Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Ranbaxy Laboratories — Q4 2011 Earnings Presentation
22 slides from Sun Pharmaceutical Industries's earnings presentation, Feb 23, 2012
Slide 1: Financial Results: Q4 2011 and Full Year 2011
Ranbaxy Laboratories Limited FINANCIAL RESULTS: October – December 2011 (Q4 2011) Full Year 2011 (CY 2011) ARUN SAWHNEY CEO & MD 23 Feb 2012 Post Results Conference Call
Slide 2: Safe Harbor
Safe Harbor 2 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: Key Achievements for Quarter 4, 2011
1/3 Key Achievements for Quarter 4, 2011 3 Financial Robust overall business performance Launched Atorvastatin, generic Lipitor® as First to File (FTF) Healthy EBITDA margins aided by strong FTF performance 736 25% 468 Percent $ Mn 11% Q4 2010 Q4 2011 Q4 2010 Q4 2011 Sales EBITDA/ Sales% Lipit
Slide 4: Key Achievements for 2011
2/3 Key Achievements for 2011 4 Financial Strong business performance Monetized exclusivity opportunities in the year 2,114 1,868 22% 18% Percent $ Mn CY 2010 CY2011 CY 2010 CY 2011 Sales EBITDA/ Sales%
Slide 5: Key Achievements for Quarter & CY 2011
3/3 Key Achievements for Quarter 4 & CY 2011 5 Business Emerging market sales $241 Mn for Q4; $1,003 Mn for CY 11 35% of DF sales for Q4; 51% for 2011 Developed market sales $452 Mn for Q4, $966 Mn for CY 11 65% of DF sales for Q4; 49% for 2011, aided by FTF contribution India: CHC continu
Slide 6: Functional Performance
Functional Performance 6 Manufacturing Mohali SEZ received regulatory approvals from the US FDA, TGA (Australia) & WHO Trace & Track for export packaging, Government regulations Investments planned to grow in emerging markets Research & Development Further improvement in filings and approval
Slide 7: Hybrid Business Model
Hybrid Business Model 7 Synergy with Daiichi Sankyo Front end: Ranbaxy to market Cravit® (Levofloxacin) in Malaysia Expand business in Mexico thru DS; Ranbaxy to extend DS products’ reach to pharmacists in Italy Back end etc.: Multiple opportunities pursued in manufacturing, cost reduction
Slide 8: Other Areas
Other Areas 8 Regulatory Signed Consent Decree with US FDA to address cGMP issues. Provision of $500 Mn in connection with DOJ investigations Received US FDA approval for Mohali SEZ Derivatives Position Exposure of $1.7Bn in 2007. Down to ~$654 Mn by end-2011 Expire by 2015-16 Debt Position
Slide 9: Financial Performance
Financial Performance Q4 & CY 2011 Post Results Conference Call
Slide 10: Sales Performance
Sales Performance 10 Consolidated Revenue Consolidated Revenue Q4 2011 CY 2011 2,114 1,868 736 468 57% 13% CY 2010 CY 2011 $ Mn Q4 2010 Q4 2011 First Pharma Company of Indian origin to have sales in excess of $2Bn! Strong base business sales; continued to grow on Quarter and Full Year basis Su
Slide 11: India
India 11 19,153 17,593 4,469 4,818 8% 9% CY 2010 CY2011 INR Mn Q4 2010 Q4 2011 Growth in India region faster than IPM growth for the year Robust growth in the OTC business (CHC) performance. Ranbaxy is a market leader in its represented category Government policies’ evolution continued
Slide 12: Europe
Europe 12 297 267 75 75 - 11% $ Mn Q4 2010 Q4 2011 CY 2010 CY 2011 Business model calibration in Europe to evolve a robust model for the region Negative impact on the region due to spending cuts and enforcements by governments Concerns on Macro-economic indicators continue
Slide 13: CIS
CIS 13 108 101 31 28 (9%) 6% CY 2010 CY 2011 $ Mn Q4 2010 Q4 2011 Ranbaxy continued to be ranked number 1 in its represented market in Russia and Ukraine Macro-issues yet to evolve in the CIS and Ukraine
Slide 14: Asia Pacific
Asia Pacific 14 85 78 22 22 (1%) 10% CY 2010 CY 2011 $ Mn Q4 2010 Q4 2011 Greenfield manufacturing facility planned in Malaysia to aid higher performance in the region Launched DS innovator products in Singapore and Malaysia during the year
Slide 15: Africa
Africa 15 189 154 41 49 18% 23% CY 2010 CY 2011 $ Mn Q4 2010 Q4 2011 Establish and grow some of the larger markets viz. Egypt and Morocco. Invest in manufacturing capacity in Nigeria Strong sales growth in the region Tender sales in South Africa adversely impacted due to donation stocks from t
Slide 16: Latin America
Latin America 16 80 61 19 13 (33%) (24%) CY 2010 CY 2011 $ Mn Q4 2010 Q4 2011 LATAM sales lower due to continued product supply concerns in the region DS and Ranbaxy exploring synergy opportunities for working together in the market
Slide 17: USA
USA 17 720 600 387 117 232% 20% CY 2010 CY 2011 $ Mn Q4 2010 Q4 2011 Successfully launched Atorvastatin, generic Lipitor®, largest product in the world and in the USA, as a First to File on due date Strong market share in Atorvastatin Healthy base business sales in the USA for the Quarter and
Slide 18: Atorvastatin (Lipitor) Market Share
Atorvastatin (Lipitor®) Market Share 18 80% 76% 2011 2012 60% 44% 43% 40% 40% 40% 39% 40% 41% 42% 37% 38% 40% 33% 32% 33% 35% 35% 37% 37% 37% 36% 23% 27% 29% 27% 28% 27% 20% 25% 23% 23% 22% 13% 0% 0% Ranbaxy Watson Pfizer Launches Takes higher Overtakes Atorva a few share than Innovator to hours aft
Slide 19: Financials Q4 2011: $
Financials Q4 2011: $ 19 Q4 10 Q4 11 Particulars in $ Mn CY 2010 CY 2011 468 736 Sales 1,868 2,114 1 1 Less : Excise duty 3 4 467 735 Net sales 1,865 2,109 10 11 Other operating income 93 44 477 746 Total Operating Income 1,958 2,153 194 215 Total Consumption 689 748 -6 -19 Operating Forex expense/
Slide 20: Operational Performance (excluding Forex and Exceptional Items)
Operational Performance (excluding Forex and Excep items) 20 Q4 10 Q4 11 Particulars $ Mn CY 2010 CY 2011 468 736 Sales 1868 2114 53 188 A. EBITDA 402 381 11% 25% % to Sales 22% 18% 3 (571) B. EBT 459 (523) 1% -78% % to Sales 25% -25% 53 188 A. EBITDA 402 381 6 19 Forex Gain/ (Loss) (6) 44 47 169 Op
Slide 21: Financials Q4 2011: INR
Financials Q4 2011: INR 21 Q4 10 Q4 11 Particulars in INR Mn CY 2010 CY 2011 20,907 37,433 Sales 85,507 99,769 42 53 Less : Excise duty 152 190 20,865 37,381 Net sales 85,355 99,578 423 543 Other operating income 4,253 2036 21,288 37,923 Total Operating Income 89,608 101,614 8,708 10,932 Total Consu
Slide 22: Questions & Answers
RANBAXY Questions & Answers