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Page 1: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Agenda

FINANCIAL REVIEW

DIVISIONAL REVIEW AND PROSPECTS

GROUP PROSPECTS

APPENDIX

1

INTRODUCTION

CONSOLIDATED INTERIM RESULTS for period ended 30 June 2011

Page 2: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

INTRODUCTION

2

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Shared Services:

Logistics, Finance, Corporate Affairs, Corporate Marketing, HR, IT & Legal

Public Private

Partnership through The

Biovac Institute to supply

vaccines

Litha Vaccines provides

adult vaccines

Supplier of medical

devices, equipment and

single use medical

consumables to private

& public sectors

Sells, markets and

distributes pharma-

ceutical, generic, OTC

& ancillary medicines

Pharmafrica and Goldex

provide platform

A diversified healthcare business providing services, products and solutions

to public and private hospitals and government healthcare programmes in

Southern Africa – creation dating back to 1992

Litha Healthcare Group

3

Page 4: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

LITHA MEDICAL

PHARMAFRICA

52.5%

100%

77.5%* 100%

100%

LITHA BIOTECH LITHA PHARMA

Litha Healthcare Group Legal Structure

LITHA HEALTHCARE GROUP

12.5%

35%

DST** THROUGH

CAPE BIOTECH

SA GOVERNMENT

THROUGH DoH

100%

BIOVAC CONSORTIUM

THE BIOVAC INSTITUTE

4

GOLDEX

100%

* Increased to 85% effective 1 July 2011

** Dept. of Science and Technology

Page 5: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Context to results

Acquisition of remaining 49% of Litha (LHH)* effective 1 January 2011

- R177 million - 60% shares (48 million shares) and 40% cash

100% consolidation of LHH and Pharmafrica for full 6 months

6 months to June 2010, LHH and Pharmafrica only consolidated for two

months and LHG** owned 51% of LHH

Increased stake in The Biovac Consortium from 62.5% to 77.5%,

effective1 January 2011

Acquisition of Goldex Healthcare, effective 1 May 2011

* Litha Healthcare Holdings ** Litha Healthcare Group Limited 5

Page 6: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Summary of results

June

2011

%

Change

June

2010

Dec 2010

Turnover (R000) 888 983 116% 412 060 1 254 873

Operating profit (Rm) 79 364 88% 42 299 122 275

Operating margin (%) 8.9% 10.3% 9.7%

EPS (cps) 11.8 57% 7.5 16.6

HEPS (cps) 11.8 26% 9.4 18.1

Weighted avg no. of

Shares 372 198 148 232 681 697 279 582 073

6

Page 7: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

FINANCIAL REVIEW

7

Page 8: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

R (000) June

2011

%

Change

June

2010

Dec 2010

Turnover 888 983 116% 412 060 1 254 873

Statement of Comprehensive Income

Biotechnology 645 817 73%

Medical 192 175 22%

Pharma 50 991 5%

8

Page 9: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

R (000) June

2011

%

Change

June

2010

Dec 2010

Turnover 888 983 116% 412 060 1 254 873

Operating profit 79 364 88% 42 299 122 275

Biotechnology* and Cold Chain Logistics 22 633 25%

Medical 58 098 64%

Pharma 10 214 11%

Head office (11 581)

Statement of Comprehensive Income

9 * Includes The Biovac Institute (TBI) - shareholding 40.7%, effective 1 January 2011

Page 10: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

R (000) June

2011

%

Change

June

2010

Dec 2010

Turnover 888 983 116% 412 060 1 254 873

Operating profit 79 364 88% 42 299 122 275

Operating margin 8.9% 10.3% 9.7%

• Change in product mix from higher-margin medical devices to a broader

product basket consisting of both higher and lower margin products.

• Foreign exchange losses on revaluation of creditors and outstanding

FECs of R11.2 million incurred in current year, of which R10 million

incurred in TBI

Statement of Comprehensive Income

10

Page 11: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

June 2011

June 2010 Dec 2010

Core

Dec 2010

Biotechnology 3.5% 7.7% 6.0% 4.1%

Medical 30.2% 20.5% 23.2% 24.4%

Pharmaceutical 20.0% 25.6% 20.9% 20.9%

Total 8.9% 10.3% 9.7% 9.8%

Operating Margin Analysis

11

• The Biotech division, which contributed 25% to net operating profit, has

a low margin as it is currently purely an importer and distributor.

However, as manufacturing commences in 2013 at TBI, margin is

expected to gradually increase from 2014 onwards.

