Presentation March 2007 1
Corporate Overview 2
Corporate Overview Leading provider of research-driven packaging solutions solely-focused on pharmaceutical industry Founded in 1994 and based in Pune, India with global presence Manufactures packaging materials to significantly enhance function, physical efficiency and safety of medicines Leading producer in Asia (62% share of Indian barrier blister packaging market) and provides world-class packaging research and clinical trial services Operates state-of-the-art, award-winning manufacturing and research facilities in India, Singapore, UK and the US DMF with US FDA facilities in India and Singapore "Pioneer Status" awarded by Singapore government FDA and DEA approved clinical services facility in the US MHRA approved facility in UK Pioneering and patented packaging technology Optimum packaging solutions devised in just 4 weeks using patented process (historically has taken pharmaceutical companies up to 2 years) Significant cost savings benefits for pharmaceutical companies Leading packaging solutions through R&D Global client base with long-term contracts and 100% customer retention USA Singapore India 3
Global Footprint UK Clinical trial services facility MHRA approved site INDIA Films & foils production Clinical trial services facility 1 st in Asia Research facilities DSIR approved Award winning OPPI Best Vendor consecutively UK Germany US India China USA Clinical trial services facility 14 acre FDA & DEA approved site Films & foils secondary production Brazil Singapore Australia 23, UK SINGAPORE Films production & research centre Clinical trial services facility Pioneer Status from Singapore Govt. 4
Global Customers 5
Pharmaceutical Value Chain US$130bn US$250bn US$120bn Drug Discovery Formulation Development Clinical Trials Manufacturing & Packaging Market 6
Pharmaceutical Value Chain (Cont d) Drug Discovery Formulation Development Clinical Trials Manufacturing & Packaging Market Packaging Materials Poly films Aluminium Foils Paper Composites Systems Bilcare Connect 7
Pharmaceutical Value Chain (Cont d) Drug Discovery Formulation Development Clinical Trials Manufacturing & Packaging Market Clinical Services Packaging Materials Batch Manufacturing Primary Packaging Labeling Distribution & IVRS Poly films Aluminium Foils Paper Composites Systems Bilcare Connect 8
Pharmaceutical Value Chain (Cont d) Drug Discovery Formulation Development Clinical Trials Manufacturing & Packaging Market Research Services Formulation Analytical Stability Studies Packaging Audit Packaging Development Clinical Services Batch Manufacturing Primary Packaging Labeling Distribution & IVRS Packaging Materials Poly films Aluminium Foils Paper Composites Systems Bilcare Connect 9
Competitive Value Chain Food Cosmetics FMCG etc Pharma Stationary Credit Card Food etc Pharma Laminates Laminates Foils Coating Coils Films Ingots Bauxite Resin ALCAN Aluminium-focused EVC (INEOS) Polymer-focused 10
Financials 11
Financial Highlights Financial Year ended 31-Mar-04 31-Mar-05 31-Mar-06 USDM Audited Audited Audited Profit and loss Revenues 24.8 37.3 54.8 EBITDA 5.2 9.7 15.6 EBITDA Margin 21% 26% 29% Profit Before Tax (PBT) 3.2 7.8 13.1 PBT Margin 13% 21% 24% Profit After Tax 2.4 5.6 9.0 Balance Sheet Networth 10.3 25.9 35.1 Total Debt 11.2 17.3 77.2 * Total Assets 26.7 51.2 122.3 Current Ratio 1.1x 2.8x 5.97x *Includes a USD50m Foreign Currency Convertible Bond 12
Sales & Profitability 60.0 54.8 35% 50.0 29% 30% Sales CAGR of 30% during FY 04 FY 06 40.0 21% 37.3 26% 25% USD millions 30.0 20.0 24.8 15.6 20% 15% 10% EBITDA CAGR of 44% during FY 04 FY 06 10.0 5.2 9.7 5% 0.0 FY'04 FY'05 FY'06 Sales EBITDA EBITDA Margin 0% 13
Bilcare Approach 14
Pharma Packaging Research Brand Challenges Compliance $150 Bn revenue loss + higher insurance cost Counterfeit $50 Bn + brand credibility Communication Accidental misuse Convenience Senior citizen child protection Patient friendly Cost Over-packed Shelf life loss 15
Pharma Packaging Research Market Landscape Market size - $3 Bn (2005) to $5 Bn (2010) Challenges for Pharma are becoming complex Global supply chain Pharma specific requirements Boardroom challenges 5C s (growth) Vendors continue to remain commodity suppliers Local and / or regional Product vertical with emphasis on backward integration Distribution through agents & distributors 16
Pharma Packaging Research Bilcare Strategy Brand management Top 1,000 brands of top 200 global pharma Facilitate exponential growth of customers brands Customer s customer retention Therapeutic consolidation from 5-15% to 35-40% Strategic markets Top 18 markets (90%) US / Canada / Mexico / Brazil / Argentina Germany / Switzerland / France / UK India / Pakistan / Bangladesh / Turkey Japan / China / South Korea / Indonesia / Thailand Effect Bilcare emerging as the catalyst for pharma brand consolidation Long term contracts for Bilcare with strong margins Consistent high growth for Bilcare globally Leadership position by 2010 17
