Wuxi Apptec Co., Ltd. Class A · SSE:603259
Wuxi Apptec Co., Ltd. Class A — Q1 2022 Earnings Presentation
35 slides from Wuxi Apptec Co., Ltd. Class A's earnings presentation, Apr 26, 2022
Slide 1: First Quarter 2022 Results
WuXi AppTec First Quarter 2022 Results April 26, 2022 1 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
“ Forward-Looking Statements This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we belie
Slide 3: Results Overview Business Highlights Financial Performance
01 Results Overview 02 Business Highlights 03 Financial Performance 04 Growth Outlook Notes: All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). 3 The unit of currency is RMB.
Slide 4: Results Overview
1. Results Overview 4
Slide 5: Strong Revenue & Profit Growth in First Quarter 2022
Strong Revenue & Profit Growth in First Quarter 2022 Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion 8.47 +71.2% +85.8% 2.05 4.95 1.10 2021Q1 2022Q1 2021Q1 2022Q1 Net Profit Net Profit After Deducting Non-Recurring Items RMB billion RMB billion 1.71 +9.5% 1.64 +106.5% 0.83 1.50 5 2021Q1
Slide 6: Consistent Revenue Growth Quarter after Quarter
Consistent Revenue Growth Quarter after Quarter +32.8% RMB billion 8.5 +6.6% +7.1% +12.8% +4.9% +3.0% +13.3% 6.4 +26.9% 6.0 +6.2% 5.6 +8.3% +12.9% -11.3% 5.0 +7.2% +2.8% 4.6 4.7 +10.8% +5.8% 4.0 3.6 3.4 3.1 3.2 2.7 2.8 2.5 2.1 2.3 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2
Slide 7: Accelerating Growth on Back of CRDMO/CTDMO Business Model
Accelerating Growth on Back of CRDMO/CTDMO Business Model Follow the Molecule – Follow the Customer – Follow the Science / Technology +65-70% RMB billion Est. 22.9 16.4 16.5 12.9 9.5 7.8 6.2 4.9 3.4 3.8 2.6 3.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E WX Chemistry WX Testing WX
Slide 8: 2022Q1 Business Highlights
2022Q1 Business Highlights “Long-Tail” Strategy Global Footprint 320+ New Customers 31 Global Sites & Branch Offices 5,800+ Active Customers 36,997 Total Employees Loyal Customer Base 34,179 Scientists & Technicians 100% Retention of Our Top 10 Customers Success Based Projects Small Molecule CRDMO 2
Slide 9: Our Platform & Business Model Continued to Perform Well
Our Platform & Business Model Continued to Perform Well Strong, Loyal & Execute Long-Tail Strategy Increase Customer Expanding Customer & Increase Support to Conversion to Sustain Base Large Pharma Growth Revenue composition Revenue composition Revenue composition Existing clients contributed Top 20
Slide 10: Strong Revenue Growth from Customers Across All the Regions
Strong Revenue Growth from Customers Across All the Regions China Europe 1.59bn, +37% 1.22bn, +83% Revenue contribution: 19% Revenue contribution: 14% US 5.28bn, +84% Revenue contribution: 62% Others, Japan, Korea & Others 5% 0.39bn, +51% China, Europe, 19% 14% Revenue contribution: 5% Revenue break
Slide 11: Continue to Attract, Train and Retain Talent to Support Rapid Growth
Continue to Attract, Train and Retain Talent to Support Rapid Growth Rapid Expansion of Talent Base 36,997 2,104 36997 34912 Total Employees ending Overseas Mar 31 2022 Employees 26411 21744 17730 30,190 3,989 14763 Research Manufacturing Employees Employees PhD, 1,245, 3% 2017 2018 2019 2020 2021 2
Slide 12: ESG Recognition and Target by 2030
ESG Recognition and Target by 2030 MSCI ESG Ratings in 2021: AA The first company with AA ratings among all A-share listed companies in healthcare industry Member of Dow Jones Sustainability Indices (2021) Top Rated in Sustainalytics (2022) Target by 2030 as compared to 2020 25% 25% 30% Carbon Emiss
