Corporate Presentation - Jubilant Bhartia Group

Corporate Presentation00

22Presentation OutlineJubilant Bhartia Group - HighlightsJubilant Life Sciences – OverviewKey FinancialsIndustry OverviewOur BusinessCompetitive AdvantageCorporate SustainabilityCorporate Social ResponsibilityVision Values & Promise

Jubilant Bhartia Group - SnapshotPharmaceuticals &Life SciencesAgri & PolymersAnd RetailFood Oil & Gas ServicesAutoIntegrated OutsourcingSolutions Provider forPharmaceutical & Life SciencesIndustryIndia’s largest CRAMs CompanyRevenues FY2012:US $ 892 Mn (Rs.4,278 Crs)Listed on NSE & BSE,IndiaLeading player in AgriProducts in North India,Caters to niche markets inPerformance Polymersglobally2 nd largest retailer inBengaluru operating 5hypermarket-cum-mallsRevenue FY 2012:US $ 207 Mn (Rs. 996 Crs)Listed on NSE & BSE,IndiaA master franchise ofDomino’s Pizza for India,Bangladesh, Nepal & SriLanka and Dunkin’ Donutsfor India; Domino’s haspresence in 110 citiesthrough over 500 stores inIndia4 Dunkin’ Donuts storesopened since May 2012, inDelhi NCRRevenues FY 2012:US$ 212 Mn (Rs. 1,018 Crs)Listed on NSE & BSE,IndiaEngaged in the upstream oiland gas exploration andproduction sectorPortfolio of 9 blocks inIndiaProducing Asset – KharsangDevelopment Asset –KG blockRevenues FY 2012:US$ 19.06 Mn (Rs. 92 Crs)Listed in AIM market,LondonAerospaceSole authorized IndependentRepresentative of BellHelicopter in India for sales,marketing and customersupport.Also represent otherinternational aerospacecompanies.Oil & Gas Services• Consultant to Transoceanoffshoredrilling company• Manning and Marketingservices for TidewaterMarine International etcExclusive dealership ofAudi make cars inKarnataka andTamil NaduService center for Audicars in Bengaluruand ChennaiCustom Paint and Bodyworkshop in Bengaluru• Jubilant Bhartia Group : Valued around US $ 3Bn• Employs around 24,000 people across the globe with ~ 1500 in North America• Jubilant Bhartia Foundation, a not for profit organisation is a social arm of Jubilant Bhartia Group• The foundation is engaged in community development work focusing on primary education, basichealthcare, skill development through vocational training for youth & women• Aims at long term sustainable social intervention by empowering communities through 4P model(Public-Private-People-Partnership)

44Jubilant Life Sciences – OverviewIntegratedPharmaceutical&Life SciencesCompany‘Partner ofChoice’ to GlobalLife SciencesCompanies• Providing Pharmaceutical & Life Sciencesproducts and services across thepharmaceutical value chain• Largest Custom Research & Manufacturingservice (CRAMS) Company and leading DrugDiscovery & Development Solution providerout of India• Ranked No. 6 amongst top 10 Global Pharmaoutsourcing players as per UNCTAD* WorldInvestment Report 2011• Reputed and High Quality relationships withTop 20 Pharma companies, and 7 out of thetop 10 Agrochemical companies globally• Part of Jubilant Bhartia Group, with foundersshareholding at 49%**Rs. 2175Crores51%Net Revenue FY 2012Rs. 4,278 CroresPharmaceuticalsRs. 2103Crores49%Life Science Ingredients* United Nations Conference on Trade And Development** June 2012

Global Presence• Present in India, North America, Europe and China• International sales in more than 75 countries• Employs over 6300 people including 1300+ in R&D• Corporate Office and R&D Centres in Noida, India• Discovery Centre in Bangalore, India• 7 manufacturing facilities in India and 3 in North AmericaKirkland, Quebec, CanadaUSFDA approved facility for contractmanufacturing Non Sterile products andRadiopharmaceuticalsSpokane, Washington, USAUSFDA approved facility for contractmanufacturing of Sterile injectable andAllergy Therapy ProductsOttawa, CanadaDDDS officeMerelbeke , BelgiumRegulatory & Generic MarketingShanghai, ChinaMarketing OfficeDusseldorf, GermanyJubilant Clinsys, Europe officeNoida, Uttar PradeshCorporate Office &R&D CentresRoorkee, UttarakhandUKMHRA approved facility forgenericsHorsham, PennsylvaniaJubilant Cadista - Sales &Marketing Head OfficeGajraula, Uttar PradeshLargest integrated pyridine & itsderivatives facility in the worldMalvern, Pennsylvania, USADDDS OfficeSalisbury, Maryland, USAUSFDA approved facility forgenerics (Tablets & Capsules)Corporate OfficeManufacturing FacilitiesR&D FacilitiesInternational SubsidiariesIndian SubsidiariesBranch OfficesRaleigh North Carolina, USAClinical Research Centre andJubilant Life Sciences Marketing OfficeBedminster, New Jersey, USAClinical Research Centre andJubilant Life Sciences -Marketing OfficeSamlaya, GujaratAnimal Nutrition ProductsBharuch, GujaratSEZ for Vitamins and LifeScience derivativesAmbarnath, MaharashtraExclusive Synthesis - PyridinederivativesNira, MaharashtraLife Sciences ChemicalsPuneHyderabadChennaiLucknowBengaluru, KarnatakaState-of-art Discovery CentreNanjangud, KarnatakaUSFDA, AFSSAPS & PDMA approval APImanufacturing facilityNote: This illustration is not exhaustive. This illustration is not to scale5

