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Welcome to India’s First Multi-National Seed Company September 2008

Welcome to India’s First Multi-National Seed Company September 2008

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Page 1: Welcome to India’s First Multi-National Seed Company September 2008

Welcome to

India’s First Multi-National Seed Company

September 2008

Page 2: Welcome to India’s First Multi-National Seed Company September 2008

Advanta - A Global Company

Subsidiaries of AdvantaCountries where Advanta products are used

Page 3: Welcome to India’s First Multi-National Seed Company September 2008

Board of Directors

JAI R. SHROFF (42)

Chairman

• CEO of United Phosphorus Limited• Managing new projects & ventures

Dr.VASANT GANDHI (54)

Independent Director

• Alumnus of IIM Amedabad and Stanford University• Worked with NDDB, Stanford University, the World Bank

and the International Food Policy Research Institute• Currently Professor at IIM Ahmedabad

VINOD SETHI (46)Independent

Director

• Alumnus of IIT Bombay & Stern Graduate School of Business

• Served as CIO at Morgan Stanley for 12 years

V. R. KAUNDINYA (52)

Managing Director

• Graduate in Agriculture, and IIM (A) alumnus in Agri-business

• Over 26 Years of experience in agriculture industry

VIKRAM R. SHROFF (35)

Non-Executive Director

• Graduate in Chemistry and Harvard Business School alumnus

• Responsible for human resource planning, purchase, commercial, marketing & production at United Phosphorus Limited

• Alumnus of Kellogg School of Management• Ex-chairman of Cargill India• Currently on the Board of Punjab Tractors Ltd

HARDEEP SINGH (54)

Independent Director

Page 4: Welcome to India’s First Multi-National Seed Company September 2008

A World Class Advisory Board of Advanta

Name BackgroundFelipe Osorio Colombian citizen - 20 years experience with

agricultural input industry in USA, Latin America and Asia – last 14 years with Monsanto – now heads Alianza TEAM in Colombia

Dr. Ganesh Kishore US Citizen –former Chief Biotechnology Officer at DuPont - Former Chief Biotechnologist and President, Nutrition Sector, Monsanto Company- 27 years experience in biotech & seed industry and inventor of major Ag traits.

Sam Dryden US citizen – investor and developer of Life Sciences ventures with particular application, scale & commercialization of early stage technologies-currently Managing Director of Wolfensohn & Co focusing on private equity investments in biofuels and alternate energy technologies – CEO of Emergent Genetics LLC

Jonathan Malkin US Citizen – 20 years experience in Ag germplasm – Founder & Managing General partner of ATP Capital LP, a private equity fund

