annual results: 31 december 2011 - cipla medpro … · to use south africa as the commercial and...

ANNUAL RESULTS: 31 DECEMBER 2011

2

Agenda

Group overview & outlook

Cipla Medpro in the South African market

Review of operations

Review of results

3

Group overview & outlook

Jerome SmithChief Executive Officer

4

Directorate

Sweet Sensation 67 (Pty) Limited, our empowerment partner,retains its 82 million shares (18,4% shareholding)

Company Secretary

Mark Daly

Nomination Committee Chairperson

Remuneration Committee Chairperson

Audit & Risk Committee Chairperson

Jerome Smith (CEO)

Chris Aucamp (CFO)

Executive directors Non-executive directors

Sbu Luthuli (Chairperson)*

Johan du Preez*

Bongani Caga

Nthabiseng Mokone*

Mpho Mosweu*

Sandile Zungu*

Social, Ethics & Transformation Committee Chairperson

* Independent non-executive

5

Overview

3rd largest pharmaceutical company by value

Revenue up 22% to R1,768 billion (2010: R1,447 billion)

HEPS and EPS up 83% to 80,8 cents (2010: 44,2 cents)

Normalised HEPS and EPS up 11% to 58,3 cents and 58,2 cents respectively (2010: HEPS and EPS - 52,3 cents)

1,7% of issued ordinary shares bought back

EV Index 103 – 3rd fastest growing pharmaceutical company, by value, of the Top 20 SA pharmaceutical companies (IMS, January 2012)

6

Our vision

To use South Africa as the commercial and manufacturing platform for Africa,

to grow our diverse portfolio in the private and state sector,

to become a bigger player in Pharma, OTC, Animal Health,

launch first-to-market pharma products consistently,

become a significant player in biologicals, and

in so doing, create wealth for our investors, customers, employees.

7

Cipla Medpro in the South African market


8

The SA market

Top 10 manufacturers at January 2012

Based on Rands

MONTHJan 2012

Rank

MAT12 months

Rank

MAT1/2012

(Rands)

MAT1/2012Market

share(%)

MAT1/2012

Growth(%)

MAT1/2012

EV(%)

TPM MARKET 0 0 25 536 240 103 100,0 9,8 100,0

ASPEN P/CARE GEN 1 1 1 950 384 178 7,6 7,8 98,2

SANOFI-AVENTIS 2 2 1 923 935 904 7,5 11,2 101,3

CIPLA MEDPRO 3 3 1 233 113 437 4,8 12,8 102,7

ASTRAZENECA 4 4 1 208 519 017 4,7 4,0 94,7

MSD (PTY) LTD* 5 5 1 051 292 310 4,1 14,1 103,9

PFIZER LABS 6 6 972 144 322 3,8 6,1 96,6

ADCO-GENERICS 7 7 957 005 307 3,7 6,0 96,6

ASPEN GSK 8 8 888 754 698 3,5 3,8 94,5

ROCHE ETHICALS 10 9 780 112 614 3,1 10,7 100,7

ADCOCK OTC 12 10 751 185 806 2,9 7,9 98,2

Source: IMS (January 2012)

* Because of Atripla

9

Aspen16,7%

Sanofi9,2%

Pfizer7,4%

Novartis6,8%

Astrazeneca6,7%

Adcock Ingram5,4%Cipla Medpro

5,1%

Merck & Co.5,1%

Roche4,2%

Bayer3,6%

Other29,7%

SEP

Total private market – product split

Adcock Ingram21,1%

Aspen15,0%

Johnson & Johnson6,3%

Novartis4,1%Pfizer

3,9%Sanofi3,9%

Cipla Medpro4,2%

Reckitt Benckiser3,7%

Bayer2,5%

Abbott2,1%

Other33,6%

OTC


10

Cipla Medpro product split

Based on Rands

MAT12 months

Rank

MAT1/2012

(Rands)

MAT1/2011

(Rands)

MAT1/2012

Growth(%)

MAT1/2012

EV(%)

PHARMA 6 920 722 335 811 908 112 13,4 106,1

OTC 5 312 391 102 281 752 353 10,9 94,3

TOTAL 3 1 233 113 437 1 093 660 465 12,8 102,7


11

Generics: A growing market

55,0 55,8 56,3 58,2 58,6

45,0 44,2 43,7 41,8 41,4

0

10

20

30

40

50

60

70

80

90

100

2007 2008 2009 2010 2011

Non-generic products Generic products

(%)

MAT January


12

Total private market 2011 vs 2010

Based on Rands

MAT1/2012(R’m)

MAT1/2011(R’m)

Growth(%)

CIPLA MEDPRO 1 233,1 1 093,7 12,8PHARMA 920,7 811,9 13,4OTC 312,4 281,8 10,9

ASPEN 4 089,3 3 985,4 2,6ASPEN P/CARE GEN 1 950,4 1 809,1 7,8ASPEN GSK 888,8 856,3 3,8ASPEN P/CARE OTC 529,1 487,1 8,6ASPEN P/CARE ETH 315,9 440,8 (28,3)ASPEN INVEST BRAND 246,9 245,2 0,7AHN PHARMA 92,9 94,7 (1,9)ASPEN NUTRITIONALS 63,3 50,4 25,6

ADCOCK INGRAM 2 525,6 2 492,3 1,3ADCO-GENERICS 957,0 902,4 6,0ADCOCK OTC 751,2 696,3 7,9ADCOCK PRESCRIPT 363,6 512,6 (29,1)ADCOCK CRITIC CARE 246,1 195,3 26,0NUTRILIDA 104,7 61,8 69,2ORGANON 53,0 80,5 (34,1)Z-OTHERS AI 35,6 29,2 21,8BIOSWISS 14,5 14,2 1,9


