Slide 1: Investor Presentation Q4 & FY21
Investor Presentation Q4 & FY21 | 31st May 2021 BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2019 – Marksans Pharma Limited, All Rights Reser ved.
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The company's results may
Slide 3: Contents
Contents 1 Q4 & FY21 Highlights 2 5 Year Performance Review 3 Company Overview 4 Business & Opportunity by Market Size 5 Key Focus Areas 6 Leadership Team 7 Investment Rationale 8 ESG & Corporate Governance 3
Slide 4: Management Commentary
Management Commentary Mark Saldanha M A N A G I N G D I R E C TO R A N D C E O “increasing wallet share with existing customers, addition of new logos and new product I am pleased to share that our all-round growth of 21.3% in FY21 was on the back of launches. Our investments in the US business is b
Slide 5: Q4 & FY21 Highlights
® Marksans Pharma Lrd. Q4 & FY21 Highlights
Slide 6: Financial Highlights and Business Highlights FY21
Financial Highlights Business Highlights- FY21 Q4FY21 • Continuing its expansion strategy in existing markets, Marksans launched 5 new products in UK / Europe markets • Operating Revenue was ₹ 330.2 cr. as compared to ₹ 335.3 Cr. in Q4 FY20 due to deferment of certain sales in lockdown to next quart
Slide 7: Financial Highlights – Profit and Loss Statement
Financial Highlights – Profit and Loss Statement Particulars (₹ cr.) Q4FY21 Q3FY21 Q4FY20 YoY FY21 FY20 YoY Operating Revenue 330.2& 358.4 335.3 -1.5%& 1,376.2 1,134.2 21.3% Gross Profit 203.5 216.9 187.5 8.5% 781.1 566.4 37.9% Gross Profit Margin % 61.6% 60.5% 55.9% 570 bps 56.8% 49.9% 690 bps EBIT
Slide 8: Consistent Performance over Quarters
Consistent Performance over Quarters Operating Revenue Gross Profit (₹ cr.) & Gross Profit Margin % (₹ cr.) 60.5% 61.6% 57.9% 55.9% 335.3 331.2 356.5 358.4 330.2 & 54.1% 216.9 187.5 191.6 203.5 192.8 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 EBITDA (₹ cr.) & EBITDA Margin
Slide 9: Financial Metrices
Financial Metrices ROCE ROE 28.9% 31.6% 32.6% 24.5% 26.3% 24.2% 27.0% 20.8% 22.8% 18.6% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Net Debt to EBIDTA (x) Fixed Asset Turnover Ratio (x)* & 4.5 4.7 4.4 -0.4 -0.4 3.7 4.0 -0.5 -0.6 -0.6 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY2
Slide 10: 5 Year Performance Review
® Marksans Pharma Lrd. 5 Year Performance Review
Slide 11: Financial Highlights
Financial Highlights Operating Revenue (₹ cr.) Gross Profit (₹ cr.) & Gross Profit Margin CAGR : 15.7% 50.2% 49.9% 56.8% 40.2% 42.7% 1376.2 781.1 1000.1 1134.2 566.4 767.2 912.7 502.1 308.4 389.6 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA (₹ cr.) & EBITDA Margin PAT (₹ cr.) & PAT Margi
Slide 12: Financial Ratios
Financial Ratios ROE ROCE 26.3% 32.6% 18.6% 24.6% 2.6% 14.6% 19.1% 3.2% 10.4% 7.5% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Net Debt to EBITDA (X) Fixed Asset Turnover Ratio (x)* 4.0 4.4 1.9 2.9 3.3 3.6 1.0 0.5 ~ -0.6 FY17 FY18 FY19 FY20 FY21 -0.4 FY17 FY18 FY19 FY20 FY21 12 * Includes Tang
Slide 13: Segmental Mix
Segmental Mix Therapeutic Segment-Wise YoY Segment Revenue YoY 100.0% 6.8% 100.0% 10.2% 8.2% 11.7% 13.9% 90.0% 7.5% 8.3% 90.0% 8.6% 8.6% 7.3% 80.0% 80.0% 41.4% 12.0% 8.8% 20.6% 44.1% 18.4% 10.9% 51.0% 70.0% 54.7% 70.0% 58.0% 5.2% 11.7% 6.0% 6.3% 6.7% 60.0% 9.0% 60.0% 14.2% 12.4% 13.8% 13.1% 50.0% 9.
