MIRA INFORM REPORT

Report Date :

07.04.2012

IDENTIFICATION DETAILS

Name :	HOVIONE FARMACIÃNCIA, S.A.
Registered Office :	Sete Casas, Loures, 2674-506
Country :	Portugal
Financials (as on) :	31.03.2011
Date of Incorporation :	08.04.1959
Com. Reg. No.:	500135495
Legal Form :	Public Subsidiary
Line of Business :	Engaged in production of medicinally active substances
No. of Employees :	539

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Portugal	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name and address

Hovione Farmaciência, S.A.

Sete Casas
Loures, 2674-506
Portugal
Tel:	+351 219829000
Fax:	+351 219836801

Employees:	539
Company Type:	Public Subsidiary
Corporate Family:	2 Companies
Ultimate Parent:	Hovione Holding Ltd.
Incorporation Date:	08-Apr-1959

Fiscal Year End:	31-Mar-2011
Reporting Currency:	Euro
Annual Sales:	99.1
Total Assets:	132.5

Business Description

Hovione Farmaciência, S.A. is primarily engaged in production of medicinally active substances to be used for their pharmacological properties in the manufacture of medicaments; and processing of blood. This class also includes: manufacture of chemically pure sugars; and processing of glands and manufacture of extracts of glands, etc.

Industry

Industry	Biotechnology and Drugs
ANZSIC 2006:	1841 - Human Pharmaceutical and Medicinal Product Manufacturing
NACE 2002:	2441 - Manufacture of basic pharmaceutical products
NAICS 2002:	32541 - Pharmaceutical and Medicine Manufacturing
UK SIC 2003:	2441 - Manufacture of basic pharmaceutical products
US SIC 1987:	2834 - Pharmaceutical Preparations

Key Executives

Name	Title
Guido Villax	Chief executive officer
João Sousa	Financial director
Pedro Gomes	Marketing manager
Rui Cardoso	Purchasing manager
Alberto Mesquita	Accountant

Registered No.(PRT)

500135495

Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7571683

Balance Sheet Item Exchange Rate: USD 1 = EUR 0.704672

Corporate Overview

Hovione Farmaciência, S.A.

Location
Sete Casas
Loures, 2674-506
Loures County
Portugal

Tel:	+351 219829000
Fax:	+351 219836801

Sales EUR(mil):	75.1
Assets EUR(mil):	93.4
Employees:	539
Fiscal Year End:	31-Mar-2011

Industry:	Biotechnology and Drugs

Incorporation Date:	08-Apr-1959
Company Type:	Public Subsidiary
Quoted Status:	Not Quoted
Registered No.(PRT):	500135495

Chief executive officer:	Guido Villax

Industry Codes

ANZSIC 2006 Codes:
1841	-	Human Pharmaceutical and Medicinal Product Manufacturing

NACE 2002 Codes:
2441	-	Manufacture of basic pharmaceutical products

NAICS 2002 Codes:
32541	-	Pharmaceutical and Medicine Manufacturing

US SIC 1987:
2834	-	Pharmaceutical Preparations

UK SIC 2003:
2441	-	Manufacture of basic pharmaceutical products

Business Description

Hovione Farmaciência, S.A. is primarily engaged in production of medicinally active substances to be used for their pharmacological properties in the manufacture of medicaments; and processing of blood. This class also includes: manufacture of chemically pure sugars; and processing of glands and manufacture of extracts of glands, etc.

Financial Data

Financials in:	EUR(mil)
Revenue:	75.1
Assets:	93.4
Current Assets:	40.7
Total Liabilities:	93.4
Issued Capital:	13.8
Net Worth:	30.2
Date of Financial Data:	31-Mar-2011

1 Year Growth

12.8%

NA

Key Corporate Relationships

Bank:

Banco Espirito Santo, Caixa Geral De Depósitos, Banco Bpi

Corporate Structure News:
	Hovione Farmaciência, S.A.
Hovione Farmaciência, S.A. Total Corporate Family Members: 2

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Hovione Holding Ltd.	Parent
Hovione Farmaciência, S.A.	Subsidiary	Loures	Portugal	Biotechnology and Drugs	99.1	539

Executives Report

Board of Directors

Name	Title	Function
Miguel Calado	Member of the board of directors	Director/Board Member
Noé Conceição	Member of the board of directors	Director/Board Member
LuÃs Gomes	Member of the board of directors	Director/Board Member
Peter Villax	Member of the board of directors	Director/Board Member
Francisco Zeller	Member of the board of directors	Director/Board Member

Executives

Name	Title	Function
Guido Villax	Chief executive officer	Chief Executive Officer
Colin Minchom	Vice President - Particle Design Business Unit	Division Head Executive
João Sousa	Financial director	Finance Executive
Alberto Mesquita	Accountant	Accounting Executive
Ana Ferreira	Personnel manager	Human Resources Executive
Pedro Gomes	Marketing manager	Marketing Executive
Roger Viney	Commercial director	Commercial Executive
Rui Cardoso	Purchasing manager	Purchasing Executive
João Augusto	Executive	Other
Diane Villax	Executive	Other

