Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Ranbaxy Laboratories — Q3 2012 Earnings Presentation
21 slides from Sun Pharmaceutical Industries's earnings presentation, Nov 8, 2012
Slide 1: Financial Results: July–September 2012 (Q3)
Ranbaxy Laboratories Limited FINANCIAL RESULTS: July – September 2012 (Q3) YTD September 30, 2012 (YTD Sep) ARUN SAWHNEY CEO & MD Dept. 08 Nov Name 2012 Post Results Conference Call Privileged and Confidential
Slide 2: Safe Harbor
Safe Harbor 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”, “p
Slide 3: Key Achievements for Quarter 3, 2012
1/2 Key Achievements for Quarter 3, 2012 Financial Sales grew 18% over the corresponding quarter EBITDA margins improved Aided by sales growth and continued focus on cost optimization 480 16% 442 Percent $ Mn 6% Q3 2011 Q3 2012 Q3 2011 Q3 2012 Sales EBITDA/ Sales% Growth calculated on Constant
Slide 4: Key Achievements for Quarter 3, 2012
2/2 Key Achievements for Quarter 3, 2012 Launched AG Actos® Gx/ Business Pioglitazone Emerging market sales $233 Mn Emerging market base business 52% of DF sales contributes to more than 1/2 of Developed market sales $216 Mn DF base business sales 48% of DF sales India: USA: Performanc
Slide 5: $ appreciated against most currencies vs. previous year
$ appreciated against most currencies Vs. previous year Sep 2011 Vs. Sep 2012 MYR NGN RUB EUR ZAR RON INR BRL -3% -3% -9% -11% -14% -17% -17% -20% $ appreciated against most currencies vs. previous year Performance in $ terms seems weaker compared to actual business performance in local currency
Slide 6: Functional Performance
Functional Performance Manufacturing Received approval to set up a Greenfield manufacturing facility by the government of Malaysia to triple the existing capacity in the focus market for Ranbaxy Further strengthened manufacturing in the EMs through focused approach towards Nigeria, Egypt and Mor
Slide 7: Hybrid Business Model
Hybrid Business Model Synergy with Daiichi Sankyo Front end: Ranbaxy is the front end for Daiichi Sankyo on multiple markets including India, Romania, Africa region, Malaysia, Singapore and Italy Back end etc.: Synergy through collaborative supply chain in Europe Information technology sav
Slide 8: Other Areas
Other Areas Regulatory Consent Decree: satisfactory progress Regulatory inspections by 14 country level authorities Derivatives Position Exposure down to ~$1.27 Bn in Q3 2012 from ~1.39 Bn in Q2 2012. Maturity: ~$40 Mn/Month Debt Total Debt $755 Mn; Cash & Bank Bal $778 Mn Net Cash Surplus
Slide 9: Financial Performance
Ranbaxy Laboratories Limited Financial Performance FINANCIAL RESULTS: July – September 2012 (Q3) Dept. 08 Nov Name 2012 Post Results Conference Call Privileged and Confidential
Slide 10: Sales Performance
Sales Performance $ Mn Consolidated Sales Consolidated Sales Q3 2012 YTD Sep 2012 1,803 1,374 480 442 18% 38% Q3 2011 Q3 2012 YTD Sep 2011 YTD Sep 2012 Sales growth continued on Quarter and YTD basis Major regions including India, Americas, East and West Europe recorded overall sales growth on l
Slide 11: North America
North America $ Mn 855 Major markets -USA -Canada 385 167 103 62% 123% Q3 2011 Q3 2012 YTD Sep 2011 YTD Sep 2012 Strong sales in the USA supported by improvement in base sales and launch of Actos®/ Pioglitazone Maintain strong Atorva franchise MS post exclusivity Pioglitazone launched as an AG
Slide 12: India
India Rs. Mn Major markets 16,268 14,559 -India, CHC $306 Mn -SL $322 Mn 5,829 5,217 $106 Mn $114 Mn 13% 13% Q3 2011 Q3 2012 YTD Sep 2011 YTD Sep 2012 Ranbaxy sales growth faster than the IPM growth in represented market Strong OTC sales performance continued India Pharmaceuticals Market (IPM)
Slide 13: East Europe & CIS
East Europe & CIS $ Mn Major markets -Romania -Russia 179 -Ukraine 168 63 58 4% 3% Q3 2011 Q3 2012 YTD Sep 2011 YTD Sep 2012 Sales improved over corresponding period, on constant forex basis Regulatory changes including ‘claw-back’ and more stringent re-registrations affected business Continue
Slide 14: West Europe
West Europe $ Mn Major markets -France -Germany 137 -UK 116 44 38 30% 28% Q3 2011 Q3 2012 YTD Sep 2011 YTD Sep 2012 Focused approach led to sales improvement Sales in Germany, Italy and the UK businesses stronger Concerns on Macro-economic indicators continue: business opportunity as budget co
Slide 15: Asia Pacific & Middle East
Asia Pacific & Middle East $ Mn Major markets -ANZ -Malaysia 82 73 26 24 13% (5%) Q3 2011 Q3 2012 YTD Sep 2011 YTD Sep 2012 Received permission for a greenfield manufacturing facility from the government of Malaysia Will address supply constraints in the country/ region Growth calculated on Cons
Slide 16: Africa
Africa $ Mn Major markets -South Africa 140 -Nigeria 128 44 37 - (6%) Q3 2011 Q3 2012 YTD Sep 2011 YTD Sep 2012 Sales in the region impacted by adverse exchange rate movement ARV supplies in South Africa grew during the Quarter North Africa (Morocco) business growth in line with plans Growth c
Slide 17: Latin America
Latin America $ Mn Major markets -Brazil 48 -Mexico 30 16 12 (19%) (33%) Q3 2011 Q3 2012 YTD Sep 2011 YTD Sep 2012 LATAM sales lower due to product supply disruption in the region Pursuant to Hybrid strategy work together with DS in Mexico and Venezuela Growth calculated on Constant Forex Privil
Slide 18: API & Others
API & Others $ Mn 115 95 39 32 (16%) (14%) Q3 2011 Q3 2012 YTD Sep 2011 YTD Sep 2012 API business to support DF and focus on profitability Growth calculated on Constant Forex Privileged and Confidential 18
Slide 19: Financials Q3 2012 $ Mn
Financials Q3 2012 $ Mn Q3'11 Q3'12 Particulars YTD Sep 11 YTD Sep 12 116 107 - Within India 325 311 326 374 - Outside India 1,049 1,492 442 480 Sales 1,374 1,803 18 7 Other operating income 41 32 460 488 Total Operating Income 1,415 1,835 177 188 Consumption 509 547 89 85 Employee cost 275 267 152
Slide 20: Financials Q3 2012 INR Mn
Financials Q3 2012 INR Mn Q3'11 Q3'12 Particulars YTD Sep 11 YTD Sep 12 5,324 5,881 - Within India 14,719 16,532 14,908 20,633 - Outside India 47,460 78,677 20,232 26,514 Sales 62,180 95,209 802 397 Other operating income 1,854 1,664 21,035 26,910 Total Operating Income 64,034 96,873 8,108 10,397 Co
Slide 21: Questions & Answers
Questions & Answers Dept. Name Privileged and Confidential