13

Cipla Medpro Script Support

MANUFACTURER

Quarter 12011

(%)

Quarter 22011

(%)

Quarter 32011

(%)

Quarter 42011

(%)

CIPLA MEDPRO 22,74 22,36 22,49 22,11ADCOCK INGRAM HEALTHCARE (PTY) LTD 17,03 16,70 16,23 16,42PHARMACARE LTD T/A ASPEN 14,08 15,40 16,02 15,61PHARMA DYNAMICS 9,38 9,73 9,95 10,77PHARMACIA SA (PTY) LTD 5,03 5,00 5,06 5,16

Source: ImpactRx (December 2011)Top 30 classes measured

Clicks

MANUFACTURER

Quarter 12011

(%)

Quarter 22011

(%)

Quarter 32011

(%)

Quarter 42011

(%)

PHARMACARE LTD T/A ASPEN 23,09 22,97 23,41 22,41CIPLA MEDPRO 19,92 20,48 20,30 20,24ADCOCK INGRAM HEALTHCARE (PTY) LTD 9,59 10,76 11,15 11,85PHARMA DYNAMICS 6,85 7,15 7,47 7,86PHARMACIA SA (PTY) LTD 6,12 6,22 6,30 6,63

Dis-Chem

14

Cipla Medpro Script Support I continued

MANUFACTURER

Quarter 12011

(%)

Quarter 22011

(%)

Quarter 32011

(%)

Quarter 42011

(%)

CIPLA MEDPRO 25,95 25,69 22,16 23,94ADCOCK INGRAM HEALTHCARE (PTY) LTD 17,31 17,72 18,20 18,59PHARMACARE LTD T/A ASPEN 15,15 14,75 16,53 15,78PHARMA DYNAMICS 8,43 9,32 10,53 11,87PHARMACIA SA (PTY) LTD 4,18 4,14 4,29 4,62

Medi-Rite

MANUFACTURER

Quarter 12011

(%)

Quarter 22011

(%)

Quarter 32011

(%)

Quarter 42011

(%)

PHARMACARE LTD T/A ASPEN 26,28 27,03 27,14 26,82CIPLA MEDPRO 22,31 22,10 21,16 21,33ADCOCK INGRAM HEALTHCARE (PTY) LTD 8,83 8,81 9,21 10,40PHARMA DYNAMICS 7,08 6,94 7,10 8,04NOVARTIS SA (PTY) LTD 5,25 4,74 4,52 4,43

Pharmacross


15

Cipla Medpro Script Support I continued

MANUFACTURER

Quarter 12011

(%)

Quarter 22011

(%)

Quarter 32011

(%)

Quarter 42011

(%)

CIPLA MEDPRO 24,26 24,47 24,73 24,60PHARMACARE LTD T/A ASPEN 16,40 16,88 17,07 16,67ADCOCK INGRAM HEALTHCARE (PTY) LTD 11,90 11,98 11,83 12,00PHARMA DYNAMICS 9,15 9,30 9,68 10,23RANBAXY (S.A) (PTY) LTD 4,82 4,92 4,88 4,70

Independent Pharmacy and Dispensing Doctors

MANUFACTURER

Quarter 12011

(%)

Quarter 22011

(%)

Quarter 32011

(%)

Quarter 42011

(%)

CIPLA MEDPRO 23,42 23,55 23,68 23,51PHARMACARE LTD T/A ASPEN 17,11 17,67 17,97 17,48ADCOCK INGRAM HEALTHCARE (PTY) LTD 12,33 12,51 12,42 12,70PHARMA DYNAMICS 8,84 9,03 9,37 9,95RANBAXY (S.A) (PTY) LTD 4,04 4,14 4,13 3,95

Total market


16

Composition of pharma industry

Source: McKinsey & CompanyDecember 2011

17

Number of products registered – December 2011

South AfricaHuman 386

Vet 79

June 2011 December 2011

Human 399

Vet 79

BotswanaHuman 120

Vet nil

Human 146

Vet nil

NamibiaHuman 270

Vet 26

Human 279

Vet 26

18

New product registrations in South Africa

Dossiers registered during past 12 months:

Cipla dossiers pending registration at MCC:

Dossiers received and submitted during past 12 months:

Dossiers expected to be registered over following 12 months:

2018

1 January 2011 1 January 2012

273

65

40-60

274

93

25

19

Number of products registered – December 2011

Ciplazar Co50mg/12,5mg100mg/25mg

Launched

r

r

Docetaxel20mg

80mga

a

When?

September 2011

September 2011

Paclitaxel30mg a

a

September 2011September 2011

a September 2011100mg300mg

Azithromycin500mg

500mg iva

a

September 2011September 2011

Liposurf r

Nelfinavir r

Vinorelbine a September 2011

Cisplatin 10mg/50mg r

Launch - April 2012Launch - April 2012

Launch - March 2012

20

Blockbuster Drugs – 10 years

Source: Pharmaceutical Executive, Oct 2011

Rank Product Therapeutic Class Sales*Registered and selling

Awaitingregistration

1 Zantac Anti-Ulcerants 2,642 a2 Renitec ACE Inhibitors Plain 1,448 a3 Voltaren Anti-Rheumatic Non-Steroid 1,038 r4 Lopirin ACE Inhibitors Plain 1,0375 Tagamet Anti-Ulcerants 973 r6 Adalat Calcium Antagonist Plain 962 a7 Mevacor Cholesterol/Triglyceride Reducer 914 r8 Naprosyn Anti-Rheumatic Non-Steroid 826 r9 Ceclor Cephalosporins & Combinations 806 a

