Caplin Point Laboratories Limited · NSE:CAPLIPOINT
Caplin Point Laboratories — Q2 FY2023 Earnings Presentation
33 slides from Caplin Point Laboratories's earnings presentation, November 2022
Slide 1: Investor Presentation November 2022
Caplin Point Laboratories Ltd. Investor Presentation November 2022 Rated #1 in India for “Most Consistent Profitable Growth across the last 10 years”# Second Largest wealth creator for the decade ending 2020* #Value Research magazine – Wealth Insight June 2022 issue *The Economic Times
Slide 2: Disclaimer
Disclaimer The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any i
Slide 3: Content
Content 1 Q2 and H1FY23 Highlights 2 Understanding Caplin 3 Growth engines of Caplin 4 More about Caplin Headquarters, Chennai 3
Slide 4: Content: Q2 & H1FY23 Highlights
Content 1 Q2 & H1FY23 Highlights 1.1 Q2 & H1FY23 Highlights 1.2 Update on CAPEX Robust revenue growth coupled with stable 1.3 margins 1.4 P&L for the Quarter 2 Understanding Caplin 3 Growth engines of Caplin 4 More about Caplin CP-I plant at Suthukeny, Puducherry 4
Slide 5: Q2 & H1FY23 Highlights
Q2 & H1FY23 Highlights Financial Highlights • Revenue for H1FY23 grew by 18.4% YoY to Rs. 736 Cr • Gross Margins for H1FY23 were 54.3%; • EBITDA for H1FY23 was Rs. 238 Cr; EBITDA margins at 32.4% • H1FY23 PAT was at Rs. 178 Cr up 20.2% YoY • Cash and Cash Surplus at Rs. 778 Cr as at end of September
Slide 6: Q2 & H1FY23 Highlights (Cont'd)
Q2 & H1FY23 Highlights (Cont’d) US & Regulated Markets Business Highlights • Caplin Steriles’ (CSL) Total Revenue in H1FY23 crosses Rs. 100 Cr and stands at Rs. 103 Cr, with a growth of 63% YoY, with a healthy mix of Products, Milestone and Profit Share revenues. Product and milestone/profit-share r
Slide 7: Update on CAPEX
Update on CAPEX Caplin is venturing on a Capex journey of INR ~430-450 Cr. to expand existing capacities, widen its product portfolio and backward integrate majority of the products Capacity expansion and Oncology Backward Integration Maintenance Capex Capacity expansion in Caplin Steriles: ► Phase
Slide 8: Robust revenue growth coupled with stable margins
Robust revenue growth coupled with stable margins Total Revenue (INR Cr) EBITDA (INR Cr) PAT (INR Cr) 376 122 92 110 Q2 FY23 312 77 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 736 178 622 238 211 148 H1 FY23 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 8
Slide 9: P&L for the Quarter – Consolidated
P&L for the Quarter – Consolidated Value (INR Cr) Q2 FY23 Q2 FY22 YoY (%) Q1 FY23 QoQ (%) H1 FY23 H1 FY22 YoY (%) Revenue from Operation 359.05 303.53 18.3% 346.33 3.7% 705.38 603.97 16.8% Other Income 16.48 8.49 13.94 30.42 17.70 Total Revenue 375.53 312.02 20.4% 360.27 4.2% 735.80 621.67 18.4% - C
Slide 10: Content: Understanding Caplin
Content 1 Q2 & H1FY23 Highlights 2 Understanding Caplin 2.1 Transformation across the decades 2.2 Caplin’s core business Diversified Product Portfolio with a balanced 2.3 product mix Smart mix of manufacturing and outsourcing; 2.4 Product capacities 2.5 Research & Development Capabilities Delivered
Slide 11: Transformation across the decades
Transformation across the decades Started first commercial Started outsourcing from Work on Injectable unit shipments to US China starts Listed on Stock Exchange Entered Angola with Liquid injectable facility unique Stock & Sale Entered the Caribbean gets USFDA Approval Fidelity investment into mode
Slide 12: Our core business – Tapping the untapped markets
Our core business – Tapping the untapped markets Operating Revenue Revenue by Business Segment Revenue by Channel (H1FY23) (Emerging Markets) (Emerging Markets) (H1FY23) (H1FY23) 14% 3% 20% 75% 25% 65% 15% 83% Africa US LATAM Generic Branded Generic Distributors Direct Sales Tender Business US Busin
Slide 13: Diversified Product Portfolio with a changing product mix
Diversified Product Portfolio with a changing product mix Diversified Product Portfolio with zero reliance on single product / Therapy 650+ Pharmaceutical formulations 36 Therapeutic Segments Latest focus towards complex spaces Accounts for larger shelf share 4000+ Products Product mix covers over 6
Slide 14: Smart mix of manufacturing, outsourcing; product capacities
Smart mix of manufacturing, outsourcing; product capacities 55% of the products produced inhouse 45% of the products are outsourced from quality conscious partners in India and China Exports India China 70% 30% Total Annual Product Capacity 1,500 Mn 400 Mn 12 Mn Tablets Capsules Pre-Mix Bags 20 Mn 6
Slide 15: Research & Development Capabilities
Research & Development Capabilities 5 Dedicated Facilities INR 355 Cr Capex R&D Expense API Caplin has 5 dedicated R&D setups (3 Continuous capex investment of over Total R&D Spends (Capex + Opex) is Completed R&D for 22 APIs to be used – DSIR approved and 2 under INR 355 Cr over last 5 years toward
Slide 16: Delivered Robust Profitable Growth & Returns over the years
Delivered Robust Profitable Growth & Returns over the years Total Revenue EBITDA PAT (INR Cr) 1,308 (INR Cr) 433 (INR Cr) 1,085 352 308 905 301 251 736 250 238 215 668 207 177 178 553 145 412 134 313 87 96 255 62 177 39 58 26 41 * FY FY FY * FY FY FY FY FY FY H1 FY FY FY FY FY FY FY FY FY H1 FY FY F
Slide 17: Content: Growth Engines of Caplin
Content 1 Q2 & H1FY23 Highlights 2 Understanding Caplin 3 Growth Engines of Caplin 4 Appendix Amaris Clinical - CRO Clinic, Chennai 17
Slide 18: Caplin's Growth Engines
Caplin’s Growth Engines Core business to grow at historical pace… Caplin’s core business which is focused on Latin America and Francophone Africa is expected to grow at above industry- average pace with margins expected to improve with increased branded generics business … with US Business to boost
Slide 19: Core business to grow at historical pace…
01 | Core business to grow at historical pace… Overview Performance LATAM Operating Revenue from LATAM + Africa (INR Cr) ▪ No. 1 Indian player in Central America 1,147 ▪ Increased its LATAM footprint from two countries to 12 countries within a decade 976 ▪ Entry into Pharmacy sales through Healthcar
Slide 20: Caplin's Healthcare portal
Caplin’s Healthcare portal 20
Slide 21: … with US business to boost the overall growth…
02 | … with US business to boost the overall growth… Overview Injectable plant Inspection history ▪ Invested ~Rs.450 Crore in Capex and Opex for the 5 years since 2014 through Plant has undergone 3 US FDA, 2 EU GMP audits and 1 ANVISA successfully since 2016 internal accruals to enter the US and Reg
Slide 22: "Capital Plus" partner for Caplin Steriles Ltd.
