Slide 1: Investor Presentation Financial Year 2020
Investor Presentation Financial Year 2020 2nd June 2020 BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2019 – Marksans Pharma Limited, All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The company's results may
Slide 3: FY20 Highlights
FY20 Highlights 12.9% 40.8% (YoY) (YoY) Mark Saldanha Managing Director And CEO Revenue EBITDA “I am extremely delighted to share with you the strong performance in this fiscal despite the lockdown due to the PAT Cash COVID pandemic at the end of March. Revenue for the year expanded by ~13% and EBIT
Slide 4: Operational Excellence leading to positive margin & return ratios
Operational Excellence leading to positive margin & return ratios EBITDA & PAT Margin ROCE 16.97% 24.50% EBITDA Margin 13.61% 19.96% PAT Margin 10.64% 9.51% 8.01% 12.06% 6.69% 3.90% 4.76% 1.46% Mar-17 Mar-18 Mar-19 Mar-20 Mar-17 Mar-18 Mar-19 Mar-20 Net Debt to EBITDA (x) ROE 18.60% 1.63 14.55% 0.89
Slide 5: Agenda
Agenda § Q4 & FY20 Performance Review § Operational review and financials § Company at a glance § Long-term strategy § Research & development § Segmental revenue composition § Investment rationale ©2020 – Marksans Pharma Limited, All Rights Reserved. 5
Slide 6: Q4 & FY20 Performance Review
Q4 & FY20 Performance Review ©2020 – Marksans Pharma Limited, All Rights Reserved. 6
Slide 7: Growth in Profitability
Growth in Profitability YoY% YoY% YoY Growth YoY Growth FY20 FY19 (Constant Q4FY20 Q4FY19 (Constant (%) (%) Rs. Cr. currency) currency) Total Revenue 1,134.5 1,004.7 12.9% 15.8% 335.4 257.1 30.4% 33.9% EBITDA 192.6 136.8 40.8% 41.1% 69.2 25.4 172.8% 173.4% EBITDA Margin% 17.0% 13.6% 336 bps 297 bps
Slide 8: Financials
Financials Consolidated (₹ Cr.) Q4’20 Q3’20 Q4’19 FY'20 FY'19 Total Revenue 335.4 287.7 257.1 1,134.5 1,004.7 Material Consumption 147.8 140.1 122.8 544.9 498.0 Gross Profit 187.5 147.5 124.7 589.3 502.1 Gross Margin % 55.9% 51.3% 50.4% 52.0% 50.2% Operating Expenses 118.3 100.2 109.0 397.1 369.9 EB
Slide 9: Business Review
Business Review YoY% Mix FY20 FY19 YoY Growth (%) (Constant (FY20) % currency) Rs. Cr. Europe, UK 510.0 413.0 23.5% 27.6% 44.9% US & North America 436.4 411.5 6.1% 6.3% 38.5% Australia & NZ 140.7 119.9 17.3% 26.6% 12.4% Rest of World (ROW) 47.4 60.3 -21.3% -21.1% 4.2% Consolidated Revenue from opera
Slide 10: Operational review and financials
Operational review and financials ©2020 – Marksans Pharma Limited, All Rights Reserved. 10
Slide 11: Consolidated Revenue up 12.9% led by Strong Growth in Europe and Australia
Consolidated Revenue up 12.9% led by Strong Growth in Europe and Australia Revenue (₹ Cr.) Topline driven by key geographies 13.6% FY20 1,134.5 • The revenue growth in FY20 was driven by increasing market share in the US & North American region FY19 1,004.7 CAGR US Region: FY18 913.1 • Revenue from
Slide 12: EBITDA Margin Increased during FY20 – Strong Growth Expected in FY21
EBITDA Margin Increased by 336 bps during FY20 – Strong Growth Expected in FY 21 EBITDA (₹ Cr.) EBITDA Margin (%) Steady growth in the profitability 17.0% FY20 192.6 54.9% • Gross margin improved from 50.2% during FY19 13.6% to 52.0% in FY20 due to better product mix in US, FY19 136.8 9.5% UK and Eu
Slide 13: Balance Sheet Trends (Mar 20 vs Mar 19)
Balance Sheet Trends (Mar 20 vs Mar 19) Particulars RoE RoCE Net Debt to EBITDA Mar-20 Mar-19 (₹ Cr.). 0.49 24.50% Net Worth 636.0 542.5 18.60% 19.96% 14.55% Capital 677.2 571.1 Employed Net debt -74.9 66.4 -0.39 Mar 19 Mar 20 Mar 19 Mar 20 Mar 19 Mar 20 Cash & Bank Ratios calculated using standardi
Slide 14: Company at a glance
Company at a glance ©2020 – Marksans Pharma Limited, All Rights Reserved. 14
Slide 15: Company Overview
Company Overview Business Description Business Model • 96% of revenues comes from regulated • Marksans Pharma Ltd., headquartered at Mumbai, is engaged in Research, markets Manufacturing & Marketing of generic pharmaceutical formulations • Key focus areas lie in OTC & prescription (Rx) drugs • Forwa
Slide 16: Marksans Pharma Evolution
Marksans Pharma Evolution Investment Phase Consolidation Phase Recovery Phase Growth Phase FY05 - 09 FY10 - 12 FY13 - 16 FY17 - 20 • Acquired 3 companies: • Integration of acquired • Acquired Time-Cap • The Company crossed Rs 1. Nova Pharmaceuticals companies was running Laboratories Inc. 1000 crore
Slide 17: Business Model
Business Model Focus on Regulated Forward integrated Wider product basket Markets business model • Marksans commenced business • Marksans commenced • Marksans commenced its journey with CRAMS directed at the UK operations as a formulations with products addressing the pain and Australian markets man
Slide 18: Company Structure
Company Structure Marksans Pharma (UK) Limited Marksans Holdings Limited 85+ product Distribution of quality licenses; generic pharma; only OTC; Wholesale Regional sales development Manufacturer of distributor of Manufacturer of range of across Asia (China, Japan, OTC Liquids & generic pharma OTC &
