Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q1 FY24 Earnings Presentation
35 slides from Neuland Laboratories's earnings presentation, Aug 3, 2023
Slide 1: Exchange intimation letter for investor presentation
August 3, 2023 To BSE Limited The National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, 25th Floor, Exchange Plaza, Dalal Street, Mumbai – 400 001 Bandra Kurla Complex Bandra (E), Mumbai – 400 001 Scrip Code: 524558 Scrip Code: NEULANDLAB; Series: EQ Dear Sir/Madam, Sub: Investors/Analysts
Slide 2: Neuland Laboratories Limited Investor Presentation Q1FY24
Neuland Laboratories Limited INVESTOR PRESENTATION Q1FY24
Slide 3: Safe Harbour
SAFE HARBOUR 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", "estimate", "intend", "
Slide 4: Table of Contents
Table of Contents 1 2 3 4 5 Q1FY24 Company Business Shareholder Appendix Highlights Overview Strategy Information
Slide 5: Q1FY24 Highlights
Nee NEULAND Q1FY24 Highlights
Slide 6: Management Commentary
Management Commentary SUCHETH DAVULURI “The performance this quarter is in line with our plan and is a good indicator of the business momentum within the organization. The high YoY growth had contribution from all three segments and the EBITDA margin improvement of 1410 bps on YOY basis reflects the
Slide 7: Business and Financial Highlights
Business and Financial Highlights Q1FY24 Business and Financial Highlights CMS segment CMS revenues driven by commercial molecules. Significant contribution from molecules in the pipeline also Specialty business Specialty business growth driven by Apixaban and Paliperidone Prime segment In Prime seg
Slide 8: Q1FY24 Financial Highlights
Q1FY24 Financial Highlights Total Income EBITDA PAT EPS (Rs. Cr) (Rs. Cr) (Rs. Cr) 20.4% (Rs.) 30.8% 17.0% 27.2% 23.6% 13.0% 20.3% 11.3% 65.9 4.4% 415.1 84.5 127.8 13.1% 365.0 48.5 293.9 62.2 99.3 69.4 270.2 29.9 38.3 221.7 7.7 54.9 23.7 9.8 30.4 29.0 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23
Slide 9: Key Balance Sheet Metrics
Key Balance Sheet Metrics Current Ratio(x) ROCE (%)* Fixed Asset Turnover (x)** Debt to Equity (x) 29.6% 21.3% 3.1 0.4 1.8 2.7 1.7 1.6 2.4 1.5 2.3 1.4 13.5% 2.1 0.2 9.7% 0.2 8.9% 0.1 0.1 FY20 FY21 FY22 FY23 Q1FY24 FY20 FY21 FY22 FY23 Q1FY24 FY20 FY21 FY22 FY23 Q1FY24 FY20 FY21 FY22 FY23 Q1FY24 Parti
Slide 10: Key Operating Metrics Q1FY24
Key Operating Metrics Q1FY24 Segment Revenue Prime Specialty Top 10 & Top 5 Products Top 10 Top 10 & Top 5 Customers Top 10 CMS Others Top 5 Top 5 99% 96% 95% 92% 4% 4% 4% 4% 5% 75% 85% 78% 77% 80% 31% 33% 35% 62% 64% 62% 45% 44% 62% 49% 26% 41% 43% 33% 25% 24% 25% 39% 36% 30% 26% 26% Q1FY23 Q2FY23
Slide 11: CMS – Revenue Split & Number of Active Projects
CMS – Revenue Split & Number of Active Projects YoY Movement No. of active CMS projects Q1FY24 Pre-Clinical P-1 P-2 P-3 Pre-Reg/Reg* Commercial Total 104 API 14 5 10 4 8 8 49 Intermediate 6 4 6 4 7 11 38 42 Grand Total 20 9 16 8 15 19 87 55 27 Q1FY23 Q1FY24 Q1FY23 Pre-Clinical P-1 P-2 P-3 Pre-Reg/Re
Slide 12: Company overview
Nee NEULAND Company overview
Slide 13: Key Facts
Key Facts 39+ 959+ 100+ 75% Years of experience DMFs Filed API across 10 Revenue from exports worldwide therapeutic areas 80+ 65 907KL 1626 Countries Served Active US DMFs API Manufacturing Employees Capacity 12
Slide 14: How We Got Here: Key Milestones
How We Got Here: Key Milestones First API sale of Salbutamol Sulphate / Albuterol Sulphate First US FDA Audit Japan Subsidiary R&D Centre established; EDQM Incorporation Neuland goes Public USA Operation Audit of Unit-1 1984 1986 1994 1997 2004 2007 2008 2023 2021 2020 2017 2016 2013 2009 Crossed Rs
Slide 15: Our Reach
Our Reach Europe 33% APAC North America Sales Personnel in 3% 54% Lugano, Switzerland Since 2021 Japan 3% Sales office in US Sales office in Japan Since 2004 Since 2007 MENA India LATAM 1% 4% 2% Headquarters in Hyderabad 3 Manufacturing Units Manufacturing and development partner to customers in ove
Slide 16: Manufacturing Capabilities
Manufacturing Capabilities Solvent Cryogenic Hydrogenation Total Reactor Established Recovery Reaction Regulatory Reaction Volume Volume System Volume USFDA, EDQM, 1986 7.4KL 100KLD 25KL CFDA, PMDA, et. 233 KL al Unit-1 USFDA, EDQM, 1994 6 KL 20KLD 15 KL PMDA, ANVISA 363 KL et. al Unit-2 US FDA, EDQ
Slide 17: Focused R&D Framework
Focused R&D Framework Infrastructure Significant R&D Achievements 15 Development Labs with space for Several NCE APIs added in NDA or expansion commercial stage drugs 60 Fume hoods Support for multiple APIs each year in Phase 2 and Phase 3 clinical candidates Analytical Labs Generic API
