Vivimed Investor Presentation July 2013

7/27/2019 Vivimed Investor Presentation July 2013

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Vivimed Labs Limited

Investor PresentationJuly 2013


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Disclaimer

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy,

completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in allevents not current after the date of this presentation. Certain statements made in this presentation may not be based on historicalinformation or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of themanagement of Vivimed Labs Limited (Company orVivimed), which are expressed in good faith and in their opinion reasonable,including those relating to the Companys general business plans and strategy, its future financial condition and growth prospectsand future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results,financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial

condition, performance or achievements expressed or implied by such forward-looking statements, including future changes ordevelopments in the Companys business, its competitive environment and political, economic, legal and social conditions. Further,past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of thispresentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims anyobligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations orinformational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe forany securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection

with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities maybe offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to anexemption from registration there from.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.


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Agenda

1. Group Overview 4

2. Global Operations 10

3. Business Segments 15

4. International R&D 27

5. Corporate Structure 29

6. Financial Overview 33

7. Key Takeaways 40


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Agenda

1. Group Overview

2. Global Operations

3. Business Segments

4. International R&D

5. Corporate Structure

6. Financial Overview

7. Key Takeaways


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Our Customers & ProductsGroup Overview

Healthcare67% of FY13 sales

Personal Care20% of FY13 sales

Home Care9% of FY13 sales

Industrials4% of FY13 sales

ActivePharmaceuticalIngredients (API)

Finished DosageFormulations(FDF)

Antimicrobials

SpecialtyIntermediates

Preservatives

Photo ChromicDyes

Imaging Chemicals

Sun Care

Skin Care

Hair Care

Oral Care

Naturals

FY2013 sales of Rs. 11,207 million; EBITDA of Rs. 1,976 million
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Where Chemistry and Quality MattersGroup Overview

Robust Financial Performance

Best-in-Class OperationsUnique Business Model

Attractive Industry Dynamics

11 manufacturing facilities and 5 R&Dcenters across the world

3 USFDA approved sites

Healthcare revenues: Regulated markets85% and Semi Regulated markets 15%

High entry barriers: Long standing customerrelationships and in house knowledge base

Flexible manufacturing across API andActive Ingredients

Uses chemistry to create ingredients whichtouch human life on a daily basis

Focused on the Health Care, Personal Care,Home Care and Industrial segments globally

Multiple manufacturing and R&D centersprovides efficient platforms in India acrossbusiness segments

Product portfolio caters to over 75% of thepersonal care ingredient market

Combination of stable margin and high growthglobal businesses

Global API sales is expected to grow at aCAGR of 5.9% from 2010 to 2015

Drugs with global market size of $224bn togo off-patent by 2015 driving generic sales

Indian pharmaceutical industry to reach$20bn in 2015, a CAGR of 12.3%

Global personal care ingredient market togrow to $15bn by 2015 and India to $800mn

5-year Net Sales CAGR of 42% and NetProfit CAGR of 44%

Revenues: India 35%, RoW 65%

R&D investments: 3%of Revenues

Short-term bank facilities rated A2+ and longterm facilities rated A- by CARE Ratings

Strong transnational management team withproven track record of delivering growth &profitability


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Evolution with Chemistry Always at the CoreGroup Overview

API and Bulk

Drug

Manufacturing

1991:Commencedproduction atBidar, Karnataka.

Manufacturing ofAPIs and BulkDrugs such asIbuprofen,Chlorzoxazone,Nalidixic Acid

Exploration into

Specialty

Chemicals

1997: VIV-20Patent grant byIndian PatentsOffice

Foray intospecialtychemicalsthroughdevelopmentand processinnovation ofAnti-Bacterial Viv-20 (Triclosan)

Breakthrough in

Specialty

Chemicals

2000:Established R&Dcenter

Approved byUnileverfor the supply ofViv-20 andVivcal-G toUnilevers Asianlocations

Expansion of

Product

Portfolio &

Clientele

2005: Listed onBSE & NSE

Development of

new activeingredients

Introduction ofSmall VolumeParentals facilityand SpecialtyChemicals facility

Added newcustomers suchas LOreal, P&G

Inorganic

Growth

Healthcare:Acquired Uquifa,Octtantis Nobel ,Klar Sehen and

Finoso toincreasepresence in APIs& formulations

Active

Ingredients:

