Highnoon Laboratories Limited · PSX:HINOON
Highnoon Laboratories — Investor Presentation (2024)
46 slides from Highnoon Laboratories's investor presentation, 2024
Slide 1: Corporate Briefing Session 2024
Corporate 2024 Briefing Session
Slide 2: Agenda
Agenda About Highnoon Pharma Industry Dynamics & Highnoon Financial Analysis Stock Market Presence Strategic Direction & Operations Future Outlook
Slide 3: About Highnoon
* Highnoon About X : Highnoon
Slide 4: Our Credo
Our Credo ‘Our purpose enriching life ~inspires us and guides us to consistently deliver ‘quality products. We enrich life by providing innovative disease management solutions, COurresponsibility is to the healthcare providers and to the patients who trust ‘our products. We meet the expectations, an
Slide 5: Highnoon Group
Highnoon Group Parent Subsidiary
Slide 6: Milestones
Milestones 1984 1994 2015 2021 Curexa Health (Pvt) Ltd Highnoon Laboratories Listed on Pakistan formed as wholly Forbes Asia’s 200 Best [‘HNL’] incorporated as Stock Exchange (PSX) owned subsidiary of Under A Billion - 2021 Private Ltd Company HNL 1985 2005 2017 2022 Launch World’s First Inauguratio
Slide 7: Forbes Asia
Highnoon Forbes Asia Only pharmaceutical company from Pakistan that has made it to the Forbes Asia Best under a Billion list
Slide 8: Highnoon Scale, Strength & Success
Highnoon Scale, Strength & Success Ranked 12th* Pharma Export Award Out of 700+ Pharmaceuticals PESA in 2024 Annual Group Net Revenue 8 Brands in 1 Billion Club PKR 24.63 bn (USD 88.4 Mn) ** 4-Year CAGR: 23.2% 17 New Product Launches 2 Manufacturing Facilities Pharmaceuticals Evolution Index 2024 10
Slide 9: Enriching Lives
Enriching Lives Human Resource Customer Universe A family of over 2000 employees, including one of the largest Field Force 42k+ Doctors Outreach of Medical Representatives Products Distribution Network 150+ Covering major 52k+ Pharmacies Therapeutic areas
Slide 10: Highnoon Business Partners
* Highnoon Highnoon Business Partners Zé (% Almirall Cipla om rive | OPsvilbiss WG yuwell Mitsubishi Tanabe Pharma
Slide 11: Highnoon Toll Partners
Highnoon Toll Partners # sichnoon C—) Abbott -»Chiesi
Slide 12: Pharma Industry Dynamics & Highnoon
Pharma Industry Dynamics & Highnoon
Slide 13: Market Dynamics
Market Dynamics Universe Market Size Top Players PKR 1000+ bn 750+ Top 15 companies Pharma Companies dominate 61% of GOLY +21% total market share *IQVIA MAT DEC 2024
Slide 14: Pharma Industry Over The Years
Pharma Industry Over The Years Industry Gross Revenue 1,200 1,009 1,000 Gross Revenue (PKR in billions) 830 800 705 615 600 502 455 394 400 324 344 280 247 200 - 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source : IQVIA MAT DEC 2024
Slide 15: Highnoon Over The Years
Highnoon Over The Years 30.0 26.52 25.0 21.1 Gross Revenue (PKR in billions) 20.0 17.3 15.0 13.8 11.2 9.6 10.0 7.2 5.0 5.7 5.0 3.4 4.0 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Ext. Source : IQVIA MAT DEC 2024
Slide 16: Comparison with Industry Revenue Growth
Comparison with Industry Revenue Growth Industry Highnoon 10-year CAGR: 15% 10-year CAGR: 23% Growth: 4x vs Growth: 8x (Revenue: PKR 247 Bn to (Revenue: PKR 3.4 Bn 1,000 Bn) to 27 Bn) Source : IQVIA MAT DEC 2024
Slide 17: Comparison of growth in USD
Comparison of growth in USD Industry Gross Revenue in USD Highnoon 4.00 3.50 25% 20% 10-year CAGR 3.00 2.50 15% 10% 11.0% 5% 2.00 0% 1.50 -5% 1.00 -10% Highnoon Gross Revenue in USD 0.50 -15% 100.0 30% - -20% 90.0 25% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 80.0 20% Industry Revenue (
Slide 18: Consistent Volumetric Growth
Consistent Volumetric Growth Making Quality Products Accessible to Public at Large INDUSTRY HIGHNOON 215 3,500 3,114 211 210 2,882 3,000 2,776 Counting Units ‘in Mn 210 Counting Units ‘in Bn 206 2,522 205 2,500 2,000 200 1,500 194 195 1,000 190 500 185 - 2021 2022 2023 2024 2021 2022 2023 2024 3-yea