Slide 14: Global Reach Enables Reduction in Country Risk
Global Reach REVENUE MIX Enables Reduction in 3.4% 3.0% 5.6% 4.2% 4.6% 13.8% 10.9% 12.4% 10.6% Country Risk 12.0% 37.3% 45.5% 41.3% 42.3% Company’s business 45.0% is classified under 4 heads: 1 North America/ US generics 45.5% 40.7% 41.1% 42.5% 2 Europe/UK generics 38.5% 3 Australia and New Zealand
Slide 15: Company Overview
® Marksans Pharma Lrd. Company Overview
Slide 16: Company Structure - Parents & Subsidiary
Company Structure - Parents & Subsidiary Marksans Pharma (UK) Limited Distribution of quality Marksans Holdings Limited generic pharma Manufacturer of range of Only OTC 162+ OTC & Rx products; product licenses; Regional sales Manufacturer of 50+ products portfolio Manufacturer of development across
Slide 17: Business Overview
REVENUE MIX - BUSINESS MODEL - OTC Business Overview 59% Rx 41% ~95% FY21 of revenues comes from regulated markets Product Portfolio FY21 (₹ Cr.) Pain Management 604 Anti-Diabetic 150 Forward- Cough & Cold 124 GEOGRAPHIC MIX - integrated Cardiovascular System(CVS) 124 RoW business model Gastrointest
Slide 18: Focussed Business Model
Focussed Business Model Focus on Forward Wider Product Regulated Markets Integrated Basket Business Model • Marksans commenced business with • Marksans commenced operations as a • Marksans commenced its journey with CRAMS directed at the UK and Australian formulations manufacturing enterprise produc
Slide 19: Forward Integrated Business Model
Forward Integrated Business Model R&D and Manufacturing Supply chain and distribution End Consumers AUSTRALIA Retail chains UK Goa, India EUROPE NORTH Pharmacy Stores AMERICA Southport, UK CANADA ROW EXPORT Hospitals Farmingdale, USA 19
Slide 20: Strategic Focus on Regulated Markets
Strategic Focus on Regulated Markets USA Global Footprint Regulatory Approvals Marksans Pharma entered into strategic These markets are empowered with tie-ups and acquired key players in regulatory approvals which allows the major markets to expand its global company to sell its products without foo
Slide 21: Niche Formulations with few Competitors
Niche Formulations with few Competitors DIFFERENTIATED OFFERINGS LIMITED COMPETITION HIGH BARRIERS TO ENTRY Focused on softgel capsules with a view to Given the challenges in preparing Softgel High capex requirements and operational build a differentiated set of offerings in the formulations plus ot
Slide 22: Business & Opportunity by Market Size
Business & Opportunity by Market Size 22
Slide 23: US Business & Opportunity by Market Size
US Business & Opportunity by Market Size ANDA PIPELINE OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E The US holds over 30-40% of the global • In June 2015, Marksans acquired Time-Cap Labs 12 which enabled Marksans to expand its offering in pharmaceutical market. Nominal spend on US market. med
Slide 24: Expansion Strategy for US
Expansion Strategy for US • 50+ products in various therapy area segments in both OTC & Rx US BUSINESS FY21 • Positioned in the niche soft gel category • 23 ANDAs filled till date • Capacity increased by adding more packaging and manufacturing lines • Expanding presence in other North American regio
Slide 25: UK Business & Opportunity by Market Size
UK Business & Opportunity by Market Size C O M PA N Y P R E S E N C E M A R K E T I N G A U T H O R I S AT I O N P I P E L I N E OVERVIEW OF THE MARKET (RELONCHEM) The UK & EU pharmaceutical market is • One of the top 5 Indian pharma companies in the UK. estimated to grow from ~USD 468 billion in 20
Slide 26: Expansion Strategy for UK
Expansion Strategy for UK • Wide UK customer base and 100% reach within the distribution channel. UK BUSINESS FY21 • Broad and diversified range of product portfolio with well recognized brands. • Captured a large share of OTC and generic markets. ORGANIC GROWTH • Working on receiving USFDA approval
Slide 27: Australia Region Business & Opportunity by Market Size
Australia Region Business & Opportunity by Market Size OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E OUTLOOK Australia’s pharmaceutical market is set to • Marksans carries out business operations • Australia and New Zealand will continue to in Australia and New Zealand through its remain focus
