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Jubilant Organosys Limited Corporate Presentation May 2010 0 0 - - PowerPoint PPT Presentation

Jubilant Organosys Limited Corporate Presentation May 2010 0 0 Disclaimer This present at ion and t he accompanying slides (t he Present at ion ), which has been prepared by Jubilant Organosys Limit ed (t he "Company"), has


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Jubilant Organosys Limited

Corporate Presentation May 2010

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Disclaimer

This present at ion and t he accompanying slides (t he “ Present at ion” ), which has been prepared by Jubilant Organosys Limit ed (t he "Company"), has been prepared for informat ion purposes only and is not , and is not int ended t o be, an offer, or solicit at ion of offer, or invit at ion or recommendat ion t o buy or sell any securit ies of t he Company, and shall not const it ut e an offer, solicit at ion or or invit at ion or recommendat ion t o buy or sell in any j urisdict ion in which such offer, solicit at ion or invit at ion or recommendat ion is unlawful. No part , or all, of t his Present at ion shall form t he basis of, or be relied on in connect ion wit h, any cont ract or invest ment decision in relat ion t o any securit ies of t he Company. This Present at ion is st rict ly confident ial and may not be copied, published, dist ribut ed or t ransmit t ed t o any person, in whole or in part , by any medium or in any form for any

  • purpose. The informat ion in t his Present at ion is being provided by t he Company and is subj ect t o change wit hout not ice. This Present at ion has been prepared by t he Company

based on informat ion and dat a which t he Company considers reliable, but t he Company makes no represent at ion or warrant y, express or implied, what soever, and no reliance shall be placed on, t he t rut h, accuracy, complet eness, fairness and reasonableness of t he cont ent s of t his Present at ion. This Present at ion may not be all inclusive and may not cont ain all of t he informat ion t hat you may consider mat erial. Any liabilit y in respect of t he cont ent s of, or any omission from, t his Present at ion is expressly excluded. This Present at ion cont ains st at ement s about fut ure event s and expect at ions t hat are forward-looking st at ement s. These st at ement s t ypically cont ain words such as "expect s" and "ant icipat es" and words of similar import . Any st at ement in t his Present at ion t hat is not a st at ement of hist orical fact is a forward-looking st at ement t hat involves known and unknown risks, uncert aint ies and ot her fact ors which may cause our act ual result s, performance or achievement s t o be mat erially different from any fut ure result s, performance

  • r achievement s expressed or implied by such forward-looking st at ement s. None of t he fut ure proj ect ions, expect at ions, est imat es or prospect s in t his Present at ion should be

t aken as forecast s or promises nor should t hey be t aken as implying any indicat ion, assurance or guarant ee t hat t he assumpt ions on which such fut ure proj ect ions, expect at ions, est imat es or prospect s have been prepared are correct or exhaust ive or, in t he case of t he assumpt ions, fully st at ed in t he Present at ion. The Company assumes no obligat ions t o updat e t he forward-looking st at ement s cont ained herein t o reflect act ual result s, changes in assumpt ions or changes in fact ors affect ing t hese st at ement s. You acknowledge t hat you will be solely responsible for your own assessment of t he market , t he market posit ion, t he business and financial condit ion of t he Company and t hat you will conduct your own analysis and be solely responsible for forming your own view of t he pot ent ial fut ure performance of t he business of t he Company. This Present at ion speaks as of 21 February 2010. Neit her t he delivery of t his Present at ion nor any furt her discussions of t he Company wit h any of t he recipient s shall, under any circumst ances, creat e any implicat ion t hat t here has been no change in t he affairs of t he Company since t hat dat e. This Present at ion is not being made and will not be made direct ly or indirect ly in or int o, or by use of t he mails of, or by any means or inst rument alit y of int erst at e or foreign commerce of, or any facilit ies of a nat ional securit ies exchange of, t he Unit ed S t at es. This includes, but is not limit ed t o, facsimile t ransmission, elect ronic mail, t elex, t elephone and t he Int ernet . Neit her t his Present at ion nor any copy of t his Present at ion is being, and must not be t aken or t ransmit t ed int o t he Unit ed S t at es or dist ribut ed, direct ly or indirect ly, in t he Unit ed S t at es. The informat ion present ed herein is not an offer for sale wit hin t he Unit ed S t at es of any equit y shares or ot her securit ies of t he

