opto circuits (india) ltd. 1 presentation_april 2013.pdf · 2014-01-30 · market size growth...

Opto Circuits (India) Ltd. 1

Disclaimer

This presentation contains statements that contain “forward looking statements” including, but

without limitation, statements relating to the implementation of strategic initiatives, and other

statements relating to Opto Circuits (India) Limited and its subsidiary companies (“Opto Circuits”)

future business developments and economic performance.

While these forward looking statements indicate our assessment and future expectations

concerning the development of our business, a number of risks, uncertainties and other unknown

factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and

regulatory trends, movements in currency exchange and interest rates, competitive pressures,

technological developments, changes in the financial conditions of third parties dealing with us,


technological developments, changes in the financial conditions of third parties dealing with us,

legislative developments, and other key factors that could affect our business and financial

performance.

Opto Circuits undertakes no obligation to periodically revise any forward looking statements to

reflect future / likely events or circumstances.

Section 1: Company Overview


A fast growing multinational medical device company

Ma

rke

t

Le

ad

er

ship

Cla

ss

Op

era

tio

ns

� World class manufacturing facilities across North America, Europe and Asia

� Investments in R&D to maintain a healthy pipeline of innovations and product developments

� Leader in cardiac and vital signs monitoring, emergency cardiac care, vascular treatmentsand sensing technologies

� USFDA listed and CE marked products which are sold in over 150 countries

� Partnerships with leading OEMs and medical institutions across the value chain

� Well-known brands include Cardiac Science, Criticare Systems, Eurocor and Mediaid

Investment HighlightsCompany Overview


� Revenue and PAT CAGR of more than 50% over the last 5 years with strong margins

� Conservative balance sheet with low leverage; Net Debt to Equity of 0.49x as of Sept 30, 2012

� FY2012 ROCE of 20% and ROE of 34%

Str

on

g F

ina

nc

ial

Pe

rfo

rm

an

ce

Be

st-i

n-C

lass

Op

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� Investments in R&D to maintain a healthy pipeline of innovations and product developments

� 6 global R&D centres with highly skilled and integrated teams

� 205 global patents across product lines as at December 31,2012

� Global sales offices and relationships with marquee distributors

Diversified product portfolio with market leadership position

Segment Breakup

Medical Equipment

H1FY2013 Revenue: 81%

Company Overview

Interventional Devices

H1FY2013 Revenue: 18%


o Monitoring: Cardiac Monitoring, Vital Science Monitoring, Anaesthesia Monitoring, Thermometers

o Treatment: Defibrillation Products

o Diagnostics: Vascular Diagnostic Systems

o Consumables, Accessories and Services

o Vascular: Cardiac Stents, Balloons and accessories

o Orthopedics: Hip Implants, Suction Devices, Surgical Tools Physiotherapy Products

o Urology, Gastroenterology and

Gynaecology: Catheters, Stents, Guidewires, Dilator Sets, Needles, Baskets, Injectors

Group Company BRANDSCompany Overview


Global Product Brands & TrademarksCompany Overview


Quality and cost optimization

Manufacturing FacilitiesCompany Overview

India

USA

Europe


o Move manufacturing lines from high cost locations to cost efficient locations in Malaysia and India

o Keep selective product lines in the US and Europe

o New Asian manufacturing bases to help cater to the fast growing markets in MENA and SEA

o Closer to the growing customer base will enable faster logistics and an efficient supply chain

Malaysia

OEM PortfolioCompany Overview

Water Traps

Fetal Pulse OximeterAgent Gas Bench

Defib Monitor

Aanesthesia Module


Reusable and Disposable Sensors

Digital Thermometers

Vital Signs Monitor

Responder AED Pro

MRI friendly Vital Signs Monitor

Powerheart G3 AED

ECG Board

NIBP Module

AED Pads

NIBP Cuffs

OEM PartnershipsCompany Overview

OEM

• Specialist in SPO2 and

respiratory &

anesthetic

technologies

• Customized full

service solutions

White Label

• Consumables and

accessories for group

purchase

organizations/

distributors

• Aids institutional

Branded Consumables

• Proprietary sensing

technology for SPO2

• Low cost

manufacturing base for

group companies


• Strengthens

relationships to

generate additional

business

bundling

Attractive dynamics of the global med-tech industry

Industry Overview

Market Size Growth Trends

Vit

al

Sig

ns

Mo

nit

or

ing

� Current: $7 bn

� 2016: +$8 bn

� Technological advances

� Ageing population

� Lack of infrastructure in emerging markets

An

es

the

sia

an

d G

as

Mo

nit

or

ing

� Growing safety awareness

Company Overview


An

es

the

sia

an

d G

as

Mo

nit

or

ing

� Current: $4.8 bn

� 2016: +$7.3 bn

� Growing safety awareness

� Technology enhancements

� Government regulation

Pe

rip

he

ral

Va

sc

ula

r

Dia

gn

os

tic

s

� Current: $180 mn

� 2016: $300 mn

� Peripheral Arterial Disease (PAD) awareness

� New detection technologies

Attractive dynamics of the global med-tech industry

Industry Overview

Market Size Growth Trends

Ex

ter

na

l

De

fib

ril

lati

on

� Current: $600 mn

� 2016: $842 mn

� Awareness of the incidence of sudden cardiac arrest

� Increasing government legislation promoting or requiring external defibrillator installation