Slide 19: Financial Analysis
* Highnoon Financial . Analysis
Slide 20: Key Performance Indicators (1/2)
Key Performance Indicators (1/2) FY 2024 Net Revenue Profit after tax EPS Market Capitalization Financial PKR 23.2 bn PKR 3.25 bn PKR 61.41 PKR 48.65 bn Highlights GOLY + 19.4% GOLY + 35.4% GOLY + 35.4% GOLY + 82% % of Net Sales 14% Source: Annual Report 2024
Slide 21: Key Performance Indicators (2/2)
Key Performance Indicators (2/2) FY 2024 Financial Assets Equity Dividend Price Earning Ratio Highlights PKR 16.1 bn PKR 11.2 bn PKR 40/ share 14.95 GOLY + 14.5% GOLY + 17% GOLY + 33.3% GOLY + 34% Dividend 400% Source: Annual Report 2024
Slide 22: Scaling New Heights
Scaling New Heights Consolidated Net Revenue 30,000 24,629 25,000 Net Revenue (PKR in millions) 1,434 19,766 23,195 20,000 15,816 15,000 13,001 10,698 10,000 9,048 7,503 4,404 5,071 5,971 5,000 3,696 3,008 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Highnoon Curexa Source: HNL Annu
Slide 23: Strengthening Returns over the Years
Strengthening Returns over the Years 25,000 23,195 20,000 19,424 PKR in Millions 15,816 15,000 13,001 11,930 10,698 10,000 9,254 8,030 6,416 5,121 5,544 5,000 3,589 3,685 3,254 2,539 2,417 2,403 2,076 1,808 1,421 - 2020 2021 2022 2023 2024 Net Revenue Gross Profit Earnings before Interest, Tax & Dep
Slide 24: Driving Margin Growth
Driving Margin Growth Gross Profit, Earning Before Interest, Tax & Depreciation [‘EBITDA’] and Net Profit 60% 51% 51% 49% 50% 48% 48% 40% 30% 23% 24% 19% 20% 19% 20% 15% 14% 13% 14% 12% 10% 0% 2020 2021 2022 2023 2024 Gross Profit Margin EBITDA to Net Revenue Net Profit Margin Source: Annual Report
Slide 25: Adding towards shareholders' wealth
Adding towards shareholders’ wealth Return on Asset, Equity and Capital Employed Return on Asset Return on Equity Return on Capital Employed 43% 41% 36% 37% 32% 31% 32% 31% 29% 26% 25% 24% 21% 19% 20% 2020 2021 2022 2023 2024 Source: Annual Report 2024
Slide 26: Accelerating Value Creation
Accelerating Value Creation Earning per share [‘EPS’], Dividend & Payout Ratio 70.00 70.0% 66.2% 61.41 65.1% 60.00 60.0% 50.00 45.62 50.0% 45.35 43.17 42.1% 40.0 40.00 37.31 40.0% 36.5% 34.7% 30.0 30.00 30.0% 20.0 20.0 20.00 20.0% 15.0 10.00 10.0% - 0.0% 2020 2021 2022 2023 2024 Earning per share Di
Slide 27: Key Performance Indicators – Highnoon Group
Key Performance Indicators – Highnoon Group FY 2024 Net Revenue Profit after tax EPS Equity Consolidated Results PKR 24.63 Bn PKR 3.389 Bn PKR 63.95 PKR 11.8 bn GOLY + 24.6% GOLY + 38.4% GOLY + 20% % of Sales 13.8% Source: Annual Report 2024
Slide 28: Stock Market Presence
* Highnoon Stock i” cat Market a Presence
Slide 29: Capitalizing on a Volatile Market
Capitalizing on a Volatile Market Market Capitalization 60,000 48,650 50,000 (MPS @ PKR 918) 40,000 82% PKR in Millions 30,000 26,735 23,874 22,617 (MPS* @ PKR 509) 20,734 20,000 10,000 - 2020 2021 2022 2023 2024 *MPS = Market Price per share Source: Annual Report 2024 & Pakistan Stock Exchange
Slide 30: Market Premium over Breakup Value
Market Premium over Breakup Value 1,000 918 900 800 706 700 627 599 Amount in PKR 600 540 505 500 469 476 400 362 323 4.3x 300 4.6x 4.1x 212 178 181 200 130 151 3x 2.7x 100 - 2020 2021 2022 2023 2024 Break-up value per share Market price per share Market Premium Source: Annual Report 2024
Slide 31: Valuation and Yields
Valuation and Yields EPS, Price Earnings Ratio and Dividend Yield 61.41 45.35 45.62 43.17 37.31 14.95 16.05 14.52 11.13 9.36 4.36 2.50 3.19 3.70 3.96 2020 2021 2022 2023 2024 Earnings Per Share (after tax) Price Earning Ratio Dividend Yield Source: Annual Report 2024
Slide 32: Free Float
