Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Investor Presentation (February 2013)
38 slides from Sun Pharmaceutical Industries's investor presentation, February 2013
Slide 1: Creating Lasting Value
Creating g Lasting g Value Investor Presentation - February 2013 BSE:524715 • NSE:SUNPHARMA Bloomberg: SUNP@IN • Reuters: SUN.BO www.sunpharma.com
Slide 2: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, will , “aim”, aim , “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”,
Slide 3: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operations Financials Approach Composition Growth Geographies History & API, Finished Profile Key Dosage & Acquisitions Manufacturing 3 Creating Lasting Value - Investor Presentation
Slide 4: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operations Financials Approach Composition Growth Geographies History & API, Finished Profile Key Dosage & Acquisitions Manufacturing 4 Creating Lasting Value - Investor Presentation
Slide 5: Revenue Composition
Revenue Composition p 2011-12 Annual Gross Sales : USD 1,696 million 5 Year CAGR 29% India Branded Generics 36% 5 Year CAGR 20% APIs 5 Year CAGR 14% 7% 14% US Formulations International 5 Year CAGR 46% Generics 5 Year CAGR 41% 43% Finished Dosage International sales 92% sales 62% 5 year CAGR 31% 5 y
Slide 6: Creating Value, Continuously…
Creating Value, Continuously… ‘83 ‘13 1983 1995 2004 2010 2012 Began with B ith 5 products First API USD 350mn Acquired Dusa Plant Panoli FCCB raised 1993 Acquired 2013 1997 Taro 2007 1994 2011 $7.5Mn $7 5Mn invested First Research Centre in Caraco Acquired URL SPARC, Baroda Pharma Demerger IPO - Rs
Slide 7: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operations Financials Approach Composition Growth Geographies History & API, Finished Profile Key Dosage & Acquisitions Manufacturing 7 Creating Lasting Value - Investor Presentation
Slide 8: Strategy and Approach
Strategy and Approach Create sustainable revenue streams Seek cost leadership • Focus: Chronic therapies • Vertical integration : Development through • Differentiation: Technically Manufacturing g (API ( and complex products Finished Dosage) to Marketing • Speed to market • Optimize operational cost
Slide 9: Growing Steadily
Growing Steadily Consistent top-line and bottom-line growth; (Figures in USD million) continuing the trend despite increasing size Net Sales 1,672 EBITDA N tP Net Profit fit 679 540 468 172 147 154 44 38 39 19 11 96-97 01-02 06-07 11-12 96-97 01-02 06-07 11-12 96-97 01-02 06-07 11-12 9
Slide 10: Sustained Profitability
Sustained Profitability Superior business model Margins consistently higher than peers* Gross Margin EBITDA Margin Net Margin 90% 60% 60% 80% 32% 80% 41% 40% 40% 70% 20% 20% 60% 0% 0% 50% -20% 20% 40% -20% -40% 07-08 08-09 09-10 10-11 11-12 07 08 08-09 07-08 08 09 09-10 09 10 10-11 10 11 11-12 11 12
Slide 11: Successful At Acquisitions
Successful At Acquisitions Acquired 16 high potential yet under-performing businesses*; successful turnarounds 10,000 45 8 Early y Acquisitions q 8,000 36 6,000 27 4,000 18 2,000 9 0 0 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 Net Sales (MINR) Operating Margin(%) Operating Profit (MINR)
Slide 12: Key Deals & Rationale
Key Deals & Rationale Year Deals Country Rationale 2013 Acquired URL’s generic business US Adds 107 products to US portfolio Dermatology company, company FDA approved 2012 Acquired DUSA Pharmaceuticals, Inc. US facility at Wilmington, MA. 2011 100% ownership of Caraco US Privatization Develop and co
Slide 13: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operations Financials Approach Composition Growth Geographies History & API, Finished Profile Key Dosage & Acquisitions Manufacturing 13 Creating Lasting Value - Investor Presentation
Slide 14: India Branded Generics: Strong Base
