WuXi AppTec Co., Ltd. Class A · SSE:603259
WuXi AppTec Co., Ltd. Class A — Q3 2023 Earnings Presentation
27 slides from WuXi AppTec Co., Ltd. Class A's earnings presentation, Oct 31, 2023
Slide 1: WuXi AppTec Third Quarterly 2023 Results
WuXi AppTec Third Quarterly 2023 Results October 31, 2023 1 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
Forward-Looking Statements This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe
Slide 3: Results Overview, Business Highlights, Financial Performance, Growth Outlook
01 Results Overview 02 Business Highlights 03 Financial Performance 04 Growth Outlook 3 Note: All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The currency is RMB. All net profit disclosed in this presentation represents ne
Slide 4: 1. Results Overview
1. Results Overview 4
Slide 5: Revenue in Q3 2023 Back to over RMB 10 Billion
Revenue in Q3 2023 Back to over RMB 10 Billion Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion +0.3% excluding +15.7% COVID-19 +24.3% commercial projects 3.1 10.6 10.7 2.5 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Net Profit Net Profit After Deducting Non-Recurring Items RMB billion RMB billion +
Slide 6: Continued Solid Growth of Revenue & Profit in Q1-Q3 2023
Continued Solid Growth of Revenue & Profit in Q1-Q3 2023 Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion +4.0% excluding +23.4% COVID-19 +20.6% commercial projects 8.2 29.5 6.8 28.4 Q1-Q3 2022 Q1-Q3 2023 Q1-Q3 2022 Q1-Q3 2023 Net Profit Net Profit After Deducting Non-Recurring Items RMB
Slide 7: Q1-Q3 2023 Business Highlights
Q1-Q3 2023 Business Highlights Enable Customers to Grow Together Build Platform & Improve Efficiency 900+ new customers, 6,000+ active customers 32 global sites & branch offices Backlog maintained H1 growth momentum, among which: 41,148 total employees, including 37,899 scientists & technicians TIDE
Slide 8: Our Platform & Business Model Continued to Perform Well
Our Platform & Business Model Continued to Perform Well Execute Long-Tail Strategy Increase Customer Strong, Loyal & & Increase Support to Conversion to Sustain Expanding Customer Base Large Pharma Growth Revenue breakdown Revenue breakdown Revenue breakdown Existing clients Top 20 global pharma cli
Slide 9: Stability and Resilience of the Company's Financial Performance
Diversified Revenue Streams from Customers Across Regions Ensure the Stability and Resilience of the Company’s Financial Performance China Europe 5.24Bn, +5% 3.28Bn, +10% US Revenue contribution: 18% Revenue contribution: 11% 19.40Bn, excluding COVID-19 commercial projects +36% Revenue contribution:
Slide 10: ESG Leading Position Further Enhanced in Global ESG Rating Systems
ESG Leading Position Further Enhanced in the Global ESG Rating Systems Consecutive “AA” ratings in 2021, Improved to “Silver” rating in 2023 2022 and 2023 Named to the 2022 S&P DJSI Awarded as Industry and Leadership level of “A-” in 2022 (World and Emerging Markets) Regional Top Rated company CDP C
Slide 11: 2. Business Highlights
2. Business Highlights Z ls Ban. =|
Slide 12: WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth
WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth, with Continued Expansion in TIDES Drug Discovery (R) Generating Strong Growth of Development Continued Expansion of Financial Performance Downstream Opportunities and Manufacturing (D&M) New Modalities (TIDES) ⚫ Q3 revenue decline
Slide 13: WuXi Chemistry: Growing CRDMO Pipeline
WuXi Chemistry: Growing CRDMO Pipeline driven by “Follow the Molecule + Win the Molecule” Strategies “R” Q1-Q3 2023 Newly 428,269 Compounds 1 Added Molecules in Total 926 904 2,579 Preclinical & Phase I 20 316 Phase II 1 61 Phase III 1 58 Commercial 13 Note: 1. 428,269 compounds successfully synthes
Slide 14: WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leadership
WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leadership Position and Drive Steady Growth Financial Performance Lab Testing Services Clinical CRO & SMO ⚫ Q3 revenue grew 12.2% YoY ⚫ Q3 revenue of lab testing services grew 12.2% YoY to 1.29bn, ⚫ Q3 revenue from clinical CRO and SMO grew