Page 12: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

R (000) June

2011

%

Change

June

2010

December

2010

Turnover 888 983 116% 412 060 1 254 873

Operating profit 79 364 88% 42 299 122 275

Operating margin 8.9% 10.3% 9.7%

Non-op. interest expense (7 054) (1 111) (6 912)

Effective tax rate 30% 30% 29%

Profit after tax 50 374 76% 28 652 81 358

Profit attrib. to shareholders 43 790 150% 17 548 46 360

EPS (cents per share) 11.8 57% 7.5 16.6

HEPS (cents per share) 11.8 26% 9.4 18.1

Weighted average

number of shares 372 198 148 232 681 697 279 582 073

Statement of Comprehensive Income

12

Page 13: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Summarised Statement of Cash Flows

Cash portion of LHH 49% acquisition (70 800)

Cash paid to Goldex vendors (33 000)

Cash paid for other acquisitions of minority

shareholders

( 8 912)

Net cash effect of movement in assets and

intangibles

(18 202)

Total (130 914)

(R000) June 2011 June 2010

Cash generated by operating activities 94 558 (28 076)

Cash flows from operating activities 68 419 (35 593)

Cash flows from investing activities (130 914) (134 963)

13

Page 14: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Summarised Statement of Cash Flows

(R000) June 2011 June 2010

Cash generated by operating activities 94 558 (28 076)

Cash flows from operating activities 68 419 (35 593)

Cash flows from investing activities (130 914) (134 963)

Cash flows from financing activities 67 506 94 323

Cash raised from term loan 80 000

Settlement of Pharmafrica vendor

liability

(21 425)

Settlement of existing term loan (25 096)

Draw down on IDC loan 34 027

Total 67 506 14

Page 15: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Summarised Statement of Cash Flows

(R000) June 2011 June 2010

Cash generated by operating activities 94 558 (28 076)

Cash flows from operating activities 68 419 (35 593)

Cash flows from investing activities (130 914) (134 963)

Cash flows from financing activities 67 506 94 323

Net increase in cash 5 011 (76 233)

Cash acquired on acquisition of

subsidiaries (320) 173 641

Cash at beginning of period 231 513 8 363

Cash at end of period 236 204 105 771

15

Page 16: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Summarised statement of financial position

Assets (R000) June 2011 December

2010

Non current 429 065 394 643

Property, plant and equipment 85 098 79 134

Biotechnology 78 203 92%

Medical 5 473 6%

Pharmaceutical 1 422 2%

• As a PPP, The Biovac Institute operates as stand alone company

- Secured funding for capex requirements over the next four years

(R100m) – 75% sourced from IDC

16

Page 17: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Assets (R000) June 2011 December 2010

Non current 429 065 394 643

Property, plant and equipment 85 098 79 134

Goodwill and intangibles 325 333 294 925

Other non current assets 18 634 20 584

• Purchase price allocation on Goldex Healthcare not yet

complete

Opening balance 294 925

Goodwill on acquisition of Goldex 24 886

Goldex intangible assets 5 522

Closing balance 325 333

Summarised statement of financial position

17

Page 18: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Assets (R000) June 2011 December 2010

Non current 429 065 394 643

Property, plant and equipment 85 098 79 134

Goodwill and intangibles 325 333 294 925

Other non current assets 18 634 20 584

Current 1 088 138 821 047

Inventory 337 481 233 795

Trade receivables 484 288 352 079

Other current assets 10 143 2 955

Cash and cash equivalents 256 226 232 218

Non-current assets held for sale 2 815 2 815

Total Assets 1 520 018 1 218 505

Equity and Liabilities

Summarised statement of financial position

Opening balance 197 447

Acquisition of controlling interest in subsidiary 103 453

Share issue 1 500

Closing balance 302 400 18

Equity 465 010 502 256

Share Capital and Premium 302 400 197 447

Reserves attributable to holders of the Parent 98 487 123 756

Non controlling interest 64 123 181 053

Page 19: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

June 2011

(R000)

2010

(R000)

Days

June 2011

Days

2010

Inventory 337 481 233 795 89 69

Debtors 484 288 352 079 99 79

Creditors (800 265) (559 787) (213) (166)

Net working capital

invested 21 504 26 087 (25) (18)

• Large quantities of back orders on EPI vaccines which were supplied

towards end of period affected working capital cycle

• Stock levels have normalised post period end

Working Capital

19

Page 20: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Assets (R000) June 2011 December 2010