10 Cardizem Calcium Antagonist Plain 794 r

1991

* Worldwide in US millions

21

Blockbuster Drugs – 10 years I continued




1 Lipitor Cholesterol/Triglyceride Reducer 7,028 a2 Losec Anti-Ulcerants 6,080 r3 Zocor Cholesterol/Triglyceride Reducer 5,317 a4 Norvasc Calcium Antagonist Plain 3,705 r5 Ogastro Anti-Ulcerants 3,490 r6 Zyprexa Anti-Psychotics 3,226 a7 Celebrex Anti-Rheumatic Non-Steroid 3,132 a8 Erypo Erythropoietin Products 2,915 r9 Seroxat Anti-Depressants 2,848 a

10 Vioxx Anti-Rheumatic Non-Steroid 2,606 r

2001


22

Blockbuster Drugs – 10 years I continued




1 Lipitor Cholesterol/Triglyceride Reducer 12,652 a2 Plavix Platelet Aggr. Inhibitor 8,817 a3 Seretide B2 Stimulants + Corticoids 8,467 a4 Nexium Anti-Ulcerants 8,361 a5 Seroquel Anti-Psychotics 6,815 About to launch6 Crestor Cholesterol/Triglyceride Reducer 6,795 a7 Enbrel Anti-TNF Products 6,167 Just submitted8 Remicade Anti-TNF Products 6,0419 Humira Anti-TNF Products 5,959

10 Zyprexa Anti-Psychotics 5,728 a

2010


23

Review of operations


24

Operational review: Cipla Medpro

Cipla Medpro Top 10 products at January 2012

Based on Rands

MAT1/2012(R’m)

MAT1/2011(R’m)

Growth(%)

MAT1/2012Market

share(%)

Marketposition

No of competitors

LEXAMIL 69,4 58,4 18,9 48,5 1 7

VENLOR 69,0 66,0 4,6 67,9 1 6

COXFLAM 52,4 54,3 (3,5) 65,4 1 12

DIDIVIR 50,8 6,9 663,0 34,9 2 4

LANSOLOC 47,7 52,4 (8,9) 55,6 1 10

CARLOC 42,1 39,6 6,4 71,6 1 8

ASTHAVENT 42,0 39,4 6,8 52,6 1 6

BUDEFLAM 33,0 31,7 3,8 34,3 2 6

CIPLA-EFAVIRENZ 32,6 42,2 (22,8) 26,2 2 9

EPITEC 32,3 26,9 20,4 38,0 2 11


25

Operational review: Cipla Medpro I continued

Cipla Medpro Top 10 SEP products at January 2012

Based on Rands

MAT1/2012(R’m)

MAT1/2011(R’m)

Growth(%)

MAT1/2012Market

share(%)