India Branded Generics : Strong Base • Market Share : 4.8%* Th Therapywise i Break-up B Others k 7% Neuro-Psychiatry 26 % • Leadership in chronic Opthalmology 5 % Others segment; Opthalmology Opt a o ogy- 5% 8% Neuro Psychiatry Neuro-Psychiatry Antiasthamatic & 28% Top 3 in over 50% of Antiasthamati
Slide 15: Relentless Customer Focus
Relentless Customer Focus Therapy focused marketing Strong increase • 3,000+ 3 000+ sales representatives in market share covering 140,000 specialist doctors 200 150 100 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Ci l Cipla R b Ranbaxy S Sun C dil Cadila L i Lupin DRL T Torr
Slide 16: Therapy Focused Marketing
Therapy Focused Marketing Delivering promotional message to specialty customers. Gastroenterology Orthopedics Gastroenterology, Cardiology Diabetology Cardiology, Psychiatry, Neurology Ophthalmology Rheumatology, Asthma, Oncology Fertility, Gynecology, Gynecology Dermatology gy COPD Urology gy 16 Cr
Slide 17: Preferred Choice of Doctors
Preferred Choice of Doctors Leadership in key therapeutic areas* Top 10 Brands contribute 20% of India Sale Specialist Oct ‘07 Oct ‘12 Brand Name Therapy area Psychiatrists 1 1 Proton pump inhibitor/ Pantocid antiulcerant Neurologists 1 1 CVS, cholesterol reducing Cardiologists 1 1 Aztor agent p Ort
Slide 18: US Generics
US Generics Integrated generic manufacturer with flexibility for manufacture Approvals onshore / offshore Therapy wise summary Skin, 92 Caraco Pharmaceutical Laboratories Ltd. CNS, 64 CVS, 24 The 100% owned US ggenerics subsidiary, y, markets own and Sun Pharma ANDAs Pain, 18 Allergy, 19 S Sun Ph Ph
Slide 19: ANDA Pipeline: Significant ramp up
ANDA Pipeline : Significant ramp up Products Filed and Approved Status As of Dec 12, ANDAs for 142 377 397 403 products await approval (including 17 tentative approvals) Sun Pharma 225 250 261 96 Products pending 207 (with 9 tentative approvals) 177 142 Caraco 84 29 Products pending 69 (with 5 tenta
Slide 20: Europe Generic Markets
Europe Generic Markets Focused key markets • Working on complex generic products, including injectables • Filings g from Indian site Focus Countries An API and Finished Dosage manufacturing site in Hungary with controlled substance capacity 20 Creating Lasting Value - Investor Presentation
Slide 21: International Branded Generic Markets
International Branded Generic Markets Less Regulated Markets Replicating the speciality template • Product basket width and • 40 countries technology based products as • 700 strong local sales force promotes growth drivers brands to doctors CIS Countries China Mexico Myanmar B il Brazil S i Lanka Sr
Slide 22: Leveraging through Partnership
Leveraging through Partnership • Sun Pharma and Merck establish a Joint Venture for Emerging Markets excluding g India • JV to bring new combinations and formulations of incrementally innovative, branded generics to market • O Opportunity t it tot use SPARC P Proprietary i t D Delivery li Technologi
Slide 23: Speciality API
Speciality API High Margin Regulated Markets Strong regulatory capability • Business largely with end users in • 232 DMF / CEP filed regulated g markets • 161 approved • Over 160 speciality APIs across 8 plants (including Taro) 23 Creating Lasting Value - Investor Presentation
Slide 24: Strong Regulatory Capability
Strong Regulatory Capability International level quality processes and documentation 225 232 206 155 154 161 133 127 90 89 81 8 40 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Dec-12 DMF/CEP Filed DMF/CEP Approved 24
Slide 25: Integrated product dev and manufacturing network
Integrated product dev and manufacturing network Vertically integrated network across four continents enabling high quality, low cost and a quick market entry across the geographies Ontario (Canada) Tiszavasvari Detroit (Hungary) Wilmington M.A. Aurora Cranbury Jammu Bryan Sikkim Plant Tennessee Phi
Slide 26: Finished Dosage Manufacturing