Annual Profit & Loss

	31-Mar-2011	31-Mar-2010	31-Mar-2009
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.757168	0.70861	0.707647
Consolidated	No	No	No
Total income	115.1	109.6	110.2
Net sales	99.1	93.9	90.5
Change in stock	2.5	-1.0	-0.8
Own work capitalised	1.5	2.4	1.2
Subsidies for operating costs	0.2	-	-
Supplementary operating income	-	0.1	0.0
Other operating income	8.9	5.2	8.2
Cost of goods sold	44.4	40.9	35.1
Cost of sales	44.4	40.9	35.1
Service costs	19.1	20.0	18.2
Total payroll costs	28.0	28.7	26.7
Fixed asset depreciation and amortisation	4.2	7.4	7.7
Other operating costs	11.4	0.5	0.7
Total financial income	2.8	8.6	10.3
Total expenses	3.7	10.4	11.6
Profit before tax	4.4	0.5	5.1
Extraordinary income	-	0.6	0.7
Extraordinary expenses	-	0.6	4.5
Other taxes	-	0.6	0.5
Total taxation	-0.4	-2.6	-1.2
Net profit	4.7	3.1	6.3

Annual Balance Sheet

Financials in: USD (mil)

	31-Mar-2011	31-Mar-2010	31-Mar-2009
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.704672	0.739044	0.753182
Consolidated	No	No	No
Issued capital	19.5	18.6	18.3
Surplus of revaluation	-	1.3	1.3
Available reserves	-	-0.5	-0.8
Total reserves	2.2	1.0	0.7
Profits for the year	5.1	3.0	5.9
Profit brought forward from previous year(s)	12.1	10.0	4.2
Capital subsidies and grants	3.9	0.5	0.5
Total stockholders equity	42.8	34.0	30.1
Other long-term liabilities	48.5	47.3	43.6
Trade creditors	12.6	11.1	14.1
Bank loans and overdrafts	13.6	-	1.3
Debts on fixed assets	-	0.9	1.0
Taxes	1.1	0.8	0.7
Other current liabilities	10.0	0.0	0.0
Total current liabilities	37.3	12.8	17.1
Total debts	89.7	73.4	71.5
Regularisation account	3.9	13.3	10.9
Total liabilities (including net worth)	132.5	107.4	101.7
Intangibles	6.7	18.1	16.2
Land	-	1.7	1.6
Buildings	-	26.6	25.6
Machinery and tools	-	0.5	0.5
Fixtures and equipment	-	127.4	118.4
Furniture and vehicles	-	13.2	12.6
Other fixed assets	-	11.2	8.7
Total tangible fixed assets	60.4	180.7	167.4
Other financial assets	0.0	0.0	0.0
Receivables due after 1 year	-	2.3	2.3
Depreciation and amortisation	-	-137.6	-128.4
Raw materials	-	10.5	7.8
Work in progress	-	-	1.7
Finished goods	-	8.3	9.2
Merchandise	-	0.1	0.0
Fixed assets for sale	-	-0.8	-1.3
Prepayments	0.1	0.0	0.1
Net stocks and work in progress	21.8	18.1	17.3
Trade debtors	12.0	13.3	15.9
Other receivables	2.3	1.2	1.0
General accounts	-	1.1	2.8
Doubtful receivables	-	-	-0.1
Cash and liquid assets	-	0.0	0.0
Money on deposit at bank(s)	20.2	1.8	0.6
Recoverable taxation	1.4	1.6	3.0
Total current assets	57.7	37.0	40.6
Prepaid expenses and deferred costs	7.6	6.9	3.6
Total assets	132.5	107.4	101.7

Annual Ratios

Financials in: USD (mil)

	31-Mar-2011	31-Mar-2010	31-Mar-2009
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.704672	0.739044	0.753182
Consolidated	No	No	No
Current ratio	1.40	2.90	2.40
Acid test ratio	0.90	1.50	1.40
Total liabilities to net worth	0.48%	0.46%	0.42%
Net worth to total assets	0.32%	0.32%	0.30%
Current liabilities to net worth	0.82%	0.38%	0.57%
Current liabilities to stock	1.61%	0.71%	0.99%
Fixed assets to net worth	1.75%	1.87%	1.91%
Collection period	41.00	53.70	68.10
Stock turnover rate	4.90	5.00	4.90
Asset utilisation	1.24%	1.19%	1.20%
Creditors to sales	84.20	81.60	84.10
Asset turnover	0.80%	0.84%	0.84%
Profit margin	0.05%	0.03%	0.07%
Return on assets	0.04%	0.03%	0.06%
Shareholders' return	0.12%	0.09%	0.20%
Sales per employee	139.28	123.43	118.81
Profit per employee	6.66	4.10	8.27
Return on capital	0.06%	0.04%	0.08%
Net worth	42.8	34.0	30.1
Number of employees	539	539	539

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.04
UK Pound	1	Rs.81.08
Euro	1	Rs.67.39

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.