Ajanta Pharma Limited · NSE:AJANTPHARM

Ajanta Pharma — Q3 FY2018 Earnings Presentation

34 slides from Ajanta Pharma's earnings presentation, Jan 25, 2018

  1. Slide 1: Investor Presentation 3rd Qtr. - FY 2018

    Investor Presentation 3rd Qtr. - FY 2018 25th January, 2018 1 of 34

  2. Slide 2: Content

    Content Content INDIA 1 India 2 Global 3 Infrastructure 4 Financial Highlights 5 25th January 2018 Recognition 2 of 34

  3. Slide 3: India

    INDIA 1 India 25th January 2018 3 of 34

  4. Slide 4: India Branded Generics

    India Branded Generics India INDIA Therapeutic Segments Team & Products Differentiation  Cardiology  15 Divisions  Sizeable chronic portfolio  Ophthalmology  3,000+ MRs  Consistent Innovation  Dermatology  270+ Products  Leadership in sub  Pain Management  About 60% products therapeutic s

  5. Slide 5: India Sales

    India Sales India INDIA India Branded Sales1 - Q3 (Rs. cr.) India Branded Sales1 - 9M (Rs. cr.) Pain 6% Ophthalmology 200 500 460 0% 462 4% 30% 149 155 400 150 300 100 Therapeutic Break-up IMS MAT 200 50 December 2017 100 0 Cardiology 0 Q3 FY 2017 Q3 FY 2018 41% 9M FY 2017 9M FY 2018 Dermatology 23%

  6. Slide 6: Faster than Industry - IPM

    Faster than Industry - IPM India 40% 36% 29% 30% 26% 23% 20% 14% 12% 10% 10% 9% 10% 5% 0% Mar-2014 Mar-2015 Mar-2016 Mar-2017 Dec-2017 IPM Ajanta Pharma 25th January 2018 IPM = Indian Pharmaceutical Market Source: IMS MAT 6 of 34

  7. Slide 7: Within Segments Ajanta Way Ahead

    Within Segments Ajanta Way Ahead India 18% 17% 16% 16% 14% 13% 12% 10% 9% 9% 9% 8% 6% 6% 5% 4% 3% 2% 0% Pharma Market Cardiology Ophthalmology Pain Mgt. Dermatology -2% -1% IPM Ajanta Pharma 25th January 2018 IPM = Indian Pharmaceutical Market Source: IMS MAT December 2017 7 of 34

  8. Slide 8: IPM - Ranking

    IPM - Ranking India Rank Dec 2017 Dec 2016 Mar 2005 Ophthal 2 4 28 Derma 14 13 98 Cardio 16 20 38 Pain 42 44 NA Ajanta 32 33 88 25th January 2018 IPM = Indian Pharmaceutical Market Source: IMS 8 of 34

  9. Slide 9: Global

    25th January 2018 2 Global 9 of 34

  10. Slide 10: Global Presence

    Global Presence Global USA West Asia CIS (3 Countries) (6 Countries) South East Asia (3 Countries) India Africa (19 Countries) 25th January 2018 10 of 34

  11. Slide 11: USA

    USA Global ANDA Status  Approval : Final – 20 (1 in Q3), Tentative - 2  Under approval : 16 (Filed 1 in Q3)  Filing target FY 2018 : ~10-12 (Filed 6 in 9M) Sales & Marketing  17 Products commercialized (2 in Q3)  Price erosion slowing down  Gaining market share with better execution 25th Janua

  12. Slide 12: Africa

    Africa Global Products  Product Registrations – 1,359  Segments - Anti Malaria, Multivitamin, Cardio, Antibiotic, Gynaec, MED, Pain Sales & Marketing  Branded business post healthy growth  Institution business shrinks impacting overall Africa – 19 countries Africa growth  Expanding market prese

  13. Slide 13: Asia

    Asia Global Products  Product Registration - 350 CIS  Segments – Cardio, Pain, GI, Diabetes, (6 countries) Antibiotic, Derma, Anti Histamine Sales & Marketing WEST ASIA (3 countries) SOUTH EAST ASIA  Enhanced focus showing results (3 countries)  Increased thrust with product addition  Currency