  • Company. No offering of t he Company’ s securit ies is being made nor will any offering of t he Company's securit ies be regist ered under t he U.S

. S ecurit ies Act of 1933, as amended (t he “ S ecurit ies Act ” ). Accordingly, unless an exempt ion from regist rat ion under t he S ecurit ies Act is available, t he Company’ s securit ies may not be offered, sold, resold, delivered or dist ribut ed, direct ly or indirect ly, int o t he Unit ed S t at es. This Present at ion is confident ial and is only addressed t o and direct ed at persons who are “ qualified invest ors” wit hin t he meaning of Art icle 2(1)(e) of t he Prospect us Direct ive (Direct ive 2003/ 71/ EC) and (i) who have professional experience in mat t ers relat ing t o invest ment s falling wit hin Art icle 19(5) of t he Financial S ervices and Market s Act 2000 (Financial Promot ion) Order 2005 (t he “ Order” ) and Art icle 49(2)(a) t o (d) of t he Order, and (ii) t o whom it may ot herwise lawfully be communicat ed (all such persons t oget her being referred t o as “ Relevant Persons” ). This Present at ion must not be act ed on or relied upon in t he Unit ed Kingdom, by persons who are not Relevant Persons. Any invest ment

  • r invest ment act ivit y t o which t his Present at ion relat es is available only t o Relevant Persons.

The dist ribut ion of t his Present at ion in cert ain j urisdict ions may be rest rict ed by law and persons int o whose possession t his Present at ion comes should inform t hemselves about and observe any such rest rict ions.

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Presentation Outline

Industry Overview Our Business Competitive Advantage Key Financials Key Highlights Growth Drivers Jubilant Organosys –A Snapshot

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Jubilant Organosys – A S napshot

Primary focus on PLSPS

Integrated pharmaceuticals outsourcing player

 Providing products and services to Pharmaceuticals and other Life Science

companies

 Largest Custom Research & Manufacturing service (CRAMS) provider out of

India

 Global positions in most of the key products and services we offer  We work with 18 of the Top 20 Pharma companies, and 7 out of the top 10

Agrochemical companies globally

 Revenue CAGR (5yr) of 30%  Market cap ~70x in 10 years 2000-2010*

PLSPS 89% APP 11% Revenue composition (FY10) – US$813m

Shareholding pattern

as on March 31, 2010

Founded by Bhartia Group

Pharma & Life Sciences Products & Services –US$ 723m Agri & Performance Polymers

  • US$ 90m

Leader in CRAMS

* Market cap of Jan 3 2000 vs Jan 4 2010 FY: Fiscal year ending March 31

Mkt Cap of ~ US$1.2 billion

Market positions sourced from Company analysis & estimates

Propriet ary product s Drug Discovery

Globally no.1 in Pyridine and it s derivat ives Among t op 3 in several APIs Leading player in Nort h America in CMO for S t erile Inj ect ables Leading player in DDDS in India

CMO

CRAMS

India’s largest CRAMS company – FY10 revenues US$ 458mn

APIs

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International sales in more than 65 countries Present in India, North America, Europe and China 8 manufacturing facilities in India and 3 in North America Employs over 5900 people including 1100+ in R&D and 1450+ in North America

