Unichem Laboratories Limited · NSE:UNICHEMLAB

Unichem Laboratories — H1 FY2015 Earnings Presentation

44 slides from Unichem Laboratories's earnings presentation, October 2014

  1. Slide 1: Unichem Laboratories Limited Investor Presentation

    Unichem Laboratories Limited UNICHEM Investor Presentation October, 2014 ©Unichem Laboratories Ltd 1

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation may include certain forward-looking statements and information that involve risks, uncertainties and assumptions based on current expectations, within the meaning of applicable laws and regulations. Forward-looking statements are all statements that concern pl

  3. Slide 3: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 3

  4. Slide 4: Profile

    Profile One of the India’s leading integrated Pharmaceutical Companies with a strong presence in domestic formulations market Ranked 26th in the Domestic Formulations market as per AWACS MAT Sept, 2014 Amongst the top # 18 companies in representative (covered) market Domestic Operations contribute ~

  5. Slide 5: History - Key Milestones (Last 10 Years)

     Realignment of History - Key Milestones Chronic Care Portfolio (Last 10 Years)  Re-location of R&D  USFDA from Mumbai to re-certification of Goa (CoE). Filings Goa Plant & commissioned  USFDA Roha Plant  Expansion of from new R&D certification Packaging Centre of Goa Plant  USFDA  Commenceme

  6. Slide 6: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 6

  7. Slide 7: Unichem Consolidated Financials

    Unichem Consolidated Financials {Rs. Crores} Growing Steadily & Focus on Profitability 1,200 1,133 25.0% 1,081 1,000 22.8% 20.0% 876 824 746 18.5% UNICHEM 800 17.5% 17.3% 15.0% 15.9% 600 10.0% 400 5.0% 200 - 0.0% FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Revenue *EBITDA Margin EBITDA Margin in FY 2011

  8. Slide 8: EBITDA Profile from FY onwards

    EBITDA Profile from FY 12 onwards 60 53 51 50 50 48 48 44 42 40 40 37 33 33 UNICHEM 32 31 30 27 20 20 19.1 18 18.6 18.2 16.5 17 17.3 17.2 14.3 15.3 15 10 13 12 0 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 EBITDA INR Crs EBITDA Margin % ©Unichem Laboratories L

  9. Slide 9: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 9

  10. Slide 10: The Indian Pharma Market

    The Indian Pharma Market  Current Estimated Size of IPM (MAT Sept, 2014) is Rs. 80,565 Crores  Market Growth MAT Sept– 9.1%  India ranks globally 3rd by volume and 12th by value UNICHEM  Expected to rank 8th by value by 2016  Future growth projections vary from an optimistic 14% p.a. to tempere

  11. Slide 11: Revenue & Business areas break-up FY 2014

    Revenue & Business areas break-up Consolidated – FY 2014 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 141 56, UNICHEM 13% 5% 153 393, 14% 655 35% 91 59% 685, 8% 60% 51 5% 27 2% Formulation - Domestic API - Domestic India Business Regulated Markets Emerging Markets For

  12. Slide 12: Revenue & Business areas break-up H1 FY 2015

    Revenue & Business areas break-up Consolidated – H1 FY 2015 Revenue Break-up by Segment Revenue Break-up by Region Rs. Crores Rs. Crores 87 39, 14% UNICHEM 6% 90 14% 346 225, 56% 36% 364, 50 58% 8% 37 6% 13 2% Formulation - Domestic API - Domestic India Business Regulated Markets Emerging Markets Fo

  13. Slide 13: Portfolio Scene: Therapy Dominance & Price Control

    Portfolio SCENE Therapy Dominance & Price Control Therapy Therapy  Major Revenue contributors:  Chronic care accounts for ~58%* of Domestic Formulation Revenues  Acute portfolio accounts for ~42%* of Domestic Formulation Revenues UNICHEM Portfolio Price Control  Appx 16% of Domestic Portfolio (i

  14. Slide 14: Cash Generation - Pre R&D Expenses

    Cash Generation – Pre R & D Expenses Rs. Crores FY FY FY FY FY FY H1 FY Cumulative 2009 2010 2011 2012 2013 2014 2015 Positive Cash 168.4 188.7 179.6 152.1 201.3 235.9* 101.8 1,228 Flow Spending: UNICHEM R&D 23.5 29.7 40.5 39.7 36.4 52.2 30.0 252 Expenditure Capital 45.5 44.3 84.2 106.5 76.1 86.3 37

  15. Slide 15: Unichem in The Indian Pharma Market

    Unichem in The Indian Pharma Market Rs. Crores Indian Pharmaceutical Market MAT Sept, 2014 % Growth Total Size of the Market 80,565 9.1 Unichem Represented (Covered) Market 39,813 7.7 Sr. No Top Companies in Covered Market UNICHEM 1 Sun Pharma 2,309 12.7 2 Alkem 2,151 13.5 3 Ranbaxy 2,041 4.3 4 Mank

