Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q3 FY2021 Earnings Presentation
34 slides from Neuland Laboratories's earnings presentation, February 2021
Slide 1: Earnings Presentation Q3 FY21
Earnings Presentation Q3 FY 21 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS
Slide 2: 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 3: Table of Contents
Table of Contents Q3 FY 21 1 HIGHLIGHTS 2 BUSINESS OVERVIEW 3 CAPABILITIES 4 FINANCIALS 5 OUTLOOK 3
Slide 4: Q3 & 9M FY21 Highlights
Q3 & 9M FY 21 HIGHLIGHTS
Slide 5: Management Speak
Management Speak SUCHETH DAVULURI Vice-Chairman & Chief Executive Officer “We are pleased to announce another strong quarter of top line and bottom-line performance. The revenue at Rs.245.6 crores was a 20% improvement over the corresponding quarter of the last fiscal while the margins have showed a
Slide 6: Financial Highlights
Financial Highlights Q3 FY21 ❖ Total income increased by 20.0% in Q3FY21 on account of secular growth in GDS and CMS • Prime segment continues growth led by Levetiracetam and Mirtazapine • Speciality business had a stable quarter led by Deferasirox and Dorzolamide • CMS business witnessed growth in
Slide 7: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) QoQ YoY YoY Particulars (Rs. Cr) Q3FY21 Q2FY21 Q3FY20 9MFY21 9MFY20 (%) (%) (%) Total Income 245.6 242.0 1.5% 204.6 20.0% 693.7 573.0 21.1% EBITDA 46.7 41.4 12.9% 29.1 60.6% 122.5 73.6 66.5% EBITDA Margin 19.0% 17.1% 190 bps 14.2% 480 bps 17.7% 12.8% 490 bps Profi
Slide 8: Financials (Standalone)
Financials (Standalone) Revenue (Rs. Cr) EBITDA (Rs. Cr) and EBITDA Margin (%) 123 694 28 120 573 26 24 100 74 22 80 20 242 246 47 17.7% 18 41 60 50 28 206 32 34 16 194 45 26 40 24 35 40 14 22 12.8% 30 20 25 12 18 19.0% 20 20 17.1% 16 16.4% 16.7% 15 14 10 10 5 12 0 10 0 8 Q4 FY20 Q1 FY21 Q2 FY21 Q3
Slide 9: Key Operating Metrics
Key Operating Metrics YoY Analysis Quarter on Quarter Movement 7% 2% 2% 2% 2% 5% 30% 22% 24% 31% 28% 37% 22% 28% 22% 20% 25% 18% 48% 46% 48% 47% 42% 43% YTD Q3-FY20 YTD Q3-FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Prime Niche/Speciality CMS Others Prime Niche/Speciality CMS Others *Q1FY21 figures adjuste
Slide 10: Business Salience (Overall Company)
Business Salience (Overall Company) PRODUCT YoY Analysis QoQ Movement 59% 59% 61% 60% TOP 10 58% 56% TOP 5 % of Total revenue 43% 43% 39% 38% 39% 38% YTD Q3 FY20 YTD Q3 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CUSTOMER YoY Analysis QoQ Movement 52% 54% 57% 52% 50% 43% 40% 43% 44% 32% 36% 39% YTD Q3 FY20
Slide 11: Business Salience (Prime)
Business Salience (Prime) YTD Q3 YTD Q3 Q4 Q1 Q2 Q3 FY20 48% FY21 46% FY20 42% 48% FY21 47% 43% FY21 FY21 TOP 10 TOP 5 PRODUCT YoY Analysis QoQ Movement (of Prime revenue) 94% 92% 93% 94% 93% 91% 75% 75% 72% 72% 74% 74% YTD Q3 FY20 YTD Q3 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CUSTOMER YoY Analysis Qo
Slide 12: Business Salience (Niche/Speciality)
Business Salience (Niche/Speciality) YTD Q3 YTD Q3 Q4 Q1 Q2 Q3 FY20 22% FY21 22% FY20 25% FY21 28% FY21 20% FY21 18% YoY Analysis QoQ Movement TOP 10 PRODUCT 93% TOP 5 85% (of Niche/Speciality 86% 87% 90% 89% Revenue) 73% 64% 67% 62% 63% 62% YTD Q3 FY20 YTD Q3 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CU
Slide 13: Business Salience (CMS)
Business Salience (CMS) YTD Q3 YTD Q3 Q4 Q1 Q2 Q3 FY20 24% FY21 30% 28% 22% FY21 31% 37% FY20 FY21 FY21 TOP 10 YoY Analysis QoQ Movement TOP 5 96% 97% PRODUCT 86% 88% (of CMS revenue) 83% 84% 89% 81% 71% 66% 70% 72% YTD Q3 FY20 YTD Q3 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 CUSTOMER YoY Analysis QoQ Mo
Slide 14: Key Operating Metrics – CMS Revenue Split
Key Operating Metrics – CMS Revenue Split Rs. In Cr YoY Analysis Quarter on Quarter Movement Commercial Development 116 45 Axis Title 87 50 27 94 21 45 49 27 27 22 YTD Q3 FY20 YTD Q3 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Axis Title 14
Slide 15: Number of Active CMS Projects
Number of Active CMS Projects Q3 FY21 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 14 4 6 3 10 6 43 Intermediate 7 4 2 3 8 9 33 Grand Total 21 8 8 6 18 15 76 Q3 FY20 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 12 4 4 5 9 6 40 Intermediate 7 3 2 5 8 9 34 Grand T
Slide 16: Well Placed for a Post-Covid World
Well Placed for a Post- Covid World ❖ Shortening the supply chain and de-risking the vendor base ❖ Investing in capabilities and infrastructure in R&D ❖ Placed reserve manpower in Manufacturing and Quality functions to meet customer requirements ❖ Ready to meet changing regulatory requirements via o
Slide 17: Business Overview
BUSINESS OVERVIEW
