Jb Chemicals & Pharmaceuticals Ltd. · NSE:JBCHEPHARM
Jb Chemicals & Pharmaceuticals — Q2 & H1 FY22 Earnings Presentation
37 slides from Jb Chemicals & Pharmaceuticals's earnings presentation, Nov 11, 2021
Slide 1: Investor Presentation cover letter to NSE
" J. B. CHEMICALS & PHARMACEUTICALS LIMITED A November 11, 2021 National Stock Exchange of India Limited Exchange Plaza, 5" Floor, Plot No. C/I, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. Stock Symbol: JBCHEPHARM Dear Sir, Subject: Investor Presentation Enclosed please find the presen
Slide 2: Q2 & H1 FY22 Financial Results
Q2 & H1 FY22 FINANCIAL RESULTS November 2021
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: Agenda
Company Overview 4 Q2 & H1 FY22 Financial Performance 12 JBCPL – One Year Journey 22 Way Forward 33 3
Slide 5: Company Overview
¢ - ef ce °/ = t J.B. CHEMICALS & PHARMACEUTICALS LTD. Company Overview N
Slide 6: Company 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 7: Financial track record 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 6 Financial Year ends on 31st March Business-wise Revenue (INR cr) 86 24 224 FY21 892 817 Domestic
Slide 8: Kohlberg Kravis Roberts & Co. (KKR) overview
o Kohlberg Kravis Roberts & Co. L.P. (“KKR”) is a leading global investment firm with industry-leading investment experience, in-depth industry knowledge, sophisticated processes for growing and improving Recent Transactions in businesses, and a strong culture committed to teamwork Pharmaceuticals/H
Slide 9: KKR recent transactions in pharmaceuticals/healthcare
Biopharmaceuticals Medical Devices Providers Other Services Life Sciences Tools/Diagnostics Includes investments made by KKR’s Private Equity, Growth Equity, and Core Investment Strategies, as well as the KKR Balance Sheet and KKR Managed SMAs. The specific investments identified are not representat
Slide 10: Consistent Outperformance in Covered Markets
Among the fastest Leadership Brands have growing pharma position consistently companies in the covered recorded market Vs market growth market share in No of brands markets beating growth of 18%* 5 molecule in Top 300 categories * MAT Sep 21 growth Increasing Contribution from Chronic Therapies (MAT
Slide 11: International business: formulations, APIs, CMO
Intl Formulations* CMO* APIs* Intl Formulations* CMO* APIs* 72 % 20 % 8% 73 % 20% 7% FY21 International H1 FY22 International Business Revenues 817 224 86 Business Revenues 427 115 39 INR 1,127 crore INR 581 crore * Contribution to international business * Contribution to international business Inte
Slide 12: Manufacturing facilities and global regulatory accreditations
Seven state-of-the-art manufacturing facilities in Western India Over 40 global regulatory accreditations US FDA EU – GMP HEALTH – Canada SAHPRA – South Africa MHRA – UK TGA – Australia MOH – Russia Producing a wide array of dosage forms 11
Slide 13: Q2 & H1 FY22 Financial Performance
Q2 & H1 FY22 Financial Performance 12
Slide 14: CEO views on Q2 FY22
“Our strong operational performance has led to market beating growth in India and steady performance in international business despite pandemic-related issues and supply chain uncertainties. During the past one year, several initiatives, including the re-aligned Go-To-Market model, diversification i
Slide 15: Revenues and revenue split
Revenues (INR cr) o Sustained revenue momentum continued in the second quarter even though the second COVID wave subsided. 18%** 17%** • **After considering the revenue which got deferred to Q3 FY21 from Q2 FY21 in the previous financial year, 1,199 the sales growth was strong at 18% for Q2 FY22 and
Slide 16: EBITDA reconciliation: reported, operating and adjusted
INR crore Q2 FY22 H1 FY22 Revenue 593 1199 Reported EBITDA 127 290 Non Cash ESOP Cost 13 13 Included in Employee Benefits expense Operating EBITDA 140 303 (excluding ESOP Cost) Operating EBITDA Margin 23.6% 25.3% One time consultancy/advisory 14 14 Included in Other Expenditure services Adjusted EBI
Slide 17: Operating EBITDA and Profit After Tax
Op. EBITDA* (INR cr) Margin (%) 27.5% 26.4% o Gross Margin profile continues to be healthy at 65% in Q2 FY22 26.0% 25.3% • Inflation witnessed in API prices, managed through cost 24.8% optimization initiatives. 23.6% 303 317 266 • Headwinds in material costs are likely to continue in H2 110 140 154.
