Slide 1: Investor Presentation Q1 FY 2016
Unichem Laboratories Limited UNICHEM Investor Presentation Q1 FY 2016 ©Unichem Laboratories Ltd 1
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
Slide 3: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 3
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 June, 2015 Amongst the top # 18 companies in representative (covered) market Domestic Operations contribute ~
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 Sale of Indore Pa
Slide 6: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 6
Slide 7: Unichem Consolidated Financials {Rs. Crores}
Unichem Consolidated Financials {Rs. Crores} 1,400 20.0% 18.2% 18.0% 1,200 16.1% 15.7% 1,202 16.0% 1,000 13.5% 1,081 1,133 14.0% 12.0% 800 876 UNICHEM 824 8.4% 10.0% 600 8.0% 400 6.0% 4.0% 200 2.0% - 0.0% FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Revenue *EBITDA Margin ©Unichem Laboratories Ltd 7
Slide 8: EBITDA Profile
EBITDA Profile from FY 13 onwards 60 30 53 51 50 50 48 48 25 44 43 42 40 40 20 20 33 19.1 18.6 32 18 18.2 30 17.3 17.2 15 UNICHEM 15 13.8 13 20 12 10 15 10 8 5 5.8 3 0 0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 EBITDA INR Crs EBITDA Margin % ©Unichem Laboratories
Slide 9: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 9
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% 6% 230 19% UNICHEM 651 55% 455, 38% 675, 56% 90 67 7% 6% 23 2% Formulation - Domestic API - Domestic India Business Regulated Markets Emerging Markets For
Slide 11: Revenue & Business areas break-up Q1 FY 2016
Revenue & Business areas break-up Consolidated – Q1 FY 2016 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 27 15, 8% 4% UNICHEM 63 19% 114, 35% 194 60% 201, 61% 21 7% 15 4% 6 2% Formulation - Domestic API - Domestic India Business Regulated Markets Emerging Markets Form
Slide 12: Portfolio Scene: Therapy Dominance & Price Control
Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy Major Revenue contributors: Chronic care accounts for ~58%* of Domestic Formulation Revenues Acute portfolio accounts for ~42%* of Domestic Formulation Revenues UNICHEM Portfolio Price Control Appx 16% of Domestic Portfolio (in value
Slide 13: Cash Generation – Pre R&D Expenses
Cash Generation – Pre R & D Expenses Rs. Crores FY FY FY FY FY FY FY Q1 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 52.4 1,345 Flow Spending: R&D 23.5 29.7 40.5 39.7 36.4 52.2 65.4 13.6 301 Expenditure Capital Expenditure Investment
Slide 14: Unichem in The Indian Pharma Market
Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT June, 2015 % Growth Total Size of the Market 90,085 14.3 Unichem Represented (Covered) Market 43,814 12.7 Sr. No Top Companies in Covered Market 1 Sun Pharma + Ranbaxy 4,824 15.5 2 UNICHEM Alkem 2,414 14.9 3 Mankind 2,02
Slide 15: Unichem's Therapy Gaps in the market
Unichem’s Therapy Gaps in the market MAT June15 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 46,272 51.4% 2,563 87.8% Unichem Represented Segments 43,814 48.6% 357 12.2% Total Market 90,085 100.0% 2,920 100.0% Unichem is represented
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
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
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
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 Rs150cr # 4 Brands in Top 300 brands – Losar H, Ampoxin, Unienzyme & Losar UNICHEM Anti- Musculo- Diabetic, 3% Others, 7% Skeletal, 4% In
Slide 20: Brand Building – Focus Brand Portfolio
Brand Building – Focus Brand Portfolio # Top 10 Brands contributes ~48% of the company’s domestic revenues – Losar H, Ampoxin, Unienzyme, Losar, Vizylac,Trika, Serta, Telsar, Unistar and Telsar-H – # UNICHEM # 50 Brands contributes ~81% of the company’s domestic revenues 4 - Rs. 50 +crore brands – #
Slide 21: Top Product Groups Performance
