Slide 1: Windlas Biotech Limited – Exchange filing cover letter
Windlas Biotech Limited Reg. Off.: 40/1, Mohabewala Industrial Area Dehradun, Uttarakhand 248 110, India Tel.:+91-135-6608000-30, Fax:+91-135-6608199 Corp. Off.: 705-706, Vatika Professional Point, Sector-66, Golf Course Ext. Road, Gurgaon, Haryana 122 001, India Tel.:+91-124-2821030 CIN-L74899UR200
Slide 2: Investor Presentation – May 2022
Windlas Biotech Limited Investor Presentation – May 2022
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Windlas Biotech Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: Managing Director’s Message
Managing Director’s Message “The company registered a consolidated adjusted revenue growth of 14.3% and 10.8% YoY in Q4 & FY22 respectively, on the back of strong growth in Domestic Trade Generics and Exports verticals. per share. In FY22, Domestic Trade Generics and Exports verticals grew by 39.0%
Slide 5: Financial Performance Highlights
Financial Performance Highlights 4
Slide 6: Quarterly Performance Highlights
Quarterly Performance Highlights Rs. Crores Revenue EBITDA & EBITDA Margin (%) 13.4% 10.4% 11.2% 11.7% +14% 122 Consolidated 107 +29% 14 11 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 CDMO Trade Generics Exports Vertical Revenue +11% +31% +14% 97 15 10 87 8 11 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 * G
Slide 7: Annual Performance Highlights
Annual Performance Highlights Rs. Crores Revenue EBITDA & EBITDA Margin (%) 13.4% 12.7% 10.4% 11.2% 11.2% 11.6% +11% 466 Consolidated* 421 55 54 FY21 FY22 FY21 FY22 CDMO Trade Generics Exports Vertical Revenue +5% +39% +10% 380 61 21 362 19 44 FY21 FY22 FY21 FY22 FY21 FY22 * Note: Adjusted Revenue &
Slide 8: Vertical Break-up
Vertical Break-up Q3FY22 Q4FY21 Q4FY22 11% 12% 82% 14% 81% 79% 3% 8% 8% CDMO CDMO CDMO Trade Generics & OTC Trade Generics & OTC Trade Generics & OTC Exports Exports Exports FY21 FY22 10% 13% 85% 81% 4% 4% CDMO Trade Generics & OTC Exports CDMO Trade Generics & OTC Exports 7
Slide 9: Consolidated Profit & Loss Statement – Q4 & FY22
Consolidated Profit & Loss Statement – Q4 & FY22 Particulars (Rs. Crores) Q4FY22 Q4FY21 YoY% FY22 FY21 YoY% Net Revenue from Operations 122.1 106.8 465.9 427.6 Net Revenue from Operations (Adjusted)# 122.1 106.8 14.3% 465.9 420.6 10.8% COGS 79.5 71.1 302.8 274.4 Gross Profit 42.6 35.7 19.3% 163.1 15
Slide 10: EBITDA Adjustments for Q4 & FY22
EBITDA Adjustments for Q4 & FY22 Q4FY22 EBITDA Adjustment (Rs. Crores) 0.4 1.8 4.1 14.3 5.1 11.1 Q4FY21 - Reported Higher/Lower Sales Gross Margin Employee Benefit Expenses Other Expenses Q4FY22 - Reported EBITDA Impact on Gross Margins Improvement/ Reduction Annul EBITDA Adjustment (Rs. Crores) 5.4
Slide 11: Company Overview
Company Overview 10
Slide 12: Windlas Biotech at Glance
Windlas Biotech at Glance Scalability Durability Profitability ▪ Top 5 Domestic Formulations CDMO in terms ▪ Well aligned workforce with ESOPs ▪ Consistently maintained Gross Margins of Revenue (CRISIL Report) above 35% since FY19 ▪ Digitalized Planning and Quality ▪ License to manufacture 4,641* Pr
Slide 13: Windlas Biotech’s Presence in Pharma Value Chain
Windlas Biotech’s Presence in Pharma Value Chain * * * * Drug API Formulation Research Packaging Development Manufacturing Manufacturing Value Chain CRO Vertical CDMO Vertical * Signifies Presence of Windlas Biotech in the Respective Verticals 12
Slide 14: Journey So Far…
Journey So Far… ▪ Commenced operations at ▪ Commenced operations at ▪ Received first USFDA inspection ▪ Investment of ₹75 Crores from Tano Dehradun Plant – I and initiated Dehradun Plant – IV clearance for the WHC Plant India Private Equity Fund II commercial production Revenues crossed INR 100 Cror
Slide 15: Strong Board of Directors…
Strong Board of Directors… ▪ 20+ years of experience in the ▪ Chairman of Confederation of Indian pharmaceutical industry, he has a Industries , Uttarakhand State Council, Bachelor’s degree in Law from the ▪ Established Windlas Biotech in 2001. Hemwati ▪ Led Windlas Biotech as MD till 2020 ▪ Nandan
