Marksans Pharma Limited · NSE:MARKSANS
Marksans Pharma — Q3 FY2021 Earnings Presentation
41 slides from Marksans Pharma's earnings presentation, Feb 8, 2021
Slide 1: Investor Presentation Q3 & 9MFY21
Investor Presentation Q3 & 9 MFY2 1 | 8 t h F eb rua ry 2 0 2 1 BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2019 – Marksans Pharma Limited, All Rights Reser ved.
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: Content
Content 1 Q3 Highlights 2 Company Overview 3 Business Opportunity by market size 4 Key Focus Areas in FY21 5 5 -years Financial Highlights 6 Leadership Team 3
Slide 4: Management Commentary
Management Commentary Mark Saldanha M A N AG IN G DIR E C TOR A N D C E O “Igrowth. am pleased to share that we delivered another outstanding quarter led by all round We maintained our momentum with a 24.6% revenue growth and operational improvement with a record EBITDA of Rs. 91.1 crore. We remain
Slide 5: Q3FY21 Performance Review
® Marksans Pharma Ltd. Q3FY21 Performance Review
Slide 6: Financial Highlights
Financial Highlights • Q3FY21 Particulars (₹ cr.) Q3FY21 Q2FY21 Q3FY20 9MFY21 9MFY20 • Operating Revenue was ₹ 358.4 cr.; Y-o-Y growth Operating Revenue 358.4 356.5 287.6 1,046.0 798.9 of 24.6% Gross Profit 216.9 192.8 147.5 601.3 401.8 • EBITDA was ₹ 91.1 cr.; Y-o-Y growth of 92.6% Gross Profit Mar
Slide 7: Strong growth in Revenue & Margins
Strong growth in Revenue & Margins 60.5% Operating Revenue Gross Profit 216.9 (₹ Cr.) & Gross Profit Margin 147.5 358.4 287.6 (₹ Cr.) 51.3% Q3FY20 Q3FY21 Q3FY20 Q3FY21 25.4% 16.6% EBITDA PAT & & EBITDA PAT Margin 10.3% Margin (₹ Cr.) 16.4% 58.9 (₹ Cr.) 91.1 29.6 47.3 Q3FY20 Q3FY21 Q3FY20 Q3FY21 7
Slide 8: Improving Financial Ratios
Improving Financial Ratios ROCE ROE 31.6% 24.5% 17.2% 13.9% Q3FY20 Q3FY21 Q3FY20 Q3FY21 48.7% Net Debt Material Cost 39.5% -(0.1) to EBITDA (x) ₹ cr. and as 141.4 -(0.6) % of Revenue 140.1 Q3FY20 Q3FY21 Q3FY20 Q3FY21 8
Slide 9: Consistent Performance over Quarters
Consistent Performance over Quarters Operating Revenue Gross Profit (₹ cr.) & Gross Profit Margin % (₹ cr.) 60.5% 55.9% 57.9% 54.1% 335.3 331.2 356.5 358.4 51.3% 216.9 287.6 187.5 191.6 192.8 147.5 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 EBITDA (₹ cr.) & EBITDA Margin %
Slide 10: Resulting in improving metrices
Resulting in improving metrices ROCE ROE 28.9% 31.6% 24.5% 24.2% 27.0% 20.8% 22.8% 18.6% 17.2% 13.9% Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Net Debt to EBIDTA (x) Material Cost (₹ cr.) and as % of Revenue 48.7% 45.9% 44.1% 42.1% -0.1 39.5% 163.7 -0.4 -0.4 147.8 140.1 1
Slide 11: Company Overview
® Marksans Pharma Ltd. Company Overview
Slide 12: Company Structure - Parents & Subsidiary
Company Structure - Parents & Subsidiary Marksans Pharma (UK) Limited Distribution of quality Marksans Holdings Limited generic pharma Manufacturer of range of Only OTC 162+ OTC & Rx products; product licenses; Regional sales Manufacturer of 50+ products portfolio Manufacturer of development across
Slide 13: Business Overview
REVENUE MIX - BUSINESS MODEL - Business Overview OTC Rx 45% 95% 55% FY20 of revenues comes from regulated markets Product Portfolio FY20 (₹ Cr.) Pain Management 350 Anti-Daibetic 209 Forward- Cardiovascular System(CVS) 164 GEOGRAPHIC MIX - integrated Cough & Cold 149 RoW business model Gastrointesti
Slide 14: Focussed Business Model
Focussed Business Model Focus on Forward Wider Product Regulated Markets Integrated Basket Business Model • Marksans commenced business with • Marksans commenced operations as a • Marksans commenced its journey with CRAMS directed at the UK and Australian formulations manufacturing enterprise produc
Slide 15: Forward Integrated Business Model
Forward Integrated Business Model R&D and Manufacturing Supply chain and distribution End Consumers AUSTRALIA Retail chains UK Goa, India EUROPE NORTH Pharmacy Stores AMERICA Southport, UK CANADA ROW EXPORT Hospitals Farmingdale, USA 15