Top 10 Product Groups Performance Rs. Crores % MAT June, % % Market Contribution 2015 Growth Share to Revenue Total Revenue 856 9.2 1.0 100.0 Losar Group 170 6.8 34.3 19.8 Ampoxin Group 81 20.7 44.4 9.5 Unienzyme Telsar Group Olsar Group UNICHEM65 51 32 20.4 6.6 -0.3 17.5 3.5 5.4 7.6 5.9 3.8 Vizylac
Slide 22: AWACS Data – MAT June, 2015
AWACS Data – MAT June, 2015 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 7,139 13.7 358 5.0 2.0 Anti-Infectives 10,619 10.3 154 1.5 13.1 Gastroenterologicals Neuro-Psychiatry Musculoskeletals UNICHEM 5,454 2,9
Slide 23: AWACS Data Quarterly Sales & MAT
AWACS Data Quarterly Sales & MAT Indicators Market Size (Crs) Value Growth (%) Unichem (Crs) Value Growth (%) Q1 FY 16 23,800 14.8 232 15.1 Q4 FY 15 21,984 17.3 212 12.1 Q3 FY 15 21,597 10.3 199 (3.4) Q2 FY 15 22,122 12.3 215 13.0 Q1 FY 15 20,065 UNICHEM 8.8 202 10.7 Q1 FY 14 18,426 8.3 184 6.0 Q2 F
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,
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 Entered Hospital and Gynecology segm
Slide 26: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 26
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
Slide 28: International Business – Emerging Global Markets
International Business – Formulations Zone 1 : Emerging Global Markets Geographic Mix – FY 2015 Geographic Mix – Q1 FY 2016 UNICHEM Latin America, Latin 9% Russia/CIS, America, 1% 7% Russia/CIS, Africa, 40% Africa, 37% 18% Asia Pac, 51% Asia Pac, 37% ©Unichem Laboratories Ltd 28
Slide 29: International Business – Regulated Markets
International Business – Formulations Regulated Markets Geographic Mix – FY 2015 Geographic Mix – Q1 FY 2016 US / Canada, 73% UNICHEM Europe, 27% US / Canada, Europe, 28% 72% ©Unichem Laboratories Ltd 29
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 integr
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 Total # 37 products {(Own:# 34; In-Licensing: # 3) (Direct marketing by Niche#23
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 – Capitalize end-to-end value chain – Forge relationship with Innovators to become
Slide 33: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 33
Slide 34: API - World class Manufacturing Facilities and Infrastructure
API-World class Manufacturing Facilities and Infrastructure Roha (Maharashtra) – Multiple plants Regulatory Approvals – USFDA, EDQM, PMDA, EU GMP, KFDA, ISO, OHSAS Pithampur (MP) – Multiple plants Regulatory Approvals – USFDA, EUGMP, COFEPRIS UNICHEM More than # 500 Regulatory filings (DMFs, EDMFs.
Slide 35: API - Total Revenue
API - Total Revenue F Y 2015 Q1 F Y 2016 Revenue Break-up by Segment Revenue Break-up by Segment Domestic Domestic , 20% , 22% Exports, Exports, 80% 78% UNICHEM Export Revenue Break-up by Region Export Revenue Break-up by Region USA / USA / Canada, Canada, 2% ROW, ROW, 6% 31% 23% Europe, 67% Europe,
Slide 36: Management Focus: APIs for Generic Markets
Management Focus API’s for Generic Markets Improve Profitability of API Business Focus on profitable Generic APIs to New customers in existing Regulated Markets Penetrate into New Regulated Markets Achieve cost leadership in 3~4 molecules UNICHEM Long term Supply Contracts with customers in Regulate
Slide 37: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 37
Slide 38: 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
Slide 39: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 39
Slide 40: 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
Slide 41: Agenda
Agenda 1. Profile & History 2. Growth & Profitability 3. Business Operations – – – UNICHEM Domestic Operations International Operations API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 41
Slide 42: Standalone Financials (INR Lakhs)
Standalone Financials (INR Lakhs) STAND ALONE FINANCIALS Three months Three months Particulars ended June 30, ended June 30, % Growth 2015 2014 Sales Income from Operations: Domestic Operations Formulations 19,428 18,003 8% API 593 726 -18% International Operations Formulations 8,328 7,465 12% API 2
Slide 43: Thank You
Thank You ©Unichem Laboratories Ltd