Cohance Lifesciences Ltd · NSE:COHANCE
Cohance Lifesciences — Suven Pharmaceuticals — Q1 FY25 Earnings Presentation
56 slides from Cohance Lifesciences's earnings presentation, Aug 9, 2024
Slide 1: Outcome of the board meeting
CSD/BSE&NSE/BM/2024-25 August 09, 2024 To To The Manager The Manager Department of Corporate Services Listing Department BSE Limited National Stock Exchange of India Limited 25th Floor, P. J. Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai - 400 001 Bandra (E), Mumbai – 400 051 Scr
Slide 2: Outcome of the board meeting (continued)
Details with respect to the change in KMP as required under Regulation 30 of Listing Regulations read with SEBI Circular No. SEBI/HO/CFD/CFD-PoDI/P/CIR/2023/123 dated July 13, 2023 are provided in the Annexure – I & II to this letter. Further, we are enclosing herewith the following documents: 1. Un
Slide 3: Annexure I - Change in Key Managerial Personnel
Annexure - I Required disclosures/details in respect of Change in the Key Managerial Personnel pursuant to Regulation 30 of the Listing Regulations read with SEBI Circular SEBI/HO/CFD/CFD- PoDI/P/CIR/2023/123 dated July 13, 2023 Sr No Particulars Details 1 Reason For Change Appointment of Mr. Kundan
Slide 4: Annexure II - Retirement of Company Secretary
Annexure - II Sr No Particulars Details 1 Reason For Change Retirement of Mr Hanumantha Rao Kokkonda as Company Secretary and Compliance Officer (Key Managerial Personnel) of the Company with effective from 10th August 2024 2 Date of appointment Not Applicable and Term of appointment 3 Brief profile
Slide 5: Standalone Financial Results
6 S!-!,~ ~AN SUVEN PHARMACEUTICALS LTD Regd. Off: 215 Atrium, CWing, 8th Floor, 819·821, Andheri Kurla Road, Chakala, Andheri East, Chakolo Midc, Mumbai, Maharashtra, Indio, 400093 ·~ • 01' ,.., ,11n1Trn CT ,.,nAI nu~ <> rn.,cno lnATrn r••• . . . , , • nr,o" TC r n n ~'IADTrD r>.onrn ,nth •··- - " C
Slide 6: Consolidated Financial Results
PART-II CONSOLIDATED Far the Quarter Ended For the Year Ended SI. No. PARTICULARS 30-06-2024 31-03-2024 30-06-2023 31 -03 - 2024 UN-AUDITED UN-AUDITED UN-AUDITED AUDITED 1 Income Revenue from operations 230.69 252.93 347.55 1,051.35 Other Income 18.16 17.05 10.67 61.91 Total Income 248 .85 269.98 35
Slide 7: Notes to the financial results
Notes 1) The above financial results of the Company have been reviewed by the Audit Committee and approved by the Board of Directors a their respective meetings held on 91• August, 2024. The above results have been subjected to limited review by the statutory auditors o the company. 2) The above fin
Slide 8: Auditor's review report - standalone
KARVY & CO CHARTERED ACCOUNTANTS INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM UNAUDITED STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF SUVEN PHARMACEUTICALS LIMITED 1. We have reviewed the accompanying statement of unaudited standalone financial results of SUVEN PHARMACEUTICAL
Slide 9: Auditor's review report - standalone (continued)
5. We did not review the interim financial information of the USA branch included in the unaudited standalone financial results whose interim financial information reflect total revenues of Rs. 1.72 Lakhs and total net loss after tax of Rs. 321.18 Lakhs for the Quarter ended 30 th June, 2024, as con
Slide 10: Auditor's review report - consolidated
KARVY & CO CHARTERED ACCOUNTANTS INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEWOF INTERIM UNAUDITED CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF SUVEN PHARMACEUTICALS LIMITED 1. We have reviewed the accompanying statement of Unaudited Consolidated Financial Results of SUVEN PHARMACEUTI
Slide 11: Auditor's review report - consolidated (continued)
5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 6 below nothing has come to our attention that causes us to believe that the accompanying Statement prepared in
Slide 12: Suven Pharmaceuticals announces Q1 FY25 financial results
