyle diseases etc
Strong Manufacturing Base
3 manufacturing facilities in India which are CGMP compliant. Kalaria facility UK MHRA accredited . Indian facilities certified by World Health Organization
1 US CGMP complaint manufacturing facility in the US
Manufacturing facility in the UAE enjoying 50 year tax holiday expected to commence operations by the end of 2010
Large Distribution Network and High
Recall Brands
Access to CIS markets via stakes in pharmacy chain of Tricon and distribution company Rezlov
Channel Natrol brand into India markets through JV with Molekule
Portfolio of well recognized brands, such as Prolab, MRI, Travisil LaciLe Beau and Shen Min amongst others
Robust Financials
2007-2009 revenue CAGR (1) of 50.1%
Revenue growth of 29% in H1 2010 vs H1 2009, EBITDA and PAT growth of 92% and 112% respectively in H1 2010 vs H1 2009
Expanding EBITDA and PAT margins
Established Management
Senior management team of COO, CFO and President have been with the Company for over 15 years each
(1) CAGR: 2007 financials for 15 month period. 2009 financials include Natrol financials
6
Jefferies International Limited
Authorised and regulated by the Financial Services Authority
Overview of the Nutraceuticals Industry
Overview of Plethico’s Businesses
Key Strategic Initiatives
Introduction
Key Financials
7
Overview of Nutraceuticals
($Billions)
36%
22%
7%
6%
6%
5%
3%
3%
2% 1%
9%
US Japan Rest of Asia Rest of EU
France Germany Italy Swi tzerland
UK India Others
Global Nutraceuticals Market Trend Geographic Distribution of Nutraceuticals Sales
40.057.0
38.0
71.039.0
49.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
2007A 2013EFunctional Foods Dietary Supplements Functional Beverages
Liquids that quench thirst along with replenishing minerals, provide energy, prevent ailments, and promote healthy life styles
Key Product Segments
Sports and energy drinks
Fortified juices
Glucose powder
Foods that have specific physiological benefits and/or reduce the risk of chronic diseases
Key Product Segments
Nutrition fortified foods like fortified flour, fortified oil, fortified malted powder
Probiotic foods like yoghurt
Dietary supplements provide nutrients that are missing or are not consumed in sufficient quantity in a person’s diet
Key Product SegmentsVitamin supplementsMineral supplementsMacronutrientsAntioxidantsTonicsHerbal extracts like Chyawanprash, non-
herbal extracts like cod liver oil
(1) Nutraceuticals – Critical Supplement for building a healthy India, Enrst & Young and Federation of Indian Chambers of Commerce & Industry , 2007
Broadly Classified as Functional Foods , Dietary Supplements and Functional Beverages
Functional Foods Functional BeveragesDietary Supplements
Functional Foods
Dietary Supplements
Functional Beverages
6.1%
11.0%
3.9%
Segmental CAGR
8
Indian Nutraceuticals Market
42.4
630.6
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
2007A 2012E
115.5
357.5
0.050.0
100.0150.0200.0250.0300.0350.0400.0
2007A 2012E
722.5
1,605.5
0.0200.0400.0600.0800.0
1,000.01,200.01,400.01,600.01,800.0
2007A 2012E
($Millions) ($Millions)($Millions)
(1) Indian Dietary Supplement Markets – Frost and Sullivan, December 2007.