Slide 18: Our Journey – Key Milestones
Our Journey – Key Milestones Laying Strong Foundation Deepening our Capabilities Increased Sustainable Growth 1984 - 2003 2004 - 2012 2013 -Today R&D 100 Mn+ Revenue Strategic alignment of Acquisition Separate R&D Facility Over 75 Live CMS business towards of advanced Centre Established approved Pro
Slide 19: Generic Drug Substance (GDS)
Generic Drug Substance (GDS) We started as a Prime API ..Added Speciality molecules for manufacturer… complex products.. Capability Capability ✓ 3 US FDA and EU GMP compliant ✓ High end complex chemistry capabilities manufacturing facilities ✓ Backend support by R&D department ✓ Collective capacity:
Slide 20: On path to being a preferred partner in CMS
On path to being a preferred partner in CMS.. Services ✓ Manufacturing API to customer specifications ✓ Designing and developing manufacturing processes ✓ Process optimization for competitiveness ✓ Filing of DMF/CMC for the API ✓ Patent protection for processes Business Approach ✓ Local presence in
Slide 21: Capabilities
CAPABILITIES
Slide 22: Scaled up Manufacturing Facilities over the years
Scaled up Manufacturing Facilities over the years... Hyderabad Location of All Units 222.5 KL 310.2 KL 197 KL UNIT 1 UNIT 2 UNIT 3 BONTHAPALLY PASHAMYLARAM GADDAPOTHARAM Year of 1986 1994 2017 Establishment Mirtazapine, Sotalol HCL, Levetiracetam, Ciprofloxacin HCL, Key Levofloxacin, Salmeterol, Pro
Slide 23: Backed up by sound R&D capabilities
..Backed up by sound R&D capabilities.. R&D Facility, Hyderabad Neuland’s R&D facility had been inspected by USDFA in February 2016 without any observations Infrastructure Significant R&D Achievements • 15 Development Labs with space for • Several NCE APIs added in NDA or commercial stage expansion
Slide 24: Regulatory Filings Across Geographies
..Regulatory Filings Across Geographies… 30 Filings with Health Canada 10 20 Japanese DMF filed China DMF filed 57 DMFs with USFDA 19 220 filings with 22 ROW filings including Turkey, KFDA Korea filings with TGA Mexico, Brazil etc ~495 24 EUDMF filings across Germany, CEPs Received for different 898
Slide 25: And marking its Global Presence
And marking its Global Presence.. EUROPE NORTH AMERICA 42% APAC 35% 7% JAPAN MENA INDIA 4% 4% 6% BD Office in LATAM Princeton, New Jersey 3% Since 2004 Our BD Office in JAPAN Since 2007 10+ CMS projects with Japanese Innovators Working with a Big Japanese Pharma company for the Japanese market for %
Slide 26: Neuland Today: Snapshot
.. Neuland Today: Snapshot.. Legacy Scale Capability Reach Expertise: Mfg. Facilities: Product portfolio: Presence 36+ years backed 3 regulatory 75+ across 10 80+ countries by robust quality approved with 731 therapeutic systems, regulatory KL capacity categories & compliance framework Generic Drugs
Slide 27: Financials
FINANCIALS
Slide 28: Fueling Growth
Fueling Growth… Rs. In Cr 800 767 694 FINANCIAL PERFORMANCE 670 HIGHLIGHTS 123 600 534 105 100 ▪ Revenue CAGR of 19.8% for FY 18-20 led by growth in all 3 businesses 400 61 63 ▪ EBITDA growth of 38.9% CAGR in FY 18-20 due to high margin CMS business 55 and increase in GDS contribution 200 16 16 ▪ Ch
Slide 29: Stable Balance Sheet
Stable Balance Sheet.. Particulars Mar-19 Mar-20 Dec-20 Current Ratio (x) ROCE (%) (Rs. Cr) 1.57 Shareholders' 12.1 696 706 766 1.37 1.42 7.60 funds 3.89 Net Debt 194 214 167 2019 2020 2021 2019 2020 2021 (9M) (9M) Investments 8 8 8 Fixed Asset Turnover (x) Debt to Equity (x) 0.37 Tangible Assets 36
Slide 30: Macroeconomic factors influencing Neuland
Macroeconomic factors influencing Neuland.. IMPACT NEULAND RESPONSE Government regulation: ▪ Consistent regulatory audits ▪ Successfully cleared consecutive USFDA ▪ Increased scrutiny prior to drug audits since inception approvals, audits approvals ▪ Consistent record of new drug approvals Environme
Slide 31: Outlook
OUTLOOK
Slide 32: Laying Foundation for our Growth Strategy
..Laying Foundation for our Growth Strategy CREATE AN ORGANIZATION THAT RESULTS IN VALUE FOR ALL STAKEHOLDERS BUSINESS SCALE Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS accelerate business and CMS business growth CHEMISTRY RELATIONSHIPS Deploy
Slide 33: Contact Us
Contact Us For over 36 Years, Neuland Laboratories Ltd. For further information contact (BSE:524558, NSE: NEULANDLAB) has been at the forefront of manufacturing APIs through its cGMP manufacturing facilities, working with customers in close IR Desk to 80 countries. Neuland Labs Neuland Labs has deve
Slide 34: Thank You
Thank You Confidential. © 2021 Neuland Laboratories Ltd. All rights reserved.
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