Global Presence

Gajraula, Uttar Pradesh Largest int egrat ed pyridine & it s derivat ives facilit y in t he world Ambarnath, Maharashtra Exclusive S ynt hesis - Pyridine derivat ives Bangalore, Karnataka S t at e-of-art Discovery Cent re Roorkee, Uttarakhand UKMHRA approved facilit y for generics Chittorgarh, Rajasthan Agri-Product s : S ingle S uper Phosphat e Samlaya, Gujarat Animal Nut rit ion Product s Nira, Maharashtra Life S ciences Chemicals Bharuch, Gujarat S EZ for Vit amins and Life S cience derivat ives Nanjangud, Karnataka US FDA, AFS S APS & PDMA approval API manufact uring facilit y Noida, Uttar Pradesh Corporat e Office & R&D Cent res Kirkland, Quebec, Canada US FDA approved facilit y for cont ract manufact uring of S t erile inj ect ables & Non S t erile product s and RadioPharma Salisbury, Maryland, USA US FDA approved facilit y for generics Spokane, Washington, USA US FDA approved facilit y for cont ract manufact uring of S t erile inj ect ables & Non S t erile product s and Allergenic Ext ract s Bedminster, New Jersey, USA Clinical Research Cent re New Haven, Connecticut , USA Market ing Office Corporat e Office Branch Offices Manufact uring Facilit ies R&D Facilit ies Indian S ubsidiaries Int ernat ional S ubsidiaries

Pune Hyderabad Chennai Lucknow

Gent, Belgium Regulat ory & Generic Market ing Shanghai, China Market ing Office

Not e: This illust rat ion is not exhaust ive. This illust rat ion is not t o scale

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Industry Overview

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Declining growth in global Pharmaceutical market

Trends in global pharmaceutical industry support shift towards outsourcing

499 715 773 975+ 560 605 648 6.8% 6.6% 4.8% 10.2% 7.9% 7.2% 200 400 600 800 1,000 1,200 2003 2004 2005 2006 2007 2008 2013E (US$bn) 2% 4% 6% 8% 10% 12% CAGR: 4 to 7% Growth Over Previous year (%Growth Constant US$ ) S

  • urce: IMS

Healt h

Government al pressure t o reduce market price of product s on account of spiraling healt hcare cost s

Pat ent expiry of many key innovat ive product s result ing in pressures on revenues and margins

Declining R&D product ivity leading t o reduced pipeline

Global Pharma experiencing declining growth & margin pressure

Pressure t o reduce manufact uring cost s t o prot ect margins

Increasing need t o develop innovat ive product s fast er and at low cost

Changing mindset s t owards R&D and manufact uring out sourcing

Key Drivers for Global CRAMS Industry

(%) yoy Growth Market size

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15 18 21 25 42 37 33 29 44 51 58 67 20 40 60 80 2007 2008 2009E 2010E (US$bn) Drug Discovery & Development Global Cont ract Manufact uring Out sourcing spend

S ignificant future growth opportunity in outsourcing

S

  • urce: OPPI - Ernst & Young Report 2009

CMO account s for 24%

  • f t ot al pharmaceutical manufact uring spending

API and int ermediat es cont ribute almost 67%

  • f t he t ot al out sourcing market

Many of t he emerging bio-pharma and biot ech companies do not have t he int ernal manufacturing capacit y and are out sourcing as t he cost of invest ing in new facilit ies is prohibitive

Products (CMO)

Global pharma spending for R&D was US $129bn in 2008. Drug discovery and development market cont ribut ed US $49bn and out sourcing was 37%

  • f t ot al drug discovery and development market

Discovery led out sourcing opport unit y t o reach US $ 8 bn by 2010

Development led out sourcing opport unity t o reach US $ 17 bn by 2010

Services (CRO)

Indian CRAMS Market Global Outsourcing Spend

World-class US FDA compliant infrast ructure set up by leading players

Large t alent pool and low R&D and manufacturing cost

High capit al efficiency

India Advantage

0.3 0.6 0.9 1.5 2.3 1.6 1.1 0.8 1.1 1.7 2.5 3.8 1 2 3 4 2007 2008 2009E 2010E (US$bn) Drug Discovery & Development Indian Cont ract Manufact uring Out sourcing spend

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Jubilant’ s Unique value proposition

“ One stop shop for the global pharma industry”

Lead molecule identified Lead molecule identified Launch Expiry

S

  • urce: OPPI - Ernst & Young Report 2009

DDDS Exclusive Synthesis+ clinical trials (Ph I-III) Intermediates, API & CMO Intermediates, API & Generics

JUBILANT PRESENCE ACROSS VALUE CHAIN

Full scale manufacturing Discovery Development Discovery research Pre-Launch On-patent growing On-patent mature Off patent Research biology and chemistry