Indian Nutraceuticals Market Poised for Robust Growth
Overview
Indian functional foods market is segmented into omega fortified foods and probioticfoods
Vitamin and mineral enriched cereals, wheat flour and iodized salt, and a few cholesterol reducing foodstuffs are key constituents of the Indian Functional Foods Market
Functional Foods (1)
Functional Beverages (1)
Dietary Supplements (1)
Overview
Comprises of four main subsegments; Vitamins/mineral supplements, herbal supplements, dietetic supplements, and Chyawanprash supplements
Complex lifestyles, changing food habits, and consumer consciousness to stay healthy driving growth of the Indian Dietary Supplements Market
Overview
Comprises of herb-based fruit drinks, ready-to-drink teas, sports (isotonic) drinks, energy drinks, and single-serve fresh juices
Currently in its infancy, the demand for sports and energy drinks is expected to increase, as they are a socially accepted alternative to alcoholic drinks
9
Demand Drivers for Nutraceuticals
Affluence of working population with changing lifestyles
Reducing affordability of sick care, driving consumers towards wellness
Increasing physician awareness and media penetration
Increased accessibility due to emergence of newer channels
1
2
3
4
Regulatory framework not yet implemented
Inadequate resources for implementation of regulations
High prices of Nutraceuticals
Lack of credibility of Nutraceuticals
1
2
3
4
Critical Impediments to Convert this Latent Opportunity into a MarketGrowth in the Nutraceuticals Market in India is Driven by Several Factors
Growing consumer awareness towards self-medication and preventive healthcare coupled with rising costs
Aging population that needs diet supplements to stay healthy
Improving economic affluence and affordability
Increasingly competitive and busy lifestyles which takes a toll on dietary habits
Favourable Demand Drivers
Scientific and clinical research supporting effectiveness of nutraceuticals
Imperatives for a Successful Nutraceuticals Market
More health conscious consumers
Positive media publicity
Scientific studies and clinical trials supporting safety and efficacy claims
Propagation of information detailing the benefits of consuming dietary supplements
Favourable Structural Factors to Drive Demand for Nutraceuticals
Source : Nutraceuticals – Critical Supplement for building a healthy India, Enrst & Young and Federation of Indian Chambers of Commerce & Industry , 2009
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Canada
Known As “Natural Health Products”
Governed By Food and Drugs Authority
Implemented In 2004
Key Regulations Governing the Nutraceuticals Industry
Russia
Known As Biologically active food supplements
Governed By Ministry of Health & Social Development
Implemented In 1997
USA
Known As “Dietary supplements”
Governed By Food and Drugs Administration
Implemented In 1994
Australia
Known As Complementary medicines
Governed By Dept. Of Health and Ageing
Implemented In 1991
Japan
Known As “Foods for Specific Health Use”
Governed By Japan Health and Nutrition Food Association
Implemented In 1991
EU
Known As “Food supplements”
Governed By Food Safety Authority
Implemented In 2002
India
Regulation Food Safety and Standards act (FSSA)
Effective From Passed in 2006, yet to be implemented
Well Defined Set of Regulations Govern the Global Nutraceuticals Industry
We Believe a Well Defined Regulatory Will Aid in Greater Acceptability of Nutraceuticals Globally
Source : Nutraceuticals – Critical Supplement for building a healthy India, Enrst & Young and Federation of Indian Chambers of Commerce & Industry , 2009
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Jefferies International Limited
Authorised and regulated by the Financial Services Authority
Overview of the Nutraceuticals Industry
Overview of Plethico’s Businesses
Key Strategic Initiatives
Introduction
Key Financials
12
Overview of Plethico’s Business’s
Nutraceuticals
Herbals (Finished
Formulations)
Allopathic
Dietary Supplements
Functional Foods
Herbals (Finished
Formulations)
Finished Formulations
API Trading
Vitamins, Minerals
Green Tea, Garlic, Soy Protein
Non Herbals
Sports Nutrition
Meal Supplement
Joint Care
Weight Loss
Probiotics
Omega 3 – Fatty Acids
CoQ 10
Chondroitin / Glucosamine
Cough & Cold
Mouth Fresheners / Throat Irritation
Confectionary
Branded Generics
Contract Manufacturing
Broad Range of Products Aimed at Various Customer Segments
48.1%(1)
37.4%(1)
7.2%(1)
(1) Contribution to total sales in 2009
6.8%(1)
13
14.0%(1)
Overview of Nutraceuticals Business
Overview Geographic Distribution Revenue Split
Predominantly encompasses dietary supplements , sports nutrition products and weight loss products
Also offers herbal tea and beauty products
Nutraceutical products accounted for 48.1% of consolidated revenues in FY 2009