Marketposition

No of competitors

LEXAMIL 69,4 58,4 18,9 48,5 1 7

VENLOR 69,0 66,0 4,6 67,9 1 6

COXFLAM 52,4 54,3 (3,5) 65,4 1 12

DIDIVIR 50,8 6,9 633,0 34,9 2 4

CARLOC 42,1 39,6 6,4 71,6 1 8

LANSOLOC 36,4 42,6 (14,7) 55,6 1 10

BUDEFLAM 33,0 31,7 3,8 34,3 2 6

CIPLA-EFAVIRENZ 32,6 42,2 (22,8) 26,2 2 9

EPITEC 32,3 26,9 20,4 38,0 2 11

DUOLIN 31,9 28,5 12,1 61,6 1 3


26


Cipla Medpro Top 10 SEP products vs Competitors

PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

LEXAMIL 422 907 360 088 69,4 58,4

CIPRALEX 260 468 286 850 58,8 63,1

MYLAN ESCITALOPRAM 33 589 2 469 4,2 0,3

CITRAZ 29 610 36 704 4,1 4,8

ZYTOMIL 28 398 640 3,4 0,1

ASPEN ESCITALOPRAM 29 629 53 022 3,2 5,5

ESCITALOPRAM BE-TA 1 243 - 0,2 -


27


Cipla Medpro Top 10 SEP products vs Competitors I continued

PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

VENLOR 257 352 248 726 69,0 66,0

EFEXOR 50 098 59 128 20,5 24,0

ILLOVEX 32 573 24 709 5,0 5,1

SANDOZ VENLAFAX XL 19 977 12 374 4,9 2,8

ODIVEN 12 088 4 353 1,3 0,5

EFEGEN XR 4 296 - 0,9 -


28



PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

COXFLAM 816 698 872 365 52,4 54,3

LOXIFLAM 219 412 246 482 12,4 12,4

FLEXOCAM 165 647 117 577 5,3 3,5

ARROW MELOXICAM 67 018 55 668 3,0 2,4

MOBIC 63 450 63 512 2,7 3,5

M-CAM 52 497 38 112 1,8 1,3

ZYDUS-MELOXICAM 31 461 40 418 1,0 1,2

ADCO-MELOICAM 29 082 31 140 0,8 0,9

MELOXICAM UNICORN - CLICKS 11 148 - 0,6 -

MELFLAM 10 126 3 007 0,2 0,1

ARTHROCOX 7 119 0,0 0,0

SANDOZ MELOXICAM - - - -


29



PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

TRUVADA 149 621 530 618 56,1 193,3

DIDIVIR 163 728 22 338 50,8 6,9

TYRICTEN 74 983 3 20,6 0,0

ASPEN TENOF&EMTRIC 64 951 1 163 17,9 0,3


30


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

CARLOC 652 968 622 940 42,1 39,6

CARVETREND 149 325 101 866 8,9 5,9

DILATREND 51 203 60 489 5,7 6,7

VEDIBLOK 20 169 15 988 1,2 0,9

ASPEN CARVEDILOL 12 254 11 158 0,8 0,7

CARVEDILOL-HEXAL 49 1 152 0,0 0,1

CARVEDILOL - RANBAXY - 1 - 0,0

MERCK-CARVEDILOL - - - -



31


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

LANSOLOC 222 673 261 904 36,4 42,6

LANCAP 187 586 128 297 17,0 11,6

LANZOR 16 214 20 910 5,8 7,2

ASPEN-LANSOPRAZOLE 70 180 92 068 5,5 6,7

LANSOPRAZOLE-WINTH 25 962 33 068 4,3 5,3

GASTRID 8 636 2 178 1,3 0,3

ADCO-ROZNAL 3 521 3 374 0,6 0,6

RAN-LANSOPRAZOLE - 680 - 0,0

SIMAYLA LANSOPRAZO - 197 - 0,0



32


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

PULMICORT 168 966 147 855 36,7 32,1

BUDEFLAM 238 670 246 126 33,0 31,7

INFLAMMIDE 80 409 106 640 14,7 18,4

INFLANAZE 79 689 108 189 9,9 13,1

RHINOCORT 13 063 15 553 1,5 1,8

SPEC-BUDESONIDE 2 307 3 037 0,2 0,3



33


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

ASPEN EFAVIRENZ 310 043 401 778 45,0 56,3

CIPLA-EFAVIRENZ 225 034 291 424 32,6 42,2

STOCRIN 119 548 223 674 20,7 39,2

ADCO-EFAVIRENZ 112 100 225 408 12,7 32,2

SONKE-EFAVIRENZ 51 030 69 909 6,1 8,3

ERIGE 46 228 35 007 5,5 4,1

HEVAZ 8 872 - 1,3 -

ARROW EFAVIRENZ 1 005 - 0,1 -

EFAVIRENZ - AURO 1 - 0,0 -



34


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

LAMICTIN 182 450 178 333 44,2 43,1

EPITEC 134 725 114 585 32,3 26,9

LAMITOR 19 990 14 692 4,2 2,9

DYNA-LAMOTRIGINE 9 945 4 139 1,7 0,7

ASPEN LAMOTRIGINE 8 975 9 392 1,6 1,7

ARROW LAMOTRIGINE 2 539 2 879 0,5 0,6

SANDOZ LAMOTRIGINE 1 022 1 120 0,2 0,2

LAMIDUS 1 830 843 0,2 0,1

AUSTELL-LAMOTRIGINE - - - -

LAMEPTIL - - - -

MERCK-LAMOTRIGINE - - - -



35


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

DUOLIN 98 547 89 763 31,9 28,5

COMBIVENT 78 082 94 391 18,4 21,0

ADCO COMBINEB 5 001 3 564 1,5 1,1



36


Cipla Medpro Top 10 OTC products at January 2012

Based on Rands

MAT1/2012(R’m)

MAT1/2011(R’m)

Growth(%)

MAT1/2012Market

share(%)

