Ibnsina Pharma · EGX:ISPH
Ibnsina Pharma — Investor Presentation (January 2018)
28 slides from Ibnsina Pharma's investor presentation, January 2018
Slide 1: Investor Presentation
Investor Presentation January 2018 Egypt’s fastest growing pharmaceutical distributor 2nd largest pharmaceutical distributor with a market share of c.19.2% Over 35k clients served annually through a network of 55 operational sites and a fleet of c.600 vehicles 5-year revenue CAGR of 31% compared to
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT CONTAINS STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, “FORWARD-LOOKING STATEMENTS” WHICH ARE NOT HISTORICAL FACTS BUT RATHER ARE STATEMENTS OF FUTURE EXPECTATIONS AND PROJECTIONS BASED ON MANAGEMENT’S VIEWS AND ASSUMPTIONS REGARDING TRENDS IN THE EGYPTIAN, MIDDLE EASTERN, EU
Slide 3: Agenda
Agenda I Introduction to the Company II Key Investment Highlights III Appendix IV Contact Information 3
Slide 4: Introduction to the Company
Contents Introduction to the Company 4
Slide 5: The Company in numbers
II Introduction to the Company The Company in numbers 17+ years Experience in pharmaceutical distribution #1 Growing pharmaceutical distributor in Egypt 2nd Largest pharmaceutical distributor with c.19.2% market share¹ in 2017 Over 35k Retail pharmacies, hospitals & wholesalers served annually Over
Slide 6: Ibnsina Pharma, Egypt's fastest growing pharmaceutical distributor
II Introduction to the Company Ibnsina Pharma, Egypt’s fastest growing pharmaceutical distributor… Company Overview Market Share¹ Established in 2001, Ibnsina Pharma “ISP” is the fastest growing, and 2nd largest, pharmaceutical distributor in Egypt with a market share of c.19.2% Nationwide distribut
Slide 7: …with a proven track record of success…
II Introduction to the Company …with a proven track record of success… 2015 Expansion: 2009-2012 Launch: 2001-2005 Investment to add 15 distribution Established in 2001 under the name centers & 5 offices, and enhance “Ibnsina Laborex” in partnership with efficiency through standardizing Pinault Prin
Slide 8: …leveraging a nationwide distribution network to access over 35k clients
II Introduction to the Company …leveraging a nationwide distribution network to access over 35k clients Distribution Network Revenue by Geography Revenue by Business Line 5 Platforms (Inbound Logistics) 42 Distribution Centers (DC) 3.0% 0.3% 3.0% 11.1% 1 Tender DC 2 Reverse Logistics Warehouses 9.0%
Slide 9: Key Investment Highlights
Key Investment Highlights 9
Slide 10: Key Investment Highlights
III Key Investment Highlights Key Investment Highlights 1 Solid Demographic A rapidly growing population coupled with a growing middle class and increasing healthcare awareness, positions Egypt Profile as one of the most attractive consumer markets in the region 2 Attractive Industry A highly defens
Slide 11: Solid Demographic Profile
III Key Investment Highlights 1 Solid Demographic Profile Egypt’s demographic profile makes it the region’s largest consumer market Population I mn Age Pyramid Urban Population Disposable Income | EGP bn Population (mn) Growth Rate Egypt has seen a growth in health awareness on the back of a growing
Slide 12: Attractive Industry Dynamics
III Key Investment Highlights 2 Attractive Industry Dynamics A highly defensive sector with significant room for continued growth Health Expenditure CAGR 2013-2017 Pharmaceutical Sales | EGP bn Total Number of Pharmacies | ‘000 Given the under-penetration of healthcare insurance, pharma sales are 60
Slide 13: Strong Market Share
III Key Investment Highlights 3 Strong Market Share Exceptional profitable growth on the back of a solid value-based differentiation strategy ISP is the fastest growing distributor in the Egyptian market Sales¹ CAGR 2012-2016 33% 31% 31% 32.7% 32.9% 29% 25% 19.2% 2011 9.9% 2017 21% Others Others 43.
