Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q4 FY16 Earnings Presentation
27 slides from Neuland Laboratories's earnings presentation, 2016
Slide 1: Investor Presentation | Q4FY16
Investor Presentation | Q4FY16 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS © 2016 – Neuland . All Rights Reserved | www.neulandlabs.com
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: Investor Presentation | Neuland | www.neulandlabs.com
Investor Presentation | Neuland | www.neulandlabs.com 3
Slide 4: Company Overview
Company Overview 32+ 75+ 85 80+ 400+ 1000+ Years of Products Mn USD Countries of Regulatory Experienced excellence developed Revenue for business Filings professionals FY 16 including scientists • • • • • • Investor Presentation | Neuland | www.neulandlabs.com 4
Slide 5: Our Growth Story
Our Growth Story 2015 2013 Collaboration 10th USFDA with API Inspection Corporation, a 2009 company of Mitsubishi 1st NCE Chemicals approval 2004 PMDA US Office Japan 1997 Incorporated approval 1994 2007 First FDA 2010 Audit Japanese 1986 Neuland Subsidiary First Peptide initial Incorporated Collabo
Slide 6: Board and Key Management
Board and Key Management M.Sc. from Andhra University, Post Graduate Diploma in Technology – IIT Kharagpur Dr. D. R. Rao Ph.D. in Organic Chemistry -University of Notre Dame, U.S.A. Chairman and Managing Has held senior positions in R & D, production and quality assurance at Glaxo India Director & P
Slide 7: Board and Key Management
Board and Key Management Dr. Christopher M. Ph.D. in Organic Chemistry - Purdue University, U.S.A. Cimarusti Post Doctoral Research - Columbia University, U.S.A. Non-Executive Director Former Sr. Vice President, Pharmaceutical Development - Bristol-Myers Squibb Professor of International Management,
Slide 8: Business Saliency
Business Saliency Neuland Generic Drug Custom Manufacturing GDS Substances(1) CMS Solutions Contract Manufacturing business where work executed is exclusive for the Prime Niche customers on products at various phases of their life-cycle(2) Mature APIs, typically with APIs with complex high competiti
Slide 9: Generic Drug Substance(GDS)
Generic Drug Substance(GDS) • Preferred and reliable source of Active Pharmaceutical Ingredients (APIs) manufacturing, marketing and supply for several leading pharmaceutical companies worldwide • Features: • 2 US FDA and EU GMP compliant manufacturing facilities • Collective capacity: 480KL • 75 AP
Slide 10: Custom Manufacturing Solutions(CMS)
Custom Manufacturing Solutions(CMS) Our CMS business derives from its proven expertise in manufacturing at varied scales, a deep understanding of complex chemistry and manufacturing facilities compliant with the guidelines of the leading regulatory authorities and EHS. Services • Manufacturing API t
Slide 11: Manufacturing Base
Manufacturing Base Bonthapally, Hyderabad Pashamylaram, Hyderabad Establishment • Started operations in 1986 • Started operations in 1994 Size and capacity • Built up area of 45,325 sq mtr. • Built up area of 36,800 sq mtr. • Plant capacity : 175.47 KL • Plant capacity : 300.10 KL Key Products • Ram
Slide 12: Business Mix
Business Mix % Revenue by Verticals % Revenue by Territory* ROW 11% Japan 11% 13% 17% 4% 18% Europe 22% 53% 27% 71% 65% North 57% America 31% FY-14 FY-15 FY-16 India 1% CMS NICHE PRIME *-Rounded off, based on end market reach Investor Presentation | Neuland | www.neulandlabs.com 12
Slide 13: R&D Infrastructure
R&D Infrastructure R&D Facility, Hyderabad* Infrastructure: • 11 Development Labs • 60 Fume hoods • Analytical Lab • Kilo Lab dedicated for Scale up • Dedicated Labs for Peptides Establishment • Started operations in 2008 • Separate facility for D2 analogues Size and • Built up area of 3382.5 sq cap
Slide 14: Regulatory Filings and IPR
