Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Ranbaxy Laboratories — Investor Presentation (April 2013)
39 slides from Sun Pharmaceutical Industries's investor presentation, April 2013
Slide 1: Investor Presentation 2013
Investor Presentation 2013 Updated Apr 2013
Slide 2: Safe Harbor
Safe Harbor Forward Looking Statements 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
Slide 3: Overview: Mission, Key Milestones
1 Overview 2 3 Organizational Global Presence Priorities Mission Gx Business Business, R&D & Key Milestones Advantages Manufacturing 5 6 Corporate 4 Past Financials Governance Daiichi Sankyo Shareholding Partnership Share Pattern Performance CSR Overview 7 Mission Long Term Value Drivers Challenges
Slide 4: Overview 1/2
Overview 1/2 Ranbaxy is an innovation driven Generics Company Innovation, science focused Generics Company Innovative products developed on platform of diverse technologies coupled with analytical capabilities Growth focus: (1) Focus on building Branded Generics business, worldwide (2) Leverage Ranb
Slide 5: Overview 2/2
Overview 2/2 Pioneer in the Indian Pharma market with competitive advantages at a global level • Entrepreneurial & • R&D • Amongst the top global Gx empowering culture • Strength in technology companies • Strong presence in • 1,100+ R&D Personnel with • Sales in over 150 countries over 75% are quali
Slide 6: Mission
Mission Enriching lives globally, with quality and affordable pharmaceuticals Mission Enriching lives globally, with quality and affordable pharmaceuticals. Tagline Trusted medicines. Healthier lives. 6
Slide 7: Key Milestones
Key Milestones Ranbaxy has been a trendsetter for the Indian Pharma Industry 2012 Launched First New Drug from India, Synriam TM, a new age cure for Malaria Launched Gx Lipitor®, largest pharma product 2011 in the world. Crossed $2 Bn in Global Revenue Executive Leadership reconstituted for 2009 tra
Slide 8: Global Presence, Gx Business Advantages
1 Overview 2 3 Organizational Global Presence Priorities Mission Gx Business Business, R&D & Key Milestones Advantages Manufacturing 5 6 Corporate 4 Past Financials Governance Daiichi Sankyo Shareholding Partnership Share Pattern Performance CSR Global Presence 7 Gx Business Long Term Value Drivers
Slide 9: Global Presence
Global Presence Ground presence in ~40 countries and products sold in over 150 countries Mohali SEZ, India is the latest manufacturing facility to receive USFDA approval 9
Slide 10: Sales Breakup Across Geographies
Sales Breakup Across Geographies Ranbaxy is focused on developing Branded Gx in Emerging Market; sales are well distributed across Developed and Emerging markets CY 2012 As a % of Region/Business ($ Mn) Total North America 1,011 44% India Incl. SL 409 18% Eastern Europe + CIS 250 11% Western Europe
Slide 11: Generics Business Advantages
Generics Business Advantages Governments across the world are promoting Gx; a unique advantage for larger Indian players • Patent Expiries • Availability of large scientific • Low Gx penetration talent pool • Control increase in • Cost advantage healthcare costs • Gx/ Rx competencies Growth India po
Slide 12: Organizational Priorities, Business, R&D & Manufacturing
1 Overview 2 3 Organizational Global Presence Priorities Mission Gx Business Business, R&D & Key Milestones Advantages Manufacturing 5 6 Corporate 4 Past Financials Governance Daiichi Sankyo Shareholding Partnership Share Pattern Performance CSR Organizational 7 Long Term Value Priorities Drivers Ch
Slide 13: Ranbaxy Organizational Priorities
Ranbaxy Organizational Priorities Build a sustainable, profitable & growing business across the world based on quality Business • Focus on sustainable, profitable growth in base business • Successfully monetize high value opportunities R&D and Manufacturing • R&D to be innovative, competitive and co
Slide 14: Business 1/2
Business 1/2 Focus on sustainable, profitable growth in base business and capitalize on high value opportunities Business • Focus on sustainable, profitable growth in base business • Successfully monetize high value opportunities in Developed markets Base Business High Value Niche/Exclusive Product