Slide 13: Business Highlights
2. Business Highlights Z ls Ban. =|
Slide 14: WuXi Chemistry: strong demand drives growth, target double revenue in 2022
WuXi Chemistry: strong demand drives growth, target double revenue in 2022 Development and Financial Performance Drug Discovery (R) Manufacturing (D&M) Capacity Expansion Revenue growth of 102.1% YoY to Revenue of discovery service Revenue of development and Capacity expansion continued to g
Slide 15: WuXi Chemistry: Growing CRDMO Pipeline
WuXi Chemistry: Growing CRDMO Pipeline 334,936 compounds* “R” Total 217 new 5,525 compounds “R+” molecules in 22’ Q1 207 1,446 Preclinical & Phase I 10 “D” 271 Phase II 49 Phase III 42 “M” Commercial Note: 15 1. 334,936 individually synthesized compounds in the past 12 months until March, 2022. 2. 5
Slide 16: WuXi Chemistry: Strong Revenue Growth
WuXi Chemistry: Strong Revenue Growth Revenue (RMB Million) +102.1% 6,118 4,010 3,399 3,651 3,027 21'Q1 21'Q2 21'Q3 21'Q4 22'Q1 16
Slide 17: WuXi Chemistry: Global Development and Manufacturing Footprint and Capacity Expansion
WuXi Chemistry: Global Development and Manufacturing Footprint and Capacity Expansion China United States Switzerland DS DP DS DS NM DS DP DP DP Shanghai Waigaoqiao Shanghai Jinshan Changzhou, Jiangsu San Diego, CA Middletown, DE Couvet, Neuchâtel 68,800 𝒎𝟐 78,500 𝒎𝟐 215,500 𝒎𝟐 2,700 𝒎𝟐 New…
Slide 18: WuXi Testing: fast growth in lab testing, to continue past growth trajectory in 2022
WuXi Testing: fast growth in lab testing, to continue past growth trajectory in 2022 Financial Performance Lab Testing Services Clinical CRO SMO Revenue growth of 31.7% YoY Revenue from lab testing Revenue of clinical CRO and SMO maintained #1 leadership to 1.28bn services grew 39.9% YoY to
Slide 19: WuXi Testing Growth Highlights
WuXi Testing Growth Highlights Growing Lab Capacity 1 Leverage Preclinical Opportunities new capacity in Chengdu and Nanjing delivered in 2021 • new capacity under construction for mid 2023 delivery WIND TOX IND Robust Supply Chain • Animal resource and supply ready and aligned with contracts • Busi
Slide 20: WuXi Biology: new modalities drive growth, to continue past growth trajectory in 2022
WuXi Biology: new modalities drive growth, to continue past growth trajectory in 2022 Financial Performance Discovery Biology New Modalities DNA Encoded Library We have the largest discovery We continue to build new biology We have a leading DNA Encoded Revenue growth of 26.2% YoY biology en
Slide 21: Biology Capability Building and Business Growth in New Modalities
WuXi Biology Capability Building and Business Growth in New Modalities +110% YOY 17.6% of total revenue in 2022Q1 (14.6% in 2021) In-vitro/In-vivo Biology Research Service for New Modalities • PROTAC ® / Molecular Glue / Target Protein Degradation • Nucleic acid based modality (Oligo / RNA / ASO) •
Slide 22: WuXi ATU: to see turning point in 2022, target growth quicker than industry
WuXi ATU: to see turning point in 2022, target growth quicker than industry Financial Performance Projects AAV - TESSA Launched TESSA™ in March 2022. Revenue grew 37.0% to 0.30bn. We focused on improving our TESSA™ is a revolutionary novel Adjusted Non-IFRS gross profit CTDMO integrated enab
Slide 23: WuXi ATU: Growing Pipeline on Our Integrated CTDMO Platform
WuXi ATU: Growing Pipeline on Our Integrated CTDMO Platform Testing Cell Therapies Gene Therapies CAR-T | TIL | Stem Cells AAV | LENTI | TESSA | OV US | EU | CN Project Funnel Provided Globally 34 in US 25 in CN 59 Preclinical & Phase I Integrated CRTDMO Services to Cell & Gene Therapy product 7 in
