Syngene International Ltd. · NSE:SYNGENE
Syngene International — Q4 FY20 Earnings Presentation
32 slides from Syngene International's earnings presentation, May 13, 2020
Slide 1: Cover letter to stock exchanges
Syngene Ref: Syn/CS/SE/IP/2020-21/May/13 Syngene International Limited Biocon Park SEZ, Bommasandra IV Phase, Jigani Link Road, Bangalore 560 099, India T +91 80 2808 2808 F491 80 4014 3150/2852 3423 CIN No. L85110KA1993PLC014937 www.syngeneintl.com May 12, 2020 To, To, The Manager Listing The Manag
Slide 2: Investor Presentation
Investor Presentation May 12, 2020 Strictly confidential and privileged
Slide 3: Safe harbour
Safe harbour Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements
Slide 4: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Industry Recognition
Slide 5: Contents: Operating and Financial Highlights
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Industry Recognition
Slide 6: Syngene reports solid Q4 FY20 growth
Syngene reports solid Q4 FY20 growth Operating Highlights Financial Highlights ▪ Continued growth in the Discovery Services and strong ▪ Milestone quarter, with quarterly revenue crossing the INR 6,000 performance in Development Services business were the key Mn mark for the first time growth driver
Slide 7: Update on COVID-19
Update on COVID-19 Business operations temporarily suspended Priorities in these uncertain times in the first few weeks of April, gradually resumed operations from April 20, 2020 Safety and wellbeing of our people ▪ Invoked business continuity plans and implemented full employee protection measures
Slide 8: Financial Performance
Financial Performance All figures in INR Mn unless otherwise specified P&L Summary Q4 FY20 Q4 FY19 YoY Change ▪ Strong growth momentum witnessed across the business Revenue 6,278 5,547 13% EBITDA 2,246 1,808 24% ▪ Q4 Revenue growth driven by very strong performance in EBITDA Margin 36% 33% Discovery
Slide 9: Contents: Syngene Company and Business Overview
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Industry Recognition
Slide 10: Putting science to work: Who we are and what we do
Putting science to work Who we are and what we do ▪ Offering integrated research, development and manufacturing services to take projects from target to the clinic ▪ Combining world class research expertise, technology and infrastructure to reduce costs and time to market ▪ Converting R&D to a varia
Slide 11: The Syngene advantage
The Syngene advantage Integrated service provider offering end-to end Talented scientific and techno-commercial teams, drug discovery, development and manufacturing led by experienced management, moving beyond cost services on a single platform arbitrage to innovation International accreditations –U
Slide 12: Multiple layers of growth
Multiple layers of growth Expand/Extend Existing Clients Capacity Expansion - High service integration - Consistent investment - Dedicated centers model - FTE services, manufacturing, formulation, biologics, stability Engage New Clients - Tailored service offerings and Client Capacity dedicated pers
Slide 13: Managing risks
Managing risks Mitigation Risk Mitigation • Widening scope of engagement through new service offerings Client retention and • BCP in place to ensure continuity of • Investment in business development growth operations (Technology to aid remote Business continuity due to working, Continuous vendor en
Slide 14: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Industry Recognition
Slide 15: Biocon Group
Biocon Group Syngene’s Shareholding Pattern* • Biocon Limited, founded in 1978, is an innovation-led global biopharmaceuticals company • Syngene, a subsidiary of Biocon Limited, was established in 1993 as India’s first Contract Research Organization - Company has 25 years plus of unparalleled 5% exp
Slide 16: Our journey so far
Our journey so far… Foundation Globalization and strategic acquisition • Operations started • Expanded into formulations development • Expansion of R&D Lab • Contract with Endo Pharmaceuticals to develop novel anti cancer biological • Granted 100% Export Oriented Unit (EOU) therapeutic molecules sta
Slide 17: Our Company at a glance
Our Company at a glance All figures in INR Mn unless otherwise specified Overview Track Record • Integrated Drug Discovery, • Collaborations and Our Vision Development and partnerships to deliver To be a world class partner delivering Manufacturing service numerous clinical candidates innovative sci
Slide 18: Our collaboration models