  • Ph

IIb Research biology and chemistry

  • IIb

Ph IIa Ph III Ph I Pre clinic Contract manufacturing Contract research

Jubilant offers services across the entire Pharmaceutical Value Chain

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Jubilant’ s Unique value proposition

“ A preferred partner of Choice”

  • Ensuring innovative product pipeline with

lower R&D spend

  • High quality and low cost drug discovery

and development services for expanding pipeline of innovative products

  • Governmental pressure to reduce market

price levels

  • Products from pre- clinical to clinical,

intermediate to finished at speedier, high quality & lower cost

  • High in-house cost of manufacturing
  • Contract manufacturing services at

substantially lower cost than their internal cost with high quality and on time deliveries

  • Patent expiry induced revenue & margin

pressures

  • Complete life cycle management from

pre to post patent expiry of innovative products Jubilant’s offerings Key challenges faced by global pharma Jubilant provides a competitive advantage to global pharma & biotech companies

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Our Business

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Net Revenue FY10 US$813m EBITDA FY10 US$178 m Capital Employed FY10 US$1,245 m PLS PS 89% APP 11%

Segment Breakup

PLSPS 96% APP 4%

Demerger Details

To enhance Jubilant’s focus as a Pharma and Life S ciences company, the Company’s Board has in- principle approved the demerger of its Agri and Performance Polymer business into a separate company Objectives of Demerger

To further sharpen Jubilant Organosys as a Pharma and Life S ciences entity

To create two independent listed and focused companies to pursue rapid growth opportunities

To enable each company to adopt a capital structure and investment policy more tailored to its specific needs

To enable greater stakeholder value recognition

APP includes

Agri-Product s

Performance Polymers PLSPS includes

CRAMS

Pharmaceut ical Product s

Life S cience Chemicals

Nut rit ion Ingredient s

Healt h Care - Hospit als

Overall Business Profile

1US D=46.53INR

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CRAMS 63.4%

Others (US$ 183m) Pharmaceutical Products (US$ 82m) CRAMS (US$ 458m)

PLSPS component segments breakup FY10 PLSPS Revenue Breakup FY10

PPES 44% APIs 13% CMO 31% DDDS 12% Life Sciences Chemicals 76% Nutrition Ingredients 23% Healthcare 1%

Health Care – 0.2%

FY10 Revenues (US$ 723m)

Pharma & Life S ciences Products & S ervices (PLS PS )

Generating synergies from Integrated offering

PPES

  • Propriet ary Product s& Exclusive S

ynt hesis; API: Act ive Pharma Ingredient s; CMO: Cont ract manufact uring operat ions; DDDS : Drug Discovery & Development services; CRAMS – Cust om Research and Manufact uring S ervices; PP - Pharmaceut ical Product s; LS C – Life S cience Chemicals; NI- Nut rit ion Ingredient s

Specialty Pharma 60% Generics 40%

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Leadership Position* PPES

 Custom manufacturer of advanced intermediates, innovator active ingredients &

preparatory products to global pharma and agrochemical companies

 S

ervice offerings include route design, process development & analytical method development Globally No.1 in Pyridines & 11 advanced intermediates

CMO – Sterile & Non Sterile Products

 CMO services for Lyophilized products, liquid fills, biologics, suspensions and WFI

/ diluent and clinical trial quantities

 CMO services for ointment, cream and liquid

Leading player in North America in CMO for S terile inj ectables

API

 Provider of bulk drugs to generic pharma companies  Focus on therapeutic segments - CVS

, CNS , Gastro-intestinal and anti-infectives

 Filed 37 DMFs in US

A, 19 in Canada and 17 in Europe Globally No.1 in carbamazepine, Oxcarba- mazepine, Lamotrigines and No.2 in Citalopram, Risperidone in generics

Drug Discovery & Development Services

 Providing integrated Drug Discovery and Development S

  • lutions to global pharma

and biotech companies

 Discovery Research: Target to IND, functional services, medicinal chemistry and

scale up synthesis

 Clinical Research: Integrated from Phase I to Phase IV in US

, Europe and India

 JV with Lilly for managing drug development from Pre-clinical to Phase II –

proof of concept Leading player in India in Drug Discovery & Development S ervices

