Cohance Lifesciences Ltd · NSE:COHANCE
Cohance Lifesciences — Suven Pharmaceuticals — Q3 FY24 Earnings Presentation
35 slides from Cohance Lifesciences's earnings presentation, 2024
Slide 1: Suven Pharmaceuticals Ltd. Investor Presentation – Q3 and 9M FY24
Suven Pharmaceuticals Ltd. …Towards a Brighter Tomorrow Investor Presentation – Q3 and 9M FY24
Slide 2: Table of Contents
Table of Contents Operating Highlights 04 9M FY24 and Q3 Operating 06 and Financial Performance Business Overview 11 Our Leadership Team 18 Pharma CDMO Sector 22 Overview Specialty Chem CDMO Sector 27 Overview Financial Performance 29 Pg. 2
Slide 3: Safe Harbour
Except for historical information, all of the statements, expectations and assumptions, including expectations and assumptions, contained in this presentation may be forward-looking statements that involve a number of risks and uncertainties. Although Suven attempts to be accurate in making these fo
Slide 4: Operating Highlights
Operating Highlights
Slide 5: Q3 and 9 months FY24 performance
Q3 and 9 months FY24 performance; Adjusted EBITDA margins at 44% despite Specialty Chemical de-stocking Operating Highlights 9 months FY 24 Financial Highlights We continue to have conversations with potential customers and ⚫ witness tractions in RFQ’s. We are striving towards business (18%) 35% 24%
Slide 6: 9M FY24 and Q3 Operating and Financial Performance
9M FY24 and Q3 Operating and Financial Performance
Slide 7: 9 Months FY24 Financial highlights
9 Months FY 24 Financial highlights Pharma CDMO ( ex-covid) grew by 24% and adjusted EBITDA margins at 44% INR Million Particulars 9M FY 24 9M FY 23 YoY change • Revenue growth, excluding spec chem global destocking Revenue from Operations 7,984 9,710 -18% and covid supplies from base stood at 35% w
Slide 8: Q3 FY24 Financial highlights
Q3 FY 24 Financial highlights Adjusted EBITDA margins at 36% despite Specialty Chemical de-stocking INR Million Particulars Q3 FY24 Q3 FY23 YoY change Revenue from Operations 2,198 3,538 -38% Material costs / COGS 724 1,096 -34% Material Margin 1,474 2,441 -40% Material Margin % 67% 69% Manufacturin
Slide 9: 9M FY24 Adjusted EBITDA margins at ~44%; Spec Chem impacted by destocking
9M FY24 Adjusted EBITDA margins at ~44% ; Spec Chem impacted by destocking Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 9,710 44% 32% 41% 29% 7,984 3,965 3,485 2,773 2,569 9M FY23 9M FY24 9M FY23 9M FY24 9M F
Slide 10: Pharma CDMO adjusting for Covid base grew by 24%; Spec Chem impacted by destocking
Pharma CDMO adjusting for Covid base grew by 24%; Spec Chem impacted by inventory destocking Consolidated Financials Operational Revenue (INR Million) Adjusted EBITDA (INR Million) Margin (%) Adjusted PAT (INR Million) Margin (%) 3,538 38% 36% 28% 26% 2,198 1,358 784 977 568 Q3 FY23 Q3 FY24 Q3 FY23
Slide 11: Business Overview
Business Overview
Slide 12: Suven Pharma: India's Leading Innovator Focused CDMO Company
Suven Pharma: India’s Leading Innovator Focused CDMO Company STRONG FINANCIAL TRACK-RECORD OVER 20+ YEARS DEEP CUSTOMER RELATIONSHIPS WITH MARQUEE BIG PHARMA EXTENSIVE DEPTH AND WIDTH OF CHEMISTRY CAPABILITIES MULTIPLE ENGINES OF GROWTH Pg. 12
Slide 13: Historically consistent Growth
Historically consistent Growth Consistently scaled business at 16-20% over several five-year periods Established Track-Record of Consistent Growth 16% 14000 12000 10000 Revenue (INR Million) 19% 8000 6000 4000 16% 21% 2000 0 FY03 FY08 FY08 FY13 FY23 FY18 FY13 FY18 Source: Internal Pg. 13