US$ MnUS$ Mn66Key FinancialsREVENUEEBITDA10003005002001001061241751271860FY08 FY09 FY10 FY11 FY120FY08 FY09 FY10 FY11 FY12For FY 2012: 1 USD = 47.95 INR || For FY 2011: 1 USD=44.60 || For previous years : 1 USD=46.53

Industry Overview77

88Industry Trends Support Shift Towards OutsourcingDeclining growth in global Pharmaceutical marketSource: IMS Health Market Prognosis 2010Global Pharmaexperiencing declininggrowth & marginpressure• Spiraling healthcare costs trigger Governmental pressure to reduce product prices• Patent expiry of key innovations resulting in pressures on revenues & margins• Declining R&D productivity leading to reduced pipelineKey Drivers for GlobalCRAMS Industry• Pressure to reduce manufacturing costs and protect margins• Increasing need to develop innovative products faster and at low cost• Changing mindsets towards R&D and Manufacturing outsourcing

99Jubilant- The preferred partner of ChoiceKey challenges faced by global pharmaJubilant’s offeringsEnsuring innovative product pipeline with lowerR&D spendHigh quality and low cost drug discovery anddevelopment services for expanding pipeline ofinnovative productsGovernmental pressure to reduce market pricelevelsProducts from pre-clinical to clinical, intermediateto finished at speedier, high quality & lower costHigh in-house cost of manufacturingContract manufacturing services at substantiallylower cost than their internal cost with highquality and on time deliveriesPatent expiry induced revenue & margin pressuresComplete life cycle management from pre to postpatent expiry of innovative productsJubilant provides a competitive advantage to global pharma & biotech companies

Our Business10

11Business SegmentationNet Revenue - FY2012US $ 892 Mn (Rs. 4,278 Cr)Pharmaceuticals(51%)• Active Pharmaceutical Ingredients (APIs)• Generics• Specialty Pharmaceuticals• Contract Manufacturing• Drug Discovery and Development SolutionsHealth Care – 0.2%Largest CustomResearch andManufacturingServicescompany out of IndiaLife ScienceIngredients(49%)• Proprietary Products & Exclusive Synthesis• Nutritional Ingredients• Life Science ChemicalsGenerating synergiesfrom Integratedoffering

Market positions based on Company analysis & estimates12PharmaceuticalsActive Pharmaceutical Ingredients• Provider of bulk drugs to generic pharmaceuticals companies• Focus on therapeutic segments - CVS, CNS, Gastro-intestinal and anti-infectivesGlobal leadership in APIs - Carbamezepine, Citalopram,Donepezil, Irbesartan, Lamotrigine, Meclizine,Oxcarbazepine and ValsartanGenerics• Provider of high quality finished dosage forms (tablets and capsules) Globally among Top 3 in several Generic Dosage FormsSpecialty Pharmaceuticals• Development, manufacture and marketing of radiopharmaceutical products for diagnostic andtherapeutic use• Major therapeutic and diagnostic extracts for allergy derived from pollens, animals and stinginginsects venomsLeading market share positions in Four therapeutic andimaging Nuclear Medicine products in North AmericaLeading No. 2 Allergy Therapy Company in the USAContract Manufacturing• CMO services for Lyophilized products, liquid fills, biologics, suspensions and WFI / diluent andclinical trial quantities• CMO services for ointment, cream and liquidDrug Discovery & Development Solutions• Providing integrated Drug Discovery and Development Solutions to global pharmaceuticals andbiotech companies• Discovery Research: Target to IND, functional services, medicinal chemistry and scale upsynthesis• 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 conceptLeading pharmaceutical contract manufacturer ofmultiple sterile and non-sterile dosage forms in NorthAmericaLeadership in Integrated Drug Discovery andDevelopment solutions with location across India,Europe and the US.Healthcare• A hub & spoke model to provide affordable high-quality healthcare services in West Bengal,India, plans to set up total of 1000 beds with 165 beds operational currentlyUnique affordable healthcare model12

