Marksans Pharma Limited · NSE:MARKSANS
Marksans Pharma — Q4 & FY2022 Earnings Presentation
44 slides from Marksans Pharma's earnings presentation, May 30, 2022
Slide 1: Investor Presentation Q4 & FY22
Investor Presentation Q4 & FY2 2 | 3 0 t h M a y 2 0 2 2 BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2021 – Marksans Pharma Limited, All Rights Reserved. 1
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: Contents
Contents 1 Q4 & FY22 Highlights 2 Historical Performance Review 3 Company Overview 4 Business & Opportunity by Market Size 5 Key Focus Areas 6 Leadership Team 7 Investment Rationale 8 ESG & Corporate Governance 3
Slide 4: Management Commentary
Management Commentary Mark Saldanha “I am pleased to share that despite the challenging environment, we had a revenue M A N A G I N G D I R E C TO R A N D C E O growth of 8.3% YoY. Our business remained resilient. We will continue to focus on investment in R&D and manufacturing capabilities, to expa
Slide 5: Q4 & FY22 Highlights
® Marksans Pharma Ltd. Q4 & FY22 Highlights
Slide 6: Financial Highlights and Business Highlights FY22
Financial Highlights Business Highlights- FY22 Q4FY22 • Acquired Access Healthcare for Medical Products L.L.C in Dubai which is engaged in • Operating revenue was ₹418.0 cr. compared to ₹330.2 cr. in the business of marketing of medicines in UAE & neighboring countries Q4FY21, an increase of +26.6%
Slide 7: Financial Highlights – Profit and Loss Statement
Financial Highlights – Profit and Loss Statement Particulars (₹ cr.) Q4FY22 Q3FY22 Q4FY21 YoY FY22 FY21 YoY Operating Revenue 418.0 362.6 330.2 26.6% 1490.8 1,376.2 8.3% Gross Profit 206.4 195.1 203.5 1.5% 774.0 781.1 (0.9)% Gross Profit Margin % 49.4% 53.8% 61.6% (1224)Bps 51.9% 56.8% (484)Bps EBIT
Slide 8: Historical Performance Review
Historical Performance Review 8
Slide 9: 6-Year Financial Performance
6-Year Financial Performance Operating Revenue (₹ cr.) Gross Profit (₹ cr.) & Gross Profit Margin (%) 56.8% 51.9% 50.2% 49.9% 42.7% 40.2% 1,376.2 1,490.8 781.1 774.0 1,000.1 1,134.2 502.1 566.4 767.2 912.7 389.6 308.4 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 EBITDA (₹ cr.) & EBITD
Slide 10: 6-Year Financial Ratios
6-Year Financial Ratios ROE (%) ROCE (%) 26.3% 32.6% 24.6% 18.6% 19.1% 14.6% 15.3% 16.7% 10.4% 7.5% 2.6% 3.2% FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 Net Debt to EBITDA (x) Fixed Asset Turnover Ratio (x)* 2.5 1.9 4.4 4.0 2 3.6 3.5 3.3 1.5 1 2.9 1 0.5 0.5 0 -0.5 -1 -0.4 -0.6 -1.5
Slide 11: Segmental Mix
Segmental Mix Therapeutic Segment-Wise Split Segment Revenue Split 10.2% 6.8% 8.2% 11.7% 13.9% 12.7% 7.5% 8.3% 8.6% 8.6% 6.6% 7.3% 6.0% 12.0% 8.8% 20.6% 18.4% 44.1% 10.9% 3.6% 51.0% 58.0% 54.7% 5.2% 58.6% 11.7% 6.0% 11.4% 6.3% 6.7% 68.6% 14.2% 9.0% 8.5% 12.4% 13.8% 13.1% 9.0% 14.6% 15.4% 15.4% 14.5%
Slide 12: Global reach ensures low country concentration risk
Global reach ensures low country concentration risk Company’s business is classified under 4 REVENUE MIX heads: 3.4% 3.0% 5.6% 4.2% 4.6% 4.5% 10.9% 10.6% 13.8% 12.0% 12.4% 12.1% 1 North America/ US generics 2 Europe/UK generics 37.3% 45.5% 42.3% 40.9% 41.3% 45.0% 3 Australia and New Zealand Rest of
Slide 13: 5-year Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (₹ cr.) FY18 FY19 FY20 FY21 FY22 Operating Revenue 912.7 1,000.1 1,134.2 1,376.2 1490.8 Gross Profit 389.6 502.1 566.4 781.1 774.0 Gross Profit Margin % 42.7% 50.2% 49.9% 56.8% 51.9% EBITDA 78.4 132.1 192.3 339.6 258.9 5-year Historical Consolidat
Slide 14: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (₹ Cr.) FY20 FY21 FY22 Particulars (₹ Cr.) FY20 FY21 FY22 EQUITY AND LIABILITIES ASSETS EQUITY NON-CURRENT ASSETS Share Capital 41 41 41 Property, Plant & Equipment 219 234 276 Reserves and Surplus 595 846 1,161 Right to use assets 11 14 65 Non-Contr
