LifeCell - Financial Highlights 2016

SUCCESS & PROFITABLE GROWTH

Through Experience, Expertise And Technical Proficiency

FROM THE CEO'S DESK

Dear Customer,

Warm personal greetings.

I take pleasure in informing you that we have successfully crossed 2 lakh parents who have trusted LifeCell to safeguard their baby's stem cells towards securing their future health.

More significantly. LifeCell has seen an incredible & substantial growth in the recent 2 years wherein more than 1 lakh parents have chosen LifeCell once we made stem cell banking at most affordable pricing. Effectively we have doubled our customers within a span of 2 years of what we had achieved over the earlier 10 years.

This was possible only with your support, confidence & trust on us and we sincerely thank you for taking LifeCell to such a high point. I personally assure you, that LifeCell would certainly live by our commitments, promises and exceed your expectations.

Now, to reassure our commitment, there cannot be a better moment to share LifeCell's financial stature, strengths & stability basis the financials published by Ministry of Corporate Affairs (Government of India). I consider this as my responsibility to share these financial details, since you have entrusted us the responsibility of safeguarding your child's stem cells.

 

REVENUE & MARKET DOMINANCE

LifeCell significantly dominates its leadership position in stem cell banking with revenues of Rs. 1,262 Mn contributing to 49 .1 % of the total stem cell banking industry revenues. LifeCell is far ahead of other 6+ players in the stem cell banking business who collectively contribute to Rs.1,307 Mn at SO. 9% of the total market revenues.

This signifies the fact that LifeCell enjoys 50% market share with all other companies collectively put together meet the balance 50% of market revenues.

LifeCell is by far the largest cord blood bank in India based on reported revenue

Revenue FY 2015

 
Cord Blood BanksLifeCellCryoBanksCordLifeBabyCellStemCyteCryoSaveAll Peers
Revenue from Stem Cell Banking1,2623424492511101551,307
% of Total Market49.1%13.3%17.5%9.8%4.3%6.0%50.9%

A WELL BALANCED BALANCE SHEET

A good attribute of an organization is its size of Balance Sheet and manner in which the assets back-up the own funds and third-party liabilities. LifeCell's Balance sheet size stands at Rs.1,891 Mn at 44% of the total industry balance sheet whereas collective size of balance sheet of other players is at Rs.2,432 Mn at 56% of the industry size as reported to Registrar of Companies.

LifeCell is by far the largest and most invested player dedicated to stem cell banking and therapies for preventive healthcare

Balance Sheet Size - FY 2015

 
Cord Blood BanksLifeCellCryoBanksCordLifeBabyCellStemCyteCryoSaveAll Peers
Balance Shee Size - Rs. in Mn1,8911,3864023051821562,432
% of Total Market43.7%32.1%9.3%7.1%4.2%3.6%56.3%

INFRASTRUCTURE - BUILDINGS OF TRUST

LifeCell's stem cell bank assets valued at Rs. 756 Mn exceeds 70% of the total assets held by all the other industry players valued at Rs.1,048 Mn

Infrastructure - FY 2015

The valued tangible assets of LifeCell is at 42% of the total Industry assets of all the top 5 other stem cell banks.

Cord Blood BanksLifeCellCryoBanksCordLifeBabyCellStemCyteCryoSaveAll Peers
Tangible Assets - Gross Rs. in Mn7566219022867421,048
% of Total Market41.9%34.4%5.0%12.6%3.7%2.3%58.1%

FINANCIAL FREEDOM AND ASSETS

As individuals we all wish and want to be debt-free. lt is equally or more important for an organization to be debt-free to be able to sustain its operations in a manner that it is able to continue its service its customers and safeguard the valuable stem cells for life. LifeCell takes pride in sharing that the company is completely debt-free with no operational assets being parked with any institution to fund the organization's regular operations and sustenance.

LifeCell's Balance Sheet is debt free, reflecting governs for self-financing LifeCell's growth in preventive healthcare services

Source of Funds FY 2015

LifeCell's core assets are reported at Rs.1,891 Mn and singularly exceeds the assets of the other Top 5 stem cell banks who collectively own assets reported at Rs.1,859 Mn. More importantly LifeCell's own funds net worth is at Rs.1,566 Mn @ 1.5 times the cumulative total of all other 5 top stem cell banks collectively put together at Rs.1,048 Mn.

The valued tangible assets of LifeCell is at 42% of the total Industry assets of all the top 5 other stem cell banks.

Cord Blood BanksLifeCellCryoBanksCordLifeBabyCellStemCyteCryoSaveAll Peers
Own Funds1,566.63312811831461071,048
Bank debt (net of cash)0.04230.033017473
Other 3 P Liabilities324.9632121903632911

WE ALSO PRESERVE CASH - NOT JUST STEM CELLS

The cash flow & cash reserves of LifeCell are in surplus to adequately manage the operations. The cash flow of LifeCell is at Rs.223 Mn and is more than double the cash flow of all other stem cell banks collectively at Rs. 94 Mn. LifeCell's cash flow is funded through continuous flow of enrolment revenues, annual storage fees for the cryopreserved samples and own funds.

A SECURE ACCOUNTING POLICY & PRACTICE

LifeCell's financial stature is at its best and the company follows a rational revenue recognition policy for the income it had received for storage of stem cells for the future years.

The amounts received in advance towards long-term preservation of stem cells is recognised as a deferred revenue towards future preservation of stem cells and is proportioned as revenue for the future years. Hence this may reflect an accounting loss and show a negative in the balance sheet but this preservation amount which is already collected in advance has already been adequately parked in secured financial investments, land & building to stay financially secured for the future decades.

Simply stated, for customers who have enrolled in long-term plans and paid one-time payment, necessary allocation of funds & financial reserves have been created to maintain the preservation of their stem cell during the said contract period.

On the future plans and growth strategies LifeCell has been foraying into new services in mother & babycare segment and investing into these healthcare domains. LifeCell holds a high reserve of funds and assets to self-finance such growth strategies. These services would not only bring more value-added services to your doorstep but also put LifeCell into a high pedestal of growth. Keep watching us for more news.

Warm Personal Regards,

Mayur Abhaya

Chief Executive Officer & Managing Director

LifeCell International

Source: Ministry of Corporate Affairs. www.mca.gov.in. Information available upon registration and payment