Natco Pharma Limited · NSE:NATCOPHARM
Natco Pharma — Q3 FY2020 Earnings Presentation
17 slides from Natco Pharma's earnings presentation, Feb 15, 2020
Slide 1: Natco Pharma Limited - Filing cover letter
Natco Pharma Limited Regd. Off. : 'NATCO HOUSE’, Road No. 2, Banjara Hills, Hyderabad - 500034. Telangana, INDIA. Tel : +91 40 23547532, Fax : +91 40 23548243 CIN : L24230TG1981PLC003201, www.natcopharma.co.in February 15, 2020 Corporate Relationship Department Manager — Listing M/s. BSE Ltd M/s. Na
Slide 2: Investor Presentation Q3 FY 2019-20
INVESTOR PRESENTATION Q3 FY 2019-20 1
Slide 3: Disclaimer/Important Disclosure
DISCLAIMER/IMPORTANT DISCLOSURE THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF NATCO PHARMA LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of general background i
Slide 4: Business Overview
BUSINESS OVERVIEW Vertically integrated pharmaceutical company with presence across geographies - India, US and ROW Strong brand position in domestic pharma segments - Largest pharmaceutical player in oncology with brands catering to diseases including breast, bone, lung and ovarian cancer - Leading
Slide 5: Performance at a Glance
PERFORMANCE AT A GLANCE Revenue(1) ROE (%) Ownership Structure(3) INR mn 29% 20,789 22,424 22,247 24% 23% 10,897 Promoters, 12% Public ,51.02 48.98 FY2016 FY2017 FY2018 FY2019 EBITDA & EBITDA Margins 25.9% 33.5% 43.2% 41.6% FY2016 FY2017 FY2018 FY2019 INR mn 9,688 9,250 6,973 ROCE (%) Natco Pharma’s
Slide 6: Key Business Segments - Pharma
KEY BUSINESS SEGMENTS- PHARMA Formulations API Subsidiaries Domestic International Exports (Domestic & Exports) ◼ Strong brand position in the domestic ◼ Focused on complex generics for ◼ Strategically important division ◼ Operations in Brazil, Canada, oncology and Hepatitis - C segments the US Sing
Slide 7: US Market - Focus on Complex Generics
US MARKET- FOCUS ON COMPLEX GENERICS US FDF product portfolio is predominantly focused on high-barrier-to-entry products that are typically characterised by one or more of the following: - Intricate chemistry - Challenging delivery mechanism - Difficult or complex manufacturing process - May face co
Slide 8: Strong Growth in Domestic Formulations Business
STRONG GROWTH IN DOMESTIC FORMULATIONS BUSINESS Domestic Formulation Sales(1): Market Leading Growth Domestic Product Launches in FY2019 ◼ Launched 6 products during the year. Target to launch 6-8 products a year. INR mn ◼ Positioned #1 in sales of branded oncology medicines in India. ◼ Market leadi
Slide 9: Strong Market Position in Domestic Oncology Segment
STRONG MARKET POSITION IN DOMESTIC ONCOLOGY SEGMENT Oncology Division Overview Oncology Revenue – Gross (INRmn) ◼ Over 15 years of strong presence in oncology segment. Positioned #1 in sales of branded oncology medicines in India. INR mn ◼ Portfolio of well recognized brands – 6 brands with INR 100m
Slide 10: Expanding RoW Presence
EXPANDING ROW PRESENCE Focus on Canada, Brazil and other RoW markets Europe Canada ◼ Distribution arrangements with our business partner to sell our products in ◼ Expanded beyond Oseltamivir with key Europe filings in oncology segment ◼ 16 approvals in place ◼ Successful listings in major provinces
Slide 11: In-house API Development with Vertical Integration for Key Formulation Products
IN-HOUSE API DEVELOPMENT WITH VERTICAL INTEGRATION FOR KEY FORMULATION PRODUCTS Mekaguda Facility Chennai Facility ◼ Strategically important business – develops APIs primarily for captive consumption of its FDF portfolio as well as third party sales ◼ Portfolio of 45 US DMFs(1) with niche products u
Slide 12: Research & Development Capabilities
RESEARCH & DEVELOPMENT CAPABILITIES R&D capabilities demonstrated by its complex and niche product filings in formulations and API segments ◼ Two research facilities with capabilities across synthetic chemistry, biotech & fermentation, nano 36 ANDAs Approved(2) pharmaceuticals, new drug discovery &
Slide 13: Commitment to Manufacturing Excellence with a Culture of Quality and Compliance
COMMITMENT TO MANUFACTURING EXCELLENCE WITH A CULTURE OF QUALITY AND COMPLIANCE International Markets Formulations Kothur Facility Visakhapatnam Facility ◼ Oral and solid dosages including cytotoxic Orals, cytotoxic injectables ◼ Solid oral tablet and capsule manufacturing Capability and pre-filled
Slide 14: Key Management
KEY MANAGEMENT Mr. V.C Nannapaneni ◼ Holds Masters degree in Pharmaceutical Administration from the Long Island University,USA Chairman and Managing Director ◼ Over 4 decades of experience in the pharmaceutical industry Mr. Rajeev Nannapaneni ◼ Holds bachelors degree in Quantitative Economics and Hi
Slide 15: Goals - Near Term & Long Term
GOALS- NEAR TERM & LONG TERM Domestic Branded Formulations Complex Generics & Export Markets ◼ Maintain leadership position in Oncology and ◼ Focus on growth in key subsidiaries of Canada & Brazil Near-term Strategies Hepatitis-C segment ◼ Intensify regulatory filings rate in RoW markets with a glob
Slide 16: Consolidated Financials
CONSOLIDATED FINANCIALS Consolidated Profit and Loss Statement (INRmn) Consolidated Balance Sheet (INRmn) Particulars 31 March 2019 31 March 2018 Particulars 31 March 2019 31 March 2018 ASSETS Revenue Non-current assets Revenue from operations 20,945 22,020 (a) Property, plant and equipment 12,185 1
Slide 17: Quarterly Financial Summary
QUARTERLY FINANCIAL SUMMARY SEGMENTAL BREAKDOWN (INR Mn) CONSOLIDATED FINANCIAL RESULTS (INR Mn) Revenue Division Q3 FY20 Q2 FY20 Q3 FY19 FY19 Q3 FY20 Q2 FY20 Q3 FY19 FY19 A) API Gross Revenue(1) 923 946 982 3,019 Total Revenues 5,130 5,189 5,800 22,247 B) Formulation: B1) Formulation export (includ