Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q4 FY23 Earnings Presentation
37 slides from Neuland Laboratories's earnings presentation, May 11, 2023
Slide 1: Exchange filing cover letter
May 11, 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 P
Slide 2: Neuland Laboratories Limited Investor Presentation Q4 and FY23
Neuland Laboratories Limited INVESTOR PRESENTATION Q4 and FY23
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 Q4 and FY23 Company Business Shareholder Appendix Highlights Overview Strategy Information
Slide 5: Q4 and FY23 Highlights
Nee NEULAND Q4 and FY23 Highlights
Slide 6: Management Commentary
Management Commentary SUCHETH DAVULURI “We crossed several significant milestones in FY23 with business driven by ongoing growth in the high margin Specialty and CMS business. The performance of this fiscal reflects the various initiatives we have taken in line with our strategy over the last few ye
Slide 7: Business Highlights
Business Highlights Q4 & FY23 Business Highlights Specialty business Specialty business growth driven by Apixaban, Paliperidone along with Ezetimibe, and Donepezil Revenue contributions CMS revenues driven by commercial molecules some of which have transitioned recently. Significant contribution fro
Slide 8: Q4FY23 Financial Highlights
Q4FY23 Financial Highlights EBITDA PAT Total Income EBITDA PAT EPS EBITDA Margin PAT Margin (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs.) 20.4% 30.8% 23.6% 20.3% 13.0% 11.3% 65.9 15.3% 415.1 84.5 8.5% 127.8 13.1% 293.9 270.2 256.5 4.4% 221.7 69.4 29.9 38.3 54.9 23.7 30.4 39.3 21.8 17.0 29.0 9.8 7.7 Q4FY22 Q1FY23
Slide 9: FY23 Financial Highlights
FY23 Financial Highlights EBITDA PAT Total Income EBITDA PAT EPS EBITDA Margin PAT Margin (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs.) 23.4% 13.6% 15.1% 6.7% 127.1 163.1 281.1 1,200.9 953.2 144.3 49.5 63.5 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 Financial Highlights • Total Income for FY23 at Rs. 1,200.9 Crore
Slide 10: Key Balance Sheet Metrics
Key Balance Sheet Metrics Current Ratio(x) ROCE (%) Fixed Asset Turnover (x) Debt to Equity (x) 21.3% 0.4 2.7 1.7 1.6 13.5% 2.4 1.5 2.3 1.4 2.1 9.7% 0.2 8.9% 0.2 0.1 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Value (Rs. Cr) Mar-20 Mar-21 Mar-22 Mar-23 Shareholder
Slide 11: Key Operating Metrics Q4FY23
Key Operating Metrics Q4FY23 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% 96% 95% 4% 4% 4% 4% 4% 83% 84% 76% 81% 80% 28% 67% 64% 31% 33% 35% 45% 59% 60% 51% 25% 44% 26% 25% 42% 33% 24% 43% 39% 30% 36% 26% Q4FY22 Q1FY23
Slide 12: Key Operating Metrics FY23
Key Operating Metrics FY23 Prime Speciality Segment Revenue Top 10 & Top 5 Products Top 10 Top 10 & Top 5 Customers Top 10 CMS Others Top 5 Top 5 99% 3% 4% 92% 85% 86% 30% 77% 75% 77% 37% 64% 69% 59% 53% 55% 24% 52% 27% 44% 36% 38% 43% 32% FY22 FY23 Prime Specialty CMS Overall Company Prime Specialt
Slide 13: CMS – Revenue Split & Number of Active Projects
CMS – Revenue Split & Number of Active Projects YoY Movement No. of active CMS projects Q4 FY23 Pre-Clinical P-1 P-2 P-3 Development Commercial Total 262 API 15 5 7 4 8 9 48 114 Intermediate 10 4 4 2 7 12 39 186 Grand Total 25 9 11 6 15 21 87 168 FY22 FY23 Q4 FY22 Pre-Clinical P-1 P-2 P-3 Developmen
Slide 14: Company overview
Nee NEULAND Company overview
Slide 15: Key Facts
Key Facts 39+ 950+ 100+ 73% Years of experience DMFs Filed API across 10 Revenue from exports worldwide therapeutic areas 80+ 65 907KL 1573 Countries Served Active US DMFs API Manufacturing Employees Capacity 14
Slide 16: 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 17: Our Reach
