Cohance Lifesciences Ltd · NSE:COHANCE
Cohance Lifesciences — Suven Pharmaceuticals — FY2024 Earnings Presentation
35 slides from Cohance Lifesciences's earnings presentation, May 30, 2024
Slide 1: Suven Pharmaceuticals Ltd. Investor Presentation – FY24
Suven Pharmaceuticals Ltd. …Towards a Brighter Tomorrow Investor Presentation – FY24
Slide 2: Table of Contents
Table of Contents Executive Summary 04 FY24 and Q4 Operating and Financial Performance 05 Combined Business: Proforma Metrics 11 Combined Business: Segment-wise Performance 14 Strategic Blueprint Key Pillars 16 Combined Business: Key segment wise strategy 17 Merger of Suven Pharmaceuticals with Coha
Slide 3: Safe Harbour
Except for historical information, all of the statements, expectations and assumptions, including expectations and assumptions, contained in this presentation may be forward-looking statements that involve a number of risks and uncertainties. Although Suven attempts to be accurate in making these Sa
Slide 4: Executive Summary
Executive Summary We have set-up the organization for both mid-term and long-term growth in the last 8 months Augmenting teams across Commercial, R&D, Operations and M&A High quality customer engagement, “China + 1” strategy and positive pipeline movements have driven a 2x+ increase in RFQs infl
Slide 5: FY24 and Q4 Operating and Financial Performance
FY24 and Q4 Operating and Financial Performance
Slide 6: Financial overview
Financial overview FY24 Performance: FY24 Consolidated Financial Highlights FY24 was a perfect storm with a) Global slowdown b) Ag Chem destocking c) COVID flush out d) commodity pricing. We think most of the headwinds are behind us fully, other than Ag Chem destocking. (21.6%) 16.2% 9.4% Revenue
Slide 7: FY24 Consolidated Financial results
FY 24 Consolidated Financial results INR Million Particulars FY 23 FY 24 YoY change • Revenue growth, excluding spec chem global destocking and covid supplies from base stood at Revenue from Operations 13,403 10,514 -21.6% 16.2%. Pharma CDMO excluding Covid supplies in Material costs / COGS (4,225)
Slide 8: Q4 FY24 Consolidated Financial results
Q4 FY24 Consolidated Financial results INR Million Particulars Q4 FY23 Q4 FY24 YoY change Revenue from Operations 3,694 2,529 -32% Material costs / COGS 1, 164 837 -28% Material Margin 2,530 1,692 -33% • Revenue growth was impacted by shipment Material Margin % 68.5% 66.9% delays caused by client-sp
Slide 9: FY24 Business performance overview
FY24 Business performance overview Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 13,403 43.8% 29.9% 30.4% 10,514 41.4% 5,876 4,350 4,013 3,194 FY23 FY24 FY23 FY24 FY23 FY24 Grew 16.2% ex-covid base and ex-Spec
Slide 10: Q4 FY24 Business performance overview
Q4 FY24 Business performance overview Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 3,694 51.7% 33.6% 2,529 34.2% 24.7% 1,911 866 1,240 624 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 Pharma CDMO (INR M
Slide 11: Combined Business: Proforma Metrics
Combined Business: Proforma Metrics
Slide 12: Proforma Merged Entity FY24 Performance
Proforma Merged Entity FY24 Performance FY24 Merged Company INR Mn Revenue 10,514 13,408 23,922 Adjusted EBITDA 4,350 4,183 8,534 Adjusted EBITDA margin % 41.4% 31.2% 35.7% Adjusted PAT 3,194 2,545 5,738 Adjusted PAT margin % 30.4% 19.0% 24.0% RoCE 34.8% 27.4% 30.8% RoE 18.7% 24.9% 21.0% (Net Debt)
