60 slides from Sun Pharmaceutical Industries's investor presentation, Apr 28, 2023
Slide 1: Exchange filing cover letter
Sun Pharmaceutical Industries Limited SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063, India Tel.: (91-22) 4324 4324 Fax.: (91-22) 4324 4343 CIN: L24230GJ1993PLC019050 www.sunpharma.com 28 April 2023 National Stock Exchange of India Limited, BSE Limited, Exchange Pla
Slide 2: Creating Lasting Value - Investor Presentation April 2023
Creating Lasting Value Investor Presentation - April 2023 NSE:SUNPHARMA | BSE:524715 | Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM
Slide 3: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “pl
Slide 4: Sun Pharma agenda
Sun Pharma 1 Revenue composition and growth highlights 2 Business operations 3 R&D & Manufacturing 4 Corporate Governance 5 Key Financials 6 Company history and key deals 7 Focus areas 3
Slide 5: Sun Pharma at a glance
Sun Pharma at a glance Leading global specialty generic company* Global presence Operates in over 100 countries Diversified business Specialty products, branded generics, generics & APIs Global Specialty Focused therapy approach, commercial infrastructure in key markets US Generics 9th largest in US
Slide 6: A diversified revenue base
A diversified revenue base Emerging Markets Rest of World 18% (RoW)# 14% API & Others 5% FY22 Sales India Branded Rs 384 Bn Formulations 33% US Formulations 30% # Includes Western Europe, Canada, Japan, Australia & New Zealand, Israel and other markets. 5
Slide 7: Impressive track record of growth
Impressive track record of growth (All Figures in Rs Bn) CAGR for FY07-FY22 384 101 104 77 70 303 Adjusted Sales 33 EBITDA 27 Net Profit 80 CAGR CAGR CAGR 21% 7 20% 8 16% 21 FY07 FY12 FY17 FY22 FY07 FY12 FY17 FY22 FY07 FY12 FY17 FY22 90 75 32 29 71 Adjusted 34 EPS Operating Free Cash 11 Cash Flow Fl
Slide 8: Strong profitability and return ratios
Strong profitability and return ratios Adjusted Net Profit Gross Margin # EBITDA Margin Margin 26.9% 25.3% 73.9% 73.1% 20.0% 72.6% 71.4% 21.7% 21.3% 17.8% 13.5% 12.5% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 ROCE ROE Market Cap (USD Bn) 29.5 16.4% 15.0% 13.5% 12.5% 11.8% 19.3 11.0
Slide 9: Best-in-class profitability
Best-in-class profitability Gross Margin EBITDA Margin Adjusted Net Profit Margin 74% 73% 73% 71% 27% 65% 25% 65% 64% 63% 22% 22% 21% 20% 19% 18% 20% 18% 14% 13% 14% 13% 11% 12% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Gross margin= (Net Sales – Material Cost) / Net Sales * 100 Su
Slide 10: Business operations
9 SUN PHARMA Business operations
Slide 11: Snapshot of business operations
Snapshot of business operations US Formulations India Branded Generics Presence in Specialty & Generics segments with more Largest pharma company in India by sales than 570 approved products Ranked No.1 with 12 classes of prescribers 9th largest generics company in US* with a strong Leadin
Slide 12: Driving sustainable long term growth
Driving sustainable long term growth • Achieve critical mass in key markets • Clear and actionable targets on • Increase contribution of specialty sustainability and complex products • Embed sustainability practices in • Future investments directed businesses towards differentiated products profitab
Slide 13: Global Specialty
9 SUN PHARMA Global Specialty Sivumya & Cequa &: .Odomzo” —s BromS ITE’ tdrakizumab-asmn 2* (sonidegib) 3s (yynfenac ophthalmic solution) 0.075% ijcton 100mm (cycasporineophthalnc solution) 0.09% a LEVULAN’ BLU- -U ABSORICA ie Winlev wyons q KERASTICK + fryer @[ pros” (abiraterone acetate) (aminolev
Slide 14: Global Specialty highlights
Global Specialty highlights Building a Global Specialty business in select therapy areas Marketed products in Dermatology, Ophthalmology and Onco Focused approach Dermatology Key growth driver 13.1% of sales in FY22 vs 7.3% of sales in FY18 Wide portfolio Approx. 25 marketed products US market prese
Slide 15: Global Specialty portfolio
Global Specialty portfolio For treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy • Long term clinical data shows that the significant response rate seen in 52 & 64 weeks were maintained over five years1 • Ongoing Phase-3 trials for P
