Zim Laboratories Ltd. · NSE:ZIMLAB
Zim Laboratories — Investor Presentation (February 2023)
41 slides from Zim Laboratories's investor presentation, Feb 13, 2023
Slide 1: Exchange disclosure cover letter under Regulation 30
Zeal & Innovation in Medicine Ref No.: ZLL/CS/BSE/NSE Date: 13.02.2023 BSE Limited, National Stock Exchange of India Limited Market Operations Dept. Listing Compliance Department P. J. Towers, Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai- 400 001 Bandra (E), Mumbai — 400 051 Company Co
Slide 2: Zim Laboratories Limited Business Presentation February 2023
ZIM LABORATORIES LIMITED BUSINESS PRESENTATION FEBRUARY 2023
Slide 3: Safe Harbour
SAFE HARBOUR The presentation has been prepared by ZIM Laboratories Limited (“ZIM” or the “Company”) solely for information purposes and does not constitute an offer to sell or purchase or recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained he
Slide 4: Safe Harbour
SAFE HARBOUR To the maximum extent permitted by law, the Company, and their respective affiliates, directors, employees, advisers and representatives disclaim all liability and responsibility (including without limitation any liability arising from negligence or otherwise) for any direct or indirect
Slide 5: Our Business
OUR BUSINESS PHARMACEUTICAL AND ZIM develops and supplies differentiated generic Pharmaceutical and Nutraceutical NUTRACEUTICAL products; 73% of our business is in Pharmaceutical products and 27% in Nutraceutical PRODUCTS products (9MFY23) Our differentiation and value proposition is in our ability
Slide 6: Our Business
OUR BUSINESS EXPORT FOCUS 85% of our business is through exports § Pharmaceutical : 81% of our products are exported across markets with focus on some key therapeutic categories § Nutraceutical : 99 % of our products are exported across markets PRE FORMULATION AND We are flexible in supplies of Phar
Slide 7: Our Business
OUR BUSINESS NOW TARGETING KEY Our focus is to enter into the Key Developed and Pharmerging markets with our DEVELOPED AND Pharmaceutical and Nutraceutical products PHARMERGING MARKETS § We have enhanced our R&D capabilities by onboarding a very experienced team in ZIM Health Technologies Ltd (ZHTL
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Total Operating Income EBITDA : In Rs. Mn and as % of Total Operating Income 3,334 3,073 454 2,931 421 423 2,777 14.4% 271 13.7% 13.6% 9.8% FY20 FY21 FY22 9MFY23 FY20 FY21 FY22 9MFY23 Profit After Tax : In Rs. Mn and as % of Total Operating Income Total Borrowings 899 172 811 1
Slide 9: Investments in R&D and Gross Block
INVESTMENTS IN R&D AND GROSS BLOCK Total R&D Spend as of % Total Operating Income Gross Block Addition (In Rs Mn) 8% 5% 15% 16% 6% 24% 50 4% 24% 12% 10% 57 - 36 7.1% 7.3% 6.3% 6.5% 11 5.3% 86% 80% 68 73% 71% 66% 3 170 163 11 48 23 80 40 45 FY19 FY20 FY21 FY22 H1FY23 FY19 FY20 FY21 FY22 H1FY23 % Tota
Slide 10: Pharmaceutical Business Growth Plans
PHARMACEUTICAL BUSINESS GROWTH PLANS
Slide 11: Growth Plans: Pharmaceutical
GROWTH PLANS : PHARMACEUTICAL DIFFERENTIATED Our R&D focus and investments, emphasise our aim of creating robust versatile technology PRODUCTS IN RoW platforms and a differentiated product pipeline (“New Innovative Products – NIP”) and MARKETS other differentiated generic products to drive growth, p
Slide 12: New Innovative Products (NIP)
NEW INNOVATIVE PRODUCTS (NIP) 2 NIP FILINGS IN FY23 2 NIP filings in FY23 for Market Authorisation under ZIM AND 4 EXPECTED IN FY24 FOR EU § Product 1 - Urology (market potential ex USA - USD405Mn) (Source: IQVIA) § Product 2 - Gastro-intestinal (market potential ex USA USD601Mn) (Source: IQVIA) MUL
Slide 13: Registration Filings