Page 5: Welcome to India’s First Multi-National Seed Company September 2008

Global Organization Structure

Board of Directors

Jorge Mouto

us

BusinessHead

Argentina

Pacholk Pongpani

ch

Business Head

Thailand

Howard

Morris

Strategy & Business

Development

Chris Bazley

Business Head

Australia

Alberto

Leon

Business Head

NUTRISUN

Business Head India

Sateesh

Hegde

Business Head

Vegetables

TBH

Supply Chain Head

Legal Head

HR HeadChief

Financial Officer

Research Head

International

PM Nanjappa

Manoj Gupt

a

Jocelyn Davey

Alan ScottRavi Reddy

Regional Business Managers

CEO V.R. Kaundinya

Page 6: Welcome to India’s First Multi-National Seed Company September 2008

Our Geographies

• We have operations in 4 continents & 5 countries

• Our exports go into 25 other countries

Country %

Australia 26

India 25

International 16

Thailand 12

Argentina 11

USA 10

Total 100

Country-wise Contribution 2008

Page 7: Welcome to India’s First Multi-National Seed Company September 2008

Our Core Crops

Global : Sorghum, Sunflower, Tropical Corn and Vegetables

Regional : Rice, Cotton and Brassicas

%

Sorghum 29

Sunflower 21

Vegetables 18

Corn 13

Canola 11

Others 08

Crop-wise Contribution 2008

Total 100

Page 8: Welcome to India’s First Multi-National Seed Company September 2008

Success Strategy

Research & Development

• Depth• Variety

Germplasm

• Quality• Experience

Breeding Program Biotechnology

• Traits• Molecular Markers• Techniques

Production, Brand & Distribution

+

Page 9: Welcome to India’s First Multi-National Seed Company September 2008

Convergence of Technologies

Demand + Available Land Yield

Genetic Potential

Preservation of Yield

Increasing income levels &Growing Awareness

CharacteristicOutput Traits

Technology

+ +

Cost EffectivenessOptimum use of resources

- Water - Nutrients - Land - Manpower

Desired Characteristics- Quality

Page 10: Welcome to India’s First Multi-National Seed Company September 2008

Sorghum in Advanta

• Currently the largest crop in Advanta

• Total tonnage about 20000 tons

• USA, Argentina and Australia contribute 25% each

• Major breeding programs in USA, Australia and Argentina

• Molecular marker facility

• Recently entered US markets through Garrison & Townsend acquisition

• Bio-energy initiative launched with sweet sorghum

Page 11: Welcome to India’s First Multi-National Seed Company September 2008

Sunflower in Advanta

• Currently the second largest crop in Advanta

• Total tonnage about 5500 tons

• Argentina (40%) and International (30%) : major contributors

• Major breeding programs in Argentina, Australia and India

• Molecular marker facility in Argentina

• Nutrisun project

Page 12: Welcome to India’s First Multi-National Seed Company September 2008

Nutrisun

Breakthrough Non Genetically Modified technology in Sunflower Hybrids developed by Advanta• Combines mutagenesis, plant breeding and molecular marker know-how

• Sunflower hybrid seed products with a highly beneficial oil profile• Fatty acids in SUNSAT oil (stearic, oleic and linoleic acids) have the propensity to lower

“bad” cholesterol (LDL) and to be neutral or increase “good” cholesterol (HDL)

• Solid fat at room temperature

• Global application with full control of the intellectual property

Currently under the pre-commercial stage

• Extremely favourable reaction from major food producers across the world

• Hybrids are currently being produced in Argentina

Commercial introduction expected by 2009

Nutrisun is expected to find application in margarines, spreads, frying

oil, cooking, baking, confectionery, and cocoa butter alternatives

Page 13: Welcome to India’s First Multi-National Seed Company September 2008

Corn in Advanta

• Total tonnage about 9000 tons

• India contributes 40% & Thailand 20%

• Major breeding programs in Thailand, India and Australia

• Molecular marker facility

• Expansion planned in Latin American markets

• BT Corn introduction in Argentina

• 2 new hybrids registered each in Indonesia and Brazil

Page 14: Welcome to India’s First Multi-National Seed Company September 2008

Rice in Advanta

• Strong product portfolio in India - PAC 801 & PAC 832 well accepted in the market

- Swarna -1 & Swarna -2 launched last year

- Pac 807, PAC 809 & PAC 837 launched in 2008

• PAC 807 registered in Vietnam

• Registration trials initiated in Indonesia, Philippines,

Bangladesh, Burma and Pakistan

• Research facilities established in Vietnam & Indonesia

• Member of the IRRI’s HRDC Consortium

Page 15: Welcome to India’s First Multi-National Seed Company September 2008

Advanta had an eventful year 2007

• First full year of operations since acquisition by UPL

• Now a 100M$ company

• Successful IPO

• Significant organizational changes

• 3 acquisitions

• First entry into vegetables sector

• First sale of transgenic crops: corn & cotton

• Hybrid Mustard introduction in India

• Enhanced research investments

• Excellent growth in all markets

• Nutrisun on its way to 2009 launch:

- Two MOUs signed during the year

• Major progress with China, US and Brazil

Page 16: Welcome to India’s First Multi-National Seed Company September 2008

Advanta : Acquisitions

Total investment of 65M$

Company Country Crop From

1 Longreach Australia Wheat Syngenta

2 Golden India Vegetables Promoters

3 Unicorn India Vegetables Promoters

4 Garrison Townsend

USA Sorghum Promoters

Completed FIVE acquisitions in last two

years

5 Acquired Sunflower business from Limagrain In USA

Page 17: Welcome to India’s First Multi-National Seed Company September 2008

Financials

Page 18: Welcome to India’s First Multi-National Seed Company September 2008

Financials

Mutual Funds / UTI

4.70%

Bodies Corporate3.22%Foreign Institutional

Investors21.90%

Indian Public

4.10%

NRIs / OCBs

6.03%

Promoter

59.94%

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Apr - Mar 06 Dec-06 Dec-07

Year

Per

cen

tag

e %

Debt – Equity Ratio

Page 19: Welcome to India’s First Multi-National Seed Company September 2008

Financials

11.016.9Net profit / Sales (%)