Acquired JamesRobinson toincrease globalpresence andincrease productportfolio

Integration and

Financial

Scaling

Drive revenueand profitabilitygrowth through:

Integration ofacquisitions

Process andprocurementefficiencies inSpain

Capacityexpansions andenhancing

product range

Track record of growth through identification of niche segments, building scale and integrating acquisitions

1989-94 1995-98 1999-2003 2004-07 2008-12 2013-15

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Synergistic Global OperationsGroup Overview

A multinational global platform that provides Vivimed access to markets and significant cost advantage

Facilities Mexico Spain UK China USA India Total

Healthcare API 1 2 3

Healthcare FDF 6 6

Active Ingredients 2 2

Total Facilities 1 2 8 11

R&D Facilities 1 1 3 5

Global Support Offices 1 1 1 1 1 5

Sant Celoni, SpainLli de Vall, Spain

Cuernavaca, Mexico

Kashipur, UttarakhandHaridwar, Uttarakhand

Kolkata

Bolarum, HyderabadBidar,

Karnataka

Bonthapally, Hyderabad

Jeedimetla, Hyderabad

(2 facilities)

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WhereCh

emistryandQualityMatters

Clearly Defined Strategic DirectionGroup Overview

Continue to strengthen engagements with marquee customer basethrough superior product development and delivery capabilities

Move up the value chain through vertical integration in Healthcare(R&D to manufacturing of API / FDF / brands) and target nicheopportunities in the Specialty Chemicals segment

Optimize utilization of existing global manufacturing platform to enhance

capital efficiencies and shareholder returns

Increase penetration in existing regulated and semi regulated Healthcaremarkets and target selected new geographies

Focus on early stage innovative R&D and product development todrivemonetization of business opportunity across all segments

Leverage the strengthened management team to support the futuregrowth aspirations and deliver sustainable returns over the longer term

Successful integration of recent initiatives which will bring scalabilitythrough a larger opportunity space and a platform to address the same

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Agenda

1. Group Overview






7. Key Takeaways


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Location Facilities Description

Llica

Barcelona, Spain

29 reactors (10 glass-line, 17 stainless steel)

Total capacity of 140 m3

Extensive material handling capabilities allows efficient production of bulkAPI

Last FDA Inspection date: July 2012

ISO 14001:2004 certified

Inspections and approvals by Spain and Japanese health authorities

Sant Celoni

Barcelona, Spain

Acquired from Barisintex in 1991



Last FDA Inspection date: July 2012

ISO 14001:2004 certified

Inspections and approvals by health authorities from Spain, ANVISA

(Brazil), Japan and Korea

Cuernavaca

Mexico

Acquired from SmithKline in 1997

Low cost high capability



Last FDA Inspection date: 2011

Inspections and approvals by health authorities from Denmark, Japan andKorea

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3 GMP compliant and US FDA approved sites across Spain and Mexico

Healthcare APIGlobal Operations


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Jeedimetla

Hyderabad

Manufactures dosage forms across delivery platforms such as liquidorals, tablets, capsules and ointments in various therapeutic categories

Jeedimetla

Hyderabad

Manufactures dosage forms across delivery platforms such as tablets,capsules, nasal sprays and ointments

One line of 500 ltrs (glass bottles); Two lines of 300 ltrs (flat bottles)