Slide 16: …Coupled with Proficient Management Team
…Coupled with Proficient Management Team Mr. Ashok Kumar Windlass, Ms. Komal Gupta, Whole Time Director Chief Financial Officer Founded Windlass Biotech in 2001 Previously worked with DSM Sinochem Pharmaceuticals India 20+ Years of Experience in the industry, he has led Windlas Private Limited and A
Slide 17: Vertical Overview
Vertical Overview CDMO Trade Generics Exports ▪ CDMO vertical focused on providing ▪ This vertical consists of Trade Generic ▪ Export vertical is engaged in identifying products & services across- a diverse Products which include Nutraceutical high growth opportunities in Semi range of pharmaceutica
Slide 18: CDMO Business Highlights
CDMO Business Highlights No. Of Customers/ Buyers 285 Brand Used Brand of the end CDMO Customer Products Fixed dosage, Fixed dosage plus modified release, Customized generics, chewable/ dispersible and plain oral solids Revenue Mix (% of FY22) 81% Amongst the Top 5* in India Stand amongst the Top 5
Slide 19: Well Diversified Product Portfolio
Well Diversified Product Portfolio Windlas provides CDMO services & products ranging from product discovery, product development, licensing and commercial manufacturing of complex generic products in compliance with current GMP Company’s product portfolio predominantly overlaps with Fast Growing CDM
Slide 20: Large Marquee Customer Base
Large Marquee Customer Base ✓ Streamlined Client Acquisition Process Added New Customers at a rapid pace 285 Lead Proposal Contract Client +43% Identification Negotiation Winning Management 204 Creation 143 97 ✓ Key Factors that lead to Expansion of Customer base Audits by several MNC & Domestic Cus
Slide 21: De-Risking the Customer Concentration
De-Risking the Customer Concentration Long-term nature of the relationships help in pre-plan the Capex and eventually help in achieving sustainable growth and profitability Long-term Relationships Ease is Increased Strengthened Competitive cost with Pre-Planning Economies of Purchasing Power structu
Slide 22: Scalability In CDMO Provides Growth Visibility
Scalability In CDMO Provides Growth Visibility Globally 1/3rd of the R&D is outsourced to CDMO companies in formulations segment & India is emerging as a key player in CDMO Vertical Key reasons for Outsourcing by Pharma companies Significant R&D spends to continue to boost pharmaceutical growth acro
Slide 23: Underpinned by Strong Tailwinds for Organized Players
Underpinned by Strong Tailwinds for Organized Players Key Updates in CDMO industry Scaled CDMOs shifting identity from “Supplier” to “Partner” Customers asking for higher quality systems in R&D as well as CDMOs deploying superior R&D infrastructure, expertise and manufacturing capital ‘Raw materials
Slide 24: Capex & Outlook For Injectables
Capex & Outlook For Injectables Multiple Triggers for Revenue Growth and Improved Return Ratios Key Highlights Key Growth Drivers Impact ▪ Planned Rs. 50 Crores ▪ Rise in chronic diseases ▪ Would help improve Foray into High Growth Capex ▪ Emergence of New Drug economies of scale Injectables Busines
Slide 25: Industry Outlook
Industry Outlook ✓ Our product portfolio predominantly overlaps with Fast Growing Chronic segment and High Margin Complex Generic Vertical. ✓ Chronic Therapies and Oral Solids to dominate their respective categories for the next 5 years, in formulations segment Chronic therapies to continue to accou
Slide 26: Domestic Trade Generics Business Overview
Domestic Trade Generics Business Overview No. Of Customers/ Buyers 856 Stockists & Distributors (Served during FY22) Brand Used Company’s Brand Names Products Nutritional, Ayurvedic, Wellness & Personal Care Revenue Mix (% of FY22) 13% No. of Brands 218 25
Slide 27: Leveraging Trade Generics Market Opportunity
