BEXIMCO PHARMACEUTICALS LTD.

FINANCIAL STATEMENT ANALYSIS

2009

About Beximco Pharmaceuticals Ltd

Beximco Pharmaceuticals Ltd ( Beximco Pharma ) belongs to Beximco Group, the

largest private sector industrial conglomerate in Bangladesh which has diversified

into textile, apparels, pharmaceuticals, ceramics, aviation, real estate, ITS & media

and energy sectors. Most of these companies are actively being traded in the stock

exchange of Bangladesh with a total market capitalization of more than $1.65

billion. Incorporated in the late 70s, Beximco Pharma began as a distributor,

importing products from global MNCs like Bayer, Germany and Upjohn, USA and

selling them in the local market, which were later manufactured and distributed

under licensing arrangement. Since then, the journey continued, with a vision to go

a long way and today, Beximco Pharma is one of the largest exporters of medicine

in Bangladesh, wining National Export (Gold) Trophy for a record three times.

Major global regulatory bodies have accredited Beximco Pharma’s manufacturing

facilities, and it has expanded its geographic footprint to 40 countries. The

company has the unique distinction of being the only company in Bangladesh to

get listed on AIM of London Stock Exchange

Beximco Pharma produced produces pharmaceutical formulations and active

pharmaceutical ingredients, having a current portfolio of more than 400 products

and a dedicated team of more than 2500 employees. In its long journey over three

decades, the simple principle on which it was founded remains the same:

producing high quality generics and providing better access to medicines at a much

affordable cost.

Key Milestones

2009: Only Bangladeshi company to receive GMP Certificates form ANVISA,

Brazil.

ION unit was launched for producing injectables, ophthalmics and nebulizer

solutions.

2008: First and only Bangladeshi company to receive GMP Clearance from

Therapeutic Goods Administration (TGA) Australia, and Gulf Central

Committee for Drug Registration, for GCC member States.

Technology transfer arrangement to manufacture Roche’s ARV drug

Saquinavir.

2007: New Oral Solid Dosage (OSD) facility was commissioned according to US

FDA standard.

2006: Launched CFC free HFA inhalers for the first time in Bangladesh.

2005: Only company in Bangladesh to get listed on Alternative Investment Market

(AIM) of London Stock Exchange (LSE) though issuance of GDRs.

Construction of state-of-the-art USFDA standard oral solid dosage facility

was completed.

2003: Became the first company to introduce anti-retroviral (ARV) drugs in

Bangladesh.

2001: First and only Bangladeshi company to enter Singapore, one of the more

regulated markets in Asia.

2000: Only company to achieve National Export Trophy (Gold) for the record 3

rd

time.

1996: IV unit (former Beximco Infusions Ltd.) received ISO 9001 Certification

form TUV-Cert Germany.

1993: Russia became the first export destination for formulation products.

1992: Export operation started with APIs.

1985: Listed on Dhaka Stock Exchange as a public limited company.

1983: Launched own formulation brands.

1980: Started manufacturing products of Bayer AG, Germany and Upjohn Inc,

USA under license.

1976: Company incorporated.

Highlights of 2009

Achieved sales turnover of more than BDT 4.86 billion with more than 21%

growth, outperforming the industry growth of 17%.

The company saw introduction of 26 new products in total of 34

presentations.

ION unit was launched for producing injectables, ophthalmics and nebulizer

solutions and a total of 16 products were launched in the year.

Commissioning of the remaining 3 lines of USEDA standard OSD facility

started having an installed capacity to produce 4 billion tablets annually.

Received regulatory approval from ANVISA (Brazil); as the first

Bangladeshi company.

Construction of new MDI facility completed in 2009; facility will be ready

Q3 of 2010.

Product registration in Australia.

Signed long-term supply agreement with ADF, France for asthma inhalers.

Export turnover grew 59%.

51 products registered in 12 countries.

Oseflu, Beximco’s brand of Oseltamivir, was supplied to central and Latin

America in the wake of pandemic H1N! flu. This drug also supplied to

government agencies and international organizations’ in Bangladesh during

this national emergency.

Global Footprints

Beximco Pharma has a global footprint in 40 countries across 4 continents. Our

position in many Asian and African countries are stronger than ever. Although

currently we are operating mostly in less regulated markets, we are increasingly

focussed on regulated markets of USA and EU for value added generics. In 2009,

our export turnover crossed $4 million registering a growth of 59% over 2008.