“Capital Plus” partner for Caplin Steriles Ltd. Transaction Structure Transaction Details Objective ▪ Increase R&D capabilities to include Complex Injectable and Ophthalmic products portfolio and enhance capacities at Plant. ▪ Eight Roads and F-Prime Capital – Fidelity together bring access to a pow
Slide 23: Market opportunity in US
Market opportunity in US ~ $5 Bn $670mn Market size of our products approved and under Overall market size of our products in Pipeline, under approval approval and approved Overall market opportunity for Caplin in near future in US is about ~ $5 Bn 23
Slide 24: … backed by enhanced value chain…
03 | … backed by enhanced value chain… Our strategic decisions which will help us in scaling up value chain Direct approach Forward integration Backward integration Setting up of CRO Plant to Portal ➢ Direct marketing to ➢ Caplin moves further ➢ API Plant will cater to US ➢ CRO wing of Caplin ➢ Prop
Slide 25: Amaris Clinical - CRO Division of Caplin Point
Amaris Clinical - CRO Division of Caplin Point Amaris Clinical – Highlights High level of data integrity Cost savings of 72-bed state of compliance through end to Capex of INR 29 ~50% the art facility end automation Cr. internally accrued Technologically advanced Commenced operations in volunteer tr
Slide 26: … Strong balance sheet and…
04 | … Strong balance sheet and… Caplin’s strong balance sheet acts as a anchor for it’s vision of perceiving an ‘Invisible opportunity’ Receivable Days Total Capex (INR Cr) Fixed Asset Turnover Ratio 91.0 95 95 92 95 89 76.8 4.97 84 73.3 65.2 4.29 53.3 3.36 3.25 3.45 3.49 46.6 48.5 2.57 2.71 2.34 3
Slide 27: … Expansion into other geographies
05 | … Expansion into other geographies Caplin is expanding its presence in regulated countries, larger markets of Latin America, Russia/CIS markets, China, and other Asian Countries 27
Slide 28: Content: More about Caplin
Content 1 Q2 & H1FY23 Highlights 2 Understanding Caplin 3 Growth engines of Caplin 4 More about Caplin 4.1 Experienced and Visionary Board of Directors 4.2 Shareholder Information R&D centre 28
Slide 29: Experienced and Visionary Board of Directors
Experienced and Visionary Board of Directors Mr. C.C. Paarthipan Dr. Sridhar Ganesan Dr. R Nagendran Mr S Deenadayalan Chairman Managing Director Independent Director Independent Director ✓ 30+ Years of experience in ✓ 35+ Years experience in ✓ Ph.D in Ecology and Ethology ✓ Post Graduate degree in
Slide 30: Experienced and Visionary Board of Directors (cont'd)
Experienced and Visionary Board of Directors (cont’d) D Sathyanarayanan Dr. C K Gariyali, IAS Mr V Thirumalai R Viswanathan Independent Director Independent Director Independent Director Independent Director ✓ 30+ years experience in ✓ Retired IAS Officer and ✓ 50+ years experience in the ✓ Retired
Slide 31: Shareholder Information
Shareholder Information Caplin Shareholding as on 30th September 2022 Share Information (as on 30th September 2022) NSE Ticker CAPLIPOINT Others BSE Ticker 524742 27.85% Market Cap (INR Cr) 5,642 % free-float 31.12% Free-float market cap (INR Cr) 1,755 FII Total Debt (INR Cr) 0.17 2.15% Cash & Cash
Slide 32: Our Products
Our Products Caplin Point Laboratories Limited i CION ELECTROLITICA HIDRATANTE SUERO LIQUIDO ORAL
Slide 33: Investor Relations at Caplin
Investor Relations at Caplin Mr G Venkatram investors@caplinpoint.net Ernst & Young Rahul Thakur rahul.thakur@in.ey.com CIN: L24231TN1990PLC019053 | ISIN: INE475E01026 |DUNS:86-148-4556 | WWW.CAPLINPOINT.NET 524742 CAPLIPOINT ©2018, Caplin Point Laboratories Limited – All Rights Reserved. © 2018 Cap
Caplin Point Laboratories — Q2 FY2023 Earnings Presentation on 6ix