Slide 18: Domestic Formulations performance
o As per IQVIA, Domestic Formulations business recorded YoY Domestic Formulations* (INR cr) growth of 32 % in Q2 FY22 and 33% H1 FY22 o As per MAT Sep 21 IQVIA data, Domestic Formulations business 38 % 39 % continued to outpace industry growth, witnessing strong growth across big brands 609 438 Ra
Slide 19: International business performance
International Business** (INR cr) o South Africa recorded strong growth in both public and private markets • JBCPL’s South Africa subsidiary is now ranked #15 in the 36 % 16 % overall industry, moving up 10 ranks within a year o Russia/CIS region rebounded well in the second quarter, gaining 581 501
Slide 20: Profit and loss statement
Particulars (In INR Cr.) Q2 FY22 Q2 FY21 YoY Growth H1 FY22 H1 FY21 YoY Growth Sales (Net) 589.2 437.0 35% 1189.5 952.1 25% Operating Income 3.8 6.6 -42% 9.5 13.7 -30% Revenue from Operations 593.0 443.6 34% 1199.0 965.8 24% Cost of Goods Sold 207.5 133.8 55% 424.1 320.1 32% Gross Profit 385.5 309.7
Slide 21: Balance sheet
Balance Sheet (INR Cr) Sep-21 Mar-21 o Company continues to generate healthy cash flows ; Net Net Worth 1,983 1,813 Cash Position is INR 741 crs as on Sep 30, 2021 Other Liabilities 217 206 o Net Working capital sustained in number of days, marginal increase in inventory to ensure supply security To
Slide 22: Net cash, working capital and operating cash flow
Net Cash Position (INR cr) Working Capital (INR cr) Working Capital (# days) 741 104 663 97 98 98 93 644 455 550 424 392 435 452 404 FY18 FY19 FY20 FY21 H1 FY22 FY18 FY19 FY20 FY21 H1 FY22 Operating Cash Flow (INR cr) 315 275 194 137 123 77 FY18 FY19 FY20 FY21 H1 FY22 H1FY21 21
Slide 23: JBCPL 1-year Journey
J.B. CHEMICALS & PHARMACEUTICALS LTD. JBCPL 1-year Journey... N
Slide 24: Business growth, productivity improvement, stronger governance
1 2 3 BUSINESS GROWTH PRODUCTIVITY IMPROVEMENT STRONGER GOVERNANCE Growth objectives supported Therapy diversification in Continuous thrust on by new management layer A line with core strengths for A improving productivity & A and strong governance Domestics Formulations cost structure framework Pro
Slide 25: Revised GTM structure and new therapy areas
1 A Implemented revised GTM structure across 2,100+ sales force; focused on sales force productivity (PCPM) improvement Entered new therapy areas (Diabetes, Nephrology, Respiratory and Allergy) and launched three new divisions Launched over 15 new products in the last one year Prescription* rank imp
Slide 26: Key product launches in the past year
1 A Launched 15 new products in the past one year Nintabid DAPACOSE - M JBTOR Metrogyl-O Viscojoy Respiratory Diabetes Diuretics(CKD/CHF*) Antibiotic Respiratory Pic Pic Key product launches… * CKD – Chronic Kidney Disease / CHF - Congestive Heart Failure 25
Slide 27: Sales force automation and in-clinic effectiveness
1 A Thrust on sales force automation – full coverage iPad roll out Increased in-clinic effectiveness through Closed Loop Marketing initiatives driven by data and insights Numerous Knowledge sharing initiatives for patients, HCPs and paramdedics Increased focus on medical-based evidence studies to in
Slide 28: Fastest growing company in IPM top 30
1 A JBCPL is the fastest growing company in the top 30 in IPM; MAT growth of 28% vs CVM growth of 16% and IPM growth of 18% 27 *CVM – covered market (as per IQVIA definition); MAT – moving annual total; IPM – Indian Pharmaceutical Market
Slide 29: Contract manufacturing growth levers
1 B Contract Manufacturing Growth Levers Deeper penetration with existing customers: explore new Top 5 manufacturer of medical/herbal lozenges with opportunities in more geographies significant market opportunity Projects also focused on syrups, tablets, ointments Expand focus on high-potential loze
Slide 30: R&D and life cycle management
1 C Life cycle management and incremental innovations for India Business i.e. Nicardia XL New systems Enhanced Building progressive product and procedures learning and portfolio for ROW markets in place for development product initiatives for (25+ products identified) development R&D personnel Ongoi
Slide 31: Structured organizational cost-efficiency programs
2 A Structured organizational programs aimed at improving cost- efficiency while maintaining supply Cost rationalization and service levels exercise with primary focus on direct cost reduction Introduced progressive programs in manufacturing and sales to increase productivity 30
Slide 32: International markets: Russia, South Africa, United States
2 B o Launched two new products in Russia o Expanded OTC presence – Cough & Cold, Respiratory, Russia Gastro o Accelerated filings and in-licensing opportunities o Stronger visibility in private markets South Africa o Expanded Gx presence via portfolio augmentation o Focus on site variations for bet
Slide 33: Building capability and a high-performance culture
3 A BUILDING CAPABILITY AND A HIGH- PERFORMANCE CULTURE AT JBCPL Performance driven Employee safety, New performance culture wellbeing and management system •Creating an atmosphere where engagement •KRAs aligned with overall employees are focused on •Multiple initiatives to drive strategy. Inculcate
Slide 34: Way Forward
J.B. CHEMICALS & PHARMACEUTICALS LTD. Way Forward
Slide 35: Current position and medium-term objectives
CURRENT POSITION MEDIUM-TERM OBJECTIVE IPM Position Ranked in IPM Top 30 companies Ranked in IPM Top 20 companies Contribution from ~45% of Domestic sales ~60% of Domestic sales Chronic Therapies At least 1 to 2 new brands in Top 5 brands in Top 300 across 3 Portfolio of Top Brands 300 therapies acr
Slide 36: Growth priorities going forward
Domestic: nurture big brands; drive 8-10 progressive new launches every year; sales force productivity enhancement International: growth driven by portfolio augmentation (commercialization of R&D pipeline and dossier acquisitions) Achieve scale in Lozenges through new introductions and addition of m
Slide 37: 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
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