Slide 19: Manufacturing Capabilities
Manufacturing Capabilities Goa, India Southport, UK Farmingdale, USA • Manufactures oral solid tablets and soft • Manufactures non-sterile liquids, • Manufactures soft gels, tablets and gelatin capsules ointments and powder products capsules • One of the biggest manufacturing facility • Supplies to
Slide 20: Long-term strategy
Long-term strategy ©2020 – Marksans Pharma Limited, All Rights Reserved. 20
Slide 21: Strategic focus on Regulated Markets
Strategic focus on Regulated Markets Marksans Pharma generates ~96% of its revenues from regulated markets • Marksans Pharma entered strategic tie-ups and acquired key players in major markets to expand its global footprint • Company can generate higher margins by eliminating third parties from the
Slide 22: Niche Formulations with few Competitors
Niche Formulations with few Competitors Marksans Pharma is currently one of the most active Indian firms focused in Softgel segment • Differentiated offerings: Focused on softgel capsules with a view to build a differentiated set of offerings in the crowded generics market • Limited competition - Gi
Slide 23: Forward Integrated Business Model
Forward Integrated Business Model R&D and Manufacturing Goa & Mumbai* (India) Southport (UK) Farmingdale (US) Supply chain and EXPORT distribution Australasia UK/Europe UK & Europe North America / Canada ROW End Consumers Retail chains Pharmacy stores Hospitals *Mumbai has only R&D center in Navi Mu
Slide 24: Research & development
Research & development ©2020 – Marksans Pharma Limited, All Rights Reserved. 24
Slide 25: R&D Continues to be the Backbone of the Marksans
R&D Continues to be the Backbone of the Marksans In FY20, total R&D expenditure was Rs. 8.3 crore R&D Expenditure (₹ Crores) R&D activities comprises of: 14.6 • Developing generic products and pharmaceutical formulations 8.3 • Identifying niche areas (such as cardiovascular diseases, diabetes 5.3 an
Slide 26: Segmental revenue composition
Segmental revenue composition ©2020 – Marksans Pharma Limited, All Rights Reserved. 26
Slide 27: Global Reach Enables Reduction in Country Risk
Global Reach Enables Reduction in Country Risk REVENUE MIX Europe, UK US, North America Australia, NZ RoW Company’s business is 3% 6% 4% 6% 4% classified under 4 heads: 12% 14% 11% 12% 12% • North America/ US generics • Europe/UK generics 36% 41% 39% 45% 41% • Australia and New Zealand • Rest of the
Slide 28: The UK is the highest contributor to Marksans Pharma's revenues
The UK is the highest contributor to Marksans Pharma’ s revenues Overview of the market • The UK pharmaceutical market is estimated to grow from ~USD 29 billion in 2015 to ~USD 43 billion by 2020, at a CAGR of 8.4%, driven primarily by a robust life sciences 510.0 industry Company presence Total rev
Slide 29: Marksans is among a few Indian players with a proprietary marketing presence in the US
Marksans is among a few Indian players with a proprietary marketing presence in the US Overview of the market • The US holds over 30-40% of the global pharmaceutical market. It is expected to reach USD 190.4 billion by 2024, at a The projected CAGR of 10.6% during 2019-2024, due to favoring United 4
Slide 30: Australia and NZ region continue to deliver high teens growth in FY20
Australia and NZ region continue to deliver high teens growth in FY20 Overview of the market • Australia’s pharmaceutical market is set to rise from >$22.85 billion in 2016 to $25.2 billion by 2020 registering a CAGR of Australia 2% and New 140.7 Company presence Total Revenues Zealand (र Cr.) • Mar
Slide 31: Rest of the world: venturing out in the emerging countries
After harnessing the regulated markets, Marksans is venturing out in the emerging countries Overview of the markets • ROW includes markets of South East Asia, MENA, Russian Federation & Africa Rest of 47.4 Company presence Total Revenues the world (र Cr.) • Targeting four major clusters such as Sout
Slide 32: Investment Rationale
Investment Rationale ©2020 – Marksans Pharma Limited, All Rights Reserved. 32
Slide 33: Investment Rationale
The US, the UK and Company is widening its Australia are the key products portfolio in the Marksans’ markets with all of complex and high-margin them being now empowered generics segment with all regulatory approvals Marksans is among a few Marksans is among a mid and small-sized pharma handful of I
Slide 34: Investor Relations Team at Marksans Pharma
Investor Relations Team at Marksans Pharma Jitendra Sharma, CFO Dikshita Jain Marksans Pharma Ltd Christensen Investor Relations Tel: +91 022 40012000 Tel : +91 22 4215 0210 jitendra@marksanspharma.com djain@christensenir.com Corporate Office: 11th Floor Grandeur, Off Veera Desai Road, Opp Gundecha