Life Science IngredientsProprietary Products & Exclusive Synthesis• Custom manufacturer of advanced intermediates, innovator active ingredients & preparatory productsfor global pharma and agrochemical companies• Portfolio comprises Pyridines, Picolines, Amino Pyridines, Cyano Pyridines, Chloro/Bromo/ FluoroPyridines and many other derivatives• Custom manufacturing of Intermediates and NCE’s on Exclusive Synthesis basis• Service offerings include route design, process development & analytical method developmentGlobally No.1 in Pyridines, Betapicolines & 14 other Pyridinederivatives – Fine ChemicalsLife Science Chemicals• Provider of Acetic Anhydride, Acetic Acid and Ethyl Acetate to Life Science and PharmaceuticalindustryGlobally amongst top 10 playersin Ethyl Acetate & AceticAnhydrideNutrition Ingredients/ Vitamins• Leading provider of nutritional ingredients for pharma, human and animal applications• Niacin and Niacinamide (Vitamin B3)• Choline Chloride (Vitamin B4) for Animal Nutrition; Specialty Premixes for poultryGlobally No 2 in Niacin &Niacinamide /Vitamin B3-Nutrition Ingredients13Market positions based on Company analysis & estimates13

14Competitive AdvantageVertical IntegrationCulture of Innovation & Continuous ImprovementHigh Quality Relationships

Vertical Integration15Vertical IntegrationSynergistic IntegrationProprietaryproducts &IntermediatesExclusiveSynthesisCMOFinished ProductsDrug Discovery &DevelopmentSolutionsHigh value derivativesFinished productsSterileSpecialtyPharmaceuticalsIntegrated DrugDevelopment150 products andgrowingCommercialmulti ton quantitiesLiquid / LyopholizationAllergy, radiopharmaceuticalsProj. Mgmt, exec uptoPhase II, POCPyridinesand picolines10 productsAdvanced IntermediatesPhase III –ton quantitiesNon SterileOintment creamand LiquidSpecialty Generics /GenericsDrug DevelopmentPre clinical & ClinicalServicesBasic Chemicals3 productsIntermediatesPhase I & II ingm –kg quantitiesSolid DosageTabs, capsAPI’s / IntermediatesEarly Drug DiscoveryStructural Biology,medicinal chemistry &HTSA uniquely synergistic and vertically integrated portfolio offering competitive advantage

16Innovation & Continuous ImprovementCulture of InnovationContinuous cost improvements• Expertise in development of non-infringingprocesses for APIs and Dosage forms• Strong IPR and Regulatory Affairs• High skill and low cost operation• Large number of process patent applicationsfiled• Three-platform technologies developed fortaste masking, orally disintegrating, anddelayed release• Ability to do specialized formulations anddesign equipments for radiopharmaceuticals• Improvement in efficiency norms• World class supply chain management leadingto reduced working capital• Operational improvement through employeeparticipation• Investment in R&D for new product/processdevelopment• Capacity increase through de-bottleneckingProviding innovative products and economically efficient solutions

17Business Excellence Continuous Improvement Culture & QualityManufacturingexcellenceDesignexcellenceCustomerexcellenceLean management & Six Sigma• Removing process inefficiencies• Addressing process variation• Alignment to customer requirement• Improve plant effectiveness & asset utilisztionthrough Total Productivity ManagementDFSS Design for Six Sigma (DFSS)• Cut Cut in in cycle cycle time time of of product development and andprocess developmentProject Management• Effective time and cost management forcustomer’s new product development projectsCustomer dashboard & forecasting• Analytics for better business decision makingand forecasting accuracyContinuous cost improvements• Improvement in efficiency norms• World class supply chain managementleading to reduced working capital• Operational improvement throughemployee participation• Investment in R&D for newproduct/process development• Capacity increase through debottleneckingStrength in Depth• Master Black Belts 4• Black Belts 35• Green Belts 944• Yellow Belts 1535Black Belts Projects2010 : 106 2011 : 113 2012 : 117Amongst the lowest cost producers globally for most products in our portfolio

