Ajanta Pharma Limited · NSE:AJANTPHARM

Ajanta Pharma — Q3 FY2016 Earnings Presentation

36 slides from Ajanta Pharma's earnings presentation, Feb 1, 2016

  1. Slide 1: Investor Presentation Q3FY16

    Investor Presentation Q3FY16 1st February 2016

  2. Slide 2: Content

    Content 1 India Business 2 Emerging Markets 3 Regulated Markets 4 Infrastructure 5 Financial Highlights 6 Corporate 1st February 2016 2 of 44

  3. Slide 3: India Business

    INDIA BUSINESS 1st February 2016 3 of 44

  4. Slide 4: Therapy Focus

    Therapy Focus Ophthalmology Dermatology Cardiology Pain Management 1st February 2016 Total MR Strength 3,000+ 4 of 44

  5. Slide 5: India Sales – Q3 FY16

    India Sales – Q3 FY ‘16 29% 60 53 50 16% 41 40 34 32 31 -4% 29 30 23 45% 20 Rs. cr. 10 10 7 6 -75% 0 Ophthalmology Dermatology Cardiology Pain Mgt. Institution Q3 FY '15 Q3 FY '16  Total India Sales - Rs. 134 cr. (Q3 FY ‘15 – Rs. 132 cr.)  India Branded Growth 17% (excluding Institution)  Total I

  6. Slide 6: India Sales – 9M FY16

    India Sales – 9M FY ‘16 28% 180 160 155 15% 140 1% 121 120 103 100 89 90 91 80 60 50% 45 40 31 29 -35% Rs. cr. 21 20 0 Ophthalmology Dermatology Cardiology Pain Mgt. Institution 9M FY '15 9M FY '16  Total India Sales - Rs. 408 cr. (9M FY ‘15 – Rs. 366 cr.)  India Branded Growth - 18% (excluding In

  7. Slide 7: Within Segments Way Ahead

    Within Segments Way Ahead 40% 37% 35% 35% 32% 30% 28% 25% 20% 18% 15% 15% 14% 14% 14% 11% 10% 5% 0% Pharma Market Dermatology Cardiology Ophthalmology Pain Mgt. IPM Ajanta Pharma 1st February 2016 Source: IMS, MAT December ‘15 7 of 44

  8. Slide 8: Faster Than Industry - IPM

    Faster Than Industry - IPM 40% 38% 36% 35% 30% 29% 28% 26% 25% 20% 15% 15% 15% 12% 10% 10% 10% 5% 0% Mar '12 Mar '13 Mar '14 Mar '15 Dec '15 IPM Ajanta Pharma 1st February 2016 IPM = Indian Pharmaceutical Market, MAT Figures Source: IMS 8 of 44

  9. Slide 9: IPM - Rankings

    IPM - Rankings Segment IMS MAT IMS MAT IMS MAT Dec ‘15 Dec ‘14 Mar ‘05 Ophthalmology 5 5 28 Dermatology 14 14 98 Cardiology 20 24 38 Pain Mgt. 45 49 NA Ajanta Pharma 33 37 88 1st February 2016 IPM = Indian Pharma Market Source: IMS, MAT December ‘15 9 of 44

  10. Slide 10: Emerging Markets

    EMERGING MARKETS 1st February 2016 10 of 44

  11. Slide 11: Global Presence

    Global Presence USA West Asia CIS (3 Countries) (6 Countries) South East Asia Latin (3 Countries) America (4 Countries) India Africa (19 Countries)  Presence in 35+ countries 1st February 2016  Country specific brand portfolio enabling growth 11 of 44

  12. Slide 12: EM Consolidated Revenue – Q3 FY16

    EM Consolidated Revenue – Q3 FY ‘16 250 40% 200 196 150 140 4% 124 129 Rs. cr. 100 50 4 3 -31% 0 Africa Asia Latam Q3 FY '15 Q3 FY '16  Emerging Market Revenue – Rs. 328 cr. (Q3 FY15 – Rs. 269 cr.) 1st February 2016  Emerging Market Growth 22% 12 of 44

  13. Slide 13: EM Consolidated Revenue – 9M FY16

    EM Consolidated Revenue – 9M FY ‘16 600 32% 518 500 392 400 9% Rs. cr. 342 313 300 200 100 -18% 10 8 0 Africa Asia Latam 9M FY '15 9M FY '16 1st February 2016  Emerging Market Revenue – Rs. 868 cr. (9M FY15 – Rs. 715 cr.)  Emerging Market Growth 21% 13 of 44

