Unichem Laboratories Limited · NSE:UNICHEMLAB

Unichem Laboratories — H1 FY2016 Earnings Presentation

43 slides from Unichem Laboratories's earnings presentation, 2015

  1. Slide 1: Investor Presentation Q2 & H1 FY 2016

    Unichem Laboratories Limited UNICHEM Investor Presentation Q2 & H1 FY 2016 ©Unichem Laboratories Ltd 1

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation may include certain forward-looking statements and information that involve risks, uncertainties and assumptions based on current expectations, within the meaning of applicable laws and regulations. Forward-looking statements are all statements that concern pl

  3. Slide 3: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 3

  4. Slide 4: Profile

    Profile One of the India’s leading integrated Pharmaceutical Companies with a strong presence in domestic formulations market Ranked 26th in the Domestic Formulations market as per AWACS MAT June, 2015 Amongst the top # 18 companies in representative (covered) market Domestic Operations contribute ~

  5. Slide 5: History - Key Milestones

    History - Key Milestones (Last 10 Years) Re-location of R&D from Mumbai to USFDA Goa (CoE). re-certification of Filings Goa Plant & commissione Roha Plant d from new USFDA’s surprise USFDA USFDA R&D Centre Expansion of inspection at 3 plants certification certification Commencement Sale of Indore Pa

  6. Slide 6: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 6

  7. Slide 7: Unichem Consolidated Financials {Rs. Crores}

    Unichem Consolidated Financials {Rs. Crores} 1,400 18.0% 16.1% 15.7% 16.0% 1,200 13.5% 1,133 14.0% 1,000 1,081 1,202 11.0% 12.0% 800 876 UNICHEM 8.4% 10.0% 600 667 8.0% 6.0% 400 4.0% 200 2.0% - 0.0% FY 2012 FY 2013 FY 2014 FY 2015 H1 FY 2016 Revenue *EBITDA Margin ©Unichem Laboratories Ltd 7

  8. Slide 8: Standalone EBITDA Profile

    Standalone EBITDA Profile from FY 14 onwards 60 51 50 50 48 44 43 40 33 34 32 30 20 UNICHEM 19.1 15 18.6 18.2 15 10 13 8 13.8 12 11.3 5.8 3 0 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 EBITDA EBITDA Margins ©Unichem Laboratories Ltd 8

  9. Slide 9: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 9

  10. Slide 10: Revenue & Business areas break-up: FY 2015

    Revenue & Business areas break-up Consolidated – FY 2015 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 128 71, 11% 6% 230 19% UNICHEM 651 55% 455, 38% 675, 56% 90 67 7% 6% 23 2% Formulation - Domestic API - Domestic India Business Regulated Markets Emerging Markets For

  11. Slide 11: Revenue & Business areas break-up: H1 FY 2016

    Revenue & Business areas break-up Consolidated – H1 FY 2016 Revenue Break-up by Region Revenue Break-up by Region Rs. Crores Rs. Crores 70, 35, 10% 5% UNICHEM 124, 19% 235, 35% 383, 397, 58% 60% 38, 6% 33, 5% 14, 2% Formulation - Domestic API - Domestic India Business Regulated Markets Emerging Mark

  12. Slide 12: Portfolio Scene: Therapy Dominance & Price Control

    Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy Major Revenue contributors: Chronic care accounts for ~58%* of Domestic Formulation Revenues Acute portfolio accounts for ~42%* of Domestic Formulation Revenues UNICHEM Portfolio Price Control Appx 15% of Domestic Portfolio (in value

  13. Slide 13: Cash Generation – Pre R&D Expenses

    Cash Generation – Pre R & D Expenses Rs. Crores FY FY FY FY FY FY FY H1 FY Cumulative 2009 2010 2011 2012 2013 2014 2015 2016 Positive Cash 168.4 188.7 179.6 152.1 201.3 235.9* 166.5 98.8 1,391 Flow Spending: R&D 23.5 29.7 40.5 39.7 36.4 52.2 65.4 27.1 315 Expenditure Capital Expenditure Investment

  14. Slide 14: Unichem in The Indian Pharma Market

    Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT Sept, 2015 % Growth Total Size of the Market 93,021 13.7 Unichem Represented (Covered) Market 45,228 11.7 Sr. No Top Companies in Covered Market 1 Sun Pharma + Ranbaxy 4,950 14.6 2 UNICHEM Alkem 2,441 11.9 3 Mankind 2,01

