Slides
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NATCO Pharma Limited Investment Presentation – Proposed Investment
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Transaction Summary Target Geography Proposed Shareholding SOUTH AFRICA The Bidvest Group Limited 64.25% NATCO Pharma Limited 35.75% Price per share Cost to NATCO Transaction Cost Revenue in US$ Mn EV/EBITDA Revenue Multiple ZAR 75 US$ 4.271 ZAR 4 Bn US$ 226 Mn1 ₹ 2,000 Cr ~US$ 10 Mn 484 507 536 262 FY22 FY23 FY24 H1FY25 7.83 1.12 1:Exchange Rate : 1 USD = 17.54 ZAR, 1 USD = ₹86.39 All other US$ conversions are at 1 USD = 18 ZAR Multiples are at FY 24 figures
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Adcock Ingram - Profile Established in 1890 as a pharmacy in Krugersdorp, South Africa and evolved to be one of the biggest pharmaceutical and healthcare companies on the African continent Second-largest South African based pharmaceutical company in terms of private market share Engages in the manufacturing, selling & marketing, and distribution of healthcare products to private and public sectors in Southern Africa Southern Africa: Conducts business through four commercial divisions- Prescription, OTC, Hospital & Consumer Owns 3 manufacturing facilities near Johannesburg, South Africa and 49% of an Indian JV that runs 2 manufacturing facilities in India. Source: Adcock Ingram Annual Report FY 24 and Adcock Ingram Website
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Adcock Ingram - Four Commercial Divisions PRESCRIPTION • Focuses on offering a broad range of medicines in targeted therapeutic areas for patients consulting healthcare professionals OVER THE COUNTER (OTC) • Focuses on the manufacturing, marketing and selling of medication primarily sold in retail pharmacies without the requirement for a prescription HOSPITAL • Manufacturers and supplies hospital and critical care products in Southern Africa CONSUMER • Focuses on marketing, selling and distribution of healthcare, personal care, and homecare brands primarily to the consumer Source: Adcock Ingram Annual Report FY 24
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Adcock Ingram - Top Ten Products Panado Consumer Analgesic Epi-max Consumer Emollient Allergex OTC Anti-Allergic Adco-dol OTC Pain relief Bioplus Consumer Multi-Vit Energy Booster Corenza C OTC Cold & Flu IV Solutions Viaflex Hospital NaCl solution Dianeal Solution Hospital Dialysis solution Synaleve Prescription Pain relief Citro-Soda OTC Antacid
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Adcock Ingram - Financial Performance INCOME STATEMENT (Financial year July – June) US$ Mn FY22 FY23 FY24 H1- FY25 (Dec’24) Revenue 484 507 536 262 EBITDA 74 81 78 38 EBITDA% 15% 16% 15% 14% Net profit 44 50 45 22 Net profit% 9% 10% 8% 8% NATCO will consolidate 35.75% of Net Profit of Adcock Ingram proportionate to its shareholding Source: Adcock Ingram Audited AFS FY 22-25 Exchange Rate : 1 USD = 18 ZAR
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Adcock Ingram - Transaction Rationale Adcock Ingram is the 2nd largest pharmaceutical company in South Africa with an attractive portfolio of well-recognized brands with strong market position Adcock Ingram is the only pharmaceutical company in South Africa with coverage of all market segments - prescription, OTC, consumer and critical care + Multiple value creation opportunities from a combination with NATCO NATCO has a strategic focus on global presence including EMs and has already established front-ends in USA, Canada, Brazil, Philippines, Singapore, Australia, Indonesia and actively operating in MENA, SE Asia, Latin America South Africa is one of the largest emerging markets globally and a gateway to African Continent, has language familiarity and a strong regulatory framework ✓ ✓ ✓ ✓
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Adcock Ingram - Potential Synergies ✓Marketing & distribution of NATCO's products (current and future) in SA through Adcock ✓Introduction of affordable and innovative pharmaceutical products in African markets – create a market leading pharmaceutical franchise in SA followed by pan-Africa expansion ✓Bringing cost efficiencies through NATCO’s manufacturing and sourcing Cost synergy Revenue synergy/ corporate brand building Revenue synergy ✓Leveraging NATCO's R&D team strength for cross-pollination of ideas across Africa Cost synergy Broad Contours Type
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Corporate Profile – Bidvest Group Limited – The other shareholder (1) Source: Bidvest group website (2) Source: Capital IQ Pro (Exchange rate of 1 USD = 18 ZAR). Founded in 1988 and listed on the JSE, the Bidvest Group Limited is a leading business-to- business services, trading, and distribution Group with a blended portfolio of defensive and cyclical businesses that are diversified, essential and asset-light Bidvest has over 250 individual businesses and employs more than 130,000 people in South Africa, the United Kingdom, Republic of Ireland, Spain, Australia, Singapore, Canada and United States1 Reported a consolidated revenue of US$ 6.8 Bn for the 2024 financial year Bidvest’s strategy is to achieve scale and growth by maintaining a strong balance sheet, exercising financial discipline through considered capital allocation, and pursuing organic and acquisitive growth opportunities in the Group’s identified areas of focus.
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THANK YOU https://twitter.com/pharma_natco https://www.linkedin.com/company/natcopharma Website: www.natcopharma.com Contact Information ir@natcopharma.co.in