  16. Slide 16: Unichem's Therapy Gaps in the market

    Unichem’s Therapy Gaps in the market MAT Sept’ 14 % of Total No. of Sub- % of Total Value Rs. Crs Value Segments No. of Segments Unichem Non-Represented Segments 40,752 50.6% 2,489 87.5% Unichem Represented Segments 39,813 49.4% 357 12.5% Total Market 80,565 100.0% 2,846 100.0% UNICHEM  Unichem is

  17. Slide 17: Domestic Formulations: Divisions

    Domestic Formulations: Divisions Covered Covered Chronic Therapies Specialist (6) Anti-Hypertensive & Anti- Cardiologists, CPs & GPs CVS-Life Anxiolytics Anti-Hypertensive, Statins Cardiologists, Diabetologists, CVS-Star & Anti-Anginal CPs & FPs Cardio-Diabeto (4) UNICHEM CD Anti-Hypertensive, Stati

  18. Slide 18: Domestic Formulations: Divisions

    Domestic Formulations: Divisions Covered Covered Acute Therapies Specialist (5) Anti-Infective & GPs, NGPs, CPs, Gastrointestinal, Anti- pediatrics, & UVA Pyritic & related products Gynecologists, Extra Urban/Urban Anti- Infective/Allergy & Anti-Infective, Multi GPs, CPs, ENT, Dentists, Gastro (2) V

  19. Slide 19: Domestic Business: Customer Coverage

    Domestic Business: Customer Coverage Penetration 7 Chronic Verticals manned by ~1600 + CBAs 4 Acute verticals manned by ~1200 + CBAs UNICHEM Doctor Coverage: Over 100,000 doctors covered Chronic Coverage Cardiologists, Diabetologists, Neurologists, Psychiatrists, Nephrologists, Dermatologists, Gynae

  20. Slide 20: Domestic Formulations Business

    Domestic Formulations Business Therapeutic Segment-wise break-up Leadership position in key participated segments – Largest brand / brand extensions in excess of Rs150cr UNICHEM # 4 Brands in Top 300 brands Anti- – Losar H, Ampoxin, Losar, & Unienzyme Diabetic, 4% Musculo- Others, 7% Skeletal, 4% In

  21. Slide 21: Brand Building - Focus Brand Portfolio

    Brand Building – Focus Brand Portfolio # Top 10 Brands contributes nearly 50% of the company’s domestic revenues – Losar H, Ampoxin, Losar, Unienzyme, Vizylac,Trika, Serta, Telsar, Unistar and Linox – – # # UNICHEM # 50 Brands contributes ~82% of the company’s domestic revenues 4 - Rs. 50 +crore bra

  22. Slide 22: Top Product Groups Performance

    Top 10 Product Groups Performance Rs. Crores % MAT Sept, % % Market Contribution 2014 Growth Share to Revenue Total Revenue 815 10.7 1.0 100.0 Losar Group 159 (5.4) 33.1 19.5 UNICHEM Ampoxin Group 70 12.6 43.7 8.6 Unienzyme 57 27.5 16.6 7.0 Telsar Group 49 12.3 4.0 6.1 Olsar Group 33 14.4 6.1 4.0 Tr

  23. Slide 23: AWACS Data - MAT Sept, 2014

    AWACS Data – MAT Sept, 2014 Representative Market Unichem Laboratories Therapy Market Segment Size (Rs. Crs) % Growth Sales (Rs. Crs) % Share % Growth Cardiac Care 6,417 8.6 353 5.5 1.6 UNICHEM Anti-Infectives 9,846 3.8 143 1.4 20.7 Neuro-Psychiatry 2,835 7.2 100 3.5 10.7 Gastroenterologicals 4,908

  24. Slide 24: AWACS Data: Quarterly Sales & MAT

    AWACS Data Quarterly Sales & MAT- Mar, 2014 Market Size Value Growth Value Growth Indicators Unichem (Crs) (Crs) (%) (%) Q2 FY 15 22,122 12.3 215 13.0 Q1 FY 15 20,065 8.8 202 10.7 MAT March’ 14 75,588 UNICHEM 6.1 771 6.4 Q1 FY 14 18,426 8.3 184 6.0 Q2 FY 14 19,357 3.2 187 0.1 Q3 FY 14 19,028 4.9 203

  25. Slide 25: Globally Accredited State of the art Manufacturing Facilities

    Globally Accredited State of the art Manufacturing Facilities Formulations – Baddi (HP) – essentially catering to domestic market Regulatory approvals - MHRA, ANVISA and WHO – Ghaziabad (UP) – for catering to regulated and developing regulated markets Regulatory approvals - USFDA, ANVISA, TGA, MHRA,

  26. Slide 26: Domestic Market - Management Focus

    Domestic Market – Management Focus Domestic Market – Entry into unrepresented / uncovered market segments Entered Hospital and Gynecology segments in 2011-12. Currently focusing on portfolio augmentation for enhanced coverage – Enhancing relationship with customers and Focus on Field Productivity UN

