Ajanta Pharma Limited · NSE:AJANTPHARM
Ajanta Pharma — Non-Deal Roadshow (November 2022)
39 slides from Ajanta Pharma's roadshow presentation, Nov 25, 2022
Slide 1: Intimation of Schedule of Analyst / Institutional Investor Meeting
Ajanta House T +91 22 6606 1000 Charkop, Kandivli West, F +91 22 6606 1200 Mumbai 400 067 E [email protected] India W www.ajantapharma.com 25th November 2022 BSE Limited National Stock Exchange of India Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot No. Dalal Street, C/1, G block, Ban
Slide 2: Investor Presentation
Investor Presentation Strictly Private and Confidential November 2022 i
Slide 3: Important Disclosure
Important Disclosure Except for the historical information contained herein, statements in this presentation and any subsequent discussions, which include words or phrases such as 'will', 'aim', 'will likely result', 'would’, 'believe', 'may', 'expect', 'will continue', 'anticipate', 'estimate', 'in
Slide 4: Ajanta Pharma Overview
Ajanta Pharma ’ Overview veeeeere uuu HA
Slide 5: Who Are We Today? Diversified Branded Generics Company Led by a Strong India Business
Who Are We Today? - Diversified Branded Generics Company Led by a Strong India Business Company Overview Operational and Financial Highlights ✓ Well-diversified branded business spread across India, Africa and Asia ✓ Strong Product Portfolio with track record of out-growing the Rank in Market led by
Slide 6: Snapshot of Current Business - At a Glance
Snapshot of Current Ajanta Pharma Business – At a Glance Focused on Branded Generics 16% 4,200 MRs 21 Branded Generics (front-end model across all geographies) INR 25+ Cr Brands Revenue CAGR (FY19-FY22) Strong Domestic Franchise ~2x 45th -> 27th 2nd Outperformance Rank improvement Rank in Ophthalmol
Slide 7: Overview of our Geographic Segments
Overview of our Geographic Segments Branded Generics Branded Generics India Branded Generics Asia Institutional Africa US Generics Africa 1H-23 Revenue % 1H-23 Revenue % 1H-23 Revenue % 1H-23 Revenue % 1H-23 Revenue % 6% 19% 26% 32% 17% 4 7 7 1Bn+ 43 Segments Segments Segments Patients Treated Appro
Slide 8: Domestic Formulations Business Overview
Domestic Formulations Business Overview 5
Slide 9: India - Scaled Franchise with Track Record of Consistent Organic Growth
India - Scaled Franchise with Track Record of Consistent Organic Growth 27th 5th 65% 12% 2,800+ 250,000+ Rank in IPM Rank in Covered Market Chronic Sales DPCO Exposure MRs Doctors Covered Focused Presence with Rank Improvement Across Therapies Track record of Revenue Growth IQVIA Sep. MAT 2022 IQVIA
Slide 10: Focused Presence in Key Therapy Areas
Focused Presence in Key Therapy Areas Cardiac Ophthal Derma Pain #9 #2 #2 #14 CVM rank(1) 42% 30% 20% 8% Contribution to India revenue (1H-FY23) Top Brands 275 128 515 558 385 238 116 356 185 341 268 72 MAT Sales (INR Cr)(1) Mar-20 Mar-22 Sep-22 Mar-20 Mar-22 Sep-22 Mar-20 Mar-22 Sep-22 Mar-20 Mar-2
Slide 11: Strong Brand Portfolio with Track Record of Consistent Growth
Strong Brand Portfolio with Track Record of Consistent Growth 9 54% 16 INR 25 Cr Brands (Sep-22) MAT contribution from Top 10 brands (Sep-22) New launches in FY22 MAT Sales Brand CAGR / Brand rank FY22 Brand name Molecule Therapy (INR Cr) Segment CAGR Market share Sep-22 (4-yr)(1) Mar-18 Mar-22 Meto
Slide 12: Distinctive Strategy of Launching Novel First-to-Market Products
