Wuxi Apptec Co., Ltd. Class A · SSE:603259
Wuxi Apptec Co., Ltd. Class A — Q3 2022 Earnings Presentation
33 slides from Wuxi Apptec Co., Ltd. Class A's earnings presentation, Oct 27, 2022
Slide 1: WuXi AppTec Third Quarterly 2022 Results
WuXi AppTec Third Quarterly 2022 Results October 27, 2022 1 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
“ Forward-Looking Statements This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we belie
Slide 3: Agenda
01 Results Overview 02 Business Highlights 03 Financial Performance 04 Growth Outlook Notes: All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). 3 The unit of currency is RMB.
Slide 4: 1. Results Overview
1. Results Overview 4
Slide 5: Strong Revenue & Profit Growth in Q1-Q3 2022
Strong Revenue & Profit Growth in Q1-Q3 2022 Net Profit After Adjusted Non- Deducting Non- RMB billion Revenue IFRS Net Profit Net Profit Recurring Items +77.8% +81.9% +209.1% +143.3% 10.6 2.5 2.7 2.4 6.0 1.4 0.9 1.0 2021Q3 2022Q3 2021Q3 2022Q3 2021Q3 2022Q3 2021Q3 2022Q3 +71.9% +77.9% +107.1% +100.
Slide 6: Consistent Revenue Growth Quarter after Quarter
Consistent Revenue Growth Quarter after Quarter Third Quarter Revenue over RMB10 Billion RMB billion +14.6% +9.5% +32.8% 10.6 9.3 +6.6% 8.5 +7.1% +12.8% +4.9% +3.0% +13.3% +26.9% 6.4 6.0 +6.2% 5.6 +8.3% -11.3% +12.9% 4.7 5.0 +7.2% +2.8% 4.6 +10.8% +5.8% 4.0 3.4 3.6 3.1 3.2 2.7 2.8 2.3 2.5 2.1 2018Q1
Slide 7: Accelerating Growth on Back of CRDMO/CTDMO Business Model
Accelerating Growth on Back of CRDMO/CTDMO Business Model Follow the Science / Technology – Follow the Customer – Follow the Molecule RMB billion +70-72% 38.9-39.4 22.9 16.5 12.9 9.5 7.8 6.2 4.9 3.0 3.4 3.8 2.6 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E WuXi Chemistry WuXi Testing
Slide 8: Q1-Q3 2022 Business Highlights
Q1-Q3 2022 Business Highlights “Long-Tail” Strategy Global Footprint 1,000+ New Customers 32 Global Sites & Branch Offices 5,900+ Active Customers 45,646 Total employees Loyal Customer Base 42,569 Scientists & Technicians 100% Retention of Our Top 10 Customers Small Molecule CRDMO 2022 Q1-Q3 Pipelin
Slide 9: Our Platform & Business Model Continued to Perform Well
Our Platform & Business Model Continued to Perform Well Strong, Loyal & Execute Long-Tail Strategy Increase Customer Expanding Customer & Increase Support to Conversion to Sustain Base Large Pharma Growth Revenue composition Revenue composition Revenue composition Existing clients Top 20 Global Phar
Slide 10: Strong Revenue Growth from Customers Across All the Regions
Strong Revenue Growth from Customers Across All the Regions China Europe 5.32bn, +30% 2.90bn, +21% Revenue contribution: 19% Revenue contribution: 10% US 18.99bn, +110% Revenue contribution: 67% Japan, Korea & Others 1.19bn, +22% Revenue contribution: 4% 10
Slide 11: Continue to Attract, Train and Retain Talent to Support Rapid Growth
Continue to Attract, Train and Retain Talent to Support Rapid Growth Rapid Expansion of Talent Base 45,646 2,247 Forcast Actual Total Employees ending Overseas September 30 2022 Employees 37,972 4,597 45,646 34,912 26,411 21,744 Research Manufacturing 14,763 17,730 Employees Employees PhD, 1,379, 3%
Slide 12: Strong commitment to environmental protection and ESG
Strong commitment to environmental protection and ESG 10+ Global ESG Recognitions Sustainability Management and Technologies 2nd Green Chemistry Technology Platforms place in the entire global CXO • Biocatalysis industry in Y2022 • Flow Chemistry • Direct Isolation Effective Sustainability Managemen