Suven Pharmaceuticals announces Q1 FY25 financial results Strategic Initiatives on Track; Improvement in Gross Margins, Adj. EBITDA margins at 37.9% Continued high RFQ inflow Hyderabad, August 09, 2024 Suven Pharmaceuticals Ltd. (BSE: 530239, NSE: SUVENPHAR), announces its financial results for the
Slide 13: Business and Operational Highlights
Gross margins at 72.4% improved by 157bps driven by business mix Adjusted EBITDA margins were 37.9%, adjusted for a onetime charge of Rs 5.57 crore largely comprising ESOP charges Generated free cash flow of Rs 33.1 crore. Business and Operational Highlights: Pharma CDMO Customer sentiment r
Slide 14: Contact and disclaimer
USA Local Access Number : 1 866 746 2133 -ENDS- For more information, please visit www. suvenpharm.com OR contact: Cyndrella Carvalho, Head - Investor Relations, Gavin Desa / Rishab Barar Suven Pharmaceutical Ltd CDR India Tel: 040 2354 3311 Tel: +91 98206 37649/ +91 77770 35061 Email: cyndrella.car
Slide 15: Suven Pharmaceuticals Ltd. - Q1 FY25
Suven Pharmaceuticals Ltd. …Towards a Brighter Tomorrow Investor Presentation – Q1 FY25
Slide 16: 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 Safe attempts to be accurate in making th
Slide 17: Table of Contents
Table of Contents Executive Summary 04 Q1FY25 Operating and Financial Performance 05 Combined Business: Proforma Metrics Q1FY25 09 Combined Business: Key segment wise strategy 12 Strategic Blueprint 19 Sapala Acquisition 21 Merger of Suven Pharmaceuticals with Cohance 23 Lifesciences - update Financ
Slide 18: Executive Summary
Executive Summary Industry : Positive Customer sentiments driven by supply chain de-risk and industry macro tailwinds o Customer sentiment continues to be positive towards India driven by supply chain de-risking and Industry macro. This continues to drive our confidence in the medium to long term gr
Slide 19: Q1FY25 Operating and Financial Performance
Q1FY25 Operating and Financial Performance
Slide 20: Financial overview
Financial overview Q1 FY25 Performance: Q1 FY25 Consolidated Financial Highlights Q1 revenue softness YoY not exactly comparable given the nature of our business, as the shipment schedule is skewed towards 2H, we expect growth from 2H (34%) (27%) (34%) Revenue from operations (YOY) Pharma CDMO (Yo
Slide 21: Q1FY25 Consolidated Financial results
Q1FY25 Consolidated Financial results INR Million Particulars Q1FY25 Q1FY24 Q4 FY24 YoY QoQ • We expect growth from 2HFY25 as we have purchase Revenue from Operations 2,307 3,476 2,529 -33.6% -8.8% orders in sight set for execution in the second half. Material costs / COGS 636 1,013 837 -37.2% -24.0
Slide 22: Q1FY25 Business performance overview
Q1FY25 Business performance overview Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 3,476 34.7% 48.6% 37.9% 28.1% 2,307 1,688 874 1,206 649 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Pharma CDMO (INR Milli
Slide 23: Combined Business: Proforma Metrics Q1FY25
Combined Business: Proforma Metrics Q1FY25
Slide 24: Proforma Merged Entity
Proforma Merged Entity Q1 FY25 Merged Company INR Mn Revenue 2,307 2,520 4,827 Adjusted EBITDA 874 491 1,365 Adjusted EBITDA margin % 37.9% 19.5% 28.3% Adjusted PAT 649 189 838 Adjusted PAT margin % 28.1% 7.5% 17.4% RoCE 24.2% 36.4% 30.5% RoE 15.8% 29.6% 21.1% (Net Debt) / Net Cash to Adj. EBITDAx 2
Slide 25: Proforma Merged Entity - Combined business mix
Proforma Merged Entity - Combined business mix Merged Company Formulations & Others 22% Sales Mix CDMO (Q1FY25) 22% API++ CDMO CDMO API++ 49% 51% 78% 78% Manufacturing Facilities 5 (2) 7 (5) 12 (7) (Regulatory approved) R&D Centers 2 4 6 Capacity ~1,400 kL ~1,400 kL ~2,800 kL Source: Cohance LifeSci
Slide 26: Combined Business: Key segment wise strategy
Combined Business: Key segment wise strategy
Slide 27: Suven: Pharma CDMO a strong growth engine
Suven: Pharma CDMO a strong growth engine Suven’s Phase III pipeline Good pipeline with improving Phase III Phase III molecules Phase III intermediate o Overall active pipeline of 100+ projects across Phase I – III 13 o We have 10 commercial Pharma molecules Phase III pipeline 6 o Our Phase thre
Slide 28: Favorable Industry Macros leading to growth in Small Molecule Pipeline