Distinctive Strategy of Launching Novel First-to-Market Products… 50% 150+ 4 First to launch products in portfolio 1st to Market Products 1st to Market launches in FY22 MAT Growth from New Launches (%) # of new launches in the domestic market # 9.2% 32 28 25 21 5.4% 5.3% 5.4% 18 4.7% 16 3.8% 4.2% 15
Slide 13: Driving Ajanta's Outperformance vs. the IPM in the Last Five Years
…driving Ajanta’s Outperformance vs. the IPM in the Last Five Years IPM Growth vs. Ajanta Growth 20% 18% 18% 16% 15% 14% Growth 2x 13% of the 11% 11% market 10% 8% 7% 5% 4% 0% Mar19 Mar-20 Mar-21 Mar-22 Sep-22 Cardiac Opthal Derma Pain 15% 20% 19% 10% 14% 13% 6% 3% Sep-22 Sep-22 Sep-22 Sep-22 Ajanta
Slide 14: Asia Branded Business Overview
Asia Branded Business Overview 11
Slide 15: Asia Business - Front-End Presence in All the Markets
Asia Business – Front-End Presence in All the Markets Provides Additional Edge Front-End Presence in 10 Asian Markets Kazakhstan Kyrgyzstan Uzbekistan Turkmenistan Jordan Vietnam Philippines Sri Lanka Overview Revenue (INR Cr.) ◼ Branded generics presence in 10 countries ◼ Philippines and the Middle
Slide 16: Africa Branded Business Overview
Africa Branded Business Overview 13
Slide 17: Africa Business - Branded Business Growing at Double-Digit Rate
Africa Business – Branded business Growing at Healthy Double-Digit Rate Over the Last Three Years Front-end Presence in 20 African Countries Overview Senegal ◼ Spread over 20 countries across Franco Africa and Anglo Africa ◼ 2nd largest player in Franco Africa ◼ Therapy presence across cardiac, diab
Slide 18: Africa Institutional Business Overview
Africa Institutional Business Overview 15
Slide 19: Africa Institutional Business - Tender-Driven Business
Africa Institutional Business – Tender-Driven Business with Supplies to Key Funding Agencies Overview Key Customers 1st Generic Company to obtain WHO Pre-Qualification for difficult anti-malarial product Artemether + Lumefantrine Tabs Treated 1 Billion+ Patients Revenue (INR Cr) 271 244 206 110 FY20
Slide 20: US Business Overview
US Business Overview 17
Slide 21: US - Gradually Scaling Generics Business Driven by New Launches
US – Gradually Scaling Generics Business Driven by New Launches Overview Revenue (INR Cr) ✓ Started off in 2013 with own front-end 637 696 516 364 ✓ Strategy of selective play in the market with the launch of limited competition products FY20 FY21 FY22 H1 FY23 New Product Approvals Expected to Pick
Slide 22: Manufacturing and R&D Overview
Manufacturing and R&D Overview 19
Slide 23: Expansive Manufacturing Footprint with 7 World Class Facilities
Expansive Manufacturing Footprint with 7 World Class Facilities… Dahej, Gujarat Paithan, Aurangabad ✓ Tablets, capsules, ✓ Tablets, capsules powder & jelly & dry powder Pithampur, Madhya Pradesh Guwahati, Assam ✓ Tablets, sterile ✓ Tablets and eye drops, Capsules ointments & jelly ✓ India & EMs Chit
Slide 24: Supported by a State-of-the-Art R&D Centre in Mumbai
…Supported by a State-of-the-Art R&D Centre in Mumbai, India Ajanta Research Centre, Mumbai Strong Capabilities ✓ ✓ Analytical Method Formulation Development Development & Validation ✓ API Development ✓ Bio-Analytical Testing Lab ✓ Drug Regulatory Affairs ✓ IPR & QA Wide Spectrum of Dosage Form Capa
Slide 25: Strategy Initiatives and Levers for Growth
Strategy Initiatives and Levers for Growth 22
Slide 26: Strategy Initiatives and Levers for Growth
Strategy Initiatives and Levers for Growth ✓ Enhance our capital allocation to Branded Generic business of India, Asia & Africa. ✓ Productivity Enhancement of Field Force to Improve Profitability. ✓ Aggressive product registrations across the Branded Generic markets. ✓ Addressable branded generic ma
