Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q2 FY2018 Earnings Presentation
24 slides from Neuland Laboratories's earnings presentation, 2016
Slide 1: Investor Presentation Q2FY18
Investor Presentation Q2FY18 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS © 2016, Neuland Laboratories Limited. All Rights Reserved
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: Business Overview
Business Overview © 2016, Neuland Laboratories Limited. All Rights Reserved
Slide 4: Company Overview
Company Overview Legacy Scale Capability Reach 33+ years in 2 regulatory Portfolio of 75+ pharma with approved 80+ countries of products across 10 presence robust quality manufacturing sites therapeutic systems, with ~532.7 KL categories regulatory and capacity 75% of revenues compliance 650+ filing
Slide 5: Our Journey
Our Journey Laying Deepening our On course to Strong Foundation capabilities profitable growth Development Expansion Execution 01 02 03 1984-2003 2004-2012 2013-Today ▪ Incorporation in 1984 and IPO ▪ Investments in capacity ▪ Strategic alignment of business in 1994 expansion towards niche APIs and
Slide 6: 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(2) Custom space Manufacturing Prime APIs Solutions (CMS) Prime APIs and Niche APIs collectively form Generic Niche APIs Drugs Subst
Slide 7: Generic Drug Substance (GDS)
Generic Drug Substance(GDS) Prime APIs Capability Business Approach Strategy Forward ▪ 2 US FDA and EU GMP ▪ Work on molecules ▪ Maintain leadership compliant either with a business position in key manufacturing leadership approach molecule facilities or partnership with ▪ Work on process ▪ Collecti
Slide 8: Custom Manufacturing Solutions (CMS)
Custom Manufacturing Solutions(CMS) Services Business Approach Strategy Forward ▪ Manufacturing API to ▪ Local presence in US ▪ Add depth in customer and Japan with technical capabilities specifications technical as well as using enzymatic ▪ Designing and commercial technology developing employees ▪
Slide 9: Business Mix
Business Mix Revenue by Verticals Revenue by end territory ROW 11% 13% 17% Japan 7% 24% 4% 18% 22% 27% 26% Europe 59% 71% North 65% 57% America 50% 29% FY-14 FY-15 FY-16 FY-17 India CMS NICHE PRIME 1% 9
Slide 10: Capabilities
Capabilities © 2016, Neuland Laboratories Limited. All Rights Reserved 10
Slide 11: Two regulatory approved manufacturing facilities
Two regulatory approved manufacturing facilities Bonthapally, Hyderabad – 222.5 KL Pashamylaram, Hyderabad – 310.2 KL Year of Year of establishment 1994 1986 establishment Employee Employee strength 321 399 strength Ramipril, Mirtazapine, Enalapril Ciprofloxacin Hcl, Entacapone, Key products Maleate
Slide 12: One state of art R&D centre
One state of art R&D centre R&D Facility, Hyderabad* Infrastructure • 11 Development Labs • 60 Fume hoods • Analytical Lab • Kilo Lab dedicated for Scale up • Dedicated Labs for Peptides • Separate facility for D2 analogues Significant R&D Achievements: • Several NCE APIs added in NDA or commercial
Slide 13: Compliance Framework
Compliance Framework Quality Control EHS ▪ Quality Control facilitated with Wet ▪ Hazard and EHS Impact studies regularly Chemistry, Instrumentation & Microbiology conducted Laboratories ▪ 24X7 occupational health center with ▪ Equipped with sophisticated instruments ambulance facility like HPLCs, G
Slide 14: Regulatory Filings
Regulatory Filings 25 5 Filings with Japanese DMF Health Canada 144 51 filed ROW filings including DMFs with Turkey, Mexico, USFDA Brazil etc 11 5 filings with IDLs filed KFDA Korea ~400 EUDMF filings across Germany, 19 CEPs Received for different 650+ France, Poland, products Filings till date Ital
Slide 15: Financials
Financials © 2016, Neuland Laboratories Limited. All Rights Reserved 15
Slide 16: Standalone Financial Performance
Standalone Financial Performance Q2FY18 H1FY18 ▪ Total Operating income was Rs. 1,261.9mn for ▪ Total Operating income was Rs. 2,463.3mn for Q2FY18 as compared to Rs. 1,519.1mn in the H1FY18 as compared to Rs. 3,039.6mn in the corresponding period of the previous year H1FY17, a decrease of 19% refle
Slide 17: Key Operating Metric
Key Operating Metric YoY Analysis Quarter on Quarter Movement 19% 22% 19% 22% 25% 28% 19% 29% 23% 19% 23% 27% 61% 53% 55% 56% 55% 44% Q2FY17 Q2FY18 Q3FY17 Q4FY17 Q1FY18 Q2FY18 CMS NICHE PRIME CMS NICHE PRIME 17
Slide 18: Key Operating Metric: CMS Business Depth
Key Operating Metric CMS Business Depth 10 8 12 12 11 8 9 8 6 8 5 5 4 3 3 4 3 3 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Clinical Commercial *- Quantities taken for validation and launch are considered as Commercial 18
Slide 19: Historical Financials
Historical Financials Financial Performance (INR Cr) Current Ratio (x) 550 100 1.1 1.2 1.2 0.9 0.9 510 464 469 469 2013 2014 2015 2016 17 50 Debt to Equity (x) 350 0 FY13 FY14 FY15 FY16 FY17 1.9 1.5 Sales 464 469 469 510 573 1.2 0.9 0.9 EBITDA 61 73 67 82 88 Net Profit 14 27 16 27 32 2013 2014 2015
Slide 20: Future Strategy
Future Strategy © 2016, Neuland Laboratories Limited. All Rights Reserved
Slide 21: 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 22: Change in Corporate Structure
Change in Corporate Structure The Board of Directors of the Company at their meeting held on August 27, 2016 in-principle approved a proposal to merge Neuland Health Sciences Private Limited (Holding Company- NHSPL) and Neuland Pharma Research Private Limited (Fellow subsidiary - NPRPL) with Neuland
Slide 23: Current Group Structure
Current Group Structure Neuland Health Sciences Pvt. Ltd.(NHSPL) (Peptides Research and Marketing) Promoter Group holding: 67.11% Others holding: 32.89% Neuland Laboratories Ltd.(NLL) Neuland Pharma Research Pvt. Ltd.(NPRPL) NHSPL: 51.67% (Research and Contract Manufacturing Services) Promoters/Prom
Slide 24: For further information contact: IR Desk
For further information contact: IR Desk Diwakar Pingle Neuland Labs Christensen IR +91 40 3021 1600 +91 22 4215 0210 [email protected] [email protected]
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