Non current 429 065 394 643

Property, plant and equipment 85 098 79 134

Goodwill and intangibles 325 333 294 925

Other non current assets 18 634 20 584

Current 1 088 138 821 047

Inventory 337 481 233 795

Trade receivables 484 288 352 079

Other current assets 10 143 2 955

Cash and cash equivalents 256 226 232 218

Non-current assets held for sale 2 815 2 815

Total Assets 1 520 018 1 218 505

Equity and Liabilities

Equity 465 010 502 256

Reserves attributable to holders of the Parent 400 887 321 203

Non controlling interest 64 123 181 053

Non current liabilities 182 546 102 723

Other financial liabilities 162 204 80 901

Deferred taxation liability 20 342 21 822

Current liabilities 872 462 613 526

Accounts payable and provisions 800 265 558 787

Other current liabilities 72 197 54 739

Total equity and liabilities 1 520 018 1 218 505

Summarised statement of financial position

Page 21: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Gearing

June 2011

(Excl TBI)

June 2010

(Incl TBI)

December

2010

(Excl TBI)

Interest bearing debt

(R000) 109 783 180 790 89 870

Equity (R000) 359 901 465 010 408 501

% 31% 39% 22%

• Gearing is calculated excluding The Biovac Institute as it is ring fenced and

operates as a stand alone company

21 Note: Debt equity ratio is calculated using interest bearing debt

Page 22: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

DIVISIONAL REVIEW & PROSPECTS

22

Page 23: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

LITHA BIOTECH

23

Page 24: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Litha Biotech: Business overview

Litha Biotech

business units

• The Biovac Institute: Manufacturing facility (in

progress) in Cape Town.

• Litha Vaccines and Litha Medical Logistics: Cold

storage and distribution facility in Johannesburg

Principals

(agencies)

• Sanofi Pasteur GSK

• Heber Biotec Pfizer

• Novartis

• SSI (Staten Serum Institute)

Distribution • South Africa Botswana

• Namibia Mozambique

• Swaziland

Key vaccines

coverage

• Tuberculosis, Polio, Tetanus, Hepatitis B, Pertussis,

Measles, Diphtheria, Pneumonia, Rotavirus, Haemophilus

Influenza b

Top customer

profile • Department of Health, private immunisation clinics

24

Page 25: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Strategy

Manufacturing facility at The Biovac Institute to be operational by 2013

• Manufacture affordable, quality vaccines

• Product to ultimately be World Health Organisation pre-qualified

• Attract and improve skills

Partnering with NGOs for vaccine development in Africa and cold chain

distribution in the region

Securing technology transfers with major suppliers

Uninterrupted paediatric supply of vaccines

Ongoing increase of effective shareholding in The Biovac Institute

Litha Biotech: Strategy

25

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26

Focus remains on manufacture readiness in 2013

• Development programme towards manufacturing on track

- The Biovac Institute investment currently dragging down margin - to be rectified gradually post 2013 manufacture

• LHG increased its effective shareholding in The Biovac Institute from 33% to 41%

- Meets strategy of increasing stake and becoming a meaningful vaccine manufacturer

• Stock turn lumpy in this business

- Temporary stock build-up rectified post period end

• Focus on capacity utilisation of facility until manufacture

- Geared for potential technology transfers, R&D pipeline projects

R(000)

June

2011

June

2010

Dec

2010

Revenue* 645 817 243 976 842 751

Operating Profit 22 633 18 721 50 446

Operating Margin 3.5% 7.7% 6.0%

Litha Biotech: Overview and prospects

* Excludes inter-company sales and interest received

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The Biovac Institute

27

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Manufacturing Facility

28

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LITHA MEDICAL

29

Page 30: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Litha Medical: Business overview

Litha Medical

business units • Filterworks, Litha Critical Care, Manta Medical,

Litha Cardiac, ICU Medical S.A, Earth Medical, Manta

Forensic

Principals

(agencies) • 44

Key

therapeutic

focus

• Anaesthesiology, Cardiology, Infection control,

Orthopaedics, ICU and Theatre, Women’s Health/Urology,

Forensics, Wound care, Infusion therapy, Gynaecology

and Obstetrics

Top customer

profile • Life Healthcare, Netcare, MediClinic

Distribution • South Africa, Botswana & Namibia

30

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Strategy

Delivery of cost-effective products and solutions to public and private

sectors

Exploit government and export opportunities and expand existing,

local assembly and packaging to address price competitiveness

Drive cross-selling within group to optimise product offering

Litha Medical: Strategy

31

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Litha Medical: Overview and prospects

32

• Operating margins improved due to more favourable mix, despite continued

pressure on pricing from hospital groups

• Careful management of operating costs

• Principals (agencies) secured in 2010, bedded down

• Continued focus on adding more agencies and therapeutic areas as well as

expanding footprint in Africa

* Excludes inter-company sales and interest received

R(000)

