Deccan Health Care Ltd. · BSE:DECCAN
Deccan Health Care — Investor Presentation (January 2019)
28 slides from Deccan Health Care's investor presentation, Jan 9, 2019
Slide 1: Investor Presentation, 9th January 2019
INVESTOR PRESENTATION | 9°" JANUARY, 2019
Slide 2: Disclaimer
Disclaimer This Investor Presentation has been prepared by ValueWise Investor Relations LLP in consultation with Deccan Health Care Limited (DHCL) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or infor
Slide 3: Business overview
Business overview Deccan N) teathoore BE YOUNG Stay WoW Boost Quality of Life
Slide 4: About Deccan Healthcare
About Deccan Healthcare • Incorporated in 1996, Nutraceuticals and wellness product Company; • DHC’s food pills and meals categorized under Fast Moving Consumer Healthcare (FMCH) products are popular with millennials and GenX • Food pills and meals covering 52 consumer wellness goals preventing/curi
Slide 5: Journey So Far
Journey So Far Phase 1: 1996-2005 Phase 2: 2005-2010 Phase 3: 2010 onwards Trading of pharmaceuticals Third party manufacturing Own manufacturing facility, E-commerce platform, Exports 2008 – In addition to third party 2010 – Set up owned manufacturing facility in tax benefit zone at Rudrapur, Uttar
Slide 6: Unleashing the Power of E-commerce
Unleashing the Power of E-commerce • Awarding winning nutraceutical branded products + E- commerce platform to drive strong growth for DHC DHC E-commerce Platform Indian E-commerce industry DHC's Growth engines Unique features • 40% of Indian population has access to internet • Private label product
Slide 7: Business Value Chain
Business Value Chain • Strong presence across value chain viz. R&D, manufacturing, branding and distribution • Benefits of pricing power, superior cost control and data leveraging for decision making across various points of the value chain Deccan Health Care’s presence in value chain R&D Product Di
Slide 8: Product Profile
Product Profile Nutrition goals Condition specific goals Ingredient focus goals Daily care solutions • Daily body cell nutrition • Energy booster • Ingredient focused nutritional • Good for daily hair care Boys micro nutrition • Good for heart solutions • Good for daily skin care Body cells nutr
Slide 9: Innovation and Manufacturing Centre
Innovation and Manufacturing Centre SIDCUL Pantnagar, Rudrapur, Uttarakhand – A Tax Exempt zone till FY-2020. Capabilities Softgels, Hardgels, Tablets, Creams and Lotions, Liquids, Powders, Pastes, Special dosages Approvals CGMP, FSSAI, UK Certified WHO-GMP++, EQFS Certification, German Certificatio
Slide 10: Key Strategic Initiatives
Key Strategic Initiatives Increase sales through e-commerce medium Investment in R&D driving sustainable growth 3 4 Optimum utilization of production capacity 2 5 Widen our product range Create a global presence 1 6 Improve operational efficiencies 10
Slide 11: Industry Overview
Industry Overview Deccan N) teathoore BE YOUNG Stay WoW Boost Quality of Life
Slide 12: Indian Nutraceuticals Industry
Indian Nutraceuticals Industry India’s Nutraceutical Market Size and Growth Preferences Convenience 10.0 8.3 Interest in 6.9 Preventive health Awareness 5.8 Key demand 4.8 4.0 drivers Demographics Regulations 2017E 2018F 2019F 2020F 2021F 2022F Source: ASSOCHAM-MRSSS Report 12
Slide 13: Favorable Demographics
Favorable Demographics • Higher working population calls for busier schedules, high stress and lesser time for self care for large number of people • Rising standard of living leads to preference for better healthcare and rising spends Share of working population (%) Numbers of households (mn) Per c
Slide 14: Interest in Preventive Health
Interest in Preventive Health • Shift in mindset from “Life span” to “Health span” • Rising cost of healthcare driving interest in preventive health – per capita healthcare expense grew 7% CAGR to $63 between 2010 to 2015 (as per The World Bank) • Vulnerability to lifestyle ailments – arising from t
Slide 15: Consumer Preferences