Slide 16: Long-term Strategy
® Marksans Pharma Ltd. Long-term Strategy
Slide 17: Strategic Focus on Regulated Markets
Strategic Focus on Regulated Markets USA Global Footprint Regulatory Approvals Marksans Pharma entered into strategic These markets are empowered with tie-ups and acquired key players in regulatory approvals which allows the major markets to expand its global company to sell its products without foo
Slide 18: Niche Formulations with few Competitors
Niche Formulations with few Competitors DIFFERENTIATED OFFERINGS LIMITED COMPETITION HIGH BARRIERS TO ENTRY Focused on softgel capsules with a view to Given the challenges in preparing Softgel High capex requirements and operational build a differentiated set of offerings in the formulations plus ot
Slide 19: Business & Opportunity by Market Size
Business & Opportunity by Market Size 19
Slide 20: UK Business & Opportunity by market size
UK Business & Opportunity by market size OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E OUTLO OK The UK & EU pharmaceutical market is • One of the top 5 Indian pharma • Company has 50+ products in the pipeline companies in the UK. in different stages to cater to UK market. estimated to grow fro
Slide 21: Expansion Strategy for UK
Expansion Strategy for UK • Wide UK customer base and 100% reach within the distribution channel. REVENUE FY20 • Broad and diversified range of product portfolio with well recognized brands. • Captured a large share of OTC and generic markets. ORGANIC GROWTH • Working on receiving USFDA approval for
Slide 22: US Business & Opportunity by market size
US Business & Opportunity by market size OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E OUTLO OK The US holds over 30-40% of the global • In June 2015, Marksans acquired Time-Cap • Strengthen company’s US operations in Labs which enabled Marksans to expand the coming years pharmaceutical market
Slide 23: Expansion Strategy for US
Expansion Strategy for US • 50+ products in various therapy area segments REVENUE FY20 • Positioned in the niche soft gel category • Strong distribution channel marketing for both OTC and RX products • 23 ANDAs filled till date • Expanding presence in other North American region ORGANIC GROWTH • Inc
Slide 24: Australia Region Business & Opportunity by market size
Australia Region Business & Opportunity by market size OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E OUTLO OK Australia’s pharmaceutical market is set to • Marksans carries out business operations • Australia and New Zealand will continue to in Australia and New Zealand through its remain focu
Slide 25: Emerging Market Business & Opportunity by market size
Emerging Market Business & Opportunity by market size OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E OUTLO OK ROW includes markets of South East Asia, • Presence in emerging markets such as • In process of launching new products and South East Asia, MENA, LATAM, CIS and obtaining product regist
Slide 26: Manufacturing Capabilities
Manufacturing Capabilities Goa, India • Manufactures oral solid tablets, C A PA C I T Y A C C R E D I TAT I O N S and soft and hard gelatin capsules 2.4 bn softgel and hard gelatin capsules per annum • One of the biggest manufacturing facility in Asia 6 bn solid tablets per annum Southport, UK • Man
Slide 27: R&D and Product Launches
R&D and Product RECENT KEY PRODUCT L AUNCHES Launches Highlights Brand Composition Therapy Segment Market IMURAN (Q3FY21) AZATHIOPRINE 50 MG Immunosuppressant UK TOFRANIL (Q3FY21) IMIPRAMINE 25 MG Central Nervous System UK LORATIDINE SGC CLARITIN Antihisyamine Australia (Q3FY21) R&D Expenditure (₹ i
Slide 28: Key Focus Area
® Marksans Pharma Ltd. Key Focus Area
Slide 29: Key Focus Areas
