Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q1 FY2021 Earnings Presentation
33 slides from Neuland Laboratories's earnings presentation, Aug 4, 2020
Slide 1: Exchange filing cover letter: Press Release
N EU LAN D WHIRf orroRTUNlTY IIE<':OM~S REA liTY Neuland Laboratories limited SanaIi Info Park, 'N 810ck, Ground Floor, 8-2-120/1 13 Road No.2, Banjara Hills Hyderabad - 500 034. Telangana, India. Tel: 040 30211 600 /23551081 Fax: 040 30211602 Email: [email protected] August 4, 2020 www.neu la
Slide 2: Neuland Q1FY21 income at Rs.206.1 crore; up 13.5%
Neuland Q1FY21 income at Rs.206.1 crore; up 13.5% EBITDA margins improve by 619 bps Hyderabad, India, August 4, 2020 – Neuland Laboratories Limited (NLL) (NSE: NEULANDLAB; BSE:524558), a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates and custom
Slide 3: Q1 FY21 Earnings Call; About Neuland Laboratories Limited
Q1 FY21 Earnings Call The company will conduct a one-hour Earnings call at 17:00 hrs. IST on Tuesday, August 4th, 2020 where the management will discuss the Company’s performance and answer questions from participants. To participate in this conference call, please dial the numbers provided below te
Slide 4: Earnings Presentation Q1FY21
Earnings Presentation Q1FY21 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS Confidential. © 2020 Neuland Laboratories Ltd. All rights reserved. 1
Slide 5: 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 6: Table of Contents
Table of Contents 1 Q1FY21 Highlights 2 Business Overview 3 Capabilities 4 Financials 5 Outlook
Slide 7: Q1 FY21 Highlights
Q1 FY21 Highlights 4
Slide 8: Management Speak
Management Speak - Sucheth Davuluri - Saharsh Davuluri Vice-Chairman and Chief Executive Officer Joint Managing Director “We have turned in another strong quarter with “CMS continues to drive our overall revenue highest ever quarterly revenues of Rs. 206.1 cr. momentum; the growth is attributable to
Slide 9: Operational Highlights – YoY
Operational Highlights – YoY § Total income increased by 13.5% from Rs.181.5 crore in Q1FY20 to Rs. 206.1 crore in Q1FY21 due to growth in both GDS and CMS businesses. § Prime growth largely led by Mirtazapine and Labetalol § Specialty business growth on account of contribution from multiple product
Slide 10: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) QoQ YoY Particulars (Rs. Cr) Q1FY21 Q4FY20 Q1FY20 (Growth%) (Growth%) Total Income 206.1 193.6 6.4% 181.5 13.5% EBITDA 34.4 31.8 8.4% 19.1 80.4% EBITDA Margin 16.7% 16.4% 30 bps 10.5% 619 bps Profit Before Tax 20.2 17.1 18.3% 7.5 169.2% Profit Before Tax Margin 9
Slide 11: Key Operating Metrics
Key Operating Metrics YoY Analysis Quarter on Quarter Movement 8% 6% 6% 6% 5% 6% 19% 21% 26% 25% 28% 21% 23% 27% 18% 27% 26% 25% 50% 51% 46% 46% 42% 42% Q1FY20 Q1FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Prime Niche/Speciality CMS Others Prime Niche/Speciality CMS Others 8
Slide 12: Key Operating Metrics - CMS Revenue Split
Key Operating Metrics - CMS Revenue Split 27 30 114 21 40 17 19 26 12 27 66 22 22 9 18 75 7 8 9 5 6 26 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Rs. In Cr FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 Rs. In Cr FY19 FY20 Commercial 12 9 19 26 17 40 30 27 21 Commercial 66 114 Development 7 5 8 6 18 9 22 27 22 Develo
Slide 13: No of CMS Active Projects Increasing
No of CMS Active Projects Increasing Q1 FY21 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 12 4 5 4 9 6 40 Intermediate 7 4 2 6 8 9 36 Grand Total 19 8 7 10 17 15 76 Q4 FY20 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 12 4 5 5 9 6 41 Intermediate 7 4 2 5 8 9 35
Slide 14: Steps Taken to Overcome COVID-19 Impact
Steps Taken to Overcome COVID-19 Impact § Collaborative approach across all teams including plant head, HR, EHS and COVID-19 response team for continuation of operations § Our employees worked in a dedicated manner in smoothening the operational challenges in the early part of the quarter § These ef
Slide 15: Business Overview
Business Overview 12
Slide 16: Company Overview
Company Overview Legacy Scale Capability Reach 36+ years in pharma 3 regulatory approved Portfolio of 75+ 80+ countries of with robust quality manufacturing products across 10 presence systems, regulatory facilities with 731 KL therapeutic categories and compliance capacity framework 75% of revenues
Slide 17: Our Journey - Key Milestones