Marketposition

No of competitors

ASTHAVENT 42,0 39,4 6,8 52,6 1 6

FLOMIST 21,9 21,4 2,3 37,5 2 3

ALLECET 20,0 18,8 6,1 23,8 2 13

BECLATE AQUANASE 18,2 20,4 (10,8) 84,1 1 7

FEXO 14,1 10,1 38,8 50,9 1 7

K-FENAK 13,9 7,0 97,8 10,2 5 7

AIRMUNE 12,9 7,1 81,8 16,8 3 6

CIPLATON 11,6 10,6 9,5 9,6 4 10

LANSOLOC 11,3 9,7 16,6 82,2 1 5

MEDASPOR 9,8 9,2 6,2 23,6 2 21


37


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

ASTHAVENT 2 136 828 2 069 326 42,0 39,4

VENTEZE 1 407 324 1 286 007 24,9 22,4

VENTOLIN GKC 176 446 185 043 7,9 7,9

VENTOLIN 29 888 27 551 5,0 3,4

VARI-SALBUTAMOL 4 907 - 0,0 -

AIROMIR 134 216 0,0 0,0


Cipla Medpro Top 10 OTC products vs Competitors

38


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

FLIXONASE 165 745 229 217 29,1 36,4

FLOMIST 364 987 213 982 21,9 21,4

FLONASE AQUEOUS 123 275 42 104 7,4 2,5


Cipla Medpro Top 10 OTC products vs Competitors I continued

39


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

TEXA 1 073 163 789 426 34,0 24,5

ALLECET 368 154 336 770 20,0 18,8

ZYRTEC 75 453 82 339 10,2 11,0

ADCO-CETIRIZINE 147 596 125 758 5,3 4,6

ASPEN CETIRIZINE 141 391 172 462 4,5 4,0

AUSTELL-CETIRIZINE 142 681 157 914 2,9 3,1

ACUZYRT 76 900 49 186 2,8 1,5

ZETOP 22 297 13 617 1,3 1,0

ALLERMINE 33 387 40 200 1,0 1,2

CETRIZINE-HEXAL 22 887 16 270 1,0 0,7

ZYNCET 30 008 14 313 0,9 0,5

BETEK 4 819 18 104 0,1 0,4

SANDOZ CETIRIZINE 354 105 0,0 0,0



40


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

BECLATE AQUANASE 402 303 461 258 18,2 20,4

CLENIL AQ 81 470 71 448 3,4 3,0

VENTNAZE 211 141 0,0 0,0

RINAZE AQ NASAL SP 96 2 0,0 0,0

SANDOZ BECLOMETHAS 1 - 0,0 -

BECONASE - - - -

CLENIL - - - -



41


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

FEXO 201 305 147 832 14,1 10,1

TELFAST 74 926 39 479 10,2 6,4

TELLERGE 51 966 35 754 1,8 1,1

FASTWAY 10 853 13 314 1,0 0,8

FENOFEX 12 842 6 246 0,6 0,2

FEXO-FAST 1 698 25 362 0,0 1,1

FEXAWAY 1 4 328 0,0 0,2



42


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

CATAFLAM 1 180 105 1 119 780 45,1 43,9DICLOFLAM 657 934 535 264 19,3 20,1K-FENAK 477 042 248 670 13,9 7,0CATAFAST-D 141 788 8 590 5,4 0,3DICLOHEXAL 378 678 550 513 4,0 5,8DYNAK 5 181 8 521 0,2 0,3DICLOHEXAL K 1 384 4 394 0,1 0,2



43


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

BIOPLUS 734 310 681 475 31,0 25,2

VITA-THION 439 323 491 877 28,8 29,4

PHARMATON 189 342 197 732 23,0 23,9

CIPLATON 279 148 270 584 11,6 10,6LIVITON 283 039 328 367 9,4 10,5

TURBOVITE WHIZ FIZ 129 185 94 458 5,8 4,3

TURBOVITE G-WHIZ 116 488 94 447 5,3 4,5

TURBOVITE 96 119 103 674 4,0 4,2

PHARMATON FIZZI 38 865 45 114 1,6 1,7

TURBOVITE DECAF 10 420 13 455 0,3 0,5



44


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

LANSOLOC 394 161 325 474 11,3 9,7

LANZOR HB 41 640 37 206 1,4 1,2

ASPEN-LANSOPRAZOLE 40 562 57 160 1,1 1,5

ADCO-ROZNAL - - - -

SIMAYLA LANSOPRAZO - 6 - 0,0



45


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

VIRALCHOICE 450 866 446 831 37,0 36,2

VIRAL GUARD 263 850 122 240 19,7 8,9

AIRMUNE 455 606 256 198 12,9 7,1

CRECHE GRD IMMUNE 54 166 44 521 3,9 3,2

IMMUNOCHOICE 32 536 37 823 3,1 2,7

MATLA IMMUNE BOOST 19 307 24 129 0,6 0,8



46


PRODUCT

MAT1/2012(Units)

MAT1/2011(Units)

MAT1/2012(R’m)

MAT1/2011(R’m)

CANESTEN 128 907 146 665 12,3 12,5MEDASPOR 604 895 618 078 9,8 9,2CANEX 804 621 781 700 5,0 4,8CANDIZOLE 308 600 311 426 3,7 3,5CANALBA 202 668 183 669 2,8 2,4NORMOSPOR 243 774 236 563 2,1 2,1XERASPOR 153 704 166 794 1,2 1,4COVOSPOR 74 619 94 305 1,1 1,4A-POR 92 628 429 0,8 0,0CLOMADERM 135 566 148 796 0,6 0,7CLOTRIMAZOLE 56 299 42 797 0,6 0,5INNOSPORE 81 565 32 544 0,6 0,2CLOSCRIPT 40 796 27 570 0,5 0,4TRIMAZE 30 137 22 824 0,3 0,2CLOTRIMAZOLE (A&G) 12 756 24 027 0,1 0,1GYNO-TRIMAZE 398 2 930 0,0 0,0CANDASPOR 34 2 091 0,0 0,0FUNGISPOR 117 313 0,0 0,0DYNASPOR - 17 - 0,0MICOMISAN - 3 441 - 0,1MYCOHEXAL - - - -



47

Products launched in 2011

Oncology range

Product name Month launched Sales in 2011

September 2011 R4,2 million

Medpro Azithromycin September 2011 R624 000

Triplavar September 2011 R450 000

Olexar April 2011 R16,2 million

48

Products planned for 2012

Atova/Prog

Product name Opposition company’s sales

R41 million

Psyquel R96 million

Imavec R108 million

Odimune R155 million

Artem/Lumefan R13 million

Doxorubicin R25 million

49

Tenders

Current tenders: * Smaller portion of expected off take in government ARV tender* R100 million over 2 years (large animals) – only a small portion realised in 2011

New tenders won: * A small tender in Botswana – R280 000* A portion of the HP02-2012 AI re-tender (R27 million (Tavaloxx) TB)

Tenders currently tendered for:* HP04-2012 ONC – aiming for the full R82 million over two years* HP05-2012 DI – aiming for R145 million over two years* HP06-2012 SVP

Outlook on tender process:* Likely that we will gain ground in Botswana, Lesotho, Namibia and Swaziland* Confident on winning the oncology tenders, as well as the HP05-2012 DI* Tenders up for re-tendering: Confident that we will perform well in the respiratory and tablet

tenders

50

CMSA: Period on period comparison

31 Dec 2006

(restated) *31 Dec 2007 *

31 Dec2008 *

31 Dec2009

31 Dec2010

31 Dec2011

(Actual)

31 Dec2011

(excl non-recurring income)

Turnover (R’000) 673 586 806 234 994 892 1 262 058 1 446 979 1 767 561 1 767 561

Net profit before tax (R’000) 159 815 165 348 192 647 238 504 289 748 518 330 449 580