ISO 13485 certified

CE certificate for medical devices

Bolarum

Hyderabad

Two liquid manufacturing lines each of 3000 ltrs per day

One tablet manufacturing line of 250 kgs per day

Haridwar

Uttarakhand

Manufactures wide range of sterile products and small volume parentals

Has complex equipments designed as per stringent US FDA norms

ISO 9001-2000, ISO 14001 and OHSAS 18001 certifications

6 WHO and GMP certified facilities in India

Healthcare FDFGlobal Operations


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Kashipur

Uttarakhand

Located in the area which enjoys various tax concessions

Engaged in manufacturing non-sterile syrups, tablets, capsules & drypowders

ISO 9001-2000, ISO 14001 and OHSAS 18001 certifications

Kolkata

West Bengal

Manufactures dosage forms across delivery platforms such as tablets,

capsules, nasal sprays and ointments Ointment line : 150 kgs per day

Liquid Oral: 750 ltrs per day

Eye drop / Sterile drops : 100 ltrs per day

6 WHO and GMP certified facilities in India

Healthcare FDFGlobal Operations


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Bonthapally

Hyderabad, AP Equipped with 78 reactors with over 350kl capacity

Bidar

Karnataka Equipped with 60 reactors with over 300kl capacity

2 plants in India designed in compliance with US FDA norms

Personal, Home Care & IndustrialsGlobal Operations

Integrated Management System (IMS) certification for manufacturing and supply of Specialty Chemicals and ActivePharmaceutical ingredients and Social Accountability (SA 8000: 2008) certification

ISO 9001:2008 QMS certification for its manufacturing facilities

ISO 14001:2004 certification for Environmental Management System

ISO 18001: 2007 Certification for Safety Management System

Certification for Bio-Terrorism preparedness from the US FDA (a prerequisite for exports to certain countries)

Pre-registered its products for REACH (Registration, Evaluation and Authorization of Chemicals) in Europe

R&D certified as a GLP Laboratory by CISR, a government of India undertaking

Quality Certifications


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Agenda

1. Group Overview






7. Key Takeaways


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By Product (Rs. 7,384 million)

By Geography (Rs. 7,384 million)

75.5%

20.6%

3.9%

API Contract FDF Branded FDF

Presence across APIs, contract and branded FDF

Healthcare67% of FY13 sales

ActivePharmaceuticalIngredients (API)

Finished DosageFormulations(FDF)

Active PharmaceuticalIngredients (API)

Finished DosageFormulations (FDF)

BrandedFDF

ContractFDF

Capsules &Tablets

Syrups &Liquids

NasalSpray &

Ointments

Business

Segments

Ophthalmic

Nutraceu-ticals

Dermato-logy

Healthcare: OverviewBusiness Segments

14.0%

29.6%

41.0%

4.2%

11.3%

NAFTA ASPAC Europe LATAM Row


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* Outsourced

Healthcare: Value ChainBusiness Segments

Presence across the value chain builds cost competitiveness and is a source of strategic advantage

Bio-Studies*

Supply pipeline

Quality manufacturingplatform

Strong customer relationships

Access to regulated markets

DifferentiatedR&D platform forgenericformulationdevelopment

Formulation /Analytical

Development& Regulatory

Support

API Supply

Step towardsgeneric drug filing

ExhibitBatch Mfg &

Stability

Regulatory step required to sell finished formulations

The last step in the whole drug (ANDA) filingprocess

Once the FDA approves the submitted dossier,companies can start commercialization

DossierFiling,

Review &Final

Approval

Quality manufacturing platforms acrossforms of delivery such as tablets,capsules, nasal sprays and ointments

Targeted towards regulated & semi-regulated markets

ManufacturingCapability


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Active Pharmaceutical Ingredients: Broad based portfolio across therapeutic segments

Healthcare: APIBusiness Segments

Bulk Generics Therapeutic Area

Ciprofloxacine Base Antibiotic

Terbinafine Antifungal

Acyclovir Antiviral

Ketorolac Analgesic

Omeprazole Anti Ulcerative

Ranitidine Anti Ulcerative

Ethicals Therapeutic Area

Epsiprantel Antiparasitic agent (Veterinary)

Morantel tartrate (Ka) Anthelmintic

Albendazole Anthelmintic

HidroxizineAntihistamine, antipsychotic,anxiolytic

Mivacrurium Skeletal muscle relaxants

New Generics Therapeutic Area

Lacidipine Calcium channel blocker

Venlaflaxine Anti- depressant

Lamotrigine Anti- Convulsant

Lansoprazole Anti Ulcerative

Memantine Treatment of Alzheimers

Pantoprazole Anti Ulcerative

Residronato Na Treatment of Osteoporosis

Niche Generics Therapeutic Area

Tropicamide Mydiatric

Ciclopentolate Mydiatric

Doxilamina Succinate Antihistaminic, sedative, hypnotic

Etofenamate Analygesic

Nimodipine Vasodilator

Nitrendipine Anti Hypertensvie

Petidine Analgesic / narcotic


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Branded Finished Dosage Formulations