Favorable Industry Macros leading to growth in Small Molecule Pipeline Small Molecule Pipeline continues to grow on the back of Oncology; Biologics as a % of Pipeline has been stable around 41-45% • The current size of the clinical pipeline has grown to 22,937 projects. • Small Molecules is 52% of t
Slide 29: Small molecules: Increasing proportion of US FDA approvals
Small molecues: Increasing proportion of US FDA approvals US FDA Approvals lean towards small molecules: ~70% of FDA Approvals 2023 and H1-2024 are small molecules Record Number of Approvals in 2023: 55 novel drugs were approved in 2023. This was the second-highest number of approvals in the last 10
Slide 30: Cohance CDMO - ADC payload portfolio
Cohance CDMO ADC payload portfolio – progressing well Two commercial product continue to grow strong with the therapy expansion and Growing numbers of ADC candidates entering clinical trials market registrations. ADC entering CTs in each year* New order from recently onboarded customers are prog
Slide 31: Cohance: API++ on growth Path
Cohance: API ++ on growth Path Downcycle in API++ is behind us – reported 22% YoY growth in Q1 $86+ Bn Total Addressable Market with healthy order book Sustained growth What will accelerate the base growth: Merchant API market revenues*, USD Portfolio is unique and can drive sustained growth Pos
Slide 32: Suven: Spec Chem/ Agri Chem recovery from H2
Suven: Spec Chem/ Agri Chem recovery from H2 Agri Chem / Spec Chem– headwinds continue, expect recovery from H2’FY25 The demand recovery is slower than expected, re-iterate growth expectations of demand recovery from FY25 based on ongoing efforts and industry demand cycle Industry continues to w
Slide 33: Strategic Blueprint
Strategic Blueprint
Slide 34: 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 large Shaping strong Unique portfolio lateral pipeline – both innovators Business development focused on small and
Slide 35: Sapala Acquisition
Sapala Acquisition
Slide 36: Sapala - Investment thesis
Sapala – Investment thesis Amongst the few CDMOs globally, supplying complex building blocks for Oligonucleotides Establishes Suven as a deep-domain led integrated player with differentiated tech platforms (ADC, Oligo, amongst others) We completed the first phase of Sapala Organics’ Amongst the few
Slide 37: Merger of Suven Pharmaceuticals with Cohance Lifesciences
Merger of Suven Pharmaceuticals with Cohance Lifesciences
Slide 38: Merger - Approval update
Merger – Approval update Received the approvals from the Stock Exchanges and SEBI. Recently, we have submitted our petition to the Hon’ble NCLT, Mumbai bench, and are awaiting the hearing date. Other regulatory approvals, if any to follow Expect the merger proceedings could take another 7- 10
Slide 39: Financial Performance Q1FY25
Financial Performance Q1FY25
Slide 40: Suven P&L - Adjusted EBITDA margins at 38%
Suven P&L – Adjusted EBITDA margins at 38% INR million CAGR YoY Consolidated P&L Snapshot FY20 FY21 FY22 FY23 FY24 Q1FY24 Q1 FY25 FY20-FY24 Q1FY25 Revenue 8,338 10,097 13,202 13,403 10,514 3,476 2,307 6.0% -33.6% Revenue softness in Q1 on YoY basis, given the lumpy nature of COGS (2,292) (3,019) (3,
Slide 41: 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 Q1 FY25 Property, plant and equipment (PPE) 3,531 4,371 5,306 5,842 5,672 5,567 Right of use asset (RoU) 9 17 14 169 406 437 Capital work-in-progress 1,016 961 300 1,651 1,790 2,068 I
Slide 42: Suven - Key Ratios
Suven – Key Ratios Key Ratios FY20 FY21 FY22 FY23 FY24 Q1 FY25 Basis Net Working Capital (as days of sales) 97 80 114 96 112 127 Core NWC / Revenue * 365 PPE (as % of sales) 42.3% 43.3% 40.2% 43.6% 54.0% 59.6% Closing PPE / Revenue Capex spend during the year (INR M) 1,029 1,108 752 2,857 518 274 Ca
Slide 43: Cohance Proforma P&L - Snapshot
Cohance Proforma P&L – Snapshot INR million CAGR Proforma P&L Snapshot FY19 FY20 FY21 FY22 FY23 FY24 Q1FY24 Q1FY25 YoY FY19-FY24 Q1FY25 saw revenue growth of Revenue 7,272 8,631 10,043 12,802 13,375 13,408 2,278 2,520 13.0% 10.6% COGS (2,900) (3,705) (4,004) (5,300) (5,058) (4,862) (859) (940) 10.