Finished Dosage Manufacturing 18 Manufacturing sites worldwide ld id • India : 6, US : 6, • Canada, Brazil, Maxico, Hungary , Israel, Bangladesh : 1 each • Capacities available for a variety of finished dosage Tablets / Injectables / Sterile Capsules Vials Dry powder Semisolids Ampoules Eye drops Pr
Slide 27: API Manufacturing
API Manufacturing 8 World class locations with all sites ISO 14001, ISO 9002 approved • India : 5,, Israel : 1,, US : 1,, Hungary g y:1 Over 25 API processes scaled up annually Panoli & Ahmednagar g Hungary & (both India) Tennessee (US) API • International regulatory Key Plants • Controlled substanc
Slide 28: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operations Financials Approach Composition Growth Geographies History & API, Finished Profile Key Dosage & Acquisitions Manufacturing 28 Creating Lasting Value - Investor Presentation
Slide 29: Research and Development
Research and Development • Generic R&D spend around 6% of net sales • Strong research teams in generics, finished dosage development, biological support, chemistry • 4 R&D centers with about 800 scientists Mumbai Immediate term Balancing Medium term ANDA DMF, ANDA, DMF Products P d t forf India I di
Slide 30: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operations Financials Approach Composition Growth Geographies History & API, Finished Profile Key Dosage & Acquisitions Manufacturing 30 Creating Lasting Value - Investor Presentation
Slide 31: Corporate Governance
Corporate Governance Our p philosophy p y on corporate p governance g envisages g working towards high levels of transparency, accountability and consistent value systems across all facets of operations Chairman Independent Audit Sun Pharma Directors Committee Israel Makov K ki Mistry Keki Mi t H Ha
Slide 32: Shareholding Pattern
Shareholding Pattern as on Dec 31, 2012 Individuals and Others • Rs 1,000 Invested in 6% Bodies Corporate the 1994 IPO is 5% Financial Inst / Banks currently worth more 3% than Rs. 330,000 Mutual Funds 2% FIIs / Foreign Banks 20% Promoter and promoter group 64% • Total shares outstanding : 1,035 mil
Slide 33: Financials
Financials Market Capitalisation USD 13.9 billion* Figures in $ million # 2007-08 2008-09 2009-10 2010-11 2011-12 P&L Summary Net Sales 833 932 847 1,256 1,672 Gross Profit 654 745 615 934 1,330 EBITDA 385 407 288 428 679 Net Profit 369 396 285 398 540 R&D Spend 71 72 56 73 93 BS Summary Shareholder
Slide 34: Financial Ratios
Financial Ratios 2007-08 2008-09 2009-10 2010-11 2011-12 Growth (%) Net Sales 57.1 57 1 27.3 27 3 (6.2) (6 2) 42.8 42 8 39.9 39 9 Gross Profit 69.0 29.6 (14.8) 46.3 49.5 EBITDA 130.7 20.2 (26.9) 43.2 66.6 Net Profit 89 6 89.6 22 2 22.2 (25 7) (25.7) 34 4 34.4 42 5 42.5 Margins (%) Gross Margin 78.5
Slide 35: Key Financials Q3 FY13
Key Financials Q3 FY13 Figures in $ million Q3 FY13 Q3 FY12 CHANGE 9m FY13 9m FY12 CHANGE FY1112 Net Sales 524 456 15% 1,501 1,205 24% 1,672 Gross Profit 421 375 12% 1,216 961 26% 1,330 Gross Margin 80% 82% 81% 80% 79% EBITDA 232 205 13% 670 488 37% 679 EBITDA Margin 44% 45% 45% 40% 41% Net Profit 1
Slide 36: Recent Developments
Recent Developments • Received US FDA approval for generic Doxorubicin HCL Liposomal Inj. ¾ Reflects Sun’s Sun s technological strength for complex products • Sun & Taro mutually agreed to terminate their merger agreement • Acquisitions ¾ URL acquisition achieved financial closure – Expands product
Slide 37: Guidance for FY13
Guidance for FY13 • Sales growth : 30-32% over FY12 • R&D : 6 6-8% 8% of sales • Capex : $ 100 Mn • ANDAs for 25 products to be filed 37 Creating Lasting Value - Investor Presentation
Slide 38: For updates and specific queries, please contact
For updates and specific queries, please visit www.sunpharma.com or feel free to contact Nimish Desai Mira Desai Tel : +91 22 6645 5645, Ext 717 Tel : +91 22 6645 5645, Ext 606 Tel Direct : +91 22 66455717 Tel Direct : +91 22 66455606 Mobile : +91 98203 30182 Mobile : +91 98219 23797 nimish.desai@su
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