Net profit before tax / Turnover (%) 24 21 19 19 20 29 25

Share price – 31 December (cents) 447 403 230 495 715 655 655

* Continuing operations

51

Animal Health revenue growth

Small animal (R’m) *

Large animal (R’m) *

Total(R’m) *

January – December 2008 12,9 25,7 38,6




Growth (2011 vs 2010) 11% 45% 35%

* After eliminations

52

Distribution Centres

• 2 distribution centres, based in Cape Town – distribution throughout South Africa, including Namibia and Botswana

• 8 500 m2 floor space

• Improved both distribution centres’ internal flow of stock

- 1 distribution centre now only used for “receiving”- the other only for “despatch”- this generated approximately 2 000 m2

additional space which we can use to absorb growth temporarily

• All pallets, plastic, carton and paper are recycled

• 3,5 million – 6,5 million units picked, sold and supplied each month

• 400 000 kg – 550 000 kg per month distributed across South Africa

53

Industry opinions

Source: Cipla Medpro Analyst/Broker Summary 2011-2012 (Old Mutual, Credit Suisse, Avior Research, Investec)

• Not a generics manufacturer but a generics importer, > 88% imported

• High exposure to R/$ on GP margin

• Cipla India – 20 years (2005)

Any product, provided patent expired in SA

Free dossiers – no purchase consideration

Pricing: Mutual basis and 180 days payment terms

10% royalty fee for cannibalisation if products are sourced from other manufacturers

• Manufacturing

25% offered to Cipla India

Increased capacity (K-Fenak, Ciplaton, Coxflam)

• 60% of OTC sales = top 10 products

• Advertising budget R186 million

54

Industry opinions I continued


Negatives

• Regulatory environment – pace of registrations at MCC

• India holds the power

• Long-term growth is limited

No independent deals

• Absence of acquisition strategy

• Pace of draw down on ARV tender

• Key man risk

• Vulnerable to weakening Rand

55

Industry opinions I continued


Positives

• ARV tender

• Exciting and reliable pipeline

• Entering new therapeutic classes

• Fastest growing of four listed players

• Decrease losses at manufacturing

• African expansion/distribution agreements and appointment of CEO African expansion

• Agri tender 2011 – 2013

• Share = Buy, value @ R8,00 – R9,00

• Decrease in net financing costs

56

Review of results

Chris Aucamp Chief Financial Officer

57

Financial highlights

Group revenue R1 767,6 million

December 2011

+ 22%

Group PBIT R568,3 million+ 64%

Group PBT R518,3 million+ 79%

Group PAT R366,1 million+ 84%

Headline earnings R361,3 million+ 85%

HEPS and EPS 80,8 cents+ 83%

58

CMSA growth since 2006

674 806995

1,2621,447

1,768

2006* 2007* 2008 2009 2010 2011

(R’m

illio

n)

31 December

Revenue growth


CAGR 21%

194 199 228 261348

500

2006* 2007* 2008 2009 2010 2011**

(R’m

illio

n)

31 December

PBIT growth CAGR 21%

** Excludes settlement income

100 106 130 162199

317

2006* 2007* 2008 2009 2010 2011**

(R’m

illio

n)

31 December

PAT growth CAGR 26%

24,6 24,5 29,1 36,6 44,2

69,8

2006* 2007* 2008 2009 2010 2011**

cent

s

31 December

HEPS growth CAGR 23%

59

CMSA growth since 2006 I continued

* Continuing operations** Excludes settlement income

562 512 585 592 601 697

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2006* 2007* 2008 2009 2010 2011

Revenue

PBIT**

Number of employees

31 December

(R’m

illio

n)

60

Group ratio analysis

31 December2011

30 June2011

31 December 2010

Debtors days 67 67 63

Creditors days 170 185 186

Inventory days 181 156 157

Current ratio 1,6 1,6 1,4

Solvency ratio 3,6 3,4 3,4

Interest cover (times) 9,8 9,7 5,7

Gearing ratio 19% 14% 20%

When excluding ARV stock, arriving just before 2011 year end –

inventory days reduce to 151 daysFull settlement income included in

June 2011

61

Cipla Medpro vs opposition companies

Results from continuing operations +/-

CMSAYear ended

31 December 2011 +/-

AdcockYear ended

30 September 2011 +/-

AspenYear ended

30 June2011

Revenue (R’billion) 22% 1,768 8% 4,454 29% 12,383

EBITDA (R’billion) 62% 0,594 -7% 1,170 26% 3,503

HEPS (cents) 83% 80,8 31% 465,1 13% 510,9

Dividend /distribution per share (cents) 27% 14,0 4% 187,0 50% 105,0

Normalised HEPS (cents) 11% 58,3 -9% 465,1 19% 544,3

Ordinary shares bought back 1,7% 2,5% -

PE ratio (times)* 11,2 12,9 15,4

* Calculated by Cipla Medpro, based on normalised HEPS

Source: Adcock Ingram Holdings Limited – 2011 Annual Report; Aspen Pharmacare Holdings Limited – 2011 Annual Report (continuing operations)

62

Consolidated statement of comprehensive income

Change

ReviewedYear ended

31 December 2011

(R’000)

AuditedYear ended

31 December 2010

(R’000)

Revenue +22% 1 767 561 1 446 979

Gross profit +18% 1 055 516 898 087

Net operating expenses (487 182) (550 584)

PBIT (Operating profit) +64% 568 334 347 503

Net finance costs (50 004) (57 755)

PBT +79% 518 330 289 748

Income tax expense (152 229) (90 445)