  14. Slide 14: Building Brands

    Building Brands Brands Under Major Segments Region Registered Registration Africa 1,109 1,335 Antibiotic, Anti-Malaria, Cardiac, Gynac Asia 289 472 Antibiotic, Derma, Pain, OTC, Ophthal, Cardiac, GI Latam 25 10 Ophthal, MED, GI Total 1,423 1,817 1st February 2016 14 of 44

  15. Slide 15: Regulated Markets

    REGULATED MARKETS 1st February 2016 15 of 44

  16. Slide 16: Regulated Markets - USA

    Regulated Markets - USA ANDA status  Approved – 7, Tentative approval - 2  Under approval – 17  Filing target every year – 8 to 12 Sales & Marketing  4 Products launched – gaining market share  Own front end i.e., Sales & Marketing team Sales (Rs. cr.) FY ‘16 FY ‘15 Growth Q3 4.25 0.75 467% 9M

  17. Slide 17: Infrastructure

    INFRASTRUCTURE 1st February 2016 17 of 44

  18. Slide 18: Manufacturing

    Manufacturing Formulation Manufacturing  3 existing facilities in Aurangabad, Maharashtra (1 USFDA, UKMHRA, WHO Pre-Q, approved)  1 Facility at Mauritius  Regulatory filing batches commenced at Dahej, Gujrat  Work on Guwahati, Assam facility commenced, investing Rs. 300 cr. API Manufacturing  1

  19. Slide 19: R&D – The Catalyst For Growth

    R&D – The Catalyst For Growth R&D spend As % of Operating Income (Excluding Capex) 6.0% 5.0% 4.5%  Experienced Team of 600+ scientists  Q3 spend (excl. capex) at Rs. 26 cr., 9M at Rs. 70 cr. 1st February 2016 FY '14 FY '15 FY '16  Investing Rs. 100 cr. in Capex over next 24 mths projected 19 of 4

  20. Slide 20: Financial Highlights

    FINANCIAL HIGHLIGHTS 1st February 2016 20 of 44

  21. Slide 21: Consolidated P&L – Q3 FY16

    Consolidated P&L – Q3 FY ‘16 Q3 FY ‘16 Q3 FY ‘15 Exports Rs. 332 cr. Rs. 269 cr. 23% (70% to Revenue) (66% to Revenue) Domestic Rs. 134 cr. Rs. 132 cr. 1% (28% to Revenue) (32% to Revenue) Total Rs. 473 cr. Rs. 408 cr. 16% EBITDA Rs. 164 cr. Rs. 146 cr. (35% to Revenue) (36% to Revenue) 12% PBT Rs.

  22. Slide 22: Consolidated P&L Details – Q3 FY16

    Consolidated P&L DETAILS – Q3 FY ‘16 (Rs. cr.) Particulars Q3 FY ‘16 Q3 FY ‘15 FY ‘15 Income from Operations 473 408 1,481 Materials consumed 115 24% 101 25% 365 Employee benefits exp. 65 14% 52 13% 201 Finance costs 2 0% 1 0% 6 Other expenditure 129 27% 111 27% 410 Dep. & amortization 12 2% 13 3% 5

  23. Slide 23: Consolidated P&L – 9M FY16

    Consolidated P&L– 9M FY ‘16 9M FY ‘16 9M FY ‘15 Exports Rs. 877 cr. Rs. 716 cr. 22% (67% to Revenue) (65% to Revenue) Domestic Rs. 408 cr. Rs. 366 cr. 12% (31% to Revenue) (33% to Revenue) Total Rs. 1,302 cr. Rs. 1,102 cr. 18% EBITDA Rs. 440 cr. Rs. 372 cr. (34% to Revenue) (34% to Revenue) 18% PBT

  24. Slide 24: Consolidated P&L Details – 9M FY16

    Consolidated P&L Details – 9M FY ‘16 (Rs. cr.) Particulars 9M FY ‘16 9M FY ‘15 FY ‘15 Income from Operations 1,302 1,101 1,481 Materials consumed 318 24% 276 26% 365 Employee benefits exp. 188 14% 146 13% 201 Finance costs 4 0% 4 0% 6 Other expenditure 355 27% 308 28% 410 Dep. & amortization 33 3% 3