Slide 14: Efficient Business Model
III Key Investment Highlights 4 Efficient Business Model Operational efficiency driven by best-in-class supply chain processes Distribution Value Chain Overview Sourcing Processing Distribution Commercial team sources orders from 325+ suppliers Over 200 platform operations employees handle and Dynam
Slide 15: Resilient Supply Chain
III Key Investment Highlights 5 Resilient Supply Chain Highly diversified supplier/client base significantly mitigating supply chain risks Geographic Concentration¹ Supplier Concentration¹ SKUs Coverage¹ Sanofi Alexandria Alexandria Cairo & Canal Aventis 7% Distributed 11% Cairo & Canal 11% 30% Amou
Slide 16: Robust Financial Performance
III Key Investment Highlights 6 Robust Financial Performance Robust financial performance with double digit top line and bottom line growth Revenue | EGP mn Gross Profit | EGP mn, % EBITDA & Margin | EGP mn, % CAGR 31% CAGR 35% CAGR 39% 10.0% 9,134 9.0% 7,372 8.2% 8.0% 7.7% 3.7% 7.2% 7.3% 6.8% 6.8%
Slide 17: Robust Financial Performance
III Key Investment Highlights 6 Robust Financial Performance Effective working capital management has been a key success factor to ISP’s performance DOH 2014 2015 2016 September 20161 September 20171 Inventory 35… 35 Days 32… 32 Days 2… 29 Days 3… 30 Days 32 3…Days Receivables 85 Days 85 Days 83 Day
Slide 18: New Revenue Streams
III Key Investment Highlights 7 New Revenue Streams Expansion into high-margin diversified revenue streams to further enhance profitability Warehousing Transportation Owned Portfolio Warehousing services for suppliers which allows them to Capitalizing on a growing need for specialized ISP is plannin
Slide 19: Experienced Management Team
III Key Investment Highlights 8 Experienced Management Team Highly experienced management team with strong track record 28 years of pharmaceutical industry experience with focus on commercial operations, IT, quality assurance and administration. Mahmoud Abdel Gawad Prior to Ibnsina, Mahmoud held sev
Slide 20: Experienced Management Team
III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries Over 40 years of experience across various industries including healthcare, FMCG, and financial services with focus on all investment activities pursued by the Co
Slide 21: Experienced Management Team
III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries 28 years of pharmaceutical industry experience with focus on pharmaceutical sales. Ahmed Abdel Gawad Ahmed has held various sales positions at multinational compa
Slide 22: Organizational Structure
III Key Investment Highlights 8 Experienced Management Team Organizational Structure Board Committees Executive Chairman Management Committees Mohsen Mahgoub Audit Committee Executive Committee Business Development Committee Board of Directors Business Review Committee Remuneration Committee Investm
Slide 23: Appendix
ze < Appendix
Slide 24: Barriers to Entry
IV Appendix A significantly complex industry with high barriers to entry Barriers to Entry Operational Complexity Inventory A Variety of High Variability of Labor Intensive Geographically Management SKUs Demand Business Dispersed Client Base Highly complex inventory 9k unique drug therapies Short-no
Slide 25: Income Statement
IV Appendix Income Statement In EGP 2014 2015 2016 9M16 9M17 Gross Revenue 4,301,431,071 5,437,428,208 7,368,955,861 5,110,598,478 6,872,056,337 Net Revenue 4,197,291,157 5,326,037,025 7,202,471,767 5,004,538,429 6,715,209,995 Cost of Revenue (3,889,571,576) (4,931,515,024) (6,636,864,499) (4,584,67
Slide 26: Balance Sheet
IV Appendix Balance Sheet In EGP 2014 2015 2016 9M16 9M17 Cash & Cash Equivalent 16,367,823 32,865,900 43,879,849 31,521,034 193,453,075 Accounts & Notes Receivable 1,127,421,416 1,379,306,986 1,946,303,807 1,889,197,939 2,201,244,241 Inventories 427,636,583 456,212,484 614,350,464 581,707,431 887,2
Slide 27: Contact Information
Contents 1 Executive Summary 2 Company Overview 3 Key Investment Highlights 4 Financial Performance Review 5 Contact Information Contact Information 27
Slide 28: Contact Information
V Contact Information Contact Information Mohamed Mahmoud Shawky Investor Relations Manager Tel.: +2010 00852771 Email: shawky@Ibnsina-pharma.com 28
Ibnsina Pharma — Investor Presentation (January 2018) on 6ix