Although our export sales contribute little to the total turnover of the company, the

growth rate shows we are going in the right direction. During the year we

registered 51 products in twelve countries, and became the first Bangladeshi

company to export inhaler products to Malaysia. The company received increasing

response from Central America and Africa and we have strengthened our

distribution and marketing efforts in those regions. Our products are widely

prescribed by physicians with trust and confidence and we are being supplied to

renowned hospitals and institutes in many countries which include Raffles

Hospital, Healthway Medical Group and K K Women & Children Hospital in

Singapore, Asthma Drug Facility (ADF) of France, CENABLAST in Chile, and

MEDS and Kenyatta National Hospital in Kenya.

The company has a clear strategy to capitalize on the generic drug opportunities in

overseas markets-both existing as well as newer and developed markets. To realize

the export potential in global generics, particularly the value added generics in the

regulated markets, the company has given top priority in developing internatinal

markets and it continues to pursue approvals from global drug regulatory

authorities. Regulatory approval from ANVISA (Brazil) during the year makes

ways for the company to enter the attractive and emerging markets of Latin

America.

The company entered several new markets in the year and currently it has global

footprints in 40 countries. It has taken aggresive plans to capitalize on the global

generic drug opportunities with increasing focus on regulated markets of EU, USA

and Australia.

In 2009, 51 products registered in 12 countries Export turnover grew

59% over 2008.

Product Registration Worldwide

Australia 1 Asia 322 Africa 75 Middle East 22 Central & Latin America 11

Key Operating and Financial Data

Taka in Thousand

Particulars 2009 2008 2007 2006

Authorized Capital

Paid up Capital

Total Sales

Export Sales

Gross Margin

Profit Before Tax

Net Profit

Fix Assets (Gross)

Shareholder’s Equity

9100000

1511493

4868255

272126

2302048

867467

624740

15621366

10885707

2000000

1259577

4010167

170604

2007296

714121

545341

14291850

10450202

2000000

1145070

3597025

122752

1629515

399678

353068

10516030

8250940

2000000

1040973

3702317

115099

1731086

523243

470659

9885840

7949920

Dividend

Earnings per Share (EPS)

Marketing Price Per Share

(at end of the year)

Price Earnings Ratio (Time)

Number of shareholders

Foreign Investors

ICS including ICB

Investors Account

Sponsors, General Public &

Other Institutions

Number of Employees

15%

4.13

155.8

37.72

80189

54

890

79245

2511

30%

3.61

167.7

46.45

65556

54

885

64617

2310

15%

2.80

58.9

21.04

53892

60

879

52953

2384

15%

4.11

53.7

13.06

48932

58

986

47888

2403

BEXIMCO PHARMACEUTICALS LIMITED

Balance Sheet

As At 31st December 2009

2009 Tk. Change % 2008 Tk. Change %

ASSETS

Non - Current Assets 12975195529 65.2 11957773787 80.69

Property, Plant And Equipments - Carrying

Value

12966587178

65.2

11921072697

80.44

Intangible Assets 5726525 0.03 0

Investment In Share 2881826 0.01 36071090 0.24

Current Assets 6916737893 34.8 2861891654 19.31

Inventories 1722953284 8.7 1505288093 10.16

Spares & Supplies 242034855 1.2 234530326 1.58

Accounts Receivable 694111730 3.5 503916401 3.40

Loans, Advance & Deposits 699204450 3.5 544509106 3.67

Short Term Investment 2500000000 12.6 0 0

Cash & Cash Equivalent 1058433574 5.3 73647728 0.50

TOTAL ASSETS 19891933422 100.0 14819665441 100

SHAREHOLDERS' EQUITY &

LIABILITIES

Shareholders' Equity 10885706614 54.7 10450202145 70.52

Issued Share Capital 1511492960 7.6 1259577470 8.50

Share Premium 1489750000 7.5 1489750000 10.05

Excess Of Issue Price over Face Value Of GDRs 1689636958 8.5 1689636958 11.40

Capital Reserve On Merger 294950950 1.5 294950950 1.99

Revaluation Surplus 1617361714 8.1 1711174747 11.55

Retained Earnings 4282514032 21.5 4005112020 27.03

Non - Current Liabilities

6684775166

33.6

1767431029

11.93

Long Term Borrowings- Net Off Current

Maturity (Secured)

1924933065

9.7

1446600500

9.76

Fully Convertible, 5% Dividend, Preference

Share 4100000000 20.6 0 0

Liability Of Gratuity & WPPF 307425614 1.5 274419253 1.85

Deferred Tax Liability 352416487 1.8 46411276 0.31

Current Liabilities & Provisions 2321451642 11.7 2602032267 17.56

Short Term Borrowings 1451326354 7.3 1461666227 9.86

Long Term Borrowings- Current Maturity 308820056 1.5 648165841 4.37

Creditors & Other Payables 409898122 2.1 263176822 1.78

Accrued Expenses 79094905 0.4 81776450 0.55

Dividend Payable 1727724 0.0 3169568 0.02

Income Tax Payable 70584481 0.3 144077359 0.97

TOTAL LIABILITIES &

SHAREHOLDERS’ EQUITY 19891933422 100.0 14819665441 100

BEXIMCO PHARMACEUTICALS LIMITED

Profit and Loss Account

For The December 31st 2009

Increase Or ( Decrease)

During 2009

2009

Tk.

