Solara Active Pharma Sciences Ltd. · NSE:SOLARA
Solara Active Pharma Sciences — Q4 FY18 Earnings Presentation
28 slides from Solara Active Pharma Sciences's earnings presentation, Jun 18, 2018
Slide 1: Pure play APIs
Pure play APIs. SOLARA ACTIVE PHARMA SCIENCES | JUNE 18 Investor Presentation and Q4 FY18 Performance review 1
Slide 2: Young but enterprising
YOUNG BUT ENTERPRISING. SOLARA IS YOUNG BUT DIFFERENTIATED TO THE CORE WITH ITS BUSINESS MODEL
Slide 3: Evolution on an experienced foundation
Evolution on an experienced foundation Demonstrated operational excellence over 2 decades • Demerged the select API business of Strides Shasun to • Demerged Human API business from SeQuent to operate as integrate with human API business of SeQuent Pure Play animal healthcare company • Expansion acro
Slide 4: Building on strong core values
Building on strong core values Doing what is ‘RITE’ for the customers Respect Transparency We treat each other and our partners with Through timely communications, it is our endeavor to respect. We value and respect each others keep our stakeholders, suppliers and customers time. We will always resp
Slide 5: Pure-play APIs with focused business orientation
Pure-play APIs with focused business orientation API only business model with large scale infrastructure, wide products and established customer relationships Capabilities Research Complex chemistry capabilities including Pipeline of 20+ products under handling of catalytic hydrogenation, hydride di
Slide 6: Changing API landscape
CHANGING API LANDSCAPE. THE API INDUSTRY GLOBALLY IS IN THE TRANSITION AND SOLARA GETS THE ADVANTAGE
Slide 7: The Growing API Opportunity
The Growing API Opportunity The API market is growing over 6% with most of the growth happening in the outsourced space Generics Market 43% of the total outsourced APIs, generics 70% Synthetic Chemical APIs make up about 43.5% (Mordor of the total market size, the chemical led Intelligence) APIs con
Slide 8: While the opportunity is growing, it needs a focused play
While the opportunity is growing, it needs a focused play Trends indicating favorable play for companies with focused API play USFDA’s increasing Supply chain IP conflicts and Increasing Pollution and oversight on APIs discontinuance competing interests Environmental Concerns • FDA’s increased overs
Slide 9: Solara is in a sweet spot amongst the peer group
Solara is in a sweet spot amongst the peer group Our core strategy is in sync with the trends , focus is now on steady execution Control over supply chain for APIs Commitment to highest levels of Compliance • Comfort to customers with a backward integrated setup that ensures supply F C • Integrated
Slide 10: Strategically poised
STRATEGICALLY POISED. SOLARA IS WELL DESIGNED TO SCALE A PROMISING AND EXPANDING BUSINESS
Slide 11: Robust manufacturing capabilities
Robust manufacturing capabilities 5 facilities with all major regulated market approvals Core focus • Mirrored facilities for developing products • Deploy systems that are highly automated and stringent, specifically in the labor intensive areas. • Focus on technology and production processes that r
Slide 12: Wide product offerings and pipeline
Wide product offerings and pipeline Rich basket of niche high value products for the global markets 50+ 20+ 130+ APIs APIs under development DMFs filed Predominantly in Anthelmintic, across Anthelmintic, Anti- with regulators across US, UK, Anti-malarias, Anti-infective, malarias, Beta blockers, Jap
Slide 13: Foothold in key markets
Foothold in key markets Establishing relationship with customers ensuring business enhancement 30% 32% EU 3% US 2% MENA Japan 9% 17% WHO SE Asia 2% LatAm 13
Slide 14: Strong Compliance and Quality Framework
Strong Compliance and Quality Framework Consistently deliver high quality products that can be relied upon by both our customers and regulators Competitive Competitive compliance demonstrated through various successful customer and regulatory audits Multilayered Appropriate cGMP for all phases of In