0.70:13.94:1Debt - Equity Ratio

269.25130.9Book Value Per Share

28.1729.0Diluted Earnings Per Share of Rs. 10/-

4532.71099.6Net Worth

5221.93950.5Net Fixed Assets

5990.64620.1Gross Fixed Assets

453.8483.9Profit after Tax and Minority Interest

818.8560.0EBDITA (Excluding Extra – Ordinary Items)

818.8793.0Earnings Before Depreciation, Interest, Amortization and Tax (EBDITA)

5131.33217.0Total Income

4242.42916.3Sales/ Income from Operations

Jan - Dec 2007

Jan - Dec 2006

Accounting Year

CONSOLIDATED FINANCIAL HIGHLIGHTS AT A GLANCE FOR LAST 2 YEARS

Rs. in Millions

Page 20: Welcome to India’s First Multi-National Seed Company September 2008

RELATIVE PERFORMANCE OF ADVANTA INDIA LIMITED

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1400.00

Apr

-07

May

-07

Jun-

07

Jul-

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-07

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-07

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-07

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-07

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-07

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van

ta S

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e P

rice

0.00

3000.00

6000.00

9000.00

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15000.00

18000.00

21000.00

BS

E S

ense

x

Advanta BSE - Sensex

Financials

RELATIVE PERFORMANCE OF ADVANTA INDIA LIMITED

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

Apr

-07

May

-07

Jun-

07

Jul-

07

Aug

-07

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-07

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-07

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-07

Dec

-07

Ad

van

ta S

har

e P

rice

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6000.00

7000.00

NS

E -

Nif

ty

AdvantaNSE - Nifty

Page 21: Welcome to India’s First Multi-National Seed Company September 2008

Advanta : Biotech Traits Access

Company Country Crop Traits

1 Monsanto Australia & Argentina Canola & Corn RoundupReady & YieldGard

2 Nath/Chinese India Cotton Fusion Bt

3 BASF Australia , Thailand & Argentina

Canola, Corn & Sunflower

Clearfield

Page 22: Welcome to India’s First Multi-National Seed Company September 2008

Sweeping Changes in the world

The World of agriculture is undergoing major changes• Biotechnology Traits

• Value Added Crops

• Value transfer between agrochemicals and seeds

• Global Consolidation of industry

• IP protection laws

Technologies that are likely to come to India in the next ten years• Herbicide Tolerance

• Drought Tolerance

• Nitrogen Use Efficiency

• Healthy Oils

• Higher Yield

• Feed Nutrition enhancement

Page 23: Welcome to India’s First Multi-National Seed Company September 2008

Value Transfer into Seed

SEEDS

Human Health

Water & Soil

Nutrients

Crop Chemicals

AnimalNutrition

Page 24: Welcome to India’s First Multi-National Seed Company September 2008

Challenges for Agri Input Industry

• Increased seed prices due to enhanced value

• Enforcement of new IP Laws

• Delivery of product to farmer (Channel)

• Value Capture

• Contract farming models

• Consolidation in industry

• Technology Stewardship

- Stakeholders’ education on new technologies

- Management of risk for farmer

- Procurement system & trait tracking

Page 25: Welcome to India’s First Multi-National Seed Company September 2008

Advanta has a Promising Agenda for 2008

• Expected revenue growth of 35%

• New products: RR Canola in Australia

• New geographies: Brazil, China, US, Indonesia

• Nutrisun to forge commercial links

• Global supply chain function

• Expansion of Vegetable seed business

• Bioenergy project with sweet sorghum

• Biotech investments

• Exploring Synergies with UPL in India and some other countries

Page 26: Welcome to India’s First Multi-National Seed Company September 2008

Regional Business Growth driven by Select Crops

Future Business Strategy

Continue investment in breeding and Technology

International Expansion : Asia / Latin America / CIS

Leverage low cost strengths of India in production and research

Selective acquisitions in core crops and geographies

Page 27: Welcome to India’s First Multi-National Seed Company September 2008

THANK YOU