Neuland Laboratories Ltd. · NSE:NEULANDLAB

Neuland Laboratories — Q4 FY2020 Earnings Presentation

23 slides from Neuland Laboratories's earnings presentation, 2020

  1. Slide 1: Investor Presentation Q4FY20

    Investor Presentation Q4FY20 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS Confidential. © 2020 Neuland Laboratories Ltd. All rights reserved. 1

  2. Slide 2: Safe Harbour

    Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "

  3. Slide 3: Business Overview

    Business Overview ©Confidential. 2019, Neuland© 2020 Neuland Laboratories Laboratories Limited. AllLtd. All rights Rights reserved. Reserved 3

  4. Slide 4: Company Overview

    Company Overview Legacy Scale Capability Reach 35+ years in pharma 3 regulatory approved Portfolio of 75+ 80+ countries of with robust quality manufacturing products across 10 presence systems, regulatory facilities with 731 KL therapeutic categories and compliance capacity framework 75% of revenues

  5. Slide 5: Our Journey

    Our Journey Laying Deepening our On course to Strong Foundation capabilities profitable growth Development Expansion Execution 01 02 03 1984-2003 2004-2012 2013-Today ▪ Incorporation in 1984 and IPO ▪ Investments in capacity ▪ Strategic alignment of business in 1994 expansion towards niche APIs and

  6. Slide 6: Business Verticals

    Business Verticals Work executed exclusively for the customers on Mature APIs, typically with products at various phases high competition in the API of their life-cycle(2) Custom space Manufacturing Prime Solutions (CMS) Prime APIs and Specialty APIs collectively form Specialty Generic Drugs Substan

  7. Slide 7: Generic Drug Substance (GDS)

    Generic Drug Substance(GDS) Prime APIs Capability Business Approach Strategy Forward ▪ 3 US FDA and EU GMP ▪ Work on molecules ▪ Maintain leadership compliant either with a business position in key manufacturing leadership approach molecule facilities or partnership with ▪ Work on process ▪ Collecti

  8. Slide 8: Custom Manufacturing Solutions (CMS)

    Custom Manufacturing Solutions(CMS) Services Business Approach Strategy Forward ▪ Manufacturing API to ▪ Local presence in US ▪ Add depth in technical customer and Japan with capabilities specifications technical as well as ▪ Investment in QBD ▪ Designing and commercial labs, process developing empl

  9. Slide 9: Business Mix

    Business Mix Revenue by Verticals Revenue by end territory 3% 6% 7% 6% JAPAN INDIA 5% 1% 23% 20% 14% ROW 25% 13% 25% EUROPE 20% 27% 48% 22% 54% 54% 47% 46% NORTH AMERICA 30% FY-17 FY-18 FY-19 FY-20 LATAM PRIME Niche/Speciality CMS OTHERS 3% 9

  10. Slide 10: Capabilities

    Capabilities ©Confidential. 2019, Neuland© 2020 Neuland Laboratories Laboratories Limited. AllLtd. All rights Rights reserved. Reserved 10

  11. Slide 11: Neuland Manufacturing Facilities

    Neuland Manufacturing Facilities U1, Bonthapally, U2, Pashamylaram, U3, Gaddapotharam, Unit Hyderabad 222.5 KL Hyderabad 310.2 KL Hyderabad 197 KL Year of 1986 1994 2017* establishment Employee 409 346 110 strength Mirtazapine, Sotalol Hcl, Levetiracetam, Levofloxacin, Ciprofloxacin Hcl, Entacapone,

  12. Slide 12: State-of-the-art R&D Centre

    State-of-the-art R&D Centre Infrastructure • 15 Development Labs with space for expansion • 60 Fume hoods • Analytical Labs R&D Facility, Hyderabad • Dedicated kilo Lab for Scale up • Dedicated Labs for Peptides • Separate facility for D2 analogues Significant R&D Achievements: • Several NCE APIs ad