Slide 16: Global Specialty portfolio
Global Specialty portfolio Treatment of adult patients with locally advanced basal cell carcinoma (BCC) that has recurred following surgery or radiation therapy, or those who are not candidates for surgery or radiation therapy. • ODOMZO was shown to shrink laBCC in almost 6 out of 10 patients (56%)
Slide 17: Global Specialty portfolio
Global Specialty portfolio In combination with methylprednisolone for the treatment of patients with metastatic castration resistant prostate cancer (CRPC). • YONSA® was shown in clinical studies to be an effective form of abiraterone acetate, and can be taken with or without food, in combination wi
Slide 18: Specialty pipeline
Specialty pipeline Route of Mechanism of Asset Indication Preclinical Phase 1 Phase 2 Phase 3 Registration administration action CTP-543 Alopecia Oral JAK Inhibitor (deuruxolitinib) Areata Ilumya Psoriatic IL-23 Injection (tildrakizumab) Arthritis Antagonist Psoriasis, Selective SIPR1 SCD-044 Atopic
Slide 19: US Formulations
US Formulations 30% of FY22 Revenues 18
Slide 20: US highlights
US highlights Significant Specialty presence/9th largest in US Generics* Dermatology segment Ranked 2nd by prescriptions## in the US dermatology market Wide basket of 613 ANDAs & 67 NDAs filed and 517 ANDAs & 54 Comprehensive portfolio** NDAs approved across multiple therapies Robust pipeline** 96 A
Slide 21: Milestones in US formulations
Milestones in US formulations • Acquired Concert Pharma giving access to deuruxolitinib for Alopecia Areata FY23 • Launched Sezaby in the US FY22 Launched Winlevi in the US Presented long term clinical data for Ilumya & other clinical insights for Odomzo & FY21 Levulan at American Academy of Dermato
Slide 22: US formulations: revenue progression
US formulations: revenue progression Sales in Rs Bn 114 107 105 101 87 FY18 FY19 FY20 FY21 FY22 21
Slide 23: ANDA & NDA pipeline
ANDA & NDA pipeline ANDAs filed and approved (cumulative) NDA filed and approved (cumulative) 605 613 581 595 561 571 501 512 517 483 453 422 67 67 64 59 60 55 55 54 54 52 42 39 FY18 FY19 FY20 FY21 FY22 Q3FY23 FY18 FY19 FY20 FY21 FY22 Q3FY23 Cumulative products filed Cumulative products filed Cumula
Slide 24: India Branded Formulations
India Branded Formulations 33% of FY22 Revenues 23
Slide 25: India highlights
India highlights Largest Pharma company in India Market position** Largest Pharma company in India with 8.5% market share Prescription ranking## Ranked No. 1 by prescriptions with 12 classes of prescribers Chronic segment Market leader in the chronic segment Acute segment Strong positioning in the a
Slide 26: Largest Pharma company in India
Largest Pharma company in India Market Share Formulation sales in India as of 12 months ended Dec 2022 (Rs mn) 152,980 Sun Pharma 8.5% 112,990 Abbott + Abbott HC + Novo 6.3% 89,530 Mankind 5.0% 87,600 Cipla 4.9% 71,330 Zydus 3.9% 63,970 Lupin 3.5% 63,870 Torrent 3.5% 62,990 Alkem + Cachet + Indchemi
Slide 27: India: revenue progression
India: revenue progression Sales in Rs Bn Therapeutic breadth** Others Opthalmology 2% 4% Cardiology 128 Urology, 3% 18% One-time Gynaecology, 4% impact of Vitamins / change in 103 Minerals / distribution 97 Nutrients, 5% 80 Respiratory 5% 73 Market Share Neuro-Psychiatry Dermatology, 6% 8.5% 16% Pa
Slide 28: Leadership across therapeutic areas
Leadership across therapeutic areas* Ranked number 1 with 12 prescriber categories* Prescription ranking Specialist Oct ’18 Oct ‘19 Oct ‘20 Oct ‘21 Oct ‘22 Psychiatrists 1 1 1 1 1 Neurologists 1 1 1 1 1 Cardiologists 1 1 1 1 1 Orthopaedic 1 1 1 1 1 Gastroenterologists 1 1 1 1 1 Diabetologists 1 1 1
Slide 29: Best-in-class field force productivity
Best-in-class field force productivity Sales Per Medical Representative (Rs mn) 9,291 9,550 10,963 9,707 11,149 • Well trained and scientifically Impact of oriented sales representatives sales force 11.4 team with strong performance 10.0 expansion track record 9.4 8.8 8.6 • Highest field force produ