Slide 14: Marquee long tenured Customer Base
Marquee long tenured Customer Base 15+ 20+ >90% Our top 10 pharma Specialty Chemical Revenues from Pharma customers customers average and Spec Chem Large average tenure tenure Cap customers 100+ 75%+ 13 Active Phase 1- Projects with Active commercial 3 projects global innovators projects where Suven
Slide 15: Extensive Depth and Width of Chemistry Capabilities
We have built extensive Depth and Width of Chemistry Capabilities 34 400+ 880+ Future Years Experience Scientists Projects Executed Evaluating new tech • Alkylations • Asymmetric synthesis • Metallation– MeLi / n n-BuLi / • Acylation • Carbohydrates LDA/HMDS • Seeking customer • Amidation • Grignard
Slide 16: Multiple Engines of Growth Across Business Verticals
Multiple Engines of Growth Across Business Verticals 9M FY24 - Consolidated Pharma CDMO Specialty Chemicals Formulations And Others 56% 27% 17% • Core Business Vertical • 25+ Years of Relationship with an Agro Major • Strong Relationship with Rising Pharma • Long Term Relationship with Big Pharma •
Slide 17: Scaling Suven Pharma into a globally respected CDMO player
We are progressing to scale Suven Pharma into a globally respected CDMO player backed by our strategic pillars Scaling work Develop select Nurture world Add new Optimise with existing new customers class talent technologies Operations customers • Continue on our Deepen and leverage Winning business
Slide 18: Our Leadership Team
Our Leadership Team …to drive next phase of growth journey Executive leadership with global techno-commercial expertise to Accelerate Growth
Slide 19: Our Board of Directors with deep and diverse experience
Our Board of Directors with deep and diverse experience Annaswamy V. Prasada Raju, Pankaj Patwari Shweta Vaidheesh PhD Jalan Executive Managing Non-Executive Non-Executive Chairperson Director Director Director • 35+ years of diverse experience in • Served as Executive Director at • Managing Directo
Slide 20: Augmented our Executive Leadership Team with key leaders from the Industry
Augmented our Executive Leadership Team with key leaders from the Industry Dr. Sudhir Kumar Singh Mr. Gaurav Bahadur Mr. Raju Komaravolu Chief Executive Officer Chief Human Resource Officer Chief Strategy Officer • Previously worked with • Previously worked with • Previously worked with Aragen, Jubi
Slide 21: Advisory Council: Industry Leaders with Rich Global Experience
Advisory Council: Industry Leaders with Rich Global Experience Mr. Venkateswarlu Jasti Mr. Abhijit Mukherjee Mr. James C Mullen Mr. Stefan Stoffel Chairman, Advisory Council Advisor Advisor Advisor • 33+ years work ex • 35+ years work-ex • 40+ years work-ex • Recognized CDMO leader with 40+ years' e
Slide 22: Pharma CDMO Sector Overview
Pharma CDMO Sector Overview
Slide 23: A $70 Bn+ is the addressable market
Small Molecule CDMO A $70 Bn+ is the addressable market Estimated Market Sizes (in $ Bn) 102 Captive API Outsourced 51 Intermediate 70 On-Patent 147 19 35 Total 51+19 = 70 51 35 Outsourced API Addressable Market Off-Patent Total Spend on Small Molecule CMC Source: Industry Research Pg. 23
Slide 24: Small Molecule Pipeline Stays Robust, remains the majority of FDA Approvals