  25. Slide 25: Consolidated Cost Components – Q3 & 9M FY16

    Consolidated Cost Components – Q3 & 9M FY ‘16 24% 23% 22% 21% 9% 9% 9% 11% 0% 0% 0% 0% 24% 22% 27% 28% 3% 3% 3% 3% 14% 13% 14% 13% 26% 27% 24% 25% Q3 FY '16 Q3 FY '15 9M FY '16 9M FY '15 1st February 2016 Material Cost Staff Cost Depreciation Other Cost Material Cost Staff Cost Depreciation Other Co

  26. Slide 26: Consistent Track Record

    Consistent Track Record Profit After Tax Consolidated Net Sales (Rs. cr.) (Rs. cr.) 350 1600 1453 310 1400 300 1178 1200 31% CAGR 250 234 57% CAGR 1000 920 200 800 665 150 600 497 112 100 77 400 51 200 50 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 1st February 2016 26 of 44

  27. Slide 27: Consistent Track Record

    Consistent Track Record EBITDA Margin 34 21 31 Net Margin (%) (%) 19 24 21 18 11 12 10 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 RONW 47 (%) 43 ROCE 52 (%) 47 32 38 29 25 23 18 1st February 2016 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 27 of 44

  28. Slide 28: Key Financial Indicators

    Key Financial Indicators Rs. 9M FY ‘16 Particulars FY ‘11 FY ‘12 FY ‘13 FY ‘14 FY ‘15 (9M FY ‘15) EPS 6 9 13 27 35 34 (27) Cash EPS 9 12 17 32 41 37 (31) EBITDA per share 11 17 26 43 59 50 (42) EBITDA margin 20% 22% 24% 31% 35% 34% (34%) PAT margin 10% 11% 12% 19% 21% 23% (21%) R & D revenue Exp. (R

  29. Slide 29: Key Financial Indicators

    Key Financial Indicators H1 FY ‘16 Particulars FY ‘11 FY ‘12 FY ‘13 FY ‘14 FY ‘15 (H1 FY ‘15) Book value per share (Rs.) 26 34 45 67 96 117 (77) Dividend/share (Rs.) (FV Rs.2) 1.00 1.50 2.50 4.00 6.00 N.A. (N.A.) RONW 25% 29% 32% 47% 43% 43% (42%) ROCE 18% 23% 38% 47% 52% 47% (53%) Dividend payout 1

  30. Slide 30: Key Financial Indicators

    Key Financial Indicators H1 FY ‘16 Particulars FY ‘11 FY ‘12 FY ‘13 FY ‘14 FY ‘15 (H1 FY ‘15) Long term debt / Equity 0.36 0.35 0.19 0.12 0.06 0.06 (0.09) Total debt/equity 0.83 0.67 0.32 0.22 0.09 0.06 (0.18) Receivable days 76 77 60 63 65 71 (67) Inventory days 83 92 59 48 40 37 (45) Payable days

  31. Slide 31: Corporate

    CORPORATE 1st February 2016 31 of 44

  32. Slide 32: Among Fastest Growing Companies In India

    Among Fastest Growing Companies In India 1st February 2016 32 of 44

  33. Slide 33: Fastest Wealth Creators In Years

    Fastest Wealth Creators In 5 Years Wealth Creation study of Motilal Oswal The Fastest Wealth Creators 2010-15 Price Rank Company CAGR 1 Ajanta Pharma 119% 2 Symphony 108% 3 Eicher Motors 90% 4 P I Industries 85% 5 Page Industries 77% 6 Wockhardt 68% 7 Bajaj Finance 68% 8 GRUH Finance 62% 9 Blue Dart

  34. Slide 34: CSR Activities

    CSR Activities Group marriage activity Manutai School Gathering Plastic Surgery Camp 1st February 2016 Microscope Machine Eye camp at SDH Parali Donated at Kej 34 of 44

  35. Slide 35: Disclaimer

    Disclaimer This presentation may include certain ‘forward looking statements’, based on current expectations, forecasts and assumptions within the meaning of applicable laws and regulations. They are subject to risks and uncertainties which could cause actual outcomes and results to differ materiall

  36. Slide 36: Thank You!

    For updates and company information please visit our website: www.ajantapharma.com For specific queries, contact: Rajeev Agarwal rajeev.agarwal@ajantapharma.com THANK YOU! 022-66061377 Ajanta Pharma Limited Ajanta House, Charkop, Kandivli (W), Mumbai 400 067 CIN No. - L24230MH1979PLC022059 1st Febru

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