& TTK Healthcare LIMITED ‘TTKH:SECL:GJ:086:15 August 07, 2015 BSE Limited FAX NO. 022 - 22723021 Phiroze Jeejeebhoy Towers 25" Floor, Dalal Street Mumbai 400 001 Company Code: 3153 Scrip Cod : 507747 Dear Sirs, Re: Chairman's Speech ‘We are forwarding herewith a copy of the Chait man’s Speech delivered at the Fifty Seventh Annual General Meeting of our Company held today at The Music Academy, Kasturi Srinivasan Hall (Mini Hall), New No.168, (Old No.306), TTK Road, Chennai 600 014, We request you to kindly take the above document on record. Thanking you Yours faithfully For TTK Healthcare Limited (KAA awe’ (S KALYANARAMAN) Director & Secretary Encl. : ala Rega Office. No. 6, Cathedral Road, Chennai - 600 086, INDIA Phone: 91-44-28116106 - 08, Fax : 91-44-28116387 Email: info@ttkhealthcare.com Website : www.ttkhealthcare.com CIN: L24231TN1958PLC003647 (Factory: 5, Old Trunk Road, Pallavaram Chennai - 600 043, INDIA)t& TTK HEALTHCARE LIMITED Regd. Office : No.6, Cathedral Road, Chennai 600 086 CHAIRMAN’S SPEECH [FIFTY SEVENTH ANNUAL GENERAL MEETING - 7™ AUGUST, 2015] Ladies and Gentlemen, It gives me great pleasure to welcome you all to this Fifty Seventh Annual General Meeting of your Company. FINANCIAL YEAR 2014-15: ‘The Annual Report for the year has already been circulated. | would like to touch upon the salient features of the Company's performance during the year under review. Financial Highlights: ° ° ° ° Revenue from Operations grew by around 16% from Rs. 416.18 crores to Rs.482.93 crores. The Pre-tax Profit stood at Rs.26 33 crores. (Previous year - Rs. 19.67 crores). Earnings per Share (EPS) was Rs.20.80 as against the previous year's figure of Rs. 15.95 Your Company continues to exercise utmost discipline with reference to Working Capital management and carries a cash balance of around Rs.60 crores. ‘The performance would have been better but for the sluggish business environment prevailing in the FMCG segment and this did have an impact on the overall performance of the Company. BUSINESSWISE PERFORMANCE: a) CONSUMER PRODUCTS BUSINESS: Woodwards Gripe Water (WGW) continued its growth, though at a slower pace, mainly due to lack of growth in the northern markets. Deodorants as a category had a very difficult year with deodorants showing 5% volume decline year- on-year. With the various initiatives by the Company such as re-launch of MiniDeo, Lip Balm and EVA Exotic and launch of Body Lotion, EVA managed to report a decent growth. It is also heartening to note that despite the adverse business conditions, EVA maintained its leadership position in the Women's Deo category.(2 8) (4) Condoms as a category too had a very challenging year with the category declining by around 2% Despite negative growth of the category and the price control fully in place, Skore managed a marginal growth and achieved a market share in excess of 10%, an increase of 2% over the previous year. thus becoming the Third Largest Brand in the market. ‘The performance of Good Home has been satisfactory with @ healthy growth. PHARMACEUTICAL BUSINESS: The overall performance of the Pharma Business has been impressive with a healthy growth — significantly higher than the market growth. The growth was driven by both the existing products and, also the good performance from the newly-launched products, The performance of Animal Welfare Division has been quite satisfactory, due to appreciable growth from all the flagship brands, ‘The focus for the current year would be to sustain the momentum generated by further intensifying the various initiatives commenced last year. MEDICAL DEVICES BUSINESS: Despite the external environment not being conducive, Heart Valve business reported a marginal ‘growth in volumes. Efforts are being made to grow the volumes further. ‘The performance of Ortho business has been quite satisfactory with more doctor conversions and launch of new products. Efforts are also made to develop the overseas markets and the initial response particularly from Europe is encouraging, FOODS BUSINESS: During the year under review, the performance of the Foods Division has been encouraging, The Jaipur facility is fully ready and would be commissioned some time during the Second Quarter of 2018-16. After the initial stabilization process, commercial production is likely to commence during the Third Quarter of the current year. Your Company realizes the need to offer innovative and differentiated products in this Segment and towards meeting this objective, a dedicated “Centre of Excellence” is being set up at Bangalore, for developing new products / recipes. ‘Your Company has also initiated action for implementing TPM both at the Hosakote and Jaipur facilities,DIVIDEND: Your Directors have recommended a dividend of Rs. 4.50 per share (\e.) 45% for the year under review as against Rs 4.00 per share (40%) declared in the previous year FINANCIAL YEAR 2015—1 During the First Quarter, the Revenue from Operations amounted to Rs.138.66 crores as against the previous year's First Quarter figure of Rs. 129.77 crores, a growth of around 7%. LOOKING AHEAD / STRATEGIC INITIATIVES: ‘As mentioned in my speech at the last AGM, your Company would continue to focus on the various strategic initiatives taken up for implementation in the previous year. The broad strategic initiatives would be as below % The thrust for Consumer Products Business would be- (i) to-exploit the full potential of the existing brands through appropriate promotional investments and distribution reach; and (ii) to launch carefully chosen new products that are complementary to the existing categories dealt with by the Company, so as to maximize the chances of success, % The growth drivers for Pharma Business would be- () enhanced focus on the Gynaecology and Infertiity Segments and to grow the existing core brands; (ii) expansion of product portfolio through robust new launches in the select therapeutic segments; and (ii) improving the retention / effectiveness of the field force through appropriate compensation packages coupled with training and developmental initiatives. For Medical Devices business, the plan would be to grow the existing volumes of Heart Valves and to grow the Ortho business by accelerating the doctor conversion / usage and to add select products to the existing range, both for the domestic and permitted export markets, Your Company is also exploring the opportunities available under the “Make in India’ initiative by the Prime Minister for improving the volumes of the medical devices manufactured by your Company.4 The Foods Division of your Company, with the expansion of production capacity at Hosakote and the new facility at Jaipur, would be a leading player in this segment. In order to maintain the competitive edge, your Company would focus on innovative and differentiated product offerings, both for domestic and international customers. ACKNOWLEDGEMENT: | acknowledge the valuable contributions of Banks, Business Associates, Shareholders and Employees at all levels who have supported the Company in all ts endeavours. Thank you.