Passion for progress, care for people

Transcription

1 Passion for progress, care for people SPIL Analyst Meeting 25 th April, 2008

2 DISCLAIMER ACTUAL RESULTS / OUTCOMES MAY BE DIFFERENT FROM ANY FORWARD LOOKING STATEMENTS / VIEWS / ESTIMATES EXPRESSED HEREIN. THIS PRESENTATION IS NEITHER A PROSPECTUS NOR AN OFFER / RECOMMENDATION / INVITATION FOR PURCHASE OR SALE OF ANY SHARES OF THE COMPANY. ERRORS OR OMISSIONS EXCEPTED. THIS PRESENTATION IS PROPRIETARY TO THE COMPANY AND MAY NOT BE COPIED OR DISSEMINATED IN ANY MANNER. 10/8/2008 1

3 Content Solvay pharma global a brief introduction The Indian Pharma market SPIL Overview Review 2007 Path 2008

4 BUILDING THE NEXT SOLVAY PHARMACEUTICALS A brief Global Perspective

5 Solvay Pharmaceuticals Pharmaceuticals sector of the Solvay Group A R&D driven company Seeks to fulfil carefully selected, unmet medical needs More than 9,000 employees Active in all continents

6 R&D Portfolio focus metabolic Cardio- Neuro- science Influenz a Vaccines Pancreatic Enzymes Gastro Enterology Women s & Men s Health KEY FOCUS AREAS Sustain and build on market leadership New products by inlicensing & acquisition SPECIFIC MEDICAL NEEDS Sustain and build on market leadership New products by in-licensing & acquisition MARKETING EXCELLENCE Sustain and build on market excellence & leadership New products by in-licensing & acquisition With Full R&D In range of biological targets and indications With Full R&D New influenza vaccine technologies New pancreatic enzyme replacements No R to POP With development possibilities

7 Topline growth 10 years significant growth in revenue M EUR +11%/y includes Fournier SALES

8 Bottomline growth 10 years REBIT growth 17.6% 17.3% M EUR REBIT REBIT/Sales 14.1% 13.3% 13.5% 13.3% 10.5% 11.2% 11.6% 11.6% 11.5% 8.7%

9 Solvay Pharmaceuticals in 2007 in % of 2007 sales : EUR 2,591 M 8% 28% 23% 17% 6% 7% 11% 28%Cardiometabolic 17%Neuroscience 6% Influenza vaccines 7% Pancreatic enzymes 11%Gastroenterology 23%Women s and Men s Health 8% Others

10 Development of a Chemical & Pharmaceutical group Limestone Salt Fluor Kali Chemie (1952) Major pharmaceutical acquisitions Soda Ash (1866) Molecular Solutions (Girindus) (2005) Electrolysis (1898) Hydrogen Peroxide (1958) + Ausimont in 2002 (chemicals/polymers) Vinyl s (1949) Specialty Polymers + BP Specialty polymers (2001) (1960) Gharda Mississipi Polymer technologies Chemicals Plastics Processing DUPHAR 1980 REID ROWELL (USA) 1986 UNIMED (USA) 1999 Fournier Pharma 2005 Pharmaceuticals

11 Three profitable & cash generating sectors with specific strategies for growth In % of 2007 Sales 1 In % of 2007 REBIT 2 b 27% 32% c a d 37% 28% f e 41% 35% Pharmaceuticals (a) Chemicals 3 : (b) Minerals, (c) Electrochemistry and Fluor Products, (d) Oxygen Plastics : (e) Vinyls, (f) Specialty Polymers and Inergy Automotive Systems 1 Total 2007 Sales = EUR 9,572 M 2 Total 2007 REBIT = EUR 1,192 M, including also Corporate and Business Support of EUR -51 M 3 Including the Organic cluster (i.e. Molecular Solutions SBU)

12 Indian Pharma Market

13 The Indian Pharma market Total IPM Total Sales ,4 Bio INR Value Growth vs. prev. year + 13,4% Volume Growth vs. prev. year + 5,8% Source: IMS, MAT 12/07, retail sales only Within the next years IMS predicts value growth between 12 to 14% (incl. hospital segment)

14 India will remain a branded generic market Patented drugs 2% 7% Branded Generics 75% 88% Generics 10% 18% 0% 50% 100% Source : E&Y - Progressions 2006 (estimates on values)

15 India: Influence of physicians remains high

16 SPIL Overview

17 Our Values We firmly believe in : Ethical behaviour Respect for people Customer care Empowerment Teamwork

18 SPIL: Therapeutic fields and main products Neuroscience Gastroenterology Women s health Vaccine Influvac Duphalac Creon Colospa Udiliv Eldicet Pankreoflat Vertin Uvox Duphaston Utrogestan Duvadilian Puregon Nugon Arachitol ENT Solspre Ebasil

19 SPIL review 2007

20 Mio INR SPIL Sales Performance 2,000 1, ,4% 1, ,441 1,678 0 Act 2006 Act 2007

21 Major Products Performing > Expectations 2006 growth vs growth vs Duphaston 15% 18% Vertin Group 11% 21% Udiliv Group 10% 18% Duphalac Group 20% 18% Creon Group 27% 56%

22 Mio INR SPIL: Sales development 2,000 1,750 1,678 1,500 1,250 1,161 1,297 1,441 1,

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24 Financials 2007 amounts in KINR 2006 % of 2007 % of Net sales Net sales Gross Sales 1,440,944 1,677,707 Other Income 35,593 37,400 a. Cost of Goods Sold 635, , b. Staff cost 173, , c. Other expenditure 326, , Total Expenditure (a to c) 1,134, ,236, Interest Depreciation & amortisation 45, , Profit before Tax 295, , Net Profit 187, ,

25 SPIL: Profitability indicators Annual Annual ratios Return of Capital Employed 49% 36% Return of Net Worth 32% 23% Gross Profit Margin 52% 50% Operating Profit Margin 24% 19% Net Profit Margin 15% 12% Material Cost to Sales 38% 40% Personnel Cost to Sales 10% 11% Operating Cost to Sales 19% 21%

26 SPIL: Valuation indicators Annual Annual Annual Valuation ratios Earnings per share in Rs. Book value per share in Rs

27 Share Price (INR) SPIL Stock progression High Low

28 per month Volume of Shares Traded 140, , , ,000 98,437 93,244 80,000 60,000 40,000 53,761 58,581 20, ,

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30 SPIL : Looking ahead, path

31 The next milestone Crossing INR 200 Crs!

32 SPIL: Purchase of office premises Premises at Goregaon (East) Approx. 26,000 sq. ft. area Agreement signed April 2008 Premises ready for fit out

33 Major challenges 2008 and beyond Double digit growth Generic competition People retention & recruitment National Pharma Policy & Essential Drugs List Patent Regulations related Issues Threat from irrational combinations and counterfeits Forex: Exchange rate Rupee vs. Euro

34 Thank you! Please visit our web-site Any questions?

35 To the extent that any statements made in this presentation contain information that is not historical, these statements are essentially forwardlooking. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties because of a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations; changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals; regulatory approval processes, all-in scenario of R&D projects and other unusual items. Consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "believes," "may," "could" "estimates," "intends", "goals", "targets", "objectives", "potential", and other words of similar meaning. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update any forward-looking statements"