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2008A 2009A
RoW
India
US86%
11%
63%
34%
3%3%
104.3
128.9
41%
28%
9%
8%
14%
2008A
2008A
Natrol MRI Prolab Coaches Formula Others
44%
21%
13%
7%
15%
2009A
24%
Key Brands
Overview Revenue(2009) US$ mn
Trend (1)
Natrol Largest brand of dietary supplements of the group
Focuses on vitamins, minerals, herbal products and specialty combination formulations
56.5
MRI Sports nutrition branded products targeted at premium consumers
Products include HSP, a protein supplement for enhanced training, Pro NOS (Whey Protein), Black Powder ( pre workout energy boosting formula)
26.9
Prolab Sports nutrition line of products targeted at mid-market consumers
Sold primarily in the United States through sports nutrition retail stores, fitness centres, websites and health-food stores
16.8
Coach’s Formula
Range of sports nutrition products focusing on the mass market segment of sports supplements
Products primarily sold in India, the CIS, Latin America, Southeast Asia, the Middle East and the African markets
9.7
Laci Le Beau
Flavoured herbal teas under the Laci Le Beau brand which is one of the leading diet tea brands in the United States
NuHair and Shen Min, hair products containing a serum and vitamins targeted at combating hair loss
19.0
30%
86%
22%
31%
9%
Portfolio of Strong Award Winning Brands Across Consumer Segments
($Millions)
(1) Trend of 2008 vs 2009
(2) USD/INR Exchange Rate of Rs 46.41
14
Overview of Herbals Business
Overview Geographic Distribution Revenue Split
Offer a safe and natural alternative in treating health problems such as diabetes, cholesterol, sleep disorders, digestive disorders and pain management
Herbal products accounted for 37.4% of consolidated revenues in FY 2009
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2008A 2009A
RoW
India
24%
76%
18%
82%
71.5
100.2
33%
18%12%
20%
6% 11%
2008A
28%
15%
12%
17%
8%
20%
2009A
28%
15%12%
17%
8%
20%2009A
Travisil Actifresh Confectionery Mountain Herbz Thravapasit Others
40%
Key Brands Overview Revenue(2009) US$ mn
Trend (1)
Travisil Range of herbal products including, drops, syrups, and lozenges, in the cough and sore throat category
Enjoys strong brand equity in the CIS markets
28.0
Mountain Herbz
Range of herbal medicines and supplements targeted various lifestyle related disorders and general well being and vitality
Products include treatment for high blood pressure, digestive medicines and aphrodisiacs
17.0
Actifresh Range of medicated lozenges are sold under the Actifresh brand
Actifresh primarily sold in the CIS, African and Indian markets
14.9
Travopassit Travopassit range is an anti-stress product made from well evaluated and researched herbal ingredients
Sold primarily in the CIS markets
8.0
Confectionery and others
Includes products primarily catering to younger generation impulse purchase markets
Sold primarily in India and CIS
32.3
20%
13%
100%
18%
76%
Strong Brand Equity in Existing Markets … Well Poised to Expand Geographic Reach
($Millions)
(1) Trend of 2008 vs 2009
(2) USD/INR Exchange Rate of Rs 46.41
15
Overview of Allopathic Business
Overview
Allopathic formulations include pain, cough and cold, anti-infective, anti-retroviral, anti-tuberculosis, anti-malarial products, anti-spasmodic and gastrointestinal therapeutic products
In fiscal year 2009, allopathic products accounted for 14.0% of consolidated revenues
Key Brands Overview Revenue(2009) US$ mn
Trend (1)
Effertabs Effervescent products to treat pain, fever, cold, indigestion and nutrition categories
Products sold primarily in the areas of South East Asia, Latin America, the Middle East and the CIS
5.8
Therasil Non-effervescent allopathic products for the cough and cold categories are sold under this brand
These products are mainly sold in the markets of South East Asia, Latin America, the Middle East, the CIS, Africa and India
10.1
Others Predominantly raw material trading in the rest of world segment, and contract manufacturing in India
Non-effervescent range of products in the pain relief category are sold under the brand Relievo
Tablets and ointments catering to pain, inflammation and muscle sprains
21.5
17%
12%
Range of Products Across Therapeutic Segments
(1) Trend of 2008 vs 2009
(2) USD/INR Exchange Rate of Rs 46.41
16
Geographic Distribution Revenue Split
0.0
10.0
20.0
30.0
40.0
2008A 2009A
RoW
India
1%
99%
4%
96%
22.8
37.5
22%
39%
39%
2008A
16%
27%57%
2009A
30%
52%
18%
2009A
Therasil Effertabs Others
64%
($Millions)
3
144%
Diversified Product Portfolio with Extensive Geographic Reach
Products US India CIS Africa 3rd Front¹
Nutraceuticals
Natrol
MRI
Prolab
Lacie Le Beau
Coaches Formula
Herbal
Travisil
Actifresh
Mountain Herbz
Travopassit
Allopathic
Effertabs
Therasil
Relievo
Products Sold in Over 60 Countries
(1) 3rd Front : Latin America + Middle East+ Europe + South East Asia.