Free Float Industry Highnoon Average Pharmaceutical Free Float of industry is 10% vs Free Float is 40% Highnoon has outpaced the industry by 4 times, having a healthy free float is strong indicator of liquidity and market accessibility of the share
Slide 33: Strategic Directions & Operations
Strategic Directions & Operations
Slide 34: Strategic Direction
Strategic Direction Consolidating Strengthening Growth in growth in position in International Chronic Care Primary Care Market Share * HNL Annual Report 2024
Slide 35: Consolidating Growth in Chronic Disease Segments
Consolidating Growth in Chronic Disease Segments • Highnoon is recognized as a leader in Cardiology, Diabetes, and Respiratory care. • Our robust product range addresses the most prevalent and challenging long term health conditions, delivering high quality, evidence-based solutions. • Highnoon is d
Slide 36: Strengthening Position in Primary Care
Strengthening Position in Primary Care • Highnoon provides a wide spectrum of acute treatment options, meeting the urgent healthcare needs of patients in primary care settings. • We are strategically working to broaden our portfolio and make essential treatments more accessible to patients across Pa
Slide 37: Portfolio Mix
Portfolio Mix ABETES DI AN TI- I 7% NF Y EC OR 25% Group Net Revenue TIV RAT 17% ES PKR 24.63Bn* RESPI CHRONIC US$ 88.4 Mn ACUTE GOLY 24.6 % 23% D ALI 22% OO M L E B NT S+ AR CV 3% Y 3% Others Musculo skeletal *Source: Annual Report 2024
Slide 38: Leading Brands
Leading Brands PKR 1.8 Bn 1.9 Bn 1.5 Bn 1.3 Bn 1.3 Bn (USD 6.6Mn) (USD 6.7 Mn) (USD 5.3 Mn) (USD 4.7 Mn) (USD 4.7 Mn) TM Forge Family® Combivair® (Ebastine) Kestine (Budesonide + FormoterolFumarate) Tagipmet (Sitagliptin + MetforminHCI) Cyrocin® (CiprofloxacinHCI) (Esomeprazole) 1.2 Bn 1.1 Bn 1.1 Bn
Slide 39: Expanding Healthcare
Expanding Healthcare 17 New Product Launches 11 Chronic 6 Acute Healthcare Launches Healthcare Launches
Slide 40: Expanding Global Footprint
Expanding Global Footprint • Highnoon has a foothold in international markets, reflecting our commitment to global standards. • We are actively pursuing entry into new markets by offering effective, innovative, and reliable healthcare solutions tailored to diverse needs. • We are leveraging world cl
Slide 41: Exports
Exports • 220 Products • 100 Products in pipeline Afghanistan Azerbaijan Cambodia Ghana Kenya Iraq Kyrgyzstan Sri Lanka Syria Mauritius Mozambique Macau Sudan Tajikistan Tanzania Uzbekistan Vietnam Yemen
Slide 42: Future Outlook
Future Outlook
Slide 43: Highnoon Future Outlook
Highnoon Future Outlook Sustainability Diversification Invest in AI, digital Focus on biologics, tools, and explore Leadership & novel drug delivery Value smart Growth systems and other Creation manufacturing to cutting-edge optimize supply Sustain and technologies to stay Deliver sustainable chains
Slide 44: DigiPharma Initiative with IFC
DigiPharma Initiative with Highnoon has taken the lead in collaborating with International Financial Corporation [‘IFC’] in an initiative that focuses on leveraging digital technologies to streamline processes, improve efficiency, and enhance overall operations within the company Gap Digital Identif
Slide 45: Sustainability and ESG
Sustainability and ESG Benchmarking Reporting Based on readiness Sustainability Readiness assessment, a Strategic reporting in Assessment benchmarking Implementation accordance with IFRS report with industry Sustainability best practices and Implementation of Standards Highnoon is end to end value s
Slide 46: Enriching
Enriching ‘Enriching Life' is more than a theme; itis the essence of our purpose, driving us to create solutions that improve health, elevate quality of life and inspire a brighter future. Every initiative and partnership we embark onis rooted in this mission, ensuring that our impact reaches far be