Alivus Life Sciences Ltd · NSE:ALIVUS
Alivus Life Sciences — Glenmark Life Sciences — Investor Day (November 2022)
20 slides from Alivus Life Sciences's investor day presentation, Nov 17, 2022
Slide 1: Exchange filing cover letter for Investor Day presentation
November 17, 2022 To, To, Dy. General Manager The Manager - Listing, Department of Corporate Services, National Stock Exchange of India Ltd., BSE Ltd., Plot No. C/1, G Block, P. J. Towers, Dalal Street, Bandra Kurla Complex, Fort, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Ref: Scrip Code: 543322
Slide 2: Glenmark Life Sciences – Investor Day
Glenmark Life Sciences – Investor Day 17th Nov 2022 The St. Regis, Mumbai
Slide 3: State of the Market
State of the Market Healthcare budgets, Countries encouraging local production to India (and China) continue to be worldwide, under stress secure supply and control costs relevant due to advantages Formulations • In manpower API • Infrastructure cost • Technology and supply ecosystem Higher Outsourc
Slide 4: GLS in a Sweet Spot
GLS in a Sweet Spot Parameters Commodity Players GLS Specialty Portfolio Depth and Process Technology & Regulatory Growth Strategy/USP Scale and cost leadership efficiency complexity Volumes/Capex Asset Turns Competition Dependence on Top Products Margin Resilience (to headwinds) 3
Slide 5: Path towards a Sustainable business
Path towards a Sustainable business Widen Geographic Presence for Generic APIs. Diversify customer A base and increase CDMO Footprint Increase portfolio depth. Add complex molecules with higher entry B barrier. Create new platforms e.g. Oncology. Maintain Sustainable Operations through Quality, Envi
Slide 6: Wide Global Footprint
Wide Global Footprint 65 Countries Regulated Markets Emerging Markets India - Mix of Regulated and Emerging 60+ Emerging Markets 89 350+ 30+ Number of Customers 104 as of H1FY23 152 10+ Number of 17 DMF/CEP Filings as of H1FY23 120+ 440 10+ Filed 440 DMFs and CEPs 50+ 16 across major markets; United
Slide 7: Strategic Market Expansion
Strategic Market Expansion Revenue Break-up Other markets Geographic Growth from Revenue Break-up 2019 to 2022 Emerging (3 year CAGR)* North North Markets America America Emerging 19% 11% 15% Latam 19% Markets 22% Latam Latam 13% 16% Japan 55% Japan 2019 2022 3% Japan Europe India 10% 7% 24% India E
Slide 8: Diversified Customer Base
Diversified Customer Base 700+ Total number of customers 16 Of the world's 20 largest generics companies as customers 75% Business is from repeat customers since 2019 Top 1 Top 5 Top 15 700+ Revenue contribution 13.6% 25.2% 39.3% by customers 450+ APIs with the Customers 12 26 52 17.2% 34.7% 50.7% 1
Slide 9: Portfolio Enhanced for near-term Opportunities
Portfolio Enhanced for near-term Opportunities 137 Total number of APIs 24 New APIs launched since 2019 43 Existing APIs extended to new markets and customers since 2019 Existing APIs extended to Unique APIs added Market share of our APIs as new markets per June 2022 +24 EM Europe 137 No. of Product
Slide 10: Broader Portfolio reduces dependence on Top APIs
Broader Portfolio reduces dependence on Top APIs Top 5 Top 15 Chronic Vs Acute Key Therapeutic areas Diabetes CNS CVS Pain Management Revenue Others contribution 27.8% 57.5% by APIs 39% 32% 37% 28% 36% No. of 7% Customers 55 219 5% 5% 4% 4% 45% 43% 36.1% 61.0% 40% 42% 38% 57.5% Evolution of Top 27.8
Slide 11: Key Drivers for Sustainable Operations
Key Drivers for Sustainable Operations cGMP Compliant Environment Operational Safety People Manufacturing Management Efficiency • 3 US-FDA Inspected • Process Safety • Control of Solid, • Skill Development • Material Savings plants • Engineering Liquid and Gaseous & Career Growth • Operational Savin
Slide 12: Our Growth Strategy
Our Growth Strategy API CDMO Capacity R&D Business Business Expansion 11
Slide 13: Growth Strategy - API Business
Growth Strategy - API Business Second Wave Launches First Wave Growth Launches - New Markets - New Customers De-growth - Pricing Pressure Base Business Growth New Product Growth Base Business Base Business Overall Business 12
Slide 14: Growth Strategy - CDMO Business
Growth Strategy - CDMO Business Focus 2X Lifecycle 8.1% Target Aspiration to double % management Contribution to share of the business 505 (b) (2) the topline from current levels by opportunities 2027 3 CDMO Projects Large number of potential 1 opportunities Pipeline 13
Slide 15: Growth Strategy - Gradually Building Capacities
Growth Strategy - Gradually Building Capacities Calibrated capex to drive performance and growth 150-200 Capex every year (INR cr) 20% Volume CAGR ~1250 mtn 2027 2026 2.5-3x FATRstable to remain 2025 600mtn 2024 2023 Stable Cash Flows • Brownfield Expansion in Dahej and Ankleshwar to fund the CAPEX
Slide 16: Growth Strategy - Aggressive R&D Investments
Growth Strategy - Aggressive R&D Investments Aggressive Investment in product pipeline and cost Products in development pipeline improvement programs to stay ahead of the curve 03 R&D Centres (Mahape, Ankleshwar, and Dahej) 26 • 2 Iron complexes • 7 Oncology products R&D Spend (INR M) 2.8% R&D Spend
Slide 17: Financial Highlights
Financial Highlights Revenue (₹m) EBITDA (₹m) PAT (₹m) 21.6% 31.5% 20.8% 21,232 31.4% 4,187 18,852 31.0% 20.4% 5,919 3,516 15,373 6,308 30.6% 3,131 14,050 19.7% 2,927 4,840 4,298 9,992 2,156 29.7% 18.6% 3,099 FY19 FY20 FY21 FY22 H1FY23 FY19 FY20 FY21 FY22 H1FY23 FY19 FY20 FY21 FY22 H1FY23 EPS (₹) RO
Slide 18: Financial Highlights
Financial Highlights ₹ millions 2019 2020 2021 2022 H1FY23 Income Statement Revenue from Operations EBITDA for the year Profit for the year Basic EPS 14,050 4,298 2,927 27.1 15,373 4,840 3,131 29.0 18,852 5,919 3,516 32.6 21,232 6,308 4,187 35.6 9,992 3,099 2,156 17.6 74% EBITDA to FCF conversion Ba
Slide 19: Outlook
Outlook Mid Teens CDMO – To Growth Double by 2027 Stable Stable Cash Flow Margins to fund the Capex Industry Leading Dividend Payout 18
Slide 20: Q&A
Q&A 19 6 Glenmark LIFE SCIENCES
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