Slide 15: Business 2/2
Business 2/2 Focused approach on high Emerging and value added markets Emerging Market/ Brand Focus Developed/ Opportunity Market Focus • India • Brazil • Canada • Malaysia • Venezuela • USA • South Africa • Mexico • W. Europe • Nigeria • Scandinavia • Morocco • Australia • Egypt • New Zealand • Rom
Slide 16: Americas
Americas USA has the largest generic market worldwide and is amongst the most important markets for Ranbaxy • USA Market size is $325 Bn in 2011; growth ~4% pa. • USA has the largest generic market worldwide. • Significant patent expiries through 2015 in the USA. • Ranbaxy pioneered USA market entry
Slide 17: European Union
European Union Present in almost all the EU countries. Ranbaxy is ranked No.1 in its represented segment in Romania • Size of EU pharma market is $140 Bn with marginal growth of 2%. UK • West Europe has slowed down while East Europe is an emerging Pharma market. • West Europe is a bottom line focus
Slide 18: India
India Ranbaxy has been a pioneer in the domestic market; key market for Ranbaxy • Indian Pharma Market (IPM) is amongst the larger markets in the world with turnover of ~$13 Bn and growth rate of more than 13-14% pa. • Ranbaxy is amongst the largest Pharma companies in India. • Ranbaxy has been a pi
Slide 19: APAC (excluding India) & Africa
APAC (excluding India) & Africa APAC and Africa are growth markets for the Company • Strong, growing presence in APAC ex India. • Manufacturing facility in Malaysia. • First company to launch generic Lipitor in Australia. • Capitalize on DS’s strengths in China, Japan & South Korea to claim high mar
Slide 20: Research & Development: Overview
Research & Development: Overview Ranbaxy has an attractive portfolio of ANDAs and FTF pipeline Amongst the Investment highest R&D spend in Over 1,100 People Indian Cos. R&D Amongst the highest number of personnel Dedicated Infrastructure with post facility for regulatory submissions on a graduate an
Slide 21: Research & Development
Research & Development Focus on differentiated product development and improve productivity Continue to work on better technologies & capabilities Strengthen processes, improve productivity Quality by Design Differentiated product development e.g. Isotretenoin Work towards global leadership on key
Slide 22: Manufacturing
Manufacturing Manufacturing facilities in 8 countries including Developed and Emerging markets serve larger market requirements; Utilization and productivity improvement to drive performance USA Romania Ireland Malaysia India South Africa Nigeria Morocco • Optimum capacity utilization and productivi
Slide 23: Daiichi Sankyo Partnership
1 Overview 2 3 Organizational Global Presence Priorities Mission Gx Business Business, R&D & Key Milestones Advantages Manufacturing 5 6 Corporate 4 Past Financials Governance Daiichi Sankyo Shareholding Partnership Share pattern Performance CSR 7 Long Term Value Drivers Challenges & Daiichi Sankyo
Slide 24: Daiichi Sankyo Partnership: Strategic Synergies
Daiichi Sankyo Partnership: Strategic Synergies Ranbaxy-Daiichi Sankyo synergies run across the entire value chain of each Company Innovator Generic Company Company 1. Access to high growth, high volume markets 1. Access to advanced competencies and capabilities 2. Access to low cost R&D and Manufac
Slide 25: Daiichi Sankyo Partnership: Functional Synergies
Daiichi Sankyo Partnership: Functional Synergies Hybrid Business Model: Some examples of synergies delivered thus far Manufacturing: API: Availability & Cost efficiency DF: Availability to DS Espha and DS Front end 25
Slide 26: Daiichi Sankyo Partnership
Daiichi Sankyo Partnership Hybrid Business Model: Examples of marketing synergies Romania/ 2009/10: Thailand/ 2013: Launched Evista®, Tavanic® DS to be front-end Gx & Brand business Japan/ 2010: DS to be front-end for the business Malaysia/ Singapore/ Mexico/ 2011: 2011: DS to be front-end Launched