� Opportunities in the emerging markets

Ca

rdia

c

Mo

nit

or

ing

De

vic

es

� Current: $635 bn

� Broadening global incidence of cardiac disease

� Increasing acceptance of remote and continuous

Company Overview


Ca

rdia

c

Mo

nit

or

ing

De

vic

es

� Current: $635 bn

� 2016: $754 mn

� Increasing acceptance of remote and continuous monitoring technologies

� Opportunities in the emerging markets

Co

ron

ar

y

Ste

nt


� 2016: $6.5 bn

� Dramatic rise in cardiovascular disease

� Acceptance of minimally invasive procedures

� Expansion of Cath Lab infrastructure

Dr

ug

-Elu

tin

g

Ba

llo

on

s


� 2016: $1.3 bn

� Minimally invasive alternative to bypass surgery

� Reduction in risk and cost vs. DES

� Increasing rate of ISR (In-stent Restenosis)

Section 2: Financials


H1FY13 FinancialsCompany Overview

P&L Synopsis

y-o-y H1 y-o-y

FY2013 FY2012 Growth % FY2013 FY2012 Growth %

Sales 607 562 8% 1322 1083 22%

Gross Profit 266 265 0% 584 510 14%

Margin % 44% 47% 44% 47%

EBITDA 162 150 8% 354 298 19%

Margin % 27% 27% 27% 27%

PAT 116 121 -4% 254 238 7%

Margin % 19% 22% 19% 22%

(Rs. Cr.)Q2


Balance Sheet Synopsis

Margin % 19% 22% 19% 22%

Basic EPS 4.80 5.00 -4% 10.49 9.81 7%

30th Sept 31st Mar 30th Sept 31st Mar

Net Fixed Assets 834 754 Equity 1,990 1,699

Goodwill 450 449 Total Debt 1,084 1,172

Long Term 35% 25%

Short Term 65% 75%

(Rs. Cr.)2012 2012

(Rs. Cr.)

Net Current Assets 1,557 1,378

Corporate GovernanceCompany Overview

Shareholding pattern

Note: As of December 31, 2012

Promoters28%

FIIs37%

DIIs2%

Others33%

BSE Code: 532391

NSE Code: OPTOCIRCUI

Shares O/S in Crs: 24.2

Market Cap as on Feb 28, 2013: Rs. 1,205


Strong and experienced management

Key Executive Designation

Vinod Ramnani Chairman and Managing Director

Thomas Dietiker Director, M&A and OEM Business

Jayesh Patel Director, Engineering

A. N. Srinatha Company Secretary

Krishna

SudheendraGroup Chief Financial Officer

Independent board of directors

Board Member Background

Dr. Anvay MulayHOD, Adult Cardiac Surgery at the DhirubhaiAmbani Hospital

Dr. Suleman

Merchant

HOD, Radiology at Lokmanya Tilak MemorialMedical College & Hospital

Dr. William

Walter O' Neill

Executive Dean, Clinical Affairs, the Universityof Miami's Miller School of Medicine

Rajkumar

RaisinghaniIndustrialist

V. Bala

SubramaniamIndependent Finance Professional

SummaryCompany Overview

o India-headquartered medical device enterprise with a global focus on markets – both, developed and emerging

o Diversified product portfolio with an emphasis on devices with consumable components and a long-term increasing demand trend

o Highly efficient global manufacturing and distribution infrastructure supported by focused top- tier management teams for both medical equipment and interventional products

o Leadership position in key product lines secured by broad IP portfolio combined with continuing investment in product development and innovation

o Focus on driving organic growth and maximizing profitability


o Focus on driving organic growth and maximizing profitability

#83, Electronics City

Bengaluru - 560 100

Opto Circuits (India) Ltd.


Bengaluru - 560 100

Karnataka, India

Phone : +91 80 28521040/ 41/ 42 | Fax : +91 80 2852 1094

Web: www.optocircuits.com

Email: [email protected]

opto circuits (india) ltd. 1 presentation_april 2013.pdf · 2014-01-30 · market size growth...

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