Slide 18: Regulatory Filings across geographies
Regulatory Filings across geographies 65 31 10 20 264 ROW filings DMFs with Filings with Health Japanese DMF filed China DMF filed including Turkey, USFDA Canada Mexico, Brazil etc 959+ Filings till date ~499 29 19 26 EUDMF filings across CEPs Received for filings with Germany, France, filings with
Slide 19: Financial Highlights FY2014-2023
Financial Highlights FY2014-2023 Rs. Cr FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Total Income 469.1 469.9 519.3 582.3 533.7 670.3 766.6 953.0 953.2 1,200.9 EBITDA 74.0 67.4 89.7 97.6 56.3 61.4 105.3 162.5 144.3 281.1 EBITDA Margin 15.8% 14.3% 17.3% 16.8% 10.6% 9.2% 13.7%
Slide 20: Business Strategy
Nee NEULAND Business Strategy
Slide 21: Neuland Strategy Framework – Strategic Priorities
Neuland Strategy Framework – Strategic Priorities Strategic Priority – IV Strategic Priority – I Digitize Planning to Delivery processes (like Rolling Plan & Build deep competency (through organic & inorganic Inventory), Financial processes (like Payables, Receivables, means) in complementary new te
Slide 22: GDS Strategy
Nee NEULAND GDS Strategy
Slide 23: Global Outlook of Pharmaceutical Industry
Global Outlook of Pharmaceutical Industry Global Pharmaceuticals Global Generic Drugs FY24 FY30 Global Generics Global Generics API Market Size API Market Size $70 $115 2,172 Bn Bn 1,444 760 477 GDS Portfolio GDS Portfolio Market Size Market Size 2023 FY24 2030 FY30 The GLOBAL PHARMACEUTICALS MARKET
Slide 24: Focus Area
Focus Area 1. Maximizing Current Portfolio 2. Growing Pipeline Increase wallet share from existing customers Commercialization of pipeline molecules through New leads identification and conversion Focus on regulated markets/ quality conscious customers Aim for first sourcing and NCE-1 opportunities
Slide 25: CMS Strategy
CMS Strategy
Slide 26: Global Outlook of CDMO Industry
Global Outlook of CDMO Industry CDMOs are strengthening their position as indispensable partners and creating strategic, integrated partnerships with innovators API CDMO Market Size ($Bn) 166 CDMOs are becoming more agile to meet increasing demand for diverse projects Rise in M&A and PE investments
Slide 27: Big Pharma vs Biotech Drug Approval Trend
Big Pharma vs Biotech Drug Approval Trend Small Molecules & Synthetic Peptides Approvals 67% 74% 71% Biotech companies are more 68% 64% 65% 58% 58% 55% 55% 54% aggressive in focusing on small 42% molecules, hence they have a 36% 32% 46% higher approval rate compared to 42% 45% 45% 33% 35% Big Pharma
Slide 28: Focus Areas
Focus Areas Continue to invest in R&D capabilities and manufacturing technologies to attract more 1 RFPs while improving conversion rate 2 Lifecycle management of commercial products 3 Continue to focus on molecules in Phase II and later stages of development 4 Continue business development focus on
Slide 29: Shareholder Information
Nee NEULAND Shareholder Information
Slide 30: Shareholding Details
Shareholding Details Share Information (as on 30th June 2023) NSE Ticker NEULANDLAB BSE Ticker 524558 Others 37% Market Cap (Rs. Cr) 3,632 Promoters 36% % free-float 63.97% Free-float market cap (Rs. Cr) 2,323 Shares Outstanding 1,28,29,889 3M Average Daily Traded Volume (ADTV) 1,09,532 FII DII (Sha
Slide 31: Annexure
Annexure 5
Slide 32: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) Particulars (Rs Cr) Q1FY24 Q1FY23 YoY (%) Q4FY23 QoQ (%) Total Income 365.0 221.7 64.7% 415.1 (12.1)% EBITDA 99.3 29.0 242.5% 127.8 (22.3)% EBITDA Margin 27.2% 13.1% 1410 bps 30.8% (360) Bps Profit Before Tax 83.5 13.3 526.3% 110.0 (24.1)% PBT Margin 22.9% 6.0% 16
Slide 33: Sustainability at Neuland
Sustainability at Neuland Climate change Corporate Governance Reducing greenhouse gas (GHG) Maintain an effective governance and emissions intensity and moving decision-making structure towards a balanced portfolio of low carbon energy management Empowering our people and Ethical Business and Compli
Slide 34: Glossary
Glossary Term Description Term Description Any substance that is intended for incorporation into a finished drug Drugs (small or large molecule) under development by a Pipeline drugs Active Pharmaceutical product and is intended to furnish pharmacological activity or other manufacturer Ingredient (A
Slide 35: For over 39 Years, Neuland Laboratories Ltd.
For over 39 Years, Neuland Laboratories Ltd. (BSE:524558, NSE: NEULANDLAB) has been at the forefront of For further information contact manufacturing APIs through its cGMP manufacturing facilities, working with customers in close to 80 countries. IR Desk Neuland Labs has developed more than 300 proc