Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q2 FY2022 Earnings Presentation
35 slides from Neuland Laboratories's earnings presentation, 2021
Slide 1: Earnings Presentation Q2 FY22
Earnings Presentation Q2 FY 22 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS
Slide 2: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 3: Table of Contents
Table of Contents Q2 & H1 FY-22 1 HIGHLIGHTS 2 BUSINESS OVERVIEW 3 CAPABILITIES 4 FINANCIALS 5 OUTLOOK 3
Slide 4: Q2 & H1 FY-22 Highlights
Q2 & H1 FY-22 HIGHLIGHTS
Slide 5: Management Speak
Management Speak SUCHETH DAVULURI “Our GDS business delivered growth led by the specialty segment. We believe that our sustainable operations amid these uncertain times demonstrates our execution capabilities. We are confident that our differentiated strategy of delivering differentiated products to
Slide 6: Key Highlights Q2 FY22
Key Highlights Q2 FY22 Business Highlights Financial Highlights ❖ In Prime API, Mirtazapine, Labetalol & ❖ Total income was Rs. 258.1 crore in Levofloxacin performed well even as Q2FY22, an increase of 6.7% there was a decrease in revenues ❖ EBITDA margin decreased by 40 bps ❖ Specialty had a high g
Slide 7: Key Highlights H1 FY22
Key Highlights H1 FY22 Business Highlights Financial Highlights ❖ Growth from development projects ❖ Total income was Rs. 461.1 crore in was offset by Inventory destocking at H1FY22, an increase of 2.9% customers’ end ❖ EBITDA margin decreased by 160 bps ❖ Unit 3 ramping up driving business from 16.
Slide 8: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) YoY QoQ YoY Particulars (Rs. Cr) Q2FY22 Q1FY22 Q2FY21 H1FY22 H1FY21 (%) (%) (%) Total Income 258.1 202.9 27.2% 242.0 6.7% 461.1 448.1 2.9% EBITDA 43.1 27.7 55.8% 41.4 4.1% 70.7 75.8 (6.7)% EBITDA Margin 16.7% 13.6% 310 bps 17.1% (40) Bps 15.3% 16.9% (160) Bps Prof
Slide 9: Financials (Standalone)
Financials (Standalone) Revenue (Rs. Cr) EBITDA (Rs. Cr) and EBITDA Margin (%) 259 258 47 246 461 19.0% 43 76 40 16.7% 16.9% 203 15.4% 13.6% 28 448 71 15.3% Q3FY21 Q4FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 H1FY21 H1FY22 EPS (Rs) 28 PAT (Rs. Cr) 23 8.1% 21 10.9% 36 6.3% 16 27 7.9
Slide 10: Key Operating Metrics
Key Operating Metrics YoY Analysis Quarter on Quarter Movement 2% 4% 2% 8% 3% 5% 27% 25% 22% 37% 23% 27% 22% 24% 22% 21% 23% 19% 47% 49% 49% 53% 43% 45% H1 FY 21 H1 FY 22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Prime Niche CMS Others Prime Niche CMS Others 10
Slide 11: Business Salience (Overall Company)
Business Salience (Overall Company) PRODUCT YoY Analysis QoQ Movement 58% 60% 60% TOP 10 50% 57% 55% TOP 5 40% 42% 40% % of Total revenue 38% 35% 39% H1 FY21 H1 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 CUSTOMER YoY Analysis QoQ Movement 57% 52% 53% 51% 52% 46% 40% 39% 44% 31% 37% 39% HI FY21 HI FY22 Q3
Slide 12: Business Salience (Prime)
Business Salience (Prime) H1 H1 Q3 Q4 Q1 Q2 FY-21 47% FY-22 49% 43% FY21 49% 53% 45% FY21 FY22 FY22 TOP 10 PRODUCT YoY Analysis QoQ Movement TOP 5 92% 94% 96% (of Prime revenue) 91% 92% 88% 77% 78% 77% 67% 74% 71% HI FY21 HI FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 CUSTOMER QoQ Movement YoY Analysis 61%
Slide 13: Business Salience (Niche/Speciality)
Business Salience (Niche/Speciality) H1 H1 Q3 Q4 Q2 Q2 FY-21 24% FY-22 22% 19% FY21 21% 22% 22% FY21 FY22 FY22 YoY Analysis QoQ Movement TOP 10 PRODUCT TOP 5 92% 89% 91% 91% (of Niche/Speciality 88% 83% Revenue) 77% 67% 63% 64% 56% 60% HI FY21 HI FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 CUSTOMER YoY Ana
Slide 14: Business Salience (CMS)
Business Salience (CMS) H1 H1 Q3 Q4 Q1 Q2 FY-21 27% FY-22 25% 37% FY21 23% 22% 27% FY21 FY22 FY22 PRODUCT YoY Analysis QoQ Movement 99% 99% TOP 10 94% 88% TOP 5 88% (of CMS revenue) 84% 92% 83% 77% 72% 65% 65% HI FY21 HI FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 CUSTOMER YoY Analysis QoQ Movement 94% 98%
Slide 15: Key Operating Metrics – CMS Revenue Split
Key Operating Metrics – CMS Revenue Split Rs. In Cr Commercial Development YoY Analysis Quarter on Quarter Movement 119 114 90 37 71 114 70 45 60 14 21 44 77 23 56 49 45 39 21 H1-FY21 H1-FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 15
Slide 16: Number of Active CMS Projects
Number of Active CMS Projects Q2 FY22 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 15 3 8 4 10 7 47 Intermediate 7 5 2 0 8 11 33 Grand Total 22 8 10 4 18 18 80 Q2 FY21 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 14 4 6 3 10 6 43 Intermediate 7 4 2 5 8 9 35 Gran
Slide 17: Business Overview
BUSINESS OVERVIEW
Slide 18: Our Journey – Key Milestones
Our Journey – Key Milestones Laying Strong Foundation Deepening our Capabilities Increased Sustainable Growth 1984 - 2003 2004 - 2012 2013 -Today Strategic alignment of R&D Acquisition Separate R&D business towards Facility of advanced Centre Established niche API’s & approved Intermediates 100 Mn+
Slide 19: Generic Drug Substance (GDS)
Generic Drug Substance (GDS) We started as a Prime API ..Added Speciality molecules for manufacturer… complex products.. Capability Capability ✓ 3 US FDA and EU GMP compliant ✓ High end complex chemistry capabilities manufacturing facilities ✓ Backend support by R&D department ✓ Collective capacity:
Slide 20: On path to being a preferred partner in CMS..