  15. Slide 15: Unichem's Therapy Gaps in the market

    Unichem’s Therapy Gaps in the market MAT Sept’ 15 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 47,794 51.4% 2,595 87.8% Unichem Represented Segments 45,228 48.6% 360 12.2% Total Market 93,021 100.0% 2,955 100.0% Unichem is represente

  16. Slide 16: Domestic Formulations: Divisions

    Domestic Formulations: Divisions Covered Covered Chronic Therapies Specialist (6) Anti-Hypertensive & Anti- Cardiologists, CPs & GPs CVS-Life Anxiolytics Anti-Hypertensive, Statins Cardiologists, Diabetologists, CVS-Star & Anti-Anginal CPs & FPs Cardio-Diabeto (4) UNICHEM CD Anti-Hypertensive, Stati

  17. Slide 17: Domestic Formulations: Divisions

    Domestic Formulations: Divisions Covered Covered Acute Therapies Specialist (5) Anti-Infective & GPs, NGPs, CPs, Gastrointestinal, Anti- pediatrics, & UVA Pyritic & related products Gynecologists, Extra Urban/Urban Anti- Infective/Allergy & Anti-Infective, Multi GPs, CPs, ENT, Dentists, Gastro (2) V

  18. Slide 18: Domestic Business: Customer Coverage

    Domestic Business: Customer Coverage Penetration 6 Chronic Verticals manned by ~1500 + CBAs 5 Acute verticals manned by ~1200 + CBAs UNICHEM Doctor Coverage: Over 100,000 doctors covered Chronic Coverage Cardiologists, Diabetologists, Neurologists, Psychiatrists, Nephrologists, Gynaecologists (Infer

  19. Slide 19: Domestic Formulations Business

    Domestic Formulations Business Therapeutic Segment-wise break-up Leadership position in key participated segments – Largest brand / brand extensions in excess of Rs150cr # 4 Brands in Top 300 brands – Losar H, Ampoxin, Unienzyme & Losar UNICHEM Anti- Musculo- Diabetic, 3% Others, 7% Skeletal, 4% In

  20. Slide 20: Brand Building – Focus Brand Portfolio

    Brand Building – Focus Brand Portfolio # Top 10 Brands contributes ~49% of the company’s domestic revenues – Losar H, Ampoxin, Unienzyme, Losar, Vizylac,Trika, Serta, Unistar, Telsar, and Telsar-H – # UNICHEM Top 50 Brands contributes ~81% of the company’s domestic revenues 4 - Rs. 50+ crore brands

  21. Slide 21: Top Product Groups Performance

    Top 10 Product Groups Performance Rs. Crores % MAT Sept, % % Market Contribution 2015 Growth Share to Revenue Total Revenue 864 7.0 0.9 100.0 Losar Group 172 8.7 34.5 20.0 Ampoxin Group 78 11.2 44.3 9.1 Unienzyme Telsar Group Vizylac UNICHEM65 51 13.9 2.7 17.6 3.4 7.5 5.8 32 12.8 14.1 3.7 Olsar Grou

  22. Slide 22: AWACS Data – MAT Sept, 2015

    AWACS Data – MAT Sept, 2015 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 7,373 14.4 361 4.9 2.4 Anti-Infectives 10,602 6.3 152 1.4 6.2 Gastroenterologicals Neuro-Psychiatry Musculoskeletals UNICHEM5784 3189 37

  23. Slide 23: AWACS Data: Quarterly Sales & MAT

    AWACS Data Quarterly Sales & MAT Indicators Market Size (Crs) Value Growth (%) Unichem (Crs) Value Growth (%) Q2 FY 16 25,218 15 221 4.6 Q1 FY 16 23,800 14.8 232 15.1 Q4 FY 15 21,984 17.3 212 12.1 Q3 FY 15 21,597 10.3 199 (3.4) Q2 FY 15 22,122 12.3 215 13.0 Q1 FY 15 Q1 FY 14 Q2 FY 14 UNICHEM 20,065

  24. Slide 24: Globally Accredited State of the art Manufacturing Facilities

    Globally Accredited State of the art Manufacturing Facilities Formulations – Baddi (HP) – essentially catering to domestic and developing regulated market Regulatory approvals – MHRA & ANVISA – Ghaziabad (UP) – for catering to regulated and developing regulated markets Regulatory approvals – USFDA (

  25. Slide 25: Domestic Market – Management Focus

    Domestic Market – Management Focus Domestic Market – Enhancing relationship with customers and Focus on Field Productivity – Brand building through ‘Focused Brand approach’ – Increased coverage and compliance – Entry into unrepresented / uncovered market segments Entered Hospital and Gynecology segm