Regulatory Filings and IPR 48 25 ~400 19 5 11 144 DMFs with Filings with EUDMF filings CEPs Received Japanese DMF filings with ROW filings USFDA Health Canada across for different filed KFDA Korea including Germany, products Turkey, France, Mexico, Brazil Poland, Italy etc etc • ~650 filings world o
Slide 15: Industry structure and key drivers
Industry structure and key drivers API Industry’s Share in Global Contract Key Drivers Manufacturing Industry • Increased demand for biopharmaceutical manufacturing services • Complex and potent drug development will Finished Dosage Formulations, lead to higher demand of High Potency 33% Forecast Ac
Slide 16: Investor Presentation | Neuland | www.neulandlabs.com
Investor Presentation | Neuland | www.neulandlabs.com 16
Slide 17: Financials
Financials Financial Performance 550 510 100 Current Ratio(x) 450 464 466 469 1.2 1.1 0.9 0.9 0.8 350 50 150 2012 2013 2014 2015 2016 -50 0 Debt to Equity(x) FY12 FY13 FY14 FY15 FY16 Figures in INR Cr Sales 450 464 466 469 510 2.5 EBITDA 48 61 73 67 82 1.9 1.5 Net Profit 2 14 27 16 27 1.2 0.9 Revenu
Slide 18: Key Operating Metric
Key Operating Metric CMS Business Depth Number of molecules (APIs and Intermediates) contributing to the revenue in the Quarter. 11 9 7 5 6 3 1 3 2 3 4 1 2 1 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 FY16 Clinical Commercial *- Quantities taken for validation and launch are considered as Commercial Investor P
Slide 19: Key Operating Metric
Key Operating Metric Revenue Split(FY 16) 4% 22% 16% 24% 30% 26% 25% 25% 66% 57% 53% 51% Q1 Q2 Q3 Q4 CMS NICHE PRIME Investor Presentation | Neuland | www.neulandlabs.com 19
Slide 20: Financial Highlights – FY16
Financial Highlights –FY16 • Total Operating income was Rs 5,099.7 mn for FY16 as compared to Rs 4,691.5 mn in the FY15, an FY16 Performance increase of 9% • EBITDA stood at Rs 814.9 mn as compared to Rs 671.5 mn during FY15, an increase of 21% • EBITDA Margin at 16.0% for FY16 as against 14.3% in F
Slide 21: Operational Highlights – FY16
Operational Highlights- FY16 • The increase in the revenues for Q4FY16 reflects our increased contribution from CMS business Q4 Highlights which grew 8% over the previous quarter. The CMS business contributed 24% of the overall revenue. • Scaled up 2 molecules in the CMS space. • The R&D facility ha
Slide 22: Investor Presentation | Neuland | www.neulandlabs.com
Investor Presentation | Neuland | www.neulandlabs.com 22
Slide 23: Business Strategy
Business Strategy Exports higher volumes to Add new therapies Japan and other regulated and products markets having high margins Future Strategy Add more capacity and File DMFs, Patents and consolidate existing with grow intangibly. a profitable product basket Create an organization that results in
Slide 24: Focus on new products
Focus on new products 25% 17% 2018 50% 2016 57% 27% 25% Faster Growth Higher margins Increased with high volume with complex Penetration in APIs molecules APIs the CMS space Bring sustainability for future Investor Presentation | Neuland | www.neulandlabs.com 24
Slide 25: Growth in CMS
Growth in CMS Develop Scale up Manufacture • 11 development labs • 2 kilo labs • 2 manufacturing sites • 60 fume hoods • cGMP pilot plant with two • 11 diverse production blocks • mg to gm scale production areas • Kg to ton scale • Analytical R&D • 0.5-50 kg batch size Scale the revenue growth in CM
Slide 26: Investment Rationale
Investment Rationale Horizontal Growth Continued expansion as preferred API source world wide Enhance manufacturing capacity to sustain high growth in APIs and CMS Increased number of new products with focus on market share on existing products through process improvement and capacity utilizat
Slide 27: For further information contact
For further information contact: Arpita Poola Ankit Gupta Neuland Labs Christensen IR +91 40 3021 1600 +91 22 4215 0210 [email protected] [email protected]