Neuland Laboratories Ltd. · NSE:NEULANDLAB

Neuland Laboratories — Q3 FY2023 Earnings Presentation

43 slides from Neuland Laboratories's earnings presentation, Feb 13, 2023

  1. Slide 1: Outcome of Board Meeting cover letter

    �f NEULAND WHERE OPPORTIJNITY BECOMES R.IALITY Neuland Laboratories Limited 11th Floor, (5th Office Level), Phoenix IVY Building, Plot No. 573A-III, Road No.82, Jubilee Hills, Hyderabad-500033, Telangana, India Tel: 040 67611600 I 67611700 February 13, 2023 Email : neuland@neulandlabs.com www.neulan

  2. Slide 2: Independent Auditor's Review Report (Standalone)

    MSKA & Associates 1101 /B, Manjeera Trinity Corporate JNTU·Hitech City Road, Kukat pally Telangana State, Hyderabad 500072, INDIA Chartered Accountants Tel: +91 4D 6814 2999 Independent Auditor's Review Report on unaudited quarterly and year to date standalone financial results of Neuland Laboratori

  3. Slide 3: Statement of Standalone Financial Results

    NEVLAND WHflU Ofl'ORl\lN!lY ! FC".O.US IUAlln Neu land laboratories Limited 11th Floor, (5th Office Level), Phoenix IVY Building, Plot No. S73A-III, Road No.82, Jubflee Hills, Hyderabad-500033, Telangana, India Te!: 04067611600/ 67611700 Email: neuland@neutandfabs.com www.neulandlabs.com NEVLAND LAB

  4. Slide 4: Notes to standalone results

    N El II AN[) NCJTU; The financial results for the Quarter and nirie months ended 31 December 2022 ha"'! been reviewed by the Audit Committee and approved by the Board t>f Directors at their respective meeting; held on 13th February 2023. ? The financla! results ha-.e been prepared in accordance with

  5. Slide 5: Independent Auditor's Review Report (Consolidated)

    MSKA 8: Associates 1101 /B, Manjeera Trinity Corporate JNTU-Hitech City Road, Kukatpally Telangana State, Hyderabad 500072, INDIA Chartered Accountants Tel: +91 40 6814 2999 Independent Auditor's Review Report on Consolidated Unaudited Quarterly and year to date financial results of Neuland Laborato

  6. Slide 6: Auditor's report continued

    accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting principles generally accepted in India has not disclosed the information required to b

  7. Slide 7: Statement of Consolidated Financial Results

    - ~ NEULAND \Vll!~I' ort·(l~WNJ!Y SECOM!, RIALm Neuland Laboratories Limited 11th Floor, (5th Office Level), Phoenix IVY Building, Plot No. 573A-II!, Road No.82, Jubilee Hills, Hyderabad-500033, Telangana, India Tel: 04067611600/ 67611700 Email : neuland@neulandlabs.com www.neulandlabs.com NEULANP L

  8. Slide 8: Notes to consolidated results

    NOTE'S: 1 The financial results for the quarter and nine months ended 31 Dec 2022 ha,e been reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting5 held on 13th February 2023. 2 The financial results have been prepared in accordance with the Indian Account

  9. Slide 9: Neuland Q3FY23 income at Rs.270.2 crore, up 13.3% YoY

    Neuland Q3FY23 income at Rs.270.2 crore, up 13.3% YoY EBITDA at Rs. 54.9 crore, up 60.5% YoY Hyderabad, India, February 13, 2023 – Neuland Laboratories Limited (NLL) (NSE: NEULANDLAB; BSE:524558), a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates

  10. Slide 10: Q3 FY23 Earnings Call; About Neuland Laboratories Limited

    Q3 FY23 Earnings Call The company will conduct a one-hour Earnings call at 16:30 hrs. IST on Tuesday, February 14, 2023 where the management will discuss the Company’s performance and answer questions from participants. To participate in this conference call, please register on the link below: Diamo

  11. Slide 11: Earnings Presentation Q3 & 9M FY23

    Earnings Presentation Q3 & 9M FY 23 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS

  12. Slide 12: 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", "

  13. Slide 13: Table of Contents

    Table of Contents Q3 & 9M FY-23 1 HIGHLIGHTS 2 BUSINESS OVERVIEW 3 CAPABILITIES 4 FINANCIALS 5 OUTLOOK 3

  14. Slide 14: Q3 & 9M FY-23 Highlights

    Q3 & 9M FY-23 HIGHLIGHTS

  15. Slide 15: Management Speak

    Management Speak SUCHETH DAVULURI “Over the 9-month period, we recorded healthy revenue increase led by continued growth in the high margin Specialty and CMS business. Further, the margin improvement reflects the operating leverage playing out. In line with our strategy, we are seeing a significant