Slide 27: Sustainability Initiatives
Sustainability Initiatives 24
Slide 28: Effective Business Practices with Key Principles in Place
Effective Business Practices with Key Principles in Place ✓ Environment friendly process ✓ Ensures resource efficiency and low-carbon processes ✓ 50% from Green (Solar) Energy by FY23 & technologies deployment ✓ Zero liquid discharge ✓ Recycle and reuse of wastewater ✓ Promoting Green across all man
Slide 29: Financial Overview
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Slide 30: Track Record of Rapid Growth and High Profitability
Track Record of Rapid Growth and High Profitability Revenue EBITDA and Margin % PAT and Margin % (INR Cr.) (INR Cr.) (INR Cr.) 14% 26.4% 34.6% 27.8% 22.1% 18.1% 22.6% 21.3% 17.5% CAGR 3,341 2,890 999 2,588 929 713 1,889 683 654 468 418 331 FY20 FY21 FY22 H1-FY23 FY20 FY21 FY22 H1-FY23 FY20 FY21 FY22
Slide 31: Attractive Return Metrics and Healthy Cash Flows
Attractive Return Metrics and Healthy Cash Flows ROCE %(1) ROE %(2) CFO and Cash Conversion Ratio(3) (INR Cr.) 29% 66.9% 57.7% 60.5% 88.7% 23% 23% 27% 19% 576 562 25% 457 371 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 H1-FY23 ✓ ✓ High cash conversion ratio of ~60% Strong focus on capital efficient
Slide 32: Overview of Capex Cycle
Overview of Capex Cycle Aggressive Capex Cycle Over FY17-22 (INR Cr.) 343 299 263 239 172 149 FY17 FY18 FY19 FY20 FY21 FY22 Invested close to ~INR 15b in capex over the last five years, in its Guwahati / Dahej / Paithan facilities These facilities are now operating at utilization levels of 50-55% an
Slide 33: Management Team & Industry Accolades
Management Team & Industry Accolades 30
Slide 34: Led by an Experienced Management Team
Led by an Experienced Management Team… Experienced Management Team… Yogesh Agrawal Rajesh Agrawal Managing Director Joint Managing Director Years of experience: 26+ Years of experience: 23+ …Recognized by the Industry… …With Strong Corporate Governance India's Best ✓ Strong board & best governance p
Slide 35: Widely Recognized for its Efforts
…Widely Recognized for its Efforts Awarded Young Maker of the Year by the hands of Hon. Prime Minister Narendra Modi Giants of Tomorrow 3rd Largest Wealth Creator CEO of the Year – Next Gen by the hands of by the hands of by the hands of Mr. Nitin Gadkari Mr. Piyush Goyal Mr. Raman Singh 1. Union Mi
Slide 36: Appendix
Appendix 33
Slide 37: P&L Snapshot
P&L Snapshot (INR Cr) FY20 FY21 FY22 H1-FY23 Revenue from operations 2,588 2,890 3,341 1,889 COGS (656) (645) (832) (540) Gross profit 1,932 2,245 2,509 1,349 Margin (%) 75% 78% 75% 71% Employee benefit expense (486) (548) (646) (369) Other expenses (763) (698) (934) (562) EBITDA 683 999 929 418 Mar
Slide 38: Balance Sheet
Balance Sheet (INR Cr) FY20 FY21 FY22 H1-FY23 ASSETS Non-current assets Property, plant and equipment 1,447 1,449 1,442 1,414 Capital work-in-progress 132 108 153 182 Right for use assets 25 92 70 74 Other non-current assets 73 103 126 130 Sub-total - Non-current assets 1,677 1,752 1,791 1,800 Curre
Slide 39: Cash Flow Statement
Cash Flow Statement (INR Cr) FY20 FY21 FY22 H1-FY23 A. Cash flow from operating activities Profit before tax 664 900 909 425 Adjustment for non-operating, non-cash items 71 115 92 12 Operating cash flow before working capital changes 735 1,015 1,002 437 Changes in working capital: Decrease / (increa