Hikal Limited · NSE:HIKAL
Hikal — Investor Presentation (November 2018)
43 slides from Hikal's investor presentation, Nov 20, 2018
Slide 1: Cover letter to BSE and NSE on investor meeting
Hfl<IIL 20th November, 2018 Dept. of Corporate Services Listing Department BSE Ltd. National Stock Exchange oflndia Ltd. P J Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Bandra (East) Mumbai - 400 001. Mumbai 400051. BSE Scrip Code : 524735 NSE Symbol : HIKAL Dear Sir, Subject: Intimat
Slide 2: November 2018 Presentation
HiKAL November 2018 Presentation
Slide 3: Safe Harbor
Safe Harbor Hfl<IIL This presentation and the accompanying slides (the "Presentation"), which have been prepared by Hikal 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 securit
Slide 4: Company Overview
Company Overview Hfl<IIL Leading Sustainable Technology driven company serving the Crop Protection & Pharmaceutical Industries • Amongst the few Global Company to offer customized, cost effective and sustainable solutions from R&D to Commercial Manufacturing • One of very few global and only Indian
Slide 5: Hybrid Business Model
Hybrid Business Model Hfl<IIL 1 Pharmaceuticals • Contract & Custom Manufacturing • Generics • Human Health • Animal Health • Strong Relationships 2 Crop Protection with Innovators, Mid size Pharma. Biotech • Custom Synthesis and & Generic Companies Contract Manufacturing of Agrochemicals, Intermedi
Slide 6: Evolution
Evolution Hfl<IIL Crop Protection R&D Commenced operations with a plant in Mahad. Established R&D center in Pune to focus on R&D and Second Plant commissioned augment pharmaceuticals in Taloja along with Merck, and crop protection USA processes Pharmaceuticals Diversified into pharmaceuticals busine
Slide 7: Timeline
Timeline Hfl<IIL Year Milestones 1988 ------ .. ·-·-·-··· Hikal is incorporated ··········-·-·-·············-·-·-·············-·-·-·············-·- 1991 ~ir~t tv1c1r1LJfc1c:tl.lrir19 sit~ c1t Mc1t,c1cjl:>.~gi ns ope.rations - Si9 ned.c1 lon9.t~rrr, supply c1g ree111~nt. with .He>esc ht I nc.t ia . 1
Slide 8: Global Regulatory Compliances
Global Regulatory Compliances Hfl<IIL © Hikal Limited 7
Slide 9: Regulatory Milestones
Regulatory Milestones Hfl<IIL 2018 2nd Successfu I PMDA 5th Successfu I approval for US FDA audit Bangalore Successfully for Bangalore facility completed facility EDQM Panoli & (European Bangalore Directorate for Panoli certified Pharma Sites Quality of by the US FDA are EU Audited Medicines} Panoli
Slide 10: Board of Directors
Board of Directors Hfl<IIL Jai Hiremath Sameer Hiremath Baba Kalyani Amit Kalyani Dr. Wolfgang Welter Chairman & MD Joint MD & CEO t."' ,, ,· Ranjit Shahani Sugandha Hiremath Prakash Mehta Kannan Unni Shivkumar Kheny © Hikal Limited 9
Slide 11: Management Team
Management Team Hfl<IIL Jai Hiremath Sameer Hiremath Chairman & MD Joint MD & CEO Anish Swadi Dr. Sudhir Nambiar Manoj Mehrotra Kumar lnamdar Sham Wahalekar Kumaar Priyaranjan Strategy & Research & Pharmaceuticals Crop Protection Finance HR Business Technology Development © Hikal Limited 10
Slide 12: Scientific Advisory Board
Scientific Advisory Board 01 © Hikal Limited
Slide 13: Focused Strategy
Focused Strategy • • Relationships • • © Hikal Limited
Slide 14: Value Chain
Value Chain Hfl<IIL Expertise in Custom Synthesis and Contract Research with capabilities scaling up from Gram to Kilo and Ton level of Production Lead molecule Launch identified • Expiry • • On patent Off patent Discovery research growing mature Off patent Pre launch Discovery Development Full scal
Slide 15: Contract Development & Manufacturing
Contract Development & Manufacturing Hfl<IIL Hikal's Business Model is to provide Services and Support across the Value Chain Early Pre- Launch Lifecycle develop Phase I Phase II Phase Ill development +4 years Extension ment ~--------------------------- ----------------------------------------------
Slide 16: Hikal – Locations
Hikal – Locations Hfl<IIL Pharmaceuticals Crop Protection / Ma> Research & Technology Pune Taloja Panoli Panoli © Hikal Limited 15
Slide 17: Manufacturing Capabilities
Manufacturing Capabilities 2009 2003 2001 2000 1997 1991 © Hikal Limited
Slide 18: Pharmaceuticals
Pharmaceuticals • • • • © Hikal Limited
Slide 19: Pharmaceuticals – Facility Overview
Pharmaceuticals – Facility Overview • • • • • • • • • • • • • © Hikal Limited
Slide 20: Existing Contracts
Existing Contracts • • • • • • • • © Hikal Limited
Slide 21: Future Strategy
Future Strategy • • • • • • • • • • • • • • • © Hikal Limited
Slide 22: Crop Protection
Crop Protection • • • • • © Hikal Limited
Slide 23: Crop Protection – Facility Overview
Crop Protection – Facility Overview • • • • • • • • • © Hikal Limited
Slide 24: Key Relationships
Key Relationships Hfl<IIL The product is Products Product is used to used on grapes, predominantly used control a wide range Niche plant Thiabendazole potatoes. On-Patent for control Ii ng broad of insects on rape. growth tobacco and New leaved weeds and for fruits, and as wood regulator vegetables.