Consumer Preferences • Baby Boomers - focused on preserving a healthy lifestyle as they enter into retirement age • Millennials - preference for active lifestyle for physical endurance, mental alertness and to be active & awake Health Conscious Individuals (in mn) Incidences of heart attacks as per
Slide 16: Convenient Formats, Awareness, Ease in Regulation
Convenient Formats • Availability of nutraceuticals in various formats viz. Softgels, Hardgels, Tablets, Creams and Lotions, Liquids, Powders, Pastes has made consumption convenient and easier Awareness • An ASSOCHAM report states “One rupee spent on prevention saves Rs. 132.33 in absenteeism costs
Slide 17: Experienced and Dynamic Management
Experienced and Dynamic Management “There is no success without failure. When you’re pursuing ground-breaking innovations, setbacks go with the territory – unless you have the courage to fail, you’ll never be successful. Innovation is about taking risks and accepting failure.” Mr. Minto Gupta starte
Slide 18: Awards & Recognition
Awards & Recognition Leader with a Purpose Award 2018 Fastest growing SME of the year – Large Size – by Honoured at Kokilaben Dhirubhai Ambani Hospital INDIA LEADERSHIP - Summit & Awards Navbharat SME Business Excellence Award - 2017 and Medical Research Institute - 2017 18
Slide 19: Awards & Recognition
Awards & Recognition Fastest Growing Online Sustainable Product Innovation Best Wellness Brand - Fastest Growing SKOCH Award - 2018 Nutraceutical Store - CIMS Medica Award – 2018 and Online Nutrition Store – ASSOCHAM Nutrition & Wellness Awards 2018 FIDSI Award - 2018. Nutraceuticals Excellence Awar
Slide 20: Financial Snapshot
Financial Snapshot Deccan \ esther BE YOUNG Stay WoW Boost Quality of Life
Slide 21: Revenue Break-up
Revenue Break-up Sales Channels (%) Domestic state-wise sales break-up (Rs. Crores) Offline Sale Online Sale 28% Online Amount States States Amount (Rs.Crores) Offline (Rs. Crores) 72% Gujarat 1.12 Uttarakhand 8.21 West Bengal 1.08 Maharashtra 4.75 Delhi 1.02 Geographic Sales Uttar Pradesh 1.01 Delh
Slide 22: Financial Highlights
Financial Highlights Total Revenue (Rs. Crores) EBIDTA (Rs. Crores) PAT (Rs. Crores) 39.76 12.69 15.43 CAGR 57% CAGR 58% CAGR 89% 29.39 12.85 9.54 16.18 6.18 3.54 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 EBIDTA (%) Debt to Equity (x) RoCE (%) 1.7 35.4 29.9 23.3 43.8 38.8 0.5 0.2 39.4 FY16 FY17 F
Slide 23: Financial Statements
Financial Statements 2 1 eccan =) a SS Healncare BEJFYOUNG Dnt SPT ETE z =Stay WoW Boost Quality of Life *
Slide 24: Balance Sheet
Balance Sheet (in Crores) Particulars Jun 30, 2018 FY18 FY17 FY16 Shareholders Fund Share Capital 13.50 13.50 12.93 10.43 Reserves & Surplus 25.43 22.97 9.21 (2.02) Total Net-worth 38.93 36.48 22.14 8.40 Long term borrowing 7.98 8.41 10.76 13.94 Deferred Tax Liabilities 1.70 1.68 1.70 1.72 Other Non
Slide 25: Profit & Loss Statement
Profit & Loss Statement (in Crores) Particulars Jun 30, 2018 FY18 FY17 FY16 Revenue from operations 8.54 39.47 29.34 16.15 Other income 0.04 0.28 0.04 0.01 Total Revenue 8.59 39.76 29.38 16.17 Cost of materials consumed 2.51 15.71 9.41 5.22 Changes in inventories of finished goods work-in-progress a
Slide 26: Cash Flow Statement
Cash Flow Statement (in Crores) Particulars Jun 30, 2018 FY18 FY17 FY16 Cash Flow from Operating Activities Restated Net profit Before Tax 2.47 12.67 9.52 3.54 Adjustments For: Depreciation 0.30 1.28 1.19 1.15 Provision of Gratuity 0.00 0.16 0.05 0.00 (Interest Received) (0.00) (0.00) (0.01) (0.00)
Slide 27: IPO Highlights
IPO Highlights Details Particulars Issuer Deccan Health Care Limited Price Rs. 100 Issue Size Rs. 42.12 crs IPO Venue BSE SME Listed On Date 31st December, 2018 42,12,000 Equity Shares of Rs. 10/- each, Fresh Issue: 22,12,000 Equity Shares, Offer Issue Size For Sale: 20,00,000 Equity Shares Aggregat
Slide 28: Issuer Company
ISSUER COMPANY Deccan Health Care Limited 247, 2nd floor, Dwarakapuri Colony, Punjagutta, Hyderabad, Telangana - 500082, India 28
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