Slide 28: Emerging Market Business & Opportunity by Market Size
Emerging Market Business & Opportunity by Market Size OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E OUTLOOK ROW includes markets of South East Asia, • Presence in emerging markets such as • In process of launching new products and South East Asia, MENA, LATAM, CIS and obtaining product registr
Slide 29: Manufacturing Capabilities
Manufacturing Capabilities Goa, India • Manufactures oral solid tablets, C A PA C I T Y A C C R E D I TAT I O N S and soft and hard gelatin capsules 2.4 bn softgel and hard gelatin capsules per annum • Ongoing expansion for adding new manufacturing lines 6 bn solid tablets per annum Southport, UK •
Slide 30: R&D and Product Launches Highlights
RECENT KEY PRODUCT L AUNCHES R&D and Product Brand Composition Losartan Potassium – 25, 50 & 100 Therapy Segment Market COZAAR (Q4FY21) Cardiovascular UK Launches Highlights TAZAC, AXID (Q4FY21) MG Nizatidine – 150 & 300 MG Gastrointestinal UK Pregabaline- 25, 50, 100, 150, 200 & LYRICA (Q4FY21) Cen
Slide 31: Key Focus Areas
® Marksans Pharma Lrd. Key Focus Areas
Slide 32: Key Focus Areas
Key Focus Areas S T R AT E G Y GROWTH LEVERS Expansion The company generates ~95% of its revenue from regulated markets and expects to 1 Expansion of current product portfolio in regulated market further expand in these markets through continued push of existing products in regulated and other relat
Slide 33: Leadership Team
® Marksans Pharma Lrd. Leadership Team
Slide 34: Leadership Team
Leadership Team MR. MARK SALDANHA M R . VA R D D H M A N J A I N M R . S AT H I S H K U M A R M R . D AV I D M O H A M M E D MR. JITENDRA M SHARMA Managing Director & CEO W h o l e - T i m e D i r e c t o r. MD – Marksans Pharma UK Ltd. M D - Pharmaceuticals Australasia pty Chief Financial Officer M
Slide 35: Investment Rationale
® Marksans Pharma Lrd. Investment Rationale
Slide 36: Investment Rationale
Investment Rationale Widening Amongst Largest Key Markets Product Portfolio Pharma Market Company is widening its products portfolio The US, the UK and Australia are the key Marksans is among a handful of Indian in the complex and high-margin generics Marksans’ markets with all of them being players
Slide 37: Investment Rationale
Investment Rationale Sustainable business model with strategic focus on Forward integrated business model with presence 1 regulated markets with markets of USA, UK, Australia and New Zealand contributing to c. 95% of total 5 across the pharma value chain including in-house R&D centers, owned and out
Slide 38: Shareholder Information
Shareholder Information Shareholding as on March 31, 2021 Share Information (as on March 31 2021) NSE Ticker MARKSANS Promoters 48.25% (Shares pledged – Nil) BSE Ticker 524404 Market Cap (INR Cr) 2,045 % free-float 51.75% Free-float market cap (INR Cr) 1,058 Shares Outstanding 40,93,13,698 Others 47
Slide 39: ESG and Corporate Governance
ESG and Corporate Governance 39
Slide 40: ESG Philosophy
ESG Philosophy ENVIRONMENTAL SOCIAL GOVERNANCE • Efficient use of resources to minimize • Company is actively contributing to • Committed to good corporate the waster generation. the social and economic governance to achieve long term development and build a better corporate goals and to enhance • P
Slide 41: ESG at Marksans
ESG at Marksans HELPING WOMEN & Marksans along with Ministry of Health, Government of Goa is helping in Women and child CHILD DEVELOPMENT development, professionalizing Anganwadis and national nutrition mission in Goa. PROVIDE FIRE Company has provided fire extinguishing equipment to the fire depart
Slide 42: Corporate Governance Philosophy
Corporate Governance Philosophy We at Marksans Pharma Ltd adhere to following principles : 1 Conducting Business in Ethical, Transparent and Accountable manner. 2 Producing goods which have a sustainable life cycle. 3 Adherence to ethical working standards to ensure the wellbeing of all employee. 4
Slide 43: Contact Us
Contact Us I N V E S TO R R E L AT I O N S T E A M AT M A R K S A N S P H A R M A CO R P O R AT E O F F I C E Jitendra Sharma Ravi Udeshi/ Rahul Thakur 11th Floor Grandeur, Off Veera Desai Road, (CFO) (Christensen Investor Relations) Opp Gundecha Symphony, Andheri (W), Mumbai – 400 053, Maharashtra