Slide 15: Experienced Leadership and execution team
Experienced Leadership and execution team Jitesh Devendra (Jitesh) CEO Jitesh has more than 20 years’ experience and has led the North America API business as well as managed the Formulations P&L business of erstwhile Shasun Pharmaceuticals Limited, which got merged with Strides Shasun Limited. Jite
Slide 16: Experienced Leadership and execution team
Experienced Leadership and execution team Dr. Sathyanarayan (Sathya) Head – Employee Relations and CSR Dr. Sathyanarayan has more than three decades of experience in HR. He has served in International Airports Authority of India – Calcutta Airport, Various units of HMT and BEML in various capacities
Slide 17: Independent board with strategic oversight
Independent board with strategic oversight Deepak Vaidya Nirmal Bhogilal Non-Exec. Director & proposed Chairman Independent Director Fellow member of the ICA in England and Chairman of the Batliboi Group. He was Wales. He has previously worked as the Past President and Committee Member of Country He
Slide 18: Growth strategy
GROWTH STRATEGY. INTEGRATE, EXPAND AND SEAMLESSLY EXECUTE
Slide 19: Enablers for the growth strategy
Enablers for the growth strategy Focus on differentiated strategy led by technology, compliance, and internationally relevant infrastructure Sweat Assets Accelerate R&D Choosing the right products and finding Augmenting the existing R&D capabilities the right balance between maintenance, modernizati
Slide 20: Accelerate R&D engine
Accelerate R&D engine A strong R&D base to propel growth Augmenting the existing R&D capabilities at Chennai with a state of the art facility at Jigani, Bangalore Propelling the growth with the product development targeting a $46m opportunity $16m $7m $7m $23m $1m Prime focus to develop products wit
Slide 21: Expand Capabilities
Expand Capabilities Step up investments to setup flagship facility and drive innovation and compliance to the next level Environment Chemistry Compliance Capacity Environment and health as Focus on the designing of Significant emphasis to Building a highly automated non-negotiable values that produc
Slide 22: Q4 FY18 Performance
Q4 FY18 PERFORMANCE. AN EVENTFUL YEAR FOR THE STRATEGIC GOALS
Slide 23: Key Highlights for Q4FY18 and FY18
Key Highlights for Q4FY18 and FY18 “ Q4 Financial Performance FY18 Financial Performance Operational Developments • Net Revenues at ₹3,043mn, • Net Revenues at ₹11,214mn , • New R&D centre set up in registering a growth of 17.7% registering a growth of 18.5% Bangalore completed and Quarter on Quarte
Slide 24: Q4FY18 Performance
Q4FY18 Performance Q4FY18 Review QoQ Trend Particulars Q4 FY18 Q3 FY18 Change Revenues Operating EBITDA EBITDA Revenue 3,042 2,584 17.7% 3003 3042 Operating EBITDA 457 240 90.9% 2587 2584 Operating EBITDA Margins 15.0% 9.3% R&D Cost (27) (53) -49.5% Exchange gain/(loss) (47) 47 -200.3% 382 401 458 4
Slide 25: FY18 Performance
FY18 Performance Q4FY18 Review Key Balance Items Particulars FY18 Proforma FY17 Proforma Change Balance sheet items Value in ₹m Shareholders' funds 7,640 Revenue 11,215 9,463 18.5% Less: Goodwill -3,634 Operating EBITDA 1,537 1,186 29.6% Networth 4,006 Operating EBITDA Margins 13.7% 12.5% Term Loan
Slide 26: Consolidated FY18 Income Statement
Consolidated FY18 Income Statement Q4 FY18 Q3 FY18 FY18 FY17 PARTICULARS Audited Unaudited Proforma Proforma Revenue 3,042 2,584 11,214 9,463 Material Consumption (1,550) (1,384) (5,794) (5,029) Gross Margin 1,492 1,200 5,420 4,434 % 49.1% 46.4% 48.3% 46.9% Operating Expenses (1,035) (960) (3,883) (
Slide 27: Solara - 5 years perspective
Solara- 5 years perspective Business Continuity Portfolio of new products and new customers to augment current base and enable steady growth Worldwide Presence Strive to be amongst the Top Established strongholds in key regulated markets and growth territories 10 pure play Global Active Pharmaceutic
Slide 28: Thank you
THANK YOU. www.solara.co.in 28
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