PLS PS

  • CRAMS

*Market positions sourced from Company analysis & estimates

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Pharmaceutical Products

Radio Pharmaceuticals

 Development, manufacture and marketing of radiopharmaceutical products for

diagnostic and therapeutic use

 Applications include cardiology, oncology, thyroid uptake & scan, lung scan,

kidney & brain imaging, bone scan etc Allergenic Extracts

 Maj or therapeutic and diagnostic extracts for allergy derived from pollens,

animals and stinging insects venoms Generics

 Provider of high quality finished dosage forms (tablets and capsules)  Leader in I-131 in US

A with ~69% market share

 Globally among top 3 in

several Generics

 Globally among top 3

leading allergy therapy companies

Healthcare

 A hub & spoke model to provide affordable high-quality health care services in

West Bengal, India, plans to set up total of 1000 beds with investment of US $ 40m (operational 265 beds currently)

Nutrition ingredients

 Leading provider of nutritional ingredients for pharma, human and animal

applications such as Niacin, Niacinamide and Choline Chloride

 Top 3 position globally

for Nicotinates

Lifescience chemicals

 Product supplies to Life science industry such as Acetic Anhydride and Ethyl

Acetate

 Among Top 4 in Acetic

Anhydride globally & No.1 position in India

 Among Top10 in Ethyl

Acetate globally

Leadership Position*

PLS PS

  • Others

*Market positions sourced from Company analysis & estimates

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Agri Products

 Leading producer of fertilizers (S

ingle S uper Phosphate) and engaged in marketing of Agrochemicals for Crop Protection in India

 Top 3 in India for S

ingle S uper Phosphates

Performance Polymers

Food Polymers

 Leading provider of chewing gum base (solid PVA) to global chewing gum

manufacturers Latex

 Leading provider of VP Latex and S

BR Latex for application in tyre cord and conveyor belt globally Consumer Products

 S

trong number 2 position for adhesives, sealants & decorative products for furniture, footwear and allied industries

 S

trong distribution network with ~600 distributors, 25000 retailers & 25 direct customers under the Jivanj or brand Application Polymers

 Extensive range of adhesives and binders for Packaging, Textiles and Coatings  India No.1 and Globally

  • No. 3 for food polymers

 V P Latex : India No.1

and Globally No. 4

 Consumer adhesives &

polish brands of “ Jivanj or” is the 2nd largest in India

Leadership Position*

Agri products & Performance polymers (APP)

*Market positions sourced from Company analysis & estimates

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Business strength validated by high quality relationships…

Top 25 cust omers 29% Remaining cust omers 71%

… with low concentration risk

FY10 Revenue US$813m

Reputed & high quality relationships

High quality customers in 68 countries globally across all business segments

Our clients

  • 18 out of t op 20 pharma
  • 7 out of t op 10 agro chemical

companies

AMGEN AstraZeneca Duke Medicine Endo Pharmaceuticals Forest Laboratories GE Healthcare GlaxoSmithKline Guerbet Johnson & Johnson Lilly Merck Orion Southern Research Institute Syngenta UAB Research Foundation

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Competitive Advantage

Vertical Integration Continuous Improvement

B A

Culture of Innovation

C

Focus on Premium Regulated Markets

D

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Vertical Integration Synergistic Integration

Basic Chemicals 3 products Pyridines and picolines 10 products Intermediates Phase I & II in gm – kg quantities Solid Dosage Tabs, caps API’s / Intermediates Specialty Generics / Generics Early Drug Discovery Structural Biology, medicinal chemistry & HTS High value derivatives 150 products and growing Finished products Commercial multi ton quantities Sterile Liquid / Lyopholization Specialty Pharmaceuticals

Allergy, radio- pharmaceuticals

Integrated Drug Development

  • Proj. Mgmt, exec

upto Phase II, POC

Exclusive Synthesis Proprietary products & Intermediates CMO Finished Products Drug Discovery & Development Services

Advanced Intermediates Phase III – ton quantities Non Sterile Ointment cream and Liquid Drug Development Pre clinical & Clinical Services

