Jb Chemicals & Pharmaceuticals Ltd. · NSE:JBCHEPHARM
Jb Chemicals & Pharmaceuticals — Merger or Acquisition (January 2022)
23 slides from Jb Chemicals & Pharmaceuticals's merger presentation, Jan 27, 2022
Slide 1: Investor Presentation cover letter to NSE
• J. B. CHEMICALS & PHARMACEUTICALS LIMITED A January 27, 2022 National Stock Exchange of India Limited Exchange Plaza, 5" Floor, Plot No. C/1, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Stock Symbol: JBCHEPHARM Dear Sir, Subject: Investor Presentation Enclosed please find the prese
Slide 2: Acquisition of Brands & Related Assets from Sanzyme Private Limited
Acquisition of Brands & Related Assets from Sanzyme Private Limited January 2022
Slide 3: Disclaimer
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this
Slide 4: Company Overview
¢ - ef ce °/ = t J.B. CHEMICALS & PHARMACEUTICALS LTD. Company Overview N
Slide 5: JB Chemicals at a glance
Years of operations with consistent Brands among top 300 brands, 45 track record across multiple businesses 5 contributing over 70% of domestic formulations revenues Global manufacturer of Regulated/semi-regulated markets 40+ of presence through direct operations and distributors Top 5 medicated/her
Slide 6: Financial performance and business-wise revenue
Revenue (INR cr) PAT (INR cr) EBITDA Margin (%) ROE (%) ROCE (%) 27.4% 42% 21.3% 18.6% 29% 15.4% 24% 2,043 25% 1,643 1,775 15% 1,413 19% 13% 272 449 139 194 10% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 5 Financial Year ends on 31st March Business-wise Revenue (INR crore) 86 24 39 9 FY21 224 115 H1 FY
Slide 7: Transaction Overview & Opportunity; Financials/Way Forward
Transaction Overview & Opportunity 7 Financials/Way Forward 20 6
Slide 8: Transaction Overview
J.B. CHEMICALS & PHARMACEUTICALS LTD. Transaction Overview N
Slide 9: Transaction Overview and Brands Overview
Transaction • Acquisition of brands and related assets from Sanzyme Private Limited in the probiotics, therapeutic Overview nutraceuticals and reproductive health market • Sanzyme is a leading player in the probiotics and hormones segments • Flagship brand “SPORLAC” is one of the leading probiotic b
Slide 10: Consideration of ~INR 628 crore and transaction rationale
• JBCPL will pay a consideration of ~INR 628 crore* upon successful closing of the transaction • The transaction is expected to close in the next two weeks subject to customary closing formalities • JBCPL will fund the acquisition through a mix of internal accruals and short-term debt • As of Septem
Slide 11: Sanzyme Overview and Brands Portfolio
Overview Brands Portfolio Sporlac Division • Sanzyme is engaged in the manufacturing of speciality • 3rd largest probiotics brand in India probiotics formulations and infertility management • today3 Wide range of indications like diarrhea, IBS/IBD2, immunity building, dental products Sporlac DS Tabl
Slide 12: Key Brands
Transaction Overview — Key Bran a LACTIC ACID BACILLUS TABLETS (120M) + (Earlier known as Lactobacillus sporogenes ) SPORLAC ., SPORLAC’- DS TABLETS POWDER 30x 20 Tablets Sanzyme . weplocnocus thermophilus, Lack fidabacterium longum, Ba LOBUN rfesrte, Oxalobacter formigenes, Bifidobacterium lactis,
Slide 13: CEO comment on first acquisition
o We are glad to announce our first acquisition which expands our presence into new therapeutic areas and increases the addressable opportunity in the India pharma market. This is in line with our stated objective of building big brands through category leaders. o Sanzyme has been a pioneer in the p
Slide 14: Rationale: high growth market, attractive brands, synergies
• Focused on high growth probiotics Multiple levers available with High growth market and reproductive health market JBCPL to accelerate next phase of growth • Leadership position in operating categories Lifecycle management of • Highly scalable and go to brands portfolio with existing brands, lever
Slide 15: Probiotics is the fastest-growing subgroup in Indian Gastro market
Probiotics is the fastest-growing subgroup in the Indian Gastro market Indian Gastro-Intestinal Market - CAGR Market Share Distribution (%) Indian Probiotics Market % MS (MAT Dec’17-Dec’21)) Digestive Enzymes 12% Others 15% Probiotics 13% Top 10 150+ Antacids 11% 65% Players Laxatives 12% PPIs (Prot
Slide 16: High prevalence of reproductive health issues in India
High prevalence of reproductive health issues in India 1 in 6 couples 1 in 5 women >50% 2.0 – 2.5 lakh 10 – 15% Of men in the 40+ Of Indian couples are Impacted in metros Suffers from PCOS IVF cycles age bracket, affected by infertility and big cities2 (Polycystic Ovarian performed in India experien
Slide 17: Sporlac, Lobun and Oxalo brands
Sporlac (Sporlac division) #3 Sporlac is a leading Probiotic India’s first Probiotics brand, introduced in 1970s brand, highly recommended 3rd largest Probiotics brand in India today, by value1 by healthcare professionals Wide range of indications like diarrhea, IBS / IBD2, immunity building
Slide 18: Sales channels, specialist coverage and distribution network
Segment Core Key Brands1 Sales Channel Specialist Coverage Probiotics General Practitioners, Sporlac Pioneer in probiotics category Sporlac Pharmacies General Physicians, Pediatricians Novel application of probiotics in kidney Lobun Nephrologists, Urologists, Other Reproductive (Nephro & Urology) ca
Slide 19: Market opportunity and synergy
Area Comments Synergy • Among the highest growing segments in Indian pharmaceutical market and gastro-enterology segment ✔ Market Opportunity • Still a nascent opportunity in India • Strong OTX orientation – mix of Rx and over the counter sales • Associated with immunity boost and health benefits •
Slide 20: Transaction Overview & Opportunity; Financials/Way Forward
Transaction Overview & Opportunity 7 Financials/Way Forward 20 19
Slide 21: Way forward
o Acquisition of Sanzyme’s brands will help accelerate growth for the India business − India business to now account for more than 50% of JBCPL’s revenues o Go-To-Market synergies expected to accelerate top line performance and ensure profitability of the business o JBCPL’s IPM ranking in India shou
Slide 22: For further information, please contact
J.B. Chemicals and Pharmaceuticals Limited For further information, please (JBCPL) (BSE: 506943 | NSE: JBCHEPHARM | ISIN: INE572A01028), established in 1976, is one of contact: the fastest growing pharmaceutical companies in Lakshay Kataria, Chief Financial Officer India and a leading player in the
Slide 23: Thank You
J.B, CHEMICALS & Thank You
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