IDLC - Investment Insight Glaxo SmithKline Bangladesh Ltd.

July 21, 2011

Company Summary (DSE: GLAXOSMITH) 52-week Price Range (BDT) Current Price (21.07.2011 ) Trailing PE (LTM)* Total Number of Share (mn) Free Float (%) Free Float in Number of Shares (mn) Average Daily Volume (Last 1 Year)
[LTM*= Latest 12 Month]

Company Profile
648 - 1580 992 26.97 12.05 18% 2.17 14,404

Particulars (mn BDT) Revenue Gross Profit Operating Profit Net Profit After Tax Profitability (%) Gross Profit Margin Operating Margin Net Profit Margin Growth (%) Net Revenue Growth Operating Profit Growth NPAT Growth Per Share (BDT) Diluted EPS BVPS CFPS Declaration Cash Dividend Stock Dividend Right Share Issue Other (%) Debt/Equity Debt/ Asset ROA ROE Historical P/E Sl. No. 1 2 3 4 5 Company Name

2008 1888.11 471.67 212.63 142.95 2008 24.98% 11.26% 7.57% 2008 18.82%

2009 3023.67 944.28 431.86 323.79 2009 31.23% 14.28% 10.71% 2009 60.14%

2010 3632.10 1242.35 535.60 410.18 2010 34.20% 14.75% 11.29% 2010 20.12% 24.02% 26.68% 2010 34.05 114.65 51.07 2010 200% 2010 0.00 21% 32% 33.17 Trailing P/E (21.07.2011) 24.02 24.45 22.54 26.97 25.53 24.70

Glaxo Smith started its operation in Bangladesh as a branch of Glaxo Laboratories (Pakistan) in 1949. Later, after liberation, Glaxo Bangladesh Ltd. was formed in 1974 from the abandoned properties of Glaxo Laboratories Ltd. (Pakistan). It was listed in DSE in 1976. In 1995, after acquisition by Burroughs Wellcome, it was named as Glaxo Wellcome. Finally in 2002, following the global Mega merger with SmithKline Beecham, the firm was renamed as Glaxo SmithKline Bangladesh Limited. 81.98% of total shares are held by its sponsor, SetFirst Ltd., UK, which is 100% owned by Glaxo SmithKline plc, UK. GLAXOSMITH manufactures and markets pharmaceuticals products as well as Healthcare Products. 99% of its revenue is generated from local market sales of Pharmaceuticals products, contract manufacturing and Sales of Consumer Healthcare products. Key Revenue Drivers Core revenue drivers for GLAXOSMITH are Pharmaceuticals and consumer healthcare products. The company is growing in its consumer healthcare business, as the share of consumer healthcare in total revenue has increased from 23% (2008) to 54% (2010), while that of Pharmaceuticals has decreased from 76% (2008) to 45% (2010). As of 2010, its market share was 85% in Consumer Healthcare. Company Insight GLAXOSMITH has been experiencing increased revenue growth in Consumer Healthcare products, along with below industry average growth in Pharmaceuticals products. During 2008-2010, consumer healthcare product line achieved a growth of 110.8% per annum, mainly due to highly successful marketing campaign of Horlicks. In the pharmaceuticals business, GLAXOSMITH has strong presence in a few segments, including Vaccines (Market share of 80% in 2010), and Dextrose (Market share of 91% in 2010). However, due to slow growth nature of its segments, the company has been experiencing below industry average growth in pharmaceuticals. Financial Performance After a robust growth of 60.14% in 2009, GLAXOSMITHs revenue growth normalized to 20.12% in 2010. Operating performance saw a slight improvement, as gross profit margin increased by 3.0%, and operating profit margin increased by 0.5%. Net profit margin also increased by 0.6%. The financials reflect GLAXOSMITHs good growth in consumer healthcare and stable presence in the pharmaceuticals industry, which itself is enjoying a good growth in recent times. Recently, the company has reported net profit after tax of BDT 159.85 million with Diluted EPS of BDT 13.27 for the period of three months (Jan'2011 to March'2011) ended on 31.03.2011.

168.94% 103.11% 217.33% 126.51% 2008 11.87 75.72 5.49 2008 60% 2008 0.00 12% 17% 27.81 2009 26.88 96.60 37.68 2009 160% 2009 0.01 21% 31% 26.98

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