Slide 13: Proforma Merged Entity FY24 - Combined business mix
Proforma Merged Entity FY24 - Combined business mix Merged Company Formulations & Others 17% Sales Mix (FY24) CDMO API++ API++ CDMO 33% 45% CDMO 67% 55% 83% Manufacturing Facilities (Regulatory 5 (2) 7 (5) 12 (7) approved) R&D Centers 1 4 5 Capacity ~1,400 kL ~1,250 kL ~2,650 kL Source: Cohance Life
Slide 14: Combined Business: Segment-wise Performance
Combined Business: Segment-wise Performance
Slide 15: FY24 Business performance overview
FY24 Business performance overview Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 26,779 37.7% 25.3% 23,922 35.7% 24.0% 10,089 8,534 6,775 5,738 FY23 FY24 FY23 FY24 FY23 FY24 FY24 Pharma CRAMS +Cohance ADC & Su
Slide 16: Strategic Blueprint Key Pillars
Strategic Blueprint Key Pillars Aspiration Be Most admired CDMO, known for delivery, quality and innovation Pharma Spec Chem ADC API++ CDMO CDMO: Rising RFQs and Partnering with Shaping strong Unique portfolio lateral pipeline – large innovators Business focused on small both existing and de
Slide 17: Combined Business: Key segment wise strategy
Combined Business: Key segment wise strategy
Slide 18: Suven: Pharma CDMO a strong growth engine
Suven: Pharma CDMO a strong growth engine Suven’s Phase III pipeline What makes us feel confident about the future growth Phase III molecules Phase III intermediate 13 Conducive Industry tailwinds: China Plus one and EU plus one o Customer are very open to engage and looking for strategic partners
Slide 19: Cohance: ADC Platform
Cohance: ADC Platform Two large innovators onboarded – on ADC platform Growing numbers of ADC candidates entering clinical trials Cohance has onboarded two large new innovator pharma customers for its proprietary ADC payload platform. ADC entering CTs in each year* ADC pipeline – progressing well
Slide 20: Suven: Spec Chem/ Agri Chem recovery from 2H
Suven: Spec Chem/ Agri Chem recovery from 2H Agri Chem / Spec Chem– headwinds continue, expect to seeing recovery from H2’FY25 Industry continues to work through residual inventory imbalances in key regions New product registration delayed given the industry macro Focus on using downturn as an o
Slide 21: Cohance: API ++ downcycle behind us
Cohance: API ++ downcycle behind us Downcycle in API++ is behind us - expect to get back to double digit growth $86+ Bn Total Addressable Market Sustained growth What will accelerate the base growth: Portfolio is unique and can drive sustained growth Merchant API market revenues*, USD o Business m
Slide 22: Merger of Suven Pharmaceuticals with Cohance Lifesciences
Merger of Suven Pharmaceuticals with Cohance Lifesciences
Slide 23: Merger – Approval update
Merger – Approval update Merger Approvals status update We have received NSE and BSE approvals for the proposed merger Presently awaiting approval from SEBI Post SEBI approval, the Company will approach NCLT Pursuant to this NCLT to call for the shareholders voting Other regulatory approva
Slide 24: Financial Performance FY24
_ SUVEN cohance PHARMA lifesciences
Slide 25: Suven P&L – EBITDA margins above 41%