17
Strong Distribution Platform
Natrol Inc., USA
Natrol
Drug Store Club / MM Health Food Stores Gyms eCommerce
MRI
—
3rd Party Distributors Retail Pharmacy Internal Distributors & Sales Force
CIS
Africa
SE Asia
Latin America
Middle East
India
Plethico
Products sold at various major retailers and pharmacy chains including Walgreen, Walmart, CVS, COSTCO, GNC and Rite-Aid
More than 200 sales personnel in India and more than 50 marketing and sales personnel in the United States
Marketing and sales team consists of more than 400 employees globally
Equity interests in Rezlov Group and Tricon Holdings strengthens distribution capabilities in the CIS, tie up with Molekule for India
Extensive Distribution Network Consisting of Retail Pharmacy Chains and Speciality Health Food Stores
18
Overview of Manufacturing Facilities
India
Location Manglia, Indore
Operating Area (‘000 m²) 10.01
Main Products All Allopathic other than Effertabs, Therasil and Relievo
Approvals WHO-GMP Certified
India
Location Kalaria, Indore
Operating Area (‘000 m²) 15.46
Main Products Various, including allopathic and herbal
Approvals WHO, UK -MHRA for allopathic
India
Location Kandla, Gujarat
Operating Area (‘000 m²) 0.46
Main Products Herbal formulations for export
Approvals WHO, SEZ status. Also approvals for Africa, CIS and South East Asia (fiscal tax benefits until March 31, 2011)
USA
Location Natrol, Chatsworth, CA
Operating Area (000 sq ft ) 94.0
Main Products Natrol branded products
Approvals FDA compliant
UAE
Location Dubai
Operating Area (‘000 m²) 15.0
Main Products Travisil, Therasil, Effertabs
Approvals Tax benefits
USA
Europe
CIS
Africa
UAE India
South East Asia
Manufacturing Facilities
Destination Market
Strategically Located Manufacturing Facilities
19
Distributors
Jefferies International Limited
Authorised and regulated by the Financial Services Authority
Overview of the Nutraceuticals Industry
Overview of Plethico’s Businesses
Key Strategic Initiatives
Introduction
Key Financials
20
Core Business Strategy
Nutraceuticals Nutraceuticals Nutraceuticals
Sports Nutrition
Vitamins & Dietary Supplements
Natrol
MRI
Prolab
Continue to gain market share
Building out product range in all target markets
Herbals Herbals Herbals
Cough and Sore Throat
Lifestyle Related Disorders
Medicated Lozenges
Travisil
Mountain Herbz
Actifresh
Consolidate position in the CIS market
Build out product range in the US
Allopathic Allopathic Allopathic
Cough and Cold
Anti –infective, Anti –inflammatory
Tuberculosis
Therasil
Effertabs
Build out Effertabs in Europe
Roll out Therasil in all target markets
Introduce OTC products in India
Develop a network of strong brands and agile businesses in Nutraceutical,herbal and Allopathic segments in identified geographies
Focus on brands with high relative market share and strong consumerfranchise
Continue to focus on marketing efforts in India for herbal and allopathic products significantly increase brand awareness campaigns for nutraceutical products
Cross sell products and optimise product portfolio
Integrate multi-location production facilities to capture cost efficiencies and optimize distribution processes
Category Focus Brand Focus Leadership Focus
Future Objective
Established Presence
Focus on Key Brands and Leverage on Cross Selling Opportunities
21
Successfully Leverage Acquisitions and Alliances
