Slide 1: Investor Presentation Q3 FY 16 Earnings Release
Investor Presentation Q3 FY 16 Earnings Release 10 February 2016 Investor Presentation Q3 FY 16 Earnings Release Confidential 1
Slide 2: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 3: Business Update
Business Update In Q3, Cipla achieved income from operations of Rs 3,107 crores; 12.3% growth vs. last year. Growth remains on track ▪ Impact to revenue due to change of distribution policy ▪ Excluding impact of distribution policy changes, our domestic business has grown at ~11% ▪ Export business g
Slide 4: Financial Performance Summary – Q3 FY 16
Financial Performance Summary – Q3 FY 16 Q3 FY 2015-16 Consolidated Actuals vs Q3 FY 15 (Rs Cr.) Income from Operations 3,107 12.3% Domestic Revenue 1,194 -0.4% Exports Revenue 1,833 28.5% PAT 343 4.7% PAT % 11% -0.9% Investor Presentation Q3 FY 16 Earnings Release Confidential 4
Slide 5: Financial Performance Summary – YTD FY 16
Financial Performance Summary – YTD FY 16 YTD 2015-16 Consolidated Actuals vs YTD FY 15 (Rs Cr.) Income from Operations 10,412 26.2% Domestic Revenue 3,853 3.1% Exports Revenue 6,313 51.6% EBITDA 2,282 38% EBITDA % 21.9% 1.9% PAT 1,425 54.7% PAT % 13.7% 2.5% Investor Presentation Q3 FY 16 Earnings R
Slide 6: Base business EBITDA margin level of ~18%
Base business EBITDA margin level of ~18% Q3 FY 2015 Q3 FY 2016 Reported EBITDA (Rs. Crore) 554 454 EBITDA Margin (%) 20% 14.6% Adjustments (%) Impact of Distribution Policy Change - ~2.5% Currency Impact (Largely due to ZAR) - ~0.7% One off impact (2%) - EBITDA post R&D expense* 18% 18% Core R&D pr
Slide 7: Performance Summary (1/4)
Performance Summary (1/4) India YTD Sales (Rx and Gx) India Rx and Gx Business impacted due to distribution policy changes Rs. crore Excluding impact of distribution policy changes, YTD the Rx business has grown ~13% and the Gx business has declined ~9% yoy 18 out of 22 brands of Cipla in top
Slide 8: Performance Summary (2/4)
Performance Summary (2/4) South Africa YTD Sales Strong sales growth across both private market & tender business ZAR mn Tender business ~30% of YTD revenues; significant growth in Q3 TEVA agreement gaining traction; strong performance on products like Copaxone 2596 43% Continue to capitalis
Slide 9: Performance Summary (3/4)
Performance Summary (3/4) Area Highlights • Including impact of one-offs, overall YTD growth of 138% as compared to FY 2014-15 • Entered into a definitive agreement to acquire 100% stake in InvaGen Pharmaceutical Inc. and North Exelan Pharmaceuticals Inc; transaction is expected to be completed in Q
Slide 10: Performance Summary (4/4)
Performance Summary (4/4) Area Highlights Operational • Capacity enhancement initiatives on track Performance • New capacity build underway for ARV products – expected completion in H1 FY 2016-17 • >200 formulation development projects underway • Top 50 projects address a market size of $30 bn based