REGISTRATION FILINGS Global Market Ex USA Market Products Therapeutic Segment Remarks Size (USD MN) Size (USD MN) Product 1 Urology 417 405 Filings for Registration Product 2 Gastrointestinal 3,281 601 planned in FY23 for EU; for other Target Markets Total 3,698 1,006 thereafter Global Market Ex USA
Slide 14: Oral Thin Films (OTF)
ORAL THIN FILMS (OTF) THINORAL® IS OUR Our Oral Thin Film Technology (Thinoral® patented) provides an alternate dosage form PATENTED for high potent, low dosage pharmaceutical products and for various Nutraceutical and TECHNOLOGY Over the Counter (OTC) products The Global OTF market is estimated at
Slide 15: Oral Thin Films (OTF)
ORAL THIN FILMS (OTF) MARKETING 8 patents granted ; additional 14 under examination AUTHORISATION FOR 2 2 MA (Marketing Authorisations) received for EU; Rizatriptan and Sildenafil ; In addition OTF PRODUCTS Tadalafil OTF has also been filed for Registration in EU ; ZIM has received its first RECEIVE
Slide 16: Nutraceutical Business Growth Plans
NUTRACEUTICAL BUSINESS GROWTH PLANS
Slide 17: Nutraceutical
NUTRACEUTICAL CLIENT CENTRIC Our Nutraceutical business stems from our supply of certain unique PFIs developed PRODUCT DEVELOPMENT specifically for our PFI clients to meet needs of their local markets; this business has been growing steadily and our supply of PFI for nutraceutical products will cont
Slide 18: Nutraceutical
NUTRACEUTICAL 25 NUTRACEUTICAL Presently we have 25 products in Health Supplements/Nutraceuticals PRODUCTS Revenues for 9MFY23 at Rs781Mn; includes exceptional surge during FY23 Our marketing initiatives for our Nutraceutical products are : § Exports as PFI and FF products. The FF products will be m
Slide 19: Initiatives to Support Our Plans
INITIATIVES TO SUPPORT OUR PLANS
Slide 20: Research & Development
RESEARCH & DEVELOPMENT ZIM HEALTH A 100% subsidiary – ZIM Health Technologies Ltd. (ZHTL) has been incorporated to TECHNOLOGIES LTD. accelerate our R&D efforts in product development, manufacturing and marketing 100% SUBSIDIARY complex generic and high-end Pharmaceutical and Nutraceutical products U
Slide 21: Research & Development
RESEARCH & DEVELOPMENT INVESTMENT IN TEAM 91 R&D Team ; 5 PhDs ; 71 post graduate professionals (as on 31st Dec ‘22) AND PATENTS 10 patents granted (for specific periods); 65 patent applications have been submitted in Key Developed and Pharmerging markets (including USA and Mexico) and are under exa
Slide 22: Technology Platforms
TECHNOLOGY PLATFORMS MICRO EMULSION Our New Innovative Products have been developed using our proprietary, non – infringing COATING development and manufacturing processes using the following technology platforms § Micro- Emulsion Coating Technology (MECT) Used for solubilisation of oil soluble PELL
Slide 23: Marketing
MARKETING MARKETING TEAM FOR Marketing Office in Mumbai and Nagpur; dedicated marketing teams for specific SPECIFIC REGIONS markets - Developed Markets, LATAM, CIS, Asia, Africa and Middle East § Pre Formulation products are registered by our clients for marketing in their respective markets with MA
Slide 24: Product Registrations: RoW
PRODUCT REGISTRTATIONS : ROW 224 Pharmaceutical Finished Formulation products are registered across RoW markets; these are in various strengths(excluding registration in multiple markets) In addition, 184 Pharmaceutical Finished Formulation products have been filed and are awaiting registration from
Slide 25: Capacity Expansion
CAPACITY EXPANSION EXISTING FACILITY Over Rs560Mn has been invested in our Gross Block over the last 4.5 years to expand UPGRADED and upgrade manufacturing, utility and other support facilities to be capable of manufacturing leading pharmaceutical products. Plant and equipment of global quality have
Slide 26: Funding Plans