Key Focus Areas S T R AT E G Y G RO W T H L E V E R S Expansion The company generates ~95% of its revenue from regulated markets and expects to 1 Expansion of current product portfolio in regulated market further expand in these markets through continued push of existing products in regulated and ot
Slide 30: 5 Years Performance Review
5 Years Performance Review 30
Slide 31: Financial Highlights
Financial Highlights Operating Revenue (₹ cr.) Gross Profit (₹ cr.) & Gross Profit Margin 57.5% 50.2% 52.0% 40.2% 42.7% 1000.1 1134.2 1046.0 589.3 601.3 912.7 502.1 767.2 389.6 308.4 FY17 FY18 FY19 FY20 9MFY21 FY17 FY18 FY19 FY20 9MFY21 EBITDA (₹ cr.) & EBITDA Margin PAT (₹ cr.) & PAT Margin 23.3% 1
Slide 32: Financial Ratios
Financial Ratios ROE ROCE 24.5% 31.6% 18.6% 24.5% 2.6% 14.6% 19.1% 3.2% 10.4% 7.5% FY17 FY18 FY19 FY20 9MFY21 FY17 FY18 FY19 FY20 9MFY21 Net Debt to EBITDA (X) Material Cost and as % of Revenue 59.8% 57.3% 49.8% 48.0% 42.5% 1.9 1.0 523.1 498.0 544.9 0.5 458.8 444.7 -0.6 -0.4 FY17 FY18 FY19 FY20 9MFY
Slide 33: Segmental Mix
Segmental Mix Therapeutic Segment-Wise YoY Segment Revenue YoY 100.0% 6.1% 6.8% 10.2% 11.7% 8.2% 100.0% 90.0% 5.0% 7.5% 8.3% 90.0% 8.6% 8.6% 80.0% 16.3% 80.0% 12.0% 8.8% 20.6% 44.1% 18.4% 51.0% 55.2% 58.0% 54.7% 70.0% 4.9% 70.0% 5.2% 11.7% 14.1% 6.3% 6.7% 60.0% 60.0% 14.2% 12.4% 13.8% 13.1% 50.0% 50
Slide 34: Global Reach Enables Reduction in Country Risk
Global Reach REVENUE MIX Enables Reduction in 5.6% 4.3% 3.0% 6.0% 4.2% 10.9% Country Risk 11.9% 13.6% 11.9% 12.4% 36.1% 40.7% 38.5% 41.0% Company’s business 45.1% is classified under 4 heads: 1 North America/ US generics 46.4% 45.5% 45.0% 37.0% 41.1% 2 Europe/UK generics 3 Australia and New Zealand
Slide 35: Leadership Team
Leadership Team MR. MARK SALDANHA M R . VA R D D H M A N J A I N M R . S AT H I S H K U M A R M R . D AV I D M O H A M M E D MR. JITENDRA M SHARMA Managing Director & CEO W h o l e - T i m e D i r e c t o r. MD – Marksans Pharma UK Ltd. M D - Pharmaceuticals Australasia pty Chief Financial Officer M
Slide 36: Investment Rationale
Investment Rationale Widening Amongst Largest Key Markets Product Portfolio Pharma Market Company is widening its products portfolio The US, the UK and Australia are the key Marksans is among a handful of Indian in the complex and high-margin generics Marksans’ markets with all of them being players
Slide 37: Investment Rationale
Investment Rationale Sustainable business model with strategic focus on Forward integrated business model with presence 1 regulated markets with markets of USA, UK, Australia and New Zealand contributing to c. 96% of total 5 across the pharma value chain including in-house R&D centers, owned and out
Slide 38: ESG Philosophy
ESG Philosophy ENVIRONMENTAL SOCIAL GOVERNANCE • Efficient use of resources to minimize • Company is actively contributing to • Committed to good corporate the waster generation. the social and economic governance to achieve long term development and build a better corporate goals and to enhance • P
Slide 39: ESG at Marksans
ESG at Marksans HELPING WOMEN & Marksans along with Ministry of Health, Government of Goa is helping in Women and child CHILD DEVELOPMENT development, professionalizing Anganwadis and national nutrition mission in Goa. PROVIDE FIRE Company has provided fire extinguishing equipment to the fire depart
Slide 40: Corporate Governance Philosophy
Corporate Governance Philosophy We at Marksans Pharma Ltd adhere to following principles : 1 Conducting Business in Ethical, Transparent and Accountable manner. 2 Producing goods which have a sustainable life cycle. 3 Adherence to ethical working standards to ensure the wellbeing of all employee. 4
Slide 41: Contact Us
Contact Us I N V E S TO R R E L AT I O N S T E A M AT M A R K S A N S P H A R M A C O R P O R AT E O F FI C E Jitendra Sharma Ravi Udeshi 11th Floor Grandeur, Off Veera Desai Road, (CFO) (Christensen Investor Relations) Opp Gundecha Symphony, Andheri (W), Mumbai – 400 053, Maharashtra - India Marksa