  26. Slide 26: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 26

  27. Slide 27: International Formulation Business

    International Formulation Business Company has made significant investments in building infrastructure which includes new R&D centre and API plants for captive consumption to support international business Company is in process of further augmenting it API & Formulation capacities for expected futur

  28. Slide 28: International Business – Formulations: Emerging Global Markets

    International Business – Formulations Zone 1 : Emerging Global Markets Geographic Mix – FY 2015 Geographic Mix – H1 FY 2016 Latin America, 7% Russia/CIS, 18% UNICHEMAfrica, 37% Latin America, 7% Russia/CIS, 8% Africa, 42% Asia Pac, 43% Asia Pac, 37% ©Unichem Laboratories Ltd 28

  29. Slide 29: International Business – Formulations: Regulated Markets

    International Business – Formulations Regulated Markets Geographic Mix – FY 2015 Geographic Mix – H1 FY 2016 US / Canada, 73% UNICHEM Europe, 27% US / Canada, Europe, 36% 64% ©Unichem Laboratories Ltd 29

  30. Slide 30: Regulated Markets - USA and LATAM

    International Business – Formulations Regulated Markets - USA and LATAM UNITED STATES: UNICHEM PHARMACEUTICALS (USA) Inc - wholly owned subsidiary to manage ANDA filings and Business Development Business model is based on leveraging Unichem’s technical expertise and production capability with integr

  31. Slide 31: Regulated Markets - Europe

    International Business – Formulations Regulated Markets EUROPE European presence through 100% subsidiary - Niche Generics, UK The subsidiary sells these regulatory dossiers and supply agreements to third party companies Total # 37 products {(Own:# 34; In-Licensing: # 3) (Direct marketing by Niche#23

  32. Slide 32: International Market – Management Focus

    International Market – Management Focus United States – Develop long term relationships with distributors, retailers and wholesalers – Finalize tie-ups for launching ANDA approved products – ANDA filings and approvals – Capitalize end-to-end value chain European Union – Align with existing Key Regio

  33. Slide 33: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 33

  34. Slide 34: API - World class Manufacturing Facilities and Infrastructure

    API-World class Manufacturing Facilities and Infrastructure Roha (Maharashtra) – Multiple plants Regulatory Approvals – USFDA (Re-Certified recently), EDQM, PMDA, EU GMP, KFDA, ISO, OHSAS Pithampur (MP) – Multiple plants Regulatory Approvals – USFDA (Re-Certified recently), EUGMP, UNICHEM COFEPRIS M

  35. Slide 35: API - Total Revenue

    API - Total Revenue F Y 2015 H1 F Y 2016 Revenue Break-up by Segment Revenue Break-up by Segment Domestic Domestic , 20% , 27% Exports, 80% UNICHEM Export Revenue Break-up by Region Exports, 73% Export Revenue Break-up by Region USA / USA / Canada, 2% Canada, ROW, ROW, 6% 31% 23% Europe, 67% Europe,

  36. Slide 36: API Management Focus

    Management Focus API’s for Generic Markets Improve Profitability of API Business Focus on profitable Generic APIs to New customers in existing Regulated Markets Penetrate into New Regulated Markets Achieve cost leadership in 3~4 molecules Captive supplies to meet growing formulations demand in regul

  37. Slide 37: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 37

  38. Slide 38: R&D Focus

    Focus Unichem has a two fold R&D strategy – Development of patent non-infringing processes for APIs – Development of Novel Drug Delivery Systems (NDDS) Chemical R&D – Centre of Excellence at Goa offering the most conducive environment for value added research – Developed novel, innovative & efficien

  39. Slide 39: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 39

  40. Slide 40: Management & Governance

    Management & Governance Board of Directors (Dr. P A Mody; Mr. Prafull Anubhai; Mr. Ramdas M Gandhi; Mr. Prafull D Sheth; Mr. Anand Mahajan and Dr. (Ms) Kinnera Murthy) Shareholders Audit Committee Compensation Grievance Committee Committee UNICHEM Chairman & Managing Director Divisional Heads Chairm

  41. Slide 41: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 41

  42. Slide 42: Standalone Financials (INR Lakhs)

    Standalone Financials (INR Lakhs) STAND ALONE FINANCIALS Three months Three months Six months Six months Particulars ended Sept 30, ended Sept 30, % Growth ended Sept 30, ended Sept 30, % Growth 2015 2014 2015 2014 Sales Income from Operations: Domestic Operations Formulations 18,847 16,658 13% 38,2

  43. Slide 43: Thank You

    Thank You ©Unichem Laboratories Ltd

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