Slide 27: Past Financials, Share Performance
1 Overview 2 3 Organizational Global Presence Priorities Mission Gx Business Business, R&D & Key Milestones Advantages Manufacturing 5 6 Corporate 4 Past Financials Governance Daiichi Sankyo Shareholding Partnership Share Pattern Performance CSR Past Financials 7 Long Term Value Share Drivers Perfor
Slide 28: Key Financial Numbers and Ratios
Key Financial Numbers and Ratios Past financial performance 4 yr ($ Mn) 2009 2010 2011 2012 CAGR Net Sales 1,519 1,868 2,112 2,310 15% EBITDA 121 402 335 353 42% EBITDA Margin 8% 22% 16% 15% EBT from ordinary activities 131 399 218 288 30% EBT from ordinary activities as a % of sales 9% 21% 10% 12%
Slide 29: Share Price Performance
Share Price Performance Ranbaxy share movement vis-à-vis Sensex 29
Slide 30: Corporate Governance, Shareholding Pattern, CSR
1 Overview 2 3 Organizational Global Presence Priorities Mission Gx Business Business, R&D & Key Milestones Advantages Manufacturing Corporate 4 5 6 Governance Past Financials Daiichi Sankyo Shareholding Partnership Share Pattern Performance Corporate CSR Governance 7 Long Term Value Shareholding Dr
Slide 31: Corporate Governance
Corporate Governance Robust corporate governance system monitors and controls the internal functioning of Ranbaxy The institutionalized Reporting and Code of framework of Corporate Disclosures Conduct Governance and Code of Practices strengthen Board decision making and procedures compliance with et
Slide 32: Board of Directors
Board of Directors The Board of Ranbaxy has a mix of diverse experience and strong Independent Directors Dr. Tsutomu Une, Chairman Dr. Anthony H. Wild 1970: Joined Daiichi. Till 2007: Chairman of MedPointe. 1999: Inducted on Daiichi's BoD. Has held senior leadership 2002-06: Served as Daiichi's MD.
Slide 33: Sub-Committees under the Board of Directors
Sub-Committees under the Board of Directors A robust Corporate Governance system in place Audit • Includes 4 Independent Directors, Chairman and MD Committee • Reviews Financials; Oversees Financial Reporting processes • Reviewing Internal Audit Function’s plans and reviewing efficacy of the functio
Slide 34: Shareholding Pattern
Shareholding Pattern Ranbaxy shareholders are primarily large institutions 34
Slide 35: Corporate Social Responsibility
Corporate Social Responsibility Social Commitment and Public Service is deeply embedded into the cultural fabric of Ranbaxy • ‘Ranbaxy Community Health Care Society’ set up in 1978; earlier known as Ranbaxy Rural Development Trust • CSR covers areas of maternal child health, family planning, adolesc
Slide 36: Long Term Value Drivers, Challenges & Opportunities
1 Overview 2 3 Organizational Global Presence Priorities Mission Gx Business Business, R&D & Key Milestones Advantages Manufacturing 5 6 Corporate 4 Past Financials Governance Daiichi Sankyo Shareholding Partnership Share Pattern Performance CSR Long Term Value 7 Drivers Long Term Value Drivers Chal
Slide 37: Long term value drivers
Long term value drivers Continued Sustainable profitable growth Branded Generics Focus Sustainable profitable growth • Create brands • Re-align structure; focus on larger, differentiated market Leadership in key, chosen molecules End to end strength in key, chosen molecules • End to end dominance in
Slide 38: Challenges & Opportunities
Challenges & Opportunities Sustainable profitable growth Opportunities Invest in growth: brands and markets Re-focus on: efficiency, productivity and utilization Challenges Government policies: e.g. CIS, Europe Consent decree and optimum utilization of capacities 38
Slide 39: Contact Details
Contact Details Investor Relations Ranbaxy Laboratories Limited Plot # 90, Sector 32 Gurgaon, Haryana, 122001. Email: umang.khurana@ranbaxy. com Phone: +91-124-413-5208 NSE: RANBAXY BOM: 500359 Reuters: RANB.NS / RANB.BO Bloomberg: RBXY:IN Website: http://www.ranbaxy.com Some of the major Analysts T
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