Slide 25: Future Strategy
Future Strategy • • • • • • • • © Hikal Limited
Slide 26: Research & Technology Update
Research & Technology Update 500 6% R&D (in mn) As % to Sales 450 5% • 400 5% 350 4% 4% 4% 4% 300 4% 3% 250 3% 2% 440 200 345 347 362 2% • 150 2% 318 311 100 1% 50 102 133 0 0% • FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 • • • © Hikal Limited
Slide 27: Our R & T Efforts
Our R & T Efforts • • • • • © Hikal Limited
Slide 28: R&T – Facility Overview
R&T – Facility Overview • ▪ • ▪ ▪ ▪ ▪ • ▪ ▪ ▪ © Hikal Limited
Slide 29: Research & Technology Expertise
Research & Technology Expertise ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ © Hikal Limited
Slide 30: Human Resources – Our Intellectual Capital
Human Resources – Our Intellectual Capital • • © Hikal Limited
Slide 31: Animal Health – A Natural Progression
Animal Health – A Natural Progression Hfl<IIL Several Other Molecules Exclusively contract Completed the kilo lab trials of a Completed the pilot trials of Products are a mix of molecules manufactured for a product which we expect to another Animal Health product coming off- patent and new leading U
Slide 32: Key Strengths
Key Strengths New Experienced Management Team Regulatory Compliances Strong Research & Development Established Relations with Clients © Hikal Limited
Slide 33: Growth Drivers
Growth Drivers ▪ ▪ ▪ ▪ ▪ ▪ © Hikal Limited
Slide 34: Financials
Financials
Slide 35: Operational Highlights
Operational Highlights 13,001 2,418 +15% +19% 1,972 10,339 1,828 9,257 FY16 FY17 FY18 FY16 FY17 FY18 © Hikal Limited
Slide 36: Operational Highlights
Operational Highlights 7,528 +15% 5,473 +24% 6,106 5,691 4,233 3,565 FY16 FY17 FY18 FY16 FY17 FY18 © Hikal Limited
Slide 37: Operational Highlights
Operational Highlights +11% 986 +26% 865 805 745 777 547 FY16 FY17 FY18 FY16 FY17 FY18 © Hikal Limited
Slide 38: Standalone Profit & Loss – Quarterly & Half yearly
Standalone Profit & Loss – Quarterly & Half yearly Hfl<IIL Rs. Million Q2 FY19 Q2 FY18 Y-o-Y Hl FY19 Hl FY18 Y-o-Y Net Sales 3,948 2,923 35% 7,204 5,590 29% Expenditure 3,196 2,385 5,846 4,556 EBITDA 752 538 40% 1,358 1,034 31% Margin 19.0% 18.4% 18.9% 18.5% Other Income 3 4 17 20 Depreciation 236 2
Slide 39: Standalone Profit & Loss - Annual
Standalone Profit & Loss - Annual Hfl<IIL Rs. Million FY18 FY17 Y-o-Y Net Sales 13,001 10,339 28% Expenditure 10,583 8,367 EBITDA 2,418 1,972 23% Margin 18.6% 19.1% Other Income 44 34 Depreciation 856 691 Finance Costs 491 483 PBT 1,115 832 34% Tax 343 125 Net Profit 772 707 9% Margin 5.9% 6.8% © Hi
Slide 40: Standalone Balance Sheet
Standalone Balance Sheet Hfl<IIL Assets (Rs. Million) Sep-18 Mar-18 Liabilities (Rs. Million) Sep-18 Mar-18 Total Non Current Assets 8 ,673 8,518 Shareholders Fund 7,023 6,694 Fixed Assets Tangible Assets 6,663 6,301 Share Capital 247 164 Intangible Assets 31 35 Other Equity 6,776 6,530 Intangible A
Slide 41: Annual Dividend Payout
Annual Dividend Payout 26% 26% 21% 19% 14% 24% 24% 18% 19% 6.27 5.70 5.18 4.88 4.39 3.59 3.28 3.35 2.05 1.60 1.20 1.20 1.00 1.00 1.20 1.20 0.90 0.50 FY10 FY11 FY12 FY13 FY14* FY15 FY16 FY17 FY18 EPS DPS ▪ ▪ © Hikal Limited
Slide 42: Contact Us
Contact Us Hfl<IIL HfKAL SGA Strategic Growth Advisors Company: Investor Relations Advisors : Hikal Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24200MH1988PTC048028 CIN: U74140MH2010PTC204285 Mr. Sham V. Wahalekar Ms. Payal Dave/ Mr. Jigar Kavaiya +91-9819916314 / +91-9920602034 sham wahalekar
Slide 43: HiKAL
HiKAL