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 Pharmas 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 Roches 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, Beximcos 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 59% over 2008.

registered in

12

countries Export turnover grew

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 Authorized Capital Paid up Capital Total Sales Export Sales Gross Margin Profit Before Tax Net Profit Fix Assets (Gross) Shareholders Equity

2009 9100000 1511493 4868255 272126 2302048 867467 624740 15621366 10885707

2008 2000000 1259577 4010167 170604 2007296 714121 545341 14291850 10450202

2007 2000000 1145070 3597025 122752 1629515 399678 353068 10516030 8250940

2006 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. ASSETS Non - Current Assets Property, Plant And Equipments - Carrying Value Intangible Assets Investment In Share Current Assets Inventories Spares & Supplies Accounts Receivable Loans, Advance & Deposits Short Term Investment Cash & Cash Equivalent TOTAL ASSETS SHAREHOLDERS' EQUITY & LIABILITIES Shareholders' Equity Issued Share Capital Share Premium Excess Of Issue Price over Face Value Of GDRs Capital Reserve On Merger Revaluation Surplus Retained Earnings Non - Current Liabilities Long Term Borrowings- Net Off Current Maturity (Secured) Fully Convertible, 5% Dividend, Preference Share Liability Of Gratuity & WPPF Deferred Tax Liability Current Liabilities & Provisions Short Term Borrowings Long Term Borrowings- Current Maturity Creditors & Other Payables Accrued Expenses Dividend Payable Income Tax Payable TOTAL LIABILITIES & SHAREHOLDERS EQUITY 12975195529 12966587178 5726525 2881826 6916737893 1722953284 242034855 694111730 699204450 2500000000 1058433574 19891933422 65.2 65.2 0.03 0.01 34.8 8.7 1.2 3.5 3.5 12.6 5.3 100.0 11957773787 11921072697 0 36071090 2861891654 1505288093 234530326 503916401 544509106 0 73647728 14819665441 80.69 80.44 0.24 19.31 10.16 1.58 3.40 3.67 0 0.50 100 Change % 2008 Tk. Change %

10885706614 1511492960 1489750000 1689636958 294950950 1617361714 4282514032 6684775166 1924933065 4100000000 307425614 352416487 2321451642 1451326354 308820056 409898122 79094905 1727724 70584481 19891933422

54.7 7.6 7.5 8.5 1.5 8.1 21.5 33.6 9.7 20.6 1.5 1.8 11.7 7.3 1.5 2.1 0.4 0.0 0.3 100.0

10450202145 1259577470 1489750000 1689636958 294950950 1711174747 4005112020 1767431029 1446600500 0 274419253 46411276 2602032267 1461666227 648165841 263176822 81776450 3169568 144077359 14819665441

70.52 8.50 10.05 11.40 1.99 11.55 27.03 11.93 9.76 0 1.85 0.31 17.56 9.86 4.37 1.78 0.55 0.02 0.97 100

BEXIMCO PHARMACEUTICALS LIMITED Profit and Loss Account For The December 31st 2009
Increase Or ( Decrease) During 2009 Amount Percent 858087840 563335445 294752411 292264848 61728264 230536544 2487563 198299869 39773694 21.4 28.1 14.7 29 40.2 27 0.25 28885.2 15.9

Net sales Revenue Cost Of Goods Sold Gross Profit Operating Expenses: Administrative Expenses Selling, Marketing And Distribution Expenses Profit From Operation Other Income Finance Cost Profit Before Contribution To WPPF Contribution To Workers Contribution / Welfare Fund Profit before Tax Income Tax Expense Current Tax Deferred Tax (Expense) / Income Profit After Tax Transferred To Statement Of Changes In Equity Earnings Per Share (Of Tk.10 Each) (Adjusted EPS Of 2008) Number Of Share Used To Complete EPS

2009 Tk. 4868254915 (2566206626) 2302048289 (1300765878) (215192547) (1085573331) 1001282411 198986379 (289427992) 910840798

2008 Tk. 4010167057 (2002871181) 2007295878 (1008501030) (153464283) (855036787) 998794848 686510 (249654298) 749827060

161013738

21.5

(43373371) 867467427 (242727120) 0 (242727120)

(35706050) 714121010 (168779737) (173720430) 4940693

7667321 153346417 73947365 (173720430) 237786427

21.5 21.5 21.5

4812.8

624740307 4.13

545341273 3.61

79399034 0.52

14.6 14.4

151149296

151149296

Financial Overview in graphs

BEXIMCO PHARMACEUTICALS LIMITED Ratio Analysis

2009 2008

Liquidity Ratio:
Current Ratio Acid test (Quick) Ratio Receivable Turnover Inventory Turnover 2.98:1 1.83:1 8.13 Times 1.59 Times 1.1:1 0.22:1 7.99 Times 1.35 Times

Profitability Ratio:
Profit Margin Asset Turnover Return On Assets Return On Common Stockholders Equity Earnings Per Share (EPS) Price-Earning( P-E) Ratio Payout Ratio 12.8% 0.28 Times 3.6% 5.9% Tk. 4.13 37.72 Times 20.39% 13.6% 0.30Times 4.1% 5.8% Tk. 3.61 46.45 Times 10.52%

Solvency Ratio:
Debt To Total Assets Ratio Time Interest Earned 45.28% 3.49Times 29.48% 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 Stockholders 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