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Welcome to
India’s First Multi-National Seed Company
September 2008
Advanta - A Global Company
Subsidiaries of AdvantaCountries where Advanta products are used
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
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
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
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
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
Success Strategy
Research & Development
• Depth• Variety
Germplasm
• Quality• Experience
Breeding Program Biotechnology
• Traits• Molecular Markers• Techniques
Production, Brand & Distribution
+
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
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
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
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
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
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
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
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
Financials
Financials
Mutual Funds / UTI
4.70%
Bodies Corporate3.22%Foreign Institutional
Investors21.90%
Indian Public
4.10%
NRIs / OCBs
6.03%
Promoter
59.94%
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Apr - Mar 06 Dec-06 Dec-07
Year
Per
cen
tag
e %
Debt – Equity Ratio
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
RELATIVE PERFORMANCE OF ADVANTA INDIA LIMITED
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BS
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Advanta BSE - Sensex
Financials
RELATIVE PERFORMANCE OF ADVANTA INDIA LIMITED
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1400.00
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NS
E -
Nif
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AdvantaNSE - Nifty
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
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
Value Transfer into Seed
SEEDS
Human Health
Water & Soil
Nutrients
Crop Chemicals
AnimalNutrition
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
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
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
THANK YOU