Ophthalmic Nutraceuticals and Dermatology

High growth and niche ophthalmic segmentand owns over 50 trademark products

Well known brands are Renicol, Lysicon-V,Care Tears and Dexacort

Strong marketing presence in North East,Bihar and Andhra Pradesh

In the process of expanding into regionssuch as Madhya Pradesh, Uttarakhand, UttarPradesh, Tamil Nadu, Kerala and Karnataka

Over 150 medical sales professionalsdedicated for this division

Nutraceuticals especially for women andchildren include enzyme preparations, B-lactams, anti-oxidants and multi-vitamins

Promoting the Dermatology segment togeneral physicians and has plans to expand

with additional products apart fromSCABENCA

Has presence in North East, AndhraPradesh, Bihar and Jharkhand.

In the process of expanding into regionssuch as Madhya Pradesh, Uttarakhand, UttarPradesh, Tamil Nadu, Kerala and Karnataka

Strong field marketing force of over 125medical sales representatives

Renicol Dexacort Care Tears Nutriva Folichew

Healthcare: Branded FDFBusiness Segments


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Contract Finished Dosage Formulations

Capsules & Tablets

Flexasur

Spasmocip Plus

Codarin

Butaproxivon

Valenzia Tablets

Arachitol Tablet

C Pink Tablet

Syrups & Liquids

Codarex

Inalgel

Viscodyne

Brozedex (sugar free)

Celadrin

Mits Codeine Linctus

Candid Lotion

Candid Mouth Paint

Nasal Spray & Ointments

Otrivin

Nasivion Moist (spray)

Nasivion (nasal drops)

Candbiotic Ear Drop

Otrivin Nasal Spray

Tobrop

Clients

Capacity: Tablets >2bn, capsule ~1bn, 145 kl across delivery platforms

Healthcare: Contract FDFBusiness Segments
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Backward integration of key pharmaintermediates

Expand research and regulatorycapabilities into India

Process improvements in manufacturingfacilities in Spain and Mexico byleveraging India based R&D

Expand manufacturing covering threecontinents (Asia, Europe, LATAM)

Broader portfolio with focus on premiumproducts

Focus on CMO business with innovatorcompanies

Healthcare API

Enhance margins through process improvements and portfolio optimization

Geographical expansion India; increasestrength from existing 400 MRs to 1000MRs in two years

Expand in Eastern Europe and establishpresence in Africa, Asia and Latin

America

Increase market authorizations andANDAs from 4 to 30 in two years

Branded FDF development to be initiatedwith focus on products where in-house

API is available and new geographies

Addition of contract research lab tosupport own filing MAs and ANDAs;Target 15 per year

Joint co-operation strategies with majorPharmaceutical companies to yieldrevenues from FY2014

Healthcare Finished Dosage Formulation

Healthcare: OutlookBusiness Segments


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Personal Care20% of FY13 sales

Sun Care

Skin Care

Hair Care

Oral Care

Naturals

47.1%

1.8%

50.2%

0.9%

Skin care Oral care Hair care Others

Growth driven by attractive end user markets

Sun Care

Attractive End UserMarkets

Skin Care

Sunscreen, makeup,lotion, lipstick

Anti-wrinkle & skinwhiteners, moisturizer

Hair Care

Shampoo, conditioner,

scalp treatment, hair dyes

Oral Care

Toothpaste, mouth wash


By Geography*

Naturals

Soap, shampoos

Personal Care: OverviewBusiness Segments

* Includes Personal, Home Care and Industrials

17.5%

54.3%

21.8%

4.8% 1.5%

NAFTA ASPAC Europe LATAM MEA
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Category Key Products Description End Uses Key Clients