PAT / Total comprehensive income for the year +84% 366 101 199 303

Attributable to equity holders of the parent 361 075 195 403

Attributable to non-controlling interest 5 026 3 900

EPS – Basic +83% 80,8 cents 44,2 cents

EPS – Diluted +84% 80,4 cents 43,7 cents

Includes settlement income

63

Analysis of consolidated statement of comprehensive income

Change

ReviewedYear ended

31 December 2011(R’000)

AuditedYear ended

31 December 2010(R’000)

Reconciliation of headline earningsProfit attributable to equity holders of the parent +85% 361 075 195 403Adjusted for:(Gain) loss on disposals of property, plant and equipment (72) 42Loss on deemed disposal of joint venture* 385 -Total tax effects of adjustments (98) (6)Headline earnings +85% 361 290 195 439Abnormal items, net of tax (100 836) 35 799Normalised headline earnings +13% 260 454 231 238

Shares in issue (‘000) – Including treasury shares 446 462 454 027Weighted shares (‘000) – Basic (excluding treasury shares) 446 945 442 489Weighted shares (‘000) – Diluted (excluding treasury shares) 449 264 447 241

HEPS – Basic +83% 80,8 cents 44,2 centsHEPS – Diluted +84% 80,4 cents 43,7 cents

Normalised HEPS +11% 58,3 cents 52,3 centsNormalised EPS +11% 58,2 cents 52,3 cents

Headline & normalised earnings

* Cipla Nutrition (Pty) Limited is now a subsidiary of the group

64

Analysis of consolidated statement of comprehensive income I continued

Change

ReviewedYear ended

31 December 2011

(R’000)

% of revenue

2011

AuditedYear ended

31 December 2010

(R’000)

% of revenue

2010

Other income +1 733% 121 264 6 614

Other operating expenses +9% (608 446) 34% (557 198) 39%

Advertising & marketing costs (excl animal businesses) +9% (204 114) 12% (186 797) 13%

Animal businesses +30% (29 168) 2% (22 416) 2%

Delivery expenses +77% (52 608) 3% (29 780) 2%

Depreciation & amortisation +29% (19 684) 1% (15 207) 1%

Lease rentals +25% (30 864) 2% (24 698) 2%

Legal & professional fees +186% (18 053) 1% (6 306) 0%

Other expenses -52% (45 957) 3% (95 213) 7%

Staff costs (incl IFRS 2 Share-based payments) +18% (207 998) 12% (176 781) 12%

Net operating expenses -12% (487 182) (550 584)


Net operating expenses

65


ReviewedYear ended

31 December2011

(R’000)

Average2011

$ rate

AuditedYear ended

31 December2010

(R’000)

Average2010

$ rate

Gain on foreign exchange - 8,14 4 871 7,11Loss on foreign exchange (59 952) 8,14 (27 396) 7,11Gain (loss) on FECs 109 225 8,27 (44 739) 6,89Foreign exchange gains (losses) included in operating profit 49 273 (67 264)

FECs in excess of $50 million at an average of R7,54 up to end

September 2012

Foreign exchange gains (losses)

7.0

7.2

7.4

7.6

7.8

8.0

8.2

8.4

Exchange rate movement: January 2012 – March 2012*

Mar 2012Jan 2012

Ran

d/U

SD

* Source: ABSA Capital

66


Change

ReviewedYear ended

31 December 2011(R’000)

AuditedYear ended

31 December 2010(R’000)

Finance income 8 208 2 830Bank accounts 4 073 2 381Interest rate swap refunds - 266Fair value gain on interest rate swaps 4 063 -Other 72 183

Finance costs (58 212) (60 585)Overdrafts (4 907) (6 226)Nedbank Limited loan facilities (22 465) (18 052)Preferences shares (1 005) (9 531)Instalment sale agreements (4 424) (4 920)Interest rate swap settlements (4 345) (3 020)Fair value loss on interest rate swaps - (2 228)Notional interest on extended credit terms (IFRS adjustment) (21 066) (16 894)Other - (37)Borrowing costs capitalised in terms of IAS 23 - 323

Net finance costs -13% (50 004) (57 755)

Net finance costs

67


31 December2011

31 December 2010

31 December2009

Preference share liability (R’000) - 34 500 194 270

Interest on preference shares (R’000) 1 005 9 531 21 002

Effective tax rate 29,4% 31,2% 32,0%

Effective tax rate vs redemption of preferences shares

28

30

32

34

36

38

40

2006* 2007* 2008 2009 2010 2011

Effective tax rate movement since 2006

(%)

31 December


68

Segmental analysis

SEP71%

OTC22%

Other7% Revenue 2011

SEP72%

OTC22%

Other6% Revenue 2010

SEP75%

OTC20%

Other5% PBIT 2011*

SEP80%

OTC16%

Other4% PBIT 2010

* Excludes settlement income

69

Segmental analysis - SEP

Change

31 December2011

(R’000)

31 December2010

(R’000)

Revenue +20% 1 258 717 1 046 398

Gross profit +11% 758 525 682 783

Gross profit margin 60% 65%


Operating profit margin 35% 26%

SEP segment: Includes all scheduled products > schedule 2, both private and tender


70

Segmental analysis - OTC

Change

31 December2011

(R’000)

31 December2010

(R’000)

Revenue +24% 391 955 316 978

Gross profit +36% 241 159 177 781




OTC segment: Includes all non-scheduled products, as well as schedule 0,1 and 2, which are available over the counter, both private and tender

71

Segmental analysis - Other operating segments

Change

31 December2011

(R’000)

31 December2010

(R’000)

Revenue +40% 116 889 83 603

Gross profit +49% 55 832 37 523




Other operating segments: Includes small animal, large animal (including tender), agricultural and other divisions

72

Group GP analysis

The GP% has decreased slightly from 62,1% at 31 December 2010, to 59,7% at 31 December 2011 – slightly higher than the 58,2% at 30 June 2011.