Slide 15: Company Overview
® Marksans Pharma Ltd. Company Overview
Slide 16: Business Structure
Business Structure 60% 100% 100% 100% 100% 100% 100% Distribution of quality Engaged in the branded pharma products business of marketing of medicines in the Manufacturer 162+ Manufacturer of UAE and neighboring of OTC Liquids product range of OTC & Rx Only OTC countries. & Ointments licenses; produ
Slide 17: Business Overview
RE V E N U E M I X - B U S I NE S S M O D E L - Business Overview 31% ~96% FY22 of revenues comes from 69% regulated markets Product Portfolio FY22 (₹ Cr.) Pain Management Rx OTC 762.8 Cough & Cold 169.6 Forward- Cardiovascular System(CVS) 126.5 integrated Gastrointestinal 98.8 12% 4% business model
Slide 18: Focused Business Model
Focused Business Model Focus on Forward Wide 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 products
Slide 19: Forward Integrated Business Model
Created forward Integrated Forward Integrated Business Model Model Low cost Manufacturing Strong Front End Focus on R&D Customers base Distribution Australia Goa, India and Navi Mumbai, India Goa, India Pharmacy Stores United Kingdom, Europe Southport, United Kingdom Southport, Retail Chains United
Slide 20: 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 21: Most active in Softgel segment with limited competition
Most active in Softgel segment with limited competition DIFFERENTIATED OFFERINGS LIMITED COMPETITION HIGH BARRIERS TO ENTRY Focused on softgel capsules to build a Given the challenges in preparing softgel High capex requirements and operational differentiated set of offerings in the formulations plu
Slide 22: Unique Sustainable Competitive Position
Unique Sustainable Competitive Position >76 products in pipeline Disciplined track record of M&A and integration Low-cost manufacturing across 3 global sites Long-term customer partnerships Creating Shareholder Value Planning backward integration for key Mass customization capabilities API formulati
Slide 23: Business & Opportunity by Market Size
Business & Opportunity by Market Size 23
Slide 24: US Business & Opportunity by Market Size
US Business & Opportunity by Market Size O V E RV I E W O F T H E M A RK E T C O M PAN Y P RE S E N C E ANDA PIPELINE • The US holds over 30-40% of the global 32 Products in Pipeline • In June 2015, Marksans acquired Time-Cap Labs which pharmaceutical market. Nominal spend on enabled Marksans to exp
Slide 25: Expansion Strategy for US
Expansion Strategy for US • 50+ products in various therapeutical segments in both OTC & Rx US BUSINESS FY22 • Positioned in the niche soft gel category • Capacity increased by adding more packaging and manufacturing lines • 23 ANDAs filled till date • Expanding presence through increase in customer
Slide 26: UK Business & Opportunity by Market Size
UK Business & Opportunity by Market Size O V E RV I E W O F T H E M A RK E T C O M PAN Y P R E SE N C E M A RK E T I N G A U T H O R I S AT I O N P I P E L I N E The UK & EU pharmaceutical market is • One of the top 5 Indian pharma companies in estimated to grow from ~USD 468 billion the UK 34 in 20
Slide 27: Expansion Strategy for UK
Expansion Strategy for UK • Wide UK customer base and 100% reach within the distribution channel UK BUSINESS FY22 • 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 fo
Slide 28: Australia Region Business & Opportunity by Market Size
Australia Region Business & Opportunity by Market Size O V E RV I E W O F T H E M A RK E T C O M PAN Y P R E S E N C E O U T LO O K 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
Slide 29: Emerging Market Business & Opportunity by Market Size
