Unichem Laboratories Limited · NSE:UNICHEMLAB

Unichem Laboratories — Q4 FY2016 Earnings Presentation

42 slides from Unichem Laboratories's earnings presentation, 2016

  1. Slide 1: Investor Presentation Q4 & FY 2016

    Unichem Laboratories Limited UNICHEM Investor Presentation Q4 & FY 2016 ©Unichem Laboratories Ltd 1

  2. Slide 2: 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

  3. Slide 3: 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

  4. Slide 4: Profile

    Profile One of the India’s leading integrated Pharmaceutical Companies with a strong presence in domestic formulations market Ranked 26th in the Domestic Formulations market as per AWACS MAT December 2015 Amongst the top # 18 companies in representative (covered) market Domestic Operations contribut

  5. Slide 5: History - Key Milestones

    History - Key Milestones (Last 10 Years)  Re-location of R&D from Mumbai to  USFDA Goa (CoE). re-certification of Filings Goa Plant & commissione Roha Plant d from new  USFDA’s surprise  USFDA  USFDA R&D Centre  Expansion of inspection at 3 plants certification certification  Commencement  S

  6. Slide 6: 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

  7. Slide 7: Unichem Consolidated Financials

    Unichem Consolidated Financials {Rs. Crores} 1,600 18.0% 16.1% 15.7% 1,400 1,335 16.0% 13.5% 14.0% 1,200 12.3% UNICHEM 1,133 12.0% 1,000 1,081 1,202 8.4% 10.0% 800 876 8.0% 600 6.0% 400 4.0% 200 2.0% - 0.0% FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Revenue EBITDA Margin ©Unichem Laboratories Ltd 7

  8. Slide 8: Standalone EBITDA Profile

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

  9. Slide 9: 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

  10. Slide 10: Revenue & Business areas break-up FY 2015

    Revenue & Business areas break-up Consolidated – FY 2015 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 128 71, 11% UNICHEM 6% 230 19% 651 455, 55% 38% 675, 56% 90 67 7% 6% 23 2% Formulation - Domestic API - Domestic India Business Regulated Markets Emerging Markets For

  11. Slide 11: Revenue & Business areas break-up FY 2016

    Revenue & Business areas break-up Consolidated – FY 2016 Revenue Break-up by Region Revenue Break-up by Region Rs. Crores Rs. Crores 146, 11% 72, UNICHEM 6% 270, 21% 498, 37% 766, 743, 57% 56% 73, 6% 65, 5% 21, 2% Formulation - Domestic API - Domestic Formulation - Exports India Business Regulated M

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

    Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy  Major Revenue contributors:  Chronic care accounts for ~57%* of Domestic Formulation Revenues  Acute portfolio accounts for ~43%* of Domestic Formulation Revenues UNICHEM Portfolio Price Control  Less than 20% of Domestic Portfol

  13. Slide 13: Cash Generation – Pre R&D Expenses

    Cash Generation – Pre R & D Expenses Rs. Crores FY FY FY FY FY FY FY FY Cumulative 2009 2010 2011 2012 2013 2014 2015 2016 Positive Cash 168.4 188.7 179.6 152.1 201.3 235.9* 166.5 194.2 1,487 Flow Spending: UNICHEM R&D 23.5 29.7 40.5 39.7 36.4 52.2 65.4 43.8 331 Expenditure Capital 45.5 44.3 84.2 10

  14. Slide 14: Unichem in The Indian Pharma Market

    Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT March, 2016 % Growth Total Size of the Market 98,414 12.6 Unichem Represented (Covered) Market 47,609 11.5 Sr. No Top Companies in Covered Market UNICHEM 1 Sun Pharma + Ranbaxy 5,162 14.6 2 Alkem 2,595 9.9 3 Mankind 2,23

  15. Slide 15: Unichem's Therapy Gaps in the market

    Unichem’s Therapy Gaps in the market MAT Mar’ 16 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 50,805 51.6% 2,582 87.6% Unichem Represented Segments 47,609 48.4% 365 12.4% Total Market 98,414 100.0% 2,947 100.0% UNICHEM  Unichem is r

  16. Slide 16: Domestic Formulations: Divisions (Chronic)

    Domestic Formulations: Divisions Covered Covered Chronic Therapies Specialist (6) Anti-Hypertensive & Anti- Cardiologists, CPs & GPs CVS-Life Anxiolytics Anti-Hypertensive, Statins Cardiologists, Diabetologists, CVS-Star & Anti-Anginal CPs & FPs Cardio-Diabeto (4) UNICHEM CD Anti-Hypertensive, Stati

  17. Slide 17: Domestic Formulations: Divisions (Acute)

    Domestic Formulations: Divisions Covered Covered Acute Therapies Specialist (5) Anti-Infective & GPs, NGPs, CPs, Gastrointestinal, Anti- pediatrics, & UVA Pyritic & related products Gynecologists, Extra Urban/Urban Anti- Infective/Allergy & Anti-Infective, Multi GPs, CPs, ENT, Dentists, Gastro (2) V