Slide 13: 2. Business Highlights
2. Business Highlights Z ls Ban. =|
Slide 14: WuXi Chemistry: CRDMO Integrated Business Model Drives Revenue to Double in 2022
WuXi Chemistry: CRDMO Integrated Business Model Drives Revenue to Double in 2022 Development and Financial Performance Drug Discovery (R) Manufacturing (D&M) Capacity Construction Continued capacity construction. Began Revenue growth of 106.6% YoY to Revenue of discovery service Revenue of D
Slide 15: WuXi Chemistry: Growing CRDMO Pipeline
WuXi Chemistry: Growing CRDMO Pipeline 379,065 compounds* “R” Total 692 new 5,528 compounds “R+” molecules in 22’ Q1-Q3 666 1,738 Preclinical & Phase I 25 “D” 288 Phase II 53 Phase III 1 44 “M” Commercial Note: 15 1. 379,065 individually synthesized compounds in the past 12 months until September, 2
Slide 16: WuXi Chemistry: Global Footprint and Capacity Construction
WuXi Chemistry: Global Footprint and Capacity Construction China Shanghai Waigaoqiao Shanghai Zhangjiang Tianjin Wuhan, Hubei Chengdu, Sichuan Qidong, Jiangsu R D M R R R R R Shanghai Jinshan Changzhou, Jiangsu Changshu, Jiangsu Taixing, Jiangsu Wuxi city, Jiangsu D M D M M M D M United States Switz
Slide 17: WuXi Testing: Strong Growth in Lab Testing Drives Revenue and Profit Growth
WuXi Testing: Strong Growth in Lab Testing Drives Revenue and Profit Growth Financial Performance Lab Testing Services Clinical CRO & SMO Revenue growth of 25.3% Revenue from lab testing Revenue of clinical CRO and SMO maintained #1 services grew 35.2% YoY to SMO grew 4.6% YoY to leadership
Slide 18: WuXi Testing Business Highlights
WuXi Testing Business Highlights Growing Lab Capacity 1 Leverage Preclinical Opportunities new capacity under construction for mid 2023 delivery WIND Continuous Growing Momentum TOX IND • Robust and stable supply chain ensures strong growth of preclinical business • Clinical business development has
Slide 19: WuXi Biology: New Modalities Related Biology Services Drive Growth
WuXi Biology: New Modalities Related Biology Services Drive Growth Financial Performance Discovery Biology New Modalities DNA Encoded Library We have one of the largest discovery We continue to build new biology We have a leading DNA Encoded Revenue growth of 24.9% YoY biology enabling platf
Slide 20: Biology Capability Building and Business Growth in New Modalities
WuXi Biology Capability Building and Business Growth in New Modalities +76% YOY 20.5% of total revenue in 2022’Q1-Q3 (14.6% in 2021) In-vitro/In-vivo Biology Research Service for New Modalities • PROTAC® / Molecular Glue / Target Protein Degradation • Nucleic acid based modality (Oligo / RNA / ASO)
Slide 21: WuXi ATU: CTDMO Business Model Drives Growth
WuXi ATU: CTDMO Business Model Drives Growth Financial Performance Project Pipeline AAV - TESSA Launched TESSA™ in March 2022 Revenue grew 25.2% to 0.92bn; We focused on improving our TESSA™ is a revolutionary technology Testing grew 44%, Development CTDMO integrated enabling for AAV manufactu
Slide 22: WuXi ATU: Growing Pipeline on Our Integrated CTDMO Platform
WuXi ATU: Growing Pipeline on Our Integrated CTDMO Platform Testing Cell Therapies Gene Therapies CAR-T | TIL | Stem Cells AAV | LENTI | TESSA | OV US | EU | CN Provided Globally 35 in US 15 in CN 50 Preclinical & Phase I Integrated CTDMO Services to Cell & Gene Therapy product 7 in US 9 Phase II de