  27. Slide 27: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 27

  28. Slide 28: International Formulation Business

    International Formulation Business Company has made significant investments in building infrastructure which includes new R&D centre and API plants for captive consumption to support international business Company is in process of further augmenting it API & Formulation capacities for expected futur

  29. Slide 29: International Business - Formulations: Emerging Global Markets

    International Business – Formulations Zone 1 : Emerging Global Markets Geographic Mix – FY 2014 Geographic Mix – H1 FY 2015 Russia/ CIS, 10% Latin America, 9% UNICHEM Asia Pac, 45% Latin America, Russia/CIS, 19% 10% Africa, 36% Africa, 37% Asia Pac, 35% ©Unichem Laboratories Ltd 29

  30. Slide 30: International Business - Formulations: Regulated Markets

    International Business – Formulations Regulated Markets Geographic Mix – FY 2014 Geographic Mix – H1 FY 2015 US / Canada, 51% UNICHEM Europe, 49% US / Canada, Europe, 40% 60% ©Unichem Laboratories Ltd 30

  31. Slide 31: Regulated Markets - USA and LATAM

    International Business – Formulations Regulated Markets - USA and LATAM UNITED STATES:  UNICHEM PHARMACEUTICALS (USA) Inc - wholly owned subsidiary to manage ANDA filings and Business Development  Business model is based on leveraging Unichem’s technical expertise and production capability with in

  32. Slide 32: Regulated Markets - Europe

    International Business – Formulations Regulated Markets EUROPE  European presence through 100% subsidiary - Niche Generics, UK  The subsidiary identifies products for development, recommends these products to Unichem for development. In the later stages of development the subsidiary sells these UN

  33. Slide 33: International Market - Management Focus

    International Market – Management Focus United States – Develop long term relationships with local partners – Finalize tie-ups for launching ANDA approved products – ANDA filings and approvals – Capitalize end-to-end value chain – Forge relationship with Innovators to become building blocks in NCE R

  34. Slide 34: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 34

  35. Slide 35: API - World class Manufacturing Facilities and Infrastructure

    API-World class Manufacturing Facilities and Infrastructure Roha (Maharashtra) – Multiple plants Regulatory Approvals – USFDA, EDQM, WHO GMP, PMDA, EU GMP, KFDA, ISO, OHSGS and M-FDA UNICHEM Pithampur (MP) – Multiple plants Regulatory Approvals – USFDA, EUGMP, WHO, COFEPRIS More than # 500 Regulator

  36. Slide 36: API - Total Revenue

    API - Total Revenue F Y 2014 H1 F Y 2015 Revenue Break-up by Segment Revenue Break-up by Segment Domestic, Domestic, 21% 23% UNICHEM Exports, Exports, 79% 77% Export Revenue Break-up by Export Revenue Break-up by Region Region USA / Canada USA / ROW 1% Canada, 21 % 1% ROW, 27% Europe 78 % Europe, 72

  37. Slide 37: Management Focus: APIs for Generic Markets

    Management Focus API’s for Generic Markets Improve Profitability of API Business Focus on profitable Generic APIs to New customers in existing Regulated Markets Penetrate into New Regulated Markets UNICHEM Achieve cost leadership in 3~4 molecules Long term Supply Contracts with customers in Regulate

  38. Slide 38: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 38

  39. Slide 39: Research & Development Focus

    Focus Unichem has a two fold R&D strategy – Development of patent non-infringing processes for APIs – Development of Novel Drug Delivery Systems (NDDS) Chemical R&D – Centre of Excellence at Goa offering the most conducive environment for value added research – Developed novel, innovative & efficien

  40. Slide 40: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 40

  41. Slide 41: Management & Governance

    Management & Governance Board of Directors (Dr. P A Mody; Mr. Prafull Anubhai; Mr. Ramdas M Gandhi; Mr. Nasser Munjee; Mr. Prafull D Sheth; Mr. Anand Mahajan) Shareholders Audit Committee Compensation Grievance Committee Committee UNICHEM Chairman & Managing Director Divisional Heads Chairman’s Offi

  42. Slide 42: Agenda

    Agenda 1. Profile & History 2. Growth & Profitability UNICHEM 3. Business Operations – Domestic Operations – International Operations – API Operations 4. Research & Development 5. Management & Governance 6. Financials ©Unichem Laboratories Ltd 42

  43. Slide 43: Standalone Financials (INR Lakhs)

    Standalone Financials (INR Lakhs) For three For three For Six months For Six months Particulars months ended months ended % Growth ended Sept 30, ended Sept 30, % Growth Sept 30, 2014 Sept 30, 2013 2014 2013 Sales Income from Operations: Domestic Operations Formulations 16,658 17,394 -4.2% 34,661 34

  44. Slide 44: Thank You

    Thank You ©Unichem Laboratories Ltd

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