Q2 & H1 FY2013 Investor Update

November 15, 2012

Disclaimer
Statements made in this Investor Update describing the Companys objectives, projections, estimates, expectations may be Forward-looking Statements within the meaning of all applicable laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic and overseas markets in which the Company operates, changes in government regulations, tax laws and other statutes and other incidental factors.

H1 FY2013 Summary
Half-yearly Performance
Consolidated Performance Highlights: H1FY2013 vs. H1FY2012

Sales increased by 22% to Rs. 1322 crore o Non Invasive segment sales increased 21%

o
o o o

Invasive segment sales increased 29%

EBITDA increased by 19% to Rs. 354 crore; margin holds steady at 27% PAT increased by 7% to Rs. 254 crore Net Debt of Rs. 966 crore and a Net Debt to Equity ratio of 0.49 x as at September 30, 2012

Reduction in total bank debt by 10% (Rs. 114 crore) since March 31, 2012

Commenting on the results and performance, Mr. Vinod Ramnani, Chairman and Managing Director of Opto Circuits said: Our revenue performance for the second quarter of FY13 has been moderate but on a half-yearly basis, weve performed satisfactorily. Our Malaysian facilities for the non invasive business have been rendered operational in the first half and many cost-conscious customer segments have become accessible. I am, therefore, confident of a strong second half in FY13.

Q2 FY2013 Summary
Quarter Business Highlights
Business Highlights o o o Received CE mark to market and sell Revo 1100 in Europe Received DCGI approval to market and sell E-Magic Plus in India and successfully completed FIM in September 2012 Won large orders and tenders in India, Israel, Romania and UK for AEDs

Strategic Initiatives Malaysia production facility o o OEHL Malaysia : Production facility ready; awaiting completion of equipment installation to manufacture catheters for PTA procedures Opto Malaysia & CSI Malaysia: Facilities operational; manufacture sensors, patient monitors and AEDs (for OUS markets)

Q2 & H1 FY2013 Financial Highlights

Consolidated Financials
(Rs. Cr.) Sales Gross Profit Margin % EBITDA Margin % PAT Margin % Basic EPS Q2 FY2013 607 266 44% 162 27% 116 19% 4.80 FY2012 562 265 47% 150 27% 121 22% 5.00 -4% -4% 8% y-o-y Growth % 8% 0% Q1 FY2013 715 318 45% 193 27% 138 19% 5.7 -16% -16% -16% q-o-q Growth % -15% -16% FY2013 1322 584 44% 354 27% 254 19% 10.49 H1 1083 510 47% 298 27% 238 22% 9.81 7% 7% 19% y-o-y FY2012 Growth % 22% 14%

Sales decline q-o-q of 15%; Causes: currency appreciation impact (3%), delayed execution of shipments owing to technical issues of vendor-supplied components (~5%) and unfavourable macro-economic environment Initiation into RoHS compliance & IEC 60601-1 3rd Edition partly impacted COGS and, therefore, gross margin y-o-y Expensing of all product development costs (Rs. 43 crore for H113) from 1st April 2012 impacted y-o-y net profitability; R&D to sales at 3% for H113
5

o o

H1 FY2013 Financial Highlights

Leverage Profile
30th Sep 2012 1084 35% 65% 118 966 1990 0.54 0.49 31st Mar 2012 1172 25% 75% 174 998 1699 0.69 0.59 (32%) (3%) 17%
FY2012 FY2013 FY2014 FY2015

Long Term Debt Schedule1

Change (8%)
100% 73% 44% 19% 0% FY2016

(Rs. Cr) Gross Debt Long Term (Acquisition Finance)

Short Term (Working Capital)

Cash & Cash Equivalents Net Debt Equity Gross Debt / Equity (x) Net Debt / Equity (x)
o o

In H1 FY2013, net repayments of Rs. 200 crores were executed (~ 28% repayment in long term debt, the remaining is routine payments of short term loans and/or revolving lines of credit which mature periodically) The long term debt resides in the books of the Companys subsidiaries domiciled in the US and is matched in currency by the subsidiaries inflows and assets. Such long term debt has varied repayment schedules (bi-annual & quarterly) and varied tenures (between 3 to 4 years) Our debt servicing schedules and utilizations of lines of credit are in consonance with our Lenders and we abide by the terms and timelines contracted with our Lenders

Notes: 1. The long term debt repayment schedule presented above is on the Debt balance as at March 31, 2012

H1 FY2013 Financial Highlights

Working Capital Cycle
NWC Inventory Cash Payables OPC Debtors Loans & Advances

o o o

No material change in working capital cycle from FY12 Improvement in Payables days from 32 days in FY12 to 39 days in H1FY13 Increase in operating cycle from 178 days in FY12 to 199 days in H1FY13 due to increase in Debtor days Unfavorable macro-economic environment in certain markets led to an increase in Debtor days from 131 days in FY12 to 160 days in H1FY13