Sun Care

Avis

Ben - 3 & 4

Etone

Broad spectrum UV-A filter

Oil/water soluble UV-A/B filter

UV-A & UV-B filter

Sunscreen,makeup, lotion,lipstick

Unilever,P&G, LOreal,

BDF

Skin Care

Vintox

Vivinol

Anti-oxidant & Anti-ageing molecule

Skin Lightening molecule

Anti-wrinkle & skinwhitening cream,

moisturizer

BASF,Sederma,

Unilever

Hair Care

Dantuff Z

Vipirox

Jarocol Dyes

Broad spectrum anti-dandruff agent

Anti-dandruff agent

Hair Dye intermediates

Shampoo,conditioner, scalptreatment, hairdyes

Unilever, ITC,Dabur,LOreal, Wella

Oral Care

Viv 20

Vivcal-G

Anti-Bacterial for toothpaste

Dental Enamel Protection

Toothpaste, mouthwash

Unilever,P&G, Dabur,

BDF

Naturals

CurcumaAromatica Rootoil

Soapnut

Skin conditioner & brightner

Natural detergent

Shampoos, face wash, hand wash

Soap, shampoos Unilever,Kalina

Products that touch lives of people around the world on a daily basis

Personal Care: ProductsBusiness Segments


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Home Care9% of FY13 sales

Industrials4% of FY13 sales

Antimicrobials

SpecialtyIntermediates

Preservatives

Photo ChromicDyes

Imaging Chemicals

38.7%

55.3%

6.0%

Antimicrobials Speciality intermediates Others

62.8%

21.2%

16.0%

Photo chromic dyes Imaging chemicals

Other chemicals

Focus on niche, high value active ingredients


By Product (Rs. 429 million)

Home Care & Industrials: OverviewBusiness Segments
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Category Key Products Description End Uses Key Clients

Anti-

Microbials &

Preservatives

Vivilide

Cosvat

Broad spectrum bacteriostatic

Anti-fungal and anti-bacterial

Soap, hand wash,textile, paint, handgel, cosmetics

Unilever,BASF, J&J

Photochromic

Dyes

Reversacol Patented high performance dyes Lenses, toys, films,clothes, cosmetics

like nail varnish

Keystone,Corning,

Mildex Optical

Imaging

Chemicals

Phenidone

Dimezone

Nitroindazole

Black and white developing agent

Black and white developing agent

Anti-fogging agent

X-rays,photography

Kodak, Fuji,LG

Products adding value, beauty, protection and well-being

Home Care & Industrials: ProductsBusiness Segments


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Focus on market or customer drivenneeds through proprietary, differentiatedproducts rather than commoditizedmanufacturing

Antimicrobial and hygiene care

formulations for H&PC Industry

Business opportunities from newsegments such as fragrances andnaturals

Leveraging biotech facilities created forapplication of Personal Care andCosmetics Industry

Innovating chemicals for plasticelectronic applications (advancetechnology)

Robust pipeline of new moleculesexpected to be launched in the next threeyears which will be marketed to existingand new customers

Deepen the existing customer engagements and focus on newer product areas

Personal, Home Care & Industrials: OutlookBusiness Segments

Opportunities Outlook

Increase business in North America andLatin America

Continue to grow in Asia and Middle East

Increase regional brands in high growth

markets Explore new business opportunity with

specialty silicones (via ReSil alliance)

Business opportunities from newsegments such as fragrances andnaturals

New opportunities in automotive andprintable electronic segments


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Agenda

1. Group Overview






7. Key Takeaways


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R&D activities range from the molecule identification, IP creation to commercialization across all businesssegments

Location Description

Healthcare:

API

Sant Celoni

Barcelona

Spain

35 scientists including 3PhDs

Excellent track record in filing of dossiers and commercial scale-up

Mallapur

Hyderabad

Team of 25 people with 22 scientists including 3 PhDs

GLP compliant labs recognised by Council for Scientific and IndustrialResearch (Govt. of India)

Healthcare:

Formulations

Alexandria Techno Park

Hyderabad

Team of 20 scientists including 1 PhD

Services include formulation development, regulatory, analyticaldevelopment and quality systems

Home&PersonalCare&

Industrials:

ActiveIngredients

Nacharam

Hyderabad

Team of 60 people with 39 scientists including 2 PhDs GLP compliant labs recognised by Council for Scientific and Industrial

Research

Huddersfield

UK

Team of 7 scientists including 4 PhDs

Kilo Lab for Hair Dyes and Photochromics, collaboration withuniversities and knowledge banks

Focus on idea-generating research right from creation of a molecule topartnering with a manufacturer

5

Global R&DCenters

R&D Strength

120

scientists

R&Dexpenditure

3% of sales

Global R&D CentreInternational R&D


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Agenda

1. Group Overview

2. Operations





7. Key Takeaways


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Key Management Profile

Santosh VaralwarManaging Director & Chief

Executive Officer

First generation entrepreneur Business growth strategy and leadership; Focus on key global client relationships Previously associated with Shipping Corporation of India