Case Study: ShelCal Bilcare was engaged by ShelCal (Calcium) to develop anti-counterfeiting solutions for their pharmaceutical products ShelCal a market leading brand of calcium tablets based in India ShelCal s market leadership was under threat due to counterfeiting Bilcare was engaged to devise a packaging solution to eliminate the counterfeiting Bilcare Solution Drug sensitivity research completed in 4 weeks Changed packaging materials for anti-counterfeit Packaging designed for brand enhancement End Result: Counterfeiting was essentially eliminated ShelCal experienced sales growth of over 30% As a result of Bilcare s efforts, ShelCal s distinct brand proposition was established Bilcare s innovative solution for ShelCal resulted in a multi year contract of over US$ 3.0 million along with packaging development contracts for all leading brands of the company 18
Case Study: Cifran Ranbaxy engaged Bilcare to develop packaging strategy for its leading brand Cifran to counter increasing adverse impact of pass offs and counterfeits Cifran a leading Antibiotic brand Cifran, the market leader was under threat due to increasing number of pass offs and counterfeit Issues of counterfeit were tried to be addressed using isolated solutions Brand was looking for a new marketing strategy Bilcare was engaged to create a new packaging solution to establish distinct identity as well as eliminate counterfeit Bilcare Solution Packaging designed for brand enhancement based on a dip-stick market survey of various stake holders Use of novel packaging material for establishing distinct identity & eliminate counterfeit End Result: Counterfeiting was essentially eliminated Brand anticipates quick establishment of its position and a distinct identity of its own with over 15% sales growth Bilcare gains a multi year contract of over US$ 2.5 million 19
Case Study: Anafortan Khandelwal Labs engaged Bilcare to develop Brand rejuvenation strategy for Anafortan Anafortan a market leader in Non opioid analgesics Anafortan, a very old brand had its market leadership under threat due to multiple new brands Issues of counterfeit were tried to be addressed using isolated solutions like holograms Bilcare was engaged to convert packaging into an important marketing tool & also aid in elimination of counterfeit Bilcare Solution Packaging designed for brand enhancement Changed packaging materials for eliminating anti-counterfeit End Result: Counterfeiting was essentially eliminated Brand experienced sales growth of over 10% Anafortan brand established a distinct identity in the market Bilcare s bagged a multi year contract of US$ 1.0 million 20
Global Clinical Research Management Clinical Research Challenges Speed of trials 1 week loss = $20 Mn for $1 Bn new drug Accuracy of data Retrial can delay launch by 1-2 years Global reach Patient population in US / Europe drying up Reliability IPR World-class QA Systems Competent & Focused Outsourced Partner Important & urgent projects, yet needs to be outsourced 21
Global Clinical Research Management Market landscape Customer in-house ($1 Bn) waiting for outsourcing Competition (current outsourced) Fisher - $300 Mn out of $7 Bn (5% of the total) Aptuit - $150 Mn also in API (conflict) Almac - $100 Mn Europe & US specific Biotech are virtual companies & require full service partner 22
Global Clinical Research Management Bilcare Strategy Biotech & small size full service contracts Leverage India (for Asian trials & cost) Stay focused Global reach Leverage IT technology Effect High growth in volume & margin First mover advantage in Asia Leadership position by 2010 23
Technology & Research IPR Transforming products & services company to an IPR company Research tagline symbolizes the drive Technology acquisition Unique technologies will be acquired in synergy with strategy plan Application research Many scientists are getting added to the team Strategic alliances Honeywell kind of alliances will strengthen Bilcare s reach globally 24
Opportunities Acquisitions in both the verticals in future Need to remain continuously aware New possibilities will get emerged because of Bilcare s unique business model Strategic business alliances Products, markets & capabilities can be synergized US getting into blisters from bottles 85% of USA distribution is in bottles big opportunity Technology breakthroughs commercialization Patina has been successfully commercialized Few more are on the way Packaging development outsourcing by big pharma Big pharma are getting attracted to Bilcare capabilities 25
Thank You 26