FUNDING PLANS FUNDING THROUGH We expect to meet the funding needed for the warehouse and the NIP manufacturing DEBT AND INTERNAL facility through internal generations GENERATION Funding for the Nutraceutical facility will be met through a combination of debt and internal generation We do not estimat
Slide 27: Risk Factors
zm Zeal & Innovation in Medicine RISK FACTORS
Slide 28: Key Risks
KEY RISKS REGISTRATION DELAYS Delay in registration of our various NIP in the Key Developed and Pharmerging Markets Delays in accreditations and manufacturing approvals for Target Markets PLANT APPROVAL DELAYS Delay in entering into Licensing Agreement for marketing of our products in the Target Mar
Slide 29: Financials
zm Zeal & Innovation in Medicine FINANCIALS
Slide 30: Financials
FINANCIALS Particulars FY20 FY21 FY22 9MFY23 Total Operating Income 2,777 3,073 3,334 2,931 EBITDA 271 421 454 423 EBITDA % 9.8% 13.7% 13.6% 14.4% Profit After Tax (PAT) 33 73 146 172 PAT % 1.2% 2.4% 4.4% 5.9% Net Worth 1,538 1,608 1,757 1,937 Borrowings 899 811 512 380 Net Fixed Assets 1,256 1,172
Slide 31: Quarterly Financials
QUARTERLY FINANCIALS Particulars Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Total Operating Income 642 775 867 1,050 927 994 1,010 Other Income 12 9 7 17 19 14 24 Total Income 654 784 874 1,067 946 1,008 1,034 Net Contribution 261 341 359 452 397 410 431 Employee Costs 138 132 136 157 167 164
Slide 32: Historic Performance
HISTORIC PERFORMANCE Total Operating Income EBITDA : In Rs. Mn and as % of Total Operating Income 1,050 1,010 164 994 155 927 867 131 137 775 111 114 642 15.6% 65 14.1% 15.3% 14.3% 13.8% 13.1% 10.1% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Pro
Slide 33: Corporate Information
zm Zeal & Innovation in Medicine CORPORATE INFORMATION
Slide 34: History
HISTORY 1984-93 § 1984: Company incorporated as Private Ltd Co § 1993: Converted to Public Ltd Co 1994 - 2012 § 1994: IPO and Listing of the shares on Over The Counter Exchange of India (OTCEI) § Funding of growth through preferential allotment of shares to promoters 2012- Till Date § 2012: Equity S
Slide 35: Structure
STRUCTURE ZIM Laboratories Limited (Listed Company) SIA ZIM ZIM Laboratories ZIM Health ZIM Thinorals Laboratories FZE, Sharjah , UAE Technologies Private Limited, Limited, Latvia 100% Subsidiary Limited, India India 100% Subsidiary 100% Subsidiary 100% Subsidiary We may enter into joint venture arr
Slide 36: Shares
SHARES Ownership % (On Dec ‘22) Traded Volume (In K) BSE+NSE During Q3, ZIM Laboratories Limited was listed on the National Stock Exchange of 22% 609 India (NSE) 5% 5% The company in Q3 issued Bonus Shares in the ratio of 2 (two) shares for 1 (one) 35% 307 existing share 33% 204 169 Promoter Group 7
Slide 37: Annexures
zm Zeal & Innovation in Medicine ANNEXURES
Slide 38: Historic Performance
HISTORIC PERFORMANCE Revenue Mix : % Region wise % Concentration of Top 10 Pharmaceutical Products 7% 7% 19% 21% 9M FY23 23% 12% 13% FY22 17% 24% 26% 25% FY21 22% 37% 27% FY20 19% FY20 FY21 FY22 44% 46% 48% 50% 52% 54% 56% 58% India Middle East Asia(Ex India) Africa Others All numbers are in Rs. Mn
Slide 39: Historic Performance
HISTORIC PERFORMANCE Therapeutic category wise Pharma business mix % 11% 11% 16% 12% 12% 38% Antibiotic / Anti-Infective Gastrointestinal Analgesic / NSAID Respiratory System Cardiovascular Others 38
Slide 40: Nutraceuticals
NUTRACEUTICALS ZIM Labs’ OTF plant is now NSF–ANSI 455-2 accredited for Some Nutraceutical Products Developed / Under Dietary Supplements Development ZIM has developed a product basket of Nutraceuticals which leverage on our technology platforms or complement § Nootropic XR Pellets in Capsules pharm
Slide 41: Thank You
2.mn 1 THANK YOU
Zim Laboratories — Investor Presentation (February 2023) on 6ix