  13. Slide 13: Compliance Framework

    Compliance Framework Quality Control EHS ▪ Quality Control facilitated with Wet ▪ Hazard and EHS Impact studies regularly Chemistry, Instrumentation & Microbiology conducted Laboratories ▪ 24X7 occupational health center with ▪ Equipped with sophisticated instruments ambulance facility like HPLCs, G

  14. Slide 14: Regulatory Filings

    Regulatory Filings 30 21 18 Filings with Japanese DMF China DMF filed Health Canada filed 54 DMFs with USFDA 213 18 18 ROW filings including Turkey, filings with filings with TGA KFDA Korea Mexico, Brazil etc ~453 EUDMF filings across Germany, 21 CEPs Received for different 846+ France, Poland, prod

  15. Slide 15: Financials

    Financials ©Confidential. 2019, Neuland© 2020 Neuland Laboratories Laboratories Limited. AllLtd. All rights Rights reserved. Reserved 15

  16. Slide 16: Standalone Financial Performance

    Standalone Financial Performance Standalone Q4FY20 (Y/Y) Standalone Q4FY20 (Q/Q) Standalone FY20 (Y/Y) ▪ Total income was Rs.7,666.0 mn ▪ Total Revenue was Rs.1,936.4 ▪ Total Revenue was Rs.1,936.4 mn as compared to Rs.6,703.2 mn, an mn as compared to Rs.1,740.0 as compared to Rs.2,046.4 mn increase

  17. Slide 17: Key Operating Metric

    Key Operating Metric YoY Analysis Quarter on Quarter Movement 8% 6% 6% 6% 7% 6% 18% 19% 26% 25% 28% 28% 23% 23% 18% 25% 25% 25% 51% 50% 51% 42% 42% 42% Q4 FY 19 Q4 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Prime Speciality/Niche CMS Others Prime Speciliaty/Niche CMS Others 17

  18. Slide 18: Key Operating Metric: CMS Business Depth

    Key Operating Metric CMS Business Depth 13 9 9 13 12 21 20 23 25 3 4 5 7 6 4 4 22 19 4 4 16 13 7 9 8 5 5 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Clinical Commercial *- Quantities taken for validation and launch are considered as Commercial 18

  19. Slide 19: No of CMS active projects increasing

    No of CMS active projects increasing Q4 FY20 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 12 4 5 5 9 6 41 Intermediate 7 4 2 5 8 9 35 Grand Total 19 8 7 10 17 15 76 Q3 FY20 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 12 4 4 5 9 6 40 Intermediate 7 3 2 5 8 9 34

  20. Slide 20: Historical Financials

    Historical Financials Financial Performance (INR Cr) Current Ratio (x) 1.4 1.4 1.2 1.2 1.2 766 100 670 2016 2017 2018 2019 2020 600 573 534 510 Debt to Equity (x) * 400 0.5 50 0.3 0.3 0.3 0.2 2016 2017 2018 2019 2020 200 Fixed Asset Turnover (x) 0 0 FY16 FY17 FY18 FY19 FY20 4.3 2.9 3.2 2.9 Sales 510

  21. Slide 21: Future Strategy

    Future Strategy ©Confidential. 2019, Neuland© 2020 Neuland Laboratories Laboratories Limited. AllLtd. All rights Rights reserved. Reserved 21

  22. Slide 22: Growth Strategy for Business

    Growth Strategy for Business Business Scale Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS and CMS accelerate business growth business Chemistry Relationships Deploy advanced Leverage on Long – chemistry skills to add standing relationships with

  23. Slide 23: Thank you for viewing this presentation.

    Thank you for viewing this presentation. For further information contact: IR Desk Diwakar Pingle Neuland Labs Christensen IR +91 40 3021 1600 +91 22 4215 0210 ir@Neulandlabs.com dpingle@christensenir.com Confidential. © 2020 Neuland Laboratories Ltd. All rights reserved. 23

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