Slide 30: Emerging Markets
Emerging Markets 18% of FY22 Revenues 29
Slide 31: Emerging Markets highlights
Emerging Markets highlights Amongst the leading Indian companies in Emerging Markets Global footprint Presence in over 80 markets Focus markets Romania, Russia, South Africa, Brazil, Mexico Product portfolio Extensive basket of branded generics Customer focus Strong relationships with doctors and me
Slide 32: Rest of World
Rest of World (Western Europe, Canada, Japan, ANZ, Israel & other markets) 14% of FY22 Revenues 31
Slide 33: Rest of World highlights
Rest of World highlights Amongst the leading Indian companies Market presence • Western Europe, Canada, A&NZ, Japan, Israel and others Product portfolio • Expanding basket including specialty, hospital & retail products • Development and commercialization of complex generics and Focus differentiated
Slide 34: Global Consumer Healthcare
Global Consumer Healthcare 33
Slide 35: Global Consumer Healthcare highlights
Global Consumer Healthcare highlights An attractive opportunity India Amongst the top 10 consumer healthcare companies Global presence Presence in over 20+ countries India, Romania, South Africa, Nigeria, Myanmar, Ukraine, Poland, Markets of presence Thailand, Belarus, Kazakhstan, Nepal, Morocco, UA
Slide 36: Active Pharmaceutical Ingredients (API)
Active Pharmaceutical Ingredients (API) 5% of FY22 Revenues 35
Slide 37: API highlights
API highlights Backward integration has strategic importance Backward integration provides cost competitiveness and supply Strategic importance reliability Customers Large generic and innovator companies Product portfolio Approximately 370 APIs Pipeline development 20-30 APIs scaled up annually Regu
Slide 38: Research & Development
9 SUN PHARMA Research & Development
Slide 39: Research & Development
Research & Development Cumulative R&D spend of ~Rs 230 Bn to date R&D spend R&D spend at 5.8% of sales for FY22 Specialty R&D Global development capabilities incl. clinical trials Finished dosage development, biological support, chemistry and Generic capabilities new drug development Organization Ap
Slide 40: R&D investments
R&D investments R&D investments Filings and approvals 8.6% 6.9% 6.1% 6.5% 5.8% ANDA NDA/BLA DMF/CEP Patents** 613 67 491 2,505 22.5 22.2 21.5 19.8 19.8 517 54 379 1,643 FY18 FY19 FY20 FY21 FY22 Filed Approved Filed Approved Filed Approved Filed Granted ** Excludes expired/abandoned patents R&D inves
Slide 41: Global Manufacturing
9 SUN PHARMA Global Manufacturing
Slide 42: Global Manufacturing highlights
Global Manufacturing highlights World Class manufacturing infrastructure 43 manufacturing facilities across India, the Americas, Asia, Africa, Extensive global footprint Australia and Europe Vertically integrated network across six continents enabling high Integrated network quality, low cost and a
Slide 43: Manufacturing facilities
Manufacturing facilities 43 manufacturing sites • Formulation • India : 15, US : 3 • Canada, Japan, Hungary, Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria and Russia : 1 each • Capacities available for a variety of finished dosages • API • India : 9, Australia : 2, Israel : 1,
Slide 44: Corporate governance
Corporate governance Our philosophy on corporate governance envisages working towards high levels of transparency, accountability and consistent value systems across all facets of operations Lead Independent Director Independent Director Dr. Pawan Goenka Gautam B. Doshi Former MD & CEO of Mahindra P
Slide 45: Key Financials
9 SUN PHARMA Key Financials 44
Slide 46: Summary Financials
Summary Financials Market capitalisation Rs 2,360 Bn / US$ 29 Bn (as of 28th April 2023) ( All Figures in Rs mn ) FY18 YoY FY19 ** YoY FY20 YoY FY21 YoY FY22 YoY P&L Summary Sales 260,659 -14% 286,863 10% 323,252 13% 332,331 3% 384,264 16% Gross Profit 186,413 -16% 208,173 12% 230,947 11% 245,430 6%
Slide 47: Sales split
Sales split In Rs Bn Sales 261 287 323 332 384 21 55 21 20 45 49 18 67 15 35 30 55 58 54 48 114 105 101 87 107 128 97 103 80 73 FY18 FY19 FY20 FY21 FY22 India Formulations US Formulations Emerging Markets Rest of World API+Others 46