Subhash Varalwar

Vice Chairman

Responsible for technology and new product development in the Active Ingredients segment Previously associated with Fertilizer Corporation of India for 15 years

Sandeep Varalwar

Executive Director

Associated with Vivimed since its incorporation Leads Vivimeds Healthcare FDF division

Over 18 years of experience in manufacturing and marketing in the Healthcare industry

Mark I Robbins

Chief Executive, Uquifa,

Vivimeds API Division

Associated with Chemicals and API industries for over 23 years Previously a member of the management executive committee of Yule Catto, UK Previously worked with Johnson Matthey for 10 years Member of the Institute of Marketing and Engineering , UK

George Polson

COO, Specialty Chemicals,

VLI, USA

Leads the operations of the Global Specialty Chemicals Division Industry experience of over 30 years with reputed companies such as Lonza and DSM

Holds ~40 US and World patents

Member of the American Chemical Society (ACS), the Society of Cosmetic Chemists (SCC), andSociety of Investigative Dermatology (SID) and American Society of Pharmacognosy

Strong Transnational Management TeamCorporate Structure


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Independent DirectorNominee Director

Nixon Patel

Entrepreneur withexperience in IT,

telecom, pharma

and renewable

energy sectors

PaaluriVenkata Rathnam

Over 45 years ofexperience in

chemicals.,

fertilizers, pharma,

auto and electrical

engineering

industries

Dr. M. BhagvanthRao

Former Dean ofDevelopment and

UGC affairs,

Osmania

University,

Hyderabad

Dr. PeesapatiVenkateswarlu

Former Professor,Dept of Medicinal

Chemistry,

National Institute

of Pharmaceutical

Education and

Research, Hyd.

SrinivasChidambaram

MD & CEO, JacobBallas

S. Raghunandan

Executive Director

Sandeep Varalwar

Executive Director

Santosh Varalwar

Managing Director

Subhash Varalwar

Executive Director

Dr. V. Manohar Rao

Executive Director

Eminent Board MembersCorporate Structure


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32

VLL, India Vivimed Labs LimitedCHPL Creative Healthcare Private LimitedKSL Klar Sehen LimitedONL Octtantis Nobel LabsVLE, UK Vivimed Labs Europe

VLI, US Vivimed Labs INC

Vivimed Labs Ltd.

Personal & HomeCare & Industrials

Healthcare

Contract FDF BrandedFDF APIsActive

Ingredients

VLL, India CHCPL KSL ONL Finoso Uquifa VLL, India VLE, UK VLI, US

Organisation StructureCorporate Structure

Production&

Marketing

Production&

Marketing

Production&

MarketingDistribution

FormulationR&D

Production,Marketing

andR&D

Production,SalesandR&D

Marketingand R&D

Marketing&

Distribution


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33

Agenda

1. Group Overview






7. Key Takeaways


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Note:1 In Q4 FY2013, Jacob Ballas converted its convertible preference sharesresulting in dilution of Promoters stake

39.7%

27.5%

0.3%

32.5%

Promoters FII DII Others

34

Shareholding Structure

As on 28.6.2013

Market price (Rs.) 258.95

52 week H/L (Rs.) 415.00 / 254.90

Market capitalization (Rs. mn) 4,160

Equity share outstanding (mn) 16.06

Face value (Rs.) 10

Shareholding Pattern Trend

Shareholders Jun-12 Sep-12 Dec-12 Mar-13

Promoters1 45.2% 45.2% 45.2% 39.7%

FII / FDI 18.2% 17.2% 16.4% 27.5%

DII 1.6% 0.4% 0.3% 0.3%

Others 35.0% 37.2% 38.1% 32.5%

Total 100.0% 100.0% 100.0% 100.0%

Market Data Key Institutional Investors

Market DataFinancial Overview


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35

Net Revenue EBITDA and Margin

Net Profit and Margin EPS

Historical Financial PerformanceFinancial Overview

3,5004,170

6,710

11,207

FY 2010 FY 2011 FY 2012 FY 2013

Rs.

Million

696 8761,330

1,976

19.9%21.0%

19.8%

17.6%

FY 2010 FY 2011 FY 2012 FY 2013

Rs.

