23 slides from Wuxi Apptec Co., Ltd. Class A's earnings presentation, Oct 29, 2024
Slide 1: Third Quarterly 2024 Results
WuXi AppTec Third Quarterly 2024 Results October 29, 2024 1 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain certain statements that are or may be forward looking, which can be recognized by the use of words such as “expects”, “plans”, “will”, “estimates”, “projects”, “intends”, or words of similar meaning. Such forward-looking statements are not his
Slide 3: Results Overview, Segment Performance, Financial Performance, Company Outlook
01 Results Overview 02 Segment Performance 03 Financial Performance 04 Company Outlook 3 Note: Unless otherwise stated, 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
Slide 4: 1. Results Overview
1. Results Overview 4
Slide 5: Q3 2024 Revenue & Profit Continued Steady QoQ Growth as Expected
Q3 2024 Revenue & Profit Continued Steady QoQ Growth as Expected: Revenue Up 13.0% Back to RMB 10+ Billion, and Adjusted Non-IFRS Net Profit Up 20.9% Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion +16.0% +13.0% +28.5% +20.9% 10.46 9.26 7.98 2.97 2.46 1.91 Q1 2024 Q2 2024 Q3 2024 Q1 202
Slide 6: Q3 2024 Revenue Up 14.6% YoY Excluding COVID-19 Commercial Projects
Q3 2024 Revenue Up 14.6% YoY Excluding COVID-19 Commercial Projects Despite External Challenges; Maintaining Stable Operations in Q1-Q3 2024 Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion -6.2% +4.6%1 -10.1% excluding COVID-19 commercial projects 29.54 27.70 Q3 10.67 10.46 +14.6%1 8.17
Slide 7: Continue to Serve as a Highly-Efficient Enabler to the Industry
Continue to Serve as a Highly-Efficient Enabler to the Industry, Create Value for Global Customers and Bring Groundbreaking Therapies to Patients As global demand for life saving and innovative drugs continues to grow, customer demand for our integrated services continues to grow ⚫ 800+ new customer
Slide 8: Diversified Revenue Streams from Customers Across Regions
Diversified Revenue Streams1 from Customers Across Regions Ensure the Stability and Resilience of the Company’s Financial Performance RMB billion China Europe 5.16Bn，-3.9% 3.53Bn，+14.8% Revenue contribution: 19% US Revenue contribution: 13% 17.62Bn， excluding COVID-19 commercial projects + 7.6% Reve
Slide 9: 2. Segment Performance
2. Segment Performance ze S| od
Slide 10: WuXi Chemistry: CRDMO Business Model Drives Continuous Growth
WuXi Chemistry: CRDMO Business Model Drives Continuous Growth; Q3 2024 Revenue Achieved Positive YoY Growth, and Up 26.4% YoY Excluding COVID-19 Commercial Projects Revenue & Gross Profit Margin CRDMO Business Model Drives Continuous Growth ⚫ Despite external challenges, WuXi Chemistry Q3 revenue up
Slide 11: WuXi Chemistry: Growing Small Molecule CRDMO Pipeline
WuXi Chemistry: Growing Small Molecule CRDMO Pipeline Driven by “Follow the Molecule + Win the Molecule” Strategies “R” 7%↑ Q1-Q3 2024 450,000+ Compounds 1 Newly Added Molecules in Total 915 898 2,852 Preclinical & Phase I 14 357 Phase II 1 79 Phase III 20 Commercial & Phase III Projects 2 Added in
Slide 12: TIDES: Business Maintained Rapid Growth with Fast Increasing Capacity
TIDES: Business Maintained Rapid Growth with Fast Increasing Capacity TIDES Revenue Solid Phase Peptide Synthesizer Total Reactor Volume Further RMB billion Liter increase 41,000 >60% 32,000 3.41 2.04 Q1-Q3 3.55 6,000 0.79 4,000 0.30 500 2,000 2020 2021 2022 2023 2024E 2019 2020 2021 2022 2023 2024E
Slide 13: WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leading Positions
WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leading Positions Lab Testing Services Revenue & Gross Profit Margin ⚫ Q1-Q3 revenue of lab testing services down 7.9% YoY to 3.26bn, with Q3 revenue up 5.5% QoQ. Among which, Q1-Q3 revenue of drug safety RMB billion evaluation service down
Slide 14: WuXi Biology: New Modality Business Drives Growth
WuXi Biology: New Modality Business Drives Growth; WuXi Biology Platform Continues to Generate Downstream Opportunities Revenue & Gross Profit Margin New Modality Business ⚫ Focused on improving capabilities related to new modalities, Q1-Q3 RMB billion revenue from new modalities grew 6.0% YoY, cont
Slide 15: WuXi ATU: Currently Assessing Options for Continuing Operations
WuXi ATU: Currently Assessing Options for Continuing Operations and Avoiding Impact on Patients due to Proposed U.S. Legislation Revenue & Gross Profit Margin RMB billion Project Pipeline Progress ⚫ Q1-Q3 revenue and GPM down YoY, primarily due to: 1) high-margin Adjusted Non- IFRS GPM -6.1% -29.7%
Slide 16: WuXi ATU: Advancing Pipeline on the Globally Integrated CTDMO Platform
WuXi ATU: Advancing Pipeline on the Globally Integrated CTDMO Platform Testing CAR-T | TIL | MSC Cells AAV | LVV | TESSA US | EU | CN 45 Preclinical & Phase I 8 Phase II Including 1 Project 4 Phase III in BLA Preparation Stage 1 Commercial Project Added 2 Commercial in Q1-Q3 2024 16
Slide 17: 3. Financial Performance
3. Financial Performance 17
Slide 18: Continuously Improve Operating Efficiency and Maintain Resilient Profit Margin
Continuously Improve Operating Efficiency and Maintain Resilient Profit Margin Adjusted Non-IFRS Net Profit Attributable to Adjusted Non-IFRS Gross Profit Adjusted Non-IFRS GPM* the Owners of the Company Adjusted Non-IFRS NPM RMB MM RMB MM 40.0% 40.3% 38.0% 38.7% 42.0% 42.3% 40.9% 18.0% 22.0% 22.4%
Slide 19: Sustained Positive FCF Driven by Business Growth & Operating Efficiency
Sustained Positive FCF Driven by Business Growth & Operating Efficiency Operating Cash Flow Growth Continued to Outpace Revenue Growth; Q1-Q3 2024 Operating Cash Flow Up 10.4% YoY Excluding COVID-19 Commercial Projects; Free Cash Flow Achieved RMB 5.56 Billion RMB MM Capital Expenditure 1 12,641 Ope
Slide 20: 4. Company Outlook
4. Company Outlook i ls Be 3)
Slide 21: Update on Proposed U.S. Legislation
Update on Proposed U.S. Legislation The Company has learned that, on September 9, 2024, the U.S. House of Representatives voted to pass draft bill H.R.8333, which is the current House version of the Biosecure Act. The bill includes a designation of the Company as a “biotechnology company of concer
Slide 22: Update on Proposed U.S. Legislation
Update on Proposed U.S. Legislation The Company strongly disagrees with any preemptive and unfair designation of us as a named “biotechnology company of concern” without due process. The Company fully complies with the laws and regulations in the countries and regions in which we operate, and is w
Slide 23: Company Outlook
Company Outlook Our unique integrated CRDMO business model can effectively meet the growing demand of customers worldwide. It enables the Company to closely follow scientific innovations, develop 1 distinct industry insights, instantly seize opportunities in new molecules as they rise, and continue