  14. Slide 14: Export Sales – Q3 (Consolidated)

    Export Sales – Q3 (Consolidated) Global Regional Break-up (Rs. cr.) Total Exports (Rs. cr.) (14%) 250 211 15% 79% 500 200 180 161 415 150 400 361 21% 90 100 71 59 300 94% 50 1 3 200 0 Africa Asia USA Others Q3 FY 2017 Q3 FY 2018 100 Rs. cr. 0 Q3 FY 2017 Q3 FY 2018 Gth Q3 FY 2017 Q3 FY 2018 Africa 21

  15. Slide 15: Export Sales – 9M (Consolidated)

    Export Sales – 9M (Consolidated) Global Regional Break-up (Rs. cr.) Total Exports (Rs. cr.) (2%) 700 579 567 600 1200 8% 1,086 29% 500 1,002 1000 400 361 281 9% 300 800 200 139 152 98% 600 100 3 6 0 400 Africa Asia USA Others 9M FY 2017 9M FY 2018 200 Rs. cr. 0 9M FY 2017 9M FY 2018 Gth 9M FY 2017 9

  16. Slide 16: Total Consolidated Sales

    Total Consolidated Sales Global Q3 Revenue Break-up (Rs. cr.) 9M Revenue Break-up (Rs. cr.) 12% 6% 700 1800 1,567 575 1476 600 15% 515 1500 8% 500 415 1200 1,086 1002 400 361 4% 1% 900 300 600 474 481 200 154 160 100 300 0 0 India Exports Total Revenue India Exports Total Revenue Q3 FY 2017 Q3 FY 20

  17. Slide 17: Infrastructure

    INDIA 3 Infrastructure 25th January 2018 17 of 34

  18. Slide 18: Prepared for next growth

    Prepared for next growth Infrastructure Formulation Manufacturing  3 existing facilities in Aurangabad, Maharashtra (1 USFDA & WHO Pre-Q approved)  New US FDA approved facility in Dahej (Gujarat)  New facility in Guwahati (Assam), 2nd phase under implementation  1 Facility at Mauritius API Manuf

  19. Slide 19: R&D Thrust

    R&D Thrust Infrastructure R&D spend & % of Oper. Income (Excluding Capex) Rs. cr. 180 8% 160 153 140 6% 120 106 100 5% 80 4% 70 60 4% 50 37 40 20 - FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 25th January 2018 • Adding Spend - Q3 FY 2018 - Rs. 43 cr. (7%), 9M FY 2018 - Rs.138 cr. (9%) • New Building nea

  20. Slide 20: Financial Highlights

    INDIA 4 Financial Highlights 25th January 2018 20 of 34

  21. Slide 21: P&L Synopsis – Q3 FY 2018 (Consolidated)

    P&L Synopsis – Q3 FY 2018 (Consolidated) Financials Q3 Q3 % Rs. cr. % % FY 2018 FY 2017 Growth Exports 415 71% 361 68% 15% Domestic 160 27% 154 29% 4% Other Op. Income 12 2% 18 3% (33%) Income from Operations 587 533 10% EBITDA 204 35% 177 33% 15% PBT 198 34% 181 34% 9% PAT 147 25% 143 27% 3% Total

  22. Slide 22: P&L Synopsis – 9M FY 2018 (Consolidated)

    P&L Synopsis – 9M FY 2018 (Consolidated) Financials 9M 9M % Rs. cr. % % FY 2018 FY 2017 Growth Exports 1,086 68% 1,002 66% 8% Domestic 481 30% 474 31% 1% Other Op. Income 33 2% 48 3% (31%) Income from Operations 1,601 1,525 5% EBITDA 519 32% 526 34% (1%) PBT 495 31% 504 33% (2%) PAT 374 23% 393 26%