Suven P&L – EBITDA margins above 41% INR million CAGR Consolidated P&L Snapshot FY20 FY21 FY22 FY23 FY24 FY20-FY24 YoY Revenue 8,338 10,097 13,202 13,403 10,514 6.0% -21.6% COGS (2,292) (3,019) (3,991) (4,225) (3,016) FY24 was a perfect storm, and we Material Margin 6,046 7,078 9,211 9,178 7,497 5
Slide 26: Suven Balance Sheet – Healthy cash rich B/S
Suven Balance Sheet – Healthy cash rich B/S INR million Consolidated Balance Sheet Snapshot FY20 FY21 FY22 FY23 FY24 Property, plant and equipment (PPE) 3,531 4,371 5,306 5,842 5,672 Right of use asset (RoU) 9 17 14 169 406 Capital work-in-progress 1,016 961 300 1,651 1,790 Intangible Assets 29 26 2
Slide 27: Suven – Key Ratios
Suven – Key Ratios Key Ratios FY20 FY21 FY22 FY23 FY24 Basis Net Working Capital (as days of sales) 97 80 114 96 112 Core NWC / Revenue * 365 PPE (as % of sales) 42.3% 43.3% 40.2% 43.6% 54.0% Closing PPE / Revenue Capex spend during the year (INR M) 1,029 1,108 752 2,857 518 Capex spend (as % of sal
Slide 28: Cohance Proforma P&L – Snapshot
Cohance Proforma P&L – Snapshot INR million CAGR Proforma P&L Snapshot FY19 FY20 FY21 FY22 FY23 FY24 FY19- YoY FY24 Cohance platform build-out started in Revenue 7,272 8,631 10,043 12,802 13,375 13,408 13.0% 0.2% Oct ‘20; Organic revenue CAGR at 13% (L2L COGS (2,900) (3,705) (4,004) (5,300) (5,058
Slide 29: Cohance Proforma Balance Sheet – Snapshot
Cohance Proforma Balance Sheet – Snapshot INR million Proforma Balance Sheet Snapshot 1 FY19 FY20 FY21 FY22 FY23 FY24 Property, plant and equipment (PPE) 3,699 3,824 4,128 4,090 4,217 4,601 Right of use asset (RoU) 2 0 13 89 179 202 356 Capital work-in-progress 45 99 155 458 1,167 2,292 Intangible A
Slide 30: Cohance Proforma – Key Ratios
Cohance Proforma – Key Ratios Increased working capital due to stock buildup and increase in other current assets on account of increase input GST in FY24 Key Ratios FY19 FY20 FY21 FY22 FY23 FY24 Basis Net Working Capital (as days of sales) 163 158 147 150 156 185 NWC / Revenue * 365 PPE (as % of sa
Slide 31: Proforma P&L Suven + Cohance Combined – Snapshot
Proforma P&L Suven + Cohance Combined – Snapshot INR million CAGR YoY Combined Proforma P&L Snapshot FY20 FY21 FY22 FY23 FY24 FY20-FY24 Revenue 16,969 20,140 26,004 26,779 23,922 9.0% -10.7% COGS (5,997) (7,024) (9,291) (9,283) (7,878) Proforma numbers of the Material Margin 10,972 13,117 16,714 1
Slide 32: Proforma BS Suven + Cohance Combined– Snapshot
Proforma BS Suven + Cohance Combined– Snapshot INR million Combined Balance Sheet Snapshot1 FY20 FY21 FY22 FY23 FY24 Property, plant and equipment (PPE) 7,354 8,499 9,396 10,059 10,273 Right of use asset (RoU) 2 22 105 193 372 762 Capital work-in-progress 1,114 1,116 758 2,818 4,082 Intangible Asset
Slide 33: Suven + Cohance Combined Ratios – Snapshot
Suven + Cohance Combined Ratios – Snapshot Key Ratios# FY20 FY21 FY22 FY23 FY24 Basis Net Working Capital (as days of sales) 128 113 132 125 153 NWC / Revenue * 365 days PPE (as % of sales) 43.3% 42.2% 36.1% 37.6% 42.9% PPE / Revenue Capex spend during the year (INR M) 1,527 1,918 1,663 4,203 2,607
Slide 34: Contact Information
Contact Information Cyndrella Carvalho, Head - Investor Relations, Suven Pharmaceutical Ltd Tel: +91 9823615656 Email: cyndrella.carvalho@suvenpharm.com Gavin Desa / Rishab Barar CDR - India Tel: +91 98206 37649/ +91 77770 35061 Email: gavin@cdr-india.com / rishab@cdr-india.com Pg. 34
Slide 35: Thank You
» SUVEN PHARMA