Slide 15: WuXi Biology: New Modalities Business Drives Growth
WuXi Biology: New Modalities Business Drives Growth; WuXi Biology Platform Continues to Generate Downstream Opportunities Financial Performance Discovery Biology Comprehensive Screening Platform ⚫ Q3 revenue declined 3.8% ⚫ One of the largest discovery biology enabling ⚫ Early discovery screening pl
Slide 16: WuXi ATU: CTDMO Business Model Drives Growth
WuXi ATU: CTDMO Business Model Drives Growth Financial Performance Pipeline & Progress of Commercial Projects ⚫ Q3 revenue grew 2.7% YoY ⚫ Focused on improving our integrated CTDMO enabling platform, providing development, testing & manufacturing services for to 0.31bn 68 projects, including 7 Phase
Slide 17: WuXi ATU: Growing Pipeline on Globally Integrated CTDMO Platform
WuXi ATU: Growing Pipeline on Our Globally Integrated CTDMO Platform Testing Cell Therapies Gene Therapies CAR-T | TIL | MSC Cells AAV | LVV | TESSA US | EU | CN Provided globally integrated CTDMO 52 Preclinical & Phase I services to Cell & Gene Therapies product 9 Phase II development 7 Phase III ✓
Slide 18: WuXi DDSU: First Year to Receive NDA Approval of New Drugs
WuXi DDSU: the First Year to Receive NDA Approval of New Drugs Developed for Customers; Breakthrough to Receive the First Royalty Income Financial Performance NDA Approval Project Pipeline ⚫ Q3 revenue declined 31.2% ⚫ In Q1-Q3 2023, 2 new drugs developed for our ⚫ In Q1-Q3 2023, supported customers
Slide 19: 3. Financial Performance
3. Financial Performance 19
Slide 20: Financial Performance
Financial Performance Revenue Adjusted Non-IFRS Gross Profit Adjusted Non-IFRS GPM RMB MM RMB MM +4.0% +23.4% 39.8% 40.0% 40.3% 38.0% 38.7% 38.7% 42.3% excluding COVID-19 39,355 commercial projects +13.8% 29,541 15,228 28,395 12,511 22,902 10,991 16,535 10,638 10,670 Q3 8,704 4,656 Q3 12,872 6,670 4
Slide 21: Segment Revenue
Segment Revenue RMB MM WuXi Chemistry WuXi Testing +2.0% +31.0% +16.2% excluding COVID-19 commercial projects 4,854 20,817 21,241 4,177 1,763 Q3 7,843 7,774 +22.4% Q3 1,572 H1 12,974 13,467 +36.1% H1 2,605 3,091 Q1-Q3 2022 Q1-Q3 2023 Q1-Q3 2022 Q1-Q3 2023 WuXi Biology WuXi ATU WuXi DDSU +6.5% +11.6%
Slide 22: Segment Adjusted Non-IFRS Gross Profit
Segment Adjusted Non-IFRS Gross Profit RMB MM WuXi Chemistry WuXi Testing +13.3% +21.8% 45.7% 41.2% 38.6% 36.8% 9,717 1,875 8,576 1,539 Q3 3,262 3,614 707 Q3 612 H1 5,314 6,103 1,168 H1 927 Q1-Q3 2022 Q1-Q3 2023 Q1-Q3 2022 Q1-Q3 2023 WuXi Biology WuXi ATU WuXi DDSU +10.7% -17.8% 42.8% 41.1% Q1-Q3 20
Slide 23: Adjusted Non-IFRS Net Profit
Adjusted Non-IFRS Net Profit RMB Million Q1-Q3 2022 Q1-Q3 2023 Net profit attributable to the owners of the Company 7,378 8,076 RMB MM Add: Share-based compensation expenses 503 481 Issuance expenses of convertible bonds 1 0.3 +20.6% Fair value gains from derivative component of (617) (40) 8,167 con
Slide 24: Continued Growth of FCF Driven by Business Growth & Operating Efficiency
Continued Growth of FCF Driven by Business Growth & Operating Efficiency Q1-Q3 2023 Operating Cash Flow Grew Strongly by 32.5% YoY; Continued to Invest in New Capacities & New Capabilities RMB MM Capital Expenditure 9,966 10,230 9,848 Operating Cash Flow 6,936 Q1-Q3 Q1-Q3 2022 2022 4,379 7,431 3,828
Slide 25: 4. Growth Outlook
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Slide 26: Q4 and Full Year 2023 Revenue Forecast
Q4 and Full Year 2023 Revenue Forecast +25-26% RMB billion (Overall +2-3%) Revenue from COVID-19 Commercial Projects Revenue from non-COVID-19 Commercial Projects 39.4 40.1-40.5 Revenue Growth excluding COVID-19 Commercial Projects +16.9% +39.5% +15.7% +29-34% 9.9 10.6 10.7 11.0 10.6-11.0 8.5 9.0 9.
Slide 27: 2023 Outlook
2023 Outlook The Company sees lower than expected demand of early-stage drug discovery services in Q4, 1 which will be significantly below budget. Therefore, we adjust 2023 revenue growth from 5-7% to 2-3%; excluding COVID-19 commercial projects, revenue growth from 29-32% to 25-26% Thanks to FX imp