WuXi AppTec Co., Ltd. Class A · SSE:603259
WuXi AppTec Co., Ltd. Class A — H1 2024 Earnings Presentation
24 slides from WuXi AppTec Co., Ltd. Class A's earnings presentation, Jul 30, 2024
Slide 1: WuXi AppTec First Half 2024 Results
WuXi AppTec First Half 2024 Results July 30, 2024 1 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
Forward-Looking Statements This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe
Slide 3: Results Overview, Segment Performance, Financial Performance, Company Outlook
01 Results Overview 02 Segment Performance 03 Financial Performance 04 Company Outlook 3 Note: Unless otherwise stated, all financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The currency is RMB. All net profit disclosed in this
Slide 4: 1. Results Overview
1. Results Overview 4
Slide 5: Q2 2024 Revenue & Profit Steadily Improved QoQ as Expected
Q2 2024 Revenue & Profit Steadily Improved QoQ as Expected, with Revenue Up 16.0% QoQ and Adjusted Non-IFRS Net Profit Up 28.5% QoQ Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion +16.0% +28.5% 9.26 7.98 2.46 1.91 Q1 2024 Q2 2024 Q1 2024 Q2 2024 5
Slide 6: Maintaining Stable Operations in H1 2024 Despite External Challenges
Maintaining Stable Operations in H1 2024 Despite External Challenges Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion COVID-19 Commercial Projects non COVID-19 Commercial Projects -8.6% -0.7% -14.2% excluding COVID-19 commercial projects 18.87 17.24 5.09 4.37 H1 2023 H1 2024 H1 2023 H1 2
Slide 7: Continue to Serve as a Highly-Efficient Enabler to the Industry
Continue to Serve as a Highly-Efficient Enabler to the Industry, Create Value for Global Customers and Bring Groundbreaking Therapies to Patients As global demand for life saving and innovative drugs continues to grow, customer demand for our integrated services continues to grow ⚫ 500+ new customer
Slide 8: Stability and Resilience of the Company's Financial Performance
Diversified Revenue Streams1 from Customers Across Regions Ensure the Stability and Resilience of the Company’s Financial Performance RMB billion China Europe 3.40Bn，+2.8% 2.22Bn，+5.3% Revenue contribution: 20% US Revenue contribution: 13% 10.71Bn， excluding COVID-19 commercial projects - 1.2% Reven
Slide 9: Actively Promoting Sustainability and Enhancing Global ESG Leadership
Actively Promoting Sustainability and Enhancing Global ESG Leadership Joined the United Nations Global Compact (UNGC) in 2024, and Named to FTSE4Good Index Consecutively in 2023-2024 Consecutive “A-” rating in Joined the United Nations Consecutive “AA” ratings CDP Climate Change in “Silver” rating b
Slide 10: 2. Segment Performance
2. Segment Performance 10
Slide 11: WuXi Chemistry: CRDMO Business Model Drives Continuous Growth
WuXi Chemistry: CRDMO Business Model Drives Continuous Growth CRDMO Business Model Drives Continuous Growth Revenue & Gross Profit Margin ⚫ Despite external challenges, H1 revenue of WuXi Chemistry reached 12.21bn, growing 2.1% YoY excluding COVID-19 commercial projects RMB billion ⚫ H1 adjusted non
Slide 12: WuXi Chemistry: Growing Small Molecule CRDMO Pipeline
WuXi Chemistry: Growing Small Molecule CRDMO Pipeline Driven by “Follow the Molecule + Win the Molecule” Strategies “R” 7%↑ H1 2024 Newly 450,000+ Compounds 1 Added Molecules in Total 644 632 2,825 Preclinical & Phase I “D” 18%↑ 9 353 Phase II 1 74 Phase III 14 Commercial & Phase III Projects “M” 20
Slide 13: TIDES: Business Growing Rapidly with Fast Increasing Pipeline and Capacity