215 199 160

214 199

131

78

79 69 32 27

39 53
16 H1FY13

FY12

H1 FY2013 Financial Highlights

Other Key Financial Metrics
(Rs. Cr.) Capex % of Sales Consolidated Tax Effective Tax Rate (ETR) 6.3 5% Q2 FY2013 Q1FY2013 HIFY2013 63 5% 14.9 10% 21.3 8%

o o

The tax expense reflects the total of all tax provided and paid during this period across our various entities as per the laws prevailing in their respective countries of domicile The movement in ETR q-o-q is due to increased share of revenues & profitability from those locations which enjoy tax exemptions. Additionally, the quarter tax expense represents an estimate on our tax computations at our various Indian & Foreign entities (and is a combination of both federal and state taxes). Such variations generally even out by the fiscal year end when such tax computations become reasonably determinate Rs. 63 crore (incurred as capex in H1FY13) was, hitherto, lying as Advances paid to Suppliers of Capital Goods in Other Non Current Assets as at March 31, 2012

Other Revenue Highlights

Consolidated Sales by Segment

1% 17%

1% 21%

1%

1% 18%

1% 19%

22%

82%

78%

77%

81%

80%

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13 Non Medical

Mecical Equipment

Interventional Devices

Other Revenue Highlights

Consolidated Sales by Currency Sales Share by Currency (H1 FY13)
1.53% 18.07%

H1 FY13 y-o-y Growth excluding Currency Impact: o o o Consolidated Net Sales: 12% Medical Equipment segment: ~ 10% (Non Invasive)

80.40%

Interventional Devices (Invasive) segment: ~ 23%

USD

Euro

Others

Forex Rates

Q2 FY2013 51.93 68.24 52.70 68.15

y-o-y FY2012 Growth % Avg. Rates 46.79 11%

Q1 FY2013 53.73 69.62 56.31 70.91

q-o-q Growth % -3% -2% -6% -4%

USD/ INR EURO/ INR USD/ INR EURO/ INR

64.94 5% Closing Rates 48.93 66.65 8% 2%

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Other Revenue Highlights

Consolidated Sales Share of Subsidiaries
Q2FY13 Q2FY12 2% 5% 33% 17% 29%

2% 4%

19%

42%

47%

OCI

OCCL

OEHL

AMDL

Others

Entity Financials
Q2 FY2013 201 255 114 13 24 607 y-o-y Q1 q-o-q H1 FY2012 315 489 186 24 69 1083 y-o-y Growth % 24% 20% 28% 25% 10% 22%

(Rs. Cr.) OCI OCCL OEHL AMDL Others Total

FY2012 Growth % FY2013 Growth % FY2013 163 263 94 13 29 562 24% -3% 22% 2% -17% 8% 189 333 124 17 52 715 6% -23% -8% -23% -54% -15% 390 588 238 30 76 1322

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Segment Highlights
Medical Equipment (Non Invasive Segment) Sales Share by Product Utility
2% 45% 2% 37% 1% 33%

o o

Unetixs received CE mark to market and sell Revo 1100 in Europe Cardiac Science won large orders and tenders in Israel, Romania and UK for AEDs; AMDL bagged and executed a prestigious AED tender from the India Armys Northern Command Streamlined government tender vertical in India

53%

61%

66%

o
Q1FY13 Treatment Q2FY13 Vascular Diagnostics

Q2FY12

Monitoring & Measurement

(Rs. Cr.) Monitoring & Measurement Treatment Vascular Diagnostic Total

Q2 FY2013 320 159 7 486 FY2012 245 210 8 463

y-o-y Growth % 31% -24% -20% 5%

Q1 FY2013 358 216 10 584

q-o-q Growth % -11% -26% -32% -17% FY2013 678 375 17 1069

H1 481 390 15 885

y-o-y FY2012 Growth % 41% -4% 12% 21%

Notes: 1. Monitoring and measurement products include cardiac, vital signs and anaesthesia monitoring technologies 2. The Treatment business refers to the hospital and public access revenues from the sale of all defibrillator products 3. Vascular Diagnostics include revenues generated from sale of PAD diagnostic equipment and its accessories

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Segment Highlights
Interventional Devices (Invasive Segment) Sales Share by Product Applicability
1%
1% 1%

Received DCGI approval to market and sell E-Magic Plus in India and successfully completed FIM in September 2012 Appointed new distributor in Scandinavia and Switzerland Restructured sales channels and distribution network in Asia Registered 2 products in Australia and 1 in South Korea

1% 1%

o
1%

o
97%

98%

98%

o
Q2FY12 Vascular Q1FY13 Orthopedics Q2FY13 Urology & Others

(Rs. Cr.) Vascular Orthopedics Urology, Gastroenterology and Gynaecology Total

Q2 FY2013 114 1 2 117 FY2012 93 1 1 95

y-o-y Growth % 23% -13% 34% 22%

Q1 FY2013 124 1 1 126

q-o-q Growth % -8% -11% 15% -8% FY2013 238 2 3 243

H1 185 2 2 189

y-o-y FY2012 Growth % 29% -5% 34% 29%

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H1 FY2013 Industry Trends & Policy Changes