Small Molecule Pipeline Stays Robust, remains the majority of FDA Approvals and Clinical Phase Pipeline A Small Molecule Pipeline continues to grow B Small Molecule Approvals remain despite growth in Biologics the majority Clinical Phase Pipeline (Phase-1 to Pre-Registration) US FDA New Molecule App
Slide 25: Increased Outsourcing to Asia: India expected to be the biggest beneficiary
Small Molecule CDMO Increased Outsourcing to Asia : India expected to be the biggest beneficiary Both India and China are expected to CAGR (E): increase share of Addressable Market CY22-27 Shift of Outsourcing to Asia (Development + Commercial mfg) ~7% Margin pressures driven by increased manufactur
Slide 26: Key Takeaways from our Customer Interactions
Key Takeaways from our Customer Interactions SUVEN A RELIABLE PARTNER OPEN TO EXPANSION NEW MOLECULE FOCUS Suven acknowledged as a Several key customers have COVID had led to slow-down reliable supply partner with expressed interest in on new development which is strong delivery orientation & expand
Slide 27: Specialty Chem CDMO Sector Overview
Specialty Chem CDMO Sector Overview
Slide 28: The Agrochemical Market Witnessed a Sharp Contraction in 2023
The Agrochemical Market Witnessed a Sharp Contraction in 2023 driven by combination of exceptional factors The AgChem market has seen a contraction in 2023 via-a-vis 2022 driven by a combination of exceptional factors Overall decline in Price & 80,000 Volume; impact on generics higher 70,000 ⚫ 5-7%
Slide 29: Financial Performance details
Financial Performance details
Slide 30: Adjusted EBITDA margins sturdy at 40%+, Despite Softness in Revenue
Adjusted EBITDA margins sturdy at 40%+, Despite Softness in Revenue INR million CAGR Consolidated P&L Snapshot FY20 FY21 FY22 FY23 Q3FY23 Q3FY24 9M FY23 9M FY24 FY20-23 Q3 YoY 9M YoY Revenue 8,338 10,097 13,202 13,403 3,538 2,198 9,710 7,984 17.1% -37.9% -17.8% yoy growth% COGS (2,292) (3,019) (3,99
Slide 31: Strong Balance Sheet with Steady Cash Generation
Strong Balance Sheet with Steady Cash Generation INR million Consolidated Balance Sheet Snapshot Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Dec-22 Dec-23 Property, plant and equipment (PPE) 3,531 4,371 5,306 5,842 5,836 5,611 5,836 5,611 Right of use asset (RoU) 9 17 14 169 174 403 174 403 Capital wo
Slide 32: Consistently Healthy Financial and Return Metrics
Consistently Healthy Financial and Return Metrics 2 2 Key Ratios FY20 FY21 FY22 FY23 9M FY23 9M FY24 Basis Net Working Capital (as days of sales) 97 80 114 98 137 116 Core NWC / Revenue * 365 PPE (as % of sales) 42.3% 43.3% 40.2% 43.6% 45.1% 52.7% Closing PPE / Revenue Capex spend during the year (I
Slide 33: Appendix - Adequate Capacity to serve current and future demand
Appendix - Adequate Capacity to serve current and future demand Hyderabad Pashamylaram, Suryapet, Jeedimetla, Knowledge City, Vizag, Andhra Telangana, India Telangana, India Telangana, India Hyderabad, India Pradesh, India API & Formulation Facility Intermediate Mfg. Facility R&D–Pilot Plant Corpora
Slide 34: Contact Information
Contact Information Cyndrella Carvalho, Head - Investor Relations, Suven Pharmaceutical Ltd Tel: +91 9823615656 Email: cyndrella.carvalho@suvenpharm.com Gavin Desa / Rishab Barar CDR - India Tel: +91 98206 37649/ +91 77770 35061 Email: gavin@cdr-india.com / rishab@cdr-india.com Pg. 34
Slide 35: Thank You
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Suven Pharmaceuticals — Q3 FY24 Earnings Presentation on 6ix