  18. Slide 18: Domestic Business: Customer Coverage

    Domestic Business: Customer Coverage Penetration 6 Chronic Verticals manned by ~1500 + CBAs 5 Acute verticals manned by ~1200 + CBAs UNICHEM Doctor Coverage: Over 100,000 doctors covered Chronic Coverage Cardiologists, Diabetologists, Neurologists, Psychiatrists, Nephrologists, Gynaecologists (Infer

  19. Slide 19: 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, 3%Others, 8% Musculo- Skeletal, 4% In 1

  20. Slide 20: Brand Building – Focus Brand Portfolio

    Brand Building – Focus Brand Portfolio # Top 10 Brands contributes ~47% of the company’s domestic revenues – Losar H, Ampoxin, Losar, Unienzyme, Vizylac, Trika, Serta, Telsar, Unistar, and Arkamin – # UNICHEM Top 50 Brands contributes ~80% of the company’s domestic revenues 4 - Rs. 50+ crore brands

  21. Slide 21: Top Product Groups Performance

    Top 10 Product Groups Performance Rs. Crores % MAT March, % % Market Contribution 2016 Growth Share to Revenue Total Revenue 896 13.7 0.9 100.0 Losar Group 173 9.3 34.8 19.3 UNICHEM Ampoxin Group 79 9.9 34.2 8.8 Unienzyme 62 11.8 16.3 6.9 Telsar Group 54 12.3 3.1 6.0 Olsar Group 35 13.9 5.3 3.9 Vizy

  22. Slide 22: AWACS Data – MAT March, 2016

    AWACS Data – MAT March, 2016 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 7,838 13.8 373 4.8 9.4 UNICHEM Anti-Infectives 11,031 5.2 157 1.4 12.4 Neuro-Psychiatry 3,461 15.7 118 3.4 20.1 Gastro Intestinal 6,132

  23. Slide 23: AWACS Data: Quarterly Sales & MAT

    AWACS Data Quarterly Sales & MAT Indicators Market Size (Crs) Value Growth (%) Unichem (Crs) Value Growth (%) Q4 FY 16 24,093 9.3 219 6.6 Q3 FY 16 24,979 14.3 224 12.7 Q2 FY 16 25,218 15 221 4.6 Q1 FY 16 23,800 14.8 232 15.1 Q4 FY 15 21,984 17.3 212 12.1 UNICHEM Q3 FY 15 21,597 10.3 199 (3.4) Q2 FY

  24. Slide 24: Globally Accredited Manufacturing Facilities

    Globally Accredited State of the art Manufacturing Facilities Formulations – Baddi (HP) – essentially catering to domestic and developing regulated market Regulatory approvals – MHRA & ANVISA – Ghaziabad (UP) – for catering to regulated and developing regulated markets Regulatory approvals – USFDA (

  25. Slide 25: 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 – Entry into unrepresented / uncovered market segments UNICHEM Entered Hospital and Gynecol

  26. Slide 26: 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 26

  27. Slide 27: International Formulation Business

    International Formulation Business Company has made significant investments in building infrastructure which includes new R&D centre and API plants for captive consumption to support international business Company is in process of further augmenting it API & Formulation capacities for expected futur

  28. Slide 28: International Business – Formulations: Emerging Markets

    International Business – Formulations Zone 1 : Emerging Global Markets Geographic Mix – FY 2015 Geographic Mix – FY 2016 Latin America, 7% Russia/CIS, 18% UNICHEMAfrica, 37% Latin America, 7% Russia/CIS, 4% Africa, 43% Asia Pac, 46% Asia Pac, 37% ©Unichem Laboratories Ltd 28

  29. Slide 29: International Business – Formulations: Regulated Markets

    International Business – Formulations Regulated Markets Geographic Mix – FY 2015 Geographic Mix – FY 2016 US / Canada, 73% UNICHEM Europe, 27% US / Canada, Europe, 35% 65% ©Unichem Laboratories Ltd 29

  30. Slide 30: 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 capability with in

  31. Slide 31: 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

  32. Slide 32: International Market – Management Focus

    International Market – Management Focus United States – Develop long term relationships with distributors, retailers and wholesalers – Finalize tie-ups for launching ANDA approved products – ANDA filings and approvals UNICHEM – Capitalize end-to-end value chain – Moving towards less competitive prod

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

  35. Slide 35: API - Total Revenue (Excluding Captive)

    API - Total Revenue (Excluding Captive) F Y 2015 F Y 2016 Revenue Break-up by Segment Revenue Break-up by Segment Domestic Domestic , 20% , 22% UNICHEM Exports, 80% Exports, 78% Export Revenue Break-up by Export Revenue Break-up by Region Region USA / USA / Canada, 2% Canada, ROW, ROW, 5% 31% 17% Eu

  36. Slide 36: 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 36

  37. Slide 37: R&D 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

  38. Slide 38: 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 38

  39. Slide 39: 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

  40. Slide 40: 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 40

  41. Slide 41: Standalone Financials (INR Lakhs)

    Standalone Financials (INR Lakhs) STAND ALONE FINANCIALS Three months Three months Year ended Year ended Particulars ended March ended March % Growth March 31, March 31, % Growth 31, 2016 31, 2015 2016 2016 Sales Income from Operations: Domestic Operations Formulations 17,126 14,622 17% 74,293 65,09

  42. Slide 42: Thank You

    Thank You ©Unichem Laboratories Ltd 42

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