Overview Rationale / Impact
NatrolAcquired Natrol a Nasdaq listed
US nutraceuticals Company in Oct 2007 for US$ 82 mm
Entry into the US Nutraceuticals market, largest market globally
Access to a portfolio of strong award winning brands in over 70 product categories
Geographical expansion into the regulated markets of US, UK, Europe
Introduction of Natrol products into existing geographies of Plethico
Rezlov
Acquired majority stake in six marketing and distribution companies in the CIS between 2004-2006 for US$ 31 mm
Sold of a portion of its shareholdings in the Rezlov group of companies to Azyder Global Establishment in March 2007
Strong distribution network in Russia, Kazakhstan, Ukraine, Moldova, Kyrgystan and Azerbaijan - markets with strong entry barriers
Efficient receivables management and through product registration and filings in the CIS
Rezlov Group expected to benefit from Azyder's European expertise
Tricon Holdings FZE
Acquired 20% stake in Tricon Holdings UAE based pharmacy chain
Leverage Tricon’s 400 strong retail pharmacy outlets in CIS
MolekuleExclusive distribution agreement
with Molekule India Private Ltd. ("Molekule")
Exclusive distribution contract to market Natrol Inc’s products in India for a period of three years
Expand into New Markets via the Inorganic Route
22
Strategic Roadmap
11th largest sports nutrition company globally
77th largest dietary supplements company globally
Well established presence in the CIS markets for Herbals and Allopathic segments
Well established presence in the Nutraceuticals segment in the US markets
Become one of the leading sports nutrition and dietary supplements company globally
Obtain leadership positions in identified geographies
Established presence of Nutraceutical products in existing markets of Plethico
Established presence of Herbal and Allopathy products in regulated markets
Become a well integrated, leading global nutraceutical company
2015
2010
Expand distribution capabilities in the CIS, Europe and South East Asia
Leverage strong distribution network to introduce herbal products in the US
Streamline product portfolio, integrate production facilities and decrease outsourced production
Strengthen balance sheet and improve credit cycle terms
Leading Global Nutraceutical Company
23
Management Profile
Shashikant Patel Chairman & Managing Director
Pharmaceutical industry experience of over 40 years
Played a lead role in formulating the Company's strategy and has been actively involved in marketing and sales and overall management of the Company since its inception
Chirag PatelWhole Time Director and Chief Executive Officer
Over 15 years of experience working in the global pharmaceutical industry
Responsible for the Company's brand building and its entry into the consumer healthcare business
He is also responsible for the Company's foray into international operations, including CIS and Africa
Gauravi ParikhExecutive Director
Joined the Company in 2000
Responsible for the technical and regulatory affairs, new product development and the human resource management
Rajiv BediPresident Plethico Pharmaceuticals
Holds over 23 years of experience, including 14 years in the Company
Promoted to head the Company’s operations in the year 2006 as President
Hemant ModiChief Operating Officer
25 years of experience including 19 years in the company