2008

Tk.

Amount Percent

Net sales Revenue 4868254915 4010167057 858087840 21.4

Cost Of Goods Sold (2566206626) (2002871181) 563335445 28.1

Gross Profit 2302048289 2007295878 294752411 14.7

Operating Expenses: (1300765878) (1008501030)

292264848

29

Administrative Expenses (215192547) (153464283) 61728264 40.2

Selling, Marketing And Distribution

Expenses (1085573331) (855036787)

230536544

27

Profit From Operation 1001282411 998794848 2487563 0.25

Other Income 198986379 686510 198299869 28885.2

Finance Cost (289427992) (249654298) 39773694 15.9

Profit Before Contribution To WPPF 910840798 749827060

161013738

21.5

Contribution To Workers Contribution /

Welfare Fund (43373371) (35706050)

7667321

21.5

Profit before Tax 867467427 714121010 153346417 21.5

Income Tax Expense (242727120) (168779737)

73947365

21.5

Current Tax 0 (173720430) (173720430)

Deferred Tax (Expense) / Income (242727120) 4940693

237786427

4812.8

Profit After Tax Transferred To

Statement Of Changes In Equity 624740307 545341273

79399034

14.6

Earnings Per Share (Of Tk.10 Each)

(Adjusted EPS Of 2008) 4.13 3.61

0.52

14.4

Number Of Share Used To Complete

EPS 151149296 151149296

Financial Overview in graphs

BEXIMCO PHARMACEUTICALS LIMITED

Ratio Analysis

2009

2008

Liquidity Ratio:

Current Ratio 2.98:1 1.1:1

Acid test (Quick) Ratio 1.83:1 0.22:1

Receivable Turnover 8.13 Times 7.99 Times

Inventory Turnover 1.59 Times 1.35 Times

Profitability Ratio:

Profit Margin 12.8% 13.6%

Asset Turnover 0.28 Times 0.30Times

Return On Assets 3.6% 4.1%

Return On Common Stockholder’s Equity 5.9% 5.8%

Earnings Per Share (EPS) Tk. 4.13 Tk. 3.61

Price-Earning( P-E) Ratio 37.72 Times 46.45 Times

Payout Ratio 20.39% 10.52%

Solvency Ratio:

Debt To Total Assets Ratio 45.28% 29.48%

Time Interest Earned 3.49Times 3.34 Times

Appendix:

Key To Solve Financial ratio:

Liquidity Ratio:

1) Current Ratio = Current Assets / Current Liabilities

2) Acid test(Quick) Ratio = Cash + Short Term Investment + Receivable (net) / Currents

Liability

3) Receivable Turnover = Net Credit Sales / Average Net Receivable

4) Inventory Turnover = Cost Of Goods Sold / Average Inventory

Profitability Ratio:

5) Profit Margin = Profit After Tax Transferred To Statement Of Changes In Equity / Net

Sales

6) Asset Turnover = Net Sales / Average Assets

7) Return On Assets = Profit After Tax Transferred To Statement Of Changes In Equity /

Average Assets

8) Return On Common Stockholder’s Equity = Profit After Tax Transferred To Statement Of

Changes In Equity / Average Common Stockholders’ Equity

9) Earnings Per Share (EPS) = Profit After Tax Transferred To Statement Of Changes In

Equity / Weighted Average Common Shares Outstanding

10) Price-Earning( P-E) Ratio = Market Price Per Share Of Stock / Earning Per Share

11) Payout Ratio = Cash Dividend / Profit After Tax Transferred To Statement Of Changes In

Equity

Solvency Ratio:

12) Debt To Total Assets Ratio = Total Debt / Total Assets

13) Time Interest Earned = Income Before Income Taxes And Interest Expenses / Interest

Expenses

Additional Information:

Dividends Paid during 2009 was Tk. 127399591 & 2008 was Tk. 57369278.

Interest Paid During 2009 was Tk. 248370850 & 2008 was Tk. 214066707

Total Assets During 2007 was Tk. 11953418940

Accounts Receivable on 2007 was Tk. 4996807992

Inventories on 2007 was Tk. 1470152242