18Reputed & high quality relationshipsBusiness strength validated by high quality relationships…AMGENAstraZenecaDuke MedicineEndo PharmaceuticalsForest LaboratoriesGE HealthcareGlaxoSmithKlineJohnson & JohnsonLillyMerckOrionSouthern Research InstituteSyngentaUAB Research FoundationOur Clients• Top 20pharmaceuticalcompanies• 7 out of Top 10agro chemical companiesGuerbetHigh quality customers in over 75 countries globally across all business segments

19Corporate SustainabilityCorporate Social ResponsibilityVision Values & Promise

20Corporate SustainabilityOur Approach to sustainable development focuses on the triple bottom lines ofEconomic, Environment and Social performanceOur Initiatives are directed towardsGreen Jubilant Safe Jubilant Responsible JubilantEnvironmental initiativesfocused on:Energy and waterconservation by use of biofuelsReduction in greenhouse gasemissions and carbonfootprintReduction of fresh waterconsumption and effluenttreatment with minimaldischarge Safety at work prime focusarea International safety standardsare practiced Quarterly assessments andreviews help to draw actionplans for continuousimprovements Committed to serve the society through products andservices while maintaining harmony with theEnvironment Social Interventions directed at empoweringcommunities through :Supporting govt. rural Primary EducationStrengthening Basic Healthcare facilities with afocus on Mother & ChildImproving employability of women & youththrough skill development Partnerships with WHO, UNDP and NGOsCorporate Sustainability Report of Jubilant Life Sciences published every year as per Global ReportingInitiative (GRI) guidelines and it is audited by Ernst & YoungRated A+ for 6 consecutive years by GRI20

21Corporate Social Responsibility at JubilantCorporate social responsibility is the commitment of businesses tocontribute towards inclusive growthMission & Purpose• To contribute towards improving the quality of life of the community around itsmanufacturing locations and develop mutual trust and cordial relationships• To bring more focus to this area of social interventions, Jubilant Bhartia Foundation, a not forprofit company was launched in 2007 to carryout various social initiatives• As a part of the Jubilant Bhartia Group, the foundation focuses on conceptualizing andimplementing the Corporate Social Responsibility initiatives for the group

22CSR SpectrumCSR SpectrumObjectiveActionUltimate GoalNationalandInternational levelManufacturing locations(withcommunity)Fulfilling the role of aresponsible corporatecitizen by contributingtowards inclusive growthWinning the trust ofthe community‣ Recognizing and rewarding IndianSocial entrepreneurs incollaboration with SchwabFoundation‣ Providing scholarships in R&D andtechnology sector‣Philanthropic mode to Communitydevelopment mode‣ Initiatives in line with MDGs( Millennium Development Goals)InclusiveGrowth

Corporate SustainabilityPrimary EducationBasic HealthcareLivelihood GenerationSocial Entrepreneur ofthe Year Award•JBF initiated Muskaan project forstrengthening the GovernmentRural Primary Education system atall manufacturing locations•Recognized by DistrictAdministration•Project extended to 100 schools•Reaching out to 15000 students at8 locations benefitting 53 Schools.•Absenteeism dropped by 70%•Dropout rate has declineddrastically•A sense of pride among villagersfor having Muskaan school in theirvillages•To promote health seekingbehaviour and provideeffective basic healthcare tothe community JBF initiatedHealth Projects at all Locationcatering 4,85,000beneficiaries:•Initiated community basedpilot project ‘SwasthyaPrahari’ in Public- Private-People Partnership (4P Model)•‘Nirog Bachpan’- School healthcheck-up programme•Mobile/Static Clinic at allproject locations for Basicdiagnostic services, Basicmedication and referrals DayCare facilities, DOTS for TB,ICTC for HIV•JBF has structured itslivelihood framework forimproving employability skillsof youth.•The four domains of thetraining programs catering tothe individual needs are:• Technical Literacy• Vocational Training• Life Skill Training• Subsistence Living Training•Vocational Training Centres atall locations.•Capacity to train 2000 youthsevery year for skilldevelopment•Employment: 60% through Selfemployment and placement•The Jubilant BhartiaFoundation and The SchwabFoundation for SocialEntrepreneurshipcollaborating to select India‘s‘Social Entrepreneur of TheYear’•Social Entrepreneurs areinnovators who implementpractical and sustainablesolutions to address challengesin numerous areas includinghealth, education,environment, access totechnology and job creation•Ms. Neelam Chhiber conferredwith the India SocialEntrepreneur of the YearAward, 2011An initiative between CII and Jubilant Bhartia to build capacity while leveraging technologyand innovation to improve productivity and the environmental footprint of agriculture23 23

24Our Vision & ValuesOur Values

Corporate Office1-A, Sector-16ANoida-201301, UP, IndiaEmail:support@jubl.comFor more Info : www.jubl.comThank YouUpdated in Oct 201225