Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Investor Presentation (July 2007)
24 slides from Sun Pharmaceutical Industries's investor presentation, Jul 26, 2007
Slide 1: Creating Lasting Value
Creating Lasting Value Investor Presentation July 07
Slide 2: Disclaimer
Disclaimer 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”, “pl
Slide 3: Revenue Composition
Revenue Composition 2006-07 Annual sales : Rs 22373 million, 3 year CAGR 30% US Generics 23% Finished Dosage 3 year CAGR 33% India Finished Dosage 3 year CAGR 27% 53% International (ex-US) Finished Dosage 3 year CAGR 45% 9% Dosage Form sales 86% 3 year CAGR 30% 11% International sales 43% 4% Interna
Slide 4: Strategy and Approach
Strategy and Approach Create sustainable revenue streams Focus : Chronic therapies Differentiation : Technically complex products Speed to market Seek cost leadership Vertical integration : Development through Manufacturing (API and Dosage form) to Marketing Optimise operational costs
Slide 5: Growing Steadily
Growing Steadily 7,000 1,681 1,700 6,652 Revenue doubles and Net profit 6,000 1,500 triples in 4 years; continuing the 5,000 1,300 trend despite increasing size 4,000 1,100 900 3,000 700 2,000 500 97-98 98-99 99-00 00-01 01-02 22,000 7,843 8,000 Net Sales (CAGR 31%) Net Profit (CAGR 28%) 20,792 2,00
Slide 6: Sustained Profitability
Sustained Profitability Superior business model Margins consistently higher than peers * 80 Gross Sun Pharma 72 Margin 70 gap 60 60 Peers 50 40 Sun Pharma 38 30 20 Peers 12 Net 10 Margin gap - 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Gross Margin (Sun) Net Margin (Sun) Gross Margin (Other top
Slide 7: Successful At Acquisitions
Successful At Acquisitions Acquired 13 high potential yet under-performing businesses*; successful turnarounds 10,000 40 9,000 35 8,000 8 early 30 7,000 acquisitions 6,000 25 5,000 20 4,000 15 3,000 10 2,000 1,000 5 0 0 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 Net Sales (MINR) Operating
Slide 8: Business Operations
Business Operations ———
Slide 9: India Dosage Form : Strong Base
India Dosage Form : Strong Base Market share 3.3%, growth 13% Leadership in chronic segment; top 3 in over 50% of more than 300 brands No “blockbuster” risk : Top 10 brands contribute 24% of Neuro-Psychiatry, sales 29% Others, 4% Anti-Cancer, 1% Opthalmology, 4% Antiasthamatic & Antiallergic,
Slide 10: Relentless Customer Focus
Relentless Customer Focus Therapy focused marketing by 2200 sales representatives covering 125,000 specialist doctors Strong increase in prescription and sales market share 400 Ranks based on prescription share 350 SPECIALITY 1998 Current Psychiatrist 1 1 300 Neurologist 1 1 Cardiologist 5 1 250
Slide 11: US Generics : The highest priority market
US Generics : The highest priority market Integrated generic manufacturer with flexibility for manufacture onshore / offshore Caraco, the 75% owned US generics subsidiary, markets own and Sun Pharma ANDAs 115 ANDAs filed between Sun and Caraco Approved 35 Caraco : 25, Sun : 9 Pending app
Slide 12: Caraco : Tough market, profitable growth
Caraco : Tough market, profitable growth Sales and Gross Profit grow over 5 times in 4 years 140 Current Market Cap 120 USD 600 million 100 80 USD Millions 60 Market Cap 40 USD 60 million 20 - 2002 2003 2004 05-06 06-07 (20) Net Sales Gross Profit R&D Expenditure Net Income Investor Presentation / 1
Slide 13: Europe Generic Markets
Europe Generic Markets Work with a partner in 3 key markets UK, France and Germany Filings made from an Indian site Offer manufacturing and product development support - no direct market presence planned Acquired an API and Dosage form manufacturing company in Hungary with controlled substan
Slide 14: International Branded Generic Markets
International Branded Generic Markets Less Regulated Markets Product basket width and technology based products as growths driver Replicating the speciality template 26 countries, 1005 products registered and 510 awaiting registration 400 strong local sales force promotes brands to doctors
Slide 15: Speciality API
Speciality API High Margin Regulated Markets Business largely with end users in regulated markets Over 150 speciality APIs across 6 plants Strong regulatory capability 91 DMF / CEP approved or awaiting approval Investor Presentation / 15
Slide 16: Dosage Form Manufacturing
Dosage Form Manufacturing 9 manufacturing sites compliant with international regulatory standards India : 4, US : 3 Over 750,000 sq. ft. area Capacities available for a variety of dosage forms Tablets / Capsules Liquids Semisolids Suppository Injectables / Sterile Vials Dry powder Ampoules E
Slide 17: API Manufacturing
API Manufacturing 6 World class locations with all sites ISO 14001, ISO 9002 approved India : 5, Hungary : 1 Reactor capacity 1200 KL with over 650,000 sq ft area Over 25 API processes scaled up annually Panoli and Ahmednagar (both India) International regulatory approvals: USFDA, Europe
Slide 18: Research & Development
Research & Development ———
Slide 19: Research and Development
Research and Development Generic R&D spend over 10% of net sales Strong research teams in reverse engineering, dosage form development, biological support, chemistry Balancing the risk Immediate term : ANDA, DMF, Products for India Medium term : Drug delivery systems 2 R&D centers with o
Slide 20: Financial Highlights
Financial Highlights ———
Slide 21: Financials
Financials (Rs million) 2003-04 2004-05 2005-06 2006-07 P&L Summary Net Sales 9,442 11,433 15,945 20,792 Gross Profit 7,056 8,211 11,073 15,025 EBITDA 3,933 4,167 4,905 6,724 Net Profit 3,157 3,962 5,733 7,843 R&D Spend 1,268 1,428 2,014 2,924 BS Summary Shareholders Funds 8,159 11,307 15,902 - Loan
Slide 22: Financial Ratios
Financial Ratios Growth (%) Net Sales 17.5 21.1 39.5 30.4 Gross Profit 36.1 16.4 34.9 35.7 EBITDA 41.5 5.9 17.7 37.1 Net Profit 26.9 25.5 44.7 36.8 Margins (%) Gross Margin 74.7 71.8 69.4 72.3 EBITDA Margin (%) 41.7 36.4 30.8 32.3 Net Margin 33.4 34.7 36.0 37.7 Return (%) Return on Average Capital E
Slide 23: Future
Future Closing the recently announced deal and integrating Taro Pharma 2007-08 Guidance (excluding Taro Pharma) Consolidated sales increase 15-18% R&D Spend 8-10% of Net Sales Capex MINR 1250 30 ANDAs to be filed Investor Presentation / 23
Slide 24: Thank you
In addition to Company data, data from IMS – ORG, CMARC, Stock Exchanges and industry publications has been used for this presentation. Thank you For updates and specific queries, please visit www.sunpharma.com or feel free to contact Uday Baldota Mira Desai Tel : +91 22 6645 5645, Ext 605 Tel : +91
Sun Pharmaceutical Industries — Investor Presentation (July 2007) on 6ix