Slide 23: WuXi DDSU: Better Enabling China-based Customer Innovation
WuXi DDSU: Better Enabling China-based Customer Innovation, Business Evolving in 2022 Financial Performance Project Number Innovative R&D Business Evolvement During the Reporting Period, our Among the 159 projects that INDs DDSU’s revenue decline was Revenue declined 27.9% success-based drug
Slide 24: WuXi DDSU: Success-based Business Model with Potential Upside
WuXi DDSU: Success-based Business Model with Potential Upside IND filings1 Pivotal Trial & Beyond 159 Percentage of Domestic Innovative NCEs: 2019~2021 Avg.: 17.7% 6 NDA: ALK inhibitor Phase 3: CDK4/6 Inhibitor PI3K inhibitor 2016~2018 Avg.: 13.9% Anti-influenza Anti-tuberculosis Orexin1/2 Antagonis
Slide 25: 3. Financial Performance
3. Financial Performance Pinte
Slide 26: Financial Performance
Financial Performance Revenue Adjusted Non-IFRS Gross Profit RMB MM 38.7% RMB MM 28,395 38.0% 40.3% 10,991 22,902 40.0% 8,704 38.7% 16,535 16,521 42.2% 39.8% 6,670 12,872 5,155 6,397 9,614 3,830 7,765 3,277 2017 2018 2019 2020 2021 2021'Q1-Q3 2022'Q1-Q3 2017 2018 2019 2020 2021 2021'Q1-Q3 2022'Q1-Q3
Slide 27: Segment Revenue
Segment Revenue RMB MM WuXi Chemistry WuXi Testing +106.6% +25.3% 7,843 1,572 3Q 1,227 3Q 3,651 1H 1H 12,974 2,605 2,107 6,426 2021'Q1-Q3 2022'Q1-Q3 2021'Q1-Q3 2022'Q1-Q3 WuXi Biology WuXi ATU WuXi DDSU +24.9% +25.2% -27.9% 306 311 689 504 283 217 3Q 3Q 3Q 615 621 1H 920 1,091 1H 453 1H 455 2021'Q1-
Slide 28: Segment Non-IFRS Gross Profit
Segment Non-IFRS Gross Profit RMB MM WuXi Chemistry WuXi Testing +102.4% +36.0% 41.2% 36.8% 33.9% 42.1% 3,262 612 3Q 3Q 397 1,503 1H 1H 5,314 927 2,734 735 2021'Q1-Q3 2022'Q1-Q3 2021'Q1-Q3 2022'Q1-Q3 WuXi Biology WuXi ATU WuXi DDSU +22.8% -54.2% 41.1% 44.2% 41.8% 2021’Q1-Q3 2022’Q1-Q3 288 17 118 -3
Slide 29: Revenue and Adjusted Non-IFRS Gross Profit at Constant Exchange Rate (CER)
Revenue and Adjusted Non-IFRS Gross Profit at Constant Exchange Rate (CER) 3Q’22 YTD ex. 3Q’21 YTD (RMB Million) 3Q’22 YTD 3Q’21 YTD YoY YoY@CER Hedge @CER ex. Hedge Revenue 28,395 16,521 71.9% 28,182 15,897 77.3% Adjusted Non-IFRS Gross Profit 10,991 6,397 71.8% 10,801 5,773 87.1% Adjusted Non-IFRS
Slide 30: Adjusted Non-IFRS Net Profit
Adjusted Non-IFRS Net Profit RMB Million 2022'Q1-Q3 2021'Q1-Q3 Net Profit Attributable to the owners of the Company 7,378 3,562 Add: +77.9% (1) Share-based compensation expenses 503 419 Issuance expenses of Convertible Bonds 1 2 Fair value (gains)/losses from derivative component of RMB MM (617) 1,4
Slide 31: Capital Expenditure and Operating Cash Flow
Capital Expenditure and Operating Cash Flow 2022 Q1-Q3, operating cash flow grew 142% YoY Capital Expenditure maintained 2022-full year forecast of RMB 9-10 billion Terminate the approved issuance of H shares due to strong cash flow generated by record high financial Capital Expenditure perfor
Slide 32: 4. Growth Outlook
4. Growth Outlook i ls Be 3)
Slide 33: We Will Maintain Strong Growth Regardless of the Environment
We Will Maintain Strong Growth Regardless of the Environment 01 Unchanged growing global demand for new medical technologies & innovative drugs Science & technology keep progressing. Innovators continue to emerge. Mankind’s pursuit of health & longevity won’t change Keep enabling the global pharmace