Our collaboration models Client Base FY 20 362 FY 19 331 FY 18 316 Dedicated R&D labs Full-time equivalent (FTE) Fee for service (FFS) • Dedicated scientific and • Dedicated scientific resources • Flexible, on-demand resources with targeted skill FY 17 293 support personnel, selected from partner-sp
Slide 19: Our dedicated R&D centers are an industry leading model
Our dedicated R&D centers are an industry leading model Largest R&D Center in Asia for BMS Dedicated R&D Center in India for Exclusive R&D Center for Amgen Inc. Herbalife’s 1st Nutrition Research (2009). Contract extended till 2026 Baxter (2013). Contract extended in India (2016) and Development Lab
Slide 20: End-to-end platform: one-stop-shop for discovery, development and manufacturing
Our end-to-end platform enables us to be a 'one-stop-shop' for discovery, development and manufacturing (small and large molecules) Discovery Development Manufacturing Chemistry Drug Substance Clinical Supplies Drug Product Small Molecules Large Biology Molecules Integrated Drug Substance – HPAPI Dr
Slide 21: Discovery Services: From target to a drug candidate
Discovery Services: From target to a drug candidate Candidate Hit to lead Lead optimisation Development selection Candidate Candidate 5 Lead Selection Development Compounds Exploratory PK, Tox and Developability Assessment 20 Lead In-Vivo DMPK Profiling, Compounds CADD 500 Lead Generation of focused
Slide 22: Development Services
Development Services ▪ Encompass activities across multiple disciplines as a molecule moves from pre- clinical to clinical trials Preclinical Studies ▪ Key activities include: Drug product ▪ Drug substance development (process R&D and optimisation) Drug Dvpt. Substance ▪ Drug product development (pr
Slide 23: Manufacturing Services
Manufacturing Services Small Molecules • State-of-the-art cGMP facility to manufacture new chemical entities (NCEs) • Designed to support multi gram to 100s of kgs/ batch of Intermediates and APIs for clinical trials • New greenfield investments done in Mangaluru to support larger commercial scale r
Slide 24: We continue to invest in state-of-the-art infrastructure
We continue to invest in state-of-the-art infrastructure HQ Campus – 90 Acres where most of Syngene’s capabilities are housed today R&D Expansion: Genome Valley, Hyderabad, India commenced operation in Aug 2019 Biologics Expansion: HQ Campus Biologics Manufacturing Plant, Full capacity to be operati
Slide 25: Supported by our highly experienced and qualified team of scientists
Supported by our highly experienced and qualified team of scientists ~5,000 Strong pool of employees* 9% 01 Create competitive edge over peers 22% ~460 ~1160 02 Deliver quality output to clients PhDs 03 Led by dedicated and experience management Master's Degree team Others We are one of the largest
Slide 26: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Industry Recognition
Slide 27: Q4 FY20 financial highlights
Q4 FY20 financial highlights All figures in INR Mn unless otherwise specified Revenue (INR Mn) Particulars Q4 FY20 Q4 FY19 YoY Change Revenue 6,278 5,547 13% 6,278 Material and Power costs 1,562 1,608 (3%) 5,547 Employee costs 1,641 1,312 25% Q4 FY19 Q4 FY20 Gross Margin 3,075 2,627 17% EBITDA (INR
Slide 28: FY20 financial highlights
FY20 financial highlights All figures in INR Mn unless otherwise specified Particulars FY20 FY19 YoY Change Balance Sheet Highlights Revenue 20,935 19,007 10% Material and power costs 5,652 5,726 (1%) Employee costs 5,804 4,727 23% As on 31st March 2020 Gross Margin 9,479 8,554 11% Gross Margin (%)
Slide 29: Strong track record of growth and profitability
Strong track record of growth and profitability ▪ Growth driven by increase in sales from existing clients and acquisition of new clients ▪ “Engage, expand and extend” strategy to extend client relationship over a longer period of time ▪ Growth in total number of clients ▪ Increase in average revenu
Slide 30: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Industry Recognition
Slide 31: Consistently received recognition for our scientific capability and best practices
Consistently received recognition for our scientific capability and best practices • Ranked as one of the 25 fastest growing companies in India by Outlook Business • India Pharma Award 2019 - For “Excellence in Contract Research and Manufacturing Services” at CPhI and P-MEC India Expo. • Organizatio
Slide 32: Thank you
THANK YOU For more details www.syngeneintl.com • Visit www.syngeneintl.com • IR Contact : Sapna.H.B + 91 806 775 9807 investor@syngeneintl.com Putting Science to Work
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