Slide 48: EBITDA trend
EBITDA trend In Rs Bn Sales 261 287 323 332 384 % of Sales 28.5% 27.4% 28.6% 26.1% 26.9% 20.6% 20.8% 19.7% 20.6% 19.0% 28.5% 28.0% 31.0% 30.8% 31.8% 25.3% 26.9% 21.2% 21.7% 21.3% FY18 FY19 FY20 FY21 FY22 EBITDA Other Expenditure Personnel Costs Material Costs 47
Slide 49: Cash Flow & debt
Cash Flow & debt Net Cash From operating activities (Rs Bn) Free Cash Flow (Rs Bn) 89.8 74.9 65.5 61.7 50.1 50.0 39.1 22.0 19.5 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 -10.2 Gross Debt (Rs Bn) Net Cash (excluding debt) (Rs Bn) 149.2 103.6 104.8 82.2 103.0 69.5 35.2 45.0 34.7 9.3 FY18 FY19
Slide 50: Financial ratios
Financial ratios FY18 FY19 ** FY20 FY21 FY22 Growth (%) Sales (13.9) 10.1 12.7 2.8 15.6 Gross Profit (15.8) 11.7 10.9 6.3 14.4 EBITDA (44.4) 12.5 10.8 21.5 22.5 Net Profit (69.9) 27.2 41.3 (22.9) 12.7 # # # Net Profit (Adjusted) (52.6) 17.5 3.8 47.4 29.3 # # Margins (%) Gross Margin 71.5 72.6 71.4 7
Slide 51: Key Financials Q3 & 9m FY23
Key Financials Q3 & 9m FY23 ( All Figures in Rs mn ) Q3 FY23 Q3 FY22 CHANGE 9mFY23 9mFY22 CHANGE Gross Sales 111,001 98,142 13.1% 325,533 290,403 12.1% Revenue from operation 112,410 98,631 14.0% 329,550 292,077 12.8% Gross Profit 82,965 71,736 15.7% 241,414 212,284 13.7% Gross Margin 74.7% 73.1% 74
Slide 52: Sales split Q3 & 9m FY23
Sales split Q3 & 9m FY23 ( All Figures in Rs mn ) Q3 FY23 Q3 FY22 CHANGE 9mFY23 9mFY22 CHANGE Formulation India 33,919 31,676 7.1% 102,390 96,637 6.0% US 34,660 29,718 16.6% 100,009 84,491 18.4% Emerging Markets 21,158 17,899 18.2% 60,773 51,957 17.0% ROW # 15,563 13,532 15.0% 44,682 41,138 8.6% Sub
Slide 53: Company history and key deals
Company history and key deals 52
Slide 54: Creating a global company over time
Creating a global company over time 1983 1994 2010 2012 2013 Acquired Dusa Began with 5 Acquired URL IPO – Rs 550 Mn Acquired Pharma products Taro raised 2019 2018 2016 2015 2014 Acquired Global Agreement with Acquired rights for Acquired Acquired InSite Merck for in- Ranbaxy Acquired Pola Cequa & B
Slide 55: Key deals & rationale
Key deals & rationale Year Deals Country Rationale Addition to portfolio of specialty branded 2023 Launched Sezaby US products. Treatment of neonatal seizures Adding a late-stage product to dermatology 2022 Acquired Concert Pharma in US US franchise Acquired Uractiv Portfolio from Fiterman Expand no
Slide 56: Key deals & rationale
Key deals & rationale Year Deals Country Rationale 2018 Acquired Pola Pharma in Japan Japan Access to Japanese dermatology market Acquired global rights for Cequa & 2016 Global Enhances specialty pipeline Odomzo Local manufacturing capability to enhance presence in 2016 Acquired Biosintez Russia Rus
Slide 57: Sun Pharma - focus areas
Sun Pharma - focus areas • Enhance share of specialty/branded business US business • Continue to focus on complex generics and high entry barrier segments • Ensure broad product offering to customers across multiple dosage forms • Focus on productivity enhancement India • Maintain leadership positio
Slide 58: Sun Pharma - focus areas
Sun Pharma - focus areas • Unwavering focus on sustainability, built on a legacy rooted in caring for people, communities and the planet. Sustainability • Committed to Governance, Community upliftment, Access to affordable healthcare & Environment conservation • Focus on developing complex products
Slide 59: Sun Pharma at a glance
Sun Pharma at a glance Leading global specialty generic company* Global presence Operates in over 100 countries Diversified business Specialty products, branded generics, generics & APIs Global Specialty Focused therapy approach, commercial infrastructure in key markets US Generics 9th largest in US
Slide 60: Thank You
For more information please contact Investors Thank You Dr. Abhishek Sharma Tel : +91 22 4324 4324, Xtn 2929 Tel Direct +91 22 4324 2929 abhi.sharma@sunpharma.com Corporate Address SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063 © 2017 Sun Pharmaceutical Industries L