Slide 44: Cohance Proforma Balance Sheet - Snapshot
Cohance Proforma Balance Sheet – Snapshot INR million Proforma Balance Sheet Snapshot 1 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 Property, plant and equipment (PPE) 3,699 3,824 4,128 4,090 4,217 4,601 5,388 Right of use asset (RoU) 2 0 13 89 179 202 356 368 Capital work-in-progress 45 99 155 458 1,167
Slide 45: Cohance Proforma - Key Ratios
Cohance Proforma – Key Ratios Key Ratios FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 Basis Net Working Capital (as days of sales) 163 158 147 150 156 185 160 NWC / Revenue * 365 PPE (as % of sales) 50.9% 44.3% 41.1% 31.9% 31.5% 34.3% 39.5% PPE / Revenue Capex spend during the year (INR M) 313 498 810 911
Slide 46: Proforma P&L Suven + Cohance Combined - Snapshot
Proforma P&L Suven + Cohance Combined – Snapshot INR million CAGR Q1FY25 Combined Proforma P&L Snapshot FY20 FY21 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY20-FY24 YoY Revenue 16,969 20,140 26,004 26,779 23,922 5,754 4,827 9.0% -16.1% Revenue declined by 16% YoY, COGS (5,997) (7,024) (9,291) (9,283) (7,878)
Slide 47: Proforma BS Suven + Cohance Combined - Snapshot
Proforma BS Suven + Cohance Combined– Snapshot INR million Combined Balance Sheet Snapshot1 FY20 FY21 FY22 FY23 FY24 Q1 FY25 Property, plant and equipment (PPE) 7,354 8,499 9,396 10,059 10,273 10,955 Right of use asset (RoU) 2 22 105 193 372 762 805 Capital work-in-progress 1,114 1,116 758 2,818 4,0
Slide 48: Suven + Cohance Combined Ratios - Snapshot
Suven + Cohance Combined Ratios – Snapshot Key Ratios# FY20 FY21 FY22 FY23 FY24 Q1 FY25 Basis Net Working Capital (as days of sales) 128 113 132 125 153 147 NWC / Revenue * 365 days 43.3% 42.2% 36.1% 37.6% 42.9% 47.6% PPE (as % of sales) 1,527 1,918 1,663 4,203 2,607 1,035 PPE / Revenue Capex spend
Slide 49: Combined Business: Proforma Metrics FY24
Combined Business: Proforma Metrics FY24
Slide 50: Proforma Merged Entity FY24
Proforma Merged Entity 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) / Net Cash to Adj
Slide 51: Proforma Merged Entity - Combined business mix
Proforma Merged Entity - Combined business mix Merged Company Formulations & Others 17% Sales Mix (FY24) CDMO API++ 33% API++ CDMO 45% CDMO 67% 55% 83% Manufacturing Facilities 5 (2) 7 (5) 12 (7) (Regulatory approved) R&D Centers 1 4 5 Capacity ~1,400 kL ~1,250 kL ~2,650 kL Source: Cohance LifeScien
Slide 52: Annexure
Annexure
Slide 53: Appendix - Adequate Capacity to serve current and future demand
Appendix - Adequate Capacity to serve current and future demand Vizag, Andhra Pradesh, India Pashamylaram, Telangana, India Suryapet, Telangana, India o 307 KL reactor volume API & Formulation Facility Intermediate Facility o 3KL to 12KL Reactors o 120 KL reaction volume o 300 CM reactors (93) o GL/
Slide 54: Cohance's Specialized manufacturing capabilities
COHANCE’S Specialized manufacturing capabilities API Unit-1, Andhra Pradesh, India API Unit-2, Andhra Pradesh, India API Unit-3, Gujrat, India FDF Unit-1, Telangana, India o USFDA (latest in 2019) o EDQM (latest in 2023) o USFDA (latest in 2023) o USFDA (latest in 2019) o EDQM (latest in 2023) o EDQ
Slide 55: 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. 41
Slide 56: Thank You
Thank You
Suven Pharmaceuticals — Q1 FY25 Earnings Presentation on 6ix