  16. Slide 16: Key Highlights Q3 FY23

    Key Highlights Q3 FY23 Business Highlights Financial Highlights ❖ Specialty business driven by Apixaban and ❖ Total income was Rs. 270.2 crores in Ezetimibe Q3FY23, an increase of 13.3% YoY ❖ EBITDA was Rs. 54.9 crore in Q3FY23, an ❖ CMS business driven by commercial increase of 60.5% YoY molecules

  17. Slide 17: Key Highlights 9M FY23

    Key Highlights 9M FY23 Business Highlights Financial Highlights ❖ Total income was Rs. 785.8 crore in 9MFY23, an increase of 12.3% YoY ❖ Specialty business growth driven by Apixaban, Ezetimibe, Paliperidone, and Donepezil ❖ EBITDA was Rs. 153.3 crore in 9MFY23, an increase of 46.1% YoY ❖ CMS revenue

  18. Slide 18: Profit & Loss Snapshot (Standalone)

    Profit & Loss Snapshot (Standalone) QoQ YoY YoY Particulars (Rs. Cr) Q3FY23 Q2FY23 (%) Q3FY22 (%) 9MFY23 9MFY22 (%) 270.2 293.9 (8.1)% 238.4 13.3% 785.8 699.4 12.3% Total Income 54.9 69.4 (20.9)% 34.2 60.5% 153.3 104.9 46.1% EBITDA 20.3% 23.6% (330) bps 14.3% 600 bps 19.5% 15.0% 450 bps EBITDA Margi

  19. Slide 19: Financials (Standalone)

    Financials (Standalone) Revenue (Rs. Cr) EBITDA (Rs. Cr) and EBITDA Margin (%) 180 25.0% 786 19.5 160 % 23.6% 699 20.3% 140 20.0% 15.0 294 270 120 % 257 238 14.3% 15.3% 15.0% 222 13.1% 100 80 153 69 10.0% 55 60 105 34 39 40 5.0% 29 20 - 0.0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2

  20. Slide 20: Key Operating Metrics

    Key Operating Metrics YoY Analysis QoQ Movement 4% 4% 4% 4% 4% 4% 4% 28% 31% 30% 33% 33% 40% 35% 25% 24% 26% 28% 25% 20% 33% 42% 43% 36% 39% 35% 36% 30% 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Prime Specialty CMS Others 10

  21. Slide 21: Business Salience (Overall Company)

    Business Salience (Overall Company) PRODUCT YoY Analysis QoQ Movement 64% 64% 61% 60% 58% 57% 55% 39% 34% 39% 43% 36% 45% 40% TOP 10 TOP 5 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 CUSTOMER YoY Analysis QoQ Movement 59% 51% 54% 54% 53% 49% 52% 36% 40% 41% 41% 40% 49% 39% 9M FY22 9M FY2

  22. Slide 22: Business Salience (Prime)

    Business Salience (Prime) 9M 9M Q3 Q4 Q1 Q2 Q3 42% 35% 36% 43% 39% 30% 36% FY22 FY23 FY22 FY22 FY23 FY23 FY23 PRODUCT YoY Analysis QoQ Movement 98% 96% 100% 95% 97% 97% 94% TOP 10 76% 76% 70% 67% 73% 79% 78% TOP 5 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY22 Q3 FY23 CUSTOMER YoY Analysis QoQ Move

  23. Slide 23: Business Salience (Specialty)

    Business Salience (Specialty) 9M 9M Q3 Q4 Q1 Q2 Q3 24% 28% FY22 20% 25% 26% 33% 25% FY22 FY23 FY22 FY23 FY23 FY23 YoY Analysis QoQ Movement PRODUCT 89% 92% 91% 89% 86% 87% 76% TOP 10 67% 66% 57% 70% 69% 49% 63% TOP 5 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 CUSTOMER YoY Analysis QoQ M

  24. Slide 24: Business Salience (CMS)

    Business Salience (CMS) 9M 9M Q3 Q4 Q1 Q2 Q3 30% 33% 40% 28% 31% 33% 35% FY22 FY23 FY22 FY22 FY23 FY23 FY23 PRODUCT YoY Analysis 97% QoQ Movement 93% 92% 95% 87% 82% 85% TOP 10 75% 68% 84% 75% 78% 81% 80% TOP 5 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 CUSTOMER YoY Analysis QoQ Movemen

  25. Slide 25: Key Operating Metrics – CMS Revenue Split

    Key Operating Metrics – CMS Revenue Split Rs. In Cr Commercial Development YoY Analysis QoQ Movement 260 209 97 95 94 165 75 38 72 69 49 74 38 42 134 57 48 95 34 27 20 9M FY22 9M FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 15

