IDT Australia Limited · ASX:IDT
IDT Australia — Shareholder Meeting (October 2017)
14 slides from IDT Australia's shareholder meeting presentation, Oct 24, 2017
Slide 1: Annual General Meeting
Annual General Meeting 24 October 2017
Slide 2: Today's Meeting
Today’s Meeting • Presentation • Questions • Formal meeting • resolutions (poll) • Meeting adjourns for counting of votes • refreshments • Directors available for discussion • Meeting resumes • report results of poll www.idtaus.com.au 2
Slide 3: Today's Presentation
Today’s Presentation • Financial results • Revenue streams • Business overview • API manufacture • Contract development • Generics • CMAX • Confronting the issues • execution • efficiency • planning • CEO/Restructure • Outlook www.idtaus.com.au 3
Slide 4: Financial Results
Financial Results 2017 2016 $’000 $’000 Revenue (excluding discontinued operations) 9,543 7,611 Raw materials 1,953 1,261 Employee benefits 9,747 7,939 Depreciation and amortisation 2,163 2,117 Finance costs 15 44 Impairment of intangibles 7,622 Other operating expenses 2,889 2,208 Net loss before t
Slide 5: Revenue excluding CMAX ($'000)
Revenue excluding CMAX ($’000) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2014 2015 2016 2017 Contract Development API Generics Other CAGR 26% www.idtaus.com.au 5
Slide 6: Contract Development
Contract Development • Historically, good revenues but – elevated technical risk – client initiated variations • Aiming for revenue growth with improved profitability – more selective in projects accepted – focus on opportunities to generate ongoing API/FDF manufacturing revenues www.idtaus.com.au 6
Slide 7: API Manufacture
API Manufacture • Revenues predictable but flat • Base business continues with retention of existing customers – timing of orders remains an issue, cyclical business • Identification of new clients critical for long term revenue growth www.idtaus.com.au 7
Slide 8: Generics
Generics • Temozolomide launched in US (Mayne) October 16 • Pindolol launched in US (ANI) April 17 • Doxazosin, Leucovorin, Mexiletine, Prazosin, Thiotepa in development • Delays in product launches – internal – manufacturing and testing issues • major restructure – responsibility, accountability, e
Slide 9: Generics
Generics • Marked acceleration in price erosion through increased competitor activity and customer consolidation is making this market increasingly difficult – recent major shift in market conditions – normally expect (and plan for) around 3‐5% annual decline, very recently more like 7‐10% – overall
Slide 10: US Distributors
US Distributors ANI Pharma (NASDAQ:ANIP) Mayne Pharma (ASX:MYN) • Located Minnesota, USA • Located Salisbury, Australia • US wide distribution and North Carolina, USA capability • US wide distribution • Focus on specialty generics capability sales • Focus on specialty generics • Aggressive market sh
Slide 11: CMAX Divestment
CMAX Divestment • Non‐core business • Simplifies structure, extends access to cash R&D tax rebate • $16.2m cash received in two tranches www.idtaus.com.au 11
Slide 12: Issues
Issues • Strategic review by Board – improving execution speed – time to market • planning/scheduling/project management • specialist skills – improving efficiency – cost containment • restructure for accountability • simplifying processes • new reporting systems – achieving critical mass – plant ut
Slide 13: CEO Recruitment/Restructure
CEO Recruitment/Restructure • Search underway, but – first priority to finalise strategic direction – need to recruit experienced operational manager – prepared to invest the time to find the right person • With appointment of VP Operations, clarity around CEO skill set – emphasis on commercial skil
Slide 14: Outlook
Outlook • Challenging year ahead – generics pricing – maintaining/building legacy businesses – cost containment – conserving cash • Continuing generics rollout • Achieving critical mass • Evaluating options to maximise shareholder value while minimising cash burn www.idtaus.com.au 14