TIDES: Business Growing Rapidly with Fast Increasing Pipeline and Capacity Oligo and Peptide “D&M” Oligo and Peptide “D&M” Solid Phase Peptide Synthesizer Customers Molecules Total Reactor Volume 32,000 # of customers # of molecules Liter +39% +25% 288 267 140 151 189 103 57 H1’23 99 H1’23 6,000 121
Slide 14: WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leading Positions
WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leading Positions Revenue & Gross Profit Margin Lab Testing Services ⚫ H1 revenue of lab testing services down 5.4% YoY to 2.12bn, among RMB billion which, drug safety evaluation service revenue down 6.3% YoY due to Adjusted Non- market imp
Slide 15: WuXi Biology: New Modality Business Drives Growth
WuXi Biology: New Modality Business Drives Growth; WuXi Biology Platform Continues to Generate Downstream Opportunities Revenue & Gross Profit Margin New Modality Business RMB billion ⚫ Focused on improving capabilities related to new modalities, revenue from new modalities grew 8.1% YoY, contributi
Slide 16: WuXi ATU: Commercial and Existing Clinical Stage Projects Continue to Advance
WuXi ATU: Commercial and Existing Clinical Stage Projects Continue to Advance; Revenue and Profit below Expectation due to Proposed U.S. Legislation Revenue & Gross Profit Margin RMB billion Pipeline & Progress of Commercial Projects Adjusted Non- ⚫ H1 revenue and GPM down YoY, primarily due to: 1)
Slide 17: WuXi ATU: Advancing Pipeline on the Globally Integrated CTDMO Platform
WuXi ATU: Advancing Pipeline on the Globally Integrated CTDMO Platform Testing CAR-T | TIL | MSC Cells AAV | LVV | TESSA US | EU | CN 49 Preclinical & Phase I 8 Phase II Including 2 5 Phase III Projects in BLA Preparation Stage 1 Commercial Project Added 2 Commercial in H1 2024 17
Slide 18: 3. Financial Performance
3. Financial Performance 18
Slide 19: Continuously Improve Operating Efficiency and Maintain Resilient Profit Margin
Continuously Improve Operating Efficiency and Maintain Resilient Profit Margin Adjusted Non-IFRS Net Profit Attributable to Adjusted Non-IFRS Gross Profit Adjusted Non-IFRS GPM* the Owners of the Company Adjusted Non-IFRS NPM RMB MM RMB MM 40.0% 40.3% 38.0% 38.7% 42.0% 41.6% 39.8% 18.0% 22.0% 22.4%
Slide 20: Sustained Positive FCF Driven by Business Growth & Operating Efficiency
Sustained Positive FCF Driven by Business Growth & Operating Efficiency Excluding COVID-19 Commercial Projects, H1 2024 Operating Cash Flow Up 48.3%/RMB 1.50Bn YoY RMB MM Capital Expenditure 12,641 Operating Cash Flow COVID-19 Commercial Projects 9,966 10,230 6,936 5,517 5,341 4,739 4,379 3,828 3,03
Slide 21: 4. Company Outlook
4. Company Outlook i ls Be 3)
Slide 22: Update on Proposed U.S. Legislation
Update on Proposed U.S. Legislation The Company has learned that, on March 6, 2024, the U.S. Senate Committee on Homeland Security and Government Affairs voted to report to the Senate a draft bill S.3558; on May 15, 2024, the U.S. House Committee on Oversight and Accountability voted to report to
Slide 23: Update on Proposed U.S. Legislation
Update on Proposed U.S. Legislation The Company strongly disagrees with any preemptive and unfair designation of us as a named “biotechnology company of concern” without due process. The Company fully complies with the laws and regulations in the countries and regions in which we operate, and is w
Slide 24: Company Outlook
Company Outlook Our unique integrated CRDMO business model can effectively meet the growing demand of customers worldwide. It enables the Company to closely follow scientific innovations, develop 1 distinct industry insights, instantly seize opportunities in new molecules as they rise, and continue