  26. Slide 26: Number of Active CMS Projects

    Number of Active CMS Projects Q3 FY-23 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 17 4 7 5 8 9 50 Intermediate 10 4 4 2 7 12 39 Grand Total 27 8 11 7 15 21 89 Q3 FY-22 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 15 3 8 5 10 7 48 Intermediate 7 5 2 0 8 11 33 G

  27. Slide 27: Business Overview

    BUSINESS OVERVIEW

  28. Slide 28: Our Journey – Key Milestones

    Our Journey – Key Milestones Laying Strong Foundation Deepening Our Capabilities Increased Sustainable Growth 1984 - 2003 2004 - 2012 2013 - Today Successfully 1984 1986 1994 1997 2004 2007 2008 2009 cleared 15 USFDA Incorporated First API sale of Neuland First USA Japan R&D Centre PMDA, Japan inspe

  29. Slide 29: Generic Drug Substance (GDS)

    Generic Drug Substance (GDS) We started as a Prime API ..Added complex molecules for manufacturer… Speciality 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:

  30. Slide 30: 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 ✓ Complete CMC partner for the API ✓ Patent protection for processes Business Approach ✓ Local presence

  31. Slide 31: Capabilities

    CAPABILITIES

  32. Slide 32: Scaled up Manufacturing Facilities over the years

    Scaled up Manufacturing Facilities over the years UNIT-1 233 KL Bonthapally, Hyderabad UNIT-2 363 KL Pashamylaram, Hyderabad UNIT-3 305 KL Gaddapotharam, Hyderabad Year of 1994 2017* 1986 Establishment Block - 1, 2, 3, 4, H, KL & S 34 Block-1, 2, 3, FC, NMSM, Mini Block - 1, 2, 4, 5 Blocks plant 6 H

  33. Slide 33: Backed up by sound R&D capabilities

    Backed up by sound R&D capabilities R&D Facility, Hyderabad Infrastructure Significant R&D Achievements • 15 Development Labs with space for • Several NCE APIs added in NDA or commercial stage expansion drugs • 60 Fume hoods • Support for multiple APIs each year in Phase 2 • Analytical Labs and Phas

  34. Slide 34: New capabilities built

    New capabilities built FBRM HAZARDOUS & WET LABORATORY Dedicated area Particle size for hazardous check for chemical polymorph management achievement and wet lab expansion PEPTIDE LAB PID LABORATORY, To address 9800 sq. ft. new UNIT-III product quality lab with issues, additional 7 impurities hoods

  35. Slide 35: Global Presence

    Global Presence NORTH AMERICA EUROPE APAC 43% 38% 8% JAPAN MENA INDIA 2% 3% 1% BD Office in LATAM Princeton, New Jersey 3% Since 2004 Our BD Office in JAPAN Since 2007 % Refers to 9M FY23 Sales by End market 25

  36. Slide 36: Regulatory Filings Across Geographies

    Regulatory Filings Across Geographies 31 Filings with Health 10 20 Canada Japanese DMF filed 62 China DMF filed DMFs with USFDA 248 19 26 ROW filings including filings with Turkey, Mexico, Brazil etc KFDA Korea filings with TGA ~499 28 EUDMF filings across Germany, France, CEPs Received for differen

  37. Slide 37: Financials

    FINANCIALS

  38. Slide 38: Continuous Growth…

    Continuous Growth… Rs. In Cr 163 953 953 153 FINANCIAL PERFORMANCE 144 HIGHLIGHTS 767 786 670 105 ▪ Revenue CAGR of 12.5% for FY 19-22 led by growth in all 3 businesses 80 79 61 64 ▪ EBITDA growth of 33.0% CAGR in FY 19-22 due to balanced contribution from both GDS and CMS business 16 16 ▪ Shift to

  39. Slide 39: Stable Balance Sheet..

    Stable Balance Sheet.. Particulars Mar-20 Mar-21 Mar-22 Dec-22 Current Ratio (x) ROCE (%) (Rs. Cr) Shareholde 1.60 706 782 836 906 1.58 13.51 rs' funds 14.60 1.47 1.42 8.89 9.70 Net Debt 214 152 212 72 2020 2021 2022 9MFY23 2020 2021 2022 9MFY23 Investments 8 7 4 2 Tangible 391 438 497 508 Assets Fi

  40. Slide 40: Outlook

    OUTLOOK

  41. Slide 41: ..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

  42. Slide 42: Contact Us

    Contact Us For over 39 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

  43. Slide 43: Thank You

    Thank You Confidential. © 2022 Neuland Laboratories Ltd. All rights reserved.

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