On path to being a preferred partner in CMS.. Services ✓ Manufacturing API to customer specifications ✓ Designing and developing manufacturing processes ✓ Process optimization for competitiveness ✓ Complete CMC partner for the API ✓ Patent protection for processes Business Approach ✓ Local presence
Slide 21: Capabilities
CAPABILITIES
Slide 22: Scaled up Manufacturing Facilities over the years
Scaled up Manufacturing Facilities over the years Hyderabad Location of All Units 233 KL 356 KL 271 KL UNIT 1 UNIT 2 UNIT 3 BONTHAPALLY PASHAMYLARAM GADDAPOTHARAM Year of 1986 1994 2017 Establishment Mirtazapine, Sotalol HCL, Levetiracetam, Ciprofloxacin HCL, Key Levofloxacin, Salmeterol, Products i
Slide 23: Backed up by sound R&D capabilities
Backed up by sound R&D capabilities R&D Facility, Hyderabad Neuland’s R&D facility had been inspected by USDFA in February 2016 without any observations Infrastructure Significant R&D Achievements • 15 Development Labs with space for • Several NCE APIs added in NDA or commercial stage expansion drug
Slide 24: New capabilities built
New capabilities built FBRM HAZARDOUS & WET LABORATORY Dedicated area Particle size for hazardous check for chemical polymorph management achievement and wet lab expansion PEPTIDE LAB PID LABORATORY, To address 9800 sq. ft. new UNIT-III product quality lab with issues, additional 7 impurities hoods
Slide 25: Regulatory Filings Across Geographies
Regulatory Filings Across Geographies 30 Filings with Health Canada 10 20 Japanese DMF filed China DMF filed 57 DMFs with USFDA 19 220 filings with 22 ROW filings including Turkey, KFDA Korea filings with TGA Mexico, Brazil etc ~495 27 EUDMF filings across Germany, CEPs Received for different 900+ F
Slide 26: Global Presence
Global Presence EUROPE NORTH AMERICA 36% APAC 40% 4% JAPAN MENA INDIA 6% 3% 4% BD Office in LATAM Princeton, New Jersey 7% Since 2004 Our BD Office in JAPAN Since 2007 % Refers to Q1 FY22 Sales by End market 26
Slide 27: Neuland Today: Snapshot
Neuland Today: Snapshot Legacy Scale Capability Reach Expertise: 37+ years backed 3 Mfg. Facilities: by robust quality Regulatory Product/ Projects Presence systems, approved with 860 portfolio: 100+ APIs 80+ countries regulatory & KL capacity across therapeutic compliance categories framework R&D:
Slide 28: Financials
FINANCIALS
Slide 29: Continuous Growth…
Continuous Growth… Rs. In Cr FINANCIAL PERFORMANCE HIGHLIGHTS 163 953 ▪ Revenue CAGR of 19.2% for FY 19-21 767 led by growth in all 3 businesses 670 105 ▪ EBITDA growth of 62.8% CAGR in FY 80 461 71 19-21 due to balanced contribution 61 from both GDS and CMS business 29 ▪ Shift to CMS and Speciality
Slide 30: Stable Balance Sheet..
Stable Balance Sheet.. Particulars Mar-19 Mar-20 Mar-21 Sep-21 Current Ratio (x) ROCE (%) (Rs. Cr) 1.47 1.47 11.93 Shareholders 1.42 8.58 696 706 782 803 7.60 ' funds 1.37 3.89 Net Debt 194 214 152 184 2019 2020 2021 H1FY22 2019 2020 2021 H1FY22 Investments 8 8 7 4 Fixed Asset Turnover (x) Debt to E
Slide 31: Macroeconomic factors influencing Neuland
Macroeconomic factors influencing Neuland IMPACT NEULAND RESPONSE Government regulation: ▪ Consistent regulatory audits ▪ Successfully cleared all USFDA audits since inception approvals, audits ▪ Increased scrutiny prior to drug approvals ▪ Consistent record of new drug approvals Environmental audit
Slide 32: Outlook
OUTLOOK
Slide 33: ..Laying Foundation for our Growth Strategy
..Laying Foundation for our Growth Strategy CREATE AN ORGANIZATION THAT RESULTS IN VALUE FOR ALL STAKEHOLDERS BUSINESS SCALE Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS accelerate business and CMS business growth CHEMISTRY RELATIONSHIPS Deploy
Slide 34: Contact Us
Contact Us For over 37 Years, Neuland Laboratories Ltd. For further information contact (BSE:524558, NSE: NEULANDLAB) has been at the forefront of manufacturing APIs through its cGMP manufacturing facilities, working with customers in close IR Desk to 80 countries. Neuland Labs Neuland Labs has deve
Slide 35: Thank You
Thank You Confidential. © 2021 Neuland Laboratories Ltd. All rights reserved.
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