Unichem Laboratories Limited · NSE:UNICHEMLAB

Unichem Laboratories — Q4 FY2017 Earnings Presentation

39 slides from Unichem Laboratories's earnings presentation, Jun 9, 2017

  1. Slide 1: Exchange filing letter for Q4 and FY2017 investor presentation

    Fax No : 91 (22) 2678 4391 / 5198 Tel. No. : 91 (22) 66888333 ie Ba | | eG al E al Website : http:/Awww.unichemlabs.com LABORATORIES LTD. CIN : L99999MH1962PLC012451. Registered & Corporate Office : Unichem Bhavan, Prabhat Estate, S. V. Road, Jogeshwari (West), Mumbai-400102, INDIA. Ref: ULL/SEC/201

  2. Slide 2: Investor Presentation Q4 & FY 2017

    Unichem Laboratories Limited UNICHEM Investor Presentation Q4 & FY 2017 ©Unichem Laboratories Ltd 1

  3. Slide 3: 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

  4. Slide 4: Agenda

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

  5. Slide 5: Profile

    Profile One of the India’s leading integrated Pharmaceutical Companies with a strong presence in domestic formulations market Ranked 25th in the Domestic Formulations market as per AWACS MAT Mar 2017 Amongst the top # 18 companies in representative (covered) market Domestic Operations contribute ~56

  6. Slide 6: History - Key Milestones

    History - Key Milestones (Calendar Year) ▪ USFDA’s surprise inspection at 3 (Last 10 Years) ▪ Re-location of plants R&D from ▪ USFDA Mumbai to Goa ▪ EIR received from re-certification of (CoE). Filings USFDA, for Goa, Goa Plant & commissioned Ghaziabad, Roha Plant from new R&D Pithampur and Roha ▪ U

  7. Slide 7: Agenda

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

  8. Slide 8: Consolidated Financials

    Consolidated Financials {Rs. Crores} 1,800 18.0% 16.1% 15.7% 1,600 1,536 16.0% 13.5% 1,335 1,400 14.0% 1,202 12.3% 1,133 UNICHEM 1,200 1,081 11.6% 12.0% 1,000 876 8.4% 10.0% 800 8.0% 600 6.0% 400 4.0% 200 2.0% - 0.0% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Revenue EBITDA Margin ©Unichem Labo

  9. Slide 9: Standalone EBITDA Profile

    Standalone EBITDA Profile from FY 15 onwards 44 44 44.4 43 39.6 33 34 34 33.7 31 15 12 UNICHEM 15 13.8 11.3 11.1 10.4 12.9 10.8 12.3 9.8 8 5.8 3 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 EBITDA MARGINS ©Unichem Laboratories Ltd 8

  10. Slide 10: Agenda

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

  11. Slide 11: Revenue & Business areas break-up

    Revenue & Business areas break-up Consolidated – FY 2017 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 16 , 1% 70 , 71, 65 , 5% 4% UNICHEM 5% 170 , 11% 609, 840 , 40% 339 , 56% 856, 22% 56% Formulation - Domestic International Business -US/Brazil India Business Regulat

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

    Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy ▪ Major Revenue contributors: ▪ Chronic care accounts for ~60%* of Domestic Formulation Revenues ▪ Acute portfolio accounts for ~40%* of Domestic Formulation Revenues UNICHEM Portfolio Price Control ▪ Less than 20% of Domestic Portfol

  13. Slide 13: Unichem in The Indian Pharma Market

    Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT Mar, 2017 % Growth Total Size of the Market 111135 10.3 Unichem Represented (Covered) Market 51533 9.3 Sr. No Top Companies in Covered Market UNICHEM 1 Sun Pharma + Ranbaxy 5571 9.6 2 Alkem 3071 15.0 3 Mankind 2486 11.8

  14. Slide 14: Unichem's Therapy Gaps in the market

    Unichem’s Therapy Gaps in the market MAT Mar’ 17 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 59,602 53.6% 2,661 88.1% Unichem Represented Segments 51,533 46.4% 358 11.9% Total Market 111,135 100.0% 3,019 100.0% UNICHEM ▪ Unichem is

  15. Slide 15: Domestic Formulations: Divisions

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

  16. Slide 16: Domestic Formulations: Divisions

    Domestic Formulations: Divisions Covered Covered Therapies Specialist Acute GPs, NGPs, CPs, Anti-Infective & pediatrics, & Gastrointestinal, Multi UVA Vitamins, NSAIDs, Anti- Gynecologists, ENT, Dentists Extra Pyritic & related products Anti- Urban/Urban Infective/Allergy & Gastro Wellness UNICHEM G

  17. Slide 17: Domestic Business: Customer Coverage

    Domestic Business: Customer Coverage Penetration Distinct vertical catering to Chronic segment manned by ~ 1300 +CBAs Distinct vertical dedicated to Acute segment manned by ~ 1200 +CBAs UNICHEM Doctor Coverage: Over 100,000 doctors covered Chronic Coverage Cardiologists, Diabetologists, Neurologists