Recent Developments

o Environmental Regulations adding to Costs:

o Began compliance with IEC 60601-1 3rd Edition

o Medical technology companies with global sourcing and distribution have initiated processes to comply with the RoHS Regime across all electrical and electronic medical equipment products o US Department of Health and Human Services released eleven new changes to the Meaningful Use Ruling for Physicians and Hospital organizations. The Ruling defines health care organizations use of electronic health records and related technology in their organization o In Macedonia, it is now mandatory for all organizations with over 100 employees to install AEDs and in Italy, it has become mandatory for all sports associations to install AEDs o Economic slowdown in some mature markets has resulted in budget constraints for purchase of new medical equipment and supplies in care delivery centres

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Opto Circuits: At a Glance

A fast growing multinational medical device company Leader in cardiac and vital signs monitoring, emergency cardiac care, vascular treatments and sensing technologies USFDA listed and CE marked products which are sold in over 150 countries Partnerships with leading OEMs and medical institutions across the value chain Well-known brands include Cardiac Science, Criticare Systems, Eurocor and Mediaid
Best-in-Class Operations Strong Financial Performance

Market Leadership

World class manufacturing facilities across North America, Europe and Asia 6 global R&D centres with highly skilled and integrated teams 193 global patents across product lines as at March 31, 2012 Global sales offices and relationship with marquee distributors Revenue and PAT CAGR of more than 50% over the last 5 years with strong margins Average 38% dividend pay out in last 3 years Conservative balance sheet with low leverage FY2012 ROCE of 20% and ROE of 34%
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Organization Structure
Revised organization structure to focus on the two main business segments
Opto Circuits (India) Ltd. (OCI)
Non Invasive Segment Invasive Segment 96.85% Non Medical Segment 59.71% Others

Mediaid Inc.

Opto Cardiac Care Ltd. (OCCL)

Opto Eurocor Healthcare Ltd. (OEHL)

Advanced Micronic Devices Ltd. (AMDL)

Devon Innovations Pvt. Ltd.

Criticare Systems Inc.

Eurocor GmbH

Maxcor Lifescience Inc.

Unetixs Vascular Inc.

Eurocor Singapore Pte Ltd.

87.2%

Opto Infrastructure Ltd.

Cardiac Science Corp.

Eurocor Asia Sdn Bhd.

Opto Circuits (Malaysia) Sdn Bhd.

N.S. Remedies Pvt. Ltd.

Ormed Medical Technologies Ltd.

Note: 100% stake held by the Parent Company unless specifically mentioned

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Product Portfolio
Medical Equipment (Non Invasive Segment)

Global market opportunity: ~ $14 billion dollars

Monitoring
Cardiac Monitoring Vital Signs Monitoring Defibrillation Products Anesthesia Monitoring Thermometers Consumables, Accessories and Services Vascular Diagnostic Systems

Treatment

Diagnostics

Cardiac Monitoring Q-Stress System

Automated and semi-automated External Defibrillators

Portable Multi-Parameter Monitor 17

Product Portfolio
Interventional Devices (Invasive Segment)

Global market opportunity: ~ $8 10 billion dollars

Vascular
Cardiac Stents Drug Coated Balloons Angioplasty Peripherals

Orthopedics
Hip Implants Suction Devices Surgical Tools Physiotherapy Products

Urology, Gastroenterology and Gynaecology

Catheters Stents Guidewires Dilator Sets, Needles, Baskets, Injectors

Cardiac Stents and Drug coated Balloons

Hip Implants & Surgical Consumables

Catheters & Disposables

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Glossary & Definitions

o o o o o o AED: Automated External Defibrillator OUS: Countries outside the US CE: Conformit Europenne DCGI: Drug Controller General of India FIM: First in Man OEM: Original Equipment Manufacturer

o
o o o o o o o o

USFDA: United States Food and Drug Administration

IEC: International Electrotechnical Commission RoHS: Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Net Current Assets / Net Working Capital (NWC): (All Current Assets) minus (All Current Liabilities excluding short term borrowings and current maturities of long term debt) Net Debt: (Long term borrowings) plus (Short term borrowings) plus (Current maturities of long term debt) minus (Cash & Bank Balances) Per Day Sales: Sales / period under consideration Working Capital Cycle: (Component / Per day Sales) Operating Cycle: (Days Inventory Outstanding) plus (Days Receivables Outstanding) minus (Days Payable Outstanding) EBITDA (Operating Profit): (Core Operating Profit) plus (Total Other Income) 19

# 83, Phase I - Electronic City, Bengaluru - 560 100, INDIA Phone : +91 80 2852 1040/ 41/ 42 Fax: +91 80 2852 1094 Web: www.optoindia.com

Investor Relations: Investor Services:

ir@optoindia.com investorsservices@optoindia.com

Subsidiary Websites www.amdlcorp.com|www.optoeurocor.com www.devoncath.com|www.cardiacscience.com|www.csiusa.com www.unetixs.com|www.eurocor.de|www.nsremedies.com|www.mediaidinc.com