Specializes in debt fund raising also oversees accounting function
Sanjay PaiChief Financial Officer
15 years of experience, joined Plethico in November 1998
Responsible for funding, strategy, investor relations, management reporting, costing and budgeting
Pat McCulloughPresident - Natrol
Over 20 years of experience in the industry
Responsible for sales growth as well as profitability of the US business
Established Team with Deep Industry Expertise has Been the Force Behind Plethico
24
Dr. Manmohan A Patel Chairman and CEO, Natrol Inc
Over 35 years of experience in practicing geriatric, pulmonology, internal and emergency medicine
Previous roles include Founder and President of Pavonia Medical Associates, PA and Chairman of Jersey Integrated Health Practice
Instrumental in setting up preventative care and diagnostic testing centers in the state of New Jersey
Jefferies International Limited
Authorised and regulated by the Financial Services Authority
Overview of the Nutraceuticals Industry
Overview of Plethico’s Businesses
Key Strategic Initiatives
Introduction
Key Financials
25
Consolidated Financials
Sales EBITDA PAT
119
208
268
116149
0
50
100
150
200
250
300
2007A¹ 2008A 2009A H1 2009 H1 2010
Revenue By Geography
43%
10%10%
14%
23%
2008A
30%
9%
8%15%
38%
2009A
34 46 52
18 34
-
25
50
75
100
2007A¹ 2008A 2009A H1 2009H1 2010
(1) 15 month ended.; % of Revenue and % of Geography charts indicate %of total income(2) USD/INR exchange rate of 46.41
34 27
47
15 29
-
30
60
90
2007A¹ 2008A 2009A H1 2009 H1 2010
75%
29%
29% 89%35%
13%
76% 93%
43%
10%10%
14%
23%
2008A
US India Africa CIS Third Front
21%
($Millions)($Millions)($Millions)
26
Revenue By Segment
50%
35%
11%
4% 2008A
48%
38%
7%7%
2009A
48%
38%7%
7% 2009A
Nutraceuticals Herbals Allopathic Contract Manufacturing/RM Trading
Quarterly Financials
Sales EBITDA PAT
52
72
63
76
0
10
20
30
40
50
60
70
80
Q1 2009 Q1 2010 Q2 2009 Q2 2010
($Millions)
9
16
8
19
18%
22%
13%
25%
0%
5%
10%
15%
20%
25%
30%
0
5
10
15
20
25
30
35
40
Q1 2009 Q1 2010 Q2 2009 Q2 2010
EBITDA EBITDA Margin
($Millions)
7
13
7
16
13%
18%
11%
21%
0%
5%
10%
15%
20%
25%
0
5
10
15
20
25
30
35
40
Q1 2009 Q1 2010 Q2 2009 Q2 2010
PAT PAT Margin
($Millions)
38%
20%
(1) USD/INR exchange rate of 46.41
27
Consolidated Balance Sheet
(1) USD/INR exchange rate of 46.41
As of As of As of As of
31-Dec-07 31-Dec-08 31-Dec-09 30-Jun-10
(In US$Million) (In US$Million) (In US$Million) (In US$Million)
SOURCES OF FUNDS
SHAREHOLDERS' FUNDS
Share Capital7.3 7.3 7.3 7.3
Reserves & Surplus120.4 151.3 184.4 209.7
127.8 158.6 191.7 217.0
Deferred Tax Liability (Net) 2.6 (5.2) (6.4) (5.6)
LOAN FUNDS
Secured Loans 16.5 60.1 42.7 49.7
Unsecured Loans 66.0 86.7 89.2 92.4
82.4 146.9 132.0 142.1
Total Sources 212.8 300.3 317.3 353.5
APPLICATION OF FUNDS
Fixed Assets 24.4 132.8 132.4 132.3
Investments 88.1 42.9 42.9 42.9
Net Current Assets 98.7 123.4 141.0 177.3
Miscellaneous Expenditure (To the extent
not written off or adjusted) 1.6 1.2 1.0 1.1
Total Uses 212.8 300.3 317.3 353.5
(US$ millions)
28
Corporate Structure Tax Efficient Corporate Structure
Plethico Pharmaceuticals
Other InvestmentsPlethico Global Holdings
B.V. NetherlandsPlethico International
Limited, UAE
Rezlov45%
Tricon20%
Plethico US Holdings Kft,
Hungary
Natrol Global FzLLC, UAE
Natrol Inc., USA
100%
100%
25%
75%
29