  18. Slide 18: Domestic Formulations Business

    Domestic Formulations Business Therapeutic Segment-wise break-up Leadership position in key participated segments – Largest brand / brand extensions in excess of Rs170cr UNICHEM # 4 Brands in Top 300 brands Anti- – Losar H, Ampoxin, Losar & Unienzyme Diabetic, 4% Musculo- Others, 7% Skeletal, 5% In

  19. Slide 19: Brand Building – Focus Brand Portfolio

    Brand Building – Focus Brand Portfolio # Top 10 Brands contributes ~45% of the company’s domestic revenues – Losar H, Ampoxin, Losar, Unienzyme, Vizylac, Trika, Serta, Arkamin ,Unistar, and Telsar – # UNICHEM Top 50 Brands contributes ~79% of the company’s domestic revenues 4 - Rs. 50+ crore brands

  20. Slide 20: Top Product Groups Performance

    Top 10 Product Groups Performance Rs. Crores % MAT Mar, % % Contribution Market 2017 Growth to Revenue Share Total Revenue 992 14.5 0.9 100.0 Losar Group 202 21.2 38.3 20.4 UNICHEM Ampoxin Group 87 4.0 4.5 8.8 Unienzyme 60 0.0 15.7 6.0 Telsar Group 58 11.1 3.0 5.8 Vizylac 43 24.5 5.9 4.3 Olsar Group

  21. Slide 21: AWACS Data – MAT Mar, 2017

    AWACS Data – MAT Mar, 2017 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 8576 8.6 421 4.9 16.7 UNICHEM Anti-Infectives 11107 2.5 159 1.4 4.5 Neuro-Psychiatry 3767 11.0 136 3.6 18.7 Gastro Intestinal 6578 9.9 11

  22. Slide 22: Globally Accredited Manufacturing Facilities

    Globally Accredited State of the art Manufacturing Facilities Formulations – Baddi (HP) – essentially catering to Domestic and Emerging market Regulatory approvals – MHRA & ANVISA – Ghaziabad (UP) – catering to Regulated, Emerging and Domestic markets Regulatory approvals – USFDA (Re-Certified recen

  23. Slide 23: 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 UNICHEM – Entry into unrepresented / uncovered market segments – Optimal use of Manufacturi

  24. Slide 24: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 24

  25. Slide 25: International Formulation Business

    International Formulation Business Company has made significant investments in building infrastructure which includes state of the art R&D centre and API plants for captive consumption to support international business Company is in process of further augmenting it’s API & Formulation capacities UNI

  26. Slide 26: International Business – Formulations: Emerging Markets

    International Business – Formulations ACASIA : Emerging Global Markets Geographic Mix – FY 16 Geographic Mix – FY 17 Latin America, 7% Russia/CIS, 4% UNICHEM Africa, 43% Latin America, 10% Russia/CIS, 15% Africa, 42% Asia Pac, 46% Asia Pac, 33% ©Unichem Laboratories Ltd 26

  27. Slide 27: International Business – Formulations: Regulated Markets

    International Business – Formulations Regulated Markets Geographic Mix – FY 16 Geographic Mix – FY 17 US / Canada, 65% UNICHEM Europe, 35% US / Canada, Europe, 33% 67% ©Unichem Laboratories Ltd 27

  28. Slide 28: 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 UNICHEM capability

  29. Slide 29: 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 UNICHEM ▪ Total # 37 products {(Own:# 34; In-Licensing: # 3) (Direct marketi

  30. Slide 30: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 30

  31. Slide 31: API 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 UNICHEM Pithampur (MP) – Multiple plants Regulatory Approvals – USFDA (Re-Certified recently), EUGMP, COFEPRIS M

  32. Slide 32: API - Total Revenue (Excluding Captive)

    API - Total Revenue (Excluding Captive) F Y 2016 F Y 2017 Revenue Break-up by Segment Revenue Break-up by Segment Domestic Domestic , 22% , 15% Exports, 78% UNICHEM Export Revenue Break-up by Region Exports, 85% Export Revenue Break-up by Region USA / USA / Canada, Canada, ROW, 5% 9% 17% ROW, 31% Eu

  33. Slide 33: Agenda

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

  34. Slide 34: Research & Development 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

  35. Slide 35: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 35

  36. Slide 36: 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

  37. Slide 37: Agenda

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

  38. Slide 38: Standalone Financials (INR Lakhs)

    Standalone Financials (INR Lakhs) Analysis of Standalone results for Quarter and Year ended 31st March, 2017 Figures in INR Lakhs STANDALONE FINANCIALS STANDALONE FINANCIALS Three months Three months Year Ended Year Ended Particulars ended March 31, ended March 31, % Growth % Growth March 31, 2017 M

  39. Slide 39: Thank You

    Thank You ©Unichem Laboratories Ltd

Unichem Laboratories — Q4 FY2017 Earnings Presentation on 6ix