Leveraging Trade Generics Market Opportunity Highlights Key Drivers Fastest Growing SBV in the last three years chart INR Crores 61 Rs. 61 Crores Low costs compared to branded Trade Generics Revenue +31% Trade Generics SBV revenue (FY22) generics 44 27 30 Distributed through 856 Similar quality to b
Slide 28: Export Business Overview
Export Business Overview No. Of Customers/ Buyers Focused on Emerging & Semi-Regulated Markets Brand Used Own Brands and End Customer Brands Products Exported 68 Products during FY22 which includes Generic Medicines & Health Supplements Revenue Mix: 4.5% of FY22 Revenue from Operations Exports SBV:
Slide 29: Robust R&D Capabilities
Robust R&D Capabilities Robust R&D capabilities help in Customize and Market Complex; Generic Products to Customers and differentiate from Competition Consistent in R&D Expenditure Robust Growth in Complex Generics R&D INR Crores Key Highlights 41 R&D Expenditure No. of Variations in Complex Generic
Slide 30: Competencies in Manufacturing Facilities
Competencies in Manufacturing Facilities Efficiency & Effectiveness in Regulatory & Quality Compliance act as solid Entry Barriers Dehradun Plant 1 commenced Dehradun Plant 2 commenced Dehradun Plant 3 commenced Dehradun Plant 4 commenced operations in 2001 operations in 2014 operations in 2018 oper
Slide 31: Strategies & Way Forward…
Strategies & Way Forward… Strategic Investments/ Acquisitions • Top 5 CDMO status benefits the company from the Industry consolidation trend in an already highly fragmented market with 400 Organized and 15,000 unorganized players Injectables • Plan to invest ~INR 50.0 Crores of Capex to foray into H
Slide 32: Historical Financial Snapshot
Historical Financial Snapshot 31
Slide 33: Financial Snapshot
Financial Snapshot Consolidated Revenue (Rs. Crores) Adjusted* EBITDA (Rs. Crores) Adjusted** PAT (Rs. Crores) +15% 466 +13% 38 428 55 54 +39% 29 329 307 38 34 16 14 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Adjusted PAT** Margin (in %) Adjusted* EBITDA Margin (%) Adjusted** EPS 8.
Slide 34: Financial Snapshot
Financial Snapshot Consolidated Asset Turnover Ratio Net Worth (Rs. Crores) Net Debt to Equity (x) 4.9 4.8 4.7 4.6 0.1 395 0.0 0.0 FY19 FY20 FY21 FY22 194 210 199 -0.3 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 ROCE (In %) ROE (In %) Net Debt to EBITDA (x) 33% 35% 0.4 0.3 0.0 27% 19% FY19 FY20 FY21 FY2
Slide 35: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Consolidated Particulars (Rs. Crores) FY22 FY21 FY20 FY19 Net Revenue from Operations 465.9 427.6 328.9 307.3 COGS 302.8 274.4 211.6 191.9 Gross Profit 163.1 153.2 117.3 115.3 Gross Margin (%) 35.0% 35.8% 35.7% 37.5% Employee Expenses 63.4 58.3 43.6 43.0 Other Ex
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Assets (Rs. Crores) FY22 FY21 FY20 FY19 Equities & Liabilities (Rs. Crores) FY22 FY21 FY20 FY19 Non Current assets Equity Property, Plant and Equipment 88.4 92.5 66.1 59.7 Equity Share capital 10.9 6.4 6.4 6.4 Capital work in progress 7.6 0.0 0.0 4.6 Other Equ
Slide 37: Consolidated Cash Flow
Consolidated Cash Flow Consolidated Particulars (Rs. Crores) FY22 FY21 FY20 FY19 Net Profit before Tax and Extraordinary items 45.6 21.7 24.7 76.1 Adjustments for: Non Cash Items / Other Investment or Financial 10.0 36.3 17.3 -33.9 Items Operating profit before working capital changes 55.6 58.0 42.0
Slide 38: IPO Proceeds Utilization
IPO Proceeds Utilization Utilized as on 31st Particulars (Rs. Crores) Proposed Balance March, 2022 Purchase of equipment required for (i) capacity expansion of our existing facility at our Dehradun Plant – IV 50.0 2.6 47.4 (ii) addition of injectables dosage capability at our existing facility at De
Slide 39: Contact Us
Contact Us Company: Investor Relations Advisor: CIN: 74899UR2001PLC033407 CIN: U74140MH2010PTC204285 Ms. Komal Gupta Mr. Jigar Kavaiya / Mr. Chinmay Madgulkar Email: komal@windlasbiotech.com E: jigar.kavaiya@sgapl.net / chinmay.m@sgapl.net Contact no.: +91 124 2821034 T: +91 9920602034 / +91 9860088