Hikma Pharmaceuticals Plc · LSE:HIK

Hikma Pharmaceuticals — Merger or Acquisition (December 2007)

18 slides from Hikma Pharmaceuticals's merger presentation, Dec 10, 2007

  1. Slide 1: Acquisition of Arab Pharmaceutical Manufacturing (APM) Investor Presentation

    AUK002UE7 HIKMA PHARMACEUTICALS PLC ACQUISITION OF ARAB PHARMACEUTICAL MANUFACTURING (“APM”) INVESTOR PRESENTATION 10 DECEMBER 2007

  2. Slide 2: Disclaimers

    Disclaimers „ This presentation has been prepared and is the sole responsibility of Hikma Pharmaceuticals plc (“Hikma” or the “Company”), and solely for use as a presentation in relation to the proposed acquisition of Arab Pharmaceutical Manufacturing (the "Acquisition" and “APM”). Some of the infor

  3. Slide 3: Hikma's Acquisition of APM

    Hikma’s Acquisition of APM Agenda Presenters „ Transaction overview Said Darwazah CEO „ Strategic rationale „ Financial summary Bassam Kanaan CFO Page 3

  4. Slide 4: Transaction Overview

    AUK002UE7 TRANSACTION OVERVIEW

  5. Slide 5: Transaction overview

    Transaction overview „ Hikma will acquire 100% of Arab Pharmaceutical Manufacturing Co. (“APM”) for JOD 5.80 per share „ Offer values the entire issued share capital of APM at $163.6 million Key terms „ Represents: „ EV/2006 sales multiple of 4.0x „ EV/2006 EBITDA multiple of 16.6x „ 2006 P/E multip

  6. Slide 6: Overview of APM

    Overview of APM „ Develops, manufactures and markets own branded Geographic breakdown – 2006 Yemen generics and selected in-licensed products Iraq 4% 5% „ 3rd largest pharma company in Jordan Other Jordan 16% 32% „ 2006 sales of $41.0 million „ Three manufacturing facilities in Jordan UAE „ Exports

  7. Slide 7: Strategic Rationale

    AUK002UE7 STRATEGIC RATIONALE

  8. Slide 8: Strong strategic rationale

    Strong strategic rationale „ Enhances Hikma’s presence in the fast growing MENA region „ Consolidates Hikma’s domestic Jordanian position „ Brings a high quality and complementary product portfolio „ Adds an attractive range of in-licensed products „ Significantly enhances Hikma’s product developmen

  9. Slide 9: APM enhances Hikma's presence in the fast growing MENA region

    APM enhances Hikma’s presence in the fast growing MENA region Saudi Arabia (2006 sales in $ million)(1) „ APM has operations in 14 MENA countries 60 APM Contribution :+42.7% 50.8 50 „ Acquisition will strengthen Hikma’s market 40 position in Jordan, Saudi Arabia and the 30 35.6 other Gulf Cooperatio

  10. Slide 10: Consolidates Jordanian market position

    Consolidates Jordanian market position 2006 Jordanian Sales(1) „ Unique opportunity to strengthen footprint in the Jordanian pharmaceutical market $m 40 „ Hikma’s market share will more than double that 30 13.1 of its nearest competitor 20 10 19.1 19.1 0 „ Access to new therapeutic areas and strong

  11. Slide 11: APM has a high quality and complementary portfolio

    APM has a high quality and complementary portfolio „ APM currently markets 106 products in 221 dosage strengths and forms „ Enhances Hikma’s capabilities in Anti-Infectives, Diabetes, Cardiovascular and Oncology „ Brings excellent portfolio of in-licensed products, including Actos®, Takeda’s blockbu

  12. Slide 12: APM significantly enhances Hikma's product development pipeline

    APM significantly enhances Hikma’s product development pipeline „ Adds attractive focus on niche areas New products under development „ Diabetes „ Dermatologicals (1) 35 106 „ Oncology „ APM’s oncology portfolio complements Hikma’s expansion into this area APM Hikma „ Provides additional R&D capabil

  13. Slide 13: Creates a combined sales force of over 1,000

    Creates a combined sales force of over 1,000 MENA sales and marketing staff(1) „ Hikma: 15 „ Hikma: 268(2) „ Hikma: 31 „ Hikma: 109 „ APM: 10 „ Mkt growth: 18.4% „ APM: 5 „ APM: 94 „ Mkt. growth: 1.0% „ Mkt. growth: 5.9% Tunisia Lebanon „ Hikma: 121 Jordan Gulf „ Hikma: 46 Algeria States „ APM: 11 L

  14. Slide 14: High quality manufacturing capacity with broad capabilities

    High quality manufacturing capacity with broad capabilities „ Strengthens Hikma’s Tablets Ampoules manufacturing capabilities in Sahab MENA region plant Capsules Capsules/Penicillin „ High quality Suspension Non Penicilliin „ Low cost „ Close to key markets Dry suspension penicillin „ Pro forma Hikm

  15. Slide 15: Financial Overview

    AUK002UE7 FINANCIAL OVERVIEW Bassam Kanaan

  16. Slide 16: Financial summary

    Financial summary „ Slightly earnings accretive in 2008, on a cash EPS basis(1) „ One-off integration costs of approximately $3 million „ Significant revenue synergies „ Introducing APM products into new markets, particularly Egypt and Algeria „ Expanding Hikma’s production capacity and improving op

  17. Slide 17: Pro forma financials

    Pro forma financials Hikma APM(1) Pro Forma Impact(2) ($ million) 2006 H1 2007 2006 H1 2007 2006 H1 2007 2006 H1 2007 Revenue 317.0 224.9 41.0 25.4 358.0 250.3 +12.9% +11.3% Yr-on-yr growth 20.9% 45.2% -1.4% 12.2% Operating profit 75.2 51.8 8.0 5.1 83.2 56.9 +10.6% +9.8% Operating margin 23.7% 23.0%

  18. Slide 18: Q&A

    AUK002UE7 Q&A

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