June

2011

June

2010

Dec 2010

Revenue* 192 175 157 295 332 922

Operating Profit 58 098 32 233 77 135

Operating Margin 30% 20% 23%

Exceptional performance due to unusual demand in Forensic BU

Page 33: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

LITHA PHARMA

33

Page 34: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Litha Pharma: Business overview

Business units • Branded/detailing doctor business unit - Pharmafrica

• Generic/pharmacy/dispensing doctor business unit –

Goldex Healthcare

Principals

(agencies)

• 10

Distribution • South Africa, Botswana & Namibia

Key product

categories • Cold and Flu preparations, NSAIDS/Analgesics,

Cardiovascular agents, Anti-histamines, Ophthalmic agents,

Anti-microbials, Anti-psychotics, Anti-depressants

Top customer

profile • Prescribing GPs and specialists, dispensing doctors,

corporate and independent pharmacies

34

Page 35: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Strategy

Product expansion to commodity and niche branded generic products, new

technologies and novel drug delivery systems from pipeline through Cpoint Inc.

Identifying key acquisitions which will grow product portfolios as well as

agreements with international suppliers of generic pharmaceuticals

Expand retail pharmacy footprint for further growth in prescription and OTC

market

Litha Pharma: Strategy

35

Page 36: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

R(000)

June

2011

June

2010

Dec 2010

Revenue* 50 991 10 789 79 200

Operating Profit 10 214 2 759 16 567

Operating Margin 20% 26% 21%

Litha Pharma: Overview and prospects

36 * Excludes inter-company sales and interest received

Focus primarily on improving business scale

• Integration of Pharmafrica and Goldex Healthcare

• Two business units created to optimise market penetration -

branded/detailing doctor & generic/dispensing/pharmacy doctor

• Partnership with Cpoint Inc. continues to expand pharma pipeline

• Agreements with Indian and European manufacturers will allow registration of

50 products during the next 12 months for commercial rollout in 2014

• Product rationalisation, improved listings and implementing of operational

systems

• Products for submission to MCC by end of 2012: 102

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CONCLUSION

37

Page 38: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Conclusion

Litha well positioned to:

- Benefit from increased government spend (NHI & revitalisation of public

healthcare)

- Grow market share in the private sector through quality products and

services

Key management focus areas:

- Increase scale to compete effectively in healthcare market

- Skills development and talent acquisition

- Cross-selling opportunities within the group

- Improve cost savings and reduce duplication

- Rolling out shared services strategy

- Increase footprint in Africa

- Improve BBBEE rating

Eight business units moving into one facility by Q1 2012 (Medical and

Pharma)

38

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Contact details

39

Litha Healthcare Group Limited Tel: +27 11 516 1700

Fax: +27 11 516 1745

Manta Place, Turnberry Office Park,

48 Grosvenor Road, Bryanston,

Sandton, Gauteng, South Africa

P O Box 68837, Bryanston, 2021,

South Africa

Group CEO: Selwyn Kahanovitz

Tel : +27 11 516 1700

Fax : +27 11 516 1745

Email: [email protected]

Group Deputy CEO: Morena Makhoana

Tel: +27 21 514 5000

Fax: + 27 086 518 1127

Email: [email protected]

Group CFO: Martin Kahanovitz

Tel : +27 11 516 1700

Fax : +27 11 516 1745

Email : [email protected]

Website: www.lithahealthcare.co.za

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This presentation contains forward-looking statements about the company’s operations

and financial conditions. They are based on Litha Healthcare Group Limited’s best

estimates and information at the time of writing. They are nonetheless subject to

significant uncertainties and contingencies many of which are beyond the control of the

company. Unanticipated events will occur and actual future events may differ materially

from current expectations due to new business opportunities, changes in priorities by the

company as well as other factors. Any of these factors may materially affect the

company’s future business activities and its ongoing financial results.

DISCLAIMER

40

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APPENDIX

41

Page 42: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

LITHA Group fact file

Established in 1992

Headquartered in Johannesburg,

South Africa

Over 348 employees nationally

374 million shares in issue

Three divisions namely, Litha Biotech,

Litha Medical & Litha Pharma

Sound, highly experienced

management team

Page 43: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Litha’s Executive Management

Selwyn Kahanovitz

Group CEO

Vast experience in medical and pharmaceutical industry. Founded the

Group in the early 1990’s and has been the CEO of Litha Healthcare

Holdings and The Biovac Institute since inception (28 years experience)

Morena Makhoana

Group Deputy CEO

Qualified doctor with experience in the Government Health system.