Vertical Integration

A uniquely synergistic and vertically integrated portfolio offering competitive advantage

A

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Continuous cost improvements

Improvement in efficiency norms

World class supply chain management leading t o reduced working capit al

Operat ional improvement t hrough employee part icipat ion

Invest ment in R&D for new product / process development

Capacity increase t hrough de-bot t lenecking Lean management & Six Sigma

 Removing process inefficiencies  Addressing process variat ion  Alignment t o cust omer requirement  Talent pool of 33 Black belt & 641 Green belt

working on 171 proj ect s

 Improve plant effect iveness & asset ut ilisat ion

t hrough Tot al Product ivit y Management

Manufacturing excellence Design excellence Customer excellence

Continuous improvement

Project Management

 Effect ive t ime and cost management for

cust omer’s new product development proj ect s Customer dashboard & forecasting

 Analyt ics for bet t er business decision making

and forecast ing accuracy DFSS

Cut in cycle t ime of product development and process development Design for Six Sigma (DFSS)

 Cut in cycle t ime of product development and

process development

Amongst the low cost producers globally for most products

B

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Infrastructure

 S

tate-of-the-art, GLP compliant R&D facilities

 1100+ strong R&D team across 8 locations

globally

 Expertise in development of non-infringing

processes for APIs and Dosage forms

 S

trong IPR and Regulatory Affairs

 High skill and low cost operation  Large number of process patent applications filed -

230 (API: 49, CRAMS : 28, IR Dosage forms: 14, NDDS : 20, Radiopharma: 10, Chemicals and Life S ciences : 109)

 Three-platform technologies developed for taste

masking, orally disintegrating, and delayed release

 Ability to do specialized formulations and design

equipments for radiopharmaceuticals

R&D Focus Areas

 CRAMS

: Process & Product development

 API: CNS

, CVS , gastro-intestinal, anti allergy

 Dosages forms : IR & NDDS

Products

 Drug Discovery & Development services  Integrated Drug Development  Radio Pharmaceuticals  Allergenic extracts

Culture of Innovation

C

Strengths Providing innovative products and economically efficient solutions

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71 114 198 331 381 50 100 150 200 250 300 350 400 450

2005-06 2006-07 2007-08 2008-09 2009-10

US $m

North Am erica Europe Total

Growing presence in high value markets

 Moving up the value chain in geographies  Regulated Markets contribute 73%

  • f PLS

PS international revenues; 5 Y ears CAGR ~47%

 Higher margins and steady revenue growth

Strategic multi-location presence

Multi-location strategy to meet customer needs of CMO & CRO businesses

Outsource to India for cost competitive advantage (e.g. intermediates, API, research services)

Dual manufacturing facilities for solid dosage in US & India

Present in North America for manufacturing of sterile inj ectables to meet innovator pharma companies requirements

Radiopharmaceutical presence in North America due to nature of products and proximity to key markets

Offer clinical research in US A, Europe and India to provide global execution capabilities

Regulated Market ~47% CAGR

Focus on premium regulated markets

D

PLSPS Revenues in regulated markets

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Key Financials

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55 83 106 134 20 40 60 80 100 120 140 160 FY07 FY08 FY09 FY10 (US$m)

49 64 61 91 30 60 90 120 FY07 FY08 FY09 FY10 (US $m)

Consolidated Financials

EBITDA Revenue Cash Profit PAT

Cash Profit : PAT + Deferred t ax + Depreciat ion 1US D=46.53INR Revenues from sales and services; Ot her income not included

210 235 288 285 179 300 468 527 200 400 600 800 1,000 FY07 FY08 FY09 FY10 (US $m)

International Domestic

68 108 132 178 30 60 90 120 150 180 210 FY07 FY08 FY09 FY10 (US $m)

389 535 756 813

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695 192 105 151 448 247 200 400 600 800 standalone debt - FCCB standalone debt - Other FCL standalone debt - INR standalone Total S ubsidiary debt Total debt (US $m)

Debt profile (31 Mar 10) Debt maturity profile

Comfortable liquidity position

JUBILANT

Debt distribution Average interest rates Total average interest rate (excl FCCB): 5.9%