Overall decrease in GP% when compared to 2010, is mainly due to:

• No SEP increase in 2011, compared to the 7,4% on certain products in June 2010• Increase in tender sales (ARV-tender portion which were at lower margins)• Approximately 85% of goods are imported, therefore GP remains exchange rate sensitive. Hence we

continue to follow our FEC policy.

73

Consolidated statement of financial position

Reviewed31 December 2011

(R’000)

Audited31 December 2010

(R’000)

ASSETSNon-current assets 2 019 511 1 923 821Property, plant and equipment 444 457 420 125

Intangible assets 1 535 443 1 475 470

Other investments 8 6

Loans receivable 3 191 -

Deferred tax assets 36 412 28 220

Current assets 824 116 609 335Inventory 414 907 289 661

Income tax receivable 1 312 742

Trade and other receivables 387 523 264 775

Loans receivable 3 881 7 709

Cash and cash equivalents 16 493 46 448

Total assets 2 843 627 2 533 156

74

Consolidated statement of financial position I continued


(R’000)


(R’000)

EQUITY AND LIABILITIESCapital and reserves 2 033 201 1 777 396Non-controlling interest 12 544 7 472Total equity 2 045 745 1 784 868

Non-current liabilities 297 512 326 770Loans and borrowings 282 722 314 428Deferred tax liabilities 14 790 12 342

Current liabilities 500 370 421 518Bank overdrafts 106 963 71 296Loans and borrowings 21 976 17 354Income tax payable 29 295 10 012Trade and other payables 342 136 322 856

Total liabilities 797 882 748 288Total equity and liabilities 2 843 627 2 533 156

75

Total loans and borrowings


(R’000)


(R’000)

Nedbank Limited – Preference shares - 34 500Nedbank Limited – Loan facility (CMH) 100 000 100 000Nedbank Limited – Loan facility (MP) 151 000 125 000Nedbank Limited – Instalment sale agreements (CMM) 44 447 58 404Other 9 251 13 878Total loans and borrowings 304 698 331 782

Consisting of:Non-current loans and borrowings 282 722 314 428Current loans and borrowings 21 976 17 354Total loans and borrowings 304 698 331 782

Debt28%

Equity72%

December 2011Debt30%

Equity70%

December 2010

76

Consolidated statement of cash flows

ReviewedYear ended

31 December 2011(R’000)

AuditedYear ended

31 December 2010(R’000)

Profit before finance costs and income tax 568 334 347 503Adjust for non-cash items:Depreciation 24 103 18 121Amortisation 1 394 507IFRS 2 Share-based Payment expenses 1 455 10 478IFRS FEC (gain) loss (109 225) 44 739Fair value adjustment of listed shares (2) (2)(Gain) loss on disposals of property, plant and equipment (72) 42Loss on deemed disposal of joint venture 385 -Operating profit before working capital changes 486 372 421 388Increase in inventory (125 246) (107 988)Increase in trade and other receivables (82 035) (33 630)Increase in trade and other payables 63 595 34 687Cash generated by operations 342 686 314 457Net finance costs paid (33 598) (42 218)Dividends paid (58 103) (22 743)Income tax paid (132 967) (94 514)STC paid (6 010) (4 042)Cash flows from operating activities 112 008 150 940

77

Consolidated statement of cash flows I continued

ReviewedYear ended

31 December 2011(R’000)

AuditedYear ended

31 December 2010(R’000)

Cash flows from operating activities 112 008 150 940Cash flows from investing activities (107 021) (98 226)Cash flows from financing activities (70 609) (17 419)Net (decrease) increase in cash and cash equivalents (65 622) 35 295Cash and cash equivalents at beginning of the year (24 848) (60 143)Cash and cash equivalents at end of the year (90 470) (24 848)

Mainly due to the acquisitions of:• Property, plant and equipment of R48,4 million• Intangible assets of R55,5 million

Includes:• Share buy-back of R50,0 million in November 2011• Full settlement of R34,5 million of preference shares to Nedbank Limited• R10,0 on working capital and instalment sale facilities• R26,0 million draw downs on the Nedbank Limited loan facility

78

Net cash and cash equivalents


(R’000)


(R’000)

Bank balances 6 910 5 377Call deposits 9 583 41 071Overdrafts (106 963) (71 296)Net cash and cash equivalents (90 470) (24 848)

Due to the following:• Payment of 2010 interim dividend of R29,5 million (October 2011)• Payment of 2011 2nd provisional tax payment of R72,6 million (December 2011)• Payment of R50,0 million for 1,7% of ordinary shares bought back (November 2011)• R49,2 million owing by certain provincial health departments, in excess of normal debtor terms

79

Share buy back

* Source: Computershare South Africa

30 Jun

7 Jul

11 Aug

30 Sept

25 Nov

29 Nov

30 Dec

23 Feb

24 Feb

29 Feb

8 Mar

540

560

580

600

620

640

660

680

700

Share price (cents)

Lowest

• 7 564 796 shares bought back in November 2011• Average rate of 657 cents per share (excluding costs)• 1,67% of total issued shares

Trading statementHighest

80

Final cash dividend – 2011

• Dividend cover of between four and five times maintained, based on normalised earnings• No STC on final dividend - Dividends Tax will be withheld as declaration after 1 April 2012• Full disclosure on declaration and payment details – refer to commentary included in booklet

Interim – 5,0 cents per share Interim – 6,5 cents per share+ 30%

20112010

Final – 6,0 cents per share Final – 7,5 cents per share+ 25%

Total – 11,0 cents per share Total – 14,0 cents per share+ 27%

81

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