Our Reach Europe 33% APAC North America Sales Personnel in 5% 51% Lugano, Switzerland Since 2021 Japan 3% Sales office in US Sales office in Japan Since 2004 Since 2007 MENA India LATAM 1% 4% 3% Headquarters in Hyderabad 3 Manufacturing Units Manufacturing and development partner to customers in ove
Slide 18: 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 Desktop Fac
Slide 19: 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 Analytical Labs Phase 2 and Phase 3 clinical candidates Generic API
Slide 20: Regulatory Filings across geographies
Regulatory Filings across geographies 65 31 10 20 256 ROW filings DMFs with Filings with Health Japanese DMF filed China DMF filed including Turkey, USFDA Canada Mexico, Brazil etc 950+ Filings till date ~499 28 19 26 EUDMF filings across CEPs Received for filings with Germany, France, filings with
Slide 21: 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 22: Business Strategy
Nee NEULAND Business Strategy
Slide 23: 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 24: GDS Strategy
Nee NEULAND GDS Strategy
Slide 25: 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 $115 2,172 Bn Bn 1,444 760 477 GDS Portfolio GDS Portfolio Market Size Market Size 2023 FY24 2030 FY30 The GLOBAL PHARMACEUTICALS MARKET
Slide 26: Focus Area
Focus Area 1. Maximizing Current Portfolio 2. Growing Pipeline Increase wallet share from existing customers Commercialization of pipeline molecules through New leads identification and conversion Focus on regulated markets/ quality conscious customers Aim for first sourcing and NCE-1 opportunities
Slide 27: CMS Strategy
CMS Strategy
Slide 28: Global Outlook of CDMO Industry
Global Outlook of CDMO Industry CDMOs are strengthening their position as indispensable partners and creating strategic, integrated partnerships with innovators API CDMO Market Size ($Bn) 166 CDMOs are becoming more agile to meet increasing demand for diverse projects Rise in M&A and PE investments
Slide 29: Big Pharma vs Biotech Drug Approval Trend
Big Pharma vs Biotech Drug Approval Trend Small Molecules & Synthetic Peptides Approvals 67% 74% 65% 71% Biotech companies are more 58% 55% 55% aggressive in focusing on small 68% 64% 58% molecules, hence they have a 32% 36% 45% 45% higher approval rate compared to Big Pharma companies, which are 42
Slide 30: 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 31: Shareholder Information
Nee NEULAND Shareholder Information
Slide 32: Shareholding Details
Shareholding Details Share Information (as on 31st March 2023) NSE Ticker NEULANDLAB BSE Ticker 524558 Others 39% Market Cap (Rs. Cr) 2,309 Promoters 36% % free-float 63.86% Free-float market cap (Rs. Cr) 1,474 Shares Outstanding 1,28,29,889 3M Average Daily Traded Volume (ADTV) 45,918 FII DII (Shar
Slide 33: Annexure
Annexure 5
Slide 34: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) Value (In Cr) Q4FY23 Q4FY22 YoY (%) Q3FY23 QoQ (%) FY23 FY22 YoY (%) Total Income 415.1 256.5 61.8% 270.2 53.7% 1200.9 953.2 26.0% EBITDA 127.8 39.3 224.8% 54.9 132.9% 281.1 144.3 94.8% EBITDA Margin 30.8% 15.3% 1550 bps 20.3% 1050 bps 23.4% 15.1% 830 bps Profit B
Slide 35: Sustainability at Neuland
Sustainability at Neuland Sustainability Framework Building a Low carbon economy Empowering our people and Contributing to the sustainable through innovation, resource communities by making health and development of communities through optimisation, operational efficiencies safety an integral part o
Slide 36: 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 37: 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