Million

EBITDA Margin (%)

310

488 631 836

8.9%

11.7%9.4%

7.5%

FY 2010 FY 2011 FY 2012 FY 2013

Rs.

Million

Net Prof it Margin (%)

31.87

48.0445.31

52.04

FY 2010 FY 2011 FY 2012 FY 2013

Rs.

PerShare

Margin (%)


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66.6%33.4%

36

820 997

3,3217,38421.0%

16.6%13.9%

9.6%

FY 2010 FY 2011 FY 2012 FY 2013

Rs.

Million

Net Sales PBIT margin

FY 2013:

Rs. 11,088

million

Healthcare Sales and PBIT Margin

Net Sales

Historical Segment PerformanceFinancial Overview

Specialty Chemicals Personal Care Home Care Industrials

Healthcare API Contract FDF Branded FDF

2,615

3,163 3,363 3,704

16.7%

18.8%17.9% 18.4%

FY 2010 FY 2011 FY 2012 FY 2013

Rs.

Million

Net Sales PBIT margin

Specialty Chemicals Sales and PBIT Margin


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37

ROE (%) ROCE (%)

Commentary

Return ratios to be further improved throughhigher asset turnover, better profitability, low

working capital and lesser capital intensity

Improving capital efficiency ratio, return on equityand return on capital employed are threebusiness objective over the next 24 months

ROE= profit after tax / (networth-preference share capital) ROCE= EBIT / capital employed

Profitability RatiosFinancial Overview

21.4%24.8%

18.4% 18.8%

FY 2010 FY 2011 FY 2012 FY 2013

12.0%13.1%

8.1%9.4%

FY 2010 FY 2011 FY 2012 FY 2013


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3838

Key Observations

Focused on productivity management,tighter procurement, more accurate salesforecasting and production planning

Tighter credit policies helped improve thedebtor days

Using more effective inventorymanagement in the Specialty Chemicalsand API businesses

100112 121

100

43 39

86

54

84 74

135

111

141 147

171

157

FY 2010 FY 2011 FY 2012 FY 2013

Numberofd

ays

Debtor days Creditor days

Inventory days Working Capital Cycle days

Working Capital Cycle

Working Capital CycleFinancial Overview


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Net Debt Profile Leverage Ratio

Agency Instrument Rating

CARE Short-Term Funds A2+

CARE Long-Term Funds A-

2.87

3.503.74

3.39

0.00

1.50

3.00

4.50

FY 2010 FY 2011 FY 2012 FY 2013

Interest Coverage Ratio (x) Credit Rating

1.58 1.50

0.961.13

3.29 3.38 3.42

2.91

FY 2010 FY 2011 FY 2012 FY 2013

Net Debt/Equity (x) Net Debt/EBITDA (x)

2,289 2,959

4,5455,741

FY 2010 FY 2011 FY 2012 FY 2013

Rs.

Million

Net Debt

Leverage ProfileFinancial Overview


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40

Agenda

1. Group Overview






7. Key Takeaways


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41

Key Takeaways

Chemistry at theCore

Strong

management team

with rich and diverse

industry experience

Presence acrosshigh growth and

stable marginbusinesses

Successful

integration leadingto a global

chemistry platform

Blue chip

customer basestrengthened by apartnership model

Healthcare:Present across the

full value chain

Focus oninnovative R&D

and productdevelopment

US FDA approved

world classmanufacturing

facilities

Active Ingredients:

Well established ina high entry barrier

business


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Glossary

ANDA: Abbreviated New Drug Application

API: Active Pharmaceutical Ingredients

CMO: Contract Manufacturing Organization

DMF: Drug Master File

FDF: Finished Dosage Formulation

H&PC: Home and Personal Care

MRs: Medical Representatives

MA: Marketing Authorization


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Thank You

Contact Details:

Vivimed Labs LimitedVeernag Towers, Habsiguda, Hyderabad 500 007

+91 40 2717 6005, 6006

www.vivimedlabs.com

Lalitha Swathi

Vivimed L abs Lim i ted+91 40 2717 6005

[email protected]

Saket Somani

Churchg ate Partners+91 22 3953 7444

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]

Vivimed Investor Presentation July 2013

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Transcript of Vivimed Investor Presentation July 2013