  23. Slide 23: Detailed P&L – Q3 FY 2018 (Consolidated)

    Detailed P&L – Q3 FY 2018 (Consolidated) Financials Q3 Rs. cr. FY 2018 FY 2017 Income from Operations 587 533 Other Income 15 2% 19 3% Total Income 602 552 Materials consumed 110 18% 106 19% Employee Benefit 95 16% 77 14% Finance Cost 0 0% 0 0% Depreciation 15 2% 15 3% Other Expenses 184 31% 172 31%

  24. Slide 24: Detailed P&L – 9M FY 2018 (Consolidated)

    Detailed P&L – 9M FY 2018 (Consolidated) Financials 9M Rs. cr. FY 2018 FY 2017 Income from Operations 1,601 1,525 Other Income 20 1% 21 1% Total Income 1,621 1,546 Materials consumed 313 19% 322 21% Employee Benefit 271 17% 220 14% Finance Cost 0 0% 1 0% Depreciation 43 3% 42 3% Other Expenses 499 3

  25. Slide 25: Consistent Track Record (Consolidated)

    Consistent Track Record (Consolidated) Financials Consolidated Total Income PAT (Rs. cr.) & PAT Margin (%) (Rs. cr.) 12% 19% 21% 24% 25% 2,026 507 1,771 416 1,502 1,230 310 942 234 112 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 25th January 2018 25 of 34

  26. Slide 26: Consistent Track Record (Consolidated)

    Consistent Track Record (Consolidated) Financials EBITDA Margin Net Margin (%) (%) 25% 34% 34% 35% 24% 31% 21% 19% 24% 12% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 RONW ROCE (%) (%) 47% 50% 43% 45% 44% 40% 37% 41% 37% 32% 25th January 2018 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2

  27. Slide 27: Consistent Track Record (Consolidated)

    Consistent Track Record (Consolidated) Financials EPS Dividend per share (Rs.) (FV Rs. 2/-) 13 (Rs.) 58 47 8 35 6 27 4 13 3 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Dividend Payout Book Value per share 178 (%) (Rs.) 25% 135 18% 19% 18% 15% 96 67 45 25th January 2018 2013 2014 2015 2016 2017

  28. Slide 28: Consistent Track Record (Consolidated)

    Consistent Track Record (Consolidated) Financials Total Debt / Equity Receivable Days (Ratio) (Nos.) 0.32 79 60 63 65 61 0.22 0.09 0.07 0.00 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Inventory Days Payable Days (Nos.) 134 (Nos.) 59 99 94 48 43 40 85 82 40 25th January 2018 2013 2014 2015 201

  29. Slide 29: Recognition

    INDIA 5 Recognition 25th January 2018 29 of 34

  30. Slide 30: Forbes India Leadership Award 2017

    Forbes India Leadership Award 2017 Recognition Nominated Mr. Yogesh & Rajesh Agrawal (MD & Jt. MD) Nominated for 25th January 2018 “Next Generation Entrepreneur of the year” under Forbes Leadership Award 2017 30 of 34

  31. Slide 31: Improved Ranking

    Improved Ranking Recognition Publication Sales Rank Profit Rank Business Today 327 102 Business India 390 115 Business Standard 412 - Business World 441 - Economic Times 465 - Fortune 500 470 164 25th January 2018 31 of 34

  32. Slide 32: Fastest Wealth Creator

    Fastest Wealth Creator Recognition 25th January 2018 Ajanta Pharma Listed as Fastest Wealth Creator for the 3rd year in a row by Motilal Oswal (Dec 2017) 32 of 34

  33. Slide 33: Thank You

    For updates and company information please visit our website: www.ajantapharma.com For specific queries, contact: Rajeev Agarwal Thank You [email protected] 022-66061377 Ajanta Pharma Limited Ajanta House, Charkop, Kandivli (W), Mumbai 400 067 CIN No. - L24230MH1979PLC022059 25th Janua

  34. Slide 34: Disclaimer

    Disclaimer This presentation may include certain ‘forward looking statements’, based on current expectations, forecasts and assumptions within the meaning of applicable laws and regulations. They are subject to risks and uncertainties which could cause actual outcomes and results to differ materiall

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