Our Journey - Key Milestones Laying Strong Foundation Deepening our Capabilities Increased Sustainable Growth 1984-2003 2004-2012 2013 -Today 2020 100 Mn+ 2019 Revenue Increased Over 75 Live flow of CMS Projects 2018 projects 15th US FDA Acquisition from CMS Audit of Unit 2 2017 of advanced JAPAN Am
Slide 18: Business Verticals
Business Verticals Work executed exclusively for the customers on Mature APIs, typically with products at various phases high competition in the API of their life-cycle Custom space Manufacturing Prime Solutions (CMS) Prime APIs and Specialty APIs collectively form Specialty Generic Drugs Substance
Slide 19: Our Global Presence
Our Global Presence NORTH AMERICA 31% EUROPE 48% APAC 4% JAPAN 5% MENA 8% INDIA 1% BD Office in Princeton, New Jersey Since 2004 LATAM 3% Our BD Office in JAPAN Since 2007 10+ CMS projects with Japanese Innovators Working with a Big Japanese Pharma company for the * % Refers to FY20 Sales by end mar
Slide 20: Generic Drug Substance (GDS)
Generic Drug Substance(GDS) Prime APIs Capability Business Approach Strategy Forward § 3 US FDA and EU GMP § Work on molecules either § Maintain leadership compliant manufacturing with a business leadership position in key molecule facilities approach or partnership § Work on process § Collective ca
Slide 21: Custom Manufacturing Solutions (CMS)
Custom Manufacturing Solutions(CMS) Services Business Approach Strategy Forward § Manufacturing API to § Local presence in US § Add depth in technical customer and Japan with capabilities specifications technical as well as § Investment in QBD § Designing and commercial labs, process developing empl
Slide 22: Competitive Advantage
Competitive Advantage CMS (Custom GDS (Generic Drug Substances) Manufacturing Solutions) Sizeable Product Excellent Basket Collaborative skills Transparent Balanced Communication & Portfolio Project Management Presence in Customer-centric approach helps to Regulated provide adequate Market focus and
Slide 23: Capabilities
Capabilities 20
Slide 24: Neuland Manufacturing Facilities
Neuland Manufacturing Facilities U1, Bonthapally, U2, Pashamylaram, U3, Gaddapotharam, Unit Hyderabad 222.5 KL Hyderabad 310.2 KL Hyderabad 197 KL Year of 1986 1994 2017 establishment Mirtazapine, Sotalol Hcl, Levetiracetam, Levofloxacin, Ciprofloxacin Hcl, Entacapone, Products including Key Key pro
Slide 25: State-of-the-art R&D Centre
State-of-the-art R&D Centre Infrastructure • 15 Development Labs with space for expansion • 60 Fume hoods R&D Facility, Hyderabad • Analytical Labs • Dedicated kilo Lab for Scale up • Dedicated Labs for Peptides • Separate facility for D2 analogues Significant R&D Achievements: • Several NCE APIs ad
Slide 26: Regulatory Filings
Regulatory Filings 30 Filings with 10 19 Japanese DMF China DMF filed Health Canada 55 filed DMFs with USFDA 213 18 22 ROW filings including Turkey, filings with filings with TGA KFDA Korea Mexico, Brazil etc ~489 EUDMF filings across Germany, 24 CEPs Received for different 880+ France, Poland, prod
Slide 27: Financials
Financials 24
Slide 28: Income Statement
Income Statement Financial Performance Highlights 800 • Revenue CAGR of 19.8% for FY18-20 led by growth in all 3 businesses 600 • EBITDA growth of 38.9% CAGR in 100 FY18-20 due to high margin CMS business and increase in GDS contribution * 400 • Change in business mix with increasing amount of margi
Slide 29: Balance Sheet
Balance Sheet Particulars Mar-18 Mar-19 Mar-20 (Rs. Cr) Current Ratio (x) ROCE (%) Shareholders' 7.6 555 696 706 1.4 funds 1.4 4.0 3.9 1.2 Net Debt 302 194 214 2018 2019 2020 2018 2019 2020 Investments 8 8 8 Fixed Asset Turnover (x) Debt to Equity (x)* Tangible Assets 320 365 395 0.5 3.2 2.9 2.3 0.3
Slide 30: Outlook
Outlook 27
Slide 31: Growth Strategy for Business
Growth Strategy for Business Business Scale Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS and CMS accelerate business growth business Chemistry Relationships Deploy advanced Leverage on Long – chemistry skills to add standing relationships with
Slide 32: Contact us
Contact us About Neuland Laboratories Limited For over 36 years, Neuland Laboratories Ltd. (BSE:524558, For further information contact: NSE: NEULANDLAB) has been at the forefront of manufacturing APIs through its cGMP manufacturing IR Desk facilities, working with customers in close to 80 countries
Slide 33: Thank you
Thank you Confidential. © 2020 Neuland Laboratories Ltd. All rights reserved. 30
Neuland Laboratories — Q1 FY2021 Earnings Presentation on 6ix