Executive Committee member of Developing Country Manufacturers

Network (DCVMN) . CEO of The Biovac Institute – Litha Healthcare

Group’s largest investment (8 years experience)

Martin Kahanovitz

Group CFO

Highly qualified and experienced Financial Director of the group. Building

the administration and financial infrastructure from inception to cater for the

rapid development of the group (13 years experience)

Grant Parker

Group COO

An entrepreneur and a qualified Pharmacist. The newly appointed Group

Chief Operating Officer and currently the Divisional CEO of Litha Medical.

He is also the Managing Director of Filterworks (Pty) Ltd, formerly

Managing Director of the Life Sciences Division of Pall SA

43

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Litha’s Executive Team

Mpumulelo Sowazi

Corporate Affairs

Executive

Over 25

years

experienc

e

Served in the legal departments of a number of large South

African corporations including Anglovaal and IBM. Responsible

for corporate affairs and stakeholder management

Sipho Mdleleni

HR Executive

17 years

experienc

e

Group Human Resources head responsible for the development

of HR systems and implementation for the group

Barry Budler

Finance Executive

Head of Group Financial Reporting CA(SA), formerly Group

Financial Controller at two listed companies and Audit Manager

at Deloitte

44

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Assets (R000) June 2011 December 2010

Non current 429 065 394 643

Property, plant and equipment 85 098 79 134

Goodwill and intangibles 325 333 294 925

Other non current assets 18 634 20 584

Current 1 088 138 821 047

Inventory 337 481 233 795

Trade receivables 484 288 352 079

Other current assets 10 143 2 955

Cash and cash equivalents 256 226 232 218

Non-current assets held for sale 2 815 2 815

Total Assets 1 520 018 1 218 505

Equity and Liabilities

Equity 465 010 502 256

Reserves attributable to holders of the Parent 400 887 321 203

Non controlling interest 64 123 181 053

Non current liabilities 182 546 102 723

Other financial liabilities 162 204 80 901

Deferred taxation liability 20 342 21 822

Current liabilities 872 462 613 526

Accounts payable and provisions 800 265 558 787

Other current liabilities 72 197 54 739

Total equity and liabilities 1 520 018 1 218 505

Summarised statement of financial position

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Litha’s Evolution

46

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Litha Biotech

90 106 135 155 164 235

669

1,000

0

200

400

600

800

1000

1200

2003 2004 2005 2006 2007 2008 2009 2010

Growth in EPI Paediatric Vaccine spend

Rm

Source: Litha Healthcare Group 47

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Litha Medical

0.80 0.84 0.88 0.95

1.03 1.11

1.20

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2006 2007 2008 2009 2010 2011 2012

Market Metrics:

Medical Devices Market Growth Forecast Rm 7.0% CAGR

Source: Frost 2007 48

Page 49: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Litha Medical: Market Size and Growth

49

SA medical equipment & supplies market estimated at US$1,035bn in 2010

Ranks among top 30 biggest markets in the world, per capita spending low

at just ± US$21 (due population size)

Very little medical devices produced in SA

• 91% supplied by imports (estimated)

Summary of the SA Medical Device Market, 2010

Market size US$ 1,035 billion

As % of total health expenditure 4.1%

As % of GDP 0.4%

As % of world market 0.4%

Supplied by imports 90.8%

Growth rate 7.1%

Per capita US$21

Source: Espicom estimates

Page 50: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Litha Medical: Therapeutic Areas

Source: Litha Healthcare Group

24

38

15

14 5 2 2

Infection control

Infusion therapy

Anaesthesia

Orthopaedics

Wound therapy

Incontinence Forensics

Therapeutic Products

50

Page 51: GROUP PROSPECTS APPENDIX - ShareDataCash flows from operating activities 68 419 (35 593) Cash flows from investing activities (130 914) (134 963) Cash flows from financing activities

Value – MAT* June 2010 Value – MAT* July 2011

Litha Pharma: Market Size and Growth

* MAT = Moving Annual Total (last 12 month’s)

** ‘Other’ = unscheduled medicines sold through pharmacy

Therapeutic Products

TOTAL Market growth: 10%

Non-generic

Generic

Other **

13.433 55.6%

7.379 30.5%

3.350 13.9%

(+5.7%) (+15.7%)

(+16%)

Source: TPM 12 month MAT June 2010

& July 2011 51

12.702 58%

6.377 29%

2.887 13%

(+5.2%)

(+9.5%)

(+14.3%)


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