FCL debt (ex FCCB) 69% INR debt 31%

Interest rate 10.6% Interest rate 3.5% Leverage ratios Net debt to equity 1.1x Net debt to EBITDA 2.9x Interest coverage ratio 5.5x Cash & cash equivalent (US$ m) 156

figures as of 31 Mar2010 48 137

  • 5

2 58 183 50 100 150 200 FY11 FY12 FY13 FY14-16 (US $m)

Jubilant standalone debt - Other Jubilant standalone debt - FCCB

 No maj or debt repayments in FY11 & FY12 ot her t han FCCBs  Repayment s out of subsidiary cash flows Jubilant standalone Subsidiaries

41 65 33 106 50 100 150 200 FY11 FY12 FY13 FY14-16 Subsidiaries debt (US$m)

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Growth Drivers

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Growth Drivers – PLS PS CRAMS

API

 Commissioning of new plant for sartans  Additional sales from commercialized 19 products and introduction of new

products, which are going off-patent such as valsartan, Irbesartan, Donepezil etc

 Total DMFs filed - 37  Products to be commercialised – 10 and Products in R&D pipeline – 19

PPES

 Targeting 20%

increase in capacity of pyridines and Picolines through process improvement and debottlenecking - to be completed by June 2010

 Working towards introducing 8 Advanced Intermediates in next two years  3 new contracts under advance stage of discussions with large innovator

companies in Exclusive S ynthesis & Contract Manufacturing business

 Pipeline of 11 products (3 in Phase II and 8 in Phase III)  S

igned contracts for FY11: US $ 77m – equivalent to 38%

  • f FY10 sales

CMO – Sterile & Non Sterile Products

 Expansion of clinical to commercial development to filling capability  Pipeline of 48 products (26 in Phase I, 12 in Phase II and 10 in Phase III)  S

igned contracts for FY11: US $ 102m – equivalent to 72%

  • f

FY10 sales

DDDS

 Full benefit of signed contracts to be realised from FY 2011 onwards  Lilly contract extension for 5 years, Endo Oncology deal expanded and AZ

portfolio deal consistently growing

 Excellent traction of business for functional aspects like chemistry, biology

from pharma and biotec companies due to improved market conditions

 Re-organisation of businesses by global pharma companies  S

igned contracts for FY11: US $ 43m – equivalent to 80%

  • f FY10 sales

Order-book for FY11

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Growth Drivers – PLS PS Others

Nutrition ingredients

 S

etting up of Niacinamide plant in S EZ to convert the available Beta picoline and 3 CP to high value added products

 Developing new products

Lifescience chemicals

 Targeting increase in capacity by more than 50%

  • ver next two years by

plant modification and de-bottlenecking to meet the increase in demand

Pharmaceutical Products

Radio Pharmaceuticals

 Planning launch of new products such as RubyFill in 2012, generic

  • f Magnevist 2013 and MolyFill in 2015

Generics

 25 products filed and expecting approval

Allergenic Extracts

 Working towards development and launch in North America of a new

‘ sublingual delivery system’ by 2014-15

 S

igned contracts for FY11: US $ 23m – equivalent to 28%

  • f FY10 sales

Order-book for FY11

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Growth Drivers - APP

Agri Products

 Full capacity utilization of 420,000 MTPA of S

ingle S uper Phosphate (S S P)

Performance Polymers

Food Polymers

 Targeting increase in capacity by 120%

from current level of 5200 MTPA

 Contracts for selling more than 50%

  • f increased production already in place

Latex

 Full capacity utilization of 14000 MTPA and debottlenecking to further increase the capacity

Consumer Products

 Targeting increase in distribution channel reach by 15%

every year

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Key Highlights

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Highlights

One stop-shop offering for pharmaceutical & life science industry

Largest CRAMS player in India, with total orderbook of ~ US$1 bn

Competitive advantages leading to global leadership

Global pharma & Life science customer relationships leading to sustained growth

Multi-location facilities to meet global customer needs

Diversified customer base ensures low customer concentration

Strongly positioned to benefit from global outsourcing due to synergistic & vertical integration

Backed by reputed founders; Managed by committed professionals & global management team

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Thank You