Slide 24: WuXi DDSU: better enabling China-based customer innovation, business to evolve in 2022
WuXi DDSU: better enabling China-based customer innovation, business to evolve in 2022 Financial Performance Project Number Innovative R&D Business Evolvement During the Reporting Period, our DDSU’s revenue decline Revenue declined 21.6% Among the 146 projects success-based drug discovery Yo
Slide 25: WuXi DDSU: Success-based Business Model with Potential Upside
WuXi DDSU: Success-based Business Model with Potential Upside 146 IND filings2 ~70% Top 3 in China1 238 ongoing projects ended March 31, 2022 Drug discovery & pre-clinical：104 IND & beyond：134 IND: 20 Clinical：114 20 74 16 3 1 CTA P1 P2 P3 NDA Note: 1. Rank by clinical development speed among same-c
Slide 26: Financial Performance
3. Financial Performance 26
Slide 27: Financial Performance
Financial Performance Non-IFRS Gross Profit Revenue Non-IFRS Gross Profit RMB MM 40.3% 40.3% RMB MM 16,535 40.0% 6,670 12,872 42.2% 39.8% 39.1% 37.8% 9,614 5,155 8,474 7,765 3,830 4,950 3,277 3,202 1,938 2017 2018 2019 2020 2021Q1 2022Q1 2017 2018 2019 2020 2021Q1 2022Q1 Net Profit Attributable to O
Slide 28: Segment Revenue
Segment Revenue RMB MM WuXi Chemistry WuXi Testing +102.1% +31.7% 6,118 1,279 971 3,027 2021Q1 2022Q1 2021Q1 2022Q1 WuXi Biology WuXi ATU WuXi DDSU +37.0% 307 +26.2% 533 299 -21.6% 422 241 218 2021Q1 2022Q1 2021Q1 2022Q1 2021Q1 2022Q1 28
Slide 29: Segment Non-IFRS Gross Profit
Segment Non-IFRS Gross Profit RMB MM WuXi Chemistry WuXi Testing 40.3% 35.7% +36.9% 42.9% +89.8% 34.3% 456 2,466 333 1,300 2021Q1 2022Q1 2021Q1 2022Q1 WuXi Biology WuXi ATU WuXi DDSU 41.4% 47.3% -45.1% 37.2% +40.4% 220 2021Q1 2022Q1 145 33.1% ~0 157 80 -0.2% -22 2021Q1 2022Q1 Unfavorable -7.5% 2021Q
Slide 30: Revenue and Adjusted Non-IFRS Gross Profit at Constant Exchange Rate (CER)
Revenue and Adjusted Non-IFRS Gross Profit at Constant Exchange Rate (CER) 1Q’22 ex. 1Q’21 (RMB Million) 1Q’22 1Q’21 YoY YoY@CER Hedge @CER ex. Hedge Revenue 8,474 4,950 71.2% 8,492 4,758 78.5% Adjusted Non-IFRS Gross Profit 3,202 1,938 65.3% 3,209 1,745 83.9% Adjusted Non-IFRS Gross Profit Margin 3
Slide 31: IFRS & Adjusted Non-IFRS Measures
IFRS & Adjusted Non-IFRS Measures RMB Million 2022Q1 2021Q1 YoY Revenue 8,474 4,950 71.2% IFRS Gross Margin% 35.6% 37.1% Adjusted Non-IFRS Gross Margin% 37.8% 39.1% IFRS Operating Profit 2,121 1,759 20.6% IFRS Operating Profit Margin% 25.0% 35.5% Adjusted Non-IFRS Operating Profit 2,459 1,358 81.1%
Slide 32: Adjusted Non-IFRS Net Profit
Adjusted Non-IFRS Net Profit RMB Million 2022Q1 2021Q1 Net Profit Attributable to the owners of the Company 1,642.9 1,499.8 Add: +85.8% (1) Share-based compensation expenses 180.5 126.3 Issuance expenses of Convertible Bonds 0.4 1.0 Fair value (gains)/losses from derivative component of RMB MM (82.8
Slide 33: Capital Expenditure and Total Debt
Capital Expenditure and Total Debt Long-term Capital Expenditure 1 Total Borrowings 2 (1) (1) Short-term RMB MM RMB MM 9,000-10,000 2,693 2,572 2,261 762 1,618 300 1,230 2,693 6,936 2,261 1,810 1,318 1,230 2,532 3,031 2,249 2,208 135 1,363 120 2017 2018 2019 2020 2021 2022E 2017 2018 2019 2020 2021
Slide 34: Growth Outlook
4. Growth Outlook i ls Be 3)
Slide 35: 2022 Outlook
2022 Outlook If the Omicron outbreak in Shanghai would be largely controlled by April, we expect to 1 grow 63-65% for 2022Q2 and 65-70% for 2022. Our mgmt team will closely monitor the development of the outbreak and will provide business updates when appropriate 2 Client demands for our CRDMO & CTD