Emerging Market Business & Opportunity by Market Size O V E R V I E W O F T H E M A RK E T C O M PAN Y P R E S E N C E O U T LO O K • In these countries, targeting specific • Total number of products approved are ROW includes markets of South East countries like UAE, Iraq, Ukraine, CIS, 124 Asia, ME
Slide 30: Manufacturing Capabilities
Manufacturing Capabilities Goa, India • Manufactures oral solid tablets, C A PA CI T Y A CC R E D I TATI ON S and soft and hard gelatin capsules 2.4 bn softgel and hard gelatin capsules per annum • Ongoing expansion for adding new manufacturing lines 6 bn solid tablets per annum Southport, UK • Manu
Slide 31: R&D and Product Launches Highlights
K E Y P R OD U C T L A U N C H E S IN FY22 R&D and Product Brand Composition Therapy Segment Market Launches Highlights LOSARTAN ONDANSETRON LOSARTAN 25 MG, 50 MG, 100 MG TABLETS ONDANSETRON 4MG, 8 MG TABLETS Anti-Diabetic Gastrointestinal UK UK CARVEDILOL CARVEDILOL 3.125 MG, 6.25 MG, 12.5 MG, 25 M
Slide 32: Key Focus Areas
® Marksans Pharma Ltd. Key Focus Areas
Slide 33: Key Focus Areas
Key Focus Areas STRATEGY G R OW T H L E V E R S Expansion The company generates ~96% 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 other re
Slide 34: Leadership Team
® Marksans Pharma Ltd. Leadership Team
Slide 35: Leadership Team
Leadership Team M R . M A RK S A L D AN H A M R . VA R DD H M A N JA I N M R . S AT H I S H K U M A R M R . D AVI D M O H A M M E D M R . J I T E N DR A M S H A R M A M a n a g in g D i re c t o r & C E O W h o l e - T i m e D i r e c t o r. M D – Mark sa n s P ha rm a UK Lt d. M D - Pharmaceuticals
Slide 36: Investment Rationale
® Marksans Pharma Ltd. Investment Rationale
Slide 37: Investment Rationale
Investment Rationale Forward integrated business model with presence across Sustainable business model with strategic focus on pharma value chain including in-house R&D centers, 1 regulated markets with USA, UK, Australia and 5 owned and outsourced manufacturing capacities, New Zealand contributing
Slide 38: Key Strengths
Key Strengths Wide Product Amongst Largest Key Markets Portfolio Pharma Market Company is widening its products portfolio The US, the UK and Australia are the Marksans is among a handful of Indian in the complex and high-margin key Marksans’ markets with all of them players with a proprietary market
Slide 39: Share price and shareholdings
Share Holdings and Share price movement 200 180 160 140 120 100 80 Share price and shareholdings Marksans Pharma BSE Healthcare BSE Sensex Price Data (31st March 2022) Shareholding Pattern as on 31st March 2022 Face Value (INR) 1.0 Promoters 48.3% Market Price (INR) 45.6 Others 52 Week H/L (INR) 97.
Slide 40: ESG and Corporate Governance
ESG and Corporate Governance 40
Slide 41: ESG Philosophy
ESG Philosophy ENVIRONMENTAL SOCIAL GOVERNANCE • Efficient use of resources to • Company is actively contributing to • Committed to good corporate minimize the waster generation. the social and economic governance to achieve long development and build a better term corporate goals and to • Priority
Slide 42: ESG
ESG • Provided Covid-19 related, antibody testing, and other medical requirements like medicines , PROVIDED COVID-19 RELIEF SUPPLIES sanitizers, masks, gloves and PPE kits to the frontline workers in Goa FREE FOOD TO NEEDED PEOPLE • Joined hands with NGO’s to serving meals, ration, grocery kits for
Slide 43: 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 44: Contact Us
Contact Us I NV ES TOR R EL AT I ONS T EA M C OR P OR AT E OF F I C E Jitendra Sharma 11th Floor Grandeur, Off Veera Desai Road, (CFO) Opp Gundecha Symphony, Andheri (W), Mumbai – 400 053, Maharashtra - India Marksans Pharma Ltd Tel: +91 022 40012000 jitendra@marksanspharma.com Investor Relations ir